Attock Cement introduction and contributions into cement sector

Attock Cement is one of a mid-range manufacturers of cement with operations

established in 1981 and commercial production starting in 1988 with a capacity of
0.6 million tons once a year. Attock's cement is popularly known by its name
Falcon, which is supplied mainly to the southern parts of the country yet as abroad
through the ocean port. Attock cement Pakistan limited might be a cement
manufacturer and distributor. The company products portfolio includes
ordinary Portland cement, sulphate resistant cement, block cement and Portland
blast furnaces slag cement. It markets its product under the brand Falcon
cement.ACPL exports its products to the UAE, Iraq, Qatar, Somalia, Kuwait,
Republic of South Africa, Yemen, India, Siri Lanka, Tanzania, Somalia and Sudan.
The company operates through its factory located in Tehsil Hub, District Lasbela,
and Balochistan. It operates as a subsidiary of Pharaon investment Group limited
Holding .ACPL is headquarter in Karachi, Sindh, Pakistan. The company boasts a
production capacity of three million tons. Its market share within the south is
around 25 percent or more. The company was started with an initial capital outlay
of Rs1.5 billion and a remote exchange component of $45 million. The company is
currently running three manufacturing plants at its facilities. Attock also made
investments during a very cement grinding unit in Iraq through a venture with the
Iraq-based Al Geetan Commercial Agencies to form a subsidiary,
an indebtedness company. Attock's holds 60 percent of the company. The mill
encompasses a capacity of 0.9 million tons at a price of $24 million. ACPL may be
a component of the Pharaon group contains a spread of investments within the
areas of oil and gas, power generation and data technology. Apart from Attock
cement, the group also includes Pakistan Oilfields Limited (1950), Attock Refinery
(1922), Attock Petroleum Limited jointly established by the Pharaon Investment
Group Limited Holding (PIGL) and Attock Oil Group of Companies (1995).
Pharaon also took over National Refinery Limited (NRL) in 2005. Attock has
significant market share within the south and faces limited competition. It has
been operating at maximum capacity for kind of years now and its brand
recognition ensures it a solid space within the market. The company enjoys
proximity to the port which in periods when domestic demand declines can help in
shifting focuses towards exports. Its cost compared to many cement manufacturers
within the north is lower because it can get its imported material and fuels at lower
freight. The south zone enjoys higher cement retention prices because of regional
dynamics. Lower competition within the region allows cement manufacturers to
charge higher prices. During times of lower domestic demand, the
company was able to favor its sales mix toward exports. The company's margins
not only rely on off take and costs (which have moved upwards) but also the
worth of imports and so the exchange .rate. International coal prices can also hit
the company's margins after they moved upwards while a depreciating rupee
makes these imports expensive.

SUMMARY of great ACCOUNTING POLICIES

The principal accounting policies applied within the preparation of these financial
statements are began below:
Basis of preparation Statement of compliance
These financial statements are prepared in accordance with the accounting and
reporting standards as applicable in Pakistan. The accounting and reporting
standards applicable in Pakistan comprise of:

• International Financial Reporting Standards (IFRS) issued by the International

Accounting Standards Board (IASB) as notified under the companies Act, 2017;
and
• Provisions of and directives issued under the companies Act, 2017.
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 are followed
Changes in accounting standards, interpretations and pronouncements
(a) Standards, interpretations and amendments to published approved accounting
standards that became effective during the year and relevant
IFRS 9 ‘Financial instruments’ - This standard replaces the guidance in lAS 39. It
includes requirements on the classification and measurement of monetary assets
and liabilities; it also includes an expected credit losses model that replaces this
incurred loss impairment model.
IFRS 15 ‘Revenue from contracts with customers’ - IFRS 15 replaces the previous
revenue standards: lAS 18 Revenue, lAS 11 Construction Contracts, and also the
related interpretations on revenue recognition.
IFRS 15 introduces one five-step model for revenue recognition and establishes a
comprehensive framework for recognition of revenue from contracts with
customers supported a core principle that an entity should recognize revenue
representing the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services.
(b)Standards, interpretations and amendments to published approved accounting
standards that are effective but not relevant
The new standards, amendments and interpretations that are mandatory for
accounting periods beginning on or after July 1, 2018 are considered to not be
relevant for the Company’s unconsolidated financial statements and hence haven't
been detailed here.
(c)Standards, interpretations and amendments to published approved accounting
standards that are not yet effective but relevant
The following is that the new standard, amendment to existing approved
accounting standards and new interpretations which is able to be effective for the
periods beginning January 01, 2019 that may have a bearing on the unconsolidated
financial statements of the company.
IFRS 16 ‘Leases’ - IFRS 16 replaces the previous lease standard: IAS 17 Leases.
It’ll result in the bulk leases being recognized on the statement of economic
position, because the excellence between operating and finance leases is removed.
Under the new standard, an asset (the right to use the leased item) and a financial
liability to pay rentals are recognized. The only exceptions are short term and low
value leases.