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1
FAUJI CEMENT COMPANY
LIMITED
Company Introduction
A longtime leader in the cement manufacturing industry, Fauji Cement Company,
headquartered in Islamabad, operates a cement plant at Jhang Bahtar, Tehsil Fateh
Jang, District Attock in the province of Punjab. The company has a strong and
longstanding tradition of service, reliability, and quality that reaches back more than
10 years. Sponsored by Fauji Foundation the Company was incorporated in
Rawalpindi in 1992.
The cement plant operating in the Fauji Cement is one of the most efficient and best
maintained in the country and has an annual production capacity of 1.165 million tons
of cement. The quality portland cement produced at this plant is the best in the
Country and is preferred the construction of highways, bridges, commercial and
industrial complexes, residential homes, and a myriad of other structures needing
speedy strengthening bond, fundamental to Pakistan's economic vitality and quality of
life.
Company History
Fauji Cement Company Limited was sponsored by Fauji Foundation and incorporated
as a public limited company on 23 November 1992. It obtained the Certificate of
Commencement of Business on 22 May 1993. The company has been setup with
primary objective of producing and selling Ordinary Portland Cement. For the
purpose of selection of sound process technology, state of the art equipment, civil
design and project monitoring, Local and Foreign Consultants were engaged.
The company entered into a contract with World renowned cement plant
manufacturers M/s F.L. Smith to carry out design , engineering, procurement,
manufacturing, delivery, erection, installation, testing and commissioning at site of a
new, state of the art, cement plant including all auxiliary and ancillary equipment,
complete in all respects for the purpose of manufacturing a minimum of 3,000 tdp
clinker and corresponding quantity of Ordinary Portland Cement as per
Pakistan/British Standard Specifications.
The contract came into force on January, 1, 1994. Physical work on the project started
in August 1994. Commissioning activities started in May 1997 generally remained
smooth and trouble free, which enabled first batch of clinker production on 26
September 1997 followed by cement production in November 1997. Subsequently in
2005, the Plant Capacity has been raised to 3,700 tons of clinker per day i.e. 3,885
tons of cement per day.
2
Corporate Profile
Board of Directors
Lt Gen Syed Arif Hasan, HI (M) (Retd) Chairman
Lt Gen Javed Alam Khan, HI (M) (Retd) Chief Executive
Mr. Qaiser Javed Director
Mr. Riyaz H. Bokhari, IFU Director
Brig Arif Rasul SI (M) (Retd) Qureshi, Director
Brig Rahat Khan, SI (M) (Retd) Director
Dr. Nadeem Inayat Director
Brig Liaqat Ali (Retd) Director
Brig Munawar Ahmed Rana (Retd) Director
Brig Shabbir Ahmed (Retd) Secretary
Audit Committee
Technical Committee
3
Mission Statement
FCCL while maintaining its leading position in quality of cement and through greater
market outreach will build up and improve its value addition with a view to ensuring
optimum returns to the shareholders.
Our Vision
To transform FCCL into a role model cement manufacturing Company fully aware of
generally accepted principles of corporate social responsibilities engaged in nation
building through most efficient utilization of resources and optimally benefiting all
stake holders while enjoying public respect and goodwill.
Our Objective
The company has been set up with the primary objective of producing and selling
ordinary Portland cement. The finest quality of Cement is available for all type of
customers whether for Dams, Canals, industrial structures, highways, commercial or
residential needs using latest state of the art dry process Cement manufacturing
process.
Our Values
Customers: We listen to our customers and improve our product to meet their present
and future needs.
People: Our success depends upon high performing people working together in a safe
and healthy work place where diversity, development and team work are valued and
recognized.
Accountability: We expect superior performance and results. Our leaders set clear
goals and expectations, are supportive and provide and seek frequent feed back.
4
Financial Responsibility: We are prudent and effective in the use of the resources
entrusted to us.
Product
Ordinary Portland Cement
Clinker 94-95%
Gypsum 5-6%
Quality Policy
• EMPHASIS ON 100% CUSTOMER SATISFACTION.
• 100 % EFFECTIVE UTILIZATION OF PLANT CAPACITIES.
• EMPHASIS ON 100% TOP QUALITY HUMAN RESOURCES.
• EMPHASIS ON 100% QUALITY CULTURE.
Horizontal Analysis
7
Selling and Distribution Expenses
Salary, wages and benefits 100.00% 150.29 138.70 267.62 258.40
Rent Rate & Taxes 100.00% 94.62 96.94 91.98 111.91
Communication Expenses 100.00% 161.01 225.41 206.79 249.87
Advertisement and sales Promotion 100.00% 132.18 120.96 165.00 116.81
Other selling expenses 100.00% 106.35 149.69 134.91 468.98
Total 100.00% 135.96 142.07 211.06 270.66
Operating Profit 100.00% 556.68 799.78 1635.37 753.96
Add Other income
Interest on Bank Accounts 100.00% 140.06 56.23 509.20 1001.90
Interest on Long Term Advances 100.00% 150.63 43.04 170.89 170.89
Gain on Disposal of Fixed Assets 100.00% 30.02 377.28 103.34 7.94
Others 100.00% 8307.11 662.69 1849.75 1401.27
Total 100.00% 501.28 131.54 508.08 865.90
Less Financial charges
Fee and charges on Loans 100.00% 347.03 315.63 14.94 14.94
Interest on Long term loans 100.00% 18.67 57.25 82.73 65.35
Interest on short term loans 100.00% 0.00 102.52 25.79 18.35
Others 100.00% 90.35 24.03 5.52 3.48
Total 100.00% 44.07 49.55 57.03 44.69
Less Amortization of Differed Cost 100.00% 398.91 0.00 0.00 0.00
Profit/ Loss Before Taxation 100.00% 46.45 -144.93 -339.43 -150.50
Less Taxation 100.00% 7286.78 3248.99 7502.63 1854.34
Profit/loss after Taxation 100.00% -60.87 -98.92 -233.25 -125.24
8
Vertical Analysis
10
FAUJI CEMENT COMPANY
BALANCE SHEET HORIZONTAL ANALYSIS
As On 2003 To 2007
11
Ratio Analysis
Short Term Liquidity/ Short Term Debt Paying
Ability
Short term liquidity ratios measure the short term debt paying ability of a company. If
the entity cannot maintain debt paying ability it will not be able to maintain a long
term debt paying ability nor it will be able to satisfy its stockholders. When analyzing
the short term debt paying ability of the firm, we find a close relationship between the
current assets and the current liabilities. Generally, the current liabilities will be paid
with cash generated from the current assets. The profitability of the firm does not
determine the short term debt paying ability.
• Day’s Sales in Receivable
The number of day’s sales in receivables relates the amount of the accounts receivable
to the average daily sales on account. It is computed as follows,
25.00
19.21
20.00
15.00
Series1
10.00
3.79 3.21 2.30 2.94
5.00
0.00
20032004200520062007
Years
12
Interpretation
This ratio gives an indication of the length of time that the receivables have been
outstanding at the end of the year. Shortening the credit terms indicates that there will
be less risk in the collection of future receivables and a lengthening of the credit terms
indicates a greater risk. In the above data we see that in year 2003 the days sales in
account receivable is very high and it was not good for the company but after 2003
there is a great decrease in the days sales in inventory which show the good
performance of the company’s management and it shows a less risk in the collection
of future receivables.
• Account Receivable Turnover
200.00
Account Receivable
158.50
150.00 113.71 124.11
96.35
100.00 Series1
50.00 19.00
0.00
2003 2004 2005 2006 2007
Years
Interpretation
From the above calculation it is shown that account receivable turnover is increasing
with every year. It shows the liquidity of accounts receivable in terms of time per
year. We see that in 2003 the account receivable turnover is too low and in 2004 there
is a high increase in accounts receivable turnover and we see a gradual increase in the
accounts receivable up to year 2006. In 2007 we see a great decline in accounts
receivable turnover.
13
• Days Sales in Inventory
The number of day’s sales in inventory ratio relates the amount of the ending
inventory to the average daily cost of goods sold. It is computed as follows,
120.00 110.80
100.35
100.00
73.23
80.00 64.68 60.78
(Days)
60.00 Series1
40.00
20.00
0.00
2003 2004 2005 2006 2007
Years
Interpretation
The day’s sales in inventory estimate the number of days that it will take to sell the
current inventory. The lower the number of day’s sales in inventory, the better the
inventory control. From the above data we see that there is a slight decrease in 2004
in day’s sales in inventory and it shows a good trend but after 2004 there is a high
increase in the day’s sales in inventory to year 2006 which shows a weak inventory
control of the management. In 2007 we see a little decrease in number of days in
day’s sales inventory which indicates that management is trying to improve the
inventory control system
14
• Inventory Turnover
This ratio indicates the liquidity of the inventory. The formula is as follow,
8.00
Inventory Turnover
5.64 6.01
6.00 4.98
(Times)
3.29 3.64
4.00 Series1
2.00
0.00
2003 2004 2005 2006 2007
Years
Interpretation
As shown in the table there is an increase in 2004 as compared to the base year.
Whereas there is a decline in the inventory turnover in the following two years. On
the other hand there is a slight rise in the ratio in last year. It is better for the company
to have a high inventory turnover ratio .
• Working Capital
The working capital of a business is an indication of the short term solvency of the
business. It is computed as follows
15
Capi
king
Wor
Net
Rs)
(in
tal
600000 511240
500000
400000 312183
300000 249006
202345
200000 Series1
100000
0
-200000
Years
Interpretation
In the first year there is decrease in the working capital. And then in the second year
the working capital gone to the negative side. That decline is due to increase in the
current liabilities. That in turn affected the short term solvency of the company. But in
the coming years the working capital increase to a good extent. That on the other hand
increased the solvency of the company. Higher ratio is better for the organization to
get the short term loans from financial institutions.
• Current Ratio
The current ratio determines short term debt paying ability and is computed as follows
Rati
o in
Tim
ent
es
1.80
1.53 1.54
1.60
1.25 1.35
1.40
1.20
0.92
1.00
Series1
0.80
0.60
0.40
0.20
0.00
2003 2004 2005 2006 2007
Years
16
Interpretation
In the above table the ratio is increasing in the first years that mean the company has
more funds to pay its current liabilities. But in the coming year there is a decrease in
the ratio. That affects the company’s debt paying ability. In the last two years the ratio
increased due to increase in the current assets. So that is the positive sign for the
company. It increases the short term, liquidity of the company and it attracts the short
term loan providers on the cost of profitability.
The acid test ratio relates the most liquid assets to current liabilities. Inventory is
removed from current assets when computing the acid test ratio. Reason for removing
inventory is that inventory may be slow moving or possibly obsolete and parts of the
inventory may have been pledged to specific creditors.
(Tim
Test
Rati
es)
1.20
o
1.03
1.00 0.90
0.85
0.74
0.80
0.63
0.60 Series1
0.40
0.20
0.00
2003 2004 2005 2006 2007
Years
Interpretation
In the above table we can see that there is a decreasing trend in the ratio. This ratio is
taken on the basis of quick assets (cash or cash equivalents). The main reason of the
decline is the increase in the current liabilities. The other reason is increase in the
inventory that decreases the required ratio.
17
• Cash Ratio
The best indicator for the company’s short term liquidity may be the cash ratio. It is
computed as follows,
Cash Ratio = (Cash & Cash Equivalent + Marketable Securities) / Current Liabilities
0.80
0.67
0.70
Cash Ratio ( Times)
Interpretation
A high cash ratio indicates that the firm is not using its cash to its best advantage. A
cash ratio that is too low could indicate an immediate problem with paying bills.
18
Long Term Liquidity / Long Term Debt Paying
Ability
• Debt Ratio
The debt ratio indicates the firm’s long term debt paying ability. It is computed
as follows
The debt ratio indicates the percentage of assets financed by creditors, and it
helps to determine how well creditors are protected in case of insolvency. If
creditors are not well protected, the company is not in a position to issues
additional long term debt. From the prospective of long term debt paying
ability, the lower the ratio, the better the company’s position.
80.00% 74.26%
67.19%
70.00%
60.64%
Debt Ratio (%age)
60.00%
47.04%
50.00% 41.64%
40.00% Series1
30.00%
20.00%
10.00%
0.00%
2003 2004 2005 2006 2007
Years
Interpretation
This table shows the current and past debt paying ratio of the company. The ratio in
2003 was 74.26% which was very high but after that till 2007 it is decreasing
continuously and in 2007 it is 41.64% this decreasing trend shows the company is in
better position as compare to 2003.
Major reason of that decreasing trend is liabilities were decreasing year to year and
liabilities decreasing due to increasing in the owner’s equity.
19
• Debt/Equity Ratio
It determines the entity’s long term debt paying ability. This computation
compares the total debt with total share holder’s equity. This ratio also helps
to determine how well creditors are protected in case of insolvency. From
the prospective of long term debt paying ability, the lower the ratio, the
better the company’s position.
It is computed as follows:
350.00%
Debt / Equity Ratio ( %age)
288.51%
300.00%
250.00%
204.79%
200.00%
154.07% Series1
150.00%
88.82%
100.00% 71.36%
50.00%
0.00%
2003 2004 2005 2006 2007
Years
Interpretation
This table shows the current and past debt/Equity ratio of the company. The ratio in
2003 was 288.51% which was very high but after that till 2007 it is decreasing
continuously and in 2007 it is 71.36% this decreasing trend shows that company is in
better position as compare to 2003.
Major reason of that decreasing trend is liabilities were decreasing year to year and
liabilities are decreasing due to increasing in the owner’s equity.
20
• Debt to Tangible Net worth Ratio
The Debt to Tangible Net worth Ratio determines the entity’s long term
debt paying ability. This ratio also helps to determine how well creditors are
protected in case of insolvency. From the prospective of long term debt
paying ability, the lower the ratio, the better the company’s position. The
Debt to tangible net worth ratio is a more conservative ratio than either the
Debt Ratio or the Debt/Equity Ratio. It eliminates Intangible assets, such as
good will, trade marks, patents and copy right because they do not provide
resources to pay creditors a very conservative position.
It is computed as follows:
350.00%
Debt To Tangible Networth (
288.51%
300.00%
250.00% 204.79%
200.00%
%age)
154.07%
150.00% Series1
88.82%
100.00% 71.36%
50.00%
0.00%
2003 2004 2005 2006 2007
Years
Interpretation
This table shows the current and past Debt to Tangible Net worth of the company.
The ratio in 2003 was 288.51% which was very high but after that till 2007 it is
decreasing continuously and in 2007 it is 71.36% this decreasing trend shows that
company is in better position as compare to 2003.
Major reason of that decreasing trend is liabilities were decreasing year to year and
liabilities are decreasing due to increasing in the owner’s equity.
21
• Times interest earned ratio
The times interest earned ratio indicates a firm’s long term debt paying
ability from the income statement view. if the times interest earned is
adequate, little danger exists that the firm will not be able to meet its
obligations. If the firm has good coverage of the interest obligation, it
should also be able to refinance the principle when it comes due.
A relatively high stable coverage of interest over the year indicates the good
record. A low fluctuation coverage from years to years indicates a poor
record.
It is computed as follows:
300 254
200
(Times)
Series1
100 71 58
18 14
0
2003 2004 2005 2006 2007
Years
Interpretation
The above table indicates the Time interest earned ratio which shows the
firm will able to meet his obligation or not in 2003 interest earned was 18
times of operating profit but in 2004 it was 71 times and it increase further
to 254 times in 2005 at that time company was strong in meeting its
obligation but after 2005 it was decreased to 58 times in 2006 and 14 times
in 2007 this shows company losing its position to meet the obligation.
The Fixed charge coverage ratio indicates a firm’s long term debt paying
ability from the income statement view. The fixed charge ratio indicates a
firms ability to cover fixed charges.
It is computed as follows:
22
Analysis of Profitability
Profitability is the ability of the firm to generate earnings. Profits are important to
stockholders as derive revenue in the form of dividend and also important to creditors
because profits are one source of funds for debt coverage.
Net Profit Margin= Net Income before Minority shares of Earnings /Net Sale
Mar
(%a
Net
gin
ge)
40.00%
t
28.08%
17.94% 18.66%
20.00% 13.68%
2003
0.00% Series1
2004 2005 2006 2007
-20.00%
-40.00% -34.16%
Years
Interpretation
This ratio gives a measure of net income dollars generated by each dollar of sales.
While it is desirable for this ratio to be high, competitive forces within an industry,
economic conditions, use of debt financing, and operating characteristics such as high
fixed cost will cause the net profit margin to vary between and within industries.
23
Total Assets Turnover
0.80 0.69
0.60 0.54
0.46
(Times)
0.39
0.40 Series1
0.24
0.20
0.00
2003 2004 2005 2006 2007
Years
Interpretation
It measures the activity of the assets and the ability of the firm to generate sales
through the use of assets. The ratio is increasing and we can conclude that the cement
company is efficiently using its assets to generate more sales and more profits.
• Return on Assets
Return on Assets= Net Income before Minority Share of Earning /Average Total
Assets
Return on Assets (Amounts in Rs. “000”)
2003 2004 2005 2006 2007
Net Income -516,075 314,150 510,490 1,203,739 646,323
Total Assets 6,313,256 5,910,353 6,223,788 6,198,107 6,400,688
Return on Assets
(%age) -8.17% 5.32% 8.20% 19.42% 10.10%
Retu
Ass
ets
on
rn
30.00%
19.42%
20.00%
5.32% 8.20% 10.10%
10.00% Series1
0.00%
20032004200520062007
-10.00%-8.17%
Years
Interpretation
It measures the firm’s ability to utilize its assets to create profits by comparing profits
With the assets which generate the profits. In the base year the ratio is negative that is
the bad sign for the company. But later wards it is increasing till the third year and it
slope downwards in the last year. The reason behind that increase is the effective use
of assets. The cement company is utilizing its assets in a better way to get more
earnings.
24
• Operating Income Margin
46.63%
50.00%
Operating Income
40.00% 34.36%
29.63%
26.61%
Margin
30.00%
Series1
20.00%
8.09%
10.00%
0.00%
2003 2004 2005 2006 2007
Years
Interpretation
It include only operating income in the numerator. After checking table we can say
that there is an increasing trend in operating profit margin the coming three years. But
it declined in the last year due to increase in the cost of sales. Management must
focus on the cost to control in order earn more profits.
1.20
0.97
Operating Assets
Turnover(Times)
1.00 0.81
0.80 0.62
0.52
0.60 Series1
0.33
0.40
0.20
0.00
2003 2004 2005 2006 2007
Years
25
Interpretation
This ratio measures the ability of operating assets to generate sales dollars. In the
table there is increasing trend in the ratio that can be identified that the company is
using its assets in the best way it can utilize them. The best use of assets is giving the
higher return on them.
27.22%
30.00%
Return on Operating
20.00% 15.17%
11.21%
7.16%
Assets
10.00%
Series1
0.00%
-10.00% 2003 2004 2005 2006 2007
-11.27%
-20.00%
Years
Interpretation
The above table is showing that in the base year the operating assets are not utilizing
to the best they can be. That’s why the ratio is negative in the base year. On the other
the ratio is rising up there main reason behind that increase is the operating assets are
utilizing in the best way. So it is important for the company should use its assets in the
best manner it can.
• Sales to Fixed Assets
It is computed as follows
26
Sales to Fixed Assets
1.20 0.97
1.00 0.81
0.80 0.62
(Times)
0.52
0.60 Series1
0.33
0.40
0.20
0.00
2003 2004 2005 2006 2007
Years
Interpretation
This ratio shows the firms ability of productivity against the fixed assets and this
table indicates that the sales to fixed assets which was 0.33 times in 2003 and 0.52
in 2004, 0.62 in 2005, 0.97 in 2006 and 0.81 in 2007 these figures shows that firms
productivity against fixed assets increasing year to year but in 2007 it was
decreasing due to the decrease in the firms Net sales and this analysis also shows
that increase in sales have kept pace with net fixed asset increase
27
27.63%
30.00%
Return on Investment
20.00% 15.54%
12.92%
7.88%
10.00% Series1
0.00%
2003 2004 2005 2006 2007
-10.00% -4.08%
Years
Interpretation
In the above the Return on investment in 2003 is -4.08% but in 2004 to 2006 there
is an increasing trend but after that in 2007 it again decreases to 15.54% from
27.63%. The reason behind this that company’s long term debt decreases over five
years. Also net income from 2003 to 2006.
This ratio measure the return to both common and preferred shareholders. It is
computed as
60.00%
Return on Total Equity
36.67%
40.00%
16.20%20.84% 17.30%
20.00%
Series1
0.00%
-20.00% 2003 2004 2005 2006 2007
-40.00% -31.76%
Years
Interpretation
In the above the Return on Total equity in 2003 is -31.76% but in 2004 to 2006
there is an increasing trend but after that in 2007 it again decreases to 17.30% from
36.67%. the reason behind this that company’s long term debt decreases over five
years. Also there is an increasing trend in Total equity in five years. Net income
also increases from 2003-06.
28
• Return on common Equity
This ratio measures the return to common shareholder, the residual owner.
Compute the return on common equity as follows
40.00% 32.47%
Return on Common
30.00%
17.21%
20.00% 13.77%
Equity
8.47%
10.00% Series1
0.00%
-10.00% 2003 2004 2005 2006 2007
-20.00% -13.92%
Years
Interpretation
In the above the Return on Common equity in 2003 is -13.92% but in 2004 to 2006
there is an increasing trend but after that in 2007 it again decreases to 17.21% from
32.47%. the reason behind this that company’s long term debt decreases over five
years. Also there is an increasing trend in Total equity in five years. Net income
also increases from 2003-06.
Gross profit margin analysis helps a number of users. Manager’s budget gross
profit levels into their predictions of profitability. Gross profit margin is also use in
cost control. Gross profit margin can also be used to estimate inventory involved in
insured loses.
29
Interpretation
In this table the gross profit margin has inclined substantially over the 1st four
years from 2003 to 2006 after that in 2007 the Gross profit Margin decreased by
31.52%.The increase in Gross profit margin is due to increase in Net sales and
Gross profit.
The increase in Gross profit is also due to
The cost of buying inventory has decreased in 1st four years but
increased in last year (2007).
Selling price has inclined.
Degree of financial leverage is the multiplication factor by which the net income
changes as compare to the change in EBIT.
Degree of Financial Leverage=%age change in Net income/%age change in
EBIT
The degree of financial leverage represents a particular base level of income. If
earning before interest increases the financial leverage will be favorable if earning
before interest decreases the financial leverage will be un favorable.
8.00
Degree of Financial
5.97
6.00
Leverage
4.00 Series1
1.43 1.30
2.00 0.86
0.09
0.00
2003 2004 2005 2006 2007
Years
Interpretation
In the above table we have seen that in 1st year the degree of financial leverage is
5.97 but in 2004 id decreases to 0.09 there is a very huge gap after that it
increases in 2005 to 1.43 and again there is a slight decrease by 0.13 in 2006 and
in last year it again decreases to 0.86. In 2004 EBIT is increases it means
financial leverage is favorable as compare to 2003 where EBIT is very less and
financial leverage is unfavorable then in last three years again financial leverage
is favorable.
PKR4.00 PKR3.25
PKR3.00
Share
PKR1.72
PKR2.00 PKR1.38
PKR0.85
PKR1.00 Series1
PKR0.00
-PKR1.00 2003 2004 2005 2006 2007
-PKR2.00 -PKR1.39
Years
Interpretation
In the above in 2003 the earning per common share is negative and this is due to
loss on sales. The earning per share is rising in the coming three years. That
attracts the investors who want the profit maximization. There is decrease in the
EPS in the last year as compared to the subsequent years.
• Price/Earning Ratio
Price per Earning Ratio expresses the relationship between the market price of a
share of common stock and that stock’s current earning per share.
Price per earning ratio = Market price per common share /Diluted earning per
share
Where diluted earning per share is basic earning per share if company only
presents basic earning per share.
• Percentage of earnings Retained
Percentage of earnings retained = Net income –All dividends / Net income
31
The dividend payout ratio measures the portion of current earnings per common
share being paid out in dividends.
Dividend payout = Dividend per common share / Diluted earnings per share
Dividend yield
The dividend yield indicates the relationship between the dividends per common
share and the market price per common share.
Dividend yield = Dividend per common share / market price per
common share
10.00 8.76
7.54
8.00
5.29
6.00
3.92 Series1
4.00 3.07
2.00
0.00
2003 2004 2005 2006 2007
Years
Interpretation
The book value per share is increasing in the coming years. The reason of that
rise is that the total common shareholder’s equity is increasing in the coming
years. That is very good for the investors to earn more on their investments. The
owners of the cement company are increasing as compared to the base year.
Multivariate Model
32
This model uses five financial ratios weighted in order to maximize the predictive
power of model. The model produces an overall discriminate score called a Z-Score.
Z= 0.012 X1+0.014X2+0.033X3+0.006X4+0.010X5
33
X5
0.0200 0.0182
0.0150
0.0111
Z-score
0.0096
0.0100 0.0081 Series1
0.0050 0.0035
0.0000
2003 2004 2005 2006 2007
Years
CONCLUSIONS AND
RECOMMENDATIONS
From the above information we conclude that cement sector in one of the prosperous
sector in the Pakistan’s economy. The potential investors should take their chances
investing in the cement sector through stock exchanges. The Fauji cement country has
proved itself as one of the leading cement factories of the country. The trade mark of
Fauji Foundation gives a sign of credibility in the minds of the investors.
It is strongly recommended that Fauji Cement should expand its business and should
establish the strategies of going global.
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