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Company Information
Core Values
Board of Directors
Audit Committee
Auditors
Impeccable
Integrity
Wowing our
Consumers & Customers
02
Living an
Enterprise Culture
Demonstrating a
Passion for Winning
Making a
Better World
Company Secretary
Mr. Amar Naseer
Registered Office
Avari Plaza
Fatima Jinnah Road
Karachi 75530
Human Resource
& Remuneration
Committee
Mr. Zulfikar Monnoo
Chairman & Member
Mr. Kamal Monnoo
Member
Share Registration
Office
Share Registrar Department,
Central Depository Company of
Pakistan Limited,
CDC House, 99-B, Block "B", S.M.C.H.S,
Main Shahra-e-Faisal, Karachi - 74400
Website Address
www.unileverpakistan.com.pk
www.unileverpakistanfoods.com.pk
03
Vision
Company Information
Core Values
Board of Directors
Audit Committee
Auditors
Impeccable
Integrity
Wowing our
Consumers & Customers
02
Living an
Enterprise Culture
Demonstrating a
Passion for Winning
Making a
Better World
Company Secretary
Mr. Amar Naseer
Registered Office
Avari Plaza
Fatima Jinnah Road
Karachi 75530
Human Resource
& Remuneration
Committee
Mr. Zulfikar Monnoo
Chairman & Member
Mr. Kamal Monnoo
Member
Share Registration
Office
Share Registrar Department,
Central Depository Company of
Pakistan Limited,
CDC House, 99-B, Block "B", S.M.C.H.S,
Main Shahra-e-Faisal, Karachi - 74400
Website Address
www.unileverpakistan.com.pk
www.unileverpakistanfoods.com.pk
03
Winning with
Brands and Innovations
Directors Report
The directors present the Annual Report together with the Companys audited financial statements for the year ended
December 31, 2014.
Business Review:
In 2014 the Company delivered EPS growth of 17%. Sales grew by 12%, with underlying volume growth of 7%. Gross
margin improved by 137 bps on the back of cost efficiencies and improved sales mix. Advertising and promotion spend
increased by 59 bps, reinforcing our commitment to build brands for the long term. Profit from operations increased by
118 bps to 22% of Sales.
2013
Rupees in million
7,787
3,360
1,740
1,690
1,172
6,959
2,908
1,473
1,464
1,005
190.29
163.17
Sales
Gross Profit
Profit from Operations
Profit before tax
Profit after tax
EPS-basic (Rs.)
Underlying
sales growth
11.9%
Financial Headlines
Gross margin
137 bps
Our People
16.6%
Dividends
Final Dividend 2014: NIL. (2013: Rs. 42.28 per share).
06
07
Auditors
Review Report
Review Report to the Members on the Statement of Compliance with
Best Practices of Code of Corporate Governance
We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate
Governance (the Code) prepared by the Board of Directors of Unilever Pakistan Foods Limited (the Company) for the
year ended 31 December 2014 to comply with the requirements of Listing Regulations of Karachi and Lahore Stock
Exchanges where the Company is listed.
The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is
to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance
reflects the status of the Companys compliance with the provisions of the Code and report if it does not and to highlight
any non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Companys
personnel and review of various documents prepared by the Company to comply with the Code.
As part of our audit of the financial statements we are required to obtain an understanding of the accounting and
internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to
consider whether the Board of Directors statement on internal control covers all risks and controls or to form an
opinion on the effectiveness of such internal controls, the Companys corporate governance procedures and risks.
The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit
Committee, place before the Board of Directors for their review and approval its related party transactions
distinguishing between transactions carried out on terms equivalent to those that prevail in arms length transactions
and transactions which are not executed at arms length price and recording proper justification for using such
alternate pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of
the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee.
We have not carried out any procedures to determine whether the related party transactions were undertaken at arms
length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance
does not appropriately reflect the Companys compliance, in all material respects, with the best practices contained in
the Code as applicable to the Company for the year ended 31 December 2014.
Further, we highlight below instance of non-compliance with the requirement of the Code as reflected in the paragraph
reference where it is stated in the Statement of Compliance:
Paragraph
reference
17
Description
The Internal Audit function of the Company is performed by Unilever Pakistan Limited (an associated
Company) through shared service arrangements, which has employed suitably qualified and experienced
audit staff for the purpose. The said audit staff are conversant with the policies and procedures of the
Company and involved in the Internal Audit function on a full time basis. The Company has applied to
obtain the concurrence of SECP on these arrangements.
24
Financial Statements
2014
Balance Sheet
Balance Sheet
2014
2013
(Rupees in thousand)
Note
ASSETS
Non-current assets
5
6
7
17
1,803,992
81,637
17,855
1,776
1,905,260
1,020,414
81,637
18,558
705
1,121,314
25,682
849,057
204,351
16,077
60,067
51,901
173,843
42,690
137,024
1,560,692
22,229
594,105
182,797
16,865
49,212
19,843
36,067
283,754
1,204,872
Current assets
Stores and spares
Stock in trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
Taxation - net
Sales tax refundable
Cash and bank balances
Total assets
8
9
10
11
12
13
14
3,465,952
2,326,186
2014
2013
(Rupees in thousand)
15
16
61,576
721,822
783,398
61,576
388,153
449,729
17
18
1,369
110,870
112,239
4,328
107,594
111,922
19
20
2,518,817
21,791
757
28,950
2,570,315
1,716,409
15,942
863
25,161
6,160
1,764,535
Total liabilities
2,682,554
1,876,457
3,465,952
2,326,186
Share capital
Reserves
LIABILITIES
Non-current liabilities
Staff retirement benefit
Deferred taxation
Current liabilities
Trade and other payables
Provisions
Accrued interest / mark up
Short term borrowings
Taxation - net
21
22
Fariyha Subhani
Chief Executive
28
Ali Tariq
Director and Chief Financial Officer
Unilever Pakistan Foods Limited Annual Report 2014
29
Balance Sheet
Balance Sheet
2014
2013
(Rupees in thousand)
Note
ASSETS
Non-current assets
5
6
7
17
1,803,992
81,637
17,855
1,776
1,905,260
1,020,414
81,637
18,558
705
1,121,314
25,682
849,057
204,351
16,077
60,067
51,901
173,843
42,690
137,024
1,560,692
22,229
594,105
182,797
16,865
49,212
19,843
36,067
283,754
1,204,872
Current assets
Stores and spares
Stock in trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
Taxation - net
Sales tax refundable
Cash and bank balances
Total assets
8
9
10
11
12
13
14
3,465,952
2,326,186
2014
2013
(Rupees in thousand)
15
16
61,576
721,822
783,398
61,576
388,153
449,729
17
18
1,369
110,870
112,239
4,328
107,594
111,922
19
20
2,518,817
21,791
757
28,950
2,570,315
1,716,409
15,942
863
25,161
6,160
1,764,535
Total liabilities
2,682,554
1,876,457
3,465,952
2,326,186
Share capital
Reserves
LIABILITIES
Non-current liabilities
Staff retirement benefit
Deferred taxation
Current liabilities
Trade and other payables
Provisions
Accrued interest / mark up
Short term borrowings
Taxation - net
21
22
Fariyha Subhani
Chief Executive
28
Ali Tariq
Director and Chief Financial Officer
Unilever Pakistan Foods Limited Annual Report 2014
29
2014
2013
(Rupees in thousand)
Sales
23
7,787,059
6,958,846
Cost of sales
24
(4,426,989)
(4,051,302)
3,360,070
2,907,544
Gross profit
Distribution cost
25
(1,445,978)
(1,234,866)
Administrative expenses
26
(160,740)
(156,472)
27
(127,212)
(115,857)
Other income
28
113,582
72,549
1,739,722
1,472,898
(49,793)
(9,043)
1,689,929
1,463,855
(518,108)
(459,100)
1,171,821
1,004,755
29
Taxation
Profit after taxation
Other comprehensive income:
Items that will not be reclassified to Profit or Loss
1,552
(544)
1,008
(1,781)
606
(1,175)
1,172,829
1,003,580
190.29
163.17
18
19
2014
2013
(Rupees in thousand)
1,689,929
1,463,855
59,101
13
2,061
10,161
(56,101)
15,235
1,705,164
52,849
5,716
(558)
5,796
3,115
(31,795)
35,123
1,498,978
(3,453)
(254,952)
(21,554)
788
(10,855)
(6,623)
(32,058)
(328,707)
(5,246)
156,269
(36,684)
(4,183)
(9,609)
(36,067)
61,075
125,555
732,209
5,849
738,058
2,114,515
486,962
8,434
(4,640)
490,756
2,115,289
(10,267)
(695,383)
(4,325)
703
(3,147)
(459,498)
(4,417)
3,919
1,405,243
1,652,146
Note
Note
Mark-up paid
Income tax paid
Staff retirement benefits - obligation paid
Decrease in long term loans
20
9
21
22
23
24
30
Ali Tariq
Director and Chief Financial Officer
Unilever Pakistan Foods Limited Annual Report 2014
31