Guru bramha: guru devo maheshwara : guru shakshath parab

brama tasmai sree guruve namaha :

Good morning to every body

Hindustan Unilever Limited
Annual Report

Presentation
BY
B.Mohan
(07K01E0005)
CONTENTS

INTRODUCTION…….
PROFILE OF THE COMPANY
Mission.
Milestones
Present Stature …
Board of Directors
PERFORMANACE HIGHLIGHTS
Financial Analysis
Profit and Loss Accounts
Balance Sheet
Ratio Analysis
INTRODUCTION
    Hindustan Unilever Limited (HUL) is India’s largest fast moving
consumer goods company, with leadership in Home & Personal Care
Products and Foods & Beverages. HUL's brands, spread across 20
distinct consumer categories, touch the lives of two out of three
Indians. They endow the company with a scale of combined volumes
of about 4 million tonnes and sales of Rs.13,718 crores

HUL is also one of the country's largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government
of India.

Hindustan Unilever Limited

Type = Public
Founded = 1933
Headquarters = Mumbai, India
Key people = Harish Manwani Chairman , Nitin Paranjpe, CEO
Industry = Fast moving consumer goods
Products = tea, soap,detergents
Employees = 15,000
Parent = Unilever
 COMPANY PROFILE
Mission
The mission that inspires HUL's over 15,000 employees is to "add vitality to
life". With 35 Power Brands, HUL meets everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look
good and get more out of life.

It is a mission HUL shares with its parent company, Unilever, which holds
52.10% of the equity. A Fortune 500 transnational, Unilever sells Foods and
Home and Personal Care brands in about 100 countries worldwide.
HLL from Conception till date
1888: Lever soap, “sunlight” introduce in
india through import.
1918: Vanaspati (hydrogenated edible oil)
lauched through imports.
1930:Unilever created through the merge of
lever brothers, UK and Margarine Unie, the
Netherlands.
Unilever registers company- Hindustan
vanaspathi Manufacturing company(HVM)-
for local manufacture of vanaspathi.
Lever Brother’s India Limited(LBIL)
incorporated in india, to market personal
soaps.
 1996: HLL and associated company, Brook Bond
lipton limited, India’s biggest firm in food and
beverages, merge.
1997: HLL and GistBrocade BV from 50:50 joint
venture, lever Gist Brocades, to market ‘Gold seat
Femipan Instant yeast’ for banking industry.
1998: Group company Pond’s India limited merges
with hll, hll acquire lakme brand, factories, and
lakme ltd’s 50 percent equity in Lakme lever
limited. Hll acquires manufacturing right of kwality
ice-cream. manufacturing right of kwality ice-
cream.
Appellate authorithy of Government of india absolve
HLL of insider trading charges, made by SEBI in
1997, in BBLIL merger.

2000: HLL acquire Modern foods, the first public

sector company to be divested by the government
of india.
PERFORMANCE HIGHLIGHTS
products
LIFEBOUY
PEARS
LUX
PONDS
CLINIC PLUS
CLOSE UP
LAKME
DOVE
SURF EXCEL
ANNAPURNA
TAJ MAHAL
KISSAN
And other
Products
Ratio Analysis

Ratio analysis is one of the techniques of financial

analysis where ratios are used as a yardstick
For evaluating the financial condition and
performance of a firm.

Analysis and interpretation of various accounting

ratios gives skilled and experienced analyst a
better understanding of the financial condition and
performance of the firm than what he could have
obtained only through a perusal of financial
statements.
Types of ratio’s

Profitability ratio
Leverage ratio / Capital structure
ratio
Turn over ratio or activity ratio
Liquidity or Short term solvency
ratio’s
 Profitability ratio : Profitability ratio measures profitability of
a concern firm or company

Net profit ratio

Net profit ratio = (Net profit after taxes / Net sales )x 100
Years 2004 2005 2006 2007

NET PROFIT RATIO

Net profit after tax 146181.48 132282.6 152314.89 176767.28
sales 1059820.01 1156582.6 1241097.61 1391340.28

Net profit ratio 13.79304775 11.43736729 12.27259555 12.70482013

The net profit margin is

quiet impressive, and the
company is performing well.
Operating ratio
Operating ratio
= {(operating expenses + cost of goods sold )/ net sales )}x 100
Cost of goods sold = sales – gross profit

Years 2004 2005 2006 2007

OPERATING RATIO
Operating expenses 1200917.07 1079890.83 1012946.14 910806.71
Sales 1391340.28 1241097.61 1156582.6 1059820.1
Operating ratio 86.31368525 87.01095073 87.58095963 85.93974676

The ratio signifies that

the company has still to
be more efficient in
utilizing its net assets in
generating sales
revenue
 Turn over ratio (activity ratio ) : Turn over ratio measures the
efficiency or effectiveness with which a firm manages with
its resources or assets.
Inventory turn over ratio

Inventory turn over ratio = Cost of goods sold /Average inventory

Cost of goods sold = sales – gross
Average inventory = (Opening stock + Closing stock ) / 2

years 2004 2005 2006 2007

Cost of goods sold 1059820.01 1156582.6 1241097.61 1391340.28
Average inventory 152432.9 147529.68 149806.765 180407.175
Inventory turn over
ratio 6.952698597 7.839660467 8.284656638 7.712222532

The ratio signifies that the

company is effective in selling
its stocks.
 Working capital turn over ratio :

Working capital turn over ratio = Cost of goods sold / working capital
Working capital = Current assets – Current liabilities
Cost of goods sold = sales – gross profit

Years 2004 2005 2006 2007

Cost of goods sold 1059820.01 1156582.6 1241097.61 1391340.28
Working capital 78585.47 -17187.38 -9098.37 -47809.48
Working capital turn over ratio 13.4862082 -67.29254837 -136.4087864 -29.1017656

Working capital turn over

ratio is not satisfactory
Liquidity ratio : liquidity ratio measures the short time solvency of
the firm.

Quick ratio or acid test ratio = Quick assets / Current liabilities.

Quick assets = Current assets – Stock + Loans and Advances

Years 2004 2005 2006 2007

Quick assets 209360.87 201546.08 201546.08 208573.02
Current liabities 274608.99 308130.3 308130.3 389767.27

Quick ratio 0.762396271 0.654093674 0.654093674 0.535121946

The small ‘Quick ratio’,says that the

company's financial strength is not so
strong. In general, a quick ratio of 1 or
more is accepted by most creditors;
however, quick ratios vary greatly from
industry to industry and HUL does not
have as such any worries in getting
creditors.
HUL has strong financial positions in
many other aspects.
Current ratio = Current assets / Current liabilities

Years 2004 2005 2006 2007

current assets 353194.46 290942.92 318969.22 341957.79
current liabilities 274608.99 308130.3 328067.59 389767.27

current ratio 1.286172241 0.944220416 0.972266782 0.877338392

The current ratio decreasing

continuously says that the company is
in not relatively good at short-term
financial standings.

The ratio is an indication of a

company's ability to meet short-term
debt obligations; the higher the ratio,
the more liquid the company is.
Earning Per Share
Earning per share (EPS) = Net profit after Taxes / No
of share’s outstanding.

Year 2004-2005-2006-2007.

EPS 5.49 6.61 8.57 8.69

Earning per share is

performing well it is help full
maintain the good will among
the share holders