Fauji Cement By Azzam Jafar

Fauji Cement Company Limited

SUBMITTED TO: Mr. Yasir Ghafoor

SUBMITTED BY: Muhammad Azzam Jafar Roll No. 126 BBA (Hons.) 8th Semester (2005-09)

Department Of Management Sciences

UNIVERSITY OF EDUCATION OKARA CAMPUS

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Dedication I dedicate this project to my Parents, Teachers and Friend.

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ACKNOWLEDGEMENT I humbly prostrate to Allah the almighty, the most benevolent and the most merciful for showering his blessing on me throughout my live and especially during my final project. It was He and the prayers of my parents, who gave me courage and will to complete my project. I owe a debt of sincere gratitude, heartiest obligation and appreciation to my worthy teacher Sir Yasir Ghafoor for his guidance, insightful comments and valuable suggestions. I thank to my beloved parents and all of who prayed for me success and time and again restored my confidence myself and help me in every possible way they could. I want to pay my heartiest tribute to all friends for their consistent encouragement, cooperation, inspiring guidance about the project. They helped me in times of troubles; their love, support, devotion and sincerity have been admiration.

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TABLE OF CONTENTS Sr.No.

Details

Page No.

Executive Summary Company Information Company Introduction Mission Statement Vision Statement Values Pest Analysis Financial Analysis Balance Sheet (Trend Analysis) Balance Sheet (Vertical Analysis) Income Statement (Trend Analysis) Income Statement (Vertical Analysis) Ratio Analysis SWOT Analysis BCG Matrix DU Pont Analysis Conclusion Recommendations Annexure

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EXECUTIVE SUMMARY In this professional project analysis of Fauji Cement Company Limited is done in very detail to check out current position, performance and progress of the company. To measure these activities balance sheet (trend analysis), balance sheet (vertical analysis), income statement (trend analysis), income statement (vertical analysis), ratio analysis, Du Pont analysis, SWOT analysis and PEST analysis are performed that has explored the real picture. At the end conclusion is made on the basis of these analysis. Then future recommendations are made to improve company in every aspect.

Company Information

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Board of Directors Lt Gen Syed Arif Hasan, HI (M) (Retired)

Chairman

Maj Gen Malik Iftikhar tikhar Khan, HI (M) (Retired)

Chief Executive / MD

Mr. Qaiser Javed

Director

Mr. Riyaz H. Bokhari, IFU

Director

Brig Arif Rasul Qureshi, SI (M) (Retired)

Director

Brig Rahat Khan, SI (M) (Retired)

Director

Dr. Nadeem Inayat

Director

Brig Liaqat Ali (Retired)

Director

Brig Munawar Ahmed Rana, SI(M) (Retired)

Director

Company Secretary: Brig Shabbir Ahmed (Retired) House No. 62, Khayaban-e-Iqbal (Margalla Road), F-7/2, Islamabad - Pakistan Tel: (051) 9221690 Fax: (051) 9221693 E-mail: [email protected] Web Site: http: //www.fccl.com .pk

Chief Financial Officer: Mr. Omer Ashraf T el: (051) 2651762

Registered Office and Sales Department: Ist Floor, Aslam Plaza, 8

60 Adam Jee Road, Sadar, Rawalpindi – Pakistan Tel: (051) 5523836, 5528042, 5528960, 5528963-64 Fax: (051) 5528965-66

Factory: Near Village Jhang, Tehsil Fateh Jang District: Attock Tel: 057-2538047-48, 2538138, 2538148 – 49 Fax: 057-2538025

Auditors: M/s KPMG Taseer Hadi & Co, Chartered Accountants Fax No: (051) 2822671

Legal Advisors: Farooq Law Associates, Advocates & Attorneys Fax No: (051) 2272643

Registration & Shares Transfer Officer: M/s CORPLINK (PVT) LIMITE D Wings Arcade, 1-K, Commercial, Model Town, Lah ore Ph No: 042-5839182, 588726 2 Fax No: 042-5869037

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Introduction 10

Corporate Profile A longtime leader in the cement manufacturing industry, Fauji Cement Company, headquartered in Islamabad, operates a cement plant at Jhang Bahtar, Tehsil Fateh Jang, and District Attock in the province of Punjab. The company has a strong and longstanding tradition of service, reliability, and quality that reaches back more than 10 years. Sponsored by Fauji Foundation the Company was incorporated in Rawalpindi in 1992. The cement plant operating in the Fauji Cement is one of the most efficient and best maintained in the country and has an annual production capacity of 1.165 million tons of cement. The quality Portland cement produced at this plant is the best in the Country and is preferred the construction of highways, bridges, commercial and industrial complexes, residential homes, and a myriad of other structures needing speedy strengthening bond, fundamental to Pakistan's economic vitality and quality of life.

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Mission Statement FCCL while maintaining its leading position in quality of cement and through greater market outreach will build up and improve its value addition with a view to ensuring optimum returns to the shareholders.

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Vision Statement To transform FCCL into a role model cement manufacturing Company fully aware of generally accepted principles of corporate social responsibilities engaged in nation building through most efficient utilization of resources and optimally benefiting all stake holders while enjoying public respect and goodwill.

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Values Customers We listen to our customers and improve our product to meet their present and future needs. People Our success depends upon high performing people working together in a safe and healthy work place where diversity, development and team work are valued and recognized. Accountability We expect superior performance and results. Our leaders set clear goals and expectations, are supportive and provide and seek frequent feed back. Citizen Ship We support the communities where we do business, hold ourselves to the highest standards of ethical conduct and environment responsibility, and communicate openly with FCCL people and the public. Financial Responsibility We are prudent and effective in the use of the resources entrusted to us.

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Pest analysis 18

Political analysis Political scenario of Pakistan has seen many important changes in recent years. Some important events are as o Controlled democracy o Grass root democracy o Stability in Government o Accountability in all departments o Participation of religious people in Government o Enlightened moderate policy o Front role in war against terrorism o Better image in world o Cut the roots of extremists o Reformation regarding all important fields All these changes have taken place in last 7 years and it has made Pakistan entirely a changed country. 　Especially Pakistan role against extremism has brought it one of the best appreciated countries of the world. On the other hand being the only Islamic country which has nuclear deterrence it is leading the Muslim world. West wants Friendship with it. Locally there is great stability in Government after 10 yeas of was between PPP and PML. All these factors tell that now Pakistan is a good place as long as political issues are concerned.

Economic analysis Before year 1999, economy of Pakistan was at worst. Forex was very low and it has to borrow even to repay loans. Debts were $38 billion. Economics indicators were showing negative signs. But then change in Government brought many changes. Some positive points are as under. o Increase in GDP 6% per annum

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o Increase in per capita income as 8% o Increase in exports up to 12.5 billion dollars o Forex reserve up to 13 billion dollars o Privatization o Boom in stock market o IT sector development o More than 1 billion dollars investment per year Although economy of Pakistan is making rapid progress but there are problems of expensive petrol and electricity, which increases the cost of goods. Over all economic indicators are showing very positive signs and now it is an attractive market for all types of international investors.

Situational analysis Pakistani market has shown good movement towards all types of positive indicators. Now interest rates are low, saving schemes are giving less profits, consumers banking is at peaking, new jobs are being created by Government as well as foreign investment. All these situations are calling for new and new opportunities and investors.

Technological analysis Pakistan is considered as developing country. Although it is nuclear power yet it lacks behind in other technologies. Now it has made good progress in digital revolution but still it has to import heavy machinery from developed countries.

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Balance Sheet (Trend Analysis) Fauji Cement Company Limited Balance Sheet(Trend Analysis) 2004 2005 2006 100.00% 204.15% 274.93% 100.00% 306.01% 430.06% 100.00% 407.60% 580.74% 100.00% 121.17% 230.95% 100.00% 43.97% 0.00% 100.00% 485.19% 398.15%

CURRENT ASSETS Cash and bank balances Deposit accounts Current accounts Collection accounts Cash in hand

2007 340.06% 214.69% 293.17% 94.01% 0.00% 329.63%

2008 921.58% 1919.91% 2733.41% 126.79% 0.00% 479.63%

Trend analysis 3000.00%

Cash and bank balances

Percentage

2500.00% Deposit accounts

2000.00% 1500.00%

Current accounts

1000.00%

Collection accounts

500.00% 0.00% 2004

2005

2006

2007

2008

Cash in hand

Years

CURRENT ASSETS The amount of Current Assets in the year 2004 was Rs.574460 and it increases to Rs.1172765 in the year 2005 with and increment of Rs.598305. And the amount of Current Assets in the year 2005 was Rs.1172765 and it increases to Rs.1579382 in the year 2006 with an increment of Rs.406617. The amount of Current Assets in the year 2006 was Rs.1579382 and it increases to Rs.1953527 in the year 2007 with and increment of Rs.374145 The amount of Current Assets in the year 2007was Rs.1953527 and it increases to Rs.5294083 in the year 2008 with and increment of Rs.3340556 22

And the amount Current Assets in the final year 2008 is Rs.5294083 The amount of Current Assets in the year 2004 was 100.00% .and it increases to 204.15% in the year 2005 with an increment of 104.15% And the amount of Current Assets in the year 2005 was 204.15% and it increases to 274.93% in the year 2006 with an increment of 70.78% The amount of Current Assets in the year 2006 was 274.93% and it increases to 340.06% in the year 2007 with and increment of 65.13% The amount of Current Assets in the year 2007 was 340.06% and it increases to 921.58% in the year 2008 with and increment of 581.52% And the amount Current Assets in the final year 2008 is 921.58%. Cash and Bank balances The amount of Cash and bank balances in the year 2004 was Rs.197088 and it becomes Rs.603110 in the year 2005 with an increment of Rs.197088 The amount of Cash and bank balances in the year 2005 was Rs.603110 and it becomes Rs.847590 in the year 2006 with an increment of Rs.244480 The amount of Cash and bank balances in the year 2006 was Rs.847590 and it becomes Rs.423133 in the year 2007 with a decrement of Rs.424457 The amount of Cash and bank balances in the year 2007 was Rs.423133 and it becomes Rs.3783909 in the year 2008 with an increment of Rs.3360776 And the amount of Cash and bank balances in the final year 2008 is Rs.3783909 The amount of Cash and bank balances in the year 2004 was 100.00% and it becomes 306.01% in the year 2005 with an increment of 206.01% The amount of Cash and bank balances in the year 2005 was 306.01% and it becomes 430.06% in the year 2006 with an increment of 124.05% The amount of Cash and bank balances in the year 2006 was 430.06% and it becomes 214.69% in the year 2007 with a decrement of 215.37% The amount of Cash and bank balances in the year 2007 was 214.69% and it becomes 1919.91% in the year 2008 with an increment of 1705.22%

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And the amount of Cash and bank balances in the final year 2008 is 1919.91% Deposit accounts The amount of deposit accounts in the first year 2004 was Rs.137433 and it becomes Rs.560177 in the year 2005 with an increment of Rs.422744 The amount of deposit accounts in the year 2005 was Rs.560117 and it becomes Rs.798122 in the year 2006 with an increment of Rs.237945 The amount of deposit accounts in the year 2006 was Rs.798122 and it becomes Rs.402907 in the year 2007 with a Decrement of Rs.395215 The amount of deposit accounts in the year 2007 was Rs.402907 and it becomes Rs.3756611 in the year 2008 with an increment of Rs.3353704 And the amount of deposit accounts in the final year 2008 is Rs.37566611 The amount of deposit accounts in the first year 2004 was 100.00% and it becomes 407.60% in the year 2005 with an increment of 207.60% The amount of deposit accounts in the year 2005 was 407.60% and it becomes 580.74% in the year 2006 with an increment of 173.14% The amount of deposit accounts in the year 2006 was 580.74% and it becomes 293.17% in the year 2007 with a Decrement of 287.57% The amount of deposit accounts in the year 2007 was 293.17% and it becomes 2733.41% in the year 2008 with an increment of 2440.24% And the amount of deposit accounts in the final year 2008 is 2733.41% Current accounts The amount of current accounts in the first year 2004 was Rs.21326 and it becomes Rs.25840 in the year 2005 with increment of Rs.4514 The amount of current accounts in the year 2005 was Rs.25840 and it becomes Rs.49253 in the year 2006 with increment of Rs.23413 The amount of current accounts in the year 2006 was Rs.49253 and it becomes Rs.20048 in the year 2007 with Decrement of Rs.29205

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The amount of current account in the year 2007 was Rs.20048 and it becomes Rs.27039 in the year 2008 with increment of Rs.6991 And the amount of current accounts in the final year 2008 is Rs.27039 The amount of current accounts in the first year 2004 was 100.00% and it becomes 121.17% in the year 2005 with increment of 21.17% The amount of current accounts in the year 2005 was 121.17% and it becomes 230.95% in the year 2006 with increment of 109.78% The amount of current accounts in the year 2006 was 230.95% and it becomes 94.01% in the year 2007 with Decrement of 136.94% The amount of current account in the year 2007 was 94.01% and it becomes 126.79% in the year 2008 with increment of 32.78% And the amount of current accounts in the final year 2008 is 126.79% Collection accounts The amount of current account in the first year 2004 was Rs.38275 and it becomes Rs.16831 in the year 2005 with decrement of Rs.21444 And the amount of collection account in the up coming years 2006, 2007 and 2008 is zero The amount of current account in the first year 2004 was 100.00% and it becomes 43.97% in the year 2005 with decrement of 56.03% And the amount of collection account in the up coming years 2006, 2007 and 2008 is 0.00%

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Cash in hand The amount of cash in hand in the first year 2004 was Rs.54 and it becomes Rs.262 in the year 2005 with increment of Rs.208 The amount of cash in hand in the year 2005 was Rs.262 and it becomes Rs.215 in the year 2006 with decrement of Rs.47 The amount of cash in hand in the year 2006 was Rs.215 and it becomes Rs.178 in the year 2007 with decrement of Rs.37 The amount of cash in hand in the year 2007 was Rs.178 and it becomes Rs.259 in the year 2008 with increment of Rs.81 And the amount of cash in hand in the final year 2008 is Rs.259 The amount of cash in hand in the first year 2004 was 100.00% and it becomes 485.19% in the year 2005 with increment of 285.19% The amount of cash in hand in the year 2005 was Rs.485.19% and it becomes 398.15% in the year 2006 with decrement of 87.04% The amount of cash in hand in the year 2006 was 398.15% and it becomes 329.63% in the year 2007 with decrement of 68.52% The amount of cash in hand in the year 2007 was 329.63% and it becomes 479.63% in the year 2008 with increment of 250.00% And the amount of cash in hand in the final year 2008 is 479.63%

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Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 Advances, Deposits, prepayments and other receivables: To suppliers To employees Due from associated undertaking unsecured Deposits Prepayments Excise duty

2006

2007

2008

100.00% 100.00% 100.00%

62.57% 53.31% 174.39%

95.59% 92.59% 365.03%

1167.06% 2395.69% 138.31%

469.63% 45.59% 550.78%

100.00% 100.00% 100.00% 100.00%

99.82% 113.18% 40.68% 30.84%

283.05% 142.04% 93.69% 0.00%

0.00% 136.71% 29.46% 0.00%

0.00% 436.94% 37.39% 0.00%

To suppliers

Trend analysis

To employees

3000.00% Percentage

2500.00% Due from associated undertaking - unsecured

2000.00% 1500.00%

Deposits

1000.00% 500.00%

Prepayments

0.00% 2004

2005

2006

2007

2008 Excise duty

Years

Advance tax -net

Advances, Deposits, prepayments and other receivables:

Sales tax refundable -net

The amount of advances, deposits, prepayments and other receivables in the first year Derivative foreign currency options used as hedging 2004 was Rs.73583 and it becomes Rs.46041 in the year 2005 with decrement of instrument Interest accrued

Rs.27542

The amount of advances, deposits, prepayments and other receivables in the yearfee2005 Prepaid arrangement for loans

was Rs.46041 and it becomes Rs.70340 in the year 2006 with decrement of Rs.24299 Margin on letters of credit

The amount of advances, deposits, prepayments and other receivables in the year 2006 was Rs.70340 and it becomes Rs.858758 in the year 2007 with increment of Rs.788418 Other receivablesConsidered goods

The amount of cash in hand in the year 2007 was Rs.858758 and it becomes Rs.345567 in the year 2008 with decrement of Rs.513191 27

Others

And the amount of Advances, Deposits, prepayments and other receivables in the final year 2008 is Rs.345567 The amount of advances, deposits, prepayments and other receivables in the first year 2004 was 100.00% and it becomes 62.57% in the year 2005 with decrement of 37.43% The amount of advances, deposits, prepayments and other receivables in the year 2005 was 62.57% and it becomes 95.59% in the year 2006 with increment of 33.02% The amount of advances, deposits, prepayments and other receivables in the year 2006 was 95.59% and it becomes 1167.06% in the year 2007 with increment of 1071.47% The amount of cash in hand in the year 2007 was 1167.06% and it becomes 469.63% in the year 2008 with decrement of 697.43% And the amount of Advances, Deposits, prepayments and other receivables in the final year 2008 is Rs.469.63%

TRADE DEBTS Considered goods Considered doubtful Secure-considered goods Provision for doubtful debts

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 100.00% 239.41% 56.88% 100.00% 105.34% 114.41% 100.00% 100.00% 100.00% 100.00% 371.96% 0.00% 100.00% 100.00% 100.00%

TRADE DEBTS

Trend analysis

Percentage

2007 43.67% 34.89% 532.74% 52.34% 532.74%

Unsecured

600.00% 500.00% 400.00% 300.00% 200.00% 100.00% 0.00%

Considered goods Considered doubtful Secure-considered goods 2004

2005

2006

2007

2008 Less: Provision for doubtful debts

Years

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2008 60.12% 0.00% 309.38% 119.55% 309.38%

TRADE DEBTS The amount of trade debts in the first year 2004 was Rs.44789 and it becomes Rs.107231 in the year 2005 with decrement of Rs.62442 The amount of trade debts in the first year 2005 was Rs.107231 and it becomes Rs.25475 in the year 2006 with increment of Rs.81756 The amount of trade debts in the first year 2006 was Rs.25475 and it becomes Rs.19558 in the year 2007 with decrement of Rs.5917 The amount of trade debts in the first year 2007 was Rs.19558 and it becomes Rs.26927 in the year 2008 with increment of Rs.7369 And the amount of trade debts in the final year 2008 is Rs.26927 The amount of trade debts in the first year 2004 was 100.00% and it becomes 239.41% in the year 2005 with increment of 139.41% The amount of trade debts in the first year 2005 was 239.41% and it becomes 56.88% in the year 2006 with decrement of 182.53% The amount of trade debts in the first year 2006 was 56.88% and it becomes 43.67% in the year 2007 with decrement of 13.21% The amount of trade debts in the first year 2007 was 43.67% and it becomes 60.12% in the year 2008 with increment of 16.45% And the amount of trade debts in the final year 2008 is 60.12% Considered goods The amount of considered goods in the first year 2004 was Rs.22266 and it becomes Rs.23454 in the year 2005 with increment of Rs.1188 The amount of considered goods in the year 2005 was Rs.23454 and it becomes Rs.25475 in the year 2006 with increment of Rs.2021 The amount of considered goods in the year 2006 was Rs.25475 and it becomes Rs.7769 in the year 2007 with decrement of Rs.17706 The amount of considered goods in the year 2007 was Rs.7769 and it becomes Rs.0 in the year 2008

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And the amount of considered goods in the final year 2008 is Rs.0 The amount of considered goods in the first year 2004 was 100.00% and it becomes 105.34% in the year 2005 with increment of 5.34% The amount of considered goods in the year 2005 was 105.34% and it becomes 114.41% in the year 2006 with increment of 9.07% The amount of considered goods in the year 2006 was 114.41% and it becomes 34.89% in the year 2007 with decrement of 79.52% The amount of considered goods in the year 2007 was 34.89% and it becomes 0.00% in the year 2008 And the amount of considered goods in the final year 2008 is 0.00% Considered doubtful The amount of considered doubtful in the first year 2004 was Rs.1567 and it becomes Rs.1567 in the year 2005 and 2006. The amount of considered doubtful in the year 2006 was Rs.1567 and it becomes Rs.8348 in the year 2007 with increment of Rs.6781 The amount of considered doubtful in the year 2007 was Rs.8348 and it becomes Rs.4848 in the year 2008 with decrement of Rs.3500 And the amount of considered doubtful in the final year 2008 is Rs.4848 The amount of considered doubtful in the first year 2004 was 100.00% and it becomes 100.00% in the year 2005 and 2006. The amount of considered doubtful in the year 2006 was 100.00% and it becomes 532.74% in the year 2007 with increment of 432.74% The amount of considered doubtful in the year 2007 was 532.74% and it becomes 309.38% in the year 2008 with decrement of 223.36% And the amount of considered doubtful in the final year 2008 is 309.38%

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Secure-considered goods The amount of secure-considered goods in the first year 2004 was Rs.22523 and it becomes Rs.83777 in the year 2005 with increment of Rs.61254. The amount of secure-considered goods in the year 2005 was Rs.83777 and it becomes Rs.0 in the year 2006. The amount of secure-considered goods in the year 2007 was Rs.11789 and it becomes Rs.26927 in the year 2008 with increment of Rs.15138. And the amount of secure-considered goods in the final year 2008 is Rs.26927. The amount of secure-considered goods in the first year 2004 was 100.00% and it becomes 371.96% in the year 2005 with increment of 271.96% The amount of secure-considered goods in the year 2005 was 371.96% and it becomes 0.00% in the year 2006. The amount of secure-considered goods in the year 2007 was 52.34% and it becomes 119.55% in the year 2008 with increment of 67.21% And the amount of secure-considered goods in the final year 2008 is 119.55% Provision for doubtful debts The amount of provision for doubtful debts in the first year 2004 was Rs.1567 and it becomes Rs.1567 in the year 2005 and 2006. The amount of provision for doubtful debts in the year 2007 was Rs.8348 and it becomes Rs.4848 in the year 2008 with decrement of Rs.3500. And the amount of provision for doubtful debts in the final year 2008 is Rs.4848. The amount of provision for doubtful debts in the first year 2004 was 100.00% and it becomes 100.00% in the year 2005 and 2006. The amount of provision for doubtful debts in the year 2007 was 532.74% and it becomes 309.38% in the year 2008 with decrement of 223.36 And the amount of provision for doubtful debts in the final year 2008 is 309.38%

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STOCK IN TRADE Raw and packing material Work in process Finished goods

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 100.00% 90.80% 235.54% 100.00% 121.32% 184.00% 100.00% 41.87% 337.42% 100.00% 138.80% 125.74%

2007 297.58% 157.19% 415.05% 237.21%

2008 373.52% 205.41% 549.44% 248.67%

Percentage

Trend analysis 600.00% 500.00%

STOCK IN TRADE

400.00% 300.00% 200.00%

Raw and packing material Work in process Finished goods

100.00% 0.00% 2004

2005

2006

2007

2008

Years

STOCK IN TRADE The amount of stock in trade in the first year 2004 was Rs.61600 and it becomes Rs.55931 in the year 2005 with decrement of Rs.5669 The amount of stock in trade in the year 2005 was Rs.55931 and it becomes Rs.145090 in the year 2006 with increment of Rs.89159. The amount of stock in trade in the year 2006 was Rs.145090 and it becomes Rs.183309 in the year 2007 with increment of Rs.38219. The amount of stock in trade in the year 2007 was Rs.183309 and it becomes Rs.230089 in the year 2008 with increment of Rs.46780. And the amount of stock in trade in the final year 2008 is Rs.230089. The amount of stock in trade in the first year 2004 was 100.00% and it becomes 90.80% in the year 2005 with decrement of 9.20%

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The amount of stock in trade in the year 2005 was 90.80% and it becomes 235.54% in the year 2006 with increment of 144.74% The amount of stock in trade in the year 2006 was 235.54% and it becomes 297.58% in the year 2007 with increment of 62.04% The amount of stock in trade in the year 2007 was 297.58% and it becomes 373.52% in the year 2008 with increment of 75.94% And the amount of stock in trade in the final year 2008 is 373.52% Raw and packing material The amount of raw and packing material in the first year 2004 was Rs.15224 and it becomes Rs.18469 in the year 2005 with increment of Rs.3245 The amount of raw and packing material in the year 2005 was Rs.18469 and it becomes Rs.28012 in the year 2006 with increment of Rs.9543 The amount of raw and packing material in the year 2006 was Rs.28012 and it becomes Rs.23931 in the year 2007 with decrement of Rs.4081 The amount of raw and packing material in the year 2007 was Rs.23931 and it becomes Rs.31271 in the year 2008 with increment of Rs.7340 And the amount of raw and packing material in the final year 2008 is Rs.31271 The amount of raw and packing material in the first year 2004 was 100.00% and it becomes 121.32% in the year 2005 with increment of 21.32% The amount of raw and packing material in the year 2005 was 121.32% and it becomes 184.00% in the year 2006 with increment of 62.68% The amount of raw and packing material in the year 2006 was 184.00% and it becomes 157.19% in the year 2007 with decrement of 26.81% The amount of raw and packing material in the year 2007 was 157.19% and it becomes 205.41% in the year 2008 with increment of 48.22% And the amount of raw and packing material in the final year 2008 is 205.41%

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Work in process The amount of work in process in the first year 2004 was Rs.27761 and it becomes Rs.11624 in the year 2005 with decrement of Rs.16137 The amount of work in process in the year 2005 was Rs.11624 and it becomes Rs.93671 in the year 2006 with increment of Rs.82047. The amount of work in process in the year 2006 was Rs.93671 and it becomes Rs.115221 in the year 2007 with increment of Rs.21550. The amount of work in process in the year 2007 was Rs.115221 and it becomes Rs.152529 in the year 2008 with increment of Rs.37308. And the amount of work in process in the final year 2008 is Rs.152529. The amount of work in process in the first year 2004 was 100.00% and it becomes 41.87% in the year 2005 with decrement of 58.13% The amount of work in process in the year 2005 was 41.87% and it becomes 337.42% in the year 2006 with increment of 295.55% The amount of work in process in the year 2006 was 337.42% and it becomes 415.05% in the year 2007 with increment of 77.63% The amount of work in process in the year 2007 was 415.05% and it becomes 549.44% in the year 2008 with increment of 134.39% And the amount of work in process in the final year 2008 is 549.44% Finished goods The amount of finished goods in the first year 2004 was Rs.18615 and it becomes Rs.25838 in the year 2005 with increment of Rs.7223. The amount of finished goods in the year 2005 was Rs.25838 and it becomes Rs.23407 in the year 2006 with decrement of Rs.2431. The amount of finished goods in the year 2006 was Rs.23407 and it becomes Rs.44157 in the year 2007 with increment of Rs.20750. The amount of finished goods in the year 2007 was Rs.44157 and it becomes Rs.46289 in the year 2008 with increment of Rs.2132.

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And the amount of finished goods in the final year 2008 is Rs.46289. The amount of finished goods in the first year 2004 was 100.00% and it becomes 138.80% in the year 2005 with increment of 38.80% The amount of finished goods in the year 2005 was 138.80% and it becomes 125.74% in the year 2006 with decrement of 13.06% The amount of finished goods in the year 2006 was 125.74% and it becomes 237.21% in the year 2007 with increment of 111.47% The amount of finished goods in the year 2007 was 237.21% and it becomes 248.67% in the year 2008 with increment of 11.46% And the amount of finished goods in the final year 2008 is 248.67%

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools

100.00% 100.00% 100.00% 100.00%

182.60% 149.83% 206.65% 114.73%

2006

2007

2008

248.68% 276.30% 236.79% 168.79%

237.47% 86.30% 333.02% 175.80%

459.77% 578.20% 404.46% 188.62%

Trend analysis

Percentage

800.00% 600.00%

STORES, SPARES AND LOOSE TOOLS

400.00%

Stores

200.00%

Spares

0.00% 2004

2005

2006

2007

Years

35

2008

Loose tools

STORES, SPARES AND LOOSE TOOLS The amount of stores, spares and loose tools in the first year 2004 was Rs.197400 and it becomes Rs.360452 in the year 2005 with increment of Rs.163052. The amount of stores, spares and loose tools in the year 2005 was Rs.360452 and it becomes Rs.490887 in the year 2006 with increment of Rs.130435. The amount of stores, spares and loose tools in the year 2006 was Rs.490887 and it becomes Rs.468769 in the year 2007 with decrement of Rs.22118. The amount of stores, spares and loose tools in the year 2007 was Rs.468769 and it becomes Rs.907591 in the year 2008 with increment of Rs.438822. And the amount of stores, spares and loose tools in the final year 2008 is Rs.907591. The amount of stores, spares and loose tools in the first year 2004 was 100.00% and it becomes 182.60% in the year 2005 with increment of 82.60% The amount of stores, spares and loose tools in the year 2005 was 182.60% and it becomes 248.68% in the year 2006 with increment of 66.08% The amount of stores, spares and loose tools in the year 2006 was 248.68% and it becomes 237.47% in the year 2007 with decrement of 11.21% The amount of stores, spares and loose tools in the year 2007 was 237.47% and it becomes 459.77% in the year 2008 with increment of 222.30% And the amount of stores, spares and loose tools in the final year 2008 is 459.77% Stores The amount of stores in the first year 2004 was Rs.71837 and it becomes Rs.107633 in the year 2005 with increment of Rs.35796. The amount of stores in the year 2005 was Rs.107633 and it becomes Rs.198485 in the year 2006 with increment of Rs.90852. The amount of stores in the year 2006 was Rs.198485 and it becomes Rs.61997 in the year 2007 with decrement of Rs.136488. The amount of stores in the year 2007 was Rs.61997 and it becomes Rs.415358 in the year 2008 with increment of Rs.353361.

36

And the amount of stores in the final year 2008 is Rs.415358. The amount of stores in the first year 2004 was 100.00% and it becomes 149.83% in the year 2005 with increment of 49.83% The amount of stores in the year 2005 was 149.83% and it becomes 276.30% in the year 2006 with increment of 126.47% The amount of stores in the year 2006 was 276.30% and it becomes 86.30% in the year 2007 with decrement of 190.00% The amount of stores in the year 2007 was 86.30% and it becomes 578.20% in the year 2008 with increment of 491.90% And the amount of stores in the final year 2008 is 578.20% Spares The amount of spares in the first year 2004 was Rs.118324 and it becomes Rs.244514 in the year 2005 with increment of Rs.126190. The amount of spares in the year 2005 was Rs.244514 and it becomes Rs.280183 in the year 2006 with increment of Rs.35669. The amount of spares in the year 2006 was Rs.280183 and it becomes Rs.394046 in the year 2007 with increment of Rs.113863. The amount of spares in the year 2007 was Rs.394046 and it becomes Rs.478579 in the year 2008 with increment of Rs.84533. And the amount of spares in the final year 2008 is Rs.478579. The amount of spares in the first year 2004 was 100.00% and it becomes 206.65% in the year 2005 with increment of 106.65% The amount of spares in the year 2005 was 206.65% and it becomes 236.79% in the year 2006 with increment of 30.14% The amount of spares in the year 2006 was 236.79% and it becomes 333.02% in the year 2007 with increment of 96.23% The amount of spares in the year 2007 was 333.02% and it becomes 404.46% in the year 2008 with increment of 71.44

37

And the amount of spares in the final year 2008 is 404.46% Loose tools The amount of loose tools in the first year 2004 was Rs.7239 and it becomes Rs.8305 in the year 2005 with increment of Rs.1066. The amount of loose tools in the first year 2005 was Rs.8305 and it becomes Rs.12219 in the year 2006 with increment of Rs.3914. The amount of loose tools in the first year 2006 was Rs.12219 and it becomes Rs.12726 in the year 2007 with increment of Rs.507. The amount of loose tools in the first year 2007 was Rs.12726 and it becomes Rs.13654 in the year 2008 with increment of Rs.928. And the amount of spares in the final year 2008 is Rs.13654. The amount of loose tools in the first year 2004 was 100.00% and it becomes 114.73% in the year 2005 with increment of 14.73% The amount of loose tools in the year 2005 was 114.73% and it becomes 168.79% in the year 2006 with increment of 54.06% The amount of loose tools in the year 2006 was 168.79% and it becomes 175.80% in the year 2007 with increment of 7.01% The amount of loose tools in the year 2007 was 175.80% and it becomes 188.62% in the year 2008 with increment of 12.83%. And the amount of spares in the final year 2008 is 188.62%

38

LONG TERM DEPOSITS Islamabad Electric Supply Company Limited Sui Northern Gas Pipelines Limited

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 100.00% 127.35% 127.35%

2007 127.35%

2008 127.35%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

166.74%

166.74%

166.74%

166.74%

Amount

Balance Sheet 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

LONG TERM DEPOSITS Islamabad Electric Supply Company Limited Sui Northern Gas Pipelines Limited

2004

2005

2006

2007

2008

Years

LONG TERM DEPOSITS The amount of long term deposits in the first year 2004 was Rs.36600 and it becomes Rs.46611 in the year 2005, 2006, 2007 and 2008 with decrement of Rs.10011. The amount of long term deposits in the first year 2004 was 100.00% and it becomes 127.35% in the year 2005, 2006, 2007 and 2008 with decrement of 27.35%

39

Islamabad Electric Supply Company Limited The amount of Islamabad Electric Supply Company Limited in the year 2004, 2005, 2006, 2007 and 2008 was Rs.21600. The amount of Islamabad Electric Supply Company Limited in the year 2004, 2005, 2006, 2007 and 2008 was 100.00% Sui Northern Gas Pipelines Limited The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was Rs.15000 and it becomes Rs.25011 in the year 2005, 2006, 2007 and 2008 with increment of Rs.10011. The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was 100.00% and it becomes 166.74% in the year 2005, 2006, 2007 and 2008 with increment of 66.74%.

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 LONG TERM ADVANCES Considered goods Sui Northern Gas Pipelines Limited Amount receivables within 12 months shown under current assets

100.00%

40

2006

2007

2008

100.00%

90.00% 100.00%

80.00% 90.00%

100.00%

100.00%

Percentage

Trend analysis 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00%

LONG TERM ADVANCES Considered goods Sui Northern Gas Pipelines Limited

2004

2005

2006

2007

2008

Years

Less: Amount receivables within 12 months shown under current assets

LONG TERM ADVANCES - Considered goods The amount of LONG TERM ADVANCES - Considered goods in the first year 2004 was Rs.0 and it becomes Rs.9000 in the year 2005 and 2006 with increment of Rs.9000. The amount of LONG TERM ADVANCES - Considered goods in the year 2007 was Rs.8100 and it becomes Rs.7200 in the year 2008 with decrement of Rs.900. And the amount of long term advances-considered goods in the final year 2008 is Rs.7200 The amount of LONG TERM ADVANCES - Considered goods in the year 2005 and 2006 was 100.00% and it becomes 90.00% in the year 2007 with decrement of 10.00% The amount of LONG TERM ADVANCES - Considered goods in the year 2007 was 90.00% and it becomes 80.00% in the year 2008 with decrement of 10.00% And the amount of long term advances-considered goods in the final year 2008 is 80.00% Sui Northern Gas Pipelines Limited The amount of Sui Northern Gas Pipelines Limited in the year 2004, 2005 and 2006 was Rs.0 and it becomes Rs.9000 in the year 2007 with increment of Rs.9000. And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is Rs.8100. The amount of Sui Northern Gas Pipelines Limited in the year 2007 was 100.00% and it becomes 90.00% in the year 2008 with decrement of 10.00% And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is 90.00%.

41

FIXED ASSETS - Tangible: Property, Plant and equipment

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 100.00% 98.50% 96.49% 100.00% 98.50% 96.49%

2007 92.88% 92.88%

2008 150.27% 150.27%

Trend analysis

Percentage

200.00% 150.00%

FIXED ASSETS - Tangible:

100.00%

Property, Plant and equipment

50.00% 0.00% 2004

2005

2006

2007

2008

Years

FIXED ASSETS – Tangible The amount of fixed assets-tangible in the first year 2004 was Rs.4729254 and it becomes Rs.4658272 in the year 2005 with decrement of Rs.70982. The amount of fixed assets-tangible in the year 2005 was Rs.4658272 and it becomes Rs.4563115 in the year 2006 with decrement of Rs.95157. The amount of fixed assets-tangible in the year 2006 was Rs.4563115 and it becomes Rs.4392450 in the year 2007 with decrement of Rs.170665. The amount of fixed assets-tangible in the year 2007 was Rs.4392450 and it becomes Rs.7106599 in the year 2008 with increment of Rs.2714149. And the amount of fixed assets-tangible in the final year 2008 is Rs.7106599. The amount of fixed assets-tangible in the first year 2004 was 100.00% and it becomes 98.50% in the year 2005 with decrement of 1.50% The amount of fixed assets-tangible in the year 2005 was 98.50% and it becomes 96.49% in the year 2006 with decrement of 2.01%

42

The amount of fixed assets-tangible in the year 2006 was 96.49% and it becomes 92.88% in the year 2007 with decrement of 3.61% The amount of fixed assets-tangible in the year 2007 was 92.88% and it becomes 150.27% in the year 2008 with increment of 57.39% And the amount of fixed assets-tangible in the final year 2008 is 150.27%

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 Total Assets

100.00%

105.30%

104.87%

2007 108.30%

2008 210.72%

Trend Analysis 250.00%

Percentages

200.00% 150.00% Total Assets 100.00% 50.00% 0.00% 2004

2005

2006

2007

2008

Years

Total Assets The amount of total assets in the first year 2004 was Rs.5910353 and it becomes Rs.6223788 in the year 2005 with increment of Rs.313435. The amount of total assets in the year 2005 was Rs.6223788 and it becomes Rs.6198108 in the year 2006 with decrement of Rs.25680.

43

The amount of total assets in the year 2006 was Rs.6198108 and it becomes Rs.6400688 in the year 2007 with increment of Rs.202580. The amount of total assets in the year 2007 was Rs.6400688 and it becomes Rs.12454493 in the year 2008 with increment of Rs.6053805. And the amount of total assets in the final year 2008 is Rs.12454493 The amount of total assets in the first year 2004 was 100.00% and it becomes 105.30% in the year 2005 with increment of 5.30% The amount of total assets in the year 2005 was 105.30% and it becomes 104.87% in the year 2006 with decrement of 0.43% The amount of total assets in the year 2006 was 104.87% and it becomes 108.30% in the year 2007 with increment of 3.43% The amount of total assets in the year 2007 was 108.30% and it becomes 210.72% in the year 2008 with increment of 102.42% And the amount of total assets in the final year 2008 is 210.72%

44

Trade and other payables: Creditors Accrued liabilities Retention money Security deposits Advances from customers Workers' (Profit) Participation Fund Workers' Welfare fund

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 100.00% 101.19% 154.54% 100.00% 100.70% 130.91% 100.00% 105.82% 100.07% 100.00% 97.36% 118.71% 100.00% 113.82% 149.19% 100.00% 183.57% 254.07% 100.00% 234.20%

Percentage

Trend analysis

2007 171.92% 179.11% 187.35% 110.79% 153.37% 293.11% 103.84% 100.00%

Trade and other payables:

120000.00%

Creditors

100000.00%

Accrued liabilities

80000.00%

Retention money

60000.00% 40000.00%

Sesurity deposits

20000.00%

Advances from customers

0.00% 2004

2005

2006

2007

2008

Years

Workers' (Profit) Participation Fund Workers' Welfare fund Sales tax payable- net Excise duty payable

Trade and other payables

Other liabilities

The amount of trade and other payables in the first year 2004 was Rs.272476 and it Compensated absences becomes Rs.275718 in the year 2005 with increment of Rs.3242.

The amount of trade and other payables in the year 2005 was Unclaimed Rs.275718dividend and it becomes Rs.421074 in the year 2006 with increment of Rs.145356. The amount of trade and other payables in the year 2006 was Rs.421074 and it becomes Rs.468447 in the year 2007 with increment of Rs.47373. The amount of trade and other payables in the year 2007 was Rs.468447 and it becomes Rs.493210 in the year 2008 with increment of Rs.24763. And the amount of trade and other payables in the final year 2008 is Rs.493210 45

2008 181.01% 144.57% 275.43% 143.42% 144.98% 178.82% 61.11% 157.67%

The amount of trade and other payables in the first year 2004 was 100.00% and it becomes 101.19% in the year 2005 with increment of 1.19% The amount of trade and other payables in the year 2005 was 101.19% and it becomes 154.54% in the year 2006 with increment of 53.35% The amount of trade and other payables in the year 2006 was 154.54% and it becomes 171.92% in the year 2007 with increment of 17.38% The amount of trade and other payables in the year 2007 was 171.92% and it becomes 181.01% in the year 2008 with increment of 9.09% And the amount of trade and other payables in the final year 2008 is 181.01% Creditors The amount of creditors in the first year 2004 was Rs.45651 and it becomes Rs.45969 in the year 2005 with increment of Rs.318. The amount of creditors in the year 2005 was Rs.45969 and it becomes Rs.59763 in the year 2006 with increment of Rs.13794. The amount of creditors in the year 2006 was Rs.59763 and it becomes Rs.81766 in the year 2007 with increment of Rs.22003. The amount of creditors in the year 2007 was Rs.81766 and it becomes Rs.65997 in the year 2008 with decrement of Rs.15769. And the amount of creditors in the final year 2008 is Rs.65997. The amount of creditors in the first year 2004 was 100.00% and it becomes 100.70% in the year 2005 with increment of .0.70% The amount of creditors in the year 2005 was 100.70% and it becomes 130.91% in the year 2006 with increment of 30.21% The amount of creditors in the year 2006 was 130.91% and it becomes 179.11% in the year 2007 with increment of 48.20% The amount of creditors in the year 2007 was 179.11% and it becomes 144.57% in the year 2008 with decrement of 34.54% And the amount of creditors in the final year 2008 is 144.57%

46

Accrued liabilities The amount of accrued liabilities in the first year 2004 was Rs.63425 and it becomes Rs.67119 in the year 2005 with increment of Rs.3694. The amount of accrued liabilities in the year 2005 was Rs.67119 and it becomes Rs.63470 in the year 2006 with decrement of Rs.3649. The amount of accrued liabilities in the year 2006 was Rs.63470 and it becomes Rs.118828 in the year 2007 with increment of Rs.55358. The amount of accrued liabilities in the year 2007 was Rs.118828 and it becomes Rs.174692 in the year 2008 with increment of Rs.55864. And the amount of accrued liabilities in the final year 2008 is Rs.174692 The amount of accrued liabilities in the first year 2004 was 100.00% and it becomes 105.82% in the year 2005 with increment of 5.82% The amount of accrued liabilities in the year 2005 was 105.82% and it becomes 100.07% in the year 2006 with decrement of 5.75% The amount of accrued liabilities in the year 2006 was 100.07% and it becomes 187.35% in the year 2007 with increment of 87.28% The amount of accrued liabilities in the year 2007 was 187.35% and it becomes 275.43% in the year 2008 with increment of 88.08% And the amount of accrued liabilities in the final year 2008 is 275.43% Retention money The amount of retention money in the first year 2004 was Rs.10819 and it becomes Rs.10533 in the year 2005 with decrement of Rs.286. The amount of retention money in the year 2005 was Rs.10533 and it becomes Rs.12843 in the year 2006 with increment of Rs.2310. The amount of retention money in the year 2006 was Rs.12843 and it becomes Rs.11986 in the year 2007 with decrement of Rs.857. The amount of retention money in the year 2007 was Rs.11986 and it becomes Rs.15517 in the year 2008 with increment of Rs.3531.

47

And the amount of retention money in the final year 2008 is Rs.15517 The amount of retention money in the first year 2004 was 100.00% and it becomes 97.36% in the year 2005 with decrement of 2.64% The amount of retention money in the year 2005 was 97.36% and it becomes 118.71% in the year 2006 with increment of 21.35% The amount of retention money in the year 2006 was 118.71% and it becomes 110.79% in the year 2007 with decrement of 7.92% The amount of retention money in the year 2007 was 110.79% and it becomes 143.42% in the year 2008 with increment of 32.63% And the amount of retention money in the final year 2008 is 143.42% Security deposits The amount of security deposits in the first year 2004 was Rs.25462 and it becomes Rs.28982 in the year 2005 with increment of Rs.3520. The amount of security deposits in the year 2005 was Rs.28982 and it becomes Rs.37986 in the year 2006 with increment of Rs.9004. The amount of security deposits in the year 2006 was Rs.37986 and it becomes Rs.39051 in the year 2007 with increment of Rs.1065. The amount of security deposits in the year 2007 was Rs.39051 and it becomes Rs.36916 in the year 2008 with decrement of Rs.2135. And the amount of security deposits in the final year 2008 is Rs.36916. The amount of security deposits in the first year 2004 was 100.00% and it becomes 113.82% in the year 2005 with increment of 13.82% The amount of security deposits in the year 2005 was 113.82% and it becomes 149.19% in the year 2006 with increment of 35.37% The amount of security deposits in the year 2006 was 149.19% and it becomes 153.37% in the year 2007 with increment of 4.18% The amount of security deposits in the year 2007 was 153.37% and it becomes 144.98% in the year 2008 with decrement of 8.39%

48

And the amount of security deposits in the final year 2008 is 144.98% Advances from customers The amount of advances from customers in the first year 2004 was Rs.23121 and it becomes Rs.42444 in the year 2005 with increment of Rs.19323. The amount of advances from customers in the year 2005 was Rs.42444 and it becomes Rs.58744 in the year 2006 with increment of Rs.16300. The amount of advances from customers in the year 2006 was Rs.58744 and it becomes Rs.67770 in the year 2007 with increment of Rs.9026. The amount of advances from customers in the year 2007 was Rs.67770 and it becomes Rs.41344 in the year 2008 with decrement of Rs.26426. And the amount of advances from customers in the final year 2008 is Rs.41344. The amount of advances from customers in the first year 2004 was 100.00% and it becomes 183.57% in the year 2005 with increment of 83.57% The amount of advances from customers in the year 2005 was 183.57% and it becomes 254.07% in the year 2006 with increment of 70.50% The amount of advances from customers in the year 2006 was 254.07% and it becomes 293.11% in the year 2007 with increment of 39.04% The amount of advances from customers in the year 2007 was 293.11% and it becomes 178.82% in the year 2008 with decrement of 114.29% And the amount of advances from customers in the final year 2008 is 178.82% Workers' (Profit) Participation Fund The amount of Workers' (Profit) Participation Fund in the first year 2004 was Rs.0 and it becomes Rs.39949 in the year 2005 with increment of Rs.39949. The amount of Workers' (Profit) Participation Fund in the year 2005 was Rs.39949 and it becomes Rs.93562 in the year 2006 with increment of Rs.53613. The amount of Workers' (Profit) Participation Fund in the year 2006 was Rs.93562 and it becomes Rs.41483 in the year 2007 with decrement of Rs.52079.

49

The amount of Workers' (Profit) Participation Fund in the year 2007 was Rs.41483 and it becomes Rs.24413 in the year 2008 with decrement of Rs.17070. And the amount of Workers' (Profit) Participation Fund in the final year 2008 is Rs.24413. The amount of Workers' (Profit) Participation Fund in the year 2005 was 100.00% and it becomes 234.20% in the year 2006 with increment of 134.20% The amount of Workers' (Profit) Participation Fund in the year 2006 was 234.20% and it becomes 103.84% in the year 2007 with decrement of 130.36% The amount of Workers' (Profit) Participation Fund in the year 2007 was 103.84% and it becomes 61.11% in the year 2008 with decrement of 42.73% And the amount of Workers' (Profit) Participation Fund in the final year 2008 is 61.11% Workers' Welfare fund The amount of Workers' Welfare fund in the first three year 2004, 2005 and 2006 was Rs.0 and it becomes Rs.16085 in the year 2007 with increment of Rs.16085. The amount of Workers' Welfare fund in the year 2007 was Rs.16085 and it becomes Rs.25362 in the year 2008 with increment of Rs.9277. The amount of Workers' Welfare fund in the year 2007 was 100.00% and it becomes 157.67% in the year 2008 with increment of 57.67% And the amount of Workers' Welfare fund in the final year 2008 is 157.67%

50

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 Habib Bank Limited MCB Bank Limited United Bank Limited Bank Al Falah Limited NIB Bank Limited PICIC Commercial Bank Limited

100.00% 100.00% 100.00% 100.00%

65.29% 65.29% 65.29% 65.29%

100.00%

65.29%

2007 47.11% 47.11% 47.11% 47.11% 100.00% 0.00%

Trend analysis 120.00% Loans from banking companies Secured:

100.00%

Percentage

Habib Bank Limited 80.00% MCB Bank Limited 60.00%

United Bank Limited

40.00%

Bank Al Falah Limited

20.00%

NIB Bank Limited

0.00% 2004

2005

2006

2007

2008

PICIC Commercial Bank Limited

Years

Habib Bank Limited The amount of Habib Bank Limited in the first year 2005 was Rs.916667 and it becomes Rs.598485 in the year 2006 with decrement of Rs.318182 The amount of Habib Bank Limited in the year 2006 was Rs.598485 and it becomes Rs.431818 in the year 2007 with decrement of Rs.166667 The amount of Habib Bank Limited in the year 2007 was Rs.431818 and it becomes Rs.265152 in the year 2008 with decrement of Rs.166666 And the amount of Habib Bank Limited in the final year 2008 is Rs.265152.

51

2008 28.93% 28.93% 28.93% 28.93% 61.40% 0.00%

The amount of Habib Bank Limited in the first year 2005 was 100.00% and it becomes 65.29% in the year 2006 with decrement of 34.71% The amount of Habib Bank Limited in the year 2006 was 65.29% and it becomes 47.11% in the year 2007 with decrement of 18.18% The amount of Habib Bank Limited in the year 2007 was 47.11% and it becomes 28.93% in the year 2008 with decrement of 18.18% And the amount of Habib Bank Limited in the final year 2008 is 144.57%

MCB Bank Limited The amount of MCB Bank Limited in the first year 2005 was Rs.916667 and it becomes Rs.598485 in the year 2006 with decrement of Rs.318182 The amount of MCB Bank Limited in the year 2006 was Rs.598485 and it becomes Rs.431818 in the year 2007 with decrement of Rs.166667 The amount of MCB Bank Limited in the year 2007 was Rs.431818 and it becomes Rs.265152 in the year 2008 with decrement of Rs.166666 And the amount of MCB Bank Limited in the final year 2008 is Rs.265152. The amount of MCB Bank Limited in the first year 2005 was 100.00% and it becomes 65.29% in the year 2006 with decrement of 34.71% The amount of MCB Bank Limited in the year 2006 was 65.29% and it becomes 47.11% in the year 2007 with decrement of 18.18% The amount of MCB Bank Limited in the year 2007 was 47.11% and it becomes 28.93% in the year 2008 with decrement of 18.18% And the amount of MCB Bank Limited in the final year 2008 is 144.57%

United Bank Limited The amount of United Bank Limited in the first year 2005 was Rs.458333 and it becomes Rs.299243 in the year 2006 with decrement of Rs.159090. The amount of United Bank Limited in the year 2006 was 299243 and it becomes Rs.215909 in the year 2007 with decrement of Rs.83334.

52

The amount of United Bank Limited in the year 2007 was Rs.215909 and it becomes Rs.132576 in the year 2008 with decrement of Rs.83333. And the amount of United Bank Limited in the final year 2008 is Rs.132576

The amount of United Bank Limited in the first year 2005 was 100.00% and it becomes 65.29% in the year 2006 with decrement of 34.71% The amount of United Bank Limited in the year 2006 was 65.29% and it becomes 47.11% in the year 2007 with decrement of 18.18% The amount of United Bank Limited in the year 2007 was 47.11% and it becomes 28.93% in the year 2008 with decrement of 18.18% And the amount of United Bank Limited in the final year 2008 is 144.57%

Bank Al Falah Limited The amount of Bank Al Falah Limited in the first year 2005 was Rs.458333 and it becomes Rs.299243 in the year 2006 with decrement of Rs.159090. The amount of Bank Al Falah Limited in the year 2006 was 299243 and it becomes Rs.215909 in the year 2007 with decrement of Rs.83334. The amount of Bank Al Falah Limited in the year 2007 was Rs.215909 and it becomes Rs.132576 in the year 2008 with decrement of Rs.83333. And the amount of Bank Al Falah Limited in the final year 2008 is Rs.132576 The amount of Bank Al Falah Limited in the first year 2005 was 100.00% and it becomes 65.29% in the year 2006 with decrement of 34.71% The amount of Bank Al Falah Limited in the year 2006 was 65.29% and it becomes 47.11% in the year 2007 with decrement of 18.18% The amount of Bank Al Falah Limited in the year 2007 was 47.11% and it becomes 28.93% in the year 2008 with decrement of 18.18% And the amount of Bank Al Falah Limited in the final year 2008 is 144.57%

53

NIB Bank Limited The amount of NIB Bank Limited in the year 2007 was Rs.129546 and it becomes Rs.79544 in the year 2008 with decrement of Rs.50002 And the amount of NIB Bank Limited in the final year 2008 is Rs.79544. The amount of NIB Bank Limited in the year 2007 was 100.00% and it becomes 61.40% in the year 2008 with decrement of 38.60% And the amount of NIB Bank Limited in the final year 2008 is 61.40%

PICIC Commercial Bank Limited The amount of PICIC Commercial Bank Limited in the first year 2005 was Rs.275000 and it becomes Rs.179545 in the year 2006 with decrement of Rs.95455 The amount of PICIC Commercial Bank Limited in the year 2006 was Rs.179545 and it becomes 0 in the year 2007 and 2008. The amount of PICIC Commercial Bank Limited in the first year 2005 was 100.00% and it becomes 65.29% in the year 2006 with decrement of 34.71% The amount of PICIC Commercial Bank Limited in the year 2006 was 65.29% and it becomes 0.00% in the year 2007 and 2008.

54

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 Loan from related party: Fauji Foundation- Unsecured Amount payable within 12 months shown under current liabilities

2007

2008

100.00%

0.00%

0.00%

0.00%

100.00%

99.46%

99.46%

99.46%

Trend analysis B-S Loan from related party:

Percentage

150.00% 100.00%

Fauji Foundation- Unsecured

50.00% 0.00% 2004

2005

2006

2007

Years

2008

Less:amount payable within 12 months shown under current liabilities

Fauji Foundation- Unsecured The amount of Fauji Foundation- Unsecured in the year 2005 was Rs.50000 and it becomes Rs.0 in the years 2006, 2007 and 2008. The amount of Fauji Foundation- Unsecured in the year 2005 was 100.00% and it becomes 0.00% in the years 2006, 2007 and 2008.

55

Total Liabilities

Fauji Cement Company Limited Balance Sheet (Trend Analysis) 2004 2005 2006 100.00% 105.30% 104.87%

2007 108.30%

2008 210.72%

Trend Analysis 250.00%

Percentages

200.00% 150.00% Total Liabilities 100.00% 50.00% 0.00% 2004

2005

2006

2007

2008

Years

Total Liabilities The amount of Total Liabilities in the first year 2004 was Rs.3971219 and it becomes Rs.3774164 in the year 2005 with decrement of Rs.197055 The amount of Total Liabilities in the year 2005 was Rs.3774164 and it becomes Rs.2915492 in the year 2006 with decrement of Rs.858672. The amount of Total Liabilities in the year 2006 was Rs.2915492 and it becomes Rs.2665482 in the year 2007 with decrement of Rs.250010 The amount of Total Liabilities in the year 2007 was Rs.2665482 and it becomes Rs.3170512 in the year 2008 with increment of Rs.505030 And the amount of Total Liabilities in the final year 2008 is Rs.3170512. The amount of Total Liabilities in the first year 2004 was 100.00% and it becomes 105.30% in the year 2005 with increment of 5.30% 56

The amount of Total Liabilities in the year 2005 was 105.30% and it becomes 104.87% in the year 2006 with decrement of 0.43% The amount of Total Liabilities in the year 2006 was 104.87% and it becomes 108.30% in the year 2007 with increment of 3.43% The amount of Total Liabilities in the year 2007 was 108.30% and it becomes 210.72% in the year 2008 with increment of 102.42% And the amount of Total Liabilities in the final year 2008 is 210.72%

57

Balance Sheet (Vertical Analysis) Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 CURRENT ASSETS Cash and bank balances Deposit accounts Current accounts Collection accounts Cash in hand

9.72% 3.33% 2.33% 0.36% 0.65% 0.00%

18.84% 9.69% 9.00% 0.42% 0.27% 0.00%

25.48% 13.67% 12.88% 0.79% 0.00% 0.00%

2007

2008

30.52% 6.61% 6.29% 0.31% 0.00% 0.00%

42.51% 30.38% 30.16% 0.22% 0.00% 0.00%

Percentage

Vertical analysis B-S 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Cash and bank balances Deposit accounts Current accounts Collection accounts Cash in hand 2004

2005

2006

2007

2008

Years

Current Assets The amount of Current Assets in the year 2004 was Rs.574460 and it increases to Rs.1172765 in the year 2005 with and increment of Rs.598305. And the amount of Current Assets in the year 2005 was Rs.1172765 and it increases to Rs.1579382 in the year 2006 with an increment of Rs.406617. The amount of Current Assets in the year 2006 was Rs.1579382 and it increases to Rs.1953527 in the year 2007 with and increment of Rs.374145 The amount of Current Assets in the year 2007was Rs.1953527 and it increases to Rs.5294083 in the year 2008 with and increment of Rs.3340556 And the amount Current Assets in the final year 2008 is Rs.5294083 58

The amount of Current Assets in the year 2004 was 9.72% .and it increases to 18.84% in the year 2005 with and increment of 9.12% And the amount of Current Assets in the year 2005 was 18.84% and it increases to 25.48%in the year 2006 with an increment of 6.64% The amount of Current Assets in the year 2006 was 25.48% and it increases to 30.52% in the year 2007 with and increment of 5.04% The amount of Current Assets in the year 2007 was 30.52 % and it increases to 42.51 in the year 2008 with and increment of 11.99% And the amount Current Assets in the final year 2008 is 42.51%.

Cash and Bank balances The amount of Cash and bank balances in the year 2004 was Rs.197088 and it becomes Rs.603110 in the year 2005 with an increment of Rs.197088 The amount of Cash and bank balances in the year 2005 was Rs.603110 and it becomes Rs.847590 in the year 2006 with an increment of Rs.244480 The amount of Cash and bank balances in the year 2006 was Rs.847590 and it becomes Rs.423133 in the year 2007 with a decrement of Rs.424457 The amount of Cash and bank balances in the year 2007 was Rs.423133 and it becomes Rs.3783909 in the year 2008 with an increment of Rs.3360776 And the amount of Cash and bank balances in the final year 2008 is Rs.3783909 The amount of Cash and bank balances in the year 2004 was 3.33% and it becomes 9.69% in the year 2005 with an increment of6.36% The amount of Cash and bank balances in the year 2005 was 9.69% and it becomes 13.67% in the year 2006 with an increment of 6.98% The amount of Cash and bank balances in the year 2006 was 13.67% and it becomes 6.61% in the year 2007 with a decrement of 7.06% The amount of Cash and bank balances in the year 2007 was 6.61% and it becomes 30.38% in the year 2008 with an increment of 23.77% 59

And the amount of Cash and bank balances in the final year 2008 is 30.38%

Deposit accounts The amount of deposit accounts in the first year 2004 was Rs.137433 and it becomes Rs.560177 in the year 2005 with an increment of Rs.422744 The amount of deposit accounts in the year 2005 was Rs.560117 and it becomes Rs.798122 in the year 2006 with an increment of Rs.237945 The amount of deposit accounts in the year 2006 was Rs.798122 and it becomes Rs.402907 in the year 2007 with a Decrement of Rs.395215 The amount of deposit accounts in the year 2007 was Rs.402907 and it becomes Rs.3756611 in the year 2008 with an increment of Rs.3353704 And the amount of deposit accounts in the final year 2008 is Rs.37566611

The amount of deposit accounts in the first year 2004 was 2.33% and it becomes 9.00% in the year 2005 with an increment of 6.67% The amount of deposit accounts in the year 2005 was 6.00% and it becomes 12.88% in the year 2006 with an increment of 6.88% The amount of deposit accounts in the year 2006 was 12.88% and it becomes 6.29% in the year 2007 with a decrement of 6.59% The amount of deposit accounts in the year 2007 was 6.29% and it becomes 30.16% in the year 2008 with an increment of 23.87% And the amount of deposit accounts in the final year 2008 is 30.16%

Current accounts The amount of current accounts in the first year 2004 was Rs.21326 and it becomes Rs.25840 in the year 2005 with increment of Rs.4514 The amount of current accounts in the year 2005 was Rs.25840 and it becomes Rs.49253 in the year 2006 with increment of Rs.23413 The amount of current accounts in the year 2006 was Rs.49253 and it becomes Rs.20048 in the year 2007 with Decrement of Rs.29205

60

The amount of current account in the year 2007 was Rs.20048 and it becomes Rs.27039 in the year 2008 with increment of Rs.6991 And the amount of current accounts in the final year 2008 is Rs.27039 The amount of current accounts in the first year 2004 was 0.36% and it becomes 0.42% in the year 2005 with increment of 0.06% The amount of current accounts in the year 2005 was 0.42% and it becomes 0.79% in the year 2006 with increment of 0.37% The amount of current accounts in the year 2006 was 0.79% and it becomes 0.31% in the year 2007 with decrement of 0.48% The amount of current account in the year 2007 was 0.31% and it becomes 0.22% in the year 2008 with decrement of 0.09% And the amount of current accounts in the final year 2008 is 0.22%

Collection accounts The amount of current account in the first year 2004 was Rs.38275 and it becomes Rs.16831 in the year 2005 with decrement of Rs.21444 And the amount of collection account in the up coming years 2006, 2007 and 2008 is zero The amount of current account in the first year 2004 was 0.65% and it becomes 0.27% in the year 2005 with decrement of 0.38% And the amount of collection account in the up coming years 2006, 2007 and 2008 is 0.00%

Cash in hand The amount of cash in hand in the first year 2004 was Rs.54 and it becomes Rs.262 in the year 2005 with increment of Rs.208 The amount of cash in hand in the year 2005 was Rs.262 and it becomes Rs.215 in the year 2006 with decrement of Rs.47

61

The amount of cash in hand in the year 2006 was Rs.215 and it becomes Rs.178 in the year 2007 with decrement of Rs.37 The amount of cash in hand in the year 2007 was Rs.178 and it becomes Rs.259 in the year 2008 with increment of Rs.81 And the amount of cash in hand in the final year 2008 is Rs.259

The amount of cash in hand in the years 2004, 2005, 2006, 2007 and 2008 is 0.00%.

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 Advances, Deposits, prepayments and other receivables: To suppliers To employees Due from associated undertaking unsecured Deposits Prepayments Excise duty

2006

2007

2008

1.24% 0.58% 0.01%

0.74% 0.29% 0.01%

1.13% 0.51% 0.03%

13.42% 12.74% 0.01%

2.77% 0.12% 0.02%

0.02% 0.02% 0.18% 0.17%

0.02% 0.02% 0.07% 0.05%

0.05% 0.03% 0.16% 0.00%

0.00% 0.03% 0.05% 0.00%

0.00% 0.05% 0.03% 0.00%

Vertical analysis B-S 16.00%

Advances, Deposits, prepayments and other receivables: To suppliers

14.00% Percentage

12.00%

To employees

10.00% 8.00%

Due from associated undertaking unsecured Deposits

6.00% 4.00%

Prepayments

2.00% 0.00%

Excise duty 2004

2005

2006

2007

Years

2008

Advance tax -net Sales tax refundable -net Derivative foreign currency options used as hedging instrument Interest accrued Prepaid arrangement fee for loans

62

Margin on letters of credit Other receivables- Considered goods Others

Advances, Deposits, prepayments and other receivables: The amount of advances, deposits, prepayments and other receivables in the first year 2004 was Rs.73583 and it becomes Rs.46041 in the year 2005 with decrement of Rs.27542 The amount of advances, deposits, prepayments and other receivables in the year 2005 was Rs.46041 and it becomes Rs.70340 in the year 2006 with decrement of Rs.24299 The amount of advances, deposits, prepayments and other receivables in the year 2006 was Rs.70340 and it becomes Rs.858758 in the year 2007 with increment of Rs.788418 The amount of cash in hand in the year 2007 was Rs.858758 and it becomes Rs.345567 in the year 2008 with decrement of Rs.513191 And the amount of Advances, Deposits, prepayments and other receivables in the final year 2008 is Rs.345567 The amount of advances, deposits, prepayments and other receivables in the first year 2004 was 1.24% and it becomes 0.74% in the year 2005 with decrement of 0.50% The amount of advances, deposits, prepayments and other receivables in the year 2005 was 0.74% and it becomes 1.13% in the year 2006 with decrement of 0.39% The amount of advances, deposits, prepayments and other receivables in the year 2006 was 1.13% and it becomes 13.42% in the year 2007 with increment of 12.29% The amount of cash in hand in the year 2007 was 13.42% and it becomes 2.77% in the year 2008 with decrement of 10.65% And the amount of Advances, Deposits, prepayments and other receivables in the final year 2008 is 2.77%

63

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 TRADE DEBTS Considered goods Considered doubtful Secure-considered goods Provision for doubtful debts

0.76% 0.38% 0.03% 0.38% -0.03%

1.72% 0.38% 0.03% 1.35% -0.03%

2007 0.41% 0.41% 0.03% 0.00% -0.03%

Vertical analysis B-S

2008 0.31% 0.12% 0.13% 0.18% -0.13%

TRADE DEBTS

2.00%

Unsecured

Percentage

1.50% Considered goods

1.00%

Considered doubtful

0.50% 0.00% -0.50%

2004

2005

2006

2007

2008

Secure-considered goods Less: Provision for doubtful debts

Years

TRADE DEBT The amount of trade debts in the first year 2004 was Rs.44789 and it becomes Rs.107231 in the year 2005 with decrement of Rs.62442 The amount of trade debts in the first year 2005 was Rs.107231 and it becomes Rs.25475 in the year 2006 with increment of Rs.81756 The amount of trade debts in the first year 2006 was Rs.25475 and it becomes Rs.19558 in the year 2007 with decrement of Rs.5917 The amount of trade debts in the first year 2007 was Rs.19558 and it becomes Rs.26927 in the year 2008 with increment of Rs.7369 And the amount of trade debts in the final year 2008 is Rs.26927

64

0.22% 0.00% 0.04% 0.22% -0.04%

The amount of trade debts in the first year 2004 was 0.76% and it becomes 1.72% in the year 2005 with increment of 0.96% The amount of trade debts in the first year 2005 was 1.72% and it becomes 0.41% in the year 2006 with decrement of 1.31% The amount of trade debts in the first year 2006 was 0.41% and it becomes 0.31% in the year 2007 with decrement of 0.10 The amount of trade debts in the first year 2007 was 0.31% and it becomes 0.22% in the year 2008 with increment of 0.09% And the amount of trade debts in the final year 2008 is 0.22%

Considered goods The amount of considered goods in the first year 2004 was Rs.22266 and it becomes Rs.23454 in the year 2005 with increment of Rs.1188 The amount of considered goods in the year 2005 was Rs.23454 and it becomes Rs.25475 in the year 2006 with increment of Rs.2021 The amount of considered goods in the year 2006 was Rs.25475 and it becomes Rs.7769 in the year 2007 with decrement of Rs.17706 The amount of considered goods in the year 2007 was Rs.7769 and it becomes Rs.0 in the year 2008 And the amount of considered goods in the final year 2008 is Rs.0

The amount of considered goods in the first year 2004 was 0.38% and it becomes 0.38% in the year 2005 The amount of considered goods in the year 2005 was 0.38% and it becomes 0.41% in the year 2006 with increment of 0.03% The amount of considered goods in the year 2006 was 0.41% and it becomes 0.12% in the year 2007 with decrement of 0.29% The amount of considered goods in the year 2007 was 0.12% and it becomes 0.00% in the year 2008 And the amount of considered goods in the final year 2008 is 0.00%

65

Considered doubtful The amount of considered doubtful in the first year 2004 was Rs.1567 and it becomes Rs.1567 in the year 2005 and 2006. The amount of considered doubtful in the year 2006 was Rs.1567 and it becomes Rs.8348 in the year 2007 with increment of Rs.6781 The amount of considered doubtful in the year 2007 was Rs.8348 and it becomes Rs.4848 in the year 2008 with decrement of Rs.3500 And the amount of considered doubtful in the final year 2008 is Rs.4848

The amount of considered doubtful in the year 2004, 2005 and 2006 was 0.03% and it becomes 0.13% in the year 2007 with increment of 0.10% The amount of considered doubtful in the year 2007 was 0.13% and it becomes 0.04% in the year 2008 with decrement of 0.09 And the amount of considered doubtful in the final year 2008 is 0.04%

Secure-considered goods The amount of secure-considered goods in the first year 2004 was Rs.22523 and it becomes Rs.83777 in the year 2005 with increment of Rs.61254. The amount of secure-considered goods in the year 2005 was Rs.83777 and it becomes Rs.0 in the year 2006. The amount of secure-considered goods in the year 2007 was Rs.11789 and it becomes Rs.26927 in the year 2008 with increment of Rs.15138. And the amount of secure-considered goods in the final year 2008 is Rs.26927.

The amount of secure-considered goods in the first year 2004 was 0.38% and it becomes 1.35% in the year 2005 with increment of 0.97% The amount of secure-considered goods in the year 2005 was 1.35% and it becomes 0.00% in the year 2006.

66

The amount of secure-considered goods in the year 2007 was 0.18% and it becomes 0.22% in the year 2008 with increment of 0.04% And the amount of secure-considered goods in the final year 2008 is 0.22%

Provision for doubtful debts The amount of provision for doubtful debts in the first year 2004 was Rs.1567 and it becomes Rs.1567 in the year 2005 and 2006. The amount of provision for doubtful debts in the year 2007 was Rs.8348 and it becomes Rs.4848 in the year 2008 with decrement of Rs.3500. And the amount of provision for doubtful debts in the final year 2008 is Rs.4848.

The amount of provision for doubtful debts in the first year 2004 was 0.03% and it becomes 0.13% in the year 2005, 2006 and 2007. The amount of provision for doubtful debts in the year 2007 was 0.13% and it becomes 0.04% in the year 2008 with decrement of 0.09% And the amount of provision for doubtful debts in the final year 2008 is 0.04%

67

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 STOCK IN TRADE Raw and packing material Work in process Finished goods

1.04% 0.26% 0.47% 0.31%

0.90% 0.30% 0.19% 0.42%

2.34% 0.45% 1.51% 0.38%

2007

2008

2.86% 0.37% 1.80% 0.69%

1.85% 0.25% 1.22% 0.37%

Vertical analysis B-S

Percentage

3.50% 3.00% 2.50%

STOCK IN TRADE

2.00% 1.50%

Raw and packing material

1.00% 0.50%

Finished goods

Work in process

0.00% 2004

2005

2006

2007

2008

Years

STOCK IN TRADE The amount of stock in trade in the first year 2004 was Rs.61600 and it becomes Rs.55931 in the year 2005 with decrement of Rs.5669 The amount of stock in trade in the year 2005 was Rs.55931 and it becomes Rs.145090 in the year 2006 with increment of Rs.89159. The amount of stock in trade in the year 2006 was Rs.145090 and it becomes Rs.183309 in the year 2007 with increment of Rs.38219. The amount of stock in trade in the year 2007 was Rs.183309 and it becomes Rs.230089 in the year 2008 with increment of Rs.46780. And the amount of stock in trade in the final year 2008 is Rs.230089.

68

The amount of stock in trade in the first year 2004 was 1.04% % and it becomes 0.90% in the year 2005 with decrement of 0.14% The amount of stock in trade in the year 2005 was 0.90% and it becomes 2.34% in the year 2006 with increment of 1.44% The amount of stock in trade in the year 2006 was 2.34% and it becomes 2.86% in the year 2007 with increment of 0.52% The amount of stock in trade in the year 2007 was 2.86% and it becomes 1.85% in the year 2008 with decrement of 1.01% And the amount of stock in trade in the final year 2008 is 1.85%

Raw and packing material The amount of raw and packing material in the first year 2004 was Rs.15224 and it becomes Rs.18469 in the year 2005 with increment of Rs.3245 The amount of raw and packing material in the year 2005 was Rs.18469 and it becomes Rs.28012 in the year 2006 with increment of Rs.9543 The amount of raw and packing material in the year 2006 was Rs.28012 and it becomes Rs.23931 in the year 2007 with decrement of Rs.4081 The amount of raw and packing material in the year 2007 was Rs.23931 and it becomes Rs.31271 in the year 2008 with increment of Rs.7340 And the amount of raw and packing material in the final year 2008 is Rs.31271

The amount of raw and packing material in the first year 2004 was 0.26% and it becomes 0.30% in the year 2005 with increment of 0.04% The amount of raw and packing material in the year 2005 was 0.30% and it becomes 0.45% in the year 2006 with increment of 0.15% The amount of raw and packing material in the year 2006 was 0.45% and it becomes 0.37% in the year 2007 with decrement of 0.08% The amount of raw and packing material in the year 2007 was 0.37% and it becomes 0.25% in the year 2008 with decrement of 0.12% And the amount of raw and packing material in the final year 2008 is 0.25%

69

Work in process The amount of work in process in the first year 2004 was Rs.27761 and it becomes Rs.11624 in the year 2005 with decrement of Rs.16137 The amount of work in process in the year 2005 was Rs.11624 and it becomes Rs.93671 in the year 2006 with increment of Rs.82047. The amount of work in process in the year 2006 was Rs.93671 and it becomes Rs.115221 in the year 2007 with increment of Rs.21550. The amount of work in process in the year 2007 was Rs.115221 and it becomes Rs.152529 in the year 2008 with increment of Rs.37308. And the amount of work in process in the final year 2008 is Rs.152529

The amount of work in process in the first year 2004 was 0.47% and it becomes 0.19% in the year 2005 with decrement of 0.28% The amount of work in process in the year 2005 was 0.19% and it becomes 1.51% in the year 2006 with increment of 1.32% The amount of work in process in the year 2006 was 1.51% and it becomes 1.80% in the year 2007 with increment of 0.29% The amount of work in process in the year 2007 was 1.80% and it becomes 1.22% in the year 2008 with decrement of 0.58% And the amount of work in process in the final year 2008 is 1.22%

Finished goods The amount of finished goods in the first year 2004 was Rs.18615 and it becomes Rs.25838 in the year 2005 with increment of Rs.7223. The amount of finished goods in the year 2005 was Rs.25838 and it becomes Rs.23407 in the year 2006 with decrement of Rs.2431.

70

The amount of finished goods in the year 2006 was Rs.23407 and it becomes Rs.44157 in the year 2007 with increment of Rs.20750. The amount of finished goods in the year 2007 was Rs.44157 and it becomes Rs.46289 in the year 2008 with increment of Rs.2132. And the amount of finished goods in the final year 2008 is Rs.46289. The amount of finished goods in the first year 2004 was 0.31% and it becomes 0.42% in the year 2005 with increment of 0.11% The amount of finished goods in the year 2005 was 0.42% and it becomes 0.38% in the year 2006 with decrement of 0.04% The amount of finished goods in the year 2006 was 0.38% and it becomes 0.69% in the year 2007 with increment of 0.31% The amount of finished goods in the year 2007 was 0.69% and it becomes 0.37% in the year 2008 with decrement of 0.32% And the amount of finished goods in the final year 2008 is 0.37%

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools

3.34% 1.22% 2.00% 0.12%

5.79% 1.73% 3.93% 0.13%

71

2006

2007

2008

7.92% 3.20% 4.52% 0.20%

7.32% 0.97% 6.16% 0.20%

7.29% 3.34% 3.84% 0.11%

Vertical analysis B-S

Percentage

10.00% STORES, SPARES AND LOOSE TOOLS

8.00% 6.00%

Stores

4.00% Spares

2.00% 0.00% 2004

2005

2006

2007

2008

Loose tools

Years

STORES, SPARES AND LOOSE TOOLS The amount of stores, spares and loose tools in the first year 2004 was Rs.197400 and it becomes Rs.360452 in the year 2005 with increment of Rs.163052. The amount of stores, spares and loose tools in the year 2005 was Rs.360452 and it becomes Rs.490887 in the year 2006 with increment of Rs.130435. The amount of stores, spares and loose tools in the year 2006 was Rs.490887 and it becomes Rs.468769 in the year 2007 with decrement of Rs.22118. The amount of stores, spares and loose tools in the year 2007 was Rs.468769 and it becomes Rs.907591 in the year 2008 with increment of Rs.438822. And the amount of stores, spares and loose tools in the final year 2008 is Rs.907591.

The amount of stores, spares and loose tools in the first year 2004 was 3.34% and it becomes 5.79% in the year 2005 with increment of 2.45% The amount of stores, spares and loose tools in the year 2005 was 5.79% and it becomes 7.92% in the year 2006 with increment of 2.13% The amount of stores, spares and loose tools in the year 2006 was 7.92% and it becomes 7.32% in the year 2007 with decrement of 0.06% The amount of stores, spares and loose tools in the year 2007 was 7.32% and it becomes 7.29% in the year 2008 with decrement of 0.03% And the amount of stores, spares and loose tools in the final year 2008 is 7.29%

72

Stores The amount of stores in the first year 2004 was Rs.71837 and it becomes Rs.107633 in the year 2005 with increment of Rs.35796. The amount of stores in the year 2005 was Rs.107633 and it becomes Rs.198485 in the year 2006 with increment of Rs.90852. The amount of stores in the year 2006 was Rs.198485 and it becomes Rs.61997 in the year 2007 with decrement of Rs.136488. The amount of stores in the year 2007 was Rs.61997 and it becomes Rs.415358 in the year 2008 with increment of Rs.353361. And the amount of stores in the final year 2008 is Rs.415358.

The amount of stores in the first year 2004 was 1.22% and it becomes 1.73% in the year 2005 with increment of 0.51% The amount of stores in the year 2005 was 1.73% and it becomes 3.20% in the year 2006 with increment of 1.47% The amount of stores in the year 2006 was 3.20% and it becomes 0.97% in the year 2007 with decrement of 2.23% The amount of stores in the year 2007 was 0.97% and it becomes 3.34% in the year 2008 with increment of 2.37% And the amount of stores in the final year 2008 is 3.34%

Spares The amount of spares in the first year 2004 was Rs.118324 and it becomes Rs.244514 in the year 2005 with increment of Rs.126190. The amount of spares in the year 2005 was Rs.244514 and it becomes Rs.280183 in the year 2006 with increment of Rs.35669. The amount of spares in the year 2006 was Rs.280183 and it becomes Rs.394046 in the year 2007 with increment of Rs.113863. The amount of spares in the year 2007 was Rs.394046 and it becomes Rs.478579 in the year 2008 with increment of Rs.84533. And the amount of spares in the final year 2008 is Rs.478579. 73

The amount of spares in the first year 2004 was 2.00% and it becomes 3.93%in the year 2005 with increment of 1.93% The amount of spares in the year 2005 was 3.93% and it becomes 4.52% in the year 2006 with increment of 0.59% The amount of spares in the year 2006 was 4.52% and it becomes 6.16% in the year 2007 with increment of 1.64% The amount of spares in the year 2007 was 6.16% and it becomes 3.84% in the year 2008 with decrement of 2.32% And the amount of spares in the final year 2008 is 3.84%

Loose tools The amount of loose tools in the first year 2004 was Rs.7239 and it becomes Rs.8305 in the year 2005 with increment of Rs.1066. The amount of loose tools in the first year 2005 was Rs.8305 and it becomes Rs.12219 in the year 2006 with increment of Rs.3914. The amount of loose tools in the first year 2006 was Rs.12219 and it becomes Rs.12726 in the year 2007 with increment of Rs.507. The amount of loose tools in the first year 2007 was Rs.12726 and it becomes Rs.13654 in the year 2008 with increment of Rs.928. And the amount of spares in the final year 2008 is Rs.13654.

The amount of loose tools in the first year 2004 was 0.12% and it becomes 0.13% in the year 2005 with increment of 0.01% The amount of loose tools in the first year 2005 was 0.13% and it becomes 0.20% in the year 2006 with increment of 0.07% The amount of loose tools in the first year 2006 was 0.20% and it becomes 0.20% in the year 2007 The amount of loose tools in the first year 2007 was 0.20% and it becomes 0.11% in the year 2008 with decrement of 0.09% And the amount of spares in the final year 2008 is 0.11% 74

LONG TERM DEPOSITS Islamabad Electric Supply Company Limited Sui Northern Gas Pipelines Limited

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 0.62% 0.75% 0.75%

2007 0.73%

2008 0.37%

0.37%

0.35%

0.35%

0.34%

0.17%

0.25%

0.40%

0.40%

0.39%

0.20%

Vertical analysis B-S

Percentage

0.80% LONG TERM DEPOSITS

0.60% 0.40%

Islamabad Electric Supply Company Limited

0.20% 0.00% 2004

2005

2006

2007

2008

Sui Northern Gas Pipelines Limited

Years

LONG TERM DEPOSITS The amount of long term deposits in the first year 2004 was Rs.36600 and it becomes Rs.46611 in the year 2005, 2006, 2007 and 2008 with decrement of Rs.10011.

The amount of long term deposits in the first year 2004 was 0.62% and it becomes 0.75% in the year 2005, 2006 with increment of 0.13% The amount of long term deposits in the first year 2006 was 0.75% and it becomes 0.73% in the year 2007 with decrement of 0.02% The amount of long term deposits in the first year 2007 was 0.73% and it becomes 0.37% in the year 2007 with decrement of 0.36%

Islamabad Electric Supply Company Limited The amount of Islamabad Electric Supply Company Limited in the year 2004, 2005, 2006, 2007 and 2008 was Rs.21600.

75

The amount of long term deposits in the first year 2004 was 0.37% and it becomes 0.35% in the year 2005, 2006 with decrement of 0.02% The amount of long term deposits in the first year 2006 was 0.35% and it becomes 0.34% in the year 2007 with decrement of 0.01% The amount of long term deposits in the first year 2007 was 0.34% and it becomes 0.17% in the year 2008 with decrement of 0.17%

Sui Northern Gas Pipelines Limited The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was Rs.15000 and it becomes Rs.25011 in the year 2005, 2006, 2007 and 2008 with increment of Rs.10011. The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was 0.25% and it becomes 0.40% in the year 2005, 2006 with increment of 0.15% The amount of Sui Northern Gas Pipelines Limited in the first year 2006 was 0.40% and it becomes 0.39% in the year 2007 with decrement of 0.01% The amount of Sui Northern Gas Pipelines Limited in the first year 2007 was 0.39% and it becomes 0.20% in the year 2008 with decrement of 0.19%

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 LONG TERM ADVANCES Considered goods Sui Northern Gas Pipelines Limited Less: Amount receivables within 12 months shown under current assets

2006

2007

2008

0.00% 0.00%

0.14% 0.00%

0.15% 0.00%

0.13% 0.14%

0.06% 0.07%

0.00%

0.00%

0.00%

-0.01%

-0.01%

76

Vertical analysis B-S

Percentage

0.20% 0.15%

Sui Northern Gas Pipelines Limited

0.10% 0.05% 0.00% -0.05%

LONG TERM ADVANCES Considered goods

2004

2005

2006

2007

2008

Years

Less: Amount receivables within 12 months shown under current assets

LONG TERM ADVANCES - Considered goods The amount of LONG TERM ADVANCES - Considered goods in the first year 2004 was Rs.0 and it becomes Rs.9000 in the year 2005 and 2006 with increment of Rs.9000. The amount of LONG TERM ADVANCES - Considered goods in the year 2007 was Rs.8100 and it becomes Rs.7200 in the year 2008 with decrement of Rs.900. And the amount of long term advances-considered goods in the final year 2008 is Rs.7200

The amount of LONG TERM ADVANCES - Considered goods in the year 2004 was 0.00% and it becomes 0.14% in 2005 with increment of 0.14% The amount of LONG TERM ADVANCES - Considered goods in the year 2005 was 0.14% and it becomes 0.15% in the year 2006 with increment of 0.01% And the amount of long term advances-considered goods in the year 2006 was 0.15% and it becomes 0.13% in 2007 with decrement of 0.02% And the amount of long term advances-considered goods in the year 2007 was 0.13% and it becomes 0.06% in 2008 with decrement of 0.07%

Sui Northern Gas Pipelines Limited The amount of Sui Northern Gas Pipelines Limited in the year 2004, 2005 and 2006 was Rs.0 and it becomes Rs.9000 in the year 2007 with increment of Rs.9000. And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is Rs.8100.

77

The amount of Sui Northern Gas Pipelines Limited in the year 2007 was 0.14% and it becomes 0.07% in the year 2008 with decrement of 0.07% And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is 0.07%

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 FIXED ASSETS - Tangible: Property, Plant and equipment

80.02% 80.02%

74.85% 74.85%

73.62% 73.62%

2007

2008

68.62% 68.62%

57.06% 57.06%

Vertical analysis B-S

Percentage

100.00% 80.00% 60.00%

FIXED ASSETS - Tangible:

40.00%

Property, Plant and equipment

20.00% 0.00% 2004

2005

2006

2007

2008

Years

FIXED ASSETS – Tangible The amount of fixed assets-tangible in the first year 2004 was Rs.4729254 and it becomes Rs.4658272 in the year 2005 with decrement of Rs.70982. The amount of fixed assets-tangible in the year 2005 was Rs.4658272 and it becomes Rs.4563115 in the year 2006 with decrement of Rs.95157. The amount of fixed assets-tangible in the year 2006 was Rs.4563115 and it becomes Rs.4392450 in the year 2007 with decrement of Rs.170665. The amount of fixed assets-tangible in the year 2007 was Rs.4392450 and it becomes Rs.7106599 in the year 2008 with increment of Rs.2714149.

78

And the amount of fixed assets-tangible in the final year 2008 is Rs.7106599.

The amount of fixed assets-tangible in the first year 2004 was 80.02% and it becomes 74.85% in the year 2005 with decrement of 5.17% The amount of fixed assets-tangible in the year 2005 was 74.85% and it becomes 73.62% in the year 2006 with decrement of 1.23% The amount of fixed assets-tangible in the year 2006 was 73.62% and it becomes 68.62% in the year 2007 with decrement of 0.05% The amount of fixed assets-tangible in the year 2007 was 68.62% and it becomes 57.06% in the year 2008 with decrement of 11.56% And the amount of fixed assets-tangible in the final year 2008 is 57.06%

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 Total Assets

100.00%

100.00%

100.00%

2007

2008

100.00%

Vertical Analysis 120.00%

Percentages

100.00% 80.00% 60.00%

Total Assets

40.00% 20.00% 0.00% 2004

2005

2006 Years

79

2007

2008

100.00%

Total Assets The amount of total assets in the first year 2004 was Rs.5910353 and it becomes Rs.6223788 in the year 2005 with increment of Rs.313435. The amount of total assets in the year 2005 was Rs.6223788 and it becomes Rs.6198108 in the year 2006 with decrement of Rs.25680. The amount of total assets in the year 2006 was Rs.6198108 and it becomes Rs.6400688 in the year 2007 with increment of Rs.202580. The amount of total assets in the year 2007 was Rs.6400688 and it becomes Rs.12454493 in the year 2008 with increment of Rs.6053805. And the amount of total assets in the final year 2008 is Rs.12454493

The amount of total assets in the years 2004, 2005, 2006, 2007 and 2008 was 100.00%.

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 Trade and other payables: Creditors Accrued liabilities Retention money Security deposits Advances from customers Workers' (Profit) Participation Fund Workers' Welfare fund

4.61% 0.77% 1.07% 0.18% 0.43% 0.39% 0.00% 0.00%

4.43% 0.74% 1.08% 0.17% 0.47% 0.68% 0.64% 0.00%

80

6.79% 0.96% 1.02% 0.21% 0.61% 0.95% 1.51% 0.00%

2007 7.32% 1.28% 1.86% 0.19% 0.61% 1.06% 0.65% 0.25%

2008 3.96% 0.53% 1.40% 0.12% 0.30% 0.33% 0.20% 0.20%

Vertical analysis B-S 8.00% Trade and other payables:

7.00%

Creditors

Percentage

6.00%

Accrued liabilities

5.00%

Retention money

4.00%

Sesurity deposits

3.00%

Advances from customers

2.00%

Workers' (Profit) Participation Fund Workers' Welfare fund

1.00% 0.00% 2004

2005

2006

2007

2008

Sales tax payable- net Excise duty payable

Years

Other liabilities Compensated absences Unclaimed dividend

Trade and other payables

The amount of trade and other payables in the first year 2004 was Rs.272476 and it becomes Rs.275718 in the year 2005 with increment of Rs.3242. The amount of trade and other payables in the year 2005 was Rs.275718 and it becomes Rs.421074 in the year 2006 with increment of Rs.145356. The amount of trade and other payables in the year 2006 was Rs.421074 and it becomes Rs.468447 in the year 2007 with increment of Rs.47373. The amount of trade and other payables in the year 2007 was Rs.468447 and it becomes Rs.493210 in the year 2008 with increment of Rs.24763. And the amount of trade and other payables in the final year 2008 is Rs.493210

The amount of trade and other payables in the first year 2004 was 4.61% and it becomes 4.43% in the year 2005 with decrement of 0.18% The amount of trade and other payables in the year 2005 was 4.43% and it becomes 6.79% in the year 2006 with increment of 2.36% The amount of trade and other payables in the year 2006 was 6.79% and it becomes 7.32% in the year 2007 with increment of 0.53%

81

The amount of trade and other payables in the year 2007 was 7.32% and it becomes 3.96% in the year 2008 with decrement of 3.36% And the amount of trade and other payables in the final year 2008 is 3.96%

Creditors The amount of creditors in the first year 2004 was Rs.45651 and it becomes Rs.45969 in the year 2005 with increment of Rs.318. The amount of creditors in the year 2005 was Rs.45969 and it becomes Rs.59763 in the year 2006 with increment of Rs.13794. The amount of creditors in the year 2006 was Rs.59763 and it becomes Rs.81766 in the year 2007 with increment of Rs.22003. The amount of creditors in the year 2007 was Rs.81766 and it becomes Rs.65997 in the year 2008 with decrement of Rs.15769. And the amount of creditors in the final year 2008 is Rs.65997. The amount of creditors in the first year 2004 was 0.77% and it becomes 0.74% in the year 2005 with decrement of 0.03% The amount of creditors in the year 2005 was 0.74% and it becomes 0.96% in the year 2006 with increment of 0.22% The amount of creditors in the year 2006 was 0.96% and it becomes 1.28% in the year 2007 with increment of 0.32% The amount of creditors in the year 2007 was 1.28% and it becomes 0.53% in the year 2008 with decrement of 0.75% And the amount of creditors in the final year 2008 is 0.53%

Accrued liabilities The amount of accrued liabilities in the first year 2004 was Rs.63425 and it becomes Rs.67119 in the year 2005 with increment of Rs.3694. The amount of accrued liabilities in the year 2005 was Rs.67119 and it becomes Rs.63470 in the year 2006 with decrement of Rs.3649.

82

The amount of accrued liabilities in the year 2006 was Rs.63470 and it becomes Rs.118828 in the year 2007 with increment of Rs.55358. The amount of accrued liabilities in the year 2007 was Rs.118828 and it becomes Rs.174692 in the year 2008 with increment of Rs.55864. And the amount of accrued liabilities in the final year 2008 is Rs.174692

The amount of accrued liabilities in the first year 2004 was 1.07% and it becomes 1.08% in the year 2005 with increment of 0.01% The amount of accrued liabilities in the year 2005 was 1.08% and it becomes 1.02% in the year 2006 with decrement of 0.06% The amount of accrued liabilities in the year 2006 was 1.02% and it becomes 1.86% in the year 2007 with increment of 0.84% The amount of accrued liabilities in the year 2007 was 1.86% and it becomes 1.40% in the year 2008 with decrement of 0.46% And the amount of accrued liabilities in the final year 2008 is 1.40%

Retention money The amount of retention money in the first year 2004 was Rs.10819 and it becomes Rs.10533 in the year 2005 with decrement of Rs.286. The amount of retention money in the year 2005 was Rs.10533 and it becomes Rs.12843 in the year 2006 with increment of Rs.2310. The amount of retention money in the year 2006 was Rs.12843 and it becomes Rs.11986 in the year 2007 with decrement of Rs.857. The amount of retention money in the year 2007 was Rs.11986 and it becomes Rs.15517 in the year 2008 with increment of Rs.3531. And the amount of retention money in the final year 2008 is Rs.15517

The amount of retention money in the first year 2004 was 0.18% and it becomes 0.17% in the year 2005 with decrement of 0.01% The amount of retention money in the year 2005 was 0.17% and it becomes 0.21% in the year 2006 with increment of 0.04% 83

The amount of retention money in the year 2006 was 0.21% and it becomes 0.19% in the year 2007 with decrement of 0.02% The amount of retention money in the year 2007 was 0.19% and it becomes 0.12% in the year 2008 with decrement of 0.07% And the amount of retention money in the final year 2008 is 0.12%

Security deposits The amount of security deposits in the first year 2004 was Rs.25462 and it becomes Rs.28982 in the year 2005 with increment of Rs.3520. The amount of security deposits in the year 2005 was Rs.28982 and it becomes Rs.37986 in the year 2006 with increment of Rs.9004. The amount of security deposits in the year 2006 was Rs.37986 and it becomes Rs.39051 in the year 2007 with increment of Rs.1065. The amount of security deposits in the year 2007 was Rs.39051 and it becomes Rs.36916 in the year 2008 with decrement of Rs.2135. And the amount of security deposits in the final year 2008 is Rs.36916.

The amount of security deposits in the first year 2004 was 0.43% and it becomes 0.47% in the year 2005 with increment of 0.04% The amount of security deposits in the year 2005 was 0.47% and it becomes 0.61% in the year 2006 with increment of 0.14% The amount of security deposits in the year 2006 was 0.61% and it becomes 0.61% in the year 2007. The amount of security deposits in the year 2007 was 0.61% and it becomes 0.30% in the year 2008 with decrement of 0.31% And the amount of security deposits in the final year 2008 is 0.30%

Advances from customers The amount of advances from customers in the first year 2004 was Rs.23121 and it becomes Rs.42444 in the year 2005 with increment of Rs.19323.

84

The amount of advances from customers in the year 2005 was Rs.42444 and it becomes Rs.58744 in the year 2006 with increment of Rs.16300. The amount of advances from customers in the year 2006 was Rs.58744 and it becomes Rs.67770 in the year 2007 with increment of Rs.9026. The amount of advances from customers in the year 2007 was Rs.67770 and it becomes Rs.41344 in the year 2008 with decrement of Rs.26426. And the amount of advances from customers in the final year 2008 is Rs.41344.

The amount of advances from customers in the first year 2004 was 0.39% and it becomes 0.68% in the year 2005 with increment of 0.29% The amount of advances from customers in the year 2005 was 0.39% and it becomes 0.95% in the year 2006 with increment of 0.56% The amount of advances from customers in the year 2006 was 0.95% and it becomes 1.06% in the year 2007 with increment of 0.11% The amount of advances from customers in the year 2007 was 1.06% and it becomes 0.33% in the year 2008 with decrement of 0.73% And the amount of advances from customers in the final year 2008 is 0.33%

Workers' (Profit) Participation Fund The amount of Workers' (Profit) Participation Fund in the first year 2004 was Rs.0 and it becomes Rs.39949 in the year 2005 with increment of Rs.39949. The amount of Workers' (Profit) Participation Fund in the year 2005 was Rs.39949 and it becomes Rs.93562 in the year 2006 with increment of Rs.53613. The amount of Workers' (Profit) Participation Fund in the year 2006 was Rs.93562 and it becomes Rs.41483 in the year 2007 with decrement of Rs.52079. The amount of Workers' (Profit) Participation Fund in the year 2007 was Rs.41483 and it becomes Rs.24413 in the year 2008 with decrement of Rs.17070. And the amount of Workers' (Profit) Participation Fund in the final year 2008 is Rs.24413.

85

The amount of Workers' (Profit) Participation Fund in the year 2005 was 0.64% and it becomes 1.51% in the year 2006 with increment of 0.87% The amount of Workers' (Profit) Participation Fund in the year 2006 was 1.51% and it becomes 0.65% in the year 2007 with decrement of 0.86% The amount of Workers' (Profit) Participation Fund in the year 2007 was 0.65% and it becomes 0.20% in the year 2008 with decrement of 0.45% And the amount of Workers' (Profit) Participation Fund in the final year 2008 is 0.20%

Workers' Welfare fund The amount of Workers' Welfare fund in the first three year 2004, 2005 and 2006 was Rs.0 and it becomes Rs.16085 in the year 2007 with increment of Rs.16085. The amount of Workers' Welfare fund in the year 2007 was Rs.16085 and it becomes Rs.25362 in the year 2008 with increment of Rs.9277. The amount of Workers' Welfare fund in the year 2007 was 0.25% and it becomes 0.20% in the year 2008 with decrement of 0.05% And the amount of Workers' Welfare fund in the final year 2008 is 0.20%

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 Habib Bank Limited MCB Bank Limited United Bank Limited Bank Al Falah Limited NIB Bank Limited PICIC Commercial Bank Limited

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

14.73% 14.73% 7.36% 7.36% 0.00% 4.42%

86

9.66% 9.66% 4.83% 4.83% 0.00% 2.90%

2007 6.75% 6.75% 3.37% 3.37% 2.02% 0.00%

2008 2.13% 2.13% 1.06% 1.06% 0.64% 0.00%

Long term financing:

Percentage

Vertical analysis B-S 70.00%

Loans from banking companies Secured:

60.00%

Habib Bank Limited

50.00% MCB Bank Limited

40.00% 30.00%

United Bank Limited

20.00% 10.00%

Bank Al Falah Limited

0.00% 2004

2005

2006

2007

2008

Years

NIB Bank Limited PICIC Commercial Bank Limited

Habib Bank Limited The amount of Habib Bank Limited in the first year 2005 was Rs.916667 and it becomes Rs.598485 in the year 2006 with decrement of Rs.318182 The amount of Habib Bank Limited in the year 2006 was Rs.598485 and it becomes Rs.431818 in the year 2007 with decrement of Rs.166667 The amount of Habib Bank Limited in the year 2007 was Rs.431818 and it becomes Rs.265152 in the year 2008 with decrement of Rs.166666 And the amount of Habib Bank Limited in the final year 2008 is Rs.265152. The amount of Habib Bank Limited in the first year 2005 was 14.73% and it becomes 9.66% in the year 2006 with decrement of 5.07% The amount of Habib Bank Limited in the year 2006 was 9.66% and it becomes 6.75% in the year 2007 with decrement of 2.91% The amount of Habib Bank Limited in the year 2007 was 6.75% and it becomes 2.13% in the year 2008 with decrement of 4.62% And the amount of Habib Bank Limited in the final year 2008 is 2.13%

MCB Bank Limited The amount of MCB Bank Limited in the first year 2005 was Rs.916667 and it becomes Rs.598485 in the year 2006 with decrement of Rs.318182

87

The amount of MCB Bank Limited in the year 2006 was Rs.598485 and it becomes Rs.431818 in the year 2007 with decrement of Rs.166667 The amount of MCB Bank Limited in the year 2007 was Rs.431818 and it becomes Rs.265152 in the year 2008 with decrement of Rs.166666 And the amount of MCB Bank Limited in the final year 2008 is Rs.265152.

The amount of MCB Bank Limited in the first year 2005 was 14.73% and it becomes 9.66% in the year 2006 with decrement of 5.07% The amount of MCB Bank Limited in the year 2006 was 9.66% and it becomes 6.75% in the year 2007 with decrement of 2.91% The amount of MCB Bank Limited in the year 2007 was 6.75% and it becomes 2.13% in the year 2008 with decrement of 4.62% And the amount of MCB Bank Limited in the final year 2008 is 2.13%

United Bank Limited The amount of United Bank Limited in the first year 2005 was Rs.458333 and it becomes Rs.299243 in the year 2006 with decrement of Rs.159090. The amount of United Bank Limited in the year 2006 was 299243 and it becomes Rs.215909 in the year 2007 with decrement of Rs.83334. The amount of United Bank Limited in the year 2007 was Rs.215909 and it becomes Rs.132576 in the year 2008 with decrement of Rs.83333. And the amount of United Bank Limited in the final year 2008 is Rs.132576

The amount of United Bank Limited in the first year 2005 was 7.36% and it becomes 4.83% in the year 2006 with decrement of 2.53% The amount of United Bank Limited in the year 2006 was 4.83% and it becomes 3.37% in the year 2007 with decrement of 1.46% The amount of United Bank Limited in the year 2007 was 3.37% and it becomes 1.06% in the year 2008 with decrement of 2.31% And the amount of United Bank Limited in the final year 2008 is 1.06%

88

Bank Al Falah Limited The amount of Bank Al Falah Limited in the first year 2005 was Rs.458333 and it becomes Rs.299243 in the year 2006 with decrement of Rs.159090. The amount of Bank Al Falah Limited in the year 2006 was 299243 and it becomes Rs.215909 in the year 2007 with decrement of Rs.83334. The amount of Bank Al Falah Limited in the year 2007 was Rs.215909 and it becomes Rs.132576 in the year 2008 with decrement of Rs.83333. And the amount of Bank Al Falah Limited in the final year 2008 is Rs.132576

The amount of Bank Al Falah Limited in the first year 2005 was 7.36% and it becomes 4.83% in the year 2006 with decrement of 2.53% The amount of Bank Al Falah Limited in the year 2006 was 4.83% and it becomes 3.37% in the year 2007 with decrement of 1.46% The amount of Bank Al Falah Limited in the year 2007 was 3.37% and it becomes 1.06% in the year 2008 with decrement of 2.31% And the amount of Bank Al Falah Limited in the final year 2008 is 1.06%

NIB Bank Limited The amount of NIB Bank Limited in the year 2007 was Rs.129546 and it becomes Rs.79544 in the year 2008 with decrement of Rs.50002 And the amount of NIB Bank Limited in the final year 2008 is Rs.79544.

The amount of NIB Bank Limited in the year 2007 was 2.02% and it becomes 0.64% in the year 2008 with decrement of 1.38% And the amount of NIB Bank Limited in the final year 2008 is 0.64%

PICIC Commercial Bank Limited The amount of PICIC Commercial Bank Limited in the first year 2005 was Rs.275000 and it becomes Rs.179545 in the year 2006 with decrement of Rs.95455

89

The amount of PICIC Commercial Bank Limited in the year 2006 was Rs.179545 and it becomes 0 in the year 2007 and 2008.

The amount of PICIC Commercial Bank Limited in the first year 2005 was 4.42% and it becomes 2.90% in the year 2006 with decrement of 1.52% The amount of PICIC Commercial Bank Limited in the year 2006 was 2.90% and it becomes 0.00% in the year 2007 and 2008.

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 Loan from related party: Fauji Foundation- Unsecured amount payable within 12 months shown under current liabilities

2007

2008

0.00%

0.80%

0.00%

0.00%

0.00%

0.00%

-8.89%

-8.87%

-8.59%

-4.42%

Vertical analysis B-S 2.00% Loan from related party:

Percentage

0.00% -2.00%

2004

2005

2006

2007

2008 Fauji Foundation- Unsecured

-4.00% -6.00%

Less:amount payable within 12 months shown under current liabilities

-8.00% -10.00% Years

90

Fauji Foundation- Unsecured The amount of Fauji Foundation- Unsecured in the year 2005 was Rs.50000 and it becomes Rs.0 in the years 2006, 2007 and 2008. The amount of Fauji Foundation- Unsecured in the year 2005 was 0.80% and it becomes 0.00% in the years 2006, 2007 and 2008.

Fauji Cement Company Limited Balance Sheet (Vertical Analysis) 2004 2005 2006 Total Liabilities

100.00%

100.00%

100.00%

2007

2008

100.00%

100.00%

Vertical Analysis 120.00%

Percentages

100.00% 80.00% 60.00%

Total Liabilities

40.00% 20.00% 0.00% 2004

2005

2006

2007

2008

Years

Total Liabilities The amount of Total Liabilities in the first year 2004 was Rs.3971219 and it becomes Rs.3774164 in the year 2005 with decrement of Rs.197055 The amount of Total Liabilities in the year 2005 was Rs.3774164 and it becomes Rs.2915492 in the year 2006 with decrement of Rs.858672.

91

The amount of Total Liabilities in the year 2006 was Rs.2915492 and it becomes Rs.2665482 in the year 2007 with decrement of Rs.250010 The amount of Total Liabilities in the year 2007 was Rs.2665482 and it becomes Rs.3170512 in the year 2008 with increment of Rs.505030 And the amount of Total Liabilities in the final year 2008 is Rs.3170512. The amount of Total Liabilities in the first years 2004.2005, 2006, 2007 and 2008 is 100.00%

92

Income Statement (Trend Analysis)

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 100.00% 123.90% 186.66%

Net Sales

2007 150.82%

2008 154.42%

Trend Analysis

Percentages

200.00% 150.00% 100.00%

Net Sales

50.00% 0.00% 2004

2005

2006

2007

2008

Years

Net Sales The amount of Net Sales in the year 2004 was Rs.2296231 and it increases to Rs.2845143 in the year 2005 with an increment of Rs.548912 And the amount of Net Sales in the year 2005 was Rs.2845143 and it increases to Rs.4286138 in the year 2006 with an increment of Rs.1440995 The amount of Net Sales in the year 2006 was Rs.4286138 and it decreases to Rs.3463283 in the year 2007 with and decrement of Rs.822855 The amount of Net Sales in the year 2007 was Rs.3463283 and it increases to Rs.3545902 in the year 2008 with and increment of Rs.82619 And the amount Net Sales in the final year 2008 is Rs.3545902. The amount of Net Sales in the year 2004 was 100.00% .and it increases to 123.90% in the year 2005 with an increment of 23.90%

93

And the amount of Net Sales in the year 2005 was 123.90% and it increases to 186.66% in the year 2006 with an increment of 62.76% The amount of Net Sales in the year 2006 was 186.66% and it decreases to 150.82% in the year 2007 with and decrement of 35.84% The amount of Net Sales in the year 2007 was 150.82% and it increases to 154.42% in the year 2008 with and increment of 3.60% And the amount Net Sales in the final year 2008 is 154.42%

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Cost of sales

100.00%

113.38%

134.69%

2007

2008

152.49%

185.66%

Percentages

Trend Analysis 200.00% 180.00% 160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00%

Cost of sales

2004

2005

2006 Yeas

94

2007

2008

Cost of sales The amount of Cost of sales in the year 2004 was Rs.1555407 and it increases to Rs.1763567 in the year 2005 with an increment of Rs.208160 And the amount of Cost of sales in the year 2005 was Rs.1763567 and it increases to Rs.2095027 in the year 2006 with an increment of Rs.331460. The amount of Cost of sales in the year 2006 was Rs.2095027 and it increases to Rs.2371788 in the year 2007 with and increment of Rs.276761 The amount of Cost of sales in the year 2007 was Rs.2371788 and it increases to Rs.2887790 in the year 2008 with and increment of Rs.516002 And the amount Cost of sales in the final year 2008 is 2887790.

The amount of Cost of sales in the year 2004 was 100.00% .and it increases to 113.38% in the year 2005 with an increment of 13.38% And the amount of Cost of sales in the year 2005 was 113.38% and it increases to 134.69% in the year 2006 with an increment of 21.31% The amount of Cost of sales in the year 2006 was 134.69% and it increases to 152.49% in the year 2007 with and increment of 17.80% The amount of Cost of sales in the year 2007 was 152.49% and it increases to 185.66% in the year 2008 with and increment of 33.17% And the amount Cost of sales in the final year 2008 is 185.66%

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Gross profit

100.00%

146.00%

95

295.77%

2007

2008

147.34%

88.84%

Percentage

Trend Analysis 400.00% 300.00% 200.00% 100.00%

Gross profit

0.00% 2004

2005

2006

2007

2008

Years

Gross profit The amount of Gross Profit in the first year 2004 was Rs.740824 and it becomes Rs.1081576 in the year 2005 with an increment of Rs.340752. The amount of Gross Profit in the year 2005 was Rs.1081576 and it becomes Rs.2191111 in the year 2006 with an increment of Rs.1109535 The amount of Gross Profit in the year 2006 was Rs.2191111 and it becomes Rs.1091495 in the year 2007 with a decrement of Rs.1099616 The amount of Gross Profit in the year 2007 was Rs.1091495 and it becomes Rs.658112 in the year 2008 with decrement of Rs.433383. And the amount of Gross Profit in the final year 2008 is Rs.658112.

The amount of Gross Profit in the first year 2004 was 100.00% and it becomes 146.00% in the year 2005 with an increment of 46.00% The amount of Gross Profit in the year 2005 was 146.00% and it becomes 295.77% in the year 2006 with an increment of 149.77% The amount of Gross Profit in the year 2006 was 295.77% and it becomes 147.34% in the year 2007 with a decrement of 148.43% The amount of Gross Profit in the year 2007 was 147.34% and it becomes 88.84% in the year 2008 with decrement of 58.50% And the amount of Gross Profit in the final year 2008 is 88.84%.

96

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Other income

100.00%

26.24%

101.35%

2007

2008

172.74%

251.67%

Percentage

Trend Analysis 300.00% 200.00%

Other income

100.00% 0.00% 2004

2005

2006

2007

2008

Years

Other income The amount of other income in the first year 2004 was Rs.42744 and it becomes Rs.11216 in the year 2005 with decrement of Rs.31528 The amount of other income in the year 2005 was Rs.11216 and it becomes Rs.43323 in the year 2006 with an increment of Rs.32107 The amount of other income in the year 2006 was Rs.43323 and it becomes Rs.73835 in the year 2007 with increment of Rs.30512 The amount of other income in the year 2007 was Rs.73835 and it becomes Rs.107574 in the year 2008 with increment of Rs.33739 And the amount of other income in the final year 2008 is Rs.107574 The amount of other income in the first year 2004 was 100.00% and it becomes 26.24% in the year 2005 with decrement of 73.76% The amount of other income in the year 2005 was 26.24% and it becomes 101.35% in the year 2006 with an increment of 75.11% The amount of other income in the year 2006 was 101.35% and it becomes 172.74% in the year 2007 with increment of 71.39% 97

The amount of other income in the year 2007 was 172.74% and it becomes 251.67% in the year 2008 with increment of 78.93% And the amount of other income in the final year 2008 is 251.67%

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Distribution cost

100.00%

104.49%

155.24%

2007

2008

199.08%

261.48%

Trend Analysis 300.00%

Percentages

250.00% 200.00% 150.00%

Distribution cost:

100.00% 50.00% 0.00% 2004

2005

2006

2007

2008

Years

Distribution cost The amount of Distribution cost in the first year 2004 was Rs.20416 and it becomes Rs.21333 in the year 2005 with increment of Rs.917 The amount of Distribution cost in the year 2005 was 21333 and it becomes Rs.31694 in the year 2006 with an increment of Rs.10361. The amount of Distribution cost in the year 2006 was Rs.31694 and it becomes Rs.40645 in the year 2007 with increment of Rs.8951.

98

The amount of Distribution cost in the year 2007 was Rs.40645 and it becomes Rs.53383 in the year 2008 with increment of Rs.12738 And the amount of Distribution cost in the final year 2008 is Rs.53383.

The amount of Distribution cost in the first year 2004 was 100.00% and it becomes 104.49% in the year 2005 with increment of 4.49% The amount of Distribution cost in the year 2005 was 104.49% and it becomes 155.24% in the year 2006 with an increment of 50.75% The amount of Distribution cost in the year 2006 was 155.24% and it becomes 199.08% in the year 2007 with increment of 43.84% The amount of Distribution cost in the year 2007 was 199.08% and it becomes 261.48% in the year 2008 with increment of 62.40% And the amount of Distribution cost in the final year 2008 is 261.48%

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Administrative expenses

100.00%

106.97%

168.53%

2007

2008

180.35%

193.49%

Trend Analysis 250.00%

Percentages

200.00% 150.00% Administrative expenses: 100.00% 50.00% 0.00% 2004

2005

2006

2007

Years

99

2008

Administrative expenses The amount of Administrative expenses in the first year 2004 was Rs.39535 and it becomes Rs.42292 in the year 2005 with increment of Rs.2757. The amount of Administrative expenses in the year 2005 was Rs.42292 and it becomes Rs.66627 in the year 2006 with an increment of Rs.24335. The amount of Administrative expenses in the year 2006 was Rs.66627 and it becomes Rs.71302 in the year 2007 with increment of Rs.4675 The amount of Administrative expenses in the year 2007 was Rs.71302 and it becomes Rs.76495 in the year 2008 with increment of Rs.5193. And the amount of Administrative expenses in the final year 2008 is Rs.76495.

The amount of Administrative expenses in the first year 2004 was 100.00% and it becomes 106.97% in the year 2005 with increment of 6.97% The amount of Administrative expenses in the year 2005 was 106.97% and it becomes 168.53% in the year 2006 with an increment of 61.55% The amount of Administrative expenses in the year 2006 was 168.53% and it becomes 180.35% in the year 2007 with increment of 11.82% The amount of Administrative expenses in the year 2007 was 180.35% and it becomes 193.49% in the year 2008 with increment of 13.34% And the amount of Administrative expenses in the final year 2008 is 193.49%

100

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Other Operating expenses

100.00%

7597.19%

17659.85%

2007

2008

10900.19%

6433.40%

Percentages

Trend Analysis 20000.00% 18000.00% 16000.00% 14000.00% 12000.00% 10000.00% 8000.00% 6000.00% 4000.00% 2000.00% 0.00%

Other Operating expenses:

2004

2005

2006

2007

2008

Years

Other Operating expenses The amount of Other Operating expenses in the first year 2004 was Rs.533 and it becomes Rs.40493 in the year 2005 with increment of Rs.39960 The amount of Other Operating expenses in the year 2005 was Rs.40493 and it becomes Rs.94127 in the year 2006 with an increment of Rs.53634 The amount of Other Operating expenses in the year 2006 was Rs.94127 and it becomes Rs.58098 in the year 2007 with decrement of Rs.36029 The amount of Other Operating expenses in the year 2007 was Rs.58098 and it becomes Rs.34290 in the year 2008 with decrement of Rs.23808. And the amount of Other Operating expenses in the final year 2008 is Rs.3429.

The amount of Other Operating expenses in the first year 2004 was 100.00% and it becomes 7597.19% in the year 2005 with increment of 7497.19%

101

The amount of Other Operating expenses in the year 2005 was 7597.19% and it becomes 17659.85% in the year 2006 with an increment of 10062.66% The amount of Other Operating expenses in the year 2006 was 17659.85% and it becomes 10900.19% in the year 2007 with decrement of 6759.66% The amount of Other Operating expenses in the year 2007 was 10900.19% and it becomes 6433.40% in the year 2008 with decrement of 4466.79% And the amount of Other Operating expenses in the final year 2008 is 6433.40%

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Finance Cost

100.00%

112.44%

129.42%

2007

2008

101.41%

71.96%

Trend Analysis 140.00%

Percentages

120.00% 100.00% 80.00%

Finance Cost:

60.00% 40.00% 20.00% 0.00% 2004

2005

2006 Years

102

2007

2008

Finance Cost The amount of Finance Cost in the first year 2004 was Rs.204222 and it becomes Rs.229633 in the year 2005 with increment of Rs.25411 The amount of Finance Cost in the year 2005 was Rs.229633 and it becomes Rs.264296 in the year 2006 with an increment of Rs.34633. The amount of Finance Cost in the year 2006 was Rs.264296 and it becomes Rs.207105 in the year 2007 with decrement of Rs.57191 The amount of Finance Cost in the year 2007 was Rs.207105 and it becomes Rs.146954 in the year 2008 with decrement of Rs.60151. And the amount of Finance Cost in the final year 2008 is Rs.146954

The amount of Finance Cost in the first year 2004 was 100.00% and it becomes 112.44% in the year 2005 with increment of 12.44% The amount of Finance Cost in the year 2005 was 112.44% and it becomes 129.42% in the year 2006 with an increment of 16.68% The amount of Finance Cost in the year 2006 was 129.42% and it becomes 101.41% in the year 2007 with decrement of 28.01% The amount of Finance Cost in the year 2007 was 101.41% and it becomes 71.96% in the year 2008 with decrement of 29.45% And the amount of Finance Cost in the final year 2008 is 71.96%

103

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Net profit before taxation

100.00%

-311.99%

-730.69%

2007

2008

-323.97%

-186.84%

Trend Analysis

Percentage

200.00% 0.00% -200.00%

2004

2005

2006

2007

-400.00%

2008

Net profit before taxation

-600.00% -800.00% Years

Net profit before taxation The amount of Net profit before taxation in the first year 2004 was Rs.-243290 and it becomes 759041 in the year 2005 The amount of Net profit before taxation in the year 2005 was Rs.759041 and it becomes Rs.1777690 in the year 2006 The amount of Net profit before taxation in the year 2006 was Rs.1777690 and it becomes Rs.788180 in the year 2007 The amount of Net profit before taxation in the year 2007 was Rs.788180 and it becomes Rs.454564 in the year 2008

The amount of Net profit before taxation in the first year 2004 was 100.00% and it becomes -311.99% in the year 2005 The amount of Net profit before taxation in the year 2005 was -311.99% and it becomes -730.69% in the year 2006

104

The amount of Net profit before taxation in the year 2006 was -730.69% and it becomes -323.97% in the year 2007 The amount of Net profit before taxation in the year 2007 was -323.97% and it becomes 186.84% in the year 2008.

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Net profit after taxation

100.00%

162.50%

383.17%

2007

2008

205.74%

131.66%

Percentage

Trend Analysis 500.00% 400.00% 300.00% 200.00% 100.00% 0.00%

Net profit after taxation

2004

2005

2006

2007

2008

Years

Net profit after taxation The amount of Net profit after taxation in the first year 2004 was Rs.314149 and it becomes Rs.510493 in the year 2005 with increment of Rs.196344. The amount of Net profit after taxation in the year 2005 was RS.510493 and it becomes Rs.1203739 in the year 2006 with an increment of Rs.693246 The amount of Net profit after taxation in the year 2006 was Rs.1203739 and it becomes Rs.646323 in the year 2007 with decrement of Rs.557416 The amount of Net profit after taxation in the year 2007 was Rs.646323 and it becomes Rs.413598 in the year 2008 with decrement of Rs.232725 And the amount of Net profit after taxation in the final year 2008 is Rs.413598.

105

The amount of Net profit after taxation in the first year 2004 was 100.00% and it becomes 162.50% in the year 2005 with increment of 62.50% The amount of Net profit after taxation in the year 2005 was 162.50% and it becomes 383.17% in the year 2006 with an increment of 220.67% The amount of Net profit after taxation in the year 2006 was 383.17% and it becomes 205.74% in the year 2007 with decrement of 177.43% The amount of Net profit after taxation in the year 2007 was 205.74% and it becomes 131.66% in the year 2008 with decrement of 74.08% And the amount of Net profit after taxation in the final year 2008 is 131.66%

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 Earning per share - Basic

100.00%

162.50%

383.17%

2007

2008

203.69%

99.72%

Percentage

Trend Analysis 500.00% 400.00% 300.00% 200.00% 100.00% 0.00%

Earning per share Basic

2004

2005

2006

2007

Years

106

2008

Earning per share – Basic The amount of Earning per share - Basic in the first year 2004 was Rs.0.85 and it becomes Rs.1.38 in the year 2005 with increment of Rs.0.53 The amount of Earning per share - Basic in the year 2005 was Rs.1.38 and it becomes Rs.3.25 in the year 2006 with an increment of Rs.1.87 The amount of Earning per share - Basic in the year 2006 was Rs.3.25 and it becomes Rs.1.73 in the year 2007 with decrement of Rs.1.52 The amount of Earning per share - Basic in the year 2007 was Rs.1.73 and it becomes Rs.0.85 in the year 2008 with decrement of Rs.0.88 And the amount of Earning per share - Basic in the final year 2008 is Rs.0.85

The amount of Earning per share - Basic in the first year 2004 was 100.00% and it becomes 162.50% in the year 2005 with increment of 62.50% The amount of Earning per share - Basic in the year 2005 was 162.50% and it becomes 383.17% in the year 2006 with an increment of 220.67% The amount of Earning per share - Basic in the year 2006 was 383.17% and it becomes 203.69% in the year 2007 with decrement of 179.48% The amount of Earning per share - Basic in the year 2007 was 203.69% and it becomes 99.72% in the year 2008 with decrement of 103.97% And the amount of Earning per share - Basic in the final year 2008 is 99.72%

107

Earning per share - Diluted

Fauji Cement Company Limited Income Statement (Trend Analysis) 2004 2005 2006 100.00% 162.50% 383.17%

2007 203.69%

2008 102.55%

Percentage

Trend Analysis 500.00% 400.00% 300.00% 200.00% 100.00% 0.00%

Earning per share - Diluted

2004

2005

2006

2007

2008

Years

Earning per share – Diluted The amount of Earning per share - Diluted in the first year 2004 was Rs.0.75 and it becomes Rs.1.22 in the year 2005 with increment of Rs.0.47 The amount of Earning per share - Diluted in the year 2005 was Rs.1.22 and it becomes Rs.2.87 in the year 2006 with an increment of Rs.1.65 The amount of Earning per share - Diluted in the year 2006 was Rs.2.87 and it becomes Rs.1.53 in the year 2007 with decrement of Rs.1.34 The amount of Earning per share - Diluted in the year 2007 was Rs.1.53 and it becomes Rs.0.77 in the year 2008 with decrement of Rs.0.76 And the amount of Earning per share - Diluted in the final year 2008 is Rs.0.77. The amount of Earning per share - Diluted in the first year 2004 was 100.00% and it becomes 162.50% in the year 2005 with increment of 62.50% The amount of Earning per share - Diluted in the year 2005 was 162.50% and it becomes 383.17% in the year 2006 with an increment of 220.67%

108

The amount of Earning per share - Diluted in the year 2006 was 383.17% and it becomes 203.69% in the year 2007 with decrement of 179.48% The amount of Earning per share - Diluted in the year 2007 was 203.69% and it becomes 102.55% in the year 2008 with decrement of 101.14% And the amount of Earning per share - Diluted in the final year 2008 is 102.55%

109

Income Statement (Vertical Analysis)

Net Sales

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 2007 70.71% 72.55% 75.41% 72.45%

2008 74.66%

Vertical Analysis Percentage

76.00% 74.00% 72.00%

Net Sales

70.00% 68.00% 2004

2005

2006

2007

2008

Years

Net Sales The amount of Net Sales in the year 2004 was Rs.2296231 and it increases to Rs.2845143 in the year 2005 with an increment of Rs.548912 And the amount of Net Sales in the year 2005 was Rs.2845143 and it increases to Rs.4286138 in the year 2006 with an increment of Rs.1440995 The amount of Net Sales in the year 2006 was Rs.4286138 and it decreases to Rs.3463283 in the year 2007 with and decrement of Rs.822855 The amount of Net Sales in the year 2007 was Rs.3463283 and it increases to Rs.3545902 in the year 2008 with and increment of Rs.82619 And the amount Net Sales in the final year 2008 is Rs.3545902.

The amount of Net Sales in the year 2004 was 70.71% .and it increases to 72.55% in the year 2005 with an increment of 1.84% And the amount of Net Sales in the year 2005 was 72.55% and it increases to 75.41% in the year 2006 with an increment of 2.86%

110

The amount of Net Sales in the year 2006 was 75.41% and it decreases to 72.45% in the year 2007 with decrement of 2.96% The amount of Net Sales in the year 2007 was 72.41% and it increases to 74.66% in the year 2008 with increment of 2.25% And the amount Net Sales in the final year 2008 is 74.66%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Cost of sales

47.90%

44.97%

36.86%

2007

2008

49.62%

60.81%

VErtical Analysis 70.00%

Percentages

60.00% 50.00% 40.00%

Less: Cost of sales

30.00% 20.00% 10.00% 0.00% 2004

2005

2006

2007

2008

Years

Cost of sales The amount of Cost of sales in the year 2004 was Rs.1555407 and it increases to Rs.1763567 in the year 2005 with an increment of Rs.208160 And the amount of Cost of sales in the year 2005 was Rs.1763567 and it increases to Rs.2095027 in the year 2006 with an increment of Rs.331460. The amount of Cost of sales in the year 2006 was Rs.2095027 and it increases to Rs.2371788 in the year 2007 with and increment of Rs.276761

111

The amount of Cost of sales in the year 2007 was Rs.2371788 and it increases to Rs.2887790 in the year 2008 with and increment of Rs.516002 And the amount Cost of sales in the final year 2008 is 2887790.

The amount of Cost of sales in the year 2004 was 47.90% .and it decreases to 44.97% in the year 2005 with decrement of 2.93% And the amount of Cost of sales in the year 2005 was 44.97% and it decreases to 36.86% in the year 2006 with decrement of 8.11% The amount of Cost of sales in the year 2006 was 36.86% and it increases to 49.62% in the year 2007 with increment of 12.76% The amount of Cost of sales in the year 2007 was 49.62% and it increases to 60.81% in the year 2008 with and increment of 11.19% And the amount Cost of sales in the final year 2008 is 11.19%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Gross profit

22.81%

27.58%

38.55%

2007

2008

22.83%

13.86%

Percentage

Vertical Analysis 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

Gross profit

2004

2005

2006 Years

112

2007

2008

Gross profit The amount of Gross Profit in the first year 2004 was Rs.740824 and it becomes Rs.1081576 in the year 2005 with an increment of Rs.340752. The amount of Gross Profit in the year 2005 was Rs.1081576 and it becomes Rs.2191111 in the year 2006 with an increment of Rs.1109535 The amount of Gross Profit in the year 2006 was Rs.2191111 and it becomes Rs.1091495 in the year 2007 with a decrement of Rs.1099616 The amount of Gross Profit in the year 2007 was Rs.1091495 and it becomes Rs.658112 in the year 2008 with decrement of Rs.433383. And the amount of Gross Profit in the final year 2008 is Rs.658112.

The amount of Gross Profit in the first year 2004 was 22.81% and it becomes 27.58% in the year 2005 with an increment of 4.77% The amount of Gross Profit in the year 2005 was 27.58% and it becomes 38.55% in the year 2006 with an increment of 10.97% The amount of Gross Profit in the year 2006 was 38.55% and it becomes 22.83% in the year 2007 with a decrement of 15.72% The amount of Gross Profit in the year 2007 was 22.83% and it becomes 13.86% in the year 2008 with decrement of 8.97% And the amount of Gross Profit in the final year 2008 is 13.86%

113

Other income

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006

2007

2008

1.32%

1.54%

2.27%

0.29%

0.76%

Percentage

Vertical Analysis 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%

Other income

2004

2005

2006

2007

2008

years

Other income The amount of other income in the first year 2004 was Rs.42744 and it becomes Rs.11216 in the year 2005 with decrement of Rs.31528 The amount of other income in the year 2005 was Rs.11216 and it becomes Rs.43323 in the year 2006 with an increment of Rs.32107 The amount of other income in the year 2006 was Rs.43323 and it becomes Rs.73835 in the year 2007 with increment of Rs.30512 The amount of other income in the year 2007 was Rs.73835 and it becomes Rs.107574 in the year 2008 with increment of Rs.33739 And the amount of other income in the final year 2008 is Rs.107574

The amount of other income in the first year 2004 was 1.32% and it becomes 0.29% in the year 2005 with decrement of 1.03% The amount of other income in the year 2005 was 0.29% and it becomes 0.76% in the year 2006 with an increment of 0.47%

114

The amount of other income in the year 2006 was 0.76% and it becomes 1.54% in the year 2007 with increment of 0.78% The amount of other income in the year 2007 was 1.54% and it becomes 2.27% in the year 2008 with increment of 0.73% And the amount of other income in the final year 2008 is 2.27%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 0.63% 0.54% 0.56%

Distribution cost

2007 0.85%

Vertical Analysis 1.20%

Percentages

1.00% 0.80% 0.60%

Distribution cost:

0.40% 0.20% 0.00% 2004

2005

2006

2007

2008

Years

Distribution cost The amount of Distribution cost in the first year 2004 was Rs.20416 and it becomes Rs.21333 in the year 2005 with increment of Rs.917 The amount of Distribution cost in the year 2005 was 21333 and it becomes Rs.31694 in the year 2006 with an increment of Rs.10361.

115

2008 1.12%

The amount of Distribution cost in the year 2006 was Rs.31694 and it becomes Rs.40645 in the year 2007 with increment of Rs.8951. The amount of Distribution cost in the year 2007 was Rs.40645 and it becomes Rs.53383 in the year 2008 with increment of Rs.12738 And the amount of Distribution cost in the final year 2008 is Rs.53383.

The amount of Distribution cost in the first year 2004 was 0.63% and it becomes 0.54% in the year 2005 with decrement of 0.09% The amount of Distribution cost in the year 2005 was 0.54% and it becomes 0.56% in the year 2006 with an increment of 0.02% The amount of Distribution cost in the year 2006 was 0.56% and it becomes 0.85% in the year 2007 with increment of 0.29% The amount of Distribution cost in the year 2007 was 0.85% and it becomes 1.12% in the year 2008 with increment of 0.27% And the amount of Distribution cost in the final year 2008 is 1.12%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Administrative expenses

1.22%

1.08%

116

1.17%

2007

2008

1.49%

1.61%

Vertical Analysis 1.80% 1.60% Percentages

1.40% 1.20% 1.00%

Administrative expenses:

0.80% 0.60% 0.40% 0.20% 0.00% 2004

2005

2006

2007

2008

Years

Administrative expenses The amount of Administrative expenses in the first year 2004 was Rs.39535 and it becomes Rs.42292 in the year 2005 with increment of Rs.2757. The amount of Administrative expenses in the year 2005 was Rs.42292 and it becomes Rs.66627 in the year 2006 with an increment of Rs.24335. The amount of Administrative expenses in the year 2006 was Rs.66627 and it becomes Rs.71302 in the year 2007 with increment of Rs.4675 The amount of Administrative expenses in the year 2007 was Rs.71302 and it becomes Rs.76495 in the year 2008 with increment of Rs.5193. And the amount of Administrative expenses in the final year 2008 is Rs.76495.

The amount of Administrative expenses in the first year 2004 was 1.22% and it becomes 1.08% in the year 2005 with decrement of 0.14% The amount of Administrative expenses in the year 2005 was 1.08% and it becomes 1.17% in the year 2006 with increment of 0.09% The amount of Administrative expenses in the year 2006 was 1.17% and it becomes 1.49% in the year 2007 with increment of 0.32%

117

The amount of Administrative expenses in the year 2007 was 1.49% and it becomes 1.61% in the year 2008 with increment of 0.12% And the amount of Administrative expenses in the final year 2008 is 1.61%

Other Operating expenses

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 0.02% 1.03% 1.66%

2007 1.22%

Vertical analysis 1.80% 1.60% Percentages

1.40% 1.20% 1.00%

Other Operating expenses:

0.80% 0.60% 0.40% 0.20% 0.00% 2004

2005

2006

2007

2008

Years

Other Operating expenses The amount of Other Operating expenses in the first year 2004 was Rs.533 and it becomes Rs.40493 in the year 2005 with increment of Rs.39960 The amount of Other Operating expenses in the year 2005 was Rs.40493 and it becomes Rs.94127 in the year 2006 with an increment of Rs.53634 The amount of Other Operating expenses in the year 2006 was Rs.94127 and it becomes Rs.58098 in the year 2007 with decrement of Rs.36029

118

2008 0.72%

The amount of Other Operating expenses in the year 2007 was Rs.58098 and it becomes Rs.34290 in the year 2008 with decrement of Rs.23808. And the amount of Other Operating expenses in the final year 2008 is Rs.3429.

The amount of Other Operating expenses in the first year 2004 was 0.02% and it becomes 1.03% in the year 2005 with increment of 1.01% The amount of Other Operating expenses in the year 2005 was 1.03% and it becomes 1.66% in the year 2006 with an increment of 0.63% The amount of Other Operating expenses in the year 2006 was 1.66% and it becomes 1.22% in the year 2007 with decrement of 0.44% The amount of Other Operating expenses in the year 2007 was 1.22% and it becomes 0.72% in the year 2008 with decrement of 0.50% And the amount of Other Operating expenses in the final year 2008 is 0.72%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Finance Cost

6.29%

5.86%

4.65%

2007

2008

4.33%

3.09%

Vertical Analysis 7.00%

Percentages

6.00% 5.00% 4.00% Finance Cost:

3.00% 2.00% 1.00% 0.00% 2004

2005

2006 Years

119

2007

2008

Finance Cost The amount of Finance Cost in the first year 2004 was Rs.204222 and it becomes Rs.229633 in the year 2005 with increment of Rs.25411 The amount of Finance Cost in the year 2005 was Rs.229633 and it becomes Rs.264296 in the year 2006 with an increment of Rs.34633. The amount of Finance Cost in the year 2006 was Rs.264296 and it becomes Rs.207105 in the year 2007 with decrement of Rs.57191 The amount of Finance Cost in the year 2007 was Rs.207105 and it becomes Rs.146954 in the year 2008 with decrement of Rs.60151. And the amount of Finance Cost in the final year 2008 is Rs.146954

The amount of Finance Cost in the first year 2004 was 6.29% and it becomes 5.86% in the year 2005 with decrement of 0.43% The amount of Finance Cost in the year 2005 was 5.86% and it becomes 4.65% in the year 2006 with decrement of 1.21% The amount of Finance Cost in the year 2006 was 4.65% and it becomes 4.33% in the year 2007 with decrement of 0.32% The amount of Finance Cost in the year 2007 was 4.33% and it becomes 3.09% in the year 2008 with decrement of 1.24% And the amount of Finance Cost in the final year 2008 is 3.09%

120

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Net profit before taxation

-7.49%

19.36%

31.28%

2007

2008

16.49%

9.57%

Vertical Analysis

Percentage

40.00% 30.00% 20.00%

Net profit before taxation

10.00% 0.00% -10.00%

2004

2005

2006

2007

2008

Years

Net profit before taxation The amount of Net profit before taxation in the first year 2004 was Rs.-243290 and it becomes 759041 in the year 2005 The amount of Net profit before taxation in the year 2005 was Rs.759041 and it becomes Rs.1777690 in the year 2006 The amount of Net profit before taxation in the year 2006 was Rs.1777690 and it becomes Rs.788180 in the year 2007 The amount of Net profit before taxation in the year 2007 was Rs.788180 and it becomes Rs.454564 in the year 2008

The amount of Net profit before taxation in the first year 2004 was -7.49% and it becomes 19.36% in the year 2005 with increment of 26.85% The amount of Net profit before taxation in the year 2005 was 19.36% and it 31.28% in the year 2006 with increment of 11.92% The amount of Net profit before taxation in the year 2006 was 31.28% and it becomes 16.49% in the year 2007 with decrement of 14.79%

121

The amount of Net profit before taxation in the year 2007 was 16.49% and it becomes 9.57% in the year 2008 with decrement of 6.92% And the amount of Net profit before taxation in the final year 2008 is 9.57%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Net profit after taxation

9.67%

13.02%

21.18%

2007

2008

13.52%

8.71%

Percentage

Vertical Analysis 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Net profit after taxation

2004

2005

2006

2007

2008

Years

Net profit after taxation The amount of Net profit after taxation in the first year 2004 was Rs.314149 and it becomes Rs.510493 in the year 2005 with increment of Rs.196344. The amount of Net profit after taxation in the year 2005 was RS.510493 and it becomes Rs.1203739 in the year 2006 with an increment of Rs.693246 The amount of Net profit after taxation in the year 2006 was Rs.1203739 and it becomes Rs.646323 in the year 2007 with decrement of Rs.557416 The amount of Net profit after taxation in the year 2007 was Rs.646323 and it becomes Rs.413598 in the year 2008 with decrement of Rs.232725 And the amount of Net profit after taxation in the final year 2008 is Rs.413598.

122

The amount of Net profit after taxation in the first year 2004 was 9.67% and it becomes 13.02% in the year 2005 with increment of 3.35% The amount of Net profit after taxation in the year 2005 was 13.02% and it becomes 21.18% in the year 2006 with an increment of 8.16% The amount of Net profit after taxation in the year 2006 was 21.18% and it becomes 13.52% in the year 2007 with decrement of 7.66% The amount of Net profit after taxation in the year 2007 was 13.52% and it becomes 8.71% in the year 2008 with decrement of 5.35% And the amount of Net profit after taxation in the final year 2008 is 8.17%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Earning per share - Basic

0.00%

0.00%

0.00%

2007

2008

0.00%

0.00%

Vertical Analysis Percentage

0.00% 0.00%

Earning per share - Basic

0.00% 0.00% 2004

2005

2006

2007

Years

123

2008

Earning per share – Basic The amount of Earning per share - Basic in the first year 2004 was Rs.0.85 and it becomes Rs.1.38 in the year 2005 with increment of Rs.0.53 The amount of Earning per share - Basic in the year 2005 was Rs.1.38 and it becomes Rs.3.25 in the year 2006 with an increment of Rs.1.87 The amount of Earning per share - Basic in the year 2006 was Rs.3.25 and it becomes Rs.1.73 in the year 2007 with decrement of Rs.1.52 The amount of Earning per share - Basic in the year 2007 was Rs.1.73 and it becomes Rs.0.85 in the year 2008 with decrement of Rs.0.88 And the amount of Earning per share - Basic in the final year 2008 is Rs.0.85

The amount of earning per share - Basic in the first year 2004, 2005, 2006, 2007 and 2008 was 0.00%

Fauji Cement Company Limited Income Statement (Vertical Analysis) 2004 2005 2006 Earning per share - Diluted

0.00%

0.00%

0.00%

2007

2008

0.00%

0.00%

Vertical Analysis Percentage

0.00% 0.00%

Earning per share - Diluted

0.00% 0.00% 2004

2005

2006

2007

Years

124

2008

Earning per share – Diluted The amount of Earning per share - Diluted in the first year 2004 was Rs.0.75 and it becomes Rs.1.22 in the year 2005 with increment of Rs.0.47 The amount of Earning per share - Diluted in the year 2005 was Rs.1.22 and it becomes Rs.2.87 in the year 2006 with an increment of Rs.1.65 The amount of Earning per share - Diluted in the year 2006 was Rs.2.87 and it becomes Rs.1.53 in the year 2007 with decrement of Rs.1.34 The amount of Earning per share - Diluted in the year 2007 was Rs.1.53 and it becomes Rs.0.77 in the year 2008 with decrement of Rs.0.76 And the amount of Earning per share - Diluted in the final year 2008 is Rs.0.77.

The amount of earning per share - Diluted in the first year 2004, 2005, 2006, 2007 and 2008 was 0.00%

125

126

Ratio Analysis

Current ratio

CURRENT RATIO CURRENT ASSETS CURRENT LIABILITIES

=

CurrentAssets CurrentLiabilities

Fauji Cement Company Limited Liquidity Ratio Analysis 2004 2005 2006 1.54 0.97 1.25 574460 1172765 1579382 372116 1206946 1267198

2007 1.35 1953527 1442287

2008 2.16 5294083 2454761

liquidity Ratio 2.50

2.16

2.00 Ratios

1.54 1.50

1.25

1.35 Current Ratio

0.97

1.00 0.50 0.00 2004

2005

2006

2007

2008

Years

The amount of Current Assets in the year 2004 was Rs.574460 and the amount of current liabilities in the first year 2004 was Rs.372116 and current ratio was 1.54 in the year 2004. And the amount current assets increases to Rs.1172765 in the year 2005 with an increment of Rs.598305 and the amount of current liabilities becomes Rs.1206946 in the year 2005 with increment of Rs.834830 and current ratio becomes 0.97 in the year 2005. And the amount of current assets increases to Rs.1579382 in the year 2006 with an increment of Rs.406617 and the amount current liabilities becomes Rs.1267198 in the

127

year 2006 with increment of Rs.60252 and the current ratio becomes 1.25 in the year 2006. The amount of current assets increases to Rs.1953527 in the year 2007 with an increment of Rs.374145 and the amount of current liabilities becomes Rs.1442287 in the year 2007 with increment of Rs.175089 and current ratio becomes 1.35 in the year 2007. And the amount of current assets increases to Rs.5294083 in the year 2008 with an increment of Rs.3340556 and the amount of current liabilities becomes Rs.2454761 in the year 2008 with increment of Rs.1012474 and the current ratio becomes 2.16 in the year 2008.

Net Working Capital =

Net Working Capital CURRENT ASSETS CURRENT LIABILITIES

current assets – current liabilities

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 202344 -34181 312184 574460 1172765 1579382 372116 1206946 1267198

2007 511240 1953527 1442287

2008 2839322 5294083 2454761

Liquidity Ratio 2839322

Net Working Captical

3000000 2500000 2000000 1500000

Net Working Capital 1000000 500000

312184

202344

511240

0 -500000

2004

-34181 2005

2006 Years

128

2007

2008

The amount of Current Assets in the year 2004 was Rs.574460 and the amount of current liabilities in the first year 2004 was Rs.372116 and Net Working Capital was 202344 in the year 2004. And the amount current assets increases to Rs.1172765 in the year 2005 with an increment of Rs.598305 and the amount of current liabilities becomes Rs.1206946 in the year 2005 with increment of Rs.834830 and Net Working Capital becomes -34181 in the year 2005. And the amount of current assets increases to Rs.1579382 in the year 2006 with an increment of Rs.406617 and the amount current liabilities becomes Rs.1267198 in the year 2006 with increment of Rs.60252 and the Net Working Capital becomes 312184 in the year 2006. And the amount of current assets increases to Rs.1953527 in the year 2007 with an increment of Rs.374145 and the amount of current liabilities becomes Rs.1442287 in the year 2007 with increment of Rs.175089 and Net Working Capital becomes 511240 in the year 2007. And the amount of current assets increases to Rs.5294083 in the year 2008 with an increment of Rs.3340556 and the amount of current liabilities becomes Rs.2454761 in the year 2008 with increment of Rs.1012474 and the Net Working Capital becomes 2839322 in the year 2008.

Acid ratio =

(CurrentAsset − Inventory) CurrentLiabilities

Fauji Cement Company Limited Liquidity Ratios Analysis Acid Ratio CURRENT ASSETS STOCK IN TRADE CURRENT LIABILITIES

2004 1.38 574460 61600 372116

2005 0.93 1172765 55931 1206946

129

2006 1.13 1579382 145090 1267198

2007 1.23 1953527 183309 1442287

2008 2.06 5294083 230089 2454761

Liquidity Ratio 2.50 2.06

Ratio

2.00 1.50

1.38 1.13

1.23

Acid Ratio

0.93

1.00 0.50 0.00 2004

2005

2006

2007

2008

Years

The amount of Current Assets in the year 2004 was Rs.574460 and the amount of current liabilities in the first year 2004 was Rs.372116 and the amount of Stock In Trade in the first year 2004 was Rs.61600 due to witch the Acid Ratio becomes 1.38 in the year 2004 And the amount current assets increases to Rs.1172765 in the year 2005 with an increment of Rs.598305 and the amount of current liabilities becomes Rs.1206946 in the year 2005 with increment of Rs.834830 and the amount of Stock In Trade decreases to Rs.55931 in the year 2005 with decrement of Rs.5669 and the Acid Ratio becomes 0.93 in 2005. And the amount of current assets increases to Rs.1579382 in the year 2006 with an increment of Rs.406617 and the amount current liabilities becomes Rs.1267198 in the year 2006 with increment of Rs.60252 and the amount of Stock In Trade increases to Rs.145090 in the year 2006 with increment of Rs.55931 and the Acid Ratio becomes 1.13 in 2006. The amount of current assets increases to Rs.1953527 in the year 2007 with an increment of Rs.374145 and the amount of current liabilities becomes Rs.1442287 in the year 2007 with increment of Rs.175089 and the amount of Stock In Trade becomes Rs.183309 in the year 2007 with increment of Rs.38219 and the Acid Ratio becomes 1.23 in 2007. And the amount of current assets increases to Rs.5294083 in the year 2008 with an increment of Rs.3340556 and the amount of current liabilities becomes Rs.2454761 in the year 2008 with increment of Rs.1012474 and the amount of Stock In Trade becomes

130

Rs.230089 in the year 2008 with increment of Rs.46780 and Acid Ratio becomes 2.06 in 2008.

Cash ratio

Cash Ratio Cash and bank balances CURRENT LIABILITIES

=

(cash & cashequilent + marketable sec urities) currentliabilities

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 0.53 0.50 0.67 197088 603110 847590 372116 1206946 1267198

2007 0.29 423133 1442287

2008 1.54 3783909 2454761

Liquidity Ratio 1.80

1.54

1.60 1.40 Ratio

1.20 1.00 0.80 0.60

Cash Ratio

0.67 0.53

0.50 0.29

0.40 0.20 0.00 2004

2005

2006

2007

2008

Years

The amount of Cash and bank balances in the year 2004 was Rs.197088 and the amount of current liabilities in the first year 2004 was Rs.372116 due to which the Cash Ratio becomes 0.53 in the year 2004. And the amount of Cash and bank balances increases to Rs.603110 in the year 2005 with an increment of Rs.406022 and the amount of current liabilities becomes Rs.1206946 in

131

the year 2005 with increment of Rs.834830 and Cash Ratio becomes 0.50 in the year 2005. And the amount of Cash and bank balances increases to Rs.847590 in the year 2006 with an increment of Rs.244480 and the amount current liabilities becomes Rs.1267198 in the year 2006 with an increment of Rs.60252 and the Cash Ratio becomes 0.67 in the year 2006. The amount of Cash and bank balances decreases to Rs.423133 in the year 2007 with decrement of Rs.424457 and the amount of current liabilities becomes Rs.1442287 in the year 2007 with an increment of Rs.175089 and Cash Ratio becomes 0.29 in the year 2007. And the amount of Cash and bank balances increases to Rs.3783909 in the year 2008 with an increment of Rs.3360776 and the amount of current liabilities becomes Rs.2454761 in the year 2008 with an increment of Rs.1012474 and the Cash Ratio becomes 1.54 in the year 2008.

Debt/equity ratio =

Debt/Equity Ratio Total Liabilities SHARE CAPITAL AND RESERVES

totalliabilities shareholder ' sequity

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 3.05 2.54 1.89 5910353 6223788 6198108 1939134 2449624 3282616

132

2007 1.71 6400688 3735206

2008 1.34 12454493 9283981

Debt Ratio 3.50

3.05

3.00

2.54

Ratios

2.50 1.89

2.00

1.71 1.34

1.50

Debt/Equity Ratio

1.00 0.50 0.00 2004

2005

2006

2007

2008

Years

The amount of Total liabilities in the first year 2004 was Rs.5910353 and the amount of SHARE CAPITAL AND RESERVES was Rs.1939134 due to which Debt/Equity Ratio becomes 3.05 in the year 2004. And the amount of Total liabilities becomes Rs.6223788 in the year 2005 with an increment of Rs.313435 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.2449624 in the year 2005 with an increment of Rs.510490 and the Debt/Equity Ratio becomes 2.54 in the year 2005. And the amount of Total liabilities becomes Rs.6198108 in the year 2006 with decrement of Rs.25680 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.3282616 in the year 2006 with an increment of Rs.832992 and the Debt/Equity Ratio becomes 1.89 in the year 2006. And the amount of Total liabilities becomes Rs.6400688 in the year 2007 with an increment of Rs.202580 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.3735206 in the year 2007 with an increment of Rs.452590 and the Debt/Equity Ratio becomes 1.71 in the year 2007. And the amount of Total liabilities becomes Rs.12454493 in the year 2008 with an increment of Rs.6053805 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.9283981 in the year 2008 with an increment of Rs.5548775 and the Debt/Equity Ratio becomes 1.34 in the year 2008.

133

Debt to tangible net worth =

totalliabilities ( shareholder ' sequity − int angibleassets)

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Debt to tangible net worth Total Liabilities SHARE CAPITAL AND RESERVES Intangible assets

3.05 5910353 1939134 0

2.54 6223788 2449624 0

1.89 6198108 3282616 0

2007

2008

1.71 6400688 3735206 0

1.34 12454493 9283981 0

Debt Ratio 3.50

3.05

3.00

2.54

Ratios

2.50 1.89

2.00

1.71 1.34

1.50

Debt to tangible net worth

1.00 0.50 0.00 2004

2005

2006

2007

2008

Years

The amount of Total liabilities in the first year 2004 was Rs.5910353 and the amount of SHARE CAPITAL AND RESERVES was Rs.1939134 due to which Debt/Equity Ratio becomes 3.05 in the year 2004. And the amount of Total liabilities becomes Rs.6223788 in the year 2005 with an increment of Rs.313435 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.2449624 in the year 2005 with an increment of Rs.510490 and the Debt/Equity Ratio becomes 2.54 in the year 2005.

134

And the amount of Total liabilities becomes Rs.6198108 in the year 2006 with decrement of Rs.25680 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.3282616 in the year 2006 with an increment of Rs.832992 and the Debt/Equity Ratio becomes 1.89 in the year 2006. And the amount of Total liabilities becomes Rs.6400688 in the year 2007 with an increment of Rs.202580 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.3735206 in the year 2007 with an increment of Rs.452590 and the Debt/Equity Ratio becomes 1.71 in the year 2007. And the amount of Total liabilities becomes Rs.12454493 in the year 2008 with an increment of Rs.6053805 and the amount of SHARE CAPITAL AND RESERVES becomes Rs.9283981 in the year 2008 with an increment of Rs.5548775 and the Debt/Equity Ratio becomes 1.34 in the year 2008.

Day’s Sales in account receivable =

Day's Sales in account receivable TRADE DEBTS Net Sales

averagegrossaccountreceivable (netsales / 365)

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 7.12 13.76 2.17 44789 107231 25475 2296231 2845143 4286138

135

2007 2.06 19558 3463283

2008 2.77 26927 3545902

Activity Ratio 16.00

13.76

14.00

Ratios

12.00 10.00 8.00

7.12

Day's Sales in account receivable

6.00 4.00

2.17

2.06

2006

2007

2.77

2.00 0.00 2004

2005

2008

Years

The amount of Trade debts in the year 2004 was Rs.44789 and the amount of Net Sales in the first year 2004 was Rs.2296231 and the Day's Sales in account receivable becomes 7.12 in the year 2004. And the amount Trade debts increases to Rs.107231 in the year 2005 with an increment of Rs.62442 and the amount of Net Sales becomes Rs.2845143 in the year 2005 with increment of Rs.548912 and the Day's Sales in account receivable becomes 13.76 in the year 2005. And the amount Trade debts decreases to Rs.25475 in the year 2006 with decrement of Rs.81756 and the amount of Net Sales becomes Rs.4286138 in the year 2006 with increment of Rs.1440995 and the Day's Sales in account receivable becomes 2.17 in the year 2006. And the amount Trade debts decreases to Rs.19558 in the year 2007 with decrement of Rs.5917 and the amount of Net Sales becomes Rs.3463283 in the year 2007 with decrement of Rs.8228885 and the Day's Sales in account receivable becomes 2.06 in the year 2007. And the amount Trade debts increases to Rs.26927 in the year 2008 with increment of Rs.7369 and the amount of Net Sales becomes Rs.3545902 in the year 2008 with increment of Rs.82619 and the Day's Sales in account receivable becomes 2.77 in the year 2008.

136

Account receivable turn over=

netsales averageaccountreceivables

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Account Receivable Turn Over Net Sales TRADE DEBTS

51.27 2296231 44789

26.53 2845143 107231

168.25 4286138 25475

2007

2008

177.08 3463283 19558

131.69 3545902 26927

Ratios

Activity Ratio 200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00

168.25

177.08 131.69 Account Receivable Turn Over

51.27 26.53

2004

2005

2006

2007

2008

Years

The amount of Trade debts in the year 2004 was Rs.44789 and the amount of Net Sales in the first year 2004 was Rs.2296231 and the Account Receivable Turn Over becomes 5.27 in the year 2004. And the amount Trade debts increases to Rs.107231 in the year 2005 with an increment of Rs.62442 and the amount of Net Sales becomes Rs.2845143 in the year 2005 with increment of Rs.548912 and the Account Receivable Turn Over becomes 26.53 in the year 2005. And the amount Trade debts decreases to Rs.25475 in the year 2006 with decrement of Rs.81756 and the amount of Net Sales becomes Rs.4286138 in the year 2006 with

137

increment of Rs.1440995 and the Account Receivable Turn Over becomes 168.25 in the year 2006. And the amount Trade debts decreases to Rs.19558 in the year 2007 with decrement of Rs.5917 and the amount of Net Sales becomes Rs.3463283 in the year 2007 with decrement of Rs.8228885 and the Account Receivable Turn Over becomes 177.08 in the year 2007. And the amount Trade debts increases to Rs.26927 in the year 2008 with increment of Rs.7369 and the amount of Net Sales becomes Rs.3545902 in the year 2008 with increment of Rs.82619 and the Account Receivable Turn Over becomes 131.69 in the year 2008.

Day’s sales in inventory

=

endinginventiry (CGS / 365)

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Day's sales in inventory STOCK IN TRADE Cost of sales

14.46 61600 1555407

11.58 55931 1763567

25.28 145090 2095027

2007

2008

28.21 183309 2371788

29.08 230089 2887790

Activity Ratio 35.00 28.21

30.00

29.08

25.28

Ratios

25.00 20.00 15.00

Day's sales in inventory

14.46 11.58

10.00 5.00 0.00 2004

2005

2006

2007

Years

138

2008

The amount of Stock In trade in the year 2004 was Rs.61600 and the amount of Cost of sales in the first year 2004 was Rs.1555407 and the Day's sale in inventory was 14.46 in the year 2004. And the amount Stock in trade decreases to Rs.55931 in the year 2005 with decrement of Rs.5669 and the amount of Cost of sales becomes Rs.1763567 in the year 2005 with an increment of Rs.208160 and the Day's sale in inventory becomes 11.58 in the year 2005. And the amount Stock in trade increases to Rs.145090 in the year 2006 with an increment of Rs.89159 and the amount of Cost of sales becomes Rs.2095027 in the year 2006 with an increment of Rs.331460 and the Day's sale in inventory becomes 25.28 in the year 2006. And the amount Stock in trade increases to Rs.183309 in the year 2007 with an increment of Rs.38219 and the amount of Cost of sales becomes Rs.2371788 in the year 2007 with an increment of Rs.276761 and the Day's sale in inventory becomes 28.21 in the year 2007. And the amount Stock in trade increases to Rs.230089 in the year 2008 with an increment of Rs.46780 and the amount of Cost of sales becomes Rs.2887790 in the year 2008 with an increment of Rs.516002 and the Day's sale in inventory becomes 29.08 in the year 2008.

Inventory turn over =

CGS averageinventory

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Inventory turnover Cost of sales STOCK IN TRADE

61.46 1555407 61600

79.34 1763567 55931

139

85.08 2095027 145090

2007

2008

70.21 2371788 183309

63.86 2887790 230089

Activity Ratio 90.00

79.34

80.00 70.00

85.08 70.21

61.46

63.86

Ratios

60.00 50.00

Inventory turnover

40.00 30.00 20.00 10.00 0.00 2004

2005

2006

2007

2008

Years

The amount of Stock In trade in the year 2004 was Rs.61600 and the amount of Cost of sales in the first year 2004 was Rs.1555407 and the Inventory turnover was 61.46 in the year 2004. And the amount Stock in trade decreases to Rs.55931 in the year 2005 with decrement of Rs.5669 and the amount of Cost of sales becomes Rs.1763567 in the year 2005 with an increment of Rs.208160 and the Inventory turnover becomes 79.34 in the year 2005. And the amount Stock in trade increases to Rs.145090 in the year 2006 with an increment of Rs.89159 and the amount of Cost of sales becomes Rs.2095027 in the year 2006 with an increment of Rs.331460 and the Inventory turnover becomes 85.08 in the year 2006. And the amount Stock in trade increases to Rs.183309 in the year 2007 with an increment of Rs.38219 and the amount of Cost of sales becomes Rs.2371788 in the year 2007 with an increment of Rs.276761 and the Inventory turnover becomes 70.21 in the year 2007. And the amount Stock in trade increases to Rs.230089 in the year 2008 with an increment of Rs.46780 and the amount of Cost of sales becomes Rs.2887790 in the year 2008 with an increment of Rs.516002 and the Inventory turnover becomes 63.86 in the year 2008.

140

Total asset turn over =

netsales averagetotalassets

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 0.39 0.46 0.69 2296231 2845143 4286138 5910353 6223788 6198108

Total asset turnover Net Sales Total Assets

2007 0.54 3463283 6400688

2008 0.28 3545902 12454493

Activity Ratio 0.80

0.69

0.70

Ratios

0.60 0.50 0.40

0.54 0.46 0.39 0.28

0.30

Total asset turnover

0.20 0.10 0.00 2004

2005

2006

2007

2008

Years

The amount of Net Sales in the year 2004 was Rs.2296231 and the amount of Total Assets in the first year 2004 was Rs.5910353 and Total asset turnover was 0.39 in the year 2004. And the amount Net Sales increases to Rs.2845143 in the year 2005 with an increment of Rs.548912 and the amount of Total Assets becomes Rs.6223788 in the year 2005 with increment of Rs.313435 and Total asset turnover becomes 0.46 in the year 2005. And the amount Net Sales increases to Rs.4286138 in the year 2006 with an increment of Rs.1440995 and the amount of Total Assets becomes Rs.6198108 in the year 2006 with decrement of Rs.25680 and Total asset turnover becomes 0.69 in the year 2006.

141

And the amount Net Sales decreases to Rs.3463283 in the year 2007 with decrement of Rs.822855 and the amount of Total Assets becomes Rs.6400688 in the year 2007 with increment of Rs.202580 and Total asset turnover becomes 0.54 in the year 2007. And the amount Net Sales increases to Rs.3545902 in the year 2008 with an increment of Rs.82619 and the amount of Total Assets becomes Rs.12454493 in the year 2008 with increment of Rs.6053805 and Total asset turnover becomes 0.28 in the year 2008.

grossprofit netsales

Gross profit margin =

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Gross profit margin (%) Gross profit Net Sales

32.26% 740824 2296231

38.01% 1081576 2845143

51.12% 2191111 4286138

2007

2008

31.52% 1091495 3463283

18.56%

Profitability Ratio 60.00%

51.12%

50.00%

Ratios

40.00%

38.01% 32.26%

31.52%

30.00%

Gross profit margin 18.56%

20.00% 10.00% 0.00% 2004

2005

2006 Years

142

2007

2008

658112 3545902

The amount of Gross Profit in the year 2004 was Rs.740824 and the amount of Net Sales in the first year 2004 was Rs.2296231 and Gross Profit Margin was 32.26% in the year 2004. And the amount of Gross Profit increases to Rs.1081576 in the year 2005 with an increment of Rs.340752 and the amount of Net Sales becomes Rs.2845143 in the year 2005 with increment of Rs.548912 and the Gross Profit Margin becomes 38.01% in the year 2005. And the amount of Gross Profit increases to Rs.2191111 in the year 2006 with an increment of Rs.1109535 and the amount of Net Sales becomes Rs.4286138 in the year 2006 with increment of Rs.1440995 and the Gross Profit Margin becomes 51.12% in the year 2006. And the amount of Gross Profit decreases to Rs.1091495 in the year 2007 with decrement of Rs.1099616 and the amount of Net Sales becomes Rs.3463283 in the year 2007 with decrement of Rs.822855 and the Gross Profit Margin becomes 31.52% in the year 2007. And the amount of Gross Profit decreases to Rs.658112 in the year 2008 with decrement of Rs.433383 and the amount of Net Sales becomes Rs.3545902 in the year 2008 with increment of Rs.82619 and the Gross Profit Margin becomes 18.56% in the year 2008.

Operating income margin =

operatingincome netsales

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Operating income margin (%)

Operating Profit Net Sales

2007

2008

1.70%

34.75%

47.64%

28.74%

16.96%

39068

988673

2041984

995285

601518

2296231

2845143

4286138

3463283

3545902

143

Profitability ratio 60.00% 47.64%

50.00%

Ratios

40.00%

34.75% 28.74%

30.00%

16.96%

20.00% 10.00%

Operating income margin

1.70%

0.00% 2004

2005

2006

2007

2008

Years

The amount of Operating Profit in the year 2004 was Rs.39068 and the amount of Net Sales in the first year 2004 was Rs.2296231 and Operating Income Margin was 1.70% in the year 2004. And the amount of Operating Profit increases to Rs.988673 in the year 2005 with an increment of Rs.949605 and the amount of Net Sales becomes Rs.2845143 in the year 2005 with increment of Rs.548912 and the Operating Income Margin becomes 34.75% in the year 2005. And the amount of Operating Profit increases to Rs.2041984 in the year 2006 with an increment of Rs.1053311 and the amount of Net Sales becomes Rs.4286138 in the year 2006 with increment of Rs.1440995 and the Operating Income Margin becomes 47.64% in the year 2006. And the amount of Operating Profit decreases to Rs.995285 in the year 2007 with decrement of Rs.1046699 and the amount of Net Sales becomes Rs.3463283 in the year 2007 with decrement of Rs.822855 and the Operating Income Margin becomes 28.74% in the year 2007. And the amount of Operating Profit decreases to Rs.601518 in the year 2008 with decrement of Rs.393767 and the amount of Net Sales becomes Rs.3545902 in the year 2008 with increment of Rs.82619 and the Operating Income Margin becomes 16.96% in the year 2008

144

Net profit margin

netincome netsales

=

Fauji Cement Company Limited Liquidity Ratios Analysis 2004 2005 2006 Net profit margin Net profit after taxation Net Sales

13.68% 314149 2296231

17.94% 510493 2845143

28.08% 1203739 4286138

2007

2008

18.66% 646323 3463283

11.66% 413598 3545902

Profitability Ratio 28.08%

30.00% 25.00%

Ratios

15.00%

18.66%

17.94%

20.00% 13.68%

11.66%

Net profit margin

10.00% 5.00% 0.00% 2004

2005

2006

2007

2008

Years

The amount of Net Profit after taxation in the year 2004 was Rs.314149 and the amount of Net Sales in the first year 2004 was Rs.2296231 and Net Profit Margin was 13.68% in the year 2004. And the amount of Net profit after taxation increases to Rs.510493 in the year 2005 with an increment of Rs.196344 and the amount of Net Sales becomes Rs.2845143 in the year 2005 with increment of Rs.548912 and the Net Profit Margin becomes 17.94% in the year 2005. And the amount of Net profit after taxation increases to Rs.1203739 in the year 2006 with an increment of Rs.693246 and the amount of Net Sales becomes Rs.4286138 in the year

145

2006 with increment of Rs.1440995 and the Net Profit Margin becomes 28.08% in the year 2006. And the amount of Net profit after taxation decreases to Rs.646323 in the year 2007 with decrement of Rs.557416 and the amount of Net Sales becomes Rs.3463283 in the year 2007 with decrement of Rs.822855 and the Net Profit Margin becomes 18.66% in the year 2007. And the amount of Net profit after taxation decreases to Rs.413598 in the year 2008 with decrement of Rs.232725 and the amount of Net Sales becomes Rs.3545902 in the year 2008 with increment of Rs.82619 and the Net Profit Margin becomes 11.66% in the year 2008

Return on asset

=

netincome averagetotalassets

Fauji Cement Company Limited Ratio Analysis 2004 2005 2006 Return on asset (%) Net profit after taxation Total Assets

5.32% 314149 5910353

8.20% 510493 6223788

19.42% 1203739 6198108

2007

2008

10.10% 646323 6400688

3.32% 413598 12454493

Profitability Ratio 25.00% 19.42%

Ratios

20.00% 15.00%

Return on asset

10.10%

8.20%

10.00% 5.32%

3.32%

5.00% 0.00% 2004

2005

2006 Years

146

2007

2008

The amount of Net Profit after taxation in the year 2004 was Rs.314149 and the amount of Total Assets in the first year 2004 was Rs.5910353 and the Return on asset was 5.32% in the year 2004. And the amount of Net profit after taxation increases to Rs.510493 in the year 2005 with an increment of Rs.196344 and the amount of Total Assets becomes Rs.6223788 in the year 2005 with increment of Rs.313435 and the Return on asset becomes 8.20% in the year 2005. And the amount of Net profit after taxation increases to Rs.1203739 in the year 2006 with an increment of Rs.693246 and the amount of Total Assets becomes Rs.6198108 in the year 2006 with decrement of Rs.25680 and the Return on asset becomes 19.42% in the year 2006. And the amount of Net profit after taxation decreases to Rs.646323 in the year 2007 with decrement of Rs.557416 and the amount of Total Assets becomes Rs.6400688 in the year 2007 with increment of Rs.202580 and the Return on asset becomes 10.10% in the year 2007. And the amount of Net profit after taxation decreases to Rs.413598 in the year 2008 with decrement of Rs.232725 and the amount of Total Assets becomes Rs.12454493 in the year 2008 with increment of Rs.6053805 and the Return on asset becomes 3.32% in the year 2008

Return on sales to fixed assets =

Return on Sales to fixed assets Net Sales FIXED ASSETS - Tangible

netsales averagetotalfixedassets

Fauji Cement Company Limited Ratio Analysis 2004 2005 0.49 0.61 2296231 2845143 4729254 4658272

147

2006 0.94 4286138 4563115

2007 0.79 3463283 4392450

2008 0.50 3545902 7106599

Ratios

Profitability Ratio 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00

0.94 0.79 0.61 0.50

0.49

2004

2005

2006

2007

Return on Sales to fixed assets

2008

Years

The amount of Net Sales in the year 2004 was Rs.2296231 and the amount of Fixed Assets in the first year 2004 was Rs.4729254 and the Return on Sales to fixed assets was 0.49 in the year 2004. And the amount Net Sales increases to Rs.2845143 in the year 2005 with an increment of Rs.548912 and the amount of Fixed Assets becomes Rs.4658272 in the year 2005 with decrement of Rs.70982 and the Return on Sales to fixed assets becomes 0.61 in the year 2005. And the amount Net Sales increases to Rs.4286138 in the year 2006 with an increment of Rs.1440995 and the amount of Fixed Assets becomes Rs.4563115 in the year 2006 with decrement of Rs.95157 and the Return on Sales to fixed assets becomes 0.94 in the year 2006. And the amount Net Sales decreases to Rs.3463283 in the year 2007 with decrement of Rs.822855 and the amount of Fixed Assets becomes Rs.4392450 in the year 2007 with decrement of Rs.170665 and the Return on Sales to fixed assets becomes 0.79 in the year 2007. And the amount Net Sales increases to Rs.3545902 in the year 2008 with an increment of Rs.82619 and the amount of Fixed Assets becomes Rs.7106599 in the year 2008 with increment of Rs.2714149 and the Return on Sales to fixed assets becomes 0.50 in the year 2008.

148

netincome − redeemablepreferredstockdividend averagetotalequity

Return on total equity =

Fauji Cement Company Limited Ratio Analysis 2004 2005 Return on total equity Net profit after taxation SHARE CAPITAL AND RESERVES

16.20% 314149 1939134

20.84% 510493 2449624

2006

2007

2008

36.67% 1203739 3282616

17.30% 646323 3735206

4.45% 413598 9283981

Profitability Ratio 40.00%

36.67%

35.00%

Ratios

30.00% 25.00% 20.00%

20.84% 17.30%

16.20%

Return on total equity

15.00% 10.00%

4.45%

5.00% 0.00% 2004

2005

2006

2007

2008

Years

The amount of Net Profit after taxation in the year 2004 was Rs.314149 and the amount of Share Capital and Reserves in the first year 2004 was Rs.1939134 and the Return on total equity was 16.20% in the year 2004. And the amount of Net profit after taxation increases to Rs.510493 in the year 2005 with an increment of Rs.196344 and the amount of Share Capital and Reserves becomes Rs.2449624 in the year 2005 with increment of Rs.510490 and the Return on total equity becomes 20.84% in the year 2005. And the amount of Net profit after taxation increases to Rs.1203739 in the year 2006 with an increment of Rs.693246 and the amount of Share Capital and Reserves becomes Rs.3282616 in the year 2006 with increment of Rs.832992 and the Return on total equity becomes 36.67% in the year 2006.

149

And the amount of Net profit after taxation decreases to Rs.646323 in the year 2007 with decrement of Rs.557416 and the amount of Share Capital and Reserves becomes Rs.3735206 in the year 2007 with increment of Rs.452590 and the Return on total equity becomes 17.30% in the year 2007. And the amount of Net profit after taxation decreases to Rs.413598 in the year 2008 with decrement of Rs.232725 and the amount of Share Capital and Reserves becomes Rs.9283981 in the year 2008 with increment of Rs.5548775 and the Return on total equity becomes 4.45% in the year 2008

Earning Per Common Share =

netincome − preferreddividend weightaveragenoofcommonshareouts tan ding

Fauji Cement Company Limited Ratio Analysis 2004 2005 2006 Earning per common share Net profit after taxation

0.85 314149 370743

No. of common shares

1.38 510493 370743

3.25 1203739 370743

2007

2008

1.73 646323 374473

0.85 413598 489456

Profitability Ratio 3.50

3.25

3.00

Ratios

2.50 2.00

1.73

1.50 1.00

Earning per common share

1.38 0.85

0.85

0.50 0.00 2004

2005

2006

2007

Years

150

2008

The amount of Net Profit after taxation in the year 2004 was Rs.314149 and the Number of common shares in the first year 2004 was 370743 and the Earning per common share was 0.85 in the year 2004. And the amount of Net profit after taxation increases to Rs.510493 in the year 2005 with an increment of Rs.196344 and the Number of common shares becomes 370743 in the year 2005 and the Earning per common share becomes 1.38 in the year 2005. And the amount of Net profit after taxation increases to Rs.1203739 in the year 2006 with an increment of Rs.693246 and the Number of common shares becomes 370743 in the year 2006 and the Earning per common share becomes 3.25 in the year 2006. And the amount of Net profit after taxation decreases to Rs.646323 in the year 2007 with decrement of Rs.557416 and the Number of common shares becomes 374473 in the year 2007 with increment of 3730 and the Earning per common share becomes 1.73 in the year 2007. And the amount of Net profit after taxation decreases to Rs.413598 in the year 2008 with decrement of Rs.232725 and the Number of common shares becomes 489456 in the year 2008 with increment of 114983 and the Earning per common share becomes 0.85 in the year 2008

Price/earning ratio =

Market Pr icePerCommonShare DilutedEPS

Fauji Cement Company Limited Ratio Analysis 2004 2005 Price/earning ratio

Market price Earning per share - Diluted

2006

2007

2008

18.89

10.48

6.75

13.17

20.91

14.15

12.76

19.38

20.09

16.06

0.75

1.22

2.87

1.53

0.77

151

Profitability Ratio 25.00 20.91

Ratios

20.00

18.89

15.00

13.17 Price/earning ratio

10.48 10.00

6.75

5.00 0.00 2004

2005

2006

2007

2008

Years

The market price in the year 2004 was Rs.14.15 and the Earning per share in the first year 2004 was 0.75 and Price/earning ratio was 18.89 in the year 2004. And the market price decreases to 12.76 in the year 2005 with decrement of 1.39 and the Earning per share becomes 1.22 in the year 2005 with increment of 0.47 and the Price/earning ratio becomes 10.48 in the year 2005. And the market price increases to 19.38 in the year 2006 with increment of 6.62 and the Earning per share becomes 2.87 in the year 2006 with increment of 1.65 and the Price/earning ratio becomes 6.75 in the year 2006. And the market price increases to 20.09 in the year 2007 with increment of 0.71 and the Earning per share becomes 1.53 in the year 2007 with decrement of 1.34 and the Price/earning ratio becomes 13.17 in the year 2007. And the market price decreases to 16.06 in the year 2008 with decrement of 4.03 and the Earning per share becomes 0.77 in the year 2008 with decrement of 0.76 and the Price/earning ratio becomes 20.91 in the year 2008.

Degree of financial leverage =

152

%changeinnetincome %chandeinEBIT

Fauji Cement Company Limited Ratio Analysis 2004 2005 2006 Degree of financial leverage Net profit after taxation Net profit before taxation

0.20 510493 759041

314149 -243290

0.68 1203739 1777690

2007

2008

0.56 646323 788180

0.70 413598 454564

Ratio Analysis 0.8 0.7

Ratios

0.6

Degree of financial leverage

0.5 0.4 0.3 0.2 0.1 0 2004

2005

2006

2007

Years

153

2008

154

SWOT Analysis Strengths o Capturing giant’s share in export market o Fauji Foundation Group becoming a key success factor o Sea route trading becoming a vital and cost efficient strategy o Consistency in clinker exports in Mid East and India

Weaknesses o Fuel costs to dampen the core earnings o Expansive export market inflating the distribution costs

Opportunities African Market proving to be a buffer after Indian demands Subsides

Threats o Excessive regional capacity posing threat o Cut in PSDP depressing local demand

155

156

BCG Matrix

157

The four segments of the BCG Matrix Placing products in the BCG matrix provides 4 categories in a portfolio of a company: •

Stars (high growth, high market share) o

Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash.

o

Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept.

•

Cash Cows (low growth, high market share) o

Profits and cash generation should be high. Because of the low growth, investments which are needed should be low.

o

Cash Cows are often the stars of yesterday and they are the foundation of a company.

•

•

Dogs (low growth, low market share) o

Avoid and minimize the number of Dogs in a company.

o

Watch out for expensive ‘rescue plans’.

o

Dogs must deliver cash, otherwise they must be liquidated.

Question Marks (high growth, low market share) o

Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share.

o

If the market share remains unchanged, Question Marks will simply absorb great amounts of cash.

o

Either invests heavily, or sells off, or invests nothing and generates any cash that you can. Increase market share or deliver cash.

The BCG Matrix and one size fits all strategies

158

The BCG Matrix method can help to understand a frequently made strategy mistake: having a one size fits all strategy approach, such as a generic growth target (9 percent per year) or a generic return on capital of say 9,5% for an entire corporation. In such a scenario: •

Cash Cows Business Units will reach their profit target easily. Their management has an easy job. The executives are often praised anyhow. Even worse, they are often allowed to reinvest substantial cash amounts in their mature businesses.

•

Dogs Business Units are fighting an impossible battle and, even worse, now and then investments are made. These are hopeless attempts to "turn the business around".

•

As a result all Question Marks and Stars receive only mediocre investment funds. In this way they can never become Cash Cows. These inadequate invested sums of money are a waste of money. Either these SBUs should receive enough investment funds to enable them to achieve a real market dominance and become Cash Cows (or Stars), or otherwise companies are advised to disinvest. They can then try to get any possible cash from the Question Marks that were not selected.

Other uses and benefits of the BCG Matrix •

If a company is able to use the experience curve to its advantage, it should be able to manufacture and sell new products at a price that is low enough to get early market share leadership. Once it becomes a star, it is destined to be profitable.

•

BCG model is helpful for managers to evaluate balance in the firm’s current portfolio of Stars, Cash Cows, Question Marks and Dogs.

•

BCG method is applicable to large companies that seek volume and experience effects.

•

The model is simple and easy to understand.

•

It provides a base for management to decide and prepare for future actions.

Limitations of the BCG Matrix

159

Some limitations of the Boston Consulting Group Matrix include: •

It neglects the effects of synergy between business units.

•

High market share is not the only success factor.

•

Market growth is not the only indicator for attractiveness of a market.

•

Sometimes Dogs can earn even more cash as Cash Cows.

•

The problems of getting data on the market share and market growth.

•

There is no clear definition of what constitutes a "market".

•

A high market share does not necessarily lead to profitability all the time.

•

The model uses only two dimensions – market share and growth rate. This may tempt management to emphasize a particular product, or to divest prematurely.

•

A business with a low market share can be profitable too.

•

The model neglects small competitors that have fast growing market shares.

As long as the BCG Matrix of Fauji Cement Company Limited is concerned, because the company is out of danger zone that is why it lies in the category of Question Mark of BCG Matrix. The reason for lying in the Question Mark field is that because the company is growing well but it is not capturing high market share because of others cement companies like D.G. Khan Cement and Lucky Cement etc.

160

161

162

163

164

165

Conclusion I foresee growth in earrings of cement companies in the years to come. Similarly the said position will be with FCC. I expect positive earnings of FCCL in the coming years; currently we maintain our stance by recommend “BUY” on FCCL.

166

167

Recommendations We recommend “BUY” for the scrip, although we are bullish viewing that most of the cement stock often trade below the sector PER and this is also true for Fauji Cement, but as far as growth sector is concerned our stance for fauji cement is neutral, even though the stock market is currently not at bullish, fauji cement is out of danger zone as they have reprofiled its debts which ultimately reduce its cost of borrowings thus, moving towards sound fundamentals.

168

169

Annexure Balance Sheet Fauji Cement Company Limited Balance Sheet As on December….. 2004 CURRENT ASSETS Cash and bank balances Deposit accounts Current accounts Collection accounts Cash in hand Advances, Deposits, prepayments and other receivables: To suppliers To employees Due from associated undertaking - unsecured Deposits Prepayments Excise duty Advance tax -net Sales tax refundable -net Derivative foreign currency options used as hedging instrument Interest accrued Prepaid arrangement fee for loans Margin on letters of credit Other receivables- Considered goods

170

RS(000) 2005

574460 1172765 197088 603110 137433 560177 21326 25840 38275 16831 54 262 73583 46041 34044 18148 449 783 1127 1125 1313 1486 10606 4314 9911 3057 0 7891 3774 0 0 0 2175 1002 0 0 0 0 645 8235

2006 157938 2 847590 798122 49253 0 215 70340 31523 1639 3190 1865 9937 0 13874 0 0 5476 0 0 2836

2007 195352 7 423133 402907 20048 0 178 858758 815588 621 0 1795 3125 0 13104 0 0 5077 11000 0 2084

2008 5294083 3783909 3756611 27039 0 259 345567 15521 2473 0 5737 3966 0 23302 82719 84364 14828 74670 29369 7179

Others TRADE DEBTS Unsecured Considered goods Considered doubtful Secure-considered goods Less: Provision for doubtful debts STOCK IN TRADE Raw and packing material Work in process Finished goods STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools DEFERRED TAX ASSETS - NET LONG TERM DEPOSITS Islamabad Electric Supply Company Limited Sui Northern Gas Pipelines Limited LONG TERM ADVANCES - Considered goods Sui Northern Gas Pipelines Limited Less: Amount receivables within 12 months shown under current assets FIXED ASSETS - Tangible: Property, Plant and equipment Total Assets

CURRENT LIABILITIES Current portion of long term financing: Short term borrowings - secured: Markup accrued: Trade and other payables: Creditors Accrued liabilities Retention money Security deposits Advances from customers Workers' (Profit) Participation Fund Workers' Welfare fund 171

9539 44789 23833 22266 1567 22523 -1567 61600 15224 27761 18615 197400 71837 118324 7239 570039 36600 21600 15000 0 0

0 107231 25021 23454 1567 83777 -1567 55931 18469 11624 25838 360452 107633 244514 8305 337140 46611 21600 25011 9000 0

0 25475 27042 25475 1567 0 -1567 145090 28012 93671 23407 490887 198485 280183 12219 0 46611 21600 25011 9000 0

6364 19558 16117 7769 8348 11789 -8348 183309 23931 115221 44157 468769 61997 394046 12726 0 46611 21600 25011 8100 9000

1439 26927 4848 0 4848 26927 -4848 230089 31271 152529 46289 907591 415358 478579 13654 0 46611 21600 25011 7200 8100

0 472925 4 472925 4 591035 3

0 0 465827 2 4563115 465827 2 4563115 622378 619810 8 8

-900 439245 0 439245 0 640068 8

-900

12454493

372116 86508 0 13132 272476 45651 63425 10819 25462 23121 0 0

120694 6 552995 308876 69357 275718 45969 67119 10533 28982 42444 39949 0

144228 7 550000 375510 48330 468447 81766 118828 11986 39051 67770 41483 16085

2454761 550000 1378365 33186 493210 65997 174692 15517 36916 41344 24413 25362

126719 8 550000 236353 59771 421074 59763 63470 12843 37986 58744 93562 0

7106599 7106599

Sales tax payable- net Excise duty payable Other liabilities Compensated absences Unclaimed dividend

22304 58 81636 0 0 359910 3 0 0 40264 355883 9

31300 3537 5885 0 0 256721 8 0 0 45213 252200 5

39235 10264 9052 33990 2165 164829 4 0 215381 7912 142500 1

32599 8582 40708 3626 5963 122319 5 0 339918 8277

715751 18129 363154 9468

875000

325000

916667 916667 458333 458333 0 275000

598485 598485 299243 299243 0 179545

431818 431818 215909 215909 129546 0

265152 265152 132576 132576 79544 0

0 291549 2

0 266548 2

0

397121 9

50000 377416 4

-550000 328261 6 0

-550000 373520 6 -459216

Share capital:

193913 4 0 -225528 8 419442 2

-552995 244962 4 0 -174479 8 419442 2

-911806 419442 2

0 419442 2

7419887

Total Liabilities + Owner's Equity

591035 3

622378 8

619810 8

640068 8

12454493

NON - CURRENT LIABILITIES Retention money payables: Deferred tax liability - net: Deferred liability Long term financing: Loans from banking companies - Secured: Habib Bank Limited MCB Bank Limited United Bank Limited Bank Al Falah Limited NIB Bank Limited PICIC Commercial Bank Limited Loan from related party: Fauji Foundation- Unsecured Total Liabilities Less: amount payable within 12 months shown under current liabilities SHARE CAPITAL AND RESERVES Reserves: Accumulated loss

172

0 57629 45323 3686 2331

3170512 -550000 9283981 1864094 0

Income Statement Fauji Cement Company Limited Income Statement For the Year Ended June…… RS(000) 2004 2005 2006 324726 392136 568345 Sales 2 2 5 -107621 -139731 Less: Government Levies -951031 9 7 229623 284514 428613 Net Sales 1 3 8 155540 176356 209502 Less: Cost of sales 7 7 7 Raw material Consumed 115164 136819 205751 Packing material consumed 155487 147994 182873 Stores and spares consumed 5285 6573 6052 Spares written off 0 0 18528 Salaries, wages and benefits 91289 87091 142070 Rent, rates and taxes 952 1378 2562 Insurance 14920 18078 12689

173

2007 478003 6 -131675 3 346328 3 237178 8 235379 221116 11171 931 133780 2213 12363

2008 4749217 -120331 5 3545902 2887790 227413 281916 10914 0 133451 5284 12221

Fuel consumed Power consumed Depreciation Others

Add: Opening work-in-process Less: Closing work-in-process Cost of goods manufactured Add: Opening finished goods Less: Closing finished goods

Less: Own consumption capitalized

Gross profit Other income Distribution cost: Salaries, wages and benefits Export freight and other charges Traveling and entertainment Vehicle running and maintenance expenses Rent, rates and taxes Repairs and maintenance Printing and stationery Depreciation Others Administrative expenses: Salaries, wages and benefits Traveling and entertainment Vehicle running and maintenance expenses Insurance Rent, rates and taxes Repairs and maintenance Printing and stationery Depreciation Others Other Operating expenses: Audits' remuneration Workers' (Profit) Participation Fund Workers' Welfare Fund

564591 310041 243056 63185 156397 0 5817 -27761 154202 6 31996 -18615 155540 7 0 155540 7 740824 42744 20416 12011 0 1034 0 1144 411 509 781 4526 39535 21817 2053 0 312 1064 711 856 1969 10753 533 533 0 0 174

699818 332383 251981 72538 175465 3 27761 -11624 177079 0 18615 -25838 176356 7 0 176356 7 108157 6 11216 21333 11085 0 1857 0 1172 872 640 734 4973 42292 21835 3319 0 356 1250 1110 868 3568 9986 40493 544 39949 0

843909 393785 261566 104859 217464 4 11624 -93671 209259 7 25838 -23408 209502 7 0 209502 7 2191111 43323 31694 21388 0 1488 0 1112 625 403 1083 5595 66627 35663 4769 0 532 4302 2304 1463 3883 13711 94127 565 93562 0

979044 431609 276244 110238 241408 8 93671 -115221 239253 8 23407 -44157 237178 8 0 237178 8 109149 5 73835 40645 20651 0 705 2745 1353 173 416 1746 12856 71302 42439 3487 2385 594 5934 960 1941 5464 8098 58098 530 41483 16085

1441919 451419 290477 85730 2940744 115221 -152529 2903436 44157 -46289 2901304 -13514 2887790 658112 107574 53383 18791 24482 1127 1641 1468 288 545 2704 2337 76495 41153 7483 2145 602 6465 590 1318 9475 7264 34290 600 24413 9277

Finance Cost: Fee and charges on loans Interest/mark-up on long term finance Interest/mark-up on long term loan from related party Interest on short term borrowings and other charges Interest on Workers' Profit Participation Fund Guarantee commission Bank charges and commission Foreign exchange risk insurance(FERI) contract Amortization of deferred cost

204222 11615 57324

229633 10564 175784

264296 500 254030

207105 500 200642

146954 500 129928

873

3185

456

0

0

0 0 111947 4557

4352 0 32201 3547

1095 2972 483 4760

779 93 972 4119

11609 0 665 4252

17906 762152

0 0

0 0

0 0

Net profit before taxation Less: Taxation

-243290 557439

759041 -248548

788180 -141857

454564 -40966

Net profit after taxation

314149

510493

0 0 177769 0 -573951 120373 9

646323

413598

2006

2007

2008

274.93%

340.06%

921.58%

430.06% 580.74% 230.95% 0.00%

214.69% 293.17% 94.01% 0.00%

1919.91% 2733.41% 126.79% 0.00%

Balance Sheet (Trend Analysis) Fauji Cement Company Limited Balance Sheet (Trend Analysis) As on December….. RS(000) 2004 2005 100.00 CURRENT ASSETS % 204.15% 100.00 Cash and bank balances % 306.01% Deposit accounts 100.00% 407.60% Current accounts 100.00% 121.17% Collection accounts 100.00% 43.97%

175

Cash in hand Advances, Deposits, prepayments and other receivables: To suppliers To employees Due from associated undertaking - unsecured Deposits Prepayments Excise duty Advance tax -net Sales tax refundable -net Derivative foreign currency options used as hedging instrument Interest accrued Prepaid arrangement fee for loans Margin on letters of credit Other receivables- Considered goods Others TRADE DEBTS Unsecured Considered goods Considered doubtful Secure-considered goods Less: Provision for doubtful debts STOCK IN TRADE Raw and packing material Work in process Finished goods STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools DEFERRED TAX ASSETS - NET LONG TERM DEPOSITS Islamabad Electric Supply Company Limited Sui Northern Gas Pipelines Limited LONG TERM ADVANCES - Considered goods Sui Northern Gas Pipelines Limited Less: Amount receivables within 12 months shown under current assets

100.00% 100.00 % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

485.19%

398.15%

329.63%

479.63%

100.00%

62.57% 53.31% 174.39% 99.82% 113.18% 40.68% 30.84% 100.00% 0.00%

95.59% 92.59% 365.03% 283.05% 142.04% 93.69% 0.00% 175.82% 0.00%

1167.06% 2395.69% 138.31% 0.00% 136.71% 29.46% 0.00% 166.06% 0.00%

100.00%

46.07%

251.77%

233.43% 100.00%

469.63% 45.59% 550.78% 0.00% 436.94% 37.39% 0.00% 295.30% 2191.81% 100.00% 681.75% 678.82% 100.00%

1276.74 % 0.00%

439.69% 0.00%

323.10% 66.72%

1113.02% 15.09%

239.41%

56.88%

43.67%

60.12%

104.98% 105.34% 100.00% 371.96% 100.00%

113.46% 114.41% 100.00% 0.00% 100.00%

67.62% 34.89% 532.74% 52.34% 532.74%

20.34% 0.00% 309.38% 119.55% 309.38%

90.80% 121.32% 41.87% 138.80%

235.54% 184.00% 337.42% 125.74%

297.58% 157.19% 415.05% 237.21%

373.52% 205.41% 549.44% 248.67%

182.60% 149.83% 206.65% 114.73%

248.68% 276.30% 236.79% 168.79%

237.47% 86.30% 333.02% 175.80%

459.77% 578.20% 404.46% 188.62%

59.14%

0.00%

0.00%

0.00%

127.35% 100.00% 166.74% 100.00%

127.35% 100.00% 166.74% 100.00%

127.35% 100.00% 166.74% 90.00% 100.00% 100.00%

127.35% 100.00% 166.74% 80.00% 90.00% 100.00%

98.50% 98.50%

96.49% 96.49%

92.88% 92.88%

150.27% 150.27%

105.30%

104.87%

108.30%

210.72%

100.00% 100.00% 100.00 % 100.00 % 100.00% 100.00% 100.00% 100.00% 100.00 % 100.00% 100.00% 100.00% 100.00 % 100.00% 100.00% 100.00% 100.00 % 100.00 % 100.00% 100.00%

100.00 % 100.00% 100.00 %

FIXED ASSETS - Tangible: Property, Plant and equipment Total Assets

176

100.00 % 100.00 %

CURRENT LIABILITIES Current portion of long term financing: Short term borrowings - secured:

324.35%

340.54%

387.59%

659.68%

639.24% 100.00%

635.78% 76.52%

635.78% 121.57%

635.78% 446.25%

528.15%

455.16%

368.03%

252.71%

101.19% 100.70% 105.82% 97.36% 113.82% 183.57% 100.00%

154.54% 130.91% 100.07% 118.71% 149.19% 254.07% 234.20% 175.91% 17696.55 % 11.09% 100.00% 100.00%

181.01% 144.57% 275.43% 143.42% 144.98% 178.82% 61.11% 157.67% 0.00%

100.00% 100.00%

140.33% 6098.28 % 7.21%

171.92% 179.11% 187.35% 110.79% 153.37% 293.11% 103.84% 100.00% 146.16% 14796.55 % 49.87% 10.67% 275.43%

100.00 %

71.33%

45.80%

33.99%

100.00%

157.82%

19.89% 100.00% 168.61%

112.29%

19.65%

20.56%

23.51%

70.87%

40.04%

24.59%

9.13%

100.00% 100.00% 100.00% 100.00%

65.29% 65.29% 65.29% 65.29%

100.00%

65.29%

47.11% 47.11% 47.11% 47.11% 100.00% 0.00%

28.93% 28.93% 28.93% 28.93% 61.40% 0.00%

100.00% 100.00%

0.00% 99.46%

0.00% 99.46%

0.00% 99.46%

126.33%

169.28%

192.62% 100.00%

478.77% -405.93%

100.00 % 100.00 % 100.00% 100.00% 100.00% 100.00% 100.00%

Markup accrued: Trade and other payables: Creditors Accrued liabilities Retention money Security deposits Advances from customers Workers' (Profit) Participation Fund Workers' Welfare fund Sales tax payable- net

100.00%

Excise duty payable Other liabilities Compensated absences Unclaimed dividend NON - CURRENT LIABILITIES Retention money payables: Deferred tax liability - net: Deferred liability Long term financing: Loans from banking companies - Secured: Habib Bank Limited MCB Bank Limited United Bank Limited Bank Al Falah Limited NIB Bank Limited PICIC Commercial Bank Limited Loan from related party: Fauji Foundation- Unsecured Less: amount payable within 12 months shown under current liabilities

100.00 % 100.00 %

100.00 %

SHARE CAPITAL AND RESERVES Reserves:

99360.34% 55.52% 10.84% 107.67%

77.36%

40.43%

0.00%

0.00%

Share capital:

100.00 % 100.00 %

100.00%

100.00%

100.00%

176.90%

Total Liabilities + Owner's Equity

100.00 %

105.30%

104.87%

108.30%

210.72%

Accumulated loss

177

Balance Sheet (Vertical Analysis) Fauji Cement Company Limited Balance Sheet (Vertical Analysis) As on December….. RS(000) 2004 2005 CURRENT ASSETS 9.72% 18.84% Cash and bank balances 3.33% 9.69% Deposit accounts 2.33% 9.00% Current accounts 0.36% 0.42% Collection accounts 0.65% 0.27% Cash in hand 0.00% 0.00% Advances, Deposits, prepayments and other receivables: 1.24% 0.74% To suppliers 0.58% 0.29% To employees 0.01% 0.01% Due from associated undertaking - unsecured 0.02% 0.02% Deposits 0.02% 0.02% Prepayments 0.18% 0.07% Excise duty 0.17% 0.05% Advance tax -net 0.00% 0.13% Sales tax refundable -net 0.06% 0.00% Derivative foreign currency options used as hedging instrument 0.00% 0.00% Interest accrued 0.04% 0.02% Prepaid arrangement fee for loans 0.00% 0.00% Margin on letters of credit 0.00% 0.00% Other receivables- Considered goods 0.01% 0.13% Others 0.16% 0.00% TRADE DEBTS 0.76% 1.72% Unsecured 0.40% 0.40% Considered goods 0.38% 0.38% Considered doubtful 0.03% 0.03% Secure-considered goods 0.38% 1.35% Less: Provision for doubtful debts -0.03% -0.03% STOCK IN TRADE 1.04% 0.90% Raw and packing material 0.26% 0.30% Work in process 0.47% 0.19% Finished goods 0.31% 0.42% STORES, SPARES AND LOOSE TOOLS 3.34% 5.79% Stores 1.22% 1.73% Spares 2.00% 3.93% Loose tools 0.12% 0.13% DEFERRED TAX ASSETS - NET 9.64% 5.42% LONG TERM DEPOSITS 0.62% 0.75% Islamabad Electric Supply Company Limited 0.37% 0.35% Sui Northern Gas Pipelines Limited 0.25% 0.40% LONG TERM ADVANCES - Considered goods 0.00% 0.14%

178

2006 25.48% 13.67% 12.88% 0.79% 0.00% 0.00% 1.13% 0.51% 0.03% 0.05% 0.03% 0.16% 0.00% 0.22% 0.00% 0.00% 0.09% 0.00% 0.00% 0.05% 0.00% 0.41% 0.44% 0.41% 0.03% 0.00% -0.03% 2.34% 0.45% 1.51% 0.38% 7.92% 3.20% 4.52% 0.20% 0.00% 0.75% 0.35% 0.40% 0.15%

2007 30.52% 6.61% 6.29% 0.31% 0.00% 0.00% 13.42% 12.74% 0.01% 0.00% 0.03% 0.05% 0.00% 0.20% 0.00% 0.00% 0.08% 0.17% 0.00% 0.03% 0.10% 0.31% 0.25% 0.12% 0.13% 0.18% -0.13% 2.86% 0.37% 1.80% 0.69% 7.32% 0.97% 6.16% 0.20% 0.00% 0.73% 0.34% 0.39% 0.13%

2008 42.51% 30.38% 30.16% 0.22% 0.00% 0.00% 2.77% 0.12% 0.02% 0.00% 0.05% 0.03% 0.00% 0.19% 0.66% 0.68% 0.12% 0.60% 0.24% 0.06% 0.01% 0.22% 0.04% 0.00% 0.04% 0.22% -0.04% 1.85% 0.25% 1.22% 0.37% 7.29% 3.34% 3.84% 0.11% 0.00% 0.37% 0.17% 0.20% 0.06%

Sui Northern Gas Pipelines Limited Less: Amount receivables within 12 months shown under current assets FIXED ASSETS - Tangible: Property, Plant and equipment Total Assets CURRENT LIABILITIES Current portion of long term financing: Short term borrowings - secured: Markup accrued: Trade and other payables: Creditors Accrued liabilities Retention money Security deposits Advances from customers Workers' (Profit) Participation Fund Workers' Welfare fund Sales tax payable- net Excise duty payable Other liabilities Compensated absences Unclaimed dividend NON - CURRENT LIABILITIES Retention money payables: Deferred tax liability - net: Deferred liability Long term financing: Loans from banking companies - Secured: Habib Bank Limited MCB Bank Limited United Bank Limited Bank Al Falah Limited NIB Bank Limited PICIC Commercial Bank Limited Loan from related party: Fauji Foundation- Unsecured Less: amount payable within 12 months shown under current liabilities SHARE CAPITAL AND RESERVES Reserves: Accumulated loss Share capital:

Total Liabilities + Owner's Equity

179

0.00% 0.00% 80.02% 80.02% 100.00 %

0.00% 0.00% 74.85% 74.85% 100.00 %

0.00% 0.00% 73.62% 73.62% 100.00 %

0.14% -0.01% 68.62% 68.62% 100.00 %

0.07% -0.01% 57.06% 57.06% 100.00%

6.30% 1.46% 0.00% 0.22% 4.61% 0.77% 1.07% 0.18% 0.43% 0.39% 0.00% 0.00% 0.38% 0.00% 1.38% 0.00% 0.00% 60.89% 0.00% 0.00% 0.68% 60.21%

19.39% 8.89% 4.96% 1.11% 4.43% 0.74% 1.08% 0.17% 0.47% 0.68% 0.64% 0.00% 0.50% 0.06% 0.09% 0.00% 0.00% 41.25% 0.00% 0.00% 0.73% 40.52%

20.44% 8.87% 3.81% 0.96% 6.79% 0.96% 1.02% 0.21% 0.61% 0.95% 1.51% 0.00% 0.63% 0.17% 0.15% 0.55% 0.03% 26.59% 0.00% 3.47% 0.13% 22.99%

22.53% 8.59% 5.87% 0.76% 7.32% 1.28% 1.86% 0.19% 0.61% 1.06% 0.65% 0.25% 0.51% 0.13% 0.64% 0.06% 0.09% 19.11% 0.00% 5.31% 0.13% 13.67%

19.71% 4.42% 11.07% 0.27% 3.96% 0.53% 1.40% 0.12% 0.30% 0.33% 0.20% 0.20% 0.00% 0.46% 0.36% 0.03% 0.02% 5.75% 0.15% 2.92% 0.08% 2.61%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

14.73% 14.73% 7.36% 7.36% 0.00% 4.42%

9.66% 9.66% 4.83% 4.83% 0.00% 2.90%

6.75% 6.75% 3.37% 3.37% 2.02% 0.00%

2.13% 2.13% 1.06% 1.06% 0.64% 0.00%

0.00% 0.00% 32.81% 0.00% -38.16% 70.97%

0.80% -8.89% 39.36% 0.00% -28.03% 67.39%

0.00% -8.87% 52.96% 0.00% -14.71% 67.67%

0.00% -8.59% 58.36% -7.17% 0.00% 65.53%

0.00% -4.42% 74.54% 14.97% 0.00% 59.58%

100.00 %

100.00 %

100.00 %

100.00 %

100.00%

Income Statement (Trend Analysis) Fauji Cement Company Limited Income Statement (Trend Analysis) For the Year Ended June…… RS(000) 2004 2005 2006 Sales 100.00% 120.76% 175.02% Less: Government Levies 100.00% 113.16% 146.93% 100.00 Net Sales % 123.90% 186.66% 100.00 Cost of sales % 113.38% 134.69% Raw material Consumed 100.00% 118.80% 178.66% Packing material consumed 100.00% 95.18% 117.61% Stores and spares consumed 100.00% 124.37% 114.51% Spares written off 100.00% Salaries, wages and benefits 100.00% 95.40% 155.63% Rent, rates and taxes 100.00% 144.75% 269.12% Insurance 100.00% 121.17% 85.05% Fuel consumed 100.00% 123.95% 149.47% Power consumed 100.00% 107.21% 127.01% Depreciation 100.00% 103.67% 107.62% Others 100.00% 114.80% 165.96% 100.00% 112.19% 139.05% Add: Opening work-in-process 100.00% 477.24% 199.83% Less: Closing work-in-process 100.00% 41.87% 337.42% 100.00 Cost of goods manufactured % 114.84% 135.70% Add: Opening finished goods 100.00% 58.18% 80.75% Less: Closing finished goods 100.00% 138.80% 125.75% 100.00% 113.38% 134.69% Less: Own consumption capitalized 100.00% 113.38% 134.69% 100.00 Gross profit % 146.00% 295.77% 100.00 Other income % 26.24% 101.35% 100.00 Distribution cost: % 104.49% 155.24% Salaries, wages and benefits 100.00% 92.29% 178.07% Export freight and other charges Traveling and entertainment 100.00% 179.59% 143.91% Vehicle running and maintenance expenses 180

2007 147.20% 138.46%

2008 146.25% 126.53%

150.82%

154.42%

152.49% 204.39% 142.21% 211.37% 5.02% 146.55% 232.46% 82.86% 173.41% 139.21% 113.65% 174.47% 154.36% 1610.30% 415.05%

185.66% 197.47% 181.31% 206.51% 0.00% 146.19% 555.04% 81.91% 255.39% 145.60% 119.51% 135.68% 188.03% 1980.76% 549.44%

155.16% 73.16% 237.21% 152.49% 152.49%

188.29% 138.01% 248.67% 186.53% 100.00% 185.66%

147.34%

88.84%

172.74%

251.67%

199.08% 171.93%

261.48% 156.45% 100.00% 108.99% 59.78%

68.18% 100.00%

Rent, rates and taxes Repairs and maintenance Printing and stationery Depreciation Others Administrative expenses: Salaries, wages and benefits Traveling and entertainment Vehicle running and maintenance expenses Insurance Rent, rates and taxes Repairs and maintenance Printing and stationery Depreciation Others Other Operating expenses: Audits' remuneration Workers' (Profit) Participation Fund Workers' Welfare Fund Finance Cost: Fee and charges on loans Interest/mark-up on long term finance Interest/mark-up on long term loan from related party Interest on short term borrowings and other charges Interest on Workers' Profit Participation Fund Guarantee commission Bank charges and commission Foreign exchange risk insurance(FERI) contract Amortization of deferred cost Net profit before taxation Less: Taxation Net profit after taxation

100.00% 100.00% 100.00% 100.00% 100.00% 100.00 % 100.00% 100.00%

102.45% 212.17% 125.74% 93.98% 109.88%

97.20% 152.07% 79.17% 138.67% 123.62%

118.27% 42.09% 81.73% 223.56% 284.05%

106.97% 100.08% 161.67%

168.53% 163.46% 232.29%

114.10% 117.48% 156.12% 101.40% 181.21% 92.87% 7597.19 % 102.06% 100.00%

170.51% 404.32% 324.05% 170.91% 197.21% 127.51% 17659.85 % 106.00% 234.20%

180.35% 193.49% 194.52% 188.63% 169.85% 364.49% 100.00% 89.94% 190.38% 192.95% 557.71% 607.61% 135.02% 82.98% 226.75% 153.97% 277.50% 481.21% 75.31% 67.55% 10900.19 % 6433.40% 99.44% 112.57% 103.84% 61.11% 100.00% 57.67%

100.00 % 100.00% 100.00%

112.44% 90.95% 306.65%

129.42% 4.30% 443.15%

101.41% 4.30% 350.01%

71.96% 4.30% 226.66%

100.00%

364.83%

52.23%

0.00%

0.00%

100.00% 28.76% 77.84% 0.00%

25.16% 100.00% 0.43% 104.45% 0.00%

17.90% 3.13% 0.87% 90.39% 0.00%

266.75% 0.00% 0.59% 93.31% 0.00%

0.00%

0.00%

0.00%

0.00%

-311.99% -44.59%

-730.69% -102.96%

-323.97% -25.45%

-186.84% -7.35%

162.50%

383.17%

205.74%

131.66%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00 % 100.00%

100.00% 100.00% 100.00% 100.00 % 100.00 % 100.00% 100.00 %

181

128.32% 70.07% 107.07% 346.22% 51.63%

Income Statement (Vertical Analysis) Fauji Cement Company Limited Income Statement (Vertical Analysis) For the Year Ended June…… RS(000) 2004 2005 2006 100.00 100.00 100.00 Sales % % % Less: Government Levies -29.29% -27.45% -24.59% Net Sales 70.71% 72.55% 75.41% Less: Cost of sales 47.90% 44.97% 36.86% Raw material Consumed 3.55% 3.49% 3.62% Packing material consumed 4.79% 3.77% 3.22% Stores and spares consumed 0.16% 0.17% 0.11% Spares written off 0.00% 0.00% 0.33% Salaries, wages and benefits 2.81% 2.22% 2.50% Rent, rates and taxes 0.03% 0.04% 0.05% Insurance 0.46% 0.46% 0.22% Fuel consumed 17.39% 17.85% 14.85% Power consumed 9.55% 8.48% 6.93% Depreciation 7.48% 6.43% 4.60% Others 1.95% 1.85% 1.84% 48.16% 44.75% 38.26% Add: Opening work-in-process 0.18% 0.71% 0.20% Less: Closing work-in-process -0.85% -0.30% -1.65% Cost of goods manufactured 47.49% 45.16% 36.82% Add: Opening finished goods 0.99% 0.47% 0.45% Less: Closing finished goods -0.57% -0.66% -0.41% 47.90% 44.97% 36.86% Less: Own consumption capitalized 0.00% 0.00% 0.00% 47.90% 44.97% 36.86% Gross profit 22.81% 27.58% 38.55%

182

2007 100.00 % -27.55% 72.45% 49.62% 4.92% 4.63% 0.23% 0.02% 2.80% 0.05% 0.26% 20.48% 9.03% 5.78% 2.31% 50.50% 1.96% -2.41% 50.05% 0.49% -0.92% 49.62% 0.00% 49.62% 22.83%

2008 100.00% -25.34% 74.66% 60.81% 4.79% 5.94% 0.23% 0.00% 2.81% 0.11% 0.26% 30.36% 9.51% 6.12% 1.81% 61.92% 2.43% -3.21% 61.14% 0.93% -0.97% 61.09% -0.28% 60.81% 13.86%

Other income Distribution cost: Salaries, wages and benefits Export freight and other charges Traveling and entertainment Vehicle running and maintenance expenses Rent, rates and taxes Repairs and maintenance Printing and stationery Depreciation Others Administrative expenses: Salaries, wages and benefits Traveling and entertainment Vehicle running and maintenance expenses Insurance Rent, rates and taxes Repairs and maintenance Printing and stationery Depreciation Others Other Operating expenses: Audits' remuneration Workers' (Profit) Participation Fund Workers' Welfare Fund Finance Cost: Fee and charges on loans Interest/mark-up on long term finance Interest/mark-up on long term loan from related party Interest on short term borrowings and other charges Interest on Workers' Profit Participation Fund Guarantee commission Bank charges and commission Foreign exchange risk insurance(FERI) contract Amortization of deferred cost Net profit before taxation Less: Taxation Net profit after taxation

1.32% 0.63% 0.37% 0.00% 0.03% 0.00% 0.04% 0.01% 0.02% 0.02% 0.14% 1.22% 0.67% 0.06% 0.00% 0.01% 0.03% 0.02% 0.03% 0.06% 0.33% 0.02% 0.02% 0.00% 0.00% 6.29% 0.36% 1.77%

0.29% 0.54% 0.28% 0.00% 0.05% 0.00% 0.03% 0.02% 0.02% 0.02% 0.13% 1.08% 0.56% 0.08% 0.00% 0.01% 0.03% 0.03% 0.02% 0.09% 0.25% 1.03% 0.01% 1.02% 0.00% 5.86% 0.27% 4.48%

0.76% 0.56% 0.38% 0.00% 0.03% 0.00% 0.02% 0.01% 0.01% 0.02% 0.10% 1.17% 0.63% 0.08% 0.00% 0.01% 0.08% 0.04% 0.03% 0.07% 0.24% 1.66% 0.01% 1.65% 0.00% 4.65% 0.01% 4.47%

1.54% 0.85% 0.43% 0.00% 0.01% 0.06% 0.03% 0.00% 0.01% 0.04% 0.27% 1.49% 0.89% 0.07% 0.05% 0.01% 0.12% 0.02% 0.04% 0.11% 0.17% 1.22% 0.01% 0.87% 0.34% 4.33% 0.01% 4.20%

2.27% 1.12% 0.40% 0.52% 0.02% 0.03% 0.03% 0.01% 0.01% 0.06% 0.05% 1.61% 0.87% 0.16% 0.05% 0.01% 0.14% 0.01% 0.03% 0.20% 0.15% 0.72% 0.01% 0.51% 0.20% 3.09% 0.01% 2.74%

0.03% 0.00% 0.00% 3.45% 0.14% 0.55% 23.47% -7.49% 17.17% 9.67%

0.08% 0.11% 0.00% 0.82% 0.09% 0.00% 0.00% 19.36% -6.34% 13.02%

0.01% 0.02% 0.05% 0.01% 0.08% 0.00% 0.00% 31.28% -10.10% 21.18%

0.00% 0.02% 0.00% 0.02% 0.09% 0.00% 0.00% 16.49% -2.97% 13.52%

0.00% 0.24% 0.00% 0.01% 0.09% 0.00% 0.00% 9.57% -0.86% 8.71%

183

Ratio Analysis

Net Working Capital Current Ratio Acid Ratio Cash Ratio Debt/Equity Ratio Debt to tangible net worth Day's Sales in account receivable Account Receivable Turn Over Day's sales in inventory Inventory turnover Net profit margin Total asset turnover Return on asset Operating income margin Return on Sales to fixed assets Return on total equity Gross profit margin Degree of financial leverage Earning per common share Price/earning ratio

2004 202344 1.54 1.38 0.53 3.05 3.05

2005 -34181 0.97 0.93 0.50 2.54 2.54 13.7565370 2 26.5328403 2

7.119486236 51.2677443 1 14.4553804 9 11.57586584 79.3434561 61.46396112 6 13.68% 17.94% 0.39 0.46 5.32% 8.20% 1.70% 34.75% 0.48553767 0.61077219 7 2 16.20% 20.84% 32.26% 38.01% 0.85 18.89

184

2006 312184 1.25 1.13 0.67 1.89 1.89 2.16940635 1 168.248792 9 25.2778842 5 85.0841489 7 28.08% 0.69 19.42% 47.64% 0.93930089 4 36.67% 51.12%

2007 511240 1.35 1.23 0.29 1.71 1.71 2.06124362 3 177.077564 2 28.2098505 4 70.2086318 2 18.66% 0.54 10.10% 28.74% 0.78846270 3 17.30% 31.52%

2008 2839322 2.16 2.06 1.54 1.34 1.34 2.771750319 131.6857429 29.08192251 63.85666586 11.66% 0.28 3.32% 16.96% 0.498959066 4.45% 18.56%

0.20

0.68

0.56

0.70

1.38 10.48

3.25 6.75

1.73 13.17

0.85 20.91

185

186

187