MIRA INFORM REPORT

Report No. :	304953
Report Date :	27.01.2015

IDENTIFICATION DETAILS

Name :	HINDUSTAN UNILEVER LIMITED
Registered Office :	Unilever House, B D Sawant Marg, Chakala, Andheri (East), Mumbai – 400099, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.10.1933
Com. Reg. No.:	11-002030
Capital Investment / Paid-up Capital :	Rs. 2162.700 Millions
CIN No.: [Company Identification No.]	L15140MH1933PLC002030
TAN No.: [Tax Deduction & Collection Account No.]	MUMH05398B / PNEH04468C
PAN No.: [Permanent Account No.]	AAACH1004N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	manufacturing and marketing of Consumer Products like Soaps and Detergents, Personal Products, Beverages, Packaged Foods, Others etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Aa (80)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a subsidiary of Unilever PLC and one of India’s Largest FMCG Company. It is a well-established and reputed company having excellent track record. The rating reflect HUL’s market leadership across segments in the fast-moving consumer goods (FMCG) industry supported by diverse product portfolio includes soaps and detergents, personal care products, and food as well as beverages. HUL has strong brands name across categories marked by extensive distribution network with strong advertising and marketing support. Further, rating also reflects HUL’s strong financial risk profile marked by strong liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating=AAA
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	10.09.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE [TEL. NO.: 91-22-39830000]

LOCATIONS

Registered Office :	Unilever House, B D Sawant Marg, Chakala Andheri (East), Mumbai – 400099, Maharashtra, India
Tel. No.:	91-22-39832429/ 39832285/ 32452
Fax No.:	91-22-39832413/ 28249457
E-Mail :	comsec.hul@unilever.com
Website :	www.hul.co.in
PLANTS :
NORTHERN REGION
LOCATION	ADDRESS
Barotiwala	Khasra No. 94-96, 355-409, Village Balyana, Barotiwala IA, Tehsil Kasauli, District Solan - 174103, Himachal Pradesh, India
Etah	G. T. Road, Etah – 207001, Uttar Pradesh, India
Haridwar	Plot No. 1, Sector 1A, Integrated Industrial Estate, Ranipur, Haridwar - 249403, Uttaranchal, India
Nalagarh	· Hudbust No. 143, Khasra No. 182, 183, 187/1, Village - Kiralpur, Tehsil - Nalagarh, District Solan - 174101, Himachal Pradesh, India · Khasra No. 1350 – 1318, Bhatoli Kalan, Hill Top Industrial Area, Jharmajri, Tehsil Nalagarh, District Solan - 173295, Himachal Pradesh, India
Orai	A-1, Industrial Area, UPSIDC, Orai, Jalaun - 285001, Uttar Pradesh, India
Rajpura	A-5, Phase ll-B, Focal Point, Rajpura - 140401, Punjab, India
Sumerpur	A-1, UPSIDC Industrial Area, Bharua, Sumerpur, Hamirpur - 210502, Uttar Pradesh, India
SOUTHERN REGION
Cochin	· Ernakulam North PO, Tatapuram, Cochin – 682014, Kerala, India · Edapally, Cochin – 682024, Kerala, India
Hyderabad	Uppal Kalan, Hyderabad – 500039, Andhra Pradesh, India
Chennai	C.P.T. Campus, Tharamani, Chennai – 600113, Tamilnadu, India
Hosur	Plot No.50 & 51, SIPCOT Industrial Complex, Hosur - 635109, Tamilnadu, India
Bangalore	Suburb Stage-II, Yashwantpur, Bangalore – 560022, Karnataka, India
Mangalore	Sultan Batter Road, Boloor, Mangalore – 575003, Karnataka, India
Mysore	Plot No. 424, Hebbal Industrial Area, Mysore – 570016, Karnataka, India
Pondicherry	· Off NH 45-A, Vadamangalam, Pondicherry - 605102, India · No. 3, Cuddalore Road, Kirumambakkam, Pondicherry – 607402, India
EASTERN REGION
Tinsukia	Dag No. 21 of 122 FS Grants, Mouza - Tingrai, Off NH No. 37, Doom Dooma Industrial Estate, Tinsukia - 786151, Assam, India
Haldia	PO Durgachak, Haldia - 721602,Midnapore, West Bengal, India
Kolkata	· 1, Transport Depot Road, Kolkata - 700088, West Bengal, India · 63, Garden Reach, Kolkata - 700024, West Bengal, India · P10 Taratola Road, Kolkata - 700088, West Bengal, India
WESTERN REGION
Khamgaon	C-9, MIDC, Khamgaon - 444303, District Buldhana, Maharashtra, India
Chhindwara	5/6 KM Stone, Narsinghpur Road, Lehgadua, Chhindwara - 480002, Madhya Pradesh, India
Chiplun	Plot No. B-7, Lote Parshuram MIDC, Khed Taluka, District Ratnagiri, Chiplun – 415722, Maharashtra, India
Goa	Plot Nos. 132-139, Kundaim Industrial Estate, Kundaim, Goa – 403115, India
Mumbai	Aarey Milk Colony, Goregaon, Mumbai – 400065, Maharashtra, India
Nasik	Plot No. A 8/9, MIDC, Malegaon, Sinnar - 422103, Maharashtra, India
Silvassa	Survey No.151/1/1, Village Dapada, Khanvel Road, Silvassa - 396230, India Survey No. 907, Kilwali Road, Amli Village, Near Gandhidham Bus Stop, Silvassa – 396230, India Orient Press Complex, Survey No. 297/1/2, Dungrapada, Village Saily, Silvassa - 396230, India Survey No. 46/11, Plot No 16, Naroli Road, Village Athal, Silvassa – 396230, India
Overseas Customer Service Centers :	Located at: · 300, Upper Richmond Road West, London SW 14, 7GJ, United Kingdom. Tel. No. 01 878 5254 Fax No. 01 879 1839 Telex : 918112 · 303, 5^th Avenue, Suite 709, New York 10016, U.S.A Tel. No. 212 725 0679 Fax No. 212 725 0718 Telex : 220715 · Suite 507, Akasaka Q Building, 7-9-5, Akasaka, Minato-Ku, Tokyo, Japan – 107 Tel. No. 03 583 1225 Fax No. 03 505 0541 Telex : 2423450
Major Operating Units At:	Located at: · Sewree, Mumbai, Maharashtra, India · Andheri, Mumbai, Maharashtra, India · Taloja, Maharashtra, India · Garden Reach, Kolkata, West Bengal, India · Shamnagar, West Bengal, India · Bari Brahmana, Jammu, India · Haldia, Gujarat, India · Plot No. 254, Sector IV, Special Economic Zone, Kandla, Gujarat, India · Chindwara, Madhya Pradesh, India · Pondichery, Tamil Nadu, India · Yavatmal, Maharashtra, India · Pune, Maharashtra, India
Branch Office :	123, G. N. Chetty Road, T. Nagar, Chennai – 600017, Tamilnadu, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Harish Manwani
Designation :	Chairman
Date of Birth/ Age :	59 Years
Name :	Mr. Sanjiv Mehta
Designation :	Managing Director and Chief Financial Officer
Name :	Mr. Sridhar Ramamurthy
Designation :	Executive Director, Finance and IT and Chief Financial Officer
Date of Birth/ Age :	48 Years
Name :	Mr. Pradeep Banerjee
Designation :	Executive Director, Supply Chain
Name :	Mr. Aditya Narayan
Designation :	Independent Director
Date of Birth/ Age :	61 Years
Name :	Mr. S. Ramadorai
Designation :	Independent Director
Date of Birth/ Age :	68 Years
Name :	Mr. O.P. Bhatt
Designation :	Independent Director
Date of Birth/ Age :	62 Years
Name :	Dr. Sanjiv Misra
Designation :	Independent Director
Date of Birth/ Age :	65 Years

KEY EXECUTIVES

MANAGEMENT COMMITTEE
Name :	Mr. Sanjiv Mehta
Designation :	Managing Director and Chief Executive Officer
Name :	Mr. Sridhar Ramamurthy
Designation :	Executive Director, Finance and IT and Chief Financial Officer
Name :	Mr. Hemant Bakshi
Designation :	Executive Director, Home and Personal Care
Name :	Mr. Pradeep Banerjee
Designation :	Executive Director, Supply Chain
Name :	Mr. Dev Bajpai
Designation :	Executive Director and Company Secretary
Name :	Ms. Geetu Verma
Designation :	Executive Director, Foods
Name :	Mr. Manish Tiwary
Designation :	Executive Director, Sales and Customer Development
Name :	Mr. B. P. Biddappa
Designation :	Executive Director and Human Resources

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	1454412858	67.23
Sub Total	1454412858	67.23
Total shareholding of Promoter and Promoter Group (A)	1454412858	67.23
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6038532	0.28
Financial Institutions / Banks	1971038	0.09
Central Government / State Government(s)	20	0.00
Insurance Companies	75811579	3.50
Foreign Institutional Investors	324514770	15.00
Sub Total	408335939	18.88
(2) Non-Institutions
Bodies Corporate	22778903	1.05
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	262891195	12.15
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	5324383	0.25
Any Others (Specify)	9488106	0.44
Directors & their Relatives & Friends	67331	0.00
Trusts	1427306	0.07
Non Resident Indians	7703795	0.36
Overseas Corporate Bodies	3600	0.00
Foreign Nationals	17205	0.00
Clearing Members	244990	0.01
Foreign Banks	23879	0.00
Sub Total	300482587	13.89
Total Public shareholding (B)	708818526	32.77
Total (A)+(B)	2163231384	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	2163231384	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group:

Sl.No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Unilever PLC	1114370148	51.51
2	Brooke Bond Group Limited	106739460	4.93
3	Unilever Overseas Holdings AG	68784320	3.18
4	Unilever UK & CN Holdings Limited	60086250	2.78
5	Brooke Bond South India Estates Limited	52747200	2.44
6	Brooke Bond Assam Estates Limited	32820480	1.52
7	Unilever Overseas Holdings BV	18865000	0.87
	Total	1454412858	67.23

BUSINESS DETAILS

Line of Business :

manufacturing and marketing of Consumer Products like Soaps and Detergents, Personal Products, Beverages, Packaged Foods, Others etc.

Products :

ITC Code No.	Product Descriptions
37.01	Soap
34.02	Detergents
09.02	Tea

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

· Bank of America

· Bank of Baroda

· Bank of India

· Citibank N.A.

· Deutsché Bank

· HDFC Bank

· Hongkong and Shanghai Banking Corporation

· ICICI Bank

· Indian Bank

· Punjab National Bank

· Royal Bank of Scotland

· Standard Chartered Bank

· State Bank of Hyderabad

· State Bank of India

· Syndicate Bank

· Union Bank of India

Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Address :	Mumbai, Maharashtra, India
Solicitors :
Name :	Crawford Bayley and Company
Address :	Mumbai, Maharashtra, India
Holding Company :	Unilever PLC
Subsidiaries (Extent of holding) :	· Aquagel Chemicals Private Limited (100%) (with effect from April 01, 2013) · Brooke Bond Real Estates Private Limited (100%) · Daverashola Estates Private Limited (100%) · Hindlever Trust Limited (100%) · Hindustan Unilever Foundation (76%) (with effect from December 19, 2012) · Jamnagar Properties Private Limited (100%) · Lakme Lever Private Limited (100%) · Levers Associated Trust Limited (100%) · Levindra Trust Limited (100%) · Pond’s Exports Limited (90%) · Unilever India Exports Limited (100%) · Unilever Nepal Limited (80%)
Trust :	Hindustan Unilever Limited Securitisation of Retirement Benefit Trust (100% control) (from October, 2012)
Fellow Subsidiaries :	· Brooke Bond Assam Estates Limited · Brooke Bond Group Limited · Brooke Bond South India Estates Limited · Conopco, Inc. · Corporativo Unilever de Mexico, S.de R.L. de C.V. (merged) · Glidat Strauss Limited · Lever International Marine Sup · Lipton Soft Drinks Ireland Limited · Mascolo Brothers Limited · OOO Unilever Rus · P.T. Unilever Indonesia, Tbk. · Tigi Holdings Limited · Tigi Linea International B.V. · UL Research and Development Vlaa · Unilever (Malaysia) Holdings Sdn Bhd · Unilever ASCC AG · Unilever Asia Private Limited · Unilever Australasia · Unilever Australia Limited · Unilever Bangladesh Limited · Unilever Brasil Limited · Unilever Business and Marketing Support AG · Unilever Canada Inc · Unilever Canada-Food Solutions · Unilever Chile SA · Unilever China Limited · Unilever De Argentina SA · Unilever Deutschland Produktions GmbH and Co. OHG · Unilever Employment Services B.V. · Unilever Europe IT · Unilever Gulf Free Zone Establishment, Arabia · Unilever Industries Private Limited · Unilever Italy Holdings Srl · Unilever Japan · Unilever Korea · Unilever Lipton Ceylon Limited · Unilever Mashreq International Company · Unilever N.V. · Unilever Overseas Holdings AG · Unilever Overseas Holdings B.V. · Unilever Pakistan Limited
Joint Venture :	Kimberly Clark Lever Private Limited
Employees' Benefit Plans where there is significant influence :	· Hind Lever Gratuity Fund · The Hind Lever Pension Fund · The Union Provident Fund

CAPITAL STRUCTURE

AS ON 30.06.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2,250,000,000	Equity Shares	Re. 1/- each	Rs. 2250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,163,107,800	Equity Shares	Re. 1/- each	Rs. 2163.108 Millions

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2,250,000,000	Equity Shares	Re. 1/- each	Rs. 2250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,162,696,292	Equity Shares	Re. 1/- each	Rs. 2162.700 Millions

· Reconciliation of the number of shares

Equity Shares :	31.03.2014
	Number of shares	Rs. in Millions
Balance as at the beginning of the year	2162472310	2162.500
Add : ESOP shares issued during the year	223982	0.200
Balance as at the end of the year	2162696292	2162.500

· Rights, preferences and restrictions attached to shares

Equity shares:

The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

· Shares in the company held by its holding company and subsidiaries of holding company in aggregate

Equity Shares of Re.1 held by :	31.03.2014
1,114,370,148 shares (March 31, 2013 : 794,806,750 shares) held by Unilever PLC, UK, the holding company	1114.400
340,042,710 shares (March 31, 2013 : 340,042,710 shares) held by subsidiaries of the holding company	340.000

· Details of equity shares held by shareholders holding more than 5% shares of the aggregate shares in the Company

Particulars	31.03.2014
Number of shares	114370148
Unilever PLC, UK, the Holding Company	51.53%

· Aggregate number of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding March 31, 2014)

Particulars	31.03.2014
No. of equity shares issued in the last 5 years under the Employee stock option plan/ performance share schemes as consideration for services rendered by employees	5703419

· Aggregate number of shares bought back during 5 years immediately preceding March 31, 2014

Particulars	31.03.2014
No. of equity shares bought back by the company	22883204

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2162.700	2162.500	2161.500
(b) Reserves & Surplus	30607.800	24577.700	32967.800
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	32770.500	26740.200	35129.300
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	2788.200	4762.500	3296.900
(d) long-term provisions	8386.900	7063.400	6669.500
Total Non-current Liabilities (3)	11175.100	11825.900	9966.400
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	57938.900	51676.900	46229.600
(c) Other current liabilities	8529.400	6161.500	5467.700
(d) Short-term provisions	19570.100	18720.200	12789.700
Total Current Liabilities (4)	86038.400	76558.600	64487.000
TOTAL	129984.000	115124.700	109582.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	23979.400	22567.900	21175.300
(ii) Intangible Assets	241.200	361.100	299.400
(iii) Capital work-in-progress	3120.800	2053.200	2051.300
(iv) Intangible assets under development	77.000	103.200	103.200
(b) Non-current Investments	6361.700	5480.300	1863.100
(c) Deferred tax assets (net)	1617.300	2047.800	2142.400
(d) Long-term Loan and Advances	6055.100	3842.900	4012.700
(e) Other Non-current assets	6.800	2968.400	0.000
Total Non-Current Assets	41459.300	39424.800	31647.400
(2) Current assets
(a) Current investments	24579.500	17826.300	22519.000
(b) Inventories	27475.300	25269.900	25166.500
(c) Trade receivables	8164.300	8334.800	6789.900
(d) Cash and cash equivalents	22209.700	17078.900	18300.400
(e) Short-term loans and advances	5376.800	6482.600	4807.000
(f) Other current assets	719.100	707.400	352.500
Total Current Assets	88524.700	75699.900	77935.300
TOTAL	129984.000	115124.700	109582.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations, net	280191.300	258102.100	221163.700
		Other Income	6210.300	6069.000	2783.100
		TOTAL	286401.600	264171.100	223946.800
Less	EXPENSES
		Cost of Materials Consumed	111598.100	102846.600	85848.900
		Purchase of Stock-in-trade	33501.900	32353.100	30241.400
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(1663.800)	(311.300)	(1287.300)
		Employee Benefits Expenses	14359.500	13183.400	11072.800
		Other Expenses	77643.000	69992.800	59799.900
		TOTAL	235438.700	218064.600	188250.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		50962.900	46106.500	35696.500
Less	FINANCIAL EXPENSES (D)		360.300	251.500	12.400
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		50602.600	45855.000	35684.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2605.500	2360.200	2182.500
Less/ Add	EXCEPTIONAL ITEMS		2286.800	6084.000	1188.700
	PROFIT BEFORE TAX (E-F) (G)		50283.900	49578.800	34690.300
Less	TAX (H)		11609.000	11612.100	7776.300
	PROFIT AFTER TAX (G-H) (I)		38674.900	37966.700	26914.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5352.800	17739.600	12356.000
Less	APPROPRIATIONS
		Appropriations Interim dividend on equity shares	11894.100	9729.800	7563.400
		Special dividend on equity shares for	0.000	17295.300	0.000
		Dividend distribution tax	4615.400	6556.900	2629.600
		Transfer to general reserve	3867.500	3796.700	2691.400
		Proposed final dividend on equity	16220.200	12974.800	8646.000
	BALANCE CARRIED TO THE B/S		7430.500	5352.800	17739.600
	EARNINGS IN FOREIGN CURRENCY
		Exports at FOB (including exports to Nepal and Bhutan)	912.100	1479.600	1620.900
		Income from services rendered	4567.000	5068.400	3277.100
		TOTAL EARNINGS	5479.100	6548.000	4898.000
	IMPORTS
		Raw and packing materials	7359.800	7179.600	7406.600
		Stores, spare parts and components	445.400	225.400	189.400
		Capital Goods	821.100	759.200	381.600
		TOTAL IMPORTS	8626.300	8164.200	7977.600
	Earnings Per Share (Rs.)
	Basic		17.88	17.56	12.46
	Diluted		17.87	17.55	12.45

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	13.80	14.71	12.17
Operating Profit Margin (PBIDT/Sales)	(%)	18.19	17.86	16.14
Return on Total Assets (PBT/Total Assets}	(%)	42.32	47.02	33.54
Return on Investment (ROI) (PBT/Networth)		1.53	1.85	0.99
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.03	0.99	1.21

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	2161.500	2162.500	2162.700
Reserves & Surplus	32967.800	24577.700	30607.800
Net worth	35129.300	26740.200	32770.500
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	221163.700	258102.100	280191.300
		16.702	8.558

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	221163.700	258102.100	280191.300
Profit	26914.000	37966.700	38674.900
	12.17%	14.71%	13.80%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Presentation Date: 18.12.2014

Lodging No: WPL/3333/2014 Filing Date: 18.12.2014

Petitioner: THE FEDERATION OF HINDUSTAN LEVER Respondent: M/S. HINDUSTAN

UNILEVER LIMITED

Petn. Adv : MEENA HARSHAD DOSHI (I3021)

District: MUMBAI

Bench: SINGLE

Status: Pre-Admission Category: WRIT PETITION (LABOR MATTERS)

Last Date: 20.01.2015

Stage: FOR ADMISSION – FRESH [ORIGINAL SIDE MATTERS]

Last Coram: HON’BLE SHRI JUSTICE RAJESH G. KETKAR

Act: Industrial Dispute Act, 1947

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

CHANGE OF ADDRESS:

The registered office of the company has been shifted from Hindustan Lever House, 165/166, Backbay Reclamation, Mumbai – 400020, Maharashtra, India to the present w.e.f. 01.01.2012

COMPANY INFORMATION

Subject is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company is a market leader in the FMCG business comprising Home and Personal Care (HPC) and Foods and Refreshments. The company has manufacturing facilities across the country and Research and Development centres in Mumbai and Bangalore and sells primarily in India through independent distributors and modern trade.

ECONOMY AND MARKETS

The year witnessed divergent growth globally, led by strengthening of the US economy, uneven and subdued growth in the Euro area and Japan coupled with a slowdown in Developing & Emerging markets.

In the domestic market, growth continued to be muted with the second successive year of sub 5% GDP growth. The year saw steep currency depreciation in an environment where industrial activity remained in contraction mode, consumption demand continued to weaken, while lacklustre capital goods production pointed to stalled investment demand.

With sluggish growth across the larger economy, further compounded by high consumer inflation and weak sentiment, market growth across FMCG categories moderated throughout the year in both volume and value terms. The discretionary categories and premium segments were particularly under pressure. The operating context for the year was challenging, given the backdrop of a market slowdown, a volatile input cost environment and heightened competitive intensity.

The Company’s performance for the year 2013-14 has to be viewed in the context of aforesaid economic and market environment.

PERFORMANCE OF BUSINESSES AND CATEGORIES

Home and Personal Care (HPC)

The Home and Personal Care (HPC) business consists of Soaps, Detergents, Household Care and Personal Products, which includes categories like Skin Care, Hair Care, Oral Care, Colour Cosmetics and Deodorants. During the year, the HPC business registered robust growth ahead of market.

The opportunity for growth in India continues to be immense across all HPC categories. This fact is also reflected in high levels of competitive intensity in the marketplace. The Company believes that both unwavering focus on competitive growth in core categories as well as market development to build segments of future are critical for sustained growth and long term value creation. While focusing on the core categories, the Company has also invested significantly in the segments of future, i.e. the segments which are expected to drive future growth.

Rural continues to be a key area of focus for the Company. During the year, the Company reached out to 8,500 villages across India with an ambition to improve the health and hygiene of children, through school contact and Mohalla programmes. At the School Contact Programme, the Company’s brands, Lifebuoy and Pepsodent, encouraged and educated children on the importance and correct method of handwashing and brushing their teeth. In the Mohalla programme, the Company demonstrated to consumers the benefits and usage of new and emerging categories, such as facewash, hair conditioners and fabric conditioners.

In a highly competitive scenario, where new brands and offerings are entering the market almost every quarter, the Company delivered competitive growth, driven by innovation, sharper in-market execution, competitive marketing and trade investments behind the brands. The Company sustained strong focus on innovation across the portfolio and continued to delight consumers with a range of exciting offerings launched during the year. The Company has also significantly stepped up investment in Digital Media, which is expected to be the media channel of the future. The Company continued to leverage and benefit from the inputs received from Unilever across various aspects of the business, including technology, innovation and communication.

Volatile and rapidly changing commodity markets, including vegetable oil and crude oil, coupled with depreciating currency markets continued posing a major challenge during the year. There were also regulatory changes in the space of media availability, leading to more efficient media buying and better deployment of non-TV led media. Even in this challenging environment, the Company delivered profitable growth through robust cost-saving programmes and judicious pricing, without compromising on the competitiveness of brand investments, both in terms of technology as well as advertising and promotion.

Soaps and Detergents

The Soaps and Detergents segment delivered healthy volume led turnover growth of 8.0% during the year. Further, growth during the year was profitable as segmental profit increased by 10.5%, through a mix of cost savings, supply chain efficiencies and judicious pricing.

Soaps category recorded a very successful year with strong volume growth in a market which saw an overall decline in volumes. The growth was driven by prompt and decisive pricing actions on Lifebuoy, Lux, Breeze and Dove, which gained consumer franchise. These actions were supported by consumer centric activations, effective advertising and sustained high levels of distribution. The growth was witnessed not only in the core bars business, but also in the liquids portfolio, led by Lifebuoy Handwash, where the Company continues to invest behind developing the market through a mix of building penetration and increasing consumption.

Detergents category recorded another year of steady growth with a good balance of price and volume growth. Notwithstanding a challenging economic environment, where category growth slowed and the rate of premiumisation came off, for the Company the performance in the category continued to be led by the premium end. Surf continued to lead category premiumisation with double digit growth, buoyed by the continuing momentum on Surf Excel Easy Wash, since its relaunch in the previous year. The performance in Rin was led by the bars portfolio while powders were re-launched towards the end of the year, with an improved product and new thematic communication. Wheel’s performance progressively stepped up over the year, with the second half benefiting from the re-launch of the powders portfolio as significant investments were made to deliver a superior formulation resulting in quality enhancement for the segment. The brand was further supported by a range of impactful activation including the Gold Coin programme, which was well received. The emerging market development categories of Machine Wash (with Surf Excel Matic) and Fabric Conditioners (with Comfort) continued to perform well. Besides, the Company also initiated the creation of Detergent Liquid market in India with the launch of Surf Excel Detergent Liquid. The Company will continue to focus on driving innovations, exercising cost control across the value chain and delivering effective communication to win in the Detergents category.

Household Care category delivered double digit growth during the year on the back of robust volumes. Vim, which continues to delight consumers through superior product quality and strong advertising, is now a Rs. 1000+ crore brand. Innovations, such as the Anti-Germ mix (bar and liquids) and the monthly tub pack, continue to drive consumption and premiumisation in urban India. At the same time, strengthening the presence across key price points in dishwash bars helped reach new consumers in rural India. Domex strengthened the toilet cleaning business through the launch of an innovative product, Domex Zero Stain. The innovation, aimed at hygiene conscious users who have high incidence of stain problem in toilets, has helped fuel brand growth. Domex Toilet Academy (DTA) programme was launched during the year with an aim to eradicate open defecation by building toilets and improving sanitation facilities. Through the right partnerships, DTA is helping promote the importance of safe and hygienic sanitation practices in local communities.

Personal Products

Personal Products categories comprise Skin Care, Hair Care, Oral Care, Colour Cosmetics and Deodorants. In a challenging market environment, where the growth of discretionary categories has been particularly under pressure, the Personal Products segment delivered a healthy turnover growth of 9.2%. Segmental profit was up by 6.1%, as the Company continued to invest for competitive growth in its core categories, whilst building the segments of the future.

Skin Care category registered good growth in a slowing market. Fair and Lovely was re-launched with a new mix - the ‘Best Ever’ Fair and Lovely - a product that was tailor-made to deliver superior skin lightening results in India. Fair and Lovely registered a step up in its growth trajectory post the re-launch. Vaseline Healthy White, with a proposition of not just giving moisturisation but also instant and lasting skin whitening, was very successful, resulting in double-digit growth for the brand. Dove and Lakmé also grew very well during the year, powered by strong marketing inputs. Lakmé delivered a strong performance during the year on the back of a range of exciting innovations that were launched. Lakmé skin forayed into the anti-aging segment with the launch of Youth Infinity skin cream. In addition, under Lakmé, a new Complexion Care (CC) cream was introduced, the Perfect Radiance range was relaunched and the facial cleansing portfolio was revamped with the addition of new Clean Up range. Pond’s launched BB+ cream in India to leverage on the global beauty trend catering to consumers looking for instant optical radiance.

Hair Care delivered a strong year of volume led broad based double digit growth. Dove, Sunsilk and Clinic Plus grew in double digits during the year. The TRESemmé proposition of ‘Salon like hair, at home everyday’ has been well received by consumers. The brand which was introduced in September 2012 has made very good progress and been instrumental in accelerating the premiumisation agenda. The fact that the brand neared the significant milestone of Rs. 100 crores of annual turnover in its very first full year post launch is an example of efficiently leveraging the global Unilever portfolio to win locally with consumers. In addition, the Company launched Toni and Guy, another premium brand from the global Unilever hair portfolio. It is the first time that the Company launched the brand through e-commerce. Going forward, Toni and Guy will be rolled out in select stores across India. The Company continued to focus on market development by investing strongly behind the emerging high potential hair conditioners segment, thereby growing ahead of the market.

In Oral Care, significant investments were made to sustain competitive position in the category, as competitive intensity stepped up dramatically in the course of the year. The Company continued to focus on strengthening the Oral Care brands and the portfolio, despite the intense competitive pressure. Pepsodent Germicheck was re-launched during the year with an improved formulation with better germ attack power. Pepsodent also continued to strengthen its expertise and authority credentials through the Expert Protection range and with a strong dental community programme. The growth in Closeup continued to be led by a range of exciting activations. The Company has also significantly revamped its toothbrushes business model by pruning and sharpening the portfolio during the year.

In the Deodorant portfolio, through Axe, the Company continued to deploy exciting innovations and impactful campaigns. The ‘AXE Blast’ campaign, endorsed by a popular Bollywood youth icon, was well received by consumers. The Company has strong innovation plans for the forthcoming year in this category. The Company currently imports a large portion of deodorants in the aerosol form. Unilever is in the process of implementing a project to establish a world class deodorants manufacturing facility in India. This facility will provide a regular supply of high quality deodorant products to cater to markets across the world, including India.

Lakmé Colours has had an exceptional year with high double digit growth. The reinvention of the brand as ‘Pro-stylist’ across makeup, skin and salon has brought its expert credentials to the forefront through premium innovations in skin care and makeup. In makeup, the Company has launched the 9 to 5 platform - to address working women, many first to market innovations under Absolute like Gel nails and Face Stylist and limited editions like Pop Tints. The premium segment contribution for makeup has grown particularly well in the last two years. The Lakmé brand has seen a step up in investments and all key innovations have been executed through the beauty advisory channel, where expansion of footprint and activation through bringing the brand proposition alive at retail has contributed to the market development. Lakmé has also leveraged the digital communication channel, through ‘how to’ videos, to educate consumers on using makeup and adopting new regimes in skin care.

Foods Beverages (FandB)

The Foods and Beverages (FandB) portfolio of the Company comprises Tea, Coffee, Processed Foods, Frozen Desserts, Ice Creams, Bakery products and Out of Home operations, including BRU World Café.

During the year, FandB business delivered strong double digit growth in a challenging market context. This was driven by a single minded focus on the core brands and driving market development across key categories. The Packaged Food category continues to represent a significant consumer and business opportunity, given the shifts in the income pyramid, increase in working women, growing health concerns and the need for taste with convenience. The Company is consistently focused on developing newer offerings that can best fulfil existing and emerging consumer needs. The Company continues to focus on driving availability and distribution, alongside building salience for its brands and relevance. In addition, the Company is driving upgradation across categories with strong research and development support from Unilever and a deep insight into Indian consumer and customer needs.

Beverages

The Beverages segment delivered 12.4% turnover growth in the year, well ahead of the market, on the back of a strong double digit performance in Tea. This was accompanied by a significant step up in segmental profits which increased by 22.4%.

At the onset of the year, the Packet Tea market witnessed steep commodity inflation which drove market to volume decline. Despite this environment, the Company delivered competitive and profitable growth. The double digit growth across all brands was driven by a strengthened mix and focused in-market activities.

The Company drove its five leading brand positions across India, with all brands recording healthy volume growth and growing across major geographies. Across both the premium and popular price segments, brands grew competitively. Taj Mahal and 3 Roses continued to drive premiumisation and Red Label and Taaza offered unbranded tea users a good mix of superior, great tasting tea and value. Taj Mahal and Lipton continued to grow the tea bags market through market development. The Company strengthened its position in every segment of tea bags market, particularly flavoured and green tea.

The Instant Coffee market was challenged for growth in the context of steep commodity inflation in the previous year with the accompanying drop in consumption, particularly in the core South markets. In this context, the Company’s focus was to drive back lapsers to the category, through enhanced product experience and market development efforts. The Company also continued to drive BRU Gold – a premium offering, targeted at new age consumers of coffee in the non-traditional markets. BRU Gold met with good success as the franchise grew competitively ahead of markets.

Packaged Foods

The Packaged Foods segment of the Company comprises culinary products such as jams, ketchups and squashes under Kissan; soups, soupy noodles and meal makers under Knorr; branded staples (atta and salt) under Annapurna; bakery products under Modern; and frozen desserts / ice creams under Kwality Wall’s and Magnum. The segment delivered 10.0% turnover growth with a segmental profit growing by 65.5% during the year, as the Company continued to drive efficiencies and mix, while continuing to invest in building this business.

Kissan sustained its strong, consistent performance, delivering another year of double digit growth, driven by impactful activation around unlocking everyday relevance. A strong insight of the ‘Tiffin-moment’ being a stress point in the mother’s life resulted in a solution in the form of ‘Kissan Rolls’, where mothers could give their kids healthy vegetables made tastier with Kissan in the form of a roll. This singular message, along with our reiteration of the fact that Kissan is made from 100% tomatoes through ‘Kissanpur’, made Kissan the brand of choice. During the year, Kissan moved up 70 places in India’s Most Trusted Brands. The consumer preference, along with a strong distribution increase across both Ketchup and Jam, resulted in the business growing significantly faster than the market.

The performance of Knorr in the year was led by Soups, with the convenient Instant Soups single serve format doing particularly well. The Company has increased the focus on core soup markets and ensured that the brand salience is at its highest in these markets. The Company also invested behind the instant ‘cup-a-soup’ range, as this portfolio is driving growth for the soups category, given its consumer offering of tasty and healthier products, at a very affordable price. Knorr Soupy Noodles was restaged at the start of the year. The Knorr Meal Maker portfolio was also re-launched and has met with an encouraging initial response.

During the year, the Company focused on growing the Annapurna business profitably. Towards achieving this objective, the Company made sharp choices on the brand’s footprint and improved its cost structure. As a result, there is a significant progress in brand profitability, which now allows the Company to be competitive and invest back in the brand.

The Company also significantly focused on young nascent experiential marketing. Given that most of the play is in market development categories, it is critical that consumers sample the Company’s products and discover the great taste and convenience that the products offer.

Modern Foods, a portfolio of Bakery Foods, continued its momentum delivering strong double digit growth with improved profitability. The Company stepped up distribution network in new geographies and this initiative has yielded encouraging results. Key innovations like Oats and Ragi Wheat Bread, festive Cakes and Cookies, coupled with improved operational efficiencies contributed well to the growth and profitability of the Modern Foods business.

During the year, the Frozen Desserts business faced a challenging external environment with slowing discretionary spends and a shorter season. But with long term positive outlook, the Company continued investing behind the distribution expansion and building big brands. Cornetto grew ahead of market on the back of distribution and strong communication. Cornetto also remained at the forefront of the Company’s digital strategy. Cornetto’s Facebook page was adjudged as No.1 in India by an advertising magazine. Magnum, Unilever’s most premium ice cream brand, was test piloted in Chennai during 2013 and met with a very good response. Magnum was rolled out to four more cities in the beginning of 2014. Modern Trade performance has been very good in Ice Creams as the Company strengthened its position in this key channel. During the year, the Company also rolled out Perfect Stores programme, a first for the category and the performance across these stores has been leading overall category growth. Availability and visibility are still the core drivers of the business and the Company continued investing behind them. The Company is driving efficiencies in the business, particularly in asset management and infrastructure, while stepping up investments behind big impulse brands, viz. Magnum, Cornetto and Paddle Pop.

Water

Pureit is the world’s largest selling range of water purifiers in non-pitcher and non-faucet mount segment. Pureit was ranked as the most trusted brand in water purifiers in Brand Equity’s 2013 Most Trusted Brands Survey. The brand continues to strengthen its position in a slowing and weak consumer durables market. During the year, Pureit’s new product innovations focused on driving superior functionality and aesthetics at a lower cost, with the launch of Pureit Marvella Slim RO, a premium water purifier at an affordable price. Pureit Marvella Slim RO has helped Pureit strengthen its position in the electric water purifier segment. The launch of ‘Save 3 Gas Cylinders’ communication for storage purifiers was another testimony to Pureit’s pioneering innovativeness in terms of driving market development of water purifiers by establishing cost and convenience advantage over conventional methods of purification. Pureit associated with Miss India World 2013 winners, to spread awareness about the importance of safe drinking water under its ‘Unilever Pureit Protecting Lives Programme’. During the year, the Company focused on widening its distribution reach for its range of purifiers in different retail formats across the country. Substantial progress was made in evolving the Germkill kits business for storage purifiers and also improving in-store execution for the premium range of purifiers. The focus on driving category premiumisation continues with the launch of Pureit Ultima UV + RO towards the end of the year. The product, which by far is the most premium offering from Pureit, offers advanced technology and superior aesthetics met with a very encouraging response from consumers in the early days since its launch.

Exports Business

FMCG Exports (Unilever India Exports Limited)

Unilever India Exports Limited (UIEL) is a wholly owned subsidiary of the Company, engaged in FMCG Exports business. The focus of the FMCG exports operation is two-fold (a) to develop overseas markets by driving distribution of ethnic brands, such as Kissan, BRU, Brooke Bond, Lakmé, Pears among the Indian diaspora in international markets, (b) to effectively provide cross border sourcing of FMCG products to other Unilever companies across the world.

The Home and Personal Care segment in the exports business has witnessed a stable year, driven primarily by Soaps and Hair Care. Brands like Pears have registered healthy growth in the focused markets through strong advertising and activation support and have received strong accolades from the consumers in the UK market. For Unilever sourcing countries, Lifebuoy has delivered double digit growth post its launch across Asian markets. Fair and Lovely and Vaseline Jelly continue to show stable growth in the key geographies of the Middle East. The Foods and Beverages segment of the business witnessed a modest growth. Instant Tea / Packet Tea and premix witnessed strong double digit growth, whereas coffee sales remained steady. The profitability of the overall segm

ent improved significantly with focused cost reduction programmes.

Non-FMCG Exports

In the specialty business, which continued to be a part of the Company post the demerger of FMCG Exports business to UIEL, Rice maintained a flat performance, while continuing to focus on expanding geographies, seeding opportunities and marketing/ brand building initiatives to accelerate growth in the coming years.

Leather (Pond’s Exports Limited)

The Leather business performed well with improved operating profitability and robust double digit sales growth. This performance was achieved through new product designs, excellent customer service, world class quality and cost innovations.

Beauty and Wellness (Lakme Lever Private Limited)

Lakme Lever Private Limited (LLPL), a wholly owned subsidiary of the Company, has 225 salons, of which 57 are Company owned / managed and 168 are franchisee salons. LLPL delivered double digit salon growth for the fourth consecutive year, although the market slowed down by consumers pulling back on discretionary spends. Net expansion improved from 8 salons in the previous year to 36 salons in this financial year. Innovations like the Perfect Radiance and Youth Infinity facial rituals have delighted consumers and driven growth. The flagship Lakmé Absolute Salon, which magnifies the backstage experience with professional styling expertise and bespoke beauty rituals, was launched in Mumbai. The Company will continue to support LLPL to drive growth in this attractive market opportunity.

Hindustan Unilever Network

Hindustan Unilever Network business consists of three major brands, Aviance (Personal Care), Lever Ayush (Health Care) and Lever Home (Detergents, Household Care and Toothpaste).

The year has been extremely challenging for the entire direct selling industry, including for the Company, due to ambiguity on acceptable norms for direct selling in India. As responsible corporate citizens, the Company has always conducted its business within the framework of Indian law and has recently re-launched its compensation plan to be more competitive. The Company is reviewing the strategy for this business.

Kimberly Clark Lever Private Limited (KCL)

KCL is a Joint Venture between the Company and Kimberly- Clark Corporation, USA, with infant care diapers as its primary product category. The year witnessed a strong growth delivery by Huggies brand led by Huggies Wonder Pants. The re-launched Huggies Wonder Pants with improved product features and performance had a good growth momentum throughout the year. The low penetration levels in India’s infant care diapers markets offer significant growth potential for this category. This growth opportunity has attracted increased levels of competitive intensity in the recent past with multinationals making significant investments in India.

To participate effectively in this growth opportunity, KCL aims to bring in regular innovations to the market through sustained and appropriate investments in the short to medium term. As a Joint Venture partner, the Company remains committed to this business.

OUTLOOK

Global economic indicators are expected to improve, led by positive prospects in advanced economies. Despite a strengthening external demand, uncertainty continues to loom large on the economic horizon of some emerging economies owing to domestic fragilities. The global economic climate continues to be volatile, uncertain and prone to geo-political risks.

For India, economic activity is expected to improve modestly, driven by global economic revival and moderation in inflation. Upside pressures on inflation and consumption, hinge on the vagaries of the monsoon and the pace of revival of the investment climate will determine to a very large extent India’s economic performance, going forward.

FMCG markets are expected to grow; however, uncertain global economic environment, inflation and competitive intensity continue to pose challenges. While the near term conditions pose a challenge for the economy, the medium to longer term secular trends based on rising incomes, aspirations, low consumption levels, etc. are positive and an opportunity for the FMCG sector, in general and for the Company, in particular.

Cautionary Statement

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Company’s objectives, projections, estimates and expectations, may constitute ‘forward looking statements’ within the meaning of applicable laws and regulations and actual results might differ

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Railway Sidings

· Furniture and Fixtures

· Office Equipments

· Motor Vehicles

· Others

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Claims against the company not acknowledged as debts
Income-tax matters	5459.000	4685.600
Sales tax matters - Rs. 528.400 Millions (March 31, 2013 - Rs. 517.200 Millions) net of tax	800.500	783.500
Excise duty, service tax and customs duty matters - Rs. 1326.100 Millions (March 31, 2013 - Rs. 937.100 Millions) net of tax	2008.900	1419.600
Other matters including claims related to employees/ ex-employees, property related demands, etc - Rs. 457.400 Millions (March 31, 2013 - Rs. 528.100 Millions) net of tax (a) It is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. (b) The company does not expect any reimbursements in respect of the above contingent liabilities. (c) Future cash outflows in respect of the above are determinable only on receipt of judgements/ decisions pending with various forums/ authorities.	692.900	800.000

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2014

(Rs. in Millions)

Particulars		Unaudited Results for the Quarter ended		Unaudited Results for the Nine Months ended
		31^ST December 2014	30^th September 2014	31^ST December 2014
		Unaudited	Unaudited	Unaudited
1	Income from Operations
	(a) Net sates/income from operations (Net of excise duty)	75791.800	74655.400	226154.900
	(b) Other Operating Income	1951.400	1737.900	5144.900
	Total income from operations (net)	77743.200	76393.300	231299.800
2	Expenses	65159.000	64736.800	194561.000
	(a) Cost of materials consumed	28606.300	29746.800	89361.300
	(b) Purchases of stock-in trade	9491.200	9333.900	27839.700
	(c) Changes in inventories of finished goods. work-in-progress and stock in trade	382.400	509.100	745.000
	(d) Employee benefits expense	4417.900	4130.100	11904.700
	(e) Depreciation and Amortization Expenses	730.800	763.700	2161.700
	(f) Other Expenses	11759.200	11002.700	34058.100
	(g) Advertisement	9771.200	9250.500	28470.500
	Total expenses
3	Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	12584.200	11656.500	36738.800
4	Other Income	1200.700	1978.000	5199.800
5	Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	13784.900	13634.500	41938.600
6	Finance Costs	42.400	63.300	168.200
7	Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	13742.500	13571.200	4170.400
8	Exceptional items	3965.800	486.800	4849.000
9	Profit/ (Loss) from ordinary activities before tax (7+8)	17708.300	14058.000	46619.400
10	Tax expenses	5186.600	4176.400	13647.700
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	12521.700	9881.600	32971.700
12	Extraordinary item (net of tax expense)	-	-	-
13	Net Profit / (Loss) for the period (11-12)	12521.700	9881.600	32971.700
14	Share of profit' (loss) of associates	-	-	-
15	Minority Interest	-	-	-
16	Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)	12521.700	9881.600	32971.700
17	Paid up equity share capital (Face Value of Rs 10/-each)	21632	21632	21632
18	Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	-	-	-
19.i	Earnings per share (before extraordinary items) of Rs.10/- each (not annualized):
	(a) Basic	5.79	4.57	15.24
	(b) Diluted	5.79	4.57	15.24
A	PARTICULARS OF SHAREHOLDING
1	A. Public Shareholding
	- Number of shares	708818526	708737237	70818525
	- Percentage of shareholding	32.77%	32.76%	32.77%
2	Promoters and Promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares	NIL	NIL	NIL
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	NA	NA	NA
	- Percentage of shares (as a % of the total Share Capital of the Company)	NA	NA	NA
	b) Non Encumbered
	- Number of shares	1454412858	1454412858	1454412858
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100.00%	100.00%	100.00%
	- Percentage of shares (as a % of the total Share Capital of the Company)	67.23%	67.24%	67.23%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	22
	Disposed off during the quarter	22
	Remaining unresolved at the end of the quarter	NIL

Particulars	Unaudited Results for the Quarter ended		Unaudited Results for the Nine Months ended
	31^ST December 2014	30^th September 2014	31^ST December 2014
	Unaudited	Unaudited	Unaudited

Segment Revenue (Sales and Other operating income) Soaps and Detergents Personal Products Beverages Packaged Foods Others (includes Exports, Water, Infant Care Products, etc)	36002.200 24545.500 9196.500 4198.800 3535.000	37551.00 21427.400 8991.300 4513.100 3618.000	112029.000 67568.500 26553.400 14149.700 10182.100
Total Segment Revenue Less: Inter Segment Revenue	77478.000 -	76100.800 -	230482.700 -
Net Segment Revenue	77478.000	76100.800	230482.700
Segment Results (Profit before tax and interest from ordinary activities) – Soaps and Detergents Personal Products Beverages Packaged Foods Others (includes Exports, Water, Infant Care Products, etc)	5024.100 6809.100 1410.000 (212.600) (37.600)	5111.900 5222.600 1557.000 199.800 115.700	15454.000 17998.200 4329.500 577.700 (76.500)
Total Segment Results Less: Finance Costs Add/(Less): Other unallowable income net of unallowable expenditure	12993.000 (42.400) 4757.700	12207.000 (63.300) 1914.300	38282.900 (168.200) 8504.700
Total Profit Before Tax from ordinary activities	17708.300	14058.000	46619.400
Capital Employed (Segment assets less Segment liabilities) – Soaps and Detergents Personal Products Beverages Packaged Foods Others (includes Exports, Water, Infant Care Products, etc)	(4981.700) (7754.500) 523.400 1405.400 (37.500)	(3776.700) (6119.200) 946.100 1542.300 (0.500)	(4981.700) (7754.500) 523.400 1405.400 (37.500)
Total Capital Employed in segments Add: Unallowable corporate assets less corporate liabilities	(10844.900) 61147.900	(7408.000) 60564.000	(10844.900) 61147.900
Total Capital Employed	50303.000	53156.000	50303.000

Notes on Segment Information

1. Segment Revenue, Results and Capital Employed figures represent amounts identifiable to each of the segments. Other “unallocable income net of unallocable expenditure” mainly includes interest, dividend, gain on sale of investments (net), expenses on common services not directly identifiable to individual segments, corporate expenses and exceptional items.

Capital Employed figures are as at 31^ST December, 2014, 31^ST December, 2013 and 31st March, 2014. Unallocable corporate assets less corporate liabilities mainly represent investment of surplus funds and cash and bank.

2. Previous period figures have been re-grouped/reclassified wherever necessary to conform to this period’s classification.

Notes:

1. Net Sales grew by 7.7% during the quarter with Domestic Consumer Business (FMCG + Water) growing by 7.6%.

2. Operating Profit (Profit from Operations before Other Income, Finance costs and Exceptional Items) for the quarter at Rs. 12584.2 Millions (DQ'13: Rs. 11623.800 Millions) grew by 8.3%.

3. Profit after tax from ordinary activities before Exceptional Items net of tax and prior period tax adjustments (refer note 7) for the quarter at Rs. 9553.200 Millions (DQ'13: Rs. 9547.400 Millions).

4. During the year, the Company has adopted estimated useful life of fixed assets as stipulated by Schedule II to the Companies Act 2013, applicable for accounting periods commencing April 2014 or re-assessed useful life based on technical evaluation. Depreciation for the quarter includes an amount of Rs. 47.600 Millions consequent to the revision in useful life effective 1st April 2014.

5. Employee benefits expense for the quarter Rs. 4417.900 Millions (DQ’ 13: Rs. 3477.200 Millions] includes a one-time provision of Rs. 385.300 Millions towards select contested matters.

6. Other income includes interest income, dividend income and net gain on sale of other non-trade current investments aggregating to Rs. 1200.700 Millions (DQ’13: Rs. 1310.300 Millions) and interest on income tax refund Rs. Nil ( DQ '13 : Rs. 116.300).

7. Exceptional items, net credit in DQ’14 include profit on sale of surplus properties Rs. 4072.900 Millions (DQ'13: 281.000 Millions) and restructuring expenses Rs. 107.100 Millions (DQ'13: Rs. 51.300 Millions).

8. Previous period figures have been re-grouped / reclassified wherever necessary, to conform to this period's classification.

9. The text of the above statement was approved by the Board of Directors at their meeting held on 19th January, 2015.

Limited Review: The Limited Review by the Statutory Auditors for the quarter as required under clause 41 of the Listing Agreement has been completed and the related Report is being forwarded to the Stock Exchanges. This Report does not have any impact on the above Results and Notes which need to be explained.

PRESS RELEASES

8% DOMESTIC CONSUMER SALES GROWTH, OPERATING PROFIT (PBIT) UP 8% IN DECEMBER QUARTER 2014

Mumbai, January 19th, 2015: Hindustan Unilever Limited announced its results for the quarter ending 31stDecember 2014.

During the quarter, the Domestic Consumer business grew at 8%, ahead of market, with 3% underlying volume growth.

Soaps and Detergents: Competitive growth sustained:

In Skin Cleansing, growth was driven by Lifebuoy and Lux. The liquids portfolio delivered another strong quarter led by Lifebuoy Handwash. In Laundry, growth was led by the premium segment with Surf maintaining its double digit growth momentum and Rin growth led by bars. Comfort Fabric Conditioner continues to lead market development with sustained high growth.

Household Care growth was led by Vim, driven by a strong performance on liquids.

Personal Products: Double digit growth in Skin and Hair

In Skin Care, Fair and Lovely, Pond’s and Lakme delivered double digit growth. Fair and Lovely sustained momentum with another quarter of double digit volume growth. The performance of Pond’s was led by premium skin lightening and talc while Lakme growth was buoyed by lotions and CC cream. The facial cleansing portfolio continued to register robust growth.

Hair Care delivered another quarter of volume led double digit growth driven by Dove, with Clinic Plus doing well and TRESemmé continuing to make good progress.

Oral Care had a subdued quarter as growth was impacted by the phase out of Excise Duty benefits and by a strong comparator in the base quarter. The performance of Close Up was led by the small pack portfolio while on Pepsodent, the new Salt and Clove and Gum Care variants did well. Actions planned to step up growth in 2015.

In Color Cosmetics, Lakme saw double digit growth on the core and ‘9 to 5’ ranges. The focus on innovation led growth continues as the portfolio was further strengthened with additions across lip and nail.

Beverages: Continued healthy performance

In Tea, Red Label, Taj Mahal and 3 Roses grew well, driven by a strengthened mix and focused in-market activities. Green Tea registered another quarter of high growth on sustained market development. In Coffee, Bru delivered double digit growth.

Packaged Foods: Fifth successive quarter of double digit growth

Market development continues to be the focus, resulting in double digit growth across all key brands. Kissan sustained its strong activation-led growth momentum across both Ketchups and Jams while Knorr performed well with Instant Soups more than doubling sales. Ice Creams delivered another strong quarter, led by Magnum and through sharper in-market execution on Kwality Walls.

Water: Strengthening category leadership

Pureit delivered another quarter of double digit growth, led by the premium segment. Pureit Ultima (RO+UV), launched earlier in the year with superior functionality and aesthetics continued to deliver strongly.

Sustained margin improvement 

Input costs were benign, led by Crude and this has started to reflect in the lower Cost of Goods Sold. Brand investments were sustained at competitive levels across all segments even as competitive intensity stepped up in the commodity linked categories. Profit before interest and tax (PBIT) grew by 8% and PBIT margin improved by +10 bps.This was after absorbing the impact of a one-time provision in employee costs for select contested matters, additional depreciation charge and phasing out of Excise Duty benefits.Profit after tax before exceptional items, PAT (bei), stood at Rs. 955 Crores while Net Profit atRs.1252Crores, was up 18%, despite the higher tax rate, aided by the exceptional income arising from the sale/transfer of properties.

Harish Manwani, Chairman commented: “We have delivered another quarter of competitive growth and margin improvement. We continue to strengthen the core of our business and drive the competitiveness of our brands in the market. At the same time, we are leading market development in relatively nascent categories such as packaged foods and premium personal care with strong results. Given the fast changing external environment, we are managing our business dynamically for sustained volume led growth and margin improvement”.

About Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company touching the lives of two out of three Indians. HUL works to create a better future every day. 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.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.50
UK Pound	1	Rs.92.16
Euro	1	Rs.69.62

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KAR
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL
HISTORY		80

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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