D G Khan Cement : TRANSMISSION OF HALF YEARLY REPORT FOR THE PERIOD ENDED DECEMBER 31, 2021

Half Yearly

Report,

December 31,

2021

(Un-audited)

D.G. KHAN CEMENT

COMPANY LIMITED

TABLE OF CONTENTS

FINANCIAL STATEMENTS

Company Information	02
Directors' Report	03
CONDENSED INTERIM UNCONSOLIDATED
Independent Auditor's Review Report	11
Statement of Financial Position	12
Statement of Profit or Loss - Unaudited	14
Statement of Comprehensive Income - Unaudited	15
Statement of Changes In Equity - Unaudited	16
Statement of Cash Flows - Unaudited	17
Notes to and Forming Part of the Condensed Interim
Unconsolidated Financial Information - Unaudited	18
CONDENSED INTERIM CONSOLIDATED
Statement of Financial Position	32
Statement of Profit or Loss - Unaudited	34
Statement of Comprehensive Income - Unaudited	35
Statement of Changes In Equity - Unaudited	36
Statement of Cash Flows - Unaudited	37
Notes to and Forming Part of the Condensed Interim
Consolidated Financial Information - Unaudited	38

COMPANY INFORMATION

Board of Directors

Mrs. Naz Mansha	Chairperson / Non-Executive
Mr. Raza Mansha	Chief Executive / Executive
Mr. Khalid Niaz Khawaja	Independent
Mr. Usama Mahmud	Independent
Mr. Mahmood Akhtar	Non-Executive
Mr. Farid Noor Ali Fazal	Executive
Mr. Shahzad Ahmad Malik	Non-Executive
Female Director 01
Male Directors 06

Audit Committee

Mr. Khalid Niaz Khawaja	Member/Chairman
Mr. Mahmood Akhtar	Member
Mr. Usama Mahmud	Member

Human Resource & Remuneration Committee

Mr. Khalid Niaz Khawaja	Member/Chairman
Mr. Raza Mansha	Member
Mr. Shahzad Ahmad Malik	Member

Management

Mr. Raza Mansha	Chief Executive Officer
Dr. Arif Bashir	Director Technical & Operations
Mr. Farid Noor Ali Fazal	Director Marketing
Mr. Inayat Ullah Niazi	Chief Financial Officer

Company Secretary

Mr. Khalid Mahmood Chohan

Bankers

Allied Bank Limited	MCB Islamic Bank Limited
Bank Alfalah Limited	Meezan Bank Limited
Bank Al-Habib Limited	National Bank of Pakistan
Bank Islami Pakistan Limited	Samba Bank Limited
Dubai Islamic Bank	Soneri Bank Limited
Faysal Bank Limited	Standard Chartered Bank Limited
Habib Bank Limited Limited	The Bank of Punjab
Habib Metropolitan Bank	United Bank Limited
MCB Bank Limited	The Bank of Khyber
JS Bank Limited	Silk Bank Limited
Citi Bank N.A.	Industrial and Commercial Bank
Askari Bank Limited	of China (ICBC)

External Auditors

A.F. Ferguson & Co., Chartered Accountants

Legal Advisors

Mr. Shahid Hamid, Bar-at-Law

Important Identification Numbers of Company

CUIN: 0006469	NTN: 1213275-6
STRN: 0402252300164	PSX Symbol: DGKC

Company Products

I. Clinker

1. Ordinary Portland Cement (OPC)
   III. Sulphate Resistant Cement (SRC)

HS Code

Clinker: 2523.1000	Cement: 2523.2900

Applicable Laws & Regulations

Many laws and regulations apply to the Company including:

• The Companies Act
• Stock Exchange Regulations
• Code of Corporate Governance
• International Accounting and Financial Reporting Standards
• International Auditing Standards
• Income Tax Law
• Sales Tax Law
• Excise Laws
• Property Laws
• Labour Laws
• Health & Safety Laws
• Environmental Laws
• Banking Regulations, etc.

Company Rating

Long Term: AA -	Short Term: A1+
Outlook: Stable	Rating Agency: PACRA
Rating Date: March 04, 2021

Registered Office

Nishat House, 53-A, Lawrence Road, Lahore-Pakistan.
UAN: [phone]	Fax: [phone]
Email: [e-mail]	web site: www.dgcement.com

Factories

Khofli Sattai, Distt., Dera Ghazi Khan-Pakistan.

Phone: [phone]	Fax: [phone]
Email: [e-mail]

12, K.M. Choa Saidan Shah Road, Khairpur,

Tehsil Kallar Kahar, Distt. Chakwal-Pakistan.

Phone: [phone]	Fax: [phone]
Chichaee Gadani Main RCD, HUB
Distt. Lasbela, Pakistan
UAN: [phone]

Share Registrar: THK Associates (Pvt) Ltd

Head Office, Karachi	Branch Office, Lahore
Plot No. 32-C, Jami Commercial	Siddique Trade Centre,
Street No. 2, DHA Phase_VII,	Office No. PL-29, PL Floor,
Karachi 75500.	72 Main Boulevard,
UAN: 021 111 000 322	Gulberg II, Lahore
Tel: [phone], Fax: [phone]	Phone: [phone]

For Investors' Information, Comments, Inquiries, Complaints
Mr. Farid Fazal	(Director Marketing)
E-mail: [e-mail]	Phone: [phone]
(Marketing related queries)
Mr. Inayat Ullah Niazi	(Chief Financial Officer)
E-mail: [e-mail]	Phone: [phone]
Mr. Khalid Mehmood Chohan	(Company Secretary)
E-mail: [e-mail]	Phone: [phone]

2	HALF YEAR 2021 DGKC

Directors' Report

The directors of your company are pleased to present you the results of HY22:

	HY2022	HY2021
	Rupees in '000'
Sales	27,434,482		21,862,581
Cost of sales	(22,576,459)		(18,449,084)
Gross profit	4,858,023		3,413,497
Administrative expenses	(368,391)		(310,022)
Selling and distribution expenses	(1,011,242)		(992,066)
Net impairment (losses)/gain on financial assets	(38,764)		30,888
Other expenses	(333,413)		(48,172)
Other income	1,292,402		353,624
Finance cost	(1,537,950)		(1,528,903)
Profit before taxation	2,860,665		918,846
Taxation	(683,588)		(117,980)
Profit for the period	2,177,077		800,866
EPS (Rs/share)	4.97		1.82
GP%	17.71%		15.61%
PBT%	10.43%		4.20%
PAT%	7.94%		3.66%
Production and Sales volumetric data is as under:
	HY2022	HY2021
	in MT
Production:
Clinker	3,356,283		3,094,799
Cement	2,751,340		2,778,473
Sales:
Total Cement	2,709,973		2,756,448
Local Cement (excluding own consumption)	2,534,154		2,703,221
Export Cement	175,819		53,227
Clinker Sale	754,905		1,008,205

FY22 came with high expectations on part of Government to achieve high growth numbers at macro-economic levels. High PSDP expenditure was budgeted. Targeted subsidies were planned at different sectors of economy. Agriculture sector was heavily incentivized with 'Kisan card', high support prices, laws relating to timely payments to farmers and National Agriculture Emergency program. Construction sector was also focused with subsidies on housing loans, extension in tax amnesty and through regulatory enforcement by State Bank of Pakistan. This pace was halted by the world-wide inflation crisis mainly on account of high fuel and energy prices. As a result, Pakistan economy exposed to fault lines in early months of the year. Current account deficit that started showing signs of weakness in last quarter of FY21, carried on in the current year. Worldwide inflation in commodity (particularly coal and crude oil) and edible oil prices made

HALF YEAR 2021 DGKC

3