DANDOT CEMENT
COMPANY LIMITED
DIRECTORS’ REPORT TO THE MEMBERS
Your Directors are pleased to
present the accounts ( un-audited ) of the Company for the second quarter ended
December 31, 2005.
The comparative data for production of clinker
& cement and dispatches of cement for the second quarter is summarized hereunder:
-
|
|
|
|
Second quarter ended |
|
Half year ended |
||||
|
|
|
|
Dec. 2005 |
|
Dec. 2004 |
|
Dec. 2005 |
|
Dec. 2004 |
|
|
|
|
( Tonnes ) |
|
( Tonnes ) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Clinker
Production |
|
76,054 |
|
103,796 |
|
158,660 |
|
205,053 |
|
|
Cement : |
|
|
|
|
|
|
|
|
|
|
|
Production |
|
85,054 |
|
107,071 |
|
172,721 |
|
212,041 |
|
|
Dispatches |
|
84,734 |
|
105,453 |
|
172,426 |
|
209,203 |
During the period under review, the
decrease in operating performance of the Company is due to plant maintenance
carried out in the months of July and October, 2005.In general, the performance of the cement plant remained satisfactory.
Likewise, a summary of the Company’s financial
results for the Half year ended December, 2005 along with the comparative data
of the preceding comparable period is provided here under:
|
|
|
|
Second quarter ended |
|
Half year ended |
||||
|
|
|
|
Dec. 2005 |
|
Dec. 2004 |
|
Dec. 2005 |
|
Dec. 2004 |
|
|
|
|
( Rs. In Million ) |
|
( Rs. in Million ) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
58.5 |
|
56.8 |
|
116.8 |
|
102.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit |
|
42.4 |
|
40.2 |
|
85.9 |
|
71.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
before taxation |
|
26.6 |
|
20.3 |
|
63.0 |
|
36.9 |
|
|
Taxation |
|
|
57.4 |
|
(125.3) |
|
58.8 |
|
(123.8) |
|
Net
Profit / (loss) |
|
|
|
|
|
|
|
|
|
|
after taxation |
|
(30.9) |
|
145.6 |
|
4.2 |
|
160.8 |
|
The Company’s gross, operating and
before taxation profits improved from preceding period, inspite of the reduced
operating performance as discussed above. However in the period under review
the Company recorded deferred tax charge amounting to Rs. 55.6 million, as
compared to reversal of deferred tax of Rs. 126.9 million in the corresponding
comparable period, which resulted in the reduced profit after taxation as
compared to preceding period.
The Company during the current quarter
started its export of cement to
We are confident that the cement
industry shall continue its impressive growth rate due to the prevailing aggressive business environment in the country in
general and construction & large-scale manufacturing sectors in particular.
The Board of Directors appreciates the
efforts and devotion of the employees, the executives and the entire team of
management and anticipates that they will contribute towards the enhancement of
the productivity and well being of the Company in future with greater zeal
& spirit. The Board extends its gratitude to the financial institutions for
their valued support and co-operation for the Company’s prosperity.
For
and on behalf of the Board
ABDUR
RAFIQUE KHAN
Chief Executive