Sathi Project To Company

A STUDY ON FINANACIAL MANAGEMENT AT APPLE AUTO AGENCY
A Project Report on
“A STUDY ON FINANCIAL STATEMENT AT APPLE AUTO AGENCY”
A Project report submitted to Bangalore University in partial fulfillment of
Requirement for the award of the degree of
Bachelor of Business Management
Bangalore University
Submitted by
SATHISH.R
Register No: (13PAC24045)
Under the guidance of
Mrs. MANJU
ASSISTANT PROFESSOR
Department of Commerce and Management
Swamy Vivekananda Rural Education Society ®.1963

Swamy Vivekananda Rural First Grade College
Chandapura, Anekal Taluk, Bangalore – 99
2015 – 2016
INTRODUCTION
FINANCE:
SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 1
Finance is often defined as simply as management of money of “funds

Management modern finance however is a family of business activity that include the
origination, marketing and management of cash and money surrogates through a
variety of capital accounts, instruments and markets created for transacting and
trading assets, liabilities and risks. Finance is conceptualizes structured and regulated
by a complex system of power relations with political economics in the state of global
markets.
Finance is both art and science although these activities increasingly coverage
through the instant technical and institutional focus on measuring and hedging risk-
complex financial product and services for their own as well as their client’s accounts.
Financial performance measures assess the efficiency and profitability of

investment, the safety of debtor’s claim against assets, likelihood that derivatives
instruments will protect the investors against the variety of market risks.
Finance is regarded as the lifeblood of business enterprise. This is because of

modern money oriented economics; Finance is one of the basic foundations of all
kinds of economic activity. It is the master key that provides access to all the sources
for being employed in the manufacturing and merchandising activities. It has been
rightly said that business needs money to make more money. However it is also true
that business houses get more money only when it is properly managed.
The main activities to the successful administration of finance in any organization

comprise financial planning, raising the needed funds, financial analysis control.
Analysis of financial statements in a business deserved much attention in carrying out
finance function. It helps to regain prospective analysis of operative period for the
purpose of evaluating the wisdom and efficiency of financial planning; Analysis of
what has happened should be of great value in improving him standards, techniques
and procedures of financial control involved in carrying out finance function.
MEANING OF FINANCE:
Finance refers to the provision of money at the time whenever it is required by the
enterprise. The Finance function may be defined as a procurement of funds and their
effective utilization.

DEFINITON OF FINANCE
In the words of R.C. Osborn, “The finance function is the process of acquiring
and utilizing funds by a business”.
DEFINITION OF BUSINESS FINANCE
According to prather and wert, “Business finance deals with raising,

administering and distributing funds by privately owned business units operating in
non-financial fields of industry”.
DEFINITION OF FINANCE MANAGEMENT
According to phillippatus, “Financial management is concerned with the

managerial decisions that result in the acquisition and financing of long term and
short term credits for the firm. The analysis of their decisions is based on the expected
inflows and outflows of funds and their effects upon managerial objectives.
Financial management emerged as distinct field of study at the turn of the century. Its
evaluation may be divided into two broad phases.
 The traditional phase

 The modern phase
The traditional phase and modern phase finance theory, in general resist on the
premise that the goal of the firm should be to maximize of market value of its equity
shares. The goals of maximization of shares as wealth, expressing the shareholders
point of view, several alternatives of returns on equity etc, Maximization of profit is
not as inclusive goal as maximization of shareholders wealth. It suffers from several
limitations like profit is obscure terms not a proper guide to decision making. It
should be expressed either on a per share basis or in relation to investment.
KEY ACTIVITIES OF FINANCIAL MANAGEMENT
 Financial analysis, planning and controlling

 Management of firm’s assets structure

 Management of firm’s financial structure
CLASSIFICATION OF FINANCE
The subject of finance has been traditionally classified into four classes
Finance
Public finance Private finance Institutional finance International
a. States Government a. Personal finance

b. Local self-Government b. Business finance
c.Central Government c. Finance of Non-profit organization
1. Public Government:
Public finance deals with the requirements, receipts, and disbursements of

funds in the government institutions like status, local self, governments and
control governments.
2. Private Government:
Private finance is concerned with requirements, receipts, and disbursements of
funds in case of an individual, a profit seeking business organizations and a non-
profit organization. Thus, private finance can be classified into:
a. Personal finance: It deals with the analysis of principles and practices involved
in management one’s own daily need of funds.
b. Business finance: The study of principles, practices, procedure, and problems
concerning financial management of profit making organization engaged in the
field of industry, trade, and commerce is undertaken under the discipline of
business finance.
c.Finance of Non-profit organizations: The finance of non-profit organizations
concerned with the practices, procedures and problems involved in financial
management of charitable, religious, educational, social, and other similar
organizations.

3. Institutional finance:
New areas of finance are developed keeping in view of specific requirement of
finance and solving the problems, i.e., development of institutional finance. In the
economics set up of a country there are many financial institution such as bank,
insurance companies, financial corporations, unit trusts, etc.
4. International finance:
This area of finance focuses attention on flow of funds beyond national
boundaries. Each country has its own currency and it has to be exchanged into the
currency of other countries for buying and selling goods and services. Many
government put restrictions on the exchange of currency and these may affect
business transactions.
AIMS OF FINANCE FUNCTION
The finance function has the following aims:
1. Assessing the financial requirements:

The main objective of finance function is to assess the financial needs of
an organizations and then findings out suitable sources for raising them. The
sources are commensurate with the needs of the business.
2. Proper utilization of funds:
Thought rising of funds is important but their effective utilization is more
important. The funds should be used in such a way that maximum benefits are
derived from them. The returns from their use should be more than their cost.
3. Increasing profitability:
The planning and control of finance function aims at increasing
profitability, sufficient funds will have to be invested. Finance function should
be so planned that the concern neither suffers from inadequacy of funds nor
wastes more funds than required.
4. Maximizing Value of the Firm:
Finance function also aims at maximizing the value of the firm. It is
generally said that concern’s value is linked with its profitability.

SCOPE OF FINANCE FUNCTION

The scope of finance function is as following:
1. Estimating financial requirements:
The first task of a financial manager is to estimate short –term and long-
term financial requirements of his business.
2. Deciding capital structure:
The capital structure refers to the kind and proportion of different
securities for raising funds. After deciding about the quantum of funds
required it should be decided which type of securities should be raised.
3. Selecting a source of finance:

After preparing a capital structure, an appropriate source of finance is
selected. Various sources, from which finance may be raised, include. Share
capital, debentures, financial institutions, commercial banks, public deposits,
etc.
4. Selected a pattern of investment:
When funds have been procure than a decision about investment pattern is
related to the use of funds. The decision-making techniques such as capital
budgeting, opportunity cost analysis may be applied in making decision about
capital budgeting.
5. Proper cash management:
Cash management is also an important task of finance manager. He has to
assess various cash needs at different times and then make arrangements for
arranging cash.
6. Implementing financial controls:
An efficient system of financial management necessitates the use of
various control devices. Financial control devices generally used are: a)
returns on investment, b) budgeting control, c) break even analysis, d) cost
control, e) ratio analysis, f) cost and internal audit.
7. Proper uses of surplus:
The utilization of profit or surplus is also an important factor in financial
management. A judicious use of surplus in essential for expansion and
diversification plans and also in protecting the interests of shareholders.

ORGANIZATION STRUCTURE OF FINANCE
The organization of the finance function in a big firm may appear as depicted in
following figure. The ultimate responsibility of discharging the finance function
is that of the board of directors which discharge this function through the chief
financial officer (CFO).
Director (finance)
Finance manager Accounts manager/

treasurer controller
Budget Cash Credit Financial Tax Internal

divisio management management accounting managemen audit
n
t
Capital expenditure
management
NATURE OF FINANCE FUNCTIONS
1. In most of organizations, financial operations are centralized. This results in

economics.

2. Finance functions are performed in all business firms, irrespective of their

sizes/legal forms of organizations.
3. They contribute to the survival and growth of the firm
4. Finance functions are primarily involved with the data analysis for use in
decision-making.
5. Finance functions comprise control function also.
6. The central focus of finance function is valuation of the firm.
FINANCIAL MANAGEMENT
INTRODUCTION
Finance is one of the major elements, which activates the overall growth of the
economy; finance is the lifeblood of economy activity a well-knit financial system
directly contributes to the growth of the economy.
Financial management is that managerial activity which is concerned with planning

controlling of the firm’s financial resources. Through it was a branch of economies
until 1890, as a separate activity or discipline it is origin. Still, it has no unique body
of knowledge of its own, drawn heavily on economics for its theoretical concepts
even today.
Finance manager is a person who heads the department of finance. He forms

important activities in connection with each of the general functions of the general
functions of management ; he groups activity in such a way that areas of
responsibility and accountability are clearly defined, Has focus is on profitability of
the form.
Financial management is a managerial activity that is concerned with the planning and
controlling of the firm’s financial resources. It deals with finding out various sources
for raising funds for the firm. As a separate activity or as a discipline it is fairly
recent. It was a part of economy until 1890. It is concerned with the managerial
decision that results in the acquisition and financing of short term and long term
credits of the firm. As such it deals with the situation that requires selection of
specific assets as well as the problem of size and growth of an enterprise. The analysis

of these decisions is based upon expected inflows and outflows of funds and their
effect upon managerial objectives. It primarily deals with raising, administering and
disbursing funds by privately owned business units. Financial management deals with
the financial problems of corporate enterprises. Financial management covers all
financial activities and plays a very important role right from the stage of inception to
its growth and expansion.
An appendage to the finance with creation of complex industry structure,

finance function has grown to very great heights. One cannot think of business
activity, which is concerned with planning and controlling of firms financial resources
raising funds for the firm which is suitable and economical for the business,
appropriate employment of funds thereof and all business decision has financial
management is applicable every type organization, irrespective of size, kinds of
nature.
MEANING OF FINANCIAL MANAGEMENT
Financial management refers to the management of finance. It is the effective

and efficient utilization of financial resources. It must create a balance among
financial planning, procurement of funds, profit administration and sources of
funds.
IMPORTANCE OF FINANCIAL MANAGEMENT
Financial management is applicable to every type of organization, irrespective of

size, kind or nature. The core of financial policy is to maximize earnings in the long
run and optimize then in the short run. The reason for placing the finance function in
the hands of top management may be attributed to any of these following reasons.
Finance is needed to promote or establish the business, acquire fixed assets, make
investigations such as market surveys, development of products.
Financial decisions are crucial to the survival of the firm. At no cost can a firm
affords to threaten its solvency because solvency is affected by the flow of funds that
is a result of various financial activities, top management being in position to co-
ordinate those activities retains financial function in its control. It also deals with

financial planning acquisition of funds, use and allocation of funds and financial
control.
Some of the importance of the financial management is as follows:
1. Financial planning and control:

Finance is a base for all the business activities should be not only
harmonized but also planning determination and implementing offer analysis
of finance.
2. Essence of managerial decision:
Financial management provides a sound base to all managerial decision.
Financial management is the focal point in the process of decision making
such as production, sale employees, research and development decisions are
based on financial management.
3. Improve profitability:
Profitability of the concern purely depends on the effectiveness and proper
utilization of funds by the business concern.
4. Financial management is a scientific and analytical analysis:
In the process of decision making and financial analysis modern
mathematical techniques are used.
5. Continuous Administration Function:
In older times financial management was used periodically and its
important was limited to the procurement of funds but in modern times finance
is continues administration function.
6. Centralized nature:
All business activities are centrally administration and control. All financial
decision in business is taken at a central point.
7. Basis of a managerial process:
Financial management is the basis of whole management process, such as
planning co-ordination and control.
8. Measures of performance:

Financial management deals with risk and uncertainty factor which are
directly hit by profitability and risk. Thus, financial management is needed for
maintaining proper balance in risk and uncertainty.
ROLE OF FINANCE MANGERS
The role of a financial manager can be discussed under the following
Traditional role
1. Primary market
2. Secondary market
3. Financial market
4. Leverage market
5. Capital market
Modern role
1. Mergers
2. Acquisition
3. Tax planning
4. Access to foreign capital
5. Forex services
FUNCTIONS OF FINANCE MANGER
 He should anticipate the financial requirements

 Allocation of funds
 Analysis of the financial performance
 Administrates the financial activities
 Estimation of the financial management
 Capital budgeting
 Fair returns to the investors
 Maintaining liquidity and wealth maximization
KEY ACTIVITIES OF FINANCIAL MANAGEMENT

 Financial analysis, planning and controlling

 Management of firm’s assets structure
 Management of firm’s financial structure
FUNCTION OF FINANCIAL MANAGEMENT
1. Estimation the financial requirements

2. Analysis and interpretation of the result
3. Usages of CVP and BEP techniques
4. Capital budgeting
5. Working capital management
6. Profit planning and control
7. Fair returns to the investors
8. Maintaining liquidity and wealth maximization
9. Analysis of cost-volume-profits
DECISION OF FINANCIAL MANAGEMENT
1. Investment decision :-
This decision involves both short term and long term investment which in
other words means both capital assets and current assets. The investment in
current assets will depends on the credit and inventory policies pursued by
the enterprise.
2. Finance decision:-
This involves selecting appropriate sources of funds for raising money.

It is a major
Challenge for a financial executives. Provision of funds required at the proper

time .Is one of the primary tasks of the finance manager.
3. Dividend decision:-

The primary objective of any organization is to fulfill the desire of the

investors by promising a good percentage of dividends on their investment.
OBJECTIVES OF FINANCIAL MANAGEMENT
Financial management evaluates how funds are produced and used. In

financial policy is to “maximize earnings in the long run and optimize them in short
run” this calls or an evaluation of alternatives uses of funds and allocating for
business functions.
Financial management provides a framework for selecting a course of action

deciding an economically visible strategy. The main objectives of a business are to
maximize the owner’s welfare. This objective can be achieved by
1. Specific objectives:-
 Profit maximization:
The survival of the firm depends upon its ability to earn profits, depends
upon its ability to earn profits, maximization of the condition of achieving
the maximum target profit with available resources in an economic and
efficient manner.
Profit earning is the primary concern of every economic activity. A

business being an economic institution is supposed to profits to cover its
cost and funds for growth. Business can survive only when it earns profit.
Profit is the measure of the efficiency of a business enterprise. It also serves
as a protection against uncertain risk. It is remuneration for innovation .The
survival of the firm depends upon the ability to earn profits. But from the
experience it is learnt that concept of maximization is “myth”.
 Wealth maximization:

Wealth maximization refers to the gradual growth of the value of assets

of the firm in terms of benefits.
Wealth maximization is an appropriate objective of an enterprise.
Financial theory asserts wealth maximization is the single substitute for the
shareholders utility. The concept of wealth maximization tells the value of
assets in terms of benefits it can produce. Any financial action can be
budgeted in terms of benefits it can produces than the cost of action, this
concept of wealth maximization universally accept in financial decision
making. If a financial decision results in more cash inflow then outflow
then the project is considered viable. While pursuing the objective of
wealth maximization all efforts must be put in for maximizing the current
value of any particular course of action. Every financial decision should be
based on cost benefits analysis. There is rational in wealth maximization
policy is an operating financial management as society.
2. General objectives:-
 Balanced asset structure:-the subject of financial management
must have a goal of maintaining balanced asset structure of company.
 Liquidity:-liquidity of a company will exploit the long-term vision of
a company.
 Efficiency: - it is the obligation of a finance manager to be vigilant in
increasing the efficiency level of a company.
 Financial discipline:-it has become an obligatory responsibility of a
company to have financial discipline through techniques of financial
management.
FINANCIAL ANALYSIS:
The term ‘financial analysis’, also known as analysis and interpretation of financial
statements, refers to the process of determining financial strengths and weaknesses of
the firm by establishing strategic relationship between the items of the balance sheet,
profit and loss account and other operative data.
DEFINITIONS:
According to Metcalf and Titard, “Financial analysis is a process of evaluating the

relationship between component parts of a financial statement to obtain a better
understanding of a firm’s position and performance”.
TYPES OF FINANCIAL ANALYSIS
We can classify various types of financial analysis into different categories:
(1) On the basis of material used:
According to material used, financial analysis can be of two types:
(a) External analysis.
(b) Internal analysis.
(a) External analysis:
This analysis is done by outsiders who do not have across to the detailed internal
accounting records kof the business firm. These outsiders include investors, potential
investors, creditors, governments’ agencies, credit agencies and the general public.
(b) Internal analysis:
The analysis conducted by person who has access to the internal accounting
records of a business firm is known as internal analysis. Such an analysis can,
therefore, be performed by executives and employees of the organization as well as
government agencies which have statutory powers vested in them.
(2) On the basis of modus operandi:

According to the methods of operation followed in the analysis. Financial analysis

can also be of two types:
(a) Horizontal analysis.
(b) Vertical analysis.
(a) Horizontal analysis:
Horizontal analysis refers to the comparison of financial data of a company for

several years. The figures for this type of analysis are presented horizontally over a
number of columns. The figures of the various years are compared with Standard or
base year. A base year is a year chosen as beginning point. This type of analysis is
also called ‘Dynamic Analysis’.
(b)Vertical Analysis:
Vertical analysis refers to the study of relationship of the various items in the
financial statements of one accounting period. In these types of analysis the figures
from financial statement of a year are compared with a base selected from the same
year’s statements. It is also known as ‘Static Analysis’.
1.2(e) PROCEDURE OF FINANCIAL STATEMENTS ANALYSIS
Broadly speaking there are steps involved in the analysis of statements. These are
(1) Selection, (2) Classification, and (3) interpretation. The first step involves
selection of information (data) relevant to the purpose of analysis of financial
statements. The second step involved is the methodical classification of the data and
the third step includes drawing of inferences and conclusions. The following
procedure is adopted for the analysis and interpretation of financial statements:
1. The analyst should acquaint himself with the principles and postulates of
accounting. He should know the plans and policies of the management so
that he may be able to find whether these plans are properly executed or not.

2. The extent of analysis should be determined so that the sphere of work may
be decided. If the aim is to find out the earning capacity of the enterprises
then analysis of income statement will e undertaken. On the other hand, if
financial position is to be studied then the balance sheet analysis will be
necessary.
3. The financial data given in the statements should be re-organized and re-
arranged. It will involve the grouping of similar data under same heads,
breaking down of individual components of statements according to nature.
The data is reduced to a standard form.
4. The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained for helping decision –
taking.
5. The conclusions drawn from interpretation are presented to the management

in the form of reports.
METHODS OR DEVICES OF FINANCIAL MANAGEMENT
The analysis and interpretation of financial statements is used to determine the

financial position and results of operations as well. A number of methods or devices
are used to study the relationship between different statements. An effort is made to
use those devices which clearly analyze the position or the enterprise.
The following methods of analysis are generally used:
1. comparative statements
2. Common size analysis statements
3. Found flow analysis
4. Cash flow analysis
5. Ratio analysis
6. Trend analysis

7. Time series
8. Cross section analysis
9. Divisional performance
1. COMPARATIVE STATEMENTS:
The comparison of two different periodical financial statements by putting

them on separate sides and finding out the changes with the respect of each item of
the statements and overall changes in absolute and relative changes should be
properly identified with the period.
a. The accounting policy should be uniform.

b. The comparative financial statement should be absolutely or relatively
changed.
2. COMMON SIZE ANALYSIS STATEMENTS:
A common size analysis statement is the statement of not only on company

but also of different companies and of financial statements prepared over a time
period. As the ratios or percentages and particular item, all the items of the statement
are prepared. The common size statement balance shows the time percentages of all
assets and liabilities.
3. FUND FLOW ANALYSIS:
The Fund Flow Statement is a statement which shows the movement of funds
and is a report of the financial operations of the business undertaking. It indicated
various means by which funds were obtained during a particular period and the ways
in which these funds were employed. In simple words, it is a statement of sources and
application of funds.
4. CASH FLOW ANALYSIS:
Cash flow exclude movements between items that constitute cash or

equivalents because these components are part of the cash management of a enterprise
rather than part of its operating, investing and financial activities. Cash management
includes the investment of excess cash in cash equivalents.
5. RATIO ANALYSIS:
Ratio analysis is a process of establishment an interpreting various ratios

quantitative relationship between figures and group of figures. It is with the help of
ratios that the financial statements can be analyses more clearly and decisions made
from such analysis.
6. TREND ANALYSIS:
The financial statement may be analyzed by computing trends of series of

information. This method determines the direction upwards or downwards and
involves the computation of the percentage of relative years that each statement item
bears to the same item in base.
7. TIME SERIES:
When the performance of a company is to be evaluated over a period of time,

it is known as time series analysis.
8. CROSS SECTION ANALYSIS:
When the ratio of one firms are compared with ratios of another firm in the same
industry at one point of time. It is known as cross section analysis.
9. DIVISIONAL PERFORMANCE:
It is necessary to measure the performance of every enterprise. The success of

any enterprise is to be assessed. It can be judged by the amount of profits, the
dividends paid to its shareholders, salaries paid off to staff, facilities provided to
employees etc….

COMPARATIVE FINANCIAL STATEMENT
INTRODUCTION
Comparative financial statements are statements of the financial position of a

business at different periods of time. They focus on the elements contained in it and
provide the necessary time perspective to it. In these statements figures for two or
more periods are placed side by side to facilitate comparison.
The comparison of two different periodical financial statements by putting

them on separate sides and finding out the changes with the respect of each item of
the statements and overall changes in absolute and relative changes should be
properly identified with the period.
a. The accounting policy should be uniform.
b. The comparative financial statement should be absolutely or relatively

changed.
It is the analysis where the performance of business is ascertain by comparing

percentage changes in each item or group of item for two statements of same
company or different companies. It has 2 types
1. Comparative balance sheet statement

2. Comparative income statement
 COMPARATIVE BALALNCE SHEET STATEMENTS
It is the analysis where percentage changes of each item or group of item

of 2 balance sheets of same company or different companies. In this the initial year is
taken as base to calculate percentage changes.
Comparative balance sheet is prepared foe comparing assets and liabilities

of two different periods for finding out any increase or decrease in the values of assets
and liabilities between two dates. While a balance sheet states the present position,

comparative balance sheet states the change in the present position over the previous
one.
 COMPARATIVE INCOME STATEMENTS
It is analysis where each item or groups of item of two or more income

statements are analyzed to ascertain the performance of business.
An income statement discloses the operational results (i.e., net profits or

net loss) of the business for a given period of time. A comparative income statement
will show the absolute figures for two or more periods, the absolute change from one
period to another. Absolute changes can also be expressed in terms of percentage.
Comparative balance sheet is interpreted with the help of following points.
 .WORKING CAPITAL CONDITION
The change in percentage of working capital shows the performance of

working capital in the business. If the change in working capital in the business is
move compare to previous year its position is strong and if working capital is less
compare to previous years, its position is weak.
 . LIQIUDITY POSITION
This position is measured with the help of changes in current assets. If the
currents assets are increased compare to previous year liquidity position is good and if
current assets decreased compare to previous year, the liquidity position is weak. But,
in case of stock liquidity position is good only when stock increased when there is
demand.
 .LONG TERM FINANCIAL POSITION
This position is measured with the help of changes in share capital, long
term loan and fixed assets. If the change in share capital and long-term loan is more
compare to increase in fixed assets, it shows good long term position. If the increase
in share capital, long term loan is less compare to increase in fixed assets, it gives
weak long term financial position.

 .PROFITABILITY POSITION
This can be measured with the help of changes in reserves and surplus.
The position is strong when the reserves and surplus are more compare to
previous year and the position is weak reserves and surplus are less compare
to previous year.

RESEARCH DESIGN
RESEARCH
Research is the systematic investigation into a phenomenon, research simply

means a search of facts and figures to questions and solution to a problem it is
organized inquiry. Research needs explanation to unsolved problems and clarifies the
facts to correct the missing facts.
RESEARCH DESIGN
According to miller, “A research design is defined, as the planned sequence of

the entire process involved in conducting a research study”.
TITLE OF THE STUDY
“A STUDY ON FINANCIAL ANALYSIS USING A TOOL OF

COMPARATIVE BALANCE SHEET AT APPLE AUTO SUZUKI MOTORS
PVT.LTD IN BANGALORE.
STATEMENT OF THE PROBLEM
The process of research, the first and foremost step happens to be that selecting
and properly defining the problem. The basic financial statement, that is, the balance
sheet and profit and loss account or income statement of business reveal the net effect
of the various transactions on the operational and financial position of the company.
The balance sheet gives a static view of the resources (liabilities) of a business and the
uses (assets) to which these resources have been put at a certain point of time. It does
not disclosure the cause for changes in the assets and liabilities between two different
points of view. The profit and loss account in a general way indicates the resources
provided by operations. But there are many transactions that take place in all
undertaking and which do not operate through profit and loss.
For an organization, movements of funds that inflow of funds and outflow of funds is
inevitable. The management has to exert control on movement of funds. Therefore,
there is a need for studying the movement of funds in the organization.

OBJECTIVES OF THE STUDY
The main objectives of the study are as follows.
1. To study and analyze the financial position of the company through

comparative balance sheet, statistical tools and techniques. So that the
performance of apple auto Suzuki motors can be known.
2. To study and analyze profitability position of the company by analysis of the
various factors influencing the profitability.
3. To provide reliable financial information about economic resources and
obligation of a business firm.
4. To provide other needed information about changes in such economic
resources and obligation
5. To disclosure to the extent possible, other information related to the financial
statements that is relevant to the needs of the users of these statements
6. To give suitable suggestions to improve the profitability, liquidity position and
solvency.
SCOPE OF THE STUDY
The study is conducted between the boundaries of the organization records of

a period of three financial years, which gives a wide scope of understanding and
functioning of the public sectors units. The main aim is to understand the depth about
the financial analysis of the firm.
 . The study covers all the components of balance sheet on about comparative
balance sheet.
 The study of financial analysis is limited to single organization and there is
comparison with another company.
 The study covers a period of time three financial years ranging from 2011-
2012, 2012-2013 and 2013-2014.

LIMITATIONS OF THE STUDY
 The study is mainly depending upon the secondary data .i.e. the final report of
the company for the period of three years only.
 The study included collection of data through interaction with officials and the
findings were based on the premises that the respondents have given correct
information.
 Constraint of duration for completing the project.
 Since financial data are confidential in nature, it is not possible to collect all
data.
 Study conducted based on availability of information.
 The analysis and interpretation of the concern is based on only past
performance and it cannot be compared with those of other concern.
RESEARCH METHODOLOGY
The research methodology includes collection of data from primary source and
secondary source. The data collection is one of the important aspects in the research
design purely because; it is way that how we can get answer to the research question.
DATA DETAILS
Data relating to assets and liabilities is required for the study i.e. about the
various balance sheets for analyzing various items.
SOURCE OF DATA
Data are facts figures and others relevant materials past and present, serving as
basic for study and analysis sources of data are classified into two:
 Primary data
 Secondary data

PRIMARY DATA
Primary data are original sources form which there searches directly collects the
data that have not been previously collected primary data are first hand information
collected through various methods such as observations, interviewing, mailing etc.
Opinions and suggestions from the finance personnel and other related department at
APPLE AUTO SUZUKI MOTORS.
SECONDARY DATA
The secondary data are those, which have been collected by someone else and
which have already been processed. Generally speaking secondary data are
information which has been previously collected by some organization to satisfy its
own need but it is being used by the department under reference for an entirely
different reasons.
 INTERNAL SOURCE:
 Profile
 Books of accounts
 Balance sheet
 Annual reports
 Company broachers
 Documents
EXTERNAL SOURCE
 Web sites
 Newspapers
 Magazines
RESEARCH INSTRUMENT
The instruments used for the study is comparative balance sheet for the three
years, some statistical tools such as Tables and Graphs. The required information for
the study is taken from Annual Reports of the company.

ABOUT INDUSTRY
HISTORY:
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented
the first automobile to run on roads. This automobile, in fact, was a self – powered,
three – wheeled, military tractor that made the use of a steam engine. The range of
the automobile, however, was very brief and at the most, it could only run at a stretch
for fifteen minutes. In addition, these automobile were not fit for the roads as the
steam engines made them very heavy and large, and required ample starting time.
Oliver Evans was the first to design a steam engine driven automobile in the U.S. a
Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832
and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert
Davidson were amongst the first to invent more applicable automobile, making use of
non – rechargeable electric batteries in 1842. Development of roads made travelling
comfortable and as a result, the short ranged electric battery driven automobile were
no more the best option for travelling over longer distances.
The Automobile Industry finally came of age with Henry Ford in 1914 for the
bulk production of cars. This lead to the development of the industry and it first
begun in the assemble lines of his car factory. The several methods adopted by ford,
made the new invention (that is, the car) popular amongst the rich as well as the
masses.
According the History of Automobile Industry US, dominated the automobile

markets around the globe with no notable competitors. However, after the end of the
Second World Was in 1945, the Automobile Industry of other technologically
advanced nations such as Japan and certain European nations gained momentum and
within a very short period, beginning in the early 1980s, the U.S. Automobile Industry
was flooded with foreign automobile companies, especially those of Japan and
Germany. By 1600s small
Steam – powered engine models was developed, but it took another century
before a full – sized engine – powered vehicle was created.

The actual horseless carriage was introduced in the year 1893 by brothers
Charles and Frank Duryea. It was the first internal – combustion motor car of
America, and it was followed by Henry Ford’s first experimental car that same year.
One of the highest – rated early luxury automobiles was the 1909 Rolls –
Royce Silver Ghost that featured a quiet 6 – cylinder engine, leather, interior, folding
windscreens and hood, and an aluminum body. It was usually driven by chauffeurs
and emphasis was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires,
pressed – steel wheels and four – wheel brakes. Graham Paigcylinder engine and an
aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear- hinged back
door that suited more to the needs of families. In 1930s, vehicles were less boxy and
more streamlined that their predecessors. The 1940s saw features like automatic
transmission, sealed-beam headlights, and tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-

Benz 300SL. It was built on compace and stylized lines, and was capable of 230 KHz
(144mph)
GROWTH:
The domestic automobile industry sales grew 12.8 per cent at 89, 10, 224 units
as against 78, 97,629 units in 2004-05.
The automotive industry crossed a landmark with total vehicle production of 10

million units.
The two-wheeler segment, the market grew by 13.6 per cent with 70, 56, 317 units
against 62, 09, 765 units in 2004-05.
Motorcycles had the upward march, 17.1 per cent in domestic market touching 58, 15,
417 units against 49, 64, 753 units in 2004-05.
Scooter segment grew by 1.5 per cent, fall at 9, 08, 159 units against 9, 22, 428 units
in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3, 50, 683 units against 3,
18, 430 units in 2004-05.
Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23
per cent growth in the year ended march 31, 2005.Light commercial vehicles sales
growth was 19.4 per cent at 1, 43,237 units against 1, 19, 924 units in 2004-05.Three
wheelers sales rose by 17 per cent at 3, 60, 187units against 3, 07, 862 units in 2004-
05.
FUTURE ASPECTS:
India is emerging as one of the world’s fastest growing passenger car markets
and second largest two wheeler manufacture. According to the International yearbook
of Industrial statistics 2008 released by United Nations Industrial Development
Organization (UNIDO), India ranks 12th in the list of the world’s top 15 automakers.
It is home to the largest two wheeler manufacturer and fifth largest commercial
vehicle manufacturer in the world. The industry is producing about 19 lakh passenger
vehicles, 4.5 lakh two wheelers and 5 lakh three wheelers per annum.
Indian Automobile Industry

Largest three wheeler market in the world
2nd largest two wheeler market in the world
4th largest passenger vehicle market in the world
4th largest tractor market in the world
5th largest commercial vehicle market in the world
In order to make India a power to reckon with in the automotive sector the
government launched the Automotive Mission Plan (AMP) 2006-2016. As per the
AMP, it is estimated that the total turnover of the automotive industry in India would
be in the order of USD 122 billion – USD 159 billion in 2016. It is expected that in
real terms, India would continue to enjoy its eminent position of being the largest
tractor and three-wheeler manufacturers in the world and the world’s second largest
two-wheeler manufacturer.
By 2016, India will emerge as the world’s seventh largest car producer (as
compared to the eleventh largest currently) and retain the fourth largest position in

world truck manufacturing sector. Further, by 2016, the automotive sector would
double its contribution to the country’s GDP from current levels of five per cent to 10
per cent. The Indian automotive industry consists of the following five segments:
FIGURE 1: INDIAN AUTOMOBILE INDUSTRY
The total two – wheeler sales of the Indian industry accounts for around 77%
of the total vehicles sold in India. With 26, 12,881 two wheelers already sold in India
in the quarter from Jun – Sep 2009, the Indian wheeler industry is poised for high
growth in the coming years. In terms of volume, about 6% of the two wheelers
manufactured are exported.
TYPES OF AUTOMOBILE INDUSTRY INDIA
BAJAJ:
Established in 1945, Bajaj Auto Ltd. was incorporated as a trading company.

Till1959, they imported three – wheelers from Italy and sold them in India. The
company got a production license in the year 1959 and fastened a technical
collaboration with Italian PIAGGIO in 1960. Bajaj Auto Ltd. is one among India’s
top ten companies in terms of market capitalization and among the top five in terms of
annual turnover. The company started producing scooters in the year 1961 and
following Three – Wheelers production in 1962. Its collaboration with piaggio
expired in 1971 and since then, their scooters and three – wheelers are being sold with
the brand name “BAJAJ”.
HERO HONDA:
Hero Honda Motors Ltd. is a result of the joint venture between India’s Hero
Group and Japanese Honda Motors Company in the year 1983. This joint venture has
not only created the world’s single largest two wheeler company but also one of the
most successful joint ventures worldwide.
Hero Honda is globally known of being the most fuel – efficient and the largest
CBZ selling Indian Motorcycle Company. This is a relationship so harmonious that
Hero Honda has managed to achieve indigenization of over 95 percent, a Honda
record worldwide.
KINETIC:
Established in the year 1970, Kinetic Engineering Ltd. is the reliable and trusted
manufacturer and exporter of 2 – wheelers. Born of the vision of the late Shri
H.K.Firodia, Kinetic Engineering Ltd. has produced useful, heart – winning products
for over two decades.
ROYAL ENFIELD:
Established in 1955, Royal Enfield was brand of the Enfield Cycle Company.
Royal Enfield is one of the oldest bikes on the road. The company is well known for
producing motorcycles, but they also produce bicycle, stationary engines lawnmowers
and rifle small parts for the Royal Small Arms Factory in Enfield. Royal Enfield
Motor Ltd. has it’s headquarter situated at Tiruvottiyur, Chennai Tamil Nadu, India.

SUZUKI:
SUZUKI motor is a leading and trusted two wheeler company began with the
vision of ACCESS 125. The founder is sundaram Clayton Group, the late T.S.
Srinivasan – ‘to design, develop and produce an affordable moped for the Indian
family’. This vision was realized in 1980.
PROSPECT OF AUTOMOBILE INDUSTRY
 It offers a realistic assessment of prospects for the automobile industries of India to

2010, charting the passenger car, commercial vehicle and components sectors.
 The report analysis of great depth the state of the passenger car and commercial
vehicle industries, and profile the region’s vehicle manufactures. The top 300
components manufacturing in future.
3.1 ORIGIN OF THE ORGANIZATION
SUZUKI MOTOR CORPORATION
In 1909, Michio Suzuki founded the Suzuki Loom Works in the small seacoast
village of Hamamatsu, Japan. Business boomed as Suzuki built weaving looms for
Japan’s giant silk industry. In 1929, Michio Suzuki invented a new type of weaving
machine, which was exported overseas.Suzuki fieldas many as 120 patents and utility
model rights. The company’s first 30 years focused on the development and
production of these exceptionally complex machines.
Despite the success of his looms, Suzuki realized his company had to diversify
and he began to look at other products. Based on consumer demand, he decided that
building a small car would be the most practical new venture. The project began in
1937, and within two years Suzuki had completed several compact prototype cars.
These, first Suzuki motor vehicles were powered by a then – innovative, liquid –
cooled, four – stroke, four – cylinder engine. It featured a cast aluminum crankcase

and gearbox and generated 13 horsepower (9.7 kW) from a displacement of less than
800cc.
With the onset of World War II, production plans for Suzuki’s new vehicles
were halted when the government declared civilian passenger cars a “non – essential
commodity”. At the conclusion of the war, Suzuki went back to producing looms.
Loom production was given a boost when the U.S government approved the shipping
of cotton to Japan. Suzuki’s fortunes brightened as orders began to increase from
domestic textile manufacturers. But the joy was short – lived as the cotton market
collapsed in 1951.
Faced with this colossal challenge, Suzuki’s thoughts went back to motor
vehicles. After the war, the Japanese had a great need for affordable, reliable personal
transportation. A number of firms began offering “clip – on” gas – powered engines
that could be attached to the typical bicycle. Suzuki’s first two – wheel ingenuity
came in the form of a motorized bicycle called, the “Power Free”. Designed to be
inexpensive and simple to build and maintain, the 1952 Power Free featured a 36 cc,
one horsepower, and two – stroke engine. An unprecedented feature was the double –
sprocket gear system, enabling the rider to either pedal with the engine assisting,
pedal without engine assist, or simply disconnect the pedals and run on engine power
alone. The system was so ingenious that the patent office of the new democratic
government granted Suzuki a financial subsidy to continue research in motorcycle
engineering and so was born Suzuki Motor Corporation.
3.2GROWTH
Suzuki Motorcycle
Suzuki is another member of the “Big Four” from Japan. It began

manufacturing motorcycles in 1952 and has become well known around the world. It
is off – road bikes and road racers have won world titles, and its street machines range
from the cruise Boulevard series to the legendary GSX – R series of sports bikes. It,
along with Honda, is unique in the company also builds automobiles.
 1909 Michio Suzuki founds the Suzuki Loom Company in Hamamatsu, Japan.
He builds industrial looms for the thriving Japanese silk industry.

 1937 To diversify activities, the company experiments with several interesting

small car prototypes, but none go into production because the Japanese
government declares civilian automobiles “non – essential commodities” at the
onset of WWII.
 1951 After the war, Suzuki (like Honda and others) begins making clip – on
motors for bicycles.
 1953 The Diamond Free is introduced and features double – sprocket wheel
mechanism and two – speed transmission.
 1955 The Colleda COX debuts, a 125cc bike equipped with a steel frame. It
features a 4 – stroke OHV single – cylinder engine with three – speed
transmission.
 1961 East German star Ernst Degner defects to the west while racing for MZ in
the Swedish Grand Prix. He takes MZ’s most valuable secret- knowledge of
Walter Kaaden’s expansion chamber designs – to Suzuki.
 1962 Using MZ’s technology, Suzuki wins the newly created 50cc class in the
World Championship. The company will win the class every year until 67, and
win the 125cc class twice in that period, too.
 1963 U.S. Suzuki Motor Corp. opens in Los Angeles.
 1965 The T20 is released (aka Super 6, X – 6, Hustler). This two– stroke, street
going Twin is one of the faster bikes in its class. The ‘6’ in its name(s) refers to
its six – speed gearbox.
 1968 The T500 ‘Titan’ is an air – cooled parallel – Twin two – stroke.
 1970 Joel Robert wins the 250cc World Motocross Championship for Suzuki.
This is the first year of a three – year streak.

 1971 The GT750 2 – stroke surprises people with its three – cylinder liquid cooled
engine. In North America, it’s nicknamed the Water Buffalo; in the UK they call
them Kettles. Although the bike is quite advanced in many ways and inspires a
line of smaller air – cooled triples (GT380 and GT550), it’s clear that pollution
control legislation will limit the use of two – strokes as street motorcycle. Even
while the GT750 was in development, Suzuki had signed a licensing deal with
NSU to develop a motorcycle with the Wankel (rotary) engine.
 1972 The Hustler 400, a street version of the TM400, is released. This bike
features a double – cradle frame and 2 stroke single – cylinder 396cc engine.
 1974 The RE5 is the first Japanese motorcycle with rotary engine. It cost a
fortune to develop and, while not bad, it’s a commercial disaster. After two years,
the company abandons the project, and three are rumors the tooling was dumped
into the sea so that Suzuki managers would never have to see it again.
 1975 The RM125, with an air – cooled 2 – stroke single – cylinder 123cc engine,
is a production motocrosser
 1976With the GS750, Suzuki finally builds a 4 – stroke, four – cylinder road bike.
 1978 The GS1000E becomes the flagship model of GS series – it’s Suzuki’s first
liter bike.
 1979 Wes Cooley wins the AMA Superbike Championship on the new GS. He’ll
repeat the feat in’ 80 before submitting to Eddie Lawson.
 1980 The GSX750E adopts Twin Swirl Combustion Chamber (TSCC) structure
and a DOHC engine upgraded to four valves. Also, a new Anti Nose Dive Fork
(ANDF) system is adopted for the front suspension.
 1981 German designer Hans A.Mith, styles the GSX1100s Katana. It boasts an
output of 111 hp at 8,500 rpm. Marco Lucchinelli wins the 500cc World
Championship for Suzuki.
 1982 Franco Uncini wins the 500cc World Championship.

 1983 The RG250 is Suzuki’s first ever race replica. This bike features the AL –
BOX, square aluminum frame, 16 – inch tire and Anti Nose Dive Forks (ANDF)
at the front.
 1985 The RG500 “Gamma” features the same square – Four cylinder layout as the
as the factory Grand Prix bikes. Other racy features are the square – tube
aluminum frame and the removable cassette – type transmission.
 1986 Although the rest of the world got the GSX – R750 a year earlier, the most
important new motorcycle in a decade finally arrives in the U.S. in 1986. Kevin
Cameron, reviewing the machine in Cycle World, rhetorically asks, “Where will
we go from here?”
The new GSX – R1100 covers1/4 mile in 10.3 seconds and boasts a top
speed of over 160mph. That’s where we go from here.
 1989 Jami James wins the AMA Superbike Championship of the GSX – R750.
 1990 The 779cc DR – BIG has the largest single – cylinder engine in living
memory.
 1991 The GSX – R750 switches from oil – cooling to water – cooling and gains
weight.
 1993 Kevin Schwantz wings the 500cc World Championship. “I’d rather not win
it this way,” he says, referring to the career - ending injury of his archrival Wayne
Rainey.
 1995 The much – loved 16 – valve, 1156cc air/oil – cooled Bandit 1200 appears
on the scene.
 1996 Suzuki calls the new GSX – R750 the ‘turning – point model’ thanks to its
twin – spar frame instead of the older double – cradle frame. The engine is also

redesigned and featured 3 – piece crankcases, chrome – plated cylinders and a side
– mount cam chain as well as Suzuki Ram Air Direct (SRAD) system.
 1997 The TL1000S is the first Suzuki sports bike with a V – Twin engine. It will
be followed a year later by a racier R version, with a dodgy rotary vane damping
system in the rear shock. Suzuki equipped the TL1000R with a steering damper,
but it was still prone to headshake and customers approached it with caution, if at
all.
 1999 Mat Mladin wins the AMA Superbike Championship, beginning a runoff
unprecedented dominance. Mladin will win five more times, and Suzuki will win
8 of the next 9 titles. With sport bikes getting more and more sharp edged, the
company is one of the first to recognize what might be called the ‘semi – sport’
market, as opposed to the super sport market. The SV650 features an aluminum –
alloy truss frame and liquid – cooled 900 V – Twin DOHC 4 – valve engine.
Suzuki calls the Hayabusa the ultimate aerodynamic sport bike. It’s
powered by a 1298cc liquid – cooled DOHC in – line 4 – cylinder engine
that becomes the darling of land – speed racers. The name means”
peregrine falcon” in Japanese.
 2001Based on the compact GSX – R750, the GSX – R1000 is powered by a liquid
– cooled DOHC 16 – valve 4 – cylinder 988cc engine, which features narrow –
angle valves and downdraft individual throttle – body fuel injection.
 2005Suzuki’s original 4 – stroke motocross, the RM – Z450, is equipped with a 4

– stroke 449cc engine, which features the Suzuki Advanced Sump System
(SASS). Troy Corser gives Suzuki its first and only (so far) World Superbike
Championship.
 2010The M109R, Suzuki’s flagship V – Twin cruiser, is powered by a 1783cc V –

Twin engine with 112mm bore and 90.5mm stroke. It has the largest
reciprocating pistons is any production passenger car or motorcycle.

3.3MISSION/VISION:
Our endeavor to see Customer is delighted”
3.4LOCATION OF THE UNIT AND ADVANTAGES:
The unit is at:

#615, 100 feet ring road,
Katriguppe, BSK 3rd stage,
Bangalore – 560 085.
This unit is centrally located in the heart of Bangalore city.
The location advantages of the unit are as follows:
1. Centrally located in the heart of the city.
2. Very good transportation facilities available for goods inward and outward.
3. The customer has quick access to this as it close to bus stand and railways stations.
4. The area has good transportation and communication system, connecting all parts.
And all major towns and industry centers all over the India.
5. Skilled labors are available in bulk quantity.
3.5 OBJECTIVES OF THE COMPANY:
1. To product of highest quality and value.
2. To invest in the technology to achieve technological excellence and competitive.
3. To develop employee’s mutual trust, respect and training.
4. Human resource development
5. Quality objective
3.6 STAFFING PATTERN OF THE UNIT:
Sr.No Designation Appointed strength

1 General Manager 1
2 Sales Manager 1
3 Service Manager 1
4 Spares Manager 1
5 Assistance Managers 3
6 Supervisors 30
7 Sales Mans 40
8 Mechanics 130
9 Helpers 139
10 Office boys 14
Total Strength 360

SUZUKI MOTORCYCLE:
Part of the Big four Japanese motorcycle manufactures, Suzuki has won racing
championships in every discipline of two wheel motorsports. Whether it’s Super
cross of Motor cross with its RM – Z450 and RM – Z250 motor cross bikes or either
the AMA or World Superbike road racing series with its line of ultra – high
performance GSX – R 600, GSX – R 1000 sport bikes, Team Suzuki knows how to
engineer a motorcycle that can win races on or off – road.
But building championship winning motorcycle wasn’t always what Suzuki

was known for. Originally Suzuki got its start in Japan’s textile industry in 1909. It
wasn’t until after World War II that Suzuki began to produce engines for use on
bicycles as the need for affordable transportation emerged in Japan. Soon after
Suzuki would go on to make its first full motorcycle.
In the decades following its entry in to the motorcycle market, Suzuki pushed
into other transportation markets including the auto industry with its compact cars,
vans and trucks. The marine engine industry was up next and still today, Suzuki has a
thriving automobile and marine business worldwide.
Racing has always been a strong point of Suzuki’s history. Throughout the
1960s and 70s, Suzuki pushed hard in the racing scene both on and off – road. Riders
like Joel Robert, Roger DeCoster, Tony DiStefano, and Danny LaPorte ruled popular
off – road series like the Trans – AMA series, and AMA 250cc and AMA 500cc
championships.The Suzuki Hayabusa is likely one of Suzuki’s mot well known
models.
Suzuki’s combined experience in both the auto industry as well as the

motorcycle industry allowed them to produce the world’s first four – wheeled ATV,
the Quad Runner 125 which would be a precursor to its popular line of sport ATVs
including the Quad Sport Z250, Quad Sport Z400 and Quad Racer R450. Suzuki also
makes a versatile line of King Quad utility ATVs with its top – of – the – line King
Quad 750
AXi 4x4 Power Steering. Today, Suzuki continues to innovate with models such as
its futuristic B – King and its Hayabusa 1300, which essentially started the hyper

sports bike revolution in 1999. Other exciting models include the to – be – released
Gladius and GSR 600.
Yet Suzuki continues to produce classic like the Bandit 1250 and the versatile
DR650SE dual – sport bike. Additionally, Suzuki produces a wide range of cruisers
including the Marauder and Boulevard models. And for those who are looking for
something more simple to ride Suzuki offers a comprehensive line of Bergman
scooters in 125cc engine size all the way up to a 650cc.
3.7 VISION AND QUALITY POLICY OF THE COMPANY:
 Every Unit produced by the Company, will totally conform to the quality systems
& procedures lay down by the company.
 Every Unit produced by the Company, will be in accordance with the process,
procedures & controls as laid down by the company.
 Every input and component that goes into the product produce, will conform to all
standards laid down by the Co Every manual, document, certificated, approvals,
will be made to conform to the highest quality standards.
 Every human resource available in the Company, while they are directly or
indirectly connected with the production of every unit will adhere to all quality
system, controls, &procedure.
 Every Unit produced by the Company, will carry the Company’s commitment to
quality & customer satisfaction.
 The company will make constant & continuous endeavors to upgrade & enhance
its procedures, systems & controls to keep up to the latest Quality Standards n
vogue at any given point in time.

3.8 ORGANIZATIONAL STRUCTURE OF APPLE AUTO AGENCY

PRIVATE LIMITED
SUZUKI MOTORS CORPORATION FINANCE DEPARTMENT


2014 2015 Delta

JPY (in Millions) % JPY (in Millions) %
Automobile 2,615,660 89% 2,701,940 89.6% +3.19%
Motorcycles 266,602 9.1% 250,485 8.3% -6.43%
Specialized Equipment 56,046 1.9% 63,033 2.1% +11.08%
Adjustment Amount - - - - -
SALES PER BUSINESSES

2014 2015
JPY (in JPY (in Delta
% %
Millions) Millions)
Japan 1,309,380 44.6% 1,317,660 43.7% +0.63%
Asia 1,118,170 38.1% 1,233,490 40.9% +9.35%
Europe 360,465 12.3% 306,156 10.2% -17.74%
Other Geographic150,296 5.1% 158,151 5.2% +4.97%
Location
Elimination - - - - -
India - - - - -
Indonesia - - - - -
SALES PER REGIONS
MANAGERS
Name Age Since Title

Osamu Suzuki 86 1958 Chairman & Chief Executive Officer

Toshihiro Suzuki 57 1994 President, COO & Representative Director
Taisuke Toyoda - - General Manager-Finance & IR Contact
Osamu Honda 67 1973 Representative Director, VP & Head-Technology
Ichizo Aoyama - - GM-Information Technology & Development
Eiji Mochizuki 61 1984 Director & Senior Managing Executive Officer
Yasuhito Harayama 60 2009 Vice Chairman
Takashi Iwatsuki 59 1980 Director & Managing Executive Officer
Masakazu Iguchi 82 2007 Independent Director
Sakutaro Tanino 80 2012 Independent Director
SHARE HOLDERS
Name Equities %
Suzuki Motor Corp. 119,794,955 21.4%
Tokio Marine Holdings, Inc. 17,961,000 3.20%
Capital Research & Management Co. (World Investors) 17,654,200 3.15%
Mitsubishi UFJ Financial Group, Inc. 16,000,000 2.85%
The Shizuoka Bank, Ltd. 14,500,000 2.58%
Resona Holdings, Inc. 13,000,000 2.32%
Nomura Asset Management Co., Ltd. 10,061,074 1.79%
Sompo Japan Nipponkoa Holdings, Inc. 7,761,000 1.38%
Nippon Steel & Sumitomo Metal Corp. 7,759,000 1.38%
The Vanguard Group, Inc. 7,084,086 1.26%
HOLDINGS

Name Equities % Valuation

Maruti Suzuki India Ltd (MRTI) 169,788,44 56.2% 11,658,102,157
0 USD
Mitsubishi Heavy Industries Ltd (7011) 12,111,000 0.36% 61,900,895 USD
Asahi Glass Co Ltd (5201) 4,620,000 0.39% 27,132,382 USD
Denso Corp (6902) 540,851 0.061 25,765,882 USD
%
Daido Steel Co., Ltd. (5471) 4,462,200 1.03% 18,821,738 USD
Mitsui Chemicals, Inc. (4183) 3,765,000 0.37% 15,667,144 USD
Stanley Electric Co Ltd (6923) 518,364 0.29% 11,457,996 USD
Sanoh Industrial Co., Ltd. (6584) 1,600,000 4.31% 9,837,776 USD
Yushiro Chemical Industry Co., Ltd. 549,000 3.95% 6,555,225 USD
(5013)
MIKUNI CORPORATION (7247) 1,007,000 2.96% 3,594,094 USD
SIGNIFICANT OF ACCOUNTING POLICIES MAINTAINED BY

AGENCY
 System of accounting:-
The company follows Accrual system of Accounting.
 Revenue recognition:-
Revenue from trading operation is accounted as and when the Trading services
are rendered. Other Income is recognized when there is virtue certainty of
their realization. Since there no business activity no revenue is accounted
upon.
 Fixed assets:-
Fixed assets are stated at cost of acquisition less accumulated depreciation.
Direct costs are capitalized till the assets are ready to be put to use.
 Depreciation :-
Depreciation is charged on written down Value Method at the rates prescribed
in Schedule XIV of the companies Act, 1956 on pro-rata basis.
 Impairment of Assets:-

The carrying amount is reviewed at each balance sheet date and if there is any
indicates of impairment of assets based on internal or external factors. An
impairment loss will be recognized wherever the carrying amount of assets
exceeds its recoverable amount.
 Retirement benefits:-
i. The company contributes to the provident fund and ESI.
ii. The gratuity and leave encashment are accounted on cash basis.
 Miscellaneous expenditure:-
Miscellaneous expenditure is written off over a period of 5 years, once the
company starts commercial operations.
 Taxation:-
The company determines the amount of tax payable in respect of taxable
income for the period.

TABLE-4.1
TABLE SHOWING THE COMPARATIVE VALUE OF SHARE

CAPITAL
INREASE(+) OR
INCREASE OR
YEARS SHARE CAPITAL DECREASE(-)
DECREASE (%)
(RS)
2012-2013 9,50,000-9,50,000 0 0
2013-2014 9,50,000-9,50,000 0 0
2014-2015 9,50,000-9,50,000 0 0
ANALYSIS:
In this table showing the shareholders no changes from one year to another makes all
the shareholders the investment was retain for a long period so there is no changes at
all.

TABLE-4.2
TABLE SHOWING THE COMPARATIVE VALUE IN RESERVE

AND SURPLUS
INCREASE(+)
RESERVES & INCREASE OR
YEARS OR DECREASE
SURPLUS DECREASE (%)
(-) (RS)
2012-2013 52,03,202-89,36,945 37,33,743 71.75%
2013-2014 89,36,945-1,27,33,821 37,96,876 42.48%
2014-2015 1,27,33,821-1,49,83,730 22,49,909 17.66%
ANALYSIS:
The above table shows about the changes in the reserves and surplus which have
changes from one year to another they are as follows in the year 2012-2013
37, 33,743 (71.75%) in the year 2013-2014 has 37, 96,876 (42.48%) and it increase to
22, 49,909 (17.66%) in the year 2014-2015 has the three is analysis there is continues
increase in the reserves and surplus.

GRAPH-4.2
THE GRAPH SHOWING IN THE COMPARATIVE VALUE IN

RESERVES AND SURPLUS
RESERVES & SURPLUS

4000000 3733743 3796876
3500000
3000000
2500000 2249909
AMOUNT
2000000
1500000
1000000
500000
0
2012-2013 2013-2014 2014-2015
YEARS
Increase/ Decrease
INTERPRETATION:
The above graph shows that the reserves and surplus has been varying from year
to year. This shows the company has selling goods may be reducing respectively.

TABLE-4.3
TABLE SHOWING THE COMPARATIVE VALUE OF LONG

TERM BORROWINGS
INCREASE (+) INCREASE OR

LONG TERM
YEARS OR DECREASE DECREASE
BORROWINGS
(-) (RS) (%)
3,76,53,954-
2012-2013 25,46,139 6.76%
4,02,00,093
4,02,00,093-
2013-2014 -27,64,198 -6.87%
3,74,35,895
3,74,35,895-
2014-2015 2,76,01,758 73.73%
6,50,37,653
ANALYSIS:
The above table showing changes from long term borrowing were as 25,46,139
(6.76%) as 2012-2013 , -27,64,198(-6.87%) in the year 2013-2014 and
2,76,01,758(73.73%) 2014-2015 as the increase in the first year and decreases in the
second year and as well increase in the third year so we can see proper management
of activity.

GRAPH-4.3
TABLE SHOWING THE COMPARATIVE VALUE OF LONG

TERM BORROWINGS
LONG TERM BORROWING

30000000 27601758
25000000
20000000
AMOUNT
15000000
10000000
5000000 2546139
0
2012-2013 2013-2014 2014-2015
-5000000 -2764198
YEARS
Increase/ Decrease2
INTERPRETATION:
The above graph shows that the long term borrowing there is variation in
long term borrowing from year to year. The company has been borrows the capital
from outside in form of long term borrowing to meet day to day activities.
TABLE-4.4

TABLE SHOWING THE COMPARATIVE VALUE OF

DEFERRED TAX LIABILITIES
INCREASE (+)
DEFERRED TAX INCREASE OR
YEARS OR DECREASE
LIABILITY DECREASE (%)
(-) (RS)
2012-2013 6,179-73,280 67,101 1085.95%
-73,280
2013-2014 73,280-0 -100%
2014-2015 0-0 0 0
ANALYSIS:
The above table shows the value changes of deferred tax from one year to another on
the basis of composition in the year 2012-2013 there is 67101(1085.95%) value,
2013-2014 there we can see -732809-100%) and the value in 2014-2015 has 0 (0%).
GRAPH-4.4

GRAPH SHOWING THE COMPARATIVE VALUE OF

DEFERRED TAX LIABILITIES
DEFERRED TAX LIABILITY

80000
67101
60000
40000
20000
0
AMOUNT
0
2012-2013 2013-2014 2014-2015
-20000
-40000
-60000
-80000 -73280
-100000
Increase/ Decrease
YEARS
INTERPRETATION:
The above graph shows that the deferred tax liability has been written off
gradually as per the rules and written decrease to zero in the year 2014.

TABLE-4.5
TABLE SHOWING THE COMPARATIVE VALUE OF SHORT

TERM BORROWINGS
INCREASE (+)
SHORT TERM INCREASE OR
YEARS OR DECREASE
BORROWINGS DECREASE (%)
(-) (RS)
2012-2013 24,57,522-44,87,106 20,29,584 82.58%
2013-2014 44,87,106-36,08,266 -8,78,840 -19.58%
2014-2015 36,08,266-51,17,066 15,08,800 41.81%
ANALYSIS:
The above table shows the short term borrowing in the year 2012-2013 the value is
20, 29,584 (82.58%), 2013-2014 the value is -8, 78,840 (-19.58%)and in the year
2014-2015 as increase in value is 15,08,800 (41.81%) so in the last there we can see
an inability to maintain the short term borrowings.

GRAPH-4.5
GRAPH SHOWING THE COMPARATIVE VALUE OF SHORT TERM

BORROWINGS
SHORT TERM BORROWINGS
2500000
2029584
2000000
1508800
1500000
1000000
AMOUNT
500000
0
2012-2013 2013-2014 2014-2015
-500000
-1000000 -878840
-1500000
Increase/ Decrease
YEARS
+
INTERPRETATION:
The above graph shows that the company reduced its short term borrowings in the
year 2013-2014 and again it has been increased by 41.81%. It shows the companies’
short term borrowings are varying.

TABLE-4.6
TABLE SHOWING COMPARATIVE VALUE OF TRADE

PAYABLES
INCREASE (+)
INCREASE OR
YEARS TRADE PAYABLES OR DECREASE
DECREASE (%)
(-) (RS)
2012-2013 1,02,19,246-1,06,52,220 4,32,974 4.23%
2013-2014 1,06,52,220-1,58,89,366 52,37,146 49.16%
2014-2015 1,58,89,366-2,27,31,264 68,41,898 43.05%
ANALYSIS:
The above table show that the trade payables changes in the year 2012-2013 there we
can seen that 4, 32,974 (4.23%), in the year 2013-2014 increase of 52, 37,146
(49.16%) and 68, 41,898 (43.055) in the year 2014-2015.

GRAPH-4.6
THE GRAPH SHOWING THE COMPARATIVE VALUE OF

TRADE PAYABLES
TRADE PAYABLES
8000000
7000000 6841898
6000000
5237146
5000000
AMOUNT
4000000
3000000
2000000
1000000
432974
0
2012-2013 2013-2014 2014-2015
YEARS
Increase / Decrease
INTERPETATION:
The above graph shows that the companies’ trade payables are continuously
increasing and it shows that the company prefers more credit transactions.

TABLE-4.7
TABLE SHOWING COMPARATIVE VALUE OF OTHER

CURRENT LIABILITIES
INCREASE (+)
OTHER CURRENT INCREASE OR
YEARS OR DECREASE
LIABILITIES DECREASE (%)
(-) (RS)
2012-2013 15,24,690-72,85,967 57,61,277 377.86%
2013-2014 72,85,967-59,27,118 -13,58,849 -18.65%
2014-2015 59,27,118-52,18,955 -7,08,163 -11.94%
ANALYSIS:
The above table shows that the others current liabilities which are there in business in
the year 2012-2013 are 57, 16,277 (377.86%) and in 2013-2014 is -13, 58,849 (-
18.65%) are decreased and 2014-2015 is -7, 08,163 (-11.94%) as we can imbalanced
maintenance in the year 2012-13, 2013-14, and 2014-2015.

GRAPH-4.7

OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES

7000000
6000000 5761277
5000000
4000000
AMOUNT
3000000
2000000
1000000
0
2012-2013 2013-2014 2014-2015
-1000000 -708163
-1358849
-2000000
YEARS
Increase / Decrease
INTERPRETATION:
The above graph shows that the changes in other current liability. With the
graph we can interpret that the company is gradually decreasing in their liability.

TABLE-4.8
TABLE SHOWING THE COMPARATIVE VALUE OF SHORT

TERM PROVISIONS
INCREASE (+)
SHORT TERM INCREASE OR
YEARS OR DECREASE
PROVISIONS DECREASE (%)
(-) (RS)
2012-2013 - 29,04,216 -63.01%

46,08,799-17,04,583
2013-2014 1704583-19,79,761 2,75,178 16.14%
2014-2015 19,79,761-17,96,034 -1,83,727 -9.28%
ANALYSIS:
The above table shows that the value of short term provisions made by the business
has been shown 2012-2013 as -29, 04,216 (-63.01%), 2013-2014 has been increase in
short term provisions to 2,75,178 (16.14%) and in the year 2014-2015 it has been
decrease in the year 2014-2015 is -1,83,727 (-9.28%).

GRAPH-4.8

SHORT TERM PROVISIONS
SHORT TERM PROVISIONS
500000 275178
0
2012-2013 2013-2014 2014-2015
-183727
-500000
-1000000
AMOUNT
-1500000
-2000000
-2500000
-3000000 -2904216
-3500000
YEARS
Increase/Decrease
INTERPRETATION:
The above graph that the companies’ short term provisions are varying year to ear
according to the future uncertainties.

TABLE-4.9
TABLE SHOWING COMPARATIVE VALUE OF FIXED ASSETS
INCREASE (+)
INCREASE OR
YEARS FIXED ASSETS OR DECREASE
DECREASE (%)
(-)(RS)
2012-2013 43,39,546-1,04,02,907 60,63,361 139.72%
2013-2014 1,04,02,907-83,93,291 20,09,616 19.31%
2014-2015 83,93,291-46,31,462 -37,61,829 -44.81%
ANALYSIS:
The above table shows the position of fixed assets in the business they are like 2012-
2013 it has increase to 60, 62,361 (139.72%), 2013-2014 has 20, 09,616 (19.31%)
and -3761829 (-44.815) has reduced compare from year to year.

GRAPH-4.9

FIXED ASSETS
FIXED ASSETS
8000000
6063361
6000000
4000000
AMOUNT
2009616
2000000
0
2012-2013 2013-2014 2014-2015
-2000000
-4000000 -3761829
-6000000
Years
Increase/Decrease
INTERPRETATION:
The above graph shows the comparison of fixed assets from year to year. With the
help of graph we can interpret that the company reducing its fixed assets from year to
year through dis investment.

TABLE-4.10
TABLE SHOWING COMPARATIVE VALUE OF DEFERRED

TAX ASSETS
INCREASE (+)
DEFERRED OR INCREASE OR
YEARS
TAX ASSETS DECREASE(-) DECREASE (%)
(RS)
2012-2013 0-0 0 -
2013-2014 0-1,22,327 1,22,327 0
2014-2015 1,22,327-9,87,160 8,64,833 706.98%
ANALYSIS:
The above table shows that the deferred tax assets was comes expenses it incurred to
assets they are comes only in 2013-2014 they are as 122327 (0%) and 2014-2015 is 8,
64,833 (706.98%). Here we can see more changes of deferred tax assets in 2014-
2015.

GRAPH-4.10

DEFERRED TAX ASSETS
DEFERRED TAX ASSETS

1000000
900000 864833
800000
700000
600000
AMOUNT
500000
400000
300000
200000
122327
100000
0
0
2012-2013 2013-2014 2014-2015
Increase/ Decrease
YEARS
INTERPRETATION:
The above graph shows that the deferred tax assets were started from 2013-14
onwards. It shows that the company paying more tax advance to the income tax
department.

TABLE-4.11
TABLE SHOWING COMPARATIVE VALUE OF INVENTORIES
INCREASE(+)
OR INCREASE OR
YEARS INVENTORIES
DECREASE(-) DECREASE (%)
(RS)
2012-2013 1,52,53,011-2,36,56,151 84,03,140 55.09%
2013-2014 2,36,56,151-2,90,18,631 53,62,480 22.66%
2014-2015 2,90,18,631-2,86,36,932 -3,81,699 -1.31%
ANALYSIS:
The above table shows the value inventories which are not provide quick cash to
business but which provides the cash for solving the uncertainties they have gradually
decrease it the year 2012-2013 it is 84,03,140(55.09%), 2013-2014 it is show
53,62,480 (22.66%) and in the year 2014-2015 it is -3,81,699 (-1.31%).

GRAPH-4.11
THE GRAPH SHOWING COMPARATIVE VALUE OF

INVENTORIES
INVENTORIES
9000000 8403140
8000000
7000000
6000000 5369480
5000000
AMOUNT
4000000
3000000
2000000
1000000
0
2012-2013 2013-2014 2014-2015
-1000000 -381699
YEARS
Increase/ Decrease
INTERPRETAION:
The above graph shows that the inventories we can interpret that the inventory
values have been gradually decreasing year after year. This shows the company is
selling more raw materials than keeping stock.

TABLE-4.12
TABLE SHOWING COMPARATIVE VALUE OF TRADE

RECEIVABLES
INCREASE (+)
TRADE OR INCREASE OR
YEARS
RECEIVABLES DECREASE(-) DECREASE (%)
(RS)
2012-2013 13,59,865-24,19,233 10,59,368 77.90%
2013-2014 24,19,233-28,49,044 4,29,811 17.76%
2014-2015 28,49,044-36,74,449 8,25,405 28.97%
ANALYSIS:
The above table shows that the trade receivable in the business which means debtors
they are as follows 2012-2013 it has 10,59,368 (77.90%), it reduces in the value in the
year 2013-2014 to 4,29,811 (17.76%) it means the burden of credit was reduced and
it also increase in the year 2014-2015 to 8,25,405(28.97%) it also reduces the burden.

GRAPH-4.12

TRADE RECEIVABLES
TRADE RECEIVABLES
1200000
1059368
1000000
825405
800000
AMOUNT
600000
429811
400000
200000
0
2012-2013 2013-2014 2014-2015
YEARS
Increase / Decrease
INTERPRETATION:
From the above graph we can interpret that the trade receivables are no
constant year after year. It is fluctuating and in the year 2014-2015 the trade
receivables have been increased. This shows that the company is selling goods for
credit and this will affect the liquidity position of the company.

TABLE-4.13
TABLE SHOWING COMPARATIVE VALUE OF CASH AND

CASH EQUIVALENTS
INCREASE (+)
CASH & CASH INCREASE OR
YEARS OR DECREASE(-)
EQUIVALENTS DECREASE (%)
(RS)
2012-2013 51,45,673-25,75,757 -25,69,916 -49.94%
2013-2014 2,57,57,57-12,70,704 -13,05,053 -50.66%
2014-2015 12,70,704-28,21,798 15,51,094 122.06%
ANALYSIS:
The above table shows the cash and bank balances which provide immediate problem
solution with cash settlements they are in the year 2012-2013 -25,69,916 (-49.94%),
in the year 2013-2014 it was -13,05,053 (-50.66%) and in the year 2014-2015 it was
15,51,094 (122.06%).

GRAPH-4.13

CASH AND CASH EQUIVALENTS
CASH & CASH EQUIVALENTS

2000000
1551094
1500000
1000000
500000
AMOUNT
0
2012-2013 2013-2014 2014-2015
-500000
-1000000
-1500000 -1305053
-2000000
-2500000
-2569916
-3000000
Increase/ Decrease
YEARS
INTERPRETATION:
The above graph shows the cash and cash equivalents are increased. This
shows the company reduced cash in the company for the year 2012-13 and 2013-14. It
shows that the company making payments and reducing its liquidity.

TABLE-4.14
TABLE SHOWING COMPARATIVE VALUE OF SHORT TERM

LOANS AND ADVANCES
INCREASE (+)
SHORT TERM
OR INCREASE OR
YEARS LOANS &
DECREASE(-) DECREASE (%)
ADVANCES
(RS)
2012-2013 6,85,135-11,26,220 4,41,085 64.37%
2013-2014 11,26,220-22,86,708 11,60,488 103.04%
2014-2015 22,86,708-3,66,45,098 3,43,58,390 1502.52%
ANALYSIS:
The above table shows the changes in the loans and advances from one year to
another which shows as follows 2012-2013 is 4,41,085 (64.37%), 2013-2014 as
11,60,488 (103.04%) and 3,43,58,390 (1502.52%) in the year 2014-2015 has an
fluctuations been shown in the above table.

GRAPH-4.14

SHORT TERMS LOANS AND ADVANCES
SHORT TERM LOANS & ADVANCES
40000000
35000000 34358390
30000000
25000000
AMOUNT
20000000
15000000
10000000
5000000
441085 1160488
0
2012-2013 2013-2014 2014-2015
YEARS
Increase/ Decrease
INTERPRETATION:
The above graph shows from the year 2012-2015 and there is drastic
increase in the year 2014-2015. This shows the company has provided more loans and
advances to the customers other than employees.

TABLE-4.15
TABLE SHOWING COMPARATIVE VALUE OF OTHER

CURRENT ASSETS
INCREASE (+)
OTHER CURRENT INCREASE OR
YEARS OR DECREASE
ASSETS DECREASE (%)
(-) (RS)
2012-2013 5,76,520-2,68,49,785 2,62,73,265 4557.21%
2013-2014 2,68,49,785-2,73,45,428 4,95,643 1.84%
2014-2015 2,73,45,428-3,00,50,822 27,05,394 9.89%
ANALYSIS:
The table shows the changes in the other current assets in the business from one year
to another they are as follows 2012-2013 is as 2, 62, 73,265 (4557.21%) 2013-2014
are 4, 95,643 (1.84%) and in the year 2014-2015 are increased to 27,05,394 (9.89%) .

GRAPH 4.15

OTHER CURRENT ASSETS
OTHER CURRENT ASSETS

30000000
26273265
25000000
20000000
AMOUNT
15000000
10000000
5000000
2705394
495643
0
2012-2013 2013-2014 2014-2015
Increase/ Decrease
YEARS
INTERPRETATION:
From above graph we can interpret that the other current assets are continuously
increasing and it shows that the liquidity position has been increasing.

TABLE-4.16
THE TABLE SHOWING THE COMPARATIVE VALUES OF

LONG TERM LOANS AND ADVANCES
YEARS LONG TERM LOANS INCREASE (+) INCREASE OR

& ADVANCES OR DECREASE DECREASE
(-) (RS) (%)
2012-2013 3,74,88,143-9484,441 -2,80,03,702 -74.70%
2013-2014 94,84,441-94,62,395 - 22,046 -0.23%
2014-2015 94,62,395-1,06,10,981 11,48,586 12.13%
ANALYSIS:
The above table shows there we can see -2,80,03,702 (-74.70%) the year 2012-2013,
-22,046 (-0.23%) in the year 2013-2014 and 11,48,586 (12.13%) in the year 2014-
2015 so we can say there is lot of fluctuations in long term loans and advances.

GRAPH 4.16
THE GRAPH SHOWING THE COMPARATIVE VALUES OF

LONG TERM LOANS AND ADVANCES
LOND TERM LOANS & ADVANCES

5000000
0
2012-2013 2013-2014 2014-2015
-5000000
-10000000
Amount
-15000000
-20000000
-25000000
-30000000
Increase / Decrease
Years
INTERPRETATION:
The above graph shows that the long term loan and advances are increasing slightly. It
shows that the company providing long term loans and advances to the customers.

CURRENT FINANCIAL POSITION
TABLE 4.17: Statement showing the changes in working capital & percentage in the
current assets and current liabilities 2013-2014 compare to 2012-2013.
INCREASE OR INCREASE OR
PARTICULAR 2012-2013 2013-2014 DECREASE DECREASE
(AMOUNT) (%)
Current assets
2,36,56,15
Inventories 2,90,18,631 53,62,480 22.66
1
Sundry debtors 24,19,233 28,49,044 4,29,811 17.76
Cash and bank
25,75,757 12,70,704 -13,05,053 -50.66
balance
Short term loans
11,26,220 22,86,708 11,60,488 103.04
and advances
Other current 2,68,49,78
2,73,45,428 4,95,643 1.84
assets 5
Total of current 5,66,27,14
6,27,70,515 61,43,369 10.84
assets(A) 6
Current liabilities
Short term
44,87,106 36,08,266 -8,78,840 -19.58
borrowing
1,06,52,21
Sundry creditors 1,58,89,366 52,37,147 49.16
9
Other current
72,85,967 59,27,118 -13,58,849 -18.65
liabilities
Short term
17,04,583 19,79,761 2,75,178 16.14
provisions
Total of current 2,41,29,87
2,74,04,511 32,74,636 13.57
liabilities(B) 5
Working capital 3,24,97,27
3,53,66,004 28,68,733 8.82
(A-B) 1

TABLE 4.18: Statement showing the changes in working capital and percentage
changes in current assets and current liabilities 2012-2013 as compare to 2014-2015.
INCREASE INCREASE
OR OR
PARTICULAR 2012-2013 2014-2015
DECREASE DECREASE
(AMOUNT) %
Current assets
Inventories 2,36,56,151 2,86,36,932 49,80,781 21.05
Sundry debtors 24,19,233 36,74,449 12,55,216 51.88
Cash and bank
25,75,757 28,21,798 2,46,041 9.55
balance
Short term loans
11,26,220 3,66,45,098 3,55,18,878 3153.81
and advances
Other current
2,68,49,785 3,00,50,822 32,01,037 11.92
assets
Total of current
5,66,27,146 10,18,29,099 4,52,01,953
assets(A) 79.82
Current liabilities
Short term
44,87,106 51,17,066 6,29,960 14.03
borrowing
Sundry creditors 1,06,52,219 2,27,31,264 1,20,79,045 113.39
Other current
72,85,967 52,18,955 20,67,012 28.36
liabilities
Short term
17,04,583 17,96,034 91,451 5.36
provisions
Total of current
2,41,29,875 3,48,63,319 1,07,33,444 44.48
liabilities(B)
Working capital
3,24,97,271 6,69,65,780 3,44,68,509 106.06
(A-B)
ANALYSIS:
 Table 4.16 &4.17 are showing there is 22.671% increase in current assets in the
year 2013-2014 and 172.675% increase in the year 2014-2015 as compared to
2012-2013.

 A total current liability of the year 2013-2014 has been increased by 45.358%
and 65.085% in the year 2014-2015 as compared to 2012-2013.
 The working capital of the company has been increased by 37.48% in the year
2013-2014 and -422.836% in the year 2014-2015 as compared to the year 2012-
2013.
INTERPRETATION:
The company’s current financial position(short term) has been improved in the years
2013-2014 but there automatically decrease in the year 2014-2015 which shows there
is increase in liability more than the current assets percentage.
LIQUIDITY POSITION:
TABLE 4.19: Statement showing the change of liquidity and percentage changes in
the liquid assets and current liabilities 2013-2014 as compared to 2012-2013.

PARTICULARS 2012-2013 2013-2014 INCREASE INCREASE

(OR) (OR)
DECREASE DECREASE
AMOUNT %
1. liquid
assets 24,19,233 28,49,044 4,29,811 17.76
a) sundry debtors 25,75,757 12,70,704 1305053 -50.66
b) cash and bank 11,26,220 22,86,708 11,60,488 103.04
c) Short term
loans and
advances 2,68,49,785 2,73,45,428 4,95,643 1.84
d) Other current
assets
total liquid 3,29,70,995 3,37,51,884 7,80,889 2.36
assets(A)
2. Current
liabilities
a) Short term 44,87,106 36,08,266 878840 19.58
borrowing
b) Sundry creditors 1,06,52,220 1,58,89,366 52,37,146 49.16
c) Other current 72,85,967 59,27,118 -13,58,849 -18.65
liabilities
d) Short term 17,04,583 19,79,761 275178 16.14
provisions
total current 2,41,29,876 2,74,04,511 32,74,635 13.57
liabilities(B)
net liquid assets 88,41,119 63,47,373 24,93,746 28.20
(A-B)
TABLE 4.20: Statement showing the changes of liquidity and percentage changes in
the liquid assets and current liabilities 2014-2015 compare to 2013-2014

(OR) OR
DECREASE DECREASE
AMOUNT %
A. liquid assets
1.sundry debtors 24,19,233 36,74,449 12,55,216
2.cash and bank 25,75,757 28,21,798 2,46,041 51.88
3.Short term loans 11,26,220 3,66,45,098 3,55,18,878 9.55
and advances 3153.81
4.Other current 2,68,49,785 3,00,50,822 32,01,037 11.92
assets
total liquid asset
3,29,70,995 7,31,92,167 4,02,21,172 121.98
(A)
B)Current
44,87,106
liabilities Short 51,17,066 6,29,960 14.03
term borrowing
1,06,52,220
2.Sundry creditors 2,27,31,264 1,20,79,044 113.39
3.Other current
72,85,967
liabilities 52,18,955 -20,67,012 28.36
4.Short term
17,04,583
provisions 17,96,034 91,451 5.36
total current
2,41,29,876 3,48,63,319 1,07,33,443 44.48
liabilities (B)
net liquid asset
88,41,119 3,83,28,848 2,94,87,729 333.52
(A-B)
ANALYSIS:
 The table 4.18 & 4.19 are showing there is 15.245 % has been increased in the
liquid asset in the year 2013-2014 and 334.544% increase in the liquid asset in the
year 2014-2015 has been compared with the year 2012-2013.

 45.358% has been increased in total current liabilities of the year 2013-2014 and
65.085% increase in total current liabilities in the year 2014-2015 with comparing
to 2012-2013.
 There is showing the -98.649% has been decreased value of net liquid assets in the
year 2013-2014 it may increase to in negatively of net liquid asset to -171.746% in
the year 2014-2015 with comparing with the 2012-2013.
INTERPRETATION:
The liquidity of the company is decreased to 98.649% in the first year, but in second
year it decreased to 171.746% to base year 2012-2013. This clearly shows that there is
no improvement in liquidity position of the company.
The increase in inventory can be on account of accumulation of stocks for want of

customer, not selling of whole finished goods. An increase in inventory may increase
working capital of the business but it will not good for the business.
LONG TERM FINANCIAL POSITION:
Table 4.21: Statement showing the changes of net fixed assets & percentage change
in fixed assets and long term liabilities 2013-2014 as comparing to 2014-2015

INCREASE INCREASE
(OR) (OR)
PARTICULARS 2012-2013 2013-2014
DECREASE DECREAS
AMOUNT E%
A)fixed assets
1.tangible asset 10,40,20,907 83,93,291 -9,56,27,616 -91.93
2.intangible assets ---- ----
total fixed
10,40,20,907 83,93,291 -9,56,27,616 -91.93
assets(A)
B)long term
liabilities and
capital
1.share capital
9,50,000 9,50,000 --- 42.48
2.reserves and
89,36,945 1,27,33,821 37,96,876 6.87
surplus
4,02,00,093 3,74,35,895 27,64,198
3.long term
borrowing
73,280 --- -73280 -100
4.deffered tax
liability
total liabilities and
5,01,60,318 5,11,19,716 9,59,398 1.91
capital(B)
net fixed assets
5,38,60,589 4,27,26,425 1,11,34,164 20.67
(A-B)
TABLE 4.22: Statement showing the calculation of net fixed assets & percentage
changes in the fixed assets and long term liabilities 2014-2015 as comparing to 2012-
2013.

(OR) (OR)
DECREASE DECREAS

AMOUNT E%
A)fixed assets
1.tangible asset 10,40,20,907 46,31,462 -9,93,89,445 -95.54
2.intangible assets ---- --- --- ---
total fixed assets
10,40,20,907 46,31,462 -9,93,89,445 -95.54
(A)
B)long term
liabilities and
capital
9,50,000 9,50,000 --- ---
1.share capital
89,36,945 1,49,83,730 60,46,785 67.66
2.reserves and
4,02,00,093 6,50,37,653 2,48,37,560 61.78
surplus
3.long term
borrowing
73,280 --- -73280 -100
4.deffered tax
liability
total liabilities and
5,01,60,318 8,09,71,383 3,08,11,065 61.42
capital (B)
net fixed assets
5,38,60,589 7,63,39,921 2,24,79,332 41.73
(A-B)
ANALYSIS:
 The table showing 4.20 & 4.21 are showing 2297.045% increase in total fixed
asset of the year 2013-2014 and 93.414% has increased in the year 2014-2015 as
compared to 2012-2013.
 885.239% has been increased in long term liabilities and shareholder funds for
2013-2014 and 16.676 has been increased by long term liabilities and shareholder
funds in the year 2014-2015 with compared with 2012-2013.

 Net fixed assets (fixed assets-(long term liabilities-shareholder funds) has been
decreased to -236.446% in the year 2013-2014 and has increased to -208.265 in
the year 2014-2015 has been compared to 2012-2013.
INTERPREATION:
This analysis shows that the assets value has been decreased higher percentage than
the long term liabilities and shareholder funds. This clearly depicts that the value of
fixed assets of the company is more than liabilities. So the companies want to
purchase assets to make available for unbalance able times in the business.
PROFITABILITY
TABLE 4.23: statement showing the percentage changes in reserves and surplus
2013-2014 compared to 2012-2013.
INCREAS INCREASE
E (OR)
PARTICULAR 2012-2013 2013-2014
(OR) DECREASE
DECREAS %

E
AMOUNT
reserves and surplus 89,36,945 1,27,33,821 37,96,876 42.48
net reserves and surplus 89,36,945 1,27,33,821 37,96,876 42.48
TABLE 4.24: showing the percentage changes in the reserves and surplus 2014-2015
with compared to 2012-20
INCREAS
INCREAS
E (OR)
E (OR)
PARTICULAR 2012-2013 2013-2014 DECREAS
DECREAS
E
E%
AMOUNT
1,49,83,73
reserves and surplus 89,36,945 60,46,785 67.66
0
net reserves and 1,49,83,73
89,36,945 60,46,785 67.66
surplus 0
ANALYSIS:
The table 4.22 &4.23 are showing 42.48% of increase in reserve and surplus in the
financial year 2013-2014 and 67.66 of increase in the financial year 2014-2015 with
compare to 2012-2013.
INTERPERTEATION:

The company has been transferring some percentage of amounts to reserves and
surplus account out of the profit of the years 2013-2014 and 2014-2015 with
compression 2012-2013. So the company is having internal sources of funds for its
financial requirement. This shows the profitability of the company has been increased.
FINDINGS, SUGGESTION AND CONCLUSION
FINDING
A study of comparative balance sheet, with the help of special reference to Apple auto
Suzuki motors private limited company, has been carried out. The study has thrown
light on some important factors and factors and they can be summarized as follows.

 The company has not issued any shares to public to raise the share capital. It stood
at RS. 950000 from 2012-2013, 2013-2014 to 2014-2015 and it does not increase
of share. The company has fulfilled its financial requirements through the long
term loans.
 The company has been transferring some percentage of amounts to reserves and
surplus account out of profit of the year 2012-2013, 2013-2014 and 2014-2015. So
the company is having internal sources of funds for its financial requirement. This
shows the profitability of the company has been slowly decreasing.
 The company has been taken long term borrowing more in 2012-2013, but it will
be reducing in 2013-2014 and 2014-2015. So the company has decreasing
borrowing from outside.
 The company’s non-current liability has been increasing in high percentage and it
will’s completely decreasing in 2014-2015.
 The company’s current liability has been increasing in 2012-2013, 2013-2014 but
the company short term borrowing is decreasing in 2014-2015.
 The company’s current liability has been increasing and decreasing in 2012-2013,
2013-2014 and 2014-2015it’s increasing. Because of this the company’s trade
payables financial position may effect.
 The company’s other current liability has been increasing in 2012-2013 and
decreasing in 2013-2014 and increasing. So this company’s may affect their
financial position.
 The company’s current liability has been increasing in high percentage. Because of
this the company’s short term provision financial position may effect.
 The company’s fixed asset has been decrease in base year and increase in next year
.But again decrease of fixed asset in current year May leads to effect of financial
position.
 The company’s deferred tax asset has been no changes in second year and increase
of deferred tax may help to increase of assets of the company.
 The company has invested its long term funds on plant and machinery. The value
of fixed assets will be increasing and decreasing order. This shows there is an
decrease in production.
 The company’s current investment has been in risk .Due to do not purchase of
investment.

 Company’s inventory is decreasing year by year; it will decrease the value of

current assets. The inventories can decrease because of selling of whole finished
goods or purchasing of fewer raw materials. It leads to decrease the stock
maintenance expenses.
 Company’s trade receivable is decreasing year by year, it will the liquid position of
the company. But there is also risk in receiving amount.
 The company has used the cash and cash equivalents for the negative position. So
the company does not have any cash and cash equivalents. This shows that here is
a nothing improvement in liquid position of company.
 The company is having decrease in base year of the company. But the company has
been surplus fund. This can get back easily when the company needs money for
smooth running of the company.
 The company has other current assets are increase in base year. But company has
face risk due to more percentage of lose of other current and next they will earn
surplus fund. This shows the company will leads in liquid.
SUGGESTION
 The company can issue equity shares to public to raise long term capital and also
the company can avoid expenses like payment of interest.
 Reserves and surplus is the internal source of capital of the company. This amount
can be utilized for the business requirement. There is no need of giving return for
the funds like interest.

 The company’s fixed assets are decreased in higher percentage than long term
fund. This clearly high light that some part of fixed assets is purchase by utilizing
working capital, it will affect working capital. The company can raise long term
funds for investing in fixed asset.
 The company has been recovery their trade receivables to maintain their financial
position in good condition.
 The company has maintained current investment or invests in sources to maintain
financial position in better way.
 The company has to motivate and involve employees achieve some organizational
growth targets.
 The company has to encourage the employees to upgrade and enhance knowledge
and skill through effective training and development.
CONCLUSION:
The dissertation has provided an opportunities to do the in depth study of a particular

topic; it has also helped to get insight into the topic and its role in a present scenario.
A study of comparative balance sheet in apple auto agency private limited is to
analysis the financial position of the company. The company’s financial position is

analysis by using the tools comparative balance sheet three years. The various assets
and liabilities of the years 2012-2013, 2013-2014 and 2014-2015are compared.
It can be stated that the company’s profitability increasing year by year and also
there is an improvement in current financial position. The liquidity position of
company is decreasing because of inventory is increasing and long term solvency
position is also improving.
ANNEXURE
BALANCE SHEET AS AT 31 MARCH 2013 OF APPLE AUTO

AGENCY PRIVATE LIMITED
PARTICULARS SCHD 2013 2012

Rs. Rs.
1.EQUITY &LIABILITIES
Shareholders Fund
a)Share Capital 1 9,50,000 9,50,000
b)Reserves & Surplus 2 89,36,944.56 52,03,202
c)Money received against share --- ---
warrants
98,86,944.56 61,53,202
Share application money pending 22,24,301 22,24,301
allotment
Non-Current Liabilities
a)Long Term Borrowings 3 4,02,00,093 3,76,53,954
b)Deferred Tax Liability(net) 4 73,280 6,179
c)Other Long Term Liabilities 5 --- ---
d)Long Term Provisions --- ---
4,24,97,674 3,98,84,434
Current Liabilities
a)Short Term Borrowings 6 44,87,106 24,57,522
b)Trade Payables 7 1,06,52,219.69 1,02,19,245.43
c)Other Current Liabilities 8 25,79,694.50 15,24,690.56
d)Short Term Provisions 9 64,10,855 46,08,799
2,41,29,875.19 1,88,10,257
Grand Total 7,65,14,493.75 6,48,47,893
2.ASSETS
Non-Current Assets
a)Fixed Assets
i. Tangible Assets 10 1,04,02,907 43,39,546
ii. Intangible Assets --- ---
iii. Capital work-in-progress --- ---
b)Non Current Investments 11 --- ---
c)Deferred Tax Assets(net) --- ---
d)Long Term Loans & Advance 12 3,58,72,389 3,74,88,143
e)Other Non Current Assets 13 --- ---
4,62,75,296 4,18,27,689
Current Assets
a)Current Investments --- ---
b)Inventories 14 2,36,56,151 1,52,53,011
c)Trade Receivables 15 24,19,233 13,59,865
d)Cash & Cash equivalents 16 25,75,756.75 51,45,673
e)Short Term Loans & Advances 17 11,26,220 6,85,135
f)Other Current Assets 18 4,61,837 5,76,520
3,02,39,197.75 2,30,20,204
Grand Total 7,65,14,493.75 6,48,47,893



Rs. Rs.
Shareholders Fund
a)Share Capital 1 9,50,000 9,50,000
b)Reserves & Surplus 2 1,27,33,821 89,36,944.56
c)Money received against share --- ---
warrants
1,36,83,821 98,86,944.56
allotment
b)Deferred Tax Liability(net) 4 --- 73,280
c)Other Long Term Liabilities 5 --- ---
d)Long Term Provisions --- ---
3,96,60,196 4,24,97,674
Current Liabilities
b)Trade Payables 7 1,58,89,366 1,06,52,219.69
c)Other Current Liabilities 8 59,27,118 25,79,694.50


2,74,04,511 2,41,29,875.19
Grand Total 8,07,48,528 7,65,14,493.75
2.ASSETS
Non-Current Assets
a)Fixed Assets
i. Tangible Assets 10 83,93,290 1,04,02,907
c)Deferred Tax Assets(net) 1,22,327 ---
d)Long Term Loans & Advance 12 94,62,395 94,84,441
e)Other Non Current Assets 13 --- ---
1,79,78,012 1,98,87,347
Current Assets
a)Current Investments --- ---
b)Inventories 14 2,90,18,631 2,36,56,151
d)Cash & Cash equivalents 16 12,70,704 25,75,756.75
e)Short Term Loans & Advances 17 22,86,708 11,26,220
f)Other Current Assets 18 2,73,45,428 2,68,49,785
6,27,70,515 5,66,27,145.75
Grand Total 8,07,49,528 7,65,14,493.75



Rs. Rs.
Shareholders Fund
a)Share Capital 1 9,50,000 9,50,000
b)Reserves & Surplus 2 1,49,83,730 1,27,33,821
c)Money received against share ---
warrants
1,59,33,730 1,36,83,821
allotment
b)Deferred Tax Liability(net) 4 --- ---
c)Other Long Term Liabilities 5 ---
d)Long Term Provisions ---
6,72,61,954 3,96,60,196
Current Liabilities
b)Trade Payables 7 2,27,31,264 1,58,89,366
c)Other Current Liabilities 8 52,18,955 59,27,118
3,48,63,319 2,74,04,511
Grand Total 11,80,59,003 8,07,48,528
2.ASSETS
Non-Current Assets
a)Fixed Assets
i. Tangible Assets 10 46,31,462 83,93,290
c)Deferred Tax Assets(net) 9,87,460 1,22,327
d)Long Term Loans & Advance 12 1,06,10,981 94,62,395
e)Other Non Current Assets 13 ---
1,62,29,903 1,79,78,012
Current Assets
a)Current Investments ---
b)Inventories 14 2,86,36,932 2,90,18,631


d)Cash & Cash equivalents 16 28,21,798 12,70,704
e)Short Term Loans & Advances 17 3,66,45,098 22,86,708
f)Other Current Assets 18 3,00,50,822 2,73,45,428
10,18,29,099 6,27,70,515
Grand Total 11,80,59,002 8,07,49,528
BIBLIOGRAPHY
Annual reports of APPLE AUTO AGENCY
REFERENCE BOOKS AUTHORS
Financial management Esswarrapa
Financial accounting Ashok. Bannered
Management accounting M.N. Arora

Management accounting Shashi. K gupta
Website:
www.suzuki. Com

Sathi Project To Company

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sathi Project To Company

Uploaded by

Copyright:

Available Formats

A STUDY ON FINANACIAL MANAGEMENT AT APPLE AUTO AGENCY

“A STUDY ON FINANCIAL STATEMENT AT APPLE AUTO AGENCY”

A Project report submitted to Bangalore University in partial fulfillment of

Requirement for the award of the degree of

Bachelor of Business Management

Register No: (13PAC24045)

Under the guidance of

Department of Commerce and Management

Swamy Vivekananda Rural Education Society ®.1963

Finance is often defined as simply as management of money of “funds

Financial performance measures assess the efficiency and profitability of

Finance is regarded as the lifeblood of business enterprise. This is because of

The main activities to the successful administration of finance in any organization

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 2

DEFINITION OF BUSINESS FINANCE

According to prather and wert, “Business finance deals with raising,

DEFINITION OF FINANCE MANAGEMENT

According to phillippatus, “Financial management is concerned with the

 The traditional phase

KEY ACTIVITIES OF FINANCIAL MANAGEMENT

 Financial analysis, planning and controlling

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 3

 Management of firm’s financial structure

Public finance Private finance Institutional finance International

a. States Government a. Personal finance

Public finance deals with the requirements, receipts, and disbursements of

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 4

AIMS OF FINANCE FUNCTION

The finance function has the following aims:

1. Assessing the financial requirements:

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 5

SCOPE OF FINANCE FUNCTION

3. Selecting a source of finance:

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 6

ORGANIZATION STRUCTURE OF FINANCE

Finance manager Accounts manager/

Budget Cash Credit Financial Tax Internal

NATURE OF FINANCE FUNCTIONS

1. In most of organizations, financial operations are centralized. This results in

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 7

2. Finance functions are performed in all business firms, irrespective of their

Financial management is that managerial activity which is concerned with planning

Finance manager is a person who heads the department of finance. He forms

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 8

An appendage to the finance with creation of complex industry structure,

MEANING OF FINANCIAL MANAGEMENT

Financial management refers to the management of finance. It is the effective

IMPORTANCE OF FINANCIAL MANAGEMENT

Financial management is applicable to every type of organization, irrespective of

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 9

Some of the importance of the financial management is as follows:

1. Financial planning and control:

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 10

ROLE OF FINANCE MANGERS

The role of a financial manager can be discussed under the following

FUNCTIONS OF FINANCE MANGER

 He should anticipate the financial requirements

KEY ACTIVITIES OF FINANCIAL MANAGEMENT

SWAMY VIVEKANADA RURAL FIRST GRADE COLLEGE Page 11

 Financial analysis, planning and controlling

FUNCTION OF FINANCIAL MANAGEMENT

1. Estimation the financial requirements

DECISION OF FINANCIAL MANAGEMENT