HALF YEARLY

Gillette Pakistan Limited ACCOUNTS

DECEMBER 31, 2020

CONTENTS

Corporate Information 02

Directors' Report 03

Independent Auditors' Report 05

Condensed Interim Statement of Financial Position 06

Condensed Interim Profit and Loss Account 07

Condensed Interim Statement of Comprehensive Income 08

Condensed Interim Cash Flow Statement 09

Condensed Interim Statement of Changes in Equity 10

Notes to the Condensed Interim Financial Statement 11

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Gillette Pakistan Limited ACCOUNTS

DECEMBER 31, 2020

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Gillette Pakistan Limited ACCOUNTS

DECEMBER 31, 2020

DIRECTORS REPORT
For the Half Year Ended December 31, 2020

On behalf of the Board of Directors of Gillette Pakistan Limited (‘the Company’), we are pleased to present the un-audited
financial statements of the Company for the half year ended Dec 31, 2020. The summary of the financial results are as
follows:
Half Year Ended
December December
31, 2020 31, 2019

Revenue from contract with customers PKR in '000' 1099,058 984, 574
Gross Profit PKR in '000' 176,656 387,395
GP % 16.1% 39.3%
Profit before tax PKR in '000' 75,364 288,938
Profit before tax % 6.9% 29.3%
Profit after tax PKR in '000' 13,047 204,197
Profit after tax % 1.2% 20.7%
Earnings per share PKR 0.68 10.64

The current results are closed with growth momentum in Revenue which grew by 9% vs same period year ago. This is
behind a rebuilding of consumer demand after Covid-19 lockdown relaxation in combination of a smart pricing and better
sales mix with higher distribution and better in-store strategies. However due to COVID-19 challenges and other
macroeconomic headwinds, the Company’s gross margin and profit before tax have decreased to 16.1% and 6.9%,
respectively.

The management has also placed efforts in reducing overall marketing spend pool of the Company by way of optimization
without impacting the business growth. Moving forward we expect the business to continue achieving growth ahead of
market behind focus on all lineups coupled with high levels of distribution and coverage expansion.

The management foresee several challenges including higher cost of business due to COVID-19 situation in the country
and globally which might have adverse impact on the Company’s profitability. However, management will ensure that prices
remain competitive. Further, uncertainty on local macro environment may create circumstances to slower down the growth.

The structure of the Board and Committees:

Board of Directors: Audit Committee:

M Khurram Kidwai Chairman
Syed Jawaid Iqbal Chairman
Khalid Ahmed Farid CEO
Syed Danish Hussain Shah Director M Khurram Kidwai Member
Abdullah Saleh Director Abdullah Saleh Member
Anam Parekh Director HR & Remuneration Committee:
Syed Jawaid Iqbal Independent Director Sheikh Adil Hussain Chairman
Sheikh Adil Hussain Independent Director M Khurram Kidwai Member
Khalid Ahmed Farid Member
On behalf of the Board of Directors, we would like to express appreciation to our Shareholders for their absolute
confidence, our valued Customers for their un-paralleled reliance in Company’s illustrious product line and the
Regulators and other stakeholders for their understanding and support.

KHALID AHMED FARID Syed Jawaid Iqbal

Chief Executive Officer Director

February 26, 2021

Karachi

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Gillette Pakistan Limited ACCOUNTS

DECEMBER 31, 2020

December December
31, 2019 31,2020
984, 574 1099,058

387,395 176,656

39.3% 16.1%

288,938 75,364

29.3% 6.9%

204,197 13,047

20.7% 1.2%

10.64 0.68

6.9 16.1

2021 26

4
 Yousuf Adil
Chartered Accountants
Cavish Court A-35, Block 7 & 8
KCHSU, Shahrah-e-Faisal
Karachi - 75350

INDEPENDENT
Pakistan.

Tel: +92 (0) 21 - 3454 6494-7

AUDITORS' REPORT Fax:
Web:
+92 (0) 21 - 3454 1314
www.deloitte.com

To the Members of Gillette Pakistan Limited

Report on review of Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Gillette Pakistan
Limited (the Company) as at December 31, 2020, and the related condensed interim statement of profit or
loss, condensed interim statement of comprehensive income, condensed interim statement of changes in
equity, and condensed interim statement of cash flows, and notes to the financial statements for the half
year then ended (here-in-after referred to as the “condensed interim financial statements”). Management is
responsible for the preparation and presentation of these condensed interim financial statements in
accordance with the accounting and reporting standards as applicable in Pakistan for interim financial
reporting. Our responsibility is to express a conclusion on these condensed interim financial statements
based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagement - 2410
"Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of
condensed interim financial statements consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is substan-
tially 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

Based on our review, nothing has come to our attention that causes us to believe that the accompanying
condensed interim financial statements is not prepared, in all material respects, in accordance with the
accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matters

The figures for the condensed interim statement of profit or loss and condensed interim statement of
comprehensive income for the quarter ended December 31, 2020 have not been reviewed, as we are
required to review only the cumulative figures for the half year ended December 31, 2020.

The engagement partner on the review resulting in this independent auditor’s review report is Nadeem
Yousuf Adil.

Chartered Accountants

Date: March 01, 2021

Place: Karachi

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at December 31, 2020
Note December 31, June 30,
2020 2020
(Unaudited) (Audited)
-------- (Rupees in ‘000) --------
ASSETS

Non-current assets
Right-of-use asset 7 26,018 32,644
Long-term deposits 215 215
26,233 32,859
Current assets
Stock-in-trade 8 486,376 511,860
Trade debts 264,822 193,290
Trade deposits 20,822 13,079
Other receivables and prepayments 246,772 139,306
Other financial assets 303,694 478,957
Sales tax refundable 34,162 58,921
Advance tax 20,039 19,753
Bank balances 15,207 14,558
1,391,894 1,429,724
Total Assets 1,418,127 1,462,583

EQUITY

Share capital and reserves

40,000,000 ordinary shares of Rs.10/- each 400,000 200,000

Issued, subscribed and paid-up share capital

19,200,000 ordinary shares of Rs.10/- each 192,000 192,000
Unappropriated profit 603,316 590,269

Total Equity 795,316 782,269

LIABILITIES
Non-current liabilities
Lease liability 18,953 25,781
Deferred liability - gratuity scheme 22,265 20,316
41,218 46,098
Current liabilities
Trade and other payables 464,632 517,012
Contract liabilities 92,571 93,775
Current portion of lease liability 10,621 9,661
Unclaimed dividend 13,769 13,769
581,593 634,217

Total Equity and Liabilities 1,418,127 1,462,583

Contingencies and commitments 9

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

KHALID AHMED FARID SYED IRSHAD HASSAN SYED JAWAID IQBAL

Chief Executive Officer Chief Financial Officer Director

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Condensed Interim Profit and Loss Account - (Unaudited)

FOR THE HALF YEAR ENDED DECEMBER 31, 2020

Half Year Ended Quarter Ended

December 31, December 31, December 31, December 31,
2020 2019 2020 2019
------------------------- (Rupees in ‘000) --------------------------
Revenue from contract with customers 1,099,058 984,574 614,863 510,523

Cost of goods sold (922,402) (597,179) (565,831) (282,880)

Gross profit 176,656 387,395 49,032 227,643

Selling, marketing and distribution expenses (112,942) (132,129) (51,416) (60,908)

Administrative expenses (19,871) (14,363) (4,010) (4,528)

Other operating expenses (19,574) (4,809) (15,264) (4,688)

Interest Expense (1,339) (2,108) (613) (2,050)

Bank charges (165) (105) (75) (105)

(153,891) (153,515) (71,378) (72,280)

Other income 52,599 55,058 4,303 13,120

Profit before tax 75,364 288,938 (18,043) 168,483

Income tax expense (62,317) (84,741) (26,640) (55,400)

Profit after tax 13,047 204,197 (44,683) 113,083

------------------------- (Rupees) --------------------------
Earnings per share - basic and diluted 0.68 10.64 (2.33) 5.89

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

KHALID AHMED FARID SYED IRSHAD HASSAN SYED JAWAID IQBAL

Chief Executive Officer Chief Financial Officer Director

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Condensed Interim Statement of Comprehensive Income -(Unaudited)

FOR THE HALF YEAR ENDED DECEMBER 31, 2020
Half Year Ended Quarter Ended
December 31, December 31, December 31, December 31,
2020 2019 2020 2019
------------------------- (Rupees in ‘000) --------------------------

Profit after tax 13,047 204,197 (44,683) 113,083

Other comprehensive income for the period - - - -

Total comprehensive income for the period 13,047 204,197 (44,683) 113,083

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

KHALID AHMED FARID SYED IRSHAD HASSAN SYED JAWAID IQBAL

Chief Executive Officer Chief Financial Officer Director

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Condensed Interim Cash Flow Statement - (Unaudited)

FOR THE HALF YEAR ENDED DECEMBER 31, 2020

Note December 31, December 31,

2020 2019
-------- (Rupees in ‘000) --------

Profit before tax 75,364 288,938

CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for non-cash charges and other items:

Depreciation on right-of-use asset 4,861 5,260
Stock-in-trade written down to net realizable value 1,616 442
Provision for slow moving stock-in-trade 250 21
Stock written off 4,820 4,687
Interest income (10,759) (28,987)
Expense recognized on employee benefits - gratuity 1,949 -
Expense charged on employee benefits - pension - 901
Finance Cost 1,339 2,108
4,076 (15,568)
Working capital changes

(Increase) / decrease in current assets:

Stock-in-trade 18,797 (25,063)
Trade debts (71,532) (41,640)
Other receivables and prepayments (108,265) (46,249)
Other financial assets - 5,000
Trade deposits (7,743) (7,037)
Sales tax refundable 24,759 33,901
(143,985) (81,088)
Increase / (decrease) in current liabilities:
Trade and other payables (52,379) (46,691)
Contract liabilities (1,203) 32,817
(53,582) (13,874)

Net cash generated from operations (118,127) 178,408

Defined benefits (paid) / withdrawal - 1,776
Finance cost paid (1,339) (2,108)
Income taxes paid (62,604) (43,735)

Net cash generated from operating activities (182,070) 134,341

CASH FLOWS FROM INVESTING ACTIVITIES

Interest income received 11,558 28,014
Net cash generated from investing activities 11,558 28,014

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid - (57,945)
Principal repayment (4,102) (3,266)
Net cash used in financing activities (4,102) (61,211)

Net decrease in cash and cash equivalents (174,614) 101,144

Cash and cash equivalent at the beginning of the period 493,515 557,937

Cash and cash equivalents at the end of the period 10 318,901 659,081

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

KHALID AHMED FARID SYED IRSHAD HASSAN SYED JAWAID IQBAL

Chief Executive Officer Chief Financial Officer Director

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Condensed Interim Statement of Changes in Equity - (Unaudited)

For the Half Year Ended December 31, 2020
Issued, sub- Unappropriated Total
scribed and paid- profit
up capital
---------------------- (Rupees in ‘000) ----------------------

Balance as at July 01, 2019 192,000 449,914 641,914

Other comprehensive income - - -

Balance as at July 01, 2019 192,000 449,914 641,914

Profit after taxation for the half year

ended December 31, 2019 - 204,197 204,197

Other comprehensive income for the

half year ended December 31, 2019 - - -

Total comprehensive income for the

half year ended December 31, 2019 - 204,197 204,197

Transaction with owners :

Interim dividend @ Rs 3.5 per share - (67,200) (67,200)

Balance as at December 31, 2019 192,000 586,911 778,911

Balance as at July 01, 2020 192,000 590,269 782,269

Profit after taxation for the half year

ended December 31, 2020 - 13,047 13,047

Other comprehensive income for the

half year ended December 31, 2020 - - -

Total comprehensive income for the

half year ended December 31, 2020 - 13,047 13,047

Balance as at December 31, 2020 192,000 603,316 795,316

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

KHALID AHMED FARID SYED IRSHAD HASSAN SYED JAWAID IQBAL

Chief Executive Officer Chief Financial Officer Director

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Notes to the Condensed Interim Financial Information - (Unaudited)

For the Half Year Ended December 31, 2020

1. STATUS AND NATURE OF BUSINESS

1.1 Gillette Pakistan Limited (“the Company”) was incorporated on December 09, 1986 as a public limited
company under the repealed Companies Ordinance, 1984 (now Company’s Act, 2017) and is a
subsidiary of The Series Acquisition B.V. Netherlands (which is a wholly owned subsidiary of The P&G
Company, USA). The registered office of the Company is situated at 11th Floor, Harbour Front, Dolmen
City, HC-3, Block 4, Abdul Sattar Edhi Avenue, Clifton, Karachi-75600, Pakistan and the Company is
listed on Pakistan Stock Exchange Limited. The principal activities of the Company include marketing
and selling of blades and razors.

During the period, on December 17, 2020, the Board of Directors of the Company have passed a
resolution for further issue of share capital, as a consequence, Company has raised its authorised capital
to Rs. 400,000,000. In this regard, subsequent to period end, Company has received Rs.125,686,860
on account of subscription money from M/s. Series Acquisition BV and its nominee shareholders till the
date of authorisation of these condensed interim financial statements.

Impact of COVID-19

In continuation of note 1.2 to annual audited financial statements for the year ended June 30, 2020, we
state that as a result of measures taken by the Government, there has not been any material adverse
impact on fiscal and economic fronts facing the country. The management of the Company is closely
monitoring the situation and so far there is no impact on this condensed interim financial statements of
the Company.

The Management believes that the going concern assumption of the Company remains valid.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These condensed interim statement offinancial statements have been prepared in accordance with
the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The
accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International
Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ with the
requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have
been followed.

These condensed interim financial statements do not include all the notes required for the full financial
statements and therefore should be read in conjunction with the annual financial statements of the
Company for the year ended June 30, 2020.

2.2 These condensed interim financial statements are unaudited. However, a limited scope review of these
condensed interim financial statements have been performed by the external auditors of the Company
in accordance with the requirements of Rule Book of Pakistan Stock Exchange Limited and they have
issued their review report thereon. These condensed interim financial statements are being submitted
to the shareholders as required by section 237 of the Companies Act, 2017.

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Notes to the Condensed Interim Financial Information - (Unaudited)

For the Half Year Ended December 31, 2020

2.3 The comparative statement of financial position presented has been extracted from annual financial
statements for the year ended June 30, 2020, whereas comparative condensed interim statement of
profit or loss and statement of comprehensive income, condensed interim statement of cash flows and
condensed interim statement of changes in equity are stated from the unaudited condensed interim
financial statements for the half year ended December 31, 2019. Condensed interim statement of profit
or loss and condensed interim statement of comprehensive income for quarter ended December 31,
2020 were not subject to review by external auditors.

2.4 Functional and presentation currency

These condensed interim financial statements are presented in Pak Rupees which is also the
Company’s functional currency and figures presented in these condensed interim financial statements
have been rounded off to the nearest thousand rupee.

2.5 Accounting Convention

These condensed interim financial statements have been prepared under the historical cost convention,
except staff retirement benefits which have been carried at present values as determined under the
International Accounting Standards (IAS) 19 (revised) ‘Employee Benefits’ .

2.6 Significant Accounting Estimates and Judgements

The preparation of these condensed interim financial statements in conformity with approved accounting
standards as applicable in Pakistan requires management to make estimates, assumptions and use
of judgments that affects the application of policies and reported amounts of assets and liabilities and
income and expenses. Estimates, assumptions and judgments are continually evaluated and are based
on historical experience and other factors, including reasonable expectations of future events. Revision
to accounting estimates are recognized prospectively commencing from the period of revision.

In preparing these condensed interim financial statements, the significant judgments made by the
management in applying the Company’s accounting policies and the key source of estimation and
uncertainty were the same as those applied to the financial statements for the year ended June 30,
2020.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 The accounting policies and methods of computation adopted in the preparation of these condensed
interim financial statements are the same as those applied in the preparation of the annual audited
financial statements of the Company for the year ended June 30, 2020.

4. FINANCIAL RISK MANAGEMENT

The Company’s financial risk management objectives and policies are consistent with those disclosed
in the annual audited financial statements for the year ended June 30, 2020.

5. FAIR VALUE ESTIMATE

The Company does not hold any financial instruments, which can be categorized using fair value
hierarchy as per the requirements of IFRS 13 “Fair Value Measurement”. However, fair values of other
financial assets and liabilities approximate their carrying values.

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Notes to the Condensed Interim Financial Information - (Unaudited)

For the Half Year Ended December 31, 2020

6. Taxation

Current

Provision for current taxation is based on taxable income at the current rates of taxation and tax paid on
presumptive basis. Income tax paid at import stage falls under Minimum Tax Regime (MTR).

Deferred

Deferred tax asset is not recognized by the Company as timing of availability of sufficient taxable profit
can not be determined.

7. RIGHT-OF-USE ASSETS

The right-of-use assets comprise of lease of employees’ cars from Deinfa Motors (Private) Limited.

8. STOCK-IN-TRADE

Stock-in-trade includes goods costing Rs. 10.120 million (June 30, 2020: 6.054 million) written down by
Rs. 1.616 million (June 30, 2020: Rs. 2.283 million) to net realizable value amounting to Rs. 8.504 million
(June 30, 2020: Rs. 3.771 million).

9. CONTINGENCIES AND COMMITMENTS

9.1 Contingencies

The status of the contingencies which were reported in note 17.1 to the annual audited financial
statements of the Company for the year ended June 30, 2020 have not changed materially in the
current period.

9.2 Commitments

There are no commitments in the current period.

December 31, June 30, December 31,

2020 2020 2019
(Unaudited) (Audited) (Unaudited)
----- Rupees in ‘000 ------
10. CASH AND CASH EQUIVALENTS

Bank balances 15,207 14,558 15,576

Term deposits having maturity upto 3 months 303,694 478,957 643,505
318,901 493,515 659,081

11. TRANSACTIONS WITH RELATED PARTIES

The related parties comprise the parent company (The Series Acquisition B.V., Netherlands), the ultimate
parent company (The Procter and Gamble Company USA), related group companies, companies in
which directors are interested, staff retirement benefit plans, directors, key management personnel
and close member of the family of all the aforementioned related parties. The Company carries out
transactions with various related parties at agreed terms. Significant transactions with related parties
are as follows:

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Notes to the Condensed Interim Financial Information - (Unaudited)

For the Half Year Ended December 31, 2020

11.1 Significant transactions with related parties are as follows:

Half Year Ended
Decemebr 31, Decemebr 31,
Name Relationship with Nature of transaction 2020 2019
the Company (Unaudited) (Unaudited)
----- Rupees in ‘000 ------

Procter and Gamble Associate due to

International common parent
Operations SA, Lancy Company Purchase of finished goods 583,510 534,477

Procter and Gamble Associate due to Expenses reimbursed to 18,779 29,237

Pakistan common parent
(Private) Limited Company Expenses reimbursed from 22,100 32,122

Procter and Gamble Associate due to

International common parent
Operations SA, ROHQ Company Services received 3,463 4,927

Gillette Pakistan Retirement Contribution to provident

Provident Fund benefits plan fund 254 761

Gillette Pakistan Retirement

Pension Fund benefits plan Income from pension fund - 357

Key management
personnel Short term compensation 17,702 10,518

11.2 Amounts (due to) / due from related parties as at period end are shown as under:

December 31, June 30,

Name Relationship with 2020 2020
the Company (Unaudited) (Audited)
----- Rupees in ‘000 ------

Procter and Gamble International

Operations SA, Lancy Associate due to common parent Company (322,559) (377,374)

Procter and Gamble Pakistan

(Private) Limited Associate due to common parent Company 3,753 (19,548)

Procter and Gamble International

Operations SA, ROHQ Associate due to common parent Company (22,326) (19,748)

Series Acquisition BV Associate (12,011) (12,011)

Gillette Pakistan Pension Fund Retirement benefits plan (4,643) (4,643)

12. SUBSEQUENT EVENT

As disclosed in note 1.1, the right issue was approved by the Board of Directors of the Company in their
meeting held on 17 December 2020. The Company announced subsequent to the period end, 66%
right shares (12,672,000 shares at Rs.10 each) amouting to Rs.126,720,000 to issue in the proportion
of shares held by the existing shareholders.

Subsequent to period end the Company received Rs.125,686,860 on account of subscription money
from M/s. Series Acquisition BV and its nominee shareholders till the date of authorisation of these
condensed interim financial statements. The amount of Rs.1,033,140 (103,314 ordinary shares)
remained unsubscribed.

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Notes to the Condensed Interim Financial Information - (Unaudited)

For the Half Year Ended December 31, 2020

13. CORRESPONDING FIGURES

Comparative information has been re-classified, re-arranged or additionally incorporated in these

condensed interim financial statements, wherever necessary, to facilitate comparison and to conform
with changes in presentation in the current period.

14. DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements were authorized for issue by the Board of Directors of the
Company on February 24, 2021.

KHALID AHMED FARID SYED IRSHAD HASSAN SYED JAWAID IQBAL

Chief Executive Officer Chief Financial Officer Director

15