| Colgate-Palmolive (Pakistan) Limited |
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| Annual
Report 2000 |
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| BRITE TOTAL |
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| Brite
Total, the flagship of the company was restaged in 2nd Quarter, 2000. The |
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| revitalized
product has extra power to remove tough stains without damaging |
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| the
colours and fibers. After due evaluation and product tests, leading fabric |
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| and
garment manufacturers like Al-Karam Textile, Mohammad Farooq Textile, |
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| Bonanza
Garments and United Colors of Benetton have acknowledged and |
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| endorsed
the superior product quality. |
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| PALMOLIVE
NATURALS |
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| The
use of natural ingredients for health and beauty has long been recognized |
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| in
Pakistan and are a vital part of an average Pakistani woman's beauty regime. |
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| Thus,
in keeping with this commitment and simple natural goodness of Mother |
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| Earth,
the company has introduced Palmolive Naturals Soap in two variants - |
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| Milk
& Cream and Lime Extracts. It delivers the complete benefits of natural |
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| beauty
to the consumers at an affordable price. The launch is being synergistically |
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| supported
through a 360 degree Marketing Program. |
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| COLGATE
FRESH ENERGY GEL |
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| Colgate
Fresh Energy Gel has been launched in two variants: Ice Blue and |
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| Sparkling
Red. The refreshing gel of Colgate Fresh Energy fights germs and |
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| gives
long lasting fresh breath energy all day long. This launch has further |
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| strengthened
the Colgate equity in Pakistan and has reaffirmed Colgate's |
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| commitment
to provide quality oral care products for its consumers. |
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| AZADI BAR |
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| The
anticipated growth in downscale dishwashing segment made it strategically |
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| necessary
to enter into the low price dishbar market. Azadi dishwashing bar |
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| was
launched in the 2nd Quarter, 2000 and the brand has been successful in |
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| steadily
gaining consumer preference in its introduction period. |
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| EXPRESS
POWER DETERGENT |
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| Keeping
in line with the intensifying competition in the detergent industry, we |
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| re-launched
Express Power detergent with a new and improved product bundle |
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| i.e.
better formula, packaging and an extensive marketing support plan. |
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| CONTENTS |
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| COMPANY
INFORMATION |
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| NOTICE
OF MEETING |
|
| DIRECTORS'
REPORT |
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| PATTERN
OF HOLDING OF SHARES |
|
| AUDITORS'
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| STATEMENT
OF CHANGES IN EQUITY |
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| NOTES
TO THE ACCOUNTS |
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| YEARWISE
FINANCIAL HIGHLIGHTS |
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| COMPANY
INFORMATION |
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|
| BOARD
OF DIRECTORS |
|
|
| IQBAL
ALI LAKHANI |
|
Chairman |
|
| AMIN
MOHAMMED LAKHANI |
|
| TASLEEMUDDIN
AHMED BATLAY |
|
| SOREN
PETER DAM |
|
| EBRAHIM
SIDAT |
|
| A.
AZIZ EBRAHIM |
|
| ZULFIQAR
ALI LAKHANI |
|
Chief Executive |
|
|
| ADVISOR |
|
| SULTAN
ALI LAKHANI |
|
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| COMPANY
SECRETARY |
|
| RAMZAN
ALI HALANI |
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|
| AUDITORS |
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| EBRAHIM
& CO. |
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| Chartered
Accountants |
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| REGISTERED
OFFICE |
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| Lakson
Square, Building No. 2 |
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| Sarwar
Shaheed Road |
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| Karachi 74200 |
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| Pakistan |
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| FACTORIES |
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| Detergents,
Soap and Paste Units |
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| G-6,
S.I.T.E. Kotri |
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| Distt.
Dadu (Sindh) |
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| Pakistan |
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| NOTICE
OF MEETING |
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| NOTICE
IS HEREBY GIVEN that the 22nd Annual General Meeting of Colgate-Palmolive
(Pakistan) |
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| Limited
will be held on Tuesday, December 19, 2000 at 11.30 a.m. at Avari Towers
Hotel, Fatima Jinnah |
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| Road,
Karachi to transact the following business: |
|
|
| 1.
To receive, consider and adopt the audited balance sheet and profit and loss
account for the year |
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| ended
June 30, 2000 and the Directors' and Auditors' reports thereon. |
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| 2.
To declare a dividend @ 30% i.e. Rs. 3.00 per share of Rs. 10/- each. |
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| 3.
To appoint Auditors and to fix their remuneration. |
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By Order of the Board |
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|
RAMZAN ALI HALANI |
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| KARACHI:
November 14, 2000 |
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Company Secretary |
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| NOTES: |
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| 1.
The share transfer books of the Company will remain closed from December 06,
2000 to December |
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| 19,
2000 both days inclusive. Transfers received in order at the Registered
Office of the Company |
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| situated
at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi upto December
05, 2000 |
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| will
be considered in time for entitlement of the dividend. |
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|
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| 2.
A member who has deposited his/her shares into Central Depository Company of
Pakistan Limited, |
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| must
bring his/her participant's ID Number and account/sub-account Number
alongwith original |
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| National
Identity Card (NIC) or original Passport at the time of attending the
meeting. |
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|
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| 3.
A member of the Company entitled to attend and vote may appoint another
member as his/her proxy |
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| to
attend, speak and vote instead of him/her. |
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| 4.
If a proxy is granted by a member who has deposited his/her shares in Central
Depository Company |
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| of
Pakistan Limited, the proxy must be accompanied with participant's ID Number
and account/sub- |
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| account
Number alongwith attested copies of the NIC or the Passport of the beneficial
owner. |
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| Representatives
of corporate members should bring the usual documents required for such |
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| purpose. |
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| 5.
Forms of proxy, in order to be effective, must be received at the registered
office of the Company |
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| not
later than 48 hours before the time of the meeting. |
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| 6.
Members are requested to notify the Company promptly of any change in their
addresses. |
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| 7.
Form of proxy is enclosed herewith. |
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| DIRECTORS'
REPORT |
|
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| The
Directors of the Company present their report together with the Audited
Accounts for the year |
|
| ended
June 30, 2000: |
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|
Rupees in 000's |
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|
| Profit
after taxation |
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|
58,504 |
|
| Unappropriated
profit brought forward |
|
1,602 |
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|
------------------ |
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| Profit
available for appropriation |
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|
60,106 |
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| Appropriations |
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| Proposed
cash dividend @ 30% |
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|
36,691 |
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| Transfer
to General Reserve |
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|
22,000 |
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------------------ |
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|
58,691 |
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------------------ |
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| Unappropriated
profit carried forward |
|
1,415 |
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|
========== |
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| OPERATING
RESULTS |
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| The
Company has shown a satisfactory performance during the year under review.
The total sales of |
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| the
company reached Rs. 1.854 billion. |
|
|
| Volume
and value growths registered over last year were 30.4% and 29.1%
respectively. The |
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| corresponding
growth in value was not able to match the volume growth because of a change
in the |
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| product
mix and increased demand for low price products. |
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| The
main spurt of growth can be attributed to the launch of new products .in our
core categories. The |
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| performance
in the Oral Care, Surface Care and Fabric Care has been particularly
encouraging, |
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| further
permitting us to .invest in the advertising and promotion of our main brands.
Right advertising |
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| and
promotional mix helped us gain valuable shelf space and market share in the
above three |
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| categories. |
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| The
gross profit for the year has increased from Rs. 316.53 million in 1999 to
Rs. 412.97 million, |
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| showing
an increase of 30.47%. This improved profitability has been utilized
aggressively for our |
|
| ongoing
downscale marketing plans, which has strengthened our leadership position for
key brands |
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| and
helped volume recovery for other brands. |
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| Profit
before tax also improved from Rs.69.75 million to Rs. 91.04 million posting a
growth of 30.52%. |
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| The
administrative and selling expenses have increased from Rs. 231.4 million to
Rs 305.2 million |
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| during
the past review period, registering a growth of 31.9%. This increase is a
result of inflation as |
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| well
as the investments in advertising for major brands. Heavy media support
helped convince users |
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| to
switch to our premium products from competitive products, or upscale to our
low price brands from |
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| unbranded
goods. Focus continues to be on providing low price quality products that
help build |
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| consumer
consumption and induce re-purchase. |
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| FUTURE
PROSPECTS |
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| In
a highly competitive market scenario in the consumer market and the economic
down trend, the |
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| consumer
goods industry in particular will resort to heavy media spending and
additional expenditure |
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| on
promotions to maintain the growth momentum. |
|
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| The
recent devaluation of the rupee will raise the cost of inputs and in the
current economic situation, |
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| make
it difficult to adjust selling prices thus shrinking margins, making it more
challenging than ever |
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| to
balance the investments in advertising and promotions for existing as well as
new products. |
|
|
| Our
existing products continue to grow, fuelled by timely re-launches. New
products that have been |
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| launched,
such as Colgate Gel & Palmolive Natural Soap, will be instrumental in
helping us gain an |
|
| edge
over competition in terms of having a diverse portfolio and having more to
offer to the |
|
| consumer. |
|
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| In
addition, the company has drawn up plans for the launch of new products to
achieve accelerated |
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| growth
of business volumes and profits. |
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|
| Import
duties for a number of raw materials used for the local manufacture of
detergents are still at |
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| 35%
whereas duties on finished detergents is also 35% and duties on detergents
imported in bulk |
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| is
25%. Additionally, Central Excise Duty on imported finished goods such as
detergents is levied |
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| on
landed cost, whereas Central Excise Duty on locally manufactured detergents
is levied on retail |
|
| prices.
These anomalies are unfortunately promoting the import of finished products
at the expense |
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| of
local manufacture. |
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| We
are approaching the Tariff Commission once again to rectify these anomalies
and sincerely hope |
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| that
the correction will come about soon. |
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|
| STAFF
RELATIONS |
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| The
management diligently maintains the relations of its personnel and management
staff, whose |
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| efforts
are rewarded adequately. Satisfaction of its employees remains a key priority
for the |
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| company. |
|
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| For
senior management, ongoing training in the fields of production, marketing
and technology are |
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| continuously
imparted to sufficiently improve development and progress. |
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|
| AUDITORS |
|
| M/s.
Ebrahim & Co., Chartered Accountants, the existing Auditors of the
Company being eligible |
|
| have
offered themselves for re-appointment. |
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|
| PATTERN
OF SHARE-HOLDING |
|
| The
Share-Holding pattern in the prescribed form is given in this report. |
|
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|
|
On behalf of Board of Directors |
|
|
|
|
|
|
|
|
|
IQBAL ALI LAKHANI |
|
| Karachi:
October 26, 2000 |
|
Chairman |
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT JUNE 30, 2000 |
|
|
| No. of |
|
Shareholding |
|
Total Shares |
|
| Shareholders |
From |
|
To |
Held |
|
|
| 158 |
1 |
100 |
Shares |
6,584 |
|
| 196 |
101 |
500 |
Shares |
47,124 |
|
| 48 |
501 |
1,000 |
Shares |
28,951 |
|
| 62 |
1,001 |
5,000 |
Shares |
154,191 |
|
| 13 |
5,001 |
10,000 |
Shares |
85,001 |
|
| 11 |
10,001 |
15,000 |
Shares |
129,086 |
|
| 2 |
15,001 |
20,000 |
Shares |
32,033 |
|
| 4 |
20,001 |
25,000 |
Shares |
83,152 |
|
| 2 |
30,001 |
35,000 |
Shares |
67,889 |
|
| 1 |
35,001 |
40,000 |
Shares |
39,502 |
|
| 5 |
40,001 |
45,000 |
Shares |
207,698 |
|
| 2 |
50,001 |
55,000 |
Shares |
106,288 |
|
| 1 |
75,001 |
80,000 |
Shares |
76,819 |
|
| 1 |
80,001 |
85,000 |
Shares |
82,378 |
|
| 1 |
100,001 |
105,000 |
Shares |
103,955 |
|
| 1 |
125,001 |
130,000 |
Shares |
129,760 |
|
| 1 |
190,001 |
195,000 |
Shares |
193,279 |
|
| 1 |
290,001 |
295,000 |
Shares |
294,402 |
|
| 1 |
295,001 |
300,000 |
Shares |
299,802 |
|
| 1 |
310,001 |
315,000 |
Shares |
312,219 |
|
| 1 |
325,001 |
330,000 |
Shares |
327,046 |
|
| 1 |
345,001 |
350,000 |
Shares |
349,227 |
|
| 1 |
425,001 |
430,000 |
Shares |
426,543 |
|
| 1 |
460,001 |
465,000 |
Shares |
464,578 |
|
| 1 |
790,001 |
795,000 |
Shares |
791,783 |
|
| 1 |
845,001 |
850,000 |
Shares |
845,412 |
|
| 1 |
1,150,001 |
1,155,000 |
Shares |
1,151,484 |
|
| 1 |
1,720,001 |
1,725,000 |
Shares |
1,725,000 |
|
| 1 |
3,665,001 |
3,670,000 |
Shares |
3,669,077 |
|
| ------------------ |
|
------------------ |
|
|
| 521 |
|
|
12,230,263 |
|
|
| ========== |
|
|
========== |
|
|
|
|
|
|
| Categories
of Shareholders |
|
Number |
Shares held |
Percentage |
|
|
| Individuals |
|
504 |
3,673,671 |
30.04 |
|
| Joint
Stock Companies |
|
10 |
3,146,773 |
25.73 |
|
| Financial
Institutions |
|
4 |
11,760 |
0.09 |
|
| Others: |
|
|
| Foreign
Companies |
|
3 |
5,398,059 |
44.14 |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
521 |
12,230,263 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
ZULFIQAR ALI LAKHANI |
|
TASLEEMUDDIN A. BATLAY |
|
|
Chief Executive |
|
Director |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of COLGATE-PALMOLIVE (PAKISTAN)
LIMITED as |
|
| at
June 30, 2000 and the related profit and loss account, cash flow statement
and statement of |
|
| changes
in equity togetherwith 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 purpose 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 above said statements. We
believe that our audit |
|
| provides
a reasonable basis for our opinion and, after due verification, we report
that: |
|
|
| a)
in our opinion, proper books of accounts have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
|
|
|
| b)
in our opinion: |
|
|
|
| i)
the balance sheet and profit and loss account togetherwith 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
except for the changes as explained in notes 2.10 and 15.2 with which we
concur; |
|
|
| ii)
the expenditure incurred during the year was for the purpose of the Company's
business; and |
|
|
|
| iii)
the business conducted, investments made and the expenditure incurred during
the year |
|
| were
in accordance with the objects of the Company; |
|
|
| c)
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, cash flow statement and statement
of changes |
|
| in
equity togetherwith 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, 2000 and of the profit, its cash flows and changes in equity
for the year |
|
| then ended; and |
|
|
| d)
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. |
|
|
|
|
|
|
|
EBRAHIM & CO. |
|
|
| Karachi
: October 26, 2000 |
|
|
Chartered Accountants |
|
|
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
(Rs. in
000's) |
|
|
| TANGIBLE
FIXED ASSETS |
|
3 |
147,719 |
119,164 |
|
| LONG
TERM LOANS |
|
4 |
1,745 |
2,037 |
|
| LONG
TERM DEPOSITS |
|
5 |
5,057 |
4,728 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Stores
and spares |
|
6 |
10,650 |
7,337 |
|
| Stock in trade |
|
7 |
246,279 |
203,060 |
|
| Trade debts |
|
8 |
94,839 |
84,846 |
|
| Loans
and advances |
|
9 |
6,356 |
14,127 |
|
| Trade
deposits and short term prepayments |
10 |
8,252 |
4,468 |
|
| Other
receivables |
|
11 |
16,763 |
9,809 |
|
| Cash
and bank balances |
|
12 |
2,232 |
1,471 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
385,371 |
325,118 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
13 |
7,932 |
6,520 |
|
| Short
term loan and running finances |
14 |
51,700 |
46,306 |
|
| Creditors,
accrued and other liabilities |
15 |
141,771 |
89,774 |
|
| Dividends |
|
16 |
36,794 |
24,535 |
|
| Provision
for taxation |
|
|
1,835 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
240,032 |
167,135 |
|
| NET
CURRENT ASSETS |
|
145,339 |
157,983 |
|
|
|
|
------------------ |
------------------ |
|
|
299,860 |
283,912 |
|
|
|
========== |
========== |
|
|
| FINANCED BY: |
|
|
|
| CAPITAL
AND RESERVES |
|
| Share capital |
|
17 |
122,303 |
122,303 |
|
| Capital reserve |
|
18 |
13,456 |
13,456 |
|
| Revenue
reserves |
|
19 |
146,415 |
124,602 |
|
|
|
|
------------------ |
------------------ |
|
| Shareholders'
equity |
|
|
282,174 |
260,361 |
|
|
|
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
| TO
FINANCE LEASES |
|
20 |
9,650 |
17,582 |
|
| DEFERRED
LIABILITY |
|
21 |
5,843 |
3,871 |
|
| LONG
TERM DEPOSITS |
|
22 |
2,193 |
2,098 |
|
| CONTINGENCIES
AND COMMITMENTS |
23 |
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
299,860 |
283,912 |
|
|
|
|
========== |
========== |
|
|
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
ZULFIQAR ALI LAKHANI |
|
TASLEEMUDDIN A. BATLAY |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
|
(Rs. in
000's) |
|
|
| Sales |
|
24 |
1,519,711 |
1,198,375 |
|
| Cost
of goods sold |
|
25 |
1,106,737 |
881,840 |
|
|
|
|
------------------ |
------------------ |
|
| Gross profit |
|
|
412,974 |
316,535 |
|
|
|
|
|
|
| Administrative
and selling expenses |
26 |
305,185 |
231,438 |
|
|
|
|
------------------ |
------------------ |
|
| Operating profit |
|
|
107,789 |
85,097 |
|
| Other income |
|
27 |
4,691 |
6,904 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
112,480 |
92,001 |
|
|
|
|
------------------ |
------------------ |
|
| Financial
charges |
|
28 |
14,701 |
17,155 |
|
| Workers'
profit participation fund |
|
|
4,889 |
3,743 |
|
| Workers'
welfare fund |
|
|
1,853 |
1,351 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
21,443 |
22,249 |
|
|
------------------ |
------------------ |
|
| Net
profit for the year |
|
|
91,037 |
69,752 |
|
| Taxation |
|
29 |
32,533 |
23,847 |
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
58,504 |
45,905 |
|
| Unappropriated
profit brought forward |
|
1,602 |
1,158 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
|
60,106 |
47,063 |
|
|
|
|
|
|
| Appropriations |
|
|
| Proposed
dividend @ 30% (1999: 20%) |
|
36,691 |
24,461 |
|
| Transfer
to general reserve |
|
|
22,000 |
21,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
58,691 |
45,461 |
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
profit carried forward |
|
1,415 |
1,602 |
|
|
|
|
========== |
========== |
|
| EARNINGS
PER SHARE |
|
30 |
Rs. 4.78 |
Rs. 3.75 |
|
|
|
|
========== |
========== |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
