UNILEVER PAKISTAN FOODS LIMITED

COMPANY INFORMATION

BOARD OF DIRECTORS

Mr Kamran Y Mirza Independent Director

amp Chairman of the Board

Ms Shazia Syed Executive Director amp Chief Executive

Mr Sohail Hanif Baig Executive Director amp CFO

Ms Farheen Salman Amir Executive Director

Mr Zulfikar Monnoo Non-Executive Director

Mian M Adil Monnoo Non-Executive Director

Mr Kamal Monnoo Non-Executive Director

Mr Badaruddin F Vellani Non-Executive Director

Mr Noman Amjad Lutfi Non-Executive Director

Mr Ali Tariq Non-Executive Director

Company Secretary

Mr Amar Naseer

Audit Committee

Mr Zulfikar Monnoo Chairman amp Member

Mian M Adil Monnoo Member

Mr Badaruddin F Vellani Member

Mr Kamran Y Mirza Member

Ms Mehwish lqbal Secretary amp Head of Internal Audit

Human Resource amp Remuneration Committee

Mr Zulfikar Monnoo Chairman amp Member

Mr Kamal Monnoo Member

Ms Shazia Syed Member

Mr Amar Naseer Company Secretary

Auditors

Messrs KPMG Taseer Hadi amp Co

Chartered Accountants

Sheikh Sultan Trust Building No 2

Beaumont Road Karachi - 75530

Pakistan

Registered Office

Avari Plaza

Fatima Jinnah Road

Karachi - 75530

Share Registration Office

Share Registrar Department

Central Depository Company of Pakistan Limited

CDC House 99-B Block ldquoBrdquo SMCHS

Main Shahra-e-Faisal Karachi - 74400

Website Address

wwwunileverpk

1

UNILEVER PAKISTAN FOODS LIMITED

Directorsrsquo Review

The directors are pleased to present the financial information for the nine months ended September 30 2017

Sales grew by 138 on the back of strong brand equity successful innovations and sustained investment in advertisement and promotion Gross Margin improved by 12 to 464 due to better cost absorptions and efficiencies Earnings per share (EPS) increased by 155 versus the same period last year

Nine Months Financial Highlights ended September 30

Increase2017 2016

Rs lsquo000

Net Sales 8123585 7137950 138

Profit before Taxation 1506013 1285407 172

Profit after Taxation 1067037 923518 155

Earnings per Share (Rs) 17329 14998 155

Future Outlook

Despite challenging economic and operating environment the business has continued to deliver profitable growth We aim to overcome the challenges that lie ahead with our access to global expertise better consumer understanding continuous investment in product lines innovations and world class customer service We are confident that our dedicated and focused efforts will allow us to provide better value to meet consumersrsquo everyday needs and deliver sustained profitable growth

On behalf of the Board

Shazia Syed Kamran Y Mirza

Chief Executive Officer Chairman

Karachi

October 23 2017

2

- -

-

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30 2017

Unaudited Audited September 30 December 31

Note 2017 2016 (Rupees in thousand)

ASSETS

Non-current assets

Property plant and equipment Intangible assets Long term prepayment Long term loans and advances

Current assets

Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - payments less provision Cash and bank balances

Total assets

EQUITY AND LIABILITIES

Capital and reserves

Share capital Reserves

LIABILITIES

Non-current liabilities

Retirement benefits - obligation Deferred taxation

Current liabilities

Trade and other payables Provision Sales tax payable

Total liabilities

Contingencies and commitments

Total equity and liabilities

4 2026091 2084856 81637 81637

-

14240 2605

12302 2121968 2181400

23350 801881 426718 16625 96720 18564 95427

531798

31429 958171 301929

23864 74049 10815

341659 694779

2011083 2436695 4133051

61576 347332 408908

4738 211571

4618095

61576 1743342 1804918

2452 213242

216309

3423504 51500 32830

3507834 3724143

5

6

215694

2424678 57623

115182 2597483 2813177

4133051 4618095

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

3

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Quarter ended Nine Months ended September September September September

30 2017 30 2016 30 2017 30 2016

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Sales 2550246 2246972 8123585 7137950

Cost of sales (1300660) (1177839) (4356951) (3911549)

Gross profit 1249586 1069133 3766634 3226401

Distribution cost (780444) (518858) (2082141) (1760840)

Administrative expenses (32602) (30661) (144386) (147064)

Other operating expenses (31380) (37968) (111843) (95120)

Other income 21164 28351 89356 85064

426324 509997 1517620 1308441

Finance cost 3017 (9390) (11607) (23034)

Profit before taxation 429341 500607 1506013 1285407

Taxation - current (120831) (134970) (440647) (360686) - deferred 1006 (2295) 1671 (1203)

(119825) (137265) (438976) (361889)

Profit after taxation 309516 363342 1067037 923518

Other comprehensive income - - - -

Total comprehensive income 309516 363342 1067037 923518

Basic and diluted earnings per share 5027 5901 17329 14998

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

4

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Note September 30 September 30 2017 2016

(Rupees in thousand)

1506013 1285407

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustment for

Depreciation Mark-up on short term borrowings Provision for staff retirement benefits Return on savings accounts

Effect on cash flow due to working capital changes

Decrease (increase) in current assets Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables

Increase (decrease) in current liabilities

Trade and other payables Provisions Sales tax payable

Cash generated from operations Mark-up paid Income tax paid Long term loans and advances Staff retirement benefits - contributions paid Long term prepayment

Net cash from operating activities

CASH USED IN INVESTING ACTIVITIES

Purchase of property plant and equipment Return received on savings accounts

Net cash used in investing activities

CASH USED IN FINANCING ACTIVITY

Dividends paid

Net (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

122710 11427 2886

(17480) 119543

117446 5172 3582

(16560) 109640

1625556 1395047

8079 156290

(124789) 7239

(22671) (7749)

(10231) (528)

(90326) 4811

(35323) (35932)

16399 (167529)

998826 (6123)

(82352)

(33148) (3551) 40922

910351 4223

2552306 (11427)

(194415) (1938)

(600) 2605

1231741 (5417)

(351425) 24503 (4239)

-

2346531 895163

(63945) 17480

(119841) 16560

(46465)

(2463047)

(103281)

(591131)

(162981)

694779

200751

511576

7 531798 712327

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

5

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated

subscribed premium profit and paid-up

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918

Total comprehensive income for the period

Profit for the nine months ended

September 30 2017 - - - - 1067037 1067037 1067037

Other comprehensive income for the nine months ended September 30 2017 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2017 Rs 122 per share - - - - (751229) (751229) (751229)

Final dividend for the year ending December 31 2016 Rs 278 per share - - - - (1711818) (1711818) (1711818)

Balance as at September 30 2017 61576 24630 628 138 321936 347332 408908

Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594

Total comprehensive income for the period

Profit for the nine months ended

September 30 2016 - - - - 923518 923518 923518

Other comprehensive income for the nine months ended September 30 2016 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2016 Rs 9097 per share - - - - (560159) (560159) (560159)

Final dividend for the year ending December 31 2015 Rs 96 per share - - - - (591131) (591131) (591131)

Balance as at September 30 2016 61576 24630 628 138 1363850 1389246 1450822

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

6

UNILEVER PAKISTAN FOODS LIMITED

SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 - UNAUDITED

1 BASIS OF PREPARATION

This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the nine months ended September 30 2017 has been prepared in accordance with the requirements of the International Accounting Standard No 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance 1984 In case where requirements differ the provisions of or directives issued under the Companies Ordinance 1984 have been followed

The Companies Act 2017 was enacted on 04 October 2017 and SECP vide its circular 23 of 2017 has clarified that the companies whose financial year including interim period closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance 1984 Accordingly this financial information is prepared in accordance with the provision of repealed Companies Ordinance 1984

The financial statements are presented in Pakistan Rupees which is the functional currency of the Company and figures are rounded off to the nearest thousands of Rupees

2 ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31 2016

3 ACCOUNTING ESTIMATES JUDGEMENTS AND FINANCIAL RISK MANGEMENT

The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses Estimates assumptions and judgements are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events Revisions to accounting estimates are recognised prospectively commencing from the period of revision

Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended December 31 2016

The Companyrsquos financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended December 31 2016

4 PROPERTY PLANT AND EQUIPMENT Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Operating assets - at net book value 1910249 1952320 Capital work in progress - at cost 115842 132536

2026091 2084856

7

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

- -

-

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30 2017

Unaudited Audited September 30 December 31

Note 2017 2016 (Rupees in thousand)

ASSETS

Non-current assets

Property plant and equipment Intangible assets Long term prepayment Long term loans and advances

Current assets

Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - payments less provision Cash and bank balances

Total assets

EQUITY AND LIABILITIES

Capital and reserves

Share capital Reserves

LIABILITIES

Non-current liabilities

Retirement benefits - obligation Deferred taxation

Current liabilities

Trade and other payables Provision Sales tax payable

Total liabilities

Contingencies and commitments

Total equity and liabilities

4 2026091 2084856 81637 81637

-

14240 2605

12302 2121968 2181400

23350 801881 426718 16625 96720 18564 95427

531798

31429 958171 301929

23864 74049 10815

341659 694779

2011083 2436695 4133051

61576 347332 408908

4738 211571

4618095

61576 1743342 1804918

2452 213242

216309

3423504 51500 32830

3507834 3724143

5

6

215694

2424678 57623

115182 2597483 2813177

4133051 4618095

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

3

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Quarter ended Nine Months ended September September September September

30 2017 30 2016 30 2017 30 2016

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Sales 2550246 2246972 8123585 7137950

Cost of sales (1300660) (1177839) (4356951) (3911549)

Gross profit 1249586 1069133 3766634 3226401

Distribution cost (780444) (518858) (2082141) (1760840)

Administrative expenses (32602) (30661) (144386) (147064)

Other operating expenses (31380) (37968) (111843) (95120)

Other income 21164 28351 89356 85064

426324 509997 1517620 1308441

Finance cost 3017 (9390) (11607) (23034)

Profit before taxation 429341 500607 1506013 1285407

Taxation - current (120831) (134970) (440647) (360686) - deferred 1006 (2295) 1671 (1203)

(119825) (137265) (438976) (361889)

Profit after taxation 309516 363342 1067037 923518

Other comprehensive income - - - -

Total comprehensive income 309516 363342 1067037 923518

Basic and diluted earnings per share 5027 5901 17329 14998

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

4

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Note September 30 September 30 2017 2016

(Rupees in thousand)

1506013 1285407

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustment for

Depreciation Mark-up on short term borrowings Provision for staff retirement benefits Return on savings accounts

Effect on cash flow due to working capital changes

Decrease (increase) in current assets Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables

Increase (decrease) in current liabilities

Trade and other payables Provisions Sales tax payable

Cash generated from operations Mark-up paid Income tax paid Long term loans and advances Staff retirement benefits - contributions paid Long term prepayment

Net cash from operating activities

CASH USED IN INVESTING ACTIVITIES

Purchase of property plant and equipment Return received on savings accounts

Net cash used in investing activities

CASH USED IN FINANCING ACTIVITY

Dividends paid

Net (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

122710 11427 2886

(17480) 119543

117446 5172 3582

(16560) 109640

1625556 1395047

8079 156290

(124789) 7239

(22671) (7749)

(10231) (528)

(90326) 4811

(35323) (35932)

16399 (167529)

998826 (6123)

(82352)

(33148) (3551) 40922

910351 4223

2552306 (11427)

(194415) (1938)

(600) 2605

1231741 (5417)

(351425) 24503 (4239)

-

2346531 895163

(63945) 17480

(119841) 16560

(46465)

(2463047)

(103281)

(591131)

(162981)

694779

200751

511576

7 531798 712327

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

5

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated

subscribed premium profit and paid-up

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918

Total comprehensive income for the period

Profit for the nine months ended

September 30 2017 - - - - 1067037 1067037 1067037

Other comprehensive income for the nine months ended September 30 2017 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2017 Rs 122 per share - - - - (751229) (751229) (751229)

Final dividend for the year ending December 31 2016 Rs 278 per share - - - - (1711818) (1711818) (1711818)

Balance as at September 30 2017 61576 24630 628 138 321936 347332 408908

Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594

Total comprehensive income for the period

Profit for the nine months ended

September 30 2016 - - - - 923518 923518 923518

Other comprehensive income for the nine months ended September 30 2016 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2016 Rs 9097 per share - - - - (560159) (560159) (560159)

Final dividend for the year ending December 31 2015 Rs 96 per share - - - - (591131) (591131) (591131)

Balance as at September 30 2016 61576 24630 628 138 1363850 1389246 1450822

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

6

UNILEVER PAKISTAN FOODS LIMITED

SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 - UNAUDITED

1 BASIS OF PREPARATION

This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the nine months ended September 30 2017 has been prepared in accordance with the requirements of the International Accounting Standard No 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance 1984 In case where requirements differ the provisions of or directives issued under the Companies Ordinance 1984 have been followed

The Companies Act 2017 was enacted on 04 October 2017 and SECP vide its circular 23 of 2017 has clarified that the companies whose financial year including interim period closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance 1984 Accordingly this financial information is prepared in accordance with the provision of repealed Companies Ordinance 1984

The financial statements are presented in Pakistan Rupees which is the functional currency of the Company and figures are rounded off to the nearest thousands of Rupees

2 ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31 2016

3 ACCOUNTING ESTIMATES JUDGEMENTS AND FINANCIAL RISK MANGEMENT

The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses Estimates assumptions and judgements are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events Revisions to accounting estimates are recognised prospectively commencing from the period of revision

Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended December 31 2016

The Companyrsquos financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended December 31 2016

4 PROPERTY PLANT AND EQUIPMENT Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Operating assets - at net book value 1910249 1952320 Capital work in progress - at cost 115842 132536

2026091 2084856

7

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Quarter ended Nine Months ended September September September September

30 2017 30 2016 30 2017 30 2016

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Sales 2550246 2246972 8123585 7137950

Cost of sales (1300660) (1177839) (4356951) (3911549)

Gross profit 1249586 1069133 3766634 3226401

Distribution cost (780444) (518858) (2082141) (1760840)

Administrative expenses (32602) (30661) (144386) (147064)

Other operating expenses (31380) (37968) (111843) (95120)

Other income 21164 28351 89356 85064

426324 509997 1517620 1308441

Finance cost 3017 (9390) (11607) (23034)

Profit before taxation 429341 500607 1506013 1285407

Taxation - current (120831) (134970) (440647) (360686) - deferred 1006 (2295) 1671 (1203)

(119825) (137265) (438976) (361889)

Profit after taxation 309516 363342 1067037 923518

Other comprehensive income - - - -

Total comprehensive income 309516 363342 1067037 923518

Basic and diluted earnings per share 5027 5901 17329 14998

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

4

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Note September 30 September 30 2017 2016

(Rupees in thousand)

1506013 1285407

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustment for

Depreciation Mark-up on short term borrowings Provision for staff retirement benefits Return on savings accounts

Effect on cash flow due to working capital changes

Decrease (increase) in current assets Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables

Increase (decrease) in current liabilities

Trade and other payables Provisions Sales tax payable

Cash generated from operations Mark-up paid Income tax paid Long term loans and advances Staff retirement benefits - contributions paid Long term prepayment

Net cash from operating activities

CASH USED IN INVESTING ACTIVITIES

Purchase of property plant and equipment Return received on savings accounts

Net cash used in investing activities

CASH USED IN FINANCING ACTIVITY

Dividends paid

Net (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

122710 11427 2886

(17480) 119543

117446 5172 3582

(16560) 109640

1625556 1395047

8079 156290

(124789) 7239

(22671) (7749)

(10231) (528)

(90326) 4811

(35323) (35932)

16399 (167529)

998826 (6123)

(82352)

(33148) (3551) 40922

910351 4223

2552306 (11427)

(194415) (1938)

(600) 2605

1231741 (5417)

(351425) 24503 (4239)

-

2346531 895163

(63945) 17480

(119841) 16560

(46465)

(2463047)

(103281)

(591131)

(162981)

694779

200751

511576

7 531798 712327

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

5

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated

subscribed premium profit and paid-up

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918

Total comprehensive income for the period

Profit for the nine months ended

September 30 2017 - - - - 1067037 1067037 1067037

Other comprehensive income for the nine months ended September 30 2017 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2017 Rs 122 per share - - - - (751229) (751229) (751229)

Final dividend for the year ending December 31 2016 Rs 278 per share - - - - (1711818) (1711818) (1711818)

Balance as at September 30 2017 61576 24630 628 138 321936 347332 408908

Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594

Total comprehensive income for the period

Profit for the nine months ended

September 30 2016 - - - - 923518 923518 923518

Other comprehensive income for the nine months ended September 30 2016 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2016 Rs 9097 per share - - - - (560159) (560159) (560159)

Final dividend for the year ending December 31 2015 Rs 96 per share - - - - (591131) (591131) (591131)

Balance as at September 30 2016 61576 24630 628 138 1363850 1389246 1450822

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

6

UNILEVER PAKISTAN FOODS LIMITED

SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 - UNAUDITED

1 BASIS OF PREPARATION

This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the nine months ended September 30 2017 has been prepared in accordance with the requirements of the International Accounting Standard No 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance 1984 In case where requirements differ the provisions of or directives issued under the Companies Ordinance 1984 have been followed

The Companies Act 2017 was enacted on 04 October 2017 and SECP vide its circular 23 of 2017 has clarified that the companies whose financial year including interim period closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance 1984 Accordingly this financial information is prepared in accordance with the provision of repealed Companies Ordinance 1984

The financial statements are presented in Pakistan Rupees which is the functional currency of the Company and figures are rounded off to the nearest thousands of Rupees

2 ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31 2016

3 ACCOUNTING ESTIMATES JUDGEMENTS AND FINANCIAL RISK MANGEMENT

The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses Estimates assumptions and judgements are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events Revisions to accounting estimates are recognised prospectively commencing from the period of revision

Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended December 31 2016

The Companyrsquos financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended December 31 2016

4 PROPERTY PLANT AND EQUIPMENT Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Operating assets - at net book value 1910249 1952320 Capital work in progress - at cost 115842 132536

2026091 2084856

7

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM CASH FLOW STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

Note September 30 September 30 2017 2016

(Rupees in thousand)

1506013 1285407

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustment for

Depreciation Mark-up on short term borrowings Provision for staff retirement benefits Return on savings accounts

Effect on cash flow due to working capital changes

Decrease (increase) in current assets Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables

Increase (decrease) in current liabilities

Trade and other payables Provisions Sales tax payable

Cash generated from operations Mark-up paid Income tax paid Long term loans and advances Staff retirement benefits - contributions paid Long term prepayment

Net cash from operating activities

CASH USED IN INVESTING ACTIVITIES

Purchase of property plant and equipment Return received on savings accounts

Net cash used in investing activities

CASH USED IN FINANCING ACTIVITY

Dividends paid

Net (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

122710 11427 2886

(17480) 119543

117446 5172 3582

(16560) 109640

1625556 1395047

8079 156290

(124789) 7239

(22671) (7749)

(10231) (528)

(90326) 4811

(35323) (35932)

16399 (167529)

998826 (6123)

(82352)

(33148) (3551) 40922

910351 4223

2552306 (11427)

(194415) (1938)

(600) 2605

1231741 (5417)

(351425) 24503 (4239)

-

2346531 895163

(63945) 17480

(119841) 16560

(46465)

(2463047)

(103281)

(591131)

(162981)

694779

200751

511576

7 531798 712327

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

5

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated

subscribed premium profit and paid-up

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918

Total comprehensive income for the period

Profit for the nine months ended

September 30 2017 - - - - 1067037 1067037 1067037

Other comprehensive income for the nine months ended September 30 2017 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2017 Rs 122 per share - - - - (751229) (751229) (751229)

Final dividend for the year ending December 31 2016 Rs 278 per share - - - - (1711818) (1711818) (1711818)

Balance as at September 30 2017 61576 24630 628 138 321936 347332 408908

Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594

Total comprehensive income for the period

Profit for the nine months ended

September 30 2016 - - - - 923518 923518 923518

Other comprehensive income for the nine months ended September 30 2016 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2016 Rs 9097 per share - - - - (560159) (560159) (560159)

Final dividend for the year ending December 31 2015 Rs 96 per share - - - - (591131) (591131) (591131)

Balance as at September 30 2016 61576 24630 628 138 1363850 1389246 1450822

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

6

UNILEVER PAKISTAN FOODS LIMITED

SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 - UNAUDITED

1 BASIS OF PREPARATION

This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the nine months ended September 30 2017 has been prepared in accordance with the requirements of the International Accounting Standard No 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance 1984 In case where requirements differ the provisions of or directives issued under the Companies Ordinance 1984 have been followed

The Companies Act 2017 was enacted on 04 October 2017 and SECP vide its circular 23 of 2017 has clarified that the companies whose financial year including interim period closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance 1984 Accordingly this financial information is prepared in accordance with the provision of repealed Companies Ordinance 1984

The financial statements are presented in Pakistan Rupees which is the functional currency of the Company and figures are rounded off to the nearest thousands of Rupees

2 ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31 2016

3 ACCOUNTING ESTIMATES JUDGEMENTS AND FINANCIAL RISK MANGEMENT

The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses Estimates assumptions and judgements are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events Revisions to accounting estimates are recognised prospectively commencing from the period of revision

Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended December 31 2016

The Companyrsquos financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended December 31 2016

4 PROPERTY PLANT AND EQUIPMENT Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Operating assets - at net book value 1910249 1952320 Capital work in progress - at cost 115842 132536

2026091 2084856

7

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

UNILEVER PAKISTAN FOODS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 (UNAUDITED)

SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated

subscribed premium profit and paid-up

---------------------------------------------- (Rupees in thousand) -----------------------------------------

Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918

Total comprehensive income for the period

Profit for the nine months ended

September 30 2017 - - - - 1067037 1067037 1067037

Other comprehensive income for the nine months ended September 30 2017 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2017 Rs 122 per share - - - - (751229) (751229) (751229)

Final dividend for the year ending December 31 2016 Rs 278 per share - - - - (1711818) (1711818) (1711818)

Balance as at September 30 2017 61576 24630 628 138 321936 347332 408908

Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594

Total comprehensive income for the period

Profit for the nine months ended

September 30 2016 - - - - 923518 923518 923518

Other comprehensive income for the nine months ended September 30 2016 - - - - - - -

Transactions with owners of the Company

Interim dividend for the year ending December 31 2016 Rs 9097 per share - - - - (560159) (560159) (560159)

Final dividend for the year ending December 31 2015 Rs 96 per share - - - - (591131) (591131) (591131)

Balance as at September 30 2016 61576 24630 628 138 1363850 1389246 1450822

The annexed notes 1 to 10 form an integral part of this condensed interim financial information

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

6

UNILEVER PAKISTAN FOODS LIMITED

SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 - UNAUDITED

1 BASIS OF PREPARATION

This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the nine months ended September 30 2017 has been prepared in accordance with the requirements of the International Accounting Standard No 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance 1984 In case where requirements differ the provisions of or directives issued under the Companies Ordinance 1984 have been followed

The Companies Act 2017 was enacted on 04 October 2017 and SECP vide its circular 23 of 2017 has clarified that the companies whose financial year including interim period closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance 1984 Accordingly this financial information is prepared in accordance with the provision of repealed Companies Ordinance 1984

The financial statements are presented in Pakistan Rupees which is the functional currency of the Company and figures are rounded off to the nearest thousands of Rupees

2 ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31 2016

3 ACCOUNTING ESTIMATES JUDGEMENTS AND FINANCIAL RISK MANGEMENT

The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses Estimates assumptions and judgements are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events Revisions to accounting estimates are recognised prospectively commencing from the period of revision

Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended December 31 2016

The Companyrsquos financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended December 31 2016

4 PROPERTY PLANT AND EQUIPMENT Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Operating assets - at net book value 1910249 1952320 Capital work in progress - at cost 115842 132536

2026091 2084856

7

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

UNILEVER PAKISTAN FOODS LIMITED

SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 2017 - UNAUDITED

1 BASIS OF PREPARATION

This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the nine months ended September 30 2017 has been prepared in accordance with the requirements of the International Accounting Standard No 34 -Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance 1984 In case where requirements differ the provisions of or directives issued under the Companies Ordinance 1984 have been followed

The Companies Act 2017 was enacted on 04 October 2017 and SECP vide its circular 23 of 2017 has clarified that the companies whose financial year including interim period closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance 1984 Accordingly this financial information is prepared in accordance with the provision of repealed Companies Ordinance 1984

The financial statements are presented in Pakistan Rupees which is the functional currency of the Company and figures are rounded off to the nearest thousands of Rupees

2 ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31 2016

3 ACCOUNTING ESTIMATES JUDGEMENTS AND FINANCIAL RISK MANGEMENT

The preparation of this condensed interim financial information in conformity with approved accounting standards requires management to make estimates assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses Estimates assumptions and judgements are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events Revisions to accounting estimates are recognised prospectively commencing from the period of revision

Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended December 31 2016

The Companyrsquos financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended December 31 2016

4 PROPERTY PLANT AND EQUIPMENT Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Operating assets - at net book value 1910249 1952320 Capital work in progress - at cost 115842 132536

2026091 2084856

7

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

80

41 Additions of operating assets during the period are as follows

Additions (at cost)

Unaudited Unaudited September 30 September 30

2017 2016 (Rupees in thousand)

Building on freehold land 25819 13361

Plant and machinery 51462 72034

Electrical mechanical and office equipment 3357

80639 85475

5 PROVISIONS Unaudited Audited September 30December 31

2017 2016 (Rupees in thousand)

Sindh Infrastructure Cess 51 30212 25417 Restructuring 21288 32206

51500 57623

51 The change represents provision made during the period

6 CONTINGENCIES AND COMMITMENTS

61 Contingencies

There has been no change in status of contingency reported in the financial statements for the year ended December 31 2016

62 Commitments

The commitments for capital expenditure outstanding as at September 30 2017 amounted to Rs 922 million (December 31 2016 Rs 3481 million)

7 CASH AND CASH EQUIVALENTS Unaudited Unaudited

Sep 30 Sep 30

2017 2016

(Rupees in thousand)

Cash and bank balances 531798 712327 531798 712327

8

8

9

10

RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

8

9

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RELATED PARTY TRANSACTIONS

Related party transactions during the period are as follows

Relationship with Nature of transactions Sep 30 Sep 30 the company 2017 2016

(Rupees in thousand)

i) Holding company Royalty 160227 121180

ii) Other related parties Technology fee 169233 131279

Purchase of goods 1616369 1144770 Sale of goods 146410 115050 Fee for receiving of services

from related parties 209997 194464

Fee for providing of services to related parties 63954 43002

Contribution to - Defined Contribution plan - Defined Benefit plans

14400 5420

15294 3513

Settlement on behalf of - Defined Contribution plan 16114 27826 - Defined Benefit plans - 2171

iii) Key management personnel Salaries and other short-term

employee benefits 8209 5388

DIVIDEND

The Board of Directors in its meeting held on October 23 2017 declared second interim cash dividend in respect of Quarter ended September 30 2017 of Rs 5000 per share amounting to Rs 30788 million Together with the first interim dividend 2017 of Rs 12200 per share (already paid) the total cumulative dividend upto the Third Quarter ended September 30 2017 is Rs 17200 per share amounting to Rs 105911 million (Total cumulative dividend upto the Third Quarter ended September 30 2016 Rs 9097 per share amounting to Rs 56016 million)

This condensed interim financial information does not reflect the second interim dividend as payable which will be accounted for in the statements of changes in equity as an appropriation from the unappropriated profit in the year ending December 31 2017

DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 23 2017 by the Board of Directors of the Company

Shazia Syed Farheen Salman Amir Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer

9

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