1. Analysis of financial statement of asianpaints ltd
AS-1 DISCLOSURE OF ACCOUNTING POLICIES
Disclosure of accounting policies means enclosure all the changes of accounting
policies in current year of your books of account. The financial statements have been
prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India
and presented under the historical cost convention on accrual basis of accounting to
comply with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.
The preparation of financial statements in conformity with Generally Accepted
Accounting Principles (GAAP) in India requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosures of contingent liabilities on the date of financial statements and reported
amounts of income and expenses during the period. ,
AS-2 ACCOUNTING FOR INVENTORIES
In determining cost of raw materials income and expenses during the period. ,
packing materials, stock-in-trade, stores, spares, components and consumables,
asianpaints maintained the weighted average method to find out inventories and
maintain it properly.
AS-3 ACCOUNTING FOR CASH FLOW
In asianpaints operating activities are recorded in indirect basis ,the cash inflow from the
operating activities are 826.37 which is more than 7% of previous year inflow i.e
762.46. in asianpaints more money spend in investing activities i.e 512.13 the previous
year investment is (440.40). cash flow from financing activities in asianpaints is (326.21)
that means money spend in providing dividend .total cash flow of asianpaints including
all three activities is 624.31 ,the cash inflow from foreign exchange is 10.35 and cash
in hand in current year is 626.23.
AS- 4 CONTINGENCIES AND EVENT OCCURRING AFTER BALANCE SHEET DATE
This accounting standard are not applied in this company
AS-5 NET PROFIT OR LOSS FOR THE PERIOD,PRIOR PERIOD ITEM AND
CHANGES IN ACCOUNTING POLICIES

2. AS-6 ACCOUNTING FOR DEPRECIATION
Depreciation on all fixed assets is provided under Straight Line Method. The rates of
depreciation prescribed in Schedule XIV to the Companies Act
Information Technology Assets : 4 years
Scientific Research equipment : 8 years
Furniture and Fixtures : 8 years
Office equipment and Vehicles : 5 years
Godowns, Office and Roads situated within factory premises : 30 years
For Phthalic Anhydride and Pentaerythritol plants, depreciation is provided on all eligible
plant and machinery at rates applicable for continuous process plants and for other
plant and equipment depreciation is provided on triple shift basis.
AS-7 ACCOUNTING FOR CONSTRACTION CONTRACT
It is a painting color production company ,so as-7 is not applicable .
AS-8 ACCOUNTING FOR R&D(withdraw from accounting standard)
AS-9 REVENUE RECOGNITION
Revenue from sale of goods is recognized to transferring all risk and reward ownership
to buyer .revenue is including with sales taxes/vat and net rate of return. Revenue of
service is recognized on rendering service to customer. Process income is finding out
through the accrual basis. Interest income is recognized on the time proportion basis.
Dividend income is recognized when right to receive payment established.
AS-10 ACCOUNTING FOR FIXED ASSET
Cost of fixed asset include taxes , duties ,fright and other direct expenses related with
fixed asset
AS-11 EFFECT OF CHANGES IN FOREX EXCHANGE RATE
Transactions in foreign currencies entered into by the Company are accounted at the
exchange rates prevailing on the date of the transaction. This year total foreign gain of
asian paints is 42.25
AS-12 ACCOUNTING FOR GOVT GRANTS

3. There is no grant provided by govt. to asianpaints ltd .
AS-13 ACCOUNTING FOR INVESTMENT
Current investments are carried at lower of cost and fair value. The comparison of cost
and fair value is done separately in respect of each category of investments.On disposal
of an investment, the difference between its carrying amount and net disposal proceeds
is charged or credited to the Statement of Profit and Loss. Profit or loss on sale of
investments is determined on a first-in-first-out (FIFO) basis.
AS-14 ACCOUNTING FOR AMALGAMETION
Asian paints are not acquired any company .so this as-14 is not applicable.
AS-15 EMPLOYEESE BENIFITES
employees benefit of this company is divided in to two main part a) short term
employees benefits and b) post employees benefits. Short term benefits means benefits
provided to employees with twelve month. Post employees benefits means benefits
provided to employees in life time basis..
asianpaint provided to his/her employees the following -------
1)Provident Fund scheme
2)Gratuity scheme
3)Pension scheme
4)Post Retirement Medical benefit plan
Total employees benefits of asianpaints is 341.63 ,it is more than the previous year
expenses i.e 300.45
AS-16 BORROWING COST
Borrowing cost includes Interest, amortization of ancillary costs incurred in connection
with the arrangement of borrowings and exchange differences arising from foreign
currency borrowings to the extent they are regarded as an adjustment to the interest
cost. Borrowing costs, if any, directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to get ready for
its intended use or sale are capitalized. There are two type of borrowing cost –long term
and short term. Long term borrowing of asian paints of this year is 52.64crores and
short term borrowing cost is 110.51crores which is more than the previous year ,but
long term borrowing cost is decrease from 57.71 to 52.64 crores.
AS-17 SEGMENT REPORTING

4. AS-18 RELATED PATIES DISCLOSES
The following paties are involved in asianpaints ltd.
Asian Paints (Nepal) Private Limited
Asian Paints (International) Limited Mauritius
Asian Paints Industrial Coatings Limited India
Multifacet Infrastructure (India) Limited India
Maxbhumi Developers Limited India
AP Coatings Limited India
AS-19 ACCOUNTING FOR LEASEES
Lease rentals on assets taken on operating lease are recognized as expense in the
Statement of Profit and Loss on an accrual basis over the lease term .this year lease
expenses of asian paints is 0.20 crores.The Company has provided tinting systems to
its dealers on an operating lease basis. The lease period varies between four and ten
years. Lease rentals are payable monthly by the dealers. A refundable security deposit
is collected at the time of signing the agreement.
AS-20 EARNING PER SHARE
The Basic and Diluted Earnings Per Share (“EPS”) is computed by dividing the net profit
after tax for the year by weighted average number of equity shares outstanding during
the year . so basic eps of this year rs 99.92 and diluted eps is rs 80.81 on face value of
10 rupees
AS-21 CONSOLIDATED BALANCESHEET
AS-22 ACCOUNTING FOR TAXES AND INCOME
Current year p.year$
Current Tax 402.76 324.99
Deferred Tax 5 4.16 26.41

5. (Excess) tax provision for earlier years (2.38) (4.22)
Total Tax Expenses 404.54 347.18
AS-23 ACCOUNTING FOR INVESTMENT IN ASSOCIATES CFS
The following are the associate company which holding by the asian paints ……
Asian Paints (SouthPacific) Limited of Fiji Islands, 53.15% share hold by asianpaints,
previous year is (51.30%) 1st April, 2011 – 31st March, 2012
Asian Paints (Tonga)Limited Kingdom ofTonga ,100.00% share hold by asianpaints,
(100.00%) 1st April, 2011 – 31st March, 2012
Asian Paints (S.I.) Limited Solomon Islands 75.00% share hold by asianpaints same as
previous year, (75.00%) 1st April, 2011 – 31st March, 2012
Asian Paints (Vanuatu) Limited Republic of Vanuatu 60.00% share hold by same as
previous year asianpaints(60.00%) 1st April, 2011 – 31st March, 2012
Asian Paints (Lanka) Limited Sri Lanka 99.18% share hold by asianpaints decrease by
.68% (98.86%) 1st April, 2011 – 31st March, 2012
Asian Paints (Bangladesh) Limited Bangladesh 89.78% share hold by asianpaints,
(89.78%) 1st April, 2011 – 31st March, 2012
Asian Paints (MiddleEast) LLC Sultanate of Oman 49.00% share hold by asianpaints,
(49.00%) 1st April, 2011 – 31st March, 2012
SCIB Chemicals S.A.E. Egypt 60.00% share hold by asianpaints same as previous
year, (60.00%) 1st April, 2011 – 31st March, 2012
Samoa Paints Limited Samoa 80.00% share hold by asianpaints same as previous
year, 80.00% 1st April, 2011 – 31st March, 2012
AS-24 DISCOUNTINUING OPERATIONS
AS-25 ACCOUNTING FOR INTRIM FINANCIAL REPORTING

6. AS-26 INTANGIBLE ASSET
AS-27 ACCOUNTING FOR INTEREST IN JOINT VENTURE
Financial Reporting of Interests in Joint Venture, the disclosures relating to the two Joint
Ventures viz., Asian PPG Industries Limited and Asian Ppg Ltd.(bothhereinafterreferred
to as JV) are as follows: The proportion of interest of the Company in the JV is by way
of equal equity participation with PPG Industries Securities Inc., U.S.A.
AS-28 IMPAIRMENT OF ASSET
AS-29 PROVISION,CONTINIGENT LIABILITIES AND ASSET