ACCOUNTS PROJECT OUTLINE IN THE ANNUAL REPORT WE HAVE

The project should contain the following: 1)INTRODUCTION TO HUL (CAN BE PICKED UP FORM SYNOPSYS) 2) PROFIT AND LOSS ACCOUNT OF HUL (GIVEN) 3)BALANCE SHEET OF HUL (GIVEN) AND TREND ANALYSIS OF HUL 4)COMMON SIZE BALANCE SHEET OF HUL 5)COMPARATIVE STATEMENT 6) CASH FLOW STATEMENT 7) RATIO ANALYSIS 8) CONCLUSION

BALANCE SHEET: + TREND ANALYSIS

Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 215.95 215.95 0.00 0.00 2,417.30 0.67 2,633.92 0.00 0.00 0.00 2,633.92 Mar '11 12 mths Application Of Funds Gross Block 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 Current Liabilities Provisions Total CL & Provisions Net Current Assets Total Assets Contingent Liabilities Book Value (Rs) 3,759.62 1,590.46 2,169.16 299.08 1,260.68 2,811.26 943.20 281.91 4,036.37 1,099.72 1,358.10 6,494.19 6,264.21 1,324.98 7,589.19 -1,095.00 2,633.92 663.00 12.19 3,581.96 1,419.85 2,162.11 273.96 1,264.08 2,179.93 678.44 231.37 3,089.74 1,068.31 1,660.84 5,818.89 5,493.97 1,441.55 6,935.52 -1,116.63 2,583.52 468.49 11.84 218.17 218.17 0.00 0.00 2,364.68 0.67 2,583.52 0.00 0.00 0.00 2,583.52 Mar '10 12 mths Mar '10 12 mths

EXAMPLE: THIS IS HOW TREND ANALYSIS IS TO BE DONE FOR TOTAL SHARE CAPITAL THE TREND ANALYSIS WILL BE CALCULATED AS FOLLOWS:

Similarly we need to find the %s for the following: LIABILITIES SIDE: SOURCEs OF FUND : Total share capital , Reserves , Net worth , Secured loans , Unsecured loans , Total debt , Total Liabilities . ASSET SIDE: APPLICATION OF FUNDS : Gross Profit , LESS: Accum. Depreciation , Net Block , Working capital (or) Capital work in progress , Investments ,Inventories , Sundry Debtors , Cash and bank balance , Total current assets , Loans and advances , Fixed deposits , Total CA , Loans and advances , Current Liabilities , Provisions , Total CA and provisions , Net current assets , Total assets , Contigent Liabilities , book value .

COMMON SIZE BALANCE SHEET OF HUL: using the same

parameters as stated in the box above
Mar '11 % of balance sheet total Mar '10 % of balance sheet total

12 mths Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 215.95 215.95 2,417.30 2,633.92 0.00 0.00 0.00 2,633.92 Mar '11 12 mths Application Of Funds Gross Block 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 Assets 3,759.62 1,590.46 2,169.16 299.08 1,260.68 2,811.26 943.20 281.91 4,036.37 1,099.72 1,358.10 2,633.92 100 100 8.19

12 mths

218.17 218.17 2,364.68 2,583.52 0.00 0.00 0.00 2,583.52 Mar '10 12 mths 100

3,581.96 1,419.85 2,162.11 273.96 1,264.08 2,179.93 678.44 231.37 3,089.74 1,068.31 1,660.84 2,583.52 100

NOTE: HERE WE MINUS accum. Depreciation from gross block and then proceed.

METHOD HERE we need to calculate the % of the following parameters out of 100. Hence we take total liabilities and total assets as 100 % Eg) to calculate for total share capital we do:

Thus we write 8.19 in the column of % of balance sheet therefore total share capital is 8.19% of 100 % .....and so on do the rest..

COMPARATIVE STATEMENT:

(figures are in crores)

Mar '10

Mar '11

INCREASE
12 mths Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 215.95 215.95 2,417.30 2,633.92 0.00 0.00 0.00 2,633.92 Mar '11 12 mths Application Of Funds Gross Block 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 Current Liabilities Provisions Total CL & Provisions Net Current Assets Total Assets Contingent Liabilities Book Value (Rs) 3,759.62 1,590.46 2,169.16 299.08 1,260.68 2,811.26 943.20 281.91 4,036.37 1,099.72 1,358.10 6,494.19 6,264.21 1,324.98 7,589.19 -1,095.00 2,633.92 663.00 12.19 3,581.96 1,419.85 2,162.11 273.96 1,264.08 2,179.93 678.44 231.37 3,089.74 1,068.31 1,660.84 5,818.89 5,493.97 1,441.55 6,935.52 -1,116.63 2,583.52 468.49 11.84 218.17 218.17 2,364.68 2,583.52 0.00 0.00 0.00 2,583.52 Mar '10 12 mths 12 mths

DECREASE

METHOD SUBTRACT values of 2011 from 2010: If THE DIFFERENCE SO OBTAINED IS NEGATIVE THEN WE PUT THAT AMOUNT IN THE DECREASE COLOUMN AND IF THE DIFFERENCE OBTAINED IS POSITIVE THEN WE PUT THAT FIGURE IN THE INCREASE COLOUMN. EG) 215.95 218.17 = -2.22 SINCE THE amount obtained is negative thus we put this amount in the DECREASE COLOUMN.

-2.22

The term "trend analysis" refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information. In some fields of study, the term "trend analysis" has more formally-defined meanings. Although trend analysis is often used to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned. Trend analysis of financial statements Trend analysis, also known as index of financial statements analysis, is a simplified form of horizontal analysis, trend only calculated the percentage increase or decrease the absolute amount is not listed in columns. Trend analysis is by observing the successive phases of the accounting statements, comparing the amount of the related projects, analyze changes in some indicators of change, on this basis, determine trends, which may occur in the future to anticipate the results of An analytical method. The use of trend analysis, report users can learn the basic trend of changes in the project to determine whether or not this favorable trend of change, and to predict the future development of enterprises. Trend analysis is usually used method of preparation of financial statements over the years, will soon report for many years, at least the last 3 years or 5 years, or even 10 years of financial statements to be tied together in order to observe trends. Observed for several of the financial statements, more than just look at a report on the financial statements, can learn more information and circumstances, and facilitate the analysis of trends. Trend analysis should be calculated using the percentage trend. There are two trends in the percentage of that ratio and chain set. Fixed ratio is selected as the base period of a year, and then the rest of the year and the base period to calculate the trends in percentage, this can clearly reflects the project and the base period had not changed much. Chain refers to the number of projects this year compared to the number of the previous year, while the percentage of the calculated trend. Because of its previous one as a base, which more clearly illustrates the development of the project the rate of change. Financial ratios can be divided into five categories:

Liquidity (Solvency) ratios Financial Leverage (Debt) ratios Asset Efficiency (Management or turnover) ratios Profitability ratios Market value ratios The liquidity or solvency ratios focus on a firm's ability to pay its short-term debt obligations. As such, they focus on the firm's current assets and current liabilities on the balance sheet.

The most common liquidity ratios are the current ratio, the quick ratio, and the burn rate (interval measure). The financial leverage or debt ratios focus on a firm's ability to meet its long-term debt obligations. It looks at the firm's long term liabilities on the balance sheet such as bonds. The most common financial leverage ratios are the total debt ratios, the debt/equity ratio, the long-term debt ratio, the times interest earned ratio, the fixed charge coverage ratio, and the cash coverage ratio. The asset efficiency or turnover ratios measure the efficiency with which the firm uses its assets to produce sales. As a result, it focuses on both the income statement (sales) and the balance sheet (assets). The most common asset efficiency ratios are the inventory turnover ratio, the receivables turnover ratio, the days' sales in inventory ratio, the days' sales in receivables ratio, the net working capital ratio, the fixed asset turnover ratio, and the total asset turnover ratio. The profitability ratios are just what the name implies. They focus on the firm's ability to generate a profit and an adequate return on assets and equity. They measure how efficiently the firm uses its assets and how effectively it manages its operations. The market value ratios can only be calculated for publicly traded companies as they relate to stock price. The most commonly used market value ratios are the price/earnings ratio and the market-to-book ratio. These ratios allow you to compare your firm to others in your industry. They also allow you to compare different time periods of data for your firm to each other.