Unilever Pakistan Foods Limited Annual Report

2020

Contents

Vision & Core Values 02

Company Information 03

Directors’ Profile 04

Chairman's Review 06

Directors’ Report 08

Board Meetings Attendance 15

Board Committee Meetings Held During the Year 15

Performance Indicators for 6 years 17

Statement of Financial Position - Analysis for 6 years 20

Profit or Loss Account and other Comprehensive 22 Income - Analysis for 6 years

Statement of Wealth Generated and Distributed 24

Pattern of Shareholding 25

Statement of Compliance with 27 the Code of Corporate Governance

Independent Auditor's Review Report 28

Financial Statements 29

Notice of Annual General Meeting 80

Form of Proxy 86

Dividend Mandate Form 88 Unilever Pakistan Foods Limited - Annual Report 2020 02 Making a World Better Wowing our Wowing & Consumers Customers We care about and care We to contribute actively live. in which we the community We win the hearts and minds of win the hearts We and customers. our consumers a Demonstrating Winning for Passion promise. what we deliver We Bringing out the Us in All of Best Living an Culture Enterprise Impeccable Integrity We believe in trust, and in trust, believe We We teamwork. outstanding & fun environment. a creative value We are empowered leaders, who leaders, empowered are We challenges new by inspired are action. a bias for and have We are honest, transparent honest, are We dealings in our and ethical at all times. Our vision is to grow our business, while our business, while grow is to Our vision footprint environmental our decoupling our and increasing our growth from impact. social positive Vision Core Values Core Chairman & Member Member Member Member Member Secretary & Head of HR Chairman & Member Member Member Member Member Secretary & Head of Internal Audit Independent Director & Chairman of the Board Independent Director & Chief Executive Officer Executive Director & Chief Financial Officer Executive Director Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Independent Director Independent Director Non-Executive Director www.unilever.pk Website Address M/s Central Depository Company Share Registrar Services Limited CDC House, 99-B, Block "B", S.M.C.H.S, Main Shahra-e-Faisal, Karachi - 74400 Share Registration Office Registered Office Auditors Avari Plaza Fatima Jinnah Road Karachi - 75530 Messrs KPMG Taseer Hadi & Co. Chartered Accountants Sheikh Sultan Trust Building No. 2, Beaumont Road, Karachi – 75530 Pakistan Human Resource & Remuneration Committee Human Resource & Remuneration Mr. Kamran Y. Mirza Mr. Zulfikar Monnoo Mr. Kamal Monnoo Mr. Amir R. Paracha Mr. Sarfaraz Ahmed Rehman Ms. Kanize Fathema Zuberi Audit Committee Company Secretary Mr. Aman Ghanchi Board of Directors Board Mr. Kamran Y. Mirza Mr. Amir R. Paracha Mr. Aly Yusuf Amir Ms. Farheen Salman Mr. Zulfikar Monnoo Monnoo Mr. Muhammad Adil Mr. Kamal Monnoo Rehman Mr. Sarfaraz Ahmed Mr. Khalid Mansoor Mr. Ali Tariq Mr. Khalid Mansoor Mr. Muhammad Adil Monnoo Mr. Sarfaraz Ahmed Rehman Mr. Zulfikar Monnoo Mr. Kamran Y. Mirza Mr. Moiz Idris Rajput Company Information Company

Unilever Pakistan Foods Limited - Annual Report 2020 03 Unilever Pakistan Foods Limited - Annual Report 2020 04 Zulfikar Monnoo Company was Zulfikar joined the Board in 1998 when the and Human formed. He is also a member of the Audit Committees of Unilever Pakistan Resource & Remuneration Wharton School, Foods Limited. He is an alumni of The Lahore. He University of Pennsylvania and Aitchison College, Maple Leaf is a Director of Rafhan Maize Products Limited, Cement Factory Limited & Kohinoor Textile Mill and is also the Chief Executive of Pakwest Industries (Pvt) Ltd., Lahore. Muhammad Adil Monnoo a Non-Executive as 2002 on May 5, joined the Board Adil Director. He is also the Member of the Audit Committee of Unilever Pakistan Foods Limited. He holds directorship in Rafhan Maize Products Limited and is in the business of textile trade as the sole proprietor of HN Enterprises. Aly Yusuf- CFO Aly Yusuf- and is the Board on October 01, 2019 Aly Yusuf joined of Unilever Officer Financial Chief & currently Director Unilever Pakistan Foods Limited. He Pakistan Limited & in July 2007. Aly holds a MBA from the joined the company holder. Over his 14-year tenure LUMS and is a CFA Charter and gained extensive Finance has Aly at Unilever, in both developed and developing Business experience He has worked in United Kingdom, markets at Unilever. local, regional and global roles. UAE and Pakistan in Farheen Salman Amir 7, 2016 and is Farheen joined the Board on March Farheen currently the Director Foods & Refreshments. in 1998. In her joined Unilever as a Management Trainee Farheen has worked in career with the Company, 21 years’ & Refreshment a number of categories across both Food Cream NAMET, and HPC. In her role as BD Director Ice and crafted an Farheen worked for Unilever Turkey for the portfolio innovation & communication program 450 million ice that was instrumental in bringing the Euro growth. cream business back to sustained double-digit Amir joined the Board on 1 February, 2020. Over his 21 years Amir joined the Board on 1 February, 2020. management with Unilever, he has held various senior is Amir Paracha markets. other and Pakistan in positions Executive Officer of Unilever Chief also the Chairman and Award Pakistan Limited, Trustee at The Duke of Edinburgh’s of Governors of Foundation Pakistan, Member at the Board on PSDF’s the National Management Foundation, Co-Chair Parwaaz – National Accelerator on Closing the Skills Gap in Karachi Vocational for the the Board and is on Pakistan Training Centre & Shell Pakistan Limited. He joined Unilever Pakistan in 2000 as an Assistant Brand Manager on Wheel and subsequently led multiple business. Care and Personal Laundry within categories in role leadership on took Amir 2008, – 2006 Between for the GCC Africa Middle East North at Unilever marketing cluster. He then returned to lead the Home and Personal Care division in Pakistan before assuming the role of Vice President for Customer Development in 2013. Prior to taking over as the CEO, in his role as VP Customer Development, he helped deliver solid results, successfully inspiring a transformative vision for the future. He continues to actively experiment with disruptive business models and has Unilever the across wellbeing and inclusion championed ecosystem in Pakistan. Amir began his career at the Royal Dutch Shell Oil Company in July 1996. He has done his Masters in Business Administration from the Institute of Business Administration. Amir R. Paracha - CEO Kamran Y. Mirza - Chairman Kamran in 2014 as Chairman of Unilever Kamran joined the Board He qualified as a Chartered Pakistan Foods Limited. UK. He joined Abbott Laboratories Accountant from the the was one of he where 1970, Limited in (Pakistan) Director and served in that youngest ever Managing till 2006. He was also the CEO of the position for 29 years Kamran is also the Chairman Pakistan Business Council. Ltd as well as serving on the of Philip Morris (Pakistan) (Pakistan) Limited & Boards of Colgate-Palmolive Sindh (EFS). Previously he served as Education Fund for PMEX (formerly Chairman of Karachi Stock Exchange, Fund for National Commodities Exchange), Education Authority, Zones Processing Export (EFS), Sindh of Bureau – (Association Karwan-e-Hayat, Pharma a President of Pharmaceutical Multinationals) and as American Overseas Chamber of Commerce & Industry, of State Bank of Pakistan, Business Council; as Director Bank of Bank Alfalah, Pakistan State Oil, National Competitiveness Pakistan, Pakistan Textile City Limited, Company, Holding Genco (CSF), Fund Support and NAVTEC. He International Steel (ISL), Safari Club of Corporate lectures regularly at the Pakistan Institute Governance (PICG). Directors’ Profile Ali Tariq in April 2017 Ali joined the Board as a Non-Executive Director since held Global, and the Unilever group in 2003. He has UK and Regional and Country leadership roles in Singapore, from 2013 to Pakistan. He was CFO of the Pakistan Business in the 2017 and is currently based at Unilever’s headquarters Ali is a member of UK as a Global Vice President of Finance. Chain Leadership Unilever‘s Global Finance and Supply advisory roles with teams. Prior to Unilever, Ali held business also trained as a PricewaterhouseCoopers UK where he of the Institute of Chartered Accountant. He is a member Chartered Accountants in England & Wales. Mr. Mansoor is also Chairman of the Boards of Laraib of the Boards of is also Chairman Mr. Mansoor Power Limited, Hub Narowal Energy Energy Limited, Limited, and ThalNova Hub Power Holding Services Limited, of Thar is also a Director Private Limited. He Power Thar Energy Limited. been the President of the Overseas Mr. Mansoor had also Commerce & Industry (OICCI) for the Investors Chamber of term 2017. Fertilizer Oman Algeria of CEO of position the held had He he was responsible for setting up Company (AOA) where and Urea Fertilizer Complex. the world’s largest Ammonia positions of CEO of various Companies He has also held the had been a Director on the Boards of the Engro Group and various Engro subsidiaries including of Engro Corp and Foods, Engro Polymers, Engro Engro Fertilizers, Engro Sind Engro Coal Mining Company Vopak, Engro Powergen, Limited. He is also a Director and Sui Northern Gas Pipeline Limited and on the Boards of Unilever Pakistan Foods Limited. He is National Bank of Pakistan, Fund Management subsidiary (a Pakistan Jazz board of the on Advisor an also of Veon Global) Board. Khalid Mansoor with Engineering Chemical in Graduate a is Mansoor Khalid distinction and honors. He has been the Chief Executive Officer of Hubco, the first and largest Independent Power Producer (IPP) in Pakistan, since May 2013. The Company generates approximately 10% of the Country’s electricity and is a leading private sector player in addressing the energy crisis currently being faced by Pakistan. After becoming the CEO of Hubco in May 2013, he has growth initiated has transformed the Company and initiatives with Projects worth over US$ 3.5 billion under execution. Sarfaraz, a chartered accountant by qualification, has Sarfaraz, a chartered to several contributed his management expertise SB (GSK), multinational companies such as Unilever, during his Jardine Matheson/Olayan JV and PepsiCo Director & varied career. He is currently the Managing Qasim Limited. In Chief Executive Officer of Fauji Foods Bin as its CEO. The 2005, Sarfaraz established Engro Foods the leading company grew from a green-field to become Oct 2015, he has liquid dairy company in Pakistan. Since others with been involved in consultancy projects, among Supreme, Al-Shaheer, Soya IBL, JSPE, Shan Foods, ICI, Chairman of the Burque Corp, CCL and ITL. Sarfaraz was (joint body Broadcasters/Advertisers Council 2015-18 he was the controlling advertising in Pakistan). Further, in 2019. He is Chairman of the 1st Effie Awards in Pakistan, Aid Foundation. also on the Board of MAP and Patient has He forums. various at speaks Sarfaraz Additionally, Nutrico, RB, given motivational talks at Lays, Mondelez, was he past the In Shell and MAP. Octara, ICI, Engro, as a Board of associated with Shaukat Khanum Hospital He is also Governor and with WWF as a Director. its work on associated with Hisaar Foundation and water/environmental issues in Pakistan. Sarfaraz Ahmed Rehman Kamal joined the Board on December 19, 2006 as a December 19, 2006 the Board on Kamal joined from done his schooling Director. Having Non-Executive from Syracuse College and graduation Aitchison USA, he is also the Member University and Yale University, & Remuneration Committee of of the Human Resource Limited. He holds directorships in Unilever Pakistan Foods Limited, Samira Industries (Pvt) Samira Fabrics (Pvt) Foundation, CNM Textil a.s., Bata Limited, Kaarvan Crafts Pakistan Limited. Kamal Monnoo

Unilever Pakistan Foods Limited - Annual Report 2020 05 Unilever Pakistan Foods Limited - Annual Report 2020 06 Chairman’s Review Report Review Chairman’s Mr. Kamran Y. Mirza Chairman of the Board ACKNOWLEDGMENTS our stakeholders for their continued On behalf of the board of directors, I would like to express gratitude to of valuable services rendered by the employees appreciate the to also like would I support and encouragement. ways of working. I also acknowledge the Company despite challenging environment due to COVID-19 and new and thank their leadership for their valuable fellow directors during 2020 of my diligence and commitment the contributions for the continued growth of the Company. FUTURE PROSPECTS sales growth by driving its core product portfolio supported by launch The Company will strive to deliver strong of the competitive environment & market dynamics. Further, the of new / innovate products taking cognizance for wider penetration of rural areas house holds to increase consumption company will make strenuous efforts & attaining its objective/vision of its products. The Company is committed to achieving operational excellence value chain as well as trust worthy of providing sustainable living to all its stakeholders through responsible purpose driven brands. In accordance with the Code of Corporate Governance and the Companies Act, 2017 the evaluation of the Governance and the Companies Act, 2017 the evaluation of the In accordance with the Code of Corporate directors was conducted by PICG (Pakistan Institute of Corporate Board, its committees and individual The evaluation reflects an increase in overall strategic performance of the Governance) to ensure transparency. board every year. These Committee. HR&R the and Committee Audit the i.e. sub-committees, by assisted was board The the year as per the stipulations of the code of corporate governance. sub-committees held meetings during played by the Sub-Committees (Audit Committee & Human Resources It is important to recognize the key role areas of improvements and recommending pragmatic solutions and Remuneration Committee) in highlighting we will continue our efforts to adopt and implement best governance for optimum performance. Going forward benefit of all stakeholders. practices for sustained growth for the BOARD PERFORMANCE AND EFFECTIVENESS BUSINESS AND INDUSTRY OVERVIEW BUSINESS 31, 2020. ended December Report for the year the Chairman’s Review pleasure to present of the Board, it is my On behalf leader across and maintain position of being a market continued to deliver positive results The Company has where our food faced the challenge of complete lockdown the global pandemic - COVID-19. We categories despite of presence, we consumer trust and our nationwide badly impacted, but with strong commitment, solutions business was and steady growth. ensured high performance its discharging whilst environment challenging a Company forward in the steering in instrumental role was The Board’s the year of The Board has remained cognizant throughout for the benefit of all stakeholders. statutory responsibilities due to stakeholders its returns for all the enhancing objectives and on key Company’s the achieving role for strategic its the operations. focused oversight over Knorr and Rafhan of 17.2% through volume and pricing. recorded a creditable growth rate In 2020, the business investment in products and a renewed sales mix. Increased of launch of new variants of our recorded growth because traction and brand reinforcement. Moreover, we recorded EPS growth innovative marketing helped to drive consumer to creating stakeholder value. of 56.4%, which reiterates our ongoing commitment

DIRECTORS’ REPORT

* We have some of the world’s best known and known best world’s the some of have We positions with leadership brands, trusted most goods consumer moving the fast in many of to Committed compete. in which we categories the people of of life of enhancing the quality that portfolio a broad offer aim to we Pakistan, on year. year consumers diverse to appeals Winning with Brands and Innovations Brands with Winning

Unilever Pakistan Foods Limited - Annual Report 2020 09 Unilever Pakistan Foods Limited - Annual Report 2020 10 2019 5,502 2,943 2,453 2,808 13,291 385.08 Capital Expenditure The Company, in order to expand capacity and increase efficiency, invested Rs. 363.5 million during the year. Liquidity Profile The Company was able to generate Rs. 3,908 million from operating activities during the year. The Company had a net cash and cash equivalents of Rs. 930 million at year end. Cashflow projections are prepared, reviewed and monitored on a periodic basis by your Company to devise the most effective strategy and to optimize returns. Investment strategies are planned after careful consideration of risk profile and surplus funds are mostly kept in short-term bank deposits. Rupees in million 6,679 4,078 3,837 4,055 2020 602.42 15,573 Directors’ Report EPS-basic (Rs) Sales Gross Profit Profit from Operations Profit before tax Profit after tax Gross margin increased by 1.49% to 42.9% through better cost absorption and a rigorous savings agenda. EPS grew by through better cost absorption and a rigorous savings agenda. EPS grew by Gross margin increased by 1.49% to 42.9% margin improvement and tax credits pertaining to capital expenditure. 56.4% versus last year driven by growth, The entity-based business saw a steep decline in sales during the year primarily due to lockdown and Foods Solutions: The entity-based business saw a steep multiple restrictions on outdoor dining. Despite a challenging year, the brand was able to record healthy sales growth in desserts and corn oil product Rafhan: Despite a challenging year, the brand was decisions and relevant consumer promotions. lines. This was achieved by strategic pricing Growth in Knorr was primarily led by Noodles & Ketchup that grew on the back of building brand equity and that grew on the back of building brand primarily led by Noodles & Ketchup Knorr: Growth in Knorr was through precision areas, leveraging digital mediums as well driving penetration in rural consumption in urban of mega occasions. The launch of “cheesy chatt patta” variant was well marketing and capitalizing on the excitement received in the market. The key growth drivers in 2020 were: The key growth drivers The Company manufactures and sells consumer and commercial food products under the brand names Rafhan, Knorr, food products under the brand names and sells consumer and commercial The Company manufactures despite COVID-19 a broad-based growth of 17.2%, and Best Foods. In 2020 the business recorded Energile, Glaxose-D affected Food Solutions business. lockdown that significantly Company’s Principal Activities Company’s Principal The directors present Unilever Pakistan Foods Limited’s (UPFL) Annual Report together with audited financial with audited Annual Report together Limited’s (UPFL) Pakistan Foods present Unilever The directors December 31, 2020. for the year ended statements Operating Results The Foods market (Total package segment) in Pakistan is currently estimated at PKR 3.3 trillion (estimate as per The market consists of Euromonitor and Consumer Panel). several local and multinational companies, with numerous regional players as well. Packaged food is growing at 11.9% mainly led by edible oil and dressings. Industry Review First Interim Dividend 2020 (already paid): Rs. 130 per share First Interim Dividend 2020 (2019: Rs. 88 per share). Second Interim Dividend 2020 (already paid): Rs. 141 per share. (2019: Rs. 63 per share). 120.52 per Rs. paid): 2020 (already Interim Dividend Third share. (2019: Rs. 93 per share). Final Dividend 2020: Rs. 210.89 per share (2019: Rs. 142 per share). Dividends encompasses

Knorr invested in an educational content partnership with Taleemabad to educate children on key themes revolving around safety and good deeds. Almost 1 personal reached through children have been million this partnership. program entrepreneurial its through youth which provides noodle vending carts to people as a means of earning an income while also helping deliver hygienic snacking alternatives to rural communities. Through this initiative, employment opportunities were provided which enhanced the lives of up to 2000 families. ) b) rural to livelihoods provide to continued Knorr a Management system for cooling towers, chillers Management system and air handling. LED lights fuel replacing HFO with cleaner ultrafiltration projects in significant water savings the scope of our offices, factories, consumers, and partners. the scope of our offices, factories, consumers, impact at scale This is enabled by a vision to create an catalyst a as serve can that alliances powerful through global rising for a sustainable future for the planet amid awareness on climate issues and challenges. Welfare Community Investment and Schemes (PKR 14.9 Million) a time of need, Driven by its duty to serve the nation in to commit Unilever Pakistan was one of the first companies and in-kind relief towards COVID-19. Through monetary its vision of donations, Unilever Pakistan brought alive of embracing its Unilever for Pakistan with the intention role as a force of good for the nation. Further: Environment Protection Protection Environment core of lies at the environmental production Sustainable The Company expends strategy. the UPFL manufacturing sustainable development efforts to achieve considerable whilst upholding friendly operations through environment Nation’s Sustainable Development the vision of the United sites initiated various Goals. In 2020, our manufacturing conservation the for measures protection environmental the following implementing by waste and energy water, of sustainability projects: • of Load Energy optimization by installation • with energy efficient Replacement of HPS lights • Significant reduction in air emission through boilers by • Reusing effluence in cooling towers by ultraviolet and • Replacement of water piping network which resulted • of Rainwater Harvesting Storage Tanks Upgradation • waste materials generated from sites Recycling of • of Project E-Bag Implementation which effort an is footprint carbon reduced A improvements with trade balance and current improvements with trade balance and long term account increasing, however, medium to seen. structural economic reforms remain to be growth plans for the business as the plan hinges on growth plans for the business as the plan driving improvements, coverage outlets sales Trade assortment and ensuring General product channel growing faster than prior years. The macro-economy has shown signs of signs shown has macro-economy The company mission forward while holding themselves company mission forward while holding We encourage a culture of agile working especially in the to promote work environment global face of an evolving healthy work life balance. Equity, Diversity and Inclusion remained a top priority at Unilever as we continued efforts to hire without discrimination against gender, age, race, religion, socioeconomic backgrounds, transgenders and differently abled people, and offer equitable opportunities based on individual needs. 2020 while being a most difficult year further highlighted the capabilities and grit of our people as they rose to the challenge of working in an uncertain environment. We pushed our boundaries to devise a flexible work model which while also of safety, standards complied with international taking care of employee mental and physical health with exceptional results as proved by the individual and functional arose that needs unique the with deal to out initiatives rolled in a pandemic. At Unilever, our people are our biggest strength. They drive At Unilever, our people are our biggest strength. the respect and accountable to the highest standards of integrity, the opportunities social responsibility. We take great pride in it is through we make accessible to our people, whether assignments, continuous learning programs, challenging wellbeing initiatives and the like. Our People • • the to risk a poses situation COVID-19 on-going The Principal Risks and Uncertainties Principal Risks risks: The Company is faced with the following principal Our strategic framework to assess performance is based on Our strategic framework Purposeful – growth’ which captures of fundamentals ‘5 the Impactful Design for Channel, Brands, Improved Penetration, for Growth – thereby providing a innovations and Fuel to assessing business shape and wholistic approach progress end to end. company as well as local leadership to ensure that both short to ensure that both well as local leadership company as health of the business remain in term delivery and long-term good position. There is a stringent performance management mechanism in management mechanism performance There is a stringent several uses Company. The management place at the parent practices from based on global best indicators Evaluation of Company’s Performance of Company’s Evaluation

Unilever Pakistan Foods Limited - Annual Report 2020 11 Unilever Pakistan Foods Limited - Annual Report 2020 12 Amir R. Paracha (CEO) Aly Yusuf (CFO) been followed in the preparation of the financial in the preparation been followed there from has been and any departure statements disclosed. adequately and monitored. implemented has been effectively going concern. ability to continue as a as detailed in the Rule Book of corporate governance, of the Stock Exchange. to the financial statements. are disclosed in the notes attendance by directors. committees held and Internal Financial Controls with respect The directors are aware of their responsibility discussions with to internal financial controls. Through management and auditors (both internal and external), they are of the opinion that adequate controls have been implemented by the Company. Board Evaluation In accordance with the Code of Corporate Governance and the Companies Act, 2017 the evaluation of the Board, its committees and individual directors was conducted by PICG (Pakistan Institute of Corporate Governance) to ensure transparency. The board is assisted by sub-committees, i.e. the Audit Committee and the HR&R and these sub-committees held meetings Committee, during the year as per the stipulations of the code of corporate governance. It is also important to highlight the key role played by the sub-committees (Audit Committee & in Human Resources and Remuneration Committee) highlighting areas of improvements and recommending solutions. Going forward we will continue our practical governance best with comply we that ensure to efforts practices on the interest of all stakeholders. • have Standards Reporting Financial International • and design in sound is control internal of system The • are no significant doubts upon the Company's There • from the best practices There has been no departure • or annexed are following the regarding Statements • of Directors and its meetings of Board of Number • Directors • financial data for the last six years. Key Pattern of shareholding. company: The following persons are the directors of the • • Mr. Mr. Kamran Y. Mirza (Chairman of the Board) • Mr. • Ms. Farheen Salman Amir • Mr. Zulfikar Monnoo • Mr. Muhammad Adil Monnoo • Mr. Kamal Monnoo • Mr. Sarfaraz Ahmed Rehman • Mr. Ali Tariq • 2020. of AGM the at held was directors of election The Mr. Khalid Mansoor on April 19, 2023. The term of the present directors will expire 34 226 210 management of the Company present fairly the management of the Company result of its operations, cash flows and changes in equity. Pakistan, have been consistently applied in the preparation of the financial statements and accounting estimates are based on reasonable and prudent judgement. • Appropriate accounting policies, as applicable in • have been maintained. Proper books of account by the The financial statements prepared • The management of UPFL is committed to good corporate required As practices. best with complying and governance under the Code of Corporate Governance, the Directors are pleased to state as follows: Corporate Governance Total – 2020 Total – 2019 Provident Fund Gratuity Fund 192 Rs. in million Rs. in million UPFL contributed Rs. 15.88 million to the staff retirement the staff million to 15.88 Rs. UPFL contributed made by funds during the year. The value of investments the Company as the staff retirement funds operated by 31, 2020 per their financial statements as at December is as follows: Value of investments of employees Value of investments in retirement funds The spirit of giving ranks high among our employees as The spirit of giving ranks the lives of elevate effort to a conscious they make for support active through communities underserved education and access to the health and wellbeing, and fundraising committed through eating healthy Payroll Program volunteering activities. Our Employee for our social raised close to Rs. 1.5 million in support Foundation; Aga Khan University partners; The Citizen’s These funds are Hospital and the World Food Program. nutrition channelized to facilitate access to learning, and youth. and wellbeing for underprivileged children Employee Engagement Employee Engagement There is no room for compromise on safety across all on safety across room for compromise There is no our priority aligned with which is a UPFL operations, continuous . We maintain UPFL Zero goal of Vision through reinforced to a safety mindset attention responsible employee behavior, leadership messaging, designs, facilities and products in safety focused plant and procedures safe of implementation the to addition the year. systems throughout Occupational Safety and Health Safety Occupational

197 993 412 094) 163) 533) 694 706) 581 , 4 304, 841, 837, 747, 904, 828, 898, 767, , , , , ( ( ( ( Total 2 3 3 2 498 993 995 412 094) 163) 533) 706) 581 , 4 240, 841, 837, 683, 904, 828, 898, 767, , , , , ( ( ( ( 2 3 3 2 Sub Total 993 730 094) 163) 412 533) 706) 233 581 , 4 841, 837, 386, 904, 828, 898, 767, 943, , , , ( ( ( ( Un- 3 3 1 Profit appropriated Revenue ------138 138 Reserves General (Rupees in thousand) ------628 628 Special Holding Company Holding USA, Conopco Inc., wholly owned subsidiary Through its UPFL, 76.5% of the shares in has a holding of Unilever PLC, ultimate parent company. and is the Company’s Subsequent Events and commitments affecting the No material changes between occurred have Company the of position financial year and the date of this report. the end of the financial ------499 499 Capital 296, 296, Share , , 1 1 Premium ------699 699 63, 63, Issued, Share Capital paid up capital subscribed and 2019 31,

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e anc l December 31, 2020 @ Rs. 120.52 per share December 31, 2020 @ Rs. 141 per share December 31, 2020 @ Rs. 130 per share December 31, 2019 @ Rs. 142 per share December 31, 2020 year ended December 31, 2020 a Reserve Appropriations Balance as at December 31, 2020 Third Interim dividend for the year ending Second Interim dividend for the year ending First Interim dividend for the year ending B Final dividend for the year ended Profit for the year ended Other comprehensive income for the Total comprehensive income for the period The Auditors, KPMG Taseer Hadi & Co., Chartered The Auditors, KPMG appointed for the year ending Accountants, were The Board has recommended the December 31, 2020. Taseer Hadi & Co. as the Auditors of appointment of KPMG year 2021. the Company for the Auditors Directors Fee is paid in line with Board approval and the Board approval and is paid in line with Directors Fee in policy in this regard has approved a formal Company Companies Act, 2017 and the CCG. The accordance with the and Independent Directors for fee of the Non-Executive of the Board and Committee meetings attending the by the Board from time to time. Company is determined Directors Remuneration Policy Remuneration Directors

Unilever Pakistan Foods Limited - Annual Report 2020 13 Unilever Pakistan Foods Limited - Annual Report 2020 14 March 1, 2021 Karachi Chief Executive Officer Amir R. Paracha

Mirza

2021 Y. 1,

March Karachi Chairman Kamran Thanking you all. On behalf of the Board Future Outlook socio-economic scale vis-a-vis growth and accompanying enhanced difficulties on an international Covid-19 has posed its own specific cum time also having to grapple with has been no exception while at the same adversities. Pakistan Company expects to and operating environment, your challenges. Despite such a testing economic long-standing economic situation the with deal to committed remains management the as future, foreseeable the in results competitive deliver endeavours, understanding, our on-going innovation Unilever’s global expertise, a sound consumer through an access to noodle variant The launch of the new “Cheesy Chatt Patta” offering an exemplary customer service. and by consistently innovation. towards endeavours continuous Company’s the of manifestation a is and portfolio noodles our enhances further to help meet our help us in providing enhanced value our dedicated and focused efforts will We are confident that sustained profitable growth benefitting all stakeholders. consumers’ daily needs and in delivering Our people are the key drivers behind the sustained growth of UPFL. The directors acknowledge the contribution of each employee contribution of each acknowledge the of UPFL. The directors the sustained growth are the key drivers behind Our people grateful also are We products. our in shown trust the for customers to our thanks our like to express also would We the Company. of their support and confidence in our management. to our shareholders for Acknowledgement 4 4 4 4 4 4 4 1 3 4 4 4 4 4 4 1 2 4 No. of Meetings Attended No. of Meetings No. of Meetings Attended 4 4 4 4 4 4 4 1 3 4 4 4 4 4 4 1 3 4 April 2020. th Total No. of Meetings Held * Total No. of Total No. of Meetings Held* April 2020. th April 2020. th Mr. Kamran Y. Mirza Mr. Amir R. Paracha Mr. Aly Yusuf Amir Ms. Farheen Salman Mr. Zulfikar Monnoo Monnoo Mr. Muhammad Adil Mr. Kamal Monnoo Mr. Badaruddin F. Vellani** Rehman*** Mr. Sarfaraz Ahmed Mr. Khalid Mansoor Mr. Ali Tariq Mr. Khalid Mansoor Chairman Mr. Zulfikar Monnoo Member Mr. Kamran Y. Mirza Member Mr. Muhammad Adil Monnoo Member Mr. Badaruddin F. Vellani** Member Mr. Sarfaraz Ahmed Rehman** Member Mr. Moiz Idris Rajput Secretary Board Meetings Attendance Meetings Board Terms of Reference The Committee oversees the Committee has been constituted by the Board in compliance with Listing Regulations. conducts its meetings as and when Internal Audit function, and also reviews audit plans and reports. The Committee and decisions at its meetings and required. The Committee appraises the Board about the significant discussions recommendations in respect of Company’s operations and financial results. and two Non-Executive Directors. All The Committee comprises of five members, three independent Director four times during 2020. Minutes of the employees of the Company have access to the Committee. The Committee met of the Board. meetings are drawn up expeditiously and circulated for the information and consideration Directors Name of Member Audit Committee During the year 2020, four Board Meetings were held and the attendance of each director is given below: of each director and the attendance Meetings were held year 2020, four Board During the *** w.e.f. 20 Appointed Board Committee Meetings Held During the Year Meetings Board Committee Notes: * ** when concerned Director was on the Board. Meetings held during the period Resigned w.e.f. 20 Notes: * ** Meetings held during the period when concerned Member was in the Committee. Ahmed Rehman was appointed as Member of the Committee in place of During the year, Mr. Sarfaraz Mr. Badaruddin F. Vellani with effect from 20

Unilever Pakistan Foods Limited - Annual Report 2020 15 Unilever Pakistan Foods Limited - Annual Report 2020 16 - 6 6 6 6 1 1 1 1 1 No. of Meetings Attended Meetings No. of No. of Meetings Attended Meetings No. of - 6 6 6 6 1 1 1 1 1 Total No. of Meetings Held Meetings No. of Total Total No. of Meetings Held Meetings of No. Total April 2020. th Terms of Reference members. Periodic meetings are held to facilitate handling of The Committee comprises of three and any other significant matters arising during the normal course operational matters, share transfer, of business operations. Name of Member Name of Mr. Aman Ghanchi Secretary Ms. Farheen Salman Amir Ms. Farheen Salman Member Mr. Aly Yusuf Member Mr. Amir R. Paracha Mr. Amir Chairman Name of Member Name of Mr. Sarfaraz Ahmed Rehman* Member Ms. Kanize Fathema Zuberi Secretary Mr. Amir R. Paracha Member Mr. Kamal Monnoo Member Mr. Zulfikar Monnoo Member Mr. Kamran Y. Mirza Chairman Human Resource & Remuneration Committee & Remuneration Human Resource Committee of Directors of Committee * Appointed w.e.f. 20 Terms of Reference laws. It comprises of five members, The Committee has been constituted by the Board in compliance with applicable two of whom are Non-Executive Directors and two are Independent Directors. 61,576 2015 511,576 457,309 220,644 119,386 (330,757) (457,309) (260,487) 1,701,775 8,571,097 4,417,293 4,417,293 2,257,568 1,617,018 1,678,594 2,738,699 2,040,339 3,832,293 1,665,685 1,232,128 1,191,568 2,518,055 (4,738,804) 61,576 96,544 2016 215,694 694,779 (182,195) (160,788) 1,517,410 2,813,177 1,743,342 2,597,483 2,436,695 4,618,095 4,618,095 2,084,856 1,804,918 1,767,758 1,276,089 4,202,215 1,152,012 9,466,836 1,802,228 (1,152,012) (5,264,621) 61,576 94,842 (77,091) 2017 181,470 213,130 119,894 (236,183) 2,737,580 1,946,726 1,920,706 1,355,673 1,883,709 4,833,564 1,992,974 3,899,478 1,993,132 4,080,948 3,686,348 4,080,948 (2,737,580) (5,911,696) 10,745,260 (1,693,216) 63,699 175,822 174,535 130,808 (251,118) 2018 1,705,568 (847,259) 5,349,077 1,734,457 2,543,175 2,495,875 2,783,549 3,903,785 4,078,320 5,970,883 5,970,883 1,490,332 3,056,526 1,892,563 1,828,864 (1,042,445) (6,549,353) 11,898,430 (Rupees in thousand) 63,699 689,339 304,680 108,368 2019 3,635,518 4,479,956 2,021,704 2,304,197 2,942,876 4,784,636 2,807,800 7,088,833 7,088,833 5,502,423 3,654,460 3,326,005 2,452,938 2,240,498 (2,057,207) (1,064,794) (7,789,001) (1,153,951) 13,291,424 63,699 929,895 100,559 410,824 (264,533) 2020 (674,169) 3,908,226 4,077,508 3,390,721 6,678,569 3,837,412 7,447,373 7,447,373 4,054,958 2,747,694 4,699,679 3,732,128 3,614,686 2,683,995 4,288,855 (3,403,137) 15,572,747 (8,894,178) Cash flows Profit or loss OPERATING AND FINANCIAL TRENDS Operating activities Investing activities Financing activities Cash and cash equivalents at the end of the year Net sales Cost of sales Gross profit Operating profit Profit before tax Profit after tax Cash ordinary dividends Net current liabilities Total equity and liabilities Non-current liabilities Current liabilities Total liabilities Share capital Reserves Total equity Property, plant and equipment Other non-current assets Current assets Total assets Performance Indicators for 6 years for Indicators Performance Financial Position

Unilever Pakistan Foods Limited - Annual Report 2020 17 Unilever Pakistan Foods Limited - Annual Report 2020 18

9 2 4 70 0.05 0.90 0.51 0.24 0.14 0.76 0.03 1.32 -0.10 (187) (108) 44.71 14.38 20.88 29.96 15.00 5,950 5,890 2015 101.01 135.31 100.09 100.09 272.60 150.00 198.62 10,395 2 5 66 10 (89) 0.27 0.00 0.94 0.56 0.16 0.54 1.79 0.06 0.56 (165) 70.70 70.70 44.39 20.45 13.48 2016 36.90 28.44 6,200 4,800 5,850 180.74 101.49 205.72 368.97 293.12 3 5 61 13 (94) 0.01 0.66 0.54 0.26 0.09 0.18 1.07 0.03 0.93 2017 (168) 12.62 19.54 44.98 27.22 29.47 20.50 7,500 7,315 5,400 135.66 193.39 136.50 136.50 205.00 218.55

2 4 55 15 (86) 0.78 0.33 0.52 0.29 0.14 2.85 0.04 1.02 0.98 (156) 79.23 22.87 44.96 14.58 25.92 28.00 7,125 6,935 9,999 2018 167.25 167.25 297.11 240.68 274.92 280.00

2 4 44 19 0.74 0.27 0.02 1.34 0.51 0.16 0.05 1.00 1.00 (165) (102) 23.91 41.40 18.46 23.85 19.48 38.60 5,170 7,625 7,500 2019 361.73 116.90 116.21 133.81 386.00 385.08 2 4 39 16 0.01 2.25 0.57 0.22 0.25 0.84 0.04 1.00 1.00 (171) 24.64 (116) 42.89 28.08 23.24 60.24 6,950 2020 392.63 160.53 151.92 151.20 602.42 431.35 602.41 15,000 14,000 % % % % % % Rs. Rs. Rs. Rs. Rs. Rs. Unit Days Days Days Days Times Times Times Times Times Times Times Times Times Times Times Times Times Times Performance Indicators for 6 years for Indicators Performance *This includes interim and proposed final dividend for the year Profitability Ratios FINANCIAL RATIOS FINANCIAL Gross Profit Ratio Net Profit to sales EBITDA margin to sales Operating leverage ratio Pre tax return on equity Post tax return on equity Return on captial employed Financial leverage ratio Interest cover ratio Earnings per share (EPS) Price earning ratio Dividend yield ratio Dividend payout ratio - earnings Dividend payout ratio - par value Dividend Cover ratio Cash dividend* Market Value - low Market Value - high Market Value - year end Breakup value per share without surplus on revaluation of fixed assets Inventory turnover ratio Debtor turnover ratio Creditor turnover ratio Total assets turnover ratio Fixed assets turnover ratio Operating cycle Current Ratio Quick / Acid Test Ratio Cash to current liabilities Cash flow from operations to sales Capital Structure Ratios Investment / Market Ratios Activity / Operating Performance Ratios Liquidity Ratios 15,000 2020 2020 3,837 4,055 2020 602.42 6,950 14,000 602.41 7,625 2019 2019 2,808 2,453 2019 385.08 5,170 7,500 Share price year end 386.00 Profit after tax 9,999 2018 DPS 2018 1,734 2,496 2018 274.92 6,935 7,125 280.00 7,500 2017 EPS Share price-High 2017 1,356 1,921 2017 5,400 218.55 7,315 Share Price Trend 205.00 Profit before tax 6,200 Comparison of EPS and DPS of EPS and Comparison 2016 2016 Comparison of PBT and PAT 1,276 1,768 4,800 2016 5,850 205.72 368.97 Share price-Low 10,395 2015 2015 5,890 1,232 1,666 2015 198.62 5,950 - 150.00 0 6,000 4,000 2,000 8,000 16,000 14,000 12,000 10,000 500 0

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000

700 600 500 400 300 200 100

Rs. in Million in Rs. Rupees Rupees Performance Indicators for 6 years for Indicators Performance

Unilever Pakistan Foods Limited - Annual Report 2020 19 Unilever Pakistan Foods Limited - Annual Report 2020 20

------2.31 13.10 % 27.45 74.09 27.45 47.82 44.65 13.36 96.58 12.98 93.88 (6.76) (2.03) (5.58) (15.95) 114.27 315.70 124.02 332.95 100.00 111.42 116.84 182.13 (12.46) (40.53) (100.00) (100.00) 15 Vs.14 ------5,691 1,119 37,749 61,576 37,935 81,637 81,676 Rs. 22,483 15,180 50,484 30,868 48,812 959,276 376,961 209,064 593,252 214,953 220,644 2015 2,159,725 4,417,293 4,417,293 2,257,568 1,617,018 1,678,594 2,040,339 2,518,055 2,348,513

(Rs. in thousand) ------Equity Non-current Liability Current Liability 2.18 7.53 7.93 7.81 3.24 3.15 4.55 1.00 4.55 46.68 39.79 57.21 17.11 51.90 44.42 % (2.24) (0.12) (9.36) (0.80) 100.00 135.97 (67.41) (56.91) (64.96) (100.00) (100.00) 16 Vs.15

------2,605 8,000 2,452 61,576 74,049 57,623 81,637 Rs. 12,302 31,429 23,864 10,815 694,779 958,171 301,929 341,659 213,242 215,694 115,182 2016 1,743,342 2,424,678 2,597,483 2,436,695 4,618,095 4,618,095 2,181,400 1,804,918 2,084,856

------5.27 7.34 5.17 14.20 % 12.78 78.88 24.49 41.92 45.32 (4.43) (1.19) (4.41) (4.29) 100.00 100.00 281.12 (93.12) (11.63) (11.63) (89.95) (81.60) (48.94) (86.09) (49.98) (18.20) (100.00) 7,000 17 Vs.16

------9,345 2,288 84,566 47,523 61,576 81,637 13,205 35,446 19,346 60,659 21,193 12,184 Rs. 438,767 347,558 583,741 181,470 203,785 213,130 119,894 2017 1,992,974 1,007,742 3,018,467 2,087,816 1,993,132 4,080,948 3,686,348 4,080,948

- - - 6,000 7.58 3.45 5.90 % 16.07 39.67 53.35 46.31 39.59 46.31 38.39 49.81 60.86 (4.44) (5.00) 100.00 (59.80) 220.76 485.27 100.00 143.65 455.24 942.91 100.00 100.00 100.00 (11.74) (33.40) (14.14) (18.11) (100.00) 1,425.40 18 Vs.17

- - - 2,980 33,996 13,107 47,136 81,637 30,287 49,055 62,225 63,699 14,000 53,536 13,391 11,338 24,819 34,853 Rs. 135,716 174,535 963,034 263,869 938,994 509,288 2018 2,783,549 2,867,577 2,914,357 3,903,785 5,970,883 5,970,883 3,056,526 1,114,816 1,892,563 1,828,864 5,000

------5.70 8.82 0.35 % 18.72 70.49 61.53 29.11 14.76 18.72 74.57 31.29 49.07 96.23 72.44 21.75 22.51 (6.30) 227.44 186.45 106.71 159.26 (57.62) (35.01) (32.01) (54.52) (46.65) (96.25) (100.00) 19 Vs.18

- - - - 4,000 2,980 5,157 14,408 34,717 35,217 81,637 32,050 63,699 24,141 30,392 13,854 18,594 Rs. 724,556 203,749 426,235 140,520 902,351 105,054 280,539 304,680 868,282 2019 4,274,576 2,304,197 4,479,956 3,762,828 7,088,833 7,088,833 3,326,005 3,654,460 2,240,498

- - - - - 6.57 4.64 5.06 2.56 5.06 2.13 1.86 8.68 28.70 34.84 79.43 10.72 19.79 52.22 16.92 19.25 28.34 % (2.47) (4.27) Rs. in Million 437.17 100.00 100.00 3,000 399.90 (47.57) (62.10) (34.63) (32.39) (98.21) (100.00) 20 Vs.19

- - - 387 620 3,371 2,980 77,395 12,571 81,637 25,727 57,506 11,519 69,256 23,660 63,699 Rs. 107,740 648,799 164,302 999,124 455,214 213,195 361,050 929,895 410,824 2020 3,732,128 7,447,373 7,447,373 2,747,694 4,168,976 3,832,687 3,614,686 2,683,995 4,288,855 2,000 1,000 -

2020 2019 2018 2017 2016 2015 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 Sales tax refundable Year Current assets Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Long term loans Long term deposit and prepayment Retirement benefit - prepayment ASSETS Current liabilities Trade and other payables* Provision Accrued interest / mark up Sales tax payable Current portion of lease liabilities Short term borrowings Retirement benefits - obligation Long term borrowing Lease liabilities Deferred taxation Share capital Reserves Non-current liabilities EQUITY AND LIABILITIES EQUITY AND Capital and reserves Statement of Financial Position Analysis - Equity & Liabilities Horizontal Analysis for 6 years for Analysis Horizontal Statement of Financial Position Financial of Statement

------1.14 1.10 4.73 0.71 4.87 0.51 0.34 1.39 0.13 5.00 0.02 1.85 0.85 0.86 1.85 8.53 % 21.72 53.17 57.00 36.61 46.19 13.43 51.11 38.00 48.89 100.00 100.00

------2015 5,691 1,119 50,484 48,812 37,749 61,576 37,935 81,676 81,637 22,483 15,180 30,868 Rs. 959,276 376,961 214,953 220,644 209,064 593,252 4,417,293 2,159,725 4,417,293 2,257,568 1,617,018 1,678,594 2,040,339 2,348,513 2,518,055

------0.05 2.49 1.60 (Rs. in thousand) 1.77 0.27 4.67 7.40 1.33 0.05 4.62 1.26 6.54 0.52 0.23 0.68 47.24 % 37.75 52.76 20.75 52.50 56.25 45.15 15.04 39.08 100.00 Property, plant and equipment Other Non-current assets Current assets 100.00

Balance Sheet Analysis - Assets ------2016 8,000 2,605 2,452 74,049 61,576 57,623 81,637 12,302 31,429 23,864 10,815 Rs. 115,182 694,779 958,171 301,929 341,659 213,242 215,694 4,618,095 4,618,095 2,181,400 1,743,342 2,424,678 2,597,483 2,436,695 2,084,856 1,804,918

------2.07 0.47 1.17 0.87 0.30 1.51 2.94 4.45 0.23 4.99 5.22 1.49 0.06 0.52 2.00 0.32 8.52 10.75 73.96 51.16 24.69 90.33 48.84 48.84 % 14.30 100.00 100.00

7,000 ------2017 9,345 2,288 84,566 47,523 61,576 81,637 60,659 13,205 35,446 19,346 12,184 Rs. 21,193 438,767 347,558 583,741 181,470 203,785 213,130 119,894 2,087,816 4,080,948 4,080,948 1,007,742 1,992,974 3,018,467 1,993,132 3,686,348

- - - 0.57 0.79 1.37 2.27 1.07 4.42 1.04 0.19 0.22 2.92 0.90 0.22 0.23 0.42 0.82 8.53 0.58 0.05 0.50 % 15.73 31.70 18.67 51.19 16.13 46.62 30.63 48.03 65.38 48.81 100.00 100.00 6,000

- - - 2018 2,980 47,136 13,107 30,287 81,637 63,699 14,000 33,996 62,225 53,536 13,391 49,055 24,819 11,338 34,853 Rs. 135,716 174,535 963,034 263,869 938,994 509,288 2,914,357 5,970,883 2,867,577 3,903,785 2,783,549 5,970,883 3,056,526 1,892,563 1,114,816 1,828,864

- - - - % 5,000 2.87 6.01 0.45 0.20 0.19 0.07 1.98 1.15 0.26 0.50 0.43 0.49 1.48 4.30 3.96 0.34 0.90 0.04 46.92 12.74 10.23 12.25 53.08 51.56 63.20 60.30 32.50 31.60 100.00 100.00

- - - - 2019 5,157 2,980 14,408 34,717 35,217 81,637 32,050 63,699 24,141 30,392 13,854 18,594 724,556 203,749 426,235 140,520 902,351 105,054 280,539 304,680 868,282 3,762,828 7,088,833 7,088,833 4,274,576 2,304,197 4,479,956 3,326,005 3,654,460 2,240,498 Rs. 4,000 - - - 0.77 0.17 8.71 2.21 6.11 0.93 1.04 1.10 0.05 0.03 0.15 0.34 0.32 0.01 5.52 1.45 0.01 2.86 4.85 0.85 Rs. in Million 57.59 51.46 13.42 12.49 50.11 36.04 48.54 36.89 55.98 % 100.00 100.00

- - - 2020 387 620 3,371 2,980 77,395 57,506 25,727 12,571 81,637 69,256 11,519 23,660 63,699 3,000 107,740 648,799 164,302 999,124 455,214 213,195 361,050 929,895 410,824 7,447,373 7,447,373 3,732,128 2,747,694 4,168,976 3,832,687 3,614,686 2,683,995 4,288,855 Rs. 2,000 1,000

2017 2020 2019 2016 2015 2018 Year Vertical Analysis for 6 years for Analysis Vertical Statement of Financial Position Financial of Statement Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Taxation - payments less provision Cash and bank balances Sales tax refundable Current assets ASSETS Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Long term loans Long term deposit and prepayment Retirement benefit - prepayment Trade and other payables Provision Accrued interest / mark up Sales tax payable Current portion of lease liabilities Short term borrowings Current liabilities Non-current liabilities Retirement benefits - obligation Long term borrowing Lease liabilities Deferred taxation Share capital Reserves EQUITY AND LIABILITIES Capital and reserves Statement of Financial Position Analysis - Assets

Unilever Pakistan Foods Limited - Annual Report 2020 21 Unilever Pakistan Foods Limited - Annual Report 2020 22

7.04 1.20 5.15 4.68 19.85 (0.05) (2.18) % % 44.71 10.07 19.43 14.32 14.05 35.13 14.38 (1.46) (0.42) (5.06) (1.43) (4.01) (1.45) (9.16) (1.80) 100.00 (27.52) (55.29) (16.32) (22.80) (538.59) 15 Vs.14 15 Vs.14

(4,421) (4,421) Rs. Rs. 103,174 103,174 (36,090) (36,090) 2015 2015 1,701,775 1,701,775 (125,372) (433,557) (125,372) (433,557) (154,298) (154,298) 1,227,707 1,227,707 8,571,097 8,571,097 3,832,293 1,665,685 1,232,128 3,832,293 1,665,685 1,232,128 (4,738,804) (4,738,804) (1,954,022) (1,954,022) (Rs. in thousand) (Rs. in thousand)

5.90 1.27 4.07 0.97 3.57 0.02 9.65 0.54 6.13 19.04 18.67 13.50 44.39 10.45 11.10 14.56 16.64 13.40 13.48 % % (1.64) (1.34) (0.36) (5.19) (4.49) 134.49 100.00 (55.61) (23.65) 16 Vs.15 16 Vs.15

1,525 1,525 Rs. Rs. 120,343 120,343 (34,470) (34,470) 2016 2016 1,276,089 1,802,228 1,802,228 (155,137) (155,137) (126,587) (126,587) (491,669) (491,669) 1,767,758 1,767,758 1,277,614 1,277,614 1,276,089 4,202,215 4,202,215 9,466,836 9,466,836 (5,264,621) (5,264,621) (2,238,606) (2,238,606)

8.02 5.72 6.24 1.89 8.65 8.65 18.12 % % (0.05) 17.87 12.57 12.62 13.50 12.29 15.02 95.15 14.92 44.98 18.35 68.49 (0.24) (5.26) (2.82) (1.28) 100.00 (55.02) (24.66) (24.51) (427.34) 17 Vs.16 17 Vs.16

(4,992) (4,992) Rs. Rs. 202,771 202,771 (26,020) (26,020) 2017 2017 1,946,726 1,946,726 (302,756) (137,533) (302,756) (137,533) (565,033) (565,033) 1,920,706 1,355,673 1,920,706 1,355,673 4,833,564 1,350,681 4,833,564 1,350,681 10,745,260 10,745,260 (5,911,696) (2,649,320) (5,911,696) (2,649,320)

4.17 0.00 1.56 3.26 2.88 34.76 27.94 21.37 10.73 10.79 10.67 68.72 81.78 30.64 29.95 28.42 44.96 14.58 20.98 14.58 (6.40) (0.40) (2.65) (1.19) % % 100.54 100.00 (55.04) (22.61) 18 Vs.17 18 Vs.17 27 27 Rs. Rs. 342,115 342,115 (47,300) (47,300) 2018 2018 2,543,175 2,543,175 (761,418) (761,418) (315,392) (142,016) (315,392) (142,016) 5,349,077 1,734,457 5,349,077 1,734,457 2,495,875 1,734,484 2,495,875 1,734,484 11,898,430 11,898,430 (6,549,353) (2,690,609) (6,549,353) (2,690,609)

2.87 2.29 11.71 15.72 22.14 24.16 25.39 12.50 41.42 41.25 18.93 21.12 41.40 18.43 18.46 (2.67) (0.02) (2.95) (1.34) (1.02) % % 185.57 100.00 (17.26) (14.73) (11.04) (53.39) (58.60) (10,970) 19 Vs.18 19 Vs.18

(2,935) (2,935) Rs. Rs. 304,339 304,339 2019 2019 2,942,876 2,942,876 (178,067) (178,067) (135,076) (135,076) (391,596) (391,596) (354,862) (354,862) 2,807,800 2,807,800 2,450,003 5,502,423 2,450,003 5,502,423 2,452,938 2,452,938 13,291,424 13,291,424 (7,789,001) (7,789,001) (2,294,223) (2,294,223)

256 0.03 2.63 % % 17.16 15.02 60.56 44.42 56.44 14.19 26.18 56.82 38.56 21.38 24.67 24.64 26.04 34.54 42.89 (0.87) (1.40) (0.14) (2.89) (1.84) 100.00 (83.31) (57.11) (38.70) (14.60) 20 Vs.19 20 Vs.19

4,581 4,581 Rs. Rs. 409,454 409,454 2020 2020 (22,550) (22,550) 4,077,508 4,077,508 (217,546) (217,546) (450,428) (285,906) (450,428) (285,906) 6,678,569 3,837,412 6,678,569 3,837,412 3,841,993 4,054,958 3,841,993 4,054,958 15,572,747 15,572,747 (2,274,181) (2,274,181) (8,894,178) (8,894,178) Profit or Loss Account and other Comprehensive Income Comprehensive and other Account or Loss Profit Horizontal Analysis for 6 years for Analysis Horizontal Sales Cost of sales Gross profit Distribution cost Administrative expenses Other operating expenses Other operating income Profit from operations Finance costs Profit before taxation Taxation Profit after taxation Other comprehensive income/(loss) Total comprehensive income Sales Cost of sales Gross profit Distribution cost Administrative expenses Other operating expenses Other income Profit from operations Finance costs Profit before taxation Taxation Profit after taxation Other comprehensive income/(loss) Total comprehensive income Vertical Analysis for 6 years for Analysis Vertical Sales Other Income Cost of Sales Distribution Other Expenses Finance Cost Taxation Total Comprehensive Income Financing Activities Operating Activities Investing Activities 16,000 18,000 16,000 14,000 2015 14,000 12,000 2016 12,000 10,000 10,000 2017 8,000 Rs. in Million 8,000 2018 6,000 6,000 4,000 2019 4,000 2,000 2,000 2020 - -

-

500 2017 2016 2015 2020 2019 2018 2017 2016 2015 2020 2019 2018 (500) 4,000 3,500 3,000 2,500 2,000 1,500 1,000

(1,000) (1,500) (2,000) (2,500) (3,000)

Rs. in Million in Rs. Year Year Cash Flows Analysis Profit or Loss Analysis - Expenses Profit or Loss Analysis - Income Profit or Loss Graphical Analysis Graphical

Unilever Pakistan Foods Limited - Annual Report 2020 23 Unilever Pakistan Foods Limited - Annual Report 2020 24

To Employees To Government To Shareholders To Lenders 2019 Rs. in 718,423 122,559 5,778,885 thousand 5,778,885 2,271,929 2,665,974 (9,171,878) 14,950,763

46.13%

10,354 2.12% 2020 Rs. in 778,194 2,577,397 7,487,151 4,121,206 thousand 7,487,151 17,612,886 (10,125,735) 12.43% TH DISTRIBUTION 2019 39.31% WEAL 55.04% 0.14% 10.39% TH DISTRIBUTION 2020 34.42% WEAL To Providers of Capital Mark-up / interest expense on To Government To Employees Total Revenue inclusive of Total Revenue inclusive Dividend to shareholders borrowed funds

excise duty, Income tax, sales tax, WPPF custom duty, WWF and

costs Salaries, benefits and other

WEALTH DISTRIBUTION materials and services Bought-in WEALTH GENERATED tax and other Income sales Statement of Wealth Generated and Distributed and Generated Wealth of Statement 6.23 0.00 0.02 0.00 0.01 0.03 0.04 76.55 17.12 17,411 59,751 11,378 75,084 70,085 78,524 31,904 69,500 19,890 25,158 80,344 18,328 76.55 100.00 117,786 139,515 296,058 129,028 145,816 108,096 4,876,294 6,369,950 Percentage Percentage Total Shares Held* Total Shares 64 30 424 1,720 2,694 1,122 396,867 1,090,735 4,876,294 6,369,950 4,876,294 Number of Shares Held Shares Held 100 500 To 1,000 5,000 1 2 3 1 1 8 70,000 75,000 10,000 15,000 30,000 40,000 50,000 55,000 80,000 85,000 12 16 100,000 120,000 130,000 140,000 784 828 4,880,000 Number of Shareholders 1 Shareholdings' Slab Shareholdings' 101 501 From 1,001 5,001 70,001 75,001 95,001 10,001 25,001 35,001 45,001 50,001 65,001 80,001 115,001 125,001 135,001 4,875,001 3 2 2 2 3 2 1 1 1 1 3 1 1 1 1 91 16 18 678 828 Shareholders holding 5% or more : CONOPCO, INC. Totals Others a. Local* b. Foreign* Foreign Companies Banks, development finance institutions, Banks, development finance institutions, non-banking finance companies, insurance companies, takaful, modarabas and pension funds Executives General Public Public Sector Companies and Corporations Directors, CEO and their spouse(s) and minor Directors, CEO and their spouse(s) children Associated Companies, undertakings and Associated Companies, undertakings related parties Shareholders’ Category Number of Shareholders Number of As at December 31, 2020 December at As Pattern of Shareholding Shareholding of Pattern

Unilever Pakistan Foods Limited - Annual Report 2020 25 Unilever Pakistan Foods Limited - Annual Report 2020 26 1 1 1 1 1 1 30 64 1 1 5,617 1,122 159,173 112,184 118,034 the year 4,876,294 4,876,294 Number of Shares Held Acquired during 1,823 1 1 1 1 1 1 1 1 1 1 1 1 1 2 3 1

Number of Shareholders Sarfaraz Ahmed Rehman Amir R. Paracha i) and Associated Companies, undertakings related parties (name-wise details) CONOPCO, INC. ii) their spouse(s) and minor children Directors, CEO and Mr. Kamran Y. Mirza Mr. Amir R. Paracha Mr. Aly Yusuf Amir Ms. Farheen Salman Mr. Zulfikar Monnoo Adil Monnoo Mr. Mohammad Mr. Kamal Monnoo Rehman Mr. Sarfaraz Ahmed Mr. Ali Tariq Mr. Khalid Mansoor D/o Mr. Zulfikar Monnoo Ms. Amna Monnoo W/o Mr. Zulfikar Monnoo Mrs. Sarwat Zulfikar iii) and Corporations Public Sector Companies iv) Finance Institutions, Banks, Development Companies, Insurance Companies, Non-Banking Finance and Pension Funds Takaful, Modarabas v) 5% or more voting rights (name-wise details) Shareholders holding CONOPCO Inc. Information on shareholding required under reporting framework of Code of Corporate Governance is as follows: Code of Corporate framework of required under reporting on shareholding Information Shareholders’ Category 2. S.No. Name 1. Dealings in Shares by Directors, Executives, and their spouses and their Directors, Executives, in Shares by Dealings and minor children During January 01, 2020 to December 31, 2020 During January December 01, 2020 to Pattern of Shareholding Additional Information Information Additional Shareholding of Pattern As at December 31, 2020 December at As Chairman the year members given below: members given to the have been formed, documented and advised committee for compliance. yearly) of the committee were as per following: firm of to A.F.Ferguson & Co (a member & Co. & PricewaterHouseCoopers), BDO Ebrahim suitably are considered who Adil Yousuf Deloitte are and the purpose for qualified and experienced of the conversant with the policies and procedures company. rating under that they have been given a satisfactory Institute of the Quality Control Review program of the registered Chartered Accountants of Pakistan and and they that Pakistan, of Board Oversight with Audit International compliance with are in their partners all on code Federation of Accountants (IFAC) guidelines Chartered of ethics as adopted by the Institute of and the Accountants of Pakistan and that they are not a partners of the firm involved in the audit and close relative (spouse, parent, dependent officer, non-dependent children) of the chief executive company chief financial officer, head of internal audit, secretary or director of the company. other provide to appointed been not have them services except in accordance with the Act, these regulations or any other regulatory requirement and observed have they that confirmed have auditors the IFAC guidelines in this regard. We confirm that all requirements including regulations 3, 6, 7, 8, 27,32, 33 and 36 of the Regulations have been complied with. 12. of comprising has formed committees The Board a) Audit Committee • • Mr. Khalid Mansoor (Chairman) • Mr. Kamran Y. Mirza • Mr. Zulfikar Monnoo b) • Mr. Muhammad Adil Monnoo Committee HR and Remuneration Mr. Sarfaraz Ahmed Rehman • • Mr. Kamran Y. Mirza (Chairman) • Mr. Zulfikar Monnoo • Mr. Kamal Monnoo 13. • Mr. Sarfaraz Ahmed Rehman The terms of reference of the aforesaid committees Mr. Amir R. Paracha 14. of meetings (quarterly/half yearly/ The frequency a) Audit Committee - 04 Meetings during the year b) 15. - 01 Meeting during HR and Remuneration Committee the internal audit function The Board has co-sourced 16. auditors of the company have confirmed The statutory 17. The statutory auditors or the persons associated with 18. not rounded has the Company (1), 6 Clause purpose of For the up the fraction as one since the Board has adequate Independent Directors i.e. 03 Independent Directors out of the Board of 10 Directors. We have duly complied with the minimum requirement of Executive & Independent Director. The additional number out of 10 is assigned to Non-Executive Director. Amir R. Paracha Chief Executive Officer Karachi March 01, 2021 Y. Mirza Kamran Names • Y. Mirza Mr. Kamran (Chairman of the Board) • Mr. Khalid Mansoor • Mr. Sarfaraz Ahmed Rehman • Mr. Amir R. Paracha (CEO) • Mr. Aly Yusuf (CFO) • Ms. Farheen Salman Amir • Mr. Zulfikar Monnoo • Mr. Muhammad Adil Monnoo • Mr. Kamal Monnoo • Mr. Ali Tariq serving as a director on more than seven listed serving as a director on more than companies, including this company. been taken to have that appropriate steps ensured its along with the company disseminate it throughout supporting policies and procedures. policies of overall corporate strategy and significant complete the company. The Board has ensured that along record of particulars of the significant policies of approval or updating is maintained with their date by the company. by taken been have matters relevant on decisions and board/shareholders as empowered by the relevant provisions of the Act and these Regulations. Chairman and in his absence by a Director elected by has complied purpose. The board the board for this with the requirements of Act and the Regulations with respect to frequency, recording and circulating minutes of meeting of board. transparent procedures for remuneration of directors in accordance with the Act and these Regulations. Directors Training Program. Head of Financial Officer, Company Secretary and Internal Audit, including their remuneration and terms with complied and employment of conditions and relevant requirements of the Regulations. endorsed the financial statements before approval of the Board. Statement of Compliance with the Code of Corporate Corporate of the Code with Compliance of Statement Governance Regulations in the following manner: Regulations Female Directors Non-Executive Directors Executive Directors Category Independent Directors 2. is as follows: The composition of Board 1. are 10 as per the following: The total number of Directors a. Male: 9 b. Female: 1 The Company has complied with the requirements of the the requirements with complied has The Company 3. The Directors have confirmed that none of them is 4. has and Conduct of Code adopted has The company 5. has developed a vision/mission statement, The Board 6. All the powers of the Board have been duly exercised 7. The meetings of the Board were presided over by the 8. The Board of Directors have a formal policy and 9. All the Directors of the Company has completed 10. The Board has approved appointment of Chief 11. duly Executive Officer Chief Officer and Chief Financial

Unilever Pakistan Foods Limited - Annual Report 2020 27 Unilever Pakistan Foods Limited - Annual Report 2020 28 To the members of Unilever Pakistan Foods Limited of Unilever Pakistan To the members in Listed Companies of Compliance contained on the Statement Review Report Regulations, 2019 Governance) (Code of Corporate Date: March 05, 2021 Karachi Independent Auditor’s Review Report Auditor’sIndependent Review KPMG Taseer Hadi & Co. Chartered Accountants Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance to our attention which causes us to believe that the Statement of Compliance Based on our review, nothing has come requirements contained in respects, with the material compliance, in all does not appropriately reflect the Company’s for the year ended 31 December 2020. the Regulations as applicable to the Company The Regulations require the Company to place before the Audit Committee, and upon recommendation of the Audit place before the Audit Committee, and upon recommendation of the Audit The Regulations require the Company to for their review and approval, its related party transactions. We are only Committee, place before the Board of Directors this requirement to the extent of the approval of the related party transactions required and have ensured compliance of of the Audit Committee. by the Board of Directors upon recommendation As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and we are required to obtain an understanding of the accounting and As a part of our audit of the financial statements the audit and develop an effective audit approach. We are not required to internal control systems sufficient to plan to form an opinion or controls and all risks covers of Directors’ statement on internal control whether the Board consider the Company’s corporate governance procedures and risks. on the effectiveness of such internal controls, The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our responsibility Our the Company. of Directors of Board of the that is Regulations the compliance with The responsibility for the provisions of status of the Company’s compliance with the Statement of Compliance reflects the is to review whether of the Regulations. non-compliance with the requirements report if it does not and to highlight any the Regulations and prepared by the and review of various documents to inquiries of the Company’s personnel A review is limited primarily with the Regulations. Company to comply We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) the Listed Companies (Code of Corporate enclosed Statement of Compliance with We have reviewed the Limited (the of Directors of Unilever Pakistan Foods Regulations) prepared by the Board Regulations, 2019 (the of the Regulations. with the requirements of regulation 36 ended 31 December 2020 in accordance Company) for the year FINANCIAL STATEMENTS 2020

Independent Auditor’sIndependent Report To the members of Unilever Pakistan Foods Limited of Unilever Pakistan To the members Statements the Audit of the Financial Report on Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the in our professional judgment, were of most significance in our audit of the Key audit matters are those matters that, These matters were addressed in the context of our audit of the financial financial statements of the current period. opinion thereon, and we do not provide a separate opinion on these matters. statements as a whole, and in forming our Key Audit Matters We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our with International Standards on Auditing (ISAs) as applicable in Pakistan. Our We conducted our audit in accordance are further described in the Auditor’s Responsibilities for the Audit of the responsibilities under those standards We are independent of the Company in accordance with the International Financial Statements section of our report. Code of Ethics for Professional Accountants as adopted by the Institute of Ethics Standards Board for Accountants’ Code) and we have fulfilled our other ethical responsibilities in accordance Chartered Accountants of Pakistan (the evidence we have obtained is sufficient and appropriate to provide a basis for with the Code. We believe that the audit our opinion. Basis for Opinion In our opinion and to the best of our information and according to the explanations given to us, the statement of to the explanations given to us, to the best of our information and according In our opinion and income, the statement of changes or loss account and other comprehensive financial position, the statement of profit accounting with the conform thereof forming part notes with the together flows cash of and the statement in equity in Pakistan and give the information required by the Companies Act, 2017 (XIX and reporting standards as applicable respectively give a true and fair view of the state of the Company’s affairs as of 2017), in the manner so required and other comprehensive income, the changes in equity and its cash flows for at 31 December 2020 and of the profit and the year then ended. Unilever Pakistan Foods Limited Unilever Pakistan (the Company), which annexed financial statements of We have audited the of profit or loss account and , and the statement of financial position as at 31 December 2020 comprise the statement year then ended, the statement of cash flows for the income, the statement of changes in equity, other comprehensive other explanatory of significant accounting policies and statements, including a summary and notes to the financial of our to the best explanations which, information and the all obtained we have that we state and information, audit. were necessary for the purposes of the knowledge and belief, Opinion

Unilever Pakistan Foods Limited - Annual Report 2020 31 Unilever Pakistan Foods Limited - Annual Report 2020 32 Company’s revenue recognition Company’s revenue accounting policies by comparing with applicable accounting standards; testing the design and operating effectiveness of controls designed to ensure that revenue is recognized in the appropriate accounting period; revenue transactions recorded before and after the reporting date with underlying documentation to assess whether revenue has been recognized in the appropriate accounting period; posted to revenue to identify unusual or irregular items; and inspecting credit notes issued subsequent to year end for accuracy of revenue. of revenue, amongst others, included the of revenue, amongst following: Our audit procedures in respect of recognition Our audit procedures • the appropriateness of the Assessing • of and Obtaining an understanding • basis, specific Comparing, on a sample • journals Critically assessing manual • basis, invoices and Testing, on a sample How the matters were addressed in our audit How the matters were Revenue Recognition 26 to the financial Refer notes 4.19 and statements. is the most significant The amount of revenue on the statement of profit class of transaction is recognized when or loss account. Revenue control of the underlying products has been transferred to the customer. We identified revenue recognition as a key audit matter the since it is a key performance measure for Company and gives rise to the risk associated with the judgement in determining the transfer of control of goods. Key audit matters 1. S. No. Following are the Key audit matters: are the Key audit Following assessing the design and testing implementation of management controls over capitalization of property, plant and equipment and timely transfers from capital work-in-progress to operating fixed assets as per applicable accounting standards; assessing the design and testing assessing the design implementation of management’s controls over valuation of stock-in-trade including identification of slow moving and / or obsolete stock-in-trade and estimation of NRV; management’s determination of NRV and the key estimates adopted, including future selling prices and costs necessary to make the sales and their basis of calculation; and policies with regards to provisioning of slow moving and / or obsolete stock-in-trade; aging analysis of stock-in-trade and forecasted sales determined by management. Our audit procedures in respect of capitalization of property, plant and equipment, amongst others, included the following: • obtaining an understanding of and Our audit procedures in respect of valuation of Our audit procedures others, included the stock-in-trade, amongst following: • an understanding of and Obtaining • on a sample basis, Evaluating and testing, • of management’s assessing compliance How the matters were addressed in our audit How the matters were Capitalization of Property, Plant and Equipment Capitalization of Property, Plant and Refer notes 4.1 and 6 to the financial statements. The Company has incurred significant capital expenditure on expansion of manufacturing facilities. We identified capitalization of property, plant and equipment as a key audit matter because there is a risk that capitalization criteria as per applicable accounting standards may not be appropriately followed and transfer of assets from capital work-in-progress to operating fixed assets Valuation of stock-in-trade to the financial Refer notes 4.8 and 11 statements. a significant part of the Stock-in-trade forms Stock-in-trade comprise Company’s total assets. work in process of raw and packing materials, are stated at lower of and finished goods which cost and estimated net realizable value. as a We identified the valuation of stock in- trade risk key audit matter because there is a potential an of inappropriate valuation as determining appropriate write-down as a result of net cost realizable value (NRV) being lower than their - and provisions for slow moving and obsoles - cence stock-in-trade involve significant manage ment judgment and estimation. Key audit matters 3. 2. S. No.

Unilever Pakistan Foods Limited - Annual Report 2020 33 Unilever Pakistan Foods Limited - Annual Report 2020 34 expenditure incurred with supporting expenditure incurred assessing whether documentation and the criteria for the expenditure meets applicable capitalization as per and accounting standards; from capital timely transfer of assets work-in-progress to operating fixed assets which included assessing status of items in capital work-in-progress at year end and evaluating whether transfer of assets were made on a timely basis. • on sample basis, capital testing, • performing substantive procedures over How the matters were addressed in our audit How the matters were Key audit matters timely basis resulting in may not be done on depreciation charge for understatement of the year. S. No. Board of Directors are responsible for overseeing the Company’s financial reporting process. Board of Directors are responsible for overseeing the Company’s financial reporting In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as In preparing the financial statements, management is responsible for assessing and using the going concern basis of a going concern, disclosing, as applicable, matters related to going concern to cease operations, or has no realistic accounting unless management either intends to liquidate the Company or alternative but to do so. Management is responsible for the preparation and fair presentation of the financial statements in accordance with presentation of the financial Management is responsible for the preparation and fair of Companies Act, 2017 (XIX the accounting and reporting standards as applicable in Pakistan and the requirements to enable the preparation of financial of 2017) and for such internal control as management determines is necessary error. statements that are free from material misstatement, whether due to fraud or Responsibilities of Management and Board of Directors for the Financial Statements In connection with our audit of the financial statements, our responsibility is to read the Other Information and, in statements, our responsibility is to read the Other Information and, in In connection with our audit of the financial information is materially inconsistent with the financial statements or our doing so, consider whether the other appears to be materially misstated. If, based on the work we have knowledge obtained in the audit, or otherwise material misstatement of this Other Information, we are required to report that performed, we conclude that there is a fact. We have nothing to report in this regard. Management is responsible for the other information. The Other Information comprises the information included in the information. The Other Information comprises the information included in the Management is responsible for the other financial statements and our auditor’s report thereon. Annual Report but does not include the of any form information and we do not express statements does not cover the other Our opinion on the financial assurance conclusion thereon. Information Other than the Financial Statements and Auditor’s Report Thereon Information Other than the Financial and whether the financial statements represent the underlying transactions and events in a manner that and whether the financial statements represent achieves fair presentation. on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may on the audit evidence obtained, whether ability to continue as a going concern. If we conclude that a material cast significant doubt on the Company’s attention in our auditor’s report to the related disclosures in the uncertainty exists, we are required to draw are inadequate, to modify our opinion. Our conclusions are based on financial statements or, if such disclosures of our auditor’s report. However, future events or conditions may the audit evidence obtained up to the date as a going concern. cause the Company to cease to continue related disclosures made by management. appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the appropriate in the circumstances, but not Company’s internal control. error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is risks, and obtain audit evidence that audit procedures responsive to those error, design and perform The risk of not detecting a material misstatement to provide a basis for our opinion. sufficient and appropriate resulting from error, as fraud may involve collusion, forgery, resulting from fraud is higher than for one or the override of internal control. intentional omissions, misrepresentations, From the matters communicated with the Board of Directors, we determine those matters that were of most significance in From the matters communicated with the Board of Directors, we determine those key audit matters. We describe these the audit of the financial statements of the current period and are therefore the about the matter or when, in extremely matters in our auditor’s report unless law or regulation precludes public disclosure in our report because the adverse rare circumstances, we determine that a matter should not be communicated interest benefits of such communication. consequences of doing so would reasonably be expected to outweigh the public We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements We also provide the Board of Directors with a statement that we have complied other matters that may reasonably be regarding independence, and to communicate with them all relationships and thought to bear on our independence, and where applicable, related safeguards. We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit regarding, among other matters, the planned scope and timing of the audit We communicate with the Board of Directors that we identify during our audit. and significant audit findings, including any significant deficiencies in internal control • structure and content of the financial statements, including the disclosures, Evaluate the overall presentation, • of management’s use of the going concern basis of accounting and, based Conclude on the appropriateness • and of accounting policies used and the reasonableness of accounting estimates Evaluate the appropriateness • are of internal control relevant to the audit in order to design audit procedures that Obtain an understanding • due to fraud or of the financial statements, whether and assess the risks of material misstatement Identify As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain Pakistan, we exercise professional judgment accordance with ISAs as applicable in As part of an audit in throughout the audit. We also: professional skepticism Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from as a whole are financial statements about whether the assurance are to obtain reasonable Our objectives opinion. that includes our an auditor’s report error, and to issue due to fraud or whether material misstatement, with accordance in conducted audit an that guarantee a not is but assurance, of level high a assurance is Reasonable can arise from misstatement when it exists. Misstatements Pakistan will always detect a material ISAs as applicable in be expected to or in the aggregate, they could reasonably considered material if, individually fraud or error and are of these financial statements. decisions of users taken on the basis influence the economic Auditor’s Responsibilities for the Audit of the Financial Statements the Audit of the Financial Responsibilities for Auditor’s

Unilever Pakistan Foods Limited - Annual Report 2020 35 Unilever Pakistan Foods Limited - Annual Report 2020 36 KPMG Taseer Hadi & Co. Chartered Accountants Company and deposited in the Central Zakat Fund established under section 7 of that Ordinance. Company and deposited in the Central Company’s business; and Company’s business; the statement of changes in equity and the statement of cash flows together with the notes thereon have been flows together with the notes thereon in equity and the statement of cash the statement of changes books of 2017) and are in agreement with the with the Companies Act, 2017 (XIX of drawn up in conformity account and returns; Date: March 5, 2021 Karachi The engagement partner on the audit resulting in this independent auditor’s report is Moneeza Usman Butt. The engagement partner on the audit resulting d) Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the zakat deductible at source under the c) the year were for the purpose of the and guarantees extended during investments made, expenditure incurred b) income, or loss account and other comprehensive position, the statement of profit the statement of financial a) Act, 2017 (XIX of 2017); the Company as required by the Companies books of account have been kept by proper Based on our audit, we further report that in our opinion: our audit, we further Based on Report on Other Legal and Regulatory Requirements Other Legal and Regulatory Report on 5,157 2,980 81,637 32,050 18,594 13,854 14,408 203,749 724,556 140,520 902,351 426,235 868,282 2019 3,762,828 7,088,833 3,654,460 3,326,005 3,371 2,980 77,395 12,571 57,506 81,637 69,256 648,799 164,302 999,124 455,214 213,195 929,895 7,447,373 3,732,128 3,832,687 3,614,686 2020 (Rupees in thousand) 7 6 9 8 10 11 12 13 14 15 16 Note As at December 31, 2020 December at As Statement of Financial Position Financial of Statement Total assets spares Stores and Stock-in-trade - net Trade debts advances Loans and and short term prepayments Trade deposits Other receivables - net Sales tax refundable - net Taxation balances Cash and bank Current assets Property, plant and equipment Right-of-use assets Intangible assets Long term deposits Long term loans and advances Non-current assets ASSETS

Unilever Pakistan Foods Limited-Limited -Annual Annual Report Report 20202020

0037 Unilever Pakistan Foods Limited - Annual Report 2020 38 - - 34,717 35,217 27,348 63,699 24,141 21,504 30,392 105,054 280,539 304,680 2019 4,225,724 2,304,197 4,479,956 4,784,636 7,088,833 2,240,498 - 387 620 25,727 25,447 11,519 63,699 23,660 31,180 107,740 361,050 410,824 Aly Yusuf 7,447,373 2,747,694 4,699,679 4,112,349 2,683,995 4,288,855 2020 (Rupees in thousand) Director and Chief Financial Officer 7 7 17 19 20 21 22 23 24 25 18 Note Director Farheen Salman Amir R. Paracha Chief Executive Officer As at December 31, 2020 December at As Statement of Financial Position Financial of Statement The annexed notes 1 to 45 form an integral part of these financial statements. Contingencies and commitments Total equity and liabilities Total liabilities Trade and other payables Unpaid dividend Unclaimed dividend Provisions Accrued interest / mark up Current portion of lease liabilities Short term borrowings Current liabilities Staff retirement benefits Long term borrowing Lease liabilities Deferred taxation Non-current liabilities LIABILITIES Share capital Reserves Share capital and reserves EQUITY AND LIABILITIES

1,199 (4,134) (2,935) 385.08 304,339 2019 (178,067) (135,076) (391,596) (354,862) 2,942,876 2,807,800 5,502,423 2,452,938 2,450,003 (7,789,001) (2,294,223) 13,291,424

(Rupees)

6,452 4,581 Aly Yusuf (1,871) 602.42 409,454 (22,550) (Rupees in thousand) 2020 (217,546) (450,428) (285,906) 4,077,508 6,678,569 4,054,958 3,837,412 3,841,993 15,572,747 (2,274,181) (8,894,178) Director and Chief Financial Officer 34 26 27 28 29 30 31 32 33 Note Director Farheen Salman Amir R. Paracha Chief Executive Officer The annexed notes 1 to 45 form an integral part of these financial statements. Basic and diluted earnings per share Total comprehensive income Impact of deferred tax Gain / (Loss) on remeasurements of post Gain / (Loss) on remeasurements of post employment defined benefit obligation Other comprehensive income : Profit after taxation Taxation Profit before taxation Finance costs Operating profit Other income Other operating expenses Administrative expenses Distribution cost Gross profit Cost of sales Sales - net For the year ended December 31, 2020 December ended the year For Statement of Profit or Loss Account and Other and Other Account or Loss Profit of Statement Income Comprehensive

Unilever Pakistan Foods Limited - Annual Report 2020 39 Unilever Pakistan Foods Limited - Annual Report 2020 40

- (747) (810) 9,910 (3,762) 13,715 60,683 15,086 19,588 27,048 (14,581) 2019 122,559 353,400 (91,465) 213,036 (497,373) (141,524) (358,994) 4,105,679 1,428,137 1,441,852 3,161,200 2,807,800

- - 2,686 9,531 2,086 23,613 10,354 (9,446) 2020 283,794 139,222 413,068 230,363 (96,773) (23,782) (62,987) (55,402) (25,456) (99,015) (Rupees in thousand) (113,375) (110,689) 4,313,854 4,285,321 4,054,958 Effect on cash flows due to working capital changes Effect on cash flows due to working capital Decrease / (Increase) in current assets Stores and spares Stock in trade - net Trade debts Loans and advances term prepayments Trade deposits and short Sales tax refundable Other receivables Increase / (Decrease) in current liabilities Provisions Trade and other payables Cash flows from operating activities Cash flows from operating Profit before taxation charges and other items Adjustments for non-cash Depreciation Depreciation on right-of-use asset Gain on disposal of property, plant and equipment Reversal of provision for impairment of fixed assets Provision for staff retirement benefits Property, plant and equipments written off Mark-up on short term borrowings Return on savings accounts Cash generated from operations (carried forward) For the year ended December 31, 2020 December ended the year For Statement of Cash Flows Flows Cash of Statement

- 810 3,762 6,181 (3,905) 2019 (35,503) 513,517 175,822 689,339 4,105,679 (371,205)

(101,232) 3,635,518 (2,057,207) (1,064,794) (2,021,704) (1,069,366)

- 1,786 2020 Aly Yusuf 23,660 99,015 (1,493) (Rupees in thousand) 240,556 689,339 (36,076) (44,452) 929,895 (264,533) (361,469) (363,548) 4,313,854 3,908,226 (3,390,721) (3,403,137) Director and Chief Financial Officer 42 Note Director Farheen Salman Amir R. Paracha Chief Executive Officer Cash generated from operations (brought forward) Cash generated from The annexed notes 1 to 45 form an integral part of these financial statements. Net cash used In financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Mark up paid Income tax paid Staff retirement benefits - contributions paid Net cash from operating activities Decrease in long term loans Cash flows from investing activities Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment Return received on savings accounts Net cash used in investing activities Cash flows from financing activities Lease liability payments Proceeds from long term financing Dividends paid Statement of Cash Flows Flows Cash of Statement For the year ended December 31, 2020 December ended the year For

Unilever Pakistan Foods Limited - Annual Report 2020 41 Statement of Changes in Equity

For the year ended December 31, 2020 Unilever Pakistan Foods Limited - Annual Report 2020

SHARE RESERVES TOTAL CAPITAL CAPITAL REVENUE SUB TOTAL Issued, Share Special General Unappropriated subscribed and Premium Profit paid up capital (Rupees in thousand)

Balance as at January 1, 2019 63,699 1,296,499 628 138 531,599 1,828,864 1,892,563

Transactions with owners of the Company - Distribution

Final dividend for the year ended December 31, 2018 @ Rs. 76 per share - - - - (484,113) (484,113) (484,113)

First Interim dividend for the year ended December 31, 2019 @ Rs. 88 per share - - - - (560,551) (560,551) (560,551)

Second Interim dividend for the year ended December 31, 2019 @ Rs 63 per share - - - - (401,304) (401,304) (401,304)

Third Interim dividend for the year ended December 31, 2019 @ Rs 93 per share - - - - (592,401) (592,401) (592,401)

Total comprehensive income for the year

- Profit for year ended December 31, 2019 - - - - 2,452,938 2,452,938 2,452,938 - Other Comprehensive income for the year ended December 31, 2019 - - - - (2,935) (2,935) (2,935)

- - - - 2,450,003 2,450,003 2,450,003

Balance as at December 31, 2019 63,699 1,296,499 628 138 943,233 2,240,498 2,304,197

Final dividend for the year ended December 31, 2019 @ Rs. 142 per share - - - - (904,533) (904,533) (904,533)

First Interim dividend for the year ending December 31, 2020 @ Rs. 130 per share - - - - (828,094) (828,094) (828,094)

Second Interim dividend for the year ending December 31, 2020 @ Rs. 141 per share - - - - (898,163) (898,163) (898,163)

Third Interim dividend for the year ending December 31, 2020 @ Rs. 120.52 per share - - - - (767,706) (767,706) (767,706)

Total comprehensive income for the period

- Profit for the year ended December 31, 2020 - - - - 3,837,412 3,837,412 3,837,412

- Other Comprehensive income for the year ended December 31, 2020 - - - - 4,581 4,581 4,581

- - - - 3,841,993 3,841,993 3,841,993

Balance as at December 31, 2020 63,699 1,296,499 628 138 1,386,730 2,683,995 2,747,694

The annexed notes 1 to 45 form an integral part of these financial statements.

Amir R. Paracha Farheen Salman Aly Yusuf Chief Executive Officer Director Director and Chief Financial Officer

42

- 52-Km, Multan Road Lahore, Parna Plant Near Bhai Pheru. - - 4th Floor, Siddiqui Center, Abdali Masjid Road, Multan. - 12 - D East, SNC Centre, 1st Floor, Blue Area, Islamabad. - Shahpur Interchange, 14KM Multan Road, Lahore. - Beacon Impex Plaza, Bilal Road, New Civil Lines, Faisalabad. - 4th Floor, Shafi Court Building, Mereweather Road, Karachi. Plot #A/51-B SITE Area, Hyderabad. - - 1 Presentation of Financial Statements Amendments to IAS - 8 Accounting Policies, Changes in Accounting Estimates and Errors Amendments to IAS disclosure' and IFRS 7 'Financial instruments: instruments', 'Financial IFRS 9 to Amendments International Financial Reporting Standards (IFRS Standards) issued by the International Accounting International Financial Reporting Standards Provisions of and directives issued under the Companies Act, 2017. provisions of and directives issued under the Companies Act, 2017 have been followed. a) Changes in accounting policy resulting from adoption of new standard during the year Standards Board (IASB) as notified under the Companies Act, 2017; and Factory Sales Offices in accordance with the accounting and reporting standards as These financial statements have been prepared and reporting standards applicable in Pakistan comprise of: applicable in Pakistan. The accounting the year which are during or amended standards and interpretations became effective The following new not considered to be relevant to the Company's financial statements: IAS 39 'Financial Instruments: Recognition and Measurement' Kingdom. parent Company is Unilever PLC United of Conopco Inc. USA, whereas its ultimate The Company is a subsidiary The Company is a limited liability company incorporated in Pakistan and is listed on the Pakistan Stock Pakistan the on listed is and Pakistan in incorporated company liability limited a is Company The of Rafhan, food products under brand names and sells consumer and commercial Exchange. It manufactures Avari Plaza, office of the Company is situated at and Food Solutions. The registered Knorr, Energile, Glaxose-D Fatima Jinnah Road, Karachi. Karachi. Road, Jinnah Fatima For the year ended December 31, 2020 December ended the year For Notes to and forming part Statements Financial the and forming of to Notes 2.2 Changes in accounting standards, interpretations and pronouncements - of and directives issued under the Companies Act, 2017 differ from the IFRS Standards, the Where provisions 2.1 Statement of compliance - - Amendment to IFRS 3 ‘Business Combinations’ 2. OF PREPARATION BASIS facilities and sales offices of the Company are situated at the following locations: The manufacturing

1. AND ITS OPERATIONS THE COMPANY

Unilever Pakistan Foods Limited - Annual Report 2020 43 Unilever Pakistan Foods Limited - Annual Report 2020 44 renewals and improvements are capitalized only when it is probable that future economic benefits associated renewals and improvements are capitalized only when it is probable that future reliably. with the item will flow to the Company and the cost of the item can be measured impacting countries globally. Measures taken to contain the spread of Health Organization on March 11, 2020, social distancing, and closure of non-essential services and the virus, including travel bans, quarantines, to businesses worldwide, resulting in an economic slowdown. factories have triggered significant disruptions normal, or perhaps, adapting to the new normal, and the last vestiges Life in Pakistan is getting largely back to lifted. Offices, restaurants, schools and universities have reopened of partial lockdown restrictions are being distancing, wearing face masks and sanitization protocols. Based on with strict SOPs in place including social does not have a significant impact on the Company considering management’s assessment, COVID-19 to support the industry of imports and measures taken by Government demand from its customers, availability notes. in which the Company operates. policy accounting thousands of Rupees. and figures are rounded off to the nearest which are stated at cost less impairment losses, if any, except for free hold land and capital work in progress to charge off their cost impairment loss, if any. Depreciation is calculated using the straight line method Depreciation on additions is excluding residual value, if not insignificant, over their estimated useful lives. to the month of deletion. charged from the month in which asset is available for use and on disposals up IFRS 4 'Insurance Contracts': Recognition and Measurement 'Financial Instruments' , for effective be will thereto interpretations and amendments the and 2017 Act, Companies in the process of 01 January 2021. Management is accounting periods beginning on or after amendments and new standards: evaluating the impact of these b) reporting approved accounting and to published and amendments interpretations Standards, effective standards that are not yet recognized in the statement of profit or loss account. Gains and losses on disposal of property, plant and equipment are Maintenance and normal repairs are charged to statement of profit or loss as and when incurred. Major the World coronavirus (COVID-19) that first surfaced in China was classified as a pandemic by A novel strain of 3. BASIS MEASUREMENT cost convention except as disclosed in the These financial statements have been prepared under the historical of the Company functional currency which is the These financial statements are presented in Pakistan Rupees 4. POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING 4.1 The principal accounting policies applied in the preparation of these financial statements are set out below. Property, plant and equipment and accumulated Property, plant and equipment of each class is stated at cost less accumulated depreciation The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. 2.3 due to COVID-19 Effects on accounting policies during the year - Instruments: Disclosure' & IAS 39 Amendment to IFRS 9 'Financial Instruments' , IFRS 7 'Financial - Amendments to IFRS 16 ‘Leases’ ‘Leases’ 16 IFRS to Amendments - as notified under the Financial Reporting Standards (IFRS Standards) The following International

if any. Amortization is calculated using the straight line method to charge off their cost over their estimated if any. Amortization is calculated using the straight line method to charge off events or changes in circumstances whenever Intangible assets are reviewed for impairment useful lives. is recognized for the amount by indicate that the carrying amount may not be recoverable. An impairment loss an is the higher of amount recoverable recoverable amount. The carrying amount exceeds its which the asset’s asset’s fair value less costs to sell and value in use. asset. circumstances continue to support an indefinite useful life assessment for the in other comprehensive income of profit or loss account, except to the extent that it relates to items recognised income or directly in equity, or directly in equity. In this case, the tax is also recognised in other comprehensive as the case may be. involves the exercise of judgement about whether it depends on a specified asset, whether the Company on a specified asset, whether the of judgement about whether it depends involves the exercise has the of that asset, and whether the Company all the economic benefits from the use obtains substantially of the asset. right to direct the use expensed in the items, which are low value and leases of or less of 12 months term leases except for short straight-line basis over the lease term. statement of profit or loss account on a the interest rate implicit in the lease. If this rate cannot be readily commencement date, discounted using borrowing rate applicable in the market for such leases. determined, the Company uses the incremental to the related ROU asset) when there is a change in future lease remeasured (with a corresponding adjustment of an index or rate or in case of reassessment of options. payments in case of renegotiation, changes by the lessors. The ROU asset is depreciated over the shorter of refurbish the asset, less any incentives granted underlying asset. The ROU asset is subject to testing for impairment if the lease term or the useful life of the for owned assets. there is an indicator for impairment, as period. made during installations and construction with specific assets incurred and and advances connected for use. as and when assets are available to relevant property, plant and equipment These are transferred events and The useful lives of intangible assets are reviewed at each reporting date to determine whether 4.4 Taxation in the statement Income tax expense comprises of current and deferred tax. Income tax expense is recognised Intangible assets having definite useful life are stated at cost less accumulated amortisation and impairment, asset and a lease liability at the lease commencement date, The Company recognizes a right-of-use (ROU) the at not paid are that payment lease value of the present the at initially measured is The lease liability amortized cost using the effective interest rate method and The lease liability is subsequently measured at the initial lease liability, initial direct costs and the obligations to At inception, the ROU asset comprises 4.3 Intangible assets 4.2 Leases of the contract. This assessment is or contains a lease at inception The Company assesses whether a contract is Capital work-in-progress loss, if any. at cost less identified impairment stated It consists of all expenditures

Unilever Pakistan Foods Limited - Annual Report 2020 45 Unilever Pakistan Foods Limited - Annual Report 2020 46

contributions are made, both by the Company and the employees, to the fund at the rate of 6% per annum of management employees and 14% of base salary plus cost of living allowance in of the base salary respect of unionized staff respectively. Minimum and Normal tax regime at the applicable tax rates, after taking into account tax credits and tax and credits tax account into taking after rates, tax applicable the at regime tax Normal and Minimum any. rebates available, if used for reporting purposes and the amounts of assets and liabilities for financial the carrying amounts in a initial recognition of assets or liabilities Deferred tax is not recognized on the taxation purposes. and that affects neither accounting nor taxable profit at the transaction that is not a business combination is measured at the tax rates that are expected to be applied to the time of the transaction. Deferred tax based on the laws that have been enacted or substantively enacted temporary differences when they reverse, by the reporting date. be utilized. Deferred tax assets are reviewed at each reporting date against which temporary differences can no longer probable that the related tax benefit will be realized. and are reduced to the extent that it is amount this pay to obligation constructive or legal present a has Company the if paid be to expected amount employee and the obligation can be estimated reliably. as a result of past service provided by the contribution plans. does not hold fund further contributions if the pay to obligations no legal or constructive has Company The periods. and prior to employee service in the current benefits relating employees the pay all assets to sufficient due. Prepaid contributions are The contributions are recognized as employee benefit expense when they are payments is available. recognized as an asset to the extent that a cash refund or a reduction in the future The Company operates an approved contributory provident fund for all employees. Equal monthly 4.4.2 Deferred for temporary differences between the financial position method, providing Deferred tax is recognized using profits will be available asset is recognized to the extent that it is probable that future taxable A deferred tax 4.5 Short-term employee benefits A liability is recognized for the Short-term employee benefits are expensed as the related service is provided. 4.6 Staff retirement benefits schemes, including both defined benefit and defined The Company operates various post-employment 4.6.1 Defined contribution plans into a separate entity. A defined contribution plan is a plan under which the Company pays fixed contributions i) Provident fund 4.4.1 Current income streams of the Company under Final, is based on taxability of certain Provision for current taxation

have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present its determine to discounted is benefit That periods. prior and current the in service their for return in earned have in which they arise. value. Remeasurements are recognized in statement of profit or loss account in the period outflows using interest rates of high-quality corporate bonds or the market rates on government bond. These outflows using interest rates of high-quality which the benefits will be paid, and that have terms to maturity are denominated in the currency in pension obligation. approximating to the terms of the related was carried out latest actuarial valuation on the basis of the actuarial valuation. The Contributions are made Unit Credit Method’. as at December 31, 2020, using the ‘Projected in which they occur. immediately, with a charge or credit to other comprehensive income in the periods basis of actuarial valuation. The permanent employees are eligible for these awards. Contributions are made on the latest actuarial valuation was carried out as at December 31, 2020. usually dependent on one or more factors such as age, years of service and compensation. A defined benefit plan is usually dependent on one or more factors plan. The liability recognized in the statement of financial position in a plan that is not a defined contribution respect of defined benefit defined benefit obligations at the end of the reporting plans is the present value of the The defined benefit obligations are calculated annually by independent period less the fair value of plan assets. When the calculation results in a potential asset for the Company, actuary using the projected unit credit method. value of economic benefits available in the form of any future refunds the recognized asset is limited to the present to the plans. from the plan or reductions in future contributions management employees: employees: management b) plan in lieu March 31, 2012 and opted for DC Pension employees who joined on or before permanent pension and management gratuity. benefits under the existing of future 4.6.3 Other long-term employee benefits obligation in respect of long-term employee benefits is the amount of future benefit that employees The Company's net Company. of the employees non-management for scheme funded gratuity the The Company operates position financial statement of the in recognized are remeasurements of result a as arising amount The Past-service costs are recognized immediately in statement of profit or loss account. are determined by discounting the estimated future cash of the defined benefit obligations The present values term service The Company provides long awards specified years of service. All full-time for staff completing 4.6.2 Defined benefit plans pension or gratuity that an employee will receive on or after retirement, Defined benefit plans define an amount of a) 1, 2012; and who joined on or after April permanent employees salary. are made by the Company to the plan at the rate of 9% per annum of the base Contributions ii) DC Pension Fund Pension Fund for the following has established a defined contribution plan - DC The Company

Unilever Pakistan Foods Limited - Annual Report 2020 47 Unilever Pakistan Foods Limited - Annual Report 2020 48 at invoice value plus other charges incurred thereon. Cost comprises invoice value and other direct costs but comprises invoice value and other direct other charges incurred thereon. Cost at invoice value plus in moving items where necessary and is recognized costs. Provision is made for obsolete / slow excludes borrowing or loss account. the statement of profit of work in value and other charges paid thereon. Cost in transit where it represents invoice method except for those of raw and packing materials, direct labour and related production process and finished goods include cost selling price in the ordinary course of business less cost necessary overheads. Net realizable value is the estimated Provision is made for obsolete / slow moving stocks where necessary and to be incurred in order to make the sale. account. recognized in the statement of profit or loss considered irrecoverable are written off. Actual credit loss over past years value of consideration receivable. Assets for doubtful debts as per IFRS 9 'Financial Instruments'. is used to base the calculation of provision with maturities of three months or less and short term finance. current and savings accounts, deposit accounts that it is impaired. A financial assessed at each reporting date to determine whether there is any objective evidence events have had a negative asset is considered to be impaired if objective evidence indicates that one or more effect on the estimated future cash flows of that asset. profit or loss account. When a subsequent event causes the of statement in the Losses are recognized as an expense of profit or loss account. amount of impairment loss to decrease, this reduction is reversed through the statement asset's recoverable impairment. If any such indication exists, then the ascertain whether there is any indication of of profit or loss account for amount is estimated. An impairment loss is recognized as an expense in the statement The recoverable amount is the the amount by which the asset's carrying amount exceeds its recoverable amount. through discounting of the higher of an asset's fair value less cost to sell and value in use. Value in use is ascertained assessment of the time value of estimated future cash flows using a discount rate that reflects current market assets are grouped at the lowest money and the risk specific to the assets. For the purpose of assessing impairment, levels for which there are separately identifiable cash flows (cash-generating units). 4.8 Stock in trade the weighted average at the lower of cost and net realizable value. Cost is determined using Stock in trade is valued 4.9 Trade and other receivables fair measured at originated and are they recognised when initially are and cost at amortized classified are These 4.10 Cash and cash equivalents hand, with banks on of the cash flow statement, cash and cash equivalents comprise cash in For the purposes 4.11 Impairment 4.11.1 assets Financial In addition to the impairment of financial assets under expected credit loss method under IFRS 9, a financial asset is assets Non-financial asset levels. assets at specific receivable and other financial for impairment evidence of Company considers The 4.11.2 of non-financial assets other than inventories, are assessed at each reporting date to The carrying amounts 4.7 Stores and spares stated if any, except for items in transit which are average cost less impairment loss, These are valued at weighted past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable past events, it is probable that an outflow estimate of the amount can be made. becomes legally or constructively committed to incur. recognized in the period in which the Company price. its to attributable directly are that costs transaction FVTPL, at not item an plus, for value fair at measured initially is initially measured at the acquisition or issue. A trade receivable without a significant financing component transaction portion of financial financial asset or a derecognizes a contractual provisions of the instruments. The Company comprise the financial asset or asset when, and only when, the Company loses control of the contractual rights that a portion of financial assets. While a financial liability or part of financial liability is derecognized from the statement specified in the contract is of financial position when, and only when, it is extinguished i.e. when the obligation of the financial assets and discharged, cancelled or expired. Any gain or loss on the recognition or derecognition liabilities is taken to statement of profit or loss account or other comprehensive income. at: amortised cost; FVOCI or received respectively. On initial recognition, a financial asset is classified as measured FVTPL and financial liabilities are classified as measured at amortised cost or FVTPL. borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. borrowing costs that are directly attributable as part of the cost of that qualifying asset. Such borrowing costs, if any, are capitalized paid in future for goods and services. services. and goods the recoverable used to determine a change in the estimates if there has been loss is reversed An impairment exceed the the asset's carrying amount does not loss is reversed only to the extent that amount. An impairment for had loss impairment no if amortization, or been determined, net of depreciation would have that carrying amount reversal than goodwill) are reviewed for possible impairments of non-financial assets (other been recognized. Prior future at each reporting date. in paid payments, relocation and dismantling of factory, and are Restructuring cost provisions comprise staff redundancy 4.15 Financial assets and liabilities is A financial asset (unless it is a trade receivable without a significant financing component) or financial liability becomes a party to the Financial assets and financial liabilities are recognized at the time when the Company and liabilities are initially measured at cost, which is the fair value of the consideration given and All financial assets 4.14 Provisions Company has a present legal or constructive obligation as a result of Provisions, if any, are recognized when the to the extent of costs are recognized as an expense in the period in which these are incurred except Borrowing 4.12 Trade and other payables be to consideration the of value fair is the which cost at carried are payable amounts other and trade for Liabilities 4.13 Borrowings and their cost cost incurred. Borrowings are recorded initially at fair value, net of transaction

Unilever Pakistan Foods Limited - Annual Report 2020 49 Unilever Pakistan Foods Limited - Annual Report 2020 50 exchange rates ruling on that date. Foreign exchange gains and losses resulting from the settlement of such exchange rates ruling on that date. Foreign end exchange rates of monetary assets and liabilities denominated in transactions and from the translation at year of profit or loss account. foreign currencies are recognized in the statement (i.e. either upon their control customer obtains when the to customer. Goods are transferred promised goods Revenue is recognized at transaction price which is mutually agreed shipment or delivery of goods to customers). between the Company and counterparty. rate. basis. interest receipt basis, taking effect of the Return on savings accounts and deposit accounts is recognized on time proportion effective on recognized year in which these are approved. vesting period, corresponding statement of profit or loss account equivalent to the fair value of shares over the liability created is reflected in trade and other payables. of profit or loss account. instruments granted. Any changes in the liability are recognized in the statement the date of transaction. transaction. of date the outstanding during the period. period. value, and derivatives are measured at fair loss as incurred. Subsequent to initial recognition, statement of profit or profit or loss account. generally recognized in the statement of changes therein are the during shares by the weighted average number of ordinary ordinary shareholders of the Company or loss attributable to outstanding 4.19 Revenue recognition Revenue from sale of goods is recognized when the Company obligation by transferring satisfies a performance 4.19.1 Income Miscellaneous Dividend income is recognized when the Company’s right to receive the payment is established. Miscellaneous income is Service income is recognized on accrual basis at rate agreed with counter parties. 4.20 Dividend and appropriations in the Dividend distribution to the Company's shareholders and appropriations to / from reserves are recognized 4.21 Share based payment employees is reflected by recording a charge in the The cost of awarding shares of associated companies to reporting date and at settlement date based on the fair value of the equity The liability is remeasured at each at Rupees translated into Pakistan are date reporting at currencies foreign in liabilities and assets Monetary are translated to Pakistan Rupees at the exchange rate ruling at Transactions denominated in foreign currencies 4.17 Earnings per share is calculated by dividing the profit share (EPS) data for its ordinary shares. EPS Company presents earnings per The 4.18 Foreign currency transactions and translation 4.16 instruments Derivative financial in the directly attributable transaction costs are recognized recognized at fair value. Any Derivatives are initially significant to the financial statements are disclosed below: significant to the financial statements are on certain issues in the past. There may be various matters where the decisions taken by appellate authorities by the income tax department at the assessment stage and where Company's view differs with the view taken items of a material nature is in accordance with the law. The difference the Company considers that its view on liability. between the potential and actual tax charge, if any, is disclosed as a contingent assets, based on actuarial valuation of present value of defined benefit obligations and fair value of plan that are believed to be reasonable under the circumstances. including expectations of future events applicable in Pakistan requires the use of certain critical accounting estimates. It also requires management to applicable in Pakistan requires the use a areas involving policies. The Company’s accounting applying the process of in the its judgment exercise or areas where assumptions and estimates are significant to the higher degree of judgment or complexity, intends either to settle recognized amounts and the Company a legally enforceable right to set-off the there is simultaneously. realize the assets and to settle the liabilities on a net basis, or to operating decision maker of the Company. reviewed by the chief and restructuring where a legal or constructive obligation exists at the reporting date and reliable estimate can reporting date at the obligation exists a legal or constructive restructuring where and is involved in estimating the be made of the likely outcome. The nature of these costs is such that judgment timing and amount of cash flows. stores / in trade stock of provision for obsolescence of assets, as impairment assets such the of carrying amount and spares and allowance for impairment of trade debts.

advice. advice. financial statements are disclosed below. below. disclosed are statements financial 5.1 Income taxes the current income tax law and the Company takes into account In making the estimates for income taxes, 5.2 Defined benefit plans has adopted certain actuarial assumptions as disclosed in note 19 to the financial statements for The Company and estimates are involving a higher degree of judgment or complexity, or areas where assumptions The areas experience and other factors, and judgments are continually evaluated and are based on historical Estimates standards as of financial statements in conformity with the accounting and reporting The preparation statements only when the net amount is reported in the financial assets and liabilities are offset and Financial 4.23 Operating segment information segment consistent with the are prepared on the basis of single reporting The financial statements 5. ACCOUNTING ESTIMATES AND JUDGEMENTS CRITICAL 4.22 liabilities Offsetting of financial assets and financial while calculating the provisions which are adjustments to the Significant assumptions are also involved 5.3 Provisions among others, for legal matters, disputed indirect taxes, employee termination cost Provisions are considered,

Unilever Pakistan Foods Limited - Annual Report 2020 51 Unilever Pakistan Foods Limited - Annual Report 2020 52 2019 455,748 3,654,460 3,198,712

(Rupees in thousand) 2020 201,546 3,732,128 3,530,582 6.1 6.3 Note commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily commencement date, discounted using the interest rate implicit in the lease uses its incremental determined, the Company's incremental borrowing rate. Generally, the Company borrowing rate as the discount rate. expected credit loss that result from all possible default events over expected life of the financial asset. expected credit loss that result from all cost which comprises the initial amount of the lease liability adjusted right-of-use asset is initially measured at the commencement date, plus any initial direct costs incurred and for any lease payments made at or before the underlying asset or to restore the underlying asset to the site an estimate of costs to dismantle and remove received. on which it is located less any lease incentives life of the right-of-use asset or the end of the lease term. The date to the earlier of the end of the useful as those of fixed assets. In same basis the on are determined estimated useful lives of right-of-use assets reduced by impairment losses, if any, and adjusted to certain addition, the right-of-use asset is periodically including expectations of future events that are believed to be reasonable under the circumstances. of future events that are believed to including expectations for. on possible impairment basis. Any change in an annual affect the carrying the estimates in future years might / intangible assets with a corresponding items of property, plant and equipment amounts of the respective / amortization charge and impairment. effect on the depreciation provided fully experience and are continuously reviewed and the cost of such stocks These estimates are based on historical is customer and is included in trade and other payables.

remeasurements of the lease liability. liability. lease the of remeasurements Operating assets Capital work in progress

5.8 Rebate accrual accrual Rebate 5.8 are not paid at the The lease liability is initially measured at the present value of the lease payments that 5.6 Trade debts and other receivables receivables other and debts Trade 5.6 Leases amount equal to lifetime financial assets are adjusted for loss allowances that are measured at These 5.7 The right-of-use asset and a lease liability at the lease commencement date. The Company recognises a asset is subsequently depreciated using the straight line method from the commencement The right-of-use 5.4 / intangible assets Property, plant and equipment value of assets for useful life, residual value and reviews the rate of depreciation / amortization, The Company 5.5 Stock in trade, stores and spares may have become obsolete. any items which for existence of reviews its inventory The Company continuously other factors, based on historical experience and are continually evaluated and are Estimates and judgments

6. PROPERTY, PLANT AND EQUIPMENT Accrual for rebate is recognized as deduction from revenue based on terms of the arrangements with the

- - 781 (781) 54,902 14,581 (67,982) 615,664 (17,004) (37,898) (67,982) (283,794) (213,036) 1,669,002 3,530,582 3,198,712 3,198,712 5,184,424 3,198,712 4,569,541 3,530,582

Total (1,585,860) 1,728,165 (1,302,847)

------

------

------20

- 1,405 1,405 (1,405) (1,405) Motor vehicles

20 - - - 76 65 210 (86) (76) (86) (210) 3,663 10,106 37,958 22,139 (2,673) (2,131) 23,736 23,736 47,988 31,169 and

23,736 31,169 (16,733) (14,136) fittings Furniture

- - - - (25) (378) (620) (620) 1,625 63,074 (2,255) (1,600) 63,074 (8,024) 11,349 63,074 48,055

54,358 10 to 25 (73,892) (81,916) 137,586 185,641 103,105

103,105 and office Electrical, equipment mechanical

- - 705

(705) 7 to 10 53,067 17,286 (Rupees in thousand) 381,681 (16,979) (27,313) (36,088) (27,313) Plant and (238,783) machinery (183,972) (995,742) 3,588,163 2,327,030 2,327,030 3,207,187 2,184,132 2,184,132 1,169,679 2,184,132

(1,233,820)

1,181,139

------

------25 ments 14,918 improve- 14,918 (14,918) Leasehold (14,918)

------2.5 land freehold (2,392) Building on 175,822 465,835 919,591 (24,678) (34,314) (39,963) (39,963) 919,591 919,591

1,061,099 480,826 (202,754) 1,162,308

(237,068) 1,061,099 1,338,130

------

- - - - -

- -

- - - land - Freehold 8,179 8,179 8,179 8,179 8,179 8,179 8,179 8,179 Gross carrying value basis At December 31, 2019 Cost Provision for impairment of fixed assets Accumulated depreciation Closing NBV Depreciation rate % per annum Net carrying value basis Year ended December 31, 2019 Opening Net Book Value (NBV) Additions (at cost) Disposals Cost Accumulated depreciation Reversal of provision for impairment of fixed assets Disposals (NBV) Depreciation charge Net charge of provision for impairment of fixed assets Closing NBV Gross carrying value basis At December 31, 2020 Cost Provision for impairment of fixed assets Accumulated depreciation Closing NBV Net carrying value basis 2020 Year ended December 31, (NBV) Opening Net Book Value Additions (at cost) Disposals Cost Accumulated depreciation Disposals (NBV) Depreciation charge Closing NBV 6.1 Operating assets

Unilever Pakistan Foods Limited - Annual Report 2020 53 Unilever Pakistan Foods Limited - Annual Report 2020 54 4,474 7,951 1,065 8,122 19,097 27,048 17,590 12,571 10,789 18,594 34,853 Total 207,497 111,374 455,748 213,036 336,252 (27,048) (23,613) area (sq. ft) - - - - - (Rupees in thousand) (Rupees in thousand) (Rupees in thousand) (Rupees in thousand) 2020 2019 2020 2019 2020 2019 5,173 5,676 7,951 3,527 9,958 2,838 Motor (5,173) vehicles 15,662 23,613 275,280 283,794 201,546 188,061 27 29 28 (Rupees in Thousand) 9,317 27 28 Note 17,590 10,789 11,245 12,452 (15,662) (13,924) Plant and Machinery Note Usage of immovable property Covered - - 9,277 1,326 17,228 (7,951) (7,951) Building 7.2

Note Address Parna Plant Near Bhai Pheru

Location Cost of sales Plant and machinery Cost of sales As at January 1, 2019 Addition As at December 31, 2019 Distribution costs

7.2 charge for the year pertaining The depreciation to right of use assets is as follows: Civil works Advances to suppliers

6.3 – at cost Capital work in progress

6.4 of immovable asset of the Company are as follows: Particulars Foods Factory 52-Km, Multan Road Lahore, Plant Manufacturing 717300 sq. feet Distribution costs Administrative expenses

6.2 for the year has been allocated The depreciation charge as follows: Depreciation expense Addition Depreciation expense As at December 31, 2020 7.1 Right of use of asset 7. LEASES - 4,429 9,276 5,157 10,789 55,106 30,392 30,392 30,392 81,637 94,578 20,000 (4,119) (39,932) 254,239 139,661 (172,602) 387 (Rupees in thousand) (Rupees in thousand) (Rupees in thousand) (Rupees in thousand) 2020 2019 1,374 2020 2019 2020 2019 6,147 3,371 17,590 11,906 11,906 94,578 81,637 11,519 30,392 20,000 (2,776) 139,661 254,239 (37,450) (172,602) 13 9.1 Note Current As at December 31 Company has used incremental borrowing rate as its discount rate. Company has used incremental borrowing Additions Current the movements during the year: amount of lease liabilities and the movements during Set out below the carrying underlying brand, Glaxose-D, will operate in the market for an indefinite period of time. underlying brand, Glaxose-D, will operate in the market for an indefinite period amount includes profit flows for a period of five years. Key assumptions used in estimation of recoverable and discount rate. forecasts (based on both internal and external market information and past performance) assumptions to key reasonably possible change a the carrying amount sufficiently such that valuation exceeds is unlikely to result in an impairment of Glaxose-D. (now GlaxoSmithKline Pakistan Limited). Limited). Pakistan GlaxoSmithKline (now Gross carrying value basis Cost Executives

Payments Accretion of interest Non - As at January 1 7.3 Lease Liabilities of Glaxose-D in 1999 to Glaxo Wellcome Pakistan Limited The above represents amount paid for the acquisition cash discounted using the determined amount has been recoverable estimated the testing, For impairment discount rate used is 11.06% (2019: 13.25%), a pre-tax measure based on government bonds rate. The The has assessed the useful life of the intangible as indefinite, since it is expected that the The management - Goodwill - Agreement in restraint of trade - Trademark impairment Accumulated amortization and Net book value 8. INTANGIBLE ASSETS Recoverable within one year

9. LONG TERM LOANS AND ADVANCES - considered good

Unilever Pakistan Foods Limited - Annual Report 2020 55 Unilever Pakistan Foods Limited - Annual Report 2020 56 9,276 3,817 (4,445) 25,022 19,603 17,309 (55,528) (40,864) (11,850) 555,907 611,435 321,422 902,351 125,362 144,965 140,520 362,286 - (Rupees in thousand) 9,276 6,147 2020 2019 2020 2019 2020 2019 31,071 19,490 (5,593) (Rupees in thousand) (Rupees in thousand) (3,129) 417,767 593,057 374,996 999,124 620,203 150,405 164,302 169,895 (42,771) (27,146)

the year. inventory of Rs. 72.1 million (2019: Rs. 69.44 million) by utilizing the provision during STORES AND SPARES SPARES AND STORES Stores Raw and packing materials (including in transit Raw and packing materials (including in The maximum aggregate amount of loans due from executives at the end of any month during the year was The maximum aggregate amount of loans Loans to employees have been provided to facilitate purchase of houses and vehicle in accordance with the of houses and vehicle in accordance have been provided to facilitate purchase Loans to employees Stock in trade includes Rs. 416.15 million (2019: Rs. 368.47 million) held with third parties. parties. Stock in trade includes Rs. 416.15 million (2019: Rs. 368.47 million) held with third and has written off The Company made a provision of Rs. 45.6 million (2019: Rs. 65.92 million) for obsolescence - Opening balances (2019: Rs. 1.89 million)) Spares (including in transit Rs. 1.75 million Provision for obsolescence 10. Work in process Finished goods Provision for obsolescence 11. STOCK IN TRADE million) Rs. 62.3 million; 2019: Rs. 118.46 Provision for obsolescence Rs. 8.94 million (2019: Rs. 16.75 million). 9.3 over a period of five years and are interest free. Company's policy which are repayable 9.2 11.2 11.1 - Disbursements - Repayments 9.1 amount of loans to executives: Reconciliation of carrying

864 394 214 251 9,735 8,657 4,119 14,014 14,408 13,854 (46,742) 915,024 868,282 31,799 32,050

- - 2,776 (Rupees in thousand) 2020 2019 2020 2019 2020 2019 69,256 4,177 77,395 48,736 28,659 66,480 66,480 (Rupees in thousand) (Rupees in thousand) 57,506 53,329 514,264 455,214 (59,050)

15.1 15.2 Note 14.2 14.1 Note

impaired. These relate to independent customers for whom there is no recent history of default. impaired. These relate to independent customers Rs. 22.81 million (2019: Rs. 0.98 million) during the year . Rs. 22.81 million (2019: As of December 31, 2020, trade debts of Rs. 3.6 million (2019: Rs. 26.51 million) were past due but not materially As of December 31, 2020, trade debts of Workers' Profit Participation Fund Trade deposits The Company has charged a provision of Rs. 35.12 million (2019: Rs. 20.06 million) and has written off debtors of Rs. 20.06 million) and has written off a provision of Rs. 35.12 million (2019: The Company has charged Trade debts Current portion of loans to executives Trade deposits with respect to payments made to custom authorities. Primarily consists of media bulk discount on airing TV commercials. 12.2 Others 15. OTHER RECEIVABLES Prepayments

14. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS 12.1 impairment Less: Allowance for 12. TRADE DEBTS Advances to: - executives employees - other others - suppliers and

13. LOANS AND ADVANCES - considered good 14.1 14.2

Unilever Pakistan Foods Limited - Annual Report 2020 57 Unilever Pakistan Foods Limited - Annual Report 2020 58 251 153 44,766 128,810 (44,766) (83,793) 724,403 724,556 400,219 324,184 (128,559) 251 178 (251) 4,177 (Rupees in thousand) (Rupees in thousand) (Rupees in 2020 2019 2020 2019 196,048 929,717 661,375 268,342 929,895 (191,871) (191,620)

16.1 16.2 Note

This includes an amount of Rs. 114.66 million (2019 Rs. 157.59 million) in respect of cash margin on imports kept This includes an amount of Rs. 114.66 million (2019 Rs. 157.59 million) in respect With banks on: per annum (2019: 8.00% to Mark-up on savings accounts was at rates ranging from 6.21% to 12.86% This includes an amount of Rs. 27.51 million pertaining to associated undertakings out of which Rs.26.13 which of out undertakings associated to 27.51 million pertaining Rs. of an amount includes This Balance as at January 1 Balance as at January with commercial banks. commercial with Cash in hand 16.2 - savings accounts - current accounts 12.80% per annum). 16. BANK BALANCES CASH AND 16.1 bracket of more than six months but not later than one year and the remaining assets fall under the age The maximum amount due from falling under the age bracket of greater than 2 years is Rs 1.38 million. undertakings during the year was Rs. 5.041 million. associated 15.2 year Allocation for the Paid to the fund fund Refunded by the 31 Balance as at December 15.1 Workers' Profit Participation Fund 242 628 138 14,516 63,699 48,941 200,000 2019 943,371 943,233 1,297,127 1,296,499 2,240,498 242 628 138 (Rupees in thousand) (Rupees in thousand) 2020 2019 14,516 63,699 48,941 2020 200,000 1,297,127 1,386,730 1,296,499 2,683,995 1,386,868 18.1 Note 10 each Ordinary shares of Rs. Ordinary shares of Rs. 10 each allotted: for consideration paid in cash for consideration other than cash as bonus shares 24,196 shares 20,000,000 Authorised share capital Authorised share Number of and paid up capital Issued, subscribed - Share premium - General Number of This reserve can be utilized by the Company only for the purpose specified in section 81 of the Companies Act, 2017. This reserve can be utilized by the Company only for the purpose specified in section As at December 31, 2020, Conopco Inc. USA, subsidiary of Unilever P.L.C., held 4.88 million (2019: 4.88 million) million (2019: 4.88 4.88 held of Unilever P.L.C., Conopco Inc. USA, subsidiary 2020, 31, December As at Revenue reserves As stated in note 4.6, the Company operates a retirement benefit plan (The Plan) namely approved funded defined As stated in note 4.6, the Company operates a retirement benefit plan (The Plan)

benefit gratuity scheme for all non-management employees subject to minimum service of prescribed period in benefit gratuity scheme for all non-management employees subject to minimum and the latest actuarial valuation the respective trust deed. Actuarial valuation of the plan is carried out every year was carried out as at December 31, 2020. 18.1 ordinary shares of Rs. 10 each. 17.1

- Special - Unappropriated profit Capital reserves 18. RESERVES

shares 1,451,659 4,894,095 6,369,950 17. CAPITAL SHARE 19.1 19. STAFF RETIREMENT BENEFITS

Unilever Pakistan Foods Limited - Annual Report 2020 59 Unilever Pakistan Foods Limited - Annual Report 2020 60

645 (645) 3,489 3,477 1,744 4,262 6,006 4,262 5,221 3,489 2019 4,134 27,545 26,098 (1,385) (1,385) 27,545 40,098 51,685 (24,141) (51,686)

Funded Gratuity 789 (789) 2,897 5,142 6,109 3,212 5,142 8,039 2020 29,983 (5,663) 27,545 (Rupees in thousand) 29,983 51,685 (1,563) (5,663) (1,563) (6,452) 55,710 (25,727) (55,710) 19.5 19.6 Note

Present value of defined benefit obligation at December 31 Present value of defined benefit obligation Deficit Balances as at January 1 Fair value of plan assets at January 1 Plan assets held in trust are governed by local regulations which mainly includes Trust Act, 1882, Companies Act, 1882, Companies includes Trust Act, which mainly by local regulations held in trust are governed Plan assets The latest actuarial valuation of the Fund as at December 31, 2020 was carried out using the 'Projected Unit Credit out using the 'Projected Unit Credit carried 2020 was of the Fund as at December 31, The latest actuarial valuation trustees are employees of the Company. Company. the of employees Listed Securities) Regulations, 2018 in (Investment 2002, Employees Contributory Funds Rules, Tax 2017, Income are including investment Responsibility for governance of the Plan, the Plan. Trust deed of and Rules under the and all Trustees. The Company appoints the trustees schedules, lies with the Board of decisions and contribution trustees Method'. Details of the Fund as per the actuarial valuation are as follows: Fund as per the actuarial valuation are Method'. Details of the 19.2 19.3 Current service cost Net interest cost 19.8 Expense recognised in statement of profit or loss account Remeasurements recognised in Other Comprehensive Income Experience loss / (gain) Remeasurement of fair value of plan assets Remeasurements 19.7 recognised in statement of profit or loss Expense 19.4 Reconciliation 31 Fair value of plan assets at December 19.5 Movement in the present value of defined benefit obligation Benefits paid by the plan Current service costs Interest cost Remeasurement on obligation 19.6 as at December 31 Balance assets Movement in the fair value of plan Benefits paid by the plan Interest income Remeasurement on plan assets Fair value of plan assets at December 31

- 773 9,809 7,556 6,006 4,134 14,000 (2,507) 2019 27,545 24,140 11,914 12.00% 10.00%

Funded Gratuity - 752 7,323 8,039 13,304 29,983 25,727 12,673 24,140 (6,452) (4,069) 2020 (Rupees in thousand) 8.00% 10.00%

matching (ALM) framework that has been developed to achieve long-term investments that are in line with the matching (ALM) framework that has been Within this framework, the Company’s ALM objective is to match assets obligations under the Retirement benefit plan. with maturities that match the to the retirement benefit obligations by investing in long-term fixed interest securities monitors how the duration benefit payments as they fall due and in the appropriate currency. The Company actively benefit Retirement from the outflows arising cash expected matching the the investments are expected yield of and the previous periods. The used to manage its risks from plan obligations. The Company has not changed the processes such that the failure of any single Company does not use derivatives to manage its risk. Investments are well diversified, of assets in 2020 consists of investment would not have a material impact on the overall level of assets. A large portion saving and shares offer the best Government bonds, National Savings and shares. The Company believes that national returns over the long term with an acceptable level of risk. are based on gross redemption underlying the current investment policy. Expected yields on fixed interest investments yields as at the reporting date. calculated by the actuary. gratuity funds according to the actuary's advice. Expense of the defined benefit plan is Discount rate at December 31 Future salary increases 19.11 Actuarial assumptions Net liability at January 1 Charge for the year the year to the Fund Contribution made during Income in Other Comprehensive Remeasurements recognised 19.10 as at December 31 Recognised liability / (asset) Plan assets comprise of following: Shares Government Bonds National Savings Cash at bank Due to the Company Total as at December 31 19.9 liability Net recognised 19.12 Mortality was assumed to be 70% of the EFU(61-66) Table. 19.13 asset-liability an within managed are positions investment the that ensures Company the plan, funded the of case In 19.14 available on the assets The expected return on plan assets was determined by considering the expected returns to amount to Rs. 11.4 million. The Company's contribution to the gratuity fund in 2021 is expected to the The actuary conducts separate valuations for calculating contribution rates and the Company contributes out as at December 31, 2020. Figures in this note are based on the latest actuarial valuation carried

Unilever Pakistan Foods Limited - Annual Report 2020 61 Unilever Pakistan Foods Limited - Annual Report 2020 62 - 7,519 (6,516) Decrease in 41,308 Total assumption - 7,594 (6,353) (Rupees in thousand) 28,680 Over 5 years Increase in assumption 11,356 Impact on defined benefit obligation Impact on defined benefit Between 2-5 years 1.00 % 1.00 % Change in assumption (Percentage) (Rupees in thousand) 632 Between 1-2 years 640 a year Less than Discount rate at December 31 Discount rate at December Future salary increases Future pension increases

assumptions analysis for actuarial Sensitivity

At December 31, 2020 recognized in the current year in relation to these contributions was Rs. 15.88 million (2019: Rs. 21.52 million). recognized in the current year in relation to these contributions was Rs. 15.88 million The Company's contributions towards the Rafhan Best Foods Limited Employees Gratuity Fund for the year The Company's contributions towards for returns over the entire life of related obligation. of the Fund, at the beginning of the period,

ended December 31, 2020 amounted to Rs. Nil (2019: Nil). ended December 31, 2020 amounted to statement of financial position. position. financial changes in some of the assumptions may be correlated. When In practice, this is unlikely to occur, and benefit calculating the sensitivity of the defined to significant actuarial assumptions the same obligation of obligation calculated with the projected unit credit method at the method (present value of the defined benefit as when calculating the pension liability recognized within the end of the reporting period) has been applied statement the previous period. 19.19 operates a couple of defined contribution plans which receives fixed contributions. The expense The Company also the weighted principal assumptions is: benefit obligation to changes in The sensitivity of the defined 19.15 19.16 on the market expectations and depends upon the asset portfolio The expected return on plan assets is based 19.17 to not change compared did the sensitivity analysis assumptions used in preparing methods and types of The all other assumptions constant. The sensitivity analysis are based on a change in an assumption while holding the obligation if life expectancy increases by 1 year. There is no significant change in Retirement benefit plans

Expected maturity analysis of undiscounted retirement benefit plans. 19.18 The weighted average duration of the defined benefit obligation is 13.9 years. 5,242 1,924 4,512 (6,067) (2,785) (8,568) 22,742 67,860 11,169 63,399 91,094 16,868 (28,290) (76,017) (16,917) (13,390) 328,572 356,556 280,539 811,244 568,105 1,375,487 4,225,724 1,214,062 - 341 (519) (845) 3,567 9,117 7,120 4,493 1,563 2020 (Rupees in thousand) 2019 23,170 (3,378) 97,538 (21,430) 377,609 404,346 361,050 (17,124) (43,296) 932,470 587,124 735,608 102,650 1,634,325 4,112,349 22.3 22.2 22.5 22.1 Note The Refinancing Scheme for Renewable Energy. panels under State Bank of Pakistan’s installation of solar Rs. 23.66 amounted to Rs. 149 million out of which for twelve years ending in 2032 and total facility is available at the rate of 3.65% per annum. as at year end. The loan carries mark-up million were utilized BORROWING LONG TERM cost as per the Company's negotiated rates. 21. DEFERRED TAXATION balance arising in respect of: Credit - accelerated tax depreciation allowance - amortization of right-of-use of asset - amortization of intangible assets arising in respect of: Debit balance - provision for stock in trade - allowance for impairment of trade debts - provision for restructuring - provision for staff retirement benefits - amortization of lease liability - other provisions 22. AND OTHER PAYABLES TRADE Creditors Bills payable Forward foreign exchange contract Accrued liabilities Royalty and technology fee Contract liabilities Withholding tax Workers' Welfare Fund Payable to Employee Retirement Benefit funds Others Liability for share-based compensation

22.1 letters of credit under vendor financing arrangements which includes interest Bills payable represents inland 20. bank for arrangement with a commercial Company entered into long term borrowing During the year the

Unilever Pakistan Foods Limited - Annual Report 2020 63 Unilever Pakistan Foods Limited - Annual Report 2020 64 479 472 252 (87) (172) 67,860 49,508 £ 43.50 € 51.23 72,894 (54,542) 122,402 - 277 472 612 (137) (Numbers of shares) (Rupees in thousand) 2020 2019 79,185 2020 2019 97,538 67,860 147,045 (49,507) € 49.76 £ 43.92

PLC shares. After a holding period of 3 years, the company will award 1 free share, for every 3 shares bought. the company will award 1 free share, for every 3 shares bought. PLC shares. After a holding period of 3 years, ended on these dates is presented below:

margin improvement. improvement. margin Company’s eligible managers to invest up to 100% of their annual bonus in shares in Unilever NV and Unilever and NV Unilever shares in in bonus their annual of 100% to up invest managers to eligible Company’s of performance-related shares. The awards of the plans will vest after PLC and to receive a corresponding award of performance conditions. four years depending on the satisfaction Share price Unilever PLC Netherlands Unilever PLC United Kingdom Outstanding at January 1 The Company has treated these share-based plans as cash settled in view of obligation of the Company. The Company has treated these share-based plans as cash settled in view of obligation to invest in Unilever In addition to above, 'buy 3 get 1 free share' plan gives eligible employees an opportunity during the years 2020 and 2019 and changes December 31, at as Plans A summary of the status of the Share 22.2 Workers' Welfare Fund 1 Balance as at January Charge for the year year Payment during the 31 Balance as at December cash flow and underlying operating The performance conditions of MCIP are underlying sales growth, operating 22.3 Share based compensation plans had share-based compensation plans in the form of performance shares. As at December 31, 2020 Company under the Management Co-Investment Plan (MCIP). The MCIP allows Performance share awards are made Awarded Vested Forfeited Outstanding at December 31

4,525 10,744 40,684 51,428 12,852 15,823 42,884 37,803 33,278 37,803 51,428 15,823 26,202 (39,913) 105,054 1,163,888 1,829 1,829 (Rupees in thousand) (Rupees in thousand) (Rupees in thousand) 1,829 5,588 2020 2019 2020 2019 2020 2019 15,823 37,803 62,520 43,391 43,391 10,891 11,092 62,520 51,428 (15,823) 107,740 1,043,631 23.1 23.2 23.3 Note Balance as at January 1 23.2.1 This represents reversals amounting to Rs. 12.8 million and payment of Rs. 3 million. 22.5 has been recognized as revenue million as of the beginning of the year liabilities amounting to Rs 56.39 Contract ended 31 December 2020. for the year 22.4 in trade and other payables are as follows: due to related parties included Amounts Restructuring Sindh Infrastructure Cess Stamp Duty 23. PROVISIONS Balance as at January 1 Charge for the year Balance as at December 31 23.3 Stamp Duty Balance as at January 1 Charge for the year Balance as at December 31 23.1 Infrastructure Cess Sindh Provision during the year year Payments / reversals during the Balance as at December 31

23.2 Restructuring Holding company Other related parties

Unilever Pakistan Foods Limited - Annual Report 2020 65 Unilever Pakistan Foods Limited - Annual Report 2020 66 2,194,254 (2,452,779) (2,630,308) 15,921,732 18,374,511 13,291,424 11,097,170 13,291,424 (Rupees in thousand) 2020 2019 15,572,747 1,681,653 21,357,698 18,462,629 (2,895,069) (2,889,882) 15,572,747 13,891,094

The Company analyses its net revenue by the following product groups: Running finance under mark-up arrangements Running finance under

KIBOR - 0.3% to 3-month KIBOR + 0.5% per annum). KIBOR - 0.3% to 3-month Rs. 4.946 billion). Rs. 5.061 billion (2019: that remained unutilized at year end was Rs. 4.485 billion (2019: (2019: Rs. 5.375 billion) of which the amount Rs. 3.948 billion). 26.2 approximates 14.31% (2019: 13.23%) of the total revenue of the Company. Revenue from one customer Products used by entities Products used by end consumers 26.1 25.1 Commitments for capital expenditure as at December 31, 2020 amounted to Rs. 295.51 Aggregate commitments outstanding million (2019: Rs. 653.1 million). at December 31, 2020. There were no contingencies as amounting to hypothecation over the Company's current assets are secured by way of The arrangements as at December 31, 2020 amounted to Rs. 5.925 billion The facilities for opening letters of credit and guarantees 25. AND COMMITMENTS CONTINGENCY Rs. 3.575 billion). banks amount to Rs. 3.636 billion (2019: finance available from various The facilities for running 1-month to 3-month KIBOR + 0.5% per annum (2019: between 1-month KIBOR - 0.3% The rates of mark-up range

24. SHORT TERM BORROWINGS Returns, rebates and allowances 26. SALES Gross sales Sales tax 958 7,951 4,474 2,189 1,764 7,253 21,731 37,862 36,810 10,071 36,744 47,204 12,993 14,204 25,021 46,652 58,898 161,047 573,626 873,163 306,359 268,052 (25,022) (14,581) 371,747 177,503 557,376 207,497 116,387 192,625 2,294,222 (321,422) 7,561,173 7,561,174 7,789,001 6,266,087 446 (Rupees in thousand) 7,951 5,676 1,376 9,553 5,128 2,086 1,080 (Rupees in thousand) 2020 2019 2020 2019 24,587 12,173 10,927 11,851 48,190 25,022 69,252 52,098 48,410 85,456 106,274 794,460 574,341 310,029 671,920 388,366 197,958 275,280 321,422 256,831 129,828 (31,071) (374,996) 2,274,181 7,126,455 8,696,970 8,894,178 8,690,921 27.2 27.2 27.2 27.1 28.1 28.3 Note 28.2 Note materials consumed Raw and packing paid to third party Manufacturing charges consumed Stores and spares Utilities Staff costs Depreciation (Reversal against) / provision for impairment of fixed assets Repairs and maintenance Rent, rates and taxes Insurance Travelling and entertainment Stationery and office expenses Other expenses Technology charges Charges by related party Opening work in process Closing work in process Cost of goods manufactured Opening stock of finished goods Purchase of finished goods Closing stock of finished goods 27. COST OF SALES 27.1 from its charged to the Company for certain management and other services received This represents amount 27.2 undertaking - Unilever Pakistan Limited. associated for rights-of-use assets. This includes amount of depreciation 28. DISTRIBUTION COST Staff costs Advertisement and sales promotion Outward freight and handling Royalty, technology fee and related duties Travelling and entertainment Depreciation Rent, rates and taxes Repairs and maintenance Stationery and office expenses Technology charges Other expenses Charges by related party

Unilever Pakistan Foods Limited - Annual Report 2020 67 Unilever Pakistan Foods Limited - Annual Report 2020 68 - 765 300 145 1,000 2,210 1,376 1,065 2,210 20,057 13,278 19,445 14,098 49,508 320,067 391,596 178,067 128,559 350 300 635 185 (Rupees in thousand) 9,007 2,120 2,838 1,000 2,120 (Rupees in thousand) 2020 2019 35,120 11,441 25,432 2020 2019 79,185 14,850 364,120 450,428 191,871 285,906 15.1 22.2 30.1 Note 29.1 29.2 Note Depreciation This represents amount charged to the Company for certain management and other services received from its management and other services received charged to the Company for certain This represents amount associated undertaking - Unilever Pakistan Limited. 30. OTHER OPERATING EXPENSES Donations Fund Workers' Profits Participation Workers' Welfare Fund 29.1 Auditors' remuneration Certifications Annual audit fee Half yearly review Out of pocket expenses 29.2 its This represents amount charged to the Company for certain management and other services received from Travelling and entertainment Auditors' remuneration Allowance for impairment of trade debts Legal and professional charges Other expenses Technology charges Charges by related party 29. ADMINISTRATIVE EXPENSES 28.2 28.3 for rights-of-use assets. This includes amount of depreciation - Unilever Pakistan Limited. associated undertaking 28.1 (Associated Company). and Unilever Plc Inc. (Holding Company) to Conopco includes amount payable This

------4,429 3,762 17,004 46,720 56,903 12,517 79,944 45,910 117,010 304,339 146,023 354,862 (16,194) 135,076 118,130 208,839

- - (Rupees in thousand) (Rupees in thousand) 1,374 8,980 2020 2019 71,108 2020 2019 71,108 99,015 58,220 78,725 12,196 22,550 (9,850) 200,078 409,454 (18,967) 217,546 148,671 1,697,796 4,835,704 1,445,978 4,131,366 12,110,844

31.1 31.2 Mark-up on short term borrowing Current year: Others includes a liability written back in lieu of technology fee due to Unilever PLC for prior years as the State bank of Others includes a liability written back in This includes amount charged by the Company for certain management and other services rendered to its associated other services rendered and certain management for the Company charged by amount This includes 30.1 and trusts Donations to following organisations Rs. 1,000,000: exceeds Corona Imdad Fund Akhuwat PM Fund Khanum Memorial Trust Shaukat Hospital The Indus approval was granted at 2% instead of 3% as per the previous agreements that were in place. Pakistan's 32. FINANCE COSTS Mark-up on Leases Bank charges 31.2 companies. the two between Agreement Service Sharing the Cost with in accordance Pakistan Limited, Unilever - undertaking 31.1 - Current tax 33. TAXATION - charge - Deferred tax - Prior year tax Service fee Exchange gain - net Others Income from non-financial assets Scrap sales Loss on disposal of property, plant and equipment Reversal of provision for impairment of fixed assets Others 31. OTHER INCOME Income from financial assets Return on savings accounts

Unilever Pakistan Foods Limited - Annual Report 2020 69 Unilever Pakistan Foods Limited - Annual Report 2020 70

- - 1,920 26,797 6,370 385.08 (12,128) 354,862 (475,989) 814,262 2,807,800 2,452,938

- (Rupees) 3,406 19,113 6,370 (9,850) (Rupees in thousand) (Rupees in thousand) 217,546 602.42 (23,204) 2020 2019 2020 2019 (Number in thousand) (948,183) 1,176,264 4,054,958 3,837,412

Basic earnings per share per share of the Company. There is no dilutive effect on the basic earnings

35. RELATED PARTY DISCLOSURES parties comprise of the holding company, its group companies, directors and their close family The related personnel and retirement benefit funds. members, associated undertakings, key management with various related parties. Details of The Company in the normal course of business carries out transactions follows: as elsewhere are specifically disclosed have been which than those parties, other with related transactions profit before tax Accounting 33.1 profit: between tax expense and accounting Reconciliation tax rate of 29% (2019: 29%) Tax at the applicable credits Tax effect of final tax Tax effect of change in tax rate Tax effect of Write down of deferred tax asset Others Tax effect of prior years Tax expense for the year in issue Weighted average number of shares during the year shareholders Profit after taxation attributable to ordinary 34. BASIC AND DILUTED EARNINGS PER SHARE

2,675 21,515 79,944 33,909 18,115 (7,170) 571,452 837,717 1,824,649

(Rupees in thousand) 2,799 5,948 2020 2019 59,418 15,883 79,932 16,824 375,652 949,059 1,749,734 N/A 4.26% Shareholding Aggregate % of Royalty fee Royalty and technology Property, Plant & Purchase of goods & Equipment Sale of goods from Fee for receiving of services related parties Fee for providing of services to related parties Contribution (from)/ to: - Defined contribution plans Settlement on behalf of: - Defined contribution plans Salaries and other short-term employee benefits Nature of transactions Basis of association Associated Company due to common directorship Associated Company due to common directorship Unilever Pakistan Limited Rafhan Maize Products Co. Limited Name of the Related Party Relationship with the Company The following are the related parties with whom the Company had entered into transaction or have arrangement The following are the related parties with 35.2 / agreement in place iii) funds Staff retirement personnel iv) Key management i) Holding company ii) companies Associated 35.1

Unilever Pakistan Foods Limited - Annual Report 2020 71 Unilever Pakistan Foods Limited - Annual Report 2020 72 N/A N/A N/A N/A N/A N/A N/A 76.55% shareholding Aggregate % of Basis of Holding Company Company Company Company Company Company Company Company Associated Associated Associated Associated Associated Associated Associated Association Address Registered 20 Pasir Panjang Rd, 20 Pasir Panjang Rd, #06-22 Mapletree Business City, Singapore 117439 105-109, Tongi Industrial Area, Gazipur 258 M. Vincent Perera Mawatha, Colombo 01400, Sri Lanka Weena 455, 3013 Rotterdam Netherlands 800 Sylvan Avenue Englewood Cliffs, NJ 07632, United States Unilever House, 100 Victoria Embankment, London Level 33-35, Menara Telekom, Jalan Pantai Baru, Kuala Lumpur, Malaysia PO BOX 544, 2400 AM Alphen aan den Rijn, The Netherlands of Incorporation Name and country Unilever PLC Unilever Malaysia Holdings Sdn BHD Unilever Plc Conopco Inc. Unilever Europe BV Unilever Bangladesh Limited (Bangladesh) Unilever Lipton Ceylon Limited (Sri Lanka) Unilever Asia Private Unilever Asia Private Limited (Singapore) Transactions with related parties are carried out on commercial terms. 35.3 had entered whom the Company outside Pakistan, with incorporated parties, including those Details of related in place are as below: or have arrangement / agreement into transactions 37 676 2019 2,658 3,589 1,292 1,662 3,925 2,839 29,211 22,288 95,234 13,164 2018 118,116 relating to Paid in 2019 23 950 2020 Executives 9,205 1,511 2,121 2,038 66,328 82,153 - 1,376 8,267 3,089 12,732 2019 (Rupees in thousand) 1 - - - - - relating to Paid in 2020 2019 6,305 6,305 1 3 - - - 30 2020 5,007 5,040 Chief Executive (Rupees in thousand) 2 - - - - - 2019 5,563 5,563 2 - - 37 35 805 2020 7,319 6,442 Executive Directors Note 36.1 Rs. 17.38 million (2019: Rs. 23.93 million) on account of variable pay has been In addition to this, a lump sum amount of the current year payable in 2021 after verification of target achievement. accounted for in financial statements for and 2018 following payments were made: Out of the variable pay recognized for 2019 in these financial statements for the year for fee to seven non-executive directors was Aggregate amount charged Rs. 4.1 million (2019: seven non-executive directors Rs. 3.6 million). Certain executives of the Company are also provided with the Company maintained cars. In respect of full time working Directors, Chief Executive Officer and Company Secretary, the Company is charged monthly by an associated undertaking (Unilever Pakistan Limited) on agreed basis. benefits remuneration including all year for The aggregate amounts charged in the financial statements of the and executives of the Company are as follows: to directors, chief executive and trade and 31, 2020 are included in other receivables outstanding balances as at December The related party 36. in ordinary course of business. respectively. These are settled other payables DIRECTORS, CHIEF EXECUTIVE AND EXECUTIVES REMUNERATION OF various share to Limited Pakistan Unilever associate, its with agreement into entered has Company The 31. from the associate has been disclosed in note and other resources. Service fee administrative by the State Bank of with the agreements duly acknowledged and technology fee are paid in accordance Royalty and sale of Pakistan. The purchase and services from related parties are made goods terms and on agreed the by approval of process the in are agreements fee technology year current the in However, conditions. Pakistan. State Bank of to PKR 2.632 billion (2019: Rs. 1.556 billion). to the Holding Company amounts Dividend paid Executive Directors Executives Chief Executive Other employees Managerial remuneration and allowances Retirement benefits Other long term benefits Medical expenses Other expenses Share based compensation Number of persons

Unilever Pakistan Foods Limited - Annual Report 2020 73 Unilever Pakistan Foods Limited - Annual Report 2020 74

Total 1,374 23,660 251 261 233 228 17,590 (7,775) 18,964 (37,450) 40,195 973,625 1,422,296 (3,390,721) 3,841,993 (3,404,511)

- - - - - 249 250 228 228 2020 2019 2020 2019 40,121 (7,775) 943,233 profit 1,386,730 (3,390,721) 3,841,993 (3,390,721) Unappropriated (Rupees in thousand) ------

23,660 23,660 23,660 Long term Borrowings - - - - 1,374 17,590 30,392 Lease 11,906 (37,450) (37,450) 18,964 liabilities

Balance as at 1 January 2020 Changes from financing cash flows Repayment of lease liabilities Financing obtained during the year Dividends paid Total changes from financing activities Other changes Interest expense Increase in lease liabilities Total changes Total comprehensive income for the year Dividend not paid during the year Balance as at December 31, 2020 Actual production of the plant in metric tons Actual production of The capacity of the plant is indeterminable as it is a multiproduct plant capable of producing several plant capable of producing plant is indeterminable as it is a multiproduct The capacity of the 39. OF EMPLOYEES NUMBER Total number of employees at year end as at the reporting date Total number of Factory employees during the year Average number of Factory employees during the year Average number of employees 40.2 Reconciliation of movements of financial liabilities to cash flows arising from financing activities 40.2 Reconciliation of movements of 40. RISK MANAGEMENT OBJECTIVES AND POLICIES FINANCIAL 40.1 Financial risk factors interest and currency risk market risk (including risks: financial of it to variety activities expose The Company's risk. The Company's overall risk management programme focuses on having rate risk), credit risk and liquidity risk to minimize earnings volatility and provide maximum cost effective funding as well as manage financial return to shareholders. 37. PLANT CAPACITY AND PRODUCTION the provision of Section 218 of the All investments out of provident fund have been made in accordance with Companies Act, 2017 and the rules formulated for this purpose. 38. interchangeable products. DISCLOSURE PROVIDENT FUND RELATED 37.1 36.1 retirement benefit plans. amount contributed towards various Retirement benefits represent

- 341 620 2,980 Total Total 6,147 23,660 57,506 48,736 25,447 11,906 31,180 455,214 929,895

1,637,538 3,891,090 1,500,478 1,427,450 4,264,107 1,439,880 3,984,244 (2,483,766)

(2,626,569)

- - - 341 620 2,980 6,147 25,447 31,180 57,506 48,736 455,214 268,520 839,103 Sub-total Sub-total 3,303,966 3,630,393 1,313,354 3,361,554 (2,522,451)

(2,317,039)

------

year year 3,371 2,980 6,351 6,351 Maturity Maturity after one after one 8,137 8,137

- - - - 620 341 2,776 57,506 48,736 25,447 year year 31,180 Non-interest / Non mark-up bearing Non-interest / Non mark-up bearing 455,214 268,520 to one to one 832,752 Maturity up Maturity up 1,305,217 3,303,966 3,630,393 (2,528,802) (2,325,176) 3,361,554 (Rupees in thousand) (Rupees in thousand)

------23,660 38,685 11,906 Sub-total Sub-total 587,124 661,375 324,184 661,375 633,714 622,690 (309,530)

- - -

------year year - 387 Maturity Maturity after one after one 23,660 24,047 (24,047)

------Interest / Mark-up bearing Interest / Mark-up bearing year year to one to one 11,519 62,732 633,714 661,375 598,643 Maturity up Maturity up 661,375 587,124 324,184 (309,530)

Loans and advances Loans and advances Trade debts Long term deposits Trade deposits Other receivables Cash and bank balances Amortized Cost December 31, 2020 December 31, 2019

FINANCIAL ASSETS FINANCIAL LIABILITIES Derivative financial liability- measured at fair value Forward foreign exchange contract Other financial liabilities- not measured at fair value Long term borrowings and other payables Trade dividend Unpaid dividend Unclaimed term borrowings Short interest / mark up Accrued liability Lease December 31, 2020 December 31, 2019 ON BALANCE SHEET GAP FINANCIAL POSITION GAP December 31, 2020 December 31, 2019 NON FINANCIAL POSITION ITEMS Letters of credit / guarantee: December 31, 2020 December 31, 2019 40.3 maturities and liabilities by category and their respective Financial assets

Unilever Pakistan Foods Limited - Annual Report 2020 75 Unilever Pakistan Foods Limited - Annual Report 2020 76 0.1% - 5% 0.1% - 5% Expected Expected 30% - 75% 30% - 75% 75%-100% 75%-100% 0.1% - 15% 0.1% - 15% 0.1% - 0.5% 0.1% - 0.5% credit loss rate credit loss rate

------3,893 58,577 39,871 18,706 44,701 40,808 allowance allowance Specific loss Specific loss 2020 2019

- - - - 37 230 534 473 206 128 1,379 2,041 Expected Expected credit loss credit loss (Rupees in thousand) (Rupees in thousand)

37,274 amount amount 39,871 18,706 11,342 19,602 19,651 45,395 407,071 514,264 583,937 246,439 915,024 Gross carrying Gross carrying receivables as at reporting date. corresponding historical credit losses experienced within this period. corresponding historical credit losses experienced loss rates are based on the payment profiles of sales over a period of 36 months before 1 January 2020 and the loss rates are based on the payment profiles receivables have been grouped based on shared credit risk characteristics and the days past due. The expected receivables have been grouped based on a lifetime expected loss allowance for all trade receivables, to measure the expected credit losses, trade a lifetime expected loss allowance for of trade debts relates to a number of independent customers for whom there is no recent history of default. of trade debts relates to a number of independent 31, 2020 trade debts of Rs.3.6 million (2019: Rs. 26.51 million) were past due but not impaired. The carrying amount 31, 2020 trade debts of Rs.3.6 million (2019: internal or external credit worthiness ratings in accordance with limits set by the management. As of December December As of management. by the set limits accordance with ratings in worthiness credit external or internal account their financial positions, past experiences and other factors. Individual risk limits are set based on account their financial positions, past which are subject to credit risk amounted to Rs. 461.36 million (2019: Rs. 877.6 million). credit risk amounted to Rs. 461.36 million which are subject to financial assets. Out of total financial assets of Rs. 1,498 million (2019: Rs. 1,637.2 million), the financial assets (2019: Rs. 1,637.2 million), the financial of total financial assets of Rs. 1,498 million financial assets. Out completely to perform as contracted. The maximum exposure to credit risk is equal to the carrying amount of to credit risk is equal to the carrying as contracted. The maximum exposure completely to perform Not yet due Less than 3 months More than 3 months to not later than 6 months More than 6 months to not later than 12 months More than one year Not yet due Less than 3 months More than 3 months to not later than 6 months More than 6 months to not later than 12 months More than one year

hierarchy as defined in IFRS 13. 13. IFRS in defined as hierarchy to level 2 fair value measurement and has been classified in rate has been taken from financial institution about the exposure to credit risk and Expected Credit Loss for trade The following table provides information approach for measuring expected credit losses which uses For trade debts, the Company applies IFRS 9 simplified into taking risk assessment process determines the credit quality of the customers, For trade debts, internal parties failed be recognized at the reporting date if counter the accounting loss that would Credit risk represents (i) risk Credit the relevant contract : refer note 21) at reporting date, (forward foreign exchange For valuation of derivative approximate their fair value. assets and financial liabilities The carrying value of financial

damage to the Company’s reputation. reputation. Company’s the to as far as possible, that it will always have sufficient liquidity to meet approach to managing liquidity risk is to ensure, and stressed conditions, without incurring unacceptable losses or risking its liabilities when due, under both normal damage objective of market risk management is to manage and control market risk of its holding in financial instruments. The while optimizing returns. exposures within acceptable parameters, Rs. 107.03 million) and financial liabilities of Rs.150.30 million (2019: Rs. 2020, financial assets of Rs.17.75 million (2019: were exposed to foreign currency risk. 175.39 million) were in foreign currency which 6.63% in CNY, 4.68% in EURO & 0.35% in JPY. for the year would have been lower / higher by Rs. 0.35 million (2019: Rs. 1.02 variables held constant, profit before tax denominated financial liabilities. million), mainly as a result of foreign exchange losses / gains on translation of Euro by Rs. 5.07 million (2019: Rs. 1.26 variables held constant, profit before tax for the year would have been higher / lower US Dollar denominated financial million), mainly as a result of foreign exchange losses / gains on translation of liabilities. by Rs. 0.03 million (2019: Rs. Nil), lower / higher have been year would tax for the variables held constant, profit before financial liabilities. mainly as a result of foreign exchange losses / gains on translation of Japanese Yen denominated 2.88 0.50 million (2019: Rs. by Rs. lower / higher have been for the year would tax before profit variables held constant, denominated financial liabilities. million), mainly as a result of foreign exchange losses / gains on translation of CNY liabilities. lower / higher by Rs. 0.68 million all other variables held constant, profit before tax for the year would have been a result of foreign exchange losses / gains on translation of GBP denominated as (2019: Rs. 0.77 million), mainly financial at the reporting date and assumes this is the position for a full twelve-month period. credit risk. agencies. risk. rating credit credit to no significant credit risk. risk. credit significant no to (iii) Market risk or value effect the Company's income interest rates will rate, foreign exchange in changes that is the risk Market risk a) Foreign exchange risk liabilities are approx. 79.25% in USD, 9.09% in GBP, All foreign currency financial assets are in USD. Foreign currency other all with Euro against 5% by strengthened / weakened had Rupee Pakistan the if 2020, 31, December at As all other As at December 31, 2020, if the Pakistan Rupee had weakened / strengthened by 5% against US Dollar with Japanese Yen with all other As at December 31, 2020, if the Pakistan Rupee had weakened / strengthened by 5% against had weakened / strengthened by 5% against CNY with all other As at December 31, 2020, if the Pakistan Rupee As at December 31, 2020, if the Pakistan Rupee had weakened / strengthened by 5% against Great Britain Pound with The sensitivity of foreign exchange rate looks at the outstanding foreign exchange balances of the Company only as Company will not be able to meet its financial obligations as they fall due. The Company’s Liquidity risk is the risk the exist in foreign currency. As at December 31, Foreign exchange risk arises mainly where receivables and payables (ii) Liquidity risk to any significant related parties, therefore, are not exposed mainly receivables from the Other receivables constitute good credit ratings assigned by as they are placed with banks having The bank balances represent low credit risk counterparties. management does not expect any losses from non-performance by these The believes that it is not exposed to significant credit risk. Management credit risk. to employees are not exposed to any material Loans and advances exposed letters of credit, hence guarantees and company, shipping utility have been placed mainly against Deposits

Unilever Pakistan Foods Limited - Annual Report 2020 77 Unilever Pakistan Foods Limited - Annual Report 2020 78

- 341 0.00% 58,219 (74,746) 16,868 (35,217) 689,339 (724,556) 724,556 (724,556) 1,892,563 1,892,563

- (Rupees in Thousand) (Rupees in 0.86% 23,660 929,895 929,895 (Rupees in thousand) (Rupees in thousand) 2020 2019 2020 2019 (906,235) (929,895) 2,747,694 2,747,694

16 24 Note

Opening balance as at January 1, 2020 Opening balance as going concern in order to provide returns for shareholders and benefit for other stakeholders and to maintain going concern in order to provide returns cost of capital. an optimal capital structure to reduce the 324.18 million) and financial liabilities of Rs. 622.69 million (2019: Rs 324.18 million) and financial liabilities of 633.71 million), and had the interest rate variables held constant, profit before tax for the year would have varied by 200 basis points with all the other 6.19 million) lower / higher, mainly as a result of higher / lower been approximately Rs. 0.77 million (2019: cash flows of a financial instrument. Borrowings obtained at variable rates expose the Company to cash flow at variable rates expose the Company instrument. Borrowings obtained cash flows of a financial interest expense on floating rate borrowings. borrowings. rate floating on expense interest interest rate risk. risk. rate interest Derivative financial liability - at fair value through - at fair value financial liability Derivative profit or loss Interest rate risk arises due to changes in market interest rates that results in fluctuation in fair value or future that results in fluctuation in fair value due to changes in market interest rates Interest rate risk arises The Company finances its operations through equity, borrowings and management of working capital with a The Company finances its operations through equity, borrowings and management Long - term debt year Cumulative net loss during the Net realized loss during the year 31,2020 Net unrealized Loss as at December

42. CASH AND CASH EQUIVALENTS Cash and bank balances Short term borrowings - running finance under mark up arrangements

The gearing ratios as at December 31, 2020 and 2019 were as follows: 41. CAPITAL RISK MANAGEMENT the Company's ability to continue as a The Company's objectives when managing capital are to safeguard Company had variable interest bearing financial assets of Rs. 661.4 million (2019: Rs. At December 31, 2020, the b) Interest rate risk view to maintaining an appropriate mix between various sources of finance. finance. of sources various between mix appropriate an maintaining to view

Gearing ratio Cash and bank Net (cash surplus) / debt Total equity Total capital Aly Yusuf Director and Chief Financial Officer

Director Farheen Salman Amir R. Paracha This is in per share amounting to Rs. 905 million). of 2020 is proposed (2019: Rs. 142 Rs. 1,343 million in respect (2019: Rs. per share amounting to Rs. 2,494 million interim cash dividend of Rs. 391.52 addition to the cumulative the year. to Rs. 1,554 million) declared during 244 per share amounting and better presentation. Chief Executive Officer 44. CORRESPONDING FIGURES 45. AUTHORISATION DATE OF to of Rs. 210.89 per share amounting meeting held on March 01, 2021 , a final dividend At the Board of Directors' wherever necessary for purpose of comparison Corresponding figures have been re-arranged and reclassified, Company. for issue on March 01, 2021 by the Board of Directors of the These financial statements were authorized 43. DIVIDENDS PROPOSED AND DECLARED

Unilever Pakistan Foods Limited - Annual Report 2020 79 Unilever Pakistan Foods Limited - Annual Report 2020 80 Aman Ghanchi Company Secretary By Order of the Board A Member may appoint a proxy who a may appoint A Member Annual General Meeting of Unilever Pakistan Foods Limited will be held virtually Limited will be Pakistan Foods Meeting of Unilever Annual General rd To approve and declare dividend (2020) on the Ordinary Shares of the Company. dividend (2020) on the Ordinary Shares To approve and declare All Members / Shareholders are entitled to attend and vote at the meeting. The members are required to All Members / Shareholders are entitled to attend and vote Karachi March 16, 2021 Together with the First Interim Dividend of 1300% (or Rs. 130.00) per ordinary share, Second Interim Dividend of per ordinary share, Second Interim Interim Dividend of 1300% (or Rs. 130.00) Together with the First share, of 1205.2% (or Rs. 120.52) per ordinary per ordinary share and Third Interim Dividend 1410% (or Rs. 141.00) (or Rs. 602.41) per ordinary share. dividend for will thus amount to 6024.1% already paid, the total re-appointment. together with the Reports of the Auditors and Directors thereon. together with the Reports email their Name, Folio Number, Valid Email address and Number of Shares held in their name at email their Name, Folio Number, Valid Email address and Number of WhatsApp Number 0321-8200864. [email protected] or shares will be accepted for registration. Transfers in good order, received at the office of Company’s Share shares will be accepted for registration. 99-B, Block “B”, Limited, CDC House, Share Registrar Services M/s Central Depository Company Registrar by the close of the Business on April 05, 2021 will be treated in S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 of entitlement the ascertaining for and transferees the to Dividend Final of payment of purpose the for time Shareholders for attending the Annual General Meeting. need not be a Member of the Company. Office (1st Floor, Avari copy thereof, must be lodged with the Company Secretary at the Company’s Registered Plaza, Fatima Jinnah Road, Karachi) at least 48 hours before the time of the meeting. and Exchange Commission of Pakistan: Notice of Annual General Meeting General Annual of Notice through Zoom on Monday, April 12, 2021, at 11:00 a.m. to transact the following business: a.m. to transact the 12, 2021, at 11:00 on Monday, April through Zoom 3. and to fix their remuneration. To appoint Auditors for the ensuing year, eligible have offered themselves for Messrs KPMG Taseer Hadi & Co., Chartered Accountants, retire and being Shares. (or Rs. 210.89 per share) on the Ordinary a final cash dividend of 2108.9% The Directors have recommended 2. 1. 2020, Statements for the year ended 31 December adopt the Company’s Financial To receive, consider and Ordinary Business Notice is hereby given that the 23 given that the Notice is hereby 2. 3. proxy, and the other authority under which it is signed, or a notarially certified Duly completed instrument of 4. as laid down by the Securities CDC Account Holders will further have to follow the under-mentioned guidelines Notes: 1. of transfer when no days inclusive) April 12, 2021 (both 2021 to April 06, will be closed from Books Transfer Share required particulars, are received at the given email address 48 hours before the meeting. The shareholders required particulars, are received at the questions for the agenda items of the AGM on Whatsapp Number can also provide their comments and 0321-8200864 and email: [email protected]. For Attending the Meeting: For Attending For Appointing Proxies: shareholders whose names are not entered into the Active Tax-payers List (ATL) provided on the website of FBR, shareholders whose names are not entered into the Active Tax-payers List (ATL) are entered into ATL before the despite the fact that they are filers, are advised to make sure that their names paid on April 26, 2021 otherwise start of book closure date i.e. April 06, 2021 for entitlement to final dividend to be tax on their cash dividend will be deducted @ 30% instead of 15%. Income Tax Ordinance 2001 whereby different rates are prescribed for deduction of withholding tax on the Income Tax Ordinance 2001 whereby different rates are prescribed for deduction Act -2020 are as under: amount of dividend paid by the Companies. Now these rates as per the Finance proxy, and the other authority under which it is signed, or a notarially certified copy thereof are received proxy, and the other authority under which it is signed, or a notarially 48 hours before the meeting. be with above mentioned details shall (unless it has been provided earlier) along nominee shall be produced form the proxy shall submit Regulations, the per as details are uploaded registration their and group account for receiving the Login credentials. along with valid email address be mentioned on the form. proxy form. corporate entity, the of behalf on vote represent and to nominated the person of CNIC Valid of copy attested shall be submitted along with proxy form to the Company. Number 0321-8200864. or WhatsApp in their name at [email protected]

To enable the Company to make tax deduction on the amount of cash dividend @ 15% instead of 30% all the (a) For Filers of Income Tax Return 15% 30% (b) For Non-Filers of Income Tax Return 9. Pakistan through Finance Act, 2014 has made certain amendments in Section 150 of the (i) The Government of 8. In accordance with the directives of the SECP, the dividends of shareholders whose CNIC copies have not been credited until receipt thereof. Therefore, the individual received by the Company shall not be electronically are requested to send the same at the earliest to the shareholders who have not submitted their CNIC copies share registrar of the Company. Corporate entities are requested to provide their NTN. While providing their CNIC/NTN, shareholders must quote their respective folio numbers. 7. of our shareholders, reports, Covid-19 is once again surging in Pakistan. Considering the safety As per the current March 03, situation of the pandemic and keeping in view the SECP Circular No. 6 of 2021 dated unpredictable approach for the respected shareholders, it has been decided that the AGM 2021 and to adopt a cautious for which all necessary facilitation will be provided. will be held through electronic means only 6. will be shared with only those proxies whose duly completed instrument of Video-Link and Login credentials on the email address or Whatsapp number. submitted B. i. in securities are whose person the and/or holder sub-account or holder account the individuals, of In case ii. and CNIC numbers shall The proxy form shall be witnessed by two persons whose names, addresses iii. the with furnished be shall and the proxy the beneficial owners of the passport or CNIC valid of Attested copies iv. and entity, the Board of Directors’ resolution / power of attorney with specimen signature In case of corporate 5. all the and Login credentials will be shared with only those Members whose emails, containing Video-Link ii. of the of attorney with specimen signature entity, the Board of Directors’ resolution/power In case of corporate A. i. held Number of Shares Email address and Number, Valid to email their Name, Folio are required The members

Unilever Pakistan Foods Limited - Annual Report 2020 81 Unilever Pakistan Foods Limited - Annual Report 2020 82 M/s Central M/s Central Proportion Shareholding (No. of Shares) Joint Shareholder CNIC# Name and Proportion Shareholding (No. of Shares) Principal Shareholder CNIC# Name and Total Shares Follo/CDS Account# dividend to its shareholders only through electronic mode directly into bank account designated by the entitled dividend to its shareholders only through fill in dividends directly into their bank account, shareholders are requested to shareholders. In order to receive Dividend Mandate Form, Dividend Mandate Shareholders having physical holding should submit the prescribed who hold shares with participants / stock brokers or with The Shareholders the Company’s Share Registrar. to Mandate details to their Central Depository Company may approach to submit the prescribed Dividend Mandate Form to Share Registrar participants / stock broker or to CDC for this option, with a copy of the Dividend on our also uploaded and Report in the Annual available is form The dividend mandate Company. the of Company’s website. conference facility at Lahore, subject to the following conditions. through video conference aggregate 10% or more shareholding residing at Lahore, to participate in the meeting at least 7 days prior to the date of general meeting. - 23275 (Toll Free), number: 0800 , telephone Services Limited Share Registrar Depository Company telephone number: Hussain Ahmed, Company: Mr. and /or the [email protected] e-mail address: e-mail address: [email protected]. +92-21-35681008 of copy a send corporate physical shareholder should whereas participants, respective with their updated Company Share Registrar to the company or it’s Share Registrar M/s Central Depository their NTN certificate Services as the case may be, must quote sending NTN or NTN certificates, Limited. The Shareholders while respective folio numbers. Company name and their Name of Company on ‘Filer/Non-Filer’ status of Principal Shareholder as well as Joint Holder(s) based on their shareholding proportions, in Joint Holder(s) based on their shareholding of Principal Shareholder as well as on ‘Filer/Non-Filer’ status shareholders, are who hold shares with joint / joint account. In this regard, all shareholders case of joint holding of shares held by Shareholder and Joint Holder(s) in respect shareholding proportions of Principal requested to provide Registrar Services Limited, CDC House, them, to Company’s Share Registrar, M/s Central Depository Company Share Karachi-74400, in writing as follows: 99-B, Block “B”, S.M.C.H.S., Main Shahra-e-Faisal, 11. Section 132(2) of the Companies Act, 2017, members can also avail video Pursuant to Section 134(2) and in The video conferencing facility will be provided only if the Company receives consent from members holding 10. it is mandatory for a listed Company to pay cash Under the provisions of Section 242 of the Companies Act, 2017, and Joint –Holder(s). it will be assumed that the shares are equally held by Principal Shareholder Otherwise (iii) (NTN) to have their National Tax Number shareholders having CDC accounts are required The corporate separately (FBR), withholding tax will be determined received from Federal Board of Revenue According to clarification (ii) Manager, The Share Registrar: the contact may investor the query/problem/information, For any Share Registrar Services Limited, CDC House, 99-B, Block “B”, S.M.C.H.S., Main Shahra-e-Faisal, Karachi -74400. S.M.C.H.S., Main Shahra-e-Faisal, Karachi Limited, CDC House, 99-B, Block “B”, Share Registrar Services general meeting along with complete information necessary to enable them to access such facility. them to access such necessary to enable information along with complete general meeting as follows: signed request No. Register Folio as per of ______Ordinary Share(s) holder Limited, of Unilever Pakistan Foods member a (Name of City). opt for video conferencing facility at ______hereby 12. CDC Registrars, M/s Company’s Share to the notified should be immediately Members of of address change Any send a duly facility at Lahore should video conference to participate through who wish In this regard, members being W/o ______S/o, D/o, I/ We, ______Signature of Member of before the date conference facility 5 days of video members regarding venue intimate to the The Company will

Unilever Pakistan Foods Limited - Annual Report 2020 83 Unilever Pakistan Foods Limited - Annual Report 2020 84

Unilever Pakistan Foods Limited - Annual Report 2020 86 Revenue Stamp Signature of Member(s) Sign across Rs. 5/- signature registered with the Company) (Signature should agree with the specimen Shareholder’s Folio No.: and / or CDC Participant I.D. No.: and Sub- Account No.: Shareholder’s CNIC #: Email Address of Proxy: Contact No. of Proxy: Annual General Meeting of the Company to be held on April 12, 2021 and / or / and 2021 12, April on held be to Company the of Meeting General Annual rd Resolution and the copy of valid CNIC of the proxy, with this proxy form before submission. before the time fixed for the Meeting, duly completed in all respects. The Secretary Foods Limited Unilever Pakistan Jinnah Road Avari Plaza, Fatima Karachi-75530, Pakistan. Limited, holding ______ordinary / preference shares hereby appoint preference shares hereby ______ordinary / Limited, holding the proxy; [state relationship (if any) with is my ______who (holding daughter/ wife of ______, regulations] and the son / required by Government by under Folio No. ______) [required / preference shares in the Company ______ordinary for me / us as my / our proxy, to attend and vote if proxy is not the Company’s shareholder] Government; delete 23 the at behalf our / my on and any adjournment thereof. I/ We ______son/ daughter/ wife of ______shareholder of Unilever Pakistan shareholder of Unilever daughter/ wife of ______I/ We ______son/ Note: 1. to: The Member is requested Stamp of Rs. 5/- at the place indicated above. (a) affix Revenue the Revenue Stamp in the same style of signature as is registered with the Company. (b) sign across his/her/their Folio Number. (c) write down Passport / Board Card / Computerised National Identity valid of their photocopy attested an attach (d) 2. at least 48 hours In order to be valid, this Proxy must be received at the Registered Office of the Company 3. Detailed procedure is given in the Notes to the Notice of AGM. Signed this ______day of ______2021. Signed this ______day of ______Witness 1: Signature: Name: CNIC #: 2: Address : Witness Signature: Name: CNIC #: Address : Form of Proxy of Form 12 2021 2021 23

Unilever Pakistan Foods Limited - Annual Report 2020 87 Unilever Pakistan Foods Limited - Annual Report 2020 88 M/s Central Depository Company Share Registrar Services Limited Name of Shareholder (s) Shareholder Name of Bank Account Details of Shareholder for Payment of Cash Dividend (Dividend Mandate Form) Mandate (Dividend Cash Dividend of Payment for Shareholder of Details Account Bank Folio No./CDS Account No. Folio No./CDS Account Company: CNIC #: #: Cell Land Line #: Email: Name of Shareholder: Name of Father’sHusband’s Name: / Address:

Unilever Pakistan Foods Limited - Annual Report 2020 89 Unilever Pakistan Foods Limited - Annual Report 2020 90 2020 6,679 4,078 3,837 4,055 602.42 15,573 2019 5,502 2,943 2,453 2,808 13,291 385.08

Unilever Pakistan Foods Limited - Annual Report 2020 91 Unilever Pakistan Foods Limited - Annual Report 2020 92 34 192 210 226 Vision Zero UPFL Vision Zero 197 993 412 094) 163) 533) 694 706) 581 , 4 304, 841, 837, 747, 904, 828, 898, 767, , , , , ( ( ( ( Total 2 3 3 2 498 993 995 412 094) 163) 533) 706) 581 , 4 240, 841, 837, 683, 904, 828, 898, 767, , , , , ( ( ( ( 2 3 3 2 Sub Total 993 730 094) 163) 412 533) 706) 233 581 , 4 841, 837, 386, 904, 828, 898, 767, 943, , , , ( ( ( ( Un- 3 3 1 Profit appropriated Revenue ------138 138 Reserves General (Rupees in thousand) ------628 628 Special ------499 499 Capital 296, 296, Share , , 1 1 Premium ------699 699 63, 63, Issued, Share Capital paid up capital subscribed and 2019 31,

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e anc l December 31, 2020 @ Rs. 120.52 per share 'December 31, 2020 @ Rs. 141 per share December 31, 2020 @ Rs. 130 per share December 31, 2019 @ Rs. 142 per share December 31, 2020 year ended December 31, 2020 a Balance as at December 31, 2020 Third Interim dividend for the year ending Second Interim dividend for the year ending First Interim dividend for the year ending Final dividend for the year ended Profit for the year ended Other comprehensive income for the B Total comprehensive income for the period

Unilever Pakistan Foods Limited - Annual Report 2020 93 Unilever Pakistan Foods Limited - Annual Report 2020 94 00 Unilever Pakistan Foods Limited-Annual Report 2020

Unilever Pakistan Foods Limited - Annual Report 2020 95

For further information about Unilever, please visit our website www.unilever.pk

Unilever Pakistan Foods Limited Avari Plaza, Fatima Jinnah Road, Karachi-75530, T: +92 21 35660062 F: +92 21 35674968 www.unilever.pk