Hul Accounting

Topics: Balance sheet, Financial statements, Generally Accepted Accounting Principles Pages: 19 (5791 words) Published: December 10, 2012
Table of Contents

Introduction to HUL2
Accounting Policies3
Fixed Assets6
Reserves and Surplus9
Secured and Unsecured Loans10
Income Statement11
Balance Sheet12
Cash flow statement13
Notes to Accounts13
Directors’ Report14
Corporate Governance15
Auditor’s Report16

The objectives of studying the Annual Report of HINDUSTAN UNILEVER are the following – a) To study and understand the Balance sheet, outflow and inflow of cash for two accounting periods. b) To develop a detailed report after analysis.

c) To understand different frame works.
d) To study different concepts involved in preparation of Annual Report. Introduction to HUL
Hindustan Unilever Limited is India’s largest Fast Moving Consumer Goods Company. HUL meets the needs of millions of Indians, right from the morning cup of tea to brushing at bedtime. HUL touches lives of more than 700 million Indians. HUL is subsidiary of Unilever. Unilever has about 52% share holding in HUL. Hindustan Unilever distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e. nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out of three Indians use the company’s products and HUL products have the largest consumer reach being available in over 80 per cent of consumer homes across India. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007. * HUL was formed in 1933 as Lever Brothers India Limited. * In 1956 it became Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspathi Mfg. Co. Ltd. and United Traders Ltd. * It is Headquartered in Mumbai, India

* Employee strength of 15,000
* Harish Manwani is the Chairman
* Nitin Paranjpe is the CEO and the Managing Director.
HUL brands include Kwality Wall’s ice cream, lifebuoy, Lux, Breeze, Rexona, Hamam, Moti soaps, Puriet water purifier, Lipton Brooke Bond tea, Bru Coffee, Pepsodent and CloseUp toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and Atta, Pond's talcs and creams, Vaseline lotions, Fair & Lovely creams, Lakmé beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach and Domex disinfectant. Rexona, Modern Bread and Axe deosprays. Accounting Policies

Accounting policies are the Principles, rules and procedures selected, and consistently followed, by the management of an organization (the accounting entity) in preparing and reporting the financial statements are called as accounting policies. Accounting policies deal specifically with matters such as consolidation of accounts, depreciation methods, goodwill, inventory pricing, and research and development costs. These policies must be disclosed in the annual financial statements. Basis for preparation of accounts-

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India and the Applicable Accounting Standards notified u/s 211 (3C) of the Companies Act, 1956.

Revenue Recognition-

Sales are recognised when goods are supplied and are recorded net of trade discounts, rebates, sales taxes and excise duties (on goods manufactured and outsourced) but include, where applicable, export incentives such as duty drawbacks and premiums on sale of import licences. It does not include inter-divisional transfers. Income from Property Development Activity is recognised in terms of...
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