PROJECT ON

ANALYSIS OF FINANCIAL STATEMENTS

OF

SUBMITTED TO:

DR. SHUBHRA ANAND

SUBMITTED BY:
Shashvat Mishra- 38263
Shreshtha Panwar-38270
Rimsha LatifRashi RajsinghVarsha Madhyan-38306

TABLE OF CONTENTS

Overview of HUL
Introduction to HUL
Vision
Mission
Brands
Balance Sheet
PnL
CSR Activities

THE HINDUSTAN UNILEVER LIMITED

INCORPORATED: 1933
HEADQUARTERS: MUMBAI ,MAHARASHTRA
INDUSTRY: CONSUMER GOODS.
INCORPORATED: 1933

KEY PEOPLE: HARISH MANWANI(CHARIMAN) NITIN PARANJE(MD)

HEADQUARTERS: MUMBAI, MAHARASHTRA.
INDUSTRY: CONSUMER GOODS
REACH: 6.4 MILLION RETAIL OUTLETS.
PARENTAGE: PART OF 44.3 BILLION EUROS OF UNILEVER GROUP.
PEOPLE: 16000 EMPLOYEES INCLUDING 1500 MANAGERS.
TURNOVER: 25,206 CRS
CENTRES: MUMBAI & BANGALORE, INDIA.

INTRODUCTION
Hindustan Unilever Limited (HUL) is the largest FMCG company in India. It is owned by the
British-Dutch company Unilever and has about 52% majority stake in Hindustan Unilever Limited.
It is headquartered in Mumbai, Maharashtra, India. Its products include foods, beverages, cleaning
agents and personal care products. As per Nielsen market research data, two out of three Indians use
HUL products. Hindustan Unilever Limited has over 35 brands spanning 20 distinct categories.

HISTORY AND BACKGROUND

Hindustan Unilever Limited was established in 1933 as Lever Brothers India Limited by Lever
Brothers. The company was renamed in June 2007 as Hindustan Unilever Limited. Lever Brothers
first commenced operations in India in the summer of 1888, when crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour
and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).In 1956, it became
known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd.

VISION
The four pillars of our vision set out the long term direction for the company where we want to go
and how we are going to get there: We help people feel good, look good and get more out of life with
brands and services that are good for them and good for others. We work to create a better future
every day. We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact. To earn the love and respect of India, by making a
real difference to every Indian. We will inspire people to take small everyday actions that can add up
to a big difference for the world.

MISSION
Unilever's mission is TO ADD VITALITY TO LIFE.
Unilevers mission is to add vitality to life. We meet every day needs for nutrition, hygiene, and
personal care with brands that help people feel good, look good and get more out of life. The main
aim of the company is to make a billion of Indians feel safe and secure

BRANDS
HUL is the market leader in Indian consumer products with presence in over 20 consumer categories
such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers
using its products. Sixteen of HUL's brands featured in the ACNielsen Brand Equity list of 100 Most
Trusted Brands Annual Survey (2014), carried out by Brand Equity, a supplement of The Economic
Times
The "most trusted brands" from HUL in the top 100 list are: Lux (6), Surf Excel (7), Clinic Plus (8),
Rin (13), Lifebuoy (15), Close up (21), Pond's (22), Pepsodent (24), Fair & Lovely (29), Dove (30),
Sunsilk (34), Vim (48), Wheel (67), Vaseline (70), Pears (78), Lakme (91).

The latest launches for Hindustan Unilever include: Knorr Chinese Noodles, Schezwan and Hot &
Spicy, Lakme Absolute Sculpt Range, Lakme Lip Love, Magnum Choco Cappuccino and Axe Gold
Temptation.

HUL ANNUAL FINANCIAL STATEMENT FOR THE YEAR 2013-2015

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Networth

Mar '15

Mar '14

Mar '13

12 mths

12 mths

12 mths

216.35
216.35
0.00
0.00
3,507.76
3,724.11

216.27
216.27
0.00
0.00
3,060.11
3,276.38

216.25
216.25
0.00
0.00
2,457.10
2,673.35

Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Revaluation Reserves
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

0.00
0.00
0.00
3,724.11
Mar '15
12 mths

0.00
0.00
0.00
3,276.38
Mar '14
12 mths

0.00
0.00
0.00
2,673.35
Mar '13
12 mths

4,430.63
0.67
1,973.10
2,456.86
479.01
3,277.93
2,602.68
782.94
2,537.56
5,923.18
1,496.41
0.00
7,419.59
0.00
6,367.06
3,542.22
9,909.28
-2,489.69
0.00
3,724.11
1,072.71
17.21

4,162.92
0.67
1,740.86
2,421.39
319.78
3,094.12
2,747.53
816.43
2,220.97
5,784.93
1,377.51
0.00
7,162.44
0.00
6,925.65
2,795.70
9,721.35
-2,558.91
0.00
3,276.38
991.20
15.15

3,868.95
0.67
1,576.05
2,292.23
215.64
2,330.66
2,526.99
833.48
1,707.89
5,068.36
1,604.91
0.00
6,673.27
0.00
6,260.09
2,578.36
8,838.45
-2,165.18
0.00
2,673.35
894.21
12.36

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)

Mar '15

Mar '14

Mar '13

12 mths

12 mths

12 mths

32,721.4
4
1,915.82
30,805.6
2
1,282.69
-58.28
32,030.0
3

29,557.90

27,283.59

1,538.77
28,019.13

1,473.38
25,810.21

849.71
166.38
29,035.22

1,215.30
31.13
27,056.64

15,690.2
8
304.62
1,578.89
0.00
0.00
7,965.31
0.00
25,539.1
0
Mar '15
12 mths
5,208.24
6,490.93
16.82
6,474.11
286.69
0.00
6,187.42
0.00
6,187.42
1,872.16
4,315.26
9,848.82
0.00
3,245.32
635.90

14,621.70

13,633.79

321.05
1,435.95
0.00
0.00
7,331.55
0.00
23,710.25

319.91
1,318.34
0.00
0.00
6,565.55
0.00
21,837.59

Mar '14
12 mths
4,475.26
5,324.97
36.03
5,288.94
260.55
0.00
5,028.39
0.00
5,028.39
1,160.90
3,867.49
9,088.55
0.00
2,811.43
461.54

Mar '13
12 mths
4,003.75
5,219.05
25.15
5,193.90
236.02
0.00
4,957.88
0.00
4,957.88
1,161.21
3,796.67
8,203.80
0.00
3,999.99
655.69

21,634.6
5
19.95
1,500.00

21,626.96

21,624.72

17.88
1,300.00

17.56
1,850.00

Book Value (Rs)

17.21

15.15

12.36

ANALYSIS OF BALANCE SHEET & P&L ACCOUNT:

Sales Turnover
34,000.00
32,000.00
Sales Turnover

30,000.00
28,000.00
26,000.00
24,000.00
2013

2014

2015

Sales turnover is the total amount of revenue generated by a business during the calculation
period. The concept is useful for tracking sales levels on a trend line in order to spot
meaningful changes in activity levels. The calculation period is usually one year. The revenue
included in this calculation is from both cash sales and credit sales.
HULs sales inventory has been on a constant rise since the last three years. From 2013 to
2014, an increase of 8.3% in sales turnover can be noticed which is followed by a rise of
10.7% in the year 2015.
This increase in Sales turnover signifies a stronger economy or industry, customers willing to
spend their money without having any cash flow problems, better government policies, and
increase in customer satisfaction and increasing population which leads to many new first
time buyers.
Prudent price hikes, successful re-launches and lower price-led competition also contributed
to the continuous increase in sales. Advertising and promotion spending grew at 6.2% which
would have also pushed for more sales.
Improvement in customer service process that took place in the year 2013 is also reaping
benefits. Customer service department should be handling issues in a timely manner. If
customer service is not performing adequately, one might see this reflected in the sales
turnover.

Raw Materials
16,000.00
15,500.00
15,000.00

Raw Materials

14,500.00
14,000.00
13,500.00
13,000.00
12,500.00
2013

2014

2015

Raw materials inventory is the total cost of all component parts currently in stock that have
not yet been used in work-in-process or finished goods production. There are two
subcategories of raw materials, which are:

Direct materials-These are materials incorporated into the final product. For example,
this is the wood used to manufacture a cabinet.

Indirect materials-These are materials not incorporated into the final product, but
which are consumed during the production process. For example, this is the lubricant,
oils, rags.

In HUL, expenses of raw materials have been rising constantly. From 2013 to 2014, expenses
on raw materials increased by 7.2%, followed by another increase of 7.4% in the year 2015.
The reasons for this rise primarily include the expansion of the organization and increase in
its sales. This growth in turn requires more raw materials which lead to an overall increase in
expenses on this overhead.
Rates in emerging markets are generating uncertainty, as well as being major factors in the
volatility of raw materials prices. With supplies of many raw materials becoming harder to
secure, commodity price volatility has become a challenging phenomenon, and it is up to
manufacturers to either absorb additional costs, find new ways to mitigate the expenses, or
pass price increases along to customers who are already reluctant to spend.es of commodities
Normal increase in the price of utilities like water, electricity etc also adds to increase in
expenses on raw materials

CORPORATE SOCIAL RESPONSIBILITY POLICY

Corporate Responsibility is integral to HULs vision, their Moto is: To earn the love and

respect of India by making a real difference to every Indian

HULs Corporate Responsibility (CR) philosophy is embedded in its corporate purpose and
Vitality mission. They have embraced the Unilever Sustainable Living Plan (USLP )
which contributes to activities listed in the Schedule VII of Section 135 of the Companies
Act, 2013. The USLP has three global goals namely help more than a billion people take
action to improve their health and wellbeing, reduce the environmental footprint of their
products and enhance the livelihoods of people as they grow our business.
The company firmly believes that it has commitment to all its stakeholders - consumers,
employees and the community in which it operates. It can fulfil this commitment only by
sustainable growth. The Vitality mission of the company aims to improve quality of life
through our products and through our interventions in the community.
On this background, HUL's key CR initiatives are undertaken with a long-term view.
Initiatives that are sustainable, that have long-term benefits and that have business linkage are
accorded priority. Some initiatives are brand driven, some are driven by our people and some
are driven by our processes.

CR Governance: HUL has established a CR Governing Council which is spearheaded

by Management Committee (MC) and which is responsible for the corporate reputation and
the CR strategy of the company.

CR Commitments: On the social front, they work in areas of Health & Nutrition
and Empowerment of Women, their economic agenda will be driven towards Enhancing
Livelihoods and the environmental agenda will focus on Water Conservation and cutting

Green House Gases. They have developed specific programs and initiatives to address each
of these.

Project Shakti is our initiative towards changing lives of women in

rural India. Through a program to educate and empower rural women in entrepreneur
Sakti Ammas HUL has created livelihoods of 75,000 women in a sustainable manner.
For example

We intend to partner with NGOs to augment their efforts by bringing in technical and
managerial expertise in this area.
For Enhancing Livelihood, HUL in partnership with Aide-et-Action India Private
Limited has established the Livelihood Education and Skill Development project
called Samruddhi (meaning prosperity) for the youth through Institute for Livelihood
Education and Development (iLEAD) Centre in Silvassa.
One of our other key initiatives is built around our commitment of reducing our carbon
footprint. We have embraced Unilever's ambitious target of 25% reduction in CO2 from
energy in manufacturing operations per tonne of production by 2012, against a baseline of
2004. HUL developed a new process of manufacturing soap based on 'Plough Share
Mixer' technology. This eliminates the need for steam in soap making. Since soaps are a
sizeable part of our business, the new technology cuts carbon emissions by 15,000 tons per
year.
Some of the Other Major CSR activities are:
Hand Washing Behaviour Change Programme: Promoting preventive healthcare and
sanitation.
Domex Toilet Academy (DTA): Sanitation& promoting preventive healthcare.
Prabhat: Prabhat (Dawn) is a program which focuses on communities around our
factories. The areas of intervention are Health & Hygiene, raising livelihoods and
conserving water.
Happy Homes - Asha Daan & Ankur: Setting up homes and hostels for destitute
women, abandoned and orphans children, HIV patients. Ankur is a centre for special
education for otherwise challenged.
Sanjivani: HUL runs a free mobile medical service camp
Sustainable Sourcing: Ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal welfare, agroforestry, conservation of natural
resources and maintaining of quality of soil, air and water.
Water Conservation Projects
Relief Funds.