SUBJECT : FINANCIAL ACCOUNTANCY

Created by

Sr.No Div-Roll No Name 1 A-25 Chitralekha.M2 A-17 Neha. K3 A-23 Sejal.M4 A-10 Shahish.G5 A-12 Omkar.K6 A-4 Nishant.B7 A-15 Vivek.K

FINANCIAL STATEMENTS OF

ASIAN PAINTS COMPANY

Changing the look Transforming the outlook

Statement of Profit and Lossfor the year ended 31st March, 2013

AMOUNT AMOUNT(in crores) (in crores)

(I) INCOME Revenue from sale of goods and services (Net of discounts) 9,990.04 8,708.30Less: Exicse duty -1,068.91 783.6Revenue from sale of goods and services 8,921.13 7,924.70

Other Operating Revenue 50.57 39.46Other Income 126.15 141.49

Total Revenue (I) 9,097.85 8,105.65

(II) EXPENSES Cost of Materials Consumed 5,125.48 4,722.74

Purchases of Stock-in-Trade 199.56 138.67

Changes in inventories of finished goods, work in progress and stock-in-trade -136.17 -115.07

Employee Benefits Expense 404.59 341.63

Other Expenses 1,830.97 1,524.44

Total (II) 7,424.43 6,612.41

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) (I) -(II) 1,673.42 1,493.24Depreciation and Amortisation Expense 126.98 99.49

Finance Costs 30.56 30.82

PROFIT BEFORE TAX 1,515.88 1,362.93Less : Tax Expenses

Current Tax 406.03 402.76Deferred Tax 62.59 4.16Excess) tax provision for earlier years -2.74 -2.38Total Tax Expenses 465.88 404.54

PROFIT AFTER TAX 1,050.00 958.39

1 (i) Expense to sales ratio (2012-13

This ratio measures the extent of expense done to achieve sales. This ratio is important as it helps to control the expense so as to increase the overall profit of the company.

(ii) Expense to sales ratio (2011-12)

The expense ratio is more in the current year compared to the previous year.

Expense × 100 = 1830.97 × 100 = 18.3%Sales 9990.04

Expense × 100 = 1524.44 × 100 = 17% Sales 8708.3

2 Growth of Sales

Sales of (2012-13) – Sales of (2011-12) = 9990.04- 8708.3= 1281.74 Sales in 2013 has been increased by 1281.74. This is a good news for the company.

3 (i) Gross Profit Ratio (2012-13)

Gross Profit × 100 = 10405 × 100 = 104.15%Sales 9990.04

Gross Profit × 100 = 9064.3 × 100 = 104.08% Sales 8708.3 The gross profit ratio is more in the current year compared to the previous year

(ii) Gross Profit to Ratio (2011-12)

4 (i) Net profit Ratio (2012-13)

Net profit × 100 = 1050 × 100 = 10.5%Sales 9990.04

(ii) Net profit Ratio (2011-12)

Net profit × 100 = 958.39 × 100 = 11.005%Sales 8708.3

The net profit ratio in the previous year was more compared to the current year.

Balance Sheet as at 31st March, 20132012-13 2011-12AMOUNT AMOUNT

(in crores) (in crores)

EQUITY AND LIABILITIES

Shareholders’ Funds Share Capital 95.92 95.92

Reserves and Surplus 22,926.34 2,391.86

3,022.26 2,487.78NON-CURRENT LIABILITIES

Long Term Borrowings 46.76 52.11

Deferred Tax Liability (Net) 143.33 80.75

Other Long Term Liabilities 0.5 3.62

Long Term Provisions 76.77 65.16 267.36 201.64

CURRENT LIABILITIES Trade Payables 1,214.12 1,034.68

Other Current Liabilities 720.99 606.33

Short Term Provisions 423.55 355.07

2,358.66 2,106.59

Total 5648.28 4,796.01

ASSETS NON-CURRENT ASSETS Fixed Assets 2154.44 1,611.88

Non-current Investments 359.7 279.22

Long Term Loans and Advances 92.88 180.52

CURRENT ASSETS Current Investments 90 263

Inventories 1480.79 1,264.42

Trade Receivables 633.88 500.24

Cash and Bank balances 566.86 500.97

Short Term Loans and Advances 164.08 100.5

Other Current Assets 105.65 95.26

3,041.26 2,724.39

Total 5,648.28 4,796.01

1 i) Earnings per Share(2012-13) EPS = 109.5 Book value per share=315.1/-

ii)Earnings per Share(2011-12) EPS = 99.9 Book value per share=259.4/-

2 Debt Equity ratio

(2012-13) Debt × 100 = 0.02 Equity 1

(2011-12) Debt × 100 = 0.07 Equity 1

3 i)Total Assets Turnover Ratio (2012-13)

Total Assets Turnover Ratio= Net Sales × 100 = 9990.04 × 100 = 176.86% Total Assets 5648.28

ii)Total Assets Turnover Ratio (2011-12)

Total Assets Turnover Ratio= Net Sales × 100 = 8708.3 × 100 = 181.57% Total Assets 4796.01

4 DIVIDEND(2012-13) - i) Percentage is 460%

DIVIDEND(2011-12) - i) Percentage is 400%

5 STOCK TURNOVER RATIO(2012-13) It is calculated by dividing net sales to the inventories which is opening stock less closing stock Hence, the stock turnover ratio is 674.64% STOCK TURNOVER RATIO (2011-12) Hence, the stock turnover ratio is 688.71%

6 i) FIXED ASSET TURNOVER RATIO(2012-13) Net fixed asset is 2,102 Asset turnover ratio is 4.3

(ii) FIXED ASSET TURNOVER RATIO(2011-12) Net fixed asset is 1009 Asset turnover ratio is 7.9

7 (i) CURRENT ASSET RATIO(2012-13) It is calculated by dividing net sales by current assets Hence, Current asset ratio is 328.48%

(ii) CURRENT ASSET RATIO(2011-12) Hence, Current asset ratio is 319.64%

8 (i) CURRENT RATIO(2012-13)

It is calculated by dividing current

assets to current liabilities.

Hence, the current ratio is 128%.

(ii) CURRENT RATIO(2011-12)

Hence, the current ratio is 129.32

9 (i)AVERAGE CAPITAL EMPLOYED(2012-13) Average capital employed are 2866 Return on Average capital Employed is 54%.

(ii)AVERAGE CAPITAL EMPLOYED(2011-12) Average capital employed are 2349 Return on Average capital Employed is 59%

COMMMONSIZE REVENUE STATEMENT FOR THE YEAR ENDED 2013-14PARTICULARS 2013 %

(I) INCOME Revenue from sale of goods and services (Net of discounts) 9,990.04 Less: Exicse duty -1,068.91 Revenue from sale of goods and services 8,921.13

Other Operating Revenue 50.57 Other Income 126.15

Total Revenue (I) 9,097.85 100.00

(II) EXPENSES Cost of Materials Consumed 5,125.48 56.33

Purchases of Stock-in-Trade 199.56 2.19

Changes in inventories of finished goods, work in progress and stock-in-trade -136.17 -1.49

Employee Benefits Expense 404.59 4.44

Other Expenses 1,830.97 20.12

Total (II) 7,424.43 81.60

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND

AMORTISATION (EBITDA) (I) -(II) 1,673.42 18.39Depreciation and Amortisation Expense 126.98 1.39

Finance Costs 30.56 0.33

PROFIT BEFORE TAX 1,515.88 16.66Less : Tax Expenses

Current Tax 406.03 4.46Deferred Tax 62.59 0.68Excess) tax provision for earlier years -2.74 -0.03Total Tax Expenses 465.88 5.12

PROFIT AFTER TAX 1,050.00 11.54

COMMONSIZE BALANCE SHEET AS ON 2012-13PARTICULARS 2013 %EQUITY AND LIABILITIES Shareholders’ Funds

Share Capital 95.92 1.69

Reserves and Surplus 22,926.34 40.65

3,022.26 53.5NON-CURRENT LIABILITIES

Long Term Borrowings 46.76 0.82

Deferred Tax Liability (Net) 143.33 2.53

Other Long Term Liabilities 0.5 0.008

Long Term Provisions 76.77 1.35 267.36 4.73

CURRENT LIABILITIES Trade Payables 1,214.12 21.49

Other Current Liabilities 720.99 12.76

Short Term Provisions 423.55 7.49

2,358.66 41.75

CAPITAL EMPLOYEED 5648.28 100

ASSETS

NON-CURRENT ASSETS Fixed Assets

Tangible Assets 2074.91 36.73Intangible Assets 26.98 0.47Capital work-in-progress 52.55 0.93

2154.44 38.14Non-current Investments 359.7 6.36

Long Term Loans and Advances 92.88 1.64

CURRENT ASSETS Current Investments 90 1.59

Inventories 1480.79 26.21

Trade Receivables 633.88 11.22

Cash and Bank balances 566.86 10.03

Short Term Loans and Advances 164.08 2.9

Other Current Assets 105.65 1.87 3,041.26 53.84

CAPITAL EMPLOYEED 5,648.28 100

Comparative Revenue Statement for the year ended 31st March 2013PARTICULARS 2013 2012Change in Amount Change in %

(I) INCOME

Revenue from sale of goods and services (Net of discounts) 9,990.04 8,708.30 1281.74 14.71Less: Exicse duty -1,068.91 783.6 -1852.51 -236.41Revenue from sale of goods and services 8,921.13 7,924.70 996.43 12.5

Other Operating Revenue 50.57 39.46 11.11 28.15Other Income 126.15 141.49 15.34 10.84

Total Revenue (I) 9,097.85 8,105.65 992.2 1.22

(II) EXPENSES Cost of Materials Consumed 5,125.48 4,722.74 402.74 8.52

Purchases of Stock-in-Trade 199.56 138.67 60.89 43.91

Changes in inventories of finished goods, work in progress and stock-in-trade -136.17 -115.07 -21.1 -18.33

Employee Benefits Expense 404.59 341.63 62.96 18.42

Other Expenses 1,830.97 1,524.44 306.53 20.1

Total (II) 7,424.43 6,612.41 812.02 12.28

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND

AMORTISATION (EBITDA) (I) -(II) 1,673.42 1,493.24 180.18 12.06Depreciation and Amortisation Expense 126.98 99.49 27.49 27.63

Finance Costs 30.56 30.82 -0.26 0.84

PROFIT BEFORE TAX 1,515.88 1,362.93 152.95 11.22Less : Tax Expenses

Current Tax 406.03 402.76 3.27Deferred Tax 62.59 4.16 58.43 0.81Excess) tax provision for earlier years -2.74 -2.38 -0.36 1404.56

Total Tax Expenses 465.88 404.54 61.34 15.16

PROFIT AFTER TAX 1,050.00 958.39 91.61 9.55

Comparative Balance Sheet As At 31st March 2013 PARTICULARS 2013 2012Change in Amount Change in %

EQUITY AND LIABILITIES

Shareholders’ Funds Share Capital 95.92 95.92 0 0Reserves and Surplus 22,926.34 2,391.86 20534.48 858.51

3,022.26 2,487.78 534.48 1.48NON-CURRENT LIABILITIES

Long Term Borrowings 46.76 52.11 -5.35 -10.266Deferred Tax Liability (Net) 143.33 80.75 62.58 77.49Other Long Term Liabilities 0.5 3.62 -3.12 -86.18Long Term Provisions 76.77 65.16 11.61 17.81

267.36 201.64 65.72 32.59CURRENT LIABILITIES

Trade Payables 1,214.12 1,034.68 179.44 17.34Other Current Liabilities 720.99 606.33 114.66 18.91Short Term Provisions 423.55 355.07 68.48 19.28

2,358.66 2,106.59 252.07 11.96Total 5648.28 4,796.01 852.27 17.77

ASSETS

NON-CURRENT ASSETS Fixed Assets

Tangible Assets 2074.91 987.79 1087.12 110.05Intangible Assets 26.98 21.25 5.73 26.96Capital work-in-progress 52.55 602.84 -550.29 -91.28

Non-current Investments 359.7 279.22 80.48 28.82Long Term Loans and Advances 92.88 180.52 -87.64 -48.54

CURRENT ASSETS Current Investments 90 263 -173 -65.77Inventories 1480.79 1,264.42 216.37 17.11Trade Receivables 633.88 500.24 133.64 26.71Cash and Bank balances 566.86 500.97 65.89 13.15Short Term Loans and Advances 164.08 100.5 63.58 63.26Other Current Assets 105.65 95.26 10.39 10.9Total 5,648.28 4,796.01 852.27 17.77

Cash Flow Statementfor the year ended 31st March, 2013

AMOUNT AMOUNT(in crores) (in crores)

(A) Cash Flow From Operating Activities Profit before prior period item, tax and after excceptional item 1,515.88 1,362.93 Adjustments for : Depreciation/ Impairment 126.98 99.49 Interest income -4.99 -2.52 Dividend income -32.92 -57.42 Finance costs 30.56 30.82 Provision for doubtful debts and advances 0.98 -1.5 Bad debts written off 0.71 2.96 Net unrealised foreign exchange (gain)/ loss -7.23 6.2 Loss/(Profit) on Sale of long term investments -26.2 -32.46 Loss/(Profit) on Sale of short term investments -1.02 -0.83 Loss/(Profit) on Sale of assets -3.61 0.1

Operating Profit before working capital changes 1,599.14

1,407.77

Adjustments for : Trade Receivables -135.34 -191.4 Other Receivables -53.38 -92.39 Inventories -216.37 -231.18 Trade and other payables 290.39 387.21 Cash generated from Operations 1,484.44 1,280.01 Income Tax paid (net of refund) -403.32 -399.53 Net Cash generated from Operating Activities 1,081.12 880.48

(B) Cash Flow from Investing Activities

Purchase of Fixed Assets -585.49 -740.67 Sale of Fixed Assets 4.83 0.47 Loans to subsidiaries -1.41 -0.05 Repayment of loan - Subsidiaries 1.34 Purchase of long term Investments - others -185.38 -290.39 Purchase of long term Investments - Joint Venture -0.09 -15 Sale of long term Investments 304.2 393.46 Net profit on sale of short term investments 1.02 0.83 Interest received 3.19 2.25 Dividend received 32.92 57.42 Net Cash used in Investing Activities -424.87 -591.68

(C) Cash Flow from Financing Activities

Proceeds from long term borrowings 1.98 Proceeds from short term borrowings 8.27 109.68 Repayment of long term borrowings -5.59 -4.13 Repayment of short term borrowings -118.78 -3.98 Finance Costs Paid -31.44 -31.38 Dividend and Dividend tax paid -444.79 -367.25 Net Cash used in Financing Activities -590.35 -297.06

(D) Net Increase/(Decrease) In Cash and Cash Equivalents 65.9 -8.26

Cash and Cash Equivalents as at 1st April 500.97 509.01

Cash and Cash Equivalents as at 31st March 566.87 500.97

Trend Balance Sheet as on 31st March, 2013PARTICULARS 2013 2012 2013% 2012%

EQUITY AND LIABILITIES

Shareholders’ Funds

Share Capital 95.92 95.92 100 100

Reserves and Surplus 22,926.34 2,391.86 95851.00% 100

3,022.26 2,487.78 82.31 100NON-CURRENT LIABILITIES

Long Term Borrowings 46.76 52.11 89.73 100

Deferred Tax Liability (Net) 143.33 80.75 177.49 100

Other Long Term Liabilities 0.5 3.62 13.81 100

Long Term Provisions 76.77 65.16 117.81 100 267.36 201.64 132.59 100

CURRENT LIABILITIES Trade Payables 1,214.12 1,034.68 117.34 100

Other Current Liabilities 720.99 606.33 118.91 100

Short Term Provisions 423.55 355.07 119.28 100

2,358.66 2,106.59 111.96 100

Total 5648.28 4,796.01 117.77 100

ASSETS NON-CURRENT ASSETS Fixed Assets

Tangible Assets 2074.91 987.79 210.05 100Intangible Assets 26.98 21.25 100Capital work-in-progress 52.55 602.84 126.96 100

2154.44 1,611.88 133.66 100

Non-current Investments 359.7 279.22 12.88 100

Long Term Loans and Advances 92.88 180.52 51.45 100

CURRENT ASSETS Current Investments 90 263 34.22 100

Inventories 1480.79 1,264.42 117.112 100

Trade Receivables 633.88 500.24 126.71 100

Cash and Bank balances 566.86 500.97 113.15 100

Short Term Loans and Advances 164.08 100.5 163.26 100

Other Current Assets 105.65 95.26 110.9 100

3,041.26 2,724.39 111.63 100

Total 5,648.28 4,796.01 117.77 100