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Notes to Accounts of Hindustan Unilever Ltd.

Mar 31, 2015

1) COMPANY INFORMATION

Hindustan Unilever Limited (the ''Company'') 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), 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.

b) 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.

2) DUES TO MICRO AND SMALL ENTERPRISES

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

3) OTHER CURRENT LIABILITIES

a) There are no amounts due for payment to the Investor Education and Protection Fund Under Section 125 of the Companies Act, 2013 as at the year end.

4) MOVEMENT IN OTHER PROVISIONS (SHORT TERM AND LONG TERM) (REFER NOTES 6 AND 10)

Other Provisions (in Short Term and Long Term includes provision for tax disputes, employee related disputes, restructuring and other provisions)

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution.

5) CONTINGENT LIABILITIES

As at As at 31st March, 2015 31st March, 2014

Claims against the Company not acknowledged as debts

Income tax matters 558.99 545.90

Sales tax matters - Rs. 40.54 crores (March 31, 2014 - Rs. 52.84 crores) net of tax 61.42 80.05

Excise duty, service tax and customs duty matters - Rs. 134.23 crores (March 203.35 200.89 31,2014 - Rs. 132.61 crores) net of tax

Other matters including claims related to employees/ex-employees, property 78.20 69.29 related demands, etc - Rs. 51.62 crores (March 31,2014 - Rs. 45.74 crores) net of tax

(i) 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 as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.

(ii) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(iii) The Company''s pending litigations comprise of claims against the Company by employees and pertaining to proceedings pending with Income Tax, Excise, Custom, Sales/VAT tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

(iv) The Company has given Bank Guarantees in respect of certain matters of above contingent liabilities.

Corporate Guarantee given 8.20 -

(b) Total revenue expenditure (net of recoveries) on Research and Development (R&D) included in Note 35, eligible for weighted deduction under section 35(2AB) of the Income Tax Act, 1961 aggregates to Rs. 29.60 crores (2013-14 -Rs. 31.22 crores). The details are:

(c) The Company''s significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godown etc.) and computers. These leasing arrangements which are not non-cancellable (other than those specified in note below), range between 11 months and 10 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.

The Company has also given certain land and building on operating lease to a third party which has been disposed during the year. The lease arrangement was for a period of 5 years, including a non-cancellable term of 3 years. The license fee of Rs. 23.35 crores (2013-14 - Rs. 30.90 crores) on such lease is included in other operating revenue (Refer Note 27).

(d) Miscellaneous expenses include provision for other than temporary diminution in the value of investment in joint venture Rs. Nil crores (2013-14 - Rs. 13.46 crores) - Refer note 14(B)(b) and the net foreign exchange loss (i.e. exchange differences on settlement/restatement of all monetary items and mark to market valuation of outstanding forward contracts on account of firm commitments) Rs. 24.41 crores (2013-14 - Rs. 19.40 crores).

(e) Other expenses include Rs.82.35 crores spent towards various schemes of Corporate Social Responsibility as prescribed under section 135 of the Companies Act, 2013.

6) DEFINED BENEFIT PLANS

Gratuity is funded through investment mostly with an insurance service provider and partly through direct investment under Hind Lever Gratuity Fund.

Pension for most employees are managed through a trust, investments with an insurance service provider and for some employees investments are managed through Company managed trust.

Post-retirement medical benefits are managed through investment made under Company managed trust.

Provident Fund for most of the employees are managed through trust investments and for some employees through government administered fund.

The Guidance Note on Implementing AS 15, ''Employee Benefits'' issued by the Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India states that Provident Funds set up by employers that guarantee a specified rate of return and which require interest shortfall to be met by the employer would be defined benefit plans in accordance with the requirements of paragraph 26(b) of AS 15. The year 2012-13 was the first year in which the actuary had given the detailed disclosures in the actuarial valuation report, in view of the issuance of the Guidance Note by the Institute of Actuaries of India. Accordingly the compliance with the disclosure requirements of paragraph 120(n) of AS 15: Employee Benefits in respect of Provident Fund has been done prospectively from 2012-13.

7) EMPLOYEE STOCK OPTION PLAN

The members of the Company had approved ''2001 HLL Stock Option Plan'' at the Annual General Meeting held on 22nd June, 2001. The plan envisaged grant of share options to eligible employees at market price as defined in SEBI (Employee Stock Option Scheme And Employee Stock Purchase Scheme) Guidelines, 1999.

This plan was amended and revised vide ''2006 HLL Performance Share Scheme'' at the Annual General Meeting held on 29th May, 2006. This scheme provided for conditional grant of Performance Shares at nominal value to eligible management employees as determined by the Compensation Committee of the Board of Directors from time to time, at the end of 3-year performance period. The performance measures under this scheme include group underlying sales growth and free cash flow. The scheme also provided for Par'' Awards for the managers at different work levels.

The 2006 scheme was further amended and revised vide ''2012 HUL Performance Share Scheme'' at the Annual General Meeting held on 23rd July, 2012. This scheme provided for conditional grant of Performance Shares at nominal value to eligible management employees as determined by the Nomination and Remuneration Committee of the Board of Directors from time to time, at the end of 3-year performance period. The performance measures under this scheme include group underlying sales growth, core operating margin improvement and operating cash flow.

The number of shares allocated for allotment under the 2006 and 2012 Performance Share Schemes is 2,00,00,000 (two crores) equity shares of Re. 1/- each. The schemes are monitored and supervised by the Nomination and Remuneration Committee of the Board of Directors in compliance with the provisions of SEBI (Employee Stock Option Scheme And Employee Stock Purchase Scheme) Guidelines, 1999 and amendments thereof from time to time.

The risk free interest rates are determined based on the zero-coupon sovereign bond yields with maturity equal to the expected term of the option. Volatility calculation is based on historical stock prices using standard deviation of daily change in stock price. The historical period is taken into account to match the expected life of the option. Dividend yield has been calculated taking into account expected rate of dividend on equity share price as on grant date.

8) The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.

9) PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped/restated wherever necessary to conform with this year''s classification. Previous year''s financial statements were audited by a firm of Chartered Accountants other than B S R & Co. LLP.

10) RELATED PARTY DISCLOSURES

A. Enterprises where control exists

(i) Holding Company : Unilever PLC

(ii) Subsidiaries!

(Extent of holding)

Aquagel Chemicals Private Limited (100%) (Amalgamated with Lakme Lever Private Limited with effect from April 01, 2014) [Refer Note 14(i)]

Brooke Bond Real Estates Private Limited (100%) (upto March 23, 2015)

Daverashola Estates Private Limited (100%)

Hindlever Trust Limited (100%)

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%)

Bhavishya Alliance Child Nutrition Initiatives (100%) (with effect from March 12, 2015) (Section 8 company) Hindustan Unilever Foundation (76%) (Section 8 company)

(iii) Trust

: Hindustan Unilever Limited Securitisation of Retirement

Benefit Trust (100% control)

B. Other Related Parties with whom the Company had transactions during the year (i) 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

Unilever Europe Business Center BV

Lipton Soft Drinks Ireland

Mascolo Brothers Limited

OOO Unilever Russia

P.T. Unilever Indonesia, Tbk.

Tigi Holdings Limited

Tigi Linea International B.V.

UL Research & Development Vlaard

Unilever (Malaysia) Holdings Sdn Bhd

Unilever ASCC AG

Unilever Asia Private Limited

Unilever Australia Limited

Unilever Bangladesh Limited

Unilever Brasil Limited

Unilever Business and Marketing Support AG

Unilever Canada-Food Solutions

Unilever De Argentina SA

Unilever Employment Services B.V.

Unilever Europe IT Services

Unilever Gulf Free Zone Establishment, Arabia

Unilever Industries Private Limited

Unilever Italy Holdings Srl

Unilever Japan

Unilever Lipton Ceylon Limited Unilever N.V.

Unilever Overseas Holdings AG Unilever Overseas Holdings BV Unilever Pakistan Limited Unilever Philippines , Inc.

Unilever Research and Development Vlaardingen B.V. Unilever Sanayi ve Ticaret Turk A.S.

Unilever Singapore PTE LTD Unilever SNG

Unilever South Africa (Pty) Limited Unilever South Central Europe S.R.L Unilever Sri Lanka Limited

Unilever Supply Chain Company AG

Unilever Thai Services Limited Unilever Thai Trading Limited Unilever U.K. Central Resources Limited Unilever UK & CN Holdings Limited Unilever United States, Inc.

Unilever Ventures India Advisory Private Ltd

Unilever Zimbabwe (Pvt) Limited

Walls (China) Co. Limited

Unilever Kenya Ltd

Unilever Andina Ecuador

Unilever Market Development (pty) Limited

USUP Spolka z ograniczona odpo

Lever International Marine Supplies (LIMS) BV

Toni&Guy Product Limited

Unilever Belgium BVBA

Unilever Technology Ventures Advisory Company LLC Unilever Iran Unilever UK Limited

(ii) Joint Ventures : Kimberly Clark Lever Private Limited

(iii) Associates

: Aquagel Chemicals (Bhavnagar) Pvt. Ltd.

Hi Tech Surfactants Pvt Ltd

Comfund Financial Services India Limited

Hindustan Field Services Private Limited (up to March 10, 2015)

(iv) Key Management Personnel

: BP Biddappa Dev Bajpai Geetu Verma Hemant Bakshi

Manish Tiwary (up to November 30, 2014)

Nitin Paranjpe (up to October 09, 2013)

PB Balaji (with effect from July 01, 2014) Pradeep Banerjee

Priya Nair (with effect from October 01, 2014) Punit Misra (with effect from November 01, 2014) Sanjiv Mehta

Samir Singh (with effect from October 01, 2014) Sridhar Ramamurthy (up to June 30, 2014)

(v) Other (Non Executive Chairman) : Harish Manwani (upto December 31, 2014)

(vi) Employees'' Benefit Plans where there is significant influence : Hind Lever Gratuity Fund

The Hind Lever Pension Fund

The Union Provident Fund


Mar 31, 2013

1) COMPANY INFORMATION

Hindustan Unilever Limited (the ''company'') 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.

2) DUES TO MICRO AND SMALL ENTERPRISES

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3) EMPLOYEE STOCK OPTION PLAN

The members of the Company had approved ''2001 HLL Stock Option Plan'' at the Annual General Meeting held on 22nd June, 2001. The plan envisaged grant of share options to eligible employees at market price as defined in SEBI (Employee Stock Option Scheme And Employee Stock Purchase Scheme) Guidelines, 1999.

This plan was amended and revised vide ''2006 HLL Performance Share Scheme'' at the Annual General Meeting held on 29th May, 2006. This scheme provided for conditional grant of Performance Shares at nominal value to eligible management employees as determined by the Compensation Committee of the Board of Directors from time to time, at the end of 3-year performance period. The performance measures under this scheme include group underlying sales growth and free cash flow. The scheme also provided for ''Par'' Awards for the managers at different work levels.

The 2006 scheme was further amended and revised vide ''2012 HUL Performance Share Scheme'' at the Annual General Meeting held on 23rd July, 2012. This scheme provided for conditional grant of Performance Shares at nominal value to eligible management employees as determined by the Nomination and Remuneration Committee of the Board of Directors from time to time, at the end of 3-year performance period. The performance measures under this scheme include group underlying sales growth, core operating margin improvement and operating cash flow.

The number of shares allocated for allotment under the 2006 and 2012 Performance Share Schemes is 2,00,00,000 (two crores) equity shares of Re. 1/- each. The schemes are monitored and supervised by the Nomination and Remuneration Committee of the Board of Directors in compliance with the provisions of SEBI (Employee Stock Option Scheme And Employee Stock Purchase Scheme) Guidelines, 1999 and amendments thereof from time to time.

4) PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped/ restated wherever necessary to conform with this year''s classification.

5) RELATED PARTY DISCLOSURES

A. Enterprises where control exists

(i) Holding Company : Unilever PLC

(ii) Subsidiaries

(Extent of holding)

: Brooke Bond Real Estates Private Limited (100%) Daverashola Estates Private Limited (100%) Hindlever Trust Limited (100%)

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%)

Hindustan Unilever Foundation (76%) (with effect from December, 2012)

(iii) Trust : Hindustan Unilever Limited Securitisation of Retirement Benefit Trust

(100% control) (from October, 2012)

B. Other Related Parties with whom the company had transactions during the year

(i) Fellow Subsidiaries : Besan-Besin Sanayi ve Ticaret A.S.

Brooke Bond Assam Estates Limited Brooke Bond Group Limited Brooke Bond South India Estates Ltd.

Conopco, Inc.

Corporativo Unilever de Mexico, S. de R.L. de C.V. (merged)

Digital Securities Private Limited Glidat Strauss Ltd.

Unilever Chile SA

Lipton Soft Drinks Ireland Limited

Mascolo Brothers Limited

OOO Unilever Rus

P.T. Unilever Indonesia, Tbk.

Tigi Linea International B.V.

Unilever - Zimbabwe (Pvt) Limited Unilever (China) Investing Company Unilever (China) Ltd.

Unilever (Malaysia) Holdings Sdn Bhd Unilever ASCC AG Unilever Asia Private Limited Unilever Australia Ltd.

Unilever Bangladesh Ltd Unilever Brasil Limited Unilever Canada Inc Unilever Cote d''Ivoire Unilever De Argentina SA

Unilever Deutschland Produktions GmbH & Co. OHG Unilever Employment Services B.V.

Unilever Gulf Free Zone Establishment, Arabia Unilever Industries Pvt. Ltd.

Unilever Iran (Private Joint Stock Company)

Unilever Italy Holdings Srl Unilever Japan Unilever Lipton Ceylon Ltd.

Unilever Maghreb Export SA Unilever Mashreq International Company Unilever N.V.

Unilever Nigeria Plc Unilever Overseas Holdings AG

Unilever Pakistan Limited

UNILEVER PHILIPPINES, INC Unilever Research and Development Vlaardingen B.V Unilever Research Laboratory, Colworth House Unilever Sanayi ve Ticaret Turk A.S.

Unilever SNG

Unilever South Africa (Pty) Limited Unilever South Central Europe S.R.L.

Unilever Sri Lanka Limited Unilever Supply Chain Company AG Unilever Thai Services Limited Unilever Thai Trading Limited Unilever U.K. Central Resources Limited Unilever UK & CN Holdings Limited Unilever United States, Inc.

Unilever Ventures India Advisory Private Ltd Unilever Vietnam International Company Limited Lever Brothers, Port Sunlight, Limited

(ii) Joint Ventures : Kimberly Clark Lever Private Limited

(iii) Key Management Personnel : Dev Bajpai

Geetu Verma (from November, 2011)

Harish Manwani Hemant Bakshi

Leena Nair (upto December 2012)

Manish Tiwary (from February, 2012)

Nitin Paranjpe Pradeep Banerjee Sridhar Ramamurthy Shrijeet Mishra (upto July, 2011)

BP Biddappa (from February 2013)

Gopal Vittal (upto January, 2012)

(iv) Employees'' Benefit Plans where there is

significant influence

: Hind Lever Gratuity Fund The Hind Lever Pension Fund The Union Provident Fund

6. Business Segments

The Company has considered business segments as the primary segments for disclosure. The products included in each of the reported domestic business segments are as follows:

a) Soaps and Detergents include soaps, detergent bars, detergent powders, detergent liquids, scourers, etc.

b) Personal Products include products in the categories of Oral Care, Skin Care (excluding soaps), Hair Care, Deodorants, Talcum Powder, Colour Cosmetics, Ayush services, etc.

c) Beverages include tea and coffee.

d) Packaged foods include Branded Staples (Atta, Salt, Bread, etc.), Culinary Products (tomato based products, fruit based products, soups, etc.) and Frozen deserts

e) Others include Exports, Chemicals, Water business, infant Care Products etc.

Segment Revenue relating to each of the above domestic business segments includes Income from Services provided to group companies, where applicable

The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the internal organisation and management structure, and

d) the internal financial reporting systems

7. Geographical Segments

The geographical segments considered for disclosure are as follows :

a) Sales within India includes sales to customers located within India.

b) Sales outside India includes sales to customers located outside India.

c) The carrying amount of segment assets in India and Outside India is based on geographical location of assets.

8. Previous year''s figures have been regrouped wherever necessary to conform with this year''s classification.


Mar 31, 2012

1) COMPANY INFORMATION

Hindustan Unilever Limited (the 'Company') 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. 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. The Company has demerged its FMCG exports business to Unilever India Exports Limited, its wholly owned subsidiary effective 1 April 2011 (Refer note 52).

a) 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 amount, in proportion to their shareholding.

b) Shares reserved for issue under options

Refer note 48 for details of shares to be issued under the Employee Stock Option Plan

Note:

During the previous year, pursuant to the shareholders' approval for buy back of equity shares under section 77A of the Companies Act, 1956, the Company has bought back 22,883,204 equity shares through open market transactions for an aggregate amount of Rs. 625.30 crores, by utilizing Share Premium and General Reserve to the extent of Rs. 82.16 Crores and 540.85 Crores respectively. Capital redemption reserve has been created out of general reserve for Rs 2.29 crores being the nominal value of shares bought back in terms of section 77AA of the Companies Act, 1956.

Notes :

(a) Buildings include Rs. 0.02crores (2010-11 - Rs.0.02 crores) being the value of shares in co-operative housing societies.

(b) The title deeds of Freehold Land aggregating Rs. 7.77 crores (2010-11 - Rs. 8.77 crores), acquired on transfer of business/undertakings are in the process of being transferred in the name of the Company.

(c) Transfers include ) Assets held for sale shown under 'Other Current Assets' (Refer note 22) : Gross block Rs.11.27 crores, Accumulated depreciation Rs.1.63 crores and Net block Rs. 9.64 crores (2010-11 - Rs. 3.58 crores) and ii) Investment Property shown under 'Non-Current Investments' (Refer note 14): Gross block Rs. 27.62 crores, Accumulated depreciation Rs.6.36 crores and Net block Rs. 21.26 crores.

(d) Additions in capital expenditure of Rs.0.40 crores (2010-11 - Rs. 0.77 crores) and Rs.1.48 crores (2010-11 - Rs. 1.07 crores) incurred at Company's inhouse R&D Facilities at Mumbai and Bangalore respectively are eligible for weighted deduction under section 35 (2AB) of the Income Tax Act, 1961

(e) Impairment charge of Rs. 7.20 crores (2010-11 - Rs. 9.37 crores) on plant and equipment has been included in Miscellaneous Expenses in the Statement of Profit and Loss.

(f) Refer note 52 relating to demerger.

1) CONTINGENT LIABILITIES

As at As at 31st March, 2012 31st March, 2011

Claims against the company not acknow ledged as debts.

Income-tax matters 499.82 490.61 Sales tax matters - Rs. 60.28 Crores (2010-11 - Rs. 83.34 Crores) net of tax 89.24 124.89 A Excise and Customs duty matters - Rs 58.52 Crores (2010-11 - Rs. 51.64 Crores) 86.62 77.39 net of tax

Other matters including claims related to employees/ex-employees, property 67.99 56.07 related demands, etc - Rs. 45.93 Crores (2010-11 - Rs. 37.41 Crores) 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 judgments / decisions pending with various forums / authorities

c) The Company's significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, go down etc.) and computers. These leasing arrangements which are not non-cancellable range between 11 months and 10 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent in the profit and loss account (Refer Note 34).

The company has also given certain land and building on operating lease to a third party. The lease arrangement is for a period of 5 years, including a non-cancellable term of 3 years. The rent income on such lease is included in miscellaneous income (Refer note 27)

Notes :

a) Branded staple foods includes breads, wheat flour, iodized salt and rice in consumer packs

b) Specialty Chemicals comprises Glycerine and Fine Chemicals

c) Others includes Coffee, Scourers, Marine products, Agri commodities, Water, Ayush services etc.

The Guidance Note on Implementing AS 15, 'Employee Benefits' issued by the Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India states that Provident Funds set up by employers that guarantee a specified rate of return and which require interest shortfall to be met by the employer would be defined benefit plans in accordance with the requirements of paragraph 26(b) of AS 15. Pursuant to the Guidance Note, the liability in respect of the shortfall of interest earnings of Fund is Nil determined on the basis of an actuarial valuation carried out as at 31st March, 2012. As per the actuarial valuation report, the interest shortfall liability being "Other Long Term Employee Benefits", detailed disclosures are not required.

2) DEMERGER OF FMCG EXPORTS BUSINESS

In order to fully exploit the opportunity in exports market and to provide necessary focus, flexibility and speed to the business, the Board of Directors approved a Scheme of Arrangement (the 'Scheme') for transfer of the FMCG Exports Business Division (the 'demerged business undertaking') of the Company into its wholly owned subsidiary Unilever India Exports Limited (UIEL') on 9th May, 2011 which was subsequently approved by the shareholders on 28th July, 2011.The Hon'ble High Court of Bombay sanctioned the Scheme with the appointed date of 1st April, 2011 vide an order dated 18th November, 2011. The Scheme became effective from 1st January, 2012 (the 'effective date') upon filing of the said order with the Registrar of Companies of Mumbai. In accordance with the Scheme, the above transfer of demerged business undertaking has been accounted by the company by recording the transfer of the relevant assets and liabilities of the demerged business undertaking at their book values as of the appointed date and the corresponding consideration received aggregating to Rs 70.12 Crores in the form of investment in the shares issued by UIEL (465,000 shares of Rs 10/- each issued at a premium of Rs 1,498/- per share) resulting in no gain or loss to the company. Accordingly, the financial results of the demerged business undertaking do not form part of the audited financial results of the company for the year ended 31st March, 2012 and hence the same are not comparable with the financial results for the year ended 31st March, 2011.

3) PREVIOUS YEAR FIGURES

The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

4) SEGMENT INFORMATION (Contd.)

Information about Secondary Business Segments NOTES : 1. Business Segments

The Company has considered business segment as the primary segment for disclosure. The products included in each of the reported domestic business segments are as follows:

a) Soaps and Detergents include soaps, detergent bars, detergent powders, detergent liquids, scourers, etc.

b) Personal Products include products in the categories of Oral Care, Skin Care (excluding soaps), Hair Care, Deodorants, Talcum Powder, Colour Cosmetics, Ayush services, etc.

c) Beverages include tea and coffee.

d) Packaged foods include Branded Staples (Atta, Salt, Bread, etc.), Culinary Products (tomato based products, fruit based products, soups, etc.), Ice Creams and Frozen deserts

e) Others include Exports, Chemicals, Water business, etc.

Segment Revenue relating to each of the above domestic business segments includes Income from Services provided to group companies, where applicable

The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the internal organization and management structure, and

d) the internal financial reporting systems

2. Geographical Segments

The geographical segments considered for disclosure are as follows :

a) Sales within India includes sales to customers located within India.

b) Sales outside India includes sales to customers located outside India.

c) The carrying amount of segment assets in India and Outside India is based on geographical location of assets.

5. Previous year's figures have been regrouped wherever necessary to conform to this year's classification.


Mar 31, 2011

Rs. Crores

As at As at 31st March, 2011 31st March, 2010

1 CONTINGENT LIABILITIES

Claims made against the Company not acknowledged as debts Income-tax matters 490.61 295.29

Sales tax matters-gross Rs. 124.89 Crores (2009-10: Rs. 178.25 Crores) net of tax 83.34 119.04

Excise and Customs duty matters-gross Rs. 77.39 Crores (2009-10: Rs. 67.69 51.64 45.20 Crores) net of tax

Other matters-gross Rs.56.07 Crores (2009-10: Rs. 13.42 Crores) net of tax 37.41 8.96

Note: Future cash outflows in respect of the above are determinable only on receipt of judgements/decisions pending with various forums/ authorities.

2 MICRO AND SMALL SCALE BUSINESS ENTITIES

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3 Previous years figures have been regrouped wherever necessary to conform to this years classification.


Mar 31, 2010

Rs. Crores

As at As at 31st March, 2010 31 st March, 2009

1 CONTINGENT LIABILITIES

Claims made against the Company not acknowledged as debts

Income-tax matters 295.29 274.46

Sales tax matters-gross Rs. 178.25 Crores (2009- Rs. 202.91 Crores) net of tax 119.04 133.94

Excise and Customs duty matters-gross Rs. 67.69 Crores (2009-Rs. 86.33 Crores) net of tax 45.20 56.99

Other matters-gross Rs. 13.42 Crores (2009 - Rs. 12.61 Crores) net of tax 8.96 8.32

Note: Future cash outflows in respect of (a) above are determinable only on receipt of judgements/decisions pending with various forums/authorities.

2 MICROAND SMALL SCALE BUSINESS ENTITIES

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days asat31stMarch, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3 Previous years figures have been regrouped wherever necessary to conform to this years classification.

4 Previous years figures have been regrouped wherever necessary to conform to this years classification.

NOTES TO THE CASH FLOWSTATEMENTFORTHEYEAR ENDED 31ST MARCH, 2010

1. The cash flow statement has been prepared in accordance with the requirements of Accounting Standard - 3 "Cash Flow Statement" notified under section 211 (3C)oftheCompaniesAct, 1956.

2. Figures in brackets indicate Cash Outgo.

3. The previous years figures have been regrouped / restated wherever necessary to conform to this periods classification.

4. In view of note 17.1 to the profit and loss account, the current years figures are not comparable with that of the previous periods figures.

 
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