“A STUDY ON THE FINANCIAL PERFORMANCE

ANALYSIS OF HINDUSTAN UNILEVER LIMITED”

Submitted in partial fulfillment of the requirement for the award

of the degree of

BACHELOR OF COMMERCE

Submitted by

SWETHA S
(39740239)

BACHELOR OF COMMERCE
SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED TO BE UNIVERSITY)

Accrediated with Grade “A” by NAAC 112B Status by UGC I Approved by AICTE
Jeppiar nagar, Rajiv Gandhi Salai, chennai – 600119

May 2022
 SATHYABAMA INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED TO BE UNIVERSITY)

Accredited by “A” grade NAAC, 12B Status by UGC, Approved by AICTE

Jeppiar Nagar, Chennai – 600119
www.sathyabama.ac.in

SCHOOL OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE FINANCIAL
PERFORMANCE ANALYSIS OF HINDUSTAN UNILEVER LIMITED” is a bonafide record of
project done by SWETHA. S (39740239) under my guidance and supervision in partial fulfilment
of the requirement for the award of the degree of BACHELOR OF COMMERCE and it has not
previously formed the basis for any Degree, Diploma and Associateship or Fellowship.

Dr. R. THAMILSELVAN

Internal Guide External Guide

Submitted for Viva voice examination held on _________________

Internal Examiner External Examiner

 DECLARATION

I, SWETHA S, hereby declare that the project work entitled “A STUDY

ON THE FINANCIAL PERFORMANCE ANALYSIS OF HINDUSTAN UNILEVER
LIMITED” is a record of independent and bonafide project work carried out by me
under the supervision and guidance of Dr. TAMILSELVAN .R, M.Com, M.B.A,
M.Phil, B.Ed., Ph.D., Department of Commerce, Sathyabama Institute of Science
and Technology.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Chennai SWETHA S

Date: 39740239
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all people
who have helped me with sound advice and able guidance.

I convey my thanks to Dr. G.BHUVANESHWARI. G.,Dean, School of Management

Studies and Dr. A. PALANI, Head of the Department of Management Studies, for
providing me necessary support and details at the right time during the progressive
reviews.

I would like to express my sincere and deep sense of gratitude to my Guide Dr.
TAMILSELVAN. R, M.Com, M.B.A, M.Phil. B.Ed., Ph.D., Associate Professor of the
Department for his valuable guidance, suggestion and constant encouragement paved
way for the successful completion of my project work.

I would like to express my gratitude to all the faculties of the Department for their
interest and cooperation in this regard.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.

SWETHA S
 TABLES OF CONTENTS

CHAPTER CONTENTS PAGE

NO. NO:

ABSTRACT i

LIST OF TABLES ii

LIST OF FIGURES iii

1 INTRODUCTION 1–7

1.1 Introduction 1

1.2 Scope 3

1.3 Objective 4

1.4 Methodology 4

1.5 Research Tools 6

1.6 Chapterization 7

2 REVIEW OF LITERATURE 8 – 20

2.1 Conceptual Review 8

2.2 Empirical Literature 18

 INDUSTRY AND COMPANY
3 PROFILE 21 – 24

3.1 Industry Profile 21

3.2 Company Profile 22

DATA ANALYSIS AND

4 INTERPRETATION 25 - 49

4.1 Ratio Analysis 25

4.2 Liquidity Ratio 26

4.3 Solvency Ratio 30

4.4 Debt Equity Ratio 32

4.5 Proprietary Ratio 34

4.6 Profitability Ratio 36

4.7 Net Profit Ratio 38

 4.8 Operating Ratio 40

4.9 Activity Ratio 42

4.10 Working Capital 44

Turnover Ratio

5 FINDINGS, SUGGESTIONS &

CONCLUSION 50 – 51

5.1 Findings 50

5.2 Suggestions 51

5.3 Conclusion 51

BIBLOGRAPHY
52

ANNEXURE
53-56
LIST OF TABLES

TABLE NO: TITLE PAGE NO:

4.1 Table showing Current Ratio. 26

4.2 Table showing Quick Ratio. 28

4.3 Table showing Total Assets to Debt Ratio. 30

4.4 Table showing Debt Equity Ratio. 32

4.5 Table showing Proprietary Ratio. 34

4.6 Table showing Gross Profit Ratio. 36

4.7 Table showing Net Profit Ratio. 38

4.8 Table showing Operating Profit Ratio. 40

4.9 Table showing Fixed Assets Turnover Ratio. 42

4.10 Table showing Working Capital Turnover Ratio. 44

4.11 Table showing Comparative balance sheet of 46

2017-18 and 2016-17
4.12 Table showing Comparative balance sheet of 47
2018-19 and 2017-16.

4.13 Table showing Comparative balance sheet of 48

2019-20 and 2018-19.

4.14 Table showing Comparative balance sheet of 49

2020-21 and 2019-20.
 LIST OF CHARTS

FIGURE NO: TITLE PAGE NO:

4.1 Chart showing Current Ratio. 27

4.2 Chart showing Quick Ratio. 29

4.3 Chart showing Total Assets to Debt Ratio. 31

4.4 Chart showing Debt Equity Ratio. 33

4.5 Chart showing Proprietary Ratio. 35

4.6 Chart showing Gross Profit Ratio. 37

4.7 Chart showing Net Profit Ratio. 39

4.8 Chart showing Operating Profit Ratio. 41

4.9 Chart showing Fixed Assets Turnover Ratio. 43

4.10 Chart showing Working Capital Turnover Ratio. 45

 CHAPTER – 1

INTRODUCTION

1.1 INTRODUCTION
Finance is a term for matters regarding the management, creation, and studyof money
and investments.

Specifically, it deals with the questions of how and why an individual, company or
government acquires the money needed (called capital in the company context) and how
they spend or invest that money.

Finance is then often split per the following major categories: corporate finance,
personnel finance and public finance.

At the same time, and correspondingly, finance is about the overall "system" i.e., the
financial markets that allow the flow of money, via investments and other financial instruments
between and within these areas; this "flow" is facilitated by the financial services
sector.

A major focus within finance is thus investment management – called money

management for individuals, and asset management for institutions – and finance then
includes the associated activities of securities trading and stock broking, investment banking,
financial engineering, and risk management.

Financial statements

 Financial statements (or financial reports) are formal records of the financial activities
and position of a business, person, or other entity.

 Relevant financial information is presented in a structured manner and in a form which

is easy to understand.

 They typically include four basic financial statements accompanied by a management

discussion and analysis:

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 1) A balance sheet or statement of financial position, reports on a company's assets,
liabilities, and owner’s equity at a given point of time.

2) An income statement or profit and loss report (P&L report), (or statement of
comprehensive income, or statement of revenue & expense) reports on a company’s
income, expenses, and profits over a stated period.

3) These include sales and the various expenses incurred during the stated period.

4) A statement of change in equity or statement of equity, or statement of retained

earnings, reports on the changes in equity of the company over a stated period.

5) A cash flow statement reports on a company’s cash flow activities, particularly its
operating, investing and financing activities over a statedperiod.

Hindustan Unilever Limited

 Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever which is a

British-Dutch multinational company.
 It is headquartered in Mumbai, India.
 Its products include foods, beverages, cleaning agents, personnel care
products, water purifiers and Fast Moving Consumer Goods (FMCG)

 HUL was established in 1933 as Lever Brothers of United Kingdom and following a
merger of constituent groups in 1956, it was renamed 'Hindustan Lever Limited'.

 The company was renamed in June 2007 as ‘Hindustan Unilever Limited’

 As of 2019 Hindustan Unilever's portfolio had 35 product brands in 20 categories.

 The company has 18,000 employees and clocked sales of 34,619 crores in FY2017–
18.

 The company claims to be the largest company that the common people depend.

 But from far view this is true.

 As the company says there is not even a single house that does not use the
products of the company.

 Financial statement of Hindustan Unilever Limited is being analysed and inferred.

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1.2 SCOPE

 Financial statements are usually used by various stakeholders of the company.

 They use these data for knowing the return on investment, data about the shareholders
of the company, the assets and liabilities that the company have.

 All these information are presented in the financial statement.

 It is the responsibility of a company to prepare the financial statements with full

integrity and sincerity as these documents act as a reference for the prospectus
investors.

 Financial statements may be used by users for different purposes:

a) Owners and managers require financial statements to make important business

decisions that affect its continued operations. Financial analysis is then performed on
these statements to provide management with a more detailed understanding of the
figures.

b) These statements are also used as part of management's annual report to the
stockholders.

c) Employees also need these reports in making collective bargaining

agreements (CBA) with the management, in the case of labor union or for individuals in
discussing their compensation, promotion and rankings.

d) Prospective investors make use of financial statements to assess the viability of

investing in a business. Financial analyses are often used by investors and are
prepared by professionals (financial analysts), thus providing them with the basis for
making investment decisions.

e) Financial institutions (banks and other lending companies) use them to decide whether
to grant a company with fresh working capital or extend debt securities (such as a
long-term bank loan or debentures) to finance expansion and other significant
expenditures

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1.3 OBJECTIVES

 The objective of this project is:

 To analyse the overall financial performance of Hindustan UnileverLimited.
 To evaluate the profitability of Hindustan Unilever Limited.

 To determine the liquidity position of the company.

1.4 METHODOLOGY

Research methodology simply refers to the practical “how” of any given piece of research.

 More specifically, it’s about how a researcher systematically designs a study to ensure
valid and reliable results that address the research aims and objectives.

 For example, how did the researcher go about deciding:

What data to collect (and what data to ignore)

 Who to collect it from (in research, this is called “sampling design”)

 How to collect it (this is called “data collection methods”)

 How to analyse it (this is called “data analysis methods”)

Secondary data

 It is the data that has already been collected through primary sources and made readily
available for researchers to use for their own research.

 It is a type of data that has already been collected in the past.

 A researcher may have collected the data for a particular project and then made it available
to be used by another researcher.

 The data may also have been collected for general use with no specific research purpose like
in the case of the national census.

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Sources of secondary data include books, personal sources, journal, newspaper, website,
government record etc.

 Secondary data are known to be readily available compared to that of primary data.

 It requires very little research and need for manpower to use these sources.

Descriptive research design is what is being used here.

 Descriptive research is defined as a research method that describes the characteristics

of the populationor phenomenon studied.

 This methodology focuses more on the “what” of the research subject than the “why” of
the research subject.

 The descriptive research method primarily focuses on describing the nature of a

demographic segment, without focusing on “why” a particular phenomenon occurs.

 In other words, it “describes” the subject of the research, without covering “why” it
happens.

Financial statements of 5 years are being used here. These includes,

 Financial Statement of 2020-21 (Previous year)

 Financial Statement of 2019-20

 Financial Statement of 2018-19

 Financial Statement of 2017-18

 Financial Statement of 2016-17

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1.5 Research Tools

Analytical research tools are being used to analyse the data gathered.
 The analytical research tool answers the “WHY” factor in the research.
 It finds out the reason for the problem.

Ratio analysis is used in this project to compare and study the performance of the company.
 Ratio analysis gives a much compressed and clear representation of the relationship
between two variables.
 Ratio analysis is a quantitative method of gaining insight into a company’s liquidity,
operational efficiency, and profitability by studying its financial statements such as the
balance sheet and income statement.
 Ratio analysis is a cornerstone of fundamental equity analysis.

Common size financial statement is another tool used here.

 A common size financial statement displays items as a percentage of a common base
figure, total sales revenue, for example.
 This type of financial statement allows for easy analysis between companies, or
between periods, for the same company.
 However, if the companies use different accounting methods, any comparison may not
be accurate.

Comparative financial statement is the next tool used here.

 A comparative statement is a document used to compare a particular financial
statement with prior period statements.
 Previous financials are presented alongside the latest figures in side-by-side columns,
enabling investors to identify trends, track a company’s progress and compare it with
industry rivals.

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1.6 CHAPTERIZATION

Chapter 1: Introduction

Chapter 2: Review of Literature

Chapter 3: Industry and Company profile

Chapter 4: Data analysis and Interpretation

Chapter 5: Findings, Suggestions and conclusion

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 CHAPTER- 2

REVIEW OF LITERATURE

2.1 CONCEPTUAL REVIEW

 Financial analysis is the process of identifying the financial strength and weakness of
the phone buy property establishment relationship between the items of balance sheet
and the profit and loss account.

 The firm’s financial analysis means the analysis and interpretation of financial
statement.

 A financial statement is a collection of data organized according to the logical and

consistent accounting procedures.

 It’s a process to convey and understanding of some financial aspects of business firm.

 It may show a position at moment in time, as in the case of balance sheet or may
reveal a series of activities over a given period of time, as in the case of income
statement.

Thus financial statement generally refers to the two statements.

1. The position statement or balance sheet

2. The income statement or profit and loss account

These statements are used to convey to management and other investment outsiders
the profitability and financial position of a firm.

The purpose of financial analysis is to diagnose the information contained in financial

statement.

Financial statement analysis is an attempt to determine the significant and meaning of the
financial statement data, so that forecast may be made of the future earnings ability
to pay interest and debt maturities .

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Tools or Techniques of Financial Statements

 Comparative financial statement

 Ratio analysis

2.1.1 Comparative financial statement

 A Comparative balance sheet analysis is a simple way of comparing the data on

two or more balance sheet that have different dates. We can compare several
balance sheets from a bank, each of which has the same data but on different
months or different years.

 For example, we can analyse the month-end totals for each month in a year or
year-end totals over several years to chart market trends and how this affects
your company’s growth.

 A comparative balance sheet analysis is a method of analysing a company’s

balance sheet over time to identify changes and trends.

 Public companies are required to include the information needed for a

comparative balance sheet analysis in their quarterly and annual reports to the
SEC, though it can be useful to pull together more data on its’ own for a longer-
term analysis.

 Comparative balance sheet is a balance sheet which provides financial figures of

Assets, Liability and equity for the “ two or more periods of the same company” or
“ two or more than two company of same industry” or “two or more subsidiaries of
same company” at the same page format so that this can be easily
understandable and easy to analyse.

2.1.2 Ratio Analysis

 Ratio analysis is a widely used Technique of analysing financial statements.

 An analysis of financial statements with the help of ratios is termed as ratio

analysis.
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  It is a systematic use of accounting ratios to interpret the financial statements for
studying the financial position and performance of an enterprise.

 Ratio analysis was perhaps the financial tools developed to analysis and interpret
the financial statement and is still used widely for this purpose.

 Ratio analysis is defined as the systematic use of accounting ratios on order to

weigh and performance of the f irm.

 It is the process of determining and interpreting various ratios for helping in certain
decisions.

 Meaning and nature of ratio analysis is simply one number expressed in terms of
another number.

 It refers to numerical relationship between two figures.

 It is obtained by one figure by the other.

 According ratios are the relationship in mathematical terms between two related
figures in the financial statements, eg: ratio between current asset and current
liabilities.

2.1.3 Classification of Ratios

 Accounting ratio can be classified in several in several ways in general ; accounting

ratios may be classified on the following basis :

2.1.3.1 Liquidity Ratio

2.1.3.2 Leverage Ratio

2.1.3.3 Activity Ratio

2.1.3.4 Profitability Ratio

2.1.3.5 Market Test Ratio

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2.1.3.1 Liquidity Ratio

 The term liquidity refers to the firm’s ability to pay its current liabilities out of its
current assets.

 Liquidity ratios are used to measure the liquidity position or short term debt paying
ability of a firm.

 These ratios are highly useful to creditors and commercial banks that provide short
term credit.

 Important liquidity ratios are:

1. Current Ratio

 Current ratio is defined as the ratio of current assets to current liabilities.

 It shows the relationship between total current assets and total current liabilities.

 It is the measure of firm’s short term solvency.

 That is, its ability to meet short-term obligations. In sound business a current ratio
of 2:1 is considered as an ideal one.
Current assets
Current ratio =
Current liabilities

2. Absolute liquid ratio or cash ratio

 Cash ratio of absolute liquid ratio shows the relationship between cash and current
liabilities.

 Absolute liquid asset includes cash in hand and cash at bank and marketable
securities are temporary investments.

 The acceptable norms for this ratio is 0.75:1

Cash and Bank+Short term securities
Absolute Liquid ratio =
Current Liabilities

3. Liquid ratio or quick ratio

 Liquid ratio is the ratio of liquid assets to current liabilities.

 It establishes the relationship between quick Assets and current liabilities.

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  It is a measure of instant debt paying ability of the business enterprise.

 It is also called acid test ratio.

 An acid test ratio of 1:1 is considered to be satisfactory as a firm can easily meet
all itscurrent liabilities.

 Inventory are considered to be less liquid. It is computed as follows;

Liquid assets
Liquid ratio =
Current liabilities

2.1.3.2 Leverage Ratio

 The term solvency means the ability of a firm to meet its long-term obligations.

 The long-term creditors of firms are primary interested in knowing firms ability to
pay interest on long term borrowings, repayment of principle amount of maturity
etc.

 These ratios are described as follows

1. Debt equity ratio

 It shows the relationship between total debt and owned debt. It is the ratio of the amount
invested by the shareholders.
 This ratio reflects the relative claim of shareholders and creditors against the assets of the
company.
Debt
Debt equity ratio=
Equity

2. Fixed assets to net worth ratio

 It measures the percentage of fixed assets to network.
 This ratio helps to analysis the long term solvency of the firm
Fixed Asset
Fixed assets to net worth ratio=
Shareholders Fund

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3. Proprietary ratio
 Proprietary ratio establishes the relationship between shareholders or proprietors fund and
total assets.
 This ratio shows how much funds have been contributed by the shareholders in the total
assets of the firm.
 Proprietary ratio is also known as equity ratio or net- worth ratio.
 It is computed as:
Shareholders fund
Proprietary ratio =
Total asset

4. Solvency ratio

 This ratio expresses the relationship between total Assets and total liabilities of a
business.

 It measures the solvency of the business.

 This ratio is known as solvencyratio.

 This ratio is generally expressed as a proportion.

 The following formula is used for computing solvency and ratio.

Total assets

Solvency Ratio =

Total Debt

5. Fixed Asset Ratio

 It is the ratio of fixed assets to long-term funds or capital employed.

Fixed asset (after depreciation)

Fixed Asset Ratio =

Long term funds

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2.1.3.3 Activity Ratio

 These ratio indicate efficiency in Asset Management.

 These ratios are also known as efficiency ratios or performance ratios of assets
utilization ratios. The ratio indicates the cash elasticity of current assets.

 This ratio indicates the speed with which the resources are turned over or
converted into cash.

 These ratios are also known as turnover ratios.

 It should be noted that turnover ratios are always expressed in number of times,
i.e., rate of turning over. Important activity or turnover ratios are discussed as
follows:

1. Inventory Turnover Ratio

 Inventory or stock turnover ratio shows the relationship between cost of goods
sold and average inventory on stock. It is also called merchandise turnover ratio.

 It is obtained by dividing cost of goods sold by average stock. Stock turnover ratio
iscomputed by the following formula:
Cost of Goods sold
Inventory Turnover Ratio =
Average Stock

2. Debtors turnover ratio

 Debtors turnover ratio explain the relationship between net credit sales and
average debtors including bills receivable.

 This ratio shows how quickly debtors are realized or converted into cash. It is also
known as receivables turnover ratio.

 The following formula used for calculating debtors turnover ratio:

Net Credit sales

Debtors turnover ratio =
Average debtors including B/R

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3. Creditors turnover ratio

 It shows the relationship between net credit purchase and average creditors
including bills payable.

 This ratio indicates the number of times the creditors are paid.

 It is also called payable turnover ratio, it is computed by the following formula:

Net credit purchase

Creditors turnover ratio =

Average creditors including B/P

4. Working capital turnover ratio

 Current asset will change with change in sales. This means working capital is
related with States.

 The relation between sales and working capital is called working capital turnover
ratio.

 This ratio shows how many times the working capital is turned over to produce
sales.

 Working capital turnover ratio is computed by the following formula :

Net Sales

Working capital turnover ratio =

Working capital

5. Fixed asset turnover ratio

 For knowing whether fixed asset or effectively utilized or not, fixed asset turnover
ratio is used.

 It measures the efficiency with which a firm is utilising it’s fixed assets in producing
sales. It is computed as follows:

Net sales

Fixed asset turnover ratio =

Net fixed asset

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2.1.3.4 Profitability ratios

 The term profitability refers to the ability of a firm to earn income.

 The profitability of a firm can be easily measured by its profitability ratios.

 Profitability ratios are always based on sales .Important general profitability ratio
are discussed below;

1. Gross profit ratio

 This is the ratio of gross profit to sales expressed as percentage.

 It is also known asgross margin.

 It is calculated as follows:

Gross profit

G/P ratio = x 100

Net profit

2. Operating ratio

 Operating ratio expresses the relationship between operating cost and sales.

 It indicates the overall efficiency in operating the business.

 The formula for computing operating ratio is as follows:

Cost of goods sold+Operating expenses

Operating ratio = x 100

Net sales

3. Operating profit ratio

 Operating profit ratio explain the relationship between operating profit and net
sales.

 It is calculated by the following formula:

Operating profit

Operating profit ratio = x 100

Net sales

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4. Net profit ratio

 Net profit ratio is the ratio of net profit earned by a business and its net sales.

 Itmeasures overall profitability.

 It is calculated as follows:

Net profit

Net profit ratio = x 100

Net sales

5. Return on investment (ROI)

 ROI measures the overall profitability.

 It establishes the relationship betweenprofit or return and investment.

 It is also called the accounting rate of return.

 It is computed as follows:

Net profit before interest and tax

ROI = x 100

Capital employed

6. Return on shareholder’s fund

 This is the ratio of net profit to shareholders fund or net-worth.

 It measures theprofitability from the shareholders point of view.
 It is calculated as follows:
Net profit after interest and tax

Return on shareholder’s fund = x 100

Capital employed

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2.2 EMPIRICAL LITERATURE

Empirical literature review examines past empirical studies to answer a particular

research under study. It is an article which reports research based on actual observation
or experiments of researchers who have undertaken their study in the past.

Andrew & Schmidgall (1993):

The researchers has classified financial ratios into five categories “liquidity ratios, solvency
ratios, activity ratios, profitability ratios, and operating ratios”. They indicated that financial
ratios themselves do not provide valuable information about a firm’s performance,
Andrew (1993) in his study conducted on automobile industry investigated the leverage
ratio of companies and suggested that a value-maximizing capital structure.

Zopounidis (2000):

The researcher in his study has proposed methodological framework based on financial
ratio analyses for estimating small and medium size enterprises performance, Hsieh and
Wang (2001) in their study examined and stressed the need of selecting relevant financial
ratios for the purpose of analysis. They proposed new approach for finding useful
financial ratio and also emphasized that industry differs in product, in size and have its
own unique business practices and internal and external environment thus financial ratio
analysis should be according to industry which suit it the most.

Gopinathan (2009):

The researcher have presented that the financial ratios analysis can spot better
investment options for investors as the ratio analysis measures various aspects of the
performance and analyzes fundamentals of a company or an institution.

Goel (2012):

The study found that there is no relationship between liquidity and solvency. He also
found that the relatively low liquidity observed in firms was important to increase
profitability. It is also found that increased profitability from decreased solvency can be
offset by increased solvency.The relationship between liquidity and solvency, their
influence has been measured, using Correlation and Regression Analysis and then
tested using ANOVA. The researcher conducted the project with HUL for a period from
2006 to 2011 to measure the relative liquidity and solvency level of the company.

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Bhaskar Bagchie & J. C. (2012):
The study revealed that the better explanatory power of the fixed effects LSDV model
than that of the pooled OLS model. The study also concluded that DTA, AD, AC and AI
are negatively associated with firm’s profitability as quantified by ROTA. The study also
revealed that when they have assets the impact of all explanatory variables on ROI it,
CCC it, DTA and AC are negatively associated with ROI. The results of their study are in
line with the findings of Deloof (2003) and Padachi (2006), who found a strong negative
relationship between the measures of working capital management with corporate
profitability using a fixed effect model. They have empirically investigated the effect of
working capital management on firm’s profitability as measured by return on total assets
and return on investment. They have employed two models of panel data regression
analysis-fixed effect LSDV and pooled OLS model.

Khamrui (2012):

The study revealed that both the companies in terms of profitability & liquidity position
have a significant impact on profitability. Descriptive statistics disclose that liquidity
position has significant impact on profitability. Multiple regression tests confirm a higher
degree of association between the liquidity and profitability. The study was conducted on
HUL. The researcher has taken into consideration two variables, i.e. dependent &
independent. The experts have done the comparison between the various profitability
ratios (as independent variable) and Return on Investment (ROI) as the dependent 38
variable.

Swetha Mehrota (2013):

The study reveals that negative working capital is a sign of managerial efficiency in a
business with low inventory and accounts receivables. This means they can generate
cash so quickly as they actually have a negative working capital. The study also reveals
that in this company, products are delivered and sold to the customer before the company
even pays for them. The study also concluded that developments in SCM, ERP &
implementation of JIT have made the firms leaner & hence now it is not possible to
raise funds viathe inventory. The study covers the period of five years from 2007 to 2012.
The study was conducted by the researcher on HUL. In this study, traditional methods of
data analysis and ratio analysis as tools of financial statement analysis for examining the
degree of efficiency of working capital management have been adopted during the study
period.

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Joshi (2013):

The study conducted by the researcher reveals that there is a vast difference in Net
Operating Profit Ratio, Net Profit, PAT to net worth Ratio and Cash ratio to Net worth
Ratio of HUL. The study was conducted on the basis ofthe profitability ratios to evaluate
the profitability of the company. The study was conducted for a period from 2008 to 2012.
The expert has used the statistical tools like Mean and ANOVA.

Paswan (2013):

The study proved that the company was able to repay its debts during the study period. It
also shows more use of proprietary funds in acquiring total assets. The study was
conducted for a period of 2005-06 to 2010-11. The study concentrated on various
accounting ratios (Current ratio, Quick ratio, Proprietary ratio, Debt equity ratio, etc). The
expert has used the tools like Average, Standard Deviation and Coefficient of variation.
Titto Varghese (2014):
It can be concluded that there is no significant 47 difference in the profitability and
liquidity position of the company. The researchers have conducted the study to measure
impact of working capital on the profitability of HUL Ltd. for a period of 10 years from
2003 to 2013. The researchers have used ratio analysis technique for making the
analysis of liquidity profitability relationship of HUL. The study also concluded that the
profitability position was strong were as the liquidity position was not satisfactory.

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 CHAPTER-3

INDUSTRY AND COMPANY PROFILE

3.1 INDUSTRY PROFILE

3.1.1 FAST MOVING CONSUMER GOODS COMPANY

 Fast-moving consumer goods (FMCG), also known as consumer packaged goods

(CPG), are products that are sold quickly and at a relatively low cost.

 Examples include non-durable household goods such as packaged goods, beverages,

toiletries, candies, cosmetics, over the counter drugs, dry goods, and other
consumables.

 FMCG is the most common acronym in use across most of Europe, Asia, and
Oceania, while CPG is used more frequently in the Americas.

 The companies those who sell these products that are needed for the
common people regularly are known as FMCG companies.

 They are the backbone of an economy as they sales and the contribution to

the economy through the sales are very enormous that they are capable of

making very big economic changes.

 Top 5 FMCG Companies in India are as follows:

1. Hindustan Unilever Limited

2. India Tobacco Company (ITC) Limited

3. Nestle India Limited

4. Britannia Industries Limited

5. Godrej Consumer Products Limited

 These are the companies in India that produces fast moving consumer goods or
goods that are used daily by the people commonly.

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3.2 COMPANY PROFILE

3.2.1 HINDUSTAN UNILEVER LIMITED

 Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
company with a heritage of over 80 years in India.

 It’s heaquartered in Mumbai, India.

 It’s products include foods, beverage, cleaning agents, personal care products, water
purifies and other fast moving consumer goods.

 It was founded in the year 1933, 89 years ago.

 The CEO of the company is Sanjiv Mehta.

 On any given day, nine out of ten Indian households use our products to feel good,
look good and get more out of life.

 This gives the company a unique opportunity to build a brighter future.

 The company has over 35 brands spanning 20 distinct categories such as soaps,
detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee,
packaged foods, ice cream, and water purifiers, the Company is a part of the everyday
life of millions of consumers across India.

 Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin,
Wheel, Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk,
Pepsodent, Closeup,Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

 The Company has about 21,000 employees and has sales of INR 38,273 crores (the
financial year 2019-20).

 HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home
Care, Personal Care and Refreshment products with sales in over 190 countries and
an annual sales turnover of €52 billion in 2019.

 Unilever has over 67% shareholding in HUL.

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3.2.2 VISION

 The vision of the company is to grow its business, while decoupling the environmental
footprint from its growth and increasing its positive social impact.

 The business of HUL has always been driven by a sense of purpose, a thread that
connects the company to its founding companies and their social missions to improve
health, hygiene and livelihoods in the communities.

 The Unilever Sustainable Living Plan, launched in 2010, laid the blueprint for achieving
the strategy.

 The company continues to work towards the ambitious targets they have set
themselves for halving the environmental impact, improving the health and wellbeing of
1 billion people, and enhancing the livelihoods of millions.

 In short the vision of the company is to be a leader in sustainable business.

 The l demonstrates how their purpose-led, future-fit model drives superior performance
delivering consistent, competitive, profitable and responsible growth.

3.2.3 HISTORY

 “In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight
soap bars, embossed with the words "Made in England by Lever Brothers". With it,
began an era of marketing branded Fast Moving Consumer Goods (FMCG).” This is
what the company claims on its birth. This is more or less the genuine start the
company had.

 The start was followed by Lifebuoy in 1895 and other famous brandslike Pears, Lux
and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the
market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company, followed by Lever Brothers India Limited (1933) and United
Traders Limited (1935). These three companies merged to form HUL in November
1956; HUL offered 10% of its equity to the Indian public, being the first among the
foreign subsidiaries to do so.

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 Unilever now holds 67.25% equity in the company. The rest of the shareholding is
distributed among about three lakh individual shareholders and financialinstitutions

 Since the very early years, HUL has vigorously responded to the stimulus of economic
growth. The growth process has been accompanied by judicious diversification, always
in line with Indian opinions and aspirations. HUL launched a slew of new business
initiatives in the early part of 2000’s.

 Project Shakti was started in 2001. It is a rural initiative that targets small villages
populated by less than 5000 individuals. It is a unique win-win initiative that catalyzes
rural affluence even as it benefits business. Currently, there are over 45,000 Shakti
entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3
million homes.

 On 17th October 2008, HUL completed 75 years of corporate existence in India. In

January 2010, the HUL head office shifted from the landmark Lever House, at Backbay
Reclamation, Mumbai to the new campus in Andheri (E), Mumbai. HUL completed 80
years of corporate existence in India on October 17th, 2013. By the time the company
had acquired more than 30 independent brands. This was the top number of brands a
company had at the time. The acquisition of Horlicks was the last brand that HUL
acquired.

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 CHAPTER- 4

DATA ANALYSIS AND INTERPRETATION

4.1 RATIO ANALYSIS

Ratio analysis is a quantitative method of gaining insight into a company's liquidity,

operational efficiency, and profitability by studying its financial statements such as the
balance sheet and income statement.

Ratio analysis is a cornerstone of fundamental equity analysis.

 Ratio analysis compares line-item data from a company's financial statements to

reveal insights regarding profitability, liquidity, operational efficiency, and solvency.

 Ratio analysis can mark how a company is performing over time, while comparing
a company to another within the same industry or sector.

 While ratios offer useful insight into a company, they should be paired with other
metrics, to obtain a broader picture of a company's financial health.

Ratio analysis can predict a company's future performance—for better or worse.

Successful companies generally boast solid ratios in all areas, where any sudden hint of
weakness in one area may spark a significant stock sell-off.

In other words Ratio analysis is a quantitative procedure of obtaining a look into a firm’s
functional efficiency, liquidity, revenues, and profitability by analysing its financial records
and statements.

Ratio analysis is a very important factor that will help in doing an analysis of the
fundamentals of equity.

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4.2 Liquidity Ratio:

4.2.1 Current Ratio (ideal ratio = 2:1)

Current Ratio = Current asset /Current liability

Table 4.1: Showing current ratio

Year Current asset Current liability Current ratio

(in crores) (in crores)
2016-17 9365 7202 1.30:1
2017-18 11139 8636 1.28:1
2018-19 11374 8353 1.36:1
2019-20 11908 9140 1.30:1
2020-21 13640 10841 1.25:1

Source: (Secondary Data)

The ideal ratio is 2:1. All the five ratios are below this range. The highest is in the year of
2018-19. The current year ratio is 1.25:1. The firm is in an average condition to meet the
short-term debts.

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 Chart 4.2.1: Chart showing changes in current ratio

Current Ratio
1.6

1.4

1.2

0.8

0.6

0.4

0.2
2016-17 2017-18 2018-19 2019-20 2020-21

Current Ratio

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4.2.2 Quick Ratio (Ideal Ratio=1:1)

Quick Ratio = Quick assets/Current liabilities

Table 4.2: Table showing Quick Ratio

Year Quick Assets Current Assets Quick Ratio

(in crores) (in crores)
2016-17 7003 7202 0.97:1
2017-18 8780 8636 1.01:1
2018-19 8952 8353 1.07:1
2019-20 9272 9140 1.01:1
2020-21 10257 10841 0.94:1

Source: (Secondary Data)

The ideal ratio is 1:1. In all years almost the ratio is satisfactory. The lowest is in the year of
2016-17. The highest is the year of 2018-19. For the current year is 0.94:1, which is just
above the ideal ratio.

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 Graph 4.2.2: Graph showing Quick Ratio

Quick Ratio
1.2

0.8

0.6

0.4

0.2

0
2016-17 2017-18 2018-19 2019-20 2020-21

Quick Ratio

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4.3 Solvency Ratios

4.3.1 Total Assets to Debt Ratio (ideal ratio=1:1)

Total Assets to Debt Ratio = Total Assets/ Total Debt

Table 4.3.1: Table showing Total Assets to Debt Ratio

Year Total Assets Total Debt Total Assets to

(in crores) (in crores) Debt Ratio
2016-17 14751 8321 1.77:1
2017-18 17146 10074 1.70:1
2018-19 17865 10206 1.75:1
2019-20 19602 11571 1.69:1
2020-21 68116 20682 3.29:1

Source: (Secondary Report)

The standard ratio is not fixed. The ratio indicates the degree of solvency of a business.
The current year ratio is 3.29:1. The company is solvent because assets are sufficiently
more than liabilities. Therefore, the company is financially sound.

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 Graph 4.3.1: Graph showing Total Assets to Debt Ratio

Total Assets to Debt Ratio

3.5

2.5

1.5

0.5

0
2016-17 2017-18 2018-19 2019-20 2020-21

Total Assets to Debt Ratio

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4.4 Debt Equity Ratio (ideal ratio = 2:1)

Debt Equity Ratio = Total Debt / Equity

Table 4.4: Table showing Debt Equity Ratio

Year Total Debt Equity Debt Equity

(in crores) (in crores) Ratio
2016-17 8321 6430 1.29:1
2017-18 10074 7072 1.42:1
2018-19 10206 7659 1.33:1
2019-20 11571 8031 1.44:1
2020-21 20682 47434 0.43:1

Source: (Secondary Report)

The ratio for the current year is 0.43:1. This indicates that for every 1 rupee of equity,
there is a debt worth 0.43 rupees. The ratio is lesser the standard of 1:1.

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 Graph 4.4: Graph showing Debt Equity Ratio

Debt Equity Ratio

1.5

1.3

1.1

0.9

0.7

0.5

0.3

0.1
2016-17 2017-18 2018-19 2019-20 2020-21

Debt Equity Ratio

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4.5 Proprietary Ratio (ideal ratio =50%)

Proprietary Ratio = Shareholder’s Fund/Total Asset

Table 4.5: Table showing Proprietary Ratio

Year Shareholder’s Total Asset Proprietary Ratio

Fund (in crores) (in crores) %
2016-17 6490 14751 43.9
2017-18 7075 17149 41.2
2018-19 7659 17865 42.8
2019-20 8031 19602 40.9
2020-21 47434 68116 69.6

Source: (Secondary Report)

The ideal ratio is 50%. All the ratios are around 40%, except 2020-21 69.6% is very
high compared to ideal ratio. The current year ratio is 69.6% which is much satisfactory.

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 Graph 4.5: Graph showing Proprietary Ratio

Proprietary Ratio
44.5
44
43.5
43
42.5
42
41.5
41
40.5
40
39.5
39
2016-17 2017-18 2018-19 2019-20 2020-21

Proprietary Ratio

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4.6 Profitability Ratios

4.6.1 Gross Profit Ratio

Gross Profit Ratio = (Gross Profit/Net Sales) x100

Table 4.6.1: Table showing Gross Profit Ratio

Year Gross Profit Net Sales Gross Profit Ratio

(in crores) (in crores) %
2016-17 6792 31890 21.29
2017-18 7763 34525 22.48
2018-19 9046 38224 23.66
2019-20 10030 38785 25.86
2020-21 11502 45996 25.00

Source: (Secondary Report)

The ideal ratio is 25%. The Gross Profit showed an increasing rate which is a positive
sign. The ratio for the current year is 23.06%, which is the is the highest among the five
years.

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 Graph 4.6.1: Graph showing Gross Profit Ratio

Gross Profit
30

25

20

15

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Gross Profit

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4.7 Net Profit Ratio

Net Profit Ratio = (Net Profit/Sales) x 100

Table 4.7: Table showing Net Profit Ratio

Year Net Profit Sales Net Profit Ratio

(in crores) (in crores) %
2016-17 4490 31890 14.07
2017-18 5237 34525 15.16
2018-19 6036 38224 15.79
2019-20 6738 38785 17.37
2020-21 7954 45996 17.29

Source: (Secondary Report)

Net Profit Ratio also shows an increasing trend. It is the moderate in the current
year. An increasing ratio is satisfactory. The trend also is satisfactory.

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 Graph 4.7: Line showing Net Profit Ratio

Net Profit Ratio

18

17.5

17

16.5

16

15.5

15

14.5

14
2016-17 2017-18 2018-19 2019-20 2020-21

Net Profit Ratio

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4.8 Operating Ratio

Operating ratio= (Operating profit /Net Sales) x 100

Table 4.8: Table showing Operating Ratio

Year Operating profit Net sales Operating ratio

(in crores) (in crores) %

2016-17 25744 31890 80.72

2017-18 27438 34525 79.47
2018-19 29802 38224 77.96
2019-20 29575 38785 76.25
2020-21 35407 45996 76.97

Source: (Secondary Report)

The Proprietory ratio showed an decreasing rate which is a negative sign. The ratio for the
current year is 76.97%, which is the is the second lowest among the five years.

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 Graph 4.8: Area showing Proprietory Ratio

Proprietory Ratio
82

81

80

79

78

77

76

75

74
2016-17 2017-18 2018-19 2019-20 2020-21

Proprietory Ratio

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4.9 Activity Ratio
4.9.1 Fixed Assets Turnover Ratio

Fixed Assets Turnover Ratio = Net Sales/Fixed Assets

Table 4.9.1: Table showing Fixed Assets Turnover Ratio

Year Net Sales Fixed Assets Fixed Assets

(in crores) (in crores) Turnover Ratio
2016-17 31890 4227 7.54
2017-18 34525 4572 7.55
2018-19 38224 4716 8.11
2019-20 38785 5569 6.96
2020-21 45996 51560 0.89

Source: (Secondary Data)

The ideal ratio is mixed in times. Fixed Assets Turnover Ratio is lesser than the
standard. This indicates a lesser utilization of fixed assets in generating sales.
s

42 | P a g e
Graph 4.9.1: Pie Chart showing Fixed Assets Turnover Ratio

Fixed Asset Turnover Ratio

2016-17 2017-18 2018-19 2019-20 2020-21

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4.10 Working Capital Turnover Ratio (ideal ratio = 7 or 8 times)

Working Capital Turnover Ratio = Net Sales/Working Capital

Table 4.10: Table showing Working Capital Turnover Ratio

Year Net Sales Working Capital Working Capital

(in crores) (in crores) Turnover Ratio
2016-17 31890 2163 14.74
2017-18 34525 2506 13.78
2018-19 38224 3021 12.65
2019-20 38785 2804 13.83
2020-21 45996 2799 16.43

Source: (Secondary Data)

The ideal ratio is 7 or 8 times. Higher the ratio the better is the utilization of working
capital. This is showed out. The ratio for the current year is 16.43 times, which is above
the ideal ratio. s

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 Graph 4.10: Graph showing Working Capital Turnover Ratio

Working Capital Turnover Ratio

18

16

14

12

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Working Capital Turnover Ratio

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Comparative balance sheet

Table 4.11: Table showing comparative balance sheet of the financial year 2017-18 and
2016-17

Particulars 2017-18 2016-17 Increase or Increase or

(in crores) (in crores) Decrease decrease
(in crores) %

Total Share Capital 216.00 216.00 0.00 0.00

Total Reserves and 6,859.00 6,274.00 585.00 9.32

Surplus

Total Shareholders 7,075.00 6,490.00 585.00 9.01

funds

Total Non- Current 1,438.00 1,059.00 379.00 35.79

liabilities

Total Current 8,636.00 7,202.00 1,434.00 19.91

Liabilities

Total Capital 17,149.00 14,751.00 2,398.00

and Liabilities

Total Fixed 4,572.00 4,227.00 347.00 8.21

Assets

Total Non-Current 6,010.00 5,386.00 624.00 11.59

Assets

Total Current Assets 11,139.00 9,365.00 1,774.00 18.94

Total Assets 17,149.00 14,751.00 2,398.00

In the financial year of 2017-18 there was an increase of 11.59% increase in the non-
current assets of the company. The company also showed a no decrease. The current
assets had an increase of 18.94% which included trade receivables also. Overall it
showed an increase of 18.94% in current assets.
46 | P a g e
Table 4.12: Table showing comparative balance for the financial year 2018-19 and
2017-18

Particulars 2018-19 2017-18 Increase or Increase or

(in crores) (in crores) Decrease Decrease
(in crores) %

Total Share Capital 216.00 216.00 0.00 0.00

Total Reserves and 7,443.00 6,859.00 584.00 8.51

Surplus

Total Shareholders 7,659 7,075.00 584.00 8.25

funds

Total Non- Current 1,853.00 1,438.00 415.00 28.86

liabilities

Total Current 8,353.00 8,636.00 (283.00) 3.28

Liabilities

Total Capital and 17,865.00 17,149.00 716.00

Liabilities

Total Fixed 4,716.00 4,572.00 144.00 3.14

Assets

Total Non-Current 6,491.00 6,010.00 481.00 8.00

Assets

Total Current Assets 11,374.00 11,139.00 235 2.11

Total Assets 17,865.00 17,149.00 716

During the financial year 2018-19 the Non-current assets increased by 8 %. Total current
liabilities is also decreased by 3.28% which is a positive sign. The Total capital and
liabilities also increased by 716cr.

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Table 4.13: Table showing the comparative balance sheet of the financial year 2019-20
and 2018-19

Particulars 2019-20 2018-19 Increase or Increase or

(in crores) (in crores) decrease decrease
(in crores) %

Total Share Capital 216.00 216.00 0.00 0.00

Total Reserves and 7,815.00 7,443.00 372.00 5.00

Surplus

Total Shareholders 8,031.00 7,659.00 372.00 4.86

funds

Total Non- Current 2,467.00 1,853.00 614.00 33.13

liabilities

Total Current 9,104.00 8,353.00 751.00 9.00

Liabilities

Total Capital 19,602.00 17,865.00 1,737.00

and Liabilities

Total Fixed 5,569.00 4,716.00 853.00 18.09

Assets

Total Non-Current 7,694.00 6,491.00 1,203.00 18.53

Assets

Total Current Assets 11,908.00 11,374.00 534.00 4.69

Total Assets 19,602.00 17,865.00 1,737.00

In 2019-20 the non-current assets increased by 18.53% which amounts to 1203crores.

There was a total increase of almost 1737crores in total assets. There was a total
increase of 9.72% in the total capital and liabilities.

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Table 4.14: Table showing comparative balance sheet of the financial year 2020-21
and 2019-20

Particulars 2020-21 2019-20 Increase or Increase or

(in crores) (in crores) decrease decrease
(in crores) %

Total Share Capital 235.00 216.00 19.00 8.80

Total Reserves and 47,199.00 7,815.00 39,384.00 503.95

Surplus

Total Shareholders 47,434.00 8,031.00 39,403.00 490.63

funds

Total Non- Current 9,841.00 2,467.00 7,374.00 298.91

liabilities

Total Current 10,841.00 9,104.00 1,737.00 19.08

Liabilities

Total Capital and 68,116.00 19,602.00 48,514.00

Liabilities

Total Fixed 51,650.00 5,569.00 46,081.00 827.46

Assets

Total Non-Current 54,476.00 7,694.00 46.782.00 608.03

Assets

Total Current Assets 13,640.00 11,908.00 1,732.00 14.54

Total Assets 68,116.00 19,602.00 48,514.00

In 2020-21 non-current assets increased by 16.63%. Current liabilities showed a steady

increase of almost 29.45%. This shows an increased efficiency of the company in the
present year. Therefore, the total current assets was increased by 14.94%.
49 | P a g e
 CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSIONS

5.1 FINDINGS

 The company showed a gradual increase in its current ratio. Current ratio of the last
year is satisfactory. It is less than the ideal ratio 2:1. Compared to the trend of the
last 5 years the present year shows a decrease which stands out.

 The asset to debt ratio is almost consistent for the past 4 years, which adds a
positive note to the financial stability of the company. It was the lowest in2015-16.

 The debt equity ratio was above the ideal ratio 2:1 in the financial year of 2015-16.
The ratio for the current year is satisfactory.

 The company establishes its increasing growth in each year. This is clear as we
check the net profit ratio of the last 5 years. It shows an increasing trend over
years.

 The stock turnover ratio also shows an increasing trend for the past four years but
for 2019-20 it was low compared to 2018-19.

 The comparative statement of 2016-17 and 2015-16 show that there was an
increase of 739cr in liabilities and at the same time assets increased by 921cr.
This leads to a net positive increase of 192cr.

 The comparative statement of 2017-18 and 2016-17 show that there was an
increase of 1621cr in liabilities and the assets showed an increase of 2156cr.
Hence shows a net increase of 535cr.

 The comparative statement of 2018-19 and 2017-18 show that there was an
increase of 183cr in liabilities. The current liabilities showed a decrease of 262cr.
The assets increased by 767cr.

 The comparative statement of 2019-20 and 2018-19 show that there was an
increase of 1163cr in liabilities. The non-current liabilities showed a decrease of
177cr. The assets increased by 1524cr.
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5.2 SUGGESTIONS

 By analyzing the liquidity ratios we can find that the ratios are not meeting the
standard. So the company has to increase its ratio to meet the standard and to meet its
short term obligations.

 Liquid ratio of the firm is not better. So the company should maintain proper liquid
assets and should also invest more funds in liquid assets to ensure liquidity in banking
operations.

 The profit of the company is generally showing an increasing trend except in the final
year 2020, when the pandemic errors. So the company can maintain and continue
their status quo.

 The company should maintain the long term financial position.

5.3 CONCLUSION

 The study mainly concentrates on the analysis of financial performance and soundness
of the company.

 It helps us to understand the total financial position of the company. The transperancy
of an MNC is truly portrayed.

 Comparison of the financial statement helped us to know the impact of various internal
and external factors on the firm.

 There were instincts that held with and against the company.

 The company’s execution of ideas was in its right path which is clear cut in its financial
positions.

 From the study of financial performance it can be concluded that Hindustan

Unilever has a satisfactory position in terms of profitability.

 The company’s foresighted future plans, on successful execution can bring farther
growth and results which is expected.

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 BIBLOGRAPHY

BOOKS

 A. Vinod - Accounting for Management

 S.N Maheshwari and S.K Maheshwari – Financial Accounting
 H.V Jhamb – Fundamentals of Management Accounting
 Gregory Horine – Project Management

PUBLISHED ANNUAL REPORTS

Annual report of

 Hindustan Unilever Limited

WEBSITES

 www.hul.co.in
 www.slideshare.net
 www.ijrar.org
 www.bartleby.com
 www.aims-international.org
 www.ndtv.com
 www.business-standard.com

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 ANNEXURE

BALANCE SHEET AS AT FROM 2016-17 TO 2020-21

BALANCE SHEET OF MARCH MARCH MARCH MARCH MARCH

HINDUSTAN UNILEVER 20-21 19-20 18-19 17-18 16-17
(in Rs. Cr.)

12mths 12mths 12mths 12mths 12mths

EQUITIES AND
LIABILITIES

SHAREHOLDER’S
FUNDS

Equity Share Capital 235.00 216.00 216.00 216.00 216.00

TOTAL SHARE 235.00 216.00 216.00 216.00 216.00

CAPITAL

Reserves and Surplus 47,199.00 7,815.00 7,443.00 6,859.00 6,274.00

TOTAL RESERVES 47,199.00 7,815.00 7,443.00 6,859.00 6,274.00

AND SURPLUSE

TOTAL 47,434.00 8,031.00 7,659.00 7,075.00 6,490.00

SHAREHOLDERS
FUNDS

NON-CURRENT
LIABILITIES

Long Term Borrowings 0.00 0.00 0.00 0.00 0.00

Deferred Tax Liabilities 5,986.00 0.00 0.00 0.00 0.00

(Net)

Other Long Term 2304.00 1269.00 804.00 666.00 574.00

Liabilities

Long Term Provisions 1,551.00 1,198.00 1,049.00 772.00 485.00

TOTAL NON-CURRENT 9,841.00 2,467.00 1,853.00 1,438.00 1,059.00

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 0.00 0.00 0.00 0.00 0.00

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 Trade Payables 8,627.00 7,399.00 7,070.00 7,013.00 6,006.00

Other Current Liabilities 1,723.00 1,287.00 782.00 972.00 809.00

Short Term Provisions 491.00 418.00 501.00 651.00 387.00

TOTAL CURRENT 10,841.00 9,104.00 8,353.00 8,636.00 7,202.00

LIABILITIES

TOTAL CAPITAL AND 68,116.00 19602.00 17,865.00 17,149.00 14,751.00

LIABILITIES

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 5,786.00 4,625.00 3,907.003 3,776.00 3,654.00

Intangible Assets 45,241.00 431.00 436.00 366.00 370.00

Capital Work-In- 623.00 513.00 373.00 430.00 203.00

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 51,650.00 5,569.00 4,716.00 4,572.00 4,227.00

Non-Current 312.00 252.00 256.00 256.00 260.00

Investments

Deferred Tax Assets 0.00 261.00 339.00 255.00 160.00

(Net)

Long Term Loans and 520.00 453.00 396.00 404.00 352.00

Advances

Other Non-Current 1,994.00 1,159.00 784.00 523.00 387.00

Assets

TOTAL NON- 54,476.00 7,694.00 6,491.00 6,010.00 5,386.00

CURRENT ASSETS

CURRENT ASSETS

Current Investments 2,683.00 1,248.00 2,693.00 2,855.00 3,519.00

Inventories 3,388.00 2,636.00 2,422.00 2,369.00 2,362.00

Trade Receivable 1,648.00 1,046.00 1,673.00 1,147.00 928.00

Cash And Cash 4,321.00 5,071.00 3,688.00 3,373.00 1,671.00

Equivalents
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Short Term Loans and 0.00 0.00 0.00 0.00 0.00
Advances

Other Current Assets 1,605.00 1961.00 898.00 1,405.00 885.00

TOTAL CURRENT 13,640.00 11,908.00 11,374.00 11,139.00 9,365.00

ASSETS

TOTAL ASSETS 68,116.00 19,602.00 17,865.00 17,149.00 14,751.00

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 2,692.00 2,809.00 2,009.00 1,699.00 1,241.00

CIF VALUE OF
IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares and 0.00 0.00 0.00 0.00 0.00

Loose Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN
FOREIGN EXCHANGE

Expenditure in Foreign 2,635.00 1,565.00 1,382.00 1,285.00 1,214.00

Currency

EARNINGS IN
FOREIGN EXCHANGE

FOB Value of Goods - - - - -

Other Earnings 247.00 283.00 324.00 387.00 541.00

BONUS DETAILS

Bonus Equity Share 1313,69 131.69 131.69 131.69 131.69

Capital

NON-CURRENT
INVESTMENTS

Non-Current - - - - -
Investments Quoted
Market Value

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 Non-Current 2.00 2.00 2.00 2.00 6.00
Investments Unquoted
Book Value

CURRENT
INVESTMENTS

Current Investments 2,683.00 1,248.00 2,693.00 2,885.00 3,519.00

Quoted Market Value

Current Investment - - 2.00 2.00 6.00

Unquoted Book Value

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