Accounting For Management

Presented By:

Leeja shrestha

Asian Business School

MBA (1st Sem), 2011

Financial Analysis of Hindustan Unilever Ltd.

75 years of Independence…

Brands

HUL Company has divided its brand in three categories:

1) Food care

2) Home care

3) Personal care

 

Financial Analysis ?

It referred to financial statement analysis or accounting analysis.

Performed by professionals

Presented to top management

Assessment of the viability, stability and profitability of a business, sub-business or project.

Methods

Past Performance

( Like last 5 years)

Future performance

(Using Statistical Techniques)

Comparative performance

(Comparison)

About HUL

Incorporated in 1933

More than 15000 direct employees including more than 1400 managers

Two R&D centres in India (Mumbai and Bangalore)

Part of the Unilever Group worth €44.3 billion

Product Sectors

Sectors

Food

Soap

Cos-metics

HealthCare

HairCare

Deo-drants

OralCare

Deter-gents

Products

Food Care Brands

Personal Care Brand

Home Care Brands

Purposes & Principles

Working with integrity

Positive Impact

Continuous commitment

Working with others

Board of Directors

Mr. Harish Manwani (Chairman)

Mr. Nitin Paranjpe (CEO & Managing Director)

Mr. R. Sridhar (Executive Director and Chief Financial Officer)

Mr. Gopal Vittal (Executive Director, Home & Personal Care)

Mr. Pradeep Banerjee (Executive Director, Supply Chain)

Mr. D. S. Parekh (Independent Director)

Mr. A. Narayan (Independent Director)

Mr. S. Ramadorai (Independent Director)

Dr. R. A. Mashelkar (Independent Director)

Financial StatementFormal record of financial activities of a business

Presented in a structured manner 

Includes a) Balance Sheet

b) Profit & loss A/c and Trading A/c

Balance Sheet

Financial statement that summarizes a company's assets and liabilities.

Also shareholders' equity at a specific point of time.

Rs. 2633.25 crores as a total of assets and liabilities. (2010-11)

Profit and Loss A/C

Summarizes the revenues, costs and expenses incurred during a specific period of time.

Also known as a "statement of profit and loss“ or an "income statement“.

Net Profit during 2010-11 Rs.1466.20 crores

Cash Flow Statement

Depicts change in cash position from one period to another.

Three Activities

Operating Activities Rs.1890.57 (2010-11), decreasing trend

Investing Activities Rs.134.99 (2010-11), increasing trend

Financing Activities Rs. -2277.75, negative

Ratios

Analytical tool for measuring performance of an organization

Pinpoints a business strength and weakness

Compare today performance with past

Liquidity Ratio, Leverage Ratio, Profitability Ratio, Turnover Ratio

Calculations (2010-11)

Adjusted EPS Rs. 10.68 (Dec.)

Operating Profit Margin 13.53% (Dec.)

Gross Profit Margin 14.76% (Dec)

Net profit Margin Rs. 11.54% (Dec.)

Thank You