Under the Guidance of ASST PROF.SHILPA JOSHI
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Transcript of Under the Guidance of ASST PROF.SHILPA JOSHI
1
“A STUDY ON WORKING CAPITAL”
CASE STUDY ON HINDUSTAN UNILEVER LIMITED.
Submitted in the partial fulfillment of the requirement of bachelor of business
administration Degree course of University of Bangalore
Submitted By
MUKUL R (Register No. 14VFC26073)
Under the Guidance of
ASST PROF.SHILPA JOSHI
DEPARTMENT OF MANAGEMENT STUDIES
NEW HORIZON COLLEGE OF ENGINEERING,
OUTER RING ROAD, MARATHALLI
BANGALORE
2017-2018
HOD’s CERTIFICATE
This is to certify that MUKUL.R is a bonafide student of Bachelors of Business
Management. The project work entitled “A STUDY ON WORKING
CAPITAL” AT “HINDUSTAN UNILEVER LIMITED” is a bonafide
work carried out by her in partial fulfillment of the requirements for the award of
degree in Business Administration of Bangalore University during the year 2017-
2018. It is certified that all corrections/suggestions have been incorporated in the
project report and a copy is deposited in the department library. This project work
has been approved as it satisfies the academic requirement for the award of
Bachelors of Business Management Degree.
DATE: Mrs. Sowmya J Lokesh
(HOD)
PLACE: Bengaluru.
GUIDE CERTIFICATE
This is to certify that the project report entitled “A STUDY ON
WORKING CAPITAL” AT “HINDUSTAN UNILEVER LIMITED”
submitted by PRIYANKA PRAKASH KUMAR to Bangalore University for the
award of degree in Business Management is an outcome of genuine research work
carried under my guidance and it has not been submitted for award of any other
degree, diploma or prize.
DATE Mrs. SHILPA JOSHI
PLACE: Bengaluru.
PRINCIPAL’S CERTIFICATE
This is to certify that MUKUL.R is a bonfire student of this college. The project
work entitled “A STUDY ON WORKING CAPITAL” AT “HINDUSTAN
UNILEVER LIMITED” is a bonafide work carried out by her, in partial
fulfillment of the requirements for the award of degree in Business Management of
Bangalore University during the year.
2017-2018
DATE: DR.BODISATAVAN.
PLACE: Bangalore
ACKNOWLEDGEMENT
I wish to place on record my deep sense of gratitude to all those who made this
project successful and encouraged and guided me. I express my sincere thanks to
the institute of new horizon college.
I would like to thank Dr.R. BODHISATVAN, principal, New Horizon College,
for giving me the opportunity to prove my calibre by submitting this project report.
I thank Mrs.SHILPA JOSHI ,internal guide, new horizon college, for her
valuable guidance and help throughout this project.
I extend my thanks to MRS. YUGANDHAR REDDY company guide for giving
the time and information needed for making this project successful.
Finally, I would like to thank the authors whose ideas and matters have been used
again and helped in completing this project in time. Last but not the least, a sincere
thanks to my parents and friends with whose support I got an insight.
MUKUL.R (14VFC26073)
6
STUDENT DECLARATION
I MUKUL.R hereby declare that this project entitled “A STUDY ON
WORKING CAPITAL ” AT “HINDUSTAN UNILEVER
LIMITED” was prepared by me during the year 2017-2018 and was
submitted in partial fulfillment of the requirement for the award of degree
in Business Administration of Bangalore University.
I also declare that this project report is original and genuine and has not been
submitted to any other University for the award of any degree, diploma or
other similar titles or purpose.
7
TABLE OF CONTENT
Chapter Title Page
no.
1 Introduction 8
2 Company Profile 23
3 Literature Review 35
4 Research Design 45
5 Data Analysis and Interpretation 49
6 Suggestions and Conclusion 66
7 Bibliography 71
8 Annexure 74
9
Concept of Working Capital Management
There are two concepts of working capital viz. quantitative and qualitative. Some people also
define the two concepts as gross concept and net concept. According to quantitative concept,
the amount of working capital refers to ‘total of current assets’. What we call current assets?
Smith1 called, ‘circulating capital’. Current assets are considered to be gross working capital
in this concept.
The qualitative concept gives an idea regarding source of financing capital. According to
qualitative concept the amount of working capital refers to “excess of current assets over
current liabilities.” L.J. Guttmann defined working capital as “the portion of a firm’s current
assets which are financed from long–term funds.”
The excess of current assets over current liabilities is termed as ‘Net working capital’. In this
concept “Net working capital” represents the amount of current assets which would remain if
all current liabilities were paid. Both the concepts of working capital have their own points of
importance. “If the objectives is to measure the size and extent to which current assets are being
used, ‘Gross concept’ is useful; whereas in evaluating the liquidity position of an undertaking
‘Net concept’ becomes pertinent and preferable.
It is necessary to understand the meaning of current assets and current liabilities for learning
the meaning of working capital, which is explained be
Current assets – It is rightly observed that “Current assets have a short life span. These type
of assets are engaged in current operation of a business and normally used for short– term
operations of the firm during an accounting period i.e. within twelve months. The two important
characteristics of such assets are, (i) short life span, and (ii) swift transformation into other form
of assets. Cash balance may be held idle for a week or two, account receivable may have a life
span of 30 to 60 days, and inventories may be held for 30 to 100 days.”
Fitzgerald defined current assets as, “cash and other assets which are expected to be converted
in to cash in the ordinary course of business within one year or within such longer period as
constitutes the normal operating cycle of a business.”
10
Current liabilities – The firm creates a Current Liability towards creditors (sellers) from
whom it has purchased raw materials on credit. This liability is also known as accounts payable
and shown in the balance sheet till the payment has been made to the creditors.
The claims or obligations which are normally expected to mature for payment within an
accounting cycle are known as current liabilities. These can be defined as “those liabilities
where liquidation is reasonably expected to require the use of existing resources properly
classifiable as current assets, or the creation of other current assets, or the creation of other
current liabilities.”
Circulating capital – working capital is also known as ‘circulating capital or current
capital.’ “The use of the term circulating capital instead of working capital indicates that its
flow is circular in nature.”
Structure of Working Capital
The different elements or components of current assets and current liabilities constitute the
structure of working capital which can be illustrated in the shape of a chart as follows:
11
Structure of Current Assets and Current Liabilities
Current Liabilities Current Assets
Bank Overdraft Cash and Bank Balance
Creditors Inventories: Raw-Materials
Work-in-progress
Finished Goods
Outstanding Expenses Spare Parts
Bills Payable Accounts Receivables
Short-term Loans Bills Receivables
Proposed Dividends Accrued Income
Provision for Taxation, etc. Prepaid Expenses
Short-term Investments
Circulation of Working Capital
At one given time both the current assets and current liabilities exist in the business. The
current assets and current liabilities are flowing round in a business like an electric current.
However, “The working capital plays the same role in the business as the role of heart in
human body. Working capital funds are generated and these funds are circulated in the
business. As and when this circulation stops, the business becomes lifeless. It is because of
this reason that he working capital is known as the circulating capital as it circulates in the
business just like blood in the human body.”
12
Figure No.1 depicting ‘Working Capital Cycle’ makes it clear that the amount of cash is
obtained mainly from issue of shares, borrowing and operations. Cash funds are used to
purchase fixed assets, raw materials and used to pay to creditors. The raw materials are
processed; wages and overhead expenses are paid which in result produce finished goods for
sales overhead expenses are paid which in result produce finished goods for sale.
The sale of goods may be for cash or credit. In the former case, cash is directly received while
in later case cash is collected from debtors. Funds are also generated from operation and sale
of fixed assets. A portion of profit is used for payment of interest, tax and dividends while
remaining is retained in the business. This cycle continues throughout the life of the business
firm.
13
Classification of Working Capital
The quantitative concept of Working Capital is known as gross working capital while that
under qualitative concept is known as net working capital.
Working capital can be classified in various ways. The important classifications are as given
below:
Conceptual classification – There are two concept of working capital viz., quantitative and
qualitative. The quantitative concept takes into account as the current assets while the
qualitative concept takes into account the excess of current assets over current liabilities.
Deficit of working capital exists where the amount of current liabilities exceeds the amount of
current assets. The above can be summarized as follows:
1) Gross Working Capital = Total Current Assets
2) Net Working Capital = Excess of Current Assets over Current Liabilities
3) Working Capital Deficit = Excess of Current Liabilities over Current Assets.
Classification on the basis of financial reports – The information of working capital can be
collected from Balance Sheet or Profit and Loss Account; as such the working capital may be
classified as follows:
Cash Working Capital – This is calculated from the information contained in profit and loss
account. This concept of working capital has assumed a great significance in recent years as it
shows the adequacy of cash flow in business. It is based on ‘Operating Cycle Concept’s which
is explained later in this chapter
Balance Sheet Working Capital – The data for Balance Sheet Working Capital is collected
from the balance sheet. On this basis the Working Capital can also be divided in three more
types, viz., gross Working Capital, net Working Capital and Working Capital deficit.
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Classification on the Basis of Variability – Gross Working Capital can be divided in two
categories viz. permanent or fixed working capital, and (ii) Temporary, Seasonal or variable
working capital.
Such type of classification is very important for hedging decisions.
Temporary Working Capital – Temporary Working Capital is also called as fluctuating or
seasonal working capital. This represents additional investment needed during prosperity and
favourable seasons. It increases with the growth of the business. ”Temporary working capital
is the additional assets required to meet the variations in sales above the permanent level.”8
This can be calculated as follows:
Temporary Working Capital = Total Current Assets – permanent Current Assets
Permanent Working Capital – It is a part of total current assets which is not changed due to
variation in sales. There is always a minimum level of cash, inventories, and accounts
receivables which is always maintained in the business even if sales are reduced to a minimum.
Amount of such investment is called as permanent working capital. “Permanent Working
Capital is the amount of working capital that persists over time regardless of fluctuations in
sales.”9 This is also called as regular working capital.
Importance of Working Capital Management
For smooth running an enterprise, adequate amount of working capital is very essential.
Efficiency in this area can help, to utilize fixed assets gainfully, to assure the firm’s long-term
success and to achieve the overall goal of maximization of the shareholders, fund. Shortage or
bad management of cash may result in loss of cash discount and loss of reputation due to non-
payment of obligation on due dates. Insufficient inventories may be the main cause of
production held up and it may compel the enterprises to purchase raw materials at unfavourable
rates.
15
Like-wise facility of credit sale is also very essential for sales promotions. It is rightly observed
that “many a times business failure takes place due to lack of working capital.”10 Adequate
working capital provides a cushion for bad days, as a concern can pass its period of depression
without much difficulty.
O’ Donnel et al. correctly explained the significance of adequate working capital and
mentioned that “to avoid interruption in the production schedule and maintain sales, a concern
requires funds to finance inventories and receivables.” The adequacy of cash and current assets
together with their efficient handling virtually determines the survival or demise of a
concern.11 an enterprise should maintain adequate working capital for its smooth functioning.
Both, excessive working capital and inadequate working capital will impair the profitability
and general health of a concern.
The danger of excessive working capital are as follows:
1) Heavy investment in fixed assets – A concern may invest heavily in its fixed assets which is
not justified by actual sales. This may create situation of over capitalization.
2) Reckless purchase of materials- Inventory is purchased recklessly which results in dormant
slow moving and obsolete inventory. At the same time it may increase the cost due to
mishandling, waste, theft, etc.
3) Speculative tendencies - Speculative tendencies may increase and if profit is increased
dividend distribution will also increase. This will hamper the image of a concern in future when
speculative loss may start.
4) Liberal credit - Due to liberal credit, size of accounts receivables will also increase. Liberal
credit facility can increase bad debts and wrong practices will start, regarding delay in
payments
5) Carelessness - Excessive working capital will lead to carelessness about costs which will
adversely affect the profitability.
6) Paucity of working capital is also bad and has the following dangers:
1) Implementation of operating plans becomes difficult and a concern may not achieve its profit
target.
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2) It is difficult to pay dividend due to lack of funds.
3) Bargaining capacity is reduced in credit purchases and cash discount could not be availed.
4) An enterprise looses its reputation when it becomes difficult even to meet day-to- day
commitments.
5) Operating inefficiencies may creep in when a concern cannot meet it financial promises.
6) Stagnates growth as the funds are not available for new projects.
7) A concern will have to borrow funds at an exorbitant rate of interest in case of need.
8) Sometimes, a concern may be bound to sale its product at a very reduced rates to collect funds
which may harm its image.
Meaning of Working Capital Management
The management of current assets, current liabilities and inter-relationship between them is
termed as working capital management. “Working capital management is concerned with
problems that arise in attempting to manage the current assets, the current liabilities and the
inter-relationship that exist between them.”12 In practice, “There is usually a distinction made
between the investment decisions concerning current assets and the financing of working
capital.”
From the above, the following two aspects of working capital management emerges:
To determine the magnitude of current assets or “level of working capital” and
To determine the mode of financing or “hedging decisions.”
Significance of Working Capital Management
Funds are needed in every business for carrying on day-to-day operations. Working capital
funds are regarded as the life blood of a business firm. A firm can exist and survive without
making profit but cannot survive without working capital funds. If a firm is not earning profit
it may be termed as ‘sick’, but, not having working capital may cause its bankruptcy working
capital in order to survive. The alternatives are not pleasant. Bankruptcy is one alternative.
17
Being acquired on unfavourable term as another. Thus, each firm must decide how to balance
the amount of working capital it holds, against the risk of failure.”
Working capital has acquired a great significance and sound position in the recent past for the
twin objects of profitability and liquidity. In period of rising capital costs and scare funds, the
working capital is one of the most important
It consumes a great deal of time to increase profitability as well as to maintain proper liquidity
at minimum risk. There are many aspects of working capital management which make it an
important function of the finance manager. In fact we need to know when to look for working
capital funds, how to use them and how measure, plan and control them.
A study of working capital management is very important foe internal and external experts.
Sales expansion, dividend declaration, plants expansion, new product line, increase in salaries
and wages, rising price level, etc., put added strain on working capital maintenance. Failure of
any enterprise is undoubtedly due to poor management and absence of management skill.
Importance of working capital management stems from two reasons, viz., (i) A substantial
portion of total investment is invested in current assets, and (ii) level of current assets and
current liabilities will change quickly with the variation in sales. Though fixed assets
investment and long-term borrowing will also response to the changes in sales, but its response
will be weak.
Difference between the Working Capital Management and the Fixed Assets Management
In fact management of working capital is similar to that of fixed assets management in the
sense that in both cases a firm analyses their effects on its profitability and risk. However, fixed
assets management and working capital management differ in three important ways. Firstly, in
managing fixed assets time is very important. Consequently, discounting and compounding
aspects of time element play a significant role in capital budgeting and a minor one in the
18
working capital management. Secondly, large holdings of current assets specially cash,
strengthen a firm’s liquidity position (and reduce risks), but they also reduce overall
profitability. Thirdly, the level of fixed as well as current assets depends upon the expected
sales, but it is only current assets, which can be adjusted with sales fluctuations in the short-
run.
Theory of Working Capital Management
The interaction between current assets and current liabilities is, therefore, the main theme of
the theory of working capital management. Working capital management is concerned with the
problem that arises in attempting to manage the current assets, the current liabilities and the
inter-relationship that exist between them. The goal of working capital management is to
manage a firm’s current assets and current liabilities in such a way that a satisfactory level of
working capital is maintained. Factors Influencing Working Capital Requirement
Numerous factors can influence the size and need of working capital in a concern. So no set
rule or formula can be framed. It is rightly observed that, “There is no precise way to determine
the exact amount of gross or net working capital for every enterprise. The data and problem of
each company should be analyzed to determine the amount of working capital.
Briefly, the optimum level of current assets depends upon following
determinants.
1) Nature of business--Trading and industrial concerns require more funds for working capital.
Concerns engaged in public utility services need less working capital. For example, if a concern
is engaged in electric supply, it will need less current assets, firstly due to cash nature of the
transactions and secondly due to sale of services. However, it will invest more in fixed assets.
2) In addition to it, the investment varies concern to concern, depending upon the size of business,
the nature of the product, and the production technique.
19
3) Conditions of supply-- If the supply of inventory is prompt and adequate, less funds will be
needed. But, if the supply is seasonal or unpredictable, more funds will be invested in
inventory. Investment in working capital will fluctuate in case of seasonal nature of supply of
raw materials, spare parts and stores.
4) Production policy-- In case of seasonal fluctuations in sales, production will fluctuate
accordingly and ultimately requirement of working capital will also fluctuate. However, sales
department may follow a policy of off-season discount, so that sales and production can be
distributed smoothly throughout the year and sharp, variations in working capital requirement
are avoided.
5) Seasonal Operations-- It is not always possible to shift the burden of production and sale to
slack period. For example, in case of sugar mill more working capital will be needed at the
time of crop and manufacturing.
6) Credit Availability-- If credit facility is available from banks and suppliers on favourable
terms and conditions, less working capital will be needed. If such facilities are not available
more working capital will be needed to avoid risk.
Credit policy of enterprises-- In some enterprises most of the sale is at cash and even it is
received in advance while, in other sales is at credit and payments are received only after a
month or two. In former case less working capital is needed than the later. The credit terms
depend largely on norms of industry but enterprise some flexibility and discretion. In order to
ensure that unnecessary funds are not tied up in book debts, the enterprise should follow a
rationalized credit policy based on the credit standing of the customers and other relevant
factors.
1. Growth and expansion-- The need of working capital is increasing with the growth and
expansion of an enterprise. It is difficult to precisely determine the relationship between
volume of sales and the working capital needs. The critical fact, however, is that the need for
increased working capital funds does not follow growth in business activities but precedes it.
It is clear that advance planning is essential for a growing concern.
20
2. Price level change─ With the increase in price level more and more working capital will be
needed for the same magnitude of current assets. The effect of rising prices will be different
for different enterprises.
3. Circulation of working capital─ Less working capital will be needed with the increase in
circulation of working capital and vice-versa. Circulation means time required to complete one
cycle i.e. from cash to material, from material to work-in-progress, form work-in-progress to
finished goods, from finished goods to accounts receivable and from accounts receivable to
cash.
4. Volume of sale-- This is directly indicated with working capital requirement, with the increase
in sales more working capital is needed for finished goods and debtors, its vice versa is also
true.
5. Liquidity and profitability-- There is a negative relationship between liquidity and
profitability. When working capital in relation to sales is increased it will reduce risk and
profitability on one side and will increase liquidity on the other side.
6. Management ability ─ Proper co-ordination in production and distribution of goods may
reduce the requirement of working capital, as minimum funds will be invested in absolute
inventory, non-recoverable debts, etc.
7. External Environment ─ With development of financial institutions, means of
communication, transport facility, etc., needs of working capital is reduced because it can be
available as and when needed.
21
Principles of Working Capital Management
The following are the principles of working capital management:
1. Principles of the risk variation─ Risk here refers to the inability of firm to maintain sufficient
current assets to pay its obligations. If working capital is varied relative to sales, the amount of
risk that a firm assumes is also varied and the opportunity for gain or loss is increased. In other
words, there is a definite relationship between the degree of risk and the rate of return. As a
firm assumes more risk, the opportunity for gain or loss increases. As the level of working
capital relative to sales decreases, the degree of risk increases. When the degree of risk
increases, the opportunity for gain and loss also increases. Thus, if the level of working capital
goes up, amount of risk goes down, and vice-versa, the opportunity for gain is like-wise
adversely affected.
2. Principle of equity position─ According to this principle, the amount of working capital
invested in each component should be adequately justified by a firm’s equity position. Every
rupee invested in the working capital should contribute to the net worth of the firm.
3. Principle of cost of capital─ This principle emphasizes that different sources of finance have
different cost of capital. It should be remembered that the cost of capital moves inversely with
risk. Thus, additional risk capital results in decline in the cost of capital.
4. Principle of maturity of payment─ A company should make every effort to relate maturity
of payments to its flow of internally generated funds. There should be the least disparity
between the maturities of a firm’s short-term debt instruments and its flow of internally
generated funds, because a greater risk is generated with greater disparity. A margin of safety
should, however, be provided for any short-term debt payment.
Adequacy of Working Capital
The importance of adequacy of working capital can hardly be over-emphasized. John L. O.
Donnell and Milton S. Gladberg observe “Many a times business failure takes place due to lack
of working capital.”19 Hence, working capital is considered as the life blood and the
22
controlling nerve centre of a business. Inadequate working capital is business ailment.20
Therefore, a firm has to maintain a sound working capital. It should be adequate foe the
following reasons:
1. It protects a business form the adverse effects of shrinkage in the values of current assets.
2. It is possible to pay all the current obligations promptly and to take advantage of cash discounts.
3. It ensures, to a greater extent, the maintenance of a company’s credit standing and provides for
such emergencies as strikes, floods, fires etc.
4. It permits the carrying of inventories at a level that would enable a business to serve
satisfactorily the needs of its customers.
5. It enables a company to extend favourable credit terms to its customers.
6. It enables a company to operate its business more efficiently because there is no delay in
obtaining materials, etc., because of credit difficulties.
7. It enables a business to withstand periods of depression smoothly.
8. There may be operating losses or decreased retained earnings.
9. There may be excessive non-operating or extraordinary losses.
10. The management may fail to obtain funds from other sources for purposes of expansion.
11. There may be an unwise dividend policy
12. Current funds may be invested in non-current assets
13. The management may fail to accumulate funds necessary for meeting debentures on maturity.
14. Increasing price may necessitate bigger investments in inventories and fixed asset.
Source of Working Capital
Conventional generalizations relating to financing of working capital suggest that an amount
equal to the basic minimum of current assets should be financed from long-term source and
that only seasonal needs of working capital should be financed from short-term sources.21 It is
obvious that such an arrangement helps to keep the cost of working capital finance to the
minimum for an enterprise and gives a rise to its rate of return on the total funds employed.
Viewed thus, the sources of working finance can be classified into permanent and the current
sources of working capital finance
24
COMPANY ANALYSIS
Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai,
Maharashtra. It is a subsidiary of Unilever, a British-Dutch company. HUL's products include
foods, beverages, cleaning agents, personal care products and water purifiers.
HUL was established in 1933 as Lever Brothers and, in 1956, became known as Hindustan
Lever Limited, as a result of a merger among Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It employs over 16,000 workers, while it also indirectly helping
to facilitate the employment of over 65,000 people. The company was renamed in June 2007
as "Hindustan Unilever Limited".
Brands and Product
HUL is the market leader in Indian consumer products with presence in over 20 consumer
categories such as soaps, tea, detergents and shampoos amongst others with over 700 million
Indian consumers using its products. Sixteen of HUL's brands featured in
the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2014), carried
out by Brand Equity, a supplement of The Economic Times.
Food
Annapurna salt and spices
Bru coffee
Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea
Kissan squashes, ketchups, juices and jams
Lipton tea
Knorr soups & meal makers and soupy noodles
Kwality Wall's frozen dessert
Modern Bread, ready to eat chapattis and other bakery items (now sold to Everstone Capital)
Magnum (ice cream)
25
Homecare Brands
Active Wheel detergent
Cif Cream Cleaner
Comfort fabric softeners
Domex disinfectant/toilet cleaner
Rin detergents and bleach
Sunlight detergent and colour care
Surf Excel detergent and gentle wash
Vim dishwash
Magic – Water
Personal care brands
Aviance Beauty SolutionsN
Axe deodorant and after shaving lotion and soap
LEVER Ayush Therapy ayurvedic health care and personal care products
Breeze beauty soap
Brylcreem hair cream and hair gel
Clear anti-dandruff hair products
Clinic Plus shampoo and oil
Close Up toothpaste
Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants
Denim shaving products
Fair & Lovely skin-lightening products
Hamam
26
Indulekha ayurvedic hair oil
Lakmé beauty products and salons
Lifebuoy soaps and hand wash range
Liril 2000 soap
Lux soap, body wash and deodorant
Pears soap, body wash
Pepsodent toothpaste
Pond's talcs and creams
Rexona
Sunsilk shampoo
Sure anti-perspirant
Vaseline petroleum jelly, skin care lotions
TRESemmé
TIGI
Water Purifier Brand
Pureit Water Purifier
Research facilities
Unilever R&D Centre in Bangalore
The Hindustan Unilever Research Centre (HURC) was set up in 1966 in Mumbai, and
Unilever Research India in Bangalore in 1997. Staff at these centres developed many
innovations in products and manufacturing processes. In 2006, the company's research
facilities were brought together at a single site in Bangalore.
Sustainable living
Unilever launched Sustainable Living Plan in on 15 November 2010 at London, Rotterdam,
New York and New Delhi simultaneously.
27
Headquarters
Hindustan Unilever's corporate headquarters are located at Andheri (E), Mumbai. The
campus is spread over 12.5 acres of land and houses over 1,600 employees. Some of the
facilities available for the employees include a convenience store, a food court, an
occupational health Centre, a gym, a sports & recreation Centre and a day care Centre. The
Campus is designed by Mumbai based architecture firm Kapadia Associates. The campus
received a certification from LEED (Leadership in Energy and Environmental Design) Gold
in 'New Construction' category, by Indian Green Building Council (IGBC), Hyderabad, under
license from the United States Green Building Council (USGBC)
The company's previous headquarters was located at Back Bay Reclamation, Mumbai at the
Lever House, where it was housed for over 46 years.
Controversy
Mercury pollution
Main article: Kodaikanal mercury poisoning
In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was accused of
dumping glass contaminated with mercury in municipal dumps, or selling it on to scrap
merchants unable to deal with it appropriately. After much work by activists, Hindustan lever
finally admitted in the court to being guilty in the case.
Skin lightening creams
Main article: Fair & Lovely (cosmetics)
Hindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for women in
India.[22] The company had to cease television advertisements for the product in 2007.
Advertisements depicted depressed, dark-complexioned women, who had been ignored by
employers and men, suddenly finding new boyfriends and glamorous careers after the cream
had lightened their skin. In 2008 Hindustan Unilever made former Miss World Priyanka
Chopra a brand ambassador for Pond's, and she then appeared in a mini-series of television
commercials for another skin lightening product, 'White Beauty', alongside Saif Ali
Khan and Neha Dhupia; these advertisements, showing Priyanka's face with a clearly darker
complexion against the visibly fairer Neha Dhupia, were widely criticised for perpetuating
racism and lowering the self-esteem of women and girls throughout India who were misled
by HULN to believe that they needed to be white to be beautiful.
28
Triclosan
Several academic papers have pointed out the firm's continued use of
the antibacterial agent Triclosan ('Active B') in India because it is under review by the
American Food and Drug Administration (US FDA).
Awards
The Institute of Competitiveness, India, has recognized Hindustan Unilever Limited’s Project
Shakti for ‘Creating Shared Value’ and bestowed upon the company the Porter Prize for
2014.It ranked number one on the Forbes list of ‘Most Innovative Companies’ across the
globe for 2014 and was ranked number three on Fortune India’s list of India’s most admired
companies in a list compiled with the help of a global management consultancy Hay
Group. It received an award from Dun & Bradstreet Corporate Awards in 2014.and was
Client of the Year at Effies 2013 – 2014. It also received an award as a 'Conscious Capitalist
of the Year' at the 2013 Forbes India Leadership Awards. HUL won 12 awards overall with 4
Golds, 4 Silvers and 4 Bronzes at the 2013 Emvies Awards. In 2013, HUL ranked number
two on the on Fortune India's 2013 '50 Most Admired Companies list'. and was declared the
fourth most Respected Company in India in a survey conducted by Business World in 2013.
As per a 2015 Nielsen Campus Track-business school survey, Hindustan Unilever emerged
among the top employers of choice for B-school students graduating that year. It has often
been called a 'Dream Employer' for application by B-School students in India.
In 2012, HUL was recognized as one of the world's most innovative companies by Forbes.
With a ranking of number 6, it was the highest ranked FMCG Company. Hindustan Unilever
Limited (HUL) won the first prize at FICCI Water Awards 2012 under the category of
'community initiatives by industry' for Gundar Basin Project, a water conservationist
initiative. Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media Awards
organized by the Advertising Club Bombay in September 2012. The company received four
awards at the Spikes Asia Awards 2012, held in September. The awards included one Grand
Prix one Gold Award and two Silver Awards.
HUL's Chhindwara Unit won the National Safety Award for outstanding performance in
Industrial Safety. These awards were instituted by the Union Ministry of Labour and
Employment in 1965.
29
HUL was one of the eight Indian companies to be featured on the Forbes list of World's Most
Reputed companies in 2007.
In July 2012 Hindustan Unilever Limited won the Golden Peacock Occupational Health and
Safety Award for 2012 in the FMCG category for its safety and health initiatives and
continuous improvement on key metrics.
Hindustan Unilever Limited is rated as best 3Ci Company which is registered with National
Industrial Classification Code 15140.
Pond's Talcum Powder's packaging innovation has secured a Silver Award at the prestigious
24th DuPont Global Packaging Award, in May 2012.The brand was recognized for cost and
waste reduction.
In May 2012, HUL & Star Bazaar received the silver award for 'Creating Consumer Value
through Joint Promotional and Event Forecasting' at the 13th ECR Efficient Consumer
Response Asia Pacific Conference.
In 2011, HUL was named the most innovative company in India by Forbes and ranked 6th in
the top 10 list of most innovative companies in the world.
Hindustan Unilever Ltd received the National Award for Excellence in Corporate
Governance 2011 of the Institute of Company Secretaries of India (ICSI) for excellence in
corporate governance
In 2012, Hindustan Unilever emerged as the No. 1 employer of choice for B-School students
who will graduate in 2012. In addition, HUL also retained the 'Dream Employer' status for the
3rd year running
Hindustan Unilever ranked No. 2 in Fortune India's Most Admired Companies list, which was
released by Fortune India in partnership with the Hay Group. The company received the
highest scores for endurance and financial soundness
HUL was ranked 47th in The Brand Trust Report 2014 published by Trust Research
Advisory. 36 HUL brands also featured in the list including Lux, Dove, Lipton, Vim, Kissan,
Bru, Rexona, Close Up, Clinic Plus, Pond's, Knorr, and Pepsodent among others.
HUL emerged as the top 'Dream Employer' as well as the top company considered for
application in the annual B-School Survey conducted by Nielsen in November 2010. This
was the second successive year that HUL has been rated as the top 'Dream Employer' in
30
India. HUL has also emerged as the top employer of choice among the top six Indian
Institutes of Management (IIMA, B, C, L, K and I).
HUL won three awards at the 'CNBC Awaaz Storyboard Consumer Awards' in 2011 – Most
Recommended FMCG Company of the Year; Most Consumer Conscious Company of the
Year and Digital Marketer of the Year.
The company was felicitated in April 2010 for receiving the highest number of patents in the
year 2009 at Annual Intellectual Property Awards 2010.
In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Business world, one of India's leading business magazines. The rating was based on
a compilation of the magazine's annual survey of India's most reputed companies over the
past 25 years.
HUL is one of the country's largest exporters; it has been recognized as a Golden Super Star
Trading House by the Government of India.
Name Designation
Harish Manwani Chairman
Pradeep Banerjee Executive Director
Aditya Narayan Independent Director
O P Bhatt Independent Director
Kalpana Morparia Independent Director
Name Designation
Sanjiv Mehta Managing Director & CEO
Dev Bajpai Executive Director
S Ramadorai Independent Director
Sanjiv Misra Independent Director
31
SWOT analysis of Hindustan Unilever –
1) Brand visibility – From soap to mineral water, HUL is shaping the life of 1.3
billion people daily. Being in consumer goods market with its 20 consumer categories such as
soap, tea, detergents, shampoo etc. & each having large assortments, helped HUL in
occupying the large shelf space of Grocery /departmental stores which itself explains the
acceptance/demand of their products in the market.
2) Market leader in consumer goods: According to Nielsen data 2 out of three Indian
consumers use HUL products. HUL used selective targeting strategy to emerge as a market
leader in the Indian market.
3) Innovative FMCG Company: Hindustan Unilever Research center (HURC),Mumbai &
Unilever Research India, Bangalore ,both research facilities were bought together in a single
site in Bangalore in 2006.Employees in this facility continuously working & developing
innovations in products & manufacturing processes which is helping the HUL to set it as
front-runner in the consumer goods market.
4) Extensive & integrated distribution system: HUL’s brands are now household name which
is only possible due to its 4 tier distribution system namely
a) Direct Coverage through common stockist within a town of population under 50000
people.
b) Indirect coverage: Villages closer to larger urban markets have been targeted.
c) Streamline: Leveraging the rural wholesale market to reach markets inaccessible by road.
d) Project SHATKI AMMA: It targeted the very small villages (2000 population) & tapped
into pre-existing women’s SHG (self-help groups). Markets have been segmented based on
their accessibility & business potential.
5) High Brand awareness: By signing popular celebrities for the advertisements of their
products HUL has created positive word of mouth over the ages which helped them in social
acceptance of their products intelligently targeted & meant for different income groups.
32
6) Product line: It offers product categories namely oral care, personal care, household
surface, fabric care and pet nutrition etc. having deep assortments across the product
categories.
7) Financial position: Having more than 80 years of experience in the consumer goods market
& backed by Unilever who owns 67% controlling share in HUL, It is financially strong.
8) Market share: Through high penetration in the market, HUL had managed to hold their
high market share in different product categories.
9) Share of Wallet: Whether one buys surf /wheel /Rin detergent it will go to HUL’s pockets.
HUL strategy to offer different products for different income groups (selective targeting) has
been successful in having share of wallet of a consumer.
Weaknesses in the SWOT analysis of Hindustan Unilever (HUL)
1) Decreasing Market share: Competitors focusing on a particular product & eating up HUL’s
share, like Ghadi & Nirma detergent eating up HUL’s wheel detergent market share.
2) Large number of brands in different product categories: Sometimes having broad
brand portfolio can lead to confused positioning. Price positioning in some categories allows
for low price competition like AMUL captured Kwality’s market share.
SWOT analysis of Hindustan Unilever – HUL SWOT analysis
Strengths in the SWOT analysis of Hindustan Unilever (HUL)
1) Brand visibility – From soap to mineral water, HUL is shaping the life of 1.3
billion people daily. Being in consumer goods market with its 20 consumer categories such as
soap, tea, detergents, shampoo etc. & each having large assortments, helped HUL in occupying
the large shelf space of Grocery /departmental stores which itself explains the
acceptance/demand of their products in the market.
2) Market leader in consumer goods: According to Nielsen data 2 out of three Indian consumers
use HUL products. HUL used selective targeting strategy to emerge as a market leader in the
Indian market.
3) Innovative FMCG Company: Hindustan Unilever Research center (HURC),Mumbai &
Unilever Research India, Bangalore ,both research facilities were bought together in a single
site in Bangalore in 2006.Employees in this facility continuously working & developing
33
innovations in products & manufacturing processes which is helping the HUL to set it as front-
runner in the consumer goods market.
4) Extensive & integrated distribution system: HUL’s brands are now household name which
is only possible due to its 4 tier distribution system namely
a) Direct Coverage through common stockist within a town of population under 50000 people.
b) Indirect coverage: Villages closer to larger urban markets have been targeted.
c) Streamline: Leveraging the rural wholesale market to reach markets inaccessible by road.
d) Project SHATKI AMMA: It targeted the very small villages (2000 population) & tapped
into pre-existing women’s SHG (self-help groups). Markets have been segmented based on
their accessibility & business potential.
5) High Brand awareness: By signing popular celebrities for the advertisements of their
products HUL has created positive word of mouth over the ages which helped them in social
acceptance of their products intelligently targeted & meant for different income groups.
6) Product line: It offers product categories namely oral care, personal care, household surface,
fabric care and pet nutrition etc. having deep assortments across the product categories.
7) Financial position: Having more than 80 years of experience in the consumer goods market
& backed by Unilever who owns 67% controlling share in HUL, It is financially strong.
8) Market share: Through high penetration in the market, HUL had managed to hold their high
market share in different product categories.
9) Share of Wallet: Whether one buys surf /wheel /Rin detergent it will go to HUL’s pockets.
HUL strategy to offer different products for different income groups (selective targeting) has
been successful in having share of wallet of a consumer.
Weaknesses in the SWOT analysis of Hindustan Unilever (HUL)
1) Decreasing Market share: Competitors focusing on a particular product & eating up HUL’s
share, like Ghadi & Nirma detergent eating up HUL’s wheel detergent market share.
2) Large number of brands in different product categories: Sometimes having broad
brand portfolio can lead to confused positioning. Price positioning in some categories allows
for low price competition like AMUL captured Kwality’s market share.
34
Opportunities in the SWOT analysis of Hindustan Unilever (HUL)
1) Expanding market: By penetrating more in the rural markets through its project Shakti
AMMA and transition of unorganized business to organized one will lead to further expansion
of the consumer goods market.
2) Awareness in usage rate of consumer goods: People getting more aware and conscious about
the usage may be through advertising /word of mouth /doctor prescription ,is resulting in
increase in usage rate of the these products.
3) Increasing Income levels: Due to stable political scenario, improved literacy rate &
controlled inflation, disposable income of the people is increasing thereby resulting into
upsurge in demand & changing their lifestyle.
Threats in the SWOT analysis of Hindustan Unilever (HUL)
1) Competition in the market: With increasing number of local & national players it’s becoming
very hard for the companies to differentiate themselves from others. There is also threat from
counterfeit products destroying its brand image in the market.
2) Price of commodities: Increasing price of commodities will result in further increase in the
price. Further increase in price will result in decrease in sales, margins & brand switching.
3) Buyers power: With highly diversified consumer goods market where there are lots of brands
claiming different sorts of benefits, it’s very difficult for consumers to stick to a particular brand
& hence results into brand switching where consumer got power to select a brand based on
several factors like availability, reference group recommendation, preference & price.
36
REVIEW OF LITERATURE
Studies on Working Capital Management in India and Abroad
Studies on components of Working Capital in India and Abroad
37
It deals with all the aspects of working capital of which in depth study has been carried out as
discussed below.
1. Bhatt V. V. (1972) widely touches upon a method of appraising working capital finance
applications of large manufacturing concerns. It states that similar methods need to be devised
for other sectors such as agriculture, trade etc. The author is of the view that banks while
providing short-term finance, concentrate their attention on adequacy of security and
repayment capacity. On being satisfied with these two criteria they do not generally carry out
any detail appraisal of the working of the concerns.
2. Smith Keith V. (1973) believes that Research which concerns shorter range or working capital
decision making would appear to have been less productive. The inability of financial managers
to plan and control properly the current assets and current liabilities of their respective firms
has been the probable cause of business failure in recent years. Current assets collectively
represent the single largest investment for many firms, while current liabilities account for a
major part of total financing in many instances. This paper covers eight distinct approaches to
working capital management. The first three - aggregate guidelines, constraints set and cost
balancing are partial models; two other approaches - probability models and portfolio theory,
emphasize future
3. Uncertainty and interdepencies while the remaining three approaches - mathematical
programming, multiple goals and financial simulation have a wider systematic focus.
4. Chakraborthy S. K. (1974) tries to distinguish cash working capital v/s balance sheet working
capital. The analysis is based on the following dimensions:
5. Working capital in common parlance b) Operating cycle concept
6. Computation of operating cycle period in all the four cases. The purpose of the analysis is to
demonstrate operating cycle concepts based on published annual reports of the firms.
7. Natarajan Sundar (1980) is of the opinion that working capital is important at both, the national
and the corporate level. Control on working capital at the national level is exercised primarily
through credit controls. The Tandon Study Group has provided a comprehensive operational
framework for the same. In operational terms, efficient working capital consists of determining
38
the optimum level of working capital, financing it imaginatively and exercising control over it.
He concludes that at the corporate level investment in working capital is as important as
investment in fixed assets. And especially for a company which is not growing, survival will
be possible only so long as it can match increase in operational cost with improved operational
efficiency, one of the most important aspects of which is management of working capital.
8. Kaveri V. S. (1985) has based his writing on the RBI‟s studies on finances of large public
limited companies. This review of working capital finance refers to two points of time i.e., the
accounting years ending in 1979 and 1983 and is based on the data as given in the Reserve
Bank of India on studies of these companies for the respective dates. He observes that the Indian
industry has by and large failed to change its pattern of working capital financing in keeping
with the norms suggested by the Chore Committee. While the position of working capital
management showed some investment between 1975-79 and 1979-83, industries have not
succeeded in widening the base of long-term funds to the desired extent. The author concludes
with the observation that despite giving sufficient time to the industries to readjust the capital
structure so as to shift from the first method to the second method, progress achieved towards
this end fell short of what was desired under the second method of working capital finance.
9. Bhattacharyya Hrishikes (1987) tries to develop a comprehensive theory and tool of working
capital management from the system’s point of view. According to this study, capital is often
used to refer to capital goods consisting of a great variety of things, namely, machines of
various kinds, plants, houses, tools, raw materials and goods-in-process. A finance manager of
a firm looks for these things on the assets side of the balance sheet. For capital he turns his
attention to the other side of the balance sheet and never commits a mistake. His purpose is to
balance the two sides in such a way that net worth of the firm increases without increasing the
riskiness of the business. This balancing is financing, i.e., financing the assets of the firm by
generating streams of liabilities continuously to match with the dynamism of the former. The
study is an improvement of the concept of Park and Gladson who were not able to capture the
entire techno-financial operating structure of a firm.
39
10. Rao K.V. and Rao Chinta (1991) observe the strong and weak points of conventional
techniques of working capital analysis. The result has been obviously mixed while some of the
conventional techniques which could comprehend the working capital behavior well; others
failed in doing the job properly. The authors have attempted to evaluate the efficiency of
working capital management with the help of conventional techniques i.e., ratio analysis. The
article concludes prodding future scholars to search for a comprehensive and decisive yardstick
in evaluating the working capital efficiency.
Components of Working Capital
It deals with all the major areas of working capital management, i.e. management of cash and
bank, management of receivables and management of inventory which have been discussed
below:
Cash and Bank Management
1. Ansari M. N. A. and Keyvani S. M A. (1995) examine the efficiency and effectiveness of
liquidity management in Indian Petrochemicals Corporation Ltd. (IPCL). The study has been
conducted with the aid of an analysis of both the absolute amount of net working capital and
the liquidity ratios for a period from 1983-84 to 1993-94. The liquidity position of the unit
under the study has also been compared with that of the chemicals and petrochemicals
industry in India. The study concluded that IPCL had increasingly followed a tight control
over the working capital. It was also observed that liquidity ratios in IPCL fell below their
standard norms and also their industry averages. Further, IPCL‟s liquidity was marked with
frequent fluctuations, while the same in the case of the industry remained constant throughout
the period of the study.
2. Datta Tanmoy (1995) describes various thoughts on management of liquidity. The
major objective indicators of the problem of liquidity always remain in the background,
obtainable only through inquiry from various internal and external sources. The author
concludes with the observation that while revisiting along the foregoing winding path of
liquidity, it can be reminded, as a passing remark, that managing of liquidity, more
specifically of illiquidity, is a labyrinthine process and, therefore, deserves a contingency
approach. The underlying idea is that there cannot be one best way to do anything.
40
Everything is contingent upon the situational factors, internal (controllable) and external
(non-controllable).
3. Laitinen Ekkki K. and Laitinen Teija (1998) aim to evaluate the information contained
in inventory cash management models to predict failure. The management model was
presented both in a static and dynamic form. The study concludes with the observations that
although the static cash management model provides important information for failure
prediction in the first year prior to bankruptcy, this information is not incremental over
traditional financial variables. The dynamic model clearly outperformed the static model in
failure prediction. The estimate for the scale elasticity of cash in the dynamic model provided
information which had incremental value over the traditional financial variables. This
information also remarkably increased the classification accuracy based on traditional
financial variables in the first year before bankruptcy.
4. Hyderabad R. L. (1999) focuses on current assets financing policies. He further states
that a proper evaluation of the assets - liquidity and financial structure liquidity is „quiet
essence‟ for sound working capital. The author firmly believes that the considerations of
working capital investment and financing are very crucial and should be given due
significance by the management for framing the overall working capital policy.
5. Coughenour Jay F. and Deli Daniel N., (2002) closely examine the influence of NYSE
Specialist firm organizational form on the nature of liquidity provision. A comparison is
made between closely held firms whose specialists provide liquidity with their own capital
and widely held firms whose specialists provide liquidity with diffusely owned capital. The
authors further argue that specialists using their own capital have a greater incentive and
ability to reduce adverse selection cost, but face a greater cost of capital.
41
Receivables Management
1. Milan Shehzad L. and Smith Clifford W. (1992) develop and test hypothesis that explains
the choice of accounts receivable management policies. The test focuses on both cross
sectional expansions of policy choice determinants as well as incentives to establish captives.
The authors find that the size, concentration and credit standing of the firm’s traded debts and
commercial papers are each important in explaining the use of factoring, accounts receivable,
secured debt, captive finance subsidiaries and general corporate credit. They also offered
evidence that captive formation allows more flexible financial contracting. But they found no
evidence that captive formation expropriates bondholder wealth.
2. Hossain Syed Zabid (1996) attempts to analyze receivables management in public
sector TIB. The study covers all the 40 Textile units working under the BTMC.
In this article the writer has found that it is the most neglected area in the public sector Textile
Industry of Bangladesh. According to the author there is hardly any study in this area, and it
is an attempt to fill this gap. As the tool of analysis various ratios are calculated. The paper
concludes with these observations: Receivables management has been found to be in a poor
shape in BTMC and the turnover of accounts receivable was very high, while the turnover of
total receivables was low and unsatisfactory. The opposite of this was true in the case of
average collection period.
Inventory Management
1. Lingaraj B. P., Balasubramanian, R. and Krishnamurthy T. V. (1983) focus their study
on an inventory management system and material information system which were developed
for an aircraft plant in India. The authors have included an inventory classification scheme
based on value and importance, and a vendor rating system.
In conclusion the authors have cited several intangible benefits from the new system. It was
also observed that the new system resulted in reduction of inventory by 10% and overall
delivery time by 3 months for the year.
42
2. Banday Shabir Hassan (1996) tries to explain how Maruti Ltd started to manufacture
the first high quality, low cost and fuel efficient car in India, and how the company was in
search of a foreign partner whosoever be willing to accept Maruti Udyog Ltd. requirements in
terms of product mix, technology transfer, equity participation and others. The paper also
discusses at length ABC classification, determination of inventory norms and inventory
control of inventory management. Besides gearing up the control over the inventory, the
company should take cognizance of certain points as suggested by the researcher.
3. Sikidar Sujit (1996) focuses on the nature and significance of some sophisticated tools
of inventory control. The article also examines the inventory management practices of some
Indian companies. The main objective of this paper is to ascertain the impact of time lag
involved between the placing of an order and receipt of inventory so that it becomes available
just in time. At the end of the study the author finds that the internal control system of JIT has
not been found satisfactory over the companies under the study. But on the other hand, the
maintenance of cost records and valuation of inventory was done properly as per Generally
Accepted Accounting Principles (GAAP) and followed consistency over the years.
4. Jain Arvind and Jain Nisha (1997) study the importance of inventory management in
scooter manufacturing companies in India. The main objective of this paper is to examine the
position of inventory control techniques in scooter manufacturing companies in India. And to
suggest tools and techniques for overcoming the present problems in inventory management.
At the end of the study the authors suggest that if the units make an honest effort to
implement the techniques as suggested by them, present problems in inventory management
can certainly be overcome.
5. Luciano Elisa and Peccati Lorenzo (1999) make a detailed study of the use of adjusted
present value techniques in a problem of inventory management, the temporary sale price
problem, in the presence of equity or debt financing. While traditional net present value
approaches produced results very similar to those of the average cost approach, their
consideration of capital structure of the firm opens the way to theoretically and numerically
different inventory policies.
43
The authors intend to discuss some financial implications of inventory management. At the
end of the study the writers observe that the optimum conditions that they obtain depend on
the financial variables characterizing the problem. A fundamental role is played by the two
interest rates ρ and δ which are, respectively, the opportunity cost of equity and the cost of
debt. The second one was neglected by the NPV approach, while it enters their approach
through the APV.
6. Sharma M R (1999) emphasizes on the application of certain inventory control
techniques for optimizing investment in inventories without adversely affecting the smooth
functioning of production and sales. In conclusion he stresses upon the need for further
improvement in inventory management systems in the enterprises. This would lead to the
industry becoming profit making.
7. Aravanan S. (1999) focuses on the methods and techniques of inventory management
and control. On the basis of the analysis, he has observed that inventory is that component of
working capital that is not at all properly managed.
He opines that compared to general inventory control techniques, selective inventory control
methods have a better role to play. He has keenly observed that of all the selective inventory
control techniques, ABC analysis with its several advantages is the most widely used.
8. Aravanan S. (1999) focuses on a good inventory control system which has several
advantages. Overall it deals with theft of materials and persuades the people to handle the
material carefully as a result of which losses are minimized.
9. Anitha H. S. (1999) emphasizes on the role of the finance manager to frame
appropriate policies with regard to working capital management in respect of its various
components, like cash, receivables and inventory. This would be highly beneficial to the
profitability, liquidity and structural health of the organisation.
44
10. Pramanik Alok Kumar and Roa Mohana P. (1999) focus on the role of different
operational research techniques in the inventory control functions. According to them the
major operational research techniques developed and applied so far to the business decision-
making and control are linear programming, game theory, decision theory, etc.
11. Parmar S. J. (2003) has made an earnest attempt to evaluate the performance with
respect to inventory management of two selected units GSFC and GNFC. He has used
various ratios as a tool of analysis. From the study it is concluded that the overall
performance regarding inventory management at GNFC was better in terms of efficient
utilization of inventories whereas GSFC was not able to do so during the study period. GSFC
maintained a larger amount of idle funds throughout the study period through the investment
in inventories in relation to total current assets as compared to GNFC. The analysis of
inventory management of selected units showed that the overall performance of GNFC was
encouraging while that of GSFC was not alarming.
12. Santhanam S. P. (2008) discusses how to value inventories and present this in the
financial statements. Inventories normally constitute a significant portion of the total assets,
particularly in case of manufacturing and trading entities as well as the service renderings
entities. Valuation of inventories, therefore, assumes special importance. A primary issue in
accounting for inventories is the determination of the value at which inventories are carried in
the financial statements.
46
TITLE
“A STUDY ON WORKING CAPITAL”
A CASE STUDY ON HINDUSTAN UNILEVER LIMITED COMPANY
OBJECTIVES OF THE STUDY:-
The mandatory objective is to study working capital structure and also to measure the social
performance of the selected corporate concept. The objective of the study is to analyze of the
working capital structure of Hindustan Unilever Limited Company.
The main objectives of this study are as under:
a. To understand the concept of working capital structure.
b. To understand the trend analysis of financial statement.
c. To document the capital structure in Hindustan Unilever Limited company.
d. To analyze of working capital structure in Hindustan Unilever Limited company.
e. To analyze the disclosure of financial information.
f. To evaluate the performance of the cement Hindustan Unilever Limited company in terms of
Ratio.
g. To study comparison of last 5 years performance and social responsibility of selected ten
corporate units.
SCOPE OF THE STUDY:-
The scope of the study is very wide. However, the researcher has selected India's leading
companies in Hindustan Unilever Limited Company.
NATURE OF THE STUDY:-
As one of the objectives is to acquire deeper insight into the various pertinent aspects of the
problem, thus the study can be termed as exploratory in nature. The researcher has also utilized
the facts and information available in various secondary sources to make critical evaluation and
thus from this point of view, the nature of the study becomes analytical.
47
PERIOD OF THE STUDY:-
As any researcher wish to collect all required data and information about the research so
collection of data, to analyze and for better conclusion, researcher was interested in proper
period. Here researcher undertakes research on working capital structure of Hindustan Unilever
Limited Company for the period of ten years.
The present study is made for a period of the ten accounting year starting from 2013-14 to
2017-18.
Researcher has selected the base year 2013-14.
This year is normal for the purpose of analysis and evaluation.
SOURCE OF THE DATA:-
Collection of data is blood vain for any type of research. The kind of data collected and the
method used to collect the data is a very important aspect of research. The kind of data collected
and the method used to collect the data is a very important aspect of research. There are two
basic means of data collection.
The researcher has used only secondary data collection for his convenience. Researcher gives
more emphases on secondary data because the researcher undertakes research in Working
Capital practices for which researcher need all Working Capital Structure reports and records
from Hindustan Unilever Limited Company, which are in nature of secondary data. The secondary
data have been collected from companies‟ website, annual reports and other published material.
RESEARCH METHODOLOGY:-
Researcher has followed scientific approach to design the research methodology for
investigation. For this study researcher has used secondary data as a source of information.
The following tools & techniques have been classified in the study.
48
ACCOUNTING TECHNIQUES:-
RATIO ANALYSIS:-
A ratio is a quotient of two numbers and the relation expressed between two figures. Ratio
analysis is a process of comparison of one figure against another, which makes ratio. Ratio
analysis is a very powerful, analysis tool useful for measuring performance of an organization.
The ratio analysis concentrates on the inter-relation-ship among the figures appearing in the
financial statement. The appraisal of the ratio will make proper the analysis about the strengths
and weakness of the firm’s operations.
SIGNIFICANCE
a) This study is important for the working capital structure in major aspects as under:
b) It can give understanding of practical approach or implementation overview.
c) It also gives comparative overview of working capital structure provisions in Hindustan
Unilever Limited Company.
LIMITATIONS OF STUDY:-
The limitation of study is as under:
a) Study is undertaken by individual researcher therefore all the limitation of the individual
researcher exists here also.
b) It is secondary data based study, so the limitations of the secondary data reveals with this
study.
50
COMPUTATION OF WORKING CAPITAL
PARTICULARS
HISTORICAL DATA
2013 2014 2015 2016 2017
CURRENT ASSSETS
Current Investments
1782.63 2457.95 2623.82 2297.52 3519
Inventories
2526.99 2747.53 2602.68 2528.36 2362
Trade Receivables
833.48 816.43 782.94 2758.82 928
Cash And Cash Equivalents
1707.89 2220.97 2537.56 1064.52 1671
Short Term Loans And Advances
648.26 537.68 657.27 673.29 306
Other Current Assets
70.74 71.91 59.28 62.46 625
TOTAL CURRENTS ASSETS
7569.99 8852.47 9263.55 9384.97 9411
QUICK ASSETS
5043 6104.94 6660.87 6856.61 7049
CURRENT LIABILITIES
Trade Payables
5167.69 5793.89 5288.9 5497.89 6006
Other Current Liabilities
616.15 852.94 908.05 853.79 809
TOTAL CURRENT LIABILITIES
5783.84 6646.83 6196.95 6351.68 6815
NET WORKING CAPITAL
1786.15 2205.64 3066.6 3033.29 2596
51
CURRENT RATIO
PARTICULARS
TOTAL CURRENTS ASSETS TOTAL CURRENT LIABILITIES
2013 7569.99 5783.84
2014 8852.47 6646.83
2015 9263.55 6196.95
2016 9384.97 6351.68
2017 9411 6815
CURRENT RATIO CURRENT ASSETS/ CURRENT LIABLITIES
PARTICULARS CURRENT RATIO
2013 1.31:1
2014 1.33:1
2015 1.49:1
2016 1.48:1
2017 1.38:1
52
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1 2 3 4 5
PARTICULARS TOTAL CURRENTS ASSETS TOTAL CURRENT LIABILITIES
1.2
1.25
1.3
1.35
1.4
1.45
1.5
1.55
2013 2014 2015 2016 2017
53
INTERPRETATION FROM CURRENT RATIO OF HUL:
The current ratio was 1.31 at the beginning of the year 2013 and there is slight increase in the
next year 2014 to 1.33 which is 1.5% increase from the previous year. However there is
significant increase in the current ratio (1.49) is absorbed in the following year 2015 which is
primarily driven by increase in major elements of current asset i.e. current investments, cash
and cash equivalents, Short Term Loan and Advances (12%) and meaningful reduction in the
Trade payables (9%). Eventually, in the next year 2016 the ratio didn’t change much from the
previous year and stayed at 1.48 despite the significant increase in Trade receivables (from 783
to 2759) mainly because this increase is offset by reduction in Cash and Cash equivalent (2538
to 1065); this indicates that company has given more time to debtors for paying back the
balance for the goods sold and reasoning to it is hard to understand as company might invest
more on working capital to keep customer connected with company which can be interpreted
as investment for the competitive advantage or it can be interpreted as debtors inability to
payback the balance on time. Subsequently in the year 2017, this situation didn’t stand long
and it is absorbed trade receivables came to the normal level and drop in cash and cash
equivalent is noted and one can absorb that there is drastic jump in Current investment from
2298 to 3519 which represent a 53% increase from previous year that shows company has
effectively moved good portion of cash and cash equivalent to better return making asset
(current investment).
54
QUICK RATIO
PARTICULARS QUICK ASSETS CURRENT LIABLITIES
2013 5043 5783.84
2014 6104.94 6646.83
2015 6660.87 6196.95
2016 6856.61 6351.68
2017 7049 6815
QUICK RATIO QUICK ASSETS/CURRENT LIABILTIES
PARTICULARS QUCIK RATIO
2013 0.87
2014 0.92
2015 1.07
2016 1.08
2017 1.03
55
0
1000
2000
3000
4000
5000
6000
7000
8000
1 2 3 4 5
PARTICULARS QUICK ASSETS CURRENT LIABLITIES
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2013 2014 2015 2016 2017
56
INTERPRETATION FROM QUICK RATIO OF HUL:
The quick ratio is an indicator of a company’s short-term liquidity,and measures a company’s
ability to meet its short-term obligations with its most liquid assets. Because we're only
concerned with the most liquid assets, the ratio excludes inventories from current assets
The quick ratio measures the dollar amount of liquid assets available for each dollar of current
liabilities
The ideal ratio is 1 there is positive trend in quick ratio in 2013 quick ratio is 0.87 and in 2016
the quick ratio is 1.03 which is significantly increased over period of time. This also implies
that company is maintaining good turnover ratio and discarding unproductive assets and
efficient in collection of cash of credit sales by giving reasonable period.
57
STOCK TURN OVER RATIO
YEAR COGS STOCK
AV STOCK
2013 13519.96 2526.99 2526.99
2014 14510 2747.53 5274.52
2015 15565.27 2602.68 5350.21
2016 15225.88 2528.36 5131.04
2017 15529 2362 4890.36
STOCK TUROVER RATIO COGS/AVERAGE STOCK
YEAR RATIO
2013 5.350223
2014 2.750961
2015 2.909282
2016 2.967406
2017 5.175431
58
0
1
2
3
4
5
6
2013 2014 2015 2016 2017
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2013 2014 2015 2016 2017
COGS STOCK AV STOCK
59
INTERPRETATION OF INVENTORY/STOCK TURNOVER RATIO OF
HUL:
Inventory turnover is a ratio showing how many times a company's inventory is sold and
replaced over a period of time. The days in the period can then be divided by the inventory
turnover formula to calculate the days it takes to sell the inventory on hand.
Inventory turnover ratio vary significantly among industries. A high ratio indicates fast
moving inventories and a low ratio, on the other hand, indicates slow moving or obsolete
inventories in stock. A low ratio may also be the result of maintaining excessive inventories
needlessly. Maintaining excessive inventories unnecessarily indicates poor inventory
management because it involves tiding up funds that could have been used in other business
operations.
In this context the turnover ratio in 2013 is 5.35 and showed a negative trend from 2014 to
2016 and in 2017 there is significant improvement this shows that is company is employing
good technology and anyalsing demand for inventory and maintained efficient supply chain
and significantly maintained its pricing strategy.
60
CREDITORS TURNOVER RATIO
YEAR PURCAHSE Trade Payables
AV PAYABLES
2013 3,235.30
5167.69 5167.69
2014 3,350.19
5793.89 5480.79
2015 3,697.96
5288.9 5541.395
2016 3,951.15
5497.89 5393.395
2017 4,166.00
6006 5751.945
CREDITORS TUROVER RATIO CREDIT PURCAHSE/AVERAGE CREDITORS
YEAR RATIO
2013 0.626063
2014 0.61126
2015 0.667334
2016 0.732591
2017 0.724277
61
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
2013 2014 2015 2016 2017
PURCAHSE Trade Payables AV PAYABLES
0.54
0.56
0.58
0.6
0.62
0.64
0.66
0.68
0.7
0.72
0.74
0.76
2013 2014 2015 2016 2017RATIO
62
INTERPRETATION OF CREDITORS TURN OVER RATIO OF HUL”
Accounts payable turnover ratio (also known as creditor’s turnover ratio or creditors’ velocity)
is computed by dividing the net credit purchases by average accounts payable. It measures the
number of times, on average, the accounts payable are paid during a period. Like receivables
turnover ratio, it is expressed in times
Accounts payable turnover ratio indicates the creditworthiness of the company. A high ratio
means prompt payment to suppliers for the goods purchased on credit and a low ratio may be
a sign of delayed payment.
Accounts payable turnover ratio also depends on the credit terms allowed by suppliers.
Companies who enjoy longer credit periods allowed by creditors usually have low ratio as
compared to others.
A high ratio (prompt payment) is desirable but company should always avail the credit facility
allowed by the suppliers.
Their exist a positive trend in creditors turnover ratio this shows that the company is paying off
its liabilities early and this mainly because creditors are giving less credit period so hence the
company should negotiate the credit terms or change the supplier
63
DEBTORS TURNOVER RATIO
YEAR CREDIT SALES
Trade Receivables
AV RECIEVABLES
2013 10001.76 833.48 833.48
2014 9797.16 816.43 824.955
2015 9395.28 782.94 799.685
2016 33105.84 2758.82 1770.88
2017 11136 928 1843.41
DEBTORS TUROVER RATIO CREDIT SALES/AVERAGE DEBTORS
YEAR RATIO
2013 12
2014 11.87599324
2015 11.74872606
2016 18.69456993
2017 16.040978404
64
0
5000
10000
15000
20000
25000
30000
35000
2013 2014 2015 2016 2017
CREDIT SALES Trade Receivables AV RECIEVABLES
0.54
0.56
0.58
0.6
0.62
0.64
0.66
0.68
0.7
0.72
0.74
0.76
2013 2014 2015 2016 2017
65
INTERPRETATION OF DEBTORS TURN OVER RATIO OF HUL:
Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many
times a business can turn its accounts receivable into cash during a period. In other words, the
accounts receivable turnover ratio measures how many times a business can collect its average
accounts receivable during the year.
Normally higher the debtors turnover ratio better it is. Higher turnover signifies speedy and
effective collection. Lower turnover indicates sluggish and inefficient collection leading to the
doubts that receivables might contain significant doubtful debts. Receivables collection period
is expressed in number of days. It should be compared with the period of credit allowed by the
management to the customers as a matter of policy. Such comparison will help to decide
whether receivables collection management is efficient or inefficient.
There is positive trend of debtor’s turnover ratio this implies that cash from debtors is collected
quickly by providing them with reasonable period and this has retrospective effect on current
ratio and quick ratio jump thus company is having good debtors management system.
67
CONCLUSIONS
Working capital management refers to a company's managerial accounting strategy designed
to monitor and utilize the two components of working capital, current assets and current
liabilities, to ensure the most financially efficient operation of the company. The primary
purpose of working capital management is to make sure the company always maintains
sufficient cash flow to meet its short-term operating costs and short-term debt obligations.
Efficient working capital management helps with a company's smooth financial operation, and
can also help to improve the company's earnings and profitability. Management of working
capital includes inventory management and management of accounts receivables and accounts
payables.
Proper management of working capital is essential to a company’s fundamental financial health
and operational success as a business. A hallmark of good business management is the ability
to utilize working capital management to maintain a solid balance between growth,
profitability and liquidity.
A business uses working capital in its daily operations; working capital is the difference
between a business's current assets and current liabilities or debts. Working capital serves as a
metric for how efficiently a company is operating and how financially stable it is in the short-
term. The working capital ratio, which divides current assets by current liabilities, indicates
whether a company has adequate cash flow to cover short-term debts and expenses.
Quick ratio -The ideal ratio is 1 there is positive trend in quick ratio in 2013 quick ratio is 0.87
and in 2016 the quick ratio is 1.03 which is significantly increased over period of time. This
also implies that company is maintaining good turnover ratio and discarding unproductive
assets and efficient in collection of cash of credit sales by giving reasonable period.
Inventory/stock ratio-In this context the turnover ratio in 2013 is 5.35 and showed a negative
trend from 2014 to 2016 and in 2017 there is significant improvement this shows that is
company is employing good technology and anyalsing demand for inventory and maintained
efficient supply chain and significantly maintained its pricing strategy.
Creditors ratio- Their exist a positive trend in creditors turnover ratio this shows that the
company is paying off its liabilities early and this mainly because creditors are giving less credit
period so hence the company should negotiate the credit terms or change the supplier .
68
Debtor’s ratio - There is positive trend of debtor’s turnover ratio this implies that cash from
debtors is collected quickly by providing them with reasonable period and this has retrospective
effect on current ratio and quick ratio jump thus company is having good debtors management
system.
Net working capital management-every year there is significant increase in working capital,
this increases is due to the reason for increase in sale.
Increase in previous year there is an increase in influence of 10% which let to 20% this shows
that company should adopt necessary changes in manufacturing process and stratergy.
Current asset- Current assets is a balance sheet account that represents the value of all assets
that can reasonably expect to be converted into cash within one year. Current assets include
cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid
expenses. And other liquid assets that can be readily converted to cash.
Working capital plays the significant role in smooth functioning of company and it has huge
impact on operating profit good and efficient working capital management will lead to increase
in operating profit. Thus working capital will help to improve the liquidity position of the
company.
SUGGESTIONS
Working capital is vital for the day-to-day operations of a Hindustan Unilever Company, such
as procuring raw materials, payment of wages, salaries and overheads, and making sure that
production matches demand, among other key objectives. That is why companies are constantly
looking for ways to improve their working capital position.
The simplest formula for improving the working capital position is to collect receivables
early and slow down the payables. This is, of course, easier said than done. Many companies
often find the reverse happening and run short on cash. Hence, a Hindustan Unilever Company
has to constantly monitor its cash flow. There should be enough funds for meeting short-term
debts, but that should not come at the cost of losing return on investments (ROI) in assets.
69
According to me 11 Best Way to Manage and Improve Working Capital
1. Incentivize Receivables:
Give incentives to customers who pay on time. Identifying delinquency early and taking prompt
action will prevent accounts from aging too much. Do not transact business with customers
who have a history of defaulting.
2. Meet Debt Obligations:
Ensure that all debt obligations are met on time. Use electronic payment systems to ensure
timely payments, and avoid situations that delay payments and attract penalty.
3. Choose Vendors Who Offer Discounts:
Discounts from vendors will help save finances. Maintain a good relationship with them. When
Hindustan Unilever Company is facing a cash flow crunch, this relationship will go a long way
in receiving some leniency.
4. Analyze Fixed and Variable Costs:
Determine whether fixed and variable costs can be reduced. If you examine carefully, you will
be able to identify expenses that are wasteful. By eliminating such expenses, you will have
more liquidity for working capital.
5. Examine Interest Payments:
You should examine the interest on loans or other forms of fixed debt. Check whether you are
eligible for a modification in interest rates and thereby pay a lower fixed amount every month.
Early clearing of loans can help reduce the cost of paying future installments. All this is saving,
and can be added to the working capital.
6. Manage Inventory:
Do not overstock your inventory. Make sure that finished goods are sold as soon as possible
and are not idling away in the warehouse. Cut products and services that are not performing.
7. Automate Accounts Receivable and Payment Monitoring:
Automating allows you to track inflows and outflows with ease. Make sure you have strong
collection teams to chase delinquent customers. Reward staff members who are able to collect
dues effectively.
70
8. Resolve Disputes with Customers and Vendors:
Resolve disputes with customers and vendors as early as possible. If a case goes to court, make
sure that it is resolved without undue delay so that unnecessary legal expenses are not incurred.
Receivables held up because of disputes are a major cause for concern for many companies.
9. Identify Other Ways to Improve Working Capital:
Your working capital position can always be improved by earning higher profits, issuing
company stock, taking on more debt, and selling assets for cash. However, these strategies
should only be considered as the last resort.
10. Take Advantage of Tax Incentives:
Tax incentives save money, which can then subsequently be channeled into the working capital
funds.
11. Use Up-to-date Financial Information:
Keep financial statements and reports current and calculate quick ratios on a periodic basis.
This will enable your company to have a clear picture of the financial position at all times and
will provide you with avenues for improvement.
Hindustan Unilever Company are forced to issue stock or take on debt when they run out of
working capital. Your business can avoid this by constantly keeping an eye on the working
capital position and finding ways to increase it through better management of the cash flow,
customers, and vendors.
72
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Weekly, Vol. 7 No. 17, pp. 842-845
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M15- M22
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75
Balance Sheet of Hindustan
Unilever ------------------- in Rs. Cr. -------------------
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 216.00 216.39 216.35 216.27 216.25
Total Share Capital 216.00 216.39 216.35 216.27 216.25
Revaluation Reserves 0.00 0.67 0.67 0.67 0.67
Reserves and Surplus 6,274.00 3,470.23 3,507.76 3,060.11 2,457.10
Total Reserves and Surplus 6,274.00 3,470.90 3,508.43 3,060.78 2,457.77
Total Shareholders’ Funds 6,490.00 3,687.29 3,724.78 3,277.05 2,674.02
NON-CURRENT LIABILITIES
Other Long Term Liabilities 574.00 218.20 170.11 278.82 476.25
Long Term Provisions 485.00 1,124.39 956.35 838.69 706.34
Total Non-Current
Liabilities 1,059.00 1,342.59 1,126.46 1,117.51 1,182.59
CURRENT LIABILITIES
Trade Payables 6,006.00 5,497.89 5,288.90 5,793.89 5,167.69
Other Current Liabilities 809.00 853.79 908.05 852.94 616.15
Short Term Provisions 387.00 2,785.47 2,585.87 1,957.01 1,872.02
Total Current Liabilities 7,202.00 9,137.15 8,782.82 8,603.84 7,655.86
Total Capital And Liabilities 14,751.00 14,167.03 13,634.06 12,998.40 11,512.47
ASSETS
NON-CURRENT ASSETS
Tangible Assets 3,654.00 2,902.73 2,435.50 2,397.94 2,256.79
Intangible Assets 370.00 12.00 22.03 24.12 36.11
Capital Work-In-Progress 203.00 385.97 479.01 312.08 205.32
Intangible Assets Under
Development 0.00 0.00 0.00 7.70 10.32
Fixed Assets 4,227.00 3,300.70 2,936.54 2,741.84 2,508.54
Non-Current Investments 260.00 669.03 654.11 636.17 548.03
Deferred Tax Assets [Net] 160.00 230.86 195.96 161.73 204.78
Long Term Loans And
Advances 623.00 581.30 583.46 605.51 384.29
Other Non-Current Assets 70.00 0.17 0.44 0.68 296.84
Total Non-Current Assets 5,340.00 4,782.06 4,370.51 4,145.93 3,942.48
CURRENT ASSETS
Current Investments 3,519.00 2,297.52 2,623.82 2,457.95 1,782.63
Inventories 2,362.00 2,528.36 2,602.68 2,747.53 2,526.99
Trade Receivables 928.00 2,758.82 782.94 816.43 833.48
Cash And Cash Equivalents 1,671.00 1,064.52 2,537.56 2,220.97 1,707.89
76
Short Term Loans And
Advances 306.00 673.29 657.27 537.68 648.26
OtherCurrentAssets 625.00 62.46 59.28 71.91 70.74
Total Current Assets 9,411.00 9,384.97 9,263.55 8,852.47 7,569.99
Total Assets 14,751.00 14,167.03 13,634.06 12,998.40 11,512.47
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 1,233.00 1,167.45 1,072.71 991.20 894.21
CIF VALUE OF IMPORTS
Raw Materials 0.00 795.65 827.62 735.98 717.96
Stores, Spares And Loose
Tools 0.00 13.05 23.93 44.54 22.54
Capital Goods 0.00 140.28 81.88 82.11 75.92
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign
Currency 1,214.00 1,084.34 949.61 788.93 656.46
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In
Foreign Currency - 2,254.34 1,963.46 1,480.84 1,872.50
EARNINGS IN FOREIGN
EXCHANGE
FOB Value Of Goods 541.00 78.82 81.07 91.21 147.96
Other Earnings - 479.76 492.36 456.70 506.84
BONUS DETAILS
Bonus Equity Share Capital 131.69 131.69 131.69 131.69 131.69
NON-CURRENT INVESTMENTS
Non-Current Investments
Quoted Market Value - 0.02 0.02 110.11 123.31
Non-Current Investments
Unquoted Book Value 254.00 669.02 654.11 605.05 515.87
CURRENT INVESTMENTS
Current Investments Quoted
Market Value 1,459.00 1,264.17 1,792.03 2,482.54 1,859.47
Current Investments Unquoted
Book Value 2,066.00 1,059.30 856.33 - -