Project group no.7

1
A
PROJECT REPORT
ON
PREPARED BY : ROLL NO :
Paneliya Ketan 22
M.B.A SEM-II
ACADEMIC YEAR: - 2014-2015
GUIDANCE BY :
Mr. Nilesh Movalia
SUBMITTED TO :
K.K.PAREKH INSTITUTE OF MANAGEMENT
STUDY OF AMRELI

2
Preface
M.B.A. is course in which practical aspect in an important as theoretical aspect. M.B.A
is to develop effective managers and that require training as practical aspect. The growth of
economy is depends upon skilled managers and M.B.A. course fulfils this need. The practical
studies give an idea to the student about problem they have to face in the future of their
managerial life

3
Acknowledgement
To complete this report many persons have helped us. At the time of presenting this
report we thank to all who have helped Us to complete this report.
First off all we thank to Dr. Vishal Patidar the Director of K.K.PAREKH
INSTITUTE OF MANAGEMENT STUDIS OF AMRELI. And I also thank to Mr. Nilesh
Movaliya project guides for providing opportunity to prepare the report
Date: 22/4/2014 Signature
Place: Amreli

4
Content
Sr.no Particular
1. Introduction
2. Overview about company and its products and services
3. Financial analysis and it’s important for company
4. Financial statement analysis
5. Ratio analysis
6. Findings and suggestions
7. Conclusion
8. References
9. Annexure

5
Introduction
We are prepared financial report on asian paint this company is Indian large company
this company establish in Mumbai and founded 1942 this company find out product and
service,important,financial statement analysis as under capital structure ,dividend
policy,working capital management,ratio analysis,per share ratios,profitability ratio,leverage
ratio,combine leverage and payout ratio this company is all ratio find.

6
Company profile
Asian Paints Limited
Type Public
Traded as BSE 50082
NSE: ASIANPAINT
Industry Chemicals
Founded 1942
Headquarters Mumbai, India
Area served Global
Key people K.B.S. Anand (MD& CEO)
Products Paints and speciality products

7
Product and service
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. The company
manufactures body coatings and plastic coatings.
Paint brands owned by the company are: Ace & Apex, Apcolite, Apex, Apex Ultima, Asian
Paints, Colour Next, Premium Gloss Enamel, Royale, Royale Play, Touchwood, Tractor
Emulsion, Utsav.

8
Importance of asian paint company
 Asian Paints believes that internships are important, not just for you but, the
organization as well.
 We want young minds who can work on live business challenges and we trust our
interns to excel against all odds even if it may be the first time that they are taking
up such a high-impact challenge.
 This is again a program which has a long standing history and has been an
important revenue for us to identify and select our people.
 With our internship program, you will find yourself enriched by your seniors,
many of whom are alumni of your B-schools.
 Frequent reviews will help you to track your progress. Excel and you may find
that you have been rewarded with a PPO/PPI.
 You won't lack friends or mentors here, or opportunities for that matter.

9
1 .Capital structure
Year 2009 2010 2011 2012 2013
Equity Capital 10094.47 1557.22 1975.32 2487.78 3022.26
Debt Capital 65.29 66.29 64.13 168.22 46.76
Total Capital 10159.76 1623.51 2039.45 2656 3069.02
Interpretation:
Asian paint Company in capital structure was 2009 increase 10159.76 so, well for the
company. 2010 1623.51 in ratio is decrease is of company.
0
2000
4000
6000
8000
10000
12000
2009 2010 2011 2012 2013
Equity Capital
Debt Capital

10
2..Dividend Policy
Year 2013 2012 2011 2010 2009
Equity dividend 167.86 258.98 306.94 383.69 441.23
Interpretation:
Asian paint company in Equity Dividend 2009 year in highest ratio 441.23 for the last 5 year.
After the 2009 continues 4 yetheDividend tax was definitely decrease of company.
0
50
100
150
200
250
300
350
400
450
500
2013 2012 2011 2010 2009
Equity dividend
Equity dividend

11
3.Working capital management
Interpretation:
Asian paint Company in current Assets will be increase continuously after 2010. In 2009
compare the ratio then decrease the ratio in 2010 but 2010 after total net current ratio is
increase.
-500
0
500
1000
1500
2000
2500
3000
3500
4000
2013 2012 2011 2010 2009
Current
assets:loans,advances
Less:Current liabilities
Provision
Total net current assets
Year 2013 2012 2011 2010 2009
Current
assets:loans,advances
3644.14 2626.85 1,729.79 1364.85 1172.36
Less:Current
liabilities Provision
2579.26 2349.41 1849.61 1533.21 1034.92
Total net current
assets
464.88 277.44 -119.82 168.36 137.44

12
A.Per share Ratio
1. Earning per share
Year Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Adjusted EPS (Rs) 0.21 0.23 0.21 0.25 0.13
Interpretation:
Asian paint Company in earning per share is the ratio was continuously increase or decrease
by the continuously year. In 2009 the ratio was 0.21 and 2010 in the ratio was 0.23the highest
ratio for the last five year. 2010 in decrease the ratio was above 0.23 and 2012 in increase
above 0.25 Last 2013 in again decrease the ratio was 0.13 and the ratio.
0
0.05
0.1
0.15
0.2
0.25
0.3
Mar '
13
Mar '
12
Mar '
11
Mar '
10
Mar '
09
Adjusted EPS (Rs)
Adjusted EPS (Rs)

13
2.Dividend per share
Interpretation:
Asian paint Company Dividend per share was a . In 2009 in the ratio was highest as compare
to all five year in ratio. 2009 in 20 ratio and 2010 in 10 ratios so 2013 increase ratio 46.00 of
company.
0
10
20
30
40
50
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Dividend per share
Dividend per share
Dividend per share 46.00 40.00 32.00 27.00 17.50

14
3.Price earning ratio
Interpretation:
Asian paint Company Price earnings ratio was a changeable for the continuously five year. In
2009 was the ratio 3.02 and 2010 in increase the ratio was 2.01 but in the year 2011 the ratio
was increase above the 50% at 2.54 2012 in the ratio was some point increase as compare the
year was 2011 at 69.8 and also increases in the year 2013 at 2.88.
0
0.5
1
1.5
2
2.5
3
3.5
Mar '
13
Mar '
12
Mar '
11
Mar '
10
Mar '
09
Book value (excl rev res) per share EPS (Rs)
Book value (excl rev res) per
share EPS (Rs)
Book value (excl rev res)
per share EPS (Rs) 2.88 2.59 2.54 2.01 3.02

15
B.Profitability Ratio:
1: Operating Margin
Year 2013 2012 2011 2010 2009
Operating
margin
0.17 0.17 1.76 0.19 0.13
Interpretation:
Asian paint Company in Operating Margin ratio was at 2011year in 1.76 and increases the
margin ratio as compare to 2009 and2013it is decrease.
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2013 2012 2011 2010 2009
Operating margin
Operating margin

16
2.Net profit Margin
Interpretation:
Asian paint Company in net profit margin ratio was in2009 year is 7.97 lowest ratios for last
five year. 2010 in increase ratios. In 2011 net profit ratio was increase 2011 the 11.61 as
compare the 2011,2012 increase .
0
2
4
6
8
10
12
14
16
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar'09
Net profit margin (%)
Year Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar'09
Net profit margin (%) 11.54 11.38 11.61 14.29 7.97

17
3. Return on investment ratio:
Interpretation:
Asian paint. Company in return on investment ratio was in2009 year at 1.53 lowest ratios for
last five year. 2013 in increase 2.34 ratio. In 2011 return on investment ratio was decrease the
0.75 was comparing the 2010? 2012 increase the ratio at 1.76 and last 2013 in increase the
ratio was 2.34.
0
0.5
1
1.5
2
2.5
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar'09
Adjusted return on net worth (%)
Adjusted return on net
worth (%)
Year Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar'09
Adjusted return on net worth
(%) 2.34 1.76 0.75 1.09 1.53

18
C. Leverage Ratio:
1. Debt equity ratio:
Total debt/equity 0.02 0.07 0.03 0.04 0.06
Interpretation:
Asian paint Company in Debt - equity ratio was in 2013 year at 0.02 the lowest ratio for last
five year in 2013year decrease 0.02 ratio. In 2012 debt - equity ratio was increasing the 0.07
was compare the 2009 2012 increase the ratio at 0.07 and last 2012in increase the ratio was
10.07.
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09
Total debt/equity
Total debt/equity

19
2.Financial Leverage
FINANCIAL LEAVRAGE = EBIT /EBP
Interpretation:-
Asian paint Company in financial leverage was in 2009 year at 578.02 In 2013 year increase
at 1371.99. In 2011 financial leverage was increase the 1144.93 2012 increase the ratio at
1371.99and last 2013 in increase the ratio was 1516.71.
0
500
1000
1500
2000
mar'13
mar'12 mar'11 mar'10 mar'09
Series1
mar'13 mar'12 mar'11 mar'10 mar'09
1516.71 1371.99 1144.93 1013.86 578.02

20
3. Operating leverage
OPERETING LEAVREGE =CONTRIBUTION/EBIT
0.88 0.89 0.86 0.87 0.99
Interpretation:-
Asian paint Company in operating leverage was in 2009 year at 0.99 The lowest ratio for last
five year in 2011 year decrease 0.86 ratio. In 2012 was increase the 0.89 highest rates for the
year. 2009 increase the ratio at 0.99 and last 2009 in increase the ratio was 0.99.so, in this
chart in continuously increase or decrease.
0.75
0.8
0.85
0.9
0.95
1

21
4.Combined Leverage:-
COMBINE LEAVREGE =OPERETING LEAVREGE*FINANCIAL LEAVREGE
1334.71 1221.07 984.64 882.05 572.24
Interpretation:-
Asian paint Company in combine leverage was in2009 year at 572.24 the lowest ratio for last
five year. In 2010 year increase 882.05 ratios. 2011 year was increase the 984.64 2012
increase the ratio at 1221.07 and last 2013 in increase the ratio was1334.71 highest ratios.
0
200
400
600
800
1000
1200
1400
1600

22
D.Liquidity ratio:
1. Current Ratio:-
Interpretation:-
Asian paint Company in current ratio was in 2009 year at 1.13. The lowest ratio for last five
year in 2010 year decreases 0.89 ratios. In 2013 current ratio was increase the 1.18 was
comparing the 2010. 2012 decrease the ratio at 1.07and last 2013 in increase the ratio was
1.18.
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Current ratio
Current ratio
Year Mar'2013 Mar'2012 Mar'2011 Mar'2010 Mar'2009
Current ratio 1.18 1.07 0.93 0.89 1.13

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2. Liquid ratio
Year mar'13 mar'12 mar'11 mar'10 mar'09
liquidity ratio 0.61 0.57 0.34 0.38 0.59
Interpretation:-
Asian paint Company in liquidity ratio was in 2009 year at 0.59. The lowest ratio for last five
year in 2011 year decrease 0.34 ratio. In 2012 current ratio was increase the 0.57 as compare
the 2009 2010 decrease the ratio at 0.38 and last 2013 in increase the ratio was 0.61.
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Year liquidity ratio
Year liquidity ratio

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3. Inventory Turnover Ratio:-
Inventory
turnover ratio 6.06 7.56 7.08 7.95 9.80
Interpretation:-
Asian paint Company in inventory turnover ratio was in 2009 year at 9.80 2010 year decrease
7.95 ratios. In 2011 current ratio was decrease the 7.08 as compare the 2013 and also highest
ratio for the last five year 2009 year at 9.80.
0
2
4
6
8
10
12
Mar'2013 Mar'2012 Mar'2011 Mar'2010 Mar'2009
Inventory turnover ratio
Inventory turnover ratio

25
E. Payout Ratio:-
1. Dividend Payout Ratio:-
Dividend payout
ratio (net profit) 49.09 46.52 46.06 39.03 54.19
Interpretation:-
Asian paint Company in dividend payout ratio was in 2010 year at 39.03 and also highest
ratio for the last five year. 2009 year increase 54.19 ratios.
0
10
20
30
40
50
60
Dividend payout ratio (net profit)
Dividend payout ratio (net
profit)

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2. Financial Charges Coverage Ratio:
Financial charges
coverage ratio 54.76 53.34 75.34 56.68 39.57
Interpretation:-
Asian paint Company in financial charge coverage ratio was in 2011 year at 75.342010 year
increase and 2009 lowest ratio at 54.76.
0
10
20
30
40
50
60
70
80
Financial charges coverage ratio
Financial charges coverage
ratio

27
finding and Suggestion:-
We are finding the all ratio for Asian Paint Company
All ratios in some ratio in good position for the company and some ratio in also bed position
for the company but the company positivity is capital structure and current assets also
increase by the every year. So, this is a very good sign for the company.
Suggestion:-
Asian paint Company in increase the follow ratio:-
Financial Charges Coverage Ratio, Price Earnings Ratio, Inventory turnover ratio, Return on
inventory ratio, Dividend per share, Earning per share.
These are the ratio in needs for change in ratio so company going in growth and achieve more
and more profit for company.
Conclusion:-
The Project report gives me a great experience in visiting. ASIAN PAINT
COMPANY The project report helps me to improve my knowledge. We have heartily
thankful to Nilesh Movalia co-operate with me and my partners and have give me all
the information about his organization.
Reference:-
We are completed this project with the help of www.rediff money.com, www.asian paint

28
Profit & Loss account of Asian Paints ------------------- in Rs. Cr. -------------------
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 8,971.70 9,139.39 7,244.59 5,794.09 5,042.40
Excise Duty 0.00 812.31 638.57 426.37 532.28
Net Sales 8,971.70 8,327.08 6,606.02 5,367.72 4,510.12
Other Income 126.15 90.43 72.38 150.61 23.86
Stock Adjustments 175.91 143.78 157.54 130.83 0.61
Total Income 9,273.76 8,561.29 6,835.94 5,649.16 4,534.59
Expenditure
Raw Materials 5,361.00 4,866.63 3,812.47 2,966.23 2,641.09
Power & Fuel Cost 101.65 74.29 65.98 47.03 45.78
Employee Cost 404.59 343.51 302.34 262.73 239.77
Other Manufacturing Expenses 0.00 77.05 61.46 52.30 40.45
Selling and Admin Expenses 0.00 1,672.74 1,331.85 1,119.89 939.16
Miscellaneous Expenses 1,733.10 36.77 28.19 17.41 10.55
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 7,600.34 7,070.99 5,602.29 4,465.59 3,916.80
Operating Profit 1,547.27 1,399.87 1,161.27 1,032.96 593.93
PBDIT 1,673.42 1,490.30 1,233.65 1,183.57 617.79
Interest 30.56 27.88 16.34 19.10 15.91
PBDT 1,642.86 1,462.42 1,217.31 1,164.47 601.88
Depreciation 126.98 99.49 94.48 60.74 57.15
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 1,515.88 1,362.93 1,122.83 1,103.73 544.73
Extra-ordinary items 0.00 2.38 4.22 7.23 3.60
PBT (Post Extra-ord Items) 1,515.88 1,365.31 1,127.05 1,110.96 548.33
Tax 465.88 406.92 351.90 336.46 185.97
Reported Net Profit 1,050.00 958.39 775.15 774.50 362.36
Total Value Addition 2,239.34 2,204.36 1,789.82 1,499.36 1,275.71
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 441.23 383.69 306.94 258.98 167.86
Corporate Dividend Tax 74.29 62.24 50.11 43.33 28.53
Per share data (annualised)
Shares in issue (lakhs) 959.20 959.20 959.20 959.20 959.20
Earning Per Share (Rs) 109.47 99.92 80.81 80.74 37.78
Equity Dividend (%) 460.00 400.00 320.00 270.00 175.00

29
Book Value (Rs) 315.08 259.36 205.93 162.35 114.10
Balance Sheet of Asian Paints ------------------- in Rs. Cr. -------------------
Sources Of Funds
Total Share Capital 95.92 95.92 95.92 95.92 95.92
Equity Share Capital 95.92 95.92 95.92 95.92 95.92
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 2,926.34 2,391.86 1,879.40 1,461.30 998.55
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 3,022.26 2,487.78 1,975.32 1,557.22 1,094.47
Secured Loans 9.28 17.01 23.43 25.59 24.59
Unsecured Loans 37.48 151.21 40.70 40.70 40.70
Total Debt 46.76 168.22 64.13 66.29 65.29
Total Liabilities 3,069.02 2,656.00 2,039.45 1,623.51 1,159.76
Application Of Funds
Gross Block 2,803.73 1,659.51 1,611.22 1,194.39 1,116.93
Less: Accum. Depreciation 701.84 650.47 554.03 486.93 494.02
Net Block 2,101.89 1,009.04 1,057.19 707.46 622.91
Capital Work in Progress 52.55 827.30 67.32 380.72 164.64
Investments 449.70 542.22 1,034.76 703.69 234.77
Inventories 1,480.79 1,264.42 1,071.76 763.14 546.71
Sundry Debtors 633.88 500.24 366.68 331.43 311.02

30
Cash and Bank Balance 566.86 450.94 20.28 28.58 128.05
Total Current Assets 2,681.53 2,215.60 1,458.72 1,123.15 985.78
Loans and Advances 362.61 361.22 270.88 241.68 186.37
Fixed Deposits 0.00 50.03 0.19 0.02 0.21
Total CA, Loans & Advances 3,044.14 2,626.85 1,729.79 1,364.85 1,172.36
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,078.94 1,929.18 1,511.37 1,229.04 849.08
Provisions 500.32 420.23 338.24 304.17 185.84
Total CL & Provisions 2,579.26 2,349.41 1,849.61 1,533.21 1,034.92
Net Current Assets 464.88 277.44 -119.82 -168.36 137.44
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 3,069.02 2,656.00 2,039.45 1,623.51 1,159.76
Contingent Liabilities 464.28 414.71 505.87 223.80 356.87
Book Value (Rs) 315.08 259.36 205.93 162.35 114.10
Key financial ratio:
Mar
'13
Mar '12 Mar '11 Mar '10 Mar '09
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 46.00 40.00 32.00 27.00 17.50
Operating Profit Per Share (Rs) 161.31 145.94 121.07 107.69 61.92
Net Operating Profit Per Share (Rs) 935.33 868.13 688.70 559.61 470.20
Free Reserves Per Share (Rs) -- 249.31 195.88 152.29 104.05
Bonus in Equity Capital 97.98 97.98 97.98 97.98 97.98
Profitability Ratios

31
Operating Profit Margin(%) 17.24 16.81 17.57 19.24 13.16
Profit Before Interest And Tax
Margin(%)
15.61 15.45 15.97 17.94 11.80
Gross Profit Margin(%) 15.83 15.61 16.14 18.11 11.90
Cash Profit Margin(%) 12.93 12.50 12.92 13.42 9.40
Adjusted Cash Margin(%) 12.93 12.50 12.92 13.42 9.40
Net Profit Margin(%) 11.54 11.38 11.61 14.29 7.97
Adjusted Net Profit Margin(%) 11.54 11.38 11.61 14.29 7.97
Return On Capital Employed(%) 50.38 52.24 55.73 62.94 49.35
Return On Net Worth(%) 34.74 38.52 39.24 49.73 33.10
Adjusted Return on Net Worth(%) 34.74 38.30 38.90 42.79 33.85
Return on Assets Excluding
Revaluations
315.08 259.36 205.93 162.35 114.10
Return on Assets Including
Revaluations
315.08 259.36 205.93 162.35 114.10
Return on Long Term Funds(%) 50.38 54.51 55.79 62.95 49.35
Liquidity And Solvency Ratios
Current Ratio 1.18 1.07 0.93 0.89 1.13
Quick Ratio 0.61 0.57 0.34 0.38 0.59
Debt Equity Ratio 0.02 0.07 0.03 0.04 0.06
Long Term Debt Equity Ratio 0.02 0.02 0.03 0.04 0.06
Debt Coverage Ratios
Interest Cover 50.60 50.66 74.05 74.27 55.04
Total Debt to Owners Fund 0.02 0.07 0.03 0.04 0.06
Financial Charges Coverage Ratio 54.76 53.34 75.34 56.68 39.57
Financial Charges Coverage Ratio Post
Tax
39.51 38.94 54.22 44.73 27.37
Management Efficiency Ratios
Inventory Turnover Ratio 6.06 7.56 7.08 7.95 9.80
Debtors Turnover Ratio 15.82 19.21 18.93 16.71 16.02
Investments Turnover Ratio 6.06 7.56 7.08 7.95 9.80
Fixed Assets Turnover Ratio 3.23 5.23 4.25 4.68 4.18
Total Assets Turnover Ratio 2.95 3.22 3.33 3.40 4.02
Asset Turnover Ratio 3.13 3.55 3.61 3.86 4.17
Average Raw Material Holding -- 40.96 48.61 42.69 33.13
Average Finished Goods Held -- 44.69 44.60 42.38 31.72
Number of Days In Working Capital 18.65 11.99 -6.53 -11.29 10.97
Profit & Loss Account Ratios
Material Cost Composition 59.75 58.44 57.71 55.26 58.55
Imported Composition of Raw
Materials Consumed
44.05 25.57 23.86 20.74 19.49
Selling Distribution Cost Composition -- 17.11 17.08 17.51 17.27
Expenses as Composition of Total Sales 0.61 0.50 0.66 0.64 0.64
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 49.09 46.52 46.06 39.03 54.19
Dividend Payout Ratio Cash Profit 43.80 42.15 41.05 36.19 46.81
Earning Retention Ratio 50.91 53.21 53.54 54.64 47.00
Cash Earning Retention Ratio 56.20 57.63 58.63 58.43 54.09
AdjustedCash Flow Times 0.04 0.16 0.07 0.09 0.15

32
Mar
'13
Mar '12 Mar '11 Mar '10 Mar '09
Earnings Per Share 109.47 99.92 80.81 80.74 37.78
Book Value 315.08 259.36 205.93 162.35 114.10
Source : Dion Global Solutions Limited

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