Annual Report Project

asianpaints
Presented by: 29- Madhulika Arora 27- Karan Khilnani 44- Sakshi Maheswari 5- Akanksha Vaish 47- Saumitra

asianpaints
NAME OF COMPANY: Asian Paints INDUSTRY: Paint Industry What, specifically, does your company do?
Asian Paints is Indias largest paint company and Asias third largest paint company, with a turnover of Rs 77.06 billion. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. Thus the group is primarily into paint manufacturing.

Gather some basic information on your company

This report is for fiscal year ending: 2011 Who is the independent auditor of your company? (pg 28) M/s. Shah & Co., Chartered Accountants and M/s. B S R & Associates, Chartered Accountants, Joint Auditors What type of opinion did the auditor issue? (pg 32) There is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to sale of goods and services. We have not observed any major weakness in the internal control system during the course of the audit

The Income Statement (pg 79)

What amount did your company report for each of the following? Revenue from sale of goods and services(schedule: H) Revenue from sale: Less: Discount Sales (Net of Discount) 8610.76Cr 307.26Cr 8303.50Cr

Operating Income Income tax expense Interest expense Total expenses (including interest and taxes) Net income Basic Earnings per Share

1395.60Cr 378.89Cr 22.23Cr 6907.52Cr 881.35Cr Rs 87.91

The Balance Sheet (pg 78)

Does your organization's annual report include a classified balance sheet (segregates current and long term assets and liabilities)? Yes A comparative balance sheet (presents more than one year)? If so, what years are presented for each statement? Yes; 2009-10 and 2010-2011 How much was reported for each item below? o Current assets 342.05 crore (pg 81)

o Property, plant and equipment 1242.2 crore (pg 83) Property: Freehold Land Leasehold Land 122.08 crore 94.97 crore

Plants: Buildings 398.40 crore Leasehold Buildings 8.94 crore Plant & Machinery 537.70 crore Scientific Research Building 33.99 crore

Equipment: Furniture & Office equipment Scientific Research Equipment o Other long-term assets

27.96 crore 18.16 crore 514.45 crore (pg 83)

Other fixed asset 30.48 crore Add Capital Work in Progress: 43.32 crore Goodwill on consolidation 37.19 crore Total long term investment 403.46 crore o Current liabilities o Long-term liabilities o Share Capital o Share Premium o Reserves and Surplus 1640.37 crore(pg 78) 62.97 crore (pg 82) 95.92 crore (pg 36) None 2091.50 crore (pg 36)

Current assets are what percent of total assets? (pg 79) 13% Property, Plant and Equipment are what percent of total assets? (pg 83) 47% Inventory is what percent of total current assets? (pg 78) 56.29% Are any commitments are contingencies shown on the Balance Sheet? If so, what are they? (pg 63) Closing balance Provision for Excise: 1.15 Crore Provision for sales Tax: 8.61

Statement of cash flows (pg 82)

Amount of cash flow from Operating Activity Rs. 761.28 crores

Amount of cash flow from Investing Activity Rs. (414.89) crores Amount of cash flow from Financing Activity Rs. (331.51) crores What was the amount of change in cash? Rs. 12.87 crores

Shareholders Equity(pg 81)

Does your company have any preferred stock, if yes, how many shares are issued and what is the par value? Yes, the company has preferred stock. 50,000 stocks are issued at par value of Rs.100/- each. Totally contributing to Rs. 0.50 crores to share capital How many common shares are issued? Number of common shares: 9,95,00,000. Were any common shares issued in the current year, if yes, how many? No, there were no common shares issued this year (Previous year 9,95,00,000)

Other information
What is the revenue recognition policy of the company? Pg95 Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of sales tax/VAT and is net of returns. Sales are stated gross of excise duty as well as net of excise duty; excise duty being the amount included in the amount of gross turnover. The excise duty related to the difference between the closing stock and opening stock is recognised separately as part of material cost. Revenue from service is recognised on rendering of services to customers. Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on the time proportion basis. Give the break up of increase in fixed assets for the current year pg82 Purchase of Fixed Assets 156.10crore Sale of Fixed Assets ( 5.79crore) What was the total amount of depreciation/amortization for the year? pg81 113.13crore What method of depreciation is used by the company? pg94 Depreciation method used is Straight Line Depreciation What are the depreciation rates used by the company? Pg94 Depreciation is applied at rates permissible under applicable local laws or at such rates so as to write off the value of assets over their useful life. How much cash did the company spend in purchasing fixed assets? pg82 156.10crore What amount of total borrowing did the company repay? pg82 6.38 crore What was the amount of new borrowings by the company?

pg82 11.93 Crore What is amount of provision for bad debts for the year? pg89/pg93 33.01 Crore/2.39crore What was the amount of bad debts written off? pg93 4.52 Crore What is the provision for warranties? No provision How much warranty expense was recorded for the year? N/A What is the amount paid for auditors remuneration for the year? pg93 3.44 Crore How much dividends in total and on per share did the company declare for the year? pg90 225.41crore and 23.5per share What were the advertising/publicity expenses for the year? pg93 342.58 Crore What was the total income/expenditure in foreign currency? pg63 The total expenditure is 28.98 and total income is 43.95 crores