PROJECT REPORT ON RATIO ANALYSIS

FOR

“KANSAI NEROLAC PAINTS LTD.”

BY

Mr. Sayeed Rahmatullah

Roll No: 0069
Section II

Submitted to
Dr. Paromita Dutta
Paper Code: MBR1020T

Xavier Business School

St. Xavier’s University, Kolkata.
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 CONTENTS

1. INTRODUCTION ............................................................................................................................................................................... 2

2. NEED OF THE STUDY .................................................................................................................................................................... 3

3. OBJECTIVES ....................................................................................................................................................................................... 4

4. COMPANY PROFILE………………………………………………………………………………………………………………………….5

5. RESEARCH METHODOLOGY.........................................................................................................................................................8

6. RATIO ANALYSIS................................................................................................................................................................................9

7.DATA ANALYSIS AND INTERPRETATION…………………………………………………………………………………………15

7.1. LIQUIDITY RATIO.......................................................................................................................................................15

7.1.1. CURRENT RATIO ..................................................................................................................................15

7.1.2. QUICK RATIO .........................................................................................................................................16

7.2 PROFITABILITY RATIO.............................................................................................................................................17

7.2.1. NET PROFIT RATIO .............................................................................................................................17

7.2.2. RETURN ON NET WORTH.................................................................................................................18

7.3 TURNOVER RATIO .....................................................................................................................................................19

7.3.1. INVENTORY TURNOVER RATIO.....................................................................................................19

7.3.2. FIXED ASSET TURNOVER RATIO ..................................................................................................20

7.4. SOLVENCY RATIO…………………………………………………………….……………………………………………...21

7.4.1. DEBIT-EQUITY RATIO……………………………………….……………………………………………..21

7.4.2. INTEREST COVERAGE RATIO…………………………….………………………………………....…..22

7.5. MARKET STANDING ................................................................................................................................................23

7.5.1. EPS...............................................................................................................................................................23

7.5.2. P/E RATIO................................................................................................................................................24

CONCLUSION .........................................................................................................................................................................................25

REFERENCES..........................................................................................................................................................................................26

ANNEXURE-I….……………………………………………………………………………………………………………………………….….28

ANNEXURE -II..….……………………………………………………………………………………………………………………………….29

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1. INTRODUCTION

INDIAN PAINT INDUSTRY

The success story of the 100 years old Indian paint industry began when Shalimar
Paints set up a factory in Calcutta the way back in 1902. In the beginning the industry was
mainly comprised of number of small producers and very few major players. Immediately
after the Second World War, though the Indian Paint Industry had seen numerous local
entrepreneurs, the foreign companies
Like Goodlass Walls (now Kansai Nerolac), ICI, British Paints (now Berger Paints), Jenson
& Nicholson and Blundell & Eomite have been dominating the market for many years.

Sector trends and specifics

The Indian paint industry is mainly segmented into two categories – industrial and
decorative paints. While industrial paints are used for protection against corrosion and rust
on steel structures, vehicles, white goods and appliances, decorative paints are used in
protecting valuable assets like buildings. In most developed countries, the ratio of decorative
paints vis-à-vis industrial paints is around 50:50. But, in India the industrial paint segment
accounts for only 30% of the paint market while the decorative paint segment accounts for
70% of paints sold in India.

Demand and Growth

The demand for decorative paints is highly price-sensitive and also cyclical.
Monsoon is a slack season while the peak business period is Diwali festival time, when most
people repaint their houses. The industrial paints segment, on the other hand, is a high
volume-low margin business. The industrial coatings market in India still remains relatively
small in comparison at about 340,000 tons, and this is dominated by structural and
infrastructural applications associated with the protective coatings market.
Threats
The industry is raw-material sensitive. Of the 300 odd raw materials, nearly half of
them are imported petroleum products. Thus, any deficit in global oil reserves affects the
bottom-line of the players. The demand for paints is relatively price-elastic but is linked to
the industrial and economic growth.
Opportunities
Although industry figures expect some modest abatement in growth in the Indian
paint and coatings market, particularly in the short term, the prevailing economic climate of
infrastructure investment and renewal holds the key to most of the growth in the Indian
coatings market.
Other opportunities in India are pegged to the transport sector. Car ownership in
India stands at little more than one percent. However, rising affordability and the launch of
economical cars are expected to propel the market for OEM coatings and refinishes in the

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coming years. Higher demand for marine paints can be expected in the next decade, once
investments in ports and port development have started to reach fruition.
Powder coatings are also a good growth market in India, growing at about ten percent
per annum, which is typical of the mean coatings segment growth in the country. This
segment has been finding new applications in India and represents one area in which the
consciousness of VOCs and the environment has been raised. Indian companies are now
beginning to appreciate the benefits of cleaner technology once initial investment in finishing
in this area has been made.
Market Profile
The organized sector of India’s paint and coatings market holds a whopping 65%
share of the approximately Rs. 13600 crore industry, while the balance is made up of over
2000 unorganized units. There are now twelve major players in the organized sector namely
Asian Paints, Kansai Nerolac, Berger, ICI, Shalimar, and so on. Recent years, the industry
has attracted world leaders like Alzo Nobel, PPG, DuPont and BASF to set up base in India
to offer product ranges such as auto refinishes, powder coatings and industrial coatings.

2. NEED FOR THE STUDY

 The study has great significance and provides benefits to various parties whom

directly or indirectly interact with the company.

 It is beneficial to management of the company by providing crystal clear picture

regarding important aspects like liquidity, leverage, activity and profitability.

 The study is also beneficial to employees and offers motivation by showing how

actively they are contributing for company’s growth.

 The investors who are interested in investing in the company’s shares will also get

benefited by going through the study and can easily take a decision whether to invest

or not to invest in the company’s shares.

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3. OBJECTIVES OF STUDY:

The major objectives of the recent study are to know about financial strengths and weakness

of KANSAI NEROLAC PAINTS LIMITED through FINANCIAL RATIO ANALYSIS.

The main objectives of recent study aimed as:

 To evaluate the performance of the company by using ratios as a yardstick to measure

the efficiency of the company.

 To understand the liquidity, profitability and efficiency positions of the company

during the study period.

 To evaluate and analyze various facts of the financial performance of the company.

To make comparisons between the ratios during different periods.

Secondary Objectives:

 To study the present financial system at KANSAI NEROLAC PAINTS LIMITED.

 To determine the Profitability, Liquidity Ratios.

 To simplifies and summarizes a long array of accounting data and makes them

understandable.

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4. COMPANY PROFILE

KANSAI NEROLAC PAINTS LTD. (KNPL)

Introduction:

Kansai Nerolac Paints Limited (KNPL), erstwhile Goodlass Nerolac Paints Ltd, is the
second largest paint company in India and is the leader in industrial segment. The company
has five strategically located manufacturing units all over India and a strong dealer network
across the country. The company manufactures a diversified range of products ranging from
decorative paints coatings for homes, offices, hospitals and hotels to sophisticated industrial
coatings for most of the industries. The company markets its products under the brand names
Nerolac, Glossolite, Goody, Allscapes, Excel, in decorative.

KNPL is the Indian subsidiary of Japan based Kansai Paint Co. Ltd. KNPL has 5 factories
located at Jainpur (UP), Lote (Maharashtra), Bawal (Haryana), Hosur (Tamil Nadu) and
Sayakha (Gujarat). The company has a state-of-the-art R&D facility in Mumbai. KNPL also
has operations in Nepal and Sri Lanka through Joint Ventures with Kansai Nepal and Capital
Holdings Maharaja Group respectively.

History:
The company was established in 1920 as Gahagan Paints and Varnish Co. Ltd. at
Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead
Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire share capital of
Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born.

Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In
1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it
went public in the same year and established itself as Goodlass Nerolac Paints Ltd. It came
into the fold of Tata Forbes Group in 1976, as its foreign holdings were acquired by Forbes
Gokak. It turned into Joint Venture company in 1986 as the foreign collaborator Japan based
Kansai Paints picking 36% of equity capital of the company. With the acquisition of entire
stake of Forbes Gokak and its associates by Kansai Paints it became the subsidiary of the
latter in 1999.Technical Assistance Agreements of the company with renowned players in

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paint industry at international level puts the company in a strong position to offer products
which meets stringent international specifications. It started in 1993 when the company tied-
up with Kansai Paints of Japan (for manufacture of Sophisticated architectural Coatings) and
Nihon Tokushu Torya Co. Ltd also of Japan (for body seal and under seal coatings). And the
latest being the technical assistance agreement with Dupont Performance Coatings GmbH &
Co. KG, Germany for know-how of manufacture of Anodic Electro-deposition Coatings
System during the year 2000-01.
During 2005-2006, the company made an investment in a Malaysian Company, a joint
venture company between the company and Kansai Paint Co Ltd., Japan (Kansai), where the
company will hold 55% stake and 45% Stake by Kansai.
In 2006, the name of the company was changed from Goodlass Nerolac Paints Ltd. (GNPL)
to Kansai Nerolac Paints Ltd.

Vision of KNPL:
“KNPL its unique vision to leverage global technology for servicing customer with superior
coating system built on innovative and superior product and world class solution to
strengthen its leadership in industrial coating and propel for leadership in architectural
coating all to the delight of its stake holder”.

Management:
Being the second largest paint company in India, it spread over the country with employee
strength of around 2000. An efficient management provides the conducive work atmosphere
to develop and grow.
Customers of Kansai Nerolac Paints ltd.:
I. Bajaj Auto Ltd.
II. Maruti Suzuki Ltd.
III. Godrej Ltd.
IV. Mahindra & Mahindra
V. Samsung
VI. Ashok Leyland
VII. Toyota Kirloskar Motors Ltd.
VIII Aditya Birla Group
.
IX. Hero MotoCorp.
About Kansai Nerolac Paint Ltd. (Lote Plant):

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Nerolac Lote plant was commissioned on 29th April 1998 which is situated in MIDC Lote,
Parshuram Industrial area. The site is surrounded by other manufacturing units which is 1km
away from National Highway NH-17. Nerolac Lote plant is spread over 10 acres (40400 sq.
m.). KLP started this plant mainly to maintain the requirement of the growing automobile
sector in Pune.
In terms of production capacity Lote plant is second largest plant of KNPL and basically
focuses on industrial paint. Recently Industrial Lote Plant achieved 1616.8 KL production-
which is the highest ever production at Lote.
To meet overall requirement of water base paint Kansai Nerolac has started a new plant of
decorative paints which is totally advanced to meet the required quantity water base paint.
The new decorative water base plant started in the end of October 2008.

Award and Recognition to KNPL:

 Most Innovative Product of the Year Award-Nerolac Impressions HD, 2015-16
 Award for achieving the highest growth in refinish business, 2015-16
 Bawal plant – Gold, Safety, 2014-15
 Outstanding Contribution to Supply Chain Management, 2013-14
 Innovative Product/service Award-Nerolac Impression Ecoclean ultra Luxury
Emulsion, 2010-11

5. RESEARCH METHODOLOGY
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Research methodology is a way to systematically solve the research problem. 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.

Data Collection:

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

collected from the audited reports of the company.

Sources of Data:

The sources of data are from the annual reports of the company for the year 2016-17,

2017-18 and 2018-19.

Methods of Data Analysis:

The data collected were edited, classified and tabulated for analysis. The analytical

tools used in this study.

Analytical Tools Applied:

The study employs the following analytical tools:

 Ratio Analysis.

6. RATIO ANALYSIS

8
Financial Analysis:

Financial analysis is the process of identifying the financial strengths and weaknesses

of the firm and establishing relationship between the items of the balance sheet and profit &

loss account.

Financial ratio analysis is the calculation and comparison of ratios, which are derived from

the information in a company’s financial statements. The level and historical trends of these

ratios can be used to make inferences about a company’s financial condition, its operations

and attractiveness as an investment. The information in the statements is used by

 Trade creditors, to identify the firm’s ability to meet their claims i.e. liquidity position

of the company.

 Investors, to know about the present and future profitability of the company and its

financial structure.

 Management, in every aspect of the financial analysis. It is the responsibility of the

management to maintain sound financial condition in the company.

Ratio Analysis:

The term “Ratio” refers to the numerical and quantitative relationship between two items

or variables. This relationship can be exposed as

 Percentages

 Fractions

 Proportion of numbers

Ratio analysis is defined as the systematic use of the ratio to interpret the financial

statements. So that the strengths and weaknesses of a firm, as well as its historical

9
performance and current financial condition can be determined. Ratio reflects a quantitative

relationship helps to form a quantitative judgment.

Ratios Are Useful for Several Parties Such As:

1) Investors, both present as well as potential investors.

2) Financial analyst.

3) Mutual funds.

4) Stock broker and stock exchange authorities.

5) Government.

6) Tax department.

7) Competitors.

8) Research analysts and students.

9) Company’s management.

10) Creditors and Suppliers

11) Lending Institutions – Banks and Financial Institutions

12) Financial Manager

Classification of Ratios:

A) Liquidity Ratios

It is also known as liquidity ratios. it includes the following

1) Measures ability of a company to meet its current obligations.

2) Indicates short term financial stability of a company.

3) Indicates present cash solvency and ability to remain solvent in times of adversities.

To measure the liquidity of a firm the following ratios can be calculated

 Current ratio

 Quick (or) Acid-test (or) Liquid ratio

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(a) Current Ratio:

Current ratio is useful to find out solvency of the company. High current ratio indicates

that company will be able to pay its debt maturity within a year. Low current ratio

indicates that company will not be able to meet its short-term debts.

Minimum standard current ratio is 2:1.

Current Assets

Current Ratio =

Current Liabilities

(b) Quick Ratio:

Quick ratio is also known as acid test ratio. It indicates immediate ability of

a company to pay off its current obligations. And also shows the solvency and financial

soundness of the business. Greater the ratio stronger the financial position of the

company.

The standard quick ratio should be 1:1

Current Asset - (Stock) - (Prepaid Expenses)

Quick Ratio =

Current Liabilities – Bank Overdraft

B) Profitability Ratios:

The primary objectives of business undertaking are to earn profits. Because profit is the

engine, that drives the business enterprise.

11
It measures the overall efficiency of the business. It indicates whether utilization of

business assets and funds are done efficiently and best way or not, so as to generate

adequate profits or returns.

1) Net Profit Ratio:

It shows the overall efficiency of the business. Higher the ratio indicates higher efficiency

of business and better utilization of total resources. In addition, it indicates efficiency of

financing operations as well as tax management.

Net profit after tax

Net Profit Ratio: X 100

Sales

2) Return on Net Worth:

It measures the productivity of shareholders’ funds. Higher the ratio indicates better

utilization of shareholders’ funds or higher productivity of owner’s funds. It helps to

investor to compare the earning capacity of company with that of other companies.

Net Profit after Tax

Return on Net Worth: = X 100

Equity Shareholder Fund

C) Turnover Ratio:

It measures how efficiently the assets are employed. These ratios are expressed in

number of times the assets are used during the period.

1) Inventory Turnover Ratio:

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 It indicates number of times the replacement of inventory during the given period

usually a year. Higher the ratio more efficient is the management of inventory. But

higher inventory turnover ratio is not always good if it is lower level of inventory

because it invites problem of frequency stock outs and loss of sales and customer or

goodwill.

Cost of Goods Sold

Inventory Turnover Ratio =

Average Stock in Hand

2) Fixed Asset Turnover Ratio:

It indicates efficiency in the utilization of fixed assets like plant and machinery by

management.

Net Sales

Fixed Assets Turnover Ratio =

Fixed Assets

D) Solvency Ratio:

It indicates financial structure of the organization that is proportion of debts as compare to

owner’s fund.

1) Total Debt/Equity Ratio:

It explains the relationship between long term debts borrowed from outsiders with

owner’s contribution. Lower the ratio better is the solvency of the business

and safer is the creditor so far as his repayment.

Long Term Debt

Total Debt to Equity =

Total Capital Employed

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 4) Interest Coverage Ratio:

This indicates earning capacity of the business to pay its interest burden. Higher

the ratio business can easily pay the interest.

Earnings before Interest and Tax

Interest Coverage Ratio:

Interest

E) Market Standing Ratio:

These ratios for a particular company are relevant for an investor for making an

investment decision as to whether he should invest in the share of the company.

1) Earnings per Share:

This ratio indicates weather over a given period there have been change in the wealth

per share holder. Other the ratio increases the possibility for the higher dividends and

increase in the market price of the shares.

Earnings after Tax – Preference Dividend

Earnings per Share:

No. Of Shares Paid Up

2) Price Earnings Ratio:

It indicates relationship between market price of the share and the current earnings per

share. It helps to determine the future price of the share.

Market Price per Share

Price Earnings Ratio:

Earning Per Equity Share

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7. DATA ANALYSIS AND INTERPRETATION

7.1. Liquidity Ratios:

To measure the liquidity of a firm the following ratios can be calculate the following

ratios,

7.1.1 CURRENT RATIO:

Current Asset
Current Ratio:
Current Liabilities

Table 1.a:

Year Ratio
31-3-17 3.39
31-3-18 2.97
31-3-19 2.80

Current Ratio(X)
4
3.39
3.5
2.97
3 2.8

2.5
Ratio
2

1.5

0.5

0
2016-17 2017-18 2018-19

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ANALYSIS AND INTERPRETATION:

The current ratio of the firm measures the short-term solvency. It indicates the rupees

of current asset available for each rupee of current liabilities.

The above chart shows that decline trend from the F.Y. 2017 to F.Y. 2019. In the F.Y. 2016-

17 it shows 3.39:1 which was higher than the standard ratio i.e. 2:1. There was continuous

decline in the current ratio which is good sign for the company, as the management is able to

use the assets efficiently.

7.1.2) QUICK RATIO(X):

Current Asset - (Stock) - (Prepaid Expenses)

Quick Ratio:
Current Liabilities – Bank Overdraft

Table 1.b:

Year Ratio
31-3-17 2.40:1
31-3-18 2.02:1
31-3-19 1.44:1

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ANALYSIS AND INTERPRETATION:

The above chart indicates the decline trend from the F.Y. 2017 to F.Y. 2019. The

overall trend shows declining which is not a positive sign for KNPL as company’s liquidity is

reducing.

7.2) Profitability Ratio:

7.2.1) Net Profit Ratio (%):

Net Profit
Net Profit Ratio: X 100
Sales

Table:2. a:

Year Ratio (%)

31-3-17 12.65
31-3-18 11.25
31-3-19 9.03

ANALYSIS AND INTERPRETATION:

17
 The above chart indicates the Net Profit Ratio in 2016-17 was 12.65 % which

decreases to 11.25% in FY 2017-18. Further it had fallen to 9.03% in FY 2018-19. That

means company suffers the losses due to decrease in the sales of the company and increase in

operational cost..

7.2.2 Return on Net Worth:

Net Profit after Tax

Return on net worth: X 100
Equity shareholder fund

Table 2. b:
Year Ratio
31-3-17 18.03 %
31-3-18 16.52 %
31-3-19 13.64 %

ANALYSIS AND INTERPRETATION:

This ratio indicates how well the firm has used the resources of owner. The earning of
a satisfactory result is the most desirable objective of the business. This ratio is important to
present as well as prospective shareholders and also of great concern to management.

18
The above chart shows that the ratio was almost constant in first two years. Further it
declined to 13.64% this is due to increase in the reserve and surplus of the company.
Higher the ratio indicates better utilization of recourses but in KNPL it shows decreasing
trend which is not good.

7.3) TURNOVER RATIOS:

7.3.1) Inventory turnover ratio:

Net Sales
Inventory turnover ratio:
Closing Stock

Table 3.a:

Year Ratio(X)
31-3-17 5.78 times
31-3-18 5.69 times
31-3-19 4.91 times

ANALYSIS AND INTERPRETATION:

The above chart shows that the stock gets converted into cash was 5.78 times,
5.69 times and 4.91 times in the FY 2017 to 2019 respectively.
If we compared the figures of sales and inventory of first two years, the level of inventory is
almost same, but in the FY 2018-19 the sales were increased with high cost of inventory
which implies the management is unsuccessful to reduce the cost involved for management
of inventory.
7.3.2) Fixed Asset Turnover Ratio(X):

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 Net sales
Fixed asset turnover ratio:
Fixed assets

Table 3. b:
(Rupees in Cr.)
Year Net sales Fixed assets Ratio
31-3-17 4097.29 1088.72 3.76 times
31-3-18 4658.99 1349.67 3.45 times
31-3-19 5235.50 1630.60 3.21 times

ANALYSIS AND INTERPRETATION:

It indicates in-efficiency in the utilization of fixed assets like plant and

machinery by management. From the above chart the fixed asset turnover ratio of KNPL

slowly decreases over period of time. From this we can say that a company has not been

successful to manage and utilized its assets. Also, a company has been less effective in using

the investment in fixed assts to generate revenue.

7.4. Solvency Ratio:

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 7.4.1) Debt Equity Ratio:

Total Debit (Long Term)

Debt equity ratio:
Shareholder Fund

Table 4.a:

Year Ratio
31-3-17 0.01
31-3-18 0.01
31-3-19 0.00

ANALYSIS AND INTERPRETATION:

This ratio is useful to judge long term financial solvency of a firm. This ratio
reflects the relative claim of creditor and shareholder against the assets of the firm.
From the above chart the debt equity ratio of the KNPL is almost nil. The low debt equity
ratio indicates the firm had no claims from outsiders as compared to those of owner. A debt
ratio of zero indicates that the company does not finance increased operations through
borrowing at all, which limits the total return that can be realized.

7.4.2) Interest Coverage Ratio:

Earnings before interest and tax

Interest coverage ratio:
Interest

Table 4.b:
Year Ratio
31-3-17 0
31-3-18 0
31-3-19 0

ANALYSIS AND INTERPRETATION:

21
 From the above chart the trend of the ratio is zero. From this, it indicates that

KNPL has no interest burden (as there is no debt) which is good sign for both i.e. their

creditors and shareholders.

7.5) Market Standing Ratio:

These ratios for a particular company are relevant for an investor for making an

investment decision as to whether he should invest in the share of the company.

7.5.1) Earnings per Share:

Earning after tax – preference dividend

Earnings per share:
No. of shares paid up

Table 5.a:
Year Ratio
31-3-17 9.39
31-3-18 9.58
31-3-19 8.67

ANALYSIS AND INTERPRETATION:

From the above chart the EARNING PER SHARE of the company was high
in FY 2017-18 i.e. Rs.9.58. This means that as compare to FY 2016-17 there has been
increase in wealth per shareholder but in FY 2018-19 there has been a dip to Rs 8.67, so a

22
decrease in wealth per shareholder which makes the company share not so attractive to the
investors.

7.5.2) Price Earnings Ratio:

Market Price per Share

Price Earnings Ratio:

Earning Per Equity Share

Table 5.b:
Year Ratio
31-3-17 39.90
31-3-18 52.90
31-3-19 50.80

ANALYSIS AND INTERPRETATION:

The higher the ratio, the greater the amount that an investor is willing to pay for Rs1 of
current earnings. So, a stock with a high P/E is generally expected to increase in value. A
stock with a low P/E may already be doing well, or it may simply be undervalued. In FY
2016-17 the company had a P/E ratio of 39.9 but it increases to 52.9 in FY 2017-18 which
indicates that the company is not doing good financially and its EPS has decreased and the
market price will fall in the coming months.

23
CONCLUSION:

Finance is the life blood of every business. Without effective financial management a
company cannot in this competitive world. A Prudent financial Manager has to measure the
working capital policy followed by the company.

The company’s overall position is at a stable position. Through the expenditure is increasing
and proper utilization of assets hasn’t happened the profits have dipped a little. The company
is headed for a rough patch and the management has to come up with better methods to
contain the situation and plan ahead accordingly. It is better for the firm to diversify the funds
to different sectors in the present market scenario.

Despite the slowdown in its growth, it has determined to grab numerous opportunities that are
facing Indian Paint Industry.

As mentioned earlier, other opportunities in India are pegged to the transport sector. Car
ownership in India stands at little more than one percent. However, rising affordability and
the launch of economical cars, custom paint jobs are expected to propel the market for OEM
coatings and refinishes in the coming years.

24
Higher demand for marine paints can be expected in the next decade, once investments in
ports and port development have started to reach fruition. As India is hopeful of competing
with other established shipbuilding nations, the multinationals are likely to find plentiful
opportunity in India, given the compliance requirements imposed by effects of international
legislation on marine paints.

So, from this we can conclude that there is a better opportunity for investors to invest in this
company even though KNPL is going through a rough patch as the company has forayed into
the marine paints business and the auto sector industry which will help the company to make
more profits in the long run.

References:
https://www.nerolac.com/awards-achievements.html#scroll
https://www.nerolac.com/about-us.html#scroll
https://en.wikipedia.org/wiki/Kansai_Nerolac_Paints
http://www.capitalmarket.com/Company-Information/Information/About-Company/Kansai-
Nerolac-Paints-Ltd/200
https://www.business-standard.com/company/kansai-nerolac-200/information/company-
history
https://www.moneycontrol.com/financials/kansainerolacpaints/balance-sheetVI/KNP#KNP
https://www.indiainfoline.com/company/kansai-nerolac-paints-ltd-key-ratios/financials/200
https://www.moneycontrol.com/financials/kansainerolacpaints/profit-lossVI/knp#knp
https://www.moneycontrol.com/financials/kansai%20nerolac/ratiosVI/KNP

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Annexure I:
Balance Sheet Of Kansai Nerolac Paints for the FY 2017,2018,2019

26
Annexure I:
Continuation of balance-sheet

27
Annexure II:

28
Profit and Loss Statement.

29