Half Yearly Report December 2011 - Colgate Palmolive Pakistan

CONTENTS
Page
COMPANY INFORMATION 2
DIRECTORS’ REVIEW 3-4
AUDITORS’ REPORT TO THE MEMBERS
ON REVIEW OF INTERIM FINANCIAL INFORMATION 5
CONDENSED INTERIM BALANCE SHEET 6
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT 7
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 8
CONDENSED INTERIM CASH FLOW STATEMENT 9
NOTES TO AND FORMING PART OF THE CONDENSED
INTERIM FINANCIAL STATEMENTS 10-18
1

COMPANY INFORMATION
BOARD OF DIRECTORS
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
Jerome Graham Webb
Derrick Samuel
A. Aziz H. Ebrahim
Zulfiqar Ali Lakhani
ADVISOR
Sultan Ali Lakhani
AUDIT COMMITTEE
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
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.
Chairman
Chief Executive
Chairman
FACTORIES
G-6, S.I.T.E., Kotri
District Jamshoro (Sindh)
217, Sundar Industrial Estate
Raiwind Road, Lahore
WEBSITE
2
www.colgate.com.pk

DIRECTORS’ REVIEW
The Directors are pleased to present the financial statements of the Company for the half year ended
December 31, 2011.
Financial results of the Company are as under:
FINANCIAL RESULTS
July- December
2011
July- December
2010
Increase/
Decrease
Rupees in million Rupees in million %
Turnover 11,095 8,355 +32.8
Gross Profit 2,5471,879 +35.6
- as % age to net sale 28.5% 28.6% -10 bps
Selling and distribution costs 1,248 1,001 +24.7
- as % age to net sale 14.0% 15.3% -130 bps
Administrative expenses 89 76 +17.6
- as % age to net sale 1.0% 1.2% -20 bps
Profit from Operations 1,136 759 +49.7
NPAT 753 496 +51.7
Earning per share (restated) Rs. 20.73 13.67 +51.6
The Company's growth momentum continued during the period ended December 31, 2011. Turnover
grew by 32.8%. This growth is on the back of significant volume growth, where all major brands of
the company contributed.
During the period, the company's absolute gross profit increased by 35.6%, although the gross profit
% remained stable at 28.5%. Our ongoing cost saving initiatives with our timely SPIs enabled
offsetting escalating input costs, and helped in maintaining the gross profit percentage.
The selling and distribution cost increased by 24.7%, largely due to the increased advertising which
was vital to support the growing trend in company's revenues. A very competitive and active year
from competition also meant that advertising had to be increased to defend our own business.
However, it is noteworthy that in terms of percentage to sales, selling and distribution cost has
decreased by 130 bps.
This half year result shows an increase in the net profit after tax (NPAT) by 51.7%. Earning per Share
has also increased by 51.6 % to Rs 20.73 per share as compared to Rs.13.67 per share for the
same period last year.
3

FUTURE PROSPECTS
Overall the business environment remains challenging due to prevailing political uncertainty, energy
crisis and security situation. The competitive environment has been the most active in recent times
and is expected to continue for the year ahead. However, the company is focused to reduce its cost
and expand its volume base by investing in plant & machinery as well as in the brands. The
management of your company is committed to maintain the growth trend in future by implementing
aggressive marketing plans across all categories.
ACKNOWLEDGMENTS
The Company wishes to acknowledge and thank its customers, shareholders, suppliers, bankers
and all other stakeholders for their continued support & cooperation.
On behalf of Board of Directors
Karachi : January 27, 2012
IQBAL ALI LAKHANI
Chairman
4

A.F.FERGUSON & CO.
AUDITORS' REPORT TO THE MEMBERS
ON REVIEW OF INTERIM FINANCIAL INFORMATION
Introduction
We have reviewed the annexed condensed interim balance sheet of Colgate-Palmolive
(Pakistan) Limited as at December 31, 2011 and the related condensed interim profit and
loss account, condensed interim changes in equity, condensed interim cash flow statement
and the notes forming part thereof for the six months period then ended (here-in-after
referred to as the interim financial information). Management is responsible for the
preparation and presentation of the interim financial information in accordance with
approved accounting standards as applicable in Pakistan for interim financial reporting.
Our responsibility is to express a conclusion on this interim financial information based
on our review. The figures included in the condensed interim profit and loss account for
the quarters ended December 31, 2011 and 2010 and the notes forming part thereof have
not been reviewed as we are required to review only the cumulative figures for the six
months period ended December 31, 2011.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements
2410, 'Review of Interim Financial Information Performed by the Independent Auditor of
the Entity'. A review of interim financial information consists of making inquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing and consequently does not enable
us to obtain assurance that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
A member firm of
A. F. Ferguson & Co
Chartered Accountants
State Life Building No. 1-C
I.I.Chundrigar Road, P.O.Box 4716
Karachi-74000, Pakistan
Telephone: (021) 32426682-6 / 32426711-5
Facsimile: (021) 32415007 / 32427938
Based on our review, nothing has come to our attention that causes us to believe that the
annexed interim financial information as of and for the six months period ended December
31, 2011 is not prepared, in all material respects, in accordance with approved accounting
standards as applicable in Pakistan for interim financial reporting.
Chartered Accountants
Karachi, January 27, 2012
5

CONDENSED INTERIM BALANCE SHEET (Unaudited - Note 2)
As at December 31, 2011
Note December 31,
2011
June 30,
2011
(Rupees in ’000)
ASSETS
NON-CURRENT ASSETS
Long term loans 10,106 13,528
Long term security deposits 9,181 9,181
Property, plant and equipment
Intangible assets
4
5
2,769,906
13,154
2,680,784
18,775
2,802,3472,722,268
CURRENT ASSETS
Trade debts 424,325 321,073
Loans and advances 6 205,125 92,674
Trade deposits and short term prepayments 749,731 22,925
Other receivables 8 19,945 50,473
Profit receivable from banks 31 13
Taxation 222,480 174,573
Cash and bank balances 654,860 618,843
Stores and spares
Stock in trade
50,010
2,153,983
36,353
2,370,938
3,780,490 3,687,865
6,582,8376,410,133
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital
40,000,000 ordinary shares of Rs 10 each 400,000 400,000
Issued, subscribed and paid-up share capital
Reserves
9 363,295
4,321,341
315,909
4,057,766
4,684,636 4,373,675
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation 446,257354,473
Long term deposits 14,42713,945
460,684 368,418
CURRENT LIABILITIES
Trade and other payables
Accrued markup
10 1,437,156
361
1,667,916
124
1,437,517 1,668,040
1,898,201 2,036,458
CONTINGENCIES AND COMMITMENTS 11
6,582,837 6,410,133
The annexed notes 1 to 15 form an integral part of this condensed interim financial report.
6
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (Unaudited - Note2)
For the Quarter and Six months period ended December 31, 2011
Note
Turnover 5,738,568 4,456,018 11,094,961 8,354,987
Sales tax (832,442) (672,633) (1,618,707) (1,266,509)
Special excise duty - (34,947) - (65,777)
Trade discounts (263,744) (237,129) (545,146) (460,100)
Net turnover 4,642,382 3,511,309 8,931,108 6,562,601
Cost of sales (3,343,535) (2,496,156) (6,384,305) (4,683,976)
Gross profit 1,298,847 1,015,153 2,546,803 1,878,625
Selling and distribution costs (657,088) (511,601) (1,248,374) (1,001,143)
Administrative expenses (45,614) (39,497) (88,813) (75,495)
Other operating expenses (50,262) (40,334) (97,810) (72,803)
Other operating income 10,722 11,043 23,706 29,446
Profit from operations 556,605 434,764 1,135,512 758,630
Finance costs (3,778) (2,792) (10,174) (5,453)
Profit before taxation 552,827 431,972 1,125,338 753,177
Taxation:
- Current - for the period 80,320 155,000 280,320 271,000
- for prior years - (51) - (191)
- Deferred 93,843 (9,174) 91,784 (14,174)
(174,163) (145,775) (372,104) (256,635)
Profit after taxation 378,664 286,197 753,234 496,542
Other comprehensive income for the period
Quarter ended
December 31,
2011
Quarter ended
December 31,
2010
(Rupees in ’000)
Six months
period ended
December 31,
2011
Unrealised gain on investments
classified as 'available for sale - 2,825 - 4,210
Total comprehensive income for the period 378,664 289,022 753,234 500,752
Earnings per share (Rupees) - restated 12 10.42 7.88 20.73 13.67
The annexed notes 1 to 15 form an integral part of this condensed interim financial report.
Six months
period ended
December 31,
2010
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
7

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited - Note 2)
For the Six months period ended December 31, 2011
Balance as at July 1, 2010
Comprehensive income for the period
Net profit for the six months period ended
December 31, 2010
Other comprehensive income
Unrealised gain on investments classified
as available for sale
Transfer to general reserve
Total other comprehensive income
Total comprehensive income for the six months
period ended December 31, 2010
Transactions with owners
Final dividend for the year ended June 30, 2010
(Rs 13.50 per share)
Bonus shares issued at the rate of three share
for every twenty shares held
Issued,
subscribed
and paid up
share capital
274,704
-
-
-
-
-
-
41,205
Capital
reserveshare
premium
13,456
-
-
-
-
-
-
-
Revenue reserves Surplus on
General
Unappropriated
of
revaluation
reserve
profit investments
(Rupees in ‘000)
2,130,000 1,158,986) -
-
-
740,000
740,000
740,000
-
-
496,542)
-
(740,000)
(740,000)
(243,458)
(370,850)
(41,205)
-
4,210
-
4,210
4,210
-
-
Total
3,577,146)
496,542)
4,210)
-
4,210)
500,752)
(370,850)
-
Total transactions with owners
41,205
-
-
(412,055)
-
(370,850)
Balance as at December 31, 2010
315,909
13,456
2,870,000
503,473)
4,210
3,707,048)
Balance as at July 1, 2011
Comprehensive income for the period
Net profit for the six months period ended
December 31, 2011
Other comprehensive income
315,909
-
13,456
-
2,870,000
-
1,174,310)
753,234)
-
-
4,373,675)
753,234)
Transfer to general reserve
-
-
680,000
(680,000)
-
-
Total other comprehensive income
-
-
680,000
(680,000)
-
-
Total comprehensive income for the six months
period ended December 31, 2011
Transactions with owners
-
-
680,000
73,234)
-
753,234)
Final dividend for the year ended June 30, 2011
(Rs 14 per share)
Bonus shares issued at the rate of three share
for every twenty shares held
-
47,386
-
-
-
-
(442,273)
(47,386)
-
-
(442,273)
-
Total transactions with owners
47,386
-
-
(489,659)
-
(442,273)
Balance as at December 31, 2011
363,295
13,456
3,550,000
757,885)
-
4,684,636)
The annexed notes 1 to 15 form an integral part of this condensed interim financial report.
8
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

CONDENSED INTERIM CASH FLOW STATEMENT (Unaudited - Note 2)
For the Six months period ended December 31, 2011
Note
Six months
period ended
December 31,
2011
(Rupees in ‘000)
Six months
period ended
December 31,
2010
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 13 1,035,877 709,736
Finance costs paid (9,937) (5,399)
Taxes paid (328,227) (265,910)
Long term loans 4,626 (1,917)
Long term security deposits - (2,295)
Long term deposits 482 150
Net cash inflows from operating activities 702,821 434,365
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure (241,137) (358,548)
Purchase of Intangible assets (2,188) -
Sale proceeds on disposal of property, plant and equipment 4,077 4,535
Profit on bank deposits received 14,016 26,483
Purchase of short term investments - (200,000)
Profit on short term investments received 61 89
Sale proceeds on disposal of short term investments - 101,107
Net cash outflows due to investing activities (225,171) (426,334)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term loan - (625)
Dividend paid (441,633) (370,392)
Net cash outflows due to financing activities (441,633) (371,017)
Net increase / (decrease) in cash and cash equivalents 36,017 (362,986)
Cash and cash equivalents at the beginning of the period 618,843 1,088,021
Cash and cash equivalents at the end of the period 654,860 725,035
The annexed notes 1 to 15 form an integral part of this condensed interim financial report.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
9

NOTES TO AND FORMING PART OF THE
CONDENSED INTERIM FINANCIAL REPORT (Unaudited - Note 2)
For the Six months period ended December 31, 2011
1. STATUS AND NATURE OF BUSINESS
Colgate-Palmolive (Pakistan) Limited (“the company”) was initially incorporated in
Pakistan on December 5, 1977 as a public limited company with the name of National
Detergents Limited. The name of the company was changed to Colgate-Palmolive
(Pakistan) Limited on March 28, 1990 when the company entered into a Participation
Agreement with Colgate-Palmolive Company, USA. The company is listed on the
Karachi and Lahore Stock Exchanges. The registered office of the company is situated
at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi.
The company is mainly engaged in the manufacture and sale of detergents, personal
care and other related products.
2. STATEMENT OF COMPLIANCE
2.1 This condensed interim financial report of the company for the six months period
ended December 31, 2011 has been prepared in accordance with the requirements
of the International Accounting Standard 34 - 'Interim Financial Reporting' and provisions
of and directives issued under the Companies Ordinance, 1984 (the Ordinance). In
case where requirements differ, the provisions of or directives issued under the
Ordinance have been followed.
2.2 This condensed interim financial report comprises of the condensed interim balance
sheet as at December 31, 2011 and the condensed interim profit and loss account,
condensed interim statement of changes in equity and the condensed interim cash
flow statement for the six months period then ended which have been subjected to
a review but not audited. This condensed interim financial report also includes the
condensed interim profit and loss account for the quarter ended December 31, 2011
which is not subject to a review.
2.3 The comparative condensed balance sheet, presented in this condensed interim
financial report, as at June 30, 2011 has been extracted from the annual audited
financial statements of the company for the year ended June 30, 2011 whereas the
comparative condensed interim profit and loss account, condensed interim statement
of changes in equity and condensed interim cash flow statement for the six months
period ended December 31, 2010 were subjected to a review but not audited. The
comparative condensed profit and loss account for the quarter ended December 31,
2010 included in this condensed interim financial report was not subject to a review.
2.4 Standards, amendments to published approved accounting standards and interpretations
effective from July 1, 2011:
10
There are certain new standards, amendments and International Financial Reporting
Interpretations Committee (IFRIC) interpretations that became effective during the

period and are mandatory for accounting periods beginning on or after July 1, 2011
but are considered not to be relevant or have any significant effect on the company's
operations and are, therefore, not disclosed in this condensed interim financial report.
2.5 Standards, amendments to published approved accounting standards and interpretations
as adopted in Pakistan, that are not yet effective:
There are other amendments to the standards and new interpretations that are
mandatory for accounting periods beginning on or after July 1, 2012 but are considered
not to be relevant or do not have any significant effect on company's operations and
are, therefore, not detailed in this condensed interim financial report.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation
of this condensed interim financial report are the same as those applied in the
preparation of the financial statements for the year ended June 30, 2011.
4. PROPERTY, PLANT AND EQUIPMENT
December 31,
2011
(Rupees in ‘000)
June 30,
2011
Operating fixed assets - notes 4.1 and 4.2 2,646,766 2,088,144
Capital work-in-progress - note 4.3 123,140 592,640
2,769,906 2,680,784
4.1 Additions - operating fixed assets (at cost)
Six months
period ended
December 31,
Six months
period ended
December 31,
2011
2010
(Rupees in ‘000)
Leasehold land - 30,664
Factory building on leasehold land 4,630 207
Plant and machinery 556,661 7,739
Electric fittings and installation 15,694 310
Furniture and fixtures 8,058 696
Tools and equipment 90,327 3,214
Vehicles 21,271 6,205
Computers and accessories 12,091 3,337
Office equipment 1,905 986
710,637 53,358
4.1.1 Additions include transfers from capital work-in-progress.
11

4.2 Disposals - operating fixed assets (at cost)
Six months
period ended
December 31,
Six months
period ended
December 31,
2011
2010
(Rupees in ‘000)
Furniture and fixtures - 1,000
Vehicles 4,550 5,302
Plant and machinery 2,415 -
Computers and accessories 594 382
Office equipment 275 508
7,834 7,192
4.3 Additions - capital work in progress (at cost)
Factory building on leasehold land 23,657 61,924
Plant and machinery 91,186 193,852
Electric fittings and installation 5,864 24,340
Tools and equipment 3,151 5,818
Vehicle - 406
Computer and accessories - 915
Furniture and fixtures 6,622 16,587
Office equipment 1,094 376
131,574 304,218
4.4 Included in fixed assets are few items having cost of Rs 26.630 million (June 30, 2011:
Rs 29.045 million) held by related parties and of Rs 43.051 million (June 30, 2011:
Rs 42.375 million) held by third parties for manufacturing certain products for the
company. These fixed assets are free of lien and the company has full rights of
repossession of these assets.
5. INTANGIBLE ASSETS
5.1 Additions - intangibles (at cost)
Computer Software 2,188 -
12

6. LOANS AND ADVANCES
December 31,
2011
(Rupees in ‘000)
June 30,
2011
Considered good
Current portion of long term loans
- due from executives 2,304 3,017
- due from other employees 7,252 7,743
9,556 10,760
Advances
- to employees - note 6.1 10,474 9,899
- to contractors and suppliers - note 6.2 101,394 72,015
111,868 81,914
Margin against letter of credit 83,701 -
205,125 92,674
6.1 Advances to employees are provided to meet business expenses and are settled as
and when the expenses are incurred.
6.2 Included in advances to contractors and suppliers is an amount of Rs 6.019 million
(June 30, 2011: Rs 2.996 million) given to related parties.
7. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 4,775 5,780
Prepayments 44,956 17,145
49,731 22,925
8. OTHER RECEIVABLES
Receivable from related parties - note 8.1 9,364 7,930
Special excise duty claimable 9,421 -
Claims receivable from an insurance company 675 500
Sales tax refundable - 41,439
Others 485 604
19,945 50,473
8.1 Other receivables include the following amounts due from related parties:
Century Insurance Company Limited - 134
Clover Pakistan Limited 190 742
Tetley Clover (Private) Limited 3,815 7,054
Employee gratuity fund 5,359 -
9,364 7,930
13

9. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL
December 31, June 30,
2011
2011
(Number of shares)
December 31, June 30,
2011
2011
(Rupees in ‘000)
5,882,353 5,882,353 Ordinary shares of 58,824 58,824
Rs. 10 each fully paid
in cash
30,447,141 25,708,512 Ordinary shares of 304,471 257,085
Rs. 10 each issued
as fully paid bonus
shares
36,329,494 31,590,865 363,295 315,909
10. TRADE AND OTHER PAYABLES
Trade creditors - note 10.1 499,101 485,428
Accrued liabilities - note 10.2 363,757 332,395
Bills payable 213,758 596,214
Amounts due to distributors 25,329 19,801
Special excise duty payable - 7,792
Sales tax payable 92,308 -
Royalty payable to an associated undertaking 97,962 63,999
Workers’ profits participation fund 59,267 95,821
Workers’ welfare fund 59,550 36,412
Retention money payable 7,898 9,545
Unclaimed dividend 3,245 2,605
Others - note 10.3 14,981 17,904
1,437,156 1,667,916
10.1 This includes Rs 57.033 million (June 30, 2011: Rs 36.359 million) payable to related
parties.
10.2 This includes Rs 2.098 million (June 30, 2011: Rs 1.575 million) payable to related
parties.
10.3 This includes Rs 0.312 million (June 30, 2011: Rs 3.696 million) payable to related
parties.
14

11. CONTINGENCIES AND COMMITMENTS
11.1 Contingencies
11.1.1 As a result of a recovery suit of Rs 31.455 million alongwith interest at the rate of
thirteen percent (13%) per annum filed by the Octroi Contractor against the
Government of Sindh, Union Council Bulari and Kotri Association of Trade and
Industries (KATI) in the Civil Court, the Honorable Senior Judge issued a decree
of Rs 7.336 million in favour of Octroi Contractor. KATI had filed an appeal in the
High Court of Sindh, whereas, the Octroi Contractor had also filed an appeal
requesting to enhance the amount of decree. Subsequently, the case was transferred
to the Additional District Judge Kotri by the High Court of Sindh. The District Judge
allowed the appeal in favour of KATI and remanded the case to Senior Civil Judge
Kotri for adjudication. The relevant case has been dismissed by the Senior Civil
Judge in favour of KATI. Subsequently, the Octroi contractor has filed an appeal
in the District Court Jamshoro against the dismissal. If the contractor's appeal is
decided in its favour, then the company, being a member of KATI, would be required
to pay its share as determined by the Court out of the total decree amount. The
management of the company, based on the advice of its legal counsel handling
the subject matter, is confident that the appeal will be decided in favour of KATI.
Accordingly, no provision has been made in the financial statements on this account.
11.1.2 Cases have been filed against the company by some employees claiming
approximately Rs 1.641 million (June 30, 2011: Rs 1.541 million) in aggregate.
Provision has not been made in these financial statements for the aforementioned
amounts as the management of the company, based on the advice of its legal
counsel handling the subject cases, is of the opinion that matters shall be decided
in the company's favour.
11.1.3 Post dated cheques have been issued to custom authorities as a security in respect
of duties and taxes amounting to Rs 331.314 million (June 30, 2011: Rs 382.324
million) payable at the time of exbonding of imported goods. In the event the goods
are not cleared from custom warehouse within the prescribed time period, cheques
issued as security shall be encashable.
11.1.4 Contingent liabilities in respect of indemnities given to financial institutions for
guarantees issued by them on behalf of the company in the normal course of
business aggregate Rs 21 million (June 30, 2011: Rs 21 million).
11.2 Commitments
11.2.1 Commitments in respect of capital expenditure amount to Rs 42.492 million (June
30, 2011: Rs 101.898 million).
11.2.2 Outstanding letters of credit and acceptances amount to Rs 773.701 million (June
30, 2011: Rs 759.004 million).
11.2.3 Outstanding duties leviable on clearing of stocks amount to Rs 9.036 million (June
30, 2011: Rs 16.027 million).
15

12. EARNINGS PER SHARE
Quarter ended
December 31,
2011
Quarter ended
December 31,
2010
(Rupees in ’000)
Six months
period ended
December 31,
2011
Six months
period ended
December 31,
2010
Profit after taxation 378,664 286,197 753,234 496,542
(Number of shares)
Weighted average number of
ordinary shares outstanding
during the period (restated) 36,329,494 36,329,494 36,329,494 36,329,494
(Rupees)
Earnings per share (restated) 10.42 7.88 20.73 13.67
12.1 There were no dilutive potential ordinary shares outstanding as at December 31,
2011.
13. CASH GENERATED FROM OPERATIONS
Six months
period ended
December 31,
2011
(Rupees in ‘000)
Six months
period ended
December 31,
2010
Profit before taxation 1,125,338 753,177
Adjustment for non-cash charges and other items:
Depreciation and amortisation expense 157,060 90,188
Gain on disposal of property, plant and equipment (1,907) (1,702)
Property, plant and equipment written off 594 233
Provision for doubtful debts 75 2,386
Profit on bank deposits (14,034) (23,273)
Profit on short term investment (61) (89)
Profit on disposal of short term investments - (1,107)
Finance costs 10,174 5,453
Exchange loss 3,327 2,929
Working capital changes - note 13.1 (244,689) (118,459)
1,035,877 709,736
16

13.1 Working capital changes
Six months
period ended
December 31,
2011
(Rupees in ‘000)
Six months
period ended
December 31,
2010
(Increase) / decrease in current assets:
Stores and spares (13,657) (8,265)
Stock in trade 216,955 (145,243)
Trade debts (103,327) (55,706)
Loans and advances (113,655) (84,113)
Trade deposits and short term prepayments (26,806) (38,797)
Other receivables 30,528 (10,459)
(9,962) (342,583)
(Decrease) / increase in current liabilities:
Trade and other payables (234,727) 224,124
(244,689) (118,459)
14. TRANSACTIONS WITH RELATED PARTIES
Relationship
with the
Company
Six months
period ended
December 31,
Six months
period ended
December 31,
2011
2010
(Rupees in ‘000)
Sale of goods, services and reimbursement
of expenses Associates /
Related Party 398,235 225,083
Purchase of goods and services received
and reimbursement of expenses Associates /
Related Party 1,673,694 1,325,073
Purchase of short term investments Associates - 200,000
Sale proceeds on redemption of short
term investments Associates - 101,107
Profit on short term investments Associates 61 -
Rent, allied and other charges Associates /
Related Party 11,500 11,036
Royalty charges Associates 40,363 31,701
Insurance claims receivedAssociates 1,595 659
Insurance commission income Associates 4,679 2,390
Purchase of property, plant and equipment Associates 2,042 31,522
Sale of property, plant and equipment Associates 1,200 -
Contribution to staff retirement benefits
Retirement
benefit fund18,236 16,088
Key management personnel compensation Directors 17,973 15,994
Donation Associates 9,250 10,459
Dividend paid Associates /
Related Party 404,887 339,502
17

Relationship
with the
Company
December 31, June 30,
2011
2011
(Rupees in ‘000)
Receivable against sale of goods Associates 50,178 718
Loans and advances Associates Refer note 6
Other receivables from related parties Associates Refer note 8
Royalty payable to associated undertaking Associates Refer note 10
Due from gratuity fundRetirement benefit fundRefer note 8
Payable against purchase of goods Associates Refer note 10
15. DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial report was authorised for issue on January 27,
2012 by the Board of Directors of the Company.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
18

THIS PAGE LEFT BLANK

THIS PAGE LEFT BLANK