Page 52 - CCL AR 2017 Final

The Company on an annual basis sets marketing, efficiency, for new cement line, the Company has also
production and other targets in the form of a budget installed WHR plant along with the new cement line.
which is duly approved by the Board of Directors. We expect the mark up and exchange rates to remain
We have met almost all the key targets set in our last stable in the next year.
year’s budget especially pertaining to revenue and
profitability. This is also in line with our expectations Overall we are positive about the future and hope that
given in the future prospects section of last year’s the Company and the industry as a whole will play a
Directors’ Report. key role in the economic development of the Country
in the years to come.
For liquidity and gearing, cash flows are monitored on Financial Projections
a daily basis to achieve the targets. On the other side,
the Company is in process of installing another line of The company expects to enhance its revenue and
cement at its existing location. Due consideration has profit base through expansion to fulfil the expected
been given to leverage and gearing by using adequate increase in local cement industry demand on the back
mix of debt and equity for this project. All project of improved economic and law and order situation
related targets and timelines were met during the year coupled with construction of various infrastructural
pertaining to Line II. projects initiated by the Government. Till the
commissioning of plant, the management will try to
On the human resource side, based on the last year’s optimize the existing resources.
Training Need Analysis (TNA) and performance
appraisal of the company personnel, adequate
technical trainings were conducted for the identified
employees. The same process is followed on yearly
basis. The company has developed extensive training
program for all levels of management. The company
will be conducting these trainings in future also which
would equip the employees with required technical
and management skills in the years to come.

Availability of power at competitive rates is a critical
factor. We always try to manage this through alternate
energy options including WHR, RDF and TDF. In
order to ensure energy conservation and cost

Future revenue projections based on management’s best judgment and estimates are as follows:

Year 2017-18 2018-19 2019-20
Revenue - net (Rs. in Million) 14,318 14,545 20,079

Company Performance Against Last Year Projections ADDITIONAL DISCLOSURES
Cement industry witnessed a growth of 8% in local Fair Value of Property, Plant and Equipment
market. However, export sales declined by 21%. The
overall cement demand increased by 3.71%. The Total Assessed Present Market value of existing plant,
Company witnessed a phenominal growth of around machinery and building is more than Rs. 17 billion.
49%. The same trend was also anticipated in last year’s However, the same has not been incorporated in
future outlook statement. Our last year anticipation of financial statements.
stable mark up and exchange rates all proved to be Significant Material Assets
true. Our expectation of stable fuel prices was also
correct to the extent of Furnace oil however, coal Significant material assets of the Company are
prices increased more than our expectation. Company building, complete cement line (Kiln, cooler,
has actively strived to minimize its cost by using preheater, cement and raw mills etc), WHR systems,
alternative fuel efficient mix of local and imported RDF and generators.
coal, optimum mix of WHR, National Grid and self Plant Capacity
power generations. All financial and non-financial
targets established during last year were met to a The Company has annual production capacity of 2.4
greater extent. million ton cement, which is determined on the basis
of 300 days operation.

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Cherat Cement
Company Limited