COMBINED ANALYSIS OF THE COMPANIES IN THE CEMENT INDUSTRY

ANALYSIS ON THE BASIS OF ACCOUNTING POLICIES: 1) ATTOCK CEMENT COMPANY LTD.

Auditors Opinion Basis of Measurement Revenue Recognition Unqualified opinion, that is, financial reporting and financial representation done by the company is free from any material error. These financial statements have been prepared under the historical cost convention except where stated otherwise in the accounting policies below. Revenue is measured at the fair value of the consideration received or receivable Revenue from sale of goods is recognized on dispatch of goods to Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established.

Depreciation Inventory

Depreciation is calculated using the straight-line method on all assets Stocks are valued at lower of cost and net realizable value except goods-in-transit Raw and packing materials, work-in-process and finished goods are valued at the weighted average cost. Cost of work-in-process and finished stocks comprise of direct costs and appropriate portion of production overheads.

2) FLYTING CEMENT LIMITED

Auditors Opinion Basis of Measurement Revenue Recognition Unqualified opinion, that is, financial reporting and financial representation done by the company is free from any material error. . The financial statements have been prepared under historical cost convention Following are the sources of revenue: 1. Revenue from sale of goods is recognized when goods are dispatched. 2. Income from banks is recognized when earned. 3. Gain on sale of property, plant and equipment is recorded when title is transferred in favor of trustee. Depreciation is calculated on systematic basis over the useful life of assets and charged to P&L account on the reducing balance method.

Depreciation

 Inventory

Raw materials, Work-in-process and Finished goods are valued at lower of the weighted average cost and the net realizable value.

ANALYSIS ON THE BASIS OF PROFITABILITY: ATTOCK CEMENT COMPANY LTD

2013 18.56 NET PROFIT MARGIN (%) GROSS PROFIT MARGIN 30.72 (%) OPERATING PROFIT 23.38 MARGIN (%) 2012 13.68 26.78 19.48 2011 8.00 20.23 12.38 2010 12.26 25.53 19.12 2009 17.54 31.83 24.78

FLYTING CEMENT LIMITED

2013 2.18 NET PROFIT MARGIN (%) GROSS PROFIT MARGIN -12.95 (%) OPERATING PROFIT -14.01 MARGIN (%) 2012 -20.16 -22.52 -24.5 2011 -213.57 -177.73 -215.65 2010 -24.8 -22.36 -26.08 2009 -172.2 -175.06 -189.64

Attock Cement Company shows a steady growth as compared to Flying Cement Company. Attock Cement Company shows a positive growth throughout the years under consideration while the other one shows negative trend.