DANDOT CEMENT
COMPANY LIMITED
DIRECTORS’ REPORT TO THE MEMBERS
Your Directors are pleased to
present the accounts of the Company for the second quarter ended December 31,
2006, reviewed by the auditors of the Company.
The comparative data for production of clinker
& cement and dispatches of cement for the second quarter is summarized hereunder:
-
|
|
|
|
Second quarter ended |
|
Half year ended |
||||
|
|
|
|
Dec. 2006 |
|
Dec. 2005 |
|
Dec. 2006 |
|
Dec. 2005 |
|
|
|
|
( Tonnes ) |
|
( Tonnes ) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Clinker
Production |
|
95,905 |
|
76,054 |
|
168,705 |
|
158,660 |
|
|
Cement : |
|
|
|
|
|
|
|
|
|
|
|
Production |
|
103,327 |
|
85,054 |
|
186,077 |
|
172,721 |
|
|
Dispatches |
|
107,176 |
|
84,734 |
|
184,527 |
|
172,426 |
During the period under review, the operating
performance of the Company improved as compared to the preceding comparable
quarter and half year. In general, the performance of the cement plant remained
satisfactory.
Likewise, a summary of the Company’s financial
results for the Half year ended December, 2006 along with the comparative data
of the preceding comparable period is provided here under:
|
|
|
|
Second quarter ended |
|
Half year ended |
||||
|
|
|
|
Dec. 2006 |
|
Dec. 2005 |
|
Dec. 2006 |
|
Dec. 2005 |
|
|
|
|
( Rs. In Million ) |
|
( Rs. in Million ) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit / (Loss) |
|
(92.5)
|
|
58.5 |
|
(133.5) |
|
116.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit / (Loss) |
|
(123.9) |
|
42.4 |
|
(176.2) |
|
85.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit /
(Loss) before taxation |
|
(167.8) |
|
26.6 |
|
(253.4) |
|
63.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit / (loss) |
|
|
|
|
|
|
|
|
|
|
after taxation |
|
(201.6) |
|
(30.9) |
|
(288.4) |
|
4.2 |
|
The Company’s reduced financial performance
as discussed above is mainly attributed to stiff market competition which
resulted in steep decline in the Company’s average net sale price from Rs. 3,750
per tonne in the previous comparable quarter to Rs. 2,160 per tonne in the
current quarter under review.
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
ABDUR
RAFIQUE KHAN Lahore:
March 2, 2007
Chief Executive