Summer Project IDBI

8/12/2019 Summer Project IDBI

1/84

Page | 1Srei Infrastructure Finance Limited

A Project Report on

Assessing potential for Indo-European trade and

developing tailor-made strategies to ensure bank

achieves highest mindshare and wallet-share

Submitted in partial fulfillment of the requirements for the

award of MASTERS OF MANAGEMENT STUDIES

(M.M.S)

AT

SUBMITTED BY

Name: Ratul Ghosh

Roll No: M-13-12

Batch: MMS 20132015

IES Management College and Research Centre

Bandra (W), Mumbai


2/84


Students Declaration

I hereby declare that this report, submitted in partial fulfillment of the requirement for the award

for the Master of Management Studies, to IES Management College and Research Centre is

my original work and not used anywhere for award of any degree or diploma or fellowship or for

similar titles or prizes.

I further certify that without any objection or condition subject to the permission of the company

where I did my summer project, I grant the rights to IES Management College and Research

Centre to publish any part of the project if they deem fit in journals/Magazines and newspapers

etc without my permission.

Place : Mumbai

Date : ---------------------------------

Signature

Name : Ratul Ghosh

Class : MMS, Sem- III

Roll No: M-13-12


3/84


Certificate from the company

This is to certify that the dissertation submitted in partial fulfillment for the award of

Master of Management Studiesof IES Management College and Research Centre is a

result of the bonafide research work carried out by Mr. Ratul Ghosh under my

supervision and guidance. No part of this report has been submitted for award of any

other degree, diploma, fellowship or other similar titles or prizes. The work has also not

been published in any journals/Magazines.

Date: Industry guide

Signature of the Industry Guide: ______________

Name of Industry Guide: ____________________

Company : _______________________

Place: Mumbai Designation : _______________________


4/84


Certificate from the Faculty Guide

This is to certify that the dissertation submitted in partial fulfillment for the award of

Master of Management Studiesof IES Management College and Research Centre is a

result of the bonafide research work carried out by Mr. Ratul Ghosh under my

supervision and guidance. No part of this report has been submitted for award of any

other degree, diploma, fellowship or other similar titles or prizes. The work has also not

been published in any journals/Magazines.

Date: Faculty guide

Signature of the Faculty Guide: ______________

Name of Faculty Guide: ____________________

Place: Mumbai

IES Management College and Research Centre


5/84


Acknowledgements

It is with a sage sense of gratitude that I acknowledge the efforts of all well-wishers who have insome way or another contributed towards the success and completion of this summer internship

project.

This report documents the work done during the summer internship at SREI Infrastructure

Finance Limited under the supervision of my mentor, Mr. Nalin Kumar, President,

International Strategies and Alliances, who was kind enough to give me an opportunity to

learn how to set up a bank in India. I sincerely thank him for his valuable suggestions,

motivation and encouragement.

I express my sage sense of gratitude and indebtedness to Dr. Minu Mehta, my mentor, from the

bottom of my heart, for her unprecedented support and faith in me.

I sincerely express my appreciation to my project guide Prof. Svetlana Tatuskar for her

valuable guidance and intellectual suggestions during this project.

I have tried my best to keep report simple yet technically correct.

-Ratul Ghosh


6/84


Table of Contents

Executive Summary07

Objectives11

Analysis & Findings 23

Conclusions & Recommendations.. 54

Annexures ... 58

References & Bibliography. 83


7/84


Chapter- 1

Executive Summary

INTRODUCTION TO THE INDUSTRY

India is one of the top 10economies globally, with vast potential for the banking sector to grow.

The last decade witnessed a tremendous upsurge in transactions through ATMs, and Internet and

mobile banking. In 2014, the countrys Rs 81 trillion(US$ 1.34 trillion) banking industry is set

for a greater change. Two new banks have already received licences from the government.

Furthermore, the Reserve Bank of Indias (RBI) new norms will provide incentives to banks to

spot potential bad loans and take corrective steps that will curb the practices of rogue borrowers.

The Indian governments role in expanding the banking industry has been significant. Through

the Financial Inclusion Plan (FY 1013), banking connectivity in the country increased more

than three-fold to 211,234 villages in 2013 from 67,694at the beginning of the plan.

Banks are also looking at new ways to attract customers. In September, 2013, ICICI bank

leveraged the popularity of the social platform, and launched its Facebook banking service,

Pockets. The service enables customers to transfer funds and pay bills from within the website.

Market Size

The revenue of Indian banks increased four-fold from US$ 11.8billion to US$ 46.9billion during the

period 20012010. In the same period, the profit after tax increased from US$ 1.4 billion to US$ 12

billion.

In 201213, Indian banks had 170overseas branches (163 in 201112) while foreign banks had

316 branches in India (309 in 201112).

Credit to housing sector grew at a compound annual growth rate (CAGR) of 11.1 per cent

during the period FY 200813. Total banking sector credit is expected to grow at a CAGR of

18.1 per cent(in terms of INR) to touch US$ 2.4 trillion by 2017.


8/84


Recent Developments

Infrastructure Development Finance Company (IDFC) and Bandhan Financial Services Pvt Ltd have

been chosen among a field of 25 banks by the RBI to set up banks. In-principle approval has been

given to the banks, which are both non-banking finance companies. While Mumbai-based IDFC is

categorized as an infrastructure finance company, Kolkata-based Bandhan is a microfinance

establishment.

Government Initiatives

The RBI has issued extra guidelines for banks giving gold metal loans (GMLs). To safeguard against

fraud, the central bank has asked lenders to check the credit worthiness of borrowers; collateral

securities against the loan; and trade cycle of the manufacturing activity, before sanctioning the loans.

"Lack of proper monitoring mechanism and not ensuring end use of GML has resulted in certain

instances of frauds/misuse related to GML by certain unscrupulous jewellers," stated the RBI in a

notification.

The Cabinet Committee on Economic Affairs (CCEA) has given the green signal to a proposal to

increase foreign holding in Axis Bank from 49 per cent to 62 per cent. The move could bring in

overseas investment of nearly Rs 7,250 crore (US$ 1.20 billion) into the country. The CCEA nod is

dependent on FIIs holding capped at 49 per cent.

Road Ahead

Indias banking sector has the potential to become the fifth largest banking sect or globally by 2020 and

the third largest by 2025. The industry has witnessed discernable development, with deposits growing

at a CAGR of 21.2 per cent(in terms of INR) in the period FY 0613; in FY 13 total deposits stood at

US$ 1,274.3 billion.

Today, banks are turning their focus to servicing clients. Banks in the country, including those in the

public sector, are emphasising on enhancing their technology infrastructure, in order to improve

customer experience and gain a competitive edge. The popularity of internet and mobile banking is

higher than ever before, with Customer Relationship Management (CRM) and data warehousing

expected to drive the next wave of technology in banks. Indian banks are also progressively adopting

an integrated approach to risk management. Most banks already have in place the framework for asset

liability match, credit and derivatives risk management.


9/84


INTRODUCTION TO THE COMPANY

The Industrial Development Bank of India (IDBI)is one of Indias leading public sector banks and

4th largest Bank in overall rating. RBI categorized IDBI as an Other public sector bank. It was

established on July 1, 1964by an Act of Parliament. The main aim behind setting up of IDBI was to

provide credit and other facilities for the Indian Industry, which was still in the initial phase of growth

and development. The IDBI was established under the Act of Parliament as a wholly owned subsidiary

of the Reserve Bank of India.

Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a highly

competent and dedicated workforce and a state-of-the-art information technology platform, to structure

and deliver personalized and innovative Banking services and customized financial solutions to its

clients across various delivery channels.

IDBI has also set up an overseas branch at Dubai and has plans to open representative offices in

various other parts of the Globe, for en-cashing emerging global opportunities.

It is currently the tenth largest development bank in the world in terms of reach with- 1140 ATMs, 689

Branches, and 458 centers.

Some of the Institutions built by IDBI are the National Stock Exchange of India (NSE), The National

Securities depository Services Ltd (NSDL), The Stock Holding Corporation of India Ltd (SHCIL),

and IDBI bank, which today is owned by the government of India, though for a brief period it was a

private scheduled bank.

On 16 February 1976, the ownership of IDBI was transferred to the government of India and was

made the principal financial institution for coordinating the activities of the institutions engaged in

financing, promoting and developing industry in the country. Although Government shareholding in

the bank came down below 100% following IDBIs public issue in July 1995, the former continues to

be the major shareholder.


10/84


INTRODUCTION TO THE PROJECT

Project Title: Assessment of working capital financing-MPBF Method

The project aims to do the following

Paint sector Analysis

Financial Analysis of Asian Paints

Assessment of working capital- MPBF Method

Credit Monitoring Arrangement Analysis

Observations on CMA analysis

Recommendations to Bank and the Company

Report Writing


11/84


Chapter- 2

Objectives

To accumulate and analyze the data of paint sector. Also to understand the demand and

supply, customers and competitors, emerging trends, critical factors and the future

prospects in the paint sector industry

To accumulate the information regarding the company (Asian Paints), its products and

services. Also to know their group subsidiaries and their international operations and to

check their growth priorities.

To understand the financial position of the company with the help of their income

statement and balance sheets. Also analyzing the cash flow statements and carry out the

Ratio analysis of the company.

To make the Assessment of the Working capital financing (MPBF method) with the help

of Credit Monitoring Arrangement sheets.

To comment on the CMA sheets and making recommendations to both the company and

the Bank.

Methodology:

A secondary research was done to gather the data regarding the paint sector industry. This data is

used in structuring the industry profile.

A company (Asian Paints Ltd) is selected from the paint industry & identified as a target for

providing working capital facility.

Financial analysis is done using Comparative statement analysis, Common size analysis and

Trend analysis of Income Statement and Balance Sheet on Microsoft Excel Based on the data

gathering from various resources

Then the Assessment of working capital is done with the help of Credit Monitoring Arrangement

Sheets and the comments are made on CMA sheets

Finally Recommendation is given to the Bank and the Company on the basis of the analysis


12/84


Understanding Working Capital Financing

Introduction

For running an industry or a concern, two types of capital are required namely fixed capital and

working capital. Working capital is the funds invested in current assets and is needed for meeting

day to day expenses.

Working Capital refers to that part of the firms capital, which is required for financing short

term or current assets such as debtors, inventory and cash & marketable securities.

Funds thus invested in current assets keep revolving fast and are constantly converted into cash

and this cash flow out again in exchange for other current assets

Working Capital is also known as revolving or circulating capital or Short-term capital

Current Assets represent gross working capital. The excess of Current Assets over CurrentLiabilities is Net Working Capital

Working capital is the cash needed to pay for the day to day operations of the business.

In other words, working capital is needed by the business to

Pay suppliers and other creditors (for raw material purchases)

Pay employees (salary and wages)

Financing the gap between the supply of goods and the receipt of payment thereafter

(trade credit).

Thus, Working Capital Finance is the fund required to meet the cost involved during the working

capital cycle or operating cycle.

Operating Cycle/Working Capital Cycle

Operating cycle is the period involved from the time raw materials are purchased to the time theyare converted into finished goods and the same are finally sold and realized. The need for current

assets arises because of operating cycle. The operating cycle is a continuous process and

therefore the need for current assets is felt constantly. Each and every current asset is nothing but

blockage of funds. Therefore, these current assets need to be financed which is done through

Working Capital Financing.


13/84


Fixed Portion of working/Trade Cycle

Factors determining Working Capital

Nature of the industry

Demand of industry

Cash requirements

Nature of the business

Manufacturing time

Volume of sales

Terms of purchase and sales

Inventory Turnover

Business Turnover

Cash

Wages & Overheads

Work-in-Progress

Trade Creditors

Raw Material Stock

Finished Goods

Trade Debtors

Selling Expenses Sale

Taxation

Fixed Assets

Lease Payments

Loan Creditors

Shareholders


14/84


Working Capital Cycle

Time & Money Concepts in Working Capital

Each component of working capital has 2 dimensions namely time and money, when it comes to

managing working capital.

You can get money to move faster around the cycle or reduce the amount of money tied up. Then

business will generate more cash or it will need to borrow less money to fund working capital.

As a consequence, you could reduce the cost of bank interest or you will have additional free

money available to support additional sales growth or investment.

Similarly, if you can negotiate improved terms with suppliers you can effectively create free

finance to help fund future sales.

Cash

RM

WIP

FG

Sales

Debtors


15/84


Types of Working Capital

Methods of Assessment of Working Capital

1. Turnover Method

Mainly used for small trading companies

Not appropriate for manufacturing and big trading companies

2. MPBF Method (Maximum Permissible Banking Finance)

This method is mainly used by the bank for assessment of working capital finance

3. Cash Budget Method

Mainly used for service sector companies

Cash inflowCash outflow= Bank finance in form of working capital

Types of Working Capital

Concept Basis

Gross

WorkingCapital

Net

WorkingCapital

Time Basis

Fixed Working

Capital

Reserve

Working

Capital

Regular

Working

Capital

Variable Working

Capital

Seasonal

WorkingCapital

Special

WorkingCapital


16/84


Sources of Working Capital

Main Source

OwnedFunds

BankBorrowigs

Additional

Source

ExistingCash

Reserves

Profits

Payables

New Equity

Loan FromShareholders

BankOverdraft


17/84


Credit Monitoring Arrangement Tool (CMA)

CMA data is a tool used by the bankers to assess the requirement of working capital

It is divided into six parts as follows

Form1. Particulars of existing and proposed limits

Form2. Operating System

Form3. Analysis of Balance Sheet

Form4. Working Capital Assessment

Form5. Summary of financial position

Form6. Funds Flow Statement

Form7. Cash Flow Statement

Nature of Credit Facilities

Credit Facilities can be Funds based or Non-fund based. The fund limits are those where outlay

of the Banks funds is involved. Non-fund limits are those where the bank endorses the

committee/promise made by the borrower and the bank need to meet only if the borrower fails to

honor it. Main types of the facilities under the fund based limits and the related guidelines for

granting advances against them are discussed below in brief.

Working Capital Finance is expressed in different forms based on the requirement as follows:

1. Inventory Limits (Pre-sales)

Cash Credit (CC)

Export Packing Credit (EPC)

Overdraft

Vendor Financing

2. Finance Against Receivables (Post-sales)

Book debts

Bills Purchased/Discounted/Negotiated

3. Non Fund-based Limits

Letter of credit (LC)

Trade Credit Bank Guarantee (TCBG)

Bank Guarantee (BG)

Loan Equivalent Risk (LER)


18/84


Important Financial Parameters

The Ratio analysis provides a useful mechanism by which inter-relationship of various items can

be established. It provides valuable interpretation of financial strengths and weaknesses of the

concern. Studied over a period of time, the analysis reveals trends in the financial position and

operational efficiency of the business.

A. LIQUIDITY RATIOS

B. WORKING CAPITAL MANAGEMENT


19/84


C. PROFITABILITY ANALYSIS

D.SOLVENCY RATIOS

Key Ratio Levels

Particulars Low Risk Medium risk High Risk

Current Ratio >1.40 1.20-1.40 2.00 2.00-3.50 3.50 2.00-3.50 10.00 4.00-10.00


20/84


Credit Rating

The credit risk of the company is broken down into risk categories as under:

1. Business Risk

2. Management Risk

3. Financial Risk

4. Industry Risk

These risks are measured on scale of 1-10 points, 10 being the highest score and results in 10

grades as under

Grade Description

AAA Investment Grade-Very strong credit quality-Highest Safety

AA+ Investment Grade-Strong Credit Quality-Highest Safety

AA Investment Grade-Strong Credit Quality-High Safety

A Investment Grade-Above Average credit quality-Adequate safety

BBB Investment Grade

BB+ Sub-Investment Grade-Week credit quality

BB Sub-Investment Grade-Near Default credit

B Sub Investment Grade-Default Credit

C Sub Investment Grade-High Risk

D Default-Credit Loss


21/84


Lending Arrangement for Working Capital Facilities


22/84


Importance of Adequate Working Capital

Every business concern should have adequate working capital to run its business operations. It

should have neither redundant or excess working capital nor inadequate or shortage of working

capital

Both excess as well as shortage of working capital situations are bad for any business. However

out of the two, inadequacy or shortage og working capital is more dangerous from the point of

view of the firm

Disadvantages of Inadequate Working Capital

Idle funds, Non-profitable business, poor ROI

Unnecessary purchasing and accumulation of inventories over required level

Excessive debtors

Defective credit policy

Higher incidence of bad debts

Cant pay short term liabilities in time

Day-to-day liquidity worsens

Economies of scale are not possible

Improper utilization of Fixed Assets resulting in decrease of ROI/ROA

When there is Overall inefficiency in the organization

Sign of potential liquidity Problems

Buildup of inventories and declining inventory turnover

Increase in debt and debt ratios

Increase in costs that cannot be passed on

Increase in accounts receivables and collection period

Decline in net working capital and daily cash flows


23/84


Chapter- 3

Analysis & Findings

Paint Sector Analysis

INDUSTRY STRUCTURE

The Indian Paint industry can be divided as the organized sector comprising of large and medium

size units and the unorganized or the small scale sector

The organized sector has a market share of 60%, valued at 23.4 bn. This is in contrast to the

55% share that the sector commanded a few years back. There are around 25 units in this

segment. The unorganized sector comprises of around 2,000 unitswith a combined market share

of around 40%. Major companies in this segment include Asian Paints, Goodlass Nerolac,

Berger Paints, Shalimar Paints, and Rajdoot Paints

High excise duties, low technology and low capital costs for production led to the incidence of a

high number of units in the small scale sector. However, since 1992 the government has been

consistently lowering duties from 40.5% in 1992 to around 16% currently. This has led to

lowering of price differential between the organized and unorganized sector. Moreover the paints

sector was also allowed to claim MODVAT credit on petro-based products, thus lowering the

excise incidence furtherThe application of paints can be broadly divided into three categories viz. decoratives,

industrial and automotive. The decorative segment is broadly divided into interior paints

(emulsions, enamels, wood finishes) and exterior paints

The industrial and automotive paint manufacturing however, is technology intensivewherein

domestic majors have tied up with select global majors like Nippon Paints, DuPont, PPG and

Kansai for technology.

The paint industry is expected to grow at 12-13%annually over the next five years from Rs 280

bn in FY13 to around Rs 500 bn by FY18. FY13 was a challenging year for the industry as a

whole due to subdued demand across key sectors and rising inflation.

The unorganised sector controls around 35% of the paint market, with the organised sector

accounting for the balance. In the unorganised segment, there are about 2,000 units having small


24/84


and medium sized paint manufacturing plants. Top organised players include Asian Paints,

Kansai Nerolac, Berger Paints and ICI

The paints sector is raw material intensive, with over 300 raw materials (50% petro-based

derivatives) involved in the manufacturing process. Since most of the raw materials are

petroleum based, the industry benefits from softening crude prices.

Indian Paint Industry

Decorative Paint (70%)

PremiumRanges

Metros &Large cities

MediumRanges

SmallCities

DistemperRanges

Sub-Urban& Rural

Areas

Industrial Paint (30%)

AutomobileSector

ConsumerDurables

Marines Paint


25/84


KEY POINTS

Supply- Supply exceeds demand in both the decorative as well as the industrial paints segments.

Industry is fragmented.

Demand-Demand for decorative paints depends on the housing sector and good monsoons.

Industrial paint demand is linked to user industries like auto, engineering and consumer durables.

Barriers to entry-Brand, distribution network, working capital efficiency and technology play a

crucial role.

Bargaining power of suppliers- Price increase constrained with the presence of the unorganised

sector for the decorative segment. Sophisticated buyers of industrial paints also limit the

bargaining power of suppliers. It is therefore that margins are better in the decorative segment.

Bargaining power of customers- High due to availability of wide choice.

Competition- In both categories, companies in the organised sector focus on brand building.

Higher pricing through product differentiation is also followed as a competitive strategy.

FINANCIAL YEAR 2013

FY13 was a mixed bag for the paint companies. While all the 3 players viz. Asian Paints, Kansai

Nerolac and Berger Paints reported a strong growth in sales, operating margins came under

severe pressure due to raw material price inflation. Top-line growth was boosted by strong

demand from the rural markets. Nonetheless, the demand environment in the industrial segment

continues to remain challenging due to hawkish interest rate environment

Performance on the margins was impacted by the rising prices of crude oil and titanium dioxide

which increased the overall expenditure, thereby impacting profitability growth. However,

companies are undertaking a gradual and calibrated price increase in order to shield margins.

Nonetheless, as a complete pass on of raw material price increase is not possible in the industrial

segment, the blended margins continue to suffer.

However, a good monsoon this year is expected to boost demand in the rural areas. A good

harvest and festival season demand can boost volumes in the second half of FY14


26/84


All the key players are in an expansion phase. Asian Paints plant in Khandala, Maharashtra has

recently got comissioned. Kansai Nerolacs capacity expansion plans at Jainpur and Bawal has

culminated. Berger Paints has also undertaken capacity expansion for its plants located in

Andhra Pradesh (AP). Further, expansion of water based plant at Rishra and Goa is also on track.

As per estimates, paint capacities are expected to go up by 50-70% in the coming 3 to 5 years

PROSPECTS

The market for paints in India is expected to grow at 1.5times to2times GDP in the next five

years. With GDP growth expected to be between 5-6%levels, the top three players are likely to

clock above industry growth rates in the future, considering they have a strong brand and good

reach

Decorative paints segment is expected to witness higher growth going forward. The fiscal

incentives given by the government to the housing sector have immensely benefited the housing

sector. This will benefit key players in the long term

Although the demand for industrial paints is lukewarm it is expected to increase going forward.

This is on account of increasing investments in infrastructure. Domestic and global auto majors

have long term plans for the Indian market, which augur well for automotive paint manufacturers

like Kansai Nerolac and Asian-PPG. Increased industrial paint demand, especially powder

coatings and high performance coatings will also propel topline growth of paint majors in the

medium term

If the new capacities do not get utilized well, companies may face margin pressures in the near

term


27/84


ABOUT COMPANY

Asian Paints Ltd. is Indias largest and Asias 3 rdlargest paint company. It is the clear market

leader with about 55% market share in the paints industry. It sells decorative, industrial and

automotive paints and is the market leader in the decorative paints segment. The company

operates in 17 countries and has 24 paint manufacturing facilities in the world servicing

consumers in over 65 countries. Besides Asian Paints, the group operates around the world

through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and

Taubmans, among others. It derives ~11% of its revenues from international operations.

MAJOR PRODUCTS & SERVICES

Asian Paints manufactures and markets industrial and decorative coatings. Along with that the

company also provides home painting services and solutions. The company's key products and

brands include the following:

Decorative paints: Interior wall paints, Exterior wall paints, Wood surface paints, Metals

surface paints.

Industrial coatings: Protective coatings, Floor coatings, Road markings.

Ancillaries: Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.

Asian paints made a foray in automotive paints in the year 1997 with a joint venture with PPG

Industries. The joint venture is called PPG Asian paints.[7] The company manufactures body

coatings and plastic coatings.

FORBES LISTING

Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the

World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian

Paints is the only paint company in the world to receive this recognition. One of the country's

leading business magazine "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best

Employer.It has been recognised by "Economic Times" as well. Forbes has also ranked Asian

Paints among the Best under a companies in Asia in 2005, 06 and 07.
http://en.wikipedia.org/wiki/PPG_Industrieshttp://en.wikipedia.org/wiki/PPG_Industrieshttp://en.wikipedia.org/wiki/Asian_Paints#cite_note-7http://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Asian_Paints#cite_note-7http://en.wikipedia.org/wiki/PPG_Industrieshttp://en.wikipedia.org/wiki/PPG_Industries


28/84


GENESIS OF ASIAN PAINTS

1942-1965

1.Company started itsbusiness

2.The mischevous kidwas born

3.Name was Asian Paints

4.The company expandedits products range,developed its owntechnology, set up adistribution network

penetrating in smaller

towns and ploughed backa large part of earningsinto creation of newfacilities.

1967-1985

1.India's leading paint

2.Converted into a

public limited company3.Entered into acollaboration agreement

4.A majormodernisation

programme wasundertaken to streamlinethe paint productionfacilities by improvingthe layout of machines,addition to balancingequipment andreplacement of oldmachineryfacilities aswell.

1990-2014

1.Spreads its boundary

2.Completed 70 years

3.5th largest decorativepaint company in theworld

4.Admired companies inIndia

5.Market leader of paintindustry


29/84


INTERNATIONAL OPERATIONS

Asian Paints operates in 17 countries across the world. It has manufacturing facilities in each of

these countries and is the largest paint company in eleven of these markets. Asian Paints operates

in five regions across the world viz. South Asia, Southeast Asia, South Pacific, Middle East andCaribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB

Paints, Apco Coatings and Taubmans. The countries that Asian Paints has presence are as

follows:

1.Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka).

2.SCIB Paints in Egypt.

3.Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and

Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago).

4.Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu).

5.Taubmans in South Pacific (Fiji and Samoa).

The company has a dedicated Group R&D Centre in India and has been one of the pioneering

companies in India for effectively harnessing Information Technology solutions to maximize

efficiency in operations

GROUP SUBSIDIARIES

1) Apco Coatings is a subsidiary of Asian Paints in the South Pacific islands. Asian Paints

operates in Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco

Coatings.APCO COATINGS

2) Asian Paints Industrial Coatings Limited has been set up

3) In 1994, Berger units were brought under the single umbrella of the holding company 'Berger

International Limited (BIL)' with headquarters in Singapore, which was also listed on the

Singapore stock exchange. In November 2002, BIL became a part of the Asian Paints Group.

Incidentally, Berger Paints Jamaica Limited, which is listed on the Jamaican stock exchange, is

amongst the top ten companies in the country in terms of market capitalisation. In the Middle

East too Berger is a well-respected brand. It is the largest paint company in Bahrain. Using its
http://www.apcocoatings.com/http://www.apcocoatings.com/


30/84


state-of-the-art manufacturing facilities there, and in United Arab Emirates, it exps of the

Company at its meeting held on 8 August 2013 have approved the infusion of Rs 997.8 million

for 51% stake in Sleek International Private Limited (SIPL). Post the infusion, the company

would hold 51% stake in SIPL, said statement from Asian Paints.

Growth Priorities

LeadershipRegions

Caribbean

Jamaica,

Trinidad &Barbados

SouthPacific

South PacificIsland

Growth Regions

MiddleEast

UAE

SouthAsia

Nepal,

Sri lanka &Bangladesh

South EastAsia

Singapore,Malaysia &

China


31/84


SWOT ANALYSIS

STRENGTHS

1.The largest paint company in India andthird largest company in Asia

2.They have over 50% of market share andare clear leaders decorative paints and arestrong competitors to Kansai Nerolac to beleaders in Industrial paints and coatings.

3.They operate in 17 countries and have 24manufacturing facilities providing service to65 countries all over the world.

4.Most renowned brand in Indian PaintIndustry & its strong customer focus and

innovative-spirit has made it marke

5.They have maintained their brand nameand increased awareness by unique ways ofadvertising and roping in celebrities like SaifAli Khan.t leader since 1968.

6.The company has strong financials.

WEAKNESS

1. Limited market share in industrial paintssegment with Kansai Nerolac andAkzonobel giving stiff competition.

2.In decorative paints Industry Customertastes and perceptions change very fast andproducts may become obsolete with changein trends, hence production planning andinventory problem.

3.Seasonal demand and hence in off seasonthere can be cash flow problems

4.International presence restricted to small

pockets

OPPORTUNITIES

1. Big and international standard paintcompany it should look for moreopportunities abroad

2. There is a good scope for growthespecially in industrial paints category

3. Needs to have more focus on Automobile

industry in industrial paints segment4. Competitors are going for Hi-tech processand Asian paints with good financial andintellectual capital can go for hi-tech.

THREATS

1.Growth prone to slowdown effects2.Stringent Government rules andregulations regarding the quality of productsand manufacturing facilities as Environmentpolicies are given more emphasis3.Raw material scarcity and volatlility in

prices.

SWOT


32/84


IMPORTANT FINDINGS

A.Balance Sheet

Networth

The networth of thecompany is 3384 Crwhich increased by 23%from the last year

It is 21% of the totalliabilities

The networth shows anincreasing trend in the last5 years

Total Debt

Out of total debt 24% issecured whereas 76% isunsecured

Secured loan increasedfrom 42.34 Cr to 58.53 Crcompared to last year

Total debt is 6.28% of thetotal liabilities

Net Block/Fixed Assets

The net block of thecomopany increased from1300 Cr to 24410 Cr ie87% increase compared tolast year

The net block consist of64% of the total assets

Investments

There has been decreasein the investment by 20%compared to last year

Investments amounts toaround 8% of the totalassets

Current Assets

The total Current Assetsincreased from 3426 Cr to4008 Cr ie by 21%compared to last year

The Current Asstesamount to 28% of thetotal Current Assets

The total Current Assetsshowed an increasingtrend in the last 5 year

Current Liabilities

The total CurrentLiabilities increased by 9% from 2262 Cr to 2466Cr compared to last year

The Current Liabiltiesamounts to 65% of thetotal liabilities


33/84


B.PROFIT & LOSS A/C

Provisions

The provision increasedfrom 444 Cr to 539 Crcompared to last year

The provision amounts to14% of the totallaibilities

The provision shows anincreasing trend in the last5 years

Contingent Liabilities

The Contingent liabilitiesdecreased from 472 Cr to192 Cr

The Contingent liabilitiesshows a decreasing trendin the last 5 years

Reserves

The Reserves increasedfrom 2652 Cr to 3288 Cras comprared to last year

The Reserves shows anincreasing trend in the last5 years

Total Income

The total incomeincreased from 10227 Crto 11736 Cr ie by 14.20%compared to last year

The total income hasshown an increasing trendin the last 5 years

Total Expenses

The total expensesincreased from 8663 Crto 9890 Cr ie by 14.15%compared to last year

The total expenses haveshown an increasingtrend in the last 5 years

Operating Profit

The operating profitincreased from 1544 Cr to1731 Cr ie by 12.13%compared to last year

The operating profit is15.16% of the total sales

The operating profitshows an increasing trendin the last 5 years


34/84


C.CASH FLOW

Profit Before Tax

The PBT increased from1456 Cr to 1658 Cr ie by13.88% compared to lastyear

The PBT is 14.51% ofthe net sales

The PBT has shown anincreasing trend in the last5 years

Net Profit

The Net profit incresedfrom 1020 Cr to 1159 Crie by 13.61% compared tolast year

The net profit is 10.15%of the total sales

The net profit shows anincreasing trend in the last5 years

Earning per Share

The EPS increased fromRs106.4 to Rs120.88compared to last year

The EPS has shown anincreasing trend in the last5 year

Net Cash from Operating

Activities

The NCFO increasedfrom 753 Cr to 1081 Cr ascompared to last year

The NCFO has shown anincreasing trend in the last5 years

Opening Cash and cash

Equivalents

The opening cash andcash equivalentsdecreased from 509.23Cr to 500.97 Cr

The Opening cash andcash equivalents haveshown an increasing trendin the last 5 years

Closing Cash and Cash

Equivalents

The closing cash and cashequivalents increasedfrom 500.97 Cr to 566.87Cr as compared to lastyear

The closing cash and cashequivalents have shown afluctuating trend in thelast 5 years


35/84


D.RATIO ANALYSIS

Net Profit Margin Ratio

The Net profit margindecreased from 9.81% to9.65 % compared to lastyear

The net profit margin hasshown a fluctuating trendin the last 5 years

Return on CapitalEmployed

The ROCE has decreasedfrom 48.42% to 46.71%compared to last year

The ROCE has shown adecreasing trend in thelast 5 years

Return on Net worth

The Return on net worthhas decreased from35.97% to 32.91%compared to last year

The return on net worthhas shown a decreasingtrend in the last 5 years

Current Ratio

The current ratio hasincreased from 1.16 to1.24 as compared to lastyear

The current ratio hasshown an increasing trendin the last 5 years

Quick Ratio

The quick ratio hasincreased from 0.66 to0.72 as compared to lastyear

The quick ratio has showna fluctuating trend in thelast 5 years

Debt Equity Ratio

The Debt Equity ratio hasdecreased from 0.12 to0.07 as compared to lastyear

The debt equity ratio hasshown a decreasing trendin the last 5 years


36/84


Inventory Turnover Ratio

The inventory turnoverratio decreased from 7.1to 6.88 compared to lastyear

The inventory turnoverratio shows a decreasingtrend in the last 5 years

Debtors Turnover Ratio

The Debtors turnoverratio decreased from14.62 to 12.96 comparedto last year

The Debtors turnoverratio shows a flucuatingtrend in the last 5 years

Number of days in

working Capital The number of days in

working capital increasedfrom 25 days to 31 dayscompared to last year

The number of days inworking capital hasshown an increasing trendin last 3 years


37/84


GRPHICAL ANALYSIS

A) BALANCE SHEET

Particulars Mar '09 Mar '10 Mar '11 Mar '12 Mar '13

Networth1,203.17 1,709.98 2,187.42 2,748.50 3,384.29


Total Debt 299.3 226.84 233.88 335.85 237.66

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

Mar '09 Mar '10 Mar '11 Mar '12 Mar '13

Networth

Networth

0

50

100

150

200250

300

350


Total Debt

Total Debt


38/84


ParticularsMar '09 Mar '10 Mar '11 Mar '12 Mar '13

Total Current

Assets 1,547.71 1,591.29 1,994.24 2,937.79 3,563.15


Total CurrentLiabilities 1,105.72 1,469.08 1,759.27 2,262.21 2,466.85

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00


Total Current Assets

Total Current Assets

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00


Total Current Liabilities

Total Current Liabilities


39/84



Fixed Assets863.58 909.55 1,309.87 1,300.55 2,440.97

ParticularsMar '09 Mar '10

Mar

'11Mar '12 Mar '13

Investments78.4 624.11 921.95 354.74 280.68

0

500

1000

1500

2000

2500


Fixed Assets

Fixed Assets

0

200

400

600

800

1000


Investments

Investments


40/84



Reserves1,107.25 1,614.06 2,091.50 2,652.58 3,288.37

ParticularsMar '09 Mar '10

Mar

'11Mar '12 Mar '13

Provisions180.99 315.04 336.53 444.9 539.39

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00


Reserves

Reserves

0

100

200

300

400

500

600


Provisions

Provisions


41/84


B) PROFIT & LOSS A/C


Net Sales5,739.65 6,944.30 7,998.01 10,002.10 11,427.35


Total Income 5,749.05 7,206.23 8,246.96 10,277.18 11,736.56

Total Expenses 5,026.63 5,830.95 6,849.20 8,663.82 9,890.10

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00


Net Sales

Net Sales

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00


Total Income

Total Expenses


42/84


ParticularsMar

'09Mar '10 Mar '11 Mar '12 Mar '13

Operating Profit 700.33 1,238.25 1,318.14 1,544.53 1,731.94

PBT 622.5 1,262.63 1,265.00 1,456.04 1,658.21

PAT 419.48 883.91 881.35 1,020.581,159.52

0

200

400

600

800

1000

1200

1400

1600

1800

2000


Operating Profit

PBT

PAT


43/84


ParticularsMar '13

Expenses

Distribution

Raw Materials 6,627.32 67.0

Power & Fuel Cost 110.28 1.1

Employee Cost 623.56 6.3

Other Manufacturing Expenses 19.59 0.2

Selling and Admin Expenses 501.74 5.1

Miscellaneous Expenses 2,007.61 20.3

Total Expenses

9,890.10 100

67.0

1.1

6.30.2

5.1

20.3

Expenses Distribution

Raw Materials

Power & Fuel Cost

Employee Cost

Other Manufacturing Expenses

Selling and Admin Expenses

Miscellaneous Expenses


44/84


ParticularsMar '09

Mar

'10Mar '11 Mar '12 Mar '13

Current Ratio 1.09 0.94 1.01 1.16 1.24

Current Ratio 0.74 0.49 0.47 0.66 0.72

ParticularsMar '09

Mar

'10Mar '11 Mar '12 Mar '13

Debt Equity

Ratio0.25 0.13 0.11 0.12 0.07

0

0.2

0.4

0.6

0.8

1

1.2

1.4


Current Ratio

Current Ratio

0

0.05

0.1

0.15

0.2

0.25


Debt Equity Ratio


45/84


ParticularsMar '09

Mar

'10Mar '11 Mar '12 Mar '13

Inventory

Turnover Ratio8.67 8.09 6.96 7.1 6.88


Debtors TurnoverRatio 11.12 12.46 14.18 14.62 12.96

0

1

2

34

5

6

7

8

9




0

2

4

68

10

12

14

16





46/84


C) PEER COMPARISON

Particulars

Asian

Paints

Berger

Paints

Kansai

Nerolac

Akzo

Nobel

Shalimar

Paints

Total Assets 3,069.02 1,287.45 1,346.46 1,105.30 163.12

Particulars

Asian

Paints

Berger

Paints

Kansai

Nerolac

Akzo

Nobel

Shalimar

Paints

Sales Turnover 10,418.78 3,024.21 3,154.40 2,231.98 530.18

0.00

500.00

1,000.001,500.00

2,000.00

2,500.00

3,000.00

3,500.00

Asian Paints Berger

Paints

Kansai

Nerolac

Akzo Nobel Shalimar

Paints

Total Assets

Total Assets

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

Asian Paints Berger

Paints

Kansai

Nerolac

Akzo Nobel Shalimar

Paints

SalesTurnover

Slaes Turnover
http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31


47/84


Particulars

Asian

Paints

Berger

Paints

Kansai

Nerolac

Akzo

Nobel

Shalimar

Paints

Net Profit1,169.06 209.8 206.6 218.83 11.02

Particulars

Asian

Paints

Berger

Paints

Kansai

Nerolac

Akzo

Nobel

Shalimar

Paints

Last Price 536.5 237.3 1,243.00 821.85 80.7

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Asian Paints Berger Paints Kansai Nerolac Akzo Nobel Shalimar

Paints

Net Profit

Net Profit

0

200

400

600

800

1000

1200

1400

Asian Paints Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints

Last Price

Last Price
http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31


48/84


Particulars

Market Capitalization

(Cr)

Asian Paints51,460.96

Berger Paints8,221.88

Kansai Nerolac6,698.77

Akzo Nobel3,834.78

Shalimar Paints152.75

Total Mkt Cap70,369.14

51,460.96

8,221.88

6,698.77

3,834.78

152.75

Market Capitalization (Cr)

Asian Paints

Berger Paints

Kansai Nerolac

Akzo Nobel

Shalimar Paints
http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/shalimarpaints/SP13http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/akzonobelindia/ICIhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/kansainerolacpaints/KNPhttp://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/BPI02http://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/asianpaints/AP31


49/84


INTERPRETATION OF FINANCIAL ANALYSIS

The profitability of the company is

quite high and is increasing year byyear which is a good sign for thecompanys growth

The networth of the company isincreasing every year whereas the debt isdecreasing every year, this shows thatthe company is having a more

proportion of own funds than theborrowed funds in its share capital

The current ratio of the company is 1.24,this shows that the short term solvency

position of the company is quite good

The working capital of the company isquite good, this shows that the companyhas good liquidity to carry out the day today operations in the company

The company makes provision of around14% of the total liabilities, this showsthat the company has good liquidity incase of any financial emergency


50/84


CORPORATE HIGHLIGHTS FOR FY 2013-2014

Ceased manufacturing activity at the Bhandup plant with effectfrom 5thMay 2014

Impact of about Rs.28 Cr in FY 2014-2015 for total VolunataryRetirement/Seperation scheme/Relocation Compensation

Agreement signed in April 2014 with Kadisco Chemical industryPLC, Ethiopia to acquire either directly or through subsidiaries51% stake

Agreement signed in May 2014 with ESS Bathroom Products PvtLtd to acquire its front end sales business including brands,

network and sales infrastructure

Increased stake in BIL to 96.79% during the year

Final dividend of Rs 4.20 per equity share (420% of face value)


51/84


52/84


CREDIT RATING

Industry: Chemical

Ratings outstanding as on 21-May-2014

Instrument Category Rating Rating Outlook

Long Term CRISIL AAA Stable

Short Term CRISIL A1+

Credit rating agency, CRISIL has reaffirmed AAA rating to long-term bank facilities of Asian

Paints.

The rating agency has also reaffirmed A1+ rating to the companys short term bank facilities.

The company has received the said rating reaffirmation on the back of its leadership position in

the domestic paints sector, healthy operating margin, and robust financial risk profile,

marked byhealthy capital structure andsurplus liquidity.

However, the rating strengths are partially offset by Asian Paints susceptibility to volatility in

raw material prices.
http://latestpr%28%27asianpaintslimited_311013.html%27%29/http://latestpr%28%27asianpaintslimited_311013.html%27%29/


53/84


OBSERVATIONS OF CMA ANALYSIS

TOL/TNW

The Tangible Net worth (TNW) of the company increased from 3577.73 cr in FY 2013 to 4102.46 cr in

FY 2014. The increase in TNW was mainly due to plough back of profit.

The gearing ratio of the company has increased from level of 0.88 as on March 31, 2013 to 0.90 as

on March 31, 2014 mainly on account of increased short term bank borrowings & increase in

level of sundry creditors.

Total Outside Liabilities (TOL) of the company have increased from 3135.94 cr as on March 31, 2013

to 3706.13 cr as on March 31, 2014. The increase in TOL is mainly because of increase in the level of

sundry creditors from 1441.57 cr as on March 31, 2013 to 1745.72 cr as on March 31, 2014.

FIXED ASSETS

The net block of the company marginally decreased from 2424.89 cr as on March 31, 2013 to 2402.34

cr as on March 31, 2014 due to depreciation. The same is expected to increase further to 2501.94 cr as

on March 31, 2015.

INCOME/SALES

During FY 2014, the company has registered net sales of 13392.88 cr as against sales of 11424.87 cr in

FY 2013 which is a growth of 14.57 %.

PROFITABILITY

The company has registered PBDIT of 2890.04 cr in FY 2014 against 2541.64 cr in FY 2013

registering a growth of 21.58 %. The PBDIT margin has decreased marginally from 22.25 % in FY

2013 to 21.58 % in FY 2014.

During FY 2014, the company has registered PAT of 2217.51 cr in FY 2013 against PAT of 2075.97 cr

in FY 2013 registering a growth of 16.56 %. The PAT margin has decreased from 18.17 % in FY 2012

to 16.56 % in FY 2013. Company has explained that the dip in profit is mainly because of increase in

cost of labor, increase in finance expenses and increase in cost of import of raw materials.


54/84


Chapter- 4

Conclusions & Recommendations

Recommendations to the banks are as follows

From the above financials we can come to a conclusion that the company is a cash rich

company and has a huge net worth and is enjoying very high profit margins

The company is not taking the help of outsiders liability and is making use of its own

funds in its day to day transactions in the organization

This will make it difficult for the bank to start the business with the company by

providing fund based limits to the company

The company would rarely make use of facilities like cash credit, overdraft facility,

Export Packing credit and vendor financing

Thus the bank should go ahead with the following facilities:

A. Non-Fund based Facility

1. Letter of credit

2. Trade Credit Bank Guarantee

3. Bank Guarantee

4. Loan Equivalent Risk

B. Cash Management Services

The CMS are mainly divided into collections, payment and debt. As per clients

perspective, Collection products are aimed at pooling the customers' receivables from

multiple locations into a single pooling account, disbursement products are aimed at

providing the customer various payment options through a single window. Further,

distribution of dividend / interest / refund / redemption payments, enables outsourcing of

routine tasks.


55/84


C. Tax Payment Service

The bank may also help the company to pay various taxes like Value Added Tax (VAT),

Sales Tax, Excise and also many other types of taxes and can charge a minimal rate of

interest on it which may help to improve the profitability of the bank

D. Maintain Salary Accounts

The bank may also maintain salary accounts of the employees working in the company

and pay them a certain interest on this savings made by the people and then lend the

money at a higher rate of interest

E. Dividend Payment

The bank may help the company to make the payment of the dividend to the various

shareholders across the country

F. Asset Financing

Every year the company is investing huge amount In the purchase of fixed assets such as

plant and machinery, land and building etc. The bank can help the company by financing

these assets

G. International Transactions

Bank can facilitate foreign exchange transactions and provide trade financing. This will

help the company by mitigating the impact of currency and price fluctuations

H. Insurance Facilities

Bank can offer insurance to their large scale clients. The insurance can cover corporate

activites as well as staff and management activities

I. Asset Custody

Bank can protect their clients corporate assets. This includes setting up accounts to store

them, making regular audits to make sure that they remain intact and issuing report that

assess the assets status on annual basis


56/84


Recommendations to the company are as follows

The above financial showed that the company is financially sound company and is

making huge amount of sales turnover every year and thus earning huge amount of

profits

The company export sales is just 2% of the total gross sales. So the company should take

some measures in improving their export sales

The employee turnover in the company is huge and hence there is increase in the labour

cost every year. So steps should be taken by the company in reducing the labour turnover

The company is having huge amount of cash reserves in their account. The company

should make investment in various other schemes in order to enjoy more profits

The company must also look to do lateral expansion as they have huge amount of own

funds, but a very less amount of outsiders fund is being used by the company

The company is facing losses on FOREX and is increasing every year. Thus steps need to

be taken by the company like using facilities like hedging and factoring in order to

control these losses

The company is not investing much in the advertisement and promotional activities. So

the company must look forward to invest some amount in advertisement In order to

increase their sale

The company can also tie up with the builders and contractors and may take some large

scale projects


57/84


CONCLUSION

Every business concern should have adequate working capital to run its business operations. It

should have neither excess working capital nor inadequate of working capital.

Both excess as well as shortage of working capital situations are bad for any business. However

out of the two, inadequacy or shortage of working capital is more dangerous from the point of

view of the firm.

Any change in the working capital will have an effect on a business's cash flows. A positive

change in working capital indicates that the business has paid out cash, for example in

purchasing or converting inventory, paying creditors etc.

Hence, converting inventory, paying creditors etc will have a negative effect on the business's

cash holding.

However, a negative change in working capital indicates lower funds to pay off short term

liabilities (current liabilities), which may have bad repercussions to the future of the company.


58/84


Chapter- 5

ANNEXURES

FINANCIAL STATEMENTS

Increase Percentage

Decrease Percentage

Consolidated Balance Sheet (Rs in Crores)- Trend Analysis

Increase/Decrease in % (Taking base y

as 2009 )

Particulars Mar '13 Mar '12 Mar '11 Mar '10 Mar '09Mar '13

(in %)

Mar '12

(in %)

Mar '11

(in %)

Mar '10

(in %)

M

(i

12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12

Sources Of Funds

Total Share Capital 95.92 95.92 95.92 95.92 95.92 100.00 100.00 100.00 100.00

Equity Share Capital 95.92 95.92 95.92 95.92 95.92 100.00 100.00 100.00 100.00

Share ApplicationMoney

0 0 0 0 00.00 0.00 0.00 0.00

Preference ShareCapital

0 0 0 0 00.00 0.00 0.00 0.00

Preference ShareApplication Money

0 0 0 0 00.00 0.00 0.00 0.00

Employee StockOpiton

0 0 0 0 00.00 0.00 0.00 0.00

Reserves 3,288.37 2,652.58 2,091.50 1,614.06 1,107.25 296.99 239.56 188.89 145.77

RevaluationReserves

0 0 0 0 00.00 0.00 0.00 0.00

Networth 3,384.29 2,748.50 2,187.42 1,709.98 1,203.17 281.28 228.44 181.80 142.12

Secured Loans 58.53 42.34 49.97 63.7 125.35 46.69 33.78 39.86 50.82

Unsecured Loans 179.13 293.51 183.91 163.14 173.95 102.98 168.73 105.73 93.79

Total Debt 237.66 335.85 233.88 226.84 299.3 79.41 112.21 78.14 75.79

Minority Interest 160.77 136.69 109.89 94.45 75.57 212.74 180.88 145.41 124.98

Policy HoldersFunds

0 0 0 0 00.00 0.00 0.00 0.00

Group Share in JointVenture

0 0 0 0 00.00 0.00 0.00 0.00

Total Liabilities 3,782.72 3,221.04 2,531.19 2,031.27 1,578.04 239.71 204.12 160.40 128.72


59/84


60/84


Consolidated Balance Sheet (Rs in Crores)- Comparative Analysis

Increase Percentage

Decrease Percentage

Particulars Mar '13 Mar '12 Inc/Dec Inc/Dec(in amt) (in %)

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 95.92 95.92 0 0.00

Equity Share Capital 95.92 95.92 0 0.00

Share Application Money 0 0 0 0.00

Preference Share Capital 0 0 0 0.00

Init. Contribution Settler 0 0 0 0.00

Preference Share Application Money 0 0 0 0.00

Employee Stock Opiton 0 0 0 0.00

Reserves 3,288.37 2,652.58 635.79 23.97

Revaluation Reserves 0 0 0.00 0.00

Networth 3,384.29 2,748.50 635.79 23.13

Secured Loans 58.53 42.34 16.19 38.24

Unsecured Loans 179.13 293.51 -114.38 -38.97

Total Debt 237.66 335.85 -98.19 -29.24

Minority Interest 160.77 136.69 24.08 17.62

Policy Holders Funds 0 0 0.00 0.00

Group Share in Joint Venture 0 0 0.00 0.00

Total Liabilities 3,782.72 3,221.04 561.68 17.44


61/84


Particulars Mar '13 Mar '12Inc/Dec Inc/Dec

12 mths 12 mths 12 mths 12 mths

Application of Funds

Gross Block 3,429.37 2,145.82 1,283.55 59.82

Less: Accum. Depreciation 988.4 845.27 143.13 16.93

Net Block 2,440.97 1,300.55 1,140.42 87.69

Capital Work in Progress 59.21 845.93 -786.72 -93.00

Investments 280.68 354.74 -74.06 -20.88

Inventories 1,830.29 1,598.89 231.40 14.47

Sundry Debtors 980.88 782.76 198.12 25.31

Cash and Bank Balance 751.98 556.14 195.84 35.21

Total Current Assets 3,563.15 2,937.79 625.36 21.29

Loans and Advances 444.95 420.97 23.98 5.70

Fixed Deposits 0 68.17 -68.17 -100.00

Total CA, Loans & Advances 4,008.10 3,426.93 581.17 16.96

Deffered Credit 0 0 0.00 0.00

Current Liabilities 2,466.85 2,262.21 204.64 9.05

Provisions 539.39 444.9 94.49 21.24

Total CL & Provisions 3,006.24 2,707.11 299.13 11.05

Net Current Assets 1,001.86 719.82 282.04 39.18

Minority Interest 0 0 0.00 0.00

Group Share in Joint Venture 0 0 0.00 0.00

Miscellaneous Expenses 0 0 0.00 0.00

Total Assets

3,782.72 3,221.04 561.68 17.44

Contingent Liabilities 192.96 472.61 -279.65 -59.17

Book Value (Rs) 352.83 286.54 66.29 23.13


62/84


Consolidated Balance Sheet (Rs in Cr)- Common Size

Analysis

Important Indicators

Particulars Mar '13% of Total

Liabilities

12 mths 12 mths

Sources of Funds

Total Share Capital 95.92 2.54

Equity Share Capital 95.92 2.54

Share Application Money 0 0.00

Preference Share Capital 0 0.00

Init. Contribution Settler 0 0.00

Preference Share Application Money 0 0.00

Employee Stock Opiton 0 0.00

Reserves 3,288.37 86.93

Revaluation Reserves 0 0.00

Networth 3,384.29 89.47

Secured Loans 58.53 1.55

Unsecured Loans 179.13 4.74

Total Debt 237.66 6.28

Minority Interest 160.77 4.25

Policy Holders Funds 0 0.00

Group Share in Joint Venture 0 0.00

Total Liabilities 3,782.72 100.00


63/84


ParticularsMar '13

% of Total

Assets

12 mths 12 mths

Application of Funds

Gross Block 3,429.37 90.66

Less: Accum. Depreciation 988.4 26.13

Net Block 2,440.97 64.53

Capital Work in Progress 59.21 1.57

Investments 280.68 7.42

Inventories 1,830.29 48.39

Sundry Debtors 980.88 25.93

Cash and Bank Balance 751.98 19.88

Total Current Assets 3,563.15 94.20

Loans and Advances 444.95 11.76

Fixed Deposits 0 0.00

Total CA, Loans & Advances 4,008.10 105.96

Deffered Credit 0 0.00

Current Liabilities 2,466.85 65.21

Provisions 539.39 14.26

Total CL & Provisions 3,006.24 79.47

Net Current Assets 1,001.86 26.49

Minority Interest 0 0.00

Group Share in Joint Venture 0 0.00

Miscellaneous Expenses 0 0.00

Total Assets3,782.72 100.00


64/84


Consolidated Profit & Loss account (in Crores) - Trend Analysis

Increase/Decrease in % ( Taking base ye

as 2009)

IncreasePercentage

Decrease

Percentage

ParticularsMar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '13 Mar '12 Mar '11 Mar '10 M

12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths 1

Income

Sales Turnover 12,600.41 10,875.17 8,671.13 7,393.30 6,301.46 199.96 172.58 137.61 117.33

Excise Duty 1,173.06 873.07 673.12 449 561.81 208.80 155.40 119.81 79.92

Net Sales 11,427.35 10,002.10 7,998.01 6,944.30 5,739.65199.09 174.26 139.35 120.99

Other Income 114.52 68.83 79.62 137.03 22.09 518.42 311.59 360.43 620.33

StockAdjustments

194.69 206.25 169.33 124.9 -12.69-

1534.20-

1625.30-

1334.36 -984.24

Total Income 11,736.56 10,277.18 8,246.96 7,206.23 5,749.05 204.15 178.76 143.45 125.35

Expenditure

Raw Materials 6,627.32 5,977.01 4,653.93 3,882.47 3,403.19 194.74 175.63 136.75 114.08

Power & FuelCost

110.28 84.74 74.56 56.48 54.01204.18 156.90 138.05 104.57

Employee Cost 623.56 527.85 455.88 438.17 372.39 167.45 141.75 122.42 117.66

Other

ManufacturingExpenses

19.59 97.16 76.88 54.92 44.0344.49 220.67 174.61 124.73

Selling andAdmin Expenses

501.74 1,879.41 1,504.10 1,306.68 1,082.3446.36 173.64 138.97 120.73

MiscellaneousExpenses

2,007.61 97.65 83.85 92.23 70.672840.82 138.18 118.65 130.51

Preoperative ExpCapitalised

0 0 0 0 00.00 0.00 0.00 0.00

Total Expenses 9,890.10 8,663.82 6,849.20 5,830.95 5,026.63 196.75 172.36 136.26 116.00


65/84


Operating Profit1,731.94 1,544.53 1,318.14 1,238.25 700.33

247.30 220.54 188.22 176.81

PBDIT 1,846.46 1,613.36 1,397.76 1,375.28 722.42 255.59 223.33 193.48 190.37

Interest 36.65 38.15 25 36.75 32.46 112.91 117.53 77.02 113.22

PBDT 1,809.81 1,575.21 1,372.76 1,338.53 689.96 262.31 228.30 198.96 194.00

Depreciation 154.6 121.13 113.13 83.56 74.38 207.85 162.85 152.10 112.34

Other Written Off 0 0 0 0 0 0.00 0.00 0.00 0.00

Profit Before Tax 1,655.21 1,454.08 1,259.63 1,254.97 615.58 268.89 236.21 204.62 203.87

Extra-ordinaryitems

3 1.96 5.37 7.66 6.9243.35 28.32 77.60 110.69

PBT (Post Extra-

ord Items)1,658.21 1,456.04 1,265.00 1,262.63 622.5

266.38 233.90 203.21 202.83

Tax 498.69 435.46 383.65 378.72 203.02 245.64 214.49 188.97 186.54

Reported Net

Profit1,159.52 1,020.58 881.35 883.91 419.48

276.42 243.30 210.11 210.72

Minority Interest 45.64 31.85 38.11 48.27 21.64 210.91 147.18 176.11 223.06

Share Of P/L OfAssociates

0 0 0 0 00.00 0.00 0.00 0.00

Net P/L AfterMinority Interest& Share OfAssociates

1,110.88 986.77 837.87 826.83 392.16

283.27 251.62 213.66 210.84

Total ValueAddition

3,262.78 2,686.81 2,195.27 1,948.48 1,623.44200.98 165.50 135.22 120.02

PreferenceDividend

0 0 0 0 00.00 0.00 0.00 0.00

Equity Dividend 441.23 383.69 306.94 258.98 167.86 262.86 228.58 182.85 154.28

Corporate

Dividend Tax

74.29 62.24 50.11 43.33 28.88

257.24 215.51 173.51 150.03 Per share data (annualised)

Shares in issue(lakhs)

959.2 959.2 959.2 959.2 959.2100.00 100.00 100.00 100.00

Earning Per

Share (Rs)120.88 106.4 91.88 92.15 43.73

276.42 243.31 210.11 210.72

Equity Dividend(%)

0 0 0 0 00.00 0.00 0.00 0.00

Book Value (Rs) 352.83 286.54 228.05 178.27 125.44 281.27 228.43 181.80 142.12


66/84


67/84


Operating Profit 1,731.94 15.16

PBDIT 1,846.46 16.16

Interest 36.65 0.32

PBDT 1,809.81 15.84

Depreciation 154.6 1.35

Other Written Off 0

Profit Before Tax 1,655.21 14.48

Extra-ordinary items 3 0.03

PBT (Post Extra-ord Items) 1,658.21 14.51

Tax 498.69 4.36

Reported Net Profit 1,159.52 10.15

Minority Interest 45.64 0.40

Share Of P/L Of Associates 0

Net P/L After Minority Interest & Share Of Associates 1,110.88 9.72

Total Value Addition 3,262.78 28.55

Preference Dividend 0

Equity Dividend 441.23 3.86

Corporate Dividend Tax 74.29 0.65

Per share data (annualised)

Shares in issue (lakhs) 959.2 8.39

Earning Per Share (Rs) 120.88 1.06

Equity Dividend (%) 0

Book Value (Rs) 352.83 3.09


68/84


Ratio AnalysisIncrease

Decrease


Investment Valuation Ratios

Face Value 10 10 10 10 10

Dividend Per Share -- -- -- -- --

Operating Profit Per Share (Rs) 180.56 161.02 137.42 129.09 73.01

Net Operating Profit Per Share (Rs) 1,191.34 1,042.76 833.82 723.97 598.38

Profitability Ratios

Operating Profit Margin(%) 15.15 15.44 16.48 17.83 12.2

Profit Before Interest And TaxMargin(%)

13.66 14.13 14.92 16.49 10.83

Gross Profit Margin(%)13.8 14.23 15.06 16.62 10.9

Cash Profit Margin(%) 11.35 11.33 12.18 12.57 8.71

Adjusted Cash Margin(%) 11.35 11.33 12.18 12.57 8.71

Net Profit Margin(%) 9.65 9.81 10.44 11.93 6.88

Adjusted Net Profit Margin(%)9.65 9.81 10.44 11.93 6.88

Return On Capital Employed(%) 46.71 48.42 52.84 62.58 44.25

Return On Net Worth(%) 32.91 35.97 38.54 48.86 33.06

Adjusted Return on Net Worth(%) 34.17 37.11 39.81 46.58 35.68

Return on Long Term Funds(%) 49.29 52.76 56.87 68.21 52.03


69/84


Liquidity And Solvency Ratios

Current Ratio 1.24 1.16 1.01 0.94 1.09

Quick Ratio 0.72 0.66 0.47 0.49 0.74

Debt Equity Ratio 0.07 0.12 0.11 0.13 0.25

Long Term Debt Equity Ratio 0.01 0.03 0.03 0.040.06

Management Efficiency Ratios

Inventory Turnover Ratio 6.88 7.1 6.96 8.09 8.67

Debtors Turnover Ratio 12.96 14.62 14.18 12.46 11.12

Investments Turnover Ratio 6.88 7.1 6.96 8.09 8.67

Fixed Assets Turnover Ratio 3.48 4.95 4.17 4.82 4.06

Total Assets Turnover Ratio 3.14 3.23 3.3 3.59 3.88

Asset Turnover Ratio 3.26 3.48 3.51 4.82 4.06

Average Finished Goods Held -- 43.53 41.62 37.23 31.26Number of Days In Working Capital 31.56 25.91 10.25 4.06 29.22

Profit & Loss Account Ratios

Material Cost Composition 57.99 59.75 58.18 55.9 59.29

Selling Distribution Cost Composition 4.39 16.07 15.95 15.62 15.7

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 46.28 45.1 42.34 36.17 49.45

Dividend Payout Ratio Cash Profit 40.64 40.17 37.33 32.88 41.66

Earning Retention Ratio 55.43 56.29 59.01 62.05 54.18

Cash Earning Retention Ratio 60.69 60.93 63.72 65.66 60.95


70/84


Cash Flow

Increase


Net Profit Before Tax 1515.88 1362.93 1122.83 1104.81 547.88

Net Cash From Operating Activities 1081.12 753.67 743.25 847.41 325.21

Net Cash (used in)/from-424.87 -464.87 -410.23 -241.81 -16.69

Investing Activities

Net Cash (used in)/from Financing Activities -590.35 -297.06 -321.15 -237.99 -221.61

Net (decrease)/increase In Cash and CashEquivalents

65.9 -8.26 11.85 367.61 86.91

Opening Cash & Cash Equivalents 500.97 509.23 495.55 127.94 41.35

Closing Cash & Cash Equivalents 566.87 500.97 507.4 495.55 128.26

PEER COMPARISON

Highest

Company Name

Last Price Market Cap. Sales Net Profit Total

Assets(Rs. cr.) Turnover

Asian Paints536.5 51,460.96 10,418.78 1,169.06 3,069.02

Berger Paints237.3 8,221.88 3,024.21 209.8 1,287.45

Kansai Nerolac1,243.00 6,698.77 3,154.40 206.6 1,346.46

Akzo Nobel8

Summer Project IDBI

Documents

Transcript of Summer Project IDBI