PROJECT REPORTFINANCIAL ACCOUNTING

Lucky Cement Limited was founded in 1993 by Tabba Memons. The company initially started with factories in Pezu district of the N.W.F.P. It now, also, owns a factory in Karachi. Lucky Cement Limited (LCL) is one of the largest cement producers and leading exporters in Pakistan with the production capacity of 7.75 million tons per annum. The company is listed on Karachi, Lahore, Islamabad and London Stock Exchange. Over the years, the company has grown substantially and is expanding its business operations. It is sponsored by one of the largest business groups in Pakistan, the Yunus Brothers Group, based in Karachi. For nearly two decade, Lucky Cement has accelerated towards driving positive change to boost the economic and infrastructural development in Pakistan and elsewhere in the world.

INTRODUCTION

Muhammad Yunus Tabba

The Chairman is responsible to:• Ensure that the board plays its role effectively.• Ensure that the board only directs the company and does not manage it.• Ensuring diversity of talent, skills and philosophical perspectives and balance of age, experience and personality.• Ensure integrity, credibility, trustworthiness and active participation of board members.• Manage conflict amongst the board members and ensure freedom of opinion.• Review the board performance.• Sharing relevant and up-to-date information with the board members and shareholders.• Promote highest moral, ethical and professional value throughout the company.

Under Mr. Yunus Tabba’s leadership, the company has achieved considerable breakthroughs and has received many awards from local and international institutions.

CHAIRMAN

Muhammad Sohail Tabba

Jawed Yunus Tabba

Zulekha Tabba Maskatiya

Abid GanatraTariq Iqbal Khan

Raheela AmeenChairman of Board’s Budget

CommitteeChairman of the Corporate

Governance CommitteeChairman of Board’s HR & Remuneration

Committee

Director of Corporate Governance & Social

Responsibility Chief Financial OfficerChairman of Board’s

Audit Committee

BOARD OF DIRECTORS

HR AND REMUNERATION COMMITTEEI. Mrs. Rahila Aleem (Chairperson)II. Mr. Muhammad Ali TabbaIII. Mr. Muhammad Sohail TabbaIV. Mr. Javed Yunus TabbaV. Zulekha Tabba Maskatiya

RESPONSIBILITIESThe responsibilities of HR Committee includes the following:a) Recommending HR management policies to the boardb) Recommending to the board the selection, evaluation,

compensation and succession planning of the CEOc) Recommending to the board the selection, evaluation,

compensation of CFO,COO, Company Secretary and Head of Internal Audit

d) Reviewing the audit observationse) To ensure disclosure and transparency of the policies and

material information to the shareholders in the timely manner.

NAME OF DIRECTORS DESIGNATIONMr. Muhammad Ali Tabba Chief Executive DirectorMr. Noman Hassan Executive DirectorMr. Muhammad Yunus Tabba Non-Executive DirectorMr. Muhammad Sohail Tabba Non-Executive DirectorMr. Jawed Yunus Tabba Non-Executive DirectorMrs. Rahila Aleem Non-Executive DirectorMrs. Zulekha Tabba Maskatiya Non-Executive DirectorMr. Muhammad Ali Ganatra Non-Executive Director

DIRECTORS

VISION

We envision being the leader of the cement industry in Pakistan, identifying and

capitalizing on new opportunities in the global market, contributing towards industrial progress and sustainable

furniture, while being responsible corporate citizens.MISSION

Our mission is to be a premium cement manufacturer by building a professional organization, having a state-of-the-art

technology, indentifying new prospectus to reach globally and maintain service and

quality standards to cater to the international construction need with an

environment-friendly approach.

CAUSE SUPPORTED FY 2014-15 FY 201-14Amount donated (PKR In ‘000)

Educational Scholarships & Initiatives

2,899 71,311

Health Initiatives & Financial Assistance to Patients etc.

33,442 31,745

Other Welfare Causes 170,300 115,000General Donations 37,529 56,026TOTAL AMOUNT DONATED

244,170 274,081

CORPORATE SOCIAL RESPONSIBILTYLucky Cement has a roadmap with respect to Corporate Social Responsibility to support in the areas of education, health and

environment through various welfare initiatives; which are undertaken both directly through company’s financial assistance and indirectly by patronizing country’s civil society institutions and NGOs geared toward

creating a social impact.

FORBES ASIA’s 200 BEST UNDER A BILLION KARACHI STOCK EXCHANGE TOP 25 COMPANIES AWARD TRADE DEVELOPMENT AUTHORITY OF PAKISTAN’s EXPORT & INNOVATION AWARD 2014 BRAND OF THE YEAR AWARD 2014 NATIONAL CSR AWARD 2014 GREEN SUPPLY CHAIN AWARD 2014 ENVIRONMENT EXCELLENCE AWARD 30th CORPORATE EXCELLENCE AWARD 2014 BY MANAGEMENT ASSOCIATION OF PAKISTAN

AWARDS WON BY COMPANY

Allied Bank Ltd. Habib Metropolitan Bank Ltd.Askari Bank Ltd. MCB Bank Ltd.Bank Alfalah Ltd. Meezan Bank Ltd.Bank AL-Habib Ltd. National Bank of PakistanBarclays Bank Plc, Pakistan NIB Bank Ltd.Citibank N.A. Standard Chartered BankDubai Islamic Bank Pakistan Ltd.

Summit Bank Ltd.

Habib Bank Ltd. United Bank Ltd.

BANKERS

EXTERNAL AUDITORS

M/s Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants.(A member firm of Ernst & young Global Limited)

AUDIT COMMITTEE

• Mr. Tariq Iqbal Khan-Chairman• Mr. Muhammad Ali Tabba• Mr. Muhammad Sohail Tabba• Mr. Jawed Yunus Tabba• Mrs. Zulekha Tabba Maskatiya• Mr. Muhammad Abid Ganatra

TYPE OF AUDIT OPINION

The Chief Financial Officer and Head of Internal Audit possess the requisite qualification and experience as prescribed in the Code of Corporate Governance.

AUDITORS

LEGAL ADVISOR

• Shakeel ur Rehman & Co.• Taxwisers

TAX CONSULTANTS

Mr. Mustafa Lakhani

SHARE REGISTRARCentral Depository Company of Pakistan Ltd. (CDC) YEAR OF LISTING ON THE STOCK EXCHANGEIn 1994, LCL got listed on Karachi, Lahore & Islamabad Stock Exchanges, while in 2008, it got listed in London Stock Exchange.

CREDIT RATINGLong Term: N/AShort Term: N/A

COMREHENSIVE INCOMEComprehensive Income for the Years (2011 -

2015)

2011 Rs. 3,970,400,000

2012 Rs. 6,782,416,000

2013 Rs. 9,713,948,000

2014 Rs. 11,343,740,000

2015 Rs. 12,376,962,000

BASIC & DILUTED EARNINGS PER SHARE

The earnings per share of LCL for the year ended June 30, 2015 was PKR 38.44 as compared to PKR 35.08 reported last year.

FINANCIAL RATIOS

FINANCIAL RATIOS FY2011-15

Years Current ratio

Quick ratio

Dividend Payout ratio

Return on Equity after tax

Debt to Equity ratio

Assets turnover

Breakup value per share

Price earning ratio

2011 0.88 : 1 0.18 : 1 32.58% 14.30% 0.02 : 1 0.63 77.61 5.76

2012 2.64 : 1 0.80 : 1 28.61% 20.39% 0.01 : 1 0.82 85.88 5.50

2013 3.38 : 1 1.66 : 1 26.54% 23.67% 0.00 : 1 0.75 102.86 6.95

2014 4.37 : 1 2.65 : 1 25.65% 22.78% 0.00 : 1 0.72 126.90 11.69

2015 3.64 : 1 2.75 : 1 23.41% 20.89% 0.00 : 1 0.61 153.98 13.51

STATEMENT OF CASH FLOWCash Flow from Operating activities

2011 4,074,000,000

2012 9,375,000,000

2013 12,246,000,000

2014 13,566,000,000

2015 19,009,000,000

Cash Flows from Investing Activities

2011 1,895,000,000

2012 1,030,000,000

2013 8,094,000,000

2014 4,948,000,000

2015 8,136,000,000

Cash Flow From Financing Activities

2011 2,161,000,000

2012 7,851,000,000

2013 2,191,000,000

2014 2,832,000,000

2015 3,018,000,000

MISC.

Years Authorized capital Issued & paid-up capital

Revenue reserves for each year

Capital reserves for each year

Market value per share

Cash dividends per share

2011 5,000,000,000 3,233,750,000 - 7,343,422,000 70.84 4.00

2012 5,000,000,000 3,233,750,000 - 7,343,422,000 115.39 6.00

2013 5,000,000,000 3,233,750,000 30,458,271,000 7,343,422,000 209.72 8.00

2014 5,000,000,000 3,233,750,000 39,215,011,000 7,343,422,000 410.30 9.00

2015 5,000,000,000 3,233,750,000 48,681,598,000 7,343,422,000 519.62 9.00