A Project Report Submitted for partial fulfillment of the degree of B.

Com
Honours in Accounting & Finance under the University of Calcutta.

TOPIC /AREA OF THE STUDY

FINANCIAL STATEMENT ANALYSIS

TITLE OF THE PROJECT

“A COMPARATIVE STUDY ON FINANCIAL STATEMENT OF EMAMI LIMITED &

HINDUSTAN UNILEVER LIMITED”

SUBMITTED BY

NAME : AKASH DAS

C.U. REGISTRATION NO: 212-1111-0326-20
C.U ROLL NO: 201212-21-0132
COLLEGE ROLL NO: 24

SUPERVISED BY

NAME OF THE SUPERVISOR: Prof. Swarup Saha

NAME OF THE COLLEGE : MAHARAJA SIRISH CHANDRA COLLEGE

YEAR OF SUBMISSION :

2023
 ACKNOWLEDGEMENT

It is a matter of great pleasure to present this project on “A COMPARATIVE STUDY

ON FINANCIAL STATEMENT OF EMAMI LIMITED & HINDUSTAN UNILEVER
LIMITED” I take this opportunity to thank our respected Principal Dr. Shymal

Kumar Chakraborty for giving me an opportunity to work on this field. I am

grateful to our respected HOD Prof. Krishna Pada Dash without whom this project
wouldn’t have been successful .I am very thankful to my Supervisor Prof.
SWARUP SAHA sir for his full support in completing this project work. Finally, I
am grateful to acknowledge my family and friends and my parents and all the
teacher’s full support and coordination without which this project wouldn’t be
possible.

Name of

Student

AKASH DAS
ANNEXURE – 1

SUPERVISOR’S CERTIFICATE

This is to certify that I, Akash Das a student of B.Com Honors in Accounting &
Finance of MAHARAJA SRISCHANDRA COLLEGE under the University of
Calcutta has worked under my supervision and guidance for his Project Work and
prepared a Project Report with the topic and title “FINANCIAL STATEMENT
ANALYSIS”- A COMPARATIVE STUDY ON FINANCIAL STATEMENT OF
EMAMI LIMITED & HINDUSTAN UNILEVER LIMITED.
The Project report, which he is submitting, is his genuine and original work to the
best of my knowledge.

Signature:
Name: Prof. Swarup Das
Designation: PROFESSOR
Name of the College:
Maharaja Sirish Chandra
College

Place: Kolkata

Date:
ANNEXURE-2

STUDENT’S DECLARATION

I hereby declare that the Project Work with the title “FINANCIAL
STATEMENT ANALYSIS”- A COMPARATIVE STUDY ON FINANCIAL
STATEMENT OF
EMAMI LIMITED & HINDUSTAN UNILEVER LIMITED submitted by me for
the partial fulfillment of the degree of B.Com. Honours in Accounting & Finance
under the University of Calcutta is my original work and has not been submitted
earlier to any other University / Institution for the fulfillment of the requirement
for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the references.

Signature:
Name : Akash Das
Address: 39/1B South sinthee
Road , Kolkata - 50
C.U. Registration No : 212-1111-0326-20
C.U. Roll No: 201212-21-0132

Place: Kolkata

Date:
 INDEX
CHAPTER TOPIC PAGE NO.
 Background 1
 Justification of 3
the study
 Brief Review of 3
CHAPTER-1 Literature
 Objective of the
INTRODUCTION 4
Study
 Methodology of the 5
Study &
Limitations of the
study
 Chapter Planning
6

CHAPTER-2  Conceptual
7-8
Framework
CONCEPTUAL
 National Scenario 9
FRAMEWORK
& International
Scenario

CHAPTER-3  Presentation of 10-22

Data, Application
PRESENTATION
Of Statistical Tools
AND DATA
ANALYSIS 22
 Findings

CHAPTER-4  Conclusion 23
CONCLUSION AND  Recomendation 24
RECOMENDATION

BIBLIOGRAPHY Bibliography 25
 CHAPTER-1

INTRODUCTION

BACKGROUND

Financial statement analysis is the process of analyzing a company’s financial statements for
decision-making purposes. External stakeholders use it to understand the overall health of an
organization as well as to evaluate financial performance and business value. The financial
statement analysis is the process of reviewing and analyzing of a company’s financial
statements to make better economic decision. It is used by a variety of stakeholders, such as
credit and equity investors, the government, the public, and decision-makers within the
organization. These stakeholders have different interests and apply a variety of different
techniques to meet their needs. These parameters are indicative for analyzing two companies’
financial statements. The topic of research here is ‘Financial statement analysis of two
companies’. On the basis of cash flows, Ratios, profit and loss statement and Balance sheet. So
the project is the study financial statement towards the different companies in India .There are
many more companies in India, like Dabur, Hindustan Unilever, ITC, Nestle, Britannia, Godrej
etc. Our Research topic is this project is on two companies Hindustan Unilever and Emami.

 INTRODUCTION OF TWO COMPANIES

 HINDUSTAN UNILEVER LIMITED (HUL):

Hindustan Unilever Limited is an Indian consumer goods company. It is subsidiary company of
Unilever, an Anglo Dutch company. HUL headquarter in Mumbai, India Products of HUL
company are Foods, Cleaning Agent, Personal care, skin care ,water purifiers and other fast
moving consumer goods. HUL Company Founder is Sanjiv Mehta.

Page 1
 EMAMI LIMITED:
Emami Group is a largest Fast Moving Consumer Goods company headquartered in Kolkata
India. This group trade with their tag name Himani. The company has seven manufacturing units
across India and one overseas unit. The Company caters to a number of niche categories in the
personal care and healthcare segments. The company's products are sold across 60+ nations and
are available in 4.5 million retail outlets across India. Their most famous product is an antiseptic
cream named Boro Plus which is widely used worldwide. Emami company products are power
brands Navaratna, Baroplus etc Health care product.

Page 2
 JUSTIFICATION OF THE STUDY

In Indian money market FMCG company’s stage is very overwalmed and our researched
companies also in very good stage. The company names are HINDUSTAN UNILIEVER
LIMITED (HUL) and EMAMI. In the day by day improvement in Financial and Economical
every time proved that consumer to an Investor both company are very good choice in Society.
I choose financial statement analysis because I think that knowing about different ratios and
financial structure of Company, firm we can easily over look his performance throughout the
year and also about his liquidity of the company position. It helps investors, stakeholders and all
other interested parties to know about the efficiency, profitability, availability of funds to meet
the liability, use of capital and on what sales company is operating ratio analysis is the easiest
way to analyze the financial statement.

BRIEF REVIEW OF LITERATURE

1. HUL brands found Place in the “Top 10 brands” list for the year 2008 Published in
The Economic Times.

2. A study on: “Financial statement Analysis” prepared by Projects kart Department Master
of Business Administrative (MBA). (2011)

3. A study on: “Financial analysis” prepared by Deepanti Arora Department Master of

Business Administrative (MBA). (2012)

4. According to Myers, “Ratio analysis of financial statements is a study of relationship

among various financial factors in business as disclosed by a single set of statements and a
study of trend of these factors as shown in a series of statements”.(2013)

5. A study on google.com on financial Statement Analysis gives me details on the importance

of ratio. (2014).

Page 3
 6. Sixteen of HUL brands freatured in the ACNielsen brand equity list of 100 most trusted
brands annual survey (2014), carried out by brand equity, a supplement of The Economic Times.

7. A study on: “Ratio analysis” prepared by Ranobir dey (2014)

8. A Study on: “Data & Analytics” prepared by Pinkey Rana Department Bachelor of
commerce, Mangalayatan University. (2015)

9. A study on: “Financial statement analysis” prepared by Trishit Dutta Department B.com
university of Calcutta.(2016)

10. A Study on: “Emami limited on job satisfaction” prepared by Patel Vipul summer internship
.(2018)

11. A book by Jayanta Ghosh and Amitabh Basu is a good source of understanding about
different Ratio, its objectives, limitations, needs and its presentation.

12. The book by Hanif and Mukherjee gives me a brief idea regarding the concept of Ratio and
Balance sheet analysis of his techniques and types.

OBJECTIVE OF THE STUDY

 Primary Objective:
To analyze the financial statements of two FMCG companies i e; Hindustan Unilever Ltd
and Emami Ltd and to reach a Conclusion for their financial position.

 Secondary Objective:
1. To get an insight into the tools for analizing a Fundamentals strong company.
2. To observe the current market scenario of the FMCG sector after COVID-19 pandemic.

Page 4
 METHODOLOGY OF THE STUDY

Research will be based on:

Secondary Data : Secondary data will consist of different literatures from Text Books, 10 years
Annual Report, Internet and websites.

Statement Tools Used: Balance sheet, Ratios, Bar chart, line chart, column chart etc.

Statistical Tools Used: Correlation

Method of Analysis: The collected the secondary data analyzed according to the objectives of
the study based upon which suitable suggestions are made

Lastly, the conclusion is drawn on the basis of the findings.

LIMITATIONS OF THE STUDY

The study conducted and done is analytical, subject to the following limitations:

 The study is mainly carried out based on the secondary data provided in the
financial statements.
 There may be some fractional differences in the calculated ratios
 Changes in external environment like COVID19 pandemic will affect the comparison.
 Changes in price level will affect the comparability of two companies.
 The information collected from company’s annual report, internet and books assumed
tobe correct.

Page 5
 CHAPTER PLANNING

Chapter 1

INTRODUCTION- In this chapter I have discussed the background of topic, literature review of
the study, objectives of study, methodology of the study and some limitations of the study has
also been discussed.

Chapter 2

CONCEPTUAL FRAMEWORK- In this chapter the journey of two companies Emami ltd
and Hindustan Unilever ltd has been discussed financial statement, tool and National
International scenario.

Chapter 3

PRESENTATION AND DATA ANALYSIS AND FINDINGS- In this chapter there are some
data presentation based on companies 10 years annual report with the help of charts and also
discussed the findings.

Chapter 4

CONCLUSION AND RECOMMENDATION- In this chapter the ultimate results of companies

financial statement after the 10 years analysis.

BIBLIOGRAPHY AND ANNEXURE- This chapter contain bibliography

annexure including student declaration and supervisor’s certificate.

Page 6
 CHAPTER-2

CONCEPTUAL FRAMEWORK

THE FINANCIAL STATEMENT

Financial statement or Financial Report both same Formal records of financial activities and
a position of a business, firm, company or other entity. Relevant financial information is
presented in structured manner and in a statement of analysis which is easy to understand.

The financial statement include the income statement, balance sheet,statement of cash
flows,notes to accounts and a statement of changes in equity (if applicable).Financial
statement analysis is a method or process involving specific techniques for evaluating risks,
performance, financial health, and future prospects of an organization, company .

1. PROFIT & LOSS STATEMENT

Profit and loss statement is included to financial statement that shows you the company
income and expenditures. It also shows whether a company is making profit or loss for the
given year. P&L statement is one of the three important financial statements used for
reporting a company financial performance over a specific accounting period, with the other
two key statements being the balance sheet and the statements of cash flows

Page 7
2. BALANCE SHEET

Balance sheet is the financial statement of company which includes assets, liabilities, equity
capital, total debt etc. balance sheet includes assets on one side, and liabilities on other. A
Balance sheet is also called a ‘statement of financial position’ because it provides a snapshot
of your assets and liabilities and therefore the net worth. The balance sheet is part of the
financial statements issued by a business, informing the reader of the amounts of assets ,
liabilities and equity held by equity as of the balance sheet date .The other balance sheets are
common size , comparative , and vertical balance sheets.

3. STATEMENT OF CASH FLOWS

A cash flow statement is financial statement that provides aggregate data regarding all cash
inflows a company receives from its ongoing operations and external investment sources. It
also includes all cash outflows that pay for business activities and investments during a
given period.

4. RATIO:

Ratio analysis is a quantitative procedure of obtaining a look into a firm’s functional

efficiency, liquidity, revenues, and profitability by analyzing its financial records and
statements. Ratio analysis is a very important factor that will help in doing an analysis of the
fundamentals of equity.

5. FMCG SECTOR
Fast moving consumer goods, also known as consumer packaged goods, are products that
are sold quickly and at a relatively low cost. FMCG also known as CPG it means consumer
packaged goods is mainly responsible for producing, distributing and marketing fast-moving
consumer goods. The FMCG sector is the fourth largest sector in the Indian economy.

Page 8
 NATIONAL & INTERNATIONAL SCENARIO

 EMAMI LIMITED
NATIONAL SCENARIO
 Emami limited is one of the most exciting and leading FMCG companies in India
.Emami limited the flagship company of the Kolkata based Emami group.

INTERNATIONAL SCENARIO
 Emami limited currently markets several widely accepted Ayurveda , herbal
Cosmetic, personal and health care products comprising oil, talc cream, balm
medicine. These products are sold more than 60 countries worldwide.

 HINDUSTAN UNILEVER LIMITED

NATIONAL SCENARIO

 HUL is India’s largest FMCG Company. HUL sold soap to mineral water is
saving the life of 1.3 billion people daily.
 HUL researched center in Mumbai & Bangalore also.
 HUL’S brands are now household name which is only possible due to its 4 tier
 Distribution system names a) Direct coverage, b) indirect coverage c) streamine
d) Project SHATKI AMMA.

INTERNATIONAL SCENARIO

 HUL was the no 1 ranked Indian company on the Forbes list of ‘Most Innovative
companies’ across the globe for 2014.
 In 2012 HUL was recognized as one of the world’s most innovative companies by
Forbes.

Page 9
 CHAPTER-3

Presentation of Data Analysis and Interpretation of two

FMCG companies

Presentation of Data, Application Of Statistical Tools and

Interpretation

Page 10
  FINANCIAL HIGHLIGHTS OF EMAMI LIMITED

FINANCIAL HIGHLIGHTS
EMAMI LIMITED
(All amount in Rs.cr)
PARTICULARS 2021- 2020- 2019- 2018- 2017- 2016- 2015- 2014- 2013- 2012-
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
REVENUE FROM OPERATIONS 3192 2880 2654 2692 2530 2488 2391 2030 1705.1 1627.1

OTHER INCOME 95 70 57 36 19 31 33.8 96.41 62.46 57.2

TOTAL INCOME 3287 2950 2711 2729 2550 2519 2425.3 2126.5 1767.5 1684.3
TOTAL EXPENDITURE 2305 2364 2311 2302 2121 2037 2240.5 1721.2 1311.5 1307.6
NET PROFIT FOR THE YEAR 836 458 308 304 307 340 359.06 485.61 398.23 323.77
SHARE CAPITAL 44 44 45 45 22 22 22.7 22.7 22.7 15.13
SHORT-TERM-BORROWINGS 263.71 91.91 210.87 109.87 325.91 0 300 0 15.03 27.19
CURRENT LIABILITIES 414 700 792 679 713 782 912.74 386.53 283.67 318.16
FIXED ASSETS 1322 1138 1467 1712 1828 2011 2037.9 477.49 382.09 418.6
CURRENT ASSETS 1072 1126 1033 849 700 440 383.68 1058.1 831.18 695.54
EARNING PER SHARE(EPS) 19 10.23 6.67 6.68 13.53 15 14.44 20.78 17.55 14.27
CASH FLOW
OPERATING ACTIVITIES 595 921.53 530 553 587 729 534.26 496.62 378.49 326.64
INVESTING ACTIVITIES -187 -226.9 -227 -23 -279 -297 -129.87 -221.24 -133.26 -112.97
FINANCING ACTIVITIES -348 -688.2 -405 -427 -323 -495 502.99 -220.74 -263.64 -201.71

Page 11
  FINANCIAL HIGHLIGHTS OF HINDUTAN UNILEVER
LIMITED

FINANCIAL HIGHLIGHTS
HINDUTAN UNILEVER LIMITED
(All amount in Rs.cr)
PARTICULARS 2021- 2020- 2019- 2018- 2017- 2016- 2015- 2014- 2013- 2012-
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

REVENUE FROM OPERATIONS 52446 47028 39783 39310 35545 31622 35637.5 33903.14 30796.69 28487.2

OTHER INCOME 441 410 632 550 384 369 397.32 566.67 570.98 532.03
TOTAL INCOME 52887 47438 4015 39860 35929 33531 36034.8 34469.81 31367.67 29019.29
TOTAL EXPENDITURE 39,833 36715 31124 31226 28599 27017 27606 26898.55 24827.82 23075.71
NET PROFIT FOR THE YEAR 8892 8000 6764 6060 5225 4502 4082.42 4375.51 3945.57 3828.98
SHARE CAPITAL 235 23 216 216 216 216 216.39 216.35 216.27 216.25
SHORT-TERM-BORROWINGS 0 0 0 99 0 0 42 7 8.44 8.44
CURRENT LIABILITIES 10632 11103 9317 8667 8887 7714 9747.39 9201.66 9068.63 8005.52
FIXED ASSETS 35389 34791 959 004 4908 4567 3646.7 3256.13 3118.84 2643.53
CURRENT ASSETS 15522 14217 12321 11914 11660 101172 10242.3 9981.2 9559.1 8115.66
EARNING PER SHARE(EPS) 37.84 34.03 31.17 27.97 27.97 20.68 18.87 20.17 18.24 17.71
CASH FLOW
OPERATING ACTIVITIES 8964 9163 7623 5800 6064 5185 412.34 3291.91 3818.18 3604.76
INVESTING ACTIVITIES -1732 -1528 1791 -438 -1068 -1173 -268.23 137.98 -475.04 63.07
FINANCING ACTIVITIES -7984 -9309 -6819 -5390 -4975 -4214 -3818.95 -3462.42 -2960.29 -4147.41

Page 12
 REVENUE FROM OPERATIONS
 EMAMI LIMITED
REVENUE FROM OPERATION
REVENUE FROM OPERATION

3500
3000

2500

2000

1500

1000

500

 HINDUSTAN UNILEVER LIMITED

REVENUE FROM OPERATION

REVENUE FROM OPERATION

60000

50000

40000

30000

20000

10000

Page 13
 TOTAL INCOME

 EMAMI LIMITED

TOTAL INCOME
2012-2013 1684.3
2013-2014 1767.5
2014-2015
2015-2016 2126.5
2016-2017 2425.3
2017-2018 2519
2018-2019 2550
2019-2020 2729
2020-2021 2711
2021-2022

2950
3287

0 500 1000 1500 2000 2500 3000 3500

TOTAL INCOME

 HINDUSTAN UNILEVER LIMITED

TOTAL INCOME
2012-2013 1684.3
2013-2014 1767.5
2014-2015 2126.5
2015-2016 2425.3
2016-2017 2519
2017-2018 2550
2018-2019 2729
2019-2020 2711
2020-2021 2950
2021-2022 3287

0 500 1000 1500 2000 2500 3000 3500

TOTAL INCOME

Page 14
 TOTAL EXPENDITURE

 EMAMI LIMITED

TOTAL EXPENDITURE

3000
2000
1000
0
TOTAL EXPENDITURE

TOTAL EXPENDITURE

 HINDUSTAN UNILEVER LIMITED

TOTAL EXPENDITURE

40000

20000

0 TOTAL EXPENDITURE

TOTAL EXPENDITURE

Page 15
 NET PROFIT

 EMAMI LIMITED

NET PROFIT OF THE YEAR

NET PROFIT OF THE YEAR

900
800
700
600
500
400
300
200
100
0
2021 - 2020 - 2019 - 2018 - 2017 - 2016 - 2015 - 2014 - 2013 - 2012 -
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

 HINDUSTAN UNILEVER LIMITED

NET PROFIT OF THE YEAR
NET PROFIT OF THE YEAR

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Page 16
 CURRENT ASSETS
 EMAMI LIMITED
CURRENT ASSTES
1200
1000
800
600
400
200
0

CURRENT ASSTES

 HINDUSTAN UNILEVER LIMITED

CURRENT ASSTETS
120000
100000
80000
60000
40000
20000
0

CURRENT ASSTETS

Page 17
 CURRENT LIABILITIES
 EMAMI LIMITED
CURRENT LIABILITIES
1000
900
800
700
600
500
400
300
200
100
0

CURRENT LIABILITIES

 HINDUSTAN UNILEVER LIMITED

CURRENT LIABILITIES
12000
10000

8000

6000

4000

2000

CURRENT LIABILITIES

Page 18
 FINANCIAL RATIO STATEMENT

 EMAMI LIMITED
EMAMI LIMITED
(RATIO ANALYSIS)
PARTICULARS 2021- 2020- 2019- 2018- 2017- 2016- 2015- 2014- 2013- 2012-
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

NET PROFIT MARGIN RATIO (%) 26.66 15.93 24.08 11.29 12.15 13.66 13.7 23.22 23.35 19.89

CURRENT RATIO 1.17 1.61 1.3 1.25 0.98 0.56 0.47 3.6 2.9 2.18
RETURN ON ASSETS (%) 27.44 18.04 11.3 10.74 10.96 13.07 12.11 15.89 17.16 14.37

RETURN ON EQUITY (%) 40.40 25.79 16.6 14.6 15.25 19.4 38.38 39.36 49.96 44.01
. RETURN ON CAPITAL 33.28 32.22 21.8 20.38 14.71 18.69 26.93 37.57 47.33 37.55

EMPLOYED (%)

 HINDUSTAN UNILEVER LIMITED

HINDUSTAN UNILEVER LIMITED
(RATIO ANALYSIS)
PARTICULARS 2021- 2020- 2019- 2018- 2017- 2016- 2015- 2014- 2013- 2012-
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

NET PROFIT MARGIN RATIO (%) 16.95 17 16.98 15.41 14.7 13.53 11.45 13.64 13.8 14.17

CURRENT RATIO 1.38 1.28 1.32 1.37 1.31 1.32 0.1 1.08 1.05 1.01

RETURN ON ASSETS (%) 12.59 11.62 33.48 32.49 29.19 28.49 25.32 15.22 21.4 25
RETURN ON EQUITY (%) 18.09 16.77 82 76.95 71.61 66.37 88.7 99.5 104.1 94.07

. RETURN ON CAPITAL 20.29 19.01 87.58 88.98 82.03 78.54 128.4 127.7 130.2 109.1
EMPLOYED (%)

Page 19
 FINANCIAL RATIO ANALYSIS

1. NET PROFIT MARGIN RATIO (%)

a) This ratio indicates the net managerial efficiency and integrated success.

b) It should be kept high.

FOMULA: (NET PROFIT)/(SALES)*100

2. CURRENT RATIO

This ratio measures the ability of a company to meet its short-term obligations. Current assets /
current liabilities are those assets/liabilities which previls in the company for not more than 12
months.

FORMULA: (CURRENT ASSETS)/(CURRENT LIABILITIES)

3. RETURN ON ASSETS (%)

It measures how much profit a firm is generating in comparison to its total assets.

FORMULA: (EBIT)/(AVERAGE TOTAL ASSETS)*100

Page 20
4. RETURN ON EQUITY (%)

It measures the efficiency of the firm how much profit is generating in comparison to its equity
capital.

FORMULA: (NET PROFIT AFTER TAX)/(EQUITY OR OWNER’S FUND)*100

5. RETURN ON CAPITAL EMPLOYED (%)

This ratio measures the efficiency of sources deployed in a business by Estimating how much
return the firm is fetching with respect to its capital employed.

FORMULA: (EBIT OR NET PROFIT BEFORE INTEREST AND

TAX)/(CAPITAL EMPLOYED)*100

Page 21
Presentation of Data, Application of statistical Tools (Correlation)

45
40
35
30
25

EMAMI LIMITED
20
15
HINDUSTAN UNILEVER
LIMITED
10
5
0

NET PROFIT CURRENT RETURN ON RETURN ON RETURN ON

MARGIN RATIORATIO
(%) ASSETS EQUITY CAPITAL
EMPLOYED

FINDINGS

From the analysis of two companies ratios the following inferences can be drawn:

 NET PROFIT MARGIN (%): Both companies 10 years performance of net profit
margin ratio is good. I have shown in the line chart current scenario in 2021-2022 of
profit generating 15-30 (%) approx.
 CURRENT RATIO: I have shown in the line chart 10 years current ratio. In 2021-
2022 current ratio of two companies 1-2 approx.
 RETURN ON ASSETS (%): I have shown in the line chart 10 years Return on assets.
In 2021-2022 return on assets of two companies 10-30 (%) approx.
 RETURN ON EQUITY (%): I have shown in the line chart 10 years Return on equity.
In 2021-2022 return on equity of two companies 15-45 (%) approx.
 RETURN ON CAPITAL EMPLOYED (%): I have shown in the line chart 10 years  Return
on capital employed. In 2021-2022 return on capital employed of two companies 20- 40 (%)
approx.

Page 22
 CHAPTER-4

CONCLUSION AND RECOMMENDATIONS

CONCLUSION

It is concluded from the financial statement analysis and comparative study of two companies
Emami limited and Hindustan Unilever limited. The financial statement of Emami limited and
Hindustan Unilever limited showed two companies are large and consumer preferable according
to sale and profit of 10 years to current situation. In the world many more countries relation with
these companies are well. They’re most famous products is an antiseptic cream names Boro Plus
which is widely used worldwide. Both companies win many awards in 10 years according to
growth, employment, sale and company to customer relationship.

In the time of COVID 19 pandemic financial statements and ratios most of the company’s image
gone down and companies loss millions in the world. But these companies 2021-22 scenario can
proved some time down and up now both companies are stable. The COVID-19 has hit
Hindustan Unilever’s discretionary portfolio of skincare, Deodrants and colour cosmetics
contracted 15 percent in financial year 2020-21, while out-of-home products such as Hice creams
shrank 26 percent but the much bigger business of health, hygiene and nutrition grew 12 percent.
The COVID-19 has hit Emami’s sales boosted pain relief products like zandu Blam, Iodex
amrutanjan.

The main outcome of this project that financial statement analysis and a comparative study of
Emami limited & Hindustan Unilever limited to become effective, knowledgeable in the market.

Page 23
 RECOMMENDATIONS

 Both companies net profit margin ratio are good in current scenario but in 10 years Emami
limited profit margin percentage are very volatile and comparatively Hindustan Unilever
limited profit margin simply growth so I recommended to Emami limited fixed the
average level of profit margin in the market.
 In most company a good current ratio is between 1.5 and 2. In this time both companies
are stable in the ratio.
 Return on assets percentage of both companies’ measures in this project. Hindustan
Unilever limited chart can prove it’s big down fall in the time of COVID19 pandemic year
so I recommended to think an idea how to recover in the market.
 In the Return on equity both company measures as well. In the latest scenario of these
companies are generally good. I recommended 15-45% in ROE is good sign to growth.
 I recommended a high ROCE value indicates that larger chunk of profits can be
invested back into the company for the benefit of shareholders.

Page 24
  BIBLIOGRAPHY

Book:
 Ghosh, Jayanta. (2020). Financial Reporting and Financial Statement
Analysis, Kolkata: Tee Dee Publications Private Ltd.
 Mukherjee,A &Hanif,M.(2010). Financial Accounting, New Delhi:
Tata McGraw Hill Education Private Ltd.

Journal:
 (2021) April 29, 03.21PM HUL Q4 Net profit rises 41% -The Economic Times.
 (2021) March 09, 02.16 PM Emami stocks fall nearly 4% -The Economic Times.

Web-site (Internet):
www.capitalmarket.com
www.emamiltd.in
www.hul.co.in
www.moneycontrol.com
www.wikipedia.org/
Hindustan Unilever Limited Logo: www.hul.wikimedia.org
Emami Limited Logo: www.emami.wikipedia.org

Hindustan Unilever Limited Annual Reports: www.hul.co.in/investor-relations/annual-reports/

Annual-Report 2021-2022 TO2012-2013

Emami Limited Annual Reports: www.emamiltd.in/investor-info/

Annual-Report 2021-2022 TO 2012-2013

Page 25