Financial Statement Analysis of HUL (4th SEM)

A STUDY ON
THE FINANCIAL STATEMENT

ANALYSIS OF HINDUSTAN UNILEVER
LIMITED
For partial fulfillment of the requirements for the Degree of Master of
Business Administration under the SIDHO KANHO BIRSHA UNIVERSITY,
Purulia
Submitted to
Department of Business Administration
Submitted by
Name of the candidate: Arpita Sarangi
Registration no. 006521 of 2016-2017
Roll: 86410021 No.: 0007
Under the Guidance of
---------------------------------------------------
----------------------------------------------------
Sidho Kanho Birsha University, Purulia
Month & Year of submission

July, 2023
1
CERTIFICATE
It is certified that the work contained in the project report titled “ The Financial Statement
Analysis of Hindustan Unilever Limited” by Arpita Sarangi , has been carried out under
my/our supervision and that this work has not been submitted elsewhere for a degree.
Signature of supervisor:
Name:
Department:
July, 2023
2
ACKNOWLEDGMENT
Words are indeed inadequate to convey my deep sense of gratitude to all those who have
helped me in completing this project to the best of my ability. Being a part of this project has
certainly been a unique and a very productive experience on my part.
This project has done with the help of annual reports, various journals, website and magazine.
Faculties of Business Administration department have helped me a lot in pointing out my
mistakes and channelized me in a proper way. They directed me about how to proceed with
the data. I highly obliged to them for their kind support and instruction.
I present my sincere gratitude towards Dr. Pradipta Banerjee, Dr. Krishna Dayal Pandey, Dr.
Jagannath Ghosh, Dr.Srimoyee Datta, for their able guidance and support in completing my
project.
Finally, I would like to be grateful to all those who directly and indirectly have been of grate
help and obliged me with their support and have helped me in converting my collection of
data and information into a finely polished project. I hope my project will give an idea about
“THE FINANCIAL STATEMENT ANALYSIS OF HINDUSTAN UNILEVER
LIMITED”
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PREFACE
Preparation of project report is of a greater importance and while the matter comes of a
student of MBA field, it becomes very essential. As we know, today the era has totally
changed. Practical knowledge is given more importance rather than that of theoretical
concept.
This Project Report has been prepared in partial fulfillment for the degree of master of
Business Administration.
The project is made with a view for making myself familiar I the practical aspect of
management. As we know ‘practice makes a man perfect’ in this aspect practical knowledge
is mostly needed to standout in the working life. The topic of the project is “The Financial
Statement analysis of Hindustan Unilever Limited”.
Name: Arpita Sarangi
MBA, 4th Semester
Registration no.: 006521 of 2016-2017
Roll: 86410021 No.:0007
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STUDENT’S DECLARATION
I hereby declare that the Project Work with the title “The Financial Statement Analysis of
Hindustan Unilever Limited” submitted by me for the partial fulfillment of degree of
Master of Business Administration (MBA) under the Sidho Kanho Birsha University is my
original work and has not been submitted earlier to any other university/institution for the
fulfillment 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 other 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 reference.
Signature: Place: Purulia
Name: Arpita Sarangi Date: 12/07/2023
Registration no.: 006521 of 2016-2017
Roll: 86410021 No.:0007
Name of the university: Sidho Kanho Birsha University, Purulia
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TABLE OF CONTENTS
Title Page No.
SECTION 1 (INTRODUCTION) 8-15
1.1 Introduction 8-10

1.2 Scope 11
1.3 Objectives 12
1.4 Methodology 12-13
1.5 Research tools 14
1.6 Research Gap 15
1.7 Limitations 15
SECTION 2 16-27
(REVIEW OF LITERATURE)
2.1 Conceptual Review 16-24

2.2 Empirical literature 25-27
SECTION 3 28-31
(INDUSTRY & COMPANY PROFILE)
3.1 Industry Profile (FMCG) 28

3.2 Company Profile (Hindustan Unilever Limited) 29
3.3 Visions 30
3.4 History 30-31
SECTION 4 32-50
(DATA ANALYSIS & INTERPRETATION)
4.1 Ratio analysis 32-42

4.2 Comparative Balance Sheet 43-50
SECTION 5 51-52
(FINDINGS, SUGGESTIONS & CONCLUSION)
5.1 Findings 51
5.2 Suggestions 52
5.3 Conclusion 52
6
BIBLIOGRAPLY 53
ANEXTURE 54-59
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SECTION – 1
1.1 INTRODUCTION
Finance is a term for matters regarding the management, creation, and study of
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.
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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:
 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.
 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.
 These include sales and the various expenses incurred during the stated period.
 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.
 A cash flow statement reports on a company’s cash flow activities,

particularly its operating, investing and financing activities over a stated
period.
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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 analyze the overall financial performance of Hindustan Unilever Limited.

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 population or 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 2021-22

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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 Research gap
A research gap is a question or a problem that has not been answered by any of the existing
studies or research within your field. Sometimes, a research gap exits when there is a concept
or new idea that hasn’t been studied at all.
Various researchers have highlighted various aspects of financial management of “Hindustan
Unilever limited “in terms of their specific ideas and strategies. But there are only few papers
regarding the financial statement analysis. So, in my paper I only focus on financial statement
analysis of Hindustan Unilever Limited and none of the researcher deals with the current data
so here I find it as my research gap.
1.7 Limitation of the study

It only considered on historical cost.
It shows specific period reporting.
No discussion on non financial issues.
It only provides quantitative information which is expressed in monetary term.
It reports on past financial results of the business.
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SECTION- 2
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.
a) The position statement or balance sheet

b) 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
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 analyze 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 analyzing 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
analyze.
Ratio Analysis
 Ratio analysis is a widely used Technique of analyzing financial statements.

 An analysis of financial statements with the help of ratios is termed as ratio analysis.
 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
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weigh and performance of the firm.
 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.
 Classification of Ratios
Accounting ratio can be classified in several in several ways in general; a c c o u n t i n g

ratios may be classified on the following basis:
Liquidity Ratio
Leverage Ratio
Activity Ratio
Profitability Ratio
Market Test Ratio
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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:
 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 Ratio = Current Assets / Current Liabilities
 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
Absolute liquid Ratio = Cash and Bank + Short term securities / Current Liabilities

Liquid 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
its current liabilities.
 Inventories are considered to be less liquid. It is computed as follows;
Liquid Ratio = Liquid Assets / Current Liabilities
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
 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 equity ratio = Total Debt / Total Equity
 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 Assets to Net worth Ratio = Fixed Assets / Shareholders Fund
 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:
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Proprietary Ratio = Shareholders fund / Total assets
 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 solvency ratio.
 This ratio is generally expressed as a proportion.
The following formula is used for computing solvency and ratio.
Solvency Ratio = Total Assets / Total Debt
 Fixed Asset Ratio

 It is the ratio of fixed assets to long-term funds or capital employed.
It is computed as:
Fixed Asset Ratio = Fixed Assets (after depreciation) / Long term funds
Activity Ratio
These ratios 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:
 Inventory Turnover Ratio

 Inventory or stock turnover ratio shows the relationship between costs 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 is
computed by the following formula:
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Inventory Turnover Ratio = Cost of Goods sold / Average Stock
 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:
Debtors Turnover Ratio = Net credit sales / Average debtors (including B/R)
 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:
Creditors turnover ratio = Net credit Purchase / Average creditors (including B/P)
 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 :
Working Capital Turnover Ratio = Net sales / Working capital
 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 utilizing its fixed assets in
producing sales. It is computed as follows:
Fixed Asset Turnover Ratio = Net sales / Net fixed Asset
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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;
 Gross profit ratio

 This is the ratio of gross profit to sales expressed as percentage.
 It is also known as gross margin.
 It is calculated as follows:
Gross profit ratio = Gross profit / Net profit × 100
 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:
Operating Ratio = Cost of goods sold + Operating Expenses / Net sales × 100
 Operating profit ratio

 Operating profit ratio explains the relationship between operating profit and net sales.
 It is calculated by the following formula:
Operating profit ratio = Operating profit / Net sales × 100
 Net Profit Ratio

 Net profit ratio is the ratio of net profit earned by a business and its net sales.
 It measures overall profitability.
Net Profit Ratio = Net Profit / Net sale × 100
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 Return on investment (ROI)
 ROI measures the overall profitability.
 It establishes the relationship between profit or return and investment.
 It is also called the accounting rate of return.
 It is computed as follows:
Return on investment = Net profit before interest and tax / Capital employed × 100
 Return on shareholder’s fund

 This is the ratio of net profit to shareholders fund or net-worth.
 It measures the profitability from the shareholders point of view.
Return on shareholder’s fund = Net profit after interest and tax /Capital employed ×100
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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
25
researcher conducted the project with HUL for a period from 2006 to 2011 to measure the
relative liquidity and solvency level of the company.
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 via the 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
26
tools of financial statement analysis for examining the degree of efficiency of working capital
management have been adopted during the study period.
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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SECTION-3
INDUSTRY AND COMPANY PROFILE
3.1 INDUSTRY PROFILE
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:
 Hindustan Unilever Limited

 India Tobacco Company (ITC) Limited
 Nestle India Limited
 Britannia Industries Limited
 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
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 headquartered in Mumbai, India.
Its products include foods, beverage, cleaning agents, personal care products, water
purifies and other fast moving consumer goods.
It was founded in the year 1933.
The CEO of the company is Rohit Jawa.
On any given day, nine out of ten Indian households use HUL’s 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.
29
3.3 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.
3.4 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.
 Unilever now holds 67.25% equity in the company. The rest of the shareholding is
distributed among about three lakh individual shareholders and financial institutions
30
 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.
31
SECTION- 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.
32
4.1.1 Liquidity Ratio:
 Current Ratio (ideal ratio = 2:1)
Current Ratio = Current asset /Current liability
Table showing current ratio
Year Current asset Current liability Current ratio
(in crores) (in crores)
2017-18 9365 7202 1.30:1
2018-19 11139 8636 1.28:1
2019-20 11374 8353 1.36:1
2020-21 11908 9140 1.30:1
2021-22 13640 10841 1.25:1
The ideal ratio is 2:1. All the five ratios are below this range. The highest is in the year of
2019-20. In the year 2021-22 ratio is 1.25:1. The firm is in an average condition to meet the
short-term debts.
Chart showing changes in current ratio
Current Ratio
1.6
1.4
1.2
0.8
0.6
2017-18 2018-19 2019-20 2020-21 2021-22

0.4
Current Ratio
0.2
33
 Quick Ratio (Ideal Ratio=1:1)
Quick Ratio = Quick assets/Current liabilities
Table showing Quick Ratio
Year Quick Assets Current Assets Quick Ratio
(in crores) (in crores)
2017-18 7003 7202 0.97:1
2018-19 8780 8636 1.01:1
2019-20 8952 8353 1.07:1
2020-21 9272 9140 1.01:1
2021-22 10257 10841 0.94:1
The ideal ratio is 1:1. In all years almost the ratio is satisfactory. The lowest is in the year of
2017-18. The highest is the year of 2019-20. For the 2021-22 year is 0.94:1, which is just
above the ideal ratio.
Graph showing Quick Ratio
Quick Ratio
1.2
0.8
0.6
0.4
0.2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Quick Ratio
4.1.2 Leverage Ratios
34
 Solvency Ratios
Total Assets to Debt Ratio (ideal ratio=1:1)
Total Assets to Debt Ratio = Total Assets/ Total Debt
Table showing Total Assets to Debt Ratio

Year Total Assets Total Debt Total Assets to
(in crores) (in crores) Debt Ratio
2017-18 14751 8321 1.77:1
2018-19 17146 10074 1.70:1
2019-20 17865 10206 1.75:1
2020-21 19602 11571 1.69:1
2021-22 68116 20682 3.29:1
The standard ratio is not fixed. The ratio indicates the degree of solvency of a business. In the
year 2021-22 ratio is 3.29:1. The company is solvent because assets are sufficiently more
than liabilities. Therefore, the company is financially sound.
Graph showing Total Assets to Debt Ratio
Total Assets to Debt Ratio

3.5
2.5
1.5
0.5
2017-18 2018-19 2019-20 2020-21 2021-22
0
Total Assets to Debt Ratio
 Debt Equity Ratio (ideal ratio = 2:1)
35
Debt Equity Ratio = Total Debt / Equity
Table showing Debt Equity Ratio
Year Total Debt Equity Debt Equity
(in crores) (in crores) Ratio
2017-18 8321 6430 1.29:1
2018-19 10074 7072 1.42:1
2019-20 10206 7659 1.33:1
2020-21 11571 8031 1.44:1
2021-22 20682 47434 0.43:1
The ratio for the year 2021-22 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.
Graph showing Debt Equity Ratio
Debt Equity Ratio

1.5
1.3
1.1
0.9
0.7
0.5
0.3
2017-18 2018-19 2019-20 2020-21 2021-22
0.1
Debt Equity Ratio
 Proprietary Ratio (ideal ratio =50%)
36
Proprietary Ratio = Shareholder’s Fund/Total Asset
Table showing Proprietary Ratio
Year Shareholder’s Total Asset Proprietary

Ratio
Fund (in crores) (in crores)
%
2017-18 6490 14751 43.9
2018-19 7075 17149 41.2
2019-20 7659 17865 42.8
2019-21 8031 19602 40.9
2021-22 47434 68116 69.6
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.
Graph showing Proprietary Ratio
Proprietary ratio
80
70
60
50
Proprietary ratio
40
30
20
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
4.1.3 Profitability Ratios
37
 Gross Profit Ratio
Gross Profit Ratio = (Gross Profit/Net Sales) x100
Table showing Gross Profit Ratio
Year Gross Profit Net Sales Gross Profit Ratio
(in crores) (in crores) %
2017-18 6792 31890 21.29
2018-19 7763 34525 22.48
2019-20 9046 38224 23.66
2020-21 10030 38785 25.86
2021-22 11502 45996 25.00
The ideal ratio is 25%. The Gross Profit showed an increasing rate which is a positive sign.
The ratio for the year 2021-22 is 25.00%, which is the second highest among the five years.
Graph showing Gross Profit Ratio
Gross profit ratio

30
25
20
Gross profit ratio
15
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
 Net Profit Ratio
38
Net Profit Ratio = (Net Profit/Sales) x 100
Table showing Net Profit Ratio
Year Net Profit Sales Net Profit Ratio
(in crores) (in crores) %
2017-18 4490 31890 14.07
2018-19 5237 34525 13.16
2019-20 6036 38224 15.79
2020-21 6738 38785 17.37
2021-22 7954 45996 17.29
Net Profit Ratio also shows an increasing trend. It is the moderate in the y e a r 2021-
22. An increasing ratio is satisfactory. The trend also is satisfactory.
Line showing Net Profit Ratio
Net profit ratio

20
18
16
14
12
Net profit ratio
10
8
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
 Operating Ratio
39
Operating ratio= (Operating profit /Net Sales) x 100
Table showing Operating Ratio
Year Operating profit (in crores) Net sales (in crores) Operating ratio
2017-18 25744 31890 80.72
2018-19 27438 34525 79.47
2019-20 29802 38224 77.96
2020-21 29575 38785 76.25
2021-22 35407 45996 76.97
The operating ratio showed a decreasing rate which is a negative sign. The ratio for the year
2021-22 is 76.97%, which is the second lowest among the five years.
Chart showing operating ratio
operating ratio
82
81
80
79
78
operating ratio
77
76
75
74
2017-18 2018-19 2019-20 2020-21 2021-2022
4.1.4 Activity Ratio
40
 Fixed Assets Turnover Ratio
Fixed Assets Turnover Ratio = Net Sales/Fixed Assets
Table showing Fixed Assets Turnover Ratio
Year Net Sales Fixed Assets Fixed Assets
(in crores) (in crores) Turnover Ratio
2017-18 31890 4227 7.54
2018-19 34525 4572 7.55
2019-20 38224 4716 8.11
2020-21 38785 5569 6.96
2021-22 45996 51560 0.89
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.
Pie Chart showing Fixed Assets Turnover Ratio
Fixed asset turnover ratio
2017-18
2018-19
2019-20
2020-21
2021-22
 Working Capital Turnover Ratio (ideal ratio = 7 or 8 times)
41
Working Capital Turnover Ratio = Net Sales/Working Capital
Table showing Working Capital Turnover Ratio
Year Net Sales Working Capital Working Capital
(in crores) (in crores) Turnover Ratio
2017-18 31890 2163 14.74
2018-19 34525 2506 13.78
2019-20 38224 3021 12.65
2020-21 38785 2804 13.83
2021-22 45996 2799 16.43
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 year 2021-22 is 16.43 times, which is above the ideal
ratio.
Chart showing Working Capital Turnover Ratio
Working capital turnover ratio

18
16
14
12
10 Working capital turnover ratio
0
2017-18 2018-19 2019-20 2020-21 2021-22
4.2 Comparative balance sheet
42
Table showing comparative balance sheet of the financial year 2018-19 and 2017-18
Particulars 2018-19 2017-18 Increase or Increase or

Decrease (in decrease
(in crores) (in crores) crores)
%
Total Share Capital 216.00 216.00 0.00 0.00
Total Reserves and Surplus 6,859.00 6,274.00 585.00 9.32
Total Shareholders’ funds 7,075.00 6,490.00 585.00 9.01
Total Non- Current liabilities 1,438.00 1,059.00 379.00 35.79
Total Current Liabilities 8,636.00 7,202.00 1,434.00 19.91
Total Capital and Liabilities 17,149.00 14,751.00 2,398.00
Total Fixed Assets 4,572.00 4,227.00 347.00 8.21
Total Non-Current Assets 6,010.00 5,386.00 624.00 11.59
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 2018-19 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
43
increase of 18.94% which included trade receivables also. Overall it showed an increase of
18.94% in current assets.
Table showing comparative balance for the financial year 2019-20 and 2018-19
44
Decrease (in Decrease
%
Total Shareholders funds 7,659 7,075.00 584.00 8.25
Total Current Liabilities 8,353.00 8,636.00 (283.00) 3.28
Total Capital and Liabilities 17,865.00 17,149.00 716.00
Total Non-Current Assets 6,491.00 6,010.00 481.00 8.00
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 2019-20 the Non-current assets increased by 8 %. Total current
liabilities are also decreased by 3.28% which is a positive sign. The Total capital and
liabilities also increased by 716cr.
45
Table showing the comparative balance sheet of the financial year 2020-21 and 2019-20
46
decrease (in decrease
%
Total Shareholders funds 8,031.00 7,659.00 372.00 4.86
Total Current Liabilities 9,104.00 8,353.00 751.00 9.00
Total Non-Current Assets 7,694.00 6,491.00 1,203.00 18.53
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 2020-21 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.
47
Table showing comparative balance sheet of the financial year 2021-22 and 2020-21
48
decrease (in decrease
%
Total Reserves and Surplus 47,199.00 7,815.00 39,384.00 503.95
Total Shareholders funds 47,434.00 8,031.00 39,403.00 490.63
Total Non- Current liabilities 9,841.00 2,467.00 7,374.00 298.91
Total Current Liabilities 10,841.00 9,104.00 1,737.00 19.08
Total Fixed Assets 51,650.00 5,569.00 46,081.00 827.46
Total Non-Current Assets 54,476.00 7,694.00 46.782.00 608.03
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 2021-22 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 were increased by 14.94%.
49
SECTION-5
FINDINGS, SUGGESTIONS AND CONCLUSIONS
5.1 FINDINGS
50
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.
The debt equity ratio was above the ideal ratio 2:1 in the financial year of 2017-18. The
ratio for the year 2021-22 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
20120-21 it was low compared to 2019-20.
The comparative statement of 2017-18 and 2016-17 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.
1621cr in liabilities and the assets showed an increase of 2156cr. Hence shows a net
increase of 535cr.
183cr in liabilities. The current liabilities showed a decrease of 262cr. The assets
increased by 767cr.
1163cr in liabilities. The non-current liabilities showed a decrease of 177cr. The assets
increased by 1524cr.
5.2 SUGGESTIONS
51
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 2021, 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 transparency
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.
BIBLOGRAPHY
52
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
ANNEXURE
BALANCE SHEET AS AT FROM 2017-18 TO 2021-22
53
BALANCE SHEET OF MARCH 21- MARCH 20- MARCH 19-20 MARCH 18- MARCH
HINDUSTAN UNILEVER 22 21 19 17-18
(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 CAPITAL 235.00 216.00 216.00 216.00 216.00
Reserves and Surplus 47,199.00 7,815.00 7,443.00 6,859.00 6,274.00
TOTAL RESERVES AND 47,199.00 7,815.00 7,443.00 6,859.00 6,274.00

SURPLUSE
TOTAL SHAREHOLDERS 47,434.00 8,031.00 7,659.00 7,075.00 6,490.00
FUNDS
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 0.00 0.00
Deferred Tax Liabilities (Net) 5,986.00 0.00 0.00 0.00 0.00
54
Other Long Term Liabilities 2304.00 1269.00 804.00 666.00 574.00
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
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
55
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- Progress 623.00 513.00 373.00 430.00 203.00
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 Investments 312.00 252.00 256.00 256.00 260.00
Deferred Tax Assets (Net) 0.00 261.00 339.00 255.00 160.00
Long Term Loans and 520.00 453.00 396.00 404.00 352.00

Advances
Other Non-Current Assets 1,994.00 1,159.00 784.00 523.00 387.00
TOTAL NON- CURRENT 54,476.00 7,694.00 6,491.00 6,010.00 5,386.00

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
56
Trade Receivable 1,648.00 1,046.00 1,673.00 1,147.00 928.00
Cash And Cash Equivalents 4,321.00 5,071.00 3,688.00 3,373.00 1,671.00
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 Loose Tools0.00 0.00 0.00 0.00 0.00
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
57
Non-Current Investments 2.00 2.00 2.00 2.00 6.00
Unquoted Book Value
EXPENDITURE IN
FOREIGN EXCHANGE
CURRENT INVESTMENTS
Expenditure in Foreign 2,635.00 1,565.00 1,382.00 1,285.00 1,214.00
Currency
Current Investments Quoted 2,683.00 1,248.00 2,693.00 2,885.00 3,519.00
Market Value
EARNINGS IN FOREIGN
EXCHANGE
Current Investment Unquoted - - 2.00 2.00 6.00
Book Value
FOB Value of Goods - - - - -
Other Earnings 247.00 283.00 324.00 387.00 541.00
BONUS DETAILS
Bonus Equity Share Capital 1313,69 131.69 131.69 131.69 131.69
NON-CURRENT
INVESTMENTS
Non-Current Investments - - - - -
Quoted Market Value
58
59

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A STUDY ON

THE FINANCIAL STATEMENT

Under the Guidance of

Sidho Kanho Birsha University, Purulia

Month & Year of submission

Sidho Kanho Birsha University, Purulia

Name: Arpita Sarangi

MBA, 4th Semester

Registration no.: 006521 of 2016-2017

Roll: 86410021 No.:0007

Sidho Kanho Birsha University, Purulia

Signature: Place: Purulia

Name: Arpita Sarangi Date: 12/07/2023

Registration no.: 006521 of 2016-2017

Roll: 86410021 No.:0007

Name of the university: Sidho Kanho Birsha University, Purulia

SECTION 1 (INTRODUCTION) 8-15

1.1 Introduction 8-10

2.1 Conceptual Review 16-24

(INDUSTRY & COMPANY PROFILE)

3.1 Industry Profile (FMCG) 28

(DATA ANALYSIS & INTERPRETATION)

4.1 Ratio analysis 32-42

(FINDINGS, SUGGESTIONS & CONCLUSION)

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

Relevant financial information is presented in a structured manner and in a

They typically include four basic financial statements accompanied by a

 A balance sheet or statement of financial position, reports on a company's

 A statement of change in equity or statement of equity, or statement of

 A cash flow statement reports on a company’s cash flow activities,

Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever

HUL was established in 1933 as Lever Brothers of United Kingdom

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.

But from far view this is true.

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

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

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

a) Owners and managers require financial statements to make important

The objective of this project is:

To analyze the overall financial performance of Hindustan Unilever Limited.

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

Descriptive research design is what is being used here.

 Descriptive research is defined as a research method that describes the

 The descriptive research method primarily focuses on describing the

 In other words, it “describes” the subject of the research, without covering

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

 Financial Statement of 2021-22

It finds out the reason for the problem.

Ratio analysis gives a much compressed and clear representation of the

Common size financial statement is another tool used here.

A common size financial statement displays items as a percentage of a

Comparative financial statement is the next tool used here.

A comparative statement is a document used to compare a particular

1.7 Limitation of the study

Thus financial statement generally refers to the two statements.

a) The position statement or balance sheet

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

 Comparative financial statement

Comparative financial statement