FINANCIAL MANAGEMENT

FN6213

Assignment 2

Cost of Capital (WACC)

“Asian Paints Limited”

Submitted To:
Associate Prof Sabin B Panta

Submitted By:
Group. -05
Aditya Makhija 401803002
Devansh Pahuja 401803008
Riya Aggarwal 401756003
Anutaj Veer Singh Nagpal 401803024

LM THAPAR SCHOOL OF MANAGEMENT

(JULY-DECEMBER, 2021)
Introduction
Asian Paints Ltd., incorporated in the year 1945, is a Large Cap company operating in
Building Materials sector also engaged in the business of manufacturing of varnishes,
enamels or lacquers, surfacing preparation, organic composite solvents and thinners. It
operates in 15 countries and has 26 paint manufacturing facilities in the world serving
consumers in over 60 countries.

Besides Asian Paints, the group operates around the world through its various brands
viz. Asian Paints Berger, Apco Coatings, SCIB Paints, Taubmans, Causeway Paints and
Kadisco Asian Paints.

Cost of Capital (WACC)

WACC is an internal calculation of a company’s cost of capital. There are numerous
ways that one can estimate a company’s WACC – such calculations can be
accomplished on either a market basis or a book value basis. The book value approach
can be used by direct reference to the company’s income statement and balance sheet.
The market value approach uses a company’s reported market value of public equity
and the market value of the company’s long-term debt.

Cost of equity

Board Structure
2016-17

2017-18
2018-19

2019-20

2020-21

Familiarization Program

Conclusion:
Objectives Achieved
References

[1] Asian Paints Integrated Annual Report FY 2020 - 2021

(https://www.asianpaints.com/content/dam/asianpaints/website/secondary-
navigation/investors/AnnualreportFY2021/2020-2021/FINAL%20%20-%20Asian%20Paints%20IR
%202020-21(online)_230621.pdf)
[2] Asian Paints - Annual Reports
(https://www.asianpaints.com/more/investors/annual-reports.html)
[3] Report-Corporate governance
(https://www.asianpaints.com/content/dam/annual-report/pdf/report_corporategovernance.pdf)
[4] Asian Paints Annual Report 2016-17.pdf
(https://www.asianpaints.com/content/dam/asianpaints/website/secondary-navigation/investors/annual-
reports/Asian%20Paints%20Annual%20Report%202016-17.pdf)
[5] Asian Paints Limited - Annual Report 2017 - 18
(https://www.scribd.com/document/381534498/Asian-Paints-Limited-Annual-Report-2017-18)
[6] Asian Paints Limited - Annual Report 2018 - 19
(https://www.asianpaints.com/content/dam/asianpaints/website/secondary-navigation/investors/annual-
reports/Asian%20Paints%20Annual%20Report%20FY2019.pdf)
[7] Annual Report 2019 - 2020 (asianpaints.com)
(https://www.asianpaints.com/content/dam/asianpaints/website/secondary-navigation/investors/annual-
reports/Asian%20Paints%20Annual%20Report_Web.pdf)