By

Group I Anvesh Sameer Rajat Alex Arun

About KNPL
Kansai Nerolac Paints Ltd. (KNPL), a subsidiary of Kansai Paint, Japan was established in the year 1920. It is the second largest coating company in India and the market leader in Industrial Coatings. KNPL has a pan-India presence and serves its customers through its 74 sales locations and 5 factories. The manufacturing operations extend across India and are located in Bawal in haryana, Lote in Maharashtra, Jainpur in UP, Chennai and hosur in Tamil Nadu

Products of KNPL
For the Industrial Coatings, KNPL has a series of products in the Automotive, Powder and Liquids domain. For the Decorative business, the organization is known for its innovative products and services and has many firsts to its credit like launch of low Volatile Organic Compound (VOC), low odour and lead free(no added lead) paints.

History of financial performance

Balance Sheet Long term Liabilities & Owners Equity

Sources of funds
Share Holders' Funds
Share Capital No. of shares issued and paid up Face value per share Total Reserves Capital Reserve Share Premium Account General Reserve Total Surplus from P/L Account 5,38,91,972 10 5389.20 lacs 30.37 1255.55 35345.71 36631.63 lacs 49595.87 lacs

Long Term Liabilities

Secured Loans Unsecured Loans Total 811.41 7436.99 8248.40 lacs

Sources of funds
49595.87 5389.20

Profits

811.41 35345.71 Secured Loans

7436.99 Unsecured Loans

Share Capital

Reserves

Owners Equity
91616.70

+
Total Funds
99865.10

Loans
8248.40

Balance Sheet Fixed Assets

Fixed Assets:
Tangible assets (Land, Buildings, Machinery etc.) Intangible assets (Software) Total Depreciation and Amortization Provision for write down in value of FA Capital WIP Advances for Cap Ex Total Fixed Assets 66936.27 591.48 67527.75 (39624.00) (83.02) 7516.47 2840.99 38178.19

Balance Sheet Investments & Deferred Tax Assets

Long Term Investments Current Investments Total Investments Deferred tax assets Deferred tax liabilities Net amount - 17,480.52 - 19,701.76 - 37,182.28 1,239.08 102.22 1,341.30

Balance Sheet Current Assets

Inventories Sundry Debtors
Outstanding for more than 6 months Other Debts Provision for doubtful debts Total

35,410.25

284.19 - 25,783.87 (61.53) - 26,025.99 7.78 3,961.28 3,969.06 1,721.15 2,020.30 42.39 1,239.31 5,023.15

Cash and Bank balances

Cash on hand With scheduled banks Total

Loans and advances

Advances recoverable in cash or in kind Advance payment of tax net of provisions Advance payment of fringe benefit tax net Balance with central excise, customs, port trust Total

Total Currents Assets

- 70,428.45

Balance Sheet Current Liabilities

Liabilities
Acceptances Sundry creditors Unclaimed dividend Total Liabilities

- 1,185.75 - 35,125.02 43.60 - 36,354.37 1,380.06 36.11 5,389.19 874.26 2,553.57 175.00 502.56 10910.75

Provisions

Taxation net of advances Fringe benefit tax net of advances Proposed dividend Tax on proposed dividend Indirect taxes Provision for warranties Provision for compensated absences Total Provisions

Total Current Liabilities Net Current Assets(CA-CL)

-

47,265.12 - 23,163.33

Income Statement-Revenue
Paints, varnishes, enamels and powder coatings Processing charges Others (Including sale of scrap and agency commission) Total Rebates, discounts, allowances etc Gross Sales Excise duty Other Income Dividend from trade investments (long term) Dividend from other than trade investments : Interest on other than trade investments (Gross) Profit on sale of fixed assets Profit on sale / redemption of investments Long term Current Provision for write down in value of fixed assets Insurance and other claims Indirect tax claims Lease rentals Miscellaneous income Total 2,48,102.23 147.59 1,069.41 2,49,319.23 12,744.59 2,36,574.64 22,701.62 99.23 1,541.21 192.98 3.78 178.44 53.92 16.44 90.21 145.16 9.24 15.48 2,346.09

Total Revenue

2,38,920.73

Income Statement-Expenses
A. Cost of materials / products
Raw materials consumed : Opening stock Purchases Sales Closing stock Packing materials consumed : Opening stock Purchases Closing stock Adjustment for stock : Opening stock WIP FG Purchase of finished products Closing stock WIP FG Excise duty difference b/w closing stock and opng stk Total 8,067.06 1,26,934.10 24.93 11,670.12 403.88 16782.4 446.68

2,021.82 14,055.56 6,253.47 2,420.57 20,678.32 746.86 1,40,024.53

Income Statement-Expenses
B. Employees remuneration and benefits
Salaries, wages, bonus, commission and other related expenses Company's contribution to provident fund and other funds Workmen and staff welfare expenses Total 8,204.60 578.53 381.07 9,164.20 1,571.39 3,344.84 748.20 634.28 9,180.85 8,211.15 4,919.84 7,023.49 35,634.04 4,935.48 84.28

C. Operating and other expenses

Stores and spare parts consumed Power and fuel Processing charges Repairs and maintenance Consignment, freight and forwarding charges Advertising and selling expenses Cash discount Other Administrative expenses Total

D. Depreciation and amortisation E. Interest and finance charges Total Expenses (A+B+C+D+E)

1,89,842.53

Income Statement
NET REVENUE Gross Sales Excise duty Net sales Other income EXPENDITURE PROFIT BEFORE EXCEPTIONAL ITEM AND TAXATION Profit on sale of long term trade investment PROFIT BEFORE TAXATION PROVISION FOR TAXATION PROFIT AFTER TAX Balance brought forward BALANCE AVAILABLE FOR APPROPRIATIONS Proposed dividend Tax on proposed dividend General reserve BALANCE CARRIED TO BALANCE SHEET 2,36,574.64 -22,701.62 2,13,873.02 2,346.09 2,16,219.11 1,89,842.53 26,376.58 2,536.65 28,913.23 8,314.78 20,598.45 37,320.73 5,389.20 874.26 2,059.85 8,323.31 49,595.87

Earning per share

Values used in calculating Earnings Per Share: Numerator: Profit after tax Denominator: Weighted average number of Equity Shares Basic and diluted earnings per Equity Share Rs

Rs. 205,98,45,000.00 5,38,91,972.00 Rs. 38.22

Solvency ratios
Measure of how well a company can satisfy its long term and short term obligations
1. Quick Ratio (Acid Test)

Cash  Accounts Receivable  Advances 3,969.06  26,025.99  5,023.15 ! ! 0.74 Current Liabilities 47,265.12
2. Current Ratio

70,428.45 urrent ssets ! ! 1.49 urrent iabilities 47,265.12

3. Current Liabilities to Net Worth Ratio

Current Liabilities 47,265.12 ! ! 0.52 Net Worth 91,616.70

4. Debt to Net Worth Ratio

Debt 8,248.80 ! ! 0.09 et Worth 91,616.70

Efficiency ratios
Measures the quality of the business receivables and how efficiently it uses and controls its assets
1. Collection Period Ratio

Accounts Receivable 26,025.99 ! ! 44.41days Sales z 365 days 2,13,873.02 z 365

2. Inventory Turnover

ost of ales 1,40,024.53 ! ! 3.95times Inventory 35,410.25

3. Asset Turnover

Sales Revenue 2,38,920.73 ! ! 1.62ti es Total Assets 1,47,130.22

4. Working Capital turnover

ales evenue 2,38,920.73 ! ! 10.31times Working apital 23,163.33

Profitability ratios
Measures the performance of the company on how profitable the business is for the investments made
1. Return on Assets (ROA)

20,598.45 Pro it a ter Tax ! ! 14% Total Assets 1,47,130.22

2. Return on Investment (ROI)

20,598.45 Pro it a ter Tax ! ! 20.62% Long Term Liabilitites  Owners' Equity 99,865.10
3. Return on Shareholders Equity

Pro it a ter Tax 20,598.45 ! ! 22.48% Owners' Equity 91,616.70

4. Price/Earnings Ratio (P/E ratio)

Market price per share 889.95 ! ! 23.28times Earning per share 38.22