Karachi December 7 2021: In order to meet the legal standards and to avoid any adverse action from the Environmental Department, Dandot Cement decided
to upgrade the plant through Balancing, Modernization and Replacement (BMR). For the purpose, the Company signed a Memorandum of Understanding (MOU) with a renowned cement contractor from China for BMR.
The substantial amount has been approved by financial institutions under the TERF scheme of State Bank of Pakistan (SBP) and remaining amount shall be arranged by the sponsors as fresh equity. The relevant Letters of Credit (LCs) for import of the said machinery under BMR are established. The Company hopes to complete the BMR within its time lines and get back to its commercial operations.
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Domestic cement despatches increased by 10.21 percent in November 2021
During the year, pursuance of strategic financial management strategy of the Company, the management has decided to increase its equity base by issuance of right shares. The main purpose of Right issue is re-profiling of financial credentials through capitalization and repayment of sponsors’ loan.
Subsequent to year end, after complying all legal requirements, the Board of Directors approved the allotment of these right shares in their meeting held on August 09, 2021. Resultantly, the paid up capital of the Company would be enhanced to amounting Rs. 2,481.73 million.
The management of the Company has injected significant funds after acquisition. The financial institutions have also approved limits for the import of machinery for Balancing, Modernization and Replacement (BMR), all LC’s are established during the year.
Based on the efforts of the new management in the right direction, the management is fully confident that the Company will continue its operations as a going concern. Workers’ compensation benefits in excess of statutory/legal requirements will be subject to recognition after final determination and verification by the Competent Authority. Letters for the balance confirmation have been circulated but no reply has been received. However, the balance has been confirmed by external auditors’ through alternative audit procedures.
Furthermore, since order passed in 2009 by Securities and Exchange Commission of Pakistan (SECP), the Company is accruing markup on dues of provident fund in the books of account without any default.
