Page 44 - CCL AR 2017 Final

Summarized operating performance of the company
for the current year and that of last year is as follows:

2016-17 2015-16
(Rs. in million)
Net sales 9,645.40 7,079.37
Cost of sales 6,432.28 4,445.31
Gross Profit 3,213.12 2,634.06
Expenses & taxes 1,256.56 1,228.87
Net Profit 1,956.56 1,405.19

EXPANSION PROJECT – CEMENT LINE II
During the year, the company successfully generously to various social and charitable causes
commissioned the second line of cement including towards health, education and social
manufacturing along with Waste Heat Recovery Plant sectors. The Company actively participates in various
at its existing location in Nowshera, Khyber social work initiatives as part of its corporate social
Pakhtunkhwa Province. With this expansion, the responsibility especially towards the betterment of
production capacity of the company has increased to the people living in the areas around the factory. The
around 2.4 million tons per annum. The expansion company works with many reputable organizations
project, which was completed in a record time within and NGOs in Pakistan like The Aga Khan University
the budgeted costs, benefitted greatly from decline in and The Citizens Foundation. The Company has
discount rates and stable foreign currency exchange always stood by the people of Pakistan in their hour of
rates. The management would like to express its need and shall always continue to do so.
appreciation for all those who were involved in the
smooth execution of this project. SAFETY, HEALTH AND ENVIRONMENT
The company remains committed to continuous
EXPANSION PROJECT - CEMENT LINE III
improvement in Health and Safety aspects of its
Work on the installation of Cement Line III is business, being a responsible corporate citizen. The
progressing on schedule. The company has production facility remained fully compliant with
established the letter of credit for the imported industry standards and safety requirements. The
equipment, and has few awarded contracts for local
works. On the financing front, the company has
finalized the long term loan for the project with
leading banks on competitive terms. The
management is confident of completing the project
by June 2019. Furthermore, the company has also
placed the order for 3 new Wartsila Diesel 34 DF
engines with an ISO rating of about 10mW each,
which will help in efficiently meeting the energy
requirements of the plant.

DIVIDEND
The Board of Directors at its meeting held on August
23, 2017 has proposed a cash dividend @ 35% for the
year ended June 30, 2017. This is in addition to installation of WHR plants has also helped improve
interim cash dividend @ 10% declared during the the environment in the areas surrounding the factory.
year. The approval of members for the dividend will The company has an ISO 14001 certification.
be obtained at the Annual General Meeting to be held
on October 16, 2017. CONTRIBUTION TO NATIONAL EXCHEQUER
The company contributed around Rs. 4.50 billion to
CORPORATE SOCIAL RESPONSIBILTY
the government treasury in shape of taxes, excise
Being an active and socially aware member of the duty, income tax and sales tax.
corporate community, the Company contributes

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Cherat Cement
Company Limited