Attock Cement

Account receivable management

An entity has a number of claims to the future inflows of cash. These claims are usually
classified as Account receivables and notes receivable on the financial statement. The
primary claim that most entities have comes from selling of merchandise or service on
account to customers, referred as trade receivables with promising to pay within a limited
period of time such as 30 days.

As the Attock cement company

2008 2007

Trade debts considered good 49799 19897

Net sales 4991451 4560402

Calculation of the ratios is done below

Days Sales in A/R = gross receivables/ Net sales/365

2008 2007

49799 19897
4991451/365 4560402

=3.46 days =1.59 days

Credit terms of the company

Attock cement credit policy is strongly controlled as SEASONAL

A/R turnover = Net Sales/Average Gross A/R

2008 2007

4991451 4560402
49799 19897

= 100.2321 =229.2005

SEASONAL fluctuations
Inventory management

2008 2007

Stock in trade 409498 276428

Cost of Goods Sold 3887147 3005726

Days sales in inventory = ending inventory/COGS/365

2008 2007

409498 276428
3887147 3005726

= 38.45154 days = 33.568 days

Interpretations

Inventor turnover = COGS/ AVERAGE INVENTORY

2008 2007

3887147 3005726
409498 276428

= 9.492469 times = 10.87345 times

Interpretations
Capital structure

2008 2007

SHARE CAPITAL AND RESERVE

Authorized capital of 125,000,000 ordinary shares

Of Rs.10 each

Issued, subscribed and paid-up capital 721629 721629

unappropriated profit 2784754 2674462
Hedging reserves 25196 (47)

Total 3531579 3396044

NON-CURRENT LIABILITIES

Liabilities against assets subject to fiancé lease - 109

Long term murabaha 622500 822500
Deferred taxation 736449 554213
1358949 1376822

CURRENT LIABILITIES

Trade and other payables 767579 819785

Accrued markup 12731 14413
Current maturity of liabilities against assets
Subject to finance leases 109 1076

Cuurent maturity of long term murabaha 200000 177500

980419 1012774

Total 5870947 5785640

Capital structure

Attock Cement Company has capital structure of 60% equity and 40% debt

ATTOCK CEMENT

Equity
Debt
Capital budgeting

Inventory turnover rate:

The inventory turnover rate has remained the same. The inventory has increased
over the year. But the inventory turnover rate has remained same as of the previous year
due to the fact the cost of good sold has also been increased. This might be due to the
following facts
• The cost of raw material has increased

• Inflation

• High cost etc.

• Cost of labor has increased

Receivable turn over rate:

The receivable turn over rate has decreased significantly. This might be the fact
that receivables has increased significantly. The amount of receivables has almost tripled
as compared to last year. The increase in receivables shows that the company has
introduced or changed its policies. Following could be the reason for the increase in the
receivables.
Attock Cement Pakistan Ltd.
Introduction

Attock Cement Pakistan Limited (ACPL) is a public

limited company, listed on the Karachi Stock
Exchange since June 2002. Main business of the
Company is Manufacturing and Sales of Cement.
ACPL, is part of the Pharaon Group, which in
addition to investment in Cement industry has
diversified stakes in Pakistan mainly in the Oil and
Gas Sector.

Vision:

To be the leading organization, continuously providing high quality cement, excelling in

every aspects of it’s business and to remain the market leader in the cement industry.

Mission:

To be a premier and reputable cement manufacturing company dedicated to become

industry leader by producing quality products, providing excellent services, enhancing
customer satisfaction and maximizing shareholder’s value through professionalism and
dedicated team work.
Accounts Receivable Management

PROCEDURE

. Financial Documentation and Reporting

1. The Attock Board establishes a billing compliance program to insure that all
professional fee services rendered and billed comply with applicable laws,
regulations.

2. The Director of Attock Business Services (ABS) is responsible for

preparing a document that describes the processing and handling of charges. This
document is reviewed by the Compliance Officer to insure compliance with
existing rules, regulations, and laws governing the handling of professional fee
activity.

3. The Director of ABS establishes how the various types of contractual adjustments
and bad debts are handled and the signature authorizations for accounts written
off.

4. Charges that can neither be reimbursed nor charged to a patient will be written off
at the earliest possible time. Indigent adjustments will be made at the time status
is determined.

5. The Director of ABS establishes the procedural description for the handling of
credit balances that complies with applicable laws and regulations.

6. Attock Cement prepares quarterly financial reports and submits to Stock exchange
leadership who, in turn, forward them to System Administration in the format
developed and approved by the Office of the Controller.

7. ABS maintains billing and collection information that measures the effectiveness
and efficiency of its operations. This information is presented at the meetings of
the Attock Cement Budget and Finance Committee. This information includes,
but is not limited to the following ratios: billing and collection cost-to-net
charges; days in accounts receivable; timely submission of charges; percentage of
collections; missed deadline account write-offs; and operating and total margins.
Handling Advance Deposits

ABS maintains standard financial deposit guidelines for handling advance deposits for
those who are receiving services & product on an elective basis. The Director of ABS
coordinates the establishment of these cash deposit guidelines dependent upon each
individual specialty and/or specialized procedure to be performed.

Billing and Collecting

All billing and collection of Attock Cement for professional patient care activity will be
coordinated through MSRDP PBS. This will include the processing of charges for
technical fees related to patient care.

All Accounts staff connected with coding, billing, and collection activities of Attock
Cement must make a financial evaluation of customers through a centrally controlled and
administered financial screening section of the ABS

Attock Cement staff must determine the above identification as early as possible through
the registration process in order to properly categorize both the charges and payments
that are being received and applied to the customers account. In addition, the
identifications should identify the special billing indicators, which may be applicable to
the particular customers.

The ABS must adhere to established policies for the management of the outstanding
accounts receivable so that there will be a consistent and uniform handling of these
accounts.
Inventory Management

Attock Cement Inventory System for the real time management of inventory items in the
catalog. The Inventory System supports updating inventory information for all items,
monitoring inventory depletion, and importing and exporting inventory information to
and from external systems of record. The Inventory System serves the needs of
customers, supplier, retailers and business managers, site administrators, and external
line-of-business systems that interface with Commerce Server.

The Inventory System includes support for the following functions:

1. Flexible configuration that allows for backordering and display of out of stock
stock-keeping units Products.

2. Order checking and update through cements components.

3. Full text search and query integration with the Catalog System.

4. Transactional updates.

5. Import and export operations similar to the Catalog System.

6. Runtime delivery with methods for searching, browsing, viewing details,

inventory search options that include product filtering, assigning inventory
conditions, and roll-up values.

7. Integration with other Commerce Server systems, such as the Catalog System and
Orders System.
 Dedication

In the name of the man

Who does not need to read it.