cash flow statement analysis hul final

8/12/2019 Cash flow statement analysis Hul Final

1/10

BY:

Apoorv Kalra Bhaumik Ghetia

Ankit Arora Gursimran Singh

Bharat Mendiratta Garima Sindhwani


2/10

About The Company

Hindustan Unilever Limited(HUL) is anIndian consumer goods company based in Mumbai,Maharashtra.

HUL's products include foods, beverages, cleaningagents and personal care products.

Owned by Anglo-Dutch company Unilever whichowns 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 of3,796.67.


3/10

CASH FLOW STATEMENT OF HUL

FOR THE YEAR 2013-14

ALL FIGURES IN CRORES UNLESS STATED


4/10

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 DepositsALL FIGURES IN CRORES UNLESS STATED


5/10

Financing of InvestmentsPurchase of Fixed assets 530.81Investment 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 210.38Dividend received from subsidiaries 130.63

12,209.67

Rest of the Investments i.e. 700cr (approx) were financed cash from operatingactivities , financing activities and drawing down cash and cash equivalents.



6/10

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 previousfiscal year which will mature in the present fiscal year.

Investments in bank deposits.



7/10

Is the negative cash flow from investing

activity straining the companys overallcash flow?

(Investing) < Operating + (Financing)

Withdrawal from the cash balance not required

As a result, Cash (2013-14) > Cash (2012-13)



8/10

Does the company enjoy financial

flexibility?

Yes!

Huge cash balance

High reservesand surplus

Raise funds throughloans

D/E Ratio: 0.34

Can sellcurrent

investments



9/10

Prospects of shareholders and

creditors?Trade payable ->Cash flow from

operation +Provision

EPS: 17.56.Dividend paid:

11.43.

Same percentagecan be maintainedlooking at the EPS

for FY 2013-14

Provided, noinvestment plans

elsewhere.



10/10

THANK YOU

cash flow statement analysis hul final

Documents