this ppt helps you to find out the financial position of hindustan unilever and its liquidity and profitability

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HINDUSTAN UNILEVER
LIMITED
Submitted To: Mr. GAURAV DAWAR
Submitted By: GROUP 3
AATISH RANJAN BM -018003
ABHISHEK DWIVEDI BM-018014
AKRITI MOHAN BM-018025
AAKASH SHARMA BM-018036
ANUBHA PRIYAM BM-018047
MUSKAN GARG BM-018058

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Hindustan Unilever limited
 Hindustan Unilever Limited (HUL) is a consumer goods company based in
Mumbai, Maharashtra
 It is a subsidiary of Unilever, a British-Dutch company. HUL's products
include foods, beverages, cleaning agents, personal care products and water
purifiers.
 HUL was established in 1933 as Lever Brothers and, in 1956, became
known as Hindustan Lever Limited, as a result of a merger among Lever
Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd
 With a brighter future and a heritage of over 80 years. nine out of ten
Indian households use our products every day to feel good, look good and
get more out of life; giving us a unique opportunity to build

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Business overview
 Each of Hindustan Unilever categories having – Home Care, Personal
Care, Foods and Refreshments.
 With over 40 brands spanning 20 distinct categories including soaps,
detergents, shampoos, skincare, toothpastes, deodorants, cosmetics, tea,
etc. the Company is part of the daily life of millions of consumers.
 It includes leading brands such as Lux, Lifebuoy, Surf excel, Rin, Wheel,
Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent,
Close-up, Axe, Brooke Bond, BRU, Knorr, Kissan, Kwality Wall’s and Pure it.
 Its products available in over seven million outlets across India.

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Board of Directors
Harish Manwani Chairman
Mr. Sanjeev Mehta Managing Director and C.E.O
Mr. Srinivas Pathak Executive director (Finance,I.T and
Chief Financial Officer)
Mr. Pradeep Banerjee Executive director Supply Chain
Mr. Dev Bajpai Executive director legal and corporate
affair and company secretary
Mr. Aditya Narayan Independent director
Mr.Kalpana Morparia Independent director
Mr. S. Ramadorai Independent director

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Pattern of Shareholding
 A shareholder or stockholder is an individual or institution (including
a corporation) that legally owns one or more shares of stock in a
public or private corporation.
 It shows how much amount of shares is hold by specific set of
investors
 Shareholding pattern shows exact percentage and amount of shares
hold by various people in the market

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HUL Competitors
Below are the 7 main HUL (Hindustan Unilever Limited) competitors :
 Marico.
 L'Oréal.
 Nirma Ltd.
 ITC Limited.
 Colgate-Palmolive.
 Procter and Gamble.
 Dabur India.

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Ratio Analysis
Liquidity ratios
 It means ability of a business to pay its short term liabilities
 If business is not able to pay its short term liabilities then its
credibility and credit rating affects
 Continuous default leads to Commercial bankruptcy
 Short term lenders and creditors of a business are very much
interested to know its state of liquidity because of their financial
stake

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1. Current ratios = Current Assests
Current liabilities
Years Current
Assests
Current
Liabilities
Current
Ratios
2017-2018 17149 8636 1.98:1
2015-2016 9384.97 9137.15 1.027:1
In financial year 2017-18 the current ratio of HUL is good that means
sufficient assests to pay current libilities
whereas as in 2015-16 current assest = current liabilites that means
company just able to cover all short term obligations
Acceptable current ratio 2:1

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Current Ratios neither be very high or very low
A very high current ratio implies heavy investment in current assets
which is not a good sign as it reflects under utilization or improper
utilization of resources.
A low ratio endangers the business and puts it at risk of facing a
situation where it will not be able to pay its short-term debt on time
2. Quick ratios
It is the ratio of quick (or liquid) asset to current liabilities. It is expressed as
Quick ratio = Quick Assets / Current Liabilities
The quick assets are defined as those assets which are quickly convertible
into cash.

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Year Quick Assets Current
liabilities
Quick ratio
2017-18 8780 8636 1.01:1
2015-16 11638.67 9137.5 1.27:1
Ideal Quick ratio 1:1
Interpretations
The ratio provides a measure of the capacity of the business to meet its short-
term obligations without any flaw.
Unnecessarily low ratio will be very risky and a high ratio suggests
unnecessarily deployment of resources in otherwise less profitable short-term
investments.

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3. Net working capital
It is the difference between a company’s current assets and current
liabilities.
A positive net working capital indicates a company has sufficient
funds to meet its current financial obligations and invest in other
activities.
Years Current
Assests
Current
Liabilities
Net working
ratios
2015-2016 14167.03 11381.56 0.244:1
2017-18 11159 7984 0.397:1
A good working capital ratio is considered anything between 1.2 and 2.0.

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Interpretations
 If a company continues to have a low working capital, or if it continues
to decline over a period of time, it may have serious financial trouble.
 The cause of the decrease in working capital could be a result of
several different factors, including decreasing sales revenues,
mismanagement of inventory or problems with accounts receivable.
 An excessively high working capital is not necessarily a good thing
either, since it can indicate the company is allowing excess cash flow to
sit idle rather than effectively reinvesting it in company growth.
Ideal ratio is 1.2 between 2