Third Quarter Report - Colgate Palmolive Pakistan

Third Quarter Report
January - March 2013

CONTENTS
Page
COMPANY INFORMATION 2
DIRECTORS’ REVIEW 3-4
CONDENSED INTERIM BALANCE SHEET 5
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT 6
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 7
CONDENSED INTERIM CASH FLOW STATEMENT 8
NOTES TO AND FORMING PART OF THE CONDENSED
INTERIM FINANCIAL STATEMENTS 9-19
1

COMPANY INFORMATION
BOARD OF DIRECTORS
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
Jerome Graham Webb
Mukul Deoras
A. Aziz H. Ebrahim
Zulfiqar Ali Lakhani
ADVISOR
Sultan Ali Lakhani
AUDIT COMMITTEE
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
HUMAN RESOURCE &
REMUNERATION COMMITTEE
Iqbal Ali Lakhani
Zulfiqar Ali Lakhani
A. Aziz H. Ebrahim
COMPANY SECRETARY
Mansoor Ahmed
AUDITORS
A. F. Ferguson & Co.
Chartered Accountants
INTERNAL AUDITORS
BDO Ebrahim & Co.
Chartered Accountants
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.
FACTORIES
G-6, S.I.T.E., Kotri
District Jamshoro (Sindh)
217, Sundar Industrial Estate
Raiwind Road, Lahore
WEBSITE
www.colgate.com.pk
2
Chairman
Chief Executive
Chairman
Chairman

DIRECTORS’ REVIEW
The Directors are pleased to present the un-audited financial statements of the Company for the
third quarter and nine months period ended March 31, 2013.
Financial Highlights
Financial results of the Company are summarized below:
Turnover
Jan-Mar Jan-Mar
2013 2012
Rs. in million
6,597 6,134
Variance
%
7.5%
July-Mar July-Mar
2012-13 2011-12
Rs. in million
18,648 17,229
Variance
%
8.2%
Gross Profit
1,516
1,515
0.1%
4,192
4,061
3.2%
- as % age to Net Sales
29.01%
30.79%
(178)bps
28.24%
29.32%
(108)bps
Selling & Distribution Costs
774
787
-1.6%
2,282
2,035
12.2%
- as % age to Net Sales
14.82%
15.99%
(117)bps
15.38%
14.69%
69bps
Administrative Expenses
47
47
-1.0%
135
136
-0.6%
- as % age to Net Sales
0.89%
0.96%
(07)bps
0.91%
0.98%
(07)bps
Profit from Operations
653
642
1.7%
1,704
1,777
-4.1%
Profit After Tax
436
395
10.4%
1,183
1,148
3.0%
Earnings per Share (Restated) Rs.
10.00
9.05
10.4%
27.13
26.33
3.0%
The Company revenue growth achieved at 7.5% was only marginally higher for the quarter ended
March 31, 2013 due to various reasons. Some of those include the continuing competitive pressure,
as well as the unstable political and economic conditions. However, the Company was still able to
achieve an increase of 10.4% in absolute Profit after tax. This was largely due to reduction in general
& administrative expenses and increased income from investments.
On a nine months basis, the Company has registered a growth of 8.2%. The decline in Gross Profit
as a percentage of Net Sales was mainly caused by an adverse exchange rate movement, resulting
in higher raw material costs coupled with increased depreciation expense due to major investments
in plant & machinery.
Selling & Distribution costs for the nine months ended increased by 12.2% owing to a needed
increase in advertisement & sales promotion spend, employee related expenses and transportation
costs. We have been able to reduce our administrative expenses by 0.6% with a strict control on
costs applied by the management. As a result the net profit after tax for the nine months period
increased by 3.0% in absolute terms.
3

Home and Personal Care Categories
Our focus remained on defending market share, as competitors' spend in all the key categories
increased. Our new Integrated Marketing Communication Strategy in the Oral Care category helped
in growing our share during this period. In Home Care, we continued the advertising and promotion
investment to fortify our leadership in detergents and dish washing categories. Reaching consumers
and shoppers for an experiential engagement with our brands remained at the core of all our
promotional activations.
Future Outlook
It is a volatile time for businesses in Pakistan, as elections are around the corner and things are
uncertain. The political condition of the country is fragile and coupled with the election factor, it is
often difficult to execute strategic plans on time.
The competition has been very aggressive, and is expected to intensify its' spending in our three
main categories namely; toothpaste, dish washing and detergents.
The perennial problems of the energy crisis, the weakening currency and the law & order situation
will continue to deter uninterrupted business workings.
Acknowledgement
We thank our customers for their trust in our brands and our shareholders, bankers and suppliers
for their continued support. We also thank our employees for their relentless efforts and acknowledge
their continued support, commitment and loyalty.
On behalf of Board of Directors
Karachi : April 25, 2013
IQBAL ALI LAKHANI
Chairman
4

CONDENSED INTERIM BALANCE SHEET (Unaudited - Note 2)
As at March 31, 2013
Note March 31,
2013
June 30,
2012
(Rupees in ’000)
ASSETS
NON-CURRENT ASSETS
Long term loans 12,174 9,452
Long term security deposits 13,552 10,712
Property,plant and equipment
Intangible assets
5
6
3,142,091
3,880
2,863,125
6,341
3,171,697 2,889,630
CURRENT ASSETS
Stores and spares 70,137 64,952
Stock in trade 7 2,149,490 2,852,671
Trade debts 633,895 492,437
Loans and advances 8 120,859 92,344
Trade deposits and short term prepayments 9 63,694 20,198
Other receivables 10 33,385 20,936
Profit receivable from banks 283 29
Taxation 313,223 369,239
Short term investments - available for sale 11 964,330 255,329
Cash and bank balances 991,331 837,882
5,340,627 5,006,017
TOTAL ASSETS 8,512,324 7,895,647
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital
75,000,000 ordinary shares of Rs.10 each 12 750,000 400,000
Issued,subscribed and paid-up share capital 12 435,954 363,295
Reserves 5,789,246 5,187,742
Surplus on revaluation of investments - net of tax 20,057 3,189
6,245,257 5,554,226
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation 465,561 458,872
Long term deposits 17,654 14,748
483,215 473,620
CURRENT LIABILITIES
Trade and other payables 13 1,783,844 1,867,778
Accrued mark-up 8 23
1,783,852 1,867,801
TOTAL LIABILITIES 2,267,067 2,341,421
CONTINGENCIES AND COMMITMENTS 14
TOTAL EQUITY AND LIABILITIES 8,512,324 7,895,647
The annexed notes 1 to 19 form an integral part of this condensed interim financial
statements.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
5

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (Unaudited - Note 2)
For the Quarter and Nine months period ended March 31, 2013
Note
Quarter ended
March 31,
2013
Quarter ended
March 31,
2012
(Rupees in ’000)
Nine months
period ended
March 31,
2013
Nine months
period ended
March 31,
2012
Turnover 6,596,773 6,134,448 18,648,278 17,229,409
Sales tax (995,587) (924,763) (2,814,035) (2,543,470)
Trade discounts (374,786) (290,292) (991,504) (835,438)
Net turnover 5,226,400 4,919,393 14,842,739 13,850,501
Cost of sales (3,710,350) (3,404,825) (10,651,032) (9,789,130)
Gross profit 1,516,050 1,514,568 4,191,707 4,061,371
Selling and distribution costs (774,393) (786,717) (2,282,412) (2,035,091)
Administrative expenses (46,738) (47,221) (135,265) (136,034)
Other operating expenses (60,892) (55,939) (129,142) (153,749)
Other operating income 19,092 16,893 59,195 40,599
Profit from operations 653,119 641,584 1,704,083 1,777,096
Finance cost (3,595) (3,770) (11,166) (13,944)
Profit before taxation 649,524 637,814 1,692,917 1,763,152
Taxation
- Current - for the period 219,509 233,680 537,500 514,000
- for prior years’ (1,817) - (31,864) -
- Deferred (4,355) 9,520 4,505 101,304
(213,337) (243,200) (510,141) (615,304)
Profit after taxation 436,187 394,614 1,182,776 1,147,848
Other comprehensive income for the period
Surplus on investments categorised
as 'available for sale’ 9,783 - 18,705 -
Deferred tax (961) - (1,837) -
8,822 - 16,868 -
Total comprehensive income for the period 445,009 394,614 1,199,644 1,147,848
Earnings per share (Rupees) - restated 15 10.00 9.05 27.31 26.33
The annexed notes 1 to 19 form an integral part of this condensed interim financial statements.
6
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited Note -2)
For the Nine months period ended March 31, 2013
Balance as at July 1, 2011
Comprehensive income for the period
Net profit for the nine months period ended
March 31, 2012
Other comprehensive income
Surplus on revaluation of investments - net of tax
Transfer to general reserve
Total other comprehensive income
Total comprehensive income for the nine months
period ended March 31, 2012
Transactions with owners
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
Total transactions with owners
Balance as at March 31, 2012
Balance as at July 1, 2012
Issued,
subscribed
and paid up
share capital
315,909
-
-
-
-
-
-
47,386
47,386
363,295
363,295
Capital
reserveshare
premium
13,456
-
-
-
-
-
-
-
-
13,456
13,456
Revenue reserves
General
Unappropriated
reserve
profit
(Rupees in ‘000)
2,870,000
-
-
680,000
680,000
680,000
-
-
-
3,550,000
3,550,000
1,174,310)
1,147,848)
-
(680,000)
(680,000)
467,848)
(442,273)
(47,386)
(489,659)
1,152,499)
1,624,286)
Surplus on
revaluation
of
investments
-
-
-
-
-
-
-
-
-
-
3,189
Total
4,373,675)
1,147,848)
-
-
-
1,147,848)
(442,273)
-
(442,273)
5,079,250)
5,554,226)
Comprehensive income for the period
Net profit for the nine months period ended
March 31, 2013
Other comprehensive income
Surplus on revaluation of investments - net of tax
-
-
-
-
-
-
1,182,776)
-
Transfer to general reserve
-
- 1,040,000 (1,040,000)
Total other comprehensive income
-
- 1,040,000 (1,040,000)
Total comprehensive income for the nine months
period ended March 31, 2013
-
- 1,040,000 142,776)
Transactions with owners
Final dividend for the year ended June 30, 2012
Bonus shares issued at the rate of one share
for every five shares held
Total transactions with owners
Balance as at March 31, 2013
(Rs 14 per share)
72,659
72,659
435,954
-
-
-
13,456
-
-
-
4,590,000
-
(72,659)
(581,272)
1,185,790)
(508,613)
The annexed notes 1 to 19 form an integral part of this condensed interim financial statements.
-
16,868
-
16,868
16,868
-
-
-
20,057
1,182,776)
16,868)
-
16,868)
1,199,644)
(508,613)
-
(508,613)
6,245,257)
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
7

CONDENSED INTERIM CASH FLOW STATEMENT (Unaudited - Note 2)
For the Nine months period ended March 31, 2013
Note
Nine months
period ended
March 31,
2013
Nine months
period ended
March 31,
2012
(Rupees in ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 16 2,357,133 1,506,992
Staff retirement gratuity paid (20,467) (19,281)
Finance costs paid (11,181) (14,051)
Taxes paid (449,620) (505,859)
Long term loans (2,722) 4,707
Long term security deposits (2,840) (1,507)
Long term deposits 2,906 892
Net cash inflows from operating activities 1,873,209 971,893
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure (568,728) (403,414)
Purchase of Intangible assets (1,331) (2,188)
Sale proceeds on disposal of property,plant and equipment 11,625 7,744
Profit on bank deposits received 21,507 23,693
Purchase of short term investment (1,400,000) (100,000)
Profit on short term investment received 163 61
Sale proceeds on redemption of short term investment 725,000 -
Net cash outflows due to investing activities (1,211,764) (474,104)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (507,996) (441,748)
Net cash outflows due to financing activities (507,996) (441,748)
Net increase in cash and cash equivalents 153,449 56,041
Cash and cash equivalents at the beginning of the period 837,882 618,843
Cash and cash equivalents at the end of the period 991,331 674,884
The annexed notes 1 to 19 form an integral part of this condensed interim financial
statements.
8
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

NOTES TO AND FORMING PART OF THE
CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited - Note 2)
For the Quarter and Nine months period ended March 31, 2013
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 statements of the Company for the nine months
period ended March 31,2013 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.These interim financial statements should be read in
conjunction with the financial statements for the year ended June 30,2012 as they
provide an update of previously reported information.
2.2 This condensed interim financial statements comprises of the condensed interim
balance sheet as at March 31,2013 and the condensed interim profit and loss account,
condensed interim statement of changes in equity and the condensed interim cash
flow statement for the nine months period then ended.This condensed interim financial
statements also includes the condensed interim profit and loss account for the quarter
ended March 31,2013.
2.3 The comparative condensed balance sheet, presented in this condensed interim
financial statements, as at June 30,2012 has been extracted from the annual audited
financial statements of the Company for the year ended June 30,2012 whereas the
comparative condensed interim profit and loss account, condensed interim statement
of changes in equity and condensed interim cash flow statement for the nine months
period ended March 31,2012 are also included in this condensed interim financial
statements.
9

2.4 Standards, amendments to approved accounting standards and new
interpretations becoming effective during the period ended March 31, 2013 :
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 1,2012
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
statements.
2.5 Standards, amendments to approved accounting standards and interpretations
that are not yet effective and have not been early adopted by the Company :
There are other amendments to the standards and new interpretations that are
mandatory for accounting periods beginning on or after July 1, 2013 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 statements.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation
of this condensed interim financial statements are the same as those applied in the
preparation of the financial statements for the year ended June 30, 2012.
4. ACCOUNTING ESTIMATES , JUDGEMENTS AND FINANCIAL RISK MANAGEMENT
The preparation of this condensed interim financial statements in conformity with the
approved accounting standards requires management to make estimates, assumptions
and use judgments that affect the application of policies and reported amounts of
assets and liabilities and income and expenses. Estimates, assumptions and judgments
are continually evaluated and are based on the historical experience and other factors,
including reasonable expectations of future events. Revision to accounting estimates
are recognised prospectively commencing from the period of revision.
Judgements and estimates made by the management in the preparation of this
condensed interim financial statements are the same as those that were applied to
financial statements as at and for the year ended June 30, 2012.
5. PROPERTY, PLANT AND EQUIPMENT
Note
March 31,
2013
(Rupees in ‘000)
June 30,
2012
Operating fixed assets - net book value 5.1 & 5.2 2,747,098 2,711,483
Capital work-in-progress - at cost 5.4 394,993 151,642
3,142,091 2,863,125
10

5.1 Additions - operating fixed assets (at cost)
Nine months
period ended
March 31,
Nine months
period ended
March 31,
2013
2012
(Rupees in ‘000)
Leasehold Land - 18,214
Factory building on leasehold land 8,744 6,303
Plant and machinery 206,598 612,244
Electric fittings and installation 3,920 19,184
Furniture and fixtures 2,149 9,008
Tools and equipment 7,015 97,117
Vehicles 50,142 28,854
Computers and accessories 37,840 14,313
Office equipment 8,969 2,589
325,377 807,826
5.1.1 Additions include transfers from capital work-in-progress aggregating Rs 144.517
million (March 31,2012: Rs 619.288 million).
5.2 Disposals - operating fixed assets (at net book value)
Vehicles 6,145 4,765
Computers and accessories 68 108
6,213 4,873
5.3 Depreciation charge during the period 282,564 235,581
5.4 Additions - Capital Work-in-Progress (at cost)
Factory building on leasehold land 47,927 28,289
Plant and machinery 303,905 161,412
Electric fittings and installation 11,734 10,823
Tools and equipment 12,863 3,150
Furniture & fixture 733 9,181
Office equipment 10,706 2,021
387,868 214,876
5.5 Included in fixed assets are few items having cost of Rs. 22.332 million (June
30,2012: Rs. 22.332 million) held by related parties and Rs. 28.597 million (June
2012: Rs. 43.614 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.
5.6 During the period, the Company has identified certain items of property, plant and
equipment from which further economic benefits are no longer being derived.
11

Therefore, assets having cost of Rs 4.872 million (March 31, 2012: Rs 6.606
million) and net book value of Rs 0.985 million (March 31, 2012: Rs 1.355 million)
have been retired from active use and have been written off in these financial
statements. These items do not include any assets which have been fully depreciated
in prior periods.
6. INTANGIBLE ASSETS
Note
March 31,
2013
(Rupees in ‘000)
June 30,
2012
6.1 Intangibles - net book value 6.2 & 6.3 3,880 6,341
6.2 Additions - intangibles (at cost)
Nine months
period ended
March 31,
Nine months
period ended
March 31,
2013
2012
(Rupees in ‘000)
Computer Software 1,331 2,188
6.3 Amortisation charge during the period 3,792 11,584
7. STOCK IN TRADE
March 31,
2013
(Rupees in ‘000)
June 30,
2012
Raw and packing material 7.1 1,328,151 2,023,414
Work-in-process 166,749 185,395
Finished goods 654,590 643,862
2,149,490 2,852,671
7.1 Includes stock in transit aggregating to Rs 355.095 million (June 30,2012 : Rs
666.364 million).
8. LOANS AND ADVANCES
12
Considered good
Current portion of long term loans
- due from executives 1,162 2,309
- due from other employees 7,622 6,949
8,784 9,258
Advances
- to employees 8.1 8,630 9,411
- to contractors and suppliers 8.2 103,445 73,675
112,075 83,086
120,859 92,344

8.1 Advances to employees are provided to meet business expenses and are settled
as and when the expenses are incurred.
8.2 Included in advances to contractors and suppliers is an amount of Rs. 0.357 million
(June 30, 2012 Rs.1.956 million) given to related parties.
Note March 31, June 30,
2013
2012
9. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
(Rupees in ‘000)
Security deposits 9,647 4,885
Prepayments 54,047 15,313
63,694 20,198
10. OTHER RECEIVABLES
Receivable from related parties 10.1 15,626 6,426
Value added tax claimable 5,394 5,421
Special excise duty claimable 11,849 8,720
Claims receivable from an insurance company 516 369
33,385 20,936
10.1 Other receivables include the following amounts due from related parties:
Clover Pakistan Limited 39 639
Tetley Clover (Private) Limited 10,470 5,778
Rollins Industries (Private) Limited - 9
Employee gratuity fund 5,117 -
15,626 6,426
March 31, June 30,
2013
2012
No. of units
11. SHORT TERM INVESTMENTS - AVAILABLE FOR SALE
Balance as at July 1,2012 / 2011 2,531,959 -
Purchases 13,944,945 5,968,430
Bonus 356,303 52,190
Redemptions (7,205,279) (3,488,661)
Balance as at 9,627,928 2,531,959
March 31, June 30,
2013
2012
(Rupees in ‘000)
Carrying value 942,089 251,793
Market value 964,330 255,329
Unrealised gain 22,241 3,536
13

11.1 These represent investments made during the period in Lakson Money Market
Fund, a related party of the Company and UBL Liquidity Plus Fund.
12. SHARE CAPITAL
12.1 Authorised share capital
March 31, June 30,
2013 2012
(Number of shares)
March 31, June 30,
2013
2012
(Rupees in ‘000)
75,000,000 40,000,000 Ordinary shares of 750,000 400,000
Rs. 10 each
12.1.1 Pursuant to a special resolution passed at the annual general meeting held on
September 24,2012, the authorised share capital of the Company has increased
from Rs 400 million to Rs 750 million and the relevant clauses in Memorandum
and Articles of Association have been amended accordingly.
12.2 Issued, subscribed and paid-up share capital
March 31, June 30,
2013 2012
(Number of shares)
March 31, June 30,
2013
2012
(Rupees in ‘000)
5,882,353 5,882,353 Ordinary shares of 58,824 58,824
Rs. 10 each fully paid
in cash
37,713,037 30,447,139 Ordinary shares of 377,130 304,471
Rs. 10 each issued
as fully paid bonus
shares
43,595,390 36,329,492 435,954 363,295
12.2.1 These shares include 7,265,898 bonus shares of Rs 10 each (June 30,2012:
4,738,630 bonus shares of Rs 10 each) issued by the Company during the current
period.
14

13. TRADE AND OTHER PAYABLES
Note
March 31, June 30,
2013
2012
(Rupees in ‘000)
Trade creditors 13.1 457,945 554,043
Accrued liabilities 13.2 593,749 342,285
Bills payable 338,608 554,124
Amounts due to distributors 38,857 31,159
Sales tax payable 146,275 85,940
Royalty payable to an associated undertaking 59,844 78,500
Workers' profit participation fund 90,166 120,327
Workers' welfare fund 32,500 82,136
Retention money payable 4,980 5,447
Unclaimed dividend 3,314 2,698
Others 13.3 17,606 11,119
1,783,844 1,867,778
13.1 This includes Rs. 82.358 million (June 30,2012: Rs. 58.504 million) payable to
related parties.
13.2 This includes Rs. 2.188 million (June 30,2012: Rs. 1.280 million) payable to related
parties.
13.3 This includes Rs. 4.644 million (June 30,2012: Rs. 0.327 million) payable to related
parties.
14. CONTINGENCIES AND COMMITMENTS
14.1 Contingencies
14.1.1 As a result of a recovery suit of Rs 31.455 million along with 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 favor 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 favor 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 favor, 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 favor of KATI. Accordingly,
no provision has been made in the financial statements on this account.
15

14.1.2 Cases have been filed against the Company by some employees claiming
approximately Rs 2.587 million (June 30,2012: Rs 0.804 million) in aggregate.
Provision has not been made in these financial statements for the aforementioned
amounts as the management of the Company is of the opinion that matters shall
be decided in the Company's favor.
14.1.3 Post dated cheques have been issued to custom authorities as a security in respect
of duties and taxes amounting to Rs 234.976 million (June 30, 2012: Rs 360.031
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.
14.1.4 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.29.547 million (June 30,2012 - Rs. 29.547 million).
14.2 Commitments
14.2.1 Commitments in respect of capital expenditure amount to Rs. 99.060 million (June
30,2012:Rs. 222.852 million).
14.2.2 Outstanding letters of credit and acceptances amount to Rs. 735.375 million (June
30,2012:Rs. 500.560 million).
14.2.3 Outstanding duties leviable on clearing of stocks amount to Rs. 6.725 million (June
30,2012:Rs. 12.612 million).
15. EARNINGS PER SHARE
Quarter ended
March 31,
2013
Quarter ended
March 31,
2012
(Rupees in ’000)
Nine months
period ended
March 31,
2013
Nine months
period ended
March 31,
2012
Profit after taxation 436,187 394,614 1,182,776 1,147,848
(Number of shares)
Weighted average number of
ordinary shares outstanding
during the period (restated) 43,595,390 43,595,390 43,595,390 43,595,390
(Rupees)
Earnings per share (restated) 10.00 9.05 27.13 26.33
16
15.1 There were no dilutive potential ordinary shares outstanding as at March 31, 2013 and March
31, 2012.

Note
16. CASH GENERATED FROM OPERATIONS
Nine months
period ended
March 31,
2013
Nine months
period ended
March 31,
2012
(Rupees in ‘000)
Profit before taxation 1,692,917 1,763,152
Adjustment for non-cash charges and other items:
Depreciation and amortisation expense 286,356 247,165
Gain on disposal of property,plant and equipment (5,413) (2,873)
Provision for staff retirement gratuity 15,350 14,461
Property,plant and equipment written off 985 1,355
Provision for doubtful debts - 75
Profit on savings and term deposit accounts (21,760) (24,098)
Profit on short term investment (163) (61)
Gain on redemption of short term investment (14,949) -
Finance costs 11,166 13,944
Stocks written off 2,225 -
Net exchange loss 4,512 7,420
Working capital changes 16.1 385,907 (513,548)
2,357,133 1,506,992
16.1 Working capital changes
Decrease / (Increase) in current assets:
Stores and spares (5,185) (32,423)
Stock in trade 700,956 (479,871)
Trade debts (141,458) (220,801)
Loans and advances (28,515) (34,446)
Trade deposits and short term prepayments (43,496) (20,321)
Other receivables (7,332) 28,623
474,970 (759,239)
(Decrease) / Increase in current liabilities:
Trade and other payables (89,063) 245,691
385,907 (513,548)
17. RELATED PARTIES
17.1 Disclosure of transactions between the Company and related parties
The related parties comprise associated companies, staff retirement funds, directors
and key management personnel. The Company in the normal course of business
carries out transactions with various related parties. Significant balances and
transactions with related parties are as follows:
17

Nature of Transaction
Relationship
with the
Company
Nine months
period ended
March 31,
2013
(Rupees in ‘000)
Nine months
period ended
March 31,
2012
Sale of goods, services and reimbursement Associates /
of expenses Related Party 761,157 646,269
Purchase of goods and services received Associates /
and reimbursement of expenses Related Party 2,916,667 2,598,104
Purchase of short term investments Associates 1,200,000 100,000
Sale proceeds on redemption of short
term investments Associates 725,000 -
Profit on short term investments Associates 163 61
Rent, allied and other charges
Associates/
Related Party 19,830 17,611
Royalty charges Associates 59,844 58,579
Insurance claims received Associates 3,409 6,927
Insurance commission income Associates 5,083 6,915
Purchase of property,plant and equipment Associates 5,942 2,505
Sale of property,plant and equipment Associates - 1,200
Contribution to staff retirement benefits
Retirement
benefit fund 30,840 27,609
Key management personnel compensation Directors 28,599 24,964
Donation Associates 11,700 12,850
Dividend paid
Associates/
Related Party 447,330 404,887
March 31, June 30,
2013
2012
(Rupees in ‘000)
Receivable against sale of goods Associates 73,702 50,747
Loans and advances Associates Refer note 8
Other receivables from related parties Associates Refer note 10
Royalty payable to associated undertaking Associates Refer note 13
Due from gratuity fund
Retirement
benefit fund Refer note 10
Payable against purchase of goods Associates Refer note 13
18

18. ENTITY-WIDE INFORMATION
18.1 The Company constitutes of a single reportable segment, the principal classes of
which are Personal Care, Home Care and Others.
18.2 Information about products
The Company's principal classes of products accounted for the following percentages
of sales :
Nine months Nine months
period ended period ended
March 31, March 31,
2013
2012
----------------- % ------------------
Personal Care 21% 21%
Home Care 75% 75%
Others 4% 4%
100% 100%
18.3 Information about geographical areas
The Company does not hold non-current assets in any foreign country. Revenues
from external customers attributed to foreign countries in aggregate are not material.
18.4 Information about major customers
The Company does not have transactions with any external customer which amount
to 10 percent or more of the entity's revenues.
19. DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial statements were authorised for issue on April 25,
2013 by the Board of Directors of the Company.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
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