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A FINANCE REPORT

ON

Asian paintsSubmitted To:

Shree B.W.T.I.B.A

Submitted By:

Ajay p. virani

Roll No: 2149

S.Y.B.B.A

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INDEX

Sr.No Title Page

No.

PrefaceAcknowledgment

History of company

1 General information

Name of the company

Reg. office

Location plant

Board of directors

Product name

Business of company

Future plan

Demand

Supply

Competitor

Vision

Mission

2 Theory of ratio analysis

Meaning, classification

Advantages, disadvantages

3 Cash flow statement,

advantages

4 Meaning of common size

statement and advantages

5 Ratio calculation

6 Spread sheet

Balance sheet

7 P&l account8 Common size statement

balance sheet

9 P&l account

10 Conclusion

11 Bibliography

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PREFACE

As per the information given by university. I am student of s.y.b.b.a.

have to submit the report of financial analysis of any company of

corporative unit. So in accordance with that I have

Preparethe analysis report of finance on Asian paints

The report has been divide in to varioussections for the convenience of

proper exhaustibly with origin, objective, PBT, PAT and amount of taxation.

A separate second section is divided in to financial function in general

meaning Importance of finance and types of finance .The third chapter is

divided to balance sheet analysis with nation. Analysis of cash flow than I

have made conclusion

It gives a change to interact with person in business unit, due to this report

we come to know about the financial status of industrial house.

ACKNOWLEDGEMENT

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Practical training is one of the highlight of BBA course. I here by take theopportunity to thankful all of them specially. I also thankful to the company for

their guidance sparing their valuable time discussing the section aspect of mgt.

First of all I would like to thank our honorable co-coordinator Pro.-

PallaviOja.Who will provide me the permission for the industrial financial

report. And who helped me a lot normally and provided us with all academic

and after information.

History of company

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TODAY

An Asian paint becomes the 10th

largest decorative Paint Company in the word

Asian paints is more than twice resize of its nearest competitor.

It is one of the most admired companies in India.

Present in 22 countries with 27 manufacturing location, over 2500 sku

integrated SAP-ERPD 12-SCM solution Asian paints aims to become the 5th

largest

decorative paint company in the word.

*1967

Asian paint emerges as Indias leading Paint Company ahead of any international

company.

*1955-56

The family owned company makes the transaction to a professionally managed

organization.

Asian paints embark on an ambitions grassroots marketing campaign, partnering

with thousands of dealers in small towns all over India.

*1954

Asian paints mascot, Gatos, the mischievous kid is born.

*1945

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An Asian paint touches a turnover of RS.3, 50,000 with an innovative marketing

strategy to reach consumers in the remotest corners of the country with small

packs.

*1st

FEBRUARY, 1942

Armed with little knowledge and great

determination,champaklalh.choksey,chimanlal n. choksi,suryakant c. dani and

arrived r. vakil get together to manufacture point in a garage on focus road,

Bombay. They name their company the Asian oil & paint company a name that

they picked randomly from a telephone directory.

1

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GENERAL INFORMATION

NAME OF THE COMPANY

Asian paints ltd.

REGISTERED OF COMPANY

*Asian paints limited,

Asian paints house,

6 A, shantinagar

Santacruz (E),

Mumbai400055

India

TEL=022-39818000

FAX=022-39818888

Asian paints helpline = 1800 209 5678

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LOCATON OF PLANTS

*Pthalic plant plot no.2702

GIDC industrial area,

Ankleshwar-393002Gujarat-India

*Pentadivision plot no.2602

GIDC industrial area,

Ankleshwar-393002

Gujarat - India

*Shantinagarsantacruz,Mumbai-4000554

Maharashtra India

Phone - 39818000

Fax - 39818888

Email investor [email protected]

Internet N.A.

NOTE there are many other plants in India

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. NAME OF BOARD OF DIRECTOR* CHAIRMAN *

1. MR.ASHVIN CHOKSI

(Non executive chairman)

2. MR. ASHVIN DANI

(Non executive VICE chairman)

* DIRECTOR *

1. MR.ABHAY VAKIL

2. MR. P.M. MARTY (MANAGING DIRECTOR & CEO)

3. MR.MAHENDRA CHOKSI

4. MR. AMAR VAKIL

5. MR. INA DANI

6. MRS. TARJANI VAKIL

7. MR. DIPANKAR BASU

8. MR. MAHENDRA SHAH

9. MR. RAJENDRA SHAH

10. DR. S. SIVARAM

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NAME OF PRODUCTS MANUFACTURE

* ANCILLIARIES*

1. Deco prime wall primer WT,

2.Deco prime wall primer ST,

3. Acrylic wall putty

4. Exterior wall putty

5. Wood primer

6. Exterior wall primer

* AUTOMOTIVE*

1. Car paint

* Decorativepaints *

1. Exterior walls

2. Interior walls

3. Metal surfaces

4. Wood surfaces

- ACF exterior emulsion

- Apex vltima

- Royale

- Royale play

- Apex duracast

- Tractor emulsion

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- Ustav

- Wood finishes

- Royale shyness

Business of company

* Paint industry

FUTURE PLANE

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Through its implementation of SAP.CRM, asianpaint has established a direct

link to its and customer & put in place processes to ensure that their high

expectation will be met.

In an effort to realize an even greater return on its IT investment,Asian

paints used its sap crm infrastructure to develop an e-recruitment platform

in 2006.This plant from always employment agencies to review opening

and upload job candidates information. Reduce time required to fill open

positions. An in the future Asian paint plans to leverage its SAP, CRM in the

following areas.

1: Campaign management

2: New market segments

3: Complaint handling system

CURRENT STATUS OFINDUSTRYA: DEMAND

B: SUPPLY

A-DEMAND

Paint demand is intrinsically related to economic development.

The demand for decorative paint in India mainly arise from two segment

vies construction of new building and detail demand for re forbishmentwhile the demand for industrial paint comes from industries like

automobile, consumer durable shipping engineering etc.The demand for

paints has grown at 10% for last five year after the sluggish growth in late

80s &early 90s industries grew at rapid place of more than 12% from

1992-1996

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The industrial segment will growth faster due to the lower base and fast

growth in major users like consumer durable & automobile.

B:SUPPLY

An Asian paint has harnessed the power of state of the art supply chain

system using cutting edge technology to integrate all its plants.Regional

processing centers and branches in India.

All the companys paint plants in India two chemical plants 18

processing center, 350raw material and intermediate goods&suppliers, 140

packing material venders, 72 depots are integrated.

The supply chain runs through a wide spectrum of functions. Right from

materials planning to procurement to primary distribution .It has played a

pivotal role in improving operational efficiencies. And creating agile

procurement production and delivery systems. It has also delivery the

flexibility of operations.

COMPITITOR

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Berger paints

Kansainarolac paints

Deluxe paints

Shalimar paints

Bombay paints

Sarika paints

Jenson &Nicholson

VISIONThe company committed to be a world class; customer focused

innovative organization in the field of specialty &fine chemical

&to be partner of choice to the chemical,defragment crop-

science & life-science companies.

MISSIONTo provide customer satisfaction.

To make research and development as the sustainable engine

of the organization.

To continually enhance stockholders value by

optimumutilization of resources.

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PART 2

Meaning of ratio

Ratio analysis is a tool through which the financial position of the firm can be

measured. It is a study of comparison between the company performance and in

various years. As the future and past of the firm are closely related to each other

ratio analysis prove to be again to predict the future of company. Ratio analysis

covers all the different aspect of finance and the position of firm like overall

performance of the firm.

Different calculations of ratio provide guidance and assistance to take important

decisions for the firm. They help the managers to achieve long term and short term

goals.

In todays fast changing world the business strategies and operations are changing

day by day. In this situation ratio works as an alarm for the management to take

immediate steps.

This through the knowledge of these ratios and in view their utility ratio analysis

plays a vital role in todays business world

Importance of ratio analysis:

The use of ratio was started by banks for ascertaining the liquidity and profitability of

companies for the purpose of advancing loans to them. It gradually became popular

and other creditors began to use them.

1) Profitability:

Useful information about the head of profitability is available from profitability ratio.

The gross profit ratio, net profit ratio and ratio of return on investment give good idea

of the profitability of business on the basis of the ratios investors get an idea about

the efficiency of the managers and bank as well as other creditors draws useful

conclusion about repaying capacity of the borrowers.2) Efficiency:

The turnover ratios are excellent guides to measure the efficiency of managers. For

e.g. the stock turnover will indicate how efficiently the scale is being made. The

debtor turnover will indicate the efficiency of collection department and assets are

used in business.

3) Indicate trends:

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The ratios of the last three to five years will indicate the trend in ratio of firm is lower

than the industry average. Even for capital expenditure ratio of return on investment

will guide the management. The efficiency of various department can be judged on

the basis of each department can thus be determined. Last 5 year shows an

improving trend, it is an encouraging trend. Reserves may also be true. A particular

ratio of a company for 1 year may compare favorably with industry position, it is not

desirable. Only ratio analysis will provide this information.

4) Useful for budgetary control:

Regular budgetary reports are prepared in business where the system of budgetary

control is in use. If various ratios are presented in this report it will give good idea

about various aspects for financial position.

5) Useful for decision making:

Ratio guides management in making some of the important decision. Suppose, the

liquidity ratio shows unsatisfactory position, the management may decide to take

quick action.

LIMITATION OF RATIO ANALYSIS:

The utility of ratios computed from the financial statements of one year only is

obviously limited.

While comparing ratios of the different firms, it must be remembered that

different firms follows different accountancy plans policies. Great care has to be

exercised before any conclusions are drawn from such comparisons.While comparing ratio of past several years it should be remembered that

changes in price level may render such comparisons useless.

One ratio used without reference to other ratio may be misleading.

Before taking any action on the basis of accounting ratio, rigorous investigation

must be made.

Rigidity in ratio will be harmful to business.

It is of no use if the ratios are found between two figures which have no relation

with each other.

Classification of ratio:

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Traditional classification: Functional classification

1) Revenue statement.

2) Balance sheet ratio.3) Composite ratio

Functional classification:

Profitability Ratio

In relation to salesIn relation to investment

1) G P Ratio 1) Return on capital employed

2) N P Ratio 2) Return on share holders funds

3) Expense Ratio 3) Return on equity sh. funds

4) Operating Ratio 4) Return on share capital

5) Earnings per share

6) Dividend per share

7) Price earnings ratio

8) Dividend yield ratio

9) Interest coverage ratio

(3)

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COMMON SIZE STATEMENT

Meaning:-

The Common Size Statement prepared in which all items are compared

with one common base, which is significant.

Common Size Statement is prepared for Balance Sheet as well as Profit

& Loss Account.

Usefulness:-

Common Size Statements give useful proportions of each component

to the total.

But they alone are not of much use, as they do not give information

about the trends of individual items from year to year.

They must be used along with trend percentage and individual ratio

based on these two statements.

Common Size Statements are found to be very useful for comparison

of two business enterprises at a certain date.

(4)

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Cash flow statement:

INTRODUCTION

Cash is the most liquid assets of a business. All business transactions ultimately

result in to cash in flow or cash flow, hence a statement that flow is considered to

be an important on it can be said, and therefore that cash is both beginning and

the end of the business operations. The business should have sufficient cash on

hand, that the liabilities can be paid as and when they fall due. The cash on hand

should not be excessive otherwise the cash would remain idle, reducing the over

all profit ability.

Sources of Cash flows,

The most important source of cash in flow is that which is generated by business

operations. This includes two items.

Profit from change in current assets is current liabilities.

Profit from operations.

Cash Flow from change in current assets is current liabilities.

Cash flow from fixed Assets and Liabilities

(A) Cash Receipts

(1) Sale of fixed assets

(2) Sales of investment

(3) Proceeds of fresh issue of shares or debentures

(4) Bank Loan etc.

(B) Cash Payment

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(1)Purchase of fixed assets

(2)Shares capital or bank loan returned

(3)Payment of dividend

(4)Payment of taxes

Utility of cash Flow Statement

(A) Efficient Cash Management

(B) Useful for internal Financial Management

(C) Information about cash receipts and payments

(D) Useful for Control

(E) Ease in obtaining funds

Limitations of Cash Flow Statement

(A) Does not always show the true liquid position of business.

(B) Fails to give any idea about the profitability

(C) Cash Flow can at the best supplement fund flow statement be

because cash is only a part of working capitals.

(D) Cash Flow Statement is not useful by it self for cash planning and

control.

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5 RATIOCALCULATION

C.o.g.s. calculation

PARTICULARS 2009 2010 2011

Raw material consumed 2119.93 2361.93 2081.9

(+)packing materials 428.33 493.04 600

(+)cost of paints purchase for resale 40.10 51.76 66.84

(+)cost of other goods sold 33.70 39.35 37.66

(+)increase in excise duty on finished

goods

16.80 22.63 16.93

(+)stores and surplus 16.75 19.11 24.99

(+)power and fuel 45.78 47.03 65.98

(+)processing charges 28.18 35.29 41.67(+)repairs maintenance of machinery 5.57 5.91 8.61

total 2733.14 3076.05 3944.6

WORKING NOTE FOR GROSS PROFIT

Particulars 2009 2010 2011

Sales 4270.05 5125.08 6322.24

(-)c.o.g.s 2733.14 3076.05 3944.6

Total 1536.91 2049.03 2377.64

WORKING NOTE FOR CAPITAL EMPLOYED


Share capital 95.92 95.92 95.92

(+)reserve&surpluse 998.55 1461.30 1879.40

(+)secured loan 24.59 25.59 23.43Total 1119.06 1582.81 1998.75

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(1)Net profit ratio

This ratio measured the relation between the net profit and sales of firm.the net

profit is obtained after changing operating expenses,interest,depreciation and

taxes to the gross profit.

Formula:-

Net profit= net profit (PAT) sales 100

Particular 2009 2010 2011

Net profit100364.3 774.50 775.15

Net sales 4330.11 5268.93 6410.40

Ratio(%) 8.41 14.69 12.09

INTERPRETATION=

FROM THE ABOVE NET PROFITE RATIO WE CAN SAYS THAT COMPANY EARNS

MORE NET PFOFITE OF THE YEAR 20009-2010 THEN THE OTHER YEARS 2008-

2009,2010-2011 THE RATIO OF 2009-2010 IS MORE THAN 2008 AND 2010-2011

8.41

14.69

12.09

0

5

10

15

20

2008-09 2009-10 2010-11

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(2)RETURN ON CAPITAL EMPLOYED

This ratio shows the relationship between net profit before interest and tax to

capital employed, capital employed=share capital long term lai.+res. &surplus.

Formula:-

Return on capital employed=NPBIT capital employed100

particular 2009 2010 2011

NPBIT100 558.28 1118.18 1138.18

Capital employed 119.06 1582.81 1998.75

Ratio(%) 49.89 70.60 56.94

INTERPRETATION=

FROM THE ABOVE DATA THE YEAR 2009-2010S RATIO IS MORE THAN OTHER

YEAR 2008-009

AND 2010-2011

49.89

70.6

56.94

0

20

40

60

80

2008-09 2009-10 2010-11

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(3)Equity per share: -

this ratio measures the profit available to equity share holders on per share basis.

Formula:-

EPS=after tax profit-preference dividend/no. of equity share


NPBIT-Pref.divi. 3673600000 7745000000 7751500000

No. of equity share 95919779 95919779 95919779

Ratio 37.78 80.75 80.81

INTERPRETATION=

THERE ARE EPS IS 37.78% IN 2009.THEN IT IS CONTINUASLY INCREASE IN 2010

AND 2011.IT IS GOOD SIG FOR COMPANY.

37.78

80.75 80.81

0

10

20

30

40

50

60

70

80

90

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(4)Return on shareholders equity:-

this ratio measured the profitable in relation to only owner spend.

Formula:-

Return on shareholder equity=NPAIT*100/shareholder


NPAT100 362.36 774.50 775.15

Shareholder fund 1094.47 1557.22 1975.32

Ratio 33.11 49.74 39.24

INTERPRETATION=

FROM THE ABOVE DATA THE YEAR 2009-10HAVE MORE RATE OF PERCENTAGE THAN 2008-

2009AND 2010-2011.

33.11

49.74

39.24

0

10

20

30

40

50

60

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(5)Capital employed& long term Loan:-

the ratio is useful in measuring the managerial efficiency of operating the

business.

Formula:-

Capital employed=capital employed/long term loan


Capital employed 1975.32 1094.47 1557.2

Long term loan 64.86 74.53 38.59

ratio 30.45 14.68 22.70

.

INTERPRETATION=

ROM THE ABOVE DATE THE YEAR 2008-2009S RATIO IS MORE THEN 2009-

10,2010-2011.IT IS GOOD SIGN FOR THE COMPANY.

(6)Proprietor ratio:

30.45

14.68

22.7

0

5

10

15

20

25

30

35

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-the ratio shows the proportion of proprietor fund to the total assetsemployed in

business. The higher ratio shows stronger financing position of the enterprise.

Formula:-

Proprieties ratio:-proprieties fund/total assets*100


PROPRIETOREY FUND 1094.47 1557.22 1975.32

TOTAL ASSETS 2174.65 3134.15 3861.66

ratio 50.33 49.69 51.15

.

INTERPRETATION=

FROM THE ABOVE DATA WE CAN SAY THAT THE RATIO OF 2010-2011 IS 51.15%

WHICH IS HIGHER THAN THE OTHER RATIO WHICH ARE 50.33% OF 2008-2009

AND 49.69% OF 2009-2010.

50.33

49.69

51.15

48.5

49

49.5

50

50.5

51

51.5

2008-09 2009-10 2010-11

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(7)Debtor equity ratio:-

this ratio is only another form of proprietary ratio and establishes relationship

between the outside long term liability and owners funds.

Formula:-

Deb equity ratio=long term liability/shareholders fund*100


Long term 24.59 25.59 23.43

Share holders fund 1094.47 1557.59 1975.32

Ratio(%) 2.25 1.64 1.19

INTERPRETATION=

FROM THE ABOVE DATA THE YEAR 2008-09 HAVE HIGHER DEBT.EQUTIY

RATIO THEN OTHER YEARS WICH ARE 2009-2010 AND 2010-2011. THE

LOWEST RATE SHOWS THAT BUSINESS IS STABLE.

2.25

1.64

1.19

0

0.5

1

1.5

2

2.5

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(8)Interest coverage ratio:

-this ratio indicates to how many times the profit cover the payment of interest

on debenture and other long term loans.

Formula:-

Interest coverage ratio=EBIT/interest


EBIT 558.28 1118.43 1138.18

Interest 10.40 13.76 15.35

Ratio(times) 53.68 81.28 74.15

INTERPRETATION=

THE YEAR 2009-10 HAS HIGHEST RATE OF COVRAGE RATIO WHICH 81.28 TIMES

WHERE OTHER ARE 53.08 OF THE YEAR 2008-09 AND 74.15 OF THE YEAR 2010-

11.

53.68

81.2874.15

0

10

20

30

40

50

60

70

80

90

2008-09 2009-10 2010-11

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(9)Total assets turnover ratio:-

the funds used in business are employed in both fixed assets and current assets

both and profit is earned with the help of both.

Formula:-

Total assets turnover ratio=sales/total assets


Sales 4270.05 5125.08 6322.24

Total assets 2174.65 3134.15 3861.66

Ratio(times) 1.96 1.64 1.64

INTERPRETATION=

THE DATA SHOWS THAT YEAR 2008-09 HAVE HIGHEST RATE OF TOTAL ASSETS

TURNOVER RATIO WHICH IS 1.96 TIMES HEN OTHER YEAR 2009-10 AND 2010-11

HAS SIMILAR RATE OF TOTAL ASSETS TURNOVER RATIO.

1.96

1.64 1.64

1.4

1.5

1.6

1.7

1.8

1.9

2

2008-09 2009-10 2010-11

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(10)Fixed assets turnover ratio:-

to certain in the efficiency and profitability of business the total fixed assets are

compared to sales.

Formula:-

Fixed assets turnover ratio=sales/fixed assets


Sales 4270.05 5125.08 6322.24

Fixed assets 711.77 1088.18 1096.86

ratio 5.99 4.71 5.76

INTERPRETATION=

THE ABOVE DATA SHOWS THAT THE YEAR 2008-09 HAVE HIGHEST TIME OF FIXED

ASSETS TURNOVER RATIO IS 6 TIMES WHERE OTHER ARE 4.71 AND 5.76 TIMES

RESPECTIVELY.

5.99

4.71

5.76

0

1

2

3

4

5

6

7

2008-09 2009-10 2010-11

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(11)Current assets turnover ratio:

-the fund used in business is employed in both fixed and current assets both and

profit is earned with the help of both.

Formula:-

Current assets turnover ratio=sales/current assets


Sales 4270.05 5125.08 6322.24

Current assets 957.74 1745.98 1460.44

ratio 4.45 2.93 4.32

INTERPRETATION=

THE ABOVE DATA SHOWS THAT THE YEAR 2008-09 IS HIGHEST RATIO COMPAIRE

TO YEAR 2010 AND 2011.

4.45

2.93

4.32

0

1

2

3

4

5

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(12)Return on total assets:-

this ratio shows relationship between net profit after tax and total assets.

Formula:-

Return on total assets=NPAIT/total assets*100


NPAIT*100 351.96 760.74 759.8

Total assets 2174.65 3134.28 1730.04

ratio 16.18 24.26 43.91

INTERPRETATION=

FROM THE ABOVE DATA SAYS THAT THE YEAR 2010-11S RATIO IS HIGHEST RATIO

COMPAIRE TO OTHER YEAR 2009 AND 2010. IT IS GOOD SIGN FOR THE COPANY.

16.18

24.26

43.91

0

10

20

30

40

50

2008-09 2009-10 2010-11

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(13)Gross profit ratio:-

it is the basis measure on business it express relationship between gross profits to

net sales.

Formula:-

Gross profit ratio=gross profit/sales*100


Gross profit*100 1536.91 2049.03 2377.64

Sales 4270.05 5125.08 6322.24

ratio 35.993 39.98 37.61

INTERPRETATION=

THE RATIO OF 2010-11 IS MORE THAN 2008-09 BUT LESS THAN 2009-2010.

35.993

39.98

37.61

33

34

35

36

37

38

39

40

41

2008-09 2009-10 2010-11

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(14)Financial Expenditure ratio:-

it shows the expenditure of the company.

Formula:-

Financial Expenditure ratio=expenses/sales*100


Expenses*100 24.66 39.41 36.74

Sales 4270.05 5125.08 6322.24

ratio 0.58 0.77 0.58

INTERPRETATION=

FROM THE ABOVE RATIO WE CAN SAY THAT THE YEAR 2009-10HAVE HIGHER

PERCENTAGE RATE OF RATIO WHERE THE YEAR 2008-09 AND 2010-11 HAVE

LOWEST PERCENTAGE RATE OF RATIO.

0.58

0.77

0.58

0

0.2

0.4

0.6

0.8

1

2008-09 2009-10 2010-11

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(15)Debtors ratio:-

the debtors ratio shows the number of days taken to collect the duke of credits

sales.

Formula:-

Debtor ratio=debtors bill receiver/credit sales*360


Debtor b/r 359.32 398.08 453.8

Credit sales 4270.05 5125.08 6322.24

Ratio(days) 30.29 27.96 25.84

INTERPRETATION=

FROM THE ABOVE DATA WE CAN SAY THAT DEBTORS ARE CONTINUASLEY

REDUSE WHICH IS GOOD SIGN FOR CCOMPAY.

30.29

27.96

25.84

22

24

26

28

30

32

2008-09 2009-10 2010-11

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(16)Cost of goods sold:-

this ratio is used to ascertain the efficiency of the management. It is affected by a

number of factors.

Formula:-

Cogs ratio=cogs/sales*100


Cogs*100 2733.14 3076.05 3944.6

Sales 4270.05 5125.08 6322.24

ratio 64.01 60.01 68.39

INTERPRETATION=

THE YEAR 2010-11 HAS HIGHEST RATE OF COGS RATIO WHICH IS 68.39%WHERE

OTHER ARE 64.01% THE YEAR 2008-09 AND 60.1 OF THE YEAR 2009-10.

64.01

60.1

68.39

54

56

58

60

62

64

66

68

70

2008-09 2009-10 2010-11

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(17)Administrative ratio:-

Formula:-

Administrative ratio=admi. /sales*100


Administrative 322.53 350.56 413.75

Sale 4270.05 5125.56 6322.24

ratio 7.55 6.84 6.54

INTERPRETATION=

IF THE ADMINISTRATIVE EXPENSES IS LESS THEN COMPAMY WILL GET GOOD

REWARDS BUT IF IT IS HIGH EXPENDITURE WILL ALSO HIGH SO IT IS GOOD TO

DECREASE THE ADMINISTRATIVE EXPENSES RATE.

7.55

6.84

6.54

6

6.5

7

7.5

8

2008-09 2009-10 2010-11

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(18)Operating expenses:-

Formula:-

Operating expenses=cogs+op. expe/sales*100


Cogs+op exp.*100 3309.21 3740.76 4712.56

Sales 4270.05 5125.08 6322.24

ratio 77.50 72.99 74.54

INTERPRETATION=

FROM THE ABOVE RATIO WE CAN SAY THAT THE YEAR 2008-09 HAVE HIGHER

PERCENTAGE RATE OF RATIO WHERE THE YEAR 2009-10 ON HAVE LOWESTE

PERCENTAGE OF OPERATING RATIO.

77.5

72.99

74.54

70

72

74

76

78

2008-09 2009-10 2010-11

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(19)Interest Coverage ratio:

Formula:

EBIT/INTREST


EBIT 558.28 1118.43 1138.18

INTREST 10.40 13.76 15.35

ratio 53.68 81.28 74.15

INTERPRETATION=

THE YEAR 2009-10 HAS HIGHEST RATE OF COVRAGE RATIO WHICH 81.8

TIMES WHERE OTHER ARE 53.68 OF THE YEAR 2008-09 AND 74.15 OF

THE YEAR 2010-11.

53.68

81.28

74.15

0

20

40

60

80

100

2008-09 2009-10 2010-11

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8

SPREAD SHEET

SHARE CAPITAL

(1) EQUITY SHARE CAPITLE 95.92 95.92 95.92

(2) PREFRENCE SHARE CAPITAL

(3) RESEVES AND SURPLUS 998.85 1461.3 1879.4

NET WORTH 1094.47 1557.22 1975.32

LOAN AND FUNDS

SECURED LOAN 24.59 25.59 23.43UNSECURED LOAN 49.94 43 41.43

DEFEREED TAX LIBILITY 47.91 57.9 75.5

TOTAL 1216.91 1673.71 2115.68

APPLICATION OF FUNDS

FIXED ASSETS

GROSS BLOCK 116.93 1194.39 1611.22

DEPRICIATION 494.02 486.93 554.03

NET BLOCK 622.91 707.46 1057.19

CAPITAL WORK IN PROGRESS 88.86 380.72 39.67

INVESTMENT 234.77 703.69 1034.76CURRENT ASSETS,LOANS AND ADVANTEGES

INVENTORIES 546.71 763.14 1071.76

SUNDRY DEBTORS 3110.2 331.43 366.68

CASH AND BANK BALANCE 128.26 28.6 20.47

INTREST 0.16 0.16 0.17

OTHER ASSETS 48.3 67.85 87.12

LOANS AND ADVANTAGES 193.66 151.1 183.84

CURRENT LIABILITY&PROVISION

LIABILITY 771.9 1156.27 1407.73

PROVISIONS 185.84 304.17 338.25

TOTAL ASSETS 1216.91 1673.71 2115.68

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7. PROFIT&LOSS ACCOUNT

PARTICULARS 2009 2010 2011

INCOME

SALES AND OPERATING INCOME 4819.13 5528.82 6943.85

(-)EXCISE DUTY 549.08 403.74 621.64

SALES AND OPRATING INCOME 4270.05 5125.08 6322.24

Other income

TOTAL

60.06

4330.11

143.85

5268.93

88.16

6410.40

EXPENDITURE

MATERIAL COST 2606.93 2840.24 3646.87

EMPLOYEE COST 238.9 260.64 300.45

MANUFACTURING ADMINI-,SELLING&DISTIBUTION EXP. 862.95 1014.14 1230.42

PROFIT BEFORE INTREST 621.33 1153.71 1232.66

(-)INTREST 10.4 13.76 15.35

(-)DEPRICIATION 57.15 60.64 94.48

PROFIT BEFORE TAX AND EXCEPTIONAL TTEAMS 553.78 1079.21 1122.83

(+)EXCEPTIONAL ITEMS 5.9 25.46 -

PROFIT BEFORE TAX 547.88 1104.67 1122.82

(-)PROVISIONS FOR TAX 162.8 334.01 325.49

DEFFERD TAX 16.39 2.45 26.41

TARING BANIFITS TAX 6.78 - --

EXCESS TAX 2.40 6.29 4.22

PROFIT AFTER TAX(-PRIOR PERIOD ITEMS) 364.31-1.95 774.5 775.15

PROFIT AFTER TAX 362.36 774.5 775.15

(+)BALANCE B/F FROM PRE.YEAR 200 230 600

AMOUNT AVAILABLE FOR APROPRIATION 562.36 1004.5 1375.15

APROPRIATION DIIDEND EQUTIY SHARES 62.35 81.53 81.53

(-)INTERIM DIVIDEND - - -

(-)PROPOSED DOVIDEND 105.51 177.45 225.41

TAX ON DIVIDEND TRANSFER TO GENRAL RESERVE 135.97 102.19 418.10

BALANCE CARRIED TO BALANCE SHEET 230 600 600

562.36 1004.5 1375.15

EARNINGS PER SHARE BASIC AND DILUTED 38.39 78.09 80.81

EARNING PER SHARE BASIC AND DILUTED

(after exceptional items)

37.78 80.84 80.81

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8. COMMON SIZED BALANCESHEET

PARTICULAR AMOUNT IN RS. % OF TOTAL

2009 2010 2011 2009 2010 2011

FUNDS EMPLOYED SHARE HOLDERS

FUNDSSHARE CAPITAL 95.92 95.92 95.92 7.89 5.73 4.53

RESERVE&SURPLUS 998.55 1461.30 1879.40 82.95 87.31 88.83

1094.47 1557.22 1975.32 89.94 93.04 99.36

LOAN FUNDS 24.59 25.59 23.43 2.02 1.53 1.11

SEVRAL LOANS 49.94 43.00 41.43 4.10 2.57 1.96

74.53 68.59 64.86 6.12 4.10 3.07

DEFFERED TAX LIABILITY(NET) 47.91 47.90 75.50 3.94 2.86 3.57

TOTAL 1216.91 1673.71 2115.68 100 100 100

APPLICATION OF FUNDS

FIXED ASSETS

GROSS BLOCK 1116.93 1194.39 1611.22 91.78 71.36 76.16

(-)DEPRICIATION 494.02 486.93 554.03 40.60 29.09 26.19

NET BLOCK 622.91 707.46 1057.19 51.19 42.27 49.97

(+)CAPITAL WORK IN PROGRESS 88.86 380.72 39.67 7.30 22.75 1.88

711.77 1088.18 1096.86 58.49 65.02 51.85

INVESTMENT 234.77 703.69 1034.76 19.29 42.04 48.91

CURRENT ASSETS LOAN &ADV.

INT.ACCURED ON INVESTMENT 0.16 0.16 0.17 0.01 0.04 0.01

INVENTORIES 546.71 763.14 1074.76 44.93 45.60 50.66

SUNDERY DEBTORS 311.02 331.43 366.68 25.56 19.80 17.33

CASH&BAMK BALANCE 128.26 28.60 20.47 10.54 1.17 0.97

OTHER CURRENT ASSETS 48.30 66.55 87.12 3.97 3.98 4.1

LOAN&ADV. 193.66 152.40 183.84 15.91 9.11 8.69

1228.11 1342.28 1730.04 100.92 80.20 81.77

CURRENT LIABILITY

CURRENT LIABILITY 771.90 1156.27 1407.73 63.43 69.08 66.54

PROVISIONS 185.84 304.17 338.25 15.27 18.17 15.99

957.84 1460.44 1475.98 78.70 87.26 82.53

CURRENT ASSETS 270.37 118.16 75.94 22.22 7.06 0.75

TOTAL 1216.91 1673.71 2115.68 100 100 100

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9

COMMON SIZE P&L ACCOUNT

PARTICULARS AMOUNT IN RS. % OF SALES

20109 2010 2011 2009 2010 2011

SALES 4270.05 5125.08 6322.24 100 100 100

(-)C.O.G.S. 2733.14 3078.05 3944.06 64.01 60.02 62.39

G.P 1536.91 2049.03 2377.64 35.99 39.98 37.61

(-)ADV.EXPENSES 322.53 350.56 413.75 7.55 6.84 6.54

(-)S&D EXPENSES 228.88 274.74 317.47 5.36 5.36 5.02

(-)FINANCIAL EXPENSES 24.66 39.41 36.74 0.58 0.77 0.58

PROFIT 960.84 1384.32 1609.68 22.50 27.01 25.46

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10

CONCLUSION

Asian paints ltds progress is quite good. Its hardworking & support of

employee. It is international industry.The draft is increasing something like

employment income. If asianpaintsltd. continues in this manner for the coming

years .I can sure that it will become succession recently. I wish them every

success in their enslslavers to come.

The closely related risk, against which asianpaints, must hedge is to capture alarge market share over its competitors

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BIBLIOGRAPHY

For introduction of Asian paint limited = www.asian paints.com

For annual reports of the company =www.asianpaints.com

Ratio analysis=management accountancy (5th

edition)
http://www.asian/http://www.asian/http://www.asian/http://www.asian/