A PROPOSAL TO ANALYZE FINANCIAL STATEMENTS FOR

3 YEARS OF LUCKY CEMENT LIMITED AND ATTOCK

CEMENT PAKISTAN LIMITED

Introduction:

Lucky Cement Limited is the largest cement producer in Pakistan. Its shares are traded on the
Karachi Stock Exchange, and are part of the KSE 100 Index. Its symbol in the Karachi Stock
Exchange (KSE) is 'LUCK'. The company's highest share price was PKR 147.00, on 18 April
2008. Lucky Cement Limited was founded in 1996 by Tabba. The company initially started with
factories in the Pezu district of the North West Frontier Province (N.W.F.P). It now, also, owns a
factory in Karachi. Lucky Cement Limited has been sponsored by one of the largest business
groups in Pakistan, the Yunus Brothers Group (YB Group), based in Karachi and has grown
remarkably over the last 50 years. The YB Group is engaged in diversified manufacturing
activities including textiles, spinning, weaving, processing, finishing, stitching and power
generation.With production facilities in Pezu (Production capacity: 13,000 Tons per day) as well
as in Karachi (Production capacity: 12,000 tons per day), it has the tendency to become the hub
of cement production in Asia.

Attock Cement Pakistan Limited (ACPL) is a public limited company, listed on the Karachi
Stock Exchange since June 2002. Main business of the company is manufacturing and sales of
cement. ACPL is part of the Pharaon Group, which in addition to investment in cement industry
has diversified stakes in Pakistan mainly in the oil and gas sector, power and real estate sector.
ACPL is a member of Pharaon Group of Companies operating in Pakistan. ACPL's project was
conceived in 1981. The project is a Pak-Saudi venture and has involved an initial capital outlay
of around Rs.1.5 billion with a foreign exchange component of around US$ 45 million. ACPL's
manufacturing plant is located in Tehsil Hub, District Lasbela, Baluchistan, at a distance of about
45 kilometers north west of Karachi. With continuous growth in cement demand both in local
and regional markets, the company put up another line of 3,300 TPD of clinker in 2006-2007 at a
total investment of US $ 61 million. With this additional line the total clinker capacity of the
company has reached 1,710,000 MT of clinker per annum.
OBJECTIVE:
To analyze and compare the performance of Lucky Cement Limited and Attock Cement Pakistan
Limited from 2008 – 2010 using the following sources and ratios:

Sources:
The Annual Reports for the 2 companies for 3 years i.e. 2008-2010, will be the basis for
analyzing the financial performance. Furthermore information available about the companies on
the company websites will be used in our report. Regulatory information and current trends in
the cement industry will be gathered from the Securities and Exchange Commission of Pakistan
website.

Ratios:

Profitability Measures:
1. Return on Equity
2. Return on Assets
3. Return on Capital
4. EVA
5. Operating Profit Margin

Efficiency Measures:
1. Asset Turnover
2. Inventory Turnover
3. Receivable Turnover

Leverage Measures:
1. Long term Debt ratio
2. Long term Debt - Equity ratio
 3. Total Debt ratio
4. Times Interest earned
5. Cash Coverage ratio

Liquidity Measures:
1. Net Working Capital to Total Assets
2. Current ratio
3. Quick ratio
4. Cash ratio

Growth Measures:
1. Payout ratio
2. Sustainable Growth

Value and Value Added:

1. Market capitalization
2. Market Value Added
3. Market to Book ratio
INTRODUCTION TO BUSINESS FINANCE

OUTLINE OF THE TERM REPORT

ASMA FAZAL 9380

NIGHAT MANNAN 8792

SAJIDA KANJI 7510

SIDRAH WAHEED 8963