Cement: DEWAN CEMENT LIMITED - (Formerly Pakland Cement Limited) Nine Months Ended March 31 2005

Dewan Cement Limited (Formerly Pakland Cement Limited) was incorporated in Pakistan as public limited company in March 1980. The principal activity of the company is manufacturing and sale of cement. Its manufacturing facilities are located at Deh Dhando, Malir Karachi, whereas its registered office is situated in Dewan Centre 3-A Lalazar Beach Hotel Road, Karachi.
Its shares are quoted on the Karachi and Lahore Stock Exchanges since June 1999. The change of name to Dewan Cement Limited from Pakland Cement Limited was approved by the registrar of companies on February 25, 2005. At present the Dewan Cement shares are trading at Rs 15 per share carrying 50% premium over the par value. During the last one year the market value of the share remained within high/low of Rs 29.10/Rs 13.55.
Dewan Cement Ltd is a part of a large conglomerate Dewan Mushtaq Group (DMG) which has diversified interests in textile, sugar, polyester and acrylic staple fibre, assembly-cum progressive manufacture of automobiles and equity participation in private bank.
Other allied businesses include a polypropylene sacks making and particle board manufacturing as downstream industries of sugar industry and automotive parts manufacturing as backward integration of its automobile industry.
As a result of the take-over of management by DMG, the company's creditors (being the TFC's) and the new management have finalised the Scheme which has been approved by Honourable High Court of Sindh, whereby the creditors have approved the following: Waiver of mark-up from TFC's; Series A and C for the period January 01, 2001 to May 31, 2004; Waiver of seventy percent of the outstanding liability as of May 31, 2004 from TFC's; Series B representing accrued return on the principal/investment portion of previously structured liabilities; the Executive Committee constituted under the previous Scheme of Arrangement will remain operative to monitor the financial affairs of the company.
During the period under review (9M 2004-05), the company posted net sales amounting to Rs 1,329.45 million (9M 2003-04: Rs 985.19 million) registering increase by 34.9% as compared to sales in the same period last year (SPLY). However net profit declined by 74.9% to Rs 33.05 million from Rs 131.67 million in the SPLY.
The company's expansion of plant is also underway.

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Performance Statistics                        (Million Rupees)

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Balance Sheet                                          -As At-

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                                        March 31       June 30

                                            2005          2004

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Share Capital-Paid-Up:                    825.00        825.00

Reserves:                                 103.38         23.54

Shareholders Equity:                      928.38        848.54

Surplus On Revaluation

Of Fixed Assets:                          803.22        813.41

Subordinated Loans:                       500.00             -

Other L.T. Debts:                       3,334.39      3,396.51

Retention Money:                           19.23         18.98

Security Deposits:                         40.89        134.21

Deferred Taxation:                        504.08        505.13

Current Liabilities:                      870.62        834.84

Tangible Fixed Assets:                  5,331.48      5,404.26

L.T. Investment:                          800.00        800.00

L.T. Loans:                                 1.05          1.09

L.T. Deposits:                              2.11          2.53

Current Assets:                           866.17        343.74

Total Assets:                           7,000.81      6,551.62

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Profit & Loss A/c for Nine Months ended

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 March 31                                   2005          2004

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Net Sales:                              1,329.45        985.19

Gross Profit:                             276.30        245.97

Other Income:                               8.61          7.88

Operating Profit:                         243.23        217.88

Financial (Charges):                    (167.98)       (24.72)

Profit Before Taxation:                    75.25        193.16

Profit After Taxation:                     33.05        131.67

Earnings Per Share (Rs):                    0.40          1.60

Share Price (Rs) on 12-07-05:              15.00             -

Price/Earning Ratio:                       37.50             -

Book Value of Share (Rs):                  11.25         10.28

Debt/Equity Ratio:                         60:40         67:33

Current Ratio:                              0.99          0.41

Gross Profit Margin (%):                   20.78         24.96

Net Profit Margin (%):                      2.49         13.36

R.O.A. (%):                                 0.47          2.01

R.O.E. (%):                                 3.56         15.52

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