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Lucky Cement Final Project
Lucky Cement Final Project
Lucky Cement Final Project
ON
LUCKY CEMENT
[FINANCIAL ANALYSIS]
27/12/2012
PRESENTED TO:
PRESENTED BY:
ALLAH, the most Merciful and Beneficiate of all, who bestowed us with the
ability to complete this project. It gives us immense pleasure and honor to extend
our thanks to our kind & cooperative . Prof Ayesha Anwar from Faculty of
Institute of Management Sciences, Lahore for his valuable advices and suggestions
Finally, we pay regards of gratitude to our parents, as they and their prayers for our
Brothers Group” – one of the largest export houses of Pakistan, Lucky Cement Limited currently
has the capacity of producing 25,000 tons per day of dry process Cement.
Lucky Cement Limited (LCL) is Pakistan‟s largest producer and leading exporter of quality
cement with the production capacity of 7.75 million tons per annum. The company is listed on
Over the years, the Company has grown substantially and is expanding its business operations
with production facilities at strategic locations in Karachi to cater to the Southern regions, Pezu
and Khyber Pakhtunkhwa to furnish the Northern areas of the country. Lucky Cement is
Pakistan‟s first company to export sizeable quantities of loose cement being the only cement
manufacturer to have its own loading and storage terminal at Karachi Port.
Lucky Cement is an ISO 9001:2008 and 14001:2004 certified company and also possesses many
other international certifications including Bureau of Indian Standards, Sri Lankan Standard
Institute, Standards Organization of Nigeria, Kenya Bureau of Standards and South African
Bureau of Standards.
Founder History
Late Abdul Razzak Tabba, the deceased Chairman of the Yunus Brothers Group is
the person behind the success of the Group. He was a prominent business leader and
Mr. Tabba's dynamism, loyalty and vision to make Pakistan stronger among other
were the major goals set by him. It was Mr. Tabba‟s dynamism that the Group
expanded from regional to international level, despite the economic meltdown. Mr. A. Razzak Tabba (S.I)
The late Chairman
& Chief Executive
of Lucky Cement
Under the leadership of Mr. Abdul Razzak Tabba, the Group received more than 20 Exports
Trophies from the Government of Pakistan, for the highest overall exports from the country and
He was not just a visionary businessman, but also was a leader and philanthropist. All his
philanthropic activities were routed through the Aziz Tabba Foundation, Established for
promotion of charity and other welfare-oriented projects, serving the humanity with unmatched
Mr. Razzak Tabba strived for excellence through perfect balance between his career and service.
Mr. Abdul Razzak Tabba is no more among us but his values continue, giving hope and strength
world by bringing in more and more industrialization and technology transfers – these were
some of the many goals set by our late Chairman & Chief Executive Mr. A. Razzak Tabba.
Yunus Brothers Group is one of the largest export house of Pakistan that has grown up
remarkably over the last 50 years. The YB Group is engaged in diversified textile manufacturing
activities consisting of Spinning, Weaving, Processing, Finishing and Stitching. The Group also
owns one of the largest cement manufacturing plant and the second largest yarn manufacturing
capacity in the Country. Besides manufacturing, the Group is also engaged in International
The Group consists of the following Companies, with an annual turnover of over Rs. 27 Billion
or US$ 450 Million during year 2004~2005 out of which exports amounted to US$ 300 Million.
Board of Directors
Chief Executive
Mr. Muhammad Ali Tabba
Internal Auditors
M/s. M. Yousuf Adil Saleem & Co.,
Chartered Accountants
A member firm of Deloitte Touche
Tohmatsu
Cost Auditors
Head Office:
6-A, Muhammad Ali Housing Society,
A. Aziz Hashim Tabba Street,
Karachi - 75350
UAN # (021) 111-786-555
Website: www.lucky-cement.com
E-mail: info@lucky-cement.com
Liaison Office
Dastagir Tower, 1st Floor, Hassan Parwana Road, Near Deira Ada, Multan
Tel: (92-61) 4540556-7
Multan
Fax: (92-61) 4540558
multan@lucky-cement.com
2nd Floor, Al Hasan Plaza, Jamia Ashrafia, Main Ferozpur Road, Lahore
UAN: (92-42) 111-786-555
Lahore
Tel: (92-42) 37530480-2 Fax: (92-42) 37530435
lahore@lucky-cement.com
House No. 26, Street No. 8, Sector F-7/3, Islamabad UAN: (92-51) 111-786-555
Islamabad Tel: (92-51) 2610804-07 Fax: (92-51)2610809
dm@lucky-cement.com
Production factories:
1) Pezu, District Lakki Marwat, Khyber Pakhtunkhwa
Karachi.
BUSINESS STRATEGY
Further reinforcing our strength is what we keep in focus when designing our business strategies
Broadening our horizons, we have engaged our resources to the unconventional markets to
3. Efficiency
Efficiency is reflected in all our business approaches, giving us an edge over the competitors in
4. Sustainable Development
We believe in giving back to the communities we operate in and to the society at large. We
endeavor to stimulate environmental awareness among the stakeholders and have a broad vision
5. HR Excellence
We believe in people development. Our Human Resource is our asset and an important factor in
our success. Our intellectual capital provides a framework that serves as a guiding force for the
organization as a whole.
Corporate Philosophy
Vision Statement
We envision being the leader of the cement industry in Pakistan, identifying and capitalizing on
new opportunities in the global market, contributing towards industrial progress and sustainable
Mission Statement
having state-of-the-art technology, identifying new prospects to reach globally and maintain
service and quality standards to cater to the international construction needs with an
environment-friendly approach.
Logo Philosophy
Recently, we launched our new identity marking a significant milestone in our history. Our new
logo represents the core values that Yunus Brothers uphold and live by. The hexagon presents
our values, attributes and quality parameter which comprises of state of the art technology, our
foresight and innovation to compete with international standards. Our commitment to quality and
the diversity of our portfolio to meet the customer needs. It reflects our journey towards modern
and innovative business practices, smart investment moves, diversity in human resource and
Awarded the Export Trophy to Lucky Cement for highest exports of cement from Pakistan.
Top Exporter
Top Importer
strength of my body and soul; my guiding stars were faith, honesty and excellence. I fired above
the mark that I intended to hit. Energy and invincible determination with the right motives are
the levers through which I moved the world. Reflecting on my success, it is evident that I am the
unparalleled market leader. Through my strategies, I anticipate the needs of the industry. I have
managed to stay on top with cutting edge solutions, building your dreams and making them a
reality. On my journey, I have left traces for winners to become champions. As I embark on a
new chapter to help shape the future of our nation, you can rest assured that I will deliver you
I am Lucky Cement!
COMMUNITY DEVELOPMENT:
Lucky Cement established water supply scheme and distribution lines to provide clean
drinking water to the residents of Darra Pezu. The 9 Km water supply line provides clean
drinking water facility to the residents of the rural localities situated in the outskirts of Darra
Pezu town. The distribution line starts from Lucky Cement's Pezu Plant and provides water to
outskirts of Pezu by connecting with two wells made by LCL. From these wells, water is then
passed to the old distribution lines and hence spreads all over Darra Pezu. This water supply line
provides drinking water to almost 70% of the population of Pezu, which is equal to 5,000
households. Outside Pezu, almost 2,000 households get water from these lines
o Lucky Cement, in partnership with Concern for Children Trust (CFC), is setting
Machar Colony, a slum area in Karachi. The Machar Colony has a population of
quality health care for women. By establishing this facility, Lucky Cement and
CFC aim's at creating awareness about prenatal and post natal care of mother
and child, safe child birth and prevention and cure of any disabilities in children
at an early stage.
o After providing relief to the affectees of the massive destructions caused by floods
and heavy rains last year, Lucky Cement focused all the efforts towards
rehabilitation of the IDPs. Lucky Cement generously donated 600 cement bags for
o Lucky Cement's management in Pezu has initiated a merit cum need based
scholarship scheme for the local students of Graduate and Post Graduate levels,
education.
World-Class Primary School in Darra Pezu
o LCL is all set to construct a world-class primary school, near its factory in Pezu,
Government of Pakistan and endorsed by the World Bank. This school will be
affiliated with Pakistan's well known school system and will provide access to
quality education to the residents of the area. In first phase, the company will
as well. This school will be strategically constructed in an area where there are no
o LCL also runs a well-maintained primary school, up to class five, for the children
of the factory workers in Pezu. The school is registered with Benu Education
Board and provides quality and free of cost education to the children of
employees.
welfare gesture for the locals of the area and to boost overall commerce and
economy. Upgrading of the airport exterior and interior has been completed,
along with provision of furniture for both arrivals and departure lounges.
Development of the Company
1993 Listed on Karachi, Lahore and Islamabad Stock Exchanges
1996 Entered into commercial business with production capacity of 1.2
million tons per annum (Lines A and B at Pezu Plant)
1999 Production capacity increased to 1.5 million tons per annum
2001 Conversion of Kiln Firing System from furnace oil to coal based
2002 Started exporting cement
2005 Started new production line (Line C) at Pezu
Inaugurated new production facility in Karachi
Became the largest cement exporter from Pakistan
2006 Started new production line (Line D) in Pezu
Started production in Karachi plant (Lines E and F)
Became largest cement producer of Pakistan.Acquired transportation
fleet of bulkers and ship loaders
2007 Became the first company to export loose cement through sea
2008 Set up its own cement storage facility at Karachi Port with the
capacity of 24,000 tons
Conversion of furnace oil power generation engines to gas-based
Got listed in London Stock Exchange and became the first cement
company in Pakistan to issue GDR
2009 Started the 7th production line (Line G) at Karachi Plant, bringing
the total production capacity to 7.75 million tons per annum
2010 Waste Heat Recovery Project started operations at both Karachi and
Pezu Plants
Acquired multi-purpose trailers for moving all kinds of payload,
either bagged or in raw form
2011 Signed MOU to sell 20 MW electricity to Hyderabad Electric Supply
Company (HESCO)
Set up a plant at Karachi Plant to replace coal with Tyre Derived
Fuel (TDF) to further reduce cost of production
Invested in a joint venture in DR Congo
2012 Started supplying electricity to HESCO.
Signed Lol for supply of electricity to PESCO.
Invested in a joint venture of cement grinding plant in Iraq.
Shares acquisition of ICI Pakistan limited.
INVESTOR RELATIONS
Lucky Cement realizes the importance of interaction with the existing shareholders and potential
investors of the Company and in this respect participates in various investor conferences held
For the last couple of years, LCL has been participating in national and international
Conferences to meet and interact with existing and potential investors for attracting foreign
For any investor related queries and / or grievances, contact our Corporate Affairs Department or
EXPORTS
Pakistan‟s first company to export sizable quantity of loose cement and it is the only
cement manufacturer to have a loading and storage terminal at Karachi Port. This state-of-the-art
project is based on the latest European technology and the first in South East Asia and
Middle Eastern region. This terminal is equipped with logistical arrangements to carry loose
cement, which is transferred to the port from our Karachi Plant via a fleet of especially designed
cement bulkers, they are capable of off-loading loose cement into carrier ships directly through a
unique compressor system installed on each vehicle. Each bulker can carry up to 75 tons of
cement.
Our infrastructure at Karachi port is specially designed to transfer loose cement to the vessels in
the shortest amount of time, making it efficient and reliable for reducing the vessels idle time , in
turn making the shipments timely as per the customer requirements. We have installed cement
storage silos at the port which are capable of storing 24,000 tons of cement. LCL has set up
automatic ship loaders at the site to make a fully automatic loading from the silos when the
vessels arrive. This system works at fast discharge rates and enables quick loading time, ensuring
cement availability at the port anytime; thus playing a major role in increasing our export
capacity. The loading capacity of this terminal is 12,000 tons of loose cement per day, which
depends upon the size and construction of vessel(s). In order to store large amount of cement,
four silos have been installed, each silo has a capacity to store around 6000 metric tons cement,
and underground system has been designed to unload bulkers, store cement into silos and
The whole system is designed on the basis of PLC (Programmable logic control) system. All
processes go through a fixed repetitive sequence of operations that involves logical steps and
decisions. PLCs are used to control time and regulate the system, the extraction of cement from
bulkers and reloading in to vessels is processed though vacuum pumps and compressors, which
operate through powerful generators. The cement transfer volumes attained through this system
is approximately 500 metric tons per hour. A strong work force of skilled individuals, including
engineers, technicians and labor are employed at the company‟s terminal on port.
With this specialized work force, Lucky Cement is capable of loading around 2000 tons of
bagged cement per day, and 3000 tons cement per day in sling bags. This record rate of loading
is achieved through our well-trained stevedores who maintain load rate and utilize their
capabilities to the maximum. To date, more than 50 million tons of loose cement has been
natural materials such as limestone, clay, iron ore and sand. When cement is mixed with water, it
can bind sand and turns into a hard, solid mass called concrete.
The key element – Limestone and clay are mined through blasting from rock quarries by setting
off explosives. Limestone and clay contains calcium, silicon, aluminum and iron, which are the
essential elements for cement manufacturing. Latest technology is used for blasting so as to
ensuring vibration, dust, and noise emissions are kept at a minimum level. Blasting produces
materials in a wide range of sizes from approximately 1.5 meters in diameter to smaller particles
less than a few millimeters in diameter. Quarried material is the loaded into trucks or belts for
transportation to the crushing plant. Through a series of crushers and screens, the Limestone is
Pre - Homogenization
In the dry process, each raw material is proportioned to meet a desired chemical composition and
fed to a vertical steel mill. The raw materials are dried with waste process gases and grinded
through the pressure exerted by three conical rollers in a rotary kiln. The rotary kiln is fired with
an intense flame produced by burning coal, coke, oil, gas or waste fuels. The dry materials
exiting the mill are called "kiln feed". The kiln feed is pneumatically blended to ensure the
chemical composition is well homogenized and is then stored in separate silos until required.
Basic chemical reactions that take place in the kiln, at 1400 °C are: Evaporation of moisture,
calcinations of the Limestone to produce free calcium oxide and reaction of the calcium oxide
with other materials (sand, shale, clay, and iron). This results in a final, nodular, red-hot product
known as "Clinker" which is 3 – 4 centimeters in diameter and can be stored for several months.
The clinker is cooled and grinded into a fine grey powder. The grinding is done through
different-size steel balls. A small amount of gypsum and other process are also added during the
final grinding. The amount of gypsum and process added during the process varies in all of the
final cement products. Each cement product is stored in an individual silo from where it is
transported to packaging facility for either sack – packaging or bulk transportation. Bulk cement
QUALITY ASSURANCE
Lucky Cement greatly emphasizes in manufacturing high quality cement through stringent
quality control techniques and computerized control systems. Using sophisticated equipment like
Distributed Control System (DCS), Programmable Logic Controllers (PLCs) and on line X-Ray
Analyzers. We have one of the best equipped laboratories, with facilities for analysis of raw
material, semi furnished product, furnished product and fuel, to ensure the supply of high quality
product to market.
Quality of the cement has been tested and proven up to the specifications mentioned in Pakistan,
British, Indian, Kenyan, Nigerian, South African and Sri Lankan Standards.
We offer Ordinary Portland Cement (OPC) that is used in all general constructions, especially in
major and prestigious projects where cement is needed to meet stringent quality requirements. It
can also be used in concrete mortars and
retarders, etc.
and with high strength at all ages. Our OPC cement satisfies EN 196 / 197 – 1, SABS, BIS, SLSI
By maintaining C3A level within the specified limit of 3.5%, our Sulphate Resistant Cement is
more resistant to Sulphate attacks and is suitable for use in foundations near seashore and canal
linings.
SRC has lower heat of hydration and its strength satisfies B.S 4027 / 1980 & PS 612 / 1989.
Clinker:
We also offer clinker to the customers with their own grinding units. Clinker can be easily
handled by ordinary mineral handling equipment and can be stored for several months without
compromising on the quality. Clinker is the primary product in the cement manufacturing
process where limestone, clay and sand are grinded and heated, before the gypsum is added to
produce the final product of cement.
Block Cement:
By the nature of product, Block Cement is similar to the SRC, with a significantly darker color
and some low setting time to meet the requirements of the market and for the production of
blocks. Block Cement also maintains C3A level within the specified limit of 3.5%.
BRANDS AVAILABLE AT LUCKY CEMENT
SUSTAINABILITY
Business leaders across the globe, appreciate the fact that business is not just about
making quality products or satisfying your clients. Beyond the requirement of legal
settings, businesses are now required to manage the wider social
Lucky Cement is actively contributing towards the welfare of the society and plays its part in
Believing in fair and transparent practices, we have reported separately on our sustainability
initiatives for the financial year 2011. Our Sustainability Report 2011 has been assessed with a
Level Check „A‟ by the Global Reporting Initiative (GRI). This makes us the only company in
Lucky Cement
Others, 23%
Attock Cement , 20%
, 6%
Bestway Cement
, 11%
DG Khan Cement
Pioneer , 15%
Maple Leaf
Cement , 4%
Cement , 10%
Lafarge Cement
, 6%
Kohat Cement , 5%
facilitate the integration of Pakistani businesses into world economy and to encourage the
relevant to the profession of marketing. It provides facilities for the study of inquiry and research
into marketing problems. The Association enjoys patronage from the Government of Pakistan
US Atlantic Council
The Atlantic Council has been a preeminent, nonpartisan institution devoted to promoting
transatlantic co-operation and international security. The council provides an essential forum
Building Network
Lucky Cement maintains a strong network of association with its corporate stakeholders. Our
association with prominent public and corporate platforms enable us in strengthening our bond
taking all the requisite measures to prevent any harm. We ensure that all our stakeholders are
protected from any potential hazards. Today, when information related to health issues is widely
available and just a click away, there is still a significant lack of knowledge regarding the typical
signs and risk factors associated with serious medical conditions. We effectively control any
risks to injury or health that could arise at the workplace and educate our employees on how to
deal with risks and train them with various first-aid techniques.
Fire Fighting
We believe that the ample knowledge in first aid and fire fighting support should be an essential
aspect for an office environment as these trainings are important for both the support provider
and the victim and minimizes the potentials of any unpleasant event.
threatening conditions that may cause pain or dysfunction. We organized a session on Basic Life
Support training for our employees, which was fruitful in enabling them to identify several life-
threatening emergencies, performing CPR and ease choking in a safe, timely and effective
manner. All the participants actively performed the practical and were given certificates for their
participation.
[FINANCIAL ANALYSIS]
27/12/2012
The vertical analysis shows very good performance of the organization, Cost of Services are
52% of sales with a resulting Gross Profit of 33% this is good performance of the company and
despite very good sales revenue of over Rs. 391 Billion the profitability of the organization is
In distribution cost major expense is incurred on Advertisement and distribution which is Rs. 32
Administrative expenses of the organization still increase with the previous year 1% of the
total sales revenue and amounts more than Rs. 4.74 Billion it is also very high.
Finance Cost of organization is decrease as compare to previous year that cost are Rs. 2.53
Just because of the above mentioned main points organization performance is so good and
As you can see in the statement of profit and loss, lucky cement‟s gross profit is sizable, at 33
percent. The distribution cost, though, are eating up a huge chunk of the revenues; that could be
an area in which to cut back. General operating expenses take up a reasonable percentage of
When we do a horizontal analysis of the organization we come to find that the sales of
organization have increased by 37% but surprisingly its cost of services increased by 24%
which clearly indicates that the management of the organization is in a very good shape and the
corresponding cost of sales to with better management. As a result even the increase in sales has
resulted that company grow well and performance is so good as compared to the previous year it
is still growing and improve the sale volume on the organization in the coming year.
Gross profit of the organization is decreased by 59% which indicates clearly that company
going to improve and cost of good is not effect on the profit of the company.
Exchange profit of the organization in the year 2012 has increased by 143% slightly change in
Due to all above results and good business performance the overall profit of the organization has
increased by 116% which is make stronger of the organization and in the future it may increase
Fixed assets
Property, plant and equipment 31,016,532 31,705,156 31,378,255 76.34% 98.85%
Intangible 1,514 1,685 2,977 0.00% 50.86%
31,018,046 31,706,841 31,381,232 76.34% 98.84%
Long term loan advances 55,373 55,373 55,373 0.14% 100.00%
Long term deposit 3,175 3,175 2,175 0.01% 145.98%
31,076,594 31,765,389 31,438,780 76.48% 98.85%
CURRENT ASSETS
CURRENT LIABILITIES
Trade and other payables 3,345,605 4,043,689 3,043,320 8.23% 109.93%
Accrued interest 13,319 85,448 155,500 0.03% 8.57%
Short-term borrowings 0 6,302,282 6,267,112 0.00% 0.00%
Current Long-term financing 265,400 265,400 175,759 0.65% 151.00%
3,624,324 10,696,819 9,641,691 8.92% 37.59%
CONTINGENCIES AND COMMITMENTS
TOTAL EQUITY AND LIABILITIES 40,631,241 41,209,885 38,310,244 100.00% 106.06%
between the Fixed and Current assets as the Fixed assets are 77% of the total assets which is very
normal and the Current Assets are 23% of the total assets and it is also veru normal and
favourable.
On the other hand the liability side is in a very good shape and it shows that the equity side of the
SOFP is very positive due to good balance of reserves which are due to accumulated profit of
Another alarming fact is the Current Liabilities as they comprise of 9% of the total libilities
and Non-Current liblities are also 9% and equity is 82% as show in the above statement of
the financial position it is very strong position of the company , which indicates that the
organization has to pay off of the organization is very little and strong equity of the organization.
increase significantly and it has increase by 153% amounting about Rs. 8.4 Billion, short term
investments have also been increase by 139% which means that the orgnaization has sold its
Liability side of the SOFP has also became very strong and very huge change as compared to
the previous year, balance of the reserves has been increased by 30% which is due to the increase
in the profits of the organization during the past years. Long term financing of the organization
has been decrease by 77% amounting a very heavy amount of Rs. 12.75 billion, as the overall
long term financing is decrease, hence it will also decrease the overall finance cost in the future
Current Liabilities of the organization have also been decrease by 62% which the horizantial
The share capital and reserves of the company are increasing every year, which shows the strong
organizations as 4% in that year but a well decrease in current liabilities 62%. There is a jump in
debts. The higher value of liquidity ratios reflects that the company is well secured in performing its
obligations of short term debts. The calculation of current ratio shows that lucky cement is well secured in
this region. Its current ratio is 2.64 more than previous year .88
Inventory Turnover:
If we compare the inventory turnover it is 3.84 in year 2011 and 5.84 this year. This shows that company
has lower its efforts to convert its inventory into sales due to several reasons like power shortage.
Profitability ratios are the measure of assessing business performance of generating profits with
respect to its expenses and other relevant expenses in a specific period of time say one year. The
higher value as compare to the competitors or industry average or relative to previous period
show the business is going well. In the present case, Company Lucky cement generated 27.00
Gross Profit as compare to year in 2011 which Gross Profit was 33.00 which shows that 2012
has better managed its COGS which resulted in increase of the Gross Profit.
Company has generated 14% Operating Profit in 2011 and as compare to previous year in 2012
Operating Profit is 21%. Company decrease their finance cost and slightly change in CGS that is
and sales revenue is so high as compared to the previous year and performance is so increase in
that year.
Net Profit Ratio:
Company has generated 12.50% Net Profit in 2011 and as compare to previous year in 2012 Net
Profit is 17.40%. This improvement is so high in the net profit that company improved his
performance beyond the previous years. Company decrease his finance cost also increases his
Lucky cement is very strong in this area and proved that the management is well employing it
Capital Employed (capital investment) generating almost 22.57% in this year and the previous
year ROCE was 11.23% that show the strong area of the company management and more return
Return on Assets:
Lucky Cement is increase in return on assets in this year that would be 20% in 2012 and in 2011
that was 10% Company financial position is strong as compare to the previous year.
Assets Turnover show that how much company has generated by employing on unit of currency.
Lucky cement is generating about 0.96 revenues against Re.1.0 assets. This reveals that although
The purpose of using liquidity ratio is to determine the ability of the company for paying off its
short term debts. The higher value of liquidity ratios reflects that the company is well secured in
performing its obligations of short term debts. The calculation of quick ratio shows that
Company is well secured in this region.. The Company can easily meets its short term
liabilities. Even is position with respect to Inventory Turnover is also better. Company Quick
Ratio in 2011 was 0.29:1 but in 2012 Quick Ratio is 1.15:1 that show the company well secured
Debt ratio:
Gearing ratio is the measure to check the equity to borrowed funds/long term financing. The best
measure is the gearing ratio (Debt to equity). The results of the company show that they are
highly geared as the portion of their borrowed money is very much higher than the owners
equity. The other best measure is to check, how much the profit covers its interest. The higher
the interest cover ratio value, the more safe the company position is. The debt ratio in 2011 was
33% and in 2012 debt ratio is 18% show the company decrease the payables and remove all
short term borrowing and also decrease the long term financing that impact on the debt ratio and
Interest cover:
Interest cover ratio is the measure to check the equity to borrowed funds/long term financing.
The best measure is the gearing ratio (Debt to equity). The results of the company show that they
are highly geared as the portion of their borrowed money is very much higher than the owners
equity. The other best measure is to check, how much the profit covers its interest. The higher
the interest cover ratio value, the more safe the company position is. Interest Cover was 8.2 in
2011 and in 2012 it is so high 32.87 that is four time double in that year and company show so
the high equity in present and it would shows as well strong financial position.
Most important is what the company is paying back toits investors/owners. The greater value of
EPS maintain the investors and owners confidence on the company.The Company is paying
almost double the value and building its better image before the investors. The previous year
EPS was 12.28 and in 2012 it is increase by 20.9 that is greater value of EPS in present.
The Company has adopted the following new and amended IFRS and IFRIC interpretations
In May 2010, International Accounting Standards Board (IASB) issued amendments to various
In cement industry have some issue regarding electricity but the company should have to
improve their strategies and omit these issues.
The company should have to payoff its long term debts to avoid such a heavy finance
costs.
Finally, it needs more exemplary leadership, expand their business in foreign counties
and improve pricing stretgies and aslo improve its performance.
Conclusion:
Lucky Cement Lamited is one of the largest cement company in pakistan is financial performanc
in 2012 is so good as compaird to the previous yares.
Company management is so strong and strategies that are used is very usefull for the company
betterment and its growth. Due to state issues like electrocity, gas and other facters not effect on
the company performance but aslo company dramatically company growth going high. Company
should grow their business as multinationl and export the product in the other countries.
Thank you!