Half Yearly Report December 2011 - Colgate Palmolive Pakistan

CONTENTS 

Page 

COMPANY INFORMATION 2 

DIRECTORS’ REVIEW 3-4 

AUDITORS’ REPORT TO THE MEMBERS 

ON REVIEW OF INTERIM FINANCIAL INFORMATION 5 

CONDENSED INTERIM BALANCE SHEET 6 

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT 7 

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 8 

CONDENSED INTERIM CASH FLOW STATEMENT 9 

NOTES TO AND FORMING PART OF THE CONDENSED 

INTERIM FINANCIAL STATEMENTS 10-18 

1

COMPANY INFORMATION 

BOARD OF DIRECTORS 

Iqbal Ali Lakhani 

Amin Mohammed Lakhani 

Tasleemuddin Ahmed Batlay 

Jerome Graham Webb 

Derrick Samuel 

A. Aziz H. Ebrahim 

Zulfiqar Ali Lakhani 

ADVISOR 

Sultan Ali Lakhani 

AUDIT COMMITTEE 

Iqbal Ali Lakhani 

Amin Mohammed Lakhani 


COMPANY SECRETARY 

Mansoor Ahmed 

AUDITORS 

A. F. Ferguson & Co. 

Chartered Accountants 

INTERNAL AUDITORS 

BDO Ebrahim & Co. 


REGISTERED OFFICE 

Lakson Square, Building No. 2, 

Sarwar Shaheed Road, 

Karachi-74200 

Pakistan 

SHARES REGISTRAR 

FAMCO Associates (Private) Limited 

State Life Building No. 1-A, 1st Floor, 

I.I. Chundrigar Road, Karachi. 

Chairman 

Chief Executive 

Chairman 

FACTORIES 

G-6, S.I.T.E., Kotri 

District Jamshoro (Sindh) 

217, Sundar Industrial Estate 

Raiwind Road, Lahore 

WEBSITE 

2 

www.colgate.com.pk

DIRECTORS’ REVIEW 

The Directors are pleased to present the financial statements of the Company for the half year ended 

December 31, 2011. 

Financial results of the Company are as under: 

FINANCIAL RESULTS 

July- December 

2011 

July- December 

2010 

Increase/ 

Decrease 

Rupees in million Rupees in million % 

Turnover 11,095 8,355 +32.8 

Gross Profit 2,5471,879 +35.6 

- as % age to net sale 28.5% 28.6% -10 bps 

Selling and distribution costs 1,248 1,001 +24.7 


Administrative expenses 89 76 +17.6 


Profit from Operations 1,136 759 +49.7 

NPAT 753 496 +51.7 

Earning per share (restated) Rs. 20.73 13.67 +51.6 

The Company's growth momentum continued during the period ended December 31, 2011. Turnover 

grew by 32.8%. This growth is on the back of significant volume growth, where all major brands of 

the company contributed. 

During the period, the company's absolute gross profit increased by 35.6%, although the gross profit 

% remained stable at 28.5%. Our ongoing cost saving initiatives with our timely SPIs enabled 

offsetting escalating input costs, and helped in maintaining the gross profit percentage. 

The selling and distribution cost increased by 24.7%, largely due to the increased advertising which 

was vital to support the growing trend in company's revenues. A very competitive and active year 

from competition also meant that advertising had to be increased to defend our own business. 

However, it is noteworthy that in terms of percentage to sales, selling and distribution cost has 

decreased by 130 bps. 

This half year result shows an increase in the net profit after tax (NPAT) by 51.7%. Earning per Share 

has also increased by 51.6 % to Rs 20.73 per share as compared to Rs.13.67 per share for the 

same period last year. 

3

FUTURE PROSPECTS 

Overall the business environment remains challenging due to prevailing political uncertainty, energy 

crisis and security situation. The competitive environment has been the most active in recent times 

and is expected to continue for the year ahead. However, the company is focused to reduce its cost 

and expand its volume base by investing in plant & machinery as well as in the brands. The 

management of your company is committed to maintain the growth trend in future by implementing 

aggressive marketing plans across all categories. 

ACKNOWLEDGMENTS 

The Company wishes to acknowledge and thank its customers, shareholders, suppliers, bankers 

and all other stakeholders for their continued support & cooperation. 

On behalf of Board of Directors 

Karachi : January 27, 2012 

IQBAL ALI LAKHANI 

Chairman 

4

A.F.FERGUSON & CO. 

AUDITORS' REPORT TO THE MEMBERS 

ON REVIEW OF INTERIM FINANCIAL INFORMATION 

Introduction 

We have reviewed the annexed condensed interim balance sheet of Colgate-Palmolive 

(Pakistan) Limited as at December 31, 2011 and the related condensed interim profit and 

loss account, condensed interim changes in equity, condensed interim cash flow statement 

and the notes forming part thereof for the six months period then ended (here-in-after 

referred to as the interim financial information). Management is responsible for the 

preparation and presentation of the interim financial information in accordance with 

approved accounting standards as applicable in Pakistan for interim financial reporting. 

Our responsibility is to express a conclusion on this interim financial information based 

on our review. The figures included in the condensed interim profit and loss account for 

the quarters ended December 31, 2011 and 2010 and the notes forming part thereof have 

not been reviewed as we are required to review only the cumulative figures for the six 

months period ended December 31, 2011. 

Scope of Review 

We conducted our review in accordance with International Standard on Review Engagements 

2410, 'Review of Interim Financial Information Performed by the Independent Auditor of 

the Entity'. A review of interim financial information consists of making inquiries, primarily 

of persons responsible for financial and accounting matters, and applying analytical and 

other review procedures. A review is substantially less in scope than an audit conducted 

in accordance with International Standards on Auditing and consequently does not enable 

us to obtain assurance that we would become aware of all significant matters that might 

be identified in an audit. Accordingly, we do not express an audit opinion. 

Conclusion 

A member firm of 

A. F. Ferguson & Co 


State Life Building No. 1-C 

I.I.Chundrigar Road, P.O.Box 4716 

Karachi-74000, Pakistan 

Telephone: (021) 32426682-6 / 32426711-5 

Facsimile: (021) 32415007 / 32427938 

Based on our review, nothing has come to our attention that causes us to believe that the 

annexed interim financial information as of and for the six months period ended December 

31, 2011 is not prepared, in all material respects, in accordance with approved accounting 

standards as applicable in Pakistan for interim financial reporting. 


Karachi, January 27, 2012 

5

CONDENSED INTERIM BALANCE SHEET (Unaudited - Note 2) 

As at December 31, 2011 

Note December 31, 


June 30, 


(Rupees in ’000) 

ASSETS 

NON-CURRENT ASSETS 

Long term loans 10,106 13,528 

Long term security deposits 9,181 9,181 

Property, plant and equipment 

Intangible assets 

4 

5 

2,769,906 

13,154 

2,680,784 

18,775 

2,802,3472,722,268 

CURRENT ASSETS 

Trade debts 424,325 321,073 

Loans and advances 6 205,125 92,674 

Trade deposits and short term prepayments 749,731 22,925 

Other receivables 8 19,945 50,473 

Profit receivable from banks 31 13 

Taxation 222,480 174,573 

Cash and bank balances 654,860 618,843 

Stores and spares 

Stock in trade 

50,010 

2,153,983 

36,353 

2,370,938 

3,780,490 3,687,865 

6,582,8376,410,133 

EQUITY AND LIABILITIES 

SHARE CAPITAL AND RESERVES 

Authorised share capital 

40,000,000 ordinary shares of Rs 10 each 400,000 400,000 

Issued, subscribed and paid-up share capital 

Reserves 

9 363,295 

4,321,341 

315,909 

4,057,766 

4,684,636 4,373,675 

LIABILITIES 

NON-CURRENT LIABILITIES 

Deferred taxation 446,257354,473 

Long term deposits 14,42713,945 

460,684 368,418 

CURRENT LIABILITIES 

Trade and other payables 

Accrued markup 

10 1,437,156 

361 

1,667,916 

124 

1,437,517 1,668,040 

1,898,201 2,036,458 

CONTINGENCIES AND COMMITMENTS 11 

6,582,837 6,410,133 

The annexed notes 1 to 15 form an integral part of this condensed interim financial report. 

6 




Director

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (Unaudited - Note2) 

For the Quarter and Six months period ended December 31, 2011 

Note 

Turnover 5,738,568 4,456,018 11,094,961 8,354,987 

Sales tax (832,442) (672,633) (1,618,707) (1,266,509) 

Special excise duty - (34,947) - (65,777) 

Trade discounts (263,744) (237,129) (545,146) (460,100) 

Net turnover 4,642,382 3,511,309 8,931,108 6,562,601 

Cost of sales (3,343,535) (2,496,156) (6,384,305) (4,683,976) 

Gross profit 1,298,847 1,015,153 2,546,803 1,878,625 

Selling and distribution costs (657,088) (511,601) (1,248,374) (1,001,143) 

Administrative expenses (45,614) (39,497) (88,813) (75,495) 

Other operating expenses (50,262) (40,334) (97,810) (72,803) 

Other operating income 10,722 11,043 23,706 29,446 

Profit from operations 556,605 434,764 1,135,512 758,630 

Finance costs (3,778) (2,792) (10,174) (5,453) 

Profit before taxation 552,827 431,972 1,125,338 753,177 

Taxation: 

- Current - for the period 80,320 155,000 280,320 271,000 

- for prior years - (51) - (191) 

- Deferred 93,843 (9,174) 91,784 (14,174) 

(174,163) (145,775) (372,104) (256,635) 

Profit after taxation 378,664 286,197 753,234 496,542 

Other comprehensive income for the period 

Quarter ended 

December 31, 


Quarter ended 


2010 


Six months 

period ended 



Unrealised gain on investments 

classified as 'available for sale - 2,825 - 4,210 

Total comprehensive income for the period 378,664 289,022 753,234 500,752 

Earnings per share (Rupees) - restated 12 10.42 7.88 20.73 13.67 


Six months 

period ended 


2010 




Director 

7

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited - Note 2) 

For the Six months period ended December 31, 2011 

Balance as at July 1, 2010 

Comprehensive income for the period 

Net profit for the six months period ended 

December 31, 2010 

Other comprehensive income 

Unrealised gain on investments classified 

as available for sale 

Transfer to general reserve 

Total other comprehensive income 

Total comprehensive income for the six months 

period ended December 31, 2010 

Transactions with owners 

Final dividend for the year ended June 30, 2010 

(Rs 13.50 per share) 

Bonus shares issued at the rate of three share 

for every twenty shares held 

Issued, 

subscribed 

and paid up 

share capital 

274,704 

- 

- 

- 

- 

- 

- 

41,205 

Capital 

reserveshare 

premium 

13,456 

- 

- 

- 

- 

- 

- 

- 

Revenue reserves Surplus on 

General 

Unappropriated 

of 

revaluation 

reserve 

profit investments 

(Rupees in ‘000) 

2,130,000 1,158,986) - 

- 

- 

740,000 

740,000 

740,000 

- 

- 

496,542) 

- 

(740,000) 

(740,000) 

(243,458) 

(370,850) 

(41,205) 

- 

4,210 

- 

4,210 

4,210 

- 

- 

Total 

3,577,146) 

496,542) 

4,210) 

- 

4,210) 

500,752) 

(370,850) 

- 

Total transactions with owners 

41,205 

- 

- 

(412,055) 

- 

(370,850) 

Balance as at December 31, 2010 

315,909 

13,456 

2,870,000 

503,473) 

4,210 

3,707,048) 

Balance as at July 1, 2011 

Comprehensive income for the period 

Net profit for the six months period ended 

December 31, 2011 

Other comprehensive income 

315,909 

- 

13,456 

- 

2,870,000 

- 

1,174,310) 

753,234) 

- 

- 

4,373,675) 

753,234) 

Transfer to general reserve 

- 

- 

680,000 

(680,000) 

- 

- 

Total other comprehensive income 

- 

- 

680,000 

(680,000) 

- 

- 

Total comprehensive income for the six months 

period ended December 31, 2011 

Transactions with owners 

- 

- 

680,000 

73,234) 

- 

753,234) 

Final dividend for the year ended June 30, 2011 

(Rs 14 per share) 

Bonus shares issued at the rate of three share 

for every twenty shares held 

- 

47,386 

- 

- 

- 

- 

(442,273) 

(47,386) 

- 

- 

(442,273) 

- 

Total transactions with owners 

47,386 

- 

- 

(489,659) 

- 

(442,273) 

Balance as at December 31, 2011 

363,295 

13,456 

3,550,000 

757,885) 

- 

4,684,636) 


8 




Director

CONDENSED INTERIM CASH FLOW STATEMENT (Unaudited - Note 2) 


Note 

Six months 

period ended 




Six months 

period ended 


2010 

CASH FLOWS FROM OPERATING ACTIVITIES 

Cash generated from operations 13 1,035,877 709,736 

Finance costs paid (9,937) (5,399) 

Taxes paid (328,227) (265,910) 

Long term loans 4,626 (1,917) 

Long term security deposits - (2,295) 

Long term deposits 482 150 

Net cash inflows from operating activities 702,821 434,365 

CASH FLOWS FROM INVESTING ACTIVITIES 

Fixed capital expenditure (241,137) (358,548) 

Purchase of Intangible assets (2,188) - 

Sale proceeds on disposal of property, plant and equipment 4,077 4,535 

Profit on bank deposits received 14,016 26,483 

Purchase of short term investments - (200,000) 

Profit on short term investments received 61 89 

Sale proceeds on disposal of short term investments - 101,107 

Net cash outflows due to investing activities (225,171) (426,334) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Long term loan - (625) 

Dividend paid (441,633) (370,392) 

Net cash outflows due to financing activities (441,633) (371,017) 

Net increase / (decrease) in cash and cash equivalents 36,017 (362,986) 

Cash and cash equivalents at the beginning of the period 618,843 1,088,021 

Cash and cash equivalents at the end of the period 654,860 725,035 





Director 

9

NOTES TO AND FORMING PART OF THE 

CONDENSED INTERIM FINANCIAL REPORT (Unaudited - Note 2) 


1. STATUS AND NATURE OF BUSINESS 

Colgate-Palmolive (Pakistan) Limited (“the company”) was initially incorporated in 

Pakistan on December 5, 1977 as a public limited company with the name of National 

Detergents Limited. The name of the company was changed to Colgate-Palmolive 

(Pakistan) Limited on March 28, 1990 when the company entered into a Participation 

Agreement with Colgate-Palmolive Company, USA. The company is listed on the 

Karachi and Lahore Stock Exchanges. The registered office of the company is situated 

at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi. 

The company is mainly engaged in the manufacture and sale of detergents, personal 

care and other related products. 

2. STATEMENT OF COMPLIANCE 

2.1 This condensed interim financial report of the company for the six months period 

ended December 31, 2011 has been prepared in accordance with the requirements 

of the International Accounting Standard 34 - 'Interim Financial Reporting' and provisions 

of and directives issued under the Companies Ordinance, 1984 (the Ordinance). In 

case where requirements differ, the provisions of or directives issued under the 

Ordinance have been followed. 

2.2 This condensed interim financial report comprises of the condensed interim balance 

sheet as at December 31, 2011 and the condensed interim profit and loss account, 

condensed interim statement of changes in equity and the condensed interim cash 

flow statement for the six months period then ended which have been subjected to 

a review but not audited. This condensed interim financial report also includes the 

condensed interim profit and loss account for the quarter ended December 31, 2011 

which is not subject to a review. 

2.3 The comparative condensed balance sheet, presented in this condensed interim 

financial report, as at June 30, 2011 has been extracted from the annual audited 

financial statements of the company for the year ended June 30, 2011 whereas the 

comparative condensed interim profit and loss account, condensed interim statement 

of changes in equity and condensed interim cash flow statement for the six months 

period ended December 31, 2010 were subjected to a review but not audited. The 

comparative condensed profit and loss account for the quarter ended December 31, 

2010 included in this condensed interim financial report was not subject to a review. 

2.4 Standards, amendments to published approved accounting standards and interpretations 

effective from July 1, 2011: 

10 

There are certain new standards, amendments and International Financial Reporting 

Interpretations Committee (IFRIC) interpretations that became effective during the

period and are mandatory for accounting periods beginning on or after July 1, 2011 

but are considered not to be relevant or have any significant effect on the company's 

operations and are, therefore, not disclosed in this condensed interim financial report. 

2.5 Standards, amendments to published approved accounting standards and interpretations 

as adopted in Pakistan, that are not yet effective: 

There are other amendments to the standards and new interpretations that are 

mandatory for accounting periods beginning on or after July 1, 2012 but are considered 

not to be relevant or do not have any significant effect on company's operations and 

are, therefore, not detailed in this condensed interim financial report. 

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The accounting policies and the methods of computation adopted in the preparation 

of this condensed interim financial report are the same as those applied in the 

preparation of the financial statements for the year ended June 30, 2011. 

4. PROPERTY, PLANT AND EQUIPMENT 




June 30, 


Operating fixed assets - notes 4.1 and 4.2 2,646,766 2,088,144 

Capital work-in-progress - note 4.3 123,140 592,640 

2,769,906 2,680,784 

4.1 Additions - operating fixed assets (at cost) 

Six months 

period ended 


Six months 

period ended 



2010 


Leasehold land - 30,664 

Factory building on leasehold land 4,630 207 

Plant and machinery 556,661 7,739 

Electric fittings and installation 15,694 310 

Furniture and fixtures 8,058 696 

Tools and equipment 90,327 3,214 

Vehicles 21,271 6,205 

Computers and accessories 12,091 3,337 

Office equipment 1,905 986 

710,637 53,358 

4.1.1 Additions include transfers from capital work-in-progress. 

11

4.2 Disposals - operating fixed assets (at cost) 

Six months 

period ended 


Six months 

period ended 



2010 


Furniture and fixtures - 1,000 

Vehicles 4,550 5,302 

Plant and machinery 2,415 - 

Computers and accessories 594 382 

Office equipment 275 508 

7,834 7,192 

4.3 Additions - capital work in progress (at cost) 

Factory building on leasehold land 23,657 61,924 

Plant and machinery 91,186 193,852 

Electric fittings and installation 5,864 24,340 

Tools and equipment 3,151 5,818 

Vehicle - 406 

Computer and accessories - 915 

Furniture and fixtures 6,622 16,587 

Office equipment 1,094 376 

131,574 304,218 

4.4 Included in fixed assets are few items having cost of Rs 26.630 million (June 30, 2011: 

Rs 29.045 million) held by related parties and of Rs 43.051 million (June 30, 2011: 

Rs 42.375 million) held by third parties for manufacturing certain products for the 

company. These fixed assets are free of lien and the company has full rights of 

repossession of these assets. 

5. INTANGIBLE ASSETS 

5.1 Additions - intangibles (at cost) 

Computer Software 2,188 - 

12

6. LOANS AND ADVANCES 




June 30, 


Considered good 

Current portion of long term loans 

- due from executives 2,304 3,017 

- due from other employees 7,252 7,743 

9,556 10,760 

Advances 

- to employees - note 6.1 10,474 9,899 

- to contractors and suppliers - note 6.2 101,394 72,015 

111,868 81,914 

Margin against letter of credit 83,701 - 

205,125 92,674 

6.1 Advances to employees are provided to meet business expenses and are settled as 

and when the expenses are incurred. 

6.2 Included in advances to contractors and suppliers is an amount of Rs 6.019 million 

(June 30, 2011: Rs 2.996 million) given to related parties. 

7. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS 

Security deposits 4,775 5,780 

Prepayments 44,956 17,145 

49,731 22,925 

8. OTHER RECEIVABLES 

Receivable from related parties - note 8.1 9,364 7,930 

Special excise duty claimable 9,421 - 

Claims receivable from an insurance company 675 500 

Sales tax refundable - 41,439 

Others 485 604 

19,945 50,473 

8.1 Other receivables include the following amounts due from related parties: 

Century Insurance Company Limited - 134 

Clover Pakistan Limited 190 742 

Tetley Clover (Private) Limited 3,815 7,054 

Employee gratuity fund 5,359 - 

9,364 7,930 

13

9. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL 

December 31, June 30, 



(Number of shares) 





5,882,353 5,882,353 Ordinary shares of 58,824 58,824 

Rs. 10 each fully paid 

in cash 

30,447,141 25,708,512 Ordinary shares of 304,471 257,085 

Rs. 10 each issued 

as fully paid bonus 

shares 

36,329,494 31,590,865 363,295 315,909 

10. TRADE AND OTHER PAYABLES 

Trade creditors - note 10.1 499,101 485,428 

Accrued liabilities - note 10.2 363,757 332,395 

Bills payable 213,758 596,214 

Amounts due to distributors 25,329 19,801 

Special excise duty payable - 7,792 

Sales tax payable 92,308 - 

Royalty payable to an associated undertaking 97,962 63,999 

Workers’ profits participation fund 59,267 95,821 

Workers’ welfare fund 59,550 36,412 

Retention money payable 7,898 9,545 

Unclaimed dividend 3,245 2,605 

Others - note 10.3 14,981 17,904 

1,437,156 1,667,916 

10.1 This includes Rs 57.033 million (June 30, 2011: Rs 36.359 million) payable to related 

parties. 


parties. 


parties. 

14

11. CONTINGENCIES AND COMMITMENTS 

11.1 Contingencies 

11.1.1 As a result of a recovery suit of Rs 31.455 million alongwith interest at the rate of 

thirteen percent (13%) per annum filed by the Octroi Contractor against the 

Government of Sindh, Union Council Bulari and Kotri Association of Trade and 

Industries (KATI) in the Civil Court, the Honorable Senior Judge issued a decree 

of Rs 7.336 million in favour of Octroi Contractor. KATI had filed an appeal in the 

High Court of Sindh, whereas, the Octroi Contractor had also filed an appeal 

requesting to enhance the amount of decree. Subsequently, the case was transferred 

to the Additional District Judge Kotri by the High Court of Sindh. The District Judge 

allowed the appeal in favour of KATI and remanded the case to Senior Civil Judge 

Kotri for adjudication. The relevant case has been dismissed by the Senior Civil 

Judge in favour of KATI. Subsequently, the Octroi contractor has filed an appeal 

in the District Court Jamshoro against the dismissal. If the contractor's appeal is 

decided in its favour, then the company, being a member of KATI, would be required 

to pay its share as determined by the Court out of the total decree amount. The 

management of the company, based on the advice of its legal counsel handling 

the subject matter, is confident that the appeal will be decided in favour of KATI. 

Accordingly, no provision has been made in the financial statements on this account. 

11.1.2 Cases have been filed against the company by some employees claiming 

approximately Rs 1.641 million (June 30, 2011: Rs 1.541 million) in aggregate. 

Provision has not been made in these financial statements for the aforementioned 

amounts as the management of the company, based on the advice of its legal 

counsel handling the subject cases, is of the opinion that matters shall be decided 

in the company's favour. 

11.1.3 Post dated cheques have been issued to custom authorities as a security in respect 

of duties and taxes amounting to Rs 331.314 million (June 30, 2011: Rs 382.324 

million) payable at the time of exbonding of imported goods. In the event the goods 

are not cleared from custom warehouse within the prescribed time period, cheques 

issued as security shall be encashable. 

11.1.4 Contingent liabilities in respect of indemnities given to financial institutions for 

guarantees issued by them on behalf of the company in the normal course of 

business aggregate Rs 21 million (June 30, 2011: Rs 21 million). 

11.2 Commitments 

11.2.1 Commitments in respect of capital expenditure amount to Rs 42.492 million (June 

30, 2011: Rs 101.898 million). 

11.2.2 Outstanding letters of credit and acceptances amount to Rs 773.701 million (June 


11.2.3 Outstanding duties leviable on clearing of stocks amount to Rs 9.036 million (June 


15

12. EARNINGS PER SHARE 

Quarter ended 



Quarter ended 


2010 


Six months 

period ended 



Six months 

period ended 


2010 

Profit after taxation 378,664 286,197 753,234 496,542 

(Number of shares) 

Weighted average number of 

ordinary shares outstanding 

during the period (restated) 36,329,494 36,329,494 36,329,494 36,329,494 

(Rupees) 

Earnings per share (restated) 10.42 7.88 20.73 13.67 

12.1 There were no dilutive potential ordinary shares outstanding as at December 31, 

2011. 

13. CASH GENERATED FROM OPERATIONS 

Six months 

period ended 




Six months 

period ended 


2010 

Profit before taxation 1,125,338 753,177 

Adjustment for non-cash charges and other items: 

Depreciation and amortisation expense 157,060 90,188 

Gain on disposal of property, plant and equipment (1,907) (1,702) 

Property, plant and equipment written off 594 233 

Provision for doubtful debts 75 2,386 

Profit on bank deposits (14,034) (23,273) 

Profit on short term investment (61) (89) 

Profit on disposal of short term investments - (1,107) 

Finance costs 10,174 5,453 

Exchange loss 3,327 2,929 

Working capital changes - note 13.1 (244,689) (118,459) 

1,035,877 709,736 

16

13.1 Working capital changes 

Six months 

period ended 




Six months 

period ended 


2010 

(Increase) / decrease in current assets: 

Stores and spares (13,657) (8,265) 

Stock in trade 216,955 (145,243) 

Trade debts (103,327) (55,706) 

Loans and advances (113,655) (84,113) 

Trade deposits and short term prepayments (26,806) (38,797) 

Other receivables 30,528 (10,459) 

(9,962) (342,583) 

(Decrease) / increase in current liabilities: 

Trade and other payables (234,727) 224,124 

(244,689) (118,459) 

14. TRANSACTIONS WITH RELATED PARTIES 

Relationship 

with the 

Company 

Six months 

period ended 


Six months 

period ended 



2010 


Sale of goods, services and reimbursement 

of expenses Associates / 

Related Party 398,235 225,083 

Purchase of goods and services received 

and reimbursement of expenses Associates / 

Related Party 1,673,694 1,325,073 

Purchase of short term investments Associates - 200,000 

Sale proceeds on redemption of short 

term investments Associates - 101,107 

Profit on short term investments Associates 61 - 

Rent, allied and other charges Associates / 


Royalty charges Associates 40,363 31,701 

Insurance claims receivedAssociates 1,595 659 

Insurance commission income Associates 4,679 2,390 

Purchase of property, plant and equipment Associates 2,042 31,522 

Sale of property, plant and equipment Associates 1,200 - 

Contribution to staff retirement benefits 

Retirement 

benefit fund18,236 16,088 

Key management personnel compensation Directors 17,973 15,994 

Donation Associates 9,250 10,459 

Dividend paid Associates / 


17

Relationship 

with the 

Company 





Receivable against sale of goods Associates 50,178 718 

Loans and advances Associates Refer note 6 

Other receivables from related parties Associates Refer note 8 

Royalty payable to associated undertaking Associates Refer note 10 

Due from gratuity fundRetirement benefit fundRefer note 8 

Payable against purchase of goods Associates Refer note 10 

15. DATE OF AUTHORISATION FOR ISSUE 

This condensed interim financial report was authorised for issue on January 27, 

2012 by the Board of Directors of the Company. 




Director 

18

THIS PAGE LEFT BLANK

THIS PAGE LEFT BLANK

Half Yearly Report December 2011 - Colgate Palmolive Pakistan

Create successful ePaper yourself

Delete template?

Save as template?