Homework Title / No.

: __Assignment-1: FINANCIAL STSTEMENT ANALYSIS____

Course Code : _COM309_

Course Instructor : _Ms. Anjanjot Kaur______________ Course Tutor (if applicable) : ____________

Date of Allotment : _____08/22/2012________________ Date of submission:______08/30/2012______

Students Roll No.____RQ4004b27________ Section No. : ____Q4004_________________________ Declaration: I declare that this assignment is my individual work. I have not copied from any other students work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person. Students Signature : _Anikesh Sareen_ Evaluators comments: __________________________________________________________________ ___ Marks obtained : ___________ out of ______________________

Content of Homework should start from this page only: Contents

S Topic No . 1. Company profiles: HUL ltd. DABUR ltd. 2. Financial statements: HUL ltd. DABUR ltd. 3. Financial statement analysis for HUL ltd. 1. Comparative Balance sheet for 2009-10 and 2010-11 2. Comparative income statement for 2009-10 and 2010-11 3. Common size balance sheet for 2009-10 and 2010-11

Page no.

4. Common size income statement for 2009-10 and 2010-11 4 Financial statement analysis for DABUR ltd. 1. Comparative Balance sheet for 2009-10 and 2010-11 2. Comparative income statement for 2009-10 and 2010-11 3. Common size balance sheet for 2009-10 and 2010-11 4. Common size income statement for 2009-10 and 2010-11 5. Comparative financial statement analysis of both companies for 2010-11 Bibliography

6.

Company Profile Hindustan Unilever Ltd

is India's largest fast-moving consumer goods. The company operates in seven business segments. Soaps and detergents includes soaps, detergent bars, detergent powders and scourers. Personal products include products in the categories of oral care, skin care (excluding soaps), hair care, talcum powder and color cosmetics. Beverages include tea and coffee. Foods include staples (atta, salt and bread) and culinary products (tomato-based products, fruit-based products and soups). Ice creams include ice creams and frozen desserts. Others include chemicals and water business. Hindustan Unilever Ltd was incorporated in the year 1933 as Lever Brothers India Ltd. In 1956, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd merged with the company and the name was changed from Lever Brothers Ltd to Hindustan Lever Ltd. The company acquired Lipton in 1972, and in 1977 Lipton Tea (India) Ltd was incorporated. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. Pond's (India) Ltd joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in the company's and the Group's growth curve. The removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. The erstwhile Tata Oil Mills Company (TOMCO) merged with the company with effect from April 1, 1993. In the year 1996, the company and Lakme Ltd formed a 50:50 joint venture company namely, Lakme Unilever Ltd, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Ltd sold its brands to the company and divested its 50% stake in the joint venture to the company. In the year 1994, the company and US-based Kimberly Clark Corporation formed a 50:50 joint venture company namely, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. The company also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. In the year 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In the year 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were

merged with Brooke Bond. Then in the year 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Ltd (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. Finally, BBLIL merged with the company with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. In January 2000, the government decided to award 74 per cent equity in Modern Foods to the company, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. The company's entry into bread is a strategic extension of the company's wheat business. In 2002, the company acquired the government's remaining stake in Modern Foods.. In the year 2002, the company made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. In the year 2003, the company acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. Also, the company launched Hindustan Unilever Network, Direct to home business. In the year 2004, the company launched 'Pureit' water purifier. In the year 2005, Lever India Exports Ltd, Lipton India Exports Ltd, Merry weather Food Products Ltd, Toc Disinfectants Ltd and International Fisheries Ltd were amalgamated with the company. In February 2006, Vasishti Detergents Ltd (VDL) merged with the company. In September 2006, Modern Foods Industries (India) Ltd and Modern Foods & Nutrition Industries Ltd was merged with itself. In October 2006, the company divested its 51% controlling stake in Unilever India Shared Services Ltd, now known as Capgemini Business Services (India) Limited (CGSL) to Cap Gemini SA. In March 2007, Sangam Direct, a non-store home delivery retail business, operated by Unilever India Exports Ltd (UIEL), a fully owned subsidiary was transferred to Wadhavan Foods Retail Pvt Ltd (WFRPL) on a slump sale business. Also, the company carried out demerger of its operational facilities in Shamnagar, Jamnagar and Janmam and formed three independent companies, namely Shamnagar Estates Pvt. Ltd, Jamnagar Properties Pvt Ltd and Hindustan Kwality Walls Foods Pvt Ltd. In June 2007, the company changed its name from Hindustan Lever Ltd to Hindustan Unilever Ltd. In the year 2008, the company announced its collaboration with the Indian Dental Association (IDA) in conjunction with World Dental Federation (FDI) through its Pepsodent, leading oral care brand to help improve the oral health and hygiene standards in India. In April 2008, the company demergered and transferred certain

immoveable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the company inaugurated the new corporate office of the company. In April 2010, the company approved the scheme of amalgamation of Bon Ltd, a wholly owned subsidiary of Hindustan Unilever Ltd., with the company. The appointed date for the abovementioned scheme was April 01, 2009 and the scheme shall be effective from April 28, 2010. Consequent to the amalgamation, Bon Ltd ceased to be a subsidiary of the company. During the year 2010-11, Kissan forayed into new market segment in three big categories. It launched Kissan Fruit & Soya, a delicious blend fruit juice and soya milk, which enjoys a differentiated proposition in this market. The brand also entered into the Indian (non-sweet) spreads market with the launch of Kissan Creamy Spread across key towns. In Bakery division, the company launched two new products, namely Chapi and Cream Rolls. During the year, the company divested 43.31% stake in Hindustan Field Services Pvt Ltd in favor of Smollan Group (the jv partner). Thus, Hindustan Field Services Pvt. Ltd. ceased to be a subsidiary company. Lakme Lever Pvt Ltd, a wholly owned subsidiary of HUL, expanded the network of Lakme Beauty Salons during the year with the opening of 11 company owned and managed salons, along with 18 franchisee salons. As of March 31, 2011, the company had over 35 brands spanning 20 distinct categories. Its portfolio includes household brands, such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and Pureit. In December 2011, the company demerged the FMCG exports business including specific exports related manufacturing units of the company into its wholly owned subsidiary Unilever India Exports Ltd (UIEL). The scheme became effective from January 1, 2012

Company Profile Dabur India Ltd is one of the leading FMCG Companies in India.
The company is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. They operate in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company's FMCG portfolio includes five flagship brands with distinct brand identities, Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Real for fruit juices and beverages and Fem for fairness bleaches and skin care products. The company

operates through three business units, namely consumer care division (CCD), international business division (IBD) and consumer health division (CHD). Their CCD business is divided into four key portfolios: healthcare, personal care, home care and foods. Their CHD business offers a range of healthcare products. Their IBD business includes brands, such as Dabur Amla and Vatika. The company has 19 state-of-the-art manufacturing facilities spread across the globe. Of these, 12 production facilities are located in India with key manufacturing locations being Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal) besides seven factories located at Sahibabad (Uttar Pradesh), Jammu, Silvassa, Alwar, Katni, Narendrapur, Pithampur and Nasik. The Foods business is serviced by manufacturing facilities at Newai (Rajasthan) and Siliguri (West Bengal). Outside India, the company has manufacturing facilities in Dubai, Sharjah, Ras-al- Khaimah, Egypt, Nigeria, Nepal and Bangladesh. The company has a wide distribution network, covering over 2.8 million retail outlets with a high penetration in both urban and rural markets. Their products also have a huge presence in the overseas markets and are available in over 60 countries across the globe. Their brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur India Ltd was incorporated on September 16, 1975 for manufacture of highgrade edible & industrial guargum powder and its sophisticated derivatives. In the year 1978, the company launched Hajmola tablet, an Ayurvedic medicine used as a digestive aid. In the year 1979, they set Dabur Research Foundation. Also, they commenced commercial production at the most modern herbal medicines plant in Sahibabad. In the year 1986, the company was converted into a public limited company. In the year 1988, they launched the pharmaceutical medicines. In the year 1989, the company converted the Ayurvedic digestive formulation into a children's fun product with the launch of Hajmola Candy. In the year 1992, they launched a new range of coconut oil under the brand name 'Anmol'. Also, they developed Dab 10, an intermediate for anti-cancer drug namely Taxol. The company entered into a joint venture agreement with Guldenhorst BV Netherland to form a company for manufacture and marketing of all types of bubble gum, chewing gum, toffees, chocolate, cocoa related products and sugar based spreading creams etc. In the year 1994, the company entered into capital market with their public issue. Also, they entered into oncology segment during the year. In the year 1996, the company entered into foods business with the launch of Real Fruit Juice, the first local brand of 100% pure natural fruit juices made to international standards. In 1997, the company set up a new manufacturing unit with a high degree of automation at Baddi (H.P.) to produce company's well-known

brands, namely Chyawanprash, Janma Ghunti, Ayurvedic Oils and AsvaArishtas. In the year 1998, Burman family handed over management of the company to professionals. The company signed a joint venture with Bongrain International SA of France to form a new company under the name of Dabon International Ltd. In the year 1999, the company entered into an agreement with their Spanish partner Agrolimen to offload their 49% stake in the joint venture company General De Confiteria India Ltd in favour of an Agrolimen group company. In the year 2000, the company launched Efarelle Comfort, a natural menstrual pain reliever. Also, the company's ayurvedic specialties division launched plain isabgol husk under the brand name Nature Care. In the year 2001, the company entered into the highly specialized area of cancer therapy In the year 2003, the company demerged their pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, the company now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business. Also, they made a tie up with Free Markets Inc for using leading edge technologies to execute online markets for its procurement needs. In the year 2005, the company acquired Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market for the consideration of Rs 143-crore all-cash deal. In the year 2006, Besta Cosmetics Ltd was amalgamated with the company with effect from April 1, 2006. Also, the company incorporated a subsidiary company under the name Asian Consumer Care Pakistan Pvt Ltd to sell FMCG products in Pakistan. In the year 2007, Dabur Foods Ltd was amalgamated with the company with effect from April 1, 2007 to extract synergies and unlock operational efficiencies. In the year 2008, they acquired Fem Care Pharma, a leading player in the women's skin care market. During the year 2009-10, the company acquired 20% of the equity share capital of Fem Care Pharma Limited (FEM) from the public shareholders, in addition to the controlling stake of 72.15% acquired from their existing promoters thereby increasing the total controlling stake to 92.15%. Also, as per the scheme of amalgamation, Fem Care Pharma Ltd was amalgamated with the company with effect from April 1, 2009. The scheme became effective on June 18, 2010 During the year 2010-11, the company acquired Turkey's leading personal care products maker Hobi Kosmetik Group, a leading personal care products through Dabur International Ltd, a wholly owned subsidiary of the company

for USD 69 million. In January 2011, they acquired 100% equity in Namaste Laboratories LLC of the US, a leading ethnic hair care group based in Chicago with operations in US, Europe and Africa, through Dermoviva Skin Essentials Inc, a wholly owned subsidiary of the Company for USD 100 million. They launched India's first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched in Orange and Mango flavoured variants. In the year 2011, the company launched their first-ever online shopping portal www.daburuveda.com. With this, the company is the first Indian FMCG company to launch a dedicated online shopping portal for its beauty products range. The portal will be the online gateway for consumers to know, understand, buy and gift the exclusive Dabur Uveda range of skincare products. The company acquired Ajanta Pharma's over-the-counter energizer brand '30-Plus'. In January 31, 2012, the company's step down subsidiary, Zeki Plastik Imalati Sanayi ve Ticaret Anonim Sirketi merged with another step down subsidiary - Hobi Kozmetik Imalat Sanayi Ve Ticaret Anonim Sirketi. Accordingly, Zeki Plastik Imalati Sanayi ve Ticaret Anonim Sirketi ceased to be the company's step down subsidiary company with effect from January 31, 2012.

Dabur ltd

Hul ltd

Hul ltd
Comparative income statement

Items Income Operating income Material consumed GP Expenses Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised TOTAL EXPENSES Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit

FY2009-10 17,769.12 8,984.50 8,784.62 498.74 936.3 3,262.12 1,289.76 5,986.92 2,797.70 144.36 2,942.06 6.98 184.03 2,751.05 648.36 2,102.69 55.37 43.97 2,202.03

FY210-11 19,689.91 10,199.25 9,490.66 825.99 961.27 3,811.55 1,227.36 6,826.17 2,664.49 254.81 2,919.30 0.24 220.83 2,698.23 573.87 2,124.36 184.67 -3.06 2,305.97

ABSOLUTE CHANGE 1,920.79 1,214.75 706.04 327.25 24.97 549.43 -62.4 NIL 839.25 -133.21 110.45 -22.76 -6.74 36.8 NIL -52.82 -74.49 21.67 129.3 -47.03 103.94

% CHANGE 10.81% 13.52% 8.04% 65.62% 2.67% 16.84% -4.84% NIL 14.02% -4.76% 76.51% -0.77% -96.56% 20.00% NIL -1.92% -11.49% 1.03% 233.52% -106.96% 4.72%

Commansize income statement

%AGE 11 100.00% 51.80% 48.20% 4.19% 4.88% 19.36% 6.23% NIL 34.67% 13.53% 1.29% 14.83% 0.00% 1.12% NIL 13.70% 2.91% 10.79% 0.94% -0.02% 11.71%

Items Income Operating income Material consumed GP Expenses Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised TOTAL EXPENSES Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit

FY2009-10 17,769.12 8,984.50 8,784.62 498.74 936.3 3,262.12 1,289.76 5,986.92 2,797.70 144.36 2,942.06 6.98 184.03 2,751.05 648.36 2,102.69 55.37 43.97 2,202.03

FY210-11 19,689.91 10,199.25 9,490.66 825.99 961.27 3,811.55 1,227.36 6,826.17 2,664.49 254.81 2,919.30 0.24 220.83 2,698.23 573.87 2,124.36 184.67 -3.06 2,305.97

%AGE 10 100.00% 50.56% 49.44% 2.81% 5.27% 18.36% 7.26% NIL 33.69% 15.74% 0.81% 16.56% 0.04% 1.04% NIL 15.48% 3.65% 11.83% 0.31% 0.25% 12.39%

Comparative balanace sheet

A Items Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total FY2009-10 FY210-11 ABSOLUTE CHANGE % CHANGE

218.17 2,364.68 2,582.85 -

215.95 NIL NIL 2,417.30 NIL NIL 2,633.25

-2.22 NIL NIL 52.62 NIL NIL 50.4

-1.02%

2.23%

1.95%

3,581.96 0.67 1,419.85 2,161.44 273.96 1,264.08 5,818.89 6,935.52 2,582.85

3,759.62 0.67 1,590.46 2,168.49 299.08 1,260.68 6,494.19 7,589.19 2,633.25

177.66 0 170.61 7.05 25.12 -3.4 675.3 653.67 50.4

4.96% 0.00% 12.02% 0.33% 9.17% -0.27% 11.61% 9.42% 1.95%

Commansize balance sheet

A Items Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Total Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans current liabilities & provisions Total FY2009-10 3,581.96 0.67 1,419.85 2,161.44 273.96 1,264.08 5,818.89 9,518.37 FY210-11 3,759.62 0.67 1,590.46 2,168.49 299.08 1,260.68 6,494.19 10,222.44 %AGE 10 37.63% 0.01% 14.92% 22.71% 2.88% 13.28% 61.13% 100.00% %AGE 11 36.78% 0.01% 15.56% 21.21% 2.93% 12.33% 63.53% 100.00%

218.17 2,364.68 -

215.95 NIL 2,417.30

2.29%

2.11% NIL

23.65% 0.00% NIL NIL NIL NIL 6,935.52 7,589.19 72.86% 74.24% 9,518.37 10,222.44 100.00% 100.00%

24.84% 0.00%

Dabur ltd Comparative balance sheet

A Items Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Miscellaneous expenses not written Total FY2009-10 FY210-11 ABSOLUTE CHANGE % CHANGE

86.76 0.14 662.48 24.27 81.8 855.45

174.07

87.31

100.63%

927.09 17.57 235.78 1,354.51

264.61 -6.7 153.98 499.06

39.94% -27.61% 188.24% 58.34%

687.23 236.28 450.95 23.31 348.51 941.77 911.83 2.74 855.45 -

766.88 269.32 497.56 11.92 519.23 1,317.26 1,074.41 82.95 1,354.51

79.65 33.04 46.61 -11.39 170.72 375.49 162.58 80.21 499.06

11.59% 13.98% 10.34% -48.86% 48.99% 39.87% 17.83% 2927.37% 58.34%

Commansize balance sheey

A Items Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Miscellaneous expenses not written Total FY2009-10 687.23 236.28 450.95 23.31 348.51 941.77 2.74 1767.28 269.32 497.56 11.92 519.23 1,317.26 82.95 2,428.92 13.37% 25.52% 1.32% 19.72% 53.29% 0.16% 100.00% 11.09% 20.48% 0.49% 21.38% 54.23% 3.42% 100.00% FY210-11 766.88 %AGE 10 38.89% %AGE 11 31.57%

Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans current liabilities & provisions Total

86.76 0.14 662.48 24.27 81.8 911.83 1767.28

174.07

4.91% 0.01% 37.49% 0.00% 1.37% 4.63% 51.60% 100.00%

7.17%

927.09 17.57 235.78 1,074.41 2428.92

38.17% 0.00% 0.72% 9.71% 44.23% 100.00%

Comparative income statement

A Items Income Operating income Material consumed gross profit Expenses Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised total expences Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit FY2009-10 2,867.42 1,384.29 1,483.13 58.17 212.34 474.79 187.9 933.20 549.93 14.85 564.78 13.28 31.91 5.66 513.93 93.7 420.23 13.1 -0.19 433.14 987.70 624.36 28.17 652.53 12.93 37.73 16.6 585.27 124.85 460.42 10.99 0.25 471.66 54.5 74.43 13.32 87.75 -0.35 5.82 10.94 71.34 31.15 40.19 -2.11 0.44 38.52 5.84% 13.53% 89.70% 15.54% -2.64% 18.24% 193.29% 13.88% 33.24% 9.56% -16.11% -231.58% 8.89% FY210-11 3,274.43 1,662.37 1,612.06 67.6 230.84 487.61 201.65 ABSOLUTE CHANGE 407.01 278.08 128.93 9.43 18.5 12.82 13.75 % CHANGE 14.19% 20.09% 8.69% 16.21% 8.71% 2.70% 7.32%

Commansize income statement

Items Income Operating income Material consumed gross profit Expenses Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised total expences Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit

FY2009-10 2,867.42 1,384.29 1,483.13 58.17 212.34 474.79 187.9 933.20 549.93 14.85 564.78 13.28 31.91 5.66 513.93 93.7 420.23 13.1 -0.19 433.14

FY210-11 3,274.43 1,662.37 1,612.06 67.6 230.84 487.61 201.65 987.70 624.36 28.17 652.53 12.93 37.73 16.6 585.27 124.85 460.42 10.99 0.25 471.66

%AGE 10 100.00% 48.28% 51.72% 2.03% 7.41% 16.56% 6.55% 32.54% 19.18% 0.52% 19.70% 0.46% 1.11% 0.20% 17.92% 3.27% 14.66% 0.46% -0.01% 15.11%

%AGE 11 100.00% 50.77% 49.23% 2.06% 7.05% 14.89% 6.16% 30.16% 19.07% 0.86% 19.93% 0.39% 1.15% 0.51% 17.87% 3.81% 14.06% 0.34% 0.01% 14.40%

Comparision both companies Incomestatement comparision

Items Income Operating income Material consumed gross profit Expenses Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised total expences Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit DABUR FY2010-11 3,274.43 1,662.37 1,612.06 67.6 230.84 487.61 201.65 987.70 624.36 28.17 652.53 12.93 37.73 16.6 585.27 124.85 460.42 10.99 0.25 471.66 % CHANGE 14.19% 20.09% 8.69% 16.21% 8.71% 2.70% 7.32% 5.84% 13.53% 89.70% 15.54% -2.64% 18.24% 193.29% 13.88% 33.24% 9.56% -16.11% -231.58% 8.89% 6826.17 2664.49 254.81 2919.3 0.24 220.83 NIL 2698.23 573.87 2124.36 184.67 -3.06 2305.97 -1.92% -11.49% 1.03% 233.52% -106.96% 4.72% HUL FY201011 19689.91 10199.25 9490.66 825.99 961.27 3811.55 1227.36 NIL 14.02% -4.76% 76.51% -0.77% -96.56% 20.00% % CHANGE 10.81% 13.52% 8.04% 65.62% 2.67% 16.84% -4.84%

Balance sheet comparasion

Items Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Miscellaneous expenses not written Total

DABUR FY201011

% HUL CHANGE FY2010-11

% CHANGE

174.07 927.09 17.57 235.78 1,354.51

100.63% 39.94% -27.61% 188.24% 58.34%

215.95

-1.02% NIL NIL 2417.3 2.23% NIL NIL 2633.25 1.95%

766.88 269.32 497.56 11.92 519.23 1,317.26 1,074.41 82.95 1,354.51 -

11.59% 13.98% 10.34% -48.86% 48.99% 39.87% 17.83% 2927.37% 58.34%

3759.62 0.67 1590.46 2168.49 299.08 1260.68 6494.19 7589.19 2633.25

4.96% 0.00% 12.02% 0.33% 9.17% -0.27% 11.61% 9.42%

1.95%

Analysis
In case of income statement of both the companies the gross profit of dabur ltd is more than hul ltd but if we see the net profit then it is higher in the case of hul ltd as the expenses of hul are much lesser than that of dabur ltd. In case of balance sheet of both the companies then dabur ltd is acquiring less assets than that of hul ltd and it directly indicates that hul is acquiring more of the market share too. Findings and suggestions From the above comparative income statements and balance sheets it is clear that if we take the overall performance then hul is really doing good as a common trend is seen that the net profit of hul is more than that of dabur ltd whether it is in case of comparative income statements and comparative balance sheet and common size balance sheet and common size income statement.
Interpretation:-

1. Significant increase in liabilities in FY2010-11, with 15887.88% increase in deferred tax liability. 2. Fixed assets saw an increase of 45.23% but investment sunk negative 25.11%. 3. Assets increased but not up to the level of percentage of liabilities. Interpretation: 1. Due to tough completion from other rival companies bharti airtel ltd spent more on selling and marketing (32.24% increase) in order to promote their products to earn more market share. 2. Increased charity & donations by 62.01% to create better goodwill for the company. 3. Due to increase in expenses, the company saw a decrease of 18.13% in net profits in FY2010-11.

Suggestions 1 dabur ltd should try to reduce its expenses 2 they should try to increase their equity capital.

3they should use their funds in more appropriate manner 4 they should look for more better resources of funding.
Bibliography
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http://www.rcom.co.in/Rcom/aboutus/ir/ir_financials.html http://money.rediff.com/companies/HUL-ltd/15200050/profit-andloss http://www.airtel.in/wps/wcm/connect/about+DABUR/Investor+Rel ations/Results/PG_Results?countrytabs=2 http://money.rediff.com/companies/RELIANC-ltd/15200022/profitand-loss

3.

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5. http://www.google.co.in /