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 Finance
Accounting and In-charge Treasury
Taxation

Financial
Accounting and
Cost Accounting
Taxation
and Department
Reporting
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 CEMENT
Slag 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 Direct labour Direct Factory

per ton (in cost per ton ( Material Cost Overhead
Rs) in Rs) per ton (in cost per ton
Rs) (in Rs)

Raw Material 100 35 40 25

Querrying

Stock Pile 40 15 0 35

Raw Mill 190 15 135 40

Clinker 1250 50 100 1100

Production

Cement 400 125 35 230

Production

Packaging and 325 190 35 100

Distribution

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

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