Asian Paints

Fig 1.1

 Balance sheet Mar 19 Mar 18

12 mths
  12 mths

EQUITIES AND LIABILITIES --in Rs. Cr. -- -- in Rs. Cr.--

SHAREHOLDER'S FUNDS

Equity Share Capital 95.92 95.92

Total Share Capital 95.92 95.92
Reserves and Surplus 8,791.64 7,702.24
Total Reserves and Surplus 8,791.64 7,702.24
Total Shareholders Funds 8,887.56 7,798.16

NON-CURRENT LIABILITIES

Long Term Borrowings 10.89 9.87

Deferred Tax Liabilities [Net] 416.35 270.33
Other Long Term Liabilities 2.90 3.26
Long Term Provisions 118.48 107.35
Total Non-Current Liabilities 548.62 390.81

CURRENT LIABILITIES

Short Term Borrowings 4.35 0.00

Trade Payables 2,062.29 1,851.50
Other Current Liabilities 1,597.28 1,504.61
Short Term Provisions 52.27 42.85
Total Current Liabilities 3,716.19 3,398.96
Total Capital And Liabilities 13,152.37 11,587.93

ASSETS

NON-CURRENT ASSETS

Tangible Assets 4,580.57 2,477.44

Intangible Assets 89.97 91.09
Capital Work-In-Progress 179.31 1,391.84
Fixed Assets 4,849.85 3,960.37
Non-Current Investments 1,817.37 1,547.33
Long Term Loans And Advances 76.00 79.08
Other Non-Current Assets 355.80 500.06
Total Non-Current Assets 7,099.02 6,086.84

CURRENT ASSETS

Current Investments 1,146.63 1,030.01

Inventories 2,585.10 2,178.43
Trade Receivables 1,244.95 1,138.20
Cash And Cash Equivalents 167.52 120.84
Short Term Loans And Advances 13.98 12.17
OtherCurrentAssets 895.17 1,021.44
Total Current Assets 6,053.35 5,500.17
Total Assets 13,152.37 11,587.93

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 384.23 1,108.50

Sources of Finance
As at 31ST March 2019
Equity (In Cr.)
1) Equity Share Capital 95.92
2) Other Equity 8791.64
Total 8887.56

Loans (In Cr.)

 Secured Loans 10.89
 Unsecured Loans 4.35
Total Debt 15.24

Equity Ratio : Total Equity/ Total Assets

: 8887.56/13152.37 = 67.57%

Debt Ratio : Total debt/ Total Assets

: 4264.81/13152.37 = 32.42%
Debt Equity Ratio: Total Liabilities/ Equity
: 4264.81/8887.56 = 48% = 1/2
 It is a measure of the degree to which a company is financing its operations
through debt versus wholly-owned funds. A low risk company and a better
investment.
Capital Expenditure
  Plant, Property & Equipment - 4,580.57 Cr.
 Investments in Subsidaries and associate - 830.35
 Non Current Investments – 987.02
 Current Investments – 1146.63
Financial Risks
Fig 1.2
Profit & Loss account ------------------- in Rs. Cr. -------------------
  Mar '19 Mar '18 Mar '17
  12 mths 12 mths 12 mths
Income
Sales Turnover 16,391.78 14,559.55 14,360.43
Excise Duty 0.00 391.69 1,713.32
Net Sales 16,391.78 14,167.86 12,647.11
Other Income 252.45 285.50 305.55
Stock Adjustments 247.86 -154.12 515.58
Total Income 16,892.09 14,299.24 13,468.24
Expenditure
Raw Materials 9,706.25 7,885.66 7,426.64
Power & Fuel Cost 88.60 85.50 87.98
Employee Cost 902.79 791.08 742.83
Selling and Admin Expenses 695.40 558.24 516.50
Miscellaneous Expenses 1,938.65 1,772.76 1,717.90
Total Expenses 13,331.69 11,093.24 10,491.85
  Mar '19 Mar '18 Mar '17
  12 mths 12 mths 12 mths
Operating Profit 3,307.95 2,920.50 2,670.84
PBDIT 3,560.40 3,206.00 2,976.39
Interest 30.01 21.06 18.86
PBDT 3,530.39 3,184.94 2,957.53
Depreciation 382.18 311.11 295.43
Profit Before Tax 3,148.21 2,873.83 2,662.10
PBT (Post Extra-ord Items) 3,148.21 2,873.83 2,662.10
Tax 1,039.81 971.03 855.00
Reported Net Profit 2,134.76 1,894.80 1,801.72
Total Value Addition 3,625.44 3,207.58 3,065.21
Equity Dividend 853.68 987.98 762.56
Corporate Dividend Tax 173.50 199.44 154.33
Per share data (annualised)
Shares in issue (lakhs) 9,591.98 9,591.98 9,591.98
Earning Per Share (Rs) 22.26 19.75 18.78
Equity Dividend (%) 1,050.00 870.00 1,030.00
Book Value (Rs) 92.66 81.30 73.97

EPS = Net incomefit(Net profit)/shares in issue(outstanding shares)

=(2134.76/95911.98)*100 = 22.25

Operating leverage
Mar 19 (In Cr.) Mar 18 (Cr.)

Operating profit - 3307.95 2920.50

Net Sales - 16,391.78 14,167.86

Changes in operating Profit - 0.1327

Changea in Net sales – 0.1569
Degree of Operating Leverage = Percentage Change in OP/Percentage change in Sales
= 13.27%/16%
= 0.84
Since the company have higher operating leverage, it means that they have large proportion
of fixed cost as compared to variable cost.
Financial Leverage = Total Debt/ Share Holder’s Equity
= (Long term borrowings + short term borrowings)/ Share Holder’s Equity
= (13.79+1601.63)/8887.56 = 0.1817

The Company does not have higher financial ratio, means there is low risk for shareholderes

The overall operating leverage and financial leverage for the company turned out to be on
the positive side. This describes that the company was gaining both in terms of operations
and financial positions in the year ending 2019. The profit ratio for the firm increased slower
than the previous year.

Profitability of company

PROFITABILITY RATIOS MAR 19 Mar 18

PBDIT Margin (%) 21.88 22.57

PBIT Margin (%) 19.54 20.37

PBT Margin (%) 19.36 20.22

Net Profit Margin (%) 13.02 13.37

Return on Networth / Equity (%) 24.01 24.29

Return on Capital Employed (%) 33.96 35.25

Return on Assets (%) 16.23 16.35

Sales growth of the company

18000 16391.78
16000 14167.86
14000 12647.11
12000
Net Sales

10000
8000
6000
4000
2000
0
2019 2018 2017

Percentage Sales Growth in 2018-19

Net sales in 2019- Net sales in 2018)/ Net sales in 2018
= (16391.78- 14167.86)/ 14167.86
= 16%
Percentage Sales Growth in 2018-19
(Net sales in 2018- Net sales in 2017)/ Net sales in 2017 = (14167.86-12647.11)/ 12647.11
= 12%
The increase in ratios over the past year is beneficial for the company presenting the final
statements. Here we can see the continous increase in sales ratio by 33.33%. It descibes that
company was able to make sales more than the previous years.
CASH FLOW ACTIVITES
Cash Flow ------------------- in Rs. Cr. -------------------
  Mar 19 Mar 18
  12 months 12 months
Net Profit/Loss Before Extraordinary Items And Tax 3,174.57 2,865.83

Net Cashflow From Operating Activities 2,184.14 2,136.09

Net Cash Used In Investing Activities -815.05 -1,370.96
Net Cash Used From Financing Activities -895.80 -1,239.05
Net Inc/Dec In Cash And Cash Equivalents 473.29 -473.92

Cash And Cash Equivalents Begin of Year 683.07 1,156.99

Cash And Cash Equivalents End Of Year 1,156.36 683.07

 ASIAN PAINTS's cash flow from operating activities (CFO) during FY19 stood at Rs
2,184.14 Cr. is an improvement of 2% on a YoY basis.
 Cash flow from investing activities (CFI) during FY19 stood at Rs -815.05 Cr, there
is a decrease in investing activities by -41% on a YOY basis.
 Cash flow from financial activities (CFF) during FY19 stood at Rs -895.80 Cr., there
is a decrease in the financial activities of the company by -28% on a YoY basis.
Operating Costs

Operating Cost Mar 19 Mar 18

Raw Materials 9,706.25 7,885.66
Selling and Admin 695.40 558.24
Expenses
Employee Cost 902.79 791.08
Power & Fuel Cost 88.60 85.50
Miscellaneous Expenses 1,938.65 1,772.76
Total Expenses 13,331.69 11,093.24

Operating cost is increased from year 2018 to 2019 by 20.17%.

 Berger Paints
Berger Paints India

Balance Sheet ------------------- in Rs. Cr. -------------------

  Mar 19 Mar 18
  12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 97.11 97.10
Total Share Capital 97.11 97.10
Revaluation Reserves 0.00 0.00
Reserves and Surplus 2,275.24 2,046.51
Total Reserves and Surplus 2,275.24 2,046.51
Total Shareholders Funds 2,372.35 2,143.61
NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 60.87 58.60
Other Long Term Liabilities 14.39 5.26
Long Term Provisions 3.16 2.92
Total Non-Current Liabilities 78.42 66.78
CURRENT LIABILITIES
Short Term Borrowings 215.34 143.27
Trade Payables 968.14 932.57
Other Current Liabilities 184.34 202.49
Short Term Provisions 18.67 15.98
Total Current Liabilities 1,386.49 1,294.31
Total Capital And Liabilities 3,837.26 3,504.70
ASSETS
NON-CURRENT ASSETS
Tangible Assets 996.56 911.04
Intangible Assets 7.36 4.29
Capital Work-In-Progress 147.73 87.27
Fixed Assets 1,151.65 1,002.60
Non-Current Investments 331.80 303.18
Long Term Loans And Advances 16.42 19.99
Other Non-Current Assets 56.31 79.72
Total Non-Current Assets 1,556.18 1,405.49
CURRENT ASSETS
Current Investments 245.51 227.59

1,149.13 939.36

Trade Receivables 574.33 598.01

Cash And Cash Equivalents 131.77 120.57
Short Term Loans And Advances 7.98 1.96
OtherCurrentAssets 172.36 211.72
Total Current Assets 2,281.08 2,099.21
Total Assets 3,837.26 3,504.70

Sources of Finance
As at 31ST March 2019
Equity (In Cr.)
3) Equity Share Capital 97.11
4) Researves 2275.24
Total 2372.35
Loans (In Cr.)
 Secured Loans 130.34
 Unsecured Loans 85.00
Total Debt 215.34

Year 2019
 Equity Ratio : Total Equity/ Total Assets
 2,372.35/3,837.2 = 62%
 Debt Ratio : Total debt/ Total Assets
 1,386.49/3,837.26 = 36%
 Debt Equity Ratio: Debt/ Equity
 1,386.49/2,372.35 = 3/5

 Capital Expenditure
 Plant, Property & Equipment – 996,56 Cr.
 Non Current Investments – 331.80 Cr.
 Current Investments – 245.51 Cr.
Financial Risks

Berger Paints India

------------------- in Rs. Cr. -------------------
Profit & Loss account
  Mar '19 Mar '18 Mar '17
  12 mths 12 mths 12 mths
Income
Sales Turnover 5,515.55 4,839.37 4,723.52
Excise Duty 0.00 115.58 498.20
Net Sales 5,515.55 4,723.79 4,225.32
Other Income 22.98 47.69 105.54
Stock Adjustments 168.67 87.66 120.26
Total Income 5,707.20 4,859.14 4,451.12
Expenditure
Raw Materials 3,592.42 2,884.23 2,569.63
Power & Fuel Cost 49.48 40.00 36.86
Employee Cost 311.67 269.84 244.51
Selling and Admin Expenses 180.01 222.23 216.40
Miscellaneous Expenses 740.45 651.75 616.06
Total Expenses 4,874.03 4,068.05 3,683.46
  Mar '19 Mar '18 Mar '17
  12 mths 12 mths 12 mths
Operating Profit 810.19 743.40 662.12
PBDIT 833.17 791.09 767.66
Interest 20.79 16.20 7.76
PBDT 812.38 774.89 759.90
Depreciation 122.17 111.92 98.00
Profit Before Tax 690.21 662.97 661.90
PBT (Post Extra-ord Items) 690.21 662.97 661.90
Tax 253.23 229.97 219.25
Reported Net Profit 439.03 431.84 444.09
Total Value Addition 1,281.61 1,183.82 1,113.83
Equity Dividend 174.78 169.93 97.09
Corporate Dividend Tax 35.93 34.59 19.76
Per share data (annualised)
Shares in issue (lakhs) 9,711.30 9,710.31 9,709.87
Earning Per Share (Rs) 4.52 4.45 4.57
Equity Dividend (%) 190.00 180.00 175.00
Book Value (Rs) 24.43 22.08 19.70

Operating leverage

Mar 19 (In Cr.) Mar 18 (Cr.)

Operating profit - 810.19 743.40

Net Sales - 5,515.55 4,723.79

Changes in operating Profit - 0.0898

Changea in Net sales – 0.1676
Operating Leverage = Percentage Change in OP/Percentage change in Sales
= 9%/17%
= 0.536
Financial Leverage = Total Debt/ Share Holder’s Equity
= (Long term borrowings + short term borrowings)/ Share Holder’s Equity
= (0+215.34)/2372.35 = 0.1817

Profitability of company

PROFITABILITY RATIOS MAR 19 MAR 18

PBDIT Margin (%) 15.66 16.72

PBIT Margin (%) 13.44 14.35

PBT Margin (%) 12.55 14.01

Net Profit Margin (%) 7.95 9.14

 Return on Networth / Equity (%) 18.50 20.14

Return on Capital Employed (%) 30.26 30.67

Return on Assets (%) 11.44 12.32

Total Debt/Equity (X) 0.09 0.07

Asset Turnover Ratio (%) 143.73 134.78

Sales growth of the company

6000 5515.55
5000 4723.79
4225.32
4000
Net Sales

3000
2000
1000
0
2019 2018 2017

Percentage Sales Growth in 2018-19

=(Net sales in 2019- Net sales in 2018)/ Net sales in 2018
= (5,515.55- 4,723.79)/ 4,723.79
= 16.76% = 17%
Percentage Sales Growth in 2018-19
(Net sales in 2018- Net sales in 2017)/ Net sales in 2017 = (4,723.79-4,225.32)/4,225.32
= 11.79% =12%
The increase in ratios over the past year is beneficial for the company presenting the final
statements. Here we can see the continous increase in sales ratio by 41.66%. It descibes that
company was able to make sales more than the previous years.

CASH FLOW ACTIVITES

Cash Flow ------------------- in Rs. Cr. -------------------

  Mar '19 Mar '18
  12 mths 12 mths
Net Profit Before Tax 692.26 661.81
Net Cash From Operating Activities 495.01 399.43
Net Cash (used in)/from
-369.97 -168.92
Investing Activities
Net Cash (used in)/from Financing Activities -158.96 -195.04

Net (decrease)/increase In Cash and Cash Equivalents -33.92 35.47

Opening Cash & Cash Equivalents 61.16 25.69
Closing Cash & Cash Equivalents 27.24 61.16

 Berger Paints cash flow from operating activities (CFO) during FY19 stood at Rs
495.01 Cr. is an improvement of 24% on a YoY basis.
 Cash flow from investing activities (CFI) during FY19 stood at Rs -369.97 Cr, there
is a decrease in investing activities by 119% on a YOY basis.
 Cash flow from financial activities (CFF) during FY19 stood at Rs -158.96 Cr., there
is a decrease in the financial activities of the company by -18% on a YoY basis.

Operating Cost

Operating Cost Mar 19 Mar 18

Raw Materials 3,592.42 2,884.23
Selling and Admin Expenses 180.01 222.23
Employee Cost 311.67 269.84
Power & Fuel Cost 49.48 40.00
Miscellaneous Expenses 740.45 651.75
Total Expenses 4,874.03 4,068.05

Operating cost is increased from year 2018 to 2019 by 19.81%.

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