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BESTWAY CEMENT LIMITED

CONTENTS

Company Information Directors’ Report Balance Sheet

1-2 3-4 5-6

Profit and Loss Account/ Statement of Comprehensive Income

7

Cash Flow Statement

8

Statement of Changes in Equity

9

Notes to the Financial Information

10-14

Consolidated Financial Information

17-27

Allied Bank Limited.pk Director Works MARKETING HEAD OFFICE House# 293-A. BANKERS Habib Bank Limited. Ghulam Sarwar Malik Mr. Habib Metropolitan Bank Limited. H. Mehmood Afzal Chairman REGISTERED / HEAD OFFICE Bestway Building.pk COMPANY SECRETARY Mr. Distt.pk 01 02 .com. O. LEGAL ADVISORS Raja M. National Bank of Pakistan. ACA STATUTORY AUDITORS KPMG Taseer Hadi & Co. HSBC Bank Middle East Limited. United Bank Limited. Mr. Fax: (92-51) 265 4865/265 4992 E-mail: management@bestway. NIB Bank Limited.com. AUDIT COMMITTEE Mr. Peshawar Road Rawalpindi Tel: (92-51) 551 3110. Soneri Bank Limited. Near PSO Petrol Pump 22 Km Kallar Kahar. Faysal Bank Limited. Ghulam Sarwar Malik Mr. Tel: (92-51) 265 4856 ~63 . Islamabad. Tel: (92-21) 452 6983 ~ 84. 10th Floor. Advocate Supreme Court. Khyber Pakhtunkhwa Pakistan.E. Standard Chartered Bank (Pakistan) Limited.pk PLANT SITE Hattar Suraj Gali Road. Fax: (92-21) 452 6985 COST AUDITORS BDO Ebrahim & Co. Chartered Accountants.Pk. MCB Bank Limited. Askari Bank Limited. 552 0962 Fax: (92-51) 551 3109 E-mail: gmmkt@bestway. Haripur. Barclays Bank PLC. F-7 Markaz. Mazhar Rafi Mr.com. 551 4492. Silkbank Limited. Pakistan. Hattar. Chartered Accountants SHARES DEPARTMENT Progressive Management Services (Pvt) Ltd. Choa Saiden Shah Road Chakwal. Fax: (92) 0303 711056 E-mail: gmworks1@bestway.com. A-115 S. Kaleem Ashraf.B. Mehdi Towers. 19-A. Mehmood Afzal Chairman Chief Executive Director Director Finance & CFO Director Administration & Marketing Director Projects. Meezan Bank Limited. Shahrah-e-Faisal. Pakistan Ph: 0543 584560 ~ 3 Email: gmworks3@bestway. Bank Alfalah Limited. Karachi.M. Zameer Mohammed Choudrey Mr. College Road. Sheikh Mr.S. The Bank of Punjab. Mazhar Rafi Mr. Bashir.BESTWAY CEMENT LIMITED COMPANY INFORMATION BESTWAY CEMENT LIMITED COMPANY INFORMATION BOARD OF DIRECTORS Sir Mohammed Anwar Pervez. Arshad Mehmood Chaudhary Mr. Procurement & Coordination Chakwal Village Tatral.C.H. Bank AI-Habib Limited. Muhammad Irfan A. Tel: (92) 0303 771 1057 ~ 58. Village Shadi.

089 million for the corresponding period of last year.956 695. 101 million during the quarter ended 30th September 2009. our bankers and various government agencies throughout the period. Significantly lower off take of cement and shutdown at Hattar plant for maintenance resulted in short fall in capacity utilisation.097. 612 million for the quarter ended 30th September 2010 as against Rs. The local despatches stood at just 4. It is a 03 For and on behalf of the Board Chief Executive 29 October 2010 Islamabad 04 . Other markets like Africa. high interest rates. taxes and royalty on raw materials. the industry witnessed significant contraction in despatches due to unprecedented flooding caused by heavy monsoon. Selling prices have however started firming up with further improvement likely in the coming months. This was primarily due to higher cost of financing and increased borrowings during the period. 4. Industry Overview During the quarter under review.439 Decrease Tonnes 191. customers. Operating Highlights The turnover net of sales tax. Waste Heat Recovery Power Plant CDM Registration We feel immense pleasure in informing our shareholders that our waste heat recovery project has been registered with UNFCCC under the Clean Development Mechanism.599 715.371 2009 Tonnes 834. The capacity utilisation of the Company during the three months under review stood at 58% as against 93% for the same period of last year.3 million tonnes as against 2. In the recent past the cement industry has had to contend with low selling prices due to fierce competition. 53 million for the same period of last year. increasing power tariffs and increase in duties. Loss before tax for the period under review amounted to Rs.563 million for the quarter as compared to Rs.088 3 439 Percentage Decrease 23% 35% 37% - matter of great pride that this is the first project in cement industry and only the ninth project in Pakistan to have been registered to date. regional markets like the UAE are likely to remain depressed for the foreseeable future. Acknowledgements The Directors wish to place on record their appreciation for the continued support.103.290 million as compared to profit of Rs.459 3.647 402.5 million tonnes while exports stood at 2. Bestway is already firmly established as the leading brands in Afghanistan and your Company will continue to expand its share in that market. This was primarily due to significantly lower off take of cement and increased production costs during the period. Future Outlook Unprecedented flooding caused by heavy monsoon during the 1st quarter of 2010-2011 adversely affected the demand for cement. 503 million for the corresponding quarter of last year which is an increase of 22%. India and Srilanka are likely to continue to generate some demand for our cement for few more years to come.199 387. contribution and confidence demonstrated in the Company by its shareholders. Your management is cognisant of the challenges that lie ahead and will continue to make all out efforts to ensure further growth and superior returns in the future.798 1. however the devastation caused by the floods is likely to generate additional demand for cement for the rehabilitation of infrastructure and housing. while other markets like Afghanistan continue to generate good demand for Pakistani cement. 186 million as compared to a profit of Rs.603 1. Loss after taxation stood at Rs.9 million tonnes in the same period of last year. On the export front. Production and Sales 2010 Tonnes Clinker production Cement production Cement sales Clinker sales 643. excise duty and rebates and discounts to customers stood at Rs.BESTWAY CEMENT LIMITED DIRECTORS' REPORT BESTWAY CEMENT LIMITED DIRECTORS' REPORT The Directors take pleasure in presenting the Company's un-audited accounts for the quarter ended 30th September 2010.2. suppliers. members of staff.6 million tonnes as against 5. Financial charges stood at Rs.

819 297.520.685.764.000.347.630.445 43.148.122.520.355 11.865.426.167.558.096.686.715.744 4.112.934.963.402.381 7.548 24.296.872 120.419.188.840 322.433.910 1.970 6.500.785.066.secured Deferred liabilities 5 4 9.358.939 36.444.963.847 Current portion of liabilities against assets subejct to finance lease Current portion of long term murabaha 5 28.474 3.556 1.257.926 340. 10 each 3.347.122.330 1.096.283.230.701. (0.776.168 4.000 (2010: 350.923 3.00478076934814453) CHIEF EXECUTIVE DIRECTOR & CFO 05 06 .776 340.475.847 16.178.500.010 135.881 12.445 50.579.000.834 6.210 Non-current liabilities Long term financing .144.006.450.633. plant and equipment Issued.834 6.330 Stores.000.030.981 278.677 1.264.896.132 785.000 9.000.155 3.427.720.893 154.142 823.910 146. spare parts and loose tools Stock in trade Trade debts.686.277.444.458 3.secured Liabilities against assets subject to finance lease Long term murabaha .490 30.820.000.998.452.791 120.243.000 386.170.252.037 395.462.114.432 28.277 23.498.885.966.934.396.182.000 Property.885.000 3.764.893 154.548 24.000.330 1.715.556 1.619.858.475.078 0.584.910 1.309.secured Current portion of long term financing 6 4 1.450.953 Investment property Long term investments Long term advances Long term deposits 8 16.BESTWAY CEMENT LIMITED CONDENSED INTERIM BALANCE SHEET AS AT 30 SEPTEMBER 2010 Unaudited 30 September 2010 Note Rupees Audited 30 June 2010 Rupees BESTWAY CEMENT LIMITED CONDENSED INTERIM BALANCE SHEET AS AT 30 SEPTEMBER 2010 Unaudited 30 September 2010 Note Rupees Audited 30 June 2010 Rupees Share capital and reserves Non-current assets Authorised share capital 350.498.432 - Contingencies and commitments 7 0.018.000 70.000.190.013.323.considered good Advances Deposits and prepayments Interest accrued Other receivables Due from Government agencies Cash and bank balances 2.182.005.309.122.386 187.063 1.835.419.480.599.695.889.358.111.000 9.625 32.257.745.146 62.708 5.258.804 Current liabilities Trade and other payables Markup payable Short term borrowings .000 70.000 273.569.078 28.000.334.018.006 23.00 28.143 16.713 7.000) ordinary shares of Rs.149 9.781.532. subscribed and paid up share capital Share premium account Unappropriated profit 3.218 892.072 2.00 The annexed notes from 1 to 11 form an integral part of this financial information.656 673.

Deferred 15.270.795 (10.893 6.152.662 Dividend Income Exchange loss/ (gain) 413.164.329 (Increase)/ decrease in current assets Stores.766.892.UBL Profit received on deposit accounts Net cash generated from/ (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES The annexed notes from 1 to 11 form an integral part of this financial information.317.474 5.969.238) (70.865.535. plant and equipment Depreciation (289.237.805 11.067.495 (3.385 612.524) 301.246 89.257 (11.914.905.245) (15.744) 214.144.354) 178.474 (13.329 Additions in fixed Assets Additions in long term investments .443.363) 155.184.070.087.111) 100.392) (636.642) 643.569 33.865 (1.893.879.552.281) (536.846.121 Finance cost paid (210.076) (68.485 2.751.890) Cash (used in)/ generated from operations (370.215.708 (536.605 (230.569.191.617.553 CHIEF EXECUTIVE DIRECTOR & CFO The annexed notes from 1 to 11 form an integral part of this financial information.744 145.301.563.600.067.989 1.059) (784.792 Staff retirement benefits paid Income tax paid Net cash (used in)/ generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Additions in capital work in progress (15.544) (103.664.383) (51.415 9.508.449 529.291.236.771 (674.535.571) 43.721.364.368) 20.691 2.750.327 (Loss)/ Profit before taxation (289.246.175 (118.734 (3.734.775.745) (87.327.857.624) (3.193.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Quarter ended 30 September 2010 Rupees 2009 Rupees BESTWAY CEMENT LIMITED CONDENSED INTERIM CASH FLOW STATEMENT .449 (40.696.783 29.704.234) 612.966) 647.057) (1.316) (46.491.518 703.703 Rental income from investment property Profit on deposit accounts Profit on held to maturity investment Finance cost Provision for staff retirement benefits Gross profit Administrative expenses Distribution cost Other operating expenses Finance cost Other income 354.765.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Quarter ended 30 September 2010 Rupees CASH FLOWS FROM OPERATING ACTIVITIES Net (loss)/ profit before taxation Adjustments for: Gain on disposal of property.088.067.895.796.622.670.966 130.805.518) 187.645 502.399.790.238 (8.680 1.650 748.527.433.743) 52.878.990.776.332.712.544.561. CHIEF EXECUTIVE DIRECTOR & CFO 07 08 .Current .594.196 72.750. Increase/ (decrease) in short term borrowings Net cash generated from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of the period Exchange (loss)/ gain Cash and cash equivalents at end of the period 529.043.545) (281.664.374.57) 0.069.522 98.562) (462.411 2.941 (195.663.987 (274.782) (3.916) 1.BESTWAY CEMENT LIMITED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT/ STATEMENT OF COMPREHENSIVE INCOME .744 (214. spare parts and loose tools Stock in trade Trade debts Advances Deposits and prepayments Accrued profit Other receivables Due from government agencies Increase/ (decrease) in current liabilities Trade and other payables (195.326 27.092.107 34.909.954) (113.385) (265.482) 433.636.649.828.121 2009 Rupees (292.518) 146.893.235.462) (187.401 (93.466 48.208.899.844 Taxation .net Decrease in stores held for capitalisation Additions in stores held for capitalization (Loss)/ Earnings per share (basic and diluted) (0.191) 162.864.16 Proceeds from sale of fixed assets Dividend received from associated company.057) (145.267 93.617.765.359.471.793) 25.674.138) Turnover .720.566 567.354.444) 620.780) (Loss)/ Profit after taxation (185.285) (2.322.244) 1.649.234 65.218) 452.095 (127.069.339.111) 100.703) 752.201) 502.440 (113.net Cost of sales 2.415 (100.720.281) (333.930) 460.841 4.922.861.965.847.

994.329 6.475.257.086.3 This condensed interim financial information does not include all of the information required for full annual financial statements.463 8.148.BESTWAY CEMENT LIMITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY .419.000 (3. Rupees Total Other comprehensive - - - - - - - #REF! Rupees income 2 BASIS OF PREPARATION Revenue reserve 2.329 Unappropriated profit 2.970 The annexed notes from 1 to 11 form an integral part of this financial information.713 Rupees 1.268.112.338 (3.527.864. 1984 and is listed on the Karachi Stock Exchange (Guaranteed) Limited since April 9. 2010.743) 52.secured Unaudited 30 September 2010 Rupees 13.953 (185.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 1 DIRECTOR & CFO (185.498.2 This condensed interim financial information is unaudited and is being submitted to the shareholders as required by Section 245 of the Companies Ordinance.445) 9.527.570.330 1.358. Comparative figures of the balance sheet are extracted from the audited annual financial statements for the year ended June 30. related judgments. subscribed and paid up share 3.105.864.105.910 3.559.332) 13.498. College Road F-7 Markaz. 1993 under the Companies Ordinance.329 52. Rupees capital Changes in equity for the quarter ended 30 September 2010 Changes in equity for the quarter ended 30 September 2009 Total comprehensive (expense)/ income for the period Balance at the beginning of period/ year Disbursements during the period/ year Repayments during the period/ year CHIEF EXECUTIVE Total comprehensive income for the period Balance as at 30 September 2009 Balance as at 30 September 2010 Profit after tax for the period Loss after tax for the period Balance as at 30 June 2010 Balance as at 01 July 2009 Balance at the end of period/ year Less: Current portion shown under current liabilities 09 10 .743) 8.686.419.050.599.283.329 52. 1984 and in accordance with the requirements of International Accounting Standard 34 "Interim Financial Reporting".1 This condensed interim financial information has been prepared in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.910 3.686.444.498.257. (185.893 Audited 30 June 2010 Rupees 14. 19-A.963.475.803.670 2.210 - LEGAL STATUS AND OPERATIONS Bestway Cement Limited ("the Company") is a public company incorporated in Pakistan on December 22. estimates and assumptions adopted for preparation of this condensed interim financial information are the same as those applied in preparation of the annual audited financial statements for the year ended June 30. and should be read in conjunction with the financial statements of the Company as at and for the year ended June 30. 2010 whereas comparative profit and loss account.444.792 7. 3.257. 4 LONG TERM FINANCING .803. Islamabad.475.006.445) 9.215. The Company is engaged in production and sale of cement. 2.963.910 - - - 1.330 1.585. 2010.864.820.527.743) 52.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION .330 - - - 1.047.338 13.963.122.626. 2010. ACCOUNTING POLICIES AND ESTIMATES The accounting policies.498.963. The Company's registered office is situated at Bestway Building.910 Issued.105.257.864.475.000.552 1.338 (3. 2001.358.527.833.743) (185.330 Share premium account Capital reserve Rupees 3.223 3.636.803.258. statement of changes in equity and cash flow statement are stated from unaudited condensed interim financial information for the three months period ended September 30.785.893 2.

567.396.939.202 (989. PLANT AND EQUIPMENT Fixed assets Capital work in progress Intangible Assets Stores held for capitalisation 8.000.2 16.396.256 2.594.764.486.728.776 16.145 16.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Unaudited 30 September 2010 Rupees 5 LONG TERM MURABAHA .723.2 Additions in property.000 111.000.067 213.000. The cement manufacturers (including the Company) have challenged the CCP order in Honourable High Court and the Honourable High Court has passed an interim order restraining CCP from taking any adverse action against these 21 cement companies.000) 1.000.2.597 (51.991.1 8.000 Current portion of long term murabaha Balance at end of the period/ year (120.734.071.745.189.1 In respect of letters of credit and contracts 7. 11 12 .secured Balance at beginning of the period/ year Disbursements during the period/ year Repayments during the period/ year 2.122.885.967 1.323.072.355 7.005.762 Audited 30 June 2010 Rupees 685.657.581. 2008 to 21 cement companies (including the Company) under section 30 of the Competition Ordinance.993 68.009 30. the Company has obtained short term finance facilities amounting to USD 7.329.000.000 2.000 (120.775 68.secured During the period. 8 PROPERTY.745.897 2. On August 27.000 1. plant and equipment Freehold land Buildings on freehold land Plant and machinery Other equipment Furniture and fixture Vehicle Office equipment Capital work in progress 267.327 84.622 99.991 (373.529 15.000) 1.870 3.000 BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION .823.1 Movement in property.508.329.537.843.75% per annum to six months' LIBOR plus 3.670.25% per annum.086 623.850) 11.285.926 28.537. Against the above referred order of CCP dated 27 August 2009 an appeal was also filed as abundant caution in the Honourable Supreme Court of Pakistan under Section 42 of the Competition Ordinance.2.005.966.072) (666.000. 533 million. plant and equipment Carrying value at beginning of the period/ year Additions during the period/ year Carrying value of disposals/ adjustments during the period/ year Depreciation charge for the period/ year Carrying value at end of the period/ year 8.081.000 450.966.896.408 1.280 2.776 16.000.885.000.661.896.926 6 SHORT TERM BORROWINGS .BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION .748.328. These facilities are secured against first pari passu hypothecation charge on present and future current assets of the Company amounting to Rs.2 Commitments 7.2 In respect of bank guarantees Note Rupees 862.836 16.646) (178. These appeals are still pending and management is confident of a favourable outcome of the case. 2007.3 All bank guarantees are secured by way of charge over operating fixed assets of the Company.414 8.000.000 110.587 198. 562 million on the Company.991 5.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Unaudited 30 September 2010 7.000. 2007.685) 16. 2009.762 Audited 30 June 2010 Rupees 7.000.675.005.455. CCP has imposed a penalty of Rs.679.287.926 16. Tax related contingencies are same as disclosed in the annual financial statements for the year ended 30 June 2010.000) 2. These facilities carry markup ranging from three month's LIBOR plus 2. 7 CONTINGENCIES AND COMMITMENTS 7. 682 million) from banks having maturity of six months on rollover basis.495) 16.000 (120.599.881 million (equivalent to Rs.000.505.896.396.1 Contingencies Competition Commission of Pakistan (CCP) has issued a show cause notice dated October 28.763 30.480.246 28.000 1.592 3. 376 million and present and future all assets of the Company excluding land and building amounting to Rs.

647 11 10 TRANSACTIONS WITH RELATED PARTIES (continued) Other related parties . therefore all subsidiaries and associated undertakings of Bestway (Holdings) Limited.422 7.642 73. associated undertakings. 2010 Rupees 2009 Rupees Management fee (income) Office rent received Utility expense received Dividend received 1.847. U.027 20.635.529. entities with common directorships.083 551.649.847.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 9 TRANSACTIONS WITH RELATED PARTIES Bestway (Holdings) Limited.500. directors and key management personnel .000 165.K.282.100 2009 Rupees Parent company Management fee (expense) Subsidiary company Sale of coal Purchase of coal Sale of gypsum Sale of cement Sale of packing material Advances given Recoveries made Purchase of clinker Management fee (income) Markup on advances given Stores.062.594 7.060 213. is the ultimate parent company of the Company.946 158.960 3.329 26. spare parts and loose tools given Stores. U. 31.213 120.665 623. 2010 Rupees Associated undertakings under common directorship Service and bank charges Quarter ended 30 September.000 19.180 764.671 CHIEF EXECUTIVE DIRECTOR & CFO 13 14 .780 277.000.678 74.BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION .413 5.426.594.000 93.704.742.665 48. spare parts and loose tools received Expenses incurred on their behalf 358.936.000 309.742 2.000 181.569.K are related parties of the Company.063.358.864 196.300 752.149. Other related parties comprise of subsidiary company.UNAUDITED FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Quarter ended 30 September.018 4.500.800 15.560 Sale of cement 1. major shareholders.Key management personnel Remuneration and allowances DATE OF AUTHORISATION This condensed interim financial information was authorised for issue by the Board of Directors of the Company in the meeting held on 29 October 2010.472 661.000 8.022.744 1.008. Transactions with related parties during the period are as follows: BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION .065 120. GENERAL Figures have been rounded off to the nearest rupee.

Consolidated Financial Information September 2010 .

298.330 646.217.759.000 87.175 179.834 5.015 16.257.885.207 1.189.269.910 1.192.270.000.490 1.102.271.495.458 39.000 Rupees June 2010 Rupees NON CURRENT ASSETS 3.048.662.192.834 5.331.000.490.835.475.747.225.566 1.222 CONTINGENCIES AND COMMITMENTS 8 0.189.000 Property.133 210.556 1.169 38.885.799 8.530.106.841.641.946 62.801.194.139 4.183 2.534 32.375.366.341.728.534 32.755.610 361.461.000.290.897.secured Liability against assets subject to finance lease-secured Long term murabaha-secured Long term advances Deferred liabilities CURRENT LIABILITIES Trade and other payables Markup payable Short term borrowings .000 12.486 10.622.418 6.528 1.298 39.876 1.144.000 87.289.804 9.872 120.845 157.674.495.148 24.215.792 120.963.064 10.335 1.731.617 315.686.192.578.398.631 5.906 10.014.570 38.788.445.257.308.considered good Advances Deposits and prepayments Interest accrued Other receivables Due from government agencies 2.308.490.510.693.446.353 340.41 The annexed notes 1 to 12 form an integral part of these consolidated financial statements.176 257.686.246.000 1.978) 4.533. spare parts and loose tools Stock in trade Trade debts.666.135.736 24. 10 each 3.555 1.989.135.611.910 1.721.076 Issued.713 310.718) 4.885.498. plant and equipment Goodwill Investment property 9 Note September 2010 Rupees June 2010 Rupees 25.482.BESTWAY CEMENT LIMITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2010 BESTWAY CEMENT LIMITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2010 September 2010 Note SHARE CAPITAL AND RESERVES Authorised share capital 350.715.secured Current portion of long term financing Current portion of liability against assets subject to finance lease Current portion of long term murabaha 6 7 5 6 5 3.475.960.298 Cash and bank balances 3.000.842 877.097 (13.143.557.433.298.110.192.850 154.500.133.625 3.072.137.058.715.624.808.169 2.908. subscribed and paid up share capital Share premium Exchange reserve Cash flow hedge reserve Unappropriated profit Minority interest NON CURRENT LIABILITIES Long term financing .330 579.644.240.002 4.000 1.914 3.226 154.303.286.309.000.482.797 13.000.402.800 1.500.375.977 Stores.611.000.226 154.523 36.435.986 25.196 16.000 (2010: 350.508.711.353 340.524 (11.112 43.192.833.065.595.000 11.857.000) ordinary shares of Rs. CHIEF EXECUTIVE DIRECTOR & CFO 17 18 .339.093 19.874.635.917 4.112 50.000.018.936.674.926 5.751 Long term investments Long term advance Long term deposits CURRENT ASSETS 13.963.498.192.133.018.192 151.309.058.

367.892.BESTWAY CEMENT LIMITED CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Quarter ended 30 September 2010 Rupees Turnover-net Cost of sales Gross profit Administrative expenses Distribution cost Other operating expenses Finance cost Other operating income 3.615.647.104.266 100.708 Total comprehensive income for the period attributable to: 136.231.837) 1.524) 2009 Rupees 4.098 Shareholders of the Parent Company Non-controlling interest (68.534.222) 1.881.160.191. CHIEF EXECUTIVE DIRECTOR & CFO CHIEF EXECUTIVE DIRECTOR & CFO 19 20 .615.767) (23.202 The annexed notes 1 to 12 form an integral part of these consolidated financial statements.864.484 2.949 BESTWAY CEMENT LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INOME (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Quarter ended 30 September 2010 Rupees (Loss)/ profit for the period attributable to: Shareholders of the Parent Company Non-controlling interest Other comprehensive income: Exchange translation reserve Gain/(Loss) on cash flow hedge reserve Related deferred tax (liability)/ asset on cash flow hedge reserve Other comprehensive income for the year .337 803.085.257.524) 1.884.053.721.705.674.075 (15.874.645 524.107 43.246.686 (19.923.448) 69.017.001.098 The annexed notes 1 to 12 form an integral part of these consolidated financial statements.898.568 106.864.884 (12.651.632) 936.110 Share of profit in associated company (Loss)/ profit before taxation Taxation .618.524) 75.671.357.216.989.842) (140.534.249 568.995.687 (71.net of tax Total comprehensive income for the period 67.198 (247.072.053.212.096) (71.438.228 (15.117) (73.786) 62.651) (52.768) 62.647.804.951 314.367.837) 327.826.866 (21.127.288) 6.143.632) 1.222) 1.452.881.793.202.043.311.459 6.561.702.853.477.741) (3.546.721.202 (138.558.708 (858.Current Deffered 213.625 3.325) 130.149.482.651.682) (2.383.146 40.090.853 2009 Rupees 178.424 (15.068.139 (7.339 475.243 (Loss)/ profit for the period (140.216.682) (2.835.864.349 1.518 1.427 2.631. Attributable to: Shareholders of the Bestway Cement Limited Non-controlling interest (138.842) (140.

234) (213.272 579.963.315 214.825 67.674.014.313) (758.624.893.645) 1.286.011 944.260 154.215.705 (87.726.755 (Increase)/ decrease in current assets Stores.498. subscribed and paid up share capital 3.682) (138.133. spare parts and loose tools Stock in trade Trade debts Advances Deposits and prepayments Accrued Profit Other receivables Due from Government agencies Increase/ (decrease) in current liabilities Trade and other payables Cash (used in)/ generated from operations Finance cost paid Staff retirement benefits paid Income tax paid Net cash (used in)/ generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Additions in capital work in progress Additions in fixed assets (Increase)/decrease in stores held for capitalization Additions in long term investments .247) 599.001) (4.575) 164.401.906 (2.272.736.216.172.184 (193.532.620) (140.217.431) (20.498.983) (690.317 266.053.net of tax Total comprehensive income for the year Total comprehensive income for the year Cash and cash equivalents at end of the period The annexed notes 1 to 12 form an integral part of these consolidated financial statements.319) Rupees 9.393 (3.910 - - - - - 1.718) 1.595.393.421.978) (403.165.914 578.189.694.728.750 1.963.119.198.715) 690.058.121 10.260 - - - - 4.644.804) 92.139 10.097 Rupees 1.582.033.895.BESTWAY CEMENT LIMITED CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 BESTWAY CEMENT LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Rupees 10.865 (1.831.568.283.861.069) 69.500 (305.375.427 - - - (11.363) 203.571 (33.319 (176.835.216.246.577) 25. 179.233) (492.174.003.786.845 (138.476) 331.910 3.475.624 (517.295) (10.330 - - - - - 646.033.331) (206.483 10.260 10.201) (178.482.234 93.522 657.064 Net (decerese) in cash and cash equivalents (30.567.518 905.863 627.196 (3.427 1.622.475.503) 92.989) (338.681) (303. recorded directly in equity Loss for the period Total comprehensive income/ (expense) for the period Loss for the year Others comprehensive income for the year .131.951.285) (2.230.618.647.308 4.429.329.708) 524.641) Rupees 486.638 157.009) The annexed notes 1 to 12 form an integral part of these consolidated financial statements.507.826.647.420 Balance as at 01 July 2009 22 CHIEF EXECUTIVE DIRECTOR & CFO Quarter ended 30 September 2010 2009 - .751 (285. recorded directly in equity Transactions with owners.304.343) (4.308 7.524) 67.248) (346.317.234.854.357.893.297.966) 541.330 Share premium Rupees 3. 2010 Cash and cash equivalents at beginning of the period 210.021.594.470.990.925 462.216.594.605 (450.427 1.642.847.442.892.076) (58.119.842) (113.144.462 52.863 (579.681 Total (264.449.500 1.257.070.083.681 Unappropriated profit Attributable to shareholders of the Parent Company Exchange reserve Cash flow hedge Advance for issue reserve of right shares - - - - - - - Rupees (12.963.524 92.376) (60.423.744 32.102.216.681 305.301) Rupees 481.799 (29.033.682) (138.334.157.033.569.649.682) 305.724.503) (264.033.470.267 145.330 1.897.418 0 135.720) (72.289.518) 11.297.850 67.725 89.controlling shares by Parent Compnay Total transaction with owners.337) Rupees (13.941 119.925.152.184 (172.926) (1.486 (138.767) (292.631.864.804 - 9.net Proceeds from sale of fixed assets Profit received on deposit accounts Dividend received Net cash generated/ (used in)from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in short term borrowings Decrease in long term security deposits Net cash generated/ (used in) from financing activities 627.290.301) (20.853.906.442 678.493) (279.282) (30.139.354) 309.072.371) (254.864.165.685.896.503) Rupees 4.866 Total Rupees Rupees 578.392.057) (145.641) (403.648.227 (11.695 36.140.145) 136. Total comprehensive income for the period ended 30 September 2010 Parent Company's share of associate's exchange translation reserve-net Cash flow hedge reserve Transaction with owners.127 (11.498.681 305.234. recorded directly in equity Issue of right shares Premium on issue of right shares Effect of dilution in non-controlling interest due to purchase of unsubscribed non. plant and equipment Depreciation Rental income from investment property Profit on deposit accounts Share of profit in associated company Finance cost Provision for staff retirement benefits Exchange Loss/( gain) (247.966 Balance as at 30 September.278.271.666.542 Non Controlling Interest (264.705.842) (2.000 (578.470.825 92.282) 670.682) 305.571) 1.198) 803.604 (451.989.165.111.618.257.504.377 CHIEF EXECUTIVE DIRECTOR & CFO 21 Balance as at 30 June 2010 Exchange (loss)/ gain (214.114.654.524) (140.475.157.594.750 1.456) (22.250 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss)/ profit before taxation Adjustments for: Gain on disposal of property.407.624) (6.618.203.000.870) 2.910 Issued.264) (344.568.257.834.834.305.562.

Non controlling interest is that part of net results of the operations of the Subsidiary Company attributable to interests which are not owned by the Parent Company. These facilities are secured against first pari passu hypothecation charge on present and future current assets of the Group amounting to Rs. 3. College Road.675. and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended June 30. 1993 under the Companies Ordinance. 1913 since repealed and replaced by the Companies Ordinance.000 (120. Subsidiaries are those enterprises in which the Parent Company directly or indirectly controls. estimates and assumptions adopted for preparation of this condensed interim consolidated financial information are the same as those applied in preparation of the annual audited consolidated financial statements for the year ended June 30. Comparative figures of the balance sheet are extracted from the audited annual consolidated financial statements for the year ended June 30. The financial statements of the Subsidiary Company have been consolidated on a line-by-line basis. Minority interest is presented as a separate item in the consolidated financial statements.000) 2. 3 BASIS OF PREPARATION LONG TERM FINANCING . 1984 and have been prepared in accordance with the requirements of International Accounting Standard 34 "Interim Financial Reporting". 2010. 533 million. 19-A.75% per annum to six months' LIBOR plus 3.000.298. 2 BASIS OF CONSOLIDATION These condensed interim consolidated financial statements include the financial statements of the Parent Company and the Subsidiary Company together constituting "the Group".803.112) 13. 1984 and is listed on the Karachi Stock Exchange (Guarantee) Limited since April 9. The Subsidiary Company is a public company incorporated in Pakistan on July 29. the Group has obtained short term finance facilities amounting to USD 7.000 (120. Islamabad. 2010.803. 1984 and is listed on the Karachi.000. 19-A.298. These facilities carry markup ranging from three month's LIBOR plus 2.482. 1954 under the Companies Act. 2010 whereas comparative profit and loss account.000.000 450.000.112) 13.25% per annum.803.780.780.000. statement of changes in equity and cash flow statement are stated from unaudited condensed interim consolidated financial information for the three months period ended September 30.secured Balance at the beginning of period/year Disbursements during the period/year Repayments during the period/year Less: Current portion shown under current liabilities Balance at the end of period/year 2. 3.000.000.338 17.192. The Parent Company's registered office is situated at Bestway Building.3 This condensed interim consolidated financial information does not include all of the information required for full annual consolidated financial statements. 23 24 .482.000) 1.338 17.881 million (equivalent to Rs.338 (4.192.1 This condensed interim consolidated financial information has been prepared in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. 376 million and present and future all assets of the Company excluding land and building amounting to Rs. 2010 5 The Parent Company has 95.000.885. The Subsidiary Company is engaged in production and sale of cement.000 2. 7 SHORT TERM BORROWING .611.000 (120.59%) holding in Mustehkam Cement Limited ("the Subsidiary Company").611.780. transactions and resulting unrealized profits/ (losses) have been eliminated. The Subsidiary Company's registered office is situated at Bestway Building. College Road F-7 Markaz.secured During the period.2 These condensed interim consolidated financial statements are unaudited and are being submitted to the shareholders as required under Section 245 of the Companies Ordinance.005. Islamabad. All material inter company balances.000. related judgments.226 6 LONG TERM MURABAHA . F-7 Markaz.000 3.000 1. beneficially owns or holds more than 50 percent of the voting securities or otherwise has power to elect and appoint more than 50 percent of its directors.005.780.005.03% (2009: 86.338 (4.000.885. 2001.803. Lahore and Islamabad Stock Exchanges.226 Balance at the beginning of period/year Disbursements during the period/year Balance at the end of period/year Less: Current portion shown under current liabilities 17. 4 BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 ACCOUNTING POLICIES AND ESTIMATES The accounting policies. The financial statements of the Subsidiary Company are included in the consolidated financial statements from the date the control commences until the date the control ceases. The Parent Company is engaged in production and sale of cement. 682 million) from banks having maturity of six months on rollover basis.secured Unaudited 30 September 2010 Rupees Audited 30 June 2010 Rupees 17.000) 1.BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 1 LEGAL STATUS AND OPERATIONS Bestway Cement Limited ("the Parent Company") is a public company incorporated in Pakistan on December 22.

CCP imposed a penalty of Rs.523. 8.000 1.610 10 Balance at the beginning of the period/ year Additions during the period/ year Transfers during the period/ year Balance at the end of the period/ year 84. 2009.104.4 Share of contingencies & commitments in associated company Contingencies Direct credit substitutes Transactions related Trade related Tax related Others Commitments In respect of sale of forward foreign exchange contracts In respect of purchase of forward foreign exchange contracts Others 25 1.972.104.221 134.239 9.823 68.613.329.148 1.060.000 25.3 Tax related contingencies are same as disclosed in the annual financial statements for the year ended June 30.411.034 17.826 8.208.081.058 233.755.985 1. 2007.1 All bank guarantees are secured by way of charge over fixed assets of the Group.104.599.625.1 9.595.687.573 469. Other related parties comprise of directors.580. therefore.000. 9.925.101.104.997 68.833.269.431) 87.104.072.308 7.708.782.015 7.739 3.329.960.014 30.783. entities with common directorships and entities over which the directors are able to exercise influence.255.2 Unaudited 30 September 2010 Rupees 25.270.293 144.646) (309.581.152.983 (210.145 30.617.000.886) (999.207 8 CONTINGENCIES AND COMMITMENTS 8.624.141.2 Competition Commission of Pakistan (CCP) has issued a show cause notice dated October 28.717.131) 25.233.028. Against the above referred order of CCP dated 27 August 2009 an appeal was also filed as abundant caution in the Honourable Supreme Court of Pakistan under Section 42 of the Competition Ordinance.762 BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 20100 PROPERTY.229.000.342. 8.087 (8.135 3.036. all subsidiaries and associated undertakings of the ultimate parent company are related parties of the Group.000 25.222 7.518.532.073.139.015 7.072. The transactions with related parties are as follows: 4.468 26 .221 7. On August 27.356.569.764 240.293 8.110. 2010.044.356.645.108 1.473 3. PLANT AND EQUIPMENT Note Fixed assets Capital work in progress Stores held for capitalisation Intangible assets 9.298 (373.2 Capital work in progress 25.633. 636 million on the Group. key management personnel. 2008 to 21 cement manufactures (including the Group) under section 30 of the Competition Ordinance.518.367.833.325.503.764 123.894.081.1 Fixed assets Book value at the beginning of the period/ year Additions during the period/ year Transfer from CWIP Book value of disposals/ adjustments during the period/ year Depreciation charge for the period/ year Book value at the end of the period/ year 9.393) 25.945.397.BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 9 Unaudited 30 September 2010 Rupees In respect of letters of credit and contracts In respect of bank guarantees 959.370.431 (59.298 21.528 Audited 30 June 2010 Rupees 25.526) 114.158.849.764 TRANSACTIONS WITH RELATED PARTIES The Group is controlled by the ultimate parent company.298 84.762 Audited 30 June 2010 Rupees 710. These appeals are still pending and management is confident of a favourable outcome of the case. The cement manufacturers (including the Group) have challenged the CCP order in Honourable High Court and the Honourable High Court has passed an interim order restraining CCP from taking any adverse action against these 21 cement manufactures.518.508.378 9.072. 2007.229.

12 GENERAL Figures have been rounded off to the nearest rupee.348.BESTWAY CEMENT LIMITED SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) FOR THE QUARTER ENDED 30 SEPTEMBER 2010 Quarter ended 30 September 2010 Rupees Parent company Management fee (expense) Associated undertakings under common directorship Service and bank charges Management fee (income) Office rent received Utility expense paid Dividend received Sale of cement Other related parties .961 120.649.000 181.678 74.Key management personnel Remuneration and allowances 11 DATE OF AUTHORISATION This condensed interim financial information was authorised for issue by the Board of Directors of the Company in the meeting held on 29 October 2010.000 93.744 1.560 1.800 15.000 165.629.207 20.864 1.543 CHIEF EXECUTIVE DIRECTOR & CFO 27 .308.242 28. 2009 Rupees 196.589 120.358.022.100 33.180 853.