ACCOUNTING II

BY-

MUNICIPAL CORPORATION OF CHANDIGARH

Finance and Accounts Department

Department's Hierarchy

Department's Working

Financial Position

Other Departments

Department Hierarchy

The Finance & Accounts Department is under the direct control of Sh. Sunil Bhatia, PCS, Additional Commissioner-I and is headed by Chief Accounts Officer. One AC(F&A) one AO(P&PF) and three Section Officers work in this Department

Additional Commisioner-I Chief Accounts Officer Sh. Khagesh Bhandari Section Officer (Accounts-I) Sh.Parbhakar Sharma Section Officer (Accounts-II) Sh. Subhash Sharma AC(F&A) (Accounts-III)

Accounts Officer (Pension and Provident Fund)

Department's Working

Chief Accounts Officer, M.C.

Present Incumbent Location of Office Telephone No. Responsibilities

CAO
Municipal Corporation, New Deluxe Building, Sector 17, Chandigarh. 5021503

1. Financial Management and Control. 2. Budget Planning and control 3. Release of Funds to all the offices of the Corporation. 4. Maintenance of the Cash Book of the Head Office. 5. Drawing and disbursement of Pension and Provident Fund.

Section Officer (Accounts-I)

Location of Office Telephone No. Responsibilities

Municipal Corporation, New Deluxe Building, Sector 17, Chandigarh. 5021502

1. All the works relaiting to Budget. 2. Loans & Advance i.e House Building, Conveyance, Advance, conveyance, Advance, etc. 3. Financial management and the maintenance of accounts of SJSRY Scheme 4. Sanction of Medical Bills of Engineering Wing

Section Officer (Accounts-II)

Location of Office Telephone No. Responsibilities

Municipal Corporation, New Deluxe Building, Sector 17, Chandigarh. 5021515

1. To Supervise disbursement of Salaries, Allowances, Honorarium and other payments to the employees and Councillors. 2. Examination of Proposal of Caretaker regarding financial matters, Sanction etc. 3. Release of funds against the requirements of the Pre-Audited bills to all the D.D.Os of the Corporation. 4. Financial Management such as investment of funds on Receipt of Grant-in-Aid and Reconciliation of Interest with Banks of all Saving Banks Accounts/Suvida Accounts, Maintenance of Investment Register etc. 5. To have control over the chest book of the cashier, challans and cash chest. Cashier is mainly responsible for disbursement of salary and other payments,deposit of deductions with banks/treasury, receipt of payments, etc. 6. Maintenance of main cash book of the head Office and reconciliation with banks. 7. Issuance of instructions regarding proper submission of requirements and watching of expenditure. 8. Maintenance of Register for the receipt of deposit Works. M.P.L.A.D., other receipts from Chandigarh Administration in respect of Transferred Employees. 9. Maintenance of classified abstract and submission of receipt and expenditure Account of head office, Sub Office Manimajra and

Enforcement Wing. 10. Pre-audit of bills.

Section Officer (Accounts-III)

Location of Office Telephone No. Responsibilities

Municipal Corporation, New Deluxe Building, Sector 17, Chandigarh. 5021830

1. Assured Career Progression Scheme in respect of MOH office emoloyees. 2.Grant of Annual Increemnts, Maintenance of Service Books, Leave Salary and Pension Contribution, Grant of Earned Leave. 3. Financial Advices to the Fire Wing, Engg. Wing, M.O.H. Office and Head Office, Section of Medical Bills, Assured Career Progression Scheme. 4. Cases of Estate Branch.

Accounts Officer, Pension and Provident Funds

Present Incumbent Location of Office Telephone No. Municipal Corporation, New Deluxe Building, Sector 17, Chandigarh.

5021608

Responsibilities The Pension & Provident Fund Branch of the Corporation deals with the settlement of Personal claims of the employees of the Corporation e.g. maintenance of general provident fund, Payment of Advance and Final claims of GPF etc. The branch is also settling the pension/leave encashment/Group Insurance Scheme/ Deposit link insurance claim/ex-gratia etc in r/o employees. All the retirees are getting their pension every month through varous banks. The branch is being looked after by Accounts Officer and Supervised by the Chief Accounts Officer and Joint Commissioner

Hindustan Unilever Limited Overview

FINANCIAL PERFORMANCE (STANDALONE)

DIVIDEND

Demerger of FMCG Exports Business

CUSTOMER MANAGEMENT

SUPPLY CHAIN

COMPETITION

Hindustan Unilever shares surged 20 percent in opening trade to touch a lifetime high of Rs 597 per share on NSE on Tuesday after its Anglo-Dutch parent Unilever said it is making a voluntary open offer to acquire 48.70 crore shares, which is 22.52 percent of the total voting share capital from the public shareholders of the largest consumer goods company in India. The open offer at Rs 600 a share is at a 20.5 percent premium and is worth Rs 29,190 crore. Unilever directly and through other firms like Brooke Bond Group, Unilever Overseas Holdings, Unilever UK & CN Holdings among others currently holds 52.47 percent stake in HUL and its stake can go up to 75 percent if the open offer is successful. HSBC is the sole manager to the open offer. The open offer from Unilever follows better-than-expected fourth quarter earnings by HUL. Its net profit for Jan-March quarter rose 15 percent year-on-year to Rs 787 crore (analysts expected Rs 761 crore), helped by lower cost of key raw materials. Net sales were up 13 percent to Rs 6,367 crore (analysts expected Rs 6,317 crore). Unilever Plc, the parent of Hindustan Unilever Tuesday said it would make an open offer for an additional 22.52 percent stake in the company at Rs 600 per share. The Anglo-Dutch consumer goods giant will pay USD 5.4 billion to raise its stake in the Indian unit. The offer price represents a premium of 20.5 percent to Mondays closing price of Rs 497.Unilever already holds 52.48 percent stake in the company, and if the offer succeeds, its stake in the company will increase to 75 percent. Market experts expect the HUL stock to climb to Rs 550 near term. The acceptance ratio in the offer will be 47.30 percent, which means that if a HUL shareholder tenders 100 shares in the open offer, 47 of them will be accepted. HUL's fourth quarter numbers announced Monday were better than analyst estimates, driven by an improvement in volume sales. The market is viewing Unilevers offer as a vote of confidence in the long term prospects of HUL, and a bullish outlook on the FMCG sector

Anglo-Dutch company Unilever Plc, along with Unilever NV will acquire about 487 million shares, or 22.52 percent, of Hindustan Unilever in a deal valued at about USD 5.4 billion. The parent company will buy Hindustan Unilever shares for Rs 600 rupees (about $11) each, 20.6 percent premium to the Monday's closing price, the manager to the offer HSBC Securities and Capital Markets informed the stock exchanges on Tuesday. Following the announcement, the HUL stock moved up 20 percent in the morning trade. It touched a new 52-week high of Rs 596.65 on NSE on Tuesday. Unilever directly and through other firms like Brooke Bond Group, Unilever Overseas Holdings, Unilever UK & CN Holdings among others currently holds 52.47 percent stake in HUL and its stake can go up to 75 percent if the open offer is successful

FINANCIAL PERFORMANCE (STANDALONE)

Results (see para 1.4)
for the year ended 31st March, 2012 Revenue from operations, net of excise Profit before exceptional items and tax Profit for the year Dividend (including tax on distributed profits) Transfer to General Reserve Profit & Loss Account balance carried forward 22,116.37 3,350.16 2,691.40 (1,883.90) (269.14) 1,773.96 Rs. Crores for the year ended 31st March, 2011 19,735.51 2,730.20 2,305.99 (1,641.96) (230.60) 1,235.60

Category wise Turnover Rs. Crores for the year March, 2012 Sales Soaps and Detergents Personal Products Beverages Packaged Foods Others (including Exports, Chemicals, Water etc.)
25000 20000 15000 10000 5000 0 for the year ended 31 mar 2011 for the year ended 31 mar 2012

ended 31st Others 147.90 98.91 40.41 17.53

for the year March, 2011 Sales 8,683.88 5,750.68 2,309.23 1,162.28

ended 31st Others 117.18 99.71 37.27 16.15

10,488.38 6,746.95 2,577.02 1,341.93

581.32

55.04

1,474.94

64.37

Total

21,735.60

359.79

19,381.01

334.68

* Others represent service income from operations, relevant to the respective businesses.

Summarised Profit and Loss Account (see para 1.4)

Rs. Crores For the year ended 31st March, 2012 Sale of products less excise duty Other operational income Total Revenue Operating Costs PBDIT Depreciation PBIT Other Income (net) Profit before exceptional item Exceptional Item PBT 25,000.00 20,000.00 Taxation 15,000.00 Profit for the year 10,000.00 5,000.00 Basic EPS 0.00 (Rs.)
Soaps and Personal Products Beverages Packaged Foods Others (including Exports, Chemicals, Water etc.)

For the year ended 31st March, 2011 19,381.01 354.50 19,735.51 (17,057.12) 2,678.39 (220.83) 2,457.56 272.64 2,730.20 206.83 2,937.03 (631.04) 2,305.99 for the 10.58 year ended
2012 Sales for the year ended 31st March, 2011 Sales

21,735.60 380.77 22,116.37 (18,825.03) 3,291.34 (218.25) 3,073.09 277.07 3,350.16 118.87 3,469.03 (777.63) 2,691.40 12.46 for the year ended
Total

31st for the year ended 31st

31st March,

25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 Sale of products less excise duty Other operational income Total Revenue Operating Costs PBDIT Depreciation Other Income (net) Profit before exceptional item Exceptional Item PBT Taxation Profit for the year -5,000.00 -10,000.00 -15,000.00 -20,000.00 PBIT Basic EPS (Rs.) For the year ended 31st March, 2012 For the year ended 31st March, 2011

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 had approved in-principle a Scheme of Arrangement for transfer of the FMCG Exports Business Division (demerged business undertaking) of the Company into its wholly owned subsidiary, Unilever India Exports Limited (UIEL''), on 9th May, 2011 which subsequently was approved by the shareholders on 28th July, 2011. The Hon''ble High Court of Bombay sanctioned the said Scheme with the appointed date of 1st April, 2011. Accordingly, the financial results of the demerged business undertaking do not form part of the audited results of the Company for the year

ended 31st March, 2012. However, the audite results of the Company for the year ended 31st March, 2011 included the results of the said demerged business undertaking and hence, to that extent, previous year figures are not comparable with the current year figures. The results of the Company excluding the results of the demerged business undertaking for both the years are given below:

For the year ended 31st March, 2012 Revenue from operations, net of excise Profit before exceptional items and tax Profit for the year 22,116.37 3,350.16 2,691.40

For the year ended 31st March, 2011 18,796.24 2,654.48 2,246.19

25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 Revenue from operations, net of excise Profit before exceptional items and tax Profit for the year For the year ended 31st March, 2012 For the year ended 31st March, 2011

DIVIDEND
Your Directors are pleased to recommend final dividend of Rs. 4.00 per equity share of face value of Re.1/- each for the year ended 31st March, 2012. The interim dividend of Rs. 3.50 per equity share was paidon 22nd November, 2011. The final dividend, subject to approval of shareholders at the Annual General Meeting on 23rd July, 2012, will be paid to the shareholders whose names appear in the Register of Members as on the date of book closure i.e. from Friday, 6th July, 2012 to Friday, 20th July, 2012 (inclusive of both dates). The total dividend for the financial year including the proposed final dividend amounts to Rs. 7.50 per equity share and will absorb Rs. 1,883.90 Crores including Dividend Distribution Tax of Rs. 262.96 Crores.

CUSTOMER MANAGEMENT
In 2011-12, your Company has built on the initiatives of the previous years and has further strengthened its reputation as an execution and distribution powerhouse. One of the key thrusts during the year was coverage expansion in the rural markets. The Shakti network has been leveraged to enroll 30,000 Shaktimaan who distribute in 100,000 new villages. The Company has added a million stores over the last two years to its coverage, thus doubling its direct coverage and tripling its rural coverage. Your Company has now built a clear distribution advantage with a direct reach of more than 2 million outlets. The Perfect Store programme aimed at improving availability and visibility of Companys products at the point of purchase continued making good progress with over a million retail outlets being enrolled under this programmed across urban and rural India. With a single minded focus on the Perfect Store programmed, your Company converted 500,000 enrolled outlets into Perfect

Stores during the year. It is now established that stores which are consistently Perfect grew sales well ahead of average retail growth and had higher market share growth for your Companys overall portfolio compared to overall share growth. Your Company believes that the end consumer can be better served if the capabilities of the front-end resources on the ground get enhanced. With this objective in mind, work on a project to build a Human Resource Information System (HRIS) for 20,000 plus third party associates, who work in the market, was completed. This project is in the direction of improving the systems and processes and the capabilities of our associates and reaffirms your Companys commitment towards its customers and consumers. The year also saw greater focus on customers to drive growth and ensure seamless working relationship with the partners. cross functional ''Customer Care'' teams were deployed for the Modern Trade customers to drive higher levels of customer service and engagement, which resulted in overall customer delight. This initiative has given very good results and your Company was awarded the best supplier by almost all leading Modern Trade customers in this year. Your Company also developed Best-inClass'' sustainability initiatives with Wal-Mart and Metro that helped bring alive the Unilever Sustainable Living Plan (USLP). The learnings of Modern Trade were extended to General Trade and a Joint Business Planning process with top customer was institutionalized under the umbrella of Unisia'', a comprehensive customer reward and recognition program. Your Company launched Customer Credo'' across 2300 plus distributors tofurther improve customer connect and faster resolution of issues. Under this initiative, the Company proactively engaged with distributors and trade to get into the shoes of the customer and experience issues from their lens. This was supported with a resolution mechanism using Levercare'', the customer helpline, taking customer centricity to the next level. The program me was christened Happy 2 Help'' and is planned to be repeated once every quarter. During the year, your Company piloted an alliance with Tata Teleservices Limited (TTSL) for the distribution of telecom products, leveraging its rural distribution footprint. The Company has scaled the distribution alliance with

TTSL to four states covering over 150 channel partners. This distribution arrangement is aimed at accelerating rural growth by enabling the Company to go deeper into rural India due to improved viability for channel partners.This initiative not only helps the Company build more stable Shakti entrepreneurs but also enables it to increase rural investments thereby unlocking growth in this channel.

SUPPLY CHAIN
During the year, your Company has made significant progress towards its

vision of delivering outstanding customer service and enabling sustainable growth. The service delivery standards showed steady improvement with CCFOT (Customer Case Fill on Time) maintained at 90% and loss reduction by 20% in comparison to last year. The Customer Satisfaction (eQ) survey scores have been encouraging and suggest that the actions taken by the Company are in the right direction. With the help of a sustained improvement program, the Modern Trade OSA (On-Shelf Availability) has seen further improvement with a loss reduction of 25% in comparison to last year. Your Company has embedded Sales and Operation Planning Process (S&OP) ways of working as part of the organization culture and this is adding value to the business.The Quality performance measured as CCPMU (Consumer Complaints Per Million Units) has shown 12% reduction over last year. Quality continues to be a focus area with thrust on design quality improvement and new quality standard implementation for warehousing and transportation. Your Company has a robust Supply Chain savings programme with continuous focus on end-to-end Supply Chain cost reduction with new technologies, processes and methods. During the year, your Company has delivered 6% saving in Supply Chain cost with factories delivering more than 8% saving with quantum improvement in technical efficiencies, wastage reduction and yield improvement The renewed focus on TPM (Total Productivity Management) and visible leadership commitment toward turbo charging TPM, through strong focus on autonomous maintenance, strong circle engagement, loss analysis and reduced losses to improve PQCDSM (Productivity, Quality, Cost, Delivery, Safety and Morale), have helped the Company to improve employee engagement, efficiency and derive competitive advantage. In order to support the

volume growth, your Company has progressed on the long-term plan to create capacities in line with demand so as to enable growth while managing costs. Your Company has successfully executed all capacity creation projects on time to ensure smooth delivery during the year. A number of projects on sustainable energy (bio-mass boilers), rain water harvesting and waste reduction projects like sludge digesters and vermin-composting have been initiated and commissioned across manufacturing sites. There has been significant improvement in Innovation OTIF (On Time infill) with more than 100 innovation networks being executed during the year. This ability of execution powerhouse is supporting business to delight consumers and customers and catering to growth. The Procurement function of the Company has focused on Partner to Win'' programme with supplier and business partners to reduce lead time, procurement cost, improving reliability and working on new innovation. Your Company also leverages benefits of scale and synergy through Unilever''s global buying network.

Competition
Name HUL Godrej Consumer Dabur India Colgate Marico Godrej Ind Emami P and G Gillette India Bajaj Corp Jyothy Labs Amar Remedies JHS Svendgaard GKB Ophthalmics Last Price Market Cap. (Rs. cr.) 572.40 123,779.92 842.15 161.05 1,511.15 216.40 306.15 658.20 2,681.80 2,085.35 253.65 178.85 14.90 15.25 18.10 28,660.63 28,069.97 20,550.55 13,953.00 10,261.10 9,959.34 8,705.32 6,795.16 3,741.34 2,884.21 38.98 36.75 7.52 Sales Turnover 25,810.21 3,581.02 4,349.39 2,693.23 3,407.10 1,438.04 1,389.82 1,297.41 1,232.90 606.72 662.97 671.33 92.80 31.13 Net Profit 3,796.67 510.94 590.98 446.47 429.09 201.56 256.81 181.29 75.73 167.38 83.52 44.62 -3.64 1.71 Total Assets 3,512.93 2,761.43 1,576.54 435.40 1,677.27 1,739.27 804.23 697.06 619.25 427.86 1,226.42 626.58 159.53 30.44

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