Final Project Report - Ratio Analysis (1) Modified

“Ratio Analysis of Indian Auto Mobile Sector and
Analysis of Impact of Lockdown on Auto Mobile

Sector”.
In fulfilment of the requirement for the degree of
Bachelor of Business Administration
Submitted to: prof. Sandip karmakar (project supervisor )
Prof. Robin kr. Agarwal (HOD Management)
Submitted by : Santanu Modi (32205018018)
Souvik chatterjee (32205018010)
Souvik patra (32205018009)

Index
Content Page No.
RESEARCH METHODOLOGY 7
PURPOSE 8
A SMALL INTRODUCTION TO THE INDIN AUTOMOBILE 9
SECTOR
HISTORY OF THE INDIAN AUTOMOBILE SECTOR 10
The introduction to the Auto Mobile Companies 11

What is Ratio Analysis 15
Advantages of Ratio Analysis 15
Limitation of Ratio Analysis 17
TYPE OF RATIO 18
Analysis of the 8 types of Ratio of the selected Auto 23-51
Mobile Company:-
TATA MOTORS 24-29
MARUTI SUZUKI 29-33
MAHINDRA & MAHINDRA 33-37
BAJAJ AUTO 37-41
HERO MOTO CORP 41-45
TVS MOTORS 45-51
The analysis of quarterly Income Statement for the FY 52-63
2020-21:-
BAJAJ AUTO 52-53
HERO MOTO CORP 54-55
MARUTI SUZUKI 56-57
TATA MOTORS 58-59
MAHINDRA & MAHINDRA 60-61
TVS MOTORS 62-63
Content Page No.
Future opportunity of Indian automobile sector 64-65
What type of challenges are face Indian Automobile 66-67
Sector in Future
Recommendation 68-69
BIBLIOGRAPHY 70
DECLARATION
I hereby declare that the project entitle “Ratio Analysis
of Indian Auto Mobile Sector and Analysis of Impact
of Lockdown on Auto Mobile Sector”.
Submitted in partial fulfilment of the requirements for

the degree of Bachelor of Business Administration to
Asansol Engineering College(Department of
Management Students), under Maulana Abdul Kalam
Azad University of Technology, is my original work and
not submitted for the award of any other degree,
diploma, fellowship, or any other similar title or prizes.
Place: ASANSOL Souvik chattterjee

Date: Santanu modi
Souvik patra
Student of 6th sem
CERTIFICATE
This is to certify that “Santanu Modi” , “Souvik Chatterjee” and “Souvik Patra”
students of Bachelor of Business Administration ,Batch (2018-2021) of Asansol
Engineering College, Roll No. 32205018018, Roll No. 32205018010, Roll No.
32205018009 has undertaken the project under the guidance of Prof. Sandip
Karmakar for the project title “Ratio Analysis of Indian Auto Mobile
Sector and Analysis of Impact of Lockdown on Auto Mobile
Sector”
Is approved and is acceptable in quality and form.
Prof. Sandip karmakar Prof. Robin kr Agarwal
Project supervisor HOD
(Management) (Management)
ACKNOWLEDGEMENT
This has been made possible through the direct and indirect co-operation
of many expert and efficient personalities.
First and foremost I would like to acknowledge with deep gratitude and
guidance and support of (Asst. prof.) Mr. SandipKarmakar
Last but not least it would be unfair if I don`t extend my indebtedness to

our parents and all my friends for their active co-operation which was of
great help during the course of my training project.
Research Methodology
Scope of study:
The study has been carried out at both two and four
wheeler Automobile Sector of the below company.
1. Tata Motors
2. Maruti Suzuki
3. Mahindra & Mahindra
4. Hero Koto Corp
5. Bajaj Auto
6. TVS Motors
Collection of data:
 The study mainly based on the data collected from
Money Control and different finance based site.
 We have also collected the data of company web site,
journals, news paper etc.
Limitation of study:
1. In some cases data were not available.
2. Due to audit work and non-publishing data we have
face some problems.
PURPOSE
The purpose of our study is to acquire knowledge on short and long term
financial position of the company and thereafter to present the project
report based on the extensive study and analysing them.
The purpose of study are mention below:
 To study and analyse the financial position of the company through

ratio analysis.
 To analyse the profitability position of the company.
 To determine the long term solvency position of the company.
 To suggest the feasible solution to improve the overall efficiency of
the company.
A SMALL INTRODUCTION TO THE INDIN AUTOMOBILE SECTOR
In 2020, India was the fifth-largest auto market, with ~3.49 million units
combined sold in the passenger and commercial vehicles categories. It
was the seventh largest manufacturer of commercial vehicles in 2019.
The two wheelers segment dominate the market in terms of volume
owing to a growing middle class and a young population. Moreover, the
growing interest of the companies in exploring the rural markets further
aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth
expectations for the near future. In addition, several initiatives by the
Government of India and major automobile players in the Indian market
is expected to make India a leader in the two-wheeler and four-wheeler
market in the world by 2020.
HISTORY OF THE INDIAN AUTOMOBILE SECTOR
Soon after independence 1947, Government of India tried to create an automotive

component manufacturing industry in order to supplement the automobile
fraternity. From 1960 to 1980s, the Indian market was dominated by Hindustan
Motors, which gathered a large amount of share due to its Ambassador model.
However, during 1950s till 1960s, the overall industry moved at a slow pace due to
trade restrictions set on imports. Soon after this repressive phase, demand surged
but to a smaller extent, which was mainly seen in the tractor and commercial
vehicles segment.
It was in 1980s that the two firms, Hindustan Motors and Premier, were challenged
by a new entrant, MarutiUdyog Limited. Soon after liberalization period, car makers
that were previously not allowed to invest in Indian market due to stringent policies
arrived in the country. Post liberalization, the alliance between Maruti and Suzuki
was the first joint venture between an Indian company and foreign one. Slowly and
steadily, the economic reforms brought in the led to the entry of major foreign
companies like Hyundai and Honda, which expanded their bases to the country.
From 2000 to 2010, almost every major car company expanded its presence to India
by establishing manufacturing facilities across different parts of the country.
As the manufacturing process during early 2000 decade gained traction, exports of
cars was quite slow in that period. Maruti Suzuki was among the first car brands that
started shipping vehicles to major European markets. During the same decade, the
Government of India introduced mandatory emission norms in order to reduce
pollution arising out from vehicles. The updated guidelines were known as 'Bharat
Stage' came into effect in major cities as these standards were based on stringent
European norms. At present, Bharat Stage IV is implemented in 13 cities that include
Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune,
Surat, Kanpur, Lucknow, Solapur, and Agra while the rest of the nation is still under
Bharat Stage III.
The introduction to the Auto Mobile Companies-

Tata Motors
Tata Motors Limited is an Indian multinational automotive manufacturing
company, headquartered in Mumbai, Maharashtra, India, and part of
Tata Group. The company produces passenger cars, trucks, vans, coaches,
buses, sports cars, construction equipment and military vehicles.
Tata Motors has auto manufacturing and vehicle plants in Jamshedpur,

Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Great Britain, and Thailand. It has research and
development centres in Pune, Jamshedpur, Lucknow, and Dharwad, India
and South Korea, Great Britain, and Spain.
 Its was founded by : J R D Tata in 1945.

 Headquarter :Mumbai
 Chairman :NatarajanChandrasekaran.
 The market capitalization is Rs.1,14,517.41 cr.
Maruti Suzuki
Maruti Suzuki India Limited (MSIL), formerly known as MarutiUdyog
Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India’s
largest passenger car company, accounting for over 50 per cent of the
domestic car market. MarutiUdyog Limited was incorporated in 1981… It
was founded and owned by the Government of India between 1981 until
2003 It was sold to Suzuki Motor Corporation by Government of India in
2003.
 Chairman :R. C. Bhargava.

 CEO: kenichiAyukawa.
 The market capitalization is Rs.2,28,790.91 cr.
Mahindra Automobile
It is one of the largest vehicle manufacturers by production in India and
the largest manufacturer of tractors in the world. It is a part of
the Mahindra Group, an Indian conglomerate. It was ranked 17th on a list
of top companies in India by Fortune India 500 in 2018.[5] Its major
competitors in the Indian market include Maruti Suzuki and Tata Motors.
 In 1999, Mahindra purchased 100% of Gujarat Tractors from the Government
of Gujarat and in 2017 Mahindra renamed it as GromaxAgri Equipment
Limited, as part of new brand strategy and the models continue to be sold as
Trakstar
 In 2007, M&M acquired Punjab Tractor Limited (PTL) making it the world's
largest tractor manufacturer
 In 2008, they entered the two-wheeler industry by taking over Kinetic
Motors in India
 In 2010, M&M took a 55% stake in the REVA Electric Car Company and in
2016, they renamed it Mahindra Electric Mobility Ltd after taking 100%
ownership.
 In 2011 Mahindra and Mahindra acquired South Korea's SsangYong Motor
Company.
 In October 2014, Mahindra and Mahindra acquired a 51% controlling stake
in Peugeot Motocycles and progressed to acquire a 100% controlling stake in
October 2019.
 In May 2015 Mahindra acquired a 33.33% stake in Japanese tractor
manufacturer Mitsubishi Agricultural Machinery (MAM), a subsidiary of
the Mitsubishi Heavy Industries
 In December 2015, Mahindra and Mahindra Ltd and affiliate Tech Mahindra
Ltd, through a special purpose vehicle (SPV), have agreed to buy a 76.06%
stake in Italian car designer PininfarinaSpA, for €25.3 million (around Rs.186.7
crore)
 The market capitalization is Rs.8878.82 cr.
 The Chairman is Mr.ShriprakashSukhla
Hero Moto Corp

Hero moto corp :Hero MotoCorp Limited, formerly Hero Honda,
is an Indian multinational motorcycle and scooter manufacturer
based in New Delhi, India. The company is the largest two-
wheeler manufacturer in the world, and also in India, where it
has a market share of about 37.1% in the two-wheeler industry.
As of 27 May 2021, the market capitalization of the company was
₹59,600 crore.
 Hero moto corp base on New Delhi.
 Founded by :BrijmohanLallMunjal in 1984.
 The Chairman is Mr.PawanMunjal
 The market capitalization is Rs.58,335.65 cr.
Bajaj Auto
Bajaj Auto Limited is an Indian multinational two-wheeler and
three-wheeler manufacturing company based in Pune,
Maharashtra. It manufactures motorcycles, scooters and auto
rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded
by JamnalalBajaj in Rajasthan in the 1940s. The company has
plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar
in Uttarakhand. The oldest plant at Akurdi (Pune).
 The chairman is Mr.Rahul Bajaj
 Market capitalization is Rs.1,20,820.86 cr.
 This brand is very famous for Bajaj Chetak bike and now the most
popular bike under Bajaj Auto is Bajaj Pulsar.
TVS Motors
TVS Motor Company Limited (TVS) is an Indian multinational
motorcycle company headquartered at Chennai, India. It is the
third largest motorcycle company in India. The company has an
annual sales of 3 million units and an annual capacity of over 4
million vehicles. TVS Motor Company is also the 2ndlargest two
wheeler exporter in India with exports to over 60 countries.
TVS motor founded was 1978 by T. V Sundaram.
 Headquarter :Chennai
 Chairman : Venu Srinivasan
 The market cap is Rs.29,075.33 cr.
Ratio Analysis
Content-
 What is Ratio Analysis?

 Advantages of Ratio Analysis
 Limitation of Ratio Analysis
 What the Types of Ratio?
 Gross Profit Margin
 Net Profit Margin
 Return on Capital Employed
 Current Ratio
 Liquid Ratio/Quick Ratio
 Inventory Turnover Ratio
 Debtors Turnover Ratio
 Debt-Equity Ratio.
 What is Ratio Analysis?
Ratio analysis is the process of determining and interpreting numerical

relationships based on financial statements. A ratio is a statistical yard stick
that provides a measure of the relationship between variables or figures. This
relationship can be expressed as percent or as a quotient
Ratio analysis compares line-item data from a company's financial

statements to reveal insights regarding profitability, liquidity, operational
efficiency, and solvency.
Ratio analysis can mark how a company is performing over time, while
comparing a company to another within the same industry or sector.
 Advantages of Ratio Analysis
 To measure the liquidity position : The purpose of ratio analysis is to

measure the liquidity position of a firm. Whether the firm is able to
meet its current obligations when they become due. The liquidity ratio
are useful in credit analysis by banks and other financial institutions.
 To know the solvency position: Ratio analysis is helpful for assessing

the long-term financial liability of the firm. The long term solvency is
measured through the leverage, and profitability ratios. These ratios
reveal the strengths and weaknesses of a firm in respect of the solvency
position.
 Operating efficiency or turnover of the firm: The ratios are helpful in

measuring the operating efficiency or the turnover of the firm. These
ratios indicate the efficiency in utilizing the assets of the firm. such as
fixed assets turnover ratio, total resources turnover ratio etc.
 To assess the profitability position of the firm : The ratios are useful to
assess and measure the profitability of the firm in respect of sales and
the investments.
 Inter - firm and intra – firm comparison : Ratios are also helpful while
doing inter-firm comparison. This would demonstrate the relative
position of the firm vis-à-vis its competitor.
 Trend Analysis: The trend analysis of ratios indicates whether the
financial position of a firm is improving or deteriorating over the year`
The significance of a trend analysis of ratio lies in the fact that the
analysis can know the direction of movement whether the movement is
favorable or unfavorable
 Limitation of Ratio Analysis
 Inadequate Standard: It is always a challenging job to find an adequate

standard. The conclusions drawn from the ratios can be no better than
the standards against which they are compared.
 Choosing of Factors: It is difficult to evaluate the differences in the

factors that affect the company’s performance in a particular year as
compared with that of another year and that of another company.
 Price variance: While making comparisons of ratios, due allowance

should be made for changes in price level. A change in price level can
seriously affect the validity of comparisons of ratios computed for
different time periods.
 Difference in definition: Comparisons are also become difficult due to

differences in definition. The terms like gross profit, operating profit,
net profit etc. have not got precise definitions.
Types of Ratio
Liquidity Ratio Leverage Ratio Activity Ratio Profitability Ratio

Inventory
Turnover Ratio Gross Profit
Margin
Current Debt Ratio
Ratio
Debt-Equity
Ratio Net Profit
Quick Margin
Ratio
Other Debt Net Margin
Ratio Based on
Cash Ratio
NOPAT
Operating
Net WC Expenses Ratio
Ratio
Return on
Investment
Earning Per Share Dividend Yield

PE Ratio
Dividend per
Share
 Gross Profit Margin

Gross Profit Ratio (GP ratio) is a financial ratio that measures the
performance and efficiency of a business by dividing its gross profit
figure by the total net sales.
INDICATIONS:- Gross profit ratio shows the proportion of profits

generated by the sale of products or services, before selling and
administrative expenses. It is used to examine the ability of a
business to create sellable products in a cost effective manner.
Gross Profit
Gross Profit ratio = * 100
Net Sales
 Net Profit Ratio

Net profit ratio (NP ratio) is a popular profitability ratio that shows
relationship between net profit after tax and net sales. It is computed by
dividing the net profit (after tax) by net sales.
Net profit after tax

Net profit ratio =
Net Sales
INDICATIONS:- The net profit ratio, also referred to as the net profit margin is
a way to measure the financial performance or profitability of a business in
relation to the costs associated with the production and distribution of
products along with other expenses.
Return on Capital Employed

Return on Capital Employed means the return on Assets. Here assets means
Fixed Assets + Net Current Assets. Net Current Assets = Current Assets –
Current Liabilities. Capital Employed can also be calculate from the liability
side by Adding the Share Capital and Long Term Liabilities. This ratio also
called Assets Turnover Ratio.
Return on Capital Employed = Net operating after tax but before Interest
Net Capital Employed
Indication- It implies how the company is utilizing its assets to generate profit.
 Current Ratio: -
Current Ratio is a kind of liquidity ratio, that shows the relationship between
current assets and current liabilities. It measures a company’s ability to pay
short-term obligations or those due within one year. The industry standard is
2:1 that means 2 times of current assets compare to its current liabilities but
holding more current assets leads to loss of interest.
Current Assets
Current Ratio =
Current Liabilities
Indication: - It indicates the companies ability to pay short term

liabilities.
 Liquid ratio: -
Liquid Ratio is also termed as “Liquidity Ratio”, “Acid Test Ratio” or “Quick
Ratio”. It is the ratio of liquid assets to current liabilities. The true liquidity refers
to the ability of a firm to pay its short term obligations as and when they
become due.
Current Assets - Inventories

Liquid Ratio =
Current Liabilities
INDICATION:-The Liquid Ratio Is Better to indicates the Liquidity position of a

company and also indicates the firms capacity to generate immediate cash.
 Inventory Turnover ratio :-

The Inventory Turnover ratio is a financial metric that tells you how many times
throughout a period of time the company converted its inventories in cash for
the business. The higher ratio is recommendable. That means the high ratio
indicates that the inventory is rotating more.
Cost of goods sold

Inventory Turnover Ratio =
Average Inventory
INDICATION:- Inventory Turnover ratio indicates the efficiency of the firm in

producing and selling products. It also indicates the days of inventory
holdings.
 Debtors Turnover Ratio

Receivable Turnover Ratio or Debtor's Turnover Ratio is
an accounting measure used to measure how effective a company is in
extending credit as well as collecting debts. The receivables turnover ratio is
an activity ratio. When the ratio is more that means the company is collecting
money from the customer in quick basis.
Debtors Turnover ratio = Credit Sales

Average Debtors
INDICATION:- Debtors Turnover ratio indicates the efficiency of the firm for
collecting the dues from the customer.
 Debt Equity Ratio
The Debt Equity ratio is a financial ratio indicating the relative proportion of
shareholders equity and debt used to finance a company’s assets. High debt
equity ratio means the company having more debt compare to its equity, which
is a risky situation for a company.
Debt Equity Ratio= Total Debt

Net Worth
INDICATION :- It indicates the relationship between Total interest bearing

debt with the Net Worth or Share Holders fund.
Analysis of the 8 types of
Ratio of the selected Auto
Mobile Company
Tata Motors
Profitability Ratio: -
Profitability Ratio Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Gross Profit Margin (%) -4.65 -9.16 2.66 0.35 -3.21
Net Profit Margin (%) -5.09 -16.59 2.91 -1.75 -5.48
Return On Capital
-3.54 -6.72 11.07 4.84 -1.11
Employed (%)
15
10
0 Gross Profit
Mar '21 Mar '20 Mar '19 Mar '18 Mar '17 Net Profit Margin
Return on Capital
-5 Employed
-10
-15
-20
Comment: -
Gross Profit Margin-
The Gross Profit margin shows the relationship between Gross Profit and
Sales. The above data showing the poor performance of this company.
Starting from the year 2017 up to 2021, the Gross Profit is negative,
except in the year 2018 & 2019, but was only 0.35% & 2.66% respectively.
There is some improvement in the year 2021 compare to the year 2020,
but it is still in negative. That means the profit is not well enough to cover
up its expenses.
Net Profit Margin: -

The net profit result is worse. Starting from 2017 it is negative. In the year
2020 it was -16.59%, if we compare between, 2020 and 2021 there is an
improvement but the result is still negative.
Return on Capital Employed:-
Return on capital Employed is a very important ratio to find out, how the
company is utilizing its capital and debt. But except in the year 2018 &
2019, in all three year it is negative. This is not an acceptable figure for an
investor.
Liquidity Ratio: -
Liquidity Ratio Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Current Ratio 0.56 0.46 0.54 0.57 0.53
Quick Ratio 0.49 0.53 0.51 0.44 0.42
0.6
0.5
0.4
0.3 Current Ratio

Quick Ratio
0.2
0.1
0
Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Comment: -
Current Ratio: -
Current Ratio is the best ratio to find out the liquidity position of a
company. The company is able to maintain the ratio at 0.5 times only.
That means the company is able to maintain the current assets, as half of
its liabilities. This is because huge Trade Payable figures, where the
receivable and inventory is very less. If the company wants to improve
the ratio, they need to decrease the Trade Payable figure, by making the
timely payment to its creditors.
Quick Ratio:-
Quick ratio shows the liquidity position in more details. The company is
able to maintain the ratio in near to 0.5 times, that means half of its liquid
liabilities. To improve the ratio the company needs to make timely
payment to its creditors.
Activity Ratio: -
Activity Ratio Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Inventory Turnover
10.33 11.46 14.84 10.52 8.83
Ratio
Debtors Turnover
23.14 16.8 20.56 20.98 21.24
Ratio
25
20
15
Inventory Turnover Ratio
Debtors Turnover Ratio
10
0
Comment
Inventory Turnover Ratio-
Inventory Turnover Ratio shows, that in how many days interval the inventory is
rotating. As per the above data the inventory was rotating in 41-42 days, but now in
2020 and in 2021 the ratio is slightly improved and now the rotation days is 35 days,
that means the company is improving its utilization of materials.
Debtors Turnover Ratio-

The Debtors Turnover Ratio indicates, that how we are collecting the due money
from our customer. As per data the collection from debtors is marginally improved.
Previously in the year the collection period was 17-18 days, but now collection days
become 15-16 days. We can not say it as remarkable improvement.
Leverage Ratio
Leverage Ratio Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Debt Equity
0.99 1.19 0.79 0.81 0.89
Ratio
Debt Equity Ratio
1.2
0.8
Debt Equity Ratio
0.6
0.4
0.2
0
Comment-
Debt-Equity Ratio- Debt Equity ratio shows the relationship between the Long
Term Debt and the Equity. As per the above data the company is having equity and
debt almost equal. More debt in a company is not desirable, so as of now it is
acceptable but, if the ratio will become more than 1, then it is a risky situation for a
company.
Maruti Suzuki
Profitability Ratio
Gross Profit Margin(%) 3.2 4.99 9.27 11.66 11.39
Net Profit Margin(%) 6.01 7.47 8.71 9.68 10.8
Return On Capital
10.14 14.82 22.77 27.1 27.22
Employed(%)
30
25
20
Gross Profit Margin
15 Net Profit Margin
Return on Capital
Employed
10
0
Comment
Gross Profit Margin & Net Profit Margin-
Both Gross Profit margin and Net Profit margin is decreasing year by year.
Of we compare the data, starting from 2017 up to 2021, both the ratio is
decreasing. The expenses are increasing compare to its sales, may be due
to fall in demand, this is happening.
Return on Capital Employed-
Return on capital Employed is a very important ratio to find out, how the
company is utilizing its capital and debt. In the 2017, 2018 and even in the
year 2019 the figure was good because it was more than 20%. But now it
is decreasing drastically. In the year 2021 it has become near to 10%. To
attract the investor the company need to improve the ratio.
Liquidity Ratio-
Current Ratio 0.62 0.63 0.56 0.49 0.55
Quick Ratio 0.48 0.41 0.37 0.31 0.35
0.7
0.6
0.5
0.4
Current Assets
0.3 Quick Ratio
0.2
0.1
0
Comment-
Current Ratio & Quick ratio-
The current and Quick ratio both are the indicator of liquidity position of
a company. There is a marginal improvement in both the Current Ratio
and Liquid Ratio. But the company is able to maintain it around 0.5 times
only. That means the company is having only 50% current assets compare
to its current liabilities. This is because the company is having huge Trade
Payable in its Balance Sheet. To improve the ration they need make
timely payment to its creditors.
Activity Ratio-
Inventory Turnover
23.06 23.52 25.87 25.94 23.69
Ratio
Debtors Turnover
41.33 34.08 45.61 59.95 53.97
Ratio
60
50
40
30 Inventory Turnover Ratio

20
10
0
1 2 3 4 5
Comment
Inventory Turnover ratio-
The inventory turnover ratio is good for the company. The Company is
rotating its material in an average of 15-16 days is a very sign in terms of
production and maintaining the inventory etc. If the company will able to
maintain this ratio in future it will good for the company.
The Debtors turnover ratio is showing some good figures for the
company. Although the ratio is decreased very marginally, but this is
always good if the company is able to collect its due money from
customer in 8-9 days.
Leverage Ratio-
Leverage Ratio Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Debt Equity
0.01 0 0 0 0.01
Ratio
Debt-Equity Ratio
0.01
0.01
0.01
0.01
0.01 Debt-Equity Ratio
0.01
0
0
0
0
0
Comment-
Debt- Equity ratio- Debt Equity ratio shows the relationship between the
Long Term Debt and the Equity. The above data indicates that the
company is having very minimum amount of debt against its equity, so
the risk of the company is very low. It’s a good sign.
Mahindra & Mahindra

Profitability Ratio
Return On Capital
13.16 14.01 17.62 17.43 14.66
Employed(%)
18
16
14
12
10 Gross Profit Margin

Net Profit Margin
8 Return on Capital
Employed
6
0
Comment
Gross Profit Margin: -
In 2017 the gross profit margin was 6.78, in 2018 the gross profit margin
was 9.74, in the year of 2019 the gross profit margin 8.91, in 2020 the
gross profit margin is slightly decrease at 7.86, in the year of 2021 the
gross profit margin was 9.44, in this companies gross profit is not very
poor, which indicate the more capital a company retains on each dollar of
sales, which it can then use to pay other costs or satisfy debt obligations.
Net Profit Margin-
In the year of 2017 the Net profit was 8.27, in 2018 the net profit was
slightly increase in comparison of 2017 at 8.94, in 2019 the net profit was
same at 8.94, in the year of 2020 the net profit was highly decrease at
2.92, now in this year of 2021 the net profit was decrease even more
thanthe previous year at 0.55, that means this company uses an
ineffective cost structure and poor pricing strategies. Therefore a low
ratio can result from : Inefficient management, high costs (expenses),
Weak pricing strategies.
Return On capital Employed-

In 2017 the return on capital employed was 14.66, in 2018 the return on
capital employed was highly increase from the previous year at 17.43, in
the year of 2019 the Return on capital employed was 17.62, in the year of
2020 the return on capital employed was highly decrease in compare to
the year of 2019 at 14.01, but now in the year of 2021 the return on
capital employed was slightly decrease in compare of previous year at
13.16, In this companies Return on capital employed was decrease year
to year it indicate that the company is not operating healthily and cannot
generate returns for itself or its investors.
LIQUIDITY RATIO
Particulars Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Current Ratio 1.14 1.08 1.08 1.06 1.12
Quick Ratio 0.92 0.97 0.9 0.92 0.89
Comment
Current ratio-
In the year of 2017 the Current Ratio was 1.12, in 2018 the current ratio
was 1.06, in 2019 the current ratio was 1.08, in the year of 2020 the
current ratio rate was 1.08, in the year of 2021 the current ratio was 1.14,
this companies current ratio was good it will be indicate that this
company is more likely to pay the creditor back.
Quick ratio-
In the year of 2017 the quick ratio was 0.89, in 2018 the quick ratio was
0.92, in the year of 2019 the quick ratio was 0.9, in the year of 2020 the
quick ratio was 0.97, in the year of 2021 the quick ratio was 0.92, In this
companies quick ratio is not much lower than current ratio it will be
indicate that this company is not using assets efficiently.
LEVERAGE RATIO
Debt Equity Ratio 0.21 0.09 0.07 0.09 0.1
COMMENTS:-
Debt Equity Ratio-
In the year of 2017 the debt equity ratio was 0.1, in the year of 2018 the
debt equity ratio was 0.9, in 2019 the debt equity ratio was 0.07, in the
year of 2020 the debt equity ratio was the same as 2018 at 0.09, but now
in this year of 2021 the debt equity ratio was 0.21, In the year of 2021 the
debt equity ratio was very high in comparison of previous year. The high
debt equity ratio is often associated with high risk, it means that this
company has been aggressive in financing its growth with debt. If a lot of
debt is used to finance growth, this company could potentially generate
more earnings than it would have without that financing.
Bajaj Auto
Profitability Ratio
Profitability Ratios Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Return On Capital
23.59 33.03 29.22 30.25 31.11
Employed(%)
35
30
25
20
Gross Profit Ratio
Net Profit Ratio
15 Return on Capital Employed
10
0
Comment
Gross Profit Ratio: -
The Gross Profit ratio indicates the relation between the Gross Profit and the Net
Sales. If we see the data from the year 2017 there is a decreasing trend, but if we
compare between Mar 2020 and Mar 2021, there is a slight increment between two
years. But the company is maintaining it at 16% level.
Net Profit Margin:-
The net profit margin shows the relation between Net Profit and Net Sales. As like
Gross Profit Ratio, we can see the variations in Net Profit Ratio. In the year 2017 it
was 17.58, then decrease to 16.16 in 2018 and decrease again in 2019, but if we
compare between 2020 and 2021, there is an upward trend.
Return on Capital Employed: -
Return on Capital Employed indicates the relationship between Net Assets or Capital
+ Long Term & Short Term Borrowings with Profit after tax but before interest. In
the year March 2017 the Return on Capital employed was 31.11, which is a good
figure, but started decreasing slightly in the next two year and there was an increase
in 2020, but compare to the last year it is a very poor return and there is a decrease
of approx. 10 points. That is not a good result.
Liquidity Ratio
Current Ratio 1.14 0.99 1.14 0.94 1.1
Quick Ratio 0.9 0.77 0.97 0.77 0.9
1.2
0.8
0.6 Current Ratio

Liquid Ratio
0.4
0.2
0
Comment
Current Ratio: -
Current Ratio shows the relationship between Current Assets and Current Liabilities.
If we see the data of current ratio starting from 2017 up to 2021, the company
maintain ratio of more than 1 times or near to 1 times. That means the company is
maintaining more Current Assets than its Current Liabilities. Although it is below the
standard of 2:1, but not a bad position at all.
Liquid Ratio: -
We know that Liquid ratio shows the liquidity position if an organization in a more
absolute in nature. The company is maintaining the Liquid Ratio near to 1 times,
where the industry standard is also 1, so we can say that the company’s liquidity
position is good.
Activity Ratio
Inventory Turnover
18.57 28.13 31.46 34.42 31.7
Ratio
Debtors Turnover
12.49 13.97 14.93 20.58 26.05
Ratio
Comment
Inventory Turnover Ratio
rotating. The above data showing that the Inventory Turnover Ratio is decreasing
year by year, previously in the 2017 the inventory ratio was 31.7 times that means in
every 11-12 days interval the inventory is rotating, but in the year Mar 2021 the
inventory turnover ratio is 18.57 times, i.e. in every 19-20 days interval the
inventory is rotating, which not a good sign at all.

from our customer. As per the above data the ratio is decreasing day by day. In the
year 2017 the Debtors Turnover Ratio was 26.05 times i.e. in 14-15 days interval, the
company has collected the money from customer, but in the year 2021 the ratio
becomes 12.49 times, i.e. now the company is collecting from customer in 29-30
days time, this is not a good performance at all.
Leverage Ratio
Levarage Ratio Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Debt Equity
0.0064 0.0084 0.0078 0.0088 0.0104
Ratio
Debt-Equity Ratio
0.0120
0.0100
0.0080
Debt-Equity Ratio
0.0060
0.0040
0.0020
0.0000
Comment
Debt- Equity Ratio: -
Debt Equity ratio shows the relationship between the Long Term Debt and the
Equity. The above data indicates that the company is having very minimum amount
of debt against its equity, so the risk of the company is very low. It’s a good sign.
Hero Moto Corp.

Profitability Ratio
Profitability Ratio Mar'21 Mar'20 Mar'19 Mar'18 Mar'17

Return On Capital
25.8 27.71 39.03 44.61 46.13
Employed(%)
50
45
40
35
30
Gross Profit Margin
25
Net Profit Margin
20 Return on Capital Employed
15
10
5
0
Comment-
Gross Profit Ratio: -
The Gross Profit ratio indicates the relation between the Gross Profit and the Net
Sales. If we see the data from the year 2017 it was increased in 2018 but then
decrease trend up to 2021.Now the company is maintaining it around 11%.
Net Profit Ratio: -
The net profit margin shows the relation between Net Profit and Net Sales. As like
Gross Profit Ratio, we can see the variations in Net Profit Ratio and it is also in
decreasing trend leaving year 2020. In the year 2017 to 2019 net profit is
decreasing, but if we compare between 2020 and 2021, 2020 has upward trend. But
in the other hand 2021 has again downward trend. It is not a good sign for a
company, when the ratio of net profit is decreasing.
Return on Capital Employed: -
Return on Capital Employed indicates the relationship between Net Assets or Capital
+ Long Term & Short Term Borrowings with Profit after tax but before interest. Both
In the year March 2017 and march 2018 the Return on Capital employed was 46.13
and 44.61 respectively, which is a remarkable figure, but started decreasing in the
next two-three year. It has become 25.8% in the year 2021. This not a bad return,
but the concern is it is decreasing year by year.
Liquidity Ratio
Liquidity Ratio Mar'21 Mar'20 Mar'19 Mar'18 Mar'17
Current Ratio 0.81 0.88 1.36 0.85 0.86
Quick Ratio 0.55 0.65 1.14 0.69 0.72
1.4
1.2
0.8
Current Ratio
0.6 Quick Ratio
0.4
0.2
0
Current Ratio: -
Current Ratio shows the relationship between Current Assets and Current Liabilities.
If we see the data of current ratio starting from 2017 up to 2021, the company
maintained ratio of more than 1 times in year 2019 and rest of the year the
company is maintaining less then 1 times. That means the company is not
maintaining more Current Assets than its Current Liabilities. This kind of liquidity
position is not reflecting a good liquidity position.
Liquid Ratio: -
We know that Liquid ratio shows the liquidity position if an organization in a more
absolute in nature. The company is maintaining the Liquid Ratio less than 1 times,
where the industry standard is 1.Starting from 2017 &2018 it was approximately 0.7
times. In the year 2019 it was good that increased more than 1 times, but if we see
the data of 2021, it is 0.55 times, which not a good liquidity position at all.
Activity Ratio: -
Activity Ratio Mar'21 Mar'20 Mar'19 Mar'18 Mar'17
Inventory Turnover Ratio 20.96 26.41 31.38 39.91 47.04
Debtors Turnover Ratio 15.29 13.03 15.5 20.92 20.04
Comment: -
Inventory Turnover Ratio: -

rotating. The above data showing that the Inventory Turnover Ratio is decreasing
year by year, previously in the 2017 the inventory ratio was 47.04 times that means
in every 7-8 days interval the inventory is rotating, but in the year Mar 2021 the
inventory turnover ratio is 20.96 times, i.e. in every 17-18 days interval the
inventory is rotating, which not a good sign at all.
Debtors Turnover Ratio: -

from our customer. As per the above data the ratio is decreasing day by day. In the
year 2017 the Debtors Turnover Ratio was 20.04 times i.e. in 18-19 days interval, the
company has collected the money from customer, but in the year 2021 the ratio
becomes 15.29 times, i.e. now the company is collecting from customer in 23-24
days time. Now collecting money from the customer with in 30 days is always a good
performance, but it should not decrease further.
Leverage Ratio: -
Leverage Ratio Mar'21 Mar'20 Mar'19 Mar'18 Mar'17

Debt Equity Ratio
0.02
0.02
0.02
0.01
0.01 Debt Equity Ratio
0.01
0.01
0.01
0.00
0.00
0.00
Comment: -
Debt-Equity Ratio: -
Debt Equity ratio shows the relationship between the Long Term Debt and the
Equity. The above data indicates that the company is having very minimum amount
of debt against its equity, so the risk of the company is very low. It’s a good sign.
TVS Motors
Profitability Ratio
Return On Capital
18.58 15.89 22.04 23.87 21.25
Employed(%)
25
20
15
Gross Profit Margin
Net Profit Margin
Return on Capital
10 Employed
0
Comment :-
Gross Profit Margin: -
In the year of 2017 this company’s gross profit margin was 4.69, in 2018
the gross profit was 5.22, and in 2019 the gross profit was 5.69 and in
2020 the gross profit was 5.21, and in the year of 2021 the gross profit
was 5.58. The gross profit of this companies is not increasing very much.
That means this company cannot make a reasonable profit on sales, as
long as it keeps overhead costs in control.
Net Profit Margin: -
In 2017 this Company’s Net profit was 4.59, in 2018 this Company’s net
profit was 4.37, in 2019 this company’s net profit was 3.68 and in 2020
this company’s net profit was 3.6 and in the year of 2021 this company’s
net profit was 3.65.This company’s net profit was very poor that means
the company’s product are not being sold very much that’s why the
company’s net profit is not increasing.
Return On Capital Employed:-
The Return on Capital Employed indicates, that how well the company
utilizing its assets and investment. The above data indicates there is a mix
of up and downs in the ratio. In the year it was 21.25 times but in 2021 is
has become 18.58%, although there is a decline, but we can see the
growth between FY 2020 and FY 2021, there is an increase of approx. 3%.
LIQUIDITY RATIO
Mar Mar Mar Mar Mar

Particulars '21 '20 '19 '18 '17
Current Ratio 0.72 0.6 0.65 0.66 0.71
Quick Ratio 0.49 0.67 0.56 0.51 0.54
0.8
0.7
0.6
0.5
0.4 CURRENT RATIO

QUICK RATIO
0.3
0.2
0.1
0
COMMENTS:-
Current Ratio: -
In march 2017 this company’s Current ratio was 0.71 and in march 2018
this company’s current ratio rate was 0.66, In the year of 2019 the
Current ratio was 0.65 and in the year of 2020 the current ratio was 0.6,
but now in this year of 2021 the Current ratio rate has increased slightly
at 0.72, That means this Company’s is able to meet its short-term
obligations.
Quick Ratio:-
In the year of 2017 this companies Quick ratio rate was 0.54 in the year of
2018 the companies Quick ratio was 0.51, In the year of 2019 the
companies Quick ratio was 0.56, but in the year of 2020 companies Quick
ratio was highly increase from previous year at 0.67 but now in this year
of 2021 the companies quick ratio was highly decrease in compare to the
last year 2020 at 0.49, That means this Companies Current assets heavily
depend on inventories. If company’s quick ratio comes out significantly
lower than its current ratio, that means the company relies heavily on
inventory and may be sorely lacking other liquid assets.
LEVERAGE RATIO
DEBT EQUITY RATIO

0.6
0.5
0.4
DEBT EQUITY RATIO
0.3
0.2
0.1
0
COMMENTS:-
Debt Equity Ratio-
In the year of 2017 the company Debt equity ratio was 0.45 and in 2018
the debt equity ratio was 0.36, in 2019 the Debt equity ratio was 0.41, in
2020 the Debt -equity ratio was 0.55 and in this year the Debt equity ratio
rate was highly decrease at 0.25, That means in the year of 2020 the debt
equity ratio was high it indicate that in 2020 the company is getting more
of its financing by borrowing money, which subjects the company to
potential risk if debt levels are too high. But in the year of 2021 the debt
equity ratio was very low that indicate in that a lower amount of financing
by debt via lenders, versus funding through equity via shareholders.
ACTIVITY RATIO
Inventory Turnover
14.54 15.81 15.49 16.04 13.64
Ratio
Debtors Turnover
15.57 12.19 15.29 17.88 18.64
Ratio
20
18
16
14
12
10 INVENTORY TURNOVER RATIO
DEBTORS TURNOVER RATIO
8
6
4
2
0
COMMENTS:-
Inventory Turnover Ratio-
In 2017 the Inventory Turnover Ratio was 13.64, in 2018 the inventory
turnover ratio was 16.04, in 2019 the inventory turnover ratio was 15.49,
in the year of 2020 the inventory turnover ratio was 15.81, in 2021 the
inventory turnover ratio was 14.54, In this year the inventory turnover
ratio was slightly decrease in comparison of previous year that mean in
this year it is holding its inventory longer then previously measured time
periods. The measure of how long a company holds its inventory before
selling it is referred to as the inventory turnover ratio.

In 2017 the Debtors turnover ratio was very high at 18.64, in 2018 the
debtors turnover ratio was 17.88, in 2019 in debtors turnover ratio was
slightly decrease at 15.29 but in 2020 the debtors turnover ratio was
highly decrease in comparison of past three years at 12.19, but now in
this year of 2021 the debtors turnover ratio was slightly increase in
compared to the previous year at 15.57, That means in this year the
companies collection of accounts receivable is efficient and the company
has high proportion of quality customers that pay their debts quickly.
The analysis of quarterly Income Statement for the FY 2020-21
Bajaj Auto
Income Statement
Particular Mar-21 Dec-20 Sep-20 Jun-20 Mar '20
8,412.80 8,730.10 7,041.48 2,948.52 6,610.90

Net Sales/Income from operations
Other Operating Income 183.3 179.78 114.38 130.72 204.95
Total Income From Operations 8,596.10 8,909.88 7,155.86 3,079.24 6,815.85
EXPENDITURE
Consumption of Raw Materials 5,845.38 5,993.05 4,773.74 1,695.92 4,490.52
Purchase of Traded Goods 597.76 486.47 347.06 89.75 411.08
Increase/Decrease in Stocks -266.46 -171.28 -62.67 280.93 -236.33
Power & Fuel -- -- -- -- --
Employees Cost 306.95 317.18 324.56 337.27 342.08
Depreciation 66.17 65 64.32 63.79 63.27
Excise Duty -- -- -- -- --
Admin. And Selling Expenses -- -- -- -- --
R & D Expenses -- -- -- -- --
Provisions And Contingencies -- -- -- -- --
Exp. Capitalised -5.66 -1.97 -2.93 -1.71 -5.52
Other Expenses 594.03 556.81 509.87 268.55 561.26
P/L Before Other Inc. , Int., Excpt. Items & Tax 1,457.93 1,664.62 1,201.91 344.74 1,189.49
Other Income 283.6 369.18 285.8 337.88 532.65
P/L Before Int., Excpt. Items & Tax 1,741.53 2,033.80 1,487.71 682.62 1,722.14
Interest 2.04 1.02 2.65 0.95 0.91
P/L Before Exceptional Items & Tax 1,739.49 2,032.78 1,485.06 681.67 1,721.23
Exceptional Items -- -- -- -- --
P/L Before Tax 1,739.49 2,032.78 1,485.06 681.67 1,721.23
Tax 407.42 476.5 346.86 153.63 410.94
P/L After Tax from Ordinary Activities 1,332.07 1,556.28 1,138.20 528.04 1,310.29
Prior Year Adjustments -- -- -- -- --
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For the Period 1,332.07 1,556.28 1,138.20 528.04 1,310.29
Comment on Income Statement

From the above quarter wise result we can see that there was a sharp decrease in
sales compare to the March quarter of FY 2019-20. The sale of March 2021 quarter
was Rs.6815.85 Cr. but in June 2020 quarter it was Rs.3079.24 cr. only. This is
because of the lockdown and fall in demand. We can see the same result in case of
Net profit also; it is decreased by more than 50%.
Due to lockdown the production at Aurangabad was effected badly, the company is
having one production house at the place.
But we can also see that as the lockdown was lifted the sales as well as the net profit
also increases.
If we compare the sales between June 2020 quarter and Mar 2021 the sales is
increased by approx. 3 times and the same kind growth we can find in case of Profit
also.
Consumption of Raw Material, purchase of Traded goods, the two major

expenditure is also in increasi9ng trend.
Overall we can say that the company’s sales and profit is in increasing trend and
quickly recovering the effect of lockdown and economic slowdown.
Hero Moto Corp
Income Statement
Particulars Mar '21 Dec '20 Sep '20 Jun '20 Mar '20
8,685.9 9,775.7 9,367.3 2,971.5 6,238.3
Net Sales/Income from operations 7 7 4 4 9
Other Operating Income -- -- -- -- --
8,685.9 9,775.7 9,367.3 2,971.5 6,238.3
Total Income From Operations
7 7 4 4 9
EXPENDITURE
6,331.6 6,983.1 6,689.0 1,871.4 4,059.9
Consumption of Raw Materials
5 4 9 5 2
Purchase of Traded Goods 30.46 -- -- -- --
Increase/Decrease in Stocks -244.84 -91.96 -29.14 222.48 260.03
Power & Fuel -- -- -- -- --
Employees Cost 488.44 516.67 511.24 382.37 435.42
Depreciation 163.12 169.84 173.15 170.76 174.7
Excise Duty -- -- -- -- --
R & D Expenses -- -- -- -- --
Exp. Capitalised -- -- -- -- --
Other Expenses 869.11 954.29 909.74 387.19 823.14
P/L Before Other Inc. , Int., Excpt. Items & 1,048.0 1,243.7 1,113.2
-62.71 485.18
Tax 3 9 6
Other Income 87.38 202.68 141.33 148.46 169.47
1,135.4 1,446.4 1,254.5
P/L Before Int., Excpt. Items & Tax 85.75 654.65
1 7 9
Interest 6.29 4.65 4.64 6.26 4.06
1,129.1 1,441.8 1,249.9
P/L Before Exceptional Items & Tax 79.49 650.59
2 2 5
1,129.1 1,441.8 1,249.9
P/L Before Tax 79.49 650.59
2 2 5
Tax 264.15 357.35 296.5 18.18 29.88
1,084.4
P/L After Tax from Ordinary Activities 864.97 953.45 61.31 620.71
7
1,084.4
Net Profit/(Loss) For the Period 864.97 953.45 61.31 620.71
7
From the above quarter wise result we can see that there was a sharp
decrease in sales compare to the March quarter of FY 2019-20. The sale
of March 2021 quarter was Rs. 6238.39 Cr. But in June 2020 quarter it
was Rs.2971.54 cr. only. This is because of the lockdown and fall in
demand. We can see the same result in case of Net profit also; it is
decreased by approx.10 times.
Hero MotoCorp currently has five manufacturing facilities in India and

these are located in Haridwar(Uttarkhand), Dharuhera (Haryana),
Neemrana (Rajasthan), Vadodara (Gujarat) and Gurgaon (Haryana). All
was temporarily closed due to lockdown.
But we can also see that as the lockdown was lifted the sales as well as
the net profit also increases.
If we compare the sales between June 2020 quarter and Mar 2021 the
sales is increased by approx. 4 times and the growth in sales even more
than sales.

expenditure is also in increasing trend.
Overall we can say that the company’s sales and profit is in increasing
trend and quickly recovering the effect of lockdown and economic
slowdown.
Maruti Suzuki
Income Statement
Particular Mar-21 Dec-20 Sep-20 Jun-20 Mar-20
22,958.6 22,236.7 17,689.3 3,677.5 17,185.7
Net Sales/Income from
0 0 0 0 0
operations
Other Operating Income 1,065.10 1,221.10 1,055.20 429 1,013.00
24,023.7 23,457.8 18,744.5 4,106.5 18,198.7
Total Income From Operations
0 0 0 0 0
EXPENDITURE
12,066.2 11,043.1 1,325.3
Consumption of Raw Materials 8,862.30 8,313.60
0 0 0
Purchase of Traded Goods 6,050.50 5,754.20 4,514.40 928.1 4,771.50
Increase/Decrease in Stocks -365.8 218.3 -262.4 683 -293.7
Power & Fuel -- -- -- -- --
Employees Cost 900.3 945.5 826.8 730.3 819.4
Depreciation 741 741.3 765.9 783.3 823
Excise Duty -- -- -- -- --
R & D Expenses -- -- -- -- --
1,303.2
Other Expenses 3,381.40 3,270.60 2,869.80 3,041.50
0
-
P/L Before Other Inc. , Int.,
1,250.10 1,484.80 1,167.70 1,646.7 723.4
Excpt. Items & Tax
0
1,318.3
Other Income 89.8 993.7 602.5 880.4
0
P/L Before Int., Excpt. Items &
1,339.90 2,478.50 1,770.20 -328.4 1,603.80
Tax
Interest 32.4 28.7 22.4 17.3 28.3
P/L Before Exceptional Items &
1,307.50 2,449.80 1,747.80 -345.7 1,575.50
Tax
P/L Before Tax 1,307.50 2,449.80 1,747.80 -345.7 1,575.50
Tax 141.4 508.4 376.2 -96.3 283.8
P/L After Tax from Ordinary
1,166.10 1,941.40 1,371.60 -249.4 1,291.70
Activities
Net Profit/(Loss) For the Period 1,166.10 1,941.40 1,371.60 -249.4 1,291.70
decrease in sales compare to the March quarter of FY 2019-20. The sale
of March 2021 quarter was Rs. 18198.70 Cr. But in June 2020 quarter it
was Rs. 4106.50 cr. Only. This is because of the lockdown and fall in
demand. We can see the decline in case of Net profit also.
Due to lockdown Maruti Suzuki India reports nil domestic sales in April
2020.
And due to lockdown Maruti Suzuki India had suspended production at its
Gurugram and Manesar facilities on March 22 amid lockdown.
sales is increased by approx. 5 times and the same kind growth we can
find in case of Profit also.

slowdown.
Tata Motors
Income Statement
2020-21 2019-20
19,826.57 14,507.50 9,591.18 2,634.14 9,653.80

Other Operating Income 219.33 123.1 76.92 52.73 79.07
EXPENDITURE
Increase/Decrease in Stocks 387.76 -591.5 -174.86 309.56 473.6
Power & Fuel -- -- -- -- --
Employees Cost 1,081.76 1,105.89 1,058.60 966.74 1,149.61
Depreciation 964.16 947.64 909.92 859.89 984.13
Excise Duty -- -- -- -- --
R & D Expenses -- -- -- -- --
Exp. Capitalised -257.82 -180.02 -201.99 -177.7 -300.83
Other Expenses 2,396.95 1,970.17 1,424.25 820.85 2,367.81
P/L Before Other Inc. , Int., Excpt. Items & - -
499.52 -92.67 -773
Tax 1,722.91 1,926.93
Other Income 260 206.65 241.98 134.33 268.92
- -
P/L Before Int., Excpt. Items & Tax 759.52 113.98 -531.02
1,588.58 1,658.01
Interest 614.86 656.22 634.67 552.8 557.05
- - -
P/L Before Exceptional Items & Tax 144.66 -542.24
1,165.69 2,141.38 2,215.06
-
Exceptional Items 1,545.62 -58.3 -46.36 -48.88
2,570.77
- - -
P/L Before Tax 1,690.28 -600.54
1,212.05 2,190.26 4,785.83
Tax 44.59 37.5 0.4 0.38 85.22
- - -
P/L After Tax from Ordinary Activities 1,645.69 -638.04
1,212.45 2,190.64 4,871.05
- - -
Net Profit/(Loss) For the Period 1,645.69 -638.04
1,212.45 2,190.64 4,871.05
Comment on Income Statement:-
decrease in Sales compare to March quarter of FY 2019-2020. The sale of
March 2020 quarter was RS. 9,732.87 Cr. But in June 2020 quarter it was
Rs. 2,686.87 Cr. Only. This is because of lock down and fall in demand. We
can see the same result in case of Net Profit also; it is decreased by more
then 40%.
find in case of profit also.
Consumption of Raw Material, purchase of traded goods, the two major

expenditure is also in increasing tread.
trend and quality recovering the effect of lockdown and economic
slowdown.
Mahindra & Mahindra
Income Statement
Particulars Mar-21 Dec-20 Sep-20 Jun-20 Mar '20
13,512.44 14,215.90 11,710.46 5,602.18 9,143.72

EXPENDITURE
Increase/Decrease in Stocks -1,202.91 14 -220.66 1,169.57 -290.98
Power & Fuel -- -- -- -- --
Employees Cost 723.55 756.05 701.16 678.04 617.8
Depreciation 558.73 571.39 554.48 548.39 583.62
Excise Duty -- -- -- -- --
R & D Expenses -- -- -- -- --
Exp. Capitalised -24.06 -31.42 -38.24 -- --
Other Expenses 1,333.65 1,170.90 1,065.40 586.83 1,243.94
P/L Before Other Inc. , Int., Excpt. Items &
1,230.59 1,706.41 1,335.35 0.77 551.2
Tax
Other Income 130.99 569.94 392.59 127.79 314.71
P/L Before Int., Excpt. Items & Tax 1,361.58 2,276.35 1,727.94 128.56 865.91
Interest 95.16 99.71 109.14 66.87 33.47
P/L Before Exceptional Items & Tax 1,266.42 2,176.64 1,618.80 61.69 832.44
-
Exceptional Items -886.66 -1,691.48 -1,149.46 64.33
2,780.47
-
P/L Before Tax 379.76 485.16 469.34 126.02
1,948.03
Tax 331.32 454.23 392.15 13.92 554.39
-
P/L After Tax from Ordinary Activities 48.44 30.93 77.19 112.1
2,502.42
-
Net Profit/(Loss) For the Period 48.44 30.93 77.19 112.1
2,502.42
Comment on Income Statement:-
decrease in sale compare to the March Quarter of FY 2019-2020. The sale
of March 2020 quarter was Rs. 9,143.72 Cr. But in June 2020 quarter it
was Rs. 5,602.18 Cr. Only. This is because of the lockdown and fall in
demand. We can see the same result in case of Net profit also; it is
decreased by more then 70%.
But we can also see that as the lockdown was lifted the sale as well as the
Net profit also increases.
If we compare the sale between June 2020 quarter and Mar 2021 the
sales in increased by approx 2 times and the same kind growth we can
Consumption of Raw Material purchase of Traded goods, the two major

Overall we can say that the company’s sale and profit is in increasing
slowdown.
TVS Motors
Income Statement
5,321.93 5,391.39 4,605.49 1,431.73 3,481.42

EXPENDITURE
Consumption of Raw Materials 3,994.13 4,018.73 3,602.72 891.31 2,670.63
Purchase of Traded Goods 74.67 72.31 56.99 20.24 59.6
Increase/Decrease in Stocks -58.97 12.01 -135.1 174.81 -120.47
Power & Fuel -- -- -- -- --
Employees Cost 268.08 269.1 214.27 197.02 222.67
Depreciation 136.6 132.92 133.08 91.08 124.34
Excise Duty -- -- -- -- --
R & D Expenses -- -- -- -- --
Other Expenses 507.91 508.1 436.49 197.17 404.14
P/L Before Other Inc. , Int., Excpt. Items &
399.51 378.22 297.04 -139.9 120.51
Tax
Other Income 6.94 12.35 11.09 2.59 25.11
P/L Before Int., Excpt. Items & Tax 406.45 390.57 308.13 -137.31 145.62
Interest 19.53 29.07 40.71 52.29 23.46
P/L Before Exceptional Items & Tax 386.92 361.5 267.42 -189.6 122.16
Exceptional Items -- -- -- -- -32.33
P/L Before Tax 386.92 361.5 267.42 -189.6 89.83
Tax 97.68 95.88 71.17 -50.53 15.96
P/L After Tax from Ordinary Activities 289.24 265.62 196.25 -139.07 73.87
Net Profit/(Loss) For the Period 289.24 265.62 196.25 -139.07 73.87
Comment of Income Statement:-
decrease in sale compare to the March quarter of FY 2019-2020. The sale
of March 2020 quarter was 3,481.42 Cr. But in June 2020 quarter it was
Rs.1,431.73 Cr. Only. This is because of the lockdown and fall in demand.
We can see the same result in case of Net Profit also; it is decreased by
more then 50%.

Overall we can say that the company’s sale and profit is in increasing
slowdown.
Future opportunity of Indian automobile sector:-
1. Original Equipment Manufacturers(OEMs): -The automotive

industry in India, comprising of Original Equipment
Manufacturers(OEMs) and auto component manufacturers, is one
of the largest manufacturing Industries in the country, contributing
to 7.5 percent of the national GDP.
Compact and mid-size SUVs to gain strength: SUVs have gained a
significant share in the personal cars market in the last five fiscal
years. Compact and mid-sized SUV segments have led to a
substantial increase in sales of SUVs as they are better aligned with
the expectations of Indian consumers and road conditions.
2. Rising adoption of personal mobility:- COVID-19 has changed

the preferred mode of commute among passengers, with 56% of
people choosing to use a personal vehicle over a public or shared
transport as per a recent survey done by PGA Labs. This increased
preference for personal mobility vehicles is expected to drive
vehicle demand in the post-COVID world.
3. Future of electric auto sector :- The industry can move towards

a clean transport and mobility system and bring about self-
sufficiency unrenewable energy. The transition to electric mobility
is not limited to the environment but also about augmenting jobs
and growing the economy. With battery prices reportedly falling
73% since 2010, electric cars are expected to be as cheap as fuel-
powered cars in the foreseeable future. The International Energy
Agency cites that by 2020 up to 20 million electric vehicles will ply
the road, a number that is expected to go up to 70 million by 2025.
 Friendly:- Electric Vehicles are 100 percent eco-friendly. They do
not emit toxic gases or smoke in the environment which leads to
global warming and helps to reduce pollution.
 Less Maintenance:- Electric vehicles require less maintenance
than conventional vehicles as there are fewer fluids (like oil and
transmission fluid) to change and fewer moving parts.
4. India is the 2nd largest population county. That wise it’s a good
opportunity for Indian automobile industry.. Due to more
population its impact on increasing the sales margin in automobile
sector in India.
What type of challenges are face Indian Automobile
Sector in Future:-
As the automotive world gears up to answer these questions,
there are few key challenges that form the crux of these
indispensable areas of concern in the Indian automotive world:
 The ever-expanding Chinese market :-one of the

biggest challenges of automakers outside China, is the risk of
competing with China. In the last fifteen years, China has
been the leading automotive market. The volume growth has
helped the country to overcome other structural and
competitive challenges. The biggest challenge for the
planners of the automotive market is to plan a strategy
keeping in mind China’s outlook.
 The evolution of connected cars :- connected are the biggest

transformational changes in the automotive industry, but it is
also one of the biggest unknowns. The concept of connected
cars serve as a communication hub that receives and
transmits data from its surroundings. However, this
technology is still in such a nascent stage that it is creating
uncertainties and questions such as who will buy the
car, who will deliver these services, whether the current
automakers will be able to navigate through all these
uncertainties keep plaguing the automotive world.
 Increased competition :- of all the myriad issues facing the

automotive world, one of the pressing problems is the sales
demand flattening in mature markets like Europe and Japan
and competition rising from other manufacturers. The
slowdown is sales is directly proportional to the increasing
competition.
 Balancing the demands of technology and government :- the

major global automotive markets have been facing stringent
legislation focusing on controlling carbon dioxide emission
and other exhaust gas emissions. This is done to improve fuel
economy. One of the key challenges in the industry is to make
the right powertrains and technology choices to cater to
changing social preferences in a changing regulatory
environment.
 Balancing the demands of technology and government :- the

major global automotive markets have been facing stringent
legislation focusing on controlling carbon dioxide emission
and other exhaust gas emissions. This is done to improve fuel
economy. One of the key challenges in the industry is to make
the right powertrains and technology choices to cater to
changing social preferences in a changing regulatory
environment.
Recommendation
As per my study I have found that there are some loopholes in
the selected company for our project. Below are some
recommendation that found in best of my knowledge.
1. The Gross Profit and Net Profit ration of Tata Motors is in negative.
This is not acceptable for a company of Tata Group. So to recover
this, company should go for a cost cutting so that company can earn
more than its expenses and earn profit.
2. Some of the company is like Maruti Suzuki and Tata Motors is

having poor Current and Liquid Ratio, the company is having less
current assets compare to its current liabilities. So, that company
should focus on to reduce the current liabilities by making regular
payment to the creditors and liabilities.
3. Almost all companies are having very minimum debts compare to its
equity, that’s why the Debt-Equity Ratio is very low. But to improve
the weightage of the Balance Sheet the company need to improve
the debt figure. Them can take loans or issue debentures etc. in this
way they can make the payment to its creditors and current
liabilities, this will in the other side can improve the Current Ratio
and Liquid Ratio.
4. The Inventory and Debtors Turnover ratio of all the company is very
good. The inventory is rotating very nicely and collecting the money
from the customer is regular time, my recommendation is to
continue the trend.
5. The future of autonomous and electric vehicles is being marked with

cleaner and quicker transport, accelerating much-needed
greenhouse gas emissions reductions in the transport sector.
Considering a country like India, where there is a high dependency
on oil imports and pollution remains a challenge, autonomous
vehicles and EVs offer a one-way solution for two major problems.
Recently Tesla Inc. has started making a factory at Bangalore, for
electric car. So the Indian company also start making the electric car
and bike, so that they can become the early starter and capture the
market.
6. Two-wheelers and passenger vehicles dominate the domestic Indian

automobile market and account for 81% and 13% of total unit sales,
respectively. Passenger car sales are dominated by small and mid-
sized cars.
BIBLIOGRAPHY
Website
1. Money Control site.
2. The website of the company selected for our study.
3. Economic Times news
4. Different Financial Site
Text Book-
1. Financial Management- I.M Pandey
2. Practice on Management Accounting (Basu&
Bhattacharya)
3. Financial Management Theory & Practice (Psasanna
Chandra)

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“Ratio Analysis of Indian Auto Mobile Sector and

Analysis of Impact of Lockdown on Auto Mobile

In fulfilment of the requirement for the degree of

Bachelor of Business Administration

Submitted to: prof. Sandip karmakar (project supervisor )

Prof. Robin kr. Agarwal (HOD Management)

Submitted by : Santanu Modi (32205018018)

Souvik chatterjee (32205018010)

Souvik patra (32205018009)

HISTORY OF THE INDIAN AUTOMOBILE SECTOR 10

The introduction to the Auto Mobile Companies 11

Limitation of Ratio Analysis 17

Submitted in partial fulfilment of the requirements for

Place: ASANSOL Souvik chattterjee

Is approved and is acceptable in quality and form.

Prof. Sandip karmakar Prof. Robin kr Agarwal

Project supervisor HOD

Last but not least it would be unfair if I don`t extend my indebtedness to

The purpose of study are mention below:

 To study and analyse the financial position of the company through

A SMALL INTRODUCTION TO THE INDIN AUTOMOBILE SECTOR

HISTORY OF THE INDIAN AUTOMOBILE SECTOR

Soon after independence 1947, Government of India tried to create an automotive

The introduction to the Auto Mobile Companies-

Tata Motors has auto manufacturing and vehicle plants in Jamshedpur,

 Its was founded by : J R D Tata in 1945.

 Chairman :R. C. Bhargava.

Hero Moto Corp

 What is Ratio Analysis?

 What is Ratio Analysis?

Ratio analysis is the process of determining and interpreting numerical

Ratio analysis compares line-item data from a company's financial

 Advantages of Ratio Analysis

 To measure the liquidity position : The purpose of ratio analysis is to

 To know the solvency position: Ratio analysis is helpful for assessing

 Operating efficiency or turnover of the firm: The ratios are helpful in

 Limitation of Ratio Analysis

 Inadequate Standard: It is always a challenging job to find an adequate

 Choosing of Factors: It is difficult to evaluate the differences in the

 Price variance: While making comparisons of ratios, due allowance

 Difference in definition: Comparisons are also become difficult due to

Liquidity Ratio Leverage Ratio Activity Ratio Profitability Ratio

Earning Per Share Dividend Yield

 Gross Profit Margin

INDICATIONS:- Gross profit ratio shows the proportion of profits

 Net Profit Ratio

Net profit after tax

Return on Capital Employed

Net Capital Employed

Indication: - It indicates the companies ability to pay short term

Current Assets - Inventories

INDICATION:-The Liquid Ratio Is Better to indicates the Liquidity position of a

 Inventory Turnover ratio :-

Cost of goods sold

INDICATION:- Inventory Turnover ratio indicates the efficiency of the firm in

 Debtors Turnover Ratio

Debtors Turnover ratio = Credit Sales

 Debt Equity Ratio

Debt Equity Ratio= Total Debt

INDICATION :- It indicates the relationship between Total interest bearing

Gross Profit Margin-

Net Profit Margin: -

Return on Capital Employed:-