1. Pakistan Air force – Karachi Institute of Economics and Technology – Fall’2012
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“Contents”
INTRODUCTION: (UNILEVER)...............................................................................................3
Our Vision: ...........................................................................................................................4
Our People:..........................................................................................................................4
Unilever Corporate Purpose:...............................................................................................5
Purpose and Principles: .......................................................................................................5
Common Size Financial Statements: ...................................................................................6
Types of Common Size Financial Statement:...................................................................6
Common Size Income Statement:.......................................................................................6
Common Size Balance Sheet: ..............................................................................................7
Advantages And Disadvantages of Common Size Statement: ............................................7
Disadvantages of Common Size Statement:....................................................................7
Analysis:...............................................................................................................................8
Income Statement:...........................................................................................................8
Net Profit:......................................................................................................................8
The company’s net profit in 2010 as in the comparison of 2009 but slant decrement
in 2011. .........................................................................................................................8
Balance Sheet: .....................................................................................................................8
Assets: ......................................................................................................................................... 8
Liabilities:................................................................................................................................... 10
Equity:........................................................................................................................................ 11
Conclusion:.................................................................................................................................... 12

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INTRODUCTION: (UNILEVER)
“No matter who you are, or where in the world you are, the chances are that our
products are a familiar part of your daily routine. Every day, around the world, people
reach for Unilever products”
Unilever Pakistan (70.4% Unilever
equity) is the largest FMCG Company in
Pakistan, as well as one of the largest
multinationals operating in the
country. Unilever Pakistan began its
operations in 1948, the Company has
been closely connected to the Pakistani
people and its brands have been a
fundamental feature in their daily lives.
In fact, the nature of our business
enables our brands to be the pulse and
heartbeat of the 164 million people in
Pakistan.
Unilever is one of the world’s leading
suppliers of fast-moving consumer
goods. We aim to provide people the
world over with products that are good
for them and good for others.

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Our Vision:
1. We work to create a better
future every day.
2. We help people feel good, look
good and get more out of life
with brands and services that are
good for them and good for
others.
3. We will inspire people to take
small everyday actions that can
add up to a big difference for the
world.
4. We will develop new ways of
doing business that will allow us
to double the size of our
company while reducing our
environmental impact.
Our People:
People are the heart of our business.
We aim to create an environment
in which all employees can fulfil
their potential.
Unilever is one of the world’s
most culturally diverse
companies. Our Board is made up
of six nationalities and the nine
members of the Unilever
Executive come from six different
countries.

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Unilever Corporate Purpose:
Our deep roots in local cultures and markets around the world give us our strong
relationship with consumers and are the foundation for our future growth. We will
bring our wealth of knowledge and international expertise to the service of local
consumers – a truly multi-local multinational.
Our long-term success requires a total commitment to exceptional standards of
performance and productivity, to working together effectively, and to a willingness to
embrace new ideas and learn continuously.
To succeed also requires, we believe, the highest standards of corporate behaviour
towards everyone we work with, the communities we touch, and the environment on
which we have an impact.
This is our road to sustainable, profitable growth, creating long-term value for our
shareholders, our people, and our business partners.
Purpose and Principles:
Our corporate purpose states that to succeed requires "the highest standards of
corporate behavior towards everyone we work with, the communities we touch, and
the environment on which we have an impact."
Always working with integrity
Positive impact
Continuous commitment
Setting out our aspirations
Working with others

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Common Size Financial Statements:
Company’s financial statement, which displays all items as percentages of a common
base figure. This type of financial statement allows for easy analysis between
companies or between time periods of a company.
The values on the common size statement are expressed as percentages of a statement
component such as revenue. While most firms don't report their statements in common
size, it is beneficial to compute if you want to analyze two or more companies of
differing size against each other.
Formatting financial statements in this way reduces the bias that can occur when
analyzing companies of differing sizes. It also allows for the analysis of a company over
various time periods, revealing, for example, what percentage of sales is cost of goods
sold and how that value has changed over time.
Types of Common Size Financial Statement:
(1)Common Size Balance Sheet
(2)Common Size Income Statement:
Common Size Income Statement:
An income statement in which each account is expressed as a percentage of the value
of sales. This type of financial statement can be used to allow for easy analysis between
companies or between time periods of a company.
Common size income statement analysis allows an analyst to determine how the various
components of the income statement affect a company's profit.

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Common Size Balance Sheet:
A company balance sheet that displays all items as percentages of a common base
figure. This type of financial statement can be used to allow for easy analysis between
companies or between time periods of a company.
The image above illustrates the difference between a regular balance sheet and a
common size balance sheet. In the normal balance sheet, account values are
expressedin dollar terms, while in the common size one, each value is listed as a
percentage of total assets. This is also done for liabilities, where each liability account is
a percentage of total liabilities.
Advantages And Disadvantages of Common Size Statement:
Advantages of Common Size statement:
It reveals Sources and Application of Funds in a nutshell which help in taking
decision.
If common size statements of 2 or more years are compared it indicate the
changing proportion of various components of Assets, Liabilities, Cost, Net Sale &
Profit.
When Inter Firm Comparison is made with the help of Common size statement it
helps in doing corporate evaluation and Ranking.
Disadvantages of Common Size Statement:
No Established Standard Proportion:
Common Size Statements are regarded as useless as there is no established standard
proportion of an asset to the total asset or an item of expense to the net sales.

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Consistency Required:
If Financial Statement of a Particular business organization are not prepared year after
year on a consistent basis comparative study of common size statement will be
misleading.
Analysis:
Income Statement:
A financial statement that measures a company's financial performance over a specific
accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating
activities. It also shows the net profit or loss incurred over a specific accounting period,
typically over a fiscal quarter or year. It is also known as the "profit and loss statement"
or "statement of revenue and expense".
Net Profit:
In business, what remains after subtracting all the costs (namely
business, depreciation, interest, and taxes) from a company's revenues? Net income is
sometimes called the bottom line. It is also called earnings or net profit. For an
individual, gross income minus taxes, allowances, and deductions. An individual's
net income is used to determine how much income tax is owed.
The company’s net profit in 2010 as in the comparison of 2009 but slant decrement in
2011.
Balance Sheet:
Assets:
Non - Current Assets: Noncurrent assets are capitalized rather than expensed,
meaning that the company allocates the cost of the asset over the number of years for
which the asset will be in use, instead of allocating the entire cost to the accounting
year in which the asset was purchased.
Current Assets:A balance sheet item which equals the sum of cash and cash
equivalents, accounts receivable, inventory, marketable securities, prepaid expenses,
and other assets that could be converted to cash in less than one year.

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A company's creditors will often be interested in how much that company has in current
assets, since these assets can be easily liquidated in case the company goes bankrupt.
The non-current asset in 2010 was 69.56% as it increases to 69.92% in 2011. The
element in balance sheet which increases and decreasesin the balance sheet of 2011
the company’s intangible assets increases by 2.41% in 2011, deferred tax assets which
decreases by 0.58%, Property, plant and equipment decreases by 0.61%, the company’s
goodwill also decreases in year 2011 by 0.57% and its financial assets also decreases by
in 2011 by 0.23%. Thus above mention all the fundamentals increases in the year 2011
which decreases the current assets of the company. In current assets fundamentals also
fluctuate in year 2011 as inventories decreases by 0.78%, the cash and cash equivalents
increases in 2011 and its other financial assets also increases.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Non- current Assets Current Asset
Assets
years 2010
years 2011

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Liabilities:
Current liabilities:A balance sheet item which equals the sum of all money owed by
a company and due within one year also called payables or current debt.
Non – current liabilities:Debt not due to be paid within the next year.
The non-current liabilities increases in 2011 by 0.53% and the current liabilities are
increases by 4.69% because the company’s current financial debts are increased by
6.76% in 2011.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Non-Current Liablities Current Liabilities
Liabilities
years 2011
years 2010

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Equity:
Equity is the residual claim or interest of the most junior class of investors in assets,
after all liabilities are paid. If liability exceeds assets, negative equity exists. In an
accounting context, Shareholders' equity (or stockholders' equity, shareholders' funds,
shareholders' capital or similar terms) represents the remaining interest in assets of a
company, spread among individual shareholders of common or preferred stock.
The company’s equity decreases by 5.22% in the year 2011, because the company’s
shareholder equity decreases.
28.00%
29.00%
30.00%
31.00%
32.00%
33.00%
34.00%
35.00%
36.00%
37.00%
38.00%
2011 2010
2011
2010

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Conclusion:
The common size statement helps to do the analysis of the company, at what position
the company stands on the basis of shareholders performance and its profit oriented
area. As unilever is the multinational company, which makes so, many brands, above we
have done the analysis that at what stage company stands.