Unilever 2003 Annual Report Download - page 150

Unilever Annual Report & Accounts and Form 20-F 2003 147
Notes to the company accounts
Unilever N.V.
Fixed investments
€ million € million
2003 2002
Shares in group companies 11 008 11 008
Book value of PLC shares held in
connection with share options 381 368
Less NV shares held by group companies (228) (168)
Other unlisted investments –208
11 161 11 416
Movements during the year:
1 January 11 416
Movement in PLC shares held in connection
with share options 13
Movement in NV shares held by group companies (60)
Other unlisted investments (208)
Additions –
Decrease –
31 December 11 161
Shares in group companies are stated at cost in accordance with
international accounting practice in various countries, in particular
the United Kingdom. In accordance with Article 385.5 of the Civil
Code in the Netherlands, Unilever N.V. shares held by Unilever
N.V. subsidiaries are deducted from the carrying value of those
subsidiaries.
Debtors
€ million € million
2003 2002
Loans to group companies 17 088 19 214
Other amounts owed by group companies 2 531 1 089
Amounts owed by undertakings in which
the company has a participating interest –1
Other 215 298
19 834 20 602
Of which due after more than one year 819 882
Cash at bank and in hand
€ million € million
2003 2002
This includes amounts for which repayment
notice is required of: 43 187
Creditors
€ million € million
2003 2002
Restated
Due within one year:
Bank loans and overdrafts 74
Bonds and other loans 5 209 3 962
Loans from group companies 311 1 817
Other amounts owed to group companies 13 276 12 304
Taxation and social security 76 238
Accruals and deferred income 232 205
Dividends 642 643
Other 12 162
19 765 19 335
Due after more than one year:
Accruals and deferred income 88 –
Bonds and other loans 3 393 5 257
During 2003 NV changed its accounting presentation for securities
received and held as collateral in respect of derivative financial
instruments. Until 2002 NV presented such collateral under cash
on call and in hand and under bonds and other loans respectively.
Because, in normal circumstances, NV has to return the securities in
the same form as the original security received, and NV does not
retain the benefit of any dividends or interest on those securities, they
are not presented as assets and liabilities of NV. As a result, both cash
on call and in hand and bonds and other loans at 31 December 2002
have been reduced by €574 million.
In accordance with the UK Companies Act 1985 the Group presents
the final dividend which is proposed after the balance sheet date as
a creditor.
Provisions for liabilities and charges (excluding pensions
and similar obligations)
€ million € million
2003 2002
Deferred taxation and other provisions 156 131
Of which due within one year 68 64
Ordinary share capital
Shares numbered 1 to 2 400 are held by a subsidiary of NV and
a subsidiary of PLC, each holding 50%. Additionally, 22 163 785
€0.51 ordinary shares are held by NV and other group companies.
Full details are given in note 29 on page 124.
Share premium account
The share premium shown in the balance sheet is not available for the
issue of bonus shares or for repayment without incurring withholding
tax payable by the company. This is despite the change in the
Netherlands tax law, as a result of which dividends received from
2001 onwards by individual shareholders who are Netherlands
residents are no longer taxed.
Other reserves
€ million € million
2003 2002
1 January (1 041) (783)
Change in number of shares or certificates
held in connection with share options (202) (258)
31 December (1 243) (1 041)
Profit retained
€ million € million
2003 2002
Profit retained as reported in the Annual
Report & Accounts 2002 6 591
Accounting policy change – pensions (10)
Balance 31 December 7 304 6 581
Profit retained shown in the company accounts and the notes thereto
is greater than the amount shown in the consolidated balance sheet,
mainly because of certain inter-company transactions which are
eliminated in the consolidated accounts.
Contingent liabilities
These are not expected to give rise to any material loss and include
guarantees given for group and other companies, under which
amounts outstanding at 31 December were:
€ million € million
2003 2002
Group companies 6 278 8 878
Of the above, guaranteed also by PLC 4 946 5 864
NV has issued joint and several liability undertakings, as defined in
Article 403 of Book 2 of the Civil Code in the Netherlands, for almost
all Dutch group companies. These written undertakings have been
filed with the office of the Company Registry in whose area of
jurisdiction the group company concerned has its registered office.