CONTENTS

Company Information 3

Notice of Meeting 4

Directors’ Report to the Members 7

Vision Statement, Mission Statement and Core Values 11

Statement of Compliance with the Code of Corporate Governance 12

Statement of Compliance with the best practices of transfer pricing 13

Review report to the Members on Statement of Compliance with the Best Practices
of Code of Corporate Governance 14
Statement of Ethics and Business Practices 15

Progress Graphs 16

Year-wise Statistical Summary 19

Ratio Analysis 20

Auditors’ Report to the Members 21

Balance Sheet 22

Profit & Loss Account 23

Cash Flow Statement 24

Statement of Changes in Equity 25

Notes to the Financial Statements 26

Pattern of Shareholding 42

Proxy Form

1
PROGRESS GRAPHS

WEALTH GENERATED & DISTRIBUTED 16

DEVELOPMENT OF BALANCE SHEET 17

FINANCIAL CHARGES 17

CEMENT SALES (IN TONS) 18

RETURN ON EQUITY (INCLUDING RESERVES) 18

CLINKER/CEMENT PRODUCTION 18

2
COMPANY INFORMATION

Mr. Abid A. Vazir

Mr. Akbarali Pesnani

3
NOTICE OF MEETING
Notice is hereby given that the 23rd Annual General Meeting of the Company will be held on Wednesday,
October 27, 2004 at 2.00 pm at the Registered Office of the Company at Modern Motors House, Beaumont
Road, Karachi to transact the following business:

ORDINARY BUSINESS

1. To receive and consider the Audited Accounts of the Company for the year ended June 30, 2004
and the Reports of the Directors and the Auditors thereon.

2. To consider and approve the payment of a cash dividend @ 40% (Rs. 4.00 per share) for the
financial year ended June 30, 2004 as recommended by the Board of Directors.

3. To approve the issuance of bonus shares @ 25% i.e. in the ratio of 1 bonus share for every 4
shares held.

4. To appoint the Auditors for the year 2004/05 and to fix their remuneration.

5. To transact any other business with the permission of the Chair.

SPECIAL BUSINESS

6. To approve and adopt a new set of Articles of Association of the Company, for which purpose it is
proposed that the following resolution be passed as and by way of a Special Resolution:

Resolved that the regulations contained in the printed document submitted to this meeting be
approved and adopted as the Articles of Association of the Company in substitution for, and to the
exclusion of, the existing Articles thereof.

7. To approve an increase in the authorized share capital of the Company, and in this connection pass
the following resolution as and by way of a Special Resolution:

Resolved that the authorized share capital of the Company be and is hereby increased from
Rs. 800,000,000 to Rs. 1,500,000,000 by creation of 70,000,000 shares of Rs. 10 each; that the
new shares shall rank pari passu in all respects with the existing ordinary shares in the capital
of the Company.

Resolved further that the Memorandum of Association of the Company be and is hereby altered by
substituting the existing Clause V with the following new clause:

V. The authorized capital of the Company is Rs. 1,500,000,000 divided into 150,000,000 shares
of Rs. 10 each. Subject to the provisions of the Companies Ordinance, 1984 any shares of the
original or increased capital may from time to time be issued with any other special privileges
or advantages viz-a-viz any shares issued prior thereto.

A statement under Section 160 of the Companies Ordinance 1984, pertaining to the above-mentioned
Special Businesses, is being sent to the Members with this notice.

By Order of the Board

Abid A. Vazir
Karachi: September 15, 2004 Company Secretary

4
 Statement U/S 160 of the Companies Ordinance, 1984

This Statement sets out material facts concerning “Special Businesses” to be transacted at the 23rd Annual
General Meeting of the Company to be held on October 27, 2004.

The approval of the Members of the Company will be sought for:

Item no. 6

The Board of Directors has recommended that the Articles of Association of the Company be substituted
for, and to the exclusion, of the existing Articles by a new set of Articles of Association. The proposed
set of Articles of Association updates the existing Articles of Association of the Company by taking into
account several changes made in the Companies Ordinance, 1984 since the time the Articles were last
amended. A copy of the new set of Articles of Association is being circulated to the shareholders of the
Company along with the Annual Report 2004 of the Company.

Item no. 7

The Company presently has an authorized share capital of Rs. 800,000,000 divided into 80,000,000
ordinary shares of Rs. 10 each, of which 53,192,352 ordinary shares are fully issued, subscribed and
paid up.

In order to facilitate future increases in the paid up capital, the Board of Directors has recommended that
the authorized capital of the Company should be raised to Rs. 1,500,000,000 divided into 150,000,000
ordinary shares of Rs. 10 each by creation of 70,000,000 ordinary shares of Rs. 10 each. For this
purpose, the Board of Directors has also recommended that the resolution set forth at item (7) under the
heading of “Special Business” of the notice of the 23rd Annual General Meeting of the Company should
be passed as a Special Resolution. The resolution increases the authorized capital of the Company in
the manner stated above and makes the required consequential changes in Clause V of the Memorandum
of Association of the Company.

6
DIRECTORS’ REPORT TO THE MEMBERS
FOR THE YEAR ENDED JUNE 30, 2004
The directors are pleased to place before you the financial results of the company along with the audited
accounts for the year ended June 30, 2004.

OVERVIEW
There continues to be significant improvement in the macro economic climate of the country. The national
economy, which has gone through a transition period, can now be termed as stable. Various measures
initiated by the government for the revival of the industrial and agricultural sectors of the country, have
shown positive results and growth has been recorded in almost all key areas of the economy.

The year 2003/04 was significantly a better year for the cement sector with government’s focus on the
construction industry. The aggregate quantity of cement sold, both locally and internationally, during the
year rose by 20% to 13.63 million tons.

PERFORMANCE OF THE COMPANY

The year 2003/04 proved to be an exceptional year for the company. The company not only
established a new cement production record of 801,563 tons but also achieved sales volume of 789,437
tons during the year. There was also an outstanding improvement in the after tax profitability of the
company, which increased to Rs. 425.69 million for the current year.

Production
In order to meet both the domestic and international demand, the company increased the production
of clinker and cement by 18% and 16% respectively, during the current year. Capacity utilization exceeded
100% as compared to 88% last year.

The comparative production figures of clinker and cement are stated under:

2003/04 2002/03 Variance

(in tons) (in tons) (in %age)

Sales and dispatches

Stable economic climate, increased government spending on infrastructure projects, and availability of
cheap credit, led to an increased demand for cement in the country. Domestic and international demand
rose by 8% and 24% respectively for the company during the year under review. We continue to be the
premium brand in Afghanistan.

2003/04 2002/03 Variance

(in tons) (in tons) (in %age)

Export sales 789,437 706,419 12%

7
Operating performance
The operating performance of the company remained impressive during the year under review. The
company earned an after tax profit of Rs. 425.69 million during the current year as against Rs. 9.74 million
last year. This improvement in profitability is mainly attributable to increased sales volume and higher
selling price compared to last year. Sales in financial terms increased by 38% i.e. Rs. 577 million from
the previous year. However, the company was also successful in controlling costs, with cost of sales
remaining almost the same as last year despite the increased production. The company made constant
efforts during the year to monitor and effectively control its expenses and in this respect, made forward
bookings of coal to offset the effect of increased international prices.

The summarized operating performance of the company for the current year and that of the corresponding
period last year is as follows:

2003/04 2002/03 Variance

(Rs. in million) (Rs. in million) (in % age)

Net sales 2,084.96 1,507.66 38%

Cost of sales 1,369.79 1,357.52 1%
Gross Profit 715.17 150.14 376%
Expenses & taxes 289.48 140.40 106%
Net Profit 425.69 9.74 4,271%

APPROPRIATION OF PROFIT
The after tax profit for the current year amounts to Rs. 425.69 million, which together with un-appropriated
profit of Rs. 3.90 million from last year, gives Rs. 429.59 million to be appropriated. The directors propose
the following appropriation of the available profit.

(PKR in million)
Net profit for the year APPROPRIATION OF PROFIT 425.69
Add: The after
Un-appropriated profit brought tax profit for the current year amounts
forward 3.90 to Rs. 425.69 million, which to
with un-appropriated
Total available for appropriation profit of Rs. 3.90 million from last year, gives Rs.
429.59
million to be appropriated. The directors propose the following appropria
the available profit.
Appropriations:
Proposed cash dividend @ 40% (2003: 12.5%) 212.77 (PKR in m
Proposed issue of bonus sharesNet
@ 25% (2003:
profit for Nil)
the year 132.98 425.69
Balance carried forward 83.84
Add: Un-appropriated profit brought forward 3.90
Total available for appropriation 429.59
EXPANSION OF PRODUCTION CAPACITY
As informed during the previousAppropriations:
quarter, the company has entered into an agreement with M/s. F. L.
Smidth A/S and L.V. Technology with an intention cash
Proposed of increasing
dividend the @
production
40% (2003: capacity of the plant
12.5%) 212.77
by 800 tons per day. The enhancement of capacity would benefit the company in overcoming the capacity
Proposed issue of Bonus shares @ 25% (2003: 0%)
constraints it is facing at present. Moreover, it would also help the company in meeting the expected
132.98
increase in the demand for cement both Balance
within the carried forward
country and in Afghanistan in future. Financing for the 83.84
project has been arranged and letters of credit for the import of equipment have already been established.
The expansion is likely to be completed by the second half of the year 2005.

8
FUTURE PROSPECTS
The initiative of the government to bring political and economic stability in the country and achieve good
ties with the neighbor countries, has boosted the confidence of the business community. With the
commencement of construction work on various infrastructural and housing projects, the demand for
cement is expected to rise further at home in the future. In order to cope with the increased demand both
domestically and abroad, the company is gearing itself by expanding its production capacity to ensure
uninterrupted supply of cement. We hope that peace continues to prevail and construction and developmental
work gathers pace in Afghanistan, which would bring more sales for the company. We also hope for the
benefit of everyone that the economic and social growth gathers momentum and continues to accelerate
in the country in the years ahead.

AUDITORS
The present auditors M/s. Ford Rhodes Sidat Hyder & Co., Chartered Accountants, retire and offer
themselves for reappointment.

ACKNOWLEDGMENT
We would like to thank all the financial institutions having business relationship with us, our dealers and
customers for their continued support, cooperation and the trust they have reposed in us. Also, we would
like to share our deepest appreciation for our team of executives, managers, supervisors and other
employees, for their dedication, loyalty and hard work.

On behalf of the Board of Directors

Mohammed Faruque
Chairman
Karachi: September 15, 2004

10
STATEMENT OF COMPLIANCE WITH THE CODE OF
CORPORATE GOVERNANCE
This statement is being presented to comply with the Code of Corporate Governance contained in the
listing regulations of the Karachi, Lahore and Islamabad Stock Exchanges for the purpose of establishing
a framework of good governance, whereby a listed company is managed in compliance with the best
practices of corporate governance.

The Company has applied the principles contained in the Code in the following manner:

1. The Company encourages representation of independent non-executive directors and directors

representing minority interest on its Board of Directors. At present the Board includes five
non-executive directors, of whom three are independent.

2. The directors have confirmed that none of them is serving as a director in more than ten listed
companies, including this Company.

3. All the resident directors of the Company are registered as taxpayers and none of them has
defaulted in payment of any loan to a banking company, a DFI or an NBFI or, being a member
of a stock exchange, has been declared as a defaulter by that stock exchange.

4. A casual vacancy occurring in the Board on October 13, 2003 was filled up by the directors within
fourteen days thereof.

5. The Company has prepared a `Statement of Ethics and Business Practices’, which has been
approved by the Board of Directors and signed by the employees of the Company.

6. The Board has developed a vision/mission statement, overall corporate strategy and significant
policies of the Company. A complete record of particulars of significant policies along with the
dates on which they were approved or amended has been maintained.

7. All the powers of the Board have been duly exercised and decisions on material transactions,
including appointment and determination of remuneration and terms and conditions of employment
of the CEO and other executive directors, have been taken by the Board.

8. The meetings of the Board were presided over by the Chairman and, in his absence, by a director
elected by the Board for this purpose and the Board met at least once in every quarter. Written
notices of the Board meetings, along with agenda and working papers, were circulated at least
seven days before the meetings. The minutes of the meetings were appropriately recorded and
circulated.

9. The Board comprises of senior corporate executives and professionals who are fully aware of
their duties and responsibilities and hence need was not felt by the directors for any orientation
course in this regard.

10. The Board has approved the appointment of CFO and Company Secretary including their
remuneration and terms and conditions of employment, as determined by the CEO. The Head
of Internal Audit was appointed prior to enforcement of the Code of Corporate Governance.
However, in future whenever new appointment takes place, remuneration and other terms of
employment will be referred to the Board of Directors for approval.

11. The directors’ report for this year has been prepared in compliance with the requirements of the
Code and fully describes the salient matters required to be disclosed.

12
12. The financial statements of the Company were duly endorsed by CEO and CFO before approval
of the Board.

13. The directors, CEO and executives do not hold any interest in the shares of the Company other
than that disclosed in the pattern of shareholding.

14. The Company has complied with all the corporate and financial reporting requirements of the Code.

15. The Board has formed an audit committee. It presently comprises of three members, two of
whom are non-executive directors including the Chairman of the committee.

16. The meetings of the audit committee were held at least once every quarter prior to approval of
interim and final results of the Company and as required by the Code. The terms of reference
of the committee have been formed and advised to the committee for compliance.

17. The Board has set-up an effective internal audit function.

18. The statutory auditors of the Company have confirmed that they have been given a satisfactory
rating under the quality control review programme of the Institute of Chartered Accountants of
Pakistan, that they or any of the partners of the firm, their spouses and minor children do not hold
shares of the Company and that the firm and all its partners are in compliance with International
Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered
Accountants of Pakistan.

19. The statutory auditors or the persons associated with them have not been appointed to provide
other services except in accordance with the listing regulations and the auditors have confirmed
that they have observed IFAC guidelines in this regard.

20. We confirm that all other material principles contained in the Code of Corporate Governance
have been complied with.

On behalf of the Board of Directors

(MOHAMMED FARUQUE)
Karachi: September 15, 2004 Chairman

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF

TRANSFER PRICING
The company has fully complied with the best practices of Transfer Pricing as contained in the Listing
Regulation No. 38 of the Karachi Stock Exchange.
On behalf of the Board of Directors

(MOHAMMED FARUQUE)
Karachi: September 15, 2004 Chairman

13
REVIEW REPORT TO THE MEMBERS ON
STATEMENT OF COMPLIANCE WITH BEST PRACTICES
OF CODE OF CORPORATE GOVERNANCE

We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate
Governance for the year ended June 30, 2004 prepared by the Board of Directors of Cherat Cement
Company Limited to comply with the Listing Regulations of the Karachi, Lahore and Islamabad Stock
Exchanges where the Company is listed.

The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors
of the Company. Our responsibility is to review, to the extent where such compliance can be objectively
verified, whether the Statement of Compliance reflects the status of the Company’s compliance with the
provisions of the Code of Corporate Governance and report if it does not. A review is limited primarily to
inquiries of the Company personnel and review of various documents prepared by the Company to comply
with the Code.

As part of our audit of financial statements we are required to obtain an understanding of the accounting
and internal control systems sufficient to plan the audit and develop an effective audit approach. We have
not carried out any special review of the internal control system to enable us to express an opinion as
to whether the Board’s statement on internal control covers all controls and the effectiveness of such
internal controls.

Based on our review, nothing has come to our attention which causes us to believe that the Statement
of Compliance does not appropriately reflect the Company’s compliance, in all material respects, with
the best practices contained in the Code of Corporate Governance, for the year under review.

FORD RHODES SIDAT HYDER & CO.

KARACHI: September 15, 2004 Chartered Accountants

14
STATEMENT OF ETHICS & BUSINESS PRACTICES

The business policy of the company is based on the principles of honesty, integrity and professionalism
at every stage.

Product Quality
Regularly update ourselves with technological advancements in the field of cement production to produce
cement under highest standards and maintain all relevant technical and professional standards.

Dealing with Employees

Provide congenial work atmosphere where all employees are treated with respect and dignity. Recognize
and reward employees based on their performance and their ability to meet goals and objectives.

Responsibility to interested parties

To be objective, fair and transparent in our dealings with people who have reposed their confidence in us.

Financial Reporting & Internal Controls

To implement an effective and transparent system of financial reporting and internal controls to safeguard
the interest of our shareholders and fulfill the regulatory requirements.

Procurement of Goods & Services

Only purchase goods and services that are tailored to our requirement and are priced appropriately.
Before taking decision about procurement of any good or service, obtain quotations from various sources.

Conflict of Interest
All the acts and decisions of the management be motivated by the interest of the company and activities
and involvements of the directors and employees in no way conflict with the interest of the company.

Adherence to laws of the land

To fulfill all statutory requirements of the Government and its regulatory bodies and follow relevant and
applicable laws of the country.

Environmental Protection
To protect environment and ensure health and safety of the work force and well-being of the people
living in the adjoining areas of our plant.

We recognize the need for working with optimum efficiency to attain desired levels of performance. We
endeavor to conduct our business with honesty and integrity and produce and supply cement with care
and competence, so that customers receive the quality they truly deserve.

15
YEARWISE STATISTICAL SUMMARY
2004 2003 2002 2001 2000 1999 1998
(Tons in ‘000’)

Clinker production 774 656 528 538 498 505 612

Cement production 802 693 555 566 521 533 671

Cement dispatched 789 706 555 564 523 532 663

ASSETS EMPLOYED (Rs. in million)

Fixed Assets 1,252 1,276 1,135 881 973 1,069 1,186

Investment and Long-term

advances & Deposits 19 19 101 12 12 11 12

Current Assets 911 601 664 713 742 665 645

Total Assets Employed 2,182 1,896 1,900 1,606 1,727 1,745 1,843

FINANCED BY
Shareholders’ Equity 1,220 1,007 1,063 908 929 887 926
Long-term Liabilities 209 312 66 35 73 185 271
Deferred Liabilities 170 170 175 178 188 167 191
Current Liabilities 583 407 596 485 537 506 455

Total Funds Invested 2,182 1,896 1,900 1,606 1,727 1,745 1,843

TURNOVER & PROFIT

Turn over (net) 2,085 1,508 1,423 1,342 2,153 1,932 2,299

Operating Profit 621 59 202 130 328 112 74

Profit before taxation 574 25 177 124 287 52 12

Profit after taxation 426 10 138 75 162 58 5

Cash dividend 213 66 120 96 120 96 -

Stock dividend 133 - - - - - -

Transfer to Reserves - - 5 - 25 - -

Transfer from Reserves - 30 - - - - -

Profit carried forward 84 4 31 2 22 6 45

19
RATIO ANALYSIS ON ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2004

2004 2003

Profitability:

1 Gross Profit (percentage) 34.30 9.96

2 Operating Profit (percentage) 29.78 3.91
3 Profit Before Tax (percentage) 27.51 1.67
4 Net Profit After Tax (percentage) 20.42 0.65
5 Net Profit to Share Holder's Equity (Average after tax) (percentage) 38.24 0.94
6 E.P.S (Before Tax) 10.78 0.47
7 E.P.S (After Tax) 8.00 0.18
8 Net Profit to Total Assets (Average after tax) (percentage) 9.98 3.88
9 Increase in Sales (Net percentage) 38.29 5.95
10 Material % of Net Sales 12.32 14.32
11 Labour % of Net Sales 5.84 7.77
12 Other Cost of Sales Expenses % of Net Sales 47.53 67.95
13 Raw & Packing Material as % of Cost of Sales 18.76 15.91
14 Administrative Expenses % of Net Sales 2.75 3.79
15 Selling Expenses % of Net Sales 1.77 2.26
16 Income Tax % of Net Sales 7.10 1.03
17 Financial, other charges, (other income) % of Net Sales 0.40 1.26

Short Term Solvency:

1 Working Capital Ratio 1.56:1 1.48:1

2 Acid Test Ratio 1.43:1 1.36:1
3 Working Capital Turnover (Net Sales) times 6.35 7.77
4 Inventory Turnover / Times 21.26 21.39

Overall Valuation and Assessment:

1 Number of Times Interest Cover (before tax profit) 31.07 1.85

2 Return on Equity after tax (Average in percentage) 38.24 0.94
3 Book Value Per Share 22.93 18.92
4 Long Term Debts to Equity Ratio (in percentage) 14.66 23.65

20
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of CHERAT CEMENT COMPANY LIMITED as at June
30, 2004 and the related profit and loss account, cash flow statement and statement of changes in equity
together with the notes forming part thereof, for the year then ended and we state that we have obtained
all the information and explanations which, to the best of our knowledge and belief, were necessary for
the purposes of our audit.

It is the responsibility of the company’s management to establish and maintain a system of internal
control, and prepare and present the above said statements in conformity with the approved accounting
standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an
opinion on these statements based on our audit.

We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
above said statements are free of any material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the above said statements. An audit also
includes assessing the accounting policies and significant estimates made by management, as well as,
evaluating the overall presentation of the above said statements. We believe that our audit provides a
reasonable basis for our opinion and, after due verification, we report that:

a) in our opinion, proper books of account have been kept by the company as required by the
Companies Ordinance, 1984;

b) in our opinion:

i) the balance sheet and profit and loss account together with the notes thereon have
been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement
with the books of account and are further in accordance with accounting policies
consistently applied;

ii) the expenditure incurred during the year was for the purpose of the company's business;
and

iii) the business conducted, investments made and the expenditure incurred during the
year were in accordance with the objects of the company;

c) in our opinion and to the best of our information and according to the explanations given to us,
the balance sheet, profit and loss account, cash flow statement and statement of changes in
equity together with the notes forming part thereof conform with approved accounting standards
as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984
in the manner so required and respectively give a true and fair view of the state of the company's
affairs as at June 30, 2004 and of the profit, its cash flows and changes in equity for the year
then ended; and

d) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of
1980) was deducted by the company and deposited in the Central Zakat Fund established under
section 7 of that Ordinance.

FORD RHODES SIDAT HYDER & CO.

KARACHI: September 15, 2004 Chartered Accountants

21
BALANCE SHEET AS AT JUNE 30, 2004

ZAHID FARUQUE AZAM FARUQUE

CHIEF EXECUTIVE DIRECTOR

22
PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDED JUNE 30, 2004

ZAHID FARUQUE AZAM FARUQUE

CHIEF EXECUTIVE DIRECTOR

23
CASH FLOW STATEMENT FOR THE YEAR
ENDED JUNE 30, 2004

ZAHID FARUQUE AZAM FARUQUE

CHIEF EXECUTIVE DIRECTOR

24
STATEMENT OF CHANGES IN EQUITY FOR
THE YEAR ENDED JUNE 30, 2004

ZAHID FARUQUE AZAM FARUQUE

CHIEF EXECUTIVE DIRECTOR

25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2004

26
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29
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40
ZAHID FARUQUE AZAM FARUQUE
CHIEF EXECUTIVE DIRECTOR

41
Pattern of shareholding as at June 30, 2004
No. of Shareholding
Shares held Percentage
shareholders From To
557 1 100 24,538 0.0461
1,381 101 500 397,441 0.7472
396 501 1,000 313,943 0.5902
1,070 1,001 5,000 2,742,688 5.1562
325 5,001 10,000 2,344,980 4.4085
195 10,001 15,000 2,363,628 4.4435
53 15,001 20,000 926,769 1.7423
58 20,001 25,000 1,366,861 2.5697
13 25,001 30,000 364,666 0.6856
10 30,001 35,000 322,204 0.6057
21 35,001 40,000 815,880 1.5338
8 40,001 45,000 341,970 0.6429
15 45,001 50,000 726,609 1.3660
5 50,001 55,000 255,980 0.4812
1 55,001 60,000 57,500 0.1081
3 60,001 65,000 184,066 0.3460
2 65,001 70,000 132,997 0.2500
2 70,001 75,000 145,772 0.2740
2 75,001 80,000 155,941 0.2932
3 80,001 85,000 247,313 0.4649
1 95,001 100,000 100,000 0.1880
1 100,001 105,000 100,264 0.1885
3 105,001 110,000 322,856 0.6070
1 110,001 115,000 112,790 0.2120
1 115,001 120,000 117,256 0.2204
3 120,001 125,000 369,411 0.6945
2 130,001 135,000 268,624 0.5050
2 145,001 150,000 293,340 0.5515
1 155,001 160,000 157,833 0.2967
1 160,001 165,000 160,262 0.3013
1 165,001 170,000 167,000 0.3140
1 175,001 180,000 180,000 0.3384
1 180,001 185,000 184,000 0.3459
1 240,001 245,000 243,560 0.4579
1 270,001 275,000 275,000 0.5170
1 285,001 290,000 288,446 0.5423
1 360,001 365,000 363,865 0.6841
1 365,001 370,000 367,196 0.6903
1 445,001 450,000 446,500 0.8394
1 470,001 475,000 473,026 0.8893
1 605,001 610,000 610,000 1.1468
1 705,001 710,000 705,376 1.3261
1 885,001 890,000 889,000 1.6713
1 975,001 980,000 978,965 1.8404
1 995,001 1,000,000 1,000,000 1.8800
1 1,060,001 1,065,000 1,060,500 1.9937
1 1,075,001 1,080,000 1,077,801 2.0262
1 1,700,001 1,705,000 1,704,900 3.2052
1 1,850,001 1,855,000 1,853,208 3.4840
1 2,505,001 2,510,000 2,508,280 4.7155
1 7,170,001 7,175,000 7,171,036 13.4813
1 14,410,001 14,415,000 14,410,311 27.0909
4,158 53,192,352 100.0000

Categories of Shareholders as at June 30, 2004

Categories No. of shareholders Shares held Percentage
Individuals 4,013 15,630,857 29.3855
Financial Institutions 37 17,086,853 32.1228
Insurance Companies 9 2,198,121 4.1324
Joint Stock Companies 71 11,735,421 22.0622
Modarabas 2 11,875 0.0223
Modarabas Management Co. 1 6,300 0.0118
Mutual Funds 4 351,762 0.6613
Leasing Company 1 5,000 0.0094
Investment Companies 6 5,106,614 9.6003
Others 14 1,059,549 1.9919
4,158 53,192,352 100.0000

42
Pattern of Shareholding as at June 30, 2004
Additional Information
Shareholders' Category Shares Held

Associated Companies

Faruque (Private) Limited 7,171,036

Mirpurkhas Sugar Mills Limited 2,508,280
Greaves Pakistan (Private) Limited 978,965
Cherat Papersack Limited 123,125

Government Institutions

National Bank of Pakistan (Trustee Deptt.) 14,410,311

National Investment Trust Limited 15,650
National Investment Trust Ltd. (Admin. Fund) 24,256

Directors and Chief Executive

Mr. Mohammed Faruque 5,800

Mr. Zahid Faruque 288,446
Mr. Iqbal Faruque 6,500
Mr. Akbarali Pesnani 25,000
Mr. Azam Faruque 133,862

Directors'/Chief Executive’s spouses

Mrs. Nighat Faruque 107,356

W/o Mr. Mohammed Faruque

Mrs. Asmat Faruque 62,550

W/o Mr. Zahid Faruque

Mrs. Sakina Pesnani 16,675

W/o Mr. Akbarali Pesnani

Mrs. Samia Faruque 15,875

W/o Mr. Azam Faruque

Executives 107,313

Banks, Development Finance 10,311,308

Institutions, Non-banking Finance
Institutions, Insurance Companies
Modarabas and Mutual Funds

Shareholders holding 10% or

more voting interest

Faruque (Private) Limited 7,171,036

National Bank of Pakistan (Trustee Deptt.) 14,410,311

43
 TWENTY THIRD ANNUAL GENERAL MEETING 2004
Registered Foilio/
Participant’s ID No. &
A/c. No.

No. of Shares held

PROXY FORM

IMPORTANT

Instruments of Proxy will not be considered as

valid unless deposited or received at the
Company’s Registered Office at Modern
Motors House, Beaumont Road, Karachi-75530
not later than 48 hours before the time of
holding the meeting.

I/we

of

being a member of CHERAT CEMENT COMPANY LIMITED, hereby appoint

of another member of the company

as my/our proxy to attend & vote for me/us and on my/our behalf at the 23rd Annual General Meeting
of the Company to be held on Wednesday, 27th October 2004 at 2:00 p.m. and at any adjournment
thereof.

WITNESS :
(1) Signature Please affix
Name five rupees
Signature of
Address revenue
Shareholder
stamp
NIC or Passport No.

(2) Signature
Name
Address

NIC or Passport No.

Date: 2004