Synopsis of CREAM™ Report – Corporate Rating crème de la crème of India Inc. of Hindustan Unilever Ltd. Corporate Rating of Hindustan Unilever, India including Code of Business Principles (CoBP) of both Unilever and HUL India. 340 pages of analysis of a single company, a rating system covering 189 Process Blocks. Unique in presenting Return on Intangible for each Process Block that Rating Agencies would surely follow - Rating of Corporate as well as Governments. The methodology adopted reverses the denominator, from Return on Investment to Return on Intangible, a pole shift theory of management. Useful for companies that want to know and understand the meaning of Capitalism and how best that could be applied. That's it, capitalism the denominator is human spirits, an enthusiasm of spontaneous action, rather than inaction, and certainly not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities, as Keynes describes Animal Spirits in its right perspective. This analysis of a major organization should interest the world over, corporate as well as Government. What is crucial is to know that a material event is the collision point of Ethical and Fiscal Responsibility bringing the abstractions into reality, acknowledge value where value is due, and deconstruct what is valueless. The CREAM™ Report – Corporate Rating, crème de la crème of India Corporate rates Hindustan Unilever on 1.Corporate Governance, 2. Risk Management 3. Earnings 4. Accounting Quality 5. Management Quality. What CREAM™ Report – Corporate Rating does is to shrink the quantitative data to merge with Qualitative elements of Corporate Management by Subject-Object distinction. It is a beauty and simple. This unique rendering of aligning Ethical Responsibility with Fiscal Responsibility is made possible by Subject-Object Distinction of Qualitative and Quantitative Elements of Corporate management. If CoBP is rated, so are the Balance Sheet and Profitability statement, merging all to a single rating system for the Company. The Subject is the pulsating energy and the Object the non-pulsating ones. The Subject either moves the Object or he/she does not, i.e., Action and Inaction. The denominator is Intangible the pulsating energy, the numerator Action or Inaction for an Object. By doing so CREAM strategy converts n-dimensional problems to n-problems of one dimension. Secondly there are only two processes - Creative Process or Action process - relative to an Object. Either you create an Object or make use of it. During the creative process every man-made or Nature substance follow an identical pattern till it becomes tangible. Hence n-dimensional problems are brought to a single dimension of binary value, either you are in the process of creation or moving the inanimate object from one space to the other. There are only two processes for Corporate management - of Policies and Practices. Nothing more to add.

1. – IBCM© Research Publication
CREAM™ Report – Corporate Rating Lessons from - CREAM™ Report AnCorporate Rating - HUL
crème de la crème of India Inc.
Hindustan Unilever Limited

2. Lessons from - CREAM™ Report – Corporate Rating - HUL
5 point formula for CEOs
IBCM© Research announces the release of Corporate rating - CREAM™
Report Hindustan Unilever Ltd., [HUL] first in the series of crème de la
crème of India Corporate.
CREAM™ Report 1. Corporate Governance
2. Risk management
3. Earnings
4. Accounting Quality, and
5. Management Quality.
Corporate Rating - CREAM™ Report triggers Sustainability Mechanism

3. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways - Sustainability Mechanism
1.1 Sustainability of Value System
Sustainability
1. Sustainability of Value System
2. Sustainability of Efficiency
3. Sustainability of Profits
Derived from CREAM™ Report
1. Accounting Quality
2. Management Quality
3. Risk Management
4. Corporate Governance
5. Earnings
1. Sustainability of Value System- On CoBP - Code of Business Principles HUL has published in their
website [since 2008]: It (CoBP[HUL]) forms the benchmark against which the world at large is invited
to judge Company’s activities.
CREAM™ Report has judged HUL by measuring Process Blocks Accounting Quality [29] and
Management Quality [124], including rating of CoBP Unilever & HUL independently.
CREAM™ Report differentiates Conflicts of interests, conflicts of personal Interests and conflicts of
conscience to drive home the point of self-governance as the target for the Corporate culture.
Study confirms the Sustainability of Value System as the crucial collision point of Ethical and Fiscal
Responsibility bringing the abstractions into reality, acknowledge value where value is due, and
deconstruct what is valueless.

4. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
1.2 Sustainability of Value System - Ratings
Sustainability
1. Sustainability of Value
System - Ratings
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
1. Accounting Quality
0
1
0
2
1
2. Management Quality
2
2
2
2
2
1. Rating System: CREAM™ Report derives the rating system from IBCM© Research, the most
powerful rating system on this planet that shall remain forever, the benchmark against which the
world at large is invited to judge.
2. The rating system rates Ethical Responsibility and Fiscal Responsibility, made feasible by SubjectObject distinction of Qualitative and Quantitative elements of Corporate Management that IBCM©
Research facilitates by Return on Intangible.
3. The ratings are 0 – 5 in six-stages of movement of Object that Subject triggers, in two processes
Creative Process and Action process.
4. You may wonder why Accounting Quality is lower than Management Quality. Accounting Quality
does not consider Ethical Responsibility, a bane on Corporate Management. This is a major work HUL,
as well as other companies have to undertake in aligning Ethical Responsibility to Fiscal Responsibility.
5. Management Quality gives that freedom for non-mandatory initiatives, the basis of leadership
assessment by CREAM™ Report. To improve Accounting Quality as well as Management Quality
change the denominator to human effort by Subject-Object relationship established.

5. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
1.3 Sustainability of Value System – Intellectual Value Capital
Sustainability
Intellectual Value Capital
Ratings
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
1
1
1
2
1
1. Accounting Quality and Management Quality are the protons in the Corporate Atomic Structure, of
creative process that Intellectual Value Capital of HUL is made up of.
2. The Intellectual Value Capital of HUL is at 1,1,1,2,1 a combined value of 29+124 = 153 Process
Blocks comprising of Accounting Quality and Management Quality. Barring the year 2011-12 the
value is flat, stuck at 1.
3. 124 Process Blocks under Management Quality identify the opportunities lost or misdirected
4. Society is the neutron in the Corporate Atomic structure that does not change the identity of the
Company but adds mass to it.
5.Society cannot add mass in any other area excepting Management Quality where the Society is
packed into a nucleus with the Board that Independent Directors have to take note of.
6.Among the stakeholders of HUL the Society tops the list and the shareholders follow next.
7.Incremental value of Intellectual Value Capital brings in huge energy to the organisation, very huge
indeed that CREAM™ Report addresses, which is in a state of Quiescence, for 5 years now.
8. CSR means HUL improves their Ratings of Intellectual Value Capital to an optimised level of 5.

6. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
2.1 Sustainability of Efficiency – Risk Management
Sustainability
2. Sustainability of Efficiency Ratings
3. Risk Management
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
3
3
3
3
3
1. Risk management is made up of 8 Process Blocks covering Robust Systems, Key Control Issues,
Aligning Risks and Controls, In line with Sarbans-Oxley [s.404] and other related Internal Controls
2.Risk Management and Corporate Governance fall into the category of Practices. However it is the
Policies that we tend to report to the public and how one practices, public is not informed.
3. A good Quality Policy created is no guarantee for follow-up during Action Process, as Richard M
Murphy finds out on Siemens [OECD antibribery instruments compilations of responses to
consultation paper]: Governance is not compliance and ethics and disputes OECD's conclusion that
large multinational companies generally have adequate internal compliance controls. He continues in
the same breath: One need only look at the record at Siemens (whose code of conduct was described
as the ―read, laughed and filed code), or the long, legalistic (and ineffective) code that existed at
Enron to see the great danger in such sweeping conclusions.
4. CREAM™ Report looks for the missing link aligning Ethical Responsibility to Fiscal Responsibility
that Corporate Management disregards.
5. Risk management is crucial in locating critical control points towards self-governance. This in its
entirety rests on Ethical Responsibility brought in as substantive Qualitative element.

7. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
2.2 Sustainability of Efficiency – Corporate Governance
Sustainability
2. Sustainability of Efficiency Ratings
4. Corporate Governance
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
2
2
2
2
2
1. Corporate Governance covers 7 issue areas such as Disclosure of pending cases, Compliance with
Governance Framework, Communication to Shareholders, of 23 Process Blocks.
2. One area where there has been a non-mandatory initiative is Compliance with Governance
Framework as well as introduction of Secretarial Audit that CREAM™ Report rates higher.
3. The net Ratings of Corporate Governance comes to only 2. By and large aligning Ethical
Responsibility to Fiscal Responsibility is crucial for higher ratings that HUL possibly could reach once
Subject-Object Relationship is established. However there remains 0 [zero] ratings where HUL values
high and CREAM™ Report finds valueless.
4. CREAM™ Report is based on Return on Intangible where the denominator is a team of individuals
entrusted with a Process Block. A team becomes the owner of a Block. The same team is represented
in each and every Process Block since human energy is same throughout. The numerator is checked
as to the Action taken or not related to the Quality of the Object which is a Process Block.
5. Quality of the Object managed becomes crucial in Corporate Governance. Corporate Governance is
not of The Board or CEO as it rests on facilitating the lowest-paid employee to discharge his/her
duties aligned with Ethical responsibility. Hence rating of 2 indicates where the shortfall is.

8. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
3.1 Sustainability of Profits – Earnings – 15% Club
Sustainability
2. Sustainability of Profits Ratings
5. Profit and Loss Account
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
0
1
0
1
0
1. Central to the Subject-Object distinction of Corporate management is the rate of growth in
efficiency. You may increase the revenue generation or reduce costs resulting in better profits.
2. You plan and execute. Put in the effort. The effort is Intangible the denominator. Object is inert.
The effort is to move the Object from one space to the other. As planned and executed the Object
has moved according to the effort to reach the optimum level.
3. An average ratings of 5 process blocks on Net revenue, Cost of Materials, Employee benefits, Other
expenses and profits before exceptional items HUL gets 1,2,1,2,1 assigned to the four Fiscal
Responsibility group individually, 1. Managerial Force, 2. Operating Force, 3. Technology and 4.
Finance. Adding a value of 0[zero] for Ethical Responsibility yet to be integrated to Fiscal
Responsibility HUL gets a value of 0,1,0,1,0 as given above.
4. The ratings are arrived at, in a pattern of gradual linear development that an Object advances,
directly proportional to the assigned effort put in. The target is set at 15% and the resultant ratings
would be 5 if the targets are met. The ratings of HUL signify 15% Club targets reached.

9. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
3.2 Sustainability of Profits – Growth – 15% Club
Sustainability
2. Sustainability of Profits Ratings
6. Balance Sheet
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
0
0
0
3
1
1. An average ratings of 6 process blocks on Dividend, Trade Payables, Tangible Assets, Inventories,
Trade Receivables and Current Investments coupled with Ethical Responsibility fetches HUL ratings as
above, 0,0,0,3,1.
2. This again is on the basis of 15% growth set for HUL.
3. Further analysis of Business Segments 1. Soaps and Detergents, 2.Personal Products, 3.Beverages,
4. Packaged Foods and 5. Others are, available under Significant Accounting Policies: 1. Revenue
Recognition, 2. Expenditure, 3.Total Assets: Accounting Policy, by the 15% Club criteria.
5. Together you arrive at a HUL rating of 0,0,0,3,1 for the 5 years respectively.
6. What is highlighted is a variety of Policy initiatives or lack of it, in Dividend Policy, Inventories,
Trade Payables, Trade Receivables, Investments policy, the 5-business segments as to how they have
been made use of what their future is, considering the 3.15% Royalty fee to the holding company
Unilever.
7. What is derived is the status of HUL in jeopardy as to where they began 80 years back and how
they have been gridlocked by there own Management Quality. Or to know who the beneficiaries are?

10. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
3.3 Sustainability of Profits – Emotional Value Capital
Sustainability
2. Sustainability of Profits –
Emotional Value Capital - Ratings
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
4.Corporate Governance
2
2
2
2
2
5. Risk Management
3
3
3
3
3
6. Earnings
0
0
0
1
0
Emotional Value Capital
1
1
1
2
1
Emotional Value Capital consists of the three elements CREAM™ Report deals with. These three
elements start with gross Object whereas Intellectual Value Capital starts in a state of Quiescence.
Because of its nature Emotional Value Capital overwhelms the Intellectual Value Capital despite its
total dependence on the latter.
Despite earnest attempts on Corporate Governance and Risk Management, Emotional Value Capital is
low mainly due to Earnings capability is almost nil.
For the reason why it is low you have to check at Intellectual value Capital.
CREAM™ Report pulls out these reasons quite evident from the 154 process blocks of Intellectual Value
Capital of HUL

11. Lessons from - CREAM™ Report – Corporate Rating - HUL
3 Top takeaways -Sustainability Mechanism
3.4 Sustainability – Intangible Value Capital
Sustainability
Intangible value Capital
Derived from CREAM™ Report
2008-09
2009-10
2010-11
2011-12
2012-13
Intellectual Value Capital
1
1
1
2
1
Emotional Value Capital
1
1
1
2
1
Intangible Value Capital
1
1
1
2
1
153 Process Blocks of Intellectual Value Capital matches with 36 Process Blocks of Emotional Value
Capital – 1,1,1,2,1. To reach optimum level HUL Index of Inactivity is as follows
ER Management - CER
16.80%
16.80%
16.80%
16.80%
16.80%
Managerial Force - CFR
10.40%
9.60%
10.40%
8.00%
9.60%
Operating Force - CFR
10.40%
9.60%
10.40%
8.00%
9.60%
Technology - CFR
10.40%
9.60%
10.40%
8.00%
9.60%
Finance - CFR
10.40%
9.60%
10.40%
8.00%
9.60%
Index of Inactivity Total
58.40%
55.20%
58.40%
48.80%
54.40%
Whereas Ratings represent the stages of completion Index of Inactivity considers the fractions from
where tasks are resumed for completion.
CER Corporate Ethical Responsibility Management and CFR – Corporate Fiscal Responsibility

12. Lessons from - CREAM™ Report – Corporate Rating - HUL
Intangible Value Capital of Hindustan Unilever Ltd.- 1
1. Intellectual Value Capital: In areas of Code of Conduct, Code of Business Principles, Conflicts of
Interests resolution, Secretarial Audit, Governance Framework initiatives HUL performance is pretty
good.
2. The reason for a low turnout of ratings in Intellectual value Capital is of two kinds: I. Aligning Ethical
Responsibility with Fiscal Responsibility which is imperative to enhance the ratings. ii. Kodaikanal
Thermometer Factory tragedy in 2001 is yet not resolved. This is going to be a major handicap in
understanding the Company with regard to UNGC Global Compact 10 Principles. Steps are not taken
effectively on this count and would continue to weigh down the Intellectual Value Capital of HUL.
3. Emotional Value Capital, is also weighed down on account of two counts: I. The entry point for new
ventures is part of the business segment 'others'. New ventures alone can hope to increase the gap for
joining 15% club as existing ones have reached the point of no return with packaged foods surviving
with a mere 1% margin. With Royalty payment to holding company Unilever that has already started in
April 2013 would squeeze any margin left from every business segment that would endanger
company's capability to move forward.
ii. Surplus assets are encashed. CREAM™ Report has recommended proposal for sale of surplus assets
be given three years in advance to the Board. At the same time Investments in Market had begun that
CREAM™ Report has commented 'Optimised results for this process Block creates a capability paradox.'
Secondly Trade Payables stand at 177,212,182,142,138 days of consumption as against Trade
receivables of 12,14,18,13,13 days of revenue.

13. Lessons from - CREAM™ Report – Corporate Rating - HUL
Subject-Object Mechanism

14. Lessons from - CREAM™ Report – Corporate Rating - HUL
Intangible Value Capital of Hindustan Unilever Ltd. - 2
4.HUL effectively is in cottage sector. Economic Survey 2012-13 forecasts: “Growth optimists are
confident in India's demographic dividend--the fact that India's dependency ratio, as measured by the
share of the young and the elderly as a fraction of the population, will come down more sharply in the
coming decades. More working age people will mean more workers, especially in the productive age
groups, more incomes, more savings, more capital per worker, and more growth. Also, because
demographic change is associated with fertility declines, the transition period may be accompanied by
greater female participation in the labour force (Bailey, 2006).” HUL strategy on use of surplus labour
force would be crucial for its own development lest the government of the day is forced to develop
AMUL Model for HUL Products.
5. Sustainability of Value System needs to be improved particularly effective measurable UNGC Global
Compact 10 Principles by Subject-Object relationship established.
6. Sustainability of Efficiency rests on establishing self-governance processes for each process block, as
the Share Dealing Code and Whistle Blower Policy are not sufficient.
7. Sustainability of profits is challenged. 1. Joint-ventures are found wanting. Create CREAM™ Report of
Business partners. 2. Improve productivity by establishing Subject-Object distinction of Qualitative and
Quantitative elements of Corporate Management. 3. Hierarchical top-down with one call centre is a
thing of the past, if future needs to be secured. 4. Ethical Responsibility controls the risk appetite and
spreads risk culture towards self-governance. 5.HUL shall target Index of Inactivity as per the CREAM™
Report.
IBCM© Research Inactivity Based Cost Management where Inactivity refers to Inactive elements of Intangible – human energy.

15. Lessons from - CREAM™ Report – Corporate Rating - HUL
CREAM™ Report – Corporate Rating is based on SEBI's Mandatory Rating
for IPO grading
1. The CREAM™ Report adopts a sound methodology, Return on Intangible with Intangible as the
denominator and Action or Inaction as the numerator.
2.The binary value obtained for each process block enables merging one with the other any number of
disparate elements Qualitative as well as Quantitative to arrive a single digit value of Intangible Value
capital.
3.CREAM™ Report has begun a National Grid of Corporate Ratings where your organisation will be
benefited in being part of crème de la crème of India Inc.
4. CREAM™ Report – Corporate Rating of Hindustan Lever Ltd. Provides an Index of Inactivity as to the
steps yet to be taken by the only resource area any Corporate has, human capital. This is the most
advanced project management technique ever created keeping you on toes by real-time monitoring
basis. Set targets, as Index of Inactivity shows and go ahead with tasks for completion: dT/dT going at
the optimum speed of 5 of series of Tasks/Time.
5. CREAM™ Report – Corporate Rating - Corporate Governance, Risk Management, Earnings,
Accounting Quality, Management Quality - is based on SEBI's Mandatory Rating for IPO grading.
Prepare yourself ready to attract the public during IPO. Plan your IPO, public has money, even for
stupid movies. Tap the resource. Can you? Yes, you can with a CREAM™ Report – Corporate Rating.
CREAM™ Report measures what Unilever CEO Paul Polman states Increasingly consumers
will vote with their wallets for companies that are just and equitable.

16. Lessons from - CREAM™ Report – Corporate Rating - HUL
Be part of CREAM™ Report – Corporate Rating
Hindustan Unilever Ltd is a proud organisation that many a manager express the solidarity with the
Company long, long after their association as 75 years volume published convey. India too is proud of
their managers coming from humble background to man global positions .
●India's problems are one too many, first of all the number of people in search of a living. State has
abandoned the people with no development in any sector.
●Historically it is the business community that had withstood the onslaught of corrupt practices, as
Marco Polo had expressed about India. I enjoy seeing the villagers' weekly market where I stay.
Integrity and honesty are not the catchwords CREAM™ Report – Corporate Rating use, but measures
them with Subject-Object relationship established.
●HUL, the study reveals is working for the Society but location is misplaced. There is no gainsaying,
MNCs look for return on their investments. 3.15% of Royalty payment to the holding company for
every product sold by HUL portrays our stupidity, as HUL products are of Cottage sector. I am aghast.
●Indian companies are capable of expansion and there are many struggling because of corrupt
practices that disrupt their existence. Aligning Ethical Responsibility to Fiscal Responsibility gives you
the strength in occupying business areas that MNCs are struggling to hold, HUL particularly.
●I want Trustworthy India Inc. be brought to the fore, so that your IPOs are fully subscribed. Be a part
of it. Be a just and equitable company that India can boast of for public to vote with their wallets, and
for me to fight for.
●
Jayaraman Rajah Iyer, Jayar.ibcm@gmail.com
For the full report [1 page for each issue/350 pages] comprehensive CREAM™ Report – Corporate
Rating Hindustan Unilever Ltd. for adaptation to your company,obtain from
http://www.amazon.com/dp/B00GR6K9UM