Year Ended June 2011 - Colgate Palmolive Pakistan

CONTENTS
Company Information 2
Core Values 3
Our Equities and Initiatives 4
Notice of Annual General Meeting 10
Financial Summary 12
Directors’ Report 13
Statement of Value Added 17
Statement of Compliance with the Code of Corporate Governance 18
Review Report to the Members on Statement of Compliance with 20
best Practices of Code of Corporate Governance
Auditors’ Report to the Members 21
Balance Sheet 22
Profit and Loss Account 23
Statement of Changes in Equity 24
Cash Flow Statement 25
Notes to and Forming Part of the Financial Statements 26
Pattern of Shareholding 56
Operating and Financial Highlights 58
Form of Proxy
1

COMPANY INFORMATION
BOARD OF DIRECTORS
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
Jerome Graham Webb
Derrick Samuel
A. Aziz H. Ebrahim
Zulfiqar Ali Lakhani
Chairman
Chief Executive
ADVISOR
Sultan Ali Lakhani
AUDIT COMMITTEE
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
Chairman
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

NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the 33rd Annual General Meeting of COLGATE-PALMOLIVE (PAKISTAN) LIMITED
will be held on Monday, September 12, 2011 at 10:00 a.m. at Avari Towers Hotel, Fatima Jinnah Road, Karachi to
transact the following business:
ORDINARY BUSINESS
1. To receive, consider and adopt the audited financial statements for the year ended June 30, 2011 together with the
Directors' and Auditors' Reports thereon.
2. To declare final dividend in cash @ 140% i.e. Rs.14 per share of Rs.10 each and by way of issue of fully paid bonus
shares @ 15% i.e. in the proportion of three shares for every twenty shares held by the members as recommended
by the Board of Directors.
3. To appoint auditors and fix their remuneration.
SPECIAL BUSINESS
4. To consider, subject to declaration of the final dividend as above, capitalization of a sum of Rs.47,386,290 by way
of issue of 4,738,629 fully paid bonus shares of Rs.10 each and if thought fit to pass an ordinary resolution in the
matter.
A statement under section 160 of the Companies Ordinance, 1984 in the above matter including draft of the ordinary
resolution to be passed pertaining to item No. 4 is annexed.
By Order of the Board
KARACHI: August 12, 2011
MANSOOR AHMED
Company Secretary
NOTES:
1. The share transfer books of the Company will remain closed from September 06, 2011 to September 12, 2011, both
days inclusive. Transfers received in order by the Shares Registrar of the Company M/s. FAMCO Associates (Private)
Limited, State Life Building No.1-A, 1st Floor, I.I.Chundrigar Road, Karachi upto September 05, 2011 will be considered
in time for entitlement of the dividend and bonus shares.
2. A member who has deposited his/her shares into Central Depository Company of Pakistan Limited, must bring
his/her participant's ID number and account/sub-account number alongwith original Computerized National Identity
Card (CNIC) or original Passport at the time of attending the meeting.
3. A member entitled to attend and vote at the general meeting may appoint another member as his/her proxy to attend,
speak and vote instead of him/her.
4. Forms of proxy to be valid must be properly filled-in/executed and received at the Company's Registered Office at
Lakson Square, Building No.2, Sarwar Shaheed Road, Karachi not later than 48 hours before the time of the meeting.
5. Members are requested to notify the Shares Registrar of the Company promptly of any change in their addresses.
6. Members who have not yet submitted photocopy of their Computerized National Identity Cards (CNIC) are requested
to send the same to our Shares Registrar at the earliest.
7. Form of Proxy is enclosed herewith.
10

STATEMENT UNDER SECTION 160 OF THE COMPANIES ORDINANCE, 1984
PERTAINING TO ITEM NO.4
The Board of Directors has recommended to the members of the Company to declare final dividend in cash @ 140%
and by way of issue of fully paid bonus shares @ 15% for the year ended June 30, 2011. Subject to approval of the
Board of Directors' recommendation as above, the resolution as under will be considered to be passed by the members
as an ordinary resolution:
"RESOLVED THAT:
i) a sum of Rs.47,386,290 out of the profit for the year ended June 30, 2011 be capitalized and applied in making
payment in full of 4,738,629 ordinary shares of Rs.10 each and that the said shares be allotted as fully paid
up bonus shares to those members of the Company whose names appear in the register of members on
September 12, 2011 @ 15% i.e. in the proportion of 3 shares for every 20 existing shares held by the members
and that such new shares shall rank pari passu in all respects with the existing ordinary shares of the Company,
however, they will not qualify for the final cash dividend declared for the year ended June 30, 2011;
ii)
iii)
in the event of any member holding less than 20 shares or a number of shares which is not an exact multiple
of 20, the fractional entitlements of shares of such members shall be consolidated into whole new shares and
the Directors of the Company be and are hereby authorized to arrange sale of the shares constituted thereby
in such manner as they may think fit and to pay the proceeds of the sale to such of the members according to
their entitlement;
for the purpose of giving effect to the above, the Directors be and are hereby authorized to take all necessary
steps in the matter and to settle any question or difficulties that may arise in regard to the distribution of the
said new shares as they think fit."
The Directors are interested in this business only to the extent of their entitlement of dividends and bonus shares as
ordinary shareholders.
11

FINANCIAL SUMMARY
Year Ended June 30, 2011
Gross sales
Rs in million
Shareholders' equity
Rs in million
Earnings Per Share
Rupees
20,000
18,000
18,132
4,500
4,374
16,000
14,000
13,995
14,584
4,000
3,500
3,577
40.00
35.00
36.45
36.95
12,000
3,000
2,700
30.00
10,000
2,500
25.00
23.74
8,000
2,000
20.00
6,000
1,500
15.00
4,000
1,000
10.00
2,000
500
5.00
2009 2010 2011
2009 2010 2011
2009 2010 2011
Year ended June 30
Rupees in million except EPS
2009
2010
% Change
2011
% Change
Gross Sales
Operating Income
Net Profit After Tax
Earnings per share - restated (Rs.)
Shareholders' Equity
13,995
1,195
750
23.74
2,700
14,584
1,775
1,152
36.45
3,577
4.2%
48.5%
53.6%
53.5%
32.5%
18,132
1,796
1,167
36.95
4,374
24.3%
1.2%
1.4%
1.4%
22.3%
12

DIRECTORS’ REPORT
The Directors are pleased to present the Annual Report with the audited financial statements of the Company for the
year ended June 30, 2011.
OPERATING RESULTS
Revenue:
During the year ended June 30, 2011, Company's gross and net revenue increased by 24.3% and 22.7% respectively,
attributed by strong volume growth across all categories.
Gross Profit:
Gross profit remained under pressure, and dropped by 3.80 percent compared to last year (2011: 29.4%; 2010: 33.2%)
due to higher raw material prices, energy costs and freight charges.
Additionally during the year, depreciation increased by 40.8 percent due to major capital investments in plant and
machinery.
Despite substantial increase in manufacturing cost and reduction in gross profit percentage, Company's gross profit
increased in absolute terms by 8.6%, mainly due to strong volume growth. Selective price increases during the year
enabled the Company to support brand margins. However, due to tough market conditions, this increase was not
sufficient to fully offset the effect of the rising costs.
Other Overheads:
In spite of various challenges which included acute electricity shortages, deteriorating law and order situation and a
fragile economy, the Company 's management has been successful in reducing overall 'selling and distribution costs'
(2011: 14.9%; 2010: 16.0%) and 'administrative expenses' (2011: 1.1%; 2010: 1.2%), in terms of percentage to net
sales. This has been achieved through continual improvement of controls as well as prudent spending.
In absolute terms, 'selling and distribution costs' and 'administrative expenses' increased by 14.6% and 11.1% respectively.
This increase is noticeably on a lower side compared to persistent inflationary pressures. In 'selling and distribution
costs', freight expenses have shown a major increase, mainly due to increased sales volume of the Company coupled
with increased fuel prices. To defend and sustain this increased volume, and to consolidate market share of our brands,
Company's advertising and sales promotion expenses are also on the rise.
Operating Profit & NPAT:
Company's operating profit and net profit increased by 1.2% and 1.4% respectively. Earnings per Share also increased
marginally by 1.4% from Rs.36.45 in prior year to Rs.36.95 in current year.
A brief financial analysis is presented as under:
Operating Results
2010-11
Rs. in million
2009-10
Rs. in million
Increased By
Gross Revenue 18,132 14,584 24.3%
Net Revenue 14,150 11,529 22.7%
Gross Profit 4,161 3,830 8.6%
Gross Profit % 29.4% 33.2% -3.80%
Operating Profit 1,796 1,775 1.2%
Profit After Tax 1,167 1,152 1.4%
Profit After Tax (% to sale) 8.2% 10.0% -1.80%
Earnings per Share - Rupees 36.95 36.45 1.4%
13

Profit and Appropriations
2010-11
Rs. in thousand
Profit After Tax 1,167,380
Un-appropriated profit brought forward 6,930
Profit available for appropriation 1,174,310
Appropriations:
Proposed Cash Dividend
@ 140% i.e. Rs.14.00 per share
(2010; @ 135% i.e. Rs. 13.50 per share). 442,273
Reserve for proposed issue of bonus
shares @ of 15% i.e., 3 shares for
every 20 shares (2010; @ 15% i.e. 3
shares for every 20 shares). 47,386
Transfer to General Reserve 680,000
Un-appropriated profit carried forward 4,651
CASH FLOWS
During the year, net cash and bank balances dropped by Rs.469 million mainly due to capital expending on plant &
machinery and increased working capital requirement. A significant proportion of the investment was financed through
internal cash generation.
HUMAN RESOURCES
The Company offers its employees training courses on a continual basis and also offers them the opportunity to receive
training in other Colgate Subsidiaries.
STRIVING TOWARDS A HEALTHIER SOCIETY----------- CSR
The Company continued with its efforts for the betterment of the community as a whole by sponsoring various events
throughout the year. In order to increase awareness about oral health and hygiene, specialized oral health programs
such as 'Bright Smile Bright Future' have continued. An additional oral care health program "Seekho aur Jeeto Scholarship"
was introduced with the objective of increasing awareness of Oral Hygiene by educating youth on healthy oral care
tips, whereby every entrant gets a chance to win a Colgate Scholarship.
Towards honoring its corporate social responsibility, the Company had actively participated and contributed for the relief
efforts of "Flood Victims" as well as for internally displaced persons (IDPs).
RECOGNITION
For the 6th time, Company's achievements and overall performance have been recognized by the Management
Association of Pakistan and was awarded "Corporate Excellence Award" at the 27th Corporate Excellence Award
Ceremony.
The Karachi Stock Exchange also recognized your Company's performance in the financial year under report and was
among the recipients of 'Top 25 Companies Awards'. This is the 5th consecutive time that the Company has been
presented this award. This shows management's continued commitment and dedication in achieving the desired
operating results and in promoting the Company's image and goodwill.
14

CHALLENGES AND PROSPECTS
Although Company has registered a strong growth with respect to volumes during the current year, pressures on
Company's gross margins are likely to intensify in light of further expected increase in raw material prices. Power outages
will remain a big challenge to the progress of the manufacturing sector in Pakistan. Persistent inflation and increasing
unemployment impacting disposable income will also be factors to reckon with. All these above factors are likely to
adversely affect the results of the Company during the ensuing financial year.
However, management of your company remains to be committed to overcoming above challenges through sharp
focus on assessing the needs of our consumers and bringing improved operational efficiencies and synergies through
optimization of capital investments undertaken during the current year.
Continued focus on product quality & innovation and developing & enhancing our volume base through aggressive
marketing programs will remain our core objective in the ensuing year. The management remains focused to achieve
these objectives through integration of all business strategies along with efficient cost curtailing measures.
CORPORATE AND FINANCIAL REPORTING FRAMEWORK
The Directors are pleased to state that the Company is compliant with the provisions of the Code of Corporate Governance
as required by Securities & Exchange Commission of Pakistan (SECP).
Following are the statements on Corporate and Financial Reporting Frame Work:
· The financial statements prepared by the management of the Company, accurately present its state of affairs,
the results of its operations, its cash flows and its changes in equity.
· The Company has maintained proper books of accounts.
· Appropriate accounting policies have been consistently applied in preparation of financial statements and
accounting estimates are based on reasonable and prudent judgment.
· In preparation of these financial statements, International Accounting Standards, as applicable in Pakistan, have
been followed.
· The system of internal control is sound in design. The system is being continuously monitored by an Internal
Audit function and through other such monitoring procedures. The process of monitoring Internal Controls will
continue as an ongoing process with the objective to further strengthen the controls and bring in improvements
in the system.
· There are no doubts upon the Company's ability to continue as a going concern.
· There has been no material departure from the best practices of corporate governance, as detailed in the listing
regulations.
· The summary of key operating and financial data of the Company of the last six years is annexed in this report.
· Information about taxes and levies is given in the notes to the accounts.
· The valuation of investment made by the staff retirement benefit funds based on their respective accounts are
as follows:
2010-11
Rs. in million
Provident Fund 298.717
Gratuity Fund 107.068
15

· The board held four (4) meetings during the year. Attendance by each Director was as follows:
Attendance
Mr. Iqbal Ali Lakhani 3
Mr. Zulfiqar Ali Lakhani 4
Mr. Amin Mohammed Lakhani 2
Mr. Tasleemuddin Ahmed Batlay 4
Mr. A. Aziz Ebrahim 3
Mr. Jerome Graham Webb Nominee of CP-USA 3
Mr. Derrick Samuel Nominee of CP-USA 3
Leave of absence was granted to directors who could not attend some of the Board meetings.
AUDITORS
The Auditors, Messrs A. F. Ferguson & Co., Chartered Accountants, retire at the conclusion of the 33rd Annual General
Meeting. Bieng eligible, they have offered themselves for re-appointment.
PATTERN OF SHAREHOLDINGS
A statement showing pattern of shareholding of the Company and additional information as at June 30, 2011 is included
in the report.
ACKNOWLEDGMENTS
We take pleasure by thanking members of the management, other employees and staff for their continued commitment
to the success of the Company. We also value the support and cooperation of our customers, suppliers, bankers and
all stakeholders and wish to record our thanks and gratitude.
On behalf of Board of Directors
Karachi: July 28, 2011
IQBAL ALI LAKHANI
Chairman
16

STATEMENT OF VALUE ADDED
Year Ended June 30
2011 2010
(Rs. in million)
Wealth Generated
Total revenue net of discount and allowances 17,218 13,879
Bought-in-material and services 11,610 9,169
5,608 4,710
Wealth Distributed
To Employees
Salaries, benefits and other costs 638 547
To Government
Income tax, sales tax 3,612 2,873
To Providers of Capital
Dividend to shareholders 489 412
Mark up/interest expenses on borrowed funds 12 11
Retained for Reinvestment and Growth
Depreciation and Retained Profits 857 867
5,608 4,710
64.4%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
15.3%
11.4%
8.7%
0.2%
10.0%
0.0%
To Government
Depreciation &
Retained Profit
To Employees
To Shareholders
To Lenders
17

STATEMENT OF COMPLIANCE WITH THE
CODE OF CORPORATE GOVERNANCE
FOR THE YEAR ENDED JUNE 30, 2011
This statement is being presented to comply with the Code of Corporate Governance (Code) contained in listing
regulations of Karachi and Lahore Stock Exchanges for the purpose of establishing a framework of good governance,
whereby a listed company is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:
1. The Board comprises of seven directors including two executive directors. The Company encourages the
representation of independent non-executive directors on its board. There are five non-executive directors, one
of them is the chairman, while two represent the joint venture Company and the remaining two are non-executive.
2. The directors have confirmed that none of them is serving as a director in more than ten listed companies, including
this Company.
3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment
of any loan to a banking company, a DFI or an NBFI.
4. No casual vacancy occurred in the Board during the current year.
5. The Company has prepared a 'Statement of Ethics and Business Practices', which has been signed by all the
directors and employees of the Company at the time of joining and subsequently confirmed by the departmental
heads.
6. The Board has developed a vision/mission statement, and significant policies of the Company as part of overall
corporate strategy. A complete record of particulars of significant policies alongwith the dates on which they were
approved or amended has been maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment
and determination of remuneration and terms and conditions of employment of the CEO and other executive
director, have been taken by the Board.
8. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the
Board for this purpose and the Board met at least once in every quarter. Written notices of the Board meetings,
alongwith agenda and working papers, were circulated at least seven days before the meetings. The minutes of
the meetings were appropriately recorded and circulated.
9. In compliance of the clause No. xiv of the Code of Corporate Governance of the amended Listing Regulations of
the Stock Exchanges, this year one of the Director of the Company Mr. Tasleemuddin A. Batlay has participated
in the Corporate Governance Leadership Skill Program -part- I for the Certification of Directors under 'the Board
Development Series' Program managed by the Pakistan Institute of Corporate Governance (PICG). The Board
also arranged one orientation course for its directors during the year to apprise them of their duties and responsibilities
and briefed them regarding amendments in the Companies Ordinance/Corporate Laws.
10. The Chief Financial Officer was appointed prior to the implementation of the Code of Corporate Governance. The
remuneration and terms & conditions in case of future appointment on this position will be approved by the Board.
Mr. Mansoor Ahmed was assigned the responsibilities of Company Secretary of Colgate-Palmolive (Pakistan)
Limited in addition to his responsibilities in other Group Companies. Internal Audit function of the Company was
outsourced with the approval of the Board.
11. The directors' report for this year has been prepared in compliance with the requirements of the Code and fully
describes the salient matters required to be disclosed.
18

12. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board.
13. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed
in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the Code.
15. The Board has formed an audit committee. It comprises of two non-executive directors and one executive director.
The Chairman of the committee is a non-execute director.
16. The meetings of the audit committee were held at least once every quarter prior to approval of interim and final
results of the Company. The terms of reference of the committee have been formed and advised to the committee
for compliance.
17. The Board has outsourced internal audit function of the Company to a firm of Chartered Accountants.
18. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
quality control review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the
partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and
all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics
as adopted by Institute of Chartered Accountants of Pakistan.
19. The statutory auditors or the persons associated with them have not been appointed to provide other services
except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC
guidelines in this regard.
20. The related party transactions have been placed before the audit committee and approved by the Board of Directors
with necessary justification for non arm's length transactions and pricing methods for transactions that were made
on terms equivalent to those that prevail in the arm's length transactions only if such terms can be substantiated.
21. We confirm that all other material principles contained in the Code have been complied with.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
Karachi: July 28, 2011
19

A. F. FERGUSON & CO.
REVIEW REPORT TO THE MEMBERS ON STATEMENT OF
COMPLIANCE WITH BEST PRACTICES OF CODE OF
CORPORATE GOVERNANCE
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance
for the year ended June 30, 2011 prepared by the Board of Directors of Colgate-Palmolive (Pakistan) Limited (the
company) to comply with the Listing Regulation No. 35 of the Karachi and Lahore Stock Exchanges where the company
is listed.
The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the company.
Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement
of Compliance reflects the status of the company's compliance with the provisions of the Code of Corporate Governance
and report if it does not. A review is limited primarily to inquiries of the company's personnel and review of various
documents prepared by the company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal
control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special
review of the internal control system to enable us to express an opinion as to whether the Board's statement on internal
control covers all controls and the effectiveness of such internal controls.
Further, Sub-Regulation (xiii a) of Listing Regulation No. 35 of Karachi and Lahore Stock Exchanges requires the
company to place before the Board of Directors for their consideration and approval related party transactions distinguishing
between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions
which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism.
Further, all such transactions are also required to be separately placed before the audit committee. We are only required
to check the approval of the related party transactions by the Board of Directors and placement of such transactions
before the audit committee. We have not carried out any procedures to determine whether the related party transactions
were undertaken at arm's length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance
does not appropriately reflect the status of the company's compliance, in all material respects, with the best practices
contained in the Code of Corporate Governance as applicable to the company for the year ended June 30, 2011.
Karachi, July 28, 2011
A.F. FERGUSON & CO.
Chartered Accountants
A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network
State Life Building No. 1-C, I.I Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan
Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938;
20
Lahore: 23-C, Aziz Avenue, Canal Bank, Gulberg V, P.O.Box 39, Shahrah-e-Quaid-e-Azam, Lahore-54660, Tel: +92 (42) 35715864-71; Fax: +92 (42) 35715872
Islamabad: PIA Building, 3rd Floor, 49 Blue Area, Fazl-ul-Haq Road, P.O.Box 3021, Islamabad-44000; Tel: +92 (51) 2273457-60; Fax: +92 (51) 2277924
Kabul: House No. 1916, Street No. 1, Behind Cinema Bariqot, Nahar-e-Darsan, Karte-4, Kabul, Afghanistan; Tel: +93 (779) 315320, +93 (799) 315320

A. F. FERGUSON & CO.
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of Colgate-Palmolive (Pakistan) Limited as at June 30, 2011 and the
related profit and loss account, statement of changes in equity and cash flow statement together with the notes forming
part thereof, for the year then ended and we state that we have obtained all the information and explanations which,
to the best of our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the company's management to establish and maintain a system of internal control, and prepare
and present the above said statements in conformity with the approved accounting standards and the requirements of
the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require
that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free
of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the above said statements. An audit also includes assessing the accounting policies and significant
estimates made by management, as well as, evaluating the overall presentation of the above said statements. We
believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that-
(a)
(b)
in our opinion, proper books of account have been kept by the company as required by the Companies Ordinance,
1984;
in our opinion-
(i)
(ii)
(iii)
the balance sheet and profit and loss account together with the notes thereon have been drawn up in
conformity with the Companies Ordinance, 1984, and are in agreement with the books of account and are
further in accordance with accounting policies consistently applied;
the expenditure incurred during the year was for the purpose of the company's business; and
the business conducted, investments made and the expenditure incurred during the year were in accordance
with the objects of the company;
(c)
(d)
in our opinion and to the best of our information and according to the explanations given to us, the balance
sheet, profit and loss account, statement of changes in equity and cash flow statement together with the notes
forming part thereof conform with approved accounting standards as applicable in Pakistan, and give the
information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true
and fair view of the state of the company's affairs as at June 30, 2011 and of the profit, its changes in equity
and cash flows for the year then ended; and
in our opinion, zakat deductible at source under the Zakat and Ushr Ordinance, 1980 was deducted by the
company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
Karachi, July 28, 2011
A.F. FERGUSON & CO.
Chartered Accountants
Audit Engagement Partner: Saad Kaliya
A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network
State Life Building No. 1-C, I.I Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan
Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938;
Lahore: 23-C, Aziz Avenue, Canal Bank, Gulberg V, P.O.Box 39, Shahrah-e-Quaid-e-Azam, Lahore-54660, Tel: +92 (42) 35715864-71; Fax: +92 (42) 35715872
Islamabad: PIA Building, 3rd Floor, 49 Blue Area, Fazl-ul-Haq Road, P.O.Box 3021, Islamabad-44000; Tel: +92 (51) 2273457-60; Fax: +92 (51) 2277924
Kabul: House No. 1916, Street No. 1, Behind Cinema Bariqot, Nahar-e-Darsan, Karte-4, Kabul, Afghanistan; Tel: +93 (779) 315320, +93 (799) 315320
21

BALANCE SHEET
AS AT JUNE 30, 2011
ASSETS
Note
2011 2010
(Rupees in ’000)
NON-CURRENT ASSETS
Property, plant and equipment 4 2,680,784 1,873,118
Intangible assets 5 18,775 32,155
Long term loans 6 13,528 16,631
Long term security deposits 7 9,181 6,966
2,722,268 1,928,870
CURRENT ASSETS
Stores and spares 8 36,353 18,805
Stock in trade 9 2,370,938 1,322,237
Trade debts 10 321,073 316,779
Loans and advances 11 92,674 105,363
Trade deposits and short term prepayments 12 22,925 15,972
Other receivables 13 50,473 4,191
Profit receivable from banks 14 13 3,224
Taxation 174,573 3,108
Cash and bank balances 15 618,843 1,088,021
3,687,865 2,877,700
TOTAL ASSETS 6,410,133 4,806,570
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital 16 400,000 400,000
Issued, subscribed and paid-up share capital 16 315,909 274,704
Reserves 17 4,057,766 3,302,442
4,373,675 3,577,146
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation 18 354,473 212,000
Long term deposits 19 13,945 6,280
368,418 218,280
CURRENT LIABILITIES
Trade and other payables 20 1,667,916 1,010,461
Accrued mark-up 21 124 58
Current maturity of long term loan - 625
1,668,040 1,011,144
TOTAL LIABILITIES 2,036,458 1,229,424
CONTINGENCIES AND COMMITMENTS 23
TOTAL EQUITY AND LIABILITIES 6,410,133 4,806,570
The annexed notes 1 to 41 form an integral part of these financial statements.
22
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2011
Note
2011 2010
(Rupees in ’000)
Turnover 18,132,057 14,583,936
Sales tax (2,778,948) (2,142,056)
Special excise duty (215,807) (118,273)
Trade discounts (986,882) (794,297)
Net turnover 14,150,420 11,529,310
Cost of sales 24 (9,989,856) (7,699,401)
Gross profit 4,160,564 3,829,909
Selling and distribution costs 25 (2,115,193) (1,846,098)
Administrative expenses 26 (157,749) (142,021)
Other operating expenses 27 (164,081) (156,206)
Other operating income 28 72,573 89,644
Profit from operations 1,796,114 1,775,228
Finance cost 29 (11,933) (11,036)
Profit before taxation 1,784,181 1,764,192
Taxation 30 (616,801) (612,553)
Profit after taxation 1,167,380 1,151,639
Earnings per share (rupees) - restated 31 36.95 36.45
The annexed notes 1 to 41 form an integral part of these financial statements.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
23

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED JUNE 30, 2011
Issued,
subscribed
and paid up
share capital
Capital
reserve -
share
premium
General
reserve
Revenue reserves
Unappropriated
profit
Total
(Rupees in ‘000)
Balance as at July 1, 2009
238,873
13,456
1,690,000
757,882)
2,700,211)
Comprehensive income for the year
Net profit for the year ended June 30, 2010
-
-
-
1,151,639)
1,151,639)
Other comprehensive income
Transfer to general reserve
-
-
440,000
(440,000)
-
Total other comprehensive income
-
-
440,000
(440,000)
-
Total comprehensive income for the
year ended June 30, 2010
-
-
440,000
711,639)
1,151,639)
Transactions with owners
Final dividend for the year ended June 30, 2009
(Rs 11.50 per share)
-
-
-
(274,704)
(274,704)
Bonus shares issued at the rate of three
shares for every twenty shares held
35,831
-
-
(35,831)
-
Total transactions with owners
35,831
-
-
(310,535)
(274,704)
Balance as at June 30, 2010
274,704
13,456
2,130,000
1,158,986)
3,577,146)
Comprehensive income for the year
Net profit for the year ended June 30, 2011
-
-
-
1,167,380)
1,167,380)
Other comprehensive income
Transfer to general reserve
-
-
740,000
(740,000)
-
Total other comprehensive income
-
-
740,000
(740,000)
-
Total comprehensive income for the
year ended June 30, 2011
-
-
740,000
427,380)
1,167,380)
Transactions with owners
Final dividend for the year ended June 30, 2010
(Rs 13.50 per share)
-
-
-
(370,851)
(370,851)
Bonus shares issued at the rate of three
shares for every twenty shares held
41,205
-
-
(41,205)
-
Total transactions with owners
41,205
-
-
(412,056)
(370,851)
Balance as at June 30, 2011
315,909
13,456
2,870,000
1,174,310)
4,373,675)
The annexed notes 1 to 41 form an integral part of these financial statements.
24
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Note
2011 2010
(Rupees in ’000)
Cash generated from operations 32 1,485,828 1,776,475
Finance costs paid (11,867) (11,145)
Taxes paid (650,926) (659,539)
Long term loans 2,249 613
Long term security deposits (2,215) (535)
Long term deposits 7,665 622
Net cash inflow from operating activities 830,734 1,106,491
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure (994,061) (838,694)
Purchase of intangible assets (5,795) (14,820)
Purchase of short term investment (200,000) -
Sale proceeds on disposal of property, plant and equipment 9,415 12,329
Profit received on savings and term deposit accounts 48,267 74,888
Profit received on a term deposit receipt 3,087 68
Sale proceeds on disposal of short term investment 210,220 -
Net cash outflow from investing activities (928,867) (766,229)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term loan (625) (2,500)
Dividend paid (370,420) (274,407)
Net cash outflow from financing activities (371,045) (276,907)
Net (decrease) / increase in cash and cash equivalents (469,178) 63,355
Cash and cash equivalents at the beginning of the year 1,088,021 1,024,666
Cash and cash equivalents at the end of the year 15 618,843 1,088,021
The annexed notes 1 to 41 form an integral part of these financial statements.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
25

NOTES TO AND FORMING PART OF THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1. THE COMPANY AND ITS OPERATIONS
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, Pakistan.
The Company is mainly engaged in the manufacture and sale of detergents, personal care and other related
products.
2. SIGNIFICANT ACCOUNTING INFORMATION AND POLICIES
2.1 Accounting convention
These financial statements have been prepared under the historical cost convention except for the recognition
of certain employee retirement benefits at present value in accordance with the actuarial recommendations as
referred to in note 2.13.
2.2 Statement of compliance
These financial statements have been prepared in accordance with the requirements of the Companies Ordinance,
1984 (the Ordinance) and the approved accounting standards as applicable in Pakistan. Approved accounting
standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International
Accounting Standards Board as are notified under the Ordinance and the requirements of and directives issued
under that Ordinance. However, the requirements of and the directives issued under that Ordinance have been
followed where those requirements are not consistent with the requirements of the IFRSs, as notified under the
Ordinance.
Standards, amendments to approved accounting standards and new interpretations becoming effective
during the year ended June 30, 2011:
There are certain new approved accounting standards, amendments to approved accounting standards and
interpretations that are mandatory for accounting periods beginning on or before January 1, 2010 but are
considered not to be relevant or to have any significant effect on the Company's operations and are, therefore,
not disclosed in these financial statements.
Standards, amendments to approved accounting standards and interpretations that are not yet effective
and have not been early adopted by the Company:
IAS 24 (Revised), ‘Related party disclosures’, issued in November 2009. This revised standard supersedes IAS
24, ‘Related party disclosures’, issued in 2003. IAS 24 (Revised) is mandatory for periods beginning on or after
January 1, 2011. The revised standard clarifies and simplifies the definition of a related party and removes the
requirement for government-related entities to disclose details of all transactions with the government and other
government-related entities. The revision is not expected to have a material impact on the Company’s financial
statements.
There are certain amendments to the standards and interpretations that are mandatory for accounting periods
beginning on or after January 1, 2011 but are considered not to be relevant or do not have any significant effect
on the Company's operations and are, therefore, not detailed in these financial statements.
2.3 Property, plant and equipment
These assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any, except
for leasehold land and capital work in progress which are stated at cost.
26

Assets having cost exceeding the minimum threshold as determined by the management are capitalised. All
other assets are charged to income in the year when acquired.
Depreciation is charged to income applying the straight line method by applying rates (as stated in note 4.1.1).
Depreciation on additions is charged from the month in which the asset is put to use and on disposal upto the
month of disposal at the rates stated in note 4.1.1.
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.
Residual values are determined by the management as the amount it expects it would receive currently for an
item of 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 management based on the expected 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.
Profit or loss on disposal of assets is recognised in income currently.
2.3.1 Capital work in progress
All expenditure 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.
2.4 Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance.
Intangible assets are recognised when it is probable that the expected future economic benefits will flow to the
entity and the cost of the asset can be measured reliably. Cost of the intangible asset (i.e. computer software)
includes purchase cost and directly attributable expenses incidental to bring the asset for its intended use.
Costs associated with maintaining computer software are recognised as an expense as and when incurred.
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses, if any.
Amortisation is charged over the estimated useful life of the asset on a systematic basis applying the straight
line method.
Useful lives of intangible operating assets are reviewed, at each balance sheet date and adjusted if the impact
of amortisation is significant.
2.5 Impairment
The Company assesses at each balance sheet date whether there is any indication that property, plant and
equipment and intangible assets may be impaired. If such indication exists, the carrying amounts of such assets
are reviewed to assess whether they are recorded in excess of their recoverable amounts. Where carrying values
exceed recoverable amounts, assets are written down to their recoverable amounts and the differences are
recognised in income currently.
2.6 Stores and spares
Stores and spares are valued at lower of cost using the moving average method and estimated net realisable
value. Items in transit are valued at cost as accumulated upto the balance sheet date. Provision for obsolete
items, if any, is based on their condition as at the balance sheet date depending upon the management's
judgement.
Loose tools are charged to income as and when purchased as their inventory is generally not significant.
27

2.7 Stock in trade
Stock in trade is valued at the lower of cost and estimated net realisable value. Cost is determined as follows:
Stages of stock in trade
Raw and packing material
Raw and packing material in bonded
warehouse and in transit
Work in process and finished goods
Trading goods
Basis of valuation
- Moving average cost
- Cost accumulated upto the balance sheet
date
- Cost of direct materials and appropriate
portion of production overheads
- Moving average cost
Net realisable value is determined on the basis of estimated selling price of the product in the ordinary course
of business less estimated costs of completion and the estimated costs necessary to be incurred for its sale.
2.8 Trade debts and other receivables
Trade debts are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method less provision for impairment. A provision for impairment of trade debts and other receivables
is established when there is objective evidence that the Company will not be able to collect all amounts due
according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the
debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered
indicators that the trade receivable is impaired. Debts, considered irrecoverable, are written off, as and when
identified.
2.9 Taxation
Current
Provision for current taxation is based on taxable income for the year at the current rates of taxation after taking
into account tax credits and tax rebates available, if any, and tax paid on presumptive basis.
Deferred
Deferred tax is recognised using the balance sheet liability method on all temporary differences between the
carrying amount of the assets and liabilities and their tax bases.
Deferred tax liabilities are recognised for all major taxable temporary differences.
Deferred tax assets are recognised for all major deductible temporary differences to the extent that it is probable
that taxable profit will be available against which the deductible temporary differences can be utilised.
The carrying amount of the deferred tax asset is reviewed at each balance sheet date and is recognised only
to the extent that it is probable that future taxable profits will be available against which the assets may be utilised.
Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the
extent that it becomes probable that future taxable profit will allow deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rate that are expected to apply to the year when the
asset is utilised or the liabiltiy is settled, based on the tax rates that have been enacted or substantially enacted
at the balance sheet date.
2.10 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of the cash flow statement,
cash and cash equivalents comprise of cash in hand, deposits held with banks and running finances under markup
arrangement.
2.11 Borrowing costs
28
Borrowing costs relating to the acquisition, construction or production of a qualifying asset are recognised as
part of the cost of that asset. All other borrowing costs are recognised as an expense in the period in which these
are incurred.

2.12 Provisions
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 resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed periodically
and adjusted to reflect the current best estimates.
2.13 Staff retirement benefits
Defined benefit plan
The Company operates a defined benefit plan i.e. an approved funded gratuity scheme for all its permanent
employees subject to attainment of retirement age and minimum service of prescribed period. Contributions are
made to the fund on the basis of 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 value of plan assets, at the beginning 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 contributions are made, both by the company and its employees, to the fund at the rate of 9 percent of
the basic salaries of employees.
Compensated absences
The liability in respect of compensated absences of employees is accounted for in the period in which the
absences accrue.
2.14 Revenue recognition
- 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 applicable rate.
- Insurance commission income is recognised as and when received.
2.15 Foreign currency translation
Transactions in foreign currencies are translated in Pakistan rupees (functional and presentation currency) at
the exchange rate prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies are
translated into Pakistan rupees at the rates of exchange approximating those prevalent at the balance sheet
date. Exchange differences are charged to income currently.
2.16 Dividend and other appropriations
Dividend is recognised as a liability in the period in which it is declared. Appropriations of profit are reflected in
the statement of changes in equity in the period in which such appropriations are approved.
2.17 Financial instruments
2.17.1 Financial assets
The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans
and receivables, available-for-sale and held to maturity. The classification depends on the purpose for which the
financial assets were acquired. Management determines the classification of its financial assets at the time of
initial recognition.
a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading and financial assets
designated upon initial recognition as at fair value through profit and loss. A financial asset is classified as held
for trading if acquired principally for the purpose of selling in the short term. Assets in this category are classified
as current assets.
29

) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. They are included in current assets, except for maturities for greater than twelve months
after the balance sheet date, which are classified as non-current assets. Consistent with prior years, loans and
receivables with less than twelve months maturities are classified as trade debts, loans and advances, deposits,
other receivables and profit receivable from banks in the balance sheet.
c) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified
in any of the other categories. They are included in non-current assets unless management intends to dispose
of the investments within twelve months from the balance sheet date. Available-for-sale financial assets are
classified as short term investments in the balance sheet.
Changes in fair value of securities classified as available-for-sale are recognised in equity.
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments
recognised directly in equity are included in the profit and loss account as gains and losses from investment
securities. Interest on available-for-sale securities calculated using effective interest method is recognised in the
profit and loss account. Dividends on available-for-sale equity intruments are recognised in the profit and loss
account when the Company's right to receive payments is established.
d) Held to maturity
Financial assets with fixed or determinable payments and fixed maturity, where management has the intention
and ability to hold till maturity are carried at amortised cost.
All financial assets are recognised at the time when the company becomes a party to the contractual provisions
of the instrument. Regular purchases and sales of investments are recognised at trade date i.e. the date on which
the Company commits to purchase or sell the asset.
Financial assets are initially recognised at fair value plus transaction costs for all financial assets not carried at
fair value through profit and loss. Financial assets carried at fair value through profit and loss are initially recognised
at fair value and transaction costs are expensed in the profit and loss account.
The fair values of quoted investments are based on current prices. If the market for a financial asset is not active
(for unlisted securities), the Company measures the investments at cost less impairment in value, if any.
Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently
carried at fair value. 'Loans and receivables' and 'held to maturity' investments are carried at amortised cost using
effective interest rate method.
Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have
been transferred and the Company has transferred substantially all risks and rewards of ownership.
The Company assesses at each balance sheet date whether there is objective evidence that a financial asset
or group of financial assets is impaired. If any such evidence exists for 'available-for-sale' financial assets, the
cumulative loss is removed from equity and recognised in the profit and loss account. Impairment losses recognised
in the profit and loss account on equity instruments are not reversed through the profit and loss account.
2.17.2 Financial liabilities
All financial liabilities are recognised at the time when the Company becomes a party to the contractual provisions
of the instrument.
Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost using
the effective yield method.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.
Where an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange and modification is treated as
a derecognition of the original liability and the recognition of a new liability, and the difference in respective
carrying amounts is recognised in the profit and loss account.
30

2.17.3 Off-setting of financial assets and financial liabilities
A financial asset and a financial liability is offset 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 settle on a net basis
or to realise the asset and settle the liability simultaneously.
2.18 Transactions with related parties
Consistent with prior years, the Company enters into transactions with related parties for sale or purchase of
goods and services on mutually agreed prices.
2.19 Contingent liabilities
Contingent liability is disclosed when:
- there is a possible obligation that arises from past events and whose existence will be confirmed only by
the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the
company; or
- there is present obligation that arises from past events but it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot
be measured with sufficient reliability.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements in conformity with approved accounting standards requires the use of
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 recoverable amount, residual values and useful lives
of property, plant and equipment (note 4);
b) assumptions and estimates used in determining the useful lives and residual values of intangible assets
(note 5);
c) assumptions and estimates used in writing down items of stock in trade to their net realisable value (note
9);
d) assumptions and estimates used in calculating the provision for impairment for trade debts (note 10);
e) assumptions and estimates used in the recognition of deferred taxation (note 18);
f) assumptions and estimates used in accounting for defined benefit plan (note 39); and
g) assumptions and estimates used in disclosure and assessment of provision for contingencies (note 23).
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.
4. PROPERTY, PLANT AND EQUIPMENT
Note
2011 2010
(Rupees in ’000)
Operating fixed assets 4.1 2,088,144 1,318,071
Capital work in progress 4.2 592,640 555,047
2,680,784 1,873,118
31

4.1 Operating fixed assets
4.1.1 The following is a statement of operating fixed assets:
At July 1, 2009
Cost
Accumulated depreciation
Net book value
Year ended June 30, 2010
Factory
Electric
Leasehold building on Plant and fittings and Gas Furniture Tools and Computers and Office
land leasehold machinery installation installation and fixtures equipment
Vehicles
accessories equipment
Total
land
-------------------------------------------------------------------------(Rupee'000)----------------------------------------------------------------------
40,973
-
40,973
228,644)
(95,023)
133,621)
996,265)
(377,972)
618,293)
57,149)
(20,783)
36,366)
154)
(86)
68)
7,294)
(4,277)
3,017)
76,778)
(35,588)
41,190)
191,070)
(86,498)
104,572)
43,759)
(15,312)
28,447
26,608)
(8,677)
17,931)
1,668,694)
(644,216)
1,024,478)
Additions
Transfers from capital work in
progress during the year
-
-
978)
34,552)
14,465)
258,549)
2,160)
6,959)
-
-
596)
20,140)
17,927)
4,769)
48,717)
-
7,061)
805)
7,206)
2,452)
99,110)
328,226)
Disposals (note 4.1.7)
Cost
Depreciation
Net book value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(14,735)
8,448)
(6,287)
-
-
-
-
-
-
(14,735)
8,448)
(6,287)
Write offs (note 4.1.3)
Cost
Depreciation
Net book value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(467)
374)
(93)
(23)
5)
(18)
(490)
379)
(111)
Depreciation charge for the year
(note 4.1.8)
Net book value as at June 30, 2010
-
40,973
(14,386)
154,765)
(69,071)
822,236)
(3,864)
41,621)
(7)
61)
(756)
22,997)
(8,559)
55,327)
(16,815)
130,187)
(10,738)
25,482)
(3,149)
24,422)
(127,345)
1,318,071)
Year ended June 30, 2011
Additions
Transfers from capital work in
progress during the year
30,663
-
587
305,320
73,031
412,093
1,013)
31,278)
-
-
2,308)
26,099)
7,321)
26,943)
19,011)
2,298)
8,312)
4,466)
2,184)
3,351)
144,430)
811,848)
Transfers with in fixed assets
Cost
Depreciation
Net book value
-
-
-
7,502)
(4,050)
3,452)
(8,235)
4,269)
(3,966)
134)
(120)
14)
-
-
-
-
-
-
(1,386)
338)
(1,048)
-
-
-
-
-
-
1,985)
(437)
1,548)
-
-
-
Disposals (note 4.1.7)
Cost
Depreciation
Net book value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13,218)
6,975)
(6,243)
(250)
191)
(59)
(46)
2)
(44)
(13,514)
7,168)
(6,346)
Write offs (note 4.1.3)
Cost
Depreciation
Net book value
-
-
-
(518)
409)
(109)
(1,701)
1,389)
(312)
(17)
12)
(5)
-
-
-
(1,048)
933)
(115)
(2,529)
2,055)
(474)
-
-
-
(732)
635)
(97)
(522)
420)
(102)
(7,067)
5,853)
(1,214)
Depreciation charge for the year
(note 4.1.8)
-
(21,295)
(98,804)
(5,048)
(7)
(4,579)
(10,024)
(21,307)
(13,382)
(4,199)
(178,645)
Net book value as at
June 30, 2011
71,636
442,720) 1,204,278)
68,873)
54)
46,710)
78,045)
123,946)
24,722)
27,160)
2,088,144)
32

At June 30, 2010
Cost
Accumulated depreciation
Net book value
Factory
Electric
Leasehold building on Plant and fittings and Gas Furniture Tools and Computers and Office
land leasehold machinery installation installation and fixtures equipment
Vehicles
accessories equipment
Total
land
-------------------------------------------------------------------------(Rupee'000)----------------------------------------------------------------------
40,973
-
40,973
264,174)
(109,409)
154,765)
1,269,279)
(447,043)
822,236)
66,268)
(24,647)
41,621)
154)
(93)
61)
28,030)
(5,033)
22,997)
99,474)
(44,147)
55,327)
225,052)
(94,865)
130,187)
51,158)
(25,676)
25,482)
36,243)
(11,821)
24,422)
2,080,805)
(762,734)
1,318,071)
Annual rates of depreciation (%)
2010
10
10
10
10
10
15
15
20
33
15
At June 30, 2011
Cost
Accumulated depreciation
Net book value
71,636
-
71,636
577,065)
(134,345)
442,720)
1,744,467)
(540,189)
1,204,278)
98,676)
(29,803)
68,873)
154)
(100)
54)
55,389)
(8,679)
46,710)
129,823)
(51,778)
78,045)
233,143)
(109,197)
123,946)
62,954)
(38,232)
24,722)
43,195)
(16,035)
27,160)
3,016,502)
(928,358)
2,088,144)
Annual rates of depreciation (%)
2011
10
10
10
10
10
15
15
20
33
15
4.1.2 Included in fixed assets are few items having cost of Rs 29.045 million (2010: Rs 40.066 million) held by related
parties and of Rs 42.375 million (2010: Rs 29.431 million) held by third parties for manufacturing certain products
of the company. These fixed assets are free of lien and the company has full rights of repossession of these
assets.
4.1.3 During the year, the company has identified certain items of property, plant and equipment from which further
economic benefits are no longer being derived. Therefore, assets having cost of Rs 7.067 million (2010: Rs 0.490
million) and net book value of Rs 1.214 million (2010: Rs 0.111 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 years.
4.1.4 Leasehold land includes land situated in Lahore costing Rs 61.281 million, the possession of which had been
transferred to the company. However, in accordance with the terms of the allotment letter issued to the company
by the local development and management company, the sale deed of land shall be executed upon the completion
of the project. Further, the project has been completed during the year and the process of issuance of sale deed
is in progress.
4.1.5 Included in plant and machinery are assets which are secured with a bank against pari passu charge over plant
and machinery of the company and the charge was not vacated as at June 30, 2011.
4.1.6 No impairment relating to operating fixed assets has been recognised in the current year.
4.1.7 The following operating fixed assets with a net book value exceeding Rs 50,000 were disposed off during the
year:
33

Particulars Mode of disposal Cost Accumulated Net book Sale proceeds / Gain / Particulars of purchasers
depreciation value receivable from
insurance company
(loss)
----------------------- (Rupees in ‘000) ------------------------
Vehicles
Others
Items having
net book
value of less than
Rs. 50,000 each
2011
Maturity Of Company's Car Scheme
--do--
--do--
--do--
--do--
--do--
--do--
--do--
Maturity of Company's Maintained
Car Scheme
Bid
--do--
--do--
--do--
Negotiation
--do--
--do--
--do--
--do--
--do--
Insurance claim
--do--
--do--
Various
365
320
567
1,043
320
320
969
886
936
1,359
504
595
240
1,069
504
995
424
409
925
68
68
68
12,954
560
13,514
245
215
277
701
215
215
651
596
624
518
326
434
119
143
345
405
174
167
394
8
5
11
6,788
380
7,168
120
105
290
342
105
105
318
290
312
841
178
161
121
926
159
590
250
242
531
60
63
57
6,166
180
6,346
120
105
290
342
105
105
318
290
577
1,325
442
455
215
810
425
983
425
409
531
64
64
65
8,465
950
9,415
-
-
-
-
-
-
-
-
265)
484)
264)
294)
94)
(116)
266)
393)
175)
167)
-
4)
1)
8)
2,299)
770)
3,069)
Zubair Uddin Khan,
Employee of the company
Waqar Hyder Zaidi,
Employee of the company
Pervaiz Mallick,
Employee of the company
Rehan Mirza,
Employee of the company
Mumtaz Ahmed ,
Employee of the company
Nadeem Ahmed ,
Employee of the company
Kaleem Ishrat ,
Employee of the company
Syed Hasan Mehdi Kazmi ,
Employee of the company
Altaf Hussain,
Employee of the company
Muhammad Rajal Irshad Khan,
House # 71, Block-2, Karbala Road, Sahiwal
Syed Ahmed Iqbal,
Employee of the company
Maqsood S/O Mehboob Khan,
House # 14K, Garibabad, Liaquatabad, Karachi
Mohammad Ali,
House # D-712, Usman Ghani, Colony,
Block-R, North Nazimabad, Karachi
Muhammad Farooq,
Ex-Employee of the company
Mohsin Ali Bhojani,
Ex-Employee of the company
Mohammad Rafi,
Ex-Employee of the company
Mohammad Ramazan Fattani,
Ex-Employee of the company
Sana Wasay,
Employee of the company
Ahmed Rauf Rehmani,
Employee of the company
Century Insurance Company Limited,
Lakson Square Building No 3,
Sarwar Shaheed Road, Karachi
Century Insurance Company Limited,
Lakson Square Building No 3,
Sarwar Shaheed Road, Karachi
Century Insurance Company Limited,
Lakson Square Building No 3,
Sarwar Shaheed Road, Karachi
Various
2010
14,735
8,448
6,287
12,329
6,042)
34

4.1.8 Depreciation charge for the year has been allocated as follows:
Note
2011 2010
(Rupees in ’000)
Cost of sales 24.1 142,310 101,047
Selling and distribution costs 25 22,568 14,815
Administrative expenses 26 13,767 11,483
178,645 127,345
4.2 Capital work in progress
4.2.1 The following is a statement of capital work in progress:
Balance as at July 1, 2009
Leasehold
Land
-
Factory
building on
leasehold
land
25,124)
Plant Electric
and fittings
machinery and
installation
(Rupees in ‘000)
114,106)
1,579)
Other
assets
2,969)
Total
143,778)
Capital expenditure incurred
during the year
-
172,069)
506,361)
26,159)
34,995)
739,584)
Capital expenditure charged
off during the year
-
-
(89)
-
-
(89)
Transfers
-
(688)
1,037)
-
(349)
-
Transfers to operating
fixed assets (note 4.1.1)
-
(34,552)
(258,549)
(6,959)
(28,166)
(328,226)
Balance as at June 30, 2010
-
161,953)
362,866)
20,779)
9,449)
555,047)
Capital expenditure incurred
during the year
10,000
137,594)
604,033)
26,459)
71,545)
849,631)
Capital expenditure charged
off during the year
-
(144)
-
(36)
(10)
(190)
Transfers
-
21,650)
(16,688)
-
(4,962)
-
Transfers to operating
fixed assets (note 4.1.1)
-
(305,320)
(412,093)
(31,278)
(63,157)
(811,848)
Balance as at June 30, 2011
10,000
15,733)
538,118)
15,924)
12,865)
592,640)
4.2.2 The aforementioned leasehold land is situated in Kotri, the possession of which had been transferred to the
company, however, the transfer deed has not been executed and its execution process is in progress.
35

5. INTANGIBLE ASSETS
Note Goodwill Computer Software
software implementation
Total
At July 1, 2009
(Rupees in ’000)
Cost 43,500 15,269 25,262 84,031
Accumulated amortisation (37,700) (4,257) - (41,957)
Net book value 5,800 11,012 25,262 42,074
Year ended June 30, 2010
Additions 5.2 - - 14,820 14,820
Amount charged off - - (2,761) (2,761)
Transfers - 37,321 (37,321) -
5,800 48,333 - 54,133
Amortisation for the year 5.5 (5,800) (16,178) - (21,978)
Net book value as at June 30, 2010 - 32,155 - 32,155
Year ended June 30, 2011
Additions - 5,795 - 5,795
Amount charged off - - - -
Transfers - - - -
- 37,950 - 37,950
Amortisation for the year 5.5 - (19,175) - (19,175)
Net book value as at June 30, 2011 - 18,775 - 18,775
At June 30, 2010
Cost 43,500 52,590 - 96,090
Accumulated amortisation (43,500) (20,435) - (63,935)
Net book value - 32,155 - 32,155
At June 30, 2011
Cost 43,500 58,000 - 101,500
Accumulated amortisation (43,500) (39,225) - (82,725)
Net book value - 18,775 - 18,775
5.1 Goodwill represents amount paid on acquisition of the brand “Sparkle” from Transpak Corporation Limited.
5.2 This represents cost of SAP software implemented during the year ended June 30, 2010.
5.3 Computer softwares are being amortised over a useful life of 3 years.
5.4 The intangible assets included a trade mark costing Rs 1.5 million in respect of the brand “Sparkle” purchased
on January 4, 2001. The trade mark was fully amortised during the year ended June 30, 2005. However, it is
still in active use.
5.5 Amortisation charge for the year has been allocated as follows:
Note
2011 2010
(Rupees in ’000)
Selling and distribution costs 25 5,286 11,086
Administrative expenses 26 13,889 10,892
19,175 21,978
6. LONG TERM LOANS
Considered good
- due from executives 6.1, 6.2 & 6.3 6,282 9,206
- due from other employees 6.2 18,006 17,331
24,288 26,537
Recoverable within one year 11 (10,760) (9,906)
13,528 16,631
6.1 Reconciliation of carrying amount of loans to executives:
37
Opening balance as at July 1, 2010 / 2009 9,206 8,307
Disbursements 1,850 7,310
Repayments (4,774) (6,411)
Closing balance as at June 30 6,282 9,206

6.2 These loans are interest free and have been given to executives and other employees of the company for
purchase of house, vehicles or for personal use in accordance with their terms of employment. These loans are
to be repaid over a period of two to five years in equal monthly installments. Any outstanding loan due from an
employee at the time of leaving the service of the company is adjustable against final settlement of staff provident
fund.
6.3 The maximum aggregate amount of loans due from executives at the end of any month during the year was Rs
10.084 million (2010: Rs 9.811 million ).
6.4 Long term loans have been carried at cost as the effect of carrying these balances at amortised cost would not
be material.
7. LONG TERM SECURITY DEPOSITS
Note
2011 2010
(Rupees in ’000)
Long term security deposits 7.1 & 7.2 9,181 6,966
7.1 This includes amount of Rs 4.410 million (2010: Rs 4.410 million) representing amount deposited with Water and
Power Development Authority (WAPDA) for enhancement in electricity load for detergent unit at Kotri.
7.2 This includes a Term Deposit Receipt (TDR) amounting to Rs 1.7 million (2010: Rs 1.7 million) issued by a
banking company. This TDR has been issued to provide security to a banking company for issuance of guarantee
against a lien on the TDR. The TDR carries profit at the rate of 7.226% (2010: 4%) per annum and shall mature
on September 1, 2012 at which time the management intends to rollover the TDR.
8. STORES AND SPARES
Stores 26,819 8,842
Spares 8.1 9,534 9,963
24.1.3 36,353 18,805
8.1 This includes spares in transit amounting to Rs 0.576 million (2010: Rs 0.761 million).
9. STOCK IN TRADE
Raw materials
- in hand 810,209 500,712
- in bonded warehouse 358,175 73,399
- in transit 397,096 199,881
24.1.1 1,565,480 773,992
Packing materials
- in hand 173,704 107,862
- in transit 18,194 1,084
- with third parties 91 383
24.1.2 191,989 109,329
Work in process 24.1 68,132 40,399
Finished goods
- in hand 412,069 312,261
- in transit 341 1,912
412,410 314,173
Trading goods
- in hand 129,664 81,119
- in transit 3,263 3,225
132,927 84,344
2,370,938 1,322,237
37

10. TRADE DEBTS
Note
2011 2010
(Rupees in ’000)
Considered good
- due from related parties 10.1 & 10.2 718 776
- others 320,355 316,003
321,073 316,779
Considered doubtful
- others 30,594 21,628
351,667 338,407
Less: Provision for impairment 10.3 & 10.5 30,594 21,628
321,073 316,779
10.1 Trade debts include the following amounts due from related parties:
Merit Packaging Limited 25 42
Clover Pakistan Limited - 384
Century Paper and Board Mills Limited 23 247
Tetley Clover (Private) Limited 555 46
Hasanali Karabhai Foundation 4 4
SIZA Services (Private) Limited 3 3
Television Media Network (Private) Limited 99 44
Cyber Internet Services (Private) Limited - 6
SIZA Foods (Private) Limited 9 -
718 776
10.2 The maximum aggregate amount of receivable due from related parties at the end of any month during the year
was Rs 53.269 million (2010: Rs 57.817 million).
10.3 Provision for impairment
Balance as at the July 1 21,628 7,057
Provision made during the year 27 8,966 17,781
Amounts written off (against provision) - (3,210)
Balance as at the June 30 30,594 21,628
10.4 As at June 30, 2011, trade receivables of Rs 80.169 million (2010: Rs 124.856 million) were past due but not
impaired. These relate to a number of independent customers for whom there is no recent history of default. The
ageing analysis of these trade receivables is as follows:
Upto 1 month 12,789 62,367
1 to 6 months 24,083 35,835
More than 6 months 43,297 26,654
80,169 124,856
10.5 As at June 30, 2011, trade receivables of Rs 30.594 million (2010: Rs 21.628 million) were impaired and provided
for. The ageing of these receivables is as follows:
One year to five years 23,382 14,536
Five years and over 7,212 7,092
30,594 21,628
11. LOANS AND ADVANCES
Considered good
Current portion of long term loans
- due from executives 3,017 3,337
- due from other employees 7,743 6,569
6 10,760 9,906
Advances
- to employees 11.1 9,899 9,836
- to contractors and suppliers 11.2 72,015 85,621
92,674 105,363
38

11.1 Advances to employees are provided to meet business expenses and are settled as and when the expenses
are incurred.
11.2 Advances include the following amounts due from related parties:
Note
2011 2010
(Rupees in ’000)
Century Insurance Company Limited 393 -
Television Media Network (Private) Limited 611 -
Century Publication (Private) Limited 1,992 -
Rollins Industries (Private) Limited - 352
2,996 352
12. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 5,780 3,800
Prepayments 17,145 12,172
22,925 15,972
13. OTHER RECEIVABLES
Receivable from related parties 13.1 & 13.2 7,930 3,490
Federal excise duty claimable - 379
Claims receivable from an insurance company 500 322
Sales tax refundable 41,439 -
Others 604 -
50,473 4,191
13.1 Other receivables include the following amounts due from related parties:
Century Insurance Company Limited 134 106
Clover Pakistan Limited 742 362
Colgate-Palmolive Philippine - 6
Rollins Industries (Private) Limited - 9
Tetley Clover (Private) Limited 7,054 3,007
7,930 3,490
13.2 The maximum aggregate amount receivable from related parties at the end of any month during the year was
Rs 20.938 million (2010: Rs 10.201 million).
14. PROFIT RECEIVABLE FROM BANKS
Profit on savings and term deposit accounts 3 3,190
Profit on a term deposit receipt 10 34
13 3,224
15. CASH AND BANK BALANCES
With banks on:
- Current accounts 140,060 117,847
- Savings accounts 15.1 424,149 741,989
- Term deposit account 15.2 – 200,000
564,209 1,059,836
Cheques in hand 54,376 27,948
Cash in hand 258 237
618,843 1,088,021
15.1 The range of rates of profit on these savings accounts is between 5.00% to 11.75% per annum (2010: 5% to
11% per annum).
15.2 The rate of profit on this term deposit account is nil per annum (2010: 11.50% per annum). The maturity period
of the term deposit account is one month from the date of original issue.
39

16. SHARE CAPITAL
16.1 Authorised Capital
2011 2010
Number of shares
40,000,000 40,000,000
Ordinary shares of Rs 10 each
2011 2010
(Rupees in ’000)
400,000 400,000
16.2 Issued, subscribed and paid-up capital
5,882,353
5,882,353
Ordinary shares of Rs 10 each
fully paid in cash
58,824
58,824
25,708,512
21,587,965
Ordinay shares of Rs 10 each
issued as fully paid bonus shares (note 16.3)
257,085
215,880
31,590,865
27,470,318
315,909
274,704
16.3 These shares include 4,120,547 bonus shares of Rs 10 each (2010: 3,583,085 bonus shares of Rs 10 each)
issued by the company during the current year.
17. RESERVES
2011 2010
(Rupees in ’000)
Capital reserve
- Share premium reserve 13,456 13,456
Revenue reserve
- General reserve 2,870,000 2,130,000
- Unappropriated profit 1,174,310 1,158,986
4,057,766 3,302,442
18. DEFERRED TAXATION
Credit / (debit) balances arising in respect of timing differences relating to:
Accelerated tax depreciation allowance 370,329 224,074
Provision for compensated absences (5,148) (4,504)
Provision for impairment of trade debts (10,708) (7,570)
354,473 212,000
19. LONG TERM DEPOSITS
Security deposits obtained from:
- Distributors 13,440 5,775
- Transporters 500 500
- Others 5 5
13,945 6,280
19.1 These deposits are interest free and are not refundable during the subsistence of relationship with the company.
20. TRADE AND OTHER PAYABLES
40
Trade creditors 20.1 485,428 331,441
Accrued liabilities 20.2 332,395 262,012
Bills payable 596,214 104,882
Amounts due to distributors 19,801 12,629
Special excise duty payable 7,792 8,760
Sales tax payable - 89,192
Royalty payable to an associated undertaking63,999 49,670
Workers’ profits participation fund 20.3 95,821 94,709
Workers’ welfare fund 36,412 35,284
Retention money payable 9,545 7,360
Unclaimed dividend 2,605 2,174
Others 20.4 17,904 12,348
1,667,916 1,010,461

20.1 These balances include the following amounts due to related parties:
Note
2011 2010
(Rupees in ’000)
Hasanali Karabhai Foundation - 467
Princeton Travels (Private) Limited 603 142
Merit Packaging Limited 11,460 1,493
Century Insurance Company Limited - 908
Century Publication (Private) Limited - 2,556
Century Paper & Board Mills Limited 24,212 4,500
Television Media Network (Private) Limited - 4,351
Tetley Clover (Private) Limited 84 186
20.2 These balances include the following amounts due to related parties:
36,359 14,603
Century Paper & Board Mills Limited - 1,517
Clover Pakistan Limited 580 -
Merit Packaging Limited 995 2,084
20.3 Workers' profits participation fund
1,575 3,601
Balance at the beginning of the year 94,709 61,528
Allocation for the year 27 95,821 94,709
190,530 156,237
Less: Payments during the year 94,709 61,528
Balance at the end of the year 95,821 94,709
20.4 These balances include the following amounts due to related parties:
Colgate-Palmolive Pakistan Limited Employees
Contributory Provident Fund Trust 3,397 -
Colgate-Palmolive (Thailand) Limited - 1,072
Colgate-Palmolive (Hong Kong) Limited 299 277
21. ACCRUED MARK-UP
Accrued mark-up on:
3,696 1,349
- Long term loan - 15
- Short term borrowings 124 43
22. SHORT TERM RUNNING FINANCES
124 58
22.1 The company has arranged short-term borrowing facilities from various banks on mark-up basis to the extent of
Rs 1,140 million (2010: Rs 1,140 million), which can be interchangeably utilised as running finance facilities or
import credit facilities. These facilities expired during the year and were renewed subsequently. The renewed
facilities are available for various periods expiring between August 15, 2011 to June 30, 2012. The arrangements
are secured by a joint hypothecation of stocks, stores and spares, trade debts, other current assets and second
charge on immovable assets of the company.
22.2 The mark-up on short-term running finance facilities ranges between 14.27% to 16.00% (2010: 13.36% to 17.00%)
per annum.
22.3 The facilities for opening letters of credit and guarantee as at June 30, 2011 aggregated Rs 3,781.175 million and
Rs 30 million (2010: Rs 3,254.25 million and Rs 30 million) respectively of which the amounts remaining unutilised
at the year end were Rs 2,954.091 million and Rs 9 million (2010: Rs 2,720.264 million and Rs 11.7 million)
respectively.
41

23. CONTINGENCIES AND COMMITMENTS
23.1 Contingencies
23.1.1 As a result of a recovery suit of Rs 31.455 million alongwith interest at the rate of thirteen percent (13%) per
annum filed by the Octroi Contractor against the Government of Sindh, Union Council Bulari and Kotri Association
of Trade and Industries (KATI) in the Civil Court, the Honorable Senior Judge issued a decree of Rs 7.336 million
in favour of Octroi Contractor. KATI had filed an appeal in the High Court of Sindh, whereas, the Octroi Contractor
had also filed an appeal requesting to enhance the amount of decree. Subsequently, the case was transferred
to the Additional District Judge Kotri by the High Court of Sindh. The District Judge allowed the appeal in favour
of KATI and remanded the case to Senior Civil Judge Kotri for adjudication. The relevant case has been dismissed
by the Senior Civil Judge in favour of KATI. Subsequently the Octroi contractor has filed an appeal in the District
Court Jamshoro against the dismissal. If the contractor's appeal is decided in its favour, then the company, being
a member of KATI, would be required to pay its share as determined by the Court out of the total decree amount.
The management of the company, based on the advice of its legal counsel handling the subject matter, is confident
that the appeal will be decided in favour of KATI. Accordingly, no provision has been made in the financial
statements on this account.
23.1.2 Cases have been filed against the company by some employees claiming approximately Rs 1.541 million (2010:
Rs 1.8 million) in aggregate. Provision has not been made in these financial statements for the aforementioned
amounts as the management of the company, based on the advice of its legal counsel handling the subject
cases, is of the opinion that matters shall be decided in the company’s favour.
23.1.3 Post dated cheques have been issued to custom authorities as a security in respect of duties and taxes amounting
to Rs 382.324 million (2010: Rs 114.150 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.
23.1.4 Contingent liabilities in respect of indemnities given to financial institutions for guarantees issued by them on
behalf of the company in the normal course of business aggregate Rs 21 million (2010: Rs 18.3 million).
23.2 Commitments
23.2.1 Commitments in respect of capital expenditure amount to Rs 101.898 million (2010: Rs 58.092 million).
23.2.2 Outstanding letters of credit and acceptances amount to Rs 759.004 million (2010: Rs 519.528 million).
23.2.3 Outstanding duties leviable on clearing of stocks amount to Rs 16.027 million (2010: Rs 8.743 million).
24. COST OF SALES
Note
2011 2010
(Rupees in ’000)
Opening stock of finished goods (including trading goods) 398,517 347,080
Cost of goods manufactured 24.1 8,468,757 6,340,393
Purchases of trading goods 1,667,919 1,410,445
10,535,193 8,097,918
Less: Closing stock of finished goods (including trading goods) 9 545,337 398,517
9,989,856 7,699,401
42

Note
2011 2010
(Rupees in ’000)
24.1 Cost of goods manufactured
Opening stock of work in process 40,399 105,539
Raw materials consumed 24.1.1 & 24.2 5,836,638 4,315,539
Packing materials consumed 24.1.2 & 24.2 1,784,861 1,250,686
Stores and spares consumed 24.1.3 29,889 22,900
Salaries, wages and other benefits 321,078 261,219
Staff retirement gratuity 39.8 10,366 9,958
Provident fund 6,397 5,661
Power and fuel 209,081 169,668
Repairs and maintenance 24,478 29,151
Rent, rates and taxes 1,841 2,244
Insurance 17,670 16,804
Laboratory expenses 5,837 5,429
Cartage 79,297 54,248
Depreciation 4.1.8 142,310 101,047
Other manufacturing expenses 26,747 33,410
8,536,889 6,383,503
Less: Recovery from related parties - 720
Insurance claims against fire damages - 1,991
8,536,889 6,380,792
Less: Closing stock of work in process 9 68,132 40,399
8,468,757 6,340,393
24.1.1 Raw materials consumed
Opening stock 773,992 584,457
Purchases 6,628,126 4,505,074
7,402,118 5,089,531
Less: Closing stock 9 1,565,480 773,992
5,836,638 4,315,539
24.1.2 Packing materials consumed
Opening stock 109,329 91,356
Purchases 1,867,521 1,268,659
1,976,850 1,360,015
Less: Closing stock 9 191,989 109,329
24.1.3 Stores and spares consumed
1,784,861 1,250,686
Opening stock 18,805 15,138
Purchases 47,437 26,567
66,242 41,705
Less: Closing stock 8 36,353 18,805
29,889 22,900
24.2 Cost of sales includes amounts written off during the year in respect of the following:
- Raw materials - 7,060
- Packing materials
- Finished Goods
1,746 4,453
1,190 -
43

25. SELLING AND DISTRIBUTION COSTS
Note
2011 2010
(Rupees in ’000)
Salaries, wages and other benefits 204,768 184,867
Staff retirement gratuity 39.8 3,253 2,973
Provident fund 6,287 5,557
Travelling and conveyance 31,133 33,288
Repairs and maintenance 5,291 4,948
Vehicle running expenses 88,802 78,123
Advertising and sales promotion 1,120,151 1,021,084
Royalty on sale of licensed products 63,999 49,670
Postage, telephone and internet charges 10,846 10,646
Rent, rates and taxes 16,308 13,984
Printing and stationery 3,667 3,568
Subscription and membership 2,479 3,417
Legal and professional 2 92
Freight 503,486 389,724
Electricity 6,808 5,974
Insurance 13,630 14,129
Security service charges 5,477 5,051
Depreciation 4.1.8 22,568 14,815
Amortisation 5.5 5,286 11,086
Other expenses 13,629 6,495
2,127,870 1,859,491
Less: Recovery from related parties 12,677 13,393
2,115,193 1,846,098
26. ADMINISTRATIVE EXPENSES
Salaries, wages and other benefits 78,841 71,151
Staff retirement gratuity 39.8 3,743 3,440
Provident fund 3,150 2,699
Travelling and conveyance 4,902 3,799
Repairs and maintenance 7,747 3,719
Vehicle running expenses 7,357 5,891
Postage, telephone and internet charges 2,260 3,003
Rent, rates and taxes 4,594 5,776
Printing and stationery 1,386 2,410
Subscription and membership 2,033 5,850
Legal and professional 1,603 2,161
Electricity 2,179 2,931
Insurance 6,652 2,729
Security service charges 3,898 3,454
Depreciation 4.1.8 13,767 11,483
Software amortisation 5.5 13,889 10,892
Others 480 1,365
158,481 142,753
Less: Recovery from related parties 732 732
157,749 142,021
27. OTHER OPERATING EXPENSES
Workers’ profits participation fund 20.3 95,821 94,709
Workers’ welfare fund 36,412 35,284
Auditors’ remuneration 27.1 1,057 914
Property, plant and equipment - written off 4.1.1 1,214 111
Donations 27.2 17,343 6,735
Advances to ex-employees written off - 37
Provision for impairment - trade debts 10.3 8,966 17,781
Net exchange loss 3,268 635
164,081 156,206
44

Note
2011 2010
(Rupees in ’000)
27.1 Auditors’ remuneration
Audit fee 480 400
Fee for half yearly review and other certifications 470 425
Out of pocket expenses 107 89
1,057 914
27.2 Donations include the following in which a director is interested:
Name of director Interest Name and address of donee
in donee
Mr Iqbal Ali Lakhani (See note below) Special Olympics Pakistan, 205, 600 450
Sunset Tower, Sunset Boulevard,
DHA, Phase-II, Karachi.
Note: Spouse of Mr Iqbal Ali Lakhani is the Program
Chief Executive of the donee organisation.
Mr Zulfiqar Ali Lakhani (See note below) Zulfiqar & Fatima Foundation, 9 - 13,200 6,000
Khayaban-e-Ghazi, DHA, Phase-
V, Karachi.
Note: Mr Zulfiqar Ali Lakhani, his spouse and children
are trustees of the donee organisation.
Mr Zulfiqar Ali (See note below) Donation made to Swat IDPs 1,500 -
Lakhani, Mr Amin
through Hasanali Karabahi
Mohammed Lakahni
Foundation.
and Mr Iqbal Ali Lakhani
Note: The above mentioned directors are trustees of the Hasanali
Karabahi Foundation.
Mr Iqbal Ali Lakhani (See note below) Pakistan Business Council, M-02 - 150
Mezzanine Floor, Beaumont Plaza,
10 Beaumont Road, Karachi.
Note: Mr Iqbal Ali Lakhani is a common director.
Mr Sultan Ali Lakhani (See note below) Express Helpline Trust, Plot No. 2,023 -
5, Expressway, Off. Korangi
Road, Karachi.
Note: Mr Sultan Ali Lakhani is the trustee of donee organization.
28. OTHER OPERATING INCOME
Income from financial assets / liabilities
Profit on savings and term deposit accounts 45,080 77,275
Profit on a term deposit receipt 3,063 68
Profit on short term investment 295 -
Gain on disposal of short term investments 10,220 -
Liabilities no longer payable written back 3,069 491
Income from non-financial assets
Insurance commission 4,662 3,955
Gain on disposal of property, plant and equipment 4.1.7 3,069 6,042
Sale of scrap 3,115 1,767
Profit on sale of material - 46
72,573 89,644
45

29. FINANCE COST
Note
2011 2010
(Rupees in ’000)
Markup on:
- Long term loan 7 237
- Short term borrowings 622 1,353
Guarantee commission 363 306
Bank commission and other charges 10,941 9,140
11,933 11,036
30. TAXATION
Current
- for the year 472,892 560,800
- for prior years' 1,436 753
Deferred 142,473 51,000
616,801 612,553
30.1 Reconciliation between the average effective tax rate and the applicable tax rate.
2011 2010
Percentage
Applicable tax rate 35.00 35.00
Tax effect of income that is not taxable
in determining tax liability (0.09) -
Tax effect of income assessed under presumptive tax regime (1.51) (0.32)
Tax effect of income tax provision relating to prior year 0.08 0.04
Tax effect of surchage 1.09 -
34.57 34.72
31. EARNINGS PER SHARE
2011 2010
(Rupees in ’000)
Profit after taxation 1,167,380 1,151,639
(Number of shares)
Weighted average number of ordinary shares outstanding
during the year - restated 31,590,865 31,590,865
(Rupees)
Earnings per share - restated 36.95 36.45
31.1 There are no dilutive potential ordinary shares outstanding as at June 30, 2011 and 2010.
46
32. CASH GENERATED FROM OPERATIONS
2011 2010
(Rupees in ’000)
Profit before taxation 1,784,181 1,764,192
Adjustment for non-cash charges and other items:
Depreciation and amortisation expense 197,820 149,323
Gain on sale of property, plant and equipment (3,069) (6,042)
Provision for impairment - trade debts 8,966 17,781
Advances to employees written off - 37
Profit on savings and term deposit accounts (45,080) (77,275)
Profit on a term deposit receipt (3,063) (68)
Profit on disposal of short term investment (10,220) -
Finance costs 11,933 11,036
Net exchange loss 3,268 635
Stocks written off 2,936 11,513
Property, plant and equipment written off 1,214 111
Capital work-in-progress charged off 190 89
Intangibles charged off - 2,761
Working capital changes 32.1 (463,248) (97,618)
1,485,828 1,776,475

32.1 Working capital changes
2011 2010
(Rupees in ’000)
(Increase) in current assets:
Stores and spares (17,548) (3,667)
Stock in trade (1,051,637) (205,318)
Trade debts (13,260) 4,930
Loans and advances 13,543 54,588
Trade deposits and short term prepayments (6,953) 9,752
Other receivables (46,282) 7,949
(1,122,137) (131,766)
Increase in current liabilities:
Trade and other payables 658,889 34,148
(463,248) (97,618)
33. PROPOSED DIVIDEND
The Board of Directors at their meeting held on July 28, 2011 have proposed a cash dividend of Rs 14 per share
(2010: Rs 13.5 per share) for the year ended June 30, 2011, amounting to Rs 442.273 million (2010: Rs 370.851
million), bonus issue of 4.739 million shares (2010: 4.121 million shares) at the rate of three shares for every
twenty shares held (2010: three shares for every twenty shares held) and transfer to general reserve of Rs 680
million (2010: Rs 740 million) subject to the approval of members at the annual general meeting to be held on
September 12, 2011.
34. RELATED PARTY DISCLOSURES
34.1 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:
Nature of transaction
Note
Relationship with
the Company
2011 2010
(Rupees in ’000)
Sale of goods, services provided and
reimbursement of expenses
Century Paper & Board Mills Limited Associate 371 423
Clover Pakistan Limited Associate 15,143 22,479
Merit Packaging Limited Associate 113 82
Rollins Industries (Private) Limited 34.3 Related party 571,202 484,400
Tetley Clover (Private) Limited Associate 6,937 5,084
Cyber Internet Services (Private) Limited Associate 17 6
Hasanali Karabhai Foundation Associate 721 78
SIZA Services (Private) Limited Associate 15 20
Televison Media Network (Private) Limited Associate 99 79
Siza Foods (Private) Limited Associate 21 -
Lakson Business Solution Limited Associate 1 -
594,640 512,651
47

Nature of transaction
Note
Relationship with
the Company
2011 2010
(Rupees in ’000)
Purchase of goods, services received and
reimbursement of expenses
Century Insurance Company Limited Associate 84,470 63,329
Century Paper & Board Mills Limited Associate 270,992 153,032
Century Publication (Private) Limited Associate 10,340 14,437
Clover Pakistan Limited Associate 2,548 3,824
Colgate-Palmolive China Subsidiary of CP-USA 46,646 61,235
Colgate-Palmolive (Vietnam) Limited Subsidiary of CP-USA 68,743 36,817
Colgate-Palmolive Company USA Joint venture company 137,697 70,085
Colgate-Palmolive (Hong Kong) Limited Subsidiary of CP-USA - 438
Colgate-Palmolive (Thailand) Limited Subsidiary of CP-USA 16,389 14,984
Cyber Internet Services (Private) Limited Associate 7,118 8,512
Lakson Business Solution Limited Associate 1,025 1,093
Merit Packaging Limited Associate 95,448 47,106
Princeton Travels (Private) Limited Associate 9,144 6,654
Pakistan Business Council Common Director 750 -
Rollins Industries (Private) Limited 34.3 Related party 2,002,103 1,693,314
SIZA (Private) Limited Associate 24 259
SIZA Foods (Private) Limited Associate 30 2,803
SIZA Services (Private) Limited Associate 6 -
Sybird (Private) Limited Associate 2,335 2,014
Tetley Clover (Private) Limited Associate 706 931
Television Media Network (Private) Limited Associate 43,523 54,752
2,800,037 2,235,619
Rent, allied and other charges
Hasanali Karabhai Foundation Associate 15,064 16,048
SIZA Services (Private) Limited Associate 710 670
Reliance Chemicals (Private) Limited Associate 2,179 2,149
Century Paper & Board Mills Limited Associate 233 -
18,186 18,867
Purchase of short term investments
Lakson Investments Limited Associate 200,000 -
Sale proceeds on redemption of short term investments
Lakson Investments Limited Associate 210,219 -
Profit on short term investments
Lakson Investments Limited Associate 296 -
Royalty charges
Colgate-Palmolive Company USA Joint venture company 63,999 49,670
Sale of property, plant and equipment
SIZA Services (Private) Limited Associate - 150
Clover Pakistan Limited Associate 25 -
Merit Packaging Limited Associate - 260
25 410
48

Nature of transaction
Note
Relationship with
the Company
2011 2010
(Rupees in ’000)
Contribution to staff retirement benefits
Colgate-Palmolive (Pakistan) Limited Employees
Contributory Provident Fund Employees fund 15,834 13,917
Colgate-Palmolive (Pakistan) Limited
Employees Gratuity Fund Employees fund 17,362 16,371
33,196 30,288
Donations
Special Olympics Pakistan 27.2 Related party 600 450
Hasanali Karabhai Foundation 27.2 Associate 1,500 -
Zulfiqar & Fatima Foundation 27.2 Associate 13,200 6,000
Pakistan Business Council 27.2 Common Director - 150
Express Helpline Trust 27.2 Related party 2,023 -
17,323 6,600
Compensation paid to key management personnel
Short-term employee benefits including
compensated absences Key management personnel 27,492 25,055
Post employment benefits --do-- 3,049 2,666
30,541 27,721
Insurance claims received
Century Insurance Company Limited Associate 1,870 10,778
Insurance commission income
Century Insurance Company Limited Associate 4,662 3,955
Purchase of property, plant and equipment
Tetley Clover (Private) Limited Associate 82 6,365
Clover Pakistan Limited Associate 32,287 55
Lakson Investments Limited Associate 65 -
32,434 6,420
Dividend paid
Colgate-Palmolive Company USA Joint venture company 111,255 82,411
Century Insurance Company Limited Associate 136 101
Premier Fashions (Private) Limited Associate 60,006 44,449
SIZA (Private) Limited Associate 29,094 21,551
SIZA Services (Private) Limited Associate 104,732 77,579
SIZA Commodities (Private) Limited Associate 34,264 25,381
Rollins Industries (Private) Limited Related party 15 11
339,502 251,483
34.2 The related party status of outstanding balances as at June 30, 2011 are included in trade debts (note 10 ), other
receivables (note 13), loans and advances (note 11) and trade and other payables (note 20).
34.3 Rollins Industries (Private) Limited is a third party whose manufacturing process is dependent on the company.
35. REMUNERATION OF CHIEF EXECUTIVE, DIRECTOR AND EXECUTIVES
35.1 The aggregate amount charged in these financial statements for remuneration, including certain benefits to the
chief executive, the director and executives of the company, are as follows:
49

Managerial remuneration 5,382 5,382 2,279 2,085 85,711 64,248
Bonus / commission - - 367 335 12,238 12,212
Staff retirement gratuity - - 578 546 1,652 1,398
Provident fund - - 206 188 6,949 5,436
Housing 1,614 1,614 1,026 938 36,592 28,939
Utilities 899 809 - - - -
Motor vehicles 608 528 212 195 9,500 6,855
Others - - 237 218 11,085 10,542
8,503 8,333 4,905 4,505 163,727 129,630
Number of persons 1 1 1 1 77 58
35.2 Chief executive, a working director and the executives of the company are also provided with company maintained
cars.
36. FINANCIAL INSTRUMENTS BY CATEGORY
2011 2010
FINANCIAL ASSETS
(Rupees in ’000)
Loans and receivables at amortised cost
Long term loans 13,528 16,631
Long term security deposits 9,181 6,966
Trade debts 321,073 316,779
Loans and advances 20,659 19,742
Trade deposits 5,780 3,800
Other receivables 8,430 3,812
Profit receivable from banks 13 3,224
Cash and bank balances 618,843 1,088,021
997,507 1,458,975
FINANCIAL LIABILITIES
Financial liabilities at amortised cost
Long term loan - 625
Long term deposits 13,945 6,280
Trade and other payables 1,508,090 769,887
Accrued mark-up 124 58
1,522,159 776,850
37. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
37.1 The company’s activities expose it to certain financial risks. Such financial risks emanate from various factors
that include, but not limited to, market risk, credit risk and liquidity risk. The company’s overall risk management
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the
company’s financial performance. Risks measured and managed by the company are explained in notes 37.1.1,
37.1.2 and 37.1.3 below:
37.1.1 Credit risk and concentration of credit risk
Chief Executive Director
Executives
2011 2010 2011 2010 2011 2010
(Rupees in ’000)
Credit risk represents the accounting loss that would be recognised at the reporting date if counter parties fail
completely to perform as contracted.
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and
financial institutions, as well as credit exposures to customers, including trade receivables and committed
transactions. Out of the total financial assets of Rs 997.507 million (2010: Rs 1,458.975 million), the financial
assets that are subject to credit risk amounted to Rs 997.249 million (2010: Rs 1,458.738 million).
50

The maximum exposure to credit risk as at June 30, 2011, along with comparative is tabulated below:
Financial assets
2011 2010
(Rupees in ’000)
Long term loans 13,528 16,631
Long term security deposits 9,181 6,966
Trade debts 321,073 316,779
Loans and advances 20,659 19,742
Trade deposits 5,780 3,800
Other receivables 8,430 3,812
Profit receivable from banks 13 3,224
Cash and bank balances 618,585 1,087,784
997,249 1,458,738
The bank balances along with credit ratings are tabulated below:
Credit ratings
A-1+ 551,396 1,044,377
A-1 10,324 9,996
A2 1,362 2,825
F1+ 1,127 -
F1 - 2,638
564,209 1,059,836
Due to the company’s long standing business relationships with these counterparties and after giving due
consideration to their strong financial standing, management does not expect non-performance by these counter
parties on their obligations to the company.
For trade receivables, internal risk assessments process determines the credit quality of the customer, taking
into account its financial position, past experience and other factors. Individual risk limits are fixed based on
internal or external ratings in accordance with limits set by the management. The utilisation of credit limits is
regularly monitored. Accordingly the credit risk is minimal and the company also believes that it is not exposed
to major concentration of credit risk.
The breakup of amount due from customers other than related parties as stated in note 10 is presented below:
Due from customers other than related parties
Institutional customers 233,434 220,884
Distributors 117,515 116,747
350,949 337,631
Out of Rs 350.949 million (2010: 337.631 million), the company has provided Rs 30.594 million (2010: 21.628
million) as the amounts being doubtful to be recovered from them.
37.1.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulties in raising funds to meet commitments associated
with financial instruments. The management believes that it is not exposed to any significant level of liquidity
risk.
The management forecasts the liquidity of the company on basis of expected cash flow considering the level
of liquid assets necessary to meet such risk. This involves monitoring balance sheet liquidity ratios against
internal and external regulatory requirements and maintaining debt financing plans.
51

Financial liabilities in accordance with their contractual maturities are presented below :
Interest/mark-up bearing
Maturity Maturity Sub-total
within one after one
year year
Non- interest/mark-up bearing
Maturity Maturity Sub-total
within one after one
year year
Total
Financial liabilities
Long term deposits
Trade and other payables
Accrued mark-up
–
–
–
–
–
–
–
–
June 30, 2011
(Rupees in ’000)
–
–
–
–
-
1,508,090
124
1,508,214
13,945
-
-
13,945
13,945
1,508,090
124
1,522,159
13,945
1,508,090
124
1,522,159
Financial liabilities
Long term loan
Long term deposits
Trade and other payables
Accrued mark-up
625
–
–
–
625
–
–
–
–
–
June 30, 2010
(Rupees in ’000)
625
–
–
–
625
-
-
769,887
58
769,945
-
6,280
-
-
6,280
-
6,280
769,887
58
776,225
625
6,280
769,887
58
776,850
37.1.3 Market Risk
Currency Risk
Foreign currency risk arises mainly where receivables and payables exist due to transactions entered into foreign
currencies. The company primarily has foreign currency exposures in US Dollars (USD).
At June 30, 2011, if the currency had weakened / strengthened by 5% against the USD with all other variables
held constant, pre-tax profit for the year would have been higher / lower by approximately Rs 30 million (2010:
approximately Rs 6 million ). This will mainly result due to foreign exchange gains / losses on translation of USDdenominated
bank balances and bills payables.
Interest rate risk
Interest / mark-up rate risk arises from the possibility that changes in interest / mark-up rates will affect the value
of financial instruments. At June 30, 2011 the company's financial instruments mainly affected due to changes
in the interest rates are balances placed on deposits with banks where changes in interest rates may have impact
on the future profits / cash flows. The effects of changes in interest rates on the future profits arising on the
balances placed on deposits with banks is not considered to be material. The company places its funds in banks
having good credit ratings as also stated in note 37.1.1.
Other price risk
Other price risk is the risk that the fair value or future cash flows from a financial instrument will fluctuate due
to changes in market prices (other than those arising from interest rate risk or currency risk), whether those
changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all
similar financial instruments traded in the market. The Company does not have financial instruments dependent
on market prices.
37.1.4 Fair value of financial instruments
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 June 30, 2011 the net fair value of all financial assets and financial liabilities are estimated to approximate
their carrying values.
52

37.1.5 Capital risk management
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 sell assets to reduce debt.
Consistent with others in the industry, the company manages its capital risk by monitoring its debt levels and
liquid assets and keeping in view future investment requirements and expectation of the shareholders. Debt is
calculated as total borrowings ('long term loan' and 'current maturity of the long term loan' as shown in the balance
sheet). Total capital comprises shareholders’ equity as shown in the balance sheet under 'share capital and
reserves'.
As at June 30, 2011 and 2010, the company had surplus cash reserves to meet its requirements and there was
no net debt position.
38. ENTITY-WIDE INFORMATION
38.1 The company constitutes of a single reportable segment, the principal classes of products of which are Personal
Care, Home Care and Others.
38.2 Information about products
The company's principal classes of products accounted for the following percentages of sales:
2011 2010
Personal Care 24% 23%
Home Care 73% 74%
Others 3% 3%
100% 100%
38.3 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.
38.4 Information about major customers
Information about major customers constitutes information relating to revenues from transactions with any single
external customer which amount to 10 per cent or more of an entity's revenues.
The company does not have transactions with any external customer which amount to 10 percent or more of
the entity's revenues.
39. DEFINED BENEFIT PLAN (Staff Retirement Gratuity)
39.1 The disclosures made in notes 39.2 to 39.14 are based on the information included in the actuarial valuation
report as of June 30, 2011.
39.2 The actuarial valuation of gratuity plan was carried out as at June 30, 2011. The projected unit credit method
using the following significant assumptions was used for this valuation:
2011 2010
Percentage
- Discount rate - per annum compound
14 12
- Expected rate of increase in salaries - per annum
13 11
- Expected rate of return on plan assets - per annum
14 12
39.3 Mortality rate
The rates assumed were based on the EFU 61-66 mortality table.
53

39.4 The amounts recognised in the balance sheet are as follows:
Note
2011 2010
(Rupees in ‘000)
Present value of defined benefit obligation 39.5 135,044 112,924
Fair value of plan assets 39.6 107,068 82,962
Deficit 27,976 29,962
Unrecognised net actuarial losses (22,465) (22,615)
Unrecognised past service cost (5,511) (7,347)
Payable to the gratuity fund - -
39.5 Movement in defined benefit obligation
Present value of defined benefit
obligation as at July 1, 2010 / 2009 112,924 90,954
Current service cost 11,059 9,431
Interest cost 13,551 10,914
Actuarial losses 3,990 3,186
Transfer of an employee 64 -
Benefits paid (6,544) (1,561)
Present value as at June 30 135,044 112,924
39.6 Movement in fair value of plan assets
Fair value as at July 1, 2010 / 2009 82,962 57,899
Expected return on plan assets 9,955 6,948
Actuarial Gain 3,269 3,305
Company contributions 17,362 16,371
Transfer of an employee 64 -
Benefits paid (6,544) (1,561)
Fair value as at June 30 107,068 82,962
39.7 Movement in net liability in the balance sheet is as follows:
Charge for the year 39.8 17,362 16,371
Contributions made during the year to the fund (17,362) (16,371)
Closing balance of net liability - -
39.8 Charge for the year has been allocated as under:
Cost of sales 24.1 10,366 9,958
Selling and distribution costs 25 3,253 2,973
Administrative expenses 26 3,743 3,440
39.9 The following amounts have been charged to income in respect of the gratuity plan:
17,362 16,371
Current service cost 11,059 9,431
Interest cost 13,551 10,914
Past service cost – non vested 1,836 1,837
Actuarial loss charge 871 1,137
Expected return on plan assets (9,955) (6,948)
17,362 16,371
Actual return on plan assets 13,224 10,253
39.10 Unrecognised actuarial losses
54
Net unrecognised actuarial
(gains)/losses at July 1, 2010 / 2009 22,615 23,871
Actuarial loss/(gain) on obligations 3,990 3,186
Actuarial loss/(gain) on assets (3,269) (3,305)
Subtotal 23,336 23,752
Actuarial gain/(loss) recognised (871) (1,137)
Unrecognised actuarial (gain) / loss as at June 30 22,465 22,615

39.11 Amounts for the current period and previous four annual periods of the fair value of plan assets, present value
of the defined benefit obligation and the deficit arising thereon are as follows:
2011
2010 2009
(Rupees in ’000)
2008 2007
As at June 30
Present value of defined
benefit obligation 135,044 112,924 90,954 72,505 62,378
Fair value of plan assets (107,068) (82,962) (57,899) (49,149) (42,781)
Deficit 27,976 29,962 33,055 23,356 19,597
Experience adjustment:
Gain / (loss) on plan assets
(as percentage of plan assets) 3.05 3.98 (8.32) (4.46) 8.28
Loss on obligations
(as a percentage of obligation) 2.95 2.82 5.83 4.75 5.94
39.12 Plan assets comprise of the following:
2011
(Rupees in ’000) Percentage
2010
(Rupees in ’000) Percentage
Shares and units of mutual funds 11,550 10.79 10,447 12.59
Debt 78,679 73.49 2,055 2.48
Cash 16,839 15.72 70,460 84.93
107,068 100.00 82,962 100.00
39.13 The expected return on plan assets is based on the market expectations and depends upon the asset portfolio
of the company, at the beginning of the period, for returns over the entire life of related obligation.
39.14 Expected contribution to post employment benefit plan for the year ending June 30, 2012 is Rs 19.281 million
(2011: Rs 17.362 million).
40. PLANT CAPACITY AND ACTUAL PRODUCTION
2011 2010
(Quantities in tons)
Capacity 208,460 144,460
Production 135,426 117,344
The underutilisation of capacity was due to market constraints.
41. DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorised for issue on July 28, 2011 by the board of directors of the company.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
55

PATTERN OF SHAREHOLDING
Held by the Shareholders as at June 30, 2011
Incorporation Number K-5010 OF 1997-78
CUIN Registration NO.005832
No of
shareholders
338
159
68
84
6
5
1
1
1
1
1
2
1
1
1
1
1
1
1
From
1
101
501
1,001
5,001
10,001
15,001
25,001
30,001
40,001
90,001
105,001
240,001
1,655,001
2,475,001
2,915,001
5,110,001
8,920,001
9,475,001
Shareholdings
100
500
1,000
5,000
10,000
15,000
20,000
30,000
35,000
45,000
95,000
110,000
245,000
1,660,000
2,480,000
2,920,000
5,115,000
8,925,000
9,480,000
To
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Total
shares held
6,413
39,253
43,566
171,757
40,308
57,574
16,102
28,184
32,218
43,180
92,923
214,882
240,764
1,656,185
2,478,352
2,918,779
5,111,580
8,921,591
9,477,252
674
Total
31,590,863
Categories of shareholders
Directors, Chief Executive Officer, and their spouses and minor children
Associated Companies, undertakings and related parties
NIT and ICP
Banks, Development Financial Institutions, Non Banking Financial Institutions
Insurance Companies
Modarabas and Mutual Funds
Shareholders holding 10%
General Public
a. Local
b. Foreign
shares held
357,042
21,102,802
410
8,904
11,621
1,942
23,510,423
549,587
9,570,176
Percentage
1.13
66.80
0.001
0.21
0.04
0.006
74.42
1.74
30.29
Some of the shareholders are reflected in more than one category.
Zulfiqar Ali Lakhani
Chief Executive
56

DETAILS OF PATTERN OF SHAREHOLDING
AS PER REQUIREMENTS OF CODE OF
CORPORATE GOVERNANCE
a) ASSOCIATED COMPANIES, UNDERTAKINGS AND RELATED PARTIES SHARES HELD
1.
2.
3.
4.
5.
6.
7.
8.
M/s. SIZA (Pvt) Limited 2,478,352
M/s. SIZA Services (Pvt) Limited 8,921,591
M/s. SIZA Commodities (Pvt) Limited 2,918,779
M/s. Premier Fashions (Pvt) Limited 5,111,580
M/s. Century Insurance Company Limited 11,621
Mrs. Gulbanoo Lakhani 1,656,185
Mr. Sultan Ali Lakhani 518
Mrs. Shaista Sultan Ali Lakhani 354
Mr. Babar Ali Lakhani 1,661
9.
10. Mr. Bilal Ali Lakhani 623
11. Mr. Danish Ali Lakhani 380
12. Miss Sanam Iqbal Lakhani 326
13. Mrs. Natasha Lakhani 126
14. Miss Anushka Zulfiqar Lakhani 288
15. Miss Anika Amin Lakhani 418
b) NIT AND ICP
1. National Bank of Pakistan, Trustee Deptt. 257
2. Investment Corporation of Pakistan 153
c) DIRECTORS, CEO AND THEIR SPOUSES AND MINOR CHILDREN
1. Mr. Iqbal Ali Lakhani Chairman/Director 3,556
2. Mr. Zulfiqar Ali Lakhani Director/Chief Executive 1,032
3. Mr. Amin Mohammed Lakhani Director 3,466
4. Mr. Tasleemuddin Ahmed Batlay Director 1,290
5. Mr. A. Aziz H. Ebrahim Director 106,322
6. Mr. Jerome Graham Webb Nominee of Colgate-Palmolive Company, USA -
7. Mr. Derrick Samuel Nominee of Colgate-Palmolive Company, USA -
8. Mrs. Ronak Iqbal Lakhani W/o. Iqbal Ali Lakhani 240,764
9. Mrs. Fatima Lakhani W/o. Zulfiqar Ali Lakhani 205
10. Mrs. Saira Amin Lakhani W/o. Amin Mohammed Lakhani 407
d) EXECUTIVES 28,184
e) PUBLIC SECTOR COMPANIES AND CORPORATIONS NIL
f) BANKS, DEVELOPMENT FINANCIAL INSTITUTIONS,
NON-BANKING FINANCIAL INSTITUTIONS,
INSURANCE COMPANIES,
MODARABAS AND MUTUAL FUNDS: 10,846
[Other than those reported at a(5)]
g) SHAREHOLDERS HOLDING 10% OR MORE
M/s. Colgate-Palmolive Co., USA. 9,477,252
[Other than those reported at a(2)& a(4)]
h) INDIVIDUALS AND OTHER THAN THOSE
MENTIONED ABOVE 614,327
31,590,863
57

OPERATING AND FINANCIAL HIGHLIGHTS
BALANCE SHEET
2010-2011
2009-2010
2008-2009 2007-2008
(Rupees in ‘000)
2006-2007
2005-2006
Property,plant and equipment
Intangible assets
Long term loans and security deposits
2,680,784
18,775
22,709
2,722,268
1,873,118
32,155
23,597
1,928,870
1,168,256
42,074
24,935
1,235,265
963,240
14,715
21,513
999,468
864,837
17,400
17,706
899,943
739,281
23,200
11,534
774,015
Current assets
Current liabilities
TOTAL ASSETS EMPLOYED
3,687,865
1,668,040
2,019,825
4,742,093
2,877,700
1,011,144
1,866,556
3,795,426
2,705,155
1,072,926
1,632,229
2,867,494
2,138,856
834,290
1,304,566
2,304,034
1,750,582
818,450
932,132
1,832,075
1,337,476
699,948
637,528
1,411,543
REPRESENTED BY
Equity
Paid-up capital
Reserves
Surplus on revaluation of investments
315,909
4,057,766
4,373,675
274,704
3,302,442
3,577,146
238,873
2,461,338
2,700,211
191,098
1,950,245
201
2,141,544
152,879
1,553,776
455
1,707,110
122,303
1,175,286
1,367
1,298,956
Non-Current liabilities
Liabilities against assets subject to
finance leases
Long term loans,deposits and
deferred taxation
368,418
368,418
4,742,093
218,280
218,280
3,795,426
167,283
167,283
2,867,494
162,490
162,490
2,304,034
124,965
124,965
1,832,075
1,085
111,502
112,587
1,411,543
PROFIT AND LOSS ACCOUNT
Turnover
18,132,057
14,583,936
13,994,706
8,976,538
7,445,820
6,286,355
Less : Sales tax & sed
: Trade discounts
Net turnover
2,994,755
986,882
3,981,637
14,150,420
2,260,329
794,297
3,054,626
11,529,310
2,148,237
581,792
2,730,029
11,264,677
1,323,402
461,773
1,785,175
7,191,363
1,036,767
424,373
1,461,140
5,984,680
878,335
357,067
1,235,402
5,050,953
Cost of sales
Gross profit
9,989,856
4,160,564
7,699,401
3,829,909
8,482,756
2,781,921
5,035,128
2,156,235
4,054,746
1,929,934
3,390,485
1,660,468
Administrative,selling and distribution cost
Other operating expenses
Other operating income
Profit from operations
Finance costs
Profit before taxation
Taxation
Profit after taxation
(2,272,942)
(164,081)
72,573
(2,364,450)
1,796,114
11,933
1,784,181
616,801
1,167,380
(1,988,119)
(156,206)
89,644
(2,054,681)
1,775,228
11,036
1,764,192
612,553
1,151,639
(1,527,738)
(112,508)
53,297
(1,586,949)
1,194,972
48,867
1,146,105
396,139
749,966
(1,114,421 )
(119,189 )
118,259
(1,115,351 )
1,040,884
19,875
1,021,009
341,716
679,293
(1,018,144)
(61,795)
61,411
(1,018,528)
911,406
14,801
896,605
291,854
604,751
(853,001)
(59,527)
34,702
(877,826)
782,642
13,309
769,333
270,478
498,855
58

OPERATING AND FINANCIAL
HIGHLIGHTS-CONTINUED
FINANCIAL RATIOS
2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006
RATE OF RETURN
Pre tax return on equity
Post tax return on equity
Return on average capital employed
Interest cover
%
%
%
times
41
27
27
151
49
32
35
161
42
28
29
24
48
32
33
52
53
35
37
62
59
38
40
59
PROFITABILITY
Gross profit margin - restated
Operating profit to sales - restated
Pre tax profit to sales - restated
Post tax profit to sales - restated
%
%
%
%
29
13
13
8
33
15
15
10
25
11
10
7
30
14
14
9
32
15
15
10
33
15
15
10
LIQUIDITY
Current Ratio
Quick ratio
ratio
ratio
2.2:1
0.8:0
2.8:1
1.5:1
2.5:1
1.5:1
2.6:1
1.3:1
2.1:1
1.2:1
1.9:1
1.0:1
FINANCIAL GEARING
Debt equity ratio
Gearing ratio
ratio
times
0:100
0.47
0:100
0.34
0:100
0.46
0:100
0.47
1:99
0.55
1:99
0.63
CAPITAL EFFICIENCY
Debtors turnover
Inventory turnover
Total assets turnover
Property, plant and equipment turnover
days
days
times
times
8
67
2
5
10
58
2
6
11
46
3
9
9
65
2
7
9
63
2
7
8
62
2
7
INVESTMENT MEASURES PER
ORDINARY SHARE
Earnings per share - restated
Dividend cash (including proposed)
Dividend payout (including bonus)
Dividend yield
Price earning ratio - restated
Break-up value - restated
Market value - low
Market value - high
Market value - year end
Market capitalization -restated
Dividend - Cash
Dividend - Bonus shares
Rs
Rs
%
%
times
Rs
Rs
Rs
Rs
Rs in Mn
%
%
36.95
14
42
2
20.82
138.45
556.01
1,008.18
769.25
24,301
140
15
36.45
13.50
36
3
16.09
113.23
277.26
658.99
586.40
18,525
135
15
23.74
11.50
41
5
11.79
85.47
261.74
689.90
280.00
8,845
115
15
21.50
10.00
35
2
29.06
67.79
430
825
624.79
19,738
100
25
19.14
16.00
47
4
24.55
54.04
325.00
480.00
470.00
14,848
160
25
15.79
16.00
57
5
21.91
41.12
175.00
371.15
346.00
10,930
160
25
59

FORM OF PROXY
I/We
of
a member of COLGATE-PALMOLIVE (PAKISTAN) LIMITED
hereby appoint
of
or failing him
of
who is/are also member/s of Colgate-Palmolive (Pakistan) Limited to act as my/our proxy and to vote
for me/us and on my/our behalf at the Annual General Meeting of the shareholders of the
Company to be held on the 12th day of September 2011 and at any adjournment thereof.
Signed this day of 2011.
Folio
No.
CDC Participant
ID No.
CDC Account/
Sub-Account No.
No. of
Shares held
Signature over
Revenue Stamp
Witness 1
Signature
Name
CNIC No.
Address
Witness 2
Signature
Name
CNIC No.
Address
Notes: 1. The proxy must be a member of the Company.
2. The signature must tally with the specimen signature/s registered with the Company.
3. If a proxy is granted by a member who has deposited his/her shares in Central
Depository Company of Pakistan Limited, the proxy must be accompanied with
participant’s ID number and CDC account/sub-account number alongwith attested
photocopies of Computerized National Identity Card (CNIC) or the Passport of the
beneficial owner. Representatives of corporate members should bring the usual
documents required for such purpose.
4. The instrument of Proxy properly completed should be deposited at the Registered
Office of the Company not less that 48 hours before the time of the meeting.

Fold Here
Fold Here
AFFIX
CORRECT
POSTAGE
Company Secretary
COLGATE-PALMOLIVE (PAKISTAN) LIMITED
Lakson Square, Building No. 2,
Sarwar Shaheed Road,
Karachi.74200.
Phone: 35698000
Fold Here
Fold Here
Fold Here
Fold Here