Professional Documents
Culture Documents
of Asian Paints
BALANCE SHEET
2500
2000
1500
1000
500
0
Mar ' 12
-500
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
80.00
60.00
Equity share capital
Reserves & surplus
Secured loans
40.00
Unsecured loans
Net Block of Fixed Assets
Total net current assets
20.00
0.00
Mar ' 12
-20.00
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
2000
1500
1000
500
0
0.5
-500
-1000
-1500
1.5
2.5
3.5
4.5
5.5
Observations :
The Equity Share Capital remains constant
through the years
The Reserves and Surplus are increasing each
year
The Secured loans are reducing each year . The
unsecured loans are however increasing :
The company might be paying off its long term
debts. It is becoming more easy for the
company to get unsecured loans which
suggests an improved credit rating. The
company is relying more on short term debt
than long term for financing as compared to
before.
Fixed assets have increased ; the company is
investing more to acquire fixed assets.
8,000.00
7,000.00
6,000.00
Operating income
Cost of sales
5,000.00
Operating profit
Adjusted PBT
4,000.00
Adjusted PAT
Reported net profit
Retained earnings
3,000.00
2,000.00
1,000.00
0.00
0
0.5
1.5
2.5
3.5
4.5
300.00
250.00
Operating income
200.00
Cost of sales
Operating profit
Adjusted PBT
Adjusted PAT
150.00
100.00
50.00
0.00
0
100
80
Operating income
Cost of sales
Operating profit
60
Adjusted PBT
Adjusted PAT
Reported net profit
Retained earnings
40
20
0
Mar ' 12
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
Observations :
Operating income is increasing through the years
Cost of Sales has almost doubled from 2008 to 2012.
Possible Causation factors inflation surged to near double digit levels
The concerns in Euro zone and Middle East remain
unresolved and the US economy is still not out of the
woods.
(Chairmans Letter of the Annual Reports 2012.)
Operating Profit has more than doubled during the
prescribed period , mainly on the back of buoyant
domestic demand. (Chairmans Letter of the Annual
Reports 2012.)
PBT & PAT also have increased steadily.
Reported Net Profit has increased by a huge amount
from 2008-2012 and 17.3% in the last year alone.
CASH FLOW
STATEMENTS
1,000.00
500.00
0.00
0.5
-500.00
-1,000.00
1.5
2.5
3.5
4.5
5.5
1200.00
1000.00
800.00
400.00
200.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
20
0
1
-20
-40
-60
-80
Observations :
Cash from operating activities reduced from 2008 to
2009 but hence forth always increased.
Cash from investing activities has also increased over
the years but not by a huge margin.( The company
probably hasnt invested outside ?)
Cash from financing activities was increasing till 2011
but 2012 sees a slight drop.
Comparing the profit with the cash flows we see that
only a small portion of the profit is in the form of cash
and cash equivalents. Probably the cash is just enough
to fund the working capital and the rest of the profit is
plugged back into the company.
300
250
200
Dividend (%)
150
100
50
0
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Observations :
At the outset , the dividend being
paid out to equity share holders is
on a upwards trend as depicted by
the graph
So the company is performing well
even after issuing dividends to the
equity share holders which shows
the financial capability of the
company and its favour of
RATIOS
Mar ' 09
Mar ' 11
Mar ' 12
10
15
20
25
30
35
40
45
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
0.5
1.5
2.5
3.5
4.5
5.5
0.09
0.08
0.07
0.06
0.05
Long term debt / Equity
Total debt/equity
0.04
0.03
0.02
0.01
0
Mar ' 12
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
1.2
0.8
Current ratio
0.6
Quick ratio
0.4
0.2
0
Mar ' 12
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
10
8
Inventory turnover ratio
6
0
Mar ' 12
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
120
100
80
60
40
20
0
1
Observations :
The dividend paid per share has been increasing steadily
from 2008-2012.This is a measure of a company's
performance, simply because it is linked to the profits.
The operating margin and the gross profit margins have
infact dropped over the past 2 years. This is linked to the
increasing Cost of Sales ( as discussed in the profit and
loss account)
Looking at the leverage ratios , the company is steadily
reducing long term debt whereas equity remains
constant. The company is financed heavily by equity. Low
debt-to-equity ratios may also indicate that a company is
not taking advantage of the increased profits that
financialleverage may bring. On the other hand ,
investors usually prefer low debt-to-equity ratios because
their interests are better protected in the event of a
business decline.
25.00
20.00
15.00
asian paints
kansai nerolac
berger
akzo nobel
10.00
5.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
35.00
30.00
25.00
20.00
asian paints
kansai nerolac
berger
15.00
akzo nobel
10.00
5.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
8.00
7.00
6.00
5.00
asian paints
kansai nerolac
4.00
berger
akzo nobel
3.00
2.00
1.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
80.00
70.00
60.00
50.00
asian paints
kansai nerolac
40.00
berger
akzo nobel
30.00
20.00
10.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
Observations :
16.00
14.00
12.00
10.00
Asian Paints
Kansai Nerolac
8.00
Berger Paints
Akzo Nobel
6.00
4.00
2.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
100.00
90.00
80.00
Asian Paints
Kansai Nerolac
70.00
Berger Paints
Akzo Nobel
60.00
50.00
40.00
0.5
1.5
2.5
3.5
4.5
5.5
24.00
21.00
18.00
15.00
Asian Paints
Kansai Nerolac
12.00
Berger Paints
Akzo Nobel
9.00
6.00
3.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
12.00
10.00
8.00
Asian Paints
Kansai Nerolac
6.00
Berger Paints
Akzo Nobel
4.00
2.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
60.00
50.00
40.00
Asian Paints
Kansai Nerolac
30.00
Berger Paints
Akzo Nobel
20.00
10.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
70.00
60.00
50.00
40.00
30.00
Asian Paints
Kansai Nerolac
Berger Paints
20.00
Akzo Nobel
10.00
0.00
0.5
1.5
2.5
3.5
4.5
5.5
-10.00
-20.00
Observations
When it comes to the sources of funds,
Akzo Nobel has absolutely no loans or
debts and relies only on equity share
capital and reserves and surplus.
When it comes to the usage of funds Asian
Paints has the highest net block of fixed
assets and Berger paints has the highest
current assets as a percentage of the total
usage of funds.