Annual Report July 2008

8/4/2019 Annual Report July 2008

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FINANCIAL SUMMARY

6,286

7,446

8,977

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2006 2007 2008

Gross salesRs in million

1,299

1,707

2,142

-

500

1,000

1,500

2,000

2,500

2006 2007 2008

Shareholders' equityRs in million

26.10

31.65

35.55

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2006 2007 2008

Earnings Per ShareRupees

Year Ended June 30, 2008

Year ended June 30

Rupees in million except EPS 2006 2007 % Change 2008 % Change

ross Sales 6,286 7,446 18.5% 8,977 20.6%perating Income 783 911 16.3% 1,041 14.3%

Net Profit After Tax 499 605 21.2% 679 12.2%Earnings per share (Rs.) 26.10 31.65 21.3% 35.55 12.3%

hareholders' Equity 1,299 1,707 31.4% 2,142 25.5%


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BALANCE SHEETas at June 30, 2008

Note 2008 200(Rupees in '000)

ASSETS

NON-CURRENT ASSETSProperty, plant and equipment 5 966,355 86Intangible assets 6 11,600 1Long term loans 7 18,551 1Long term security deposits 8 2,962

999,468 89CURRENT ASSETS

Stores and spares 9 14,085 1Stock in trade 10 1,006,364 77Trade de bts 11 177,983 14Loans and advance s 12 95,412 3Trade depo sits, short term prepayments and

other receivables 13 57,741 3Profit receivable from banks 14 2,291 Taxation 11,842 2Short term investments - available for sale 15 180,201 29Cash and bank balances 16 592,937 42

2,138,856 1,75TOTAL ASSETS 3,138,324 2,65

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised share capital20,000,000 ordinary shares of Rs 10 each 200,000 20

Issued, subscribed and paid-up share capital 17 191,098 15Reserves 18 1,950,245 1,55Surplus on revaluation of investments 15 201

2,141,544 1,7LIABILITIES

NON-CURRENT LIABILITIESLong term loan 19 3,125 Deferred taxation 20 154,900 11Long term deposits 21 4,465

162,490 12CURRENT LIABILITIES

Trade and other payables 22 786,145 62Accrued mark-up 23 700 Current maturity of long term loan 19 2,500 Short term borrow ings 24 44,945 18

834,290 81

TOTAL LIABILITIES 996,780 94CONTINGENCIES AND COMMITMENTS 25TOTAL EQUITY AND LIABILITIES 3,138,324 2,65

The annexed notes 1 to 42 form an integral part of these financial statements.

ZULFIQAR ALI LAKHANIChief Executive

TAS LEEMUDDIN A. BATLAYDirector


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STATEMENT OF CHANGES IN EQUITYfor the year ended J une 30, 2008

PROFIT AND LOSS ACCOUNTfor the year ended J une 30, 2008

Note 2008 2007(Rupee s in '000)

Turnover 8,976,538 7,445,820

Sales tax (1,249,907) (1,036,767)

Special excise duty (73,495) -Trade discounts (521,208) (474,629)

Net turnover 7,131,928 5,934,424

Cost of sales 26 (5,035,128) (4,054,746)

Gross profit 2,096,800 1,879,678

Selling and distribution costs 27 (981,933) (907,481)

Administrative expenses 28 (73,053) (60,407)

Other operating expenses 29 (74,839) (61,795)

Other operating income 30 73,909 61,411

Profit from operations 1,040,884 911,406

Finance costs 31 (19,875) (14,801)

Profit before taxation 1,021,009 896,605

Taxation 32 (341,716) (291,854)

Profit after taxation 679,293 604,751

Earnings per share (Rupees) - restated 33 35.55 31.65

The appropriations from p rofits are set out in the state ment of changes in equity.


Issued,subscribedand paid-upshare capital

Capitalreserve -

sharepremium

Generalreserve

Unappropriatedprofit

Surplus onrevaluation

ofinvestments

TRevenue reserves

Balance as at J uly 1, 2006 122,303 13,456 660,000 501,830 1,367 1,2

Pro fit fo r t he ye ar e nd ed J une 30 , 20 07 - - - 604 ,751 - 6

Finald ividend for the year ende d June 30, 2006(Rs 16 per share) - - - (195,685) - (1

Bonus shares issued at the rate of one sharefor every four shares held 30,576 - - (30,576) -

Transfer to general reserve - - 270,000 (270,000) -

Gain realised during the year ended June 30,2007 on disposal of investments - - - - (912)

Balance as at J une 30, 2007 152,879 13,456 930,000 610,320 455 1,7

Balance as at J uly 1, 2007 152,879 13,456 930,000 610,320 455 1,7

Pro fit fo r the ye ar e nd ed J une 30, 2008 - - - 679,293 - 6

Finald ividend for the year ende d June 30, 2007

(Rs 16 per share) - - - (244,605) - (2

Bonus shares issued at the rate of one sharefor every four shares held 38,219 - - (38,219) -

Transfer to general reserve - - 320,000 (320,000) -

Gain realised during the year ended June 30,2008 on disposal of investments - - - - (254)

Balanc e as at J une 30 , 20 08 191 ,098 13 ,456 1,25 0,00 0 6 86 ,789 2 01 2,1

The annexed notes 1 to 42 form an integralpart of these financialstatements.

(Rupees in '000)






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NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTSfor the year ended J une 30, 2008

1. STATUS AND NATURE OF BUSINESS AND A SIGNIFICANT EVENT DURING THE YEAR

1 .1 S t a t us a n d n a t ur e o f b u s in e s s

Colgate-Palmolive (Pakistan) Limited ("the c ompany") was initially incorpo rated in Pakistan on Dece mber 5, 1977 as a pub liccomp any with the name of National Deterge nts Limited. The name of the comp any was c hanged to Colgate-Palmolive (PLimited on March 28, 1990 when the co mpany ent ered into a Participation Agree ment w ith Colgate-Palmolive Compa nThe co mpany is listed on the Karachiand Lahore Stock Exchanges. The registered office o f the com pany is situated at Square, Building No. 2, Sa rwar Shaheed Road, Karachi, Pakistan.

The comp any is mainly engaged in the manufacture and s ale of detergents, pe rsonal care and other related pr

1 .2 S i gn i fi can t even t duri ng t he year

On December 28, 2007, the sto ck godown at the factory of the company situated in Kotriw as torched as a result of riotled to destruction of certain raw and packing materials and finished goods. Further, the packing department of the factory sover the stock godown was also affected by heat generated by the fire in the stock godown which damaged the eleccircuitry, central processing units and other electronic components of the machinery used in packing of detergents. The cohad lodged insurance claims in respect of loss of stock in trade, damage to property, plant and equipment and conseqloss of profit. The claims in respect of stock in trade and consequential loss of profit have been settled during the year. Fthe claim against damage to property, plant and e quipment has been acknow ledged by the insurance company in July 2a part payment has be en received against the claim before J une 30, 2008.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

These financialstate ments have be en prepared in accordance w ith the requirements of approve d accounting standards as apin Pakistan, the Companies Ordinance, 1984 (the Ordinance) and the directives issued by the Securities and Exchange Commof Pakistan (SECP). Approve d acc ounting stand ards comprise of s uch International Financial Report ing Standards (IFRSs) as under the provisions of the Ordinance. However, the requirements of the Ordinance or directives issued by the SECP hafollowed in case where their requirements are not consistent with the requirements of the approved accounting sta

Standards, interpretat ions and amendments to publ ished approved a ccount ing standards that are no t yet eff

The follow ing standard s, ame ndme nts and International Financial Reporting Interpret ations Committe e (IFRIC) interpre tatexisting standards have been published and are mandatory for accounting periods beginning on or after January 1, 2008:

IFRS 7, 'Financial instrume nts: Disclosures' (effect ive from J uly 1, 2008) introduces new disclosures relating to financial instrand does not have any impact on the classification and valuation of the financial instruments.

IAS 23 (Amendm ent) 'Borrowing cos ts' (effective from J anuary 1, 2009). It requires an entity to cap italise borrow ing costs attributable to the acquisition, construction or p roduction of a q ualifying ass et (one that takes substantial period o f timeready for use or sale) as part of the cost of that asset. On adoption of the above amendment, the option of immediately expethose b orrowing costs w ill be withdrawn.

IFRIC Interpre tation 14, 'IAS 19 - The limit on a defined be nefit ass et, minimum funding requirements and the ir interaction' (e

from January 1, 2008). IFRIC 14 provides guidance on assessing the limit in IAS 19 on the amount of surplus that can be recoas an asset . It also explains how the pe nsion asset or liability may be affecte d by a stat utory or co ntractual minimum requirements. The manageme nt is in the process of asse ssing the impact of its adoption on the company's financial state

Standards, amendments to published standards and new interpretations becoming effective in the year ended June 30but not relevant:

There are certain new standards, ame ndments and interpretations that we re mandatory for accounting period beginninafter July 1, 2007 but are considered not to be relevant or have any significant effect on the company's operations atherefore, not disclosed in thes e financial statements .

CASH FLOW STATEMENTfor the year ended J une 30, 2008

Note 2008 2007(Rupee s in '000)

CASH FLOWS FROM O PERATING ACTIVITIES

Ca sh g en er at ed f ro m o pe ra tio ns 3 4 9 19 ,7 96 8 47 ,5 83

Finance costs paid (22,681) (11,571)Taxes paid (286,877) (431,496)

Long term loans (5,966) (6,880)

Long term security deposits 559 (1,538)

Long term deposits 367 253

Net cash inflow from operating activities 605,198 396,351

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure (251,449) (213,993)

Sale proceeds on disposal of property, plant and equipment 44,233 2,092

Profit on savings account s 29,295 31,377

Profit on a term deposit account 85 -

Profit on short term investments received - 2,557

Sale proceeds on disposal of short term investments 465,654 243,819

Purchase of short term investments (330,000) (370,027)

Net cash outflow due to investing activities (42,182) (304,175)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term loan (2,500) (54,064)

Liabilities against assets subject to finance leases - (1,658)

Repayments of short term borrow ings (188,981) -

Short term borrow ings 44,945 188,981

Dividend paid (244,239) (195,377)

Net cash outflow due to financing activities (390,775) (62,118)

Net increase in cash and cash equivalents 172,241 30,058

Cash and cash equivalents at the beginning of the year 420,696 390,638

Cash and cash equivalents at the end of the year 16 592,937 420,696





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3 .3 In ta n gib le a s s et s

An intangible asset is an identifiable non-monetary asset without physical substance.

Intangible asset s are recognised when it is probable that the expe cted future e conomic benefits will flow to the entity cost of the asset can be me asured reliably.

Intangible as sets are stat ed at cost less accumulated am ortisation and accumulated impairment losse s, if any. Amortischarged over the es timated useful life of the asse t as spe cified in note 6.2 on a systemat ic basis applying the straimethod.

Useful lives of intangible operating assets are reviewed, at each balance s heet date and adjusted if the impact of amortisignificant.

3 .4 Im pa ir me nt

The company assesses at each balance sheet date whether there is any indication that property, plant and equipment and intassets may be impaired. If such indication exists, the carrying amounts o f such asse ts are reviewe d to as sess whether trecorded in excess of their recoverable amounts. Where carrying values e xceed reco verable amounts, assets are writteto their recoverable amounts and the differences are recognised in income currently.

3 .5 S to re s an d s pa re s

Consistent w ith prior years, stores and sp ares are valued at lower o f cost us ing the moving average method and estimarealisable value. Items in transit are valued at cos t as accumulated upto the balance sheet d ate. Provision for obsolete iany, is base d on their condition as at the balance sheet d ate depe nding upon the manageme nt's judgement.

Consistent with prior years, loose tools are charged to income as and when purchased as their inventory is generally not sign

3 .6 S to ck in tr ad e

Stock in trade is valued at the lower of cost and estimated net realisable value. Cost is de termined as follows:

Stages o f s t ock in t rade Bas is o f va lua t ion

Raw and packing material - Moving average costRaw and packing mate rial in bonded

w are house and in transit - Cos t accumulate d upto the balance s he et dateW ork in proce ss - Cost of direct materials and appropriate portion of production ovFinished goods - Cost of direct materials and appropriate portion of production ovTrading goods - First in first out basis

Net realisable value is determined on the basis of es timated selling price of the product in the o rdinary course of b usinestimated costs of completion and the estimated costs necess ary to be incurred for its sale.

3 .7 Tr a d e d e bt s a n d o t h er r e ce iv a ble s

Trade de bts and other receivables are carried at original invoice amount less an es timate for doubtful debts based on theof outstanding debts. Accordingly, a provision is made against those debts having no movement during the current financi

and which are also considered as d oubtful by the management. Debts, considered irrecoverable, are written off, as anidentified.

3.8 Ta xa tio n

Current

Provision for current taxation is bas ed o n taxable income for the year at the current rates of taxation after taking into atax credits and tax rebates available, if any, and tax paid on presumptive basis or minimum tax at the rate of 0.5 perturnove r, whichever is higher.

3. SIGNIFICANT ACCOUNTING POLICIES

3 .1 A cc o un t in g Co n v en t io n

These financialstate ments have b een prep ared under the historicalcos t convention except for reco gnition of certain staff retirement

benefit at prese nt value as referred to in note 3.13 and ce rtain financial instruments that have be en accounted for on the basis

of their fair values as referred to in note 3.17.

3 .2 P ro p e rt y , p la n t a n d e qu ip m e n t

3 .2 .1 O w ne d

These are state d at cost less accumulated depreciation and accumulated impairment losse s, if any, except for leasehold land and

capital work in progress which are stated at cost.

Consistent with prior years, assets having cost exceeding the minimum threshold as determined by the management are capitalised.

All other assets are charged to income in the year w hen acquired.

Depreciation is charged to income applying the reducing balance me thod and by applying rates (as stated in note 5.1.2) on the

opening book value of the ass ets. Depreciation on add itions is charged from the month in which the ass et is put to use and on

disposal upto the month of disposal at the rates s tated in note 5.1.2.

No depreciation is charged if the asset's residual value exceeds its carrying amount.

Residual values and the useful lives are reviewed at each balance sheet date and adjusted if expectations differ significantly from

previous estimates. The manageme nt es timates that the financial impact o f changes in the residual values and the useful lives

during the year ended June 30, 2008 is immaterial.

Residual values are determined by the management as the amount it expe cts it would receive currently for an item o f property,

plant and equipment if it was already of the age and in the condition expected at the end of its useful life based on the prevailing

market prices of similar assets already at the end of their useful lives.

Useful lives are determined by the manageme nt based on the expe cted usage of assets , physical wear and tear, technical and

commercial obsolescence, legal and similar limits on the use of the assets and other similar factors.

Normal repairs and maintenance are charged to income as and when incurred. Major renewals and improvements are capitalised

and asse ts s o replaced, if any, are retired.

Profit or loss on disposal of assets is recognised in income currently.

3 .2 .2 A sse ts sub j ec t t o f inance leases

The company accounts for property, plant and equipment held under finance leases by recording the asset and the related liability.

These amounts are determined on the basis of discounted value of m inimum lease payments o r fair value whichever is lower.

Financial charges are allocated to t he accounting period in a manner so as to provide a constant pe riodic rate of charge on the

outs tanding liability. Depreciation is charged t o income applying the reducing balance metho d at rates s tate d in note 5.1.2 below.

3 .2 .3 A sse ts he l d under opera t ing l eases

Lease rentals payable on assets held under operating leases are recognised in income currently.

3 .2 .4 Capi t a l w ork i n p rogress

Consistent with prior years, all expenditures connected with specific assets incurred during installation and construction period

are carried under capital work in progress. These are transferred to specific assets as and when assets are available for use.


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Deferred

Consistent w ith prior years:

- Deferred tax is recognised using the balance shee t liability metho d on all tem porary differences be twe en the carrying amounts

of the as sets and liabilities and their tax bases after adjusting for the impact of the te mporary differences arising on account

of the tax liability under the Final Tax Regime (FTR).

- Deferred tax liabilities are reco gnised for all major taxable tem porary differences .

- Deferred tax asse ts are recognised for all major deductible te mporary differences to the exte nt that it is probable that taxable

profit will be available against w hich the deduct ible te mporary difference s can be utilised.

- The carrying amount of the deferred tax asse t is reviewe d at each balance sheet date and is recognised only to the extent

that it is prob able that future taxa ble profits will be available against w hich the as set s may be ut ilised. Deferred tax as set s are

reduced to the exte nt that it is no longer probable that the related tax be nefit w ill be realised.

- Unrecognised de ferred income tax asse ts are reasse ssed at each balance sheet d ate and are recognised to the extent that it

becomes probable that future taxable profits w ill allow deferred tax ass et to be recovered .

- Deferred tax ass ets and liabilities are measured at the tax rate that are expecte d to apply to the year w hen the asse t is utilised

or the liabiltiy is settled, based on the tax rates that have been enacted or substantially enacted at the balance sheet date.

3 .9 In ve st me nt s

The management determines appropriate classification of its investments in accordance with the requirements of IAS 39: 'Financial

Instruments: Recognition and Measurement' (IAS 39) at the time of purchase of investment and reevaluates this classification ona regular basis. The existing investment portfolio of the company has been categorised as 'available for sale'.

'Available for sale' financial assets are those financial assets that are not (a) loans and receivables originated by the company, (b)

held to maturity investments, or (c) financial assets held for trading.

Investments classified as 'available for sale' are initially recognised at cost and are subsequently remeasured to fair value. Surplus

/ deficit arising due to movement in fair values of 'available for sale' investments is transferred to equity.

Investments are derecognised when the rights to receive cash flows from the investments have e xpired or have bee n transferred

and the company has transferred substantially all risks and rewards of ow nership.

Impairment of investments is recognised when there is a permanent diminution in the value of the investments.

3 .10 Cash and cash equ iva len t s

Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of the cash flow s tatement, cash and cash

equivalents comprise of cash in hand, deposits held with banks and running finances under mark-up arrangement.

3 .1 1 Bo r ro w in g co s t s

Consistent w ith prior years, borrowing costs are recognised as an expense in the pe riod in which these are incurred.

3 .1 2 P ro v is io n s

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable

that an outflow of re sources embodying economic benefits will be required to s ettle the o bligation and a reliable estimate can

be made of the amount of the o bligation.

3 .13 St aff re t irem ent benef it s

Defined benefit plan

The com pany operates a defined benefit plan i.e. an approved funded gratuity scheme for all its pe rmanent employees

to attainment of retirement age and minimum se rvice of prescribed period. Contributions are made t o the fund on the b

actuarial recommendations. Actuarial valuation is carried out using the projected unit credit method.

Actuarial gains / losses exceeding 10 percent of the higher of the present value of the defined benefit obligation and fair v

plan assets, at the be ginning of the year, are amortised over average future service of the employees.

Defined contribution plan

The company operates an approved funded provident fund scheme for all its permanent employees. Equal monthly contri

are made, both by the company and its employees, to the fund at the rate of 9 pe r cent of the bas ic salaries of e mploye

Compensated absences

The liability in respect of compensated absences of employees is accounted for in the period in which the absences a

3 .14 Revenue recogni t ion

Sales are recognised on despatch of goods to customers.

Profit on bank balances are recognised on a time proportion basis on the principal amount outstanding and at the applicab

Cumulative gain or loss previously recognised in equity on revaluation of fair values of 'available for sale' financial ass

recognised in income at the time of their derecognition.

Insurance commission income is recognised as and when received.

3 .15 Fore ign currency t rans la t ion

Transactions in foreign currencies are translated in Pakistan rupe es (functional and pres entation currency) at the exchan

prevailing on the date of transaction. Monetary ass ets and liabilities in foreign currencies are translated into Pakistan ru

the rates of exchange approximating those prevalent at the balance sheet date. Exchange differences are charged to i

currently.

3 .16 D iv idend and o t her appropr ia t ions

Dividend is reco gnised as a liability in the pe riod in which it is de clared. Appropriations of pro fit are reflected in the state m

changes in equity in the pe riod in which such appropriations are app roved .

3 .17 Financ ia l ins t rum ent s

All financial assets and liabilities are recognised at the time when the company becomes a party to the contractual provi

the instruments. All financial assets and liabilities are initially measured at cost, which is the fair value of the consideration

and rece ived respe ctively. Consistent w ith prior years, thes e financial assets and liabilities are s ubse quently meas ured at fa

amortised cost or cos t, as the case may be. The particular measureme nt methods adopted are disclosed in the individu

stateme nts associated with each item.


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Consistent with prior years, financial assets are derecognised w hen the rights to rece ive cas h flows from the ass ets have expired

or have been transferred and the company has transferred substantially all risks and rewards of ownership. Financial liabilities are

derecognised when they are extinguished i.e. when the obligations are discharged, cancelled or expired.

Any gain or loss on the recognition and derecognition of the financial assets and liabilities is included in the income for the year

in which it arises .

3.18 Off-set t ing of financial assets a nd financial l iabi li t ies

A financial asset and a financial liability is set off and the net amount is reported in the financial statements if the company has a

legally enforceable right to set off the transaction and also intends either to se ttle on a net basis or to realise the ass et and s ettle

the liability s imultaneo usly.

3 .19 Transac t ions w i t h re la t ed par t ies

The company e nters into transactions with related parties for sale or purchase of goods and services on an arm's length basis.

3.20 Cont ingent l iabi li t ies

Consistent w ith prior years contingent liability is disclosed w hen:

- there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or

non occurrence of o ne or m ore uncertain future e vents not wholly within the control of the company; or

- there is present obligation that arises from past events but it is not p robable that an outflow of resources embodying economic

bene fits will be required to s ettle the obligation or the am ount of the o bligation cannot b e me asure d with sufficient reliability.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The p reparation of financial statem ents in conformity w ith approved acco unting standards requires the us e o f certain critical

accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting

policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant

to the financial statements are as follows:

a) Assumptions and estimates used in determining the residual values and useful lives of property, plant and equipment

(note 5);

b) Assumptions and est imates use d in writing down items of sto ck in trade to their net realisable value (note 10);

c) Assumptions and estimates used in calculating the provision for doubtful debts (note 11);

d) Assumptions and estimates used in the classification of investments (note 15);

e) Assumptions and estimates used in the recognition of deferred taxation (note 20); and

f) Assumptions and estimates used in accounting for defined benefit plan (note 39).

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation

of future events that are believed to be reasonable under the circumstances.

Note 2008 2007(Rupee s in '000)

5. PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 5.1 961,098 739,628

Capital w ork in progress 5.2 5,257 125,209

966,355 864,837

5 .1 O p er a ti ng fi xe d a s s e ts

5.1.1 The following is a statement of operating fixed assets :

At July 1, 2006Co st 1 0,3 55 1 49 ,0 67 63 9, 38 3 50 ,5 55 2 25 15 ,2 86 5 0,3 67 87 ,9 34 2, 57 1 2 5,8 75 1 5, 57 4 1Ac cu mu la te d d e pr ec ia tio n - (5 7, 05 4) (2 31 ,1 53 ) (1 4, 72 0) (1 24 ) (9 ,2 01 ) (2 5, 82 1) (2 7, 78 0) (1 ,0 04 ) (1 6, 92 1) (1 0, 29 8)

Ne t b o ok v alu e 1 0, 35 5 9 2, 01 3 4 08 ,2 30 3 5, 83 5 1 01 6 ,0 85 2 4, 54 6 60 ,1 54 1 ,5 67 8 ,9 54 5 ,2 76

Year ended J une 30, 2007

Opening net book value 10,355 92,013 408,230 35,835 101 6,085 24,546 60,154 1,567 8,954 5,276

Add it ions - 3,445 11,014 1,705 - 1 ,062 5,598 22,586 - 2 ,645 7 36

Transfers from capitalw ork inprogress during the year - 47,713 68,957 6,789 - 71 2,306 - - - 322

Tra ns fe rs fro m fin an ce le as e - - - - - - - 2, 57 1 (2 ,5 71 ) - - De pre cia tio n o n t ra ns fe rs - - - - - - - (1 ,2 00 ) 1 ,2 00 - -

Disposals

Co s t - - - - - - - (1 ,4 31 ) - (2 90 ) (1 04 ) Depreciation - - - - - - - 687 - 154 75 Net book value - - - - - - - (744) - (136) (29)

Write offsCos t - (518) - - - (262) - - - (576) (171) Depreciation - 326 - - - 183 - - - 500 135

Net book value - (192) - - - (79) - - - (76) (36)

De pre cia tio n c ha rg e fo r t he y ea r - (1 1,0 57 ) (4 5,2 64 ) (4 ,0 81 ) (1 0) (9 98 ) (4 ,3 32 ) (1 7,1 79 ) (1 96 ) (3 ,1 72 ) (8 56 ) Closing net book value 10,355 131,922 442,937 40,248 91 6,141 28,118 66,188 - 8,215 5,413

At June 30, 2007

Co st 1 0,3 55 1 99 ,70 7 7 19,35 4 59 ,04 9 2 25 16 ,15 7 58 ,2 71 1 11,66 0 - 27 ,6 54 1 6,357 1Ac cu mu la te d d e pr ec ia tio n - (6 7, 78 5) (2 76 ,4 17 ) (1 8, 80 1) (1 34 ) (1 0, 01 6) (3 0, 15 3) (4 5, 47 2) - (1 9, 43 9) (1 0, 94 4)Ne t b o ok v alu e 1 0, 35 5 1 31 ,9 22 44 2, 93 7 40 ,2 48 9 1 6 ,1 41 2 8, 11 8 6 6, 18 8 - 8 ,2 15 5 , 41 3

At July 1, 2007Co st 1 0,3 55 1 99 ,70 7 7 19,35 4 59 ,04 9 2 25 16 ,15 7 58 ,2 71 1 11,66 0 - 27 ,6 54 1 6,357 1,Ac cu mu la te d d e pr ec ia tio n - (6 7, 78 5) (2 76 ,4 17 ) (1 8, 80 1) (1 34 ) (1 0, 01 6) (3 0, 15 3) (4 5, 47 2) - (1 9, 43 9) (1 0, 94 4)Ne t b o ok v alu e 1 0, 35 5 1 31 ,9 22 4 42 ,9 37 4 0 ,2 48 9 1 6 ,1 41 2 8 ,1 18 66 ,1 88 - 8 ,2 15 5 ,4 13

Year ended J une 30, 2008Opening net book value 10,355 131,922 442,937 40,248 91 6,141 28,118 66,188 - 8,215 5,413

Additions - 11,041 113,578 5,517 - 1,119 25,493 58,504 - 11,143 3,498

Transfers from capitalw ork inprogress during the year - 12,921 124,172 3,371 - 7 568 - - - 469

Disposals

Co st - - (3 6,3 50 ) (9 ,5 16 ) - (2 ,4 10 ) (9 ,0 02 ) (8 ,5 81 ) - (2 ,7 88 ) (9 72 )Dep re ciat io n - - 10,083 2,751 - 726 4,348 4,413 - 1,892 546 Net book value - - (26,267) (6,765) - (1,684) (4,654) (4,168) - (896) (426)

Write offs

Cos t - - (7) - - (15) (400) - - (1,324) (395)Depreciation - - 2 - - 9 241 - - 1,186 298

Net book value - - (5) - - (6) (159) - - (138) (97)

De pre cia tio n c ha rg e fo r t he y ea r - (1 4,8 16 ) (5 2,2 01 ) (3 ,8 46 ) (9 ) (8 35 ) (5 ,5 90 ) (2 2,4 33 ) - (3 ,9 58 ) (9 78 )Closing net book value 10,355 141,068 602,214 38,525 82 4,742 43,776 98,091 - 14,366 7,879

At June 30, 2008Co st 1 0,3 55 2 23 ,66 9 9 20,74 7 58 ,42 1 2 25 14 ,85 8 74 ,9 30 1 61,58 3 - 34 ,6 85 1 8,957 1,Ac cu mu la te d d e pr ec ia tio n - (8 2, 60 1) (3 18 ,5 33 ) (1 9, 89 6) (1 43 ) (1 0, 11 6) (3 1, 15 4) (6 3, 49 2) - (2 0, 31 9) (1 1, 07 8)Ne t b o ok v alu e 1 0, 35 5 1 41 ,0 68 6 02 ,2 14 3 8 ,5 25 8 2 4 ,7 42 4 3 ,7 76 98 ,0 91 - 1 4, 36 6 7 ,8 79

(Rupees in '000)

Leaseholdland

Factorybuilding onleasehold

land

Plantand

machinery

Electricfittings

andinstallation

Gasinstallation

Furnitureand

fixtures

Toolsand

equipmentowned

Heldunder

financelease

Computersand

accessories

Vehicles

Officeequipment


26/41

Note 2008 200(Rupee s in '000)

5.1.7 Depreciation charge for the year has been allocated as follows :

Cost of sales 26.1 80,921 6

S ellin g a nd d is tr ib ut io n c os ts 2 7 2 0,4 97 1

Ad minis trative e xp ens es 28 3,248 104,666 8

5.2 Capital work in progress

The following is a stat eme nt of capital work in progres s:

Factory Plant and Electric

build in g o n m achinery fit t ings and Ot her as se ts T

leaseho ld land installation

(Rupees in '000)

Balance as at J uly 1, 2006 37,825 43,681 3,970 689 8

Capital expenditure incurred

during the year 21,888 134,256 5,980 3,078 16

Transfer to operating

fixed assets (47,713) (68,957) (6,789) (2,699) (12

Balance as at J une 30, 2007 12,000 108,980 3,161 1,068 12

Balance as at J uly 1, 2007 12,000 108,980 3,161 1,068 12

Capital expenditure incurred

during the year 1,995 15,371 210 3,980 2

Transfer to operating

fixed assets (12,921) (124,172) (3,371) (1,044) (14

Balance as at J une 30, 2008 1,074 179 - 4,004

5.1.2 Depreciation on operating fixed ass ets is charged at the following rates:

Annual rate of depreciation (%)Factory building on leasehold land 10Plant and machinery 10Electric fittings and installation 10Gas installation 10Furniture and fixtures 15Tools and equipment 15Vehicles 20 & 25Computers and accessories 33Office equipment 15

5.1.3 Included in fixed as set s are few items having cost o f Rs 29.907 million (2007: Rs 30.116 million) held by related parties a nd of Rs26.878 million (2007: Rs 13.831 million) held by third parties for manufacturing certain produ cts o f the co mpany. These fixed a sse tsare free of lien and the co mpany has full rights of reposs ession of these assets .

5.1.4 During the year, the company has identified certain items of property, plant and equipment from which further economic benefitsare no longer being derived. Therefore, assets having cost of Rs 2.141 million (2007: Rs 1.527 million) and net book value of Rs1.737 million (2007: Rs 0.383 million) have been retired from active use and have been written off in these financial statements.

5.1.5 No impairment relating to operating fixed asse ts has bee n recognised in the current year.

5.1.6 Dispo sals of prope rty, plant and equipment having a net book value excee ding Rs 50,000, either individually or in aggregate , duringthe year are as follows:

Pa r t ic u la r s M o d e of Co s t Ac c u m u lt e d N e t bo o k S a le P r o c e e d s / Ga in / (lo s s ) Pa r t ic u la r sd is p o s a l d e p r e c ia t io n v a lu e Re c e iv a b le fr o m o f p u r c h a s e rs

I n s u r a n c eC o m p a n y *

( R u p e e s i n ' 0 0 0 )

Vehicles Bid 268 199 69 167 98 SamiuddinHouse No. C-14, University Road,Sector 38A, Karachi

Bid 774 474 300 470 170 Muham mad Taim ur DarBanglow No. 282, D'croz Road,Garden East, Karachi.

Bid 590 281 309 325 16 Amjad SuhailHouse No. 692/17, AncholiSociety,F.B. Area, Karachi.

Bid 88 6 335 55 1 57 5 2 4 Ca pt ain J am ee l, Ho us e No . 35 7,Sharfabad, Karachi.

Insurance claim 2,833 1,191 1,642 1,990 348 Century Insurance Company Limited,Lakson Square, Building No. 3,Sarwar Shaheed Road, Karachi.

Insurance claim 1,250 291 959 1,140 181 Century Insurance Company Limited,Lakson Square, Building No. 3,Sarwar Shaheed Road, Karachi.

6,601 2,771 3,830 4,667 837Computers and

accessories Insurance claim 96 13 83 86 3 Century Insurance Company Limited,Lakson Square, Building No. 3,Sarwar Shaheed Road, Karachi.

Insurance claim 83 13 70 85 15 Century Insurance Company Limited,Lakson Square, Building No. 3,

179 26 153 171 18 Sarwar Shaheed Road, Karachi.

Office equipment Tr ad e- in 2 25 1 60 6 5 1 5 (5 0) Un it ed Bu sin es s S ys te m s Pr iv at e Lim it e d

43-L/4, Block 6 , P.E.C.H.S., Karachi.Fixed assets destroyeddue to fire (note 1.2) Insurance claim 58,958 18,990 39,968 39,968 - Century Insurance Company Limited,

Lakson Square, Building No. 3,Sarwar Shaheed Road, Karachi.

OthersItems having net bookvalue of less thanRs 50,000 e ac h Various 3,656 2,812 844 4,380 3,536 Vario us

2008 69,619 24,759 44,860 44,233 4,341*4,968

2007 1,825 916 909 2,092 1,183


27/41

Note Goodwill

(Rupees in '000)

6. INTANGIBLEASSETS

At July 1, 2006

Cost 43,500

Accumulated amortisation (20,300)Net book value 23,200

Year ended June 30, 2007

Opening net book value 23,200

Additions -

Disposals -

23,200

Amortisation for the year 6.2 & 27 (5,800)

Closing net book value 17,400

At June 30, 2007

Cost 43,500

Accumulated amortisation (26,100)

Net book value 17,400

At July 1, 2007

Cost 43,500



Year ended June 30, 2008

Opening net book value 17,400

Additions -

Disposals -

17,400

Amortisation for the year 6.2 & 27 (5,800)

Closing net book value 11,600

At June 30, 2008

Cost 43,500



6.1 These rep resent amounts paid on acquisition of the brand "Sparkle"from Transpak Corporation Limited.

6.2 Cosistent with prior years, goodwill is being amortised ove r the useful life of 10 years.

6.3 The intangible assets include a trade mark costing Rs 1.500 million in respect of the brand "Sparkle"purchased on January 4, 2001.The trade mark was fully amortised during the year ended June 30, 2007. However, it is still in active use.

Note 2008 200

(Rupee s in '000)

7 . LO NG TERM LO AN S

Considered good

- due from executives 7.1, 7.2 & 7.3 972

- due from other employees 7.2 25,787 126,759 2

Recoverable within one year 12 (8,208)

18,551 1

7.1 Reconciliation of carrying amount of loans to executives:

Opening balance as at July 1 1,573

Disbursements 352

Repayments (953)

Closing balance as at June 30 972

7.2 These loans are interest free and have been given to executives and other employees of the company for purchase o

and vehicles and for personal use in accordance w ith their terms o f employment. These loans are to be repaid over a pe

five years in equal monthly installments. Vehicles purchased under this s cheme are registered in the name o f the compa

the title is trans ferred w hen the loan is fully repaid. The remaining loans are adjust able against final set tlement o f staff pr

fund.

7.3 The maximum aggregate amount of loans due from executives at the end of any month during the year was Rs 1.741

(2007: Rs 2.924 million).

7.4 Long term loans are being carried at cost because the effect of carrying these balances at amortised cost would not ha

material.

8. LONG TERM SECURITYDEPOSITS

Long term security deposits 2,962

8.1 This includes Term Depos it Rece ipt (TDR) amounting to Rs 1.7 million (2007: Rs 1.7 million) issued b y a banking company. T

has been issued to provide security to a banking company for issue of guarantee against a lien on the TDR. The TDR carrie

at the rate of 5% (2007: 5%) per annum and s hall mature on August 30, 2008 at which time the management intends to

the TDR.

9 . S TO RES A ND S PARES

Stores 8,068

Spares 6,017

26.1.3 14,085


28/41

Note 2008 2007

(Rupee s in '000)

1 0 . S TO CK IN TR ADE

Raw mate rials

- in hand 414,218 328,158

- in bonded w arehouse 60,558 40,718- in transit 240,374 94,571

26.1.1 715,150 463,447

Packing mat erials

- in hand 68,674 38,574

- in transit 12,240 8,950

- with third parties 1,023 2,620

26.1.2 81,937 50,144

Work in process 26.1 9,588 5,756

Finished goods

- in hand 10.1 135,524 188,732

- in transit 19,357 22,186

154,881 210,918

Trading goods

- in hand 44,808 41,581

- in transit - 6,005

44,808 47,586

1,006,364 777,851

10.1 This includes sto cks carried at fair value less co st to s ell amount ing to Rs 5.605 million (2007: Rs 9.096 million).

1 1 . TR AD E D EB TS

Considered good

- due from related parties 11.1 & 11.2 5,583 5,697

- others 172,400 138,566

177,983 144,263

Considered doubtful

- others 6,568 5,955

184,551 150,218

Less: Provision for doubtful debts 11.3 6,568 5,955

177,983 144,263

11.1 Trade debts include the following amounts due from related parties:

Merit Packaging Limited 11 1

Century Paper and Board Mills 33 -Rollins Industries (Private) Limited 5,539 5,696

5,583 5,697

11.2 The maximum aggregate amount of receivable due from related parties at the end of any month during the year was Rs 44.324

million (2007: Rs 11.202 million).

Note 2008 200

(Rupee s in '000)

11.3 The movement in the provision for doubtful debts for the year is as follows:

Balance at the beginning of the year 5,955

Provision for the year 29 1,338

Bad debt written off (725) Balance at the end of the year 6,568

12 . LO AN S A ND AD VA NCES

Considered good

Current portion of long term loans

- due from executives 964

- due from other employees 7,244

7 8,208

Advances

- to employees 12.1 7,682

- to contractors and suppliers 12.2 40,909

- against letter of credit 38,613

95,412

12.1 Advances to employees are provided to meet business expenses and are settled as and when the expenses are in

12.2 Advances include the following amounts due from related parties:

Rollins Industries (Private) Limited 2,417

Colgate-Palmolive (Pakistan) Limited Employees

Contributory Provident Fund Trust 861

Century Insurance Company Limited 356

3,634

13. TRADE DEPOSITS, SHORT TERM PREPAYMENTS AND OTHER RECEIVABLES

Trade depo sits and short term prepayments

Security deposits 4,976

Prepayments 14,012

18,988

Other receivables

Receivable from related parties 13.1 & 13.2 38,224

Custom duty refundable 245

Claims receivable from an insurance company 284

Others - 38,753

57,741


29/41

17. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL

2008 2007 Note 2008 2

Number of shares (Rupees in '000)

5,882,353 5,882,353 Ordinary shares of Rs 10 58,824 5each fully paid in cash

13 ,2 27,43 3 9 ,4 05,47 6 Ord inary s hare s o f Rs 10 e ac h 17 .1 1 32,274 9

issued as fully paid bonus shares

19,109,786 15,287,829 191,098 15

17.1 These s hares include 3,821,957 bonus shares o f Rs 10 each (2007: 3,057,566 bonus shares of Rs 10 each) issued by the co

during the year.

1 8. RES ERVES

Capital reserve

- Share premium reserve 13,456 1

Revenue reserve

- General reserve 1,250,000 93

- Unappropriated profit 686,789 61

1,950,245 1,55

19 . LO N G TERM LO AN

Secured - From ABN Amro Bank N.V 19.1 5,625

Less: Current maturity show n under current liabilities 2,500

3,125

19.1 The company has o btained a loan from ABN Amro Bank N.V of Rs 10 m illion to finance the expansion of existing pl

machinery. This facility is sec ured against pari passu charge over fixed as sets including immovable property o f the co

Markup is charged at the rate of three month's KIBOR plus 110 bps per annum. The loan is repayable in sixteen equal qu

installments of Rs 0.625 million each, w hich commence d from Octo ber 2006.

20. DEFERRED TAXATION

Credit / (debit) balances arising in respect of

timing differences relating to:

Accelerated tax depreciation allow ance 159,998 1

Provision for compensated absences (2,799)

Provision for doubtful debts (2,299)

154,900 1

21 . LO N G TERM DEPOSITS

Security de posits obtained from:- Distributors 3,960

- Transporters 500

- Others 5

4,465

21.1 These de posits are interest free and are not refundable during the subsistence of relationship with the company.

Note 2008 2007

(Rupee s in '000)

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

Century Insurance Company Limited 13.3 34,683 6,600

Clover Pakistan Limited 1,090 761

Colgate-Palmolive Philippine 6 6

Tetley Clover (Private) Limited 2,445 935

38,224 8,302

13.2 The maximum aggregate amount receivable from related parties at the end o f any month during the year was Rs 161.395 million

(2007: Rs 9.315 million).

13.3 This includes receivable from Century Insurance Company Limited amounting to Rs 4.968 million (2007: nil) which repres ents

balance amount receivable against the insurance claim for fixed assets fully destroyed on December 28, 2007 and Rs 27.867 million

(2007: nil) against repairs to fixed assets damaged on that date as fully explained in note 1.2.

14. PROFIT RECEIVABLE FROM BANKS

Profit on savings accounts 1,869 119

Profit on a term deposit account 422 -

2,291 119

15. SHORT TERM INVESTMENTS - avai lable for sale

2008 2007 2008 2007

Number of units (Rupees in '000)

United Money Market Fund - 454,240 - 50,000United Growth & Income Fund - 448,258 - 50,000

NAFA Cash Fund 7,431,077 7,234,273 80,000 80,000

MCB Dynamic Cash Fund 141,070 338,636 15,000 35,000

IGI Income Fund 97,466 245,990 10,000 25,000

J S Income Fund 240,616 5 3,802 25,000 30,000

(formerly UTP Income Fund)

Atlas Income Fund 38,224 27,532 20,000 15,000

KASB Liquid Fund 96,974 90,432 10,000 10,000

AKD Income Fund 194,455 - 10,000 -

BMA Chund rig ar Ro ad Sa ving s Fund 9 27,59 2 - 10,000 -

180,000 295,000

Surplus on revaluation of investments 201 455

180,201 295,455

16. CASH AND BANK BALANCES

With banks on:

- Current accounts 55,092 30,558

- Savings accounts 16.1 359,427 357,511

- Term deposit account 16.1 100,000 -514,519 388,069

Cheques in hand 77,730 32,059

Cash in hand 688 568

592,937 420,696

16.1 The rates of profit on these savings and term deposit account range betwee n 0.75% to 13.60% and 14% res pectively (2007:

0.75% to 11.80%) per annum.


30/41

Note 2008 2007

(Rupee s in '000)

22. TRADE AND OTHER PAYABLES

Trade creditors 22.1 404,324 297,260

Accrued liabilities 77,973 102,629

Bills payable 117,779 99,098

Amounts due to distributors 19,174 7,105

Special excise duty payable 4,574 -

Sales tax payable 51,250 26,819

Royalty payable to an associated undertaking 30,316 21,253

Workers' profits participation fund 22.3 54,648 47,737

Workers' welfare fund 17,265 13,300

Retention money payable 42 1,625

Unclaimed dividend 1,647 1,281

Others 22.2 7,153 5,356

786,145 623,463

22.1 These balances include the following amounts d ue to related parties:

Hasanali Karabhai Foundation 339 257

Princeton Travels (Private) Limited 39 26

Merit Packaging Limited 1,483 -

Century Insurance Company Limited 3,357 374

Rollins Industries (Private) Limited - 16,597

Century Publication (Private) Limited 2,250 750

SIZA (Private) Limited 18 -

Cyber Inernet Services (Private) Limited 353 354

Century Paper & Board Mills Limited 16,318 12,218

24,157 30,576

22.2 These balances include the following amounts due to related parties:

Colgate-Palmolive Pakistan Limited Employees

Contributory Provident Fund Trust - 533

Reliance Chemicals (Private) Limited 19 -

Colgate-Palmolive Thailand 1,029 920

1,048 1,453

22.3 Workers' profits participation fund

Balance at the beginning of the year 47,737 41,284

Allocation for the year 29 54,648 47,737

102,385 89,021

Less: Payments during the year 47,737 41,284Balance at the end of the year 54,648 47,737

23 . ACCRUED MA RK-UP

Accrued markup on:

- Long term loan 110 154

- Short term borrowings 590 3,352

700 3,506

Note 2008 200

(Rupee s in '000)

24. SHORT TERM BORROWINGS

Secured - From banks

- Running finance facilities 24.1 & 24.2 -

- Import credit facilities 24.1 & 24.3 44,945 1

44,945 1

24.1 The company has arranged short-term borrowing facilities from various banks o n mark-up basis to t he extent o f Rs 837

(2007: Rs 71 2 million), which can be interchangea bly utilised as run ning finance facilities or import credit facilities. These

had expired during the year and we re renew ed subseq uently. The renew ed facilities are available for various p eriods e

betwe en July 30, 2008 to March 31, 2009. The arrangements are s ecured by a joint hypothecation of stocks , stores and

trade debts, other current assets and second charge on moveable assets of the company.

24.2 The mark-up on short-term running finance facilities ranges betwe en 10.92% to 13.81% (2007: 10.03% to 11.63%) per

24.3 The import cred it facility is priced at LIBORplus 2% pe r annum (2007: LIBORp lus spread ranging betwe en 0.7% to 1% per

24.4 The facilities for ope ning letters of credit and guarantee as at J une 30, 2008 aggregate Rs 2,468.700 million and Rs 30

respe ctively (2007: Rs 1,672 million and Rs 30 million res pectively) of which the amo unts re maining unutilised at the ye ar en

Rs 2,092.745 million and Rs 15.400 million (2007: Rs 1,446.811 million and Rs 15.400 million) respectively.

25. CONTINGENCIES AND COMMITMENTS

2 5 .1 Co n t in g e nc ie s

25.1.1 As a result of recovery s uit of Rs 31.455 million filed by the Octroi Contracto r against the Governme nt of Sindh, Union

Bulari and Kotri Assoc iation of Trade and Industries (KATI) in the Civil Court, the Hono rable Senior Jud ge issue d a de cre

7.336 million in favor of Octroi Contractor. KATIha s filed an a ppea l in the High Court of Sindh whe reas t he Octroi Contrac

also filed an appeal requesting to enhance the amount of decre e. Subsequently, the case has been transferred to the Ad

District Jud ge Kotri by the High Court of Sindh. The District Ju dge allowe d the ap peal in favour of KATI and rema nded t

to Senior Civil Jud ge Kotri for adjudication which is still awa ited. If the appe al is dismisse d then the c ompa ny, being a m

of KATI, would be req uired to pay its share as determined by the Court out of the tot al decree amount. The managemen

company, based on the ad vice of its legal counsel handling the s ubject matter, is confident that the ap peal will be dec

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

25.1.2 The company has re ceived a notice from the Hono urable High Court of Sindh conce rning an appe al filed by the Commiss

Income Tax against a decision made in favour of the company by the Income Tax Appellate Tribunal (ITAT) for the asse

year 1991-92. The case is pending for regular hearing in the Honourable High Court of Sindh and the legal counsel of the co

is of the opinion that the company has a good arguable case.

25.1.3 Cases have bee n filed against the com pany by so me em ployees claiming approximately Rs 0.629 million (2007: Rs 0.939

in aggregate. Provision has not been made in these financial statements for the aboveme ntioned amounts as the manag

of the company, based on the advice of its legal counsel handling the subject cases, is of the opinion that matters shall be din the company's favour.

25.1.4 Post dated cheque s have been issued to cus tom authorities as a security in respect of duties and taxes amounting Rs

million (2007: Rs 6.929 million) payable at the time of exbonding of imported goods. In the event the goods are not cleare

custom w arehouse w ithin the pres cribed time pe riod, cheques issued as security shall be encashable.

25.1.5 Contingent liabilities in respe ct of indemnities given to t he financial institutions for guarantee s issued by them in the normal

of bus iness aggrega te Rs 14.600 million (2007: Rs 1 4.600 million).


31/41

2 5.2 Co m m it m en t s

25.2.1 Commitments in res pect of capital expenditure am ount to Rs 12.175 million (2007: Rs 13.155 million).

25.2.2 Outsta nding lette rs of credit and acce ptance s amou nt to Rs 276.878 million (2007: Rs 129.204 million).

25.2.3 Outsta nding duties leviable on clearing of sto cks am ount to Rs 18.864 million (2007: Rs 1.042 million).

25.2.4 Commitments for rentals under operating lease agreements in respect of vehicles are as under:

Note 2008 2007

(Rupee s in '000)

Not later than one year - 433

Balance at the end of the year - 433

2 6. CO S T O F S ALES

O pening s t ock of f in ished goods (including t rading goods and by-products ) 258 ,504 167 ,209

Cost of goods manufactured 26.1 4,118,167 3,388,991

Purchases of trading goods 882,330 757,050

5,259,001 4,313,250

Le s s: Co st o f fin is he d g oo ds a nd w o rk in p ro ce s s d am ag ed d ue t o fire 2 6.1 .4 2 4,1 84 -

Less: Closing stock of finished goods (including trading good

and by-products) 10 199,689 258,504

5,035,128 4,054,746

2 6 .1 Co s t o f g o o d s m a n u fa c tu r ed

Opening stock of work in process 5,756 3,428

Raw materials consumed 26.1.1 & 26.2 2,895,709 2,362,310

Packing materials consumed 26.1.2 & 26.2 798,764 653,961

Stores and spares consumed 26.1.3 & 26.2 19,359 18,906

Salaries, w ages and other benefits 156,045 132,753

Gratuity 39.8 5,048 5,115

Provident fund 3,968 3,641

Pow er and fuel 101,777 89,543

Repairs and maintenance 15,373 12,282

Rent, rates and taxes 1,340 1,285

Insurance 10,010 8,608

Laboratory expenses 2,461 1,849

Cartage 10,782 9,214

Depreciation 5.1.7 80,921 69,085

Other manufacturing expenses 21,162 23,127

4,128,475 3,395,107

Less: Recovery from related parties 720 360

4,127,755 3,394,747

Le ss : Clo sing s to ck o f w ork in p ro ce ss 10 9,588 5,756

4,118,167 3,388,991

Note 2008 200

(Rupee s in '000)

26.1.1 Raw materials consumed

Opening stock 463,447 3

Purchases 3,153,224 2,4

3,616,671 2,8

Less: Cost of raw materials damaged due to fire 26.1.4 5,812

Less: Closing stock 10 715,150 4

2,895,709 2,3

26.1.2 Packing materials consumed

Opening stock 50,144

Purchases 847,939 6

898,083 7

Less: Cost of packing materials damaged due to fire 26.1.4 17,382

Less: Closing stock 10 81,937

798,764 6

26 .1 .3 S t ores and s pares consum ed

Opening stock 16,742

Purchases 16,702

33,444

Less: Closing stock 9 14,085

19,359

26.1.4 This represents insurance claim received from Century Insurance Company Limited against loss of stock due to fire at

premises on December 28, 2007 as fully explained in note 1.2.

26.2 Cost of sales includes amounts w ritten off during the year in respect o f the following:

- Raw mate rials 810

- Packing materials 2,898

- Finished goods 1,752

- Stores and spares 18


32/41

Note 2008 2007

(Rupee s in '000)

27. SELLING AND DISTRIBUTION COSTS


Gratuity 39.8 1,885 1,910


Travelling and conveyance 20,577 20,907

Repairs and maintenance 3,228 832

Vehicle running expenses 46,195 38,343

Advertising and sales promotion 483,611 468,858

Royalty on sale of licensed products 31,912 22,372

Postage, telephone and internet charges 6,237 5,001


Printing and stationery 1,992 1,414

Subscription and membership 342 570

Legal and professional 731 206

Freight 243,709 232,38 6

Electricity 2,312 1,694


Security service charges 1,779 1,642

Depreciation 5.1.7 20,497 15,560

Amortisation 6 5,800 5,800

Other expenses 190 12

988,625 917,984

Less: Recovery from related parties 6,692 10,503

981,933 907,481

28. ADMINISTRATIVE EXPENSES


Gratuity 39.8 1,938 1,964


Travelling and conveyance 2,125 1,363

Repairs and maintenance 410 330

Vehicle running expenses 3,209 2,371

Postage, telephone and internet charges 1,830 1,717


Printing and stationery 1,749 1,256

Subscription and membership 1,666 3,284

Legal and professional 2,671 1,069

Electricity 1,421 1,155


Security service charges 63 45

Depreciation 5.1.7 3,248 2,500

Others 126 145

73,795 61,318

Less: Recovery from related parties 742 911

73,053 60,407

Note 2008 200

(Rupee s in '000)

29. OTHER OPERATING EXPENSES

Workers' profits participation fund 22.3 54,648 4

Workers' w elfare fund

- current year 17,265 1

- prior year 41

17,306 1

Auditors' remuneration 29.1 721

Property, plant and equipment w ritten off 405

Donations 29.2 391

Advances to employees written off 30

Provision for doubtful debts 11.3 1,338

74,839 6

29.1 Auditors' remuneration

Audit fee 240

Fee for half yearly review and other certifications 295

Out of pocket expenses 186

721

29.2 Donations include the following in which a director is interested:

N a m e o f d ir e ct o r In t e re s t N a m e a n d a d d re s s o f d o n ee

in donee

Mr. Iqbal AliLakhani (See note below) Special Olympics Pakistan,

205, Sunset Tower, Sunset Boulevard,

DHA, Phase-II, Karachi 240

Note: Spous e of Mr. Iqbal AliLakhani is the Program Chief Executive of the done e organisation.

30. OTHER OPERATING INCOME

Insurance commission 3,455

Profit on savings accounts 31,045

Profit on a term deposit account 507

Profit on short term investments -

Profit on disposal of short term investments 20,654

Gain on disposal of property, plant and equipment 5.1.6 4,341

Sale of scrap 639

Insurance claim against consequential loss of profit 55,737

Exchange (loss) / gain (44,350)

Sales tax refund 524

Profit on sale of material 247

Others 1,110

73,909


33/41

2008 2007

(Rupee s in '000)

3 1. FIN AN CE CO S TS

Markup on:

- Long term loan 751 4,455

- Liabilities against assets subject to finance leases - 48

- Short term borrowings 14,408 6,302

Guarantee commission 258 232

Bank commission and other charges 4,458 3,764

19,875 14,801

3 2. TAXAT IO N

Current

- for the year 300,600 283,000

- for prior years 1,458 (6,856)

Deferred 39,658 15,710

341,716 291,854

32.1 Reconciliation betwe en the average effective tax rate and the applicable tax rate.

2008 2007

Percentage

Applicable tax rate 35.00 35.00

Tax effect of expense s that are not allowable

in d et erm ining t axa ble inc om e (0 .71) (0 .45)

Effect of income assessed under presumptive tax regime (0.28) (0.99)

Tax effect of income tax provision relating to prior year 0.14 (0.77)

Tax impact arising due to origination of temporary differences (0.68) (0.24)

33.47 32.55

33 . EA RN IN GS PER SHA RE

2008 2007

(Rupee s in '000)

Profit after taxation 679,293 604,751

(Number of shares)

Weighted average number of ordinary shares outstanding

during the year - restated 19,109,786 19,109,786

(Rupees)

Earnings per share - restated 35.55 31.65

33.1 A diluted earnings per share has not been presented as the company does not have any convertible instruments as at June 30,2007 and 2008 which would have any effect on the earnings per share, if the option to convert is exercised.

Note 2008 200

(Rupee s in '000)

34. CASH GENERATED FROM OPERATIONS

Profit before taxation 1,021,009 8

Adjustment for non-cash charges and other items:

Depreciation and amortisation expense 110,466

Gain on sale of property, plant and equipment (4,341)

Provision for doubtful debts 1,338

Advances to employees written off 30

Profit on savings accounts (31,045) (2

Profit on a term deposit account (507)

Profit on short term investments -

Profit on disposal of short term investments (20,654)

Finance costs 19,875

Exchange loss / (gain) 44,350

Property, plant and equipment w ritten off 405

Working capital changes 34.1 (221,130) (11

919,796 84

34 .1 Working cap it a l changes

(Increase) / decreas e in current assets :

Stores and spares 2,657

Stock in trade (228,513) (16

Trade debts (35,058) (4

Loans and advances (56,079)

Trade dep osits, short term prepayments and

other receivables (22,103) (1

(339,096) (22

Increase in current liabilities:

Trade and other payables 117,966 1

(221,130) (11

35 . PRO PO SED D IV ID EN D

The Board of Directors at the mee ting held on August 19, 2008 have proposed for the year ende d June 30, 2008 cash d

of Rs 10 per share (2007: Rs 16 per share), amounting to Rs 191.098 million (2007: 244.606 million), bonus issue of 4.777 m

shares (2007: 3.822 million shares) at the rate of one share for every four shares held (2007: one share for every four share

and transfer to general reserve of Rs 440 million (2007: Rs 320 million) subject to the approval of members at the annual

meeting to be held on Septe mber 18, 2008.


34/41

36. RELATED PARTYDISCLOSURES

36.1 Disclosure of transactions betwee n 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:

Nature o f t ransact ion Note Rela t ionship 2008 2007

w it h the com pany (Rupees in '000)

Sale of goods, services provided and

reimbursement of expenses

Century Paper & Boards Mills Limited Associate 266 115

Clover Pakistan Limited Associate 10,436 10,090

Lakson Tobacco Company Limited 36.6 Associate - 1,105

Merit Packaging Limited Associate 51 40

Rollins Industries (Private) Limited 36.3 Related party 294,127 254,116

Tetley Clover (Private) Limited Associate 2,048 1,657

306,928 267,123

Purchase of goods, services received and

reimbursement of expenses

Century Insurance Company Limited Associate 34,270 26,668

Century Paper & Board Mills Limited Associate 118,278 89,132

Century Publication (Private) Limited Associate 8,661 11,069

Clover Pakistan Limited Associate 1,532 993

Colgate-Palmolive China Subsidiary of CP-USA 87,937 68,122

Colgate-Palmolive Vietnam Subsidiary of CP-USA 10,651 11,524

Colgate-Palmolive Company USA Joint venture company 41,936 24,330

Colgate-Palmolive Hong Kong Subsidiary of CP-USA 791 125

Colgate-Palmolive Thailand Subsidiary of CP-USA 6,886 8,574

Colgate-Palmolive Turkey Subsidiary of CP-USA 160 -

Cyb er Int erne t Se rvic es (Priv at e) Lim it ed As so cia te 4,792 5,254

Lakson Tobacco Company Limited 36.6 Associate - 124

Lakson Business Solution (Formerly C.R.I.S.S.) Associate 119 -

Merit Packaging Limited Associate 7,752 404

Accuracy Surgicals (Private) Limited Associate - 45

Princeton Travels (Private) Limited Associate 6,092 6,312

Rollins Industries (Private) Limited 36.3 Related party 1,054,975 930,816

SIZA (Private) Limited Associate 19 9

SIZA Foods (Private) Limited Associate 100 100

Tetley Clover (Private) Limited Associate - 6

1,384,951 1,183,607

Rent , al lied and other charges

Century Paper & Board Mills Limited Associate 181 294

Hasanali Karabhai Foundation As sociate 8,219 6,960

SIZA Services (Private) Limited Associate 402 344

Reliance Chemicals (Private) Limited Associate 1,723 1,875

10,525 9,473

Nature o f t ransact ion Note Rela t ionship 2008

w it h the com pany (Rupees in '000)

Royalty charges

Colgate-Palmolive Company USA Joint venture company 31,912 2

Sale of property, plant and equipmentClover Pakistan Limited Associate 83

Tetley Clover (Private) Limited Associate 35

Rollins Industries (Private) Limited 36.3 Related party -

118

Contribut ion to staff ret i rement benefi ts

Colgate-Palmolive (Pakistan) Limited Employees

Contributory Provident Fund Trust Employees fund 9,271

Colgate-Palmolive (Pakistan) Limited

Em plo ye es Gra tuit y Fund Em plo ye es fund 8,871

18,142 1

Donat ions

Special Olympics Pakistan 36.4 240

Compensat ion paid to key management

personnel

Short-term employe e bene fits including Key manage ment

compensated absences personnel 26,662 2

Post employment benefits --do-- 2,946 29,608 2

Insurance claims received

Century Insurance Company Limited Associate 146,625

Insurance commission income

Century Insurance Company Limited Associate 3,455

Purchase of property, plant and equ ipment

Cyber Internet Services (Private) Limited Associate -

Lakson Business Solutions Limited 36.5 Associate 133

Clover Pakistan Limited Associate 1,055

SIZA (Private) Limited Associate 1,080

SIZA Foods (Private) Limited Associate 567

2,835

Dividend paid

Colgate-Palmolive Company USA Joint venture company 73,382 5

Century Insurance Company Limited Associate 90

Premier Fashions (Private) Limited Associate 18,751 SIZA (Private) Limited Associate 19,190 1

SIZA Services (Private) Limited Associate 50,839 1

SIZA Commodities (Private) Limited Associate 11,938

174,190 9


35/41

36.2 The related party status of outstanding balances as at June 30, 2008 are included in trade debts (note 11), other receivables (note

13), and trade and other payables (note 22) resp ectively.

36.3 Rollins Industries (Private) Limited is a third party whos e manufacturing process is depend ent on the comp any.

36.4 Spouse of Mr. Iqbal AliLakhaniis Program Chief Executive o f Special Olympics Pakistan.

36.5 The former name of Lakson Business Solutions Limited was Cyber Rapid Integrate d Software Solutions (Private) Limited.

36.6 Transactions with Lakson Tobacco Company Limited (LTCL) are disclosed for the pe riod from J uly 1, 2006 to March 8, 2007 as

the company ce ased to be a related party thereafter due to change in shareholding of LTCL.

37. REMUNERATION OF CHIEF EXECUTIVE, DIRECTOR AND EXECUTIVES

37.1 The aggregate amount charged in these financial stateme nts for remuneration, including certain benefits to the chief executive,

the director and executives of the company, are as follows:

Chief Executive Director Executives2008 2007 2008 2007 2008 2007

(Rupees in '000)

Manage rial remune ratio n 5,382 5,382 1,708 1,557 33,526 25,537Bonus / commission 1,827 5,591 287 261 6,063 4,628Reversalof excess accrualof bonus in previous year - (1,212) - - - -Gratuity - - 414 310 1,868 498

Provident fund - - 154 141 2 ,686 2,054

Housing 1,614 1,614 768 676 15,114 10,058Utilities 355 359 - 12 - 9 81Motor vehicles 533 503 179 164 3,380 2,489Others - - 231 222 5,405 3,745

9,711 12,237 3 ,741 3,343 68,042 49,990

Number of persons 1 1 1 1 36 28

37.2 Chief executive, a working director and the executives o f the company are also provided with company maintained cars.

38. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

38.1 In t e res t ra t e ri sk exposure

Interest / mark-up rate risk arises from the poss ibility that c hanges in interest / mark-up rates will affect the value o f f

instruments. In respect of income earning financial assets and interest / mark-up bearing financial liabilities, the followin

provides information about the exposure of the company to interest / mark-up rate risk at the balance sheet date ba

contract ual re-pricing or maturity dates , whichever is earlier.

The information relating to company's exposure to interest rate risk based on maturity dates is as fo

In te re s t / m ark-up be ar ing Non-in te re s t / m ark-up bea ring Tot al T

Maturity Maturity Sub-total Maturity Maturity Sub-total 2008 2w ithin one after one within one after one

year year year year

(Rupees in '000)

Financial assetsLong term loans - - - 8,208 18,551 26,759 26,759 Lo ng t erm s ec urit y d ep os it s - 1 ,7 00 1 ,7 00 - 1 ,2 62 1 ,2 62 2 ,9 62 Trade debts - - - 184,551 - 184,551 184,551 1

Trade deposits, short termprepayments and other receivables - - - 43,484 - 43,484 43,484

Pro fit re ce ivab le fro m b an ks - - - 2,29 1 - 2,29 1 2 ,291 Sho rt t erm inve st me nt s - - - 18 0,20 1 - 18 0,20 1 180 ,201 2Ca sh a nd bank bala nc es 459 ,427 - 459 ,427 133 ,510 - 133 ,510 592, 937 4

2008 459,427 1,700 461,127 552,245 19,813 572,058 1,033,185 9

2007 357,511 1,700 359,211 539,781 16,006 555,787 914,998

FinancialliabilitiesLong term loan 2,500 3,125 5,625 - - - 5,625 Long term deposits - - - - 4,465 4,465 4,465

Trad e and o the r p ayab le s - - - 6 39,23 4 - 6 39,23 4 639 ,234 5Accrued mark-up - - - 700 - 700 700 Sho rt t erm b orro win gs 4 4,94 5 - 4 4,94 5 - - - 44 ,945 1

2008 47,445 3,125 50,570 639,934 4,465 644,399 694,969 7

2007 191,481 5,625 197,106 532,008 4,098 536,106 733,212

Off-balance sheet i tems

Letters of credit 384 13

Indemnity bonds and guarantees 14,600 1

The effective interest/mark-up rates as at June 30 for financial instruments are as follows:

2008 200

Percentage

Long term security deposits 5.00

Balances with banks in:- savings accounts 0.75 to 13.60 0.75 to

- term deposit account 14.00 7.25 to

Long term loan 11.36

Short term bo rrowings

- running finance facilities 10.92 to 13.81 10.03 to

- import credit facilities 4.70 6.06


36/41

38.2 Credit risk and concentrat ion of credit risk

Credit risk represents the accounting loss that w ould be recog nised at the re porting date if counter parties fail completely to

perform as contracted. Out of the total financial assets of Rs 1,033.185 million (2007: Rs 914.998 million), the financial assets that

are s ubject to credit risk amount ed t o Rs 1,032.497 million (2007: Rs 914.430 million). The co mpany be lieves that it is not e xpos ed

to major concentration of credit risk. To manage exposure to credit risk, the company applies credit limits to its customers.

38 .3 Fore ign exchange r isk m anagem ent

Foreign currency risk arises mainly where receivable and payables exist due to transactions entered into foreign currencies. The

company is expose d to foreign currency risk on ce rtain transactions with group companies that are ente red in a currency other

than Pakistan Rupees. The company uses forward foreign exchange contracts to hedge its foreign currency risk, when considered

appropriate.

38 .4 Li qui d it y r isk m anagem ent

The company a pplies prudent risk manageme nt policies by maintaining sufficient cas h and marke table se curities and the availability

of funding through an adeq uate amount of co mmitted c redit facilities. Compa ny's tre asury aims a t maintaining flexibility in funding

by keeping committed credit lines available.

38.5 Fair value of financial inst ruments

Fair value is an amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in

an arm's length transaction. Consequently, differences may arise between the carrying value and the fair value estimates.

As at J une 30, 2008 the ne t fair value of all financial ass ets and financial liabilities are e stimated to ap proximate t heir carrying values.

38 .6 Capi t a l r isk m anagem ent

The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order

to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return

capital to shareholders or issue new shares or se ll assets to reduce de bt.

Consistent with others in the industry, the company manages its capital risk by monitoring its debt levels and liquid assets and

keep ing in view future investme nt requirements a nd expe ctation of the shareholders . Debt is calculated as total borrowings ('long

term loan' and 'short te rm borrowings' as s hown in the balance shee t). Total capital comprises shareholders' equity as s hown in

the balance sheet under 'share capital and reserves'.

The salient information relating to capital risk management of the company as of June 30, 2008 and 2007 were as follows:

Note 2008 2007

(Rupee s in '000)

Total borrow ings 19 & 24 50,570 197,106

Less: Cash and cash equivalents 16 592,937 420,696

Excess of liquid assets over total borrow ings 542,367 223,590

Total equity 2,141,544 1,707,110

As at June 30, 2008 and 2007, the company had an e xcess of liquid assets o ver total borrowings, hence, its expo sure to c apital

risk is minimal.

3 9. GRATUIT Y

39.1 The disclosures made in notes 39.2 to 39.13 are based on the information included in the actuarial valuation report as

30, 2008.

39.2 The actuarial valuation of gratuity plan was carried out as of J une 30, 2008. The projected unit credit method, using the fo

significant financial assumptions, has been used for the actuarial valuation:

2008 200

Percentage

- Discount rate - per annum compound 12.00

- Expected rate of increase in salaries - per annum 11.00

- Expected rate of return on plan assets - per annum 10.00

39.3 Mortality rate

The rates assumed were based on the EFU 61-66 mortality table.

39.4 The amounts recognised in the balance sheet are as follows:

Note 2008 200

(Rupee s in '000)

Present value of defined benefit obligation 39.5 72,505

Fair value of plan assets 39.6 (49,149) (4

Deficit 23,356

Unrecognised net actuarial gains (12,335)

Unrecognised past service cost (11,021) (1Payable to the gratuity fund -

39.5 Movement in defined benefit obligation

Present value of defined benefit

obligation as at July 1, 2007 / 2006 62,378 5

Current service cost 5,039

Interest cost 6,238

Actuarial losses 3,442

Benefits paid (4,592)

Fair value as at June 30 72,505

39.6 Movement in fair value of plan assets

Fair value as at July 1, 2007 / 2006 42,781

Expected return on plan assets 4,278

Actuarial gains (2,189)

Company contributions 8,871

Benefits paid (4,592)Fair value as at June 30 49,149 4


37/41

Note 2008 2007

(Rupee s in '000)

39.7 Movement in net liability in the balance sheet is as follows:

Opening balance of net liability - -

Charge for the year 39.8 8,871 8,989

Contributions made during the year to the fund (8,871) (8,989)

Closing balance of net liability - -

39.8 Charge for the year has been allocated as under:

Cost of sales 26.1 5,048 5,115

Se lling a nd d is trib ut io n c os ts 27 1,885 1 ,9 10

Ad minis trative e xp ens es 28 1,938 1,9 64

8,871 8,989

39.9 The following amounts have been charged to income in respect of the gratuity plan:

Current service cost 5,039 5,098

Interest cost 6,238 4,528

Past service cost - non vested 1,836 1,836

Actuarial loss charge 36 129

Expected return on plan assets (4,278) (2,602)

8,871 8,989

Actual return on plan assets 2,089 6,145

39.10 Amounts for the current period and previous four annual periods of the fair value of plan assets , present value of the de fined

benefit obligation and the deficit arising thereon are as follows:

2008 2007 2006 2005 2004

(Rupees in '000)

As at June 30

Present value of de fined

benefit obligation 72,505 62,378 50,312 41,978 37,210

Fair value of plan assets (49,149) (42,781) (28,910) (17,685) (16,868)

Deficit 23,356 19,597 21,402 24,293 20,342

Experience adjustment:

(Loss) / gain on plan assets

(as percentage of plan assets) (4.46) 8.28 4.51 (3.64) (4.78)

Loss / (gain) on o bligations

(a s a p erc ent ag e o f o blig at io n) 4.7 5 5.9 4 1 .04 12 .26 (0 .65)

39.11 Plan assets comprise of the following:

2008 2007

(Rupees in '000) Percentage (Rupees in '000) Percen

Shares 4,937 10 5,430

Debt 34,956 71 22,562

Cash 7,134 15 11,023

Others 2,122 4 3,766

49,149 10 0 42,781

39.12 The expecte d return on plan assets is based on the market expectations and depends upon the ass et portfolio of the co

at the beginning of the period, for returns over the entire life of related obligation.

39.13 Expected contribution to post employment benefit plan for the year ending June 30, 2009 is Rs 11.159 million.

40. PLANT CAPACITYAND ACTUAL PRODUCTION

2008 200

(Quantities in tons)

Capacity 105,500 10

Production 96,796

The underutilisation of capacity was due to market constraints.

41. CORRESPONDING FIGURES

41.1 Note Reclass ifica t ion from Note Reclass ifica t ion to (Rupees in '000)com ponent com ponent

31 Markup on short term borrow ings 31 Markup on long term loan 1,046

34 Profit on bank deposits 34 Profit on savings accounts (22,222)

Profit on a term depo sit account (7,063)

34.1 Trade and other payables 34 Exchange gain (1,107)

41.2 The following reclassifications has been made in the cash flow for bette r presentation:

Reclass ifica t ion from com ponent Reclass ifica t ion to com ponent (Rupees in '

Long term loans Loans and advances 2,264

Long term deposits (net) Long term security deposits (1,538

Long term deposits 253

42. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue on August 19, 2008 by the Board of Directors o f the comp any.




38/41

PATTERN OF HOLDING OF SHARESHeld by t he Shareholders as at J une 30, 2008

Incorporation Number K-5010 OF 1997-78

CUIN Registration NO.005832

No of S harehold ings Tota l

shareho lders From To Share he ld

282 1 100 shares 8,973

180 101 500 Shares 46,458

60 501 1,000 Shares 44,535

43 1,001 5,000 Shares 96,174

8 5,001 10,000 Shares 57,010

1 10,001 15,000 Shares 12,280

3 15,001 20,000 Shares 56,540

1 20,001 25,000 Shares 23,720

1 60,001 65,000 Shares 64,316

1 65,001 70,000 Shares 65,670

1 205,001 210,000 Shares 205,433

1 940,001 945,000 Shares 942,061

1 1,495,001 1,500,000 Shares 1,499,193

1 1,765,001 1,770,000 Shares 1,765,614

1 3,090,001 3,095,000 Shares 3,092,072

1 5,395,001 5,400,000 Shares 5,396,805

1 5,730,001 5,735,000 shares 5,732,932

587 Total 19,109,786

Cat egories o f shareho lders shares held Percentage

Directors, Chief Execut ive Officer, and their spouse and minor children 275,776 1.44

Associated Companies, undertakings and related parties 11,760,715 61.54

NIT and ICP 309 0.002

Banks, Developm ent Financial Institutions,

Non Banking Financial Institutions 19,015 0.10

Insurance Companies - -

Modarabas and Mutual Funds 3,281 0.02

Sha re ho ld ers ho ld ing 1 0% 14,22 1,809 7 4.42

General Public 1,317,758 6.90

ZULFIQAR ALI LAKHANI

Chief Executive

Note: Some of the shareholders are reflected in more than one category

a) ASSOCIATED COMPANIES SHARES

1. Siza (Private) Limited 1,499

2. Siza Services (Private) Limited 5,396

3. Siza Commodities (Private) Limited 1,7654. Premier Fashions (Private) Limited 3,092

5. Century Insurance Company Limited 7

b ) NIT AND ICP

1. National Bank of Pakistan, Trustee Deptt.

2. Investment Corporation of Pakistan

c) DIRECTORS, CEO AND THEIR SPOUSE AND MINOR CHILDREN

1. Mr. Iqbal Ali Lakhani Director 2

2. Mr. Zulfiqar Ali Lakhani Director/Chief Executive

3. Mr. Amin Mohammed Lakhani Director 2

4. Mr. Tasleemuddin Ahmed Batlay Director

5. Mr. A. Aziz H. Ebrahim Director 64

6. Mr. Peter Justin Skala Nominee of

Colgate-Palmolive

Company, USA

7. Mr. Peter John Graylin Nominee of

Colgate-Palmolive

Company, USA

8. Mrs.Ronak Iqbal Lakhani W/o Iqbal Ali Lakhani 205

9. Mrs. Fatima Lakhani W/o Zulfiqar Ali Lakhani

10. Mrs.Saira Amin Lakhani W/o Amin Mohammed Lakhani

d ) EXECU TIV ES 17

e) PUBLIC SECTOR COMPANIES AND CORPORATIONS

f) BANKS, DEVELOPMENT FINANCE INSTITUTIONS,

NON-BANKING FINANCE INSTITUTIONS ,

INSURANCE COMPANIES,

MODARABAS AND MUTUAL FUNDS: 22

[Other than those reported at a(5)

g) SHAREHOLDERS HOLDING 10% OR MORE

1. M/s. Colgate-Palmolive Co., USA. 5,732

[Other than those reported at a(2)& a(4)]

h) INDIVIDUALS AND OTHER THAN THOSE

MENTIONED ABOVE 1,300

19,109

DETAILS OF PATTERN OF SHAREHOLDING

REQUIREMENTS OF CODE OF CORPORATE

GOVERNANCE


39/41

BALANCE SHEET 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003

(Rupees in '000)

Property,plant and equipment 966,355 864,837 739,281 622,419 558,156 336,694

Intangible assets 11,600 17,400 23,200 29,000 35,100 41,770

Long t e rm loans a nd s e curit y de pos it s 21,513 17, 706 11,534 8 ,324 6 ,943 8 ,433

999,468 899,943 774,015 659,743 600,199 386,897

Current assets 2,138,856 1,750,582 1 ,337,476 877,981 808,825 674,985

Current liabilities 834,290 818,450 699,948 436,201 463,218 355,984

1,304,566 932,132 637,528 441,780 345,607 319,001

TO TAL AS SETS EMPLO YED 2 ,3 04 ,0 34 1 ,8 32 ,0 75 1 ,4 11 ,5 43 1 ,1 01 ,5 23 9 45 ,8 06 7 05 ,8 98

REPRESENTED BY

Equity

Paid-up capital 191,098 152,879 122,303 122,303 122,303

Documents

Annual Report July 2008