Report & accounts 2002 in full - Unilever

Report of the auditors to the members
of Unilever N.V. and Unilever PLC
We have audited the accounts, which have been prepared
under the historical cost convention, set out on page 66 to
112, 118 to 133 and 135 to 136. We have also audited the
auditable part of the directors’ remuneration report as set
out on page 60.
Respective responsibilities of directors and auditors
As described on pages 63 and 64, the directors are
responsible for preparing the Annual Report & Accounts
and Form 20-F. This includes responsibility for preparing
the accounts in accordance with applicable accounting
standards. Our responsibility is to audit the accounts in
accordance with applicable law, auditing standards and
listing rules in the Netherlands and United Kingdom.
We report to you our opinion as to whether the accounts
give a true and fair view and are properly prepared in
accordance with Title 9, Book 2 of the Civil Code in the
Netherlands and the United Kingdom Companies Act 1985.
We also report whether the auditable part of the directors’
remuneration report is properly prepared in accordance with
the applicable requirements in the Netherlands and the
United Kingdom. We would also report to you if, in our
opinion, the directors’ report was not consistent with the
accounts, if proper accounting records had not been kept,
if we had not received all the information and explanations
we require for our audit, or if information required regarding
directors’ remuneration and transactions were not disclosed.
We read the other information contained in the
Annual Report & Accounts and Form 20-F and consider
the implications for our audit report if we become aware
of any material misstatements or inconsistencies with
the accounts.
As auditors of Unilever PLC we review whether the
statement on pages 44 and 45 reflects the Company’s
compliance with the seven provisions of the Combined
Code specified for our review by the United Kingdom’s
Financial Services Authority and we report if it does not.
We are not required to consider whether the directors’
statements on internal control cover all risks and controls
or to form an opinion on the effectiveness of the Group’s
corporate governance procedures or its risk and control
procedures.
Basis of opinion
We conducted our audit in accordance with auditing
standards generally accepted in the Netherlands, the
United Kingdom and the United States. An audit includes
an examination, on a test basis, of evidence relevant to the
amounts and disclosures in the accounts and the auditable
part of the directors’ remuneration report. It also includes an
assessment of the most important estimates and judgements
made by the directors in the preparation of the accounts,
and of whether the accounting policies are appropriate to
the Group’s circumstances, consistently applied and
adequately disclosed.
Unilever Annual Report & Accounts and Form 20-F 2002
Report of independent auditors 65
We planned and performed our audit so as to obtain all
the information and explanations which we considered
necessary in order to provide us with sufficient evidence
to give reasonable assurance that the accounts and the
auditable part of the directors’ remuneration report are free
from material misstatement, whether caused by fraud or
other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation
of information in the accounts.
Netherlands and United Kingdom opinion
In our opinion, the accounts give a true and fair view of
the state of affairs of the Unilever Group, Unilever N.V. and
Unilever PLC at 31 December 2002 and of the profit, total
recognised gains and cash flows of the Group for the year
then ended. In our opinion the accounts of the Unilever
Group, and of Unilever N.V. and Unilever PLC respectively,
have been properly prepared in accordance with Title 9,
Book 2 of the Civil Code in the Netherlands and the United
Kingdom Companies Act 1985. In our opinion, the auditable
part of the directors’ remuneration report has been properly
prepared in accordance with the applicable requirements in
the Netherlands and the United Kingdom.
United States opinion
In our opinion, the accounts present fairly, in all material
respects, the financial position of the Unilever Group
at 31 December 2002 and 2001, and the results of its
operations, total recognised gains and its cash flows for each
of the three years in the period ended 31 December 2002,
in accordance with the accounting information and policies
on pages 66 to 68.
The accounting principles applied vary in certain significant
respects from accounting principles generally accepted
in the United States. The effect of the major differences
in the determination of net profit and capital and reserves
is shown on pages 118 and 119.
As discussed in note 18 to the consolidated accounts, the
Group changed its method of accounting for deferred taxes
in 2002 in accordance with accounting principles generally
accepted in the United Kingdom. The change has been
accounted for by restating comparative information at
31 December 2001 and 2000, and for the years then ended.
PricewaterhouseCoopers Accountants N.V.
Rotterdam, The Netherlands
As auditors of Unilever N.V.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London, England
As auditors of Unilever PLC
4 March 2003
Financial Statements