PRESENTED TO: Professor Manoj Kumar

By (Group 8) Madhuman Mishra (PGP27089) Mayank Gupta (PGP27090) Mrinalini Pandit (PGP27091) Pradnya Baburao Shirsat (PGP27099) Raj Kumar Binani (PGP27104) Rakshit Sinha(PGP27108) Vidushi Agarwal (PGP27131)

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FRA PROJECT: P&G

FINANCIAL REPORTS

HUL presents more information than P&G.

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Business functions : IT, Finance, R&D, HR etc HUL provides a forward-looking outlook as a separate section where they first detail out the growth prospects of Indian economy and its trickle-down effect on the FMCG sector.

Favourable for shareholders, employees, analysts etc.

CORPORATE GOVERNANCE
P&G:

Strong focus on compliance to government policies, ensuring accuracy of its statements, its policies related to lobbying, bribery, political contributions etc

Detailed policy guidelines related to employee behaviour, wages, working hours, employee privacy, HIV/AIDS policy, dealings with customers and suppliers, research involving animals, its commitment to society and environment

HUL:

Focussed more on product quality, environment sensitivity, safety and health of employees and giving equal employment opportunities

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P&G has a more holistic corporate governance policy vis--vis HUL

DEFERRED TAXES

Net deferred tax liabilities for P&G arise due to:

Excise and Sales Tax provisions Voluntary retirement schemes. Depreciation Other timing differences

Net deferred tax assets for HUL arise due to:

Retirement scheme.

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HUL has net deferred tax assets whereas P&G has net deferred tax liabilities.

DEFERRED TAXES
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DEFERRED TAXES
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Fixed Asset Policy

P&G Straight line

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Fixed Asset Policy

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Similar fixed asset

Short Term Investment Ratios

P/E Ratio
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Evaluate the expected returns on a stock The compounded annual growth rate of P&G is least of all.

Short Term Investment Ratios

Earnings per share

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Long Term Investment Ratios

Return on Capital Employed

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Explains the overall utilization of funds by a business enterprise

Long Term Investment Ratios

Return on Equity
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Represents the return on shareholders funds

Long Term Investment Ratios

Dividend per share

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Refers to the dividend declared per share

Long Term Investment Ratios

Earning per share

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Refers to the dividend declared per share

CURRENT RATIO

Ideal current ratio = 2:1 P&G has higher current ratio which is also close to 2:1 It is hence in a better position to meet its current obligations

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QUICK RATIO

Indicates better liquidity.

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P&G has higher quick ratio than others.

INVENTORY TURNOVER RATIO

Higher

ratio Indicates higher efficiency and lesser funds blocked in inventory

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DEBTORS TURNOVER RATIO

Represents the number of time average dues from customers are collected. Higher ratio represents better collection policy from debtors

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INTEREST COVERAGE RATIO

Higher ratio is better for a company to meet its interest obligations. Higher ratios increases the credibility of the company in the eyes of creditors

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DEBT EQUITY RATIO

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Gives an idea as to what percentage of the companys finances had come from loans and equity. Higher D/E ratio tells that the company has taken more loans

NET PROFIT RATIO

P&G has higher net profit ratio

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This ratio gives the Net profit margin of the company, net profit as a fraction of the sales

Thank You

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