4/15/2010

[TYPE THE
COMPANY NAME]

BALANCE SHEET ANALYSIS OF MARUTI SUZUKI

Prepared By: Submitted to: Dr. Himani Joshi
Dipa Shah Krishna Rajput Nikita Saghvi Mitesh Shah Bharat Maheshvari Keyur Savalia

ACKNOWLEDGEMENT
An acknowledgement is the expression of one¶s thanks giving to the people who have extended their help in every possible way. Help is a voluntary fulfillment of duty, which, all the people mentioned below have performed it to their maximum possible, in a way giving us & our research the utmost important.

At the onset, we wish to express our gratitude to Dr. Himani Joshi, Academic Coordinator, and CA Ms. Neha Saxena, faculty at Stevens Business School for their keen interest, constant support & help in completing this report successfully.

We would also like to thanks to the authors, journals and websites for providing us the related information to our project¶s subject.

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TABLE OF CONTENTS
Sr. No. 1 2 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4 5 5.1 5.2 5.3 6 6.1 Particular Acknowledgement Executive Summary Company profile Introduction Key Data Vision Mission Market Scenario Sales Analysis Market Share Financial Highlight Meaning of Analysis and Objective of Study Importance of Cash Profit Theory Meaning and Importance Of Ratio Utility Of Ratio Analysis Classification Of Ratio Profitability Ratio 6.1.1 Gross Profit Ratio 6.1.2 Net Profit Ratio 6.1.3 Expenses Ratio 6.1.4 Operating Ratio 6.1.5 Return on Investment 6.1.6 Return on Share Holders Fund 6.1.7 Return on Equity Share Capital 6.1.8 Return on Equity Share holders Fund 6.1.9 Earning per Share Page No. 02 05 06 06 07 07 07 08 09 10 11 15 15 16 16 18 18 18 20 22 23 24 25 26 27 28

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1.1 8.5 7.1.3 7.1 9.2 10 11 12 13 14 Activity/Turnover Ratio Overall turnover Ratio Fixed Assets Turnover Ratio Debtor Turnover Ratio Creditor Ratio Creditor Turnover Ratio Stock Turnover Ratio Liquidity Ratio Current Ratio Liquid Ratio Quick / Acid Test Ratio Leverage Ratio Proprietary Ratio Debt Equity Ratio Accounting Policy 2009 Notes To Account Auditor s Report Conclusion Appendix 1 Appendix 2 Appendix 3 Appendix 4 29 30 31 32 33 33 34 35 36 37 38 39 39 40 41 42 42 43 44 48 50 55 56 57 58 60 4 .3 9 9.1 7.1.6.2 8.12 Dividend Yield Ratio 6.4 7.10 Dividend Per Share 6.1.6 8 8.13 Interest coverage Ratio 7 7.11 Price Earning Ratio 6.2 7.

we have tried to explain how one can find out financial result with the help of ratio analysis and some more in portent graphs with the help of Ratio Analysis. profit analysis. It is also useful for budgeting control and decisionmaking. We have done in depth analysis of ratios. Financial analysis is essential for any business entity. investors. We have also mentioned profit trends. revenue analysis. and analysis of company¶s liquidity are discussed here. debtors. 5 . equity share holders. The growth trend of Maruti Suzuki is also mentioned here. debenture holders of Maruti Suzuki are also described. It is the tool to communicate with creditors. We can easily understand the profitability of the business.Executive summary In this report. Detailed analysis of creditors. government also and analysis to make an evaluation of a certain aspect of a firm¶s performances. Here in this project report we have discussed about various components of balance sheet and their significance. debtors. In a nut shell this report gives the complete financial analysis of Maruti Suzuki for five years. Ratio analysis helps interested parties like share holders. efficiency of business. creditors. dividend trends. useful in inter comparison. suppliers and all those who are directly or indirectly associated with an organization.

Maruti is the highest volume car manufacturer in Asia. producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. which it exercised in 1987. New Delhi ± 110001 6 . Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. Suzuki further increased its equity to 50% turning Maruti into a nongovernment organization managed on the lines of Japanese management practices. Kasturba Ganghi Marg. It was established with the objectives of . having produced over 5 million vehicles by May 2005.01. Jeevan Prakash Building.700 Crore in new facility to expand capacity by 2.COMPANY PROFILE  INTRODUCTION First Indian automobile company to join the million clubs Invests Rs 1. and has made profits every year since inception till 2000. by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Maruti created history by going into production in a record 13 months. Five years later. to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. outside Japan and Korea.  REGISTERED AND CORPORATE OFFICE: 11th Floor. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983.modernizing the Indian automobile industry.5 billion.5 lakh units Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament. 25. high depreciation on new model launches resulted in a book loss. In 2000-01. although Maruti generated operating profits on an income of Rs 92. in 1992. Maruti is one of the most successful automobile joint ventures. There was an option in the agreement to raise Suzuki¶s equity to 40%.

A pride of India´  MISSION To provide maximum value for money to their customers through continuous improvement of products and services 7 . Major Industry: 6.060 Ordinary 156. Shares Outstanding: 13. Share Type: 14. Creating Customer Delight and Shareholder¶s Wealth. Employees: 9.618.369 March 288.129.000.440  VISION The leader in the India Automobile Industry.638. Fiscal Yr Ends: 12. Market Cap: 11. 206.159 Indian Rupees 399.028. Closely Held Shares: INDIA 532500 MARUTI BOM Automotive Diversified Automotive Mfrs.910. NSE: 4. Exchanges: 5. BSE: 3. Country: 2.000 7. Currency: 10. 2009 Sales: (Year Ending Jan 2010) 8. Sub Industry: 7. KEY DATA 1.

bolstered by 2.314 towns and cities. The service network covers 1. 8 . The company's change in strategy and emphasis on developing effective marketing communications was their highlights. MARKET SCENERIO (2008 -09) Maruti has a network of 681 sales outlets across 454 cities all over India.767 authorized service outlets.

over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983. when it became the first automobile company in India to produce one million (10 lakh) cars in a year. the nation's number one car manufacturer joined a select club of global automobile makers. And finally in 2009-10. of which 53. has been the leader of the Indian car market for over two decades.024 were exported. a subsidiary of Suzuki Motor Corporation of Japan. 9 . SALES ANALYSIS The company vouches for customer satisfaction. During 2007-08. For its sincere efforts it has been rated (by customers) first in customer satisfaction among all car makers in India for ten years in a row in annual survey.842 cars. Maruti Suzuki India Limited. Maruti Suzuki sold 764. In all.

 MARKET SHARE 10 .

26 per cent compared to January-March 2008.453. and marks a growth of 14.433. a growth of 30.538.8 Crore.MARUTI SUZUKI FINANCIALS FOR 2008-09 Total Income up 14.28 per cent over 2007-08. Net profit during January-March 2009 was Rs 243.1 Crore vis-à-vis Rs 297. (Fiscal 2007-08: 100 per cent). Dividend The Board of Directors recommended a dividend of 70 per cent for 2008-09.218.3 Crore during January-March 2009. During the year.7 Crore during January-March 2008.7 Crore. commodity prices went up sharply and remained high for most part of the year. the company's exports in 2009-10 are expected to be higher and cover its imports.6 per cent over 2007-08. a fall of about 22 per cent over the previous year. The company's EBDITA for the year stood at Rs 2. Premium compacts and sedan segment drive top line growth Fiscal 2008-09 The company's Total Income (Net of Excise) (Income from Operations plus Other Income) for the financial year 2008-09 climbed to Rs 21. Forex fluctuations were also adverse and impacted the bottom-line significantly. Net Profit during the year stood at Rs 1. In recent months. With regard to foreign currency exposure.28 per cent. 11 .4 Crore. The growth in Total Income (Net of Excise) included higher realizations. While there was a 17 per cent growth in unit sales during the quarter. commodity prices have eased. This is the highest Total Income (Net of Excise) ever in the company's history. the adverse foreign exchange movements during the year. down 29. impacted the bottom-line in Q4 as well. largely contributed by the company's popular hatch-back Swift and premium sedan Swift Dzire (Diesel and Petrol variants). Quarter 4 The company registered Total Income (Net of Excise) (Income from Operations plus Other Income) of Rs 6.

167 vehicles.000 engineers in R&D by 2010.8 2006 12015. despite the challenging market situation. The annual sales in 2008-09 is the highest ever by the company in its 25 year history.88 In the fiscal 2008-09 Maruti Suzuki sold a total of 792. up by 32. 12 . During the fiscal.000 units of A-star exported to Europe including United Kingdom. was led by A-star.4 769. The 2008-09 export numbers.8 2003 7180. During the year.57 59.1 146. Netherlands. These include: ‡ Focus on R&D: Manpower strength to 730 engineers from 460 in end March 2008. Maruti Suzuki's Alto continued to be the preferred vehicle for the great Indian middle class crossing the 1 million-mark in cumulative sales in domestic market.1 1218.1 853. France.1 1675. Denmark and Switzerland.8 1304. Company plans 1. Maruti Suzuki Swift crossed the 3 lakh-sales mark cumulative domestic sales since launch and became the quickest vehicle model to do so.9 2004 9104.023 units in 2008-09. The export tally includes around 19.8 1562 1189. ‡ Launching new models: A-star launched.1 282.Highlights of 2008-09 FINANCIAL HIGHLIGHT: FINANCIAL HIGHLIGHTS Particulars Net Sales (In x10M Rs) Profit Before Tax (In x10M Rs) Reported Net Profit (In x10M Rs) Earnings Per Share-Unit Curr ( In Rs) 2009 20530.56 4.9 1750 2005 10923. Introduced Maruti 800 Duo . Germany. During the fiscal. Over these 25 years the company has sold over 7 million (70 lakh) cars in the domestic market. over half a million cars made by Maruti Suzuki have been exported world-over.4 41.03 53. The previous highest annual sales were 764.6 2503 2007 14696.25 18. ‡ New technology engine: Brand new facility for K-series engine launched on schedule. Italy.842 units in 2007-08. Additionally.1 per cent over sales of 53. the highest ever by the company.024 recorded in 2007-08. The company's sales included exports of 70.an alternate fuel option that runs on LPG and petrol.3 2279.65 29. the fuel efficient compact car launched in Europe during the year as Suzuki Alto.7 1730. Fiscal 2008-09 marked Maruti Suzuki's Silver Jubilee year in India.8 2008 17891.6 542.29 40. the company continued its focus on long term initiatives.

23 lakh units in 2008-09 ‡ National Road Safety Mission launched .‡ Annual capacity to manufacture expanded from 800.000 to one million units (Gurgaon plus Manesar plants).000 people in safe driving in three years.government employees and rural customers . 13 . the company. ‡ Reached out to new segments of customers . used for A-star shipment. media houses and research agencies. Accolades During the year.through innovative programs. 2010 and to recommend dividend if any. The network of Maruti Driving Schools further expanded and crossed 50 schools. Maruti Suzuki India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 26. : From 265 outlets (in 166 cities) last year to 315 outlets (181 cities) ‡ Increased Pre-owned car sales from 1. on equity shares of the Company for the financial year 2009-10.628 service outlets (1220 cities) last year to 2. inter alia. ‡ Network expansion: o Sales o Service o True Value : From 600 sales outlets (in 393 cities) last year to 681 outlets (in 454 cities) : From 2.a nation-wide Corporate Social Responsibility (CSR) initiative to train 500. ‡ Dedicated export port facilities for cars at Mundra completed. These include: ‡ A star as the "Car of the year" ‡ A star as the "Best small car of the year" ‡ K10B Engine as the "Automotive technology of the year" ‡ Maruti Suzuki as the "Manufacturer of the year" The company was rated No.01 lakh units in 2007-08 to 1. 1 for a record 9th consecutive year in the JD Power Customer Satisfaction Index Study. its products and services received many awards and accolades instituted by independent expert groups.767 (in 1314 cities). ‡ Export of A star (as Suzuki Alto) to Europe commenced as per schedule. 2010. to consider and approve the audited financial results for the year ended on March 31.

The objective is such that company¶s profitability. So it is very important to study.3 2382. The difference between inflows and outflows is either net inflow or net outflow. fees. Outflow is the resulting from payment to creditors for goods and services. commission etc. The Accounting standard (A53) classifies cash flows as under: 1) Cash from operating activities 2) Cash from investing activities 3) Cash from financing activities The operating activities include receipts from sale of goods or Rendering of services receipts from royalty.2 2279.2 2503 1669.7 1304.1 129. sources of cash which are at the disposable at the firm and outflows of the fire that is the use of the firm. wages salaries etc. A cash outflow statement deals with the cash fund flow.4 1750 1197.8 3071. liquidity and capacity by such analysis we can interpret the position of the company.71 2007 2588.8 2551.82 2003 656.9 860. power.1 1264.72 IMPORTANCE OF CASH PROFIT THEORY: MEANING Cash flow means inflows that is. rent.7 769.8 1072. The main objective behind the study is to get precisely. It also helps us to study the present finance scenario.07 2005 1797. Profit Trend for 7 years: PROFIT COMPARISION (IN x10M Rs) Particulars Operating Profit (EBDIT) Gross Profit (EBDT) Profit Before Tax (EBT) Adjusted Net Profit (EAT) 2009 2433.63 2008 3130.8 1535.7 1761.2 282. MEANING OF ANALYSIS AND OBJECTIVE OF STUDY : Financial statement namely the statement of the profit & loss account and the balance sheet are indication of two signify-cant factors profitability and financial soundness analysis of statements means such a treatment of the information contained to afford a diagnosis of the profitability and financial statements analysis as the process of methodical classification comparison with other co-rising question and then seeking answer for them. payment for expenses such as lighting. which excludes working capital movements.1 2004 1308. Finance is the very typical aspect in course of management.9 604. Only cash from operating activities is included in this report.8 621.29 2006 2055.8 2035. 14 .3 1675.

To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years. The gross profit ratio. On the basic of this ratio. amortize action of capital expenses etc. net profit ratio and ratio of return on investment give a good idea of the profitability of the business. creditors and even management. The relation between in two related items of financial statements is known ratio. profitability etc. Ratio is a figure showing. watching especially for any unfavorable trends that may be starting. investors get an idea about overall efficiency of managers and bank as well as other creditors draw useful conclusion about repaying capacity of the borrowers. It indicates liquidity and signals for appropriate cash management. If relationships between various related items in these financial statements are established. Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. The cash profit is much less or negative compared to the profit declared in the profit and loss account.  MEANING & IMPORTANCE OF RATIO: The Balance Sheet and the Statement of Income are essential. Adjusting depreciation arrives at the cash profit. 15 . Ratio analysis may provide the allimportant early warning indications that allow you to solve your business problems before your business is destroyed by them. and progress of your business. Apply Ratio Analysis to Financial Statements to analyze the success. but they are only the starting point for successful financial management. Because the ratio analysis provides useful data to the management. failure.  UTILITY OF RATIO ANALYSIS: It is very important to find the ratio of liquidity. and or other items for which cash offers the investing and financing activities. important uses of it are given as below:  PROFITABLITY : Useful information about the trend of profitability is from profitability ratio. The net cash from operations can be calculated through adjustment of non-cash items like depreciation. changes in inventory and receivable and payables. logical relationship between any two items taken from financial statement as prepared and presented annually are of little use for guidance of prospective investors. When the cash profit differs from the profit is shown in the profit and loss account or profit and loss statement. they can provide useful dues to garage accurately the financial health and ability of business to make profit.IMPORTANCE OF CASH PROFIT: The cash profit is an important measure of profitability as well as liquidity.

the ratio of investment.  USEFUL FOR DECISION MAKING : Ratio guide the management in making some of the important decision.  INTER FIRM COMPARION : The absolute ratios of a firm are not of much use.  INDICATE TREND : The ratio of the last 3 to 5 years will indicate the trend in the respective fields. Banks and other leaders will be able to conclude from these ratios whether the firm will be able to pay regularly the interest and loan installments. but its trend shows a deteriorating position. The current ratio. A particular ratio of a company.  EFFCIENCY : The turnover ratios are excellent guide to measure the efficiency of managers. unless they are compared with similar ratios of other firms belonging to the same industry. All such ratio related to sales present a good picture of the success on the business. it will give a fairly good idea about various aspects of financial position. If various ratios are presented these reports. it is not desirable only ratio analysis will provide this information. This is a inter firm compared to other firms comparison. which shows the strength and weakness of the firm as compared to other firms and will indicate corrective measures. acid test ratio will tell whether the firm will be able to meet its current liabilities and when they nature. suppose. 16 . the management may decide to get additional liquid funds. The efficiency of each department a thus be deter minded. Thus. for one year may compare favorably with industry average.  USEFUL FOR BUDGETARY CONTROL : Regular budgetary reports are prepared in a business where the system of budgetary control is in use. Even for capital expenditure decision. the ratio are the most useful I financial statement. the liquidity ratios shows an unsatisfactory position. LIQUIDITY : In fact the use of ratio was made initially to ascertain the Liquidity of business.

6. Classification of ratio
6.1Profitability ratio

[6.1.1] Gross Profit Ratio:
Meaning: It is expresses relationship between Gross Profit earned to net sales. It is a significant indicator of the profitability of business. It expresses in percent. For example, a ratio shows that for a sale of every Rs. 1000 a margin of 250 rupees is available from which operating expenses of business are recovered. The ratio shows whether the mark up obtained on cost of production is sufficient or not. There is no calibration against reasonability of gross profit ratio. However it must be enough to cover its operating expenses. In many industries, there are more or less recognized gross profit ratios and the business should strive to maintain this standard. If this ratio is low, it indicates that the cost of sales is high or that the purchasing is inefficient. Alternatively, it may also mean that due to depression, the selling price is reduced but there are may be no corresponding reduction, the selling price is reduced but there may be no corresponding reduction in cost of sales. In such a case, the management must investigate the causes and try to bring up this ratio.

Implementation: Gross profit is result of the relation between price, sales volume and costs. A change in the gross margin can be brought about by changes in any of these factors. The gross profit ratio can also be used in determining the extent of loss caused by theft, spoilage, damage and so on in the case of those firms which follow the policy of fixed gross profit margin in pricing their product. The gross margin represents the limit beyond which fall in sales price are outside the tolerance limit.

Formula: Gross profit Sales X 100

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FOR GROSS PROFIT RATIO Particulars Gross Profit (EBDT) (In x10M Rs) Net Sales (In x10M Rs) Gross Profit Ratio 2009 2382.3 20530.1 11.603937 2008 3071.2 17891.6 17.165597 2007 2551.2 14696.3 17.359471 2006 1761.7 12015.9 16.939222 10923.8 16.1271 719 2005 2004 1264.7 9104.4 13.891 0856 2003 604.2 7180.1 8.4149 2458

INTERPRETATION: As mentioned above the gross profit ratio indicates the relationship between gross profit and net sales. Here from the table we can judge the financial position of Maruti Suzuki year wise. Here 6 consecutive years from 2004 to 2009 are taken into consideration. The changes in the gross profit ratio in percent are as follows. Here, negative sign indicates that the percent is decreased compare to immediate previous year, while positive sign indicates that the percent is decreased in the gross profit compare to immediate previous year. For consecutive four years the gross profit ratio is positive. It indicates better financial position of the company.

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[6.1.2] Net Profit Ratio:
Meaning: Net profit ratio is valuable for the purpose of ascertaining the over-all profitability of business and shows the efficiency of operating the business. Implementation: The net profit ratio is indicative of management¶s ability to operate the business with sufficient success not only to recover from revenue of the period the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also to leave a margin of reasonable compensation to the owners for providing their capital at risk. The ratio of net profit ratio to sales essentially expresses the cost price effectiveness of the operation. A high net profit margin would ensure adequate return to the owners as well as enable a firm to withstand adverse economic conditions when selling price is declaiming, cost of production raising and a low net profit margin has the opposite implication. It indicates the portion of sales revenue is left to the proprietors after all operating expenses are paid. The higher the ratio, the better will be the profitability. In order to have a better idea of profitability, the gross profit ratio and net profit ratio may be simultaneously considered. If the gross profitability increases over the five years but net profit is declining, it indicates that administrative expenses are slowly rising.

Formula: Net Profit Sales X 100

FOR NET PROFIT RATIO Particulars Net Profit (In x10M Rs) Net Sales (In x10M Rs) Net Profit Ratio 2009 1072.63 20530.1 5.2246701 2008 1669.71 17891.6 9.3323682 2007 1535.29 14696.3 10.446779 2006 1197.07 12015.9 9.9623831 2005 860.1 10923.8 7.87363 372 2004 621.82 9104.4 6.8298 8445 2003 129.72 7180.1 1.8066 6007

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Net profit is the profit that is available to the proprietors of the firm after clearing all outstanding and expenses. Thus. higher the ratio yields higher profit. If the administration department is not sufficient then net profit ratio goes down or the control mechanism is not efficient at all check points then also it affects net profit of the company. Higher the net profit ratio shows better financial position of the company. Due to various reasons this ratio goes down. 20 .Interpretation: Here 6 consecutive years from 2004 to 2009 are taken into consideration. The changes in the net profit ratio in percent are as follows.

03% and it is higher than previous year which shows increase in operating expenses. This operating expense may be due to growth in the organization or it may reflect inefficacy of administrative control on expenses.427000 2005 9671 10923.380 315 INTERPRETATION: This ratio shows relationship between expanses to sales. Above table shows that for the year 2004 ± 05 it was 88.64 % the increase in 2005 ± 06 up to 89.5314 634 2004 8177.1 91.9 88. Implementation: Some accountants calculate expenses ratio in respected of raw ± material consumed. For the year 2008-09 there is 2. gross as well as net.1 93. Above table shows that for the year 2004 ± 05 it was 88. direct wages and factory expenses.43 increases in the net profit ratio which gives signal of better financial position of the company.4 89.274275 2008 15934. Here negative sign shows decrease in operating expenses.8 7180.23% that indicates there is increase in operating expenses for the year 2006 ± 07 it is 92.6 89.8 14696.2 17891.8 88.23% that indicates there is increase in operating expenses for the year 2006 ± 07 it is 92.[6.814 8148 2003 6704. 21 .3 12015. Formula: Expenses Sales X 100 FOR EXPENSES RATIO Particulars Total Expenditure (In x10M Rs) Net Sales (In x10M Rs) Net Profit Ratio 2009 18738.3] Expenses Ratio: Meaning: This ratio shows relationship between expanses to sales.64 % the increase in 2005 ± 06 up to 89.03% and it is higher than previous year which shows increase in operating expenses.802297 2006 10625.1 9104. This operating expense may be due to growth in the organization or it may reflect inefficacy of administrative control on expenses.7 20530. It is closely related to the profit margin.059670 2007 12462. Here negative sign shows decrease in operating expenses.3 84.1.

[6.21 3197.64 10923. dividends and extraordinary losses due to theft of goods. direct wages and factory expenses. Formula: C O G S + Operating expenses Net sales X 100 OPERATION RATIO Particulars Operating Expense COGS Net Sales Operating Ratio 2009 2114.1 27. In the year 2008-09 there is 28% increase in the operating expenses. good destroyed by fire and so on.15 2506.1 27.04 1673.01 14696.4 27. Implementation: Some accountants calculate expenses ratio in respected of raw ± material consumed.6 29. Above table shows that for the year 2004 ± 05 it was 87. gross as well as net.9865 INTERPRETATION: This ratio shows relationship between COGS + operating expanses to sales.89 % and it is lower than previous year which shows increase in operating expenses. This is may be due to inefficient operation management and also there may be some other expenses for sales or promotion may incur during this year.88 1168.54 2160.9 28. 22 .22 2006 900.5 17891.6 20530.0219 2003 840.4 3744.33 % the increase in 2005 ± 06 up to 86.1.8 9104. The term µoperating ratio¶ includes (1) COGS (2) administrative expenses (3) selling expenses and (4) financial expenses but excludes taxes.90 % that indicates there is increase in operating expenses for the year 2006 ± 07 it is 83.3499 2005 2004 801. It is closely related to the profit margin.3708 2007 1244.3423 2008 1510.8 3498.3 30.35 12015.54 786.58 7180.1113 27.4] OPERATING RATIO: Meaning: Operating Ratio is computed by dividing expenses by sales.

In the year 2008. reserves and long term loans such as debentures.216 6407 3098 19.1.49499 73 6853.15 percent in the gross profit of the company.down in company¶s sale. It is an index of profitability of business and is obtained by comparing net profit with capital employed.3289 807 4378. Capital includes share capital.4 36.232 4838 3591.5] Return on investment / Capital employed: Meaning: The profitability ratio can be computed by relating the profits of a firm to its investment. This show slow.2 9344.9 8415. It may be measured by the ratio of income to equality capital. Formula: EBIT Capital employed X 100 FOR RETURN ON INVESTMENT / CAPITAL EMPLOYED Particulars Gross Profit (EBIT) (In x10M Rs) Capital Employed ( Share capital + Reserves and surplus) (In x10M Rs) Return on Investment 2009 2382.7 2004 1264. It is due to recession during that period where an overall sale was affected. it is better for the company.2 35.2 2007 2551.4 2005 1761.9 37.4930497 INTERPRETATION: This ratio shows relationship between E B I T to CAPITAL EMPLOYED. 23 . The ratio is an indicator of the measure of the success of a business from the owners¶ point of view. Implementation: Return on investment indicates the profitability of business and is very much in use among financial analysis.6 37.8 40. Higher the ratio.09 there is decrease of 43.[6.2 2006 2035. The ultimate interest of any business is the rate of return on invested capital.3 2008 3071.7 2003 604.222 6032 5452. It determines whether a certain goal has been achieved or whether an alternative use of capital is justified.502 9051 25.

9 11. Proprietor¶s equity or Proprietors¶ funds include share capital and reserves. as it enables the profitability of a company to be compared with that of other.82 3591.4002 393 2006 1197. This ratio shows downward trend in the ratio in return on shareholders fund for this company.4782 395 2008 1669. 24 .6 21. This ratio shows what amount of dividend is likely to be received on shares. In order to judge the efficiency with which the proprietors¶ funds are employed in business.6] Return on shareholder¶s fund: Meaning: It is carries the relationship of return to the sources of funds yet another step further.70.9 22. the return on shareholders¶ equity measures exclusively the return on the owners¶ funds. It is of great practical importance to the perspective of investors. It also indicates whether the return on proprietor¶s fund is enough in relation to the risk that they undertake.[6. This ratio shows upward trend for that financial year for the company.63 9344.2 17. Formula: Net profit X Share holders fund 100 FOR RETURN ON SHAREHOLDER'S FUND Particulars Net Profit (In x10M Rs) Capital Employed ( Share capital + Reserves and surplus) (In x10M Rs) Return on Investment 2009 1072.84112 46 2007 1535.9541 136 2005 860.315 1036 2003 129.642 3678 2004 621. During the year 2008-09 there is 72.97% decrease in the ROI.90 % that increase in the year 2005 ± 06 up to 23.29 6853.72 3098 4. Implementation: It expresses the profitability of a firm in relation to the funds supplied by the creditors and owners taken to gather.71 8415.4 19.1.1 4378. this ratio is ascertained. For the year 2004 05 it is 21.07 5452.18721 756 INTERPRETATION: The ratio indicates relationship between Net profits to share holders fund therefore higher the returns to shareholders.8 19.

1.81 %.63 0 144. year 2008-09 shows marked improvement that is why it is taken into consideration. Its adequacy can be judge by: (1) comparing it with the past record of the same form.1 0 144. Formula: Net profit after tax  Preference dividend X 100 Equity capital FOR RETURN ON EQUITY SHARE CAPITAL Particulars Net Profit (In x10M Rs) Preference Dividend (In Rs) Share Capital (In x10M Rs) Return on Equity Share Capital (In Rs) 2009 1072. For the financial year 2008-09 there is 85% increase in the ratio in return on shareholders fund.5 11. This ratio shows downward trend in the ratio in return on shareholders fund for this company.12 2003 129.7] Return on Equity share capital: Meaning: It is obtained by dividing net profit after tax deduction of performance dividing by his amount of ordinary share capital plus free reserve.5 22.71 0 144.5 79.07 0 144. For the year 2004 ± 05 it is 19.73 2004 621.46 INTERPRETATION: The ratio indicates relationship between Net profits to share holders fund therefore higher the returns to shareholders.5 55.5 27.5 8. 25 .5 28.29 0 144. Implementation: This is probably the single most important ratio to judge whether the firm has earned a satisfactory return for its equity ± holders or not. Here.[6.03 2006 1197. (2) comparisons with the overall industry average.72 0 144.13 2007 1535.14 2005 860.73 2008 1669.49 % that increase in the year 2005 ± 06 up to 21.82 0 144.

Here in the year 2008-09 there is decrease of 69% compared to previous year in the ROI which shows upward trend in the company.8 2004 621.1 4378.1.71 8415.82 3591.[6. 26 .9 2006 1197.29 6853.6 2005 860. Implementation: This is probably the single most important ratio to judge whether the firm has earned a satisfactory return for its equity ± holders or not.9541 136 0 19.95%.18721 756 INTERPRETATION: For the year 2004 ± 05 it is 19.4002 393 0 21. These ratios shows downward trend in the ratio in return on shareholders fund for this company.63 9344.8411 246 0 22.9 2008 1669.8] Return on Equity share holders fund: Meaning: It is obtained by dividing net profit after tax deduction of performance dividing by his amount of ordinary share capital plus free reserve.72 3098 0 11.07 5452.315 1036 0 4.4 2007 1535. Its adequacy can be judge by: (1) comparing it with the past record of the same form.64 % that increase in the year 2005 ± 06 up to 21.6423 678 0 17. (2) comparisons with the overall industry average.2 2003 129.4782 395 0 19. Formula: Net profit after tax  Preference dividend X 100 Equity share holders¶ funds FOR RETURN ON EQUITY SHARE HOLDERS FUND Particulars Net Profit (In x10M Rs) Capital Employed ( Share capital + Reserves and surplus) (In x10M Rs) Preference Dividend (In Rs) Return on Investment (In Rs) 2009 1072.

82 288910 060 0 21.1.9] Earning per share: Meaning: EPS measures the profit available to the equity shareholders on a per share basis.71 2889100 2889100 60 60 0 37.29 1197. The limitation of EPS is that it does not show how much dividend is actually paid to shareholders and how much profit is retained in business. the amount that they can get on every share head. In the year 2004 ± 05 ratio is 29.7934 185 2007 2006 2005 1535. EPS s a measure of profitability Formula: Profit after tax ± preference dividend X 100 No.8997 865 INTERPRETATION: This ratio indicates the earning per share for shareholders of company. that is.1407 594 0 41.1267 792 0 57.522 9612 2003 129.43 % and its increase on 2006-07 is 53.1 2889100 2889100 2889100 60 60 60 0 53.07 860. Implementation: Earning per share is a widely used ratio.7705 106 2004 621. By comparing EPS of the current year with past years the path of the trend of profitability can be ascertained.77 % and 2005 ± 06 it is 41.4340 02 0 29.[6. 27 .72 2889100 60 0 44.therefore it is good for company as well as shareholders. This ratio shows the profitability of the firm from the owner¶s point of view.14 %. of equity shareholders fund FOR RETURN ON EARNING PER SHARE Particulars Net Profit (In x10M Rs) No. It is essential that EPS of the company should be compared with the other companies and also average of the company before giving final opinion. of Equity Shares Preference Dividend (In Rs) Return on Investment ( In Rs) 2009 2008 1072.63 1669.

of ordinary shares outstanding.1 3.1 3. of shares. 28 . of Equity Shares Total Dividend (In x10M Rs) Dividend per Share ( In Rs) 2009 2008 2889100 2889100 60 60 101. Thus for the current year it is decreased.84%.00155 654 2007 2006 2005 2889100 2889100 2889100 60 60 60 130 4.00062 262 2004 288910 060 43.7 1.50 % in the year 2006 ± 07.49967 024 101. of equity shares FOR DIVIDEND PER SHARE Particulars No.[6.49935 894 144. DPS is the Net distributed profit belonging to the shareholders divided by the No. For the year 2004 ± 05 it is 2 % and 2005 ± 06 is3.3 1.5 5.50 % and increase on 4.47796 861 INTERPRETATION: This ratio indicates the total dividend declared to no. It indicates slow-down in the financial position of the company.49935 894 57. For the year 2007-08 is 96% increased compared to previous year while for the year 2008-09 it is decreased to 26. Formula: Total dividend declared No. Like the EPS. Implementation: The DPS would be a better indicator than EPS as the former shows what exactly is received by the owners. the DPS is also should not be taken at its face value as the increase DPS may not be a reliable measure of profitability as the equality base may have increase due to increase relation without any change in the number of outstanding shares.1.4987 3632 2003 2889100 60 42.10] Dividend per share: Meaning: DPS is the dividend paid to shareholders on a per share basis. In the other words.8 2.

58% and 2005 ± 06 it is 21. It is actually the reciprocal of the latter. the PIE ratio measures investors¶ expectations and the market appraisal of the earnings. 29 . Formula: Market value per share Earning per share FOR PRICE EARNING RATIO Particulars Market Value of Share (In Rs) Earning Per Share (In Rs) Price Earning Ration 2009 1559. Therefore it is good for company as well as shareholders.1106 557 INTERPRETATION: This ratio indicates the earning per share for shareholders of company. In the year 2004 ± 05 ratio is 17.05 53.56 24.8130 381 2005 636.35 40.5 29.1.3 4.25 21. Thus ratio is computed by dividing the market price of the shares by the EPS.95% and its increase on 29.7606 838 2004 461.5186 433 2008 520.57 37. only normally sustainable earning associated with the assets are taken into account.25 18. Implementation: The price earning ratio reflects the price currently being paid by the market for each Rupee of currently reported EPS.88 77.81077 418 2007 990. In other words.1 59.[6.03 8.65 41. Therefore.851 8319 2003 376.11] Price earning ratio: Meaning: It is closely related to the earning yield leanings price ratio.29 18.65 22.5785 326 2006 927.55%.

00062 262 0.65 3.0022436 8 2008 520.1 5. For the year 2007-08 the ratio is decreased by 109.0039 2763 INTERPRETATION: This ratio indicates the earning per share for shareholders of company.5 2.25 1.00454 489 2006 927. the yield is expressed in terms of the market value per share.001555 65 0.3 1. 30 .49967 024 0.003773 5 2005 636.4779 6861 0.51%. So for current situation is good for company as well as shareholders.499358 94 0.1. In the year 2004 ± 05 ratio is 17.00314 316 2004 461. Implementation: The dividend yield ratio is calculated by dividing the cash dividends per share by the market value per share.35 3. While the EPS and DPS are based on the book value per share.9% and for 2008-09 it is increased by 76.4987 3632 0.[6.05 4. Formula: Dividend per share Market value share FOR DIVIDEND YIELD RATIO Particulars Market Value of Share (In Rs) Dividend Per Share (In Rs) Dividend Yield Ratio 2009 1559.009616 53 2007 990.12] Dividend yield ratio: Meaning: Dividend yield ratio is closely related to the EPS and DPS.58% and 2005 ± 06 it is 21. The earnings yield may be defined as the ratio of earnings per share to the market value per ordinary share.4993589 4 0.0032 4929 2003 376.95%.

9 52.1 43.85.53.7 12.7 36 49.53020 13 2007 2588.93 and 2005 ± 06 it is 100. Formula: EBITD Interest FOR INTEREST COVERING RATIO Particulars Operating Profit (EBDIT) (In x10M Rs) Interest (In x10M Rs) Interest Covering Ratio 2009 2433.464 8956 INTERPRETATION: This ratio indicates the EBDIT to interest.6 68.774 51 2005 1797. show how many times the interest changes are covered by EBIT out of which they will be paid. For the year 2008-09 the interest covering ratio is 47.71 1764 7 2008 3130.13] Interest coverage ratio: Meaning: It is also known as µtime interest ± earned ratio¶.4 100.1. It is determined by dividing the operating profit or earning before interest and taxes (EBIT) by the fixed interest changes on loans.[6.71 while for the year 2007-08 it is 52.8 and its decrease on 68.6 52. This ratio measures the debt servicing capacity of a firm insofar as fixed interest on long term loan is concerned.It is decreasing for the last 2 financial years due to the fluctuation in for-ex.9361 111 2004 1308.therefore it is good for company as well as shareholders. 31 . 3 51 47.1405 53 2003 656.8 20. Implementation: This ratio uses the concept of net profits before taxes because tax is calculated after paying interest on long term loan. In the year 2004 ± 05 ratio is 49.8 59.8 37.4 30. This ratio as the name suggests.85106 38 2006 2055.

In the year 2004 ± 05 ratio is 2.5351 97149 3098 2.31765 6553 INTERPRETATION: This ratio indicates net sales to capital employed.1 2008 17891.49 and 2005 ± 06 it is 2.9 2.49470 174 3591.12 which shows slow down in the company. Formula: Net sales Capital employed FOR OVERALL TURNOVER RATIO Particulars Net Sales (In x10M Rs) Capital Employed ( Share capital + Reserves and surplus) (In x10M Rs) OVERALL TURNOVER RATIO 2009 20530.4 2.14 in the year 2006 ± 07.4 2003 7180.1] Overall turnover ratio: Meaning: The amount invested in business is invested in all capital employed and sales are affected through them to earn profits so in order to find relation between net sales to capital employed.20 and its decrease on 2.7. Therefore it is bad for company.6 2.1 9344. In the year 2008-09 the ratio is 2.9 2. Activity / Turn over Ratio: [7.19 while in the year 2007-08 the ratio is decreased to 2.9 2005 10923. Implementation: The usefulness of the Du Pont analysis lies in the fact that it presents the overall picture of the performance of a firm as also enables the management to identify the factors which have a bearing on profitability.2 2.203700 987 4378.19693 0946 8415.126054 614 6853.8 2. 32 .6 2007 14696.8 2004 9104.1442244 56 5452.3 2006 12015.

1 7079.6 5716.61 011 2.186 441 2. Therefore.07.9 4073.77 2004 9104.34 4828 2.6 6667 2.2] fixed assets turn over ratio: Meaning: It is based on the relationship between the sales and assets of the firm.77 and 2005 ± 06 it is 2.9 2008 17891.1 2006 12015.4 3746.95 2005 10923. Year 2007-08 and 2006-07 shows almost similar financial position of the company while year 2008-09 shows slight slow down in the financial position of the company 33 . The higher the turnover ratio. In the year 2008-09 there is decrease of 7% in the fixed turnover ratio compare to last year while during year 2007-08 there is very minor change in the ratio.3 4740.1 3554.13 2007 14696.1 in the year 2006 . Implementation: To ascertain efficiency and profitability of the business. it is good for company.[7.8 3943. Formula: Sales Fixed assets FOR FIXED ASSETS TURNOVER RATIO Particulars Net Sales (In x10M Rs) Total Fixed Asset (In x10M Rs) Fixed Asset Turnover Ratio 2009 20530.95 and it increase on 3.7419 35 3. In the year 2004 ± 05 ratio is 2.02 INTERPRETATION: Fixed turn over ratio indicates the turnover of the company in one year.50 495 2.166 134 3. the more efficiency is the management and utilization of the assets while low turnover ratios are indicative of underutilization of available resources.4299 99998 2003 7180. A reference to this was made while working out the overall profitability of a form as reflected in its earning power.

877 2077 11.61 57635 16. As compare to previous year the no.45 2008 17891. Debtors FOR DEBTOR TURN OVER RATIO Particulars Net Sales (In x10M Rs) Sundry Debtors (In x10M Rs) Debtor Turnover Ratio 2009 20530.3] Debtor turn over ratio: Meaning: It is allied and closely related to this is the average collection period. on the basis of the monthly average. of day¶s collection period increase which indicate inefficiency of collection department. debtors.97 2007 14696. Lower the collection period and higher debtor turnover ratio is advisable.9 507.69 in the year 2006 ± 07.2140 144 23. In the year 2008-09 there is 1% decrease in the Debtor¶s turnover ratio compare to previous year and 2007-08 there is 17.3 595.89 INTERPRETATION: Debtor turnover ratio indicates credit sales to avg. Implementation: This figure should be measured.9836 503 29.24 2003 7180. it is good position for company.6 596.[7. How efficiently the amount is collected from the customers from the credit sales.23288 78 24.69 2006 12015.974 867 20.69 2005 10923.69 and its increase on 24.4 560. It suggests that number of times the amount of credit sale is collected during the year. It is the test of the liquidity of the debtors of a firm. 34 . Therefore.91% increase in the debtor¶s turn over ratio. as in the case of average inventory.1 697. In the year 2004 ± 05 ratio is 20.117 1477 29.69 and 2005 ± 06 it is 23.8 527.1 603.69 2004 9104. Formula: Credit sales Avg.

4 30.6316681 INTERPRETATION: Creditor ratio indicates creditor to credit purchase.3863245 2007 909. 35 .4] Creditor ratio: Meaning: It is the no. In the year 2004 ± 05 ratio is 19.e.36% in the creditor ratio compare to previous year.38 times i.3 19.63785021 2006 555. Formula: Creditor + B / P Credit Purchases X 365 FOR CREDITOR RATIO Particulars Creditor (In x10M Rs) Bills Payable (In x10M Rs) Credit Purchase (In x10M Rs) Creditor Ratio 2008 854.57093731 2005 463.1 0 9392.7 0 8621.8 21. decrease of 36.6 0 10836. Thus it indicates slight slow down in the financial condition of the company.57 and its increase on 30.8 22. In the year 2007-08 there is decrease on 22.63 and 2005 ± 06 it is 21.63 in the year 2006 ± 07. Implementation: The generally the longer credit period achieved means the operation of the payment being financial interest feels by supper funds.9 0 13938.[7. of days within which we make payment to our creditors for credit purchases it obtained from creditor ratio.

Implementation: The generally the longer credit period achieved means the operation of the payment being financial interest feels by supper funds. of days within which we make payment to our creditors for credit purchases it obtained from creditor ratio.57093731 2005 365 19.92 and its increase on 11.[7.63785021 2006 365 21.5] creditor turns over ratio: Meaning: It is the no. 36 . In the year 2004 ± 05 ratio is 18.3863245 2007 365 30.59 and 2005 ± 06 it is 16.30. of days in a year Creditor¶s ratio FOR CREDITOR TURN OVER RATIO Particulars NO.91 in the year 2006 ± 07. it is good position for company. Of Days in Year Creditor's Ratio Creditors Turnover Ratio 2008 365 22.6316681 16. Formula: No.5924089 INTERPRETATION: Creditor ratio indicates creditor to credit purchase. It increases in compare to previous financial year thus it indicates good position of the company.30459703 11.92091515 18.91336851 16. During the year 2007-08 ratio is 16. Therefore.

7 9782.7 701.052089 11 2008 21025.243519 78 2003 8981.3 20799.7 881. Therefore. For the year 2008-09 and 2007-08 the ratio are 23.[7. Implementation: This approach has the advantage of being free from bias as it smoothens out the fluctuations in the inventory level at different period. How efficiently stock rate in the year Higher the ratio. obsolete and low quality goods.05 times and 17.7 1761.2 14.9 902.43 times and it¶s increase on 20.80 times in the year 2006 ± 07.4322514 8 2005 13335. Formula: Cost of good sold Average stock FOR STOCK TURN OVER RATIO Particulars Sales Turnover (In x10M Rs) Gross Profit (EBDT) (In x10M Rs) Cost Of Good Sold (COGS) (In x10M Rs) Inventories (In x10M Rs) Stock Turn over Ratio 2009 23182.2 2382.3 487 17. Lower stock turn over ratio indicates accumulation of slow moving. It is a test of efficient inventory management. 37 .893498 72 2006 14753.4 20.3 times respectively.362736 3 2004 11047. which is a danger signal for management. Such firms will be able to trade on a smaller margin of a gross profit.9 2551. To judge whether the ratio of a firm is satisfactory or not.2 14654.4 1264.2 3071.6] Stock Turnover Ratio: Meaning: It is the no. It measures the relationship between COGS and inventory level.2 8377. Higher the turnover ratio. In the year 2004 ± 05 ratio is 17.5 604.3 23. it is good for company. better position of the company as well as efficiency.2 17954 1038 17.36 times and 2005 ± 06 it is 14. It is more in 2008-09 compare to 2007-08. of times the average stock is turned over during the year is known as stock turnover ratio.6 17. It indicates better position of the company.29672 447 2007 17205.1 2035. It is measures how quickly inventory is sold.4 12717.7 439.8 22.7 11574 666. the more profitable business would be.201848 05 INTERPRETATION: Stock turnover ratio indicates cost of goods sold to average stock.

848258 1531.892114 1608 1.8.882050 INTERPRETATION: Current ratio indicates current assets to current liability.6162 2825.89: 1 and its decrease on 1. so that the firm would be assured of being able to pay its current maturing debts as and when it becomes due.096330 3072.7 1.61:1 and for the year 2007-08 it is 1.61:1 closer to ideal one.1] Current Ratio: Meaning: The current ratio is the ratio of total current assets to total current liability. It is calculated by dividing current assets by current liability. It is also known as a working capital ratio.9 2005 2972 2004 2018. Formula: Current Assets Current liability FOR CURRENT RATIO Particulars Total Current Assets (In x10M Rs) Total Current Liabilities (In x10M Rs) Current Ratio 2009 5491.L.8 1. Therefore. In the year 2004 ± 05 ratio is 1.84: 1 and 2005 ± 06 it is 1.6 1.8 3397.433732 1977. It indicates.6 1. Mainly 2: 1 is good. The fact that a firm can rarely count on such an even flow requires that the size of the C.31799 1478. should be sufficiently larger than C. So for the year 2008-09 it is good as ideal is 2:1 and 1. it is good for company.43: 1 in the year 2006 ± 07.1 1.A.1 2008 3097. The standard current ratio must be 2:1.4 1.9 2007 4405 2006 3740. 38 . repaying condition of the company to the current liabilities. It is a measure of short term financial strength of the business and shows whether the business will be able to meet its current liabilities. Liquidity Ratio: [8. as and when they mature. That is a measure of margin of safety to the creditors. Implementation: The current ratio of a firm measures its short term solvency.9 2003 2782. For the year 2008-09 the ratio is 1.61:1. as it is measure of working capital available at a particular time.

43370647 1.1 1531.9 2825.55268497 39 .1 2005 2972 666.35060042 0.0308787 1.44641141 1.9 1038 0 2059.9 881. Implementation: The importance of adequate liquidity in the sense of the ability of a firm to meet short term obligations when they become due for payment can hardly be overstressed.2 0 2859.4 0 3703.2] Liquid Ratio: Meaning: It is obtained by dividing the liquid assets by liquid liabilities.8 1478.1 902. Formula: Liquid assets Liquid liability FOR LIQUIDITY RATIO Particulars Total Current Assets (In x10M Rs) Inventories (In x10M Rs) Prepaid Expenses (In x10M Rs) Quick Asset (In x10M Rs) Total Current Liabilities (In x10M Rs) Bank Over Draff (In x10M Rs) Liquidity Ratio 2009 5491.205442 1.8 3397.6 3072.8 0 1579. In fact liquidity is a prerequisite for the very survival of a firm. It measures ability of a firm to meet its short term obligations and reflect the short term finance strength of a firm.7 1977.9 439.4 1608 2004 2018.6 0 0 0 0 0 0 0 1. If the liquid assets are equal to or more than liquid liabilities.[8.7 2007 4405 701.3 0 4588.6 2008 3097.8 487 0 2295. It liquid ratio is designed to show the amount of cash available to meet immediate payments.72898751 1.4 2006 3740.8 2003 2782.6 0 2305. the condition may be considered as satisfactory.

43: 1 and 2005 ± 06 it is 1.35:1 which shows slight better condition compare to FY 2004-05. How effectively the liability paid off. For the year 2008-09 the ratio is 1.INTERPRETATION: Liquid ratio indicates liquid assets to liquid liability. In the year 2004 ± 05 ratio is 1.44: 1 and its decrease on 1. The standard liquidation must be 1:1. Therefore.21: 1 in the year 2006 ± 07. it is good for company. 40 .

8 1478. Therefore.88205059 INTERPRETATION: Quick acid test ratio is indicates quick assets and liquid liability.09633011 1.89211471 1. it is good for company.1 3397. because payment from debtors would not generally be received immediately when liquid liabilities are to be paid. it is suggested that it would be useful for the management.3] Quick / acid test ratio: Meaning: The measure of absolute liquidity may be obtain by comparing only cash and bank balance as well as readily marketable securities with liquid liabilities. This is exacting standard of liquidity and it is satisfactory if the ratio is 0.9 1531.84: 1 and 2005 ± 06 it is 1.7 2007 4405 3072.3179919 1.[8.9 1977.61617024 1.43373259 1. Formula: Quick assets Liquid liability FOR QUICK ACID TEST RATIO Particulars Quick Assets (In x10M Rs) Current Liability (In x10M Rs) Quick Acid Test Ratio 2009 5491.6 2008 3097.84825871 1.4: 1 in the year 2006 ± 07. In the year 2004 ± 05 ratio is 1.89: 1 and its decrease on 1. Further.6 1. 41 .5:1.8 2003 2782. Quick assets here do not include both stock and debtors.9 2825.1 2005 2972 1608 2004 2018. Implementation: This ratio is the most rigorous and conservative test of a firm¶s liquidity position.4 2006 3740.

Formula: Proprietary fund Net asset FOR PROPEIETARY RATIO Particulars Total Proprietary Funds (In x10M Rs) Total Assets (In x10M Rs) Proprietary Ratio 2009 9344. There are no outside liabilities.43632 639 2004 3591.57214 05 2006 5452.04 %. The higher the ratio.9. And also reasonable proportion must be maintained between owned funds and borrowed funds. This is a good for company. the stronger the financial position of the enterprise. This ratio can not exceed 100%.33 % and increase in 2008 ± 09 it is 93.57 % and 2007± 08 is 90.169 38661 INTERPRETATION: This ratio indicates the proprietary funds to total assets.9 7484. Which inture increase the rate of equity dividend.9 10043. so the benefit of trading on equity is obtained.6 5524. A very high ratio therefore is not desired as it shows insufficient use of out side fund is made. Leverage Ratio: [9.4 93.4 9315.8 4686.1] Proprietary ratio: Meaning: The ratio shows the proportion of proprietors¶ funds to the total assets employed in known in the proprietary ratio. as it signifies that the proprietors have provided larger funds to purchase assets.1 92. Generally it is said that proprietor¶s fund should be enough to cover fixed assets.3 98.0089 1599 2003 3098 3554 87. For the year 2006 ± 07 it is 91. it means that the business does not use any outside funds.8 93.7 91. Implementation: Proprietary ratio helps to known how many proprietary funds to total assets.6 90.3366 3962 2007 6853. 42 .702098 2005 4378.2 3903. Purchases are made for cash only and firm carries business entirely from own funs only.041478 32 2008 8415.

43 . still it again varies for company to company. owners and the firm itself. Alternatively this ratio indicates the relative proportions of debts and equity in financing the assets of a firm. For the year 2008-09 and 2007-08 the debt equity ratio is 9% and 10% respectively. FOR DEBT EQUITY RATIO Particulars Long term Liabilities (In x10M Rs) Total Shareholders Funds (In x10M Rs) Debt-Equity Ratio 2009 841.2 11% 3098 19% INTERPRETATION: This ratio indicates the debt to equity ratio. as benefit of trading on equity is not availed of and the rate of equity dividend will be comparatively lower. A lower ratio is not profitable from the view point of equity share holders.104 2005 350.54 2007 411.304 2004 395. The company with high debt position will have to accept strict conditions from the lenders.032 2003 588.9 6% 5452. A higher ratio means that outside creditors have a larger claim than the owners of business.9 9% 8415.62 9344. This is a bad for company as compare to 2005-06 year is more debt ratio which indicate the more realize on debt fund rather owned fund.8 8% 3591.2] Debt equity ratio: Meaning: The relationship between borrowed funds and owner¶s capital is a popular measure of the long term financial solvency of a firm. The D/E ratio is an important tool of financial analysis to appraise the financial structure of a firm. But.[9. This relationship is shown by the debt ± equity ratio.234 2006 218. Implementation: This ratio reflects the relative claims of creditors and shareholders against the assets of the firm. The good impact is interest burden will be more indirectly.041 2008 841.6 4% 4378. The pressure from creditors would increase and their interference will also increase. while borrowing money. As the higher debt equity ratio it shows the weaker financial condition of the company. It has important implication from view point of the creditors. For the year 2004 ± 05 it is 8 %and 2005± 06 is 4 % and increase in 2006 ± 07 it is 6%.4 10% 6853.

1956. 2) REVENUE RECOGNITION Domestic and export sales are recognized on transfer of significant risks and rewards to the customer which takes place on dispatch of goods from the factory / stockyard / storage area and port respectively.11 Years Dies and Jigs 4 Years Electronic Data Processing Equipments 3 Years In respect of assets whose useful life has been revised. the applicable accounting standards notified under section 211(3C) of the Companies Act. 4) BORROWING COSTS Borrowing costs that are directly attributable to the acquisition. based on the managements estimate of the useful life of the assets. 5) DEPRECIATION a) Fixed assets except leasehold assets viz land and vehicles are depreciated on the straight line method on a pro-rata basis from the month in which each asset is put to use.Accounting Policy 2009 1) BASIS FOR PREPARATION OF ACCOUNTS These financial statements have been prepared to comply in all material respects with all the applicable accounting principles in India. higher depreciation has been provided on the straight line method over the following useful lives: Plant and Machinery 8 . 44 . 1956 except for certain fixed assets where. Assets acquired under finance lease are capitalized at the lower of their fair value and the present value of minimum lease payments. b) Leasehold assets viz land & vehicles are amortized over the period of lease. construction or production of qualifying assets are capitalized till the month in which each asset is put to use as part of the cost of that asset. the unamortized depreciable amount is charged over the revised remaining useful life of the assets. 1956 and the relevant provisions of the Companies Act. 3) FIXED ASSETS Fixed assets (except freehold land which is carried at cost) are carried at cost of acquisition or construction or at manufacturing cost (in case of own manufactured assets) in the year of capitalization less accumulated depreciation. Depreciation has been provided at the rates prescribed in Schedule XIV to the Companies Act.

are depreciated at the rate of 100%. which are capitalized and depreciated accordingly) are charged to revenue on consumption except those valued at Rs.c) All assets. The Gratuity Fund is recognized by the income tax authorities and is administered through a Trust. Assets purchased during the year costing Rs 5. which are charged off to revenue in the year of purchase. c) Machinery spares (other than those supplied along with main plant and machinery. These Funds are administered through Trusts and the Companies contributions thereto are charged to revenue every year. 7) INVESTMENTS Current investments are valued at the lower of cost and fair value. 9) EMPLOYEE BENEFIT COSTS The Company has Defined Contribution Plans for post employment benefits namely Provident Fund and Superannuation Fund which are recognized by the income tax authorities.000 or less. and net realizable value. The Company also maintains an insurance policy to fund a post-employment medical assistance scheme. 8) RESEARCH AND DEVELOPMENT Revenue expenditure on research and development is charged off against the profit of the year in which it is incurred. b) Tools are written off over a period of three years except for tools valued at Rs. the individual written down value of which at the beginning of the year is Rs. Long-term investments are valued at cost except in the case of a permanent diminution in their value. 5. Gratuity. Capital expenditure on research and development is shown as an addition to fixed assets and depreciated accordingly. the liability for which is determined on the basis of an actuarial valuation at the end of the year.000 or less are depreciated at the rate of 100%. 6) INVENTORIES a) Inventories are valued at the lower of cost. which is a Defined Contribution plan administered by The New India Insurance Company Limited. 5. 45 . 5. in which case the necessary provision is made. The Company has Defined Benefit Plans namely leave encashment/ compensated absence. Interest on Provident Fund and Retirement Allowance for employees.000 or less individually.000 or less individually which are charged off to revenue in the year of purchase. The Companies contribution to State Plans namely Employees State Insurance Fund and Employees Pension Scheme are charged to revenue every year. determined on the weighted average basis.

Current tax is recognized based on assessable profit computed in accordance with the Income Tax Act and at the prevailing tax rate. 11) GOVERNMENT GRANTS Government grants are recognized in the profit and loss account in accordance with the related scheme and in the period in which these are accrued. Deferred tax assets are carried forward to the extent it is reasonably / virtually certain that future taxable profit will be available against which such deferred tax assets can be realized. comprising current tax. 15) IMPAIRMENT OF ASSETS 46 . Deferred tax assets are reviewed at each balance sheet date and written down/ written up to reflect the Amount that is reasonably/ virtually certain (as the case may be) to be realized. Gains and losses arising out of actuarial valuations are recognized immediately in the Profit and Loss Account as income or expense. fringe benefit tax and deferred tax. 13) DIVIDEND INCOME Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to measurability or collectability exits. Deferred tax is recognized for all timing differences. 10) CUSTOMS DUTY Custom duty available as drawback is initially recognized as purchase cost and is credited to consumption on export of vehicles. is included in determining the net profit/ (loss) for the year. 14) INTEREST INCOME Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists. 12) TAXES Tax expense for the period.Termination benefits are recognized as an expense immediately. Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

If the carrying amount of the asset exceeds its recoverable amount. If any such indication exists. an impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount. the Company estimates the recoverable amount. 47 .At each balance sheet date. 16) PROVISIONS AND CONTINGENCIES The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. the Company assesses whether there is any indication that an asset may be impaired. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that will probably not require Outflow of resources or where a reliable estimate of the obligation cannot be made.

130 million).000 million). 3. the Company has deposited a sum of Rs. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. iv. as lessee. 2 million). 2. e) The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. 4. 1234 million (Previous year Rs. and banks as lessors for leasing of dies and moulds of certain models aggregating Rs. Sales-tax demands of Rs. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes. 9. 22 million (Previous year Rs. v. c) A guarantee given to HDFC Bank Limited against Non-Fund based facilities granted by the bank to a group company Suzuki Powertrain India Limited of Rs. Income-tax demands of Rs. the Company has deposited a sum of Rs. 1.745 million).000 million). Nil (Previous year Rs.905 million). 3. Nil (Previous year Rs. Against this. ii.Notes to Accounts Year End: Mar '09 1) Contingent Liabilities: a) Claims against the Company disputed and not acknowledged as debts: i. vi. 253 million).50 million). Against this. 27 million) under protest. 118 million). Nil (Previous year Rs. 4. Service-tax demands of Rs. 22 million) under protest. Against this. 2 million (Previous year Rs. the balance outstanding as at the year-end is Rs. b) As co-lessee in agreements entered into between various vendors of the Company. the balance outstanding as at the year-end is Rs. 23 million (Previous year Rs. Customs duty demands of Rs. Against this. Nil (Previous year Rs.543 Million).799 million (Previous year Rs. 639 million) lodged by various parties. the Company has deposited a sum of Rs.802 million under protest (Previous year Rs.50 million (Previous year Rs. 2 million) under protest. Against this. the Company has deposited a sum of Rs.466 million (Previous year Rs.2 million (Previous year Rs. 3. iii. Excise duty demands/show-cause notices of Rs. Against this. d) A guarantee given to HSBC Limited against Non-Fund based facilitiesgranted by the bank to a group company Suzuki Powertrain India Limited of Rs. 118 million (Previous year Rs. 4. 48 . 194 million). Claims against the Company for recovery of Rs 606 million (Previous year Rs.

11. 644 million. 3) Estimated value of contracts on capital account. Accordingly.255 million (Previous year Rs. 2001 to 31st July. the company has adopted Accounting Standard 30 . 26 million) on account of estimated reversal of tax benefit on quantity differences on inputs. Other derivative instruments that do not qualify for hedge accounting have been recorded at fair value at the reporting date and the resultant loss/ gain has been accounted in the profit and loss account.Financial Instruments Recognition and Measurement issued by The Institute of Chartered Accountants of India to the extent it does not contradict with any other Accounting Standard notified u/s 211(3C) of the Companies Act. 4) Previous Years figures have been recast regrouped where considered necessary to make them comparable with the current year¶s figures. 49 . 9 million (Previous year Rs. excluding capital advances.605 million). as against the earlier practice of recognizing the same in the profit and loss account. 1. remaining to be executed and not provided for.5.709 million has been accounted for as a Hedging Reserve to be ultimately recognized in the profit and loss account when the underlying transaction arises. 1. in respect of derivative instruments which qualify for hedge accounting. 2015.593 million (Previous year Rs. the Company has availed of sales tax benefit amounting to Rs. 2) Outstanding commitments under Letters of Credit established by the Company aggregate to Rs 2.675 million (Previous year Rs. 12. Till 31st March 2009. 2008.The amount shown in items (b) to (d) represent guarantees given in the normal course of the Companies operations and are not expected to result in any loss to the Company on the basis of the beneficiaries fulfilling their ordinary commercial obligations.692 million). 1975 for the period from 1st August. 2) The Company was granted sales tax benefit in accordance with the provisions of Rule 28C of Haryana General Sales Tax Rules. during the current year.764 million). b) Consumption of raw material and components includes a provision of Rs. 1. 2. on valuation at the end of each period. The ceiling amount of concession to be availed of during entitlement period is Rs. amount to Rs. 3) With effect from April 1. 4) a) Consumption of raw materials and components has been computed by adding purchases to the opening stock and deducting closing stock verified physically by the management. the net unrealized loss aggregating Rs.

office appliances and certain other assets having an aggregate net book value of Rs. 2009. An audit includes examining. These Financial statements are the responsibility of the Companies management. 2. a portion of the fixed assets have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. ii) (A) the inventory (excluding materials lying with vendors) has been physically verified by the management during the year. as well as evaluating the overall financial statement Presentation. In respect of inventory lying with the vendors. these have substantially been confirmed by them. In our opinion. on a test basis. 1956 of India (the Act) and on The basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us. which in our opinion. Our responsibility is to express an opinion on these financial statements based on our audit. (b) The fixed assets are physically verified by the management according to a phased programmed designed to cover all the items. as amended by the Companies (Auditors Report) (Amendment) Order. issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act. a substantial part of fixed assets has not been disposed off by the Company during the year. We have audited the attached Balance Sheet of Maruti Suzuki India Limited. 3. over a period of Three years. is reasonable having regard to the size of the Company and the nature of its assets? Pursuant to the programmed. the frequency of verification is reasonable. except furniture and fixtures. 2004. which we have signed under reference to this report. An audit also includes assessing the accounting principles used and significant estimates made by management. evidence supporting the amounts and disclosures in the financial statements. (b) In our opinion. 367 million.Auditor's Report Year End: Mar '09 1. We believe that our audit provides a reasonable basis for our opinion. 50 . As required by the Companies (Auditors Report) Order. (c) In our opinion and according to the information and explanations given to us. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. 2003. as at 31st March. we further report that: i) (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

income tax. 51 . ix) (a) According to the information and explanations given to us and the records of the Company examined by us. pursuant to the Rules made by the Central Government of India. fixed assets and for the sale of goods and services. cess and other material statutory dues as applicable with the appropriate authorities. the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie.(c) On the basis of our examination of the inventory records. (b) In our opinion and according to the information and explanations given to us. from / to companies. wealth tax. there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory. viii) We have broadly reviewed the books of account maintained by the Company in respect of products where. the prices paid for these items are not comparable as these are of special nature. In respect of purchase of goods and materials including components from the holding company. iii) The Company has not taken or granted any loans. having regard to the explanation that certain items purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative quotations. employees State insurance. the Company is maintaining proper records of inventory. and according to the information and explanations given to us. the Company is regular in depositing undisputed statutory dues in respect of provident fund. which have been made at prices Which are not reasonable having regard to the prevailing market prices at the relevant time. in our opinion. customs duty. sales-tax. excise duty. secured or unsecured. firms or other parties covered in the register maintained under Section 301 of the Act. investor education and protection fund. we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. the Company has an internal audit system commensurate with its size and nature of its business. made a detailed examination of the records with a view to determine whether they are accurate or complete. The discrepancies noticed on physical verification of inventory as compared to book records were not material. on the basis of our examination of the books and records of the Company. however. in our opinion. service tax. iv) In our opinion and according to the information and explanations given to us. there are no transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the year. vii) In our opinion. the prescribed accounts and records have been made and maintained. the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section. v) (a) In our opinion and according to the information and explanations given to us. Further. vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA or any other relevant provisions of the Act and the rules framed there under. We have not.

(b) According to the information and explanations given to us and the records of the Company examined by us. sales-tax. in Million) Name of the statute (Nature of Dues) Income Tax Act. the particulars of dues of income-tax. excise duty and cuss as at March 31. service tax. Interest & Penalty) 1 1 1998 to 1999 High Court 3 1984 to 1989 Assessing Authority 47 2 1988 to 1992 Additional Commissioner Customs Excise & Service 1774 51 April 1986 to January 2008 Tax Appellate Tribunal/ High Court/ Supreme Court/ Commissioner Appeals The Finance Act.271 3. customs duty. Interest & Service Penalty) 370 July 1997 to September 2004 Tax Appellate Tribunal Customs Excise & Service 52 . 2009 which have not been deposited on Account of any dispute are as follows: (Rs. wealth tax. 1994 (Service Tax. 1944 (Duty. 1957 (Tax) Haryana General Sales Tax Act (Tax & Interest) Dlhi Sales Tax Act (Tax) The Central Excise Act. 1961 (Tax & Interest) Amount Amount deposited under protest amount Period to which the amount is pending Forum where the dispute is pending 5.799 1992 to 2006 Income Tax Tribunal/ High Court Appellate Commissioner Income Tax (Appeals) Wealth Tax Act.

there are no funds raised on a short-term basis which have been used for long-term investment. debentures and other investments.Customs Act. xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. 53 . xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares. in our opinion and according to the information and explanations given to us. the Company is not a dealer or trader in shares. for loans taken by others from banks or financial institutions during the year. xv) In our opinion and according to the information and explanations given to us. xvii) On the basis of an overall examination of the balance sheet of the Company. xix) The Company has no outstanding debentures as at the year end. the term loans have been applied for the purposes for which they were obtained. the Company has not defaulted in repayment of dues to any bank or debenture holders as at the balance sheet date. xi) According to the records of the Company examined by us and the information and explanations given to us. xiv) In our opinion. on an overall basis. 1962 (Duty & Interest) 27 22 February 2003 to August 2003 Customs Excise & Service Tax Appellate Tribunal Or detailed listing refer Note 30 on Schedule 23 x) The Company has no accumulated losses as at March 31. xx) The Company has not raised any money by public issue during the year. 2009 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. debentures and other securities. the terms and conditions of the guarantees given by the Company. are not prejudicial to the interest of the Company. xvi) In our opinion. and according to the information and explanations given to us. xiii) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/societies are not applicable to the Company. securities.

nor have we been informed of such case by the management. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. Anupam Dhawan. (e) On the basis of written representations received from the directors as on March 31st 2009 and taken on record by the Board of Directors. and (iii) In the case of the Cash Flow Statement. we have neither come across any instance of fraud on or by the Company. which to the best of our knowledge and belief were necessary for the purposes of our audit. Membership Number. (b) In our opinion. noticed or reported during the year. (f) In our opinion and to the best of our information and according to the explanations given to us. (c) The Balance Sheet. none of the directors is disqualified as on 31st March 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act. 4. of the cash flows for the year ended on that date. the Balance Sheet.F084451. and according to the information and explanations given to us. carried out in accordance with the generally accepted auditing practices in India.xxi) During the course of our examination of the books and records of the Company. Partner. of the profit for the year ended on that date. we report that: (a) We have obtained all the information and explanations. Further to our comments in paragraph 3 above. (ii) In the case of the Profit and Loss Account. Profit and Loss Account and Cash Flow Statement dealt with by this report have been prepared in compliance with the applicable accounting standards referred to in sub-section(3C) of Section 211 of the Act and Accounting Standard 30. Financial Instruments: Recognition and Measurement issued by the Institute of Chartered Accountants of India to the extent it does not contradict any other accounting standard referred to in sub-section (3C) of Section 211 of the Act. For and on behalf of Price Waterhouse Chartered Accountants. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. the said financial statements together with the notes thereon and attached thereto give in the prescribed manner the information required by the Act and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) In the case of the Balance Sheet. Place: New Delhi Date: April 24. of the state of affairs of the Company as at 31st March 2009. (d) In our opinion. 2009 54 .

and has been a consistent and strong performer on the stock exchange. The downfall of net profit during the financial year 2008-09 is 29. Their continuous efforts at cost cutting and improving productivity. even in good times.During the financial year 2008-09 the there is downfall in the growth of the company. 55 .6% over the financial year 2007-2008. They are practically debt free and have a healthy cash balance. have helped them in making reasonable profits despite the impact of higher commodity prices and weaker rupee.575 units in the year2009-10 are the highest ever annual export by the company. The export sales of 147. The main reason behind this downfall is because of the global recession and the price of commodities of Maruti was quite high in the commodity market. They have financed all growth from internal resources.The total sales numbers in 2009-10 mark a growth of 29% over last financial year. giving handsome returns to investors. company has a trend of growth from 2003 to 2007.Conclusion Maruti was listed in 2003. Maruti has crossed sale of 1million cars and by achieving this now it has become landmark for Maruti where other companies will take time to reach and of course they have raise their bar for themselves also. From above facts and figures we reach to the conclusion that the future is exciting and full of promise. Maruti Suzuki India LTD.

7 0 42.4 125.8 0 3296.3 -207.1 2247.6 31.Appendix 1 Balance Sheet of Maruti Suzuki Balance Sheet(2009-2000) of Maruti Suzuki *All numbers are in INR and in x10M 200903 200803 200703 200603 200503 200403 200303 200203 200103 200003 SOURCES OF FUNDS : Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets.9 2735.8 900.8 3487.8 3016.7 3409.9 900.5 1422.3 103.2 881.2 630.6 4566.7 3866.5 144.1 1304.1 0.1 3097.8 1218.6 7484.1 -167. Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities 144.2 1266.7 6146.8 1211.5 231.4 812 676.6 1763.6 4378.6 1465.6 3458.4 240.2 58.2 96.1 -170.8 438.2 380.8 95.4 471.4 5308.5 466.7 307.6 3259.4 526.8 1401.7 2110 865.6 7484.7 698.5 0 736.2 0 92 2051.3 88.4 671.2 644.7 5524.7 3499.5 649.2 666.1 10043.8 1364 487.5 144.8 487 918.1 1939 330.2 2011 1505.4 698.9 550.4 234.3 9200.8 984.3 4686.4 2251 2014.4 8270.5 1061.6 110.7 3072.9 598.4 342.5 144.1 4234.9 517.1 1416 2093.9 1201.5 132.6 311.5 397.4 1730.1 0 2659.4 0 1695.8 0 4070.5 144.8 3397.4 681.7 307.4 1051.3 5180.5 239.8 9315.3 3173.5 144.2 1314.1 561.7 119.6 311.4 881.3 87.2 8720.3 3988.7 369.1 1954.9 9.6 2825.1 3554 3363.1 125.5 71.9 2456.7 52.5 86.5 144.1 546.7 2430.3 1038 701.2 1677.9 -110 -183.3 78.3 4686.8 1478.3 132.5 272.3 5491.2 3098 2707.5 2575 2510.6 1619.8 4384.6 459.3 132.9 2258.8 71.9 2972 2018.1 1608 1531.1 2175.3 1754.6 199 235.4 6853.1 63.2 2779.7 2953.4 1977.5 635.6 1029.4 1297.9 456 656 1112.9 8415.4 325.1 3179.2 56 .5 747.7 1090.7 277.9 6709.9 1073.3 389.3 3754.6 1324.7 4513.4 3903.6 439.4 646.8 0 0 0 -155.2 675.1 2018.1 839.2 989.1 121.7 0 0 0 234 269.4 1135.1 1516.1 0 0 0 10043.7 263.3 72.3 3446.6 902.9 2782.8 9315.3 3754.1 599.8 0 861.7 622.9 99.4 0 1873.7 1026.2 0 0 0 0 0 1830.1 0.7 0 0 0 0 0 74.7 0 250.8 2255.3 71.8 3591.4 3903.3 2642.1 1353 2186.6 4649.9 5452.4 3554 3363.3 0 0 0 156 260.8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9344.6 0 0 0 0 0 16.9 4405 3740.1 1684.2 793.2 5053.9 1533.9 300 395.9 655.2 320.4 308.7 5524.3 7285.5 2912.4 368.2 1332.2 4954.5 689.5 -77.6 3458.5 990.1 567.

3 2502.7 0 30 4.8 9.3 2055.8 0 0.2 2503 759.7 11468.9 0 309.07 1072.53 0 9671 1797.1 13335.29 237.3 538.1 2737.1 5.2 271.3 853.1 37.57 41.15 167.1 43.69 0 2502.7 1486.5 357.8 4393.3 7021.5 185.56 124.2 263.72 621.99 2046.2 5839.4 0 15934.2 3130.57 41.7 0 240.56 18.67 264.6 463.4 1943 9104.7 1562 26.8 621.6 -20.4 340.9 0 80.7 0 30 78.2 9315.9 3442.97 1197.2 0 0 0 0 1997.6 837.1 0 237.45 141.1 35.6 1730.2 342.09 1669.3 668.5 941.3 621.2 9485.68 129.2 3133.8 2.8 293.65 188.52 6973.7 456.29 -8.88 0 6892.6 318 141.71 94.9 429.3 13.4 2035.3 0 342.6 6989.1 551.65 40.1 55 0 0 330.5 -0.1 191.4 18.25 151.1 57.07 0 3442.9 769.65 40.9 101.1 217.1 336.44 206.5 51.1 193.8 61.3 -269.96 576.4 6.7 2433.2 648.5 1801.88 107.8 403.7 2211.8 0 40 29.7 2411.82 0 2335.4 60.8 117.6 -6.3 5.5 860.6 0 -73.9 118.5 254.8 459.9 53.1 1189.8 37.2 236 12681.76 71.2 8004.01 185.71 105.4 78.4 7025.9 708.9 10923.1 276.29 53.1 1308.7 36 1761.8 6716.35 13791.2 12015.6 21172 21025.1 0 2757.27 0 2245 0 72.02 184.63 0 7025.6 2551.3 130 0 90 53.9 0 120.9 42.25 29.13 57 .25 29.94 0 12462.9 7361.67 8563.4 0 168.1 0 25 243.2 211.8 59.2 58.9 324.57 323.7 -11.3 15763.5 0 -23.6 49.2 141.8 1110.4 285.8 20.19 0 10625.8 5637.1 998.8 51.5 -356.9 7534.2 101.4 266.4 -243.5 8928.83 324.7 144.21 0 2233.7 0 8177.6 3071.3 7398.03 59.3 4393.72 0 2269.6 146.1 385.2 7074.4 16.9 52.4 43.1 0 70 40.83 0 6996.7 9087.7 -32.1 282.6 14696.56 211.2 9.03 291.29 53.1 -79.5 1675.6 3.89 0 6704.3 0 30 18.2 2233.1 0 70 41.1 322.71 0 5637.26 5563.2 2652.7 494.3 51 2382.9 588.03 59.8 2269.2 129 75.1 2325.6 57.2 0.2 8981.8 2013.99 2201.2 322.1 536.Appendix 2 Income Statement Income Statement (2009-2003) of Maruti Suzuki *All numbers are in INR and in x10M 200903 (12) 200803 (12) 200703 (12) 200603 (12) 200503 (12) 200403 (12) 200303 (12) 200203 (12) 200103 (12) 200003 (12) INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst.2 635.6 17891.4 1750 587.1 0 100.3 706.8 0 0 104.25 60.7 146.29 153.1 20530.4 1264.56 18.4 7180.22 82.5 147.9 524.8 33.2 568.2 0 0 -269.16 9335.2 77 461.8 197.7 580.3 19065 17205.3 95.3 346.1 -7.4 2279.7 11047.9 2509.3 598.4 227.71 1535.8 656.4 199. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share(Adj)-Unit Curr Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr 23182.54 0 6689.6 14753.8 1304.7 604.33 5889.84 0 18738.5 0 100 59.8 2588.5 -94.8 251.82 57.29 166.35 5616.4 377.29 -287.4 2335.9 39.19 10739 97.2 0 67.46 92.6 2757.8 1218.1 15051.7 89.8 542.

1 116.4 -152.3 -184.5 269.6 -119.2 1152.1 -3.9 0 0 0 0 167.7 -124.2 1803 1574.2 -81.8 1822.3 172.5 282.8 666.7 1035.8 494.2 -580.6 105.8 0 200703 200603 200503 200403 200303 200203 1401.4 0 0 -452.9 769.3 0 9.3 0.9 770.8 -72 -79.5 0 0 0 0 0 0 0 0 -635.7 -4.5 -616.5 -29.2 -81.2 -580.8 2.9 -3 5.4 285.5 -55.2 113 -152.4 -89.1 0 0 0 0 0 0 0 -99.8 2503 568.5 -192.6 653.2 566.7 645.5 1193.5 2028 1222.4 -30.7 0 0 -864.5 -244.4 -233.9 1645.2 782.Maruti Suzuki 200903 330.8 1750 1304.3 4.4 -43.3 -130.6 92 -336.3 -12.2 -166.5 1627.3 89.1 0 0 0 0 0 0 0 -7.6 -265 135.5 105.Appendix 3 Cash Flow Statement Cash Flow Statement ( *All numbers are in INR and in x10M Cash Flow Summary Cash and Cash Equivalents at Beginning of the year Net Cash from Operating Activities Cash Flow From Operating Activities Net Profit before Tax & Extraordinary Items Adjustment For Depreciation Interest (Net) Dividend Received P/L on Sales of Assets P/L on Sales of Invest Prov.6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 216.5 0 0 -12.7 -37.5 -53.4 2028 1222.2 0 0 -26.9 -73. Lease & Rental Chrgs Others Total Adjustments (PBT & Extraordinary Items) Op.8 -85.6 -144 12.6 -226.7 -103.1 175 -20.4 240.3 279 397.9 -61 0 0 69.4 22 11. Profit before Working Capital Changes Adjustment For Trade & 0th receivables Inventories Trade Payables Loans & Advances Investments Net Stock on Hire Leased Assets Net of Sale Trade Bill(s) Purchased Change in Borrowing Change in Deposits Others Total (OP before Working Capital Changes) Cash Generated from/(used in) Operations Interest Paid(Net) Direct Taxes Paid Advance Tax Paid Others Total-others Cash Flow before Extraordinary Items Extraordinary Items Excess Depreciation W/b £¢ ¡¡  ¡¡  1) .3 1675.8 706.7 2663.2 989.4 0 0 0 0 -635.9 -18.6 770.6 0 0 0 284.6 -3.3 0 0 0 -0.1 1269.6 356.1 -21.1 322.2 0 0.7 -244.8 -333.6 1029.5 44.3 -0.3 -86.3 200103 31.3 -12.8 134.3 0 0 191.1 298 28.8 124.1 -254.7 47.6 1074.5 0 0 9.8 71.9 2234 1884.7 0.2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 429.7 -8.9 118.3 87.4 456.3 0 200803 1422.9 2279.6 -3.7 1035.3 517 318.5 0 -864.9 2.2 -38.7 0 -452.3 382.8 -269.4 -233.1 0 0 0 0 0 0 0 0 -8.2 322.5 322.2 -72.5 653.5 -23.4 1193.9 0 0 0 -45.3 342.5 -213.4 -36.7 1822.4 -499.9 0 0 58 . & W/O (Net) P/L in Forex Fin.4 -35 43.6 2694.3 -12.4 -499.1 -48.7 -19 19.1 194.8 0 -42.7 -74 0 0 0 0 0 0 0 0 -283.8 0 271.6 1074.9 -10 -1.8 1745.9 0.1 2687.9 -20.4 168 -214.

2 240.2 .3 0 0 101.9 5224. n Sub d re L n t Sub d re n e t ent n Gr up ue f Sh.9 149 112.5 # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 1620.8 1401.8 6.8 3.7 0 144.2 399 0 0 0 13.6 11.7 8. f nc.3 430 319.1 0 0 0 0 0 0 0 0 0 0 0 67.4 0 129.2 789.2 1608.7 237.3 0 0 210.8 152. n cq.5 144 166.3 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 536.9 0 541.6 12244.2 1422.9 0 0 1395.9 87.2 0 234 749.6 0 0 222.7 0 0 140.1 2.2 132.9 0 0 0 0 0 0 0 63.3 10925.5 0 23.1 0 0 0 0 0 193.4 0 57.5 19237.8 54.6 0 0 0 0 0 0 0 0 11.8 0 0 0 0 0 530.4 0 0 0 0 41.6 0 39.8 234 110 1.7 100.3 31.7 1551.3 0 0 0 0 0 0 0 0 1.2 5375.4 9346.4 # # # 17019.1 0 0 0 0 0 0 0 202.8 21.8 43.3 0 0 82.2 372. r n ther et h U ed n n e t n ct t e hF fr n e t n ct t e n e t ent n et : urch ed f F ed et et S e f F ed c pt W p t Sub dy ecd F n nc p t n e t ent : urch e f n e t ent S e f n e t ent n e t ent nc e ntere t ece ed dend ece ed n e t.3 0 132.7 91.3 0 0 0 0 0 0 0 209.7 0 0 0 0 0 0 0 0 494.5 15.7 13. n cqu.5 12.4 0 0 0 0 0 2436.3 2290.7 0 53 0 110 917.7 7.7 0 0 0 0 0 0 0 0 0 0 193.5 3.3 0 0 0 430 319. cqu t n f p ne nter rp r te ep t ther et h U ed n F n nc n ct t e hF Fr F n nc n ct t e r ceed : r ceed fr ue f h re nc h re pre r ceed fr ue f ebenture r ceed fr 0ther L n er B rr n r ceed fr B n B rr n r ceed fr Sh rt e B rr n r ceed fr ep t Sh re pp c t n ney h/C p t n e t ent Sub dy L n fr rp r te B dy y ent : Sh re pp c t n ney efund n ede pt n f ebenture f the L n e B rr n f the h rt ter B rr n f f n nc L b t e dend d She ter t nce e er e ntere t d ther et h U ed n F n nc n ct t e et nc/( ec) n h nd h qu ent h nd h qu ent t nd f the ye r 0 0 0 0 0 951.7 3.9 0 536.6 1029.9 0 0 0 0 0 0 0 0 541.5 0 0 0 0 0 0 0 504.1 0 0 0 78.3 5416.6 59 # # # # # # # # # # # # # # 0 0 0 0 0 0 0 0 0 31.2 0 0 0 28 26 44.8 0 0 0 0 0 0 0 788.3 0 42.6 0 126.5 0 0 482.9 0 0 0 101.5 0 494.1 57.5 603.1 0 0 1685.8 72 79.9 0 74.3 1092.5 2319.9 0 0 435.3 8822.2 55.4 0 0 # # # # # # # # # # # # # # # # ¨ §  ¨ © ¨ ¦  ©¨ ¨ ©¨ ¨ ¦  ©¨ ¨ ©¨ ¦ %   © ¦ ¦ ¦ " ! ¦ ¨ ¦ ¦ © ©¨   © ¦¨¤ ©  ¨ ©¦ ©©  © " ¦¨¤ ¦ ¦% © ¦ ¦  ¦ ¨ ¦ ¨ ¦ ¨ ¦  § ©  ©! ¦ § § ¥  ©! ¦ § § ¥  ! § % § §¦ ¥    §( § ¦ ¨ ¦  ¨ " © ¥ ¨¤ § ¨ § § ¨ ¥§ © ¨§ ¦© ¥ ©  ¨ ¦ ¨ ©¨ §( § ¦ ¨ ¦  ¨ " §¤ © ¦ ©§ % ¥§ §¤ ©! ¦ § § ¥  § ¥§ §¤ ©! ¦ § § ' ¨ ¥§ ¥§ §¤ ©! ¦ § § ¥  ! § % § ©© ¥§ §¤ © ¥ ¦¥ ¨ §¤ ©  ¦& © ¨ © § ©© ¥§ © §¤ © © ¦ ¦ ¦ " ! ¦ ¨ ¦ ¥§ §  ©¨ © ¦ ¦ ¦ " ! ¦ ¨ ¦ ¦ © ©¨   ©  © ¦ ©§ % ¨ § § © ¦ ¨ ¥§ § § ¦ ¦ ©¦ " § ¦ ©  § ¨ "© § § ©© ©§ § " ¦ ¥ ©  ©§ § § © ¨§ © ¦¨ ¦ ¦ ©  ©  © ¦¨ ¦ ¦ © ¦  ¦ ¦% ¦  ©  ¥§  ¥ ©  © ¥ ©  § ¨ ¤ © ¥ ©  § ©¨ ¥ ©  ¨ ¦ ¨ ¨ ¦ ¨ ¦ $  ¦© ¨ ¦ ¨ ¤ ¨ ¦ ¨ © ©©" ¦ § ¨ ¤ © ©©" ¦ § ©¨ ¥ ©  © ©© " ¦ © ¦ ¦ ¦ " ! ¦ ©  ¥§ §  ©¨ © ¦ ¦ ¦ " ! ¦ ©  ¦ © ©¨   © ¨  § § ¦¨    §¦ ¨ ¨  © ¨ § ¦ ¤  © ¨ § ¥ ¨¤  ¨  § ©¨ § ¥ ¦¥ ¤ re u n Le e f nd y ent rd V S r r Ye r ' t n G n n F re ch.5 0 0 567.u ) 0 0 0 0 454.9 0 0 0 0 0 0 142.5 989.7 71.1 18696.9 9.2 98.5 1939 0 0 0 0 399.7 91.5 85.6 16.3 330.7 3845.9 0 68.7 0 0 0 0 0 0 0 0 7.1 0 0 0 0 0 37 0 0 0 0 0 128.8 0 0 11 331.2 72. f n e t.7 0 47.4 0 0 0 0 0 3047.2 17012.

66 9.4 31.98 3.45 29.13 24.07 4.18 11.42 2.91 30% 15% 1.02 -5.08 35.19 14.92 2.08 7.83 6.28 21.37 3.02 15.95 19.63 6.4 5.22 2.96 6.61 10.97 43 14.1 4.91 8.47 33% 24% 1.19 8% 8% 1.54 5.93 8.Appendix 4 Ratio Key Ratios for Maruti Suzuki 200903 200803 200703 200603 200503 200403 200303 200203 200103 200003 Key Ratios Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio Turnover Ratios Fixed Assets Inventory Debtors Interest Cover Ratio Profitability Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) Return on Capital Ratio ROCE (%) RONW (%) 9% 6% 1.4 7.67 6% 6% 1.18 29.89 5.4 6.63 15.63 3.9 23.9 29.69 86.06 34.63 15.54 14.48 10.43 23.43 12.77 24.59 -3.52 10.63 25.83 10.15 5.58 9.34 18.1 21.84 16.99 8.37 2.2 11.92 1.8 9.24 21.11 20.67 4.52 3.89 12.08 10% 7% 1.59 0.05 13.75 12 2.69 61.68 24.42 11% 11% 1.69 37.44 -9.62 15.78 13.6 11.22 2.74 24.47 2.03 1.88 25.11 5.47 14.51 22.79 6.47 12.91 9.78 6.6 4.25 3.13 3.35 2.41 7.42 9.76 12.44 -2.7 12% 2% 1.15 5.16 0.23 30.55 1.06 23.44 9.25 13.38 4% 4% 1.93 60 .59 19% 18% 1.93 12 13.38 11.73 2.63 25.21 9.64 -2.05 13.

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