Hindustan Unilever Balance sheet analysis 2019

Balance sheet analysis of HUL 2019

1. NS Nivethitha s PGDM I-B

2. About THE COMPANY British Dutch multinational company whose HQ is in Mumbai. Market leader in India focussing on Food, Beverages, personal care, water purifier, cleaning agents and consumer goods. Over 35 product brands are used by 2 billion people everyday. Most popular brands include Lifebuoy, Vanaspati, Pears, Brooke Bond, Pure It and Surf Excel.

3. Subsidiaries and Joint ventures Subsidiary Product Type Kwality Walls’ Frozen Desserts Ponds Beauty Brand Lakme Cosmetics Brand Daverashola Estates Pvt Ltd Dairy Product Manufacturer Jam Nagar Properties Pvt Ltd Real Estate Company Kimberly-Clark Corporation Baby Products Lipton Tea Brand

4. STANDALONE BALANCE SHEET EQUITIES AND LIABILITIES Shareholder's funds Equity Share Capital 216 Total Share Capital 216 Revaluation Reserves Reserves and Surplus 7,418.00 Total Reserves and Surplus 7,418.00 Employees Stock Options 25 Total Shareholders Funds 7,659.00 Non-current liabilities Other Long Term Liabilities 804 Long Term Provisions 1,049.00 Total Non-Current Liabilities 1,853.00

5. Standalone balance sheet ctd .. Current liabilities Trade Payables 7,070.00 Other Current Liabilities 782 Short Term Provisions 501 Total Current Liabilities 8,353.00 Total Capital And Liabilities 17,865.00 ASSETS Non-current assets Tangible Assets 3,907.00 Intangible Assets 436 Capital Work-In-Progress 373 Fixed Assets 4,716.00

6. Standalone balance sheet ctd .. Non-Current Investments 256 Deferred Tax Assets [Net] 339 Long Term Loans And Advances 396 Other Non-Current Assets 784 Total Non-Current Assets 6,491.00 Current Assets Current Investments 2,693.00 Inventories 2,422.00 Trade Receivables 1,673.00 Cash And Cash Equivalents 3,688.00 Short Term Loans And Advances OtherCurrentAssets 898 Total Current Assets 11,374.00 Total Assets 17,865.00

7. CONSOLIDATED BALANCE SHEET EQUITIES AND LIABILITIES Shareholder's funds Equity Share Capital 216 Total Share Capital 216 Revaluation Reserves Reserves and Surplus 7,627.00 Total Reserves and Surplus 7,627.00 Employees Stock Options 24 M inority Interest 1 8 Total Shareholders Funds 7,885.00 Non-current liabilities Long Term Borrowings Deferred Tax Liabilities [Net] Other Long Term Liabilities 995 Long Term Provisions 1,082.00 Total Non-Current Liabilities 2,077.00

8. CONSOLIDATED BALANCE SHEET CTD.. CURRENT LIABILITIES Short Term Borrowings 99 Trade Payables 7,206.00 Other Current Liabilities 839 Short Term Provisions 523 Total Current Liabilities 8,667.00 Total Capital And Liabilities 18,629.00 ASSETS Non-current assets Tangible Assets 4,192.00 Intangible Assets 406 Capital Work-In-Progress 406 Fixed Assets 5,004.00

9. CONSOLIDATED BALANCE SHEET CTD.. Non-Current Investments 2 Deferred Tax Assets [Net] 373 Long Term Loans And Advances 215 Other Non-Current Assets 1,004.00 Total Non-Current Assets 6,715.00 Current assets Current Investments 2,714.00 Inventories 2,574.00 Trade Receivables 1,816.00 Cash And Cash Equivalents 3,757.00 Short Term Loans And Advances 4 OtherCurrentAssets 1,049.00 Total Current Assets 11,914.00 Total Assets 18,629.00

10. components of balance sheet BALANCE SHEET EQUATION

11. EQUITIES Shareholder’s Funds : Share holder’s residual claim after debts have been paid. Equity Share Capital : It is the amount of money that investors put into a company in return for a share of the company's ownership.  Common stock Preferred Stock Additional Paid-in Capital Treasury Stock Retained Earnings Revaluation Reserves : Reassessment of asset when there is an increase in the value of assets to the previous value recorded. Eg. Land Value keeps rising in contrast to Building or Machinery value.

12. EQUITIES Reserves and Surplus : Fund is created out of profits that are to be shared between the partners or share holders. Eg. Bonus Shares Employee Stock options(ESO) : Company’s common stock is granted to a specific group of employees.   Minority Interest/Non Controlling Interest(NCI): Portion of a subsidiary corporation's stock that is not owned by the parent corporation.

13. LIABILITIES Long Term Liabilities : Liabilities that are due beyond a year or the normal operation period of the company. Long Term Provisions : A liability of uncertain amount and timing. Eg. Provision for depreciation. Long Term Borrowings : Company’s debt having a maturity longer than 12 months. Eg. Debentures Deferred Tax Liability : Tax due for the current period but not yet paid and obligated to pay in future.

14. Liabilities Ctd .. Short Term/Current Liabilities : Liabilities that are due within a year or the normal operation period of the company. Trade Payables : Amount owed by the company for goods delivered or services availed. Trade Payable = Creditors + Bills Payable Short Term Borrowings : Company’s debt having a maturity within12 months. Eg. Short Term Loans Short Term Provisions : A liability of uncertain amount and timing. Eg. Provision for doubtful debts

15. FIXED Assets Non Current/Fixed Assets : Company’s long term investments having a useful life of more than a year. Tangible Assets : Physical items that add value to business. Eg. Building, Machinery, Furniture. Intangible Assets : Non-physical items that are hard to evaluate. Eg. Patent, Copyright, Goodwill. Capital Work in Progress : All the expenses incurred for the generation of an asset before the balance sheet date . Eg. Cost due to construction of building .

16. FIXED ASSETS Non Current Investments : Company's long-term investments for which the full value will not be realized within the accounting year. Eg. Investments in other companies . Deferred Tax Assets : Asset that may be used to reduce taxable income. Eg : Advance Tax. Long Term Loans and Advances : A loan given to subsidiaries, governments or employees that are to be received in a period beyond one year.

17. CURRENT ASSETS Current Investments : Company’s short term assets that can be converted to cash within a year. Inventories : The cost of the merchandise purchased but not yet sold. Trade Receivable : Amounts billed by a business to its customers when it delivers goods or services to them. Cash and cash Equivalents : Investment with a short maturity period of 90 days or less is cash equivalent. They are the most liquid current assets. Eg. Treasury Bills Short Term Loans and Advances : A loan scheduled to be repaid in less than a year. 

18. COMPARISON ANALYSIS

19. INFERENCE The standalone balance sheet - Financial position of HUL alone. The consolidated balance sheet - Financial position of HUL along with its subsidiaries, associates and joint ventures. Consolidated Result > Standalone Result

20. Thank You!