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CONTENTS
02 About the Report 92 Brief Profile of Directors

04 Financial Highlights 97 Corporate Briefings
05 Geographical Presence 110 Report of the Audit Committee
06 Principal Business Activities 112 Board’s Disclosure on Company’s use of
08 Our Products and Markets Enterprise Resource Planning Software
09 Company Information 114 Corporate Sustainability
10 Vision Statement, Mission Statement 120 Social Performance
12 Core Values 138 Environmental Performance
14 Corporate Strategy, Culture 146 IT Governance Policy and Cybersecurity
16 Code of Business Conduct and Ethical Principles 150 Forward Looking Statement
18 History of Maple 152 Policy and Procedures for Stakeholders’ Engagement
20 Company Profile and Group Structure 153 Entity’s Significant Relationships
22 Value Chain Analysis 154 Integrated Reporting
24 Business Model 156 Economic Performance
26 Key Elements of the Business Model 160 Horizontal Analysis - Six Years
26 Significant Factors Affecting External 161 Vertical Analysis - Six Years
Environment and MLCFL’s Response 162 Summary of Cash Flow Statement - Six Years
30 SWOT Analysis 163 Comments on Six Years Analysis
32 Customer Landscaping and Market Positioning 166 Analysis of Financial Ratios
34 Calendar of Events 167 Comments on Ratio Analysis
36 Organizational Chart 168 DuPont Analysis
38 Statement of Overall Strategic Objectives 2022-2023 169 Composition of Local versus Imported Material
40 Management’s Objectives and Strategies and Sensitivity Analysis
41 Allocation Plan of Entity’s Significant Resources 170 Key Operating and Financial Data
42 Key Resources and Capabilities 171 Statement of Cash Flows Direct Method
Providing Sustainable Advantage 172 Results Reported in Interim Financial
45 Key Performance Indicators (KPIs) Statements and Final Accounts
46 Risks and Opportunities 173 Explanation of Negative Change in the
54 Notice of Annual General Meeting Performance against Prior Years
At Maple Leaf we connect black as a colour of creativity, it’s
72 Chairman’s Review 174 Statement of Value Added and How Distributed
poetic. As a leader we must be creative and encourage the
74 Directors’ Report to the Shareholders 176 Graphical Presentation - Stakeholders’ Information
creativity and innovation of our team members too. Nothing is
purer than something completely black-a blanket of spirituality 88 Statement of Compliance with the Code of Corporate Governance 178 Definitions and Glossary of Terms
comes to mind. Maple Leaf Cement sees the world in 91 Independent Auditor’s Review Report on the 180 Pattern of Shareholding
situational shades of black rather than as a completely black Statement of Compliance
and white world.
When things are in black, there is a finality and a commitment Financial Statements Consolidated Financial Statements
to us. As a leader our intentions must be pure, our ethics must 188 Independent Auditor’s Report 274 Directors’ Report on Audited Consolidated
be in check, and we must be as transparent to others in our 192 Statement of Financial position Financial Statements
thoughts and actions as possible. As leaders we are
194 Statement of Profit or Loss 276 Independent Auditor’s Report
committed, hold firm to commitments and lead from that
195 Statement of Comprehensive Income 280 Statement of Financial position
foundation. That commitment level makes things clearer for us
from darkness. 196 Statement of Cash Flows 282 Statement of Profit or Loss
197 Statement of Changes in Equity 283 Statement of Comprehensive Income
Therefore easier for us to lead and more consistent for others 198 Notes to the Financial Statements 284 Statement of Cash Flows
resulting black consciousness which is an attitude of the mind 285 Statement of Changes in Equity
and a way of life, the most positive call to emanate from the
286 Notes to the Consolidated Financial Statements
new corporate world because stars can’t shine without
365 Proxy Form
darkness.
1
ABOUT THE
REPORT financial and non-financial performance is covered in this report. While
the economic, environmental and social data presented in this report
Maple Leaf Cement Factory Limited (MLCFL) The Annual Report has been prepared to is with reference to activities and operations at Maple Leaf Cement
corporate Annual Report 2023 covers the first give an introduction and overview about Factory Limited. Along with operational impacts, the Annual Report also
period from 1st July 2022 to 30th June 2023. the principal activities of the business. It then covers the company’s aim of aligning its processes and activities with
All the activities and performance related data underlines the risk management framework Sustainability Development Goals (SDGs) and highlight the company’s
is related to MLCFL and its wholly owned of the company and then goes to explain the current contributions towards each goal. Company also explains it’s
subsidiaries Maple Leaf Power Limited (MLPL) governance structure, their performance and responsibility and performance related to corporate social responsibility.
and Maple Leaf Industries Limited (MLIL) does future strategies of the organization which The report concludes with the audited financial statements of the
not include any information or data related contains the directors’ report to the shareholders company along with the auditor’s report, prepared in accordance with
to its holding and/or associated companies and the chairman’s review. Performance and the accounting and reporting standards as applicable in Pakistan.
unless where required by legal and corporate future outlook are divided into economic,
regulations. social and environmental categories. Both the The Annual Report has been prepared in compliance of provisions and
directives of Companies Act, 2017 and Code of Corporate Governance
Regulations, 2019. Auditor’s report of compliance with Code of
Corporate Governance also falls part of this report. There has been no
change in the reporting period, boundary and scope of the report.
This Annual Report is available in both print and online form at www.
kmlg.com
Your feedback is of great value to the Company. Any queries, grievances

or general information can be promptly addressed by our 24/7 call centre
number: 0800-41111
2 3
2023 YEAR AT A GLANCE GEOGRAPHICAL
(CONSOLIDATED) PRESENCE
Head Office
42 - Lawrence Road, Lahore
Regional Sales Office, Lahore

304-B, 3rd Floor,
City Tower, Main Boulevard,
Gulberg II, Lahore.
Regional Sales Office, Rawalpindi

C/o Kohinoor Textile Mills Ltd.
Peshawar Road,
Rawalpindi.
Regional Sales Office, Peshawar

B 404 3rd Floor, JB Tower, University
Road, Peshawar.
Regional Sales Office,

Faisalabad
Office # 1, 7th Floor,
Legacy Tower, Kohinoor City,
Jaranwala Road, Faisalabad.
Regional Sales Office, Sahiwal

Office # 49 & 50, Tajj Chowk,
Saddique Block, Abbasia Town,
Sahiwal.
Regional Sales Office, Multan

Office # 506, 5th Floor, The United
Mall, Abdali Road, Multan.
Plant Regional office, Rahim Yar Khan

Iskanderabad Distt: Mianwali. Office No. 2, 1st Floor, Waryam Plaza,
Canal Avenue,Rahim Yar Khan.
Regional Sales Office, Sargodha
Office No. 3, 1st Floor,
Qureshi Arcade, Khushab Road, Regional Sales Office, Karachi
Sargodha. 25 West Wharf Road, Karachi.
4 5
HIGH, RIGHT
PRINCIPAL BUSINESS we provide the highest level
ACTIVITIES of reliability to you
Maple Leaf Cement Factory Limited (MLCFL) 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 four production lines for the production of grey cement and one line for
white cement in which it owns more than 90% market share. All four lines are owned assets of the Company.
Total installed capacity for clinker production as at June 30, 2023 is 7,800,000 tons annually.
The Company markets and sells its products all over Pakistan with market presence mainly in North and
Central regions. The Company also exports cement to Afghanistan, Middle East and other African countries.
LEADING EDGE INNOVATIVE

INITIATIVES
Today with a current clinker production capacity of 23,666 tons, per day we stand as the largest single cement
manufacturing unit at single site in Pakistan. Our production plants are powered by cutting edge technology
that helps us dominate local & International markets.
Maple Leaf Cement has at present two separate plants for Grey and White Cement; each with dedicated
production lines within the same facility that ensure a continuous supply of cement 24/7-330 days a year.
We have kept ourselves abreast of global improvements in the cement manufacturing technologies and
processes. Staying true to our mantra of technological excellence, another state-of-the-art fuel-efficient dry
process plant based on the Sinoma Plant Technology has been added to the existing production facilities. The
Company enhanced the total clinker production capacity to approximately 7.80 million tons annually.
FLSmidth is a global engineering company based in Copenhagen, Denmark which is a leading provider of one-
source cement production plants worldwide and has a presence in more than 40 countries.
MLCFL has a team of 1,610 professionals and highly skilled workers that make us what we are today. The
Company enriches and nurtures its employees by capitalizing and promoting their independent individuality,
personality and competence to reach greater heights of logic, reasoning, professionalism and emotional
grooming. Active Management Trainee Officer, trainee and internship programs and employing fresh graduates
are all insightful initiatives taken by the Company to fully grasp and appreciate their fresh ideas and perspective
towards key business issues for an overall innovative outcome.
NATURALLY
ENRICHED
Our factory is situated at Daud Khel, Punjab, near the Salt Range, it is surrounded by the finest quality of raw
materials; limestone, clay and sand. These valuable resources are quarried from the mineral rich mountain
ranges located at our manufacturing site. To ensure uninterrupted supply, the Company has strategically built
separate production plants for Grey and White Cement in this area.
6 7
OUR PRODUCTS COMPANY
AND MARKETS INFORMATION
OUR PRODUCTS and retailers. Our products are considered to be a Board of Directors Samba Bank Limited
premium brand and first choice by our customers. Mr. Tariq Sayeed Saigol .........................Chairman Silk Bank Limited
To cater to varying needs of the market, the Company Our Export team consists of seasoned and Mr. Sayeed Tariq Saigol ................Chief Executive Soneri Bank Limited
produces the following types of cement: - competent personnel who are persistently exploring Mr. Taufique Sayeed Saigol Standard Chartered Bank (Pakistan) Limited
new markets and avenues to bolster sales margins. Mr. Waleed Tariq Saigol
I. Ordinary Portland Cement Having a global footprint is imperative if a Company Summit Bank Limited
Mr. Danial Taufique Saigol
II. Sulphate Resistant Cement seeks to grow to its utmost potential. Despite facing The Bank of Punjab
Ms. Jahanara Saigol
III. Low Alkali Cement massive competition in the international arena from United Bank Limited
Mr. Shafiq Ahmed Khan
IV. White Cement technologically advanced nations, the Company
Mr. Zulfikar Monnoo
V. Wall Coat persevered and contracted favourable export deals in Auditors
Syed Mohsin Raza Naqvi
VI. HD Putty various markets. During the year, export sales quantity A. F. Ferguson & Co.
VII. White Plast constituted 3.04% of total sales. The Company sold Chartered Accountants,
its products to the following countries: Executive Directors
308-Upper Mall, Shahrah-e-Quaid-e-Azam, Lahore.
The varying products allow us to cater different Mr. Sohail Sadiq ...................................... Finance
Tel: +92 (42) 3519 9343-50
types of customers from household to contractors to • Afghanistan Mr. Yahya Hamid .................................. Marketing
Fax: +92 (42) 3519 9351
Government infrastructure needs as the composition • Mozambique www.pwc.com/pk
of cement required by each is different. • Nigeria Audit Committee
• Ethiopia Mr. Shafiq Ahmed Khan .........................Chairman
Legal Adviser
OUR MARKETS • Oman Mr. Zulfikar Monnoo .................................Member
Mr. Abdul Rehman Qureshi - Advocate High Court
• Qatar Mr. Waleed Tariq Saigol............................Member
Our key market consists of all the regions of Pakistan • Seychelles Mr. Danial Taufique Saigol ........................Member
Registered Office
which contributed 96.96% of our total sales volume • Sri Lanka
42-Lawrence Road, Lahore.
during current financial year. We operate in local • Tanzania Human Resource & Remuneration Committee
market through direct orders, distributors, dealers Phone: +92 42 36278904-5
Mr. Shafiq Ahmed Khan .........................Chairman
Fax: +92 42 36368721
Mr. Zulfikar Monnoo .................................Member
E-mail: [email protected]
Mr. Danial Taufique Saigol ........................Member
Factory
Chief Financial Officer
Iskanderabad, District: Mianwali
Syed Mohsin Raza Naqvi
Phone: +92 459 392237-8
Company Secretary
Call Center (24/7)
Mr. Muhammad Ashraf
0800-41111
Chief Internal Auditor
Share Registrar
Mr. Zeeshan Malik Bhutta
Vision Consulting Limited
Head Office: 5-C, LDA Flats,
Bankers of the Company
Lawrence Road, Lahore
Allied Bank Limited
Phone: +92 42 36283096-97
Askari Bank Limited Fax: +92 42 36312550
Bank Alfalah Limited E-mail: [email protected]
Bank Al-Habib Limited
BankIslami Pakistan Limited Company Website:
Albaraka Bank (Pakistan) Limited www.kmlg.com
Dubai Islamic Bank Limited
Faysal Bank Limited Note:
FINCA Microfinance Bank Limited MLCFL’s Financial Statements are also available at
Habib Bank Limited the above website.
Habib Metropolitan Bank Limited
Video presentation of CEO detailing financial per-
MCB Bank Limited
formance of the Company is also available on the
MCB Islamic Bank Limited above website
National Bank of Pakistan
PAIR Investment Company Limited
8 9
VISION & MISSION OUR
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.
OUR
MISSION
The Company shall achieve its mission 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.
10 11
CORE VALUES
Maple Leaf Cement Factory Limited 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.
CROSS INTEGRITY
FUNCTIONALITY
COLLECTIVE EMPATHY
WISDOM
CREATIVE THOUGHT
PROCESS
CROSS FUNCTIONALITY
Cross functional teams often function as self-directed teams in order to achieve common goals.
COLLECTIVE WISDOM
For sharing knowledge, innovative ideas, experience & individual expertise with others to attain
common objectives.
CREATIVE THOUGHT PROCESS

Out of the box ideas.
EMPATHY
Ability to understand & share feelings of others. Put oneself in someone else’s shoes.
INTEGRITY WE CAN
Adherence to moral & ethical principles; soundness of moral character & honesty.
ACHIEVE
12 13
CORPORATE
STRATEGY
We, at Maple Leaf Cement Factory Limited, 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
interests of our stakeholders and contribute towards the prosperity of the
Country.
CULTURE
The Company is committed to build a strong organizational culture that
is shaped by empowered employees who through collective wisdom will
create a cross-functional work environment in line with Company’s vision
and values. Maple Leaf Cement Factory Limited 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.
14 15
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 Company’s 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
Company’s 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.
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 is not in any way compromised.
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, they express are those of the Company and it is
the Company’s desire that such views be publicly disseminated.
5. All employees share a responsibility for the Company’s 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 Company’s best interests.
6. The Company has strong commitment to the health and safety of its
employees and preservation of environment and the Company will
persevere towards achieving continuous improvement of its Health,
Safety and Environment (HSE) by reducing potential hazards, preventing
pollution and improving awareness. Employees are required to operate
the Company’s facilities and processes keeping this commitment in view.
7. Commitment and team work are key elements to ensure that the
Company’s 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.
16 17
HISTORY OF MAPLE
1956 The Company was established by the West
Pakistan Industrial Development Corporation (WPIDC)
2013 The Company earned the highest ever record profit
after tax of PKR 3,225 million.
RELIABLE
and incorporated as “Maple Leaf Cement Factory
Limited”. The capacity of the plant was 300,000 tons 2014 The Company and Pakistan Railway signed an FOR MAXIMUM STRENGTH
clinker per annum. agreement to transport coal and cement from Karachi to
Daudkhel and vice – versa.
1967 A company with the name of “White Cement
Industries Limited” (WCIL) was established with the 2015 The Company recorded the highest ever turnover of
clinker capacity of 15,000 tons per annum. PKR 20,720 million as well as profit after tax of PKR 3,454
million. The Company reduced its debt burden by 46% as
1974 Under the WPIDC Transfer of Projects and compared with last year.
the Companies Act, 1913, the management of two
companies namely, MLCFL and WCIL were transferred 2016 The Company yet again recorded the highest ever
to the newly established State Cement Corporation of turnover quantitatively (3.34 million tons) and value wise
Pakistan (SCCP). (PKR 23.432 billion), as well as highest profit after tax of
Rs. 4.88 billion. The Company paid off its Rs. 8 billion
1983 SCCP expanded WCIL’s white cement plant by
debt in third quarter of the financial year much earlier
adding another unit of the same capacity parallel to the
existing one; it increased total capacity to 30,000 tons than the deadline of December 2018. The Company also
clinker per annum. established a wholly owned subsidiary, Maple Leaf Power
Limited, for the establishment and commissioning of a 40
1986 SCCP set up another production unit of grey cement MW coal fired power plant.
under the name of Pak Cement Company Limited (PCCL)
with a capacity of 180,000 tons per annum. 2017 Record cement sales amounting to Rs.23.9 billion
were made during the year with total dispatches crossing
1992 The Company, WCIL and PCCL were privatized 3.36 million tons. The Company announced another
and transferred to the KMLG. All three companies were expansion project of 7,300 tpd grey clinker.
merged into Maple Leaf Cement Factory Limited on July
01, 1992. 2018 The Company crossed Rs. 25 billion Net Sales
Revenue benchmark stemming from a record 18.96%
1994 The Company was listed on all Stock Exchanges growth in local dispatches. 40 MW coal-fired power project,
in Pakistan.
installed and operated by wholly-owned subsidiary Maple
1998 A separate production line for grey portland cement Leaf Power Limited, also started commercial production.
of 990,000 tons per annum clinker capacity based on Moreover, 12.5% Right issue amounting Rs. 4.3 billion to
most modern dry process technology was installed. partially finance new line of grey cement was successfully
subscribed.
2000 Maple Leaf Electric Company Limited, a power
generation unit, was merged into the Company. 2019 The Company has reached a new milestone of
Rs.26 billion Sales Revenue. Also, a new production line
2004 The coal conversion project at new dry process having capacity of 7,300 tpd of grey clinker production,
plant was completed. a brown field expansion at the Company’s existing site at
2005 Dry process plant capacity was increased Iskandarabad has started its commercial operations. As
from 3,300 tons per day (tpd) to 4,000 tpd through a result of this expansion, total grey clinker capacity has
debottlenecking and up-gradation of equipment and increased to 18,000 tpd.
necessary adjustments in operational parameters.
2020 The Company has achieved another milestone with
2006 A project to convert the existing wet process line to the highest ever sales revenue of Rs.29 billion and the
a fuel-efficient dry process white cement line commenced highest ever sales quantity of 5.2 million tons of cement.
its commercial production. Profit after tax was reported The Company raised Rs. 6.06 billion by Right issue to
PKR 1,059 million. make early repayments of its loan obligations.
2007 The Company undertook another expansion project 2021 Commenced construction on new cement line 4
of 6,700 tpd grey clinker capacity which commenced its and capacity enhancement of WHRP.
commercial production on November 01, 2007.
2022 The Company has achieved highest ever net sales
2008 Two existing lines of white cement 50 tpd each revenue of Rs. 48 billion and highest ever operating profit
clinker capacity converted into oil well cement plant which of Rs. 9 billion. WHRP on line III and Solar projects 12.5
started its commercial production. MW completed during the year.
2011 The Company successfully started Waste Heat
2023 The Company has achieved highest sales of Rs. 62
Recovery Boiler Plant.
billion and highest ever operating profit of Rs. 12 billion.
2012 The Company started earning profit and recorded Further, the company has installed new Line-4 having
PKR 496 million profit after tax. capacity of 7,000 metric tons per day.
18 19
COMPANY PROFILE WHERE
AND GROUP STRUCTURE
Maple Leaf Cement Factory Limited is a part of Kohinoor Maple Leaf Group (KMLG). KMLG comprises of two
AND
listed public limited companies i.e., Kohinoor Textile Mills Limited (KTML) and Maple Leaf Cement Factory
Limited (MLCFL) and two unlisted public limited companies i.e., Maple Leaf Capital Limited (MLCL), Maple
Leaf Power Limited (MLPL) and Maple Leaf Industries (MLIL). The Group companies are ranked amongst
the top companies in the cement, textile, power and investment sectors. All the group companies operate in
Pakistan only.
GO HAND IN HAND
Maple Leaf Cement Factory Limited (MLCFL) Act, 2017) and listed on Pakistan Stock Exchange
was incorporated in Pakistan on 13 April 1960 under Limited. The registered office of the Company is
the Companies Act, 1913 (now the Companies Act, situated at 42-Lawrence Road, Lahore. The principal
2017) as a public company limited by shares. The activity of KTML is manufacturing of yarn and cloth,
Company is listed on Pakistan Stock Exchange. The processing and stitching the cloth and trade of textile
cement factory is located at Iskanderabad District products.
Mianwali in the province of Punjab. The principal
activity of the Company is production and sale of Maple Leaf Capital Limited (MLCL) was
cement. The Company is a subsidiary of Kohinoor incorporated in Pakistan on 25 April 2014 under the
Textile Mills Limited (“the Holding Company”). Companies Ordinance 1984 (now the Companies
Act, 2017) as a public company limited by shares.
Maple Leaf Power Limited (MLPL) was The principal object of MLCL is to buy, sell, hold or
incorporated in Pakistan on 15 October 2015 under otherwise acquire or invest its capital in any sort of
the Companies Ordinance 1984 (now the Companies financial instruments. MLCL is a subsidiary of KTML.
Act, 2017) as a public company limited by shares.
The principal objective of MLPL is to develop, Maple Leaf Industries Limited (MLIL) is a Limited
operate and maintain electric power generation plant Company incorporated in Pakistan on 21 September
in connection therewith to engage in the business 2022 as a public limited under Companies Act 2017.
of generation, sale and supply of electricity. MLPL is The company is wholly owned subsidiary of Maple
wholly-owned subsidiary of MLCFL. Leaf Cement Factory. The Company’s objective is to
produce, manufacture, prepare, treat, process, refine
Kohinoor Textile Mills Limited (KTML) is a public and deal in all kinds of cement and allied products.
limited company incorporated in Pakistan under The company has not yet commenced production.
the Companies Act, 1913 (now the Companies
20 21
VALUE CHAIN
ANALYSIS
MLCFL principal business activity is to produce and strictly monitored by highly qualified specialists, to ensure
sell cement products. Manufacturing cement involves that the best possible product is manufactured for our
blending a mixture of limestone and other minerals at valued customer.
a high temperature in kilns. Diesel is used to initially fire
the kiln whereas coal is used to heat the kiln at desired Facilitating downstream along the value chain, MLCFL
temperature. has its own 24/7 Customer Service Centre, first ever in the
history of the Pakistani cement industry. The objective of
YOUR PROJECTS
On the upstream part of value chain, raw material for
cement manufacturing includes limestone, gypsum, clay,
this service is to bring MLCFL a step closer towards our
valued customers. Customers can obtain any information
WITH OUR PRODUCTS
iron ore etc., which mainly are excavated from mines pertaining to our Company, our products, order dispatch
either directly by the Company or through contractors. details, payment history and for complaints/suggestions,
These materials are first excavated from mountains direct access to the top management.
obtained on lease from the Minerals department, against
which royalty is paid on a monthly basis. Coal used as Through efficient use of its marketing strategy, MLCFL
fuel in the process is one of the major cost ingredients. is creating a pull effect by locking-in its customers
MLCFL directly imports high quality coal from South and is consequently able to tap the potential markets
Africa, also procures Afghanistan coal and local coal for proactively. Various activities focusing on engaging the
use in the manufacturing process. dealers and even the masonry staff have been initiated by
the Company. Such activities encourage the dealers and
MLCFL has invested in maintaining a smooth flow masons to recommend the product portfolio of MLCFL.
of operations. The company has implemented a We in collaboration with TEVTA have created a pool of
proactive approach to mitigate its risk of disruptions highly skilled masons through the Master Mistri Program.
in the production process. The Reliability Centered
Maintenance (RCM) team is specialized in using various Value chain analysis has enabled MLCFL to identify its
maintenance techniques such as predictive, preventive core competencies and to identify key stakeholders in
and proactive maintenance to keep in pace all the the process of the value creation as well as those along
machinery and equipment for their adequate functionality the upstream and downstream value chain. Moreover,
and to increase cost effectiveness, machine uptime, this analysis has helped MLCFL in identifying the activities
and a greater understanding of the level of risk that which add value for its customer and also to evaluate its
the organization is presently managing. At MLCFL, the competitive positioning in industry.
mining, grinding, crushing and blending processes are
22 23
BUSINESS MODEL
Just for Trust.....!

We will help you build strong,
whatever you construct.
24 25
KEY ELEMENTS OF THE
BUSINESS MODEL
Capitals Key Elements
External Factors Organizational Response
Input Raw material ( Limestone, Gypsum, Clay)
Component
Business Process Manufacture of Cement Products
Social • Stakeholders’ inclination • Ensuring compliance with all requirements of
Output Clinker and Cement Produced towards CSR compliant Corporate Social Responsibility (CSR).
Outcome Economic and Social Benefits organizations.
• The Company’s focus to report performance
Explanation of any material changes in the Company’s business model during the year. based on Triple Bottom Line Reporting
There has been no material change in the business model during the year. Framework.
• Better retention in
SIGNIFICANT FACTORS AFFECTING EXTERNAL organizations offering
• The Company built a state of the art hospital
at its plant site in collaboration with Al-Shifa
affordable health and Islamabad to provide health facilities to
ENVIRONMENT AND MLCFL’S RESPONSE educational facilities. employees and general public. Further, the
Company contributed to educational facilities
External Factors Organizational Response • Attitude change towards for public at large “Al Aleem medical college in
Component welfare of public at large. Ghulab Devi Educational Complex.
Political • The decline in GDP growth, • Management proactively plans for different • Company regularly contributes a handsome
significant cut in PSDP and demand scenarios with the help of budgeting,
amount of donation towards hospitals, schools,
bleak economic situation. forecasts and projections.
mosques and sports centres.
• Exploring new export markets to efficiently utilize
• Prolonged political unrest production capacities in response to reduction
badly impacting the in sales volumetric growth in local market.
performance of Pakistan
Stock Exchange (PSX). • Regular market analysis by senior management • Company has the most novel European plant
and the Board. Technological • Technical obsolescence
of production facilities. from FLSmidth to avoid any risk of technical
• Conducting corporate briefings and roadshows, obsolescence. Additionally, company is in the
both at national and international level, to process of adding a state-of-the art new grey
• Continuous development
mitigate the impact of government policies cement line.
of information technology
and actions on the market capitalization of the
infrastructures and • Company continuously invests in the robust
company. It further helped increase and sustain
Management Information hardware and software for system up-gradation
foreign shareholding in the total capital structure
of the company.
Systems (MIS) software. and MIS. Recently company has managed ERP
and EAM modules for meeting latest reporting
Economical • Usage of coal fired power project has resulted • Communication needs.
• Price hike in major input
in a handsome decline in the overall power cost infrastructure.
costs especially fuel, power
pool, which led to a reduction in per ton power
and packing materials. • Company has developed a highly interactive
cost.
Supply Chain Management Software that has
• Installation of renewable energy i.e. solar power
• Devaluation of local currency. been designed to track shipments and create
projects of 12.5 MW.
• Installation and commercial production of waste
online orders.
• Inflation.
heat recovery Coal fire project at Line-4.
• The Company has ensured the provision of
• Inconsistent economic • The Company met price hikes in input costs by; latest Microsoft outlook software to meet
policies a) Efficient procurement of coal and pet coke on communication needs of all company personnel
account of better negotiation. internally and with all external stakeholder
groups.
b) Transportation cost, being a major component
of overall overhead cost, is curtailed by
transportation agreement with Pakistan
Railways.
c) Effective inventory management by meticulously
reviewing inventory-holding periods.
d) Cost reduction initiatives to control production
and non -production related fixed costs.
26 27
External Factors Organizational Response
Component
Environmental • Attitude towards and • Company is successfully operating waste heat

support for renewable
energy. recovery project (WHRP) for electricity generation
from emitted heat of the kilns.
• Air pollution & deforestation The Company has installed 12.5 MW solar power
• Lowering of underground projects.
water belt. • Planting trees to limit the emission of harmful gases
• Growing attention towards in the atmosphere and to ensure maintenance and
“green” attitudes lifting up the underground water level by reducing
the evaporation process.
• The Company has been approved the standards
of ISO 14001 and ISO 18001 for complying with
an effective Environmental Management System
(EMS) and Occupational Health and Safety
Assessment Series (OHSAS) requirements.
Legal • Enforcement of new • Company has engaged an efficient team of

Companies Act 2017. professionals to ensure compliance with all
enacted and or substantially enacted statutes,
• Continuous amendment in
the provisions of Income acts and ordinances. It further equips the company
Tax Ordinance 2001 and with an up-to-date knowledge of all prevailing legal
Sales Tax Act 1990 resulting requirements.
from finance bill on annual
basis. • Company ensures that all taxes and duties
• Amendments in the payments, whether income tax or sales tax,
requirements of code of are made timely by having an effective cash
corporate governance, management system in place.
Pakistan Stock Exchange
rules and the requirements • The Company has equipped itself with a competent
of SECP Act. legal team to make itself updated on employment
• Severe FBR actions to deter and industrial laws. It further helps the management
non- compliance and late in complying with requisite updates on timely basis. LEGITIMATE NEEDS, INTEREST OF
payments.
KEY STAKEHOLDERS AND INDUSTRY
• Amendments inemployment TRENDS
laws and industrial relations
regulations. Lawful need and interests of key stakeholders of the Company
are positive growth in profits, net worth, higher & sustainable
returns on their investments, compliances with laws and
regulations, contributions and improvement towards local
EFFECT OF SEASONALITY ON BUSINESS community, to add positive impact on all parts of supply
chain and adding a positive impact in health, education and
Seasonality has an impact on cement production. Cement sales are higher in spring/summer months due to environment through CSR activities.
longer duration of the day, the sales fall during monsoon and winter due to less construction activities.
Cement industry is pursuing the following for gaining
competitive advantage and sustainable growth of the business.
1. Capacity expansions to meet higher demands;
2. Adoption of latest technologies to be cost efficient;
3. To avail renewable energy resources like WHRP and solar
projects; and
4. To explore cheaper fuels to be used in production process.
28 29
WITH NATURE IN MIND
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
• Largest single cement producing site in Pakistan. • Cyclical industry.

• State of the Art FLSmidth plants.
• High EBITDA Percentage. • High transportation cost.
• Excellent logistic management including Pakistan Railways • Highly regionalized and localized
arrangement.
• Fully diversified cement producer. market.
• Strong local and international branding.
• Offering over 330 days/year production. • High electricity cost.
• Well diversified fuel mix and efficient operation. • High taxation.
• Well-developed and refined human resource.
• Low energy cost per ton for clinker.
• Own self-power generation coal-based power plant.
OPPORTUNITIES THREATS
• Focus on cost optimization. • Rising cost of logistics.

• Rising cost of power.
• Availability of housing loan from financial institutions. •Rising fuel rates in international
• Rising population works as a catalyst for housing boom. markets.
• Currency devaluation risk.
• Low per capita consumption. • New entrant threats in the view of
rapid capacity enhancements due
• Research to develop new products.
to high potential market.
• High incidence of taxes.
• High cost of financing
• Low GDP growth rate
30 31
CUSTOMER LANDSCAPE AND
MARKET POSITIONING LEGISLATIVE AND REGULATORY POLITICAL ENVIRONMENT AND IMPACT OF
The Company’s competitive landscape and market positioning is described below: ENVIRONMENT IN WHICH THE COMPANY OTHER COUNTRIES ON THE COMPANY
OPERATES
The political environment of the country has not
Maple Leaf Cement Factory Limited was been stable, there has been uncertainty as regards
THREAT OF NEW COMPETITION employed a marketing and branding team which incorporated in Pakistan under the Companies Act, to political stability and economic conditions. Global
organizes events and makes real time visits to its 1913 and is listed on Pakistan Stock Exchange. matters also affect the economy of our country in
The cement sector in Pakistan is heavily dependent dealers to further strengthen the bond of loyalty and The Company is subject to all the relevant laws and many ways because they effect the supply of inputs
upon the nature and state of the economy of the inspire unity. regulations which are prevailing and are applicable which in turn increase the prices of the commodities.
nation where production capacity and ultimate to all the listed companies operating in Pakistan. Global coal and oil prices escalated sharply due to
dispatch is pegged towards demand and current BARGAINING POWER OF SUPPLIERS Further financial statement of the Company has cut in coal production by Indonesia and the war
PSDP’s allocation by the government. Given the been prepared in accordance with the Accounting between Russia and Ukraine. Further, increase in
external circumstances, the industry has shifted It is common practice for large manufacturing and Reporting Standards as applicable in Pakistan. inflation and interest rates across the globe has
towards the mature phase of its product life cycle in concerns to enjoy a wide supplier base who are keen The accounting and reporting standards applicable strengthened US Dollar resulting in Pak Rupee
which competition is high, demand is stagnant and to do business with it, MLCFL being no exception. in Pakistan comprise of: devaluation and high local inflation.
key players are firmly established. The Company has been doing business with a large
list of approved vendors on its panel, having a history SIGNIFICANT CHANGES FROM PRIOR YEARS
• International Financial Reporting Standards
Furthermore, the cement sector by its natural design of professional business ethics, to maintain a healthy (IFRS) issued by the International Accounting The external environment is constantly changing
has high barriers to entry where having economies of competition. Thus, the Company enjoys a privileged Standards Board (IASB) as notified under the such as low spending of government on PSDP
scale is paramount. Capital investment requirements bargaining power while keeping the business norms Companies Act 2017; during the year, constant rise in inflation, halted
and business set up costs remain exorbitant and intact. The Company has an extensive vendor construction activities, strict monitoring and
access to key distribution channels and raw material selection process in place which is supervised by • Islamic Financial Accounting Standards (IFAS) regulation by the Government on certain industrial
is essential to success. the Audit Department to ensure transparency and issued by the Institute of Chartered Accountants sectors. Global coal started decreasing during the
fairness. of Pakistan as notified under the Companies 3rd and 4th quarters of the financial year but on the
Cumulating all above factors, it is highly unlikely for Act, 2017; and other hand, oil prices were on an increasing trajectory
new players to enter the market. Raw material is obtained through long term lease due to ongoing war between Russia and Ukraine.
contracts with Mines and Mineral Department, • Provision of and directives issued under the Interest rates have significantly increased during the
THREAT FROM SUBSTITUTE PRODUCTS Government of the Punjab. Sufficient letter of credit Companies Act, 2017. year which has greatly increased the borrowing cost.
lines are available to facilitate ease of business with Further, Pak Rupee devaluation resulted in higher
To say that cement has shaped the world of today foreign suppliers. Whereas, fuel and other input Where provisions of and directives issued under inflation and input costs.
won’t be an overstatement. Infrastructure, may it be materials are purchased after extensive market the Companies Act, 2017 differ from the IFRS,
housing, roads, towering skyscrapers, bridges, dams, research and negotiation to protect the Company’s the provisions of and directives issued under the
or even the Wonders of the World, wouldn’t have interests. Companies Act, 2017 have been followed.
been possible without cement.
INTENSITY OF COMPETITIVE RIVALRY
From a commercial perspective there is no direct
substitute of cement. Competitive forces are fairly strong in the cement
sector which consists of rival companies aggressively
BARGAINING POWER OF CUSTOMERS competing with one another on price and market
share. The cement companies are geographically
Generally, cement in Pakistan is not directly sold to situated all over in Pakistan that results in intensified
end consumers. The manufacturing company sells competition as far as market share and price are
the product to registered distributors, dealers and concerned. MLCFL has continuously been working
retailers who further the supply to the end consumers. hard to maintain its brand loyalty, market share
expansion, efficient supply chain and superior quality
MLCFL endeavours to add more dealers to its products.
customer base with whom the Company enjoys a
healthy, mutually beneficial relationship based on trust MLCFL has always been the first priority of cement
and honouring of business terms. consumers due to its superior quality products giving
an edge to the Company in the intensive competitive
The Company has established a 24/7 call center to environment.
stay in touch with all its stakeholders. All the queries,
order inquiries and grievances (if any) are addressed
on real-time basis. Furthermore, the Company has
32 33
CALENDAR OF CALENDAR OF OTHER
CORPORATE EVENTS NOTABLE EVENTS
JULY 2022 - JUNE 2023 JULY 2022 - JUNE 2023
34 35
ORGANIZATION
CHART
36 37
BELIEVE IN
DELIVERING
BUILD STRONG, BUILD WITH QUALITY
STATEMENT OF OVERALL
STRATEGIC
OBJECTIVES 2023-2024
Following are the main principles that constitute the strategic objectives of MLCFL: -
SHORT TERM OBJECTIVES
• Improved capacity utilization of the Company’s production facilities.
• Effective use of available resources.
MEDIUM TERM OBJECTIVES
• Modernization of production facilities and adoption of latest technologies in order to

ensure the most effective production.
• Compliance with further improvements in implementation of Code of Corporate

Governance (CCG) through optimization of management processes.
• Effective marketing and innovative concepts.
LONG TERM OBJECTIVES
• 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.
• Explore alternative energy resources.
• Compliance with local and international environmental and quality management

standards, implementation of technologies allowing to comply with the limitations
imposed on pollutant emissions.
• Implementation of projects in social and economic development of communities.
38 39
MANAGEMENT’S OBJECTIVES
AND STRATEGIES
ALLOCATION
PLAN OF ENTITY’S
SIGNIFICANT
RESOURCES
The Company’s resources mainly consist of human resource, financial
resource, and technological resource.
HUMAN RESOURCES
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 analyse the human resource right from
selection till retirement. We believe in adding value to our human resource by
extensive trainings and development program.
FINANCIAL CAPITAL MANAGEMENT

The Management of the Company has breadth of experience and
knowledge of best practices in liquidity management pertaining to
Prime objective of management is to change the We have reduced variable cost due to efficient energy policies, processes, regulatory constraints, tax considerations and liquidity
culture from a State Cement traditional hierarchy management and other cost reduction measures. management system. The Company steadfastly navigates through
and status quo enterprise to a customer driven, The to date results, financial and nonfinancial, are the challenging obstacles by putting in the utmost effort to manage its working
empowered and cross functionality focused company. reflection of achievement of management’s objectives capital requirements through fruitful fixed cost reducing techniques.
Our objectives are determined to increase our retention which are strategically placed to increase the wealth of Capital structure mainly consists of ordinary share capital and long term/
value along with reduction in cost. We strive to achieve stakeholders. The said results are properly evaluated short term debts. Management believes that there is no inadequacy in
our objectives with collective wisdom and empathy. against the respective strategic objectives to confirm capital structure in the status quo. MLCF maintained its credit rating with
We are committed to enhance stakeholder’s value. the achievement.
long term rating of A and short-term rating of A-1, indicating high credit
To achieve our corporate objectives, we have given
worthiness and the Company’s ability to settle its financial obligations in a
priorities to refine and implement our human resource We have a dedicated team to work on our brand
timely manner.
policies and Standard Operating Procedures (SOPs). development. This team has the capacity and objective
Quality Management System (QMS) function has been to develop brand loyalty, increase in customer base and
implemented that seeks to lower non-conformance customer retention by using effective marketing and STRATEGY TO OVERCOME LIQUIDITY RISK
costs through an active focus on health, safety, innovative concepts. This team has been contributing The Company is highly proficient to manage liquidity risk and in order to
environment, housekeeping and operations. to achieve the company’s strategic objectives. Some cope with it, MLCFL invests only in highly liquid resources to mitigate the
of the achievements include successful running of risk. Efficient utilization of available resources, better control over production
Apart from the above, we have implemented scientific 24/7 call center to ease our customers’ queries, new overheads and better retention resulted in increased cash generation from
performance evaluation techniques that are linked product introduction in the market and to manage operations and recovery of losses of previous year. The company continues
to KPIs (Key Performance Indicators). We have also brand loyalty. with its plan to utilize the cash generated from operations for repayment of
developed Reliability Centered Maintenance System its debt and borrowings on a timely basis, which will result in the reduction of
for achieving run factor of 330 days considering it as The Company has been very keenly observing all
financial cost and resultantly, net profit of the Company will be increased. The
an opportunity to improve our bottom line. We believe the compliance with CCG and auditors report on
Company’s liquidity situation has drastically improved as compared to prior
that training is the source of all process driven thinking. compliance with all requirements of code of corporate
year with a reduced operating cycle.
Local and international trainings for key management governance in the acknowledgment of company’s
personnel are arranged on regular intervals including efforts towards achieving its strategic objective
6 sigma trainings. We have framed well defined towards compliance.
different teams to address the key areas like Team
Energy, Team Reliability Centered Maintenance, Team All of the above-mentioned strategies are in place to
Improvement and Team Culture Development. Priority achieve the company’s short term, medium term and
is being assigned to control production cost. long-term objectives.
40 41
EFFECT OF TECHNOLOGICAL CHANGE, SOCIETAL
ISSUES AND ENVIRONMENTAL CHALLENGES
Technology: It has a direct link to productivity, cost

efficiency and generates overall competitive advantage.
Management has always recognized adopting latest
KEY RESOURCES AND CAPABILITIES technologies as a key strategic objective and hence
always invested significant resources for up-gradation
PROVIDING SUSTAINABLE ADVANTAGE and modernization of equipment resulted in availing

the most modern and state of the art technology to be
installed in every successive cement line and effectively
1. Naturally Enriched Company has availed naturally enriched mines on lease automate its business processes with each consecutive
year. The Company formulates its budget every year for
Leased Mines extracting key raw materials limestone, gypsum etc. which
coherent resource allocation and advancements through
are in the close vicinity of the plant, is not only a competitive its CAPEX projects.
advantage itself but also enables the Company to avoid high
transportation costs. ESG Report and Challenges: The ESG reporting
2. Human Capital The management of the Company believes in recognizing the influences the strategy at Maple Leaf Cement by
increasing the focus on Environment, Society, and
employees as their assets and ensure diversity, competencies,
Governance. This allows the company to take more
requisite Knowledge and skill and experience in the perfect mix. initiatives related to the ESG and allocating more
The Company has the procedures in place to hire, compensate, resources such as financial resources, human resources
motivate and retain the human capital. and time for the achievement of excellence in ESG.
3. State of the Art The Company has installed state of the art plant technology
Enabling Innovation and Managing Resource
Plant of the world. Quality is assured through systematic and
Shortages: Maple Leaf’s strategy focus on enabling the
effective adoption, implementation, monitoring and continuous
innovation and finding the innovative solutions to the
enhancement of quality control systems using latest methods current problems which helps in saving the resource.
of analysis. The plant is based on latest technology which The price examples are technologies, supply chain
produces best quality cement on competitive cost which gives management apps, waste heat recovery plant, and
the competitive advantage. the solar power at Maple Leaf Production plant. The
company allocates more funds for these innovative ideas
4. Transportation The Company has in place the arrangement with railway network
and implementations in order to sustain and manage
Arrangements which gives Company not only cost savings but also provides shortage of resources.
competitive advantage because of accessibility of railway line
from within the plant. Societal issues and environmental challenges: The
5. Brand Maple Leaf Cement has developed itself as a superior brand Company is fully aware and legally compliant with its
corporate social responsibility. Social and environmental
which gives a competitive advantage and secures customer
issues are dealt with in accordance with sustainability
acceptance. goals and CSR policy. Company’s overall approach to
comply with these matters are reported in detail in the
Value created by the business for stakeholders using resources and capabilities sustainability section of the report.
By using the resources and capabilities of the Company, the business creates value for all PROCESS FOR MONITORING CULTURE,
the stakeholders including shareholders, suppliers, customers, employees, and the society. INTEGRITY AND ETHICAL ISSUES
Business generates profits and increases the net worth of the Company for the shareholders,
benefits suppliers by giving them the business, engages employees and in return provides In MLCF, problem solving & decision making usually
market competitive compensation to them and also contributes towards the betterment of the takes place through cross functional forums where
society by pursuing corporate social responsibilities. various departmental heads along with the management
representatives take major decisions mutually keeping in
view the requirements of various functions.
Moreover, in order to enhance the culture and impart

positive attitude among the staff members, various soft
skills training & development programs are organized
along with the mentoring sessions of staff to address
various grievances and other professional / ethical issues.
THE FOUNDATION
PROGRESS
KEY PERFORMANCE
INDICATORS (KPIs)
Following are some of the key performance measures and indicators against stated objectives of
the Company: -
Sr. No. Objectives Measures
1 Improved capacity utilization of the Company’s Number of days run factor, mean time
production facilities. between failure (MTBF).
Modernization of production facilities in order Reduction in unplanned stoppages.

2
to ensure the most effective production.
3 Effective marketing and innovative concepts. Increase in retention and sales volume.
4 Implementation of effective human resource Higher return on human capital.
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. Decrease in variable cost.
6 Explore alternative energy resources. Reduced dependence on national grid.
7 Further improvements in Code of Corporate Higher legal compliance level and reduction
Governance through restructuring of assets and in contingencies.
optimization of management processes.
8 Compliance with local and international Compliance with SOPs.
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 Allocation of funds for CSR and their
development of communities. monitoring.
Management believes that current key performance measures continue to be relevant in future as well.
SIGNIFICANT PLANS AND DECISIONS DURING THE YEAR

The Company has completed the project of Line-4 in Q’3 of FY’2023 which has the capacity of 7,000
metric tons per day. The Company has adopted the strategy to utilize maximum cash profits with minimal
reliance on debt. Moreover, in order to reduce the higher financial costs, the Company has availed Long
Term Finance Facilities (LTFF) and Temporary Economic Refinance Facilities (TERF) for its capex projects.
The Company has no plans for corporate restructuring and discontinuance of operations.
SIGNIFICANT CHANGES FROM PRIOR YEARS
There is no material change in Company’s objectives and strategies from the previous year.
RISKS AND
OPPORTUNITIES
C. 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:
The Board has implemented an effective ongoing process to identify business risk and to measure
the potential impact of deviation from strategic objectives including those which may threaten the
Company’s business performance and result in solvency / liquidity issues.
D. RISK MANAGEMENT METHODOLOGY
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,
RISK MANAGEMENT FRAMEWORK people and system.
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 by ensuring affordable Financial Risks Financial risk is an umbrella term for multiple types of risk associated with financing,
availability of necessary capital. Management has adopted a risk management approach and internal control profitability, liquidity and credit.
framework, based on its business philosophy and corporate objectives, which is explained step by step below:
A. STRATEGY FORMULATION The materiality approach is the fundamental principle behind the company’s risk management
methodology. Management believes materiality as a key component of an effective communication
Management reviews the Statement of Strategic Objectives annually that represent the Stakeholders’
with stakeholders. The management has adopted materiality approach which is based on a
expectations and are the lead indicators for determining the success level of the Company. In order
combination of stakeholder engagement, understanding of environmental limits and strategic
to materialize the objectives, Management adopts certain strategies. These strategies are approved
alignment. It has made the process, assumptions and evidence base for identifying material issues
by the Board of Directors and are subject to adjustment, depending upon any changes in the external
for more transparent, credible and amenable disclosures to have more transparency on risk and
business environment or internal organizational factors.
opportunities.
B. KEY RISKS AND OPPORTUNITIES OF CAPITALS
Materiality is a key component for an effective communication with stakeholders. The materiality
approach adopted by the company is a combination of all important areas that are essential for the
FORM OF CAPITAL KEY RISK KEY OPPORTUNITIES
business’s growth and success as well as the areas that have an impact on the environment or social
aspects.
Financial Capital Increased packing Resumption of CPEC projects.
and power generation cost
Not being conclusive, management considers that following are the major risks which may affect the
Human Capital Loss of qualified and Bagging unparalleled and ideal workforce operations of the Company and mitigating strategies for these risks.
competent staff from the market.
Manufacturing Capital Obsolesce of technology Investing in the latest technologies and state
of the art equipment.
Social and Relationship Bad reputation and publicity Building relationships along the value chain
Capital and developing the company portfolio.
Natural Capital Water shortages Easy access to limestone, gypsum and clay
deposits for cement manufacture.
46 47
E. RISK AND COUNTER MEASURES STRATEGY MATRIX
Corporate Objective Risk Assessment Mitigation Strategies WORKFORCE AND

Industry Competition: Strategic Risk: Likelihood: Through efficient use of
To maintain Company’s Increase in production Medium marketing strategy, MLCFL
prominent position as one of capacities and limited Magnitude: is creating a pull effect by
the leading brands of cement growth in demand may lead High locking-in its customers
industry of Pakistan. to increased competition and also to tap potential
among rivals markets.
Source: External
Financial Risk: Likelihood: The Company is actively

Increased packing cost, fuel Medium looking into alternate
and power generation cost Magnitude: sources of power
may result in increase in cost High generation to reduce cost.
of production and squeeze
margins for the Company.
Source: External
E. RISK AND COUNTER MEASURES STRATEGY MATRIX
Corporate Objective Risk Assessment Mitigation Strategies
Legislative and Legal Strategic Risk: Likelihood: Management is proactively

Environment: Continuous changes in the High following any changes
To operate in a stable market regulatory framework and Magnitude: occurring in the regulatory
being compliant with all statutory obligations may Medium framework relating to the
relevant laws of the country result in non-compliance. cement sector.
and international regulations Source: External
Technology: Strategic Risk: Likelihood: Management is continuously

To automate and upgrade Lag in production reporting Low investing considerable
supporting processes and due to different MIS platforms Magnitude: amounts for up gradation of
related MIS in relation to may result in delayed decision High technological infrastructure
production of cement to making for corrective actions. in order to harmonize the
speed up such activities. Source: Internal MIS platform throughout the
Company.
Operations: Operational Risk: Likelihood: To avoid such stoppages,

To ensure continuity of Machinery breakdown/ Low a reliability centre has been
operations without any stoppages adversely affect Magnitude: established which runs
disruptions in production the profitability of the entity High a number of operational
and minimize idle time. as it hinders production and checks to ensure smooth
delays operation. operations and avoid
Source: Internal breakdown and Enterprise
Asset Management module
is in place as the system to
monitor this. The Company
has developed the culture
wherein it promotes and
enables innovations in
processes.
48 49
F. OPPORTUNITY ANALYSIS
Corporate Objective Risk Assessment Mitigation Strategies
Unlocking and exploiting operational opportunities is an important aspect of MLCFL entrepreneurial activities.
Human Capital: Operational Risk: Likelihood: Succession planning We are committed to use existing products and new solutions in order to systematically enhance our growth
To have an adequate reserve Loss of the qualified and Low and capacity building of and strengthen our position in global markets. Investing in new projects and increasing the productivity of
of trained professionals competent staff. Magnitude: existing resources are one existing ones are key elements for future organic growth. In the year under review, we strengthened the basis for
excelling in their respective Source: Internal Low of the primary focus of the further growth in the coming years by making selective investments in our existing businesses and developing
domains. Company. innovations that support in achievement of company’s stated vision.
Key opportunity Impact area Strategy to materialize

Health and Safety: Operational Risk: Likelihood: A sound system of HSE
To ensure health and safety Accidents can take place Low is in place for timely
Resumption of CPEC Social, Relationship Capital The Company has enhanced its production
of employees in workplaces. which can cause serious Magnitude: identification of potential
projects and construction and Financial Capital. capacity. Additionally, the company has
injuries to employees, and Medium hazards and to remove
of new dams. one of the largest, most active marketing
also cause disruptions in such threats
campaigns in the local cement industry. By
operations.
Source: External directly engaging with dealers, distributers,
Source: Internal
suppliers, masons, drivers, the company
builds long lasting relationships throughout
the value chain and forms a loyal customer
Logistics: Commercial Risk: Likelihood: Adequate stock levels
base who recommend MLCFL portfolio.
To ensure availability of coal Due to dependency on Low have been maintained with
for uninterrupted operations. Pakistan Railways for coal Magnitude: provision of such incidents
transportation, delays can Medium in mind.
Cost reduction by using Manufactured Capital The Company, realising the importance
occur owing to strikes or
innovative production of reducing electric costs, has an active
railway breakdown.
technology. waste heat recovery plant (WHRP) at
Source: External
site which converts heat from the kiln
Source: Internal into energy, which was previously lost.
Management has Enhancements to WHRP is being made
Finance: Financial Risk: Likelihood:
addressed the risk of to reap further benefit in electric cost
To maintain strong financial Increase in cost of borrowing Low
shortage of working reduction. Furthermore, its coal fired
position and produce may adversely affect the Magnitude:
capital by availing sufficient power plant provides electricity to run its
financial performance which profitability of the Company. Medium
lines from the diversified operations at a more economic rate as
is reflective of the Company’s Payment defaults by counter
financial institutions in compared to WAPDA.
scale of business and parties may leave the
order to meet the short-
Shareholders’ expectations. Company with inadequate term finance requirements Development of human Human Capital Developing the human resource is
resources for discharging its of the company. Moreover, relations/resource. engraved in the company’s mission
own liabilities. all efforts are being made to statement and long-term objectives.
Source: External improve the average credit
Source: Internal By conducting extensive trainings and
period of the Company
along with improved through its development program, the
operation cycle. human resource add value to the company
with their professional ability, calibre and
Strong follow up and integrity.
adherence to procedures
and credit terms ensures Improvements in the Financial Capital The Company is able to capture healthy
that the risk of default from business process. profits through its ability to:
counter parties is kept to a
minimum. Adequate steps Source: Internal 1. Operate at maximum capacity
are taken for any dispute 2. Efficient cash management system
that may arise. 3. Making sound liquid investments
4. Effective control over inventory
50 51
READY TO
G. Strategy for Supply Chain Risk Management.
The supply chain risk due to environmental, social and governance incidents are monitored carefully at Maple
Leaf Cement and then mitigated through effective strategies. The company analyze the external environment
at Macro level to identify the changes occurring in the environment. After the identification of external factors
that are changing in the environment, the company short list the factors and forces that can affect the Supply
chain at any level from Raw material extraction to reaching end consumer. This helps the company to operate
in a stable condition with minimum supply chain disruption.
The Supply chain Risks faced during the Financial Year 2022-23
Supply Chain Risk Risk Involved Mitigating Strategy
Environmental Risk • Flood in the year 2022 • Maple Leaf Cement has raised
caused massive supply voice on Relevant platforms
chain disruption at two levels
• Maple Leaf has diversified the
• End Consumer: Due to sales to the central Punjab region,
the flood, the construction which is unaffected by the flood.
stopped at many areas of
South Punjab, Sindh and
KPK
• Distribution: The
transportation stopped
throughout the region
causing issue in in bound
logistics and distribution
network.
Social and Governance • Political Instability increased • Maple leaf has made its distribution
Risk in the year after the change network stronger.
in government. Pakistan
is vulnerable to social and
governance risk more than
ever.
• Transportation: The out

bound logistics are facing
challenges due to constant
road blocks and protests.
52 53
NOTICE OF ANNUAL
GENERAL MEETING
Notice is hereby given that the 63rd Annual General Meeting of the members of Maple Leaf Cement Factory
Limited (the “Company”) will be held on Thursday, October 19, 2023 at 10:00 AM at 42-Lawrence Road,
Lahore, the Registered Office of the Company, to transact the following business: -
ORDINARY BUSINESS: of similar nature to the extent of Rs. 500 million

which is valid till October 31, 2023.
Resolved further that Chief Executive Officer

and 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 the Securities and Exchange
1) To receive, consider and adopt the audited Commission of Pakistan, executing documents
accounts of the Company including consolidated all such notices, reports, letters and any other
financial statements for the year ended June document or instrument to give effect to the
30, 2023 together with the Chairman’s Review,
above resolutions.”
Directors’ and Auditors’ Reports thereon.
4) To consider and, if deemed fit, pass the following
2) To appoint Auditors for the year ending on resolution as a special resolution under Section
June 30, 2024 and fix their remuneration. The 199 of the Companies Act, 2017, with or without
Board has recommended, as suggested by the modification, as recommended by the Directors:-
Audit Committee, the appointment of M/s. A.
F. Ferguson & Co., Chartered Accountants, the “Resolved by way of special resolution that
retiring auditors who being eligible have offered consent and approval of Maple Leaf Cement
themselves for re-appointment. Factory Limited (the “Company”) be and is hereby
accorded under Section 199 of the Companies
SPECIAL BUSINESS: Act, 2017 (the “Act”) for investment in the form of
loans / advances from time to time to Maple Leaf
3) To consider and, if deemed fit, pass the following Capital Limited, an associated company, upto an
resolution as a special resolution under Section aggregate sum of Rs. 1,000 million (Rupees one
199 of the Companies Act, 2017, with or without thousand million only) for a period of one year
commencing November 01, 2023 to October 31,
modification, as recommended by the Directors:
2024 (both days inclusive) at the mark-up rate of
one percent above three months KIBOR or one
“Resolved by way of special resolution that percent above the average borrowing cost of the
consent and approval of Maple Leaf Cement Company, whichever is higher.
Factory Limited (the “Company”) be and is hereby
accorded under Section 199 of the Companies Resolved further that the Chief Executive Officer
Act, 2017 (the “Act”) for investment in the form and the Company Secretary of the Company be
of loans/advances from time to time to Kohinoor and are hereby authorized singly to take all steps
Textile Mills Limited, the holding company, upto necessary, ancillary and incidental, corporate
an aggregate sum of Rs. 1,000 million (Rupees and legal formalities for the completion of
one thousand million only) for a period of one year transactions in relation to the loans / advances to
commencing November 01, 2023 to October the associated company but not limited to filing
31, 2024 (both days inclusive) at the mark-up of all the requisite statutory forms and all other
rate of one percent above three months KIBOR documents with the Securities and Exchange
or one percent above the average borrowing Commission of Pakistan, executing documents
cost of the Company, whichever is higher. Vide all such notices, reports, letters and any other
document or instrument to give effect to the
special resolution passed in general meeting
above resolution.”
held on October 27, 2022, by the shareholders,
the Company was authorized to extend a facility
54 55
NOTES:
5) To consider and, if thought fit, pass with or substitutions to any of the foregoing as may be
without modification, addition(s) or deletion(s), required or necessary in respect of implementing, 1. The Share Transfer Books of the Company will 4. Pursuant to provisions of Section 134 of the
the following resolution as special resolution as procuring, cancellation of shares and completing remain closed from October 13, 2023 to October Companies Act, 2017, if the Company receives
recommended by the Board of Directors of the the purchase/buy-back by the Company of its 19, 2023 (both days inclusive). Physical transfers / consent from members holding aggregate 10%
Company: - issued ordinary shares and all other matters CDS Transaction IDs received at the Company’s or more shareholding, residing in geographical
incidental or ancillary thereto. Share Registrar, M/s. Vision Consulting Limited, location to participate in the meeting through
“Resolved that, subject to compliance with the 5-C, LDA Flats, Lawrence Road, Lahore, at the video conference at least seven days prior to
provisions of all applicable laws, regulations and Resolved further that all acts, deeds and actions close of business on October 12, 2023 will be the date of meeting, the Company will arrange
permission required, if any, the approval of the taken by the Authorized Person pursuant to this considered in time to determine voting rights of video conference facility in that city subject to
members of Maple Leaf Cement Factory Limited special resolution of the shareholders for and on the shareholders for attending the meeting. availability of such facility in that city.
(the “Company”) be and is hereby accorded under behalf of and in the name of the Company shall
Section 88 of the Companies Act, 2017 read be binding acts, deeds and things done by the 2. A member entitled to attend and vote at the 5. The Securities and Exchange Commission of
with the Listed Companies (Buy-Back of Shares) Company. meeting may appoint another member of the Pakistan (“SECP”) vide Circular No. 4 of 2021
Regulations, 2019, to purchase/buy-back upto Company as a proxy to attend and vote instead dated February 15, 2021, has advised to provide
Resolved further that the aforesaid special
a maximum of 100 million constituting 9.32% of of him/her. Proxy Form duly completed must participation of the members through electronic
resolution shall be subject to any amendment,
the issued ordinary shares of the face value of be deposited at the Registered Office of the means. The members can attend the Annual
modification, addition or deletion as may
Rs. 10/- (Rupees Ten) each of the Company at Company not later than 48 hours before the time General Meeting via video link using smart
be suggested, directed and advised by the
the spot / current share price prevailing during of meeting. phones / tablets. To attend the meeting through
Securities and Exchange Commission of
the purchase period. video link, members and their proxies are
Pakistan and Pakistan Stock Exchange Limited
Resolved further that the ordinary shares which suggestion, direction and advise shall be 3. Any individual beneficial owner of CDC entitled requested to register themselves by providing
purchased pursuant to this special resolution be deemed to be part of this special resolution.” to attend and vote at this meeting must bring the following information along with valid
and are hereby cancelled and issued and paid- his/her original CNIC or Passport to prove his/ copy of Computerized National Identity Card
6) To ratify and approve transactions conducted her identity, and in case of Proxy must enclose (both sides) / passport, attested copy of Board
up share capital shall accordingly be reduced by
with the Related Parties for the year ended an attested copy of his/her CNIC or Passport. Resolution/power of attorney (in case of corporate
the aggregate face value of the cancelled shares.
June 30, 2023 by passing the following special Representatives of Corporate entities should shareholders) through email at muhammad.ashraf@
Resolved further that the purchase / buy-back by resolution with or without modification: - bring Board’s resolution/Power of Attorney with kmlg.com by October 17, 2023:-
the Company of its issued ordinary shares shall be specimen signatures required for the purpose.
“Resolved that the transactions conducted with
made through Securities Exchange (Pakistan Stock
the Related Parties as disclosed in the note 45 of
Exchange Limited) by utilizing the distributable
the unconsolidated financial statements for the
profits of the Company and the purchase period
year ended June 30, 2023 and specified in the Name of Member/ Folio No. / CDC Cell No. / CNIC No. Email ID
shall be for 180 days commencing from October
Statement of Material Information under Section Proxyholder Account No. WhatsApp No.
27, 2023 and ending on April 15, 2024 (both days
134(3) be and are hereby ratified, approved and
inclusive) or if the purchase / buy-back by the
confirmed.”
Company of its issued ordinary shares is completed
before April 15, 2024, the purchase period shall 7) To authorize the Board of Directors of the
end on that date. Company to approve transactions with the
related parties for the financial year ending on
Resolved further that the Company Secretary 6. The shareholders will be allowed to exercise their of Annual Report will be provided free of cost on
June 30, 2024 by passing the following special
(hereinafter the ‘Authorized Person’) be and is right to vote through e-voting and postal ballot written request of the shareholder on Standard
resolution with or without modification: -
hereby authorized and empowered to take all subject to the requirements of Sections 143 Request Form available on website www.kmlg.
such necessary, ancillary and incidental steps “Resolved that the Board of Directors of and 144 of the Companies Act, 2017 and the com.
and to do or cause to be done all such acts, the Company be and is hereby authorized to Companies (Postal Ballot) Regulations, 2018.
deeds and things that may be required for the approve the transactions to be conducted with 9. Pursuant to requirement of Section 242 of the
purpose of giving effect to this special resolution the Related Parties on case to case basis for the 7. The notice of AGM has also been posted on Companies Act, 2017 and the Companies
and for the purpose of implementing, procuring, financial year ending on June 30, 2024. the Company’s website. Further, the notice of (Distribution of Dividends) Regulations, 2017,
cancellation of shares and completing the meeting is being dispatched to the members as provide their bank details including International
purchase/buy-back by the Company of its issued Resolved further that these transactions by the
per requirements of the Companies Act, 2017, Bank Account Number (IBAN) of 24 digits in
ordinary shares. Board shall be deemed to have been approved
on their registered address, containing the QR order to receive unclaimed e-dividends. Further,
by the shareholders and shall be placed before
Resolved further that the Authorized Person be enabled code and the weblink address to view and shareholders may contact at the Registered Office
the shareholders in the next Annual General
and is hereby further authorized and empowered download the annual audited financial statements of the Company to collect / enquire about their
Meeting for their formal ratification/approval.”
to take or cause to be taken all actions including together with the reports and documents at all unclaimed physical dividends / physical shares, if
but not limited to obtaining any requisite times. any;
regulatory permissions, if required, preparation BY ORDER OF THE BOARD
of requisite documents, engaging legal counsel, 8. The Members, who desire for receiving the annual 10. Individual Members who have not yet submitted
audited financial statements and AGM Notice a copy of their valid Computerized Identity
consultants and auditors for the purposes of
through e-mail, are requested to send their Card (CNIC) to the Company are once again
the purchase/buy-back of shares, filing of all the
updated e-mail addresses to Share Registrar of requested to send a copy of their valid CNIC at
requisite statutory forms, returns and all other
the Company. The audited financial statements the earliest directly to the office of Share Registrar
documents as may be required to be filed with
Lahore: (Muhammad Ashraf) for the year ended June 30, 2023 are available of the Company, Vision Consulting Limited, 5-C,
the regulator(s), submitting all such documents as
September 27, 2023 Company Secretary on website of the Company. However, hard copy LDA Flats, Lawrence Road, Lahore. Corporate
may be required, executing all such documents
or instruments including any amendments or
56 57
Members are requested to provide their National with CDC to place their physical shares into scrip
Tax Number (NTN) and mention the folio number less form, this will facilitate them in many ways,
thereon while sending the copies to the Share including safe custody and sale of shares, any
Registrar of the Company. In case of non-receipt time they want, as the trading of physical shares
of the copy of a valid CNIC or NTN (as the case is not permitted as per existing regulations of the
may be), the Company would be unable to Pakistan Stock Exchange Limited.
comply with the requirements of the Companies
Act, 2017 and SROs issued thereunder; 12. Members are requested to notify immediately
any change in their addresses. Shareholders
11. As per Section 72 of the Companies Act, 2017, maintaining their shares in electronic form should
every existing listed company shall be required to have their address updated with their participant
replace its physical shares with book-entry form in or CDC Investor Accounts Service.
a manner as may be specified and from the date
notified by the Commission, within a period not 13. For any query / information, the shareholders may
exceeding four years from the commencement of
the Companies Act, 2017, i.e. May 30, 2017.
contact with the Company Secretary at the above
Registered Office and / or Mr. Abdul Ghaffar
THE CUTTING EDGE
Ghaffari of Share Registrar, Vision Consulting
The shareholders having physical shareholding Limited, 5-C, LDA Flats, Lawrence Road, Lahore,
are encouraged to open CDC sub-account with Ph. Nos. (042) 36283096-97.
any of the brokers or Investor Account directly
STATEMENT UNDER SECTION

134(3) OF THE COMPANIES ACT, 2017
This statement sets out the material facts pertaining to the special business to be transacted at the
Annual General Meeting of the Company to be held on October 19, 2023.
AGENDA ITEM NO. 3 OF THE NOTICE - INVESTMENT IN KOHINOOR TEXTILE MILLS

LIMITED:
Kohinoor Textile Mills Limited (“KTML”), the holding company, having its Registered Office at
42-Lawrence Road, Lahore, is manufacturer of yarn and cloth, processing and stitching the cloth
and trade of textile products. The spinning production facilities comprise 180,144 Ring Spindles;
2,712 Open-end Rotors and 384 MVS Spindles capable of producing a wide range of yarn counts
using cotton and man-made fibers. The weaving facilities at Raiwind comprise 384 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 06, 2023 has approved
Rs. 1,000 million as loans / advances, being a reciprocal facility, to KTML on the basis of satisfactory
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.
The Directors have carried out necessary due diligence for the proposed investment and duly signed
recommendations of the due diligence report / undertaking have been kept at the Registered Office
of the Company for inspection and shall also be available for inspection of members in the general
meeting along with the latest audited and interim financial statements of the associated company.
58 59
(B) General Disclosures: -
Information under Regulation 3(1) of the Companies (Investment in Associated Ref. Requirement Information
Companies or Associated Undertakings) Regulations, 2017 (the “Regulations”). No.
3 (1) (a) Disclosure for all types of investments (i) Maximum amount of investment to be Rs. 1,000 million (Rupees one thousand million
made; only).
(A) Regarding associated company or associated undertaking: - Purpose, benefits likely to accrue to the Purpose: To earn income on the loans and/or
(ii)
investing company and its members advances to be provided to KTML from time to
from such investment and period of time for working capital requirements of KTML.
Ref. Requirement Information
investment;
No.
Benefits: The Company will receive markup
(i) Name of associated company or Kohinoor Textile Mills Limited at the rate of one percent above three months
associated undertaking; (the “KTML”) KIBOR or one percent above its average
borrowing cost, whichever is higher. This shall
(ii) Basis of relationship; KTML is a holding company of Maple Leaf benefit the Company’s cash flow by earning
Cement Factory Limited (the “Company”). profit on idle funds.
(iii) Earnings per share for the last three years; (Rupees) Period: For a period of one year from November
Year Basic Diluted 01, 2023 to October 31, 2024.
30.06.2021 9.21 9.21
30.06.2022 15.84 15.84
30.06.2023 8.05 8.05 (iii) Source of funds to be utilized for Loan and/or advance will be given out of own
As on June 30, 2023 investment funds of the Company.
(iv) Break-up value per share, based on latest
With revaluation surplus Rs. 88.19
audited financial statements;
Without revaluation surplus Rs. 75.29 where the investment is intended to be
made using borrowed funds, -
Based on the audited financial statements for (I) Justification for investment through
(v) Financial position, including main items of
statement of financial position and profit the financial year ended 30 June 2023, the borrowings; N/A
and loss account on the basis of its latest financial position of KTML is as under: - (II) Detail of collateral, guarantees
financial statements; provided and assets pledged for
Particulars Amount obtaining such funds; and
Rupees (000) (III) Cost benefit analysis;
Paid up capital 2,992,964 (iv) Salient features of agreement(s), if any, Nature Loan / advance
with associated company or associated Purpose To earn mark-up / profit on loan /
Reserves 23,401,833 undertaking with regards to the proposed advance being provided to KTML
investment; which will augment the Company’s
Total Equity 26,394,797 cash flow
Period One Year
Current liabilities 13,566,572 Rate of
Mark-up One percent above three months
Current assets 17,527,606 KIBOR or one percent above the
average borrowing cost of the
Revenue 42,046,556
Company, whichever is higher.
Gross Profit 7,480,433
Repayment Principal plus mark-up / profit
Operating Profit 5,130,900 upto October 31, 2024
Net Profit 2,407,262 Penalty @ 3-months KIBOR plus one

charges percent in addition to the
Earnings per share (Rs.) 8.05 outstanding amount(s).
60 61
No.
No.
(v) If the investment carries conversion feature
(v) Direct or indirect interest of directors, Investing Company i.e. the Company is a
i.e. it is convertible into securities, this fact
sponsors, majority shareholders and subsidiary company of KTML and Eight
along with terms and conditions including
their relatives, if any, in the associated Directors including CEO are common in both
conversion formula, circumstances in N/A
company or associated undertaking or the companies may be deemed to be interested
which the conversion may take place
the transaction under consideration; to the extent of their shareholding.
the time when the conversion may be
exercisable; and
None of the Directors or their relatives or
associates are interested in any of the above
(vi) Repayment schedule and terms and The loan / advance would be for a period of
resolution in any way except as members of the
conditions of loans or advances to be one year from November 01, 2023 to October
Company.
given to the associated company or 31, 2024 (both days inclusive). KTML will pay
associated undertaking. interest / mark-up on quarterly basis whereas
(vi) In case any investment in associated A similar nature of loan/advance facility of
repayment of principal amount shall be on or
company or associated undertaking has Rs. 500 million from time to time for working
before October 31, 2024.
already been made, the performance capital requirements has been granted by
review of such investment including the valued shareholders of the Company vide
complete information/justification for any special resolution passed in the Annual General Disclosure under Regulation 4(1)
impairment or write offs; and Meeting held on October 27, 2022 which is valid
till October 31, 2023. There is no impairment Seven Directors including Sponsors of the associated company i.e. KTML are also the members of the
and/or write off against the above facility. Company and interested to the extent of their shareholding as under: -
(vii) Any other important details necessary

Name %age of Shareholding %age of Shareholding
for the members to understand the N/A
in KTML in the Company
transaction;
Mr. Tariq Sayeed Saigol 4.7118 0.0030
3(1)(c) Investments in the form of loans / advances
Mrs. Shehla Tariq Saigol
Ref. Requirement Information (Spouse of Mr. Tariq Sayeed Saigol) 11.7117 0.0168
No.
Mr. Taufique Sayeed Saigol 16.5719 0.0015
(i) Category-wise amount of investment; Short term loan for working capital requirement
for a period of one year as dilated in preamble. Mr. Sayeed Tariq Saigol 0.1430 0.0010
Mr. Waleed Tariq Saigol 0.0124 0.0011

(ii) Average borrowing cost of the investing Average borrowing cost of the Company is
company, the Karachi Inter Bank Offered 15.09% for the year ended June 30, 2023.
Mr. Danial Taufique Saigol 0.0011 0.0005
Rate (KIBOR) for the relevant period, rate
of return for Shariah Compliant products Ms. Jahanara Saigol 0.0009 0.0002
and rate of return for unfunded facilities,
as the case may be, for the relevant Mr. Zulfikar Monnoo 0.0011 0.0003
period;
(iii) Rate of interest, mark up, profit, fees Mark-up will be charged from KTML at one
or commission etc. to be charged by percent above three months KIBOR or one
investing company; percent above the average borrowing cost of
the Company, whichever is higher.
(iv) Particulars of collateral or security to No collateral is considered necessary since

be obtained in relation to the proposed KTML is a holding company of the Company.
investment;
62 63
Disclosure under Regulation 4(2): 3(1)(a) Disclosure for all types of investments
Name of Investee Company Kohinoor Textile Mills Limited (A)Regarding associated company or associated undertaking: -
Total Investment Approved: Loan / advance upto Rs.500 million was Ref. Requirement Information
approved by members in AGM held on October No.
27, 2022 for a period of one (01) year.
(i) Name of associated company or Maple Leaf Capital Limited
associated undertaking; (the “MLCL”)
Amount of Investment Made to date: Investment has not been made yet to date.
(ii) Basis of relationship; MLCL is an associated company of Maple Leaf
Cement Factory Limited (the “Company”) by
Reasons for not having made complete The Company will provide funds to KTML from virtue of common directorship.
investment so far where resolution time to time as per working capital requirements
required it to be implemented in specified to KTML upon request. (iii) Earnings per share for the last three years; (Rupees)
time: Year Basic Diluted
30.06.2021 13.66 13.66
30.06.2022 (15.65) (15.65)
Material change in financial statements At the time of approval of loan/advances of
of associated company or associated Rs.500 million, as per latest financial statements 30.06.2023 1.91 1.91
undertaking since date of the resolution for the year ended June 30, 2022, the basic Break-up value per share, based on latest As on June 30, 2023 is Rs. 14.67
(iv)
passed for approval of investment in such earnings per share was Rs.15.84 and break-up audited financial statements;
company: value per share (without surplus) was Rs.68.25.
(v) Financial position, including main items of Based on the audited financial statements for
As per latest financial statements for the year statement of financial position and profit the financial year ended 30 June 2023, the
ended June 30, 2023, the basic earnings per and loss account on the basis of its latest financial position of MLCL is as under: -
share is Rs.8.05 and breakup value per share financial statements;
(without surplus) is Rs. 75.29. Particulars Amount
Rupees (000)
AGENDA ITEM NUMBER 4 OF THE NOTICE – INVESTMENT IN MAPLE LEAF CAPITAL LIMITED IN Paid up capital 3,015,000
THE FORM OF LOANS/ADVANCES:
Reserves 1,409,310
Maple Leaf Capital Limited (MLCL) was Rs. 1,000 million as loans / advances to MLCL
incorporated on 25 April 2014 as a public limited on the basis of financial results of MLCL subject Total equity 4,424,310
company. The authorized share capital of MLCL to approval of the members. The Company shall
is Rs. 5,000,000,000 and issued, subscribed extend the facility of loans/ advances from time to Current liabilities 2,597,983
and paid-up share capital of MLCL is Rs. time for working capital requirements to MLCL in
3,015,000,000. Kohinoor Textile Mills Limited is the accordance with an agreement in writing including Current assets 6,602,940
holding company of MLCL and owns 250,000,000 all relevant terms and conditions as prescribed in
shares (82.919%) of MLCL. the Regulations. Revenue 1,160,598
MLCL is set up with the principal object of buying, The Directors have carried out their due diligence Profit from operations 959,566
selling, holding or otherwise acquiring or investing its for the proposed investment and duly signed
capital in any sort of financial instruments including recommendations of the due diligence report / Profit after taxation 577,296
but not limited to secure debt instruments and in undertaking has been kept at the Registered
shares of leading listed and unlisted companies but Office of the Company and shall also be available Earnings Per Share Rs. 1.91
not to act as an investment/ brokerage company. for inspection of members in the general meeting
along with the latest audited and interim financial
The Board of Directors of the Company in their statements of the associated company.
meeting held on September 06, 2023 has approved
64 65
(B) General Disclosures: -
Ref. Requirement Information Ref. Requirement Information

No. No.
(i) Maximum amount of investment to be Rs. 1,000 million (Rupees one thousand million (v) Direct or indirect interest of directors, Investing Company i.e. the Company is an
made; only). sponsors, majority shareholders and associated company of MLCL and Six Directors
their relatives, if any, in the associated are common in both the companies may be
(ii) Purpose, benefits likely to accrue to the Purpose: To earn income on the loans and/or company or associated undertaking or deemed to be interested to the extent of their
investing company and its members advances to be provided to MLCL from time to the transaction under consideration; shareholding.
from such investment and period of time for working capital requirements of MLCL.
investment; None of the Directors or their relatives or
Benefits: The Company will receive markup associates are interested in any of the above
at the rate of one percent above three months resolution in any way except as members of the
KIBOR or one percent above its average Company.
borrowing cost, whichever is higher. This shall
benefit the Company’s cash flow by earning (vi) In case any investment in associated
profit on idle funds. company or associated undertaking has
already been made, the performance
Period: For a period of one year from November review of such investment including N/A
01, 2023 to October 31, 2024. complete information/justification for any
impairment or write offs; and
(iii) Source of funds to be utilized for Loan and/or advance will be given out of own
investment and funds of the Company. (vii) Any other important details necessary N/A
for the members to understand the
where the investment is intended to be transaction;
made using borrowed funds, -
(I) Justification for investment through
borrowings; N/A
(II) Detail of collateral, guarantees
3(1)(c) Investments in the form of loans / advances
provided and assets pledged for
obtaining such funds; and Ref. Requirement Information
(III) Cost benefit analysis; No.
(i) Category-wise amount of investment; Short term loan for working capital requirements
(iv) Salient features of agreement(s), if any, Nature Loan / advance
for a period of one year as dilated in preamble.
with associated company or associated Purpose To earn mark-up / profit on loan /
undertaking with regards to the proposed advance being provided to MLCL
(ii) Average borrowing cost of the investing Average borrowing cost of the Company is
investment; which will augment the Company’s
company, the Karachi Inter Bank Offered 15.09% for the year ended June 30, 2023.
cash flow.
Rate (KIBOR) for the relevant period, rate
Period One Year
of return for Shariah Compliant products
Rate of
and rate of return for unfunded facilities,
Mark-up One percent above three months
as the case may be, for the relevant
KIBOR or one percent above the
period;
average borrowing cost of the
Company, whichever is higher.
(iii) Rate of interest, mark up, profit, fees Mark-up will be charged from MLCL at one
or commission etc. to be charged by percent above three months KIBOR or one
Repayment Principal plus mark-up/ profit
investing company; percent above the average borrowing cost of
upto October 31, 2024
the Company, whichever is higher.
Penalty @ 3-months KIBOR plus one
(iv) Particulars of collateral or security to No collateral is considered necessary since
charges percent in addition to the
be obtained in relation to the proposed MLCL is an associated company of the
outstanding amount(s).
investment; Company.
66 67
Ref. Requirement Information Purchase Price: Source of Funds:
No. The shares will be purchased in cash using the
As required under Regulation 8(2) of the Buy-
distributable profits of the Company as required
(v) If the investment carries conversion feature Back Regulations, the Board of Directors has
under Section 88(8) of the Companies Act, 2017.
i.e. it is convertible into securities, this fact recommended the purchase price, for the buy-back
The Company will utilize a small portion out of its
along with terms and conditions including upto a maximum of 100 million constituting 9.32%
distributable profits which as of June 30, 2023 were
of the issued ordinary shares by the Company, at
conversion formula, circumstances in N/A Rs.25,946,716,000 based on the audited financial
the spot / current share price(s) prevailing during the
which the conversion may take place statements of the Company.
purchase period. The shares so purchased pursuant
the time when the conversion may be to this buy-back shall be cancelled and resultantly the The Board of Directors undertakes that the funds
exercisable; and issued and paid up share capital shall be reduced. required for proposed purchase / buy-back of shares
of the Company are available with the Company
(vi) Repayment schedule and terms and The loan / advance would be for a period of Justification for the purchase/Buy-Back of and after the purchase, the Company is capable
conditions of loans or advances to be one year from November 01, 2023 to October Shares: of meeting its obligations on time during the period
given to the associated company or 31, 2024 (both days inclusive). MLCL will pay upto the end of the immediately succeeding twelve
associated undertaking. interest / mark-up on quarterly basis whereas The purchase/buy-back of the Company’s issued months.
repayment of principal amount shall be on or ordinary shares will improve the earnings per
before October 31, 2024. share and book value per share of the Company Effects on Financial Position of the Company:
subsequent to the purchase of shares. Currently,
the authorized share capital of the Company is The proposed purchase / buy-back of shares of the
Disclosure under Regulation 4(1) Rs. 15,000,000,000/- divided into 1,400,000,000 Company will have positive impact on the financial
ordinary and 100,000,000 preference shares of position of the Company as the reduced capital would
Six Directors and Sponsors of associated company i.e. MLCL are also the members of the Company and Rs. 10/- each with issued, subscribed and paid- consolidate its equity resulting in increase in earnings
are interested to the extent of their shareholding as under: - up share capital of Rs. 10,733,462,320/- divided per share. The breakup value of the Company will
into 1,073,346,232 ordinary shares of Rs. 10/- also increase ultimately.
Name %age of Shareholding %age of Shareholding each. The reduced paid-up share capital would If the Company purchases the maximum of 100
in MLCL in the Company be quite sufficient for the future business needs of million issued ordinary shares of the nominal/ face
the Company. The purchase/buy-back of shares value of Rs. 10/- each, if authorized by the special
Mr. Tariq Sayeed Saigol 5.0249 0.0030 by the Company will also provide an opportunity of resolution, the issued and paid-up share capital after
exit to those members who wish to liquidate their the proposed purchase/buy-back of shares would
Mrs. Shehla Tariq Saigol investments at a reasonable price. be as under: -
(Spouse of Mr. Tariq Sayeed Saigol) 3.3167 0.0168
Mr. Taufique Sayeed Saigol 8.3748 0.0015
Mr. Sayeed Tariq Saigol - 0.0010 No. of Shares Amount (Rs.)
Mr. Waleed Tariq Saigol 0.3648 0.0011 Issued and paid-up Share Capital - Current 1,073,346,232 10,733,462,320
Mr. Danial Taufique Saigol - 0.0010 Purchase / buy-back of shares (cancellation of shares) 100,000,000 1,000,000,000
Ms. Jahanara Saigol - 0.0008 Issued and paid-up Share Capital after purchase/buy-back of 973,346,232 9,733,462,320
shares
Kohinoor Textile Mills Limited 82.9187 56.5053
The current and post shares buy-back breakup value and EPS of Company’s share considering equity as at
AGENDA ITEM NO. 5 OF THE NOTICE - BUY-BACK OF SHARES June 30, 2023 (on the basis of audited financial statements) will be as follows: -
The Board of Directors of the Company in its The shares will be purchased through Securities As Per Audited Accounts Post buy-back position as at
meeting held on September 06, 2023 has approved Exchange (Pakistan Stock Exchange Limited) within as of June 30, 2023 June 30, 2023 assuming
the purchase/buy-back by the Company upto a the purchase period starting from October 27, 2023 Amount in Rupees cancellation of shares*
maximum of 100 million constituting 9.32% of the and ending on April 15, 2024 (both days inclusive)
issued ordinary shares of the face value of Rs. 10/- i.e. a period of 180 days from the date of AGM or Equity 44,913,114,000 41,413,114,000
(Rupees Ten) each at the spot / current share price(s) if the purchase/ buy-back by the Company of its Breakup Value 41.84 42.55
prevailing during the purchase period under Sections issued ordinary shares is completed before April
EPS 4.18 4.61
88 of the Companies Act, 2017 read with the Listed 15, 2024, the purchase period shall end on that
Companies (Buy-Back of Shares) Regulations, 2019 date. The Board of Directors of the Company has
(hereinafter the ‘Buy-Back Regulations’) subject to recommended that the special resolution as set * For the sake of calculation, weighted average number of ordinary shares outstanding during the period have
been assumed to be 973,346,232 and an indicative purchase price per share has been assumed.
the approval of members of the Company through a out in the Notice to be passed at the AGM of the
special resolution. members of the Company.
68 69
Name of Parties Relationship Transactions 2023 2022
Directors Interest: 4. The shares will be purchased by the Company
(Rupees in thousand)
through Securities Exchange (Pakistan Stock
The Directors have no personal interest, directly or Exchange Limited) within the purchase period a) Kohinoor Holding Sale of goods to related party 2,142 101,341
Textile Mills Company
indirectly, in the proposed business for the purchase / starting from October 27, 2023 and ending on Limited (56.51% Purchase of fixed assets 6,022 -
equity held) Expenses paid by related party on behalf of 36,489 21,666
buy-back of issued ordinary shares of the Company April 15, 2024 (both days inclusive) i.e. a period of
the Company
except to the extent of their respective shareholdings 180 days from the date of Annual General Meeting
Expenses paid by the Company on behalf - 1,948
held by them in the Company and like other members or if the purchase / buy-back by the Company of related party
they would also be entitled to participate in proposed of its issued ordinary shares is completed before
b) Maple Leaf Subsidiary Coal provided to Subsidiary Company 5,035,036 3,819,160
purchase/buy-back of Company’s issued ordinary April 15, 2024, the purchase period shall end on Power Limited Company
(100% equity Coal received from Subsidiary Company - 572,642
shares. However, the Directors, CEO, Executives and that date. held) Long term loan from subsidiary - 1,000,000
their spouses & Associated Companies shall not,
Rent charged to subsidiary company 436 435
directly or indirectly, trade in Company’s shares till AGENDA ITEM NO. 6 OF THE NOTICE –
Purchase of goods and services (inclusive 7,142,166 6,174,121
completion of purchase. RATIFICATION AND APPROVAL OF THE RELATED of taxes)
PARTY TRANSACTIONS: Payments made by related party on behalf 5,011 109,211
Procedure for purchase/buy-back of shares of the Company
Transactions conducted with the related parties Markup paid during the year to related 287,958 93,301
party
As required under Section 88 of the Companies Act, have to be approved by the Board of Directors duly
2017 read with the Listed Companies (Buy-Back of recommended by the Audit Committee on quarterly Expenses paid on behalf of related party. 157,356 134,307
Sale proceeds from sale of vehicle - 1,890
Shares) Regulations, 2019, the following procedure basis pursuant to clause 15 of Listed Companies
Expenses paid on behalf of related party. 134,307 224,544
shall be followed for purchase/buy-back of shares of (Code of Corporate Governance) Regulations,
c) Maple Leaf Subsidiary Investment in subsidiary 10,000 -
the Company: - 2019. However, during the year since majority of Industries Company
the Company’s Directors were interested due to Limited (100% equity Due from related party 755 -
held)
1. Maple Leaf Cement Factory Limited will make their common directorships and therefore these
Public Announcement for the purchase through transactions are being placed for the approval by d) Key Key Remuneration and other benefits 456,046 255,683
management management
Securities Exchange (Pakistan Stock Exchange shareholders in the Annual General Meeting. In last personnel personnel
Limited) within two working days of the passing of Annual General Meeting of the Company, in order e) Employee benefits
the special resolution. The Public Announcement to promote transparent business practices, the Gratuity Post- Contribution 41,171 27,577
will be published in two daily newspapers, the shareholders had authorized the Board of Directors employment
benefit plan
Business Recorder and Nawa-e-Waqt, at least to approve transactions with the related parties from
Provident Employees Contribution 281,503 211,461
7 days before commencement of the purchase time-to-time on case to case basis for the year ended Fund Trust benefit fund
period which shall also be placed on website of June 30, 2023 and such transactions were deemed to
the Company. be approved by the shareholders. Such transactions The Company carries out transactions as per the The Company shall be conducting transactions with its
were to be placed before the shareholders in the next approved policy with respect to ‘transactions with related parties during the year ending on June 30, 2024
related parties’ in the normal course of business. All as per the approved policy with respect to ‘transactions
2. Members of the Company who are willing to sell annual general meeting for their formal approval/ transactions entered into with related parties require with related parties’ in the normal course of business.
the shares or part thereof held by them in Maple ratification. Accordingly, these transactions are being the approval of the Audit Committee of the Company, The majority of Directors are interested due to their
which is chaired by an Independent Director of the common directorships in the subsidiary/associated
Leaf Cement Factory Limited, may sell such placed before the shareholders in this meeting for their Company. Upon the recommendation of the Audit companies. In order to promote transparent business
shares or part thereof to the Securities Broker formal approval/ratification. Committee, such transactions were placed before the practices, the shareholders are required to authorize
through the Securities Exchange (Pakistan Stock Board of Directors for approval. the Board of Directors to approve transactions with
the related parties from time-to-time and on case
Exchange Limited) by placing a sale order through All transactions with related parties to be ratified have The nature of relationship with these related parties has to case basis for the year ending on June 30, 2024,
their Securities Broker. been disclosed in the note 45 to the unconsolidated been indicated above. The Directors are interested in which transactions shall be deemed to be approved
the resolution only to the extent of their shareholding by the Shareholders. The nature and scope of such
financial statements for the year ended June 30, 2023. and having their common directorships in such related related party transactions is explained above. These
3. The purchase shall be made through the Party-wise details of such related party transactions parties. transactions shall be placed before the shareholders
automated trading system of the Securities are given in the table below: - in the next AGM for their formal approval/ratification.
AGENDA ITEM NO. 7 OF THE NOTICE –
Exchange (Pakistan Stock Exchange Limited). AUTHORIZATION FOR THE BOARD OF The Directors are interested in the resolution only to the
DIRECTORS TO APPROVE THE RELATED PARTY extent of their shareholding and/or only their common
TRANSACTIONS DURING THE YEAR ENDING ON directorships in such related parties.
JUNE 30, 2024:
70 71
CHAIRMAN’S TECHNOLOGYAND
REVIEW
I am pleased to present the annual report and audited strategic vision of the Board from which the annual
financial statements of the Company for the year business plan is derived, as well as, projected plans for
ended 30th June, 2023 to our valued shareholders. the next five years have been set by the Management,
Significant aspects of performance of your Company covering all functional and operational areas by
have been shared with you during the course of utilization of available resources, modernization and
the financial year 2022-23. The Management of the expansion and production facilities to ensure continued
Company is encouraged by the future prospects growth in the bottom line which should hopefully result
and expects to continue to demonstrate satisfactory in high growth.
performance through its efforts and strategic directions
provided by the Board. DILIGENCE: The Board reviews the quality and
appropriateness of financial statements of the
Pursuant to requirement of the Listed Companies Company, reporting and transparency of disclosures,
(Code of Corporate Governance) Regulations, 2019, Company’s accounting policies, corporate objective
mechanism has been put in place for annual evaluation plans, budgets and other reports. The meetings of the
of the performance of the Board of Directors (the Board are held at required frequencies and agenda
“Board”) of Maple Leaf Cement Factory Limited (the along with working papers are circulated in sufficient
“Company”). The main objective of this exercise is to time prior to Board and Committee meetings.
internally evaluate the performance of the Board and
its Committees in order to facilitate the Management ADEQUATE GOVERNANCE: The Board has framed
and to play an effective role as a coordinated team the Code of Conduct which defines requisite behavior
for the success of the Company. Strategic goals for and has been disseminated throughout the Company,
the Management have been earmarked for the coming alongwith supporting policies and procedures.
year and the Board’s effectiveness is measured in the Adequate controls and robust systems are in place to
context of achievement of such objectives. Accordingly, ensure effective control environment so compliance of
the Board has completed its annual self-evaluation best policies of Corporate Governance are achieved.
for the year 2023 and I am pleased to report that the The Board sets high standards of honesty and
overall performance benchmarked on the basis of integrity which we consider are vital for success of the
criteria set for the year 2023, remained satisfactory. business.
Such assessment was based on standards set by
the Board in line with best corporate governance PRESENTATIONS: During the course of discussion
practices. and approvals of financial statements, comprehensive
presentations are placed before the Board based on
COMPOSITION OF THE BOARD: The composition incisive, critical and strategic analysis of all functional
of the Board depicts reasonable balance of executive areas relating to core business of the Company.
and non-executive Directors including independent Benchmarking compared with the industry’s peer
Directors and as a Group, possess the requisite skills, group are carried out. This practice provides ample
core competencies and industry knowledge to lead opportunity for objective analysis of the Company’s
the Company. All Board members have exercised goals and evaluation of its own financial performance
their individual business judgment and are involved in with the peer group. The Board provides appropriate
important Board decisions. directions and oversight emanated on the basis of
thorough and detailed discussions.
VISION & MISSION STATEMENTS: The Board
members are aware of the high level of ethical and
professional standards laid down in our Vision &
Mission Statements which are adopted by the
Company and fully support the same in attaining the
objectives dilated therein.
Lahore: Tariq Sayeed Saigol

STRATEGIC DECISION MAKING: Overall corporate
September 06, 2023 Chairman
strategy and objectives have been set in line with the
72 73
DIRECTORS’ REPORT
TO THE SHAREHOLDERS
During the financial year 2022-23, production and dispatches decreased in comparison to last year’s
performance, as evident from the data shown below:
In compliance with Section 227 of the Companies Act, 2017, the Directors of your Company have pleasure to
present standalone and consolidated audited financial statements for the year ended 30th June 2023.
July to June Variance
Maple Leaf Cement Factory Limited (the “Company”) is a Public Listed Company and a subsidiary of Kohinoor
Textile Mills Limited. The principal activity of the Company is production and sale of cement. 2023 2022 Change %age
--------------------M.Tons---------------
Consolidated financial highlights of the Company and its wholly-owned subsidiaries, Maple Leaf Power Limited
(MLPL) and Maple Leaf Industries Limited (MLIL) are as follows: - Production
Clinker Production 3,928,830 4,528,651 (599,821) -13.25%

Year Ended Cement Production 4,266,699 4,741,944 (475,245) -10.02%
July to June Variance
Sales
2023 2022 Amount %age
(Rupees in thousand) Domestic 4,143,452 4,651,200 (507,748) -10.92%
Net Sales Revenue 62,075,259 48,519,622 13,555,637 27.94% Exports 129,992 110,311 19,681 17.84%
Gross Profit 17,613,545 13,239,339 4,374,206 33.04%
4,273,444 4,761,511 (488,067) -10.25%
Operating Profit 13,074,467 9,797,684 3,276,783 33.44%
Finance Cost 2,380,827 1,658,272 722,555 43.57%
Profit Before Taxation 10,693,640 8,139,412 2,554,228 31.38% The Sales Volume of 4,273,444 tons depicts a decrease of 10.25% over 4,761,511 tons sold during last year.
Taxation 4,922,878 3,586,287 1,336,591 37.27% The domestic sales volume declined to 4,143,452 tons registering a decrease of 10.92% but export sales
volume up from 110,311 to 129,992 tons, increased by 17.84% from last financial year.
Profit After Taxation 5,770,762 4,553,125 1,217,637 26.74%
Earnings Per Share (Rs.) 5.38 4.15 1.23 29.64% During the year 2022-23, the Company recorded Global coal prices fell during the 3rd and 4th quarters
net consolidated sales of Rs. 62,075 million against of the financial year due to demand constraints on
Unconsolidated financial highlights of the Company are as follows: Rs. 48,520 million in the previous year. The top account of global recession and are currently fairly
line of the Company increased by 27.94% mainly comparable to locally available Afghan origin coal.
due to an improvement in selling prices in the local Further, due to import constraints caused by a lack
Year Ended market. Increase in selling prices is mainly due to of forex reserves and issues with establishing import
July to June Variance high inflationary impact on input costs especially letters of credit, the Company has been unable to
2023 2022 Amount %age fuel, power, packing material and increased interest import a significant amount of coal. Furthermore,
payments. Growth in construction sector was slower during the year, the Company relied more on Darra
than expected due to lackluster implementation of coal and other available fuels.
Net Sales Revenue 62,075,259 48,519,622 13,555,637 27.94% large-scale projects, lower utilization of PSDP budget
Gross Profit 16,423,756 12,275,466 4,148,290 33.79% and decline in expected demand in housing sector. The Company’s management launched cost-cutting
Operating Profit 12,001,415 8,924,538 3,076,877 34.48% initiatives and implemented numerous schemes in all
Finance Cost 2,750,747 1,741,026 1,009,721 58.00% The Company’s export volume increased by areas, including optimizing plant operations with a
17.84% to reach 129,992 metric tons from 110,311 specific focus on reducing fixed costs. The Company
Profit Before Taxation 9,250,668 7,183,512 2,067,156 28.78%
metric tons in previous year. Despite this increase has also significantly opted to use polypropylene
Taxation 4,758,998 3,557,172 1,201,830 33.79% in export sales compared to the last year, exports packing bags instead of paper bags to improve its
Profit After Taxation 4,491,670 3,626,340 865,325 23.86% have not increased much since the American exit cost efficiency.
Earnings Per Share (Rs.) 4.18 3.30 0.88 26.67% from Afghanistan. Cement exports to the rest of
the world were not possible due to high production The Company was able to avert the possible negative
costs in Pakistan in comparison to global markets, impact of NEPRA rate hikes by largely depending on
as well as increased shipping costs which hampered its own power generation sources, which include a
competitiveness in regional markets. coal fired power plant (CFPP), solar power plants
74 75
and waste heat recovery plant, which is the
March 2023, 21% in April 2023 and 22% in
cheapest source of electricity for the Company.
June 2023. As a result of this large rise, the
The Waste Heat Recovery Plant now accounts
Company’s finance cost increased during the
for one-third of the Company’s power mix. All
year as compared to the previous year. The
of the cost-cutting efforts outlined above have
SBP’s Temporary Economic Refinance Facility
contributed to higher margins as compared to
(TERF) and Long Term Finance Facility (LTFF)
the last year.
have provided the Company with long-term
financing at attractive mark-up rates, allowing it
Due to the aforementioned factors influencing
to purchase imported plant and machinery and
production costs, the Company achieved
establish new projects. However, SBP’s TERF
consolidated gross profit of Rs. 17,613 million
and LTFF disbursements were halted in the
during the year, a 33.04% increase from
year, preventing the Company from converting
Rs. 13,239 million in the last year.
some portion of its borrowing under both
schemes.
The Company recorded consolidated pre-tax
profit of Rs. 10,694 million for the financial year
During the year, the Company’s capacity
2022-23, a 31.38% increase from Rs. 8,139
improvement project, Line 4 (7,000 tpd), was
million in the last year. Consolidated taxation
completed and commenced production. The
amounted to Rs. 4,923 million for the reporting
project has been funded through a combination
year as compared to consolidated tax charge
of concessionary financing and internally
of Rs. 3,586 million in the corresponding year.
generated cash flows. After commencement
This major increase in taxation resulted from
of Line 4, the Company’s total capacity to
increase in profit before tax, imposition of
produce Clinker has risen to 7.8 million tons per
Super Tax @10% (2022: 4%) by the Federal
annum. This additional line also contributed to
Government through Finance Act, 2023 on
cement dispatches during the year, giving the
the earnings of financial year ended 30 June
Company a competitive edge.
2023 and increased deferred tax expense due
to imposition of Super Tax @10% (2022: 4%)
DIVIDEND
on future earnings of the Company.
It was decided to pass over dividend for the
Profits earned from Maple Leaf Power Limited
year ended June 30, 2023 as the Company
(MLPL), a wholly owned subsidiary of the
has utilized its cash generated from operations
Company, established to install and operate
to complete the dry process grey clinker
40 MW imported coal-fired captive power
production Line 4 of 7,000 tons per day.
plant are exempt from charge of income
Further, due to rising trend in interest rates,
tax. However, partial tax charge pertains to
the Company has prepaid some portion of its
other income. MLPL has earned net profit
long-term financing. This will give the Company
of Rs. 1,287 million during the financial year
a fiscal space to cope with the continuous
2022-23. MLPL operations have favourably
increase in interest rates and other inflationary
impacted consolidated results by yielding
factors. Future prospects of dividend hinges
substantial savings in power cost.
on the likelihood of improved demand and
increase in cement prices in the local market
The above factors have impacted post-tax
to absorb sharp uptick in input costs. Overall
bottom line for the reporting year to register
improved economic and dispatch conditions
an increase of 26.74% at a profit of Rs. 5,771
will favorably impact prospects of dividend
million against consolidated profit of Rs. 4,553
payments in future.
million in the bottom line for corresponding
year.
ADEQUACY OF INTERNAL CONTROL
The State Bank of Pakistan (SBP) reviewed
The Board of Directors is aware of its
the monetary policy rate numerous times
responsibility with respect to internal controls
throughout the year, increasing it from 13.75%
environment and accordingly has established
to 15.00% in July 2022, 16.00% in November
an efficient system of internal financial controls
2022, 17% in January 2023, 20.00% in
for ensuring effective and efficient conduct of
76 77
operations, safeguarding of Company assets, compliance with applicable laws
and regulations and reliable financial reporting. The independent Internal Audit
function of the Company regularly appraises and monitors the implementation of
financial controls, whereas the Audit Committee reviews the effectiveness of the
internal control framework and financial statements on quarterly basis.
MANAGEMENT’S RESPONSIBILITY TOWARDS PREPARATION AND

PRESENTATION OF FINANCIAL STATEMENTS
The Management is aware of its responsibility for the preparation and fair
presentation of the financial statements in accordance with the accounting and
78 79
CHANGE IN NATURE OF BUSINESS IMPACT ON THE ENVIRONMENT AND OUR
reporting standards as applicable in Pakistan and and global recession in international markets could MITIGATING EFFORTS TO CONTROL INDUSTRY
the requirements of the Companies Act, 2017 (XIX of put pressure on cement input costs. Given Pakistan’s No change has occurred during the financial year EFFLUENTS
2017) and for such internal control as management economic situation, import restrictions are unlikely to concerning the nature of the business of the Company
determines is necessary to enable the preparation lift in the near future. As a result, in order to limit this or of its subsidiaries, or any other Company in which Traditionally, cement plants are assumed to be lacking
of financial statements that are free from material impact and reduce the risk of currency depreciation, the Company has interest. environment friendliness but the Company has
misstatement, whether due to fraud or error. the Company has expanded its reliance on local coal. installed most modern and state of the art equipment
The Company’s finance costs will rise further in the NON-FINANCIAL PERFORMANCE to control industry effluents. In order to mitigate
AUDITORS coming year as a recent consequence of increase the effects of industrial effluents on surrounding
in SBP’s interest rates. To avoid future power sector Quality, customer’s satisfaction, employee’s environment, the Company is putting forth all efforts
The auditors of the Company, M/s. A. F. Ferguson arrears, the government aims to raise electricity rates development and professional standards are for providing healthy environment to employees
& Co., Chartered Accountants, in their independent and streamline fuel price increases in response to Company’s key areas where management has taken and the community. In this regard following major
auditor’s report on financial statements of the rising pressure from the IMF. As a result, National necessary measures to improve them. The Company environment friendly efforts are carried out by the
Company for the year have expressed an unqualified Grid tariffs are projected to climb further, resulting in is currently producing and supplying high-quality Company: -
opinion on the state of affairs of the Company. higher power expenses for the Company. To offset products which ensure maximum satisfaction to
the aforementioned cost escalation concerns, the the customers. During the year, the Company has i. Regular monthly environmental monitoring for
The Board has recommended, as suggested by Company is focusing on enhancing renewable energy conducted various performance appraisals for the stack emissions and effluents complying with
the Audit Committee, the appointment of M/s. A. F. resources, particularly solar generation in order development of existing human capital. The Company Natural Environmental Quality Standards.
Ferguson & Co., Chartered Accountants, the retiring to reduce reliance on the National Grid to a bare is maintaining a highly satisfactory relationship with
minimum. all stakeholders. The Company has formed various ii. The Company has state of the art FLSmidth A/S
auditors who being eligible, have offered themselves
committees which are responsible for the effective cement manufacturing technology, equipped
for re-appointment for the ensuing year, subject to
BUSINESS RATIONALE OF CAPITAL monitoring of key areas. with world class dust collection electrostatic
approval of the members in the forthcoming Annual
EXPENDITURE / ONGOING EXPANSIONS OF precipitators and bag filters for environment
General Meeting.
THE COMPANY CORPORATE SOCIAL RESPONSIBILITY protection.
DEFAULT OF PAYMENTS, DEBT/LOAN, TAXES iii. Massive Tree Plantation Program is being
The Company is investing in sustainability and The Company acknowledges its responsibility
AND LEVIES towards society and performs its duty by providing constantly undertaken for maintaining healthy
renewable energy with installation of solar energy
projects at its plant site. The Company has installed financial assistance to projects for society and green environment as a part of Corporate
Adhering to the best business practices, the Company development by various charitable institutions on Social Responsibility in coordination with District
2 solar power plants of 5 MW and 7.5 MW during the
recognizes its responsibility of timely repayments consistent basis. The Company has been recognized Officer (Environment), Mianwali.
financial year 2021-22. In addition to the existing total
of due amounts. No default on payment of loan/ by the Pakistan Centre for Philanthropy as a leader in
of 12.5 MW solar power capacity, the Company is
debts was recorded during the year under review. social and charitable contributions and strives to be iv. The Company has its own hospital and trauma
now on the way to add another 7.5 MW to provide
Furthermore, no payment on account of taxes, duties a constructive member of the communities in which centre at plant site. Keeping in view the
power to the factory through a total of 20 MW of solar
and levies is overdue or outstanding at financial year power. Letter of credits are opened for importing solar it has a presence. occupational health of employees, regular first-
end. plant equipment of 7.5 MW. aid and CPR training programs are conducted to
The Company has contributed in medical social ensure safe health of workers.
FUTURE OUTLOOK The Company has recently installed dry process sciences project and in this regard, the Company’s
Board of Directors and the Board of the Holding In recognition of Company’s effort to promote
clinker production Line-4 having capacity of 7,000
Going forward, cement demand in the domestic Company jointly donated towards construction of environment friendly practices, The Professionals
metric tons per day. The said production line has
market may further record a decline. The Cement Admin Block at Al-Aleem Medical College in Gulab Network has declared Maple Leaf Cement Factory
commenced production in FY 2022-23 and expected
Devi Chest Hospital (GDCH), Lahore. The project Limited as winner of 7th International Awards on
sector is facing a rather precarious situation wherein to significantly bolster the top line figures of the
achieved completion during the year. Environment, Health & Safety for the year 2021.
multiple risks in the shape of major factors including Company in next financial year.
devaluation of Pak Rupee against USD, high inflation PRINCIPAL RISKS, CHALLENGES AND
which also effects purchasing power of the public, The Company has completed its expansion of existing The Company has also contributed in the past for
medical social service projects and in this regard the UNCERTAINTIES
political uncertainty, increase in interest rates and Waste Heat Recovery Plant which has increased to
a total capacity of 37 MW including WHRP of new Company donated a state-of-the-art Cardiac facility
aggressive taxation measures are affecting its The major risks and challenges faced by the Company
installed Line 4, resulting in substantial saving in to the Gulab Devi Chest Hospital (GDCH) in Lahore by
profitability. These factors have severe impact on are as follows: -
power cost. building Sayeed Saigol Cardiac Complex at GDCH.
cement manufacturers margins.
i. Rupee devaluation and escalation of coal prices
SUBSEQUENT EVENTS Kohinoor Maple Leaf Group has received “13th in the international market squeezing profit
Import restrictions due to a lack of foreign exchange Corporate Social Responsibility National Excellence
reserves, excessive sea freight on account of high oil margins.
There has been no considerable subsequent events Award” on account of its performance of various ii. Lacklustre margin on export sales, barriers
cost, the depreciation of the Pakistan rupee versus social obligations.
after the closing of Financial Year 2022-23. erected by cement importing countries and anti-
the US dollar, unfavorable macroeconomic indicators
dumping duty imposed by South Africa.
80 81
iii. High interest rates. that routinely discuss key issues and risks to come up
iv. High fuel rates. with the most forward approach. In response to the cuts
v. Overall inflationary increase in operational in PSDP allocation and low margins in export markets,
expenses. marketing team under the guidance of Management
vi. Head on competition amongst cement launched an effective brand awareness strategy to
manufacturers on price as well as sales owing increase presence in previously untapped local markets
ambitious capacity additions. and make Maple Leaf Cement Factory Limited a well-
vii. Impact of devastating floods which have hit large known trustworthy brand amongst developers, dealers
parts of the country. and house consumers. To cater to overall inflation, cost
saving measures were implemented throughout the
The Organization is effectively equipped to face any year. To reduce finance cost, short term borrowings
challenges and uncertainties that are likely to arise. were brought down by effectively utilizing operating
Through combined experience, skill and effective cash flows and by reduction in operating cycle. To
business reporting, Management is always aware of face vigorous competition, Management ensures that
internal and external developments. The Company has the capacity to produce and to sell is fully utilized to its
formulated unique specialised cross functional teams utmost potential.
82 83
APPROPRIATIONS
OF STRENGTH
AND
Distribution of Profit after tax for the Company (standalone) for the year is as under: -
DESCRIPTION 2023 2022
-----Rs. in ‘000’-------
Profit After tax 4,491,670 3,626,340
Dividend - -
Balance Transferred to Retained Earnings 4,491,670 3,626,340
LEADERSHIP STRUCTURE
COMPOSITION OF THE BOARD OF DIRECTORS & COMMITTEES:
Total Number of Directors:
a) Male .............................................................. 8
b) Female .......................................................... 1
Composition:
1 Independent Directors 2
2 Other Non-Executive Directors 4
3 Executive Directors (including CEO) 2
4 Female Director (Non-Executive Director) 1
DIRECTORS AND BOARD MEETINGS

By virtue of election of Directors held during the year and pursuant to requirement of the Companies Act, 2017
and Listed Companies (Code of Corporate Governance) Regulations, 2019, the following Board of Directors
was re-constituted.
During the year under review, five meetings of the Board of Directors were held in Pakistan and no Board
meeting was held outside Pakistan. The attendance of each Director was as under.
CATEGORY NAME MEETINGS ATTENDED
Independent Directors Mr. Shafiq Ahmed Khan 4

Mr. Zulfikar Monnoo 5
Other Non-Executive Directors Mr. Tariq Sayeed Saigol - Chairman 5

Mr. Taufique Sayeed Saigol 5
Mr. Waleed Tariq Saigol 4
Mr. Danial Taufique Saigol 5
Executive Directors Mr. Sayeed Tariq Saigol 5

Chief Executive Officer
Syed Mohsin Raza Naqvi 5
Female Director
Non-Executive Director Ms. Jahanara Saigol 2
Leave of absence was granted to the Director who could not attend the Board Meeting.
84 85
Pursuant to requirement of the Listed Companies (Code of Corporate Governance) Regulations, 2019, the
following committees were also re-constituted: -
AUDIT COMMITTEE
Four meetings of the Audit Committee were held during the financial year and attendance of each Member
was as under: -
NAME DESIGNATION MEETINGS ATTENDED
Mr. Shafiq Ahmed Khan Chairman (Independent Director) 4

Mr. Zulfikar Monnoo Member (Independent Director) 4
Mr. Waleed Tariq Saigol Member (Non-Executive Director) 2
Mr. Danial Taufique Saigol Member (Non-Executive Director) 4
Leave of absence was granted to the Member who could not attend the Audit Committee Meeting.
Mr. Shafiq Ahmed Khan, the Chairman Audit Committee attended the last AGM held on October 27, 2022.
Board Annually Evaluates the performance of Board Committees including Audit Committee.
HUMAN RESOURCE & REMUNERATION COMMITTEE
NAME DESIGNATION
Mr. Shafiq Ahmed Khan Chairman (Independent Director)

Mr. Zulfikar Monnoo Member (Independent Director) The details of the remuneration paid to the Directors including Chairman and Chief Executive of the Company
Mr. Danial Taufique Saigol Member (Non-Executive Director) is disclosed in Note 46 of the Standalone Financial Statements.
One meeting of Human Resource & Remuneration Committee was held on November 18, 2022 and all PATTERN OF SHAREHOLDING
members attended the meeting.
Pattern of shareholding of the Company in accordance with the Companies Act, 2017 as at June 30, 2023 is
The Board would consider to constitute the Nominee Committee and Risk Management Committee and annexed.
compliance will be made in due course.
ACKNOWLEDGEMENT
DIRECTORS’ REMUNERATION
The Board takes this opportunity to express its deep sense of gratitude and thanks to the shareholders,
The Board of Directors has approved a ‘Directors’ Remuneration Policy’, the salient features of which are: employees, customers, bankers and other stakeholders for the confidence and faith they have always reposed
• No Director shall determine his/her own remuneration. in us.
• Meeting fee of a Director other than regular paid Chief Executive, Sponsors and / or family Directors For and on behalf of the Board
and full time working Director(s), shall be net of tax amounting to Rs. 100,000/- (Rupees one hundred
thousand only) per meeting or as time to time determined by the Board for attending the Board and
Rs. 10,000/- (Rupees ten thousand only) for its Committee meetings.
• Any tax obligation against such payment applicable for the time being and/or amended hereinafter shall
be borne by the Company.
Syed Mohsin Raza Naqvi Tariq Sayeed Saigol
• The Directors shall be entitled to be paid all reasonable expenses, including travelling, hotel charges and Lahore: September 06, 2023 Director on Behalf of CEO
other expenses incurred by them for attending meetings and for other business conducted for and on
behalf of the Company.
The Chief Executive Officer is for the time being not available in Pakistan so the Board has authorized Mr. Tariq
Sayeed Saigol - Director to sign the Directors’ Report for the year ended 30th June 2023.
86 87
STATEMENT OF
COMPLIANCE
WITH THE LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE) Sr. Name of Directors Qualification & Years of Experience
REGULATIONS, 2019 (THE “REGULATIONS”) 1. Mr. Tariq Sayeed Saigol Exempted from Directors’ Training Program.
He is Director in Kohinoor Textile Mills Limited (KTML) since 1971 and

Name of Company: Maple Leaf Cement Factory Limited was graduated from Government College University, Lahore, following
Year Ended: June 30, 2023 which he studied Law at University Law College, Lahore.
This Company has complied with the requirements of the Regulations in the following manner:- 2. Mr. Sayeed Tariq Saigol Director in KTML since 1998.
He graduated from McGill University with a degree in management.

1. The total number of Directors are Nine (9) as per the following composition:
3. Mr. Taufique Sayeed Saigol Exempted from Directors’ Training Program.
Male: 8
He is Director in KTML since 1976 and graduated as an Industrial
Female: 1 Engineer from Cornell University, USA in 1974.
2. The Composition of the Board is as follows: - 4. Mr. Waleed Tariq Saigol Director of the Company since 2004.
He holds a bachelor’s degree in Political Science from the London School

i. Independent Directors 02 of Economics & Political Science.
ii. Non-Executive Directors 04
iii. Executive Directors (including CEO) 02 5. Mr. Danial Taufique Saigol Certificate obtained for Directors’ Training Program.
iv. Female Director (Non-Executive) 01
He began his career with KMLG in January 2012 as Executive Director.
He holds a bachelor’s degree in Finance from McGill University, Montreal,
Determination of number of independent Directors comes to 2.66 (rounded to 2) which is based on Canada.
Eight Elected Directors, excluding CEO who is considered as deemed director. The fraction contrived
6. Ms. Jahanara Saigol Appointed on the Board of the Company on December 31, 2019.
in one-third number is not rounded up as the two elected independent directors have requisite
competencies, skills, knowledge and experience to discharge and execute their duties competently, She has completed PhD in Islamic Art and Architecture at SOAS,
as per applicable laws and regulations. As they fulfill the necessary requirements as per applicable University of London. She has also obtained degrees in MA, SOAS,
laws and regulations, hence, appointment of a third independent director is not warranted; University of London and M. St, University of Oxford.
Directors’ Training Program is non-mandatory and compliance will be

3. The Directors have confirmed that none of them is serving as a Director on more than seven listed made in due course.
companies, including this Company;
7. Mr. Shafiq Ahmed Khan Director in Trust Investment Bank Limited from 1997 to 2009 and Director
4. The Company has prepared a Code of Conduct and has ensured that appropriate steps have been in KTML from 2014 to April 2023.
taken to disseminate it throughout the Company along with its supporting policies and procedures; He got his bachelor degree from Punjab University and has experience
over 36 years in different fields of finance.
5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies
of the Company. The Board has ensured that complete record of particulars of the significant policies 8. Mr. Zulfikar Monnoo Director in Rafhan Maize Product Co. Limited since 1990 and certificate
obtained for Directors’ Training Program.
along with their date of approval or updating is maintained by the Company;
He is a businessman with experience of more than three decades as
The policies namely, communication and disclosure, code of conduct for members of Board of a director having degree of bachelor in science and economics with a
Directors, Senior Management and other employees, risk management and internal control exist in the major in finance from University of Pennsylvania -Wharton School.
Company’s record and shall be uploaded on the Company’s website in due course. 9. Syed Mohsin Raza Naqvi Certificate obtained for Directors’ Training Program.
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been Mr. Mohsin Naqvi is Fellow Member of the Institute of Chartered
taken by the Board / Shareholders as empowered by the relevant provisions of the Companies Act, Accountants of Pakistan with more than three decades of Financial
2017 (the “Act”) and these Regulations; Management experience.
The Company has planned to arrange Directors’ Training Program certification for female executives
7. The meetings of the Board were presided over by the Chairman. The Board has complied with the and head of departments over the next few years.
requirements of the Act and the Regulations with respect to frequency, recording and circulating
10. During the year, there was no any such appointment of the Chief Financial Officer, the Company
minutes of meetings of the Board;
Secretary and the Head of Internal Audit;
8. The Board has a formal policy and transparent procedures for remuneration of Directors in accordance
The Head of internal audit does functionally report to the Audit Committee and administratively to
with the Act and these Regulations;
the CEO; however, it is pertinent to mention that any performance appraisals as well as increments/
detriments in his remuneration package are solely vested with the CEO instead of the same in
9. Three Directors have obtained certificate for Directors’ Training Program and Five Directors are exempt
conjunction with the Chairman, Audit Committee; this is evident as per his appointment resolution.
from this due to 14 years of education and 15 years of experience on the Boards of listed companies
as under: -;
11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before
approval of the Board;
88 89
12. The Board has formed committees comprising of members given below:
a) Audit Committee INDEPENDENT AUDITOR’S REVIEW REPORT
NAME DESIGNATION TO THE MEMBERS OF MAPLE LEAF
Mr. Shafiq Ahmed Khan Chairman (Independent Director)
Mr. Zulfikar Monnoo Member (Independent Director) CEMENT FACTORY LIMITED
Mr. Waleed Tariq Saigol Member (Non-Executive Director)
Mr. Danial Taufique Saigol Member (Non-Executive Director) REVIEW REPORT ON THE STATEMENT OF COMPLIANCE CONTAINED IN LISTED COMPANIES
(CODE OF CORPORATE GOVERNANCE) REGULATIONS, 2019
b) Human Resource & Remuneration Committee
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate
NAME DESIGNATION
Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of Maple Leaf Cement
Mr. Shafiq Ahmed Khan Chairman (Independent Director) Factory Limited (the Company) for the year ended June 30, 2023 in accordance with the requirements of
Mr. Zulfikar Monnoo Member (Independent Director) regulation 36 of the Regulations.
Mr. Danial Taufique Saigol Member (Non-Executive Director)
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company.
c) Nomination Committee: Currently, the Board has not constituted a separate nomination committee Our responsibility is to review whether the Statement of Compliance reflects the status of the Company’s
and the functions are being performed by the human resource and remuneration committee. The compliance with the provisions of the Regulations and report if it does not and to highlight any non-compliance
Board would consider to constitute nomination committee and compliance will be made in due course;
with the requirements of the Regulations. A review is limited primarily to inquiries of the Company’s personnel
d) Risk Management Committee: Currently, the Board has not constituted a risk management and review of various documents prepared by the Company to comply with the Regulations.
committee and senior officers of the Company perform the requisite functions and apprise the Board
accordingly. The Board would consider to constitute risk management committee and compliance will As a part of our audit of the financial statements we are required to obtain an understanding of the accounting
be made in due course; and internal control systems sufficient to plan the audit and develop an effective audit approach. We are
13. The terms of reference of the aforesaid committees have been formed, documented and advised to not required to consider whether the Board of Directors’ statement on internal control covers all risks and
the committees for compliance; controls or to form an opinion on the effectiveness of such internal controls, the Company’s corporate
governance procedures and risks.
14. The frequency of meetings of the committees were as per following:
The Regulations require the Company to place before the Audit Committee, and upon recommendation
MEETINGS FREQUENCY
of the Audit Committee, place before the Board of Directors for their review and approval, its related party
Audit Committee Four meetings were held during the financial year. transactions. We are only required and have ensured compliance of this requirement to the extent of the
approval of the related party transactions by the Board of Directors upon recommendation of the Audit
Human Resource and Committee.
Remuneration Committee One meeting was held during the financial year.
Based on our review, nothing has come to our attention which causes us to believe that the Statement
15. The Board has set up an effective internal audit function with suitably qualified and experienced staff of Compliance does not appropriately reflect the Company’s compliance, in all material respects, with the
for the purpose and who are also conversant with the policies and procedures of the Company; requirements contained in the Regulations as applicable to the Company for the year ended June 30, 2023.
16. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating
under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan (ICAP)
and registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance
with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the
ICAP and that they and the partners of the firm involved in the audit are not a close relative (spouse,
parent, dependent and non-dependent children) of the Chief Executive Officer, Chief Financial Officer, A. F. Ferguson & Co.
Head of Internal Audit, Company Secretary or Director of the Company; Chartered Accountants
Lahore
17. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the Act, these Regulations or any other regulatory requirement and Date: September 16, 2023
the auditors have confirmed that they have observed IFAC guidelines in this regard; and
18. We confirm that all requirements of the regulations 3,6,7,8,27,32,33 and 36 of the Regulations have UDIN: CR202310070hs7mFDeGf
been complied with.
A. F. FERGUSON & Co., Chartered Accountants, A Member Firm of the PwC network
308-Upper Mall, Shahrah-e-Quaid-e-Azam, P.O. Box 39, Lahore-54000, Pakistan.
Tariq Sayeed Saigol Tel: +92 (42) 3519 9343-50 / Fax: +92 (42) 3519 9351 www.pwc.com/pk
Lahore: September 06, 2023 Chairman
Karachi Lahore Islamabad
90 91
BRIEF PROFILE
OF DIRECTORS
MR. TARIQ SAYEED SAIGOL MR. SAYEED TARIQ SAIGOL

(CHAIRMAN / DIRECTOR) (CHIEF EXECUTIVE OFFICER / DIRECTOR)
OTHER ENGAGEMENTS OTHER ENGAGEMENTS

Kohinoor Textile Mills Limited Maple Leaf Power Limited
CHAIRMAN / DIRECTOR Maple Leaf Power Limited CHIEF EXECUTIVE / DIRECTOR
Maple Leaf Industries Limited
Kohinoor Textile Mills Limited

DIRECTOR
Maple Leaf Capital Limited
Mr. Tariq Sayeed Saigol is the merce and Industry for 1995-97 Board of Governors of Chand-
Chairman of Kohinoor Maple and Chairman of All Pakistan bagh School, Founder Trustee
Leaf Group (KMLG). He is a Cement Manufacturers Associ- of Textile University of Pakistan,
Mr. Sayeed Tariq Saigol is the Chief Executive of Maple Leaf Cement, Maple Leaf Power Ltd and Maple Leaf
member of the reputed Saigol ation from 2003-2006. member of the Syndicate of Uni-
Industries Limited. He graduated from McGill University with a degree in management. Mr. Sayeed Saigol
Family who pioneered in textile versity of Health Sciences and
also has several years of work experience in the textile industry. Prior to joining Maple Leaf Cement, he was
manufacturing after partition Mr. Saigol was a member of the Member of Board of Governors
involved in setting up and managing an apparel dyeing company. He is a member of the Board of Governors
and later ventured into the finan- Federal Export Promotion Board of Aitchison College, Lahore. He
of the Lahore University of Management Sciences.
cial sector, chemicals, synthetic and Central Board of State Bank presently serves on the Man-
fibres, sugar, edible oil refining, of Pakistan. He has also served aging Committee, Gulab Devi
civil engineering, construction, on several Government Com- Chest Hospital, Lahore.
cement and energy. missions and Committees on a
number of subjects, including In recognition of his contribution,
Mr. Saigol was schooled at Export Promotion, reorganiza- he was conferred with the civil-
Aitchison College, Lahore and tion of WAPDA and EPB, Right ian award, Sitara-e-Isaar by the
graduated from Government Sizing of State owned Corpo- President of Pakistan in 2006.
College University, Lahore, fol- rations and Resource Mobiliza- MR. TAUFIQUE SAYEED SAIGOL
lowing which he studied Law at tion. He is the author of “Textile He is a keen golfer and has rep- (DIRECTOR)
University Law College, Lahore. Vision 2005” which was adopt- resented Pakistan at Golf in Sri
ed by the Government in 2000 Lanka and Pakistan in 1967. OTHER ENGAGEMENTS
He started his career in 1968 at and also its critique prepared
Kohinoor’s Chemical Complex in 2006. He also served as a CHIEF EXECUTIVE / DIRECTOR Kohinoor Textile Mills Limited
at Kala Shah Kaku. Upon tri- member of the Central Board
furcation of the Group in 1976, of State Bank of Pakistan for a CHAIRMAN / DIRECTOR Maple Leaf Capital Limited
he became Chief Executive of second term in 2007 and was a
Kohinoor Textile Mills Limited, member of the Prime Minister’s Maple Leaf Power Limited
DIRECTOR Maple Leaf Industries Limited
Rawalpindi. Since 1984, he has Economic Advisory Council es-
been Chairman of Kohinoor Ma- tablished in 2008.
ple Leaf Group which has inter-
ests in textiles, cement manu- He takes keen interest in the Mr. Taufique Sayeed Saigol is the Chief Executive of Kohinoor Textile Mills Limited and Director in all KMLG
facturing and energy. development of education and companies. He is a leading and experienced industrialist of Pakistan. He graduated as an Industrial Engineer from
health care in Pakistan. He has Cornell University, USA in 1974. He has widely travelled and his special forte is in the export business.
He remained Chairman of All been a member of the Board
Pakistan Textile Mills Associa- of Governors of Lahore Uni- He is a business man of impeccable credibility and vision and has substantial experience of working in different
tion from 1992 to 94, President versity of Management Scienc- environments.
of Lahore Chamber of Com- es, Founding Chairman of the
92 93
BRIEF PROFILE
OF DIRECTORS
MR. WALEED TARIQ SAIGOL MS. JAHANARA SAIGOL

(DIRECTOR) (DIRECTOR)
OTHER ENGAGEMENTS OTHER ENGAGEMENTS

Kohinoor Textile Mills Limited
Maple Leaf Power Limited Kohinoor Textile Mills Limited
CHIEF EXECUTIVE / DIRECTOR DIRECTOR
Maple Leaf Industries Limited Maple Leaf Capital Limited
TRG Pakistan Limited
CHIEF EXECUTIVE / DIRECTOR Maple Leaf Capital Limited

Ms. Jahanara Saigol is daughter of renowned industrialist, Mr. Tariq Sayeed Saigol who is the Chairman of
Kohinoor Maple Leaf Group. She has completed PhD in Islamic Art and Architecture at SOAS, University of
London. She has also obtained degrees in MA, SOAS, University of London and M. St, University of Oxford.
Mr. Saigol was schooled at Aitchison College, Harrow School and holds a bachelor’s degree from the London
School of Economics & Political Science. He has a rich experience of Textile & Cement Sectors and is currently
the Chief Executive Officer and Director of Maple Leaf Capital Limited (MLCL). Over the years, he has acquired
deep insight in capital market activities. His expertise of capital market operations has helped MLCL to become
one of the leading investment management companies in the country.
He serves on the Boards of Kohinoor Textile Mills Limited, Maple Leaf Cement Factory Limited, Maple Leaf
Power Limited and Maple Leaf Industries Limited. He is also a Member of Audit Committees of both the
listed companies of Kohinoor Maple Leaf Group and is keenly involved in formulation of vision, strategies
and governance structures of these companies. His valuable deliberations and able guidance are considered
valuable assets.
He is a keen golfer and has won several tournaments in Pakistan. MR. SHAFIQ AHMED KHAN
(INDEPENDENT DIRECTOR)
MR. DANIAL TAUFIQUE SAIGOL

(DIRECTOR)
Mr. Shafiq Ahmed Khan got his bachelor degree from Punjab University and joined Habib Bank Limited at entry
OTHER ENGAGEMENTS level in 1968 and spent over a period of 24 years in order to become Executive Vice President while performing
in different areas of services. He spent a period of five years in Fidelity Investment Bank Limited, Lahore, as
first President & CEO of a major investment bank in the country and guided with sound business and risk
Kohinoor Textile Mills Limited management.
Maple Leaf Capital Limited
DIRECTOR
Maple Leaf Power Limited Since 1996 to 2005, he has been associated with Pakistan’s largest private sector commercial bank as Senior
Executive Vice President / Group Head and taken responsibilities for devising and implementing business
strategies for MCB Bank Limited. He also served on the Board of Trust Investment Bank Limited from 1997 to
2009. Over the course of 36 years in a career, he used up in domestic and international market with all necessary
skills for developing & implementing successful strategies for institutions’ businesses across geographical
Mr. Danial Taufique Saigol is the younger son of Mr. Taufique Sayeed Saigol, CEO of KTML. Danial segments particularly in banking relationships and enjoy sound relationships with regulatory authorities in various
began his career with KMLG in January 2012 as Executive Director. He holds a bachelor’s degree in countries. Currently, being an Independent Director, he is the Chairman of Audit Committee as well as Human
Finance from McGill University, Montreal, Canada. He is currently posted at Kohinoor Textile Mills, Resource and Remuneration Committee of the Company.
Rawalpindi.
94 95
BRIEF PROFILE CORPORATE
OF DIRECTORS BRIEFINGS
MR. ZULFIKAR MONNOO MATTERS DECIDED AND DELEGATED BY ANNUAL EVALUATION OF BOARD
(INDEPENDENT DIRECTOR) BOARD OF DIRECTORS PERFORMANCE
Matters Decided by the Board of Directors The Board has set a criterion based on emerging and
OTHER ENGAGEMENTS leading practices to assist in the self-assessment of an
Kohinoor Textile Mills Limited The Board of Directors approves overall corporate individual director and the full Board’s performance. It
DIRECTOR Unilever Pakistan Foods Limited, strategy which is in line with Company’s Vision. All is not intended to be all-inclusive. When completing
Rafhan Maize Products Co. Limited the Strategic Decisions of the Company are taken the performance evaluation, Board considers the
by the Board. As sanctioned by the Companies Act following main performance evaluation process or
DIRECTOR / CHIEF EXECUTIVE Pakwest Industries (Pvt.) Limited 2017 and authorised by Articles of Association of the behaviour:
Company, following decisions are taken by the Board
namely: - i. Adequate Board composition.
Mr. Zulfikar Monnoo joined the Board of Unilever Pakistan Foods Limited when the company was formed. He is ii. Satisfactory processes and procedures for Board
• Issue of shares;
past Chairman and now a member of both the Audit and the HR& R Committees. meetings.
• Buy-back of shares;
He is also Director of Rafhan Maize Products Co. Limited since 1990 and a member of both the Audit and the iii. The Board sets objectives and formulates an
HR& R Committees. • Make borrowings in the form of loans, debentures, overall corporate strategy.
leasing contracts or redeemable capital;
He is the Chief Executive of Pakwest Industries (Pvt.) Ltd., Lahore. He is an alumni of The Wharton School, iv. The Board has set up adequate number of its
University of Pennsylvania and Aitchison College, Lahore. • Investment of funds of the company; committees.
He is a businessman with experience of more than three decades as a director having degree of bachelor in • Approval of financial statements; v. Each Director has adequate knowledge of
science and economics with a major in finance from University of Pennsylvania – Wharton School. He obtained economic and business environment in which the
• Approval of bonus to employees;
Directors’ Training certification from Pakistan Institute of Corporate Governance in 2012. His special expertise/ company operates.
specialized skills are Finance & Accounting, Human Resource, sales and has industrial experience in food & • Incurring capital expenditure and disposal of fixed vi. Each Board member contributes towards effective
textile ingredient manufacturing as well as artificial leather (coated fabrics). assets; and robust oversight.
• Declaration of interim dividend; vii. The Board has established a sound internal
SYED MOHSIN RAZA NAQVI • Provision / Writing off bad debts, advances and control system and regularly reviews it.
(DIRECTOR / GROUP DIRECTOR FINANCE / receivables; viii. The Board reviews the Company’s significant
CHIEF FINANCIAL OFFICER) accounting policies according to the adequate
• Writing off other assets of the company;
financial reporting regulatory framework.
OTHER ENGAGEMENTS • To determine the terms of and the circumstances
ix. The Board considers the quality and
Kohinoor Textile Mills Limited in which a law suit may be compromised and
DIRECTOR / appropriateness of financial accounting and
Maple Leaf Capital Limited a claim or right in favour of a company may be
CHIEF FINANCIAL OFFICER reporting and the transparency of disclosures.
Maple Leaf Power Limited released, extinguished or relinquished; and
Maple Leaf Industries Limited • Other matters of strategic nature e.g., taking over Evaluation Criteria of Board Performance
a company or acquiring a controlling or substantial
Following is the main criteria:
stake in another company;
Mr. Mohsin Naqvi is Fellow Member of the Institute of Chartered Accountants of Pakistan with more than three 1. Financial policies reviewed and updated;
decades of Financial Management experience. His areas of expertise include: financial projections, forecasting- Matters Delegated to the Management
short term and long-term cash flows, business strategy development, acquisitions and evaluations of business 2. Capital and operating budgets approved annually;
Management of the Company is entrusted with the
units, establishing company’s reporting structure, implementing budgetary control procedures, implementing responsibility to conduct operations of the Company
financial software, organizing finance and treasury functions of the Company. 3. Board receives regular financial reports;
adhering to corporate strategy approved by Board
He is currently Board member of Maple Leaf Cement Factory Limited, Kohinoor Textile Mills Limited, Maple of Directors. Tactical and operational matters are 4. Procedure for annual audit;
Leaf Capital Limited, Maple Leaf Power Limited and Maple Leaf Industries Limited and certified Director from delegated to the Management of the Company which
Pakistan Institute of Corporate Governance. mainly include: 5. Board approves annual business plan;
He is former Board member of Kohinoor Mills Limited and many other foreign reputable companies. He has • Cash flow Management; 6. Board focuses on goals and results;
experience of working in several countries which include Saudi Arabia, Kuwait, Philippines, Morocco, Jordan
• Selling and Marketing; 7. Availability of Board’s guideline to management;
and Pakistan.
• Compliance with legal requirements; 8. Regular follow up to measure the impact of
• Production Management; Board’s decisions;
DIVERSITY IN THE BOARD
• Procurement Management and 9. Assessment to ensure compliance with code of
The members of Board of Directors of the Company have diversified experience, skills and knowledge in the ethics and corporate governance.
• Other support functions like Human Resource
field of finance, operations, banking and corporate sectors.
Management.
96 97
During the year under review, the performance Further, the Directors have also provided declarations IMPLEMENTATION OF GOVERNANCE
review of Board was not carried out by any external that they are aware of their duties, powers and PRACTICES EXCEEDING LEGAL REQUIREMENT The Board ensures application of diversity policy
consultant. responsibilities under the Companies Act, 2017 and through Human Resource department by ensuring
The management of Maple Leaf Cement Factory that all talent hunting seminars, job fairs and
the Listing Regulations of Pakistan Stock Exchange.
Limited believes to follow best governance practices advertisements specifically mention that we are
PERFORMANCE REVIEW OF BOARD that can be implemented in the Company’s
CREDIBILITY OF INTERNAL CONTROLS AND an equal opportunity employer in all areas and we
COMMITTEES environment. To implement these practices, the
SYSTEMS nourish an organizational culture where individual
minimum benchmark is to comply with all the legal differences are appreciated rather than criticized for
Performance of Board Committees is regularly
The ultimate responsibility for effective internal requirements. However, the management goes ahead novel ideas and improvements. Furthermore, Internal
evaluated by the Board of Directors based on the
control systems rests with the Audit Committee (the to implement best governance rules and practices Audit department ensures and reports compliance of
terms of reference as defined and approved by the
Committee). At MLCF, the Internal Audit function that are followed globally and are in favour of the diversity policy on periodic basis.
Board.
is tasked by the Committee to report on matters Company’s shareholders, employees, environment
related to risk assessment, SOP compliance and and community. Disclosure of interest in significant contracts and
UNRESERVED COMPLIANCE OF
INTERNATIONAL FINANCIAL REPORTING smooth running of Quality Management Systems. Following additional governance practices arrangement by directors
STANDARDS (IFRS) The Internal Audit team consists of professional and implemented by the management include: None of the Directors have any interest in significant
competent personnel, having knowledge of the audit
The management of the Company strongly believes • Disbursement of additional corporate and financial contracts and arrangements the Company has
and accounts., The Internal Audit Department has
in adherence to unreserved compliance with all the information to shareholders and legal authorities, entered into. However, the Board has also a policy that
experience and expertise to independently judge and
applicable International Accounting Standards (IAS)/ although not required by any law, to make the all the directors who have any such interest will need
provide independent evaluations of internal controls
IFRS issued by International Accounting Standards Company’s affairs more transparent and to give to disclose it beforehand.
and risks to the Committee. The Committee lays
Board (IASB) vital to true and fair preparation and better insight of the Company’s affairs, policies
down the groundwork strategy that defines which COMPENSATION POLICY OF EXECUTIVE
presentation of financial information. Compliance to and strategies.
processes, departments and functions are required DIRECTORS WHO ALSO SERVE OTHER
IFRS encourages sufficient disclosures of the financial
to be audited. The Internal Audit function executes • Implementation of 5S policy to create a healthy COMPANIES BOARD OF DIRECTORS
statements that are beneficial for informed decisions
of stakeholders. the strategy by identifying, assessing and measuring and work friendly environment together with
Executive directors of the company shall be
the likelihood and magnitude of various risks. Based efficiency and effectiveness.
appropriately compensated for their service in the
Financial statements for the year have been prepared on assessment of risks, an audit plan is drafted in
• Implementation of Health, Safety and Environment Company and for representation on the Company’s
in accordance with the accounting and reporting collaboration with concerned Head of Departments
Policy for better and safe work place environment Board. This compensation shall take into consideration
standards issued by IASB as are applicable in and then sent for approval to the Committee. The
for employees, workers and surrounding the amount of time required to be devoted to Board
Pakistan. IFRS adoption status is in detail is explained audit is conducted as per the plan and control activities, the fiduciary responsibility of such positions
community.
in note 3 of annexed standalone financial statements. weaknesses (if any) are highlighted and an action plan and the competitiveness of the compensation levels.
is agreed upon. Regular follows ups are then carried The Company understands and fulfils its corporate Compensation is subject to change at the discretion
CEO PERFORMANCE REVIEW out to ensure the implementation and achievement of social responsibility and has implemented various of the Board. Board may approve revision in Directors’
agreed action plans. social projects for welfare of the community. Compensation Policy from time to time.
The performance of the CEO is regularly evaluated by
the Board of Directors and this evaluation is based The Company obtains external assurance from: POLICY ON DIVERSITY
on the criteria defined by the Board of Directors No fee is paid to executive directors of the company
which includes various financial and non-financial key • Statutory Audit of Financial Accounts from Audit At Maple Leaf Cement Factory Limited, we aim to be by way of their appointment in other associated
performance indicators (KPIs). At the start of the year, firm A. F. Ferguson. an inclusive organisation, where diversity is valued, companies in the capacity of non-executive director.
CEO presents his KPI for the upcoming year to the respected and built upon. We recruit and retain a
• (QMS) Audit to ensure compliance with ISO 9001 Moreover, none of our executive director is working
Board of Directors. The Board periodically evaluates diverse workforce irrespective of religious and political
by SGS. as non-executive director in companies which are not
the actual performance against those KPIs during beliefs, gender, race, ethnicity, disability, education,
• Environment Monitoring Report to ensure colour, language, age, socioeconomic background, associated companies.
the year and discusses the future course of action
compliance with ISO 14001 by ECO GREEN and geographic location and region. The culture of
to attain the Company’s stated goals. The CEO also FOREIGN DIRECTOR
(PVT) Limited. the Company values differences and recognises
appraises to the Board regarding an assessment of
that stakeholders from different backgrounds and No foreign director was on Board of Directors of the
senior management and their potential to achieve the The Board has developed a set mechanism to experiences can bring valuable insights to enable a Company during the year.
objectives of the Company. assess the risk being faced and the internal controls collaborative work environment by introduction of
FORMAL ORIENTATION TRAINING PROGRAM implemented to mitigate them. The internal audit varied ideas and perspectives within the Company. HUMAN RESOURCE MANAGEMENT
FOR DIRECTORS department is also responsible to identify and evaluate
the risk being faced by the Company and controls in We aim to pro-actively tackle discrimination and to The Company is committed to build a strong
All the Directors are suitably qualified and experienced place, also test them if they are operating properly. ensure that no individual or group is directly or indirectly organizational culture that is shaped by empowered
while three Directors have obtained certificate for discriminated against for any reason regarding employees who demonstrate a deep belief in
The Board also gets external assurance on the
Directors’ Training Program and five Directors are employment and the Company bears no tolerance for Company’s vision and values. Therefore, Human
effectiveness of the internal controls and also seeks
exempt from this due to 14 years of education and 15 harassment/bullying and persecution. The company Resource Management (HRM) is an integral part of our
suggestion for the unattended areas.
years of experience on the Boards of listed companies. has a whistle blowing policy in place, and employees business strategy. The Company fosters leadership,
are encouraged to report all such matters and related individual accountability and teamwork. The main
grievances to the Human Resources department. components of the Company’s HRM policy are:
98 99
• Selecting the right person, with the right INTERACTION WITH STAKEHOLDERS
experience, at the right time, offering the right
•
compensation.
Developing management philosophies and
The interactive sessions include the annual general
meeting, extra ordinary general meetings, corporate
briefings/road shows, responding to investor queries
STRONG TOGETHER
practices to promote and encourage motivation either raised on email, website or on telephone.
and retention of the best employees.
• Recognizing and rewarding employees’ During the year, following major international and local
contribution to the business. road shows/corporate briefings sessions were held
• Fostering the concept of team work and synergetic with investors:
efforts.
• Corporate Briefing Session (23rd November 2022)
• Encouraging and supporting team concepts and
team building techniques. The Company has a set mechanism to ensure that
• Nurturing a climate of open communications all the shareholders are served with notice of annual
between management and employees. general meeting within stipulated time as per corporate
requirements. To ensure these notices are dispatched
• Making all reasonable efforts to achieve a high to members, also made available to stock exchange.
quality of work-life balance. On the day of annual general meeting, sufficient
arrangements are made to facilitate members by
Succession Planning encouraging their participation and responding to their
The Company believes in proactive approach towards queries positively.
succession planning. We recruit employees, develop
their knowledge, skills, abilities, and prepare them for INVESTORS’ GRIEVANCES POLICY
advancement or promotion into ever more challenging
roles. Rigorous succession planning is also in place The Company believes that Investor services is a vital
throughout the organization. Succession planning element for sustained business growth and we want
ensures that employees are constantly developed to to ensure that our Investors receive exemplary service
fill each needed role. We look for people who exemplify across different touch points of the Company. Prompt
continuous improvement when we are spotting future and efficient service is essential to retain existing
successors. relationships and therefore, Investor satisfaction
100 101
becomes critical to the Company. Investor queries 6. If initial enquiry establishes that further suppliers’ correspondence, production data, trading and employees in making the right decisions when
and complaints constitute an important voice of investigation is necessary, the Ombudsman will activities, project management, system backups and confronted with potential conflict of interest issues.
Investor, and this policy details grievance handling ensure that an investigation is carried out in a help desk operations.
through a structured grievance framework. neutral and fair manner without presumption Management of Conflict of Interest:
of guilt. A written request of the finding will be The primary activities of the Board for the execution of
Grievance policy is supported by a review mechanism, prepared. the plan include: The primary goal of MLCFL policy is to manage
to minimize the recurrence of similar issues in future. conflicts of interest to ensure that decisions are made
1) To develop and maintain a formal plan that is and are seen to be made on proper grounds, for
Investors have the facility to call toll free call centre 7. Further investigation shall only be carried out responsive to the Company’s current business
24/7 to register their grievances. The Company’s if the Ombudsman feels that the complaint is legitimate reasons and without bias. To do this MLCFL
needs and operating environment. has set the following procedures to manage and
Grievance policy follows the following principles: factual, fair and not speculative. It should contain
as much factual information to necessitate a monitor the conflict of Interest:
2) To ensure that a Business Continuity Recovery
• Investors are treated fairly at all times. preliminary investigation. Team includes representatives from all business 1. Identify areas of risk.
• Complaints raised by Investors are dealt with units. 2. Develop strategies and responses for risky areas.
In MLCFL, no whistle blowing incidence was
courtesy and in a timely manner. 3. Educate all employees about the conflict-of-
highlighted and reported under the above said 3) To provide ongoing business continuity training to
• Investors are informed of avenues to raise their procedures during the year. interest policy.
all employees, including executive management 4. Communicate with stakeholders to provide the
queries and complaints within the organization and the Board.
and their rights if they are not satisfied with the SAFETY OF RECORD platform for proper disclosure.
resolution of their complaints. 5. Enforce the policy.
MLCFL is effectively implementing the policy to
• Queries and complaints are treated efficiently and ensure the safety of the records. All records must be 4) Ensure that thorough current business impact Furthermore, the directors are annually reminded of
fairly. retained for as long as they are required to meet legal, analysis and risk assessments are maintained. the insider trading circular issued by the Securities and
• The Company’s employees work in good faith administrative, operational and other requirements of Exchange Commission of Pakistan to avoid dealing
the Company. The main purposes of the Company 5) Ensure a centralized executive view of the in shares while they are in possession of the insider
and without prejudice, towards the interests of business continuity plan and programs.
the Investors. Policy are: information. Every director is required to provide to
the Board complete details regarding any material
• To ensure that the Company’s records are QUALIFICATION OF CFO AND HEAD OF transaction which may bring conflict of interest with
WHISTLE BLOWING POLICY created, managed, retained, and disposed of in INTERNAL AUDIT the Company for prior approval of the Board. The
an effective and efficient manner; interested directors do not participate in the discussion
In accordance with the Company’s continued The Chief Financial Officer and the Head of Internal
commitment to ‘Good Governance’ a ‘Whistle neither they vote on such matters. The transactions
• To facilitate the efficient management of the Audit possess the requisite qualifications and
Blowing’ policy has been adopted. The policy ensures with all the related parties are made on arms-length
Company’s records through the development of experience as prescribed in Listed Companies (Code
that the ‘Whistle Blower’ will be fully protected and basis and complete details are provided to the Board
a coordinated Records Management Program; of Corporate Governance) Regulations, 2019.
the said non-conformance, will be investigated in a for their approval. Further all the transactions with
fair, transparent, reliable and principled manner. • To ensure preservation of the Company’s records the related parties are fully disclosed in the financial
CONFLICT OF INTEREST MANAGEMENT statements of the Company.
of permanent value to support both protection
POLICY
Highlights of the policy are as follows: of privacy and freedom of information services
throughout the Company to promote collegiality The Board has established conflict resolution teams
Policy Statement with aim to timely take up such conflicts and resolve
1. All Protected Disclosures should be addressed to and knowledge sharing;
the nominated Ombudsman of the Company. them in the best possible way with no delays. Teams
• Information will be held only as long as required The company has the policy for actual and perceived address to all such issues by paying attention to
and disposed of in accordance with the record conflicts of interest and measures are adopted to the complaints or observing them through the ways
2. The Protected Disclosures should be reported
retention policy and retention schedules; and avoid any conflict of interest, identify the existence of they have implemented for this. They pay attention
in writing clearly stating the issue that is being
any conflict of interest, and to disclose the existence to all the facts and come up with the resolution that
raised. It should be preferably typed but legible • Records and information are owned by the of conflict of Interest. The Company annually circulates becomes the standard for all similar events occurring
handwritten versions in English or Urdu are also Company, not by the individual or team. and obtains a signed copy of Code of Conduct after that. Board has the policy to review and discuss
acceptable.
applicable to all its employees and directors, which the performance of resolution teams periodically.
BUSINESS CONTINUITY AND DISASTER also relates to matters relating to conflict of interest.
3. The Protected Disclosures should be forwarded RECOVERY PLAN Further, it seeks to set out the process, procedures Approved Training Organization – ICAP & ICAEW
with a covering letter bearing the identity of the
and internal controls to facilitate compliance with the
whistle blower. The Board of Directors periodically review the
Policy as well as to highlight the consequences of On 31st August 2016, MLCFL was granted the status
Company’s Business Continuity & Disaster Recovery
non-compliance with the Policy by all its employees of Training Organization outside Practice (TOoP) by
4. Anonymous disclosures will not be entertained. (BC/DR) plan to ensure that critical business functions
and directors. The Company Policy provides a guide Institute of Chartered Accountants of Pakistan to impart
will be available to customers, suppliers, regulators,
as to what constitutes a conflict of interest, the practical industry exposure to CA trainee students.
5. If in an initial enquiry by the Ombudsman, it is and other entities that have access to those functions
processes and procedures that are in place in order to The Company is also an Approved Training Employer
felt that the complaint is not substantial, it can be even under extraordinary circumstances. BC/ DR
facilitate compliance and, the consequences of non- recognized by Institute of Chartered Accountants in
dismissed. plan mainly includes daily tasks such as customers/
compliance. The Policy is intended to assist directors England & Wales (ICAEW). This demonstrates the
102 103
level of confidence of these renowned institutes continuous improvement in environmental and according to the norms of the relevant market. Meeting for obtaining shareholders’ approval for
in company’s pool of qualified professionals and sustainability through recycling, conservation Further, the company has a policy to perform vendor the same. Details of party-wise disclosure of such
at the same time, raises the opportunity for trainee of resources, prevention of pollution, product evaluation before entering into any transaction. The transactions is also given in the statement u/s 134
students to be trained in one of the best organizations development and promotion of environmental company performs various kind of analysis and annexed with the Notice of AGM.
in Pakistan. During the year 2017-18, the Company benchmarking to evaluate its procurement on periodic
responsibility amongst our employees.
inducted first batch of CA trainee students under basis. TRANSACTION / TRADE OF COMPANY’S
ICAP TOoP scheme. • Responsibly managing the use of hazardous
SHARES
materials in our operations, products and services At Maple Leaf, waste and emissions are utilized to
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY produce electricity from waste heat recovery plant
and promote recycling or reuse of our products. The Board has reviewed the threshold for disclosure
POLICY (WHRP). After utilization of the waste and emissions,
• Inform suppliers, including contractors, of our of interest by executives holding of Company’s
there is very less quantum of emissions left in the
The Company’s Social and Environmental shares which includes Chief Executive Officer,
environmental expectations and require them air after going through state-of-the-art filtration
Responsibility Policy reflects the Company’s Chief Financial Officer, Executive Director (Finance),
to adopt environmental management practices equipment’s to ensure that it is no hazardous for the
recognition that there is a strong, positive correlation General Manager (Finance), Head of Internal Audit
aligned with these expectations. environment. As a result, practically, there is negligible
between financial performance and corporate, social and Company Secretary. None of the Directors,
or no waste in the cement manufacturing process at
and environmental responsibility. The Company our plants. CEO, CFO, General Manager (Finance), Head of
Policy on Corporate Social Responsibility
believes that the observance of sound environmental Internal Audit and Company Secretary (including their
and social strategies is essential for building strong spouses and minor children) traded in the shares of
The company has formulated an efficient policy for RELATED PARTY TRANSACTIONS
brand and safeguarding reputation, which in turn is the Company other than Executive Director (Finance)
sustainability and corporate social responsibilities in
vital for long term success. who purchased 60,000 shares from Stock Market.
accordance with the SECP’s CSR guidelines 2013 The Company has made detailed disclosures about
Social Responsibility Policy:
and the Companies’ Act 2017. The Board has put related party transactions in its financial statements
in place a CSR committee which is formed for better ROLE OF CHAIRMAN AND THE CEO
annexed with this annual report. Such disclosure is
• Implementation of Employee Code of Conduct monitoring and execution of all CSR related tasks in line with the requirements of the 4th Schedule to
that fits with local customs and regulations. including the Al-Aleem Medical College, in Ghulab The Company’s Chairman reports to the Board and
the Companies Act, 2017 and applicable International
Devi Chest Hospital. The Company has contributed the CEO reports to the Chairman (acting on behalf of
• Culture of ethics and behaviour which improve Financial Reporting Standards. the Board) and to the Board directly. Their respective
in medical social sciences project and in this regard,
values like integrity and transparency. roles are being described here under: -
the Company’s Board of Directors and the Board Moreover, the Company has also decided to place its
• Focusing on social involvement by developing of the Holding Company jointly donated towards related party transactions before the Annual General
multicultural teams with different competencies. construction of Admin Block at Al-Aleem Medical
College in Gulab Devi Chest Hospital (GDCH), Lahore.
• Promoting the culture of work facilitation and The project achieved completion during the year. This Role of the Chairman Role of the CEO
knowledge transfer. committee supervises all CSR activities and ensures
the progress of all CSR related goals, objectives and Principal responsibility is the effective running of the Principal responsibility is running the Company’s
• Carrying out corporate philanthropy actions that targets. The committee plans and determines the Board. business.
focus in particular on preserving life and the priority areas wherein the CSR projects are currently
environment. being managed (ongoing projects) and are planned Responsible for ensuring that the Board as a whole Responsible for proposing and developing the
to be initiated in the future. The Company has been plays a full and constructive part in the development Company’s strategy and overall commercial objectives,
• Maintaining collaborative relations with the recognized by the Pakistan Centre for Philanthropy and determination of the Company’s strategy and which he does in close consultation with the Chairman
society through a good harmony and effective as a leader in social and charitable contributions overall commercial objectives. and the Board.
communication. and strives to be a constructive member of the
communities in which it has a presence. The Company
Environmental Responsibility Policy has received the “Corporate Social Responsibility Guardian of the Board’s decision-making process. Responsible with the executive team for implementing
Award 2022” demonstrating management’s firm the decisions of the Board and its Committees.
• Ensure our products, operations and services philanthropist attitude towards social welfare of the
comply with relevant environmental legislation society at large through charitable contributions and Responsible for promoting the highest standards of Responsible for promoting, and conducting the affairs
and regulations. compliance with CSR objectives. integrity, probity and corporate governance through- of the Company with the highest standards of integrity,
out the Company and particularly at Board level. probity and corporate governance.
Company’s approach to managing and reporting
• Maintain and continually improve our environmental polices like procurement, waste, and emissions.
management systems to conform to the ISO
Standards or more stringent requirements as Our approach is to procure from the vendors who
dictated by specific markets or local regulations. are registered with tax authorities and work in
professional and ethical ways. The company ensure
• Operate in a manner that is committed to that all transactions would be at fair market value
104 105
TERMS OF REFERENCE OF
BOARD COMMITTEES
AUDIT COMMITTEE
(xi) Instituting special projects, value for money
The Main Terms of Reference of the Audit
studies or other investigations on any matter
Committee are as under: -
specified by the Board of Directors, in
consultation with the Chief Executive Officer
(i) Determination of appropriate measures to
and to consider remittance of any matter to the
safeguard the Company’s assets;
external auditors or to any other external body;
(ii) Review of annual and interim financial statements
(xii) Determination of compliance with relevant
of the Company, prior to their approval by the
statutory requirements;
Board of Directors, focusing on:
(xiii) Monitoring compliance with these regulations
(a) major judgmental areas;
and identification of significant violations thereof;
(b) significant adjustments resulting from the
audit;
(xiv) Review of arrangement for staff and management
(c) going concern assumption;
to report to Audit Committee in confidence,
(d) any changes in accounting policies and
concerns, if any, about actual or potential
practices;
improprieties in financial and other matters and
(e) compliance with applicable accounting
recommend instituting remedial and mitigating
standards;
measures;
(f) compliance with these regulations and other
statutory and regulatory requirements; and
(xv) Recommend to the Board of Directors
(g) all related party transactions.
the appointment of external auditors, their
removal, audit fees, the provision of any service
(iii) Review of preliminary announcements of results
permissible to be rendered to the Company by
prior to external communication and publication;
the external auditors in addition to audit of its
financial statements, measures for redressal
(iv) Facilitating the external audit and discussion
and rectification of non-compliances with the
with external auditors of major observations
Regulations. The Board of Directors shall give
arising from interim and final audits and any
due consideration to the recommendations of
matter that the auditors may wish to highlight (in
the Audit Committee and where it acts otherwise
the absence of management, where necessary);
it shall record the reasons thereof.
(v) Review of management letter issued by external
(xvi) Consideration of any other issue or matter as
auditors and management’s response thereto;
may be assigned by the Board of Directors.
(vi) Ensuring coordination between the internal and
HUMAN RESOURCE & REMUNERATION
external auditors of the Company;
COMMITTEE (THE ‘HR & R COMMITTEE’)
(vii) Review of the scope and extent of internal audit, The Main Terms of Reference of the HR&R Committee
audit plan, reporting framework and procedures are as under: -
and ensuring that the internal audit function has
i. Recommending human resource management
adequate resources and is appropriately placed
policies to the Board;
within the Company;
ii. Recommending to the Board the selection,
(viii) Consideration of major findings of internal evaluation, development, compensation
investigations of activities characterized by (including retirement benefits) of Chief Operating
fraud, corruption and abuse of power and Officer, Chief Financial Officer, Company
management’s response thereto; Secretary and Head of Internal Audit;
(ix) Ascertaining that the internal control systems iii. Consideration and approval on
including financial and operational controls, recommendations of Chief Executive Officer
accounting systems for timely and appropriate on such matters for key management positions
recording of purchases and sales, receipts and who report directly to Chief Executive Officer or
payments, assets and liabilities and the reporting Chief Operating Officer; and
structure are adequate and effective; iv. Where human resource and remuneration
consultants are appointed, their credentials shall
(x) Review of the Company’s statement on internal be known by the committee and a statement
control systems prior to endorsement by the shall be made by them as to whether they have
Board of Directors and internal audit reports; any other connection with the Company.
106 107
CROSS-FUNCTIONAL
TEAMS
Team Energy
Higher management of the company has formulated a team of pioneer executives with diversified skills to
cope up 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 efficient energy
solutions. The team has been working 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. SAYEED TARIQ SAIGOL MR. MUHAMMAD BASHARAT

MR. ABDUL HANAN MR. NASIR IQBAL
MR. AMER BILAL MR. SOHAIL SADIQ
MR. ARIF IJAZ MR. TARIQ MIR
MR. ZEESHAN AHMED MR. ZEESHAN MALIK BHUTTA
Number of Meetings Held – 52
Team Improvement
A team of proficient personnel has been formulated to encourage the concept of sustainable development
through Quality Management System (QMS) 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 MEMBERS:
product are subjected to rigorous quality testing to ensure that each bag of cement is of the best quality.
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD BASHARAT
MEMBERS: MR. ABDUL HANAN MR. NASIR IQBAL
MR. AMER BILAL MR. SOHAIL SADIQ
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD BABAR SARFRAZ MR. ARIF IJAZ MR. TARIQ MIR
MR. ABDUL HANAN MR. NASIR IQBAL MR. ZEESHAN AHMED MR. ZEESHAN MALIK BHUTTA
MR. AMER BILAL MR. NAUMAN AHMED
MR. ARIF IJAZ MR. SOHAIL SADIQ Number of Meetings Held – 52
MR. ZEESHAN AHMED MR. TARIQ MIR
MR. MUHAMMAD BASHARAT MR. YAHYA HAMID Team Culture Development
MR. ZEESHAN MALIK BHUTTA
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
Number of Meetings Held –52
to ensure wellbeing 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
Team Reliability Centered Maintenance
the employees and where all people are treated equally.
Reliability Centered Maintenance (RCM) team has been established to evaluate the equipment’s condition and
MEMBERS:
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
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD BABAR SARFRAZ
proactive maintenance to keep in pace all the machinery and equipment for their adequate functionality and
MR. ABDUL HANAN MR. SOHAIL SADIQ
to increase cost effectiveness, machine uptime, and a greater understanding of the level of risk that the
organization is presently managing. MR. ARIF IJAZ MR. YAHYA HAMID
MR. ZEESHAN MALIK BHUTTA
Number of Meetings Held -12
108 109
REPORT OF THE
AUDIT COMMITTEE
by a Chartered Accountant with a team of 16. Present Auditors, M/s. A. F. Ferguson & Co.,
professionals who are suitably qualified and Chartered Accountants, were appointed as
experienced and well aware of the Company’s on October 27, 2022. They are professional
policies and procedures. services company and one of the big four
auditors. They carry out objective examination
9. Internal audit function operates under the and evaluation of the financial statements to
charter approved by the Audit Committee and make sure that the records are fair and accurate
head of the internal audit function has direct representation of the transactions. M/s. A. F.
access to the Audit Committee. Ferguson confirms every year that the firm and
all Partners in the firm are compliant with the
10. Company’s internal audit function prepares IFAC guidelines on Code of Ethics as adopted
annual plan for the financial year and a strategic by the Institute of Chartered Accountants of
audit plan for following two years during which Pakistan.
all major systems and areas of activity will be
audited. Annual and strategic audit plan is 17. The external auditors, M/s. A. F. Ferguson & Co.,
approved by the Audit Committee. Chartered Accountants, were allowed direct
access to the Audit Committee and necessary
11. Internal audit reports include findings, coordination with internal auditors was also
conclusions, recommendations and action ensured. Major findings arising from audits and
plans agreed with management. These are any matters that the external auditors wished
reported promptly to the appropriate level of to highlight were freely discussed with them.
management. Follow up in implementation is
ensured. 18. The Audit Committee reviewed the
Management Letter issued by the external
12. The Audit Committee, on the basis of the auditors and the management response
internal audit reports, reviewed the adequacy thereto. Observations were discussed with
The Audit Committee comprises of two Independent accounting records have been maintained by the of controls and compliance shortcomings in the auditors and required actions recorded.
Directors and two Non-Executive Directors. The Chief Company in accordance with the Companies Act, areas audited and discussed corrective actions
Financial Officer, the Chief Internal Auditor and the 2017, and the external reporting is consistent in the light of management’s responses. 19. Appointment of external auditors and fixing
external auditors attend the Audit Committee meetings with management processes and adequate for This has ensured the continual evaluation of of their audit fee was reviewed and the Audit
as provided in Listed Companies (Code of Corporate shareholder needs. controls and improved compliance. Committee following this review recommended
Governance) Regulations, 2019. Four meetings of the to the Board of Directors re-appointment
Audit Committee were held during the year 2022-2023. 4. The Audit Committee reviewed and approved all 13. The Audit Committee has reviewed the of M/s. A. F. Ferguson & Co., Chartered
Based on reviews and discussions in these meetings, related party transactions. Annual Report for the last financial year and Accountants, as external auditors for the year
the Audit Committee reports that: found it fair, balance and understandable to 2023-2024.
5. No cases of material complaints regarding users of financial statements. Annual Report
1. The Audit Committee reviewed and approved accounting, internal accounting controls or audit provides the necessary information to all the
the quarterly, half yearly and annual financial matters, or Whistle Blowing were received by the stakeholders about the Company’s financial
statements of the Company including consolidated Committee. performance, financial position and future
financial statements and recommended them for prospects. On behalf of the Audit Committee
approval of the Board of Directors. 6. The Company’s system of internal control is
sound in design and is continually evaluated for 14. Performance of the Audit Committee is annually
2. Appropriate accounting policies have been effectiveness and adequacy. reviewed by the Board of Directors. However,
consistently applied. All core and other applicable the committee is devising the checklist for self- (Shafiq Ahmed Khan)
International Accounting Standards were followed 7. The Board has established internal audit function evaluation of its performance. Chairman, Audit Committee
in preparation of financial statements of the being an independent appraisal function for the September 06, 2023
Company and consolidated financial statements review of the internal control system in all areas of 15. The Audit Committee ensured that statutory
on a going concern basis, which present fairly the the business activity and provides management and regulatory obligations and requirements of
state of affairs, results of operations, cash flows with objective evaluations, appraisals and best practices of governance have been met.
and changes in equity of the Company. recommendations on the adequacy, effectiveness
and compliance with each system reviewed.
3. Accounting estimates are based on reasonable
and prudent judgment. Proper and adequate 8. Company’s internal audit function is headed
110 111
BOARD’S DISCLOSURE ON COMPANY’S
USE OF ENTERPRISE RESOURCE
PLANNING (ERP) SOFTWARE
ERP Structure and Integration Processes in a of key risk areas and controls to mitigate these risks.
Single System: The Company uses Oracle R12 The Company used following tools and techniques
e-Business Suite (ERP system) that contains Oracle to address and manage risk factors on ERP Projects:
Financials, Inventory, Supply Chain, Procurement,
Landed Cost Management, Human Resource and • effective strategic thinking and planning
Order Management. All These modules are integrated • project team skills
with each other that provides automation, efficiency • adequate BPR (Business Process Re-
and productivity in day-to-day business operations. engineering)
• adequate change management
Management Support in implementation and
continuous updating: The Company’s management Systems Security, Access to sensitive data and
is keen to modernize business equipment to maintain segregation of duties: The Company monitors
efficiencies as well as organizational growth. In system security and access to sensitive database.
this view the company upgraded ERP from Oracle The Company uses different operating units for
e-Business Suite R12.1.3. to Oracle e-Business head office and plant staff to restrict users’ as per
Suite R12.2.9. This new upgradation offers significant security matrix, which is being reviewed periodically
enhancements across security, performance stability by head of departments. This security matrix
and new features. The company has recently review help manage effective security measures
acquired Oracle Fusion Cloud ERP (Financial, Supply including revoking and restricting the access rights.
Chain and Maintenance system), which has been Furthermore, security matrix is designed on basis of
implemented in 1st July 2023. Oracle Fusion Cloud International Governance, Risk and controls (GRC)
ERP is next generation ERP system, which has best practices.
enhanced security, mobility, state-of-art analytics
and dashboards separately for each layer of users, CHAIRMAN’S SIGNIFICANT COMMITMENTS
Manager and C-Level executives, all these analytics
and dashboards has single source of facts. List of Companies in which the Chairman holds
directorship has been separately disclosed in the
User Trainings: Employees training and development Directors Profile section of the Annual Report.
is mandatory to maintain efficiency & productivity in
smooth business operations. The Company believes No external search consultancy has been used in
in investment on human resources to improve skills the appointment of the Chairman or non-executive
and knowledge of employees and in this regard director.
training programs are executed when necessary.
Management of Risk Factors on ERP projects:

There is no such thing as a risk-free project. A project
exists to bring about change, and with change
comes uncertainty, and that means that risks have
to be taken. The Company focuses on management
of risk by proper planning, executing and monitoring
112 113
CORPORATE
SUSTAINABILITY
We at Maple Leaf believe in creating value for all our stakeholders while keeping
our commitment to a safe clean environment intact. While the Top Management is
responsible for laying out and supervising the plan for a strategy towards a sustainable
approach, the functional teams work on its implementation. Keeping in mind that
in today’s world, a business’s success does not solely rely on its profitability, MLCF
endorses the ‘Triple Bottom Line’ framework for achieving a sustainable business.
The triple bottom line helps the business to have a broader perspective of their
business activities and work out ways to achieve business prosperity on metrics that
include environmental health, social influence and contributions to the economy. All
the three bottom lines; Economic, Social and Environmental, are of equal importance
for the Company and therefore hold equal weightage in its decision making.
Following the triple bottom line theory, the Company succeeds in achieving its goal
of sustainability as well as other business advantages. Waste heat management
resulted in reduction in operational costs and improved asset utilization. Along with
the financial advantages the company is also able to create a strong image through
frequent engagements with the local communities and stakeholders to provide a better
life for all.
To make sure that the company is moving in the right direction with respect to the
sustainable strategy, steering committees are formed by the company to ensure the
implementation of policies. These teams include Team Culture Development, Team
Energy, and Team HSE, who are responsible for the execution and control of the plan
in accordance with their team’s scope. Furthermore, cross functionality being one of
our core values, helps in achieving the set goals by the teams. The teams meet on
predefined periodic basis to discuss their progress and provide guidance through
synergy with one another. The efforts made by these teams are reviewed on a regular
basis so that there’s no delay in decision making whenever needed.
Board’s statement of Adoption of best CSR practices
“Our primary goal is to work towards a better future that can positively impact every
person in our society. Our Corporate Social Responsibility (CSR) policy is designed
to help us achieve this mission. We consider important areas like education, training,
and ensuring health and safety at work as crucial parts of our social responsibilities
as a business. Our social responsibility plan covers both our employees and the
communities we operate in.”
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cost and improve the efficiency by reducing the cost we have been producing quality products for our
Board’s statement about company’s strategic and ethical behavior at all levels of corporate of production. customers while undertaking measures to eliminate
objectives on ESG /sustainability reporting governance. Water Conservation: Maple Leaf Cement use water the negative impact of our business activity on the
through efficient processes which reduces the overall environment. In congruence with the company’s
At Maple Leaf, we are committed to positive change Chairman’s overview on the company’s use of water. This helps in saving the input cost and dedication to provide returns not only to our
and long-term sustainability for our business and sustainable practices and their effect on the increases financial performance of the Company. shareholders but also to our people and community,
stakeholders. Our Strategic objectives on ESG are as financial performance. the business integrates the ‘Sustainable Development
following: Tree Plantation: Maple Leaf believe in Go Green. Goals’ (SDGs) within the business processes. These
Maple Leaf believes in sustainable business model We have planted 162,700 trees in last 6 years. This goals were first introduced in 2015 by the United
• Environmental Safety: and best sustainable practices regarding ESG helps in improving the health of human capital. This Nations in wake of the growing global challenges:
(Economic, Social, Governance) and sustainability. improvement in health saves the medical costs on poverty, hunger, increasing inequality, change in
We are focused on reducing our environmental So, we have implemented many sustainable practices employees which is incurred by the Company. climate, peace and justice, etc. SDGs comprise of
impact by implementing sustainable practices, for the better future of society as whole. 17 goals in total with 169 targets that are directed to
reducing carbon emissions, and saving resources. Proper Covering of Fuel: Maple Leaf Cement use achieve a sustainable future for everyone around the
The following are the major sustainable practices at proper sheds for covering the fuel such as coal and globe by 2030. We at Maple Leaf envision a bright
• Social Responsibility: Maple Leaf Cements and their effect on the financial pet coke. This reduces the emission of particles in the and prosperous future not only for ourselves but for
performance of the Company. air and save coal from the moisture. So, by keeping our country as a whole. Hence, we always strive
We contribute to the well-being of our society. Our the coal dry, the company saves cost as the dry coal and make efforts to stay ahead of the curve through
commitment to Health, safety, diversity, equality, Solar and WHRP: Maple Leaf Cement has is more efficient for burning as the lesser inputs are our innovations and contributions in our industry. In
and inclusion will be reflected in our work force implemented solar energy and Waste Heat Recovery used for the same amount of energy. order to achieve this mission, we align our business
and culture. Plant (WHRP) to power up the plant. These methods processes and activities with the SDGs and contribute
of electricity have no carbon emission. In financial Maple Leaf’s alignment with Sustainable towards a sustainable future as a rightful corporate
• Governance Excellence: aspect, the solar power and waste hear recovery Development Goals citizen.
plant are the cheapest source of energy. These
We ensure the transparency, accountability energy sources reduce a heavy amount of electricity Maple Leaf as an organization has always believed
in growth through sustainable means. For years now,
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Below mentioned are Maple Leaf’s approach to alignment of the SDGs:
SDG No. What do we aim to achieve? Our contributions SDG No. What do we aim to achieve? Our contributions
1. Good Health and Well Being Ensure healthy lives and wellbeing for - Family club 7. Industry, Innovation and Infra- Build resilient infrastructure, promote in- - Cement donations for
everyone at all ages. - Medical assistance for em- structure clusive and sustainable industrialization schools, mosques, and other
ployees and families and foster innovation social projects.
- Al-Shifa- hospital for employ- - Development, renovation and
ees at site beautification of Mianwali city.
- First aid and CPR training - Tackling air emissions, energy
- Jungle mein Mangal (VPS) saving, etc.
for truck drivers, -Pandemic - Availing latest technologies at
recovery plan cement plant.
8. Reduced Inequality Reduce inequality within and among - Job opportunities for disabled
2. Quality Education Ensure inclusive and equitable quality - Sponsorship for 10 class- countries people
education and promote lifelong learning rooms for Police Public Middle - Master mistri program
opportunities for all School,
- 4 schools established in
Iskandrabad 9. Sustainable Cities and Com- Make cities and human settlements - community development
- Donation to Gulab Devi for munities inclusive, safe, resilient and sustainable plans for underprivileged com-
Aleem Medical College munities (rural development
program)
- Infrastructure enhancement-
3. Gender Equality Achieve gender equality and empower - Female representation in gov- bus stops, mosques, schools,
all women and girls ernance body etc.
- Equal opportunities for female - Donations to welfare organi-
employees zations.
- Zero tolerance towards
gender-based violence and 10. Responsible Consumption Ensure sustainable consumption and - Monitored production patterns
harassment and Production production patterns through independent sources
(Eco Green).
- Adoption of 5S methodology
4. Clean water and Sanitation Ensure availability and sustainable man- - Constructed water supply
agement of water and sanitation for all scheme to the nearby rural 11. Climate Action Take urgent action to combat climate - plantation drives,
areas for Daud Khel, Sora and change and its impacts - controlling and tackling air
Khairabad village emissions,
- Sensor taps to eliminate wast- - managing waste,
age of water - improving biodiversity
- Water filtration and treatment through quarry rehabilitation.
plant at plant site 12. Peace and Justice Strong Promote peaceful and inclusive societies - business ethics and anti-cor-
Institutions for sustainable development, provide ruption measures.
5. Affordable and Clean Energy Ensure access to affordable, reliable, - Waste Heat Recovery Plant access to justice for all and build effec- - Lawful and transparent opera-
sustainable and modern energy for all - Coal Fired Power Plant tive, accountable and inclusive institutional policies and practices.
- Wartisila and Nigata generations at all levels - Safety of employees and
tors guests through gated enclo-
- Auto-controlled energy sen- sures, validation ID cards,
sors (ACs, lights, etc) logs, security cameras and
- Dust collection electrostatic independent security force.
precipitators and bag filters for
environment protection. Maple Leaf’s Commitment towards chain, in order to control negative impacts on both
- R&D for energy alternatives Sustainability: Management mechanism, the economy as well as the environment. The
reporting and actions governance at Maple Leaf articulates a corporate
6. Decent Work and Economic Promote sustained, inclusive and - Employment opportunities for commitment towards Sustainable Development
Growth sustainable economic growth, full and youth Our commitment towards sustainability is guided along with internal alignment programs that help set
productive employment and decent - Contribution to National Ex- by our values, principles and vision. Sustainability incentives for sustainable development and strong
work for all chequer is rooted not only in our vision and principles but accountability. To achieve our goals and objectives
- Healthy work environment, also in our business model and approaches. The we implement policies (health and safety, code of
- Apprenticeship opportunities sustainability approach designed by our senior conduct, environmental, Human resource planning)
- Policies against unfair hiring management focuses on achieving efficiency in that lay foundations for our sustainability building and
and recruitment practices operations, pursuing sustainability in our supply fulfils our role of a corporate citizen. To add more
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relevance to the sustainability strategy for employees health, as a result of our procurement practices.
the management sets KPIs that are monitored Choice of vendor is not based solely on attractive
throughout the year time and again. Reviewing and lucrative quotations, but also on its standing
the performance of the steering teams helps the as a reputable corporate citizen, clear of black-
Management keep a check and balance on the market operations and criminality. This is achieved
implementation of the strategy and take action where by performing a complete customer/vendor profile
needed to achieve the set goals as it is essential for mapping and marking. Under the Green Purchasing
achieving the sustainability as a whole. strategy banner, the screening process is to be
augmented by adding requirements under the
This way not only the strategy is channelized within ‘environmentally preferable criteria’ which would
the organization but also clarifies the company’s require suppliers to be compliant with international
vision towards sustainability to all the key participants. standards and result in a multi dynamic selection
process with respect to human rights, health and
Furthermore, as our commitment towards a positive safety of workers, etc. While the company is currently
and healthy environment, we have an independent taking measures to educate suppliers and contractors
organization, Eco Green, on board with us that audits regarding the importance of environment friendly
our plants to check whether we are in compliance practices, adding more parameters to the education
with the set legal requirements for the environment by session is under consideration.
the authorities. The results are shared in a compiled major cost incurred on Human Resource Management Employee Satisfaction:
report on a monthly basis with the company. Through Green Purchasing Maple Leaf aims to cut are monitored and measured through HR Budgeting
down on waste and environmental impact along with which mainly includes the cost of recruitment, training, It is essential for a company to make sure its
Sustainability and Supply Chain: reduced costs. development and rewarding staff. employees are satisfied with their employers. Similarly,
for a company to gain competitive advantage and to
At MLCF, we believe that achieving a sustainable
business is not restricted to production practices
SOCIAL At the start of the financial year, estimated costs of benefit from its diverse workforce, it needs to cater
to employee satisfaction. To achieve employees’
only but also includes the supply chain. From PERFORMANCE hiring along with the advertisement and headhunting
expenses are calculated and added in the budget. satisfaction, the Company engages in various
our early days, we have been communicating Similarly, the training & development plans, major activities including annual gatherings, formal and
As one of the leading enterprises of Pakistan we
with our suppliers and contractors regarding our employee rewards & benefits including Staff informal meetings, surveys, HR engagement
believe and understand that measuring and achieving
environmental expectations and require them to increments, health & life insurance, leave encashment, and appraisal activates designed to bridge the
success encompasses the profitability objective
adopt environmental management practices aligned staff vehicles costs (as a part of perks) are forecasted communication gap between top management and
and its responsibility and mission to leave a positive
with these expectations. In light of this, suppliers/ and incorporated into the annual budgets. And at the employee. It also results in identification of areas that
impact on people and society through our business need improvement, recognize and reward exemplary
contractors appointed for raw material extraction end of the year, all the actual costs incurred on these
activities. We aim for a brighter tomorrow that will performance via salary raises and promotions and
(limestone, gypsum, etc) are strictly prohibited from initiatives are compared with the budgeted figures
transform the lives of every individual of our society. help employees gain a better understanding about
exploiting the mines and are required to follow the set and next year’s budgeting is further carried out on the
Our Corporate Social Responsibility (CSR) policy is their roles and responsibilities. The ultimate goal is to
provisions for mining by the authorities. The suppliers basis of comparative analysis.
designed in hopes of achieving our mission. From enhance employee’s productivity as well as impart a
are informed and educated about the importance of education to training to health and safety at work, all sense of belonging by making them feel valued and
environment protection not only to Maple Leaf but
these aspects hold importance for us as major factors acknowledged.
to their respective businesses as well. Other than of our social responsibilities as a business. Our social
encouraging environmental friendly practices, the responsibility plan covers both ‘Our People’ and ‘Our
company also scrutinizes its business partners on Communities’.
the basis of how actively they are fulfilling their legal
requirements e.g., in light of creating an accountable All the employees and workers at Maple leaf are of
and documented economy, the company motivates great value to the company. They play a vital role in our
and highlights the importance to stakeholders in success and hence are a company’s strategic asset.
the upstream and downstream supply chain to get Their wellbeing and development is the company’s
registered with the tax authorities. Furthermore, the standing priority. Every stakeholder has bearing
Company fulfils its role as a withholding agent and significance to the company and through continuous
makes timely payment of amount due to the National stakeholder engagement activities, efforts are made
exchequer. to develop a meaningful relationship which benefits
society as a whole.
To further strengthen the company’s approach
towards a sustainable supply chain, MLCF plans on HUMAN RESOURCE ACCOUNTING
enhancing its current approach by adopting ‘Green
Purchasing” strategy. By acting upon the Green Maple Leaf believes that having an eye on cost factor of
Purchasing Strategy, we aim to achieve sustainability the organization is important as it gives us a true picture
in our supply chain by reducing negative effects of of the Impact and overall success of the initiatives
procurement on the environment as well as human taken by the Company. In light of this philosophy, the
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In addition to this, all employees are offered market
At Maple Leaf employee management, labour competitive salaries along with other benefits. The
management and human rights are implemented in Company is committed to provide equal opportunity
accordance with the legal requirements. The company to all existing and prospective employees without
has no child labour or forced labour as part of the any discrimination on the basis of religion, gender,
workforce. The employees are informed beforehand race, age etc. and there has been no incident of
in case of any operational changes, however, there discrimination so far. The Company has employed
were no operational changes during the year. Integrity disabled persons in compliance with the rules set out
is a part of our core values at MLCF, we have a strict by the Government of Pakistan which is 2% quota
policy against corruption and bribery. To emphasize of the total workforce necessitated to be allocated to
its importance and to make sure the policies are disabled persons.
communicated to all employees, a code of conduct
is designed in a way that leaves no room for non- Employee Engagement, Training And Skills
compliance. Development Activities:
The Company believes that recreational and skills

enhancement activities are imperative in order to
maximize employees’ performance. For this purpose,
the Management organizes various interactive
activities. All these activities are designed to engage
employees from all levels of organization. The events
held during the year include;
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• Eid Milad un Nabi training sessions are designed with an ambition to
• Christmas Celebrations enhance the knowledge and skills of the employees so
• Annual Mega Event that they not only perform to their full potential but also
• Azadi Celebration prepare them for their future challenges. Other than
• HODs family day out physical training like on-the-job, the company also
• Maple sports week focuses on virtual training sessions and webinars in
• Mango feast order to cover a wider range of topics while facilitating
employees to learn at their own pace and place.
Nurturing the spirit of employee-centrism, the
Company has constructed a purpose-built club at Training and development at MLCF are designed to
factory site for the employees and their families. The amplify the value of the employee through a designed
club is equipped with various modern facilities of a structure of job enrichment and enlargement and
pool table, television lounge, fast food point and salon. targets both the technical and soft skills which
Foosball table, chess and carom board games are help the employees integrate decision making and
there to keep all the guests entertained. A separate professionalism into their list of capabilities. Other
class room is also part of the club to teach the children than the motive of equipping the workforce with the
music lessons. right skill set, training also plays a role in succession
planning. Succession planning is important for the
Training and educating employees are integral to company with respect to its HR policy of running the
HR management. Therefore, the company invests in business smoothly, meeting customer satisfaction and
huge amounts for the training of its employees. These delivering sustainable returns to the stakeholders. The
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management makes sure that training is effective, deprived with updated facilities and medical aid. In
goal oriented and is beneficial for both the employees such a case, prevention becomes more important
and the company, hence the performance and than cure but unfortunately due to lack of knowledge,
progress of training is regularly reviewed and areas new cases keep coming up of such serious diseases.
for improvement are highlighted.
Industrial Relations
The Company also spends a lot in terms of finances
and time for the training of its resources as is evident The Company has set procedures, rules and
from the below trainings organized by the company; regulations which regulate employment guidance. The
Company has allocated Gratuity, Provident Fund and
• Unleash your True Potential for Sales Team (2 Worker’s Profit Participation Fund for its employees.
Batches) The Company also pays bonuses to employees on
• Problem Solving & Decision Making for DGM’s the basis of Company’s profitability and also awards
• Multitasking Skills for Mechanical Staff performance bonuses to star performers. Appropriate
(Fabrication, Millwright & Rigging) opportunity is provided to employees to participate in
• Fire Fighting Training Program Collective Bargaining Agreement (CBA) activities and
• HSE Awareness Sessions to elect representatives of their choice. Company also
• Management Development Program, LUMS trains daughters/sons of workers through internship create a healthy and safe environment equipped injuries to employees and visitors. The Company
and apprenticeship program. with safety measures with an aim to eliminate and strives to provide a safe and healthy workplace for
For MLCFL, it’s not just the employees that matter but reduce accidents, health issues and injuries at its employees and to act responsibly towards the
also their families. Going beyond cross-functionality, HEALTH AND SAFETY work for employees, contractors, communities and communities and environment, in which it operates.
cultural events are planned for employees’ and their customers. Our goal in respect of safety, health and It realizes this through the commitment of its
families. Health and Safety ranks as the top most priority environment is to minimize all adverse environmental leadership, the dedication of its staff, and application
at MLCFL. The ambition of the Company is to and health impacts arising out of our operations and of the highest professional standards of work.
Rural Development Program provide safe working conditions and environment to to conserve all kinds of resources and adhere to all
employees and be amongst the safest companies legal regulations. The Company has been approved the standards of
Being setup in a rural area, The Company realizes countrywide. Health and Safety is at the center of ISO 14001 and ISO 18001 for complying with an
its responsibility to create awareness amongst the everything performed by MLCFL, from the daily The HSE team at MLCF is a fully dedicated team effective Environmental Management System (EMS)
local masses relating to dengue and other serious routines at the plants to project worksites and actions towards implementation of the action plan that and Occupational Health and Safety Assessment
diseases through awareness campaigns and various in neighbouring communities. The aspiration is to help achieve compliance with health, safety and Series (OHSAS) requirements.
other techniques. The area of the plant site is an area conduct business with zero harm to people and to environment matters. Through continuous coaching
and training, our workforce is frequently updated Management takes all possible measures to prevent
about their health and safety. The Company is unsafe activities by following best practices and
committed to managing health and safety risks through the implementation of effective management,
associated with our business and is actively working human resources and operational policies.
towards improving our procedures to reduce,
remove or control the risk of fire, accidents or Keeping in view the occupational health of
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employees, regular first aid and Cardiopulmonary Maple Leaf and Al-Shifa International
Resuscitation (CPR) training programs are conducted
to ensure safe health of workers. Along with this, the To provide state of the art health facilities to its
Company also has its own hospital and trauma centre employees and local community, the Company has
at the plant site. built a hospital at its plant site in collaboration with
Al-Shifa Islamabad. Shifa International is a known
In recognition of the Company’s effort to promote name in Pakistan with hospitals in Islamabad and
environment friendly practices, The Professionals Faisalabad. Maple Health Care Centre operated
Network has declared Maple Leaf Cement Factory by Al-Shifa International Hospital Islamabad, was
Limited as winner of 8th International Awards on completed during the financial year 2017. The free
Environment, Health & Safety for the year 2022. medical and hospital centre is treating patients with
the help of quality human capital working there.
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Measures for Consumer Safety No employee is allowed to run a parallel business. The
Company is maintaining sophisticated Oracle based
The Company takes full responsibility for its online software using which any employee can report
consumer’s safety. As a result of this commitment, the non-conformance (NC) to the top management.
the company focuses on its quality assurance at all All the NCs reported are being addressed by the top
levels of production. The purpose of quality assurance management on timely basis and a regular follow up
is to make sure that our products not only meet activity is being carried out in order to ensure that
the standard requirements but also the consumer all issues highlighted are being resolved permanently.
Moreover, the company has also formulated whistle
expectations. We ensure that our products are
blowing policy.
delivered in a quality and timely manner complying
with safety and legal requirements. The Company
QUALITY MANAGEMENT SYSTEM
takes care and applies appropriate procedures to
manufacture cement products so as to ensure that The Company manufactures cement through the
no harmful substances are present in its products. plant based on state-of-the-art technology of world
The Company has a strict policy to control any activity renowned FL Smidth A/S Denmark. Quality is
which is against the consumer rights. This is why assured through systematic and effective adoption,
MLCFL has always been the first priority of cement implementation, monitoring and continuous
consumers due to its superior quality products giving enhancement of quality control systems using latest
an edge to the Company in the intensive competitive methods of analysis. To ensure that each bag being
environment. used by our valued customers / consumers is of the
highest quality, all stages of the production process
Business Ethics & Anticorruption Measures right from the selection of raw materials, drying,
grinding, homogenization, clinkerization and the
The Company, through its training, management finished product are tested rigorously. The quality
standards and procedures, aims to develop a check parameters during each level of the process
disciplined and constructive control environment are monitored and controlled by the latest version
in which all employees understand their roles and of technology & equipment connected on-line with
obligations. Employees are encouraged to report any Central Control Room through PLC system. The
deal that may be supported by kickbacks. frequency of sampling and testing along with control
parameters is defined.
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charitable institutions on a consistent basis. The its Master Mistri Program. Under this program, the
Company has been recognized by Pakistan Centre company aims to enhance skills and standard of living
for Philanthropy as a leader in social and charitable of masons. To facilitate the program, the Company
contributions and strives to be a constructive member has built a state-of-the-art Masons’ lounge at its plant
of the communities in which it has a presence. site for boarding and lodging of masons. Through this
Kohinoor Maple Leaf Group has received “Corporate program the company not only achieves its social goal
Social Responsibility Award 2021” on account of of creating a skillful workforce but also a pull effect by
its performance in various projects. The Company locking-in its customers and is consequently able to
has taken an array of initiatives for the welfare of its tap the potential markets proactively.
workforce, local community as well as stakeholders.
Education
The Company has also contributed in medical social
sciences project and in this regard, Company’s Board Provision of quality education plays a vital role in
of Directors and the Board of Directors of Kohinoor refining the livelihoods of people as well as towards a
Textile Mills Limited (KTML) have jointly donated to prosperous society. As an organization, we understand
Gulab Devi Educational Complex, Lahore towards that education not only helps in the benefit of the
construction of Al- Aleem Medical College in Gulab society in terms of reducing poverty and crime but also
Devi Chest Hospital (GDCH), Lahore. The construction provides benefits to people in the form of opportunity
of said project was completed during the year. To to earn higher incomes that would eventually lead to
ensure transparency and accountability, a committee better living standards. The Company is fully aware of
of the members of the Board monitored the progress its responsibility towards imparting quality education
of the project from inception to completion on periodic to future generations. Educating the children, ranks
scheduled meetings. the best future investment for long term growth and
is the core heart of the Company’s CSR initiatives.
The addition of a state-of-the-art Cardiac facility These initiatives are aligned with our SDG 4. The Al-
named as Sayeed Saigol Cardiac Complex (SSCC) at Aleem Medical College in Gulab Devi Chest Hospital in
GDCH is also a symbol of the Company’s consistent Lahore is an example of MLCF’s contribution towards
drive toward community welfare. encouragement of education. Together with the
Kohinoor Textile Mills Limited, the Company donated
to Gulab Devi Educational Complex for this project.
Master Mistri Program
One of the leading brands of cement, MLCF indulges Furthermore, the Company facilitated various schools
itself in plans that have a dual outcome; the company over the years, the list of significant completed projects
as well as the people in the community. As a result of our in recent years are as follows:
commitment towards this objective MLCFL launched
Procedures Adopted for Quality Assurance: • PC Based Automatic Calorimeter and Sulphur.
• Determinator to analyze fuels.
Main purpose is to ensure that the cement produced • Latest Automatic Compressive Strength
not only meets all the standard requirements to which machines for determination of cement
the Company is certified, but exceeds the customers’ compressive strength.
requirements and expectations. To achieve these • Latest whiteness tester.
goals, the Quality Control Department has adopted
various procedures and is fully equipped with state- COMMUNITIES AND WELFARE
of-the art technologies such as:
The Company has a strong tradition of good
community relations and its employees are actively
• X-ray Fluorescent Analyzers and X-ray Diffraction
involved in welfare schemes. The Company believes
Analyzer to analyze chemical and mineralogical
that investing in communities is an integral part of
composition.
social commitment to ensure its sustained success.
• Online QCX system software.
The Company aims to ensure that it has the resources
• Sample preparation tools such as a jaw crusher,
and support to identify those projects, initiatives
sample dividers, disk grinding mill, mixer mill and
and partnerships that can make a real difference in
press mills.
communities.
• Automatic Moisture Analyzers.
• Precision Electronic Balances.
For community investment and welfare, the Company
• Drying Ovens & Furnaces.
acknowledges its responsibility towards society and
• Lab Glassware.
performs its duty by providing financial assistance
• Automatic Free Lime Apparatus.
to projects for society development by various
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Best Corporate Report Award this regard, Christmas party was arranged both at
Head Office and plant site on the 24th December
The Company keeping alive the tradition of winning
2022 to celebrate with the Christian community
the Best Corporate Report award in Cement
Category jointly presented by ICAP and ICMAP and on their joyous occasion.
has won 2nd position award for the year 2021. This
award was presented to MLCFL management on • Civil defence week was held for training of staff.
September 27, 2022. MLCFL is the leader in most
transparent and easily understandable Financial • The Company has always concerned itself with
Reports thus reflecting the sound financial systems of the safety of the general public. To that end, it
the Company. These recognitions have strengthened aided in the setup of a speed monitoring system
the Company’s resolve to be positioned the best in for the police force and assisted in the promotion
the area of corporate reporting. and execution of a road safety campaign. It has
also distributed safety helmets to the general
Contribution to National Exchequer public at Mianwali.
During the year, Company has contributed an amount
of Rs. 22,358 million towards national exchequer in • In recognition of the efforts of the police force, The
shape of taxes, duties, cess, levies etc. The Company Company has constructed a Yadgar-e Shuhada
has also contributed through earnings of valuable Monument and Rest Houses at Mianwali Police
foreign exchange amounting to US$ 6.9 million. lines.
National Cause Donations • The Company has also facilitated in the

development, renovation and beautification of
The Company has launched numerous CSR initiatives Mianwali city. A number of bus stands and city
as per DC Office requirements. Financial assistance monuments were constructed.
was also provided for the DPO ISO certification
training program. Moreover, the Company has also • For recreational purposes of the locals, a cricket
made generous donations in the form of cement. ground was revamped. In addition, a football
ground was rehabilitated and a number of aviaries
Additional Welfare Schemes constructed at Kashmir Park, Mianwali. Housing
birds of all kinds, aviaries allow large open spaces
• Maple Leaf recognizes its responsibility towards
the inclusion of other religious communities. In for the birds to live in safety.
also to the local residents. The Company has provided

Sr# Project Name Description
buildings and complete infrastructure to these
1 Police Lines Fully sponsored con- schools. In addition, the Company gives a monthly
Public School struction and provision
subsidy to partly cover the running expenses. About
Mianwali of furniture for 10
class-rooms 2,287 students are currently enrolled in these schools.
Further, the company provides employment to 117
2 Police Welfare Construction of audi- teachers and 30 non-teaching staff.
School Mianwali torium
Jungle Mein Mangal - Vehicle Parking Space
3 PAF Base Mon- Construction of 2 class
(Vps)
tessori School rooms
Mianwali
The Company believes that the most effective way
4 DPS School Construction of bound- to maximize customer experience is to move beyond
Sargodha ary wall and provision mere customer satisfaction and connect to all the
of furniture and allied stakeholders. With this strategy in mind, the Company
support facilities has established an exclusive hotel to provide truck
drivers a lifetime experience. While vehicles are in
Moreover, the Company has established four schools queue for their turn, instead of waiting for long, drivers
in Iskandarabad city, which provide quality education can visit the hotel to relax with the touch of fun and
not only to children of employees of the Company but refreshment.
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ENVIRONMENTAL parties like Eco Green on board, help us in monitoring
and complying with all key indicators as suggested
Cement Factory recently and have awarded MLCFL with Best Performance Award in 2022.
PERFORMANCE by various government authorities. Therefore, we MLCFL management strives hard for the most efficient use of resources and cleaner production. In
staunchly work on managing the negative implications pursuance of these intentions, MLCFL has a total installed electricity generation capacity of 37 MW
An environmentally friendly approach has always of our production on the environment and overall through Waste Heat Recovery Power Plant (WHRP) which is a renewable energy source thereby, reducing
been MLCF’s way of going about the business. We climate change. Monitoring of environmental factors is possible fossil fuel emissions and reducing load on national grid through captive generation. WHRP of
understand how our operations have an impact on conducted by EPA certified environmental laboratory; MLCFL is also an approved CDM Project in Pakistan depicting the concern and attitude of management
the environment and take full responsibility towards SGS Pakistan (Pvt.) Ltd. The monitoring is carried towards cleaner environment.
it. Just like how critical and sensitive we are about out according to Self-Monitoring and Reporting by
our new projects, we’re equally concerned about Industry Rules, 2001 (SMART). Appreciating the contributions made by the company, the National Forum for Environment and Health
the effects it will have on our environment in future. (NFEH) presented MLCFL with the award for excellence in Health, Safety & Environment.
In order to fulfil our duty as a responsible corporate As a result of energy crisis in the country and
citizen, we work on our precautionary plans side by environmental impacts of fossil fuel, MLCFL Material Usage:
side with our project planning. Having independent management has already installed 12.5MW of Solar
We understand the importance of limited resources and their availability to our business today. Not only is
PV Systems for a cleaner and sustainable plant
it crucial for our current economic performance but also for the continuity of our business in the long run.
operations. This effort is another renewable energy
source apart from Waste Heat Recovery.
A number of different materials and chemicals are used in the cement production however the major raw
materials involved in the production are limestone, gypsum and clay that we extract from mines through
MLCFL management is very vigilant about carbon
our suppliers/contractors. Our Team Improvement, which comprises proficient personnel, encourages the
foot prints and environmental impacts expected
sustainable approach through their quality management systems. Through this team we aim to control
from the operation of the plant and hence have
and manage our raw material consumption so that they are neither exploited nor wasted. In addition to
taken applaud able measures and have spent huge
this, suppliers and contractors at Maple Leaf Cement are educated and informed about our environmental
financial resources for environmentally sustainable
goals and require them to adopt environmental management practices aligned with these goals. Similarly,
operations. Environment Protection Agency (EPA)
Punjab has also recognized the efforts of Maple Leaf
138 139
to avoid wastage of raw materials, production of contributor to climate change. Air emissions are a donations and money to numerous environmental Environmental Protection Agency (EPA) and Mines
cement is planned and executed according to the key environmental aspect of cement production. campaigns at Mianwali city aimed to realize a green and Mineral Department, Government of the Punjab.
demand in the market. Therefore, at Maple Leaf, we believe it is our rightful and clean Pakistan. Plants have been donated to The Company planted approximately 10,000 trees
responsibility to reduce emissions as much as DC office at Mianwali as well as the Environmental in the exhausted quarry area. The results have been
Energy: possible. As an operating principle, the Company at Protection Agency (EPA). Furthermore, donations encouraging, of how habitats can be created through
all cement production lines measures and manages have been made to plant trees at Judicial Complex close collaboration with the scientific community, local
Since the production of cement is energy-intensive, air emissions. MLCFL monitors the dust, NO2 and and police stations at Mianwali. The Company also stakeholders and government agencies. Some of the
efficient energy management is important to MLCF. SO2 emissions from clinker produced. planted 12,000 trees during the yar enabling the total bird species, and several species of dragonflies and
For this we have developed a Team Energy that is count during the last 6 years to cross 162,700 plants at damselflies, have been observed at the site. Evolving
striving to attain maximum energy efficiency with The sustainability mission requires businesses to different locations within factory premises and nearby over time, the biodiversity program demonstrates that
environmental protection at minimal cost including adopt cleaner technologies and efficient processes. areas to provide a healthy environment to employees wildlife can flourish alongside industry.
development of alternative sources like efficient At MLCF, we have our own equipment with the and other communities living in surroundings. The
usage of Waste Heat Recovery Boiler and installation likes of TESTO 350, Mini-Sampler & Air pointer to plantation campaign is underway and trees have been Water Management:
of LED lights. measure the stack of emission on a fortnightly basis. successfully planted at various schools in Mianwali
Other than that, continuous monitoring of ambient city. This activity will continue in the future and further Water scarcity is an issue faced by communities
The Company has an active Waste Heat Recovery air is also undertaken along with an EPA approved trees will be planted to ensure a healthy and green globally. Amid rising population, climate change,
Plant (WHRP) at site which converts heat from the kiln lab which is functional to assist with the emission environment. lowering of ground water table and an archaic
into energy, which was previously lost. Waste heat is monitoring and compliance. A comprehensive report distribution system, Pakistan is drastically vulnerable,
the cheapest mode of electricity currently available to is submitted on monthly basis. Improving Biodiversity through Quarry with the threat of a water crisis. Businesses in Pakistan
the Company. The emissions are significantly reduced Rehabilitation have an added responsibility to have an efficient
and herewith it relieves the atmosphere radically. The With the help of these technologies and systems, we water management system and policies in place. At
Company has completed its expansion of existing are already below the legal allowable emission limits. At the quarry, we undertook a rehabilitation project MLCF, water management is an integral part of our
Waste Heat Recovery Plant which has increased to to create habitats for species, joining forces with the sustainability approach. Although, manufacturing of
a total capacity of 25 MW, resulting in substantial Effluents and waste:
saving in power cost.
Traditionally plants in cement industry are assumed
In addition to above, the Company has also completed to be lacking the environmental friendliness however,
work on a new Waste Heat Recovery Plant for new MLCF’s efforts to stay ahead of the curve by installing
cement Line-4. The planned project has increased state of the art equipment to control industry
capacity further from 25 MW to 37 MW. effluents. We aim to keep the environment healthy for
both our employees and the community. Therefore,
The Company’s 100% owned 40 Mega Watt Coal the company carries out certain efforts to overcome
Fired Power Plant after successful commissioning this issue. The operational activity at plants is
has also reduced our dependence on the national regularly monitored for stack emissions and effluents
grid. By adopting an approach of consistent efficiency complying with National Environmental Quality
management, the Company was able to obtain Standards. In addition to this, the company also has
additional energy approximately 2 MWH through state of the art FLSmidth A/S cement manufacturing
optimum use of coal fired boiler yielding extra steam technology along with world class dust collection
which was utilized for the generation of electricity in electrostatic precipitators and bag filters to help in
waste heat recovery plant with nominal investment. environment protection. The Explosive Magazine is
Moreover, augmenting the energy conservation drive, also regularly checked for environmental issues. At
occupancy-based sensors are installed in head office reporting date, no potential hazard/threat was found
to control air-conditioning and office lighting based to the environment.
on physical presence in the room. Also, to utilize
renewable sources of energy in future, the Company Plantation drive:
has currently placed wind monitoring units based on
German technology at various locations near plant To enhance environmental standards and continuously
site to evaluate the feasibility of wind power. promote a better and green environment within the
factory as well in the nearby areas the Company
Tackling Air Emissions: is arranging regular Tree Plantation activities that
occur twice a year. The Company has over the years
Greenhouse gases, emitted into the environment earnestly contributed heapful sums in the form of plant
as a result of combustion processes, are a major
140 141
cement is a relatively dry process; nevertheless, water water management. A traditional basin taps pours 10- The Company has formed a corporate social responsibility committee that plans, executes and monitors all
is still used for cooling down clinker. The water used in 15 liters of water per minute while sensor taps pour corporate social responsibility activities with approval of the Board of Directors.
the process coverts into steam that is reused to create no more than 6 liters. The fact that there is a self-
electricity by using waste heat recovery plant. closing mechanism on the taps ensures that there is The Company also executes the training sessions to create the awareness regarding corporate social responsibility
no sink overflow and cuts off the water supply based objectives.
In addition, the fully operational waste water treatment on sensor proximity, hence saving up water.
plant at cement housing colony at plant site treats an All corporate social responsibility activities performed by the Company are mentioned in corporate social
estimated 300m3 of water per day, so that damage Go Green responsibility section of this report.
and negative impact to the local ecosystem is avoided. Following is the compliance status of major areas as described by corporate social responsibility guidelines:
The Company for maintaining a healthy and green
Overall, the company tries to use water in a responsible environment, celebrated the “World Environment
Guidelines Assessment Company Initiatives
manner and makes sure there is no wastage of water Day” in coordination with District Officer Environment
at any point of business activity. The company also Mianwali along with other community stakeholders
A) Does the Company have Yes The Company has implemented the CSR gover-
celebrates ‘The World Water Day’ at the site in the on 5 June 2023. The main aim of celebrating implemented the CSR gov- nance. The Company holds the training sessions
form of a seminar with a purpose to raise awareness World Environment Day was to demonstrate the ernance? and CSR is agreed by the Board of Directors.
of water preservation and its right use. continual efforts and commitment of the Company’s
Management for the healthy working environment
While we understand the cruciality of water and awareness of people through the Environment B) Does the Company have Yes The Company has CSR team to implement CSR
conservation, providing access to clean water to Walk and Seminar in pursuance of the community committee to implement policy. And they are responsible for planning,
communities is also a part of Maple Leaf’s sustainable investment and welfare schemes. In pursuance of CSR policy? execution and progress.
strategy. As part of the action plan, the Management the green vision and commitment of management
C) Does the Company have Yes The Company has clear CSR management sys-
launched a water supply scheme project at ward of the Company for maintaining healthy and green
CSR management system? tem that takes care of CSR progress and short-
No.1, Daud Khel. The local water supply was environment, “Earth Day ‘’ was carried out at Maple comings.
unsuitable for both drinking and agricultural purposes Leaf Cement Factory Limited Iskanderabad, Mianwali
due to its salinity. In order to provide a solution to on 22 April 2023. The main aim of the ceremony was D) Does the Company have Yes The Company has clear vision regarding areas of
this issue, the company installed a water turbine to demonstrate the continual efforts and commitment clarity of areas of CSR CSR projects that include health, education and
system which supplies fresh water from the nearby of the Company’s Management for the healthy working projects? clean water.
Mianwali canal, thereby uplifting the life and prosperity environment for its workers as well as for the people in
E) Does the Company have Yes The Company has committee for implementation
of the community. This initiative has been benefiting the neighbourhood of the Company.
implementation structure? of the CSR policy. They are responsible for the
households, farms, schools and hospitals through
monitoring of CSR targets.
access to fresh water. The design of the project was Status of Compliance of the Corporate Social
formulated with a forward-looking vision to ensure Responsibility Voluntary Guidelines, 2013 F) Does the Company allocate Yes The Company allocates certain proportion of
that there are no water shortages in the area and a resources to CSR Policy? funds and human resources for the CSR objec-
necessity of life is available to all. This clean drinking The Company acknowledges its role and responsibility tives.
water initiative also extends to our own employees to contribute towards community and is fully aware of
and workers, active water filtration plants located at its corporate social responsibility. The Company has G) Does the Company have Yes The Company has presented the financial disclo-
presented CSR disclosure sure in financial statements and nature of projects
the factory and residential areas at MLCFL protects been involved in various voluntary projects in different
and reporting? are also disclosed in CSR section of this report.
the health and wellbeing of all consumers. Drinking areas of the community needs and focusing mainly on
water is tested for chemical and microbiological education, health, clean water and environment.
contamination at: H) Does the Board approve of Yes The Company has displayed its CSR activities on
To structure the process of corporate social placing the CSR report on the company website.
• China Colony Filtration Plant responsibility activities, the Company also takes website of the Company?
• Guest House Filtration Plant guidance from Corporate Social Responsibility
• China Colony Mosque Voluntary Guidelines, 2013 as issued by Securities and
Exchange Commission of Pakistan. The Company
Water management is not only applied at our plant has devised a corporate social responsibility policy
site, but also at our head office. Installation of sensor keeping in view the areas that need the contribution
taps in replacement to traditional basin taps adds to and that are align with the company’s vision.
the list of efforts made by the Company for efficient
142 143
ISO 14001:2015
In order to mitigate the effects of industrial effluents on surrounding
environment, the Company is putting forth all efforts for providing
healthy environment to employees and natives. In this regard, the
Management has a strong commitment and dedication towards
improving the environment. The Company has installed most modern
and state of the art equipment to control industry effluents including
tree plantation drives held every year.
In May, 2021 MLCFL was awarded certified to be compliant with the

requirements of ISO 14001 after fulfilling all the obligations and goals
set out in the standard. ISO 14001:2015 sets out the criteria for an
environmental management system and maps out a framework that
an organization can follow to achieve its environmental goals and fulfil
its environmental obligations. The Company is committed to ensure
that the guidelines of standard are fully met in order to make ISO
14001 a sustainable program.
Achievement of ISO 45001:2018
MLCFL has a clearly defined management system in place to identify
and control health and safety risks. We are able to minimize risks to
our workforce, visitors and external contractors on our premises. The
achievement of this standard has enabled us to put in place processes for
continuous review and improvement of occupational health and safety.
A structured health and safety management system throughout the

organization demonstrates our commitment to the welfare of our staff
and external parties.
By achieving ISO 45001:2018, MLCFL gained competitive
advantage by:
• Minimizing the risks of production delays.
• Providing a safe environment to do business.
• Demonstrating our commitment to maintaining an effective health
and safety policy.
• Increasing reputation.
• Increasing opportunities to gain new business.
• Minimizing risks of downtime through accidents.
• Demonstrating our commitment to meet legal obligations.
• A robust system to maintain and continually improve health and
safety.
144 145
IT GOVERNANCE POLICY
AND CYBERSECURITY
retrieval etc. Risk Oversight and Cybersecurity:
• Restricting unauthorized access to ensure integrity
of information. Board of directors of the Company has given the task
• Integrity of information to be assured by protecting to IT Steering Committee to assess the risk level of
it from unauthorized modification, disclosure or cybersecurity and align with management to address
interruption. this risk based.
• Disaster recovery plan to have in place which is
tested occasionally to ensure that the system and The Audit committee also considers, reviews and
services are available within bear minimum time. evaluates the cybersecurity risk while performing
• Educating the employees about IT security policy risk oversight function. Adequate budget is also
and cybersecurity threats. approved by the Board of Directors to be set aside for
• Reporting all actual or suspected information upgradation of IT structure, strengthening of controls
security breaches to the internal audit for further related to cybersecurity.
investigation.
• Making rules for all employees who have the access Board Level Committee Charged with oversight of
and use companies IT assets and resources. IT governance and cybersecurity:
IT Governance and Cybersecurity Programs: The Company has formed a committee that
comprises of Board members which is charged with
Board of Directors have devised a strategic level policy oversight of the IT Governance and plays pivotal part
of IT Governance and Cybersecurity that is aimed to motivate the management to take the ownership of
to ensure smooth functioning of the IT framework cybersecurity and also understands and ensures that
and protect IT structure from all potential threats. To its well understood across the Company as strategic
support this policy, standards procedures have been and critical function. Discussion on assessments of
developed for its implementation, monitoring and such risks, its evaluation by internal or external teams
control. These standards comprise of rules, guidelines and how to improve/implement further controls are
and procedures covering areas such as cybersecurity the agenda points this committee’s meetings.
threats, backup, endpoints users’ control, data
security and password: The Committee review the controls, procedures and
also the reports of the external teams paying attention
• All the employees have the responsibility to adhere to their suggestions and also considers if any of the
to the policy controls need to be implemented or changed.
• It is the responsibility of Internal Audit to
Board of Directors of the Company has properly overall operations in general and IT specific decisions document the policy and provide guidelines for its Controls and procedures for early warning system:
documented and implemented IT Governance Policy in particular. implementation
to ensure an integrated Information Technology • Line managers have the responsibility to not only Changes are coming very rapidly relating to networks
framework for evolving and maintaining existing The salient objectives of the IT governance policy are adhere to policy by themselves but also ensure due to evolving threats, growth and application of new
IT infrastructure and acquiring new to achieve the as follows: compliance by their staff changes in the regulatory or legislative framework. The
Company’s strategic focus. The purpose of this Company implemented to access rights’ mechanism
policy is to define the IT governance scope, design • Establishing the guidelines for decision making The Company has formed a steering committee to control the unauthorized access of the system.
procedures and assign roles and responsibilities to pertaining to information technology and which is charged with the responsibility of making
ensure its effective implementation and avoid any encouraging related initiatives. teams for the implementation of controls addressing The Company has implemented multiple standard
threats mainly cybersecurity risks due to potential • Setting information technology goals and cybersecurity attacks, mitigations of related risks, controls to protect systems and data i.e., firewall,
breach. formulating the strategy to achieve them. ERP disruption and compromise of data or email. email encryption/decryption, email gateway and
• Communicating the established companies’ end point security systems which is monitored and
Board responsibility statement on the evaluation priorities relating to information technology. To cope up with unforeseen incidents, the Company analysed by system logs.
and enforcement of legal and regulatory • Designing the procedures of resource allocation. has formulated following controls:
implications of cyber risks:
Management uses a very effective tool called as
One of the most integral parts of IT governance • Identification and assessments of such threats by “Firewall log analyser” for analytics and reporting of
The Board of Directors have implemented policy is the security of the IT structure. The purpose internal and also external teams; logs of such activities. It enables management to
comprehensive IT governance policy that is in line with of IT security is to protect confidential companies’ • Systems audits on periodical basis. Procedures manage, respond, automate and devise complete
the Companies organizational goals and objectives. information from all kinds of threats whether intentional to be applied during system audits include plan identify and evaluate the details of the attacks.
The policy is aimed to design the governance structure or accidental, internal or external. Threats also include penetration testing, cybersecurity audits for
and also specify the rules and responsibilities covering cybersecurity threats. ensuring safety of IT structure, IT audits by internal Other measures include end -t0-end security
the significant parts of IT framework. By ensuring the
and external experts, vulnerability testing; and arrangements, threat detection, security analytics and
effective implementation of this policy the Company The salient features of IT security policy are as follows: • Adequate information backup facilities deployment of firewalls.
has been able to obtain risk free, efficient and effective • Regulatory and legal requirement’ compliant
information for the decision making for companies’ procedures e.g., record keeping, retention and
146 147
Policies related to independent comprehensive Cybersecurity insurance:
security assessment.
This is an agreement by which some or all of
the cybersecurity risk can be transferred to the
The Company has implemented information
insurance companies offering such services in return
technology security policies that correlates with
of insurance cost.
Company’s organizational objectives and are also
in line with industry regulations. Board of Directors Cybersecurity insurance is a new phenomenon and
always encourage and offer unreserved support by is emerging as serious industry.
participating in the assessment, development and
Although, the Company has not obtained any
enforcement of third-party security assessment of
cybersecurity insurance, however, controls have
IT structure and their findings pertaining to security
been implemented to avoid threats or minimize
level of the Company for the betterment of the
the risk of loss due to these threats. In near future,
overall IT function.
Company may consider the need to obtain this
insurance to cover this risk.
The Board considers the findings of third-party
assessment, evaluate the suggestions therein and The Company has adapted many modern
implement them as per the resources and need measures to transform manual process into
basis. The Company has also conducted the 3rd modern, digital and smart machines.
party review to assess the system security and
report shall be received on 1st October 2022. In The Company has adapted many modern measures
order to monitor the progress of this report matter is by following Industry 4.0 revolution to transform
under discussion in Improvement Forum. manual process into modern, digital and smart
machines. With every passing day the technology
Disaster recovery plan and contingency: is evolving and new advancements are being
brough keeping the changing needs of the users
The Board of Directors has approved and and potential threats being faced by them. It has
continuously reviews the IT Governance Policy and been sometime that a fourth industrial revolution has
Business Continuity Plan of the Company and as a emerged, called as Industry 4.0. The Company is
result has implemented a well-established Business in process to adopt cloud-based technologies for
Continuity and Disaster Recovery Plan in case of any its business. Project has already been initiated to
business disruption due to unforeseen incident. move all data on cloud to mitigate this issue. The
Company is monitoring the progress of this project in
The plans provide assurance on resumption of improvement forum. By pursuing this way, products
services to normal in case of any disruption in the and means of production get networked, enabling
shortest of time with no/minimum financial loss to new ways of production, value creation, and real-
the Company. All resources have been trained to time optimization. This will help management to plan
perform the critical services in case the primary site and deploy resources in the most efficient ways by
is partially / fully inaccessible. Other areas that have interconnecting all the processes and this will also
been addressed in this plan are as follows: make monitoring of the processes easy and efficient.
Efforts to mitigate Cybersecurity Risks:
• Business continuity plan;
The Company’s steering committee has directed IT
• State-of-the art construction with building and team to do the following efforts to minimize the risk
other structures being fire resilient, earth quake of cybersecurity
proof and equipped with firefighting equipment; • Regularly arrange organized trainings for staff
to follow best standards procedures to avoid
• Plan updates with any recent changes in potential cybersecurity threats & risks; and
potential threats;
Conduct information security awareness session
• Recovery plan covering IT and other infrastructure on regular basis. This will create awareness
among users about potential threats, means of
The Business Continuity and Disaster Recovery attacks, computers’ vulnerability, protection of
Plans are tested periodically and based on testing confidential data. Effective sessions cover all the
reports the plans and corresponding controls are possible mistakes that employees may make and
upgraded to ensure that there would be no delay in compromise the personal information, Company’s
providing the services. confidential and competitive information or may
become victims of cybersecurity attacks as a result.
148 149
FORWARD LOOKING
STATEMENT
increase of 27.94% as compared to previous year, as Impairment of financial assets
Cement demand has been modestly growing in local Sources of information used for projections of
prices were increase to deal with the devaluation of
market in the past few years, with the current year future revenue: The impairment loss on financial assets is calculated
trend exhibiting promising future growth in demand Pakistan Rupees. However, the sales were less than based on the forward looking ‘expected credit loss’
as the Government expresses renewed dedication The company carries market survey through its the last year’s projection. model (ECL) which assumes that there is always an
to recover from the delays caused by slowdown in sale teams to know the market trends, customers’ The higher sales margins also impacted financial expected loss component to every loan/ receivable
CPEC projects, whereas simultaneously announcing demand. The management also extracts information costs of the company as higher profits led to greater which management must make a judgement on,
ambitious development projects, PSDP allocation from the policy factors announced by the government, operational cash inflows prompting the company to all of which is extensively detailed in note 49 to the
boost and construction packages. The cement sector economic data available on State Bank of Pakistan’s shed off its reliance on short term borrowings and financial statements.
has seen robust expansions in the past in the form of website & other sources, international trends/forecast utilize its internal generations for working capital Estimating useful life of assets
capacity enhancement projects and is currently in the of coal prices, macroeconomic factors affecting requirements. With State Bank of Pakistan’s policy rate
period of expansionary growth and better utilization currency fluctuation and inflationary trends. also increased from 13.75% to 22%, the Company’s The useful life of assets is reviewed annually and
of capacities as market conditions continue to cost of debt also went up. are estimated based on numerous factors such as
improve. To get benefit from the upcoming demand Assistance taken by any external consultant. asset usage, maintenance, rate of technical and
of cement, the Company has already started its Status of the projects in progress commercial obsolescence.
capacity enhancement project Line 4 at its existing
No assistance has been taken by external consultants
plant site which has now commenced production. The company is undergoing expansion of Waste
for the forecasting. Taxation
Measures taken by the government and stability in Heat Recovery Plant for this new cement Line-4. This
the law-and-order situation is a good sign in national project is expected to increase capacity further from Determining income tax provisions involves judgment
Financial Projections
politics, however, recent developments in the shift of 25 MW to 37 MW. In this regard, the Company has on the tax treatment of certain transactions. Deferred
political regime in neighbourhood country Afghanistan The Company expects local dispatches to the market established Letter of Credit for import of equipment tax is recognized on tax losses not yet used and on
may affect the export scenario. Some of the plans for the next financial year to reach higher levels as and civil works have commenced at site. temporary differences where it is probable that there
announced by the government dams/water reservoir reported in 2022-23. We presume current cement will be taxable revenue against which these can be
construction and an increase in private sector prices to rise in the domestic market to pass on the The Company is also considering investments offset. Management has made judgments as to the
spending in housing sector after announcement of impact of robust increase in coal rates in international in sustainability and renewable energy, with the probability of future taxable revenues being generated
subsidized housing finance scheme may result in market and local inflationary impacts. Whereas, the commencement of a solar energy project at its plant against which tax losses will be available for offset.
increased demand of cement in future years as well. cement industry is also keenly eyeing developments site. Employee benefit scheme
However, the timing to implement these projects will on CPEC and this opportunity is expected to prove to
be highly important to forecast the performance of be of great benefit for the whole nation. The company Status of the projects previously disclosed The defined benefit obligations are based on actuarial
the Company. Hence, we are hopeful that cement also aims to improve its market share through its assumptions such as discount rate, expected rate
demand will continue to increase in coming years as constant vigorous marketing and branding activities The Company has now completed capacity expansion of return on plan assets, expected rate of growth in
the work on these projects will gain the desired pace to capture, retain and build a wide customer portfolio. project to increase its grey cement production by salaries and expected average remaining working life
and the economic situation gets favourable. A control Oil and coal prices are expected to go up in the future of employees which are extensively detailed in note
7,000 tpd by constructing a new brownfield plant.
over production overheads and input material cost is which will adversely affect profitability. Based on 15 to the stand-alone financial statements.
Plant has begun commercial operations in 3rd
imperative for future success, in addition, government management’s best estimates, future consolidated quarter of financial year 2023.
policy, favourable taxation reforms, stable economic FAIR VALUE OF PROPERTY, PLANT AND
financial forecast of MLCFL and its wholly owned
condition, better consumer purchasing power and EQUIPMENT
subsidiary MLPL are as follows: KEY SOURCES OF ESTIMATION UNCERTAINTY
attractive export margins will all play an important role The Company’s buildings on freehold land, roads,
to absorb increased supply pressure of cement in the Financial Year 2024 bridges and railway sidings and plant and machinery
The preparation of financial statements requires
market as a result of capacity enhancements. Rs. in Million are stated at revalued amount being the fair value
management and the Board of Directors to make
Sales – Net 62,756 estimates and judgments that affect reported amounts at the date of revaluation less any subsequent
The Company’s main aim is to keep production costs Profit after taxation 5,501 accumulated depreciation and impairment losses as
of assets, liabilities, revenues and expenses and
at lower level and to increase its market share. The Paid up share capital 10,733 per stated company policy. Freehold land is stated
related disclosure of contingencies. These estimates
Company is continuously monitoring all of its cost EPS (Rupees) 5.13 at revalued amount being the fair value at the date of
are based on historical experience and various
factors to keep them at the lowest possible levels. revaluation less any subsequent impairment loss in
other assumptions that management and the Board
The addition of grey cement line IV is fuel and energy Company Performance against Last Year the financial statements.
efficient and has significantly enhanced capacity by believe are reasonable under the circumstances, the
Projections results of which form the basis for making judgments
7,000 tons per day. SUMMARY OF SIGNIFICANT / MATERIAL
A moderate stance was taken for the year under about the carrying values of assets and liabilities that
ASSETS OR IMMOVABLE PROPERTY
The production costs are anticipated to increase in review as the economy had receded to negative are not readily apparent from other sources. Actual
future due to non-controllable factors like rising input growth, PSDP allocations were cut, inflation was an results may differ from these estimates under different The Company’s material assets comprise of land,
material costs especially coal, electricity from National all-time high and industrial growth as well as consumer assumptions or conditions. building, four complete cement lines (including
Grid, Pak Rupee devaluation and overall inflation, but demand had stunted. Pakistan’s economy performed one white cement line) comprising of kiln, cooler,
the Company stands committed under the guidance KEY ESTIMATES AND ASSUMPTIONS preheater, raw mills, Wartsila, Nigatta engines and
slower than anticipated as the actual financial results
of its Board of Directors, Key management personals waste heat recovery plant.
deviated to an unfavourable outcome. As reported Key estimates and assumptions concerning the
and valued input from all stakeholder groups to its last year, recovery in sales retention and demand future include:
constant drive to be a progressive and profitable was imperative yet the Company has achieved a new
Company as per its Vision and Core values. milestone of Rs.62.07 billion Net Sales Revenue, an
150 151
POLICY AND PROCEDURES FOR ENTITY’S SIGNIFICANT
STAKEHOLDERS’ ENGAGEMENT RELATIONSHIPS
1) Policy Note: Maple Leaf Cement maintains sound collaborative relationships with its stakeholders. The Company has very prominent and good local road shows/corporate briefings sessions were
relationships with all stakeholders. We maintain held with investors:
2) The identification of stakeholders at MLCF is done on the basis of their relevance, responsibility, influence, collaborative relations with our stakeholders, good
diversity and responsibility towards our business. Their level of involvement, influence and keenness to harmony, effective communication and customer • Corporate Briefing Session (23rd November
engage with our business, helps us in prioritizing the stakeholders. focused approach because without doing this, we 2022)
may affect our Company’s performance and values
3) Procedures: Procedure for stakeholders’ engagement includes effective communication, good harmony, of our entity. We follow the best policy to maintain STEPS TO ENGAGE MINORITY SHAREHOLDERS
compliance with laws & regulations and customer focused approach which is the key success factor for the relationship with our stakeholders which includes TO ATTEND GENERAL MEETINGS
establishment of collaborative relationship with stakeholder. satisfaction of customers by providing quality
products and timely payments to all creditors. The Notice of Annual General Meeting is sent to all
call centre established several years ago is in full shareholders of the Company at least twenty-one
STAKEHOLDERS NATURE OF ENGAGEMENT FREQUENCY
swing and achieves the main purpose of being a days before the date fixed for meeting. Such notice
SHAREHOLDERS Annual general meeting Annually bridge between the Company and its stakeholders is published in Urdu and English languages in at least
Annual report/ Quarterly reports Annually / quarterly including customers and supply chain staff. Moreover, in one issue each of daily newspaper of respective
Investor conference Annually the Company maintains good relationship with its language having nationwide circulation Further,
Analyst briefing Continuous Bankers and also arranges Investors’ Conferences notice of AGM is also placed on Company’s website.
periodically to discuss business prospects and To capture the interest of minority shareholders the
EMPLOYEES Trade unions Continuous financial management plans with the lenders which Company has been conducting corporate briefings,
Maple magazine Quarterly also enhances their confidence in the Company. conference calls and road shows on regular basis
Annual get together Annually including regularly updating our website about
Team cultural activities Monthly POLICY TO SOLICIT AND UNDERSTAND VIEWS Company’s general conditions.
OF SHAREHOLDERS
CUSTOMERS Customer call center Continuous INVESTORS’ RELATIONS SECTION ON
Customer events Continuous The Board understands the importance of CORPORATE WEBSITE
Customer satisfaction survey Continuous continuous collaboration with shareholders of
the Company regarding all significant decisions The Company disseminates information to its
SUPPLIERS Regular meeting with major suppliers Continuous to be made, the performance of the Company in investors and shareholders through a mix of
Supplier forums Occasionally varying circumstances, challenges it faced and the information exchange platforms, including its
Newspapers advertisement As required
necessary steps taken to mitigate those challenges. corporate website. The website is updated regularly
The Board has devised a mechanism to arrange to provide detailed and latest company information
INSTITUTIONAL Business briefings Occasionally
INVESTOR / LENDERS Periodic meetings As required
the interactive sessions between the management including financial highlights, investor information and
Financial reporting Continuous of the Company and its shareholders. It includes other requisite information besides the link to SECP’s
Head office/ site visits As required management briefings to its shareholders about investor education portal, the ‘Jamapunji’.
the performance of the Company, macro and micro
COMMUNITY ORGANIZATIONS Environmental campaign Continuous economic factors affecting the Company, future ISSUES RAISED IN THE LAST ANNUAL GENERAL
Safety management system As required prospects of the Company and the steps taken by the MEETING
Company to improve its performance in challenging
MEDIA Media announcements and briefings As required circumstances. These communications help the No issue was raised by the valued shareholders in
Media interviews As required Board to understand and resolve the concerns of the the last Annual General Meeting held on October
shareholders and to add synergy factor to achieve 27, 2022 at the Registered Office of the Company.
REGULATORS Submission of periodic reports Periodic basis better results in the Company’s future prospects. However, queries raised were explained to the
Responding / enquiring various queries/ As required satisfaction of the Members.
information INTERACTION WITH MAJOR SHAREHOLDERS
HIGHLIGHTS ABOUT REDRESSAL OF
ANALYST Corporate briefing and analysis As required The interactive sessions include the annual general INVESTORS’ COMPLAINTS
Forecasting and financial modelling As required meeting, extra ordinary general meetings, corporate
briefings/road shows, responding to investor queries During the year under review no formal complaints
LOCAL BODIES Sponsorship of local events Corporate As required
either raised on email, website or on telephone. has been lodged by any shareholder of the Company.
social projects As required
BANKS AND OTHER LENDERS Treasury operational transactions Continuous

During the year, following major international and
Financing and borrowing Investments As required
As required
152 153
INTEGRATED
REPORTING
BASIS OF PREPARATION AND PRESENTATION at each step to reflect stark realities, remove errors
and analytically report on future scenarios and where
Maple Leaf Cement Factory Limited is engaged in the relevant, all information is presented in a format
production and sale of cement. Management of the tied and linked to various capitals, stakeholder
Company following the spirit of adhering to the best relationships and how the organization relates to it.
corporate governance practices and it’s reporting Full efforts have been made to disclose all material
thereof is committed to generate greater value for information to its stakeholders unless Management is
the organization and its stakeholders. Keeping of the view that its disclosure would cause significant
in view the globalized business scenario and the competitive harm.
ever-increasing expectations of all the stakeholders
being users of published annual report, integration Even so, the Company is moving ahead with the
tradition of providing information to its stakeholders
of corporate governance briefings, social and
that goes beyond the traditional requirements
environmental information with financial information
of financial reporting framework and other legal
is vital to organizational position and performance
requirements. In the light of evaluating performance
reporting.
in a broader perspective, the Company has drafted
its Annual Report guided by Global Reporting
The Company has adopted the International Integrated Initiative principles to deliver a multi-dimensional
Reporting (IR) Framework to give an overview of the approach to the accounting framework. By doing
Company’s business affairs by presenting all the so, the Company believes the stakeholders gain a
financial and non-financial information considering better understanding of the Company, its business,
the variable interests of a wide range of stakeholders. strategies, opportunities and risks, business model,
The Management is committed to achieve excellence governance and performance which itself is a form of
in transparent reporting in all aspects. The Company value creation for its stakeholders. Sustainability and
annually reviews the IR Framework to continuously Integrated Reporting go hand in hand, by outlining a
improve the quality of information produced, and report structure along the triple bottom line format,
communicates its operations, brand, and financial the company demonstrates its advancement to
structure to the stakeholders. Furthermore, the uphold the essence of the framework.
Company is prepared to manage any risk that may
affect the long-term sustainability of the business and The Report has been prepared in compliance of:-
has progressed ahead in this Report to incorporate all
8 core Content Elements of IR Framework: - • The International Financial Reporting Standards
(IFRS) issued by the International Accounting
• Organizational overview and external environment Standards Board (IASB).
• Governance • Islamic Financial Accounting standards (IFAS)

issued by the Institute of Chartered Accountants
• Business model of Pakistan (ICAP)
• Risks and opportunities • Provisions and directives of Companies Act,

2017
• Strategy and resource allocation
• Code of Corporate Governance Regulations,
• Performance 2019
• Outlook • Core guidelines of the Integrated Reporting

Framework issued by the IIRC
• Basis of preparation and presentation
Management acknowledges its responsibility of

the integrity of this Report and have applied their
collective mind and effort in its preparation and
presentation. All information is internally reviewed
by the command hierarchy, polished and improved
154 155
ECONOMIC
PERFORMANCE
3. Lowering weighted average cost of capital • Initiating and maintaining techniques for optimal
Economic Performance at Maple Leaf is steered by our vision, mission and values along with the goals and
fixed cost absorption and appropriate mix of
targets set by the senior management that results in enhanced performance of the company. The senior
Non-Financial Measures – Non-financial measures operational leverage.
management is responsible for sketching the economic targets for different time periods i.e., annual targets,
including many intangible variables which may
monthly targets, etc. We aim at delivering both direct and indirect economic impacts. Providing returns to
impact performance. Those are difficult to quantify Liquidity Position
investors, paying off to employees and government and suppliers, are all examples of our economic impacts.
as compared to financial measures but are equally • Keeping an eye on funds used in / generated
important. Following are the key non-financial from operating, investing and financial cash flow
ANALYSIS OF THE FINANCIAL AND NON-FINANCIAL PERFORMANCE measures of the Company: activities.
• Reviewing funds used in working capital
FINANCIAL INDICATORS: 1. Stakeholder’s Engagement –Through different management.
committees and forums, management expects • Effectively segregating cash and non-cash items
Actual Results:
to further strengthen stakeholder’s engagement
by increasing the awareness of different All the indicators are devised in the light of these
The Company’s sale increased in current FY 2023 by 27.94% as compared to FY 2022. This increase in sales
qualitative aspects of the business through basic assumptions and are periodically reviewed
is a result of better average retention compared to previous year due to market conditions and passing on the
cross-functionality. and monitored. Furthermore, Company performance
effect of price increase in oil and other input costs. Profitability saw a massive rebound mainly due to increase
variance analysis from corresponding figures of
in sales retentions. Annual Inflationary trend in production costs was averted to maximum possible extent by
2. Customer Satisfaction – The Company places comparative periods and from budgeted figures
efficient buying of fuel and strict monitoring of fixed costs. Following are the main highlights:
great focus on customer satisfaction. Going as comparability over time provides good basis of
forward, this remains a prime objective of the Corporate Reporting. These indicators are finally
2023 2022
management. used to report financial information to all users of the
(Rs. In Million)
financial statements in the form of annual financial
3. Brand Recognition – Marketing efforts will be statements.
Net Sales 62,075 48,520
in place to increase sales volume based on the
Net Profit/ (Loss) 5,770 4,553 philosophy of being a brand where demand for SHARE PRICE SENSITIVITY ANALYSIS
Earnings/(Loss) per share (Rupee) 5.38 4.15 our products will create a pull effect.
Company’s share price is directly linked with the
Budgeted Results: operational and financial performance of the Company.
4. Integrity of managers – Being one of the core
Following are the major factors which might affect the
values of the Company, trainings have been
The profit increased mainly due to increase in local grey cement sale price and retention as compared to the share price of the company in the stock exchange.
planned to further drill this value into the middle
budget on account of robust demand of cement in local market. Following are the main highlights of actual and lower staff.
results as compared to updated budget: 1) INCREASE IN DEMAND:
Significant Change in Accounting Policies, Increase in demand of cement may result
Actual Budget
judgements, estimates and assumption in increase in market price of bag which will
2023 2023
(Rs. In Million) contribute towards better profitability and
Significant accounting policies, judgements, estimates Earning per Share (EPS), which will ultimately
Net Sales 62,075 64,397 and assumptions have been disclosed in notes to the increase the share price.
Net Profit 5,770 3,416 accounts. Any significant change there in has been
Earnings per share (Rupee) 5.38 3.18 properly disclosed in the aforesaid note. 2) INCREASE IN VARIABLE COST:
PROSPECTS OF THE ENTITY INCLUDING TARGETS FOR FINANCIAL AND NON-FINANCIAL METHODS AND ASSUMPTIONS USED IN Any increase in variable costs due to price hikes
MEASURES COMPILING INDICATORS coupled with inflation which mainly includes
coal, power and raw material cost causes gross
Prospects of the Entity – The financial projections of the Company are in line with expected growth in A performance indicator represents parameters and margins to narrow and adversely hits profitability
domestic market share and new potential markets for export sales which are being explored and various factors that may cast an impact of decisive nature on and EPS. This may badly affect the market price
measures adopted by the Company to reduce the cost. Different marketing strategies are being carried out to a company’s financial position, financial performance of the share downward.
increase sales and profitability. or liquidity position. Following are the key assumptions
in compiling these indicators: 3) INCREASE IN FIXED COST:
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: Financial Position Fixed cost primarily consists of financial charges
• Appropriateness of capital mix in the company and other overheads of fixed nature. Any increase
1. Increase in sales volume for all types of products. • Proportion of financial leverage in debt equity in SBP discount rate results in corresponding
2. Reduction in cost of production through: mix increase in financial charges leading to lower
• Change in current ratio net profit and EPS. Conversely, decrease in SBP
a. Savings in fuel cost per ton with more efficient yield and more reliance of local coal, Afghan coal and discount rates results in lower financial charges
pet coke. Financial Performance and higher net profit i.e., EPS. Moreover, price
b. lower power cost including decline in per ton KWH power consumption and by adding cheap • Maintaining high local sales retention. hikes due to inflation for other overheads of fixed
source of energy. • Monitoring key components of variable cost to nature results in reduction in net profit.
be amongst top cost-effective players.
156
157
4) CHANGE IN GOVERNMENT POLICIES: Segmental review and analysis of business • However, the consolidated financial statements Financial Leverage: Too much debt can be
performance have been prepared based on two strategic dangerous for a company and its investors.
Any change in Government policies related to divisions, which are reportable segments. However, if a company can generate cheaper source
cement sector may affect the share price of the The Standalone financial statements of the Company These divisions offer different products and of financing, then it will always result in growth of
company. If policy change is positive, share price have been prepared on the basis of single reporting services and are managed separately because profits. Nonetheless, uncontrolled debt levels can
will increase and vice versa. segment. they require different technology and strategies. lead to credit - downgrade. On the other hand, the
Sensitivity Analysis of Change in Market reluctance or inability to borrow may be a sign that
Capitalization The Company is operating in two principal • Cement Manufacturing: The Maple Leaf Cement operating margins are simply too tight. So, an optimal
geographical areas in terms of continents and revenue Factory Limited (the “Holding Company”) is debt equity mix is always appreciated especially in
from continuing operations from external customers operating as a cement manufacturing segment expansion periods.
Share Price as of 30 Rs. 28.33 based on geographical areas are Asia 98.33% and of the Group. The principal activity of the Holding
June 2023 Africa 1.67%. Company is production and sales of cement. The management of the Company keeps a strong
watch on its leverage and consistent efforts have
Market Capitalization as Rs. 30,407,898,753
• The Standalone financial statements of the • Power Generation: Maple Leaf Power Limited been made to curtail it.
of 30.06.2023
Company have been prepared on the basis of (the “Subsidiary Company”) is operating as
Change in Share Price by Change in Market single reporting segment. an electric power generation segment of the Fixed Cost per unit: Higher production capacities
Capitalization Group. The principal activity of the Subsidiary of an entity help in bringing down the cost per unit
• Revenue from sale of cement represents 100% Company is to develop, operate and maintain of the items manufactured. Production units are
+10% Rs. 3,040,789,875
of gross sales of the Company. Sales during the electric power generation plant and engage in inversely proportion to the fixed cost per unit, higher
-10% Rs. (3,040,789,875) year 2022-23 comprises 95.8% of grey cement the business of generation, sale and supply of production means low per unit cost and vice versa.
and 4.2% of white cement. During the year, grey electricity. The Company is keen to bring its fixed cost per unit
Reasons cement segment has shown significant growth down in order to enhance its profitability by strategic
in terms of prices. The Company operates in two • Moreover, all assets of the Company as at June initiatives and continuous monitoring.
Market capitalization is affected by political instability principal geographical areas, Asia and Africa. 30, 2023 are located in Pakistan.
and economic conditions. The Company’s main sole product is cement. Variable cost per unit: Management of the Company
HOW THE INDICATORS AND PERFORMANCE is very keen about variable cost as it is the key profit
MEASURES HAVE CHANGED OVER THE indicator in an industry like cement manufacturing.
PERIOD The Company is successfully operating its 40 MW
Coal Fired Project Plant that has benefitted the
The Company has established key indicators which Company in reduction of per ton cost of power
pertain to its key performance area. Such indicators required for manufacturing of cement.
are subject to change with the Internal and external
environment associated with the organization. Local Sales Retention: Being in a hard-core
business of cement manufacturing and sale,
The Company has identified key KPI’s that are marketing activities and branding seem a very novel
critical to its operations. While identifying KPI’s, the and unique idea. Management, however, strongly
Company has analysed various indicators, their believes and has implemented marketing techniques
interpretations and accordingly the extent to which efficiently to be amongst the top retention players
they may correctly and clearly communicate the of the cement industry. The company is gradually
Company’s performance. Some important indicators improving its local sales retention viz a viz other key
are as briefly explained below: players in the sector.
Market Share: The Company is a leading brand in

Pakistan with a diverse customer base and presence
across the Pakistan. Carrying on with the legacy of
Leaf, Maple Leaf brand is widely acknowledged as
the best quality cement brand in all the local and
export markets. Presently the Company, due to
its unique and unparalleled marketing efforts and
superior quality. The Company 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.
158 159
160
HORIZONTAL ANALYSIS - UNCONSOLIDATED
SIX YEARS
2023 23 vs 22 2022 22 vs 21 2021 21 vs 20 2020 20 vs 19 2019 19 vs 18 2018 18 vs 17
Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ %
Statement of Financial Position
Total equity 44,913,114 10.74 40,559,015 8.03 37,542,541 19.86 31,320,831 2.64 30,514,586 2.02 29,911,139 26.16
Total non-current liabilities 28,579,576 12.24 25,461,804 47.63 17,247,289 (10.98) 19,375,165 (8.95) 21,278,671 26.18 16,863,465 129.60
Total current liabilities 16,215,021 0.13 16,193,391 41.43 11,449,448 (25.23) 15,313,775 8.11 14,164,518 18.49 11,953,924 53.97
Total equity and liabilities 89,707,711 9.11 82,214,210 24.12 66,239,278 0.35 66,009,771 0.08 65,957,775 12.31 58,728,528 51.30
Total non-current assets 67,468,044 9.01 61,892,221 25.50 49,315,862 (0.18) 49,402,580 (4.54) 51,750,897 12.51 45,996,847 61.93
Total current assets 22,239,667 9.44 20,321,989 20.08 16,923,416 1.90 16,607,191 16.90 14,206,878 11.59 12,731,681 22.28
Total assets 89,707,711 9.11 82,214,210 24.12 66,239,278 0.35 66,009,771 0.08 65,957,775 12.31 58,728,528 51.30
Profit or Loss Account

Sales - net 62,075,259 27.94 48,519,622 36.53 35,538,301 22.05 29,117,734 11.97 26,005,944 1.19 25,699,113 7.11
Cost of sales (45,651,503) 25.96 (36,244,156) 28.82 (28,135,419) (5.64) (29,816,947) 41.39 (21,088,864) 12.92 (18,676,562) 28.72
Gross profit 16,423,756 33.79 12,275,466 65.82 7,402,882 (1,158.74) (699,213) (114.22) 4,917,080 (29.98) 7,022,551 (25.94)
Distribution cost (2,001,499) 34.88 (1,483,876) 46.36 (1,013,852) 19.93 (845,379) (9.42) (933,244) 26.77 (736,142) (42.27)
Administrative expenses (1,380,607) 42.12 (971,453) 19.42 (813,489) 3.67 (784,706) 6.97 (733,607) 0.42 (730,551) 17.63
Other operating expenses (1,186,881) 24.65 (952,200) 81.67 (524,142) 482.39 (89,999) (80.28) (456,493) (20.25) (572,436) 6.72
Other operating income 146,646 159.09 56,601 (98.48) 3,732,132 2,727.84 131,978 206.95 42,997 (23.13) 55,935 (59.77)
Profit from operations 12,001,415 34.48 8,924,538 1.61 8,783,531 (484.01) (2,287,319) (180.63) 2,836,733 (43.71) 5,039,357 (29.90)
Finance cost (2,750,747) 58.00 (1,741,026) 16.54 (1,493,930) (49.90) (2,981,722) 154.29 (1,172,557) 82.04 (644,121) 102.33
Profit/(loss) before taxation 9,250,667 28.78 7,183,512 (1.46) 7,289,601 (238.35) (5,269,041) (416.62) 1,664,176 (62.14) 4,395,236 (36.03)
Taxation (4,758,998) 33.79 (3,557,172) 243.52 (1,035,492) (343.20) 425,776 (314.09) (198,877) (73.94) (763,035) (63.55)
Profit/(loss) after taxation 4,491,669 23.86 3,626,340 (42.02) 6,254,109 (229.13) (4,843,265) (430.53) 1,465,299 (59.66) 3,632,201 (23.97)
VERTICAL ANALYSIS - UNCONSOLIDATED

SIX YEARS
2023 2022 2021 2020 2019 2018
Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ %
Statement of Financial Position

Total equity 44,913,114 50.07 40,559,015 49.33 37,542,541 56.68 31,320,831 47.45 30,514,586 46.26 29,911,139 50.93
Total non-current liabilities 28,579,576 31.86 25,461,804 30.97 17,247,289 26.04 19,375,165 29.35 21,278,671 32.26 16,863,465 28.71
Total current liabilities 16,215,021 18.08 16,193,391 19.70 11,449,448 17.28 15,313,775 23.20 14,164,518 21.48 11,953,924 20.35
Total equity and liabilities 89,707,711 100.00 82,214,210 100.00 66,239,278 100.00 66,009,771 100.00 65,957,775 100.00 58,728,528 100.00
Total non-current assets 67,468,044 75.21 61,892,221 75.28 49,315,862 74.45 49,402,580 74.84 51,750,897 78.46 45,996,847 78.32
Total current assets 22,239,667 24.79 20,321,989 24.72 16,923,416 25.55 16,607,191 25.16 14,206,878 21.54 12,731,681 21.68
Total assets 89,707,711 100.00 82,214,210 100.00 66,239,278 100.00 66,009,771 100.00 65,957,775 100.00 58,728,528 100.00
Profit or Loss Account

Sales - net 62,075,259 100.00 48,519,622 100.00 35,538,301 100.00 29,117,734 100.00 26,005,944 100.00 25,699,113 100.00
Cost of sales (45,651,503) (73.54) (36,244,156) (74.70) (28,135,419) (79.17) (29,816,947) (102.40) (21,088,864) (81.09) (18,676,562) (72.67)
Gross profit 16,423,756 26.46 12,275,466 25.30 7,402,882 20.83 (699,213) (2.40) 4,917,080 18.91 7,022,551 27.33
Distribution cost (2,001,499) (3.22) (1,483,876) (3.06) (1,013,852) (2.85) (845,379) (2.90) (933,244) (3.59) (736,142) (2.86)
Administrative expenses (1,380,607) (2.22) (971,453) (2.00) (813,489) (2.29) (784,706) (2.69) (733,607) (2.82) (730,551) (2.84)
Other operating expenses (1,186,881) (1.91) (952,200) (1.96) (524,142) (1.47) (89,999) (0.31) (456,493) (1.76) (572,436) (2.23)
Other operating income 146,646 0.24 56,601 0.12 3,732,132 10.50 131,978 0.45 42,997 0.17 55,935 0.22
Profit from operations 12,001,415 19.33 8,924,538 18.39 8,783,531 24.72 (2,287,319) (7.86) 2,836,733 10.91 5,039,357 19.61
Finance cost (2,750,747) (4.43) (1,741,026) (3.59) (1,493,930) (4.20) (2,981,722) (10.24) (1,172,557) (4.51) (644,121) (2.51)
Profit / (loss) before taxation 9,250,667 14.90 7,183,512 14.81 7,289,601 20.51 (5,269,041) (18.10) 1,664,176 6.40 4,395,236 17.10
Taxation (4,758,998) (7.67) (3,557,172) (7.33) (1,035,492) (2.91) 425,776 1.46 (198,877) (0.76) (763,035) (2.97)
Profit / (loss) after taxation 4,491,669 7.24 3,626,340 7.47 6,254,109 17.60 (4,843,265) (16.63) 1,465,299 5.63 3,632,201 14.13
161
SUMMARY OF CASH FLOW COMMENTS ON
STATEMENT - UNCONSOLIDATED SIX YEARS ANALYSIS
SIX YEARS HORIZONTAL ANALYSIS reduction in packing material cost, efficient buying of coal
and reduction in short term borrowing resulted in increased
2023 2022 2021 2020 2019 2018 Statement of Financial Position profits. The exponentially high other operating income was
(Rupees in thousand) The Company’s equity significantly increased during the mainly due to dividend income received from MLPL.
Cash generated from operations before
past 6 years mainly due to increase in profit after tax and
working capital changes 15,897,923 12,905,198 9,013,169 1,047,196 5,335,849 7,623,505 issuance of capital in the initial years. Further, in initial years, In line with FY 2021, FY 2022 and FY 2023 also showed
accumulated profits increased due to increase in cement sizable profits due to higher sales which were mainly due
(Increase) / decrease in current assests demand in local markets as a result of Naya Pakistan Housing to increased local prices. Prices were increased to pass the
Stores, spare parts and loose tools 2,927,753 (3,114,888) (1,343,107) (1,186,848) (703,479) 245,303 Scheme, CPEC and other government infrastructure inflationary impact on input costs mainly coal and power
Stock-in-trade (1,178,984) (545,438) (370,779) (40,390) (545,508) 107,729 projects. But since last two years, the accumulated profits since their prices increased globally and further affecting
Trade debts (726,197) (596,428) 1,213,368 (393,515) (1,688,194) (474,227)
increased due to cost efficient production and better pricing. us due to Pak Rupee devaluation. Finance cost is also on
Loans and advances (276,007) (122,623) (85,357) 382,104 1,498,243 (1,468,489)
Trade and other payables 3,343,875 775,175 (838,876) 37,109 2,922,380 1,815,694 Non-current liabilities increased during the period of FY 2017 the higher side for the current financial year as compared
Other receivables 29,730 113,574 (130,579) 63 8,215 217,102 to FY 2019 as the Company entered into a phase of growth to prior years due to more borrowings and increased policy
Retirement benefits adjusted / (paid) (53,879) (43,319) (56,198) (35,724) (38,020) (40,084) and expansion and hence increased its debt leverage to rates by SBP during the two years from 7% to 22%.
Workers’ Profit Participation Fund Paid (106,080) (88,151) - (71,253) (93,768) (175,916) partially finance coal fired power project and production line
Workers’ Welfare Fund paid (64,844) (23,185) (161) - - (135,635) III of cement. This trend was discontinued in the FY 2021, VERTICAL ANALYSIS
Taxes paid (1,459,957) (586,635) (736,571) (675,051) (379,435) (2,393,707) as the Company lowered its debt component by making
Others 1,810,331 (343,173) (112,943) (1,415) (35,322) 268,656
early principal repayments. However, during the FY 2022 Statement of Financial Position
Net Cash generated from operating activities 20,143,665 8,330,107 6,551,967 (937,724) 6,280,961 5,589,931 and FY 2023, non-current liabilities increased significantly as The equity of the Company continues to improve; its
compared to FY 2021 due to investment on the installation weightage has also increased except from FY 2017 to
Capital expenditure (9,071,126) (15,790,494) (3,285,300) (855,476) (8,220,851) (19,445,846) of line IV and Waste Heat Recovery Plant and installation FY 2019 where its proportion decreased from 61.08%
Dividend received from fully owned subsidy - - 3,514,000 - - - of 2 Nos. solar power plants which have been capitalized to 46.26% respectively on account of increase in non-
Intangible asset purchased - (6,786) - - (5,219) - during the current year. During the FY 2021, the Company current liabilities resulting from drawdown of long-term
Proceeds from disposal of property, plant
successfully reduced its current liabilities by 25% mainly by finances for expansion project of cement however,
and equipment 89,125 30,583 53,115 52,047 102,173 51,965
Redemption of long term investments - - - - - -
reduction of short-term borrowings due to better operating during financial year 2020-2021 equity component has
Short term investment - net (3,234,546) (75,000) (44,500) (50,000) - (21,997) cash flows as evident from respective year profits which increased from 47.45% to 56.68% by virtue of profits
Long term investment (10,000) - - - - (350,000) has increased again during the FY 2022 and FY2023 due earned by the Company. However, equity component has
Profit on bank deposits received 52,064 22,377 13,692 29,842 18,796 28,970 to growth and expansion mainly relating to line IV project, decreased during the FY 2022 from 56.68% to 49.33%
WHRP and installation of 2 more solar power plants. due to increase in non-current liabilities from 26.04% to
Net Cash used in investing activities (12,174,483) (15,819,320) 251,007 (823,587) (8,105,101) (19,736,908) 30.97% and current liabilities increased from 17.28% to
Increase in non-current assets of the Company in FY 19.70% resulting from further financing for line IV project
Proceeds from long term loans from banking
companies - secured - net (1,720,571) 6,898,075 1,142,825 (5,007,260) 3,552,666 10,648,936 2017 to FY 2020 was mainly due to its investment in new and other expansion related projects as explained in
Long term loan from subsidiary company - 1,000,000 (2,000,000) 2,000,000 1,000,000 - production line-III of grey cement. Non-current assets above sections. In FY 2023, total equity slightly increased
Proceeds from issuance of right shares - - - 5,994,968 - 4,241,830 significantly increased again during the next years mainly from 49.33% to 50.07% and total non-current liabilities
Repayment of redeemable capital - secured - - - - - due to expansion relating to installation of line IV, installation also increased from 30.97% to 31.86% while the total
Repayment of syndicated term finance - secured - - - - - of 2 Nos. solar power plants and related WHRP. Current non-current liabilities decreased from 19.70% to 18.08%.
Payment of liabilities against assets subject to assets exhibit a consistent increasing trend in line with
finance lease - net - - - - (480,615)
higher capacity levels and sales volume. Due to nature of industry, a capital-intensive sector, ratio
Short term borrowings - net (2,174,578) 490,990 (4,121,973) 3,100,037 (1,215,654) 1,038,909
Finance cost paid (2,527,786) (1,296,781) (1,733,621) (3,011,992) (857,976) (462,171) of non-current assets to total assets remained in the
Redemption of preference shares (5) - - - Profit or Loss Account range of 74.45% to 78.46% as evident from last 6 years
Dividend paid (191) (565) (19,919) (289,361) (663,880) (1,804,561) In FY 2018, profit margins reduced due to high cost of reported figures. On account of investment in expansion
Lease rentals paid during the year (14,611) (12,425) - - - - production caused by an increase in coal rates and power project, non-current assets have increased in FY 2018
Own share purchased for cancellation (194,661) (477,778) - - - - costs. Cost of production also increased in FY 2019 mainly & 19 in rupee terms. The proportion of current asset vs
Net cash generated from/ (used in) financing
due to increase in input prices primarily due to devaluation of non-current assets significantly decreased during FY
activities (6,632,403) 6,601,516 (6,732,688) 2,786,392 1,815,156 13,182,328
Pak Rupee. This trend of higher input prices also continued 2017 to FY 2018 due to an increase in non-current assets
Net increase/ (decrease) in cash and in FY 2020 and losses were incurred as sales retention as explained above, while showing a reversed trend in
cash equivalents 1,336,779 (887,697) 70,286 1,025,081 (8,984) (964,649) declined and cost of sales increased due to increase in the FY 2020 and FY 2021 due to higher working capital
Cash and cash equivalents at beginning coal rates, power costs, devaluation of Pak rupees coupled requirements on account of the addition of grey cement
of the years (603,919) 279,802 209,516 (815,565) (806,581) 158,068 with higher financial costs due to commencement of line- Line III, similarly, in the aforementioned period non-
Exchange (Loss)/Gain on cash & cash equivalents 7,847 3,976 - - - - III operations in May-2019 which impacted the bottom line current assets share stayed between 78.46% to 74.45%
negatively. on account of increase in deprecation due to operations
Cash and cash equivalents at end of the years 740,707 (603,919) 279,802 209,516 (815,565) (806,581)
of line-III. During the current financial year, the ratio of
In sharp contrast, FY 2021 flourished in a mighty display of current assets has increased slightly, a difference that is
take-off in the financial indicators of the Company by reason very negligible.
of collective factors such as improved market conditions
which uplifted and promoted demand, thereby restoring the Profit or Loss Account
slump in sales retention from the previous year. Furthermore, The Company’s GP% showcased a declining trend in the
162 163
FY 2017 to FY 2019, mainly due to an increase in production costs specially in packing material
and power costs coupled with decrease in sales retention of local grey cement. FY 2020 was
especially hard felt as coal prices, devaluation of Pak Rupee and poor sales prices unfavourable
impacted the profitability of the Company.
In FY 2021 onwards, the Company’s GP% increased mainly due to increase in local sale prices on
account of high demand of cement in local market. Other operating income increased mainly due
to the dividend received from Maple Leaf Power Limited (wholly owned subsidiary). Finance cost
decreased mainly due to low discount rates and reduction in short term borrowings. Overall net
profit was mainly due to high sale retention and low finance cost as explained.
During the current year, GP % increased further from 25.30% to 26.46% of prior year mainly
due to increase in local sales prices even there is a dip in local dispatches. Prices were on the
higher side due to passing on the impact of high inflationary impact of prices on input costs and
Pak Rupee devaluation. NP % decreased during the year from 7.47% to 7.24% mainly due to
increased finance cost which in turn is mainly due to revised SBP policy rates from 13.75% to
22% and increased tax charge which is due to the implementation of Super Tax.
COMMENTS ON CASH FLOW STATEMENTS
Cash generated from operations has been in line with profits earned by the Company in the past
years. However, in FY 2020, the Company’s operating cash flows were negative mainly due to
tough market conditions that resulted in low sale prices. But in later years, cash generated from
operations showed significant growth mainly due to better sale retention on account of favourable
market conditions in local market.
Other than the FY 2021, where the Company didn’t invest in any new project or major investment,
the Company’s capital expenditure has been consistently high, especially in FY 2018-19, due to
investment in the grey cement line III of 7,300 tpd for capacity enhancement and in FY 2022-23
due to heavy investments in line IV (7,000 tpd), WHRP and solar power projects. The Company
has financed the above-mentioned project by obtaining finances from financial institutions and
issuing right shares along with its equity contribution.
During the FY 2021, the Company has started new projects i.e., new brownfield cement line IV,
enhancement of WHRP capacity at existing lines of cement. These capital expenditures were
managed partially with long term financing and from internally generated cash flows. In FY 2022,
the financing activates produced a net inflow because of the long term loan from the banks. The
FY 2023 witnessed a heavy net outflow from financing activities as the company utilized its cash
generation from operations to clear its outstanding loan and short-term borrowings.
164 165
ANALYSIS OF FINANCIAL RATIOS
UNCONSOLIDATED
FOR SIX YEARS COMMENTS ON
FROM JUNE 2018 TO JUNE 2023 RATIO ANALYSIS
Ratios Description 2023 2022 2021 2020 2019 2018 Profitability ratios: The profitability ratios of the Capital Structure Ratios: The Company is
2016 Company have shown a triumphant recovery during operating at optimal level of debt equity mix. Relying
Profitability Ratios:
Gross Profit ratio 26.46% 25.30% 20.83% -2.40% 18.91% 27.33% the current year due to an increase in retention mainly on internal cash generation to maximize
Net Profit to Sales 7.24% 7.47% 17.60% -16.63% 5.63% 14.13% prices and control in production expenses due to shareholders’ return. However, in last 5 years, the
EBITDA Margin to Sales 25.76% 25.85% 34.96% 3.60% 20.75% 28.81%
Operating leverage ratio 1.23 0.04 -21.95 -15.10 -36.61 -4.20 cost efficient production and the Company avoiding Company increased its debt to cater the financing
Return on Equity 10.00% 8.94% 16.66% -15.46% 4.80% 12.14% the bump in the Wapda power tariffs by following needs for expansion project of grey cement line-III
Return on Capital employed 7.52% 6.69% 13.35% -10.42% 3.24% 10.42%
Effective Tax Rate 51.44% 49.52% 14.21% 8.08% 11.95% 17.36% an ongoing strategy of shifting reliance from and line IV. This increase in ratio results is currently
Shareholder’s Funds 50.07% 49.33% 56.68% 47.45% 46.26% 50.93% national power grid to self-generation. Furthermore, due to Company obtaining more borrowings to
Return on Shareholder’s Funds 10.00% 8.94% 16.66% -15.46% 4.80% 12.14%
Total Shareholder’s return 3.58% -41.78% 80.83% 9.88% -50.95% -51.69% profitability of the Company has also improved finance the line III and Line IV projects and other
due to increase in selling price. In addition, the capital investments and as a result, debt to equity
Liquidity Ratios:
Current ratio 1.37 1.25 1.48 1.08 1.00 1.07 Company has managed to increase its Grey local ratio has worsened to 36:64 in FY 2022 but has
Quick / Acid test ratio 0.52 0.29 0.44 0.42 0.37 0.42 sales retention, thereby overall increasing net sales. improved in FY 2023 due to the early payment of
Cash to Current Liabilities 0.05 0.05 0.04 0.07 0.03 0.05
Cash flow from Operations to Sales 0.32 0.17 0.18 (0.03) 0.24 0.22
However, due to increased input cots EBITDA loan to cope up with the increasing interest rates.
Cash flow to capital expenditure 2.22 0.53 1.99 (1.10) 0.76 0.29 margins slightly reduced from 25.85% to 25.76%.
Cash flow coverage ratio 1.02 0.33 0.40 (0.04) 0.28 0.29 The Cost of Sales show a limited variance, but During the year, the Government also revised SBP
Investment / Market Ratios: overall, input prices remain high. policy rate from 13.75% to 22% which has caused
Earnings per share (EPS) the finance cost of the company to increase as
Basic 4.18 3.30 5.69 (5.30) 2.13 6.29
Diluted 4.18 3.30 5.69 (5.30) 2.13 6.29 Liquidity Ratios: From 2018 onwards decline in the compared to prior year.
Price Earnings ratio 6.77 8.28 8.25 (4.90) 11.23 8.07 liquidity is witnessed due to Brown field expansion
Price to book ratio 0.68 0.74 1.37 0.91 0.46 1.01
Market value per share of grey cement line-III. Liquidity indicators stabilized Activity/turnover ratios: The operating cycle has
Closing 28.33 27.35 46.98 25.98 23.89 50.74 during the comparative period due to no significant overall been on an upward positive trend over
High 29.36 47.51 50.90 31.90 60.78 119.60
Low 19.34 23.95 25.85 13.79 19.26 47.20 capital expenditures having been incurred and the years due to an increase in Payable days on
Break up value per share / Net assets per share management’s decision to early service the current account of better negotiated credit terms with
With revaluation surplus 41.84 36.93 34.18 28.52 51.40 50.38
Without revaluation surplus 40.10 34.69 31.37 25.22 44.85 43.20
portion of long-term debts from financial institutions. suppliers of expansion projects and creditors. No.
With revaluation surplus including investment During FY 2022, liquidity worsened a little due to of days of Inventory, however, have witnessed a
in subsidiary* 49.38 43.12 39.54 36.03 62.77 60.06 reduced profitability as compared to prior year and small variation, but has generally overall increased.
Cash Dividend per Share - - - 0.27 1.00 3.06
Dividend Pay out Ratio - - - -5.10% 47.00% 48.57% enhanced borrowings on account of expansion and A stable inventory turnover ratio over the past 6
Dividend Yield Ratio - - - 1.04% 4.19% 6.02% growth. In FY 2023, liquidity improved significantly years shows the Company’s quick ability to convert
Dividend Cover Ratio - - - (16.32) 2.47 2.00
due to the increase in contribution margins. inventory into revenue as a result of the Companies
Capital Structure Ratios: persistent improvements in the supply chain and
Financial leverage ratio 0.46 0.64 0.44 0.70 0.73 0.64
Weighted average cost of debt 15.09% 9.64% 7.85% 13.57% 9.89% 6.98% Investment / Market Ratios: The increase of the logistical network. Over the years, debtor turnover
Net Borrowing/ EBITDA 1.29 2.07 1.31 20.52 4.20 2.57 State Bank Policy rate in the year under review ratio declined due to enhancement of distributors
Av. Operating Working Capital to Sales Ratio 22.53% 26.36% 30.04% 29.33% 27.42% 23.84%
Debt to Equity ratio 32:68 36:64 28:72 33:67 37:63 31:69 and instability in economic and political system has and dealers’ network in the local market for higher
Debt to Equity ratio (Market value) 24:76 27:73 16:84 24:76 32:68 20:80 revitalized the investors’ interest and confidence in market share but has now again increased in recent
Interest Cover ratio 4.36 5.13 5.88 (0.77) 2.42 7.82
the stock market. Further, government policies and years.
Activity / Turnover Ratios: political uncertainty has made the market conditions
Inventory turnover ratio 13.90 14.96 14.32 16.97 14.38 14.97 unfavourable which is result decreases the demand
No. of Days in Inventory 26.27 24.40 25.49 21.51 25.38 24.38
Debtor turnover ratio 26.60 25.91 15.02 10.15 13.63 28.33 of products and share price of the company. The
No. of Days in Receivables 13.72 14.09 24.23 35.95 26.78 12.88 Company’s market share price remained in the
Total Assets turnover ratio 0.69 0.59 0.54 0.44 0.39 0.44
Fixed Assets turnover ratio 1.00 0.85 0.80 0.66 0.56 0.63 range of Rs.19.34 per share to Rs. 29.36 per share,
Creditor turnover ratio 10.40 9.59 7.54 8.32 7.78 13.22 closing at Rs. 28.33 per share in comparison to Rs.
No. of Days in Creditors 35.10 38.04 48.43 43.88 46.90 27.62
Operating Cycle 4.89 0.77 1.78 13.59 5.25 9.65 27.35 per share at the close of last year. Further, the
company’s EPS has improved significantly from 3.30
Employee Productivity Ratio
Production per Employee (Tons) 2,642 3,097 3,498 3,557 2,424 2,709 to 4.18 in the current year due to the cancellation of
Revenue per Employee (Rs. in millions) 38.56 31.69 24.89 19.93 17.33 18.52 bought back shares.
Staff turnover ratio 22.66% 15.59% 6.30% 5.80% 5.30% 7.00%
Non-Financial Ratios
%age of plant availability 87% 104% 98% 99% 98% 99%
Customer satisfaction index 90% 91% 75% 85% 90% 97%
Other Ratios
Spares Inventory as % of Assets Cost 11.06% 15.63% 14.70% 12.72% 10.93% 11.08%
Maintenance Cost as % of Operating Expenses 7.28% 7.76% 6.84% 6.93% 7.89% 9.66%
166 167
DUPONT COMPOSITION OF LOCAL VERSUS
ANALYSIS IMPORTED MATERIAL AND
SENSITIVITY ANALYSIS
Years Return on Equity Profit Margin Total Asset Turnover Return on Assets Equity Multiplier 2023 2022
(Profit Margin * Total (Pre-Tax Profit / (Sales / ( Avg. Assets / Rs. ‘000 % Rs. ‘000 %
Asset Turnover*
Equity Multiplier)
Sales) Avg. Assets) Avg. Equity) Local Components:
Raw materials consumed 2,904,016 10% 2,413,914 10%
E= C*D A B C= A*B D Packing materials consumed 3,376,679 12% 3,065,308 13%
Fuel 16,828,224 58% 7,020,523 30%
2023 21.65% 0.15 0.72 10.76% 2.01 Stores, spare parts and loose tools consumed 404,909 1% 988,096 4%
2022 18.40% 0.15 0.65 9.68% 1.90
Imported Components:
2021 21.17% 0.2 0.54 11.02% 1.92 Fuel 4,948,902 17% 9,303,183 40%
2020 -17.04% (0.18) 0.44 -7.99% 2.13 Stores, spare parts and loose tools consumed 672,466 2% 392,032 2%
2019 5.51% 0.06 0.42 2.67% 2.06
Total 29,135,196 100% 23,183,056 100%
2018 16.39% 0.17 0.53 9.01% 1.82
Sensitivity analysis
If US$ to Pak Rupee exchange rate fluctuates by 1% , the impact on cost of production
Following are the DuPont analysis highlights: on Assets which is dependent on the above
two factors, has gone up. would have been as follow:
1. Operational results have improved due to
better local sale retention and the profit margin 4. Investment in new machinery has increased 2023 2022
remains same as last year. the value of average asset while the profits Rs. ‘000’ Rs. ‘000’
have also increased the equity which overall Increase of 1% in exchange rate 56,214 96,952
2. Assets turnover ratio has improved from increases the Equity Multiplier. Decrease of 1% in exchange rate (56,214) (96,952)
the previous year, as net sales skyrocketed,
whereas the Company’s Total Asset base Conclusion: The management constantly monitors the international coal prices and exchange rates. The
materially remained unchanged from the management takes necessary and timely steps to mitigate such impacts.
previous year. The DuPont analysis depicts improvement in
profitability and return on assets. FREE CASH FLOWS
3. Based on the above two factors, the Return 2023 2022
Rs. ‘000’ Rs. ‘000’
Net cash generated from operating activities 20,143,665 8,330,107
Capital expenditures (9,071,126) (15,790,494)
FCF - Total 11,072,539 (7,460,387)
Free cash flow represents the cash a company can generate after required investment to maintain or
expand its asset base. It is a measurement of a company’s financial performance and health.
ECONOMIC VALUE ADDED

2022 2022
Rs. ‘000’ Rs. ‘000’
NOPAT 9,352,691 6,515,326
Less: WACC* Capital Invested (2,547,079) (1,422,660)
Economic Value Added 6,805,612 5,092,666
Economic value added (EVA) is a measure of a company’s financial performance based on

the residual wealth
168 169
KEY OPERATING AND STATEMENT OF CASH FLOWS
FINANCIAL DATA - UNCONSOLIDATED DIRECT METHOD - UNCONSOLIDATED
FOR SIX YEARS FROM JUNE 2018 TO JUNE 2023
2023 2022
Cash flows from operating activities
2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
Quantitative Data (M. Tons) Cash receipts from customers 61,349,061 47,923,194
Cement:
Production 4,253,451 4,741,944 4,994,594 5,196,304 3,638,313 3,760,120 Cash paid to suppliers and employees 41,263,463 38,822,196
Sales 4,273,444 4,759,428 5,023,444 5,201,820 3,673,278 3,763,835
Net cash generated from operations 20,085,598 9,100,998
Sales (Rs. 000)
Gross Sales ( Local + Export- Decrease / (Increase) in long term loans to employees 1,277 (2,362)
Discount) 82,836,831 66,400,649 50,875,878 47,412,675 36,678,918 35,990,524 Increase in long term deposits to suppliers (801) (298)
Less: Increase in retention money payable 1,750,198 -
Excise Duty 6,911,333 6,973,716 7,043,999 10,040,696 4,874,102 4,436,086 Retirement benefits paid (53,879) (43,319)
Sales Tax 13,494,564 10,631,729 8,060,518 8,027,602 5,656,806 5,713,760 Decrease in payable to Government Authority - (22,965)
Commission 355,676 275,582 233,060 226,643 142,066 141,565 Workers’ Profit Participation Fund paid (106,080) (88,151)
Workers’ Welfare Fund paid (64,844) (23,185)
Net Sales 62,075,259 48,519,622 35,538,301 29,117,734 26,005,944 25,699,113 Taxes paid - net of refund (1,459,957) (586,635)
Profitability (Rs. 000) Net cash generated from operating activities 20,151,512 8,334,083
Gross Profit/(Loss) 16,423,756 12,275,466 7,402,882 (699,213) 4,917,080 7,022,551
Cash flows from investing activities
Profit/(Loss) Before Tax 9,250,668 7,183,512 7,289,601 (5,269,041) 1,664,176 4,395,236 Capital expenditure (9,071,126) (15,790,494)
Provision for Income Tax (4,758,998) (3,557,172) (1,035,492) 425,776 (198,877) (763,035) Intangible assets acquired - (6,786)
Dividend received from the subsidiary company - -
Profit/(Loss) After Tax 4,491,670 3,626,340 6,254,109 (4,843,265) 1,465,299 3,632,201 Proceeds from disposal of property, plant and equipment 89,125 30,583
Long term investment - MLIL (10,000) -
Financial Position (Rs. 000) Short term investment (3,234,546) (75,000)
Tangible Fixed Assets-Net 62,354,608 56,784,840 44,215,539 44,297,941 46,640,664 40,894,010 Profit on bank deposits received 52,064 22,377
Other Non-Current Assets 5,113,436 5,107,381 5,100,323 5,104,639 5,110,233 5,102,837
Net cash (used in) / generated from investing activities (12,174,483) (15,819,320)
67,468,044 61,892,221 49,315,862 49,402,580 51,750,897 45,996,847
Cash flows from financing activities
Current Assets 22,239,667 20,321,989 16,923,416 16,607,191 14,206,878 12,731,681 Long term loans from financial institutions - secured - net (1,720,571) 6,898,075
Current Liabilities (16,215,021) (16,193,391) (11,449,448) (15,313,775) (14,164,518) (11,953,924) Proceeds from / (repayments of) long term loan
Net Working Capital 6,024,646 4,128,598 5,473,968 1,293,416 42,360 777,757 from subsidiary company - 1,000,000
Capital Employed 73,492,690 66,020,819 54,789,830 50,695,996 51,793,257 46,774,604 Short term borrowings - net (2,174,578) 490,990
Less: Non Current Liabilities (28,579,576) (25,461,804) (17,247,289) (19,375,165) (21,278,671) (16,863,465) Finance cost paid (2,527,786) (1,296,781)
Lease rentals paid during the year (14,611) (12,425)
Shareholders’ Equity 44,913,114 40,559,015 37,542,541 31,320,831 30,514,586 29,911,139 Own share purchased for cancellation (194,661) (477,778)
Redemption of preference shares (5) -
Represented By: Dividend paid (191) (565)
Share Capital 10,733,462 10,983,462 10,983,462 10,983,462 5,937,007 5,937,007
Reserves & Un-appropriated Net cash generated from / (used in) financing activities (6,632,403) 6,601,516
Profit 32,310,668 27,115,586 23,469,104 16,722,039 20,693,099 19,709,589 Net (decrease) / increase in cash and cash equivalents 1,344,626 (883,721)
Surplus on Revaluation of PPE 1,868,984 2,459,967 3,089,975 3,615,330 3,884,480 4,264,543
Cash and cash equivalents at beginning of the year (603,919) 279,802
44,913,114 40,559,015 37,542,541 31,320,831 30,514,586 29,911,139
Cash and cash equivalents at end of the year 740,707 (603,919)
170 171
RESULTS REPORTED IN INTERIM FINANCIAL EXPLANATION OF NEGATIVE CHANGE
STATEMENTS AND FINAL ACCOUNTS IN THE PERFORMANCE AGAINST
Interim Results Annual Results PRIOR YEARS
3 Months Period 6 Months Period 9 Months Period Year Ended
Ended 30-09-2022 Ended 31-12-2022 Ended 31-03-2023 30-06-2023 Annual Results
Rupees ‘000 % Rupees ‘000 % Rupees ‘000 % Rupees ‘000 % Year Ended 30-06-2023 Year Ended 30-06-2022 YOY Variance
Net turnover 12,827,344 30,051,369 47,089,636 62,075,259
Gross Profit 3,569,051 27.82% 8,641,344 28.76% 12,878,753 27.35% 16,423,756 26.46% Rs. ‘000 % Rs. ‘000 % Rs. ‘000 %
Operating Profit 2,417,084 18.84% 6,507,237 21.65% 9,271,632 19.69% 12,001,415 19.33% Net Turnover 62,075,259 48,519,622 13,555,637 27.94%
Net Profit Before Tax 1,774,168 13.83% 5,257,325 17.49% 7,523,924 15.98% 9,250,668 14.90%
Net Profit After Tax 1,210,124 9.43% 3,555,770 11.83% 5,056,440 10.74% 4,491,670 7.24% Gross Profit 16,423,756 26.46% 12,275,466 25.30% 4,148,290 30.60%
Debt Equity Ratio 21,941,215 35:65 21,654,093 33:67 19,585,923 30:70 18,618,431 29:71 Operationg Profit 12,001,415 19.33% 8,924,538 18.39% 3,076,877 22.70%
63,536,507 65,601,270 65,065,916 63,531,545
Net Profit Before Tax 9,250,668 14.90% 7,183,512 14.81% 2,067,156 15.25%
Current Ratio 23,059,814 1.24 21,812,888 1.39 20,834,489 1.26 22,239,667 1.37
18,560,417 15,660,593 16,499,712 16,215,021 Net Profit After Tax 4,491,670 7.24% 3,626,340 7.47% 865,330 6.38%
• Overall turnover increased by 27.94%, it includes negative volumetric growth mainly due to low
Analysis of Variation in Results Reported in Interim demand in market, however, sale retention was increased on account of increasing sale prices.
Financial Statements with the Final Accounts Net Profit After Tax was 11.83% as compared
to 7.24%, due to less tax on account of reasons • Gross Profit increased by 30.60% from preceding year due to increase in
3 Months Ended September 30, 2022 explained above. sales retention. Cost of sales were higher because of high input costs,
Pak Rupee devaluation and higher fuel rates. However, these inflationary
Gross Profit (GP) Ratio for the 1st Quarter was 27.82% Debt Equity Ratio was 33:67 in 6-month period as impacts were partially mitigated by production efficiencies and fixed
as compared to annual GP of 26.46%, mainly due to compared to 29:71 in annual, mainly due to payment cost reduction.
the increase in CGS on coal and electricity. of loan to reduce the finance cost.
• Net profit before tax increased by 15.25%, however, finance cost for the
year was higher on account of increase in SBP discount rates.
Operating Profit was 18.84% as compared to Current ratio was 1.39 as compared to annual of
19.33%, mainly due to high other charges in 1st 1.37, due to an increase in inventory because of • Net profit after tax increased by 6.38% due to higher margins in
Quarter. higher coal and pet coke rates in the international gross profit and operating profit.
market and reduction in short term borrowings in
Net Profit Before Tax was 13.83% as compared to annual financials.
annual 14.90%, mainly due to less OP and other
income in 1st Quarter. 9 Months Ended March 31, 2023
Net Profit After Tax was 9.43% as compared to Gross Profit (GP) Ratio was 27.35% as compared to
7.24%, due to lower tax in the 1st Quarter. annual GP of 26.46% because of the highest CGS in
the last quarter of the year.
Debt Equity Ratio was 35:65 in first quarter as
compared to 29:71 in annual, mainly due to payments Operating Profit was 19.69% as compared to
of loan in the financial year. 19.33% in annual, which is very close to the annual
percentage.
Current ratio was 1.24 as compared to annual of
1.37, due to a decrease in current liabilities after Net Profit Before Tax was 15.98% as compared to
paying short term loans. annual 14.90%, due to high finance cost even after
the payment of loans.
6 Months Ended December 31, 2022
Net Profit After Tax was 10.74% as compared to
Gross Profit (GP) Ratio was 28.76% as compared to 7.24% in annual, due to higher high taxation in the
annual GP of 26.46%, this was the best performing last quarter.
quarter due to sale retention.
Debt Equity Ratio was 30:70 in the 9 months’ period,
Operating Profit was 21.65% as compared to very close to 29:71 reported in annual results.
19.33%, mainly due to high GP in half year results.
Net Profit Before Tax was 17.49% as compared to Current ratio was 1.26 as compared to annual of
annual 14.90%. However, it was better than the 1st 1.37, due to decrease in short term loans.
quarter due to increase in local sale retention.
172 173
STATEMENT OF VALUE ADDED
AND HOW DISTRIBUTED
Statement of Charity 2023 2022
2023 2022 Rs. (000) Rs. (000)

Rs. (000) % age Rs. (000) % age Maple CSR Initiative as per DC Office requirement 3,476 -
Wealth Generated Daudkhel Police Station 248 -
Sunshine Trust 5,000 -
Sales net of commission 82,481,154 99.82% 66,125,067 99.91% Earthquake in Turkia & Syria 1,410 -
Other Operating Income 146,646 0.18% 56,601 0.09% MAYO Hospital (Baby Incubator) - 1,319
Dialysis center in AGL hospital - 1,000
82,627,800 100.00% 66,181,668 100.00% Daud Khel Water Supply Project 365 726
Distribution of Wealth Beaconhouse National University (Scholarship) 782 1,358
Cost of Sales (excluding employees’ remuneration) 44,184,828 53.47% 34,969,996 52.84% Akhuwat Islamic Mirco Finance 15,000 -
Marketing, Selling, Administration Expenses & Financial assistance for the deceased worker - 600
other expenses 3,399,902 4.11% 2,626,527 3.97% Shafaullah 270 120
To Employees as Remuneration 2,593,405 3.14% 2,048,557 3.10% Local schools at Daud khel 100 1,482
To Government as Taxes 25,164,895 30.46% 21,162,617 31.98% Kinnaird College Lahore 112 -
To Providers of Capital as Dividend - 0.00% - 0.00% Aga Khan Planning , Building Service 15,000 -
To Providers of Finance as Financial Charges 2,750,747 3.33% 1,741,026 2.63% Miscellance Donations in the form of cement 591 -
To Society / Donations 42,355 0.05% 6,605 0.01%
Retained within the Business 4,491,670 5.44% 3,626,340 5.48% 42,355 6,605
82,627,801 100.00% 66,181,668 100.00%
174 175
176 177
DEFINITIONS AND
GLOSSARY OF TERMS
Gross Profit Ratio Profit Margin
The relationship of the gross profit made for a Determined by dividing net income by net sales during
specified period and the sales or turnover achieved a time period and is expressed as a percentage.
during that period. Net profit margin is a measure of efficiency and the
higher the margin, the better. Trends in margin can be
Net Profit Ratio attributed to rising/falling production costs or rising/
falling price of the goods sold.
Net profit ratio is the ratio of net profit (after taxes) to
net sales. Return on Assets (ROA)
Operating Profit Ratio The amount of profits earned (before interest and
taxes), expressed as a percentage of total assets. This
The operating profit margin ratio indicates how much is a widely followed measure of profitability, thus the
profit a company makes after paying for variable higher the number the better. As long as a company’s
costs of production. ROA exceeds its interest rate on borrowing, it’s said
to have positive financial leverage.
Current Asset Ratio
Return on Equity (ROE)
The key indicator of whether you can pay your
creditors on time. The relationship between current A percentage that indicates how well common
assets like cash, book debts, stock and work in stockholders’ invested money is being used. The
progress and current liabilities like overdraft, trade percentage is the result of dividing net earnings by
and expense creditors and other current debt. common stockholders’ equity. The ROE is used for
measuring growth and profitability. You can compare
Current Ratio a company’s ROE to the ROE of its industry to
determine how a company is doing compared to its
A company’s current assets divided by its current competition.
liabilities. This ratio gives you a sense of a company’s
ability to meet short-term liabilities, and is a measure Return on Investment (ROI)
of financial strength in the short term. A ratio of 1
implies adequate current assets to cover current Also known as return on invested capital (ROIC). ROI
liabilities: the higher above 1, the better. is a measure of how well management has used the
company’s resources. ROI is calculated by dividing
Debt-Equity Ratio earnings by total assets. It is a broader measure than
return on equity (ROE) because assets include debt
The ratio of a company’s liabilities to its equity. The as well as equity. It is useful to compare a company’s
higher the level of debt, the more important it is for a ROI with others in the same industry.
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 company’s profit allocated to each

outstanding share of common stock. Earnings per
share serve as an indicator of a company’s profitability.
178 179
PATTERN OF
SHAREHOLDING
2.2 No. of Shareholdings Total
CUIN (Incorporation Number) 0001107 Shareholders From To shares held
1.1 Name of the Company MAPLE LEAF CEMENT FACTORY LIMITED 11 195,001 200,000 2,194,031
4 200,001 205,000 809,544
2.1 Pattern of holding of the shares 30-06-2023 3 205,001 210,000 628,124
held by the shareholders as at
8 210,001 215,000 1,699,314
3 215,001 220,000 656,299
2.2 No. of Shareholdings Total 1 220,001 225,000 223,100
Shareholders From To shares held 5 225,001 230,000 1,143,181
4 230,001 235,000 928,567
2756 1 100 114,174 2 235,001 240,000 476,000
3296 101 500 1,068,525 2 240,001 245,000 483,110
2151 501 1,000 1,830,206 10 245,001 250,000 2,495,505
3600 1,001 5,000 9,314,899 1 250,001 255,000 250,900
970 5,001 10,000 7,567,043 2 265,001 270,000 536,749
388 10,001 15,000 4,930,850 1 275,001 280,000 280,000
248 15,001 20,000 4,526,228 1 280,001 285,000 282,000
195 20,001 25,000 4,549,538 1 285,001 290,000 289,062
111 25,001 30,000 3,161,794 2 290,001 295,000 582,929
70 30,001 35,000 2,300,924 6 295,001 300,000 1,800,000
60 35,001 40,000 2,290,556 1 300,001 305,000 305,000
44 40,001 45,000 1,898,887 3 305,001 310,000 924,143
77 45,001 50,000 3,764,974 2 310,001 315,000 627,600
38 50,001 55,000 2,010,927 6 315,001 320,000 1,917,358
34 55,001 60,000 1,982,411 4 320,001 325,000 1,288,556
24 60,001 65,000 1,512,109 2 325,001 330,000 656,000
18 65,001 70,000 1,227,990 1 340,001 345,000 344,578
20 70,001 75,000 1,466,556 1 345,001 350,000 350,000
20 75,001 80,000 1,560,873 2 350,001 355,000 705,394
8 80,001 85,000 657,709 1 355,001 360,000 355,409
11 85,001 90,000 971,433 2 360,001 365,000 724,084
14 90,001 95,000 1,302,669 1 365,001 370,000 369,999
42 95,001 100,000 4,190,251 2 370,001 375,000 747,000
11 100,001 105,000 1,139,297 1 385,001 390,000 386,399
16 105,001 110,000 1,740,184 1 390,001 395,000 393,000
9 110,001 115,000 1,016,201 9 395,001 400,000 3,594,945
8 115,001 120,000 933,448 1 405,001 410,000 406,000
13 120,001 125,000 1,610,711 1 415,001 420,000 417,700
8 125,001 130,000 1,021,414 1 420,001 425,000 424,574
3 130,001 135,000 398,158 1 435,001 440,000 438,124
5 135,001 140,000 692,305 2 445,001 450,000 900,000
3 140,001 145,000 430,426 1 460,001 465,000 464,104
16 145,001 150,000 2,397,152 2 470,001 475,000 949,000
4 150,001 155,000 609,610 3 480,001 485,000 1,446,500
5 155,001 160,000 789,800 3 495,001 500,000 1,500,000
5 160,001 165,000 820,385 1 515,001 520,000 516,622
4 165,001 170,000 677,500 3 520,001 525,000 1,566,442
6 170,001 175,000 1,040,865 4 525,001 530,000 2,108,756
2 175,001 180,000 357,419 1 530,001 535,000 532,135
2 180,001 185,000 364,501 1 535,001 540,000 539,000
3 185,001 190,000 562,849 1 550,001 555,000 554,999
2 190,001 195,000 389,999 1 555,001 560,000 555,494
180 181
2.2 No. of Shareholdings Total 2.2 No. of Shareholdings Total
Shareholders From To shares held Shareholders From To shares held
1 560,001 565,000 560,781 1 1,865,001 1,870,000 1,866,249
1 575,001 580,000 579,773 1 1,895,001 1,900,000 1,900,000
1 585,001 590,000 589,500 1 1,925,001 1,930,000 1,928,257
4 595,001 600,000 2,398,480 1 1,945,001 1,950,000 1,947,760
1 600,001 605,000 605,000 1 1,995,001 2,000,000 2,000,000
1 610,001 615,000 610,987 1 2,245,001 2,250,000 2,250,000
1 635,001 640,000 637,500 2 2,300,001 2,305,000 4,604,817
2 645,001 650,000 1,292,927 2 2,500,001 2,505,000 5,002,763
2 655,001 660,000 1,319,977 1 2,680,001 2,685,000 2,682,264
2 670,001 675,000 1,349,374 1 2,745,001 2,750,000 2,750,000
1 675,001 680,000 680,000 1 2,795,001 2,800,000 2,800,000
1 685,001 690,000 687,506 1 2,850,001 2,855,000 2,852,950
1 690,001 695,000 690,173 1 3,040,001 3,045,000 3,040,706
1 705,001 710,000 705,349 1 3,050,001 3,055,000 3,052,000
1 715,001 720,000 718,467 1 3,140,001 3,145,000 3,142,000
2 720,001 725,000 1,446,012 1 4,065,001 4,070,000 4,068,744
1 735,001 740,000 736,249 1 4,300,001 4,305,000 4,300,030
2 740,001 745,000 1,485,405 1 4,325,001 4,330,000 4,326,389
1 770,001 775,000 775,000 1 4,610,001 4,615,000 4,614,073
1 795,001 800,000 795,296 1 5,245,001 5,250,000 5,250,000
1 800,001 805,000 805,000 1 5,255,001 5,260,000 5,258,415
1 850,001 855,000 854,999 1 5,295,001 5,300,000 5,300,000
1 855,001 860,000 857,474 1 5,495,001 5,500,000 5,500,000
1 865,001 870,000 868,341 1 5,645,001 5,650,000 5,645,304
1 880,001 885,000 883,000 1 6,095,001 6,100,000 6,095,178
1 895,001 900,000 900,000 1 6,115,001 6,120,000 6,117,302
1 945,001 950,000 949,749 1 7,155,001 7,160,000 7,160,000
1 970,001 975,000 971,079 1 7,365,001 7,370,000 7,366,680
1 995,001 1,000,000 1,000,000 1 7,495,001 7,500,000 7,500,000
1 1,035,001 1,040,000 1,035,984 1 7,805,001 7,810,000 7,807,687
1 1,045,001 1,050,000 1,050,000 1 8,125,001 8,130,000 8,129,277
1 1,060,001 1,065,000 1,062,521 1 9,035,001 9,040,000 9,038,311
1 1,065,001 1,070,000 1,068,705 1 9,420,001 9,425,000 9,423,422
2 1,105,001 1,110,000 2,215,259 1 10,140,001 10,145,000 10,144,633
1 1,110,001 1,115,000 1,115,000 1 11,090,001 11,095,000 11,094,525
1 1,115,001 1,120,000 1,117,000 1 11,755,001 11,760,000 11,755,980
2 1,145,001 1,150,000 2,297,460 1 12,025,001 12,030,000 12,026,270
1 1,195,001 1,200,000 1,197,561 1 15,775,001 15,780,000 15,777,814
1 1,255,001 1,260,000 1,260,000 1 16,235,001 16,240,000 16,235,657
1 1,305,001 1,310,000 1,306,070 1 26,710,001 26,715,000 26,712,912
1 1,345,001 1,350,000 1,348,702 1 29,085,001 29,090,000 29,087,000
1 1,370,001 1,375,000 1,375,000 1 606,495,001 606,500,000 606,497,944
1 1,390,001 1,395,000 1,394,437
1 1,465,001 1,470,000 1,469,889 14,556 1,073,346,232
1 1,505,001 1,510,000 1,505,791
1 1,635,001 1,640,000 1,636,949
1 1,655,001 1,660,000 1,660,000 Note.The Slabs not applicable above have not been shown.
1 1,670,001 1,675,000 1,670,542
1 1,790,001 1,795,000 1,791,571
182 183
2.3 Categories of Shares
Shareholders Held Percentage 2.3 Categories of Shares
Shareholders Held Percentage
2.3.9 Others
2.3.1 Directors, CEO and their spouses & minor children
Mr. Tariq Sayeed Saigol - Chairman 32,428 0.0030
Mr. Sayeed Tariq Saigol - Chief Executive 10,729 0.0010 ARTAL RESTAURANT INT LTD. EMP. P.F 500
Mr. Taufique Sayeed Saigol 15,934 0.0015 TRUSTEE ARTAL RESTAURANTS INTS EMP. P.F 1,000
Mr. Waleed Tariq Saigol 11,305 0.0011 ALI GOHAR & COMPANY (PRIVATE) LIMITED STAFF PROVIDENT FUND 48,000
Mr. Danial Taufique Saigol 5,202 0.0005 Trustees of Karachi Sheraton Hotel Employees Provident Fund 1,640
Ms. Jahanara Saigol 2,500 0.0002 Chevron Pakistan Lubricants (Pvt.) Ltd. EPF 130,000
Mr. Shafiq Ahmed Khan 15,608 0.0015 THE CRESCENT TEXTILE MILLS LTD EMPLOYEES PROVIDENT FUND 25
Mr. Zulfikar Monnoo 3,000 0.0003 TRUSTEE PAKISTAN PETROLEUM SENOIR PROVIDENT FUND 438,124
Mrs. Shehla Tariq Saigol - Spouse of Mr. Tariq Sayeed Saigol 179,919 0.0168 TRUSTEE PAKISTAN PETROLEUM NON-EXECUTIVE STAFF PENSION FUND 520,400
TRUSTEE PAKISTAN PETROLEUM NON-EXECUTIVE STAFF GRATUITY FUND 223,100
276,625 0.0259
TRUSTEE PAKISTAN PETROLEUM JUNIOR PROVIDENT FUND 250,900
2.3.2 Associated Companies, undertakings
and related parties TRUSTEE PAKISTAN PETROLEUM EXECUTIVE STAFF PENSION FUND 1,348,702
Kohinoor Textile Mills Limited 606,497,944 56.5053 TRUSTEE PAKISTAN PETROLEUM EXECUTIVE STAFF GRATUITY FUND 167,500
Maple Leaf Capital Limited 12,026,270 1.1204 TRUSTEES PAKISTAN PETROLEUM EXECUTIVE STAFF GRATUITY FUND 140,000
TRUSTEE PAKISTAN PETROLEUM NON EXECUTIVE STAFF GRATUITY FUND 165,000
618,524,214 57.6257 TRUSTEE PAKISTAN PETROLEUM NON EXECUTIVE STAFF PENSION FUND 450,000
2.3.3 NIT and IDBP TRUSTEE PAKISTAN PETROLEUM JUNIOR PROVIDENT FUND 195,000
National Bank of Pakistan, Trustee Deptt. 13,097 0.0012 TRUSTEE PAKISTAN PETROLEUM SENIOR PROVIDENT FUND 372,000
Industrial Development Bank of Pakistan (IDBP) 5,800 0.0005 TRUSTEE PAKISTAN PETROLEUM EXECUTIVE STAFF PENSION FUND 1,115,000
PAKISTAN PETROLEUM EXECUTIVE STAFF PENSION FUND (DC SHARIAH) 485,000
18,897 0.0017
TRUSTEE PAK. PETROLEUM EXEC. STAFF PEN. FUND DC CONVENTIONAL 95,000
2.3.4 Banks, Development Financial Institutions,
Non-banking Financial Institutions 43,013,805 4.0074 PAKISTAN PETROLEUM EXECUTIVE STAFF PENSION FUND-DC SHARIAH 305,700
TRUSTEE PAK. PETROLEUM EXEC. STAFF PEN. FUND DC CONVENTIONAL 108,100
2.3.5 Insurance Companies 28,391,073 2.6451 HRSG OUTSOURCING (PVT) LIMITED EMPLOYEES GRATUITY FUND 70,000
BYCO PETROLEUM PAKISTAN LIMITED EMPLOYEES PROVIDENT FUND 21,699
2.3.6 Modarabas and Mutual Funds 80,294,058 7.4807 ENGRO CORPORATION LIMITED PROVIDENT FUND 247,505
HILAL GROUP EMPLOYEES PROVIDENT FUND 18,100
2.3.7 Shareholders holding 10% ENGRO CORP LTD MPT EMPLOYEES DEF CONTR PENSION FUND 14,101
Refer to 2.3.2 above - - ENGRO CORP LTD MPT EMPLOYEES DEF CONT GRATUITY FUND 102,392
WELLCOME PAKISTAN LIMITED PROVIDENT FUND 90,599
2.3.8 General Public
Bristol-Myers Squibb Pak (Pvt) Ltd Emp Prov Fund 7,474
a. Local 236,923,831 22.0734 ENGRO FOODS LIMITED EMPLOYEES GRATUITY FUND 27,000
b. Foreign 54,339,130 5.0626 PAKISTAN TELECOMMUNICATION EMPLOYEES TRUST 214,500
ENGRO FERTILIZERS LIMITED NON-MPT EMPLOYEES GRATUITY FUND 8,599
THE CRESCENT TEXTILE MILLS LTD EMPLOYEES PROVIDENT FUND 8,500
AGRIAUTO INDUSTRIES LIMITED EMPLOYEES PROVIDENT FUND 3,725
ICI PAKISTAN MANAGEMENT STAF PROVIDENT FUND 29,900
KHAADI (SMC-PRIVATE) LIMITED EMPLOYEES PROVIDENT FUND 15,500
TRUSTEE-THE KOT ADDU POWER CO. LTD. EMPLOYEES PENSION FUND 32,500
CDC - TRUSTEE NAFA ISLAMIC PENSION FUND EQUITY ACCOUNT 13,699
ROCHE PAKISTAN LIMITED MANAGEMENT STAFF PENSION FUND 84,010
ROCHE PAKISTAN LIMITED EMPLOYEES PROVIDENT FUND 56,449
HAMID ADAMJEE TRUST 12,645
CDC-TRUSTEE ALHAMRA ISLAMIC PENSION FUND - EQUITY SUB FUND 900,000
CDC - TRUSTEE PAKISTAN PENSION FUND - EQUITY SUB FUND 1,306,070
CDC - TRUSTEE AGIPF EQUITY SUB-FUND 38,924
CDC - TRUSTEE AGPF EQUITY SUB-FUND 24,645
184 185
FINANCIAL STATEMENTS
2.3 Categories of
Shareholders
Shares
Held Percentage
for the Year Ended June 30, 2023
2.3.9 Others
HOMMIE AND JAMSHED NUSSERWANJEE CHARITABLE TRUST 39,420

SUI SOUTHERN GAS EXECUTIVE STAFF PROVIDENT FUND 26,446
CDC - TRUSTEE AL HABIB PENSION FUND-EQUITY SUB FUND 53,862
CDC - TRUSTEE AL HABIB ISLAMIC PENSION FUND-EQUITY SUB FUND 53,000
ONTEX PAKISTAN (PRIVATE) LIMITED EMPLOYEES GRATUITY FUND 44,041
GHANI GLASS LIMITED EMPLOYEES PROVIDENT FUND 149,000
NISHAT CHUNIAN LIMITED EMPLOYEES PROVIDENT FUND 36,462
KOT ADDU POWER COMPANY LIMITED EMPLOYEES PROVIDENT FUND 46,546
ONTEX PAKISTAN (PRIVATE) LIMITED EMPLOYEES PROVIDENT FUND 19,503
ROCHE PAKISTAN LIMITED MANAGEMENT STAFF GRATUITY FUND 79,233
SEAGOLD (PRIVATE) LIMITED EMPLOYEES PROVIDENT FUND 18,400
PAKISTAN HERALD PUBLICATIONS (PVT) LTD. STAFF PENSION FUND 6,000
TRUSTEES OF PHILIP MORRIS (PAKISTAN) LIMITED EMPL G.F TRUST 131,000
TRUSTEES OF PHILIP MORRIS (PAKISTAN) LIMITED E.C.P.F TRUST 158,000
TRUSTEES HOMMIE&JAMSHED NUSSERWANJEE C.T 121,062
TRUSTEES S.M.SOHAIL TRUST 36,999
TRUSTEES OF UBL FUND MNGRS LTD AND ASSOCIATED COYS E.G.FUND 6,400
TRUSTEES OF UBL FUND MNGRS LTD AND ASSOCIATED COYS E.P.FUND 1,000
TRUSTEES OF GHANDHARA TYRE & RUBBER CO. LTD LOCAL STAFF P.F. 61,500
TRUSTEES OF GHANDHARA TYRE & RUBBER CO LTD. EMPLOYEES G.F 46,600
TRUSTEES OF CRESENT STEEL & ALLIED PRODUCTS LTD-PENSION FUND 7,137
TRUSTEE NATIONAL BANK OF PAKISTAN EMP BENEVOLENT FUND TRUST 7,488
TRUSTEES D.G.KHAN CEMENT CO.LTD.EMP. P.F 139,568
MANAGING COMMITTEE GHAZALI EDUCATION TRUST 440
TRUSTEES NESTLE PAKISTAN LIMITED EMPLOYEES PENSION FUND 45,000
TRUSTEES NESTLE PAKISTAN LTD EMPLOYEES PROVIDENT FUND 162,362
TRUSTEES NESTLE PAKISTAN LTD EMPLOYEES GRATUITY FUND 30,000
TRUSTEE-ANPL MAN STAFF DEFINED CONTRIBUTIO SUPERANNUATION FD 9,000
TRUSTEE-ANPL MANAGEMENT STAFF PENSION FUND 11,200
TRUSTEE-ANPL MANAGEMENT STAFF GRATUITY FUND 12,100
TRUSTEE-ANPL MANAGEMENT STAFF PROVIDENT FUND 10,000
TRUSTEE LEVER BROTHERS EMPLOYEES 5,000
TRUSTEE ALOO & MINOCHER DINSHAW CHARITABLE TRUST 5,000
TRUSTEE CHERAT CEMENT CO. LTD EMPLOYEES PROVIDENT FUND 30
TRUSTEE CHERAT CEMENT COMPANY LTD STAFF GRATUITY FUND 4,374
HAMID ADAMJEE TRUST 26,200
TRUSTEE-FIRST DAWOOD INV. BANK LTD. & OTHER EMPOLYEES P.FUND 200
SSGC LPG (PVT.) LTD.-EMPLOYEES GRATUITY FUND 6,000
TRUSTEE KARACHI PARSI ANJUMAN TRUST FUND 7,399
WAH NOBEL (PRIVATE) LIMITED MANAGEMENT STAFF PENSION FUND 20,000
TRUSTEE-AZAN WELFARE TRUST 12,400
11,564,599 1.0775
Grand Total:- 1,073,346,232 100.0000
186 187
Following are the Key audit matters:
INDEPENDENT AUDITOR’S REPORT S.No. Key audit matter(s) How the matter was addressed in our audit
1 Capital expenditure Our audit procedures included the following:
To the members of Maple Leaf Cement Factory Limited • Assessed, on a sample basis, costs
(Refer to note 20 to the unconsolidated capitalised during the year by comparing the
financial statements) costs capitalised with the relevant underlying
Report on the Audit of the Unconsolidated Financial Statements documentation, which included purchase
agreements and invoices.
During the current year, the Company
Opinion has incurred a significant amount of • Evaluated management’s estimation of
expenditure that has been capitalised. economic useful lives and residual values by
considering our knowledge of the business
We have audited the annexed unconsolidated financial statements of Maple Leaf Cement Factory Limited and practices adopted in the local industry.
We consider the above as a key audit
(the Company), which comprise the unconsolidated statement of financial position as at June 30, 2023, matter being significant transaction and • Checked the date of transfer of capital work-
and the unconsolidated statement of profit or loss, the unconsolidated statement of comprehensive in- progress to operating fixed assets by
event for the Company during the year. examining the completion certificates, on a
income, the unconsolidated statement of changes in equity, the unconsolidated statement of cash flows sample basis.
for the year then ended, and notes to the unconsolidated financial statements, including a summary of • Assessed whether the disclosures are made
significant accounting policies and other explanatory information, and we state that we have obtained all in accordance with the financial reporting
framework.
the information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of the audit. 2 Contingent taxation liabilities Our audit procedures included the following:
In our opinion and to the best of our information and according to the explanations given to us, (Refer to note 19.1 and 33 to the • Obtained and examined details of the pending
tax matters and discussed the same with the
the unconsolidated statement of financial position, unconsolidated statement of profit or loss, the unconsolidated financial statements) Company’s management.
unconsolidated statement of comprehensive income, the unconsolidated statement of changes in equity
The Company has contingent liabilities in • Circularized confirmations to the Company’s
and the unconsolidated statement of cash flows together with the notes forming part thereof conform external legal / tax advisors for their views on
respect of various income and sales tax
with the accounting and reporting standards as applicable in Pakistan and give the information required matters, which are pending adjudication open tax assessments and matters.
by the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair before the taxation authorities and the • Examined correspondence of the Company with
view of the state of the Company’s affairs as at June 30, 2023 and of the profit and other comprehensive Courts of law. the relevant authorities including judgments or
income, the changes in equity and its cash flows for the year then ended. orders passed by the competent authorities in
Contingencies require management to relation to the issues involved or matters which
make judgments and estimates in relation have similarities with the issues involved.
Basis for Opinion
to the interpretation of laws, statutory • Involved in-house tax specialists to assess
rules, regulations and the probability of management’s conclusion on contingent tax
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in outcome and financial impact, if any, on the matters and to evaluate the consistency of such
Pakistan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities Company for disclosure and recognition conclusions with the views of the management
and measurement of any provision that may and external legal / tax advisors engaged by the
for the Audit of the Unconsolidated Financial Statements section of our report. We are independent of the Company.
Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics be required against such contingencies.
for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) • Assessed the adequacy and appropriateness of
Due to significance of amounts involved, disclosures made in respect of such income and
and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the inherent uncertainties with respect to the sales tax matters.
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. outcome of matters and use of significant
management judgments and estimates to
Key Audit Matters assess the same including related financial
impacts, we considered contingent
liabilities relating to income and sales tax,
Key audit matters are those matters that, in our professional judgment, were of most significance in our
a key audit matter.
audit of the unconsolidated financial statements of the current period. These matters were addressed in
the context of our audit of the unconsolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. Information Other than the Unconsolidated Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information comprises the information
A. F. FERGUSON & Co., Chartered Accountants, A Member Firm of the PwC network included in the directors’ report, but does not include the unconsolidated and consolidated financial
Tel: +92 (42) 3519 9343-50 / Fax: +92 (42) 3519 9351 www.pwc.com/pk
188 189
statements and our auditor’s reports thereon.
• Evaluate the overall presentation, structure and content of the unconsolidated financial statements,
Our opinion on the unconsolidated financial statements does not cover the other information and we do including the disclosures, and whether the unconsolidated financial statements represent the
not express any form of assurance conclusion thereon. underlying transactions and events in a manner that achieves fair presentation.
In connection with our audit of the unconsolidated financial statements, our responsibility is to read the We communicate with the Board of Directors regarding, among other matters, the planned scope and
other information and, in doing so, consider whether the other information is materially inconsistent with timing of the audit and significant audit findings, including any significant deficiencies in internal control
the unconsolidated financial statements or our knowledge obtained in the audit or otherwise appears to that we identify during our audit.
be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in We also provide the Board of Directors with a statement that we have complied with relevant ethical
this regard. requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Responsibilities of Management and Board of Directors for the Unconsolidated Financial Statements
From the matters communicated with the Board of Directors, we determine those matters that were of
Management is responsible for the preparation and fair presentation of the unconsolidated financial most significance in the audit of the unconsolidated financial statements of the current period and are
statements in accordance with the accounting and reporting standards as applicable in Pakistan and therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
the requirements of Companies Act, 2017 (XIX of 2017) and for such internal control as management precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
determines is necessary to enable the preparation of unconsolidated financial statements that are free that a matter should not be communicated in our report because the adverse consequences of doing so
from material misstatement, whether due to fraud or error. would reasonably be expected to outweigh the public interest benefits of such communication.
In preparing the unconsolidated financial statements, management is responsible for assessing the Report on Other Legal and Regulatory Requirements
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate Based on our audit, we further report that in our opinion:
the Company or to cease operations, or has no realistic alternative but to do so.
a) proper books of account have been kept by the Company as required by the Companies Act, 2017
Board of Directors are responsible for overseeing the Company’s financial reporting process. (XIX of 2017);
Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements b) the unconsolidated statement of financial position, the unconsolidated statement of profit or loss,
the unconsolidated statement of comprehensive income, the unconsolidated statement of changes
Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements in equity and the unconsolidated statement of cash flows together with the notes thereon have been
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee books of account and returns;
that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, c) investments made, expenditure incurred and guarantees extended during the year were for the
individually or in the aggregate, they could reasonably be expected to influence the economic decisions purpose of the Company’s business; and
of users taken on the basis of these unconsolidated financial statements.
d) no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
Other Matter
• Identify and assess the risks of material misstatement of the unconsolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and The unconsolidated financial statements of the Company for the year ended June 30, 2022 were audited
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of by another firm of auditors whose report, dated September 02, 2022, expressed an unmodified opinion on
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, those unconsolidated financial statements.
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. The engagement partner on the audit resulting in this independent auditor’s report is Khurram Akbar
Khan.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
A. F. Ferguson & Co.
estimates and related disclosures made by management.
Chartered Accountants
• Conclude on the appropriateness of management’s use of the going concern basis of accounting Lahore
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. Date: September 16, 2023
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s UDIN: AR202310070FbZE1KC9d
report to the related disclosures in the unconsolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
190 191
UNCONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AS AT JUNE 30, 2023
2023 2022 2023 2022

Note (Rupees in thousand) Note (Rupees in thousand)
EQUITY AND LIABILITIES ASSETS
SHARE CAPITAL AND RESERVES NON - CURRENT ASSETS
Authorised share capital 5 15,000,000 15,000,000 Property, plant and equipment 20 62,354,608 56,784,840
Intangible assets 21 6,946 10,415
Issued, subscribed and paid-up share capital 5 10,733,462 10,983,462 Long term investment 22 5,030,000 5,020,000
Capital reserves 6 6,363,952 6,092,384 Long term loans to employees - secured 23 18,089 19,366
Accumulated profits 25,946,716 21,023,202 Long term deposits 24 58,401 57,600
Surplus on revaluation of fixed assets - net of tax 7 1,868,984 2,459,967
67,468,044 61,892,221
44,913,114 40,559,015
NON - CURRENT LIABILITIES
Long term loans from financial institutions - secured 8 15,233,337 16,747,868 CURRENT ASSETS
Deferred grant 9 605,926 786,758
Long term loan from subsidiary company 10 2,000,000 2,000,000 Stores, spare parts and loose tools 25 9,925,852 12,853,605
Long term liability against right of use asset 11 31,408 27,136 Stock-in-trade 26 3,874,605 2,695,621
Long term deposits 12 8,214 8,214 Trade debts 27 2,600,988 2,066,212
Deferred taxation 13 8,669,211 5,656,499 Loans and advances 28 868,404 594,906
Retention money 14 1,752,988 - Short term investment 29 3,689,556 198,346
Retirement benefits 15 278,492 235,329 Short term deposits and prepayments 30 482,930 542,588
Accrued profit 31 8,792 7,075
28,579,576 25,461,804 Other receivables 32 22,531 52,261
CURRENT LIABILITIES Advance income tax - net of provision 33 25,302 517,799
Cash and bank balances 34 740,707 793,576
Current portion of:
- Long term loans from financial institutions - secured 8 2,599,401 2,619,800 22,239,667 20,321,989
- Deferred grant 9 179,766 184,576
- Liability against right of use assets 11 10,257 6,837
Trade and other payables 16 12,518,180 9,117,414
Unclaimed dividend 27,378 27,569
Mark-up accrued on borrowings 17 880,039 665,122
Short term borrowings 18 - 3,572,073
16,215,021 16,193,391
CONTINGENCIES AND COMMITMENTS 19

89,707,711 82,214,210
89,707,711 82,214,210
The annexed notes from 1 to 57 form an integral part of these unconsolidated financial statements.
The Chief Executive Officer is for the time being not available in Pakistan, therefore, these unconsolidated
financial statements are signed by two directors.
DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR

192 193
UNCONSOLIDATED STATEMENT OF UNCONSOLIDATED STATEMENT OF
PROFIT OR LOSS COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2023 FOR THE YEAR ENDED JUNE 30, 2023
2023 2022 2023 2022

Sales - net 35 62,075,259 48,519,622 Profit after taxation 4,491,669 3,626,340
Cost of sales 36 (45,651,503) (36,244,156) Other comprehensive income
Gross profit 16,423,756 12,275,466 Items that will not be subsequently reclassified to
statement of profit or loss:
Distribution cost 37 (2,001,499) (1,483,876)
Administrative expenses 38 (1,380,607) (971,453) Remeasurement of defined benefit liability (18,830) 1,726
Related tax 6,977 (557)
Net impairment loss on financial assets 27.1 (191,421) (209,920)
(11,853) 1,169
Other charges 39 (995,460) (742,280) Change in fair value of investment at fair value
through OCI 29 263,437 -
(4,568,987) (3,407,529)
Tax effect of change in fair value of investment at fair
Other income 40 146,646 56,601 value through OCI (65,859) -
Profit from operations 12,001,415 8,924,538 197,578 -

Surplus on revaluation of fixed assets:
Finance cost 41 (2,750,748) (1,741,026) Effect on deferred tax due to change in effective tax rate (147,285) -
Profit before taxation 9,250,667 7,183,512 Items that may be subsequently reclassified to
statement of profit or loss: - -
Taxation 42 (4,758,998) (3,557,172)
Other comprehensive income for the year 38,440 1,169
Profit after taxation 4,491,669 3,626,340
Total comprehensive income for the year 4,530,109 3,627,509
------------- Rupees -------------

Earnings per share - basic and diluted 43 4.18 3.30
DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR
194 195
UNCONSOLIDATED STATEMENT OF CASH FLOWS UNCONSOLIDATED STATEMENT OF
FOR THE YEAR ENDED JUNE 30, 2023 CHANGES IN EQUITY
2023 2022
Note (Rupees in thousand) FOR THE YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 9,250,667 7,183,512
Adjustments for:
Revenue
Depreciation 20.1.1 3,471,880 3,231,589 Capital Reserves
Reserve
Amortization 21.1 3,469 2,388 Share Total
Surplus on
Provision for expected credit loss 27.1 180,000 50,049 Capital Share
Capital Own shares
FVOCI revaluation of Accumulated Equity
Bad debts written off 27.1 11,421 159,871 redemption purchase for Sub - total
premium reserve fixed assets - profits
reserve cancellation
Advances written off 38 2,509 9,209 net of tax
Provision for Workers' Profit Participation Fund 16.3 56,319 376,250 -------------------------------------------------------------------------- Rupees in thousand -----------------------------------------------------------------
Provision for Workers' Welfare Fund 16.4 189,936 92,486
(Gain) / Loss on disposal of property, plant and equipment 40 (42,382) 3,043 As at July 01, 2021 10,983,462 6,060,550 528,263 - - 6,588,813 3,089,975 16,880,291 37,542,541
Exchange Gain on cash & cash equivalents (7,847) (3,976) Total comprehensive income for the year
Gain on re-measurement of short term investments at fair value 39 6,773 25,802
Notional interest on unwinding of retention money payable 41 2,790 27,828 Profit for the year ended June 30, 2022 - - - - - - - 3,626,340 3,626,340
Other comprehensive income for the year ended
Notional interest on unwinding of payable to government authority 41 216 9,871 June 30, 2022 - - - - - - - 1,169 1,169
Retirement benefits 15 78,212 57,340
- - - - - - - 3,627,509 3,627,509
Profit on bank deposits 40 (53,781) (23,391)
Finance cost 41 2,747,741 1,703,327 Own shares purchased during the year for cancellation
(note 6.3) - - - (496,429) - (496,429) - - (496,429)
Cash generated from operations before working capital changes 15,897,923 12,905,198
Effect on cash flows due to working capital changes Incremental depreciation from surplus on revaluation
of fixed assets - net of tax - - - - - - (513,416) 513,416 -
(Increase) / decrease in current assets
Stores, spare parts and loose tools 2,927,753 (3,114,888) Reversal of revaluation surplus on disposal of
fixed assets - net of tax - - - - - - (1,986) 1,986 -
Stock-in-trade (1,178,984) (545,438)
Trade debts (726,197) (596,428) Effect on deferred tax due to change in effective tax rate
Loans and advances (276,007) (122,623) due to proportion of local and export sales - - - - - - (114,606) - (114,606)
Short term deposits and prepayments 59,658 (317,548) Balance as at June 30, 2022 10,983,462 6,060,550 528,263 (496,429) - 6,092,384 2,459,967 21,023,202 40,559,015
Other receivables 29,730 113,574
Own shares purchased during the year for cancellation (250,000) - (422,439) 496,429 - 73,990 - - (176,010)
835,953 (4,583,351)
Decrease in current liabilities Total comprehensive income for the year
Trade and other payables 3,343,875 775,175 Profit for the year ended June 30, 2023 - - - - - - - 4,491,669 4,491,669
4,179,828 (3,808,176) Other comprehensive income for the year ended
June 30, 2022 - - - - 197,578 197,578 (147,285) (11,853) 38,440
Net cash generated from operations 20,077,751 9,097,022
- - - - 197,578 197,578 (147,285) 4,479,816 4,530,109
Decrease / (increase) in long term loans to employees 1,277 (2,362)
Decrease in long term deposits to suppliers (801) (298) Incremental depreciation from surplus on revaluation
Increase in retention money payable 1,750,198 - of fixed assets - net of tax - - - - - - (443,313) 443,313 -
Retirement benefits paid (53,879) (43,319) Reversal of revaluation surplus on disposal of
Decrease in payable to Government Authority - (22,965) fixed assets - net of tax - - - - - - (385) 385 -
Workers' Profit Participation Fund paid (106,080) (88,151)
Workers' Welfare Fund paid (64,844) (23,185) Balance as at June 30, 2023 10,733,462 6,060,550 105,824 - 197,578 6,363,952 1,868,984 25,946,716 44,913,114
Taxes paid - net of refund (1,459,957) (586,635)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure (9,071,126) (15,790,494) The Chief Executive Officer is for the time being not available in Pakistan, therefore, these unconsolidated financial statements are signed by two directors.
Intangible assets acquired - (6,786)
Proceeds from disposal of property, plant and equipment 89,125 30,583
Long term investment - MLIL (10,000) -
Short term investment 29 (3,234,546) (75,000)
Profit on bank deposits received 52,064 22,377
Net cash used in investing activities (12,174,483) (15,819,320)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments) / Proceeds from long term loans from financial institutions
- secured - net (1,720,571) 6,898,075
Proceeds from long term loans from subsidiary company - 1,000,000
Short term borrowings - net 18 (2,174,578) 490,990
Finance cost paid (2,527,786) (1,296,781)
Lease rentals paid (14,611) (12,425)
Own share purchased for cancellation (194,661) (477,778)
Dividend paid (191) (565)
Net cash (used in) / generated from financing activities (6,632,403) 6,601,516
Net increase / (decrease) in cash and cash equivalents 1,336,779 (887,697)
Exchange Gain on cash & cash equivalents 7,847 3,976
Cash and cash equivalents at end of the year 44 740,707 (603,919)
The Chief Executive Officer is for the time being not available in Pakistan, therefore, these unconsolidated financial statements are DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR
signed by two directors.

196 197
NOTES TO THE UNCONSOLIDATED - Provision of and directives issued under the Companies Act, 2017.
FINANCIAL STATEMENTS Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS,
the provisions of and directives issued under the Companies Act, 2017 have been followed.
FOR THE YEAR ENDED JUNE 30, 2023
2.3 Basis of measurement
1. REPORTING ENTITY
These unconsolidated financial statements have been prepared under the historical cost
1.1 Maple Leaf Cement Factory Limited (“the Company”) was incorporated in Pakistan on April convention except as otherwise stated in these unconsolidated financial statements.
13, 1960 under the Companies Act, 1913 (now the Companies Act, 2017) as a public company
limited by shares. The Company is listed on Pakistan Stock Exchange. The registered office 2.4 Functional and presentation currency
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 These unconsolidated financial statements have been prepared in Pak Rupees (“Rs.”) which is
of the Company is production and sale of cement. The Company is a subsidiary of Kohinoor the Company’s functional currency.
Textile Mills Limited (“the Ultimate Holding Company”).
Figures in the unconsolidated financial statements have been rounded-off to the nearest
2. BASIS OF PREPARATION thousand Rupees except stated otherwise.
2.1 Separate financial statements 2.5 Use of estimates and judgments
These unconsolidated financial statements are the separate financial statements of the The preparation of unconsolidated financial statements in conformity with approved accounting
Company in which investment in subsidiaries is accounted for on the basis of direct equity standards requires management to make judgments, estimates and assumptions that affect
interest rather than on the basis of reported results and net assets of the investees. Consolidated the application of policies and reported amounts of assets, liabilities, income and expenses.
financial statements of the Company are prepared and presented separately. 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
The Company has the following long term investments: 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.
2023 2022
(Direct holding percentage) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
Subsidiary Company 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
Maple Leaf Power Limited 2.1.1 100 100 both current and future periods.
Maple Leaf Industries Limited 2.1.2 100 0
The areas where assumptions and estimates are significant to the Company’s unconsolidated
2.1.1 Maple Leaf Power Limited (“MLPL”) was incorporated in Pakistan on October 15, 2015 as a financial statements or where judgment was exercised in application of accounting policies
public limited company under the Companies Ordinance, 1984 (now Companies Act, 2017). are as follows:
MLPL has been established to set up and operate a 40 megawatt coal fired power generation
plant at Iskanderabad, District Mianwali, Punjab, Pakistan for generation of electricity. MLPL’s - Provision for employee benefits - Note 3.1.
registered office is located at 42 - Lawrence Road, Lahore. MLPL’s principal objective is to - Contingent taxation liabilities - Note 3.2.
develop, design, operate and maintain electric power generation plant and in connection - Revaluation of property, plant and equipment - Note 3.4.
therewith to engage in the business of generation, sale and supply of electricity. - Useful lives and residual values of property, plant & equipment - Note 3.4.1.
- Provision for slow moving stores, spare parts & loose tools - Note 3.7.
2.1.2 Maple Leaf Industries Limited (“MLIL”) is a Limited Company incorporated in Pakistan on - Net realisable value of stock-in-trade - Note 3.8.
September 21, 2022 as a public limited company under Companies Act, 2017. MLIL’s objective - Expected credit loss against trade debts, deposits, advances and other receivables - Note
is to produce, manufacture, prepare, treat, process, refine, and deal in all kinds of cement and 3.10.
its allied products. The registered office of MLIL is situated at 42-Lawrence Road, Lahore, - Recoverable amount of assets and cash generating units - Note 3.10.
Pakistan. MLIL has not yet commenced its commercial operations.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.2 Statement of compliance
The significant accounting policies set out below have been consistently applied to all periods
These financial statements have been prepared in accordance with the accounting and presented in these unconsolidated financial statements.
reporting standards as applicable in Pakistan. The accounting and reporting standards
applicable in Pakistan comprise of: 3.1 Employee benefits
- International Financial Reporting Standards (IFRS) issued by the International Accounting Defined contribution plan
Standards Board (IASB) as notified under the Companies Act 2017;
The Company operates a defined contributory approved Provident Fund Trust for all its
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered employees. Equal monthly contributions are made both by the Company and employees at
Accountants of Pakistan as notified under the Companies Act, 2017; and the rate of 10% of the basic salary to the Provident Fund Trust. Obligation for contributions to
defined contribution plan is expensed as the related service is provided.
198 199
Defined benefit plan Current
The Company operates approved funded gratuity scheme for all its full time permanent Provision of current tax is based on the taxable income for the year determined in accordance
workers who have completed the minimum qualifying period of service of one year. Provision with the prevailing law for taxation of income. The charge for current tax is calculated using
is made annually to cover obligations under the scheme on the basis of actuarial valuation and prevailing tax rates or tax rates expected to apply to profit for the year if enacted after taking into
is charged to unconsolidated statement of profit or loss. account tax credits, rebates and exemptions, if any. The charge for current tax also includes
adjustments, where considered necessary, to provision for tax made in previous years arising
The Company’s net obligation in respect of defined benefit plan is calculated by estimating from assessments framed during the year for such years. Where there is uncertainty in income
the amount of future benefit that employees have earned in the current and prior periods, tax accounting i.e. when it is not probable that the tax authorities will accept the treatment, the
discounting that amount and deducting the fair value of any plan assets. impact of the uncertainty is measured and accounted for using either the most likely amount
or the expected value method, depending on which method better predicts the resolution of
Calculation of defined benefit obligation is performed annually by a qualified actuary using the uncertainty. Such judgements are reassessed whenever circumstances have changed or
the projected unit credit method for valuation. The latest valuation was carried out at June 30, there is new information that affects the judgements. Where, at the assessment stage, the
2023. When the calculation results in a potential asset for the Company, the recognized asset taxation authorities have adopted a different tax treatment and the Company considers that the
is limited to the present value of economic benefits available in the form of any future refunds most likely outcome will be in favour of the Company, the amounts are shown as contingent
from the plan or reductions in future contribution to the plan. To calculate the present value of liabilities. In making a judgment and / or estimate relating to probability of outcome, the
economic benefits, consideration is given to any applicable minimum funding requirements. management considers laws, statutory rules, regulations and their interpretations. Where,
based on management’s estimate, a provision is required, the same is recorded in the financial
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, statements.
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 Deferred
(income) on the net defined benefit liability (asset) for the period by applying the discount rate
used to measure the defined benefit obligation at beginning of the annual period to the then- Deferred tax is accounted for using the liability method in respect of all temporary differences
net defined benefit liability (asset), taking into account any changes in the net defined benefit arising from differences between the carrying amount of assets and liabilities in the financial
liability (asset) during the period as a result of contributions and benefit payments. Net interest statements and the corresponding tax bases used in the computation of the taxable profit.
expense and other expenses related to defined benefit plan is recognized in unconsolidated Deferred tax liabilities are generally recognized for all taxable temporary differences and
statement of profit or loss. deferred tax assets are recognized to the extent that it is probable that future taxable profits
will be available against which the deductible temporary differences, unused tax losses and
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in tax credits can be utilized.
benefit that relates to past service or the gain or loss on curtailment is recognized immediately
in unconsolidated statement of profit or loss. The Company recognizes gains and losses on Deferred tax assets and liabilities are calculated at the rates that are expected to apply to
the settlement of a defined benefit plan when the settlement occurs. the period when the asset is realized or the liability is settled, based on the tax rates and tax
laws that have been enacted or substantively enacted by the reporting date. Deferred tax
Liability for employees’ compensated absences - other long term benefits is charged or credited to the unconsolidated statement of profit or loss, except in the case
of items charged or credited to equity or other comprehensive income, in which case it is
The Company accounts for the liability in respect of employees’ compensated absences in the included in the unconsolidated statement of changes in equity or unconsolidated statement of
year in which these are earned. Provision to cover the obligations is made using the current comprehensive income as the case may be.
salary level of employees. The unutilized leaves are accumulated subject to a maximum
of 90 days. The unutilized accumulated leaves can be encashed at the time the employee Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to
leaves Company service. The Company uses the actuarial valuations carried out using the the period when the asset is realized or the liability is settled, based on the tax rates that have
projected unit credit method for valuation of its accumulated compensating absences. The been enacted or substantively enacted by the statement of financial position date.
latest valuation was carried out on June 30 2023. Provisions are made annually to cover the
obligation for accumulating compensated absences based on actuarial valuation and are 3.3 Leases
charged to the unconsolidated statement of profit or loss. The amount recognized in the
unconsolidated statement of financial position represents the present value of the defined The Company is the lessee
benefit obligations. Actuarial gains and losses are charged to the unconsolidated statement of
profit or loss immediately in the period when these occur. At inception of a contract, the Company assesses whether a contract is, or contains, a lease
based on whether the contract conveys the right to control the use of an identified asset for a
3.2 Taxation period of time in exchange for consideration. Lease terms are negotiated on an individual basis
and contain a wide range of different terms and conditions.
Income tax expense comprises current and deferred tax. Income tax is recognized in
the unconsolidated statement of profit or loss except to the extent that it relates to items At initial recognition, leases are recognised as a right-of-use asset and a corresponding liability
recognized directly in equity or other comprehensive income, in which case it is recognized in at the date at which the leased asset is available for use by the Company.
unconsolidated statement of changes in equity or unconsolidated statement of comprehensive
income as the case may be. The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease, or if
that rate cannot be readily determined, the Company’s incremental borrowing rate.
200 201
Lease payments include fixed payments, variable lease payments that are based on an index Gains / losses on disposal or retirement of tangible assets, if any, are taken to the unconsolidated
or a rate amounts expected to be payable by the lessee under residual value guarantees, the statement of profit or loss.
exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising Depreciation is calculated at the rates specified in note 20.1 on reducing balance method except
that option, less any lease incentives receivable. The extension and termination options are for the plant and machinery and buildings relating to dry process plant for which straight line
incorporated in determination of lease term only when the Company is reasonably certain to method is used after deducting residual value. Depreciation on additions to property, plant and
exercise these options. equipment is charged from the month in which the item becomes available for use. Depreciation
is discontinued from the month in which it is disposed or classified as held for disposal.
The lease liability is subsequently measured at amortised cost using the effective interest
rate method. It is remeasured when there is a change in future lease payments arising from a Increase in the carrying amounts arising on revaluation of land, building, road bridges and
change in fixed lease payments or an index or rate, change in the Company’s estimate of the railway sidings and plant and machinery is recognised, in other comprehensive income and
amount expected to be payable under a residual value guarantee, or if the Company changes accumulated in reserves in shareholders’ equity. To the extent that the increase reverses a
its assessment of whether it will exercise a purchase, extension or termination option. The decrease previously recognised in profit or loss, the increase is first recognised in profit or
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is loss. Decreases that reverse previous increases of the same asset are first recognised in other
recorded in the unconsolidated statement of profit or loss if the carrying amount of right-of- comprehensive income to the extent of the remaining surplus attributable to the asset; all
use asset has been reduced to zero. other decreases are charged to profit or loss.
The right-of-use asset is initially measured based on the initial amount of the lease liability The Company reviews the useful lives and residual values of property, plant and equipment
adjusted for any lease payments made at or before the commencement date, plus any initial annually by considering expected pattern of economic benefit that the Company expects
direct costs incurred and an estimate of costs to dismantle and remove the underlying asset to drive from the item and the maximum period up to which such benefits are expected to
or to restore the underlying asset or the site on which it is located, less any lease incentive be available. Any change in estimates in future years might affect the carrying amounts of
received. The right-of use asset is depreciated on a straight line method over the lease term the respective items of property, plant and equipment with a corresponding effect on the
as this method most closely reflects the expected pattern of consumption of future economic depreciation charge and impairment.
benefits. The right-of-use asset is reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability. The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each
unconsolidated statement of financial position date.
Payments associated with short-term leases and all leases of low-value assets are recognised
on a straight-line basis as an expense in unconsolidated statement of profit or loss. Short-term 3.5 Intangible assets
leases are leases with a lease term of 12 months or less without a purchase option.
Intangible asset is stated at cost less accumulated amortization for finite intangible asset and
3.4 Property, plant and equipment 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
Tangible assets except freehold land, buildings on freehold land, roads, bridges and accounted for on a prospective basis.
railway sidings, plant and machinery are stated at cost less accumulated depreciation and
accumulated impairment, if any. Buildings on freehold land, roads, bridges and railway sidings Finite intangible assets are amortized using straight-line method over a period of usage.
and plant and machinery are stated at revalued amount being the fair value at the date of Amortization on additions to intangible assets is charged from the month in which an asset is
revaluation, less any subsequent accumulated depreciation and impairment losses while put to use and on disposal up to the month of disposal.
freehold land is stated at revalued amount being the fair value at the date of revaluation, less
any subsequent impairment losses, if any. Surplus on revaluation is booked by restating gross 3.6 Investment in equity instruments of subsidiaries
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 Investment in subsidiary companies is measured at cost as per the requirements of IAS 27
is also adjusted to equal difference between gross carrying amounts and the carrying amounts “Separate Financial Statements”. However, at subsequent reporting dates, the Company reviews
of the assets after taking into account accumulated impairment losses, if any. The surplus the carrying amount of the investment and its recoverability to determine whether there is an
on revaluation of fixed assets to the extent of the annual incremental depreciation based on indication that such investment has suffered an impairment loss. If any such indication exists
the revalued carrying amount of the asset is transferred annually to retained earnings net of the carrying amount of the investment is adjusted to the extent of impairment loss. Impairment
related deferred tax. Upon disposal, any revaluation reserve relating to the particular assets losses are recognized as an expense in the unconsolidated statement of profit or loss. Where
being sold is transferred to retained earnings. All transfers to / from surplus on revaluation of impairment losses subsequently reverse, the carrying amounts of the investments are increased
fixed assets account are net of applicable deferred income tax. to the revised recoverable amounts but limited to the extent of initial cost of investments. A
reversal of impairment loss is recognized in unconsolidated statement of profit or loss.
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 3.7 Stores, spare parts and loose tools
period are carried under capital work-in-progress. These are transferred to specific assets as
and when these are available for use. 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
Major renewals and improvements to an item of property, plant and equipment are recognized other charges paid thereon.
in the carrying amount of the item if it is probable that the embodied future economic benefits
will flow to the Company and the cost of renewal or improvement can be measured reliably. The Company reviews the stores, spare parts and loose tools for possible impairment on an annual
The cost of the day-to-day servicing of property, plant and equipment are recognized in the basis. Any change in estimates in future years might affect the carrying amounts of the respective
unconsolidated statement of profit or loss as incurred. items of stores, spare parts and loose tools with a corresponding effect on the provision.
202 203
3.8 Stock-in-trade - its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Stocks are valued at the lower of cost and net realizable value. Cost is determined as follows:
These assets are subsequently measured at amortized cost using the effective interest method.
Raw material at weighted average cost The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains
Packing material at weighted average cost and losses and impairment are recognized in the unconsolidated statement of profit or loss.
Work in process at weighted average manufacturing cost Any gain or loss on derecognition is also recognized in the unconsolidated statement of profit
Finished goods at weighted average manufacturing cost or loss.
Average manufacturing cost in relation to work in process and finished goods consists of Financial assets measured at amortized cost comprise of cash and bank balances, deposits,
direct material, labour and a proportion of appropriate manufacturing overheads. loan to employees, accrued profit, term deposit receipts, trade debts and other receivables.
The Company reviews the carrying amount of stock-in-trade on a regular basis. Carrying amount Debt Instrument - FVOCI
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 A debt investment is measured at FVOCI if it meets both of the following conditions and is not
of completion and estimated costs necessary to make the sale. designated as at FVTPL:
Further, the Company’s certain stock items [i.e. raw materials (limestone, clay and gypsum), - it is held within a business model whose objective is achieved by both collecting contractual
work-in-process (clinker) and stores and spares (coal)] are stored in purpose-built sheds, cash flows and selling financial assets; and
stockpiles and silos. As the weighing of these stock items is not practicable, the management
assesses the reasonableness of the on-hand inventory by obtaining measurement of stockpiles - its contractual terms give rise on specified dates to cash flows that are solely payments of
and converting these measurements into unit of volume by using angle of repose and bulk principal and interest on the principal amount outstanding.
density values.
These assets are subsequently measured at fair value. Interest income calculated using the
3.9 Financial instruments effective interest method, foreign exchange gains and losses and impairment are recognized
in the unconsolidated statement of profit or loss. Other net gains and losses are recognized in
3.9.1 Recognition and initial measurement OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
However, the Company has no such instrument at the reporting date.
All financial assets or financial liabilities are initially recognized when the Company becomes
a party to the contractual provisions of the instrument. Equity Instrument - FVOCI
A financial asset (unless it is a trade receivable without a significant financing component) or On initial recognition of an equity investment that is not held for trading, the Company may
financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This
costs that are directly attributable to its acquisition or issue. A receivable without a significant election is made on an investment-by-investment basis.
financing component is initially measured at the transaction price. The Company follows
settlement date accounting for recognition of financial assets acquired through regular way These assets are subsequently measured at fair value. Dividends are recognized as income
trade. in profit or loss unless the dividend clearly represents a recovery of part of the cost of the
investment. Other net gains and losses are recognized in OCI and are never reclassified to
3.9.2 Classification and subsequent measurement profit or loss.
Financial assets Fair value through profit or loss (FVTPL)
On initial recognition, a financial asset is classified as measured at amortized cost, fair value All financial assets not classified as measured at amortized cost or FVOCI as described above
through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). are measured at FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Company On initial recognition, the Company may irrevocably designate a financial asset that otherwise
changes its business model for managing financial assets, in which case all affected financial meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so
assets are reclassified on the first day of the first reporting period following the change in the eliminates or significantly reduces an accounting mismatch that would otherwise arise.
business model.
These assets are subsequently measured at fair value. Net gains and losses, including any
Amortized cost interest or dividend income, are recognized in the unconsolidated statement of profit or loss.
A financial asset is measured at amortized cost if it meets both of the following conditions and Financial assets – Business model assessment:
is not designated as at FVTPL:
For the purposes of the assessment, ‘principal’ is defined as the fair value of the financial asset
- it is held within a business model whose objective is to hold assets to collect contractual on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for
cash flows; and the credit risk associated with the principal amount outstanding during a particular period of
time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as
well as a profit margin.
204 205
In assessing whether the contractual cash flows are solely payments of principal and interest, 3.9.4 Trade Debts
the Company considers the contractual terms of the instrument. This includes assessing
whether the financial asset contains a contractual term that could change the timing or These are classified at amortized cost and are initially recognised when they are originated
amount of contractual cash flows such that it would not meet this condition. In making this and measured at fair value of consideration receivable. Trade debts are written off where there
assessment, the Company considers: is no reasonable expectation of recovery.
- contingent events that would change the amount or timing of cash flows; Indicators that there is no reasonable expectation of recovery include, amongst others, the
failure of a debtor to engage in a repayment plan with the Company, and a failure to make
- terms that may adjust the contractual coupon rate, including variable-rate features; contractual payments for a period of greater than one year past due (considered as default).
- prepayment and extension features; and 3.10 Impairment
- terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse Financial assets
features).
The Company recognizes loss allowances for expected credit losses (ECLs) on:
Financial liabilities
- financial assets measured at amortized cost;
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial - debt investments measured at FVOCI; and
liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it - contract assets.
is designated as such on initial recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any interest expense, are recognized in The Company measures loss allowances at an amount equal to lifetime ECLs, except for the
the unconsolidated statement of profit or loss. Other financial liabilities are subsequently following, which are measured at 12-month ECLs:
measured at amortized cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognized in the unconsolidated statement of - debt securities that are determined to have low credit risk at the reporting date; and
profit or loss. Any gain or loss on derecognition is also recognized in the unconsolidated - other debt securities and bank balances for which credit risk (i.e. the risk of default
statement of profit or loss. occurring over the expected life of the financial instrument) has not increased significantly
since initial recognition.
Financial liabilities comprise trade and other payables, long term loan from subsidiary,
long term loans from financial institutions (including current portion), markup accrued on 12-month ECLs are the portion of ECLs that result from default events that are possible within
borrowings, unclaimed dividend, retention money payable, long term deposits and short the 12 months after the reporting date (or a shorter period if the expected life of the instrument
term borrowings. is less than 12 months).
3.9.3 Derecognition When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECLs, the Company considers reasonable and
Financial assets supportable information that is relevant and available without undue cost or effort. This includes
both quantitative and qualitative information and analysis, based on the Company’s historical
The Company derecognizes a financial asset when the contractual rights to the cash flows experience and informed credit assessment and including forward-looking information.
from the financial asset expire, or it transfers the rights to receive the contractual cash
flows in a transaction in which substantially all of the risks and rewards of ownership of The Company assumes that the credit risk on a financial asset has increased significantly if it
the financial asset are transferred or in which the Company neither transfers nor retains is more than past due for a reasonable period of time. Lifetime ECLs are the ECLs that result
substantially all of the risks and rewards of ownership and it does not retain control of the from all possible default events over the expected life of a financial instrument. 12-month ECLs
financial asset. are the portion of ECLs that result from default events that are possible within the 12 months
after the reporting date (or a shorter period if the expected life of the instrument is less than 12
The Company might enter into transactions whereby it transfers assets recognized in its months). The maximum period considered when estimating ECLs is the maximum contractual
statement of financial position, but retains either all or substantially all of the risks and rewards period over which the Company is exposed to credit risk.
of the transferred assets. In these cases, the transferred assets are not derecognized.
The Company has elected to measure loss allowances for trade debts using IFRS 9 simplified
Financial liabilities approach and has calculated ECLs based on lifetime ECLs. The Company has established a
matrix that is based on the Company’s historical credit loss experience, adjusted for forward-
The Company derecognizes a financial liability when its contractual obligations are discharged looking factors specific to the debtors and the economic environment. When determining
or cancelled, or expire. The Company also derecognizes a financial liability when its terms whether the credit risk of a financial asset has increased significantly since initial recognition
are modified and the cash flows of the modified liability are substantially different, in which and when estimating ECLs, the Company considers reasonable and supportable information
case a new financial liability based on the modified terms is recognized at fair value. On that is relevant and available without undue cost or effort. This includes both quantitative
derecognition of a financial liability, the difference between the carrying amount extinguished and qualitative information and analysis, based on the Company’s historical experience and
and the consideration paid (including any non-cash assets transferred or liabilities assumed) informed credit assessment including forward-looking information.
is recognized in the unconsolidated statement of profit or loss.
Loss allowances for financial assets measured at amortised cost are deducted from the Gross
carrying amount of the assets.
206 207
The Gross carrying amount of a financial asset is written off when the Company has no 3.13.2 Dividends
reasonable expectations of recovering of a financial asset in its entirety or a portion thereof.
The Company individually makes an assessment with respect to the timing and amount of Dividend income is recognized when the Company’s right to receive the dividend is established.
write-off based on whether there is a reasonable expectation of recovery. The Company
expects no significant recovery from the amount written off. However, financial assets that are 3.13.3 Interest income
written off could still be subject to enforcement activities in order to comply with the Company’s
procedures for recovery of amounts due. Interest income is recognised as it accrues under the effective interest method using the rate
that exactly discounts estimated future cash receipts through the expected life of the financial
Non-financial assets asset to the gross carrying amount of the financial asset.
The carrying amount of the Company’s non-financial assets, other than inventories and 3.14 Contract liabilities
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 asset’s recoverable amount A contract liability is the obligation of the Company to transfer goods or services to a customer
is estimated. The recoverable amount of an asset or cash generating unit is the greater of its for which the Company has received consideration (or an amount of consideration is due) from
value in use and its fair value less cost to sell. In assessing value in use, the estimated future the customer. If a customer pays consideration before the Company transfers goods or services
cash flows are discounted to their present values using a pre-tax discount rate that reflects to the customer, a contract liability is recognized when the payment is made or the payment
current market assessments of the time value of money and the risks specific to the asset or is due (whichever is earlier). Contract liabilities are recognized as revenue when the Company
cash generating unit. performs under the contract. It also includes refund liabilities arising out of customers‘ right to
claim amounts from the Company on account of contractual delays in delivery of performance
An impairment loss is recognized if the carrying amount of the assets or its cash generating obligations and incentive on target achievements.
unit exceeds its estimated recoverable amount. Impairment losses are recognized in the
unconsolidated statement of profit or loss. Impairment losses recognized in respect of cash 3.15 Foreign currency translations
generating units are allocated to reduce the carrying amounts of the assets in a unit on a
pro rata basis. Impairment losses recognized in prior periods are assessed at each reporting Transactions in foreign currencies are initially recorded at the rates of exchange ruling on
date for any indications that the loss has decreased or no longer exists. An impairment loss the dates of transactions. Monetary assets and liabilities denominated in foreign currencies
is reversed if there has been a change in the estimates used to determine the recoverable are retranslated into Pak Rupees at exchange rates prevailing on the statement of financial
amount. An impairment loss is reversed only to that extent that the asset’s carrying amount position date. All exchange differences are charged to unconsolidated statement of profit or
after the reversal does not exceed the carrying amount that would have been determined, net loss.
of depreciation and amortization, if no impairment loss had been recognized.
3.16 Borrowings
3.11 Off setting of financial instruments
All borrowings are recorded at the proceeds received. Borrowing costs directly attributable
Financial assets and liabilities are off-set and the net amount reported in the statement of to the acquisition, construction or production of qualifying assets, which are assets that
financial position when there is a legally enforceable right to offset the recognized amounts necessarily take a substantial period of time to get ready for their intended use are added to
and there is an intention and ability to settle on a net basis, or realize the asset and settle the the cost of those assets, until such time as the assets are substantially ready for their intended
liability simultaneously. use. All other borrowing costs are charged to unconsolidated statement of profit or loss in the
period in which these are incurred.
3.12 Cash and cash equivalents
3.17 Provisions
Cash and cash equivalents for the purpose of statement of cash flows comprise cash in hand,
running finance and cash at banks. 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
3.13 Revenue recognition obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
unconsolidated statement of financial position date and adjusted to reflect the current best
Revenue from contracts with customers is recognised, when control of goods is transferred to estimate.
the customers, at an amount that reflects the consideration to which the Company expects to
be entitled in exchange for those goods excluding sales taxes and trade discounts. Specific 3.18 Earnings per share (EPS)
revenue and other income recognition policies are as follows:
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
3.13.1 Sale of goods Company by weighted average number of ordinary shares outstanding during the year.
Revenue from sale of goods is recognized at the point in time when control of the asset is Diluted EPS is calculated by adjusting basic EPS with weighted average number of ordinary
transferred to the customer which on the basis of current agreement with majority of the shares that would be issued on conversion of all dilutive potential ordinary shares into ordinary
customers, is when the goods are dispatched to customers and in very few cases when goods shares and post-tax effect of changes in profit or loss attributable to ordinary shareholders of
are delivered to the customers, in case of local sales. Further in case of export sale, control is the Company that would result from conversion of all dilutive potential ordinary shares into
transferred when goods are shipped to the customers or received at customer’s country port. ordinary shares.
208 209
3.19 Dividend to ordinary shareholders 3.25 Own shares purchased for cancellation
Dividend to ordinary shareholders is recognized as a deduction from accumulated profit and When shares recognized as equity are repurchased, the amount of the consideration paid, which
as a liability in the Company’s unconsolidated statement of financial position in the year in includes directly attributable costs, is recognized as a deduction from equity. Repurchased
which the dividends are approved by the Board of Directors or the Company’s shareholders as shares are classified as own shares purchased for cancellation and are presented in the
the case may be. statement of changes in equity as a separate reserve.
3.20 Mark-up bearing borrowings 4. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED
ACCOUNTING STANDARDS THAT ARE NOT YET EFFECTIVE
Mark-up bearing borrowings are recognized initially at cost representing the fair value of
consideration received less attributable transaction costs. Subsequent to initial recognition, 4.1 Initial application of standards, amendments or an interpretation to existing standards
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) Certain standard amendments and interpretations to approved accounting standards are
and redemption value is recognized in the unconsolidated statement of profit or loss over effective for the accounting periods beginning on or after July 1, 2022 but are considered not
the period of borrowings on an effective rate basis. The borrowing cost on qualifying asset is to be relevant or to have any significant effect on the Company operations and are, therefore,
included in the cost of related asset. not detailed in these financial statements.
3.21 Share Capital 4.2 New accounting standards / amendments and IFRS interpretations that are not yet
effective
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
ordinary shares are recognized as a deduction from equity, net of any tax effects. There are certain standards, amendments to the accounting standards and interpretations that
are mandatory for the Company’s accounting periods beginning on or after July 01, 2023 but
3.22 Contingent liabilities are considered not to be relevant to the Company’s operations and are, therefore, not detailed
in these financial statements, except for the following:
A contingent liability is disclosed when:
4.2.1 Amendments to IAS 1, Classification of liabilities as current or non-current
- there is a possible obligation that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future The narrow-scope amendments to IAS 1 Presentation of Financial Statements, effective for
events not wholly within the control of the Company; or accounting periods beginning on or after January 01, 2023, clarify that liabilities are classified
as either current or non-current, depending on the rights that exist at the end of the reporting
- there is present obligation that arises from past events but it is not probable that an outflow period. Classification is unaffected by the expectations of the entity or events after the reporting
of resources embodying economic benefits will be required to settle the obligation or the date (e.g. the receipt of a waiver or a breach of covenant). The amendments also clarify what
amount of the obligation cannot be measured with sufficient reliability. IAS 1 means when it refers to the settlement of a liability.
3.23 Segment reporting The amendments could affect the classification of liabilities, particularly for entities that
previously considered management’s intentions to determine classification and for some
A segment is a distinguishable component of the Company that is engaged either in providing liabilities that can be converted into equity.
products or services (business segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risk and rewards that are These amendments are not expected to have a material impact on the Company’s financial
different from other segments. Operating segment are reported in a manner consistent with statements when they become effective.
the internal reporting provided to the chief operating decision maker. The chief operating
decision maker who is responsible for allocating resources and assessing performance of the 4.2.2 Amendments to IAS 1 and IFRS Practice Statement 2, Disclosure of Accounting
operating segments, has been identified as the Board of Director of the Company that makes Policies.
strategic decisions.
The IASB amended IAS 1 to require entities to disclose their material rather than their significant
3.24 Government Grant accounting policies. The amendments define what is ‘material accounting policy information’
and explain how to identify when accounting policy information is material. They further clarify
The Company follows deferral method of accounting for government grant related to subsidized that immaterial accounting policy information does not need to be disclosed. If it is disclosed,
long term loan. Government grant is initially recognized as deferred grant and measured as it should not obscure material accounting information.
the difference between the initial carrying value of the long term loan recorded at market rate
(i.e. fair value of the long term loan in this case) and the proceeds of subsidized long term To support this amendment, the IASB also amended IFRS Practice Statement 2 Making
loan received. In subsequent years, the grant is recognized in the unconsolidated statement of Materiality Judgements to provide guidance on how to apply the concept of materiality to
profit or loss, in line with the recognition of interest expenses the grant is compensating and is accounting policy disclosures.
presented as a reduction of related interest expense.
The above mentioned amendments are effective for accounting periods beginning on or after
January 01, 2023.
The Company is in the process of assessing the impact of this amendment on the Company’s
financial statements.
210 211
4.2.3 Amendments to IAS 12, Deferred Tax related to Assets and Liabilities arising from a 5.2 Issued, subscribed and paid-up share capital
Single Transaction
Number of 2023 2022
The amendments to IAS 12 Income Taxes, effective for accounting periods beginning on Note shares (Rupees in thousand)
or after January 01, 2023, require companies to recognise deferred tax on transactions
that, on initial recognition, give rise to equal amounts of taxable and deductible temporary Number of shares
differences. They will typically apply to transactions such as leases of lessees and
decommissioning obligations and will require the recognition of additional deferred tax (2022: 860,972,162) ordinary shares
assets and liabilities. of Rs. 10 each fully paid in cash 5.2.1 835,972,162 8,359,721 8,609,721
The Company is in the process of assessing the impact of this amendment on the Company’s (2022: 35,834,100) ordinary shares
financial statements. of Rs. 10 each issued as fully paid
for consideration other than cash 5.2.2 35,834,100 358,341 358,341
4.2.4 Amendments to IAS 8, Definition of Accounting Estimates
(2022: 46,069,400) ordinary shares
The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and of Rs. 10 each issued as fully paid 46,069,400 460,694 460,694
Errors, effective for accounting periods beginning on or after January 01, 2023, clarifies how bonus shares
companies should distinguish changes in accounting policies from changes in accounting
estimates. The distinction is important, because changes in accounting estimates are applied (2022: 153,846,153) ordinary
prospectively to future transactions and other future events, whereas changes in accounting shares of Rs. 10 each issued as fully 5.2.3 153,846,153 1,538,462 1,538,462
policies are generally applied retrospectively to past transactions and other past events as well right shares at discount
as the current period.
(2022: 1,624,417) ordinary shares
These amendments are not expected to have a material impact on the Company’s financial of Rs. 10 each issued as conversion of
statements when they become effective. preference shares into ordinary shares 5.2.4 1,624,417 16,244 16,244
4.2.5 Amendments to IFRS 16, Leases on sale and leaseback 5.2.5 1,073,346,232 10,733,462 10,983,462
The amendment to IFRS 16 Leases on sale and leaseback, effective for accounting periods
beginning on or after January 01, 2023, requires companies to explain how an entity 5.2.1 The Company has bought back 25 million shares for the purpose of cancellation from May
accounts for a sale and leaseback after the date of the transaction. Sale and leaseback 26, 2022 to July 5, 2022 at market price prevailing at the date of purchase. The purchase was
transactions where some or all the lease payments are variable lease payments that do made pursuant to approvals of Board of Directors and the shareholders of the Company in
not depend on an index or rate are most likely to be impacted. These amendments are their meeting held on April 19, 2022 and May 17, 2022 respectively, where the company
not expected to have a material impact on the Company’s financial statements when they was allowed to purchase / buy back its issued ordinary shares up to the maximum of 25
become effective. million ordinary shares, through Pakistan Stock Exchange Limited, at spot / current share
price prevailing during the period from May 26, 2022 to August 15, 2022. These shares were
4.2.6 Amendment to IAS 1 – Non-current liabilities with covenants cancelled on July 15, 2022.
The amendment to IAS 1 Non-current liabilities with covenants, effective for accounting 5.2.2 During the financial year 1992, pursuant to merger of White Cement Industries Limited and
periods beginning on or after January 01, 2024, clarify how conditions with which an entity Pak Cement Capital Limited with and into the Company, the Company issued 3,503,000
must comply within twelve months after the reporting period affect the classification of a ordinary shares at the rate of Rs. 10 each to the shareholders of White Cement Industries
liability. The amendments also aim to improve information an entity provides related to liabilities Limited and 6,487,100 ordinary shares at the rate of Rs. 10 each to the shareholders of
subject to these conditions. These amendments are not expected to have a material impact on Pak Cement Company Limited respectively. Further, during financial year 2001, pursuant to
the Company’s financial statements when they become effective. merger of Maple Leaf Electric Company Limited with and into the Company, the Company
issued 25,844,000 ordinary shares at the rate of Rs. 10 each to the shareholders of Maple
5. SHARE CAPITAL Leaf Electric Company Limited. The shares were issued in accordance with the schemes of
merger approved by the share holders of the Company.
5.1 Authorised share capital
Number of 2023 2022 5.2.3 During the financial year ended June 30, 2011, Company issued 153,846,153 shares at Rs. 6.50
shares (Rupees in thousand) 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.
(2022: 1,400,000,000) ordinary shares 1,400,000,000 14,000,000 14,000,000
of Rs. 10 each 5.2.4 During the financial years ended June 30, 2011 and June 30, 2012, 1,321,095 preference shares
were converted into 1,624,417 ordinary shares at a conversion rate of 1.2296.
(2022: 100,000,000) 9.75% redeemable 100,000,000 1,000,000 1,000,000
cumulative preference shares of Rs. 10 each
1,500,000,000 15,000,000 15,000,000
212 213
Number of 2023 2022 2023 2022
shares (Rupees in thousand) (Rupees in thousand)
5.2.5 Movement of Issued, subscribed and
paid-up share capital Deferred tax liability on revaluation surplus
At beginning of the year 1,098,346,232 10,983,462 10,983,462 At beginning of the year 996,181 1,085,659
Own shares purchased during the year (25,000,000) (250,000) - Transferred to unappropriated profit in respect of
disposal of fixed assets during the year (226) (786)
At end of the year 1,073,346,232 10,733,462 10,983,462
Transferred to unappropriated profit in respect of
incremental depreciation charged during the year (260,918) (203,298)
5.3 The Holding Company holds 606,497,944 (2022: 606,497,944) ordinary shares, which
represents 56.51% (2022: 55.22%) of total ordinary issued, subscribed and paid-up share Effect of change in effective tax rate due to proportion of
capital of the Company. local and export sales 147,285 114,606
5.4 Directors of the Company hold 96,706 (2022: 98,730) ordinary shares of Rs. 10 each of the At end of the year 882,322 996,181
Company.
2023 2022 1,868,984 2,459,967
Note (Rupees in thousand)
6. CAPITAL RESERVES
7.1 The Company’s freehold land, buildings on freehold land, roads, bridges and railway sidings
Capital redemption reserve 6.1 105,824 528,263 and plant and machinery were revalued by Arif Evaluators, an independent valuer not
Share premium reserve 6.2 6,060,550 6,060,550 connected with the Company and approved by Pakistan Banks’ Association (PBA) in “any
Own share purchased for cancellation 5.2.1 - (496,429) amount” category, at June 30, 2020. The basis of revaluation for items of these fixed assets
FVOCI reserve 6.3 197,578 - were as follows:
6,363,952 6,092,384 Freehold land
Fair market value of freehold land was assessed through inquiries to real estate agents and
6.1 This reserve has been created under section 85 of the repealed Companies Ordinance, 1984 property dealers in near vicinity of freehold land. Different valuation methods and exercises
for redemption of shares. were adopted according to experience, location and other usage of freehold land. Valuer
had also considered all relevant factors as well.
6.2 This reserve can be utilized by the Company only for the purpose specified in section 81(2) of
the Companies Act, 2017. Buildings on freehold land, roads, bridges and railway sidings
6.3 This represents the unrealised gain on remeasurement of equity investments at FVOCI and is Construction specifications were noted for each building and structure and new construction
not available for distribution. rates are applied according to construction specifications for current replacement values.
2023 2022 After determining current replacement values, depreciation was calculated to determine
(Rupees in thousand) the current assessed market value.
7. SURPLUS ON REVALUATION OF
FIXED ASSETS - NET OF TAX Plant and machinery
At beginning of the year 3,456,148 4,175,634 Suppliers and different cement plant consultants in Pakistan and abroad were contacted
to collect information regarding current prices of comparable cement plant to determine
Surplus on disposal of fixed assets during the year current replacement value. Fair depreciation factor for each item is applied according to
- net of deferred tax (385) (1,986) their physical condition, usage and maintenance.
Related deferred tax liability (226) (786)
Transfer to unappropriated profit in respect of

incremental depreciation charged during the
year - net of deferred tax (443,313) (513,416)
Related deferred tax liability (260,918) (203,298)
At end of the year 2,751,306 3,456,148
214 215
216
8. LONG TERM LOANS FROM FINANCIAL INSTITUTIONS - SECURED
Sanctioned
Lender 2023 2022 Remaining Tenor of Principal Repayments Mark-up as per Agreement Security
Limit
---------------- Rupees in ‘000’ ----------------
1 Askari Bank Limited - Term Finance 707,130 459,634 636,416 13 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 1,333.33
from December 28, 2023. in arrears, from 1st drawdown to be set on last million over fixed assets of the Company
business day before first draw down and then inclusive of 25% margin as below:
on immediately preceding day of each quarter. - Hypothecation charge over all present and
future plant and machinery of the Company.
- Land and Building of Cement Unit Phase II
and additional bare land measuring 30 Kanals
adjacent to it.
2 Bank of Punjab - Demand Finance 1,253,119 814,528 1,190,463 13 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 7,903 million
from February 27, 2024. in arrears, to be reset on last working day of over all present and future fixed assets of
preceding calendar quarter. the Company with 25% margin and personal
guarantee of Mr. Tariq Sayeed Saigol and Mr.
Sayeed Tariq Saigol (sponsoring directors and
key management personnel).
3 MCB Bank Limited - Demand Finance 1,451,920 775,650 889,149 11 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of 38,051 million
from June 24, 2024. in arrears, to be reset on 1st working day of ( MCB Share Rs 4,500 million) over all present
each quarter. and future fixed assets of the Company.
4 National Bank of Pakistan - Demand 5,500,000 1,280,001 2,565,714 09 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable 1st Joint Pari Passu charge of Rs. 10,000
Finance from September 30, 2024. quarterly in arrears, to be reset on last million over fixed assets of the Company and
business day before first draw down and personal guarantee of Mr. Tariq Sayeed Saigol
then on immediately preceding day of each and Mr. Sayeed Tariq Saigol (sponsoring
calendar quarter. directors and key management personnel).
5 Samba Bank Limited - Term Finance 450,000 262,500 412,500 07 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly Joint Pari Passu charge of Rs. 600 million
from July 01, 2023. in arrears, to be reset on 1st working day of on all present and future fixed assets of the
each calendar quarter Company including land.
6 MCB Bank Limited (EX NIB) - Term 1,488,379 - 962,878 This loan has been fully repaid during the 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of 38,051 million
Finance period. in arrears, to be reset on the first working day ( MCB Share Rs. 4,500 million) over all present
of every calendar quarter. and future fixed assets of the Company.
7 MCB Islamic Bank Limited - Diminishing 1,500,000 822,807 1,045,285 Repayment will made in following 3-Month KIBOR + 70 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 2,000 million
Musharakah tranches. in arrears, to be set on the date of first day of over all present and future fixed assets of the
Tranche 1 disbursement and to be reset on 1st working Company including land and building and
12 equal quarterly installments starting day of each calendar quarter. personal guarantee of Mr. Tariq Sayeed Saigol
from August 23, 2023. and Mr. Sayeed Tariq Saigol (sponsoring
Tranche 2 directors and key management personnel).
12 equal quarterly installments starting
from August 30, 2023.
Tranche 3
from June 28, 2023.
Tranche 4
from September 14, 2023.
Tranche 5
Tranche 6
from June 28, 2023.
Sanctioned
Limit
---------------- Rupees in ‘000’ ----------------
8 Askari Bank Limited - Term Finance 125,000 - 75,000 This loan has been fully repaid during the 3-Month KIBOR + 125 bps p.a, payable 1st Joint Pari Passu charge of Rs 667
year. quarterly in arrears, to be set on last business million over fixed assets of the Company
day before first draw down and then on inclusive of 25% margin as below:
immediately preceding day of each quarter. - Hypothecation charge over all present and
- Land and Building of Cement Unit
Phase II and additional bare land
measuring 30 Kanals adjacent to it.
- Personal Guarantee of Mr. Tariq Saeed Saigol
and Mr. Saeed Tariq Saigol (sponsoring
directors and key management personnel).
9 The Bank of Punjab - Demand Finance 374,339 - 299,471 This loan has been fully repaid during the 3-Month KIBOR + 125 bps p.a, payable 1st Joint Pari Passu charge of Rs. 7,903 million,
year. quarterly in arrears, to be set on the day of 1st with 25% margin, over all present and future
draw down and then on last working day of fixed assets of the Company and personal
preceding calendar quarter. guarantee of Mr. Tariq Sayeed Saigol and Mr.
10 National Bank of Pakistan - Demand 1,000,000 - 200,000 This loan has been fully repaid during the 3-Month KIBOR + 125 bps p.a, payable 1st Joint Pari Passu charge of Rs. 10,000
Finance year. quarterly in arrears, to be set on the date of million over fixed assets of the Company and
first disbursement and to be reset on the first personal guarantee of Mr. Tariq Sayeed Saigol
working day of each calendar quarter. and Mr. Sayeed Tariq Saigol (sponsoring
11 MCB Islamic Bank - Diminishing 500,000 - 166,667 This loan has been fully repaid during the 3-Month KIBOR + 70 bps p.a, payable 1st Joint Pari Passu charge of Rs. 666.67
Musharakah year. quarterly in arrears, to be set on the date of millions over all present and future fixed
first disbursement and subsequently at the assets of the Company and personal
beginning of each quarter. guarantee of Mr. Tariq Sayeed Saigol and Mr.
12 Allied Bank Limited- SBP refinance for 933,000 - 213,315 This loan has been fully repaid during the SBP rate + 50 bps to 100 bps p.a, payable 1st Joint Pari Passu charge over all fixed
Wages and Salaries year. quarterly in arrears. assets of the Company with 25% margin.
13 Pair Investment Company Limited - Term 300,000 - 75,000 This loan has been fully repaid during the 3 months KIBOR + 100 bps p.a, payable 1st Joint Pari Passu charge over present and
Finance year. quarterly, with the first payment falling due future fixed assets of the company with 25%
at the end of the 3rd month from the first margin.
disbursement date and subsequently every
three months thereafter.
14 Askari Bank Limited - TERF 756,000 448,448 586,433 13 equal quarterly installments starting SBP Rate + 200 bps p.a, payable quarterly in Ranking hypothecation charge of PKR 310
from August 17, 2023. arrears. million with 25% margin, over all present
and future fixed assets (excluding land and
building) of the Company (to be upgraded to
1st Joint Pari Passu charge).
Cushion available against existing registered
1st Joint Pari Passu charge of Rs 2,000 million,
to the extent of Rs. 890.493 million, over fixed
assets of the Company with 25% margin over
fixed assets of the Company as below:
- Hypothecation charge over all present and
adjacent to it.
217
218
Sanctioned
Limit
---------------- Rupees in ‘000’ ----------------
15 Bank of Punjab - Demand Finance 600,000 243,157 297,192 18 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable 1st Joint Pari Passu charge of Rs. 7,903 million
from September 14, 2023. quarterly in arrears, to be set on the day of 1st over all present and future fixed assets of
draw down and then on last working day of the Company with 25% margin and personal
preceding calendar quarter. guarantee of Mr. Tariq Sayeed Saigol and
Mr. Sayeed Tariq Saigol (sponsoring directors
and key management personnel).
16 National Bank of Pakistan - Demand 1,220,497 714,106 360,751 32 equal quarterly installments starting 3-Month KIBOR + 125 bps p.a, payable 1st Joint Pari Passu charge of Rs. 10,000
Finance from September 18, 2023. quarterly in arrears, to be reset on last working million over fixed assets of the Company and
day of preceding calendar quarter. personal guarantee of Mr. Tariq Sayeed Saigol
and Mr. Sayeed Tariq Saigol (sponsoring
17 National Bank of Pakistan - TERF 1,779,503 1,730,090 1,779,503 32 equal quarterly installments starting SBP rate + 150 bps p.a, payable quarterly in 1st Joint Pari Passu charge of Rs. 10,000
from September 18, 2023. arrears. million over fixed assets of the Company and
personal guarantee of Mr. Tariq Sayeed Saigol
18 Bank of Punjab - Demand Finance 2,500,000 2,222,753 1,965,331 32 equal quarterly installments starting 3-Month KIBOR + 90 bps p.a payable quarterly Cushion available against existing registered
from September 19, 2023. in arrears to be reset on last working day of 1st Joint Pari Passu charge of Rs 7,903
preceding calendar quarter. million, over fixed assets of the Company
inclusive of 25% margin and initial ranking
charge of Rs. 3,236.1 million with 25% margin,
over all present and future fixed assets of the
Company (upgraded to First Joint Pari Passu
charge).
19 Bank of Punjab - TERF 500,000 500,000 500,000 32 equal quarterly installments starting SBP Rate + 150 bps p.a payable quarterly in 1st Joint Pari Passu Charge of Rs 7,903 million
from September 19, 2023. arrears. over all present and future fixed assets of the
Company, with 25% margin.
20 MCB Bank Limited - LTFF 805,806 805,806 805,806 32 equal quarterly installments starting SBP LTFF Rate + 150 bps p.a, payable 1st Joint Pari Passu charge of 38,051 million
from September 18, 2023. quarterly in arrears. (MCB Share Rs 4,500 million) over all present
and future fixed assets of the Company.
21 MCB Bank Limited - Demand Finance 1,194,194 617,007 439,276 32 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a payable quarterly 1st Joint Pari Passu charge of 38,051 million
from September 18, 2023. in arrears to be reset on last working day of (MCB Share Rs 4,500 million) over all present
preceding calendar quarter. and future fixed assets of the Company.
22 Habib Bank Limited. - LTFF 560,705 560,705 560,705 20 equal quarterly installments starting SBP + 150 bps p.a, payable quarterly in 1st Joint Pari Passu charge of Rs. 4,000 million
Company including land i.e. 2097 Kanals and
9 Marlas, building, plant and machinery.
23 Habib Bank Limited - Term Finance 2,439,295 1,974,686 1,437,412 20 equal quarterly installments starting 3-Month KIBOR + 150 bps p.a, payable 1st Joint Pari Passu charge of Rs. 4,000 million
from September 25, 2023. quarterly in arrears, to be reset on last working over all present and future fixed assets of the
day of preceding calendar quarter. Company including land i.e. 2097 Kanals and
9 Marlas, building, plant and machinery.
Sanctioned
Limit
---------------- Rupees in ‘000’ ----------------
24 Allied Bank Limited -Term Finance 518,575 365,473 118,969 Repayment will made in following 3-Month KIBOR + 100 bps p.a, payable Joint Pari Passu charge of Rs 853.33 million,
tranches. quarterly in arrears, markup to be reset on last inclusive of 25% margin, over all present and
Tranche 1 working day of preceding calendar quarter. future plant and machinery of the Company.
Tranche 2
Tranche 3
from December 19, 2023.
25 Allied Bank Limited - LTFF 121,425 111,306 121,425 22 equal quarterly installments starting SBP + 100 bps p.a, payable quarterly in Joint Pari Passu charge of Rs 853.33 million,
from August 22, 2023. arrears. inclusive of 25% margin, over all present and
26 Faysal Bank Limited - Diminishing 2,000,000 1,428,036 986,594 21 equal quarterly installments starting 3-Month KIBOR + 150 bps p.a, payable Joint Pari Passu charge over all present &
Musharakah from August 31, 2023. quarterly in arrears. future fixed assets of the Company with 25%
margin and personal guarantee of Mr. Tariq
Saeed Saigol and Mr. Saeed Tariq Saigol
(sponsoring directors and key management
personnel).
27 MCB Islamic Bank Limited - Diminishing 350,000 331,528 350,000 Repayment will made in following tranches. SBP Rate + 150 bps p.a, payable quarterly in Joint Pari Passu charge over fixed assets of
Musharakah Tranche 1 arrears. Company including land, building and plant
10 equal quarterly installments starting & machinery with 25% margin.
from July 01, 2023.
Tranche 2
from June 30, 2023.
Tranche 3
from July 26,2023.
28 MCB Bank Limited - Demand Finance 500,000 333,278 480,816 16 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable Ranking charge of Rs. 667 million over present
from May 28, 2025. quarterly in arrears, to be set on last business and future fixed assets of the Company,
day before first draw down and then on inclusive of 25% margin.
immediately preceding day of each quarter.
219
Rs.
the
as
9):


1st Joint Pari Passu charge of Rs. 1,333.33

million over fixed assets of the Company
inclusive of 25% margin as below (same

below (same charged in serial no
Company inclusive of 25% margin
1,333.33 million over fixed assets of
2023 2022
1st Joint Pari Passu charge of

9. DEFERRED GRANT
Security
charged in serial no 9) :
Balance as at 01 July 9.1 & 9.2 971,334 99,566
Recognized during the year - 950,467
Amortization during the year (185,642) (78,699)
adjacent to it.
adjacent to it.
Balance as at 30 June 785,692 971,334
Current portion (179,766) (184,576

3-Month KIBOR + 75 bps p.a, payable quarterly
in arears, to be set on one business day before
1st drawdown and then on immediately
3-Month KIBOR + 75 bps p.a, payable quarterly

in arears, to be set on one business day before
1st drawdown and then on immediately
preceding day before start of each quarter.
preceding day before start of each quarter.

Non - current portion 605,926 786,758
Mark-up as per Agreement
9.1 This represents deferred grant related to loans obtained, during 2021, under "SBP refinance
scheme for payment of wages and salaries" and "SBP Temporary Economic Refinance Facility
Scheme" for setting of waste heat recovery plant. These facilities carry mark-up at the rate
specified by State Bank of Pakistan plus spread of 0.5% to 2% per annum. The loans were
initially measured at its fair value in accordance with IFRS 9 (Financial Instruments) using market
rates at SBP approval dates of each tranche. The difference between fair value of loan and loan
proceeds was recognized as deferred grant as per requirements of IAS 20 (Accounting for
Government Grants and Disclosure of Government Assistance), circular number 11 of 2020
issued by the Institute of Chartered Accountant of Pakistan and selected opinion issued in
Repayment will made in following

Remaining Tenor of Principal Repayments
November 2020 by the Institute of Chartered Accountants of Pakistan.
9.2 The Company has obtained loans amounting to Rs 2,727 million under "SBP Temporary
Economic Refinance Facility" and "SBP Financing Scheme for Renewable energy" for setting
from September 09, 2024
from November 04, 2023.
up of Waste Heat Recovery Plant, for import and installation of cement production line (Line -
from March 12, 2024.
IV) and for setting up Solar Energy Project. These facilities carry markup at the rate specified
by State Bank of Pakistan plus spread of 1.50% to 2% per annum. The loan has been initially
measured at its fair value in accordance with IFRS 9 (Financial Instruments) using market rates
Tranche 1
Tranche 2
tranches.
at SBP approval dates of each tranche. The difference between fair value of loan and loan
proceeds has been recognized as deferred grant as per requirements of IAS 20 (Accounting
for Government Grants and Disclosure of Government Assistance) and as per selected opinion
816,931
20,339,002
490,860
20,829,862
(971,334)
(2,619,800)
(490,860)
16,747,868
---------------- Rupees in ‘000’ ----------------
issued in November 2020 by the Institute of Chartered Accountants of Pakistan.

2022
2023 2022
816,931
1,000,000
18,618,430
743,232
19,361,662
(785,692)
(2,599,401)
(743,232)
15,233,337
2023

10. LONG TERM LOAN FROM SUBSIDIARY COMPANY
1,000,000
1,000,000
33,428,887
Long term loan 10.1 2,000,000 2,000,000

Sanctioned
Limit
10.1 This represents agreement dated June 01, 2019 for the conversion of outstanding balance
Impact of deferred government grant
payable into long term loan from Maple Leaf Power Limited, the Subsidiary Company, in lieu
Accrued mark up on long term loans
from financial institutions (principal
from financial institutions - secured

Amortized Cost of long term loans
Current portion of long term loans
of electricity purchased during the current and prior years to long term loan. On June 30, 2023,
Askari Bank Limited - Term Finance
Long term portion of loans from

Allied Bank Limited -Term Finance
addendum to agreement was signed. As per the addendum, Rs. 2,000 million which was
(accrued mark up portion)
payable from April 01, 2024 has been rescheduled and the total loan of Rs. 2,000 million is now
payable in eight equal quarterly instalments starting from October 01, 2025 . This loan carries
Lender
financial institutions
mark-up at 3 month KIBOR plus 1% per annum, payable quarterly in arears. The effective rate
portion) - secured
during the year ranges from 15.32% to 22.08% per annum (2022: 8.45% to 12.95%).
Less:
Total
29
30
220 221
2023 2022 2023 2022
(Rupees in thousand) (Rupees in thousand)
11. LIABILITY AGAINST RIGHT OF USE ASSET 13.1 Movement in deferred tax balances is as follows:
Liability against right of use asset 33,973 - At beginning of the year 5,656,499 3,889,907
Addition during the year 17,666 44,021 Recognized in statement of profit or loss:
Interest on lease liabilities 5,038 2,377 - Accelerated tax depreciation on fixed assets 3,701,691 925,223
Payments made during the year (14,611) (12,425) - Surplus on revaluation of fixed assets (261,144) (204,084)
Leases terminated during the year (401) - - Unused tax losses 495,654 1,016,378
- Employees' retirement benefits (6,636) 26,582
41,665 33,973 - Minimum tax (313,034) -
- Alternative corporate tax (736,422) (181,599)
Current portion of liability against right of use asset (10,257) (6,837) - Provision for expected credit loss (73,564) 68,929
31,408 27,136 2,806,545 1,651,429
Maturity analysis of liability against right of use asset is as follows: Recognized in surplus on revaluation of fixed assets
Less than one year 14,325 9,138 Effect of change in proportion of local and export sales 147,285 114,606
One to five years 26,498 19,715
More than five years 30,226 31,924 Recognized in other comprehensive income:
- Employees' retirement benefits (6,977) 557
71,049 60,777 - Investment at fair value through OCI 65,859 -
Future finance charge (29,384) (26,804)
8,669,211 5,656,499
Present value of liability against right of use asset 41,665 33,973
13.2 This represents deferred tax asset on unused tax losses amounting to Rs. 1,652 million (2022:
12. LONG TERM DEPOSITS Rs. 3,362 million) recognized on the basis of future expected taxable profits. As at June 30,
2023, unused tax losses represent unabsorbed depreciation which is available for adjustment
These represent deposits received from dealers and are being utilized by the Company in accordance for indefinite period in accordance with the provisions of Income Tax Ordinance, 2001.
with the terms of dealership agreements.
13.3 Deferred tax asset on minimum tax available for carry forward u/s 113 of the Income Tax
2023 2022 Ordinance, 2001 are recognised to the extent that the realisation of related tax benefits
Note (Rupees in thousand) through future taxable profits is probable. The Company has recognised deferred tax assets
13. DEFERRED TAXATION of Rs.493.792 million (2022: Rs. 180.029) in respect of minimum tax available for carry forward
u/s 113 of the Income Tax Ordinance, 2001, as sufficient tax profits would be available to set
Deferred tax liability on taxable temporary differences these off in the foreseeable future. Minimum tax amounting to Rs. 180.76 million and Rs. 313.03
arising in respect of: million will expire in year 2024 and 2026 respectively.
- Accelerated tax depreciation on fixed assets 9,849,033 6,147,342 13.4 Deferred tax asset on alternate corporate tax available for carry forward u/s 113(c) of the Income
- Surplus on revaluation of fixed assets 882,322 996,181 Tax Ordinance, 2001 are recognised to the extent that the realisation of related tax benefits
- Investment at FV - OCI 65,859 - through future taxable profits is probable. The Company has recognised deferred tax assets of
Rs. 1,013.692 million (2022: Rs. 277.999 million) in respect of alternate corporate tax available
10,797,214 7,143,523 for carry forward u/s 113(c) of the Income Tax Ordinance, 2001, as sufficient tax profits would
Deferred tax asset on deductible temporary differences be available to set these off in the foreseeable future. Alternate Corporate Tax amounting to Rs
arising in respect of: 90.11 million, Rs 277.03 million and Rs 646.55 million will expire in year 2031, 2032 and 2033
respectively.
- Provision against expected credit loss (89,719) (16,155)
- Unused tax losses 13.2 (479,209) (974,863) 14. RETENTION MONEY PAYABLE
- Minimum tax 13.3 (493,792) (180,758)
- Alternative corporate tax 13.4 (1,013,692) (277,270) This represented retention money payable to M/s Chengdu Design & Research Institute Of Building
- Employees' retirement benefits (51,591) (37,978) Materials Industry Co., Ltd amounting to CNY 38.41 million (equivalent to Rs. 1,535.635 million) against
line-IV after 18 months of last major shipment and remaining amount is payable to M/s Sinoma Energy
(2,128,003) (1,487,024) Conservation Ltd against line-IV WHRP amounting to CNY 5.43 million (equivalent to Rs. 217.353
million). This amount will be payable on issuance of certificate of performance test acceptance by the
13.1 8,669,211 5,656,499 Company.
222 223
2023 2022 15.1.3 Sensitivity analysis
Significant actuarial assumptions used to estimate the liability are discount rate and future
15. RETIREMENT BENEFITS
salary increases. If such assumptions had fluctuated by 100 bps with all other variables held
constant, the present value of the defined benefit obligation as at June 30, 2023 would have
Accumulated compensated absences 15.1 213,284 165,416
been as follows:
Gratuity 15.2 65,208 69,913
Compensated absences
278,492 235,329 Present value of defined
benefit obligation
15.1 Accumulated compensated absences Increase in Decrease in
assumption assumption
The actuarial valuation of the Company’s accumulated compensated absences was conducted
on June 30, 2023 using projected unit credit method. Details of obligation for accumulated
compensated absences is as follows:
Discount rate + 100 bps 194,020 235,773
15.1.1 Movement in the present value of defined benefit obligations is as follows:
Future salary increase + 100 bps 235,427 194,021
2023 2022
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
Present value of defined benefit obligations at
benefit obligation reported in the unconsolidated statement of financial position.
beginning of the year 165,416 137,775
Current service cost for the year 11,103 11,110
15.1.4 At June 30, 2023, the average duration of the defined benefit obligation was 10 years.
Interest cost for the year 20,729 12,990
Remeasurements:
15.1.5 Actuarial assumptions
Actuarial (gains) / losses from changes in
demographic assumptions - - The following are the principal actuarial assumptions as at June 30:
financial assumptions - - 2023 2022
Experience adjustments 33,974 19,283 (Percentage)
Benefits paid during the year (17,938) (15,742) Discount rate used for interest cost 13.25% 10.00%
Discount rate used for year end obligations 16.25% 13.25%
Present value of defined benefit obligation 213,284 165,416 Expected rate of growth per annum in future salaries 15.25% 12.25%
Expected mortality rate SLIC 2001 - 2005
15.1.2 Charge for the year Setback 1 Year
Retirement assumption 60 Years 60 Years
In statement of profit or loss
15.2 Gratuity
Current service cost for the year 11,103 11,110 The latest actuarial valuation of the Company’s defined benefit plan, was conducted on June 30,
Interest cost for the year 20,729 12,990 2023 using projected unit credit method. Detail of obligation for defined benefit plan is as follows:
Actuarial losses on present value of
defined benefit obligations 33,974 19,283 The amounts recognized in the unconsolidated statement of financial position are as follows:
65,806 43,383 2023 2022

Present value of defined benefit obligation 15.2.1 162,625 153,729

Less: Fair value of plan assets 15.2.2 (99,816) (83,816)
Add: Payable to ex-employees 2,399 -
Net liability at end of the year 65,208 69,913
Net liability at beginning of the year 69,913 90,491

Charge to statement of profit or loss for the year 15.2.3 12,405 13,957
Charge to other comprehensive income
for the year 15.2.3 18,830 (1,726)
Contribution made during the year 15.2.4 (35,940) (27,577)
Gratuity due but not paid - (5,232)
224 225
15.2.1 Movement in the present value of defined benefit obligations is as follows: 15.2.3 Charge for the year
2023 2022 2023 2022

Note (Rupees in thousand) (Rupees in thousand)
In unconsolidated statement of profit or loss
Present value of defined benefit obligations at
beginning of the year 153,729 168,575 Current service cost for the year 6,029 6,547
Current service cost for the year 6,029 6,547 Interest cost for the year 17,829 15,218
Interest cost for the year 17,829 15,218 Expected return on plan assets for the year (11,453) (7,808)
Benefits due but not paid (2,399) (5,232)
Remeasurements: - - 12,405 13,957
demographic assumptions - - In unconsolidated statement of comprehensive income
financial assumptions 183 195 Actuarial losses / (gains) on retirement benefits - net 18,830 (1,726)
Experience adjustments 23,194 (3,996)
Benefits paid during the year (35,940) (27,577) 31,235 12,231
Present value of defined benefit obligation at Actuarial assumptions

end of the year 162,625 153,729 2023 2022
Percentage
15.2.2 Movement in the fair value of plan assets is The following are the principal actuarial assumptions at 30 June:
as follows:
Fair value of plan assets at beginning of the year 83,816 78,084 Discount rate used for interest cost in profit or loss 13.25% 10.00%
Contributions made during the year 41,171 27,577 Expected rate of growth per annum in future salaries 15.25% 12.25%
Expected return on plan assets for the year 11,453 7,808 Expected mortality rate SLIC 2001 - 2005
Actuarial loss / (gain) on plan assets 4,547 (2,076) Setback 1 Year
Benefits paid during the year 15.2.4 (41,171) (27,577) Retirement assumptions 60 Years 60 Years
Fair value of plan assets at end of the year 99,816 83,816 15.2.4 This also includes payments made to employees with respect to gratuity due but not paid in 2022
amounting to Rs 5.23 million.
Fair value of plan assets are as follows:
15.3 The Company expects to charge Rs. 12.405 million to unconsolidated statement of profit or loss
NAFA Government Securities Liquid Fund 98,859 23,743 on account of defined benefit plan in the year ending June 30, 2023.
Special saving certificates - 58,560
Cash at bank 957 1,513 15.4 Sensitivity analysis
Significant actuarial assumptions used to estimate the liability are discount rate and future salary
99,816 83,816 increases. If such assumptions had fluctuated by 100 bps with all other variables held constant,
the present value of the defined benefit obligation as at June 30, 2023 would have been as follows:
2023 2022 Gratuity
Percentage
Present value of defined
Plan assets comprise of:
benefit obligation
Equity 99.04% 28.32%
Special saving certificates 0.00% 69.87% Increase in Decrease in
Cash at bank 0.96% 1.81% assumption assumption
100.00% 100.00%
benefit obligation reported in the statement of financial position.
15.5 At June 30, 2023, the average duration of the defined benefit obligation was 4 years.
226 227
15.6 Compensated absence and gratuity charge to profit or 2023 2022
loss for the year has been allocated as follows: Note (Rupees in thousand)
2023 2022
16.3 Payable to Workers’ Profit Participation Fund
At beginning of the year 1,613,792 1,325,693
Cost of sales 36 41,000 34,380
Administrative expenses 37 22,680 13,731
Allocation for the year 39 56,319 376,250
Distribution expenses 38 14,531 9,229
Less: Paid during the year (106,080) (88,151)
78,211 57,340
At end of the year 1,564,031 1,613,792
16. TRADE AND OTHER PAYABLES
16.4 Workers’ Welfare Fund
Trade creditors 3,390,287 3,651,546
At the beginning of the year 155,344 86,043
Due to related party 16.1 1,871,865 132,595
Bills payable - secured 1,414,069 324,166
Charge for the year 39 189,936 150,500
Accrued liabilities 1,837,690 1,341,074
Prior year charge - (58,014)
Contract liabilities 16.2 445,838 345,495
Payable to Workers’ Profit Participation Fund 16.3 1,564,031 1,613,792
189,936 92,486
Payable to Workers’ Welfare Fund 16.4 280,436 155,344
Payable to Provident Fund Trust - 17,786
Paid during the year (64,844) (23,185)
10,804,216 7,581,798
At end of the year 280,436 155,344
Payable to Government on account of:
Federal Excise duty payable 374,455 511,547
Sales Tax payable - net 770,490 17,378
16.5 This represents retention money withheld from contractors and are repayable after satisfactory
Royalty and Excise Duty payable 35,059 80,435
completion of contracts.
Other Taxes payable 87,253 260,602
16.6 This represents security deposits received from distributors and contractors of the Company.
1,267,257 869,962
Distributors and contractors have given the Company a right to utilize deposits in ordinary
course of business.
Contractors’ retention money 16.5 359,096 554,577
2023 2022
Security deposits repayable on demand 16.6 76,723 75,214
Payable against redemption of preference shares 1,005 1,010
Other payables 9,883 34,853
17. MARK-UP ACCRUED ON BORROWINGS
446,707 665,654
Accrued mark-up on:
- Long term loans 17.1 743,232 490,860
12,518,180 9,117,414
- Long term loan from Subsidiary Company 10 115,084 32,286
- Short term borrowings 17.2 21,723 141,976
16.1 Due to related party
880,039 665,122
Due to Subsidiary company 1,871,865 132,595
17.1 Accrued mark-up on all loans includes Rs. 62.011 million (2022: Rs. 60.547 million) related to
16.2 This represents advances received from customers for future sale of goods. During the year,
an arrangement permissible under Shariah. Remaining mark up pertains to the loans from
the Company has recognized revenue amounting to Rs. 219.027 million, out of the contract
conventional banks.
liability as at July 01, 2022.
17.2 Accrued mark-up on short term loans includes Rs. nil (2022: Rs. 62.331 million) related to
an arrangement permissible under Shariah. Remaining mark up pertains to the loans from
conventional banks.
228 229
2023 2022 The Honourable Lahore High Court, upon the Company’s appeal, vide its order dated November
Note (Rupees in thousand) 06, 2001 has decided the matter in favour of the Company; however, the Collector of Customs
18. SHORT TERM BORROWINGS has preferred a petition before the Honourable Sindh High Court, which is pending adjudication.
No provision has been made in these unconsolidated financial statements in respect of the
Banking and financial institutions: above stated amount as the management and the Company’s legal advisor are confident that
- Cash finance and others facilities availed 18.1 - 808,521 the ultimate outcome of this case will be in favour of the Company.
- Running finance 18.2 - 1,396,990
- Islamic mode of financing 18.3 - 1,366,057 19.1.3 A show cause notice was issued to the Company on December 04, 1999 and demand was
Temporary bank overdrafts - unsecured 18.4 - 505 raised by the Central Board of Revenue (now the Federal Board of Revenue) for payment
of duties and taxes on the plant and machinery imported by the Company (pursuant to the
- 3,572,073 exemption granted in terms of SRO 484(I)/92 allegedly on the ground that the plant could be
locally manufactured and was therefore not exempt). A total demand of Rs.1,386.72 million
18.1 The Company has un-availed cash finance and other funded facilities aggregating to Rs. 2,000 was raised by the Central Board of Revenue out of which an amount of Rs. 449.328 million
million (2022: Rs.1,938 million) at the year end and un-availed facilities for opening letters of was deposited by the Company (initially the Company deposited Rs. 269.328 million and
credit / guarantee aggregating to Rs. 8,685 million (2022: Rs. 7,935 million) at the year end. subsequently deposited further amount of Rs. 180.00 million). Initially, the matter was decided
in favour of the Company as per the judgment of the Lahore High Court in writ petition no.
The cash finance and other facilities carry mark-up at the rates ranging from 3.00% to 22.70% 6794/2000. Against the aforesaid judgment of Lahore High Court, the Customs Department
(2022: 3.00% to 21.00% ) per annum payable quarterly in arrears. had filed appeal before the Supreme Court of Pakistan which was decided by the Honourable
Supreme Court vide judgment dated December 21, 2011 with the direction to file reply to the
18.2 The Company has un-availed running finance funded facilities aggregating to Rs. 950 million Show Cause Notice before the Collector of Customs, Faisalabad.
(2022: Rs. 448 million) at the year end. These are secured against same securities as mentioned
in note 18.1 above. The Company has filed its reply before the Collector of Customs, Faisalabad who decided
the same against the Company vide order no. 6/2014 dated July 09, 2014. The said order was
The running finance carries mark-up at the rates ranging from 14.80% to 23.58% (2022: 7.92% challenged by the Company by way of filing of appeal no. 172/LB/2014 before the Customs
to 15.18%) per annum, payable quarterly in arrears. Appellate Tribunal, Lahore who vide Judgment dated August 21, 2019 has granted partial relief
to the Company with direction to the Customs Department to recalculate the customs duty
18.3 The Company has un-availed Islamic financing facilities aggregating to Rs. 2,000 million (2022: in accordance with the list communicated by the Engineering Development Board vide letter
601million) at the year end. dated June 21, 2006.
The Islamic financing facilities carried profit expense at : 8.05% to 11.26% per annum payable However, the Collector of Customs instead of making fresh calculations, through a demand
in arrears during 2022. notice CA-1946/2000(Pt-I)/8169 dated October 23, 2019 restored the original demand raised
by the earlier order no. 06/2014 and directed the Company to pay the amount of Rs. 933.81
18.4 This represents temporary overdraft in the preceding financial year due to cheques issued by million within a period of seven days. The said demand of tax was challenged by the Company
the Company at the statement of financial position date June 30, 2022. before the Honourable Lahore High Court, wherein stay against recovery was granted to it by
the Honourable Lahore High Court vide order dated November 04, 2019. This matter is still
19. CONTINGENCIES AND COMMITMENTS pending before the Honourable Lahore High Court, Lahore and next date of hearing is yet to
be fixed by the office of the High Court. No provision has been made in these unconsolidated
19.1 Contingencies financial statements in respect of the above stated amount as the management and the legal
advisor of the Company are confident that the ultimate outcome of this case will be in favour of
19.1.1 The Company filed writ petitions before the Honourable Lahore High Court against the legality the Company.
of judgment passed by the Customs, Excise and Sales Tax Appellate Tribunal in 2004 whereby
the Company was held liable on account of wrongful adjustment of input sales tax on raw 19.1.4 The Company has filed an appeal before the Honourable Supreme Court of Pakistan against
materials. The amount involved pending adjudication before the Honourable Lahore High the judgment of the Division Bench of the Honourable High Court of Sindh at Karachi. The
Court is Rs.10.01 million out of which Rs. 3 million had already been paid during previous years. Division Bench, by judgment dated September 15, 2008, has partly accepted the appeal
Lahore High Court remanded the case back to Appellate Tribunal for Decision afresh. However, by declaring that the levy and collection of infrastructure cess / fee prior to December 28,
hearing of the appeals by the Appellate Tribunal is yet to be fixed. No further provision has been 2006 was illegal and ultra vires and after December 28, 2006, it was legal and the same was
made in these unconsolidated financial statements in respect of the matter as the management collected by the Excise Department in accordance with the law. The appeal has been filed
and the Company’s legal advisor are confident that the ultimate outcome of this case will be in against the declaration that after December 28, 2006, the Excise Department has collected the
favour of the Company. 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
19.1.2 The Company has filed an appeal before the Customs, Central Excise and Sales Tax Appellate Honourable Supreme Court unconsolidated both the appeals and were set aside. Thereafter,
Tribunal, Karachi against the order of the Deputy Collector Customs whereby the refund claim law has been challenged in constitution petition in the Honourable Sindh High Court Karachi.
of the Company amounting to Rs. 12.35 million was rejected and the Company was held liable Stay has been granted by the Honourable High Court on May 31, 2011 on payment of 50% of
to pay an amount of Rs. 37.05 million by way of 10% customs duty allegedly leviable in terms the cess to the Excise Department and on furnishing of bank guarantee for remaining 50% to
of SRO 584(I)/95 and 585(I)/95 dated July 01, 1995. The impugned demand was raised by them. The matter is pending adjudication before the Honourable court, till that time, the stay
the department on the alleged ground that the Company was not entitled to exemption from order remains in effect.
payment of customs duty and sales tax in terms of SRO 279(I)/94 dated April 02, 1994.
230 231
19.1.5 Competition Commission of Pakistan, vide order dated August 27 ,2009, has imposed penalty Following the directions of the Honourable Lahore High Court, the company joined the
on twenty cement factories of Pakistan at the rate of 7.5% of the turnover value. The Commission audit proceedings by responding to issues arising out of audit reports Subsequently, the tax
has imposed penalty amounting to Rs. 586.19 million on the Company. The Commission has authorities issued show cause notices under section 11 of the Act dated May 31, 2021, for the
alleged that provisions of section 4(1) of the Competition Commission Ordinance, 2007 have subject tax periods which are yet to be responded to. Since the matter is pending before the
been violated. However, after the abeyance of Honourable Islamabad High Court pursuant to Honourable Lahore High Court, which has barred the tax authorities from passing any final
the judgment of Honourable Supreme Court of Pakistan dated July 31, 2009, the titled petition order till the disposal of writ petitions.
has become infructuous and the Company has filed a writ petition no. 15618/2009 before the
Honourable Lahore High Court. No provision has been made in these unconsolidated financial 19.1.11 The Learned Additional Commissioner vide order no. ENF-III.50.2017 dated March 22, 2018
statements as the management and the Company’s legal advisor are confident that the ultimate raised demand of Rs. 256 million against the Company, related to tax period from July 2015
outcome of this case will be in favour of the Company. to March 2017 on alleged non-deduction of withholding tax on services received by the
Company. Being aggrieved, the Company filed an appeal before the Commissioner (Appeals),
19.1.6 The Additional Collector, Karachi has issued show cause notice alleging therein that the Punjab Revenue Authority. The Company also challenged the vires of Rule 6 of Punjab Sales
Company has wrongly claimed the benefits of SRO No. 575(I)/2006 dated June 05, 2006 on Tax on Services (Withholding) Rules, 2002 before Honourable Lahore High Court (LHC)
the import of pre-fabricated buildings structure. Consequently, the Company is liable to pay through constitutional petition no. 203460/2018. The Honourable Court issued notice to the
Government dues amounting to Rs. 5.55 million. The Company has submitted reply to the department and suspended proceedings before the first appellate authority vide order dated
show cause notice and currently proceedings are pending before the Additional Collector. No 23 May 2018. The writ petition is pending adjudication. The Company and the tax/legal advisor
provision has been made in these unconsolidated financial statements as the management of the Company are expecting favourable outcome of the case. Therefore, no provision has
and the Company’s legal advisor are confident that the ultimate outcome of this case will be in been booked in these unconsolidated financial statements.
favour of the Company.
19.1.12 The Company was selected for audit under section 42B of Sales tax for tax period July 2017
19.1.7 The customs department has filed an appeal against the judgment dated May 19, 2009, passed to June 2018 intimated by letter dated December 8, 2020. The DCIR finalized the audit and
in favour of the Company pursuant to which the Company is not liable to pay custom duty created a demand of Rs. 690.52 million along with default surcharge and penalty, vide order no.
amounting to Rs. 0.81 million relating to import of some machinery vide L/C No. 0176-01-46- 02 dated October 20, 2021. Being aggrieved, the Company preferred an appeal before CIR(A).
518-1201 in terms of SRO 484(1)/92 dated May 14, 1992, and SRO 978(1)/95 dated October 04, The appeal was disposed off by CIR(A) vide appellate order no. 12 dated February 10, 2022 and
1995. The appeal is pending before the Honourable Lahore High Court. No provision has been entire amount of Federal Excise Duty along with penalty and default surcharge was annulled
made in these unconsolidated financial statements as the management and the Company’s and the matter was remanded back to the taxation officer. Being aggrieved, the Company
legal advisor are confident that the ultimate outcome of this case will be in favour of the preferred an appeal before the ATIR which is pending adjudication. However, the management
Company. and the tax advisor of the Company are hopeful of favourable outcome of the case, therefore,
no provision has been incorporated in these unconsolidated financial statements.
19.1.8 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 19.1.13 The Company received show cause notice, dated April 17, 2022 as per which it was alleged that
which the Company has filed writ petition against Government of Punjab via writ petition No. the Company’s claim of input sales tax amounting to Rs 85.98 million, for the tax periods January
1008/2014 to challenge the basis of Rules. The Honourable Lahore High Court dismissed the 2017 to August 2019, was illegal. The Company responded to the notice vide letter dated April
petition and remanded the case back to the department since the matter was being reviewed 25, 2022. The proceedings were concluded by the DCIR and demand of Rs 85.98 million along
by the relevant authority. Management and the Company’s legal advisor are confident that the with default surcharge and penalty was raised by DCIR vide assessment order dated May
ultimate outcome of this case will be in favour of the Company. 31, 2022, passed under section 11 of the Sales Tax Act 1990. Being aggrieved, the Company
preferred an appeal before the CIR(A), which is pending adjudication. The management of
19.1.9 The FBR selected the company’s case for audit of its sales tax affairs for the tax periods from the Company is hopeful of favourable outcome of the case, therefore, no provision has been
July 2017 through June 2018 through computerized balloting which was intimated through incorporated in these unconsolidated financial statements.
notice dated February 10, 2021 issued by the office of the CIR. Subsequently, the DCIR issued
audit report and show cause notice dated March 8, 2021 and March 17, 2021 respectively. The 19.1.14 The Company received show cause notice dated April 7, 2022 as per which it was alleged that
proceedings were finalized through order dated March 31, 2021 through which an aggregate the Company’s claim of input sales tax, amounting to Rs 620.98 million, for the tax periods July
sales tax demand of Rs 1,399.89 million was created against the company. 2019 to November 2021 was illegal. The Company responded to the notice vide letter dated
March 25, 2022. The proceedings were concluded by the DCIR and demand of Rs 580.06 million
The company preferred an appeal against the above referred order which was disposed of by along with default surcharge and penalty was raised by DCIR vide assessment order dated May
the CIR vide appellate order dated July 15, 2021. Through such appellate order, majority of the 31, 2022 passed under section 11 of the Sales Tax Act 1990. Being aggrieved, the Company
issues which were pressed in appeal were settled in favour of the company. Regarding the preferred an appeal before the CIR(A), which is pending adjudication. The management of
issues decided against the company, the company is in the process of preferring an appeal the Company is hopeful of favourable outcome of the case, therefore, no provision has been
before the ATIR and on the basis of evidence shared by the company, we consider that the recorded in these unconsolidated financial statements.
company is likely to obtain relief from the appellate authorities.
19.1.15 The Company received show cause notice, dated April 26, 2021 in which it was confronted
19.1.10 Through notices dated March 3, 2021, the CIR selected company’s case for audit of its sales that the Company has disposed of its fixed assets during the tax periods July 2015 to June
tax affairs for tax periods from July 2015 to June 2017 and July 2018 to June 2020. The company 2017 without charging sales tax, aggregating to Rs 42.76 million. The Company responded to
challenged the vires of selection by the CIR before the Honourable Lahore High Court, and the notice vide letter dated May 7, 2021. The proceedings were concluded and the DCIR vide
the Honourable Lahore High Court, vide interim order dated March 30, 2021, directed that the assessment dated August 23, 2021 passed under section 11 of the Sales Tax Act 1990 raised
audit proceedings shall continue, however, no final order shall be passed till the disposal of writ sales tax demand amounting to Rs. 42.76 million along with default surcharge and penalty. Being
petition. aggrieved, the Company preferred an appeal before the CIR(A), which was disposed of by the
CIR(A) vide appellate order dated February 10, 2022. Through such appellate order, entire sales
232 233
234
- coal
statements.
19.2.1 In respect of:

19.2 Commitments
Operating fixed assets

- capital expenditure
Capital work in progress - at cost

20. PROPERTY, PLANT AND EQUIPMENT
Major spare parts and stand-by equipments

in the unconsolidated financial statements.
- irrevocable letters of credit for spare parts

booked in these unconsolidated financial statements.
20.3
20.2
20.1
Note
2023
2023
62,354,608
238,239
1,676,796
60,439,573
5,650,630
1,992,761
400,478
3,257,391
million) in favour of Sui Northern Gas Pipeline Limited and Government Institutions.
2022
2022
amounting to Rs. 1,000 million (2022: Rs. 1,500 million) available to the Subsidiary Company.
7,993,022
1,972,000
397,877
5,623,145
56,784,840
280,655
15,352,800
41,151,385
19.2.3 Corporate guarantee given by the Company to the financial institutions related to credit facilities
19.2.2 Guarantees given by banks on behalf of the Company are Rs. 1,101.35 million (2022: 1,037.04
a favourable outcome in most of the above cases and adequate provisions have been created
Based on the advice of the taxation / legal advisors of the Company, the management expects
19.1.16 Contingencies relating to tax matters are disclosed in note 33 to these unconsolidated financial
management is expecting favourable outcome of the case, therefore, no provision has been
record. No further correspondence has been received from tax department in this regard. The
been remanded back to the taxation officer to decide the matter after examination of underlying
tax demand on account of disposal of remaining fixed assets, amounting to Rs 23 million, has
and accordingly, the demand on account of these disposals has been deleted whereas sales
held that the disposal of land, buildings and vehicles did not warrant the imposition of sales tax
tax demand along with penalty and default surcharge has been annulled by the CIR(A). It was
20.1 Operating fixed assets

Cost / Revalued amount Depreciation
Net book
At At At At
Disposals For the value at
July 01, Additions June 30, Rate July 01, Disposals June 30,
year June 30,
2022 2023 2022 2023 2023
------------------------ Rupees in thousand ------------------------ Percentage ------------------------------------- Rupees in thousand -----------------------------------
Owned
Freehold land
- cost 822,154 2,450 - 824,604 - - - - - 824,604
- surplus on revaluation 369,883 - - 369,883 - - - - - 369,883
1,192,037 2,450 - 1,194,487 - - - - 1,194,487
Buildings on freehold land

- cost 14,057,169 5,722,076 - 19,779,245 5 - 20 4,412,727 681,929 - 5,094,656 14,684,589
- surplus on revaluation 343,724 - - 343,724 5 - 20 205,360 28,323 - 233,683 110,041
14,400,893 5,722,076 - 20,122,969 4,618,087 710,252 - 5,328,339 14,794,630
Roads, bridges and railway sidings

- cost 457,157 11,895 - 469,052 5 - 10 166,663 30,403 - 197,066 271,986
- surplus on revaluation 4,429 - - 4,429 5 - 10 4,321 24 - 4,345 84
461,586 11,895 - 473,481 170,984 30,427 - 201,411 272,070
Plant and machinery

- cost 48,925,183 16,580,806 (42,771) 65,463,218 5 - 20 22,349,438 1,953,361 (16,368) 24,286,431 41,176,787
- surplus on revaluation 7,479,329 - (1,540) 7,477,789 5 - 20 4,531,523 675,885 (929) 5,206,479 2,271,310
56,404,512 16,580,806 (44,311) 72,941,007 26,880,961 2,629,246 (17,297) 29,492,910 43,448,097
Furniture, fixtures and equipment 524,964 58,403 (476) 582,891 10 - 30 418,348 27,560 (310) 445,598 137,293
Quarry Equipment 183,104 1,900 - 185,004 20 172,735 2,207 - 174,942 10,062
Vehicles 413,595 411,614 (66,532) 758,677 20 204,288 61,536 (46,969) 218,855 539,822
Share of Joint assets 6,000 - - 6,000 10 6,000 - - 6,000 -
1,127,663 471,917 (67,008) 1,532,572 801,371 91,303 (47,279) 845,395 687,177
Right of use asset

- leasehold land 29,001 566 - 29,567 5.88 - 50 1,113 2,287 - 3,400 26,167
- leasehold building 15,020 17,100 (401) 31,719 33 6,810 8,365 (401) 14,774 16,945
44,021 17,666 (401) 61,286 ` 7,923 10,652 (401) 18,174 43,112
Total 73,630,712 22,806,810 (111,720) 96,325,802 32,479,326 3,471,880 (64,977) 35,886,229 60,439,573
235
236
Net book
At At At At
year June 30,
2021 2022 2021 2022 2022
Owned
Freehold land
- cost 822,154 - - 822,154 - - - - - 822,154
1,192,037 - - 1,192,037 - - - - 1,192,037

- cost 13,474,727 618,970 (36,528) 14,057,169 5 - 10 3,834,667 611,441 (33,381) 4,412,727 9,644,442
- surplus on revaluation 343,968 - (244) 343,724 5 - 10 175,298 30,217 (155) 205,360 138,364
13,818,695 618,970 (36,772) 14,400,893 4,009,965 641,658 (33,536) 4,618,087 9,782,806

- cost 455,040 2,117 - 457,157 5 - 10 133,126 33,537 - 166,663 290,494
- surplus on revaluation 4,429 - - 4,429 5 - 10 4,312 9 - 4,321 108
459,469 2,117 - 461,586 137,438 33,546 - 170,984 290,602
Plant and machinery

- cost 46,612,762 2,375,603 (63,182) 48,925,183 5 - 20 20,595,076 1,800,156 (45,794) 22,349,438 26,575,745
- surplus on revaluation 7,485,566 - (6,237) 7,479,329 5 - 20 3,848,588 686,490 (3,554) 4,531,524 2,947,805
54,098,328 2,375,603 (69,419) 56,404,512 24,443,664 2,486,646 (49,348) 26,880,962 29,523,550
Furniture, fixtures and equipment 499,440 29,394 (3,870) 524,964 10 - 30 399,180 22,587 (3,419) 418,348 106,616
Quarry equipment 183,104 - - 183,104 20 170,138 2,597 - 172,735 10,369
Vehicles 346,292 93,190 (25,887) 413,595 20 183,678 36,630 (16,020) 204,288 209,307
Share of joint assets 6,000 - - 6,000 10 5,998 2 - 6,000 -
1,034,836 122,584 (29,757) 1,127,663 758,994 61,816 (19,439) 801,371 326,292
Right of use asset

- leasehold land - 29,001 - 29,001 5.88 - 50 - 1,113 - 1,113 27,888
- leasehold building - 15,020 - 15,020 33 - 6,810 - 6,810 8,210
- 44,021 - 44,021 - 7,923 - 7,923 36,098
70,603,365 3,163,295 (135,948) 73,630,712 29,350,061 3,231,589 (102,323) 32,479,327 41,151,385
20.1.1 Depreciation charge for the year has been allocated as follows:
2023 2022
Cost of sales 36 3,378,526 3,163,345

3,471,880 3,231,589
20.1.2 Disposal of property, plant and equipment

Particulars Accumulated Net book Sale Gain /
Cost Mode of disposal Particulars of purchaser
depreciation value value (loss)
----------------------------- Rupees in thousand -----------------------------
Plant and Machinery
Feed Screw Conveyor Complete, Sketches No. 20 & 21 2,478 1,657 821 212 (609) Auction M/S.Muhammad Hayat Contractor
Centre Cone Of Cost Steel 760 344 264 80 1,078 998 Auction M/S.Muhammad Hayat Contractor
Tyre Dwg.No. N6222-0402 For White Cement Kiln 781 593 188 6,000 5,812 Return to Store Return to Store
Shell Kiln Drg.No. 6222-04 2,907 2,208 699 7,000 6,301 Return to Store Return to Store
Encoder , Model : Rhi 503 , Power Supply: 5 Vdc 102 78 24 63 39 Auction M/S.Muhammad Hayat Contractor
Load Cell ( For Scd Pfister Coal Bin ),Type: V335K 39 30 9 24 15 Auction M/S.Muhammad Hayat Contractor
Flow Control Switch, Type: Mk301-F21-St31-1-15 50 44 6 31 25 Auction M/S.Muhammad Hayat Contractor
Clamp For Wear Segment, Spl No : 50008582 1,871 283 1,588 1,142 (446) Auction M/S Ghulam Akbar
Pull Rod, Drg. # 2.229334,Pn:839335,Spl # 50008582 2,045 313 1,732 10 (1,722) Return to Store Return to Store
Incremental Encoder, Type : Ma324-6-1024-Al2 345 60 285 7 (278) Return to Store Return to Store
Slip Ring Assembly For 4600Kw Motor, For Line 3 1,605 281 1,324 300 (1,024) Return to Store Return to Store
Controller Intecont Tursus Type Vbw 20650 111 98 13 68 55 Auction M/S.Muhammad Hayat Contractor
Sealing Plate Upper Specification: (Type: Drw 4.12) 919 827 92 25 (67) Return to Store Return to Store
Sealing Plate Lower Specification: (Type: Drw 4.14) 1,066 959 107 25 (82) Return to Store Return to Store
Bearing Housing Sofn-230 Bl 739 665 74 200 126 Return to Store Return to Store
Kiln Burner For 500Tpd(Clinker) 214 68 146 221 75 Return to Store Return to Store
Ep Unit Power Control For Gac-Ix B Of Nigata Engine 202 181 21 125 104 Auction M/S.Muhammad Hayat Contractor
Gear Box Assembly Type - Zk-128-K4-200 433 261 172 100 (72) Return to Store Return to Store
Turbine/Generator - WHRP 525 234 291 438 147 Auction M/S Ghulam Akbar
Centrifugal Pump Cap+170M3/H At6Bar 697 628 69 91 22 Auction M/S.Muhammad Hayat Contractor
Fuzes Detonating For Is Limiter 3,102 1,588 1,514 - (1,514) Return to Store Return to Store
Fuzes Detonating For Is Limiter 1,034 751 283 - (283) Return to Store Return to Store
Gas Analyzer Uras26, Art. No.: 04526644/1010 1,086 977 109 393 284 Return to Store Return to Store
Profibus Card Ptq Module, Type: Ptq-Pdpmv1 209 188 21 104 83 Return to Store Return to Store
Auma Actuator ,Type: Sa 10.1-F10 , Comm: 691153 1,204 1,084 120 88 (32) Return to Store Return to Store
P&M Packing Plant 582 107 475 359 (116) Auction M/S.Muhammad Hayat Contractor
Tyre Dwg.No. N6222-0401 For White Cement Kiln 7,680 2,371 5,309 4,500 (809) Return to Store Return to Store
Solar Pv Modules High Efficiency 540-660 Watt 11,254 419 10,835 11,254 419 Return to Store Return to Store
Auma Actuator, G 80.3, Com No:13007302,Am 01.1 688 79 609 688 79 Return to Store Return to Store
Total 44,312 17,296 27,016 34,546 7,530

237
238
Particulars
Accumulated Net book Sale Gain /

Vehicles
Honda Civic 2,936 1,608 1,328 3,600 2,272 Buy Back Nauman Ahmed
Suzuki Cultus 1,040 908 132 750 618 Buy Back Aamir Shahbaza Maseh
Suzuki Cultus 1,063 863 200 700 500 Buy Back Sajid Chauhdry
Suzuki Cultus 1,063 857 206 750 544 Buy Back Manzar Mehdi
Suzuki Cultus 1,063 858 205 700 495 Buy Back Muhammad Ashraf
Suzuki Cultus 1,063 863 200 700 500 Buy Back Waqas Chaudhry
Suzuki Cultus 1,063 862 201 710 509 Buy Back Imran Butt
Suzuki Cultus 1,063 831 232 825 593 Buy Back Muzaffar Hussain
Suzuki Cultus 1,124 870 254 760 506 Buy Back Babar Iqbal
Suzuki Cultus 1,124 864 260 730 470 Buy Back Mehmood Ali
Suzuki Cultus 1,124 861 263 780 517 Buy Back Hassan Raza
Suzuki Cultus 1,119 835 284 780 496 Buy Back Umair Saeed
Suzuki Cultus 1,124 841 283 780 497 Buy Back Umair Ikram
Suzuki Cultus 1,124 837 287 740 453 Buy Back Mutnazzam Nazir
Suzuki Cultus 1,124 839 285 770 485 Buy Back Rashid Khan
Suzuki Cultus 1,154 854 300 730 430 Buy Back Younas Bhatti
Suzuki Cultus 1,152 846 306 750 444 Buy Back Inamulah Khan
Suzuki Cultus 1,423 980 443 1,100 657 Buy Back Moeen Hasan Kazmi
Suzuki Cultus 1,419 975 444 1,200 756 Buy Back Saleh Muhammad
Suzuki Cultus 1,419 981 438 1,281 843 Buy Back Ali Haider
Suzuki Cultus 1,152 857 295 740 445 Buy Back Imran Malik
Toyota Yaris 2,815 592 2,223 2,250 27 Buy Back Miss Amna Nauman
Suzuki Cultus 1,419 967 452 1,350 898 Buy Back Ijaz Ahmad
Suzuki Cultus 1,063 876 187 730 543 Buy Back Usman Ghani
Yamaha Bikes 60 57 3 25 22 Auction Niaz ur Rehman
Honda Bikes 60 60 - 8 8 Auction M/S. Muhammad Idrees
C/F 31,905 22,126 9,779 24,414 14,635

Particulars Cost Mode of disposal Particulars of purchaser

B/F 31,905 22,126 9,779 24,414 14,635
Yamaha Bikes 77 71 6 8 2 Auction M/S. Muhammad Idrees
Yamaha Bikes 82 74 8 5 (3) Auction M/S. Muhammad Idrees
Suzuki Cultus 1,419 1,027 392 1,569 1,177 Auction M/S Saad Traders
Suzuki Cultus 1,419 1,026 393 949 556 Auction M/S Al Haj dealers
Suzuki Cultus 1,419 973 446 1,529 1,083 Buy Back Aamir Akbar
Corolla 2,381 1,934 447 1,920 1,473 Auction M/S Saad Traders
Suzuki Cultus 1,063 887 176 725 549 Buy Back Wahab-Ur-Rehman
Suzuki Cultus 1,063 883 180 730 550 Buy Back Javaid Iqbal
Suzuki Cultus 1,063 883 180 745 565 Buy Back Sibt-e-Hassan
Suzuki Cultus 1,063 883 180 730 550 Buy Back Mumtaz Hussain
Suzuki Cultus 1,063 873 190 740 550 Buy Back Saqib Ali
Suzuki Cultus 1,119 865 254 735 481 Buy Back Ahmed Alam
Suzuki Cultus 1,124 868 256 735 479 Buy Back Mohammad Nadeem Jameel
Suzuki Cultus 1,124 868 256 735 479 Buy Back Sultan Sikander
Honda Civic 3,640 2,816 824 3,040 2,216 Buy Back Sohail Sadiq EDF
Suzuki Cultus 1,419 1,023 396 1,510 1,114 Buy Back Mohammad Irfan Tahir Sr
Suzuki Cultus 1,419 971 448 1,520 1,072 Buy Back Gulzar Ahmed
Suzuki Cultus 1,419 958 461 1,530 1,069 Buy Back Hafiz Mohammad Umer Butt
Suzuki Cultus 1,419 944 475 1,530 1,055 Buy Back Shakeel Ahmed
Suzuki Cultus 1,603 997 606 1,565 959 Buy Back Mohammad Tahir
Suzuki Cultus 1,603 1,001 602 1,540 938 Buy Back Shabi ul Hassan
Suzuki Cultus 1,643 998 645 1,500 855 Buy Back Omer Farooq
Suzuki Cultus 1,674 976 698 1,570 872 Buy Back Shaukat Nadeem
Suzuki Cultus 1,558 999 559 1,450 891 Auction M/S Dewan Enterprises
Suzuki Cultus 1,672 976 696 1,540 844 Buy Back Waqas Hassan
Total 66,524 46,963 19,561 54,569 35,008

Office Equipments
SPLIT AIR CONDITIONER, 4 TON, 400V 476 310 166 10 (156) Return to Store
Return to Store
Right of Use Asset
Leasehold building 401 401 - - - Retired

Retired
2023 111,713 64,970 46,743 89,125 42,382

239
2022 135,948 102,323 33,626 30,583 (3,043)

2023 2022
20.1.3 Additions in operating fixed assets include transfers from capital work-in-progress amounting 20.2 Movement in capital work-in-progress - at cost
to Rs. 22,593 million (2022: Rs. 2,833.5 million).
20.1.4 Ownership of the housing colony’s assets included in the operating fixed assets is shared by Additions during the year 8,916,977 15,332,007
the Company jointly with Agritech Limited in ratio of 101:245 since the time when both the Less: Transfers during the year 20.1.3 (22,592,981) (2,833,500)
companies were managed by Pakistan Industrial Development Corporation. These assets are
in possession of the housing colony establishment for mutual benefits. At end of the year 1,676,796 15,352,800
20.1.5 Buildings, roads, bridges and railway sidings, plant and machinery are located at freehold land 20.2.1 Capital work-in-progress - at cost
measuring 10,148 kanals located at Iskandrabad District Mianwali.
Civil Works 372,317 3,347,313
20.1.6 The Company has leased land measuring 127 kanals located at Iskandrabad District Mianwali Plant and machinery 588,012 10,691,775
to Maple Leaf Power Limited, a wholly owned subsidiary of the Company. The lease is classified Roads and bridges 12,952 -
as operating lease in these unconsolidated financial statements. Land 10,083 -
Intangible Assets - Oracle Finance / PXP System 47,661 -
20.1.7 Had the certain classes of operating fixed assets not been revalued the net book value would Un Allocated capital expenditure 84,517 -
have been as follows: Vehicles 266 -
Advances to suppliers against:
- civil works 130,188 449,900
2023 2022 - plant and machinery 409,274 861,860
(Rupees in thousand) - intangible Assets 19,575 -
- vehicles 1,951 1,952
Freehold land 824,604 822,154
Buildings on freehold land 14,684,589 9,644,442 1,676,796 15,352,800
Roads, bridges and railway sidings 271,986 290,494
Plant and machinery 41,176,787 26,575,745 ) 20.3 This represents stores held for capital expenditure related to Company's expansion project.
56,957,966 37,332,835 20.4 During the year, borrowing costs of Rs. 1,083 million (2022: Rs. 343 million) were capitalized.
Average effective rate of borrowing cost was 2.50% to 23.69% (2022: 2.50% to 16.27%).
20.1.8 The latest valuation of Company’s assets was carried as at June 30, 2020 and the forced sale
value as at that date is given below: 2023 2022
21. INTANGIBLE ASSETS - COST
(Rupees in
thousand) At beginning of the year 90,671 83,885
Additions during the year - 6,786
Freehold land 953,630
Buildings on freehold land 8,099,496 Accumulated Amortization
Roads, bridges and railway sidings 39,842 At beginning of the year 80,256 77,868
Plant and machinery 25,342,737 Amortization for the year 3,469 2,388
34,435,705 At end of the year 83,725 80,256
Net book value 6,946 10,415

20.1.9 All assets of the Company as at June 30, 2023 are located in Pakistan and are in the name of
the Company. Amortization rate - % per annum 33% 33%
21.1 Amortization charge for the year has been

allocated as follows:
Cost of sales 36 493 740

3,469 2,388
240 241
2023 2022 2023 2022
22. LONG TERM INVESTMENT 26. STOCK-IN-TRADE
Investment in Maple Leaf Power Limited - Unquoted 22.1 5,020,000 5,020,000 Raw material 121,609 108,905
Investment in Maple Leaf Industries Limited - Unquoted 22.2 10,000 - Packing material 1,160,641 258,414
Work-in-process 1,898,084 1,814,046
5,030,000 5,020,000 Finished goods 694,271 514,256
3,874,605 2,695,621
22.1 The Company holds 100% (2022: 100%) shares in Maple Leaf Power Limited, a wholly owned
subsidiary of the Company. 27. TRADE DEBTS
22.2 The Company holds 100% (2022: nil%) shares in Maple Leaf Industries Limited, a wholly owned Export debtors 25,313 26,995
subsidiary of the Company. Local debtors
2023 2022 Considered good - unsecured 2,575,675 2,039,217
Note (Rupees in thousand) Considered doubtful - unsecured 27.1 230,049 50,049
23. LONG TERM LOANS TO EMPLOYEES - SECURED
2,831,037 2,116,261
House building 3,610 4,677
Vehicles 1,761 1,395 Less: Provision for expected credit loss (230,049) (50,049)
Others 23,637 24,162
2,600,988 2,066,212
29,008 30,234
Less: Current portion presented under current assets 28 (10,919) (10,868)
27.1 The movement in provision for impairment of receivables is as follows:
18,089 19,366
2023 2022
23.1 These loans are secured against employees' retirement benefits and carry interest at the rate
of 6% per annum (2022: 6% per annum). These loans are recoverable in 30 to 60 monthly At beginning of the year 50,049 293,392
instalments. Expected credit loss charge for the year 191,421 209,920
Debtors written off (11,421) (453,263)
23.2 This includes loans to executives amounting to Rs. 2.46 million (2022: Rs.4.24 million). The
maximum aggregate amount outstanding from key management personnel at any time during At end of the year 230,049 50,049
the year calculated with reference to month end balances is nil (2022: Rs. 2.2 million). Further,
no amount is due from Directors and the Chief Executive Officer as at June 30, 2023 (2022: nil).
27.2 Trade debts are non-interest bearing and ageing analysis of trade debts is as follows:
24. LONG TERM DEPOSITS
2023 2022
This includes deposits with various utility companies, regulatory authorities and others. (Rupees in thousand)
2023 2022 Not past due 1,170,261 1,342,565

Note (Rupees in thousand) Past due:
25. STORES, SPARE PARTS AND LOOSE TOOLS 1-90 days 1,269,257 568,615
91-180 days 153,260 83,753
Stores 25.1 5,462,153 8,912,932 181-270 days 36,071 72,081
Spare parts 4,439,644 3,910,227 271-365 days 41,690 16,419
Loose tools 24,055 30,446 366-above 160,498 32,828
9,925,852 12,853,605 2,831,037 2,116,261
Less: provision for doubtful balances (230,049) (50,049)

25.1 This include items in transit amounting to 187.63 million (2022: Rs. 95.82 million).
2,600,988 2,066,212
242 243
2023 2022 2023 2022
28. LOANS AND ADVANCES Unrealized fair value gain / (loss)
Unrealized fair value gain / (loss)
Advances - unsecured, considered good At beginning of the year (1,154) 24,648
Fair value loss for the year - P&L 39 (6,773) (25,802)
- Employees 28.1 35,241 28,740 Fair value gain for the year - OCI 263,437 -
- Suppliers 28.2 641,849 367,167
- Government Authorities 28.3 172,807 180,543 At end of the year 255,510 (1,154)
849,897 576,450 Closing balance 3,425,056 28,846
Current portion of long term loans to employees 23 10,919 10,868 Investment at Amortised cost - debt instrument
Term deposit receipts 29.1 264,500 169,500
Refunds due from government 28.3 7,588 7,588
3,689,556 198,346
868,404 594,906
29.1 This represents term deposits having a one-year maturity from April 03, 2023 till June 05, 2024
28.1 This includes loans to executives amounting to Rs. 3.03 million (2022: Rs. 4.00 million) including carrying mark-up at the rate ranging from 8.50% to 15.80% per annum (2022: 8.50% to 15.80%).
loans to key management personnel (Mr. Amir Feroze and Mr. Yahya Hamid) amounting to
Rs.2.97 million (2022: Rs.3.25 million). The maximum aggregate amount outstanding from key 29.2 There has been no investment in any foreign company during the year (2022: Nil).
management personnel (Mr. Amir Feroze and Mr. Yahya Hamid) at any time during the year
calculated with reference to month end balances is Rs. 3.37 million (2022: Rs. 3.25 million). 2023 2022
Further, no amount is due from other directors at the year end (2022: Rs. Nil) (Rupees in thousand)
30. SHORT TERM DEPOSITS AND PREPAYMENTS
28.2 This includes an amount of Rs. 17.95 million (2022: Rs. 121.58 million) advanced to the Ministry
of Railways for transportation of coal and cement. Margin against:
- letters of credit 18,078 69,316
28.3 This represents amount paid to Government under protest for various cases which have been - bank guarantees 446,907 421,955
decided in favour of the Company. Prepayments 17,850 17,211
2023 2022 Short term deposits 95 34,106
29. SHORT TERM INVESTMENT 482,930 542,588
Investment at fair value through profit or loss 31. ACCRUED PROFIT
Next Capital Limited: This represents profit accrued on deposits, saving accounts and term deposit receipts at rates
4,269,375 (2022: 3,712,500) fully paid ranging from 12.25% to 19.50% (2022: 8.50% to 12.25%).
ordinary shares of Rs. 10 each
Equity held: 7.50% (2022: 7.50%) 2023 2022
Cost of Investment 30,000 30,000 Note (Rupees in thousand)
32. OTHER RECEIVABLES
Mutual Funds:
CDC-Trustee MCB Cash Management Optimizer 900,000 - Due from related party - unsecured 32.1 12,419 38,402
Alfalah GHP Money Market Fund 100,000 - Others 32.2 10,112 13,859
CDC-Trustee NBP Cash Plan - II 902,461 -
22,531 52,261
1,902,461 -
Investment at fair value through other 32.1 This represents balance receivable from Kohinoor Textile Mills Limited ( The “Holding
comprehensive income - Listed securities Company”) amounting to Rs. 11,664 thousand (2022: Rs. 38,402 thousand) and Maple Leaf
Pioneer Cement Limited Industries Limited (The “Subsidiary Company”) amounting to Rs. 755 thousand (2022: Rs.nil).
17,321,046 (2022: Nil) fully paid
ordinary shares of Rs. 10 each The maximum aggregate amount outstanding from the Holding Company and the Subsidiary
Equity held: 7.63% (2022: Nil) Company at any time during the year calculated with reference to month end balances is
Cost of Investment 1,237,085 - Rs. 43.93 million (2022: 154.90 million) and Rs. 755 thousand (2022: Rs. nil) respectively.
3,169,546 30,000 32.2 This incudes Rs. 9.77 million (2022: Rs. 11.02 million) receivable against export rebate.
244 245
2023 2022 33.4 The Deputy Commissioner Inland Revenue (DCIR) passed an appeal effect order dated July 31,
(Rupees in thousand) 2017 under section 124/129 of the Ordinance, giving effect to an earlier order passed by CIR(A).
33. ADVANCE INCOME TAX - NET OF PROVISION While passing the order, the DCIR made certain errors which were assailed before CIR(A) in
second round of appeal. CIR(A), through order dated April 17, 2020, decided the issues relating
At beginning of the year 517,799 1,836,907 to enhancement of minimum tax liability and apportionment of admissible deductions against
Tax deducted / deposited at source 715,727 561,635 the Company. Being aggrieved, the Company has preferred an appeal before the ATIR, which
Income tax paid 1,156,806 365,366 is pending adjudication. However, management and tax advisor of the Company are hopeful
Tax refunds received (412,576) (340,366) of favourable outcome of the case. Accordingly no provision has been incorporated in these
unconsolidated financial statements.
1,977,756 2,423,542
Provision during the year: 33.5 Through notices dated February 26, 2021, the Commissioner Inland Revenue (CIR) selected
- current (1,952,454) (1,905,743) the company’s case for audit of its income tax affairs for the tax years 2015, 2016, 2017, 2018 &
- prior - - 2019. The company challenged the vires of selection by the CIR before the Honourable Lahore
High Court and the Honourable Lahore High Court, vide interim order dated April 1, 2021,
(1,952,454) (1,905,743) directed that the audit proceedings shall continue, however, no final order shall be passed till
the disposal of writ petition.
25,302 517,799
Subsequently, the tax authorities issued show cause notices under section 122(9) & section
111 of the Ordinance dated June 11, 2021 and June 25, 2021 respectively, for all five tax years
33.1 Through order no.18/2009 dated December 24, 2009, the tax department finalized the which are yet to be responded to. Since the matter is pending before the Honourable Lahore
adjudication proceeding in respect of audit conducted by the department auditors for tax year High Court, which has barred the tax authorities from passing any final order till the disposal.
2009 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 33.6 Through notice dated October 9, 2020, the Additional Commissioner Inland Revenue (ACIR)
such order under the applicable provisions of Sales Tax Act, 1990 and Federal Excise Act, 2005 initiated proceedings against the company under section 122(9) read with section 122(5A) of
before the ATIR. During the year, the Company’s appeal has been disposed of through appellate the Ordinance for tax year 2019.
order dated March 24, 2020. Through the said appellate order, the ATIR has decided the matter
in favour of the Company on legal grounds. The company requested ACIR to merge such proceedings with the audit proceedings initiated
under section 177 of the Ordinance for such tax year as the issues highlighted in the subject
33.2 Deputy Commissioner Inland Revenue through order dated July 31, 2017 raised a demand notice have also been confronted to the company through audit proceedings. There has been
of Rs. 2.46 million under section 122(5A) for the tax year 2011 of the Income Tax Ordinance, no further correspondence from the department on this score.
2001. The demand was later reduced to Rs. 2.06 million on March 14, 2018. The Company has
preferred an appeal before CIR(A). During the year, CIR(A), through order dated April 17, 2020, 33.7 Through notice dated May 21, 2020, the Additional Commissioner Inland Revenue initiated
decided the issues relating to enhancement of minimum tax liability and apportionment of proceedings against the company under section 122(9) read with section 122(5A) of the
admissible / inadmissible deductions against the Company. Being aggrieved, the Company has Ordinance. The notice was duly responded dated August 25, 2020.
preferred an appeal before the ATIR, which is pending adjudication. However, the management
and tax advisor of the Company are hopeful of favourable outcome of the case. Accordingly no The above proceedings were concluded by the ACIR through amendment order dated
provision has been incorporated in these unconsolidated financial statements. September 2, 2020 passed under section 122(5A) of Ordinance through which income tax
demand of Rs 376.182 million was created against the company. The company preferred an
33.3 The Additional Commissioner Inland Revenue (ACIR) initiated proceedings related to the tax appeal against the amendment order before the Commissioner Inland Revenue.
year 2017, vide order dated March 13, 2019 against the Company under section 122(9) read
with section 122(5A) of the Income Tax Ordinance 2001. The notice was duly responded by tax The CIR(A), through appellate order dated December 30, 2020, decided all the matters in favour
advisor of the Company. The proceedings were concluded and ACIR raised an additional tax of the company except for issues relating to claim of depreciating & initial allowance, without
demand of Rs. 303.36 million through amendment order dated January 27, 2020 passed under reducing tax credit claimed under section 65B of the Ordinance from the cost of the asset,
section 122(5A) of the Ordinance. The Company preferred an appeal against the amendment apportionment of Workers’ Profit Participation Fund, computation of accounting income by
order before the Commissioner Inland Revenue (Appeals) - CIR(A). The CIR(A) through his apportioning deductions on account of donations, provision for Workers’ Welfare Fund & loss
order dated May 6, 2020, decided all the matters in favour of the Company except for issues on investments, and disallowance of claim of advances written off. The company, as well as the
relating to claim of depreciation and initial allowance without reducing tax credit claimed under tax authorities, have preferred an appeal before the Appellant Tribunal Inland Revenue (ATIR),
section 65B of the Ordinance from the cost of the asset and apportionment of advertisement which is pending adjudication. On the basis of available valid precedents, we consider that the
and sales promotion expenses. The Company, as well as the tax authorities, have preferred an company is likely to obtain relief from the appellate authorities.
appeal before the Appellant Tribunal Inland Revenue (ATIR), which is pending adjudication at
the year end. 33.8 The Deputy Commissioner Inland Revenue (DCIR) passed an appeal effect order dated July
31, 2017 related to tax year 2015 under section 124/129 of the Income Tax Ordinance 2001
However, being prudent the Company has recorded the provision of Rs. 46.88 million in giving effect to an earlier order passed by CIR(A). While passing the order, the DCIR made
these unconsolidated financial statements. Management of the Company is confident of certain errors which were assailed before CIR(A) in second round of appeal. During the year
favourable outcome of the case. Therefore, no further provision has been incorporated in these 2020, CIR(A), through order dated April 17, 2020, decided the issues relating to enhancement
unconsolidated financial statements. of minimum tax liability and apportionment of admissible deductions, aggregating to Rs. 180
million, against the Company. Being aggrieved, the Company has preferred an appeal before the
ATIR, which is pending adjudication. However, management and tax advisor of the Company
246 247
are hopeful of favourable outcome of the case. Accordingly no provision has been incorporated 2023 2022
in these unconsolidated financial statements. Note (Rupees in thousand)
34. CASH AND BANK BALANCES
33.9 The Additional Commissioner of Inland Revenue (ACIR), vide order dated May 3, 2017 raised
income tax demand amounting to Rs. 1,001.38 million related to the tax year 2016 primarily on - Cash in hand in local currency 2,626 2,179
account of inadmissibility of tax credit under section 113(2)(c) of the Income Tax Ordinance - Cash in hand in foreign currency 2,527 1,791
2001. Being aggrieved, the Company filed a writ petition in the Honourable Lahore High Court
(LHC) in May 2017 which is pending adjudication. The Company and the tax / legal advisor of 5,153 3,970
the Company are expecting favourable outcome of the case. Therefore, no provision has been Cash at bank
Current accounts:
33.10 For tax year 2021, the Company received the notice dated January 20, 2022 where the Additional
Commissioner Inland Revenue (ACIR) initiated proceedings against the Company under - foreign currency 29,912 15,597
section 122(9) read with section 122(5A) of the Income Tax Ordinance 2001. The Company - local currency 34.1 328,931 464,976
responded to the notice vide letter dated June 23, 2022. The ACIR concluded the proceedings
vide amendment order dated August 5, 2022, through which the income tax refund has been 358,843 480,573
curtailed to Rs 862.51 million. Being aggrieved, the Company is in the process of filing an Deposit accounts 34.2 376,711 309,033
appeal against the amendment order before the CIR(A). The Company and the tax advisor of
the Company are expecting favourable outcome of the case, therefore, no provision has been 735,554 789,606
740,707 793,576
33.11 With respect to the tax year 2012, the Company received the notice dated March 7, 2014 from
tax department for furnishing books of accounts / details / documents for audit under section
177 of the Income Tax Ordinance 2001. In response, the Company filed reply/explanation, 34.1 These include balances of aggregate amount of Rs. 19.32 million (2022: Rs. 16.59 million)
which the Officer Inland Revenue (OIR) found unsatisfactory to the extent of some points which placed under an arrangement permissible under Shariah.
were confronted through notice, dated April 23, 2019 under section 122(4)/122(5)/122(9) of
the Income Tax Ordinance 2001. Subsequently, during the year 2014, the OIR amended the 34.2 These carry return ranging between 16.50% to 19.50% (2022: 6.00% to 12.50%) per annum.
assessment under section 122(4) /122(5) of the Income Tax Ordinance 2001, in the light of These include deposits amounting to Rs. 1.80 million (2022: Rs. 12.39 million) placed under
record available with him vide order dated April 30, 2019 and reduced the losses by making an arrangement permissible under Shariah. Remaining balances represent deposits with
additions of Rs. 256 million. Being aggrieved, the Company filed an appeal before CIR(A) dated conventional banks.
August 7, 2019. The case was heard before CIR(A) dated December 14, 2012 in which the CIR(A)
upheld the additions of Rs. 116 million, remand back total additions of Rs. 113 million and delete 2023 2022
total additions of Rs. 27 million vide order dated December 31, 2021. Being aggrieved with the (Rupees in thousand)
treatment of CIR(A) the Company filed an appeal before ATIR dated March 15, 2022 which is 35. SALES - NET
pending for adjudication at the year end. The Company and the tax advisor of the Company are
expecting favourable outcome of the case. Therefore, no provision has been booked in these Gross local sales 82,063,434 66,251,395
unconsolidated financial statements. Less:
Federal Excise duty (6,911,333) (6,973,716)
33.12 The Company filed writ petition challenging the legality and validity of amendments made in Sales Tax (13,494,564) (10,631,729)
the Section 65B of the Income Tax Ordinance, 2001 through Finance Act, 2019 whereby rate Discount and others (952,544) (726,418)
of tax credit under Section 65-B of the Ordinance for the tax year 2019 was reduced from 10% Commission (355,675) (275,582)
to 5%. Total amount of tax credit involved in the tilted petition is Rs. 1,757,292,581/-. The said
petition is pending before Lahore High Court and next date is yet to be fixed for hearing. (21,714,116) (18,607,445)
Based on the advice of the taxation/legal advisors of the Company, the management expects a Net local sales 60,349,318 47,643,950
favourable outcome in most of the above cases and adequate provisions have been created in Export sales 1,725,941 875,672
the unconsolidated financial statements.
62,075,259 48,519,622
248 249
2023 2022 2023 2022
(Rupees in thousand) Note (Rupees in thousand)
35.1 Disaggregation of Revenue (Gross sales) 36. COST OF SALES
Type of Customers Raw materials consumed 36.1 2,904,016 2,413,914

Government Customers 25,796 14,683 Packing materials consumed 3,376,679 3,065,308
Non-Government Customers 83,763,579 67,112,384 Fuel and power 30,774,898 23,986,931
Stores, spare parts and loose tools consumed 1,028,692 1,315,004
83,789,375 67,127,067 Salaries, wages and other benefits 36.2 1,466,675 1,274,160
Rent, rates and taxes 9,219 1,673
Primary Geographical Markets Insurance 120,941 83,713
Repairs and maintenance 535,939 407,350
Pakistan 82,063,434 66,251,395 Depreciation 20.1.1 3,378,526 3,163,345
Afghanistan 1,596,388 787,476 Amortization 21.1 493 740
Mozambique 2,553 1,540 Vehicles running and maintenance 417,276 212,461
Nigeria - 1,358 Freight and forwarding 1,749,597 699,664
Ethiopia 2,741 1,658 Other expenses 36.3 152,605 139,073
Oman 11,553 25,356
Qatar 4,320 5,075 45,915,556 36,763,336
Seychelles 6,935 - Work in process:
Sri Lanka 36,674 32,685 At beginning of the year 1,814,046 1,421,319
Tanzania 64,777 20,524 At end of the year (1,898,084) (1,814,046)
83,789,375 67,127,067 (84,038) (392,727)
35.2 Break up of export sales Cost of goods manufactured 45,831,518 36,370,609
Category Finished goods:

Afghanistan Advance 1,596,388 787,476 At beginning of the year 514,256 387,803
Mozambique Advance 2,553 1,540 At end of the year (694,271) (514,256)
Nigeria Advance - 1,358
Ethiopia L/C 2,741 1,658 (180,015) (126,453)
Oman Advance 11,553 25,356
Qatar Advance 4,320 5,075 Cost of sales 45,651,503 36,244,156
Seychelles Advance 6,935 -
Sri Lanka Advance 36,674 32,685 36.1 Raw materials consumed
Tanzania Advance 64,777 20,524
At beginning of the year 108,905 109,758
1,725,941 875,672 Add: Purchases made during the year 2,916,720 2,413,061
3,025,625 2,522,819
Less: At end of the year (121,609) (108,905)
2,904,016 2,413,914
36.2 Salaries, wages and other benefits expense includes contribution to provident fund trust
amounting to Rs. 67.17 million (2022: Rs. 57.72 million) and gratuity and compensated absence
as mentioned in note 15.6 to these unconsolidated financial statements.
36.3 Other expenses include housing colony expenses aggregating to Rs. 99.016 million (2022:
Rs. 77.72 million).
250 251
2023 2022 2023 2022
37. DISTRIBUTION COST Note (Rupees in thousand) 39. OTHER CHARGES Note (Rupees in thousand)
Salaries, wages and other benefits 37.1 396,714 288,873 Donation 39.1 42,355 6,605
Travelling and conveyance 281,716 209,953 Workers' Profit Participation Fund (WPPF) 56,319 376,250
Vehicle running and maintenance 111,336 52,990 Workers' Welfare Fund (WWF) 189,936 92,486
Postage, telephone and fax 10,086 7,831 Un-realised loss on investments 29 6,773 25,802
Printing, stationery and office supplies 6,650 5,060 Exchange loss- net 700,077 238,094
Entertainment 15,847 14,300 Loss on disposal of property, plant and equipment - 3,043
Repair and maintenance 10,873 10,565
Depreciation 20.1.1 28,358 17,897 995,460 742,280
Legal and professional charges 12,675 1,949 39.1 Donations for the year have been given to:
Advertisement and sale promotions 1,044,615 812,020
Fee and subscription 64,328 48,438 Maple CSR Initiative as per DC Office requirement 3,476 -
Other expenses 18,301 14,000 Daud Khel Police Station 248 -
Sunshine Trust 5,000 -
2,001,499 1,483,876 Earth Quick in Turkey & Syria 1,410 -
MAYO Hospital (Baby Incubator) - 1,319
37.1 Salaries, wages and other benefits expense includes contribution to Provident Fund Trust Dialysis center in AGL hospital - 1,000
amounting to Rs. 15.74 million (2022: Rs. 13.52 million) and gratuity and compensated absence Daud Khel Water Supply Project 365 726
as mentioned in note 15.6 to these unconsolidated financial statements. Beaconhouse National University (Scholarship) 782 1,358
Akhuwat Islamic Micro Finance 15,000 -
2023 2022 Financial assistance for the deceased worker - 600
38. ADMINISTRATIVE EXPENSES Note (Rupees in thousand) Shafaullah 270 120
Local schools at Daud Khel 100 1,482
Salaries, wages and other benefits 38.1 730,016 485,524 Kinnaird College Lahore 112 -
Travelling 136,536 74,235 Aga Khan Planning , Building Service 15,000 -
Vehicle running and maintenance 103,953 54,594 Miscellaneous Donations in the form of cement 592 -
Postage, telephone and fax 18,777 15,835
Printing, stationery and office supplies 57,256 37,350 42,355 6,605
Entertainment 45,586 32,499
Utilities expenses 49,794 44,245 39.1.1 None of the Directors of the Company or their spouses have any interest in donees.
Legal and professional charges 38.2 55,993 38,794 2023 2022
Consultancy fee and subscription 60,378 55,049 Note (Rupees in thousand)
Depreciation 20.1.1 64,996 50,347 40. OTHER INCOME
Amortization 21.1 2,976 1,648
Advances / Receivable written off 2,509 9,209 Income from financial assets
Rent, rates and taxes 8,447 12,711 Profit on bank deposits 40.1 53,781 23,391
Other expenses 20,231 13,364 Interest on loans to employees 279 319
1,380,607 971,453 Gain on investment from mutual fund 8,429 -
Gain on disposal of property, plant and equipment 42,382 -
38.1 Salaries, wages and other benefits expense includes contribution to Provident Fund Trust 104,871 23,710
amounting to Rs. 30.19 million (2022: Rs. 20.67 million) and gratuity and compensated absence Income from non-financial assets
as mentioned in note 15.6 to these unconsolidated financial statements.
38.2 Legal and professional charges include the following in respect of Auditors' remuneration for: Sale of scrap 2,738 634
Rental income - 1,584
2023 2022 Miscellaneous 39,037 30,673
(Rupees in thousand) 41,775 32,891
Annual statutory audit 1,900 1,850 146,646 56,601

Interim review 650 650
Other certification 900 1,440 40.1 This includes profit earned on deposits under arrangements which are permissible under
Out of pocket expenses 600 620 Shariah amounting to Rs. 0.59 million (2022: Rs. 0.64 million). The remaining profit relates to
interest / mark-up based arrangements from conventional banks.
4,050 4,560
38.3 The Company has shared expenses aggregating Rs. 36.49 million (2022: Rs. 21.57 million) on
account of combined offices with the Holding Company. These expenses have been recorded
in respective account.
252 253
2023 2022 43. EARNINGS PER SHARE - BASIC AND DILUTED Unit 2023 2022
41. FINANCE COST 43.1 Basic earnings per share
Profit / interest / mark up on: Profit after taxation Rupees in '000 4,491,669 3,626,340
- Long term loans and finances 8 1,960,526 1,114,050
- Long term loans from Subsidiary Company 10 370,756 104,170 Weighted average number of
- Short term borrowings 18 343,849 431,729 ordinary shares No. of shares in '000 1,073,405 1,097,524
2,675,131 1,649,949 Rupees 4.18 3.30
Notional interest on unwinding of retention

money payable 2,790 27,828 2023 2022
Notional interest on unwinding of payable to (Rupees in thousand)
government authority 216 9,871 43.2 Weighted average number of ordinary shares
Interest on lease liabilities 5,038 2,377
Bank and other charges 67,573 51,001 Outstanding number of shares before right issue 1,097,524 1,098,346
2,750,748 1,741,026 Less: Impact of own shares purchased (24,119) (822)
42. TAXATION 1,073,405 1,097,524
Income tax
- current 1,952,454 1,905,743 43.3 There is no dilution effect on the basic earnings per share.
- prior - -
2023 2022
1,952,454 1,905,743 Note (Rupees in thousand)
Deferred 2,806,544 1,651,429 44. CASH AND CASH EQUIVALENTS
4,758,998 3,557,172 Short term running finance 18.2 - (1,396,990)

Temporary bank overdrafts - unsecured 18.4 - (505)
42.1 Tax charge reconciliation Cash and bank 34 740,707 793,576
42.1.1 Numerical reconciliation between tax expense 740,707 (603,919)

and accounting profit:
Applicable tax rate as per Income Tax Ordinance, 2001 29% 29%
Tax on accounting profit 2,682,693 2,083,218

Impact of super tax under section 4E 403,649 702,332
Effect of final tax regime (12,192) (24,169)
Change in tax rate and proportion of local and export sales 1,684,848 860,054
Other - (64,263)
4,758,998 3,557,172
254 255
45. RELATED PARTY TRANSACTIONS AND BALANCES 46. REMUNERATION OF CHAIRMAN, CHIEF EXECUTIVE, DIRECTORS,
NON-EXECUTIVE DIRECTORS AND EXECUTIVES
The Company is a subsidiary of Kohinoor Textile Mills Limited (the “Holding Company”), accordingly
all the subsidiaries and associated companies of the Holding Company are related party of the The aggregate amounts charged in the unconsolidated financial statements for the year for
Company. In addition Company’s related parties comprises of the Subsidiary Company, directors of remuneration, including all benefits to the Chairman, Chief Executive, Directors and Executives of the
the Company key management personnel and post employment retirement plan. Amount due from Company are as follows:
and due to related parties are shown under respective notes. Other significant transactions and
balances with related parties except those disclosed elsewhere are as follows: 2023
Directors
2023 2022
Name of parties Relationship Transactions Note
(Rupees in thousand) Chief
Executive Non-Executives Executives
a) Kohinoor Textile Mills Limited Holding Company Sale of goods to related party 2,142 101,341 Executive
(56.51% equity held Purchase of fixed assets 6,022 -
2022: 55.22% equity held)
Expenses paid by related party on behalf of the Company 36,489 21,666
(----------------------- Rupees in thousand ----------------------- )
Expenses paid by the Company on behalf of related party - 1,948
Short term benefits
Due from related party 11,664 38,402 Managerial remuneration 150,048 29,759 - 454,358
House rent 5,850 1,630 - 86,403
b) Maple Leaf Power Limited Subsidiary Company Coal provided to Subsidiary Company 5,035,036 3,819,160 Medical 5,850 2,237 - 38,105
(100% equity held) Coal received from Subsidiary Company - 572,642 Conveyance 2,338 1,961 - 81,943
Long term loan from subsidiary 10 - 1,000,000
Rent charged to subsidiary Company 436 435
Utilities 5,175 1,746 - 57,930
Purchase of goods and services (inclusive of taxes) 7,142,166 6,174,121 Advisory arrangement - - 96,000 -
Payments made by related party on behalf of the Company 5,011 109,211
Markup paid during the year to related party 287,958 93,301 169,261 37,333 96,000 718,739
Expenses paid on the behalf of related party 157,356 134,307
Sale proceed from sale of vehicle - 1,890
Post employment benefits
c) Maple Leaf Industries Limited Subsidiary Company Investment in subsidiary 10,000 -
(100% equity held)
Contribution to Provident
d) Maple Leaf Capital Limited Associated Company None - - Fund Trust 5,850 2,237 6,240 38,014
(Common management)
e) TRG Pakistan Limited Associated Company None - - 175,111 39,570 102,240 756,753
(Common management)
f) Key management personnel Key management personnel Remuneration and other benefits 456,046 255,683
g) Employee benefits
Numbers 1 1 7 153
Gratuity Post employment benefit plan Contribution 41,171 27,577
Provident Fund Trust Employees benefit fund Contribution 281,503 211,461
2022
45.1 Key management personnel are those persons having authority and responsibility for planning, Directors
directing and controlling the activities of the entity. The Company considers all members of their Chief
management team, including Chief Executive Officer and Directors to be its key management Executive
personnel and these are disclosed below.
(------------------------- Rupees in thousand ------------------------- )
Short term benefits
Name Relationship % of shareholding in the Company Managerial remuneration 36,199 24,947 - 300,821
House rent 4,433 - - 60,644
Mr. Tariq Sayeed Saigol Director / Key management personnel 0.0031%
Medical 2,726 1,676 - 23,854
Mr. Sayeed Tariq Saigol Director / Key management personnel 0.0010%
Conveyance 1,632 1,188 - 34,664
Mr. Taufique Sayeed Saigol Director / Key management personnel 0.0015% Utilities 4,942 2,361 - 49,084
Mr. Waleed Tariq Saigol Director / Key management personnel 0.0011% Advisory arrangement - - 52,501 -
Mr. Danial Taufique Saigol Director / Key management personnel 0.0005%
49,932 30,172 52,501 469,067
Ms. Jahanara Saigol Director / Key management personnel 0.0002%
Mr. Shafiq Ahmed Khan Director / Key management personnel 0.0015%
Post employment benefits
Mr. Zulfikar Monnoo Director / Key management personnel 0.0003%
Mr. Syed Mohsin Raza Naqvi Director / Key management personnel N/A Fund Trust 2,726 1,676 2,963 23,854
Mr. Sohail Sadiq Key management personnel N/A
Mr. Yahya Hamid Key management personnel N/A 52,658 31,848 55,464 492,921
Mr. Amir Feroze Key management personnel N/A
Mr. Zeeshan Malik Bhutta Key management personnel N/A Numbers 1 1 7 101
Mr. Nasir Iqbal Key management personnel N/A
Mr. Tariq Ahmed Mir Key management personnel N/A
Mr. Amer Bilal Key management personnel N/A 46.1 The Chief Executive, Directors and some Executives are also provided with company maintained
cars in accordance with the respective policies.
Mr. Muhammad Basharat Key management personnel N/A
46.2 Aggregate amount charged in these unconsolidated financial statements in respect of meeting
fee paid to Directors is Rs. 0.58 million (2022: Rs. 0.34 million).
256 257
47. CAPACITY AND PRODUCTION 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
Capacity Actual Production audit committee.
2023 2022 2023 2022
The Company’s exposure to financial risks, the way these risks affect the financial position and
------------------------------ Metric tons ------------------------------ performance, and forecast transactions of the Company and the manner in which such risks are
managed is as follows:
Clinker 7,100,000 5,700,000 3,928,830 4,528,651
49.1 Credit risk and concentration of credit risk
48. OPERATING SEGMENT
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
Information about operating segment 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
Operating segments are reported in a manner consistent with the internal reports issued to the chief limits and monitoring of exposures against these limits. As part of these processes the financial
operating decision-maker. The Chief Executive Officer has been identified as the ‘chief operating viability of all counterparties is regularly monitored and assessed.
decision-maker’, who is responsible for allocating resources and assessing performance of the
operating segments. Currently the Company is functioning as a single operating segment. 49.1.1 Exposure to credit risk
Geographical information 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:
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 2023 2022
follows: (Rupees in thousand)
2023 2022 Financial asset at amortized cost
Percentage
Geographical area Long term deposits 58,401 57,600
Trade debts 2,600,988 2,066,212
Asia 99.91% 99.96% Long term loans to employees 29,008 30,234
Africa 0.09% 0.04% Short term loan / advance to employees 35,241 28,740
Short term investment 264,500 169,500
100.00% 100.00% Margin and short term deposits 465,080 525,377
Accrued profit 8,792 7,075
All assets of the Company as at June 30, 2023 are located in Pakistan. Other receivables 22,531 52,261
Cash at Bank 735,554 789,606
49. FINANCIAL RISK MANAGEMENT
4,220,095 3,726,605
The Company has exposure to the following risks arising from financial instruments:
49.1.2 Concentration of credit risk
- credit risk
- liquidity risk The Company identifies concentrations of credit risk by reference to type of counter party.
- market risk Maximum exposure to credit risk by type of counterparty is as follows:
Risk management framework 2023 2022

The Company’s Board of Directors (“the Board”) has overall responsibility for establishment and
oversight of the Company’s risk management framework. The Board is responsible for developing Customers 2,600,988 2,066,212
and monitoring the Company’s risk management policies. Banking companies and financial institutions 1,473,831 1,457,452
Others 145,276 202,941
The Company’s 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. 4,220,095 3,726,605
Risk management policies and systems are reviewed regularly to reflect changes in market conditions 49.1.3 Credit quality and impairment
and the Company’s activities. The Company, through its training and management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees Credit quality of financial assets is assessed by reference to external credit ratings, where
understand their roles and obligations. The Board of Directors reviews and agrees upon the policies available, or to historical information about counterparty default rates. All counterparties, with
for managing each of these risks. 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
The Company’s audit committee oversees how management monitors compliance with the present ages.
Company’s 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
258 259
49.1.3(a) Counterparties with external credit ratings 49.1.3(b) Counterparties without external credit ratings
These include banking companies and financial institutions, which are counterparties to bank These mainly include customers which are counter parties to local and foreign trade debts
balances, margin against bank guarantees, margin against letter of credit and accrued return against sale of cement. As explained in note 3.10, the Company applies the IFRS 9 simplified
on deposits. Credit risk is considered minimal as these counterparties have reasonably high approach to measure expected credit losses which uses a lifetime expected loss allowance for
credit ratings as determined by various credit rating agencies. Due to long standing business all trade receivables. Trade receivables are written off when there is no reasonable expectation of
relationships with these counterparties and considering their strong financial standing, recovery. On adoption of IFRS 9, management uses an allowance matrix to base the calculation
management does not expect non-performance by these counterparties on their obligations to of ECL of trade receivables from individual customers, which comprise a very large number of
the Company. Following are the credit ratings of counterparties with external credit ratings: small balances. Loss rates are calculated using a ‘role rate’ method based on the probability of
receivable progressing through successive stages of delinquency to write-off. The Company
Banks Rating 2023 2022 has used three years quarterly data in the calculation of historical loss rates along with the
Short term Long term Agency (Rupees in thousand) matching quarterly ageing brackets for the computation of roll rates. These rates are multiplied
Bank balances
by scalar factors to reflect the effect of forward looking macro economic factors. The analysis of
Allied Bank Limited A1+ AAA PACRA 35,931 5,256 ages of trade debts and loss allowance using the aforementioned approach as at June 30, 2023
Askari Bank Limited A1+ AA+ PACRA 32,381 15,709 was determined as follows:
Bank Al-Habib Limited A1+ AA+ PACRA 69,523 145,032
Bank Alfalah Limited A1+ AA+ VIS- PACRA 3,618 6,928 2023 2022
Bank Islami Pakistan Limited A1+ A PACRA 13,643 13,492 Gross Loss Gross Loss
The Bank of Punjab A1+ AA+ PACRA 2,604 12,591 carrying amount Allowance carrying amount Allowance
AlBaraka Bank Limited A1 A+ PACRA 9 9
Dubai Islamic Bank Pakistan Limited A1+ AA VIS 2,580 2,580 ---------------------- (Rupees in thousand) ----------------------
Faysal Bank Limited A1+ AA PACRA - VIS 1,161 4,687
Finca Microfinance Bank Limited A1 A PACRA - VIS 3,148 5,082 The ageing of trade debts at the reporting date is:
Habib Bank Limited A1+ AAA PACRA 105,806 195,064
Habib Metropolitan Bank Limited A1+ AA+ PACRA 20,808 31,780 Not past due 1,170,261 9,404 1,342,565 4,687
MCB Bank Limited A1+ A1+ PACRA 368,658 304,198
National Bank of Pakistan A1+ AAA PACRA - VIS 5,839 4,708 Past due:
Samba Bank Limited A1+ AAA VIS 1,525 1,485 1- 90 days 1,269,257 14,021 568,615 1,985
Silk Bank Limited A-2 A- VIS 14 13 91 - 180 days 153,260 22,401 83,753 3,616
Soneri Bank Limited A1+ AA- PACRA 104 102
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 2,853 2,820 181 - 270 days 36,071 10,006 72,081 7,156
Summit Bank Limited A3 BBB- VIS 25 25 271 - 365 days 41,690 13,719 16,419 2,816
United Bank Limited A1+ AAA VIS 65,324 38,045
366 - above days 160,498 160,498 32,828 29,789
735,554 789,606
Short term investment - Term deposit receipts
The Bank of Punjab A1+ AA+ PACRA 264,500 169,500 2,831,037 230,049 2,116,261 50,049
Accrued profit Customer credit risk is managed by each business unit subject to the Company’s established policy,
The Bank of Punjab A1+ AA+ PACRA 8,792 7,075 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
Margin against bank guarantees extensive credit rating. Outstanding customer receivables are regularly monitored and shipments to
Allied Bank Limited A1+ AAA PACRA 14,000 1,700 the export customers are generally covered by letters of credit or other form of credit insurance.
Askari Bank Limited A1+ AA+ PACRA 260,000 260,000
United Bank Limited A1+ AAA VIS 31,214 31,214
Summit Bank Limited A3 BBB- VIS 44,788 32,135
49.2 Liquidity risk
Soneri Bank Limited A1+ AA- PACRA 5,000 5,000
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 1,964 1,964 Liquidity risk is the risk that an entity will encounter difficulty in meeting the obligations
Habib Metropolitan Bank Limited A1+ AA+ PACRA 39,941 39,942 associated with its financial liabilities that are settled by delivering cash or another financial
Dubai Islamic Bank Pakistan Limited A1+ AA VIS 50,000 50,000 assets, or that such obligations will have to be settled in a manner unfavourable to the Company.
Management closely monitors the Company’s liquidity and cash flow position. This includes
446,907 421,955
maintenance of liquidity ratios, debtors and creditors concentration both in terms of the overall
Margin against letters of credit funding mix and avoidance of undue reliance on large individual customers.
The Bank of Punjab A1+ AA+ PACRA 8,008 - Ultimate responsibility for liquidity risk management rests with the Board of Directors, which
Habib Bank Limited A1+ AAA PACRA - 62,734 has built an appropriate liquidity risk management framework for the management of the
Habib Metropolitan Bank Limited A1+ AA+ PACRA 1,749 1,462 Company’s short, medium and long-term funding and liquidity management requirements.
18,078 69,316 The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and
Total 1,473,831 1,457,452 matching the maturity profiles of financial assets and liabilities. Included in notes 8 and 18 to
these unconsolidated financial statements is a listing of additional undrawn facilities that the
Company has at its disposal to further reduce liquidity risk.
260 261
49.2.1 Exposure to liquidity risk 49.3.1(a) Exposure to currency risk
Contractual maturities of financial liabilities, including estimated interest payments 2023

Rupees GBP AED RMB EURO USD
The following are the remaining contractual maturities at the reporting date. The amounts are --------------------------------- in thousand ---------------------------------
grossed and undiscounted, and include estimated interest payments and exclude the impact
Assets
of netting agreements. - Trade debts 25,313 - - - - 129
- Cash and bank balances 32,439 2 - - - 111
2023
57,752 2 - - - 240
Carrying Contractual Less than Between Above Liabilities
amount cash flows 1 year 1 to 5 years 5 years - Trade creditors and bills payable (843,721) - - - (2,939)
---------------------- (Rupees in thousand) --------------------- (843,721) - - - - (2,939)

Non-derivative financial liabilities Net Statement of financial position exposure (785,969) 2 - - - (2,699)
Long term loans from financial
institution - secured 18,618,431 28,397,322 5,974,273 19,881,580 2,541,468 Off statement of financial position items
Long term loan from - Outstanding letters of credit (13,903,404) - - (39,475) (1,050) (922)
Subsidiary Company 2,000,000 3,496,504 478,200 3,018,304 -
Net exposure (14,689,373) 2 - (39,475) (1,050) (3,621)
Long term deposits 8,214 8,214 - 8,214 -
Retention money payable 1,752,988 1,752,988 - 1,752,988 -
Trade and other payables 8,960,618 8,960,618 8,960,618 - - 2022
Unclaimed dividend 27,378 27,378 27,378 - -
Mark-up accrued on borrowings 880,039 880,039 880,039 - -
------------------------------- in thousand -------------------------------
32,247,668 43,523,063 16,320,508 24,661,086 2,541,468
Assets
- Trade debts 26,995 - - - - 129
- Cash at bank 17,388 2 - - - 82
2022
Carrying Contractual Less than Between Above 44,383 2 - - - 211
amount cash flows 1 year 1 to 5 years 5 years Liabilities
- Trade creditors and bills payable (69,371) - (22) (471) (47) (210)
--------------------- (Rupees in thousand) ----------------------
(69,371) - (22) (471) (47) (210)
Non-derivative financial liabilities
Long term loans from financial Net Statement of financial position exposure (24,988) 2 (22) (471) (47) 1
institutions - secured 20,339,002 29,694,914 5,279,292 19,257,595 5,158,027
Off statement of financial position items
Long term loan from - Outstanding letters of credit (3,922,077) - (170) (109,402) (864) (1,708)
Subsidiary Company 2,000,000 2,849,839 323,200 2,526,639 -
Long term deposits 8,214 8,214 - 8,214 - Net exposure (3,947,065) 2 (192) (109,873) (911) (1,707)
Trade and other payables 6,115,035 6,115,035 6,115,035 - -
Mark-up accrued on borrowings 665,122 665,122 665,122 - - 49.3.1(b) Exchange rates applied during the year
Short term borrowings 3,572,073 3,572,073 3,572,073 - -
32,727,015 42,932,766 15,982,291 21,792,448 5,158,027

The following significant exchange rates have been applied:
49.3 Market risk Average rate for the year Reporting date spot rate
2023 2022
2023 2022
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest Buying Selling Buying Selling
rates and equity prices will affect the Company’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk GBP 304.25 236.36 364.77 365.40 249.31 249.92
exposures within acceptable parameters, while optimizing return. CHF 271.22 190.84 320.34 320.90 215.43 215.96
EURO 267.16 200.16 313.72 314.27 215.23 215.75
49.3.1 Currency risk USD 253.08 178.01 286.60 287.10 205.5 206
YEN 1.84 1.52 2.00 2.00 1.50 1.51
The Company is exposed to currency risk to the extent that there is a mismatch between the AED 69.39 48.46 78.59 78.72 56.35 56.48
currencies in which advances, sales and purchases and bank balances are denominated and RMB 36.38 27.57 39.91 39.98 30.85 30.93
the respective functional currency of the Company. The functional currency of the Company is SGD 186.09 130.87 212.36 212.73 147.69 148.05
Pak Rupee. The currencies in which these transactions are primarily denominated are Euros,
US dollars and Chinese Yuan.
262 263
49.3.1(c) Sensitivity analysis 49.3.2(b) Variable rate financial instruments
A reasonably possible strengthening / (weakening) of 10% in Pak Rupee against the following 2023 2022
currencies would have affected the measurement of financial instruments denominated in Financial Financial Financial Financial
foreign currency and affected statement of profit or loss by the amounts shown below at the Note assets liabilities assets liabilities
statement of financial position date . The analysis assumes that all other variables, in particular
-------------- (Rupees in thousand) --------------
interest rates, remain constant and ignores any impact of forecast sales and purchases.
Non-derivative financial instruments
Profit Long term loans from financial
2023 2022 institutions-secured 8 - 18,618,431 - 20,339,002
(Rupees in thousand) Long term loan from Subsidiary Company 10 - 2,000,000 - 2,000,000
Short term borrowings - Running Finance 18 - - - 3,571,568
USD (103,967) (35,164) Bank balances at deposit accounts 34 376,711 - 309,033 -
EURO (32,998) (19,655)
RMB (157,823) (339,837) 376,711 20,618,431 309,033 25,910,570
GBP 67 50
AED - (124) The related mark-up / interest rates for fixed rate financial instruments are indicated in the
related notes to the unconsolidated financial statements.
(294,721) (394,730)
Cash flow sensitivity analysis for variable rate instruments
49.3.1(d) Currency risk management
A reasonably possible change of 100 basis points in interest rates at the reporting date would
Since the amount exposed to currency risk is very insignificant as compared to total assets have (decreased) / increased profit by amounts shown below. The analysis assumes that all
or total liabilities of the Company therefore any adverse / favourable movement in functional other variables, in particular foreign exchange rates, remain constant. This analysis is performed
currency with respect to US dollar , GBP and Euro will not have any material impact on the on the same basis for the year 2023
Company’s operational results. Profit
2023 2022
49.3.2 Interest rate risk (Rupees in thousand)
Increase of 100 basis points
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 Variable rate instruments (202,417) (256,015)
mismatch of financial assets and financial liabilities that mature or re-price in a given period.
Decrease of 100 basis points
49.3.2(a) Fixed rate financial instruments
Variable rate instruments 202,417 256,015
The effective interest / mark-up rates for interest / mark-up bearing financial instruments are
mentioned in relevant notes to the financial statements. The Company’s interest / mark-up The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year
bearing financial instruments as at the reporting date are as follows: and the outstanding liabilities of the Company at the year end.
2023 2022 49.3.2(c) Interest rate risk management

Financial Financial Financial Financial The Company manages these mismatches through risk management strategies where
assets liabilities assets liabilities
significant changes in gap position can be adjusted. The short term borrowing and loans and
-------------- (Rupees in thousand) -------------- advances by the Company has variable rate pricing that is mostly dependent on Karachi Inter
Non-derivative financial instruments Bank Offer Rate (“KIBOR”) as indicated in respective notes.
Short term investment - term 49.3.3 Price risk

deposit receipt 264,500 - 169,500 -
Price risk represents the risk that the fair value or future cash flows of financial instrument will
The related mark-up / interest rates for fixed rate financial instruments are indicated in the fluctuate because of changes in market prices, other than those arising from interest rate risk or
related notes to the unconsolidated financial statements. 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.
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 or loss. Therefore, a change in profit / mark-up / interest rates at the reporting
date would not affect the unconsolidated statement of profit or loss.
264 265
49.3.3(a) Investments exposed to price risk Carrying Amount Fair Value
Fair Value Financial
through assets Other
At the balance sheet date, the Company’s investment in quoted equity securities and statement at financial
investments in money market mutual funds is as follows: of profit amortised liabilities Total Level 1 Level 2 Level 3
or loss cost
2023 2022
Note - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees in thousand) - - - - - - - - - - - - - - - - - - - - - - - - - - -
(Rupees in thousand) June 30, 2023
Financial assets at fair value

Investment in equity securities 3,425,056 28,846
Short term investments 3,425,056 - - 3,425,056 3,425,056 - -
49.3.3(b) Sensitivity analysis Financial assets at amortised cost
Cash and bank balances - 740,707 - 740,707 - - -

Long term loans to employees - 29,008 - 29,008 - - -
A 10.00% increase / (decrease) share prices at year end would have increased / (decreased) Short term investment - term deposit receipt - 264,500 - 264,500 - - -
the Company’s fair value gain on investment as follows: Margin and short term deposits - 465,080 - 465,080 - - -
Other receivables 22,531 - 22,531 - - -
Equity Accrued profit - 8,792 - 8,792 - - -
2023 2022 Long term deposits
Trade debts
-
-
58,401
2,600,988
-
-
58,401
2,600,988
-
-
-
-
-
-
50.1 3,425,056 4,190,007 - 7,615,063 3,425,056 - -
Short term investment at fair value
through statement of profit or loss Financial liabilities measured at fair value - - - - - - -
Financial liabilities not measured at fair value

Effect of increase 342,506 2,885
Long term loans from banking companies - secured - - - 18,618,431 18,618,431 - - -
Effect of decrease (342,506) (2,885) Long term loan from Subsidiary Company - - 2,000,000 2,000,000 - - -
Long term deposits - - 8,214 8,214 - - -
Retention money payable - - 1,752,988 1,752,988 - - -
49.3.3(c) Price risk management Trade and other payables - - 3,390,287 3,390,287 - - -
Unclaimed dividend - - 27,378 27,378 - - -
Mark-up accrued on borrowings - - 880,039 880,039 - - -
The Company manages price risk by monitoring exposure in quoted equity securities and
50.1 - - 26,677,337 26,677,337 - - -
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 Carrying Amount Fair Value
realized in the subsequent sale of an investment may significantly differ from reported market Fair Value Financial
value. Fluctuations in the market price of a security may result from perceived changes in the statement at financial
of profit amortised liabilities Total Level 1 Level 2 Level 3
underlying economic characteristics of the investee, the relative price of alternative investments or loss cost
and general market conditions. Furthermore, amount realized in the sale of a particular security Note - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees in thousand) - - - - - - - - - - - - - - - - - - - - - - - - - - -
may be affected by the relative quantity of the security being sold.
June 30, 2022
50. FAIR VALUES Financial assets measured at fair value
Short term investments 28,846 - - 28,846 28,846 - -

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly 28,846 - - 28,846 28,846 - -
transaction between market participants at the measurement date.
Financial assets at amortised cost

Underlying the definition of fair value is the presumption that the Company is a going concern Long term loans to employees - 30,234 - 30,234 - - -
without any intention or requirement to curtail materially the scale of its operations or to undertake a Short term investment - term deposit receipt - 169,500 - 169,500
Short term loan / advance to employees - 28,740 - 28,740
transaction on adverse terms. Margin and short term deposits - 525,377 - 525,377 - - -
Other receivables - 52,261 - 52,261 - - -
Accrued profit - 7,075 - 7,075 - - -
The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are Long term deposits - 57,600 - 57,600 - - -
based on the quoted market prices at the close of trading on the period end date. The quoted market Trade debts - 2,066,212 - 2,066,212 - - -
prices used for financial assets held by the Company is current bid price. 50.1 - 3,730,575 - 3,730,575 - - -
IFRS 13, ‘Fair Value Measurements’ requires the Company to classify fair value measurements using
Financial liabilities measured at fair value - - - - - - -
a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
The fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can Long term loans from banking companies - secured - - - 20,339,002 20,339,002 - - -
Long term loan from Subsidiary Company - - 2,000,000 2,000,000 - - -
access at the measurement date (level 1). Long term deposits - - 8,214 8,214 - - -
Trade and other payables - - 6,115,035 6,115,035 - - -
- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, Unclaimed dividend - - 27,569 27,569 - - -
either directly or indirectly (level 2). Mark-up accrued on borrowings - - 665,122 665,122 - - -
Short term borrowings - - 3,572,073 3,572,073 - - -
- Unobservable inputs for the asset or liability (level 3).
50.1 - - 32,727,015 32,727,015 - - -
The following table shows the carrying amounts and fair values of financial assets and financial
liabilities including their levels in the fair value hierarchy:
266 267
50.1 The Company has not disclosed the fair values of these financial assets and liabilities as these 51. RECONCILIATION OF MOVEMENT OF LIABILITIES TO CASH FLOWS ARISING FROM
are for short term or reprice over short term. Therefore, their carrying amounts are reasonable FINANCING ACTIVITIES
approximation of fair value.
2023
50.2 Freehold land, buildings on freehold land, roads, bridges and railway sidings, plant and Payable Long term Long term
Own shares Unclaimed Liabilities against financing loan Short
machinery have been carried at revalued amounts determined by professional valuers purchased dividend against right redemption of from from term Accrued Total
for of use assets preference financial Subsidiary borrowings markup
(level 3 measurement) based on their assessment of the market values as disclosed in note cancellation shares institutions Company
7.1. The valuations are conducted by the valuation experts appointed by the Company. The -------------------------------------------------------------- (Rupees in thousand) ---------------------------------------------------------------
valuation experts used a market based approach to arrive at the fair value of the Company’s
As at July 01, 2022 (496,429) 27,569 33,973 1,010 19,367,668 2,000,000 3,572,073 665,122 25,170,986
properties. For revaluation of freehold land fair market value was assessed through inquiries
to real estate agents and property dealers in near vicinity of freehold land. Different valuation Changes from financing cash flows
methods and exercises were adopted according to experience, location and other usage of Dividend paid - (191) - - - - - - (191)
freehold land. Valuer had also considered all relevant factors as well. In case of buildings on Proceeds from short term borrowings - net - - - - - - (2,174,578) - (2,174,578)
Financial charges paid - - - - - - - (2,527,786) (2,527,786)
freehold land, roads, bridges and railway sidings, construction specifications were noted for Lease rentals paid during the year - - (14,611) - - - - - (14,611)
Redemption of preference shares - - - (5) - - - - (5)
each building and structure and new construction rates are applied according to construction Own share purchased for cancellation (194,661) - - - - - - - (194,661)
specifications for current replacement values. After determining current replacement values, Repayments of long term loans
from financial institutions - secured - net - - - - (1,720,571) - - - (1,720,571)
depreciation was calculated to determine the current assessed market value. For revaluation
Total changes from financing cash flows (194,661) (191) (14,611) (5) (1,720,571) - (2,174,578) (2,527,786) (6,632,403)
of plant and machinery, suppliers and different cement plant consultants in Pakistan and
abroad were contacted to collect information regarding current prices of comparable cement Other changes
plant to determine current replacement value. Fair depreciation factor for each item is applied Deferred grant - - - - 185,642 - - - 185,642
according to their physical condition, usage and maintenance. The effect of changes in the Change in running finances and over draft balances - - - - - - (1,397,495) - (1,397,495)
Recognized during the year - - 17,265 - - - - - 17,265
unobservable inputs used in the valuations cannot be determined with certainty, accordingly a Cancelled during the year 691,090 - - - - - - - 691,090
qualitative disclosure of sensitivity has not been presented in these financial statements. Finance cost - - 5,038 - - - - 2,742,703 2,747,741
Total liability related other changes 691,090 - 22,303 - 185,642 - (1,397,495) 2,742,703 2,244,243
As at June 30, 2023 - 27,378 41,665 1,005 17,832,739 2,000,000 - 880,039 20,782,826
2022
Own Payable Long term Long term
shares Unclaimed Liabilities against financing loan Short
purchased dividend against right redemption of from from term Accrued Total
for of use assets preference financial Subsidiary borrowings markup
cancellation shares institutions Company
-------------------------------------------------------------------------- (Rupees in thousand) ---------------------------------------------------------------------------
As at July 01, 2021 - 28,134 - - 13,341,361 1,000,000 1,894,115 260,953 16,524,563
Changes from financing cash flows
Dividend paid - (565) - - - - - - (565)

Long term loan received by subsidiary company - - - - - 1,000,000 - - 1,000,000
Payment of short term borrowings - net - - - - - - 490,990 490,990
Financial charges paid - - - - - - - (1,296,781) (1,296,781)
Lease rentals paid during the year - - (12,425) - - - - - (12,425)
Own share purchased for cancellation (477,778) - - - - - - - (477,778)
Long term loans from financial institutions
- secured - net - - - - 6,898,075 - - - 6,898,075
Total changes from financing cash flows (477,778) (565) (12,425) - 6,898,075 1,000,000 490,990 (1,296,781) 6,601,516
Other changes
Deferred grant - - - - (871,768) - - - (871,768)

Change in running finances and over draft balances - - - - - - 1,186,968 - 1,186,968
Payable against purchase of shares (18,651) - - - - - - - (18,651)
Recognized during the year - - 44,021 - - - - - 44,021
Finance cost - - 2,377 - - - - 1,700,950 1,703,327
Total liability related other changes (18,651) - 46,398 - (871,768) - 1,186,968 1,700,950 2,043,897
As at June 30, 2022 (496,429) 27,569 33,973 - 19,367,668 2,000,000 3,572,073 665,122 25,169,976
268 269
52. CAPITAL MANAGEMENT 53. PROVIDENT FUND TRUST
The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and The following information is based on the latest un-audited financial statements of the Provident
market confidence and to sustain the future development of its business. The Board of Directors Fund Trust:
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 Un-audited Audited
shareholders. 2023 2022
The Company’s objectives when managing capital are:
Size of the fund - total assets 1,312,121 1,114,648
i. to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide
returns for shareholders and benefits for other stakeholders; and Cost of investments made 1,113,860 1,009,704
ii. to provide an adequate return to shareholders. Percentage of investments made 92.80% 97.13%
The Company manages the capital structure in the context of economic conditions and the risk Fair value of investments 1,217,660 1,082,669
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, The break-up of fair value of investments is:
or sell assets to reduce debt.
2023 (Un-audited) 2022 (Audited)
Unit 2023 2022 Rs. in ‘000 Percentage Rs. in ‘000 Percentage
Total debt Rupees in ‘000 21,498,469 26,576,197 Shares in quoted securities 174 0.01% 3,734 0.34%
Less: Cash and bank balances (740,707) (793,576) Term deposit receipts 455,713 37.43% 648,057 59.86%
Government securities - 0.00% 322,274 29.77%
Net debt 20,757,762 25,782,621 Mutual funds 761,773 62.56% 108,604 10.03%
Total Equity Rupees in ‘000 44,913,114 40,559,015 1,217,660 100.00% 1,082,669 100.00%
Total capital employed Rupees in ‘000 65,670,876 66,341,636 Investments out of Provident Fund Trust have been made in accordance with the provisions of section
218 of the Companies Act, 2017 and the rules formulated for this purpose.
Gearing Percentage 31.61% 38.86%
54. NUMBER OF EMPLOYEES
Total debt comprises of long term loans from banking companies, long term loan from Subsidiary
Company, accrued markup on borrowings and short term borrowings. The total and average number of employees of the Company during the year and as at June 30, 2023
and 2022 respectively are as follows:
Total equity includes issued, subscribed and paid-up share capital, capital reserves, accumulated
profits and surplus on revaluation of fixed assets. 2023 2022
Total number of employees as on June 30
There were no changes in the Company’s approach to capital management during the year. - Head office 423 352
- Factory 1,213 1,179
1,636 1,531
Average number of employees during the year

- Head office 384 347
- Factory 1,187 1,154
1,571 1,501
55. CORRESPONDING FIGURES
Corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison.
However, no significant reclassifications have been made.
270 271
56. EVENTS AFTER THE REPORTING DATE
There are no subsequent events after the reporting date other than those mentioned in these
unconsolidated financial statements. CONSOLIDATED
56.1 The Board of Directors, in their meeting held on September 06, 2023 recommended the
shareholders towards purchase / buy-back upto a maximum of 100 million issued ordinary FINANCIAL STATEMENTS
shares of face value Rs. 10/- each at the spot / current share price under section 88 of the
Companies Act 2017 read with the Listed Companies (Buy-Back of Shares) Regulations, 2019. for the Year Ended June 30, 2023
The reduced capital is expected to consolidate equity which will improve earnings per share,
future dividends and break-up value of the Company’s share subsequent to the purchase of
shares.
57. DATE OF AUTHORIZATION FOR ISSUE
These unconsolidated financial statements were authorized for issue by the Board of Directors of the
Company in their meeting held on September 06, 2023.
The Chief Executive Officer is for the time being not available in Pakistan, therefore, these
unconsolidated financial statements are signed by two directors.
272 273
DIRECTORS’ REPORT ON AUDITED CONSOLIDATED at 42 Lawrence Road, Lahore, Pakistan. The Company has not yet commenced its commercial
operations. The financial statements of the Company are for the period from 21 September 2022
FINANCIAL STATEMENTS to June 30, 2023.
The Directors are pleased to present the audited consolidated financial statements of Maple Leaf In compliance with the Companies Act, 2017, all relevant matters of Section 227 have been
Cement Factory Limited (the Holding Company) and its wholly owned subsidiary companies placed in our Standalone Directors’ Report to the shareholders.
Maple Leaf Power Limited and Maple Leaf Industries Limited (collectively referred to as group) for
ACKNOWLEDGEMENT
the year ended June 30, 2023.
The Directors are grateful to the group’s members, financial institutions, customers and
GROUP RESULTS
employees for their cooperation and support. They also appreciate the hard work and
The Group has earned a gross profit of Rupees 17,614 million as compared to Rupees 13,239 dedication of the employees working in different roles.
million of the corresponding year. The Group made an after-tax profit of Rupees 5,771 million
during this period as compared to a profit of Rupees 4,553 million during the corresponding year. For and on behalf of the Board
The overall group financial results are as follows:
June 30, June 30,

2023 2022 CHIEF FINANCIAL OFFICER DIRECTOR
(Rupees in million)
Tariq Sayeed Saigol on behalf of CEO
Sales 62,075 48,520
Lahore: September 06, 2023
Gross Profit 17,614 13,239
Profit from operations 13,074 9,798 The Chief Executive Officer is for the time being not available in Pakistan so the Board has authorized Mr. Tariq Sayeed
Financial charges 2,381 1,658 Saigol - Director to sign the Directors’ Report for the year ended 30th June 2023.
Profit after tax 5,771 4,553
------------- (Rupees) -------------
Earnings per share – basic and diluted 5.38 4.15
SUBSIDIARY COMPANY
MAPLE LEAF POWER LIMITED (MLPL)
Maple Leaf Cement Factory Limited has formed a subsidiary company namely “Maple Leaf
Power Limited (MLPL).(“the Subsidiary”) was incorporated in Pakistan on 15 October 2015 under
the Companies Ordinance, 1984 (Now the Companies Act, 2017) as a public limited company.
The principal objective of MLPL is to develop, design, operate and maintain an electric power
generation plant in connection therewith to engage in the business of generation, sale and supply
of electricity to the Holding Company.
MAPLE LEAF INDUSTRIES LIMITED - (MLIL)
Maple Leaf Industries Limited (“the Subsidiary Company”) is a Limited Company incorporated
in Pakistan on September 21, 2022, as a public limited company under the Companies Act,
2017. The Company is a wholly owned subsidiary of Maple Leaf Cement Factory Limited (“the
Company”) whereas its ultimate parent is Kohinoor Textile Mills Limited (“the Holding Company”).
The Company’s objective is to produce, manufacture, prepare, treat, process, refine, and deal
in all kinds of cement and its allied products. The registered office of the Company is situated
274 275
Following are the Key audit matters:
INDEPENDENT AUDITOR’S REPORT S.No. Key audit matter(s) How the matter was addressed in our audit
1 Capital expenditure Our audit procedures included the following:
To the members of Maple Leaf Cement Factory Limited (Refer to note 20 to the consolidated
• Assessed, on a sample basis, costs
capitalised during the year by comparing the
financial statements) costs capitalised with the relevant underlying
Report on the Audit of the Consolidated Financial Statements documentation, which included purchase
agreements and invoices.
During the current year, the Group
has incurred a significant amount of • Assessed whether the costs capitalised met
Opinion the relevant criteria for capitalization as per
expenditure that has been capitalised.
the applicable accounting and reporting
framework.
We have audited the annexed consolidated financial statements of Maple Leaf Cement Factory Limited We consider the above as a key audit
and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at June matter being significant transaction and • Evaluated management’s estimation of
economic useful lives and residual values by
30, 2023, and the consolidated statement of profit or loss, the consolidated statement of comprehensive event for the Group during the year. considering our knowledge of the business
income, the consolidated statement of changes in equity and the consolidated statement of cash flows and practices adopted in the local industry.
for the year then ended, and notes to the consolidated financial statements, including a summary of • Checked the date of transfer of capital work-
significant accounting policies and other explanatory information. in-progress to operating fixed assets by
examining the completion certificates, on a
sample basis.
In our opinion, consolidated financial statements give a true and fair view of the consolidated financial • Assessed whether the disclosures are made
position of the Group as at June 30, 2023, and of its consolidated financial performance and in accordance with the financial reporting
framework.
its consolidated cash flows for the year then ended in accordance with the accounting and reporting
standards as applicable in Pakistan. 2 Contingent taxation liabilities Our audit procedures included the following:
(Refer to note 19.1 and 33 to the • Obtained and examined details of the pending
tax matters and discussed the same with the
Basis for Opinion consolidated financial statements) Group’s management.
The Group has contingent liabilities in • Circularized confirmations to the Group’s
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in external legal / tax advisors for their views on
respect of various income and sales tax
Pakistan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities matters, which are pending adjudication open tax assessments and matters.
for the Audit of the Consolidated Financial Statements section of our report. We are independent of the before the taxation authorities and the • Examined correspondence of the Group with
Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Courts of law. the relevant authorities including judgments or
Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code), orders passed by the competent authorities in
Contingencies require management to relation to the issues involved or matters which
and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the have similarities with the issues involved.
make judgments and estimates in relation
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
to the interpretation of laws, statutory • Involved in-house tax specialists to assess
rules, regulations and the probability of management’s conclusion on contingent tax
Key Audit Matters outcome and financial impact, if any, on the matters and to evaluate the consistency of such
Group for disclosure and recognition and conclusions with the views of the management
measurement of any provision that may and external legal / tax advisors engaged by the
Key audit matters are those matters that, in our professional judgment, were of most significance in our Group.
audit of the consolidated financial statements of the current period. These matters were addressed in be required against such contingencies.
the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
Due to significance of amounts involved, • Assessed the adequacy and appropriateness of
thereon, and we do not provide a separate opinion on these matters. inherent uncertainties with respect to the disclosures made in respect of such income and
outcome of matters and use of significant sales tax matters.
management judgments and estimates to
assess the same including related financial
impacts, we considered contingent
liabilities relating to income and sales tax,
a key audit matter.
A. F. FERGUSON & Co., Chartered Accountants, A Member Firm of the PwC network
Tel: +92 (42) 3519 9343-50 / Fax: +92 (42) 3519 9351 www.pwc.com/pk
276 277
Information Other than the Unconsolidated and Consolidated Financial Statements and Auditor’s Reports Thereon • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Management is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the consolidated and unconsolidated financial • Conclude on the appropriateness of management’s use of the going concern basis of accounting
statements and our auditor’s reports thereon. and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
Our opinion on the consolidated financial statements does not cover the other information and we do not conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
express any form of assurance conclusion thereon. the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
In connection with our audit of the consolidated financial statements, our responsibility is to read the auditor’s report. However, future events or conditions may cause the Group to cease to continue as a
other information and, in doing so, consider whether the other information is materially inconsistent with going concern.
the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material • Evaluate the overall presentation, structure and content of the consolidated financial statements,
misstatement of this other information, we are required to report that fact. We have nothing to report in including the disclosures, and whether the consolidated financial statements represent the underlying
this regard. transactions and events in a manner that achieves fair presentation.
Responsibilities of Management and the Board of Directors for the Consolidated Financial Statements • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with the accounting and reporting standards as applicable in Pakistan and the We are responsible for the direction, supervision and performance of the group audit. We remain
Companies Act, 2017 and for such internal control as management determines is necessary to enable the solely responsible for our audit opinion.
preparation of consolidated financial statements that are free from material misstatement, whether due
to fraud or error. We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
In preparing the consolidated financial statements, management is responsible for assessing the Group’s that we identify during our audit.
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or We also provide the Board of Directors with a statement that we have complied with relevant ethical
to cease operations, or has no realistic alternative but to do so. requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
The Board of Directors is responsible for overseeing the Group’s financial reporting process.
From the matters communicated with the Board of Directors, we determine those matters that were
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s that a matter should not be communicated in our report because the adverse consequences of doing so
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee would reasonably be expected to outweigh the public interest benefits of such communication.
that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, Other Matter
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these consolidated financial statements. The consolidated financial statements of the Group for the year ended June 30, 2022, were audited by
another firm of auditors whose report, dated September 02, 2022, expressed an unmodified opinion on
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment those consolidated financial statements.
and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements,
The engagement partner on the audit resulting in this independent auditor’s report is Khurram Akbar
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
Khan.
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
A. F. Ferguson & Co.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures Chartered Accountants
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the Lahore
effectiveness of the Group’s internal control.
Date: September 16, 2023
UDIN: AR2023100704Sk2JjT5E
278 279
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AS AT JUNE 30, 2023
2023 2022 2023 2022

EQUITY AND LIABILITIES ASSETS
SHARE CAPITAL AND RESERVES NON - CURRENT ASSETS
Authorised share capital 5 15,000,000 15,000,000 Property, plant and equipment 20 66,746,105 61,480,197
Intangible assets 21 6,946 10,415
Issued, subscribed and paid-up share capital 5 10,733,462 10,983,462 Long term investment 22 - -
Capital reserves 6 6,363,952 6,092,384 Long term loans to employees - secured 23 18,089 19,366
Accumulated profits 28,921,425 22,707,119 Long term deposits 24 58,401 57,600
Surplus on revaluation of fixed assets - net of tax 7 1,900,302 2,503,583
66,829,541 61,567,578
47,919,141 42,286,548
NON - CURRENT LIABILITIES
Long term loans from financial institutions - secured 8 15,233,337 16,747,868

Deferred grant 9 605,926 786,758 CURRENT ASSETS
Long term loan from subsidiary company 10 - -
Long term liability against right of use asset 11 31,408 27,136 Stores, spare parts and loose tools 25 10,462,363 13,325,326
Long term deposits 12 8,214 8,214 Stock-in-trade 26 3,814,163 2,642,065
Deferred taxation 13 8,707,481 5,687,743 Trade debts 27 2,600,988 2,066,212
Retention money 14 1,752,988 - Loans and advances 28 900,460 605,988
Retirement benefits 15 278,492 235,329 Short term investment 29 3,698,556 198,346
Short term deposits and prepayments 30 497,930 557,615
26,617,846 23,493,048 Accrued profit 31 9,118 7,206
CURRENT LIABILITIES Other receivables 32 21,905 52,261
Advance income tax - net of provision 33 - 626,995
Current portion of: Cash and bank balances 34 750,252 817,244
- Long term loans from financial institutions - secured 8 2,599,401 2,619,800
- Deferred grant 9 179,766 184,576 22,755,735 20,899,258
- Liability against right of use assets 11 10,257 6,837
Trade and other payables 16 11,445,190 9,643,549
Provision for taxation 33 21,342 -
Unclaimed dividend 27,378 27,569
Mark-up accrued on borrowings 17 764,955 632,836
Short term borrowings 18 - 3,572,073
15,048,289 16,687,240
CONTINGENCIES AND COMMITMENTS 19
89,585,276 82,466,836 89,585,276 82,466,836
The annexed notes from 1 to 57 form an integral part of these consolidated financial statements.
The Chief Executive Officer is for the time being not available in Pakistan, therefore, these consolidated

280 281
CONSOLIDATED STATEMENT OF CONSOLIDATED STATEMENT OF
PROFIT OR LOSS COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2023 FOR THE YEAR ENDED JUNE 30, 2023
2023 2022 2023 2022

Sales - net 35 62,075,259 48,519,622 Profit after taxation 5,770,762 4,553,125
Cost of sales 36 (44,461,714) (35,280,283) Other comprehensive income
Gross profit 17,613,545 13,239,339 Items that will not be subsequently reclassified to
statement of profit or loss:
Distribution cost 37 (2,001,499) (1,483,876)
Administrative expenses 38 (1,398,611) (977,472) Remeasurement of defined benefit liability (18,830) 1,726
Related tax 6,977 (557)
Net impairment loss on financial assets 27.1 (191,421) (209,920)
(11,853) 1,169
Change in fair value of investment at fair value
Other charges 39 (1,094,867) (830,596)
through OCI 29 263,437 -
(4,686,398) (3,501,864)
Tax effect of change in fair value of investment at fair
value through OCI (65,859) -
Other income 40 147,320 60,209
197,578 -
Profit from operations 13,074,467 9,797,684
Surplus on revaluation of fixed assets:
Effect on deferred tax due to change in effective tax rate (147,884) -
Finance cost 41 (2,380,827) (1,658,272)
Items that may be subsequently reclassified to
statement of profit or loss: - -
Taxation 42 (4,922,878) (3,586,287)
Other comprehensive income for the year 37,841 1,169
Profit after taxation 5,770,762 4,553,125
Total comprehensive income for the year 5,808,603 4,554,294
Earnings per share - basic and diluted 43 5.38 4.15
DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR
282 283
CONSOLIDATED STATEMENT OF CASH FLOWS CONSOLIDATED STATEMENT OF
FOR THE YEAR ENDED JUNE 30, 2023 CHANGES IN EQUITY
2023 2022
Note (Rupees in thousand) FOR THE YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for:
Revenue
Depreciation 20.1.1 3,779,877 3,555,760 Capital Reserves
Reserve
Amortization 21.1 3,469 2,388 Share Total
Surplus on
Provision for expected credit loss 27.1 180,000 50,049 Capital Share
Capital Own shares
FVOCI revaluation of Accumulated Equity
Bad debts written off 27.1 11,421 159,871 redemption purchase for Sub - total
premium reserve fixed assets - profits
reserve cancellation
Advances written off 38 2,509 9,209 net of tax
Provision for Workers' Profit Participation Fund 16.2 124,176 427,064 ---------------------------------------------------------------------- Rupees in thousand ------------------------------------------------------------------
Provision for Workers' Welfare Fund 16.3 220,943 112,811
(Gain) / Loss on disposal of property, plant and equipment 40 (39,568) 3,043 As at July 01, 2021 10,983,462 6,060,550 528,263 - - 6,588,813 3,135,460 17,634,595 38,342,330
Exchange Gain on cash & cash equivalents (7,847) (3,976) Total comprehensive income for the year
Gain on re-measurement of short term investments at fair value 39 6,773 25,802
Notional interest on unwinding of retention money payable 41 2,790 27,828 Profit for the year ended June 30, 2022 - - - - - - - 4,553,125 4,553,125
Other comprehensive income for the year ended
Notional interest on unwinding of payable to government authority 41 216 9,871 June 30, 2022 - - - - - - - 1,169 1,169
Retirement benefits 15 78,211 57,340
- - - - - - - 4,554,294 4,554,294
Profit on bank deposits 40 (55,623) (24,598)
Finance cost 41 2,377,821 1,620,573 Own shares purchased during the year for cancellation - - - (496,429) - (496,429) - - (496,429)
Cash generated from operations before working capital changes 17,378,808 14,172,447 Incremental depreciation from surplus on revaluation
Effect on cash flows due to working capital changes of fixed assets - net of tax - - - - - - (516,244) 516,244 -
(Increase) / decrease in current assets Reversal of revaluation surplus on disposal of

Stores, spare parts and loose tools 2,862,963 (3,277,599) fixed assets - net of tax - - - - - - (1,986) 1,986 -
Stock-in-trade (1,172,094) (556,202) Effect on deferred tax due to change in effective tax rate
Trade debts (726,197) (596,428) due to proportion of local and export sales - - - - - - (113,647) - (113,647)
Loans and advances (296,981) (123,056)
Balance as at June 30, 2022 10,983,462 6,060,550 528,263 (496,429) - 6,092,384 2,503,583 22,707,119 42,286,548
Short term deposits and prepayments 59,685 (317,554)
Other receivables 30,356 113,574 Own shares purchased during the year for cancellation (250,000) - (422,439) 496,429 - 73,990 - - (176,010)
757,732 (4,757,265) Total comprehensive income for the year

Decrease in current liabilities
Profit for the year ended June 30, 2023 - - - - - - - 5,770,762 5,770,762
Trade and other payables 1,651,913 753,762 Other comprehensive income for the year ended
2,409,645 (4,003,503) June 30, 2023 - - - - 197,578 197,578 (147,884) (11,853) 37,841
Net cash generated from operations 19,788,453 10,168,944 - - - - 197,578 197,578 (147,884) 5,758,909 5,808,603
Decrease/(increase) in long term loans to employees 1,277 (2,362) Incremental depreciation from surplus on revaluation
Increase in long term deposits to suppliers (801) (298) of fixed assets - net of tax - - - - - - (455,012) 455,012 -
Increase in retention money payable 1,750,198 - Reversal of revaluation surplus on disposal of
Retirement benefits paid (53,881) (43,319) fixed assets - net of tax - - - - - - (385) 385 -
Decrease in payable to Government Authority - (22,965)
Workers' Profit Participation Fund paid (110,000) (91,231)
Workers' Welfare Fund paid (66,952) (23,185) Balance as at June 30, 2023 10,733,462 6,060,550 105,824 - 197,578 6,363,952 1,900,302 28,921,425 47,919,141
Taxes paid - net of refund (1,461,571) (600,384)
CASH FLOWS FROM INVESTING ACTIVITIES
The Chief Executive Officer is for the time being not available in Pakistan, therefore, these consolidated financial statements are signed by two directors.
Capital expenditure (9,080,092) (15,875,332)
Intangible assets acquired - (6,786)
Proceeds from disposal of property, plant and equipment 91,140 30,583
Short term investment 29 (3,243,546) (75,000)
Profit on bank deposits received 53,712 23,528
Net cash used in investing activities (12,178,786) (15,903,007)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments) / Proceeds from long term loans from financial institutions
- secured - net (1,720,571) 6,898,075
Short term borrowings - net 18 (2,174,578) 490,990
Finance cost paid (2,240,664) (1,225,521)
Lease rentals paid (14,611) (12,425)
Own share purchased for cancellation (194,661) (477,778)
Dividend paid (191) (565)
Net cash (used in) / generated from financing activities (6,345,281) 5,672,776
Net increase / (decrease) in cash and cash equivalents 1,322,656 (845,031)
Exchange gain on cash & cash equivalents 7,847 3,976
Cash and cash equivalents at end of the year 44 750,252 (580,251)
The Chief Executive Officer is for the time being not available in Pakistan, therefore, these consolidated financial statements are
signed by two directors. DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR

284 285
NOTES TO THE CONSOLIDATED - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered
Accountants of Pakistan as notified under the Companies Act, 2017; and
FINANCIAL STATEMENTS - Provision of and directives issued under the Companies Act, 2017.
FOR THE YEAR ENDED JUNE 30, 2023
Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS,
1. REPORTING ENTITY the provisions of and directives issued under the Companies Act, 2017 have been followed.
1.1 Maple Leaf Cement Factory Limited (“the Company”) was incorporated in Pakistan on April
13, 1960 under the Companies Act, 1913 (now the Companies Act, 2017) as a public company 2.2 Basis of measurement
limited by shares. The Company is listed on Pakistan Stock Exchange. The registered office
of the Company is situated at 42-Lawrence Road, Lahore, Pakistan. The cement factory is These consolidated financial statements have been prepared under the historical cost
located at Iskanderabad District Mianwali in the province of Punjab. The principal activity convention except as otherwise stated in these consolidated financial statements.
of the Company is production and sale of cement. The Company is a subsidiary of Kohinoor
Textile Mills Limited (“the Ultimate Holding Company”). 2.3 Functional and presentation currency
1.2 Maple Leaf Power Limited - (“the Subsidiary Company”) These consolidated financial statements have been prepared in Pak Rupees (“Rs.”) which is
the Group’s functional currency.
Maple Leaf Power Limited (“the Subsidiary Company”) was incorporated in Pakistan on
October 15, 2015 as a public limited Company under the Companies Ordinance, 1984 (now Figures in the consolidated financial statements have been rounded-off to the nearest
Companies Act, 2017). The Subsidiary Company has been established to set up and operate thousand Rupees except stated otherwise.
a 40 megawatt coal fired power generation plant located at Iskanderabad, District Mianwali,
Punjab, Pakistan for generation of electricity. The Subsidiary Company’s registered office is 2.4 Use of estimates and judgments
located at 42 - Lawrence Road, Lahore. The principal objective of the Subsidiary Company is
to develop, design, operate and maintain electric power generation plant and in connection The preparation of consolidated financial statements in conformity with approved accounting
therewith to engage in the business of generation, sale and supply of electricity. 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 Subsidiary Company was granted electricity generation license from National Electric The estimates and associated assumptions are based on historical experience and various
and Power Regulatory Authority (NEPRA) on December 20, 2016. The Subsidiary Company other factors that are believed to be reasonable under circumstances, and the results of which
entered into a Power Purchase Agreement (“PPA”) and Steam Purchase Agreement with the form the basis for making judgment about carrying value of assets and liabilities that are not
Holding Company on July 04, 2017 and October 31, 2019, respectively, which are valid for 20 readily apparent from other sources. Actual results may differ from these estimates.
years.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
1.3 Maple Leaf Industries Limited - (“the Subsidiary Company”) 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
Maple Leaf Industries Limited (“the Subsidiary Company”) is a Limited Company incorporated both current and future periods.
in Pakistan on September 21, 2022 as a public limited under Companies Act, 2017. The
Company is wholly owned subsidiary of Maple Leaf Cement Factory Limited (“the Company”) The areas where assumptions and estimates are significant to the Group’s consolidated
whereas its ultimate parent is Kohinoor Textile Mills Limited (“the Holding Company”). The financial statements or where judgment was exercised in application of accounting policies
Company’s objective is to produce, manufacture, prepare, treat, process, refine, and deal in are as follows:
all kinds of cement and its allied products. The registered office of the Company is situated at
42-Lawrence Road, Lahore, Pakistan. The Company has not yet commenced its commercial - Provision for employee benefits - Note 3.1
operations. The financial statements of the Company are for the period from 21 September
2022 to June 30, 2023. - Contingent taxation liabilities - Note 3.2
The Holding Company and the Subsidiary Company are collectively referred to as “the Group” - Revaluation of property, plant and equipment - Note 3.4
in these consolidated financial statements.
- Useful lives and residual values of property, plant & equipment - Note 3.4.1
2. BASIS OF PREPARATION
- Provision for slow moving stores, spare parts & loose tools - Note 3.6
2.1 Statement of compliance
- Net realisable value of stock-in-trade - Note 3.7
These financial statements have been prepared in accordance with the accounting and
reporting standards as applicable in Pakistan. The accounting and reporting standards - Expected credit loss against trade debts, deposits, advances and other receivables - Note
applicable in Pakistan comprise of: 3.9
- International Financial Reporting Standards (IFRS) issued by the International Accounting - Recoverable amount of assets and cash generating units - Note 3.9
Standards Board (IASB) as notified under the Companies Act 2017;
- Provisions and contingencies - Note 3.21
286 287
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of the defined benefit obligations. Actuarial gains and losses are charged to the consolidated
statement of profit or loss immediately in the period when these occur.
The significant accounting policies set out below have been consistently applied to all periods
presented in these consolidated financial statements. 3.2 Taxation
3.1 Employee benefits Income tax expense comprises current and deferred tax. Income tax is recognized in the
consolidated statement of profit or loss except to the extent that it relates to items recognized
Defined contribution plan directly in equity or other comprehensive income, in which case it is recognized in consolidated
statement of equity or consolidated statement of comprehensive income as the case may be.
The Group operates a defined contributory approved Provident Fund Trust for all its employees.
Equal monthly contributions are made both by the Group and employees at the rate of 10% of Current
the basic salary to the Provident Fund Trust. Obligation for contributions to defined contribution
plan is expensed as the related service is provided. Provision of current tax is based on the taxable income for the year determined in accordance
with the prevailing law for taxation of income. The charge for current tax is calculated using
Defined benefit plan prevailing tax rates or tax rates expected to apply to profit for the year if enacted after taking into
account tax credits, rebates and exemptions, if any. The charge for current tax also includes
The Group operates approved funded gratuity scheme for all its full time permanent workers adjustments, where considered necessary, to provision for tax made in previous years arising
who have completed the minimum qualifying period of service of one year. Provision is made from assessments framed during the year for such years. Where there is uncertainty in income
annually to cover obligations under the scheme on the basis of actuarial valuation and is tax accounting i.e. when it is not probable that the tax authorities will accept the treatment, the
charged to consolidated statement of profit or loss. impact of the uncertainty is measured and accounted for using either the most likely amount or
the expected value method, depending on which method better predicts the resolution of the
The Group’s net obligation in respect of defined benefit plan is calculated by estimating uncertainty. Such judgements are reassessed whenever circumstances have changed or there
the amount of future benefit that employees have earned in the current and prior periods, is new information that affects the judgements. Where, at the assessment stage, the taxation
discounting that amount and deducting the fair value of any plan assets. authorities have adopted a different tax treatment and the Group considers that the most likely
outcome will be in favour of the Group, the amounts are shown as contingent liabilities. In making
Calculation of defined benefit obligation is performed annually by a qualified actuary using a judgment and / or estimate relating to probability of outcome, the management considers laws,
the projected unit credit method for valuation. The latest valuation was carried out at June 30, statutory rules, regulations and their interpretations. Where, based on management’s estimate, a
2023. When the calculation results in a potential asset for the Group, the recognized asset is provision is required, the same is recorded in the consolidated financial statements.
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 Deferred
economic benefits, consideration is given to any applicable minimum funding requirements.
Deferred tax is accounted for using the liability method in respect of all temporary differences
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, arising from differences between the carrying amount of assets and liabilities in the consolidated
the return on plan assets (excluding interest) and the effect of the asset ceiling (if, any excluding financial statements and the corresponding tax bases used in the computation of the taxable
interest), are recognized immediately in OCI. The Group determines the net interest expense profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and
(income) on the net defined benefit liability (asset) for the period by applying the discount rate deferred tax assets are recognized to the extent that it is probable that future taxable profits
used to measure the defined benefit obligation at beginning of the annual period to the then- will be available against which the deductible temporary differences, unused tax losses and
net defined benefit liability (asset), taking into account any changes in the net defined benefit tax credits can be utilized.
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 consolidated Deferred tax assets and liabilities are calculated at the rates that are expected to apply to
statement of profit or loss. the period when the asset is realized or the liability is settled, based on the tax rates and tax
laws that have been enacted or substantively enacted by the reporting date. Deferred tax is
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in charged or credited to the consolidated statement of profit or loss, except in the case of items
benefit that relates to past service or the gain or loss on curtailment is recognized immediately charged or credited to equity or other comprehensive income, in which case it is included in
in consolidated statement of profit or loss. The Group recognizes gains and losses on the the consolidated statement of changes in equity or consolidated statement of comprehensive
settlement of a defined benefit plan when the settlement occurs. income as the case may be.
Liability for employees’ compensated absences - other long term benefits 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
The Group accounts for the liability in respect of employees’ compensated absences in the year enacted or substantively enacted by the consolidated statement of financial position date.
in which these are earned. Provision to cover the obligations is made using the current salary
level of employees. The unutilized leaves are accumulated subject to a maximum of 90 days. The 3.3 Leases
unutilized accumulated leaves can be enchased at the time the employee leaves Group service.
The Group uses the actuarial valuations carried out using the projected unit credit method for The Group is the lessee
valuation of its accumulated compensating absences. The latest valuation was carried out on June
30, 2023. Provisions are made annually to cover the obligation for accumulating compensated At inception of a contract, the Group assesses whether a contract is, or contains, a lease based
absences based on actuarial valuation and are charged to the consolidated statement of profit or on whether the contract conveys the right to control the use of an identified asset for a period
loss. The amount recognized in the statement of financial position represents the present value of time in exchange for consideration. Lease terms are negotiated on an individual basis and
contain a wide range of different terms and conditions.
288 289
At initial recognition, leases are recognised as a right-of-use asset and a corresponding liability Major renewals and improvements to an item of property, plant and equipment are recognized
at the date at which the leased asset is available for use by the Group. in the carrying amount of the item if it is probable that the embodied future economic benefits
will flow to the Group and the cost of renewal or improvement can be measured reliably. The
The lease liability is initially measured at the present value of the lease payments that are not cost of the day-to-day servicing of property, plant and equipment are recognized in statement
paid at the commencement date, discounted using the interest rate implicit in the lease, or if of consolidated statement of profit or loss as incurred.
that rate cannot be readily determined, the Group’s incremental borrowing rate.
Gains / losses on disposal or retirement of tangible assets, if any, are taken to consolidated
Lease payments include fixed payments, variable lease payments that are based on an index or a statement of profit or loss.
rate amounts expected to be payable by the lessee under residual value guarantees, the exercise
price of a purchase option if the lessee is reasonably certain to exercise that option, payments Depreciation is calculated at the rates specified in note 20.1 on reducing balance method
of penalties for terminating the lease, if the lease term reflects the lessee exercising that option, except that straight-line method is used for the plant and machinery and buildings relating
less any lease incentives receivable. The extension and termination options are incorporated in to dry process plant after deducting residual value. Depreciation on additions to property,
determination of lease term only when the Group is reasonably certain to exercise these options. plant and equipment is charged from the month in which the item becomes available for use.
Depreciation is discontinued from the month in which it is disposed or classified as held for
The lease liability is subsequently measured at amortised cost using the effective interest disposal.
rate method. It is remeasured when there is a change in future lease payments arising from
a change in fixed lease payments or an index or rate, change in the Group’s estimate of the Increase in the carrying amounts arising on revaluation of land, building, road bridges
amount expected to be payable under a residual value guarantee, or if the Group changes and railway sidings and plant and machinery is recognised, in consolidated statement of
its assessment of whether it will exercise a purchase, extension or termination option. The comprehensive income and accumulated in reserves in consolidated statement of changes
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is in equity. To the extent that the increase reverses a decrease previously recognised in profit or
recorded in the consolidated statement of profit or loss if the carrying amount of right-of-use loss, the increase is first recognised in profit or loss. Decreases that reverse previous increases
asset has been reduced to zero. of the same asset are first recognised in other comprehensive income to the extent of the
remaining surplus attributable to the asset; all other decreases are charged to profit or loss.
The right-of-use asset is initially measured based on the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial The Group reviews the useful lives and residual values of property, plant and equipment
direct costs incurred and an estimate of costs to dismantle and remove the underlying asset annually by considering expected pattern of economic benefit that the Group expects to drive
or to restore the underlying asset or the site on which it is located, less any lease incentive from the item and the maximum period up to which such benefits are expected to be available.
received. The right-of use asset is depreciated on a straight line method over the lease term Any change in estimates in future years might affect the carrying amounts of the respective
as this method most closely reflects the expected pattern of consumption of future economic items of property, plant and equipment with a corresponding effect on the depreciation charge
benefits. The right-of-use asset is reduced by impairment losses, if any, and adjusted for certain and impairment.
remeasurements of the lease liability.
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each
Payments associated with short-term leases and all leases of low-value assets are recognised consolidated statement of financial position date.
on a straight-line basis as an expense in consolidated statement of profit or loss. Short-term
leases are leases with a lease term of 12 months or less without a purchase option. 3.5 Intangible assets
3.4 Property, plant and equipment 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
Tangible assets except freehold land, buildings on freehold land, roads, bridges and railway at the end of each annual reporting period, with effect of any changes in estimate being
sidings, plant and machinery are stated at cost less accumulated depreciation and impairment accounted for on a prospective basis.
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 Finite intangible assets are amortized using straight-line method over a period of usage.
any subsequent accumulated depreciation and impairment losses while freehold land is Amortization on additions to intangible assets is charged from the month in which an asset is
stated at revalued amount being the fair value at the date of revaluation, less any subsequent put to use and on disposal up to the month of disposal.
impairment losses, if any. Surplus on revaluation is booked by restating gross carrying amounts
of respective assets being revalued, proportionately to the change in their carrying amounts 3.6 Stores, spare parts and loose tools
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 These are stated at lower of cost and net realizable value. Cost is determined using the
taking into account accumulated impairment losses, if any. The surplus on revaluation of fixed weighted average method. Items in transit are valued at cost comprising invoice value plus
assets to the extent of the annual incremental depreciation based on the revalued carrying other charges paid thereon.
amount of the asset 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 The Group reviews the stores, spare parts and loose tools for possible impairment on an
to retained earnings. All transfers to / from surplus on revaluation of fixed assets account are annual basis. Any change in estimates in future years might affect the carrying amounts of
net of applicable deferred income tax. the respective items of stores, spare parts and loose tools with a corresponding effect on the
provision.
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.
290 291
3.7 Stock-in-trade These assets are subsequently measured at amortized cost using the effective interest method.
The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains
Stocks are valued at the lower of cost and net realizable value. Cost is determined as follows: and losses and impairment are recognized in the consolidated statement of profit or loss. Any
gain or loss on derecognition is also recognized in the consolidated statement of profit or loss.
Raw material at weighted average cost
Packing material at weighted average cost Financial assets measured at amortized cost comprise of cash and bank balances, deposits,
Work in process at weighted average manufacturing cost loan to employees, accrued profit, term deposit receipts, trade debts and other receivables.
Finished goods at weighted average manufacturing cost
Debt Instrument - FVOCI
Average manufacturing cost in relation to work in process and finished goods consists of
direct material, labour and a proportion of appropriate manufacturing overheads. A debt investment is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:
The Group 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 - it is held within a business model whose objective is achieved by both collecting contractual
value is the estimated selling price in the ordinary course of business, less the estimated costs cash flows and selling financial assets; and
of completion and estimated costs necessary to make the sale.
- its contractual terms give rise on specified dates to cash flows that are solely payments of
Further, the Group’s certain stock items [i.e. raw materials (limestone, clay and gypsum), work- principal and interest on the principal amount outstanding.
in-process (clinker) and stores and spares (coal)] are stored in purpose-built sheds, stockpiles
and silos. As the weighing of these stock items is not practicable, the management assesses These assets are subsequently measured at fair value. Interest income calculated using the
the reasonableness of the on-hand inventory by obtaining measurement of stockpiles and effective interest method, foreign exchange gains and losses and impairment are recognized
converting these measurements into unit of volume by using angle of repose and bulk density in the consolidated statement of profit or loss. Other net gains and losses are recognized in
values. OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
However, the Group has no such instrument at the reporting date.
3.8 Financial instruments
Equity Instrument - FVOCI
3.8.1 Recognition and initial measurement
On initial recognition of an equity investment that is not held for trading, the Group may
All financial assets or financial liabilities are initially recognized when the Group becomes a irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This
party to the contractual provisions of the instrument. election is made on an investment-by-investment basis.
A financial asset (unless it is a trade receivable without a significant financing component) or These assets are subsequently measured at fair value. Dividends are recognized as income
financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction in profit or loss unless the dividend clearly represents a recovery of part of the cost of the
costs that are directly attributable to its acquisition or issue. A receivable without a significant investment. Other net gains and losses are recognized in OCI and are never reclassified to
financing component is initially measured at the transaction price. The Group follows profit or loss.
settlement date accounting for recognition of financial assets acquired through regular way
trade. Fair value through profit or loss (FVTPL)
3.8.2 Classification and subsequent measurement All financial assets not classified as measured at amortized cost or FVOCI as described above
are measured at FVTPL.
Financial assets
On initial recognition, the Group may irrevocably designate a financial asset that otherwise
On initial recognition, a financial asset is classified as measured at amortized cost, fair value meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so
through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets are not reclassified subsequent to their initial recognition unless the Group These assets are subsequently measured at fair value. Net gains and losses, including any
changes its business model for managing financial assets, in which case all affected financial interest or dividend income, are recognized in profit or loss account. Short term investments
assets are reclassified on the first day of the first reporting period following the change in the include listed equities that are classified as fair value through profit or loss account at the
business model. reporting date.
Amortized cost Financial assets – Business model assessment:
A financial asset is measured at amortized cost if it meets both of the following conditions and For the purposes of the assessment, ‘principal’ is defined as the fair value of the financial asset
is not designated as at FVTPL: on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for
the credit risk associated with the principal amount outstanding during a particular period of
- it is held within a business model whose objective is to hold assets to collect contractual time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as
cash flows; and well as a profit margin.
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
292 293
In assessing whether the contractual cash flows are solely payments of principal and interest, Indicators that there is no reasonable expectation of recovery include, amongst others,
the Group considers the contractual terms of the instrument. This includes assessing whether the failure of a debtor to engage in a repayment plan with the Group, and a failure to make
the financial asset contains a contractual term that could change the timing or amount of contractual payments for a period of greater than one year past due (considered as default).
contractual cash flows such that it would not meet this condition. In making this assessment,
the Group considers: 3.9 Impairment
- contingent events that would change the amount or timing of cash flows; Financial assets
- terms that may adjust the contractual coupon rate, including variable-rate features; The Group recognizes loss allowances for ECLs on:
- prepayment and extension features; and - financial assets measured at amortized cost;
- debt investments measured at FVOCI; and
- terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse - contract assets.
features).
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the
Financial liabilities following, which are measured at 12-month ECLs:
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability - debt securities that are determined to have low credit risk at the reporting date; and
is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated - other debt securities and bank balances for which credit risk (i.e. the risk of default
as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net occurring over the expected life of the financial instrument) has not increased significantly
gains and losses, including any interest expense, are recognized in the consolidated statement since initial recognition.
of profit or loss. Other financial liabilities are subsequently measured at amortized cost using
the effective interest method. Interest expense and foreign exchange gains and losses are 12-month ECLs are the portion of ECLs that result from default events that are possible within
recognized in the consolidated statement of profit or loss. Any gain or loss on derecognition is the 12 months after the reporting date (or a shorter period if the expected life of the instrument
also recognized in the consolidated statement of profit or loss. is less than 12 months).
Financial liabilities comprise trade and other payables, long term loan from subsidiary, long term When determining whether the credit risk of a financial asset has increased significantly
loans from financial institutions (including current portion), markup accrued on borrowings, since initial recognition and when estimating ECLs, the Group considers reasonable and
unclaimed dividend, retention money payable, long term deposits and short term borrowings. supportable information that is relevant and available without undue cost or effort. This includes
both quantitative and qualitative information and analysis, based on the Group’s historical
3.8.3 Derecognition experience and informed credit assessment and including forward-looking information.
Financial assets The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than past due for a reasonable period of time. Lifetime ECLs are the ECLs that result
The Group derecognizes a financial asset when the contractual rights to the cash flows from from all possible default events over the expected life of a financial instrument. 12-month ECLs
the financial asset expire, or it transfers the rights to receive the contractual cash flows in a are the portion of ECLs that result from default events that are possible within the 12 months
transaction in which substantially all of the risks and rewards of ownership of the financial after the reporting date (or a shorter period if the expected life of the instrument is less than 12
asset are transferred or in which the Group neither transfers nor retains substantially all of the months). The maximum period considered when estimating ECLs is the maximum contractual
risks and rewards of ownership and it does not retain control of the financial asset. period over which the Group is exposed to credit risk.
The Group might enter into transactions whereby it transfers assets recognized in its statement The Group has elected to measure loss allowances for trade debts using IFRS 9 simplified
of financial position, but retains either all or substantially all of the risks and rewards of the approach and has calculated ECLs based on lifetime ECLs. The Group has established a
transferred assets. In these cases, the transferred assets are not derecognized. matrix that is based on the Group’s historical credit loss experience, adjusted for forward-
looking factors specific to the debtors and the economic environment. When determining
Financial liabilities whether the credit risk of a financial asset has increased significantly since initial recognition
and when estimating ECLs, the Group considers reasonable and supportable information
The Group derecognizes a financial liability when its contractual obligations are discharged that is relevant and available without undue cost or effort. This includes both quantitative and
or cancelled, or expire. The Group also derecognizes a financial liability when its terms are qualitative information and analysis, based on the Group’s historical experience and informed
modified and the cash flows of the modified liability are substantially different, in which credit assessment including forward-looking information.
case a new financial liability based on the modified terms is recognized at fair value. On
derecognition of a financial liability, the difference between the carrying amount extinguished Loss allowances for financial assets measured at amortised cost are deducted from the Gross
and the consideration paid (including any non-cash assets transferred or liabilities assumed) carrying amount of the assets.
is recognized in consolidated statement of profit or loss.
The Gross carrying amount of a financial asset is written off when the Group has no reasonable
3.8.4 Trade Debts expectations of recovering of a financial asset in its entirety or a portion thereof. The Group
individually makes an assessment with respect to the timing and amount of write-off based
These are classified at amortized cost and are initially recognised when they are originated on whether there is a reasonable expectation of recovery. The Group expects no significant
and measured at fair value of consideration receivable. Trade debts are written off where there recovery from the amount written off. However, financial assets that are written off could still be
is no reasonable expectation of recovery. subject to enforcement activities in order to comply with the Group’s procedures for recovery
of amounts due.
294 295
Non-financial assets 3.13 Contract liabilities
The carrying amount of the Group’s non-financial assets, other than inventories and deferred A contract liability is the obligation of the Group to transfer goods or services to a customer
tax assets are reviewed at each reporting date to determine whether there is any indication of for which the Group has received consideration (or an amount of consideration is due) from
impairment. If any such indication exists, then the asset’s recoverable amount is estimated. the customer. If a customer pays consideration before the Group transfers goods or services
The recoverable amount of an asset or cash generating unit is the greater of its value in use to the customer, a contract liability is recognized when the payment is made or the payment
and its fair value less cost to sell. In assessing value in use, the estimated future cash flows are is due (whichever is earlier). Contract liabilities are recognized as revenue when the Group
discounted to their present values using a pre-tax discount rate that reflects current market performs under the contract. It also includes refund liabilities arising out of customers‘ right
assessments of the time value of money and the risks specific to the asset or cash generating to claim amounts from the Group on account of contractual delays in delivery of performance
unit. obligations and incentive on target achievements.
An impairment loss is recognized if the carrying amount of the assets or its cash generating 3.14 Foreign currency translations
unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit
or loss. Impairment losses recognized in respect of cash generating units are allocated to Transactions in foreign currencies are initially recorded at the rates of exchange ruling on
reduce the carrying amounts of the assets in a unit on a pro rata basis. Impairment losses the dates of transactions. Monetary assets and liabilities denominated in foreign currencies
recognized in prior periods are assessed at each reporting date for any indications that the are retranslated into Pak Rupees at exchange rates prevailing on the statement of financial
loss has decreased or no longer exists. An impairment loss is reversed if there has been a position date. All exchange differences are charged to consolidated statement of profit or loss.
change in the estimates used to determine the recoverable amount. An impairment loss is
reversed only to that extent that the asset’s carrying amount after the reversal does not exceed 3.15 Borrowings
the carrying amount that would have been determined, net of depreciation and amortization, if
no impairment loss had been recognized. 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
3.10 Off setting of financial instruments 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
Financial assets and liabilities are off-set and the net amount reported in the statement of use. All other borrowing costs are charged to consolidated statement of profit or loss in the
financial position when there is a legally enforceable right to offset the recognized amounts period in which these are incurred.
and there is an intention and ability to settle on a net basis, or realize the asset and settle the
liability simultaneously. 3.16 Provisions
3.11 Cash and cash equivalents Provisions are recognized when the Group 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
Cash and cash equivalents for the purpose of statement of cash flows comprise cash in hand, the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at
running finance and cash at banks. each consolidated statement of financial position date and adjusted to reflect the current best
estimate.
3.12 Revenue recognition
3.17 Earnings per share (EPS)
Revenue from contracts with customers is recognised, when control of goods is transferred
to the customers, at an amount that reflects the consideration to which the Group expects to Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
be entitled in exchange for those goods excluding sales taxes and trade discounts. Specific Group by weighted average number of ordinary shares outstanding during the year.
revenue and other income recognition policies are as follows:
Diluted EPS is calculated by adjusting basic EPS with weighted average number of ordinary
3.12.1 Sale of goods 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
Revenue from sale of goods is recognized at the point in time when control of the asset is of the Group that would result from conversion of all dilutive potential ordinary shares into
transferred to the customer which on the basis of current agreement with majority of the ordinary shares.
customers, is when the goods are dispatched to customers and in very few cases when goods
are delivered to the customers, in case of local sales. Further in case of export sale, control is 3.18 Dividend to ordinary shareholders
transferred when goods are shipped to the customers or received at customer’s country port.
Dividend to ordinary shareholders is recognized as a deduction from accumulated profit and
3.12.2 Dividends as a liability in the Group’s consolidated statement of financial position in the year in which the
dividends are approved by the Board of Directors or the Group’s shareholders as the case may
Dividend income is recognized when the Group’s right to receive the dividend is established. be.
3.12.3 Interest income 3.19 Mark-up bearing borrowings
Interest income is recognised as it accrues under the effective interest method using the rate Mark-up bearing borrowings are recognized initially at cost representing the fair value of
that exactly discounts estimated future cash receipts through the expected life of the financial consideration received less attributable transaction costs. Subsequent to initial recognition,
asset to the gross carrying amount of the financial asset. mark-up bearing borrowings are stated at original cost less subsequent repayments, while the
296 297
difference between the original recognized amounts (as reduced by periodic payments) and 4.2 New accounting standards / amendments and IFRS interpretations that are not yet
redemption value is recognized in the consolidated statement of profit or loss over the period effective
of borrowings on an effective rate basis. The borrowing cost on qualifying asset is included in
the cost of related asset. There are certain standards, amendments to the accounting standards and interpretations
that are mandatory for the Group’s accounting periods beginning on or after July 01, 2023 but
3.20 Share Capital are considered not to be relevant to the Group’s operations and are, therefore, not detailed in
these financial statements, except for the following:
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
ordinary shares are recognized as a deduction from equity, net of any tax effects. 4.2.1 Amendments to IAS 1, Classification of liabilities as current or non-current
3.21 Contingent liabilities The narrow-scope amendments to IAS 1 Presentation of Financial Statements, effective for
accounting periods beginning on or after January 01, 2023, clarify that liabilities are classified
A contingent liability is disclosed when: as either current or non-current, depending on the rights that exist at the end of the reporting
period. Classification is unaffected by the expectations of the entity or events after the reporting
- there is a possible obligation that arises from past events and whose existence will be date (e.g. the receipt of a waiver or a breach of covenant). The amendments also clarify what
confirmed only by the occurrence or non-occurrence of one or more uncertain future events IAS 1 means when it refers to the settlement of a liability.
not wholly within the control of the Group; or
The amendments could affect the classification of liabilities, particularly for entities that
- there is present obligation that arises from past events but it is not probable that an outflow of previously considered management’s intentions to determine classification and for some
resources embodying economic benefits will be required to settle the obligation or the amount liabilities that can be converted into equity.
of the obligation cannot be measured with sufficient reliability.
These amendments are not expected to have a material impact on the Group’s financial
3.22 Segment Reporting statements when they become effective.
A segment is a distinguishable component of the Group that is engaged either in providing 4.2.2 Amendments to IAS 1 and IFRS Practice Statement 2, Disclosure of Accounting
products or services (business segment), or in providing products or services within a particular Policies.
economic environment (geographical segment), which is subject to risk and rewards that are
different from other segments. Operating segment are reported in a manner consistent with The IASB amended IAS 1 to require entities to disclose their material rather than their significant
the internal reporting provided to the chief operating decision maker. The chief operating accounting policies. The amendments define what is ‘material accounting policy information’
decision maker who is responsible for allocating resources and assessing performance of and explain how to identify when accounting policy information is material. They further clarify
the operating segments, has been identified as the Board of Director of the Group that makes that immaterial accounting policy information does not need to be disclosed. If it is disclosed,
strategic decisions. it should not obscure material accounting information.
3.23 Government Grant To support this amendment, the IASB also amended IFRS Practice Statement 2 Making
Materiality Judgements to provide guidance on how to apply the concept of materiality to
The Group follows deferral method of accounting for government grant related to subsidized accounting policy disclosures.
long term loan. Government grant is initially recognized as deferred grant and measured as
the difference between the initial carrying value of the long term loan recorded at market rate The above mentioned amendments are effective for accounting periods beginning on or after
(i.e. fair value of the long term loan in this case) and the proceeds of subsidized long term January 01, 2023.
loan received. In subsequent years, the grant is recognized in consolidated statement of profit
or loss, in line with the recognition of interest expenses the grant is compensating and is The Group is in the process of assessing the impact of this amendment on the Group’s financial
presented as a reduction of related interest expense. statements.
3.24 Own shares purchased for cancellation 4.2.3 Amendments to IAS 12, Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
When shares recognized as equity are repurchased, the amount of the consideration paid, which
includes directly attributable costs, is recognized as a deduction from equity. Repurchased The amendments to IAS 12 Income Taxes, effective for accounting periods beginning on or
shares are classified as own shares purchased for cancellation and are presented in the after January 01, 2023, require companies to recognise deferred tax on transactions that, on
consolidated statement of changes in equity as a separate reserve. initial recognition, give rise to equal amounts of taxable and deductible temporary differences.
They will typically apply to transactions such as leases of lessees and decommissioning
4. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED obligations and will require the recognition of additional deferred tax assets and liabilities.
ACCOUNTING STANDARDS THAT ARE NOT YET EFFECTIVE
The Group is in the process of assessing the impact of this amendment on the Group’s financial
4.1 Initial application of standards, amendments or an interpretation to existing standards statements.
Certain standard amendments and interpretations to approved accounting standards are 4.2.4 Amendments to IAS 8, Definition of Accounting Estimates
effective for the accounting periods beginning on or after July 1, 2022 but are considered not
to be relevant or to have any significant effect on the Group operations and are, therefore, not The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and
detailed in these financial statements. Errors, effective for accounting periods beginning on or after January 01, 2023, clarifies how
298 299
companies should distinguish changes in accounting policies from changes in accounting 5.2.1 The Company has bought back 25 million shares for the purpose of cancellation from 26th
estimates. The distinction is important, because changes in accounting estimates are applied May 2022 to July 05, 2022 at market price prevailing at the date of purchase. The purchase was
prospectively to future transactions and other future events, whereas changes in accounting made pursuant to approvals of Board of Directors and the shareholders of the Company in their
policies are generally applied retrospectively to past transactions and other past events as well meeting held on April 19, 2022 and May 17, 2022 respectively, where the company was allowed
as the current period. to purchase / buy back its issued ordinary shares up to the maximum of 25 million ordinary
These amendments are not expected to have a material impact on the Group’s financial shares, through Pakistan Stock Exchange Limited, at spot / current share price prevailing
statements when they become effective. during the period from May 26, 2022 to August 15, 2022. These shares were cancelled on July
15, 2022.
4.2.5 Amendments to IFRS 16, Leases on sale and leaseback 5.2.2 During the financial year 1992, pursuant to merger of White Cement Industries Limited and Pak
The amendment to IFRS 16 Leases on sale and leaseback, effective for accounting periods Cement Capital Limited with and into the Company, the Company issued 3,503,000 ordinary
beginning on or after January 01, 2023, requires companies to explain how an entity accounts shares at the rate of Rs. 10 each to the shareholders of White Cement Industries Limited
for a sale and leaseback after the date of the transaction. Sale and leaseback transactions and 6,487,100 ordinary shares at the rate of Rs. 10 each to the shareholders of Pak Cement
where some or all the lease payments are variable lease payments that do not depend on an Company Limited respectively. Further, during financial year 2001, pursuant to merger of Maple
index or rate are most likely to be impacted. These amendments are not expected to have a Leaf Electric Company Limited with and into the Company, the Company issued 25,844,000
material impact on the Group’s financial statements when they become effective. ordinary shares at the rate of Rs. 10 each to the shareholders of Maple Leaf Electric Company
Limited. The shares were issued in accordance with the schemes of merger approved by the
4.2.6 Amendment to IAS 1 – Non-current liabilities with covenants share holders of the Company.
The amendment to IAS 1 Non-current liabilities with covenants, effective for accounting 5.2.3 During the financial year ended June 30, 2011, Company issued 153,846,153 shares at Rs. 6.50
periods beginning on or after January 01, 2024, clarify how conditions with which an entity per share at a discount of Rs. 3.50 per share otherwise than right against Rs. 1,000 million to
must comply within twelve months after the reporting period affect the classification of a the Holding Company, after complying with all procedural requirements in this respect.
liability. The amendments also aim to improve information an entity provides related to liabilities
subject to these conditions. These amendments are not expected to have a material impact on 5.2.4 During the financial years ended June 30, 2011 and June 30, 2012, 1,321,095 preference shares
the Company’s financial statements when they become effective. were converted into 1,624,417 ordinary shares at a conversion rate of 1.2296.
Number of 2023 2022 Number of 2023 2022

5. SHARE CAPITAL Note shares (Rupees in thousand) shares (Rupees in thousand)
5.2.5 Movement of Issued, subscribed and
5.1 Authorised share capital paid-up share capital
(2022: 1,400,000,000) ordinary shares 1,400,000,000 14,000,000 14,000,000 At beginning of the year 1,098,346,232 10,983,462 10,983,462
of Rs. 10 each Own shares purchased during the year (25,000,000) (250,000) -
(2022: 100,000,000) 9.75% redeemable 100,000,000 1,000,000 1,000,000 At end of the year 1,073,346,232 10,733,462 10,983,462
cumulative preference shares of Rs. 10 each
1,500,000,000 15,000,000 15,000,000 5.3 The Holding Company holds 606,497,944 (2022: 606,497,944) ordinary shares, which
represents 56.51% (2022: 55.22%) of total ordinary issued, subscribed and paid-up share
5.2 Issued, subscribed and paid-up share capital capital of the Company.
Number of shares 5.4 Directors of the Company hold 96,706 (2022: 98,730) ordinary shares of Rs. 10 each of the
Company.
(2022: 860,972,162) ordinary shares 2023 2022
of Rs. 10 each fully paid in cash 5.2.1 835,972,162 8,359,721 8,609,721 Note (Rupees in thousand)
(2022: 35,834,100) ordinary shares 6. CAPITAL RESERVES
of Rs. 10 each issued as fully paid
for consideration other than cash 5.2.2 35,834,100 358,341 358,341 Capital redemption reserve 6.1 105,824 528,263
Share premium reserve 6.2 6,060,550 6,060,550
(2022: 46,069,400) ordinary Own share purchased for cancellation 5.2.1 - (496,429)
shares of Rs. 10 each issued as fully 46,069,400 460,694 460,694 FVOCI reserve 6.3 197,578 -
paid bonus shares
6,363,952 6,092,384
(2022: 153,846,153) ordinary
shares of Rs. 10 each issued as fully 5.2.3 153,846,153 1,538,462 1,538,462 6.1 This reserve has been created under section 85 of the repealed Companies Ordinance, 1984
paid right shares at discount for redemption of preference shares.
(2022: 1,624,417) ordinary shares of
Rs. 10 each issued as conversion of 6.2 This reserve can be utilized by the Company only for the purpose specified in section 81(2) of
preference shares into ordinary shares 5.2.4 1,624,417 16,244 16,244 the Companies Act, 2017.
6.3 This represents the unrealised gain on remeasurement of equity investments at FVOCI and is
5.2.5 1,073,346,232 10,733,462 10,983,462 not available for distribution.
300 301
302
7.
7.1
At end of the year
At end of the year
Freehold land
were as follows:
- net of deferred tax
At beginning of the year

At beginning of the year
local and export sales

year - net of deferred tax
Related deferred tax liability
Related deferred tax liability
Plant and machinery

FIXED ASSETS - NET OF TAX
SURPLUS ON REVALUATION OF
current assessed market value.
condition, usage and maintenance.

disposal of fixed assets during the year
Transfer to unappropriated profit in respect of
incremental depreciation charged during the
Deferred tax liability on revaluation surplus
also considered all relevant factors as well.

Surplus on disposal of fixed assets during the year
incremental depreciation charged during the year
Effect of change in effective tax rate due to proportion of
Buildings on freehold land, roads, bridges and railway sidings

2023
1,900,302
884,964
147,884
(261,105)
(226)
998,411
2,785,266
(261,105)
(455,012)
(226)
(385)
3,501,994
2022
2,503,583
998,411
113,647
(203,448)
(786)
1,088,998
3,501,994
(203,448)
(516,244)
(786)
(1,986)
4,224,458
and plant and machinery were revalued by Arif Evaluators, an independent valuer not
collect information regarding current prices of comparable cement plant to determine current
After determining current replacement values, depreciation was calculated to determine the
Suppliers and different cement plant consultants in Pakistan and abroad were contacted to
rates are applied according to construction specifications for current replacement values.
Construction specifications were noted for each building and structure and new construction
property dealers in near vicinity of freehold land. Different valuation methods and exercises
amount" category, at June 30, 2020. The basis of revaluation for items of these fixed assets
connected with the Company and approved by Pakistan Banks' Association (PBA) in "any
were adopted according to experience, location and other usage of freehold land. Valuer had
Fair market value of freehold land was assessed through inquiries to real estate agents and
The Company's freehold land, buildings on freehold land, roads, bridges and railway sidings
replacement value. Fair depreciation factor for each item is applied according to their physical
8. LONG TERM LOANS FROM FINANCIAL INSTITUTIONS - SECURED
Sanctioned Remaining Tenor of Principal
Lender 2023 2022 Mark-up as per Agreement Security
Limit Repayments
-------- Rupees in ‘000’ --------
1 Askari Bank Limited - Term Finance 707,130 459,634 636,416 13 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 1,333.33
from December 28, 2023. in arrears, from 1st drawdown to be set on last million over fixed assets of the Holding
business day before first draw down and then Company inclusive of 25% margin as below:
on immediately preceding day of each quarter. - Hypothecation charge over all present and
adjacent to it.
2 Bank of Punjab - Demand Finance 1,253,119 814,528 1,190,463 13 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 7,903 million
from Feburary 27, 2024. in arrears, to be reset on last working day of over all present and future fixed assets of
preceding calendar quarter. the Company with 25% margin and personal
guarantee of Mr. Tariq Sayeed Saigol and Mr.
3 MCB Bank Limited - Demand Finance 1,451,920 775,650 889,149 11 equal quarterly instalments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of 38,051 million
from June 24, 2024. in arrears, to be reset on 1st working day of (MCB Share Rs 4,500 million) over all present
each quarter. and future fixed assets of the Holding Company.
4 National Bank of Pakistan - Demand 5,500,000 1,280,001 2,565,714 09 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint pari Passu charge of Rs. 10,000 million
Finance from September 30, 2024. in arrears, to be reset on last business day over fixed assets of the Holding Company
before first draw down and then on immediately and personal guarantee of Mr. Tariq Sayeed
preceding day of each calendar quarter. Saigol and Mr. Sayeed Tariq Saigol (sponsoring
5 Samba Bank Limited - Term Finance 450,000 262,500 412,500 07 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly Joint Pari Passu charge of Rs. 600 million
from July 01, 2023. in arrears, to be reset on 1st working day of on all present and future fixed assets of the
each calendar quarter Company including land.
6 MCB Bank Limited (EX NIB) - Term 1,488,379 - 962,878 This loan has been fully repaid during 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of 38,051 million
Finance the year. in arrears, to be reset on the first working day of (MCB Share Rs. 4,500 million) over all present
every calendar quarter. and future fixed assets of the Holding Company.
7 MCB Islamic Bank Limited - Diminishing 1,500,000 822,807 1,045,285 Repayment will made in following 3-Month KIBOR + 70 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 2,000 million
Musharakah tranches. in arrears, to be set on the date of first day of over all present and future fixed assets of the
Tranche 1 disbursement and to be reset on 1st working Company including land and building and
12 equal quarterly installments starting day of each calendar quarter. personal guarantee of Mr. Tariq Sayeed Saigol
from August 23, 2023. and Mr. Sayeed Tariq Saigol (sponsoring
Tranche 2 directors and key management personnel).
Tranche 3
from June 28, 2023.
Tranche 4
Tranche 5
Tranche 6
from June 28, 2023.
303
304
Limit Repayments
-------- Rupees in ‘000’ --------
8 Askari Bank Limited - Term Finance 125,000 - 75,000 This loan has been fully repaid during 3-Month KIBOR + 125 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs 667 million
the year. in arrears, to be set on last business day before over fixed assets of the Holding Company
first draw down and then on immediately inclusive of 25% margin as below:
preceding day of each quarter. - Hypothecation charge over all present and future
plant and machinery of the Holding Company.
adjacent to it.
- Personal Guarantee of Mr. Tariq Saeed
Saigol and Mr. Saeed Tariq Saigol (sponsoring
9 The Bank of Punjab - Demand Finance 374,339 - 299,471 This loan has been fully repaid during 3-Month KIBOR + 125 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 7,903 million,
the year. in arrears, to be set on the day of 1st draw down with 25% margin, over all present and future
and then on last working day of preceding fixed assets of the Holding Company and
calendar quarter. personal guarantee of Mr. Tariq Sayeed Saigol
10 National Bank of Pakistan - Demand 1,000,000 - 200,000 This loan has been fully repaid during 3-Month KIBOR + 125 bps p.a, payable 1st Joint Pari Passu charge of Rs. 10,000 million
Finance the year. quarterly in arrears, to be set on the date of over fixed assets of the Holding Company
first disbursement and to be reset on the first and personal guarantee of Mr. Tariq Sayeed
working day of each calendar quarter. Saigol and Mr. Sayeed Tariq Saigol (sponsoring
11 MCB Islamic Bank - Diminishing 500,000 - 166,667 This loan has been fully repaid during 3-Month KIBOR + 70 bps p.a, payable 1st Joint Pari Passu charge of Rs. 666.67million
Musharakah the year. quarterly in arrears, to be set on the date of over all present and future fixed assets of the
first disbursement and subsequently at the Company and personal guarantee of Mr. Tariq
beginning of each quarter. Sayeed Saigol and Mr. Sayeed Tariq Saigol
(sponsoring directors and key management
personnel).
12 Allied Bank Limited- SBP refinance for 933,000 - 213,315 This loan has been fully repaid during SBP rate + 50 bps to 100 bps p.a, payable 1st Joint Pari Passu charge over all fixed assets
Wages and Salaries the year. quarterly in arrears. of the Holding Company with 25% margin.
13 Pair Investment Company Limited - Term 300,000 - 75,000 This loan has been fully repaid during 3 months KIBOR + 100 bps p.a, payable 1st Joint Pari Passu charge over present and
Finance the year. quarterly, with the first payment falling due future fixed assets of the Holding Company
at the end of the 3rd month from the first with 25% margin.
disbursement date and subsequently every
three months thereafter.
14 Askari Bank Limited - TERF 756,000 448,448 586,433 13 equal quarterly installments starting SBP Rate + 200 bps p.a, payable quarterly in Ranking hypothecation charge of PKR 310
from August 17, 2023. arrears. million with 25% margin, over all present
and future fixed assets (excluding land and
building) of the Holding Company (to be
upgraded to 1st Joint Pari Passu charge).
'Cushion available against existing registered 1st
Joint Pari Passu charge of Rs 2,000 million, to the
extent of Rs. 890.493 million, over fixed assets of
the Holding Company with 25% margin over
fixed assets of the Company as below:
- Hypothecation charge over all present and future
adjacent to it.

Limit Repayments
-------- Rupees in ‘000’ --------
15 Bank of Punjab - Demand Finance 600,000 243,157 297,192 18 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 7,903 million
from September 14, 2023. in arrears, to be set on the day of 1st draw down over all present and future fixed assets of
and then on last working day of preceding the Company with 25% margin and personal
calendar quarter. guarantee of Mr. Tariq Sayeed Saigol and Mr.
16 National Bank of Pakistan - Demand 1,220,497 714,106 360,751 32 equal quarterly installments starting 3-Month KIBOR + 125 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 10,000 million
Finance from September 18, 2023. in arrears, to be reset on last working day of over fixed assets of the Holding Company
preceding calendar quarter. and personal guarantee of Mr. Tariq Sayeed
Saigol and Mr. Sayeed Tariq Saigol (sponsoring
17 National Bank of Pakistan - TERF 1,779,503 1,730,090 1,779,503 32 equal quarterly installments starting SBP rate + 150 bps p.a, payable quarterly in 1st Joint Pari Passu charge of Rs. 10,000 million
from September 18, 2023. arrears. over fixed assets of the Holding Company
and personal guarantee of Mr. Tariq Sayeed
Saigol and Mr. Sayeed Tariq Saigol (sponsoring
18 Bank of Punjab - Demand Finance 2,500,000 2,222,753 1,965,331 32 equal quarterly installments starting 3-Month KIBOR + 90 bps p.a payable quarterly Cushion available against existing registered
from September 19, 2023. in arrears to be reset on last working day of 1st Joint Pari Passu charge of Rs 7,903 million,
preceding calendar quarter. over fixed assets of the Holding Company
inclusive of 25% margin and initial ranking
charge of Rs. 3,236.1 million with 25% margin,
over all present and future fixed assets of the
Company (upgraded to First Joint Pari Passu
charge).
19 Bank of Punjab - TERF 500,000 500,000 500,000 32 equal quarterly installments starting SBP Rate + 150 bps p.a payable quarterly in 1st Joint Pari Passu Charge of Rs 7,903 million
Holding Company, with 25% margin.
20 MCB Bank Limited - LTFF 805,806 805,806 805,806 32 equal quarterly installments starting SBP LTFF Rate + 150 bps p.a, payable quarterly 1st Joint Pari Passu charge of 38,051 million
from September 18, 2023. in arrears. ( MCB Share Rs 4,500 million) over all present
and future fixed assets of the Holding Company.
21 MCB Bank Limited - Demand Finance 1,194,194 617,007 439,276 32 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a payable quarterly 1st Joint Pari Passu charge of 38,051 million
from September 18, 2023. in arrears to be reset on last working day of ( MCB Share Rs 4,500 million) over all present
preceding calendar quarter. and future fixed assets of the Holding Company.
22 Habib Bank Limited. - LTFF 560,705 560,705 560,705 20 equal quarterly installments starting SBP + 150 bps p.a, payable quarterly in arrears. 1st Joint Pari Passu charge of Rs. 4,000 million
from September 25, 2023. over all present and future fixed assets of the
Holding Company including land i.e. 2097 Kanals
and 9 Marlas, building, plant and machinery.
23 Habib Bank Limited - Term Finance 2,439,295 1,974,686 1,437,412 20 equal quarterly installments starting 3-Month KIBOR + 150 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs. 4,000 million
from September 25, 2023. in arrears, to be reset on last working day of over all present and future fixed assets of the
preceding calendar quarter. Holding Company including land i.e. 2097 Kanals
and 9 Marlas, building, plant and machinery.
305
306
Limit Repayments
-------- Rupees in ‘000’ --------
24 Allied Bank Limited -Term Finance 518,575 365,473 118,969 Repayment will made in following 3-Month KIBOR + 100 bps p.a, payable quarterly Joint Pari Passu charge of Rs 853.33 million,
tranches. in arrears, markup to be reset on last working inclusive of 25% margin, over all present and
Tranche 1 day of preceding calendar quarter. future plant and machinery of the Holding
24 equal quarterly installments starting Company.
Tranche 2
Tranche 3
from December 19, 2023.
25 Allied Bank Limited - LTFF 121,425 111,306 121,425 22 equal quarterly installments starting SBP + 100 bps p.a, payable quarterly in arrears. Joint Pari Passu charge of Rs 853.33 million,
from August 22, 2023. inclusive of 25% margin, over all present and future
26 Faysal Bank Limited - Diminishing 2,000,000 1,428,036 986,594 21 equal quarterly installments starting 3-Month KIBOR + 150 bps p.a, payable quarterly Joint Pari Passu charge over all present &
Musharakah from August 31, 2023. in arrears. future fixed assets of the Holding Company
with 25% margin and personal guarantee
of Mr. Tariq Saeed Saigol and Mr. Saeed
Tariq Saigol (sponsoring directors and key
management personnel).
27 MCB Islamic Bank Limited - Diminishing 350,000 331,528 350,000 Repayment will made in following SBP Rate + 150 bps p.a, payable quarterly in Joint Pari Passu charge over fixed assets of
Musharakah tranches. arrears. Company including land, building and plant
Tranche 1 and machinery with 25% margin.
from July 01, 2023.
Tranche 2
from June 30, 2023.
Tranche 3
from July 26, 2023.
28 MCB Bank Limited - Demand Finance 500,000 333,278 480,816 16 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly Ranking charge of Rs. 667 million over
from May 28, 2025. in arrears, to be set on last business day before present and future fixed assets of the Holding
first draw down and then on immediately Company, inclusive of 25% margin.
preceding day of each quarter.
29 Askari Bank Limited - Term Finance 1,000,000 816,931 816,931 32 equal quarterly installments starting 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs 1,333.33
from September 09, 2024. in arears, to be set on one business day before million over fixed assets of the Holding
1st drawdown and then on immediately Company inclusive of 25% margin as below
preceding day before start of each quarter. (same charged in serial no 9) :
- Hypothecation charge over all present and future
adjacent to it.

Limit Repayments
-------- Rupees in ‘000’ --------
30 Allied Bank Limited -Term Finance 1,000,000 1,000,000 - Repayment will made in following 3-Month KIBOR + 75 bps p.a, payable quarterly 1st Joint Pari Passu charge of Rs 1,333.33
tranches. in arears, to be set on one business day before million over fixed assets of the Company
Tranche 1 1st drawdown and then on immediately inclusive of 25% margin as below (same
16 equal quarterly installments starting preceding day before start of each quarter. charged in serial no 9) :
from November 04, 2023. - Hypothecation charge over all present and
Tranche 2 future plant and machinery of the Company.
16 equal quarterly installments starting - Land and Building of Cement Unit Phase II
from March 12, 2024. and additional bare land measuring 30 Kanals
adjacent to it.
Total 33,428,887 18,618,430 20,339,002
Accrued mark up on long term loans 743,232 490,860
Amortized Cost of long term loans 19,361,662 20,829,862
Less:
Impact of deferred government grant (785,692) (971,334)

from financial institutions -
secured (principal portion) (2,599,401) (2,619,800)

from financial institutions - secured
(accrued mark up portion) (743,232) (490,860)
Long term portion of loans from

financial institutions 15,233,337 16,747,868
307
2023 2022 2023 2022
Note (Rupees in thousand) (Rupees in thousand)
9. DEFERRED GRANT 11. LIABILITY AGAINST RIGHT OF USE ASSET
Balance as at 01 July 9.1 & 9.2 971,334 99,566 Liability against right of use asset 33,973 -
Recognized during the year - 950,467 Addition during the year 17,666 44,021
Amortization during the year (185,642) (78,699) Interest Expense 5,038 2,377
Payment during the year (14,611) (12,425)
Balance as at 30 June 785,692 971,334 Lease terminated during the year (401) -
Current portion (179,766) (184,576) 41,665 33,973
Non - current portion 605,926 786,758 Current portion of liability against right of use asset (10,257) (6,837)
31,408 27,136
9.1 This represents deferred grant related to loans obtained, during last year, under “SBP refinance
scheme for payment of wages and salaries” and “SBP Temporary Economic Refinance Facility Maturity analysis of liability against right of use asset is as follows:
Scheme” for setting of waste heat recovery plant. These facilities carry mark-up at the rate
specified by State Bank of Pakistan plus spread of 0.5% to 2% per annum. The loans were Less than one year 14,325 9,138
initially measured at its fair value in accordance with IFRS 9 (Financial Instruments) using market One to five years 26,498 19,715
rates at SBP approval dates of each tranche. The difference between fair value of loan and loan More than five years 30,226 31,924
proceeds was recognized as deferred grant as per requirements of IAS 20 (Accounting for
Government Grants and Disclosure of Government Assistance), circular number 11 of 2020 Total undiscounted liability against 71,049 60,777
issued by the Institute of Chartered Accountant of Pakistan and selected opinion issued in right of use asset as at June 30
November 2020 by the Institute of Chartered Accountants of Pakistan. Impact of discounting on liability against right of use asset (29,384) (26,804)
9.2 The Company has obtained loans amounting to Rs. 2,727 million under “SBP Temporary 41,665 33,973
Economic Refinance Facility” and “SBP Financing Scheme for Renewable energy” for setting
up of Waste Heat Recovery Plant, for import and installation of cement production line (Line - 12. LONG TERM DEPOSITS
IV) and for setting up Solar Energy Project. These facilities carry markup at the rate specified
by State Bank of Pakistan plus spread of 1.50% to 2% per annum. The loan has been initially These represent deposits received from dealers and are being utilized by the Group in accordance
measured at its fair value in accordance with IFRS 9 (Financial Instruments) using market rates with the terms of dealership agreements.
at SBP approval dates of each tranche. The difference between fair value of loan and loan
proceeds has been recognized as deferred grant as per requirements of IAS 20 (Accounting 2023 2022
for Government Grants and Disclosure of Government Assistance) and as per selected opinion Note (Rupees in thousand)
issued in November 2020 by the Institute of Chartered Accountants of Pakistan. 13. DEFERRED TAXATION
Deferred tax liability on taxable temporary differences

2023 2022 arising in respect of:
10. LONG TERM LOAN FROM SUBSIDIARY COMPANY - Accelerated tax depreciation on fixed assets 9,884,656 6,176,356
- Surplus on revaluation of fixed assets 884,969 998,411
Long term loan 10.1 - - - Investment at FV - OCI 65,859 -
10,835,484 7,174,767
10.1 This represents conversion of balance payable to Maple Leaf Power Limited, the Subsidiary Deferred tax asset on deductible temporary differences
Company, in lieu of electricity purchased during the current and prior years to long term loan. arising in respect of:
On June 30, 2023, addendum to agreement dated June 01, 2019 for conversion of outstanding
balance into long term loan was signed between the Company and the Subsidiary Company. - Provision against expected credit loss (89,719) (16,155)
As per the addendum, Rs. 2,000 million which was payable from April 01, 2024 has been - Unused tax losses 13.2 (479,209) (974,863)
rescheduled and current payable balance of due to Subsidiary Company. The total loan of Rs. - Minimum tax 13.3 (493,792) (180,758)
2,000 million is now payable in eight equal quarterly instalments starting from October 01, 2025 - Alternative corporate tax 13.4 (1,013,692) (277,270)
. This loan carries mark-up at 3 month KIBOR plus 1% per annum, payable quarterly in arears. - Employees’ retirement benefits (51,591) (37,978)
The effective rate during the year ranges from 15.32% to 22.08% per annum (2022: 8.45% to
12.95%). (2,128,003) (1,487,024)
13.1 8,707,481 5,687,743
308 309
2023 2022 2023 2022
13.1 Movement in deferred tax balances is as follows: 15. RETIREMENT BENEFITS
At beginning of the year 5,687,743 3,931,540 Accumulated compensated absences 15.1 213,284 165,416
Gratuity 15.2 65,208 69,913
Recognized in profit and loss account:
- Accelerated tax depreciation on fixed assets 3,708,300 915,943 278,492 235,329
- Surplus on revaluation of fixed assets (261,326) (204,234)
- Unused tax losses 495,654 1,016,378 15.1 Accumulated compensated absences
- Employees’ retirement benefits (6,636) 26,582
- Minimum tax (313,034) - The actuarial valuation of the Group’s accumulated compensated absences was conducted
- Alternative corporate tax (736,422) (181,599) on June 30, 2023 using projected unit credit method. Detail of obligation for accumulated
- Provision for expected credit loss (73,564) 68,929 compensated absences is as follows:
2,812,972 1,641,999 15.1.1 Movement in the present value of defined benefit obligations is as follows:
Recognized in surplus on revaluation of fixed assets 2023 2022

Effect of change in proportion of local and export sales 147,884 113,647 Present value of defined benefit obligations at
beginning of the year 165,416 137,775
Recognized in other comprehensive income: Current service cost for the year 11,103 11,110
- Employees’ retirement benefits (6,977) 557 Interest cost for the year 20,729 12,990
- Investment at fair value through OCI 65,859 - Remeasurements:
8,707,481 5,687,743 demographic assumptions - -
financial assumptions - -
13.2 This represents deferred tax asset on unused tax losses amounting to Rs. 1,652 million (2022: Experience adjustments 33,974 19,283
Rs. 3,527 million) recognized on the basis of future expected taxable profits. As at June 30,
2023, unused tax losses represent unabsorbed depreciation which is available for adjustment Benefits paid during the year (17,938) (15,742)
for indefinite period in accordance with the provisions of Income Tax Ordinance, 2001.
Present value of defined benefit obligation 213,284 165,416
13.3 Deferred tax asset on minimum tax available for carry forward u/s 113 of the Income Tax
Ordinance, 2001 are recognised to the extent that the realisation of related tax benefits through 15.1.2 Charge for the year
future taxable profits is probable. The Company has recognised deferred tax assets of Rs.
493.792 million (2022: Rs. 180.029) in respect of minimum tax available for carry forward u/s 113 In statement of profit or loss
of the Income Tax Ordinance, 2001, as sufficient tax profits would be available to set these off in
the foreseeable future. Minimum tax amounting to Rs. 180.76 million and Rs. 313.03 million will Current service cost for the year 11,103 11,110
expire in year 2024 and 2026 respectively. Interest cost for the year 20,729 12,990
Actuarial losses on present value of
13.4 Deferred tax asset on alternate corporate tax available for carry forward u/s 113(c) of the Income defined benefit obligations 33,974 19,283
Tax Ordinance, 2001 are recognised to the extent that the realisation of related tax benefits
through future taxable profits is probable. The Company has recognised deferred tax assets of 65,806 43,383
Rs. 1,013.692 million (2022: Rs. 277.999 million) in respect of alternate corporate tax available
for carry forward u/s 113(c) of the Income Tax Ordinance, 2001, as sufficient tax profits would
be available to set these off in the foreseeable future. Alternate Corporate Tax amounting to Rs
90.11 million, Rs 277.03 million and Rs 646.55 million will expire in year 2031, 2032 and 2033
respectively.
14. RETENTION MONEY PAYABLE
This represented retention money payable to M/s Chengdu Design & Research Institute Of Building
Materials Industry Co., Ltd amounting to CNY 38.41 million (equivalent to Rs. 1,535.635 million)
against line-IV after 18 months of last major shipment and remaining amount will be payable to M/s
Sinoma Energy Conservation Ltd against line-IV WHRP amounting to CNY 5.43 million (equivalent
to Rs. 217.353 million). This amount will be payable on issuance of certificate of performance test
acceptance by the Company.
310 311
15.1.3 Sensitivity analysis 15.2.1 Movement in the present value of defined benefit obligations is as follows:
Significant actuarial assumptions used to estimate the liability are discount rate and future 2023 2022
salary increases. If such assumptions had fluctuated by 100 bps with all other variables held Note (Rupees in thousand)
constant, the present value of the defined benefit obligation as at June 30, 2023 would have
been as follows: Present value of defined benefit obligations at
Compensated absences beginning of the year 153,729 168,575
Current service cost for the year 6,029 6,547
Interest cost for the year 17,829 15,218
benefit obligation
Benefits due but not paid (2,399) (5,232)
Increase in Decrease in Remeasurements:
assumption assumption Actuarial (gains) / losses from changes in
(Rupees in thousand) demographic assumptions - -
Discount rate + 100 bps 194,020 235,773 financial assumptions 183 194
Experience adjustments 23,194 (3,996)
Future salary increase + 100 bps 235,427 194,021 Benefits paid during the year (35,940) (27,577)
Present value of defined benefit obligation at
The sensitivity analysis of the defined benefit obligation to the significant actuarial assumptions end of the year 162,625 153,729
benefit obligation reported in the consolidated statement of financial position. 15.2.2 Movement in the fair value of plan assets is
as follows:
15.1.4 At June 30, 2023, the average duration of the defined benefit obligation was 10 years.
Fair value of plan assets at beginning of the year 83,816 78,084
15.1.5 Actuarial assumptions Contributions made during the year 41,171 27,577
Expected return on plan assets for the year 11,452 7,808
The following are the principal actuarial assumptions as at June 30: Actuarial loss / (gain) on plan assets 4,547 (2,076)
Benefits paid during the year 15.2.4 (41,170) (27,577)
2023 2022
(Percentage)
Fair value of plan assets at end of the year 99,816 83,816
Discount rate used for interest cost 13.25% 10.00%
Fair value of plan assets are as follows:
Expected rate of growth per annum in future salaries 15.25% 12.25%
NAFA Government Securities Liquid Fund 98,859 23,743
Expected mortality rate SLIC 2001 - 2005
Special saving certificates - 58,560
Setback 1 Year
Cash at bank 957 1,513
Retirement assumptions 60 Years 60 Years
99,816 83,816
15.2 Gratuity
The latest actuarial valuation of the Group’s defined benefit plan, was conducted on June 30,
2023 using projected unit credit method. Detail of obligation for defined benefit plan is as follows: 2023 2022
Percentage
The amounts recognized in the statement of consolidated financial position are as follows:
Plan assets comprise of:
2023 2022 Equity 99.04% 28.32%
Note (Rupees in thousand) Special saving certificates 0.00% 69.87%
Cash at bank 0.96% 1.81%
Present value of defined benefit obligation 15.2.1 162,625 153,729
Less: Fair value of plan assets 15.2.2 (99,816) (83,816) 100.00% 100.00%
Add: Payable to ex-employees 2,399 -
Net liability at beginning of the year 69,913 90,491

Charge to profit and loss account for the year 15.2.3 12,406 13,957
Charge to other comprehensive income
for the year 15.2.3 18,830 (1,726)
Contribution made during the year (35,940) (27,577)

Gratuity due but not paid - (5,232)
312 313
15.2.3 Charge for the year 15.6 Compensated absence and gratuity charge to profit or loss
for the year has been allocated as follows:
2023 2022
(Rupees in thousand) 2023 2022
In consolidated statement of profit or loss Note (Rupees in thousand)
Current service cost for the year 6,029 6,547 Cost of sales 36.2 41,000 34,380
Interest cost for the year 17,829 15,218 Administrative expenses 38.1 22,680 13,731
Expected return on plan assets for the year (11,452) (7,808) Distribution expenses 37.1 14,531 9,229
12,405 13,957 78,211 57,340
In consolidated statement of comprehensive income 16. TRADE AND OTHER PAYABLES
Actuarial losses / (gains) on retirement benefits - net 18,830 (1,726) Trade creditors 3,412,227 3,670,091
Bills payable - secured 1,416,937 329,630
31,236 12,231 Accrued liabilities 1,879,568 1,378,847
Contract liabilities 16.1 445,838 345,495
Payable to Workers’ Profit Participation Fund 16.2 1,903,611 1,889,435
Actuarial assumptions 2023 2022 Payable to Workers’ Welfare Fund 16.3 329,660 175,669
Percentage Payable to Provident Fund Trust - 17,786
The following are the principal actuarial assumptions at June 30:
9,387,841 7,806,953
Discount rate used for interest cost in profit or loss 13.25% 10.00% Payable to Government on account of:
Expected rate of growth per annum in future salaries 15.25% 12.25% Federal Excise duty payable 374,455 511,547
Expected mortality rate SLIC 2001 - 2005 Sales Tax payable - net 783,157 39,473
Setback 1 Year Royalty and Excise Duty payable 35,059 80,435
Retirement assumptions 60 Years 60 Years Provision for electricity duty 230,656 180,652
Other Taxes payable 183,622 356,679
15.2.4 This also includes payments made to employees with respect to gratuity due but not paid in 2022
amounting to Rs. 5.23 million. 1,606,949 1,168,786
15.3 The Group expects to charge Rs. 12.405 million to consolidated statement of profit or loss on Contractors’ retention money 16.4 360,396 555,864
account of defined benefit plan in the year ending June 30, 2023. Security deposits repayable on demand 16.5 76,723 75,214
Payable against redemption of preference shares 1,005 1,010
15.4 Sensitivity analysis Other payables 12,276 35,722
If the significant actuarial assumptions used to estimate the defined benefit obligation at the 450,400 667,810
reporting date, had fluctuated by 100 bps with all other variables held constant, the present value
of the defined benefit obligation as at June 30, 2023 would have been as follows: 11,445,190 9,643,549
Gratuity
benefit obligation 16.1 This represents advances received from customers for future sale of goods. During the year,
Increase in Decrease in the Group has recognized revenue amounting to Rs. 219.027 million, out of the contract liability
assumption assumption as at July 01, 2022.
benefit obligation reported in the statement of financial position.
15.5 At June 30, 2023, the average duration of the defined benefit obligation was 4 years.
314 315
2023 2022 2023 2022
18. SHORT TERM BORROWINGS
16.2 Payable to Workers’ Profit Participation Fund
Banking and financial institutions:
At beginning of the year 1,889,435 1,553,602 - Cash finance and others facilities availed 18.1 - 808,521
Allocation for the year 39 124,176 427,064 - Running finance 18.2 - 1,396,990
Less: Paid during the year (110,000) (91,231) - Islamic mode of financing 18.3 - 1,366,057
Temporary bank overdrafts - unsecured 18.4 - 505
At end of the year 1,903,611 1,889,435
- 3,572,073
16.3 Workers’ Welfare Fund
18.1 The Company has un-availed cash finance and other funded facilities aggregating to Rs. 2,000
At the beginning of the year 175,669 86,043 million (2022: Rs.1,938 million) at the year end and un-availed facilities for opening letters of
credit / guarantee aggregating to Rs. 8,685 million (2022: Rs. 7,935 million) at the year end.
Charge for the year 39 220,943 170,825
Prior year charge - (58,014) The cash finance and other facilities carry mark-up at the rates ranging from 3.00% to 22.70%
(2022: 3.00% to 21.00% ) per annum payable quarterly in arrears.
220,943 112,811
18.2 The Company has un-availed running finance funded facilities aggregating to Rs. 950 million
Paid during the year (66,952) (23,185) (2022: Rs. 448 million) at the year end. These are secured against same securities as mentioned
in note 18.1 above.
The running finance carries mark-up at the rates ranging from 14.80% to 23.58 (2022: 7.92% to
15.18%) per annum, payable quarterly in arrears.
16.4 This represents retention money withheld from contractors and are repayable after satisfactory
completion of contracts. 18.3 The Company has un-availed Islamic financing facilities aggregating to Rs. 2,000 million (2022:
601million) at the year end.
16.5 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 The Islamic financing facilities carried profit expense at : 8.05% to 11.26% per annum payable
course of business. in arrears during 2022.
2023 2022
Note (Rupees in thousand) 18.4 This represents temporary overdraft in the preceding financial year due to cheques issued by
the Company at the statement of financial position date June 30, 2022.
17. MARK-UP ACCRUED ON BORROWINGS
19. CONTINGENCIES AND COMMITMENTS
Accrued mark-up on:
- Long term loans 17.1 743,232 490,860 19.1 Contingencies
- Short term borrowings 17.2 21,723 141,976
19.1.1 The Holding Company filed writ petitions before the Honourable Lahore High Court against the
764,955 632,836 legality of judgment passed by the Customs, Excise and Sales Tax Appellate Tribunal in 2004
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 Honourable Lahore High
17.1 Accrued mark-up on all loans includes Rs. 62.011 million (2022: Rs. 60.547 million) related to Court is Rs.10.01 million out of which Rs. 3 million had already been paid during previous years.
an arrangement permissible under Shariah. Remaining mark up pertains to the loans from Lahore High Court remanded the case back to Appellate Tribunal for Decision afresh. However,
conventional banks. hearing of the appeals by the Appellate Tribunal is yet to be fixed. No further provision has been
made in these consolidated financial statements in respect of the matter as the management
17.2 Accrued mark-up on short term loans includes Rs. Nil (2022: Rs. 62.331 million) related to and the Company’s legal advisor are confident that the ultimate outcome of this case will be in
an arrangement permissible under Shariah. Remaining mark up pertains to the loans from favour of the Holding Company.
conventional banks.
19.1.2 The Holding 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 Holding
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 July 01, 1995. The impugned
demand was raised by the department on the alleged ground that the Holding Company was
not entitled to exemption from payment of customs duty and sales tax in terms of SRO 279(I)/94
dated April 02, 1994.
316 317
The Honourable Lahore High Court, upon the Holding Company’s appeal, vide its order dated 19.1.5 Competition Commission of Pakistan, vide order dated August 27 ,2009, has imposed
November 06, 2001 has decided the matter in favour of the Company; however, the Collector penalty on twenty cement factories of Pakistan at the rate of 7.5% of the turnover value. The
of Customs has preferred a petition before the Honourable Sindh High Court, which is pending Commission has imposed penalty amounting to Rs. 586.19 million on the Holding Company.
adjudication. No provision has been made in these consolidated financial statements in respect The Commission has alleged that provisions of section 4(1) of the Competition Commission
of the above stated amount as the management and the Company’s legal advisor are confident Ordinance, 2007 have been violated. However, after the abeyance of Honourable Islamabad
that the ultimate outcome of this case will be in favour of the Holding Company. High Court pursuant to the judgment of Honourable Supreme Court of Pakistan dated July
31, 2009, the titled petition has become infructuous and the Holding Company has filed
19.1.3 A show cause notice was issued to the Holding Company on December 04, 1999 and demand a writ petition no. 15618/2009 before the Honourable Lahore High Court. No provision has
was raised by the Central Board of Revenue (now the Federal Board of Revenue) for payment been made in these consolidated financial statements as the management and the Holding
of duties and taxes on the plant and machinery imported by the Company (pursuant to the Company’s legal advisor are confident that the ultimate outcome of this case will be in favour of
exemption granted in terms of SRO 484(I)/92 allegedly on the ground that the plant could be the Holding Company.
locally manufactured and was therefore not exempt). A total demand of Rs.1,386.72 million
was raised by the Central Board of Revenue out of which an amount of Rs. 449.328 million 19.1.6 The Additional Collector, Karachi has issued show cause notice alleging therein that the
was deposited by the Holding Company (initially the Holding Company deposited Rs. 269.328 Company has wrongly claimed the benefits of SRO No. 575(I)/2006 dated June 05, 2006 on
million and subsequently deposited further amount of Rs. 180.00 million). Initially, the matter the import of pre-fabricated buildings structure. Consequently, the Company is liable to pay
was decided in favour of the Holding Company as per the judgment of the Lahore High Court in Government dues amounting to Rs. 5.55 million. The Company has submitted reply to the
writ petition no. 6794/2000. Against the aforesaid judgment of Lahore High Court, the Customs show cause notice and currently proceedings are pending before the Additional Collector. No
Department had filed appeal before the Supreme Court of Pakistan which was decided by the provision has been made in these consolidated financial statements as the management and
Honourable Supreme Court vide judgment dated December 21, 2011 with the direction to file the Company’s legal advisor are confident that the ultimate outcome of this case will be in
reply to the Show Cause Notice before the Collector of Customs, Faisalabad. favour of the Holding Company.
The Holding Company has filed its reply before the Collector of Customs, Faisalabad who 19.1.7 The customs department has filed an appeal against the judgment dated May 19, 2009, passed
decided the same against the Holding Company vide order no. 6/2014 dated July 09, 2014. The in favour of the Holding Company pursuant to which the Holding Company is not liable to pay
said order was challenged by the Holding Company by way of filing of appeal no. 172/LB/2014 custom duty amounting to Rs. 0.81 million relating to import of some machinery vide L/C No.
before the Customs Appellate Tribunal, Lahore who vide Judgment dated August 21, 2019 has 0176-01-46-518-1201 in terms of SRO 484(1)/92 dated May 14, 1992, and SRO 978(1)/95
granted partial relief to the Holding Company with direction to the Customs Department to dated October 04, 1995. The appeal is pending before the Honourable Lahore High Court. No
recalculate the customs duty in accordance with the list communicated by the Engineering provision has been made in these consolidated financial statements as the management and
Development Board vide letter dated June 21, 2006. the Holding Company’s legal advisor are confident that the ultimate outcome of this case will
be in favour of the Holding Company.
However, the Collector of Customs instead of making fresh calculations, through a demand
notice CA-1946/2000(Pt-I)/8169 dated October 23, 2019 restored the original demand raised 19.1.8 Surcharge of Rs. 154 million has been imposed by Mines and Minerals Department,
by the earlier order no. 06/2014 and directed the Holding Company to pay the amount of Rs. Government of the Punjab under Rule 68(2) of Punjab Mining Concession Rules, 2002 (“Rules”)
933.81 million within a period of seven days. The said demand of tax was challenged by the against which the Holding Company has filed writ petition against Government of Punjab via
Holding Company before the Honourable Lahore High Court, wherein stay against recovery writ petition No. 1008/2014 to challenge the basis of Rules. The Honourable Lahore High Court
was granted to it by the Honourable Lahore High Court vide order dated November 04, 2019. dismissed the petition and remanded the case back to the department since the matter was
This matter is still pending before the Honourable Lahore High Court, Lahore and next date of being reviewed by the relevant authority. Management and the Company’s legal advisor are
hearing is yet to be fixed by the office of the High Court. No provision has been made in these confident that the ultimate outcome of this case will be in favour of the Holding Company.
consolidated financial statements in respect of the above stated amount as the management
and the legal advisor of the Holding Company are confident that the ultimate outcome of this 19.1.9 The FBR selected the company’s case for audit of its sales tax affairs for the tax periods from
case will be in favour of the Holding Company. July 2017 through June 2018 through computerized balloting which was intimated through
notice dated February 10, 2021 issued by the office of the CIR. Subsequently, the DCIR issued
19.1.4 The Holding Company has filed an appeal before the Honourable Supreme Court of Pakistan audit report and show cause notice dated March 8, 2021 and March 17, 2021 respectively. The
against the judgment of the Division Bench of the Honourable High Court of Sindh at Karachi. proceedings were finalized through order dated March 31, 2021 through which an aggregate
The Division Bench, by judgment dated September 15, 2008, has partly accepted the appeal sales tax demand of Rs 1,399.89 million was created against the Holding Company.
by declaring that the levy and collection of infrastructure cess / fee prior to December 28,
2006 was illegal and ultra vires and after December 28, 2006, it was legal and the same was The Holding Company preferred an appeal against the above referred order which was disposed
collected by the Excise Department in accordance with the law. The appeal has been filed of by the CIR vide appellate order dated July 15, 2021. Through such appellate order, majority
against the declaration that after December 28, 2006, the Excise Department has collected of the issues which were pressed in appeal were settled in favour of the Holding Company.
the infrastructure cess / fee in accordance with law. The Province of Sindh and Excise and Regarding the issues decided against the Holding Company, the Holding Company is in the
Taxation Department has also preferred an appeal against the judgment decided against them. process of preferring an appeal before the ATIR and on the basis of evidence shared by the
The Honourable Supreme Court consolidated both the appeals and were set aside. Thereafter, Holding Company, we consider that the Holding Company is likely to obtain relief from the
law has been challenged in constitution petition in the Honourable Sindh High Court Karachi. appellate authorities.
Stay has been granted by the Honourable High Court on May 31, 2011 on payment of 50% of
the cess to the Excise Department and on furnishing of bank guarantee for remaining 50% to 19.1.10 Through notices dated March 3, 2021, the CIR selected company’s case for audit of its sales
them. The matter is pending adjudication before the Honourable court, till that time, the stay tax affairs for tax periods from July 2015 to June 2017 and July 2018 to June 2020. The company
order remains in effect. challenged the vires of selection by the CIR before the Honourable Lahore High Court, and
the Honourable Lahore High Court, vide interim order dated March 30, 2021, directed that the
audit proceedings shall continue, however, no final order shall be passed till the disposal of writ
petition.
318 319
Following the directions of the Honourable Lahore High Court, the company joined the 10, 2022. Through such appellate order, entire sales tax demand along with penalty and default
audit proceedings by responding to issues arising out of audit reports Subsequently, the tax surcharge has been annulled by the CIR(A). It was held that the disposal of land, buildings and
authorities issued show cause notices under section 11 of the Act dated May 31, 2021, for the vehicles did not warrant the imposition of sales tax and accordingly, the demand on account
subject tax periods which are yet to be responded to. Since the matter is pending before the of these disposals has been deleted whereas sales tax demand on account of disposal of
Honourable Lahore High Court, which has barred the tax authorities from passing any final remaining fixed assets, amounting to Rs 23 million, has been remanded back to the taxation
order till the disposal of writ petitions. officer to decide the matter after examination of underlying record. No further correspondence
has been received from tax department in this regard. The management is expecting favourable
19.1.11 The Learned Additional Commissioner vide order no. ENF-III.50.2017 dated March 22, 2018 outcome of the case, therefore, no provision has been booked in these consolidated financial
raised demand of Rs. 256 million against the Company, related to tax period from July 2015 statements.
to March 2017 on alleged non-deduction of withholding tax on services received by the
Company. Being aggrieved, the Company filed an appeal before the Commissioner (Appeals), The Subsidiary Company
Punjab Revenue Authority. The Company also challenged the vires of Rule 6 of Punjab Sales
Tax on Services (Withholding) Rules, 2002 before Honourable Lahore High Court (LHC) 19.1.16 During the year, the Deputy Commissioner Inland Revenue (DCIR) show caused Maple Leaf
through constitutional petition no. 203460/2018. The Honourable Court issued notice to the Power Limited vide notice dated November 29, 2022, wherein requiring Subsidiary Company
department and suspended proceedings before the first appellate authority vide order dated to provide details / clarification of adjustment of various inputs under section 8 of the Sales
23 May 2018. The writ petition is pending adjudication. The Company and the tax/legal advisor tax Act, 1990 (the Act) relating to tax period July 2019 to June 2020. Subsidiary Company fully
of the Holding Company are expecting favourable outcome of the case. Therefore, no provision complied with the said notice and the assessing officer finalised the proceeding and passed
has been booked in these consolidated financial statements. an order by creating a demand to the tune of Rs. 474.67 million. Being aggrieved with the said
order, Subsidiary Company filed an appeal before Commissioner Inland Revenue- Appeals
19.1.12 The Holding Company was selected for audit under section 42B of Sales tax for tax period July (CIR-A). The CIR-A has not decided the case yet.
2017 to June 2018 intimated by letter dated December 8, 2020. The DCIR finalized the audit and
created a demand of Rs. 690.52 million along with default surcharge and penalty, vide order no. 19.1.17 During the year, the Deputy Commissioner Inland Revenue (DCIR) show caused Subsidiary
02 dated October 20, 2021. Being aggrieved, the Company preferred an appeal before CIR(A). Company vide notice dated November 29, 2022, wherein requiring Subsidiary Company to
The appeal was disposed off by CIR(A) vide appellate order no. 12 dated February 10, 2022 and provide details / clarification of adjustment of various inputs under section 8 of the Sales tax
entire amount of Federal Excise Duty along with penalty and default surcharge was annulled Act, 1990 (the Act) relating to tax period July 2020 to June 2021. Subsidiary Company fully
and the matter was remanded back to the taxation officer. Being aggrieved, the Company complied with the said notice and the assessing officer finalised the proceeding and passed
preferred an appeal before the ATIR which is pending adjudication. However, the management an order by creating a demand to the tune of Rs. 477.27 million. Being aggrieved with the said
and the tax advisor of the Company are hopeful of favourable outcome of the case, therefore, order, Subsidiary Company filed an appeal before Commissioner Inland Revenue- Appeals
no provision has been incorporated in these consolidated financial statements. (CIR-A). The CIR-A has not decided the case yet.
19.1.13 The Holding Company received show cause notice, dated April 17, 2022 as per which it was 19.1.18 The Deputy Commissioner Inland Revenue (DCIR) show caused Subsidiary Company vide
alleged that the Holding Company’s claim of input sales tax amounting to Rs 85.98 million, for notice dated February 9, 2021, wherein requiring Subsidiary Company to provide details /
the tax periods January 2017 to August 2019, was illegal. The Holding Company responded to clarification of adjustment of various inputs under section 8 of the Act relating to tax period July
the notice vide letter dated April 25, 2022. The proceedings were concluded by the DCIR and 2016 to June 2018. Subsidiary Company fully complied with the said notice and the assessing
demand of Rs 85.98 million along with default surcharge and penalty was raised by DCIR vide officer finalised the proceeding and passed an order by creating a demand to the tune of
assessment order dated May 31, 2022, passed under section 11 of the Sales Tax Act 1990. Rs. 367.62 million. Being aggrieved with the said order, Subsidiary Company filed an appeal
Being aggrieved, the Holding Company preferred an appeal before the CIR(A), which is pending before Commissioner Inland Revenue-Appeals (CIR-A). The case of Subsidiary Company was
adjudication. The management of the Holding Company is hopeful of favourable outcome of the heard, and the Honourable Commissioner confirmed the department treatment to the tune of
case, therefore, no provision has been incorporated in these consolidated financial statements. Rs. 216.19 million and annulled and remanded the remaining demand for reverification by the
department. The Subsidiary Company has contested the CIR-A appeal before ATIR. The case of
19.1.14 The Holding Company received show cause notice dated April 7, 2022 as per which it was Subsidiary Company had been heard by the Honourable bench however, the final order is still
alleged that the Holding Company’s claim of input sales tax, amounting to Rs 620.98 million, pending.
for the tax periods July 2019 to November 2021 was illegal. The Holding Company responded
to the notice vide letter dated March 25, 2022. The proceedings were concluded by the DCIR 19.1.19 The Deputy Commissioner Inland Revenue (DCIR) show caused Subsidiary Company vide
and demand of Rs 580.06 million along with default surcharge and penalty was raised by DCIR notice dated March 16, 2021, wherein requiring Subsidiary Company to provide details/
vide assessment order dated May 31, 2022 passed under section 11 of the Sales Tax Act 1990. clarification of adjustment of various inputs under section 8 of the Sales tax Act, 1990 (the Act)
Being aggrieved, the Holding Company preferred an appeal before the CIR(A), which is pending relating tax period July 2017 to December 2020. Subsidiary Company fully complied with the
adjudication. The management of the Holding Company is hopeful of favourable outcome of said notice and the assessing officer finalised the proceeding and passed an order by creating
the case, therefore, no provision has been recorded in these consolidated financial statements. a demand to the tune of Rs. 843.58 million. Being aggrieved with the said order, Subsidiary
Company filed an appeal before Commissioner Inland Revenue- Appeals (CIR-A). The case of
19.1.15 The Holding Company received show cause notice, dated April 26, 2021 in which it was Subsidiary Company was heard, and the Honourable Commissioner confirmed the department
confronted that the Holding Company has disposed of its fixed assets during the tax periods treatment to the tune of Rs. 580.29 million and annulled the remaining demand. The company
July 2015 to June 2017 without charging sales tax, aggregating to Rs 42.76 million. The Holding has contested the CIR-A appeal before Appellate Tribunal Inland Revenue (ATIR). The case of
Company responded to the notice vide letter dated May 7, 2021. The proceedings were Subsidiary Company had been heard by the Honourable bench however, the final order is still
concluded and the DCIR vide assessment dated August 23, 2021 passed under section 11 pending.
of the Sales Tax Act 1990 raised sales tax demand amounting to Rs. 42.76 million along with
default surcharge and penalty. Being aggrieved, the Holding Company preferred an appeal 19.1.20 The Deputy Commissioner Inland Revenue (DCIR) show caused Subsidiary Company vide
before the CIR(A), which was disposed of by the CIR(A) vide appellate order dated February notice dated March 18, 2021, wherein requiring Subsidiary Company to provide details/
clarification of adjustment of various inputs under section 8 of the Act relating to tax period July
320 321
2016 to July 2017. Subsidiary Company fully complied with the said notice and the assessing
------------------------------------- Rupees in thousand -----------------------------------

officer finalised the proceeding and passed an order by creating a demand to the tune of
824,604
1,194,487
15,785,041
15,903,426
271,986
272,070
44,428,063
46,725,126
136,622
692,849
26,167
43,112
64,831,070
369,883
118,385
84
2,297,063
7,409
16,945
548,818
-
Net book
value at
June 30,
Rs. 182.83 million. Being aggrieved with the said order, Subsidiary Company filed an appeal
2023
before CIR-A. The case of Subsidiary Company was heard, and the Honourable Commissioner
confirmed the department treatment to the tune of Rs. 96.35 million and annulled the remaining
demand. The company has contested the CIR-A appeal before ATIR. The case of Subsidiary
5,510,840
5,750,295
197,066
201,411
25,577,906
30,804,075
454,641
863,816
3,400
18,174
37,637,771
-
239,455
4,345
5,226,169
186,735
14,774
216,440
6,000
Company had been heard by the Honourable bench however, the final order is still pending.
June 30,
2023
At
19.1.21 Contingencies relating to tax matters are disclosed in note 33 to these consolidated financial
statements.
(18,014)
(19,006)
(310)
(47,279)
(401)
(66,686)
-
(992)
(401)
(46,969)
-
Disposals
Depreciation
in the consolidated financial statements.
748,836
779,775
30,403
30,427
2,184,502
2,869,478
27,061
89,546
2,287
10,652
3,779,878
-
30,939
24
684,976
2,207
8,365
60,278
-
For the
year
2023 2022
19.2 Commitments
4,762,004
4,970,520
166,663
170,984
23,411,418
27,953,603
427,890
821,549
1,113
7,923
33,924,579
-
208,516
4,321
4,542,185
184,528
6,810
203,131
6,000
July 01,
2022
At
19.2.1 In respect of:
- capital expenditure 3,257,391 5,623,145
Percentage
5.88-50
10-30
5-20
5-10
5-20
5-20
5-10
5-20
- irrevocable letters of credit for spare parts 400,478 423,764
Rate
20
33
20
10
-
-
-
- coal 1,992,761 1,972,000
5,650,630 8,018,909
824,604
1,194,487
21,295,881
21,653,721
469,052
473,481
70,005,969
77,529,201
591,263
1,556,665
29,567
61,286
102,468,841
369,883
357,840
4,429
7,523,232
194,144
31,719
765,258
6,000
------------------------ Rupees in thousand ------------------------
June 30,
2023
At
19.2.2 Guarantees given by banks on behalf of the Company are Rs. 1,101.35 million (2022: 1,037.04
million) in favour of Sui Northern Gas Pipeline Limited and Government Institutions.
Cost / Revalued amount
(49,067)
(50,849)
(476)
(67,008)
(401)
(118,258)
-
(1,782)
(401)
(66,532)
-
Disposals
19.2.3 Corporate guarantee given by the Company to the financial institutions related to credit facilities
amounting to Rs. 1,000 million (2022: Rs. 1,500 million) available to the Subsidiary Company.
Additions
2,450
2,450
5,722,077
5,722,077
11,895
11,895
16,589,772
16,589,772
58,403
471,917
566
17,666
22,815,777
-
1,900
17,100
411,614
-
19.2.4 The Subsidiary Company has arranged guarantees from different banks aggregating to Rs. 25
million (2022: Rs. 25 million) which comprises of a guarantee from Askari Bank Limited worth
Rs.15 million (secured with 100% margin) and a guarantee from MCB Bank Limited worth Rs.10
million in favour of Director Excise and Taxation Karachi.
822,154
1,192,037
15,573,804
15,931,644
457,157
461,586
53,465,264
60,990,278
533,336
1,151,756
29,001
44,021
79,771,322
369,883
357,840
4,429
7,525,014
192,244
15,020
420,176
6,000
July 01,
2022
At
2023 2022
20. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 20.1 64,831,070 45,846,742

Capital work in progress - at cost 20.2 1,676,796 15,352,800
Major spare parts and stand-by equipments 20.3 238,239 280,655
66,746,105 61,480,197
20.1 Operating fixed assets
Furniture, fixtures and equipment

- surplus on revaluation
- leasehold building
Plant and machinery
Share of joint assets

Quarry equipment
- leasehold land
Right of use asset
Freehold land
Vehicles
- cost
- cost
- cost
- cost
Owned
Total
322 323
324
Net book
At At At At
year June 30,
2021 2022 2021 2022 2022
Owned
Freehold land
- cost 822,154 - - 822,154 - - - - - 822,154
1,192,037 - - 1,192,037 - - - - 1,192,037

- cost 14,991,362 618,970 (36,528) 15,573,804 5-20 4,098,993 696,392 (33,381) 4,762,004 10,811,800
- surplus on revaluation 358,084 - (244) 357,840 5-20 177,779 30,892 (155) 208,516 149,324
15,349,446 618,970 (36,772) 15,931,644 4,276,772 727,284 (33,536) 4,970,520 10,961,124

- cost 455,040 2,117 - 457,157 5-10 133,126 33,537 - 166,663 290,494
- surplus on revaluation 4,429 - - 4,429 5-10 4,312 9 - 4,321 108
459,469 2,117 - 461,586 137,438 33,546 - 170,984 290,602
Plant and machinery

- cost 51,068,005 2,460,441 (63,182) 53,465,264 5-20 21,427,992 2,029,220 (45,794) 23,411,418 30,053,846
- surplus on revaluation 7,531,251 - (6,237) 7,525,014 5-20 3,857,097 688,642 (3,554) 4,542,185 2,982,829
58,599,256 2,460,441 (69,419) 60,990,278 25,285,089 2,717,862 (49,348) 27,953,603 33,036,675
Furniture, fixtures and equipment 507,812 29,393 (3,870) 533,335 10-30 403,730 27,579 (3,419) 427,890 105,445
Quarry equipment 192,244 - - 192,244 20 181,931 2,597 - 184,528 7,716
Vehicles 352,873 93,190 (25,887) 420,176 20 180,185 38,966 (16,020) 203,131 217,045
Share of joint assets 6,000 - - 6,000 10 5,998 2 - 6,000 -
1,058,929 122,583 (29,757) 1,151,755 771,844 69,144 (19,439) 821,549 330,206
Right of use asset

- leasehold land - 29,001 - 29,001 5.88-50 - 1,113 - 1,113 27,888
- leasehold building - 15,020 - 15,020 33 - 6,810 - 6,810 8,210
- 44,021 - 44,021 - 7,923 - 7,923 36,098
76,659,137 3,248,132 (135,948) 79,771,321 30,471,143 3,555,759 (102,323) 33,924,579 45,846,742
20.1.1 Depreciation charge for the year has been allocated as follows:
2023 2022
Cost of sales 36 3,686,523 3,487,516

3,779,878 3,555,760
20.1.2 Disposal of property, plant and equipment

Particulars Accumulated Net book Sale Gain /
Plant and Machinery
Feed Screw Conveyor Complete, Sketches No. 20 & 21 2,478 1,657 821 212 (609) Auction M/S.Muhammad Hayat Contractor
Centre Cone Of Cost Steel 760 344 264 80 1,078 998 Auction M/S.Muhammad Hayat Contractor
Tyre Dwg.No. N6222-0402 For White Cement Kiln 781 593 188 6,000 5,812 Return to Store Return to Store
Shell Kiln Drg.No. 6222-04 2,907 2,208 699 7,000 6,301 Return to Store Return to Store
Encoder , Model : Rhi 503 , Power Supply: 5 Vdc 102 78 24 63 39 Auction M/S.Muhammad Hayat Contractor
Load Cell ( For Scd Pfister Coal Bin ),Type: V335K 39 30 9 24 15 Auction M/S.Muhammad Hayat Contractor
Flow Control Switch, Type: Mk301-F21-St31-1-15 50 44 6 31 25 Auction M/S.Muhammad Hayat Contractor
Clamp For Wear Segment, Spl No : 50008582 1,871 283 1,588 1,142 (446) Auction M/S Ghulam Akbar
Pull Rod ,Drg. # 2.229334,Pn:839335,Spl # 50008582 2,045 313 1,732 10 (1,722) Return to Store Return to Store
Incremental Encoder, Type : Ma324-6-1024-Al2 345 60 285 7 (278) Return to Store Return to Store
Slip Ring Assembly For 4600Kw Motor, For Line 3 1,605 281 1,324 300 (1,024) Return to Store Return to Store
Controller Intecont Tursus Type Vbw 20650 111 98 13 68 55 Auction M/S.Muhammad Hayat Contractor
Sealing Plate Upper Specification: (Type:Drw 4.12) 919 827 92 25 (67) Return to Store Return to Store
Sealing Plate Lower Specification: (Type:Drw 4.14) 1,066 959 107 25 (82) Return to Store Return to Store
Bearing Housing Sofn-230 Bl 739 665 74 200 126 Return to Store Return to Store
Kiln Burner For 500Tpd(Clinker) 214 68 146 221 75 Return to Store Return to Store
Ep Unit Power Control For Gac-Ix B Of Nigata Engine 202 181 21 125 104 Auction M/S.Muhammad Hayat Contractor
Gear Box Assembly Type - Zk-128-K4-200 433 261 172 100 (72) Return to Store Return to Store
Turbine/Generator - WHRP 525 234 291 438 147 Auction M/S Ghulam Akbar
Centrifugal Pump Cap+170M3/H At6 Bar 697 628 69 91 22 Auction M/S.Muhammad Hayat Contractor
Fuzes Detonating For Is Limiter 3,102 1,588 1,514 - (1,514) Return to Store Return to Store
Fuzes Detonating For Is Limiter 1,034 751 283 - (283) Return to Store Return to Store
Gas Analyzer Uras26, Art. No.: 04526644/1010 1,086 977 109 393 284 Return to Store Return to Store
Profibus Card Ptq Module, Type: Ptq-Pdpmv1 209 188 21 104 83 Return to Store Return to Store
Auma Actuator ,Type: Sa 10.1-F10 , Comm: 691153 1,204 1,084 120 88 (32) Return to Store Return to Store
P&M Packing Plant 582 107 475 359 (116) Auction M/S.Muhammad Hayat Contractor
Tyre Dwg.No. N6222-0401 For White Cement Kiln 7,680 2,371 5,309 4,500 (809) Return to Store Return to Store
Solar Pv Modules High Efficiency 540-660 Watt 11,254 419 10,835 11,254 419 Return to Store Return to Store
Auma Actuator, G 80.3, Com No:13007302,Am 01.1 688 79 609 688 79 Return to Store Return to Store
CFPP 6,538 1,709 4,829 2,015 (2,814)
Total 50,850 19,005 31,845 36,561 4,716
325
326
Particulars

Vehicles
Honda Civic 2,936 1,608 1,328 3,600 2,272 Buy Back Nauman Ahmed
Suzuki Cultus 1,040 908 132 750 618 Buy Back Aamir Shahbaza Maseh
Suzuki Cultus 1,063 863 200 700 500 Buy Back Sajid Chauhdry
Suzuki Cultus 1,063 857 206 750 544 Buy Back Manzar Mehdi
Suzuki Cultus 1,063 858 205 700 495 Buy Back Muhammad Ashraf
Suzuki Cultus 1,063 863 200 700 500 Buy Back Waqas Chaudhry
Suzuki Cultus 1,063 862 201 710 509 Buy Back Imran Butt
Suzuki Cultus 1,063 831 232 825 593 Buy Back Muzaffar Hussain
Suzuki Cultus 1,124 870 254 760 506 Buy Back Babar Iqbal
Suzuki Cultus 1,124 864 260 730 470 Buy Back Mehmood Ali
Suzuki Cultus 1,124 861 263 780 517 Buy Back Hassan Raza
Suzuki Cultus 1,119 835 284 780 496 Buy Back Umair Saeed
Suzuki Cultus 1,124 841 283 780 497 Buy Back Umair Ikram
Suzuki Cultus 1,124 837 287 740 453 Buy Back Mutnazzam Nazir
Suzuki Cultus 1,124 839 285 770 485 Buy Back Rashid Khan
Suzuki Cultus 1,154 854 300 730 430 Buy Back Younas Bhatti
Suzuki Cultus 1,152 846 306 750 444 Buy Back Inamulah Khan
Suzuki Cultus 1,423 980 443 1,100 657 Buy Back Moeen Hasan Kazmi
Suzuki Cultus 1,419 975 444 1,200 756 Buy Back Saleh Muhammad
Suzuki Cultus 1,419 982 437 1,280 843 Buy Back Ali Haider
Suzuki Cultus 1,152 857 295 740 445 Buy Back Imran Malik
Toyota Yaris 2,815 592 2,223 2,250 27 Buy Back Miss Amna Nauman
Suzuki Cultus 1,419 967 452 1,350 898 Buy Back Ijaz Ahmad
Suzuki Cultus 1,063 876 187 730 543 Buy Back Usman Ghani
Honda Bikes 60 60 - 8 8 Auction M/S. Muhammad Idrees
C/F 31,905 22,128 9,777 24,413 14,636

Particulars Cost Mode of disposal Particulars of purchaser
B/F 31,905 22,128 9,777 24,413 14,636

Yamaha Bikes 77 71 6 8 2 Auction M/S. Muhammad Idrees
Suzuki Cultus 1,419 1,027 392 1,570 1,178 Auction M/S Saad Traders
Suzuki Cultus 1,419 1,026 393 950 557 Auction M/S Al Haj dealers
Suzuki Cultus 1,419 973 446 1,530 1,084 Buy Back Aamir Akbar
Corolla 2,381 1,934 447 1,920 1,473 Auction M/S Saad Traders
Suzuki Cultus 1,063 887 176 725 549 Buy Back Wahab-Ur-Rehman
Suzuki Cultus 1,063 883 180 730 550 Buy Back Javaid Iqbal
Suzuki Cultus 1,063 883 180 745 565 Buy Back Sibt-e-Hassan
Suzuki Cultus 1,063 883 180 730 550 Buy Back Mumtaz Hussain
Suzuki Cultus 1,063 873 190 740 550 Buy Back Saqib Ali
Suzuki Cultus 1,119 865 254 734 480 Buy Back Ahmed Alam
Suzuki Cultus 1,124 867 257 734 477 Buy Back Mohammad Nadeem Jameel
Suzuki Cultus 1,124 867 257 735 478 Buy Back Sultan Sikander
Honda Civic 3,640 2,816 824 3,040 2,216 Buy Back Sohail Sadiq EDF
Suzuki Cultus 1,419 1,023 396 1,510 1,114 Buy Back Mohammad Irfan Tahir Sr
Suzuki Cultus 1,419 971 448 1,520 1,072 Buy Back Gulzar Ahmed
Suzuki Cultus 1,419 958 461 1,530 1,069 Buy Back Hafiz Mohammad Umer Butt
Suzuki Cultus 1,419 944 475 1,530 1,055 Buy Back Shakeel Ahmed
Suzuki Cultus 1,603 997 606 1,565 959 Buy Back Mohammad Tahir
Suzuki Cultus 1,603 1,001 602 1,540 938 Buy Back Shabi ul Hassan
Suzuki Cultus 1,643 998 645 1,500 855 Buy Back Omer Farooq
Suzuki Cultus 1,674 976 698 1,570 872 Buy Back Shaukat Nadeem
Suzuki Cultus 1,558 999 559 1,450 891 Auction M/S Dewan Enterprises
Suzuki Cultus 1,672 976 696 1,540 844 Buy Back Waqas Hassan
Total 66,524 46,963 19,561 54,569 35,008
Office Equipments
SPLIT AIR CONDITIONER, 4 TON, 400V 476 310 166 10 (156) Return to Store Return to Store
Right of Use Asset
Leasehold building 401 401 - - - Retired Retired
2023 118,251 66,679 51,572 91,140 39,568
2022 135,948 102,323 33,626 30,583 (3,043)

327
2023 2022
20.1.3 Additions in operating fixed assets include transfers from capital work-in-progress amounting to 20.2 Movement in capital work-in-progress - at cost
Rs. 22,593 million (2022: Rs. 2,833.5 million).
20.1.4 Ownership of the housing colony’s assets included in the operating fixed assets is shared by the
Additions during the year 8,916,978 15,332,007
Company jointly with Agritech Limited in ratio of 101:245 since the time when both the companies
Less: Transfers during the year 20.1.3 (22,592,981) (2,833,500)
were managed by Pakistan Industrial Development Corporation. These assets are in possession
of the housing colony establishment for mutual benefits.
At end of the year 1,676,797 15,352,800
20.1.5 Buildings, roads, bridges and railway sidings, plant and machinery are located at freehold land
20.2.1 Capital work-in-progress - at cost
measuring 10,148 kanals located at Iskandrabad District Mianwali.
Civil Works 372,317 3,347,313
20.1.6 The Company has leased land measuring 127 kanals located at Iskandrabad District Mianwali to
Plant and machinery 588,012 10,691,775
Maple Leaf Power Limited, a wholly owned subsidiary of the Company. The lease is classified as
Roads and bridges 12,952 -
operating lease in these consolidated financial statements.
Land 10,083 -
Intangible Assets - Oracle Finance / PXP System 47,661 -
20.1.7 Had the certain classes of operating fixed assets not been revalued the net book value would
Un Allocated capital expenditure 84,517 -
have been as follows:
Vehicles 266 -
Advances to suppliers against:
- civil works 130,188 449,900
2023 2022
- plant and machinery 409,275 861,860
- intangible Assets 19,575 -
- vehicles 1,951 1,952
Freehold land 824,604 822,154
1,676,797 15,352,800
Buildings on freehold land 15,785,041 10,811,800
Roads, bridges and railway sidings 271,986 290,494
20.3 This represents stores held for capital expenditure related to Company’s expansion project.
Plant and machinery 44,428,063 30,053,846
20.4 During the year, borrowing costs of Rs. 1,083 million (2022: Rs. 343 million) were capitalized.
61,309,694 41,978,294
20.5 Average effective rate of borrowing cost was 2.50% to 23.69% (2022: 2.50% to 16.27%).
20.1.8 The latest valuation of Group assets was carried as at 30 June 2020 and the forced sale value as
at that date is given below: 2023 2022
21. INTANGIBLE ASSETS - COST
(Rupees in
thousand) At beginning of the year 90,671 83,885
Additions during the year - 6,786
Freehold land 953,630 At end of the year 90,671 90,671

Buildings on freehold land 8,099,496
Accumulated Amortization
Roads, bridges and railway sidings 39,842
Plant and machinery 25,342,737
Amortization for the year 21.1 3,469 2,388
34,435,705 At end of the year 83,725 80,256
Net book value 6,946 10,415

20.1.9 All assets of the Group as at June 30, 2023 are located in Pakistan and are in the name of the
Group. Amortization rate - % per annum 33% 33%
21.1 Amortization charge for the year has

been allocated as follows:
Cost of sales 36 493 740

3,469 2,388
328 329
2023 2022 2023 2022
22. LONG TERM INVESTMENT 26. STOCK-IN-TRADE
Investment in Maple Leaf Power Limited - Unquoted 22.1 - - Raw material 121,609 108,905
Investment in Maple Leaf Industries Limited - Unquoted 22.2 - - Packing material 1,160,640 258,414
Work-in-process 1,856,763 1,775,210
- - Finished goods 675,151 499,536
3,814,163 2,642,065
22.1 The Company holds 100% (2022: 100%) shares in Maple Leaf Power Limited, a wholly owned
subsidiary of the Company. 27. TRADE DEBTS
22.2 The Company holds 100% (2022: Nil %) shares in Maple Leaf Industries Limited, a wholly owned Export debtors 25,313 26,995
subsidiary of the Company. Local debtors
2023 2022 Considered good - unsecured 2,575,675 2,039,217
Note (Rupees in thousand) Considered doubtful - unsecured 27.1 230,049 50,049
23. LONG TERM LOANS TO EMPLOYEES - SECURED
2,831,037 2,116,261
House building 3,610 4,677
Vehicles 1,761 1,395 Less: Provision for expected credit loss (230,049) (50,049)
Others 23,637 24,162
2,600,988 2,066,212
23.1 29,008 30,234
Less: Current portion presented under current assets 28 (10,919) (10,868)
27.1 The movement in provision for impairment of receivables is as follows:
18,089 19,366
2023 2022
23.1 These loans are secured against employees' retirement benefits and carry interest at the rates
ranging from 6% per annum (2022: 6% per annum). These loans are recoverable in 30 to 60 At beginning of the year 50,049 293,392
monthly instalments. Expected credit loss charge for the year 191,421 209,920
Debtors written off (11,421) (453,263)
23.2 This includes loans to executives amounting to Rs. 2.46 million (2022: Rs.4.24 million). The
maximum aggregate amount outstanding from key management personnel at any time during At end of the year 230,049 50,049
the year calculated with reference to month end balances is Nil (2022: Rs. 2.2 million). Further,
no amount is due from Directors and the Chief Executive Officer as at June 30, 2023 (2022: Nil).
27.2 Trade debts are non-interest bearing and ageing analysis of trade debts is as follows:
24. LONG TERM DEPOSITS
2023 2022
This includes deposits with various utility companies, regulatory authorities and others. (Rupees in thousand)
2023 2022 Not past due 1,170,261 1,342,565

Note (Rupees in thousand) Past due:
25. STORES, SPARE PARTS AND LOOSE TOOLS 1-90 days 1,269,257 568,615
91-180 days 153,260 83,753
Stores 25.1 5,766,047 9,165,462 181-270 days 36,071 72,081
Spare parts 4,671,192 4,128,303 271-365 days 41,690 16,419
Loose tools 25,124 31,561 366-above 160,498 32,828
10,462,363 13,325,326 2,831,037 2,116,261
Less: provision for doubtful balances (230,049) (50,049)

25.1 This include items in transit amounting to 187.63 million (2022: Rs. 98.4 million).
2,600,988 2,066,212
330 331
2023 2022 2023 2022
28. LOANS AND ADVANCES Unrealized fair value gain / (loss)
Unrealized fair value gain / (loss)
Advances - unsecured, considered good At beginning of the year (1,154) 24,648
Fair value loss for the year - P&L 39 (6,773) (25,802)
- Employees 28.1 35,242 28,740 Fair value gain for the year - OCI 263,437 -
- Suppliers 28.2 673,904 378,249
- Government Authorities 28.3 172,807 180,543 At end of the year 255,510 (1,154)
881,953 587,532
Closing balance 3,425,056 28,846
Current portion of long term loans to employees 23 10,919 10,868
Investment at Amortised cost - debt instrument
Refunds due from government 28.3 7,588 7,588 Term deposit receipts 29.1 273,500 169,500
900,460 605,988 29.2 3,698,556 198,346
28.1 This includes loans to executives amounting to Rs. 3.03 million (2022: Rs. 4.00 million) including
loans to key management personnel (Mr. Amir Feroze and Mr. Yahya Hamid) amounting to Rs. 29.1 This represents term deposits having a one-year maturity from April 3, 2023 till June 5, 2024
2.97 million (2022: Rs.3.25 million). The maximum aggregate amount outstanding from key carrying mark-up at the rate ranging from 8.50% to 15.80% per annum.
management personnel (Mr. Amir Feroze and Mr. Yahya Hamid) at any time during the year
calculated with reference to month end balances is Rs. 3.37 million (2022: Rs. 3.25 million). 29.2 There has been no investment in any foreign company during the year (2022: Nil).
Further, no amount is due from other directors at the year end (2022: Rs. Nil).
2023 2022
28.2 This includes an amount of Rs. 17.95 million (2022: Rs. 121.58 million) advanced to the Ministry (Rupees in thousand)
of Railways for transportation of coal and cement. 30. SHORT TERM DEPOSITS AND PREPAYMENTS
28.3 This represents amount paid to Government under protest for various cases which have been Margin against:
decided in favour of the Holding Company. - letters of credit 18,078 69,316
2023 2022 - bank guarantees 461,907 436,955
(Rupees in thousand) Prepayments 17,850 17,238
29. SHORT TERM INVESTMENT Short term deposits 95 34,106
Investment at fair value through profit or loss 497,930 557,615
Next Capital Limited: 31. ACCRUED PROFIT

4,269,375 (2022: 3,712,500) fully paid
ordinary shares of Rs. 10 each This represents profit accrued on deposits, saving accounts and term deposit receipts at rates
Equity held: 7.50% (2022: 7.50%) ranging from 12.25% to 19.50% (2022: 8.50% to 12.25%).
Cost of Investment 30,000 30,000
2023 2022
Mutual Funds: Note (Rupees in thousand)
CDC-Trustee MCB Cash Management Optimizer 900,000 - 32. OTHER RECEIVABLES
Alfalah GHP Money Market Fund 100,000 -
CDC-Trustee NBP Income Fund 902,461 - Due from related party - unsecured 32.1 11,666 38,402
Others 32.2 10,239 13,859
1,902,461 -
Investment at fair value through other 21,905 52,261
comprehensive income - Listed securities
Pioneer Cement Limited
17,321,046 (2022: Nil) fully paid 32.1 This represents balance receivable from Kohinoor Textile Mills Limited. The maximum
ordinary shares of Rs. 10 each aggregate amount outstanding from Kohinoor Textile Mills Limited at any time during the year
Equity held: 7.63% (2022: Nil) calculated with reference to month end balances is Rs. 43.93 million (2022: 154.90 million).
Cost of Investment 1,237,085 -
32.2 This incudes Rs. 9.77 million (2022: Rs. 11.02 million) receivable against export rebate.
3,169,546 30,000
332 333
2023 2022 the Holding Company. Being aggrieved, the Holding Company has preferred an appeal before
33. ADVANCE INCOME TAX - NET OF PROVISION (Rupees in thousand) the ATIR, which is pending adjudication. However, management and tax advisor of the Holding
Company are hopeful of favourable outcome of the case. Accordingly no provision has been
incorporated in these consolidated financial statements.
At beginning of the year 626,989 1,970,899
Tax deducted / deposited at source 717,347 575,384
33.5 Through notices dated February 26, 2021, the Commissioner Inland Revenue (CIR) selected
Income tax paid 1,156,807 365,366 the company’s case for audit of its income tax affairs for the tax years 2015, 2016, 2017, 2018 &
Tax refunds received (412,577) (340,366) 2019. The company challenged the vires of selection by the CIR before the Honourable Lahore
2,088,566 2,571,283 High Court and the Honourable Lahore High Court, vide interim order dated April 1, 2021,
(Provision) / reversal during the year: directed that the audit proceedings shall continue, however, no final order shall be passed till
- current (2,109,908) (1,944,288) the disposal of writ petition.
- prior - -
Subsequently, the tax authorities issued show cause notices under section 122(9) & section
111 of the Ordinance dated June 11, 2021 and June 25, 2021 respectively, for all five tax years
(2,109,908) (1,944,288) which are yet to be responded to. Since the matter is pending before the Honourable Lahore
(21,342) 626,995 High Court, which has barred the tax authorities from passing any final order till the disposal.
Reclassified to provision for taxation 21,342 -
33.6 Through notice dated October 9, 2020, the Additional Commissioner Inland Revenue (ACIR)
At end of the year - 626,995 initiated proceedings against the company under section 122(9) read with section 122(5A) of
the Ordinance for tax year 2019.
33.1 Through order no.18/2009 dated December 24, 2009, the tax department finalized the
adjudication proceeding in respect of audit conducted by the department auditors for tax year The Holding Company requested ACIR to merge such proceedings with the audit proceedings
2009 and raised a demand of principal sales tax and FED aggregating to Rs. 336.74 million initiated under section 177 of the Ordinance for such tax year as the issues highlighted in the
along with applicable default surcharges and penalties. The Holding Company preferred subject notice have also been confronted to the company through audit proceedings. There
appeal against such order under the applicable provisions of Sales Tax Act, 1990 and Federal has been no further correspondence from the department on this score.
Excise Act, 2005 before the ATIR. During the year, the Company’s appeal has been disposed of
through appellate order dated March 24, 2020. Through the said appellate order, the ATIR has 33.7 Through notice dated May 21, 2020, the Additional Commissioner Inland Revenue initiated
decided the matter in favour of the Holding Company on legal grounds. proceedings against the Holding Company under section 122(9) read with section 122(5A) of
the Ordinance. The notice was duly responded dated August 25, 2020.
33.2 Deputy Commissioner Inland Revenue through order dated July 31, 2017 raised a demand of
Rs. 2.46 million under section 122(5A) for the tax year 2011 of the Income Tax Ordinance, 2001. The above proceedings were concluded by the ACIR through amendment order dated
The demand was later reduced to Rs. 2.06 million on March 14, 2018. The Holding Company September 2, 2020 passed under section 122(5A) of Ordinance through which income tax
has preferred an appeal before CIR(A). During the year, CIR(A), through order dated April 17, demand of Rs 376.182 million was created against the Holding Company. The Holding Company
2020, decided the issues relating to enhancement of minimum tax liability and apportionment preferred an appeal against the amendment order before the Commissioner Inland Revenue.
of admissible / inadmissible deductions against the Holding Company. Being aggrieved, the
Holding Company has preferred an appeal before the ATIR, which is pending adjudication. The CIR(A), through appellate order dated December 30, 2020, decided all the matters in
However, the management and tax advisor of the Holding Company are hopeful of favourable favour of the company except for issues relating to claim of depreciating & initial allowance,
outcome of the case. Accordingly no provision has been incorporated in these consolidated without reducing tax credit claimed under section 65B of the Ordinance from the cost of the
financial statements. asset, apportionment of Workers’ Profit Participation Fund, computation of accounting income
by apportioning deductions on account of donations, provision for Workers’ Welfare Fund &
33.3 The Additional Commissioner Inland Revenue (ACIR) initiated proceedings related to the tax year loss on investments, and disallowance of claim of advances written off. The Holding Company,
2017, vide order dated March 13, 2019 against the Holding Company under section 122(9) read
as well as the tax authorities, have preferred an appeal before the Appellant Tribunal Inland
with section 122(5A) of the Income Tax Ordinance 2001. The notice was duly responded by tax
Revenue (ATIR), which is pending adjudication. On the basis of available valid precedents, we
advisor of the Holding Company. The proceedings were concluded and ACIR raised an additional
consider that the company is likely to obtain relief from the appellate authorities.
tax demand of Rs. 303.36 million through amendment order dated January 27, 2020 passed
under section 122(5A) of the Ordinance. The Holding Company preferred an appeal against
the amendment order before the Commissioner Inland Revenue (Appeals) - CIR(A). The CIR(A) 33.8 The Deputy Commissioner Inland Revenue (DCIR) passed an appeal effect order dated July
through his order dated May 6, 2020, decided all the matters in favour of the Holding Company 31, 2017 related to tax year 2015 under section 124/129 of the Income Tax Ordinance 2001
except for issues relating to claim of depreciation and initial allowance without reducing tax giving effect to an earlier order passed by CIR(A). While passing the order, the DCIR made
credit claimed under section 65B of the Ordinance from the cost of the asset and apportionment certain errors which were assailed before CIR(A) in second round of appeal. During the year
of advertisement and sales promotion expenses. The Holding Company, as well as the tax 2020, CIR(A), through order dated April 17, 2020, decided the issues relating to enhancement
authorities, have preferred an appeal before the Appellant Tribunal Inland Revenue (ATIR), which of minimum tax liability and apportionment of admissible deductions, aggregating to Rs. 180
is pending adjudication at the year end. million, against the Holding Company. Being aggrieved, the Holding Company has preferred an
appeal before the ATIR, which is pending adjudication. However, management and tax advisor
However, being prudent the Holding Company has recorded the provision of Rs. 46.88 million in of the Company are hopeful of favourable outcome of the case. Accordingly no provision has
these consolidated financial statements. Management of the Holding Company is confident of been incorporated in these consolidated financial statements.
favourable outcome of the case. Therefore, no further provision has been incorporated in these
consolidated financial statements. 33.9 The Additional Commissioner of Inland Revenue (ACIR), vide order dated May 3, 2017 raised
income tax demand amounting to Rs 1,001.38 million related to the tax year 2016 primarily on
33.4 The Deputy Commissioner Inland Revenue (DCIR) passed an appeal effect order dated July 31, account of inadmissibility of tax credit under section 113(2)(c) of the Income Tax Ordinance
2017 under section 124/129 of the Ordinance, giving effect to an earlier order passed by CIR(A). 2001. Being aggrieved, the Holding Company filed a writ petition in the Honourable Lahore
While passing the order, the DCIR made certain errors which were assailed before CIR(A) in High Court (LHC) in May 2017 which is pending adjudication. The Holding Company and the
second round of appeal. CIR(A), through order dated April 17, 2020, decided the issues relating tax / legal advisor of the Holding Company are expecting favourable outcome of the case.
to enhancement of minimum tax liability and apportionment of admissible deductions against Therefore, no provision has been booked in these consolidated financial statements.
334 335
33.10 For tax year 2021, the Holding Company received the notice dated January 20, 2022 where 2023 2022
the Additional Commissioner Inland Revenue (ACIR) initiated proceedings against the Holding Note (Rupees in thousand)
Company under section 122(9) read with section 122(5A) of the Income Tax Ordinance 2001. 34. CASH AND BANK BALANCES
The Holding Company responded to the notice vide letter dated June 23, 2022. The ACIR
concluded the proceedings vide amendment order dated August 5, 2022, through which the - Cash in hand in local currency 3,032 2,780
income tax refund has been curtailed to Rs. 862.51 million. Being aggrieved, the Company is - Cash in hand in foreign currency 2,527 1,791
in the process of filing an appeal against the amendment order before the CIR(A). The Holding
Company and the tax advisor of the Holding Company are expecting favourable outcome of the 5,559 4,571
case, therefore, no provision has been booked in these consolidated financial statements. Cash at bank
33.11 With respect to the tax year 2012, the Holding Company received the notice dated March 7,
2014 from tax department for furnishing books of accounts / details / documents for audit Current accounts:
under section 177 of the Income Tax Ordinance 2001. In response, the Holding Company filed
reply / explanation, which the Officer Inland Revenue (OIR) found unsatisfactory to the extent - foreign currency 29,912 15,597
of some points which were confronted through notice, dated April 23, 2019 under section - local currency 34.1 330,964 465,683
122(4)/122(5)/122(9) of the Income Tax Ordinance 2001. Subsequently, during the year 2014,
the OIR amended the assessment under section 122(4) /122(5) of the Income Tax Ordinance 360,876 481,280
2001, in the light of record available with him vide order dated April 30, 2019 and reduced the Deposit accounts 34.2 383,817 331,393
losses by making additions of Rs. 256 million. Being aggrieved, the Holding Company filed an
appeal before CIR(A) dated August 7, 2019. The case was heard before CIR(A) dated December 744,693 812,673
14, 2012 in which the CIR(A) upheld the additions of Rs. 116 million, remand back total additions
of Rs. 113 million and delete total additions of Rs. 27 million vide order dated December 31, 750,252 817,244
2021. Being aggrieved with the treatment of CIR(A) the Holding Company filed an appeal before
ATIR dated March 15, 2022 which is pending for adjudication at the year end. The Holding
Company and the tax advisor of the Company are expecting favourable outcome of the case. 34.1 These include balances of aggregate amount of Rs. 19.32 million (2022: Rs. 16.59 million)
Therefore, no provision has been booked in these consolidated financial statements. placed under an arrangement permissible under Shariah.
33.12 The Holding Company filed writ petition challenging the legality and validity of amendments 34.2 These carry return ranging between 11.00% to 19.50% (2022: 6.00% to 12.50%) per annum.
made in the Section 65B of the Income Tax Ordinance, 2001 through Finance Act, 2019 whereby These include deposits amounting to Rs. 1.8 million (2022: Rs. 12.39 million) placed under
rate of tax credit under Section 65-B of the Ordinance for the tax year 2019 was reduced from an arrangement permissible under Shariah. Remaining balances represent deposits with
10% to 5%. Total amount of tax credit involved in the tilted petition is Rs. 1,757,292,581/-. The conventional banks.
said petition is pending before Lahore High Court and next date is yet to be fixed for hearing.
2023 2022
The Subsidiary Company (Rupees in thousand)
33.13 During the year, The Deputy Commissioner Inland Revenue (DCIR) issued a series of show 35. SALES - NET
caused notices to Subsidiary Company spanning the tax years 2017 through 2022, wherein
requiring Subsidiary Company to provide details / clarification of annual statement of tax Gross local sales 82,063,434 66,251,395
collected or deducted under rule 44 of the Income Tax Rules, 2002 for each tax year. Subsidiary Less:
Company fully complied with the said notices and the assessing officer finalised the proceedings Federal Excise duty (6,911,333) (6,973,716)
and passed orders by creating demands under section 161 of the Income Tax Ordinance, 2001 Sales Tax (13,494,564) (10,631,729)
as provided in the table below. Being aggrieved with the said orders, Subsidiary Company Discount and others (952,543) (726,418)
filed appeals before Commissioner Inland Revenue-Appeals (CIR-A). The cases of Subsidiary Commission (355,676) (275,582)
Company had been heard by the CIR-A however, the final orders are still pending.
(21,714,116) (18,607,445)
Tax Year Tax charged under Section 161 of ITO 2001
(Rupees in thousand) Net local sales 60,349,318 47,643,950
Export sales 1,725,941 875,672
2017 420,194
2018 227,081 62,075,259 48,519,622
2019 298,251
2020 209,037
2021 1,095,795
2022 151,937
in the financial statements.
336 337
2023 2022 2023 2022
35.1 Disaggregation of Revenue (Gross sales) 36. COST OF SALES
Type of Customers Raw materials consumed 36.1 2,880,056 2,388,979

Packing materials consumed 3,376,679 3,065,308
Government Customers 25,796 14,683
Fuel and power 29,087,220 22,524,184
Non-Government Customers 83,763,579 67,112,384
Stores, spare parts and loose tools consumed 1,077,375 1,380,128
Salaries, wages and other benefits 36.2 1,562,046 1,364,635
83,789,375 67,127,067
Insurance 133,400 94,061
Primary Geographical Markets
Repairs and maintenance 559,829 437,027
Depreciation 20.1.1 3,686,523 3,487,516
Pakistan 82,063,434 66,251,395
Amortization 21.1 493 740
Afghanistan 1,596,388 787,476 Vehicles running and maintenance 441,906 225,507
Mozambique 2,553 1,540 Freight and forwarding 1,749,597 699,664
Nigeria - 1,358 Other expenses 36.3 154,377 140,779
Ethiopia 2,741 1,658
44,718,878 35,810,227
Oman 11,553 25,356 Work in process:
Qatar 4,320 5,075 At beginning of the year 1,775,210 1,373,133
Seychelles 6,935 - At end of the year (1,856,759) (1,775,210)
Sri Lanka 36,674 32,685
(81,549) (402,077)
Tanzania 64,777 20,524
Cost of goods manufactured 44,637,329 35,408,150
83,789,375 67,127,067
Finished goods:
35.2 Break up of export sales At beginning of the year 499,536 371,669
At end of the year (675,151) (499,536)
Category
Afghanistan Advance 1,596,388 787,476 (175,615) (127,867)
Mozambique Advance 2,553 1,540
Cost of sales 44,461,714 35,280,283
Nigeria Advance - 1,358
Ethiopia L/C 2,741 1,658
Oman Advance 11,553 25,356 36.1 Raw materials consumed
Qatar Advance 4,320 5,075
Seychelles Advance 6,935 -
Add: Purchases made during the year 2,892,761 2,388,126
Sri Lanka Advance 36,674 32,685
Tanzania Advance 64,777 20,524 3,001,666 2,497,884
Less: At end of the year (121,609) (108,905)
1,725,941 875,672
2,880,057 2,388,979
36.2 Salaries, wages and other benefits expense includes contribution to provident fund trust
as mentioned in note 15.6 to these consolidated financial statements.
36.3 Other expenses include housing colony expenses aggregating to Rs. 99.016 million (2022:
Rs. 77.72 million).
338 339
2023 2022 2023 2022
37. DISTRIBUTION COST Note (Rupees in thousand) 39. OTHER CHARGES Note (Rupees in thousand)
Salaries, wages and other benefits 37.1 396,714 288,873 Donation 39.1 42,355 6,605
Travelling and conveyance 281,716 209,953 Workers' Profit Participation Fund (WPPF) 16.3 124,176 427,064
Vehicle running and maintenance 111,336 52,990 Workers' Welfare Fund (WWF) 16.4 220,943 112,811
Postage, telephone and fax 10,086 7,831 Un-realised loss on investments 29 6,773 25,802
Printing, stationery and office supplies 6,650 5,060 Exchange loss- net 700,620 255,271
Entertainment 15,847 14,300 Loss on disposal of property, plant and equipment 20.1.2 - 3,043
Depreciation 20.1.1 25,689 17,897 1,094,867 830,596
Legal and professional charges 12,675 1,949
Advertisement and sale promotions 1,044,615 812,020 39.1 Donations for the year have been given to:
Fee and subscription 64,328 48,438
Other expenses 20,970 14,000 Maple CSR Initiative as per DC Office requirement 3,476 -
Daud Khel Police Station 248 -
2,001,499 1,483,876 Sunshine Trust 5,000 -
Earth Quick in Turkey & Syria 1,410 -
37.1 Salaries, wages and other benefits expense includes contribution to Provident Fund Trust MAYO Hospital (Baby Incubator) - 1,319
amounting to Rs. 15.74 million (2022: Rs. 13.52 million) and gratuity and compensated absence Dialysis centre in AGL hospital - 1,000
as mentioned in note 15.6 to these consolidated financial statements. Daud Khel Water Supply Project 365 726
Beaconhouse National University (Scholarship) 782 1,358
2023 2022 Akhuwat Islamic Micro Finance 15,000 -
38. ADMINISTRATIVE EXPENSES Note (Rupees in thousand) Financial assistance for the deceased worker - 600
Shafaullah 270 120
Salaries, wages and other benefits 38.1 734,406 487,744 Local schools at Daud Khel 100 1,482
Travelling 136,646 74,235 Kinnaird College Lahore 112 -
Vehicle running and maintenance 104,491 54,806 Aga Khan Planning , Building Service 15,000 -
Postage, telephone and fax 18,987 16,025 Miscellaneous Donations in the form of cement 592 -
Printing, stationery and office supplies 58,134 37,673
Entertainment 45,779 32,499
42,355 6,605
Utilities expenses 49,794 44,245
38.1.1 None of the Directors of the Company or their spouses have any interest in donees.
Legal and professional charges 38.2 67,613 41,472
Consultancy fee and subscription 60,378 55,049
2023 2022
Depreciation 20.1.1 64,996 50,347
40. OTHER INCOME Note (Rupees in thousand)
Amortization 21.1 2,976 1,648
Advances / Receivable written off 2,509 9,209
Income from financial assets
Other expenses 20,231 13,475 Profit on bank deposits 40.1 55,623 24,598
Interest on loans to employees 278 319
1,398,611 977,472
Interest on advances to the Holding & Subsidiary companies - -
Gain on investment from mutual fund 8,429 -
38.1 Salaries, wages and other benefits expense includes contribution to Provident Fund Trust
Gain on disposal of property, plant and equipment 39,568 -
as mentioned in note 15.6 to these consolidated financial statements. 103,898 24,917
38.2 Legal and professional charges include the following in respect of Auditors' remuneration for:
Income from non-financial assets
2023 2022 Sale of scrap 4,753 3,470
(Rupees in thousand) Rental income - 1,149
Annual statutory audit 3,900 2,600 Miscellaneous 38,669 30,673
Interim review 650 650 43,422 35,292
Other certification 900 1,440
Taxation - 630 147,320 60,209
Out of pocket expenses 825 695
40.1 This includes profit earned on deposits under arrangements which are permissible under
6,275 6,015 Shariah amounting to Rs. 0.59 million (2022: Rs. 0.64 million). The remaining profit relates to
interest / mark-up based arrangements from conventional banks.
38.3 The Company has shared expenses aggregating Rs. 36.49 million (2022: Rs. 21.57 million) on
account of combined offices with the Holding Company. These expenses have been recorded
in respective account.
340 341
2023 2022 43. EARNINGS PER SHARE - BASIC AND DILUTED Unit 2023 2022
41. FINANCE COST 43.1 Basic earnings per share
Profit / interest / mark up on: Profit after taxation Rupees in '000 5,770,762 4,553,125
- Long term loans and finances 8 1,960,526 1,114,050
- Short term borrowings 18 343,849 452,218 Weighted average number of
ordinary shares No. of shares in '000 1,073,405 1,097,524
2,304,375 1,566,268
Rupees 5.38 4.15
Notional interest on unwinding of retention
money payable 2,790 27,828
Notional interest on unwinding of payable to 2023 2022
government authority 216 9,871 (Rupees in thousand)
Interest on lease liabilities 11 5,038 2,377 43.2 Weighted average number of ordinary shares
Bank and other charges 68,408 51,928
Outstanding number of shares before right issue 1,097,524 1,098,346
2,380,827 1,658,272
Less: Impact of own shares purchased (24,119) (822)
42. TAXATION
1,073,405 1,097,524
Income tax
- current 2,109,908 1,944,288
- prior - - 43.3 There is no dilution effect on the basic earnings per share.
2,109,908 1,944,288 2023 2022

Deferred 2,812,970 1,641,999 Note (Rupees in thousand)
44. CASH AND CASH EQUIVALENTS
4,922,878 3,586,287
Short term running finance 18.2 - (1,396,990)
Temporary bank overdrafts - unsecured 18.4 - (505)
42.1 Tax charge reconciliation Cash and bank 34 750,252 817,244
42.1.1 Numerical reconciliation between 750,252 (580,251)

tax expense and accounting profit:
Applicable tax rate as per Income Tax Ordinance, 2001 29% 29%
Tax on accounting profit 3,103,618 2,357,308

Impact of super tax under section 4E 437,659 694,910
Effect of final tax regime (12,193) (24,171)
Effect of exempt income (297,698) (235,624)
Change in tax rate and proportion of local and export sales 1,693,461 849,050
Other (1,969) (55,186)
4,922,878 3,586,287
342 343
45. RELATED PARTY TRANSACTIONS AND BALANCES 46. REMUNERATION OF CHAIRMAN, CHIEF EXECUTIVE, DIRECTORS, NON-EXECUTIVE
DIRECTORS AND EXECUTIVES
The Company is a subsidiary of Kohinoor Textile Mills Limited (the “Holding Company”), accordingly
all the subsidiaries and associated companies of the Holding Company are related party of the The aggregate amounts charged in the consolidated financial statements for the year for remuneration,
Company. In addition Company’s related parties comprises of the Subsidiary Company, directors of including all benefits to the Chairman, Chief Executive, Directors and Executives of the Group are as
the Company key management personnel and post employment retirement plan. Amount due from follows:
and due to related parties are shown under respective notes. Other significant transactions and
balances with related parties except those disclosed elsewhere are as follows: 2023
Directors
2023 2022
Name of parties Relationship Transactions (Rupees in thousand) Chief
a) Kohinoor Textile Mills Limited Holding Company Executive
(56.51% equity held
2022: 55.22% equity held) Sale of goods to related party 2,142 101,341 (----------------------- Rupees in thousand ----------------------- )
Purchase of fixed assets 6,022 -
Short term benefits
Managerial remuneration 150,048 29,759 - 472,462
Expenses paid by related party on behalf of the Company 36,489 21,666
House rent 5,850 1,630 - 91,653
Expenses paid by the Company on behalf of related party - 1,948
Medical 5,850 2,237 - 39,915
Due from related party 11,664 38,402 Conveyance 2,338 1,961 - 88,120
b) Maple Leaf Capital Limited Associated Company Utilities 5,175 1,746 - 60,962
(Common management) None - -
Advisory arrangement - - 96,000 -
c) Key management personnel Key management personnel Remuneration and other benefits 456,046 255,683
169,261 37,333 96,000 753,112
d) Employee benefits Post employment benefits
Gratuity Post employment benefit plan Contribution 41,171 27,577 Contribution to Provident
Provident Fund Trust Employees benefit fund Contribution 281,503 211,461 Fund Trust 5,850 2,237 6,240 39,824
175,111 39,570 102,240 792,936

45.1 Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity. The Company considers all members of their Numbers 1 1 7 164
management team, including Chief Executive Officer and Directors to be its key management
personnel and these are disclosed below.
2022
Name Relationship % of shareholding in the Company
Directors
Mr. Tariq Sayeed Saigol Director / Key management personnel 0.0031% Chief
Mr. Sayeed Tariq Saigol Director / Key management personnel 0.0010% Executive
Mr. Taufique Sayeed Saigol Director / Key management personnel 0.0015% (----------------------- Rupees in thousand ----------------------- )
Short term benefits
Mr. Waleed Tariq Saigol Director / Key management personnel 0.0010%
Managerial remuneration 36,199 24,947 - 315,309
Mr. Danial Taufique Saigol Director / Key management personnel 0.0005% House rent 4,433 - - 64,812
Ms. Jahanara Saigol Director / Key management personnel 0.0002% Medical 2,726 1,676 - 24,089
Mr. Shafiq Ahmed Khan Director / Key management personnel 0.0014%
Conveyance 1,632 1,188 - 37,254
Utilities 4,942 2,361 - 50,268
Mr. Zulfikar Monnoo Director / Key management personnel 0.0003% Advisory arrangement - - 52,501 -
Mr. Syed Mohsin Raza Naqvi Director / Key management personnel N/A
49,932 30,172 52,501 491,732
Mr. Sohail Sadiq Key management personnel N/A
Mr. Yahya Hamid Key management personnel N/A Post employment benefits
Mr. Amir Feroze Key management personnel N/A
Fund Trust 2,726 1,676 2,963 24,089
Mr. Zeeshan Malik Bhutta Key management personnel N/A
Mr. Nasir Iqbal Key management personnel N/A 52,658 31,848 55,464 515,821
Mr. Tariq Ahmed Mir Key management personnel N/A
Numbers 1 1 7 110
Mr. Amer Bilal Key management personnel N/A
Mr. Muhammad Basharat Key management personnel N/A
46.1 The Chief Executive, Directors and some Executives are also provided with company maintained
cars in accordance with the respective policies.
46.2 Aggregate amount charged in these consolidated financial statements in respect of meeting
fee paid to Directors is Rs. 0.58 million (2022: Rs. 0.34 million).
344 345
47. CAPACITY AND PRODUCTION 48.2 Information about reportable segments
Capacity Actual Production Information related to each reportable segment is set out below. Segment operating profit or
2023 2022 2023 2022 loss as included in internal management reports reviewed by the Group’s top management
is used to measure performance because management believes that such information is the
------------------------------ Metric tons ------------------------------ most relevant in evaluating the result of the respective segments relative to other entities that
operate in the same industries.
Clinker 7,100,000 5,700,000 3,928,830 4,528,651
48. SEGMENT REPORTING Cement Power Inter segment

Other Total
Manufacturing Generation Elimination
48.1 Reportable segments ---------------------------------- (Rupees in thousand) ----------------------------------

For the year ended June 30, 2023
The Group has the following two strategic divisions, which are its reportable segments. These
Revenue
divisions offer different products and services and are managed separately because they Revenue from external customers 62,075,259 - - - 62,075,259
require different technology and strategies. Intersegment revenue - 6,064,205 - (6,064,205) -
The following summary describes the operations of each reportable segment. 62,075,259 6,064,205 - (6,064,205) 62,075,259
Cost of sales (45,651,503) (4,891,922) - 6,081,711 (44,461,714)

Reportable segments Operation
Distribution cost (2,001,499) - - - (2,001,499)
Administrative expenses (1,380,607) (16,100) (1,904) - (1,398,611)
Cement manufacturing The Maple Leaf Cement Factory Limited (the “Holding Company”) Other charges (1,186,881) (99,407) - - (1,286,288)
is operating as a cement manufacturing segment of the Group. The
principal activity of the Holding Company is production and sale of Other income
cement. Other income from external customer 146,646 371 303 - 147,320
Intersegment other income - 395,152 - (395,152) -
Power generation Maple Leaf Power Limited (the “Subsidiary Company”) is operating 146,646 395,523 303 (395,152) 147,320
as a electric power generation segment of the Group. The principal
activity of the Subsidiary Company is to develop, design, operate Finance cost (2,750,747) (836) - 370,756 (2,380,827)
and maintain electric power generation plant and in connection
Segment profit before tax 9,250,668 1,451,463 (1,601) (6,890) 10,693,640
therewith to engage in the business of generation, sale and supply of
electricity. The Subsidiary Company entered into a power purchase Taxation (4,759,002) (163,876) - - (4,922,878)
and steam purchase agreements with the Holding Company on July
04, 2017 and October 31, 2019 respectively which are valid for 20 Segment profit after tax 4,491,666 1,287,587 (1,601) (6,890) 5,770,762
years. Accordingly the Subsidiary Company sold 100% electricity
and steam to the Holding Company during the year. Reconciliation:
Segment profit after tax 5,770,762
Other consolidation adjustment -
The management reviews internal management reports of each division.
Consolidated profit after tax 5,770,762
346 347
Cement Power Inter segment 48.4 Segment assets and liabilities
Other Total
---------------------------------- (Rupees in thousand) ----------------------------------
Reportable segment’s assets and liabilities are reconciled to total assets and liabilities as
For the year ended June 30, 2022 follows:
Revenue Cement Power Inter segment

Other Total
Revenue from external customers 48,519,622 - - - 48,519,622 Manufacturing Generation Elimination
Intersegment revenue - 5,252,091 - (5,252,091) - ---------------------------------- (Rupees in thousand) ----------------------------------
48,519,622 5,252,091 - (5,252,091) 48,519,622
Segment assets
Cost of sales (36,244,156) (4,324,351) - 5,288,224 (35,280,283) Current assets 22,214,369 2,579,211 10,304 (2,048,150) 22,755,734
Distribution cost (1,483,876) - - - (1,483,876) Non-current assets 67,468,044 6,391,497 - (7,030,000) 66,829,541
Administrative expenses (971,452) (6,020) - - (977,472)
Other charges (952,200) (88,316) - - (1,040,516) Segment liabilities
Current liabilities 16,189,718 844,372 1,905 (1,987,706) 15,048,289
Other income Non-current liabilities 28,579,576 38,270 - (2,000,000) 26,617,846
Other income from external customer 55,017 1,207 - - 56,224
Intersegment other income 1,584 131,941 - (129,540) 3,985 For the year ended June 30, 2022
56,601 133,148 - (129,540) 60,209 Segment assets
Current assets 20,321,989 795,701 - (218,432) 20,899,258
Finance cost (1,741,026) (21,416) - 104,170 (1,658,272) Non-current assets 61,892,221 6,695,357 - (7,020,000) 61,567,578
Segment profit before tax 7,183,513 945,136 - 10,763 8,139,412 Segment liabilities
Current liabilities 16,193,390 658,730 - (164,880) 16,687,240
Taxation (3,557,172) (29,115) - - (3,586,287) Non-current liabilities 25,461,804 31,244 - (2,000,000) 23,493,048
Segment profit after tax 3,626,341 916,021 - 10,763 4,553,125
48.5.1 For the purposes of monitoring segment performance and allocating resources
Reconciliation: between segments:
Segment profit after tax 4,553,125
Other consolidation adjustment - All assets and liabilities are allocated to reportable segments; and there are no assets and
liabilities separately managed by Group.
Consolidated profit after tax 4,553,125
48.5 Other segment information
48.2.1 The revenue reported above represents revenue generated from each segment and inter Cement Power Inter segment
Other Total
segment revenue eliminated. Manufacturing Generation Elimination
---------------------------------- (Rupees in thousand) ----------------------------------
48.2.2 Revenue from major products and services For the year ended June 30, 2023
The analysis of the Group’s revenue from external customers for major products and services Capital expenditure 9,071,126 8,968 - - 9,080,094
is given in note 27 to these consolidated financial statements. Depreciation 3,471,880 307,998 - - 3,779,878
Amortization 3,469 - - - 3,469
48.3 The accounting policies of the reportable segments are the same as the Group’s accounting
policies described in note 3 to these consolidated financial statements. Finance cost 2,750,747 836 - (370,756) 2,380,827
Non-cash items other than depreciation,
amortization and finance cost 429,007 270,617 - - 699,624
Cement Power Inter segment

Other Total
------------------------------------ (Rupees in thousand) ------------------------------------
Capital expenditure 15,790,494 84,838 - - 15,875,332
Depreciation 3,231,589 324,170 - - 3,555,759
Amortization 2,388 - - - 2,388
Finance cost 1,741,026 21,416 - (104,170) 1,658,272
Non-cash items other than depreciation,
amortization and finance cost 750,660 (34,238) - - 716,422
348 349
48.6 Geographical information 49.1.1 Exposure to credit risk
The Group operates in two principal geographical areas, Asia and Africa other than Pakistan The carrying amount of financial assets represents the maximum credit exposure. The
and revenue from continuing operations from external customers based on geographical areas maximum exposure to credit risk as at the end of the reporting period was as follows:
is as follows:
2023 2022
Percentage 2023 2022
Geographical area (Rupees in thousand)
Asia 99.91% 99.96% Financial asset at amortized cost

Africa 0.09% 0.04%
Long term deposits 58,401 57,600
100.00% 100.00% Trade debts 2,600,988 2,066,212
Long term loans to employees 29,008 30,234
Short term loan / advance to employees 35,242 28,740
48.6.1 All assets of the Group as at June 30, 2023 are located in Pakistan. Short term investment 273,500 169,500
Margin and short term deposits 480,080 540,377
49. FINANCIAL RISK MANAGEMENT Accrued profit 9,118 7,206
Other receivables 21,905 52,261
The Group has exposure to the following risks arising from financial instruments: Cash at Bank 744,693 812,673
- credit risk 4,252,935 3,764,803

- liquidity risk
- market risk 49.1.2 Concentration of credit risk
Risk management framework The Group identifies concentrations of credit risk by reference to type of counter party.
Maximum exposure to credit risk by type of counterparty is as follows:
The Group’s Board of Directors (“the Board”) has overall responsibility for establishment and oversight
of the Group’s risk management framework. The Board is responsible for developing and monitoring
the Group’s risk management policies. 2023 2022
The Group’s risk management policies are established to identify and analyse the risks faced by the
Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk Customers 2,600,988 2,066,212
management policies and systems are reviewed regularly to reflect changes in market conditions and Banking companies and financial institutions 1,498,273 1,522,550
the Group’s activities. The Group, through its training and management standards and procedures, Others 153,674 176,041
aims to develop a disciplined and constructive control environment in which all employees understand
their roles and obligations. The Board of Directors reviews and agrees upon the policies for managing 4,252,935 3,764,803
each of these risks.
49.1.3 Credit quality and impairment
The Group’s audit committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework Credit quality of financial assets is assessed by reference to external credit ratings, where
in relation to the risks faced by the Group. Audit committee is assisted in its oversight role by internal available, or to historical information about counterparty default rates. All counterparties, with
audit department. Internal audit department undertakes both regular and ad hoc reviews of risk the exception of customers, have external credit ratings determined by various credit rating
management controls and procedures, the results of which are reported to the audit committee. agencies. Credit quality of customers is assessed by reference to historical defaults rates and
percentages.
The Group’s exposure to financial risks, the way these risks affect the financial position and
performance, and forecast transactions of the Group and the manner in which such risks are managed
is as follows:
49.1 Credit risk and concentration of credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. To manage credit risk the Group 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.
350 351
49.1.3(a) Counterparties with external credit ratings 49.1.3(b) Counterparties without external credit ratings
These include banking companies and financial institutions, which are counterparties to bank These mainly include customers which are counter parties to local and foreign trade debts
balances, margin against bank guarantees, margin against letter of credit and accrued return against sale of cement. As explained in note 3.10, the Group applies the IFRS 9 simplified
on deposits. Credit risk is considered minimal as these counterparties have reasonably high approach to measure expected credit losses which uses a lifetime expected loss allowance for
credit ratings as determined by various credit rating agencies. Due to long standing business all trade receivables. Trade receivables are written off when there is no reasonable expectation of
relationships with these counterparties and considering their strong financial standing, recovery. On adoption of IFRS 9, management uses an allowance matrix to base the calculation
management does not expect non-performance by these counterparties on their obligations to of ECL of trade receivables from individual customers, which comprise a very large number of
the Group. Following are the credit ratings of counterparties with external credit ratings: small balances. Loss rates are calculated using a ‘role rate’ method based on the probability
of receivable progressing through successive stages of delinquency to write-off. The Group
Banks Rating 2023 2022 has used three years quarterly data in the calculation of historical loss rates along with the
Short term Long term Agency (Rupees in thousand) matching quarterly ageing brackets for the computation of roll rates. These rates are multiplied
Bank balances
by scalar factors to reflect the effect of forward looking macro economic factors. The analysis of
Allied Bank Limited A1+ AAA PACRA 35,931 5,256 ages of trade debts and loss allowance using the aforementioned approach as at June 30, 2023
Askari Bank Limited A1+ AA+ PACRA 33,356 17,008 was determined as follows:
Bank Al-Habib Limited A1+ AA+ PACRA 69,523 145,032
Bank Alfalah Limited A1+ AA+ VIS- PACRA 3,618 6,928 2023 2022
Bank Islami Pakistan Limited A1+ A PACRA 13,643 13,492 Gross Loss Gross Loss
The Bank of Punjab A1+ AA+ PACRA 4,388 15,228 carrying amount Allowance carrying amount Allowance
AL Baraka Bank Limited A1 A+ PACRA 9 9
Dubai Islamic Bank Pakistan Limited A1+ AA JCR-VIS 2,580 2,580 ---------------------- (Rupees in thousand) ----------------------
Finca Microfinance Bank Limited A1 A PACRA - VIS 3,148 5,082 The ageing of trade debts at the reporting date is:
Habib Bank Limited A1+ AAA PACRA 105,806 195,064
Habib Metropolitan Bank Limited A1+ AA+ PACRA 20,808 31,780 Not past due 1,170,261 9,404 1,342,565 4,687
MCB Bank Limited A1+ A1+ PACRA 371,425 305,324
MCB Islamic Bank Limited A1 A PACRA 1,284 7,104 Past due:
National Bank of Pakistan A1+ AAA PACRA - VIS 7,168 15,609 1- 90 days 1,269,257 14,021 568,615 1,985
Samba Bank Limited A1+ AAA JCR-VIS 1,525 1,485 91 - 180 days 153,260 22,401 83,753 3,616
Silk Bank Limited A-2 A- JCR-VIS 14 13
Soneri Bank Limited A1+ AA- PACRA 104 102 181 - 270 days 36,071 10,006 72,081 7,156
Standard Chartered 271 - 365 days 41,690 13,719 16,419 2,816
Bank (Pakistan) Limited A1+ AAA PACRA 2,853 2,820
Summit Bank Limited A3 BBB- JCR-VIS 25 25
366 - above days 160,498 160,498 32,828 29,789
United Bank Limited A1+ AAA JCR-VIS 65,324 38,045
743,693 812,673 2,831,037 230,049 2,116,261 50,049
Short term investment - Term deposit receipts
The Bank of Punjab A1+ AA+ PACRA 264,500 169,500 Customer credit risk is managed by each business unit subject to the Group’s established
policy, procedures and controls relating to customer credit risk management. Credit limits are
Accrued profit established for all customers based on internal rating criteria. Credit quality of the customer is
The Bank of Punjab A1+ AA+ PACRA 8,792 7,075
assessed based on an extensive credit rating. Outstanding customer receivables are regularly
National Bank of Pakistan A1+ AAA PACRA - VIS - 131
monitored and shipments to the export customers are generally covered by letters of credit or
8.792 7,206
other form of credit insurance.
Margin against bank guarantees
Allied Bank Limited A1+ AAA PACRA 14,000 1,700 49.2 Liquidity risk
Askari Bank Limited A1+ AA+ PACRA 275,000 275,000
United Bank Limited A1+ AAA JCR-VIS 31,214 31,214 Liquidity risk is the risk that an entity will encounter difficulty in meeting the obligations
Summit Bank Limited A3 BBB- JCR-VIS 44,788 32,135 associated with its financial liabilities that are settled by delivering cash or another financial
Soneri Bank Limited A1+ AA- PACRA 5,000 5,000 assets, or that such obligations will have to be settled in a manner unfavourable to the Group.
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 1,964 1,964 Management closely monitors the Group’s liquidity and cash flow position. This includes
Habib Metropolitan Bank Limited A1+ AA+ PACRA 39,942 39,942 maintenance of liquidity ratios, debtors and creditors concentration both in terms of the overall
Dubai Islamic Bank Pakistan Limited A1+ AA JCR-VIS 50,000 50,000
funding mix and avoidance of undue reliance on large individual customers.
461,908 436,955
Margin against letters of credit Ultimate responsibility for liquidity risk management rests with the Board of Directors, which
Faysal Bank Limited A1+ AA PACRA - VIS 8,321 5,120 has built an appropriate liquidity risk management framework for the management of the
The Bank of Punjab A1+ AA+ PACRA 8,008 -
Group’s short, medium and long-term funding and liquidity management requirements. The
Habib Bank Limited A1+ AAA PACRA - 62,734
Habib Metropolitan Bank Limited A1+ AA+ PACRA 1,749 1,462 Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and actual cash flows and matching
18,078 69,316 the maturity profiles of financial assets and liabilities. Included in notes 8 and 18 to these
Total 1,496,971 1,495,650 consolidated financial statements is a listing of additional undrawn facilities that the Group has
at its disposal to further reduce liquidity risk.
352 353
49.2.1 Exposure to liquidity risk 49.3.1(a) Exposure to currency risk
Contractual maturities of financial liabilities, including estimated interest payments 2023

The following are the remaining contractual maturities at the reporting date. The amounts are ---------------------------------- in thousand ----------------------------------
grossed and undiscounted, and include estimated interest payments and exclude the impact
Assets
of netting agreements. - Trade debts 25,313 - - - - 129
- Cash and bank balances 32,439 2 - - - 111
2023
57,752 2 - - - 240
Carrying Contractual Less than Between Above Liabilities
amount cash flows 1 year 1 to 5 years 5 years - Trade creditors and bills payable (843,721) - - - (2,939)
---------------------- (Rupees in thousand) --------------------- (843,721) - - - - (2,939)

Non-derivative financial liabilities Net Statement of financial position exposure (785,969) 2 - - - (2,699)
Long term loans from banking
companies - secured 18,618,431 28,397,322 5,974,273 19,881,580 2,541,468 Off statement of financial position items
Long term deposits 8,214 8,214 - 8,214 - - Outstanding letters of credit (13,903,404) - - (39,475) (1,050) (922)
Retention money payable 1,752,988 1,752,988 - 1,752,988 -
Net exposure (14,689,373) 2 - (39,475) (1,050) (3,621)
Trade and other payables 7,159,133 7,159,133 7,159,133 - -
Mark-up accrued on borrowings 764,955 764,955 764,955 - - 2022
28,331,099 38,109,990 13,925,739 21,642,783 2,541,468
------------------------------ in thousand ------------------------------
Assets
2022 - Trade debts 26,995 - - - - 129
Carrying Contractual Less than Between Above - Cash at bank 17,388 2 - - - 82
amount cash flows 1 year 1 to 5 years 5 years
44,383 2 - - - 211
Liabilities
--------------------- (Rupees in thousand) ---------------------- - Trade creditors and bills payable (69,371) (22) (471) (47) (210)
Non-derivative financial liabilities
(69,371) - (22) (471) (47) (210)
Long term loans from banking
companies - secured 20,339,002 29,694,914 5,279,292 19,257,595 5,158,027 Net Statement of financial position exposure (24,988) 2 (22) (471) (47) 1
Long term deposits 8,214 8,214 - 8,214 - Off statement of financial position items
Trade and other payables 6,115,035 6,115,035 6,115,035 - - - Outstanding letters of credit (3,922,077) - (170) (109,402) (864) (1,708)
Mark-up accrued Net exposure (3,947,065) 2 (192) (109,873) (911) (1,707)
on borrowings 665,122 665,122 665,122 - -
Short term borrowings 3,572,073 3,572,073 3,572,073 - -
49.3.1(b) Exchange rates applied during the year
30,727,015 40,082,927 15,659,091 19,265,809 5,158,027
The following significant exchange rates have been applied:
49.3 Market risk
Average rate for the year Reporting date spot rate
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest 2023 2022
rates and equity prices will affect the Group’s income or the value of its holdings of financial 2023 2022
Buying Selling Buying Selling
instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing return. GBP 304.25 236.36 364.77 365.40 249.31 249.92
CHF 271.22 190.84 320.34 320.90 215.43 215.96
49.3.1 Currency risk EURO 267.16 200.16 313.72 314.27 215.23 215.75
USD 253.08 178.01 286.60 287.10 205.5 206
The Group is exposed to currency risk to the extent that there is a mismatch between the YEN 1.84 1.52 2.00 2.00 1.50 1.51
currencies in which advances, sales and purchases and bank balances are denominated and AED 69.39 48.46 78.59 78.72 56.35 56.48
the respective functional currency of the Group. The functional currency of the Group is Pak RMB 36.38 27.57 39.91 39.98 30.85 30.93
Rupee. The currencies in which these transactions are primarily denominated are Euros and SGD 186.09 130.87 212.36 212.73 147.69 148.05
US dollars.
354 355
49.3.1(c) Sensitivity analysis 49.3.2(b) Variable rate financial instruments
A reasonably possible strengthening / (weakening) of 10% in Pak Rupee against the following 2023 2022
currencies would have affected the measurement of financial instruments denominated in Financial Financial Financial Financial
foreign currency and affected statement of profit or loss by the amounts shown below at the Note assets liabilities assets liabilities
statement of financial position date . The analysis assumes that all other variables, in particular
interest rates, remain constant and ignores any impact of forecast sales and purchases.
Profit Long term loans from financial
2023 2022 institutions-secured 8 - 18,618,431 - 20,339,002
(Rupees in thousand) Short term borrowings -
Running Finance 18 - - - 3,571,568
USD (103,967) (35,164) Bank balances at at deposit accounts 34 376,711 - 309,033 -
EURO (32,998) (19,655)
RMB (157,823) (339,837) 376,711 18,618,431 309,033 23,910,570
GBP 67 50
AED - (124) The related mark-up / interest rates for fixed rate financial instruments are indicated in the
related notes to the consolidated financial statements.
(294,721) (394,730)
Cash flow sensitivity analysis for variable rate instruments
49.3.1(d) Currency risk management
A reasonably possible change of 100 basis points in interest rates at the reporting date would
Since the amount exposed to currency risk is very insignificant as compared to total assets or have (decreased) / increased profit by amounts shown below. The analysis assumes that all
total liabilities of the Group therefore any adverse / favourable movement in functional currency other variables, in particular foreign exchange rates, remain constant. This analysis is performed
with respect to US dollar , GBP and Euro will not have any material impact on the Group’s on the same basis for the year 2023.
operational results. Profit
2023 2022
49.3.2 Interest rate risk (Rupees in thousand)
Increase of 100 basis points
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 Variable rate instruments (182,417) (256,015)
mismatch of financial assets and financial liabilities that mature or re-price in a given period.
Decrease of 100 basis points
49.3.2(a) Fixed rate financial instruments
Variable rate instruments 182,417 256,015
The effective interest / mark-up rates for interest / mark-up bearing financial instruments are
mentioned in relevant notes to the financial statements. The Group’s interest / mark-up bearing The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year
financial instruments as at the reporting date are as follows: and the outstanding liabilities of the Group at the year end.
2023 2022 49.3.2(c) Interest rate risk management

Financial Financial Financial Financial
assets liabilities assets liabilities The Group manages these mismatches through risk management strategies where significant
changes in gap position can be adjusted. The short term borrowing and loans and advances by
the Group has variable rate pricing that is mostly dependent on Karachi Inter Bank Offer Rate
(“KIBOR”) as indicated in respective notes.
Short term investment - term
49.3.3 Price risk
deposit receipt 264,500 - 169,500 -
Price risk represents the risk that the fair value or future cash flows of financial instrument will
264,500 - 169,500 -
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
The related mark-up / interest rates for fixed rate financial instruments are indicated in the
instrument or its issuer, or factors affecting all similar financial instruments trading in market.
related notes to the consolidated financial statements.
Fair value sensitivity analysis for fixed rate instruments
The Group 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.
356 357
49.3.3(a) Investments exposed to price risk Carrying Amount Fair Value
Fair Value Financial
At the balance sheet date, the Group’s investment in quoted equity securities and investments statement at financial
in money market mutual funds is as follows: of profit amortised liabilities Total Level 1 Level 2 Level 3
or loss cost
2023 2022
Note - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees in thousand) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(Rupees in thousand) June 30, 2023
Financial assets at fair value

Investment in equity securities 3,425,056 28,846
Short term investments 3,425,056 - - 3,425,056 3,425,056 - -
49.3.3(b) Sensitivity analysis Financial assets at amortised cost

A 10.00% increase / (decrease) share prices at year end would have increased / (decreased) Long term loans to employees
Short term investment - term deposit receipt
-
-
29,008
273,500
-
-
29,008
273,500
-
-
-
-
-
-
the Group’s fair value gain on investment as follows: Margin and short term deposits - 480,080 - 480,080 - - -
Equity Accrued profit - 9,118 - 9,118 - - -
2023 2022 Long term deposits
Trade debts
-
-
58,401
2,600,988
-
-
58,401
2,600,988
-
-
-
-
-
-
50.1 3,425,056 4,223,252 - 7,648,308 3,425,056 - -
Short term investment at fair value
through profit and loss account Financial liabilities measured at fair value - - - - - - -

Effect of increase 342,506 2,885
Effect of decrease (342,506) (2,885) Long term loans from financial institutions - secured
Long term deposits
-
-
-
-
18,618,431
8,214
18,618,431
8,214
-
-
-
-
-
-
Retention money payable - - 1,752,988 1,752,988 - - -
49.3.3(c) Price risk management Unclaimed dividend - - 27,378 27,378 - - -
The Group manages price risk by monitoring exposure in quoted equity securities and 50.1 - - 24,677,337 24,677,337 - - -
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 Carrying Amount Fair Value
as at reporting date. Market prices are subject to fluctuation and consequently the amount Fair Value Financial
realized in the subsequent sale of an investment may significantly differ from reported market through assets Other
statement at financial
value. Fluctuations in the market price of a security may result from perceived changes in the of profit amortised liabilities Total Level 1 Level 2 Level 3
or loss cost
underlying economic characteristics of the investee, the relative price of alternative investments
Note - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees in thousand) - - - - - - - - - - - - - - - - - - - - - - - - - - -
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. June 30, 2022
Financial assets measured at fair value

50. FAIR VALUES
Short term investments 28,846 - - 28,846 28,846 - -
28,846 - - 28,846 28,846 - -

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Financial assets at amortised cost

Underlying the definition of fair value is the presumption that the Group is a going concern without any Long term loans to employees - 30,234 - 30,234 - - -
intention or requirement to curtail materially the scale of its operations or to undertake a transaction Short term investment - term deposit receipt - 169,500 - 169,500 - - -
Short term loan / advance to employees - 28,740 - 28,740 - - -
on adverse terms. Margin and short term deposits - 525,377 - 525,377 - - -
Accrued profit - 7,075 - 7,075 - - -
The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are Long term deposits - 57,600 - 57,600 - - -
based on the quoted market prices at the close of trading on the period end date. The quoted market Trade debts - 2,066,212 - 2,066,212 - - -
prices used for financial assets held by the Group is current bid price. 50.1 - 3,730,575 - 3,730,575 - - -
IFRS 13, ‘Fair Value Measurements’ requires the Company to classify fair value measurements using
Financial liabilities measured at fair value - - - - - - -
a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
The fair value hierarchy has the following levels:
Long term loans from banking companies - secured - - 20,339,002 20,339,002 - - -
- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can Long term deposits - - 8,214 8,214 - - -
access at the measurement date (level 1). Unclaimed dividend - - 27,569 27,569 - - -
- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, Short term borrowings - - 3,572,073 3,572,073 - - -
either directly or indirectly (level 2).
50.1 - - 30,727,015 30,727,015 - - -
- Unobservable inputs for the asset or liability (level 3).
The following table shows the carrying amounts and fair values of financial assets and financial
liabilities including their levels in the fair value hierarchy:
358 359
50.1 The Group has not disclosed the fair values of these financial assets and liabilities as these 2022
are for short term or reprice over short term. Therefore, their carrying amounts are reasonable Own Payable Long term
shares Unclaimed Liabilities against financing Short
approximation of fair value. purchased dividend against right redemption of from term Accrued Total
for of use assets preference financial borrowings markup
cancellation shares institutions
50.2 Freehold land, buildings on freehold land, roads, bridges and railway sidings, plant and
machinery have been carried at revalued amounts determined by professional valuers (level As at July 01, 2021 - 28,134 - - 13,341,361 1,894,115 260,953 15,524,563
3 measurement) based on their assessment of the market values as disclosed in note 7.1.
The valuations are conducted by the valuation experts appointed by the Group. The valuation
experts used a market based approach to arrive at the fair value of the Group’s properties. For Dividend paid - (565) - - - - - (565)
Payment of short term borrowings - net - - - - - 490,990 (1,225,521) (734,531)
revaluation of freehold land fair market value was assessed through inquiries to real estate Lease rentals paid during the year - - (12,425) - - - - (12,425)
agents and property dealers in near vicinity of freehold land. Different valuation methods and Own share purchased for cancellation (477,778) - - - - - - (477,778)
financial institutions - secured - net - - - - 6,898,075 - - 6,898,075
exercises were adopted according to experience, location and other usage of freehold land.
Total changes from financing cash flows (477,778) (565) (12,425) - 6,898,075 490,990 (1,225,521) 5,672,776
Valuer had also considered all relevant factors as well. In case of buildings on freehold land,
roads, bridges and railway sidings, construction specifications were noted for each building Other changes
and structure and new construction rates are applied according to construction specifications Deferred grant - - - - (871,768) - - (871,768)
for current replacement values. After determining current replacement values, depreciation Change in running finances and over draft balances - - - - - 1,156,968 - 1,156,968
Payable against purchase of own shares (18,651) - - - - - - (18,651)
was calculated to determine the current assessed market value. For revaluation of plant and Recognized during the year - - 44,021 - - - - 44,021
machinery, suppliers and different cement plant consultants in Pakistan and abroad were Finance Cost - - 2,377 - - - 1,618,196 1,620,573
contacted to collect information regarding current prices of comparable cement plant to Total liability related other changes (18,651) - 46,398 - (871,768) 1,156,968 1,618,196 1,931,143
determine current replacement value. Fair depreciation factor for each item is applied according As at June 30, 2022 (496,429) 27,569 33,973 - 19,367,668 3,572,073 632,836 23,137,690
to their physical condition, usage and maintenance. The effect of changes in the unobservable
inputs used in the valuations cannot be determined with certainty, accordingly a qualitative
52. CAPITAL MANAGEMENT
disclosure of sensitivity has not been presented in these financial statements.
The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and market
51. RECONCILIATION OF MOVEMENT OF LIABILITIES TO CASH FLOWS ARISING FROM
confidence and to sustain the future development of its business. The Board of Directors monitors the
FINANCING ACTIVITIES
return on capital employed, which the Group defines as operating income divided by total capital
2023
employed. The Board of Directors also monitors the level of dividends to ordinary shareholders.
Payable Long term
Own shares Unclaimed Liabilities against financing Short
purchased dividend against right redemption of from term Accrued Total The Group's objectives when managing capital are:
for of use assets preference financial borrowings markup
cancellation shares institutions
-------------------------------------------------------------- (Rupees in thousand) --------------------------------------------------------------- i. to safeguard the entity's ability to continue as a going concern, so that it can continue to provide
As at July 01, 2022 - 27,569 6,060,550 1,010 20,339,002 3,572,073 632,836 30,633,040 returns for shareholders and benefits for other stakeholders; and
ii. to provide an adequate return to shareholders.
Dividend paid - (191) - - - - - (191)
Proceeds from short term borrowings - net - - - - - (2,174,578) - (2,174,578)
Financial charges paid - - - - - - (2,240,664) (2,240,664) The Group manages the capital structure in the context of economic conditions and the risk
Lease rentals paid during the year - - (14,611) - - - - (14,611) characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group
Redemption of preference shares - - - (5) - - - (5)
Own share purchased for cancellation (194,661) - - - - - - (194,661) may, for example, adjust the amount of dividends paid to shareholders, issue new shares, or sell assets
Repayments of long term loans
from financial institutions - secured - net - - - - (1,720,571) - - (1,720,571)
to reduce debt.
Total changes from financing cash flows (194,661) (191) (14,611) (5) (1,720,571) (2,174,578) (2,240,664) (6,345,281)
2023 2022
Other changes
Deferred grant - - - - (183,510) - - (183,510) Total debt 19,383,385 24,577,884

Change in running finances and over draft balances - - - - - (1,396,990) - (1,396,990)
Finance cost - - - - - - 2,377,821 2,377,821
Less: Cash and bank balances (750,252) (817,244)
Total liability related other changes - - - - (183,510) (1,396,990) 2,377,821 797,321
Net debt 18,633,133 23,760,640
As at June 30, 2023 (194,661) 27,378 6,045,939 1,005 18,434,921 505 769,993 25,085,080
Total Equity 47,919,141 42,286,548
Total capital employed 66,552,275 66,047,188
Gearing 28.00% 35.98%
Total debt comprises of long term loans from banking companies, accrued markup on borrowings
and short term borrowings.
360 361
Total equity includes issued, subscribed and paid-up share capital, capital reserves, accumulated 55. CORRESPONDING FIGURES
profits and surplus on revaluation of fixed assets.
Corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison.
There were no changes in the Company's approach to capital management during the year. However, no significant reclassifications have been made.
53. PROVIDENT FUND TRUST 56. SUBSEQUENT EVENTS
The following information is based on the latest un-audited financial statements of the Provident Fund There are no subsequent events after the reporting date other than those mentioned in these
Trust: consolidated financial statements.
Un-audited Audited 56.1 The Board of Directors, in their meeting held on September 06, 2023 recommended the
2023 2022 shareholders towards purchase / buy-back upto a maximum of 100 million issued ordinary
(Rupees in thousand) shares of face value Rs. 10/- each at the spot / current share price under section 88 of the
Companies Act 2017 read with the Listed Companies (Buy-Back of Shares) Regulations, 2019.
Size of the fund - total assets 1,114,648 1,114,648 The reduced capital is expected to consolidate equity which will improve earnings per share,
future dividends and break-up value of the Company’s share subsequent to the purchase of
Cost of investments made 1,001,823 1,009,704 shares.
Percentage of investments made 96.42% 97.13% 57. DATE OF AUTHORIZATION FOR ISSUE
Fair value of investments 1,074,788 1,082,669 These consolidated financial statements were authorized for issue by the Board of Directors of the
Group in their meeting held on September 06, 2023.
The break-up of fair value of investments is:
2023 (Un-audited) 2022 (Audited) financial statements are signed by two directors.
Rs. in ‘000 Percentage Rs. in ‘000 Percentage
Shares in quoted securities 3,564 0.33% 3,734 0.34%

Term deposit receipts 590,176 54.91% 648,057 59.86%
Government securities 322,274 29.98% 322,274 29.77%
Mutual funds 158,774 14.77% 108,604 10.03%
1,074,788 100.00% 1,082,669 100.00%
Investments out of Provident Fund Trust have been made in accordance with the provisions of section
218 of the Companies Act, 2017 and the rules formulated for this purpose.
54. NUMBER OF EMPLOYEES
The total and average number of employees of the Group during the year and as at June 30, 2023 and
2022 respectively are as follows:
2023 2022
Total number of employees as on June 30
- Factory 1,270 1,237
1,696 1,590
Average number of employees during the year

- Factory 1,244 1,211
1,630 1,559
362 363
MAPLE LEAF CEMENT FACTORY LIMITED
42-LAWRENCE ROAD, LAHORE
PROXY FORM
I/We______________________________________________________________________________________
of________________________________________________________________________________________________
being a member of MAPLE LEAF CEMENT FACTORY LIMITED hereby appoint _____________________________
_________________________________________________________________________________________________
Name (Folio / CDC A/c No., if Member)
of ______________________________________________________________________________________________
or failing him/her _________________________________________________________________________________

Name (Folio / CDC A/c No., if Member)
of _______________________________________________________________________________________________
as my/our proxy to attend, speak and vote for and on my/our behalf at the 63rd Annual General Meeting of the
Company to be held at its Registered Office, 42-Lawrence Road, Lahore, on Thursday, October 19, 2023 at
10:00 AM and/or any adjournment thereof.
As witness given under my/our hand(s) _________________ day of October 2023.
1. Witness: 2. Witness:
Affix
Signature : _____________________ Signature : _______________________ Revenue
Stamp of Rs. 50/-
Name : _____________________ Name : _______________________
CNIC : _____________________ CNIC : _______________________
Address : _____________________ Address : _______________________
: _____________________ : _______________________
____________________________
Signature of Member / Attorney
(Please also affix company stamp,
in case of corporate entity)
Notes:
Shares Held: ____________________________
1. Proxies, in order to be effective, must be
received at the Company’s Registered Office
not later than 48 hours before the time Folio No. CDC Account No.
for holding the meeting and must be duly Participant Account
stamped, signed and witnessed. I.D. No.
2. CDC beneficial owners and Proxy Holders

must bring with them their Computerized
National Identity Cards (CNIC)/Passports in CNIC No.
original to prove his/her identity and in case
of Proxy, CDC beneficial owners and Proxy
Holders must enclose an attested copy of
their CNIC/Passport with Proxy Form.
3. In case of corporate entity, the Board of

Directors’ resolution / power of attorney with
specimen signature of the nominee (unless it
has been provided earlier) should be attached
with the proxy form or may be provided at the
time of meeting.
364 365
AFFIX
CORRECT
POSTAGE
The Company Secretary

Tel: 042-36278904-05
366 367
AFFIX
CORRECT
POSTAGE
The Company Secretary

Tel: 042-36278904-05
368 369
370 371
372 373
374 375
376 377
378

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CONTENTS

02 About the Report 92 Brief Profile of Directors

Your feedback is of great value to the Company. Any queries, grievances

Regional Sales Office, Lahore

Regional Sales Office, Rawalpindi

Regional Sales Office, Peshawar

Regional Sales Office,

Regional Sales Office, Sahiwal

Regional Sales Office, Multan

Plant Regional office, Rahim Yar Khan

LEADING EDGE INNOVATIVE

CREATIVE THOUGHT PROCESS

2. Dealings with third parties which include Government officials, suppliers,

3. Directors and employees are not allowed to accept any favours or

4. Directors and employees are not permitted to divulge any confidential

5. All employees share a responsibility for the Company’s good public

Just for Trust.....!

Environmental • Attitude towards and • Company is successfully operating waste heat

Legal • Enforcement of new • Company has engaged an efficient team of

• Largest single cement producing site in Pakistan. • Cyclical industry.

• Focus on cost optimization. • Rising cost of logistics.

SHORT TERM OBJECTIVES

• Improved capacity utilization of the Company’s production facilities.

• Effective use of available resources.

MEDIUM TERM OBJECTIVES

• Modernization of production facilities and adoption of latest technologies in order to

• Compliance with further improvements in implementation of Code of Corporate

• Effective marketing and innovative concepts.

LONG TERM OBJECTIVES

• Implementation of effective human resource solutions through personnel development,

• Explore alternative energy resources.

• Compliance with local and international environmental and quality management

• Implementation of projects in social and economic development of communities.

FINANCIAL CAPITAL MANAGEMENT

Technology: It has a direct link to productivity, cost

PROVIDING SUSTAINABLE ADVANTAGE and modernization of equipment resulted in availing

Moreover, in order to enhance the culture and impart

Modernization of production facilities in order Reduction in unplanned stoppages.

SIGNIFICANT PLANS AND DECISIONS DURING THE YEAR

D. RISK MANAGEMENT METHODOLOGY

RISKS TYPE IMPLICATION

Corporate Objective Risk Assessment Mitigation Strategies WORKFORCE AND

Financial Risk: Likelihood: The Company is actively

E. RISK AND COUNTER MEASURES STRATEGY MATRIX

Corporate Objective Risk Assessment Mitigation Strategies

Legislative and Legal Strategic Risk: Likelihood: Management is proactively

Technology: Strategic Risk: Likelihood: Management is continuously

Operations: Operational Risk: Likelihood: To avoid such stoppages,

Key opportunity Impact area Strategy to materialize

G. Strategy for Supply Chain Risk Management.

Supply Chain Risk Risk Involved Mitigating Strategy

• Transportation: The out

ORDINARY BUSINESS: of similar nature to the extent of Rs. 500 million

Resolved further that Chief Executive Officer

STATEMENT UNDER SECTION

AGENDA ITEM NO. 3 OF THE NOTICE - INVESTMENT IN KOHINOOR TEXTILE MILLS

Net Profit 2,407,262 Penalty @ 3-months KIBOR plus one

(vii) Any other important details necessary

Mr. Waleed Tariq Saigol 0.0124 0.0011

(iv) Particulars of collateral or security to No collateral is considered necessary since