MLCF Annual Report 2015

annual report 2015
Contents
Financial Highlights
Geographical Presence
Company Information
Vision Statement
Mission Statement
Corporate Strategy
Core Values
History of Maple
Code of Business Conduct and
Ethical Principles
Company Profile and Group Structure
Statement of Overall Strategic
Objectives 2015-2016
Notice of Annual General Meeting
Directors Report to the Shareholders
Brief Profile of Directors
The Board Structure and its Committees
Policy and Procedures for Stakeholders
Engagement
Report of the Audit Committee
Risk and Opportunity Report
Calendar of Notable Events
Organization Chart
Definitions and Glossary of Terms
Horizontal Analysis - Six Years
Vertical Analysis - Six Years
Summary of Cash Flow Statement - Six Years
Comments on Six Years Analysis
02
03
07
08
09
10
11
12
14
15
18
20
30
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57
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71
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79
80
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83
Analysis of Financial Ratios

Comments on Ratio Analysis
DuPont Analysis
Key Operating and Financial Data
Statement of Cash Flows
Direct Method
Results Reported in Interim Financial
Statements and Final Accounts
Statement of Value Added and
How Distributed
Graphical Presentation Stakeholders Information
Pattern of Shareholding
Statement of Compliance with the Code of
Corporate Governance
Review Report to the Members on
Statement of Compliance with the
Code of Corporate Governance
FINANCIAL STATEMENTS
Auditors Report to the Members
Balance Sheet
Profit and Loss Account
Statement of Comprehensive Income
Cash Flow Statement
Statement of Changes in Equity
Notes to Financial Statements
Proxy Form
85
86
87
88
89
90
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92
94
100
104
109
110
112
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115
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Annual Report 2015
9%
MAPLE LEAF CEMENT
9%
10%
22%
22%
32%
Market Capitalization
Interest Coverage
Shareholders Equity
Profit After Tax
Earnings Per Share
Operating Profit
Sales Revenue
EBITDA
t
h
g
i
l
gh 14
i
H 20
l
a
ci vs
n
a 15
n
i
F 20
s
49%
161%
Geographical Presence
Head Office
42 - Lawrence Road, Lahore
Plant
Iskanderabad Distt: Mianwali
Regional Office
25 West Wharf Road, Karachi
Annual Report 2015
MAPLE LEAF CEMENT
Effective teamwork
Master Mistri
Program
Annual Report 2015
5
Looking forward
MAPLE LEAF CEMENT
Company Information
Board of Directors
Mr. Tariq Sayeed Saigol
Mr. Sayeed Tariq Saigol
Mr. Taufique Sayeed Saigol
Mr. Waleed Tariq Saigol
Mr. Danial Taufique Saigol
Syed Mohsin Raza Naqvi
Mr. Zamiruddin Azar
Mr. Karim Hatim
Audit Committee
Mr. Zamiruddin Azar
Mr. Karim Hatim
Human Resource &
Remuneration Committee
Mr. Zamiruddin Azar
Chairman
Chief Executive
Chairman
Member
Member
Member
Chairman
Member
Member
Chief Financial Officer

Company Secretary
Mr. Muhammad Ashraf
Chief Internal Auditor
Mr. Bilal Hussain
Bankers of the Company
Allied Bank Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Al-Habib Limited
BankIslami Pakistan Limited
Burj Bank Limited
Bank of Khyber Limited
Dubai Islamic Bank Limited
Faysal Bank Limited
First Dawood Islamic Bank Limited
First Women Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Islamic Corporation for the Development
of the Private Sector, Jeddah

KASB Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
NIB Bank Limited
Pak Brunei Investment Company Limited
Pak-Libya Holding Company (Pvt.) Limited
Silk Bank Limited
Soneri Bank Limited
Standard Chartered Bank (Pakistan) Limited
Summit Bank Limited
The Bank of Punjab
Trust Investment Bank Limited
United Bank Limited
Auditors
KPMG Taseer Hadi & Co.
Chartered Accountants
Legal Adviser
Mr. Shahid Ismail
Advocate High Court

Registered Office
42-Lawrence Road, Lahore.
Phone: (042) 36278904-5
Fax: (042) 36368721
E-mail: [email protected]
Factory
Iskanderabad Distt. Mianwali.
Phone: (0459) 392237-8
Call Centre (24 / 7)
0800-41111
Share Registrar
Vision Consulting Ltd.
Head Office: 3-C, LDA Flats,
Lawrence Road, Lahore
Phone: (042) 36283096-97
Fax: (042) 36312550
E-mail: [email protected]
Company Website:
www.kmlg.com
Note: MLCFLs Financial Statements are also
available at the above website.
Annual Report 2015
Vision
Statement
The Maple Leaf Cement Factory
stated vision is to achieve
and then remain as the most
progressive and profitable
Company in Pakistan in terms
of industry standards and
stakeholders interest.
MAPLE LEAF CEMENT
Mission
Statement
The Company shall achieve its
vision through a continuous
process of having sourced and
implemented the best leading
edge
technology,
industry
best practice, human resource
and by conducting its business
professionally and efficiently
with the responsibility to all its
stakeholders and community.
Annual Report 2015
Corporate Strategy
We at Maple Leaf Cement Factory manufacture and market different
types of consistently high quality cement, according to the demanding
requirements of the construction industry. Our strategy is to be
competitive in the market through quality and efficient operations.
As a responsible member of the community, we are committed to
serve the interest of our stakeholders and contribute towards the
prosperity of the country.
Vision Statement
10
MAPLE LEAF CEMENT
Core Values
Maple Leaf Cement is committed to be an ethical and a
responsible member of the business communities in which
it operates. The Company always endeavours to ensure
that highest standards of honesty, integrity and ethics are
maintained.
Annual Report 2015
11
History of Maple
1956, MLCFL was established by the West
Pakistan Industrial Development Corporation
(WPIDC) and incorporated as Maple Leaf
Cement Factory Limited. The capacity of the
plant was 300,000 tons clinker per annum.
2005, dry process plant capacity was increased

from 3,300 tpd to 4,000 tpd through
debottlenecking and up-gradation of equipment
and necessary adjustments in operational
parameters.
1967, a company with the name of White Cement

Industries Limited (WCIL) was established with
the clinker capacity of 15,000 tons per annum.
2006, a project to convert the existing wet

process line to a fuel efficient dry process
white cement line commenced its commercial
production. Profit after tax was reported PKR
1,059 million.
1974, under the WPIDC Transfer of Projects and

the Companies Act, 1913, the management of
two companies namely, MLCFL and WCIL were
transferred to the newly established State
Cement Corporation of Pakistan (SCCP).
1983, SCCP expanded WCILs white cement plant
by adding another unit of the same capacity
parallel to the existing one; it increased total
capacity to 30,000 tons clinker per annum.
1986, SCCP set up another production unit of grey
cement under the name of Pak Cement Company
Limited (PCCL) with a capacity of 180,000 tons
per annum.
1992, MLCFL, WCIL and PCCL were privatized and
transferred to the KMLG. All three companies
were merged into Maple Leaf Cement Factory
Limited on July 01, 1992.
1994, the Company was listed on all Stock
Exchanges in Pakistan.
1998, a separate production line for grey portland
cement of 990,000 tons per annum clinker
capacity based on most modern dry process
technology was installed.
2000, Maple Leaf Electric Company Limited
(MLEC), a power generation unit, was merged
into the Company.
2004, the coal conversion project at new dry
process plant was completed.
12
MAPLE LEAF CEMENT
2007, the Company undertook another expansion

project of 6,700 tpd grey clinker capacity which
commenced its commercial production on
November 01, 2007.
2008, two existing lines of white cement 50
tpd each clinker capacity converted into oil
well cement plant which started its commercial
production.
2011, the Company successfully started Waste
Heat Recovery Boiler Plant.
2012, the Company started earning profit and
recorded PKR 496 million profit after tax.
2013, the Company earned the highest ever
record profit after tax of PKR 3,225 million.
2014, the Company and Pakistan Railway signed
an agreement to transport coal and cement from
Karachi to Daudkhel and vice - versa.
2015, the Company recorded the highest ever
turnover of PKR 20,720 million as well as profit
after tax of PKR 3,454 million. The Company
reduced its debt burden by 46% as compared
with last year. The Company has proposed a final
cash dividend of 10% in addition to interim cash
dividend of 10% which has already been paid.
Shared responsibility
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13
Code of Business Conduct and

Ethical Principles
The following principles constitute the code of conduct which all Directors and employees of Maple Leaf
Cement Factory Limited are required to apply in their daily work and observe in the conduct of Companys
business. While the Company will ensure that all employees are fully aware of these principles, it is the
responsibility of each employee to implement the Companys policies. Contravention is viewed as misconduct.
The code emphasizes the need for a high standard of honesty and integrity which are vital for the success
of any business.
ETHICAL PRINCIPLES
1. Directors and employees are expected not to
engage in any activity which can cause conflict
between their personal interest and the
interest of the Company such as interest in an
organization supplying goods/services to the
Company or purchasing its products. In case a
relationship with such an organization exists,
the same must be disclosed to the Management.
5. All employees share a responsibility for the

Companys good public relations particularly
at the community level. Their readiness to help
with religious, charitable, educational and civic
activities is accordingly encouraged provided
it does not create an obligation that interferes
with their commitment to the Companys best
interests.
2. Dealings with third parties which include

Government officials, suppliers, buyers, agents
and consultants must always ensure that the
integrity and reputation of the Company are not
in any way compromised.
6. The Company has strong commitment to

the health and safety of its employees and
preservation of the environment and the
Company will persevere towards achieving
continuous improvement of its Health,
Safety and Environment (HSE) performance
by reducing potential hazards, preventing
pollution and improving awareness. Employees
are required to operate the Companys facilities
and processes keeping this commitment in
view.
3. Directors and employees are not allowed to

accept any favours or kickbacks from any
organization dealing with the Company.
4. Directors and employees are not permitted to
divulge any confidential information relating
to the Company to any unauthorized person,
nor should they, while communicating publicly
on matters that involve Company business,
presume to speak for the Company unless they
are certain that the views that they express are
those of the Company and it is the Companys
desire that such views be publicly disseminated.
14
MAPLE LEAF CEMENT
7. Commitment and team work are key elements

to ensure that the Companys work is carried
out effectively and efficiently. Also all employees
will be equally respected and actions such as
sexual harassment and disparaging remarks
based on gender, religion, race or ethnicity will
be avoided.
KMLG Head Office
Company Profile and Group Structure

Maple Leaf Cement is a part of Kohinoor Maple Leaf
Group (KMLG). KMLG comprises of two listed public
limited companies i.e. Kohinoor Textile Mills Limited
(KTML) and Maple Leaf Cement Factory Limited
(MLCF). MLCF is a subsidiary company of KTML.
The Group companies are ranked amongst the top
companies in the cement and textile sectors.
A wholly owned public limited subsidiary company
of Maple Leaf Cement namely, Maple Leaf
Power Limited (Proposed) is in the process of
incorporation. The main purpose of this entity
shall be the generation and supply of power for
Maple Leaf Cement and reduce dependency on the
national grid.
Maple Leaf Capital Limited (MLCL) has been set
up as an unlisted public limited company having
authorized share capital of Rs. 2,500 million with
paid up capital of Rs. 1,515 million. Its principal object
is to buy, sell, hold or otherwise acquire or invest its
capital in any sort of financial instruments. This is
the subsidiary of Kohinoor Textile Mills Limited, the
holding company of Maple Leaf Cement.
Nature of Business:
Maple Leaf Cement Factory Limited is part of the
Kohinoor Maple Leaf Group which is a reputable
manufacturer of textile and cement in Pakistan.
Maple Leaf Cement is the largest single cement
production site in Pakistan. It is one of the pioneers
of cement industry in Pakistan and in 1956 it was
formed by the collaboration between the West
Pakistan Industrial Development Corporation and
the Government of Canada. Currently, the Company
operates via two production lines for the production
of grey cement and one line for white cement
in which it owns more than 90% market share. All
three lines are owned assets of the Company. Total
installed capacity for clinker production is 3,360,000
tons annually.
Macro Factors Affecting the Business:
a) Pakistan Economy - The revival of growth
that started in 2013-14 has accelerated in 201415 as per indicators released by the National
Accounts Committee. The factors contributing
Annual Report 2015
15
this momentum in growth include the reform

initiatives, commitment to a calibrated fiscal
and monetary management and an overall
improvement in the macroeconomic situation.
The impact of these factors was strengthened
by a steep decline in oil prices, rise in foreign
exchange buffers, growth in remittances and
proceeds from privatization.
b) Cement Industry The cement sector has been
on the rise as being a major component of
development projects, a key focus of the current
government. Also, reduction in cost owing to
reduced HFO/coal prices has also benefited
the sector as a whole. Major players have
continuously registered increased profitability
during the year and surpassing expectations by
better margins. Overall economic upgrade of
the economy has also played a major role in this
rise in demand.
c) Inflation From the start of the year, Inflation on
a year on year basis, decreased from 7% to 2.1%
in April which is the lowest level since 2003-2004
(SBP Inflation Snapshot). However, towards the
end of the financial year, it increased slightly to
close at 3.2%.
d) Public Sector Development Budget (PSDB)
One of the major focus of the present
government is on public sector development
including infrastructure which has led to an
increase in PSDB over the years. Majority of
the PSDP projects are concentrated in Punjab,
followed by Sindh and Khyber Pakhtunkhwa.
Being majorly concentrated in Punjab, this gives
the Company an advantage as its local market is
also currently majorly clustered in Punjab.
e) Fiscal Development The fiscal deficit has
decreased from 8.8% in 2013 to 5.3% in 2015. This
has been possible by the reforms of the present
government on both revenue and expenditure
side. The government further expects to
decrease this to 4.3% for the year 2015-2016.
f) Construction Activity Based on low inflation,
reduced fiscal deficit and increased economic
performance as mentioned above, the
construction activity also got a boost with major
housing projects initiated in all areas of Pakistan.
g) Money & Credit The discount rate has reduced
from 10% in 2013 to 7.5% in 2015. Balance of
16
MAPLE LEAF CEMENT
payments also improved at the backing of

reduced import bill and steady growth in
workers remittances. Foreign exchange
reserves closed at $13.5 billion as on 30th June
2015.
h) Main Market The main market of the Company
is the domestic market supported by exports
which are mainly in Africa, Gulf and other Asian
countries.
i) Environment The operations of the Company
are subject to different environmental,
corporate and labor laws and it is fully complying
with these and other relevant laws.
Micro Factors Affecting the Business:
a) Business model for the Company The business
model of the Company is to increase retention,
reduce the cost of production and increase
in customer satisfaction. The approach to be
followed is to reduce variable cost through
various cost efficient measures.
b) Product portfolio To cater to varying needs of
the market, Maple Leaf produces the following
cement:
i) Ordinary Portland Cement
ii) Sulphate Resistant Cement
iii) Low Alkali Cement
iv) White Cement
The varying products allow Maple Leaf to cater
different types of customers from household to
contractors to government infrastructure needs
as the composition of cement required by each is
different.
c) Competitors Maple Leaf is amongst the
top companies in the cement industry. It has
performed handsomely and has yielded results
which have placed it in the top ranks. The
Company is always striving to improve with
focus on improved sales and cost reduction
measures.
d) Suppliers Coal is mainly imported from South
Africa, which is a famous source all over the
world for its high gross caloric value and low
moisture content. Raw materials like limestone,
clay and gypsum are mined by contractors on
leased lands by Maple Leaf Cement.
Acutely dutiful
Annual Report 2015
17
Statement of Overall Strategic Objectives

2015-2016
Following are the main principles that constitute the strategic objectives of Maple Leaf Cement Factory
Limited:1.
Improved capacity utilization of the Companys production facilities.
2.
Modernization of production facilities in order to ensure the most effective production.
3.
Effective marketing and innovative concepts.
4.
Implementation of effective human resource solutions through personnel development, creating

proper environment for professional growth of highly skilled professionals, ensuring safe labour
environment, competitive staff remuneration and social benefits in accordance with scope and quality
of their work.
5.
Effective use of available resources.
6.
Explore alternative energy resources.
7. Further improvements in Code of Corporate Governance through restructuring of assets and

optimization of management processes.
18
8.
Compliance with local and international environmental and quality management standards,
implementation of technologies allowing to comply with the limitations imposed on pollutant emissions.
9.
Implementation of projects in social and economic development of communities.
MAPLE LEAF CEMENT
Thriving individuals
Annual Report 2015
19
Notice of Annual General Meeting

Notice is hereby given that the 55th Annual General Meeting of the members of Maple Leaf Cement Factory
Limited (the Company) will be held on Saturday, October 31, 2015 at 11:00 AM at 42-Lawrence Road, Lahore,
the Registered Office of the Company, to transact the following business:Ordinary Business:
1) To receive, consider and adopt the audited
accounts of the Company for the year ended
June 30, 2015 together with the Directors and
Auditors Reports thereon.
2) To approve the final cash dividend of Re.1/- per

share (10%) for the year ended June 30, 2015, as
recommended by the Board of Directors. This is
in addition to the interim dividend of Re.1/- per
share (10%) already paid making a total cash
dividend of Rs.2/- per share (20%) during the
year.
3) To appoint Auditors for the year ending on June
30, 2016 and fix their remuneration. The Board
has recommended, as suggested by the Audit
Committee, the appointment of M/s. KPMG
Taseer Hadi & Co., Chartered Accountants,
the retiring auditors and being eligible offer
themselves for re-appointment.
without modification, addition(s) or deletion(s),

as recommended by the Directors:
Resolved by way of special resolution that

consent and approval of Maple Leaf Cement
Factory Limited (the Company) be and is
hereby accorded under Section 208 of the
Companies Ordinance, 1984 (the Ordinance)
for investment in the form of loans / advances
from time to time to Kohinoor Textile Mills
Limited, the holding company, upto an
aggregate sum of Rs.500 million (Rupees
five hundred million only) for a period of one
year commencing from November 01, 2015 to
October 31, 2016 (both days inclusive) at the
mark-up rate of one percent above the average
borrowing cost of the Company. Vide special
resolution passed in general meeting held
on October 30, 2014 by the shareholders, the
Company was authorized to extend a facility
of similar nature to the extent of Rs.300 million
which is valid till October 31, 2015.
Resolved further that the Chief Executive and

the Company Secretary of the Company be and
are hereby authorized singly to take all steps
necessary, ancillary and incidental, corporate
and legal formalities for the completion of
transactions in relation to the loans / advances
to the holding company but not limited to filing
of all the requisite statutory forms and all other
documents with SECP, executing documents
all such notices, reports, letters and any other
document or instrument to give effect to the
above resolution.
BY ORDER OF THE BOARD
Special Business:
4) To consider and if deemed fit, to pass the
following special resolution under Section 208
of the Companies Ordinance, 1984, with or
20
MAPLE LEAF CEMENT
Lahore: October 10, 2015
(Muhammad Ashraf)
Company Secretary
Notes:
1. The Share Transfer Books of the Company will remain closed from October 20, 2015 to October 31, 2015
(both days inclusive). Physical transfers / CDS Transaction IDs received at the Companys Share Registrar,
M/s. Vision Consulting Ltd, 3-C, LDA Flats, Lawrence Road, Lahore, at the close of business on October
19, 2015 will be considered in time for the purpose of above entitlement and to determine voting rights
of the shareholders for attending the meeting.
2. A member eligible to attend, speak and vote at this meeting may appoint another member as his/her
proxy and CDC shareholders shall attach an attested copy of his/her Computerized National Identity
Card (CNIC) / Passport. Proxies, in order to be effective, must reach at the Companys Registered Office
not later than 48 hours before the time for holding the meeting and must be duly stamped, signed and
witnessed. Representatives of corporate members should bring the usual documents required for such
purpose.
3. The Members, who desire for receiving the audited financial statements and AGM Notice through e-mail,
are requested to send their written consent on a Standard Request Form available on website www.
kmlg.com in order to avail this facility.
4. Shareholders are requested to notify / submit the following information & documents, in case of book
entry securities in CDS to their respective CDS participants and in case of physical shares to our Share
Registrar, if not earlier provided / notified:a.
Change in their addresses;
b.
Dividend mandate information i.e. Title of Bank Account, Bank Account No., Banks Name, Branch
Address and Cell / Landline No(s). of the Transferee(s) towards direct dispatch of cash dividend
cheque(s) to their bankers;
c.
Valid and legible copies of CNIC for printing of CNIC number(s) on their Dividend Warrant(s) as
required vide SRO 831 (I)/2012 dated July 05, 2012. In case of non-submission of valid & legible
copy of CNIC, the Company will be constrained to withhold the Dividend Warrant(s) under Section
251(2) of the Companies Ordinance, 1984;
d.
Valid and legible copies of National Tax Number (NTN) or NTN Certificate(s) of corporate entities
and must quote the company name and their respective folio numbers thereon while sending the
copies;
e.
Pursuant to requirement of the Finance Act, 2015 effective July 01, 2015, the Filer & Non-Filer
shareholders will pay tax on dividend income @12.5% and 17.5% respectively. Therefore, please
ensure that their name(s) have been entered into Active Taxpayers List (ATL) provided on website
www.fbr.gov.pk of the Federal Board of Revenue (FBR), despite the fact that the shareholder is
a filer, before the payment date of cash dividend i.e. November 27, 2015, otherwise tax on cash
dividend will be deducted @17.5% instead of 12.5%;
Annual Report 2015
21
f.
As per clarification of FBR, each holder is to be treated individually as either a Filer or Non-Filer
and tax will be deducted on the basis of shareholding of each joint holder as may be notified by the
shareholder, in writing within 10 days from entitlement date i.e. October 19, 2015 as follows, to our
Share Registrar, or if no notification, each joint holder shall be assumed to have an equal number
of shares.
Folio / CDC
Account No.
Total
Principal Shareholder
Joint Shareholder
Shares

Name & Shareholding
Name &

CNIC No.
Proportion
CNIC No.

(No. of Shares)
g.
Related reference from law or valid tax exemption certificate issued by the concerned
Commissioner of Inland Revenue is to be furnished to the Company / Share Registrar in order to
avail tax exemption otherwise tax will be deducted under the provisions of the law.
h.
For any query / information, the shareholders may contact the Company Secretary at the above
Registered Office and / or Mr. Abdul Ghaffar Ghaffari of Share Registrar, Vision Consulting Ltd, 3-C,
LDA Flats, Lawrence Road, Lahore, Ph. Nos. (042) 36283096-97.
i.
The audited financial statements for the year ended June 30, 2015 are available on website of the
Company www.kmlg.com.
22
Shareholding
Proportion
(No. of Shares)
MAPLE LEAF CEMENT
Pioneering trust
Annual Report 2015
23
Statement Under Section 160(1) (b)

of the Ordinance:
Investment in Holding Company
This statement sets out the material facts
pertaining to the special business proposed to be
transacted under Section 208 of the Ordinance at
the forthcoming Annual General Meeting of the
Company to be held on October 31, 2015.
Kohinoor Textile Mills Limited (KTML), the
holding company, having its Registered Office at
42-Lawrence Road, Lahore, is a manufacturer of yarn
and cloth, processing and stitching the cloth and
trade of textile products. Its production comprises
156,528 ring spindles capable of spinning a wide
range of counts using cotton and Man-made fibers.
The weaving facilities at Raiwind comprise 252 looms
capable of weaving wide range of greige fabrics.
The processing facilities at the Rawalpindi unit are
capable of dyeing and printing fabrics for the home
textile market. The stitching facilities produce a
diversified range of home textiles for the export
market. Both the dyeing and stitching facilities are
being augmented to take advantage of greater
market access.
The Board of Directors of the Company in their
meeting held on September 09, 2015 has approved
24
MAPLE LEAF CEMENT
Rs.500 million as loans / advances, being a reciprocal

facility, to KTML on the basis of escalating profit
trend of KTML subject to approval of the members.
The Company shall extend the facility of loans /
advances from time to time for working capital
requirements to KTML in accordance with an
agreement in writing including all relevant terms and
conditions as prescribed in the Regulations.
Directors of the Company have also provided their
duly signed undertaking / due diligence report
with recommendations that they have carried out
necessary due diligence for the proposed investment
in KTML and it has been kept at Registered Office of
the Company for inspection of the members along
with audited accounts of KTML as required under
the Regulations.
Visualizing the future
Annual Report 2015
25
The information under clauses 3(1)(b) & 4(1) of the Companies (Investment in Associated
Companies or Associated Undertakings) Regulations, 2012.
Ref.
No.
Requirement
Information
(i)
Name of the associated company or

associated undertaking along with
criteria based on which the associated
relationship is established;
Kohinoor Textile Mills Limited

(the KTML)
(ii)
Amount of loans or advances;
Rs.500 million (Rupees five hundred million only).
(iii)
Purpose of loans or advances and benefits

likely to accrue to the investing company
and its members from such loans or
advances;
Purpose: To earn income on the loan and/or

advances to be provided to KTML from time to
time for working capital requirements of KTML.
KTML is a holding company of Maple Leaf Cement

Factory Limited (the Company).
Benefits: The Company will receive mark up

at the rate of one percent above its average
borrowing cost. This shall benefit the Companys
cash flow by earning profit on idle funds.
Period: For a period of one year from November
01, 2015 to October 31, 2016 (both days inclusive).
26
(iv)
In case any loan has already been granted

to the said associated company or
associated undertaking, the complete
details thereof;
A similar nature of loan/advance facility of

Rs.300 million from time to time for working
capital requirements has been granted by the
valued shareholders of the Company vide special
resolution passed in the Annual General Meeting
held on October 30, 2014 which is valid till
October 31, 2015.
(v)
Financial position, including main items of

balance sheet and profit and loss account
of the associated company or associated
undertaking on the basis of its latest
financial statements;
Based on the audited financial statements for the

financial year ended 30 June 2015, the financial
position of KTML is as under:-
MAPLE LEAF CEMENT
Particulars

Paid up capital
Reserves
Surplus on revaluation
of land and investment
properties
Current liabilities
Current assets
Breakup value per
share (Rs.) without
revaluation
Sales
Gross Profit
Operating Profit
Net Profit
Earnings per share (Rs.)
Amount
Rupees (000)
2,455,262
5,554,966
3,673,825
5,185,753
5,338,022
32.62
15,862,743
2,729,989
2,897,223
2,086,833
8.50
Ref.
No.
Requirement
Information
(vi)
Average borrowing cost of the investing

company or in case of absence of
borrowing the Karachi Inter Bank Offered
Rate for the relevant period;
Average borrowing cost of the Company is 10.02%

for the year ended June 30, 2015.
(vii)
Rate of interest, mark up, profit, fees or

commission etc. to be charged;
Mark-up will be charged to KTML at one percent

above the average borrowing cost of the
Company.
(viii)
Sources of funds from where loans or

advances will be given;
Loan and / or advance will be given out of own

funds of the Company.
(ix)
Where loans or advances are being

granted using borrowed funds,(I) justification for granting the loan or
advance out of borrowed funds;
(II) detail of guarantees / assets pledged
for obtaining such funds, if any; and
(III) repayment schedules of borrowing of
the investing company;
(x)
Particulars of collateral security to be

obtained against loan to the borrowing
company or undertaking, if any;
(xi)
If the loans or advances carry conversion

feature i.e. it is convertible into
securities, this fact along with complete
detail including conversion formula,
circumstances in which the conversion
may take place and the time when the
conversion may be exercisable;
(xii)
Repayment schedule and terms of loans

or advances to be given to the investee
company;
N/A
No collateral is considered necessary since KTML

is a holding company of the Company.
N/A
The loan / advance would be for a period of one

year from November 01, 2015 to October 31, 2016
(both days inclusive). KTML will pay interest /
mark-up on quarterly basis whereas repayment
of principal amount shall be on or before October
31, 2016.
Annual Report 2015
27
Broader vision
28
MAPLE LEAF CEMENT
Ref.
No.
Requirement
Information
(xiii)
Salient features of agreements entered or

to be entered with its associated company
or associated undertaking with regards to
proposed investment;
Nature
Loan / advance
Purpose
To earn mark- up / profit

on loan / advance being
provided to KTML
which will augment the
Companys cash flow
Period
One Year
Rate of Mark-up :
Above one percent of the

average borrowing cost
of the Company
Repayment
Principal plus mark up/

profit upto October 31,
2016
Penalty charges :
(xiv)
Direct or indirect interest of directors,

sponsors, majority shareholders and
their relatives, if any, in the associated
company or associated undertakings or
the transaction under consideration; and
@ 3-months KIBOR plus

one percent in addition
to the outstanding
amount(s).
Investing Company i.e. the Company is a

subsidiary company of KTML and six Directors
being common in both the companies may be
deemed to be interested to the extent of their
shareholding.
None of the Directors or their relatives or
associates are interested in any of the above
resolution in any way except as members of the
Company.
(xv)
Any other important details necessary

for the members to understand the
transaction.
N/A
Six Directors including sponsor Directors of the Company are also the members of investee company i.e. KTML
and are interested to the extent of their shareholding as under:Name

Mr. Tariq Sayeed Saigol & his spouse
Mr. Zamiruddin Azar
%age of shareholding
in KTML
%age of shareholding
in the Company
4.2727
4.4098
0.1286
0.0289
0.0010
0.0024
0.3540
0.0010
0.0010
0.0010
0.0005
0.0020
Annual Report 2015
29
Directors Report
to the Shareholders
The Directors are pleased to present the 55th
annual report along with audited financial
statements and Auditors Report thereon for
the year ended June 30, 2015.
30
MAPLE LEAF CEMENT
The financial highlights are as follows:-
(Rupees in thousand)
Year Ended
2015 2014

Net Sales Revenue
20,720,054
18,968,547
Gross Profit
7,495,623
6,522,985
Operating Profit
5,583,550
5,055,173
Finance Cost
1,082,639
1,464,772
Profit Before Taxation
4,500,911
3,590,401
Taxation
1,046,616
760,227
Profit After Taxation
3,454,295
2,830,174
Earnings Per Share (Rs.)
6.55
5.36
The Company registered record net sales of
Rs.20,720 million against Rs.18,969 million in the
corresponding year, showing growth of 9.2% along
with stable cement price on account of volumetric
improvement in local dispatches due to enhanced
pace of economic activity. Higher disposable
income on account of reduced inflation impacted
demand favourably. This development accelerated
private sector construction activities and partial
materialization of budgeted Public Sector
Development Programme (PSDP) also gave a fillip
to construction activity. Housing projects were
initiated in all major cities of the country; and ones
already in process are moving speedily towards
completion. In the north zone markets, Maple Leaf
Cement is still the premium brand and is selling
its products at better prices compared to other
brands, resulting in improved retention prices per
ton. The Company is the largest manufacturer of
white cement in Pakistan with the highest retention.
During the year, white cement production and local
dispatches improved over the previous year due to

increase in demand.
Export volumes have also shown a rising trend with
growth of 9.1%. Gains were recorded in dispatches
to India and the rest of the world. This increase is
despite a dip in sales to Afghanistan by 30% due to
reduced activity after withdrawal of NATO forces
and competition from Iranian cement. The margins
on export business remained minimal during the
year. Iranian cement is also proving to be a threat
to the local industry which is imported into Pakistan
illegally and requires immediate attention of our
government. Recent imposition of anti-dumping
duties in South Africa has had no effect on us as
the Company is not exporting cement to South
Africa since more than a year. Our marketing
strategy was redirected to focus on other African
markets. However, this action by the South African
authorities has affected overall export volumes by
other manufacturers.
Annual Report 2015
31
Capacity utilization and dispatches also improved as evident from data shown below:
Particulars
2015
July to June
2014
Qty
Variance
% age

------------------M. Tons-----------------
Production
Clinker Production
2,824,854
2,694,848
130,006
4.82%
Cement Production
3,005,456
2,753,142
252,314
9.16%
Sales
Domestic
2,350,732
2,181,786
168,945
7.74%
Exports
609,769
559,115
50,654
9.06%

2,960,501 2,740,901 219,599
8.01%
Total sales volume of 2,960,501 tons achieved represents an increase of 8.01% over the corresponding period
last year. Domestic sales volume increased to 2,350,732 tons registering an increase of 7.74% and exports
sales volume increased to 609,769 tons, an increase of 9.06%.
Decline in commodity prices, particularly coal

prices, during the period resulted in lower fuel cost.
Power cost also reduced due to fall in electricity
charges on the back of fuel price adjustments
following declining oil prices. Moreover, during the
3rd quarter of the current period, the Company
has fully operated its Furnace Oil based engines
due to improved viability owing to low furnace oil
prices. However, during the year under review,
increase in packing material costs and pet coke
rates have slightly depleted margins. The Company
has prudently accounted for Gas Infrastructure
Development Cess (GIDC) costs after promulgation
of GIDC Ordinance, 2014, which has increased the
cost of doing business. However, the Company is
efficiently utilizing its Waste Heat Recovery Plant
alongwith the use of alternative fuels to counter this
which resulted in lowering the weighted average
cost of power. The Company is also continuously
benefiting from lower inland transportation costs
through haulage via the railway network resulting
in reasonable savings.
Keeping in view the above factors, gross profit
rose by Rs. 973 million to Rs. 7,496 million in the
current period, compared to Rs. 6,523 million
in the corresponding year which depicts better
operational performance than last year.
32
MAPLE LEAF CEMENT
Due to efficient monitoring and development of

operating procedures, administration and other
operating expenses have been kept in check.
Operating profits rose by Rs.529 million to Rs. 5,584
million during the period, compared to Rs. 5,055
million in the corresponding period last year.
Finance costs continue to reduce as the Company

deleverages due to robust cash flow generation
along with declining interest rates and debt equity
ratio also improved as shown below:-
The Company is paying off Sukuk / Syndicate

and other debt obligations at an accelerated
pace and is dedicated to keep current on all debt
commitments backed by better cash flows and
efficient cash management. Improved profit levels
and healthy cash flows have enabled the Company
to go for aggressive deleveraging. During the
year, the Company has reduced its debt burden
by Rs.4,098 million i.e. 46% reduction. As a result,
there is a notable decline of 26% in finance cost of
the Company along with substantial improvement
in the debt equity ratio.
The Company recorded post-tax profit of Rs.3,454
million during the year against Rs.2,830 million in
the corresponding period last year showing growth
of 22%.
sales growth, coal prices, reduced HFO prices and

reduction in finance cost. However, power cost
and load shedding increased during the year which
affected the cost of production. Effective utilization
of resources and power generation equipment
based on WHRP and backup HFO engines reduced
production cost which resulted in an increase in
operating profits as compared to projections.
NON FINANCIAL PERFORMANCE
Quality, customers satisfaction, employees
development and professional standards are
Companys key areas where management has
taken necessary measures to improve them. The
Company is currently producing and supplying
the high quality products which ensure maximum
satisfaction to the customers. During the year, the
Company has conducted various training courses
for the development of existing human capital.
The Company is maintaining a highly satisfactory
relationship with all stake holders. The Company has
formed various committees which are responsible
for the effective monitoring of key areas.
SEGMENTAL REVIEW OF BUSINESS PERFORMANCE
Dividend
Keeping in view the results, the Board of Directors
has announced final cash dividend at Re.1/- per
share i.e. 10%. This is in addition to the already paid
interim cash dividend @10% i.e. Re.1/- per share,
thus making a total cash dividend @20% i.e. Rs.2/per share for the year ended June 30, 2015.
ANALYSIS OF PRIOR PERIODS FORWARD LOOKING
DISCLOSURES
The Companys actual performance in the year
2014-15 exceeds the disclosures made in the prior
periods annual reports mainly due to favorable
The financial statements of the Company have been

prepared on the basis of single reporting segment.
Revenue from sale of cement represents 100% of
gross sales of the Company. Sale comprises 92.27%
of grey cement and 7.73% of white cement. The
Company operates in two principal geographical
areas, Asia and Africa. Moreover, all assets of the
Company as at June 30, 2015 are located in Pakistan.
MANAGEMENTS OBJECTIVES AND STRATEGIES
Prime objective of management is to change the
culture from a State Cement traditional hierarchy
and status quo enterprise to a customer driven,
empowered and cross functionality focused
company. Our objectives are determined to
increase our retention value along with reduction
Annual Report 2015
33
High standards
34
MAPLE LEAF CEMENT
in cost. We strive to achieve our objectives with

collective wisdom and empathy. We are committed
to enhance stakeholders value. To achieve our
corporate objectives, we have given priorities to
refine and implement our human resource policies and
Standard Operating Procedures (SOPs). Total Quality
Management (TQM) function has been implemented
that seeks to lower nonconformance costs through
an active focus on health, safety, environment,
housekeeping and operations.
Apart from the above, we have implemented scientific
performance evaluation techniques that are linked
to KPIs (Key Performance Indicators). We have also
developed Reliability Center Maintenance System
for achieving run factor of 330 days considering it
as an opportunity to improve our bottom line. We
believe that training is the source of all process driven
thinking. Local and international trainings for top
management were arranged during the year 201415 including 6 Sigma trainings. We have framed well
defined different teams to address the key areas like
Team energy, Team Reliability Centered Maintenance,
Team Improvement and Team Culture Development.
Priority is being assigned to control production cost.
We have reduced variable cost due to efficient energy
management and other cost reduction measures.
The todate results, financial and non-financial, are the
reflection of achievement of managements objective
which are strategically placed to increase the wealth of
stakeholders. The said results are properly evaluated
against the respective strategic objectives to confirm
the achievement.
There is no material change in Companys objective
and strategies from the previous year.
ENTITYS SIGNIFICANT RESOURCES
Our resources mainly consist of human resource,
financial resource, and technological resource. The
Company assorted and hired team of professionals
with enormous expertise in latest technologies
who proficiently design the ways for improving and
upgrading our production process, networking and
control systems. We have developed a dedicated team
to analyze the human resource right from selection till
retirement. We believe in adding value to our human
resource by extensive trainings and development
program.
LIQUIDITY AND CAPITAL STRUCTURE
Our liquidity condition has significantly improved
over the period with reduced payment cycle.
The management of the Company has breadth
of experience and knowledge of best practices
in liquidity management pertaining to policies,
processes, regulatory constraints, tax considerations
Annual Report 2015
35
and liquidity management system. Capital structure

mainly consists of ordinary share capital and long
term / short term debts. Management believes that
there is no inadequacy in capital structure in status
quo.
The Company is highly efficient to manage liquidity
risk and in order to cope with it, we invest only in
highly liquid resources to mitigate the risk. Efficient
utilization of available resources, better control over
production overheads and better retention resulted
in increased cash generation from operations and
recovery of losses. The Company continues with its
plan to utilize that cash generated from operations
for repayment of its debt on a timely basis, which
will result in the reduction of financial cost and
resultantly, net profit of the Company will be
increased.
SIGNIFICANT CHANGES IN FINANCIAL POSITION
During the year, Company has paid off its long term
debt and redeemable capital totaling to Rs. 4,098
Million, managed to improve debt equity ratio
from 48:52 to 27:73 and net cash generated from
operations increased by Rs. 732 million as compared
with previous period due to increase in sales and
reduction in finance cost. Moreover, the Company
has adopted the strategy to utilize maximum cash
profits for the payment of debts.
PROSPECTS OF THE ENTITY INCLUDING TARGETS
FOR FINANCIAL AND NON-FINANCIAL MEASURES
Prospects of the Entity The financial projections of
the Company are very encouraging with continued
growth expected locally and internationally as new
potential markets are being explored and various
measures adopted by the Company to reduce the
cost. Different marketing strategies are being
carried out to increase sales and profitability.
Financial Measures Various financial considerations
are used to make the projections of Maple Leaf
Cement. Following are the financial measures to
determine the healthy prospects of the Company:
1. Increase in sales volume for all types of products
with special emphasis on white cement.
2. Reduced cost of production through:
a. reduction in raw material cost per ton,
b. savings in fuel cost per ton including more
efficient yield,
c. lower power cost including decline in per
ton KWH power consumption; and
d. lower weighted average cost of capital
percentage.
36
MAPLE LEAF CEMENT
3. Reduction in debt burden based on healthy cash

flows to be generated from increased sales and
reduced costs as mentioned above to reinforce
the reduction in finance cost.
Non-Financial Measures Non financial measures
are the many intangible variables that impact
performance. These are difficult to quantify as
compared to financial measures but they are equally
important. Following are the non financial measures
of the Company:
1. Stakeholders engagement Through different
committees and forums, management expects
to further increase stakeholders engagement
and increase the awareness in different
qualitative aspects of the business through
cross functionality.
2. Customer satisfaction The Company places
great focus on customer satisfaction, and going
forward, this remains a prime objective of the
management.
3. Brand recognition Marketing efforts will be
in place to increase sales volume based on the
philosophy of being a brand where our product
is demanded by consumers to create a pull
effect.
4. Integrity of managers Being one of the core
values of the Company, trainings have been
planned to further drill this value into the middle
and lower staff.
Change in Performance Measures Based on
actual results for the year 2014-2015, the Company
has made the following revisions to its financial
measures:
1. Increase in sales target Since the sales for
the current year have exceeded budgets, an
upward revision has been made in the targets
for the next year.
2. Change in the power mix Due to reduction
in HFO cost, the Company has changed its
planning of the power mix and has planned to
use more HFO based power sources.
3. Fuel cost The price of coal has shown a constant
decline throughout the year and further fall
is also expected. Therefore, a corresponding
downward adjustment has been made to the
budgeted purchases of the Company.
4. Finance cost The government has reduced

the rate of borrowing which is now lower than
what was expected last year. Consequently
the Company has also made a reduction of its
budgeted finance cost.
KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of financial statements requires
management and the Board of Directors to make
estimates and judgments that affect reported
amounts of assets, liabilities, revenues, expenses
and related disclosure of contingencies. These
estimates are based on historical experience and
various other assumptions that management
and the Board believe are reasonable under the
circumstances, the results of which form the basis
for making judgments about the carrying values of
assets and liabilities that are not readily apparent
from other sources. Actual results may differ from
these estimates under different assumptions or
conditions.
Key estimates and assumptions concerning the
future include:
Estimating useful life of assets
The useful lives are estimated having regard to
the factors as asset usage, maintenance, rate of
technical and commercial obsolescence. The useful
lives of assets are reviewed annually.
Taxation
Determining income tax provisions involves
judgment on the tax treatment of certain
transactions. Deferred tax is recognized on tax losses
not yet used and on temporary differences where
it is probable that there will be a taxable revenue
against which these can be offset. Management
has made judgments as to the probability of future
taxable revenues being generated against which
tax losses will be available for offset.
Employee benefit scheme
The defined benefit obligations are based on
actuarial assumptions such as discount rate,
expected rate of return on plant assets, expected
rate of growth in salaries and expected average
remaining working life of employees which are
extensively detailed in note 14 to the financial
statements.
ENTITYS SIGNIFICANT RELATIONSHIPS

The Company has very prominent and good
relationships with all stakeholders. We maintain
collaborative relations with our stakeholders a
good harmony, effective communication and
customer focused approach because without doing
this we may affect our Companys performance
and values of our entity. We follow the best policy
to maintain the relationship with our stakeholders
which includes satisfaction of customers by
providing quality products and timely payments
to all creditors. The call centre established last
year is in full swing in achieving the main purpose
of being a bridge between the Company and its
stakeholders including customers and supply chain
staff. Moreover, the Company maintains good
relationship with its Bankers and also arranges
Investors Conferences periodically to discuss
business prospects and financial management
plans with the lenders which also enhances their
confidence on the Company.
INVESTORS GRIEVANCES POLICY
The Company believes that Investor service is a
vital element for sustained business growth and
we want to ensure that our Investors receive
exemplary service across different touch points
of the Company. Prompt and efficient service is
essential to retaining existing relationships and
therefore Investor satisfaction becomes critical
to the Company. Investor queries and complaints
constitute an important voice of Investor, and
this policy details grievance handling through a
structured grievance framework. Grievance policy is
supported by a review mechanism to minimize the
recurrence of similar issues in future. Investors has
the facility to call toll free call centre 24/7 to register
their grievances. The Companys Grievance policy
follows the following principles:
Investors are treated fairly at all times.
Complaints raised by Investors are dealt with
courtesy and in a timely manner.
Investors are informed of avenues to raise their
queries and complaints within the organization,
and their rights if they are not satisfied with the
resolution of their complaints.
Queries and Complaints are treated efficiently
and fairly.
The Companys employees work in good faith
and without prejudice towards the interests of
the Investors.
Annual Report 2015
37
CRITICAL PERFORMANCE MEASURES

Following are some of the critical performance measures and indicators against stated objectives of the
Company.
Objectives
Sr. No.
38
Measures
Improved capacity utilization

Companys production facilities
Modernization of production facilities in

order to ensure the most effective production
Reduction in unplanned stoppages
Effective marketing and innovative concepts
Increase in retention and sales volume
Implementation of effective human resource

solutions through personnel development,
creating proper environment for professional
growth of highly skilled professionals,
ensuring
safe
labour
environment,
competitive staff remuneration and social
benefits in accordance with scope and quality
of their work
Higher return on human capital
Effective use of available resources
Decrease in variable cost
Explore alternative energy resources
Reduced dependence on national grid
Further improvements in Code of Corporate

Governance through restructuring of assets
and optimization of management processes
Higher legal compliance level and reduction

in contingencies
Compliance with local and international

environmental and quality management
standards, implementation of technologies
allowing to comply with the limitations
imposed on pollutant emissions
Compliance with SOPs
Implementation of projects in social and

economic development of communities.
Allocation of funds for CSR and their

monitoring
MAPLE LEAF CEMENT
of
the
Number of days run factor
Management believes that current critical

performance measures continue to be relevant in
future as well.
HUMAN RESOURCE MANAGEMENT
The Company is committed to build a strong
organizational culture that is shaped by
empowered employees who demonstrate a deep
belief in Companys vision and values. Therefore
Human Resource Management (HRM) is an integral
part of our business strategy. The Company
fosters leadership, individual accountability and
teamwork. The main objectives of the Companys
HRM policy are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Emotional Intelligence
Effective Communication Skills
House Keeping
Project Management
Kiln Alignment
Supply Chain Management
Siemens PLC
OHSAS 18001 Lead Auditor
HSE SOPs
Shell Lubes
Simatic Program Logic Controllers
MARKET SHARE
Fostering the concept of team work and

synergetic efforts.
Presently the Company due to its unique marketing

efforts and superior quality has 7.4% market share
for grey cement (on capacity based) as evident
from the All Pakistan Cement Manufacturing
Association (APCMA) website. Therefore, the
Company is a leading brand in Pakistan with a
diverse customer base and presence in almost all
cities of Pakistan. Carrying on with the legacy of
Leaf, Maple Leaf brand is widely acknowledged
as best quality cement brand in all the markets,
where it is exported. It is also the largest producer
of White Cement in the country with more than
90% of local market share and the biggest white
cement exporter of Pakistan.
Encouraging and supporting team concepts

and team building techniques.
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

POLICY
Nurturing a climate of open communications

between management and employees.
The Companys Social and Environmental

Responsibility Policy reflects the Companys
recognition that there is a strong, positive
correlation between financial performance and
corporate, social and environmental responsibility.
The Company believes that the observance of sound
environmental and social strategies is essential for
building strong brand and safeguarding reputation,
which in turn is vital for long-term success.
Selecting the right person, with the right

experience, at the right time, offering the right
compensation.
Developing Management philosophies and
practices to promote and encourage motivation
and retention of the best employees.
Recognizing and rewarding
contribution to the business.
employees
Making all reasonable efforts to achieve a high

quality of work-life balance.
SUCCESSION PLANNING
The Company believes in proactive approach
towards succession planning. We recruit
employees, develop their knowledge, skills,
abilities, and prepare them for advancement
or promotion into ever more challenging roles.
Rigorous succession planning is also in place
throughout the organization. Succession planning
ensures that employees are constantly developed
to fill each needed role. We look for people who
exemplify continuous improvement when we are
spotting future successors. In this relation, the
Company also expends a lot in terms of finances
and time for the training of its resource as evident
from the below trainings held during the year:
Social Responsibility Policy:

Implementation of Employee Code of Conduct
that fits with local customs and regulations.
Culture of ethics and behavior which improve
values like integrity and transparency.
Focusing on social involvement by developing
multicultural teams with many different
competencies.
Promoting the culture of work facilitation and
knowledge transfer.
Carrying out corporate philanthropy actions
Annual Report 2015
39
that focus in particular on preserving life

and the environment.
Maintaining collaborative relations with
the society through a good harmony and
effective communication.
Environmental Responsibility Policy:
Ensure our products, operations and
services comply with relevant environmental
legislation and regulations.
Maintain and continually improve our
environmental management systems to
conform to the ISO Standards or more
stringent requirements as dictated by
specific markets or local regulations.
Operate in a manner that is committed to
continuous improvement in environmental
sustainability
through
recycling,
conservation of resources, prevention
of pollution, product development, and
promotion of environmental responsibility
amongst our employees.
Responsibly managing the use of hazardous
materials in our operations, products and
services, and promote recycling or reuse of
our products.
Inform suppliers, including contractors, of
our environmental expectations and require
them to adopt environmental management
practices aligned with these expectations.
CORPORATE SUSTAINABILITY
a) Corporate Social Responsibility
For community investment and welfare, the
Company acknowledges its responsibility
towards society and performs its duty by
providing financial assistance to projects for
society development by various charitable
institutions on consistent basis. The Company
has been recognized by Pakistan Centre for
Philanthropy as a leader in social and charitable
contributions and strikes to be a constructive
member of the communities in which it has
a presence. Kohinoor Maple Leaf Group has
received 7th Corporate Social Responsibility
40
MAPLE LEAF CEMENT
Making lives
beautiful
Annual Report 2015
41
To cater for the religious needs of the

employees, a new mosque was constructed
at plant site. Iftar party was arranged for all
management, CBA and workers to mark the
occasion.
Award 2015 on account of its performance in

various projects. The Company has taken an array
of initiatives for the welfare of its workforce, local
community as well as stakeholders. The Company
has contributed in medical social sciences project
and in this regard, has donated a state of the art
Cardiac facility to the Gulab Devi Chest Hospital
(GDCH) in Lahore by constructing Sayeed Saigol
Cardiac Complex (SSCC) at GDCH. Other initiatives
are as follows:
Maple Leaf is continually committed to its

Master Mistri Program which aims to enhance
skills and standard of living of masons. To
facilitate the program, Maple Leaf built a state
of the art lodge at its plant site for boarding
and lodging of masons.
Maple Leaf recognizes its responsibility to

contribute to the community including the
minority. In this regard, it provided support to
rebuild the Church at Iskendarabad.
Maple Leaf helped in the building of a police
line memorial at Iskendarabad in memory of
35 policemen who lost their lives serving their
country from 1986 till 2012.
Civil defense week was held from 24th
November 2014 to 3rd December 2014 for
training of staff in defense matters.
42
MAPLE LEAF CEMENT
b) Industrial Relations
The Company has set procedures, rules and
regulations which regulate employment guidance.
The Company has allocated Gratuity, Provident
Fund and Workers Profit Participation Fund for
its employees. The Company also pays bonuses to
employees on the basis of Companys profitability
and also awards performance bonuses to star
performers. Appropriate opportunity is provided
to employees to participate in Collective Bargaining
Agreement (CBA) activities and to elect a
representative of their choice. The Company is
committed to provide equal opportunity to all
existing and prospective employees without any
discrimination on the basis of religion, gender,
race, age etc. The Company also organized
several rewards and recognition programs for
acknowledgment of work done by its employees.
d) Consumer Protection Measures

We ensure that our products are shipped in a safe
manner complying with safety standards and legal
requirements. The Company takes care and applies
appropriate procedures to manufacture cement
products so as to ensure that no harmful substances
are present in its products. The Company has strict
policy to control any activity which is against the
consumer rights.
e) Employment of Special Persons
The Company has employed disabled persons in
compliance with the rules set out by the Government
of Pakistan which is 2% quota of the total workforce
necessitated to be allocated to disabled persons.
f) Community Investment and Welfare Schemes
c) Energy Saving Measures

Energy crisis is getting severe day by day in
Pakistan. We have developed a team energy that is
striving to get the best possible alternative sources
like efficient usage of Waste Heat Recovery Boiler,
LED lights, coal based boiler and other alternatives
including waste, rice husk and carbon black. Work is
being done actively on Coal Fired power plant and
it is expected to be commissioned and running in
the first half of 2017. We have also maintained such
methods to avoid maximum WAPDA peak hours
utilization. Also, planning is under way to automate
the switching of lights based on light conditions.
This will save energy as currently some lights are
inadvertently left on during day time.
The Company has a strong tradition of good

community relations and its employees are actively
involved in welfare schemes. We believe that
investing in our communities is an integral part of
our social commitment to ensure the sustained
success of the Company. We aim to ensure that
our business and factory have the resources and
support to identify those projects, initiatives and
partnerships that can make a real difference in their
communities.
Management of the Company, for maintaining
healthy and green environment, celebrated the
World Environment Day in coordination with
District Officer Environment Mianwali along with
other community stakeholders on June 5th, 2015.
The aim of celebrating World Environment Day
was to demonstrate the continual efforts and the
commitment of the Companys Management for
the healthy Working environment and awareness of
Annual Report 2015
43
people through the Environment walk and Seminar

in pursuance of the community investment and
welfare schemes.
serious diseases. The management realizes the

importance of its activities and continues to play an
active role in this regard.
In pursuance of the green vision and commitment of

Top Management of the Company for maintaining
healthy and green environment, Maple Plantation
Day was carried out at Maple Leaf Cement Factory
Limited Iskandarabad, Mianwali on 28th March,
2015. The main aim of the ceremony was to
demonstrate the continual efforts and commitment
of the Companys Management for the healthy
working environment for its workers as well as for
the people in neighborhood of the Company.
h) Health Care
The Company celebrated The World Water Day on

the 20th of March at site with the collaboration of
community and DO Environment. The main purpose
of the seminar was to raise the awareness of the
inter-linkages between water and energy.
Maple Health Care Center is a health facility

concept with state of the art equipment for the
health benefit of the employees of Maple Leaf
and their dependants. Negotiations with Shifa
International Hospitals Limited were started in
2013 for the construction and operation of the said
facility. These negotiations have been finalized in the
current financial year. Architect design was finalized
in November 2014. Presently it is in the construction
phase. Shifa International is a known name in
Pakistan with hospitals in Islamabad and Faisalabad.
Once this facility is operational, the health standards
of the employees will go up.
Meanwhile, the free medical and hospital center
is treating patients with the help of quality
human capital working there. Keeping in view the
occupational health of employees, regular first aid
and Cardiopulmonary Resuscitation (CPR) training
programs are conducted to ensure safe health of
workers.
i) Education and Training for Corporate

Sustainability
g) Rural Development Program
Being setup in a rural area, The Company realizes
its responsibility to create awareness amongst
the local masses relating to dengue and other
serious diseases through awareness campaigns
and various other techniques. The area of the plant
site is deprived with updated facilities and medical
aid. In such a case, prevention becomes more
important than cure but unfortunately due to lack
of knowledge, new cases keep coming up of such
44
MAPLE LEAF CEMENT
The Company is fully aware of its responsibility

towards imparting education to future generation.
For this purpose the Company has established five
schools in Iskandarabad city, which provide quality
education not only to children of employees of
the Company but also to the local residents. The
Company has provided building and complete
infrastructure to these schools. In addition, the
Company gives monthly subsidy to partly cover
the running expenses. About 3,637 students are
currently enrolled in these schools.
MITIGATING EFFORTS TO CONTROL INDUSTRY

EFFLUENTS
Traditionally, cement plants are not considered
to be environment friendly but the Company
has installed most modern and state of the art
equipments to control industry effluents. In order
to mitigate the effects of industrial effluents on the
surrounding environment, the Company is putting
forth all efforts for providing a healthy environment
to employees and natives. In this regard following
major environment friendly efforts are carried out
by the Company:
1)
Regular
Monthly
basis
environmental
monitoring for stack emissions and effluents
complying with Natural Environmental Quality
Standards.
2) The Company has state of the art FLS cement
manufacturing technology, equipped with
the world class dust collection electrostatic
precipitators and bag filters for environment
protection.
3) Massive Tree Plantation Program was carried
out for maintaining healthy and green
environment as a part of Corporate Social
Responsibility in coordination with District
Officer (Environment) Mianwali.
4) The Company has its own hospital and trauma
center at plant site. Keeping in view the
occupational health of employees, regular first
aid and CPR training programs are conducted
to ensure the safe health of workers.
QUALITY MANAGEMENT SYSTEMS
The Company manufactures cement through the
plant based on the state of the art technology of
world renowned FL Smidth Automation Denmark.
Quality is assured through systematic and
effective adoption, implementation, monitoring
and continuous enhancement of quality control
systems using latest methods of analysis. To ensure
that each bag being used by our valued customers
/ consumers is of the highest quality, all stages of
the production process right from the selection of
raw materials, drying, grinding, homogenization,
clinkerization and the finished product are tested
rigorously. The quality check parameters during
each level of the process are monitored and
controlled by the latest version of technology &
equipment connected on-line with Central Control
Room through PLC system. The frequency of

sampling and testing along with control parameters
is defined.
Procedures Adopted for Quality Assurance:
The main purpose is to ensure that the cement
produced:
meets all the standards requirements to which
the Company is certified; and.
not only meets customers requirements but
exceed their requirements and expectations.
To achieve these goals, the Quality Control
Department has adopted various procedures and
is fully equipped with state-of-the art technologies
such as:
X-ray Fluorescent Analyzers and X-ray
Diffraction analyzer to analyze chemical and
mineralogical composition.
On line QCX system software.
Sample preparation tools such as a jaw crusher,
sample dividers, disk grinding mill, mixer mill
and press mills.
Automatic Moisture Analyzers.
Precision Electronic Balances.
Drying Ovens & Furnaces.
Lab glassware.
Automatic Free Lime Apparatus.
PC Based Automatic Calorimeter and Sulfur
Determinator to analyze fuels.
Latest Automatic Compressive Strength
machines for determination of cement
compressive strength.
Latest whiteness tester.
OCCUPATIONAL HEALTH, SAFETY AND
ENVIRONMENTAL (HSE) PROTECTION MEASURES
The Company is committed to achieve excellence
in Occupational Safety, Health and Environmental
protection. The Company encourages awareness
in these areas amongst our employees, customers,
suppliers and all those who are associated with
us in our activities. Our goal in respect of safety,
health and environment is to minimize all adverse
environmental and health impacts arising out of our
operations and to conserve all kinds of resources
and adhere to all legal regulations.
Maintenance of health and safety standards at our
plants and offices is our top priority. The Company is
committed to actively managing health and safety
risks associated with our business and is actively
working towards improving our procedures to
reduce, remove or control the risk of fire, accidents
Annual Report 2015
45
or injuries to employees and visitors. The Company strives to provide a safe and healthy workplace for
its employees and to act responsibly towards the communities and environment, in which it operates.
the highest professional standards of work. Management takes all possible measures to prevent unsafe
and operational policies. The environmental friendly projects completed at our plants include:
Waste Heat Recovery Plant: Through this project the Company has been able to replace 16 MW of grid
electricity by utilizing exhaust gases emitted to the atmosphere through the stacks of clinker cooler and
Trees Plantation: To enhance environmental standards and continuously promoting a better and Green
Environment within the factory as well in the nearby areas, the Company is arranging regular Tree Plantation
factory premises and nearby areas to provide a healthy environment to employees and other community
living in surroundings. This activity will continue in the future and further trees will be planted to ensure
healthy and green environment.
BUSINESS ETHICS & ANTI-CORRUPTION MEASURES
The Company, through its training, management standards and procedures, aims to develop a disciplined
and constructive control environment in which all employees understand their roles and obligations.
Employees are encouraged to report any deal that may be supported by kickbacks. No employee is allowed
46
MAPLE LEAF CEMENT
to run a parallel business. The Company is maintaining sophisticated Oracle based online software using
which any employee can report the non-conformance (NC) to the top management. All the NCs reported
are being addressed by the top management on a timely basis and a regular follow up activity is being
carried out in order to ensure that all issues highlighted are being resolved permanently. Moreover, the
Company has also formulated whistle blowing policy.
NATIONAL CAUSE DONATIONS
During the year, Company has donated to Abdul Razzaq Fazaia College Mianwali and National Tennis
Academy. The Company has also donated in the form of cement for construction of schools, mosques
and other social projects.
CONTRIBUTION TO NATIONAL EXCHEQUER
During the year, Company has contributed an amount of Rs. 5,060 million towards national exchequer
in the shape of taxes, duties, cess, levies etc. The Company has also contributed through earnings of
valuable foreign exchange amounting to US$ 35 million.
Annual Report 2015
47
FORWARD LOOKING STATEMENT

Going forward, we expect local dispatches to
further improve in coming period due to increase
in demand of cement for public sector projects
like small dams, roads and bridges together with
increased construction activities in the private
sector as a result of expected better performance
of the economy. Mortgage financing is also
expected to grow due to fall in interest rates and
positive economic outlook. Cement dispatches may
also increase on account of reconstruction of
infrastructure damaged due
to the recent floods.
However, cement prices are
expected to remain stable. The
cement industry is also eyeing
the developments on China Pakistan
Economic Corridor (CPEC) and this
opportunity is expected to prove to
be a great prospect for speeding up
the countrys economic development,
as many agreements worth billions of
dollars for investment in projects of
infrastructural development have been
signed which should increase demand
for cement in the mid-term.
The Afghanistan market is contracting
on account of availability of inexpensive
Iranian cement which is a worrying factor.
Owing to this development, the Company is
determined to explore new export markets
to improve capacity utilization.
As oil prices are expected to remain
bearish, the Company will continue to
enjoy savings resulting from the usage
of its HFO based standby engines
to generate lower cost power
with less reliance on the national
grid. Fuel price adjustment relief
is also expected to continue in the
near term. We expect profitability
of the sector to enhance further owing to record
low coal price of USD57.25/ton (Richards Bay 6000
benchmark) depicting 13% drop from start of 2015.
These factors should result in overall reduction of
power cost and should keep margins robust. Other
cost reduction efforts continue to be the main
focus in all operational areas and the Company has
adopted various strategies to reduce cost including
use of alternative fuels and optimized operations
of the plant. The Company is actively working on
setting up a 40MW coal based captive power plant
which is expected to further reduce power cost and
48
MAPLE LEAF CEMENT
reliance on the national grid and act as an antidote

to gas curtailment. The letter of credit is expected
to be established in October 2015.
BEST CORPORATE REPORT AWARD
The Company again bagged award for Best
Corporate Report 2014 in the award ceremony
jointly hosted by the Institute of Chartered
Accountants of Pakistan (ICAP) and Institute of Cost
and Management Accountants of Pakistan (ICMAP)
on 4th September 2015. This award
for Best Corporate Report secured
by the Company is a reflection of
following best ethical values and
management practices in corporate
reporting. The Company has promoted
accountability and transparency through
provision of accurate, informative, factual
and reader friendly Annual Reports on timely
basis for the valuable stake holders.
BUSINESS CONTINUITY
RECOVERY PLAN
and
DISASTER
The Board of Directors periodically reviews

the Companys business continuity & disaster
recovery (BC/DR) plan to ensure that critical
business functions will be available to
customers, suppliers, regulators, and other
entities that have access to those functions
even under extraordinary circumstances. BC/DR
plan mainly include daily tasks such as customer/
suppliers correspondence, production data,
trading activities, project management,
system backups and help desk operations.
The primary activities of the Board for the
execution of the plan include:
2)
3)
4)
5)
1) To develop and maintain a formal plan

that is responsive to the Companys
current business needs and operating
environment.
To ensure that a business continuity recovery
team includes representatives from all business
units.
To provide ongoing business continuity
training to all employees, including executive
management and the board.
Ensure that thorough current business impact
analysis and risk assessments are maintained.
Ensure a centralized executive view of the
business continuity plan and programs.
Daring endeavors
Annual Report 2015
49
Rewarding
experience
50
MAPLE LEAF CEMENT
CEO PERFORMANCE REVIEW

The performance of the CEO is regularly evaluated by the Board
of Directors and this evaluation is based on the criteria defined by
the Board of Directors which includes various financial and non
financial key performance indicators. At the start of the year, CEO
presents his key performance indicators (KPIs) for the upcoming
year to the Board of Directors. The Board periodically evaluates
the actual performance against those KPIs during the year and
discusses the future course of action to attain the Companys
stated goals. The CEO also appraises to the Board regarding an
assessment of senior management and their potential to achieve
the objectives of the Company.
COMPLIANCE OF THE CODE OF CORPORATE GOVERNANCE
The Board reviews the Companys strategic direction and business
plans on a regular basis. The Audit Committee is empowered
for effective compliance of the Code of Corporate Governance.
The Board is committed to maintaining a high standard of good
corporate governance.
Your Directors are pleased to report that:
a) The financial statements, prepared by the management
present fairly its state of affairs, the result of its operations,
cash flows and changes in equity.
b) Proper books of account have been maintained by the
Company.
c) Appropriate accounting policies have been consistently
applied in the preparation of financial statements and
accounting estimates are based on reasonable and prudent
judgment.
d) International Financial Reporting Standards, as applicable in
Pakistan, have been followed in the preparation of financial
statements and any departures there from have been
adequately disclosed and explained.
e) The existing internal control system and procedures are
continuously reviewed by the internal auditor. The process of
review will continue by the Audit Committee to monitor the
effective implementation.
f) There are no significant doubts upon the Companys ability to
continue as a going concern.
g) Key operating and financial data of last six years is annexed.
h) The value of investment of provident fund and gratuity trust,
based on their respective unaudited accounts of June 30, 2015
is as under:

Annual Report 2015
51

Provident Fund
Gratuity Fund

Rupees in thousand
461,135
69,447
There has been no material changes since June 30,

2015 except as disclosed in this annual report and
the Company has not entered into any commitment,
which would affect its financial position at the date
except for those mentioned in the audited financial
statements of the Company for the year ended June
30, 2015.
During the year, the Company has complied with all
applicable provisions, filed all returns / forms and

furnished all the relevant particulars as required
under the Companies Ordinance, 1984 and allied
rules, the Securities and Exchange Commission
of Pakistan (SECP) Regulations and the listing
requirements.
DIRECTORS AND BOARD MEETINGS
During the year under review, four meetings of the
Board of Directors were held in Pakistan and no
meeting was held outside Pakistan. Attendance by
each Director was as follows:-
Sr. #
Name of Directors
Designation
1)
2)
3)
4)
5)
6)
7)
8)

Mr. Zamiruddin Azar
Mr. Karim Hatim
Chairman / Non Executive Director

CEO / Executive Director
Non Executive Director
GDF / CFO / Executive Director
Independent Non Executive Director
Meetings attended
4
4
3
3
3
4
4
3
Leave of absence was granted to the Directors who could not attend the Board meetings.
ANNUAL EVALUATION OF BOARD PERFORMANCE
The Board has set a criterion based on emerging and leading practices to assist in the self-assessment of an
individual director and the full Boards performance. It is not intended to be all-inclusive. When completing the
performance evaluation, Board considers the following main performance evaluation process or behavior:
i)
ii)
iii)
iv)
v)
Adequate Board composition.

Satisfactory Processes and Procedures for Board meetings.
The Board sets objectives and formulates an overall corporate strategy.
The Board has set up adequate number of its Committees.
Each Director has adequate knowledge of economic and business environment in which the Company
operates.
vi) Each Board member contributes towards effective and robust oversight.
vii) The Board has established a sound internal control system and regularly reviews it.
viii) The Board reviews the Companys significant accounting policies according to the financial reporting
adequate regulatory framework.
ix) The Board considers the quality and appropriateness of financial accounting and reporting and the
transparency of disclosures.
EVALUATION CRITERIA OF BOARD PERFORMANCE
Following are the main criteria:
1.
2.
3.
4.
52
Financial policies reviewed and updated;

Capital and operating budgets approved annually;
Board receives regular financial reports;
Procedure for annual audit;
MAPLE LEAF CEMENT
5.
6.
7.
8.
Board approves annual business plan;

Board focuses on goals and results;
Availability of Boards guideline to management;
Regular follow up to measure the impact of
Boards decisions;
9. Assessment to ensure compliance with the
code of ethics and corporate governance.
QUALIFICATION OF CFO AND HEAD OF INTERNAL
AUDIT
The Chief Financial Officer and the Head of Internal
Audit possess the requisite qualifications and
experience as prescribed in the Code of Corporate
Governance.
FORMAL ORIENTATION TRAINING PROGRAM FOR
DIRECTORS
AUDITORS
The present auditors of the Company M/s. KPMG
Taseer Hadi & Co., Chartered Accountants audited
the financial statements of the Company and have
issued a report to the members.
The auditors will retire at the conclusion of the
Annual General Meeting. Being eligible, they
have offered themselves for re-appointment. The
Board has recommended the appointment of M/s.
KPMG Taseer Hadi & Co., Chartered Accountants
as auditors for the ensuing year, as suggested by
the Audit Committee, subject to the approval of
the members in the forthcoming Annual General
Meeting.
ACKNOWLEDGEMENTS
The Board had arranged Orientation Courses for its

Directors namely, Mr. Danial Taufique Saigol and
Syed Mohsin Raza Naqvi, during the preceding years
from recognized institutions of Pakistan approved
by the SECP whereas some Directors having the
requisite experience on the Board(s) of Listed
Companies are exempt from the Directors Training
Program. Further, the Directors have also provided
declarations that they are aware of their duties,
powers and responsibilities under the Companies
Ordinance, 1984 and the Listing Regulations of the
Stock Exchanges.
The Board takes this opportunity to express its deep

sense of gratitude and thanks to the shareholders,
employees, customers, bankers and other
stakeholders for the confidence and faith they have
always reposed in us.
TRANSACTION / TRADE OF COMPANYS SHARES
Lahore: September 09, 2015
For and on behalf of the Board
(Sayeed Tariq Saigol)

Chief Executive
The Board has reviewed the threshold for disclosure

of interest by executives holding of Companys
shares which include CEO, CFO, Head of Internal
Audit and Company Secretary. However, during
the financial year, none of the Directors, CEO, CFO,
Head of Internal Audit and Company Secretary
(including their spouses and minor children) traded
in the shares of the Company.
PATTERN OF SHAREHOLDING
Pattern of shareholding of the Company in
accordance with the Companies Ordinance, 1984
and Code of Corporate Governance as at June 30,
2015 is annexed.
Annual Report 2015
53
Brief Profile of Directors

MR. TARIQ SAYEED SAIGOL
(CHAIRMAN / DIRECTOR)
OTHER ENGAGEMENTS
CHAIRMAN / DIRECTOR
Maple Leaf Capital Limited
CHAIRMAN / CHIEF EXECUTIVE / DIRECTOR
Kohinoor Maple Leaf Industries Limited
Zimpex (Private) Limited
Mr. Tariq Sayeed Saigol is the Chairman of Kohinoor
Maple Leaf Group (KMLG). He is a member of the
reputed Saigol Family who pioneered in textile
manufacturing after partition and later ventured
into the financial sector, chemicals, synthetic
fibres, sugar, edible oil refining, civil engineering,
construction, cement and energy.
Mr. Saigol was schooled at Aitchison College, Lahore
and graduated from Government College, Lahore
following which, he studied Law at University Law
College, Lahore.
He started his career in 1968 at Kohinoors Chemical
Complex at Kala Shah Kaku. Upon trifurcation of
the Group in 1976, he became Chief Executive of
Kohinoor Textile Mills Limited, Rawalpindi. Since
1984, he has been Chairman of Kohinoor Maple Leaf
Group which has interests in textiles, energy and
cement manufacturing.
He remained Chairman of All Pakistan Textile Mills
Association from 1992 to 94, President of Lahore
Chamber of Commerce and Industry for 1995-97 and
Chairman of All Pakistan Cement Manufacturers
Association from 2003-2006.
Mr. Saigol was a member of the Federal Export
Promotion Board and Central Board of State
Bank of Pakistan. He has also served on several
Government Commissions and Committees on a
number of subjects, including Export Promotion,
reorganization of WAPDA and EPB, Right Sizing
of State owned Corporations and Resource
Mobilization. He is the author of Textile Vision 2005
which was adopted by the Government in 2000 and
its critique prepared in 2006. He joined the Central
54
MAPLE LEAF CEMENT
Board of State Bank of Pakistan for a second term

in 2007 and was a member of the Prime Ministers
Economic Advisory Council established in 2008.
He takes keen interest in the development of
education in Pakistan. He has been a member of
the Board of Governors of Lahore University of
Management Sciences, Aitchison College, Founding
Chairman of the Board of Governors of Chandbagh
School, Founder Trustee of Textile University of
Pakistan and member of the Syndicate of University
of Health Sciences. He is conferred with Sitara-eIsaar by President of Pakistan in 2006.
He is a keen golfer and has represented Pakistan at
Golf in Sri Lanka and Pakistan in 1967.
MR. SAYEED TARIQ SAIGOL
(CHIEF EXECUTIVE / DIRECTOR)
OTHER ENGAGEMENTS
DIRECTOR
Mr. Sayeed Tariq Saigol is the Chief Executive of
Maple Leaf Cement. He graduated from McGill
University with a degree in management. Mr.
Sayeed Saigol also has several years of work
experience in the textile industry. Prior to joining
Maple Leaf Cement he was involved in setting up
and managing an apparel dyeing company. He is a
member of the Board of Governors of the Lahore
University of Management Sciences.
MR. TAUFIQUE SAYEED SAIGOL
(DIRECTOR)
OTHER ENGAGEMENTS
CHIEF EXECUTIVE / DIRECTOR
DIRECTOR
Zimpex (Private) Limited
Standing to deliver
Annual Report 2015
55
Mr. Taufique Sayeed Saigol is the Chief Executive

of Kohinoor Textile Mills Limited and director in all
KMLG companies. He is a leading and experienced
industrialist of Pakistan. He graduated as an
Industrial Engineer from Cornell University, USA in
1974. He is widely traveled and his special forte is in
the export business.
He is a business man of impeccable credibility and
vision and has substantial experience of working in
different environments.
MR. WALEED TARIQ SAIGOL
(DIRECTOR)
OTHER ENGAGEMENTS
DIRECTOR
CHIEF EXECUTIVE / DIRECTOR
Mr. Waleed Tariq Saigol is the Managing Director of
Kohinoor Textile Mills Limited (Raiwind Division). He
holds a bachelors degree in Political Science from
the London School of Economics & Political Science.
Apart from his responsibilities in textiles he is also
involved in identifying and developing new areas of
business for KMLG. He is a keen golfer and has won
several tournaments in Pakistan.
MR. DANIAL TAUFIQUE SAIGOL
(DIRECTOR)
OTHER ENGAGEMENTS
DIRECTOR
Mr. Danial Taufique Saigol is the younger son of Mr.
Taufique Sayeed Saigol, CEO of KTML. Danial began
his career with KMLG in January 2012 as a Director.
He holds a bachelors degree in Finance from McGill
University, Montreal, Canada. He is currently posted
at Kohinoor Textile Mills, Rawalpindi.
SYED MOHSIN RAZA NAQVI
(GROUP DIRECTOR FINANCE /
CHIEF FINANCIAL OFFICER)
OTHER ENGAGEMENTS
DIRECTOR / CHIEF FINANCIAL OFFICER
Mr. Mohsin Naqvi is Fellow Member of the Institute
of Chartered Accountants of Pakistan with over 26
56
MAPLE LEAF CEMENT
years of Financial Management experience.

His areas of expertise include financial projections,
forecasting-short term and long-term cash flows,
business strategy development, acquisitions
and evaluations of business units, establishing
companys reporting structure, implementing
budgetary control procedures, implementing
financial software, organizing finance and treasury
functions of the Company.
He is a former board member of Kohinoor Mills
Limited and Al-Wazan Group, Kuwait and Trust
Investment Bank Limited.
He has an experience of working in several countries
which include Saudi Arabia, Kuwait, Philippines,
Morocco, Jordan and Pakistan.
MR. ZAMIRUDDIN AZAR
(DIRECTOR)
Mr. Zamiruddin Azar has been actively involved in
various corporate activities of the Kohinoor Maple
Leaf Group. As a non-executive director, he is also
Chairman of the Audit Committee. With 35 years
of experience at Glaxo Pakistan, Mr. Azar provides
invaluable insight into project management, human
resource development and administration.
MR. KARIM HATIM
(DIRECTOR)
Mr. Karim Hatim, being an Independent nonexecutive Director is the member of the Audit
Committee of the Company and having relevant
industry experience. He is a Fellow Member of the
Institute of Chartered Accountants of Pakistan and
has more than sixteen years of Investment Banking
experience involving Business Development,
Corporate Finance and Advisory Services, Treasury,
Capital Markets and Credit Appraisal. He has
conducted several specialized assignments in
Finance, Audit and Tax.
As Investment Banking Head at Pak Kuwait
Investment Company (PKIC), Mr. Hatim was
instrumental in reviving the deal pipeline of the
company and enhancing fee income. He led the
entire process of successfully setting up a Non
Bank Finance Company and a Brokerage House as
subsidiaries of PKIC. During this time, he worked on
several big ticket privatization and balance sheet
restructuring mandates. Prior to that, he worked
in senior roles at Ford Rhodes, Standard Chartered,
Mercantile Leasing Limited and Paramount Leasing
Limited. He also served as a Chief Operating Officer
at NBP Capital Limited.
The Board Structure and its Committees

BOARD STRUCTURE
Following are the Board members along with their status.
NAME STATUS
MR. TARIQ SAYEED SAIGOL
SYED MOHSIN RAZA NAQVI
MR. TAUFIQUE SAYEED SAIGOL
MR. ZAMIRUDDIN AZAR
MR. KARIM HATIM
Chairman/Non-Executive Director
CEO/Executive Director
GDF/CFO/Executive Director
Independent Non Executive Director
AUDIT COMMITTEE
NAME DESIGNATION
MR. ZAMIRUDDIN AZAR
MR. KARIM HATIM
Chairman / Non Executive Director

Member / Independent Non Executive Director
Member / Non Executive Director
Member / Non Executive Director
A total number of five meetings of the Audit Committee were held during the year. The attendance of each
member was as under:NAME MEETINGS ATTENDED
MR. ZAMIRUDDIN AZAR
5
MR. KARIM HATIM 4
3
4
Leave of absence was granted to the Members who could not attend the meetings.
Terms of Reference
The Main terms of reference of the Audit Committee of the Company include the following:a.
b.
Determination of appropriate measures to safeguard the Companys assets;

Review of quarterly, half-yearly and annual financial statements of the Company, prior to their
approval by the Board of Directors, focusing on:
Major judgmental areas;
Significant adjustments resulting from the audit;
The going concern assumption;
Any changes in accounting policies and practices;
Compliance with applicable accounting standards;
Compliance with listing regulations and other statutory and regulatory requirements; and
Significant related party transactions.
Annual Report 2015
57
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
Review of preliminary announcements of results prior to publication;

Facilitating the external audit and discussion with external auditors of major observations arising from
interim and final audits and any matter that the auditors may wish to highlight (in the absence of
management, where necessary);
Review of management letter issued by external auditors and managements response thereto;
Ensuring coordination between the internal and external auditors of the Company;
Review of the scope and extent of internal audit and ensuring that the internal audit function has
adequate resources and is appropriately placed within the Company;
Consideration of major findings of internal investigations of activities characterized by fraud,
corruption and abuse of power and managements response thereto;
Ascertaining that the internal control systems including financial and operational controls, accounting
systems for timely and appropriate recording of purchases and sales, receipts and payments, assets
and liabilities and the reporting structure are adequate and effective;
Review of the Companys statement on internal control systems prior to endorsement by the Board
of Directors and internal audit reports;
Instituting special projects, value for money studies or other investigations on any matter specified by
the Board of Directors, in consultation with the CEO and to consider remittance of any matter to the
external auditors or to any other external body;
Determination of compliance with relevant statutory requirements;
Monitoring compliance with the best practices of corporate governance and identification of
significant violations thereof; and
Consideration of any other issue or matter as may be assigned by the Board of Directors.
HUMAN RESOURCE & REMUNERATION COMMITTEE (HR & R COMMITTEE)

NAME DESIGNATION
MR. ZAMIRUDDIN AZAR
Chairman (Non Executive Director)

Member (Non Executive Director)
Member (Non Executive Director)
NUMBER OF MEETINGS HELD - 01

(All Members attended the meeting other than

Mr. Waleed Tariq Saigol).
Terms of Reference
The Main terms of reference of HR&R Committee of the Company include the following:The Committee shall be responsible to:
i)
recommend human resource management policies to the Board;
ii)
recommend to the Board the selection, evaluation, compensation (including retirement benefits) and
succession planning of the CEO;
iii) recommend to the Board the selection, evaluation, compensation (including retirement benefits) of
CFO, Company Secretary and Head of Internal Audit. This will include benefits in kind, pension rights
and compensation payments, including any compensation payable for loss or termination of their
office or appointment and;
iv) consider and approve on recommendations of CEO on such matters for key management positions
who report directly to CEO.
a.
b.
58
The remuneration of executive and non-executive Directors shall not fall within the preview of the HR
& R Committee.
Recommendations in respect of compensation including performance incentives will ensure that:
The Company is able to recruit, motivate and retain persons of high ability, caliber and integrity.
The packages are consistent with what is normal in industry and / or specific job wise, as
determined through surveys conducted.
Incentives where applicable are based on criteria which have been carefully examined, discussed
and authorized.
MAPLE LEAF CEMENT
Creating a difference
Annual Report 2015
59
c.
d.
e.
Selection recommendation should ensure that the Company has a formal selection procedure which
provides for;
A description of the position that requires to be filled with a profile of the ideal candidate;
Selection Boards for various levels of recruitment;
Performance evaluation should:
Be based on procedures formally specified and which override individual likes and dislikes;
Provide for a discussion of the Annual Performance Report with each manager concerned.
The Committee will also:
Review and approve compensation payable to senior management for any loss or on termination
of service to ensure that it is consistent with contractual terms and is otherwise fair.
Review and advise on the training, development and succession planning for the senior
management with reference to the Boards corporate goals and objectives.
Devise a procedure for the approval of HR related policies of the Company.
Review from time to time as appropriate these Terms of Reference and the effectiveness of the
Committee and recommend to the Board any necessary changes.
Team Energy
Higher management of the Company has formulated a team of pioneer executives with diversified skills to
cope up with the situation regarding increased Energy cost for cement manufacturing. Energy consumption
is quite intensive at cement plant; therefore the price fluctuation of cement requires some cheap and
energy efficient solutions. The team has been working since two and a half years to ensure the improved
performance through prudent energy use by the process of monitoring, controlling, and conserving energy
in the organization. Composition of team is as follows:
MEMBERS:
MR. ABDUL HANAN
MR. AMIR FEROZE
MR. ARIF IJAZ
MR. BILAL HUSSAIN

NUMBER OF MEETINGS HELD 49
MR. MUHAMMAD BASHARAT

MR. NASIR IQBAL
MR. SOHAIL SADIQ
MR. WAHEED RASHID
MR. ZEESHAN MALIK BHUTTA
Team Improvement
A team of proficient personnel has been formulated to encourage the concept of sustainable development
through total quality management that supports the process of continuous improvement of products and
processes involved within the organization. They accentuate on the development of long term strategies
for achieving the Company objectives for sustainable development and reinforce the culture of quality. All
stages of the production process right from the selection of raw materials, processing of materials and the
finished product are subjected to rigorous quality testing to ensure that each bag of cement is of the best
quality.
MEMBERS:
MR. ABDUL HANAN
MR. AMER BILAL
MR. AMIR FEROZE
MR. ARIF IJAZ
MR. BILAL HUSSAIN
MR. FAROOQ AHMAD HASHMI
60
MAPLE LEAF CEMENT
MR. MOBIN AHMED

MR. MUHAMMAD SAJJAD
MR. SOHAIL SADIQ
MR. WAHEED RASHID
MR. YAHYA HAMID
Team Reliability Centered Maintenance

Reliability Centered Maintenance (RCM) Team has been established to evaluate the equipments condition
and then determine the maintenance requirements for each piece of equipment in operating context of
our cement plant. RCM Team is specialized in using various maintenance techniques such as predictive,
preventive and proactive maintenance to keep in pace all the machinery and equipment for their adequate
functionality and to increase cost effectiveness, machine uptime, and a greater understanding of the level of
risk that the organization is presently managing.
MEMBERS:

MR. ABDUL HANAN
MR. AMER BILAL
MR. AMIR FEROZE
MR. ARIF IJAZ
MR. BILAL HUSSAIN

MR. MOBIN AHMAD

MR.MUHAMMAD BASHARAT
MR. NASIR IQBAL
MR. TARIQ MIR
MR. UMAR BUTT
Team Culture
To promote socio-economic culture, arts and national heritage, a team is engaged in our organization.
Keeping in mind the social, cultural and economic needs of employees and workers, it proposes strategies
to ensure well being of people and to have all participate in sports and active recreation. It sets out to make
Maple Leaf Cement Factory Ltd a culture supporter organization in Pakistan, to harness the creativity of the
employees and where all people are treated equally.
MEMBERS:

MR. ABDUL HANAN
MR. AMIR FEROZE
MR. ARIF IJAZ
MR. BILAL HUSSAIN
MR. FAROOQ AHMAD HASHMI

MR. MUHAMMAD SAJJAD
MR. SOHAIL SADIQ
MR. WAHEED RASHID
NUMBER OF MEETINGS HELD -19
Annual Report 2015
61
Policy and procedures for stakeholders

Engagement
1) Policy Note:
Maple Leaf Cement maintains sound collaborative relationships with its stakeholders.
2) Procedures:
Procedure for stakeholders engagement includes effective communication, good harmony, compliance
with laws & regulations and customer focused approach which is the key success factor for establishment of
collaborative relationship with stakeholder.
3) Engagement Frequency:
STAKEHOLDERS
NATURE OF ENGAGEMENT
FREQUENCY
SHAREHOLDERS
Annual general meeting
Annually

Annual report / Quarterly reports
Annually / Quarterly

Investor conference
Annually

Analyst briefing
Continuous

EMPLOYEES
Trade unions
Continuous

Maple magazine
Quarterly

Annual get together
Annually

Team cultural activities
Monthly

CUSTOMERS
Customer call center
Continuous

Customer events
Continuous

Customer satisfaction survey
Continuous

SUPPLIERS
Regular meeting with major
Continuous
suppliers Occasionally

Supplier forums
As required

Newspapers advertisement

INSTITUTIONAL
Business briefings
Occasionally
INVESTOR / LENDERS
Periodic meetings
As required

Financial reporting
Continuous

Head office / site visits
As required

COMMUNITY
Environmental campaign
Continuous
ORGANIZATIONS
Safety management system
As required

MEDIA
Media announcements and briefings
As required

Media interviews
As required

REGULATORS
Submission of periodic reports
Periodic basis

Responding / enquiring various
As required

queries / information

ANALYST
Corporate briefing and analysis
As required

Forecasting and financial modelling
62
MAPLE LEAF CEMENT
Carrying with pride
Annual Report 2015
63
SWOT analysis
SWOT analysis is being used at Maple Leaf Cement as a strategy formulation tool, in order to match our
strengths with perceived opportunities and minimize our weaknesses to avoid market and other threats.
Management at Maple Leaf considers the following factors of SWOT analysis relevant to us:-
STRENGTHS
WEAKNESSES
Single largest cement producing site in Pakistan.

State of the Art FL Smidth plants.
Higher EBITDA %.
Excellent logistic management.
Fully diversified Cement Producer.
Strong Local and International branding
Offering over 330 days/year production.
Well diversified fuel mix and efficient operation.
Well developed and refined human resource.
Lowest Energy cost per ton of clinker.
Cyclical industry.
High transport cost.
Highly regionalized and localized
market.
High electricity cost.
Energy load shedding.
High taxation.
OPPORTUNITIES
THREATS
Focus on cost optimization

Huge govt. expenditure in infrastructure
development.
Availability of housing loan from financial
institutions.
Rising population works as a catalyst for
housing boom.
Low per capita consumption.
Research to develop new products
Long term growth at the rate of 7% to 8%
Rising cost of logistics.

Rising cost of power and.
Currency devaluation risk.
New entrant threats due to high
potential market.
High incidence of taxes.
ISSUES RAISED IN THE LAST ANNUAL GENERAL MEETING (AGM)

On query of a shareholder, the Chairman of the meeting briefed that the Company was continuing to repay
Sukuk / Syndicate and other debt obligations and was dedicated to keep current on all debt commitments
backed by better cash flows and efficient cash management. During the period, the Company had paid off
Rs.3,043 million of long-term debt and profit before tax witnessed a healthy turnaround. He added that
management was eagerly focusing on maximum deleveraging thus ensuring massive decline in borrowing
cost.
Regarding provision of taxation, chairman informed the House that through Finance Bill 2014, Alternative
Corporate Tax @17% on accounting profit (instead of current 34% tax on taxable income) had been imposed.
The 17% income-tax on accounting profit was applicable retrospectively, with effect from tax year 2014 i.e.
64
MAPLE LEAF CEMENT
financial year ended June 30, 2014. Therefore, substantial tax provision had been provided resulting in high
effective tax rate of 21.17% resulting in post tax profit of Rs.2,830 million during the period against post
tax profit of Rs.3,225 million in the corresponding period last year. Imposition of alternative corporate tax
on accounting profit was unjust and unfair. Owing to discriminatory regime, it was most likely that the
management might contemplate to file a writ petition against such inequitable levy. Honourable Sindh High
Court had already granted stay order to some companies. The Group Director Finance explained the basis of
working of deferred taxation.
On another query of a shareholder regarding current performance and future prospects, the Chairman of
the meeting informed the Shareholders that operating profits were depicting a sizeable growth mainly
due to optimum use of resources, cost containment measures and dynamic marketing efforts. Federal and
Provincial governments had jointly allocated over Rs.1 trillion for PSDP along with increasing urban housing
needs of 3 million units, thus private construction projects would give a boost to cement demand in the
current year. Cement prices could rise due to higher demand and may result in improved profitability in the
current year.
Regarding non-payment of dividend since long, the House was informed that the Board of Directors did not
recommend to pay any cash dividend due to financial limitations and covenants agreed with the various
financial institutions. However, the Directors were confident that they would be in a position to consider
dividend payment to the shareholders next year after the covenants agreed with the creditors had been
met.
Implementation of issue raised in the last AGM
The Board of Directors of the Company in their meeting held on 09 September 2015 has proposed a final
cash dividend of 10%, i.e., Rupees. 1 Per share for the year ended 30 June 2015. This dividend is in addition to
interim cash dividend of 10% i.e. Rupees. 1 per share which has already been paid.
Safety of Record
Conflict of Interest Management Policy
MLCF is effectively implementing the policy to

ensure the safety of the records. All records must
be retained for as long as they are required to
meet legal, administrative, operational, and other
requirements of the Company. The main purposes
of the Company Policy are:
To ensure that the Companys records are created,
managed, retained, and disposed off in an effective
and efficient manner;
To facilitate the efficient management of the
Companys records through the development of a
coordinated Records Management Program;
To ensure preservation of the Companys records
of permanent value to support both protection
of privacy and freedom of information services
throughout the Company to promote collegiality
and knowledge sharing;
Information will be held only as long as required
and disposed off in accordance with the record
retention policy and retention schedules and
Records and information are owned by the
Company, not by the individual or team.
Policy Statement
The company has the policy for actual and perceived
conflicts of interest and measures are adopted to
avoid any conflict of interest, identify the existence
of any conflict of interest, and to disclose the
existence of conflict of Interest. The Company
annually circulates and obtains a signed copy of
Code of Conduct applicable to all its employees
and directors, which also relates to matters relating
to conflict of interest. Further, it seeks to set out
the process, procedures and internal controls to
facilitate compliance with the Policy as well as to
highlight the consequences of non-compliance
with the Policy by all its employees and directors.
The Company Policy provides a guide as to what
constitutes a conflict of interest, the processes
and procedures that are in place in order to
facilitate compliance and, the consequences of noncompliance. The Policy is intended to assist directors
and employees in making the right decisions when
confronted with potential conflict of interest issues.
Annual Report 2015
65
Management of Conflict of Interest:

The primary goal of MLCF policy is to manage
conflicts of interest to ensure that decisions are
made and are seen to be made on proper grounds,
for legitimate reasons and without bias. To do this
MLCF has set the following procedures to manage
and monitor the conflict of Interest:
1. Identify areas of risk.
2. Develop strategies and responses for risky
areas.
3. Educate all employees about the conflict of
interest policy.
4. Communicate with stakeholders to provide the
platform for proper disclosure.
5. Enforce the policy.
Further, the directors are annually reminded of the

insider trading circular issued by the Securities and
Exchange Commission of Pakistan to avoid dealing
in shares while they are in possession of the insider
information. Every director is required to provide to
the Board complete details regarding any material
transaction which may bring conflict of interest
with the Company for prior approval of the Board.
The interested director does not participate in the
discussion neither they vote on such matters. The
transactions with all the related parties are made
on an arms-length basis and complete details are
provided to the Board for their approval. Further
all the transactions with the related parties are
fully disclosed in the financial statements of the
Company.
ROLE OF CHAIRMAN AND THE CEO

The Companys Chairman reports to the Board and the CEO reports to the Chairman (acting on behalf of the
Board) and to the Board directly. Their respective roles are being described hereunder:
Role of the Chairman
Role of the CEO
Principal responsibility is the effective running of the

Board.
Principal responsibility is running the Companys

business.
Responsible for ensuring that the Board as a whole

plays a full and constructive part in the development
and determination of the Companys strategy and
overall commercial objectives.
Responsible for proposing and developing the

Companys strategy and overall commercial
objectives, which he does in close consultation with
the Chairman and the Board.
Guardian of the Boards decision-making processes.
Responsible with the executive team for

implementing the decisions of the Board and its
Committees.
Responsible for promoting the highest standards

of integrity, probity and corporate governance
throughout the Company and particularly at Board
level.
Responsible for promoting, and conducting the

affairs of the Company with the highest standards
of integrity, probity and corporate governance.
IT governance policy
MLCF has properly documented and implemented IT Governance Policy to ensure an integrated framework
for evolving and maintaining existing information technology and acquiring new technology to achieve the
Companys strategic focus. The purpose of this policy is to define the IT governance scope, and its roles and
responsibilities. IT Governance policy consists of the following:
It provides a structured decision making process around IT investment decisions.
Promotes accountability, due diligence, efficient and economic delivery of the Companys IT services.
It lays down a solid foundation for management decision making and oversight.
Safeguard of Companys financial data.
Development and upgradation of different modules to provide reliable, efficient and timely information.
To create a culture of paperless environment within the Company.
66
MAPLE LEAF CEMENT
Adding colors to life
Annual Report 2015
67
Whistle Blowing Policy

In accordance with the Companys continued commitment to Good Governance a Whistle Blowing policy
has been adopted. The policy ensures that the Whistle Blower will be fully protected and the said nonconformance will be investigated in a fair, transparent, reliable and principled manner.
Highlights of the policy are as follows:
1. All Protected Disclosures should be addressed to the nominated Ombudsman of the Company.
2. The Protected Disclosures should be reported in writing clearly stating the issue that is being raised. It
should be preferably typed but legible handwritten versions in English or Urdu are also acceptable.
3. The Protected Disclosures should be forwarded with a covering letter bearing the identity of the whistle
blower.
4. Anonymous disclosures will not be entertained.
5. If in an initial enquiry by the Ombudsman, it is felt that the complaint is not substantial, it can be dismissed.
6. If initial enquiry establishes that further investigation is necessary, the Ombudsman will ensure that an
investigation is carried out in a neutral and fair manner without the presumption of guilt. A written
request of the finding will be prepared.
7. Further investigation shall only be carried out if the Ombudsman feels that the complaint is factual,
fair and not speculative. It should contain as much factual information to necessitate a preliminary
investigation.
In MLCF, no whistle blowing incidence was highlighted and reported under the above said procedures during
the year.
68
MAPLE LEAF CEMENT
Report of the Audit Committee

The Audit Committee comprises of one independent
non-executive Director and three non-executive
Directors. The Chief Financial Officer, the Chief
Internal Auditor and the external auditors attend
the Audit Committee meetings as provided in the
Code of Corporate Governance. Five meetings of
the Audit Committee were held during the year
2014-2015. Based on reviews and discussions in
these meetings, the Audit Committee reports that:
7. The Board has established internal audit

function being an independent appraisal
function for the review of the internal control
system in all areas of the business activity
and provides management with objective
evaluations, appraisals and recommendations
on the adequacy, effectiveness and compliance
with each system reviewed.
1. The Audit Committee reviewed and approved

the quarterly, half yearly and annual financial
statements of the Company and recommended
them for approval of the Board of Directors.
8. Companys internal audit function is headed

by a Chartered Accountant with a team of
professionals who are suitably qualified and
experienced and well aware of the Companys
policies and procedures.
2. Appropriate accounting policies have been

consistently applied. All core and other
applicable International Accounting Standards
were followed in the preparation of financial
statements of the Company on a going concern
basis, which present fairly the state of affairs,
results of operations, cash flows and changes
in equity of the Company.
3. Accounting estimates are based on reasonable
and prudent judgment. Proper and adequate
accounting records have been maintained by
the Company in accordance with the Companies
Ordinance, 1984, and the external reporting is
consistent with management processes and
adequate for shareholder needs.
4. The Audit Committee reviewed and approved
all related party transactions.
5. No cases of material complaints regarding
accounting, internal accounting controls or
audit matters or Whistle Blowing were received
by the Committee.
6. The Companys system of internal control is
sound in design and is continually evaluated for
effectiveness and adequacy.
9. Internal audit function operates under the

charter approved by the Audit Committee and
head of the internal audit function has direct
access to the Audit Committee.
10. Companys internal audit function prepares
annual plan for the financial year and a strategic
audit plan for following two years during which
all major systems and areas of activity will be
audited. Annual and strategic audit plan is
approved by the Audit Committee.
11. Internal audit reports include findings,
conclusions, recommendations and action
plans agreed with management. These are
reported promptly to the appropriate level of
management. Follow up in implementation is
ensured.
12. The Audit Committee, on the basis of the
internal audit reports, reviewed the adequacy
of controls and compliance shortcomings in
areas audited and discussed corrective actions
in the light of managements responses.
This has ensured the continual evaluation of
controls and improved compliance.
Annual Report 2015
69
13. The Audit Committee ensured that statutory and regulatory obligations and requirements of best
practices of governance have been met.
14. The external auditors KPMG Taseer Hadi & Co,. Chartered Accountants, were allowed direct access to
the Audit Committee and necessary coordination with internal auditors was also ensured. Major findings
arising from audits and any matters that the external auditors wished to highlight were freely discussed
with them.
15. The Audit Committee reviewed the Management Letter issued by the external auditors and the
management response thereto. Observations were discussed with the auditors and required actions
recorded.
16. Appointment of external auditors and fixing of their audit fee was reviewed and the Audit Committee
following this review recommended to the Board of Directors re-appointment of KPMG Taseer Hadi &
Co., Chartered Accountants, as external auditors for the year 2015-2016.
By order of the Audit Committee
(Zamiruddin Azar)
Chairman, Audit Committee
09 September 2015
70
MAPLE LEAF CEMENT
Risk and opportunity report

Objectives:
The goal of Board of Directors is to minimize all risks and take advantage of potential opportunities in order
to systematically and sustainably improve the value of the company for all stakeholders. Management has
adopted a risk management approach and internal control framework, based on its business philosophy and
corporate objectives, which is explained step by step below:
A. Strategy Formulation

Management reviews the Statement of Strategic Objectives annually that represent the Stakeholder
expectations and are the lead indicators for determining the success level of the Company. In order
to materialize the objectives, Management adopts certain strategies. These strategies are approved
by the Board of Directors and are subject to adjustment, depending upon any changes in the external
business environment or internal organizational factors.
B.
Risk Assessment
Risk assessment is an on-going process that highlights numerous uncertainties that poses potential
threats which may hinder the accomplishment of objectives of the Company. If these risks are not
being addressed in timely manner, may culminate in loss. Such risks and uncertainties can arise both
from external as well as internal factors within the Company. Broad categories of risks which may
hinder operations of the Company are as follows:
Risks Type
Implication
Strategic Risks
Strategic risks can be defined as the uncertainties and untapped opportunities

embedded in strategic intent. These risks are key matters for the Board of
Directors, and impinge on the whole business, rather than just an isolated unit.
Commercial Risks
Commercial risks refer to potential losses arising from the trading partners or
the market in which the Company operates.
Operational Risks
Operational risks refer to risks resulting from breakdowns in internal

procedures, people and system.
Financial Risks
Financial risk is an umbrella term for multiple types of risk associated with
financing, profitability, liquidity and credit.
C.
Materiality approach
Management believes materiality as a key component of an effective communication with

stakeholders. The management has adopted materiality approach which is based on a combination of
stakeholder engagement, under-standing of environmental limits and strategic alignment. It has made
the process, assumptions and evidence base for identifying material issues for more transparent,
credible and amenable disclosures to have more transparency on risk and opportunities.
Not being conclusive, management considers that following are the major risks which may affect the
operations of the Company and mitigating strategies for these risks.
Annual Report 2015
71
D.
72
Risk and Counter Strategy Matrix

Corporate Objective
Risk
Mitigation Strategies
Industry Competition:
To maintain Companys
prominent position one
of the leading brands of
cement industry of Pakistan.
Strategic Risk:
Due to the significant focus of
the present government on
infrastructure and PSDP, there
is increased potential for major
players of the industry.
Through efficient use of

marketing strategy, Maple
Leaf is creating a pull effect by
locking-in its customers and also
to tap potential markets.
Financial Risk:
Increased packing cost and
power generation cost may
result in increase in cost of
production
and
squeeze
margins for the Company.
The Company is actively looking

into alternate sources of power
generation to reduce cost.
Legislative
and
Legal
Environment:
To operate in a stable
market being compliant
with all relevant laws of the
country and international
regulations.
Strategic Risk:
Continuous changes in the
regulatory framework and
statutory obligations may result
in non compliance.
Management is pro actively

following any changes occurring
in the regulatory framework
relating to the cement sector.
Technology:
To automate and upgrade
supporting processes and
related MIS in relation to
production of cement to
speed up such activities.
Strategic Risk:
Lag in production reporting
due to different MIS platforms
may result in delayed decision
making for corrective actions.
Management
continuously
investing considerable amounts
for upgradation of technological
infrastructure in order to
harmonize the MIS platform
throughout the Company.
Operations:
To ensure continuity of
operations without any
disruptions in production
and minimize idle time.
Operational Risk:
Machinery
breakdown
/
stoppages adversely affect the
profitability of the entity as it
hinders production and delays
operation.
To avoid such stoppages, a

reliability centre has been
established which runs a
number of operational checks
to ensure smooth operations
and avoid breakdown.
Human Capital:
To have an adequate reserve
of trained professionals
excelling in their respective
domains.
Operational Risk:
Loss of the qualified
competent staff.
Succession
planning
and
capacity building of existing
resources are one of the primary
focus of the Company.
Health and safety:

To ensure health and safety
of employees in workplaces.
Operational Risk:
Accidents can take place which
can cause serious injuries to
employees, and also cause
disruptions in operations.
MAPLE LEAF CEMENT
and
A sound system of HSE is in

place for timely identification of
potential hazards and to remove
such threats.
s
m
a
e
r
d
rging
Eme
Annual Report 2015
73
Corporate Objective
Risk
Mitigation Strategies
Logistics:
To ensure availability of
coal
for
uninterrupted
operations.
Commercial Risk:
Due to dependency on Pakistan
Railways for coal transportation,
delays can occur owing to
strikes or railway breakdown.
Adequate stock levels have

been maintained with provision
of such incidents in mind.
Finance:
To maintain strong financial
position
and
produce
financial performance which
is reflective of the Companys
scale of business and
Shareholders expectations
Financial Risk:
Increase in the cost of
borrowing may adversely affect
the profitability of the Company.
Management has addressed

the risk of shortage of working
capital by availing sufficient
lines from the diversified
financial institutions in order
to meet the short term finance
requirements of the Company.
Moreover average credit period
of the Company is also being
improved along with improved
operation cycle.
Payment defaults by counter

parties may leave the Company
with inadequate resources for
discharging its own liabilities.
Strong follow up and adherence

to procedures and credit terms
ensures that the risk of default
from counter parties is kept to
a minimum. Adequate steps are
taken for any dispute that may
arise.
E.
Opportunity Analysis
Following are the highlights of potential opportunities of the Company:

Unlocking and exploiting operational opportunities is an important aspect of MLCF entrepreneurial
activities. We are committed to using existing products and new solutions in order to systematically
enhance our Growth and strengthen our position in global markets. Investing in new projects and
increasing the Productivity of existing ones are key elements for future organic growth. In the year
under review, we strengthened the basis for further growth in the coming years by making selective
investments in our existing businesses and developing innovations that support in the achievement
of companys stated vision.
Share Price Sensitivity Analysis

Companys share price is directly linked with the operational and financial performance of Company.
Following are the major factors which might affect the share price of the Company in the stock exchanges.
74
1)
INCREASE IN DEMAND:
Increase in demand of cement may result in increase in market price of bag which will contribute
towards better profitability and Earning per Share (EPS), which will ultimately increase the share
price.
MAPLE LEAF CEMENT
2)
INCREASE IN VARIABLE COST:
Any increase in variable cost (Mainly includes Coal, Power and Raw Material Cost) may badly effect
the gross margins and will exultancy fall in the profitability and all in EPS. This may badly affect the
market price of the share downward.
3)
INCREASE IN FIXED COST:
Fixed cost mainly consists of financial charges, exchange losses, and other overheads. If SBP Discount
rate goes up, rupee devaluation occurs and increase in inflation happens than net profitability of the
Company will be affected and will have negative effect on the EPS which results into fall in share
prices. It they said factors happen on the positive sides than share price will improve.
4)
CHANGE IN GOVERNMENT POLICIES:
Any change in government policies related to cement sector may affect the share price of the
Company. If policy change is positive than share price will increases, otherwise vice versa.
BUSINESS FINANCIAL FORECAST

The Company expects local dispatches to further improve in coming period due to increase in demand of
cement for public sector projects and construction activities in the private sector. As oil prices are expected
to remain bearish, the Company will continue to enjoy savings resulting from the usage of its HFO based
standby engines and generate power at lower cost with less reliance on the national grid. The Company
also expects coal prices not to exceed current levels significantly in line with other energy commodities.
Reduction in the Companys weighted average borrowing costs should also improve the profitability. Future
financial forecast based on managements best estimates are as follows:
Financial Year
2015-2016
2016-2017
Net Revenue (Rs. in 000)
22,587,773
24,419,093
Gross Profit

Current Ratio
37.20%
38.15%
0.80
1.01
FAIR VALUE OF PROPERTY, PLANT AND EQUIPMENT

The Companys buildings on freehold land, roads, bridges and railway sidings and plant and machinery are
stated at revalued amount being the fair value at the date of revaluation less any subsequent accumulated
depreciation and impairment losses as per stated company policy. Freehold land is stated at revalued
amount being the fair value at the date of revaluation less any subsequent impairment loss in the financial
statements.
SUMMARY OF SIGNIFICANT / MATERIAL ASSETS OR IMMOVABLE PROPERTY
The Companys material assets comprise of land, building, three complete cement lines (including one white
cement line) comprising of kiln, cooler, preheater, raw mills etc., Wartsila, Niigata engines and waste heat
recovery plant.
Annual Report 2015
75
CALENDAR OF NOTABLE EVENTS

JULY 2014 - JUNE 2015
22-Oct
2014
17-Sep
2014
Issuance of 1st
Quarter
Accounts
Issuance of
Annual Report
2014
10-Aug
2014
Management
Club Ghala
Dinner
Annual General
Meeting
2014
Family
Day Out
World Water
Day
31-Jan
27-Jan
2014
2015
Civil Defense
Week
Issuance of
Half Year
Accounts
04-Jan
2015
Mehfil-e-Milad
MAPLE LEAF CEMENT
2015
2014
15-Nov
24-Nov
76
20-March
30-Oct
2015
Winter
Gala
28-March
2015
23-April
2015
Issuance of 3rd
Quarter
Accounts
Maple
Plantation
Day
Organization Chart
SHARE HOLDERS
BOARD OF DIRECTORS
( Functional Reporting)
Board Committees
( Functional Reporting)
DGM
RCM
DGM
Project
DGM
Mechinical
DGM Logistics
DGM
Electrical
Annual Report 2015
77
Definitions and glossary of terms

Gross Profit Ratio
Profit Margin
The relationship of the gross profit made for a

specified period and the sales or turnover achieved
during that period.
Determined by dividing net income by net

sales during a time period and is expressed as
a percentage. Net profit margin is a measure of
efficiency and the higher the margin, the better.
Trends in margin can be attributed to rising/falling
production costs or rising/falling price of the goods
sold.
Net Profit Ratio

Net profit ratio is the ratio of net profit (after taxes)
to net sales.
Operating Profit Ratio
The operating profit margin ratio indicates how
much profit a company makes after paying for
variable costs of production.
Current Asset Ratio
The key indicator of whether you can pay your
creditors on time. The relationship between current
assets like cash, book debts, stock and work in
progress and current liabilities like overdraft, trade
and expense creditors and other current debt.
Current Ratio
A companys current assets divided by its current
liabilities. This ratio gives you a sense of a companys
ability to meet short-term liabilities, and is a measure
of financial strength in the short term. A ratio of 1
implies adequate current assets to cover current
liabilities: the higher above 1, the better.
Debt-Equity Ratio
The ratio of a companys liabilities to its equity. The
higher the level of debt, the more important it is
for a company to have positive earnings and steady
cash flow. For comparative purposes, debt-equity
ratio is most useful for companies within the same
industry.
Earnings Per Share (EPS)
The portion of a companys profit allocated to
each outstanding share of common stock. Earnings
per share serve as an indicator of a companys
profitability.
78
MAPLE LEAF CEMENT
Return on Assets
The amount of profits earned (before interest and
taxes), expressed as a percentage of total assets.
This is a widely followed measure of profitability,
thus the higher the number the better. As long
as a companys ROA exceeds its interest rate
on borrowing, its said to have positive financial
leverage.
Return on Equity (ROE)
A percentage that indicates how well common
stockholders invested money is being used. The
percentage is the result of dividing net earnings
by common stockholders equity. The ROE is used
for measuring growth and profitability. You can
compare a companys ROE to the ROE of its industry
to determine how a company is doing compared to
its competition.
Return on Investment (ROI)
Also known as return on invested capital (ROIC).
ROI is a measure of how well management has
used the Companys resources. ROI is calculated
by dividing earnings by total assets. It is a broader
measure than return on equity (ROE) because
assets include debt as well as equity. It is useful to
compare a companys ROI with others in the same
industry.
Annual Report 2015
79
32.43
-
(2.87)
(46.59)
14.19
12,911,658
-
4,751,082
5,414,116
8,144,461
4,891,515
10,137,641
7,132,572
9,749,577
-
(3.17)
(15.39)
(16.76)
43.99
-
5,051,836
11,981,790
8,568,551
6,770,913
-
(4.66)
(7.80)
(19.20)
76.84
-
5,298,809
12,995,935
10,604,368
3,828,861
-
(4.49)
(11.31)
2.41
22.20
-
5,548,120
14,653,399
10,355,310
100.00
26.19
10.77
3,133,287 (24.21)
- (100.00)
-
11,611,919
29.31
9,348,815 (6.16)
4,134,208 (38.46)
1,000,000 100.00
7,495,623
(1,313,696)
(381,363)
(263,187)
46,173
5,583,550
(1,082,639)
4,500,911
(1,046,616)
3,454,295
Gross profit
Distribution cost
Administrative expenses
Other operating expenses
Other operating income
Profit / (Loss) from operations

Finance cost
Profit/(loss) before taxation

Taxation
Profit/(loss) after taxation
22.05
25.36
37.67
3.86
(14.07)
7.91
32.16
16.78
18.02
95.18
2,830,174
(12.23)
3,590,401
13.53
(760,227) (1,324.59)
10.45
5,055,173
(26.09) (1,464,772)
14.91
6,522,985
24.60 (1,054,336)
28.54 (296,689)
33.35
(197,372)
(42.70)
80,585
3,224,695
3,162,615
62,080
4,867,267
(1,704,652)
6,045,035
(797,751)
(254,065)
(167,239)
41,287
549.89
612.19
19.09
74.16
(27.48)
50.57
(5.71)
(1.69)
11.73
21.18
377.31
8.50
496,194 (128.05)
444,066 (128.09)
52,128 (127.71)
2,794,631
(2,350,565)
4,014,773
84.57
(846,098) (48.62)
(258,433)
11.98
(149,681)
(7.83)
34,070 (92.43)
(25.98) 2,938,628 (40.69)

(47.77) (3,152,889)
34.75
18.86
(194,161)
28.09
2.37
(158,641) 275.47
689.31
57,031 (7.64)
(1,769,036)
(1,580,911)
(188,125)
(31.54) (2,583,955)
162.87
(38.47) (2,569,508) 180.01

1,202.17
(14,447) (77.88)
585,498 (214.80)
(510,032) (120.54)
(2,166,409)
5.19 (2,059,476) (39.43)
2,175,159
(1,646,632)
(230,788)
(162,394)
450,153
Total assets
31,221,317
(2.16)
31,911,305
(1.43)
32,373,090
(1.08)
32,727,973 (2.86)
33,690,116
29.11 26,094,942
1.69

Sales - net
20,720,054
9.23 18,968,547
9.28
17,357,376
12.26
15,461,356
18.27
13,073,218
(4.09) 13,630,511 (10.63)
Cost of sales
(13,224,431)
6.26 (12,445,562)
10.02 (11,312,341)
(1.17) (11,446,583)
5.03 (10,898,059)
1.93 (10,691,883)
3.84
Total equity and liabilities

31,221,317
(2.16)
31,911,305
(1.43)
32,373,090
(1.08)
32,727,973 (2.86)
33,690,116
29.11 26,094,942
1.69

Total non-current assets
23,782,112
(3.97) 24,765,860
(3.60)
25,690,184
(4.29)
26,841,888 (5.07)
28,275,751
34.06 21,092,208
3.16
Total current assets
7,439,205
4.11
7,145,445
6.92
6,682,906
13.54
5,886,085
8.71
5,414,365
8.23 5,002,734 (4.07)
Total equity
Share deposit money
Total surplus on revaluation
of fixed assets
Total non-current liabilities
Total current liabilities

2015
15 vs 14
2014
14 vs 13
2013
13 vs 12
2012
12 vs 11
2011
11 vs 10
2010
10 vs 09

Rs. 000
%
Rs. 000
%
Rs. 000
%
Rs. 000
%
Rs. 000
%
Rs. 000
%
Balance Sheet
Horizontal Analysis - Six Years
80
MAPLE LEAF CEMENT
7,495,623
(1,313,696)
(381,363)
(263,187)
46,173
5,583,550
(1,082,639)
4,500,911
(1,046,616)
3,454,295
Gross profit
Distribution cost
Other operating expenses
Other operating income
Profit / (Loss) from operations

Finance cost
Profit/(loss) before taxation

Taxation
Profit/(loss) after taxation
16.67
21.72
(5.05)
26.95
(5.23)
36.18
(6.34)
(1.84)
(1.27)
0.22
2,830,174
3,590,401
(760,227)
5,055,173
(1,464,772)
6,522,985
(1,054,336)
(296,689)
(197,372)
80,585
14.92
18.93
(4.01)
26.65
(7.72)
34.39
(5.56)
(1.56)
(1.04)
0.42
3,224,695
3,162,615
62,080
4,867,267
(1,704,652)
6,045,035
(797,751)
(254,065)
(167,239)
41,287
18.58
18.22
0.36
28.04
(9.82)
34.83
(4.60)
(1.46)
(0.96)
0.24
496,194
444,066
52,128
2,794,631
(2,350,565)
4,014,773
(846,098)
(258,433)
(149,681)
34,070
3.21
2.87
0.34
18.07
(15.20)
25.97
(5.47)
(1.67)
(0.97)
0.22
(1,769,036)
(1,580,911)
(188,125)
585,498
(2,166,409)
2,175,159
(1,646,632)
(230,788)
(162,394)
450,153
(13.53)
(12.09)
(1.44)
4.48
(16.57)
16.64
(12.60)
(1.77)
(1.24)
3.44
(2,583,955)
(2,569,508)
(14,447)
(510,032)
(2,059,476)
2,938,628
(3,152,889)
(194,161)
(158,641)
57,031
(18.96)
(18.85)
(0.11)
(3.74)
(15.11)
21.56
(23.13)
(1.42)
(1.16)
0.42
Total assets
31,221,317 100.00
31,911,305
100.00
32,373,090
100.00
32,727,973
100.00
33,690,116
100.00
26,094,942
100.00

Sales - net
20,720,054 100.00 18,968,547
100.00
17,357,376
100.00
15,461,356
100.00
13,073,218
100.00
13,630,511
100.00
Cost of sales
(13,224,431) (63.82) (12,445,562)
(65.61)
(11,312,341)
(65.17) (11,446,583)
(74.03) (10,898,059)
(83.36)
(10,691,883) (78.44)
Total equity and liabilities

31,221,317 100.00
31,911,305
100.00
32,373,090
100.00
32,727,973
100.00
33,690,116
100.00
26,094,942
100.00

Total non-current assets
23,782,112
76.17 24,765,860
77.61
25,690,184
79.36
26,841,888
82.02
28,275,751
83.93
21,092,208
80.83
Total current assets
7,439,205
23.83
7,145,445
22.39
6,682,906
20.64
5,886,085
17.98
5,414,365
16.07
5,002,734
19.17

2015
2014
2013
2012
2011
2010

Rs. 000
%
Rs. 000
%
Rs. 000
%
Rs. 000
%
Rs. 000
%
Rs. 000
%
Balance Sheet
Total equity
12,911,658
41.36
9,749,577
30.55
6,770,913
20.92
3,828,861
11.70
3,133,287
9.30
4,134,208
15.84
Share deposit money
-
-
-
-
-
-
-
-
-
-
1,000,000
3.83
Total surplus on revaluation
of fixed assets
4,751,082
15.22
4,891,515
15.33
5,051,836
15.61
5,298,809
16.19
5,548,120
16.47
-
Total non-current liabilities
5,414,116
17.34
10,137,641
31.77
11,981,790
37.01
12,995,935
39.71
14,653,399
43.49
11,611,919
44.50
Total current liabilities
8,144,461
26.09
7,132,572
22.35
8,568,551
26.47
10,604,368
32.40
10,355,310
30.74
9,348,815
35.83
Vertical Analysis - Six Years
Build the Un-Built
Annual Report 2015
81
Summary of Cash Flow

Statement - Six Years

2015
2014

2013
2012
2011
2010
Cash generated from operations before

working capital changes
7,673,904 6,987,258
6,578,095
4,495,054 1,489,456
564,033

Changes in working capital
Stores, spare parts and loose tools
(381,878)
(21,417)
(685,476)
(68,997)
(625,536)
523,784
Stock-in-trade
(123,798)
(252,033)
(35,504)
(364,311)
(34,366)
146,196
Trade debts
245,909
(86,152)
(190,327)
(55,898)
168,826
(95,465)
Loans and advances
(66,573) (745,805)
19,464
(36,107)
121,581
(188,388)
Trade and other payables
(309,606)
306,320
(688,335)
(425,593)
559,188
1,075,137
Due from subsidiary
-
-
-
383,934
(21)
Other receivables
(32,637)
68,614
26,530
(80,961)
(5,079)
(61,730)
Retirement benefits adjusted/(paid)
(17,963)
(21,737)
(11,242)
952
(11,129)
(10,021)
Workers Profit Participation Fund
(71,867)
(57,301)
-
-
-
Taxes paid
(326,386)
(238,857)
(14,127)
(158,071)
(41,772)
(237,570)
Others
(17,362)
296
43,467
3,088
789
24,182
Net Cash generated from operating activities
6,571,743
5,939,186
5,042,545
3,693,090
1,621,937
1,740,158
Fixed capital expenditure

Proceeds from sale of property, plant and equipment
Redemption of long term investments
Dividend received
Proceeds from disposal of short term investments
Acquisition of short term investments
Profit on bank deposits received
(Increase) / Decrease in long term deposits
(786,684)
70,267
1,625
-
-
-
15,848
(1,045)
(768,756)
12,696
-
-
-
-
11,844
733
(496,784)
5,282
1,412
448
8,455
-
-
(1,396)
(207,108)
2,287
(3,037)
384
2,450
(15,000)
-
(1,285)
(676,959)
108,203
-
11,717
-
-
-
(796)
(1,701,590)
8,067
(200)
9,431
9,965
(88)
Net Cash used in investing activities
(699,989)
(743,483)
(482,583)
(221,309)
(557,835)
(1,674,415)
625,536
(397,744) (1,674,205)
-
-
-
-
(2,854,714) (1,032,869)
(762,500)
(183,125)
(613,591)
-
-
(1,067,131)
(117,875)
(101,874)
-
-
(6,800)
(1,200)
(175,671)
-
-
(6,800)
(1,200)
1,000,000
300,000
(3,400)
(600)
(108,574)
(152,545)
323,981 (322,891)
(1,123,209) (1,646,567)
(20)
(163,780)
(524,391)
(20)
(260)
(150)
(134,768)
(770,120)
(2,053,219)
(362,903)
(179,253)
810
(55,556)
(835,282)
(2,296,662)
-
(1)
650
-
23,828
(692,183)
-
(1)
2,830
(84,882)
(321,484)
(1,578,858)
(28,881)
159
(5,447,431)
(5,176,152)
(5,298,050)
(3,296,725)
(849,197)
(92,410)
424,323
(255,311)
19,551
(274,862)
(738,088)
463,226
175,056
288,170
214,905
73,265
(26,667)
99,932
169,012
(255,311)
(274,862)
463,226
288,170
73,265
Long term loans obtained

Repayment of long term loans from
banking companies- Secured
Share deposit money / Proceeds from share received
Redeemable capital obtained
Repayment of redeemable capital - secured
Repayment of syndicated term finance - Secured
Payment of liabilities against assets subject
to finance lease
Acquisition / (payment) of Short term borrowings
Finance cost paid
Redemption of preference shares
Dividend paid
Others
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the years
Cash and cash equivalents at end of the year
82
MAPLE LEAF CEMENT
Comments on Six Years Analysis

Horizontal Analysis
Balance Sheet
The Companys equity increased owing to improved
profitability on account of record sales and lower
cost of production. This healthy trend of shareholder
equity continued since 2012.
Based on fast deleveraging, reduction in finance

cost is witnessed yet again. The Company debt
equity ratio has improved enormously over the last
five years and the same has been reflected in the
continuously decreasing finance cost each year.
Decrease in KIBOR rate has also been a key factor
in this regard.
Vertical Analysis
The Company witnessed the biggest ever reduction

in its long term liabilities owing to the policy of swiftly
deleveraging its balance sheet, on the foundations
of healthy cash flows generated by operations and
this trend was evidenced from year 2012.
Profit & Loss Account
The vertical climb of turnover of the Company since
2012 continued this year as well. Despite sales price
remaining relatively stable throughout the year,
sales in rupee terms were higher, which is a very
positive sign.
The Company has almost doubled its achievement
of increase in Gross Profit from last year as the
increase is 14.9% compared to 8% last year. This
increase in gross profit was quite substantial in 2012
and 2013 owing to cement industry benefiting from
increase in prices. The major contribution this year
has been the decline in coal prices, reduction in HFO
cost and other cost reduction measures adopted by
the Company.
Due to the above steep movement in gross profit,
profit from operations also exhibited a substantial
upward jump reaching a new high point in the
history of the Company.
Balance Sheet
The Company continues to pay off its debts at
exponential pace backed by increased cash flows.
On the other hand record profits year after year have
resulted in healthy equity. The equity component
has increased from 16% in 2010 to 41% in 2015 while
long term liabilities have decreased from 44% to 17%
which is a very promising sign.
Long term assets have decreased since 2012 owing
to depreciation as no major addition was made.
Current assets were 24% of the total assets of the
Company as opposed to 22% in year 2014. This
percentage has increased since 2011 owing to more
working capital requirement on account of higher
sales. The liquidity of the Company continued
improving based on exceptional results.
Profit & Loss Account
Due to reduced coal and power rates variable cost
declined and coupled with other cost reduction
measures, the gross profit percentage was higher
than last year i.e. 36% with an increase of 2%. The
gross profit margin increased from 22% in 2010 to
36% in 2015. Operating profits remained stable as
distribution costs were higher than last year. This is
Annual Report 2015
83
due to increase in distribution cost due to more C & F

shipments and increase in administration expenses.
However, compared to the year 2010, these costs
are substantially lower due to better mix of local
and export sales.
The Company has continued its trend of breaking
landmarks by beating last years net profit before
tax by 3% and reaching 22% for the current year. This
has been made possible by better sales and reduced
finance cost.
COMMENTS ON CASH FLOW STATEMENTS
The Company is moving in the right direction with
respect to operations which is indicated by the
increase in cash generated from operations. The said
cash flows are healthy for the current financial year
also on account of better sales and reduced cost.
The cash flows from operations have continued to
improve since 2012.
84
MAPLE LEAF CEMENT
The cash utilized in investing activities has remained

fairly similar to last year with a nominal decrease.
Apart from routine capitalization, no major
investment has been made since 2010. In 2009
and 2010, this figure was high on account of major
capital expenditure including waste heat recovery.
The Company continues to pay off its debt
obligations. Backed by better sales and healthy cash
flows, the amount utilized for repayment of debts
has exhibited an increasing trend since 2011. These
healthy cash flows have also supported the cash
and cash equivalents which have also gone up.
Analysis of Financial Ratios
For Six Years from Year 2010 to Year 2015

Profitability Ratios:
2015 2014 2013 2012 2011 2010

Gross Profit ratio
36.18%
34.39%
34.83%
25.97%
16.64%
21.56%
Net Profit to Sales
16.67%
14.92%
18.58%
3.21%
(13.53%)
(18.96%)
EBITDA Margin to Net Sales
37.91%
37.65%
39.34%
30.37%
16.18%
5.15%
Operating leverage ratio
1.13
0.42
6.05
20.65
52.54
11.34
Return on Equity
26.75%
29.03%
47.63%
12.96% (56.46%)
(50.33%)
Return on Capital employed
20.87%
16.47%
20.45%
3.27% (10.93%)
(15.98%)
Effective Tax Rate
23.25%
21.17%
(1.96%)
(11.70%)
11.90%
0.56%

Liquidity Ratios:

Current ratio
0.91
1.00
0.78
0.56
0.52
0.54
Quick / Acid test ratio
0.25
0.31
0.23
0.18
0.18
0.22
Cash to Current Liabilities
0.03
0.03
0.06
0.04
0.03
0.01
Cash flow from Operations to Sales
0.32
0.31
0.29
0.24
0.12
0.13

Investment / Market Ratios:

Earnings per share (EPS)
Basic
6.55
5.36
6.11
0.84
(3.72)
(7.08)
Diluted
6.55
5.36
6.11
0.83
(3.72)
(7.08)
Price Earnings ratio
12.00
5.61
3.59
5.49
(0.55)
(0.44)
Market value per share
Closing
78.56
30.05
21.93
4.63
2.06
3.11
High
84.3
30.25
22.54
4.83
2.25
3.30
Low
24.31
29.80
21.80
4.60
2.00
3.07
Break up value per share
With revaluation surplus
33.47
27.74
22.40
17.30
16.48
13.79
Without revaluation surplus
24.47
18.47
12.83
7.26
5.95
13.79
Cash Dividend per Share
2.00
-
-
-
-
Dividend Payout Ratio
31%
-
-
-
-
Dividend Yield
3%
-
-
-
-
Dividend Cover Ratio
3.27
-
-
-
-

Capital Structure Ratios:

Financial leverage ratio
0.57
1.18
2.24
4.45
5.73
3.22
Weighted average cost of debt
10.02%
10.46%
10.94%
13.09%
12.57%
12.67%
Net Borrowing/ EBITDA
0.96
1.67
2.25
3.74
9.56
30.48
Av. Operating Working Capital to Sales Ratio
13.82%
11.21%
0.70%
(3.51%)
(3.16%)
(10.55%)
Debt to Equity ratio
27:73
48:52
64:36
78:22
82:18
71:29
Interest Cover ratio
5.16
3.45
2.86
1.19
0.27
(0.25)

Activity / Turnover Ratios:

Inventory turnover ratio
11.22
11.91
12.28
15.87
20.88
18.50
No. of Days in Inventory
32.54
30.65
29.72
23.00
17.48
19.73
Debtor turnover ratio
29.40
23.76
26.03
27.22
19.94
19.02
No. of Days in Receivables
12.42
15.36
14.02
13.41
18.31
19.20
Total Assets turnover ratio
0.66
0.59
0.54
0.47
0.39
0.52
Fixed Assets turnover ratio
0.87
0.77
0.68
0.58
0.46
0.65
Creditor turnover ratio
11.95
10.75
8.07
6.27
5.92
6.80
No. of Days in Creditors
30.53
33.96
45.21
58.17
61.67
53.65
Operating Cycle
14.42
12.06
(1.47)
(21.76)
(25.89)
(14.73)
Annual Report 2015
85
Comments on Ratio Analysis

Profitability Ratios These ratios show the operational efficiency of the Company as the margins are better
than last year. EBITDA margin to sales is higher and profits are higher which reflects better performance
owing to higher sales volume and lower cost.
Liquidity Ratios Better operational results should have boosted these ratios but the impact was mitigated
due to an increase in current liabilities owing to current portion of debts. However, despite the increase in
current liabilities the ratios have remained stable and not declined which again indicate better performance
of the Company.
Investment / Market Ratios Increased profitability means increased EPS and this is evident from the figure
which has gone up to 6.55 from 5.36 last year. The market value of the share also closed on a big high
because of the performance of the Company, more than double than what it was on last financial year end.
Breakup value of the share has also increased based on the results.
Capital Structure Ratios These ratios have continued to get better since 2011 based on improved results
and healthy cash flows, which have helped the Company pay its debts at accelerated rates and the trend is
evident this year.
Activity / Turnover Ratios The ratios yet again show a positive sign with recovery from customers and
payment to creditors reduced by 3 days each. This shows better cash flow generating capacity of the
Company to pay off its liabilities on time and reduce liquidity risk.
86
MAPLE LEAF CEMENT
DuPont Analysis
Years
Return on Equity

Profit Margin = Total Asset Turnover= Return on Assets

(Pre Tax Profit /
(Sales /
Sales)
Avg Assets)

E = C x D
A

2015
27.87%
0.22
2014
27.13%
0.19
2013
30.19%
0.18
2012
4.99%
0.03
2011
(22.89%)
(0.12)
2010
(43.36%)
(0.19)
Equity Multiplier=
(Avg Assets /
Avg Equity)
C = A x B
0.66
0.59
0.53
0.47
0.44
0.53
14.26%
11.17%
9.72%
1.34%
(5.29%)
(9.93%)
1.95
2.43
3.11
3.73
4.33
4.37
Following are the DuPont analysis highlights:

1. The operational efficiency of the Company has followed the trend of the last few years and increased in
the current year owing to better sales, reduced variable cost and reduction in finance cost on account of
debt repayment.
2. Assets turnover has increased in the current year by a higher percentage than last year which indicates
better and more effective utilization of the resources of the Company.
3. Return on assets which is the combined effect of the above two factors also increased and is an indication
of the improved operations over the last few years.
4. Better operations have lead to higher profits which have inflated the equity. This has led to a better
equity multiplier which continues to improve each year owing to good profits.
Conclusion:
The DuPont analysis reaffirms the point that the Company is heading in the right direction of higher margins
and increased sales with policies to add value to all the stakeholders.
Annual Report 2015
87
Key Operating and Financial Data
For Six Years from Year 2009-10 to Year 2014-15

2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
Quantitative Data (M. Tons)

Cement:
Production
3,005,456
2,753,142
2,715,643
2,648,643
2,844,229
3,343,706
Sales
2,960,501
2,740,901
2,687,911
2,649,092
2,862,665
3,364,025

Sales (Rs. 000)
Gross Sales
25,393,341
23,263,584
20,671,865
18,677,240
16,708,120
16,715,223
Less:
Excise Duty
935,201
838,618
820,596
983,313
1,618,710
1,618,793
Sales Tax
3,590,939
3,324,741
2,361,879
2,103,135
1,883,559
1,349,218
Commission
147,147
131,678
132,014
129,436
132,633
116,701
Net Sales
20,720,054
18,968,547
17,357,376
15,461,356
13,073,218
13,630,511

Profitability (Rs. 000)
Gross Profit/(Loss)
7,495,623
6,522,985
6,045,035
4,014,773
2,175,159
2,938,628

Profit/(Loss) Before Tax
4,500,911
3,590,401
3,162,615
444,066
(1,580,911) (2,569,508)
Provision for Income Tax
(1,046,616)
(760,227)
62,080
52,128
(188,125)
(14,447)
Profit/(Loss) After Tax
3,454,295
2,830,174
3,224,695
496,194
(1,769,036) (2,583,955)

Financial Position (Rs. 000)
Tangible Fixed Assets-Net
23,720,541
24,705,782
25,630,205
26,774,317
28,203,393 21,035,368
Other Non-Current Assets
61,571
60,078
59,979
67,571
72,358
56,840

Current Assets
Current Liabilities
Net Working Capital
Capital Employed
Less: Non Current Liabilities
23,782,112
24,765,860
25,690,184
26,841,888
28,275,751
21,092,208
7,439,205
(8,144,461)
7,145,445
(7,132,572)
6,682,906
(8,568,551)
5,886,085
(10,604,368)
(705,256)
12,873
(1,885,645)
(4,718,283)
(4,940,945)
(4,346,081)
23,076,856
(5,414,116)
24,778,733
(10,137,641)
23,804,539
(11,981,790)
22,123,605
(12,995,935)
23,334,806
(14,653,399)
16,746,127
(11,611,919)
5,414,365
5,002,734
(10,355,310) (9,348,815)
Share holders Equity

17,662,740
14,641,092
11,822,749
9,127,670
8,681,407
5,134,208

Represented By:
Share Capital
5,277,340
5,277,340
5,277,340
5,805,603
5,803,458
4,264,108
Reserves & Un-app. Profit
7,634,318
4,472,237
1,493,573
(1,976,742)
(2,670,171)
(129,900)
Share Deposit Money
-
-
-
-
-
1,000,000
Surplus on Revaluation of PPE
4,751,082
4,891,515
5,051,836
5,298,809
5,548,120

88
MAPLE LEAF CEMENT
17,662,740
14,641,092
11,822,749
9,127,670
8,681,407
5,134,208
Statement of Cash Flows

Direct Method

2015
2014

Cash flows from operating activities

Cash receipts from customers
20,965,963
18,882,395

Cash paid to suppliers and employees
13,975,931
12,624,482

Cash generated from operations
6,990,031
6,257,913

(Increase)/decrease in long term loans to employees - secured
(2,073)
(832)
Retirement benefits (paid)/adjusted
(17,963)
(21,737)
Workers profit participation fund paid
(71,867)
(57,301)
Taxes paid
(326,386)
(238,857)

Net cash generated from operating activities
6,571,743
5,939,186

Cash flow from investing activities
Expenditures for property, plant and equipment
(786,684)
(768,756)
Proceeds from sale of property, plant and equipment
70,267
12,696
Increase in long term deposits and prepayments
(1,045)
733
Redemption of long term investment
1,625
15,848
11,844
Net cash used in investing activities
(699,989)
(743,483)

Cash flow from financing activities
Repayment of long term loans from banking companies - secured
(397,744)
(1,674,205)
Repayment of redeemable capital - secured
(2,854,714)
(1,032,869)
Repayment of syndicated term finances - secured
(762,500)
(183,125)
Increase in long term deposits
(260)
(150)
Payment of liabilities against assets subject to finance lease
(108,574)
(152,545)
Receipt/(repayment) of short term borrowings
323,981
(322,891)
Finance cost paid
(1,123,209)
(1,646,567)
(20)
(163,780)
Preference dividend paid
(524,391)
(20)
(5,447,431)
(5,176,152)

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year
424,323
19,551
(255,311)
(274,862)
169,012
(255,311)
Annual Report 2015
89
Results Reported in Interim Financial Statements and Final Accounts

Interim Results
Annual Results

3 Months Period
6 Months Period
9 Months Period
Year Ended
Ended 30-09-2014 Ended 31-12-2014 Ended 31-03-2015
30-06-2015

Rupees 000
%
Rupees 000
% Rupees 000
% Rupees 000
%
Net Turnover
Gross Profit
Operating Profit
Net Profit Before Tax
Net Profit After Tax
4,453,306
1,578,711 35.45%
1,159,955 26.05%
789,277
17.72%
545,319
12.25%
9,674,772
3,487,526 36.05%
2,573,960 26.60%
1,933,278 19.98%
1,433,555 14.82%
15,063,767
5,412,396
35.93%
4,028,789
26.74%
3,149,007
20.90%
2,344,822
15.57%
20,720,054
7,495,623
5,583,550
4,500,911
3,454,295
Debt Equity Ratio

Current Ratio
8,107,941
44:56
18,458,621
6,773,228
1.02
6,429,498 36:64
17,774,113
7,326,565
0.88
5,679,511
33:67
17,434,074
7,148,341
0.85
4,778,817
17,690,475
7,439,205
6,626,075
8,310,536
8,384,823
8,144,461
27:73
0.91
Analysis of Variation in Results Reported in Interim

Financial Statements with the Final Accounts
%age in annual and due to reduction in coal rates

and finance cost in annual.
3 Months Ended September 30, 2014

Gross Profit Ratio for the 1st Quarter was 35.45%
as compared to annual GP of 36.18%, mainly due
to lower sales on account of monsoon season and
increased store consumption on account of annual
maintenance of the plant in 1st Quarter.
Net Profit After Tax was 14.82% as compared to

16.67% in annual. Debt Equity Ratio was 36:64 in first
half year as compared to 27:73 in annual, mainly due
to more repayment of debts in annual and more
profits in last quarter.
Operating Profit was 26.05% as compared to 26.95%

in annual mainly due to low GP in 1st quarter. Net
Profit Before Tax was 17.72% as compared to annual
21.72%, mainly due to high GP %age in annual and due
to reduction in finance cost in annual on account of
decrease in exchange loss and reduction in mark up
due to debt repayments.
16.67% in annual due to sale quantitative growth
over the year and reduction in finance cost.
Debt Equity Ratio was 44:56 in 1st quarter as
compared to 27:73 in annual, mainly due to early
repayments of debt over the year and low profit in
the 1st quarter as compared to annual.
Current ratio was 1.02 as compared to annual of
0.91, due to reduced of current maturities of long
term debts in 1st Quarter.
6 Months Ended December 31, 2014
Gross Profit Ratio was 36.05% as compared to
annual GP of 36.18%, mainly due to improved sales
performance in last quarter on account of seasonal
factors. However, gross profit ratio increased as
compared to 1st quarter mainly due to reduction in
coal prices.
in annual. Net Profit Before Tax was 19.98% as
compared to annual 21.72%, mainly due to high GP
90
36.18%
26.95%
21.72%
16.67%
MAPLE LEAF CEMENT
Current ratio was 0.88 as compared to annual of 0.91

mainly due to decrease in short term borrowings on
account of effective utilisation of running finance
lines at year end.
9 Months Ended March 31, 2015
Gross Profit Ratio was 35.93% as compared to annual
GP of 36.18%, mainly due to impact of GIDC arrears
in 3rd quarter. However, reduction in coal rates in
the international market gave a favorable impact on
gross profit ratio at year end.
in annual. Net Profit Before Tax was 20.90% as
compared to annual 21.72% mainly due to improved
gross profit margin in last quarter on account of
better sale performance, low fuel cost and reduction
in finance cost on account of debt repayments,
reduction in discount rate and less exchange loss.
16.67% in annual. Profit after tax improved in annual
mainly due to increase in profit from operations and
a decrease in effective tax rate
Debt Equity Ratio was 33:67 as compared to 27:73 in
annual, mainly due to more repayment of debts in
annual and increase in profits.
Current ratio was 0.85 as compared to annual of
0.91 due to increase in current maturity in annual.
Statement of Value Added and

How Distributed

2015
2014

Rs. (000)
% age
Rs. (000)
% age

Value Added

Sales net of commission
25,246,194
99.82%
23,131,906 99.65%
Other Operating Income
46,173
0.18%
80,585
0.35%

25,292,367 100.00%
23,212,491 100.00%

Distribution of Wealth

Cost of Sales (excluding employees remuneration) 12,662,491
50.06%
11,959,283
51.52%
Marketing, Selling & Administration expenses
1,745,245
6.90%
1,373,000
5.91%
To Employees as remuneration
772,195
3.05%
659,042
2.84%
To Government as taxes
5,572,756
22.03%
4,923,586
21.21%
To Providers of Finance as financial charges
1,082,639
4.28%
1,464,772
6.31%
To Providers of Capital as Dividend
527,734
2.09%
-
0.00%
To Society / Donations
2,746
0.01%
2,634
0.01%
Retained within the business
2,926,561
11.57%
2,830,174
12.19%

25,292,367 100.00%
23,212,491 100.00%
Statement of Charity

(Rupees In thousand)

2015 2014
Abdul Razzaq Fazaia College Mianwali
1,403
Miscellaneous donations in the form of cement
910
1,711
Lahore University of Management Sciences (LUMS)
100
Internally Displaced Persons (IDP), Swat
-
600
National Tennis Academy
333
323

2,746
2,634
Annual Report 2015
91
Market Ratios
Profitability Ratios
Liquidity Ratios
Turnover Ratios
Capital Structure Ratios
Return on Equity and Capital
CASH GENERATED / UTILIZED
92
MAPLE LEAF CEMENT
Horizontal Analysis - Balance Sheet
Equity and
Liabilities-2015
Assets-2015
P & L- 2015
Horizontal Analysis - Profit & Loss Account
Equity and
Liabilities-2014
Assets-2014
P & L- 2014
Annual Report 2015
93
Pattern of Shareholding
1. CUIN (Incorporation Number)
0001107

2. Name of the Company
MAPLE LEAF CEMENT FACTORY LIMITED

3. Pattern of holding of the shares

held by the shareholders as at
30-06-2015
94
4. No. of
Shareholders
Size of Holding
From To
1
101
501
1001
5001
10001
15001
20001
25001
30001
35001
40001
45001
50001
55001
60001
65001
70001
75001
80001
90001
95001
100001
105001
110001
115001
120001
125001
130001
135001
145001
150001
155001
160001
165001
170001
185001
195001
MAPLE LEAF CEMENT
1,733
2,539
1,613
2,349
499
162
102
83
46
31
16
15
33
9
8
10
2
6
4
2
3
20
3
2
3
3
4
2
1
4
5
2
2
1
1
1
1
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100
500
1000
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
85000
95000
100000
105000
110000
115000
120000
125000
130000
135000
140000
150000
155000
160000
165000
170000
175000
190000
200000
Total
shares held
68,157
827,843
1,369,045
5,869,891
3,921,428
2,054,023
1,905,778
1,954,260
1,312,523
1,022,168
616,263
645,135
1,632,286
475,677
469,620
628,655
137,000
439,402
312,676
167,762
275,300
1,987,751
306,800
213,138
336,500
357,942
494,000
252,239
135,000
554,830
748,000
305,728
318,500
163,000
170,000
175,000
186,000
598,000
4. No. of
Shareholders
Size of Holding
From To
Total
shares held
210001
215001
225001
230001
245001
250001
280001
285001
295001
300001
315001
340001
345001
355001
360001
370001
375001
380001
385001
395001
400001
440001
445001
470001
475001
485001
490001
495001
510001
525001
540001
545001
560001
565001
580001
590001
595001
645001
655001
665001
670001
690001
735001
750001
815001
865001
885001
636,191
219,500
229,500
464,500
1,741,780
252,280
284,000
288,000
900,000
301,500
317,000
685,000
697,200
355,500
364,500
371,795
753,500
382,000
776,500
796,500
404,000
441,500
450,000
950,000
479,500
490,000
491,500
2,000,000
513,000
526,500
541,500
550,000
562,000
565,500
585,000
591,960
1,200,000
1,299,500
656,800
670,000
1,343,000
695,000
739,000
754,000
820,000
867,500
888,500
3
1
1
2
7
1
1
1
3
1
1
2
2
1
1
1
2
1
2
2
1
1
1
2
1
1
1
4
1
1
1
1
1
1
1
1
2
2
1
1
2
1
1
1
1
1
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
215000
220000
230000
235000
250000
255000
285000
290000
300000
305000
320000
345000
350000
360000
365000
375000
380000
385000
390000
400000
405000
445000
450000
475000
480000
490000
495000
500000
515000
530000
545000
550000
565000
570000
585000
595000
600000
650000
660000
670000
675000
695000
740000
755000
820000
870000
890000
Annual Report 2015
95
4. No. of
Shareholders

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Size of Holding
From To
935001 -
985001 -
995001 -
1020001 -
1075001 -
1195001 -
1225001 -
1275001 -
1310001 -
1315001 -
1340001 -
1440001 -
1495001 -
1515001 -
1585001 -
1605001 -
1850001 -
2080001 -
2225001 -
2275001 -
2280001 -
2480001 -
2745001 -
2780001 -
2800001 -
3295001 -
3505001 -
3535001 -
4360001 -
4875001 -
5535001 -
6565001 -
7395001 -
7830001 -
7910001 -
7995001 -
8435001 -
8760001 -
9880001 -
11715001 -
14180001 -
14305001 -
291410001 -
940000
990000
1000000
1025000
1080000
1200000
1230000
1280000
1315000
1320000
1345000
1445000
1500000
1520000
1590000
1610000
1855000
2085000
2230000
2280000
2285000
2485000
2750000
2785000
2805000
3300000
3510000
3540000
4365000
4880000
5540000
6570000
7400000
7835000
7915000
8000000
8440000
8765000
9885000
11720000
14185000
14310000
291415000
937,980
989,000
1,000,000
1,025,000
1,076,500
1,200,000
1,228,495
1,277,000
1,311,500
1,318,500
1,341,500
1,442,347
1,496,400
1,515,700
1,587,617
1,608,500
1,852,500
2,083,000
2,226,000
2,280,000
2,285,000
2,483,800
2,746,000
2,783,500
2,800,500
3,300,000
3,510,000
3,536,089
4,363,200
4,879,000
5,539,200
6,565,200
7,398,200
7,835,000
7,910,234
8,000,000
8,440,000
8,760,500
9,881,500
11,720,000
14,183,091
14,306,622
291,410,425
9,436
527,733,926
Note: The Slabs not applicable above have not been shown.
96
MAPLE LEAF CEMENT
Total
shares held
5.
Categories of
Shares
Percentage

Shareholders
Held
of Capital

5.1
Directors, CEO and their spouses & minor children

Mr. Tariq Sayeed Saigol - Chairman

Mr. Sayeed Tariq Saigol - Chief Executive
Mr. Zamiruddin Azar
Mr. Karim Hatim
Mrs. Shehla Tariq Saigol - Spouse of Mr. Tariq Sayeed Saigol
15,582
5,156
5,156
5,432
2,500
10,573
2,500
1,852,500
0.0030
0.0010
0.0010
0.0010
0.0005
0.0020
0.0005
0.3510

1,899,399
0.3600

5.2
Associated Companies, undertakings

and related parties

Kohinoor Textile Mills Ltd.
291,410,425
55.2192

Zimpex (Pvt) Ltd.
1,706
0.0003

291,412,131
55.2195

5.3 NIT and ICP

National Bank of Pakistan, Trustee Deptt.
13,097
0.0025

IDBL (ICP Unit)
13,840
0.0026

26,937
0.0051

5.4
Banks, Development Financial Institutions,

Non-banking Financial Institutions 4,720,809
0.8945

5.5
Insurance Companies 11,926,500
2.2599

5.6
Modarabas and Leasing Companies
24,960
0.0047

5.6.1
Mutual Funds

CDC - TRUSTEE ABL ISLAMIC PENSION FUND - EQUITY SUB FUND
42,500

CDC - TRUSTEE ABL STOCK FUND
14,000

CDC - TRUSTEE AKD INDEX TRACKER FUND
51,000

CDC - TRUSTEE AL MEEZAN MUTUAL FUND
475,000

CDC - TRUSTEE ALFALAH GHP ALPHA FUND
541,500

CDC - TRUSTEE ALFALAH GHP INCOME FUND - MT
7,000

CDC - TRUSTEE ALFALAH GHP ISLAMIC STOCK FUND
513,000

CDC - TRUSTEE ALFALAH GHP STOCK FUND
888,500

CDC - TRUSTEE ALFALAH GHP VALUE FUND
364,500

CDC - TRUSTEE FAYSAL ASSET ALLOCATION FUND
100,000

CDC - TRUSTEE FAYSAL ASSET ALLOCATION FUND - MT
51,750

CDC - TRUSTEE FAYSAL INCOME & GROWTH FUND - MT
90,800
Annual Report 2015
97
Categories of
Shareholders
5.6.1

Mutual Funds
CDC - TRUSTEE FAYSAL SAVINGS GROWTH FUND - MT
CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND
CDC - TRUSTEE FIRST HABIB INCOME FUND - MT
CDC - TRUSTEE HBL - STOCK FUND
CDC - TRUSTEE HBL MULTI - ASSET FUND
CDC - TRUSTEE KSE MEEZAN INDEX FUND
CDC - TRUSTEE MCB PAKISTAN ASSET ALLOCATION FUND
CDC - TRUSTEE MCB PAKISTAN STOCK MARKET FUND
CDC - TRUSTEE MEEZAN BALANCED FUND
CDC - TRUSTEE MEEZAN ISLAMIC FUND
CDC - TRUSTEE MEEZAN TAHAFFUZ PENSION FUND - EQUITY SUB FUND
CDC - TRUSTEE NAFA ISLAMIC ASSET ALLOCATION FUND
CDC - TRUSTEE NAFA ISLAMIC PRINCIPAL PROTECTED FUND - I
CDC - TRUSTEE NAFA ISLAMIC PRINCIPAL PROTECTED FUND - II
CDC - TRUSTEE NAFA ISLAMIC STOCK FUND
CDC - TRUSTEE NAFA MULTI ASSET FUND
CDC - TRUSTEE NAFA STOCK FUND
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST
CDC - TRUSTEE PAKISTAN CAPITAL MARKET FUND
CDC - TRUSTEE PAKISTAN SARMAYA MEHFOOZ FUND
CDC - TRUSTEE PAKISTAN STRATEGIC ALLOCATION FUND
CDC - TRUSTEE PICIC ISLAMIC STOCK FUND
CDC - TRUSTEE PICIC STOCK FUND
CDC - TRUSTEE PIML ISLAMIC EQUITY FUND
CDC - TRUSTEE PIML STRATEGIC MULTI ASSET FUND
CDC - TRUSTEE PIML VALUE EQUITY FUND
CDC - TRUSTEE AL-AMEEN ISLAMIC RET. SAV. FUND-EQUITY SUB FUND
CDC - TRUSTEE FIRST HABIB ISLAMIC BALANCED FUND
CDC - TRUSTEE HBL ISLAMIC STOCK FUND
CDC - TRUSTEE NAFA ASSET ALLOCATION FUND
CDC - TRUSTEE PAK. INT. ELEMENT ISLAMIC ASSET ALLOCATION FUND
GROWTH MUTUAL FUND LIMITED
MC FSL - TRUSTEE JS KSE-30 INDEX FUND
MCBFSL - TRUSTEE ABL ISLAMIC STOCK FUND
MCBFSL - TRUSTEE PAK OMAN ADVANTAGE ASSET ALLOCATION FUND
MCBFSL - TRUSTEE PAK OMAN ISLAMIC ASSET ALLOCATION FUND
98
MAPLE LEAF CEMENT
Shares
Held
Percentage
of Capital
378,000
23,500
211,000
2,783,500
355,500
347,200
112,500
4,879,000
350,000
8,440,000
175,000
671,000
475,000
344,000
375,500
386,500
989,000
249,746
441,500
100,000
100
58,000
32,000
120,000
163,000
53,000
341,000
20,000
526,500
565,500
404,000
110
9,110
562,000
30,000
40,000
28,151,316 5.3344
Categories of
Shareholders
Shares
Held
Percentage
of Capital
5.7 Shareholders holding Five Percent

or more voting interest in the Company

Refer to 5.2 above

5.8 General Public

Individuals
62,728,806
11.8864

Foreign Investors
116,207,834
22.0202

5.9 Executive(s)
1
0.0000

5.10 Public Sector Companies

and Corporations
1,230,505
0.2332

5.11 Joint Stock Companies
7,937,709
1.5041

5.12 Others

AKHUWAT
30,500

CDC - TRUSTEE NAFA ISLAMIC PENSION FUND EQUITY ACCOUNT
71,000

CDC - TRUSTEE NAFA PENSION FUND EQUITY SUB-FUND ACCOUNT
96,500

CDC - TRUSTEE PAKISTAN PENSION FUND - EQUITY SUB FUND
284,000

CDC - TRUSTEE PAKISTAN ISLAMIC PENSION FUND - EQUITY SUB FUND
186,000

IFI ASSOCIATES
50,000

LAHORE STOCK EXCHANGE LIMITED
5,700

MANAGING COMMITTEE GHAZALI EDUCATION TRUST
440

Trustee City Schools Provident Fund
25,000

TRUSTEE LEVER BROTHERS EMPLOYEES
5,000

TRUSTEE NATIONAL BANK OF PAKISTAN EMP BENEVOLENT FUND TRUST
7,488

TRUSTEE NATIONAL BANK OF PAKISTAN EMPLOYEES PENSION FUND
213,391

TRUSTEE THALL LIMITED- EMPLOYEES RETIREMENT BENEFIT FUND
6,000

TRUSTEE-ALLIED ENGINEERING & SERVICES LTD EMPL PROVIDENT FUND
11,500

TRUSTEE-MILLAT TRACTORS LTD. EMPLOYEES PENSION FUND
96,000

TRUSTEES HOMMIE & JAMSHED NUSSERWANJEE C.T
50,000

TRUSTEES OF FFC EMPLOYEES PROVIDENT FUND
250,000

TRUSTEES OF PHILIP MORRIS (PAKISTAN) LIMITED EMPL G.F. TRUST
10,500

Trustees Wah Nobel P. Ltd. Mang. Staff PF
20,000

TRUSTEE-THE KOT ADDU POWER CO. LTD. EMPLOYEES PENSION FUND
48,000

1,467,019
0.2780

Grand Total:
527,733,926
100.0000
Annual Report 2015
99
Statement of Compliance with the

Code of Corporate Governance
Name of Company:

Year Ended:
Maple Leaf Cement

Factory Limited
June 30, 2015
This statement is being presented to comply with

the Code of Corporate Governance (CCG) contained
in the Regulation No. 35 of the Listing Regulations
of Karachi, Lahore and Islamabad Stock Exchanges
for the purpose of establishing a framework of good
governance, whereby a listed company is managed
in compliance with the best practices of corporate
governance.
4. No casual vacancy occurred on the Board of

Directors during the year.
5.
The Company has prepared a Code of

Conduct and has ensured that appropriate
steps have been taken to disseminate it
throughout the Company along with its
supporting policies and procedures.
The Company has applied the principles contained

in the CCG in the following manner:-
6.
The Board has developed a vision/mission

statement, overall corporate strategy and
significant policies of the Company. A complete
record of particulars of significant policies
along with the dates on which they were
approved or amended has been maintained.
1. The Company encourages representation

of independent non-executive directors and
directors representing minority interests on
its Board of Directors. At present, the Board
includes:Category Names
Independent Director
Mr. Karim Hatim
Executive Directors


Non-Executive Directors


Mr. Zamiruddin Azar
The Independent Director meets the criteria of

independence under clause i(b) of the CCG.
100
company, a DFI or an NBFI or, being a member

of a stock exchange, has been declared as a
defaulter by that stock exchange.
2.
The Directors have confirmed that none

of them is serving as a Director on more
than seven listed companies, including this
Company.
3.
All the resident Directors of the Company are

registered as taxpayers and none of them has
defaulted in payment of any loan to a banking
MAPLE LEAF CEMENT
7. All the powers of the Board have been

duly exercised and decisions on material
transactions, including appointment and
determination of remuneration and terms and
conditions of employment of the CEO, other
executive and non-executive directors, have
been taken by the Board.
8. The meetings of the Board were presided
over by the Chairman and the Board met at
least once in every quarter. Written notices of
the Board meetings, along with agenda and
working papers, were circulated at least seven
days before the meetings. The minutes of the
meetings were appropriately recorded and
circulated.
9. The Board had arranged Orientation Courses
for its Directors during the preceding years
from recognized institutions of Pakistan
that meet the criteria specified by the
SECP whereas some Directors having the
requisite experience on the Board(s) of Listed
Companies are exempt from the Directors
Training Program. Further, the Directors have
also provided declarations that they are aware
Living with a purpose
Annual Report 2015
101
of their duties, powers and responsibilities

under the Companies Ordinance, 1984 and the
Listing Regulations of the Stock Exchanges.
Furthermore, the Board has put in place a
mechanism for an annual evaluation of the
Boards own performance.
10. There were no new appointments of the CFO,
Company Secretary and Head of Internal
Audit during the year, however, all such
appointments including their remuneration
and terms and conditions of employment are
duly approved by the Board.
11. The Directors Report for this year has been
prepared in compliance with the requirements
of the CCG and fully describes the salient
matters required to be disclosed.
12. The financial statements of the Company were
duly endorsed by CEO and CFO before approval
of the Board.
13. The Directors, CEO and executives do not hold
any interest in the shares of the Company
other than that disclosed in the pattern of
shareholding.
14. The Company has complied with all the
corporate and financial reporting requirements
of the CCG.
15. The Board has formed an Audit Committee
comprising of four non-executive directors
including the chairman of the committee.
16. The meetings of the Audit Committee were
held at least once every quarter prior to the
approval of interim and final results of the
Company and as required by the CCG. The
terms of reference of the committee have
been formed and advised to the committee for
compliance.
17. The Board has formed a HR & Remuneration
Committee comprising of three non-executive
directors including the chairman of the
committee.
102
MAPLE LEAF CEMENT
18. The Board has set up an effective internal audit

function.
19. The statutory auditors of the Company
have confirmed that they have been given a
satisfactory rating under the quality control
review program of the ICAP, that they or
any of the partners of the firm, their spouses
and minor children do not hold shares of the
Company and that the firm and all its partners
are in compliance with International Federation
of Accountants (IFAC) guidelines on the code
of ethics as adopted by the ICAP.
20. The statutory auditors or the persons
associated with them have not been appointed
to provide other services except in accordance
with the listing regulations and the auditors
have confirmed that they have observed IFAC
guidelines in this regard.
21. The closed period, prior to the announcement
of interim/final results, and business decisions,
which may materially affect the market price of
the Companys securities was determined and
intimated to Directors, executives and stock
exchange(s).
22. Material/price sensitive information has been
disseminated among all market participants at
once through stock exchanges.
23. We confirm that all other material principles
enshrined in the CCG have been complied with.
For and on behalf of the Board

(Sayeed Tariq Saigol)
Lahore: 09 September 2015
Chief Executive
This disclosure is being added as per requirement of Securities and Exchange

Commission of Pakistan vide SRO 924(1) / 2015, dated 09 September 2015.
Annual Report 2015
103

2nd Floor,
Servis House
2-Main Gulberg Jail Road,
Lahore Pakistan
Telephone + 92 (42) 3579 0901-6

Fax
+ 92 (42) 3579 0907
Internet
www.kpmg.com.pk
Review Report to the Members on

Statement of Compliance with the Code of
Corporate Governance
We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of
Corporate Governance (the Code) prepared by the Board of Directors of Maple Leaf Cement Factory Limited
(the Company) for the year ended 30 June 2015 to comply with the requirements of Listing Regulation No.
35 of Karachi, Lahore and Islamabad Stock Exchanges where the Company is listed.
The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our
responsibility is to review, to the extent where such compliance can be objectively verified, whether the
Statement of Compliance reflects the status of the Companys compliance with the provisions of the Code
and report if it does not and to highlight any non-compliance with the requirements of the Code. A review
is limited primarily to inquiries of the Company personnel and review of various documents prepared by the
Company to comply with the Code.
As a part of our audit of financial statements we are required to obtain an understanding of the accounting
and internal control systems sufficient to plan the audit and develop an effective audit approach. We are
not required to consider whether the Board of Directors statement on internal control covers all risks and
controls or to form an opinion on the effectiveness of such internal controls, the Companys corporate
governance procedures and risks.
The Code requires the Company to place before the Audit Committee, and upon recommendation of the
Audit Committee, place before the Board of Directors for their review and approval of its related party
transactions distinguishing between transactions carried out on terms equivalent to those that prevail in
arms length transactions and transactions which are not executed at arms length price and recording
proper justification for using such alternate pricing mechanism. We are only required and have ensured
compliance of the requirement to the extent of the approval of the related party transactions by the Board
of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to
determine whether the related party transactions were under taken at arms length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of
Compliance does not appropriately reflect the Companys compliance, in all material respects, with the best
practices contained in the Code as applicable to the Company for the year ended 30 June 2015.

Lahore
KPMG Taseer Hadi & Co
Date: 09 September 2015

(M. Rehan Chughtai)
104
MAPLE LEAF CEMENT
E
x
p
l
o
r
i
n
g
possibilities
Annual Report 2015
105
Sky is the limit
106
MAPLE LEAF CEMENT
Financial
Statements
Annual Report 2015
107
Always moving
forward
108
MAPLE LEAF CEMENT

2nd Floor,
Servis House
2-Main Gulberg Jail Road,
Lahore Pakistan
Telephone + 92 (42) 3579 0901-6

Fax
+ 92 (42) 3579 0907
Internet
www.kpmg.com.pk
AUDITORS REPORT TO THE MEMBERS

We have audited the annexed balance sheet of Maple Leaf Cement Factory Limited (the Company) as
at 30 June 2015 and the related profit and loss account, statement of comprehensive income, cash flow
statement and statement of changes in equity together with the notes forming part thereof, for the year
then ended and we state that we have obtained all the information and explanations which, to the best of
our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the Companys management to establish and maintain a system of internal control,
and prepare and present the above said statements in conformity with the approved accounting standards
and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these
statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards
require that we plan and perform the audit to obtain reasonable assurance about whether the above said
statements are free of any material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the above said statements. An audit also includes assessing
the accounting policies and significant estimates made by management, as well as, evaluating the overall
presentation of the above said statements. We believe that our audit provides a reasonable basis for our
opinion and, after due verification, we report that:
a)
in our opinion, proper books of account have been kept by the Company as required by the Companies
Ordinance, 1984;
b)
in our opinion:
i)
ii) the expenditure incurred during the year was for the purpose of the Companys business; and
(c)
in our opinion and to the best of our information and according to the explanations given to us, the
balance sheet, profit and loss account, statement of comprehensive income, cash flow statement and
statement of changes in equity together with the notes forming part thereof conform with approved
accounting standards as applicable in Pakistan and give the information required by the Companies
Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of
the Companys affairs as at 30 June 2015 and of the profit, its cash flows and changes in equity for the
year then ended; and
(d)
in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980)
was deducted by the Company, and deposited in the Central Zakat Fund established under section 7
of that Ordinance.
the balance sheet and profit and loss account together with the notes thereon have been drawn
up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of
account and are further in accordance with accounting policies consistently applied;
iii) the business conducted, investments made and the expenditure incurred during the year were in
accordance with the objects of the Company;
Lahore

Date: 09 September 2015

(M. Rehan Chughtai)
Annual Report 2015
109
BALANCE SHEET
AS AT JUNE 30, 2015

Note
EQUITY AND LIABILITIES
2015
2014
SHARE CAPITAL AND RESERVES

Authorized share capital
5
7,000,000
7,000,000

Issued, subscribed and paid-up share capital
5
5,277,340
5,277,340
Capital reserves
6
2,058,137
2,058,137
Accumulated profits
5,576,181
2,414,100

12,911,658
9,749,577

Surplus on revaluation of fixed assets - net of tax
7
4,751,082
4,891,515

Non - current liabilities

Long term loans from banking companies - secured
8
38,114
478,615
Redeemable capital - secured
9
1,933,011
5,583,000
Syndicated term finance - secured
10
-
1,046,000
Liabilities against assets subject to finance lease - secured
11
628,230
735,090
Long term deposits
12
6,619
6,879
Deferred taxation
13
2,698,454
2,208,403
Retirement benefits
14
109,688
79,654

5,414,116
10,137,641

Current liabilities

Current portion of:
- Long term loans from banking companies - secured
8
117,143
178,388
- Redeemable capital - secured
9
1,500,000
600,000
- Syndicated term finance - secured
10
433,500
150,000
- Liabilities against assets subject to finance lease - secured
11
128,819
105,333
15
3,163,873
3,305,698
Accrued profit / interest / mark-up
16
108,132
174,625
Provision for taxation - net
32
137,252
Short term borrowings
17
2,555,742
2,618,528

8,144,461
Contingencies and commitments
18

31,221,317

The annexed notes from 1 to 55 form an integral part of these financial statements.

CHIEF EXECUTIVE OFFICER
110
MAPLE LEAF CEMENT
7,132,572
31,911,305
DIRECTOR

2015
2014

Note
ASSETS

NON - CURRENT ASSETS

Property, plant and equipment
19
23,720,541
24,705,782
Long term investment
20
-
1,625
Long term loans to employees - secured
21
6,513
4,440
Long term deposits
22
55,058
54,013

23,782,112
24,765,860

Current assets

23
4,195,714
3,772,803
Stock-in-trade
24
1,206,573
1,151,460
Trade debts
25
570,571
839,037
Loans and advances
26
974,082
907,509
Short term investment
27
10,530
6,780
Short term deposits and prepayments
28
88,969
73,680
Accrued profit
29
963
2,352
Refunds due from Government
30
16,797
16,797
Other receivables
31
130,606
97,969
Advance tax - net of provision
32
-
70,214
Cash and bank balances
33
244,400
206,844

7,439,205
7,145,445
31,221,317
31,911,305
DIRECTOR
Annual Report 2015
111
PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED JUNE 30, 2015

Note

Sales - net
34
Cost of goods sold
35

Gross profit

Distribution cost
36
37
Other charges
38
2015
2014
20,720,054
(13,224,431)
18,968,547
(12,445,562)
7,495,623
6,522,985
(1,313,696)
(381,363)
(263,187)
(1,054,336)
(296,689)
(197,372)

(1,958,246)
(1,548,397)

Other income
39
46,173
80,585

Profit from operations
5,583,550
5,055,173

Finance cost
40
(1,082,639)
(1,464,772)

Profit before taxation
4,500,911
3,590,401

Taxation
41
(1,046,616)
(760,227)

Profit after taxation
3,454,295
2,830,174

-----------------Rupees----------------

Earnings per share - basic and diluted
42
6.55
5.36

112
MAPLE LEAF CEMENT
DIRECTOR
STATEMENT OF COMPREHENSIVE INCOME

2015
2014
3,454,295
2,830,174
(22,638)
6,713
(16,323)
4,492
(15,925)
(11,831)
95,013
(24,682)
70,331
3,508,701
2,818,343
Other comprehensive income
Other comprehensive income - transferred to equity

Related tax
Other comprehensive income - not transferred to equity
Total comprehensive income for the year
DIRECTOR
Annual Report 2015
113
CASH FLOW STATEMENT


2015
2014

Note
Cash flowS from operating activities

4,500,911
3,590,401
Adjustments for:

Depreciation
1,772,554
1,690,247

Provision for doubtful debts
-
593

Reversal of provision for doubtful debts
(5,157)

Provision for slow moving stores reversed
(41,033)

Provision for Workers Profit Participation Fund
236,324
194,168

Stock-in-trade written off
68,685
39,472
Bad debts written off
27,714
4,466

Loss / (gain) on disposal of property, plant and equipment
24,117
(9,764)

(Gain) / loss on re-measurement of short term investment at fair value
(3,750)
570

Retirement benefits
25,359
26,183

Finance cost
1,082,639
1,464,772

Profit on bank deposits
(14,459)
(13,850)

Cash generated from operations before working capital changes
7,673,904
6,987,258

Effect on cash flow due to working capital changes

(Increase) / decrease in current assets

(381,878)
(21,417)

Stock-in-trade
(123,798)
(252,033)

Trade debts
245,909
(86,152)

Loans and advances
(66,573)
(745,805)

Short term deposits and prepayments
(15,289)
1,128

Other receivables
(32,637)
68,614

(374,266)
(1,035,665)
(Decrease) / increase in current liabilities

(309,606)
306,320

(683,872)
(729,345)

Net cash generated from operations
6,990,032
6,257,913

Increase in long term loans to employees
(2,073)
(832)
Retirement benefits paid
(17,963)
(21,737)
Workers Profit Participation Fund paid
(71,867)
(57,301)
Taxes paid
(326,386)
(238,857)

Net cash generated from operating activities
6,571,743
5,939,186

Cash flowS from investing activities

Capital expenditure
(786,684)
(768,756)
Proceeds from disposal of property, plant and equipment
70,267
12,696
(Increase) / decrease in long term deposits
(1,045)
733
Redemption of long term investment
1,625
15,848
11,844

Net cash used in investing activities
(699,989)
(743,483)

Cash flowS from financing activities

Repayment of long term loans from banking companies - secured
(397,744)
(1,674,205)
Redemption of redeemable capital - secured
(2,854,714)
(1,032,869)
Repayment of syndicated term finances - secured
(762,500)
(183,125)
Decrease in long term deposits
(260)
(150)
Payment of liabilities against assets subject to finance lease - net
(108,574)
(152,545)
Acquisition / (repayment) of short term borrowings
323,981
(322,891)
Finance cost paid
(1,123,209)
(1,646,567)
(20)
(163,780)
Dividend paid
(524,391)
(20)

(5,447,431)
(5,176,152)

424,323
19,551
Cash and cash equivalents at beginning of the year
(255,311)
(274,862)

Cash and cash equivalents at end of the year
43
169,012
(255,311)



114
MAPLE LEAF CEMENT
DIRECTOR
Annual Report 2015
115
Capital Reserves
Revenue Reserves
DIRECTOR
At 30 June 2013
5,277,340
1,529,874
528,263
2,058,137
(564,564)
6,770,913


Profit for the year ended 30 June 2014
-
-
-
-
2,830,174
2,830,174
Other comprehensive income for the year ended 30 June 2014
-
-
-
-
(11,831)
(11,831)

-
-
-
-
2,818,343
2,818,343
Transfer of incremental depreciation from surplus on revaluation
of fixed assets - net of tax
-
-
-
-
160,157
160,157
Reversal of revaluation surplus on disposal of fixed assets - net of tax
-
-
-
-
163
163

At 30 June 2014
5,277,340
1,529,874
528,263
2,058,137
2,414,100
9,749,577


Profit for the year ended 30 June 2015
-
-
-
-
3,454,295
3,454,295
Other comprehensive income for the year ended 30 June 2015
(15,925)
(15,925)

-
-
-
-

-
-
-
-
3,438,370
3,438,370

Transfer of incremental depreciation from surplus on revaluation
of fixed assets - net of tax
-
-
-
-
244,644
244,644
Reversal of revaluation surplus on disposal of fixed assets - net of tax
-
-
-
-
6,801
6,801

Transaction with owners of the Company

Interim cash dividend at Re. 1 per share for the year ended 30 June 2015
-
-
-
-
(527,734)
(527,734)

At 30 June 2015
5,277,340
1,529,874
528,263
2,058,137
5,576,181
12,911,658

...... ( Rupees in thousand ) ......

Share
Share
Capital
Sub-
Accumulated
Total

Capital
premium
redemption
total
profits / (losses)
Equity
reserve

STATEMENT OF CHANGES IN EQUITY
NOTES TO FINANCIAL STATEMENTS

1. Reporting entity

Maple Leaf Cement Factory Limited (the Company) was incorporated in Pakistan on 13 April 1960
under the Companies Act, 1913 (now the Companies Ordinance, 1984) as a public company limited by
shares. The Company is currently listed on all three stock exchanges of Pakistan. The registered office
of the Company is situated at 42-Lawrence Road, Lahore, Pakistan. The cement factory is located at
Iskanderabad District Mianwali in the province of Punjab. The principal activity of the Company is
production and sale of cement. The Company is a subsidiary of Kohinoor Textile Mills Limited (the
Holding Company).

2. Basis of preparation

2.1 Statement of compliance

These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984.
Approved accounting standards comprise of such International Financial Reporting Standards
(IFRSs) issued by the International Accounting Standards Board as notified under the Companies
Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. In
case requirements differ, the provisions of or directives of the Companies Ordinance, 1984 shall
prevail.

2.2 Basis of measurement

These financial statements have been prepared under the historical cost convention except for
the following:

- certain financial instruments at fair value;

- certain property, plant and equipment at revalued amounts; and

- recognition of employee retirement benefits at present value.

2.3 Functional and presentation currency

These financial statements have been prepared in Pak Rupees (Rs) which is the Companys
functional currency.

2.4 Use of estimates and judgments

The preparation of financial statements in conformity with approved accounting standards
requires management to make judgments, estimates and assumptions that affect the application
of policies and reported amounts of assets, liabilities, income and expenses. The estimates
and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under circumstances, and the results of which form the basis for
making judgment about carrying value of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which estimates are revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.

The areas where assumptions and estimates are significant to the Companys financial statements
or where judgment was exercised in application of accounting policies are as follows:

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MAPLE LEAF CEMENT

2.4.1 Property, plant and equipment

The Company reviews the useful lives and residual values of Property, plant and equipment on
regular basis. Any change in estimates in future years might affect the carrying amounts of the
respective items of Property, plant and equipment with a corresponding effect on the depreciation
charge and impairment.

2.4.2 Stores, spare parts and loose tools

The Company reviews the stores, spare parts and loose tools for possible impairment on an annual
basis. Any change in estimates in future years might affect the carrying amounts of the respective
items of stores and spare parts and loose tools with a corresponding effect on the provision.

2.4.3 Stock-in-trade

The Company reviews the carrying amount of stock-in-trade on a regular basis. Carrying amount
of stock-in-trade is adjusted where the net realizable value is below the cost. Net realizable
value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and estimated costs necessary to make the sale.

2.4.4 Provision for doubtful debts, advances and other receivables

The Company reviews the recoverability of its trade debts, advances and other receivables to
assess amount of bad debts and provision required there against on annual basis.

2.4.5 Employee benefits

The Company operates approved funded gratuity scheme covering all its full time permanent
workers who have completed the minimum qualifying period of service as defined under the
respective scheme. The gratuity scheme is managed by trustees. The calculation of the benefit
requires assumptions to be made of future outcomes, the principal ones being in respect of
increase in remuneration and the discount rate used to convert future cash flows to current
values. The assumptions used for the plan are determined by independent actuary on annual
basis.

The amount of the expected return on plan assets is calculated using the expected rate of
return for the year and the market-related value at the beginning of the year. Gratuity cost
primarily represents the increase in actuarial present value of the obligation for benefits earned
on employee service during the year and the interest on the obligation in respect of employee
service in previous years, net of the expected return on plan assets. Calculations are sensitive to
changes in the underlying assumptions.

2.4.6 Impairment

The management of the Company reviews carrying amounts of its assets including receivables
and advances and cash generating units for possible impairment and makes formal estimates of
recoverable amount if there is any such indication.

2.4.7 Taxation

The Company takes into account the current income tax law and decisions taken by the taxation
authorities. Instances where the Companys views differ from the views taken by the income tax
department at the assessment stage and where the Company considers that its view on items of
material nature is in accordance with law, the amounts are shown as contingent liabilities.

Annual Report 2015
117
The Company also regularly reviews the trend of proportion of incomes between Presumptive
Tax Regime income and Normal Tax Regime income and the change in proportions, if significant,
is accounted for in the year of change.

2.4.8 Provisions and contingencies

The Company reviews the status of all pending litigations and claims against the Company.
Based on its judgment and the advice of the legal advisors for the estimated financial outcome,
appropriate disclosure or provision is made. The actual outcome of these litigations and claims can
have an effect on the carrying amounts of the liabilities recognized at the balance sheet date.

2.4.9 Revaluation of property, plant and equipment

Revaluation of property, plant and equipment is carried out by an independent professional valuer.
Revalued amounts of non-depreciable items are determined by reference to local market values and
that of depreciable items are determined by reference to present depreciated replacement values.

The frequency of revaluations depends upon the changes in fair values of the items of property,
plant and equipment being revalued. When the fair value of a revalued asset differs materially from
its carrying amount, a further revaluation is required. Such frequent revaluations are unnecessary
for items of property, plant and equipment with only insignificant changes in fair value. Instead, it
may be necessary to revalue the item only every three or five years.

3. Summary of significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements.

3.1 Employee benefits

Defined contribution plan

The Company operates a defined contributory approved Provident Fund Trust for all its employees.
Equal monthly contributions are made both by the Company and employees at the rate of 10.00%
of the basic salary to the Provident Fund Trust. Obligation for contributions to defined contribution
plan is expensed as the related service is provided.

Defined benefit plan

The Company operates approved funded gratuity scheme for all its full time permanent workers
who have completed the minimum qualifying period of service as defined under the respective
scheme. Provision is made annually to cover obligations under the scheme on the basis of actuarial
valuation and is charged to profit and loss account.

The Companys net obligation in respect of defined benefit plan is calculated by estimating the
amount of future benefit that employees have earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan assets.

Calculation of defined benefit obligation is performed annually by a qualified actuary using the
projected unit credit method. When the calculation results in a potential asset for the Company,
the recognized asset is limited to the present value of economic benefits available in the form of
any future refunds from the plan or reductions in future contribution to the plan. To calculate the
present value of economic benefits, consideration is given to any applicable minimum funding
requirements.

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MAPLE LEAF CEMENT
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if, any excluding
interest), are recognized immediately in OCI. The Company determines the net interest expense
(income) on the net defined benefit liability (asset) for the period by applying the discount rate
used to measure the defined benefit obligation at the beginning of the annual period to the thennet defined benefit liability (asset), taking into account any changes in the net defined benefit
liability (asset) during the period as a result of contributions and benefit payments. Net interest
expense and other expenses related to defined benefit plan is recognized in profit and loss
account.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or loss on curtailment is recognized immediately in
profit and loss account. The Company recognizes gains and losses on the settlement of a defined
benefit plan when the settlement occurs.

Liability for employees compensated absences

The Company accounts for the liability in respect of employees compensated absences in the
year in which these are earned. Provision to cover the obligations is made using the current salary
level of employees.

3.2 Taxation

Current

Current tax is the amount of tax payable on taxable income for the year, using tax rates enacted
or substantively enacted by the reporting date, and any adjustment to the tax payable in respect
of previous years. Provision for current tax is based on current rates of taxation in Pakistan after
taking into account tax credits, rebates and exemptions available, if any. The amount of unpaid
income tax in respect of the current or prior periods is recognized as a liability. Any excess paid
over what is due in respect of the current or prior periods is recognized as an asset.

Deferred

Deferred tax is recognized using the balance sheet liability method on all temporary differences
between the carrying amounts of assets and liabilities for the financial reporting purposes and the
amounts used for taxation purposes.

Deferred tax asset is recognized for all the deductible temporary differences only to the extent
that it is probable that future taxable profits will be available against which the asset may be
utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related
tax benefit will be realized. Deferred tax liabilities are recognized for all the taxable temporary
differences.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled, based on the tax rates that have been
enacted or substantively enacted by the balance sheet date.

Deferred tax is charged or credited in the income statement, except in the case of items credited
or charged to comprehensive income or equity, in which case it is included in comprehensive
income or equity.

Annual Report 2015
119

3.3 Leases

Leases are classified as finance lease whenever terms of the lease transfer substantially all risks
and rewards of ownership to the lessee. All other leases are classified as operating leases.

The liability to the lessor is included in the balance sheet as liabilities against assets subject to
finance lease. The liabilities are classified as current and non-current depending upon the timing
of payment. Lease payments are apportioned between finance charges and reduction of the
liabilities against assets subject to finance lease so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged to profit and loss account, unless
they are directly attributable to qualifying assets, in which case they are capitalized in accordance
with the Companys general policy on borrowing costs.

Rentals payable under operating leases are charged to profit and loss account on a straight-line
basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter
into an operating lease are also spread on a straight line basis over the lease term.

3.4 Property, plant and equipment

3.4.1 Tangible assets

Owned

Tangible assets except freehold land, buildings on freehold land, roads, bridges and railway
sidings, plant and machinery are stated at cost less accumulated depreciation and impairment
in value, if any. Buildings on freehold land, roads, bridges and railway sidings and plant and
machinery are stated at revalued amount being the fair value at the date of revaluation,
less any subsequent accumulated depreciation and impairment losses while freehold land is
stated at revalued amount being the fair value at the date of revaluation, less any subsequent
impairment losses, if any. Increase in the carrying amount arising on revaluation is credited
to Revaluation of fixed assets and the same is dealt in accordance with section 235 of the
Companies Ordinance, 1984. Surplus on revaluation is booked by restating gross carrying
amounts of respective assets being revalued, proportionately to the change in their carrying
amounts due to revaluation. The accumulated depreciation at the date of revaluation is also
adjusted to equal difference between gross carrying amounts and the carrying amounts
of the assets after taking into account accumulated impairment losses. The surplus on
revaluation of fixed assets to the extent of the annual incremental depreciation based on
the revalued carrying amount of the asset and the depreciation based on the assets original
cost is transferred annually to retained earnings net of related deferred tax. Upon disposal,
any revaluation reserve relating to the particular assets being sold is transferred to retained
earnings. All transfers to / from surplus on revaluation of fixed assets account are net of
applicable deferred income tax.

Capital work-in-progress is stated at cost less identified impairment losses, if any. All
expenditure connected with specific assets incurred during installation and construction
period are carried under capital work-in-progress. These are transferred to specific assets as
and when these are available for use.

All other repair and maintenance costs are charged to income during the period in which
these are incurred.

Gains / losses on disposal or retirement of tangible assets, if any, are taken to profit and loss
account.

Depreciation is calculated at the rates specified in note 19.1 on reducing balance method
except that straight-line method is used for the plant and machinery and buildings relating to
dry process plant after deducting residual value. Depreciation on additions and deletions is
charged on the month in which the addition / deletion is made

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MAPLE LEAF CEMENT
Leased

Assets held under finance lease arrangements are initially recorded at the lower of present
value of minimum lease payments under the lease agreements and the fair value of the leased
assets. Depreciation on leased assets is charged by applying reducing balance method at the
rates used for similar owned assets, so as to depreciate the assets over their estimated useful
lives in view of certainty of ownership of assets at end of the lease term.

The assets residual values and useful lives are reviewed and adjusted, if appropriate, at each
balance sheet date.

3.4.2 Intangible assets

Intangible asset is stated at cost less accumulated amortization for finite intangible asset and
any identified impairment loss. The estimated useful life and amortization method is reviewed
at the end of each annual reporting period, with effect of any changes in estimate being
accounted for on a prospective basis.

Finite intangible assets are amortized using straight-line method over a period of three years.
Amortization on additions to intangible assets is charged from the month in which an asset is
put to use and on disposal up to the month of disposal.

3.5 Impairment

3.5.1 Financial assets

A financial asset is assessed at each reporting date to determine whether there is any
objective evidence that it is impaired. Individually significant financial assets are tested for
impairment on an individual basis. The remaining financial assets are assessed collectively
in groups that share similar credit risk characteristics. A financial asset is considered to be
impaired if objective evidence indicates that one or more events have had a negative effect
on the estimated future cash flows of the asset.

An impairment loss in respect of a financial asset measured at amortized cost is calculated as
the difference between its carrying amount, and the present value of the estimated future
cash flows discounted at the original effective interest rate. Impairment loss in respect of
a financial asset measured at fair value is determined by reference to that fair value. All
impairment losses are recognized in profit and loss account. An impairment loss is reversed
if the reversal can be related objectively to an event occurring after the impairment loss
was recognized. An impairment loss is reversed only to the extent that the financial assets
carrying amount after the reversal does not exceed the carrying amount that would have
been determined, net of amortization, if no impairment loss had been recognized. Reversal
of impairment loss is recognized in profit and loss account except in the case of available for
sale instruments where the reversal is included in other comprehensive income.

3.5.2 Non-financial assets

The carrying amount of the Companys non-financial assets, other than inventories and
deferred tax assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the assets recoverable amount
is estimated. The recoverable amount of an asset or cash generating unit is the greater of its
value in use and its fair value less cost to sell. In assessing value in use, the estimated future
cash flows are discounted to their present values using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset or
cash generating unit.

An impairment loss is recognized if the carrying amount of the assets or its cash generating
unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit and
loss account. Impairment losses recognized in respect of cash generating units are allocated
to reduce the carrying amounts of the assets in a unit on a pro rata basis. Impairment losses
Annual Report 2015
121
recognized in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to that extent that the assets carrying amount after the reversal does not exceed the
carrying amount that would have been determined, net of depreciation and amortization, if
no impairment loss had been recognized.

3.6 Investments

Available-for-sale

Investments which are intended to be held for an undefined period of time but may be sold in
response to the need for liquidity or changes in interest rates are classified as available-for-sale.

These are measured at fair value. The Company uses latest stock exchange quotations to
determine the fair value of its quoted investments whereas fair value of investments in un-quoted
companies is determined by applying the appropriate valuation techniques as permissible under
IAS 39 (Financial Instruments: Recognition and Measurement). Gains or losses on available-forsale investments are recognized directly in other comprehensive income until the investments
are sold or disposed-off, or until the investments are determined to be impaired, at that time
cumulative gain or loss previously recognized in other comprehensive income, is re-classified
from equity to profit and loss account as re-classification adjustment.

At fair value through profit and loss account

Investments at fair value through profit and loss are those which are acquired for generating a
profit from short-term fluctuation in prices. All investments are initially recognized at cost, being
the fair value of the consideration given. Subsequent to initial recognition, these investments are
re-measured at fair value (quoted market price). Any gain or loss from a change in the fair value is
recognized in profit and loss account.

Held to maturity investments

Held to maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity that the Company has positive intention to hold to maturity.
Investments classified as held to maturity are recognized initially at fair value, plus attributable
transaction costs. Subsequent to initial recognition, held to maturity financial assets are measured
at amortized cost using the effective interest method, less any impairment loss, if any.

3.7 Loans and receivables

Loans and receivables are recognized initially at fair value, plus attributable transaction costs.
Subsequent to initial recognition, loans and receivables are stated at amortized cost with any
difference between cost and redemption value being recognized in the profit and loss account
over the period of the investments on an effective yield method less impairment loss, if any.

3.8 Stores, spare parts and loose tools

These are stated at lower of cost and net realizable value. Cost is determined using the weighted
average method. Items in transit are valued at cost comprising invoice value plus other charges
paid thereon.

3.9 Stock-in-trade

Stocks are valued at the lower of cost and net realizable value. Cost is determined as follows:

Raw material
at weighted average cost

Packing material
at weighted average cost

Work in process
at weighted average manufacturing cost

Finished goods
at weighted average manufacturing cost

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MAPLE LEAF CEMENT
Average manufacturing cost in relation to work in process and finished goods consists of direct
material, labor and a proportion of appropriate manufacturing overheads.

Net realizable value signifies the estimated selling price in the ordinary course of business less
estimated costs of completion and estimated costs necessary to make the sale.

3.10 Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to contractual
provisions of the instrument and de-recognized when the Company looses control of contractual
rights that comprise the financial asset and in case of financial liability when the obligation
specified in the contract is discharged, cancelled or expired. Any gain or loss on derecognition of
financial assets and liabilities are included in profit and loss account for the year.

Non-derivative financial liabilities are initially recognized at fair value less any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized
cost using effective interest method. The carrying values of liabilities approximates to their
amortized cost.

Derivatives are initially recorded at cost which is the fair value of consideration given or received
respectively on the date a derivative contract is entered into and are remeasured to fair
value, amortized cost or cost as the case may be at subsequent reporting dates. The method
of recognizing the resulting gain or loss depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being hedged. The Company designates
certain derivatives as cash flow hedges.

The Company documents at inception of transaction the relationship between hedging instruments
and hedged items, as well as its risk management objective and strategy for undertaking various
hedge transactions. The Company also documents its assessment, both at hedge inception and
on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly
effective in offsetting changes in cash flow of hedged items.

The effective portion of changes in the fair value of derivates that are designated and qualify as
cash flow hedges are recognized in equity. The gain or loss relating to the ineffective portion is
recognized immediately in the profit and loss account.

Amounts accumulated in equity are recognized in profit and loss account in the periods when the
hedged item will effect profit or loss. However, when the forecast hedged transaction results in
the recognition of a non-financial assets or a liability, the gains and losses previously deferred in
equity are transferred from equity and included in the initial measurement of the cost of the asset
or liability.

3.11 Trade and other payables

Creditors relating to trade and other payables are carried at cost which is the fair value of
consideration to be paid in the future for goods and services received, whether or not billed to
the Company.

3.12 Trade debts

Trade debts are stated initially at the fair value, subsequent to initial recognition. These are stated
at their amortized cost as reduced by appropriate provision for impairment, known impaired
receivables are written off, while receivables considered doubtful are fully provided for.

3.13 Off setting of financial instruments

Financial assets and liabilities are off-set and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to
settle on a net basis, or realize the asset and settle the liability simultaneously.

Annual Report 2015
123

3.14 Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand, running
finance and cash at banks.

3.15 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be measured reliably. Revenue is measured at fair value of
consideration received or receivable on the following basis:

- Sales are recorded when significant risks and rewards of ownership of the goods have passed
to the customers;

Dividend income is recognized when the Companys right to receive the dividend is established;
and

- Interest income is recognized as and when accrued on effective interest method.

3.16 Foreign currency translations

Transactions in foreign currencies are initially recorded at the rates of exchange ruling on the dates
of transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated
into Pak Rupees at exchange rates prevailing on the balance sheet date. All exchange differences
are charged to profit and loss account.

3.17 Borrowings

All borrowings are recorded at the proceeds received. Borrowing costs directly attributable to
the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use are added to the cost of
those assets, until such time as the assets are substantially ready for their intended use. All
other borrowing costs are charged to profit and loss account in the period in which these are
incurred.

3.18 Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as
a result of past events, it is probable that an outflow of resources will be required to settle the
obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
balance sheet date and adjusted to reflect the current best estimate.

3.19 Earnings per share (EPS)

Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by adjusting basic EPS with weighted average number of ordinary
shares that would be issued on conversion of all dilutive potential ordinary shares into ordinary
shares and post-tax effect of changes in profit or loss attributable to ordinary shareholders of the
Company that would result from conversion of all dilutive potential ordinary shares into ordinary
shares.

3.20 Dividend distribution

Dividend is recognized as a liability in the period in which it is declared.

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MAPLE LEAF CEMENT

3.21 Mark-up bearing borrowings

Mark-up bearing borrowings are recognized initially at cost representing the fair value of
consideration received less attributable transaction costs. Subsequent to initial recognition,
mark-up bearing borrowings are stated at original cost less subsequent repayments, while the
difference between the original recognized amounts (as reduced by periodic payments) and
redemption value is recognized in the profit and loss account over the period of borrowings on
an effective rate basis. The borrowing cost on qualifying asset is included in the cost of related
asset.

4. Standards, interpretations and amendments to published approved accounting
standards

The following standards, amendments and interpretations of approved accounting standards will be
effective for accounting periods beginning on or after 01 July 2015

-
Amendments to IAS 38 Intangible Assets and IAS 16 Property, Plant and Equipment (effective for
annual periods beginning on or after 1 January 2016) introduce severe restrictions on the use of
revenue-based amortization for intangible assets and explicitly state that revenue-based methods
of depreciation cannot be used for property, plant and equipment. The rebuttable presumption
that the use of revenue-based amortization methods for intangible assets is inappropriate can be
overcome only when revenue and the consumption of the economic benefits of the intangible
asset are highly correlated, or when the intangible asset is expressed as a measure of revenue.
The amendments are not likely to have an impact on the Companys financial statements.

-
IFRS 10 Consolidated Financial Statements (effective for annual periods beginning on or after 1
January 2015) replaces the part of IAS 27 Consolidated and Separate Financial Statements. IFRS
10 introduces a new approach to determining which investees should be consolidated. The single
model to be applied in the control analysis requires that an investor controls an investee when
the investor is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. IFRS 10 has made
consequential changes to IAS 27 which is now called Separate Financial Statements and will deal
with only separate financial statements. Certain further amendments have been made to IFRS 10,
IFRS 12 and IAS 28 clarifying the requirements relating to accounting for investment entities and
would be effective for annual periods beginning on or after 1 January 2016.

-
IFRS 11 Joint Arrangements (effective for annual periods beginning on or after 1 January 2015)
replaces IAS 31 Interests in Joint Ventures. Firstly, it carves out, from IAS 31 jointly controlled
entities, those cases in which although there is a separate vehicle, that separation is ineffective
in certain ways. These arrangements are treated similarly to jointly controlled assets / operations
under IAS 31 and are now called joint operations. Secondly, the remainder of IAS 31 jointly
controlled entities, now called joint ventures, are stripped of the free choice of using the equity
method or proportionate consolidation; they must now always use the equity method. IFRS 11 has
also made consequential changes in IAS 28 which has now been named Investment in Associates
and Joint Ventures. The amendments requiring business combination accounting to be applied
to acquisitions of interests in a joint operation that constitutes a business are effective for annual
periods beginning on or after 1 January 2016. The adoption of this standard is not likely to have an
impact on the Companys financial statements.

-
IFRS 12 Disclosure of Interests in Other Entities (effective for annual periods beginning on or
after 1 January 2015) combines the disclosure requirements for entities that have interests in
subsidiaries, joint arrangements (i.e. joint operations or joint ventures), associates and / or
unconsolidated structured entities, into one place. The adoption of this standard is not likely to
have an impact on the Companys financial statements.

-
IFRS 13 Fair Value Measurement (effective for annual periods beginning on or after 1 January
2015) defines fair value, establishes a framework for measuring fair value and sets out disclosure
requirements for fair value measurements. IFRS 13 explains how to measure fair value when
Annual Report 2015
125
it is required by other IFRSs. It does not introduce new fair value measurements, nor does it
eliminate the practicability exceptions to fair value measurements that currently exist in certain
standards. The adoption of this standard is not likely to have an impact on the Companys financial
statements.

-
Amendments to IAS 27 Separate Financial Statements (effective for annual periods beginning
on or after 1 January 2016). The amendments to IAS 27 will allow entities to use the equity
method to account for investments in subsidiaries, joint ventures and associates in their separate
financial statements. The adoption of the amended standard is not likely to have an impact on the
Companys financial statements.

-
Agriculture: Bearer Plants [Amendments to IAS 16 and IAS 41] (effective for annual periods
beginning on or after 1 January 2016). Bearer plants are now in the scope of IAS 16 Property, Plant
and Equipment for measurement and disclosure purposes. Therefore, a company can elect to
measure bearer plants at cost. However, the produce growing on bearer plants will continue to
be measured at fair value less costs to sell under IAS 41 Agriculture. A bearer plant is a plant that: is
used in the supply of agricultural produce; is expected to bear produce for more than one period;
and has a remote likelihood of being sold as agricultural produce. Before maturity, bearer plants
are accounted for in the same way as self-constructed items of property, plant and equipment
during construction. The adoption of the amended standard is not likely to have an impact on the

-
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments
to IFRS 10 and IAS 28) [effective for annual periods beginning on or after 1 January 2016]. The
main consequence of the amendments is that a full gain or loss is recognized when a transaction
involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized
when a transaction involves assets that do not constitute a business, even if these assets are
housed in a subsidiary. The adoption of these amendments is not likely to have an impact on the

Annual Improvements 2012-2014 cycles (amendments are effective for annual periods beginning on or
after 1 January 2016). The new cycle of improvements contain amendments to the following standards:

-
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. IFRS 5 is amended to clarify
that if an entity changes the method of disposal of an asset (or disposal group) i.e. reclassifies an
asset from held for distribution to owners to held for sale or vice versa without any time lag, then
such change in classification is considered as continuation of the original plan of disposal and if an
entity determines that an asset (or disposal group) no longer meets the criteria to be classified as
held for distribution, then it ceases held for distribution accounting in the same way as it would
cease held for sale accounting.

-
IFRS 7 Financial Instruments- Disclosures. IFRS 7 is amended to clarify when servicing arrangements
are in the scope of its disclosure requirements on continuing involvement in transferred financial
assets in cases when they are derecognized in their entirety. IFRS 7 is also amended to clarify that
additional disclosures required by Disclosures: Offsetting Financial Assets and Financial Liabilities
(Amendments to IFRS7) are not specifically required for inclusion in condensed interim financial
statements for all interim periods.

-
IAS 19 Employee Benefits. IAS 19 is amended to clarify that high quality corporate bonds or
government bonds used in determining the discount rate should be issued in the same currency
in which the benefits are to be paid.

-
IAS 34 Interim Financial Reporting. IAS 34 is amended to clarify that certain disclosures, if they
are not included in the notes to interim financial statements and disclosed elsewhere should be
cross referred.
126
MAPLE LEAF CEMENT

2015
2014

Note
5. SHARE CAPITAL

5.1 Authorized share capital

Number of shares

600,000,000 (2014: 600,000,000) ordinary

shares of Rs. 10 each
6,000,000
6,000,000

100,000,000 (2014: 100,000,000) 9.75 % redeemable

cumulative preference shares of Rs. 10 each
1,000,000
1,000,000

700,000,000
7,000,000
7,000,000

5.2 Issued, subscribed and paid-up share capital

Number of shares

290,359,856 (2014: 290,359,856) ordinary shares

of Rs. 10 each fully paid in cash

35,834,100 (2014: 35,834,100) ordinary shares

of Rs. 10 each issued as fully paid

for consideration other than cash

46,069,400 (2014: 46,069,400) ordinary shares


bonus shares

153,846,153 (2014: 153,846,153) ordinary shares


right shares at discount
5.2.1

1,624,417 (2014: 1,624,417) ordinary shares of

Rs. 10 each issued as conversion of

preference shares into ordinary shares 5.2.2

527,733,926
2,903,599
2,903,599
358,341
358,341
460,694
460,694
1,538,462
1,538,462
16,244
16,244
5,277,340
5,277,340
5.2.1 During the financial year ended 30 June 2011, Company issued 153,846,153 shares at Rs. 6.50 per share at
a discount of Rs. 3.50 per share otherwise than right against Rs. 1,000 million to the Holding Company,
after complying with all procedural requirements in this respect.

5.2.2 During the financial years ended 30 June 2011 and 30 June 2012, 1,321,095 preference shares were
converted into 1,624,417 ordinary shares at a conversion rate of 1.2296.

5.3 The Holding Company holds 291,410,425 (2014: 306,410,425) ordinary shares, which represents 55.22%
(2014: 58.06%) of total ordinary issued, subscribed and paid-up share capital of the Company.
5.4
Zimpex (Private) Limited, an associated undertaking, holds 1,706 (2014: 1,706) ordinary shares of the
Company.
Annual Report 2015
127

2015
2014

Note
6. CAPITAL RESERVES

Capital redemption reserve

Share premium reserve
6.1
6.2
6.1
528,263
1,529,874
528,263
1,529,874
2,058,137
2,058,137
This reserve has been created under section 85 of the Companies Ordinance, 1984 for redemption
of preference shares.

6.2 This reserve can be utilized by the Company only for the purpose specified in section 83(2) of the
Companies Ordinance, 1984.

2015
2014

7. Surplus on revaluation of FIXED ASSETS - net of tax

Gross surplus

At beginning of the year
6,608,146
6,956,695

Surplus on revaluation of fixed assets during the year
95,013

Less:

Effect of disposal of fixed assets
(9,668)
(225)

Transferred to accumulated profits in respect of incremental

depreciation charge for the year
(347,769)
(348,324)

At end of the year
6,345,722
6,608,146

Deferred tax liability on revaluation surplus

1,716,631
1,904,860

Tax on surplus during the year
24,682

Effect of disposal of fixed assets
(2,867)
(62)

Incremental depreciation charged on related assets
(103,124)
(188,167)

Effect of change in tax rate
(40,682)

At end of the year
1,594,640
1,716,631

4,751,082
4,891,515

7.1
The Companys freehold land, buildings on freehold land, roads, bridges and railway sidings and
plant and machinery were revalued by Arif Evaluators, an independent valuer not connected with
the Company and approved by Pakistan Banks Association (PBA) in any amount category, at 22
June 2015. The basis of revaluation for items of these fixed assets were as follows:

Freehold land

Fair market value of freehold land was assessed through inquiries to real estate agents and
property dealers in near vicinity of freehold land. Different valuation methods and exercises were
adopted according to experience, location and other usage of freehold land. Valuer had also
considered all relevant factors as well.

128
MAPLE LEAF CEMENT
Buildings on freehold land, roads, bridges and railway sidings

Construction specifications were noted for each building and structure and new construction
rates are applied according to construction specifications for current replacement values. After
determining current replacement values, depreciation was calculated to determine the current
assessed market value.

Plant and machinery

Suppliers and different cement plant consultants in Pakistan and abroad were contacted to
collect information regarding current prices of comparable cement plant to determine current
replacement value. Fair depreciation factor for each item is applied according to their physical
condition, usage and maintenance.

2015
2014

Note
8. Long term loans from banking companies - secured

Habib Bank Limited - long term finance facility (LTFF)
8.1
-

Habib Bank Limited - term loan
8.2
27,519
385,279

HSBC Bank Middle East Limited - medium term loan
8.3
-
76,190

Islamic Corporation for the Development of Private

Sector (ICD) - deferred mark-up loan
8.4
10,595
17,146

Allied Bank Limited - deferred mark-up loan
8.5
-

38,114
478,615

8.1 Habib Bank Limited - long term finance facility (LTFF)

23,391
263,507

Less: Payment made during the year
(23,391)
(240,116)

-

Less: Current maturity presented under

current liabilities
8.6
-
23,391
(23,391)
At end of the year

-

8.1.1 During financial year 2010, the Company entered into restructuring agreement with Habib Bank
Limited (HBL) for Rs. 791 million. Tenor of LTFF is four and a half years. The principal amount was
repayable in nine semi annual installments started from June 2010. The facility carried mark-up at
9.70% (2014: 9.70%) per annum payable quarterly in arrears. This facility was secured by first pari
passu equitable hypothecation / mortgage charge of Rs. 2,250 million on all present and future
fixed assets of the Company, personal guarantees of directors of the Company and subordination
of the entire sum of directors / sponsors loan outstanding at any point in time up to Rs. 150
million. The facility has been repaid during the year.

Annual Report 2015
129

Note

8.2 Habib Bank Limited - term loan


2015
2014
495,359
(357,760)
632,959
(137,600)

137,599
495,359


current liabilities
8.6
(110,080)
(110,080)

At end of the year
27,519
385,279

8.2.1 During financial year 2011, the Company entered into restructuring agreement with HBL for Rs.
790.52 million. The purpose of this loan was to restructure existing loans (loan-1 and loan II) for
import of Waste Heat Recovery Plant. As per terms of restructuring, the principal is repayable
in nine years including grace period of twenty four months applicable from cut off date of 31
December 2009.

8.2.2 Principal repayment commenced from 01 January 2012 as follows:

01 January 2012
Rs. 25 million

31 March 2012
Rs. 25 million

30 June 2012
Rs. 25 million

The remaining principal is to be repaid in twenty six equal quarterly installments of Rs. 27.52
million each, commenced from quarter ended 30 September 2012.

During the year, the facility carried mark-up at the rate of six month KIBOR plus a spread of 2.00%
per annum, payable quarterly in arrears. During the current year, mark-up ranged from 11.63% to
12.17% (2014: 10.09% to 12.15%) per annum.

From 01 January 2016 to 31 December 2018, the facility will carry mark-up at the rate of six month
KIBOR plus a spread of 3.00% per annum.

The facility is secured against first pari passu equitable mortgage / hypothecation charge of Rs.
2,250 million over present and future fixed assets of the Company (land, building and plant and
machinery). It is also secured by personal guarantees along with personal net worth statements
of directors of the Company and subordination of the entire sum of directors / sponsors loan
outstanding at any point in time. As per the financing document the Company is required to
comply with certain financial covenants which mainly include current ratio, minimum debt service
coverage ratio, minimum interest coverage ratio, gearing ratio and maximum leverage ratio.
Further, the Company is required to comply with certain conditions imposed by the providers of
finance to make dividend payment.

130
MAPLE LEAF CEMENT

2015
2014

Note

8.3 HSBC Bank Middle East Limited - medium term loan

114,249
161,893

(9,524)
(47,644)

104,725

Less: Transfer to redeemable capital - Sukuk
8.3.2
(104,725)


current liabilities
8.6
-

At end of the year
-

114,249
(38,059)
76,190
8.3.1 During financial year 2012, the Companys short term loan of Rs. 160 million and running finance
of Rs. 50 million was restructured by HSBC Bank Middle East Limited into a medium term loan of
Rs. 200 million. As per terms of the restructuring, the principal was repayable in twenty one equal
quarterly installments started from 23 May 2012 and ending on 23 May 2017.

This facility carried mark-up at the rate of six month KIBOR plus a spread of 1.25% per annum,
payable semi annually. During the current year mark-up ranged from 10.89% to 11.43% (2014: 10.86%
to 11.43%) per annum.

This facility was secured against first pari passu equitable hypothecation charge of Rs. 200 million
over present and future current assets of the Company, ranking hypothecation charge of Rs. 120
million over present and future current assets and personal guarantees of directors.

8.3.2 During the current year, loan from HSBC Bank Middle East Limited, amounting to Rs. 104.73 million
was converted from long term loan to Redeemable Capital - Sukuk in consequence of acquisition
of HSBC Bank Middle East Limited by Meezan Bank Limited. This has been fully repaid during the
year. The converted facility carried profit at the rate of 1 Year KIBOR + 0.93% per annum.

Note
2015
2014

8.4 Islamic Corporation for the Development of Private


24,004
30,877

Less: Payments made during the year
(7,069)
(7,219)

16,935

Exchange loss during the year
723
23,658

17,658


current liabilities
8.6
(7,063)
24,004
At end of the year

10,595

346
(6,858)
17,146
Annual Report 2015
131
As per terms of rescheduling agreement with ICD, overdue mark-up amounting to USD 0.42
million for the period from 15 December 2009 to 15 March 2011 was transferred to deferred markup loan. This deferred mark-up loan is to be paid in twenty four equal installments with the first
four installments already paid within 30 days from date of agreement (17 December 2012) and
remaining twenty installments will be paid quarterly from 15 March 2013 to 15 December 2017. The
Company has provided a fixed charge on the Escrow accounts maintained with ABL, Corporate
Branch at Kashmir Road, Lahore, against USD 14.50 million. As per the financing document, the
Company is required to comply with certain financial covenants which mainly include current
ratio, minimum debt service coverage ratio, minimum interest coverage ratio, gearing ratio and
maximum leverage ratio. Also refer to note 11.2.

2015
2014

Note

8.5 Allied Bank Limited - deferred mark-up loan

-
1,241,626

-
(1,241,626)

-


current liabilities
8.6
-

At end of the year
-

8.5.1 As a consequence of restructuring of Islamic Sukuk Certificates, Musharika agreement and

Syndicated Term Finance facility as referred in note 9 and 10 respectively, outstanding mark-up
amounting to Rs. 1,600.00 million for the period from December 2009 to March 2011 was deferred
by way of Second Addendum to the Third Supplementary Murabaha Finance Agreement and
Syndicated Term Finance Agreement dated 30 March 2010. This amount was repayable in twenty
four equal quarterly installments starting from March 2012.

During the previous year, the Company has fully paid deferred mark-up under cash sweep
mechanism in accordance with the terms of the Agreement.

2015
2014

Note

8.6 Current portion of long term loans from banking companies

Habib Bank Limited - long term finance facility - LTFF
8.1
-
23,391

Habib Bank Limited - term loan facility
8.2
110,080
110,080

HSBC Bank Middle East Limited - medium term loan
8.3
-
38,059

Islamic Corporation for the Development of Private

8.4
7,063
6,858

Allied Bank Limited - deferred mark-up loan
8.5
-

117,143
178,388

132
MAPLE LEAF CEMENT

2015
2014

Note
9. Redeemable capital - secured

Islamic Sukuk Certificates under Musharika agreement

9.1
6,183,000
7,215,869

Add: Transferred from HSBC Bank Middle East Limited
medium term loan
8.3.2
104,725

Less: Sukuk certificates repaid during the year
(2,854,714)
(1,032,869)

Less: Current maturity presented under current liabilities
3,433,011
(1,500,000)
6,183,000
(600,000)

At end of the year
1,933,011
5,583,000

9.1 The Company has issued Islamic Sukuk Certificates under Musharika agreement amounting to
Rs. 8,000 million during the year ended 30 June 2008.

9.2 The salient terms and conditions of secured sukuk issue of Rs. 8,000 million are detailed below:

Lead arranger

Shariah advisor
Meezan Bank Limited (MBL)

Purpose
Balance sheet re-profiling and replacement of conventional debt with Shariah Compliant
Financing.

Investor
Banks, DFIs, NBFI and any other person

Tenor of Sukuk issue:

Nine years including grace period of 2.75 years and repayment is to be made in 6.25 years
commenced from September 2012 and ending on December 2018.

Mark-up rate

-
-
Three month KIBOR plus a spread of 1.00%;and

Mark-up will be increased to three month KIBOR plus a spread of 1.70% per annum after five
years or complete settlement of deferred mark-up, whichever is later.
Annual Report 2015
133
Principal and mark-up payments

As per the agreement, twenty six outstanding quarterly installments are to be re-paid as per
following schedule:

Period
September 2012 - June 2015

September 2018 - December 2018
Rupees in thousand
200,000
237,500
300,000
375,000
966,500
The Company has paid principal installments falling due from December 2014 till June 2017 during
the year.
Mark-up is payable quarterly in arrears. Mark-up during the year has been calculated at rates
ranging from 8.43% to 11.35% (2014: 10.06% to 11.18%) per annum.

Form and delivery of Sukuk

The sukuk certificates have been issued under section 120 issue of securities and redeemable
capital not based on interest of the Companies Ordinance, 1984. The sukuk certificates have been
registered and inducted into the Central Depository System (CDS) of the Central Depository
Company of Pakistan (CDC).
Security

Sukuk issue of Rs. 8,000 million is secured against first pari passu charge over all present and
future fixed assets of the Company amounting to Rs. 10,667 million.

Trustee / investors agent


As per the financing document the Company is required to comply with certain financial covenants
which mainly include current ratio, minimum debt service coverage ratio, minimum interest
coverage ratio, gearing ratio and maximum leverage ratio.

134
MAPLE LEAF CEMENT

2015
2014

Note
10. Syndicated term finance - secured

10.1
1,196,000
1,379,125

(762,500)
(183,125)

433,500

(433,500)

At end of the year
-
1,196,000
(150,000)
1,046,000

10.1 The salient terms of this syndicated term finance facility are as follows:

Lead arranger and agent bank

Allied Bank Limited (ABL)

Purpose

Balance sheet re-profiling and replacement of conventional debt.

Lenders

Banks and DFIs

Facility amount

Rs. 1,500 million

Tenor

Nine years including grace period of 2.75 years.

Mark-up rate

- Three month KIBOR plus a spread of 1.00% per annum; and

- Mark up will be increased to three month KIBOR plus a spread of 1.70% per annum after 5
years or complete settlement of deferred mark-up, whichever is later.

Principal and mark-up payments

As per the agreement, twenty six outstanding quarterly installments are to be re-paid as per
following schedule:

Period

September 2018 - December 2018
Rupees in thousand
37,500
44,500
56,000
70,000
182,500
Annual Report 2015
135
The Company has paid principal installments falling due from September 2014 till March 2018
during the year.

Principal and markup are payable quarterly in arrears. Markup is calculated at rates ranging from
8.44% to 11.34% (2014: 10.06% to 11.18%) per annum.

Security

This is secured against first pari passu charge over all present and future fixed assets of the
Company amounting to Rs. 3,333 million.

As per the financing document the Company is required to comply with certain financial covenants
which mainly include current ratio, minimum debt service coverage ratio, minimum interest
coverage ratio, gearing ratio and maximum leverage.

Note
2015
2014
11. Liabilities against assets subject to finance lease - secured

Present value of minimum lease payments
11.1.1
757,049

(128,819)
840,423
(105,333)

628,230
735,090

Taxes, repair and insurance costs are borne by the Company. The Company intends to exercise its option
to purchase the above assets upon completion of the lease period.

11.1 The amount of future lease payments and the period in which they will become due are as
follows:

2015
2014

Minimum lease payments:

Not later than one year

Later than one year but not later than five years
150,064
659,777
128,278
784,214

Less: Finance cost allocated to future period
809,841
(52,792)
912,492
(72,069)

757,049
(128,819)
840,423
(105,333)

628,230
735,090

11.1.1 Present value of minimum lease payments

Not later than one year
128,819
105,333

Later than one year but not later than five years
628,230
735,090

757,049

136
MAPLE LEAF CEMENT
840,423
11.2
The Company had entered into restructuring agreement of lease facility outstanding amount with
Islamic Corporation for the Development of Private Sector (ICD) on 17 December 2012 (the Effective
Date) to acquire power generation plant Wartsila.

As per terms of restructuring agreement, the outstanding principal amounting to USD 10.67 million is
to be repaid in twenty-five installments. The first installment amount of USD 0.56 was paid to ICD on
the Effective Date and remaining twenty four quarterly installments are to be paid as per following
schedule terms:

No. of
Amount (USD)
Total
Period

Installments
Per installment Amount (USD)

15 March 2013 - 15 June 2015
10
266,665
2,666,650
15 September 2015 - 15 June 2016
4
316,665
1,266,660
4
400,000
1,600,000
4
500,000
2,000,000
15 September 2018 - 15 December 2018
2
1,288,643
2,577,286

According to revised terms, the aggregate outstanding mark-up including penalized mark-up
amounting to USD 2.54 million due up to 15 December 2012 was rescheduled as follows:

The initial period outstanding profit amounting to USD 0.20 million for the period from 15
June 2009 to 15 December 2009 was payable to ICD within 30 days of the Effective Date of the
agreement.

The second period outstanding profit amounting to USD 0.42 million from 15 December 2009 to
15 March 2011 was to be paid to ICD as follows:

(i) An amount of USD 2,094 being 0.50% of the second period profit was to be paid within 30 days
of the Effective Date.

(ii) The mark-up amount of USD 0.42 million being 99.50% of the second period profit was to
be paid to ICD in twenty four equal quarterly installments of USD 17,362 each with first
four installments already paid within 30 days from the Effective Date and remaining twenty
installments started from 15 March 2013 and ending on 15 December 2017.

Moreover, the aggregate variable mark-up amounting to USD 0.59 million for the period from 15
March 2011 to 15 December 2012 was payable to ICD within 30 days of the Effective Date.

ICD further agreed to waive the penalty amount payable by the Company to ICD pursuant to
transaction documents, being an aggregate amount of USD 1.32 million provided the Company
agreed to effecting payment of the lease facility outstanding amount in accordance with the
provision of the repayment schedule.

This facility carries mark-up rate at six month USD LIBOR plus a spread of 2.50% per annum. During
the current year mark-up has ranged from 2.83% to 2.95% (2014: 2.83% to 2.91%) per annum.

For covenants refer to note 8.4

Annual Report 2015
137
11.2.1 The Company entered into an interest rate swap agreement with Standard Chartered Bank
Pakistan Limited (SCB) in respect of this lease finance facility. The agreement became effective
from 02 February 2009 and had the following significant terms:

Notional amount
As per amortization schedule starting from USD 11.54
million in accordance with repayment schedule of the
facility.

Maturity
16 June 2014

Mark-up to be paid by the Company

on notional amount
2.45% per annum.

Mark-up to be received by the
USD-LIBOR-BBA six months except for the initial

Company on notional amount
calculation period which shall be the linear interpolation
of 4 and 5 month floating rate option.

The interest rate swap agreement matured on 16 June 2014.

12. Long term deposits

These represent deposits received from dealers and are being utilized by the Company in accordance
with the terms of dealership agreements.

2015
2014

13. Deferred taxation

Deferred tax liability on taxable temporary differences

arising in respect of:

- accelerated tax depreciation on fixed assets
3,168,778
- surplus on revaluation of fixed assets
1,594,640

4,763,418

Deferred tax asset on deductible temporary differences

arising in respect of:

- unused tax losses
(706,403)

- liabilities against assets subject to finance lease
(79,645)

- employees retirement benefits
(29,287)

- provision for doubtful debts
(1,027)

- tax credits under section 113, 113C and 65B of Income Tax

Ordinance, 2001 against normal tax charge in future years
(1,248,602)
3,335,473
1,716,631
5,052,104
(2,124,360)
(43,646)
(21,922)
(2,361)
(651,412)

(2,064,964)
(2,843,701)

2,698,454
2,208,403

138
13.1
Tax loss on account of unabsorbed depreciation amounting to Rs. 2,207 million (2014: Rs. 6,414
million) is available to the Companys credit. Deferred tax asset in respect thereof has been
recognized as availability of sufficient taxable profits in future tax years to absorb such losses is
expected.
MAPLE LEAF CEMENT

2015
2014

Note

13.2 Movement in deferred tax balances is as follows:

2,208,403
1,904,860

Recognized in profit and loss account:

- accelerated tax depreciation on fixed assets
(166,695)
(343,774)
(105,991)
(188,229)
- unused tax losses
1,417,957
1,133,665
- liabilities against assets subject to finance lease
(35,999)
36,525
(652)
43
- provision for doubtful debts
1,334
106
- tax credits under section 113, 113C and 65B of Income Tax
Ordinance, 2001 against normal tax charge in future years
(597,190)
(330,301)
512,764

Recognized in surplus on revaluation of fixed assets

- tax rate adjustment
(40,682)

Recognized in other comprehensive income:

(6,713)

24,682

2,698,454
308,035
(4,492)
2,208,403
14. Retirement benefits

Accumulated compensated absences
14.1
41,138
34,421

Gratuity
14.2
68,550
45,233

109,688
79,654

14.1 Accumulated compensated absences

34,421
26,307

Provision for the year
15,184
17,543

Less: Payments made during the year
(8,467)
(9,429)

At end of the year
41,138
34,421

Annual Report 2015
139

14.2 Gratuity

The latest actuarial valuation of the Companys defined benefit plan, was conducted on 30 June 2015
using projected unit credit method. Detail of obligation for defined benefit plan is as follows:

2015
2014

Note
The amounts recognized in the balance sheet are as follows:

Present value of defined benefit obligation

Less: Fair value of plan assets
14.2.1
14.2.2
137,998
(69,448)
114,868
(69,635)
Net liability at end of the year

68,550
45,233

Net liability at beginning of the year
45,233
32,578

Charge to profit and loss account for the year
14.2.3
10,175
8,640

Charge to other comprehensive income for the year 14.2.3
22,638
16,323

Amount transferred to the Company
14.2.2
-
1,027

Less: Contributions made during the year
(9,496)
(13,335)

Net liability at end of the year
68,550
45,233

14.2.1 Movement in the present value of defined

benefit obligations is as follows:

Present value of defined benefit obligations at

beginning of the year
114,868
108,128

Current service cost for the year
4,809
4,594

Interest cost for the year
14,591
10,651

Actuarial losses on present value of defined

benefit obligations
13,226
4,866

Less: Benefits paid during the year
(9,496)
(13,371)
Present value of defined benefit obligation at end of the year
137,998
114,868

14.2.2 Movement in the fair value of plan assets is as follows:

Fair value of plan assets at beginning of the year
69,635
62,903

Contributions made during the year
9,496
13,335

Expected return on plan assets for the year
9,225
6,605

Actuarial (loss) / gain on plan assets
(9,412)
1,190

Less: Transferred to the Company
-
(1,027)

Less: Benefits paid during the year
(9,496)
(13,371)

Fair value of plan assets at end of the year
69,448
69,635
Fair value of plan assets are as follows:

NIB Bank including accrued interest

NAFA Government Securities Liquid Fund
Trust Investment Bank including accrued interest
Cash at bank
37,000
13,875
15,000
3,573

69,448

140
MAPLE LEAF CEMENT
35,630
10,072
21,935
1,998
69,635

2015
2014

(Percentage)
Plan assets comprise of:
Bond

Cash at bank
94.80%
5.20%
97.10%
2.90%
100%
100%

2015
2014


14.2.3 Charge for the year
In profit and loss account

Current service cost for the year

Interest cost for the year
Expected return on plan assets for the year
4,809
14,591
(9,225)
4,594
10,651
(6,605)

10,175
8,640
In other comprehensive income

Actuarial losses on retirement benefits - net
22,638
16,323

32,813
24,963

14.2.4 Movement in actuarial gain is as follows:

-
12,647

Actuarial loss / (gain) on plan assets
9,412
(1,190)

Actuarial loss on defined benefit obligation
13,226
4,866

Un recognized actuarial loss on defined benefit

obligation recognized in OCI
(22,638)
(16,323)

At end of the year
-

Actuarial assumptions

The following are the principal actuarial assumptions at 30 June:

2015
2014

(Percentage)

Discount rate used for year end obligations
9.75%
13.25%

Expected return on plan assets
9.75%
13.25%

Expected rate of growth per annum in future salaries
8.75%
12.25%

SLIC 2001 -
SLIC 2001
2005
2005

Expected mortality rate
Setback 1 Year Setback 1 Year

Retirement assumptions
60 years
60 years

Annual Report 2015
141
Historical Information

Comparison of present value of defined benefit obligation, the fair value of plan assets and the surplus
of gratuity fund for five years is as follows:
2015
2014
2013
2012
2011
----------------- (Rupees in thousand) -----------------

Present value of defined

benefit obligation
137,998 114,868
108,128
84,902
82,275

Fair value of plan assets
(69,448) (69,635)
(62,903) (52,099)
(50,914)

Deficit in the plan
68,550
45,233
45,225
32,803
31,361

Experience adjustment arising

on plan liabilities
13,226
4,866
15,306 (10,190)
(4,215)

Experience adjustment arising

on plan assets
(9,412)
1,190
6,858
2,932
2,529

14.3 The Company expects to charge Rs. 11.77 million to profit and loss account on account of defined
benefit plan in 2016.

14.4 Sensitivity analysis

If the significant actuarial assumptions used to estimate the defined benefit obligation at the
reporting date, had fluctuated by 100 bps with all other variables held constant, the present value
of the defined benefit obligation as at 30 June 2015 would have been as follows:

Gratuity
Impact on present value of

defined benefit obligation
Increase Decrease

Discount rate + 100 bps
130,508
146,271

Future salary increase + 100 bps
146,271
130,376

The sensitivity analysis of the defined benefit obligation to the significant actuarial assumptions
has been performed using the same calculation techniques as applied for calculation of defined
benefit obligation reported in the balance sheet.

14.5 At 30 June 2015, the weighted average duration of the defined benefit obligation was 6 years
(2014: 6 years).

142
MAPLE LEAF CEMENT

2015
2014

Note
15. Trade and other payables

Trade creditors
Bills payable - secured
15.1

Due to the Holding Company
15.3

Accrued liabilities
15.5

Advances from customers

Security deposits repayable on demand
15.2

Contractors retention money

Royalty and Excise Duty payable

Payable to Provident Fund Trust

Other taxes payable

Sales Tax payable

Excise Duty payable

Unclaimed dividend

Preference dividend payable

Payable to Workers Profit Participation Fund
15.4

Payable against redemption of preference shares

Other payables

998,898
1,170
-
754,320
182,349
49,958
24,815
29,002
5,804
47,165
386,416
189,039
4,876
1,019
468,894
1,560
18,588
3,163,873
590,566
621,824
251,570
459,065
222,041
55,348
8,709
28,848
4,796
58,311
426,964
233,315
1,529
1,023
304,437
1,580
35,772
3,305,698

15.1 These are secured against the securities as detailed in note 17.1 to these financial statements.

15.2 This represents security deposits received from distributors and contractors of the Company.
Distributors and contractors have given the Company a right to utilize deposits in ordinary course
of business.

15.3 This included amount due to the Holding Company, which carries interest at 1.00% (2014: 1.00%) in
addition to the average borrowing rate of the Company.

2015
2014


15.4 Payable to Workers Profit Participation Fund


Allocation and interest for the year
Less: Paid during the year
304,437
236,324
(71,867)
167,570
194,168
(57,301)
At end of the year

468,894
304,437

15.4.1 The outstanding WPPF liability includes Rs. 235.63 million being the left over amount out of the
total WPPF liability of Rs. 304.44 million pertaining to the financial year ended 30 June 2012 and
30 June 2013. According to the Companies Profits (Workers Participation) Act, 1968, the left
over amount is to be transferred to the Workers Welfare Fund. After the 18th amendment to the
Constitution of Pakistan in 2010, all labor / labor welfare laws have become provincial subject,
and accordingly the aforesaid left over amount is now payable to Provincial Government. Federal
Government through its letter dated 17-07-2012 demanded the payment of left over amount of
Workers Profit Participation Fund (WPPF). Both the permanent workers and the Workers of
the contractors filed separate Writ Petitions bearing No. 1716/2013 and 5039/2013 in the Honorable
Lahore High Court and challenged the legality of the said letter of the Government, the operation
of which was suspended by the Honorable High Court vide Order Dated 24 January 2013.

Annual Report 2015
143
In view of the above order the payment of left over amount should not be made to the Government
during the pendency of the said Writ Petitions as Federal Government is not competent to ask
for the payment of the Profit Fund. On the other hand, the Provincial Government has not so
far legislated any law after the 18th amendment in the Constitution of Pakistan to regulate the
payment of Profit Fund required to be deposited in the Welfare Fund created by the Government
through legislation, which it has a mandatory obligation to do and has failed to discharge its onus
so far. Therefore the Company stands handicapped to deposit the amount of Fund either to the
Federal Government or for that matter to the Provincial Government.

The left over amount of Profit Fund after distribution to the Workers stands retained by the
Company as a compulsion in view of the said Stay Order of the Honorable Lahore High Court.

15.5 This includes Rs. 140 million booked on account of Gas Infrastructure Development Cess (GIDC) for
the period from September 2014 to April 2015. The Company, along with various other companies
has challenged the legality and validity of levy and demand of GIDC in Honorable Lahore High
Court which is pending adjudication. However, on a prudent basis, the Company has recorded the
GIDC amount for the mentioned period.

2015
2014

16. Accrued profit / interest / mark-up

Profit / interest / mark-up accrued on:

- Long term loans
16,967
- Redeemable capital
23,672
- Syndicated term finances
4,381
- Liabilities against assets subject to finance lease
930
- Short term borrowings
62,182
21,123
55,826
11,263
8,383
78,030

108,132
174,625

17. Short term borrowings

Banking and financial institutions:

- Cash finance and others

- Running finance
Temporary bank overdrafts - unsecured
17.1
17.1
17.2
2,468,579
75,388
11,775
2,058,228
462,155
98,145

2,555,742
2,618,528

17.1 These facilities have been obtained from various banking companies for working capital requirements
and are secured by charge over current and future assets of the Company, personal guarantees of
the Directors, pledge of stock, lien over import documents and title of ownership of goods imported
under letters of credit. These facilities are expiring on various dates latest by 30 June 2016.

These facilities carry mark-up at the rates ranging from 5.75 % to 24.00 % (2014: 9.20% to 24.00%)
per annum payable quarterly.

The aggregate available short term funded facilities amounting to Rs. 2,971 million (2014: Rs. 3,635
million) out of which Rs. 1,407 million (2014: 1,115 million) remained unavailed at the year end.

Facilities available for opening letters of credit / guarantee aggregate amounting to Rs. 4,615
million (2014: Rs. 4,378 million) out of which the Rs. 2,388 million (2014: Rs. 2,208 million) remained
unutilized at the year end.

17.2 This represents temporary overdrafts due to cheques issued by the Company at the reporting date.

144
MAPLE LEAF CEMENT
18. Contingencies and commitments

18.1 Contingencies

18.1.1 The Company has filed writ petitions before the Honorable Lahore High Court against the
legality of judgment passed by the Customs, Excise and Sales Tax Appellate Tribunal whereby the
Company was held liable on account of wrongful adjustment of input sales tax on raw materials;
the amount involved pending adjudication before the Honorable Lahore High Court is Rs. 10.01
million. No provision has been made in these financial statements in respect of the matter as the
management and the Companys legal advisor are confident that the ultimate outcome of this
case will be in favor of the Company.

18.1.2 The Company has filed an appeal before the Customs, Central Excise and Sales Tax Appellate
Tribunal, Karachi against the order of the Deputy Collector Customs whereby the refund claim
of the Company amounting to Rs. 12.35 million was rejected and the Company was held liable to
pay an amount of Rs. 37.05 million by way of 10% customs duty allegedly leviable in terms of SRO
584(I)/95 and 585(I)/95 dated 01 July 1995. The impugned demand was raised by the department
on the alleged ground that the Company was not entitled to exemption from payment of customs
duty and sales tax in terms of SRO 279(I)/94 dated 02 April 1994.

The Honorable Lahore High Court, upon the Companys appeal, vide its order dated 06 November
2001 has decided the matter in favor of the Company; however, the Collector of Customs
has preferred a petition before the Honorable Supreme Court of Pakistan, which is pending
adjudication. No provision has been made in these financial statements in respect of the above
stated amount as the management and the Companys legal advisor are confident that the
ultimate outcome of this case will be in favor of the Company.

18.1.3 The Federal Board of Revenue (FBR) has filed an appeal before the Honorable Supreme Court
of Pakistan against the judgment delivered by the Honorable Lahore High Court in favor of the
Company in a writ petition. The Company, through the said writ petition, had challenged the
demand raised by the FBR for payment of duties and taxes on the plant and machinery imported
by the Company pursuant to the exemption granted in terms of SRO 484 (I) / 92 dated 14 May
1992. The FBR, however, alleged that the said plant & machinery could be locally manufactured
and duties and taxes were therefore not exempted. A total demand of Rs. 1,386.72 million was
raised by the FBR out of which an amount of Rs. 269.33 million was deposited by the Company as
undisputed liability. No provision has been made in these financial statements in respect of the
above stated amount as the management and the Companys legal advisor are confident that the
ultimate outcome of this case will be in favor of the Company.

18.1.4 The Customs Department has filed an appeal before the Honorable Supreme Court of Pakistan
against the judgment of Honorable Sindh High Court, which held that dump trucks were part of
plant and machinery and the Tribunal had rightly subjected them to concessionary rate of duty.
The Company had paid excess customs duties amounting to Rs. 7.35 million on these trucks. The
appeal is pending adjudication before the Honorable Supreme Court of Pakistan. No provision has
been made in these financial statements as the management and the Companys legal advisor are
confident that the ultimate outcome of this case will be in favor of the Company.

18.1.5 The Company has filed an appeal before the Honorable Supreme Court of Pakistan against the
judgment of the Division Bench of the Honorable High Court of Sindh at Karachi. The Division
Bench, by judgment dated 15 September 2008, has partly accepted the appeal by declaring that the
levy and collection of infrastructure cess / fee prior to 28 December 2006 was illegal and ultra vires
and after 28 December 2006, it was legal and the same was collected by the Excise Department
in accordance with the law. The appeal has been filed against the declaration that after 28
December 2006, the Excise Department has collected the infrastructure cess / fee in accordance
with law. The Province of Sindh and Excise and Taxation Department has also preferred an appeal
against the judgment decided against them. The Honorable Supreme Court consolidated both
Annual Report 2015
145
the appeals and were set aside. Thereafter, law has been challenged in constitution petition in
the Honorable Sindh High Court Karachi. Stay has been granted by the Honorable High Court on
31 May 2011 on payment of 50% of the cess to the Excise Department and on furnishing of bank
guarantee for remaining 50% to them. The petition is pending for hearing and stay is continuing.

The management and the Companys legal advisor are confident that the ultimate outcome of
this case will be in favor of the Company.

18.1.6 Competition Commission of Pakistan, vide order dated 27 August 2009, has imposed penalty on
twenty cement factories of Pakistan at the rate of 7.5% of the turnover value. The Commission
has imposed penalty amounting to Rs. 586.19 million on the Company. The Commission has
alleged that provisions of section 4(1) of the Competition Commission Ordinance, 2007 have
been violated. However, after the abeyance of Honorable Islamabad High Court pursuant to
the judgment of Honorable Supreme Court of Pakistan dated 31 July 2009, the titled petition
has become infructuous and the Company has filed a writ petition no. 15618/2009 before the
Honorable Lahore High Court. No provision has been made in these financial statements as the
management and the Companys legal advisor are confident that the ultimate outcome of this
case will be in favor of the Company.

18.1.7 The Additional Collector, Karachi has issued show cause notice alleging therein that the Company
has wrongly claimed the benefits of SRO No. 575(I)/2006 dated 05 June 2006 on the import of
pre-fabricated buildings structure. Consequently, the Company is liable to pay Government dues
amounting to Rs. 5.55 million. The Company has submitted reply to the show cause notice and
currently proceedings are pending before the Additional Collector. No provision has been made
in these financial statements as the management and the Companys legal advisor are confident
that the ultimate outcome of this case will be in favor of the Company.

18.1.8 The customs department has filed an appeal against the judgment dated 19 May 2009, passed in
favor of the Company pursuant to which the Company is not liable to pay custom duty amounting
to Rs. 0.59 million relating to import of some machinery vide L/C No. 0176-01-46-518-1201 in terms
of SRO 484(1)/92 dated 14 May 1992, and SRO 978(1)/95 dated 04 October 1995. The appeal is
pending before the Honorable Lahore High Court. No provision has been made in these financial
statements as the management and the Companys legal advisor are confident that the ultimate
outcome of this case will be in favor of the Company.

18.1.9 The Company has preferred an appeal against the order in original No. 576/99 dated 18 September
1999, whereby the Company was denied the benefit of SRO 484(1)/92 dated 14 May 1992, and
SRO 978(1)/95 dated 04 October 1995. Accordingly the demand of Rs. 0.81 million was raised
against the Company. Appeal was dismissed by Central Excise and Sales Tax Tribunal on 19 May
2009. The Company has filed petition before the Honorable Lahore High Court, which is pending
adjudication. A rectification application under section 194 is also pending before the Customs,
Federal Excise and Sales Tax Appellate Tribunal beside the customs reference. No provision has
been made in these financial statements as the management and the Companys legal advisor are
confident that the ultimate outcome of this case will be in favor of the Company.

18.1.10 Surcharge of Rs. 154 million has been imposed by Mines and Minerals Department, Government
of the Punjab under Rule 68(2) of Punjab Mining Concession Rules, 2002 (Rules) against which
the Company has filed writ petition against Government of Punjab via writ petition No. 1008/2014
to challenge the basis of Rules. The titled petition is currently pending before the Honorable
Lahore High Court. Management and the Companys legal advisor are confident that the ultimate
outcome of this case will be in favor of the Company.

146
MAPLE LEAF CEMENT
18.1.11 The Honorable Sindh High Court through its order dated March 01, 2013 declared the amendments
made in the WWF Ordinance, 1971 through Finance Act, 2008 applicable through which WWF is
applicable on accounting profits rather than on the taxable income computed after incorporating
the brought forward losses. In the light of the above order, the provision to date based on
accounting profit comes to Rs. 235.65 million (2014: Rs. 145.63 million). However, these financial
statements does not include any adjustment to this effect since the Company is of the opinion
that it does not come under the purview of the order of the Honorable Sindh High Court and that
the Honorable Lahore High Court had already declared the above amendments unconstitutional
via the case reported as 2011 PLD 2643.

18.1.12 Guarantees given by banks on behalf of the Company are of Rs. 412.75 million (2014: Rs. 399.71
million) in favor of Sui Northern Gas Pipeline Limited and Government Institutions.

18.1.13 Contingencies relating to tax matters are disclosed in note 32 to these financial statements.

2015
2014

Note

18.2 Commitments

18.2.1 in respect of:

- capital expenditure
11,373
2,559

- irrevocable letters of credit for spare parts
811,809
208,761

823,182
211,320
19. Property, plant and equipment

Operating fixed assets

Capital work-in-progress - at cost
19.1
19.6
23,604,525
116,016
24,661,336
44,446

23,720,541
24,705,782

Movement in capital work-in-progress - at cost

44,446
87,652

Additions during the year
288,200
161,870

Less: Transfers during the year
19.2
(216,630)
(205,076)

At end of the year
19.6
116,016

44,446
Annual Report 2015
147
148
MAPLE LEAF CEMENT
Operating fixed assets
Cost / Revalued amount
Depreciation
49,634
49,634
Intangible assets
2015
-
-
33
49,634
49,634
49,634
49,634
49,634
49,634

959,676
2,852
- (280,000)
- 682,528
277,843
925
24,147 (81,065)
- 221,850 460,678

2015 38,157,190 154,545
715,114
- (228,458) 38,798,391

13,495,854
59,532 1,772,554
- (134,074) 15,193,866 23,604,525

37,197,514 151,693
715,114 280,000 (228,458) 38,115,863
13,218,011
58,607 1,748,407
81,065 (134,074) 14,972,016 23,143,847
Leased
Plant and machinery
- cost
959,676
-
- (280,000)
- 679,676
5
277,843
-
24,145 (81,065)
- 220,923
458,753
- surplus on revaluation
-
2,852
-
-
-
2,852
5
-
925
2
-
-
927
1,925

31,368,096 112,266 466,063 280,000 (173,374) 32,053,051
11,057,695
43,963 1,499,210
81,065 (97,038) 12,584,895 19,468,156

Furnitures, fixtures and equipment
251,258
- 61,982
- (8,952)
304,288 10 - 30
150,404
-
19,214
- (6,757)
162,861
141,427
Quarry equipment
197,795
-
-
-
- 197,795 20
167,356
-
6,088
-
- 173,444
24,351
Vehicles
126,339
- 59,247
- (14,495)
171,091 20
70,531
-
16,615
- (11,790)
75,356
95,735
Share of joint assets (note 19.3)
6,000
-
-
-
-
6,000 10
4,430
-
157
-
-
4,587
1,413

97,221
762
1,454
-
-
99,437
70,457
564
2,662
-
- 73,683
25,754
Plant and machinery
- cost
24,154,093
- 466,063 280,000 (159,671) 24,740,485 5 - 20 9,855,355
- 1,163,779
81,065 (92,273) 11,007,926 13,732,559
7,214,003 112,266
-
- (13,703) 7,312,566 5 - 20 1,202,340
43,963
335,431
- (4,765) 1,576,969 5,735,597

4,723,280 36,094 126,368
- (31,637) 4,854,105
1,697,138
14,080 204,461
- (18,489) 1,897,190 2,956,915
Roads, bridges and railway sidings
- cost
94,129
-
1,454
-
-
95,583 5 - 10
69,518
-
2,450
-
-
71,968
23,615
3,092
762
-
-
-
3,854 5 - 10
939
564
212
-
-
1,715
2,139

427,525
2,571
-
-
- 430,096
-
-
-
-
-
- 430,096
Buildings on freehold land
- cost
4,455,087
- 126,368
- (30,714) 4,550,741 5 - 10 1,652,560
- 192,337
- (18,296) 1,826,601 2,724,140
268,193 36,094
-
-
(923)
303,364 5 - 10
44,578
14,080
12,124
-
(193)
70,589
232,775

Adjustment
Adjustment
Net book
At
At At
At

due to
due to
For the
value at
01 July revaluation Additions Transfers Disposals 30 June
01 July revaluation year Transfers Disposals 30 June
Rate

30 June
2014
2015

surplus
2014 surplus 2015 2015

------------------------------- Rupees in thousand -------------------------------
Percentage --------------------------------------- Rupees in thousand ---------------------------------------

Owned
Freehold land
- cost
56,810
-
-
-
-
56,810
-
-
-
-
-
-
-
56,810
370,715
2,571
-
-
- 373,286
-
-
-
-
-
-
- 373,286
19.1

Annual Report 2015
149
Cost
Depreciation
24,611
2,153
3,026,142
2,802,527
223,615
427,525
191,652
226,905
123,851
6,000
30,704,758
59,666
1,879
13,140
-
663,338
-
-
(60)
(30,989)
(10,652)
-
251,258 10 - 30
197,795 20
126,339 20
6,000 10
- 31,368,096
136,021
190,396
67,542
4,255
9,641,172
14,389
7,480
11,698
175
1,416,523
(6)
(30,520)
(8,709)
-
150,404
167,356
70,531
4,430
- 11,057,695
100,854
30,439
55,808
1,570
20,310,401
49,634
49,634
49,634
49,634
19.2 Additions in operating fixed assets include transfers from capital work-in-progress amounting to Rs. 216.63 million (2014: Rs. 205.08 million).

19.3 Ownership of the housing colonys assets included in the operating fixed assets is shared by the Company jointly with Agritech Limited in ratio of 101:245 since the time when both the
companies were managed by Pakistan Industrial Development Corporation. These assets are in possession of the housing colony establishment for mutual benefits.
2014
2014
37,388,539
811,962
-
(43,311)
38,157,190
11,845,986
1,690,247
-
(40,379) 13,495,854 24,661,336

Intangible assets
49,634
-
-
-
49,634 33
49,634
-
-
-
49,634
-

36,428,863
811,962
-
(43,311)
37,197,514
11,604,028
1,654,362
-
(40,379)
13,218,011 23,979,503
Leased
Plant and machinery
959,676
-
-
-
959,676 5
241,958
35,885
-
-
277,843
681,833
Furnitures, fixtures and equipment

Quarry equipment
Vehicles
Share of joint assets (note 19.3)

96,221
1,000
-
-
97,221
67,614
2,843
-
-
70,457
26,764
Plant and machinery
- cost
23,490,755
663,338
-
- 24,154,093 5 - 20 8,774,588
1,080,767
-
- 9,855,355 14,298,738
7,214,003
-
-
- 7,214,003 5 - 20
866,584
335,756
-
-
1,202,340
6,011,663

4,655,051
69,839
-
(1,610)
4,723,280
1,497,028
201,254
-
(1,144)
1,697,138
Roads, bridges and railway sidings
- cost
93,129
1,000
-
-
94,129 5 - 10
66,910
2,608
-
-
69,518
3,092
-
-
-
3,092 5 - 10
704
235
-
-
939

424,425
3,100
-
-
427,525
-
-
-
-
-
- cost
4,386,594
69,839
-
(1,346)
4,455,087 5 - 10 1,464,744
188,921
-
(1,105)
1,652,560
268,457
-
-
(264)
268,193 5 - 10
32,284
12,333
-
(39)
44,578

Net book
As at
As at As at For the
As at

value as at
01 July
30 June
Transfers Disposals
01 July year
30 June
Rate

Additions Transfers Disposals
30 June
2013
2014 2013
2014

2014

------------------------------- Rupees in thousand -------------------------------
Percentage --------------------------------------- Rupees in thousand --------------------------------------Owned
Freehold land
- cost
53,710
3,100
-
-
56,810 -
-
-
-
-
-
56,810
370,715
-
-
-
370,715 -
-
-
-
-
-
370,715
19.4 Depreciation charge for the year has been allocated as follows:

Note

Cost of goods sold
35

37
1,743,560
28,994
1,664,883
25,364
1,772,554
1,690,247
2015
2014
19.5 Disposal of Property, plant and equipment

Net
Particulars
Cost Accumulated Book
Sale Gain
Mode of Particulars of
Depreciation Value
Value / (Loss) Disposal Purchaser

(------------------ Rupees in thousand ------------------)
Plant and machinery
Transformer 500 KVA

Blockage clearing system and
top element
Cement mill
Magnesite majkor - B
Rotary blower
Bearings
Normal element part
Outlet and inlet sector
Cooler
Movable and stationary cross bar
SO2 analyzer
Grate protection plate, electric hilti
machine, spreader plate, welding
plant, low energy grate, centrifugal
pump and gear wheel part
Grizzly bar
U-Profile
1,149
757
392
19,360
87,818
8,355
2,369
9,573
9,486
6,812
5,134
5,511
3,698
8,145
61,629
4,114
330
1,990
5,052
2,826
1,155
2,858
1,043
11,215
26,189
4,241
2,039
7,583
4,434
3,986
3,979
2,653
2,655
10,539
2,361
1,207
5,246
1,261
632
5,293
1,100
575
350
(42)
Auction
S.N International Lahore
8,476 (2,739)
Auction S.N International Lahore
11,434 (14,755)
3,735
(506)
2,822
783 Insurance Claim EFU General Insurance Ltd.
5,868
(1,715) Insurance Claim EFU General Insurance Ltd
3,431 (1,003) Insurance Claim EFU General Insurance Ltd.
3,084
(902) Insurance Claim EFU General Insurance Ltd.
3,079
2,052
2,054
4,095
851
445
(1,198) Insurance Claim EFU General Insurance Ltd.


173,372
97,038 76,334
51,776 (24,558)
Vehicles
Suzuki Cultus
599
473
126
602
476
Auction Mr. Ahmad Hassan
Suzuki Cultus
568
464
104
532
428
Auction Mr. Zafar Iqbal
Suzuki Cultus
570
503
67
450
383
Auction Mr. Muhammad Akbar
Suzuki Cultus
578
471
107
591
484
Auction Mr. Muhammad Arshad
Suzuki Cultus
641
508
133
471
338
Auction Mr. Shah Jehan
Suzuki Cultus
787
528
259
721
462
Auction Mr. Fazal Dad
Suzuki Cultus
787
528
259
753
494
Auction Mr. Shah Jehan
Suzuki Cultus
419
283
136
479
343
Auction Syed Rahbar Abbas Zadi
Suzuki Cultus
576
553
23
360
337
Auction S.N.International Lahore
Toyota Corolla
1,111
982
129
762
633
Auction Mr. Hassan Ali Mansoor
Toyota Jeep
1,590
1,574
16
800
784
Auction Malik Kaleem Ullah Hafeez
Mitsubishi Pajero
4,220
3,672
548
2,200
1,652
Auction Ms. Maqbool Babi
Honda Civic
1,953
1,156
797
903
106 Negotiation Ms. Fozia Aisha Gulzar
Yamaha Motor Bike
58
57
1
6
5
Auction Mr. Mehr Khan

39
38
1
8
7
Auction Mr. Shakeel Rehmat Malik

14,496
11,790
2,706
9,638
6,932
Drawing office stores and Tpt shop
255
211
44
162
118
Auction Mr. Aftab Yousaf
Cement mill
30,347
17,828
12,519
5,466 (7,053)
Blower room
238
133
105
144
Six Rooms in bachelor hostel
797
318
479
500

31,637
18,490
13,147
6,272 (6,875)
Furniture, fixtures and equipment
Geyzer
172
135
37
55
18
Office chairs and tables
54
39
15
19
4
Refrigerator - dawlance model 9155
17
14
3
8
5
Auction Mr. Noor Muhammad
Chairs, beds, table and sofa set
5,517
3,856
1,661
1,208
(453)
Air conditioner
687
560
127
92
(35)
Burners, oven and cooking range
730
608
122
88
(34)
Room cooler and heaters
757
616
141
103
(38)
Ceiling fans
54
43
11
8
(3)
IT equipment
965
885
80
1,000

8,953
6,756
2,197
2,581
384

2015
228,458
134,074 94,384
70,267 (24,117)

2014
150
MAPLE LEAF CEMENT
43,311
40,379
2,932
12,696
9,764

Note
2015
2014

19.6 Capital work-in-progress - at cost

Plant and machinery
100,050
33,856

Expenditure
1,001
1,001

Advance to suppliers against:

- purchase of land
2,000
2,000

- plant and machinery
9,788
2,310

- vehicles
3,177
5,279

116,016

44,446
20. Long term investment

Loans and receivables

20.1
1,625
1,625

Less: Redemption of investment during the year
(1,625)

-
1,625

20.1 This represented investment in fixed deposit scheme of Bank Islami Pakistan Limited maturing on
23 February 2017 and carried profits at rates ranging from 7.25% to 9.27% (2014: 5.28% to 9.25%) per
annum. It is redeemed during the year.

2015
2014

Note
21. Long term loans to employees - secured

House building
Vehicles
Others

Less: Current portion presented under current assets
26
3,677
2,628
4,096
3,427
2,195
1,620
10,401
(3,888)
7,242
(2,802)

6,513
4,440

21.1 These loans are secured against employees retirement benefits and carry interest at the rates
ranging from 6% to 12% per annum (30 June 2014: 6% to 12 % per annum). These loans are recoverable
in 30 to 120 monthly installments.

21.2 No amount was due from Directors and Chief Executive and Executives during the year and at the
year end (2014: Rs. nil).

Annual Report 2015
151
22. Long term deposits

This includes deposits with various utility companies, regulatory authorities and others.

Note
23. Stores, spare parts and loose tools

Stores
23.1
Spare parts
Loose tools

Less: Provision for slow-moving / obsolete items
23.2
2015
2014
1,989,962
2,162,443
43,309
1,856,401
1,925,692
31,743
4,195,714
-
3,813,836
(41,033)

4,195,714
3,772,803

23.1 Stores include items in transit amounting to Rs. 721.31 million (2014: Rs. 851.93 million).

2015
2014

Note

23.2 Provision for slow-moving / obsolete items

41,033
41,033

Provision reversed during the year
(41,033)

At end of the year
-
41,033
24. Stock-in-trade

Raw material
Packing material
Work-in-process
Finished goods
38,975
141,816
697,357
397,110
56,085
113,354
697,455
324,038

Less: Cement stock written off
1,275,258
(68,685)
1,190,932
(39,472)

1,206,573

25. Trade debts

Considered good
Export - secured
25.1
Local - unsecured
67,655
502,916
76,993
762,044
570,571
839,037
Local - unsecured
3,423
8,580
573,994
847,617
(3,423)
(8,580)

Considered doubtful
Less: Provision for doubtful trade debts
25.2

570,571

152
1,151,460
MAPLE LEAF CEMENT
839,037

2015
2014

Note

25.1 These are secured through bank by letters of credit.

25.2 Movement in provision for doubtful trade debts

8,580
7,987

Provision for the year
22,557
5,059

Less: Provision written off
(27,714)
(4,466)

At end of the year
3,423
8,580

26. Loans and advances

Advances - unsecured, considered good
- Employees
- Suppliers
26.1
26.2

Current portion of long term loans to employees
21
19,897
950,297
7,875
896,832
970,194
3,888
904,707
2,802

974,082
907,509

26.1 Directors, Chief Executive and Executives have not received any advances from the Company
during the year end (2014: nil).

26.2 This includes an amount of Rs. 698.54 million (2014: Rs. 642.07 million) advanced to Ministry of
Railways for transportation of coal and cement.

Note
27. Short term investment

Investment at fair value through profit or loss - listed securities
Next Capital Limited:

1,500,000 (2014: 1,500,000) ordinary shares of Rs. 10 each
Market value Rs. 7.02 per share (2014: Rs. 4.52 per share)
Cost
At beginning and end of the year
Unrealized fair value loss

Fair value (gain) / loss for the year
38 & 39
At end of the year
2015
2014
15,000
15,000
8,220
(3,750)
7,650
570
4,470
8,220

Fair value at 30 June
10,530

6,780
Annual Report 2015
153

28. Short term deposits and prepayments

2015
2014
Margin against:

- letters of credit
6,891
3,082
- bank guarantees
59,104
58,014
Prepayments
21,852
11,705
Security deposits
1,122
879
88,969
73,680
29. Accrued profit

This represents profit accrued on deposits and PLS bank accounts at the rates ranging from 3.92% to
5.87% (2014: 5.00% to 7.29%) per annum.

Note
30. Refunds due from government
2015
2014

Sales tax and customs duty
30.1
16,797
16,797

30.1 This represents amount paid to Government under protest for various cases which have been
decided in favor of the Company.

Note
31. Other receivables
2015
2014
26,730
103,876
97,969
130,606
97,969
Due from the Holding Company - unsecured

31.1
Others
154
31.1
This includes amount due from Holding Company, which carries interest at 1% (2014: 1%) in addition
to the average borrowing rate of the Company.
MAPLE LEAF CEMENT
2015
2014
32. (provision) / Advance tax - net

(137,252)
70,214

32.1 The deemed assessment earlier made under section 120(1) of the Ordinance has been rectified
through order dated 10 May 2011 passed u/s 221 of the Ordinance on the grounds that minimum
tax liability payable u/s 113 of the Ordinance of Rs. 34.60 million for the tax year 2010 was leviable
in addition to taxes payable under various final tax regimes. The Company has contested the
rectification order in appeal before the ATIR, which has been disposed through appellate order
dated 09 July 2014 in favour of the Company. The appeal order has not yet been issued by the
department in this respect.

32.2 The deemed assessment earlier made under section 120(1) of the Ordinance has been rectified
through order dated 02 February 2011 passed u/s 221 of the Ordinance on the grounds that minimum
tax liability payable u/s 113 of the Ordinance of Rs. 35.69 million was also leviable in addition to
taxes payable under various final tax regimes. The Company has contested the rectification order
in appeal before the ATIR, which has not been taken up for hearing to date.

32.3 Through ONO No.18/2009 dated 24 December 2009, the tax department finalized the adjudication
proceeding in respect of audit conducted by the department auditors and raised a demand of
principal sales tax and FED aggregating to Rs. 336.74 million along with applicable default
surcharges and penalties. The Company preferred appeal against such ONO under the applicable
provisions of Sales Tax Act, 1990 and Federal Excise Act, 2005 before the Commissioner of Inland
Revenue (appeals).

It is, however, appropriate to highlight that the Company has also filed a writ petition with the
Honorable Lahore High Court against the above referred Order-In-Original demand.

32.4 Through Order-In-Original No. 10/2011 dated 30 July 2011, Companys refund claim of Central Excise
Duty (CED) of Rs. 913.01 million representing the excess payment of duty based on an inadvertent
computation of related retail price of cement products manufactured and supplied by the
Company, was rejected principally on the grounds that related incidence of duty has been passed
on to the consumers and hence the resultant refund claim is hit by the mischief of provisions of
then applicable section 3(d) of the Central Excise Act, 1944.

The preferred appeal against the said order before the CIR(A) both on legal as well as factual
grounds, however, such appeal was not entertained by the Commissioner of Inland Revenue
(Appeals) and accordingly, the matter has been further agitated in appeal by the Company before
the Appellate Tribunal Inland Revenue (ATIR).

32.5 The Company filed an appeal before Commissioner Inland Revenue (appeals) against the
impugned order passed by Additional Commissioner Inland Revenue under section 122(5A) of the
Income Tax Ordinance,2001 for tax year-2009, creating a demand of Rs. 1.17 million. The appeal of
said hearing is pending before CIR (appeal). The Company is confident about favorable outcome
of the case.

32.6 The Company filed an appeal before Commissioner Inland Revenue (appeals) against the
impugned order passed by Additional Commissioner Inland Revenue under section 122(5A) of the
Income Tax Ordinance, 2001 for tax year-2010, creating a refund of Rs. 0.60 million. The appeal of
said hearing is pending before CIR (appeal). The Company is confident about favorable outcome
of the case.

Annual Report 2015
155
32.7 The Company filed an appeal before Commissioner Inland Revenue (appeals) against the impugned
order passed by Additional Commissioner Inland Revenue under section 122(5A) of the Income Tax
Ordinance, 2001 for tax year 2014, creating a demand of Rs. 16.25 million. The appeal of said hearing
is pending before CIR (appeal). The Company is confident about favourable outcome of the case.

Based on opinion of the Companys legal counsel, management is confident of favorable outcome in
all aforementioned matters, hence no provision is being recognized in respect of these matters in the
financial statements.

32.8 Tax losses available for carry forward as at 30 June 2015 aggregated to Rs. 2,207 million (2014: Rs.
6,414 million).

2015
2014

Note
33. Cash and Bank Balances

- Cash in hand
2,290
2,996
Cash at bank:
Current accounts:
- foreign currency
- local currency
9,838
116,307
7,480
97,844
126,145
105,324
115,965
98,524
242,110
203,848
244,400
206,844
Deposit accounts
33.1
33.1 These carry return at 3.92% to 5.87% (2014: 5.00% to 7.29%) per annum.

34. Sales - net

Gross local sales
21,850,423
20,039,019
Less:
Federal Excise Duty
(935,201)
Sales Tax
(3,590,939)
Commission
(147,147)
(838,618)
(3,324,741)
(131,678)
(4,673,287)
(4,295,037)
Net local sales

Export sales
17,177,136
3,542,918
15,743,982
3,224,565
20,720,054
18,968,547
156
2015
2014
MAPLE LEAF CEMENT

2015
2014

Note
35. Cost of goods sold

Raw materials consumed
35.1
789,966
665,986

Packing materials consumed
1,352,557
1,155,577

Fuel
4,329,330
4,673,623

Power
2,780,386
2,662,366

Stores, spare parts and loose tools consumed
1,026,194
795,578

Salaries, wages and other benefits
35.2
561,940
486,279

Rent, rates and taxes
27,163
31,121

Insurance
55,964
54,516

Repairs and maintenance
381,607
189,905

Depreciation
19.4
1,743,560
1,664,883

Vehicles running and maintenance
83,882
95,418

Cement stock written off
68,685
39,472

Other expenses
35.3
135,643
141,925

13,336,877
12,656,649

Work in process:
697,455
488,437

At end of the year
(697,357)
(697,455)

98
(209,018)
13,336,975
12,447,631
Cost of goods manufactured
Finished goods:
284,566
321,969
At end of the year
(397,110)
(324,038)
(112,544)

Cost of goods sold
13,224,431

35.1 Raw materials consumed

(2,069)
12,445,562

Add: Purchases made during the year
56,085
772,856
14,519
707,552

Less: At end of the year
828,941
38,975
722,071
56,085

789,966
665,986

35.2 Salaries, wages and other benefits expense includes contribution to Provident Fund Trust
amounting to Rs. 20.46 million (2014: Rs. 16.05 million) and gratuity and compensated absence
amounting to Rs. 18.62 million (2014: Rs. 17.25 million).

35.3 Other expenses include housing colony expenses aggregating to Rs. 70.51 million (2014: Rs. 83.08
million).

Annual Report 2015
157

Note
36. Distribution cost


36.1
Travelling and conveyance
Vehicle running and maintenance
Postage, telephone and fax
Printing, stationery and office supplies
Entertainment
Repair and maintenance
Advertisement and sampling
Freight and forwarding
Other expenses
2015
2014
77,217
55,880
11,607
7,969
1,940
4,145
3,140
59,776
1,076,787
15,235
63,244
27,591
13,110
4,424
4,342
7,607
1,301
39,364
863,458
29,895

1,313,696
1,054,336


2015
2014

Note
37. Administrative expenses

37.1

Travelling

Vehicle running and maintenance

Postage, telephone and fax

Printing, stationery and office supplies

Entertainment

Repair and maintenance

Legal and professional charges
37.2

Depreciation
19.4

Rent, rates and taxes

Provision for doubtful debts
Bad debts written off

Other expenses
133,038
29,830
19,759
12,056
15,578
18,016
14,353
24,826
28,994
998
-
27,714
56,201
109,519
22,879
17,828
9,103
12,862
19,841
15,738
11,640
25,364
1,522
593
4,466
45,334

381,363
296,689


158
MAPLE LEAF CEMENT
37.2 Legal and professional charges include following in respect of Auditors remuneration for:
Annual statutory audit

Interim audit and other certification
Out of pocket expenses
2015
2014
1,200
350
200

1,750

1,200
350
150
1,700
37.3 The Company has shared expenses aggregating to Rs. 16.98 million (2014: Rs. 12.70 million) on
account of combined offices with the Holding Company. These expenses have been recorded in
respective account.

2015
2014

Note
38. Other charges

Donations
38.1
Workers Profit Participation Fund (WPPF)
Loss on disposal of property, plant and equipment
Unrealized loss on re-measurement of short term investment 27
2,746
236,324
24,117
-
2,634
194,168
570
263,187
197,372

38.1 Donations for the year have been given to:

Pakistan Air Force (PAF) Mianwali
1,403

Miscellaneous donations in the form of cement
910
1,711

Lahore University of Management Sciences (LUMS)
100

Internally Displaced Persons (IDP), Swat
-
600

National Tennis Academy
333
323

2,746

38.1.1 None of the Directors of the Company or their spouse have any interest in donees.

2,634
Annual Report 2015
159

Note
39. Other income

Income from financial assets
Profit on bank deposits

Unrealized gain on re-measurement of short term investment 27
Reversal of provision for doubtful debts
Profit on long term investment
2015
2014
14,459
3,750
5,157
324
13,850
141

Income from non-financial assets
23,690
13,991
19,226
-
3,257
52,637
9,764
4,193
22,483
66,594
46,173
80,585
60,199
521,232
97,548
16,561
288,001
93,096
735,036
138,481
29,702
354,759
983,541
1,351,074

Exchange loss - net

Realised loss on derivative cross currency interest

rate swap agreement
Bank and other charges
47,564
70,579
-
51,534
3,292
39,827
1,082,639
Sale of scrap
Gain on disposal of property, plant and equipment
Miscellaneous
40. Finance cost

Profit / interest / mark up on:

- Long term loans and finances
- Redeemable capital
- Syndicated term finances
- Liabilities against assets subject to finance lease
- Short term borrowings
40.1
1,464,772
40.1 This includes interest expense amounting to Rs. 0.29 million (2014: Rs. 4.71 million) on amount due
to the Holding Company.

2015
2014

41. Taxation

160
Income Tax
- current
593,464
- prior
(59,612)
492,444
(40,252)

Deferred
533,852
512,764
452,192
308,035
1,046,616
760,227
MAPLE LEAF CEMENT

2015
2014


41.1 Tax charge reconciliation

Numerical reconciliation between tax expense and accounting profit:

4,500,911
3,590,401

Applicable tax rate as per Income Tax Ordinance, 2001
33%
34%
Tax on accounting profit

Effect of final tax regime
Change in proportion of local and export sales
Tax rate adjustment
Effect of prior year adjustment
1,485,301
(275,876)
339,410
(305,015)
(197,204)
1,220,736
(134,856)
(296,706)
(4,407)
(24,540)
1,046,616
760,227
41.2 The Finance Act, 2015 introduced a new tax under Section 5A of the Income Tax Ordinance, 2001
on every public company other than a scheduled bank or modaraba, that derives profits for
tax year and does not distribute cash dividend within six months of the end of said tax year or
distribute dividends to such an extent that its reserves, after such distribution, are in excess of
100% of its paid up capital. However, this tax on undistributed reserves is not applicable to a public
company which distributes profit equal to either 40 percent of its after tax profits or 50% of its
paid up capital, whichever is less, within six months of the end of the tax year.

As explained in note 53 to the financial statements, the Board of Directors in their meeting held on
September 09, 2015 has recommended sufficient cash dividend for the year ended 30 June 2015 which
complies with the above stated requirements. Accordingly, no provision for tax on undistributed
reserves has been recognized in these financial statements for the year ended 30 June 2015.

42. Earnings per share - basic and diluted

Unit
2015
2014

42.1 Basic earnings per share

Profit after taxation
Rupees in 000
3,454,295
2,830,174

Weighted average number of

ordinary shares
No. of shares in 000
527,734
527,734

Rupees
6.55
5.36

There is no dilution effect on the basic earnings per share.

2015
2014

Note
43. Cash and cash equivalents

Short term running finance

Cash and bank
17
33
(75,388)
244,400

169,012

(462,155)
206,844
(255,311)
Annual Report 2015
161
44. Transactions and balances with related parties

Related parties comprise of the Holding Company, associated companies, directors, key management
personnel, employee benefits fund and other companies where directors have significant influence.
Details of transactions and balances with related parties are as follows:
2015
2014
Holding company (Kohinoor Textile Mills Limited)

Sale of goods and services

Sale of Property, plant and equipment
Balance at the year end - receivable / (payable)
28,579
-
26,730
2,336
176
(251,570)
Key management personnel

Remuneration and other benefits
198,793
133,258

Post employment benefit plans

Contributions to Provident Fund Trust
(67,721)
(51,072)

Payments to Employees Gratuity Fund Trust
(9,496)
(13,335)
Balance of Employees Gratuity Fund Trust
68,550
45,233

45. Remuneration of Chairman, Chief Executive, Directors,

Non-executive Directors and Executives

The aggregate amounts charged in the financial statements for the year for remuneration, including all
benefits to the Chairman, Chief Executive, Directors and Executives of the Company are as follows:

2015

Directors

Chief
Chairman
Executive Non-Executive Executives

Executive

(------------------------------- Rupees in thousand ------------------------------ )
Short term benefits

Managerial remuneration
7,776
9,360
5,202
-
98,340
House rent
1,152
480
385
-
34,346
Medical
-
-
82
-
2,640
Conveyance
-
1,152
467
-
17,333
Utilities
672
120
193
-
8,660

9,600
11,112
6,329
-
161,319

Post employment benefits

Contribution to Provident

Fund Trust
643
852
385
-
8,553

10,243
11,964
6,714
-
169,872

Numbers
1
1
1
5
97

162
MAPLE LEAF CEMENT
2014
Directors

Chief
Chairman
Executive Non-Executive Executives

Executive

(----------------------------- Rupees in thousand -------------------------- )

Short term benefits

Managerial remuneration
5,832
7,090
3,862
-
61,685
House rent
864
364
286
-
21,967
Medical
-
636
104
-
1,311
Conveyance
-
1,478
515
-
14,842
Utilities
504
91
143
-
5,314

7,200
9,659
4,910
-
105,119

Post employment benefits

Contribution to Provident

Fund Trust
-
645
286
-
5,440

7,200
10,304
5,196
-
110,559

Numbers
1
1
1
5
62

45.1 The Chairman, Chief Executive, Directors and some of the Executives are also provided with the
Company maintained cars in accordance with their terms of employment.

45.2 Aggregate amount charged in these financial statements in respect of Directors fees
aggregated Rs. 0.17 million (2014: Rs. 0.24 million).
46. CAPACITY AND PRODUCTION

Capacity
Actual Production

2015
2014 2015 2014

- ----------------------------- Metric tons ---------------------------

Clinker
3,360,000
3,360,000
2,824,854
2,694,848

Lower capacity utilization of cement plant is due to gap between demand and supply of cement. The
capacity of plant has been determined on the basis of 300 days.
Annual Report 2015
163
47. Operating segment

Information about operating segment

These financial statements have been prepared on the basis of single reportable segment.

Geographical information

The Company operates in two principal geographical areas, Asia and Africa other than Pakistan
and revenue from continuing operations from external customers based on geographical areas is
as follows:

2015
2014

(Percentage)
Geographical area

Asia
96.56%
96.54%

Africa
3.44%
3.46%

100.00%

All assets of the Company as at 30 June 2015 are located in Pakistan.

48. Financial risk management

164
100.00%
The Company has exposure to the following risks arising from financial instruments:
- credit risk
- liquidity risk
- market risk
This note presents information about the Companys exposure to each of the above risks, the Companys
objectives, policies and processes for measuring and managing risk, and the Companys management of
capital.
Risk management framework
The Companys Board of Directors has overall responsibility for establishment and oversight of the
Companys risk management framework. The Board is responsible for developing and monitoring the
Companys risk management policies.
The Companys risk management policies are established to identify and analyze the risks faced by
the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Companys activities. The Company, through its training and management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees
understand their roles and obligations. All derivative activities for risk management purposes are carried
out by specialist teams that have the appropriate skills, experience and supervision. It is the Companys
policy that no trading in derivatives for speculative purposes shall be undertaken. The Board of Directors
reviews and agrees policies for managing each of these risks.
MAPLE LEAF CEMENT
The Companys audit committee oversees how management monitors compliance with the Companys
risk management policies and procedures and reviews the adequacy of the risk management framework
in relation to the risks faced by the Company. Audit committee is assisted in its oversight role by internal
audit department. Internal audit department undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.

48.1 Credit risk and concentration of credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. To manage credit risk the Company maintains
procedures covering the application for credit approvals, granting and renewal of counterparty
limits and monitoring of exposures against these limits. As part of these processes the financial
viability of all counterparties is regularly monitored and assessed.

48.1.1 Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk as at the end of the reporting period was as follows:

2015
2014

Held to maturity

-

Financial asset at fair value through profit and loss account
1,625
10,530
6,780

Security deposits

Trade debts

Long term loans to employees

Short term deposits

Accrued profit

Other receivables
Bank balances
55,058
570,571
10,401
60,226
963
13,022
242,110
54,013
839,037
7,242
58,893
2,352
12,506
203,848
952,351
1,177,891
Short term investment
Loans and receivables

962,881
1,186,296

48.1.2 Concentration of credit risk

The Company identifies concentrations of credit risk by reference to type of counter party.
Maximum exposure to credit risk by type of counterparty is as follows:

2015
2014


Customers
570,571
839,037
Banking companies and financial institutions
301,214
261,862

Others
91,096
85,397

962,881

1,186,296
Annual Report 2015
165

48.1.3 Credit quality and impairment

Credit quality of financial assets is assessed by reference to external credit ratings, where
available, or to historical information about counterparty default rates. All counterparties, with
the exception of customers, have external credit ratings determined by various credit rating
agencies. Credit quality of customers is assessed by reference to historical defaults rates and
present ages.

48.1.3(a) Counterparties with external credit ratings

These include banking companies and financial institutions. These counterparties have reasonably
high credit ratings as determined by various credit rating agencies. Due to long standing
business relationships with these counterparties and considering their strong financial standing,
management does not expect non-performance by these counterparties on their obligations to
the Company. Following are the credit ratings of counterparties with external credit ratings:

Rating
2015
2014

Short term Long term
Agency

Banks

Bank balances

Allied Bank Limited
A1+
AA+
PACRA
5,293
1,791

Askari Bank Limited
A1+
AA
JCR-VIS
5
Bank Al-Habib Limited
A1+
AA+
PACRA
77,991
38,674
Bank Alfalah
A1+
AA
PACRA
10,583
3,022
Bank Islami Pakistan Limited
A1
A+
PACRA
72,741
55,900
Bank of Punjab
A1+
AA-
PACRA
513
Burj Bank Limited
A-2
A-
JCR-VIS
9
9

Dubai Islamic Bank Pakistan Limited
A-1
A+
JCR-VIS
741
741

Faysal Bank Limited
A1+
AA
PACRA
764
1,235

Habib Bank Limited
A-1+
AAA
JCR-VIS
299
22,257

Habib Metropolitan Bank Limited
A1+
AA+
PACRA
12,953

HSBC Bank Middle East Limited
P-2
A3
Moodys
-
63

KASB Bank Limited
-
-
-
16
14

Meezan Bank Limited
A-1+
AA
JCR-VIS
1,933
1,528

MCB Bank Limited
A1+
AAA
PACRA
6,970
22,415

National Bank of Pakistan
A1+
AAA
PACRA
4,234
105

NIB Bank Limited
A1+
AA-
PACRA
27,983
9,060

Silk Bank Limited
A-2
A-
JCR-VIS
494
1,094

Soneri Bank Limited
A1+
AA-
PACRA
1,402
3,816

Standard Chartered Bank (Pakistan) Limited
A1+
AAA
PACRA
3,827
2,506

Summit Bank Limited
A-1
A
JCR-VIS
72
73

United Bank Limited
A-1+
AA+
JCR-VIS
12,287
39,545

U Micro finance Bank Limited
A-2
A-
JCR-VIS
1,000

166
Total
MAPLE LEAF CEMENT
242,110
203,848
48.1.3(b) Counterparties without external credit ratings

These include customers which are counter parties to local and foreign trade debts against sale of
cement. Out of gross trade debts of Rs. 573.99 million (2014: 847.62 million), trade debts that are
subject to credit risk amount to Rs. 502.92 million (2014: Rs. 762.04 million). The analysis of ages
of trade debts of the Company as at the reporting date is as follows:

2015
2014

Gross
Impairment
Gross
Impairment
------------------------ (Rupees in thousand) -----------------------
The aging of trade debts at the reporting date is:

Not past due
300,876
-
459,795

Past due 1 to 30 days
146,844
-
318,070

Past due 30 to 150 days
57,737
-
29,523

Past due 150 days
68,537
3,423
40,229
8,580

573,994
3,423
847,617
8,580

Customer credit risk is managed by each business unit subject to the Companys established policy,
procedures and controls relating to customer credit risk management. Credit limits are established for
all customers based on internal rating criteria. Credit quality of the customer is assessed based on an
extensive credit rating. Outstanding customer receivables are regularly monitored and shipments to
the customers are generally covered by letters of credit or other form of credit insurance.

As at year end, trade debts do not include any balance receivable from related parties (2014: nil).

48.2 Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial assets, or that such
obligations will have to be settled in a manner unfavorable to the Company. Management closely
monitors the Companys liquidity and cash flow position. This includes maintenance of balance sheet
liquidity ratios, debtors and creditors concentration both in terms of the overall funding mix and
avoidance of undue reliance on large individual customers.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built
an appropriate liquidity risk management framework for the management of the Companys short,
medium and long-term funding and liquidity management requirements. The Company manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities. Included in note 17.1 to these financial statements is a listing of additional undrawn
facilities that the Company has at its disposal to further reduce liquidity risk.
Annual Report 2015
167
48.2.1 Exposure to liquidity risk

48.2.1(a) Contractual maturities of financial liabilities, including estimated interest payments

The following are the remaining contractual maturities at the reporting date. The amounts are
grossed and undiscounted, and include estimated interest payments and exclude the impact of
netting agreements.

Carrying
amount
Contractual
cash flows
2015
Less than Between

1 year
1 to 5 years
Above
5 years

----------------------------- (Rupees in thousand) -------------------------------

Non-derivative financial liabilities

Long term loans from banking companies
155,257
167,505
128,799
38,706

Redeemable capital
3,433,011
3,760,573 1,754,490
2,006,083

Syndicated term finances
433,500
455,029
455,029
-

Liabilities against assets subject

to finance lease
757,049
802,603
150,879
651,724

Long term deposits
6,619
6,619
-
6,619

1,829,161
1,829,161
1,829,161
-

108,132
108,132
108,132
-

2,555,742
2,555,742
2,555,742
-

9,278,471
9,685,364
6,982,232
2,703,132

2014

Carrying
amount
Contractual
cash flows
Less than Between

1 year
1 to 5 years
Above
5 years
----------------------------- (Rupees in thousand) -------------------------------

Non-derivative financial liabilities

Long term loans from banking companies
657,003
820,680
245,726
574,954

Redeemable capital
6,183,000
8,200,196
1,460,901
6,739,295

1,196,000
1,592,829
278,040
1,314,789


to finance lease
840,423
912,492
128,278
784,214

Long term deposits
6,879
6,879
-
6,879

1,987,082
1,987,082 1,987,082
-

174,625
174,625
174,625
-

2,618,528
2,618,528
2,618,528
-

13,663,540
16,313,311
6,893,180
9,420,131

48.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest
rates and equity prices will affect the Companys income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing return.
168
MAPLE LEAF CEMENT

48.3.1 Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies
in which advances, sales and purchases and bank balances are denominated and the respective
functional currency of the Company. The functional currency of the Company is Pak Rupee. The
currencies in which these transactions are primarily denominated are Euros and US dollars.

48.3.1(a) Exposure to currency risk

The summary quantitative data about the Companys exposure to currency risk as reported to the
management of the Company is as follows. The figures represent foreign currency balances after
conversion in Pak Rupees using exchange rates prevailing at the balance sheet date.

2015

CHF
EURO
USD
Yens Rupees

------------------------------ in thousand -----------------------------
Assets

Trade debts
-
-
667
-
67,655

Cash at bank
-
-
97
-
9,838

-
-
764
-
77,493

Liabilities


to finance lease
-
-
(7,444)
- (757,049)

Creditors and bills payable
-
(23)
-
-
(2,617)

Net balance sheet exposure
-
(23)
(6,680)
- (682,173)

Off balance sheet items

Outstanding letters of credit
(1,485)
(1,899)
(4,188)
(8,600) (811,809)

Net exposure
(1,485)
(1,922)
(10,868)
(8,600) (1,493,982)

2014

CHF
EURO
USD
Yens Rupees

------------------------------ in thousand -----------------------------

Assets

Trade debts
-
-
781
-
76,993

Cash at bank
-
-
76
-
7,480

-
-
857
-
84,473

Liabilities


to finance lease
-
-
(8,511)
- (840,422)

Creditors and bills payable
-
(24)
(5,559)
- (552,215)

Net balance sheet exposure
-
(24)
(13,213)
- (1,308,164)

Off balance sheet items

Outstanding letters of credit
-
(1,359)
(259)
- (208,761)

Net exposure
(1,383)
(13,472)
- (1,516,925)
Annual Report 2015
169
48.3.1(b) Exchange rates applied during the year

The following significant exchange rates have been applied during the year:

CHF
EURO USD YEN

2015 2014 2015 2014 2015 2014 2015 2014

----- Rupees -----
----- Rupees -------- Rupees ----- ----- Rupees ----Reporting date spot rate

- buying
109.42 110.59 113.57 134.46 101.50 98.55 0.83
0.97
- selling
109.64 110.82 113.79 134.73 101.70 98.75 0.82
0.97
Average rate for the year
107.68 114.24 121.10 139.93 101.51 102.90 0.88
1.02

48.3.1(c) Sensitivity analysis

A reasonably possible strengthening / (weakening) of 10% in Pak Rupee against the following
currencies would have affected the measurement of financial instruments denominated in foreign
currency and affected profit and loss by the amounts shown below at the balance sheet. The
analysis assumes that all other variables, in particular interest rates, remain constant and ignores
any impact of forecast sales and purchases.

EURO
USD
YEN
CHF
Profit
2015
2014
(21,870)
(110,528)
(705)
(16,282)
(18,639)
(133,037)
-

(149,385)
(151,676)

48.3.1(d) Currency risk management

Since the maximum amount exposed to currency risk is only 0.414% (2014: 0.469%) of the
Companys total assets, any adverse / favorable movement in functional currency with respect to
US dollar and Euro will not have any material impact on the operational results.

48.3.2 Interest rate risk

Interest rate risk is the risk that fair values or future cash flows of a financial instrument will
fluctuate because of changes in interest rates. Sensitivity to interest rate risk arises from mismatch
of financial assets and financial liabilities that mature or re-price in a given period.

170
MAPLE LEAF CEMENT
48.3.2(a) Fixed rate financial instruments

The effective interest / mark-up rates for interest / mark-up bearing financial instruments are
mentioned in relevant notes to the financial statements. The Companys interest / mark-up
bearing financial instruments as at the reporting date are as follows:

2015
2014
Financial Financial Financial Financial

assets liabilities assets liabilities

Note
- ------------- Rupees in thousand -------------
Non-derivative financial instruments

17
- 1,348,000
- 550,000

20
-
-
1,625
Bank balances at PLS accounts
33
115,965
- 98,524

115,965 1,348,000
100,149 550,000

The related profit / mark-up / interest rates for fixed rate financial instruments are indicated in the
related notes to the financial statements.

Fair value sensitivity analysis for fixed rate instruments

The Company does not account for any fixed rate financial assets and liabilities at fair value
through profit and loss account. Therefore, a change in profit / mark-up / interest rates at the
reporting date would not affect profit and loss account.

48.3.2(b) Variable rate financial instruments

2015
2014

Note
Non-derivative financial instruments

Long term loans
8

Redeemable capital
9

10

Liabilities against assets subject to

finance lease
11

17
Financial Financial Financial Financial

assets liabilities assets liabilities
- ------------- Rupees in thousand --------------
-
-
-
155,257
3,433,011
433,500
- 657,003
- 6,183,000
- 1,196,000
-
-
757,049
1,207,742
- 840,423
- 2,068,528

- 5,986,559
- 10,944,954

The related profit / mark-up / interest rates for fixed rate financial instruments are indicated in the
related notes to the financial statements.

Annual Report 2015
171
Cash flow sensitivity analysis for variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would
have (decreased) / increased profit by amounts shown below. The analysis assumes that all other
variables, in particular foreign exchange rates, remain constant. The analysis is performed on the
same basis for the year 2014.

Profit

2015
2014


Increase of 100 basis points

Variable rate instruments
(59,866)
(109,450)

Decrease of 100 basis points

Variable rate instruments
59,866
109,450

The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year
and the outstanding liabilities of the Company at the year end.

48.3.2(c) Interest rate risk management

The Company manages these mismatches through risk management strategies where significant
changes in gap position can be adjusted. The Companys significant borrowings are based on
variable rate pricing that is mostly dependent on Karachi Inter Bank Offer Rate (KIBOR) as
indicated in respective notes.

48.3.3 Price risk

Price risk represents the risk that the fair value or future cash flows of financial instrument will
fluctuate because of changes in market prices, other than those arising from interest rate risk
or currency risk, whether those changes are caused by factors specific to the individual financial
instrument or its issuer, or factors affecting all similar financial instruments trading in market.

48.3.3(a) Investments exposed to price risk

At the balance sheet date, the Companys investment in quoted equity securities and investments
in money market mutual funds is as follows:

2015
2014

Investment in equity securities
10,530
6,780

48.3.3(b) Sensitivity analysis

A 10.00% increase / (decrease) share prices at year end would have increased / (decreased) the
Companys fair value gain on investment as follows:

172
MAPLE LEAF CEMENT

Equity

2015
2014


Short term investment at fair value through profit and loss account

Effect of increase
1,053
678
Effect of decrease
(1,053)
(678)

48.3.3(c) Price risk management

The Company manages price risk by monitoring exposure in quoted equity securities and
implementing the strict discipline in internal risk management and investment policies. The
carrying value of investments subject to equity price risk are based on quoted market prices
as at reporting date. Market prices are subject to fluctuation and consequently the amount
realized in the subsequent sale of an investment may significantly differ from reported market
value. Fluctuations in the market price of a security may result from perceived changes in the
underlying economic characteristics of the investee, the relative price of alternative investments
and general market conditions. Furthermore, amount realized in the sale of a particular security
may be affected by the relative quantity of the security being sold.

48.4 Fair values

48.4.1 Fair value versus carrying amounts

The carrying values of all financial assets and liabilities reflected in the financial statements
approximate their fair values.

48.4.2 Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The
different levels have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

Level 1
Level 2
Level 3

Note (Rupees in thousand)

Short term investment at fair value through

profit and loss account

Next Capital Limited
27
10,530
-

Short term investment at fair value through

profit and loss account

Next Capital Limited
27
6,780
-

Annual Report 2015
173
48.4.3 Determination of fair values
A number of the Companys accounting policies and disclosures require the determination of fair
value, for both financial and nonfinancial assets and liabilities. Fair values have been determined
for measurement and / or disclosure purposes based on the following method:

Long term investments - level 1
The value of investment at fair value through profit and loss account is determined by reference
to quoted closing share prices at balance sheet date.
49. Capital management

The Boards policy is to maintain an efficient capital base so as to maintain investor, creditor and market
confidence and to sustain the future development of its business. The Board of Directors monitors the
return on capital employed, which the Company defines as operating income divided by total capital
employed. The Board of Directors also monitors the level of dividends to ordinary shareholders.

The Companys objectives when managing capital are:

i.
to safeguard the entitys ability to continue as a going concern, so that it can continue to provide
returns for shareholders and benefits for other stakeholders; and

ii.
to provide an adequate return to shareholders.

The Company manages the capital structure in the context of economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company
may, for example, adjust the amount of dividends paid to shareholders, issue new shares, or sell assets
to reduce debt.

Unit
2015
2014

Total debt
Rupees in 000
Less: Cash and bank balances
7,334,559
244,400

Net debt
7,090,159

Total Equity
Rupees in 000
12,911,658

Total capital employed
Rupees in 000
20,001,817
11,494,954
206,844
11,288,110
9,749,577
21,037,687

Gearing
Percentage
35.45%
53.66%

Total debt comprises of long term loans from banking companies, redeemable capital, syndicated term
finances, liabilities against assets subject to finance lease and short term borrowings.

There were no changes in the Companys approach to capital management during the year. The
Company is not subject to externally imposed capital requirements, except those, related to
maintenance of debt covenants, commonly imposed by the providers of debt finance. Decrease in
gearing ratio is mainly due to repayments of debts.

174
MAPLE LEAF CEMENT
50. Provident Fund Trust

The following information is based on the latest un-audited financial statements of the Provident Fund
Trust:

Un-audited Audited

2015
2014


Size of the fund - total assets
470,252
410,445
Cost of investments made
449,897
400,885
Percentage of investments made
98.06%
98.30%

Fair value of investments
461,135

The break-up of fair value of investments is:
403,471

2015
2014

Rs. in thousand Percentage Rs. in thousand Percentage

Shares in quoted securities
79,734
17.29%
-
Bank balances
7,033
1.53%
12,124
3.00%

Term deposit receipts
130,000
28.19%
181,300
44.94%

Government securities
193,774
42.02%
173,205
42.93%

Mutual funds
50,594
10.97%
36,842
9.13%

461,135
100.00%
403,471
100%

The investments out of Provident Fund Trust have been made in accordance with the provisions of
section 227 of the Companies Ordinance, 1984 and the rules formulated for this purpose.
51. Restriction on title and assets pledged as security

2015
2014


Mortgages and charges

Hypothecation of stocks, book debts and receivables
9,810,333
8,142,333

Hypothecation of plant and machinery
19,727,322
19,727,322

52. Number of employees

The total and average number of employees of the Company during the year and as at 30 June 2015 and
2014 respectively are as follows:

2015
2014

Average number of employees during the year
1,072
992

Total number of employees as at 30 June
1,107
1,004

Annual Report 2015
175
53. Non adjusting events after the balance sheet date

The Board of Directors of the Company in its meeting held on September 09, 2015 has proposed a final
cash dividend of Re. 1 per share, for the year ended 30 June 2015, for approval of the members in the
Annual General Meeting to be held on October 31, 2015.

54. Date of authorization for issue

These financial statements were authorized for issue by the Board of Directors of the Company in their
meeting held on September 09, 2015.

55. General

Figures in the financial statements have been rounded-off to the nearest thousand Rupees except stated
otherwise.
176
MAPLE LEAF CEMENT
DIRECTOR

42-LAWRENCE ROAD, LAHORE
PROXY FORM
I/We____________________________________________________________________________________
of _________________________________________________________________________________________

being a member of MAPLE LEAF CEMENT FACTORY LIMITED hereby appoint _____________________________
________________________________________________________________________________________

(Name)

of _____________________________________________________________another member of the Company
or failing him/her ____________________________________________________________________________
(Name)

of ______________________________________________________________another member of the Company
as my/our proxy to attend, speak and vote for and on my/our behalf, at the Annual General Meeting of the
Company to be held at its Registered Office, 42-Lawrence Road, Lahore on Saturday, October 31, 2015 at 11:00
AM and any adjournment thereof.
As witnessed given under my/our hand(s) _________________ day of October 2015.
1. Witness:
Signature
Name
CNIC
Affix
Revenue
_______________________ Stamp of Rs. 5/_______________________
Address
_______________________
_______________________

:
_______________________

2. Witness:
Signature
_______________________
Name
_______________________
CNIC
_______________________
Address
_______________________
_______________________
____________________________
Signature of Member / Attorney
Shares Held: ____________________________
Folio No.
CDC Account No.

Participant
I.D.
Account
No.

CNIC No.
Notes:

1. Proxies in order to be effective must reach at the Companys Registered Office, not later than 48 hours
before the time for holding the meeting and must be duly stamped, signed and witnessed.
2. CDC Shareholders, entitled to attend, speak and vote at this meeting, must bring with them their
Computerized National Identity Cards (CNIC) /Passports in original to prove his/her identity, and in case
of Proxy, must enclose an attested copy of his/her CNIC or Passport. Representatives of corporate
members should bring the usual documents required for such purpose.
AFFIX
CORRECT
POSTAGE
The Company Secretary

42-LAWRENCE ROAD, LAHORE
Tel: 042-36278904-05
A Kohinoor Maple Leaf Group Company

42-Lawrence Road, Lahore, Pakistan

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annual report 2015

Analysis of Financial Ratios

Annual Report 2015

MAPLE LEAF CEMENT

Profit After Tax

Earnings Per Share

Annual Report 2015

MAPLE LEAF CEMENT

MAPLE LEAF CEMENT

Chief Financial Officer

of the Private Sector, Jeddah

Annual Report 2015

MAPLE LEAF CEMENT

Annual Report 2015

MAPLE LEAF CEMENT

Annual Report 2015

2005, dry process plant capacity was increased

1967, a company with the name of White Cement

2006, a project to convert the existing wet

1974, under the WPIDC Transfer of Projects and

MAPLE LEAF CEMENT

2007, the Company undertook another expansion

Annual Report 2015

Code of Business Conduct and

5. All employees share a responsibility for the

2. Dealings with third parties which include

6. The Company has strong commitment to

3. Directors and employees are not allowed to

MAPLE LEAF CEMENT

7. Commitment and team work are key elements

KMLG Head Office

Company Profile and Group Structure

Annual Report 2015

this momentum in growth include the reform

MAPLE LEAF CEMENT

payments also improved at the backing of

Annual Report 2015

Statement of Overall Strategic Objectives

Improved capacity utilization of the Companys production facilities.

Modernization of production facilities in order to ensure the most effective production.

Effective marketing and innovative concepts.

Implementation of effective human resource solutions through personnel development, creating

Effective use of available resources.

Explore alternative energy resources.

7. Further improvements in Code of Corporate Governance through restructuring of assets and

Implementation of projects in social and economic development of communities.

MAPLE LEAF CEMENT

Annual Report 2015

Notice of Annual General Meeting

2) To approve the final cash dividend of Re.1/- per

without modification, addition(s) or deletion(s),

Resolved by way of special resolution that

Resolved further that the Chief Executive and

MAPLE LEAF CEMENT

Lahore: October 10, 2015

Change in their addresses;

Annual Report 2015

MAPLE LEAF CEMENT