MAJOR PROJECT REPORT

ON
DIGITAL MARKETING STRATEGY OF EXPERT
TRAINING INSTITUTE

Submitted in Partial Fulfillment for the award of the

Bachelor of Business Administration 2016-19

Under the guidance of

Dr . Sangeeta Malik

Professor ,Maims

Submitted by :

Naman Jain

Roll no : 06961101716 Batch no. BBA5b2s

Maharaja Agarsen Institute Of Management Studies

AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

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 STUDENT UNDERTAKING

This is to certify that I (naman jain) have completed the Project titled “(marketing and

financial analysis of asian paints)” in “(Maharaja Agarsen Institute Of Management

Studies)” under the guidance of “(Dr. Sangeeta Malik)” in partial fulfillment of the

requirement for the award of degree of Bachelor of Business Administration at

Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of

work & I have not submitted it earlier elsewhere.

NAMAN JAIN

Name of the Student

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 CERTIFICATE

This is to certify that the project titled “The Study of marketing and financial analysis
of ASIAN PAINTS” is an academic work done by NAMAN JAIN submitted in the
Partial fulfilment of the requirement for the award of the degree of Bachelor of Business
Administration from Maharaja Agarsen Institute of Management Studies, Delhi,
under my guidance and direction. To the best of my knowledge and belief the data and
information presented by her in the project has not been submitted earlier.

Dr Sangeeta Malik
Dean , Maims

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 ACKNOWLEDGEMENT

No task is a single person effort, same is with this project. Thus I would like to extend my
sincere thanks to all those people who helped me in accomplishing my project.

I owe my project success to all faculties for providing us with this wonderful opportunity
and guidance. This project provided me a platform to increase my knowledge and
empowered me with a better understanding of concepts in the real world scenario.

I, with immense pride and deep sense of gratitude give sincere thanks to Dr.
SangeetaMalik ma’am during the tenure of my project, without whom this whole have
been an impossible task. With constant help and time-to-time suggestions to me come out
with this dissertation, in a presentable form. I hereby extend my sincere thanks and
gratitude to her.

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 PREFACE

In any organization, the two important financial statements are the Balance Sheet and
Profit & Loss Account of the business. Balance Sheet is a statement of financial position
of an enterprise at a particular point of time. Profit & Loss account shows the net profit or
net loss of a company for a specified period of time. When these statements of the last
few year of any organization are studied and analyzed, significant conclusions may be
arrived regarding the changes in the financial position, the important policies followed
and trends in profit and loss etc. Analysis and interpretation of financial statement has
now become an important technique of credit appraisal. The investors, financial experts,
management executives and the bankers all analyze these statements. Though the basic
technique of appraisal remains the same in all the cases but the approach and the
emphasis in the analysis vary. A banker interprets the financial statement so as to
evaluate the financial soundness and stability, the liquidity position and the profitability
or the earning capacity of borrowing concern. Analysis of financial statements is
necessary because it helps in depicting the financial position on the basis of past and
current records. Analysis of financial statements helps in making the future decisions and
strategies. Therefore it is very necessary for every organization whether it is a financial or
manufacturing, to make financial statement and to analyze it.

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 INDEX
Serial no. Topic Page no

1 Student undertaking 1

2 Certificate 2

3 Acknowledgement 3

4 Preface 4

5 Chapter 1 – Introduction to the asian 6

paints
 About the organization
 History
 Marketing and advertising
 Global presence
 Environment
 Health and safety
 Research and development
 Awards and recognition

6 Chapter 2- Research Methodology 15

 Meaning of Research:
 Objectives
 Research Problem
 Research Design

7 Chapter 3 – Research Analysis 23

 Marketing strategies
 Swot analysis
 Financial analysis
 Ratios

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8 Chapter 4 – findings and suggestions 52
 Findings
 Suggestions
 Conclusion

9 Bibliography 56

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 CHAPTER 1

INTRODUCTION TO ASIAN PAINTS

 About the organization

 History
 Marketing and advertising
 Global presence
 Environment
 Health and safety
 Research and development
 Awards and recognition

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 About the organization

Asian Paints Limited is an Indian multinational paint company headquartered

in Mumbai, Maharashtra. The Company is engaged in the business of manufacturing,
selling and distribution of paints, coatings, products related to home decor, bath fittings
and providing of related services. Asian Paints is India's largest and Asia's fourth largest
paints corporationas of 2015, it has the largest market share with 54.1% in the Indian
paint industry.

History
The company was set up in a garage in Mumbai by four friends ChampaklalChoksey,
ChimanlalChoksi, Suryakant Dani and Arvind Vakil in February 1942. During the World
War II and Quit India Movement of 1942, a temporary ban on paint imports left only
foreign companies and Shalimar Paints in the market. Asian Paints took up the market
and reported annual turnoverof ₹ 23crores in 1952 but with only 2% PBT margin. By
1967 it became the leading paints manufacturer in the country.
The four families together held the majority shares of the company. But disputes started
over the global rights in 1990s when the company expanded beyond India. The disputes
resulted in Choksey selling their 13.7% shares and exiting in 1997. Champaklal died in
July 1997 and his son Atul took over. After failed collaboration talks with the British
company Imperial Chemical Industries, Choksey's shares were mutually bought by the
remainder three family and Unit Trust of India. As of 2008, the Choksi, Dani and Vakil
families hold a share of 47.81%.

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 Marketing and advertising
In 1950s the company launched a "washable distemper", which was a balance between
the cheap dry distemper that peeled easily and the more expensive plastic emulsions.
Promoting their brand Tractor Distemper, the company used "Don't lose your temper, use
Tractor Distemper" in their advertisings. In 1954, "Gattu" – a mischievous boy with a
paint bucket in his hand – was launched as mascot. Created by R. K. Laxman, the mascot
found appeal with the middle-classes. He was used only in print advertisements and
packaging till 1970s and by 1990s was also seen on television advertisements. Gattu
helped in bringing the commodity-led business of painters to the actual end users of
home-owners. Ogilvy & Mather, the advertising agency associated with Asian Paints,
launched marketing strategy by focusing on festive occasions in 1980s with their tag
line "HarGharKuchKehta Hain" (Every home says something about its owner). Relating
with festivals and important life events like marriages and child birth, the company
advertised it as an occasion to paint homes by connecting on emotional level. In 1990s,
the advertisements focused on the home exteriors focusing on how the paints could keep
the exteriors timeless. The company revamped its corporate identity in 2000s and axed
Gattu as their mascot and later changed its "Asian Paint" logo to a shorter "AP".

Global presence
Today, the Asian Paints group operates in 16 countries across the world across four
regions viz. Asia, Middle East, South Pacific and Africa through the six corporate brands
viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings, Taubmans and
Kadisco. The company exited its Caribbean Operations (Jamaica, Barbados and Trinidad
& Tobago) in July 2017.

 Asian Paints in India, Bangladesh, Nepal Sri Lanka and Indonesia (Asia)
 SCIB Paints in Egypt (Middle East)
 Berger in Singapore (Asia) ; UAE, Bahrain and Oman (Middle East);
 Apco Coatings in Fiji, Tonga, Solomon Islands and Vanuatu (South Pacific)
 Kadisco in Ethiopia (Africa)
 Taubmans in Fiji and Samoa (South Pacific)

ECONOMIC ENVIRONMENT
The financial year 2016-17 has been a year marked with both excitement and challenges
for the global as well as the Indian economy. Some of the events that took place during
the course of this year could very well turn out to be the defining moments for the world
economy at large. The sheer scale and swiftness with which the Indian Government
demonetised almost 86% of the currency notes in circulation in November 2016 is one
such event. Coming at a time when the Indian economy was just beginning to look up on
the back of positive sentiments from private consumption and normal monsoon, the cash

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shortage and payment disruptions caused by demonetisation, strained the consumption
and business activity for a major part of the second half of the year. Consequently, GDP
growth for the year is expected to be almost 1% lower at 6.7% than that in the previous
year. Capital investments still remain stagnant with an overhang of spare capacity in
many industries and corporate balance sheets still remain stretched hindering their ability
to invest on any future uptick in demand. Merchandise exports continued to contract,
partly as a result of the lower commodity prices as well as due to the weak global
demand. On the fiscal front, the position is expected to be much better with the
Government expected to meet its fiscal deficit target at 3.5% of GDP and the current
account deficit narrowing down further to about 1.1% of GDP. Inflation, though inching
up in the last few months, also stayed below the RBI’s target of 5%, leading to an
accommodative monetary policy for most part of the year.
The Indian rupee stayed relatively stable this year, trading in a range of 66-67 to USD for
most part of the year before seeing a sharp appreciation during the close of the financial
year. It was also encouraging to see the Government move ahead on clearing the
legislative hurdles for the implementation of the Goods and Services Tax (GST), touted
as the biggest tax reform for the country. All indications now suggest that GST should get
implemented in the second quarter of the financial year and although uncertainties remain
around the design as well as readiness of the entire economy to implement this structural
change, is poised to provide a fillip to India’s economic growth as it will create a single
national market and enhance the efficiency of interstate movement of goods and services
apart from moving a large part of the informal sector within the formal set-up of the
economy.
On the global front, two key events have led to a lot of uncertainty and spurt in volatility
across markets. In June 2016, UK voted to leave the European Union leading to an
immediate ratings downgrade and financial market volatility. The financial markets have
seemingly factored in this event but the impending round of trade negotiations between
UK and the European Union, point to a tough road ahead. The November 2016 US
election outcome was also a major surprise and led to a lot of capital flight away from the
emerging markets, including India, on the hopes of strong pro-US growth policy rollouts
from the new Government.

INTERNATIONAL OPERATIONS
The international operations of the Company are spread across Geographies. Some of the
key markets faced challenging business Conditions due to the subdued economic
environment in those Countries. However, most of the International units managed to tide
over the challenges and delivered strong performance. Egypt, which is the largest
International unit of the Company, faced a volatile year due to a severe foreign exchange
shortage in the country. To tide over this crisis, the Egyptian government embarked upon
several fiscal reforms during the year, one of them being the sharp devaluation of its
currency. This had significant impact on the economy as raw material prices and inflation
soared. Despite all these challenges, Egypt posted robust performance by taking required
measures. Post devaluation, Egyptian dollar is now a free floating currency and after an
initial period of instability, investor confidence has improved, reflected by the

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improvement in forex reserves, which have gone up from a low of USD 16 Billion to
around USD 28 Billion.

HOME IMPROVEMENT BUSINESS

With the vision of being a complete décor solutions provider to help customers create
their dream homes, the Company forayed in the Home Improvement business 3 (three)
years back. The Company is present in the Kitchen and the Bath business under the
Home Improvement segment.

 KITCHEN BUSINESS
Sleek today enjoys the exclusivity of being the only player in the Kitchen space that is
into both ‘Kitchen Components’ and ‘Full Kitchen Solutions’. It operates the same
through a network of distributors, dealers and retail stores. During the year, the
component segment grew well. Growth was impacted in the November to January period
due to demonetization. New products such as “Tuff Advance” soft close drawer systems,
appliances, and hardware such as hinges & channels have driven growth in the segment.
More than 1,000 sub-dealers were added to the network. The network today stands at
around 3,200 sub-dealers.

 BATH BUSINESS
During the year (2017), there was a strong focus on driving improvements in
manufacturing, logistics & service and sales & marketing in the bath fittings business.
The Company has worked on improving material service to the network. Additionally,
there is thrust on adding new network as well as adding more showrooms to the existing
areas. The aforesaid enhancement will also aid expansion of the network for the Royale
range of bath fittings.

HUMAN RESOURCES
The Company strongly believes in enhancing the value of its people asset consistently.
The current talent landscape is being driven by many disruptive factors and the Company
is working towards managing the talent landscape in a way such that the Asian Paints
brand delivers on its promise to its customer as well as on the Company’s vision.
Managing an innovative and inclusive culture, managing the process and culture
integration and building the employer brand are some of the high imperative areas that
are helping the Company manage the talent landscape.
In this regard, steps were taken to create a culture and people framework which is best
suited for transforming business models, changing customer needs and sustainable
growth.

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The Company promotes a workplace where extremely diverse set of talents can connect,
contribute and thrive in partnership with business leaders. The Company believes that
these steps
shall help the endeavor of delivering the Signature Asian Paints Employee Experience.

People development has always been a focus area for the Company. Learning needs have
been addressed during the year through new programs in the areas of strategy, execution
and critical thinking. To provide a truly holistic platform for people, job rotations have
been strategically increased and all Movement and development decisions are
institutionalised. Work on developing a 360° Feedback Framework and Transition
programmes at all levels of the organisation has been carried out during the year.
Leadership Competency Framework design and mapping was completed during the year.
Based on the pilot approach, changes in the functional competency framework have been
identified and will be taken up.

In accordance to the long-term needs of the people, the Company has extensively started
using data insights through interactive dashboards in people decisions, focussed on
capability building and strengthened the roles of Business Human Resource (BHR) as
strategic business partners. An automated grievance handling system was developed and
implemented at plants. This will help in capturing the grievances at these locations and
tracking the closure within targeted timelines.

On 1st February, 2017, Asian Paints completed 75 years of existence. This milestone was
celebrated by employees across all the Asian Paints locations across the globe. All the
offices were decorated to mark the event and to create an atmosphere of celebration. An
online portal was launched as a platform for employees to engage on this theme through
various activities.
An employee CSR initiative, Kaleidoscope, was launched to begin a wonderful journey
to touch multiple lives and inspire even more, to reach out to others on this occasion of
75th year of Asian Paints. Employees volunteered to work with various NGOs across
India in activities ranging from reading sessions for children, excel lessons for youth,
sports drill sessions, science fair, etc. and even included volunteering in old-age homes.
In the Kaleidoscope launches programme’s lifecycle of less than 50 days, 7,500
Beneficiaries were reached and 1,350 Employee Volunteers participated with 5,100
Volunteer hours’ contribution.

ENVIRONMENT, HEALTH AND SAFETY

Environment, Health and Safety (EHS) is one of the primary focus areas for your
Company. The Company considers compliance to statutory EHS requirements as the
minimum performance standard and is committed to go beyond and adopt stricter
standards wherever appropriate. All the Company’s paint manufacturing facilities are
certified to the ISO 14001 environmental certification. Last year, the Company released
its 2nd Sustainability Report, wherein disclosures on environmental performance were
detailed. The Company will continue to publish the Sustainability Report going forward

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as well, with sufficient information around all aspects of environmental, health & safety
performance and activities. In 2016-17, the six decorative paint factories have continued
to act upon the following areas of environmental sustainability:
a. improving water-neutrality by investing in community rain
water harvesting structures
b. reducing non-process fresh water consumption
c. reducing trade-effluent generation
d. reducing hazardous waste generation
e. reducing non-hazardous waste generation
f. reducing electricity consumption

RESEARCH AND DEVELOPMENT

The Company continued with its endeavor to be an innovative, agile and responsive
world-class R&D organisation, aligned to future customer needs and catalysing the
growth of Company across existing and future businesses. The thrust on experimenting
with new ideas and building rapid prototypes is the backbone of the Innovation journey.
These initiatives have helped the Company to launch several pioneering products in the
market with distinctive value proposition for end consumers. The Company launched the
Air Cleaning Paint with the brand of ‘Royale Atmos’ last year. Similarly, this year the
Company has launched top of the range exterior emulsion paint named ‘ProtekDuralife’
which offers 15 years’ durability along with 10 years of anti-algal and waterproofing
warranty as a system. To upgrade the distemper market, the Company has launched
‘Tractor Aqualock’ entry level emulsion with good waterresistance property. In addition,
the Company has made forayinto the adhesive market with the introduction of ‘True Grip
Ultra’ adhesive. Many other innovative products are in the pipeline

AWARDS AND RECOGNITIONS

During the financial year 2016 – 17, the Company was conferred with ‘Outstanding
Company of the year’ award for 2016 at the ‘CNBC TV18 India Business Leader award’
ceremony held in March, 2017. Asian Paints efforts towards sustainable practices were
recognized by distinguished jury under the Chairmanship of Justice M. N.
Venkatachaliah, former Chief Justice, Supreme Court of India, by awarding the
prestigious ‘Golden Peacock’ for sustainable practices in the paints sector.

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CHAPTER-2
RESEARCH AND METHODOLOGY

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RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this
reason that research methodology, which we used at the time of conducting the research,
needs to be elaborated upon. It may be understood as a science of studying how research
is done scientifically. So, the research methodology not only talks about the research
methods but also considers the logic behind the method used in the context of the
research study. Research Methodology is a way to systematically study and solve the
research problems. If a researcher wants to claim his study as a good study, he must
clearly state the methodology adapted in conducting the research the research so that it
way be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes:-

✦ Objective of study

✦ Meaning of Research.

✦ Research Problem.

✦ Research Design.

✦ Data Collection method.

✦ Analysis and interpretation of Data

✦ Limitation of study

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OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how a goal is to be achieved. Every study
must have an objective for which all the efforts have been done. Without objective no
research can be conducted and no result can be obtained. On the basis of objective all the
research process is followed. Objectives are the main aspect of every study. The objective
of the study gives direction to go through the research problem. It guides the researcher
and keeps him on track.
OBJECTIVE 1: TO STUDY ABOUT MARKETING OF ASIAN PAINTS

OBJECTIVE 2: SWOT ANALYSIS OF ASIAN PAINTS

OBJECTIVE 3: MARKETING STRATEGIES OF ASIAN PAINTS

OBJECTIVE4: TO KNOW ABOUT FINANCIAL STATEMENTS

OBJECTIVE 5 : RATIO ANALYSIS OF ASIAN PAINTS

Meaning of Research:

Research is defined as “a scientific and systematic search for pertinent information on a

specific topic”. Research is an art of scientific investigation. Research is a systematized
effort to gain now knowledge. It is a careful investigation or inquiry especially through
search for new facts in any branch of knowledge. Research is an academic activity and
this term should be used in a technical sense. Research comprises defining and redefining
problems, formulating hypothesis or suggested solutions. Making deductions and
reaching conclusions to determine whether they if the formulating hypothesis.

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Research Problem

The first step while conducting research is careful definition of Research Problem. “To
ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this world.
Every researcher has to face many problems which conducting any research that’s why
problem statement is defined to know which type of problems a researcher has to face
while conducting any
study. It is said that,
“Problem well defined is problem half solved.”
Basically, a problem statement refers to some difficulty, which researcher
experiences in the context of either a theoretical or practical situation and
wants to obtain the solution for the same.
The problem statement here is:-

“TO MAKE A FINANCIAL ANALYSIS OF FINANCIAL STATEMENTS OF ASIAN

PAINTS”

Research Design

A research designs is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. Research Design is the conceptual structure within which research in
conducted. It constitutes the blueprint for the collection measurement and analysis of
data. Research Design includes an outline of what the researcher will do frOm writing the
hypothesis and it operational implication to the final analysis of data. A research design is
a framework for the study and is used as guide in collection and analyzing the data. It is a
strategy specifying which approach will be used for gathering and analyzing the data. It
also include the time and cost budget since most studies are done under these two cost
budget since most studies are done under theses two constraints. The design is such
studies must be rigid and not flexible and most focus attention on the followin

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RESEARCH DESIGN USED IN THE STUDY:

Descriptive research design is used in this study because it will ensure the minimization
of biasness and maximization of reliability of data collected. Descriptive study is based
on some previous understanding of the topic. Research has got a very specific objective
and clear cut data requirements The researcher had to use fact and information already
available through financial statements of earlier years and analyse these to make critical
evaluation of the available material. Hence by making the type of the research conducted
to be both Descriptive and Analytical in nature. From the study, the type of data to be
collected and the procedure to be used for this purpose were decided.

❖ Data Collection Method

The process of data collection begins after a research problem has been
defined and research design has been chalked out. There are two types of
data –

PRIMARY DATA -
It is first hand data, which is collected by researcher itself. Primary data is collected by
various approaches so as to get a precise, accurate, realistic and relevant data. The main
tool in gathering primary data was investigation and observation. It was achieved by a
direct approach and observation from the officials of the company.

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SECONDARY DATA - it is the data which is already collected by someone else.
Researcher has to analyze the data and interprets the results. It has always been important
for the completion of any report. It provides reliable, suitable, adequate and specific
knowledge.

TYPE OF DATA USED IN THE STUDY

The required data for the study are basically secondary in nature and the data are
collected from

▪ The audited reports of the company.

▪ INTERNET – which includes required financial data collected from ASIAN
PAINT’S official website i.e. and some other websites on the internet for the
purpose of getting all the required financial data of the company and to get
detailed knowledge about Asian Paints for the convenience of study.

METHODS OF ANALYSIS

The data collected were edited, classified and tabulated for analysis. The analytical
tools used in this study are:

ANALYTICAL TOOLS APPLIED:

The study employs the following analytical tools:

1. Comparative statement.
2. Trend Percentage.
3. Ratio Analysis.
4. Cash Flow Statement.

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Limitations of study

▪ Difficulty in data collection.

▪ Limited knowledge about the PAINT INDUSTRY in the initial stages.
▪ Employees of Asian Paints were hesitant in providing the internal information about
Asian Paints.
▪ The analysis and interpretation are based on secondary data contained in the
published annual reports of ASIAN PAINTS for the study period.
▪ Due to the limited time available at the disposable , the study has been confined for a
period of 3 years (20014-2017).
▪ Ratio itself will not completely show the company’s good or bad financial position.
▪ Inter firm comparison was not possible due to the non availability of competitors
data.
▪ The study of financial performance can be only a means to know about the financial
condition of the company and cannot show a through picture of the activities of the
company.

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 CHAPTER -3

RESEARCH ANALYSIS
 Marketing research of Asian Paints
 Swot analysis of Asian Paints
 Study of financial analysis
 Ratios

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 OBJECTIVE 1: TO STUDY ABOUT MARKETING OF ASIAN PAINTS

Asian Paints is India's largest paint company and ranked among the top ten Decorative
coatings companies in the world with a turnover of INR 66.80 billion. Asian Paints along
with its subsidiaries have operations in 17 countries across the world with 23 paint
manufacturing facilities, servicing consumers in 65 countries through Berger
International, SCIB Paints - Egypt, Asian Paints, Apco Coatings and Taubmans.
"Asian Paints aims to become one of the top five Decorative coatings companies world-
wide by leveraging its expertise in the higher growth emerging markets. Simultaneously,
the company intends to build long term value in the Industrial coatings business through
alliances with established global partners."
With Economic performance as objective the organization now has to develop short-term
goals to reach the overall objective. These Goals are usually functional target such as
production, Sales, new market develop, new product development and technology up
gradation, once the goal are determined the strategies can be evolved to meet the goals.
The organization is now on the way to achieve the overall objective of Economic
(i) Customer Asset : The settings up Asian paints colour world, a chain of state art paint
shop, is a major step towards building customer asset. At the same time company is
focusing more in rural areas than urban area and continuing to provide good and quality
service to the customer.
(ii) Technology asset : Asian paint is one of first Indian company to go hi-tech. Asian
paint has always kept its competitor at bay by constantly re-innovating its business
process and system.
(iii) Employee Asset : Asian paint always praise its employee for its success in the
market. Company always considers employee as a biggest factor of its success.
(iv) Dealer vendor relationship : Asian paint always maintain a close relationship with
its dealers because company think that they play a major role in Asian paint recent
success.
(v) Brand Asset : Although it is operating in the commodity market but still Asian paint
is investing heavily in branding. Gattu- Asian paint official mascot is very popular in
India.

Divisional objective:
Asian paint has following division that is as follows:

Decorative segment
Asian paint is the leader in this segment. It is ahead that its competitor Nerolac and
Berger in Decorative segment company still have certain objective for this sector that to
increase it sales and to acquire maximum position in the market share in Indian paint
market.

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Objective for decorative segment :

 To expanding its range in the economy segment.

 To strengthen its position in the emulsion segment in both exterior and interior
emulsion.
 To continue its strategy of pricing aggression and increase it sales and to gain the
market share along with a good operating margin.
 To focus on the rural market as company believes as it as been its objective since
the beginning.
 To focus more on adcampaign for enhancement of their sales in urban as well as
rural market.

Industrial segment
Asian paint second line of production deals with the industrial coating. The constraint in
these segment is that it is not as successful as the decorative segment. In these sector it
has to face a stiff competition from its nearest competitor Nerolac and Berger Paints.
Objective for Industrial segment :

 To build new infrastructure in the country for Industrial coating to increase the
production capacity.
 To develop the quality of the product with a higher technological up gradation.
 To increase the sales of the Industrial coating with the help of proper Ad.
campaign programme.

Automotive segment
Automotive is the third segment of the Asian paint. It is a product which company target
for the automobile market in India as well as abroad.
Objective of automotive segment :

 To put emphasis on continuous improvement in quality and productivity.

 To put emphasis on detect prevention
 To reduce variation and wastage in the supply chain

Paint
Asian paint details with product that is
(i) Decorative (ii) Industrial (iii)Automative.
The product that this project will deal with will exclusively be decorative pains.
Decorative Paints includes the following categories of product

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EXTERIOR WALLS :
Asian Paints offers a range of emulsion paints for your exterior walls such as ACE, Apex,
Apex Ultima, Apex Duracast and more, based on the specific demand of surface area.
Interior Walls

Distempers
Distempers offer strong performance to the interior wall surface in terms of protection
and adhesion. Tractor Acrylic Distemper, with better durability, is one of the best
performing distemper made by Asian Paints.

Emulsions
Interior emulsions are advanced water based paints with better quality and shade range.
Adhesion to wall surface, anti fungal properties and durability is more in emulsions.

Enamels
Enamels is a premium brand from Asian Paints, it is superior in terms of performance and
gives that Perfect Finish for the walls.

Competitors :
In terms of gross sales we can rank the competitors of Asian paints as :

 Nerolac paints
 Berger Paints
 ICI Paints.

In industry they are recognized as trailing firms. But with their high growth in the
industry the competitors can touch or even overtake Asian paints, for that the three main
competitors have different strategies. Initially one common strategy must be their mind -
is to increase the market share.

Marketing Objective:
Asian paints the leader in Indian paint Industry has a very strong marketing division.
With more than 35% market share Asian paint is still growing in leaps and bounce to
achieve higher targets. It is changing fundamentally with two objective in mind a huge
ramp in the market share and better growth over the next three years. Previously
company used to function as undifferentiated organization. But now they have divided it
into three section each. And each section has its own independent support system, targets
and performance parameter.

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Company marketing objectives are as follows:

 Asian paint is highly accepted in the urban sector and now the company is trying
to access the rural market with low price product like Utsav targeting every
customer of all income level.
 To increase its sales in the urban sector Asian paints today have 30 colour world
located in different cities of India where any body can have the real taste of the
colour.
 Online marketing has become an integrated part of the company and company is
trying install a strong integrated for online marketing.
 Asian paints international unit, which have a dedicated marketing team is also
targeting for a rapid growth in overseal market.
 Asian paint is following unlque strategy of marketing in the rural areas by using
their official mascot. According to the company it feels that picture are more
dominant than name.
 Asian paint website Asian paints com provides several information regarding the
product and various other information that is being required by customer and dea

Volumes and Profits :

Indian paint industry is less than ½ of the size of the Chinese paint industry by volume
and less than 1/5 of the size of the US paint Industry by volume.
In terms of Per capita consumption, the Indian paint industry lags behind the Pakistan and
Sri Lankan markets also.

Market Size:
The market size of the Indian paints sector has been pegged at Rs 170 bn in value terms
and is very fragmented. The per capita consumption of paints in India stands at 0.5 kg per
annum as compared to 1.6 kgs in China and 22 kgs in the developed economies. India's
share in the world paint market is just 0.6%.
The unorganised sector controls around 35% of the paint market, with the organised
sector accounting for the balance. In the unorganised segment, there are about 2,000 units
having small and medium sized paints manufacturing plants. Top organised players
include Asian Paints (30% market share), Kansai Nerolac (20% market share), Berger
Paints (19% market share) and ICI (12% market share).
Decoratives: Major segments in decoratives include exterior wall paints, interior wall
paints, wood finishes and enamel and ancillary products such as primers, putties etc.
Decorative paints account for over 75% of the overall paint market in India. Asian Paints
is the market leader in this segment. Demand for decorative paints arises from household
painting, architectural and other display purposes. Demand in the festive season
(September-December) is significant, as compared to other periods. This segment is price
sensitive and is a higher margin business as compared to industrial segment.
Industrial: Three main segments of the industrial sector include automotive coatings,
powder coatings and protective coatings. Kansai Nerolac is the market leader in this

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segment. User industries for industrial paints include automobiles engineering and
consumer durables. The industrial paints segment is far more technology intensive than
the decorative segment.

Customer Retention
Asian Paints Limited, India's largest paint company, has a reputation for professionalism
and fast-track growth.
Customers are at the core of all Asian Paints business activities. A simple but unbeatable
concept of "going where the customer is" drives all its major initiatives.
The company has an enviable reputation in the corporate world for professionalism, fast-
track growth and customer-centricity.
The Key Challenges addressed by the company are:

 A Fresh Approach to the Customer Experience

 Develop a direct link to the customer
 Standardize sales delivery processes used by Asian Paints
 Institute an online ordering and accounting system for providers
 Implement a real-time reporting system for employees and business partner

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 OBJECTIVE 2: SWOT ANALYSIS OF ASIAN PAINTS
Asian paints was founded in 1942 and is engaged in the business of manufacturing,
selling and distribution of paints, coatings etc. Asian Paints clocked a turnover of Rs
15,852 crores in 2016 and are the largest paint company in India. The company has
operations in over 19 countries with services available in over 65 countries. Asian Paints
is a holding company of Berger Internationals. Indian Paints Industry is estimated to be at
Rs 406 bn of which organised sector accounts for about 65 % i.e. Rs 264 bn.

Strengths in the SWOT Analysis of Asian paints :

a) Strong Growth: Asian Paints has shown a healthy growth of around 8 – 12 % in

the past 5 financial years. This has made sure that the company maintains the top
spot as far as market share is concerned. It is double the size of any other paint
company in India.

b) Strong Global Presence: Asian Paints has a wide footprint on a globe operating
in 19 countries and have 26 manufacturing units around the world. Asian Paints
serves in over 65 countries and is the fourth largest paints company in Asia.

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c) A wide range of Products: The Product portfolio of Asian Paints allows them to
cater to different segments and industries, they are present in the Industrial
coatings, Decorative paints, Ancillaries, Asian Paints Royale etc. This allows
them to penetrate different segments of business and sections of society which
helps them maintain market share.

d) Brand Value: Asian Paints was ranked 20th in the Top 20 best brands in
Interbrand report by Economic Times. It also featured in the Top 20 World’s
Most Innovative companies.

e) Strong Supply Chain Management: Asian Paints has is a

superior technology driven company which has focused on integrating Supply
Chain Management (SCM) and Enterprise Resource Planning (ERP) solution
from SAP.

f) Marketing campaigns – Asian paints has always had good marketing campaigns.
It has continued its association with Saif Ali khan over the years and had also
roped in Sohaali khan for a beautiful campaign. From time to time it has roped in
other personalities for ads but Saif Ali khan has been a constant. Recently,
Deepikapadukone has been chosen as their brand ambassador for Asian paints
Royale play. Their brand mascot – GATTU is very famous too and is one of the
most popular brand mascots of India.

g) Asian paints royale play – The Royale play was an amazing and breakthrough
concept launched in the market by Asian paints wherein painters from the
company themselves will paint your house using unique designs and colours.
These painters were specially trained and consumers relied on them because they
came from the house of Asian paints. DeepikaPadukone is the brand Ambassador
for the sub brand.

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Weaknesses in the SWOT Analysis of Asian paints :

a) Low Market Share in Industrial and Auto Paint: Asian paints has a low
market share in the industrial paint (about 15 percent) and auto sector (about 20
percent) when compared to Kansai Nerolac and AkzoNobel.

b) Slow International Business: Except for Bangladesh, Nepal and UAE, Asian
Paints have been performing below par in other overseas countries.

Opportunities in the SWOT Analysis of Asian paints :

a) Growth in Industrial Sector: It has a chance to acquire market share in the

Industrial as well as automobile sector as well considering the current market
situations.

b) Growing Indian Economy: With growth in Indian Economy and developing

infrastructure, Asian Paints has a chance to increase revenue base and venture into
smaller cities, to increase sales.

c) Emerging Nations: Asian Paints’ vision is to become one of the top five
decorative coatings companies in the world. This can be achieved by focusing on
the emerging economies of the world.

d) Adapting to consumer psyche – Change is always constant. So although Asian

paints is leading the market due to Royale play, there are other factors which it
can bring in to dazzle its customers and therefore keep the majority market share.
Off course, easier said then done.

Threats in the SWOT Analysis of Asian paints :

a) The threat of Slowdown: Any Economic slowdown will have a direct negative
impact on the construction industry and consequently paint industry will also get
affected.

b) Unorganised sector: The unorganised sector still has about 35 percent of the
market share and this can prove out to be a deterrent to the growth of the industry.

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 c) The scarcity of Raw materials: The raw materials required in the Paint industry
control the pricing of paint and scarcity can cause a jump in the prices, which can
be a threat for the Paint Industry.

OBJECTIVE 3: MARKETING STRATEGIES OF ASIAN PAINTS

Strategies
Reach to Remotest Corner
Focus on Smaller Towns
Gattu
Small Packs – Meeting Everybody’s need
Close Relationship with Dealers – Business Partnership
1990 – Target by lowering prices (consumers are brand conscious and involved)
Change of Logo – Fresh & Rejuvenated Look
O&M Strategy – Every Home has a story
Vertical Integration
1998 – Shade Card, One Stop Color Machine, Exclusive showroom in Mumbai
2004 – Positioned as Umbrella Brand
2007 – Tie Up with IIT
Horizontal Integration for rubber tyre
Early 200 – Direct Link with Customers
Covers all segments
Discount to attract retailers, Professional Painting Service
Ads create social, psychological and emotional connect with customers

International Market Strategy

a) To enter the high – growth emerging markets

b) Adopt a regional hub approach to international operations
c) Apply the emerging market business model :
d) Introduce new products suited to local needs
e) Introduce new technology, accordingly
f) Focus to improve all areas of Operations, especially supply chain

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Supply Chain

Marketing Mix

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Vision
“See Indian homes painted in variety of colors from a truly Indian
company”
• Asian paints wants to become one of the top 5 decorative coating
companies’ worldwide byLeveraging expertise in the higher growth in
emerging markets.
• Simultaneously, the company intends to build long term value in the
industrial coating businessthrough alliances with established global partners.

Mission
“To provide paints as per market demand, ensuring desired level & quality
ofCustomers (dealer service)”

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OBJECTIVE4: TO KNOW ABOUT FINANCIAL STATEMENTS
AND FINANCIAL ANALYSIS

Meaning Of Financial Statements

Financial statements refer to such statements which contains financial information about
an enterprise. They report profitability and the financial position of the business at the
end of accounting period. The team financial statement includes at least two statements
which the accountant prepares at the end of an accounting period. The two statements
are: -

● The Balance Sheet

● Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus the financial statement provides a summarized view of financial
positions and operations of a firm.

Meaning Of Financial Analysis

The term financial analysis is also known as ‘analysis and interpretation of financial
statements’ refers to the process of determining financial strength and weakness of the
firm by establishing strategic relationship between the items of the Balance Sheet, Profit
and Loss account and other operative data.
The first task of financial analysis is to select the information relevant to the decision
under consideration to the total information contained in the financial statement. The
second step is to arrange the information in a way to highlight significant relationship.

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The final step is interpretation and drawing of inference and conclusions. Financial
statement is the process of selection, relation and evaluation.

Features of Financial Analysis

o To present a complex data contained in the financial statement in simple and

understandable form.

o To classify the items contained in the financial statement in convenient and

rational groups.

o To make comparison between various groups to draw various conclusions.

Purpose of Analysis of financial statements

▪ To know the earning capacity or profitability.

▪ To know the solvency.

▪ To know the financial strengths.

▪ To know the capability of payment of interest & dividends.

▪ To make comparative study with other firms.

▪ To know the trend of business.

▪ To know the efficiency of mgt.

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Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of

financial statements:-

❖ The analyst should acquaint himself with principles and postulated of accounting.
He should know the plans and policies of the management so that he may be able
to find out whether these plans are properly executed or not.

❖ The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is to
be studied then balance sheet analysis will be necessary.

❖ The financial data be given in statement should be recognized and rearranged. It

will involve the grouping similar data under same heads. Breaking down of
individual components of statement according to nature. The data is reduced to a
standard form.

❖ A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.

❖ The information is interpreted in a simple and understandable way. The

significance and utility of financial data is explained for help in decision making.

❖ The conclusions drawn from interpretation are presented to the management in

the form of reports.

❖ Types Of Financial Analysis

There are different ways of analysis the financial statements:

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1. On The Basis Of Process Of Analysis

a) Horizontal Analysis: This is used when the financial statement of a number of

years are to be analysed. Such analysis indicates the trends and the increase or
decrease in various items not only in absolute figures but also in percentage form.
This analysis indicates the strengths and weaknesses of the firm. This analysis is
also called as dynamic analysis because it also shows the trend of the business.

b) Vertical Analysis :This is used when financial statements of a particular year or

on a particular date are analyzed. For this type of analysis we generally use
common size statements and the ratio analysis. It involves a study of quantitative
relationship among various items of balance sheet and profit and loss account.
This type of analysis is static analysis because this is based on the financial results
of one year. Vertical analysis is useful when we have to compare the performance
of different departments of the same company.

Among these two types of analysis, horizontal analysis is more useful because it
brings out more clearly the trends of working of a firm. This gives us more concrete
bases for future planning.

2. On The Basis Of Information Available

a) Internal Analysis: This analysis is based on the information available to the

business firm only .Hence internal analysis is made by the management. Internal
analysis is more reliable and helpful for financial decisions.

b) External Analysis :This analysis is made on the basis of published

statements,reports and informations. This analysis is made by external parties
such as creditors,investors,banks,financial analysis etc. external analysis is less

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 reliable in comparison to internal analysis because of limited and often
incomplete information.

3. On The Basis Of Number Of Firms

a) Inter-Firm Analysis :When financial analysis of two or more companies or firms

are analyzed and compared over a number of accounting period, it is called inter-
firm analysis.

b) Intra -Firm Analysis :intra-firm analysis is concerned with the analysis of

financial performance of different units or departments or segments of the same
enterprise or company. Similarly when financial statements of two or more years of the
same firm are analyzed and compared it is also called as intra-firm analysis.

4. On The Basis Of Objectives

a) Accounting Analysis: Accounting analysis is analysis of past financial performance

and involves examining how generally accepted accounting principles and conventions
have been applied in arriving at the values of assets, liabilities, revenues and expenses.

b) Prospective Analysis :Prospective analysis involves developing forecasted financial

statements keeping in view the changes that are likely to shape and affect the business
given the assumptions about these changes and the limitation of the forecasting technique
used. This is quite complicated analysis.

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Methods/Tools Of Financial Analysis

A number of methods can be used for the purpose of analysis of financial statements.
These are also termed as techniques or tools of financial analysis. Out of these, and
enterprise can choose those techniques which are suitable to its requirements. The
principal techniques of financial analysis are:-

a. Comparative financial statements

b. Common-size statements
c. Trend analysis
d. Ratio analysis
e. Funds flow analysis
f. Cash flow analysis
g. Break even point analysis

a. Comparative Financial Statements:

When financial statements figures for two or mote years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’. Such statements not
only show the absolute figures of various years but also provide for columns to indicate
to increase ort decrease in these figures from one year to another. In addition, these
statements may also show the change from one year to another on percentage form. Such
cooperative statements are of great value in forming the opinion regarding the progress of
the enterprise.

Objectives purpose or significance of comparative financial statements

1.To simplify data

2.To make inter period/inter-firm comparison
3.To indicate the trends

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4.To enable forecasting
5.To indicate the strengths and weaknesses of the firm
6.To compare the performance
7.To analyse expenses
8.To analyse profits

Tools for comparison of financial statements

Comparative financial statement is a tool of financial analysis that depicts change in each
item of the financial statement in both absolute amount and percentage term, taking the
item in preceding accounting period as base.

Comparison and analysis of financial statements may be carried out using the following
tools:

1.Comparative Balance Sheet : The comparative balance sheet shows increase and
decrease in absolute terms as well as percentages ,in various assets ,liabilities and capital.
A comparative analysis of balance sheets of three periods provides information regarding
progress of the business firm.
The main purpose of comparative balance sheet is to measure the short- term and long-
term solvency position of the business.

2. Comparative Income Statement: Comparative income statement is prepared by

taking figures of two or more than two accounting periods,to enable the analyst to have
definite knowledge about the progress of the business.Compartative income statements
facilitate the horizontal analysis since each accounting variable is analysed horizontally.

b.Common- Size Statements:

Common size statements are such statements in which the items of financial statements
are covered into percentage of common base. In common-size income statement, by

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assuming net sales as 100(i.e %)and other individual items are converted as percentage of
this. Similarly, in common –size balance sheet ,total assets are assumed to be 100 (i.e %)
and individual assets are expressed as percentage.

Objectives of common size statements

1. Presenting the change in various items in relation to total assets or total liabilities
or net sales.
2. Establishing a relationship.
3. Providing a common base for comparison.

Types of common size statements

1. Common-Size Balance Sheet :A common –size balance sheet is a statement in

which total of assets or liabilities is assumed to be equal to 100 and all the figures
are expressed as percentage of the total. That is why it is known as percentage
balance sheet.
Common-size balance sheet facilitate the vertical analysis since each item of the
Balance Sheet is analyzed vertically.

2. Common-Size Income Statement: Common-size income statement is a

statement in which the figures of net sales is assumed to be equal to 100 and all
other figures of “profit and loss A/c” are expressed as percentage of net sales.this
statement facilitate the vertical analysiss since each accounting variable is
analyzed vertically. One can draw conclusion, regarding the behaviour of
expenses over period of time by examining these percentages.

C. Trend Analysis:

Trend percentage are very useful is making comparative study of the financial statements
for a number of years. These indicate the direction of movement over a long tine and help

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an analyst of financial statements to form an opinion as to whether favorable or
unfavorable tendencies have developed. This helps in future forecasts of various items.
For calculating trend percentages any year may be taken as the ‘base year’. Each item of
bease year is assumed to be equal to 100 and on that basis the percentage of item of each
year calculated.

d. Ratio Analysis:

Meaning :
Absolute figures expressed in financial statements by themselves are meaningfulness.
These figures often do not convey much meaning unless expressed in relation to other
figures. Thus, it can be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.

TYPES OF RATIOS

1. Proportion or Pure Ratio or Simple ratio.

2. Rate or so many Times.
3. Percentage
4. Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS

1. Helpful in analysis of financial statements.

2. Simplification of accounting data.
3. Helpful in comparative study.
4. Helpful in locating the weak spots of the business.
5. Helpful in forecasting
6. Estimate about the trend of the business
7. Fixation of ideal standards

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 8. Effective control
9. Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1. False accounting data gives false ratios
2. Comparisons not possible of different firms adopt different
3. accounting policies.
4. Ratio analysis becomes less effective due to price level
5. change
6. Ratios may be misleading in the absence of absolute data.
7. Limited use of a single Ratio.
8. Window-Dressing
9. Lack of proper standards.
10. Ratio alone are not adequate for proper conclusions
11. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied,
various ratios have been classifieds as below:

Liquidity Ratios :These are the ratios which measure the short-term solvency or
financial position of a firm. These ratios are calculated to comment upon the short-term
paying capacity of a concern or the firm’s ability to meet its current obligations.
Long –Term Solvency and Leverage Ratios :Long-term solvency ratios convey a
firm’s ability to meet the interest cost and repayment schedules of its long-term
obligation e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.

Activity Ratios: Activity ratios are calculated to measure the efficiency with which the
resource of a firm have been employed. These ratios are also called turnover ratios
because they indicate the speed with which assets are being turned over into sales e.g.
debtors turnover ratio.

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Profitablity Ratios: These ratios measure the results of business operations or overall
performance and effective of the firm e.g. gross profit ratio, operating ratio or capital
employed. Generally, two types of profitability ratios are calculated.
(a) In relation to Sales, and
(b)In relation in Investment

FUNCTIONAL CLASSIFICATION IN VIEW OF

FINANCIAL MANAGEMENT OR CLASSIFICATION ACCORDING TO TESTS

Liquidity Ratios Long-term Activity Ratios Profitability Ratios

Solvency and
Leverage Ratios
-Current Ratio Financial Operating Inventory Turnover In Relation to Sales.
-Liquid Ratio Composite Ratio. Gross Profit Ratio.
(Acid) Test or -Debt. Equity Debtors Turnover Operating Ratio.
Quick Ratio. Ratio Ratio Operating Profit
-Absolute liquid or -Debt to Total Fixed Assets Ratio.
-Cash Ratio. Capital Ratio Turnover Ratio Net Profit Ratio.
-Debtors -Interest Total Asset Expenses Ratio
Turnover Ratio Coverage Ratio Turnover Ratio In relation to
-Creditors Turnover -Capital Gearing Working Capital investments
Ratio Ratio Turnover Ratio. Return on
-Inventory Turnover Payables Turnover Investments.
ratio Ratio Return on capital.
Capital Employed Return on Equity
Turnover Ratio Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

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Page | 46
CASH-FLOW STATEMENT
A cash – flow statement is a statement showing inflows (receipts) and
outflows (payments) of cash during a particular period. In other words, it is a
summary of sources and applications of each during a particular span of
time.

Objectives of Cash Flow Statement :

1. Useful for Short-Term Financial Planning.

2. Useful in Preparing the Cash Budget.
3. Comparison with the Cash Budget.
4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from various Separately.
7. Helpful in Making Dividend Decisions.

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INTERPRETATION
● The cost of inventories recognised as an expense includes ` 26.90 crores (Previous
year - ` 4.28 crores) in respect of write down of inventory to net realisable value.
There has been no reversal of such write down in current and previous years.
● inventories and trade receivables and carries interest rate @ 9.15% p.a. as at 31st
March, 2016 and 1st April, 2015, the rate was 10.25%.
● The company’s liability towards loan is no longer. Earlier it was
● There is good increase of 17.60% in the total assets of the firm which means the
company is expanding faster.
● A slight increase of 17.60% is seen in the total equities and liabilities of Asian
Paints.
● The equity share capital has remained the same in all the three years which is
95.92 crores.
● Revenue from sale of products has increased to 7.81% from last year.
● The Profit After Tax for the current year is ` 1,803.10 crores as against ` 1,622.81
crores in the previous year – a growth of ` 11.1%. The growth in profit is mainly
driven by increase in revenue from operations and softening of input material
prices during the year.
● During the financial year 2016-17, revenue from operations on standalone basis
increased to ` 14,360.43 crores as against ` 13,332.18 crores in the previous year –
a growth of 7.7%.
● Cost of goods sold as a percentage to revenue from operations decreased to 59.8%
as against 60.7% in the previous year.
● Employee cost as a percentage to revenue from operations increased to 5.2% (`
742.83 crores) against 5% (` 666.83 crores) in the previous year..
● The market size of the Indian paints sector has been pegged at Rs 170 bn in value
terms and is very fragmented. The per capita consumption of paints in India
stands at 0.5 kg per annum as compared to 1.6 kgs in China and 22 kgs in the
developed economies. India's share in the world paint market is just 0.6%.

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Page | 49
Page | 50
OBJECTIVE 5 : RATIO ANALYSIS OF ASIAN PAINTS

RATIO ANALYSIS
CURRENT RATIO:
An indication of a company's ability to meet short-term debt obligations; the
higher the ratio, the more liquid the company is. Current ratio is equal to current assets
divided by current liabilities. If the current assets of a company are more than twice the
current liabilities, then that company is generally considered to have good short-term
financial strength. If current liabilities exceed current assets, then the company may have
problems meeting its short-term obligations.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

= 6965.68/3884.87 = 1.79:1

Interpretation:
An ideal solvency ratio is 2:1. The ratio of 2 is considered as a safe margin of solvency
dueto the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the
Creditors will be able to get their payments in full.
But here the current ratio is less than 2:1 which shows that Asian paints does not have
enough current assets to pay off its liabilities.Therefore the it should keep more current
assets so that it can maintain a satisfactory safety margin.

LIQUID RATIO:
Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to
assets which are quickly convertible into cash. Current Assets other stock and prepaid
expensesare considered as quick assets.
Quick Ratio = Total Quick Assets
Total Current Liabilities
Quick Assets = Total Current Assets – Inventory
= 1.11:1

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 ❖ Interpretation:
A quick ratio of 1:1 is considered favorable because for every rupee of current liability,
there is at more than one rupee of liquid assets. A higher value of ratio is considered
favorable. Here this ratio is more than 1 in all the years which indicates that the company
has a lot of quick assets to pay off its liabilities.

DIVIDEND PER SHARE :

It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.
This shows the per share dividend given to equity shareholders. It is very helpful for
potential investors to know the dividend paying capacity of the company. It affects the
market value of the company.

Dividend Per Share = Dividend Paid To Equity Shareholders

No. Of Equity Shares
= 796.32/ 95,91,97,790 = 8.30%

❖ Interpretation:
The Dividend Per Share is decreasing year after year except a little increase in 2017.
Having a growing DPS can be a sign that the company's management believes that the
growth can be sustained.

CASH RATIO:
•It is a measure of short-term liquidity of the company.
• It is more conservative (errors on side of caution) compared to other liquidity measures
(current ratio, quick ratio) because it only includes cash and equivalents in the numerator
•Result generally well under 1.0x

CASH RATIO: CASH EQUIVALENTS+CASH

CURRENT LIABILITIES
=1667.52/3884.87 = 42.92

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 CHAPTER-4

Findings, Suggestions and Conclusions

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 FINDINGS
As a part of my study, survey on “marketing and financial analysis of Asian Paints”.
Important findings which I came to know are summarized below ;-

 The First and foremost observation that has been made from the study
is that “Asian Paints” is the leader in the industry of paints. It has a
very high brand equity in the market.

 The Profit After Tax for the current year is ` 1,803.10 crores as against ` 1,622.81
crores in the previous year – a growth of ` 11.1%. The growth in profit is mainly
driven by increase in revenue from operations and softening of input material
prices during the year.
 On a consolidated basis, the group achieved revenue of Rs17,084.76 crores as
against Rs15,841.69 crores – a growth of 7.8%.

 During the financial year 2016-17, revenue from operations on standalone basis
increased to ` 14,360.43 crores as against ` 13,332.18 crores in the previous year –
a growth of 7.7%.
 The Company proposes to transfer ` 500 crores to the General Reserve. An
amount of ` 2,573.14 crores is proposed to be retained in the Retained Earnings.
 As at 31st March, 2017, the Company has only one class of equity shares and has
low debt. Consequent to such capital structure, there are no externally imposed
capital requirements. In order to maintain or achieve an optimal capital structure,
the Company allocates its capital for distribution as dividend or re-investment into
business based on its long term financial plans.

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 SUGGESTIONS

1. Sales promotion committee should be formed to formulate and implement

new market strategies to compete with competitors and to extend the
market share.

2. Company sales representatives must maintain relations with construction

companies as well as with painting contractors with the help of the
dealers.

3. Company should conduct meetings, at least to make the customers to

know about the latest development in the paint industry and their products.

4. Companies should even concentrate on Exterior Paints as its market share

is very low.

5. Advertisement should be increased to update the image of Asian Paints in

the changing environment.

6. Company must look after, there is a close relationship between sales

representatives and dealers with the customers.

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 CONCLUSION:

On the domestic front, the financial year 2017-18 has started on a positive note with the
progress seen on implementation of the GST regime from the second quarter of the year.
The long-term it is expected to give a strong fillip to the economic activity with
rationalisation of the marketplace and also boost competitiveness of the industry,
however, given the wide scale of implementation, it is likely to cause some disruptions in
the initial period and the Company will have to face this hurdle as it adapts to this new
landscape it is bound to have disruptions in the short term.
The impact of demonetisation felt over the last two quarters of the previous financial year
is expected to lead to a squeeze on the margins of the industry.
The Indian rupee stayed relatively stable this year, trading in a range of 66-67 to USD for
most part of the year before seeing a sharp appreciation during the close of the financial
year. It was also encouraging to see the Government move ahead on clearing the
legislative hurdles for the implementation of the Goods and Services Tax (GST), touted
as the biggest tax reform for the country. All indications now suggest that GST should get
implemented in the second quarter of the financial year and although uncertainties remain
around the design as well as readiness of the entire economy to implement this structural
change, is poised to provide a fillip to India’s economic growth as it will create a single
national market and enhance the efficiency of inter-state movement of goods and services
apart from moving a large part of the informal sector within the formal set-up of the
economy.

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 BIBLIOGRAPHY
Websites
1. https://www.marketing91.com/marketing-strategy-asian-
paints/
2. https://www.asianpaints.com/more/investors/annual-
reports.html
3. https://www.asianpaints.com/
4. https://en.wikipedia.org/wiki/Asian_Paints_Ltd
5. http://www.codelooker.com/dfilec/0550Session1234/Asian
Paints.pdf

Books

1. TN chhabra –marketing management

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