common size balance sheet of HUL.

LTD & ITC

particulars HUL
31/03/2018 %
EQUITIES AND LIABILITIES
Equity share capital 216 1.25954866172955
other equity 6859 39.9965012537174
TOTAL EQUITIES 7075 41.256049915447
LIABILITIES
NON- CURRENT LIABILITIES
FINACIAL LIABILITIES
other financial liabilities 115 0.670593037494898
provisions 772 4.50172021692227
non-current tax liabilities(net) 384 2.23919762085253
other non-current tax liabilities 167 0.973817715318678
TOTAL NON-CURRENT LIABILITIES 1438 8.38532859058837
CUURENT LIABILITIES
FINACIAL LIABILITIES
outstanding dues of MSE 0 0
outstanding dues of creditors 7013 40.8945127995801
other financial liabilities 203 1.1837424922736
other current liabilities 769 4.48422648550936
current tax liability NIL NIL
provisions 651 3.79613971660155
TOTAL CURRENT LIABILITIES 8636 50.3586214939647
TOTAL EQUITY AND LIABILITIES 17149 100
ASSETS
NON-CURRENT ASSETS
FIXED ASSETS
PROPERTY,PLANT AND EQUIPMENT 3776 22.0187766050499
CAPITAL WORK-IN-PROGRESS 430 2.50743483585049
GOODWILL 0 0
OTHER INTANGIBLE ASSETS 366 2.13423523237507
TOTAL FIXED ASSETS 4572 26.6604466732754
FINANCIAL ASSETS
INVESTMENTS 256 1.49279841390169
LOANS 404 2.3558224969386
OTHER FINANCIAL ASSETS 6 0.034987462825821
NON-CURRENT TAX ASSETS(NET) 439 2.55991603008922
DEFERRED TAX ASSETS 255 1.48696717009738
OTHER NON- CURRENT ASSETS 78 0.45483701673567
TOTAL FINANCIAL ASSETS 1438 8.38532859058837
CURRENT ASSETS
INVENTORIES 2359 13.7559041343519
FINANCIAL ASSETS
INVESTMENTS 2855 16.6482010612864
TRADE RECEIVABLES 1147 6.68843664353607
CASH AND CASH EQUIVALANTS 573 3.34130269986588
BANK BALANCES OTHER THAN CASH EQUIVALENTS 2800 16.3274826520497
OTHER FINANCIAL ASSETS 829 4.83410111376757
OTHER CURRENT ASSETS 560 3.26549653040994
TOTAL CURRENT ASSETS 11123 64.8609248352674
ASSETS HELD FOR SALE 16 0.093299900868855
TOTAL ASSETS 17149 100

INTREPRETATION:
A) An analysis of pattern of financing of both the companies shows that ITC.LTD is tradi
own funds as is shown by balance sheet. Out of total investments, 82% in 2017-18 and
outsiders’ funds account only for 18% in 2017-18 and 17% in 2018-19,where as HUL.LT
upon outsiders funds. Out of total investments, 41% in 2017-18 and 43% in 2018-19 of
account for 59% in 2017-18 and 57% in 2018-19.
companies have adequate working capital as current assets are more than current liab
liabilities account only 14% in 2017-19 while current assets 39% in 2017-18 & 42% in 20
18 and 47% in 2018-19 while current assets are 65% in 2017-18 & 64% in 2018-19.
companies used long-term sources to invest in fixed assets so this improves liquidity po
e balance sheet of HUL.LTD & ITC LTD
HUL ITC
31/03/2019 % 31/03/2018 % 31/03/2019 %

216 1.20906801007557 1220.43 1.95640329 1225.86 1.756299

7443 41.6624685138539 50179.64 80.4401831 56723.93 81.2688
7659 42.8715365239295 51400.07 82.3965864 57949.79 83.0251

173 0.96837391547719 46.49 0.07452553 49.79 0.071335

1049 5.87181640078366 121.91 0.19542712 132.64 0.190034
444 2.48530646515533 1917.94 3.07454268 2044.14 2.928655
187 1.04673943464875 38.3 0.06139659 NIL NIL
1853 10.3722362160649 2124.64 3.40589193 2226.57 3.190023

0 0 29.43 0.04717759 54.32 0.077825

7070 39.5745871816401 3352.85 5.3747669 3313.96 4.747935
276 1.54492023509656 778.3 1.24764934 972.94 1.393938
506 2.83235376434369 4656.78 7.46502438 4910.4 7.035167
NIL NIL NIL NIL 344.7 0.493854
501 2.80436607892527 39.24 0.06290346 25.24 0.036162
8353 46.7562272600056 8856.6 14.1975217 9621.56 13.78488
17865 100 62381.31 100 69797.92 100

3907 21.8695773859502 15120 24.238029 17945.65 25.71087

373 2.08788133221383 5016.85 8.04223252 3391.47 4.858984
36 0.201511335012594 445.99 0.7149417 540.75 0.774737
400 2.23901483347327 8.73 0.01399458 9.89 0.014169
4716 26.3979848866499 20591.57 33.0091978 21887.76 31.35876

256 1.43296949342289 13493.77 21.6311103 14071.45 20.16027

396 2.21662468513854 7.4 0.01186253 6.21 0.008897
11 0.061572907920515 1741.28 2.79134888 2380.49 3.410546
619 3.46487545479989 18.66 0.02991281 NIL NIL
339 1.8975650713686 NIL NIL NIL NIL
154 0.86202071088721 2025.63 3.24717451 1883.05 2.69786
1775 9.93562832353764 17286.74 27.7114091 18341.2 26.27757

2422 13.5572348166807 7237.15 11.6014717 7587.24 10.8703

2693 15.0741673663588 9903.45 15.8756685 12506.55 17.91823

 1673 9.36467954100196 2357.01 3.77839132 3646.22 5.223967
575 3.21858382311783 96.03 0.15394034 162.71 0.233116
3113 17.4251329415057 2498.85 4.00576711 3606.02 5.166372
542 3.03386509935628 1152.1 1.84686727 1365.31 1.95609
352 1.97033305345648 1258.41 2.01728691 694.91 0.995603
11370 63.6439966414778 24503 39.2793931 29568.96 42.36367
4 0.022390148334733 NIL NIL NIL NIL
17865 100 62381.31 100 69797.92 100
AMOUNT IN CRORES

ws that ITC.LTD is traditionally financed as company has depended more on its

ts, 82% in 2017-18 and 83% in 2018-19 of the funds are proprietor’s funds and
18-19,where as HUL.LTD is modernly financed as company has depended more
and 43% in 2018-19 of the funds are only proprietor’s funds and outsiders’ funds
B) both the
more than current liabilities. ITC.LTD has more working capital as it's current
in 2017-18 & 42% in 2018-19.where as HUL.ltd current liabilities are 50% in 2017-
& 64% in 2018-19. c) both the
is improves liquidity position of the companies.