Page 48 - CCL AR 2017 Final

HUMAN RESOURCE POLICIES Energy Savings Measures at Plant

The Company hires energetic, talented, and As a cost cutting strategy, the company has introduced
motivated human resources and provides them a Waste Heat Recovery (WHR) systems at its plants. The
congenial and healthy working environment to utilize WHR system encapsulates all the wasted heat (which
their capabilities efficiently. The Company believes was previously being released in the atmosphere)
that its core strength is its people, who strive every from the production line and power generators and
day to meet individual challenges and help the utilizes it to generate electricity, which not only
Company achieve its collective targets. The Company conserves energy, but also helps in reduction of
has in place a Performance Review Process in order Carbon dioxide in the environment. Cherat Cement
to recognize employees’ contribution and reward has set up 2 WHR Plants in both Line I and Line II.
them according to their performances. The Company Further, the Company has also installed Variable
also inducts apprentices in its Apprenticeship Frequency Drives (VFD) at various parts of the plant to
Program through which graduates from reputable conserve energy.
institutions are regularly inducted. A management
trainee program is also in place to meet the future Energy Conservation Drive at Head Office
requirements. A large number of recruitment has During the year, installation of Light Emitting Diode
been done in view of expansion in a systematic way.
(LED) lights and through trainings and awareness on
energy conservation measures has resulted in
Industrial Relations
considerable savings in electricity consumption at
We maintain excellent relations with our employees Head Office as compared to last year.
and labour. There is a formal labour union in place
which represents all classes of workers and
independently takes care of all labour related issues.
The Company takes every reasonable step for swift
and amicable resolution of all their issues.

Succession Planning
The Company has a process for identifying and
developing internal people with the potential to fill
key business leadership positions. This process
increases the availability of experienced and capable
employees that are prepared to assume these roles as
they get to that level.
LIQUIDITY AND CAPITAL STRUCTURE
Profits earned in recent years have significantly
improved the liquidity position of the Company
contributing to a better operating cycle of the
business. The Company managed to earn healthy
cash flows during the year, which are being
monitored on a daily basis. Adequate debt and equity
ratio is being maintained throughout the year. The
Company made draw-down of Rs. 878 million
(aggregate Rs. 4.9 billion) on account of long-term
loan to finance cement line II project. However, the
balance amount was funded through self generated
cash. The Company had planned and arranged the
syndicated long-term loan facilities amounting to Rs.
ENERGY CONSERVATION 9.5 billion. For line III project, a long-term loan of Rs.
13 billion has been arranged at very competitive
Energy efficiency has proven to be a lucrative and
proficient way to guarantee a sustainable future. The rates. Strong liquidity of the Company is evidenced
company has taken numerous initiatives to save by current ratio of 1.78.
energy which eventually decreased the cost of
production. In order to reduce reliance on Through continuous monitoring the company
conventional fuels, the Company continuously seeks maintained its current ratio at 1.78. The company
to undertake significant measures to conserve energy managed to earn healthy cash flows during the year,
by creating awareness at Head Office and Plant site which are being monitored on a daily basis. Adequate
on efficient energy usage through regular sessions. debt and equity ratio is being maintained throughout
the year.

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Cherat Cement
Company Limited