Un-Audited Report

March 31, 2024

Contents
Company Information 02
Directors’ Review 03
Condensed Interim Statement of
Financial Position
05

Condensed Interim Statement of

Profit or Loss (Unaudited)
06

Condensed Interim Statement of

Comprehensive Income (Unaudited)
07
Condensed Interim Statement of
Cash Flows (Unaudited) 08
Condensed Interim Statement of
Changes in Equity (Unaudited)
09
Notes to the Condensed Interim
Financial Statements (Unaudited)
10
Company Information
Islamic Bankers
Bank Alfalah Limited
Bank Islami Pakistan Limited
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
MCB Islamic Bank Limited
Meezan Bank Limited
The Bank of Khyber

Credit Rating
Long-term rating: A+
Short-term rating: A1
Outlook: Stable
by The Pakistan Credit Rating
Agency Limited (PACRA)

Director & Chief Operating Officer

Mr. Yasir Masood
Email: [email protected]
Mr. Ijaz Ahmed

Ms. Natasha Percy Bharucha

External Auditors

Cost Auditors
UHY Hassan Naeem & Co.
Chartered Accountants

Shariah Adivsor
Alhamd Shariah Advisory Services (Pvt.) Limited

Limited
Limited
Limited
Limited

Limited

Limited
Limited

Limited

Development Financial Institution

Pakistan Kuwait Investment Company (Private) Limited

02 Cherat Cement Company Limited

Directors’ Review
The Board of Directors is pleased to present the un-audited financial results of the
Company for the nine months’ period ended March 31, 2024.

Overview
Pakistan’s economy has shown some signs of stability recently. Additionally, the
government's stringent measures against smuggling and illegal currency outflows have
yielded positive outcomes, contributing to exchange rate stability. Formation of the
federal and provincial governments, engagement with IMF to conclude the Stand-By
Arrangement (SBA) facility, and discussions for a new program have improved the
confidence of the business community. Nevertheless, persistent challenges, including
elevated inflation, high interest rates, and continuously rising power costs, are adversely
affecting economic activities. The State Bank of Pakistan has maintained a policy rate of
22%, with any future reductions contingent upon inflationary trends. However, escalation
in tensions in the Middle East may further impact supply chains, and result in increased
oil and commodity prices. Pakistan is especially vulnerable to these supply side shocks.

Third quarter cement dispatches were affected by unexpected heavy rains, the holding
of general elections, and Eid holidays. Despite these adverse conditions, your Company
has been successful in mitigating these conditions by increasing efficiencies and
deleveraging to ensure long-term growth and stability.

During the period under review, domestic demand for cement decreased by 4%.
However, exports surged by 68%, driven mainly due to 80% rise in sea exports.
Furthermore, exports to Afghanistan saw notable improvement by 34%. As a result, the
overall industry grew by 3% during the nine months period.

Dispatches
Comparative dispatch figures of the Company for the current period and that of the
corresponding period last year are as follow:
March March
2024 2023
(in tons)

• Domestic Sales 1,700,935 1,988,513

• Export Sales 273,259 232,188
1,974,194 2,220,701

In quantitative terms, the company's total sales volume dropped by 11%, with
domestic sales declining by 14% and exports rising by 18% from the corresponding
period last year.

March 31, 2024 03

Operating Performance
Sales revenue of the Company increased by a modest 1% despite reduction in cement
dispatches mainly due to increase in sales price as an adjustment to higher input costs.
Furthermore, the cost of sales decreased by 3%, despite a 15% decline in clinker
production. The Company has implemented measures to enhance operational efficiency
by optimising the coal and power mix, to offset the increasing production costs. There
was 20% decrease in finance cost mainly due to scheduled and early repayments of
long-term loans made during the period and lower working capital requirement. Tax
expense during the period increased mainly due to enactment of higher rate of super tax
charge. As a result, the Company posted an after-tax profit of Rs. 4,645 million for the
nine months’ period ended March 31, 2024.

Future Outlook
Pakistan economy is showing signs of gradual improvement, but challenges such as
elevated inflation and high interest rates are impeding the growth. Holding of general
elections and formation of new government has improved investor confidence.
Successful completion of IMF SBA facility and talks for a new program will also help in
improving economic stability and ensuring continuity of reforms process. With inflation
expected to soften going forward, we expect interest rates to decline in the coming
months. This should provide some relief and stimulate the economy. Nonetheless,
high inflation and interest rates will continue to pose challenges for the domestic
demand of cement in the short-term. We hope that once monetary easing begins with
reduction in inflation, government will increase spending on infrastructure
development projects to spur growth which will boost cement demand also. While the
demand of cement in Afghanistan remains strong, exports are affected from time to
time due to administrative and political issues. Potential disruptions in the Middle East
if escalated can adversely affect the world economy and Pakistan in a big way.

Management is proactive in monitoring the situation regularly and adopting the

measures to keep the rising costs under control through initiating cost saving
measures in day-to-day operations. After the period end, we have added 0.54 MW in
our solar generation capacity and are working to further increase it.

Acknowledgment
The management would like to thank all customers, financial institutions, suppliers
and staff members who have been associated with the Company for their support and
cooperation.

On behalf of the Board of Directors

Omar Faruque Azam Faruque

Chairman Chief Executive

Karachi: April 25, 2024 MARCH 31, 2023

04 Cherat Cement Company Limited

Condensed Interim Statement of Financial Position
As at March 31, 2024
March 31, June 30,
Note 2024 2023
(Unaudited) (Audited)
ASSETS (Rupees in ‘000)
NON-CURRENT ASSETS
Fixed assets
Property, plant & equipment 4 28,521,891 28,934,966
Intangible assets 29,359 30,153
28,551,250 28,965,119
Long-term investments 5 490,232 408,134
Long-term loans 47,588 59,364
Long-term deposits 4,631 4,676
542,451 472,174
29,093,701 29,437,293
CURRENT ASSETS
Stores, spare parts and loose tools 7,034,116 6,219,768
Stock-in-trade 1,506,211 2,279,774
Trade debts 1,214,064 903,240
Loans and advances 104,355 72,695
Trade deposits and short-term prepayments 69,323 5,267
Other receivables 46,680 6,196
Short-term investments 6 1,413,697 -
Taxation-net - 217,940
Cash and bank balances 225,108 160,113
11,613,554 9,864,993
TOTAL ASSETS 40,707,255 39,302,286
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised capital
225,000,000 (June 30, 2023: 225,000,000)
ordinary shares of Rs. 10/- each 2,250,000 2,250,000
Share capital 1,942,950 1,942,950
Reserves 22,789,242 18,936,068
24,732,192 20,879,018
NON-CURRENT LIABILITIES
Long-term financings 7 4,510,758 6,374,690
Lease liabilities 37,076 39,214
Long-term security deposits 32,235 29,025
Government grant 923,288 935,890
Deferred taxation 3,471,535 2,875,087
8,974,892 10,253,906
CURRENT LIABILITIES
Trade and other payables 3,235,706 2,879,035
Contract liabilities 221,395 208,393
Accrued mark-up 492,863 438,173
Short-term borrowings 1,559,895 1,573,345
Current maturity of long-term financings 7 262,006 2,943,476
Current portion of lease liabilities 17,242 13,549
Current portion of government grant 36,722 11,260
Taxation-net 1,059,449 -
Unclaimed dividend 71,970 74,984
Unpaid dividend 42,923 27,147
7,000,171 8,169,362
CONTINGENCIES AND COMMITMENTS 8
TOTAL EQUITY AND LIABILITIES 40,707,255 39,302,286
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Azam Faruque Yasir Masood Ijaz Ahmed

Chief Executive Director Chief Financial Officer
March 31, 2024 05
 Condensed Interim Statement of
Profit or Loss (Unaudited)
For the Period ended March 31, 2024

Period ended Quarter ended

March 31, March 31, March 31, March 31,
Note 2024 2023 2024 2023

Turnover - net 9 28,930,644 28,756,440 8,639,594 9,299,028

Cost of sales (19,765,113) (20,462,984) (6,080,784) (6,892,023)

Gross profit 9,165,531 8,293,456 2,558,810 2,407,005

Distribution costs (546,970) (436,692) (208,508) (162,102)

Administrative expenses (370,216) (323,614) (112,216) (114,777)
Other expenses (387,728) (335,778) (111,628) (105,373)
(1,304,914) (1,096,084) (432,352) (382,252)

Other income 329,143 359,932 139,497 235,712

Operating profit 8,189,760 7,557,304 2,265,955 2,260,465

Finance costs (1,132,019) (1,415,590) (321,472) (414,837)

Profit before taxation 7,057,741 6,141,714 1,944,483 1,845,628

Taxation 10 (2,412,337) (1,831,233) (700,451) (573,494)

Net profit 4,645,404 4,310,481 1,244,032 1,272,134

Earnings per share

- basic and diluted Rs. 23.91 Rs. 22.19 Rs. 6.40 Rs. 6.55

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Azam Faruque Yasir Masood Ijaz Ahmed

Chief Executive Director Chief Financial Officer
06 Cherat Cement Company Limited
Condensed Interim Statement of
Comprehensive Income (Unaudited)
For the Period ended March 31, 2024

Period ended Quarter ended

March 31, March 31, March 31, March 31,
2024 2023 2024 2023

Net profit 4,645,404 4,310,481 1,244,032 1,272,134

Other comprehensive income / (loss)

Items that will not be reclassified

subsequently to statement of
profit or loss

Unrealised gain / (loss) on

remeasurement of equity
investments at fair value through
other comprehensive income 82,098 (62,944) 24,897 (44,754)

Total comprehensive income 4,727,502 4,247,537 1,268,929 1,227,380

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Azam Faruque Yasir Masood Ijaz Ahmed

Chief Executive Director Chief Financial Officer
March 31, 2024 07
Condensed Interim Statement of
Cash Flows (Unaudited)
For the Period ended March 31, 2024
March 31, March 31,
Note 2024 2023
(Rupees in ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 7,057,741 6,141,714
Adjustments for:
Depreciation on operating property, plant and equipment 4 1,299,543 1,183,215
Depreciation on right-of-use assets 4.3 13,626 12,861
Amortisation 794 1,942
Gain on disposals of operating property, plant and equipment (17,828) (5,260)
Unrealised gain on short-term investments at fair value
through profit or loss 6 (43,697) (11,661)
Interest income on financial asset at amortised cost (4,216) (4,704)
Gratuity expense 87,971 -
Finance costs - net 1,132,019 1,415,590
Share of profits from joint venture - Madian Hydro Power Limited - (5,675)
Exchange gain (115) (97)
Dividend income (10,820) (4,684)
2,457,277 2,581,527
9,515,018 8,723,241
(Increase) / decrease in current assets
Stores, spare parts and loose tools (814,348) (271,463)
Stock-in-trade 773,563 (934,746)
Trade debts (310,824) (251,229)
Loans and advances (31,660) 134,071
Trade deposits and short-term prepayments (64,056) (27,906)
Other receivables (40,484) (33,885)
(487,809) (1,385,158)
9,027,209 7,338,083
Increase / (decrease) in current liabilities
Trade and other payables 338,015 700,339
Contract liabilities 13,002 (2,794)
351,017 697,545
Cash generated from operations 9,378,226 8,035,628
Income tax paid (538,500) (254,564)
Long-term loans and deposits - net 19,247 23,368
Gratuity paid (69,200) -
Net cash generated from operating activities 8,789,773 7,804,432
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to operating property, plant and equipment (854,869) (1,298,347)
Restricted bank balance - (379,968)
Proceed from disposals of operating property, plant and equipment 32,722 15,846
Dividend received 10,820 4,684
Short-term investments - net 6 (1,370,000) (500,000)
Net cash used in investing activities (2,181,327) (2,157,785)
CASH FLOWS FROM FINANCING ACTIVITIES
Long-term financings - net (4,532,542) (2,443,357)
Lease rentals paid (17,218) (15,419)
Dividend paid (861,566) (572,896)
Finance costs paid - net (1,118,675) (1,331,388)
Net cash used in financing activities (6,530,001) (4,363,060)
Net increase in cash and cash equivalents 78,445 1,283,587
Cash and cash equivalents as at the beginning of the period (1,413,232) (3,004,721)
Cash and cash equivalents as at the end of the period 11 (1,334,787) (1,721,134)
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Azam Faruque Yasir Masood Ijaz Ahmed

Chief Executive Director Chief Financial Officer
08 Cherat Cement Company Limited
Condensed Interim Statement of
Changes in Equity (Unaudited)
For the Period ended March 31, 2024

Reserves
Revenue Reserves Other Components
Capital Reserves of Equity
Issued,
Subscribed
and Actuarial loss
Unrealised Total
Paid-up Share General Unappropriated on defined gain / (loss) on Total
premium Other benefit plan -
Capital reserves profit net of deferred equity Reserves
tax investments

(Rupees in ‘000)

Balance as at July 01, 2022 1,942,950 1,047,658 50,900 420,000 13,762,994 (68,004) 159,824 15,373,372 17,316,322

Final cash dividend for the year ended

June 30, 2022 @ Rs. 3.00/- per share - - - - (582,885) - - (582,885) (582,885)

Net profit - - - - 4,310,481 - - 4,310,481 4,310,481

Other comprehensive loss - - - - - - (62,944) (62,944) (62,944)
Total comprehensive income / (loss) - - - - 4,310,481 - (62,944) 4,247,537 4,247,537

Balance as at March 31, 2023 1,942,950 1,047,658 50,900 420,000 17,490,590 (68,004) 96,880 19,038,024 20,980,974

Balance as at July 01, 2023 1,942,950 1,047,658 50,900 420,000 17,292,598 (37,227) 162,139 18,936,068 20,879,018

Final cash dividend for the year ended

June 30, 2023 @ Rs. 3.00/- per share - - - - (582,885) - - (582,885) (582,885)

Interim cash dividend for the period ended

December 31, 2023 @ Rs. 1.50/- per share - - - - (291,443) - - (291,443) (291,443)

Net profit - - - - 4,645,404 - - 4,645,404 4,645,404

Other comprehensive income - - - - - - 82,098 82,098 82,098
Total comprehensive income / (loss) - - - 4,645,404 - 82,098 4,727,502 4,727,502

Balance as at March 31, 2024 1,942,950 1,047,658 50,900 420,000 21,063,674 (37,227) 244,237 22,789,242 24,732,192

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Azam Faruque Yasir Masood Ijaz Ahmed

Chief Executive Director Chief Financial Officer
March 31, 2024 09
Notes to the Condensed Interim
Financial Statements (Unaudited)
For the Period ended March 31, 2024

1. CORPORATE INFORMATION

Cherat Cement Company Limited (the Company) was incorporated in Pakistan as a public company
limited by shares in the year 1981. The Company is listed on the Pakistan Stock Exchange Limited.
Its main business activities are manufacturing, marketing and sale of cement. The registered office
of the Company is situated at Village Lakrai, District Nowshera, Khyber Pakhtunkhwa province.

2. BASIS OF PREPARATION

2.1 These condensed interim financial statements have been prepared in accordance with the accounting
and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and
reporting standards as applicable in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the
International Accounting Standards Board (IASB) as notified under the Companies Act, 2017
(the Act); and

- Provisions of and directives issued under the Act.

Where the provisions of and directives issued under the Act differ with the requirements of IAS 34,
the provisions of and directives issued under the Act have been followed.

2.2 These condensed interim financial statements do not include all the information and disclosures
required in the annual financial statements and should be read in conjunction with the Company’s
annual financial statements for the year ended June 30, 2023.

3. ACCOUNTING POLICIES

3.1 The accounting policies and methods of computation adopted for the preparation of these
condensed interim financial statements are the same as those applied in the preparation of the
annual financial statements for the year ended June 30, 2023, except for the adoption of
amendments to approved accounting standards which became effective for the current period as
disclosed in note 3.2 to these condensed interim financial statements.

3.2 Amendments to approved accounting standards adopted during the period

The Company has adopted the following amendments to International Financial Reporting
Standards (IFRSs) which became effective for the current period:

IAS 8 Definition of Accounting Estimates (Amendments)

IAS 1 and
IFRS Practice Disclosure of Accounting Policies (Amendments)
Statement 2
IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments)
IAS 12 International Tax Reform—Pillar Two Model Rules (Amendments)

The adoption of above amendments to IFRSs did not have any material impact on the Company's
condensed interim financial statements.

10 Cherat Cement Company Limited

 March 31, June 30,
Note 2024 2023
(Unaudited) (Audited)
4. PROPERTY, PLANT AND EQUIPMENT (Rupees in ‘000)

Opening Net Book Value (NBV) 26,566,937 24,164,146

Additions during the period / year - at cost 4.1 658,416 4,015,917
27,225,353 28,180,063
Depreciation charged during the period / year (1,299,543) (1,601,838)
Disposals for the period / year - at NBV (14,894) (11,288)
Closing NBV 25,910,916 26,566,937

Capital work-in-progress 4.2 2,564,173 2,320,362

Right-of-use assets 4.3 46,802 47,667
28,521,891 28,934,966

4.1 Additions during the period / year

Freehold land - 774,045

Building on leasehold land 205,152 239,565
Plant and machinery 232,745 2,631,813
Power and other installations 1,648 78,652
Furniture and fittings 6,282 15,415
Quarry, factory and laboratory equipment 18,620 61,295
Motor vehicles 155,869 176,310
Office equipment 23,858 9,516
Computers 14,242 29,306
658,416 4,015,917

4.1.1 Additions and depreciation on property, plant and equipment during the period ended March 31,
2023 were Rs. 423.05 million and Rs. 1,183.22 million respectively.
March 31, June 30,
Note 2024 2023
(Unaudited) (Audited)
4.2 Capital work-in-progress (Rupees in ‘000)

Opening balance 2,320,362 3,385,370

Capital expenditure incurred / advances made
during the period / year 902,227 2,950,909
3,222,589 6,336,279
Transferred to operating fixed assets (658,416) (4,015,917)
Closing balance 4.2.1 2,564,173 2,320,362

March 31, 2024 11

 March 31, June 30,
2024 2023
(Unaudited) (Audited)
4.2.1 Capital work-in-progress (Rupees in ‘000)

Freehold land 72,630 56,456

Building on leasehold land 155,162 147,438
Plant and machinery 1,599,580 1,391,881
Power and other installations 8,134 12,087
Furniture and fittings 15,709 6,604
Quarry, factory and laboratory equipment 75,490 68,851
Motor vehicles 3,034 850
Office equipment 476 5,982
Computers 714 213
Intangibles 633,244 630,000
2,564,173 2,320,362

4.2.2 During the period, borrowing costs have been capitalised amounting to Rs. 47.36 million
(June 30, 2023: Rs. 155.09 million) using capitalization rate 8.14% (June 30, 2023: 7.55%) on
account of long-term financing obtained.
March 31, June 30,
2024 2023
(Unaudited) (Audited)
4.3 Right-of-use assets (Rupees in ‘000)

Opening balance 47,667 18,786

Additions during the period 12,761 45,697
Depreciation for the period / year (13,626) (16,816)
Closing balance 46,802 47,667

4.3.1 The Company has recognised right-of-use assets in respect of sales offices and head office under
rental agreements.
March 31, June 30,
Note 2024 2023
(Unaudited) (Audited)
5. LONG-TERM INVESTMENTS (Rupees in ‘000)

Investment in related parties

At fair value through other comprehensive income 5.1 482,150 400,052
Interest in a Joint Venture - UniEnergy Limited 8,082 8,082
490,232 408,134

5.1 At fair value through other comprehensive income

Cherat Packaging Limited

3,606,524 (June 30, 2023: 3,606,524) fully paid ordinary
shares of Rs. 10/- each. 446,487 351,239

Mirpurkhas Sugar Mills Limited

996,186 (June 30, 2023: 996,186) fully paid ordinary
shares of Rs. 10/- each. 35,663 48,813
482,150 400,052

12 Cherat Cement Company Limited

 March 31, June 30,
Note 2024 2023
(Unaudited) (Audited)
6. SHORT-TERM INVESTMENTS (Rupees in ‘000)

Investments at fair value through profit or loss

- mutual funds 1,370,000 -
Unrealised fair value gain for the period / year 43,697 -
Fair value at the end of the period / year 1,413,697 -

7. LONG-TERM FINANCINGS – secured

Islamic banks
Syndicated Long-Term Finance Loan – Line - III 7.1 2,250,000 6,250,000
Islamic Finance Facility for Renewable Energy 996,536 1,108,614
3,246,536 7,358,614
Conventional banks
Captive Power Plant Loan 7.1 - 440,000
Temporary Economic Refinance Facility 1,526,228 1,519,552
4,772,764 9,318,166

Current maturities (262,006) (2,943,476)

4,510,758 6,374,690

7.1 In view of positive cash flows during the period, the Company has made an early full repayment of
Captive Power Plant loan and partial early repayments of Syndicated Long-Term Finance loan
Line - III.

8. CONTINGENCIES AND COMMITMENTS

8.1 Contingencies

There are no material changes in the status of contingencies as reported in the annual financial
statements for the year ended June 30, 2023.

March 31, June 30,

2024 2023
(Unaudited) (Audited)
8.2 Commitments (Rupees in ‘000)

Letters of credit - Islamic and Conventional banks 281,898 644,540

Letters of guarantee - Islamic and Conventional banks 1,204,995 1,147,601

9. TURNOVER - NET

Includes export sales amounting to Rs. 3,350.86 million (March 31, 2023: Rs. 2,680.69 million).

March 31, 2024 13

 Period ended Quarter ended
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
10. TAXATION

Current (1,846,276) (222,415) (1,244,311) (67,374)

Prior 30,387 38,633 - -
Deferred (596,448) (1,647,451) 543,860 (506,120)
(2,412,337) (1,831,233) (700,451) (573,494)

10.1 Provision for current taxation is based on taxable income at the current rates of taxation. Income
subject to final tax has been taxed accordingly.

10.2 As reported in note 34.3 to the annual audited financial statements of the Company for the year
ended June 30, 2023 pertaining to the Company's tax credit U/S 65B of the Ordinance, the
Honorable Peshawar High Court (PHC) has decided the case in favor of the Company vide order
dated September 07, 2023 whereby the PHC has allowed the Company to claim tax credit @ 10%
with certain conditions. However, the department has filed CPLA against the judgement of PHC
before the Honorable Supreme Court of Pakistan which is pending for adjudication. Keeping in view
the inherent uncertainties involved in such matters, the management, as a matter of prudence, has
not recognized this amount as tax income in these condensed interim financial statements.

10.3 As fully explained in note 34.6 to the annual audited financial statements, during the year, the
Company has challenged the levy of super tax under section 4C of the Income Tax Ordinance,
2001 as amended vide Finance Act, 2023, and an interim stay has been granted by the PHC to file
income tax return for the tax year 2023 by excluding super tax amounting to Rs. 470.26 million
subject to deposit of post-dated cheque. Keeping in view the inherent uncertainties involved in
such matters, the management, as a matter of prudence, has maintained a provision for this
amount in these condensed interim financial statements.
March 31, March 31,
2024 2023
(Unaudited) (Unaudited)
11. CASH AND CASH EQUIVALENTS (Rupees in ‘000)

Cash and bank balances 225,108 1,558,350

Less: restricted bank balance - (1,375,238)
Short-term borrowings (1,559,895) (1,904,246)
(1,334,787) (1,721,134)

12. FINANCIAL RISK MANAGEMENT AND FAIR VALUE DISCLOSURES

These condensed interim financial statements do not include all financial risk management
information and disclosures which are required in the annual financial statements and should be
read in conjunction with the Company's annual financial statements for the year ended June 30,
2023. There have been no changes in any risk management policies since the year end.

12.1 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

14 Cherat Cement Company Limited

The carrying values of all financial assets and liabilities reflected in the financial statements
approximate fair values.

The following table shows assets recognised at fair value, analysed between those whose fair
value is based on:

Level 1: Quoted prices in active markets for identical assets or liabilities,

Level 2: Those involving inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly (as prices) or indirectly (derived from prices); and

Level 3: Those whose inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
March 31, 2024 (Unaudited)
Carrying amount Fair value

Fair value
through Fair value
Total Level 1 Level 2 Level 3
statement through
of profit or OCI
loss
Note (Rupees in ‘000)

Financial assets measured

at fair value

Long-term investments 5.1 - 482,150 482,150 482,150 - -

Short-term investments 6 1,413,697 - 1,413,697 1,413,697 - -
1,413,697 482,150 1,895,847 1,895,847 - -

June 30, 2023 (Audited)

Carrying amount Fair value

Fair value
through Fair value
Total Level 1 Level 2 Level 3
statement through
of profit or OCI
loss
(Rupees in ‘000)

Financial assets measured

at fair value

Long-term investments 5.1 - 400,052 400,052 400,052 - -

Short-term investments 6 - - - - - -
- 400,052 400,052 400,052 - -

During the year, there were no transfers between level 1 and level 2 fair value measurements, and
no transfers into and out of level 3 fair value measurement.

Financial instruments which are tradeable in an open market are revalued at the market prices
prevailing on the statement of financial position date.

March 31, 2024 15

13. TRANSACTIONS WITH RELATED PARTIES

Related parties of the Company comprise of associated companies, directors, retirement funds,
and key management personnel of the Company. Amounts due from / to related parties are
disclosed in respective notes to these financial statements. The Company enters into transactions
with related parties on agreed terms as approved by the Board of Directors. Transactions with
related parties other than those disclosed elsewhere in the financial statements, are as follows:

Period ended
March 31, March 31,
2024 2023
(Unaudited) (Unaudited)

Relationship Nature of transactions (Rupees in ‘000)

Associates / Purchases 2,033,376 2,594,494

related parties Sale of goods 56 -
Royalty and excise duty 302,021 332,860
Purchase of fixed assets 20,323 13,741
Services received 214 10,587
IT support charges 22,508 18,233
Dividend received 10,820 4,684
Dividend paid 268,989 181,455
Insurance premium paid 72,713 70,000
Remuneration to key management personnel 978,111 867,938
Contribution to staff provident and gratuity funds 134,603 106,842

13.1 In addition, certain administrative expenses are being shared amongst the group companies.

14. OPERATING SEGMENTS

These condensed interim financial statements have been prepared on the basis of a single
reportable segment.

15. DATE OF AUTHORISATION

These condensed interim financial statements were authorised for issue on April 25, 2024 by the
Board of Directors of the Company.

16. GENERAL

Figures have been rounded off to the nearest thousand Rupees, unless otherwise stated.

Azam Faruque Yasir Masood Ijaz Ahmed

Chief Executive Director Chief Financial Officer
16 Cherat Cement Company Limited