Page 102 - CCL AR 2017 Final

Glossary of Terms

AGM: A mandatory, public yearly gathering of a HR & RC: Human Resource and Remuneration
publicly traded company's executives, directors and Committee.
interested shareholders.
Amortization: To charge a regular portion of an
HSE: Health, Safety and Environment. expenditure over a fixed period of time.

EBITDA: Earnings before Interest, Taxes, Depreciation Joint Venture (JV): A business arrangement in which
and Amortization. two or more parties agree to pool their resources for
the purpose of accomplishing a specific task.
Return on Equity (ROE): The value found by dividing
the company's net income by its net assets (ROE KIBOR: Karachi Inter Bank Offer Rate.
measures the amount a company earns on
investments). Spread: Rate charged by the bank over KIBOR.

Current Ratio: The current ratio indicates a ISO 14001:2004: A standard for the management of
company's ability to meet short-term debt environmental matters that is widely used in various
obligations. parts of the world.

Acid Test Ratio: The ratio of liquid assets to current Security: A pledge made to secure the performance of
liabilities. a contract or the fulfillment of an obligation.

Operating Cycle: The average time between Term: The maturity or length of time until final
purchasing or acquiring inventory and receiving cash repayment on a loan, bond, sale or other contractual
proceeds from its sale. obligation.

Earnings Per Share: Earnings found by dividing the Principal: In commercial law, the principal is the
net income of the company by the number of shares amount that is received, in the case of a loan, or the
of common outstanding stock. amount from which flows the interest.

Price-Earnings Ratio (P/E): The ratio found by Borrowing Cost: Finance costs that are directly
dividing market price per share by earnings per share attributable to the construction/acquisition of a
(This ratio indicates what investors think of the firm's qualifying assets and included in the cost of such
earnings' growth and risk prospects). asset.

Dividend Payout Ratio: The ratio found by dividing Qualifying Asset: An asset that takes substantial
the annual dividends per share by the annual period of time to get ready for its intended use/sale.
earnings per share.
Consortium Financing: Is a solution usually entails
Long Term Debt-to-Equity Ratio: The ratio found by several banks or financial institutions joining hands to
dividing long-term debt by the equity (all assets minus finance large projects through a common appraisal,
debts) held in stock (This is a measure of financial common documentation and joint supervision.
risk).
Diminishing Musharakah: Refers to joint ownership
IASB: International Accounting Standards Board. of asset by financier and borrower. The share of
financier in the asset is divided into number of units
IAS: International Accounting Standards. and borrower will purchase those units periodically,
thus increasing his own share till complete
IFRS: International Financial Reporting Standard. ownership.

IFRIC: International Financial Reporting Issues Shariah-Compliant Finance / Banking: Facility which
Committee. meets all of the requirements of Shariah law and the
principles articulated for "Islamic Finance".

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Cherat Cement
Company Limited