Reserves in Balance sheet

Fundamental Analysis
1

what items can be added to reserves in balance sheet? As i can see the sudden increase of reserves of HUL for FY 2021, what items did they add there?

2

Hi @Akho

Reserves are mostly categorized into 3 types:

  • Revenue reserves. - basically created out of profits and regular operations

  • Capital reserve - for long term projects

  • Specific type reserve - like amalgamation adjustment etc

Will check the HUL balance sheet and let you know what are the changes visible in FY21

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3

One of the item which goes into reserve is Retained Earnings. In case of HUL there has been a jump from 7,998 (mar 2020) to 47,439 (mar 2021)

I remember @Akash_Shah telling me that it was due to Horlicks being taken over from GSK to HUL.

@Akash_Shah - please advise if this is correct.

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4

Yup, that is correct