attock cenent cost audit report_2010

8/3/2019 Attock Cenent Cost Audit Report_2010

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SIDDIQI & COMPANYCost & Management Accountants

Suite # 147, First Floor, Haroon Shopping Emporium, Sector 15-A/1, North Karachi-75850 (Pakistan).

Tel: (92-21) 36971814 - 36931527, Fax (92-21) 36931527, E-mail

For the year ended June 30, 2010

ATTOCK CEMENT PAKISTAN LIMITED

Cost Auditors Report


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Attock Cement Pakistan Limited Cost Audit Report, 2010

COST AUDITORS REPORT, 2009-2010


INDEX

Section 1 Page #1. Corporate Information2. The Company & Its Manufacturing Process

Section 2

Cost auditors Report 11. Capacity 22. Costing Accounting System 23. Production 2

4. Raw Material 35. Wages & Salaries 56. Stores & Spare Parts 67. Depreciation 68. Overheads 79. Royalty / Technical Aid Payment 910. Abnormal Non-Recurring Features 911. Cost of Production 912. Sales 1013. Profitability 1014 Cost Auditors Observation and Conclusions 1015. Reconciliations with Financial Statements 1216. Cost Statements 12

17. Miscellaneous 12

Schedules (1 to 3) 13-15

Statement of Production Capacity

Statement of Stock in Trade

Section 3Departmental Cost Statements Annexures1. Quarry I2. Transportation II3. Crushing III4. Stock Hall Storage IV

5. Raw Mill (For Mix / Slurry) V6. Kiln VI7. Grinding (Cement) VII8. Packing & Storage VIII9. Air Compressing IX10. Power Generated / Purchased and Consumed X11. Factory General XI12. Summary of Cost Report XII

Cost of Sales of Ground Slag


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01. CORPORATE INFORMATIONBoard of Directors

ChairmanDr. Ghaith R. Pharaon

Chief ExecutiveBabar Bashir Nawaz

DirectorsLaith G. PharaonWael G. PharaonShuaib A. Malik

Abdus SattarBabar Bashir NawazFakhrul Islam Baig

Alternate DirectorsIrfan Amanullah

Audit Committee of the Board

ChairmanAbdus Sattar

MembersShuaib A. Malik

Fakhrul Islam Baig

Company SecretaryIrfan Amanullah

Statutory AuditorsA. F. Ferguson & Co.

Chartered Accountants

Cost AuditorsSIDDIQI & COMPANY

Cost & Management Accountants

BankersFaysal Bank LimitedMCB Bank Limited

National Bank of PakistanBank Al-Falah Limited

Allied Bank LimitedBank Al-Habib

JS Bank LimitedNIB Bank Limited

United Bank LimitedMeezan Bank Limited

Barclays Bank PLC, Pakistan

Registered OfficeD-70, Block-4, Kehkashan-5

Clifton, Karachi-75600.Telephone# (92-21) 35309773-4, Fax # 35379775

UAN: (92-21) 111 17 17 17Email. [email protected]

Website: www.attockcement.com

FactoryHub Chowki, Lasbella, Baluchistan.


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02. THE COMPANY

&MANUFACTURING PROCESS

1. THE COMPANY

The Company was incorporated in Pakistan on October 14, 1981 as a public limitedCompany and is listed on Karachi Stock Exchange. Its main business activity ismanufacturing and sale of cement.

2. OPERATIONS

Basically the main objective of the Company is to manufacture and sell cement.

3. MANUFACTURING PROCESS

The Company is using the Dry Process Technology for manufacturing of cement. It ownsleased lime stone quarries. The process consists of the following departments:-

(i) Lime Stone Quarry / Transportation

(ii) Crushing

(iii) Raw Mill (Mix / Slurry)

(iv) Kiln

(v) Grinding (Cement Mill)

(vi) Packing & Storage

The major raw materials include:

(i) Shale / Overburden

(ii) Lime Stone

(iii) Gypsum

(iv) Slag

Packing Paper bags of 50 Kg. each are used in packing.

4. FACTORY LOCATION

The Companys cement manufacturing plant is located in Tehsil Hub, District Lasbella,Baluchistan, Pakistan.


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COST AUDITORS REPORT

We, SIDDIQI & COMPANY, Cost & Management Accountants having been appointed to

conduct an audit of cost accounts of ATTOCK CEMENT PAKISTAN LIMITED, have examined

the books of account and the statement prescribed under clause (e) of sub-section 230 of the

Companies Ordinance, 1984 and the other relevant record for the year ended June 30, 2010,

and report that:-

1. we have obtained all the information and explanations which to the best of our knowledge

and belief were necessary for the purpose of this audit.

2. in our opinion:

(a) proper cost accounting records as required by clause (e) of sub-section (1) of section

230 of the Companies Ordinance, 1984 (XLVII of 1984), and as required by these

rules, have been kept by the Company;

(b) proper returns, statements and schedules for the purpose of audit of cost accounts

relating to branches were not required as the Company has no branches in or

outside Pakistan.

(c) the said books and records give the information required by the rules in the manner

so required; and

3. in our opinion and, subject to best of our information:-

(a) the annexed statement of capacity utilization and stock-in-trade are in agreement

with the books of account of the Company and exhibit true and fair view of the

Companys affairs; and

(b) cost accounting records have been properly kept so as to give a true and fair view of

the cost of production, processing, manufacturing and marketing of the under

mentioned products of the Company, namely,

1. Ordinary Portland Cement (OPC)

2. Sulphate Resistance Cement (SRC)

3. Ground Slag

The matters contained in the ANNEXED Forms are part of this report.

SIDDIQI & COMPANYCost & Management Accountants

Karachi : 25 OCT 2010


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1. CAPACITY (Tonne)

(a) Clinker

Kiln-I (2,400 T/D x 300 days) 720,000 742,996 103

Kiln-II (3,300 T/D x 300 days) 990,000 963,303 97

1,710,000 1,706,299 100

(b) The company's main business activity is manufacturing and sale of cement.

2. COST ACCOUNTING SYSTEM

3. PRODUCTION

Qty. in Tonne

(a)

Clinker Tonne %

Line-1

Ordinary Portland Clinker 376,342 479,770 (103,428) (22)

Suplhate Resistance Clinker 366,654 270,738 95,916 35

742,996 750,508 (7,512) (1)

Line-2

Ordinary Potland Clinker 963,303 928,111 35,192 4

1,706,299 1,678,619 27,680 2

Cement

Ordinary Portland 1,424,913 1,436,446 (11,533) (1)

Sulphate Resistance 367,706 285,219 82,487 29

1,792,619 1,721,665 70,954 4

(b)

(c) There is no addition to the production capacity during the year under review.

2010 2009

Production

UtilizedCapacity

Y E A R S

% of InstalledCapacity

Increase/(Decrease)

Licensed / InstalledCapacity

Manufacturing of cement is a continuous process, therefore, the company uses process cost accountin

system as prescribed by SECP as per Cement Industry (Cost Accounting Records) Order, 1994.

The company is operating a fully online integrated costing system, which generates cost statement

relating to six stages / departments and allocates cost thereon.

The plant design facilitates production of the various types of cement as per production requirements

within the installed capacity limits.

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Attock Cement Pakistan Limited

4. RAW MATERIAL

(a) Major Raw Materials Consumed

ITEMS Quantity Value Cost per Quantity Value Cost per

(Tonne) Rs. in '000' Tonne (Tonne) Rs. in '000' Tonne

Limestone 1,179,863 257,548 218 1,074,310 190,805 178

Shale / Overburden 1,386,521 226,150 163 1,500,726 235,326 157

Iron Ore & Salica Sand 157,453 87,737 557 107,246 65,100 607

Gypsum 50,136 68,993 1,376 61,397 82,849 1,349

Slag

Ground Slag 30 31 1,033 4,205 4,679 1,113

640,459 578,759

2010 2009

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(b) Major Raw Materials consumption per unit of production compared with standard requirements.

Description Standard 2010 2009 2008

Tonne Tonne Tonne Tonne 2010 2009 2008

Limestone Clinker 0.240 0.523 0.525 0.529 118 119 12

Shale / Overburden Clinker 1.328 1.022 1.020 1.023 (23) (23) (2

Iron Ore / Baux. Iron Clinker 0.032 0.039 0.040 0.039 22 25 2

Salica Sand Clinker - 0.016 0.015 0.019 100 100 10

TOTAL Clinker 1.600 1.600 1.600 1.611 (0) (0)

Gypsum Cement 0.050 0.028 0.034 0.045 (44) (32)

Description Standard 2010 2009 2008

Tonne Tonne Tonne Tonne 2010 2009 2008

Limestone Clinker 0.240 0.412 0.424 0.419 72 77 7

Shale / Overburden Clinker 1.264 1.020 1.021 1.020 (19) (19) (1

Iron Ore Clinker 0.096 0.121 0.110 0.113 26 15 1

Salica Sand Clinker - 0.047 0.045 0.048 100 100 10

TOTAL Clinker 1.600 1.600 1.600 1.600 (0) (0) -

Gypsum Cement 0.050 0.027 0.040 0.043 (46) (20) (1

(c) Explanation of Variances

The variances from standard requirements are attributed to chemical contents of raw materials.

(d) Method of Accounting

Ordinary Portland Cement % Increase / (Decrease)

as compared to Standard

Sulphate Resistance Cement % Increase / (Decrease)

as compared to Standard

The company is maintaining raw material records using perpetual inventory system. The per unit cost for issue o

material is determined using weighted average basis.

Limestone and shale / overburden are extracted from leased mines.

Salica Sand, Iron ore, Bauxite, Gypsum and Slag are purchased from open market. The quantities and values ar

recorded in the store ledger and general ledger from stores receiving report.

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5. WAGES AND SALARIES

(a) Total wages and salaries paid for all categories of employees

2010 2009 2008

Rs. in '000' Rs. in '000' Rs. in '000' Base 2009 Base 2008

Direct labour cost on production 142,384 154,000 106,758 (8) 33

Indirect labour cost on production 332,234 359,333 244,673 (8) 36

474,618 513,333 351,431 (8) 35

Employees' cost on administration 100,575 114,926 79,779 (12) 26

Employees' cost on selling and distribution 35,165 32,725 20,959 7 68

Total employees cost 610,358 660,984 452,169 (8) 35

(b) Salaries and perquisites of Chief Executive,Directors and Executives

2010 2009

Rs. in `000' Rs. in `000'

Chief Chief

Executive Executive

Managerial remuneration 9,605 8,182 56,918 8,538 8,096 47,264

Housing Allowance 3,362 3,269 21,286 2,988 3,241 17,841

Utility Allowance 1,281 672 4,346 1,138 667 3,602

Bonus 3,795 3,850 21,900 2,779 3,490 15,923

Retirement benefits 1,377 697 9,345 1,087 550 6,879

Others 1,832 2,118 9,668 863 1,229 6,526

21,252 18,788 123,463 17,393 17,273 98,035

Number of person(s) 1 2 48 1 2 38

(c) Total man-days of direct labour Worked Available % Worked

300 days x 320 workers = 96,000 95,360 96,000 99%

298 days x 320 workers = 95,360

(d) Average number of production workers employed 2010 2009

320 270 19%

(e) Direct labour cost per tonne

Base 2009 Base 2008

Direct labour cost (Rs. in '000) 142,384 154,000 106,758 (8) 33

Prduction in tonne 1,792,619 1,721,665 1,364,511 4 31

Cost per tonne (Rs. / tonne) 79 89 78 (11) 2

2010

% Increase / (Decrease)



ExecutivesDirectorsDirectors

2009 2008

Executives

The Chief Executive, Executive Directors and certain executives are provided with free use of compan

maintained cars and are also provided with medical facilities in accordance with their entitlements.

A sum of Rs. 0.32 million (2009: Rs. 0.92 million) was paid to a non-executive Director in respect of advisor

services.

The aggregate amounts charged in the financial accounts for remuneration to the Chief Executive, Director

and Executives of the company are as follows :

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(f) Comments on Incentives Scheme

6. STORES AND SPARE PARTS

(a) Expenditure per unit of output 2010 2009

Stores & spares consumed (Rs.in '000') 225,521 263,656

Production in tonne 1,792,619 1,721,665

Cost per tonne (Rs./tonne) 126 153

(b) System of stores

(c) Proportion of closing inventory of stores representing items

which have not moved for over twenty four months.

7. DEPRECIATION

(a) Method of depreciation

(b) Basis of allocation of depreciation on common assets to the different departments.

Depreciation on common assets is allocated as under: (Rs. '000) % (Rs. '000) %

(i) Cost of Sales 261,760 96.660 463,580 97.710

(ii) Administrative Expenses 9,034 3.340 10,040 2.120

(iii) Distribution Cost - - 819 0.170

270,794 100.00 474,439 100.00

(c) Basis of charging depreciation to cost of products

The depreciation is allocated to cost of production on the value of assets employed.

(14)

4

(18)

2010

% of Increase / (Decrease

2009

These are valued at monthly weighted average cost less provision for slow moving and obsolete stores, sparesand loose tools. Items in transit are stated at cost.

All items of stores are properly coded and entered by designated staff members of the finance departmen

through network system, on daily basis.

These are stated at cost less accumulated depreciation / amortization and impairment losses (if any) excep

freehold land, capital work in progress and stores held for capital expenditures which are stated at cost

Depreciation is calculated using the straight line method on all assets in use to charge off their cost excluding

residual value, if not insignificant, over their estimated useful lives.

Depreciation on acquisition is charged from the month of addition whereas no depreciation is charged on the

month of disposal.

Maintenance and normal repairs are charged to income as and when incurred. Major renewals and

improvements are capitalized and the assets so replaced, if any, are retired.

Gains and losses on disposal of fixed assets are inlcuded in income currently.

Slow moving items amounting to Rs. 16.375 million which represents 2.47% (2009: 18.030 million: 2.92%) o

closing inventory.

Per tonne cost of stores and spares decreased due to efficient operations during the year with less plan

stoppages for repair and maintenance required by the plant as compared to the last year.

The company awards bonus based on the profitability of the company and performance of the employees.

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8. OVERHEADS

(a) Total amounts of the overheads2010 2009 2008

Rs. in '000' Rs. in '000' Rs. in '000'

(i) Factory 423,986 664,976 549,613

(ii) Administration 183,933 182,420 133,582

(iii) Selling & distribution 466,659 437,194 124,744

(iv) Financial 77,628 119,763 153,909

1,152,206 1,404,353 961,848

(i) Factory Overheads

2010 2009 2008 Based on Based on

Rs.in'000' Rs. in '000' Rs. in '000' 2009 2008

Repairs and maintenance 49,546 60,570 66,139 (18) (25

Vehicle running & maintenance 49,556 53,037 42,229 (7) 17

Travelling and entertainment 5,354 4,369 3,186 23 68

Depreciation 261,760 463,580 395,937 (44) (34

Insurance 28,201 34,594 22,196 (18) 27

Others 29,569 48,826 19,926 (39) 48

423,986 664,976 549,613 (36) (23

(ii) Administration Overheads


Rs.in'000' Rs. in '000' Rs. in '000' 2009 2008

Salaries, wages and benefits 100,575 114,926 79,779 (12) 26

Utilities 3,561 3,676 2,654 (3) 34

Repairs and maintenance 3,370 5,621 7,910 (40) (57

Depreciation 9,034 10,040 4,655 (10) 94

Vehicle running & maintenance 4,908 6,293 5,446 (22) (10

Travelling and entertainment 6,796 5,836 4,216 16 61

Communication 4,275 3,402 2,565 26 67

Printing and stationery 3,039 3,004 3,318 1 (8

Auditor's remuneration 3,625 1,600 1,455 127 149

Legal and professional charges 14,582 5,856 5,608 149 160

Advertising 1,504 1,053 2,330 43 (35

Rent, rates and taxes 7,053 6,758 7,158 4 (1

Donations 8,914 6,856 204 30 4,270

Insurance 8,968 3,601 2,696 149 233

Training 239 195 407 23 (41

Subscription 610 1,376 1,265 (56) (52

Others 2,880 2,327 1,916 24 50

183,933 182,420 133,582 1 38

Overall factory overheads decreased mainly due to decrease in depreciation by changing the depreciatio

method and partly decline in vehicle running, repair & maintenance and other overheads as compared to las

year.

There is no significant variance as comapred to last year.



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(iii) Selling and Distribution Overheads


Rs.in'000' Rs. in '000' Rs. in '000' 2009 2008

Salaries, wages and benefits 35,165 32,725 20,959 7 68

Depreciation - 819 597 (100) (100

PSI marking fee 4,831 27,275 3,984 (82) 21

Carriage outward 11,722 16,376 6,285 (28) 87

Advertisement and sales promotion 650 1,364 2,083 (52) (69

Travelling and entertainment 3,629 1,783 357 104 917

Export expenses 363,659 311,071 78,947 17 361

Commission on export sales 45,465 43,548 9,899 4 100

Miscellaneous expenses 1,538 2,233 1,633 (31) (6

466,659 437,194 124,744 7 274

(iv) Financial Charges


Rs.in'000' Rs. in '000' Rs. in '000' 2009 2008

Markup on long term murabaha 66,005 94,016 109,468 (30) (40

Markup on short term loan - - 10,270 - (100

Markup on running finance - - 3,557 - (100

Finance lease charges - - 44 - (100

Bank charges and commission 11,156 14,596 6,207 (24) 80

Exchange loss - 10,957 24,312 (100) 100

Interest on workers' profits participation fund 467 194 51 141 816

77,628 119,763 153,909 (35) (50

The decrease in financial cost was due to repayment of long term murabaha.

(b) Reasons for any significant variances in the overheads

Reasons have already been given against items where ever necessary.

(c) Basis of allocation of overheads

The allocation was made on activity based on %age basis.


Selling & distribution expenses increased due to increase in export expenses.


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(d) Cost of Packing

Qty. in Tonne

OPC+SRC

Packed cement

Bulk cementTotal

Rs. in '000' Rupees/Ton Rs. in '000' Rupees/Ton Rupees/Ton %

Packing material 552,724 322.20 514,606 335.34 (13) (4

Power 16,552 9.16 12,651 7.36 2 24

Salaries & wages 7,561 4.18 8,177 4.76 (1) (12

Stores / spares, repair & maint. 15,358 8.50 17,242 10.03 (2) (15

Insurance 565 0.31 692 0.40 (0) (22

Depreciation 5,280 2.92 9,351 5.44 (3) (46

Other administrative overheads 44,341 24.54 49,844 28.99 (4) (15

642,382 371.82 612,563 392.32 (21) (5

9. ROYALTY / TECHNICAL AID PAYMENTS

Production Amount Rupees / Production Amount Rupees /

in Tonne Rs. In '000 Tonne in Tonne Rs. In '000 Tonne

Limestone &

Shale/Overburden 2,513,087 146,078 58.13 2,512,273 75,255 29.95

10. ABNORMAL NON-RECURRING FEATURES

(a) Features affecting production

= N O N E =

(b) Special expenses

= N O N E =

11. COST OF PRODUCTION

(As per Schedule-1 attached)

Increase /

Qty. in Rs. in Rs. Qty. in Rs. in Rs. (Decrease)

Tonne 000 Per Ton Tonne 000 Per Ton % Rs. P/TonCement

OPC 1,424,913 4,453,165 3,125 1,436,446 4,807,338 3,347 (6.62

SRC 367,706 1,189,238 3,234 285,219 964,230 3,381 (4.33

Ground Slag 30 48 1,600 3,629 6,776 1,867 (14.31

Sub-total 5,642,451 5,778,344

Clinker

OPC 5,311 12,506 2,355 17,990 46,219 2,569 (8.34

TOTAL 5,654,957 5,824,563

Reasons for variances

Cost per tonne decreased mainly due to decrease in salaries & wages, depreciation and fuel cost.

1,715,452

91,6251,807,077

1,534,581

184,5811,719,162

2010 2009

2010

Increase / (Decrease)

2009

2010 2009

2 0 1 0 2 0 0 9

Royalty and excise duty is paid to the provincial government on the quantity of limestone, shale / overburde

extracted and transported to mill from quarries at statutory rates.

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12. SALES


Increase /Qty. in Rs. in Rs. Qty. in Rs. in Rs. (Decrease)

Tonne 000 Per Ton Tonne 000 Per Ton % P/Ton

LOCAL

OPC 1,148,716 4,803,253 4,181 1,079,181 5,191,500 4,811 (13.08

SRC 153,820 673,411 4,378 170,831 854,715 5,003 (12.50

Ground Slag 240 616 2,567 2,205 8,399 3,809 (32.62

Sub-total 5,477,280 6,054,614

EXPORT

OPC 284,956 1,182,976 4,151 358,290 1,791,724 5,001 (16.98

SRC 219,585 993,090 4,523 110,860 568,918 5,132 (11.87

Ground Slag - - - 2,000 8,840 4,420 (100.00

Clinker (OPC) 5,311 14,787 2,784 17,990 85,975 4,779 (41.74

2,190,853 2,455,457

TOTAL 7,668,133 8,510,071

Export sales were mainly made to Middle East Asia, Africa and other countries.

13. PROFITABILITY


Increase /Qty. in Rs. in Rs. Qty. in Rs. in Rs. (Decrease)

Tonne 000 Per Ton Tonne 000 Per Ton % P/Ton

LOCAL

OPC 1,148,716 1,054,133 918 1,079,181 1,333,642 1,236 (25.74

SRC 153,820 150,335 977 170,831 245,751 1,439 (32.06

Ground Slag 240 181 753 2,205 3,206 1,454 (48.21

Sub-total 1,204,649 1,582,599

EXPORT

OPC 284,956 77,293 271 358,290 286,475 800 (66.08

SRC 219,585 108,486 494 110,860 91,484 825 (40.13

Ground Slag - - - 2,000 4,079 2,040 (100.00

Clinker (OPC) 5,311 (2,111) (397) 17,990 24,088 1,339 (129.68

183,668 406,127

TOTAL 1,388,317 1,988,726

The decrease in net profit is due to the following reasons:

Decrease in selling price.

Increase in royalty on limestone & shale overburden which affected the cost of production.

Inflationery trend in electricity cost.

2 0 1 0 2 0 0 9

2 0 1 0 2 0 0 9

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14. COST AUDITORS' OBSERVATIONS AND CONCLUSIONS

(a) Matters which appear to him to be clearly wrong in principle or apparently unjustifiable.

(b) Cases where the company funds have been used in a negligent or inefficient manner.

= N O N E =

(c) Factors which could have been controlled but have not been done resulting in increase in the cost

of production.

= N O N E =

(d) (i) The Adequacy or otherwise of Budgetary Control System, if any, in vogue in the company.

(ii) The scope and performance of Internal Audit, if any.

(e) Suggestion for improvements in performance.

(i) rectification of general imbalance in production facilities

Apparently, there is no general imbalance in production facilities.

(ii) fuller utilization of installed capacity

(iii) Comments on areas offering scope for

(a) Cost reduction

(b) Increased productivity

(c) Key limiting factors causing production bottle necks.

= N O N E =

The plant has already utilized maximum capacity shown by Kiln # I. It has achieved 103% capacity

utilization where as Kiln # II achieved 97% of capacity utilization which has yielded good production

results.

Company is working on various projects to reduce its cost of production prominent among them i

waste heat recurring system.

The company prepares its budget on annual basis. A monthly report comparing actual results with budget i

generated alongwith the reasons for major variances. On the basis of such variances corrective measure

are initiated, implemented and followed up.

The Board has outsourced the internal audit function to M/s. Ernst & Young Ford Rhodes Sidat Hyder &

Co., Chartered Accountants who are involved in the internal audit function on a full time basis.

No such matters have so far come to our notice during the year under review.

The company has already expanded its clinker production in 2005-06 from 2400/TPD to 5700/TP

and as a result thereof, the fixed cost per tonne decreased considerably.

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(d) Improved inevntory policies

Present inventory policies are satisfactory.

(e) Energy conservancy

(iv) State of technology

The company uses 'Dry Process' which is the latest technology in cement production.

(v) Plant

The plant was new when installed.

15. RECONCILIATIONS WITH FINANCIAL STATEMENTS

16. COST STATEMENTS

17. MISCELLANEOUS

Figures have been rounded off to nearest thousand and rupee one. Previous year's figures have been re-arrange

and regrouped where necessary to facilitate comparison.

SIDDIQI & COMPANY

Cost & Management Accountants

Karachi : 25 OCT 2010

The cost accounts are reconciled with audited financial accounts for the year ended June 30, 2010 as pe

reconciliation statement annexed herewith.

Copies of all cost statements on the formats prescribed by Securities and Exchange Commission of Pakista

under clause (e) of sub-section (1) of section 230 of the Companies Ordinance, 1984, duly authenticated by th

chief executive and Chief Financial Officer of the company, and verified by us are appended to the report.

The company has already switched over to `COAL' as one of the cheapest source of energy.

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Schedule-

a) Quantitative Data Ground

OPC SRC Slag

Production (Tonne) 1,424,913 367,706 30 5,311 1,797,96

b) Cost Elements Ground

OPC SRC Slag

Cost of sales 4,495,685 1,210,446 408 12,506 5,719,04

Transferred to raw material inventory (7,058) (1,822) - - (8,88

4,488,627 1,208,624 408 12,506 5,710,16

Inventory adjustments (finished goods) (35,462) (19,386) (360) - (55,20

Cost of goods manufactured 4,453,165 1,189,238 48 12,506 5,654,95

a) Quantitative Data Ground

OPC SRC Slag

Production (Tonne) 1,436,446 285,219 3,629 17,990 1,743,28

b) Cost Elements Ground

OPC SRC Slag

Cost of sales 4,804,823 951,163 7,694 46,219 5,809,89

Transferred to raw material inventory (7,342) (1,458) - - (8,80

4,797,481 949,705 7,694 46,219 5,801,09

Inventory adjustments (finished goods) 9,857 14,525 (918) - 23,46

Cost of goods manufactured 4,807,338 964,230 6,776 46,219 5,824,56

TOTAL

Y E A R : 2 0 0 9

CEMENTClinker

CEMENTClinker

Quantity in Tonne

TOTAL

Rupees in '000

COST OF PRODUCTION

Rupees in '000

CEMENTClinker TOTAL

Y E A R : 2 0 1 0

Quantity in Tonne

CEMENTClinker TOTAL

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Schedule-

Ground Ground

a) Quantitative Data OPC SRC Slag OPC SRC Slag

Quantity Sold 1,148,716 153,820 240 284,956 219,585 - 5,311 1,812,6

b) Sales Realization Value Ground GroundOPC SRC Slag OPC SRC Slag

Gross Sales 6,551,006 911,556 720 1,182,976 993,090 - 14,787 9,654,1

Less:

Sales Tax 897,027 124,416 98 - - - - 1,021,5

Special Excise Duty 48,096 6,734 6 - - - - 54,8

Federal Excise Duty 802,630 106,995 - - - - - 909,6

1,747,753 238,145 104 - - - - 1,986,0

Net Sales Realization 4,803,253 673,411 616 1,182,976 993,090 - 14,787 7,668,1

Ground Ground


Quantity Sold 1,079,181 170,831 2,205 358,290 110,860 2,000 17,990 1,741,3

b) Sales Realization Value Ground Ground

OPC SRC Slag OPC SRC Slag

Gross Sales 7,175,737 1,174,859 9,829 1,791,724 568,918 8,840 85,975 10,815,8

Less:

Sales Tax 976,433 160,236 1,344 - - - - 1,138,0

Special Excise Duty 51,526 8,538 86 - - - - 60,1

Federal Excise Duty 956,278 151,370 - - - - - 1,107,6

1,984,237 320,144 1,430 - - - - 2,305,8

Net Sales Realization 5,191,500 854,715 8,399 1,791,724 568,918 8,840 85,975 8,510,0

LOCAL SALES EXPORT SALES

TOTALCEMENT CEMENTClinker

Y E A R : 2 0 0 9

Quantity in Tonne

NET SALES REALIZATION

CEMENT

Y E A R : 2 0 1 0

CEMENT Clinker

Rupees in '000


TOTAL

Quantity in Tonne



Rupees in '000



[ 14 ]


19/49


Schedule-3

Ground Ground


Quantity Sold 1,148,716 153,820 240 284,956 219,585 - 5,311 1,812,628

63.37 8.49 0.01 15.72 12.11 - 0.29

b) Product Wise Profit Ground Ground


Net Sales 4,803,253 673,411 616 1,182,976 993,090 - 14,787 7,668,133

Less: Cost of Sales 3,618,577 505,596 408 870,051 703,028 - 12,506 5,710,166Gross Profit 1,184,676 167,815 208 312,925 290,062 - 2,281 1,957,967

Less:

Selling & distribution 65,274 8,741 14 16,192 12,478 - 302 103,000

Administrative exp. 116,564 15,609 24 28,915 22,282 - 539 183,933

Financial charges 49,195 6,588 10 12,204 9,404 - 227 77,628

Export expenses - - - 203,249 156,622 - 3,788 363,659

Other charges 65,255 8,738 14 16,187 12,474 - 302 102,969

Other income (165,745) (22,194) (35) (41,116) (31,683) - (766) (261,539)

130,543 17,480 27 235,632 181,576 - 4,392 569,650

Profit before taxation 1,054,133 150,335 181 77,293 108,486 - (2,111) 1,388,317

Ground Ground


Quantity Sold 1,079,181 170,831 2,205 358,290 110,860 2,000 17,990 1,741,357

61.97 9.81 0.13 20.58 6.37 0.11 1.03

b) Product Wise Profit Ground Ground


Net Sales 5,191,500 854,715 8,399 1,791,724 568,918 8,840 85,975 8,510,071

Less: Cost of Sales 3,604,278 568,823 4,675 1,193,203 380,882 3,019 46,219 5,801,099

Gross Profit 1,587,222 285,892 3,724 598,521 188,036 5,821 39,756 2,708,972

Less:

Selling & distribution 78,163 12,373 160 25,950 8,029 145 1,303 126,123

Administrative exp. 113,052 17,896 231 37,534 11,613 210 1,885 182,420

Financial charges 74,221 11,749 152 24,642 7,624 138 1,237 119,763

Export expenses - - - 227,856 70,502 1,272 11,441 311,071

Other charges 91,350 14,460 187 30,328 9,384 169 1,523 147,402

Other income (103,206) (16,337) (211) (34,265) (10,602) (191) (1,720) (166,533)

253,580 40,141 518 312,045 96,551 1,742 15,668 720,246

Profit before taxation 1,333,642 245,751 3,206 286,475 91,484 4,079 24,088 1,988,726

Rupees in '000



TOTAL

Quantity in Tonne



Y E A R : 2 0 0 9

Quantity in Tonne

PROFITABILITY

CEMENT

Y E A R : 2 0 1 0

CEMENTClinker

Rupees in '000




[ 15 ]


20/49


2010

Rs. in '000

Cost of sales

(as per cost accounts) 5,710,166

Cost of sales

(as per financial accounts) 5,710,166

Reconciliation of Cost of Sales with Audited Financial Accounts

For the year ended June 30, 2010

Cost accounts are in agreement with audited financial accounts of the company for the year ended June 30,

2010 as shown below:

[ 16 ]


21/49

% of Installed % of Installed

Capacity Capacity

Kiln - I 7,200 7,156 99.39 7,375 102.43

Kiln - II 7,200 7,511 104.32 7,462 103.64

Total 14,667 101.86 14,837 103.03

Cement Mill - I 7,200 6,341 88.07 6,097 84.68

Cement Mill - II 7,200 6,018 83.58 5,172 71.83

Cement Mill - III 7,200 6,061 84.19 5,004 69.50

Cement Mill - IV 7,200 5,958 82.75 6,041 83.90

Total 24,378 84.65 22,314 77.48

% of Installed % of InstalledCapacity Capacity

Kiln - I 720,000 742,996 103.19 750,508 104.24

Kiln - II 990,000 963,303 97.30 928,111 93.75

Total 1,706,299 99.78 1,678,619 98.16

Cement Mill - I 792,000 530,003 66.92 534,625 67.50

Cement Mill - II 324,000 201,380 62.15 174,216 53.77

Cement Mill - III 720,000 524,202 72.81 457,489 63.54

Cement Mill - IV 720,000 537,034 74.59 555,335 77.13

Total 1,792,619 70.13 1,721,665 67.36

Chief Executive Chief Financial Officer

Karachi: 25 OCT 2010

1,710,000

2,556,000

2010 2009

Utilized Capacity Utilized CapacityDepartments

2010Licensed /

Installed

Capacity

Licensed /

Installed

Capacity

Departments

14,400

28,800

Production Units (Tonne)

Machine Hours

Utilized CapacityUtilized Capacity

2009

ATTOCK CEMENT PAKISTAN LIMITE

STATEMENT OF CAPACITY UTILIZATION

under Rule 4(1)(a) of Companies (Audit of Cost Accounts) Rule 1998

As at June 30, 2010 as compared with June 30, 2009


22/49

(Rupees in '000)

Quantity Cost in Quantity Cost in

( MT ) Rupees ( MT ) Rupees

Stock of Raw and Packing Material :

Shale & Overburden 754 Tonne 148 2,758 Tonne 505

Lime stone 8,021 Tonne 2,167 59,314 Tonne 10,689

Iron ore / Bauxitic Iron 30,465 Tonne 22,340 15,578 Tonne 9,704

Gypsum 29,600 Tonne 34,584 40,885 Tonne 60,860

Slag 8,955 Tonne 9,114 8,985 Tonne 9,144

Salica Sand 2,893 Tonne 970 3,208 Tonne 1,285

Packing bags 1,593,273 Nos. 29,627 2,885,495 Nos. 51,787

Sub Total : - 98,950 143,974

Stock of Work-in-Process :

Stock Pile Formation 7,663 Tonne 2,031 12,807 Tonne 3,325

Raw Meal 14,949 Tonne 6,947 16,047 Tonne 6,624

Clinker :

OPC 73,675 Tonne 173,040 124,083 Tonne 337,405

SRC 16,752 Tonne 39,121 7,839 Tonne 21,316

90,427 131,922

Sub Total : - 113,039 221,139 160,776 368,670

Stock of Finished Products :

Ordinary Portland Cement 14,464 Tonne 38,373 23,223 Tonne 73,835

Sulphate Resisting Cement 2,779 Tonne 7,707 8,478 Tonne 27,094Sub Total : - 17,243 46,080 31,701 100,929

Ground Slag 0.46 Tonne 1 211 Tonne 361

Grand Total : - 366,170 613,934

REMARKS:

01.

02.


Karachi: 25 OCT 2010

20092010


STATEMENT OF STOCK-IN-TRADEunder Rule 4(1)(b) of Companies (Audit of Cost Accounts) Rule 1998

As at June 30, 2010 as compared with June 30, 2009

In terms of clause 3(2) of Companies (Audit of Cost Accounts) Rules, 1998 (SRO: 846/(1)/98) dt. July 24,

1998, the Cost Auditors were appointed by the directors with the prior approval of Securities & Exchange

Commission of Pakistan within sixty days of the close of financial year of the company.

In view of the above mentioned constrains appointing the Cost Auditors after the close of the financial

year; the cost auditors were not present on the date of physical stock taking as of the close of the financial

year. Under these circumstances, the physical stock taking carried out and financial accounts as certified

by the statutory auditors as of June 30, 2010 were relied upon for the purpose of the above mentioned

statement of stock in trade [under clause (4)(1)(b) of Companies (Audit of Cost Accounts) Rules, 1998].


23/49

Annexure-I

A. Quantitative Data

2010 2009

Tonne Tonne

Opening stock at quarry 62,073 124,836 (62,763)

Quantity quarried

Limestone 1,128,570 1,016,765 111,805

Shale / Overburden 1,384,517 1,495,508 (110,991)

2,513,087 2,512,273 814

Total available stock 2,575,160 2,637,109 (61,949)

Quantity transported to crusher

Limestone 1,179,863 1,074,310 105,553

Shale / Overburden 1,386,521 1,500,726 (114,205)

2,566,384 2,575,036 (8,652)

Closing stock at quarry 8,776 62,073 (53,297)

B. Cost Statement

Rs. in '000' Rs.Per Tonne Rs. in '000' Rs.Per Tonne

Direct Departmental Costs:

Explosives (if any) 31,125 12.39 25,482 10.14

Royalty and duties 146,078 58.13 75,255 29.95

Labour cost 27,652 11.00 29,908 11.90

Salaries 6,947 2.76 7,514 2.99

Employee's other benefits 8,774 3.49 9,490 3.78

Contract Labour 4,279 1.70 4,628 1.84

Insurance 1,977 0.79 2,422 0.96

Stores & spares 9,482 3.77 4,223 1.68

Repairs and maintenance 2,478 0.99 2,781 1.11

Diesel-oil 1,313 0.52 3,726 1.48

Depreciation 10,593 4.22 18,763 7.47

250,698 99.76 184,192 73.32

Indirect Departmental Costs :

Compressed Air (Annexure IX) - - - -

Power (Annexure X) - - - -

Other Factory Expenses (Annexure XI) 31,811 12.66 35,759 14.23

31,811 12.66 35,759 14.23

Total cost of the period 282,509 112.42 219,951 87.55

Add : Cost of opening stock 11,194 - 19,994 -

Total cost of available stock : 293,703 114.05 239,945 90.99

C. Cost Distribution

Cost transferred to crusher. 291,388 113.54 228,751 88.83

Cost of closing stock. 2,315 - 11,194 -

Total cost accounted for: 293,703 114.05 239,945 90.99



Cost

Sub-Total :

Sub-Total :

Tonne

2010 2009

NAME OF DEPARTMENT - QUARRY

FOR THE YEAR ENDED JUNE 30, 2010

Increase/(Decrease)


24/49

Annexure-II


Quantity transported from quarry :

(i) Shale/Overburden 1,386,521 1,500,726 (114,205)

(ii) Lime Stone 1,179,863 1,074,310 105,553

(iii) Gypsum

Total: 2,566,384 2,575,036 (8,652)

B. Cost Statement

Cost Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonne

Direct Departmental Costs :

(a) Outside contract costs

of transportation :

(i) Shale/Overburden 85,540 61.69 102,010 67.97 (16,470) (6.28)

(ii) Lime Stone 106,771 90.49 95,370 88.77 11,401 1.72

(iii) Gypsum - - - - - -

Sub-Total (a) : 192,311 74.93 197,380 76.65 (5,069) (1.72)

(b) Own transportation costs :

Duties (if any) - - - - - -

Labour costs - - - - - -

Salaries - - - - - -

Employee's other benefits - - - - - -

Indirect materials - - - - - -

Insurance - - - - - -

Repairs and maintenance - - - - - -

Fuel Oil - - - - - -

Greases - - - - - -

Gas - - - - - -

Tyres and tubes - - - - - -

Depreciation - - - - - -

Other Overheads - - - - - -

Sub-Total (b) : - - - - - -

Indirect Departmental Costs : - - - - - -

Compressed Air (Annexure IX) - - - - - -

Power (Annexure X) - - - - - -

Other Factory Expenses - - - - - -

(Annexure XI) - - - - - -

Sub-Total : - - - - - -Total own transportation cost:

(c) Total transportation cost 192,311 74.93 197,380 76.65 (5,069) (1.72)

C. Cost Distribution.

Apportioned to :

(i) Shale/Overburden 85,540 61.69 102,010 67.97 (16,470) (6.28)

(ii) Lime Stone 106,771 90.49 95,370 88.77 11,401 1.72

(iii) Gypsum - - - - - -

Total : 192,311 74.93 197,380 76.65 (5,069) (1.72)




DEPARTMENTAL COST STATEMENT

NAME OF DEPARTMENT - TRANSPORTATION

2010 2009 Increase/(Decrease)

Increase/(Decrease)20092010

Tonne Tonne Tonne


25/49

Annexure-III


2010 2009 2010 2009 2010 2009

Opening Stock (uncrushed material). - - - - - -

Add : Received from quarry 1,386,521 1,500,726 1,179,863 1,074,310 2,566,384 2,575,036

Total available for crushing : 1,386,521 1,500,726 1,179,863 1,074,310 2,566,384 2,575,036

Less : Closing Stock (uncrushed - - - - - -

material).

Crushed during the period 1,386,521 1,500,726 1,179,863 1,074,310 2,566,384 2,575,036

Add : Opening Stock (Crushed material). - - - - 12,807 19,009

Total Crushed Material Available : 1,386,521 1,500,726 1,179,863 1,074,310 2,579,191 2,594,045

Less : Closing Stock (Crushed material). - - - - 7,663 12,807

Stock Reconciliation :

Transferred to raw mill. - - - - 2,571,528 2,581,238

Stock Adjustment. - - - - - -

Total : - - - - 2,571,528 2,581,238

B. Cost Statement

Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonne


Labour cost 1,895 0.74 2,050 0.80 (155) (0.06)

Salaries 3,815 1.49 4,126 1.60 (311) (0.12)

Employee's other benefits 2,184 0.85 2,361 0.92 (177) (0.07)

Contract Labour - - - - - -

Stores & spares 25,905 10.09 19,078 7.41 6,827 2.69

Repair and maintenance 4,459 1.74 5,006 1.94 (547) (0.21)

Insurance 283 0.11 346 0.13 (63) (0.02)

Depreciation 8,285 3.23 14,675 5.70 (6,390) (2.47)Sub-Total (a) : 46,826 18.25 47,642 18.50 (816) (0.26)


Compressed Air (Annexure IX) - - - - - -

Power (Annexure X) 29,187 11.37 22,309 8.66 6,878 2.71

Other Factory Expenses 36,813 14.34 41,380 16.07 (4,567) (1.73)

(Annexure XI)

Sub-Total (b) : 66,000 25.72 63,689 24.73 2,311 0.98

Total Cost(a+b) : 112,826 43.96 111,331 43.23 1,495 0.73




NAME OF DEPARTMENT - CRUSHING

Total (Tonne)Shale/Overb. - Tonne Lime Stone -Tonne



26/49

Cont'd Annexure-III


(On time or other appropriate basis)


Shale/Overburden - - - - - -

Lime Stone - - - - - -

Gypsum - - - - - -

D. Cost Transferred and Cost of

Closing Stock Cost Summary


(a) Opening Stock (Uncrushed) - - - - - -

(b) Cost received 291,388 113.54 228,751 88.83 62,637 24.71

(during the year) - quarry

Cost received 192,311 74.93 197,380 76.65 (5,069) (1.72)

(during the year) - transport

(c) Total Cost for uncrushed materials

(a+b) 483,699 188.47 426,131 165.49 57,568 22.99

(d) Cost applicable for closing stock

(uncrushed) - - - - - -

(e) Cost applicable for crushed material

(c-d) 483,699 188.47 426,131 165.49 57,568 22.99

(f) Cost of crushing process

(from above) 112,826 43.96 111,331 43.23 1,495 0.73

(g) Opening stock (crushed material) 3,325 - 4,391 231.00 (1,066) -

(h) Total cost applicable to crushed 599,850 232.57 541,854 208.88 57,996 23.69

material (e + f + g)

(j) Closing stock (crushed material) 2,031 - 3,325 259.62 (1,294) -

(k) Cost transferred to Raw mill (h-j) 597,819 232.48 538,529 208.63 59,290 23.84


Attock Cement Pakistan Limited

2010 2009

Increase/(Decrease)

Increase/(Decrease)

2010 2009


27/49

Annexure-IV


For the year Last year For the year Last year For the year Last year

tonne tonne tonne tonne tonne tonne

Opening Stock.

Received from crusher.

Purchased.

Total

Issued to Mix/Slurry.

Stock Adjustment.

Closing Stock.

B. Cost Statement

Rs. 000 per tonne Rs. 000 per tonne

Labour Costs :

Salaries.

Employees' other benefits.

Indirect materials.

Repairs and maintenance.

Insurance.

Fuel-Oil.

Gas

Depreciation

Other Overheads

Sub-Total (a) :


Compressed Air (Annexure IX).

Power (Annexure X)

Other Expenses (Annexure XI).

Sub-Total (b) :

Total Cost (a+b) :

C: Cost Distribution

Quantity issued to Cost of Stock Hall Cost of Applicable to

Raw Mill Applicable to issues Closing Stock

(tonnes) ----------------------------------- -----------------------------------

Rs. in '000 Rs. / Tonne Rs. in '000 Rs. / Tonne

Shale/Overburden

Lime Stone. -

Gypsum.

Total.

D. Cost Summary (Upto Stock Hall Stage)

Cost Transferred and Cost of closing Stock:

Rs. in '000 Rs. / Tonne Rs. in '000 Rs. / Tonne Rs. in '000 Rs. / Tonne

Opening Stock.

Add : Received from Crusher/

purchases.

Stock Hall

Cost.

Total :

Less: Cost of closing stock.

Cost applicable to quantities

issued to Raw Mill.




NAME OF DEPARTMENT - STOCK HALL STORAGE/ISSUAGE OF RAW MATERIAL


Gypsum

GypsumShale/Overburden Lime Stone

Shale/Overburden Lime Stone

For the year Last year


28/49

Annexure-V


Tonne Tonne Tonne2010 2009 2010 2009 2010 2009

Opening Stock. - - - - 16,047 13,353

Received from Crushing. 1,328,708 1,577,137 1,242,819 1,004,101 2,571,528 2,581,238

Add: Iron ore - - - - 92,464 86,484

Bauxitic Iron/Slica sand - - - - 64,990 20,762

Total: 1,328,708 1,577,137 1,242,819 1,004,101 2,728,981 2,688,484

Issued for Mix/Slurry. - - - - 2,745,028 2,701,837

Total Raw Meal Produced. - - - - 2,745,028 2,701,837

Mix/Slurry transferred to clinkering. - - - - 2,730,078 2,685,790

Closing Stock. - - - - 14,950 16,047

B. Cost Statement


Direct Material :

(1) Opening Stock - - - - - -

(2) Received from crushing 597,819 219.06 538,529 200.31 59,290 18.75

(3) Total. 597,819 219.06 538,529 200.31 59,290 18.75

(4) Closing Stock - - - - - -

Cost of raw materials processed (3)-(4) 597,819 219.06 538,529 200.31 59,290 18.75

Direct Departmental Costs:

Diect material 87,737 32.15 65,100 24.21 22,637 7.94Labour 4,124 1.51 4,460 1.66 (336) (0.15)Salaries 3,315 1.21 3,585 1.33 (270) (0.12)Employee's other benefit 3,209 1.18 3,471 1.29 (262) (0.12)Contract labou - - - - - -Repairs and maintenac 10,899 3.99 12,236 4.55 (1,337) (0.56)

Stores & spares 75,562 27.69 55,644 20.70 19,918 6.99Linning plat 616 0.23 7,335 2.73 (6,719) (2.50)Grinding medi 279 0.10 3,132 1.16 (2,853) (1.06)Water 704 0.26 748 0.28 (44) (0.02)Dereciation 36,960 13.54 65,456 24.35 (28,496) (10.80)Insurance 3,955 1.45 4,844 1.80 (889) (0.35)

Sub-Total (a) : 825,179 302.38 764,539 284.38 60,640 18.00

Indirect Departmental Costs : Compressed Air (Annexure IX - - - - - -Power (Annexure X 204,489 74.93 156,292 58.13 48,197 16.80Other Factory Expenses 73,543 26.95 82,670 30.75 (9,127) (3.80)

(Annexure XI)

Sub-Total (b) : 278,032 101.88 238,962 88.88 39,070 13.00

Total Cost (a+b) : 1,103,211 404.26 1,003,501 373.26 99,710 31.00

Cost of opening stock 6,624 - 4,982 - 1,642 -Total cost of slurry available 1,109,835 404.31 1,008,483 373.26 101,352 31.05


Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonneTransferred to Kiln 1,102,888 403.98 1,001,859 373.02 101,029 30.95Closing stock of mix/slurr 6,947 - 6,624 - 323 -

Total : 1,109,835 404.31 1,008,483 373.26 101,352 31.05




NAME OF DEPARTMENT - RAW MILL (FOR MIX/SLURRY)


Mix/Slurry

2010 2009

2010 2009

Shale/Overburden Lime Stone

Increase/(Decrease)

Increase/(Decrease)


29/49

Annexure-VI

A. Quantitative Data - Combined (OPC + SRC)

2010 2009

Tonne Tonne

Opening Stock. - - -

Quantity received from Raw Mill. 2,730,078 2,685,791 44,287

Total : 2,730,078 2,685,791 44,287

Quantity fed into (the) Kiln. 2,730,078 2,685,791 44,287

Stock Adjustment - Burning loss. 1,023,779 1,007,171 16,608

Closing Stock. - - -

Clinker Produced. 1,706,299 1,678,619 27,680

Clinker purchased - 37,695 (37,695)

Opening Stock of Clinker. 131,922 93,866 38,056

Total available stock : 1,838,221 1,810,180 28,041

Clinker transferred to Grinding. 1,742,483 1,660,268 82,215

Clinker sold (Local) - - -

Clinker sold (Export) 5,311 17,990 (12,679)

Total clinker sold 5,311 17,990 (12,679)

Closing Stock of Clinker. 90,427 131,922 (41,495)

B: Cost Statement - Combined (OPC + SRC)

Rs. in '000' Rs.perTonne Rs. in '000' Rs.perTonne

Cost received from Raw Mill :

(1) Opening Stock. - - - -

(2) Received during the year. 1,102,888 646.36 1,001,859 596.84

(3) Total 1,102,888 646.36 1,001,859 596.84

(4) Closing Stock. - - - -

Cost to be charged to the process (3) (4). 1,102,888 646.36 1,001,859 596.84


Local Clinker Purchase - - 111,230 66.26

Clinker handling charges 17,132 10.04 18,734 11.16

Labour 4,772 2.80 5,161 3.07

Salaries 32,710 19.17 35,379 21.08

Employees' other benefits 7,815 4.58 8,453 5.04

Contract labour 7,971 4.67 8,621 5.14

Linning plate 411 0.24 3,667 2.18

Bricks 36,936 21.65 14,350 8.55

Coal / Gas / Oil 1,906,268 1,117.19 2,382,407 1,419.27

Water 7,032 4.12 7,482 4.46


Stores & spares 32,149 18.84 36,525 21.76

Depreciation 113,520 66.53 201,045 119.77

Insurance 12,099 7.09 14,879 8.86

Sub-Total (a) : 3,291,611 1,929.09 3,860,916 2,300.06



NAME OF DEPARTMENT - KILN


Increase/(Decrease)

Tonne

2010 2009


30/49

Cont'd Annexure-VI



Power (Annexure X) 642,477 376.53 491,049 292.53


Sub Total (b) : 737,107 431.99 597,423 355.90

Total Cost (a+b) : 4,028,718 2,361.09 4,458,339 2,655.97

Opening Stock - Clinker 358,721 - 205,789 -

Total cost of clinker available 4,387,439 2,386.79 4,664,128 2,576.61

Less : Cost of clinker sold (if any) 12,506 2,354.83 46,219 2,569.15

Net Cost. 4,374,933 2,386.79 4,617,909 2,576.61

C. Cost Distribution - Combined (OPC + SRC)


Cost transferred to Grinding 4,162,772 2,388.99 4,259,188 2,565.36

Cost of closing Stock of Clinker 212,161 - 358,721 -Total : 4,374,933 2,386.79 4,617,909 2,576.61



2010 2009


31/49

Annexure-VI (A)

A. Quantitative Data - OPC

2010 2009

Tonne Tonne


Quantity received from Raw Mill. 2,143,432 2,252,610 (109,178)

Total : 2,143,432 2,252,610 (109,178)

Quantity fed into (the) Kiln. 2,143,432 2,252,610 (109,178)

Stock Adjustment - Burning loss. 803,787 844,728 (40,941)

Closing Stock. - - -

Clinker Produced. 1,339,645 1,407,882 (68,237)

Clinker purchased - 37,695 (37,695)

Opening Stock of Clinker. 124,083 82,872 41,211

Total available stock : 1,463,728 1,528,449 (64,721)

Clinker transferred to Grinding. 1,384,742 1,386,376 (1,634)

Clinker sold (Local) - - -

Clinker sold (Export) 5,311 17,990 (12,679)

Total clinker sold 5,311 17,990 (12,679)

Closing Stock of Clinker. 73,675 124,083 (50,408)

B: Cost Statement - OPC




(2) Received during the year. 825,375 616.11 840,259 596.82

(3) Total 825,375 616.11 840,259 596.82


Cost to be charged to the process (3) (4). 825,375 616.11 840,259 596.82


Local Clinker Purchase - - 111,230 79.01

Clinker handling charges 13,450 10.04 15,630 11.10

Labour 4,772 3.56 5,161 3.67

Salaries 26,251 19.60 28,393 20.17


Contract labour 7,971 5.95 8,621 6.12

Linning plate 274 0.20 3,060 2.17

Bricks 36,936 27.57 14,350 10.19

Coal / Gas / Oil 1,496,610 1,117.17 1,991,126 1,414.27

Water 5,820 4.34 6,193 4.40


Stores & spares 17,037 12.72 25,396 18.04

Depreciation 95,209 71.07 168,616 119.77

Insurance 9,488 7.08 12,479 8.86

Sub-Total (a) : 2,551,718 1,904.77 3,244,368 2,304.43





2010 2009

Increase/(Decrease)

Tonne


32/49

Cont'd Annexure-VI (A)



Power (Annexure X) 478,710 357.34 411,843 292.53


Sub Total (b) : 557,660 416.27 500,591 355.56

Total Cost (a+b) : 3,109,378 2,321.05 3,744,959 2,659.99

Opening Stock - Clinker - OPC 337,405 - 181,879 -

Total cost of clinker available 3,446,783 2,354.80 3,926,838 2,569.17

Less : Cost of clinker sold (if any) 12,506 2,354.83 46,219 2,569.17

Net Cost. 3,434,277 2,354.80 3,880,618 2,569.17

C. Cost Distribution - OPC


Cost transferred to Grinding 3,261,237 2,355.12 3,543,213 2,555.74

Cost of closing Stock of Clinker 173,040 - 337,405 -

Total : 3,434,277 2,354.80 3,880,618 2,569.17



2010 2009


33/49

Annexure-VI (B)

A. Quantitative Data - SRC

2010 2009

Tonne Tonne


Quantity received from Raw Mill. 586,646 433,181 153,465

Total : 586,646 433,181 153,465

Quantity fed into (the) Kiln. 586,646 433,181 153,465

Stock Adjustment - Burning loss. 219,992 162,443 57,549Closing Stock. - - -

Clinker Produced. 366,654 270,738 95,916

Opening Stock of Clinker. 7,839 10,993 (3,154)

Total available stock : 374,493 281,731 92,762

Clinker transferred to Grinding. 357,741 273,892 83,849

Clinker sold. - - -

Stock Adjustment. - - -

Closing Stock of Clinker. 16,752 7,839 8,913

Total : 374,493 281,731 92,762

B: Cost Statement - SRC




(2) Received during the year. 277,513 756.88 161,600 596.89

(3) Total 277,513 756.88 161,600 596.89


Cost to be charged to the process 277,513 756.88 161,600 596.89

(3) - (4).


Clinker handling 3,682 10.04 3,104 11.46Salaries 6,459 17.62 6,986 25.80


Coal / Gas / Oil 409,658 1,117.29 391,281 1,445.24

Linning plate 137 0.37 607 2.24

Water 1,212 3.31 1,289 4.76


Stores & spares 15,112 41.22 11,129 41.11

Depreciation 18,311 49.94 32,429 119.78

Insurance 2,611 7.12 2400 8.86

Sub-Total (a) : 739,893 2,017.96 616,549 2,277.29



Tonne



2010 2009

Increase/(Decrease)


34/49

Cont'd Annexure-VI (B)



Power (Annexure X) 163,767 446.65 79,206 292.56


Sub Total (b) : 179,447 489.42 96,832 357.66

Total Cost (a+b) : 919,340 2,507.38 713,381 2,634.95

Opening Stock - Clinker 21,316 - 23,910 -

Total cost of clinker available 940,656 2,511.81 737,291 2,617.00

Less : Value of clinker sold (if any) - - - -

Net Cost 940,656 2,511.81 737,291 2,617.00

C. Cost Distribution - SRC


Cost transferred to Grinding 901,535 2,520.08 715,975 2,614.08

Cost of closing Stock of Clinker 39,121 - 21,316 -Total : 940,656 2,511.81 737,291 2,617.00

.



2010 2009


35/49

Annexure-VII


2010 2009

Tonne Tonne

Opening Stock (Clinker) : - - -

Clinker received from Kiln. 1,742,483 1,660,268 82,215

Stock Adjustment - Inter transfers :(Annex-VII-C) - - -

Material added - Gypsum 50,136 61,397 (11,261)

- Slag - - -

Total : 1,792,619 1,721,665 70,954

Clinker fed into Grinding. 1,792,619 1,721,665 70,954


Closing Stock of Clinker. - - -

Opening Stock of Cement. 31,701 29,198 2,503

Cement produced. 1,792,619 1,721,665 70,954

Total available stock: 1,824,320 1,750,863 73,457

Cement produced as % of input. 100 100 -

Cement transferred to silos. 1,807,077 1,719,162 87,915


Closing Stock of Cement. 17,243 31,701 (14,458)

B. Cost Statement - Combined (OPC + SRC)


Cost received from Kiln :


(2) Received during the year. 4,162,772 2,322.17 4,259,188 2,473.88

(3) Inter transfers. - - - -(4) Total cost of Clinker. 4,162,772 2,322.17 4,259,188 2,473.88

(5) Cost of Closing Stock (Clinker). - - - -

Cost of clinker fed to Grinding process 4,162,772 2,322.17 4,259,188 2,473.88


Material added :

Gypsum 68,993 38.49 82,849 48.12

Labour 3,677 2.05 3,977 2.31

Salaries 6,550 3.65 7,084 4.11


Contract labour 1,727 0.96 1,868 1.08

Grinding media 2,507 1.40 28,190 16.37Linning plate 5,818 3.25 62,349 36.21

Stores & spares 34,543 19.27 25,437 14.77


Water 2,107 1.18 2,242 1.30

Depreciation 87,120 48.60 154,290 89.62

Insurance 9,322 5.20 11,418 6.63

Sub-Total (a) : 4,394,984 2,451.71 4,649,809 2,700.76



NAME OF DEPARTMENT - GRINDING (CEMENT)



Tonne

2010 2009


36/49

Cont'd Annexure-VII


Compressed Air (Annex IX) - - - -

Power (Annex X) 478,347 266.84 365,603 212.35

Other factory Expenses (Annex XI) 135,569 75.63 152,393 88.51

Sub-Total (b) : 613,916 342.47 517,996 300.87

Total Cost (a+b) : 5,008,900 2,794.18 5,167,805 3,001.63

Less: Transfer to Ground Slag - - - -

5,008,900 2,794.18 5,167,805 3,001.63

Opening stock - Cement 100,929 - 76,547 -

Cost of Cement available 5,109,829 2,800.95 5,244,352 2,995.30

C. Cost Distribution - Combined (OPC + SRC)

Cost transferred to Silos 5,063,749 2,802.18 5,143,423 2,991.82

Cost of Closing Stock of Cement 46,080 - 100,929 -

Total : 5,109,829 2,800.95 5,244,352 2,995.30




37/49

Annexure-VII (A)


2010 2009

Tonne Tonne


Clinker received from Kiln. 1,384,742 1,386,376 (1,634)

Stock Adjustment - Inter transfers - - -


- Slag - - -

Total : 1,424,913 1,436,446 (11,533)

Clinker fed into Grinding. 1,424,913 1,436,446 (11,533)



Opening Stock of Cement. 23,223 24,248 (1,025)

Cement produced. 1,424,913 1,436,446 (11,533)Total available stock: 1,448,136 1,460,694 (12,558)


Cement transferred to silos. 1,433,672 1,437,471 (3,799)



B. Cost Statement




(2) Received during the year. 3,261,237 2,288.73 3,543,213 2,466.65

(3) Inter transfers. - - - -

(4) Total cost of Clinker. 3,261,237 2,288.73 3,543,213 2,466.65(5) Cost of Closing Stock (Clinker). - - - -

Cost of clinker fed to Grinding process 3,261,237 2,288.73 3,543,213 2,466.65


Material added :

Gypsum 54,843 38.49 69,121 48.12

Labour 3,023 2.12 3,270 2.28

Salaries 5,386 3.78 5,825 4.06


Contract labour 1,420 1.00 1,536 1.07

Grinding media 2,089 1.47 23,519 16.37

Linning plate 4,860 3.41 52,130 36.29

Stores & spares 32,384 22.73 23,847 16.60


Water 1,734 1.22 1,845 1.28

Depreciation 72,684 51.01 128,724 89.61

Insurance 7,410 5.20 9,519 6.63

Sub-Total (a) : 3,453,835 2,423.89 3,870,031 2,694.17



Tonne

2010 2009





38/49

Cont'd Annexure-VII (A)



Power (Annex X) 380,238 266.85 305,023 212.35


Sub-Total (b) : 493,152 346.09 431,950 300.71

Total Cost (a+b) : 3,946,987 2,769.98 4,301,981 2,994.88


3,946,987 2,769.98 4,301,981 2,994.88


Cost of Cement available 4,020,822 2,776.55 4,365,959 2,988.96


Cost transferred to Silos 3,982,449 2,777.80 4,292,124 2,985.89


Total : 4,020,822 2,776.55 4,365,959 2,988.96




39/49

Annexure-VII (B)


2010 2009

Tonne Tonne


Clinker received from Kiln. 357,741 273,892 83,849

Stock Adjustment - Inter transfers : - -


- Slag - - -

Total : 367,706 285,219 82,487

Clinker fed into Grinding. 367,706 285,219 82,487



Opening Stock of Cement. 8,478 4,950 3,528

Cement produced. 367,706 285,219 82,487

Total available stock: 376,184 290,169 86,015


Cement transferred to silos. 373,405 281,691 91,714



B. Cost Statement




(2) Received during the year. 901,535 2,451.78 715,975 2,510.26

(3) Inter transfers.(4) Total cost of Clinker. 901,535 2,451.78 715,975 2,510.26

(5) Cost of Closing Stock (Clinker). - - - -

Cost of clinker fed to Grinding process 901,535 2,451.78 715,975 2,510.26


Material added :

Gypsum 14,150 38.48 13,728 48.13

Labour 654 1.78 707 2.48

Salaries 1,164 3.17 1,259 4.41

Employee's other benefits 606 1.65 655 2.30

Contract labour 307 0.83 332 1.16

Grinding media 418 1.14 4,671 16.38Linning plate 958 2.61 10,219 35.83

Stores & spares 2,159 5.87 1,590 5.57


Water 373 1.01 397 1.39

Depreciation 14,436 39.26 25,566 89.64

Insurance 1,912 5.20 1,899 6.66

Sub-Total (a) : 941,149 2,559.51 779,778 2,733.96



Tonne




2010 2009


40/49

Cont'd Annexure-VII (B)



Power (Annex X) 98,109 266.81 60,580 212.40


Sub-Total (b) : 120,764 328.43 86,046 301.68

Total Cost (a+b) : 1,061,913 2,887.94 865,824 3,035.65


1,061,913 2,887.94 865,824 3,035.65


Cost of Cement available 1,089,007 2,894.88 878,393 3,027.18


Cost transferred to Silos 1,081,300 2,895.78 851,299 3,022.10


Total : 1,089,007 2,894.88 878,393 3,027.18




41/49

Annexure-VIII


2010 2009

Tonne Tonne

Opening stock of Cement (Un-packed). - - -

Add : Cement received from Grinding dept. 1,807,077 1,719,162 87,915

Total : 1,807,077 1,719,162 87,915

Less : Closing stock of cement (Un-packed). - - -

Cement sold during the period : Packed 1,715,452 1,534,581 180,871

Bulk 91,625 184,581 (92,956)

1,807,077 1,719,162 87,915

Add: Opening stock of cement (packed) - - - -(No. of bags) - - -

Less : Quantity sold (No. of bags). 34,309,036 30,691,620 3,617,416

Closing stock of cement (packed). (No. of bags). - - -

Stock adjustment (if any). (No. of bags). - - -

B. Cost Statement - Combined (OPC + SRC)


Cost of opening stock-unpacked - - -

Cost transferred in from cement Grinding dept. 5,063,749 2,802.18 5,143,423 2,991.82


Packing materials 552,724 322.20 514,606 335.34

Labour 2,098 1.22 2,269 1.48Salaries 3,496 2.04 3,781 2.46


Contractor Labour 39 0.02 43 0.03

Repair and maintenance 15,359 8.95 17,242 11.24

Insurance 565 0.33 692 0.45

Depreciation 5,280 3.08 9,351 6.09

Sub-Total (a) : 5,645,237 3,141 5,693,491 3,350



Power (Annex X) 16,553 9.65 12,651 8.24


Sub-Total (b) : 60,894 35.50 62,495 40.72Total Cost (a+b) 5,706,131 3,176.64 5,755,986 3,390.99

Less : Cost applicable to un-packed closing stock - - - -

Cost applicable to packed closing stock - - - -

Balance : Cost of packed cement sold Local 5,445,323 3,174.28 5,193,591 3,384.37

Cost of loose cement sold (if any) 260,808 2,846.46 562,395 3,046.87

Cost of Total cement sold : 5,706,131 3,176.64 5,755,986 3,390.99




NAME OF DEPARTMENT - PACKING & STORAGE



Tonne

2010 2009


42/49

Annexure-VIII (A)


2010 2009

Tonne Tonne


Add : Cement received from Grinding dept. 1,433,672 1,437,471 (3,799)

Total : 1,433,672 1,437,471 (3,799)


Cement sold during the period : Packed 1,356,371 1,272,667 83,704

Bulk 77,301 164,804 (87,503)

1,433,672 1,437,471 (3,799)

Add: Opening stock of cement (packed) - - - -

(No. of bags) - - -

Less : Quantity sold (No. of bags). 27,127,423 25,453,340 -



B. Cost Statement


Cost of opening stock-unpacked. - - - -

Cost transferred in from cement Grinding dept. 3,982,449 2,777.80 4,292,124 2,985.89



Labour 1,727 1.27 1,868 1.47

Salaries 2,878 2.12 3,113 2.45




Insurance 448 0.33 579 0.45

Depreciation 4,414 3.25 7,818 6.14

Sub-Total (a) : 4,445,445 3,119.15 4,752,533 3,347.65



Power (Annex X) 13,133 9.68 10,578 8.31


Sub-Total (b) : 50,240 37.04 52,290 41.09

Total Cost (a+b) 4,495,685 3,156.19 4,804,823 3,388.74Less : Cost applicable to un-packed closing stock - - - -


Balance : Cost of packed cement sold Local 4,276,931 3,153.22 4,303,286 3,381.31


Cost of Total cement sold : 4,495,685 3,156.19 4,804,823 3,388.74



2010 2009



Tonne




43/49

Annexure-VIII (B)


2010 2009

Tonne Tonne


Add : Cement received from Grinding dept. 373,405 281,691 91,714

Total : 373,405 281,691 91,714


Cement sold during the period : Packed 359,081 261,914 97,167

Bulk 14,324 19,777 (5,453)

373,405 281,691 91,714

Add: Opening stock of cement (packed)- - - -

(No. of bags)

Less : Quantity sold (No. of bags). 7,181,613 5,238,280 -



B. Cost Statement


Cost of opening stock-unpacked - - - -

Cost transferred in from cement Grinding dept. 1,081,300 2,896 851,299 3,022



Labour 371 1.03 401 1.53

Salaries 618 1.72 668 2.55

Employees' other benefits 340 0.95 368 1.41



Insurance 117 0.33 113 0.43

Depreciation 866 2.41 1,533 5.85

Sub-Total (a) : 1,199,792 3,226 940,958 3,364



Power (Annex X) 3,420 9.52 2,073 7.91


Sub-Total (b) : 10,654 29.67 10,205 38.96

Total Cost (a+b) 1,210,446 3,255.44 951,163 3,403.39

Less : Cost applicable to un-packed closing stock - - - -


Balance : Cost of packed cement sold 1,168,392 3,253.84 890,305 3,399.23


Cost of Total cement sold : 1,210,446 3,255.44 951,163 3,403.39


2009

Tonne

2010







44/49

Annexure-IX



Compressed Air produced.

B. Cost Statement



Labour.

Salaries.

Employee's other benefits.

Indirect materials.

Insurance.

Repairs and maintenance.

Fuel-Oil.

Gas

Depreciation

Purchased Power.Other Overheads.

Sub-Total (a) :


Power (Annexure X).

Other Expenses (Annexure IX).

Sub-Total (b) :

Total Costs (a+b) :


Departments using compressed air : Quantity Cost



NAME OF THE DEPARTMENT - AIR COMPRESSING




45/49

Annexure-X



KWH KWH KWH

Installed capacity KWH - - -

No. of Units Generated. - - -

No. of Units purchased. 207,117,718 199,481,000 7,636,718

Total : 207,117,718 199,481,000 7,636,718

self - consumption in power house. - - -

Losses. - - -

Net units consumed by various other depts :(1) Percentage of loss to total power - - -

generated and purchased.

(2) Percentage of power generated to - - -

installed capacity

B. Cost Statement

S.No. Particulars Quantity Rate Amount 2010 2009

Units Rs. Rs. Rs. Rs.

1. Fuel Oil/Steam consumed.2. Other materials (specify).

3. Consumable Stores.

4. Other Direct charges.

5. Salaries and wages.

6. Repairs and maintenance.

7. Other Overheads.

8. Depreciation.

Total :

Less : (1) Supplies to other units of the

company. (not engaged in the manufacture of 1,682,361 6.62 11,137 6.62 5.25

cement.).

Net Cost of power Generated.

Purchased power 205,435,357 6.62 1,359,916 6.62 5.25

(on actual consumption basis).

Total Power Consumption : 207,117,718 6.62 1,371,053 6.62 5.25

Cost per unit (average). - - - - -


Cost per unit of power

generated and purchased


STATEMENT SHOWING THE COST OF POWER GENERATED/PURCHASED AND CONSUMED



46/49

Cont'd Annexure-X

2010 2009 Increase/C. Cost Distribution Rs. Rs. (Decrease)

Consumed in:

- Lime stone, Clay, Gypsum Quarry. - - -

- Transportation. - - -

- Crushing. 29,187 22,309 6,878

- Stock Hall. - - -

- Raw Mill. 204,489 156,292 48,197

- Kiln (OPC & SRC). 642,477 491,049 151,428

- Cement Grinding (OPC & SRC). 478,347 365,603 112,744

- Storage and Packing (OPC & SRC). 16,553 12,651 3,902

- Air Compressing. - - -- Others. - - -

Total Cost distributed : 1,371,053 1,047,904 323,149




47/49

Annexure-XI

A. Cost Statement

2010 2009

Rs. in '000' Rs. in '000'


Salaries & wages 237,523 266,998

Stores / Spares and Repairs / maintenance 33,336 37,473

Depreciation 8,334 9,368

Miscellaneous Expenses 137,514 154,580

416,707 468,421

B. Cost Distribution

2010 2009

Rs. in '000' Rs. in '000'

Lime stone, Clay, Quarry 31,811 35,759

Transportation - -

Crushing 36,813 41,380

Stock Hall - -

Raw Mills 73,543 82,670

Kilns 94,630 106,374

Cement Grinding 135,569 152,393Packing and Storage 44,341 49,844

Air Compressing (if any) - -

Power Generating (if any) - -

Total 416,707 468,421


DEPARTMENT COST STATEMENT

OTHER FACTORY EXPENSES - FACTORY GENERAL




48/49


49/49

Quantity Rupees

in Tonne in 000

Opening Stock 210.46 361

Production 30.00 48

240.46 409

Cost of goods sold 240.00 408

Closing Stock 0.46 1


2009-2010


COST OF SALES OF GROUND SLAGFOR THE YEAR ENDED JUNE 30, 2010

Particulares

attock cenent cost audit report_2010

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