ASSIGNMENT

ON

MANAGEMENT CONTROL SYSTEM

TOPIC: “A STUDY ON THE INTERNAL CONTROL SYSTEM AND RISK

MANAGEMENT OF HINDUSTAN UNILEVER LIMITED(HUL)”

GUIDE- Dr. Shankharaj Roy

FACULTY OF MANAGEMENT STUDIES

ICFAI UNIVERSITY,TRIPURA
Submitted to:
Rajdip Mazumder
18IUT016004
MBA 2nd year
 INTRODUCTION TO MANAGEMENT CONTROL SYSTEM
 Management:- Management is the science and art of getting people
together to accomplish desired goals and objectives by coordinating and
integrating all available resources efficiently and effectively.
 Control: - According to Harold Koontz Controlling is the measurement
and correction of performance in order to make sure that enterprise
objectives and the plans devised to attain them are accomplished.
 System: - A system is a collection of elements or components that are
organized for a common purpose. It can also be defined as a set of things
working together as parts of a mechanism or an interconnecting network;
a complex whole.

MANAGEMENT CONTROL SYSTEM

A MCS is a set of interrelated communication structures that facilitates
the processing of information for the purpose of assisting managers in
coordinating the parts and attaining the purpose of an organization on a
continuous basis.
 Management Control Activities Of HUL
 Planning what the organization should do.

 Coordinating the activities of several parts of the organization.

 Communicating information.

 Evaluating information.

 Deciding what, if any, action should be taken.

 Influencing people to change their behaviour.

 Risk Management: According to CIMA, “A process of understanding

and managing the risks that the entity is inevitably subject to in
attempting to achieve its corporate objectives.”
 Introduction to Hindustan Unilever (HUL)
 HUL was established in 1933 as Lever Brothers and following merger of constituent
groups in 1956 was renamed as Hindustan Lever Limited. The company was
renamed in June 2007 as "Hindustan Unilever Limited”
 Hindustan Unilever Limited (HUL) is a British-Dutch manufacturing company
headquartered in Mumbai, India.
 Its products include foods, beverages, cleaning agents, personal care products, water
purifiers and consumer goods.
 The Company has about 18,000 employees and has sales of INR 37660 crores
(financial year 2018-19)
 FINANCIAL CONTROLS OF HUL
 Maintenance of record in reasonable details that reflect the transactions
and dispositions of the assets of the company.
 Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements.
 Receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the
company.
HR PRACTICES/POLICIES OF HUL LTD.
 Our employee relations policy recognises the freedom of association and
 Collective bargaining.
 Our recruitment policy doesn't permit engagement of child labour
directly or indirectly. Regular audits ensure compliance at our own sites
and at third party locations/sites.
 Recruitment and selection.
 Performance Management.
 Training & Development.
 Employee Engagement.
 Compensation.
 Talent Management.
Among the distribution network, Project Shakti is the most revolving one where the rural
women has been tapped tor represent HUL. Here, the rural women are termed as Shakti
Ammas. They were the direct sellers of home care,health & hygeine products on a cash &
carry basis. They cover 6-10 villages of population 1600-2000.

C&F AGENT Redistribution Shakti Shakti

Stockist Distributor Entrepreneur
 MARKETING CONTROL OF HUL
With such a large number of household brands under each product
categories whether it is home care, food & refreshments, personal care
and toiletries HUL are leading in the markets it is present into which is
helping the brand in achieving consistent, competitive and profitable
growth.

 Segmentation, targeting, positioning in the Marketing strategy

of HUL:
1. HUL uses a mix of demographic, geographic and psychographic
segmentation variables to address the changing needs of the customers.
2. It uses differentiating targeting strategies to make the products
available to the customer accordingly as per their choice.
3. HUL has a large number of brands in its brand portfolio and it
positions the brands on benefit and usage based positioning strategies.
 AUDIT SYSTEM OF HUL
 Identify and assess the risks of material misstatement, whether due to
fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion.

 Obtain an understanding of internal control relevant to the audit in

order to design audit procedures that are appropriate in the
circumstances.

 Evaluate the appropriateness of accounting policies used and the

reasonableness of accounting estimates and related disclosures made
by management.

 Evaluate the overall presentation, structure and content of the

standalone financial statements, including the disclosures, and whether
the standalone financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.