Ashutosh Dash

HUL Annual Report

 Income

statement has two parts

Dividends
Transfer

EPS

Interim & Final

to reserve before EPS calculation

Basic & Dilutive

Classification

of Equity Capital

Classification

of Reserves

Buy

back and ESOPs

 On

proposal create a provision

Dividend (Dr) Proposed Dividend (Cr)

On

declaration convert into actual liability

Proposed Dividend (Dr) Dividend Payable (Cr)

Record

on the date of payment

Dividend Payable (Dr) Cash (Cr)

Provision for depreciation as per section 205(2), is

a precedent condition

Companies (Transfer of Profits to Reserves) Rules,

1975
- Dividend 10 -12.5% Transfer 2.5%
- Dividend 12.5 -15% Transfer 5%
- Dividend 15-20% Transfer 7.5%
- Dividend 20% Transfer 10%

 EPS

= Earnings/Weighted average no of shares

Adjust
EPS

Earnings While calculating Diluted EPS

Illustration