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The Vision

“To be the market leader in domestic and exports from the Country by supplying high quality cement at the most competitive rates with customers’ satisfaction and discharge our social responsibilities for the benefit of under privileged”.

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The Mission

“To be the largest and fastest growing cement producer using state of the art technology at the most competitive cost by utilizing our experience for maximizing profits for our shareholders”.

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Company Profile:-

Company History:

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Group Information:

Lucky Cement Limited has been sponsored by Yunus Brothers Group (YB Group) which is one of the largest business groups of the Country based in Karachi and has grown up remarkably over the last 50 years. The YB Group is engaged in diversified manufacturing activities including Textile, Spinning, Weaving, Processing, Finishing, Stitching and Power Generation. The Group consists of a number of industrial establishments other then Lucky Cement Limited, they include:

1. Lucky Textile Mills 2. Fazal Textile Mills Limited 3. Gadoon Textile Mills Limited 4. Lucky Energy (Private) Limited 5. Yunus Textile Mills

Lucky Textile Mills - established in 1983- Fully computerized weaving and stitching unit - Consists of 3 weaving plants comprising of 800 looms, 250 stitching machines, 3.4 million meter/month Grey fabric capacity, 83 million meters/ annum processing and 15 million meters/ annum made ups capacity - Power generation capacity 6.20 MW - Expertise in ready-made curtains and accessories for foreign markets

Fazal Textile Mills Limited - established in 1987

- One of the top spinning mills in the country with 59,508 installed spindles - Produces 100% Grey Cotton Ring Spun Yarn and wide range of Blended and Heather Yarns? - ISO – 9001:2000 certified

Gadoon Textile Mills Limited - established in 1988

- First of the only two mills in the world producing Compact Core Spun yarn - 194,392 installed spindles. Produces high quality Compact yarn, Murata Jet Spinning yarn, Core Spun yarn and 100% Grey Cotton Ring Spun yarn - Also has a power plant of 34 MW - OKO – Tex Standard 100 certified

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Lucky Energy (PVT) Limited - established in 1993

- Captive power unit - Supplies uninterruptible power to Lucky Textiles, Fazal - Textiles & Lucky Knitwear - Generation capacity of 17.4 MW

Yunus Textile Mills Limited - established in 1998

- State of the art machinery for weaving, printing and dyeing - Self power generation capacity of 14 MW - 250 Air Jet looms installed - Completely vertically integrated textile mill - Major Player in home textile and garment exports

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Management Flow Chart:

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Accounting and Finance flow chart:-

Manager Finance Accounting and Taxation

In-charge TreasuryIn-charge Finance Accounting and Taxation

Financial Accounting and Taxation

Reporting Department

Cost Accounting and Department

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Department in the Company:-The major departments are:

Sales and Marketing Department.

Finance and Accounting Department.

Commercial Department.

Administration Department.

Departments are divided according to manufacturing process

Raw Mill.

Clinker Production.

Cement Production.

Packaging and Distribution.

Other important Department includes

Mechanical and Electric Department.

Procurement Department.

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Cost Accounting Department:-The cost accounting department is consisting eight employees. Mr. Zia is the In-charge of

Accounting, Finance and Taxation Department. Every employee is responsible for every activity in the department so it is tough to identify the job responsibilities of every employee individually. However he listed the following activities mentioned to the job description of the cost accounting department employees.

To track the project costs, expenses and labor hours using Enterprise Resource Planning system.

Prepare cost accounting reports for higher authorities.

Work with operation to reconcile inventory, job material and work in process record.

Calculated and set overhead rates.

Assist marketing in setting product prices and assist sales in quantity custom project by providing cost information.

Cost accounting department is responsible for following task.

Assist with budgeting and forecasting process.

Prepare detail monthly gross margin analysis reports.

Enhance and maintain labor productivity.

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Products

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Lucky Cement aims at producing cement to suit every user. The following types of cement are available:

1. Ordinary Portland Cement

2. Sulphate Resistant Cement

3. Slag Cement

1. ORDINARY PORTLAND CEMENT (OPC)Ordinary Portland cement is available in darker shade as well as in light shades in Lucky Star with different brand names to suit the requirement of users.

It is used in all general constructions especially in major prestigious projects where cement is to meet stringent quality requirements; it can be used in concrete mortars and grouts etc. Ordinary Portland cement is compatible/consumable with admixture/ retarders etc.

2. SULPHATE RESISTANT CEMENT (SRC)Sulphate resistant Cement’s best quality is to provide effective and long lasting strength against sulphate attacks and is very suitable for constructions near sea shores as well as for canals linings. It provides very effective protection against alkali attacks.

3. SLAG CEMENTSlag cement is also available for specific user requirements.

Slag cement, has been incorporated into concrete projects for over a century to improve durability and reduce life cycle costs. Among its measurable benefits in concrete are better workability and finish ability, higher compressive and flexural strengths, and improved resistance to aggressive chemicals.

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BRANDS AVAILABLE AT LUCKY CEMENT

Lucky Cement (Regular) Lucky Star

Lucky Gold Chairman Cement

Lucky Sulphate Resistant (SRC)

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Financial statements

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Process Costing:-

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Raw Material Quarrying:The main Raw Material is obtained from deposits that predominantly contain lime stone. The

deposits are querries which are worked by means of controlled blasting.

The rocks broken by the blast are taken to the crushing area by means of mechanical shovels and trucks.

Stock Pile:Piece of rocks are placed in hammer crushers, when they come out, they have been reduced to

the size of three centimeter.

The crushed lime is organized in a stone where uniform layers are established, this is done to increase the homogenous nature of lime stone pieces.

Raw Mill:In this stage the main Raw Material is mixed with other raw material namely iron ore, over

burden, shale in the given proportions.

Iron ore by 2.5 percent per ton

Over burden by 61 percent per ton

Shale by 4 percent per ton

Clinker Production:The crude powder is filled in silos from where it is subsequently fed into the clinker furnace. The

crude enters an exchange tower where it is subject to a counter flow of gas in order to attain a temperature of 850 degree centigrade.

The chemical process is completed inside the furnace following a major cooling process, the product obtained is clinker.

Cement Production:To clinker, gypsum is added in a proportion of 5 per ton. The material are then placed in the

cement mill where they are ground, mixed and homogenized the cement is then stored in silos for subsequent consignment.

Packaging and Distribution:Cement from the silos placed in the bagger. Automatic transport system is used to take the bags

to the pallets. Cement is now dispatched in bags to the specified addresses.

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Process Costing of Falcon Cement:-

Process Process Cost per ton (in Rs)

Direct labour cost per ton ( in Rs)

Direct Material Cost per ton (in

Rs)

Factory Overhead cost per ton (in

Rs)

Raw Material Querrying

100 35 40 25

Stock Pile 40 15 0 35

Raw Mill 190 15 135 40

Clinker Production 1250 50 100 1100

Cement Production

400 125 35 230

Packaging and Distribution

325 190 35 100

Cost Per Ton 2305 430 345 1530

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Direct Material:-

Procedure for Material Department:Majority of Raw Material required in the cement manufacturing process is extracted in home.

However iron ore- one of Raw material and Coal – source for generating heat energy during the different process.

The Company import coal from Indonesia from their preset suppliers and does not go through the process of quoting prices and sampling. Same is the case for iron ore. The reason for not going through the price quotation and sampling steps that the company has set fixed suppliers for the procurement of iron ore.

Method for recording Inventory:Inventory valuation is done on weighted Average bases. Under this method, the total cost of

purchases for the year, including beginning inventories, is divided by the total units purchased. The Average price per unit is then multiplied by the quantity of inventory in hand.

Raw Material Transfer:Lime Stone is transferred from the mining site to the factory by means of shovel and Trucks.

Other Raw Material including Gypsum, over burden and hale are extracted by the company itself and ore also transferred to the production site through heavy trucks and container.

Iron ore is also transferred to the site through trucks.

Coal which is a source of generating heat energy during the manufacturing process is procured through ships as it is imported from Indonesia.

Accounts used in Recording Inventory:The Company uses three accounts for inventory valuation which are given below:

Raw Material Inventory

Work in Process Inventory

Finished Goods Inventory

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Direct Labor:-

Procedure for recording Direct Labor:The salaries of the labor are paid at the end of the month. The salaries are calculated by

multiplying the number of hours worked by the labor and the wage rate assigned to the labor. The salaries are paid through cheques.

How Labor is assigned production:The technique for assigning production to labor is very simple at Lucky Cement Company. The

total production of the process is divided by the cost of total Direct Labor used in the process.

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Factory Overhead:-Following is the list of Factory Overheads production Department.

Process Factory Overhead (In Rs.)

Raw Material Querrying 25

Stock Pile 35

Raw Mill 40

Clinker Production 1100

Cement Production 230

Packaging and Distribution 100