DANDOT CEMENT COMPANY LIMITED

DIRECTORS’ REPORT TO THE MEMBERS

 

Your Directors are pleased to present the accounts ( un-audited ) of the Company for the first quarter ended September 30, 2006.

 

The comparative data for production of clinker & cement and despatches of cement for the first quarter is summarized hereunder: -

 

 

September

2006

September

2005

 

(Tonnes)

(Tonnes)

 

 

 

  Clinker Production

72,800

82,606

  Cement :

 

 

          Production

82,750

87,667

          Despatches

77,351

87,692

 

During the quarter under review, production of clinker and cement decreased by 11.9% and 5.6% respectively whereas the Company’s despatches of cement decreased 11.8% in comparison with the previous corresponding quarter. Capacity utilization decreased to 61.4% during the quarter under review. The decrease in operating performance of the Company is due to planned shut down of the plant for maintenance and BMR for 20 days in the month of July 2006. As a result of this low production level the financial results of the Company also suffered. The Company incurred operating loss of Rs. 52.3 million in the quarter ended September 2006, as against operating profit of Rs. 43.5 million in the  corresponding quarter of preceding year. Moreover the Company suffered loss after taxation of Rs. 86.9 million for the first quarter under review as against profit after taxation of Rs.35.0 million in the quarter ended September 2005.

 

During the previous financial year, cement sector posted a positive growth and we are confident that the cement industry shall continue its impressive growth rate due to the prevailing aggressive business environment in the country in general and construction & large-scale manufacturing sectors in particular.

 

The Board of Directors appreciates the efforts and devotion of the employees, the executives and the entire team of management and anticipates that they will contribute towards the enhancement of the productivity and well being of the Company in future with greater zeal & spirit. The Board extends its gratitude to the financial institutions for their valued support and co-operation for the Company’s prosperity.

 

For and on behalf of the Board

 

 

 

 

A. RAFIQUE KHAN                                                Lahore: October 21, 2006

Chairman