BY:

Apoorv Kalra Bhaumik Ghetia

Ankit Arora Gursimran Singh
Bharat Mendiratta Garima Sindhwani
About The Company
Hindustan Unilever Limited (HUL) is an
Indian consumer goods company based in Mumbai,
Maharashtra.
HUL's products include foods, beverages, cleaning
agents and personal care products.
Owned by Anglo-Dutch company Unilever which
owns a 52% controlling share in HUL.
Net income of HUL recorded for the year 2013-14 was
29,035.22 and for the year 2012-13 was 27,056.64
Net profit of the company for year 2013-14 was
3,867.49 crores up from last years figure of
3,796.67.
CASH FLOW STATEMENT OF HUL
FOR THE YEAR 2013-14
ALL FIGURES IN CRORES UNLESS STATED
Is the cash balance increasing with
an increase in profit ?
Cash to Sales Ratio : 28324.11/28640.16 = 98.89%
Net Cash from operating activities = 3724.15 cr
Net Cash from investing activities = (513.16) cr
Net Cash from financing activities = (2916.79) cr
Net Increase In Cash & Cash Equivalents = 294.20 cr
Major Sources of Cash Inflow are -:
Cash from operations
Sale of Current Investments
Maturity of Bank Deposits
ALL FIGURES IN CRORES UNLESS STATED
Financing of Investments
Purchase of Fixed assets 530.81
Investment in equity shares of a subsidiary 100.64
Purchase of current investments 9,537.48
Loans given to subsidiaries 261.77
Investment in bank deposits 2,549.72
12980.42
Sale proceeds of current investments 9,091.73
Loans repaid by subsidiaries 135.74
Maturity of bank deposits 2,641.19
Interest received 210.38
Dividend received from subsidiaries 130.63
12,209.67
Rest of the Investments i.e. 700cr (approx) were financed cash from operating
activities , financing activities and drawing down cash and cash equivalents.
ALL FIGURES IN CRORES UNLESS STATED
Companys ability to generate
future cash flows.
Unlikely to default on Interest payments
(Net operating cash flow = 3724cr , Interest paid = 40cr)

High levels of Reserves maintained by the company

Reduction in the amounts of dividends paid to the shareholders

The company has purchased current investments in the previous
fiscal year which will mature in the present fiscal year.

Investments in bank deposits.
ALL FIGURES IN CRORES UNLESS STATED
Is the negative cash flow from investing
activity straining the companys overall
cash flow?
(Investing) < Operating + (Financing)
Withdrawal from the cash balance not required
As a result, Cash (2013-14) > Cash (2012-13)
ALL FIGURES IN CRORES UNLESS STATED
Does the company enjoy financial
flexibility?
Yes!
Huge cash balance
High reserves
and surplus
Raise funds through
loans
D/E Ratio: 0.34
Can sell
current
investments
ALL FIGURES IN CRORES UNLESS STATED
Prospects of shareholders and
creditors?
Trade payable ->
Cash flow from
operation +
Provision
EPS: 17.56.
Dividend paid:
11.43.
Same percentage
can be maintained
looking at the EPS
for FY 2013-14
Provided, no
investment plans
elsewhere.
ALL FIGURES IN CRORES UNLESS STATED
THANK YOU