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1 Certificate 2 Acknowledgement 3 List of figures 4 Chapter – 1 (Profile of the Company) 5 Chapter – 2 (SWOT analysis of the company) 6 Chapter-3: Analysis of Financial Reports.
List of figures Figure No. Title Page No. 1. Organizational Structure 2. The Process Flow of the Asian Paints 3 Graphs of Ratio
List Of Tables S No 1. 2. 3. Topic Page No Profit & Loss Account. Balance Sheet Cash Flow Statement.
Chapter-1 Profile Of The Company
TYPE Multinational FOUNDED 1942 HEADQUARTER Mumbai, India KEY PERSON Mr. P M Murthy, CEO , Asian Paints Ltd. INDUSTRY Chemicals, Paint & Resin Manufacturers PRODUCTS Automotive paints,Decorative Paints,Industrial Paints and Chemicals and Ancillaries Asian Paints Limited Asian Paints House 6A, Shanti Nagar, Santa Cruz(E) Mumbai-400055 India Tel : 022-39818000 Fax : 022-39818888 Asian Paints Helpline : 1800-209-5678 For shares related Queries, E mail to firstname.lastname@example.org For Customer Queries, E mail to email@example.com For all other Queries, E mail to firstname.lastname@example.org 1.1 Profile/Introduction 1.1.1. In 1st February,1942 ,Armed with little knowledge and great determination, Sh.Champaklal H. Choksey, Sh. Chimanlal N. Choksi, Sh. Suryakant C. Dani and Sh. Arvind R. Vakil get together to manufacture paint in a garage on Foras Road,
Bombay. They name their company 'The Asian Oil & Paint Company', a name that they picked randomly from a telephone directory. 1.1.2.. In 1945 , Asian Paints 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." 1.1.3. Asian Paints Ltd. has a combined turnover of 630 million US dollars. With its strong presence in the Indian subcontinent, south East Asia, Far East, South pacific Caribbean, Africa & Europe. Along with Asian paints the group consists of SCIB chemicals, Berger International & APCO coatings. Together the group has 30 manufacturing unit globally. 1.1.4. Asian Paints operates in 22 countries and has 30 paint manufacturing facilities in the world servicing consumers in over 65 countries. 1.1.5. The company was incorporated in the year 1942 in India. Asian paints have extensively computerized its operations in India using the cutting edge solution provided by SAP & i2. It helped the company drive benefits of faster market analysis for better decision making. 1.1.6 The Company's paint business in India consists of Decorative, Industrial & Automotive coatings. During the fiscal year ended March 31, 2006, paints accounted for 79.1% of the Company's sales. Decorative paints include wall finishes for interior and exterior use, enamels, wood finishes and ancillary products, such as primers and putties. Industrial Coatings comprise high performance coatings, powder coatings and auto refinish coatings. The automotive coating segments are catered to by the joint venture Asian PPG Industries Ltd. The Company also has chemicals businesses consisting of phthalic anhydride and pentaerythritol manufactured at Ankleshwar, Gujarat and Cuddalore, Tamil Nadu, respectively.
1.1.7. Asian paints’ wonderful promotional strategy helped the company to extend its business in several other countries with success. A very attractive distribution policies & proper distribution channel with more than 15000 dealers helped Asian paints to spread its business in more than 3500 big & small cities in India. 1.1.8. The Group's principal activities are to manufacture and market paints. The Group also manufactures Phthalic Anhydride and Pentaerythritol. The Group operates in Australia, Fiji, Solomon Islands, Tonga, Vanuatu, Myanmar, China, Thailand, Malaysia, Singapore, Bangladesh, Nepal, Srilanka, Bahrain, the UAE, Oman, Barbados, Jamaica, Trinidad, Tobago, Egypt, Mauritius and Malta
ourselves and those around .2. VALUES: Even though we frequently talk about mission and vision first. • To enhance their marketing in rural sector a huge amount investment is made in adcampaign and demonstration cum sales technique is going on. the company intends to build long term value in the Industrial coatings business through alliances with established global partners. • Company is trying to cutdown the inventory and improve the working capital cycle for a continuous production. the basic underlying foundations for both are our core values.2. Core values are extremely stable and change only very slowly over long periods of time. Their main objectives is on the following areas. Core values are the principles and standards at the very center of our character. • Company is using PC. • Asian paint is concentrating on the development of technological improvement in their Industrial Coating so that to make the product more stronger positon in the market.1. and from which we will not budge or stray.1. which have a dedicated marketing team is also targeting for a rapid growth in overseal market. V-sats based line and internal mesh to become most networked corporation in India. Simultaneously.2. • To increase its sales in the urban sector Asian paints today have 30 colour world located in different cities of India where any body can have the real taste of the colour. 1. • Online marketing has become an integrated part of the company and company is trying install a strong integrated for online marketing. VISION Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the higher growth emerging markets. Core values form the basis for our beliefs about life. • Asian paint is highly accepted in the urban sector and now the company is trying to access the rural market with low price product like Utsav targeting every customer of all income level. 1.2 Vision And Mission 1. • Asian paints international unit.2.3.
us. Product range Ancillaries Product Name: Asian Paints Deco prime Wall Primer WT .3. and the human potential of ourselves and others. Along with the above mentioned views . along with our skills and actions. Values and beliefs form our attitudes and guide our behavior. The behaviors we engage in are what people around us see. influenced by our environment and guided by our more stable core values and beliefs. Our outer or public shell of behaviors and skills can change rapidly and dramatically through our lives. Keeping in mind the values of oneself and believing in them. mother dairy focuses to: • Be aligned with the core values of both the individuals and the business • Be effectively communicated to and accepted by everyone involved in the company. asian paints also looks after the following aspects: • • • • • • • • Trust Openness Commitment Integrity Growth Orientation Quality Value For Money Customer Orientation 1.
Product Name: Asian Paints Wood Primer Description:Asian Paints Wood Primer is specially formulated to protect wood. Product Name: Asian Paints Acrylic Wall Putty Description:Asian Paints Acrylic Wall Putty is water_based putty.It has a good opacity & whiteness.It has an excellent sealing & filling properties which protects wood from swelling due to absorption moisture. Product Name: Asian Paints Decoprime Wall Primer ST Description: Asian Paints Deco-Prime Wall Primer (ST) is suitable for use as primerfor masonary topcoats like distempers. It is specially fortified with fungicides.It doesnot require any water curing.It is one of the best product of its kind available in the market. . alkali resistance.good resistance to wall alkalinity. which helps improve the appearance of the emulsion top coat. excellent covering.It seta fast.It provides a very strong durable foundation & brings out the best performance from the finish paints. quick drying & good sealing properties. emulsions.Exterior Wall Primers doesnot chalk & can be applied on freshly plastered surfaces that are adequately cured. moisture & fungus.lustre & matt wall finishes.both in looks & durability.It helps in providing a suitable surface for applicationof subsequent coats of putty & finish paint.has good sealing properties. Its special features are easy brushing.Wood Primer penetrates wood fibre & gives excellent adhesion to substrates & also serves as a sound base for application of undercoats & finishing coats.It also protects the finish coat from exudation of resinous matter oozing out from wood. Product Name: Asian Paints Exterior Wall Primer Description: Asian Paints Exterior Primer is water-based wall coating suitable for application on exteriors as an undercoat to exterior emulsions.Description: Asian Paints Deco-Prime Wall Primer (WT) can be used as primer for painting of water-based wall finishes such as distempers & plastic emulsion paints.
they can be used on all kinds of veneers & MDF surfaces Product Name: Asian Paints Exterior Sealer Description:Asian Paints Exterior Sealer is an acrylic copolymer-based surface conditioner for exterior surfaces.Cutting is easy & involves no strain Product Name: Asian Paints Wood Stains Description:Asian Paints Wood Stains hav been formulated specifically to impart colour to wood.It has high colouring strengtyh &mixes easily with cement.Product Name: Asian Paints Knifing Paste Filler Description: Asian Paints Knifing Paste Filler is used on metallic or wooden surfaces for filling of dents & other surface imperfections. .Also.On air drying or stoving. Product Name: Asian Paints Utsav Floor Colour Description: Asian Paints Utsav Floor Colour is a high quality oxidepowder. ensuring a uniform deposition of top coats.It is manufactured using genuine Oxide imported from Persian Gulf.which leads to lower absorption.Its brilliance & gloss keeps increasing with time.It has a butter like consistency & is easy in application.It is designed to penetrate into the exterior substrate & also improves adhesion of the Exterior Emulsion Paint topcoats.It is an under coat that provides good adhesion to the surface.it dries hard. thereby increasing the life of the entire paint system.It hasw good sealing properties.they offer4 uniform penetration along with a depth & clarity of tones that emphasises the natural pattern & character of wood grain.which keepsyour concentrate flooring looking attractive for years.it is UV light resistant & doesnot fade when exposed to sunlight Product Name: Asian Paints Utsav Primer (ST) Description:Asian Paints Utsav Primer (E3) is a Solvent-Based primer that can be used on cement as well as wooden surfaces.It is supplied at ready to use consistency but can be thinned easily to any desired consistency by using recommended thinner.it is a quality product available at economical price.
Valued by body repair shops. Nexa Autocolor brand is a market leader in markets including the UK.It has good whiteness.they mix well with all water based paints thus giving a uniform shade tone. Brazil. dealers and industry influencers in over 140 countries. flow & leveling. Malaysia. coverage. The paint on a vehicle loses gloss. processes and programs to help our customers continually improve the efficiency and profitability of their business. and Argentina. Spain. Nexa Autocolor stands for innovation in paint chemistry and leads the industry with products such as Aqua . Product Name: Asian Paints Utsav Metal Primer Red Oxide Description:Asian Paints Utsav Metal Primer Red Oxide can be used as an undercoat for ferrous substrates. a leader internationally in the refinish market. 2K Nexa Auto color 2K Nexa Autocolor® works in partnership with its customers to improve the profitability and well being of their businesses. Automotive The actual look and feel of a vehicle undergoes a sea of change over time.it contains high quality pigments which inpart high tinting strength.It has a good Anti-Settiling properties & offers good opacity. It’s no different in India ! The Nexa Autocolor brand. Manufactured at PPG’s plant in Stow market. England. is subjected to a lot of wear and tear and hence starts deteriorating. Asian Paints is not having a very good market share in this segment. China.Product Name: Asian Paints Utsav Primer (WT) Description: Asian Paints Utsav Primer (Water Thinnable)is a water based wall primer that can be usedv in interior masonary surfaces. France. Technical and training teams of PPG collaborate globally to develop innovative products. has a history of more than 100 years experience in the paint industry. Product Name: Asian Paints Utsav Stainer Description: Asian Paints Utsav Stainer is a high strength stainer which can be used with decorative interior water-based paints only. good coverage & flow & leveling properties. This experience has enabled us to gain a thorough understanding of our customers’ needs and the issues our customers face on a daily basis.
the first waterborne basecoat. Nexa Auto color continues to develop state-of-the-art processes while maintaining its reputation for high-level customer satisfaction. Quick and Accurate Colour Matching With over 100 years of experience in the paint industry. It comes as a fully integrated package of products. it uses smaller amounts of hardeners and thinners. which when mixed together in different proportions offer a wide variety of shades to the customer. Our Mission Innovative Repair Solutions With a track record of technical innovation and products designed for improved productivity and reduced material usage.quick and accurate colour matching with the right colour. • The same set of hardeners and thinners can be used for all the tintable shades on offer. it delivers fast processes. This is due to an advanced tinter based technology. right from bare metal pretreatment to plastic component systems through to polishing and finishing compounds. • It is supported by a global R&D and colour matching division. fast process times and top-quality results enable any collision center to achieve the highest levels of customer satisfaction . With the technology to colour-match even the most difficult of special-effect colours. High-Quality. Its comprehensive range takes care of all kinds of painting needs. The same product and shade match is available across the globe irrespective of which country your car comes from. Deltron is available on a mixing system with a range of tinters. This ensures that the cars finished in Deltron retain their superior finish even years after they have been painted . High-Performance Products The Nexa Autocolor 2K Product System is a complete line of high-quality products designed to bring profit to a collision center. • It is a very cost-effective system. Advantages of Deltron : • It is one of the best automotive refinish systems available in the world today. It is available in more than 40000 shades. every time. These tinters are mounted on a mixing rack that is installed at the shops of each Deltron dealer.base. • The colour centre in Mumbai ensures that all shade-matching problems are resolved at the earliest. ensuring further savings in costs. or which country it is bound for. Satisfied CustomersThe Nexa Autocolor 2K Product System was designed with the professional collision center in mind. the first time. Furthermore. and is suitable for all types of weather and environment conditions. which offers a superior coverage per litre of paint. • The clearcoats offer exceptionally high levels of gloss and mar-resistance. Simple and easy-to-use. It is a product sold in more than 40 countries around the world. Outstanding colour matching. Nexa Autocolor implements repair processes that reduce cycle times and increase profits.time after time. reduced material consumption and outstanding results. every time. Nexa Autocolor satisfies the number one need of the collision center . Deltron A premium 2-pack polyurethane based automotive refinishing system.
Delfleet is PPG's premium paint system for meeting the demanding needs and exacting specifications of OEM commercial vehicle manufacturers and fleet maintenance operations.the international range of Economy PU paint products is a complete system in itself. customers seeking a paint system configured to very specific performance needs will find that Delfleet offers a wide selection of topcoats.Bilux has more than 500 shades to offer in solid and metallic colours and this number is increasing by dozens every month. Moreover. this premier fleet coatings system is supported by one of the most comprehensive colour-matching systems in the industry. Whether it is superior chemical resistance or top-of-the-line gloss and durability. there have been several products specifically designed and modified keeping in mind the changing market trends. clearcoats and primers to choose from.Delfleet The latest advance in fleet coatings technology. Incorporating the very latest fleet coatings technology. More so. • High gloss finish • Superior durability • Ultimate product performance • Ease of application • Superior chemical and corrosion resistance • Comprehensive colour tools and training support Ideal for • OE truck manufacturers • Repair facilities for trucks and national fleets • OEM builders of: o Trucks o Buses o Airport ground equipment o Fire and Emergency vehicles Bilux Bilux . If you want . Here's what the Bilux range has on offer for you • Bilux Topcoats . painters will find that a Delfleet system is easy to apply and achieves exceptional colour match.
It has a long pot life. because of the high gloss level and its retention under both Bilux PU Clear as well as Bilux HG Clear. it has been specially pigmented to provide better filling. while still giving excellent dry film thickness. The distinctive attributes of Aspa are : • Unmatched coverage • Quick drying • High gloss level • Good Distinctiveness of Image(DOI) feature giving mirror like finish The product range is • Aspa Synthetic • Aspa Synthetic • Aspa Synthetic as follows : Putty Automotive Paint .A high performance undercoat for a variety of substrates providing excellent adhesion to topcoat. gloss level retention. o Bilux Epoxy Primer .An economical primer providing excellent anti-corrosion protection. With a network of over 1300 direct dealers spread across the country.Metallics .one of the bestsellers from the Bilux range due to its ease of application. its consumers vouch for its quality. Aspa is now available on the mixing rack. we can make it available for you in 3 days' time. It is easy to apply.a particular shade. They provide a hard glossy film that can be easily polished to remove dirt.This popular adage best describes AsianPPG's oldest brand in the automotive paints category which was integrated from Asian Paints. excellent coverage and the shade fidelity have resulted in Bilux Topcoats getting huge acceptance in the refinish industry. With technological advancement. Aspa Old is Gold . • Bilux Putty / Bilux Light Weight Putty . The dealers are therefore able to generate over 80 different shades by combining various base and tinters. sanding and smooth finish. The quality of finish. • Bilux Undercoats . sand and offers corrosion resistance and excellent adhesion to a variety of substrates. It can also be used on old finishes to prevent lifting.The complete Bilux System has the following to offer to you in terms of product range • Bilux Primers . It is designed to provide smooth laydown for minimal sanding. hence reducing wastage due to incorrect mixing. Since its launch in 1973. 45 shades in metallics and 85 in solids. o Bilux Etch Primer .Solids Automotive Paint .It is a fast-drying two-pack High Build Primer Surfacer specially formulated for new work. partly.e.Bilux range offers a host of primers to take care of the various requirements of each and every customero Bilux HB Primer Surfacer .Bilux Metallics have earned the acceptance that they have. • Bilux Clear / Bilux High Gloss Clear . Aspa (an Alkyd based product) won the hearts of all its patrons and continues to remain the market leader. spot repairs and complete re-spray.Two range of polyester putties to take care of different kinds of requirements . This brand offers variety of hues i.
Demand for decorative paints arises from household painting. putties etc. as compared to other periods. wood finishes and enamel and ancillary products such as primers. Decorative paints account for over 75% of the overall paint market in India. architectural and other display purposes. Exterior Walls Product Name: Asian Paints Ace Description:Ace Exterior Emulsion is a water-based exterior wall finish suitable for dry to moderately humid climatic conditions. This segment is price sensitive and is a higher margin business as compared to industrial segment. interior wall paints.• • Aspa High Gloss Clear Aspa Thinner DECORATIVE PAINTS Major segments in decoratives include exterior wall paints. Demand in the festive season (September-December) is significant. It offers excellent resistance to . Asian Paints is the market leader in this segment.
attractive. interior wall paint and gives walls a delightful.chalking. anti algal.modified acrylic. Its has very good dirt pick up resistance and dirt cleaning properties Cost Range: Premium Finish: Rich Sheen Availability: Across all Colour World Dealers. A timetested formulation with acrylic copolymer binder. high performance exterior wall finish. Its unique advanced anti algal chemistry ensures that exterior walls are provided with power-packed resistance aganist algae and fungi growth. matt finish that lasts for ages. its special formulation ensures . Cost Range: Mid-Range Finish: Rich Sheen Availability: Available through Asian Paints Project Sales Only. cracking and weathering in comparison to Cement Paint. It incorporates the latest state-of-the-art technology to provide long-lasting exterior performance even in the most extreme tropical conditions of india.5mm. Interior Walls Product Name: Asian Paints Tractor Acrylic Distemper Description:Tractor Acrylic Distemper is a water-based. Ace offers good anti-algal performance in dry to moderately humid climatic conditions. water-based hi-performance long-lasting exterior wall finish. Product Name: Asian Paints Apex Stretch Description: Asian Paints Apex Stretch Water Repellent Exterior Paint is a 100% acrylic. Due to the compactness Apex Strtech resists penetration of water caused by wind driven rain and is coupled with excellent anti-algal and anti-fungal properties. Cost Range: Economy Finish: Matt Availability: Across all Colour World Dealers. Product Name: Asian Paints Apex Ultima Description:Asian Paints Apex Ultima Advanced Anti Algal Weather Proof Emulsion is a water-based. Ace gives cleaner shades which do not fade and last longer. This has an in built elasticity (Stretches more than 150% of its original size) which with adequate dry film thickness can bridge hairline cracks in the plaster up to 0.
It is the most popular distemper brand in India and gives walls a finish that is good looking. durable and value for money. Asian Paints Tractor Synthetic Distemper gives a uniform matt film. Product Name: Asian Paints Utsav Synthetic Distemper Description:Asian Paints Utsav Synthetic Distemper is a water based finish which doesnot come off on hands or clothes like chunna. Cost Range: Economy Finish: Matt Availability: Across all Colour World Dealers. time-tested.It imparts a durable matt finish. Product Name: Asian Paints Tractor Synthetic Distemper Description: Asian Paints Tractor Synthetic Distemper is a water-based.which lasts all year round.shade retention for a long time and its fast drying property facilitates quicker completion of painting jobs. the paint film becomes harder over a period of time. Cost Range: Mid-Range Finish: Matt Availability: Across all Colour World Dealers. Being oil bound. which gives better washability and durability. which can be wiped with clean water. interior wall paint. Metal Surface .Utsav Distemper gives you a distemper finish at an economical price. Cost Range: Mid-Range Finish: Matt Availability: Across all Colour World Dealers.
wooden and metal surfaces. Recommended for interior surfaces. superi anti yellowing properties and a Unique formulation with anti fungal properties. It forms a tough film that is resistant to stains and water. which keeps the surface looking as good as new.This product is currently available in only Sparkling White. meets EN 71 standards. windows. Cost Range: Economy Finish: Glossy Availability: Across all Colour World Dealers. It has features like odour and fumes free. and provides a durable finish at economical prices.Product Name: Asian Paints Luxury Ultra Gloss Enamel Description:Luxury Ultra Gloss Enamel is an enamel with far superior performance parameters than conventional enamels. Cost Range: Premium Finish: Semi Gloss Availability: Available through Asian Paints Project Sales or Asian Paints Home Solutions Only Product Name: Asian Paints Utsav Enamel Description:Utsav Enamel is a solvent-based paint that gives a long lasting glossy finish. has low VOC. on metal surfaces like grills. furniture. furniture and on suitably prepared masonry wall surfaces. it can be applied on wooden surfaces (like doors. Wood Surface Product Name: Asian Paints Utsav Enamel Description:Utsav Enamel is a solvent-based paint that gives a long lasting glossy . cabinets). and is quick-drying such that 2 coats can be completed in the same day. Cost Range: Premium Finish: High Gloss Availability: Available in select markets Product Name: Asian Paints Premium Semi Gloss Enamel Description: Premium Semi Gloss Enamel is a safe and healthy water-based enamel which can be applied on suitably prepared masonry surfaces. Luxury Ultra Gloss Enamel offers Superior Gloss.
Kansai Nerolac is the market leader in this segment. Cost Range: Economy Finish: Glossy Availability: Across all Colour World Dealers. which keeps the surface looking as good as new. INDUSTRIAL Industrial: Three main segments of the industrial sector include automotive coatings. It has features like odour and fumes free. Recommended for interior surfaces. furniture. powder coatings and protective coatings. Luxury Ultra Gloss Enamel offers Superior Gloss.This product is currently available in only Sparkling White. cabinets). wooden and metal surfaces. User industries for industrial paints include automobiles . furniture and on suitably prepared masonry wall surfaces. and is quick-drying such that 2 coats can be completed in the same day. has low VOC. Product Name: Asian Paints Luxury Ultra Gloss Enamel Description:Luxury Ultra Gloss Enamel is an enamel with far superior performance parameters than conventional enamels. superi anti yellowing properties and a Unique formulation with anti fungal properties. windows. meets EN 71 standards. It forms a tough film that is resistant to stains and water. Cost Range: Premium Finish: Semi Gloss Availability: Available through Asian Paints Project Sales or Asian Paints Home Solutions Only. on metal surfaces like grills. Cost Range: Premium Finish: High Gloss Availability: Available in select markets Product Name: Asian Paints Premium Semi Gloss Enamel Description: Premium Semi Gloss Enamel is a safe and healthy water-based enamel which can be applied on suitably prepared masonry surfaces. it can be applied on wooden surfaces (like doors.finish. and provides a durable finish at economical prices.
offshore structures. Furthermore. pulp and paper industry. spillages of various kinds of chemicals also occur often weakening the reinforcement and concrete surface. refineries. At Asian Paints. They have excellent mechanical properties and . The APCOFLOR coatings are hard wearing. Weakening of the reinforcement and concrete surface due to chemical spillage and the possibilities of microbial growth are other significant drawbacks. so as to offer the right coating solution for your needs. Floor Coatings Concrete floors represent a significant investment for any industry. sugar. The need to protect the surface with a suitable coating is quite obviously there. Today the range of coatings find use across diverse industries such as nuclear. abrasion resistant coatings available in wide range of attractive colours. An increasing awareness of the limitations/drawbacks of concrete flooring is now resulting in wider acceptance of floor coatings.engineering and consumer durables. heavyduty coatings. resulting in unappealing patches. chemical. Asian Paints Protective Coatings are tested under extreme conditions to ensure that they are durable and can withstand the vagaries of the different climatic conditions. The industrial paints segment is far more technology intensive than the decorative segment. it is often the most neglected and abused part of the structure. Despite this. petrochemical or fertilizer plants. Limitations include the accumulation of dust due to the formation of laitance and difficulty encountered during cleaning owing to surface texture. Therefore asset owners are looking at specialised protective coatings specific to their requirements. concrete floors are aesthetically unappealing making the workplace dull. thermal or hydel power plants. PROTECTIVE COATING Protecting industrial assets is increasingly becoming critical owing to rising asset costs. Apart from the mechanical abuse. the presence of cracks and surface porosity allows various oils to seep in. harsh weather conditions and mounting chemical pollution. designed to protect assets against the specific corrosive environment they are exposed to. pharmaceuticals etc. Protective Coatings from Asian paints offer a choice of high-performance. Apart from these. We perceive this to be just the right environment for Asian Paints to demonstrate its growing technical strength. we understand the specific environment that your assets are exposed to.
1981 (Amended 1993) . apart from protecting the concrete surface. "Specifications for Road and Bridge Works" of Ministry of Road Transport & Highways. They are safer to handle as heating is not required. Asian paints commands market leadership in the field of thermoplastic road markings. .4. fast drying highly durable 100% acrylic retro-reflective water borne paints and conventional water / solvent based road marking paints.Specification for ready mixed paint for road marking. These represent a generational shift in markings. They take less time for application as can be sprayed by Air / Airless spray machines leading to lower disruption in traffic movements. APCOTRAK range of coatings includes coatings such as water based road marking paints conforming to IS-164. they also serve as a tool for controlling. its importance is indisputable. Markings signify the delineation of traffic path and the lateral clearance from traffic hazard for the safe. APCOMARK range of markings includes hot applied retroreflective thermoplastic road markings conforming to clause 803. THERMOLINE range of markings include hot applied retroreflective thermoplastic road markings conforming to BS 3262 specifications Asian Paints also offers Type 2 Retro-reflective Drop-On Glass Beads conforming to BS 6088 specification. They. These include hot applied retroreflective thermoplastic material. APCOMARK has been widely used in the famed Golden Quadrilateral and NSEW project of NHAI and on various national and state highway projects across the country. Road Markings Road markings are the silent custodians of road safety in this era of four and six lane highways. help tide over the limitations without affecting the intrinsic strength of concrete floor. Though the cost of road markings is fractional in comparison to the cost of the road. Asian Paints offers a variety of road markings. Do not soften on environmental heat and hence dirt pickup is eliminated. Often a key parameter used to judge the road quality is the quality of the installed road marking. Apart from traffic guidance.provide floors that are tough and long lasting. very ideal for edge lines on highways and apron / taxiways at airports. provide very high retroreflectivity. smooth and orderly movement of traffic. warning and providing information to road users. fast drying highly durable 100% acrylic retro-reflective water borne paints. ordinary water based road marking paint and the 3rd generation road markings: APCOTRAK WBR.
a. . with a turnover of Rs 36.85% from Rs. for a company can go only as high as its people aim.1. we absorb the best talent from some of the best management and technology institutes in the country. Turnover Asian Paints’s turnover has been growing at the rate of 11. Excellent training is provided to develop leaders and re-strengthen competencies from within the organisation.5x FY10E earnings per share.APL’s dominance in paint industry and presence across all segments will enableit to maintain the margins going forward. A sense of ownership and freedom to experiment at their workplace brings out creativity and innovation in every individual. Assuming thecountry GDP grows @7.5.0x FY09E & 19.4. mn) to 61. But now they have divided it into three section each. This was to be done through: • Common branding . Asian Paints is India's largest paint company and the third largest paint company in Asia today.85% (CAGR) over the last 3 years and is expected to exceed Rs. Asian paints the leader in Indian paint Industry has a very strong marketing division. Previously company used to function as undifferentiated organization.7 billion by end of 2010. and who engineer the efficiencies that make a business succeed.The Indian Paint Industry growing at 1.6. With more than 35% market share Asian paint is still growing in leaps and bounce to achieve higher targets. 156. Valuations We expect the company to register a 3-year EPS CAGR of 28. performance oriented and agile company. And each section has its own independent support system. 112 billion to 156. Objectives and Business Philosophy of Asian Piants 1. Organizational Structure in Asian Paints 1.7 bn in FY10E.6. It is people who innovate and invent.7 FY10E. 112 bn. A talent pool of over 4700 employees employed across 23 countries bring in a unique blend of mindsets and skills. from FY08Eto FY10E is around 255450 tonne. our human resources systems are designed to create a focused. the Indian paint industry is expected to grow ata CAGR of 11. mn) of 23x) on account of robust domestic demand for decorative paints.2% from 29. At CMP of Rs. Besides encouraging achievers from within the organisation.0 the stock is trading at 25. We initiate coverage on Asian Paints Ltd with a BUY recommendation and price-objective of Rs.3 in FY07(Rs. It is changing fundamentally with two objective in mind a huge ramp in the market share and better growth over the next three years. Size of Organisation Manpower Asian Paints believes that people are its strongest assets. At Asian Paints. targets and performance parameter. in FY07 to Rs.5 times the GDP growth.1.1419 (implying a forward P/E multiple (Rs. 1200.In order to cater the incremental demand of the domestic paint industry.5% p. totalcapacity addition coming upstream in over the period of two year i.7 billion (around USD 851 million).e. Out of this incremental supply around 82%will be contributed from APL resulting in increase in market share from 37% inFY07 to 42% in FY10E. It is they who drive growth and lead to greater heights. 1. An open and interactive work culture brings out the best in our people.
1.2. 6. 1. Besides. Asian Paints Limited (APL) incorporated in 1942 ranks among the top ten decorative paint companies in the world. 1. The company has an enviable reputation in the corporate world for professionalism. According to the company it feels that picture are more dominant than name. The ‘AAA’ rating assigned to the Rs 850 million non-convertible debenture issue of Asian Paints (India) Ltd (APIL) has been reaffirmed. Simultaneously.7.• • • Centralized marketing Centralized quality control Centralized purchases 1. Market share and Position of the Company 1. fast track growth. • Asian paint is now targeting to provide paint solution with insurance. Asian Paints operates in 21countries and has 29 paint manufacturing facilities in the Industry: world servicing consumers in over 65 countries.7. APL has its presence in almost all the segment through its brands Royale in the premium segment. the Company operates around the world through its subsidiaries Berger International Limited. It has presence in decorative and industrial coating segment of the paint business.2. The ‘P1+’ rating assigned to the Rs 500 million Short-term Debenture Programme of the company has been withdrawn. 11 per share (110 %).7. in the lower segment.50 per share (175%). the ‘P1+’ rating assigned to the 700 million Commercial Paper Programme has also been reaffirmed.6. Utsav and 3Mango etc.7. Gattu. Apco Coatings and SCIB Chemicals. Asian paint is following unlque strategy of marketing in the rural areas by using their official mascot. • Asian paint website Asian paints com provides several information regarding the product and various other information that is being required by customer and dealer. Apcolite in the mid-segment. and building shareholder equity. Tractor. 17 per share (170%). The Process Flow of the Asain Paints 1. The total dividend distributed in FY2008 was Rs.3 The Board of Directors recommended the payment of final dividend of Rs. An interim dividend of Rs.50 per share (65%) was distributed in Nov’08 Thus total dividend announced for financial year 2008-09 will be Rs 17. .
6 kgs in China and 22 kgs in the developed economies. Tarjani Vakil – NS (Subba) Iyer – Sudipto Mandal – Salil Chinchore – Jagannath B – Nilay Verma – Mr.5 The market size of the Indian paints sector has been pegged at Rs 134 bn in value terms and is very fragmented. Mauritius and Nepal.Phthalic anhydride and Pentaerythritol.6%. Berger Paints (19% market share) and ICI (12% market share 1. India's share in the world paint market is just 0. The company has five manufacturing units which are located at Mumbai. Middle East.25.000 tonnes per annum and is seasonal in nature. there are about 2. The unorganised sector controls around 35% of the paint market. The per capita consumption of paints in India stands at 0. Asian Paints product range includes Decorative Paints.6 billion. In addition. Each plant is headed by the Factory Manager.1. the growth stood at 15% YoY. Bhandup plant is the oldest plant with an installed capacity of 30000 Tonnes per anum. with the objective to establish itself in the fast growing powder coating segment. through its 50:50 joint venture (Asian PPG Industries Ltd) with PPG Industries Inc USA. All plants are also awarded with ISO .5 kg per annum as compared to 1. Patancheru. Industrial Paints & Automotive Paints. with the organised sector accounting for the balance. the industry grew by 18% in FY08. Kansai Nerolac (20% market share). also operates in the automotive paints segment 1.Human Resources Senior HR Manager General Works Manager Manager-Production Marketing manager Sr.8. Mr. Fiji. While in value terms. The current demand is estimated to be around 650. in volume terms. It ranks amongst the top ten decorative coatings companies in the world today. with a turnover of Rs.7.4 APIL is primarily engaged in the manufacture and sale of decorative paints. Present Leadership P M P M Mr. Ankleshwar.9. Kasna and Sriperambdur. APIL has acquired the powder coatings business from Hawcoplast Chemicals. Asian Paints operates in 22 countries and has 28 paint manufacturing facilities in the world servicing consumers in over 65 countries. Abhijit Bhattacharya – 1. The company also has an international presence through its subsidiaries in Sri Lanka.7.000 units having small and medium sized paints manufacturing plants. APIL. In the unorganised segment. During 2001-02. Historical Background of Asian Paints Asian Paints was founded in 1942 as a small partnership firm & now is India's largest paint company. Australia. Top organised players include Asian Paints (30% market share). Manager-Training Ms. Murthy Murthy Ashwin Ashwin – – Choksi – Dani – CEO Managing Director Non-Executive Chairman Non-Executive Vice Chairman Chairperson of Audit Committee General Manager . the company is integrated backwards for manufacture of two major intermediate chemicals .
It is an unique way of promotion. With huge ad campaign support behind the product the company is able to making a brand name in the mind of customer. Asian paint had established 30 colur world through out the country giving the people real taste of colour. All the customer could easily access the product of Asian paint anywhere and any time. Their particular ad campaign ‘Mera Walla Blue” “har ghar kuch kehta hia” are being liked by the customer. “Five star rating” by British safety council in 2003 & 2005. It had a sell over 300 million litres of paint in 2005-06. sales promotion. 1.10. In achieve the current position a lot things are being done by the Asian paints. The promotion strategy of Asian paints is bringing a lot of positive output to the company. A total amount of 85 crores is spent ont eh ad campaign by asian paint. Campaign.2 Asian paints is dominating the television advertisemnt by increasing other ad campaign cost over 50% from next year. “Best supply chain” award by i2 solutions. Product and Process Technology .1.10. Strong brand equity & largest distribution Network has acquired the number one position in Decorative segment in India.10. direct marketing and public relation.3 Online marketing for urban customer: Asian paint online marketing system is helping company in lot of ways many customers all the necessary information to the customer. 1. “Golden peacock” national quality award by union labour ministry. Significantly the group has crossed the Rs. personal selling. Industrial & International business is one of the largest paint company in India.11. automobile OEMs & refinishes. Asian paints limited with its three business units decorative. Asian paint with its natural competitive advantage of size (Number 1 in India). The punchline for the colour world is “Jahan Milen world ke saare colour” Asian paint has large area of Network of distribution.9000 & ISO 14000 certification. It has almost retail outlets through out the country situated in the different city of India. “Golden peacock environment management award”. 1. wood finishes.10. “Best small company in India” by Asia Money in 2002. Asian paints the market leader of the decorative segment in the paint market of the India. Company is using different techniques such ad.3000 crore turnover mark-a preset mile stone for the company. Asian paints has won many awards & recognitions which includes rating under “200 best under a billion” by Forbes global in 2002. marine & Industrial coatings. Advertisement and Promotion by Asian Paints 1. 1. The product portfolio of the Asian Paints group covers a large spectrum of finish coasts & ancillary products in decorative paints.
nerolac. Company follows the principle providing the customer different kind of products and different price. Products of Asian paints in decorative segment : As Asian Paint is the leader in the decorative segment in the Indian paint market it has wide variety of product. This sector is emerging market in India. In these segment the product are normally sold at the premium price. In this segment Asian Paints targets to industry where the paint are used for protective coatings of the machinery. 201 where the product like GATTU and Utsavfamily product are targeted to lower income segment people the cost varies from Rs. Asian paint in these sector is behind its competitor Nerolac. Products : The products of Asian paint in this segment are (1) Allumium Paint (2) Fibre Paint (3) Apcolite Hammertone finish . Road mapping and various other industrial uses. In company’s Decorative premium sector company have products like Asian paint Royals and Asian paint Emulsion. These segment is slowly being emerging great user of paint in the Indian market previously automotive company used to import the product from other country. The cost of the produce of Asian paint varies according different income level of the consumer.15 – Rs. Their product were targeted to the different segment of the society.275 and the latter Rs. Products of Asian Paints in Industrial sector : it is the second category of the product that Asian paint produces. But now some companies like Asian paint.Asian paint produces a wide range of products which have more than 1100 shades. Berger have their products in this segment. The products are (i) Apcomin Synthetic Enamel (ii) Apcomin Synthetic Powder (iii) Stainer (iv) Premium surface & fillers Product for automotive sector : This is the third category of product which is produced by Asian paint. 20. The cost of these product is Rs. Now Asian Paints is trying a lot to improve the product technology and by bringing new product in this sector to compete with its competitor. The products are : (i) Asian Paints Royale (ii) Asian Paints Premium Emulsion (iii) Asian Paints Apcolite Premium Enamel (iv) Asian Paints Gattu Synthetic (v) Asian Paints Utsav Enamel (vi) Asian Paints Trator Acylic Distemper (vii) Asian Paint Utsav Acrylic Distemper (viii) Asian Paint Apex (ix) Asian Paint Ace (x) Asian Paints Tractor Synthetic Distemper. .
Asian paints. The company recently augmented their web pressure. the Asian paints official Mascot is a familiar icon across India. In Industrial sector their supply chasing demand strategy accumulated lot of inefficiencies. (i) Decorative (ii) Industrial (iii) Automotive. Asian paints.com is an exhaustive hub of ‘Painting solutions’. despite a strong brand name has grossly underutilized its potential in decorative paints. GATTU. online shades cards. In industry they are recognized as trailing firms. So they want to upgrde the equipments to improve efficiency in manufacturing & secondly they are taking advantage of IT to improve over all efficiencies. Asian paints have created a platform where Talent is shared across the organization as Managers are given in different areas of operations. There are three main Players is this sector we can rank the competitors of Asian paints as : i) Nerolac paints (ii) Berger Paints (iii) ICI Paints. so there is a scoe for cost reduction.13. the market leader in the Indian paint market segmented their products mainly in three sectors. Now we are considering individual strategies of the three companies. It always have strong belief in individual ability and creating an environment in which an entrepreneurial spirit in encouraged. Initially one common strategy must be their mind – is to increase the market share. So. Asian paints has stressed on employee development and creating leaders of tomorrow. other words interior paints. Asian paints have invested heavily in branding. But with their high growth in the industry the competitors can touch or even overtake Asian paitns. They are installing colour dispensing machine across the country. Diversification Moves by Asian Paints Although operating in commodity market. All their business strategies mainly rounded this two issues. But in industrial paint sector it is far ahead of other competitors.12. 1.1. Their customers are all also segmented based on the usage of these products. Nerolac Paints : Nerolac. The site use Maximum interactivity to enhance user experience. So now set up is needed as well as they are concentrating on enamels. cost calculation (based on floor area and number of rooms dealer locator and a short of other innovative services. Major Players In the Indian paint industry Asian paints is the leader keeping the other competitors far behind. The different strategies they are dealing with : (1) They want to see high growths from decorative segments. . (2) In decorative segment. Customer segmentation is the most important part of the marketing strategy of any company. It gives Asian paints on overall good perspectives of business along with challenges of chandelling new Ares of operations. they are logging behind the demand. (3) Concentration on emulsions & distempers. its two main targets are : i) to keep hold of the Industrial paint market ii) increase the market share in Decorative paint sector. There are painting lips. for that the three main competitors have different strategies. This is why Asian paints have believed to be a best employees for personal and personal growth. Their website.
iii) They are looking to export in nearby countries such as Bangladesh. Though ICI is considered as the 4th paint against in India. vi) Berger had ticups with Nippon paints of Japan & orica of Australia. Nepal to boost its revenue. Bhutan. vii) An establishment of new plant in Russia was done in 2005. which is expected to start production by the end of 2006. (iii) Improving technology & offering better quality at a moderate price will help to capture the rural market easily. (ii) Considering the increment of channel partners. ICI Paints : Within 3 years of launch of colour future from ICI it proved to define the International interior designing trend. While company’s main strength is in decorative sector. Which helps to forecast the international colour trends in paints. To improve its business the company have some strategy : i) Company is mainly spreaded in Eastern & Southern part of the company. Here they are already established but Asian paints is also targeting this sector heavily. but its presence & development can be a threat to the others. now it is looking for a rapid expansion at the western region also. Here they would like to go for the branding of products through proper advertisement compaign & with their new logo. The company has invested a million dollars in the R&D of the colour futures concept. v) Berger’s performance in Automotive sector over the lst few years has been fairly. . it has been actively pushing its presence in the industrial paint segment. The company is slowing penetrating to both of decorative & Industrial paint segment.Distinguishing the high – low end products. Here also they are targeting to build up some tie-up with automobile companies. Keeping this in mind company has targeted a 15% share of Industrial paints in the company’s product mix. (4) They want to concentrate also on the automobile paint industry. company is likely to utilize the Russian plant to cater to the markets of CIS countries in the future. Berger Paints : Berger paints is considered as the dark horse of paint industry. As a part of its strategy ICI is taking the measures : (i) It is not looking at the increasing Investments but focusing on debottenecking the capacity. Industrial paint segment has a higher growth rate. Berger is targeting the rural market. (iv) Improved service & solution to the customers. ii) Recognizing the saturation of the urban market. iv) Within the paint industry.
By personal interaction with the public relations officer of the organization concerned.14. CHAPTER-2 SWOT Analysis of the Company . Source Of Data Collection Official website of ASIAN PAINTS.1.
SWOT analysis is done for a company. 2. Strengths: 1. straightforward model that provides direction and serves as a basis for the development of marketing plans.1.SWOT ANALYSIS OF ASIAN PAINTS SWOT analysis is a basic. Weaknesses. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). covering all segments and filling all gaps. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). Threats and opportunities leading to gauging the competitive potential of the company. Here SWOT analysis of Asian Paints is made to understand the positioning of the company better. to find out its overall Strengths. semi-urban and rural areas. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. Market leaders with 35% market share in the organized sector. For example. the closest competitor does not have even half of AP’s share. they have brands in different price slots like Utsav for rural lower-end markets and Apcolite for high end-markets. SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. . Comprehensive nation wide coverage of the market – urban. 2. They have quite a number of brands.
It has a country wide distribution 6. AP is found everywhere. They have an enviable track record in breaking the position of MNCs in the Indian paint industry. 8. In industrial paints. ROI of AP is 40% while ROI of the rest of the industry is 22%. Corporate reputation has been a major strength for AP. 10. Strong in inventory control. Unlike its competitors who concentrate only in urban areas.000 dealers spread all over the country. high reliability in suppliers. A network of 13. High caliber human resource. as a proportion to total number of employees. They have won many accolades and awards. superior in quality assurance. The pricing strategy is oriented to middle/lower end consumers. 8 different pack sizes. The nearest competitor has less than 8. AP has 45% edge in inventory carrying costs. is most popular and easily recognized. AP has only a 15% market share. IDBI study rated AP as one of India’s most excellent companies. 12. an impish boy with the paint tin and brush. It is far behind the . shades. Weaknesses: 1. 9. 4. 2. AP is quite strong in production-marketing coordination. 7. The image is that of a successful and well-managed company. pack sizes .000. 5. 11. they have large network of regional offices and company depots and sales personnel to service the nationwide dealer network. Their policy of offering tailor-made products to suit customer need has resulted in an ever growing product range. 1995 Corporate Excellence Award from HBSA and ET.40 different decoratives. Widest product range in terms of products. For this.3.2. For example. AP’s logo ‘Gattu’. 13. no outsourcing. employs maximum number of MBAs. Net worth of Rs 204 crores against Rs 58 crores of Goodlass Nerolac and Rs 41 crores of Berger. Leader in profit and operating margins. some in 150 shades. APs average inventory level is 28 days sales against 51 days for the industry. another study rated AP among top 5 paint manufacturers in the world. In-house production.
4. . 6. Goodlass Nerolac has a tie-up with Kansai paints. For example. 3. It shifted to a predominance in industrial paints than industrial paints than in decorative paints as was evident from the production figures of 1995-96. USA for heavy-duty coatings and Teodur NV. Goodlass with its Kansai connection finds it easy to tap Maruti in India. Ever expanding product mix throws some strain on inventory management. No tie up with foreign manufactures. Germany. Japan. Valspar Corp. 7. which has a market share of 43%. 2.leader Goodlass Nerolac. 3. Berger has a technical tie up wuth Herbets. 5. Holland for powder coatings. Opportunities: 1. Since this is going to be the major growth segment in the future.3. 2. which has provided the company with Cathodic Electro Deposition (CED) technology. accounting and administration. Innovation in developing new products is adequate. Widening product mix puts strain on production distribution. Acquiring/ increasing market share in Industrial paint sector. AP has not been able to make any significant advances either with Maruti or the auto segment in general. The automobile industry accounted for 50% of the industrial paint market. Seasonal demand and hence in off seasons it can lead to cash flow problems. AP has a major weakness on the technology front in industrial paints. a lag in this segment will end up as a major weakness. Developing market in automobile industry. Most paint firms have technology tie-ups with manufacturers abroad. It has maintained a product profile keeping the market trends in picture. for automotive paints. Through it has units in several countries 2. 4. which accounts for 50% of Industrial paint market. Since Kansai is the supplier to Suzuki. AP has always encashed on opportunities that have come its way.
Competiton is catching up fast. hi-tech facilities gives abundant choices. J&N’s instacolour offers 626 shades. 4.2. Domination of few foreign companies. Since both Goodlass Nerolac (43%) and Berger’s (14%) have a higher market share than AP’s (14%). it is possible that in the future. 5. ICI’s Touch Colour and Berger’s Colour Bank are indicative of this. The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Automated paint blending in retail points already there. Strengths and opportunities are fundamental and weaknesses and threats are transitory.4. Competitors have gone in for hi-tech with instacolour spot mixing. 2. they may capture the entire industrial paint market. innovative approach (in product lines and marketing) and values (of quality/ethics). 3. Threats: 1. For example. . Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks).
but it was the man who invented the meter that really made the money.Benjamin Franklin discovered electricity. CHAPTER-3 ANALYSIS OF FINANCIAL STATEMENTS .
68 694.27 Uses of funds Fixed assets Gross block 1.16 526.034.76 254.70 Less : revaluation reserve Less : accumulated depreciation 494.91 428.88 28.23 Capital work-in-progress 164.87 222.005.90 851.20 959.77 422.21 686.20 .15 597.30 Loan funds Secured loans 24.02 509.20 959.47 Net block 622.28 703.76 1.93 937.06 89.55 832.68 Total 1.87 12.172. loans & advances 1.26 183.90 851.70 40.05 180.01 197.25 92.22 187.91 300.116.90 31.26 148.71 401.70 36.39 274.86 637.22 869.92 95.20 736.20 959.83 334.53 Investments 234.47 Less : current liabilities & provisions 1.50 Contingent liabilities 356.31 5.Balance Sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital 95.02 158.159.36 1.17 163.15 596.44 17.40 542.58 648.70 40.92 95.36 476.43 Net current assets Current assets.005.38 Total net current assets 137.76 1.08 Miscellaneous expenses not written 24.70 40.50 257.159.14 712.64 136.06 471.94 166.26 Total 1.29 435.68 694.86 637.89 806.92 1.43 311.92 95.83 Number of equity sharesoutstanding (Lacs) 959.25 16.39 345.75 55.88 334.035.91 Market value of quoted investments 178.27 Notes: Book value of unquoted investments 157.92 Share application money Preference share capital Reserves & surplus 998.37 Unsecured loans 40.017.20 959.92 95.55 258.70 66.59 36.
58 150.91 -1.77 Non recurring items -11.06 -82.12 0.125.18 Cash and equivalnt begin of year 41.08 96.747.92 -105.34 Personnel expenses 239.20 382.72 17.45 Net cash used in investing activity -16.99 117.12 3.69 2.11 2.80 Net cashflow-operating activity 325.29 312.12 64.91 -110.06 124.89 270.28 Expenses Material consumed 2.49 436.20 272.09 2.16 6.73 Other recurring income 35.365.04 2.30 1.78 2.29 366.19 3.98 Adjusted PAT 370.35 42.73 24.55 Cash and equivalnt end of year 128.34 8.66 1.55 409.77 195.39 172.04 Other non cash adjustments 3.47 269.48 1.97 334.05 286.36 2.86 337.640.026.23 75.58 Depreciation 57.83 Adminstrative expenses 170.595. activity -221.74 1.06 -34.53 267.77 45.29 Adjusted PBT 556.78 173.92 304.86 163.48 Equity dividend 167.86 220.97 186.58 508.77 16.78 255.38 2.04 304.90 91.05 49.63 50.52 1.39 25.42 239.62 Expenses capitalised Cost of sales 3.53 27.953.052.61 391.37 139.23 -110.82 53.70 119.77 1.08 Netcash used in fin.82 CASH FLOW Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Profit before tax 547.19 Net inc/dec in cash and equivlnt 86.55 Operating profit 593.60 -2.82 12.25 218.91 13.73 .53 47.88 564.081.26 41.69 -331.50 563.19 407.91 -0.97 -73.32 25.23 Financial expenses 15.49 28.78 1.12 21.36 525.60 129.46 15.20 101.05 186.661.13 Preference dividend Dividend tax 28.54 Retained earnings 365.93 32.47 1.52 -187.969.53 376.35 Selling expenses 779.06 151.33 Reported net profit 362.40 Manufacturing expenses 86.34 646.61 Other write offs 2.21 457.510.447.Profit and loss Account Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income: Operating income 4.42 45.42 468.00 110.48 Earnigs before appropriation 562.53 2.35 42.15 43.49 28.14 14.33 126.39 25.517.76 Tax charges 185.916.69 156.36 375.66 139.16 326.43 118.56 620.54 155.61 -126.50 Adjusted PBDIT 629.93 569.88 423.76 352.
In other words.14 in 2007 and decreased to 0.59 in 2007 and it has increased to 0. 2.06 in 2008 which indicates that the utilization and management of resources is has decreased as in the previous year.02 in 2008 which indicates good investment policies of the management and good inventory control.08 0.81 Comments 1.24 • 0. A current ratio of 2 is normally considered satisfactory.02 0.Ratio Analysis 1. Profitability Ratios 08 07 07 0.81 in 2007 and it increased to 3.59 Liquidity Ratios 08 Current Ratio Quick Ratio 07 1.24 in 2007 and it has decreased to 1. The company had a fixed asset turnover ratio of 3.97 in 2008 which indicates efficient utilization of fixed assets by the company. Current ratio of the company is 1. 3. Long term debt ratio expresses a relationship between debt and the equity.47 in 2008 which indicates there is not overstocking by the management of the organization. The company has total debt equity ratio of 0. In other words.47 Comments 1.07 in 2007 and it decreases to 0.06 0. Quick ratio of the company is 0.14 .08 in 2008 which means that company’s shareholders funds has increased but total long term debts remain unchanged.97 3. it indicates that the company’s shares have not been favored by investors. Fixed assets turnover ratio indicates a relationship between net sales and net fixed assets. The company has a debt equity ratio of 0. 3. Leverage Ratios 08 • • • Long term debt/ Equity Total debt/ Equity Fixed Assets Turnover Ratio 3. • 1. 2. a low ratio indicates that the company may not be able to meet its current liabilities on time and inadequate working capital.07 0. 2.
Operating Ratio establishes a relationship between operating costs and net sales. Lower the ratio. A rise in operating ratio indicates decline in efficiency. 2.77 in 2007 and increased to 15. 3.83 14.77 9.28 in 2008 which means the company’s efficiency has increased because higher the net profit ratio better the business. The company had a ratio of 13.23 in 2007 and it increased to 14. the better it is.83 in 2008.• • 13. . The Gross Profit Ratio establishes relationship of gross profit to net sales of a company. Net Profit Ratio establishes the relationship between net profit and sales.62 in 2008 which indicates that there has been adequate coverage of administrative and marketing expenses.11 in 2007 and it decreased to 10.70 Operating Ratio Gross Profit Ratio Net Profit Ratio Return On Long Term Funds 15.28 58.23 • • 52.62 10.11 14.11 1. The company had a ratio of 9. The operating ratio of the company is 14.
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