Page 46 - CCL AR 2017 Final

MADIAN HYDRO POWER LIMITED projects. The demand for cement is also getting a
major boost from projects under Pak China Economic
Established in 2005/06, Madian Hydro Power Limited Corridor. Increase in spending by private sector
is a joint venture hydro project with Shirazi particularly in construction of housing projects and
Investments. The technical feasibility of the project shopping malls are also fueling the demand for
was completed in 2009, which was approved by the cement. It is, therefore, expected that the domestic
Private Power and Infrastructure Board (PPIB). demand shall increase considerably and play a vital
However, due to deteriorating security situation in role in higher cement dispatches in both the medium
Swat, not much progress could be achieved and long-term. In such a scenario, addition of new
thereafter. The sponsors had requested for an cement line at existing location by the company will
indefinite extension from PPIB for post feasibility not only enhance its domestic market share but will
study deadlines applicable to the project. During the also allow it to achieve greater efficiencies and better
year, PPIB has revoked the LOI issued to MHPL. allocation of fixed costs.
Although, the management has taken up the matter
with the PPIB, in view of the uncertain situation, it APPOINTMENT OF AUDITORS
impaired the carrying value of the investment in the The present auditors M/s. EY Ford Rhodes, Chartered
year 2012/13.
Accountants, retire and being eligible, offer
FUTURE PROSPECTS themselves for re-appointment.

There has been a significant improvement in the ACKNOWLEDGMENT
investors’ confidence in the country, which is We would like to thank all the financial institutions
reflected from the performance of the industrial having business relationship with us, our dealers and
sector. This has also been acknowledged by leading customers for their continued support, cooperation
rating agencies and international financial and trust they have reposed in us. We would also like
institutions. The cement industry is benefiting from to share our deepest appreciation for all our staff for
stable economic outlook, low interest rates and their dedication, loyalty and hard work.
greater outlay of PSDP by the government for
constructing highways, dams, energy and housing

On behalf of the
Board of Directors

Azam Faruque
Chief Executive
Karachi: August 23, 2017

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Cherat Cement
Company Limited