Your Directors take this opportunity to present financial statements of the Company

for the third quarter ended March 31, 2009.

The comparative data for production of clinker/cement and dispatches of cement

for the third quarter is summarized as under:

Clinker Production 55,658 20,591 184,169 167,996

Cement :
Production 65,341 21,458 199,365 175,671
Dispatches 68,824 19,959 204,111 174,984

The operating performance of the Company suffered during the third quarter due
to closure of the factory for more than a month for major planned maintenance.
Further, the net retention of the Company decreased to Rs.4,261 per tonne from
Rs.4,504 per tonne as compared to the previous quarter. This is reflected in financial
results as tabulated below:

Gross profit / (loss) (15.1) (39.8) 27.1 (178.9)

Operating Loss (38.4) (57.7) (57.7) (245.9)
Loss before taxation (95.7) (111.9) (247.1) (403.0)
Net Loss after taxation (95.7) (112.1) (203.8) (331.0)

The Company is expecting that after the recently completed major maintenance of
the plant, production will be up to its rated capacity, which in return will substantially
improve profitability besides bringing continuity and sustainability to its production.

The Board of Directors appreciates the efforts and devotion of the executives and
the entire management team and anticipates that they will contribute towards the
enhancement of the productivity and well being of the Company in future with even
greater zeal & spirit.

For and on behalf of the Board

KAMRAN RASOOL
Lahore: April 28, 2009 Chief Executive
 Note
CAPITAL AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised capital
100,000,000
ordinary shares of Rs.10 each 1,000,000) 1,000,000)

Issued, subscribed and paid-up capital 948,400) 948,400)

Share premium reserve 31,801) 31,801)

Accumulated loss (2,086,753) (1,915,158)

(1,106,552) (934,957)

SURPLUS ON REVALUATION OF
FIXED ASSETS 1,230,406) 1,262,615)

123,854) 327,658)
NON CURRENT LIABILITIES

Loan from banking companies 1,020,000) 1,020,000)

Other loans 442,521) 438,085)

Liabilities against assets subject

to finance lease -))))) 30)

Deferred liabilities 355,324) 398,585)

Long term advances and deposits 7,335) 7,258)

1,825,180) 1,863,958)

CURRENT LIABILITIES

Trade and other payables 395,920) 316,308)

Mark up accrued 342,637) 161,909)

Short term borrowings 352,532) 375,702)

Current maturity of long term

loans and liabilities 36,915) 40,501)

Taxation 15,790) 15,790)

1,143,794) 910,210)

CONTINGENCIES AND COMMITMENTS 3 -))))) -)))))

3,092,828) 3,101,826)

The annexed notes form an integral part of these interim financial statements.

MANSOOR RASHEED
Director
 Note
PROPERTY AND ASSETS

NON CURRENT ASSETS

FIXED ASSETS - Tangible

Operating fixed assets 2,323,163 2,382,119

Capital work in progress 155,325 155,244

2,478,488 2,537,363

Long term loans 411 276

Long term security deposits 10,312 10,315

Deferred cost -)))) 28,384

2,489,211 2,576,338

CURRENT ASSETS

Stores, spares and loose tools 160,434 135,896

Stock in trade 14,473 42,166

Loans and advances 374,051 298,232

Deposits, and short term prepayments 5,899 6,448

Balances with statutory authorities 24,825 22,281

Interest accrued 9,479 9,447

Other receivables 2,070 683

Cash and bank balances 12,386 10,335

603,617 525,488

3,092,828 3,101,826

KAMRAN RASOOL
Chief Executive
 Third quarter ended Nine months ended
Mar 2009 Mar 2008 Mar 2009 Mar 2008
(Rupees in thousand) (Rupees in thousand)

SALES (Net) 293,235) 56,773) 902,533) 427,053)

COST OF SALES 308,330) 96,528) 875,477) 605,982)

GROSS PROFIT \ (LOSS) (15,095) (39,755) 27,056) (178,929)

OPERATING EXPENSES
Administration and general 22,686) 17,556) 79,644) 58,407)
Distribution cost 595) 436) 5,113) 8,630)

(23,281) (17,992) (84,757) (67,037)

OPERATING LOSS (38,376) (57,747) (57,701) (245,966)

Financial Charges (57,845) (53,019) (190,116) (157,100)

Other income / (charges) 542 (1,090) 752 52)

LOSS BEFORE TAXATION (95,679) (111,856) (247,065) (403,014)

TAXATION
- Current -))))) 265) -))))) 2,257)
- Deferred -))))) -))))) (43,261) (74,251)

-))))) 265) (43,261) (71,994)

NET LOSS AFTER TAXATION (95,679) (112,121) (203,804) (331,020)

Accumulated loss brought forward (2,001,810) (1,737,471) (1,915,158) (1,541,156)

Incremental depreciation due to

revaluation of fixed assets for
the period 10,736) 11,292) 32,209) 33,876)

Accumulated loss carried to

balance sheet (2,086,753) (1,838,300) (2,086,753) (1,838,300)

Loss per share - Basic (Rupees) (1.01) (1.18) (2.15) (3.49)

MANSOOR RASHEED KAMRAN RASOOL

Director Chief Executive
CASH FLOWS FROM
OPERATING ACTIVITIES

Loss before taxation (247,065) (403,014)

Adjustments of items not involving

movement of cash:
Depreciation 63,020) 66,096)
Provision for Gratuity -)))) 2,168)
Amortization of deferred cost 28,384) 30,137)
Gain on disposal of fixed assets (388) -))))
Financial charges 190,116) 157,100)

281,132) 255,501)

Operating cash flows before working

capital changes 34,067) (147,513)

(Increase)/Decrease in operating asset :

Stores, spares and loose tools (24,538) (50,784)
Stock in trade 27,693) (8,718)
Loans and advances (75,819) (58,172)
Deposits and short term prepayments 549) (5,249)
Other receivables (1,417) (1,082)
Increase/(Decrease) in trade and other payables 80,078) (213,345)

6,546) (337,350)

40,613) (484,863)

Long term advances and deposits 77) 1,189)

Gratuity paid (467) (1,024)
Financial charges paid (9,388) (104,870)
Income tax paid (2,544) (498)

Net Cash Flows From Operating Activities 28,291) (590,066)

CASH FLOWS FROM

INVESTING ACTIVITIES
Fixed assets - Tangible (4,281) (19,986)
Sale proceeds of fixed assets 524) -))))
Long term loans and deposits (132) (452)

Net Cash Flows From Investing Activities (3,889) (20,438)

CASH FLOWS FROM

FINANCING ACTIVITIES
Share Capital -)))) 270,000)
Loan from Banking companies -)))) 269,000)
Other Loans 1,436 (11,283)
Repayment of lease liability (Net) (617) (1,089)
Short term borrowings (23,170) 72,890)

Net Cash Flows From Financing Activities (22,351) 599,518)

Net Increase /(Decrease) in Cash and

Cash Equivalents 2,051) (10,986)

Cash and cash equivalents at beginning

of the period 10,335) 14,007)

Cash and cash equivalents at end

of the period 12,386) 3,021)

MANSOOR RASHEED KAMRAN RASOOL

Director Chief Executive
 Surplus on
Share Total share revaluation
Share premium Accumulated capital and Total
capital Loss of fixed
reserve reserves assets
(Rupees in Thousand)
Balance as at
July 01, 2007 678,400 31,801 (1,541,156) (830,955) 1,307,782) 476,827)
Loss for the period -))))) -))))) (331,020) (331,020) -))))) (331,020)
Shares issued during
the period 270,000 -))))) -))))) 270,000) -))))) 270,000)
Incremental depreciation
transferred to surplus
on revaluation of
fixed assets’ account -))))) -))))) 33,876) 33,876) (33,876) -)))))
Balance as at
March 31, 2008 948,400 31,801 (1,838,300) (858,099) 1,273,906) 415,807)
Balance as at
July 01, 2008 948,400 31,801 (1,915,158) (934,957) 1,262,615) 327,658)
Loss for the period -))))) -))))) (203,804) (203,804) -))))) (203,804)
Incremental depreciation
due to revaluation
charged to surplus: -))))) -))))) 32,209) 32,209) (32,209) -)))))
Balance as at
March 31, 2009 948,400 31,801 (2,086,753) (1,106,552) 1,230,406) 123,854)

MANSOOR RASHEED KAMRAN RASOOL

Director Chief Executive

1. These interim condensed financial statements have been prepared in accordance

with the requirements of International Accounting Standard (IAS) 34 "Interim
Financial Reporting" as applicable in Pakistan and are being submitted to the
shareholders as required under Section 245 of the Companies Ordinance,
1984 and the listing regulations of the Karachi and Lahore Stock Exchanges.
The accounting policies adopted in these interim condensed financial statements
are the same as those applied in the preparation of the preceding annual
published accounts.

2. Figures have been rounded off to the nearest thousand rupees and figures of
previous year have been rearranged wherever necessary to facilitate the
comparison.

3. CONTINGENCIES AND COMMITMENTS

Contingencies and commitments are unchanged since last published half yearly
accounts of the Company.

4. DATE OF AUTHORISATION
These financial statements were authorised for issue on April 28, 2009 by the
Board of Directors of the Company.

MANSOOR RASHEED KAMRAN RASOOL

Director Chief Executive