The document discusses Hindustan Unilever Limited (HUL), one of India's leading fast-moving consumer goods companies. It owns popular brands like Dove, Lifebuoy, and Surf. The document provides financial details of HUL such as a net income of Rs. 4,315 crore for 2016. It also interprets financial ratios and statements for HUL for 2014-2016, showing trends like decreasing net profit but increasing cash flow from operations over those years. Key financial positions and performance metrics for HUL are analyzed and compared across the annual periods.

1. ACCOUNTS
ASSIGNMENT
INDIVIDUAL TERM
COMPANY: HUL
NAME : K.SAI SNEHA
ROLL.NO:161149
SEC : A

2. COMPANY NAME: HINDUSTAN
UNILEVER
 Hindustan Unilever Limited is one of the leading fast-moving consumer
goods companies in India. We own some of the best-known and best-
loved brands like Dove, Lifebuoy, Surf, Kissan, Bru and Pureit. We are
passionate about them and proud of the way they help people get more
out of life.
 Hul was fiunded in 1933,known as Hindustan lever lmt,later after merger
with lever brothers ,it is called as hindusthan unilever lmt.
 As per Nielsen market research data,2 out of 3 Indians use hul products.

3. Hul:
 NET INCOME : 4,315 CRORE
 INVENTORY VALUATION : CALCULATED ON WEIGHTED AVERAGE BASIS
 DEPRECIATION METHOD:STRAIGHT LINE METHOD
 DEBT :DEBT EQUITY RATIO IS ZERO, SO NO DEBT TO THE HUL COMPANY

4. INTERPRETATIONs:
 INTERPRETATION OF P&L A/C HORIZONTAL ANALYSIS:
 The gross sales from 2016 to 2015 has been decreased by 1,696 which in other terms is
increased by 5.18%,In which excise is lessed,it gives the net sales. Then coming to expenditure
there is a decrease in 0.09% change. All the expenses come under the total expenditures,in
which the depreciation is lessend by 0.11.
 Equity dividend is less by 0.31% and finally the earning per share were calculated which is
increased. There by we can interpret the financial position of the p&l a/c of hindustan
unilever ltd.
 INTERPRETATION OF P&L A/C VERTICAL ANALYSIS:
 The gross sales from 2016 to 2015 has been decreased by which excise and etc were lessend
and finally we get the net sales.then coming to expenditure there is a decrease of 0.27 to .18
respectively. All the expenses come under the total expenditures, in which the depreciation is
been frim 1.00 to 0.92 and all the profit before tax was decreased but provision for tax was
increased simultaneously.equity dividend is lessed and the earnings per share are been
increased from 0.05 to 0.06 respectively. There by we can interpret the financial position of
the company ,here finally the profit balance from the year 2016 to 2015 was decreased from
3.61 to 2.41

5.  INTERPRETATION OF BALANCESHEET’S HORIZONTAL ANALYSIS:
 1. EQUITY SHARES:
 The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding
 Starting from the share capital it doent have that much difference from 2016 to 2015 years.longterm borrowings,secured and
unsecured loans are here nil. Deferred tax or the liabilities are in an negative value approach respectively which shows other
current liabilities and finally all these are calculated under the name if the total current liabilities, same will be going to the
assets also. The other current assets are also called as the total assets.al the inventories are decreased by -74% to -34% from
2016 to 2015.
 The other current assets and the short term loans and advances from 64% to 29% and -45% to -29% and finally total under
total assets. Book value and the adjusted book value both are same with decrease from 16% to 7% from 2016-15. The total
liabilities are decreased and the current assests are used when required, there by we can interpret that the financial position of
the company is good.
 INTERPRETATION OF BALANCESHEET VERTICAL ANALYSIS:
 The total liabilities of hul company ltd. Has been decreased from 13,936.17 to 13,438.10 from 2016 to 2015 years. Then the
deffered tax,other longterm liabilities ,share capital. Sharecapital funds,etc all come under this increasing/decreasing trend of
the financial status of the company. Coming to the assets , work-in-progress,longterm loans and advances,contingent liabilities
etc all come under the total assets of the years 2016-15 and the financial position. When at the time of more current liabilities,
the current assets can be also treated to overcome those current liabilities of that particular financial year of the hindusthan
unilever .

6.  INTERPRETATION OF CASHFLOW STATEMENT:
 The net profit before tax was been slowly decreasing from 2014 to 2015 year
respectively. The cash flow from operating expenses increased from 2015 to 2016 year .
from -513 to -42 the investing activities gradually are decreased from 2016 to 2014 year
respectively. Coming to financial activities, the outflow is more than the inflow from 2016
to 14 years. The cash and cash equivalents are been decreased from 2014 -16 year -87.42
. opening cash was decreased from 2014 to 15 but from 15 to 16 it also is decreased but
not too much compared with the previous years. In 2014, the closing cash and the
closing equivalent was 620.61 and was increased to 721.97 and again then it was
decreased from 2015 to 16 to 634.55

7.  INTERPRETATION FOR THE RATIOS OF HUL :
 Per share values of the given shares were calculated to know about the financial position of the company i.e,
ratio analysis of this current present year with that of the previous years. Earnings per each are been calculated
individually. They were adjusted and reported again including the reported cash balance.
 Dividend per share is the income of equity share holders which is divided by the equity share holders .in 2014,
it is 13 then in 2015 it is 15 and in 2016 it is 16 the dividend per a share,which is gradually increased .
 Operating profit per share was also calculated by which we can see the increasing profit of operating
respectively.net operating income from the share is also increased from 2016-14.
 Next coming to profitability ratios,
 All the margins %s were been calculated including operating margin, gross profit margin,net profit margin
,adjusted cash margin ,finally the return on net worth is calculated and the return on longterm funds are
calculated.
 In the leverage ratio, the fixed assets turn over ratio is decreased gradually from 2016-14 years 9.42 to 8.63
Companies rely on a mixture of owners' equity and debt to finance their operations. A leverage ratio is any one
of several financial measurements that look at how much capital comes in the form of debt (loans), or assesses
the ability of a company to meet financial obligations.fixed assets turn over ratio is much more favourable .
 LIQUIDITY RATIO the ratio between the liquid assets and the liabilities of a bank or other institution. Inventory
turnover ratio is increased by 13 respectively.
 PAYOUT RATIOSDividend payout ratio is calculated by the cash profit and the net profit which is increased in
the years 2016-14