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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 email@example.com For Customer Queries, E mail to firstname.lastname@example.org For all other Queries, E mail to email@example.com 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
Core values form the basis for our beliefs about life.2. VALUES: Even though we frequently talk about mission and vision first. 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.2. Core values are the principles and standards at the very center of our character. the company intends to build long term value in the Industrial coatings business through alliances with established global partners.3.2 Vision And Mission 1. • 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. • Asian paints international unit. and from which we will not budge or stray.2. Their main objectives is on the following areas. • To enhance their marketing in rural sector a huge amount investment is made in adcampaign and demonstration cum sales technique is going on.1. which have a dedicated marketing team is also targeting for a rapid growth in overseal market.2. the basic underlying foundations for both are our core values. • Company is using PC. ourselves and those around . Core values are extremely stable and change only very slowly over long periods of time. • Online marketing has become an integrated part of the company and company is trying install a strong integrated for online marketing. V-sats based line and internal mesh to become most networked corporation in India. Simultaneously. 1. • 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. • 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. • Company is trying to cutdown the inventory and improve the working capital cycle for a continuous production.
influenced by our environment and guided by our more stable core values and beliefs. along with our skills and actions.3. Along with the above mentioned views . Values and beliefs form our attitudes and guide our behavior. 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. and the human potential of ourselves and others. The behaviors we engage in are what people around us see. 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. Product range Ancillaries Product Name: Asian Paints Deco prime Wall Primer WT .us.
Its special features are easy brushing.lustre & matt wall finishes.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. alkali resistance.It has a good opacity & whiteness.Wood Primer penetrates wood fibre & gives excellent adhesion to substrates & also serves as a sound base for application of undercoats & finishing coats. 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 has an excellent sealing & filling properties which protects wood from swelling due to absorption moisture.Exterior Wall Primers doesnot chalk & can be applied on freshly plastered surfaces that are adequately cured. Product Name: Asian Paints Acrylic Wall Putty Description:Asian Paints Acrylic Wall Putty is water_based putty.It doesnot require any water curing. 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.It is one of the best product of its kind available in the market.good resistance to wall alkalinity. .It also protects the finish coat from exudation of resinous matter oozing out from wood. emulsions.It helps in providing a suitable surface for applicationof subsequent coats of putty & finish paint. It is specially fortified with fungicides.has good sealing properties. which helps improve the appearance of the emulsion top coat.It provides a very strong durable foundation & brings out the best performance from the finish paints. quick drying & good sealing properties. moisture & fungus.both in looks & durability. excellent covering.It seta fast. Product Name: Asian Paints Wood Primer Description:Asian Paints Wood Primer is specially formulated to protect wood.
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.It is an under coat that provides good adhesion to the surface.It is designed to penetrate into the exterior substrate & also improves adhesion of the Exterior Emulsion Paint topcoats. thereby increasing the life of the entire paint system. Product Name: Asian Paints Utsav Floor Colour Description: Asian Paints Utsav Floor Colour is a high quality oxidepowder.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.Its brilliance & gloss keeps increasing with time.it is a quality product available at economical price.which leads to lower absorption.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.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 has high colouring strengtyh &mixes easily with cement. ensuring a uniform deposition of top coats.It is manufactured using genuine Oxide imported from Persian Gulf.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.It has a butter like consistency & is easy in application.Also.which keepsyour concentrate flooring looking attractive for years.it dries hard.On air drying or stoving. .
Spain.It has a good Anti-Settiling properties & offers good opacity.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.it contains high quality pigments which inpart high tinting strength. 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. Automotive The actual look and feel of a vehicle undergoes a sea of change over time. Asian Paints is not having a very good market share in this segment. flow & leveling. a leader internationally in the refinish market. processes and programs to help our customers continually improve the efficiency and profitability of their business. This experience has enabled us to gain a thorough understanding of our customers’ needs and the issues our customers face on a daily basis. 2K Nexa Auto color 2K Nexa Autocolor® works in partnership with its customers to improve the profitability and well being of their businesses.they mix well with all water based paints thus giving a uniform shade tone. good coverage & flow & leveling properties. Malaysia. Nexa Autocolor brand is a market leader in markets including the UK.It has good whiteness. coverage. and Argentina. 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. England. has a history of more than 100 years experience in the paint industry. is subjected to a lot of wear and tear and hence starts deteriorating. The paint on a vehicle loses gloss. dealers and industry influencers in over 140 countries. It’s no different in India ! The Nexa Autocolor brand. Nexa Autocolor stands for innovation in paint chemistry and leads the industry with products such as Aqua . Manufactured at PPG’s plant in Stow market. China. Technical and training teams of PPG collaborate globally to develop innovative products. Brazil. France. Valued by body repair shops.
every time. 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.base. it uses smaller amounts of hardeners and thinners. Simple and easy-to-use. Satisfied CustomersThe Nexa Autocolor 2K Product System was designed with the professional collision center in mind. Nexa Auto color continues to develop state-of-the-art processes while maintaining its reputation for high-level customer satisfaction. or which country it is bound for. Our Mission Innovative Repair Solutions With a track record of technical innovation and products designed for improved productivity and reduced material usage. High-Quality. • It is a very cost-effective system. every time. The same product and shade match is available across the globe irrespective of which country your car comes from. it delivers fast processes. which offers a superior coverage per litre of paint.quick and accurate colour matching with the right colour. Its comprehensive range takes care of all kinds of painting needs. Quick and Accurate Colour Matching With over 100 years of experience in the paint industry. Deltron is available on a mixing system with a range of tinters. fast process times and top-quality results enable any collision center to achieve the highest levels of customer satisfaction . Nexa Autocolor satisfies the number one need of the collision center . Advantages of Deltron : • It is one of the best automotive refinish systems available in the world today. These tinters are mounted on a mixing rack that is installed at the shops of each Deltron dealer. • It is supported by a global R&D and colour matching division. and is suitable for all types of weather and environment conditions. ensuring further savings in costs.time after time. Deltron A premium 2-pack polyurethane based automotive refinishing system. This is due to an advanced tinter based technology. which when mixed together in different proportions offer a wide variety of shades to the customer. It is available in more than 40000 shades. With the technology to colour-match even the most difficult of special-effect colours. the first time. • The colour centre in Mumbai ensures that all shade-matching problems are resolved at the earliest. It is a product sold in more than 40 countries around the world. It comes as a fully integrated package of products. reduced material consumption and outstanding results. the first waterborne basecoat. right from bare metal pretreatment to plastic component systems through to polishing and finishing compounds. • The clearcoats offer exceptionally high levels of gloss and mar-resistance. Outstanding colour matching. This ensures that the cars finished in Deltron retain their superior finish even years after they have been painted . • The same set of hardeners and thinners can be used for all the tintable shades on offer. Nexa Autocolor implements repair processes that reduce cycle times and increase profits. Furthermore.
Bilux has more than 500 shades to offer in solid and metallic colours and this number is increasing by dozens every month. clearcoats and primers to choose from. More so.the international range of Economy PU paint products is a complete system in itself. Delfleet is PPG's premium paint system for meeting the demanding needs and exacting specifications of OEM commercial vehicle manufacturers and fleet maintenance operations. this premier fleet coatings system is supported by one of the most comprehensive colour-matching systems in the industry.Delfleet The latest advance in fleet coatings technology. customers seeking a paint system configured to very specific performance needs will find that Delfleet offers a wide selection of topcoats. 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. • 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 . Incorporating the very latest fleet coatings technology. Moreover. 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. If you want .
excellent coverage and the shade fidelity have resulted in Bilux Topcoats getting huge acceptance in the refinish industry.one of the bestsellers from the Bilux range due to its ease of application. Aspa is now available on the mixing rack. sand and offers corrosion resistance and excellent adhesion to a variety of substrates. sanding and smooth finish. spot repairs and complete re-spray. With a network of over 1300 direct dealers spread across the country. • Bilux Clear / Bilux High Gloss Clear . its consumers vouch for its quality. it has been specially pigmented to provide better filling. It is easy to apply.Metallics .Bilux Metallics have earned the acceptance that they have. It can also be used on old finishes to prevent lifting. because of the high gloss level and its retention under both Bilux PU Clear as well as Bilux HG Clear.Two range of polyester putties to take care of different kinds of requirements .A high performance undercoat for a variety of substrates providing excellent adhesion to topcoat. The dealers are therefore able to generate over 80 different shades by combining various base and tinters.Solids Automotive Paint . o Bilux Etch Primer . 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 . hence reducing wastage due to incorrect mixing. while still giving excellent dry film thickness. Since its launch in 1973.e. Aspa Old is Gold . It has a long pot life.The complete Bilux System has the following to offer to you in terms of product range • Bilux Primers .This popular adage best describes AsianPPG's oldest brand in the automotive paints category which was integrated from Asian Paints. • Bilux Putty / Bilux Light Weight Putty . gloss level retention. partly.Bilux range offers a host of primers to take care of the various requirements of each and every customero Bilux HB Primer Surfacer . • Bilux Undercoats . we can make it available for you in 3 days' time. They provide a hard glossy film that can be easily polished to remove dirt. Aspa (an Alkyd based product) won the hearts of all its patrons and continues to remain the market leader. o Bilux Epoxy Primer . This brand offers variety of hues i. It is designed to provide smooth laydown for minimal sanding.An economical primer providing excellent anti-corrosion protection.a particular shade. 45 shades in metallics and 85 in solids.It is a fast-drying two-pack High Build Primer Surfacer specially formulated for new work. The quality of finish. With technological advancement.
putties etc. This segment is price sensitive and is a higher margin business as compared to industrial segment. Asian Paints is the market leader in this segment. It offers excellent resistance to . 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.• • Aspa High Gloss Clear Aspa Thinner DECORATIVE PAINTS Major segments in decoratives include exterior wall paints. architectural and other display purposes. Demand for decorative paints arises from household painting. 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. interior wall paints. Demand in the festive season (September-December) is significant.
chalking. interior wall paint and gives walls a delightful. water-based hi-performance long-lasting exterior wall finish. 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. Ace offers good anti-algal performance in dry to moderately humid climatic conditions. 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. Ace gives cleaner shades which do not fade and last longer. Interior Walls Product Name: Asian Paints Tractor Acrylic Distemper Description:Tractor Acrylic Distemper is a water-based. Product Name: Asian Paints Apex Ultima Description:Asian Paints Apex Ultima Advanced Anti Algal Weather Proof Emulsion is a water-based. Product Name: Asian Paints Apex Stretch Description: Asian Paints Apex Stretch Water Repellent Exterior Paint is a 100% acrylic. Cost Range: Mid-Range Finish: Rich Sheen Availability: Available through Asian Paints Project Sales Only. anti algal. 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. 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.5mm. its special formulation ensures .modified acrylic. 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. matt finish that lasts for ages. attractive. Cost Range: Economy Finish: Matt Availability: Across all Colour World Dealers.
which can be wiped with clean water. Being oil bound. durable and value for money. Metal Surface . Cost Range: Mid-Range Finish: Matt Availability: Across all Colour World Dealers. Asian Paints Tractor Synthetic Distemper gives a uniform matt film. Product Name: Asian Paints Tractor Synthetic Distemper Description: Asian Paints Tractor Synthetic Distemper is a water-based. It is the most popular distemper brand in India and gives walls a finish that is good looking. Cost Range: Economy Finish: Matt Availability: Across all Colour World Dealers. which gives better washability and durability.It imparts a durable matt finish. the paint film becomes harder over a period of time. interior wall paint. time-tested. Cost Range: Mid-Range Finish: Matt Availability: Across all Colour World Dealers.shade retention for a long time and its fast drying property facilitates quicker completion of painting jobs. 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.Utsav Distemper gives you a distemper finish at an economical price.which lasts all year round.
has low VOC. Cost Range: Economy Finish: Glossy Availability: Across all Colour World Dealers. It has features like odour and fumes free.This product is currently available in only Sparkling White. which keeps the surface looking as good as new.Product Name: Asian Paints Luxury Ultra Gloss Enamel Description:Luxury Ultra Gloss Enamel is an enamel with far superior performance parameters than conventional enamels. cabinets). windows. furniture. it can be applied on wooden surfaces (like doors. Luxury Ultra Gloss Enamel offers Superior Gloss. and provides a durable finish at economical prices. wooden and metal surfaces. superi anti yellowing properties and a Unique formulation with anti fungal properties. 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. Wood Surface Product Name: Asian Paints Utsav Enamel Description:Utsav Enamel is a solvent-based paint that gives a long lasting glossy . meets EN 71 standards. on metal surfaces like grills. and is quick-drying such that 2 coats can be completed in the same day. 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. It forms a tough film that is resistant to stains and water. furniture and on suitably prepared masonry wall surfaces. Recommended for interior surfaces.
This product is currently available in only Sparkling White. furniture. superi anti yellowing properties and a Unique formulation with anti fungal properties. 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. powder coatings and protective coatings. It forms a tough film that is resistant to stains and water. has low VOC. and is quick-drying such that 2 coats can be completed in the same day. Kansai Nerolac is the market leader in this segment. on metal surfaces like grills. it can be applied on wooden surfaces (like doors. furniture and on suitably prepared masonry wall surfaces. windows. and provides a durable finish at economical prices. Cost Range: Premium Finish: Semi Gloss Availability: Available through Asian Paints Project Sales or Asian Paints Home Solutions Only. User industries for industrial paints include automobiles . Product Name: Asian Paints Luxury Ultra Gloss Enamel Description:Luxury Ultra Gloss Enamel is an enamel with far superior performance parameters than conventional enamels. wooden and metal surfaces. cabinets).finish. It has features like odour and fumes free. Cost Range: Economy Finish: Glossy Availability: Across all Colour World Dealers. meets EN 71 standards. Recommended for interior surfaces. which keeps the surface looking as good as new. Luxury Ultra Gloss Enamel offers Superior Gloss. INDUSTRIAL Industrial: Three main segments of the industrial sector include automotive coatings.
concrete floors are aesthetically unappealing making the workplace dull. PROTECTIVE COATING Protecting industrial assets is increasingly becoming critical owing to rising asset costs. pharmaceuticals etc. the presence of cracks and surface porosity allows various oils to seep in. Therefore asset owners are looking at specialised protective coatings specific to their requirements. sugar. chemical. it is often the most neglected and abused part of the structure. harsh weather conditions and mounting chemical pollution. Today the range of coatings find use across diverse industries such as nuclear. Limitations include the accumulation of dust due to the formation of laitance and difficulty encountered during cleaning owing to surface texture. Apart from the mechanical abuse. Protective Coatings from Asian paints offer a choice of high-performance. offshore structures. spillages of various kinds of chemicals also occur often weakening the reinforcement and concrete surface. designed to protect assets against the specific corrosive environment they are exposed to. thermal or hydel power plants. Despite this. Weakening of the reinforcement and concrete surface due to chemical spillage and the possibilities of microbial growth are other significant drawbacks. We perceive this to be just the right environment for Asian Paints to demonstrate its growing technical strength. An increasing awareness of the limitations/drawbacks of concrete flooring is now resulting in wider acceptance of floor coatings. Apart from these. abrasion resistant coatings available in wide range of attractive colours. 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. we understand the specific environment that your assets are exposed to. petrochemical or fertilizer plants. Furthermore.engineering and consumer durables. At Asian Paints. heavyduty coatings. refineries. pulp and paper industry. They have excellent mechanical properties and . Floor Coatings Concrete floors represent a significant investment for any industry. so as to offer the right coating solution for your needs. The APCOFLOR coatings are hard wearing. The need to protect the surface with a suitable coating is quite obviously there. The industrial paints segment is far more technology intensive than the decorative segment. resulting in unappealing patches.
apart from protecting the concrete surface. its importance is indisputable. provide very high retroreflectivity.provide floors that are tough and long lasting. Though the cost of road markings is fractional in comparison to the cost of the road. very ideal for edge lines on highways and apron / taxiways at airports. Often a key parameter used to judge the road quality is the quality of the installed road marking.Specification for ready mixed paint for road marking. fast drying highly durable 100% acrylic retro-reflective water borne paints. . they also serve as a tool for controlling. Asian paints commands market leadership in the field of thermoplastic road markings. They take less time for application as can be sprayed by Air / Airless spray machines leading to lower disruption in traffic movements. Markings signify the delineation of traffic path and the lateral clearance from traffic hazard for the safe. Asian Paints offers a variety of road markings. fast drying highly durable 100% acrylic retro-reflective water borne paints and conventional water / solvent based road marking paints. They. "Specifications for Road and Bridge Works" of Ministry of Road Transport & Highways. APCOMARK range of markings includes hot applied retroreflective thermoplastic road markings conforming to clause 803. Road Markings Road markings are the silent custodians of road safety in this era of four and six lane highways. warning and providing information to road users. ordinary water based road marking paint and the 3rd generation road markings: APCOTRAK WBR. They are safer to handle as heating is not required. These include hot applied retroreflective thermoplastic material. These represent a generational shift in markings. 1981 (Amended 1993) . smooth and orderly movement of traffic. Do not soften on environmental heat and hence dirt pickup is eliminated. 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. help tide over the limitations without affecting the intrinsic strength of concrete floor. Apart from traffic guidance. 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. APCOTRAK range of coatings includes coatings such as water based road marking paints conforming to IS-164.4.
with a turnover of Rs 36. for a company can go only as high as its people aim. .APL’s dominance in paint industry and presence across all segments will enableit to maintain the margins going forward.3 in FY07(Rs. It is people who innovate and invent. Objectives and Business Philosophy of Asian Piants 1. Turnover Asian Paints’s turnover has been growing at the rate of 11.7 billion (around USD 851 million).0x FY09E & 19.5. 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. targets and performance parameter. It is changing fundamentally with two objective in mind a huge ramp in the market share and better growth over the next three years.85% (CAGR) over the last 3 years and is expected to exceed Rs.6.7 billion by end of 2010. in FY07 to Rs. the Indian paint industry is expected to grow ata CAGR of 11. Size of Organisation Manpower Asian Paints believes that people are its strongest assets.2% from 29. At Asian Paints.4.0 the stock is trading at 25. Valuations We expect the company to register a 3-year EPS CAGR of 28. Besides encouraging achievers from within the organisation. 1.7 bn in FY10E. An open and interactive work culture brings out the best in our people. It is they who drive growth and lead to greater heights. Asian Paints is India's largest paint company and the third largest paint company in Asia today.The Indian Paint Industry growing at 1. And each section has its own independent support system. A sense of ownership and freedom to experiment at their workplace brings out creativity and innovation in every individual. Asian paints the leader in Indian paint Industry has a very strong marketing division. Previously company used to function as undifferentiated organization. from FY08Eto FY10E is around 255450 tonne. we absorb the best talent from some of the best management and technology institutes in the country. Assuming thecountry GDP grows @7. Organizational Structure in Asian Paints 1. This was to be done through: • Common branding .85% from Rs. 112 billion to 156. Excellent training is provided to develop leaders and re-strengthen competencies from within the organisation.1. 1200.In order to cater the incremental demand of the domestic paint industry.e.7 FY10E.6. But now they have divided it into three section each.5x FY10E earnings per share. performance oriented and agile company.1. mn) to 61.5% p.1419 (implying a forward P/E multiple (Rs. At CMP of Rs.a.5 times the GDP growth. mn) of 23x) on account of robust domestic demand for decorative paints. totalcapacity addition coming upstream in over the period of two year i. and who engineer the efficiencies that make a business succeed. 112 bn. With more than 35% market share Asian paint is still growing in leaps and bounce to achieve higher targets. our human resources systems are designed to create a focused. A talent pool of over 4700 employees employed across 23 countries bring in a unique blend of mindsets and skills. We initiate coverage on Asian Paints Ltd with a BUY recommendation and price-objective of Rs. 156.
and building shareholder equity. APL has its presence in almost all the segment through its brands Royale in the premium segment.2. fast track growth.• • • Centralized marketing Centralized quality control Centralized purchases 1. 6.1.3 The Board of Directors recommended the payment of final dividend of Rs. Asian Paints Limited (APL) incorporated in 1942 ranks among the top ten decorative paint companies in the world. An interim dividend of Rs. • Asian paint is now targeting to provide paint solution with insurance. Asian paint is following unlque strategy of marketing in the rural areas by using their official mascot. Apcolite in the mid-segment. 1. The company has an enviable reputation in the corporate world for professionalism. in the lower segment. . • Asian paint website Asian paints com provides several information regarding the product and various other information that is being required by customer and dealer. Apco Coatings and SCIB Chemicals. Utsav and 3Mango etc.6.50 per share (65%) was distributed in Nov’08 Thus total dividend announced for financial year 2008-09 will be Rs 17. It has presence in decorative and industrial coating segment of the paint business. Simultaneously. The Process Flow of the Asain Paints 1. Besides.50 per share (175%). 17 per share (170%). Asian Paints operates in 21countries and has 29 paint manufacturing facilities in the Industry: world servicing consumers in over 65 countries. The ‘P1+’ rating assigned to the Rs 500 million Short-term Debenture Programme of the company has been withdrawn. 11 per share (110 %). the Company operates around the world through its subsidiaries Berger International Limited. Market share and Position of the Company 1. The total dividend distributed in FY2008 was Rs. Gattu.18.104.22.168. 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. Tractor. the ‘P1+’ rating assigned to the 700 million Commercial Paper Programme has also been reaffirmed.7. 1.
4 APIL is primarily engaged in the manufacture and sale of decorative paints.6%.6 billion. with a turnover of Rs.5 The market size of the Indian paints sector has been pegged at Rs 134 bn in value terms and is very fragmented.25. Asian Paints product range includes Decorative Paints. APIL. Kansai Nerolac (20% market share). with the organised sector accounting for the balance. Fiji. Kasna and Sriperambdur. The per capita consumption of paints in India stands at 0. The company also has an international presence through its subsidiaries in Sri Lanka. Present Leadership P M P M Mr.9. with the objective to establish itself in the fast growing powder coating segment. also operates in the automotive paints segment 1. Berger Paints (19% market share) and ICI (12% market share 1. Mr. Australia.7. Industrial Paints & Automotive Paints. Patancheru.000 units having small and medium sized paints manufacturing plants. India's share in the world paint market is just 0. the growth stood at 15% YoY. Asian Paints operates in 22 countries and has 28 paint manufacturing facilities in the world servicing consumers in over 65 countries. Abhijit Bhattacharya – 1.000 tonnes per annum and is seasonal in nature. Middle East. It ranks amongst the top ten decorative coatings companies in the world today.Phthalic anhydride and Pentaerythritol. the industry grew by 18% in FY08.7. Each plant is headed by the Factory Manager. Ankleshwar. Top organised players include Asian Paints (30% market share). The current demand is estimated to be around 650. The unorganised sector controls around 35% of the paint market. Bhandup plant is the oldest plant with an installed capacity of 30000 Tonnes per anum.Human Resources Senior HR Manager General Works Manager Manager-Production Marketing manager Sr. Manager-Training Ms. in volume terms.6 kgs in China and 22 kgs in the developed economies. there are about 2. All plants are also awarded with ISO . through its 50:50 joint venture (Asian PPG Industries Ltd) with PPG Industries Inc USA. The company has five manufacturing units which are located at Mumbai. In the unorganised segment.5 kg per annum as compared to 1. Mauritius and Nepal.1.8. While in value terms. the company is integrated backwards for manufacture of two major intermediate chemicals . Tarjani Vakil – NS (Subba) Iyer – Sudipto Mandal – Salil Chinchore – Jagannath B – Nilay Verma – Mr. In addition. Historical Background of Asian Paints Asian Paints was founded in 1942 as a small partnership firm & now is India's largest paint company. Murthy Murthy Ashwin Ashwin – – Choksi – Dani – CEO Managing Director Non-Executive Chairman Non-Executive Vice Chairman Chairperson of Audit Committee General Manager . During 2001-02. APIL has acquired the powder coatings business from Hawcoplast Chemicals.
Their particular ad campaign ‘Mera Walla Blue” “har ghar kuch kehta hia” are being liked by the customer. “Golden peacock environment management award”. The promotion strategy of Asian paints is bringing a lot of positive output to the company.9000 & ISO 14000 certification. wood finishes. “Five star rating” by British safety council in 2003 & 2005. 1. automobile OEMs & refinishes. marine & Industrial coatings. Asian paints has won many awards & recognitions which includes rating under “200 best under a billion” by Forbes global in 2002.3 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. Asian paints limited with its three business units decorative. All the customer could easily access the product of Asian paint anywhere and any time. Company is using different techniques such ad. Industrial & International business is one of the largest paint company in India. A total amount of 85 crores is spent ont eh ad campaign by asian paint. Asian paint with its natural competitive advantage of size (Number 1 in India).3000 crore turnover mark-a preset mile stone for the company. It has almost retail outlets through out the country situated in the different city of India. “Best small company in India” by Asia Money in 2002. Strong brand equity & largest distribution Network has acquired the number one position in Decorative segment in India. direct marketing and public relation. “Best supply chain” award by i2 solutions. sales promotion.1.10. Campaign.10. In achieve the current position a lot things are being done by the Asian paints. Product and Process Technology . Advertisement and Promotion by Asian Paints 1. 1. personal selling. Asian paint had established 30 colur world through out the country giving the people real taste of colour. Significantly the group has crossed the Rs. The product portfolio of the Asian Paints group covers a large spectrum of finish coasts & ancillary products in decorative paints. “Golden peacock” national quality award by union labour ministry. It is an unique way of promotion. Asian paints the market leader of the decorative segment in the paint market of the India.10.11.2 Asian paints is dominating the television advertisemnt by increasing other ad campaign cost over 50% from next year. It had a sell over 300 million litres of paint in 2005-06. 1.10. The punchline for the colour world is “Jahan Milen world ke saare colour” Asian paint has large area of Network of distribution. With huge ad campaign support behind the product the company is able to making a brand name in the mind of customer. 1.
Company follows the principle providing the customer different kind of products and different price. Asian paint in these sector is behind its competitor Nerolac. The cost of these product is Rs. But now some companies like Asian paint. 20. Products of Asian Paints in Industrial sector : it is the second category of the product that Asian paint produces. The cost of the produce of Asian paint varies according different income level of the consumer. Berger have their products in this segment.Asian paint produces a wide range of products which have more than 1100 shades. Their product were targeted to the different segment of the society. 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. nerolac. 201 where the product like GATTU and Utsavfamily product are targeted to lower income segment people the cost varies from Rs. 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. Road mapping and various other industrial uses.275 and the latter Rs. 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. This sector is emerging market in India. 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. Products : The products of Asian paint in this segment are (1) Allumium Paint (2) Fibre Paint (3) Apcolite Hammertone finish . 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. In this segment Asian Paints targets to industry where the paint are used for protective coatings of the machinery.15 – Rs. In these segment the product are normally sold at the premium price. . In company’s Decorative premium sector company have products like Asian paint Royals and Asian paint Emulsion.
They are installing colour dispensing machine across the country. The site use Maximum interactivity to enhance user experience. they are logging behind the demand. In Industrial sector their supply chasing demand strategy accumulated lot of inefficiencies. There are painting lips. cost calculation (based on floor area and number of rooms dealer locator and a short of other innovative services. The company recently augmented their web pressure. so there is a scoe for cost reduction. GATTU. (3) Concentration on emulsions & distempers. So now set up is needed as well as they are concentrating on enamels.com is an exhaustive hub of ‘Painting solutions’. despite a strong brand name has grossly underutilized its potential in decorative paints. other words interior paints.1. Now we are considering individual strategies of the three companies. The different strategies they are dealing with : (1) They want to see high growths from decorative segments. Nerolac Paints : Nerolac. It gives Asian paints on overall good perspectives of business along with challenges of chandelling new Ares of operations. online shades cards. Customer segmentation is the most important part of the marketing strategy of any company.13. 1. It always have strong belief in individual ability and creating an environment in which an entrepreneurial spirit in encouraged. Asian paints have created a platform where Talent is shared across the organization as Managers are given in different areas of operations. In industry they are recognized as trailing firms. So. But with their high growth in the industry the competitors can touch or even overtake Asian paitns. for that the three main competitors have different strategies. Asian paints has stressed on employee development and creating leaders of tomorrow. (i) Decorative (ii) Industrial (iii) Automotive. Their website. Asian paints. the market leader in the Indian paint market segmented their products mainly in three sectors. its two main targets are : i) to keep hold of the Industrial paint market ii) increase the market share in Decorative paint sector. . Asian paints.12. Initially one common strategy must be their mind – is to increase the market share. 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. Major Players In the Indian paint industry Asian paints is the leader keeping the other competitors far behind. (2) In decorative segment. This is why Asian paints have believed to be a best employees for personal and personal growth. the Asian paints official Mascot is a familiar icon across India. But in industrial paint sector it is far ahead of other competitors. Asian paints have invested heavily in branding. All their business strategies mainly rounded this two issues. Their customers are all also segmented based on the usage of these products. So they want to upgrde the equipments to improve efficiency in manufacturing & secondly they are taking advantage of IT to improve over all efficiencies. Diversification Moves by Asian Paints Although operating in commodity market.
Which helps to forecast the international colour trends in paints. (iv) Improved service & solution to the customers. Though ICI is considered as the 4th paint against in India. it has been actively pushing its presence in the industrial paint segment. . (4) They want to concentrate also on the automobile paint industry. The company has invested a million dollars in the R&D of the colour futures concept. Keeping this in mind company has targeted a 15% share of Industrial paints in the company’s product mix. Nepal to boost its revenue. vii) An establishment of new plant in Russia was done in 2005. ICI Paints : Within 3 years of launch of colour future from ICI it proved to define the International interior designing trend. but its presence & development can be a threat to the others. iii) They are looking to export in nearby countries such as Bangladesh. (iii) Improving technology & offering better quality at a moderate price will help to capture the rural market easily. Berger Paints : Berger paints is considered as the dark horse of paint industry. (ii) Considering the increment of channel partners. Here they are already established but Asian paints is also targeting this sector heavily. v) Berger’s performance in Automotive sector over the lst few years has been fairly. which is expected to start production by the end of 2006. Berger is targeting the rural market. Here also they are targeting to build up some tie-up with automobile companies. now it is looking for a rapid expansion at the western region also. 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.Distinguishing the high – low end products. ii) Recognizing the saturation of the urban market. To improve its business the company have some strategy : i) Company is mainly spreaded in Eastern & Southern part of the company. The company is slowing penetrating to both of decorative & Industrial paint segment. Industrial paint segment has a higher growth rate. Bhutan. Here they would like to go for the branding of products through proper advertisement compaign & with their new logo. While company’s main strength is in decorative sector. company is likely to utilize the Russian plant to cater to the markets of CIS countries in the future. iv) Within the paint industry. vi) Berger had ticups with Nippon paints of Japan & orica of Australia.
CHAPTER-2 SWOT Analysis of the Company .1.14. By personal interaction with the public relations officer of the organization concerned. Source Of Data Collection Official website of ASIAN PAINTS.
Weaknesses. to find out its overall Strengths. they have brands in different price slots like Utsav for rural lower-end markets and Apcolite for high end-markets. Strengths: 1.1. 2. semi-urban and rural areas. For example. SWOT analysis is done for a company. Threats and opportunities leading to gauging the competitive potential of the company.SWOT ANALYSIS OF ASIAN PAINTS SWOT analysis is a basic. straightforward model that provides direction and serves as a basis for the development of marketing plans. Here SWOT analysis of Asian Paints is made to understand the positioning of the company better. Comprehensive nation wide coverage of the market – urban. the closest competitor does not have even half of AP’s share. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. 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). They have quite a number of brands. 2. SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. covering all segments and filling all gaps. . 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). Market leaders with 35% market share in the organized sector.
It has a country wide distribution 6. A network of 13. ROI of AP is 40% while ROI of the rest of the industry is 22%. IDBI study rated AP as one of India’s most excellent companies. 1995 Corporate Excellence Award from HBSA and ET. They have won many accolades and awards. 9. In-house production. The pricing strategy is oriented to middle/lower end consumers. superior in quality assurance. APs average inventory level is 28 days sales against 51 days for the industry. 5. no outsourcing.2. Their policy of offering tailor-made products to suit customer need has resulted in an ever growing product range. 11. They have an enviable track record in breaking the position of MNCs in the Indian paint industry. AP is found everywhere. For example. AP’s logo ‘Gattu’. AP has 45% edge in inventory carrying costs. employs maximum number of MBAs. 2. It is far behind the . 4. Weaknesses: 1. Strong in inventory control. Corporate reputation has been a major strength for AP. High caliber human resource. AP is quite strong in production-marketing coordination. 8 different pack sizes. Widest product range in terms of products. they have large network of regional offices and company depots and sales personnel to service the nationwide dealer network.40 different decoratives. shades. AP has only a 15% market share. an impish boy with the paint tin and brush. The nearest competitor has less than 8. another study rated AP among top 5 paint manufacturers in the world. some in 150 shades. pack sizes . The image is that of a successful and well-managed company.000 dealers spread all over the country. In industrial paints. 10. Unlike its competitors who concentrate only in urban areas. 7. 8. as a proportion to total number of employees. 12. Net worth of Rs 204 crores against Rs 58 crores of Goodlass Nerolac and Rs 41 crores of Berger. For this.3. is most popular and easily recognized. 13. high reliability in suppliers.000. Leader in profit and operating margins.
Berger has a technical tie up wuth Herbets. Widening product mix puts strain on production distribution. 2.leader Goodlass Nerolac. Innovation in developing new products is adequate.3. Goodlass with its Kansai connection finds it easy to tap Maruti in India. Germany. which has provided the company with Cathodic Electro Deposition (CED) technology. Since Kansai is the supplier to Suzuki. Seasonal demand and hence in off seasons it can lead to cash flow problems. It has maintained a product profile keeping the market trends in picture. 3. Goodlass Nerolac has a tie-up with Kansai paints. The automobile industry accounted for 50% of the industrial paint market. Since this is going to be the major growth segment in the future. . a lag in this segment will end up as a major weakness. 5. Ever expanding product mix throws some strain on inventory management. 4. No tie up with foreign manufactures. which accounts for 50% of Industrial paint market. 6. Developing market in automobile industry. AP has a major weakness on the technology front in industrial paints. accounting and administration. Valspar Corp. For example. 2. for automotive paints. AP has not been able to make any significant advances either with Maruti or the auto segment in general. Japan. 7. Opportunities: 1. 3. 4. Holland for powder coatings. USA for heavy-duty coatings and Teodur NV. 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. Through it has units in several countries 2. Most paint firms have technology tie-ups with manufacturers abroad. which has a market share of 43%. AP has always encashed on opportunities that have come its way. Acquiring/ increasing market share in Industrial paint sector.
hi-tech facilities gives abundant choices. it is possible that in the future. Domination of few foreign companies. 3. The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Since both Goodlass Nerolac (43%) and Berger’s (14%) have a higher market share than AP’s (14%). Strengths and opportunities are fundamental and weaknesses and threats are transitory. 2. 4.4. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks). Threats: 1. innovative approach (in product lines and marketing) and values (of quality/ethics). 5. ICI’s Touch Colour and Berger’s Colour Bank are indicative of this. J&N’s instacolour offers 626 shades. Automated paint blending in retail points already there. Competiton is catching up fast. Competitors have gone in for hi-tech with instacolour spot mixing.2. . they may capture the entire industrial paint market. For example.
CHAPTER-3 ANALYSIS OF FINANCIAL STATEMENTS . but it was the man who invented the meter that really made the money.Benjamin Franklin discovered electricity.
89 806.90 31.116.017.68 694.20 959.15 597.28 703.36 476.70 36.91 428.005.70 40.76 1.94 166.92 95. loans & advances 1.25 92.53 Investments 234.37 Unsecured loans 40.58 648.47 Less : current liabilities & provisions 1.68 Total 1.44 17.59 36.70 40.27 Uses of funds Fixed assets Gross block 1.39 345.64 136.20 959.93 937.91 300.86 637.02 158.31 5.40 542.14 712.83 334.15 596.87 222.25 16.55 258.86 637.88 28.47 Net block 622.159.02 509.50 257.01 197.83 Number of equity sharesoutstanding (Lacs) 959.76 254.71 401.06 89.22 869.77 422.90 851.20 959.17 163.50 Contingent liabilities 356.76 1.91 Market value of quoted investments 178.87 12.20 736.005.20 959.55 832.70 66.159.36 1.26 148.035.39 274.034.Balance Sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital 95.20 .38 Total net current assets 137.06 471.23 Capital work-in-progress 164.75 55.16 526.70 40.172.90 851.08 Miscellaneous expenses not written 24.92 95.22 187.29 435.05 180.30 Loan funds Secured loans 24.21 686.92 95.68 694.88 334.27 Notes: Book value of unquoted investments 157.92 Share application money Preference share capital Reserves & surplus 998.92 95.70 Less : revaluation reserve Less : accumulated depreciation 494.43 311.26 183.92 1.26 Total 1.43 Net current assets Current assets.
517.48 1.92 -105.69 156.53 47.78 255.20 101.69 -331.13 Preference dividend Dividend tax 28.34 646.73 Other recurring income 35.82 CASH FLOW Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Profit before tax 547.37 139.39 172.86 163.73 .00 110.04 2.58 150.60 -2.55 Operating profit 593.19 407.53 376.76 Tax charges 185.45 Net cash used in investing activity -16.50 563.36 375.72 17.640.747.86 220.125.447.80 Net cashflow-operating activity 325.16 6.97 186.33 Reported net profit 362.510.12 3.12 21.14 14.595.66 1.88 564.99 117.20 382.35 42.89 270.36 2.74 1.081.82 12.90 91.91 -0.32 25.93 32.953.29 312.06 151.52 -187.39 25.12 0.55 Cash and equivalnt end of year 128.52 1.83 Adminstrative expenses 170.026.47 269.63 50.91 13.Profit and loss Account Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income: Operating income 4.56 620.70 119.365.91 -110.34 Personnel expenses 239.35 Selling expenses 779.97 -73.30 1.88 423.23 75. activity -221.54 Retained earnings 365.25 218.39 25.15 43.36 525.93 569.55 409.42 468.50 Adjusted PBDIT 629.04 304.49 28.05 286.08 Netcash used in fin.82 53.69 2.61 391.969.33 126.06 -34.60 129.23 Financial expenses 15.28 Expenses Material consumed 2.29 366.34 8.42 239.78 1.76 352.06 -82.052.66 139.86 337.19 3.08 96.26 41.04 Other non cash adjustments 3.23 -110.61 -126.40 Manufacturing expenses 86.77 45.16 326.11 2.06 124.05 49.77 1.77 Non recurring items -11.58 Depreciation 57.78 2.73 24.54 155.916.49 436.91 -1.09 2.77 195.661.53 267.29 Adjusted PBT 556.46 15.48 Earnigs before appropriation 562.62 Expenses capitalised Cost of sales 3.38 2.53 27.12 64.98 Adjusted PAT 370.48 Equity dividend 167.42 45.05 186.97 334.49 28.35 42.21 457.18 Cash and equivalnt begin of year 41.20 272.47 1.43 118.19 Net inc/dec in cash and equivlnt 86.58 508.77 16.53 2.61 Other write offs 2.78 173.92 304.
24 in 2007 and it has decreased to 1. The company has a debt equity ratio of 0. Current ratio of the company is 1. Profitability Ratios 08 07 07 0.97 in 2008 which indicates efficient utilization of fixed assets by the company.47 in 2008 which indicates there is not overstocking by the management of the organization. 3.07 in 2007 and it decreases to 0. A current ratio of 2 is normally considered satisfactory. In other words. Leverage Ratios 08 • • • Long term debt/ Equity Total debt/ Equity Fixed Assets Turnover Ratio 3. In other words. The company has total debt equity ratio of 0. 2.07 0.02 in 2008 which indicates good investment policies of the management and good inventory control.08 0.59 Liquidity Ratios 08 Current Ratio Quick Ratio 07 1. The company had a fixed asset turnover ratio of 3. • 1.14 .81 Comments 1.24 • 0.14 in 2007 and decreased to 0.97 3.02 0.06 0. Long term debt ratio expresses a relationship between debt and the equity. Quick ratio of the company is 0.81 in 2007 and it increased to 3. Fixed assets turnover ratio indicates a relationship between net sales and net fixed assets. a low ratio indicates that the company may not be able to meet its current liabilities on time and inadequate working capital.47 Comments 1.59 in 2007 and it has increased to 0. 2. 3. 2.08 in 2008 which means that company’s shareholders funds has increased but total long term debts remain unchanged.06 in 2008 which indicates that the utilization and management of resources is has decreased as in the previous year.Ratio Analysis 1. it indicates that the company’s shares have not been favored by investors.
28 in 2008 which means the company’s efficiency has increased because higher the net profit ratio better the business.11 1. The company had a ratio of 13. The company had a ratio of 9.70 Operating Ratio Gross Profit Ratio Net Profit Ratio Return On Long Term Funds 15. The operating ratio of the company is 14.11 14.28 58. the better it is. Lower the ratio. The Gross Profit Ratio establishes relationship of gross profit to net sales of a company. A rise in operating ratio indicates decline in efficiency.62 in 2008 which indicates that there has been adequate coverage of administrative and marketing expenses. Operating Ratio establishes a relationship between operating costs and net sales.23 • • 52.11 in 2007 and it decreased to 10.62 10.83 in 2008. 2.77 9.• • 13.23 in 2007 and it increased to 14. . Net Profit Ratio establishes the relationship between net profit and sales. 3.83 14.77 in 2007 and increased to 15.
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