Hindustan Lever Chemicals Balance Sheet

------------------- in Rs. Cr. ------------------Mar '03 Mar '02 12 mths 15 mths

Dec '00 12 mths

Dec '99

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

13.79 13.79 0 0 298.64 0 312.43 100 88.57 188.57 501 Mar '03 12 mths

13.79 13.79 0 0 290 0 303.79 22.44 40.02 62.46 366.25 Mar '02 15 mths

13.79 13.79 0 0 274.55 0 288.34 0 166.76 166.76 455.1 Dec '00 12 mths

265.81

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

194.82 45.06 149.76 21.03 5.93 195.98 320.63 24.63 541.24 71.14 0 612.38 0 267.82 20.29 288.11 324.27 0 500.99 34.14 226.63

187.96 35.84 152.12 14.22 3.43 118.92 289.79 37.01 445.72 69.16 0 514.88 0 297.26 21.14 318.4 196.48 0 366.25 35.86 220.36

176.75 25.08 151.67 16.68 0.5 153.56 344.33 17.17 515.06 49.4 0 564.46 0 259.31 18.9 278.21 286.25 0 455.1 38.21 209.15

Profit & Loss account

------------------- in Rs. Cr. ------------------Mar '03 12 mths

Mar '02 15 mths

Dec '00 12 mths

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

983.43 10.68 972.75 1.84 58.25 1,032.84 840.38 31.91 15.36 2.03 72.5 9.61 0 971.79 Mar '03 12 mths

1,284.88 5.07 1,279.81 -1.02 -26.64 1,252.15 987.59 32.11 19.07 5.96 96.59 16.76 0 1,158.08 Mar '02 15 mths 95.09 94.07 22.71 71.36 11.34 0 60.02 2.31 62.33 12.68 47.34 170.49 0 20.68 0

1,091.48 12.61 1,078.87 -0.21 -98.49 980.17 770.99 26.2 12.33 7.51 93.99 10.89 0 921.91 Dec '00 12 mths 58.47 58.26 17.52 40.74 8.59 0 32.15 0 32.15 0.6 31.56 150.91 0 18.61 4.21

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs)

59.21 61.05 7.77 53.28 9.72 0 43.56 0 43.56 13.54 30.03 131.4 0 18.96 2.43

137.86 21.78

137.86 34.34

137.86 22.89

Equity Dividend (%) Book Value (Rs)

137.5 226.63

150 220.36

135 209.15

Cash Flow of Hindustan Lever Chemicals

------------------- in Rs. Cr. ------------------Mar '03 12 mths Mar '02 15 mths 60.02 178.74 -13.56 -145.34 19.85 17.17 37.01

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

43.57 -93.01 -18.08 98.7 -12.38 37.01 24.63

---- in Rs. Cr. ------------------Dec '00 12 mths 32.16 -43.61 -15.25 53.14 -5.72 22.89 17.17

Gross profit margin = Operating Income Margin = net profit margin = Return on equity = Return on assets = Return on capital employed = Return on networth=

(Net sales-COGS)/Net sales EBIT/Net sales Net profit/Net sales Net income/networth Net income/Total assets EBIT/Capital employed EATES/Networth

Mar '03 Mar '02 Dec '00 0.186759 0.272978 0.328047 0.052768 0.064642 0.046039 0.030871 0.03699 0.029253

0.096118 0.155831 0.109454 0.059941 0.129256 0.069347 0.22014 1.199159 0.25369

0.068463 0.104974 0.079143

Gross profit margin:

The Gross Profit Margin illustrates the profit a company makes after paying off its Cost of Gross Profit Margin is how efficient the management is in using its labour and raw materi Firms that have a high gross profit margin are more liquid and thus have more cash flow t Analysis:

Operating Income Margin:

The Operating Profit Margin will illustrate how efficiently the managers of a firm are using This ratio also shows the success rate of these managers. The higher the Operating Profit Margin, the better. This is because a higher Operating Pro A higher Operating Profit Margin can also mean sales are increasing faster than costs, and The difference between Gross Profit Margin and Operating Profit Margin is that the gross but the Operating Profit Margin accounts for both Cost of Goods sold and Administration/ Analysis:

net profit margin:

Net Profit Margin tells exactly how the managers and operations of a business are perfor Net Profit Margin compares the net income of a firm with total sales achieved. The net profit should be compared with the indusry standards. Analysis:

Return on equity :

ROE is referred to as Stockholder's return on investment, it tells the rate that shareholder It is an indicator of company's profitability by measuring how much profit the company ge It is also known as Return on Net Worth Analysis:

Return on assets:

ROA tells you what earnings were generated from invested capital (assets). ROA for public companies can vary substantially and will be highly dependent on the indu This is why when using ROA as a comparative measure, it is best to compare it against a c The assets of the company are comprised of both debt and equity. Both of these types of The ROA figure gives investors an idea of how effectively the company is converting the m The higher the ROA number, the better, because the company is earning more money on Analysis:

Return on capital employed:

A ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows, otherwise an A variation of this ratio is return on average capital employed (ROACE), which takes the av

Analysis:

ter paying off its Cost of Goods sold (cost of inventory). s labour and raw materials in the process of production. us have more cash flow to spend on research & development expenses, marketing or investing.

nagers of a firm are using business operations to generate profit.

e a higher Operating Profit Margin shows the company can keep its costs under control (successful cost accounting). ng faster than costs, and the firm is in a relatively liquid position. Margin is that the gross profit margin accounts for only Cost of Goods sold, sold and Administration/Selling expenses.

of a business are performing. les achieved.

he rate that shareholders are earning on their shares. ch profit the company generates with the money invested by common stock owners.

y dependent on the industry. o compare it against a company's previous ROA numbers or the ROA of a similar company. y. Both of these types of financing are used to fund the operations of the company. pany is converting the money it has to invest into net income. earning more money on less investment.

's capital investments. y borrows, otherwise any increase in borrowing will reduce shareholders' earnings. ACE), which takes the average of opening and closing capital employed for the time period.

accounting).

Current ratio = quick ratio= cash ratio= FA TO CA RATIO

current Assets/current liabilities (current assets-inventories)/current liabilities (cash and cash equivalents/current liabilities) FA/CA

2.02091 1.289149 0.091965 0.461837

1.49943 1.986271 1.099374 1.394084 0.124504 0.066214 0.774226 0.529852

Current ratio:

Current Ratio is a liquidity ratio that measures company's ability to pay its debt over the next 12 months If current ratio is bellow 1 (current liabilities exceed current assets), then the company may have problem However, low values do not indicate a critical problem but should concern the management. Current ratio gives an idea of company's operating efficiency. A high ratio indicates "safe" liquidity, but also it can be a signal that the company has problems getting p both symptoms that the company may not be efficiently using its current assets. Analysis:

quick ratio:

Quick Ratio is an indicator of company's short-term liquidity. Quick ratio specifies whether the assets that can be quickly converted into cash are sufficient to cover cu It measures the ability to use its quick assets (cash and cash equivalents, marketable securities and acco Ideally, quick ratio should be 1:1. If quick ratio is higher, company may keep too much cash on hand or have a problem collecting its accou Higher quick ratio is needed when the company has difficulty borrowing on short-term notes. A quick ratio higher than 1:1 indicates that the business can meet its current financial obligations with th A quick ratio lower than 1:1 may indicate that the company relies too much on inventory or other assets Many lenders are interested in this ratio because it does not include inventory, which may or may not be Analysis:

cash ratio:

Cash Ratio is an indicator of company's short-term liquidity. It measures the ability to use its cash and ca Cash ratio measures the immediate amount of cash available to satisfy short-term liabilities. A cash ratio Cash ratio is the most conservative look at a company's liquidity since is taking in the consideration only Cash ratio is used by creditors when deciding how much credit, if any, they would be willing to extend to Analysis:

t over the next 12 months or its business cycle ompany may have problems paying its bills on time. e management.

ny has problems getting paid on its receivable or have long inventory turnover,

h are sufficient to cover current liabilities. etable securities and accounts receivable) to pay its current liabilities.

roblem collecting its accounts receivable. ort-term notes. nancial obligations with the available quick funds on hand. n inventory or other assets to pay its short-term liabilities. , which may or may not be easily converted into cash.

bility to use its cash and cash equivalents to pay its current financial obligations. erm liabilities. A cash ratio of 0.5:1 or higher is preferred. in the consideration only the cash and cash equivalents. uld be willing to extend to the company

Debt ratio= Debt-equity Ratio = FIXED ASSET RATIO= PROPRITORY RATIO=

Total liabilities/ Total assets total debt/networth FA/NET WORTH SH. HOLDER'S FUND/TOTAL ASSETS

0.603559 0.205603 0.578345 0.479339 0.500741 0.526011 0.623625 0.829461 0.633575

Debt ratio

A debt ratio of greater than 1 indicates that a company has more debt than assets, meanwhile, a d Used in conjunction with other measures of financial health, the debt ratio can help investors det Analysis:

Debt-equity Ratio :

A high debt/equity ratio generally means that a company has been aggressive in financing its grow This can result in volatile earnings as a result of the additional interest expense. If a lot of debt is used to finance increased operations (high debt to equity), the company could po If this were to increase earnings by a greater amount than the debt cost (interest), then the share However, the cost of this debt financing may outweigh the return that the company generates on This can lead to bankruptcy, which would leave shareholders with nothing. The debt/equity ratio also depends on the industry in which the company operates. Analysis:

an assets, meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. io can help investors determine a company's level of risk

ssive in financing its growth with debt.

ty), the company could potentially generate more earnings than it would have without this outside financing. (interest), then the shareholders benefit as more earnings are being spread among the same amount of shareholders. he company generates on the debt through investment and business activities and become too much for the company to handle.

y operates.

shareholders. r the company to handle.

Earnings per Share(EPS) = payout ratio = Dividend cover = DIVIDEND YEILD RATIO PE RATIO DPS

Net profit/no of shares Dividents per share/EPS Net profit /dividends (DPS/MPS)*100 MARKET PRICE/ EPS DIVIDEND/NO. OF SHARES

21.78297 34.33918 22.89279 0.631369 0.43684 0.58967

1.583861 2.289168 1.695862 0.060685 0.068074 0.064543 10.404 6.417159 9.136064 13.75308 15.00073 13.4992

Earnings per Share(EPS):

The portion of a company's profit allocated to each outstanding share of common stock. Earn Earnings per share is generally considered to be the single most important variable in determ It is also a major component used to calculate the price-to-earnings valuation ratio. Analysis:

payout ratio :

A companys payout ratio is can be analyzed to determine various characteristics of the com Small fast-growing companies are likely to invest much of their earnings in the business for e These companies are likely to have a low payout ratio or none at all. A low payout ratio can also demonstrate that a companys dividend is small compared to its Large slow-growth companies, or companies like utility companies, are likely to pay out large Analysis:

Dividend cover:

As a rule of thumb, a ratio of 2 or higher is normally considered safe (i.e. the company can ea If the ratio is below 1.5 it's considered risky for the company. If the ratio is under 1, then it means the company is paying this year's dividend from the prev Analysis:

e of common stock. Earnings per share serves as an indicator of a company's profitability. ortant variable in determining a share's price. valuation ratio.

aracteristics of the company and its operations. ngs in the business for expansion and growth.

is small compared to its earnings, indicating that the dividend is likely to be secure and reliable. re likely to pay out larger dividends to shareholders. These companies will have a higher payout ratio.

(i.e. the company can easily afford to pay the dividend).

s dividend from the previous year's retained earnings.

DEBTOR TURNOVER RATIO= CREDIT TURNOVER RATIO= FIXED ASSET TURNOVER RATIO= STOCK TURN OVER RATIO=

NET CR. SALES/AVG. DR. NET CR. PURCHASE/AVG. CR. NET SALES/FA COGS/AVG. STOCK