13
UNILEVER PAKISTAN FOODS LIMITED CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF VEAR ENDED JUNE 30, 2017
UNILEVER PAKISTAN FOODS LIMITED CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE HALF VEAR ENDED JUNE 30 2017
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 six months ended June 30 2017
Sales grew by 14 on the back of strong brand equity successful innovations and sustained investment in advertisement and promotion Gross Margin improved by 11 to 452 due to better cost absorptions and efficiencies Earnings per share (EPS) increased by 352 versus the same period last year
Six Months
Financial Highlights ended June 30
201 7 201 6 Increase
Rs lsquo000
Net Sales
Profit before Taxation
Profit after Taxation
Earnings per Share (Rs)
5573339
1076670
757519
12302
4890978
784800
560176
9097
140
372
352
352
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 deeper consumer understanding powerful innovations and world class customer service Our focus and efforts will continue to offer better value to consumers
On behalf of the Board
Kamran Y Mirza Chariman
Karachi August 24 2017
2
UNILEVER PAKISTAN FOODS LIMITED
Auditorsrsquo Report to the Members on Review of Interim Financial Information
Introduction
We have reviewed the accompanying condensed interim balance sheet of Unilever Pakistan Foods Limited (ldquothe Companyrdquo) as at 30 June 2017 and the related condensed interim profit and loss account condensed interim cash flow statement condensed interim statement of changes in equity and notes to the accounts for the half year then ended (here-in-after referred to as the ldquointerim financial informationrdquo) Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting Our responsibility is to express a conclusion on this interim financial information based on our review
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures A review is substantially 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 interim financial information is not prepared in all material respects in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting
Other matters
The figures of the condensed interim profit and loss account for the quarter ended 30 June 2017 have not been reviewed and we do not express a conclusion on them
Date 24 August 2017 KPMG Taseer Hadi amp Co
Chartered Accountants Mohammad Mahmood HussainKarachi
3
- -
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM BALANCE SHEET AS AT JUNE 30 2017
Unaudited Audited June 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
4 2041093 81637
-
13650 2136380
2084856 81637 2605
12302 2181400
Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - net Cash and bank balances
Total assets
28492 818450 570726 16902 73932 4931
169217 117866
1800516 3936896
31429 958171 301929 23864 74049 10815
341659 694779
2436695 4618095
EQUITY AND LIABILITIES
Share capital and reserves Share capital Reserves
LIABILITIES
61576 789043 850619
61576 1743342 1804918
Non-current liabilities
Staff retirement benefits Deferred taxation
Current liabilities
3976 212576 216552
2452 213242 215694
Trade and other payables Provisions Accrued interest mark-up Sales tax payable
Total liabilities
5 2776912
53285 1999
37529 2869725 3086277
2424678 57623
-
115182 2597483 2813177
Total equity and liabilities 3936896 4618095
Contingency and commitments 6
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
4
~II II II~
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Quarter ended Half year ended Note June 30
2017 June 30
2016 June 30
2017 June 30
2016
---------------------- (Rupees in thousand) ----------------------
Sales 2804317 2524244 5573339 4890978
Cost of sales (1561775) (1403971) (3056294) (2733710)
Gross profit 1242542 1120273 2517045 2157268
Distribution cost (730321) (742797) (1301697) (1241982)
Administrative expenses (65435) (76482) (111784) (116403)
Other operating expenses (32664) (18805) (80463) (57152)
Other income 38644 31491 68193 56713
452766 313680 1091294 798444
Finance cost (12817) (6497) (14624) (13644)
Profit before taxation 439949 307183 1076670 784800
Taxation - current (146389) (110695) (319816) (225716) - deferred 2139 12189 665 1092
(144250) (98506) (319151) (224624)
Profit after taxation 295699 208677 757519 560176
Other comprehensive income - - - -
Total comprehensive income 295699 208677 757519 560176
------------------------------- (Rupees) -------------------------------
Basic and diluted earnings per share 4802 3389 12302 9097
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
5
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
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 six months ended June 30 2017
Sales grew by 14 on the back of strong brand equity successful innovations and sustained investment in advertisement and promotion Gross Margin improved by 11 to 452 due to better cost absorptions and efficiencies Earnings per share (EPS) increased by 352 versus the same period last year
Six Months
Financial Highlights ended June 30
201 7 201 6 Increase
Rs lsquo000
Net Sales
Profit before Taxation
Profit after Taxation
Earnings per Share (Rs)
5573339
1076670
757519
12302
4890978
784800
560176
9097
140
372
352
352
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 deeper consumer understanding powerful innovations and world class customer service Our focus and efforts will continue to offer better value to consumers
On behalf of the Board
Kamran Y Mirza Chariman
Karachi August 24 2017
2
UNILEVER PAKISTAN FOODS LIMITED
Auditorsrsquo Report to the Members on Review of Interim Financial Information
Introduction
We have reviewed the accompanying condensed interim balance sheet of Unilever Pakistan Foods Limited (ldquothe Companyrdquo) as at 30 June 2017 and the related condensed interim profit and loss account condensed interim cash flow statement condensed interim statement of changes in equity and notes to the accounts for the half year then ended (here-in-after referred to as the ldquointerim financial informationrdquo) Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting Our responsibility is to express a conclusion on this interim financial information based on our review
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures A review is substantially 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 interim financial information is not prepared in all material respects in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting
Other matters
The figures of the condensed interim profit and loss account for the quarter ended 30 June 2017 have not been reviewed and we do not express a conclusion on them
Date 24 August 2017 KPMG Taseer Hadi amp Co
Chartered Accountants Mohammad Mahmood HussainKarachi
3
- -
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM BALANCE SHEET AS AT JUNE 30 2017
Unaudited Audited June 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
4 2041093 81637
-
13650 2136380
2084856 81637 2605
12302 2181400
Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - net Cash and bank balances
Total assets
28492 818450 570726 16902 73932 4931
169217 117866
1800516 3936896
31429 958171 301929 23864 74049 10815
341659 694779
2436695 4618095
EQUITY AND LIABILITIES
Share capital and reserves Share capital Reserves
LIABILITIES
61576 789043 850619
61576 1743342 1804918
Non-current liabilities
Staff retirement benefits Deferred taxation
Current liabilities
3976 212576 216552
2452 213242 215694
Trade and other payables Provisions Accrued interest mark-up Sales tax payable
Total liabilities
5 2776912
53285 1999
37529 2869725 3086277
2424678 57623
-
115182 2597483 2813177
Total equity and liabilities 3936896 4618095
Contingency and commitments 6
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
4
~II II II~
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Quarter ended Half year ended Note June 30
2017 June 30
2016 June 30
2017 June 30
2016
---------------------- (Rupees in thousand) ----------------------
Sales 2804317 2524244 5573339 4890978
Cost of sales (1561775) (1403971) (3056294) (2733710)
Gross profit 1242542 1120273 2517045 2157268
Distribution cost (730321) (742797) (1301697) (1241982)
Administrative expenses (65435) (76482) (111784) (116403)
Other operating expenses (32664) (18805) (80463) (57152)
Other income 38644 31491 68193 56713
452766 313680 1091294 798444
Finance cost (12817) (6497) (14624) (13644)
Profit before taxation 439949 307183 1076670 784800
Taxation - current (146389) (110695) (319816) (225716) - deferred 2139 12189 665 1092
(144250) (98506) (319151) (224624)
Profit after taxation 295699 208677 757519 560176
Other comprehensive income - - - -
Total comprehensive income 295699 208677 757519 560176
------------------------------- (Rupees) -------------------------------
Basic and diluted earnings per share 4802 3389 12302 9097
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
5
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
UNILEVER PAKISTAN FOODS LIMITED
Directorsrsquo Review
The directors are pleased to present the financial information for the six months ended June 30 2017
Sales grew by 14 on the back of strong brand equity successful innovations and sustained investment in advertisement and promotion Gross Margin improved by 11 to 452 due to better cost absorptions and efficiencies Earnings per share (EPS) increased by 352 versus the same period last year
Six Months
Financial Highlights ended June 30
201 7 201 6 Increase
Rs lsquo000
Net Sales
Profit before Taxation
Profit after Taxation
Earnings per Share (Rs)
5573339
1076670
757519
12302
4890978
784800
560176
9097
140
372
352
352
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 deeper consumer understanding powerful innovations and world class customer service Our focus and efforts will continue to offer better value to consumers
On behalf of the Board
Kamran Y Mirza Chariman
Karachi August 24 2017
2
UNILEVER PAKISTAN FOODS LIMITED
Auditorsrsquo Report to the Members on Review of Interim Financial Information
Introduction
We have reviewed the accompanying condensed interim balance sheet of Unilever Pakistan Foods Limited (ldquothe Companyrdquo) as at 30 June 2017 and the related condensed interim profit and loss account condensed interim cash flow statement condensed interim statement of changes in equity and notes to the accounts for the half year then ended (here-in-after referred to as the ldquointerim financial informationrdquo) Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting Our responsibility is to express a conclusion on this interim financial information based on our review
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures A review is substantially 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 interim financial information is not prepared in all material respects in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting
Other matters
The figures of the condensed interim profit and loss account for the quarter ended 30 June 2017 have not been reviewed and we do not express a conclusion on them
Date 24 August 2017 KPMG Taseer Hadi amp Co
Chartered Accountants Mohammad Mahmood HussainKarachi
3
- -
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM BALANCE SHEET AS AT JUNE 30 2017
Unaudited Audited June 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
4 2041093 81637
-
13650 2136380
2084856 81637 2605
12302 2181400
Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - net Cash and bank balances
Total assets
28492 818450 570726 16902 73932 4931
169217 117866
1800516 3936896
31429 958171 301929 23864 74049 10815
341659 694779
2436695 4618095
EQUITY AND LIABILITIES
Share capital and reserves Share capital Reserves
LIABILITIES
61576 789043 850619
61576 1743342 1804918
Non-current liabilities
Staff retirement benefits Deferred taxation
Current liabilities
3976 212576 216552
2452 213242 215694
Trade and other payables Provisions Accrued interest mark-up Sales tax payable
Total liabilities
5 2776912
53285 1999
37529 2869725 3086277
2424678 57623
-
115182 2597483 2813177
Total equity and liabilities 3936896 4618095
Contingency and commitments 6
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
4
~II II II~
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Quarter ended Half year ended Note June 30
2017 June 30
2016 June 30
2017 June 30
2016
---------------------- (Rupees in thousand) ----------------------
Sales 2804317 2524244 5573339 4890978
Cost of sales (1561775) (1403971) (3056294) (2733710)
Gross profit 1242542 1120273 2517045 2157268
Distribution cost (730321) (742797) (1301697) (1241982)
Administrative expenses (65435) (76482) (111784) (116403)
Other operating expenses (32664) (18805) (80463) (57152)
Other income 38644 31491 68193 56713
452766 313680 1091294 798444
Finance cost (12817) (6497) (14624) (13644)
Profit before taxation 439949 307183 1076670 784800
Taxation - current (146389) (110695) (319816) (225716) - deferred 2139 12189 665 1092
(144250) (98506) (319151) (224624)
Profit after taxation 295699 208677 757519 560176
Other comprehensive income - - - -
Total comprehensive income 295699 208677 757519 560176
------------------------------- (Rupees) -------------------------------
Basic and diluted earnings per share 4802 3389 12302 9097
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
5
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
UNILEVER PAKISTAN FOODS LIMITED
Auditorsrsquo Report to the Members on Review of Interim Financial Information
Introduction
We have reviewed the accompanying condensed interim balance sheet of Unilever Pakistan Foods Limited (ldquothe Companyrdquo) as at 30 June 2017 and the related condensed interim profit and loss account condensed interim cash flow statement condensed interim statement of changes in equity and notes to the accounts for the half year then ended (here-in-after referred to as the ldquointerim financial informationrdquo) Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting Our responsibility is to express a conclusion on this interim financial information based on our review
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures A review is substantially 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 interim financial information is not prepared in all material respects in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting
Other matters
The figures of the condensed interim profit and loss account for the quarter ended 30 June 2017 have not been reviewed and we do not express a conclusion on them
Date 24 August 2017 KPMG Taseer Hadi amp Co
Chartered Accountants Mohammad Mahmood HussainKarachi
3
- -
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM BALANCE SHEET AS AT JUNE 30 2017
Unaudited Audited June 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
4 2041093 81637
-
13650 2136380
2084856 81637 2605
12302 2181400
Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - net Cash and bank balances
Total assets
28492 818450 570726 16902 73932 4931
169217 117866
1800516 3936896
31429 958171 301929 23864 74049 10815
341659 694779
2436695 4618095
EQUITY AND LIABILITIES
Share capital and reserves Share capital Reserves
LIABILITIES
61576 789043 850619
61576 1743342 1804918
Non-current liabilities
Staff retirement benefits Deferred taxation
Current liabilities
3976 212576 216552
2452 213242 215694
Trade and other payables Provisions Accrued interest mark-up Sales tax payable
Total liabilities
5 2776912
53285 1999
37529 2869725 3086277
2424678 57623
-
115182 2597483 2813177
Total equity and liabilities 3936896 4618095
Contingency and commitments 6
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
4
~II II II~
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Quarter ended Half year ended Note June 30
2017 June 30
2016 June 30
2017 June 30
2016
---------------------- (Rupees in thousand) ----------------------
Sales 2804317 2524244 5573339 4890978
Cost of sales (1561775) (1403971) (3056294) (2733710)
Gross profit 1242542 1120273 2517045 2157268
Distribution cost (730321) (742797) (1301697) (1241982)
Administrative expenses (65435) (76482) (111784) (116403)
Other operating expenses (32664) (18805) (80463) (57152)
Other income 38644 31491 68193 56713
452766 313680 1091294 798444
Finance cost (12817) (6497) (14624) (13644)
Profit before taxation 439949 307183 1076670 784800
Taxation - current (146389) (110695) (319816) (225716) - deferred 2139 12189 665 1092
(144250) (98506) (319151) (224624)
Profit after taxation 295699 208677 757519 560176
Other comprehensive income - - - -
Total comprehensive income 295699 208677 757519 560176
------------------------------- (Rupees) -------------------------------
Basic and diluted earnings per share 4802 3389 12302 9097
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
5
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
- -
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM BALANCE SHEET AS AT JUNE 30 2017
Unaudited Audited June 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
4 2041093 81637
-
13650 2136380
2084856 81637 2605
12302 2181400
Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - net Cash and bank balances
Total assets
28492 818450 570726 16902 73932 4931
169217 117866
1800516 3936896
31429 958171 301929 23864 74049 10815
341659 694779
2436695 4618095
EQUITY AND LIABILITIES
Share capital and reserves Share capital Reserves
LIABILITIES
61576 789043 850619
61576 1743342 1804918
Non-current liabilities
Staff retirement benefits Deferred taxation
Current liabilities
3976 212576 216552
2452 213242 215694
Trade and other payables Provisions Accrued interest mark-up Sales tax payable
Total liabilities
5 2776912
53285 1999
37529 2869725 3086277
2424678 57623
-
115182 2597483 2813177
Total equity and liabilities 3936896 4618095
Contingency and commitments 6
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
4
~II II II~
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Quarter ended Half year ended Note June 30
2017 June 30
2016 June 30
2017 June 30
2016
---------------------- (Rupees in thousand) ----------------------
Sales 2804317 2524244 5573339 4890978
Cost of sales (1561775) (1403971) (3056294) (2733710)
Gross profit 1242542 1120273 2517045 2157268
Distribution cost (730321) (742797) (1301697) (1241982)
Administrative expenses (65435) (76482) (111784) (116403)
Other operating expenses (32664) (18805) (80463) (57152)
Other income 38644 31491 68193 56713
452766 313680 1091294 798444
Finance cost (12817) (6497) (14624) (13644)
Profit before taxation 439949 307183 1076670 784800
Taxation - current (146389) (110695) (319816) (225716) - deferred 2139 12189 665 1092
(144250) (98506) (319151) (224624)
Profit after taxation 295699 208677 757519 560176
Other comprehensive income - - - -
Total comprehensive income 295699 208677 757519 560176
------------------------------- (Rupees) -------------------------------
Basic and diluted earnings per share 4802 3389 12302 9097
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
5
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
~II II II~
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Quarter ended Half year ended Note June 30
2017 June 30
2016 June 30
2017 June 30
2016
---------------------- (Rupees in thousand) ----------------------
Sales 2804317 2524244 5573339 4890978
Cost of sales (1561775) (1403971) (3056294) (2733710)
Gross profit 1242542 1120273 2517045 2157268
Distribution cost (730321) (742797) (1301697) (1241982)
Administrative expenses (65435) (76482) (111784) (116403)
Other operating expenses (32664) (18805) (80463) (57152)
Other income 38644 31491 68193 56713
452766 313680 1091294 798444
Finance cost (12817) (6497) (14624) (13644)
Profit before taxation 439949 307183 1076670 784800
Taxation - current (146389) (110695) (319816) (225716) - deferred 2139 12189 665 1092
(144250) (98506) (319151) (224624)
Profit after taxation 295699 208677 757519 560176
Other comprehensive income - - - -
Total comprehensive income 295699 208677 757519 560176
------------------------------- (Rupees) -------------------------------
Basic and diluted earnings per share 4802 3389 12302 9097
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
5
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
DD
DD
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
Note June 30 June 30
2017 2016
(Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1076670 784800
Adjustment for
Depreciation 81700 77726 Mark-up on short term borrowings 6574 3293 Provision for staff retirement benefits 1924 2025 Return on savings accounts (14479) (14367)
75719 68677 1152389 853477
Effect on cash flow due to working capital changes
Decrease (increase) in current assets Stores and spares 2937 (8175) Stock in trade 139721 63709 Trade debts (268797) (169998) Loans and advances 6962 (4033) Trade deposits and short term prepayments 117 (32318) Other receivables 5884 (38478)
(113176) (189293)
Increase (decrease) in current liabilities
Trade and other payables 319848 188974 Provisions (4338) (3851) Sales tax payable (77653) (20190)
237857 164933
Cash generated from operations 1277070 829117 Mark-up paid (4575) (3633) Income tax paid (147374) (255483) Increase in long term loans (1348) 24793 Staff retirement benefits - contribution (400) (3513) Long term prepayment 2605 -
Net cash from operating activities 1125978 591281
CASH USED IN INVESTING ACTIVITIES
Purchase of property plant and equipment (37937) (76606) Return received on savings accounts 14479 14367
Net cash used in investing activities (23458) (62239)
CASH USED IN FINANCING ACTIVITY
Dividends paid (1679433) (591131)
Net (decrease) in cash and cash equivalents (576913) (62089)
Cash and cash equivalents at beginning of the period 694779 511576
Cash and cash equivalents at end of the period 7 117866 449487
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
6
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
UNILEVER PAKISTAN FOODS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE Sub Total Issued Share Special General Unappropriated
subscribed premium profit and paid-up
capital
-------------------------------------------- (Rupees in thousand) --------------------------------------------
Balance as at January 1 2017 61576 24630 628 138 1717946 1743342 1804918
Transactions with owners of the Company
Final dividend for the year ended December 31 2016 Rs 278 - - - - (1711818) (1711818) (1711818) per share
Total comprehensive income for the period
Profit for the half year ended
June 30 2017 - - - - 757519 757519 757519
Other comprehensive income for the half year ended June 30 2017 - - - - - - -
Balance as at June 30 2017 61576 24630 628 138 763647 789043 850619
Balance as at January 1 2016 61576 24630 628 138 1591622 1617018 1678594
Transactions with owners of the Company
Final dividend for the year ended December 31 2015 Rs 96 - - - - (591131) (591131) (591131) per share
Total comprehensive income for the period Profit for the half year ended
June 30 2016 - - - - 560176 560176 560176
Other comprehensive income for the half year ended June 30 2016 - - - - - - -
Balance as at June 30 2016 61576 24630 628 138 1560667 1586063 1647639
The annexed notes 1 to 10 form an integral part of this condensed interim financial information
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
7
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
UNILEVER PAKISTAN FOODS LIMITED
SELECTED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED JUNE 30 2017 - UNAUDITED
1 BASIS OF PREPARATION
This condensed interim financial information of Unilever Pakistan Foods Limited (the Company) for the half year ended June 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 May 30 2017 and SECP vide its circular 17 of 2017 has clarified that the companies whose financial year including interim period closes on or before June 30 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 MANAGEMENT
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 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 June 30 December 31
2017 2016 (Rupees in thousand)
Operating assets - at net book value 1905289 1952320 Capital work in progress - at cost 135804 132536
2041093 2084856
8
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
80
41 Additions of operating assets during the period are as follows Additions (at cost)
June 30 June 30Note
2017 2016 (Rupees in thousand)
Building on freehold land 6295 13361 Plant and machinery 25017 72034 Electrical mechanical and office equipment 3357
34669 85475
5 PROVISIONS Unaudited Audited June 30 December 31
2017 2016 (Rupees in thousand)
Sindh Infrastructure Cess 51 28388 25417 Restructuring 24897 32206
53285 57623
51 The change represents provision made during the period
6 CONTINGENCY AND COMMITMENTS
61 Contingency
There was no contingency as of 30 June 2017
62 Commitments
The commitments for capital expenditure outstanding as at June 30 2017 amounted to Rs 3234 million (December 31 2016 Rs 3481 million)
7 CASH AND CASH EQUIVALENTS Unaudited Unaudited
June 30 June 30
2017 2016
(Rupees in thousand)
Cash and bank balances 117866 506090 Short term borrowings - (56603)
117866 449487
9
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
8 RELATED PARTY TRANSACTIONS
Related party transactions during the period are as follows
Relationship with Nature of transactions Unaudited Unaudited
the company June 30 June 30
2017 2016
(Rupees in thousand)
i) Holding company Royalty 98171 87637
ii) Other related parties Technology fee 103155 86101
Purchase of goods 850872 808660 Sale of goods 120640 60003 Fee for receiving services
from related parties 153950 142818
Fee for providing services to related parties 30238 28051
Contribution to - Defined Contribution plan 9206 8529 - Defined Benefit plans 5420 3513
Settlement (receipt) on behalf of - Defined Contribution plan 8680 24913 - Defined Benefit plans - 1447
iii) Key management Salaries and other short-term personnel employee benefits 7803 3606
9 INTERIM DIVIDEND
The Board of Directors in its meeting held on August 24 2017 declared an interim cash dividend of Rs 12200 per share (December 31 2016 Rs 9097 per share) for the year ending December 31 2017 amounting to Rs 75123 million (December 31 2016 Rs 56016 million)
This condensed interim financial information does not reflect the interim dividend as payable which will be accounted for in the statement of changes in equity as an appropriation from the unappropriated profit in the nine months ending September 30 2017
10 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on August 24 2017 by the Board of Directors of the Company
Shazia Syed Farheen Salman Sohail Hanif Baig Chief Executive Director Director amp Chief Financial Officer
10
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
PYJJ1~Lf1~Jl~1_51J)f((pound(j-J11J~JJ~IJ1J(I JJ ~ J 0 1- fJ1 w JI (5 Jf 0 J t 1-J_ -Jt Ji(JA=-Lr J
-~~ L1 ~Lf L~JJu-Jv f Jj-- r~J-1JtJh(iJJf~Ji Jf ud
LJ~
LJ~
gtJj
e~J~~ t~~L~
(LJ~)j4f~j
IJ~1(
tfJi
۲۰۱۷
140
111 452
352
۳۰ ن
۳۰ ن ہ ۳۰ ن ہ
ل2016 2017
lsquo000 ل
2016 2017 lsquo000
111 2524244 2804317 14 4890978 5573339
432 307183 439949 372 784800 1076670
417 208677 295698 352 560176 757519
417 3389 4802 352 9097 12302
ادى ت اور ود رور رد رف
اور رچ ا ڈ ت اور وس آ وا ت
د آز ں رى ر زں ا ت اور ا ط
اے رى و رى ر
ا 2017
11
24
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
Unilever Pakistan Foods Limited Avari Plaza Fatima Jinnah Road Karachi-75530 T +92 21 35660062-9
wwwunileverpk F +92 21 35681705
