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Hindustan Unilever
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« Mar 13
Auditor's Report (Hindustan Unilever) Year End : Mar '14
1.  We have audited the accompanying financial statements of Hindustan
 Unilever Limited (the Company), which comprise the Balance Sheet as
 at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
 Statement for the year then ended, and a summary of significant
 accounting policies and other explanatory information, which we have
 signed under reference to this report.
 
 MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
 
 2.  The Company''s Management is responsible for the preparation of
 these financial statements that give a true and fair view of the
 financial position, financial performance and cash flows of the Company
 in accordance with the Accounting Standards notified under ''the
 Companies Act, 1956'' of India (the Act) read with the General
 Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate
 Affairs in respect of Section 133 of the Companies Act, 2013.  This
 responsibility includes the design, implementation and maintenance of
 internal control relevant to the preparation and presentation of the
 financial statements that give a true and fair view and are free from
 material misstatement, whether due to fraud or error.
 
 AUDITORS'' RESPONSIBILITY
 
 3.  Our responsibility is to express an opinion on these financial
 statements based on our audit. We conducted our audit in accordance
 with the Standards on Auditing and other applicable authoritative
 pronouncements issued by the Institute of Chartered Accountants of
 India. Those Standards require that we comply with ethical requirements
 and plan and perform the audit to obtain reasonable assurance about
 whether the financial statements are free from material misstatement.
 
 4.  An audit involves performing procedures to obtain audit evidence,
 about the amounts and disclosures in the financial statements. The
 procedures selected depend on the auditors'' judgment, including the
 assessment of the risks of material misstatement of the financial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditors consider internal control relevant to the
 Company''s preparation and fair presentation of the financial statements
 in order to design audit procedures that are appropriate in the
 circumstances, but not for the purpose of expressing an opinion on the
 effectiveness of the entity''s internal control.  An audit also includes
 evaluating the appropriateness of accounting policies used and the
 reasonableness of the accounting estimates made by Management, as well
 as evaluating the overall presentation of the financial statements.
 
 5.  We believe that the audit evidence we have obtained is sufficient
 and appropriate to provide a basis for our audit opinion.
 
 OPINION
 
 6.  In our opinion, and to the best of our information and according to
 the explanations given to us, the accompanying financial statements
 give the information required by the Act in the manner so required and
 give a true and fair view in conformity with the accounting principles
 generally accepted in India:
 
 (a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31, 20U;
 
 (b) in the case of the Statement of Profit and Loss, of the profit for
 the year ended on that date; and
 
 (c) in the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
 
 7.  As required by ''the Companies (Auditor''s Report) Order, 2003'', as
 amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
 issued by the Central Government of India in terms of sub-section (4A)
 of section 227 of the Act (hereinafter referred to as the Order), and
 on the basis of such checks of the books and records of the Company as
 we considered appropriate and according to the information and
 explanations given to us, we give in the Annexure a statement on the
 matters specified in paragraphs 4 and 5 of the Order.
 
 8.  As required by section 227(3) of the Act, we report that:
 
 (a) We have obtained all the information and explanations which, to the
 best of our knowledge and belief, were necessary for the purpose of our
 audit;
 
 (b) In our opinion, proper books of account as required by law have
 been kept by the Company so far as appears from our examination of
 those books;
 
 (c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 (d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
 and Cash Flow Statement dealt with by this report comply with the
 Accounting Standards notified under the Act read with the General
 Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate
 Affairs in respect of Section 133 of the Companies Act, 2013;
 
 (e) On the basis of written representations received from the directors
 as on March 31, 2014, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2014, from being
 appointed as a director in terms of clause (g) of sub-section (1) of
 section 274 of the Act.
 
 1.  (a) The Company is maintaining proper records showing full
 particulars, including quantitative details and situation, of fixed
 assets.
 
 (b) The fixed assets are physically verified by the Management
 according to a phased programme designed to cover all the items over a
 period of two years which, in our opinion, is reasonable having regard
 to the size of the Company and the nature of its assets.  Pursuant to
 the programme, a portion of the fixed assets has been physically
 verified by the Management during the year and no material
 discrepancies have been noticed on such verification.
 
 (c) In our opinion, and according to the information and explanations
 given to us, a substantial part of fixed assets has not been disposed
 off by the Company during the year.
 
 2.  (a) The inventory (excluding stocks with third parties) has been
 physically verified by the Management during the year. In respect of
 inventory lying with third parties, these have substantially been
 confirmed by them. In our opinion, the frequency of verification is
 reasonable.
 
 (b) In our opinion, the procedures of physical verification of
 inventory followed by the Management are reasonable and adequate in
 relation to the size of the Company and the nature of its business.
 
 (c) On the basis of our examination of the inventory records, in our
 opinion, the Company is maintaining proper records of inventory. The
 discrepancies noticed on physical verification of inventory as compared
 to book records were not material.
 
 3.  The Company has neither granted nor taken any loans, secured or
 unsecured, to/ from companies, firms or other parties covered in the
 register maintained under section 301 of the Act. Therefore, the
 provisions of Clause 4(iii)[(b), (c), (d), (f) and (g)] of the said
 Order are not applicable to the Company.
 
 4.  In our opinion, and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the Company and the nature of its business for the
 purchase of inventory and fixed assets and for the sale of goods and
 services.  Further, on the basis of our examination of the books and
 records of the Company, and according to the information and
 explanations given to us, we have neither come across, nor have been
 informed of, any continuing failure to correct major weaknesses in the
 aforesaid internal control system.
 
 5.  (a) According to the information and explanations given to us, we
 are of the opinion that the particulars of all contracts or
 arrangements that need to be entered into the register maintained under
 section 301 of the Companies Act, 1956 have been so entered.
 
 (b) In our opinion, and according to the information and explanations
 given to us, the transactions made in pursuance of such contracts or
 arrangements and exceeding the value of Rupees Five Lakhs in respect of
 any party during the year have been made at prices which are reasonable
 having regard to the prevailing market prices at the relevant time.
 
 6.  The Company has not accepted any deposits from the public within
 the meaning of sections 58A and 58AA of the Act and the rules framed
 there under.
 
 7.  In our opinion, the Company has an internal audit system
 commensurate with its size and the nature of its business.
 
 8.  We have broadly reviewed the books of account maintained by the
 Company in respect of products where, pursuant to the rules made by the
 Central Government of India, the maintenance of cost records has been
 prescribed under clause (d) of sub-section (1) of section 209 of the
 Act, and are of the opinion that, prima facie, the prescribed accounts
 and records have been made and maintained. We have not, however, made a
 detailed examination of the records with a view to determine whether
 they are accurate or complete.
 
 9.  (a) According to the information and explanations given to us and
 the records of the Company examined by us, in our opinion, the Company
 is generally regular in depositing undisputed statutory dues in respect
 of provident fund, employees'' state insurance, sales tax, service tax,
 customs duty, excise duty and tax deducted at source, and is regular in
 depositing undisputed statutory dues, including investor education and
 protection fund, income tax, wealth tax, and other material statutory
 dues, as applicable, with the appropriate authorities.
 
 (b) According to the information and explanations given to us and the
 records of the Company examined by us, there are no dues of wealth tax
 which have not been deposited on account of any dispute. The
 particulars of dues of income tax, sales tax, service tax, customs duty
 and excise duty as at March 31, 2014 which have not been deposited on
 account of a dispute, are as follows:
 
 
 Name of the                          Period to which  
                                                  the
 statute       Nature of dues Amount  amount relates   Forum where the
                              (Rs.                     dispute is 
                             crores)                   pending
 
 The Central 
 Excise Act,   Excise duty 
               including      140.31  1982,1985-2014   Appellate 
                                                       Authority - up
                                                       to 
                                                       Commissioner''s  
                                                       level
               interest and
               penalty, as     46.36  I981, 1992-2010  Customs, Excise 
                                                       and Service Tax
                                                       Appellate
               applicable
                                5.50  1982-1983 1999   Tribunals of
                                                       various states
                                      2003-2012        High Courts of 
                                                       Andhra Pradesh
                                                       and Bombay
                                8.48  1999, 2007-2008  Supreme Court
 
 Central 
 Sales Tax 
 Act           Sales tax 
               including       85.28  1985-2014        Appellate
                                                       Authority - up
                                                       to Commissioner''s
                                                       level
 and Local 
 Sales Tax     interest and 
               penalty, as
 Acts 
 (including 
 works         applicable     15.13   1984 1992-2010   Sales Tax
                                                       Appellate 
                                                       Tribunals of
                                                       various states
 
                              36.02  1977  1983-1989   High Courts of
                                                       various states 
 
                                     1991-2013         Supreme Court 
 
                               3.00  1985-1990, 
                                     1995-1997,
 
                                     2000-2008
 
 Customs 
 Act, 1962     Customs duty
               including       1.67  1995,2011-2014    Appellate
                                                       Authority - up 
                                                       to Commissio
                                                       ner''s level
               interest and
               penalty, as
               applicable
 
 Income-tax 
 Act, 1961     Income tax 
               including      88.82  1979-1980,1991,   Appellate 
                                                       Authority - up
                                                       to Commissio
                                                       ner''s level
               interest and 
               penalty, as             2010-2014
               applicable      0.20    1982-1983       Income Tax
                                                       Appellate
                                                       Tribunal, 
                                                       Mumbai
 
                               0.06    1963-1964,
                                       1982-1983       Bombav High 
                                                       Court 
 
 Service Tax 
 (Finance      Service tax 
               including      82.20    2005-2014       Appellate 
                                                       Authority - up
                                                       to
                                                       Commissioner''s
                                                       level 
 Act, 1994)    interest and
               penalty, as
               applicable
 
 
 
 10.  The Company has no accumulated losses as at the end of the
 financial year and it has not incurred any cash losses in the financial
 year ended on that date or in the immediately preceding financial year.
 
 11.  As the Company does not have any borrowings from any financial
 institution or bank nor has it issued any debentures as at the balance
 sheet date, the provisions of Clause 4(xi) of the Order are not
 applicable to the Company.
 
 12.  The Company has not granted any loans and advances on the basis of
 security byway of pledge of shares, debentures and other securities.
 Therefore, the provisions of Clause 4(xii) of the Order are not
 applicable to the Company.
 
 13.  As the provisions of any special statute applicable to chit
 fund/nidhi/mutual benefit fund/societies are not applicable to the
 Company, the provisions of Clause 4(xiii) of the Order are not
 applicable to the Company.
 
 14.  In our opinion, the Company is not dealing in or trading in
 shares, securities, debentures and other investments.  Accordingly, the
 provisions of Clause 4(xiv) of the Order are not applicable to the
 Company.
 
 15.  In our opinion, and according to the information and explanations
 given to us, the Company has not given any guarantee for loans taken by
 others from banks or financial institutions during the year.
 Accordingly, the provisions of Clause 4(xv) of the Order are not
 applicable to the Company.
 
 16.  The Company has not raised any term loans. Accordingly, the
 provisions of Clause 4(xvi) of the Order are not applicable to the
 Company.
 
 17.  The Company has not raised any loans on short term basis.
 Accordingly, the provisions of Clause 4(xvii) of the Order are not
 applicable to the Company.
 
 18.  The Company has not made any preferential allotment of shares to
 parties and companies covered in the register maintained under section
 301 of the Act during the year.  Accordingly, the provisions of Clause
 4(xviii) of the Order are not applicable to the Company.
 
 19.  The Company has not issued any debentures during the year and does
 not have any debentures outstanding as at the beginning of the year and
 at the year end. Accordingly, the provisions of Clause 4(xix) of the
 Order are not applicable to the Company.
 
 20.  The Company has not raised any money by public issues during the
 year. Accordingly, the provisions of Clause 4(xx) of the Order are not
 applicable to the Company.
 
 21.  During the course of our examination of the books and records of
 the Company, carried out in accordance with the generally accepted
 auditing practices in India, and according to the information and
 explanations given to us, we have neither come across any instance of
 material fraud on or by the Company, noticed or reported during the
 year, nor have we been informed of any such case by the Management.
 
 
 
                                 For Lovelock & Lewes
 
                                 Firm Registration Number: 301056E 
  
                                 Chartered Accountants
 
 
 
                                 Pradip Kanakia
 
                                 Partner 
 
 Mumbai: April 28, 2014          Membership Number: 39985
Source : Dion Global Solutions Limited
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