Hindustan Unilever Limited is the largest consumer goods company in India, established

in 1933 and is based out of Mumbai. The company known for its presence across almost all
categories of consumer products, has a variety of products in each of the categories targeted at
almost all the customer segments.

It has products in over 20 consumer categories majorly Food & Drink, Personal care,
Home care and Water purifier serving over 700 million customers across the country and is
undoubtedly the market leader in the FMCG sector.

Some of the famous brands of HUL are Dove, Lux, Lifebuoy, Pears, Hamam, Lyril,
Rexona, Surf Excel, Wheel, Comfort, Clinic Plus, Sunsilk, Fair & Lovely, Pond’s, Lakmè,
Vaseline, Bru, Taj Mahal, Lipton, Brooke Bond, Cornetto, Kisan, Annapurna, Magnum, Close
up, Pepsodent, and many more.

The company with its exhaustive product range and wide distribution network aims to
provide products fulfilling the needs and demands of all the segments of the society across the
country. The
company has always focused on innovative product offerings and adapting itself to the market
changes, which has helped it maintain its market leadership.

History

The company was renamed in June 2007 as “Hindustan Unilever Limited”. Lever Brothers first
commenced operations in India in the summer of 1888, when crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata
harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).In
1956, it became known as Hindustan Lever Limited, as a result of a merger between Lever
Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. Hindustan Unilever
Limited was established in 1933 as Lever Brothers India Limited by Lever Brothers.

We will develop new ways of doing business with the aim of doubling the size of our company
while reducing our environmental impact. To earn the love and respect of India, by making a
real difference to every Indian.We will inspire people to take small everyday actions that can
add up to a big difference for the world. We help people feel good, look good and get more out of
life with brands and services that are good for them and good for others. We work to create a
better future every day

ABOUT HINDUSTAN UNILEVER LTD.

Hindustan Unilever Ltd. was incorporated in the year 1933. Its today's share price is 2364.85. Its
current market capitalisation stands at Rs 555642.52 Cr. In the latest quarter, company has
reported Gross Sales of Rs. 515900 Cr and Total Income of Rs.465090 Cr.

The company's management includes Ashish Gupta, Leo Puri, Kalpana Morparia, Sanjiv
Misra, OP Bhatt, Wilhelmus Uijen, Dev Bajpai, Srinivas Phatak, Sanjiv Mehta, Sanjiv Mehta
VISION OF THE COMPANY
The four pillars of our vision set out the long term direction for the company – where we want
to go and how we are going to get there:
MISSION OF THE COMPANY
Unilever's mission Is “TO ADD VITALITY TO LIFE”

Hindustan Unilever Products

Hindustan Unilever Limited is the company With Hindustan Unilever Products over 40 brands
across 12 distinct categories
Examples

Fabric wash, hosehold care, purifiers, personal wash, skin care, hair care, color cosmetics oral
care deodorants beverages .icecreams& frozen deserts and food etc.
 BALANCE SHEET

BALANCE SHEET OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

HINDUSTAN
UNILEVER (in Rs. Cr.)
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 235.00 216.00 216.00 216.00 216.00
TOTAL SHARE 235.00 216.00 216.00 216.00 216.00
CAPITAL
Reserves and Surplus 47,439.00 7,998.00 7,627.00 7,065.00 6,528.00
TOTAL RESERVES AND 47,439.00 7,998.00 7,627.00 7,065.00 6,528.00
SURPLUS
TOTAL 47,674.00 8,229.00 7,867.00 7,281.00 6,744.00
SHAREHOLDERS
FUNDS
Minority Interest 20.00 17.00 18.00 20.00 22.00
NON-CURRENT
LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 0.00 0.00
Deferred Tax Liabilities 5,988.00 0.00 0.00 0.00 0.00
[Net]
Other Long Term 2,394.00 1,363.00 995.00 874.00 712.00
Liabilities
Long Term Provisions 1,578.00 1,227.00 1,082.00 800.00 514.00
TOTAL NON-CURRENT 9,960.00 2,590.00 2,077.00 1,674.00 1,226.00
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 99.00 0.00 277.00
Trade Payables 8,802.00 7,535.00 7,206.00 7,170.00 6,186.00
Other Current Liabilities 1,794.00 1,360.00 839.00 1,029.00 859.00
Short Term Provisions 507.00 422.00 523.00 688.00 392.00
TOTAL CURRENT 11,103.00 9,317.00 8,667.00 8,887.00 7,714.00
LIABILITIES
TOTAL CAPITAL AND 68,757.00 20,153.00 18,629.00 17,862.00 15,706.00
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 6,116.00 4,960.00 4,192.00 4,080.00 3,968.00
Intangible Assets 27,930.00 402.00 406.00 367.00 370.00
Capital Work-In-Progress 745.00 597.00 406.00 461.00 229.00
FIXED ASSETS 34,791.00 5,959.00 5,004.00 4,908.00 4,567.00
Non-Current Investments 2.00 2.00 2.00 2.00 6.00
Deferred Tax Assets [Net] 17.00 284.00 373.00 302.00 170.00
Long Term Loans And 251.00 238.00 215.00 184.00 168.00
Advances
Other Non-Current Assets 2,082.00 1,232.00 1,004.00 725.00 542.00
TOTAL NON-CURRENT 54,540.00 7,832.00 6,715.00 6,202.00 5,534.00
ASSETS
CURRENT ASSETS
Current Investments 2,707.00 1,253.00 2,714.00 2,871.00 3,788.00
Inventories 3,579.00 2,767.00 2,574.00 2,513.00 2,541.00
Trade Receivables 1,758.00 1,149.00 1,816.00 1,310.00 1,085.00
Cash And Cash 4,471.00 5,113.00 3,757.00 3,485.00 1,828.00
Equivalents
Short Term Loans And 0.00 0.00 4.00 4.00 0.00
Advances
OtherCurrentAssets 1,702.00 2,039.00 1,049.00 1,477.00 930.00
TOTAL CURRENT 14,217.00 12,321.00 11,914.00 11,660.00 10,172.00
ASSETS
TOTAL ASSETS 68,757.00 20,153.00 18,629.00 17,862.00 15,706.00
OTHER ADDITIONAL
INFORMATION
CONTINGENT
LIABILITIES,
COMMITMENTS
Contingent Liabilities 2,985.00 2,923.00 2,196.00 1,936.00 1,323.00
BONUS DETAILS
Bonus Equity Share 131.69 131.69 131.69 131.69 131.69
Capital
NON-CURRENT
INVESTMENTS
Non-Current Investments 0.00 0.00 0.00 2,871.00 3,788.00
Quoted Market Value
Non-Current Investments 2.00 2.00 2.00 2.00 6.00
Unquoted Book Value
CURRENT
INVESTMENTS
Current Investments 2,707.00 1,253.00 2,714.00 0.00 0.00
Quoted Market Value
Current Investments 0.00 0.00 0.00 0.00 0.00
Unquoted Book Value

CASH FLOW OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

HINDUSTAN
UNILEVER (in Rs.
Cr.)
NET 10,606.00 9,173.00 8,604.00 7,337.00 6,242.00
PROFIT/LOSS
BEFORE
EXTRAORDINAR
Y ITEMS AND
TAX
Net CashFlow From 9,163.00 7,623.00 5,800.00 6,064.00 5,185.00
Operating Activities
Net Cash Used In -1,528.00 1,791.00 -438.00 -1,068.00 -1,173.00
Investing Activities
Net Cash Used -9,309.00 -6,819.00 -5,390.00 -4,975.00 -4,214.00
From Financing
Activities
Foreign Exchange 0.00 0.00 0.00 0.00 0.00
Gains / Losses
Adjustments On 0.00 0.00 0.00 0.00 0.00
Amalgamation
 Merger Demerger
Others
NET INC/DEC IN -1,674.00 2,595.00 -28.00 21.00 -202.00
CASH AND CASH
EQUIVALENTS
Cash And Cash 3,516.00 621.00 649.00 628.00 830.00
Equivalents Begin
of Year
Cash And Cash 1,842.00 3,216.00 621.00 649.00 628.00
Equivalents End Of
Year

Profit & Loss A/c

PROFIT & LOSS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

ACCOUNT OF
HINDUSTAN
UNILEVER (in Rs.
Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM 45,311.00 38,273.00 37,660.00 34,619.00 33,895.00
OPERATIONS
[GROSS]
Less: Excise/Sevice 0.00 0.00 0.00 693.00 2,597.00
Tax/Other Levies
REVENUE FROM 45,311.00 38,273.00 37,660.00 33,926.00 31,298.00
OPERATIONS
[NET]
TOTAL 45,996.00 38,785.00 38,224.00 34,525.00 31,890.00
OPERATING
REVENUES
Other Income 513.00 733.00 664.00 569.00 526.00
TOTAL REVENUE 46,509.00 39,518.00 38,888.00 35,094.00 32,416.00
EXPENSES
Cost Of Materials 14,951.00 11,572.00 13,240.00 12,491.00 11,363.00
Consumed
Operating And 0.00 0.00 0.00 0.00 0.00
Direct Expenses
Changes In -391.00 -121.00 12.00 -71.00 156.00
Inventories Of
FG,WIP And Stock-
In Trade
Employee Benefit 2,229.00 1,691.00 1,747.00 1,745.00 1,620.00
Expenses
Finance Costs 108.00 106.00 28.00 20.00 22.00
Depreciation And 1,012.00 938.00 524.00 478.00 396.00
Amortisation
Expenses
Other Expenses 10,766.00 9,701.00 9,880.00 9,272.00 8,538.00
TOTAL EXPENSES 35,792.00 30,229.00 30,139.00 27,747.00 26,261.00
PROFIT/LOSS 10,717.00 9,289.00 8,749.00 7,347.00 6,155.00
BEFORE
EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX
Exceptional Items -227.00 -197.00 -227.00 -62.00 241.00
PROFIT/LOSS 10,490.00 9,092.00 8,522.00 7,285.00 6,396.00
BEFORE TAX
TAX EXPENSES-
CONTINUED
OPERATIONS
Current Tax 2,458.00 2,202.00 2,565.00 2,148.00 1,865.00
Less: MAT Credit 0.00 0.00 0.00 0.00 0.00
Entitlement
Deferred Tax 78.00 152.00 -79.00 -100.00 41.00
Tax For Earlier 0.00 0.00 0.00 0.00 0.00
Years
TOTAL TAX 2,536.00 2,354.00 2,486.00 2,048.00 1,906.00
EXPENSES
PROFIT/LOSS 7,954.00 6,738.00 6,036.00 5,237.00 4,490.00
AFTER TAX AND
BEFORE
EXTRAORDINARY
ITEMS
PROFIT/LOSS 7,954.00 6,738.00 6,036.00 5,237.00 4,490.00
FROM
CONTINUING
OPERATIONS
PROFIT/LOSS FOR 7,954.00 6,738.00 6,036.00 5,237.00 4,490.00
THE PERIOD
OTHER
ADDITIONAL
INFORMATION
EARNINGS PER
SHARE
Basic EPS (Rs.) 33.85 31.13 27.89 24.20 20.75
Diluted EPS (Rs.) 33.85 31.12 27.88 24.19 20.74
VALUE OF
IMPORTED AND
INDIGENIOUS
RAW MATERIALS
STORES, SPARES
AND LOOSE
TOOLS
Imported Raw 0.00 0.00 0.00 0.00 0.00
Materials
Indigenous Raw 0.00 0.00 0.00 0.00 0.00
Materials
STORES, SPARES
AND LOOSE
TOOLS
Imported Stores 0.00 0.00 0.00 0.00 0.00
And Spares
Indigenous Stores 0.00 0.00 0.00 0.00 0.00
And Spares
DIVIDEND AND
DIVIDEND
PERCENTAGE
Equity Share 8,811.00 5,196.00 4,546.00 3,896.00 3,571.00
Dividend
Tax On Dividend 0.00 1,048.00 913.00 755.00 693.00
 Equity Dividend 3,100.00 3,450.00 2,200.00 2,000.00 1,700.00
Rate (%)

FINANCIAL ANALYSIS

OBJECTIVES
 To assess profitability, liquidity, solvency.

 To analyze the financial performance of the company.

 To provide useful suggestion to improve the financial performance of the companies.

RATIO ANALYSIS
The term “ratio analysis” refers to the analysis of the financial statements in conjunction with
the interpretations of financial results of a particular period of operations, derived with the help
of 'ratio'. Ratio analysis is used to determine the financial soundness of a business concern. In
this blog post, we will introduce ratio analysis, what it is used for, what are the advantages and
disadvantages of it and its limitations.

A ratio is only comparison of the numerator with the denominator .The term ratio refers to the
numerical or quantitative relationship between two figures. Thus, ratio is the relationship
between two figures and obtained by dividing a former by the latter. Ratios are designed show
how one number is related to another. The data given in the financial statements are in absolute
form and are dumb and are unable to communicate anything. Ratios are relative form of
financial data and are very useful technique to check upon the efficiency of a firm. Some ratios
indicate the trend or progress or downfall of the firm. In the
view of the requirements of the various users of ratio, it is divided in to the following
important categories.

1. Liquidity ratios

2. Activity ratios

3. Profitability ratios

4. Turnover ratio

1. PROFITABILITY RATIOS Profitability ratios compare income statement accounts and

categories to show a company's ability to generate profits from its operations. Profitability ratios
focus on a company's return on investment in inventory and other assets.

a. NET PROFIT Net income, also called net profit, is a calculation that measures the amount of
total revenues that exceed total expenses.

Net Profit/Net Sales X 100

b. GROSS PROFIT RATIO The profit margin ratio, also called the return on sales ratio or
gross profit ratio, is a profitability ratio that measures the amount of net income earned with
each dollar of sales generated by comparing the net income and net sales of a company.

Gross Profit/Net Sales X 100

c. CASH RATIO The cash ratio or cash coverage ratio is a liquidity ratio that measures a firm's
ability to pay off its current liabilities with only cash and cash equivalents.

Cash & Cash equivalent/Current liabilities

2. ACTIVITY RATIOS Efficiency ratios also called activity ratios measure how well companies
utilize their assets to generate income.

a. Debtor turnover ratio Accounts receivable turnover is an efficiency ratio or activity ratio that
measures how many times a business can turn its accounts receivable into cash during a period.
 Total Sales / Account Receivables

b. Fixed assets turnover ratio The fixed asset turnover ratio is an efficiency ratio that measures
a company’s return on their investment in property, plant, and equipment by comparing net
sales with fixed assets.

Cost of goods Sold / Total Fixed Assets

3. LIQUIDITY RATIO

a. Current ratio The current ratio is a liquidity and efficiency ratio that measures a firm's ability
to pay off its short-term liabilities with its current assets.

Current Assets/Current Liabilities

b. Quick ratio The quick ratio or acid test ratio is a liquidity ratio that measures the ability of a
company to pay its current liabilities when they come due with only quick assets.

Liquid Assets/Current Liabilities

DEBT-EQUITY RATIO 0.00 0.00 0.00

CURRENT RATIO 0.85 1.14 1.03

ASSET TURNOVER RATIO 1.49 5.82 6.81

INVENTORY TURNOVER RATIO 15.28 15.34 15.99

DEBTORS TURNOVER RATIO 34.15 28.53 27.11

INTEREST COVERAGE RATIO 98.13 86.77 305.36

OPERATING MARGIN (%) 25.24 26.13 23.74

NET PROFIT MARGIN (%) 17.29 17.37 15.79

RETURN ON CAPITAL EMPLOYED (%) 34.30 91.93 94.87

RETURN ON NET WORTH (%) 28.68 85.89 81.93

Problems

The COVID-19 pandemic is one of the biggest challenges faced by the world in recent
times. As a Company driven by purpose, Hindustan Unilever Limited stands united with the
nation.
Hindustan Unilever (HUL), the country’s largest consumer goods company, on Thursday
reported a 7 per cent decline in volumes for the quarter ended March 31, 2020 FY20), faring
even worse than the demonetisation quarter (October-December 2016), when the fall was 4 per
cent.
The Street had factored in a drop of 2-4 per cent in Q4 volume growth on account of the
Covid-19 outbreak and subsequent lockdown. Sanjiv Mehta, chairman and managing director,
HUL, said production had come to a near standstill in the first phase of the lockdown and the
supply chain disruption was acute, contributing to the decline.

Profit before tax fell 10.6 per cent to Rs 1,992 crore for the period, while net profit declined 1.2
per cent year-on-year (YoY) to Rs 1,519 crore in Q4, as against a consensus estimate of Rs
1,821 crore. The company’s revenue was down 9.4 per cent to Rs 9,011 crore, as against the Rs
10,103-crore
Conclusion

The profit of the company is not in a good position for that company has to take alternative
actions such as

 Increase in procurement of raw material ,

 Reduction in expenses related to Production, and Control Like, Administrative, selling Etc
 If firms have low current ratio it should increase its current ratio where it can meet its
short term obligation smoothly.
 If Liquidity ratio of the firm is not better it is suggested that the firm maintain proper
liquid funds like cash and bank balance.
 It should enhance its employee’s efficiency, more training needed to its employees in
order to increase its production capacity and minimize mistakes while performing the
tasks, also more safety precaution need to implement to the employees who directly
working in production process.
 If the firm has high inventory, the firm must reduce the stock by increase sales.
 If direct material cost of the firm is very high it is feasible to decrease the direct material
cost by purchasing raw material from the other suppliers.
 The firms should have proper check on the manufacturing process of the plant.
 Thus, analysis of financial statements refers to the treatment of information contained in the
financial statement in a way so as to afford a full diagnosis of the profitability and financial
position of the firm concerned. The process of analyzing financial statements involves the
rearranging, comparing and measuring the significance of financial and operating data. Such a
step helps to reveal the relative significance and effect of items of the data in relation to the time
period and/or between two organizations. Balance sheet is the main document to access the
financial sound ability of the concern. The asset details in the balance sheet shall help the
investor to decide the investment ideas. The ratio analysis is the necessary tools to the investors
to necessarily select and built an effective portfolio. The data helps the investor in developing the
strategy for effective investment management.