Dandot Cement : Transmission of Quarterly Report for the Period Ended December 31, 2022

Half Yearly Report

December 31

2022

DANDOT CEMENT COMPANY LIMITED

CONTENTS

Half Yearly Report

Company Information	3
December 31, 2022	4
Directors' Report to the Shareholders
Auditors' Reports to the Members on Review of Condensed Interim Financial Statements	6
Condensed Statement of Financial Position	8
Condensed Interim Statement of Profit or Loss	10
Condensed Interim Statement of Comprehensive Income	11
Condensed Interim Statement of Cash Flows	12
Condensed Interim Statement of Changes in Equity	13
Notes to the Condensed Interim Financial Statements	14
Directors' Report to the Shareholders (Urdu)	22

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		COMPANY INFORMATION
Board of Directors (BOD)
Taha Muhammad Naseem	Chief Executive
Muhammad Farooq Naseem	Chairman of BOD
Mrs. Roohi Farooq Naseem
Zaka Muhammad Naseem
Hamid Mahmood
Murtaza Yousuf Mandviwala
Shafqaat Ahmed
Audit Committee
Shafqaat Ahmed	Member / Chairman / Secretary
Muhammad Farooq Naseem	Member
Hamid Mahmood	Member
Human Resouces & Remuneration Committee
Murtaza Yousuf Mandviwala	Member / Chairman
Muhammad Farooq Naseem	Member
Taha Muhammad Naseem	Member

Chief Financial Officer

Muhammad Kamran

Statutory Auditors

Parker Russell -A.J.S.

Chartered Accountants, Faisalabad.

Company Secretary

Muhammad Kamran

Legal Advisor

International Legal Services

Bankers

The Bank of Punjab

United Bank Limited

National Bank of Limited

Habib Bank Limited

Bank Alfalah Limited

BankIslami Pakistan Limited

Bank Al-Habib Limited

Askari Bank Pakistan

JS Bank Limited

Habib Metropolitan Bank Limited

Registered Office / Postal Address

5-Zafar Ali Road, Gulberg V, Lahore.

Telephone: [phone]

Factory

Dandot R.S., Distt. Jhelum.

Telephone: [phone]

Share Registrar

Corplink (Pvt.) Limited.

Wings Arcade 1-K-Commercial, Model Town, Lahore.

Telephone: [phone], Fax: [phone]

Website

www.dandotcement.com

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DIRECTORS' REPORT TO THE SHAREHOLDERS

The Board of Directors presents the un-audited condensed financial statements of the company for the period ended December 31, 2022.

Principal Activity and Operational Performance

Dandot Cement Company Limited (the Company) is a Public Listed Company. The principal activity of the Company is production and sale of cement. During the period under review, cement production & related sales volume remained suspended due to closure of plant operations for BMR activity since September 2019. Net loss for the period is Rs. 126.28 million (Dec 2021: Rs. 116.92 million) and loss per share is Rs. 0.51 (Dec 2021: Rs. 0.56). Due to closure of operations and financial losses, dividend has not been recommended by the board of directors for the current period.

Future Prospects

Industry:

Pakistan's economy has been adversely affected due to the fact of political instability, destructive floods, economic instability, depreciating PKR against USD, super commodity cycle, and the Russia-Ukraine war. High inflation and interest rates have reduced purchasing power and high construction costs have waned demand. However, as some stability is found, cement demand will increase due to the growing population's need for basic infrastructure, and upgrading of the old.

Principal Risks and Uncertainties

• Increasing coal, fuel and electricity prices.
• Higher Interest rates.
• Aggressive devaluation of Pak Rupee against the dollar.
• Increasing supply with stagnant demand.

Company's Plan

In a period filled with uncertainties and volatility the company has progressed steadily towards the completion of the BMR. The project time line is maintained and expected completion is before the end of financial year 2022-

23. The BMR aims to bring the carbon emission of the company on par with the Pakistan Emission Standard and improve production metrics. 5 MW solar has also been installed to optimize the power mix and also reduce carbon footprint. The company is achieving its milestones on the path to create value and stability for all stakeholders of the Company.

Auditor's Observations

The company is in the process of Balancing, Modernization and Replacement (BMR) and the management is fully confident that the company shall commence commercial production in the end of financial year 2023 and will continue its operations as a going concern. Workers' compensation benefits in excess of statutory/legal requirements will be subject to recognition after final determination and verification by the Competent Authority. Due to suspension of operations for the purpose of BMR activity, depreciation relating to cost of sale and distribution has been directly charged to the statement of changes in equity. Letters for the balance confirmation have been circulated during the audit for the year ended June 30, 2022 but against that some replies have not been received. However, such balances have been verified by auditors' through alternative audit procedures.

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