Page 33 - CCL AR 2017 Final

6. Section 242 of the Companies Act 2017 provides STATUS OF INVESTMENT IN MIRPURKHAS SUGAR
that in case of a listed company, any cash MILLS LIMITED
dividend declared by the company must be paid The Company in its Annual General Meeting held on
electronically directly into the accounts of the October 31, 2016 had obtained the approval of its
shareholders. In compliance of the same shareholders for an investment of up to Rs. 100
shareholders of the Company are requested to million by acquiring shares of Mirpurkhas Sugar Mills
provide their bank mandate to the Company’s Limited from the market. During the year, the
Share Registrar at the earliest.
Company has purchased shares worth Rs. 55.12
7. With reference to S.R.O. 787(I)/2014 dated million approximately. No further shares will be
September 8, 2014 issued by SECP; shareholders acquired by the Company.
have option to receive Annual Audited Financial STATUS OF INVESTMENT IN MADIAN HYDRO
Statements and Notice of General Meeting POWER LIMITED
through email. Shareholders of the Company are
requested to give their consent to the Company’s In 2005, the Company took approval from its
Head Office to update our record if they wish to shareholders to invest up to Rs. 2.5 billion in Madian
receive Annual Audited Financial Statements and Hydro Power Limited, a joint venture hydro project
Notice of General Meeting through email. with Shirazi Investments. The technical feasibility of
However, if shareholder, in addition, request for the project was completed in 2009 which was
hard copy of Audited Financial Statements the approved by the Private Power and Infrastructure
same shall be provided free of cost within seven Board (PPIB). However, due to the deteriorating
[7] days of receipt of such request. security situation in Swat, not much progress could be
achieved thereafter. The sponsors had requested for
STATUS OF INVESTMENT IN UNIENERGY LIMITED
an indefinite extension from PPIB for post feasibility
The Company in its Annual General Meeting held on study deadlines applicable to the project. During the
October 16, 2015 had obtained the approval of its year, PPIB has revoked the LOI issued to MHPL.
shareholders for investment of up to Rs. 250 million Although the Company has taken up the matter with
in the equity of UniEnergy Limited. Keeping in view PPIB, in view of the uncertain situation, it impaired
the status of the project and its financial the carrying value of the investment in the year
requirements, the Company has so far invested Rs. 2012/2013.
7.69 million only. The remaining amount will be
invested by Cherat Cement Company Limited as and
when required by UniEnergy Limited.

Statement Under Section 134 of the Companies Act, 2017

The statement sets out material facts concerning “Special Business” to be transacted at the Annual General
Meeting of the Company to be held on October 16, 2017. The approval of the Members of the Company will be
sought for:
INFORMATION REGARDING THE INVESTMENT
Item No: 5
Cherat Cement Co. Ltd. (CCCL) is a shareholder of Cherat Packaging Ltd. (CPL) and has been receiving regular
dividend income on its investment for past many years. CPL is the leading manufacturer and supplier of sack kraft
paper and polypropylene (PP) bags. CPL, which started commercial operations in 1991 and is listed on Pakistan
Stock Exchange, is the largest producer and supplier of paper and polypropylene bags to the cement industry in
Pakistan.
CPL has a history of consistent growth over the years. As part of its diversification strategy, it has now decided to
enter into Flexible Packaging, which is a growing field of business worldwide and offers a great future potential to
further grow its business. With an eye on this fast evolving consumer market, it has decided to invest in a top-end
equipment to ensure it can keep pace with the best of the established players and in this regard, has placed the
order to acquire the plant from leading European suppliers with main equipment being procured from M/s.
Windmoller & Holscher, which is a leading machine supplier of this industry. CPL will be the first company in
Pakistan to come up with the roto, flexo, extrusion and cylinder making machines all at the same time. The plant

31
Annual
Report 2017