| Spociftt | Prosect 1SOPH MP OOM OOROHOMRHRHRHRHRMRHRARMAHRANRMmeeAsian Paints is India’s Jaryest paint tompany and third Largest paint company in fAsia today , with a turnover of Bs. 36-7 billion (around usp 1st million). The company fas an enviable world jor projessionalism, fost track repulation in the corporale Asion paints operates growlh, and building shareholder ¢quily . im at Counfries and has 29 paint manupacluring in over 65 countries . Besides facilities in the world servicing consumers Asian foinls, the group operates around the world through its subsidiaries Berger International Limiled, Apeo Goalings, S¢rB paints and Jaubmans, Causeway paints and Kadiseo Asion painls. In the Andustrial Coatings space, joint ventures with PP@ Ine, manupacturer in the ororld. the girst joint services the increasing Asian paints operates Through fwo 50: 50 usr, one op the largest automative coatings ‘pp Asian Painls Pvt Ute? venture Indian autornetive coatings market. the requirements of th second Tv ‘Asian Paitits PPG Pet itd? services the protective, { containers and Aight industrial industrial powder, industria coatings markets in India.Ashwin dani Amif Syngle Abhay vahil Aimrita Vakil Vibha Paul Rishi $. Sivaram Suresh Narayan Manish Chohsi Tigish chohsi Malev DANE R. Seshasayee Mk Sharma peepak satwaleRar Pallavi Shroff pesignalion Non Execulive chairman Manaying directior Non Freeulive Direclor Non Execulive Director Independent Director Independent —Direclor Gndepencent Director Non Execulive viee Chairman Non Executive Director Non Executive director Independent Director Independent” Director Independent Director tndependent Director| Balance sheetBavance SHET as_at_3t 20, (fin erore) PARTICULARS 31.03.2020 | 31.03.2019 \ a} 119,23 52.24 43.64ID ASSETS 1. Non- Curren Assels ai (81) thw, timameiol Asso Be amt ca assets (tt) %, Currenf Assels a. drventonrics 6. timameiot Asal wo CD trade, Recciwallles i) Cash & cash Eayuinatonls Gi) Bank (iv) Loans (v) other inanoinl Asli C. Other Assels Clanigied held for Sale a, other Cunt Asse 2g2i.47 432.35 4,109.22 336-96 39. 40 a. 34 atc. 96 30.6 400.64 179. 3 35. 36 St. GL 830.35 984 -02 36.00 200. 20 81,48 33.48 4,629.5¢ 2,588.10 4it6. 63 ath. 95 98. 33 69.19 43.98 564.634 | Statem@n 3 rr DLT a ss guTEMENT_of ROFT T_& Loss PROFIT & 1055 aN attt March, 2020 Sy . hd PRATICULARS S 7 I. Revenue Fror OpennTIONns I @. Revenue from sale of prodocls Ss Revenue from sale of Services aN Other operating revenues a Other Income GS Tefal tneome oe |x Extenses a ~ Cosf of maferial Consumed 3443-6 o Ss Purchase of stock - in- trode 4283.88 | 1,040.66 a Changes in inventories of tinished goods. (21923) | @43-86 ae Employee Benegits Experise 935.43 | 300.44 25%6.24 42, 886-94 Other Expenses TolAL Expenses W, EBIDTA dinance Costs Depreciation and Amoriisafion I. PROFIT BEFORE EXCEPTIONAL ITEMS & TAX Excepfional sfems 'V. PROFIT BEFORE Tax Tax Expense Corrert fax / Short term provision yo anlien years Deyerted fax ToTal Tax Expense 2845.44 13, 334-05 4,244.58 48.38 683. It 3489.62, 48-60 540.44 3,446.25 | 3,170.25 33.20 3413.03 | 3170-25 sti-15 884.6% 6.66 (419.43) | 1,038.08 q } 2,432. 4% 459. 08 2,653. 95Ts 1 ~ a ii atio . ‘® . v a) . » ~ . » “ye ~~ "ys i a) Se a5 2 2 2 2 2 2 T =) Anatysis E x” aS ee eee, APAMAMMMM AND LOD LF j CupRENT Retro Current Batio = Current assets Current Liabilities 2019 An Current ratio = Current assets __ | current ratio = _ Current assels “current iiabilities “Current Liabilities = (5625-40. 3195. 05 = 4.8224 6053. 35 4:58 Working Note: working Note + Current assets = Inventories + dinancial | current assets = dnventordes + assets 4other Current assets + assets | Hinancial assets + other current Claripied held for sale, assets + assets claritied held sale = 2929-43 + 2485.9 = 2585.40 + 3440.41 + 324.5¢t0 = 6053.35 Current Liabilities = sinancial 1iabilitis| Current tiabilities = Provisions + tinancia Liabilities + Current tat + Provisions + Current tax Liabilities = + other current’ 1sabilities Liabilities + other current diapilities = 149.23 + 52024 + = 90.92 + 3024 a 48.6% t 3621.2F + 44.14 7 48- +20.33 +0 = 5825.40 2841-44 = 3195.05 SIGNIFICANCE ¢ the ideas current ratio is 2: 201g was 1.5824 and in 2020 4. But in this case, current ratio in ig 4.82.4,Which implies year : ry. short - term financial position of the company ds not satispactory,NE } | c . |e Quick Ratio = Liquid Assels_ ot ; Current Lisbilities “e (2.018) 020] = r * a 3 Se | Sich Kalio = Liquid assets Quick Rafio = _biyoid assets vv Current! liabilities current Liabilities ng = atch 3s = 299823 a 3841.41 3195 - 08 » oan . = 0.90%4 = see my se} oekiny Mate: Loring Note : TD) Liquid assets = Cusrenl assets - Liquid assels = Currenf assels - Inventories 1° Inventories a ,. = 6053.35 ~ 2645 -10 = $225.30 ~ 2824-47 7 _. = 2998.23 «steht net ewapiile jobilities = jal tiabilitie YP 9| current siabilities = dinancial Liabilitil Guerent Liabilities ee 1 ° + Provisions + a » current tax abil! Gurrent tax Liabili- I Hes + other current fies + ooher current | liabilities Linbitities = 3¢ad.24 + 119-23 + = 3011.4 + 80.92 52-27 + 48.64 + tit + 48.59 = 3195.05 = 38tl.th SIGNIFICANCE * whe Ideal Quich ratio should be 1:4. But in’ year 2019 and 2020 fhe quich ratio is o.gozt and 0964 nuspettively, hence, the short term financial position cannot be said #0 be salissactory-Dest Equrry Rarzo_ Desr EQurty RATIO. = Debt Equity 2019 pebt equity Ratio = bebt Equity 455-28 129.34 453 9842-96 = oontd Working Noles: towm borrowings + long term Provisions = 10.89 + 118.48 = 129.3% equity = Equity share capital + oFher equity = 95.92 + 8343-0F = 9841.96 out = Stonigicance : 2020 Debt Deb Equify Ratio = Debt. Equity patio = Ee = 155.28 9453-23 O.oL tt working Notes = . pest = tong ferm borrowings + Lng Ferm provisions 48.50 + 136.48 155.28 Fyuily share copifel + = other equity 95.92 9354-34 9453.29 Equity this ratio is calculated to assess the ability of the 4irm to meet its Jong term Habili ties. the {deal debt - equity ratio tb att. dhe ratio of 2019 ahd 2020 are same which shows that company’s fong-term financial position ig sound. ‘this ratio Indicates sujyicient protection t0 fong- term lenders.a eo Ee & pe af Seif PI ISLLL SL YI) OIAL ASSETS Jo DesT AATIO dofal assels to debl Ratio = _ofal assels Debt 2019 wm Yolal assets to debt ralfo = otal assets te debt ratio = Total assets otal assets Debt eel 13, 662-§9 13,679-62 139.35 46g. 9% = 105.7634 = smh working Nole = Uorking Note? Yotal assets = Current assets + | total assets = Non- Current assels 6053.35 + 4623.5¢ 13,682.29 13,58% 62 Current assets + Non - Current assels 5825.40 T 4461-32 fong-term borrowings + |pebt = Long-term borrowings + long-term Provisions Long-term Provisions 10.89 + 118.48 = 18.504 436-78 fag. 3 = 155.28 Signigicance * the ratio hos decreased in yeox 2020 as compared to yeas" 2019. this indicates the use of higher debts in finaneing the assets oF the business. this watio expresses the relationship betuveert folal assets and long- term debts.BRtro Prorrretaay Equity Proprielary Ratio = Total assets 2019 Proptielary Rafio = Equity ~ Total assets ee ees” 13, 682-89 = 0.6434 working Ratio: Equity = Shame capital + other Equit, 95.92 + 9344.04 = 8842.9¢ Yotal assets = Current assets + Non- Current assets = 6053.35 + 4629.54 13, 6 82. 89 Signipicance : 2.020 Proprietary Batic = Equity Jolal assets = 9453.23 13,587 +62 = 0.69rt Working Note: Equity = Share Capital + other Equil = 95.92 + 9354-3+ = 9453.29 ‘Total assets = Current assets + Non- Current assets = 5825.40 + 4364-92. = 13,584 662 Proprietary ratio has increased in yeor 2020 Qs compared to year 2019, it implies that Jong - term fihanciat position of the Company i's very sound. Jt also implies that q large proportion OF total assets ts provided by equity ang fence the itm i less dependent on external sources of finance.INTEREST COvERAKE AATIO. Interest Coverage tafio = Propit bepore charging Anferesf & Tax aed dnterest charges 2020 diilerest Coverage ratio = Progif bepore! charging tax en and interest ‘Fixed Inferest —— a tereat Fixed interest charges voperges = 3248.85 aren = 3524-64 = 443 . 48.38 = 44.33 times . i : ; = 44.96 ties worbing Note urorking Note? Yixed Interest charges = 48.60 gived Snterest charges ~ 48.38 [sinanee costs] [vinance ests] jt Beare charging fnterest & Tox = |frojit Gejore charging Interest ATex= ~ supreciation & = vepreciation & Amorti's ation amortisation 3449-62 — 540.44 2 421b. 58> 68994 = 3524-64 3248-55 2019 Snlerest Coverage ratio = Eropit bepore charging Interes! Prop Significance * this watio in by the propits available 3020 ratio is 44.86 times , which her Hatio ensures sapety of interest on also indicates that the Long- satis factory . Interest changes ane covered di cates fhow tmany times the to pay interest charges. 3m 2018, ratio was shows ratio 41.33 Himes and in has inerenses. Ihe hig Jong tern debts. qhis ratio teem Solvency position op the company fsJRADE BEtELVABLEs JURNOVER BATIO Trade Beceivables Jurnover Ralio = Credit Fevenue trom operations 2019 Irade receivables Jurnover Balio = _{redit revenue rom operations Average trade receivables = 16,391.48 4191-545 = 13.45 tims Working Notes ° Average trade receivables = opening Ya + Closing YR See 2 = 1244.95 +138-20 jade -a5 ae a 2 1191. 595 Credit revenue prom operations = being taken as total revenue rom operations Significance : Average ‘trade receivables 2.020 ‘Trade receivables turnover ratio= Credit revenue 4rom operations Average trade receivables 14,194.09 4,159.085 14. 60 Hmes Uiorking Notes . Average trade receivables = opening eR + Closing 3R! z = 414h.g95 + M0822 aa = 4499-085 Credit revenue ¢rom operations = being taken a5 total revenue tom operations trade receivables turnover talio has ineveased in 2020 as Compored to year 2019, which shows the amount from trade xecevables is being collected more quichly. By comparing the taldo of year 2020 with 1019 it ds assessed thot the sales policy of the management is eppicient.BADE PAYAGIES. UENOVER BATIO Yrade payable Jurnover Ratio 2019 Trade payasle turnover Ratio = Net credit Purchase Average trade payables 1040.66 1.956.895 = 0.54 Limes working Capdta Note: average trade payables = opening 3/P + Closing 4p c 2 1851-5 + 2062+29 oe 1956-895 Net Credit Purchase = taken as total purchase, Signiplennce : trade payable 2019, it indicale: turnover ratfo fas in s that the trade quickly ushich increases the che Net Gredit purchase Average trade payables 2020 Trade payable turnover ratio Net Credit purchase Perage trade payables es 19iL. 185 0.6% tins urorking Note * Avenage trade Payables opening 4)p_+_tosing 2IF a. 2062.29 + 1960-08 2 494d. 185 Net credit purchase = taken as total purchase creased in 2020 aS compared to year payables are being paid more dit vtorthitiess of the firm.WoBKING CAPITAL TuRNoven. RATIO Working Capital Jurnover ratio = 2019 : working Capital durnover Ratio = Revenue from operations Working Capital 16,394.98 22ite IF = 441 times working Note? working capital = Current assets — Current Liabilities 6053.35 - 3841.41 2214.94 Revenvé from operations [Net sales] = 46,391.48 SIGNIFICANCE + werking capital turnover rotio was 4.44 Himes in Revenue prom operations net sales) working (Capital 2.020 Working Capital durnover Ratio = 14,194.09 2650. 65 2 6.53 tims working Note? wrorbing Capital = turrent assets - current Liobiliti 5825. 70- 3195.05 2630.65 ations Lriet sales] Revenue jrom opel = 19,194-09 2019 and 6.53 Himes in 2020, which shows that ratio has decreased in year 2010. dt may be due to underulitisation op working copitas this ratlo reveals how epfielentty or tay be under- trading . as been utilised in ‘mohing revenue trom working copital f operations .NET Ppoflt BatTIO. Nef Progil Balio = Net Propit vpter fax Revenue prom operations 2019 Net Propit tatio = Nef propitajter tax = a Revenue prom operations 2020 Net propit ratio = _Net propit apter fox, Revenue from opertins ue 2,432-1% x 100 = 2653-95 _y 400 16, 288-48 17,194.09 13.00°]+ = 15.43 f+ working Note * vaoring Note: Net propit = 2432.34 Net psopit = 2653-95 Revenue }rom operations = 46,394.78 | Revenue from operatsins = 14,3909 (wet sales] (Net Sales) Significance ¢ Net Propit yp ralio for year 01g and 2020 was 13.007 and stay respectively . this shous that ratio fas increased in 2020. Jt eplects im provernent” in the Overall e+Helency and propitability ofthe company-: 26. RETURN ON TNVESTMENT Return on Investment = Propit before Interest, tax ÷nds Capital Employee = 1° 2019 1 5.0.I = Net propit before Interest, tax ROT = tlet propit bg : ‘Fore tax, & dividends ae = -% 400 interest & dividends ital emplo ( — ap. ployed Capital émployes ~3824- y top 8942.35 = 3246-85 100 9668. 93. = 33.847 2020 39,48 1 | working Note: ‘Woring Note: . Capital Employed = Shaneholder's tund + | capital employed = shareholder's Non- Current 1iabilitie fund + Non - Current : 8842.96 + 129.34 eee ass os mihi! 9608.5t nut propit Sepore Interest, tax & dividend] Netpropit Sepore interest, tard = Net profit Sepore tax + Finance dividend = set profit Sejore tex + Finance cost a 78.38 = 3446.23 + 18 = "ehtty = 310.95 + 78.60 3248.85) Significance this ratio measures how efficiently the Capitai employed in fhe husiness being used. B.0.I was 39.487. in year 2019 and 33.641: in 2020, it means AOL was higher in 2019 as compared to 2020,Jim 4pan, 2020 as compared, te yor 2019.05 thane i propit as jmoweasial in yuan 2020 one oud : r charges Mumased .2020 REASON 14.60 zimes | the nati has imextosed imCrash Flow Stalemert BS at at March reno PARTICULARS fl. CASH FLOW FROM OPERATING ACTIVITIES Propif Bepore Tax Adjuslments for : pepreciation and Amorfiasfion 540.41 Snlresf Income (41.69 | 4-49 dividend Income (ag.as) | (5-6 dinance Cosfs 48.38 38-60 Allowance for doubfful debls 15.27 Bad kbIs weillen off 6.18 2.53 peperred dncome act) | G09 3490.25 4.43 Nel unrealised foreign exchange loss 3¢.4¢ | (st) Gain on sale of fixed assels (40.50) | (43-34) net gain on Modification of teases (0.96) | (6-0) Net gain apising on sinanciol esses (45.6) | (52.40 Smpaitmenf toss on non- current investment 33.20 | Other Non- Cash adjusimenf 8.04 a | Operating Eropit Bepore working Capifal hangs| 4.31602 | 3.0452 Afjostments for ¢ Decrease/Csnownse) ih rade receivables Aecrense / (Snewase) in financial assets Increase in snvenfories (ata.ad) | (406-69) Decrease in other assets gs.82 | 80.89 (414-38) (46.54) 116.42 48.85PARTICULARS Derrease/Csnereasd in trade payables Increase in provisions Cash generafed from Operating Activities Income far paid Nef Cash generated from operating Activities 3,340.82 (933.35) | 13.39 2,409.44 | 2,395.25 Ig. CASH Flow FROM INVESTING ACTIVITIES Purchase of properly , plant and equipment Sale of property, plant and equipment Payment for acquiring right of use Of 3 Loar givers fo subsidiary (net) Purchase of non-current investments Sale of Hon- Current investments \ 85,50 (483.02) Purchase of fertn deposils Proceeds from smaturify of ferm deposifs Sale of currents snveslments (nt) (306.43) (4,064.20) 26.35 | 15.00 ssefs| (91D G44 (629 | ed 36342 (414-40) 222.53 414-00, 3126 121-42 Infrest Leceived ‘nae nn pitidend received from subbidiaries £13 4 pividend received from others Net Cash (used dm) Investing Activities (. CASH Flow FROM RINANCING ACTIVITIES Proceeds prom sion current porrowisg Receptances (net)35. PARTICUIABS ‘M03. 2020 Repayment of lease Liabilities ee : (46.48) Yinance Costs paid (aps) | (1022.4D pividend and dividend tax paid Net Cash (used in) Financing Activities (2,085.28) [4989- D. NET (o€crense)/INCRERSE IN CASH AND CASN EQUIVALENTS [A+ B8tC¢] (462.43) Add: Cash and cash equivalents as at sapsil | 4.156-3¢ (ash and Cash equivalents as at s1 Maxch| 693.93expen ses seam ‘in percentage ae na ° & s 2 & 5 ? c . s‘nancial Linbilitis 3021. ¢0 Provision 0.92 Current tox tiabililie +h Other current i 44.59 Liabilities a inanciat sobilites 1D proiinn ; current tax tigbililies © otnen current abilities f .33 | 13"BIGLTOGRAPHY| websites : 1, Alfp : funn. google.com 2, wot, asianpaints . com 3. www. toneyconfrol. com 4 lw. company fistory . Com 5 wus. wikipedia.org Pegchers Guidance : 1%, kuldeep Soni Sir oors : 4. Dk Goel [ Accountancy - class XO]