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MIRA
INFORM REPORT
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Report Date : |
17.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
COLGATE-PALMOLIVE (PAKISTAN) LIMITED
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Formerly Known As : |
National Detergents Limited |
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Registered Office : |
Lakson Square, Building
No. 2, Sarwar Shaheed Road, Karachi-74200 |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2007 |
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Year of Establishment : |
1977 |
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Com. Reg. No.: |
0005832 |
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Legal Form : |
Public Limited
Company |
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Line of Business : |
Subject is engaged
in the manufacture and sale of detergents, personal and other related
products |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Business Name
COLGATE-PALMOLIVE
(PAKISTAN) LIMITED
Full Address
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Registered Address |
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Lakson Square,
Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan |
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Tel |
92 (21) 5698000, 5685135 |
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Fax |
92 (21) 5684712, 5683410 |
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Website |
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Short Description Of Business
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a. |
Nature of Business |
Company is mainly
engaged in the manufacture and sale of detergents, personal and other related
products. |
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b. |
Year Established |
1977 |
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c. |
Registration # |
0005832 |
Factory Location
G-6, S.I.T.E. Kotri
District Jamshoro (Sindh)
Pakistan
Branches
|
In Karachi, Lahore, Rawalpindi, Multan, Peshawar & Quetta |
Auditors
|
A.F. Ferguson & Co. (Chartered Accountants) |
Legal Status
|
Colgate-Palmolive
(Pakistan) Limited 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. |
Details of Chairman/Directors
|
Names |
Designation |
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Mr. Iqbal Ali Lakhani Mr. Zulfiqar Ali Lakhani Mr. Amin Mohammed Lakhani Mr. Tasleemuddin Ahmed Batlay Mr. Fabian T. Garcia Mr. Peter Justin Skala Mr. Peter John Graylin Mr. A. Aziz Ebrahim |
Chairman Chief Executive Director Director Director Director Director Director |
Categories of Shareholders
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Categories |
Shareholding (%) |
|
Directors, Chief Executive Officer, and
their spouse 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 Share holders holding 10% General
Public a. Local b. Foreign |
1.44 41.21 0.002 0.02 0.04 0.02 71.02 6.90 0.09 |
Associated Companies
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(1) Century Paper & Board Mills Limited,
Pakistan. (2) Cyber Internet Services (Pvt)
Limited, Pakistan. (3) Century Insurance Company Limited, Pakistan. (4) Tritex Cotton Mills Limited, Pakistan. (5) Clover Foods Pakistan Limited, Pakistan. (6) Merit Packaging Limited, Pakistan. (7) Siza Foods (Pvt) Limited, Pakistan. (8) Reliance Chemicals Limited, Pakistan. (9) Century Power Generation Limited, Pakistan. (10) Accuray Surgicals Ltd, Pakistan. (11) Siza (Pvt) Limited, Pakistan. (12) Siza Services (Pvt) Limited, Pakistan. (13) Siza Commodities (Pvt) Limited, Pakistan. (14)
Premier Fashions (Pvt) Limited, Pakistan. |
Principle Activities
|
Company is mainly
engaged in the manufacture and sale of detergents, personal and other related
products. |
Number of Employees
550 - 600
Plant Capacity & Production
|
The capacity and production of the company’s plant is indeterminable as it involves varying processes of manufacture. |
Annual Sales Turnover
|
Year |
In
Pak Rupees |
|
2007 |
7,445,820,000/- |
Distributors Network
Mainly in all major
cities of Pakistan.
Bankers
·
Faysal Bank Limited, Pakistan.
·
Habib Metropolitan Bank Limited, Pakistan.
·
Habib Bank Limited, Pakistan.
·
The Hongkong & Shanghai Banking Corporation Ltd.
·
Meezan Bank Limited, Pakistan.
·
Muslim Commercial Bank Limited, Pakistan.
·
National Bank of Pakistan, Pakistan.
·
Oman International Bank S.A.O.G. , Pakistan
·
Soneri Bank Limited, Pakistan.
·
(10) Standard Chartered Bank, Pakistan.
·
(11) United
Bank Limited, Pakistan.
Business Overview
Financial Year 2006-07 has also proved to be successful year for
the Company due to maintained growth momentum in turnover and profits. Company
managed to attain a growth of 18.45% in its sales from Rs. 6.29 bn to Rs. 7.45
bn during the operations of the year ended June 30, 2007. All four Business
Cares - Fabric, Personal, Oral and Surface showed sustained growth. The
increasing costs of imported raw materials and other inputs in a highly
competitive business environment, tried to de-track the Company from its growth
oriented objective, however focused advertisements, innovative & efficient
supply chain strategies, effective communications and improved sales mix
resulted in a favorable outcome. Gross profit margin of the Company increased
by 16.41% to Rs. 1.88 bn from Rs.1.62 bn of last year 2005-06. Increased sales
resulted in selling & distribution expenses touching the amount of Rs. 907
mn as compared to Rs. 759 mn of the last year. Optimum utilization of funds has
contributed to increased profits from operations which have demonstrated an
upward movement of 16.35% to Rs. 911 mn from Rs. 783 mn of last year. Profit
after tax also portrayed a growth of 21.24% from Rs. 499 mn to Rs. 605 mn
resulting in an increase by same percentage in Earnings Per Share to Rs. 39.56
compared to the corresponding EPS of Rs. 32.63 of last year.
Future Outlook
Company has been
facing the challenges of inflation and cost escalations due to increasing raw
material and energy costs. The economic scenario in the country gives
confidence of continuing growth in its business. While management are
optimistic for good results in 2007-08, as well, it is considered prudent on it
part to state that tougher market situations particularly in the later half of
the next financial year can be expected.
Foreign Exchange Rates
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 80.00 |
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UK Pound |
1 |
Rs. 119.50 |
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Euro |
1 |
Rs. 108.40 |
Financial Position
Very Sound.
Comments
Lakson Group of Companies
is engaged in diversified activities, which includes Chemical, Food &
Allied, Tobacco, Fuel & Energy, Information Technology, Paper & Board,
Surgical and Insurance etc. The group is well known and directors are resourceful
and experienced businessmen. Trade relations are reported as fair. Payments to creditors etc are reported as
normal. Company can be considered for
normal business dealings at usual trade terms and conditions.
PROFIT AND LOSS ACCOUNT
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FOR THE YEAR
ENDED JUNE 30, 2007 |
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Note |
2007 |
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2006 |
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(Rupees in '000) |
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Turnover |
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7,445,820 |
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6,286,355 |
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Sales tax |
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(1,036,767) |
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(878,335) |
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Trade discounts |
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(474,629) |
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(402,325) |
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5,934,424 |
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5,005,695 |
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Cost of sales |
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26 |
(4,054,746) |
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(3,390,485) |
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Gross profit |
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1,879,678 |
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1,615,210 |
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Selling and distribution
cost |
|
27 |
(907,481) |
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(759,258) |
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Administrative
expenses |
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28 |
(60,407) |
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(48,485) |
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Other operating
expenses |
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29 |
(61,795) |
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(59,527) |
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Other operating
income |
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30 |
61,411 |
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34,702 |
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Profit from
operations |
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911,406 |
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782,642 |
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Finance costs |
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31 |
(14,801) |
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(13,309) |
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Profit before
taxation |
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896,605 |
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769,333 |
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Taxation |
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32 |
(291,854) |
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(270,478) |
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604,751 |
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498,855 |
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Earnings per
share (restated) - basic & diluted |
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39.56 |
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32.63 |
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BALANCE SHEET AS AT JUNE 30, 2007
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Note |
2007 |
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2006 |
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(Rupees in '000) |
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ASSETS |
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NON-CURRENT
ASSETS |
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Property, plant
and equipment |
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4 |
864,837 |
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739,281 |
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Intangible assets |
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5 |
17,400 |
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23,200 |
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Long term loans |
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6 |
14,185 |
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9,551 |
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Long term security
deposits |
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7 |
3,521 |
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1,983 |
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899,943 |
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774,015 |
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CURRENT ASSETS |
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Stores and spares |
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8 |
16,742 |
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16,140 |
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Stock in trade |
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9 |
777,851 |
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614,349 |
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Trade debts |
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10 |
144,263 |
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105,782 |
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Loans and advances |
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11 |
37,763 |
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35,728 |
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Trade deposits, short
term prepayments and |
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other receivables |
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12 |
30,670 |
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10,863 |
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Accrued markup |
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13 |
119 |
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2,609 |
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Taxation |
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27,023 |
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- |
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Short term
investments |
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14 |
295,455 |
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161,367 |
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Cash and bank
balances |
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15 |
420,696 |
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390,638 |
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1,750,582 |
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1,337,476 |
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TOTAL ASSETS |
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2,650,525 |
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2,111,491 |
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EQUITY AND
LIABILITIES |
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SHARE CAPITAL
AND RESERVES |
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Authorised share
capital |
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20,000,000 ordinary
shares of Rs. 10 each |
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200,000 |
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200,000 |
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Issued, subscribed
and paid-up share capital |
16 |
152,879 |
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122,303 |
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Reserves |
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17 |
1,553,776 |
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1,175,286 |
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Surplus on
revaluation of investments |
14 |
455 |
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1,367 |
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1,707,110 |
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1,298,956 |
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LIABILITIES |
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NON-CURRENT
LIABILITIES |
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Long term loans |
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|
18 |
5,625 |
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8,125 |
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Liabilities
against assets subject to finance |
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leases |
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19 |
- |
|
1,085 |
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Deferred taxation |
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|
20 |
115,242 |
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99,532 |
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Long term deposits |
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21 |
4,098 |
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3,845 |
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|
|
124,965 |
|
112,587 |
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CURRENT
LIABILITIES |
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Trade and other
payables |
|
22 |
623,463 |
|
516,706 |
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Accrued markup |
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23 |
3,506 |
|
276 |
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Current
maturities of: |
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- Long term loans |
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18 |
2,500 |
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54,064 |
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- Liabilities against assets subject to |
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finance leases |
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19 |
- |
|
573 |
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Short term
borrowings |
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24 |
188,981 |
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- |
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Taxation |
|
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- |
|
128,329 |
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|
818,450 |
|
699,948 |
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Total
Liabilities |
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943,415 |
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812,535 |
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Contingencies
and commitments |
|
25 |
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TOTAL EQUITY
AND LIABILITIES |
|
2,650,525 |
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2,111,491 |
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FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.33 |
|
UK Pound |
1 |
Rs.73.92 |
|
Euro |
1 |
Rs.66.69 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)