A

Report
on
“FUNDAMENTAL ANALYSIS OF HINDUSTAN
UNILEVER LIMITED”
Submitted for partial fulfillment of requirement for the award of degree
of
Bachelors of Business Administration
of
Netaji Subhas University
Jamshedpur (Jharkhand)
Session 2020-23

Supervised By External Guide Supervised By Internal Guide

Name: Mr. Akash Dubey Name: Mr. Vivek Singh
Designation: Wealth Manager Designation: Assistant Professor
Department: Finance Department: Management

Submitted by
Sourabh Kumar
Roll No. 2002078
Enrollment No. NSU2002078

BBA V SEM
2023
DEPARTMENT OF MANAGEMENT
NETAJI SUBHAS UNIVERSITY
POKHARI ,JAMSHEDPUR

1
 DECLARATION

I the undersigned solemnly declare that the report of the Summer Training work entitled
“Fundamental Analysis Of Hindustan Unilever Limited ”, is based my own work carried out during the
course of my study under the supervision of Mr. Akash Dubey.

I assert that the statements made and conclusions drawn are an outcome of the project work. I
further declare that to the best of my knowledge and belief that the project report does not contain any
part of any work which has been submitted for the award of any other degree/diploma/certificate in this
University or any other University.

(Signature of the Candidate)

Sourabh Kumar
Roll No.: 2002078
Enrollment No.: NSU2002078

i
CERTIFICATE BY ORGANIZATION

ii
 CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the project work entitled
“Fundamental Analysis of Hindustan Unilever Limited ” carried out by Sourabh Kumar bearing Roll
No. 2002078 & Enrollment No. NSU2002078 carried by under my guidance andsupervision for the
award of Degree in Bachelors of Business Administration of Netaji Subhas University, Jamshedpur,
Jharkhand, India.

To the best of the my knowledge the report

i) Embodies the work of the candidate herself,

ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the BBA degree of the University and
iv) Is up to the desired standard for the purpose of which is submitted.

(Signature of the Guide)

Name: Mr . Vivek Singh

Designation: Assistant Professor
Department: Management
Netaji Subhas University
Pokhari, Jamshedpur

The project work as mentioned above is hereby being recommended and forwarded for examination
and evaluation

iii
 CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled-

“FUNDAMENTAL ANALYSIS OF HINDUSTAN UNILEVER LIMITED ”

Submitted by

Sourabh Kumar , Roll No 2002078 , Enrollment No. NSU2002078 has been examined by
the undersigned as a part of the examination for the award of Bachelors of Business
Administration degree of Netaji Subhas University, Jharkhand.

Name & Signature of Name & Signature of

Internal Examiner External Examiner
Date: Date:

Forwarded by

Academic Head
Department of Management

iv
 ACKNOWLEDGEMENT

Acknowledgement is not merely a ritual, but also an expression of deep Indebtedness to all those who
have helped in the completion of the project. It is a matter of great pleasure to thank everybody who
helped me to complete my final research project successfully without them it would not have been
possible.

I am ineffably indebted to Mr. Akash Dubey (Wealth Manager) for conscientious guidance and
encouragement to accomplish this assignment. I am extremely thankful and pay my gratitude to my
faculty Mr . Vivek Singh for his valuable guidance and support on completion of this project in his
presence
I extend my gratitude to Netaji Subhas University, Jamshedpur for giving me this opportunity . I also
acknowledge with a deep sense of reverence, my gratitude towards my parents and members of
family, who has always supported me morally as well as economically.
At last but not least gratitude goes to all of my friends who directly or indirectly helped me to
complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.

(Signature of the student)

Name: Sourabh Kumar.

Roll No.: 2002078.
Sem.: 5th.

v
 PREFACE

Fundamental Analysis is the process of reviewing and analyzing a company’s financial statements to make
better economic decisions. The study is based on the two years of financial performance (2020-2021 to 2021-
2022) of Hindustan Unilever Limited. The tools used for the study are Liquid ratios, Profitability ratios and
turnover ratios. The suggestion given after the study is that the company has to maintain proper cash
management and the company has to maintain the same asset management.

Along with the help of detailed Company profiling, industrial analysis and financial analysis, a detailed
summarization of company’s performance in the present has been done. Investors can follow the findings
acquired at the end of the study to decide whether to go for a long-term investment with Hindustan Unilever
Limited
.
The main purpose of this study is to evaluate individual investor patterns for fundamental analysis. This
study is quantitative nature meaning it primarily deals with financial statement of Hindustan Unilever
Limited for the past two years. This study is based on secondary data which is taken from company website
and the annual reports. The data is analyzed by the industrial analysis, company operation analysis, ratio
analysis, and the performance of the company is clearly explained for the study period.

vi
Declaration .............................................................................................................................. i
Certificate By Organization ..................................................................................................... ii
Certificate By Internal Guide ................................................................................................. iii
Certificate By the Examiners .................................................................................................. iv
Acknowledgement................................................................................................................... v
Preface ................................................................................................................................... vi

TABLE OF CONTENT

S. No. Title Page No.

1 Introduction 1-7

2 Company Profile 8-12

3 Research Methodology 13-19

4 Data Analysis & Interpretation 20-35

5 Findings and Suggestions 36-38

6 Bibliography 39

vii
 LISTOF TABLES

TABLE TITLE PAGENO:

NO:

4.1 Table showing Current Ratio. 22

4.2 Table showing Quick Ratio. 23

4.3 Table showing Total Assets to Debt Ratio. 24

4.4 Table showing Debt Equity Ratio. 25

4.5 Table showing Proprietary Ratio. 26

4.6 Table showing Gross Profit Ratio. 27

4.7 Table showing Net Profit Ratio. 28

4.8 Table showing Stock Turnover Ratio. 29

4.9 Table showing Fixed Assets Turnover Ratio. 30

4.10 Table showing Working Capital Turnover Ratio. 31

4.11 Table showing Comparative balance sheet of 2018-19 32

and 2017-18

4.12 Table showing Comparative balance sheet of 2019-20 and 33

2018-19.

4.13 Table showing Comparative balance sheet of 2020-21 and 34

2019-20.

4.14 Table showing Comparative balance sheet of 2021-22 and 35

2020-21.

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CHAPTER – 1
INTRODUCTION

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 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION:
Fundamental analysis is a method of evaluating a security by examining its qualitative and
quantitative features, for deriving its intrinsic value. And in case of futures and forex, it
focuses on the overall state of economy, production, earning and management. It is an
important to conduct stock valuation and predict portable price evaluation for an
organization. It helps to make a projection on its business performance, to evaluate its
management and make internal business decisions, to credit its credit risk.

Fundamental analysis involves examining the economic, financial & other qualitative as
well as quantitative factors related to a security so as determine its intrinsic value. It is the
study of everything from the overall economy and industry conditions, to the economic
condition and management of specific companies (i.e., using real data to monitor a stock’s
value). The method utilizes items like revenues, earnings, return on equity and profit
margins to work out a company’s underling value and potential of future growth. One of
the main assumptions under fundamental analysis is that, albeit things get miss-priced
within the market from time to time, the worth of an asset will eventually gravitate
towards its true value. This seems to be an inexpensive bet considering the long upward
march of quality stocks generally despite regular setbacks and periods of irrational
exuberance. The key strategy for the fundamentalist is to shop for when prices are at or
below this intrinsic value and sell when they are overpriced.

The term Finance is for matters regarding the management, creation, and study of money
and investments. Specifically, it deals with the questions of how and why an individual,
company or government acquires the money needed (called capital in the company
context) and how they spend or invest that money. Finance is then often split per the
following major categories: corporate finance, personnel finance and public finance. At
the same time, and correspondingly, finance is about the overall "system" i.e., the financial
markets that allow the flow of money, via investments and other financial instruments
between and within these areas; this "flow" is facilitated by the financial services sector. A
major focus within finance is thus investment management – called money management
for individuals, and asset management for institutions – and finance then includes the
associated activities of securities trading and stock broking, investment banking, financial
engineering, and risk management.

1.2 SIGNIFICANCE OF THE STUDY:

 It helps to know about the current financial position of the company.

 It helps to critically examine and comment on the monetary proclamations of the organization.

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  This study speaks the monetary proportions in graphical frame so it can be effortlessly
comprehended by the general population associated with the business.
 Budgetary proportions of the organization are discovered to know the organization gainfulness
and for the future projections. So this study enlightens us concerning the future outline.

1.3 REVIEW OF LITERATURE

Andrew & Schmidgall (1993) has conducted a research on “ fundamental analysis on HUL ” has
classified financial ratios into five categories “liquidity ratios, solvency ratios, activity ratios, profitability
ratios, and operating ratios”. They indicated that financial ratios themselves do not provide valuable
information about a firm’s performance. The main objectives of the study was To analyze the overall
financial performance of Hindustan Unilever Limited. To evaluate the profitability of Hindustan Unilever
Limited. determine the liquidity position of the company.

The secondary data published from the company is used for the collection of information required for the
report. For the purpose of study, data of financial years of HUL has been taken into consideration. Ratio
analysis was the main tool used for analyzing the working capital, liquidity, solvency and profitability of
the company.

Zopounidis (2000) has conducted a research on “ fundamental anaylsis on HUL ” The researcher in his
study has proposed methodological framework based on financial ratio analyses for estimating small and
medium size enterprises performance. The main objectives of the study was to evaluate the profitability
of Hindustan Unilever Limited. determine the liquidity position of the company.Actions taken by
investors to understand and evaluate fundamental analysis. To Use various fundamental analysis
information available to investors todetermine pay call recognition.

The s data published from the company is used for the collection of information required for the report.
For the purpose of study, data of financial years of HUL has been taken into consideration. Ratio analysis
was the main tool used for analyzing the working capital, liquidity, solvency and profitability of the
company.

Gopinathan (2009) has conducted a research on “ fundamental anaylsis on HUL ” . The researcher
have presented that the financial ratios analysis can spot better investment options for investors as the
ratio analysis measures various aspects of the performance and analyzes fundamentals of a company or an
institution. The main objectives of study was to analyse the overall financial performance of Hindustan
Unilever Limited. identify the elements of the basic factors. Examine investor behaviour patterns.

The secondary data published from the company is used for the collection of information required for the
report. For the purpose of study, financial years has been taken into consideration. Ratio analysis was the
main tool used for analyzing the working capital, liquidity, solvency and profitability of the company.

Bhaskar Bagchie & J. C. (2012) has conducted a research on “ fundamental anaylsis on HUL ” . who
found a strong negative relationship between the measures of working capital management with corporate
profitability using a fixed effect model. They have empirically investigated the effect of working capital
management on firm’s profitability as measured by return on total assets and return on investment. The
main objectives of the study was to identify the elements of the basic factors. To analyse the overall

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financial performance of Hindustan Unilever Limited. The effect of working capital management on
firm’s profitability.

The secondary data published from the company is used for the collection of information required for the
report. For the purpose of study the measures of working capital management with corporate profitability
using a fixed effect model.

Goel (2012): has conducted a research on “ fundamental anaylsis on HUL ” . The study found that there
is no relationship between liquidity and solvency. He also found that the relatively low liquidity observed
in firms was important to increase profitability. It is also found that increased profitability from decreased
solvency can be offset by increased solvency. The main objectives of the study was to identify the
elements of the basic factors. Examine investor behaviour patterns. Actions taken by investors to
understand and evaluate fundamental analysis. Use various fundamental analysis information available
to investors to determine pay call recognition.

The secondary data published from the company is used for the collection of information required for the
report. For the purpose of study the measures of working capital management with corporate profitability
the relatively low liquidity observed in firms was important to increase profitability. It is also found that
increased profitability from decreased solvency can be offset by increased solvency.

Khamrui (2012) conducted a research on “ fundamental anaylsis on HUL ” . The study revealed that
both the companies in terms of profitability & liquidity position have a significant impact on profitability.
The main objectives of the study was to analyze the profitability of the selected FMCG like HUL
companies of India by comparing different profitability ratios. To evaluate the profitability of Hindustan
Unilever Limited. determine the liquidity position of the company.

The secondary data published from the company is used for the collection of information required for the
report. For the purpose of study, data of financial years of HUL has been taken into consideration. Ratio
analysis was the main tool used for analyzing the working capital, liquidity, solvency and profitability of
the company .

Joshi (2013) The study conducted a research on “ fundamental anaylsis on HUL ” . The study was
conducted on the basis of the profitability ratios to evaluate the profitability of the company. The study
was conducted for a period from 2008 to 2012. The main objectives of the study was to used the
statistical tools like Mean and ANOVA . Examine investor behaviour patterns. Actions taken by investors
to understand and evaluate fundamental analysis. Use various fundamental analysis information available
to investors todetermine pay call recognition

The data is based on the data collected through the websites and annual reports of the company has used
the statistical tools like Mean and ANOVA.

Paswan (2013) conducted a research on “ fundamental anaylsis on HUL ” The study proved that the
company was able to repay its debts during the study period. It also shows more use of proprietary funds
in acquiring total assets. The study was conducted for a period of 2005-06 to 2010-11. The main
objectives of the study was to study concentrated on various accounting ratios (Current ratio, Quick ratio,
Proprietary ratio, Debt equity ratio, etc). The expert has used the tools like Average, Standard Deviation
and Coefficient of variation. To analyse the overall financial performance of Hindustan Unilever Limited.

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Swetha Mehrota (2013) conducted a research on “ fundamental anaylsis on HUL ” . The study was
conducted by the researcher on HUL. In this study, traditional methods of data analysis and ratio analysis
as tools of financial statement analysis for examining the degree of efficiency of working capital
management have been adopted during the study period. The main objectives of the study was to analyze
the ratio, thereby to know the companies respective positions in the market. To check whether
fundamental analysis alone can evaluate investment opportunities in the share. Forecast the future
performance of the selected companies. To recognize the suitability of the shares for investment in long
term.

Titto Varghese (2014): conducted a research on “ fundamental anaylsis on HUL ” .The researchers
have used ratio analysis technique for making the analysis of liquidity profitability relationship of HUL.
The study also concluded that the profitability position was strong were as the liquidity position was not
satisfactory. The main objectives of the study was to identify the elements of the basic factors. Examine
investor behaviour patterns. Actions taken by investors to understand and evaluate fundamental analysis.
Use various fundamental analysis information available to investors todetermine pay call recognition.

Dr. Sukhmani D. (2011) conducted a research on “ fundamental anaylsis on HUL ” and concluded in
their study that, changes in lifestyle, rising incomes and a focus on value, are pushing up growth for
different product categories in the rural areas. But, in order to be successful, organizations need to
develop business models and marketing mix strategies that are developed in accordance with this changed
scenario in the rural markets of India. The main objectives of study was to examine the importance of
selling strategies with reference to the HUL in India . To study the marketing mix strategies to attract
consumers. the perceptions of buying behaviours of the consumers .

The data is based on the data collected through the websites and annual reports of the company.

Kulkarni, Dr. Hundal B., (2011) conducted a research on “ fundamental anaylsis on HUL ” concluded
in his study that, the rural market in India is quite fascinating and challenging in spite of all the
difficulties existing. The potential is enormous. The main objectives of the study was to examine the
importance of selling strategies with reference to the HUL in India . To study the marketing mix
strategies to attract consumers. The perceptions of buying behaviours of the consumers .

The data collected for this project work was obtained from different websites of different.

Wang Aimin and Sumayya Begum (2012) conducted a research on “ fundamental anaylsis on HUL ”
Undergone a study titled “Investigating the Impact of Marketing Mix elements on tourist satisfaction”.
The main object of this study was to examine the impact of marketing mix elements on tourist
satisfaction by adopting the statistical techniques, correlation and regression. The study reveals six, out
of seven marketing mix elements such as Product, Price, Place, Promotion, People, Process, Physical
evidence have positive relation towards tourist satisfaction but the Price imposed by authority is not
satisfactory to the visitors.

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The data used in this study is collected through different websites, brochures, and articles. The periodicity
of this project report was from 2007-2011. The technique used in this report is survey and questionnaire
method.

Shukla Pritesh kumar Y(2008) conducted a research on “ fundamental anaylsis on HUL ” in his
research topic “An empirical study of selected customers on rural marketing strategies of selected
products of Hindustan Unilever Limited (H.U.L.) in Gujarat” studies that, Rural Marketing Strategies of
selected H.U.L. products and its influence on buying behavior of the selected rural respondents from rural
market in Gujarat State, examine the factors responsible for increasing competitiveness among F.M.C.G.
The main objectives of the study was to examine investor behaviour patterns. Manufacturers for entry
into the rural market segment of Gujarat State, the impact of various factors affecting the rural consumer
buying behavior, towards selected H.U.L. products in rural areas of Gujarat State. Use various
fundamental analysis information available to investors todetermine pay call recognition.

The data used in this study is collected through different websites, brochures, and articles. The periodicity
of this project report . The technique used in this report is survey and questionnaire method.

Parasuraman, Berry and Zeithaml (1990) conducted a research on “ fundamental anaylsis on HUL ”
Assess the topic “Current Standing of the 4P’s Marketing Mix framework as the dominant marketing
management”. In This study author highlights a realistic picture on the current standing of an old and
ongoing debate about the merits of the 4P’s marketing mix as a present and future marketing
management. The objectives of the study was the new concepts proposed should adequately deal with
new realities of marketing. The 4P’s marketing mix as a present and future marketing management. To
analyze the financial performance of the company. Provide useful suggestion to improve the financial
performance of the companies.

The data used in this report work was taken through some journals and websites. The periodicity of this
report. Questionnaire and Survey method was used here to complete the research work.

1.4 RESEARCH GAP:

Though the currently available literature on study of HUL in FMCG sector of India is very
few, still a lot of research needs to be done in specific geographic national market as the
exploration demonstrates that administration can't assume that cooperative energy can be
created and benefits can be expanded essentially by going for mergers and acquisitions.
opined that further examinations may build up some substitute proportions of
merger‐related gains as monetary measures have confinements to catch the full effect of
merger on corporate execution. Additionally, an investigation giving subtlety bits of
knowledge into the reasons and examples of post‐merger corporate execution over the
sorts of mergers and industry would be helpful. The writing survey led for the momentum
research clarifies that exploration isn't done on impacts of HUL on chose organizations of
FMCG segment, either as a rule or with reference to India. Subsequently, it is chosen to
lead an investigation on HUL of chose FMCG organizations of India.

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1.5 OBJECTIVES :

 To analyse the overall financial performance of Hindustan Unilever Limited.

 To evaluate the profitability of Hindustan Unilever Limited.
 To determine the liquidity position of the company.
 To identify the elements of the basic factors.
 Examine investor behaviour patterns.

1.6 HYPOTHESIS :

Null hypothesis (H0): - There is no significant difference between the mean of profit
margin and assets turnover

1.7 SCOPE OF THE STUDY:

The outcome of the study is multi-faceted. It will allow researchers to explore the various initiatives
undertaken by the HUL and it will also help the new investors to decide whether the decision of
investment in the firm for a long term is profitable or not .

1.8 LIMITATIONS OF THE STUDY:

● The study is restricted only the 5 financial years i.e. 2017-18 to 2021-22.

● The study completely based on secondary data and the accuracy of the analysis depends on the data obtain

● This study may not be extensive enough to cover all the ratios to be considered in evaluating the financial
soundness of the company accurately

1.9 REFERENCES:

• www. hul.co.in
• www.fmcg.com
• www.google.com
• www.ijcrt.org
• www.scribd.com
• www.bartleby.com

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 CHAPTER-2
COMPANY PROFILE

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 CHAPTER-2
COMPANY PROFILE

2.1. COMPANY PROFILE:

“READY WEALTH”:-

Ready Wealth is an independent wealth management firm, working with salaried individuals,
entrepreneurs and family offices to manage their complete finances and prepare them for life-changing
liquidity events.Our goal is to help you ready your wealth, in alignment with your values, in order to
accomplish what is most important to you. We offer comprehensive solutions that encompasses all
aspects of your financial life to help simplify decision making in pursuit of your financial and investment
goals ultimately, having a positive, lasting impact on your family, your legacy, your community, and the
world at large.Free from corporate ownership, we can offer true transparency and objective solutions. Our
independence improves our ability to customize our solutions, to provide access to a broader range of
resources and partners, and to deliver more comprehensive reporting, all backed by the right technology
to fully serve our clients.

Our team consists of BIT & ICFAI Alumni who have spent several years in the Financial industry solving
problems in investing and personal finance through research and analytics. Sajdin, our founder having
years of experience in Wealth management has worked with biggest brands in Banking, NBFC & Fintech
space. Keerthi, our Co Founder has been part of one of World's biggest Management Consultancy and
Solutions Firm's has a deep interest and expertise in personal finance management and planning. Both are
on a mission to help clients create the life they want.We Support your commitment to drive purpose for
your Family and Community through the values that drive our own Firm.

Wealth Management is continous investment advisiory process that is a combination of financial

planning, investment portfolio management and a number of aggregated financial services. It offers
several strategies and plans that allow affluent individual or companies to attain all possible financial
goals in a systematic manner. The goal of wealth management is to sustain and grow long term wealth.

From an affluent person’s stand point, wealth management is a science of enhancing their financial
situation in a strategic manner. It is a continuous investment advisory process that is a combination of
financial planning investment portfolio management and a number of aggregated financial services. It
offer several strategies and plan that allow individual or companies to attain all possible financial goals in
a systematic manner.

2.2. VISION, MISSION AND GOALS :

VISION

We believe that successful entrepreneurs and professionals want and need a comprehensive planning
process to ensure the eventual transition and legacy of their business and their wealth. Unfortunately,
most individuals are too busy running their hectic day-to-day lives and don’t take the time to put an
integrated and comprehensive plan in place.

Our vision is to provide a roadmap to ensure that wealth (which includes: financial, relational, mental,
emotional, physical, family and spiritual wealth) is protected through all stages of the financial life cycle.

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 We bring a unique perspective forged over decades of experience as a multi-disciplinary group. Using our
proprietary process built upon trust and clear communication, our perspective encompasses:

MISSION

Make the Complex, Simpler. From Protecting, leveraging to investing; our goal is to be straightforward
and help with your unique needs.

GOALS

Our goal is to help you ready your wealth, in alignment with your values, in order to accomplish what is
not important to you. We offer comprehensive solutions that encompassed all aspects of your financial
life to help simplify decision making in pursuit of your financial and investment goals- ultimately, having
a positive, lasting impact on your family, your legacy, your community, and the world at large.

2.3 ORGANIZATIONAL STRUCTURE:

Organizational Structure is the formal division of tasks, responsibilities and authority in an

organization set-up. The framework, typically hierarchical , within which an
organization arranges its lines of authority and communications, and allocates rights and
duties. Organizational structure determines the manner and extent to which roles , power
, and responsibilities are delegated, controlled , and coordinated , and how information
flows between levels of management.

An structure depends entirely on the organization's objectives and the strategy chosen
to achieve them. In a centralized structure, the decision making power is concentrated in
the top layer of the management and tight control is exercised over departments and
divisions. In a decentralized structure, the decision making power is distributed and the
departments and divisions have varying degrees of autonomy . An organizational
chart illustrates the organizational structure.

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2.4 SERVICES OF READY WEALTH:

The services of ready wealth are as follows:-

I. Protect Insurance

Get the best insurance (Auto, Home, Life) policy by comparing multiple insurance
providers in India all from one source.

II. Leverage –Loans

We offer the best options for loans in the industry by consolidating from the best providers
to compete for your business.

III. Invest - NCD's, Gold & FD's

We offer unique investments opportunities from pre-ipo to gold, NCD‟s and FD are before
others get an access to it.

IV. Strategic Investments

We offer a plethora of investment and wealth building options backed by years of

research and analysis and experienced investment experts.

V. Aspire - Unique Assets

We offer access to privileged class of assets before anyone else to leverage its maximum
value such as distressed and pre-construction real estate assets.

VI. Real Estate – All Properties

We offer exclusive access to pre-construction, privileged and unique real estate assets in
both residential and commercial space to offer the best return on your investments.

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2.5 REFERENCES:

 www.wikipedia.com
 www.investmentpedia.com
 www.slideshare.com
 www.edubirdie.com
 www.researchgate.com

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 CHAPTER – 3
RESEARCH METHODOLOGY

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 CHAPTER 3
RESEARCH METHODOLOGY

3.1 COLLECTION OF DATA:

Data sources: Having defined and formulated a research problem and having determined
the objectives of research , a researcher has to face the problem of data collection.
Data collection methods can be broadly classified into:

 Primary Data

 Secondary Data

Data collected from Primary methods is known as Primary data and data collected from
Secondary methods is known as Secondary data.

In this project I have used Secondary data most of which was obtained from internal
records of the company.

I have collected Secondary Data from:-

 Company Website
 Other Websites like Slideshare , LinkedIn , Scribd
 Relevant files of the company
 Journals

3.2 PERIODICITY:

In this project I have studied the Balance Sheet and Income Statement of Hindustan
Unilever Limited for the past 5 years starting from FY 2018-19 to FY 2021-22.

3.3 OBJECTIVES OF THE STUDY:

 To analyse the overall financial performance of Hindustan Unilever Limited.

 To evaluate the profitability of Hindustan Unilever Limited.
 To determine the liquidity position of the company.
 To identify the elements of the basic factors.
 Examine investor behaviour patterns.
 Actions taken by investors to understand and evaluate fundamental analysis

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  To Use various fundamental analysis information available to investors to determine pay call
recognition.

3.4 LIMITATIONS OF THE STUDY:

● The study is restricted only the two financial years i.e.2017-18 to 2021-22.

● The study completely based on secondary data and the accuracy of the analysis depends on the data
obtain

● This study may not be extensive enough to cover all the ratios to be considered in evaluating the
financial soundness of the company accurately

3.5 TECHNIQUES USED IN THE STUDY:

 Balance Sheet
 Income Statement
 Ratio Analysis
 Line Graphs

3.6 HYPOTHESIS:

Null hypothesis (H0): - There is no significant difference between the mean of profit margin and assets
turnover.

3.7 SCOPE OF THE STUDY:

The outcome of the study is multi-faceted. It will allow researchers to explore the various initiatives
undertaken by the HUL and it will also help the new investors to decide whether the decision of
investment in the firm for a long term is profitable or not.

3.8 TOOLS AND TECHNIQUES:

 Comparative financial statement
 Ratio analysis
 Balance Sheet
 Line Graphs

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  Charts

3.9 SOME IMPORTANT TERMS:

 Liquidity Ratio
 Solvency Ratio
 Activity Ratio
 Profitability Ratios
 Market Test Ratio

 Liquidity Ratio
The term liquidity refers to the firm’s ability to pay its current liabilities out of its current assets. Liquidity
ratios are used to measure the liquidity position or short term debt paying ability of a firm. These ratios are
highly useful to creditors and commercial banks that provide short term credit. Important liquidity ratios are:

1. Current Ratio:- Current ratio is defined as the ratio of current assets to current liabilities. It shows
the relationship between total current assets and total current liabilities. It is the measure of firm’s
short term solvency. That is, its ability to meet short-term obligations. In sound business a current
ratio of 2:1 is considered as an ideal one.

Current ratio ̳ current assets

current liabilities

2. Liquid ratio or quick ratio:- Liquid ratio is the ratio of liquid assets to current liabilities. It
establishes the relationship between quick Assets and current liabilities. It is a measure of instant
debt paying ability of the business enterprise. It is also called acid test ratio. An acid test ratio of
1:1 is considered to be satisfactory as a firm can easily meet all its current liabilities. Inventory are
considered to be less liquid. It is computed as follows :

Liquid ratio ̳ liquid assets

current liabilities

3. Absolute liquid ratio or cash ratio:- Cash ratio of absolute liquid ratio shows the relationship
between cash and current liabilities. Absolute liquid asset includes cash in hand and cash at bank
and marketable securities are temporary investments. The acceptable norms for this ratio is 0.75:1

Absolute liquid ratio ̳ cash and bank + short term securities ÷ current liabilities

 Solvency Ratio

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 The term solvency means the ability of a firm to meet its long-term obligations. The long-term
creditors of firms are primary interested in knowing firms ability to pay interest on long term
borrowings, repayment of principle amount of maturity etc. These ratios are described as follows:

1. Debt equity ratio :- It shows the relationship between total debt and owned debt. It is the ratio of
the amount invested by the shareholders. This ratio reflects the relative claim of shareholders and
creditors against the assets of the company.

Debt equity ratio ̳ debt

equity

2. Fixed assets to net worth ratio:- It measures the percentage of fixed assets to network. This
ratio helps to analysis the long term solvency of the firm.

Fixed asset to net worth ratio ̳ fixed assets

shareholders fund

3. Proprietary ratio:- Proprietary ratio establishes the relationship between shareholders or

proprietors fund and total assets. This ratio shows how much funds have been contributed by the
shareholders in the total assets of the firm. Proprietary ratio is also known as equity ratio or net-
worth ratio. It is computed as:

Proprietary ratio ̳ shareholders fund

total asset

4. Solvency ratio:- This ratio expresses the relationship between total Assets and total liabilities of a
business. It measures the solvency of the business. This ratio is known as solvency ratio. This ratio
is generally expressed as a proportion. The following formula is used for computing solvency and
ratio.

Solvency ratio ̳ total assets

total debt

5. Fixed asset ratio :- It is the ratio of fixed assets to long-term funds or capital employed .

Fixed assets ratio ̳ Fixed assets (after depreciation)

long term funds

 Activity Ratio
These ratio indicate efficiency in Asset Management. These ratios are also known as efficiency
ratios or performance ratios of assets utilisation ratios. The ratio indicates the cash elasticity of
current assets. This ratio indicates the speed with which the resources are turned over or converted
into cash. These ratios are also known as turnover ratios. It should be noted that turnover ratios are

- 17 -
 always expressed in number of times, i.e., rate of turning over. Important activity or turnover ratios
are discussed as follows:

1. Inventory Turnover Ratio:- Inventory or stock turnover ratio shows the relationship between
cost of goods sold and average inventory on stock. It is also called merchandise turnover ratio.
It is obtained by dividing cost of goods sold by average stock. Stock turnover ratio is computed
by the following formula :
Stock turnover ratio ̳ cost of goods sold
average stock

2. Debtors turnover ratio:- Debtors turnover ratio explain the relationship between net credit
sales and average debtors including bills receivable. This ratio shows how quickly debtors are
realised or converted into cash. It is also known as receivables turnover ratio. The following
formula used for calculating debtors turnover ratio:
Debtors turnover ratio ̳ Net credit sales
average debtors including B/R

3. Creditors turnover ratio:- It shows the relationship between net credit purchase and average
creditors including bills payable. This ratio indicates the number of times the creditors are paid.
It is also called payable turnover ratio, it is computed by the following formula:
Creditors turnover ratio ̳ Net credit purchase
average creditors including B/P

4. Working capital turnover ratio:- Current asset will change with change in sales. This means
working capital is related with States. The relation between sales and working capital is called
working capital turnover ratio. This ratio shows how many times the working capital is turned
over to produce sales. Working capital turnover ratio is computed by the following formula :
Working capital turnover ratio ̳ Net sales
working capital

5. Fixed asset turnover ratio:- For knowing whether fixed asset or effectively utilized or not,
fixed asset turnover ratio is used. Fixed asset turnover ratio establishes the relationship between
net sales and fixed asset. It measures the efficiency with which a firm is utilising it’s fixed
assets in producing sales. It is computed as follows:
Fixed asset turnover ratio ̳ Net sales
net fixed assets

 Profitability Ratio
The term profitability refers to the ability of a firm to earn income. The profitability of a firm can
be easily measured by its profitability ratios. Profitability ratios are always based on
sales.Important general profitability ratios are discussed below:

1. Gross profit ratio:- This is the ratio of gross profit to sales expressed as percentage. It is also
known as gross margin. It is calculated as follows:

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 G/P ratio = gross profit × 100
net sales

2. Operating ratio :- Operating ratio expresses the relationship between operating cost and sales. It
indicates the overall efficiency in operating the business. The formula for computing operating
ratio is as follows:

Operating ratio = cost of goods sold+ operating expense

net sales × 100

3. Operating profit ratio:- Operating profit ratio Explain the relationship between operating profit
and net sales. It is calculated by the following formula:

Operating profit ratio = operating profit

net sales × 100

4. Net profit ratio:- Net profit ratio is the ratio of net profit earned by a business and its net sales. It
measures overall profitability. It is calculated as follows:

Net profit ratio = net profit

net sales × 100

5. Return on investment (ROI):- ROI measures the overall profitability. It establishes the
relationship between profit or return and investment. It is also called the accounting rate of return.
It is computed as follows:

ROI = net profit before interest and tax

capital employed × 100

6. Return on shareholder’s fund :- This is the ratio of net profit to shareholders fund or net-worth.
It measures the profitability from the shareholders point of view. It is calculated as follows:

Return on shareholder’s fund = net profit after interest and tax

capital employed × 100

3.10 REFERENCES:
 www.wikipedia.org
 www.slideshare.com
 www.hul.co.in
 www.ijrar.org

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 CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION

- 20 -
Comparative financial statement

A Comparative balance sheet analysis is a simple way of comparing the data on two or more balance
sheet that have different dates. We can compare several balance sheets from a bank, each of which has
the same data but on different months or different years. For example, we can analyse the month-end
totals for each month in a year or year-end totals over several years to chart market trends and how this
affects your company’s growth. A comparative balance sheet analysis is a method of analysing a
company’s balance sheet over time to identify changes and trends. Public companies are required to
include the information needed for a comparative balance sheet analysis in their quarterly and annual
reports to the SEC, though it can be useful to pull together more data on its’ own for a longer-term
analysis.

Ratio Analysis

Ratio analysis is a widely used Technique of analysing financial statements. An analysis of financial
statements with the help of ratios is termed as ratio analysis. It is a systematic use of accounting ratios to
interpret the financial statements for studying the financial position and performance of an enterprise.
Ratio analysis was perhaps the financial tools developed to analysis and interpret the financial statement
and is still used widely for this purpose . Ratio analysis is defined as the systematic use of accounting
ratios on order to weigh and evaluate the operating performance of the firm. It is the process of
determining and interpreting various ratios for helping in certain decisions.

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4.1 Liquidity Ratio

4.1.1 Current Ratio (ideal ratio =2:1)

Current Ratio=current asset /current liability

Table4.1: Showing current ratio

Year Current asset Current liability Current ratio

(in crores) (in crores)
2021-22 12321 9317 1.32:1
2020-21 11914 8667 1.38:1
2019-20 11660 8887 1.31:1
2018-19 10218 7714 1.33:1
2017-18 10242.3 9747.4 1.10:1
Source: (Secondary Data)

Chart4.1: Chart showing changes in current ratio

Current ratio
1.6

1.4

1.2

0.8
Current ratio
0.6

0.4

0.2

0
2021-22 2020-21 2019-20 2018-19 2017-18

The ideal ratio is 2:1. All the five ratios are below this range. The highest is in the year of
2020-21. The current year ratio is 1.32:1. The firm is in an average condition to meet the
short-term debts.

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 4.1.2 Quick Ratio

Quick Ratio=Quick assets/Current liabilities

Table 4.2: Table showing Quick Ratio

Year Quick Assets Current Assets Quick Ratio

(incrores) (incrores)
2021-22 9554 9317 1.03:1
2020-21 9340 8667 1.08:1
2019-20 9147 8887 1.03:1
2018-19 7631 7741 0.99:1
2017-18 7490.14 9747.39 0.77:1
Source: (Secondary Data)

Graph4.2: Graph showing Quick Ratio

Quick Ratio
1.2

0.8

0.6
Quick Ratio

0.4

0.2

0
2021-22 2020-21 2019-20 2018-19 2017-18
222222
222220
2218

The ideal ratio is 1:1. In all years almost the ratio is satisfactory. The lowest is in the year of
2017-18. The highest is the year of 2020-21. For the current year is 1.03:1, which is just
above the ideal ratio.

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4.2 Solvency Ratios
4.2.1 Total Assets to Debt Ratio (ideal ratio = 1:1)

Total Assets to Debt Ratio = Total Assets/Total Debt

Table4.3: Table showing Total Assets to Debt Ratio

Year Total Assets Total Debt Total Assets to

(incrores) (incrores) Debt Ratio
2021-22 20153 11907 1.69:1
2020-21 18629 10774 1.73:1
2019-20 17862 10561 1.69:1
2018-19 15706 8940 1.76:1
2017-18 15164.85 11168.1 1.36:1
Source: (Secondary Report)

Graph 4.3: Graph showing Total Assets to Debt Ratio

Total Assets to DebtRatio

1.8
1.6
1.4
1.2
1
Total Assets to DebtRatio
0.8
0.6
0.4
0.2
0
2021-22 2020-21 2019-20 2018-19 2017-18

The standard ratio is not fixed. The ratio indicates the degree of solvency of a business. The
current year ratio is 1.69:1. The company is solvent because assets are sufficiently more than
liabilities. Therefore, the company is financially sound.

- 24 -
4.2.2 Debt Equity Ratio (ideal ratio =2:1)

Debt Equity Ratio = Total Debt/Equity

Table 4.4: Table showing Debt Equity Ratio

Year Total Equity Debt Equity

Debt(in (in crores) Ratio
crores)
2021-22 11907 8246 1.45:1
2020-21 10774 7885 1.37:1
2019-20 10561 7301 1.40:1
2018-19 8940 6766 1.32:1
2017-18 11168.1 3996.8 2.80:1
Source: (Secondary Report)

Graph 4.4: Graph showing Debt Equity Ratio

Debt-Equity Ratio

2.5

1.5 Debt-Equity Ratio

0.5

0
2021-22 2020-21 2019-20 2018-19 2017-18

The ratio for the current year is 1.45:1. This indicates that for every 1rupee of equity ,there is
a debt worth 1.45 rupees. The ratio is above the standard of 1:1.

- 25 -
4.2.3. Proprietary Ratio (ideal ratio = 50%)

Proprietary Ratio = Shareholder’s Fund / Total Asset

Table 4.5: Table showing Proprietary Ratio

Year Shareholder’s Total Proprietary Ratio

Fund(in crores) Asset(in %
crores)
2021-22 8246 20153 40.9
2020-21 7885 18629 42.3
2019-20 7301 17862 40.9
2018-19 6766 15706 43.1
2017-18 3971.71 15164.85 26.2
Source: (Secondary Report)

Graph4.5: Graph showing Proprietary Ratio

Proprietary Ratio
50
45
40
35
30
25
Proprietary Ratio
20
15
10
5
0
2021-22 2020-21 2019-20 2018-19 2017-18

The ideal ratio is 50% . All the ratios are around 40%, except 2017-18. 26.19% is very
low compared to ideal ratio. The current year ratio is 40.9% which is satisfactory.

- 26 -
4.3. Profitability Ratios

Gross Profit Ratio

Gross Profit Ratio = Gross Profit/ NetSales

Table 4.6: Table showing Gross Profit Ratio

Year Gross Profit(in Net Sales (in Gross Profit Ratio

crores) crores) %
2021-22 9173 39783 23.06
2020-21 8604 39310 21.89
2019-20 7304 36238 20.16
2018-19 6479 35759 18.12
2017-18 5946.56 33193.72 17.92
Source:( Secondary Report)

Graph 4.6:Graph showing Gross Profit Ratio

Gross Profit Ratio

25

20

15
Gross Profit Ratio
10

0
2021-22 2020-21 2019-20 2018-19 2017-18

The ideal ratio is 25%. The Gross Profit showed an increasing rate which is a positive
sign. The ratio for the current year is 23.06%, which is the is the highest among the five
years.

- 27 -
 4.3.2. Net Profit Ratio

Net Profit Ratio=(Net Profit/Sales)%

Table 4.7:Table showing Net Profit Ratio

Year Net Profit Sales Net Profit Ratio

(incrores) (incrores) %
2021-22 6667 39783 16.76
2020-21 6060 39310 15.42
2019-20 5227 36238 14.42
2018-19 4490 35759 12.56
2017-18 4082.42 33193.72 12.30
Source:(Secondary Report)

Graph 4.7 .Graph showing Net Profit Ratio

Net ProfitRatio
18
16

14

12

10

8 Net Profit Ratio

6
4

0
2021-22 2020-21 2019-20 2018-19 2017-18

Net Profit Ratio also shows an increasing trend. It is the highest in the current year. An
increasing ratio is satisfactory .The trend also is satisfactory.

- 28 -
4.4 Activity Ratios
4.4.1 Stock Turnover Ratio (ideal=8times)

Stock turnover ratio = Cost of goods sold /Average stock

Table 4.8: Table showing Stock Turnover Ratio

Year Cost of goods sold Average stock (in Stock turnover ratio
(in crores) crores)

2021-22 39783 2670.5 14.90

2020-21 39310 2543.5 15.46
2019-20 31013 2527 12.27
2018-19 29280 2633.5 11.2
2017-18 27247.16 2800.5 9.73
Source:(Secondary Report)

4.8 : Graph Showing Stock Turnover Ratio.

Stock Turnover Ratio

20

10
Stock Turnover Ratio
0
2021-22 Stock Turnover Ratio
2020-21
2019-20
2018-19
2017-18

The ideal ratio of 8times is considered satisfactory. Higher turnover ratio indicates that inventory is sold
fast. Every year has a turnover ratio above ideal ratio. This shows the increase in sales.

- 29 -
4.4.2 Fixed Assets Turnover Ratio

Fixed Assets Turnover Ratio = Net Sales/Fixed Assets

Table 4.9: Table showing Fixed Assets Turnover Ratio

Year Net Sales Fixed Assets Fixed Assets

(incrores) (in crores) Turnover Ratio
2021-22 39783 6076 6.55
2020-21 39310 5121 7.68
2019-20 36238 4989 7.26
2018-19 35759 4648 7.69
2017-18 33193.72 3646 9.1
Source: (Secondary Data)

Graph 4.9:Graph showing Fixed Assets Turnover Ratio

Fixed Assets TurnoverRatio

10
9
8
7
6
5 Fixed Assets Turnover Ratio
4
3
2
1
0
2021-20 2020-21 2019-20 2018-19 2017-18

The ideal ratio is 7 or 8 times . Fixed Assets Turnover Ratio is higher than the standard. This
indicates a better utilization of fixed assets in generating sales.

- 30 -
 4.4.3. Working Capital Turnover Ratio

(ideal ratio = 7 or 8 times)

Working Capital Turnover Ratio = Net Sales/ Working Capital

Table 4.10: Table showing Working Capital Turnover Ratio

Year Net Sales (in crores) Working Capital (in Working Capital
crores) Turnover Ratio
2021-22 39783 3004 13.24
2020-21 39310 3247 12.11
2019-20 36238 2773 13.07
2018-19 35759 2458 14.55
2017-18 33193.72 2531.22 13.11
Source: (Secondary Data)

Graph 4.10:Graph showing Working Capital Turnover Ratio

Working Capital TurnoverRatio

16

14

12

10

8 Working Capital Turnover Ratio

0
2021-22 2020-21 2019-20 2018-19 2017-18

The ideal ratio is 7 or 8 times. Higher the ratio the better is the utilization of working capital. This is
showed out. The ratio for the current year is 13.24 times, which is above the ideal ratio.

- 31 -
 Comparative Balance Sheet:-
Table 4.11: Table showing comparative balance sheet of the financial year 2017-18 and 2018-19

Particulars 2018-2019(in 2017-18 (in Increase or Increase or

crores) crores) Decrease decrease%
(in cr)
Equities and
liabilities
Equity 6766 6593 173 2.63
Longterm 73 20 53 265
Financial
liabilities
Provisions 906 916 (10) 1.1
Other non-current 639 491 148 30.14
liabilities

Shortterm 6658 6120 538 8.8

financial
liabilities
Other current 664 654 10 1.53
liabilities
TOTAL 15706 14794 912
Assets
Non-current 5488 4449 1039 23.35
assets
Inventories 2541 2726 (185) 6.8
Cash and bank 1828 3009 (1181) 39.25
balances
Other current 5849 4610 1239 26.88
assets
TOTAL 15706 14794 912

In the financial year of 2019 there was an increase of 23.35% increase in the non-current assets of the
company. The company also showed a decrease of almost 39.25% in cash and bank balances, which
questions the event that led to this decrease. The current assets had an increase of 26.88% which included
trade recievebles also. Overall it showed an increase of 912cr in assets.

- 32 -
Table 4.12: Table showing comparative balance for the financial year 2018-19 and 2019-20

Particulars 2019-20 (in 2018-19(in Increase or Increase or

crores) crores) Decrease (cr) Decrease %
Equities and
Liabilities
Equity 7301 6766 535 7.91
Long term 119 73 46 63.01
Financial
liabilities
Provisions 1488 906 582 64.24
Other non- 755 639 116 18.15
current
liabilities
Short term 7384 6608 776 11.74
financial liabilities
(cont)
Other current 815 664 151 22.74
liabilities
TOTAL 17862 15706 2156
Assets
Non-current 6202 5534 668 12.1
assets
Inventories 2513 2541 (28) 1.1
Cash and bank 3485 1828 1657 90.65
balances
Other current 5662 5803 (141) 2.43
assets
TOTAL 17862 15706 2156

During the financial year 2019-20 the Non-current assets increased by 12.1%.Cash and bank
balances also increased by 90.65% which is a positive sign. The liabilities also increased by
18.13%.

- 33 -
Table 4.13:Table showing the comparative balance sheet of the financial year 2019-20 and
2020-21

Particulars 2020-21 (in 2019-20(in Increase or Increase or

crores) crores) decrease decrease %
Equities and
liabilities
Equities 7885 7301 584 7.99
Long -term 177 119 58 48.74
Financial
assets
Provisions 1605 1488 117 7.86
Other 818 755 63 8.34
non-current
liabilities
Short term 7591 7384 207 2.8
financial
liabilities
Other current 553 815 (262) 32.15
liabilities
TOTAL 18629 17862 767
Assets
Non-current 6715 6202 513 8.27
Assets
Inventories 2574 2513 61 2.43
Cash and bank 3757 3485 272 7.81
balances
Other current 5583 5662 (79) 1.4
assets
TOTAL 18629 17862 767

In 2020 -21 the non-current assets increased by 8.27% which amounts to 513 crores. There
was a total increase of almost 767 crores in total assets. The Long term financial assets
increased by 48.74%. There was a total increase of 1.73% in the total liabilities.

- 34 -
Table 4.14: Table showing comparative balancesheet of the financial year 2021- 22 and
2020-21

Particulars 2021-22 (in 2020 - 21(in Increase or Increase or

crores) crores) decrease (cr) decrease %
Equities and
liabilities
Equities 8246 7885 361 4.58
Long term 939 394 545 138.33
Financial
liabilities
Provisions 1649 1605 44 2.74
Other non- 424 601 (177) 29.45
current
liabilities
Short term 8467 7797 670 8.59
current
liabilities
Other current 428 347 81 23.34
liabilities
TOTAL 20153 18629 1524
Assets
Non-current 7832 6715 1117 16.63
assets
Inventories 2767 2574 193 7.50
Cash and bank 5113 3757 1356 36.10
balance
Other current 4441 3767 674 17.89
assets
TOTAL 20153 18629 1524

In 2021-22 non-current assets increased by 16.63%. Non-current liabilities showed a steady

decrease of almost 29.45%. This shows an increased efficiency of the company in the
present year. Cash and bank balances increased by 36.10%.

REFERENCE:

 www.equitymaster.com
 www.hul.in
 www.capitalmarket.com
 www.moneycontrol.com
 www.ijrar.org
 www.bartleby.com

- 35 -
 CHAPTER – 5

FINDINGS AND CONCLUSION

- 36 -
 CHAPTER 5
FINDINGS AND CONCLUSION

5.1 FINDINGS:

 The company showed a gradual increase in its current ratio. Current ratio of the last year is
satisfactory. It is less than the ideal ratio 2:1. Compared to the trend of the last 5 years the
present year shows a decrease which stands out.

 The asset to debt ratio is almost consistent for the past 4 years, which adds a positive note to the
financial stability of the company. It was the lowest in 2017-18

 The debt equity ratio was above the ideal ratio 2:1 in the financial year of 2017-18. The ratio for
the current year is satisfactory.

 The company establishes its increasing growth in each year. This is clear as we check the net
profit ratio of the last 5 years. It shows an increasing trend over years

 The stock turnover ratio also shows an increasing trend for the past four years but for 2021-22 it
was low compared to 2020-21.

 The comparative statement of 2018-19 and 2017-18 show that there was an increase of 739cr in
liabilities and at the same time assets increased by 921cr. This leads to a net positive increase of
192cr.

 The comparative statement of 2019-20 and 2018 -19 show that there was an increase of 1621cr
in liabilities and the assets showed an increase of 2156cr. Hence shows a net increase of 535cr.

 The comparative statement of 2020-21 and 2019-20 show that there was an increase of 183cr
in liabilities. The current liabilities showed a decrease of 262cr. The assets increased by 767cr.

 The comparative statement of 2021-22 and 2020 -21 show that there was an increase of 1163cr
in liabilities. The non-current liabilities showed a decrease of 177cr. The assets increased by
1524cr.

- 37 -
5.2 SUGGESTIONS:

 By analyzing the liquidity ratios we can find that the ratios are not meeting the standard. So the
company has to increase its ratio to meet the standard and to meet its short term obligations.

 Liquid ratio of the firm is not better. So the company should maintain proper liquid assets and
should also invest more funds in liquid assets to ensure liquidity in banking operations.

 The profit of the company is generally showing an increasing trend except in the final year 2020,
when the pandemic errors. So the company can maintain and continue their status quo.

 The company should maintain the long term financial position.

5.3 CONCLUSION:

The study mainly concentrates on the analysis of fundamental analysis and soundness of the company. It
helps us to understand the total financial position of the company. The transperancy of an MNC is truly
portrayed. Comparison of the financial statement helped us to know the impact of various internal and
external factors on the firm. There were instincts that held with and against the company.

The company’s execution of ideas was in its right path which is clear cut in its financial positions. From
the study of financial performance it can be concluded that Hindustan Unilever has a satisfactory position
in terms of profitability. The company’s foresighted future plans, on successful execution can bring
farther growth and results which is expected

- 38 -
 BIBLIOGRAPHY

BOOKS:
 Vinod - Accounting for Management

 S.N Maheshwari and S.K Maheshwari – Financial Accounting

 H.V Jhamb – Fundamentals of Management Accounting

 Gregory Horine – Project Management

PUBLISHED ANNUAL REPORTS

Annual report of

• Hindustan Unilever Limited

WEBSITES

 www. hul.co.in
 www.fmcg.com
 www.google.com
 www.ijcrt.org
 www.scribd.com
 www.bartleby.com
 www.wikipedia.com
 www.investmentpedia.com
 www.slideshare.com
 www.edubirdie.com
 www.researchgate.com
 www.equitymaster.com
 www.hul.in
 www.capitalmarket.com
 www.moneycontrol.com

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