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Chakwal Cement Company Limited
Annual Report 2000
Contents
Company Information
Notice of Meeting
Directors' Report
Pattern of Shareholding
Auditors' Report
Balance Sheet
Statement of Changes in Financial Position (Cash Flow Statement)
Notes to the Accounts
COMPANY INFORMATION
BOARD OF DIRECTORS		Khawaja Mohammad Jawed			(Chief Executive)
		Khawaja Mohammad Jahangir
		Khawaja Mohammad Tanveer
		Palle-o-Jorgensen			(Nominee F.L.S)
		Khawaja Mohammad Nadeem
		Khawaja Mohammad Naveed
		Mr. Nasim Beg			(Nominee NIT)
COMPANY SECRETARY		Mr. Muhammad Anwar Sheikh
AUDITORS		M. Hussain Chaudhury & Co.
		Chartered Accountants
LEGAL ADVISORS		Cornelius Lane & Mufti
		Advocates and Solicitors
BANKERS		Citibank N. A
		Faysal Bank Limited
		Muslim Commercial Bank Limited
		National Bank of Pakistan
		Platinum Commercial Bank Limited
		Prime Commercial Bank Limited
		Standard Chartered Bank
REGISTERED OFFICE		7/1, E-3, Main Boulevard
		Gulberg-III, Lahore - Pakistan
		Tel :(042)5757108, 119
CORPORATE OFFICE AND		3 I-F, Main Market, Gulberg-II,
SHARES DEPARTMENT		Lahore - Pakistan
		Tel (042)5755774
PLANT SITE		Karuli Near Kallar Kahar
		District Chakwal - Pakistan
NOTICE OF 7TH ANNUAL GENERAL MEETING
NOTICE is hereby given that the 7th Annual General Meeting of the Shareholders of Chakwal Cement Com-
pany Limited will be held on Saturday, December 30, 2000 at 10:00 a.m. at 7-Happy Homes, 38-A, Main
Gulberg, Lahore to transact the following business:
1. To confirm the minutes of the last Annual General Meeting of the shareholders of the Company held on
December 31, 1999.
2. To receive and adopt the audited accounts of the company for the year ended June 30, 2000 and the reports
of Directors and Auditors thereon.
3. To elect eight directors as fixed by the Board for a term of three years in accordance with Section 178 of
the Companies Ordinance, 1984. The present directors who will be retiring are:
Khawaja Mohammad Jawed			Khawaja Mohammad Jahangir,
Khawaja Mohammad Tanveer			Khawaja Mohammad Nadeem
Khawaja Mohammad Naveed,			Palle-o-Jorgensen, Nominee F.L.Smidth
Mr. Naseem Baig, Nominee NIT,
4. To appoint Auditors for the year ending June 30, 2001 and to fix their remuneration.
5. To consider any other business which may be placed before the meeting with the permission of the Chain
				By Order of the Board
Lahore:				MUHAMMAD ANWAR SHEIKH
December 08, 2000				Corporate Secretary
Notes:
1. The share transfer books of the Company shall remain closed from December 29, 2000 to January 05,2001
(both days inclusive).
2. Any member who seeks to contest the election to the office of Directors should file with the Company,
not later than 14 days before the date of the meeting at which elections are to be held, a notice of his
intention to offer himself for election as a Director along with written consent to act as a Director.
3. A member entitled to attend and vote at this meeting may appoint another member as his/her proxy to attend
the meeting and vote instead of him/her. Proxies in order to be effective must be received by the Company
not later than 48 hours before the meeting.
4. Any individual Beneficial Owner of CDC, entitled to attend and vote at this meeting, must bring his/her NIC
or Passport to prove his/her identity, and in case of Proxy must enclose an attested copy of his/her NIC or
Passport. Representative of corporate members should bring the usual documents required for such purpose.
5. Shareholders are requested to promptly notify the Company of any change in their addresses.
DIRECTORS' REPORT TO THE SHAREHOLDERS
The Directors of the company present before you their report together with the audited accounts of the
company for the year ended June 30, 2000.
As reported previously, the company is exploring all avenues to salvage the project. The project has suffered
tremendously owing to the non-disbursement of committed funds and levy of unjust duties and taxes, conse-
quently cost over runs incurred on the project. The Directors have been striving hard to complete the project.
In this connection the Company has also acquired services of a reputable brokerage house for financial
restructuring of the project and identifying an investor for the project. The Directors are making all efforts in
putting the project back on rails so that the huge investment could be salvaged, however due to uncertain
economic conditions and slump in cement industry the task is becoming increasingly difficult
Your Directors have also approached the Government for assistance and have again requested for waiver on
demurrage and other charges as well as restoration of custom duties and taxes as were applicable at the time
of import of machinery. The Government has allowed partial waiver of demurrage and other charges, how-
ever the same being too little after a long struggle, the company is still trying to get maximum benefit so that
the shortfall can be reduced to maximum extent.
Election of Directors
The tenure of the following directors has since expired and they will continue to perform their functions till
their successors are elected during the 7th Annual General Meeting.
Khawaja Mohammad Jawed				Khawaja Mohammad Jahangir
Khawaja Mohammad Tanveer				Khawaja Mohammad Nadeem
Khawaja Mohammad Naveed				Palle-o-Jorgensen, Nominee F.L.Smidth
Mr. Naseem Baig, Nominee NIT
Auditors
The present Auditors M/S Hussain Chaudhury & Co. Chartered Accountants, retire and being eligible, offer
themselves for re-appointment.
Pattern of Shareholding
The pattern of shareholding as on June 30, 2000 is annexed
Acknowledgement
In the end, we wish to express our thanks to our contractors, foreign / local suppliers for their support. We
appreciate the devotion of the employees of the company during the year The Directors are especially
thankful to the shareholders. We also put on record our gratitude to foreign lenders, bankers and Government
functionaries for their co-operation.
					On Behalf of the Board
Lahore:					(KHAWAJA MOHAMMAD JAWED),
December 07, 2000					Chief Executive
FORM-34
THE COMPANIES ORDINANCE, 1984 (SECTION 236)
PATTERN OF SHAREHOLDING AS ON JUNE 30, 2000
NUMBER OF		SHAREHOLDING		TOTAL
SHAREHOLDERS		FROM	TO	SHARES HELD
3		1 -	100	300
1402		101 -	500	746200
258		501-	1000	257900
681		1001 -	5000	2330400
267		5001 -	10000	2316400
114		10001-	15000	1535000
75		15001-	20000	1433000
58		20001-	25000	1360500
35		25001 -	30000	1008500
20		30001 -	35000	660500
13		35001 -	40000	508000
8		40001 -	45000	343000
29		45001 -	50000	1433500
6		50001 -	55000	316500
8		55001 -	60000	455000
7		60001 -	65000	446000
9		65001 -	70000	617000
6		70001 -	75000	442000
4		75001 -	80000	316500
2		80001 -	85000	169000
6		85001 -	90000	527500
3		90001 -	95000	281000
13		95001 -	100000	1299700
4		100001 -	105000	411000
2		105001 -	110000	216000
5		110001 -	115000	562000
1		115001 -	120000	116500
4		120001-	125000	495000
1		125001 -	130000	125500
4		130001 -	135000	533500
2		135001 -	140000	275500
3		140001 -	145000	427000
2		145001 -	150000	298000
2		150001 -	155000	308000
1		155001 -	160000	158000
1		160001-	165000	163000
2		165001-	170000	332500
2		170001 -	175000	349500
1		175001-	180000	176000
2		180001-	185000	361000
1		185001-	190000	187000
3		190001 -	195000	581900
1		195001-	200000	199800
4		200001 -	205000	814000
3		205001 -	210000	624500
1		210001 -	215000	210500
1		215001-	220000	219500
1		220001 -	225000	223500
1		225001-	230000	229500
1		230001-	235000	233000
1		235001-	240000	239000
5		245001 -	250000	1250000
1		255001 -	260000	256500
1		260001-	265000	262000
3		270001-	275000	815000
1		275001-	280000	275500
2		295001-	300000	599000
1		365001 -	370000	365500
1		370001-	375000	373000
1		380001 -	385000	385000
1		385001-	390000	389000
1		395001-	400000	398000
1		405001-	410000	409500
1		410001 -	415000	413500
1		425001-	430000	427500
1		480001-	485000	481500
1		505001 -	510000	508000
1		510001 -	515000	513500
1		515001-	520000	515500
1		520001 -	525000	522000
1		530001-	535000	530200
1		535001-	540000	536500
1		540001 -	545000	544900
1		570001 -	575000	570500
1		595001-	600000	595500
1		645001 -	650000	648500
1		690001 -	695000	694425
1		725001-	730000	725700
1		895001 -	900000	896100
3		995001 -	1000000	2997000
1		1000001 -	1005000	1001260
1		1235001 -	1240000	1235500
1		1795001 -	1800000	1798000
12		1995001 -	2000000	23976200
1		2135001 -	2140000	2138325
1		2995001 -	3000000	2997000
1		3460001 -	3465000	3464700
1		8145001 -	8150000	8146619
1		8940001 -	8945000	8943711
1		2090001 -	12095000	12094100
1		2870001 -	12875000	12872882
1		14995001 -	15000000	15000000
1		17060001 -	17065000	17064095
1		19995001 -	20000000	19999980
2		24515001 -	24520000	49038190
1		24570001 -	24575000	24572476
1		52495001 -	52500000	52500000
1		259840001 -	259845000	259840900
----------	----------	----------	----------	----------
3152				562456363
=========	=========	=========	=========	=========
CATEGORIES OF			NUMBER Of	NUMBER Of	PERCENTAGE
SHAREHOLDERS			SHAREHOLDERS	SHARES HELD
INDIVIDUALS			3065	179011214	31.83
INVESTMENT COMPANIES			5	2275325	0.40
INSURANCE COMPANIES			1	19999980	3.56
JOINT STOCK COMPANIES			48	10643800	1.89
FINANCIAL INSTITUTIONS			9	65771025	11.69
MODARABA COMPANIES			4	332000	0.06
FOREIGN COMPANIES			5	284080019	50.51
OTHERS			15	343000	0.06
			----------	----------	----------
TOTAL			3152	562456363	100.00
			=========	=========	=========
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of CHAKWAL CEMENT COMPANY LIMITED as
at June 30, 2000 and cash flow statement together with the notes forming part thereof, for the
year then ended and we state that we have obtained all the information and explanations which,
to the best of our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the company's management to establish and maintain a system of internal
control and prepare and present the above said statements in conformity with the approved accounting
standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an
opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the above said statements are free of any material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the above said statements. An audit
also includes assessing the accounting policies and significant estimates made by management, as
well as, evaluating the overall presentation of the above said statements. We believe that our audit
provides a reasonable basis for our opinion and, after due verification, we report that:
(a) in our opinion, proper books of account have been kept by the company as required by the Companies
Ordinance, 1984.
(b) in our opinion:
(i) the balance sheet together with the notes thereon have been drawn up in conformity
with the Companies Ordinance, 1984 and are in agreement with the books of account
and are further in accordance with accounting policies consistently applied;
(ii) the expenditure incurred during the year was for the purpose of the company's business;
and
(iii) the business conducted, investments made and the expenditure incurred during the
year were in accordance with the objects of the company;
(c) in our opinion and to the best of our information and according to the explanations given to us, the
balance sheet and cash flow statement together with the notes forming part thereof conform with
approved accounting standards as applicable in Pakistan, and, give the information required by the
Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of
the state of the company's affairs as at June 30, 2000 and its cash flows for the year then ended;
and
(d) in our opinion no Zakat was deductable at source under the Zakat and Ushr Ordinance, 1980.
Without qualifying our opinion, we draw attention to note 7 and 16 to the accounts. These accounts have
been prepared on a going concern basis the-validity of which is dependent on the successful outcome of the
matter stated in the said note.
Lahore:					(M.Hussain Chaudhury & Co.)
Date: December, 07 2000					Chartered Accountants
BALANCE SHEET AS AT JUNE 30, 2000
					2000	1999
				NOTE	(RUPEES)	(RUPEES)
SHARE CAPITAL AND RESERVES
Authorized capital
750 million (1999:750 million) ordinary
shares of Rs. 10/- each					7,500,000,000	7,500,000,000
					==========	==========
Issued, subscribed and paid up capital				3	5,624,563,630	5,624,563,630
capital reserve				4	214,838,692	214,838,692
					5,839,402,322	5,839,402,322
LONG TERM LOAN- Secured				5	124,199,750	320,631,750
DEFERRED LIABILITY
Gratuity payable					1,221,266	955,565
CURRENT LIABILITIES
Current portion of Ion9 term loan					869,398,250	534,386,250
Due to Directors					29,464,347	--
Creditors, accrued and other liabilities				6	1,094,530,460	809,181,571
					------------	------------
					1,993,393,057	1,343,567,821
CONTINGENCIES AND COMMITMENTS				7	--	--
					------------	------------
					7,958,216,395	7,504,557,458
					==========	==========
PROPERTY AND ASSETS
FIXED CAPITAL EXPENDITURE
Operating Fixed assets				8	31,485,990	31,876,221
Capital Work in Progress - net				9	7,783,067,999	7,325,945,445
					------------	------------
					7,814,553,989	7,357,821,666
DEFERRED COSTS				10	--	5,258,844
CURRENT ASSETS
Advances, deposits prepayments and				11	135,860,120	1,355,687,621
other receivables
Cash and bank balances				12	7,802,286	5,908,186
					------------	------------
					143,662,406	141,476,948
					------------	------------
					7,958,216,395	7,504,557,458
					==========	==========
Note
1) The annexed notes from 1 to 17 form an integral part of these accounts.
2) Auditors' Report (Annexed)
					Chief Executive
	Director
					2000	1999
				NOTE	(RUPEES)	(RUPEES)
CASH FLOW FROM INVESTING ACTIVITIES
Operating fixed assets					(1,350)	(32,636)
Capital work in progress - Net					(14,550,610)	(34,623,149)
Financial charges paid					(1,888)	(1,159)
					-----------	-----------
Net cash used in investing activities					(14,553,848)	(34,656,944)
CASH FLOW FROM FINANCING ACTIVITIES
Interest income received					689,386	2,263,766
Net cash from financing activities					689,386	2,263,766
0ncrease)/decrease in current assets					(194,391)	4,141,668
Increase/(decrease) in current liabilities					16,068,244	(518,995)
Income tax paid					(115,291 )	(271,271)
					-----------	-----------
Increase/(decrease) in cash & cash equivalents					1,894,100	(29,041,776)
Cash and cash equivalents at beginning of the year					5,908,186	34,949,962
					-----------	-----------
Cash and cash equivalents at end of the year					7,802,286	5,908,186
					==========	==========
	Chief Executive				Director
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2000
1. The company and its operations
1.1 Chakwal Cement Company Limited was incorporated in Pakistan on May 23,1993 as a private
limited company and subsequently converted into a public limited company on October 18,
1994 under the Companies Ordinance, 1984. The Company is listed on all Stock Exchanges
of Pakistan. The principal activity of the company is to set up an industrial undertaking for the
manufacture and sale of cement.
1.2 Profit and loss account for the year ended June 30, 2000 has not been drawn up as the
company has not commenced its operating activities.
2. Significant accounting policies
2.1 .Accounting convention:
These accounts have been prepared under the historical cost convention without any adjust-
ment for the effect of inflation or reference to current values.
2.2 Staff retirement benefit:
The company operates an un-funded gratuity scheme for all its employees.
2.3 Fixed assets and depreciation:
Fixed assets are stated at cost less accumulated depreciation except freehold land and capital
work in progress which are stated at cost.
Cost of operating fixed assets consists of historical cost and attributable expenses in bringing