FAUJI CEMENT COMPANY LIMITED COVER STORY
Transformation is essential, as nature manifests, for us. A particle of sand when given the right environment transforms into a pearl, a seed with nothing in it but with purpose and intention grows into a huge tree.
Transformation is a glorious phenomenon that helps us to survive and thrive. In an organization, transformation plays a critical part in enabling it to operate efficiently, supporting its business strategy. Transformation for FCCL means growing its capacity, adapting to new technologies, being socially and environmentally responsible and be ready to face future challenges strategically. Transformation for combating climate change and moving towards sustainable growth including working towards green energy.
ABOUT THIS REPORT
The Annual Report is designed to assist the readers to have a better understanding of the different aspects of our business by providing information detailing the Economy in general and Cement Industry in particular, company's performance in the outgoing year, and the outlook of the next year.. It encompasses the financial analysis, overview of governance, risk management framework & strategy, and resource allocation. The report also includes a comprehensive explanation of our business model supported by inputs, capitals invested, outputs, and outcomes. The report is divided into the following sections:
- Organizational Overview and External Environment
- Business Model and SWOT Analysis
- Strategy and Resource Allocation
- Risks and Opportunities
- Governance and Forward-Looking Statement
- Performance and Position
- Stakeholders Relationship and Engagement
- Sustainability and Corporate Social Responsibility
- Financial Statements
- Shareholders' information
SCOPE AND BOUNDARY
The report covers the period from 01 July 2021 to 30 June 2022, with the inclusion of prominent happenings during the year, the biggest of which is the Amalgamation of Askari Cement Limited with and into Fauji Cement and subsequent developments from the year end to the date of this report. Audited financial statements of the respective years have been utilized in order to derive vital financial information, and the financial statements presented are in compliance with the applicable IFRSs and directives issued under the Companies Act, 2017.
Presentation of information including the Chairman's Review, CEO's Review, Directors' Report, Audit Committee's Report and the Report on Compliance of Code of Corporate Governance, complies with the Companies Act, 2017, the Code of Corporate Governance Regulations and other reputable governance practices.
EXTERNAL ASSURANCE/REVIEWS
Financial statements are duly audited, and the Statement of Compliance with Code of Corporate Governance is accordingly reviewed by external auditors M/s KPMG Taseer Hadi & Co. (Chartered Accountants). FCCL will continue to strive to ensure compliance with the best practices in corporate reporting while maintaining its integrity, in order to provide truthful and authentic visibility of our business to all of our stakeholders.
We wish our readers a pleasant and informed read!
ANNUAL REPORT 2022 1
CONTENTS
ORGANISATIONAL OVERVIEW & EXTERNAL ENVIRONMENT
Chairman's Review | 6 |
Chief Executive / Managing Director's Review | 8 |
Year at a Glance | 10 |
Highlights 2022 | 11 |
Geographical Locations | 12 |
Our Markets | 13 |
Our Products | 14 |
Vision | 16 |
Mission | 16 |
Cultural, Ethics & Code of Conduct | 18 |
Core Values | 20 |
Ownership, Operating Structure and Investments | 22 |
Our Journey | 24 |
Profile of Directors | 28 |
Senior Management | 34 |
Company Information | 36 |
Organizational Chart | 38 |
Human Capital | 40 |
Effect of Seasonality on Business | 41 |
Significant Changes from Prior Years | 41 |
Position within the Value Chain | 42 |
Significant Factors effecting | |
the External Environment | 44 |
Composition of Local versus Imported Materials | 46 |
Competitive Landscape and Market Positioning | 47 |
Awards and Certifications | 48 |
BUSINESS MODEL & SWOT ANALYSIS | |
Our Business Model | 52 |
SWOT Analysis | 54 |
STRATEGY & RESOURCE ALLOCATION
Strategic Objectives and | |
Strategies to achieve the Objectives | 58 |
Resource Allocation Plan to | |
implement the Strategy | 60 |
Financial Capital Structure | 60 |
Technological Effect | 61 |
Processes of Strategic Decision Making | 62 |
Risk and Mechanism for | |
Addressing Integrity and Ethical Issues | 63 |
KPI'S to Measure the Achievement Against | |
Strategic Objectives | 64 |
Cash Flow Strategy and Liquidity Management | 65 |
Significant Plans and Decisions | 65 |
Significant Change in Objectives and | |
Strategies from Prior Year | 65 |
RISK AND OPPORTUNITIES | |
Statement of Risks and Opportunities | 68 |
Risk Management Framework and | |
Risk Management Methodology | 71 |
Initiatives Taken by the Company in Promoting | |
and Enabling Innovation | 72 |
Robust Assessment of Principle Risk by BOD | 73 |
GOVERNANCE | |
Composition of the Board | 82 |
Meeting of the BOD | 82 |
Ethics and Compliance | 84 |
Salient Aspects of Company's Control | |
and Reporting Systems | 84 |
Directors Training Program | 84 |
Evaluation of the Board's Performance | 84 |
Whistle Blowing Policy | 87 |
Corporate Social Responsibility | 91 |
Health and Safety Environment | 102 |
Our investment | 104 |
Expansion Projects | 106 |
Future Outlook | 107 |
Human Capital | 109 |
Statement of Compliance | |
Independent Auditors' Review Report | 114 |
Board Committees | 116 |
Report of the Audit Committee | 121 |
STAKEHOLDERS' RELATIONSHIP & | |
ENGAGEMENT | |
How We Identify Stakeholders | 126 |
Stakeholders Engagements Process | 128 |
Encouragement of Minority Shareholders | |
to Attend the General Meetings | 129 |
Investors Relation Section | |
of Fauji Cement's Website | 129 |
Issues Raised at Last AGM | 129 |
Stakeholders' Engagement Policy | 130 |
Corporate Briefing Session | 130 |
Highlights About | |
Redressal of Investors' Complaints | 130 |
Shareholders' Information | 130 |
Statement of Value addition | 131 |
2 Fauji Cement Company Limited
IT GOVERNANCE AND CYBERSECURITY
IT Governance Policy
Empowering Our Employees
Risk Management and Business Continuity
Information Technology and Cyber Threats Risk
Statement of Comprehensive Income | 187 | |
Statement of Cash Flows | 188 | |
Statement of Change in Equity | 189 | |
134 | Notes to the Financial Statements | 190 |
Specific Disclosures of the Financial Statements | 247 | |
134 | ||
137 SHAREHOLDERS' INFORMATION
137
ENVIRONMENTAL SUSTAINABILITY | Pattern of Shareholding | 249 | |
Categories of Shareholdings Required | |||
REPORT | under CCG Regulations | 255 | |
Financial Calendar | 256 | ||
Environmental Sustainability Report | 140 | Categories of Shareholders | 257 |
Environment Protection | 143 | Notice of Annual General Meeting | 258 |
PERFORMANCE & POSITION | Form of Proxy | 265 | |
URDU SECTION | 266 | ||
Operating Results | 150 | ||
Summary of Cash Flows | 150 | ||
Economic Value Addition | 151 | ||
Free Cash Flows | 151 | ||
Statement of Cash Flows Direct Method | 152 | ||
Quarter Wise Profit or Loss Analysis | 153 | ||
Key Ratio Analysis | 154 | ||
Dupont Analysis | 156 | ||
Graphical Presentation | |||
of Financial Information | 158 | ||
Notes on Analysis | 161 | ||
Statement of | |||
Financial Position Composition | 162 | ||
Profit or Loss Composition | 163 | ||
Horizontal Analysis | |||
- Statement of Profit or Loss | 164 | ||
Horizontal Analysis | |||
- Statement of Financial Position | 166 | ||
Vertical Analysis | |||
- Statement of Profit or Loss | 168 | ||
Vertical Analysis | |||
- Statement of Financial Position | 170 | ||
Share Price Sensitivity | 172 | ||
Segmental Review of Business | 172 | ||
Methods and Assumptions used | |||
in Complaining Indicators | 174 | ||
Key Performance Indicators | 175 | ||
STRIVING FOR EXCELLENCE IN | |||
FINANCE REPORTING | |||
Independent Auditors' Report | 179 | ||
Statement of Financial Position | 184 | ||
Statement of Profit or Loss | 186 |
ANNUAL REPORT 2022 3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Fauji Cement Company Limited published this content on 30 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 October 2022 16:11:41 UTC.
