1.

1 MEANING OF CASH:

Cash, such as banknotes and coins, can be in any form of currency. It should have legal
recognition and should be identified in the market in order for any object to be treated as cash.
When its users accept currency, it means that it has trading value.

Cash is money in the form of banknotes and coins issued by a country's government under
its guidance and control.

Bills, coins, bank deposits, money orders, and checks are currency. In order to purchase
products and services or to remove commitments, cash is used. Post-dated checks and note
receivables are products that do not fall under the definition of cash. Instead of bills and coins,
most cash arrangements are electronic, since cash balances can be guaranteed in the computer
records for investment accounts.

In the balance sheet, cash is scheduled first, since the reporting series is in order by
liquidity, and cash is the most liquid of all assets. Cash equivalents, which apply to assets that can
be readily converted into cash, are a related accounting concept. If it regularly deals with cash
matter, an organization is more likely to maintain a significant amount of cash on hand, and is less
likely to retain a lot of cash if it has an outstanding cash forecasting system and can thus invest
with assurance in more illiquid yet higher elastic expenditure.

1.2 FUNCTIONS OF CASH

There are various functions of cash which are as follows:

 Consumers spend money to fulfil their basic needs, such as food, clothes, shelter,
schooling, and many more. They also spend money to fulfil their subsidiary requirements,
such as entertainment, purchasing expensive goods, travelling to different destinations, etc.
 In the system of income generated by the provision of goods and services to customers,
entrepreneurs build up cash. They use this benefit for business growth or creation. A certain
amount of this benefit is then distributed among investors and is often used to meet
contingencies to preserve reserves.

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  Employees or employees earn salaries, short-term benefits and allowances related to
medical and travel allowances, and long-term benefits such as provident funds, gratuities,
pensions, etc. for their jobs.

1.3 MEANING OF CASH FLOW:

In simple terms, cash flow can be defined as the flow of finance in and out of the company
in the month. Cash coming in from clients or consumers is when the goods or services of the
company are purchased. Any of the cash flow is pending from collections of accounts receivable
if clients do not pay at the time of payment. Cash going out of your business is in the form of
payments for expenses, like rent or a mortgage, in monthly loan payments, and in payments for
taxes and other accounts payable.

Cash shortages are one of the reasons why small businesses are inefficient. Cash flow is
purely the flow of money into the business. Cash is paid out in exchange for the labor and resources
that are used to produce goods and services that can be sold in the case of companies that are
managed for profit. In order to help fund the development process, the profits that come through
the company will then be used.

For non-profit organizations such as charities, colleges, and hospitals that are expected to
meet a number of incomplete expenditures linked to the provision of their services, cash flows are
also essential. Cash flow management is one aspect of a well-built enterprise known as accountable
as working capital supervision, which refers to the operating liquidity that an organization has,
may have assets and efficiency, but is short of liquidity if its assets cannot be turned into cash
voluntarily.

Working capital is necessary to certify that the administration is capable of carrying on its
activities and that it has sufficient funds to meet labor payments and any rising short-term debt
requirements. Working capital management provides oversight of the following four elements of
the activities of a company, namely:

 Inventories (stock, work-in-progress and finished goods)

 Accounts receivable (debts that are owned to the organization)
 Accounts payables (money the organization owes to its suppliers)
 Cash

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1.4 STRUCTURE OF CASH FLOW STATEMENT

A significant financial report has always been the Statement of Cash Flows, but over the
years it has been called various names. The "Statement of Changes in Financial Position,"
"Statement of Sources and Applications of Funds," and "Changes in Working Capital."

The last prepared financial statement is the statement of cash flows. It applies to both cash
inflows and outflows over a period of time. This implies that the cash flow statement reports the
adjustments in cash from the beginning to the closing phases of a session, usually a year. It's
important to note that only cash transactions are recorded in the cash flow statement.

In the statement of cash flows, three parts are combined. 'Cash flows from operating
activities' are mentioned in the first segment. The second section covers "cash flows from
investment activities" and the third section covers "cash flows from funding activities."

Cash flow from operating operations is the core portion of the cash flow statement. Many
cash transactions that settle on net profits are included. Such examples of cash inflows from
operating actions are: sales cash, interest payment cash, dividend cash, and credit sales cash
collections. Cash outflows from operating activities include payroll spending in cash, supply costs
in cash, interest payments in cash, and tax payments in cash.

The investing section is the second component of the statement of cash flows. Cash transactions
that impact long-term assets, such as assets, plants, and equipment, are included in the investment
portion. It also includes the purchase and selling, rather than trading shares, of short-term assets
and the lending and collection of receivables on notes. Cash obtained from the sale of long-term
properties, cash earned on large loans, and cash received from short-term trading investments are
some examples of cash inflows from investing. Cash outflows from investment activities include
money used to buy long-term properties, money loaned to others, and money used to buy short-
term funds.

The last segment on the statement on cash flows is the section on funding. Cash transactions
that impact long-term liabilities and equity are included in the funding portion. Cash contributions
from owners, cash obtained from issuing bonds or payable notes, and cash received from issuing
stocks are some examples of cash inflows from financing. The payment of cash dividends, cash

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used to buy treasury stock, cash paid to withdraw bonds or notes payable include cash outflows
from funding activities.

The transactions to be listed in the Cash Flow Statement are straight forward. Transactions that
connect funds have to be registered, as well as those transactions that subtract funds from company
capital. These transactions are then divided into three buckets: transactions, investments, and debt
acquisition or withdrawal (financing).

1.5 SIGNIFICANCE OF THE CASH FLOW STATEMENT:

In order to understand why the Cash Flow Statement is relevant, we need to define the word
"working capital" as the diversity between current assets and current liabilities. Businesses run on
a loop aimed at creating more responsible working capital to grow. For instance, cash is used to
buy inventory, inventory is sold at a profit, and thus creates additional working capital that can be
used for additional inventory.

The following are examples of the sources and the uses of working capital (funds):

 Sources:

o Net Income from Operations

o Sale of fixed assets (land, buildings, equipment)

o Acquisition of long term debt

o Sale of stock

 Uses:

o Cash dividends paid

o Purchase of fixed assets

o Reducing or retiring long term debt

o Stock repurchases

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The Declaration of Cash Flows gives the reader very useful in the series relating to the company
when reviewing a company's financial statements; items such as its competitiveness and
organizational behaviors towards stock sales and dividend issuance. It can also tell the booklover
how long-term debt is done and whether it is a pleasant place to reinvest in capital assets. This one
account may sometimes suggest the company's leaning in the direction of overall financial strength
and how to fund growth.

Like the Income Statement, the Statement of Cash Flows covers an accounting period, compared
to the Balance Sheet that reports on a fixed date. The Cash Flow Statement shows why the things
on the balance sheet have changed over the time in question.

1.6 PURPOSE OF CASH FLOW STATEMENT:

The object of the Cash Flow Statement is to provide details on the gross receipts and gross
payments of a business for a precise period of time.

In the cash flow statement, the gross receipts and gross payments are listed according to
one of the following classifications: operating activities, investment activities and financing
activities. The net change from these three classifications over the reporting period should be equal
to the change in the cash and cash equivalents of a company. For example, between the December
31, 2015 and December 31, 2016 balance sheets, the cash flow statement for the calendar year
2016 will report the causes of the difference in the cash and cash equivalents of a business.

In addition to the cash amounts stated as operating, spending and financing activities, other
details, including the amount of interest charged, the amount of income taxes paid and any
substantial expenditure and financing activities not involving the use of cash, must be recorded in
the cash flow statement. The statement of cash flows and the financial statement and balance sheet
of a company have to be distributed.

1.7 Use of Cash Flow Statement to manage the Working capital of the organization:

Profitable companies unexpectedly collapse several times. Generally, this loss is

exacerbated by a lack of working capital. This lack of working capital will render a business unable

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to pay its employees or suppliers, even though there are sufficient sales and profits. Except in
situations where these short-term obligations may be met, the degeneration of cash flow
dramatically threatens the capacity of a business to plough into the company and, ultimately,
thrive.

One of the most important financial statements for a venture or production is a cash flow
statement. The statement can be as simple as a one-page summary or can involve multiple
schedules that provide an innermost statement with detail. A cash flow statement is a record of the
cash flows into the company or venture and out of it. Think of it at the bank as your inspection
account. The cash inflows are deposits and the cash outflows are withdrawals. Your net cash flow
at a particular point in time is the balance in your bank account.

A cash flow statement is a record of cash flows that happened during the preceding period
of accounting. A cash flow budget is called a prediction of potential money flows. You will flow
the budget to your checking account as a prediction of the future deposits and withdrawals. Not
only is a cash flow statement confused by the quantity of cash flows, but also the timing of the
flows. With several time spans, many cash flows are constructed. For example, monthly cash
inflows and outflows over a year's period may be listed. The cash balance left at the end of the
year is not only expected, but also the cash balance for each month.

Working capital is an important factor in the analysis of cash flow. In order to smooth the
progress of business operations and transactions, it is defined as the sum of money needed and is
intended as current assets less current liabilities. Computing the amount of working capital gives
you a fast review of the company's liquidity over the prospective accounting period. It may not be
decisive to build a cash flow budget if working capital appears to be sufficient. But if working
capital tends to be insufficient, a financial plan for cash flow will highlight liquidity issues that
may arise during the coming year.

1.8 IMPORTANCE OF CASH FLOW:

Cash flow defines the transfer of money into and out of the corporation through its revenue-
generating and expenditure-acquiring actions. Cash flow occurs in three ways: investment,
operational, and funding operations. These activities produce a cash flow into and out of the

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business. Investment activities contribute to a cash inflow from the selling of properties and the
outflow of capital expenditure outstanding. Operational operations result in the expenditure or
collection of cash from the company's internal activities. Cash flow funding comes from
performance such as dividend pay-outs, issued bonds, share buying and equity problems, among
others.

In the sense that it shows the company's point of liquidity based on the capital movement
inside it, cash flow is very important to business. Cash flows help to determine a company's level
of constancy in terms of liquidity and can help prevent bankruptcy. The declaration of cash
movement that can be used in the decision-making process is also issued. The cash in and outflows
often give the rate of return of the investment activities of an organization in which it is possible
to use projects in command to assess its returns. From the cash flow details, internal rate of return
and net present value may be intended.

Cash flows also provide a selection criterion to evaluate the income of a company,
particularly if accrual accounting tends to give different results, thereby helping to achieve more
accurate business data extraction. In addition, by checking where the cash inflows come from, cash
flow explains the importance and supremacy of money. Money is thus a high-quality income if
more income comes from cash rudiments. Cash flow also helps to determine a company's risk and
therefore aids in risk management through the individual ventures.

Liquidity of a corporation or any business is extremely vital for expansion and success both
within the short run and end of the day perspectives. There are numerous ways a corporation can
improve liquidity counting on the extent and range of business. Company can earn extra money
from large sums of cash it holds in banks which pays interest income on cash balances placed in
convinced sorts of accounts. this will be source of additional cash which will be withdrawn after
specified period. a further approach would even be cutting the overload costs that are normally
incurred by the business like marketing expenses, meeting allowances and other non-significant
expenses. this may increase cash availability for fast use and may help in capturing opportunities
that come unexpectedly.

Inventory management also help to urge better liquidity by ensuring that surplus stocks aren't
reserved within the shelves and stock also are whenever they're obligatory by customers. Having
non affecting stock can put pressure on take advantage warehousing and other upholding actions.

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We of just in time approach can search cut and increases accessible cash. Treatment of debtors can
also help or deform liquidity of a business. Keeping debtors on toes in paying up and dropping
sales on credit will amplify cash reserves and liquidity.

1.9 ACCOUNTING STANDARDS FOR CASH FLOW STATEMENT:

1.1.Accounting Standard 3- Cash Flow Statement.

A business wants take advantage every phase of business units. A business needs cash to cause its
operations, apparent its obligations and in any case meet the expectations of its investors.
Stakeholders are enquiring to understand how the business generates and uses cash and cash
equivalents. accounting principle 3 which is income statement isn't obligatory for little and
medium sized companies. However, they encouraged to suits the quality.

The objectives of this standard are to supply information on historical changes in cash and cash
equivalents with facilitate of an income statement.

A cash flow statement answers the following very important questions.

 Where did cash come from during the period?

 What was the cash used for during the period?
 What was the change in cash balance during the period?

The accounting principle 3 prescribes that the income statement should be equipped in accordance
with the quality. All enterprises should give such a press release as an important a part of their
financial statements for every period that financial statements are prepared. Further, all enterprises
that equipped financial statements in accordance IFRS (international financial reporting standard)
are required to organize an income statement. The equivalent standard under IFRS in IND AS 7.

The explanation of money and cash equivalents may be a significant a part of preparation and
understanding of money flow statement.

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Cash consists of money available and demand deposits, coins and notes of an enterprise. Cash
equivalents are short term, highly liquid investment that are eagerly converted into a known
amount of money and which are subject to an irrelevant risk of change in value.

Guidance notes states that an investment are often usually defined as debt instrument if its maturity
is 3 months or less from the date of acquisition. Equity investments are usually excluded.
Preferences shares particularly due for redemption within 3 months are often included. Bank
overdrafts that are repayable on demand are included.

Purpose

The aim is to provide information through a cash flow statement about the historical changes in a
venture's cash and cash equivalents. Classification of cash flows into activities of service,
acquisition, and funding.

Scope:

Scope a company should prepare a cash flow statement and present the same for each cycle
alongside the financial statement

Relevant Definition:

The applicable description of cash includes banks' cash on hand and demand deposits. Cash
equivalents are highly liquid short-term assets that are voluntarily converted into accepted cash
amounts. Cash flows are cash and cash-equivalent inflows and outflows.

The standard revenue generating results of the company are the appropriate descriptions of
operational activities. Achieving and withdrawing long-term assets and other savings not
contained in cash equivalents is an investment practice. Financing activities are activities which
result in changes in the size and composition of the capital of the owner and the enterprise's
borrowings.

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PRESENTATION OF CASH FLOW STATEMENT:

The income statement should report cash flows during the amount. The cash flows need to be
classified activity wise into operating, investing and financing activities.

the foremost important reason for the preparation of the income statement is that the earnings
report of an enterprise is usually prepared on an accounting and it's going to show profits within
the earnings report but the cash received out of those profits could also be low to run the business
or vice-versa.

Cash Flow from Operating Activities:

The earnings report should report cash flows during the quantity. The cash flows got to be
classified activity wise into operating, investing and financing activities.

the foremost important reason for the preparation of the income statement is that the income
statement of an enterprise is typically prepared on an accounting and it's getting to show profits
within the earnings report but the cash received out of these profits could even be low to run the
business or vice-versa.

Examples-

 Cash received from the sale of goods and services.

 Cash receives from commission, fees, royalties etc.

 Cash paid to suppliers to purchase raw material etc.

 Payment of expenses like wages, salaries, commission etc.

 Payment and refund of tax.

Cash Flow from Investing Activities:

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For completing business effortlessly, an enterprise acquires future assets like machinery, land and
building. Likewise, old assets are sold and new are purchased. They occasionally also invest
unoccupied funds outside the business to urge additional earning. All this leads to inflow and
outflow of money. These flows of money are termed as cash flows from investing activities.

The income associated with investing activities is those from acquirement and removal of future
assets and investments that aren't cash equivalents. Interest paid or received from future loans or
investments should be disclosed under this head. Cash flows concerning attainment and clearance
of subsidiaries or other business units should be disclosed independently under this head.

For completing business efficiently, an enterprise acquires future assets like machinery, furniture,
land and building. Equally old assets are sold and new are purchased. they often also invest idle
funds outside the business to urge supplementary earnings. All this leads to inflow and outflow of
money. Theses flows of money are termed as Cash flows from Investing Activities.

Examples-

 Cash paid to acquire fixed assets e.g. machinery, land etc.,

 Cash paid to purchase investments e.g. Shares and debentures of other companies.

 Cash receipts from the disposal of fixed assets.

 Cash receipts as dividend or income on investments outside the concern.

 Cash receipts from the sale of investments

 Cash receipts/ payments related to future contracts, forward contracts, option contracts,
swap contracts except when the contracts are held for trading purposes or the
receipts/payment should have classified as financing activities.

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Cash Flow from Financing Activities:

Financing activities are those acts which lead to a change in the size and composition of the capital
of the owner and the administration's borrowing. The separate declaration of cash flows resulting
from funding operations is crucial because it is beneficial for fund providers to forecast claims on
potential cash flows.

The cash flow from funding operations is the product of share capital issuance. Long term
borrowing proceeds. Long term borrowing repayment. Transactions performed to arrange capital
and other sources of funding for the company are referred to as operations of financing.
Cash flow resulting in improvements in the company's capital and borrowing structure is
categorized under this heading. The dividend paid is often compensated by the funding operation
and separately disclosed. An organization that complies with this standard should disclose cash
flow through direct or indirect means from operating activities.

Primary classes of gross cash receipts and payments are disclosed under the direct process. This
approach helps to predict potential cash flows that, under indirect approaches, are not possible.
The information disclosed here is available from the company's accounting reports or by changing
sales, sales costs, profit and loss account expenditures and revenue to alter the inventor's account.

Net cash from operating activities is achieved when the indirect approach is implemented by
adjusting the net benefit or loss for the effect of adjustments in transactions of a non-cash type. As
a consequence of foreign exchange movements, changes in cash or cash equivalents should be
disclosed separately in the cash flow statement.

Examples-

 Cash proceeds from the issue of shares or debentures and other debt instruments.
 Cash paid for the redemption of debentures.
 Cash paid for buyback of shares.
 Payment of dividends on shares and interest on debentures and other long term loans.

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 1.2. According to International Accounting Standard – 7 (Statement of Cash Flow):

Effective date

 For financial statements including periods starting on or after 1 January 1994, this standard
becomes operational.
 IAS 27 (as revised in 2008 by the International Accounting Standards Board) amended
paragraphs 39 through 42 and added paragraphs 42A and 42B, respectively. These changes
are to be implemented by an agency for annual periods beginning on or after 1 July 2009.
If IAS 27 (amended 2008) refers to an individual for an earlier date, the amendments shall
apply for that earlier period. The amendments are retrospectively applied.
 The Improvements to IFRSs issued in May 2008 amended Paragraph 14. The amendment
shall be enforced by an agency for annual periods commencing on or after 1 January 2009.
Legalization of earlier application. If an entity applies the change over an earlier period,
the entity shall report the fact and apply IAS 16, paragraph 68A.
 Improvements to IFRSs published in April 2009 were amended to Paragraph 16. That
amendment shall be applied by an agency for annual periods beginning on or after 1
January 2010. An earlier request is allowed. If, for an earlier date, an individual applies
the amendment, it shall report the fact.

OBJECTIVE:

Details on a body's cash flows is useful in providing consumers of financial statements with a basis
for evaluating the unit's capacity to generate cash and cash equivalents and the entity's needs to
make use of such cash flows. The financial decisions made by users include an assessment of an
entity's ability to produce cash and cash equivalents and the timing and trust of their generation.

The purpose of this Standard is to require information on the historical changes in the entity's cash
and cash equivalents to be stipulated by means of a cash flow statement that classifies cash flows
over the operating, investing and funding periods.

The aim of this Standard is to require the provision of information on the historical changes in an
entity's cash and cash equivalents by means of a cash flow statement classifying cash flows from

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operating, spending and financing activities over the period. Inflows and outflows of capital and
cash equivalents are cash flows. Cash consists of cash on hand and deposits in demand. Cash
equivalents are short-term, highly liquid assets that can easily be traded for established cash
quantities and are subject to a marginal risk of change in value.

Data on an entity's cash flows is useful in providing a basis for consumers of financial statements
to determine the entity's ability to produce cash and cash equivalents and the entity's requirements
for operating cash flows. The monetary decisions made by users include an assessment of an
entity's ability to produce cash and cash equivalents and the timing and certainty of its generation.
The cash flow statement shall report cash flows during the period classified in terms of operating,
expenditure and financing activities.

Scope

1. An organization shall prepare, in compliance with the requirements of this Standard, a

statement of cash flow and present it as an integral part of its financial statements for each
period for which financial statements are submitted.
2. 1. This Norm supersedes IAS 7 of the Financial Condition Statement of Adjustments,
approved in July 1977.
3. Users of the financial statements of a company are concerned with how the entity produces
cash and cash equivalents and uses them. This is the case, given the existence of the
operations of the entity and regardless of whether, as might be the case for a financial
institution, cash may be deemed to be the product of the entity. Entities need cash for
exactly the same purposes, but their key revenue-producing activities may be distinct. To
conduct their activities, to pay their debts, and to provide their investors with returns, they
need cash.

Accordingly, this Standard requires all entities to present a statement of cash flow.

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BENEFITS OF CASH FLOW STATEMENT INFORMATION:

When used in conjunction with the rest of the financial statements, the cash flow statement
offers information that helps consumers to determine improvements in the net assets of the unit,
its financial organization (including its liquidity and solvency) and its ability to control the
amounts and timing of cash flows to respond to changing situations and opportunities. Cash flow
information is constructive in assessing the power of the body to get cash and cash equivalents and
enables users to expand models to assess and evaluate this value of the longer term cash flows of
various entities. It also enhances the comparability of the coverage of operating performance by
different entities because it eliminates the consequences of using different accounting treatments
for an equivalent dealings and proceedings.

As a measure of the volume, timing and assurance of potential cash flows, chronological cash
flow information is commonly used. The relationship between profitability and net cash flow and
the effects of changing prices is also useful for analyzing the accuracy of past forecasts of potential
cash flows and for investigating them.

 Operating activities

Operating operations are the entity's main revenue-producing activities and other non-
investment or funding activities. First and foremost, cash flows from operating operations are an
imitation of the entity's primary revenue-producing activities. They are also normally the product
of transactions and other proceedings that come into the strength of benefit or loss mind. The sum
of cash flows resulting from operating activities is a key measure of the extent at which the entity's
operations have generated sufficient cash flows in order to repay debt, sustain the entity's operating
capacity, pay dividends and make new investments without any alternative to external funding
sources.

The sum of cash flows resulting from operating activities is a key measure of the amount in which
the unit's operations have produced satisfactory cash flows for the repayment of loans, the
maintenance of the entity's operating capacity, the payment of dividends and the making of new
investments without the possibility of external financing sources.

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In conjunction with other details, information about the detailed components of historical operating
cash flows is useful in predicting future operating cash flows.

An entity shall report cash flows from operating activities using either:

(a) The direct form of declaration of the key classes of gross cash receipts and gross cash payments;
or

(b) An indirect measure by which the consequences of non-cash sales, any deferrals or accruals of
past or future operating cash receipts or payments, and items of income or cost associated with the
investment or funding of cash flows are considered to be gains or losses.

Securities and loans may be owned by a company for dealing or trading purposes, where
they are equivalent to inventories purchased expressly for resale. Therefore, as an operating
activity, cash flows resulting from the acquisition and selling of dealing or exchanging securities
are private. Accordingly, cash advances and loans made by financial institutions are also known
as operational activities because they relate to the entity's main revenue-producing operation.

 Investing activities

The separate confession of cash flows resulting from investment activities is relevant because
the cash flows relate to the degree to which the tools proposed to produce potential revenue and
cash flows have been spent. Only expenses resulting in a reported asset in the financial position
statement qualify as investment activities for categorization.

The accomplishment and disposition of long-term assets and other investments not
integrated into cash equivalents is an investment practice. The separate disclosure of cash flows
resulting from investment activities is relevant because the cash flows represent the amount of
expenditure made on the capital proposed to produce potential revenue and cash flows.

The combined cash flows resulting from the acquisition and loss of control of subsidiaries or
other undertakings shall be separately presented and listed as investment activities.

 Financing activities

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 The separate disclosure of cash flows resulting from funding operations is relevant because
it helps to forecast claims on potential cash flows to the entity by providers of capital.

Financing activities are activities which lead to changes in the size and composition of the
entity's contributed equity and borrowings. The separate confession of cash flows resulting from
the activity of financing is relevant because it is useful in forecasting claims on potential cash
flows of capital suppliers to the unit.

An organization shall separately disclose main classes of gross cash receipts and gross cash
payments resulting from the operations of expenditure and financing.

 Non-cash transactions

Investment and funding activities which do not include the use of cash or cash equivalents
are removed from the cash flow statement. Such transactions shall be reported in the financial
statements in such a manner as to include all relevant information on the investment and financing
activities in question.

Investment and funding investments that do not need cash or cash equivalents to be used
are removed from the cash flow statement. These transactions shall be reported elsewhere in the
financial statements in such a manner that all relevant details relating to these investment and
financing activities shall be provided.

Many investment and funding operations do not have a direct effect on current cash flows,
but they do affect the development of an entity's capital and properties. The removal of non-cash
transactions from the cash flow statement is reliable for the purpose of the cash flow statement,
since these products do not require cash flows over the current period. There are examples of non-
cash transactions:

 Foreign currency cash flows

Cash flows resulting from transactions in a foreign currency are registered in the realistic
currency of an individual by applying the exchange rate between the usable currency and the
foreign currency at the date of cash flow to the sum of the foreign currency.

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At the date of the cash flows, the cash flows of a foreign subsidiary are converted at exchange rates
between the usable currency and the foreign currency.

Cash flows are not unrealized gains and losses resulting from changes in foreign currency
exchange rates.

Cash flows resulting from transactions in a foreign currency are registered in the functional
currency of an individual by applying the exchange rate between the functional currency and the
foreign currency at the date of the cash transfer to the sum of the foreign currency.

International contributory cash flows are converted at the exchange rates between the
operating currency and the foreign currency at the cash flow dates.

However, in order to settle cash and cash equivalents at the beginning and end of the year,
the effect of exchange rate fluctuations on cash and cash equivalents assumed or payable in a
foreign currency is recorded in the statement of cash flows.

Cash flows denominated in a foreign currency are recorded in the IAS 21 Effects of
Changes in Foreign Exchange Rates Steady Approach. This allows an exchange rate to be used
which approximates the actual rate. For example, for the tracking of foreign currency transactions
or the translation of a foreign subsidiary's cash flows, a weighted average exchange rate for a
period might be used.

However, when translating the cash flows of a foreign subsidiary, IAS 21 does not allow
the use of the exchange rate at the end of the reporting process. Cash flows are not unrealized gains
and losses resulting from changes in foreign currency exchange rates.

However, in the statement of cash flows, the effect of adjustments in the exchange rate on
cash and cash equivalents retained or due in a foreign currency is recorded for the purpose of
reuniting cash and cash equivalents at the beginning and the end of the period. This sum is offered
separately from the cash flows from the operating, spending and funding activities and covers the
variations, if any, between the cash flows recorded at the end of the exchange rate period.

 Cash and cash equivalents

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 An organization shall reveal the workings of cash and cash equivalents and shall present
an arrangement of the sums of the equivalent items recorded in the statement of financial condition
in its statement of cash flows.

An element shall report, together with a management explanation, the quantity of substantial cash
and cash equivalent balances retained by the company which are not available for use by the
community.

Instead of for investment or other reasons, cash equivalents are kept for the justification of
meeting short-term cash obligations. It must be eagerly convertible into a known sum of cash and
be subject to an insignificant chance of changes in value in order for an investment to be profitable
as a cash equivalent. Consequently, an investment normally only counts as a cash equivalent if it
has a limited maturity of, say, three months or less from the date of purchase. Equity investments
shall be exempt from cash equivalents because they are, in effect, cash equivalents, e.g. in the case
of preferred shares purchased within a brief maturity period and on a specified redemption date.

Borrowings from banks are generally known as funding operations. In certain nations,
however, bank overdrafts that are repayable on demand form an integral part of the cash
management of an individual. Bank overdrafts are used as a portion of cash and cash equivalents
in these circumstances.

Cash flows exclude activities between items which constitute cash or cash equivalents,
because they are part of an entity's cash management rather than part of its operating, investing
and financing activities. The investment of surplus cash in cash equivalents requires cash
management.

1.11 IND AS 7 – Statement of Cash Flows

Applicability –

Cash flow declaration is applicable to all businesses and no exception is given to any form of
company from the planning and presentation of the cash flow declaration, but this declaration is
not obligatory for small and medium enterprises as per current AS.

19
Scope –

An organization shall prepare, in compliance with the requirements of this standard, a statement
of cash flows and present it as an integral component of its financial statements for each period for
which the financial statements are prepared.

Objective –

Assessing the entity's ability to produce cash and cash equivalents, and enabling users to expand
models to determine and assess the current value of various entities' potential cash flows. It
increases comparability as well.

Definitions

Cash: Cash comprises cash on hand and demand deposits.

Cash equivalents: Cash equivalents are short-term, highly liquid assets that can easily be traded
for known sums of cash and are exposed to an insignificant risk of changes in value.

Cash flows: Cash flows are inflows and outflows of cash and cash equivalents.

Notes –

1. Borrowings from banks are generally known as funding operations. However, where bank
overdrafts that are repayable on demand form an integral part of the cash management of
an individual, bank overdrafts are incorporated as a cash and cash equivalent portion.

2. In general, an investment only counts as a cash equivalent if it has a limited maturity, i.e.
3 months or less from the purchase date.

Operating Activities –

Are the most important revenue-producing activities of the entity and other activities that are not
investing or financing activities?

Examples –

20
 1. Cash receipts from sale of goods or rendering of services;

2. Cash receipts from royalties, fees, commissions and other revenue;

3. Cash payments to suppliers for goods and services

4. A person may, for dealing or trading purposes, hold securities and loans which are similar
to inventories acquired specifically for resale. Cash flows resulting from the acquisition
and selling of securities for dealing or trading are also known as operational activities.

Notes – Cash payment, as cash flows from operational activities, to produce or acquire properties
kept for lease to others and subsequently held for sale as defined in Paragraph 68A of IND AS 16.
Cash flow from operational activities is also the cash receipts from leases and subsequent sales of
those properties.

Investing Activities –

Are the acquisition and disposal of long-term assets and other investments not included in cash
and cash equivalents?

Example –

1. Cash payment to acquire property, plant and equipment, intangibles and other long-term
assets

2. Cash receipts from sale of property, plant and equipment, intangibles

3. Cash payment to acquire equity or debt instruments

4. Cash advances and loans made to other parties

5. Cash payment for future contracts, forward contracts, option contracts

Financing Activities –

Are activities that result in changes in the size and composition of the contributed equity and
borrowings of the entity?

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Example –

1. Cash proceeds from issuing of share or other equity instruments

2. Cash payment to owners to acquire or redeem the equity’s shares

3. Cash proceeds from issuing debentures, loans, notes, bonds, mortgages

4. Cash repayments of amount borrowed and

5. Cash repayment by lessee for the reduction of the outstanding liability

Note –

Cash flows arising from the operating, investing or financing activities may be reported on net
basis.

Foreign currency cash flows –

Cash flows resulting from transactions in a foreign currency are registered in the realistic currency
of an individual by applying the exchange rate between the usable currency and the foreign
currency at the date of the cash transfer to the sum of the foreign currency.

At the date of the cash flows, the cash flows of a foreign subsidiary are converted at exchange rates
between the usable currency and the foreign currency.

Note –

Unrealized gains and losses arising from changes in foreign currency exchange rates are not cash.

Others

Interest & Dividend–

Cash flows from earned and paid interest and dividends shall each be disclosed separately. Cash
flow from interest charged and interest and dividends earned can be categorized as cash flow from
operating activities in the case of financial institutions.

22
In case of other entities –

 Interest paid should be classified as part of financing activities.

 Interest and dividend received should be classified as part of investing activities.

 Dividend paid should be classified as part of financing activities.

Cash flows resulting from income taxes shall be disclosed on an independent basis and shall be
listed as part of operational activities, unless they can be categorized separately as investing and
financing activities.

Investment and financial transactions which do not include the use of cash or cash equivalents are
exempt from the cash flow statement.

Example –

a. The acquisition of assets either by assuming directly liabilities or by means of a finance lease

b. The acquisition of an entity by means of an equity issue

c. The conversion of debt into equity

1.12 DIFFERENCE BETWEEN IND AS 7 ON STATEMENT OF CASH FLOWS AND

THE EXISTING AS 3 ON CASH FLOW STATEMENT:

(I) In particular, IND AS 7 encompasses bank overdrafts that are repayable on demand as part of
cash and cash equivalents, whereas the current AS 3 is silent on this aspect.

ii) IND AS 7 provides for the treatment of cash payments for the creation or purchase of properties
held for rent to others and subsequently held for sale as cash flows from operating operations in
the ordinary course of business. In addition, care is also given for cash receipts from rent and the

23
consequent selling of such properties as cash flow from operational activities (refer paragraph 14
of IND AS 7).

(iii) IND AS 7 includes the following new examples of cash flows arising from financing activities

(a) Cash payments to owners to acquire or redeem the entity’s shares

b) Cash proceeds from mortgages

c) Cash payments by a lessee for the reduction of the outstanding liability relating to a finance
lease.

(iv) IND AS 7 only includes an adjustment of profit or loss for the impact of 'undistributed profits
of associates and non-controlling interests' relative to the current AS 3 when calculating the net
cash flow from operating activities by Indirect method (refer to IND AS 7, paragraph 20(b).

(v) Current AS 3 specifies that cash flows linked to exceptional activities be separately listed as
resulting from running, spending and financing activities, while this provision is not included in
IND AS 7.

(vi) IND AS 7 includes the declaration of the amount of cash and cash equivalents and other assets
and liabilities in the subsidiaries or other undertakings over which control is gained or lost, as
opposed to the current AS 3 (see paragraph 40(c) and (d) of IND AS 7). IND AS 7 also includes,
in the statement of cash flows, net of cash and cash equivalents obtained or disposed of as part of
such transactions, events or changes in circumstances, to disclose the combined sum of cash paid
or earned as compensation for acquiring or losing control of subsidiaries or other undertakings
(refer paragraph 42 of IND AS 7). The current AS 3 does not include such specifications.

(vii) IND AS 7 requires that cash flows resulting from changes in ownership interests in a
subsidiary which do not result in a loss of control be classified as cash flows from financing
activities (refer paragraphs 42A and 42B of IND AS 7). No such condition is found in the current
AS 3.

24
(viii) IND AS 7 notes that when accounting for an investment in an associate or a subsidiary, the
use of the equity or expense form (refer paragraph 37 of IND AS 7). The reporting of interest in a
jointly managed company using balanced consolidation and the equity approach is also discussed
in particular (refer paragraph 38 of IND AS 7). Such specifications are not present in the current
AS 3.

(ix) The word' usable currency 'instead of' reporting currency 'is used by IND AS 7 (as used in the
existing AS 3). IND AS 7 also deals with the translation of the international subsidiary's cash flows
(refer to paragraphs 25 to 27 of IND AS 7), while it is not dealt with in the current AS 3.

(x) IND AS 7 requires more disclosures as compared to the existing AS 3 and AS 7 and existing
AS 3

The purpose of IND AS 7 is to include the provision of information on the historical changes in
the entity's cash and cash equivalents by means of a cash flow statement classifying cash flows
from operating, spending and financing activities over the period. The purpose of IND AS 7, i.e.
"Cash flow statement," is close to that of the current AS 3, i.e. "Cash flow statements".

IND AS 7 varies in some ways from the current AS 3. The distinctions between IND AS 7, i.e.
"Cash flow statement," and current AS 3, i.e. "Cash flow statements," are as follows: —Cash flow
statements

As specified in the notification, the current AS 3 is not compulsory for small and medium-sized
companies. It does, however, allow those institutions to comply with the standard. No such
exclusion, however, has been included in IND Butt.

IND AS 7 explicitly involves bank overdrafts that, as part of cash and cash equivalents, are
repayable on demand. Paragraph 8 of IND AS 7 notes that, in general, bank borrowings are known
as financing activities. However, where bank overdrafts that are repayable on demand form an
integral part of the cash management of an individual, bank overdrafts are included as a cash and
cash equivalent portion. An attribute of such banking arrangements is that from being optimistic
to overdrawn, the bank balance always fluctuates. In this respect, however, the current AS-3 is
silent.

25
 Paragraph 14 of IND AS 7 includes the treatment of cash payments as cash flows from
operational operations in order to manufacture or procure properties retained for lease to others
and then held for sale in the ordinary course of business. In addition, care is also given for cash
receipts from rent and the subsequent disposal of such properties as cash flow from operational
activities.

IND AS 7 includes the following new examples of cash flows arising from financing
activities: -

 Cash payments to owners to acquire or redeem the entity’s shares

 Cash proceeds from mortgages

 Cash payments by a lessee for the reduction of the outstanding liability relating to a finance
lease.

1.13 WHAT IS CASH MANAGEMENT?

 The process involving gathering and handling cash flows from a company's running,
spending, and funding activities is cash management, also known as treasury management.
In industry, it is a crucial aspect of the financial stability of an organization.
 For both businesses and individuals, cash management is essential, as it is a key component
of financial stability.
 Money market funds, Treasury bills, and certificates of deposit comprise financial
instruments involved in cash management.
 To assist in all aspects of cash management, businesses and individuals provide a wide
variety of services available across the financial marketplace. Banks are usually a key
provider of financial services. For both businesses and individuals looking to get the best
return on cash assets or the most successful use of cash, there are often several different
cash management strategies.

26
  In order to make efficient use of the liquid capital of the business, Cash Management relates
to the selection, storage, control and investment of corporate cash and cash equivalents.
Money is the company's lifeline, and it is therefore necessary to maintain a sound cash flow
position in the organization.

1.14 UNDERSTANDING CASH MANAGEMENT

In an organization, the key persons responsible for overall cash management plans, stability
analysis, and other cash-related duties are typically chief financial officers, business managers,
and corporate treasurers. Many organizations, however, can outsource to some service providers
part or all of their cash management responsibilities.

The cash flow statement is the key component of the cash flow management of a company.
The cash balance statement documents all of the cash inflows and outflows of the company
comprehensively. It covers cash from operational operations, cash paid for investment activities
and cash from funding activities. The bottom line of the cash flow statement indicates how much
revenue is readily available to a company.

The statement of cash flow is divided into three sections: acquisition, funding, and
operating activities. The working portion of cash operations is heavily dependent on net working
capital, which is presented as the current assets of a company minus current liabilities on the cash
flow statement. Businesses aim to ensure that the current balance of assets exceeds the current
balance of liabilities.

With cash inflows and outflows related to expenditure and financing, such as acquisitions
in real estate, the procurement of new equipment and machinery and the origination of stock
repurchases, or the payment of dividends as part of financing operations, the other two sections of
the cash flow statement are much simpler.

To maintain and attain productive company cash flows, there are many internal controls
used. The average length of account receivables, write-offs for uncollected receivables, collection
procedures, rates of return on cash equivalent assets, liquidity, and credit line management are
some of the main cash flow considerations of a company.

27
 Cash management refers to the accumulation, concentration, and disbursement of cash as
a general term. The aim is to control an enterprise's cash flows in such a way that the supply of
cash not invested in fixed assets or inventories is maximized and to do so in such a way that the
risk of insolvency is avoided. Factors tracked as part of cash management include the li level of a
business
In certain cases, the most significant role of business managers is to control cash flow. If a
corporation fails to pay an obligation at any point when it is due because of the absence of funds,
the company is insolvent. The primary reason companies go bankrupt is insolvency. Obviously,
the risk of such a dire outcome should compel businesses to carefully manage their cash.
Furthermore, Effective cash management means more than just bankruptcy avoidance. It increases
profitability and decreases the risk to which the company is exposed.

For new and growing companies, cash management is especially critical. Even though a small
company has many buyers, sells a product superior to that sold by its rivals, and enjoys a sterling
reputation in its industry, cash flow can be an issue. In the event of unanticipated costs, businesses
suffering from cash flow concerns do not have a safety margin. They may also have difficulty
finding the funds to invent or grow. Somewhat ironically, when you have money, it's easier to
borrow money. Finally, poor cash flow makes it impossible to hire successful workers and
maintain them.

It is only natural that the manufacture of goods or the provision of services incur large business
expenses. In certain situations, such costs are incurred by a corporation before the corresponding
payment is collected from clients. Furthermore, employee compensation and other costs drain
significant funds from most corporations. These variables make successful cash management an
integral part of the financial planning of every business. Cash is a business's lifeblood. For
performance, managing it effectively is necessary.

Many small business owners, bent on expanding their business and tamping down debt, invest
much or all of these funds when cash is received in return for goods or services provided. But
while such targets are praiseworthy, they should leave space for organizations to absorb lean
financial times down the road. Therefore, the key to good cash management is to tabulate practical

28
forecasts, monitor collections and disbursements, create efficient billing and collection measures,
and comply with budgetary constraints.

Receivables Cash Management

Any money collected but not yet obtained by the company, i.e. the outstanding amount and
anticipated to be received in the future, is known as receivables.

To retain the surplus cash inflow, a company must treat its receivables. This allows the
organization to fulfil its immediate cash needs.

The cash receivables must be planned in such a way that the company can easily understand its
debts and give the debtors a limited credit period.

Payables Cash Management

The payables apply to the organization's payment that is outstanding and is to be paid off shortly.

The company should manage its cash outflow in a way that enables the creditors to gain an
extended credit term.

In order to satisfy short-term needs and abrupt costs, this allows the organization to maintain its
cash capital for a longer time. Also for the unique credit cycle, the company will invest this cash
in a lucrative opportunity to produce additional revenue.

1.15 CAUSES OF PROBLEMS WITH CASH MANAGEMENT

Sadly, several organizations participate in poor cash management, and there are many explanations
for the problem. Let us take a look at a couple of them:

29
1. Poor understanding of the cash flow cycle

The timing of cash inflows and outflows from the entity should be well known by business
leadership, such as when to pay for accounts payable and buy inventory. A business can end up
running out of money during rapid growth because of over-purchasing inventory, but not receiving
payment for it.

2. Lack of understanding of profit versus cash

A business will produce profits on its income statement and burn cash on the statement of cash
flow.

When a corporation earns income, it does not inherently indicate that cash payment for that revenue
has already been paid. Therefore, a very fast-growing company that needs a lot of stock can
generate a lot of income but not obtain positive cash flows on it.

3. Lack of cash management skills

Despite recognizing the above problems, it is important for managers to learn the requisite skills.
The skills include the ability to optimize working capital and handle it. It may require vigilance
and the implementation of appropriate mechanisms to ensure that receivables are received on time
and that payables are not paid faster than required.

CASH MANAGEMENT IN TROUBLED TIMES

It is important for managers to learn the required skills, despite recognizing the above problems.
The abilities include the ability to optimize and handle working capital. In order to ensure that
receivables are issued on time and that payables are not paid faster than needed, it may require
diligence and implementation of appropriate mechanisms.
Business managers or owners need to sit down at times like this and perform cash management
research so that they can fix shortfalls, raise sales, and cut expenses until it's too late. They need

30
to consult with and take care of department heads and staff and implement a better cash
management strategy.

The strategy will entail some harsh measures, but they will recognize that these are important for
the survival of the company if workers are involved. You may also carry the proposal to the
bankers in the expectation that they can extend your much-needed credit through a face-to-face
meeting and evidence that you are getting the cash management situation under control.

Even during economic boom times, many small businesses experience cash flow difficulties,
especially during their first years of operation. But entrepreneurs and managers can take steps to
minimize the impact of such problems and help maintain the continued viability of the business.
Suggested steps to address temporary cash flow problems include:

• Create a practical cash flow budget that maps both short-term (30-60 days) and longer-term
finances (1-2 years). Redouble efforts to receive unpaid payments owed to the company. "Bill
promptly and accurately," the Journal of Accountancy recommended. The sooner you file an
invoice, the quicker you will be billed. If deliveries do not cause an invoice immediately, set up a
set of invoices.

•Offer small discounts for prompt payment.

• Consider compromising with consumers in some billing conflicts. Small business owners are
understandably reluctant to take this move, but in some situations, having some cash-even if your
company is not at fault in the dispute-; it may be appropriate to cover basic expenses for goods
sold/services rendered.

• Closely track all cash disbursements and priorities them.

• Contact creditors (sellers, lenders, landlords) and try to negotiate mutually agreeable agreements
that will enable the company to cope with its cash shortage (provided it is a temporary one). You
may be able to arrange better payment terms from vendors or banks in some situations. The Journal

31
of Accountancy notes that "Better credit terms translate into borrowing money interest-free,"

• Liquidating excess inventory.

Consider other areas where operating costs, such as payroll or non-strategic products and/or
services with limited profit margins, can be reduced without permanently disabling the business.

4. Bad capital investments

In order to justify investments, a corporation can allocate capital to projects that ultimately do not
yield sufficient return on investment or sufficient cash flows. The investments would be a net drain
on the cash flow statement if this is the case, and ultimately, on the cash balance of the company.

1.16 OBJECTIVES OF CASH MANAGEMENT

 Fulfil Working Capital Requirement: In order to cover its regular expenditures, the
company needs to retain enough liquid cash, which is only possible by successful cash
management.
 Planning Capital Expenditure: It helps to plan capital expenditure and assess the debt-
equity ratio to secure funding for this reason.
 Handling Unorganized Costs: There are occasions when the company faces unforeseen
situations, such as the failure of equipment. There are unexpected costs to be coped with;
in such cases, money surplus is a lifesaver.
 Initiates Investment: The other goal of cash management is to invest in the right
opportunity and the right proportion of the idle funds.
 Better Utilization of Funds: By maintaining a reasonable balance between the cash in
hand and expenditure, it ensures the optimal use of the available funds.
 Avoiding Insolvency: The situation of insolvency can occur if the company does not
prepare for effective cash management. That is either due to a lack of liquid cash or because
the money available does not make a profit.

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1.17 FUNCTIONS OF CASH MANAGEMENT

All sorts of entities, regardless of their scale, form and venue, need cash management. The different
managerial roles related to money management are as follows:

 Investing Idle Cash: In order to use excess funds, the organization needs to search for
different short term investment options.
 Controlling Cash Flows: An important feature of the organization is to limit the cash
outflow and speed up the cash inflow.
 Planning of Cash: In terms of having enough cash in hand and making prudent
investments, cash management is all about preparation and decision making.
 Managing Cash Flows: To achieve a positive cash flow, it is important to sustain the
proper flow of cash in the company by cost-cutting and profit generation from investments.
 Optimizing Cash Level: In order to sustain the necessary amount of liquidity and cash for
business activities, the company should continually operate.
 Inventory management: Greater stock in hand means trapped sales and less liquidity is
indicated by trapped sales. Therefore, to ensure the movement of cash, a company must
aim at a faster stock out.
 Receivables Management: For its revenues, an organization raises invoices. In such
situations, the credit period for receiving the cash can vary from 30 to 90 days. Here, the
company has registered the transactions but has not yet collected money for the
transactions.

So, to prevent a cash crunch, the cash management feature would allow quicker recovery
of receivables. The company would have enough cash in hand to make its payments if the
average time for recovery is shorter. Timely payments mean that the company has lower
expenses (interest, penalties).

Receivables monitoring also requires a comprehensive follow-up process. This will ensure
a smoother recovery and will also help the company anticipate bad debts and unexpected
circumstances.

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 Payables Management: While the management of receivables is one of the key areas of
the cash management function, the management of payables is also important. Payables
occur when the company has made transactions on credit and needs to make payments
within a set period for the same.
Short-term credit may be taken from banks and financial institutions by an entity. These
credit facilities, however, come at a cost and a company must therefore ensure that they
maintain a strong liquidity position; this will assist in timely debt repayments.

 Forecasting: Managers need to be very vigilant when preparing investments, as they need
to prepare for future contingencies and still ensure profitability. They must use appropriate
forecasting and management methods for this. It provides the company with strong
liquidity as cash inflows and outflows are effectively handled.

 Short-term investments: The key requirements of cash management are preventing cash
crunch, insolvency and maintaining financial stability. But spending the surplus cash in
hand wisely is equally necessary. Idle cash does not yield any returns, despite being a liquid
asset. A company must ensure liquidity and optimal returns when investing in short-term
investments. This decision therefore needs to be made with prudence. The quantum/amount
of investment needs to be measured and carefully determined here. This caution is
important since all the available funds cannot be spent by an organization. Businesses (cash
in hand) often need to reserve cash for contingencies.

 Other functions: Cash management also requires the tracking of bank accounts, electronic
banking management, asset pooling and netting, etc. So cash management may also be a
central feature for the treasury. While this function is managed by software for large
corporations, small businesses have to manually control it and maintain liquidity at all
times. To note, at affordable rates, large companies have access to credit facilities. For
small enterprises, access is not available. Cash management is also essential to them. Even
large companies, however, need to control their processes time and again to prevent a
bankruptcy situation.

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1.18 IMPORTANCE OF CASH MANAGEMENT

Just as a 'no cash situation' can be a nightmare in our everyday lives, it can be catastrophic for a
company. It can lead to a point of no return, especially for small enterprises. This affects the image
of the organization and can lead to them closing down. For business managers, therefore, the most
important role is to manage cash.

Management needs to ensure that ample capital is available to satisfy the existing commitments
while ensuring that there are no unused assets. As companies depend on the recovery of
receivables, this is very important. If a debt goes bad (irrecoverable debt), cash flow may be
jeopardized. Cash management is therefore also about being vigilant and making adequate room
for contingencies such as low bad debt.

For any new or growing enterprise, cash management is critical, and here are some tips to help
your company gather, focus, and disburse cash.

1.19 INTRODUCTION TO INDIAN AUTOMOBILE INDUSTRY

With an annual turnover of $100 billion, the Indian automotive industry is the fourth largest in the
world and employs 32 million people. India's two-wheeler industry is the largest in the world.
India is also the largest producer of tractors and the world's eighth largest producer of commercial
vehicles.

The automotive sector currently accounts for approximately 50 per cent of India's gross domestic
product (GDP) output, 26 per cent of its GDP and 7.1 per cent of its total GDP, up from 2.7 per
cent in 1992-93. The sector contributes to the government approximately 13 percent of excise
revenue.

In the last decade, the overall investment in this sector has been about $40 billion. The 2001-2010
decade saw a 15.67 per cent compounded annual sales increase, which included 10 per cent of
exports. From 2000 to 2015, the yearly growth in exports was 23 percent due to continuous
government support.

35
Two-wheeler, four-wheeler, passenger vehicles and commercial vehicles are part of the
automotive market. 4.06 million cars were produced in 2018-19, and about 32 million cars are
currently running on Indian streets. With a share of 80 per cent, the two-wheeler segment
dominates the market.

In 2019-20, however, the sector faced problems on a quarterly and even annual basis in sustaining
revenue and profitability figures. Market leader Maruti Suzuki suffered a 35.9 percent decline in
domestic sales in August 2019, with 94,728 units sold due to subdued market confidence, weak
economic growth and crisis in non-banking financial companies (NBFCs).

India is also a leading exporter of cars and has high hopes of export growth for the near future.
Moreover, multiple initiatives by the Government of India and major car players in the Indian
market are projected to make India a pioneer in the world's two-wheeler and four-wheeler markets
by 2020.

1.20 MARKET SIZE

Domestic vehicle production increased between FY16-20 at 2.36 percent CAGR, with 26.36
million vehicles being produced in the country in FY20. Overall, domestic car sales between
FY16-FY20 increased by 1.29 percent CAGR, with 21.55 million vehicles being sold in FY20.

The domestic Indian auto industry is dominated by two wheelers and passenger vehicles. Small
and mid-sized cars dominate passenger car sales. Two wheelers and passenger cars accounted for
80.8 percent and 12.9 percent of the market share, respectively, totalling over 20.1 million vehicles
sold together in FY20.

In October 2020, passenger vehicle (PV) sales stood at 3,10,294 units, compared to 2,71,737 units
in October 2019, recording a rise of 14.19 percent.
PV sales in November 2020 stood at 2,91,001 units, as per the Federation of Automotive Dealers
Associations (FADA), compared to 2,79,365 units in November 2019, recording a 4.17 percent
increase.

36
Overall, car exports in FY20 reached 4.77 million cars, increasing at a 6.94 percent CAGR during
FY16-FY20. 73.9 percent of the vehicles exported were two wheelers, followed by passenger
vehicles at 14.2 percent, three wheelers at 10.5 percent and 1.3 percent of commercial vehicles.

EV sales, excluding E-rickshaws, grew by 20 percent in India and reached 1.56 lakh units powered
by two wheelers in FY20.

In India, premium motorcycle sales posted a seven-fold rise in domestic sales, reaching 13,982
units between April and September 2019. In the first six months of 2019, sales of luxury cars were
between 15,000 and 17,000

Government Initiatives
Foreign investment in the automotive sector is supported by the Government of India and 100
percent foreign direct investment (FDI) has been approved under the automatic path.
Some of the recent steps that the Government of India has taken are:

 The Government declared under the 2019-20 Union Budget that it will include an
additional income tax deduction of Rs. 1.5 lakh (US$ 2,146) on the interest paid on the
loans taken to buy EVs.
 As a global manufacturing Centre and a research and development (R&D) Centre, the
government aims to grow India.
 Under NATRiP, at a total cost of US$ 388.5 million, the Government of India plans to set
up R&D centers to enable the industry to be on par with global standards.
 The Government of India, Ministry of Heavy Industries, has shortlisted 11 cities in the
country under the Popularity (Faster Adoption and Manufacturing of (Hybrid) and Electric
Vee) to incorporate EVs in their public transport systems.

In February 2019, the Government of India approved the FAME-II scheme with a Rs. 10,000
crores (US$ 1.39 billion) fund requirement for FY20-22.
The Growth
In 2019, India's annual production was 30.91 million vehicles as opposed to 29.08 million in 2018,
recording a healthy increase of 6.26 percent.

37
By 2021, India is projected to emerge as the third largest market for passenger vehicles in the
world. Passenger vehicle sales increased by 2.70%, two-wheeler by 4.86% and three-wheeler by
10.27% in FY 2018-19 compared to FY 2017-18.
Total car exports increased by 14.50 percent in April-March 2019. In April-March 2019, the total
segment of Commercial Vehicles reported a growth of 17.55 percent.

1.21 STATISTICS

Indian automobile industry production trend

The cumulative production data for 2009-10 to 2018-19 are showing following numerals
(in % form). The automative industry shows growth of 7.08% for the year 2010-11 compare
to last year i.e. 2009-10. For the next year it shows 12.41% growth rate in overall
production of vehicles but for the year 2012-13 the growth rate decreases at 1.29% compare
to previous year. For the next two years the growth rates show increasing trend with 3.97%
and 7.99% respectively. Following years shows flacuating trend as every year it changes
the trend with the numbers 2.74%, 5.19%, 12.94% and 5.88%. by this data we can coclude
that the year 2017-18 shows highest growth rate for the production.

Category
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19
Passenger 16.83% 16.67% 15.44% 15.65% 14.36% 13.79% 14.42% 15% 13.82% 13.03%

Commercial 4.45% 4.25% 4.56% 4.03% 3.25% 2.99% 3.28% 3.20% 3.08% 3.60%

Three 4.86% 4.47% 4.31% 4.07% 3.86% 4.06% 3.89% 3.09% 3.51% 4.10%
wheeler

Two 73.86% 74.61% 75.69% 76.25% 78.53% 79.16% 78..41% 78.71% 79.59% 79.27%
wheeler

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

38
The cumulative sales data for 2009-10 to 2018-19 are showing following numerals (in %
form). The automative industry shows growth of 20.58% for the year 2010 -11 compare to
last year i.e. 2009-10 in sales. For the next year it shows 10.83% growth rate in overall sale
of vehicles but for the year 2012-13 the growth rate decreases at 2.43% compare to previous
year. For the next two years the growth rates show increasing trend with 3.42% and 6.73%
respectively. Following years shows flacuating trend as ev ery year it changes the trend
with the numbers 3.64%, 6.38%, 12.48% and 4.89%. by this data we c an coclude that the
year 2010-11 shows highest growth rate for the sales.

Indian Automobile industry domestic sales trend

Category
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19
Passenger 15.87% 16.16% 15.15% 14.98% 13.59% 13.19% 13.62% 13.94% 13.16% 12.86%

Commercial 4.33% 4.42% 4.66% 4.46% 3.44% 3.11% 3.35% 3.27% 3.43% 3.84%

Three wheeler 3.58% 3.40% 2.96% 3.03% 2.61% 2.70% 2.63% 2.54% 2.54% 2.67%

Two wheeler 76.22% 76.02% 77.23% 77.53 80.36% 81% 80.4% 80.25% 80.87% 80.63%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

The cumulative export data for 2009-10 to 2018-19 are showing following numerals (in %
form). The automative industry shows growth of 22.22% for the year 2010-11 compare to
last year i.e. 2009-10 in exports. For the next year it shows 21.03% growth rate in overall
export of vehicles but for the year 2012-13 the growth rate decreases with negative numbers
at -1.35% compare to previous year. For the next two years the growth rates show
increasing trend with 6.81% and 12.95% respectively. Following years shows flacuating
trend as every year it changes the trend with the numbers 1.93%, -4.60%, 13.90% and
12.66%. by this data we can coclude that the year 2010-11 shows highest growth rate for
the export.

39
Indian Automobile industry export trend

Category

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19
Passenger 39.14% 19.15% 25.76% 19.30% 19.16% 17.39% 17.92% 21.80% 18.51% 14.61%

Commercial 3.95% 3.19% 4.67% 2.76% 2.48% 2.43% 2.83% 4.36% 2.40% 2.16%

Three wheeler 15.19% 11.64% 18.32% 10.45% 11.36% 11.41% 11.10% 7.81% 9.42% 12.26%

Two wheeler 41.72% 88.36% 51.25% 67.49% 67% 68.77% 68.15% 66.03% 69.67% 70.97%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Other statistics:

 Sub-sectors such as passenger cars, recreational vehicles, three-wheelers and two-

wheelers can be grouped into the automotive industry. Two -wheelers hold the
dominant spot, accounting for about 80 percent 39.14%of the market share and 13
percent of total passenger vehicles.

 India is the world's largest producer of two-wheelers, three-wheelers and tractors,

and the world's fifth largest producer of automobiles.

 India is currently the world's fourth-largest market for automobiles.

 During FY 2018-19, the Indian Automotive Industry's total turnover was around
USD 118 billion, which is 7.1 percent of the total GDP of the country, 27 percent
of industrial GDP and 49 percent of manufacturing GDP.

 One of the biggest employers is the car industry. Around 37 million d irect and
indirect jobs are given.

 The current annual sales of all types of vehicles are projected to hit 84.5 million by
2030.130.

40
 Output of passenger cars, commercial vehicles, two-wheeler and three-wheeler
vehicles is projected to increase annually to 9.4 mn units, 2.0 mn units, 50.6 mn
units and 0.95 mn units by 2026.

 According to the 2016-26 Automotive Mission Plan, the automotive industry has
the potential to contribute approximately 12% of total GDP by 2026 and generate
65 million jobs.

 India's automotive industry has come a long way from the 1950s, when annual vehicle
production was limited to 40,000. Early development phases were limited to Hindustan
Motors, Premier Automobiles and Regular Motors, the three leading manufacturers. In the
early stages, experience in the automotive industry was by and large gained by trial and
error.
 The gross value added from the road transport sector was the highest across India at about
3.6 trillion Indian rupees in fiscal year 2017. Together with sustained economic growth,
the expansion of the road network has led to a rapid rise in the total number of vehicles
across the subcontinent. Two-wheelers, trucks, vans, buses, three-wheelers and more play
a crucial role in the industry.
 In terms of change, there has been tremendous growth. In 2017, the nation had a production
capacity of approximately 35 million vehicles. In 2020, it was the largest tractor producer
and the second largest manufacturer of buses. India is also the world's largest manufacturer
of two and three-wheelers.
 The leading two-wheeler maker was Hero MotoCorp. In 2019, about 7.8 million units were
sold domestically by the company. Passenger vehicle sales had an increase of around 2.7
percent in fiscal year 2019. Maruti Suzuki dominated the market, with a share of over 50
percent in the segment.
 The firm is the first manufacturer to cumulatively sell over 20 million passenger vehicles.
At about 17 percent, commercial vehicles reported the highest growth that year. In the
segment, Tata Motors held a powerful over 40 percent command. Other players in the
business were Mahindra & Mahindra, Ashok Leyland and Eicher Motors.
 A cause for concern within the automotive industry has been the issue of declining air
quality and rising congestion. India has been consistently included in the list of the most

41
 traffic-congested and polluted cities in the world. A variety of steps have been taken by the
government to deal with the growing pressure from NGOs and environmental groups.
 In comparison to traditional vehicles, new emission standards were released and taxes on
electric vehicles were lowered by a good margin. The quantity of traffic on narrow, partly
built roads will likely be a constant wrestle with the nation on its way to overtaking China
to become the most populous.
Indeed, the growing number of vehicles has been an indication of a burgeoning middle class, but
the need for the hour is sustainability, and it remains to be seen how much this aspect can benefit
the automotive industries of India.

42
2.1 CASH FLOW ANALYSIS:

Mangayarkkarasi Muthuvelan (2015)1 had undertaken study on “a study on cash flow analysis
in m/s. pantaloon retail (India) limited” this paper has attempted to look into cash flow analysis in
pantaloon retail (India) limited. The paper focuses on the statement of cash flow that recasts the
financial statement data provided by the accrual process. It discusses the use and analysis of the
information provided by the cash flow statement. Many users give preferences to direct method
few only considering indirect method. In this paper they found out the cash from operations and
cash flow statement for the financial years 2006-2010. At the year 2006 the applications of cash
are little poor than other years. For the year 2010 the applications of cash are very high. So they
conclude that at the 2010 the firm has good financial position.

Lijuan Zhao (2013)2 had undertaken study on “does the presentation format of the statement of
cash flow affect analysts- cash flow forecast”. The study was based on a hypothesis which is long-
term debate over the benefits and costs of DM disclosure and IM disclosure. And on the basis of
above study he conclude that IAS 7 and SFAS 95 recommend firms use DM to present the
statement of cash flows, however, DM information is more useful in forecasting future cash flows.
This study finds that the analysts will be more likely to forecast future cash flow for firms using
DM. These results are consistent with prior literature that DM provides more useful information
than IM in predicting future cash flows.

Simona (2009)3 had undertaken study on “study on the importance of cash flow analysis based on
rates in the financial decision making process” in this context, it is necessary to establish the
primary objective of managers as maximize enterprise value by maintaining a relatively steady

1
. Muthuvelan, M. (2015). A STUDY ON CASH FLOW ANALYSIS IN M/S. PANTALOON RETAIL (INDIA) LIMITED. International
Journal of Management Research and Reviews, 5(5), 315.
2
Zhao, L., & El-Masry, E. H. E. (2013). Assessing the ability of the direct method format of the statement of cash flows to boost financial
analyst’s judgment accuracy. The Journal of Human Resource and Adult Learning, 9(2), 1.
3
Florentina-Simona, P. D. S. F. (2010). Study On the Importance of Cash Flow Analysis Based On Rates in The Financial Decision Making
Process. Annals of the University of Craiova, Economic Sciences Series, 2.

43
cash flow, not profit maximization. This new orientation is particularly appropriate for investors
who are interested in medium and long term results and less short term performance. Applied study
presented fully supports the assertion that the results of situation analysis and cash flow rates based
on the content of it are essential in decision making process undertaken at the enterprise.
Management team decision influence the future evolution of the company and it is important that
these decisions should be based on a detailed knowledge as to its real financial position.

Yaqiong Liu, Tarek Zayed and Shujing Li (2009)4 had undertaken study on “cash flow analysis
of construction project”. The research presented in this paper focuses on identifying and assessing
the effects of several factors on cash flow forecasting. Based on the factors identified, a stochastic
model was developed by integrating AHP with simulation. Results show that “financial
management”, at 27.72%, plays the most important role in cash flow forecasting. Special caution
must be taken in anticipating the following factors occurrence in the project: change of progress,
payment duration, financial position, project delay, improper planning and management, inability
to manage change order and number of claims. This research may serve as an advance warning
sign for the contactor, that mitigation procedure should be undertaken. It is advantage to have a
prior knowledge of cash flow forecasting and understand the impact of various cash flow factors.
In conclusion, the developed cash flow model can be of benefit in forecasting cash flow progress.

Fawzi Laswad and Rachel Baskerville(2007)5 had undertaken study “ an analysis of the value
of cash flow statement of New Zealand pension schemes” they mentioned that – superannuation
schemes are required to report their earning on a fair value basis, reflecting recent shifts toward
fair value reporting in financial reporting. Fair value earnings of such schemes include realized
earnings and unrealized changes in value of assets and liabilities. The finding of the study includes
that realized earnings are negatively associated with unrealized earnings and positively associated
with cash flow from operations, but no association found between unrealized earnings and cash

4
Liu, Y., Zayed, T., & Li, S. (2009). Cash flow analysis of construction projects. In Canadian Society of Civil Engineering (CSCE) Conference,
St. John’s, Newfoundland, Canada, May (pp. 27-30).
5
Laswad, F., & Baskerville, R. F. (2007). An analysis of the value of cash flow statements of New Zealand pension schemes. The British
Accounting Review, 39(4), 347-355.

44
flows from operations. However, the results suggest that unrealized earning provide additional
information to users.

James Ohlson and Jagadison Aier (2007)6 had undertaken study on “the analysis of firm’s cash
flows “. This paper proposes that the analysis and evaluation of cash flows is best done when based
on what is referred to as modified cash accounting. This paper has developed the proposed MCA
from the perspective of someone who wants to apply it using actual financial reports. Depending
on the degree of detail and accuracy desired, this can generally be done fairly quickly. The demand
for the statement reflects user’s queasiness with accruals and the difficulty in estimating a firm’s
recurring earnings, especially on an operating basis, then it follows logically that the statement
should be organized and conceptualized like any income statement.

Jaan Alver7 had undertaken study on “preparation and analysis of cash flow statement: the net
profit approach and operating profit approach” The paper focuses on the statement of cash flows
that recasts the financial statement data provided by the accrual process. It discusses the use and
analysis of the information provided by the cash flow statement. Three important areas that affect
cash flows are operations, financing, and investing. Not surprisingly, they provide the structure for
both the preparation and interpretation of the cash flow statement. The opinion that the treatment
of an item in the income statement should determine its classification in the cash flow statement
is expressed in this paper. For classification of operating cash flows, preparing and analysis of cash
flow statements two approaches (net profit approach and operating profit approach) are
recommended.

Danial E. O’leary and W. Thomas Lin8 had undertaken study on “an expert system for cash flow
analysis”. This paper discussed an expert system for cash flow analysis based on traditional
accounting models of cash flow. The scope of expert systems in cash management can range from

6
Ohlson, J. A., & Aier, J. K. (2007). On the analysis of firms' cash flows.
7
Alver, J. (2005). Preparation and analysis of cash flow statements: The net profit approach and operating profit approach. Journal of Economic
Literature.
8
O'Leary, D. E., & Lin, T. (1987). An expert system for cash flow analysis. In Proceedings of the First Annual Conference on Expert Systems in
Business, J. Feinstein, J. Liebowtiz, H. Look, and B. Silverman (eds.), Medford, NJ, Learned Information (pp. 183-190).

45
the current system to systems that include and explain the output from analytic tools such as linear
programming or forecasting tools. This system and other such cash management systems can aid
cash flow analysis in a number of ways. First, they can lead to a consistent analysis of the input
data, minimizing the inconsistencies of human information processing. Second, they can analyse
the information at the "initial screening level" and let the expert spend his or her time analysing
the more difficult aspects of the problem. Third, such systems allow the transfer of cash
management expertise to those firms that do not have such expertise.

Mark L. Defond and mingyi(2007)9 hung had undertaken the study on “investor protection and
analysts cash flow forecasts around the world” they hypothesize that analysts are more likely to
issue cash flow forecasts in countries with weak investor protection because earnings are less likely
to reflect underlying economic performance in these countries. Consistent with our hypothesis,
they find that analysts are more likely to forecast cash flows for firms in countries with weaker
investor protection. they also find that cash flow forecasts are more common in countries with
higher accounting disclosure and larger foreign investment, and among companies that have
greater analyst coverage and that are cross-listed. they note, however, that their investigation is
subject to several limitations that are known to be associated with cross-country research designs.
Specifically, their proxies for broad concepts such as the extent of investor protection may capture
a number of country-level characteristics, suggesting that our regression results may suffer from
correlated omitted variables problems. In addition, because they analyze only 36 countries, their
analysis necessarily has a small number of degrees of freedom. Given these limitations, they
acknowledge that their paper is essentially exploratory in nature and their results should be
interpreted as suggestive.

9
DeFond, M. L., & Hung, M. (2007). Investor protection and analysts’ cash flow forecasts around the world. Review of Accounting
Studies, 12(2-3), 377-419.

46
 2.2 COMPARATIVE STUDY:

Ajay G. Paliwal, Mukesh B. Ahirroo and Dr. V.S.Rana (2015)10 had undertaken study on “cash
flow statement: comparative analysis of financing, operating and investing activity” with the
objectives to ascertain the source of cash and uses of cash, to ascertain the net changes in cash
indicating the difference between source and uses of cash by three activities during the period of
study, to measure the weight of such sources and uses of cash against cash profit position of the
firm and to identify the strength and weakness in cash flow position of the firm. On the basis of
above study they conclude that cash flow statement analysis is important to identify weaknesses
in business operation that can lead the firm towards liquidity crunch. Through cash flow analysis,
company can identify the unproductive use of fund as to ascertain and plan future cash flow.

Andrew Lennard (2014)11 had undertaken study on “Issues relating to cash flow statements and
related disclosures”. There are some basic points that have informed the discussion in this paper:
The usefulness of cash flow disclosures is greatly enhanced if they can be related to information
reported elsewhere in the financial statements in other words if the financial statements are
cohesive, Evidence from outreach suggests that the main categories prescribed by IAS 7,
Information about performance is primarily provided by accruals-based financial statements. The
purpose of cash flow disclosures is not to present an alternative measure of performance, but they
should explain the relationship between accruals-based performance measures and the entity’s
cash generation. Information on changes in working capital is valuable for assisting an assessment
of the efficiency of the management of resources.

M. Hughes, M. Hughes, B. Andrew (2010)12 had undertaken study on “Cash flows: The Gap
between Reported and Estimated Operating Cash Flow Elements”. From the above study they

10
Ahirrao, A. G. P. M. B., & Rana, V. S. Cash Flow Statement: Comparative Analysis of Financing, Operating and Investing Activities.
11
Andrew Lennard (2014) Issues relating to cash flow statements and related disclosures.
12
Hughes, M., Hoy, S., & Andrew, B. (2010). Cash flows: The gap between reported and estimated operating cash flow elements. Australasian
Accounting, Business and Finance Journal, 4(1), 96-114.

47
conclude that they found evidence indicating that users may not be able to accurately estimate the
major components of operating cash flows, i.e. cash collected from customers and cash paid to
suppliers, particularly if they are unable to incorporate the impact of discontinued operations. Their
findings are likely to understate the size of the estimation gaps as we knew what the estimated
figure should be and so were ‘warned’ to look for ad hoc adjustments if the estimation error was
large. Of course, users are not given this ‘warning’ if the direct method is not disclosed in general
purpose financial reports they suggest research on how to improve the disclosures relating to
discontinued operations to reduce the potential for users to make errors in estimating CCC and
CPS. This would be related to an investigation of how users actually deal with these confounding
factors when trying to estimate CCC and CPS if a firm reports operating cash flow using the
indirect method.

Ovidiu megan, camellia hategan, Leonora caciuc, bogdan cotlet (2009)13 had undertaken study
on “the cash flow statement- between true and manipulation”. On the basis of the study they
conclude that The advantage of a cash flow statement, when used in conjunction with the rest of
the financial statement, is that it provides information that enables users to evaluate the changes in
the net assets of an enterprise Cash is one of the major lubricants of business activity, but there are
certain things that cash flow doesn't tell us. It doesn't tell us the profit earned or lost during a
particular period. As it doesn't tell the whole profitability story, cash flow doesn't do a very good
job of indicating the overall financial well-being of the company. On the other hand, the cash flow
statement is a compressed version of the company's check book that includes a few other items
that affect cash, which shows how much the company spent or collected from the repurchase or
sale of stock, the amount of issuance or retirement of debt and the amount the company paid out
in dividends. Being considered to be one of the cleaner figures in the financial statements cash
flow statement is sometime the object of manipulation. Over all cash flow statement is very
necessary for decision makers because it measures the actual money paid out or received by a
company over a certain period of time. Forecasting cash flows is notoriously difficult, but it is still

13
Megan, O., Haţegan, C., Caciuc, L., & Cotleţ, B. (2009). The Cash-Flow Statement–Between True and Manipulation. OF THE UNIVERSITY
OF PETROŞANI∼ ECONOMICS∼, 9(2), 127-136.

48
an extremely valuable exercise to prepare a prediction of what a company’s financial statements
may look like in the future in order to prepare the competition with the concurrence.

Allen k. Hunt , Linda m. Lovata and Michel l. Costigan (2008) 14 had undertaken study s of
“characteristics of companies using different cash flow methods” they conclude that the financial
accounting standard board permits the use of either direct or indirect method for preparing cash
flow statement. The FASB recommends the use of direct method as the indirect method provides
less information than the direct method. Despite this, the majority of companies select the indirect
method. Result indicates that smaller firms with fewer geographic segments are using the direct
method. as organizational complexity increases, companies are more likely to use the indirect
method. Firms with more favorable cash flows are more likely to use the direct method. Firms
with wreakers cash flows prefer to use the indirect method.

Christos Negakis (2006)15 had undertaken study on “the cash flow statement: implications for the
use of the direct or the indirect method” this paper provides a framework, which can be employed
to introduce the indirect method of cash flow from operations. And it demonstrates the articulation
of the financial statement, and the statement of cash flows. By this Student may clearly see the
usefulness of the operating cash flow statement further, students can understand the relation of
cash flow from operating activities and the change of cash balances. They can see the application
of the theory presented by the cash Flow, developing their skills and their critical view.

Yuan Ding, Thomas Jeanjean and Herve Stolowy (2006)16 had undertaken study “the usefulness
of disclosing both direct and indirect cash flows: an empirical study” and they conclude that this
study brings some very robust but however controversial results to the literature: whereas standard

14
Allen k. Hunt, Linda m. Lovata and Michel l. Costigan (2008) characteristics of companies using different cash flow methods.
15
Negakis, C. I. (2006). The cash flow statement: implications for the use of the direct or the indirect method. Managerial Finance, 32(8), 634-
644.
16
Ding, Y., Jeanjean, T., & Stolowy, H. (2006, February). The usefulness of disclosing both direct and indirect cash flows: An empirical study.
In Workshop Comptabilitie-Audit-Publications.

49
setters have a clear preferences for direct method and Serval empirical studies support this
viewpoint, our findings support the usefulness of indirect method, at least in Chinese context.

Negrea Laura, Mati_ Dumitru, Mustata V. Razvan17 had undertaken study on “cash reporting
and creative accounting” this paper conclude that The contribution of the current study is a
synthetic argumentation to why cash flow should be analyzed in the context of creative accounting,
reviewing methods and techniques that distort significantly the results, providing basis for further
study related to the impact of such practices on forecasts of cash flow. Having in view that a wide
majority of researchers consider future cash flow as the best indicator of the probability of
bankruptcy, and although current net profit is the basis of such estimation, we have to admit that
current cash flow provides significant additional information. The intended future research of the
authors’ is actually determining potential manipulation techniques applied by Romanian
companies, by analyzing the financial reports made public by listed firms.

Negrea Laura, Mati_ Dumitru, Mustata V. Razvan18 had undertaken study on “cash reporting
and creative accounting” this paper conclude that The contribution of the current study is a
synthetic argumentation to why cash flow should be analyzed in the context of creative accounting,
reviewing methods and techniques that distort significantly the results, providing basis for further
study related to the impact of such practices on forecasts of cash flow. Having in view that a wide
majority of researchers consider future cash flow as the best indicator of the probability of
bankruptcy, and although current net profit is the basis of such estimation, we have to admit that
current cash flow provides significant additional information. The intended future research of the
authors’ is actually determining potential manipulation techniques applied by Romanian
companies, by analyzing the financial reports made public by listed firms.

17
Laura, N., Dumitru, M., & Razvan, M. V. (2011). Cash flow reporting and creative accounting. Annals of the University of Oradea, Economic
Science Series, 20(2).
18
Elrod, H., & Gorhum, M. J. (2012). Fraudulent financial reporting and cash flows. Journal of Finance and Accountancy, 11, 1.

50
Henry Elrod and Megan Jacqueline Gorhum19 had undertaken study on “Fraudulent financial
reporting and cash flows” This study confirmed the intuitive notion that, for firms without known
fraud, users of financial statements may expect a strong positive correlation between cash flows
from operating activities and income from continuing operations. These results showed the
correlations between cash flows from operating activities and income from continuing operations
were positive and moderate for firms with known fraudulent financial reporting involving sales or
accounts receivable. This information should be useful to auditors, regulators, investors and other
users of financial statements. For a given firm, recent historic relationships between cash flows
from operating activity and income from continuing operations may be examined, taking note of
changes in that relationship not explained or explainable by reference to changes in company
policy such as terms of sale or credit policy, or circumstances such as substantial change in product
mix, etc.

Patricia m. Dechow, s.p.kothari and ross L. Watts (2012)20 had undertaken study on “the
relationship between earnings and cash flows” they test the predictions on a sample of 1337 firms
and they conclude that Current earnings are a better forecast of future cash flows than current cash
flows as predicted by the model. And, as also predicted by the model, the difference in the ability
of current earnings and current cash flows to predict future cash flows is a positive function of the
firm’s expected operating cash cycle. Overall, the evidence suggests the model has some statistical
explanatory power.

Patricia m. Fairfield, scott whisenan and teri Lombardi yohn (2003)21 had undertaken the
study on “ the differential persistence of accrual and cash flows for future operating income versus
future profitability” their investigation is motivated by the finding that, after controlling for current
profitability, growth in non-current net operating assets and operating accruals equivalently
depress one-year-ahead profitability. They argue that a finding of lower persistence of accruals

19
Elrod, H., & Gorhum, M. J. (2012). Fraudulent financial reporting and cash flows. Journal of Finance and Accountancy, 11, 1.
20
Dechow, P. M., Kothari, S. P., & Watts, R. L. (1998). The relation between earnings and cash flows. Journal of accounting and
Economics, 25(2), 133-168.
21
Fairfield, P. M., Whisenant, S., & Yohn, T. L. (2003). The differential persistence of accruals and cash flows for future operating income
versus future profitability. Review of Accounting Studies, 8(2-3), 221-243.

51
relative to cash flows for one-year-ahead operating income would provide persuasive evidence of
earnings management. On the other hand, evidence that accruals are related to growth in invested
capital in the denominator of profitability would suggest another explanation for the lower
persistence of accruals for future profitability. it is more likely attributable to the effect of growth
on future profitability than to earnings management.

Saeed akbar, syed zulfiqar ali shah and Andrew W stark22 had undertaken the study on “the
value relevance of cash flows, current accruals and noncurrent accruals in the UK” This study
investigates whether various partitions of earnings involving combinations of a cash flow measure
of performance and measures of current accruals and non-current accruals improve the ability to
explain market values in the UK relative to using earnings alone. Using a valuation model-based
methodology, and employing a UK sample of non-financial firms for the years 1993 to 2007, their
results suggest strong support for the assertion that cash flows can have incremental value
relevance relative to either earnings or funds flows. By implication, cash flows can have separate
value relevance from total and, in particular, current accruals. There is slightly less consistent
evidence that current and non-current accruals can have separate value relevance but, nonetheless,
the results are still strongly in favor in this respect. As a consequence, they conclude that the
statement of cash flows in the UK provides information useful to UK investors in valuing firms.
Further, requiring a cash flow statement, as opposed to a funds flow statement, improves the
information content of financial statements in the UK.

Mohsen Dastgir, Vali Khodadadi and Maryam Ghayed (2010)23 had undertaken study on “cash
flow valuation using capital cash flow method comparing it with free cash flow method and
adjusted present value method in companies listed on Tehran stock exchange”. The objective of
this survey is to introduce Capital Cash Flow method for firms’ valuation and confirmation of its
efficiency in Iran market through comparing it with two common methods available in market:

22
Akbar, S., Shah, S. Z. A., & Stark, A. W. (2011). The value relevance of cash flows, current accruals, and non-current accruals in the
UK. International Review of Financial Analysis, 20(5), 311-319.
23
Dastgir, M., Khodadadi, V., & Ghayed, M. (2010). Cash flows valuation using capital cash flow method comparing it with free cash flow
method and adjusted present value method in companies listed on Tehran stock exchange. Business Intelligence Journal, 3(2), 45-58.

52
Free Cash Flow and Adjusted present value. For the same purpose, 54 firms listed on Tehran Stock
Exchange were selected as statistical sample. The required information and data were collected
through stock exchange and other existing financial resources and sites and they were tested by
paired Student’s t-test. Test results showed that by using appropriate discount rate and considering
the value of tax shield in calculations, the application of Capital Cash Flow in firms’ valuation
would lead to the same results as those of two above-mentioned methods.

Vladimir gatchev, todd pulvino and vefa tarhan24 had undertaken study on “the interdependent
and intertemporal nature of financial decision: an application to cash flow sensitivities”. on the
basis of this study their results are intuitive in the context of relative adjustment costs of
investments and financing. Capital expenditures typically reflect long-term investment programs
and, absent severe financial market frictions, are unlikely to be affected by short-term cash flow
fluctuations. Financing decisions, in comparison, are much less costly to change and therefore
provide a cheaper alternative to accommodate fluctuations in cash flows. This intuition is
consistent with the principal results presented in this paper---that financing/cash flow sensitivities
are much larger than investment/cash flow sensitivities regardless of financial health.

2.3 CASH MANAGEMENT:

BDC’s Research and Market Intelligence Team (2014)25 had undertaken study on “cash flow
management”. They decide to do review some of the pertinent literature on cash flow management,
take a closer look at the behavior and mindset of Canadian business leaders, figure out who is
involved in and responsible for various components of cash flow management and, identify some
of the tools and techniques used, including key performance indicators and benchmarking. The
expression “cash is king” is popular for a reason. Cash flow management is as critical as a
profitable business model to the success of a business. In this report, the BDC team wanted to

24
Gatchev, V. A., Pulvino, T., & Tarhan, V. (2010). The interdependent and intertemporal nature of financial decisions: An application to cash
flow sensitivities. The Journal of Finance, 65(2), 725-763.
25
BDC’s Research and Market Intelligence Team (2014) “cash flow management.

53
emphasize the importance of cash flow management for small and medium-sized businesses. Their
survey found that a significant percentage of Canadian businesses are not practicing effective cash
flow management. Given its importance and the fact the required tools are relatively inexpensive;
more entrepreneurs should adopt this practice. Implementing effective cash flow management
starts at the top and requires senior leaders to understand and participate in its various components.
These components include preparing cash flow projections; comparing them to actual results;
determining and tracking KPIs; and benchmarking against competitors However, business leaders
should first develop their financial literacy and not hesitate to ask for the help of external advisers
to increase their understanding and gain an outside perspective.

Gilbert Uwonda, Nelson Okello, Nicholas G Okello (2013)26 had undertaken study on “cash
flow management utilization by small medium enterprises in northern Uganda” with the objectives
of managing cash flow as accelerating cash inflows wherever possible, delaying cash outflows
until they come due, investing surplus cash to earn a rate of return, borrowing cash at the best
possible terms, maintaining an optimal level of cash that is neither excessive nor deficient. The
research findings revealed that the service sectors of SMEs studied fight an uphill battle from the
start mostly due to cash flow management issues, but became stable after five years. The majority
of these service sectors SMEs studied were unincorporated enterprises that operate as sole
proprietorship, partnership, while others only registered under their professional bodies. Failure
by the private incorporated enterprises within the first year of operation has been due to very many
briefcase private companies registered among other factors. The second obstacle in cash flour
management is the monitoring of cash flows and as revealed in the research findings, a big number
of the sectors of SMES studied could prepare budget but could not stick to them during the
implementation periods, while other SMEs could not exercise budgetary review and budgetary
control. A third hindrance highlighted by the study results with regards to cash flow management
was cash flow controls and as revealed by the study findings, a big number of SMEs owners over
depend on the business income for survival and in meeting other non-business related expenses.

26
Gilbert, U., Nellson, O., & Nicholas, G. O. (2013). Cash management utilization by small medium enterprises in northern Uganda. Merit
Research Journal of Accounting, Auditing, Economics and Finance, (5), 4.

54
Further, it reduces the enterprise levels of long-term solvency and as a result reduces the ability of
such an enterprise to expand its market or product lines.

Cristine do Nascimento Mutti and Will Hughes (2002)27 had undertaken study on “cash flow
management in construction firms”. Construction represents a big share of the industry. It also
presents high levels of insolvency. Failure, for this sector, is a serious problem. Most of the failure,
however, can be avoided. For this to be possible, the causes have to be known. And the major ones
are already known. The major causes of failure are poor management and bad cash flow
management. Existing developments and methods in cash flow forecasting and modelling can
serve as a starting point for managers to rethink their cash flow management. The issue of cash
flow raises questions about how a company could deal with it. If company survival is to do with
cash flow, a contractor should be able to manipulate the payouts, in order to hold more money for
longer. However, it is clear that this way of raising working capital only passes bigger problems
down the supply chain. This apparent need of a better understanding of the relation of financial
structure and payment regimes is what motivates the research, which will follow this paper.

Marios Tittonis (1995)28 had undertaken study on “cash flow management” with the objectives,
1.to gather information and analyses the factors that includes cash flow problems, 2.To identify
ways of managing these factors, 3.to examine the impact that cash flow has on the financial
statement of the firm and their debt capital and 4. To prepare a guideline for proper cash flow
management. By above study it can be claimed that by reducing the two main factors (debtors and
inventories) and by increasing the third factor (creditors) cash flow management is improved.
Profit increased because the interest payable was reduced, since the bank overdraft or the loans are
decreased. And the most important change in the sensitivity analysis is the increase of cash and
cash equivalents.

27
Mutti, C. D. N., & Hughes, W. (2002). Cash flow management in construction firms.
28
Marios Tittonis (1995) cash flow management.

55
The outline case on “Improving cash flow using credit management”29. And on the basis of
this they conclude that as outlined at the outset, cash flow is the life blood of all businesses, and it
becomes even more important when going through an economic downturn. Cash flow has to be
managed. Cash management is as much an integral part of the business cycle as any other part of
the process. The effect of cash is real, immediate and, if mismanaged or not managed, it is very
unforgiving. It can be your ruination, but with care will be your servant and reward. Hopefully,
this booklet has helped to illuminate where cash comes from and where it goes in the cash flow
cycle, and provided you with insight into the basics of cash and credit management. Remember,
sound cash management will give your business just as much of an edge in your transactions as,
say an improvement in your manufacturing process or service delivery. Control and prosper.

2.4 USEFULNESS OF CASH FLOW:

H. Y. Hung, Monica Chan Annie Yei (1995)30 had undertaken study “the usefulness of cash flow
statement “they mentioned that use of cash flow reporting has been in the rise for the past few
years to ensure that cash flow are reported in a form that highlights the significant components of
cash flow statement and facilitates comparison of the cash flow performance of direct business.
Because there are direct and indirect methods of the cash flow statement in Hong Kong context
using empirical study. It was suggested from the findings that cash flow statements are preferred
by a lot of users.

Jing liu, doron nissim and Jacob Thomas (2007)31 had undertaken on study “is cash flow king
in valuations?” with the objective of forecasts rather than reported numbers, dividends as well as
operating cash flows, individual industries rather than all industries combined and companies in
markets beyond the united states. their analysis suggests that it is not. they found that reported
earnings dominate reported cash flows as summary measures of value in the United States. We

29
Basu, S. N., & Rolfes, H. L. (1995). Strategic credit management. John Wiley & Sons.
30
Hung, H. Y., Chan, M., & Yei, A. (1995). The usefulness of cash flow statements. Asian Review of Accounting.
31
Liu, J., Nissim, D., & Thomas, J. (2007). Is cash flow king in valuations? Financial Analysts Journal, 63(2), 56-68.

56
conclude with three caveats. First, because valuations based on multiples can be calculated only
when the value driver is positive, we excluded companies with no positive values for the multiples
examined.

Farshadfar, shadi, monem and reza32 had undertaken study on “evidence on the usefulness of
direct method cash flow components for forecasting future cash flows” they provide further
evidence that disaggregating operating cash flow into its components enhances the predictive
ability of aggregate operating cash flow in forecasting future cash flows. they also find that cash
received from customers and cash paid to suppliers and employees complement each other in
enhancing the overall predictive ability of cash flow components. The results are robust to a battery
of sensitivity tests, including control for industry membership, firm size, profitability, negative
cash flows, and the length of the operating cash cycle. their results contribute to the policy debate
as to whether reporting of the direct method cash flow statement should be mandatory.

2.5 CASH FLOW SENSITIVITY:

Inder k. Khurana, xiumin martin and reynolde Pereira (2006)33 had undertaken the study on
“financial development and the cash flow sensitivity of cash” with the objective of to find the
sensitivity of cash holdings to cash flows decreases with financial development. On the basis of
this study they conclude that Consistent with our prediction, they find that the cash flow sensitivity
of cash decreases with a country's level of financial development. Stated differently, they find
firms from financially underdeveloped countries exhibit a greater marginal propensity to save cash
out of their current period cash flows. This is consistent with the view that financial development
eases financing constraints by improving firms' access to lower cost external financing. Overall,
our findings complement prior research that posits financial underdevelopment imposes
constraints by raising the cost of external financing.

32
Farshadfar, S., & Monem, R. (2013). Further evidence on the usefulness of direct method cash flow components for forecasting future cash
flows. The international journal of accounting, 48(1), 111-133.
33
Khurana, I. K., Martin, X., & Pereira, R. (2006). Financial development and the cash flow sensitivity of cash. Journal of Financial and
Quantitative Analysis, 787-807.

57
Huafeng chen and shaojun chen34 had undertaken the study on “investment cash flow sensitivity
cannot be a good measure of financial constraints: evidence from the time series” We study the
evolution of investment-cash flow sensitivities since the 1960s. We find that investment-cash flow
sensitivity has declined over the entire sample period and has completely disappeared in recent
years, even during the 2007-2009 credit crunch. If one believes that financial constraints have not
completely disappeared, then investment-cash flow sensitivity cannot be a good measure of
financial constraints. they perform further tests to examine whether investment-cash flow
sensitivity can be saved as a valid measure. they examine whether the decline in this measure can
be explained by the rising importance of R&D and firms with negative cash flows. they examine
the relation between investment-cash flow sensitivity and other measures of financial constraints
over time. they also examine the time-series pattern of the new issue activity. they examine
whether the importance of cash flow as a source of financing has decreased over time. Finally,
they examine whether the results are driven by increasing levels of cash reserves. Our evidence
suggests that investment-cash flow sensitivity is not a good measure of financial constraints, and
that future empirical work should not use this variable as a valid proxy for financial constraints.

Vladimir gatchev, todd pulvino and vefa tarhan35 undertook study on “the interdependent and
intertemporal nature of financial decision: an application to cash flow sensitivities”. they develop
a dynamic multi-equation model where firms make financing and investment decisions jointly
subject to the constraint that sources must equal uses of cash. they argue that static models of
financial decisions produce inconsistent coefficient estimates and that models that do not
acknowledge the interdependence among decision variables produce inefficient estimates and
provide an incomplete and potentially misleading view of financial behaviour. They use their
model to examine whether firms are constrained from accessing capital markets. Unlike static
single-equation studies which find that firms under invest when faced with cash flow shortfalls,
they conclude that firms maintain investment by borrowing.

34
Chen, H. J., & Chen, S. J. (2012). Investment-cash flow sensitivity cannot be a good measure of financial constraints: Evidence from the time
series. Journal of Financial Economics, 103(2), 393-410.
35
Gatchev, V. A., Pulvino, T., & Tarhan, V. (2010). The interdependent and intertemporal nature of financial decisions: An application to cash
flow sensitivities. The Journal of Finance, 65(2), 725-763.

58
Huafeng chen and shaojun chen36 had undertaken the study on “investment cash flow sensitivity
cannot be a good measure of financial constraints: evidence from the time series”. they examine
whether the decline in this measure can be explained by the rising importance of R&D and firms
with negative cash flows. they examine the relation between investment-cash flow sensitivity and
other measures of financial constraints over time. they also examine the time-series pattern of the
new issue activity. They examine whether the importance of cash flow as a source of financing
has decreased over time. Finally, they examine whether the results are driven by increasing levels
of cash reserves. Our evidence suggests that investment-cash flow sensitivity is not a good measure
of financial constraints, and that future empirical work should not use this variable as a valid proxy
for financial constraints. they find that measurement error in Tobin’s q helps explain the decline
in investment-cash flow sensitivity, and the information content in cash flow regarding investment
opportunities has declined over time. However, measurement error does not completely explain
the patterns in investment-cash flow sensitivity. The decline and disappearance are unlikely to be
explained by changes in firm composition, improvement in corporate governance, or changes in
market power

2.6 CASH FLOW FORECASTING:

Annika Pitkanen (2016)37 had undertaken study of “ cash flow forecasting” the purpose of this
thesis research and development project was to develop a cash flow forecast model for the case
company that operates on building constructions field. The author evaluates that the project team
managed to reach the objective with the exception of few attributes. To achieve a successful cash
flow management in the case company the author suggests that the rest of these necessary attributes
will be defined in a technical sense to complete the forecasting model.

Abdinassir Ali Abdi (2011)38 had undertaken study on “the relative ability of earnings and cash
flows data in forecasting future cash flows: evidence in Malaysia” This study provided evidence

36
Chen, H. J., & Chen, S. J. (2012). Investment-cash flow sensitivity cannot be a good measure of financial constraints: Evidence from the time
series. Journal of Financial Economics, 103(2), 393-410.
37
Pitkänen, A. (2016). Cash Flow Forecasting: Proposal for New Long-Term Cash Flow Forecast in the Case Company.
38
Abdinassir, A. A. (2012). The Relative Ability of Earnings and Cash Flows Data in Forecasting Future Cash Flows: Evidence in
Malaysia (Doctoral dissertation, Universiti Utara Malaysia).

59
that detailed cash flow from operations has more power in predicting future cash flows than
earnings and traditional cash flow measures. Based on sample of 100 Malaysian Companies
between2005-2010 shows that independent variables and depreciation has strong relationship to
dependable variable which is Free Cash Flows. The predictability of both earnings DPS, Capexs,
depreciations have highly statistically significant to cash flows. The main findings based the results
shows EBITDA is the highest affected of free cash flows while DPS is lowest affected by free cash
flows.

Leslie hodder, Patrick E. Hopkins and david A. Wood (2006)39 had undertaken study on “the
effect of financial statement and informational complexity on cash flow forecasts” their analysis
attempts to partially address these concerns by (1) providing our participants with accuracy-based
compensation and cumulative forecast-by-forecast feedback and (2) supplementing our
experimental results with a quasi-experimental archival analysis of publicly released cash-flow
forecasts. The outcome-feedback mechanism operationalized in our experiment is more
transparent than those appearing in real-world financial-forecasting settings and is more
comprehensive and informationally complete than the outcome feedback appearing in similar
accounting-related experiments. Indeed, the form of outcome feedback included in the present
study has informational properties that typically yield the highest levels of learning in prior
research.

A study on “the effect of SFAS 142 on the ability of goodwill to predict future cash flows”40
had examined the effect of statement of financial accounting standard no.142 on the ability on
goodwill to predict future cash flows. SFAS 142 allows substantial managerial discretion and leads
to a significant magnitude of economic impact on financial statements, resulting in critical debates
over the consequence of its adoption. they found that the ability of goodwill to predict future cash
flows has improved since the Financial Accounting Standards Board (FASB) adopted SFAS 142.
Contrasting with the pervasive view based on the opportunistic reporting hypothesis. Overall,
contrary to the position of critics of SFAS 142, the results support the view taken by the FASB

39
Hodder, L., Hopkins, P. E., & Wood, D. A. (2008). The effects of financial statement and informational complexity on analysts’ cash flow
forecasts. The Accounting Review, 83(4), 915-956.
40
Lee, C. (2011). The effect of SFAS 142 on the ability of goodwill to predict future cash flows. Journal of accounting and public policy, 30(3),
236-255.

60
and proponents of SFAS 142: eliminating systematic amortization and adopting fair value
estimates improve representational faithfulness of goodwill reporting.

Leslie hodder, Patrick E. Hopkins and david A. Wood41 had undertaken the study on “the effect
of financial statement and informational complexity on cash flow forecasts”. On the basis of this
study they find (1) cash flow forecast have lower forecast error and dispersion when the indirect
approach statement of cash flows starts with operating cash flows and adds changes in accruals to
arrive at net income. (2) cash flows forecasts have lower forecast error and dispersion when the
cash flows and accruals are of the same sign with the sign based differences attenuated in the
forward oriented statements of cash flows. They also conduct quasi-experiments to test their mixed
sign versus same sign hypothesis using an archival sample of publicly available value line cash
flow forecasts. They found that value line analysts cash flow forecast exhibits the same pattern of
forecast error as documented in our experiments.

Shadi farshadfar, chew ng and mark bramble 42 undertook the study on “the relative ability of
earnings and cash flow data in forecasting future cash flows: some Australia evidence”. This paper
examines the relative predictive ability of earnings, cash flow from operations as reported in the
cash flow statement and two traditional measures of cash flows in forecasting future cash flows
for Australian companies. Further, an empirical investigation of the extent to which firm size, as a
contextual factor, influences the predictability of earnings and cash flow from operations is
presented. On the basis of this study they provide evidence that reported cash flow from operations
has more power in predicting future cash flows than earnings and traditional cash flow measures.
Further, the predictability of both earnings and cash flow from operations significantly increases
with firm size. However, the superiority of cash flow from operations to earnings in predicting
future cash flows is robust across small, medium and large firms.

41
Hodder, L., Hopkins, P. E., & Wood, D. A. (2008). The effects of financial statement and informational complexity on analysts’ cash flow
forecasts. The Accounting Review, 83(4), 915-956.
42
Farshadfar, S., Ng, C., & Brimble, M. (2008). The relative ability of earnings and cash flow data in forecasting future cash flows. Pacific
Accounting Review.

61
2.7 STUDY IN PARTICULAR AREA:

Mohammad Ashrafuzzaman and Md. Tanim-Ul-Islam (2015)43 had undertaken study on

“statement of cash flows disclosure: a study on listed financial institution in Bangladesh”. There
are 556 companies are listed in the Dhaka Stock Exchange. DSE classified these companies into
22 industry categories. The study is conducted for a period of recent five financial years, from
2010 to 2014. This is a descriptive research and no statistical techniques were applied. The result
of the above study is the significance of this study is that the stakeholders of these companies can
know whether these companies prepare their cash flow statement in accordance with the related
accounting standard and other regulatory laws. Due to time constrain the study period was only
period was only five years and no statistical techniques were used because of its descriptive nature.

Ramlugun Vidisha Gunesh and Hosanee Priscille (2014)44 had undertaken study on “user’s
perception on cash flow reporting practices in Mauritius”. The study demonstrates that all
respondents from the sample claim they use the indirect cash flow reporting format. However,
users have a preference for the direct cash flow reporting method as far as their relevance,
reliability and decision usefulness power are concerned. In addition, as far as under sand ability is
concerned, results suggest that users prefer the indirect method. The study provides an insight on
perception of users on the usefulness of the direct and indirect cash flow reporting method. The
main limitation of the study pertains to the sample size. Given that only 81 respondents participated
in the study, results are not generalizable. Therefore, perception of users will be assessed by having
a bigger sample and investigate differences among and between user groups.

Karlis Substnieks (2014)45 had undertaken study on “the relationship of cash flows: evidence
from Latvian companies” . The present data study covers data from 52 Latvian companies. The
total number of observations is 507, ranging within the period from 1995 to 2013. A typical Latvian
enterprise relies on the operating cash flow to create the investing cash flow and does not need to
rely on external sources of financing. The majority of the companies in the study are in the maturity

43
Mohammad Ashrafuzzaman and Md. Tanim-Ul-Islam (2015) statement of cash flows disclosure: a study on listed financial institution in
Bangladesh.
44
Ramlugun, V. G., & Hosanee, P. (2014). USERS'PERCEPTION ON CASH FLOW REPORTING PRACTICES IN MAURITIUS. Studies in
Business & Economics, 9(3).
45
Karlis Substnieks (2014) the relationship of cash flows: evidence from Latvian companies.

62
phase of their development. Of the operating cash flow, 9.2% is influenced by the investing cash
flow one year before. The investing cash flow has a significance impact on the operating cash flow
one year later. If the investing cash flow ratios decrease by one unit, the operating cash flow ratio
increases by 26.3% points. Investment does pay, and the investing cash flow should be used in
cash flow prediction. An additional challenge for future research would be find such a relationship
with operating cash flow two or more years ahead.

Zeljana Aljinovic Barac (2012)46 had undertaken study on “voluntary disclosure of cash flows
information and company’s characteristics: evidence from the Croatian capital market”. The
primary goal of this paper is to analyse financial and qualitative characteristics of companies that
provide extensive cash flow disclosure. The paper provides information about disclosure practices
of Croatian companies as a case of bank oriented economy with emerging capital market, with
regard to a variety of company’s specific factors which can be found as contribution. Summarizing
theoretical and empirical results of the research, the following recommendations can be derived:
1. the international standards setters as well as national legislative authorities should aim to make
mandatory the publication of cash flow statement for all entities. 2. Future researches should aim
to explore cash flow reporting practise in more detail.

Ross Kirkham (2012)47 had undertaken study on “liquidity analysis using cash flow ratios and
traditional ratios: the telecommunications sector in Australia”. This study provides evidence of the
importance of using the cash flow ratios as a means of testing the validity of the conclusions that
can be made from analysis of traditional liquidity ratios alone. The analysis highlights the
usefulness of the cash flow ratios in conducting an investigation of the financial statement of
companies. The implications of this study are that in essence the determination of cash flow ratios
provides a more holistic approach to the analysis of the liquidity position of companies and in
doing so becomes a means for making better decision based on the data. For the purpose of the

46
Aljinović Barać, Ž. (2012). Voluntary disclosure of cash flows information and company's characteristics: evidence from the Croatian capital
market. Croatian Operational Research Review, 3(1), 192-202.
47
Kirkham, R. (2012). Liquidity analysis using cash flow ratios and traditional ratios: The telecommunications sector in Australia. Journal of
New Business Ideas & Trends, 10(1), 1-13.

63
evaluation of financial data the cash flow ratios provide a valuable means by which to justify or
question the relevance of the outcomes of traditional ratios.

Mst. Joynab Siddiqua and Mohd. Takdir Hossan (2008)48 had undertaken study “cash flow
statement disclosures in pharmaceutical companies: Bangladesh perspective “ with the objective
of to identify the current practice of cash flow statement of pharmaceutical companies in
Bangladesh and to provide present cash flow statement format, structure and reporting on the basis
of information provided in annual reports. From this they conclude that a materially misstated cash
flow statement, whether it is in terms of incorrect classification in the categories or numerical
accuracy, can be misleading to the users and can lead to wrong decision taken by the users of the
statement.

Mark A. Clatworthy, Christopher K.M. Pong, Woon K. Wong49 had undertaken study on “the
role of accruals and cash flows in explaining UK stock returns and the impact of auditor quality”
This paper examines the relative importance of earnings and cash flow in explaining the variance
of unexpected UK stock returns using a variance decomposition approach. Based on a variance
decomposition framework using a sample of UK listed companies, this study examines the
importance of accounting information in driving stock returns with particular emphasis on the
relative role of accruals and cash flow and the importance of auditor type as a proxy for audit
quality. Our study represents the first non-US research employing the variance decomposition
approach to investigate the importance of accruals and cash flows in explaining variation in stock
returns. Although there is research indicating that these apparently similar accounting regimes can
produce marked differences in the accounting/market relationships. further research will be
necessary to examine the extent to which these relationships are affected by international
boundaries and by the respective accounting system/standards used to generate the earnings
components.

48
Mst. Joynab Siddiqua and Mohd. Takdir Hossan (2008) cash flow statement disclosures in pharmaceutical companies: Bangladesh perspective.
49
Clatworthy, M. A., Pong, C. K., & Wong, W. K. (2010). The Role of Accruals and Cash Flows in Explaining UK Stock Returns and the
Impact of Auditor Quality. Centre for Global Finance-Working Paper Series (ISSN 2041-1596)-Paper, (04/10).

64
Christian Leuz (2000)50 had undertaken study on “the development of voluntary cash flow
statements in Germany and the influence of international reporting standards”. this paper studies
the determinants of voluntary and international cash flow statement for a sample of Large German
firms at three different points in time. In 1992, the majority of sample firms did not provide cash
flow statements. Only four years later, this situation had completely changed. In 1996, most sample
firms disclosed cash flow statement in line with international reporting practice. Finally, the
regression suggests similar determinants for the adoption of international cash flow statement.
They found that firms with foreign listing, higher trading volume, free float, and capital intensity
are more likely to adopt international statement. These findings support the idea that capital market
benefits drive voluntary disclosures that are in line with international practices, even if there is no
regulation.

2.8 CASH FLOW FROM OPERATING ACTIVITY:

Judy Payburn (2003)51 had undertaken study on “the association of operating cash flow and
accruals with security returns “and from above studies the results reported here, it appears that
operating cash flow , aggregate accruals , and current accruals are consistent with the information
set used to value equity securities. The study does not allow an interpretation of the specific role
accruals play in valuation process. The results do encourage further research that may improve our
understanding of the usefulness of accruals to investors.

Jeffrey hales and stevem orpurt (2013)52 had undertaken the study on “a review of academic
research on the reporting of cash flows from operations” they provide a comprehensive review of
academic research related to direct method cash flow presentation. While many financial statement
users have stated a preference for the direct method, few accounting standard setters around the
world have required it, and, given a choice, most entities present operating cash flows using the
indirect method. Our review indicates that academic research has generally found direct method
cash flow information to be decision useful. Also, research finds that direct method information is

50
Leuz, C. (2000). The development of voluntary cash flow statements in Germany and the influence of international reporting
standards. Schmalenbach Business Review, 52(2), 182-207.
51
Judy Payburn (2003) the association of operating cash flow and accruals with security returns.
52
Hales, J., & Orpurt, S. F. (2013). A review of academic research on the reporting of cash flows from operations. Accounting Horizons, 27(3),
539-578.

65
reflected in stock prices indicating that users appear to utilize this information when available.
However, there are, as of yet, no studies detailing how this information makes its way into stock
prices. Finally, the evidence we review suggests that direct method information is economically
significant and that the recurring benefits than many firms derive from providing direct method
information likely exceed recurring costs. Our review should be of interest to academics
researching cash flow reporting and also to policy makers as they continue debating the merits of
the direct method presentation of operating cash flows.

2.9 ARTICULATION:

Michael S. Wilkins and Martha L. Loudder (2000)53 had undertaken study on “articulation in
cash flow statement: a resources for financial accounting courses” This paper presents a list of
publicly-traded companies for which clean financial statement articulation exists. In addition, the
paper provides a description of the process used to compile the list, and an analysis of the reporting
practices that were observed during the compilation process. It is important to note that the firms
in the articulation sample are not the only publicly-traded firms having articulating financial
statements. The primary goal of this paper is to facilitate the efficient introduction of real world
financial data into financial accounting courses, not to produce an exhaustive list of all companies
that have transparent financial statements. Without question, there are many articulating firms that
do not survive the sample screens; however, the list of companies provided in Table I should prove
to be a very useful resource for financial accounting instructors who wish to incorporate actual
financial statement data into their courses.

Juha kinnunen and markku koskela54 had undertaken the study on “do cash flows reported by
firms articulate with their income statement and balance sheets?” The overall findings indicate that
reported cash flows do not always articulate with income statements and balance sheets and that
non-articulation can be observed in cash flows from operating, investing and financing activities.

53
Wilkins, M. S., & Loudder, M. L. (2000). Articulation in cash flow statements: a resource for financial accounting courses. Journal of
Accounting Education, 18(2), 115-126.
54
Kinnunen, J., & Koskela, M. (1999). Do cash flows reported by firms articulate with their income statements and balance sheets? Descriptive
evidence from Finland. European Accounting Review, 8(4), 631-654.

66
The differences between reported and estimated cash flows prove to be mostly random. The
findings on cash flows from operating activities indicate that differences attributable to operating
income and working capital are partially countervailing. The findings also suggest that the
differences do not materially affect firms’ relative rankings based on financial ratios. A detailed
analysis of an individual company indicates that differences arising from the allocation of short-
term liabilities to operating and financing activities can be important. Overall, the results call for
the refinement of the standards and guidelines of cash flow reporting practices.

2.10 OTHER:

Fred Petro, Farrell Gean (2014)55 had undertaken study on “A Logical Approach To The
Statement Of Cash Flows”. The purpose of this paper has been to logically explain the indirect
approach of cash flow whereby an understanding is established together with the mechanics of
preparing the document. The reader should find this logical approach to preparing the indirect
method statement of cash flows reasonably understandable and useful. The advantages of this
approach include: (1) an acceptable means to logically and analytically understand the statement
of cash flows; (2) a manageable level of retention; and (3) eliminating the reliance on cumbersome
worksheets which add confusion and complexity to completing the statement of cash flows. An
analysis, completed from a brief to an extended time period, can provide useful insight into firm
operations. However, by separating cash flow from operations and income from operations, a new
dimension of the firm is added. If we stay with the three prongs approach as endorsed by FAS 95,
there are two issues that need additional research. First, consider the purchase and sale of equity
and debt instruments as investment activities. Second, FAS 95 currently leaves interest expense in
the operating activities category.
Professor Terry Boyd (2002)56 had undertaken study on “property cash flow studies: focusing on
model consistency and data accuracy”. This paper addresses the need to provide practical
proposals for the improvement of understanding and application of cash flow studies for property
investment analysis. Researchers have identified model consistency and input data as two major
areas of concern in the application of DCF studies and this study deals with both these issues. It is

55
Petro, F., & Gean, F. (2014). A logical approach to the statement of cash flows. American Journal of Business Education (AJBE), 7(4), 315-
324.
56
Boyd, T. (2003). Property cash flow studies: focusing on model consistency and data accuracy.

67
not an easy task to select the probability profile of the variables and the paper refers to the current
research being undertaken to examine the effect of macro and micro economic and property
indicators on the profile of these variables. The outputs from the case study are a valuation figure
and a range of values that relates directly to the uncertainty inherent in the key input variables of
the exercise.

Helen Kwok and Tuen Mun (2002)57 undertook study “the effect of cash flow statement on
lender’s decision” they found that cash flow information and cash flow statement are used by bank
loan officers in making lending decisions. Subjects were drawn from 4 groups of frequent users of
financial reports: bank loan officers, auditors, financial analyst, accounting academics. This
subject was presented with the annual reports of two loan applicant companies to make two
independent lending decisions based on information provided. Cash flow statement was second
most used financial information. Notes to the value financial statement, rather than the cash flow
statement, was most frequently used.

Yelena larkin (2013)58 had undertaken the study on “brand perception, cash flow stability and
financial policy”. This paper demonstrates that intangible assets play an important role in financial
policy. Using a proprietary database of consumer brand evaluation, he shows that positive
consumer attitude toward a firm’s products alleviates financial frictions and provides additional
net debt capacity, as measured by higher leverage and lower cash holdings. Overall, the findings
indicate that characteristics of intangible assets are just as significant in explaining financial policy
as are tangible assets. The results also suggest that brand Stature can be viewed as an alternative
forward-looking measure of cash flow volatility, which helps reconcile the mixed empirical
evidence on the impact of cash flow volatility on leverage. In addition, this paper explores cross-
sectional differences in cash flow volatility from the perspective of the product market. This paper
helps in understanding the source of volatility by examining characteristics of a firm’s brand.
Finally, the paper shows the importance of the interaction between the fields of marketing and
finance, and suggests that marketing policy such as brand management, and financial policy, such
as capital and cash holding decisions, is interdependent.

57
Helen Kwok and Tuen Mun (2002) the effect of cash flow statement on lender’s decision.
58
Larkin, Y. (2013). Brand perception, cash flow stability, and financial policy. Journal of Financial Economics, 110(1), 232-253.

68
2.10 AUTOMOBILE INDUSTRY:

Sunil luthara, vinod kumar, sanjay kumar and abid Haleem (2011)59 had undertaken study on
”barriers to implement green supply chain management in automobile industry using interpretive
structureal modelling technique- an Indian prespective” with the purpose to develop a structural
model of the barriers to implement GSCM in Indian automobile industry and they conclude that
Eleven barriers to implement GSCM in Indian automobile industry have been identified.
Interpretive Structural Modelling (ISM) methodology has been used for finding contextual
relationships among various barriers to implement GSCM in Indian automobile industry. Market
Competition and Uncertainty; Lack of Implementing Green Practices; Cost Implications;
Unawareness of Customers and Supplier Reluctance to Change Towards GSCM have been
identified as dependent variables. Lack of Government Support Systems; Lack of Top
Management Commitment and Lack of IT Implementation have been identified as the driver
variables. Resistance to Technology Advancement Adoption; Lack of Organization
Encouragement and Poor Quality of Human Resources have been identified as the linkage
variables. No barrier has been identified as autonomous variable. Market Competition and
Uncertainty; Lack of Implementing Green Practices; Cost Implications; Unawareness of
Customers have been identified as top level barriers and Lack of Government Support Systems as
most important bottom level barrier. Removal of these barriers will be help in implementing
GSCM in Indian automobile industry.

Saif imam, ashok tripathi and sudipto sarkar (2012) 60 undertook the study on “lean sigma a
road to success: a perspective of the Indian automobile industry” the paper aims at doing so by
introducing the concept of lean six sigma as an effective cost control tool and it also purposes a
lean six sigma model for the effective lean sigma execution in the automobile industry. After a

59
Luthra, S., Kumar, V., Kumar, S., & Haleem, A. (2011). Barriers to implement green supply chain management in automobile industry using
interpretive structural modeling technique: An Indian perspective. Journal of Industrial Engineering and Management (JIEM), 4(2), 231-257.
60
Imam, S., Tripathi, A., & Sarkar, S. (2012). Lean sigma a road to success: a perspective of the Indian automobile industry. Global Journal of
Research in Engineering, 12(1-A).

69
brief review of the history and a detailed analysis of the current state of the Indian auto mobile
industry, it can be concluded that in order to stay ahead of competition and as well as meet the
ever growing demands of the consumer. The industry needs to adapt newer measures for increasing
productivity by eliminating waste and avoiding rework.

Dr. Ronald mani amd Mr. Debasis tripathy (2013)61 had undertaken the study on “a study on
consumer buying behaviour towards two wheeler bikes in context to Indian market”. The survey
is mainly focused on the buying behaviour of the consumer that motivates them to purchase the
two wheeler bikes. This study is based to identify the factors that influences the consumer buying
behaviour of the two wheeler bikes at Allahabad, Lucknow and Varanasi cities of Uttar Pradesh
and the study conclude that Honda and Bajaj shows maximum satisfaction whereas TVS remains
last.

Zafar Hussain and sushil had undertaken study on (2000)62 “active transfer of technology in
the automobile industry: Indian experiences” on the basis of this study they conclude that The
brightest spot which came across during the course of study was enthusiasm shown by people
working in these organizations to absorb the state-of-the-art technology and innovating these
borrowed technologies. The absence of a technology strategy, technological mission and vision,
and lack of faith and support from top management are slowing down the process of technology
adoption in the Indian automobile industry at large. The emphasis has been on developing core
products and does not seem to be on cultivating core competencies. A strategic shift in the attitude
of Indian automobile giants is now called for if they have to emerge as global players in world’s
most competitive industry.

61
Dr. Ronald mani amd Mr. Debasis tripathy (2013) a study on consumer buying behaviour towards two wheeler bikes in context to Indian
market.
62
Husain, Z., & Sushil. (2000). Active transfer of technology in the automobile industry: Indian experiences. International Journal of Services
Technology and Management, 1(2-3), 236-280.

70
Priyanka jain (2015)63 undertook the study on “a study of customer satisfaction of teo wheelers
on Yamaha” with the objective of to view the satisfaction level of the customers of two wheeler
vehicle in Yamaha. On the basis of this study they conclude that from the survey they have done
the Yamaha bikes are known for their designs and performances and the satisfaction is high
towards all other factors except mileage. Youth is the target for Yamaha, if Yamaha satisfied its
customers with the mileage and free services.

Manish kumar sagar and deepali singh(2012)64 had undertaken the study on “supplier selection
criteria: study of automobile sector in India”. This research aimed to identify the most important
criteria to be used as a baseline for a supplier selection process of automobile sector in India. The
biggest challenge the most of the automobile industries is change of mindset of the purchasing and
traditional business approach. Supplier selection starts with setting of the strategic goal or strategic
decision about the single sourcing and multiple sourcing. After deciding the strategic goal,
organization has to decide the various selection criteria based on organization ‘s requirement. The
researcher found out 21 criteria which are selected for supplier selection purpose in Indian
automobile industry which is based on the survey results.

Dr.anubha shrivastva(2014)65 had undertaken study on “a comprehensive study of performance

of Indian automobile industry- a stock market perspective” with the objective to understand the
economic indicators supporting Indian automobile, to evaluate and analyze the growth and trend
of the automobile sector, to analyze the financial performances of selected automobile companies
in the automobile sector, to analyze and compare the performances of the index securities of the
leaders in the various segments of the automobile and to find out the extent of relationship between
automobile sector index with the market index. On the basis of this study she concludes that
Company analysis for Tata motors is saying that they will attract investors with the help of their
dividend pay-out percentages. Their EPS is showing a negative trend but the dividend pay-out is

63
Priyanka jain (2015) a study of customer satisfaction of teo wheelers on Yamaha.
64
Sagar, M. K., & Singh, D. (2012). Supplier selection criteria: Study of automobile sector in India. International Journal of Engineering
Research and Development, 4(4), 34-39.
65
Dr. anubha shrivastva (2014) a comprehensive study of performance of Indian automobile industry- a stock market perspective.

71
on the rise. Company analysis highlights the fact that Maruti Suzuki rarely uses the debt component
in the financing of their operations. All the income is for the shareholders or for retaining. They
need to be concerned about the decreasing current ratio. Company analysis also tells that Mahindra
and Mahindra ltd are on the right track. Their debt equity is decreasing every year, EPS is
increasing every year and they have a dividend pay-out that would attract any investor.

Sree harsha bandaru(2015)66 had undertaken study on “alternative transmission system for 4
wheeler”. The purpose of this is to overcome the shortcoming of differential and provide automatic
transmission for better drivability. On the basis of this study she concludes that the alternate
transmission component and the smart parking system are fabricated. Friction losses in the
transmission component can be reduced by using oil which is used in cvt. The transmission
component can be used in passenger cars. The smart parking system can be easily implemented in
cars.

Vikram shende(2014)67 had undertaken study on “analysis of research in consumer behaviour of

automobile passenger car customer” and he conclude that From study there are various major class
of consumer behaviour determinants and expectations, namely socioeconomic, psychological,
political, geographical, demographic and Product & Technology. Further classification of human
behaviors under main categories will enable car manufacturer to align their strategies in
concurrence to customer behaviour. While purchasing mini segment car though customer is highly
cost conscious but this segment is also upgrading their requirements and due to rise in disposable
income, with in segment migration is observed, Customer is more inclined to purchase Suzuki
Swift, 120. For mid-size segment customer focus is for safety, driving & seating comfort, brand.
Also this segment requires value for money, best features and customer friendly vehicles. In higher
segment cars like Executive and Premium brand image is main deciding factor which gives
assurance of meeting their needs in terms of safety, performance and feature requirements.

66
Bandaru, S. H. (2015). Alternative Transmission System for 4 Wheeler. International journal of mechanical engineering and robotics
research, 4(1), 445-454.
67
Shende, V. (2014). Analysis of research in consumer behavior of automobile passenger car customer. International Journal of Scientific and
Research Publications, 4(2), 1.

72
Kaliraj s68 had undertaken study on “liberalisation and its impact on Indian automobile industry
an analysis” with the objective to evaluate the impact of liberalisation on the growth and
performance of automobile industry in India, to assess in detail the trend in production, sales,
exports and technological tie up in Indian automobile industry after the implementation of
liberalisation policy, to study the role of auto component industries for the development of
automobile industry and to study the relationship between the growth of the automobile industry
and infrastructure especially with references to roads and the findings of the study reveal that the
result relating to the impact of liberalisation on the development of the automobile industry as a
whole as neither robust nor cheerless. Liberalisation had a mixed impact on the industry.

Neelam and mr. Nirmal dhir(2017)69 had undertaken study on “performance evaluation and
capacity estimation for selected undisciplined intersections in Gurgaon city” and they aims to study
and explore the capacity estimation for an undisciplined junctions. On the basis of this study they
conclude that Since the vehicles differ in various ways as per their characteristics, the classified
gap acceptance behaviour was studied through the estimation of critical gap by each type of vehicle
using Raff’s Method. The critical gap value is lowest for only 2 wheelers as 1.25 seconds. It is
found highest for 3 wheelers as 1.78 seconds. For the same, when cars were considered, the critical
gap value obtained is 1.425 seconds. This variation can be related to the vehicular characteristics
such as magnitude and acceleration rate due to which they are found to differ from each other.

A. Vijay Kumar and S. Sri Devi70 had undertaken study on “growth and corporate profitability:
a study in Indian automobile industry” and on the basis of this study they conclude that there was
considerable persistence of profitability in Indian automobile companies, greater size of Indian
automobile companies means increased profitability, greater resources to debt by Indian

68
Kaliraj, S. Liberalisation and its impact on Indian automobile industry an analysis.
69
Neelam and mr. Nirmal dhir (2017) performance evaluation and capacity estimation for selected undisciplined intersections in Gurgaon city.
70
Vijayakumar, A., & Devi, S. (2011). Growth and corporate profitability: A study in Indian Automobile Industry. SMART Journal of Business
Management Studies, 7(2), 62-74.

73
automobile companies means diminished profitability and liquidity also appears to be relevant in
explaining the profitability of Indian automobile companies.

2.12 STATISTICAL ASPECT:

Noor salfizan fawzi, amrizh kamaluddin and zuraidah mohd sanusi (2015) 71 undertook the
study on “monitoring distressed companies through cash flow analysis” and purpose of this paper
is to examine the importance of cash flow ratio in determining financial distressed companies. The
objective had been analyzed using the logistic regression model. On the basis of the study they
concluded that solvency and profitability ratios that are based on cash flow variables have
significant relationship with financial distressed.

Leonie jooste (2006)72 had undertaken study on “cash flow ratios as a yardstick for evaluating
financial performance in African business” the aim of this paper is to compare the norms for the
industries in SA with those in the US. Such a comparison may lead to a better understanding of
the financial performance of south Africa industries in an internationally competitive market.

Sulayman H. atieh (2014)73 had undertaken the study on “liquidity analysis using cash flow ratios
as compared to traditional ratios in the pharmaceutical sector in Jordan” the purpose of this study
is to examine the liquidity position of the Jordanian pharmaceutical sector using the traditional
ratios as compared to the more recently developed cash flow ratios. The study showed that there
was example of companies that had good traditional ratios. While their cash flow ratios are weak,
in contrast there were also companies that had poor traditional ratios, but the cash flow ratios
showed a better liquidity position. The cash flow ratios provide more information than traditional
ratios in measuring the liquidity position of the company. As a result, testing the study hypothesis,
and applying SPSS, the significant difference between the cash flow ratios and traditional ratios
are determined to measure the liquidity of the Jordanian pharmaceutical companies.

71
Noor salfizan fawzi, amrizh kamaluddin and zuraidah mohd sanusi (2015) monitoring distressed companies through cash flow analysis
72
Jooste, L. (2006). Cash flow ratios as a yardstick for evaluating financial performance in African businesses. Managerial Finance.
73
Atieh, S. H. (2014). Liquidity analysis using cash flow ratios as compared to traditional ratios in the pharmaceutical sector in
Jordan. International journal of Financial research, 5(3), 146-158.

74
Kisang ryu and shawn jang (2004)74 undertook the study on “performance measurement through
cash flow ratios and traditional ratios: a comparison of commercial and casino hotel companies.
The objective of the study was to examine and compare the financial performance of commercial
and casino hotel companies, using cash flow ratios and traditional ratios from income statement
and balance sheet. The result of this study suggest that casino hotel companies have been in better
liquidity, solvency and profitability conditions than commercial hotel companies over the past five
years. The results indicated that the type of hotel might be one of the influencing factor on
differentiating financial liquidity of the hotel companies.

Surorna barua and anup kumar saha (2015)75 had undertaken study on “traditional ratios vs.
cash flow based ratios: which one is better performance indicator” the primary objective of this
study is to establish the usefulness of the cash flow based ratios in today’s competitive business
world. The second objective is to investigate some cash flow ratios. Third objective is to suggest
a list of cash flow ratios to be included in a financial analysis. After an evaluation of entities by
means of selected cash flow ratios, it was found that cash flow information has explanatory power.
The ratios that are suggested in this study, if used in conjunction with traditional balance sheet and
income statement that will lead to a better indication of the financial strength and weaknesses of
an entity.

Omer faruk gulek and tucan bektas (2019)76 undertook the study on “cash flow ratio analysis:
the case of turkey” the main motivation of this study is to demonstrate the power of the statement
of cash flow by using 8 fundamental cash flow ratios with 10 traditional ratios in the areas of
liquidity, profitability and financial structure. According to the results, firms are not good enough
to generate sufficient cash to maintain activities and there is low quality of income due to the
values in cash quality of sales ratio and quality of income. In addition to high external financing
needs of firm, liquidity is also another big concern for the sample period.

74
Ryu, K., & Jang, S. (2004). Performance measurement through cash flow ratios and traditional ratios: A comparison of commercial and casino
hotel companies. The Journal of Hospitality Financial Management, 12(1), 15-25.
75
Surorna barua and anup kumar saha (2015) traditional ratios vs. cash flow based ratios: which one is better performance indicator
76
Omer faruk gulek and tucan bektas (2019) cash flow ratio analysis: the case of turkey

75
Nandhu n. and dr.ranjith kumar (2020)77 had undertaken study on “effectiveness of cash flow
ratios to measure the performance divergences of selected steel companies in India” the objective
of this study is to highlight the financial efficiency of an organization with support of cash flow
measures during the study period. The present study has found that sufficient cash maintenance
has encouraged the organizations to make it their operations without disrupt. Adequate cash
management supported a lot to the organization to make it their cash flow easily. It has been noted
that opportunity cast is high at a high level of cash balance. Cash flow ratios yield the significant
result during the study period of the selected ratios.

Leonie jooste (2007)78 had undertaken the study on “an evaluation of the usefulness of cash flow
ratios to predict financial distress” this article investigates cash flow ratios suggested by various
researchers and suggested a list of ratios with the potential to predict financial future. The
comparison revealed that cash flow ratios have predict value with the cash flow to total debt
identified as best indicator in failure. It was also determined that although failed entities have lower
cash flows that non failed entities, they also had smaller reserves of liquid assets. Furthermore,
they have less capacity to meet debt obligations and they tend to incur more debt. The ratios of the
failed entities were unstable and fluctuated from one year to the next. Finally, bankruptcy could
be predicted three years prior to financial failure.

Maxwell Samuel amuzu (2010)79 undertook the study on “cash flow ratio as measure of
performance of listed companies in emerging economies: The Ghana example” and they concluded
that for most cash flow ratios, it is observed that the Ghanaian company is an competitive as its
US counterparts. The comparison of the individual data points from 2003-2005 for all the
companies verified that the Ghanaian company could measure as well to the US companies in the
same industries. For some of the cash flow ratio measured, the Ghanaian companies did better as
compare to their US counterparts. It was also evident that Ghana is competitive when it comes to
the milk products and alcoholic beverages industries. On the other hand, US evidently have strong
hold on the telecommunications industries.

77
Nandhu n. and dr. ranjith kumar (2020) effectiveness of cash flow ratios to measure the performance divergences of selected steel companies
in india
78
Jooste, L. (2007). An evaluation of the usefulness of cash flow ratios to predict financial distress. Professional Accountant, 7(1), 1-13.
79
Amuzu, M. S. (2010). Cash flow ratio as a measure of performance of listed companies in emerging economies: The Ghana
example. Unpublished PhD dissertation. Retrieved from http://stclements. Edu/grad/gradmaxw. pdf.

76
Ross Kirkham (2012)80 had undertaken the study on “liquidity analysis using cash flow ratios
and traditional ratios: the telecommunications sectors in Australia” the purpose of the study is to
examine the value in analysis of the liquidity of companies using the traditional ratios as compared
to the more recently devised cash flow ratios. The study revealed that differences existed between
the traditional liquidity ratios and cash flow ratios. The conclusion based solely on the traditional
ratios could well have led to an incorrect decision regarding the liquidity of a number of
companies. In certain instances, that may have been that a company was deemed to be liquid when
it faced cash flow problems or that a company was not liquid when in fact it had sufficient cash
flow resources.

Gilbert uwonda, nelsons okello and Nicholas okello (2013) 81 had undertaken study on “cash
flow management utilization by small medium enterprises in northern Uganda” the research
finding revealed that the service sector of SMEs studied fight an uphill battle from the start mostly
due to cash flow management issues, but become stable after five years. The majority of these
service sectors SMEs studied were unincorporated enterprises that operate as sole proprietors,
partnership while other only registered under their professional bodies.

Shailendrasinh J. vaghela (2016)82 had undertaken the study on “performance evaluation through
cash management: Indian automobile industry” to know the cash management, to analyses the
working capital, to analyses the cash flow cycle, to evaluate the cash flow from different activities,
to analyses the relationship between availability and profitability, to analyses the cash conversion
cycle and to make suggestion for improvement of cash management. On the basis of the study it
has been found that the companies having efficient control over its cash flows are performing
better than those not. So it is suggestible to all the companies to pay focus on managing their cash
flow more efficiency in order to obtain a strong position in the industry.

80
Kirkham, R. (2012). Liquidity analysis using cash flow ratios and traditional ratios: The telecommunications sector in Australia. Journal of
New Business Ideas & Trends, 10(1), 1-13.
81
Gilbert uwonda, nelsons okello and Nicholas okello (2013) cash flow management utilization by small medium enterprises in northern Uganda
82
Vaghela, S. J. Performance evaluation through cash management Indian automobile industry.

77
2.13 RESEARCH GAP AND STATEMENT OF PROBLEM

Research gap means the uncovered area of the particular field where further research is
possible. It may have defined as further possibility of research work in particular area Research
gap is identified from the review of literatures of the particular field and related area in which the
researcher worked.

The literature review revealed a research void in the field of cash management research in various
industries. Although there is a large body of knowledge about cash management through cash flow
in various countries and areas such as Canadian companies, small/ medium enterprises in northern
Uganda, and construction firms, there is little research in the Indian context. According to the
research, the Indian automobile industry has been studied in various aspects such as supply chain
management barriers, lean sigma, customer purchasing behaviour, technology transfer, consumer
satisfaction, supplier selection, stock market perspective, liberalization and its effect and
capability, but there has been no research on cash management in the Indian automobile industry.
The study's aim is to look at cash management in different Indian automotive companies using
cash flow statements.

According to the findings of the study, a large number of researchers have focused on cash flow
analysis, with some of them focusing on comparative studies, cash management, cash flow utility,
and cash flow sensitivity. Many researchers have studied cash flow forecasting, with some
focusing on a specific field or section. Judy Payburn, Jeffrey Hales, and Steven Orpurt studied a
specific section of the cash flow statement, namely operational activities, while Michael and Juha
studied articulation in the cash flow statement. Other researchers looked at a variety of cash flow-
related topics. Some researchers focused their research on the automotive industry in particular.
They all have subtopics such as supply chain management, consumer purchasing behaviour,
technology in the automotive industry, customer loyalty, selection criteria, stock market
perspective, transmission mechanism, liberalization and its effect on the automobile industry,
performance assessment, and ability estimation, to name a few. Based on the gaps found, the
researcher decided to conduct this research on “cash management evaluation through cash flow
statements analysis: with special reference to the Indian automotive industry,” which had never
been done before in any of the studies reviewed in the literature.

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3.1 RESEARCH OBJECTIVE

1. To know the cash management performance of the selected sample of indian automobile
industry.
2. To evaluate the cash management techniques of the companies of Indian automobile
industry.
3. To find out difference in cash management techniques of the companies of Indian two/three
wheeler automobile industry and four wheeler automobile industry.
4. To analyze the relationship between cash flow ratios and profitability performance of
selected companies of Indian automobile industry.
5. To analyze the relationship between cash flow ratios and valuation ratios of selected
companies of Indian automobile industry.

3.2 RESEARCH HYPOTHESIS

 Ho: There is no signficant difference in the mean score of cash flow ratios of four wheeler
companies and two/thee wheeler companies
 H1: There is signficant difference in the mean score of cash flow ratios of four wheeler
companies and two/thee wheeler companies
 Ho: There is no signficant difference in the mean score of cash flow ratios of different
two/thee wheeler companies
 H1: There is signficant difference in the mean score of cash flow ratios of different two/thee
wheeler companies
 Ho: There is no signficant difference in the mean score of cash flow ratios of different four
wheeler companies
 H1: There is signficant difference in the mean score of cash flow ratios of different four
wheeler companies
 H0: there is no significant difference between the profitability ratios and the Cash Flow of
selected Indian companies

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 H1: there is a significant difference between the profitability ratio and Cash Flow of selected
Indian companies
 H0: there is no significant difference between the valuation ratios and the Cash Flow of
selected Indian companies
 H1: there is a significant difference between the valuation ratio and Cash Flow of selected
Indian companies

3.3 RESEARCH DESIGN

Research design is a blue print or a complete plan of research, which guides researcher on
various aspects of research. Research design used for this research is descriptive.

3.4 SAMPLING DESIGN

As all companies registered in India under the corporate sector, the universe of the study is
considered. The research population is considered to be all companies registered under the
Bombay stock exchange's automotive section. Based on their working situation from 2009-10
to 2018-19, the businesses of the universe are chosen randomly.

Samples of the study

1. Ashok Leyland
2. Atul auto
3. Bajaj auto
4. Eicher motors
5. Escort
6. Force motors
7. Hero MotoCorp
8. Hindustan motors
9. Maharashtra sco.
10. Kinetic Eng.

80
 11. Mahindra fin.
12. Majestic auto
13. Maruti Suzuki
14. Premier
15. Scooters Ind.
16. SML
17. Sundaram cly.
18. Tata motors
19. TVS motors
20. VST tillers

3.5 PERIOD OF THE STUDY

To undertake the comparison of the cash flow of the selected companies, the cash flow
statements of ten years starting from 2009-10 to 2018-19 were studied.

3.6 TOOLS AND TECHNIQUES FOR DATA ANALYSIS

 Accounting tools

Ratios:

1. Current liability coverage ratio

2.total liability coverage ratio

3.cash flow margin ratio

4. asset efficient ratio

5. cash return on invested capital

6. free cash flow to operating cash flow

7. operating index

81
 8. cash generating power ratio

9. external financing index ratio

10. price to cash flow ratio

11. cash flow interest coverage ratio

12. cash flow from operating activity to fixed assets

13. cash flow from operating activity to total revenue

14. cash flow from operating activity to net income

15. return on equity ratio

16. return on assets ratio

17. EPS

18. PE ratio

19. P/CF ratio

20. PB ratio

Statistical tools

 Correlation
 Normality test
 Mann Whitney u test
 Kruskal Wallis test
 ANOVA
 Multiple Regression

3.7 SOURCES OF DATA

There are primarily two types of data sources which are primary sources and secondary
sources for which the present analysis is carried out on the basis of secondary data obtained

82
 from the annual reports of the selected companies for the time under study the details of the
cash flow statements.

3.8 SIGNIFICANCE OF THE STUDY

The automotive industry is one of India's sunrise industries, which has the nation's very large
investment. The study's importance is as follows:

 Different factors such as cash management, profitability efficiency, cash flow

performance are evaluated. It is therefore possible to provide appropriate information
to its different users for their decision-making.
 It is also important to figure out a significant factor that influences the industry's
internal decisions. Cash management of top management firms is often taken into
account, because a certain sort of idea of the optimal pattern of action is identified that
would be useful for the other units of the industry. This would make research valuable
for the automotive industry itself.
 Obviously, the automotive industry is one of the most active sectors contributing to
India's foreign trade, and so the analyzed data from this research would be of great
benefit in order to increase the degree of liquidity dependent on cash management.
 The thesis will direct the review of the research of the units not conducted for this
study.
 The study has helped to enhance the researcher himself in order to further strengthen
his own research abilities.

3.9 LIMITATIONS AND FUTURE SCOPE OF STUDY

LIMITATIONS

 The analysis will be based on secondary data taken from the annual and website reports
released. Secondary data collected for the research study is collected from annual reports,
websites and written reports and, as such, the quality of such data will be entirely dependent
on them.

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  There are still more instruments and techniques available, aside from the tools and
techniques used here.
 The present research is based on ratio analysis and other statistical methods that also relate
to the study and have their own limitations.
 On the notion of historical expense, financial statements are generally viewed. In terms of
present expense, they don't represent values. Accordingly, a financial review of certain
financial statements or accounting statistics does not disclose the implications of
adjustments in price prices over the period.

FUTURE SCOPE

the future scope of the study will be wide in this area of study

This research involves few businesses in the industry, but it is possible to consider other
units to review the industry's results. Companies' cash management efficiency has been studied
from different fields, but it is possible to research remaining aspects of these units in the future,
such as profitability, social responsibility, human resources management, costing strategies,
market policies, dividend policies and leverage etc. These are excellent areas for further study.

This research is limited to the 10-year period from 2009-10 to 2018-19, i.e. So the rest of
the time could also be analyzed. This analysis is based on secondary data, but on the primary
data base, the same element could also be studied.

In the research, some methods and hypotheses were used for comparative analysis. In order
to draw more concrete results, other instruments and methods may also be used for research.
There is also a wide variety of different aspects in different regions, with differences in the
data element. The thesis would be useful as an objective literature review for future studies.

3.10 CHAPTER SCHEME

Chapter 1: introduction
1.1 meaning and function of cash

84
 1.2 significance and use of cash flow statement
1.3 AS-3 and IND-7
Chapter 2: review of literature
2.1 literature on cash flow analysis
2.2 literature on comparative study
2.3 literature on cash management
2.4 literature on usefulness of cash flow
2.5 literature on cash flow sensitivity
2.6 literature on cash flow forecasting
2.7 literature on study in particular area
2.8 literature on automobile industry
2.9 literature on statistical aspect
2.10 others
Chapter 3: research methodology
3.1 research objective
3.2 research hypothesis
3.3 research design
3.4 sample design
3.5 period of the study
3.6 tools and data analysis
3.7 sources of data
3.8 significance of the study
3.9 limitations and future scope of study
Chapter 4: data analysis and interpretation
Chapter 5: findings, suggestions and conclusions
Chapter 6: references

85
INTRODUCTION

important role cash plays in a business’ life, as importance should be given to its size. There are
many models already developed for deciding the optimum value to be kept by any organization.
But even though, the researcher has hereby tried to compare the cash in proportion to net current
liability, total liability, total assets, invested capital etc. It is to see whether there has been an
increasing trend or decreasing trend in the proportion of cash to total assets, cash to current assets
and cash to total sales in the industry. Here cash has been taken as average of opening cash and
cash equivalents and closing cash and cash equivalents.

4.1. CURRENT LIABILITY COVERAGE RATIO

Current liability coverage ratio calculated as cash flow from operations divided by current
liabilities. If this ratio is less than 1:1, a business is not generating enough cash to pay its immediate
obligations and so may be at significant risk so bankruptcy.

Descriptive analysis:
Average value maintained by the industry is 0.288 of the current liability. Maximum cash
size was 0.47 in the year 2009-10 and the least cash size was -0.04 in the year 2011-12. Average
Cash size of Ashok Leyland as compared to its net current liability was 0.274. The highest
value, in proportion to its net current liability, by Ashok Leyland was maintained in 2017-18
which was 0 . 6 6 and on the lower side it was recorded at -0.04 in the year 2018-19. Average
Cash size of Atul Auto as compared to its net current liability was 0.683. The highest value, in
proportion to its net current liability, by Atul Auto was maintained in 2016-17 which was 1.24 and
on the lower side it was recorded at 0.37 in the year 2017-18. Average Cash size of Bajaj Auto
as compared to its net current liability was 0.84. The highest value, in proportion to its net current
liability, by Bajaj Auto was maintained in 2009-10 which was 1.35 and on the lower side it was
recorded at 0.48 in the year 2014-15. Average Cash size of Eicher Motors as compared to its
net current liability was 0.84. The highest value, in proportion to its net current liability, by Eicher
Motors was maintained in 2009-10 which was 1.35 and on the lower side it was recorded at 0.48
in the year 2014-15. Average Cash size of Escort as compared to its net current liability was
0.12. The highest value, in proportion to its net current liability, by Escort was maintained in 2017-
18 which was 0.29 and on the lower side it was recorded at -0.13 in the year 2018-

86
Table: 4.1.1 CURRENT LIABILITY COVERAGE RATIO

YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.42 0.19 0.23 0.14 0.12 0.35 0.32 0.35 0.66 -0.04 0.274 0.19 14
LEYLAND
ATUL AUTO 0.78 0.91 0.57 0.98 0.70 0.71 0.18 1.24 0.37 0.39 0.683 0.32 6

BAJAJ AUTO 1.35 0.84 0.64 0.52 0.75 0.48 1.23 1.04 1.04 0.51 0.84 0.31 7

EICHER 1.35 0.84 0.64 0.52 0.75 0.48 1.23 1.04 1.04 0.51 0.84 0.31 7
MOTORS
ESCORT 0.12 0.21 0.04 0.04 0.24 0.01 0.17 0.21 0.29 -0.13 0.12 0.13 18

FORCE 0.19 0.18 -0.34 0.18 0.24 0.38 0.37 0.07 0.38 0.48 0.213 0.23 13
MOTORS
HERO 0.71 0.45 1.15 0.45 0.67 0.58 0.97 0.98 0.92 0.24 0.712 0.29 9
MOTOCORP
HINDUSTAN 0.05 -0.40 -0.36 -0.39 -0.11 0.30 0.06 0.05 -0.32 -0.24 -0.136 0.24 11
MOTORS
MAHARASTRA -0.75 -0.77 -5.44 -0.23 -0.14 -0.20 -0.70 -1.32 0.07 0.07 -0.941 1.64 1
SCO.
KINETIC ENG. -0.43 -0.29 -0.25 -0.04 0.06 -0.09 -0.25 0.05 0.10 0.01 -0.113 0.18 16

MAHINDRA 0.69 0.63 0.37 0.51 0.43 0.36 0.56 0.42 0.53 0.34 0.484 0.12 20
&MAH.
MAJESTIC -0.16 0.71 0.35 0.27 -0.81 -0.76 -0.03 0.21 1.07 2.60 0.345 0.98 2
AUTO
MARUTI 1.03 0.86 0.39 0.64 0.60 0.73 0.77 0.78 0.76 0.47 0.703 0.19 15
SUZUKI
PREMIER 0.43 0.29 0.24 -0.20 0.00 0.59 0.02 -0.02 0.11 -0.05 0.141 0.24 10

SCOOTERS -0.52 -0.68 0.25 0.68 -0.11 -0.31 -0.21 -0.12 -0.04 -0.37 -0.143 0.39 5
IND.
SML 0.59 0.17 0.22 -0.07 0.43 0.14 -0.04 0.42 0.43 -0.08 0.221 0.24 12

SUNDARAM 2.32 0.36 0.07 0.16 0.19 0.19 0.28 0.35 -0.07 0.28 0.413 0.68 3
CLY.
TATA 0.44 0.12 0.17 0.11 0.13 -0.13 0.14 0.06 0.17 0.27 0.148 0.14 17
MOTORS
TVS 0.51 0.23 0.33 0.33 0.34 0.04 0.41 0.25 0.35 0.27 0.306 0.12 19

VSTILLERS 0.34 0.86 -0.10 0.73 1.05 0.37 1.22 1.08 0.23 0.41 0.619 0.43 4

TREND 0.47 0.29 -0.04 0.27 0.28 0.21 0.34 0.36 0.4 0.3 0.288 0.14

87
19. Average Cash size of Force Motors as compared to its net current liability was 0.213.
The highest value, in proportion to its net current liability, by Force Motors was maintained
in 2018-19 which was 0.48 and on the lower side it was recorded at -0.34 in the year 2011-
12. Average Cash size of Hero MotoCorp as compared to its net current liability was
0.712. The highest value, in proportion to its net current liability, by Hero MotoCorp was
maintained in 2011-12 which was 1.15 and on the lower side it was recorded at 0.24 in the
year 2018-19. Average Cash size of Hindustan Motors as compared to its net current
liability was -0.136. The highest value, in proportion to its net current liability, by Hindustan
Motors was maintained in 2014-15 which was 0.30 and on the lower side it was recorded
at -0.40 in the year 2010-11. Average Cash size of Maharashtra Scow. as compared to
its net current liability was -0.941. The highest value, in proportion to its net current liability,
by Maharashtra Sco. was maintained in 2017-18 and 2018-19 which was 0.07 and on the
lower side it was recorded at -5.44 in the year 2011-12.

CHART: 4.1.2 CURRENT LIABILITY COVERAGE RATIO

Chart Title
2

1.5

0.5

-0.5

-1

-1.5

MEAN SD

Average Cash size of Kinetic Eng. as compared to its net current liability was -0.113.
The highest value, in proportion to its net current liability, by Kinetic Eng. was maintained
in 2017-18 which was 0.10 and on the lower side it was recorded at -0.43 in the year 2009-
10. Average Cash size of Mahindra & Mahindra as compared to its net current liability

88
was 0.484. The highest value, in proportion to its net current liability, by Mahindra &
Mahindra was maintained in 2009-10 which was 0.69 and on the lower side it was recorded
at 0.34 in the year 2018-19. Average Cash size of Majestic Auto as compared to its net
current liability was 0.345. The highest value, in proportion to its net current liability, by
Majestic Auto was maintained in 2009-10 which was 2.60 and on the lower side it was
recorded at -0.81 in the year 2018-19. Average Cash size of Maruti Suzuki as compared
to its net current liability was 0.703. The highest value, in proportion to its net current
liability, by Maruti Suzuki was maintained in 2009-10 which was 1.03 and on the lower side
it was recorded at 0.39 in the year 2011-12. Average Cash size of Premier as compared
to its net current liability was 0.141. The highest value, in proportion to its net current
liability, by Premier was maintained in 2014-15 which was 0.59 and on the lower side it
was recorded at -0.20 in the year 2012-13. Average Cash size of Scooters Ind. as
compared to its net current liability was -0.143. The highest value, in proportion to its net
current liability, by Scooters Ind. was maintained in 2012-13 which was 0.68 and on the
lower side it was recorded at -0.68 in the year 2010-11. Average Cash size of SML as
compared to its net current liability was 0.221. The highest value, in proportion to its net
current liability, by SML was maintained in 2009-10 which was 0.59 and on the lower side
it was recorded at -0.08 in the year 2018-19. Average Cash size of Sundaram Cly. as
compared to its net current liability was 0.413. The highest value, in proportion to its net
current liability, by Sundaram Cly as maintained in 2009-10 which was 2.32 and on the
lower side it was recorded at -0.07 in the year 2017-18. Average Cash size of TATA
Motors as compared to its net current liability was 0.148. The highest value, in proportion
to its net current liability, by TATA Motors was maintained in 2009-10 which was 0.44 and
on the lower side it was recorded at -0.13 in the year 2014-15. Average Cash size of TVS
as compared to its net current liability was 0.306. The highest value, in proportion to its net
current liability, by TVS was maintained in 2009-10 which was 0.51 and on the lower side
it was recorded at 0.23 in the year 2010-11. Average Cash size of VSTillers as compared
to its net current liability was 0.619. The highest value, in proportion to its net current
liability, by VSTillers was maintained in 2016-17 which was 1.08 and on the lower side it
was recorded at -0.10 in the year 2011-12.

89
4.2 TOTAL LIABILITY COVERAGE RATIO
Total liability coverage ratio, broadly is a matric intended to measure a company’s ability to service
its debt and meet its financial obligations, such as interest payments or dividend. The higher the
coverage ratio, the easier it should be to make interest payment on its debt or pay dividends.
Average value maintained by the industry is 0.22 of the current liability. Maximum cash
size was 0.32 in the year 2016-17 and the least cash size was 0.08 in the year 2011-12. Average
Cash size of Ashok Leyland as compared to its total liability was 0.19. The highest value, in
proportion to its total liability, by Ashok Leyland was maintained in 2017-18 which was 0 . 5 8
and on the lower side it was recorded at -0.04 in the year 2018-19. Average Cash size of Atul
Auto as compared to its total liability was 0.52. The highest value, in proportion to its total liability,
by Atul Auto was maintained in 2016-17 which was 1.12 and on the lower side it was recorded at
0.22 in the year 2009-10. Average Cash size of Bajaj Auto as compared to its total liability was
0.64. The highest value, in proportion to its total liability, by Bajaj Auto was maintained in 2015-
16 which was 1.08 and on the lower side it was recorded at 0.44 in the year 2014-15 and 2018-
19. Average Cash size of Eicher Motors as compared to its total liability was 0.79. The highest
value, in proportion to its total liability, by Eicher Motors was maintained in 2014-15 which was
1.57 and on the lower side it was recorded at 0.25 in the year 2009-10. Average Cash size of
Escort as compared to its total liability was 0.10. The highest value, in proportion to its total
liability, by Escort was maintained in 2017-18 which was 0.27 and on the lower side it was recorded
at -0.12 in the year 2018-19. Average Cash size of Force Motors as compared to its total liability
was 0.18. The highest value, in proportion to its total liability, by Force Motors was maintained in
2017-18 which was 0.36 and on the lower side it was recorded at -0.27 in the year 2011-12. Average
Cash size of Hero MotoCorp as compared to its total liability was 0.57. The highest value, in
proportion to its total liability, by Hero MotoCorp was maintained in 2015-16 which was 0.89 and
on the lower side it was recorded at 0.20 in the year 2018-19. Average Cash size of Hindustan
Motors as compared to its total liability was -0.12. The highest value, in proportion to its total
liability, by Hindustan Motors was maintained in 2014-15 which was 0.25 and on the lower side it
was recorded at -0.37 in the year 2012-13. Average Cash size of Maharashtra Scow. as
compared to its total liability was -0.34. The highest value, in proportion to its total liability, by
Maharashtra Sco. was maintained in 2017-18 which was 0.04 and on the lower side it was recorded
at -0.61 in the year 2016-17.

90
TABLE: 4.2.1 TOTAL LIABILITY COVERAGE RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.21 0.10 0.14 0.08 0.07 0.22 0.21 0.28 0.58 -0.04 0.19 0.17 12
LEYLAND
ATUL AUTO 0.22 0.49 0.46 0.84 0.61 0.64 0.16 1.12 0.33 0.36 0.52 0.29 5

BAJAJ AUTO 0.47 0.45 0.59 0.47 0.69 0.44 1.08 0.88 0.90 0.44 0.64 0.24 8

EICHER 0.25 0.35 0.48 0.56 0.69 1.57 1.15 1.10 1.04 0.69 0.79 0.42 1
MOTORS
ESCORT 0.07 0.14 0.03 0.03 0.20 0.01 0.16 0.20 0.27 -0.12 0.10 0.12 15

FORCE 0.12 0.10 -0.27 0.15 0.22 0.35 0.32 0.06 0.36 0.35 0.18 0.19 10
MOTORS
HERO 0.53 0.29 0.42 0.41 0.66 0.57 0.89 0.88 0.80 0.20 0.57 0.24 6
MOTOCORP
HINDUSTAN 0.04 -0.27 -0.31 -0.37 -0.11 0.25 0.06 0.04 -0.31 -0.23 -0.12 0.21 9
MOTORS
MAHARASTRA -0.50 -0.44 -1.22 -0.13 -0.09 -0.15 -0.31 -0.61 0.04 0.00 -0.34 0.38 3
SCO.
KINETIC ENG. -0.13 -0.09 -0.08 -0.03 0.05 -0.06 -0.13 0.03 0.06 0.01 -0.04 0.07 18

MAHINDRA 0.28 0.31 0.23 0.32 0.26 0.24 0.42 0.29 0.41 0.27 0.30 0.07 20
&MAH.
MAJESTIC -0.05 0.12 0.12 0.10 -0.22 -0.13 -0.01 0.06 0.11 0.66 0.08 0.24 7
AUTO
MARUTI 0.67 0.67 0.36 0.54 0.51 0.65 0.70 0.69 0.67 0.39 0.59 0.13 13
SUZUKI
PREMIER 0.12 0.07 0.16 -0.08 0.00 0.35 0.01 -0.01 0.07 -0.05 0.06 0.12 14

SCOOTERS -0.45 -0.55 0.07 0.95 -0.07 -0.20 -0.15 -0.09 -0.02 -0.22 -0.07 0.41 2
IND.
SML 0.36 0.11 0.20 -0.06 0.43 0.18 -0.03 0.31 0.32 -0.06 0.18 0.18 11

SUNDARAM 0.27 0.08 0.05 0.12 0.15 0.14 0.21 0.26 -0.05 0.17 0.14 0.10 16
CLY.
TATA 0.18 0.04 0.10 0.07 0.08 -0.07 0.08 0.04 0.11 0.16 0.08 0.07 19
MOTORS
TVS 0.19 0.11 0.23 0.22 0.24 0.03 0.31 0.21 0.30 0.22 0.21 0.08 17

VSTILLERS 0.23 0.61 -0.08 0.55 0.83 0.24 0.75 0.69 0.18 0.27 0.43 0.30 4

TREND 0.15 0.13 0.08 0.24 0.26 0.26 0.29 0.32 0.31 0.17 0.22 0.08

91
Average Cash size of Kinetic Eng. as compared to its total liability was -0.04. The highest value,
in proportion to its total liability, by Kinetic Eng. was maintained in 2017-18 which was 0.06 and
on the lower side it was recorded at -0.13 in the year 2009-10 and 2015-16. Average Cash size of
Mahindra & Mahindra as compared to its total liability was 0.30. The highest value, in
proportion to its total liability, by Mahindra & Mahindra was maintained in 2017-18 which was
0.41 and on the lower side it was recorded at 0.24 in the year 2014-15. Average Cash size of
Majestic Auto as compared to its total liability was 0.08. The highest value, in proportion to its
total liability, by Majestic Auto was maintained in 2018-19 which was 0.66 and on the lower side
it was recorded at -0.22 in the year 2013-14. Average Cash size of Maruti Suzuki as compared
to its total liability was 0.59. The highest value, in proportion to its total liability, by Maruti Suzuki
was maintained in 2015-16 which was 0.70 and on the lower side it was recorded at 0.36 in the
year 2011-12. Average Cash size of Premier as compared to its total liability was 0.06. The
highest value, in proportion to its total liability, by Premier was maintained in 2014-15 which was
0.35 and on the lower side it was recorded at -0.05 in the year 2018-19.

4.2.2 TOTAL LIABILITY COVERAGE RATIO

Chart Title
1

0.8

0.6

0.4

0.2

-0.2

-0.4

MEAN SD

Average Cash size of Scooters Ind. as compared to its total liability was -0.07. The highest
value, in proportion to its total liability, by Scooters Ind. was maintained in 2012-13 which was

92
0.95 and on the lower side it was recorded at -0.55 in the year 2010-11. Average Cash size of
SML as compared to its total liability was 0.18. The highest value, in proportion to its total
liability, by SML was maintained in 2013-14 which was 0.43 and on the lower side it was recorded
at -0.06 in the year 2012-13 and 2018-19. Average Cash size of Sundaram Cly. as compared to
its total liability was 0.14. The highest value, in proportion to its total liability, by Sundaram Cly
as maintained in 2009-10 which was 0.27 and on the lower side it was recorded at -0.05 in the
year 2017-18. Average Cash size of TATA Motors as compared to its total liability was 0.08.
The highest value, in proportion to its total liability, by TATA Motors was maintained in 2009-10
which was 0.18 and on the lower side it was recorded at -0.07 in the year 2014-15. Average Cash
size of TVS as compared to its total liability was 0.21. The highest value, in proportion to its total
liability, by TVS was maintained in 2015-16 which was 0.31 and on the lower side it was recorded
at 0.03 in the year 2014-15. Average Cash size of VSTillers as compared to its total liability
was 0.43. The highest value, in proportion to its total liability, by VSTillers was maintained in
2013-14 which was 0.83 and on the lower side it was recorded at -0.08 in the year 2011-12.

4.3 CASH FLOW MARGIN RATIO

Cash flow margin ratio calculated as cash flow from operating activity divided by net sales. This
is a more reliable matric than net profit, since it gives a clear picture of the amount of cash
generated per rupee of sales.
Average value maintained by the industry is -0.05 of the current liability. Maximum cash
size was 0.54 in the year 2015-16 and the least cash size was -1.31 in the year 2018-19. Average
Cash size of Ashok Leyland as compared to its net sales was 0.08. The highest value, in
proportion to its net sales, by Ashok Leyland was maintained in 2014-15 which was 0 . 1 3 and
on the lower side it was recorded at -0.01 in the year 2018-19. Average Cash size of Atul Auto
as compared to its net sales was 0.07. The highest value, in proportion to its net sales, by Atul Auto
was maintained in 2016-17 which was 0.15 and on the lower side it was recorded at 0.02 in the
year 2015-16. Average Cash size of Bajaj Auto as compared to its net sales was 0.15. The
highest value, in proportion to its net sales, by Bajaj Auto was maintained in 2009-10 which was

93
TABLE: 4.3.1 CASH FLOW MARGIN RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.00 0.05 0.09 0.06 0.06 0.13 0.09 0.10 0.20 -0.01 0.08 0.06 12
LEYLAND
ATUL AUTO 0.08 0.08 0.06 0.11 0.07 0.07 0.02 0.15 0.05 0.05 0.07 0.04 17

BAJAJ AUTO 0.24 0.13 0.16 0.11 0.18 0.10 0.16 0.15 0.17 0.08 0.15 0.05 14

EICHER 0.10 0.13 0.18 0.22 0.23 0.32 0.21 0.22 0.27 0.17 0.21 0.06 9
MOTORS
ESCORT 0.03 0.06 0.01 0.01 0.05 0.00 0.07 0.07 0.09 -0.04 0.04 0.04 15

FORCE 0.06 0.05 -0.07 0.04 0.06 0.10 0.09 0.02 0.07 0.09 0.05 0.05 13
MOTORS
HERO 0.17 0.12 0.10 0.08 0.12 0.08 0.14 0.13 0.12 0.03 0.11 0.04 16
MOTOCORP
HINDUSTAN 0.02 -0.13 -0.20 -0.15 -0.13 2.20 10.49 6.41 0.00 -25.89 -0.74 9.55 1
MOTORS
MAHARASTRA -2.75 -1.98 -6.79 -1.13 -1.36 -1.45 -0.89 -1.41 0.05 0.05 -1.77 1.96 2
SCO.
KINETIC ENG. -0.41 -0.15 -0.18 -0.10 0.23 -0.23 -0.25 0.04 0.07 0.01 -0.10 0.19 5

MAHINDRA 0.13 0.13 0.09 0.10 0.09 0.08 0.13 0.08 0.14 0.09 0.11 0.02 19
&MAH.
MAJESTIC -0.03 0.12 0.10 0.10 -0.26 -0.14 -0.01 0.07 1.69 0.60 0.22 0.56 4
AUTO
MARUTI 0.10 0.08 0.07 0.10 0.11 0.13 0.13 0.13 0.14 0.08 0.11 0.02 18
SUZUKI
PREMIER 0.27 0.13 0.30 -0.20 -0.01 1.01 0.08 -0.22 2.75 -1.68 0.24 1.11 3

SCOOTERS -0.18 -0.19 0.06 0.44 -0.03 -0.12 -0.08 -0.06 -0.02 -0.14 -0.03 0.18 6
IND.
SML 0.15 0.04 0.07 -0.03 0.18 0.06 -0.01 0.09 0.08 -0.03 0.06 0.07 7

SUNDARAM 0.21 0.05 0.03 0.07 0.08 0.06 0.08 0.11 -0.04 0.10 0.08 0.06 10
CLY.
TATA 0.18 0.03 0.07 0.05 0.07 -0.07 0.06 0.03 0.07 0.09 0.06 0.06 11
MOTORS
TVS 0.08 0.03 0.06 0.06 0.07 0.01 0.08 0.05 0.08 0.06 0.06 0.02 20

VSTILLERS 0.04 0.12 -0.02 0.10 0.21 0.05 0.13 0.13 0.04 0.07 0.09 0.06 8

TREND -0.08 -0.05 -0.29 0.0 0.0 0.12 0.54 0.31 0.3 -1.31 -0.05 0.50

94
0.24 and on the lower side it was recorded at 0.08 in the year 2018-19. Average Cash size of
Eicher Motors as compared to its net sales was 0.21. The highest value, in proportion to its net
sales, by Eicher Motors was maintained in 2014-15 which was 0.32 and on the lower side it was
recorded at 0.10 in the year 2009-10. Average Cash size of Escort as compared to its net sales
was 0.04. The highest value, in proportion to its net sales, by Escort was maintained in 2017-18
which was 0.09 and on the lower side it was recorded at -0.04 in the year 2018-19. Average Cash
size of Force Motors as compared to its net sales was 0.05. The highest value, in proportion to
its net sales, by Force Motors was maintained in 2014-15 which was 0.10 and on the lower side it
was recorded at -0.07 in the year 2011-12. Average Cash size of Hero MotoCorp as compared
to its net sales was 0.11. The highest value, in proportion to its net sales, by Hero MotoCorp was
maintained in 2009-10 which was 0.17 and on the lower side it was recorded at 0.08 in the year
2012-13 and 2014-15. Average Cash size of Hindustan Motors as compared to its net sales
was -0.74. The highest value, in proportion to its net sales, by Hindustan Motors was maintained
in 2015-16 which was 10.49 and on the lower side it was recorded at -25.89 in the year 2018-19.
Average Cash size of Maharashtra Scow. as compared to its net sales was -1.77. The highest
value, in proportion to its net sales, by Maharashtra Sco. was maintained in 2017-18 and 2018-19
which was 0.05 and on the lower side it was recorded at -6.79 in the year 2011-12.

4.3.1 CASH FLOW MARGIN RATIO

Chart Title
12

10

-2

-4

MEAN SD

95
Average Cash size of Kinetic Eng. as compared to its net sales was -0.10. The highest value, in
proportion to its net sales, by Kinetic Eng. was maintained in 2013-14 which was 0.23 and on the
lower side it was recorded at -0.41 in the year 2009-10 and 2015-16. Average Cash size of
Mahindra & Mahindra as compared to its net sales was 0.11. The highest value, in proportion
to its net sales, by Mahindra & Mahindra was maintained in 2017-18 which was 0.14 and on the
lower side it was recorded at 0.08 in the year 2014-15 and 2016-17. Average Cash size of
Majestic Auto as compared to its net sales was 0.22. The highest value, in proportion to its net
sales, by Majestic Auto was maintained in 2017-18 which was 1.69 and on the lower side it was
recorded at -0.26 in the year 2013-14. Average Cash size of Maruti Suzuki as compared to its
net sales was 0.11. The highest value, in proportion to its net sales, by Maruti Suzuki was
maintained in 2017-18 which was 0.14 and on the lower side it was recorded at 0.07 in the year
2011-12. Average Cash size of Premier as compared to its net sales was 0.24. The highest value,
in proportion to its net sales, by Premier was maintained in 2017-18 which was 2.75 and on the
lower side it was recorded at -1.68 in the year 2018-19. Average Cash size of Scooters Ind. as
compared to its net sales was -0.03. The highest value, in proportion to its net sales, by Scooters
Ind. was maintained in 2012-13 which was 0.44 and on the lower side it was recorded at -0.19 in
the year 2010-11. Average Cash size of SML as compared to its net sales was 0.06. The highest
value, in proportion to its net sales, by SML was maintained in 2013-14 which was 0.18 and on
the lower side it was recorded at -0.03 in the year 2012-13 and 2012-13 and 2018-19. Average
Cash size of Sundaram Cly. as compared to its net sales was 0.08. The highest value, in
proportion to its net sales, by Sundaram Cly as maintained in 2009-10 which was 0.21 and on the
lower side it was recorded at -0.04 in the year 2017-18. Average Cash size of TATA Motors as
compared to its net sales was 0.06. The highest value, in proportion to its net sales, by TATA
Motors was maintained in 2009-10 which was 0.18 and on the lower side it was recorded at -0.07
in the year 2014-15. Average Cash size of TVS as compared to its net sales was 0.06. The highest
value, in proportion to its net sales, by TVS was maintained in 2009-10, 2015-16 and 2017-18
which was 0.08 and on the lower side it was recorded at 0.03 in the year 2014-15. Average Cash
size of VSTillers as compared to its net sales was 0.09. The highest value, in proportion to its
net sales, by VSTillers was maintained in 2013-14 which was 0.21 and on the lower side it was
recorded at -0.02 in the year 2011-12.

96
4.4 ASSET EFFICIENT RATIO
Cash flow margin ratio calculated as cash flow from operating activity divided by total assets. It
measures company’s ability to use its assets and manage its liabilities effectively. This ratio
measures how efficiently a company uses its assets to generate revenues and its ability to manage
those assets.
Average value maintained by the industry is 0.09 of the total assets. Maximum cash size
was 0.12 in the year 2016-17 and the least cash size was 0.03 in the year 2018-19. Average Cash
size of Ashok Leyland as compared to its total assets was 0.11. The highest value, in proportion
to its total assets, by Ashok Leyland was maintained in 2017-18 which was 0 . 3 3 and on the
lower side it was recorded at -0.02 in the year 2018-19. Average Cash size of Atul Auto as
compared to its total assets was 0.18. The highest value, in proportion to its total assets, by Atul
Auto was maintained in 2012-13 which was 0.33 and on the lower side it was recorded at 0.05 in
the year 2015-16. Average Cash size of Bajaj Auto as compared to its total assets was 0.20. The
highest value, in proportion to its total assets, by Bajaj Auto was maintained in 2009-10 which
was 0.31 and on the lower side it was recorded at 0.09 in the year 2018-19. Average Cash size of
Eicher Motors as compared to its total assets was 0.27. The highest value, in proportion to its
total assets, by Eicher Motors was maintained in 2014-15 which was 0.58 and on the lower side it
was recorded at 0.08 in the year 2009-10. Average Cash size of Escort as compared to its total
assets was 0.04. The highest value, in proportion to its total assets, by Escort was maintained in
2017-18 which was 0.11 and on the lower side it was recorded at -0.05 in the year 2018-19.
Average Cash size of Force Motors as compared to its total assets was 0.06. The highest value,
in proportion to its total assets, by Force Motors was maintained in 2014-15, 2015-16 and 2018-
19 which was 0.11 and on the lower side it was recorded at -0.08 in the year 2011-12. Average
Cash size of Hero MotoCorp as compared to its total assets was 0.24. The highest value, in
proportion to its total assets, by Hero MotoCorp was maintained in 2009-10 and 2015-16 which
was 0.32 and on the lower side it was recorded at 0.06 in the year 2018-19. Average Cash size of
Hindustan Motors as compared to its total assets was -0.13. The highest value, in proportion to
its total assets, by Hindustan Motors was maintained in 2014-15 which was 0.47 and on the lower
side it was recorded at -0.66 in the year 2017-18. Average Cash size of Maharashtra Scow. as
compared to its total assets was -0.04.

97
TABLE: 4.4.1 ASSET EFFICIENT RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.12 0.06 0.09 0.06 0.04 0.13 0.13 0.16 0.33 -0.02 0.11 0.09 5
LEYLAND
ATUL AUTO 0.12 0.22 0.19 0.33 0.21 0.20 0.05 0.29 0.09 0.10 0.18 0.09 7

BAJAJ AUTO 0.31 0.22 0.27 0.17 0.24 0.14 0.23 0.16 0.18 0.09 0.20 0.07 11

EICHER 0.08 0.11 0.19 0.25 0.31 0.58 0.41 0.32 0.32 0.17 0.27 0.15 3
MOTORS
ESCORT 0.03 0.06 0.02 0.02 0.09 0.00 0.07 0.09 0.11 -0.05 0.04 0.05 17

FORCE 0.07 0.07 -0.08 0.05 0.07 0.11 0.11 0.02 0.10 0.11 0.06 0.06 12
MOTORS
HERO 0.32 0.21 0.24 0.20 0.29 0.21 0.32 0.27 0.24 0.06 0.24 0.08 8
MOTOCORP
HINDUSTAN 0.03 -0.21 -0.28 -0.41 -0.13 0.47 0.17 0.17 -0.66 -0.46 -0.13 0.34 1
MOTORS
MAHARASTRA -0.05 -0.05 -0.19 -0.03 -0.02 -0.03 -0.02 -0.03 0.00 0.00 -0.04 0.05 13
SCO.
KINETIC ENG. -0.08 -0.05 -0.06 -0.02 0.05 -0.05 -0.09 0.02 0.05 0.01 -0.02 0.05 15

MAHINDRA 0.14 0.15 0.12 0.15 0.12 0.10 0.15 0.10 0.15 0.09 0.13 0.02 20
&MAH.
MAJESTIC -0.03 0.08 0.08 0.07 -0.10 -0.06 0.00 0.03 0.03 0.11 0.02 0.07 9
AUTO
MARUTI 0.19 0.17 0.11 0.16 0.16 0.19 0.20 0.20 0.20 0.10 0.17 0.04 19
SUZUKI
PREMIER 0.08 0.03 0.07 -0.04 0.00 0.18 0.01 -0.01 0.07 -0.04 0.04 0.07 10

SCOOTERS -0.28 -0.34 0.13 0.88 -0.03 -0.10 -0.07 -0.04 -0.01 -0.08 0.01 0.33 2
IND.
SML 0.22 0.06 0.12 -0.04 0.29 0.10 -0.02 0.15 0.15 -0.03 0.10 0.11 4

SUNDARAM 0.17 0.05 0.04 0.08 0.10 0.09 0.11 0.13 -0.03 0.10 0.08 0.05 14
CLY.
TATA 0.13 0.03 0.07 0.04 0.05 -0.05 0.05 0.02 0.07 0.10 0.05 0.05 18
MOTORS
TVS 0.13 0.07 0.14 0.13 0.15 0.02 0.19 0.12 0.18 0.13 0.13 0.05 16

VSTILLERS 0.08 0.21 -0.03 0.15 0.28 0.06 0.16 0.14 0.04 0.06 0.12 0.09 6

TREND 0.09 0.06 0.06 0.11 0.11 0.11 0.11 0.12 0.08 0.03 0.09 0.03

98
The highest value, in proportion to its total assets, by Maharashtra Sco. was maintained in 2017-
18 and 2018-19 which was 0.00 and on the lower side it was recorded at -0.19 in the year 2011-
12. Average Cash size of Kinetic Eng. as compared to its total assets was -0.02. The highest
value, in proportion to its total assets, by Kinetic Eng. was maintained in 2013-14 and 2017-18
which was 0.05 and on the lower side it was recorded at -0.09 in the year 2015-16. Average Cash
size of Mahindra & Mahindra as compared to its total assets was 0.13. The highest value, in
proportion to its total assets, by Mahindra & Mahindra was maintained in 2010-11, 2012-13, 2015-
16 and 2017-18 which was 0.15 and on the lower side it was recorded at 0.09 in the year 2018-
19. Average Cash size of Majestic Auto as compared to its total assets was 0.02. The highest
value, in proportion to its total assets, by Majestic Auto was maintained in 2018-19 which was
0.11 and on the lower side it was recorded at -0.10 in the year 2013-14. Average Cash size of
Maruti Suzuki as compared to its total assets was 0.17. The highest value, in proportion to its
total assets, by Maruti Suzuki was maintained in 2015-16 to 17-18 which was 0.20 and on the
lower side it was recorded at 0.10 in the year 2018-19.

4.4.2 ASSET EFFICIENT RATIO

Chart Title
0.4

0.3

0.2

0.1

-0.1

-0.2

MEAN SD

Average Cash size of Premier as compared to its total assets was 0.04. The highest value, in
proportion to its total assets, by Premier was maintained in 2014-15 which was 0.18 and on the

99
lower side it was recorded at -0.04 in the year 2012-13 and 2018-19. Average Cash size of
Scooters Ind. as compared to its total assets was 0.01. The highest value, in proportion to its
total assets, by Scooters Ind. was maintained in 2012-13 which was 0.88 and on the lower side it
was recorded at -0.34 in the year 2010-11. Average Cash size of SML as compared to its total
assets was 0.10. The highest value, in proportion to its total assets, by SML was maintained in
2013-14 which was 0.29 and on the lower side it was recorded at -0.04 in the year 2012-13.
Average Cash size of Sundaram Cly. as compared to its total assets was 0.08. The highest value,
in proportion to its total assets, by Sundaram Cly as maintained in 2009-10 which was 0.17 and
on the lower side it was recorded at -0.03 in the year 2017-18. Average Cash size of TATA
Motors as compared to its total assets was 0.05. The highest value, in proportion to its total assets,
by TATA Motors was maintained in 2009-10 which was 0.13 and on the lower side it was recorded
at -0.05 in the year 2014-15. Average Cash size of TVS as compared to its total assets was 0.13.
The highest value, in proportion to its total assets, by TVS was maintained in 2015-16 which was
0.19 and on the lower side it was recorded at 0.02 in the year 2014-15. Average Cash size of
VSTillers as compared to its total assets was 0.12. The highest value, in proportion to its total
assets, by VSTillers was maintained in 2013-14 which was 0.28 and on the lower side it was
recorded at -0.03 in the year 2011-12.

4.5 CASH RETURN ON INVESTED CAPITAL

Cash return on invested capital calculated as free cash flow divided by average invested capital.
This ratio measures how much cash a company generate based on each rupee it invests into its
operations.
Average value maintained by the industry is 1.06 of the average invested capital.
Maximum cash size was 2.66 in the year 2017-18 and the least cash size was -3.97 in the year
2011-12. Average Cash size of Ashok Leyland as compared to its average invested capital
was 0.74. The highest value, in proportion to its average invested capital, by Ashok Leyland was
maintained in 2018-19 which was 2 . 8 2 and on the lower side it was recorded at -0.12 in the
year 2010-11 and 2012-13. Average Cash size of Atul Auto as compared to its average invested
capital was 1.58. The highest value, in proportion to its average invested capital, by Atul Auto was

100
TABLE: 4.5.1 CASH RETURN ON INVESTED CAPITAL
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.13 -0.12 0.02 -0.12 0.11 0.65 0.91 0.42 2.58 2.82 0.74 1.09 10
LEYLAND
ATUL AUTO 0.26 1.06 1.16 2.78 1.80 -0.05 0.08 5.18 2.91 0.62 1.58 1.64 9

BAJAJ AUTO 0.39 1.49 6.50 2.38 4.05 4.32 8.03 -1.21 8.10 7.76 4.18 3.37 5

EICHER -0.16 0.03 0.01 0.08 0.08 0.56 0.13 0.00 0.15 0.42 0.13 0.21 19
MOTORS
ESCORT 0.82 4.29 -2.04 -1.10 2.41 -0.02 0.36 147.90 0.26 -0.27 15.26 46.64 1

FORCE -5.02 -7.14 -87.37 28.23 0.79 -88.30 3.26 -9.32 18.74 11.54 -13.46 40.93 2
MOTORS
HERO 8.38 -1.14 0.36 -0.53 6.36 1.74 3.08 -1.40 1.17 -0.78 1.72 3.32 6
MOTOCORP
HINDUSTAN 0.22 -0.12 0.00 0.25 0.51 0.28 0.08 0.06 0.44 -0.11 0.16 0.22 17
MOTORS
MAHARASTRA 0.11 0.52 1.37 2.24 0.79 3.81 6.42 2.02 3.57 3.96 2.48 1.96 8
SCO.
KINETIC ENG. 0.26 -0.08 -0.04 -0.13 0.21 0.15 0.54 0.04 0.03 0.01 0.10 0.20 20

MAHINDRA 0.31 -0.28 0.24 0.35 0.33 0.27 0.90 0.25 0.55 0.77 0.37 0.32 13
&MAH.
MAJESTIC 0.05 -0.54 0.20 -0.10 0.48 0.09 -0.35 0.14 0.67 0.71 0.14 0.41 12
AUTO
MARUTI -1.96 6.88 -0.44 0.53 0.01 5.77 5.50 1.74 13.38 10.16 4.16 5.03 3
SUZUKI
PREMIER -0.17 -0.16 -0.04 0.00 0.07 0.73 0.02 -0.02 0.34 0.04 0.08 0.27 15

SCOOTERS -0.21 -0.21 0.15 1.28 -0.33 -0.07 -0.06 -0.05 0.06 -0.09 0.05 0.45 11
IND.
SML 1.03 0.24 0.41 -0.30 12.69 -0.94 -0.36 0.57 0.58 -0.65 1.33 4.04 4

SUNDARAM 0.21 -0.09 0.07 0.14 0.27 0.13 0.44 0.38 -0.41 0.11 0.13 0.24 16
CLY.
TATA -0.32 -0.06 0.33 0.22 0.33 -0.09 -0.04 -0.07 0.20 0.14 0.06 0.21 18
MOTORS
TVS 0.05 0.28 0.08 0.54 0.50 -0.42 0.41 -0.02 0.15 0.07 0.16 0.29 14

VSTILLERS -0.09 0.80 -0.28 4.51 0.05 1.54 4.91 1.39 -0.30 6.27 1.88 2.44 7

TREND 0.21 0.28 -3.97 2.06 1.58 -3.49 1.71 7.4 2.66 2.18 1.06 3.22

101
maintained in 2016-17 which was 5.18 and on the lower side it was recorded at -0.05 in the year
2014-15. Average Cash size of Bajaj Auto as compared to its average invested capital was 4.18.
The highest value, in proportion to its average invested capital, by Bajaj Auto was maintained in
2017-18 which was 8.10 and on the lower side it was recorded at -1.21 in the year 2016-17.
Average Cash size of Eicher Motors as compared to its average invested capital was 0.13. The
highest value, in proportion to its average invested capital, by Eicher Motors was maintained in
2014-15 which was 0.56 and on the lower side it was recorded at -0.16 in the year 2009-10.
Average Cash size of Escort as compared to its average invested capital was 15.26. The highest
value, in proportion to its average invested capital, by Escort was maintained in 2016-17 which
was 147.90 and on the lower side it was recorded at -2.04 in the year 2011-12. Average Cash size
of Force Motors as compared to its average invested capital was -13.46. The highest value, in
proportion to its average invested capital, by Force Motors was maintained in 2012-13 which was
28.23 and on the lower side it was recorded at -88.30 in the year 2014-15. Average Cash size of
Hero MotoCorp as compared to its average invested capital was 1.72. The highest value, in
proportion to its average invested capital, by Hero MotoCorp was maintained in 2009-10 which
was 8.38 and on the lower side it was recorded at -1.40 in the year 2016-17. Average Cash size
of Hindustan Motors as compared to its average invested capital was 0.16.

4.5.2 CASH RETURN ON INVESTED CAPITAL

Chart Title
50

40

30

20

10

-10

-20

MEAN SD

102
The highest value, in proportion to its average invested capital, by Hindustan Motors was
maintained in 2013-14 which was 0.51 and on the lower side it was recorded at -0.12 in the year
2011-11. Average Cash size of Maharashtra Scow. as compared to its average invested capital
was 2.48. The highest value, in proportion to its average invested capital, by Maharashtra Sco. was
maintained in 2018-19 which was 3.96 and on the lower side it was recorded at 0.11 in the year
2009-10. Average Cash size of Kinetic Eng. as compared to its average invested capital was
0.10. The highest value, in proportion to its average invested capital, by Kinetic Eng. was
maintained in 2015-16 which was 0.54 and on the lower side it was recorded at -0.13 in the year
2012-13. Average Cash size of Mahindra & Mahindra as compared to its average invested
capital was 0.37. The highest value, in proportion to its average invested capital, by Mahindra &
Mahindra was maintained in 2015-16 which was 0.90 and on the lower side it was recorded at -
0.28 in the year 2010-11. Average Cash size of Majestic Auto as compared to its average
invested capital was 0.14. The highest value, in proportion to its average invested capital, by
Majestic Auto was maintained in 2018-19 which was 0.71 and on the lower side it was recorded
at -0.54 in the year 2010-11. Average Cash size of Maruti Suzuki as compared to its average
invested capital was 4.16. The highest value, in proportion to its average invested capital, by Maruti
Suzuki was maintained in 2017-18 which was 13.38 and on the lower side it was recorded at -1.96
in the year 2009-10. Average Cash size of Premier as compared to its average invested capital
was 0.08. The highest value, in proportion to its average invested capital, by Premier was
maintained in 2014-15 which was 0.73 and on the lower side it was recorded at -0.17 in the year
2009-10. Average Cash size of Scooters Ind. as compared to its average invested capital was
0.05. The highest value, in proportion to its average invested capital, by Scooters Ind. was
maintained in 2012-13 which was 1.28 and on the lower side it was recorded at -0.33 in the year
2013-14. Average Cash size of SML as compared to its average invested capital was 1.33. The
highest value, in proportion to its average invested capital, by SML was maintained in 2013-14
which was 12.69 and on the lower side it was recorded at -0.94 in the year 2014-15. Average Cash
size of Sundaram Cly. as compared to its average invested capital was 0.13. The highest value,
in proportion to its average invested capital, by Sundaram Cly as maintained in 2015-16 which
was 0.44 and on the lower side it was recorded at -0.41 in the year 2017-18. Average Cash size
of TATA Motors as compared to its average invested capital was 0.06. The highest value, in
proportion to its average invested capital, by TATA Motors was maintained in 2011-12 and 2013-

103
14 which was 0.33 and on the lower side it was recorded at -0.32 in the year 2009-10. Average
Cash size of TVS as compared to its average invested capital was 0.16. The highest value, in
proportion to its average invested capital, by TVS was maintained in 2012-13 which was 0.54 and
on the lower side it was recorded at -0.42 in the year 2014-15. Average Cash size of VSTillers
as compared to its average invested capital was 1.88. The highest value, in proportion to its average
invested capital, by VSTillers was maintained in 2018-19 which was 6.27 and on the lower side it
was recorded at -0.30 in the year 2017-18.

4.6 FREE CASH FLOW TO OPERATING CASH FLOW

Free cash flow to operating cash flow calculated as free cash flow divided by operating cash
flow. This ratio tells the investors about how much free cash flow is being generated for every
rupee of operating cash flow. A higher ratio means company is not investing too much in capital
expenditure and therefore maybe a mature company that is not seeking any more growth but
rather seeking to sustain its operations.
Average value maintained by the industry is 0.95 of the operating cash flow. Maximum
cash size was 3.92 in the year 2018-19 and the least cash size was -0.25 in the year 2014-15.
Average Cash size of Ashok Leyland as compared to its operating cash flow was -0.24. The
highest value, in proportion to its operating cash flow, by Ashok Leyland was maintained in 2015-
16 which was 1 . 2 3 and on the lower side it was recorded at -5.37 in the year 2018-19. Average
Cash size of Atul Auto as compared to its operating cash flow was 0.60. The highest value, in
proportion to its operating cash flow, by Atul Auto was maintained in 2017-18 which was 1.22
and on the lower side it was recorded at -0.01 in the year 2014-15. Average Cash size of Bajaj
Auto as compared to its operating cash flow was 0.55. The highest value, in proportion to its
operating cash flow, by Bajaj Auto was maintained in 2015-16 which was 0.99 and on the lower
side it was recorded at -0.10 in the year 2016-17. Average Cash size of Eicher Motors as
compared to its operating cash flow was 0.02. The highest value, in proportion to its operating
cash flow, by Eicher Motors was maintained in 2018-19 which was 0.58 and on the lower side it
was recorded at -2.16 in the year 2009-10. Average Cash size of Escort as compared to its
operating cash flow was -0.13. The highest value, in proportion to its operating cash flow, by
Escort was maintained in 2018-19 which was 1.06 and on the lower side it was recorded at -1.51

104
in the year 2014-15. Average Cash size of Force Motors as compared to its operating cash flow
was -0.98. The highest value, in proportion to its operating cash flow, by Force Motors was
maintained in 2017-18 which was 0.69 and on the lower side it was recorded at -4.85 in the year
2011-12. Average Cash size of Hero MotoCorp as compared to its operating cash flow was
0.86. The highest value, in proportion to its operating cash flow, by Hero MotoCorp was
maintained in 2009-10 which was 1.22 and on the lower side it was recorded at 0.42 in the year
2010-11 and 2015-16. Average Cash size of Hindustan Motors as compared to its operating
cash flow was 0.53. The highest value, in proportion to its operating cash flow, by Hindustan
Motors was maintained in 2009-10 which was 5.24 and on the lower side it was recorded at -2.36
in the year 2013-14. Average Cash size of Maharashtra Scow. as compared to its operating
cash flow was 10.85. The highest value, in proportion to its operating cash flow, by Maharashtra
Sco. was maintained in 2018-19 which was 69.37 and on the lower side it was recorded at -9.20
in the year 2015-16. Average Cash size of Kinetic Eng. as compared to its operating cash flow
was -0.06. The highest value, in proportion to its operating cash flow, by Kinetic Eng. was
maintained in 2013-14 which was 1.93 and on the lower side it was recorded at -4.44 in the year
2015-16. Average Cash size of Mahindra & Mahindra as compared to its operating cash flow
was 0.27. The highest value, in proportion to its operating cash flow, by Mahindra & Mahindra
was maintained in 2018-19 which was 0.48 and on the lower side it was recorded at -0.25 in the
year 2010-11. Average Cash size of Majestic Auto as compared to its operating cash flow was
4.56. The highest value, in proportion to its operating cash flow, by Majestic Auto was maintained
in 2015-16 which was 44.30 and on the lower side it was recorded at -3.92 in the year 2010-11.
Average Cash size of Maruti Suzuki as compared to its operating cash flow was 0.17. The
highest value, in proportion to its operating cash flow, by Maruti Suzuki was maintained in 2010-
11 which was 1.02 and on the lower side it was recorded at -0.63 in the year 2009-10. Average
Cash size of Premier as compared to its operating cash flow was -1.50. The highest value, in
proportion to its operating cash flow, by Premier was maintained in 2017-18 which was 1.40 and
on the lower side it was recorded at -15.90 in the year 2013-14. Average Cash size of Scooters
Ind. as compared to its operating cash flow was 0.83. The highest value, in proportion to its
operating cash flow, by Scooters Ind. was maintained in 2013-14 which was 7.07 and on the lower
side it was recorded at -5.71 in the year 2017-18.

105
TABLE: 4.6.1 FREE CASH FLOW TO OPERATING CASH FLOW
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.28 -0.55 0.05 -0.60 0.80 1.06 1.23 0.31 0.39 -5.37 -0.24 1.90 7
LEYLAND
ATUL AUTO 0.80 0.76 0.70 0.77 0.66 -0.01 0.08 0.80 1.22 0.20 0.60 0.39 18

BAJAJ AUTO 0.21 0.45 0.85 0.40 0.40 0.81 0.99 -0.10 0.55 0.90 0.55 0.34 19

EICHER -2.16 0.33 0.20 0.19 0.16 0.49 0.31 0.00 0.14 0.58 0.02 0.79 14
MOTORS
ESCORT -0.91 0.64 -1.40 -1.40 0.81 -1.51 0.71 0.54 0.20 1.06 -0.13 1.05 12

FORCE 0.67 -1.16 -4.85 -2.62 0.17 0.57 0.20 -2.49 0.69 -0.94 -0.98 1.84 8
MOTORS
HERO 1.22 0.42 1.04 0.61 0.45 1.01 0.42 0.52 0.52 2.35 0.86 0.60 15
MOTOCORP
HINDUSTAN 5.24 0.29 0.00 -0.37 -2.36 1.02 1.04 1.01 -1.37 0.84 0.53 2.00 6
MOTORS
MAHARASTRA -0.11 -0.49 -0.34 -3.39 -1.59 -4.31 -9.20 -1.92 60.50 69.37 10.85 28.71 1
SCO.
KINETIC ENG. -2.10 1.04 0.47 2.04 1.93 -1.89 -4.44 1.53 0.31 0.47 -0.06 2.10 5

MAHINDRA 0.42 -0.25 0.31 0.30 0.35 0.25 0.35 0.19 0.27 0.48 0.27 0.20 20
&MAH.
MAJESTIC -0.69 -3.92 1.26 -0.77 -1.82 -0.68 44.30 1.99 5.02 0.95 4.56 14.17 2
AUTO
MARUTI -0.63 1.02 -0.21 0.18 0.00 0.30 0.15 0.11 0.30 0.46 0.17 0.43 17
SUZUKI
PREMIER -0.98 -1.81 -0.13 -0.02 -15.90 0.98 0.98 0.77 1.40 -0.24 -1.50 5.16 3

SCOOTERS 0.96 1.01 1.09 1.03 7.07 0.48 0.53 0.83 -5.71 1.02 0.83 3.02 4
IND.
SML 0.94 0.69 0.64 2.12 1.13 -0.50 2.12 0.26 0.26 4.00 1.17 1.28 10

SUNDARAM 0.61 -0.85 0.76 0.72 0.93 0.52 0.99 0.63 4.15 0.44 0.89 1.26 11
CLY.
TATA -0.85 -0.68 1.04 1.44 2.04 0.77 -0.21 -0.98 0.83 0.39 0.38 1.03 13
MOTORS
TVS 0.16 1.16 0.14 0.76 0.50 -4.81 0.35 -0.03 0.13 0.09 -0.16 1.68 9

VSTILLERS -0.11 0.29 0.71 0.78 0.00 0.51 0.50 0.13 -0.08 1.26 0.40 0.44 16

TREND 0.15 -0.08 0.12 0.11 -0.21 -0.25 2.07 0.2 3.49 3.92 0.95 1.60

106
4.6.2 FREE CASH FLOW TO OPERATING CASH FLOW

Chart Title
35
30
25
20
15
10
5
0
-5

MEAN SD

Average Cash size of SML as compared to its operating cash flow was 1.17. The highest value,
in proportion to its operating cash flow, by SML was maintained in 2018-19 which was 4.00 and
on the lower side it was recorded at -0.50 in the year 2014-15. Average Cash size of Sundaram
Cly. as compared to its operating cash flow was 0.89. The highest value, in proportion to its
operating cash flow, by Sundaram Cly as maintained in 2017-18 which was 4.15 and on the lower
side it was recorded at -0.85 in the year 2010-11. Average Cash size of TATA Motors as
compared to its operating cash flow was 0.38. The highest value, in proportion to its operating
cash flow, by TATA Motors was maintained in 2013-14 which was 2.04 and on the lower side it
was recorded at -0.98 in the year 2016-17. Average Cash size of TVS as compared to its operating
cash flow was -0.16. The highest value, in proportion to its operating cash flow, by TVS was
maintained in 2010-11 which was 1.16 and on the lower side it was recorded at -4.81 in the year
2014-15. Average Cash size of VSTillers as compared to its operating cash flow was 0.40. The
highest value, in proportion to its operating cash flow, by VSTillers was maintained in 2018-19
which was 1.26 and on the lower side it was recorded at -0.11 in the year 2009-10.

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4.7 OPERATING INDEX
Operating index calculated as operating cash flow divided by profit before tax.
Average value maintained by the industry is 0.53 of the profit before tax. Maximum cash
size was 2.32 in the year 2013-14 and the least cash size was -2.83 in the year 2017-18. Average
Cash size of Ashok Leyland as compared to its profit before tax was 0.91. The highest value,
in proportion to its profit before tax, by Ashok Leyland was maintained in 2014-15 which was
3 . 9 9 and on the lower side it was recorded at -6.10 in the year 2013-14. Average Cash size of
Atul Auto as compared to its profit before tax was 0.80. The highest value, in proportion to its
profit before tax, by Atul Auto was maintained in 2009-10 which was 1.34 and on the lower side
it was recorded at 0.15 in the year 2015-16. Average Cash size of Bajaj Auto as compared to
its profit before tax was 0.66. The highest value, in proportion to its profit before tax, by Bajaj
Auto was maintained in 2009-10 which was 1.14 and on the lower side it was recorded at 0.37 in
the year 2018-19. Average Cash size of Eicher Motors as compared to its profit before tax was
0.83. The highest value, in proportion to its profit before tax, by Eicher Motors was maintained in
2014-15 which was 1.12 and on the lower side it was recorded at 0.51 in the year 2018-19.
Average Cash size of Escort as compared to its profit before tax was 0.91. The highest value, in
proportion to its profit before tax, by Escort was maintained in 2015-16 which was 2.49 and on
the lower side it was recorded at -0.33 in the year 2018-19. Average Cash size of Force Motors
as compared to its profit before tax was 1.44. The highest value, in proportion to its profit before
tax, by Force Motors was maintained in 2013-14 which was 1.93 and on the lower side it was
recorded at -0.14 in the year 2011-12. Average Cash size of Hero MotoCorp as compared to
its profit before tax was 0.81. The highest value, in proportion to its profit before tax, by Hero
MotoCorp was maintained in 2009-10 which was 1.20 and on the lower side it was recorded at
0.20 in the year 2018-19. Average Cash size of Hindustan Motors as compared to its profit
before tax was 5.90. The highest value, in proportion to its profit before tax, by Hindustan Motors
was maintained in 2013-14 which was 33.97 and on the lower side it was recorded at -0.79 in the
year 2014-15. Average Cash size of Maharashtra Scow. as compared to its profit before tax
was 0.32. The highest value, in proportion to its profit before tax, by Maharashtra Sco. was
maintained in 2011-12 which was 6.99 and on the lower side it was recorded at -1.78 in the year
2009-10.

108
TABLE: 4.7.1 OPERATING INDEX RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 2.00 0.74 1.62 1.55 -6.10 3.99 1.43 1.62 2.43 -0.15 0.91 2.69 8
LEYLAND
ATUL AUTO 1.34 1.19 0.81 1.09 0.72 0.60 0.15 1.28 0.38 0.42 0.80 0.41 14

BAJAJ AUTO 1.14 0.47 0.74 0.50 0.77 0.53 0.68 0.63 0.74 0.37 0.66 0.22 19

EICHER 0.51 0.68 1.09 1.02 0.86 1.12 0.80 0.77 0.95 0.51 0.83 0.22 18
MOTORS
ESCORT 0.45 1.86 0.63 0.63 1.21 0.14 2.49 1.09 0.93 -0.33 0.91 0.82 13

FORCE 1.37 0.89 -0.14 4.35 1.93 1.81 1.06 0.26 1.28 1.61 1.44 1.21 11
MOTORS
HERO 1.20 0.95 0.82 0.75 1.03 0.68 0.89 0.86 0.76 0.20 0.81 0.26 16
MOTOCORP
HINDUSTAN -0.32 23.46 2.99 1.36 33.97 -0.79 -0.27 -0.34 -0.54 -0.53 5.90 12.33 3
MOTORS
MAHARASTRA -1.78 -0.58 6.99 -0.15 -0.12 -0.18 -0.08 -0.88 0.01 0.01 0.32 2.41 9
SCO.
KINETIC ENG. -8.60 1.21 2.17 0.58 -0.22 -1.19 12.38 -0.22 -0.98 -0.11 0.50 5.10 4

MAHINDRA 0.82 0.85 0.76 0.93 0.85 0.77 1.28 0.77 1.15 0.78 0.90 0.18 20
&MAH.
MAJESTIC -0.15 2.15 0.97 -1.46 -0.56 -1.32 -0.32 -0.75 7.69 1.07 0.73 2.69 7
AUTO
MARUTI 0.84 0.98 1.19 1.47 1.34 1.32 1.14 1.03 1.07 0.63 1.10 0.25 17
SUZUKI
PREMIER 1.92 1.23 5.63 -0.34 0.24 -2.29 -0.32 0.07 -0.44 0.14 0.58 2.09 10

SCOOTERS 0.84 1.73 -0.67 -13.97 -0.37 -1.61 -2.03 0.61 0.05 1.97 -1.35 4.62 5
IND.
SML 3.56 0.68 1.24 -0.52 9.14 1.41 -0.01 0.09 1.43 -3.47 1.36 3.27 6

SUNDARAM 7.66 0.93 0.41 2.31 1.50 1.01 0.80 1.40 -70.83 1.34 -5.35 23.10 1
CLY.
TATA 2.26 0.69 2.72 12.91 -2.40 0.64 -40.28 -0.57 -4.37 2.62 -2.58 14.02 2
MOTORS
TVS 4.45 0.82 1.39 2.56 1.49 0.19 1.50 1.04 1.48 1.14 1.61 1.17 12

VSTILLERS 0.25 0.72 -0.13 0.72 1.07 0.26 0.77 0.90 0.22 0.60 0.54 0.37 15

TREND 0.99 2.08 1.56 0.81 2.32 0.35 -0.9 0.48 -2.83 0.44 0.53 1.50

109
Average Cash size of Kinetic Eng. as compared to its profit before tax was 0.50. The highest
value, in proportion to its profit before tax, by Kinetic Eng. was maintained in 2015-16 which was
12.38 and on the lower side it was recorded at -8.60 in the year 2009-10. Average Cash size of
Mahindra & Mahindra as compared to its profit before tax was 0.90. The highest value, in
proportion to its profit before tax, by Mahindra & Mahindra was maintained in 2015-16 which
was 1.28 and on the lower side it was recorded at 0.76 in the year 2011-12. Average Cash size of
Majestic Auto as compared to its profit before tax was 0.73. The highest value, in proportion to
its profit before tax, by Majestic Auto was maintained in 2017-18 which was 7.69 and on the lower
side it was recorded at -1.46 in the year 2012-13. Average Cash size of Maruti Suzuki as
compared to its profit before tax was 1.10. The highest value, in proportion to its profit before tax,
by Maruti Suzuki was maintained in 2012-13 which was 1.47 and on the lower side it was recorded
at 0.63 in the year 2018-19. Average Cash size of Premier as compared to its profit before tax
was 0.58. The highest value, in proportion to its profit before tax, by Premier was maintained in
2011-12 which was 5.63 and on the lower side it was recorded at -2.29 in the year 2014-15.
Average Cash size of Scooters Ind. as compared to its profit before tax was -1.35.

4.7.2 OPERATING INDEX

Chart Title
25

20

15

10

-5

-10

MEAN SD

110
The highest value, in proportion to its profit before tax, by Scooters Ind. was maintained in 2018-
19 which was 1.97 and on the lower side it was recorded at -13.97 in the year 2012-13. Average
Cash size of SML as compared to its profit before tax was 1.36. The highest value, in proportion
to its profit before tax, by SML was maintained in 2018-19 which was 9.14 and on the lower side
it was recorded at -3.47 in the year 2018-19. Average Cash size of Sundaram Cly. as compared
to its profit before tax was -5.35. The highest value, in proportion to its profit before tax, by
Sundaram Cly as maintained in 2009-10 which was 7.66 and on the lower side it was recorded at
-70.83 in the year 2017-18. Average Cash size of TATA Motors as compared to its profit before
tax was -2.58. The highest value, in proportion to its profit before tax, by TATA Motors was
maintained in 2012-13 which was 12.91 and on the lower side it was recorded at -40.28 in the
year 2015-16. Average Cash size of TVS as compared to its profit before tax was 1.61. The
highest value, in proportion to its profit before tax, by TVS was maintained in 2009-10 which was
4.45 and on the lower side it was recorded at 0.82 in the year 2010-11. Average Cash size of
VSTillers as compared to its profit before tax was 0.54. The highest value, in proportion to its
profit before tax, by VSTillers was maintained in 2013-14 which was 1.07 and on the lower side
it was recorded at -0.13 in the year 2011-12.

4.8 CASH GENERATING POWER RATIO

Cash generating power ratio is calculated as operating cash flow divided by cash flow from all
three activities. It is a powerful ratio as it measures the company’s ability to generate cash flow
from operations compared to the total values operating, investing and financing activities.
Average value maintained by the industry is 6.1 of the total values. Maximum cash size
was 365.82 in the year 2018-19 and the least cash size was -375.28 in the year 2014-15. Average
Cash size of Ashok Leyland as compared to its total values was -23.8. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2017-18 which was 4 3 . 3 7
and on the lower side it was recorded at -237.05 in the year 2013-14. Average Cash size of Atul
Auto as compared to its total values was -3.1. The highest value, in proportion to its total values,
by Atul Auto was maintained in 2010-11 which was 14.04 and on the lower side it was recorded
at -44.37 in the year 2009-10. Average Cash size of Bajaj Auto as compared to its total values
was -3.9. The highest value, in proportion to its total values, by Bajaj Auto was maintained in

111
2010-11 which was 36.99 and on the lower side it was recorded at -77.19 in the year 2009-10.
Average Cash size of Eicher Motors as compared to its total values was 75.1. The highest value,
in proportion to its total values, by Eicher Motors was maintained in 2016-17 which was 423.52
and on the lower side it was recorded at -173.65 in the year 2015-16. Average Cash size of Escort
as compared to its total values was 1.2. The highest value, in proportion to its total values, by
Escort was maintained in 2016-17 which was 12.94 and on the lower side it was recorded at -11.09
in the year 2015-16. Average Cash size of Force Motors as compared to its total values was -
0.8. The highest value, in proportion to its total values, by Force Motors was maintained in 2015-
16 which was 15.41 and on the lower side it was recorded at -13.28 in the year 2013-14. Average
Cash size of Hero MotoCorp as compared to its total values was -49.6. The highest value, in
proportion to its total values, by Hero MotoCorp was maintained in 2017-18 which was 209.74
and on the lower side it was recorded at -422.14 in the year 2011-12. Average Cash size of
Hindustan Motors as compared to its total values was 160.2. The highest value, in proportion
to its total values, by Hindustan Motors was maintained in 2016-17 which was 1723.95 and on the
lower side it was recorded at -105.89 in the year 2015-16. Average Cash size of Maharashtra
Scow. as compared to its total values was -0.9. The highest value, in proportion to its total values,
by Maharashtra Sco. was maintained in 2010-11 which was 10.08 and on the lower side it was
recorded at -12.08 in the year 2018-19. Average Cash size of Kinetic Eng. as compared to its
total values was 61.1. The highest value, in proportion to its total values by Kinetic Eng. was
maintained in 2011-12 which was 302.22 and on -the lower side it was recorded at -6.96 in the
year 2017-18. Average Cash size of Mahindra & Mahindra as compared to its total values was
9.3. The highest value, in proportion to its total values, by Mahindra & Mahindra was maintained
in 2012-13 which was 148.75 and on the lower side it was recorded at -73.30 in the year 2015-
16. Average Cash size of Majestic Auto as compared to its total values was 618. The highest
value, in proportion to its total values, by Majestic Auto was maintained in 2018-19 which was
6938.24 and on the lower side it was recorded at -611.07 in the year 2012-13. Average Cash size
of Maruti Suzuki as compared to its total values was 7.4. The highest value, in proportion to its
total values, by Maruti Suzuki was maintained in 2015-16 which was 409.88 and on the lower side
it was recorded at -394.05 in the year 2016-17. Average Cash size of Premier as compared to
its total values was -734.

112
TABLE: 4.8.1 CASH GENERATING POWER RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 2.53 -1.74 -7.38 -38.25 -237.0 2.53 2.02 -3.11 43.37 -1.09 -23.8 77.42 8
LEYLAND
ATUL AUTO -44.37 14.04 2.22 1.52 4.34 -3.08 -0.84 1.64 -1.07 -4.93 -3.1 15.41 16

BAJAJ AUTO -77.19 36.99 3.12 -3.43 -55.40 24.18 15.03 -6.19 9.31 14.52 -3.9 35.61 14

EICHER -0.43 -35.74 365.85 24.25 28.18 83.93 -173.6 423.52 32.89 2.68 75.1 181.87 6
MOTORS
ESCORT -10.07 1.68 -0.55 -0.55 10.87 -0.38 -11.09 12.94 5.01 3.84 1.2 7.74 19

FORCE 6.44 -6.63 -0.31 -0.35 -13.28 2.65 15.41 2.01 -5.46 -8.37 -0.8 8.19 18
MOTORS
HERO 54.06 -97.87 -422.1 18.68 -41.83 71.29 -94.31 -348.75 209.74 155.40 -49.6 203.30 5
MOTOCORP
HINDUSTAN 0.51 7.58 11.91 8.49 7.16 -50.40 -105.9 1723.95 -2.03 1.01 160.2 550.69 3
MOTORS
MAHARASTRA 1.93 10.08 -11.64 -0.31 0.33 -0.93 1.27 -0.56 2.81 -12.08 -0.9 6.58 20
SCO.
KINETIC ENG. 4.16 0.96 302.22 265.41 47.46 -3.04 3.62 2.87 -6.96 -5.86 61.1 118.72 7

MAHINDRA 11.28 -2.62 5.03 148.75 7.51 -4.08 -73.30 -13.99 7.96 6.01 9.3 54.94 12
&MAH.
MAJESTIC -4.16 48.06 -13.66 -611.0 19.84 -1.85 0.17 -22.68 -172.8 6938.24 618.0 2229.26 2
AUTO
MARUTI -1.65 1.27 31.76 -28.07 -88.83 -124.7 409.88 -394.05 207.12 61.56 7.4 209.41 4
SUZUKI
PREMIER 4.78 3.30 -117.6 -15.96 0.35 -7527. 96.32 10.62 120.11 81.62 -734. 2387.68 1

SCOOTERS -35.53 11.02 0.83 98.04 -1.09 44.26 1.25 1.07 0.13 0.98 12.1 35.74 13
IND.
SML 4.47 4.08 1.95 1.07 72.95 -2.98 1.51 -51.67 -52.82 -2.25 -2.4 34.61 15

SUNDARAM -5.36 -0.60 58.49 -0.98 1.03 -4.75 1.73 -173.14 0.48 2.72 -12.0 59.64 10
CLY.
TATA 74.22 2.38 -8.36 -2.84 -141.2 -3.82 2.53 3.23 13.00 -109.21 -17.0 62.16 9
MOTORS
TVS 2.39 -1.16 -3.28 2.41 7.99 -1.09 35.01 -7.47 14.22 6.22 5.5 12.05 17

VSTILLERS -4.04 8.90 14.53 3.92 -12.60 -6.13 9.85 9.93 -1.73 185.33 20.8 58.44 11

TREND -0.8 0.2 10.65 -6.46 -19.17 - 6.83 58.51 21.16 365.82 6.1 175.98
375.28

113
The highest value, in proportion to its total values, by Premier was maintained in 2017-18 which
was 120.11 and on the lower side it was recorded at -7527.1 in the year 2014-15. Average Cash
size of Scooters Ind. as compared to its total values was 12.1. The highest value, in proportion
to its total values, by Scooters Ind. was maintained in 2012-13 which was 98.04 and on the lower
side it was recorded at -35.53 in the year 2009-10. Average Cash size of SML as compared to
its total values was -2.4. The highest value, in proportion to its total values, by SML was
maintained in 2013-14 which was 72.95 and on the lower side it was recorded at -52.82 in the
year 2017-18. Average Cash size of Sundaram Cly. as compared to its total value was -12. The
highest value, in proportion to its total values, by Sundaram Cly as maintained in 2011-12 which
was 58.49 and on the lower side it was recorded at -173.14 in the year 2016-17.

4.8.2 CASH GENERATING POWER RATIO

Chart Title
3000

2500

2000

1500

1000

500

-500

-1000

MEAN SD

Average Cash size of TATA Motors as compared to its total values was -17. The highest value,
in proportion to its total values, by TATA Motors was maintained in 2009-10 which was 74.22
and on the lower side it was recorded at -141.25 in the year 2013-14. Average Cash size of TVS
as compared to its total values was 5.5. The highest value, in proportion to its total values, by TVS
was maintained in 2015-16 which was 35.01 and on the lower side it was recorded at -3.28 in the

114
year 2011-12. Average Cash size of VSTillers as compared to its total values was 20.8. The
highest value, in proportion to its total values, by VSTillers was maintained in 2017-18 which was
185.33 and on the lower side it was recorded at -12.60 in the year 2013-14.

4.9 EXTERNAL FINANCING INDEX RATIO

External financing index ratio calculated as cash flow from financing activity divided by cash flow
from operating activity. If the ratio is positive, it means that the company was not able to finance
its assets growth internally whereas if the ratio was negative it means that the company generated
more than enough cash to finance its assets growth.
Average value maintained by the industry is -0.89 of the total values. Maximum cash size
was 0.54 in the year 2013-14 and the least cash size was -3.8 in the year 2018-19. Average Cash
size of Ashok Leyland as compared to its operating cash flows 0.17. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2018-19 which was 4 . 4 6 and
on the lower side it was recorded at -0.81 in the year 2013-14. Average Cash size of Atul Auto
as compared to its operating cash flows -0.49. The highest value, in proportion to its total values,
by Atul Auto was maintained in 2012-13 which was -0.11 and on the lower side it was recorded
at -1.28 in the year 2015-16. Average Cash size of Bajaj Auto as compared to its operating
cash flows -0.53. The highest value, in proportion to its total values, by Bajaj Auto was maintained
in 2016-17 which was -0.06 and on the lower side it was recorded at -0.93 in the year 2015-16.
Average Cash size of Eicher Motors as compared to its operating cash flows -0.19. The highest
value, in proportion to its total values, by Eicher Motors was maintained in 2016-17 which was
0.00 and on the lower side it was recorded at -0.35 in the year 2010-11. Average Cash size of
Escort as compared to its operating cash flows -0.28. The highest value, in proportion to its total
values, by Escort was maintained in 2017-18 which was 0.41 and on the lower side it was recorded
at -1.10 in the year 2014-15. Average Cash size of Force Motors as compared to its operating
cash flows 0.43. The highest value, in proportion to its total values, by Force Motors was
maintained in 2016-17 which was 2.98 and on the lower side it was recorded at -0.87 in the year
2017-18. Average Cash size of Hero MotoCorp as compared to its operating cash flows –

115
TABLE: 4.9 EXTERNAL FINANCING INDEX RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.11 -0.02 -0.19 0.57 -0.81 -0.67 -0.74 -0.64 -0.36 4.46 0.17 1.57 6
LEYLAND
ATUL AUTO -0.82 -0.69 -0.25 -0.11 -0.43 -0.31 -1.28 -0.19 -0.43 -0.40 -0.49 0.35 16

BAJAJ AUTO -0.22 -0.42 -0.53 -0.69 -0.41 -0.77 -0.93 -0.06 -0.44 -0.83 -0.53 0.28 17

EICHER -0.19 -0.35 -0.19 -0.15 -0.12 -0.22 -0.32 0.00 -0.11 -0.21 -0.19 0.10 20
MOTORS
ESCORT 0.81 -0.04 -0.45 -0.45 -0.72 -1.10 -0.80 -0.46 0.41 0.00 -0.28 0.58 14

FORCE -0.51 1.01 1.64 -0.19 -0.25 -0.20 -0.14 2.98 -0.87 0.82 0.43 1.18 10
MOTORS
HERO -0.79 -0.43 -1.04 -0.56 -0.48 -0.99 -0.43 -0.52 -0.51 -2.34 -0.81 0.58 13
MOTOCORP
HINDUSTAN -3.26 -0.16 0.08 0.49 2.50 -1.04 -1.05 -0.95 0.87 0.15 -0.24 1.51 7
MOTORS
MAHARASTRA 0.63 0.59 0.26 0.18 4.60 3.23 9.99 0.14 -60.15 -69.45 -11.00 28.60 1
SCO.
KINETIC ENG. 2.34 0.00 -0.47 -2.03 -1.91 1.56 4.71 -1.18 -0.46 -0.64 0.19 2.10 5

MAHINDRA -0.34 -0.13 -0.11 -0.29 -0.22 -0.49 -0.37 -0.27 -0.15 -0.32 -0.27 0.12 19
&MAH.
MAJESTIC 0.45 3.94 -1.33 0.76 1.87 0.14 -38.46 -2.04 -5.02 -0.95 -4.06 12.32 2
AUTO
MARUTI 0.02 -0.23 0.24 -0.22 -0.01 -0.31 -0.15 -0.11 -0.29 -0.45 -0.15 0.20 18
SUZUKI
PREMIER 1.19 2.11 0.12 -0.04 18.73 -0.98 -0.97 -0.67 -1.39 0.25 1.84 6.03 3

SCOOTERS -0.99 -0.92 0.11 -1.02 -7.99 -0.46 0.26 0.11 13.59 0.00 0.27 5.28 4
IND.
SML -0.72 -0.45 -0.12 -1.18 -1.12 0.17 -1.45 -0.28 -0.28 -4.44 -0.99 1.32 9

SUNDARAM -0.80 -0.83 -0.74 -1.74 0.04 -0.73 -0.41 -0.64 -2.09 -0.06 -0.80 0.67 12
CLY.
TATA 0.86 1.09 -1.16 -1.79 -2.04 -1.03 -0.24 -0.17 -0.75 -0.40 -0.56 1.02 11
MOTORS
TVS 0.26 -2.02 -0.44 -0.35 -0.38 3.90 -0.33 -0.10 -0.06 0.07 0.06 1.49 8

VSTILLERS -0.13 -0.18 -0.64 -0.53 -0.08 -0.67 -0.40 -0.03 -0.50 -1.25 -0.44 0.37 15

TREND -0.11 0.09 -0.26 -0.47 0.54 -0.05 -1.68 -0.25 -2.95 -3.8 -0.89 1.44

116
0.81. The highest value, in proportion to its total values, by Hero MotoCorp was maintained in
2010-11 and 2015-16 which was -0.43 and on the lower side it was recorded at -2.34 in the year
2018-19. Average Cash size of Hindustan Motors as compared to its operating cash flows -
0.24. The highest value, in proportion to its total values, by Hindustan Motors was maintained in
2013-14 which was 2.50 and on the lower side it was recorded at -3.26 in the year 2009-10.
Average Cash size of Maharashtra Scow. as compared to its operating cash flows -11. The
highest value, in proportion to its total values, by Maharashtra Scow. was maintained in 2015-16
which was 9.99 and on the lower side it was recorded at -69.45 in the year 2017-18. Average Cash
size of Kinetic Eng. as compared to its operating cash flows 0.19. The highest value, in
proportion to its total values, by Kinetic Eng. was maintained in 2015-16 which was 4.71 and on
-the lower side it was recorded at -2.03 in the year 2012-13. Average Cash size of Mahindra &
Mahindra as compared to its operating cash flows -0.27.

4.9.2 EXTERNAL FINANCING INDEX RATIO

Chart Title
3000

2500

2000

1500

1000

500

-500

-1000

MEAN SD

117
The highest value, in proportion to its total values, by Mahindra & Mahindra was maintained in
2011-12 which was -0.11 and on the lower side it was recorded at -0.49 in the year 2014-15.
Average Cash size of Majestic Auto as compared to its operating cash flows -4.06. The highest
value, in proportion to its total values, by Majestic Auto was maintained in 2010-11 which was
3.94 and on the lower side it was recorded at -38.46 in the year 2015-16. Average Cash size of
Maruti Suzuki as compared to its operating cash flows -0.15. The highest value, in proportion
to its total values, by Maruti Suzuki was maintained in 2011-12 which was 0.24 and on the lower
side it was recorded at -0.45 in the year 2018-19. Average Cash size of Premier as compared to
its operating cash flows 1.84. The highest value, in proportion to its total values, by Premier was
maintained in 2013-14 which was 18.73 and on the lower side it was recorded at -1.39 in the year
2017-18. Average Cash size of Scooters Ind. as compared to its operating cash flows 0.27. The
highest value, in proportion to its total values, by Scooters Ind. was maintained in 2017-18 which
was 13.59 and on the lower side it was recorded at -7.99 in the year 2013-14. Average Cash size
of SML as compared to its operating cash flows -0.99. The highest value, in proportion to its total
values, by SML was maintained in 2014-15 which was 0.17 and on the lower side it was recorded
at -4.44 in the year 2018-19. Average Cash size of Sundaram Cly. as compared to its operating
cash flows -0.80. The highest value, in proportion to its total values, by Sundaram Cly as
maintained in 2013-14 which was 0.04 and on the lower side it was recorded at -2.09 in the year
2017-18. Average Cash size of TATA Motors as compared to its operating cash flows -0.56.
The highest value, in proportion to its total values, by TATA Motors was maintained in 2010-11
which was 1.09 and on the lower side it was recorded at -2.04 in the year 2013-14. Average Cash
size of TVS as compared to its operating cash flows 0.06. The highest value, in proportion to its
total values, by TVS was maintained in 2014-15 which was 3.90 and on the lower side it was
recorded at -2.02 in the year 2010-11. Average Cash size of VSTillers as compared to its
operating cash flows -0.44. The highest value, in proportion to its total values, by VSTillers was
maintained in 2016-17 which was -0.03 and on the lower side it was recorded at -1.25 in the year
2018-19.

118
4.10 PRICE TO CASH FLOW RATIO
Price to cash flow ratio calculated as share price divided by operating cash flow per share. It is
a stock valuation indicator that measures the value of cash flow per share. The ratio uses
operating cash flow which adds back noncash expenses such as depreciation and amortization
to net income.
Average value maintained by the industry is 1.03 of the total values. Maximum cash size
was 6.76 in the year 2014-15 and the least cash size was -4.09 in the year 2017-18. Average share
price of Ashok Leyland as compared to its operating cash flows 0.11. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2013-14 which was 0 . 4 8 and
on the lower side it was recorded at -0.81 in the year 2018-19. Average share price of Atul Auto
as compared to its operating cash flows 0.44. The highest value, in proportion to its total values,
by Atul Auto was maintained in 2015-16 which was 1.07 and on the lower side it was recorded at
0.16 in the year 2016-17. Average share price of Bajaj Auto as compared to its operating cash
flows 0.10. The highest value, in proportion to its total values, by Bajaj Auto was maintained in
2010-11 and 2012-13 which was 0.14 and on the lower side it was recorded at 0.05 in the year
2009-10. Average share price of Eicher Motors as compared to its operating cash flows 1.27.
The highest value, in proportion to its total values, by Eicher Motors was maintained in 2009-10
which was 6.16 and on the lower side it was recorded at 0.11 in the year 2017-18. Average share
price of Escort as compared to its operating cash flows 19.80. The highest value, in proportion
to its total values, by Escort was maintained in 2014-15 which was 125.08 and on the lower side
it was recorded at -5.09 in the year 2018-19. Average share price of Force Motors as compared
to its operating cash flows 0.10. The highest value, in proportion to its total values, by Force Motors
was maintained in 2009-10 which was 0.23 and on the lower side it was recorded at -0.09 in the
year 2011-12. Average share price of Hero MotoCorp as compared to its operating cash flows
0.02. The highest value, in proportion to its total values, by Hero MotoCorp was maintained in
2018-19 which was 0.04 and on the lower side it was recorded at 0.01 in the year 2009-10.
Average share price of Hindustan Motors as compared to its operating cash flows 2.94. The
highest value, in proportion to its total values, by Hindustan Motors was maintained in 2016-17
which was 15.96 and on the lower side it was recorded at -7.48 in the year 2018-19. Average share
price of Maharashtra Scow. as compared to its operating cash flows 2.53.

119
TABLE: 4.10.1 PRICE TO CASH FLOW RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.12 0.22 0.24 0.37 0.48 0.16 0.17 0.13 0.05 -0.81 0.11 0.35 12
LEYLAND
ATUL AUTO 0.61 0.35 0.39 0.29 0.38 0.32 1.07 0.16 0.44 0.34 0.44 0.25 13

BAJAJ AUTO 0.05 0.14 0.10 0.14 0.08 0.13 0.08 0.09 0.07 0.12 0.10 0.03 18

EICHER 6.16 3.20 1.42 0.73 0.40 0.14 0.18 0.15 0.11 0.17 1.27 1.97 9
MOTORS
ESCORT 12.39 5.64 22.13 22.13 3.73 125.08 5.35 4.08 2.60 -5.09 19.80 37.98 1

FORCE 0.23 0.18 -0.09 0.16 0.11 0.06 0.05 0.22 0.05 0.04 0.10 0.10 17
MOTORS
HERO 0.01 0.02 0.02 0.02 0.01 0.02 0.01 0.01 0.01 0.04 0.02 0.01 20
MOTOCORP
HINDUSTAN 15.12 -0.91 -0.87 -0.85 -3.85 3.15 12.26 15.96 -3.12 -7.48 2.94 8.43 4
MOTORS
MAHARASTRA -1.00 -0.93 -0.25 -1.51 -2.01 -1.13 -1.43 -0.95 16.95 17.52 2.53 7.77 6
SCO.
KINETIC ENG. -0.51 -0.78 -0.69 -1.31 1.03 -1.12 -1.09 5.39 2.19 18.73 2.18 6.18 7

MAHINDRA 1.24 1.03 1.12 0.74 0.83 0.96 0.57 0.78 0.88 1.26 0.94 0.22 14
&MAH.
MAJESTIC -3.03 0.60 0.65 0.65 -0.39 -0.67 -7.29 0.83 0.69 0.21 -0.78 2.57 8
AUTO
MARUTI 0.05 0.05 0.06 0.03 0.03 0.02 0.02 0.01 0.01 0.02 0.03 0.02 19
SUZUKI
PREMIER 0.76 1.05 0.38 -0.63 -23.76 0.18 3.75 -3.97 0.55 -1.10 -2.28 7.79 5

SCOOTERS -1.82 -1.45 3.21 1.02 -16.76 -4.79 -7.30 -13.93 -86.91 -9.59 -13.83 26.46 2
IND.
SML 0.13 0.42 0.19 -0.57 0.09 0.21 -1.23 0.12 0.12 -0.44 -0.10 0.50 10

SUNDARAM 0.18 0.45 28.45 12.69 11.13 11.84 7.82 6.02 -17.00 5.80 6.74 11.55 3
CLY.
TATA 0.08 0.36 0.15 0.24 0.22 -0.21 0.21 0.42 0.14 0.09 0.17 0.17 15
MOTORS
TVS 0.07 0.23 0.11 0.11 0.09 0.56 0.05 0.07 0.04 0.04 0.14 0.16 16

VSTILLERS 0.57 0.17 -0.90 0.17 0.07 0.33 0.10 0.10 0.26 0.20 0.11 0.38 11

TREND 1.57 0.5 2.79 1.73 -1.4 6.76 0.67 0.78 -4.09 1 1.03 2.77

120
The highest value, in proportion to its total values, by Maharashtra Sco. was maintained in 2018-
19 which was 17.52 and on the lower side it was recorded at -1.43 in the year 2015-16. Average
share price of Kinetic Eng. as compared to its operating cash flows 2.18. The highest value, in
proportion to its total values, by Kinetic Eng. was maintained in 2018-19 which was 18.73 and on
-the lower side it was recorded at -1.31 in the year 2012-13. Average share price of Mahindra &
Mahindra as compared to its operating cash flows 0.94. The highest value, in proportion to its
total values, by Mahindra & Mahindra was maintained in 2018-19 which was 1.26 and on the
lower side it was recorded at 0.57 in the year 2015-16. Average share price of Majestic Auto as
compared to its operating cash flows -0.78. The highest value, in proportion to its total values, by
Majestic Auto was maintained in 2016-17 which was 0.83 and on the lower side it was recorded
at -7.29 in the year 2015-16. Average share price of Maruti Suzuki as compared to its operating
cash flows 0.03. The highest value, in proportion to its total values, by Maruti Suzuki was
maintained in 2011-12 which was 0.06 and on the lower side it was recorded at 0.01 in the year
2016-17 and 2017-18.

4.10.2 PRICE TO CASH FLOW RATIO

Chart Title
50

40

30

20

10

-10

-20

MEAN SD

121
Average share price of Premier as compared to its operating cash flows -2.28. The highest value,
in proportion to its total values, by Premier was maintained in 2015-16 which was 3.75 and on the
lower side it was recorded at -23.76 in the year 2013-14. Average share price of Scooters Ind.
as compared to its operating cash flows -13.83. The highest value, in proportion to its total values,
by Scooters Ind. was maintained in 2011-12 which was 3.21 and on the lower side it was recorded
at -86.91 in the year 2017-18. Average share price of SML as compared to its operating cash
flows -0.10. The highest value, in proportion to its total values, by SML was maintained in 2010-
11 which was 0.42 and on the lower side it was recorded at -1.23 in the year 2015-16. Average
share price of Sundaram Cly. as compared to its operating cash flows -6.74. The highest value,
in proportion to its total values, by Sundaram Cly as maintained in 2009-10 which was 28.45 and
on the lower side it was recorded at -17 in the year 2017-18. Average share price of TATA
Motors as compared to its operating cash flows 0.17. The highest value, in proportion to its total
values, by TATA Motors was maintained in 2016-17 which was 0.42 and on the lower side it was
recorded at -0.21 in the year 2014-15. Average share price of TVS as compared to its operating
cash flows 0.14. The highest value, in proportion to its total values, by TVS was maintained in
2014-15 which was 0.56 and on the lower side it was recorded at 0.04 in the year 2017-18 and
2018-19. Average share price of VSTillers as compared to its operating cash flows 0.11. The
highest value, in proportion to its total values, by VSTillers was maintained in 2009-10 which was
0.57 and on the lower side it was recorded at -0.90 in the year 2011-12.

4.11 CASH FLOW INTEREST COVERAGE RATIO

Cash flow interest coverage ratio calculated as addition of cash flow from operating activity and
interest expense divided by interest expense. This ratio is an indicator of the ability of a company
to pay interest and principal amount when they become due. This ratio tells the number of times
the financial obligations of a company are covered by its earnings.
Average value maintained by the industry is -566.9 of the total values. Maximum cash size
was 1000.2 in the year 2017-18 and the least cash size was -3311.7 in the year 2012-13. Average
operating cash and interest expense of Ashok Leyland as compared to its operating cash flows
9.3. The highest value, in proportion to its total values, by Ashok Leyland was maintained in 2017-
18 which was 4 0 . 8 0 and on the lower side it was recorded at -3.03 in the year 2018-19.

122
Operating cash and interest expense of Atul Auto as compared to its operating cash flows 145.6.
The highest value, in proportion to its total values, by Atul Auto was maintained in 2016-17 which
was 579.85 and on the lower side it was recorded at 4.44 in the year 2009-10. Operating cash
and interest expense of Bajaj Auto as compared to its operating cash flows 3669.7. The highest
value, in proportion to its total values, by Bajaj Auto was maintained in 2017-18 which was 9684.6
and on the lower side it was recorded at 134.09 in the year 2009-10. Operating cash and interest
expense of Eicher Motors as compared to its operating cash flows 667.7. The highest value, in
proportion to its total values, by Eicher Motors was maintained in 2012-13 which was 1366.96
and on the lower side it was recorded at 18.02 in the year 2009-10. Operating cash and interest
expense of Escort as compared to its operating cash flows 4.4. The highest value, in proportion
to its total values, by Escort was maintained in 2016-17 which was 11.9 and on the lower side it
was recorded at -21.56 in the year 2018-19. Operating cash and interest expense of Force Motors
as compared to its operating cash flows 22.7. The highest value, in proportion to its total values,
by Force Motors was maintained in 2015-16 which was 68.01 and on the lower side it was recorded
at -2.98 in the year 2009-10. Operating cash and interest expense of Hero MotoCorp as
compared to its operating cash flows 3579.1. The highest value, in proportion to its total values,
by Hero MotoCorp was maintained in 2018-19 which was 9048.41 and on the lower side it was
recorded at 107.11 in the year 2011-12. Operating cash and interest expense of Hindustan
Motors as compared to its operating cash flows -0.9. The highest value, in proportion to its total
values, by Hindustan Motors was maintained in 2014-15 which was 5.38 and on the lower side it
was recorded at –7.48 in the year 2018-19. Operating cash and interest expense of Maharashtra
Scow. as compared to its operating cash flows -19596. The highest value, in proportion to its
total values, by Maharashtra Sco. was maintained in 2018-19 which was 0.00 and on the lower
side it was recorded at -75465 in the year 2012-13. Operating cash and interest expense of Kinetic
Eng. as compared to its operating cash flows 0.0. The highest value, in proportion to its total
values, by Kinetic Eng. was maintained in 2017-18 which was 3.48 and on -the lower side it was
recorded at -3.06 in the year 2015-16. Operating cash and interest expense of Mahindra &
Mahindra as compared to its operating cash flows 28.7. The highest value, in proportion to its
total values, by Mahindra & Mahindra was maintained in 2009-10 which was 85.02 and on the
lower side it was recorded at -58.25 in the year 2010-11.

123
TABLE: 4.11 CASH FLOW INTEREST COVERAGE RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 9.56 4.34 5.98 3.07 2.39 6.35 8.22 14.87 40.80 -3.03 9.3 12.1 11
LEYLAND
ATUL AUTO 4.44 10.80 30.24 245.35 132.85 121.70 74.36 579.85 164.48 91.68 145.6 169.6 5

BAJAJ AUTO 458.71 1206.46 134.09 3953.54 7237.14 331.87 7595.6 5386.8 9684.6 708.25 3669.7 3592.2 2

EICHER 18.02 42.75 732.69 1366.96 411.75 1407.6 696.44 632.49 828.43 539.70 667.7 467.0 4
MOTORS
ESCORT 8.26 8.34 1.57 1.57 3.97 1.17 6.02 11.90 23.02 -21.56 4.4 11.2 13

FORCE 4.50 4.21 -2.98 11.47 14.75 38.68 68.01 15.07 49.76 23.26 22.7 22.7 10
MOTORS
HERO 450.27 1354.91 107.11 3501.80 6048.78 347.69 8154.73 6497.81 9048.41 279.14 3579.1 3552.7 3
MOTOCORP
HINDUSTAN 1.97 -2.25 -4.88 -3.07 0.57 5.38 1.83 1.64 -2.84 -7.48 -0.9 3.8 15
MOTORS
MAHARASTRA - -13108. -64784 -75465. -11383. - 0.00 0.00 0.00 0.00 - 27776.7 1
SCO. 22797. 8425.0 19596.

KINETIC ENG. -2.05 -1.29 -1.02 0.11 2.46 -1.36 -3.06 1.95 3.48 1.23 0.0 2.1 19

MAHINDRA 85.02 -58.25 18.88 32.56 20.47 21.56 39.16 32.50 55.01 39.63 28.7 36.4 7
&MAH.
MAJESTIC 0.01 3.34 2.50 2.50 -1.01 -0.50 0.91 1.78 3.59 8.96 2.2 2.9 16
AUTO
MARUTI 91.50 126.01 47.38 24.10 28.88 32.12 105.10 116.04 35.09 87.98 69.4 39.8 6
SUZUKI
PREMIER 4.64 2.16 2.91 0.07 0.98 3.72 1.14 0.89 1.84 0.57 1.9 1.5 20

SCOOTERS -3.40 -1.82 1.87 45.78 -6.79 -59.92 -7.65 -6.58 -0.66 0.00 -3.9 25.2 9
IND.
SML 6.74 4.78 8.01 -0.36 28.47 12.81 -1.28 30.50 20.52 -2.12 10.8 12.0 12

SUNDARAM 6.10 2.92 1.99 2.95 4.12 4.00 6.58 7.03 -0.78 4.18 3.9 2.3 17
CLY.
TATA 6.80 2.32 4.45 2.64 3.44 -1.23 3.22 2.13 4.28 5.69 3.4 2.2 18
MOTORS
TVS 6.37 5.31 8.72 9.08 24.59 3.91 20.22 17.98 24.17 14.57 13.5 7.9 14

VSTILLERS 23.50 72.79 -10.60 41.40 75.58 13.28 34.24 31.07 20.70 20.22 32.2 26.2 8

TREND - -516.01 - -3311.7 132.52 - 840.19 668.79 1000.2 89.54 -566.9 1549.3
1080.8 3184.75 306.81

124
4.11.2 CASH FLOW INTEREST COVERAGE RATIO

Chart Title
40000

30000

20000

10000

-10000

-20000

-30000

MEAN SD

Operating cash and interest expense of Majestic Auto as compared to its operating cash flows
2.2. The highest value, in proportion to its total values, by Majestic Auto was maintained in 2018-
19 which was 8.96 and on the lower side it was recorded at -1.01 in the year 2013-14. Operating
cash and interest expense of Maruti Suzuki as compared to its operating cash flows 69.4. The
highest value, in proportion to its total values, by Maruti Suzuki was maintained in 2010-11 which
was 126.01 and on the lower side it was recorded at 24.10 in the year 2012-13. Operating cash
and interest expense of Premier as compared to its operating cash flows 1.9. The highest value,
in proportion to its total values, by Premier was maintained in 2009-10 which was 4.64 and on the
lower side it was recorded at 0.07 in the year 2012-13. Operating cash and interest expense of
Scooters Ind. as compared to its operating cash flows -3.9. The highest value, in proportion to
its total values, by Scooters Ind. was maintained in 2012-13 which was 45.78 and on the lower
side it was recorded at -59.92 in the year 2014-15. Operating cash and interest expense of SML
as compared to its operating cash flows 10.8. The highest value, in proportion to its total values,
by SML was maintained in 2016-17 which was 30.50 and on the lower side it was recorded at -
2.12 in the year 2018-19. Operating cash and interest expense of Sundaram Cly. as compared
to its operating cash flows 3.9. The highest value, in proportion to its total values, by Sundaram
Cly as maintained in 2016-17 which was 7.03 and on the lower side it was recorded at -0.78 in

125
the year 2017-18. Operating cash and interest expense of TATA Motors as compared to its
operating cash flows 3.4. The highest value, in proportion to its total values, by TATA Motors was
maintained in 2009-10 which was 6.80 and on the lower side it was recorded at -1.23 in the year
2014-15. Operating cash and interest expense of TVS as compared to its operating cash flows
13.5. The highest value, in proportion to its total values, by TVS was maintained in 2013-14 which
was 24.59 and on the lower side it was recorded at 3.91 in the year 2014-15. Operating cash and
interest expense of VSTillers as compared to its operating cash flows 32.2. The highest value,
in proportion to its total values, by VSTillers was maintained in 2010-11 which was 72.79 and on
the lower side it was recorded at -10.60 in the year 2011-12.

4.12 CASH FLOW FROM OPERATING ACTIVITY TO FIXED ASSETS

Cash flow from operating activity to fixed assets calculated as cash flow from operating activity
divided by fixed assets.
Average value maintained by the industry is 0.30 of the total values. Maximum cash size
was 0.49 in the year 2012-13 and the least cash size was 0.03 in the year 2011-12. Average
operating cash of Ashok Leyland as compared to its fixed assets 0.28. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2017-18 which was 1 . 0 1 and
on the lower side it was recorded at -0.06 in the year 2018-19. Operating cash of Atul Auto as
compared to its fixed assets 0.44. The highest value, in proportion to its total values, by Atul Auto
was maintained in 2012-13 which was 0.85 and on the lower side it was recorded at 0.12 in the
year 2015-16. Operating cash of Bajaj Auto as compared to its fixed assets 1.57. The highest
value, in proportion to its total values, by Bajaj Auto was maintained in 2017-18 which was 2.20
and on the lower side it was recorded at 1.02 in the year 2012-13. Operating cash of Eicher
Motors as compared to its fixed assets 1.18. The highest value, in proportion to its total values,
by Eicher Motors was maintained in 2014-15 which was 2.07 and on the lower side it was recorded
at 0.58 in the year 2009-10. Operating cash of Escort as compared to its fixed assets 0.09. The
highest value, in proportion to its total values, by Escort was maintained in 2017-18 which was
0.29 and on the lower side it was recorded at -0.14 in the year 2018-19.

126
TABLE: 4.12 CASH FLOW FROM OPERATING ACTIVITY TO FIXED ASSETS
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.23 0.12 0.20 0.12 0.10 0.33 0.33 0.42 1.01 -0.06 0.28 0.29 10
LEYLAND
ATUL AUTO 0.23 0.39 0.45 0.85 0.58 0.45 0.12 0.80 0.28 0.27 0.44 0.24 11

BAJAJ AUTO 1.80 1.32 1.94 1.02 1.65 0.99 1.75 1.63 2.20 1.37 1.57 0.39 8

EICHER 0.58 0.66 0.96 1.18 1.23 2.07 1.66 1.42 1.34 0.67 1.18 0.48 6
MOTORS
ESCORT 0.06 0.12 0.03 0.03 0.20 0.01 0.14 0.19 0.29 -0.14 0.09 0.12 18

FORCE 0.20 0.18 -0.26 0.10 0.14 0.26 0.26 0.05 0.19 0.20 0.13 0.15 13
MOTORS
HERO 1.77 1.48 1.55 0.90 1.38 1.04 1.88 1.97 2.06 0.54 1.46 0.50 5
MOTOCORP
HINDUSTAN 0.07 -0.68 -0.79 -0.92 -0.62 1.13 0.31 0.26 -1.39 -0.65 -0.33 0.75 3
MOTORS
MAHARASTRA -1.26 -1.50 -6.29 -1.03 -0.77 -2.31 -1.11 -1.70 0.05 0.04 -1.59 1.80 2
SCO.
KINETIC ENG. -0.19 -0.13 -0.15 -0.08 0.13 -0.12 -0.15 0.03 0.09 0.01 -0.06 0.11 20

MAHINDRA 0.63 0.68 0.54 0.71 0.52 0.40 0.60 0.41 0.64 0.39 0.55 0.12 19
&MAH.
MAJESTIC -0.05 0.12 0.10 0.09 -0.16 -0.09 -0.01 0.08 0.21 2.01 0.23 0.64 4
AUTO
MARUTI 0.56 0.44 0.30 0.37 0.37 0.45 0.63 0.71 0.76 0.39 0.50 0.16 12
SUZUKI
PREMIER 0.17 0.04 0.09 -0.08 0.00 0.33 0.02 -0.02 0.13 -0.11 0.06 0.13 15

SCOOTERS -1.39 -1.73 0.81 5.40 -0.34 -1.39 -0.92 -0.54 -0.04 -0.41 -0.06 2.06 1
IND.
SML 0.91 0.27 0.52 -0.17 1.07 0.42 -0.06 0.41 0.41 -0.08 0.37 0.41 7

SUNDARAM 0.35 0.13 0.08 0.18 0.22 0.20 0.28 0.32 -0.09 0.23 0.19 0.13 17
CLY.
TATA 0.39 0.09 0.19 0.11 0.11 -0.12 0.07 0.03 0.10 0.15 0.11 0.13 16
MOTORS
TVS 0.35 0.22 0.41 0.40 0.45 0.06 0.54 0.35 0.52 0.39 0.37 0.14 14

VSTILLERS 0.30 0.96 -0.15 0.55 1.05 0.19 0.66 0.65 0.16 0.18 0.46 0.38 9

TREND 0.29 0.16 0.03 0.49 0.37 0.22 0.35 0.37 0.45 0.27 0.30 0.14

127
Operating cash of Force Motors as compared to its fixed assets 0.13. The highest value, in
proportion to its total values, by Force Motors was maintained in 2015-16 which was 0.26 and on
the lower side it was recorded at -0.26 in the year 2011-12. Operating cash of Hero MotoCorp
as compared to its fixed assets 1.46. The highest value, in proportion to its total values, by Hero
MotoCorp was maintained in 2017-16 which was 1.97 and on the lower side it was recorded at
0.54 in the year 2018-19. Operating cash of Hindustan Motors as compared to its fixed assets
-0.33. The highest value, in proportion to its total values, by Hindustan Motors was maintained in
2014-15 which was 1.13 and on the lower side it was recorded at –1.39 in the year 2017-18.
Operating cash of Maharashtra Scow. as compared to its fixed assets -1.59. The highest value,
in proportion to its total values, by Maharashtra Sco. was maintained in 2017-18 which was 0.05
and on the lower side it was recorded at -6.29 in the year 2011-12. Operating cash of Kinetic
Eng. as compared to its fixed assets -0.06. The highest value, in proportion to its total cash
flow, by Kinetic Eng. was maintained in 2013-14 which was 0.13 and on -the lower side it was
recorded at -0.19 in the year 2009-10.

4.12.2 CASH FLOW FROM OPERATING ACTIVITY TO FIXED ASSETS

Chart Title
2.5

1.5

0.5

-0.5

-1

-1.5

-2

MEAN SD

128
Operating cash of Mahindra & Mahindra as compared to its fixed assets 0.55. The highest
value, in proportion to its total values, by Mahindra & Mahindra was maintained in 2010-11 which
was 0.68 and on the lower side it was recorded at 0.39 in the year 2018-19. Operating cash of
Majestic Auto as compared to its fixed assets 0.23. The highest value, in proportion to its total
values, by Majestic Auto was maintained in 2018-19 which was 2.01 and on the lower side it was
recorded at -0.16 in the year 2013-14. Operating cash of Maruti Suzuki as compared to its fixed
assets 0.50. The highest value, in proportion to its total values, by Maruti Suzuki was maintained
in 2017-18 which was 0.76 and on the lower side it was recorded at 0.30 in the year 2011-12.
Operating cash of Premier as compared to its fixed assets 0.06. The highest value, in proportion
to its total values, by Premier was maintained in 2013-14 which was 0.33 and on the lower side it
was recorded at -0.11 in the year 2018-19. Operating cash of Scooters Ind. as compared to its
fixed assets -0.06. The highest value, in proportion to its total values, by Scooters Ind. was
maintained in 2012-13 which was 5.40 and on the lower side it was recorded at -1.73 in the year
2010-11. Operating cash of SML as compared to its fixed assets 0.37. The highest value, in
proportion to its total values, by SML was maintained in 2013-14 which was 1.07 and on the lower
side it was recorded at -0.17 in the year 2012-13. Operating cash of Sandarac Cly. as compared
to its fixed assets 019. The highest value, in proportion to its total values, by Sundaram Cly as
maintained in 2009-10 which was 0.35 and on the lower side it was recorded at -0.09 in the year
2017-18. Operating cash of TATA Motors as compared to its fixed assets 0.11. The highest
value, in proportion to its total values, by TATA Motors was maintained in 2009-10 which was
0.39 and on the lower side it was recorded at -0.12 in the year 2014-15. Operating cash of TVS
as compared to its fixed assets 0.37. The highest value, in proportion to its total values, by TVS
was maintained in 2015-16 which was 0.54 and on the lower side it was recorded at 0.22 in the
year 2010-11. Operating cash of VSTillers as compared to its fixed assets 0.46. The highest
value, in proportion to its total values, by VSTillers was maintained in 2010-11 which was 0.96
and on the lower side it was recorded at -0.15 in the year 2011-12.

129
4.13 CASH FLOW FROM OPERATING ACTIVITY TO TOTAL REVENUE
Cash flow from operating activity to total revenue calculated as operating cash divided by total
revenue.
Average value maintained by the industry is 0.08 of the total values. Maximum cash size
was 0.23 in the year 2015-16 and the least cash size was 0.0 in the year 2018-19. Average
operating cash of Ashok Leyland as compared to its total revenue 0.09. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2017-18 which was 0 . 2 0 and
on the lower side it was recorded at -0.01 in the year 2018-19. Operating cash of Atul Auto as
compared to its total revenue 0.07. The highest value, in proportion to its total values, by Atul Auto
was maintained in 2016-17 which was 0.15 and on the lower side it was recorded at 0.05 in the
year 2017-18 and 2018-19. Operating cash of Bajaj Auto as compared to its total revenue 0.14.
The highest value, in proportion to its total values, by Bajaj Auto was maintained in 2009-10 which
was 0.23 and on the lower side it was recorded at 0.08 in the year 2018-19. Operating cash of
Eicher Motors as compared to its total revenue 0.20. The highest value, in proportion to its total
values, by Eicher Motors was maintained in 2014-15 which was 0.31 and on the lower side it was
recorded at 0.09 in the year 2009-10. Operating cash of Escort as compared to its total revenue
0.03. The highest value, in proportion to its total values, by Escort was maintained in 2017-18
which was 0.09 and on the lower side it was recorded at -0.04 in the year 2018-19. Operating cash
of Force Motors as compared to its total revenue 0.05. The highest value, in proportion to its
total values, by Force Motors was maintained in 2014-15 which was 0.09 and on the lower side it
was recorded at -0.07 in the year 2011-12. Operating cash of Hero MotoCorp as compared to
its total revenue 0.13. The highest value, in proportion to its total values, by Hero MotoCorp was
maintained in 2009-10 which was 0.22 and on the lower side it was recorded at 0.03 in the year
2018-19. Operating cash of Hindustan Motors as compared to its total revenue 0.37. The highest
value, in proportion to its total values, by Hindustan Motors was maintained in 2015-16 which was
3.59 and on the lower side it was recorded at –3.56 in the year 2017-18. Operating cash of
Maharashtra Scow. as compared to its total revenue -0.22. The highest value, in proportion to
its total values, by Maharashtra Sco. was maintained in 2017-18 and 2018-19 which was 0.01 and
on the lower side it was recorded at -0.64 in the year 2011-12.

130
TABLE: 4.13.1 CASH FLOW FROM OPEARTING ACTIVITY TO TOTAL REVENUE
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.14 0.05 0.08 0.05 0.05 0.12 0.08 0.10 0.20 -0.01 0.09 0.06 11
LEYLAND
ATUL AUTO 0.07 0.08 0.06 0.11 0.07 0.07 0.02 0.15 0.05 0.05 0.07 0.04 17

BAJAJ AUTO 0.23 0.12 0.15 0.10 0.17 0.10 0.15 0.14 0.16 0.08 0.14 0.04 15

EICHER 0.09 0.11 0.17 0.21 0.22 0.31 0.20 0.22 0.26 0.16 0.20 0.07 8
MOTORS
ESCORT 0.03 0.06 0.01 0.01 0.05 0.00 0.06 0.07 0.09 -0.04 0.03 0.04 16

FORCE 0.06 0.05 -0.07 0.04 0.06 0.09 0.08 0.02 0.07 0.08 0.05 0.05 14
MOTORS
HERO 0.22 0.13 0.12 0.09 0.14 0.10 0.17 0.17 0.15 0.03 0.13 0.05 13
MOTOCORP
HINDUSTAN 0.02 -0.11 -0.20 -0.15 -0.13 1.58 3.59 3.00 -3.56 -0.39 0.37 2.00 1
MOTORS
MAHARASTRA -0.47 -0.30 -0.64 -0.13 -0.10 -0.14 -0.07 -0.41 0.01 0.01 -0.22 0.22 4
SCO.
KINETIC ENG. -0.25 -0.13 -0.17 -0.09 0.22 -0.20 -0.23 0.04 0.07 0.01 -0.07 0.15 6

MAHINDRA 0.12 0.13 0.08 0.10 0.09 0.08 0.12 0.08 0.14 0.09 0.10 0.02 20
&MAH.
MAJESTIC -0.02 0.11 0.08 0.10 -0.23 -0.12 -0.01 0.07 0.87 0.53 0.14 0.32 3
AUTO
MARUTI 0.10 0.08 0.07 0.10 0.11 0.13 0.13 0.13 0.14 0.07 0.11 0.03 18
SUZUKI
PREMIER 0.26 0.13 0.30 -0.09 -0.01 0.99 0.08 -0.20 1.71 -0.86 0.23 0.69 2

SCOOTERS -0.17 -0.18 0.06 0.43 -0.03 -0.11 -0.08 -0.06 -0.02 -0.14 -0.03 0.18 5
IND.
SML 0.15 0.04 0.07 -0.03 0.18 0.06 -0.01 0.09 0.08 -0.03 0.06 0.07 7

SUNDARAM 0.19 0.05 0.03 0.07 0.07 0.06 0.08 0.11 -0.03 0.09 0.07 0.06 12
CLY.
TATA 0.17 0.03 0.07 0.05 0.06 -0.07 0.06 0.03 0.07 0.09 0.06 0.06 10
MOTORS
TVS 0.08 0.03 0.06 0.06 0.07 0.01 0.08 0.05 0.08 0.06 0.06 0.02 19

VSTILLERS 0.04 0.12 -0.02 0.10 0.21 0.05 0.13 0.13 0.04 0.07 0.09 0.06 9

TREND 0.05 0.03 0.02 0.06 0.06 0.16 0.23 0.2 0.03 0.0 0.08 0.08

131
Operating cash of Kinetic Eng. as compared to its total revenue -0.06. The highest value,
in proportion to its total values, by Kinetic Eng. was maintained in 2013-14 which was 0.22 and
on -the lower side it was recorded at -0.25 in the year 2009-10. Operating cash of Mahindra &
Mahindra as compared to its total revenue 0.10. The highest value, in proportion to its total
values, by Mahindra & Mahindra was maintained in 2017-18 which was 0.14 and on the lower
side it was recorded at 0.08 in the year 2011-12 and 2014-15. Operating cash of Majestic Auto
as compared to its total revenue 0.14. The highest value, in proportion to its total values, by
Majestic Auto was maintained in 2017-18 which was 0.87 and on the lower side it was recorded
at -0.23 in the year 2013-14. Operating cash of Maruti Suzuki as compared to its total revenue
0.11. The highest value, in proportion to its total values, by Maruti Suzuki was maintained in 2017-
18 which was 0.14 and on the lower side it was recorded at 0.07 in the year 2011-12.

4.13.1 CASH FLOW FROM OPERATING ACTIVITY TO TOTAL REVENUE

Chart Title
2.5

1.5

0.5

-0.5

-1

-1.5

-2

MEAN SD

Operating cash of Premier as compared to its total revenue 0.23. The highest value, in proportion
to its total values, by Premier was maintained in 2017-18 which was 1.71 and on the lower side it
was recorded at -0.86 in the year 2018-19. Operating cash of Scooters Ind. as compared to its
total revenue -0.03. The highest value, in proportion to its total values, by Scooters Ind. was

132
maintained in 2012-13 which was 0.43 and on the lower side it was recorded at -0.18 in the year
2010-11. Operating cash of SML as compared to its total revenue 0.06. The highest value, in
proportion to its total values, by SML was maintained in 2013-14 which was 0.18 and on the lower
side it was recorded at -0.03 in the year 2012-13. Operating cash of Sundaram Cly. as compared
to its total revenue 0.07. The highest value, in proportion to its total values, by Sundaram Cly as
maintained in 2009-10 which was 0.19 and on the lower side it was recorded at -0.03 in the year
2017-18. Operating cash of TATA Motors as compared to its total revenue 0.06. The highest
value, in proportion to its total values, by TATA Motors was maintained in 2009-10 which was
0.17 and on the lower side it was recorded at -0.07 in the year 2014-15. Operating cash of TVS
as compared to its total revenue 0.06. The highest value, in proportion to its total values, by TVS
was maintained in 2009-10 and 2015-16 which was 0.08 and on the lower side it was recorded at
0.01 in the year 2014-15. Operating cash of VSTillers as compared to its total revenue 0.09. The
highest value, in proportion to its total values, by VSTillers was maintained in 2013-14 which was
0.21 and on the lower side it was recorded at -0.02 in the year 2011-12.

4.14.1 CASH FLOW FROM OPERATING ACTIVITY TO NET INCOME

Cash flow from operating activity to net income calculated as cash from operations divided by net
income.
Average value maintained by the industry is 1.64 of the total values. Maximum cash size
was 7.02 in the year 2015-16 and the least cash size was 0.47 in the year 2018-19. Average
operating cash of Ashok Leyland as compared to its net income 3.80. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2013-14 which was 1 8 . 9 4
and on the lower side it was recorded at -0.19 in the year 2018-19. Operating cash of Atul Auto
as compared to its net income 0.91. The highest value, in proportion to its total values, by Atul
Auto was maintained in 2016-17 which was 1.94 and on the lower side it was recorded at 0.23 in
the year 2015-16. Operating cash of Bajaj Auto as compared to its net income 0.92. The highest
value, in proportion to its total values, by Bajaj Auto was maintained in 2009-10 which was 1.61
and on the lower side it was recorded at 0.52 in the year 2018-19. Operating cash of Eicher
Motors as compared to its net income 1.03. The highest value, in proportion to its total values,
by Eicher Motors was maintained in 2014-15 which was 1.61 and on the lower side it was recorded

133
TABLE: 4.14.1 CASH FLOW FROM OPEARTING ACTIVITY TO NET INCOME
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 1.89 0.79 1.97 1.68 18.94 5.28 2.32 1.75 3.55 -0.19 3.80 5.52 2
LEYLAND
ATUL AUTO 0.45 0.62 1.21 1.57 1.03 0.88 0.23 1.94 0.56 0.65 0.91 0.53 15

BAJAJ AUTO 1.61 0.61 0.99 0.70 1.09 0.76 1.00 0.85 1.08 0.52 0.92 0.31 19

EICHER 0.14 0.22 1.31 1.32 1.23 1.61 1.13 1.13 1.46 0.79 1.03 0.50 16
MOTORS
ESCORT 0.03 0.06 0.01 0.01 0.05 0.00 0.07 0.07 0.09 -0.04 0.04 0.04 20

FORCE 0.42 10.41 -0.17 5.83 1.55 2.23 1.47 0.34 1.75 2.05 2.59 3.21 6
MOTORS
HERO 1.58 0.69 0.79 0.62 0.91 0.80 1.07 1.02 1.01 0.21 0.87 0.35 18
MOTOCORP
HINDUSTAN -0.08 1.85 3.34 1.53 7.83 -0.79 -0.27 -0.34 -0.60 -0.53 1.19 2.70 7
MOTORS
MAHARASTRA -1.36 -0.56 6.99 -0.15 -0.12 -0.18 -0.08 -0.96 0.00 0.00 0.36 2.37 8
SCO.
KINETIC ENG. 0.78 0.34 2.17 0.58 -0.22 -1.19 12.38 -0.22 -1.02 -0.10 1.35 3.99 4

MAHINDRA 0.51 0.48 0.95 1.24 0.99 0.97 1.69 1.00 1.62 1.02 1.05 0.40 17
&MAH.
MAJESTIC -0.09 0.40 0.84 -2.73 -0.45 -0.59 -0.15 -1.27 0.71 -1.43 -0.48 1.10 11
AUTO
MARUTI 0.30 0.26 1.57 1.83 1.76 1.73 1.58 1.36 1.46 0.90 1.28 0.59 14
SUZUKI
PREMIER 2.81 1.37 3.50 -0.55 -0.05 -3.66 -0.32 0.07 -0.45 0.14 0.29 1.98 9

SCOOTERS 0.28 0.29 -0.67 -13.97 -0.37 -1.61 -2.13 0.60 0.05 1.97 -1.56 4.51 3
IND.
SML 2.80 0.52 1.78 -0.70 9.31 1.86 -0.23 1.88 1.91 -4.00 1.51 3.37 5

SUNDARAM 4.47 0.79 0.46 2.11 1.69 1.20 0.91 0.97 -0.73 1.75 1.36 1.35 10
CLY.
TATA 1.63 0.40 2.94 7.48 7.36 0.54 116.66 -0.58 -4.17 3.15 13.54 36.40 1
MOTORS
TVS 3.85 1.04 1.77 3.60 2.00 0.24 1.95 1.22 1.97 1.65 1.93 1.09 12

VSTILLERS 0.61 1.71 -0.19 1.03 1.58 0.37 1.15 1.25 0.30 0.95 0.88 0.60 13

TREND 1.13 1.11 1.58 0.65 2.81 0.52 7.02 0.6 0.53 0.47 1.64 2.02

134
at 0.14 in the year 2009-10. Operating cash of Escort as compared to its net income 0.04. The
highest value, in proportion to its total values, by Escort was maintained in 2017-18 which was
0.09 and on the lower side it was recorded at -0.04 in the year 2018-19. Operating cash of Force
Motors as compared to its net income 2.59. The highest value, in proportion to its total values,
by Force Motors was maintained in 2012-13 which was 5.83 and on the lower side it was recorded
at -0.17 in the year 2011-12. Operating cash of Hero MotoCorp as compared to its net income
0.87. The highest value, in proportion to its total values, by Hero MotoCorp was maintained in
2009-10 which was 1.58 and on the lower side it was recorded at 0.21 in the year 2018-19.
Operating cash of Hindustan Motors as compared to its net income 1.19. The highest value, in
proportion to its total values, by Hindustan Motors was maintained in 2013-14 which was 7.83
and on the lower side it was recorded at –0.79 in the year 2014-15. Operating cash of
Maharashtra Scow. as compared to its net income 0.36. The highest value, in proportion to its
total values, by Maharashtra Sco. was maintained in 2011-12 which was 6.99 and on the lower
side it was recorded at -1.36 in the year 2009-10. Operating cash of Kinetic Eng. as compared
to its net income 1.35.

4.14.1 CASH FLOW FROM OPERATING ACTIVITY TO NET INCOME

Chart Title
2.5

1.5

0.5

-0.5

-1

-1.5

-2

MEAN SD

135
The highest value, in proportion to its total values, by Kinetic Eng. was maintained in 2015-16
which was 12.38 and on -the lower side it was recorded at -1.02 in the year 2017-18. Operating
cash of Mahindra & Mahindra as compared to its net income 1.05. The highest value, in
proportion to its total values, by Mahindra & Mahindra was maintained in 2015-16 which was
1.69 and on the lower side it was recorded at 0.48 in the year 2010-11. Operating cash of Majestic
Auto as compared to its net income -0.48. The highest value, in proportion to its total values, by
Majestic Auto was maintained in 2011-12 which was 0.84 and on the lower side it was recorded
at -2.73 in the year 2012-13. Operating cash of Maruti Suzuki as compared to its net income
1.28. The highest value, in proportion to its total values, by Maruti Suzuki was maintained in 2012-
13 which was 1.83 and on the lower side it was recorded at 0.26 in the year 2010-11. Operating
cash of Premier as compared to its net income 0.29. The highest value, in proportion to its total
values, by Premier was maintained in 2009-10 which was 2.81 and on the lower side it was
recorded at -3.66 in the year 2014-15. Operating cash of Scooters Ind. as compared to its net
income -1.56. The highest value, in proportion to its total values, by Scooters Ind. was maintained
in 2018-19 which was 1.97 and on the lower side it was recorded at -13.97 in the year 2012-13.
Operating cash of SML as compared to its net income 1.51. The highest value, in proportion to
its total values, by SML was maintained in 2013-14 which was 9.31 and on the lower side it was
recorded at -4 in the year 2018-19. Operating cash of Sundaram Cly. as compared to its net
income 1.36. The highest value, in proportion to its total values, by Sundaram Cly as maintained
in 2009-10 which was 4.47 and on the lower side it was recorded at -0.73 in the year 2017-18.
Operating cash of TATA Motors as compared to its net income 13.54. The highest value, in
proportion to its total values, by TATA Motors was maintained in 2015-16 which was 116.66 and
on the lower side it was recorded at -4.17 in the year 2017-18. Operating cash of TVS as
compared to its net income 1.93. The highest value, in proportion to its total values, by TVS was
maintained in 2009-10 which was 3.85 and on the lower side it was recorded at 1.04 in the year
2010-11. Operating cash of VSTillers as compared to its net income 0.88. The highest value, in
proportion to its total values, by VSTillers was maintained in 2013-14 which was 1.58 and on the
lower side it was recorded at -0.19 in the year 2011-12.

136
4.15 RETURN ON EQUITY
Return on equity is a measure of financial performance calculated by dividing net income by total
assets. Because total assets are equal to a company’s assets minus its debt, ROE is considered the
return on net assets.
Average ROE maintained by the industry is 0.33 of the total values. Maximum ROE was
0.77 in the year 2017-18 and the least ROE was 0.10 in the year 2018-19. Average net income of
Ashok Leyland as compared to its total assets 0.14. The highest value, in proportion to its total
values, by Ashok Leyland was maintained in 2018-19 which was 0 . 2 3 and on the lower side it
was recorded at 0.01 in the year 2013-14. Net income of Atul Auto as compared to its net income
0.35. The highest value, in proportion to its total values, by Atul Auto was maintained in 2010-11
which was 0.67 and on the lower side it was recorded at 0.21 in the year 2016-17 and 2017-18.
Net income of Bajaj Auto as compared to its net income 0.37. The highest value, in proportion
to its total values, by Bajaj Auto was maintained in 2010-11 which was 0.68 and on the lower side
it was recorded at 0.21 in the year 2017-18. Net income of Eicher Motors as compared to its
net income 0.47. The highest value, in proportion to its total values, by Eicher Motors was
maintained in 2009-10 which was 0.82 and on the lower side it was recorded at 0.29 in the year
2018-19. Net income of Escort as compared to its net income 2.18. The highest value, in
proportion to its total values, by Escort was maintained in 2013-14 which was 3.44 and on the
lower side it was recorded at 1.58 in the year 2009-10. Net income of Force Motors as compared
to its net income 0.18. The highest value, in proportion to its total values, by Force Motors was
maintained in 2011-12 which was 0.72 and on the lower side it was recorded at 0.01 in the year
2012-13. Net income of Hero MotoCorp as compared to its net income 0.37. The highest value,
in proportion to its total values, by Hero MotoCorp was maintained in 2010-11 which was 0.68
and on the lower side it was recorded at 0.21 in the year 2017-18. Net income of Hindustan
Motors as compared to its net income -0.07. The highest value, in proportion to its total values,
by Hindustan Motors was maintained in 2012-13 which was 2.25 and on the lower side it was
recorded at –1.04 in the year 2011-12. Net income of Maharashtra Scow. as compared to its
net income 0.16. The highest value, in proportion to its total values, by Maharashtra Sco. was
maintained in 2015-16 which was 0.32 and on the lower side it was recorded at -0.03 in the year
2011-12. Net income of Kinetic Eng. as compared to its net income 0.18.

137
TABLE: 4.15.1 RETURN ON EQUITY
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.14 0.17 0.13 0.10 0.01 0.07 0.13 0.20 0.21 0.23 0.14 0.07 18
LEYLAND
ATUL AUTO 0.64 0.67 0.28 0.35 0.32 0.34 0.31 0.21 0.21 0.21 0.35 0.17 11

BAJAJ AUTO 0.58 0.68 0.50 0.39 0.34 0.26 0.30 0.23 0.21 0.22 0.37 0.16 12

EICHER 0.82 0.71 0.23 0.34 0.45 0.57 0.56 0.40 0.32 0.29 0.47 0.19 9
MOTORS
ESCORT 1.58 1.78 2.41 2.41 3.44 2.22 1.86 2.09 1.97 2.05 2.18 0.51 5

FORCE 0.49 0.02 0.72 0.01 0.06 0.08 0.12 0.11 0.08 0.08 0.18 0.23 8
MOTORS
HERO 0.58 0.68 0.50 0.39 0.34 0.26 0.30 0.23 0.21 0.22 0.37 0.16 12
MOTOCORP
HINDUSTAN -0.77 -0.54 -1.04 2.25 0.09 0.68 0.34 0.17 -0.99 -0.87 -0.07 1.02 3
MOTORS
MAHARASTRA 0.04 0.10 -0.03 0.22 0.20 0.22 0.32 0.04 0.21 0.28 0.16 0.12 15
SCO.
KINETIC ENG. -0.26 -0.40 -0.14 -0.19 3.56 0.24 -0.03 -0.37 -0.23 -0.38 0.18 1.20 2

MAHINDRA 0.59 0.60 0.24 0.23 0.22 0.17 0.14 0.15 0.14 0.14 0.26 0.18 10
&MAH.
MAJESTIC 0.68 0.72 0.24 -0.08 0.45 0.16 0.05 -0.06 0.05 -0.09 0.21 0.31 6
AUTO
MARUTI 0.85 0.86 0.11 0.13 0.13 0.16 0.18 0.21 0.19 0.16 0.30 0.30 7
SUZUKI
PREMIER 0.08 0.03 0.03 0.17 0.05 -0.10 -0.06 -0.35 12.48 -1.05 1.13 4.00 1

SCOOTERS -1.58 -1.90 0.25 -0.16 0.16 0.12 0.06 -0.12 -0.27 -0.07 -0.35 0.75 4
IND.
SML 0.20 0.31 0.17 0.14 0.06 0.12 0.15 0.16 0.16 0.02 0.15 0.08 16

SUNDARAM 0.10 0.20 0.26 0.12 0.16 0.19 0.28 0.28 0.12 0.14 0.19 0.07 17
CLY.
TATA 0.26 0.19 0.06 0.02 0.02 -0.32 0.00 -0.11 -0.05 0.09 0.02 0.16 14
MOTORS
TVS 0.10 0.19 0.21 0.09 0.18 0.21 0.25 0.25 0.23 0.20 0.19 0.06 19

VSTILLERS 0.20 0.18 0.24 0.20 0.27 0.19 0.18 0.15 0.19 0.08 0.19 0.05 20

TREND 0.27 0.26 0.27 0.36 0.53 0.29 0.27 0.19 0.77 0.1 0.33 0.19

138
The highest value, in proportion to its total values, by Kinetic Eng. Was maintained in 2013-14
which was 3.56 and on -the lower side it was recorded at -0.40 in the year 2010-11. Net income
of Mahindra & Mahindra as compared to its net income 0.26. The highest value, in proportion
to its total values, by Mahindra & Mahindra was maintained in 2010-11 which was 0.60 and on
the lower side it was recorded at 0.14 in the year 2017-18 and 2018-19.

4.15.2 RETURN ON EQUITY

Chart Title
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
-0.5
-1

MEAN SD

Net income of Majestic Auto as compared to its net income 0.21. The highest value, in
proportion to its total values, by Majestic Auto was maintained in 2010-11 which was 0.72 and on
the lower side it was recorded at -0.06 in the year 2016-17. Net income of Maruti Suzuki as
compared to its net income 0.30. The highest value, in proportion to its total values, by Maruti
Suzuki was maintained in 2010-11 which was 0.86 and on the lower side it was recorded at 0.11
in the year 2011-12. Net income of Premier as compared to its net income 1.13. The highest
value, in proportion to its total values, by Premier was maintained in 2017-18 which was 12.48
and on the lower side it was recorded at -1.05 in the year 2018-19. Net income of Scooters Ind.
as compared to its net income -0.35. The highest value, in proportion to its total values, by Scooters
Ind. was maintained in 2011-12 which was 0.25 and on the lower side it was recorded at -1.90 in

139
the year 2010-11. Net income of SML as compared to its net income 0.15. The highest value, in
proportion to its total values, by SML was maintained in 2010-11 which was 0.31 and on the lower
side it was recorded at 0.02 in the year 2018-19. Net income of Sundaram Cly. as compared to
its net income 0.19. The highest value, in proportion to its total values, by Sundaram Cly as
maintained in 2015-16 and 2016-17 which was 0.28 and on the lower side it was recorded at 0.10
in the year 2009-10. Net income of TATA Motors as compared to its net income 0.02. The
highest value, in proportion to its total values, by TATA Motors was maintained in 2009-10 which
was 0.26 and on the lower side it was recorded at -0.32 in the year 2014-15. Net income of TVS
as compared to its net income 0.19. The highest value, in proportion to its total values, by TVS
was maintained in 2015-16 and 2016-17 which was 0.25 and on the lower side it was recorded at
0.10 in the year 2009-10. Net income of VSTillers as compared to its net income 0.19. The
highest value, in proportion to its total values by VSTillers was maintained in 2013-14 which was
0.27 and on the lower side it was recorded at 0.08 in the year 2018-19.

4.16 RETURN ON ASSETS

Return on assets calculated as net income divided by total assets. It is an indicator of how profitable
a company is relative to its total assets. ROA gives an idea as to how efficient a company’s
management is at using its assets to generate earnings.
Average ROA maintained by the industry is 0.14 of the total values. Maximum ROA was
0.18 in the year 2013-14 & 2017-18 and the least ROA was 0.10 in the year 2016-17. Average
net income of Ashok Leyland as compared to its total assets 0.06. The highest value, in
proportion to its total values, by Ashok Leyland was maintained in 2018-19 which was 0 . 1 1 and
on the lower side it was recorded at 0.00 in the year 2013-14. Net income of Atul Auto as
compared to its total assets 0.21. The highest value, in proportion to its total values, by Atul Auto
was maintained in 2010-11 which was 0.36 and on the lower side it was recorded at 0.15 in the
year 2016-17 and 2017-18. Net income of Bajaj Auto as compared to its total assets 0.22. The
highest value, in proportion to its total values, by Bajaj Auto was maintained in 2010-11 which
was 0.36 and on the lower side it was recorded at 0.17 in the year 2017-18. Net income of Eicher
Motors as compared to its total assets 0.31. The highest value, in proportion to its total values,
by Eicher Motors was maintained in 2009-10 which was 0.56 and on the lower side it was recorded

140
at 0.19 in the year 2012-13. Net income of Escort as compared to its total assets 1.19. The highest
value, in proportion to its total values, by Escort was maintained in 2013-14 which was 1.80 and
on the lower side it was recorded at 0.95 in the year 2009-10. Net income of Force Motors as
compared to its total assets 0.11. The highest value, in proportion to its total values, by Force
Motors was maintained in 2011-12 which was 0.50 and on the lower side it was recorded at 0.01
in the year 2012-13. Net income of Hero MotoCorp as compared to its total assets 0.22. The
highest value, in proportion to its total values, by Hero MotoCorp was maintained in 2010-11
which was 0.36 and on the lower side it was recorded at 0.17 in the year 2017-18. Net income of
Hindustan Motors as compared to its total assets -0.06. The highest value, in proportion to its
total values, by Hindustan Motors was maintained in 2017-18 which was 1.11 and on the lower
side it was recorded at –0.62 in the year 2015-16. Net income of Maharashtra Scow. as
compared to its total assets 0.14. The highest value, in proportion to its total values, by Maharashtra
Sco. was maintained in 2015-16 which was 0.30 and on the lower side it was recorded at -0.03 in
the year 2011-12. Net income of Kinetic Eng. as compared to its total assets -0.07. The
highest value, in proportion to its total values, by Kinetic Eng. Was maintained in 2014-15 which
was 0.04 and on -the lower side it was recorded at -0.23 in the year 2013-14. Net income of
Mahindra & Mahindra as compared to its total assets 0.14. The highest value, in proportion to
its total values, by Mahindra & Mahindra was maintained in 2010-11 which was 0.31 and on the
lower side it was recorded at 0.09 in the year 2017-18 and 2018-19. Net income of Majestic
Auto as compared to its total assets 0.08. The highest value, in proportion to its total values, by
Majestic Auto was maintained in 2009-10 which was 0.29 and on the lower side it was recorded
at -0.08 in the year 2018-19. Net income of Maruti Suzuki as compared to its total assets 0.22.
The highest value, in proportion to its total values, by Maruti Suzuki was maintained in 2010-11
which was 0.64 and on the lower side it was recorded at 0.07 in the year 2011-12. Net income of
Premier as compared to its total assets -0.04. The highest value, in proportion to its total values,
by Premier was maintained in 2012-13 which was 0.08 and on the lower side it was recorded at –
0.26 in the year 2018-19. Net income of Scooters Ind. as compared to its total assets -0.21. The
highest value, in proportion to its total values, by Scooters Ind. was maintained in 2013-14 which
was 0.09 and on the lower side it was recorded at -1.94 in the year 2010-11. Net income of SML
as compared to its total assets 0.07.

141
TABLE: 4.16.1 RETURN ON ASSETS
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.06 0.07 0.05 0.03 0.00 0.03 0.05 0.09 0.09 0.11 0.06 0.03 16
LEYLAND
ATUL AUTO 0.28 0.36 0.16 0.21 0.21 0.23 0.21 0.15 0.15 0.15 0.21 0.07 12

BAJAJ AUTO 0.19 0.36 0.27 0.24 0.22 0.18 0.23 0.19 0.17 0.17 0.22 0.06 13

EICHER 0.56 0.49 0.14 0.19 0.25 0.36 0.36 0.28 0.22 0.22 0.31 0.13 6
MOTORS
ESCORT 0.95 1.03 1.14 1.14 1.80 1.18 1.04 1.19 1.17 1.24 1.19 0.23 3

FORCE 0.18 0.01 0.50 0.01 0.04 0.05 0.08 0.07 0.06 0.05 0.11 0.15 5
MOTORS
HERO 0.19 0.36 0.27 0.24 0.22 0.18 0.23 0.19 0.17 0.17 0.22 0.06 13
MOTOCORP
HINDUSTAN -0.35 -0.11 -0.08 -0.27 -0.02 -0.59 -0.62 -0.49 1.11 0.87 -0.06 0.59 1
MOTORS
MAHARASTRA 0.04 0.09 -0.03 0.17 0.16 0.17 0.30 0.04 0.21 0.27 0.14 0.11 8
SCO.
KINETIC ENG. -0.10 -0.16 -0.03 -0.04 -0.23 0.04 -0.01 -0.09 -0.05 -0.05 -0.07 0.08 11

MAHINDRA 0.28 0.31 0.12 0.12 0.12 0.10 0.09 0.10 0.09 0.09 0.14 0.08 10
&MAH.
MAJESTIC 0.29 0.21 0.09 -0.02 0.23 0.09 0.02 -0.03 0.04 -0.08 0.08 0.12 7
AUTO
MARUTI 0.61 0.64 0.07 0.09 0.09 0.11 0.13 0.15 0.14 0.12 0.22 0.22 4
SUZUKI
PREMIER 0.03 0.02 0.02 0.08 0.02 -0.05 -0.03 -0.11 -0.16 -0.26 -0.04 0.10 9

SCOOTERS -0.80 -0.94 -0.20 -0.05 0.09 0.06 0.03 -0.07 -0.17 -0.04 -0.21 0.36 2
IND.
SML 0.08 0.12 0.07 0.06 0.03 0.05 0.07 0.08 0.08 0.01 0.07 0.03 19

SUNDARAM 0.04 0.07 0.08 0.04 0.06 0.07 0.12 0.14 0.05 0.06 0.07 0.03 17
CLY.
TATA 0.08 0.07 0.02 0.01 0.01 -0.09 0.00 -0.04 -0.02 0.03 0.01 0.05 15
MOTORS
TVS 0.03 0.07 0.08 0.04 0.07 0.08 0.10 0.10 0.09 0.08 0.07 0.02 20

VSTILLERS 0.13 0.12 0.16 0.14 0.18 0.15 0.14 0.12 0.14 0.06 0.13 0.03 18

TREND 0.14 0.16 0.15 0.12 0.18 0.12 0.13 0.1 0.18 0.16 0.14 0.03

142
4.16.2 RETURN ON ASSETS

Chart Title
1.4
1.2
1
0.8
0.6
0.4
0.2
0
-0.2
-0.4

MEAN SD

The highest value, in proportion to its total values, by SML was maintained in 2010-11 which was
0.12 and on the lower side it was recorded at 0.01 in the year 2018-19. Net income of Sundaram
Cly. as compared to its total assets 0.07. The highest value, in proportion to its total values, by
Sundaram Cly as maintained in 2016-17 which was 0.14 and on the lower side it was recorded at
0.04 in the year 2009-10 and 2012-13. Net income of TATA Motors as compared to its total
assets 0.01. The highest value, in proportion to its total values, by TATA Motors was maintained
in 2009-10 which was 0.08 and on the lower side it was recorded at -0.09 in the year 2014-15.
Net income of TVS as compared to its total assets 0.07. The highest value, in proportion to its
total values, by TVS was maintained in 2015-16 and 2016-17 which was 0.10 and on the lower
side it was recorded at 0.03 in the year 2009-10. Net income of VSTillers as compared to its
total assets 0.13. The highest value, in proportion to its total values by VSTillers was maintained
in 2013-14 which was 0.18 and on the lower side it was recorded at 0.06 in the year 2018-19.

143
4.17 P/E RATIO
P/E ratio calculated as market price per share divided by earning per share. It is the ratio of a
company’s share price to the company’s earnings per share. The ratio is used for valuing
companies and to find out whether they are overvalued or undervalued.
Average P/E ratio maintained by the industry is 13.26 of the total values. Maximum P/E
ratio was 40.55 in the year 2013-14 and the least P/E ratio was -81.27 in the year 2015-16. Average
market price per share of Ashok Leyland as compared to its earning per share 39.39. The
highest value, in proportion to its total values, by Ashok Leyland was maintained in 2013-14
which was 1 7 9 . 0 9 and on the lower side it was recorded at 11.01 in the year 2010-11. Market
price per share of Atul Auto as compared to its earning per share 15.10. The highest value, in
proportion to its total values, by Atul Auto was maintained in 2016-17 which was 26.11 and on
the lower side it was recorded at 4.71 in the year 2011-12. Market price per share of Bajaj Auto
as compared to its earning per share 18.11. The highest value, in proportion to its total values, by
Bajaj Auto was maintained in 2014-15 which was 21.67 and on the lower side it was recorded at
16.38 in the year 2009-10. Market price per share of Eicher Motors as compared to its earning
per share 44.57. The highest value, in proportion to its total values, by Eicher Motors was
maintained in 2013-14 which was 71.47 and on the lower side it was recorded at 20.87 in the year
2018-19. Market price per share of Escort as compared to its earning per share 16.70. The highest
value, in proportion to its total values, by Escort was maintained in 2017-18 which was 31.76 and
on the lower side it was recorded at 5.84 in the year 2013-14. Market price per share of Force
Motors as compared to its earning per share 17.63. The highest value, in proportion to its total
values, by Force Motors was maintained in 2012-13 which was 34.09 and on the lower side it was
recorded at 0.79 in the year 2011-12. Market price per share of Hero MotoCorp as compared
to its earning per share 16.33. The highest value, in proportion to its total values, by Hero
MotoCorp was maintained in 2013-14 which was 18.85 and on the lower side it was recorded at
13.67 in the year 2010-11. Market price per share of Hindustan Motors as compared to its
earnings per share 26.13. The highest value, in proportion to its total values, by Hindustan Motors
was maintained in 2010-11 which was 328 and on the lower side it was recorded at –42.94 in the
year 2013-14. Market price per share of Maharashtra Scow. as compared to its earning per
share 31.68.

144
TABLE: 4.17.1 P/E RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 16.78 11.01 13.45 14.11 179.09 59.54 38.86 20.58 27.13 13.31 39.39 51.35 4
LEYLAND
ATUL AUTO 6.27 7.20 4.71 7.00 12.15 31.03 22.07 26.11 20.60 13.86 15.10 9.30 13

BAJAJ AUTO 16.38 11.91 16.52 17.97 17.76 21.67 18.47 21.56 20.67 18.15 18.11 2.89 19

EICHER 42.40 32.65 54.36 48.21 71.47 42.12 50.56 49.10 33.92 20.87 44.57 13.81 11
MOTORS
ESCORT 14.03 6.18 10.77 10.77 5.84 21.56 18.02 29.53 31.76 18.49 16.70 8.98 15

FORCE 7.50 18.16 0.79 34.09 5.87 17.87 18.95 32.70 25.84 14.57 17.63 11.06 12
MOTORS
HERO 17.25 13.67 14.40 17.83 18.85 16.55 14.86 16.86 15.70 17.30 16.33 1.64 20
MOTOCORP
HINDUSTAN -7.19 328.00 -5.63 -2.02 -42.94 -3.28 -3.38 -10.73 2.93 5.55 26.13 106.91 2
MOTORS
MAHARASTRA 42.53 17.73 -54.22 9.54 11.50 18.44 13.66 162.59 42.82 52.16 31.68 54.54 3
SCO.
KINETIC ENG. 107.06 -9.56 -9.32 -6.70 -0.91 7.79 -44.79 -8.08 -17.10 -7.65 1.07 39.66 6

MAHINDRA 22.25 15.52 13.89 15.59 15.66 21.89 23.22 19.63 19.98 16.70 18.43 3.35 18
&MAH.
MAJESTIC 3.97 11.87 3.06 -6.99 0.71 2.43 9.28 -11.88 41.82 3.07 5.73 14.45 9
AUTO
MARUTI 16.66 15.60 23.66 17.30 19.16 29.85 19.65 24.75 34.48 27.61 22.87 6.30 17
SUZUKI
PREMIER 24.52 14.83 9.19 2.69 6.68 -2.93 -4.01 -0.93 -0.60 -0.11 4.93 9.07 14

SCOOTERS -4.22 -9.41 -7.87 -19.63 9.87 23.98 40.28 -33.54 -26.45 -53.45 -8.04 27.65 8
IND.
SML 17.49 14.61 14.09 10.96 52.08 44.83 21.15 28.23 17.72 136.12 35.73 37.83 7

SUNDARAM 35.75 14.90 5.36 17.33 17.22 51.15 28.05 69.13 179.85 59.27 47.80 50.90 5
CLY.
TATA 18.14 39.06 71.21 311.05 384.95 -37.71 - -63.66 - 30.63 - 660.33 1
MOTORS 1956.1 114.48 131.69

TVS 48.49 13.68 8.16 14.81 16.89 37.49 28.86 36.54 45.73 34.27 28.49 14.26 10

VSTILLERS 6.05 8.31 8.13 6.46 9.07 17.68 17.00 22.10 20.39 25.85 14.10 7.31 16

TREND 22.61 28.8 9.74 26.02 40.55 21.1 -81.27 21.53 21.14 22.33 13.26 34.09

145
The highest value, in proportion to its total values, by Maharashtra Sco. was maintained in 2016-
17 which was 162.59 and on the lower side it was recorded at -54.22 in the year 2011-12. Market
price per share of Kinetic Eng. as compared to its earning per share 1.07. The highest value,
in proportion to its total values, by Kinetic Eng. Was maintained in 2009-10 which was 107.06
and on the lower side it was recorded at -44.79 in the year 2015-16. Market price per share of
Mahindra & Mahindra as compared to its earning per share 18.43. The highest value, in
proportion to its total values, by Mahindra & Mahindra was maintained in 2015-16 which was
23.22 and on the lower side it was recorded at 13.89 in the year 2011-12. Market price per share
of Majestic Auto as compared to its earning per share 5.73. The highest value, in proportion to
its total values, by Majestic Auto was maintained in 2017-18 which was 41.82 and on the lower
side it was recorded at -11.88 in the year 2016-17.

4.17.2 P/E RATIO

Chart Title
700
600
500
400
300
200
100
0
-100
-200

MEAN SD

Market price per share of Maruti Suzuki as compared to its earning per share 22.87. The highest
value, in proportion to its total values, by Maruti Suzuki was maintained in 2017-18 which was
34.48 and on the lower side it was recorded at 15.60 in the year 2010-11. Market price per share
of Premier as compared to its earning per share 4.93. The highest value, in proportion to its total

146
values, by Premier was maintained in 2009-10 which was 24.52 and on the lower side it was
recorded at –4.01 in the year 2015-16. Market price per share of Scooters Ind. as compared to
its earning per share -8.04. The highest value, in proportion to its total values, by Scooters Ind. was
maintained in 2015-16 which was 40.28 and on the lower side it was recorded at -53.45 in the
year 2018-19. Market price per share of SML as compared to its earning per share 35.73. The
highest value, in proportion to its total values, by SML was maintained in 2018-19 which was
136.12 and on the lower side it was recorded at 17.49 in the year 2009-10. Market price per share
of Sundaram Cly. as compared to its earning per share 47.80. The highest value, in proportion
to its total values, by Sundaram Cly as maintained in 2017-18 which was 179.85 and on the lower
side it was recorded at 5.36 in the year 2011-12. Market price per share of TATA Motors as
compared to its earning per share -131.69. The highest value, in proportion to its total values, by
TATA Motors was maintained in 2023-13 which was 311.05 and on the lower side it was recorded
at -1956.1 in the year 2015-16. Market price per share of TVS as compared to its earning per
share 28.49. The highest value, in proportion to its total values, by TVS was maintained in 2009-
10 which was 48.49 and on the lower side it was recorded at 8.16 in the year 2011-12. Market
price per share of VSTillers as compared to its earning per share 14.10. The highest value, in
proportion to its total values by VSTillers was maintained in 2018-19 which was 25.85 and on the
lower side it was recorded at 6.05 in the year 2009-10.

4.18 P/CF RATIO

P/CF ratio calculated as market price per share divided by total cash flow. It is a stock valuation
indicator or multiple that measures the value of stock’s price relative to its operating cash flow per
share.
Average P/CF ratio maintained by the industry is -13.62 of the total values. Maximum
P/CF ratio was 39.52 in the year 2011-12 and the least P/CF ratio was -153.68 in the year 2016-
17. Average market price per share of Ashok Leyland as compared to its total cash flow -0.01.
The highest value, in proportion to its total values, by Ashok Leyland was maintained in 2017-18
which was 0 . 0 1 and on the lower side it was recorded at -0.08 in the year 2013-14. Market
price per share of Atul Auto as compared to its total cash flow -0.20. The highest value, in
proportion to its total values, by Atul Auto was maintained in 2010-11 which was 0.97 and on the

147
lower side it was recorded at -2.25 in the year 2009-10. Market price per share of Bajaj Auto
as compared to its total cash flow -0.10. The highest value, in proportion to its total values, by
Bajaj Auto was maintained in 2010-11 which was 2.49 and on the lower side it was recorded at -
5.44 in the year 2009-10. Market price per share of Eicher Motors as compared to its total cash
flow 108.98. The highest value, in proportion to its total values, by Eicher Motors was maintained
in 2016-17 which was 676.94 and on the lower side it was recorded at -287.33 in the year 2015-
16. Market price per share of Escort as compared to its total cash flow -0.14. The highest value,
in proportion to its total values, by Escort was maintained in 2016-17 which was 2.14 and on the
lower side it was recorded at -2.43 in the year 2009-10. Market price per share of Force Motors
as compared to its total cash flow 0.14. The highest value, in proportion to its total values, by
Force Motors was maintained in 2015-16 which was 1.51 and on the lower side it was recorded at
-0.74 in the year 2010-11. Market price per share of Hero MotoCorp as compared to its total
cash flow 0.46. The highest value, in proportion to its total values, by Hero MotoCorp was
maintained in 2018-19 which was 46.55 and on the lower side it was recorded at -30.68 in the
year 2011-12. Market price per share of Hindustan Motors as compared to its total cash flow
2.49. The highest value, in proportion to its total values, by Hindustan Motors was maintained in
2016-17 which was 25.68 and on the lower side it was recorded at –0.65 in the year 2015-16.
Market price per share of Maharashtra Scow. as compared to its total cash flow -52.33. The
highest value, in proportion to its total values, by Maharashtra Sco. was maintained in 2017-18
which was 94.93 and on the lower side it was recorded at -615.30 in the year 2018-19. Market
price per share of Kinetic Eng. as compared to its total cash flow -4.45. The highest value,
in proportion to its total values, by Kinetic Eng. Was maintained in 2013-14 which was 1.48 and
on the lower side it was recorded at -25.70 in the year 2012-13. Market price per share of
Mahindra & Mahindra as compared to its total cash flow 1.75. The highest value, in proportion
to its total values, by Mahindra & Mahindra was maintained in 2012-13 which was 31.80 and on
the lower side it was recorded at -16.51 in the year 2015-16. Market price per share of Majestic
Auto as compared to its total cash flow 16.92. The highest value, in proportion to its total values,
by Majestic Auto was maintained in 2018-19 which was 199.97 and on the lower side it was
recorded at -16.06 in the year 2017-18. Market price per share of Maruti Suzuki as compared
to its total cash flow 0.61.

148
TABLE: 4.18 P/CF RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.00 0.00 0.00 -0.01 -0.08 0.00 0.00 0.00 0.01 0.00 -0.01 0.03 20
LEYLAND
ATUL AUTO -2.25 0.97 0.14 0.06 0.47 -0.49 -0.37 0.10 -0.18 -0.48 -0.20 0.85 17

BAJAJ AUTO -5.44 2.49 0.18 -0.30 -3.11 2.37 0.96 -0.53 0.64 1.71 -0.10 2.49 14

EICHER -1.16 -63.89 560.58 32.70 60.60 80.79 - 676.94 27.90 2.62 108.98 289.14 2
MOTORS 287.33

ESCORT -2.43 0.07 -0.06 -0.06 0.40 -0.53 -0.65 2.14 0.97 -1.20 -0.14 1.23 16

FORCE 0.38 -0.74 0.01 -0.02 -0.38 0.16 1.51 1.49 -0.61 -0.44 0.14 0.80 18
MOTORS
HERO 3.88 -5.88 -30.68 1.87 -2.81 6.67 -5.62 -24.69 15.31 46.55 0.46 21.31 5
MOTOCORP
HINDUSTAN 0.01 -0.01 -0.01 -0.01 -0.02 -0.11 -0.65 25.68 0.00 -0.01 2.49 8.15 10
MOTORS
MAHARASTRA -0.53 -2.77 0.79 0.17 -0.28 0.81 -1.92 0.83 94.93 - -52.33 200.07 3
SCO. 615.30

KINETIC ENG. -0.16 -0.09 -17.53 -25.70 1.48 0.12 -0.20 0.72 -0.66 -2.50 -4.45 9.30 9

MAHINDRA 4.08 -0.63 1.25 31.80 2.01 -1.56 -16.51 -4.62 0.83 0.82 1.75 12.02 7
&MAH.
MAJESTIC 0.96 2.23 -0.48 -15.05 -0.30 0.07 -0.10 -2.04 -16.06 199.97 16.92 64.65 4
AUTO
MARUTI -0.08 0.05 1.66 -0.88 -3.20 -7.13 16.86 -23.04 15.49 6.40 0.61 11.34 8
SUZUKI
PREMIER 0.16 0.10 -1.02 0.26 -0.15 -19.86 3.94 -0.44 0.54 -0.21 -1.67 6.53 12

SCOOTERS 0.41 -0.14 0.02 0.26 0.03 -0.77 -0.03 -0.07 -0.07 -0.03 -0.04 0.31 19
IND.
SML 0.14 0.43 0.11 -0.12 2.82 -0.50 -0.96 -5.36 -3.38 0.55 -0.63 2.26 15

SUNDARAM -0.06 -0.02 283.47 -4.26 5.26 -100.0 26.78 -3719. -39.75 54.76 -349.3 1188.37 1
CLY.
TATA 8.91 1.87 -0.64 -0.36 -22.74 0.83 0.33 1.09 1.10 -3.16 -1.28 8.15 11
MOTORS
TVS 0.63 -0.32 -0.32 0.21 1.42 -3.54 11.06 -4.43 6.99 2.74 1.44 4.63 13

VSTILLERS -0.79 0.77 -7.14 0.28 -0.84 -3.35 1.69 2.04 -1.37 59.15 5.04 19.20 6

TREND 0.33 -3.28 39.52 1.04 2.03 -2.3 -12.56 - 5.13 -12.4 -13.62 51.30
153.68

149
4.18 P/CF RATIO

Chart Title
1400
1200
1000
800
600
400
200
0
-200
-400
-600

MEAN SD

The highest value, in proportion to its total values, by Maruti Suzuki was maintained in 2015-16
which was 16.86 and on the lower side it was recorded at -23.04 in the year 2016-17. Market price
per share of Premier as compared to its total cash flow -1.67. The highest value, in proportion to
its total values, by Premier was maintained in 2015-16 which was 3.94 and on the lower side it
was recorded at –19.86 in the year 2014-15. Market price per share of Scooters Ind. as compared
to its total cash flow -0.04. The highest value, in proportion to its total values, by Scooters Ind.
was maintained in 2009-10 which was 0.41 and on the lower side it was recorded at -0.77 in the
year 2014-15. Market price per share of SML as compared to its total cash flow -0.63. The highest
value, in proportion to its total values, by SML was maintained in 2013-14 which was 2.82 and on
the lower side it was recorded at -5.36 in the year 2016-17. Market price per share of Sundaram
Cly. as compared to its total cash flow -349.34. The highest value, in proportion to its total values,
by Sundaram Cly as maintained in 2011-12 which was 283.47 and on the lower side it was
recorded at -3719.5 in the year 2016-17. Market price per share of TATA Motors as compared
to its total cash flow-1.28. The highest value, in proportion to its total values, by TATA Motors
was maintained in 2009-10 which was 8.91 and on the lower side it was recorded at -22.74 in the

150
year 2013-14. Market price per share of TVS as compared to its total cash flow 1.44. The highest
value, in proportion to its total values, by TVS was maintained in 2015-16 which was 11.06 and
on the lower side it was recorded at -4.43 in the year 2016-17. Market price per share of
VSTillers as compared to its total cash flow 5.04. The highest value, in proportion to its total
values by VSTillers was maintained in 2018-19 which was 59.15 and on the lower side it was
recorded at -7.14 in the year 2011-12

4.19 P B RATIO
P B ratio calculated as market price per share divided by book value per share. This ratio
measures the market’s valuation of a company relative to its book value. The market value of
equity is typically higher than the book value of a company, p/b ratio is used by value investors
to identify potential investment.
Average P/B ratio maintained by the industry is 43.62 of the total values. Maximum P/B
ratio was 85.86 in the year 2017-18 and the least P/B ratio was 8.62 in the year 2010-11. Average
market price per share of Ashok Leyland as compared to its book value per share 2.99. The
highest value, in proportion to its total values, by Ashok Leyland was maintained in 2017-18
which was 5 . 9 2 and on the lower side it was recorded at 1.37 in the year 2012-13. Market price
per share of Atul Auto as compared to its book value per share 4.22. The highest value, in
proportion to its total values, by Atul Auto was maintained in 2014-15 which was 11.01 and on
the lower side it was recorded at 0.85 in the year 2009-10. Market price per share of Bajaj Auto
as compared to its book value per share 6.31. The highest value, in proportion to its total values,
by Bajaj Auto was maintained in 2009-10 which was 9.52 and on the lower side it was recorded
at 3.90 in the year 2018-19. Market price per share of Eicher Motors as compared to its book
value per share 166.20. The highest value, in proportion to its total values, by Eicher Motors was
maintained in 2013-14 which was 324 and on the lower side it was recorded at 60.24 in the year
2018-19. Market price per share of Escort as compared to its book value per share 15.74. The
highest value, in proportion to its total values, by Escort was maintained in 2017-18 which was
44.08 and on the lower side it was recorded at 4.26 in the year 2010-11. Market price per share of
Force Motors as compared to its book value per share 1.66. The highest value, in proportion to
its total values, by Force Motors was maintained in 2016-17 which was 3.54 and on the lower

151
TABLE: 4.19.1 P/B RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 1.76 1.56 1.81 1.37 1.18 3.97 5.09 4.05 5.92 3.17 2.99 1.70 14
LEYLAND
ATUL AUTO 0.85 1.68 1.52 2.58 4.06 11.01 7.16 5.71 4.59 3.01 4.22 3.10 7

BAJAJ AUTO 9.52 8.10 8.21 6.92 6.00 5.70 5.49 4.84 4.40 3.90 6.31 1.83 13

EICHER 84.27 75.36 125.12 163.72 324.00 241.08 284.09 195.70 108.37 60.24 166.20 92.20 2
MOTORS
ESCORT 12.50 4.26 4.78 4.78 8.02 9.21 8.84 30.61 44.08 30.36 15.74 14.03 3

FORCE 1.60 3.19 0.57 0.42 0.37 1.38 2.30 3.54 2.12 1.11 1.66 1.12 16
MOTORS
HERO 11.11 9.28 7.98 7.54 7.10 6.43 5.86 5.63 4.93 4.56 7.04 2.03 10
MOTOCORP
HINDUSTAN 2.13 2.98 6.28 -4.60 -3.87 -2.38 -1.16 -1.81 -2.93 -4.90 -1.03 3.67 5
MOTORS
MAHARASTRA 1.78 1.83 1.74 2.08 2.29 4.00 4.42 6.29 0.32 0.34 2.51 1.87 12
SCO.
KINETIC ENG. 0.79 1.30 1.77 1.13 -3.34 1.59 2.70 3.38 3.78 2.74 1.58 2.00 11

MAHINDRA 62.43 42.69 34.49 37.12 36.58 39.70 34.12 31.69 30.05 24.45 37.33 10.19 4
&MAH.
MAJESTIC 1.54 1.39 0.73 0.55 0.32 0.40 0.51 0.73 0.35 0.38 0.69 0.43 20
AUTO
MARUTI 3.52 2.57 2.55 2.23 2.54 4.67 3.53 5.02 6.37 4.49 3.75 1.36 15
SUZUKI
PREMIER 2.17 0.39 0.30 0.46 0.34 0.30 0.25 0.32 -7.62 0.12 -0.30 2.64 8

SCOOTERS 2.21 3.01 -2.00 4.99 1.61 2.86 2.23 3.89 7.10 4.10 3.00 2.38 9
IND.
SML 2.59 2.51 2.44 1.51 3.28 5.47 3.18 4.40 2.77 2.90 3.11 1.11 17

SUNDARAM 1.81 2.13 108.49 210.10 273.74 972.15 805.31 1193.50 1487.23 1029.67 608.41 549.68 1
CLY.
TATA 2.60 3.18 0.77 0.82 1.13 2.04 0.87 1.29 1.00 0.47 1.42 0.89 18
MOTORS
TVS 2.46 2.67 1.74 1.40 3.12 7.92 7.21 8.47 10.52 6.86 5.24 3.30 6

VSTILLERS 2.02 2.34 1.98 1.28 2.41 3.38 3.00 3.24 3.83 2.02 2.55 0.79 19

TREND 10.48 8.62 15.56 22.32 33.54 66.04 59.25 75.52 85.86 59 43.62 28.77

152
side it was recorded at 0.37 in the year 2013-14. Market price per share of Hero MotoCorp as
compared to its book value per share 7.04. The highest value, in proportion to its total values, by
Hero MotoCorp was maintained in 2009-10 which was 11.11 and on the lower side it was recorded
at 4.56 in the year 2018-19. Market price per share of Hindustan Motors as compared to its
book value per share -1.03. The highest value, in proportion to its total values, by Hindustan Motors
was maintained in 2011-12 which was 6.28 and on the lower side it was recorded at –4.90 in the
year 2018-19. Market price per share of Maharashtra Scow. as compared to its book value per
share 2.51. The highest value, in proportion to its total values, by Maharashtra Sco. was maintained
in 2016-17 which was 6.29 and on the lower side it was recorded at 0.32 in the year 2017-18.
Market price per share of Kinetic Eng. as compared to its book value per share -1.58. The
highest value, in proportion to its total values, by Kinetic Eng. Was maintained in 2017-18 which
was 3.78 and on the lower side it was recorded at -3.34 in the year 2013-14. Market price per share
of Mahindra & Mahindra as compared to its book value per share 37.33. The highest value, in
proportion to its total values, by Mahindra & Mahindra was maintained in 2009-10 which was
62.43 and on the lower side it was recorded at 24.45 in the year 2018-19. Market price per share
of Majestic Auto as compared to its book value per share 0.69.

4.19.2 P B RATIO

Chart Title
700
600
500
400
300
200
100
0
-100

MEAN SD

153
The highest value, in proportion to its total values, by Majestic Auto was maintained in 2009-10
which was 1.54 and on the lower side it was recorded at 0.32 in the year 2013-14. Market price
per share of Maruti Suzuki as compared to its book value per share 3.75. The highest value, in
proportion to its total values, by Maruti Suzuki was maintained in 2017-18 which was 6.37 and on
the lower side it was recorded at 2.23 in the year 2012-13. Market price per share of Premier as
compared to its book value per share -0.30. The highest value, in proportion to its total values, by
Premier was maintained in 2009-10 which was 2.17 and on the lower side it was recorded at –
7.62 in the year 2017-18. Market price per share of Scooters Ind. as compared to its book value
per share 3. The highest value, in proportion to its total values, by Scooters Ind. was maintained in
2017-18 which was 7.10 and on the lower side it was recorded at -2 in the year 2011-12. Market
price per share of SML as compared to its book value per share 3.11. The highest value, in
proportion to its total values, by SML was maintained in 2014-15 which was 5.47 and on the lower
side it was recorded at 1.51 in the year 2012-13. Market price per share of Sundaram Cly. as
compared to its book value per share 608.41. The highest value, in proportion to its total values,
by Sundaram Cly as maintained in 2017-18 which was 1487.23 and on the lower side it was
recorded at 1.81 in the year 2009-10. Market price per share of TATA Motors as compared to
its book value per share-1.42. The highest value, in proportion to its total values, by TATA Motors
was maintained in 2010-11 which was 3.18 and on the lower side it was recorded at 0.47 in the
year 2018-19. Market price per share of TVS as compared to its book value per share 5.24. The
highest value, in proportion to its total values, by TVS was maintained in 2017-18 which was
10.52 and on the lower side it was recorded at 1.74 in the year 2011-12. Market price per share
of VSTillers as compared to its book value per share 2.55. The highest value, in proportion to
its total values by VSTillers was maintained in 2017-18 which was 3.83 and on the lower side it
was recorded at 1.28 in the year 2012-13.

154
4.20 FINANCIAL LEVERAGE RATIO
Financial leverage ratio calculated as total debt of the company divided by shareholder’s equity.
Leverage is an investment strategy of using borrowed money specially the use of various
financial instruments or borrowed capital to increase the potential return of an investme nt. A
figure of 0.5 or less is ideal for the company of financial leverage ratio.
. Average financial leverage ratio maintained by the industry is 0.26 of the total values.
Maximum financial leverage ratio was 0.59 in the year 2010-11 and the least financial leverage
ratio was -0.76 in the year 2017-18. Average total debt of Ashok Leyland as compared to its
shareholder’s equity 0.34. The highest value, in proportion to its total values, by Ashok Leyland
was maintained in 2013-14 which was 0 . 8 7 and on the lower side it was recorded at 0 in the
year 2010-11. Total debt of Atul Auto as compared to its shareholder’s equity 0.09. The highest
value, in proportion to its total values, by Atul Auto was maintained in 2009-10 which was 0.69
and on the lower side it was recorded at 0 in the year 2012-13 to 2018-19. Total debt of Bajaj
Auto as compared to its shareholder’s equity 0.06. The highest value, in proportion to its total
values, by Bajaj Auto was maintained in 2009-10 which was 0.46 and on the lower side it was
recorded at 0 in the year 2016-17 to 2018-19. Total debt of Eicher Motors as compared to its
shareholder’s equity 0.02. The highest value, in proportion to its total values, by Eicher Motors
was maintained in 2009-10 which was 0.05 and on the lower side it was recorded at 0 in the year
2012-13 and 2013-14. Total debt of Escort as compared to its shareholder’s equity 0.17. The
highest value, in proportion to its total values, by Escort was maintained in 2011-12 and 2012-13
which was 0.28 and on the lower side it was recorded at 0.01 in the year 2017-18. Total debt of
Force Motors as compared to its shareholder’s equity 0.18. The highest value, in proportion to
its total values, by Force Motors was maintained in 2010-11 which was 0.75 and on the lower side
it was recorded at 0 in the year 2015-16. Total debt of Hero MotoCorp as compared to its
shareholder’s equity 0. The highest value, in proportion to its total values, by Hero MotoCorp was
maintained in 2009-10 which was 0.02 and on the lower side it was recorded at 0 in the year 2011-
12 to 2018-19. Total debt of Hindustan Motors as compared to its shareholder’s equity 0.32.
The highest value, in proportion to its total values, by Hindustan Motors was maintained in 2011-
12 which was 4.42 and on the lower side it was recorded at -2.27 in the year 2012-13.

155
TABLE: 4.20.1 FINANCIAL LEVERAGE RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.01 0.00 0.57 0.79 0.87 0.51 0.36 0.22 0.07 0.05 0.34 0.33 6
LEYLAND
ATUL AUTO 0.69 0.15 0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 0.22 11

BAJAJ AUTO 0.46 0.07 0.02 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.06 0.14 13

EICHER 0.05 0.03 0.03 0.00 0.00 0.01 0.01 0.00 0.02 0.01 0.02 0.02 18
MOTORS
ESCORT 0.17 0.21 0.28 0.28 0.19 0.23 0.16 0.11 0.01 0.09 0.17 0.09 15

FORCE 0.52 0.75 0.27 0.04 0.02 0.01 0.00 0.12 0.00 0.13 0.18 0.26 8
MOTORS
HERO 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 19
MOTOCORP
HINDUSTAN 0.52 1.48 4.42 -2.27 -0.54 -0.26 -0.10 -0.04 0.00 0.00 0.32 1.72 3
MOTORS
MAHARASTRA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20
SCO.
KINETIC ENG. 1.29 1.36 2.81 1.11 -4.40 1.56 1.47 1.75 1.56 2.50 1.10 2.00 2

MAHINDRA 0.37 0.23 0.26 0.22 0.22 0.14 0.08 0.11 0.09 0.07 0.18 0.10 14
&MAH.
MAJESTIC 0.73 1.90 1.15 1.44 0.67 0.63 1.02 1.02 0.25 0.14 0.90 0.53 5
AUTO
MARUTI 0.07 0.02 0.07 0.07 0.08 0.01 0.00 0.01 0.00 0.00 0.03 0.03 17
SUZUKI
PREMIER 1.07 0.43 0.37 0.78 0.52 0.43 0.77 0.98 -19.57 0.81 -1.34 6.41 1

SCOOTERS 0.99 1.70 -0.70 0.38 0.28 0.35 0.27 0.30 0.14 0.18 0.39 0.61 4
IND.
SML 0.45 0.40 0.41 0.61 0.00 0.07 0.16 0.10 0.10 0.47 0.28 0.21 12

SUNDARAM 1.18 1.38 1.16 1.33 0.87 0.87 0.56 0.44 0.88 0.99 0.97 0.31 7
CLY.
TATA 1.11 0.79 0.57 0.75 0.76 1.35 0.61 0.92 0.81 0.79 0.85 0.23 10
MOTORS
TVS 1.16 0.79 0.61 0.45 0.34 0.56 0.39 0.45 0.36 0.41 0.55 0.25 9

VSTILLERS 0.09 0.06 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.04 16

TREND 0.55 0.59 0.62 0.30 -0.01 0.32 0.29 0.32 -0.76 0.33 0.26 0.68

156
Total debt of Maharashtra Scow. as compared to its shareholder’s equity 0. Total debt of
Kinetic Eng. as compared to its shareholder’s equity 1.10. The highest value, in proportion
to its total values, by Kinetic Eng. Was maintained in 2011-12 which was 2.81 and on the lower
side it was recorded at -4.40 in the year 2013-14. Total debt of Mahindra & Mahindra as
compared to its shareholder’s equity 0.18. The highest value, in proportion to its total values, by
Mahindra & Mahindra was maintained in 2009-10 which was 0.37 and on the lower side it was
recorded at 0.07 in the year 2018-19. Total debt of Majestic Auto as compared to its
shareholder’s equity 0.90.
4.20.2 FINANCIAL LEVERAGE RATIO

Chart Title
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
-1.00
-2.00

MEAN SD

The highest value, in proportion to its total values, by Majestic Auto was maintained in 2010-11
which was 1.90 and on the lower side it was recorded at 0.14 in the year 2018-19. Total debt of
Maruti Suzuki as compared to its shareholder’s equity 0.03. The highest value, in proportion to
its total values, by Maruti Suzuki was maintained in 2013-14 which was 0.08 and on the lower
side it was recorded at 0 in the year 2017-18 and 2018-19. Total debt of Premier as compared
to its shareholder’s equity -1.34. The highest value, in proportion to its total values, by Premier
was maintained in 2009-10 which was 1.07 and on the lower side it was recorded at –19.57 in the

157
year 2017-18. Total debt of Scooters Ind. as compared to its shareholder’s equity 0.39. The
highest value, in proportion to its total values, by Scooters Ind. was maintained in 2010-11 which
was 1.70 and on the lower side it was recorded at -0.70 in the year 2011-12. Total debt of SML
as compared to its shareholder’s equity 0.28. The highest value, in proportion to its total values,
by SML was maintained in 2012-13 which was 0.61 and on the lower side it was recorded at 0 in
the year 2013-14. Total debt of Sundaram Cly. as compared to its shareholder’s equity 0.97.
The highest value, in proportion to its total values, by Sundaram Cly as maintained in 2010-11
which was 1.38 and on the lower side it was recorded at 0.44 in the year 2016-17. Total debt of
TATA Motors as compared to its shareholder’s equity 0.85. The highest value, in proportion to
its total values, by TATA Motors was maintained in 2014-15 which was 1.35 and on the lower
side it was recorded at 0.57 in the year 2011-12. Total debt of TVS as compared to its
shareholder’s equity 0.55. The highest value, in proportion to its total values, by TVS was
maintained in 2009-10 which was 1.16 and on the lower side it was recorded at 0.34 in the year
2013-14. Total debt of VSTillers as compared to its shareholder’s equity 0.02. The highest value,
in proportion to its total values by VSTillers was maintained in 2009-10 which was 0.09 and on
the lower side it was recorded at 0 in the year 2012-13 to 2018-19

4.21 ASSET TURNOVER RATIO

Asset turnover ratio calculated as net sales of the company divided by total assets. It is a
measure of how efficient management is using the assets at its disposal to promote sales. A high
ratio indicates that the company is using its assets efficiency to increase sales, while low ratio
indicates the opposite.
. Average asset turnover ratio maintained by the industry is 1.19 of the total values.
Maximum asset turnover ratio was 1.37 in the year 2012-13 and the least asset turnover ratio was
1.02 in the year 2018-19. Average net sales of Ashok Leyland as compared to its total assets
1.18. The highest value, in proportion to its total values, by Ashok Leyland was maintained in
2017-18 which was 1 . 6 0 and on the lower side it was recorded at 0.78 in the year 2009-10 and
2013-14. Net sales of Atul Auto as compared to its total assets 2.41. The highest value, in
proportion to its total values, by Atul Auto was maintained in 2011-12 which was 3.09 and on the
lower side it was recorded at 1.55 in the year 2009-10. Net sales of Bajaj Auto as compared to

158
its total assets 1.36. The highest value, in proportion to its total values, by Bajaj Auto was
maintained in 2010-11 which was 1.70 and on the lower side it was recorded at 1.05 in the year
2017-18. Net sales of Eicher Motors as compared to its total assets 1.25. The highest value, in
proportion to its total values, by Eicher Motors was maintained in 2015-16 which was 1.93 and on
the lower side it was recorded at 0.78 in the year 2009-10. Net sales of Escort as compared to
its total assets 1.17. The highest value, in proportion to its total values, by Escort was maintained
in 2013-14 which was 1.66 and on the lower side it was recorded at 0.95 in the year 2009-10. Net
sales of Force Motors as compared to its total assets 1.27. The highest value, in proportion to
its total values, by Force Motors was maintained in 2010-11 which was 1.41 and on the lower side
it was recorded at 1.20 in the year 2014-15. Net sales of Hero MotoCorp as compared to its
total asset 2.18. The highest value, in proportion to its total values, by Hero MotoCorp was
maintained in 2014-15 which was 2.60 and on the lower side it was recorded at 1.77 in the year
2010-11. Net sales of Hindustan Motors as compared to its total assets 0.84. The highest value,
in proportion to its total values, by Hindustan Motors was maintained in 2012-13 which was 2.71
and on the lower side it was recorded at 0 in the year 2017-18. Net sales of Maharashtra Scow.
as compared to its total assets 0.02 .Net sales of Kinetic Eng. as compared to its total assets
0.39. The highest value, in proportion to its total values, by Kinetic Eng. Was maintained in 2018-
19 which was 0.72 and on the lower side it was recorded at 0.19 in the year 2009-10. Net sales of
Mahindra & Mahindra as compared to its total assets 1.20. The highest value, in proportion to
its total values, by Mahindra & Mahindra was maintained in 2012-13 which was 1.45 and on the
lower side it was recorded at 1.02 in the year 2018-19. Net sales of Majestic Auto as compared
to its total assets 0.50. The highest value, in proportion to its total values, by Majestic Auto was
maintained in 2009-10 which was 1.02 and on the lower side it was recorded at 0.02 in the year
2017-18. Net sales of Maruti Suzuki as compared to its total assets 1.55. The highest value, in
proportion to its total values, by Maruti Suzuki was maintained in 2010-11 which was 1.96 and on
the lower side it was recorded at 1.37 in the year 2018-19. Net sales of Premier as compared to
its total assets 0.15. The highest value, in proportion to its total values, by Premier was maintained
in 2009-10 which was 0.29 and on the lower side it was recorded at 0.02 in the year 2018-19. Net
sales of Scooters Ind. as compared to its total assets 1.19. The highest value, in proportion to its
total values, by Scooters Ind. was maintained in 2011-12 which was 2.07 and on the lower side it
was recorded at 0.46 in the year 2017-18.

159
TABLE: 4.21.1 ASSET TURNOVER RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.78 1.05 1.08 0.95 0.78 1.02 1.41 1.56 1.60 1.59 1.18 0.33 5
LEYLAND
ATUL AUTO 1.55 2.70 3.09 2.95 2.97 2.76 2.38 1.92 1.89 1.87 2.41 0.56 3

BAJAJ AUTO 1.32 1.70 1.70 1.56 1.34 1.36 1.42 1.09 1.05 1.08 1.36 0.24 9

EICHER 0.78 0.85 1.02 1.15 1.36 1.81 1.93 1.44 1.18 1.03 1.25 0.38 4
MOTORS
ESCORT 0.95 1.03 1.14 1.14 1.66 1.18 1.04 1.19 1.17 1.24 1.17 0.19 11

FORCE 1.21 1.41 1.25 1.16 1.14 1.20 1.33 1.30 1.40 1.29 1.27 0.10 18
MOTORS
HERO 1.85 1.77 2.36 2.45 2.49 2.60 2.28 2.10 1.96 1.91 2.18 0.30 8
MOTOCORP
HINDUSTAN 1.51 1.57 1.41 2.71 0.97 0.21 0.02 0.03 0.00 0.02 0.84 0.94 1
MOTORS
MAHARASTRA 0.02 0.03 0.03 0.02 0.01 0.02 0.03 0.02 0.00 0.00 0.02 0.01 20
SCO.
KINETIC ENG. 0.19 0.38 0.34 0.25 0.22 0.23 0.37 0.50 0.66 0.72 0.39 0.19 15

MAHINDRA 1.12 1.15 1.32 1.45 1.28 1.17 1.23 1.20 1.04 1.02 1.20 0.13 17
&MAH.
MAJESTIC 1.02 0.71 0.77 0.65 0.41 0.40 0.32 0.48 0.02 0.18 0.50 0.30 7
AUTO
MARUTI 1.77 1.96 1.56 1.60 1.39 1.45 1.55 1.52 1.38 1.37 1.55 0.19 14
SUZUKI
PREMIER 0.29 0.20 0.22 0.21 0.15 0.18 0.10 0.04 0.03 0.02 0.15 0.09 19

SCOOTERS 1.55 1.85 2.07 1.99 1.15 0.84 0.78 0.61 0.46 0.60 1.19 0.62 2
IND.
SML 1.47 1.63 1.67 1.52 1.59 1.63 1.59 1.74 1.93 1.19 1.59 0.19 13

SUNDARAM 0.78 0.95 1.11 1.11 1.27 1.38 1.35 1.20 0.93 1.06 1.11 0.19 12
CLY.
TATA 0.71 0.89 1.00 0.86 0.69 0.73 0.84 0.84 0.99 1.14 0.87 0.14 16
MOTORS
TVS 1.62 2.16 2.29 2.26 2.23 2.19 2.44 2.23 2.17 2.18 2.18 0.21 10

VSTILLERS 1.78 1.72 1.65 1.43 1.33 1.17 1.21 1.12 0.97 0.82 1.32 0.32 6

TREND 1.11 1.29 1.35 1.37 1.22 1.18 1.18 1.11 1.04 1.02 1.19 0.28

160
4.21.2 ASSET TURNOVER RATIO

Chart Title
3.00

2.50

2.00

1.50

1.00

0.50

0.00

MEAN SD

Net sales of SML as compared to its total assets 1.59. The highest value, in proportion to its total
values, by SML was maintained in 2017-18 which was 1.93 and on the lower side it was recorded
at 1.47 in the year 2009-10. Net sales of Sundaram Cly. as compared to its total assets 1.11. The
highest value, in proportion to its total values, by Sundaram Cly as maintained in 2014-15 which
was 1.38 and on the lower side it was recorded at 0.78 in the year 2009-10. Net sales of TATA
Motors as compared to its total assets 0.87. The highest value, in proportion to its total values,
by TATA Motors was maintained in 2018-19 which was 1.14 and on the lower side it was recorded
at 0.71 in the year 2009-10. Net sales of TVS as compared to its total assets 2.18. The highest
value, in proportion to its total values, by TVS was maintained in 2015-16 which was 2.44 and on
the lower side it was recorded at 1.62 in the year 2009-10. Net sales of VSTillers as compared
to its total assets 1.32. The highest value, in proportion to its total values by VSTillers was
maintained in 2009-10 which was 1.78 and on the lower side it was recorded at 0.82 in the year
2018-19.

161
4.22 CURRENT RATIO
Current ratio calculated as current assets of the company divided by current liability of the
company. This ratio is liquidity ratio which measures whether a firm has enough resources to meet
its short term obligations. A good current ratio is between 1.2 to 2, which means that the business
has 2 times more current assets than liabilities to cover its debts.

. Average asset turnover ratio maintained by the industry is 1.19 of the total values.
Maximum asset turnover ratio was 1.37 in the year 2012-13 and the least asset turnover ratio was
1.02 in the year 2018-19. Average net sales of Ashok Leyland as compared to its total assets
1.18. The highest value, in proportion to its total values, by Ashok Leyland was maintained in
2017-18 which was 1 . 6 0 and on the lower side it was recorded at 0.78 in the year 2009-10 and
2013-14. Net sales of Atul Auto as compared to its total assets 2.41. The highest value, in
proportion to its total values, by Atul Auto was maintained in 2011-12 which was 3.09 and on the
lower side it was recorded at 1.55 in the year 2009-10. Net sales of Bajaj Auto as compared to
its total assets 1.36. The highest value, in proportion to its total values, by Bajaj Auto was
maintained in 2010-11 which was 1.70 and on the lower side it was recorded at 1.05 in the year
2017-18. Net sales of Eicher Motors as compared to its total assets 1.25. The highest value, in
proportion to its total values, by Eicher Motors was maintained in 2015-16 which was 1.93 and on
the lower side it was recorded at 0.78 in the year 2009-10. Net sales of Escort as compared to
its total assets 1.17. The highest value, in proportion to its total values, by Escort was maintained
in 2013-14 which was 1.66 and on the lower side it was recorded at 0.95 in the year 2009-10. Net
sales of Force Motors as compared to its total assets 1.27. The highest value, in proportion to
its total values, by Force Motors was maintained in 2010-11 which was 1.41 and on the lower side
it was recorded at 1.20 in the year 2014-15. Net sales of Hero MotoCorp as compared to its
total asset 2.18. The highest value, in proportion to its total values, by Hero MotoCorp was
maintained in 2014-15 which was 2.60 and on the lower side it was recorded at 1.77 in the year
2010-11. Net sales of Hindustan Motors as compared to its total assets 0.84. The highest value,
in proportion to its total values, by Hindustan Motors was maintained in 2012-13 which was 2.71
and on the lower side it was recorded at 0 in the year 2017-18. Net sales of Maharashtra Scow.
as compared to its total assets 0.02 .Net sales of Kinetic Eng. as compared to its total assets
0.39. The highest value, in proportion to its total values, by Kinetic Eng. Was maintained in 2018-
19 which was 0.72 and on the lower side it was recorded at 0.19 in the year 2009-10.

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TABLE: 4.22.1 CURRENT RATIO
YEAR 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- MEAN S.D. RANK
10 11 12 13 14 15 16 17 18 19
ASHOK 0.01 0.00 0.57 0.79 0.87 0.51 0.36 0.22 0.07 0.05 0.34 0.33 6
LEYLAND
ATUL AUTO 0.69 0.15 0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 0.22 11

BAJAJ AUTO 0.46 0.07 0.02 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.06 0.14 13

EICHER 0.05 0.03 0.03 0.00 0.00 0.01 0.01 0.00 0.02 0.01 0.02 0.02 18
MOTORS
ESCORT 0.17 0.21 0.28 0.28 0.19 0.23 0.16 0.11 0.01 0.09 0.17 0.09 15

FORCE 0.52 0.75 0.27 0.04 0.02 0.01 0.00 0.12 0.00 0.13 0.18 0.26 8
MOTORS
HERO 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 19
MOTOCORP
HINDUSTAN 0.52 1.48 4.42 -2.27 -0.54 -0.26 -0.10 -0.04 0.00 0.00 0.32 1.72 3
MOTORS
MAHARASTRA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20
SCO.
KINETIC ENG. 1.29 1.36 2.81 1.11 -4.40 1.56 1.47 1.75 1.56 2.50 1.10 2.00 2

MAHINDRA 0.37 0.23 0.26 0.22 0.22 0.14 0.08 0.11 0.09 0.07 0.18 0.10 14
&MAH.
MAJESTIC 0.73 1.90 1.15 1.44 0.67 0.63 1.02 1.02 0.25 0.14 0.90 0.53 5
AUTO
MARUTI 0.07 0.02 0.07 0.07 0.08 0.01 0.00 0.01 0.00 0.00 0.03 0.03 17
SUZUKI
PREMIER 1.07 0.43 0.37 0.78 0.52 0.43 0.77 0.98 -19.57 0.81 -1.34 6.41 1

SCOOTERS 0.99 1.70 -0.70 0.38 0.28 0.35 0.27 0.30 0.14 0.18 0.39 0.61 4
IND.
SML 0.45 0.40 0.41 0.61 0.00 0.07 0.16 0.10 0.10 0.47 0.28 0.21 12

SUNDARAM 1.18 1.38 1.16 1.33 0.87 0.87 0.56 0.44 0.88 0.99 0.97 0.31 7
CLY.
TATA 1.11 0.79 0.57 0.75 0.76 1.35 0.61 0.92 0.81 0.79 0.85 0.23 10
MOTORS
TVS 1.16 0.79 0.61 0.45 0.34 0.56 0.39 0.45 0.36 0.41 0.55 0.25 9

VSTILLERS 0.09 0.06 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.04 16

TREND 0.55 0.59 0.62 0.30 -0.01 0.32 0.29 0.32 -0.76 0.33 0.26 0.68

163
Net sales of Mahindra & Mahindra as compared to its total assets 1.20. The highest value, in
proportion to its total values, by Mahindra & Mahindra was maintained in 2012-13 which was
1.45 and on the lower side it was recorded at 1.02 in the year 2018-19. Net sales of Majestic
Auto as compared to its total assets 0.50. The highest value, in proportion to its total values, by
Majestic Auto was maintained in 2009-10 which was 1.02 and on the lower side it was recorded
at 0.02 in the year 2017-18. Net sales of Maruti Suzuki as compared to its total assets 1.55. The
highest value, in proportion to its total values, by Maruti Suzuki was maintained in 2010-11 which
was 1.96 and on the lower side it was recorded at 1.37 in the year 2018-19. Net sales of Premier
as compared to its total assets 0.15. The highest value, in proportion to its total values, by Premier
was maintained in 2009-10 which was 0.29 and on the lower side it was recorded at 0.02 in the
year 2018-19. Net sales of Scooters Ind. as compared to its total assets 1.19. The highest value,
in proportion to its total values, by Scooters Ind. was maintained in 2011-12 which was 2.07 and
on the lower side it was recorded at 0.46 in the year 2017-18.

4.22.2 CURRENT RATIO

Chart Title
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
-1.00
-2.00

MEAN SD

Net sales of SML as compared to its total assets 1.59. The highest value, in proportion to its total
values, by SML was maintained in 2017-18 which was 1.93 and on the lower side it was recorded
at 1.47 in the year 2009-10. Net sales of Sundaram Cly. as compared to its total assets 1.11.

164
The highest value, in proportion to its total values, by Sundaram Cly as maintained in 2014-15
which was 1.38 and on the lower side it was recorded at 0.78 in the year 2009-10. Net sales of
TATA Motors as compared to its total assets 0.87. The highest value, in proportion to its total
values, by TATA Motors was maintained in 2018-19 which was 1.14 and on the lower side it was
recorded at 0.71 in the year 2009-10. Net sales of TVS as compared to its total assets 2.18. The
highest value, in proportion to its total values, by TVS was maintained in 2015-16 which was 2.44
and on the lower side it was recorded at 1.62 in the year 2009-10. Net sales of VSTillers as
compared to its total assets 1.32. The highest value, in proportion to its total values by VSTillers
was maintained in 2009-10 which was 1.78 and on the lower side it was recorded at 0.82 in the
year 2018-19.

4.23 PERFORMANCE EVALUATION OF COMPANIES

Ranking based on overall performance:
Table 4.23.1 shows the summary of ranking obtained by the selected companies based on the
average performance by the companies during the research period in context to each performance
driver. Ranking were obtained by multiple comparison. At last overall ranking has been allotted
to all the companies based on the least total of all the ranking obtained. The lower the total of the
ranking, better the overall performance by the company. It can be seen from table 4.23, that
Hindustan motors is leading company on overall performance basis, whereas scooters India is
standing second and majestic auto is standing third position. Mahindra & Mahindra is found to be
the poor performer amongst the industry samples during the research period, which shows a lack
of proper management or poor performance in terms of management and business. Further
Maharashtra scooters with good performance stood at 4th position followed by the premier in 5th
position. Kinetic eng. Stood at 6th position followed by eicher motors at 7th position in overall
performance evaluation of cash management. Further ashok Leyland and sundaram clyton with
performance above average stood at 8th and 9th position respectively. SML stood at 10th place with
average performance followed by force motors at 11th position. VSTillers, atul auto and hero
MotoCorp. With performance below average stood at 12th, 13th and 14th position respectively.
Further TATA motors, escort and Bajaj auto followed hero MotoCorp. And positioned at 15th, 16th
and 17th and at last three positions secured by maruti Suzuki, TVS and Mahindra & Mahindra at
18th, 19th and 20th position compare to all other companies.

165
TABLE: 4.23.1 RANKING BASED ON OVERALL PERFORMANCE

Sundaram cly.
Maruti suzuki
Majestic auto
Force motors

Scooters ind.
Kinetic eng.

Tata motors
Hind. Mot.
Hero moto
Eich. Mot.
Company/

Maha. sco
Bajaj auto
Ash. Ley.

VSTillers
Atul auto

premier
M&M
Ratios

Escort

SML

TVS
CLCR 14 6 7 7 18 13 9 11 1 16 20 2 15 10 5 12 3 17 19 4
TLCR 12 5 8 1 15 10 6 9 3 18 20 7 13 14 2 11 16 19 17 4
CFMR 12 17 14 9 15 13 16 1 2 5 19 4 18 3 6 7 10 11 20 8
AER 5 7 11 3 17 12 8 1 13 15 20 9 19 10 2 4 14 18 16 6
CROIC 10 9 5 19 1 2 6 17 8 20 13 12 3 15 11 4 16 18 14 7
FCFOCF 7 18 19 14 12 8 15 6 1 5 20 2 17 3 4 10 11 13 9 16
OI 8 14 19 18 13 11 16 3 9 4 20 7 17 10 5 6 1 2 12 15
CGPR 8 16 14 6 19 18 5 3 20 7 12 2 4 1 13 15 10 9 17 11
EFIR 6 16 17 20 14 10 13 7 1 5 19 2 18 3 4 9 12 11 8 15
P/CF 12 13 18 9 1 17 20 4 6 7 14 8 19 5 2 10 3 15 16 11
CFICR 11 5 2 4 13 10 3 15 1 19 7 16 6 20 9 12 17 18 14 8
OCF/FA 10 11 8 6 18 13 5 3 2 20 19 4 12 15 1 7 17 16 14 9
OCF/TR 11 17 15 8 16 14 13 1 4 6 20 3 18 2 5 7 12 10 19 9
OCF/NI 2 15 19 16 20 6 18 7 8 4 17 11 14 9 3 5 10 1 12 13
ROE 18 11 12 9 5 8 12 3 15 2 10 6 7 1 4 16 17 14 19 20
ROA 16 12 13 6 3 5 13 1 8 11 10 7 4 9 2 19 17 15 20 18
P/E R 4 13 19 11 15 12 20 2 3 6 18 9 17 14 8 7 5 1 10 16
P/CF R 20 17 14 2 16 18 5 10 3 9 7 4 8 12 19 15 1 11 13 6
P/B R 14 7 13 2 3 16 10 5 12 11 4 20 15 8 9 17 1 18 6 19
FLR 6 11 13 18 15 8 19 3 20 2 14 5 17 1 4 12 7 10 9 16
ATOR 5 3 9 4 11 18 8 1 20 15 17 7 14 19 2 13 12 16 10 6
CR 6 11 13 18 15 8 19 3 20 2 14 5 17 1 4 12 7 10 9 16
TOTAL 217 254 282 210 275 250 259 116 180 209 334 152 292 185 124 230 219 273 303 253
RANK
OVERALL
RANK
8 13 17 7 16 11 14 1 4 6 20 3 18 5 2 10 9 15 19 12

166
 For further analysis, we can compare performance of the companies at four different ratios
which includes profitability, liquidity, solvency and efficiency. For these four titles we took one
ratio for each heading and those are return on asset ratio, current ratio, financial leverage ratio and
asset turnover ratio respectively. According to profitability heading return on asset ratio shows
Hindustan motors, scooters ind. And escort as leading companies as they are positioned at 1st, 2nd
and 3rd rank. ashok Leyland, TVS and VSTillers are positioned at last three positions with 18th,
19th and 20th rank and Mahindra & Mahindra stood at 10th position with average performance. To
check liquidity of the companies we took current ratio which shows premier, kinetic eng. And
Hindustan motors as leading companies as they positioned at 1st, 2nd and 3rd. according to this ratio
eicher motors, hero MotoCorp and Maharashtra scooters has lower liquidity as they ranked at last
three position and Tata motors stood at 10th place with average performance. To check solvency
of the companies during the research period we take financial leverage ratio and according to that
ratio premier, kinetic eng. And Hindustan motors as leading companies as they positioned at 1 st,
2nd and 3rd, whereas eicher motors, hero MotoCorp and Maharashtra scooters are positioned at last
three place which are 18th, 19th and 20th rank. For efficiency check of the company’s asset turnover
ratio is there which shows Hindustan motors, scooters ind. And atul auto are leading companies in
efficiency check as they are ranked 1st, 2nd and 3rd. force motors, premier and Maharashtra scooters
are at last three position according to this ratio whereas with the average performance TVS stood
at 10th position.

167
4.24 NORMALITY TEST

Normality test was applied to find out the nature of the data. Normality tests are used to determine
if a data set is well modeled by a normal distribution and to compute how likely it is for a random
variable underlying the data set to be normally distributed. In discriptive statistics terms, one
measures a goodness of fit of a normal model to the data if fit is poor then the data are not well
modeled in that respect by a normal distribution. This study has selected 14 cash flow ratio from
20 companies comparing of two wheers, three wheelers and four whhelers companies of indian
automobile industry. Normality of data is essential to performed the peramateric test. Kolmogorov-
Smirnov and Shapiro-Wilk was used to check the normality. The kolmogorov-smirnov test is a
nonparametric test of the equality of continuous, one-dimentional probability distributions that can
be used to compare a sample with reference probability distribution, or to compare two samples.
It is named after andrey Kolmogorov and nikolai smirnov. The shapiro-wilk test is a test of
normality in frequentist statistics. It was published in 1965 by samuel sanford shapiro and martin
wilk. This test is more appropriate for small sample size (<50 samples), but can also handle sample
sizes as large as 2000. For this reason, we will use the shapiro-wilk test as our numrical means of
assessing normality.

4.24.1 NORMALITY TEST

Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

current liability Coverage

.123 200 .000 .757 200 .000
Ratio

TLCR .085 200 .001 .966 200 .000

CFMR .406 200 .000 .214 200 .000

AER .095 200 .000 .904 200 .000

168
CROIC .396 200 .000 .249 200 .000

FCF/OCF .394 200 .000 .264 200 .000

OI .339 200 .000 .347 200 .000

CGPR .386 200 .000 .173 200 .000

EFIR .395 200 .000 .260 200 .000

P/CFR .342 200 .000 .357 200 .000

CFICR .497 200 .000 .196 200 .000

CFFOA/FA .191 200 .000 .796 200 .000

CFFOA/TR .321 200 .000 .432 200 .000

CFFOA/NI .363 200 .000 .195 200 .000

a. Lilliefors Significance Correction

Test of normality table indicate that P value for all the 14 cash flow ratios is less than 0.05 so it
can be said that all the ratios are statistically signficant at 5 percent level of signficance. Hence
null hypothesis of the normality test rejected and concludeed that data are not normaly distributed.

COMPANY TYPE WISE COMPARISION OF CASH FLOW RATIOS:

4.25 MANN WHITENY U TEST

This test was developed by H B Mann and R Whiteny in the 1940s. the test is used to examine
whether two samples have been drawn from populations with same mean. This test is an alternative
to a T-test for testing the equality of means of two independent samples. The application of a T-
test involves the assumption that the samples are drawn fron the normal population. If the

169
normality assumption is violated, this test can be used as an alternative to a T-test. This is a very
powerful non-parametric test as this can be used both for qualitative and quantative data. This test
is used to compare difference between two independent groups when the dependent variable is
either ordinal or continuous, but not normally ditributed. Mann whiteny u test uses z-test to test
the null hypothesis. For this research study a two tailed hypothesis for a Mann-whiteny test could
be written as:

Ho: There is no signficant difference in the mean score of cash flow ratios of four wheeler
companies and two/thee wheeler companies

H1: There is signficant difference in the mean score of cash flow ratios of four wheeler
companies and two/thee wheeler companies

Indian automobile industry companies mainly devided in to two portion, four wheeler coumpanes
and two/thee wheeler companies. One of the objective of the study is to find out that where cash
flow managemetn practices are same or differenct for these categories of companies. For the same,
14 cash flow ratios of four wheeler companies and two/thee wheeler companies compared through
Mann-Whitney U test as all data of 14 ratios are not normally distributed.

4.25.1 MANN-WHITNEY U TEST

Mann-Whitney U

Mann- Wilcoxon W Z Asymp. Sig.

Whitney U (2-tailed)

current liability Coverage Ratio 4623.000 8718.000 -.803 .422

TLCR 4423.000 8518.000 -1.294 .196

CFMR 3952.000 8047.000 -2.451 .014

170
 AER 4690.000 8785.000 -.638 .523

CROIC 4547.000 10652.000 -.990 .322

FCF/OCF 4026.000 10131.000 -2.269 .023

OI 4223.000 8318.000 -1.785 .074

CGPR 4822.000 8917.000 -.314 .753

EFIR 4307.000 8402.000 -1.579 .114

P/CFR 4032.000 8127.000 -2.254 .024

CFICR 4651.000 8746.000 -.734 .463

CFFOA/FA 4768.000 8863.000 -.447 .655

CFFOA/TR 4036.000 8131.000 -2.245 .025

CFFOA/NI 3949.000 8044.000 -2.458 .014

a. Grouping Variable: industry type

Mann- Whitney U test table shows that p value for CFMR, free cash flow to operating cash flow
ratio, price to cash flow ratio, cash flow from operating activity to total revenue and cash flow
from operating activity to net income is less than 0.05. These ratios are statistically significant at
5 percent level of significance and conclude that mean score of these ratios are different for four
wheeler companies and two/thee wheeler companies. Other ratios have p value higher than 0.05
hence they did not record the statistically difference in the means score for four wheeler companies
and two/thee wheeler companies.

171
4.25.1 MANN-WHITNEY U TEST: CURRENT LIABILITY COVERAGE RATIO

4.25.2 MANN-WHITNEY U TEST: TOTAL LIABILITY COVERAGE RATIO

172
 4.25.3 MANN-WHITNEY U TEST: CASH FLOW MARGIN RATIO

Mean rank of the current liability coverage ratio, total liability coverage ratio and cash flow margin
ratio is founded higher for the four wheeler companies compare to the Two/Three Wheeler
companies. Difference between both categories of the companies is higher for the cash flow
margin ratio which is already founded statistically significant.

4.25.4 MANN-WHITNEY U TEST: ASSET EFFICIENT RATIO

173
 4.25.5 MANN-WHITNEY U TEST: CASH RETURN ON INVESTED CAPITAL

4.25.6 MANN-WHITNEY U TEST: FREE CASH FLOW TO OPERATING CASHFLOW

174
4.25.7 MANN-WHITNEY U TEST: OPERATING INDEX

Mean rank of the asset efficient ratio and operating index is founded higher for the four wheeler
companies compare to the Two/Three Wheeler companies where Mean rank of the cash return on
invested capital and free cash flow to operating cash flow is founded higher for the Two/Three
Wheeler compare to the four wheeler companies. Difference between both categories of the
companies is higher for free cash flow to operating cash flow ratio compare to the other ratio.

4.25.8 MANN-WHITNEY U TEST: CASH GENERATING POWER RATIO

175
4.25.9 MANN-WHITNEY U TEST: EXTERNAL FINANCING INDEX RATIO

4.25.10 MANN-WHITNEY U TEST: PRICE TO CASH FLOW RATIO

For next three set of cash flow ratio namely cash generating power ratio, external financing index
ratio and price to cash flow ratio has higher mean rank for the four wheeler companies compare to

176
two/three wheeler companies. Price to cash flow ratio has recorded the significant difference in
the mean rank of four wheeler companies compare to two/three wheeler companies.

4.25.11 MANN-WHITNEY U TEST: CASH FLOW INTEREST COVERAGE RATIO

4.25.12 MANN-WHITNEY U TEST: CASH FLOW FROM OPERATING ACTIVITY TO

FIXED ASSETS

177
4.25.13 MANN-WHITNEY U TEST: CASH FLOW FROM OPERATING ACTIVITY TO
TOTAL REVENUE

4.25.14 MANN-WHITNEY U TEST: CASH FLOW FROM OPERATING ACTIVITY TO

NET INCOME

Four wheeler companies have the higher mean rank score for the ratio namely Cash flow interest
coverage Ratio, Cash flow from operating activity to fixed assets, Cash flow from operating
activity to total revenue and Cash flow from operating activity to net income compare to two/three
wheeler companies. Cash flow from operating activity to total revenue and Cash flow from
operating activity to net income has significant difference in the mean rank score.

178
4.26 KRUSKAL WALLIS TEST

In ANOVA one of the assumption is that all the involved populations from where the sample are
taken are normally distributed. If this assumption does not hold true, the F-statistic used in
ANOVA becomes invalid. The normality assumptions may not hold true when we are dealing with
ordinal data or when the size of the sample is very small. The kruskal wallis test comes to our
rescue during such situation. This is, in fact, a non-paramrtric counterpart to the one-way ANOVA.
The test is an extension of the Mann-whiteny U test. Both methods require that the scale of the
measurement of a sample value should be at least ordinal. The kruskal wallis test uses the chi-
square to test null hypothesis.

The hypothesis is to be tested in kruskal-wallis test is:

Ho: There is no signficant difference in the mean score of cash flow ratios of different
two/thee wheeler companies (ATUL AUTO, BAJAJ AUTO, HERO MOTOCORP,
MAHARASTRA SCO., KINETIC ENG., MAJESTIC AUTO, SCOOTERS IND., and
SUNDARAM CLY. TVS)

H1: There is signficant difference in the mean score of cash flow ratios of different two/three
wheeler companies (ATUL AUTO, BAJAJ AUTO, HERO MOTOCORP, MAHARASTRA
SCO., KINETIC ENG., MAJESTIC AUTO, SCOOTERS IND., and SUNDARAM CLY.
TVS)

4.26.1 KRUSKAL WALLIS TEST: TWO/THREE WHEELER COMPANY WISE

COMPARISION OF RATIOS

Table Kruskal Wallis Test

Chi-Square Df Asymp. Sig.

current liability Coverage Ratio 56.915 8 .000

TLCR 65.647 8 .000

CFMR 47.744 8 .000

AER 59.513 8 .000

179
 CROIC 33.603 8 .000

FCF/OCF 12.041 8 .149

OI 22.709 8 .004

CGPR 3.973 8 .860

EFIR 12.328 8 .137

P/CFR 30.146 8 .000

CFICR 76.668 8 .000

CFFOA/FA 65.392 8 .000

CFFOA/TR 47.618 8 .000

CFFOA/NI 39.566 8 .000

Grouping Variable: Two/three wheeler Company

It is very cleared that there is significant difference in the cash flow ratios of two/three wheeler
and four wheeler companies. Now one of the objective of study is to find out whether within
two/three wheeler companies is there any difference ?. For the same, Cash flow ratios of the 9
companies are compared through Kruskal Wallis Test and also one to one comparision between
companies also carried out to find out the diffrencees.

180
4.27.1 KRUSKAL WALLIS TEST: MEAN RANK ACROSS OF TWO/THREE WHEELER
COMPANIES

Table Mean Rank across of two/three wheeler company

HERO MOTOCORP

SUNDARAM CLY.
MAJESTIC AUTO

SCOOTERS IND.
MAHARASTRA

KINETIC ENG.
BAJAJ AUTO
ATUL AUTO

SCO.

TVS
current liability
67.60 74.40 68.90 13.90 22.40 44.00 23.80 46.30 48.20
Coverage Ratio

TLCR 69.90 76.50 72.20 12.10 24.40 35.20 23.00 44.60 51.60

CFMR 51.00 76.20 66.50 10.90 28.30 51.00 29.00 52.40 44.20

AER 65.40 70.90 76.00 19.70 20.90 31.10 23.20 46.10 56.20

CROIC 59.30 71.00 45.10 69.10 31.80 34.90 24.30 36.10 37.90

FCF/OCF 48.30 45.10 54.70 26.70 44.80 46.20 59.10 51.50 33.10

OI 51.10 43.80 52.80 25.90 36.50 37.60 32.60 60.20 69.00

CGPR 42.00 48.80 44.20 41.60 55.30 37.30 50.40 40.30 49.60

EFIR 44.90 40.40 30.70 63.80 46.80 44.60 47.30 34.20 56.80

P/CFR 64.40 48.50 32.60 31.40 44.30 48.30 20.50 71.70 47.80

CFICR 64.70 80.30 79.40 11.70 24.00 33.50 19.80 41.70 54.40

CFFOA/FA 56.90 78.90 77.90 11.20 25.10 36.70 25.30 42.90 54.60

CFFOA/TR 51.10 73.90 70.70 13.40 26.20 49.70 27.60 51.50 45.40

CFFOA/NI 53.40 56.10 54.50 25.80 37.40 22.40 25.10 61.00 73.80

181
Kruskal Wallis test table shows that p value for all the cash flow ratio except free cash flow to
operating cash flow, cash generating power ratio and external financing index ratio is less than
0.05. These ratios are statistically significant at 5 percent level of significance and conclude that
mean score of these ratios are different for two/three wheeler companies. Where p value of free
cash flow to operating cash flow, cash generating power ratio and external financing index ratio is
not less than 0.05 so it is not statistically significant hence it can be said that mean rank for these
cash flow ratio are not significantly different for two/three wheeler companies.

Mean Rank across of two/three wheeler company for all the cash flow ratio shows that there is
significant difference in mean rank. Baja Auto and Hero MotoCorp has the comparative higher
mean rank in all the cash flow ratios where Maharashtra Sco. has the lower mean rank compare to
other two/three wheeler companies?

Following figure, the individual comparison of each cash flow ratio of all the 9 two/three wheeler
companies. Node indicates the mean rank where lines show the comparative relationship with the
other company. Black line indicates that there is no significant difference in the mean rank of
connecting black line companies where Golden line indicate that there is significant difference in
the mean rank of connecting Golden line companies.

Figure 1 current liability Coverage Ratio

182
Comparison of Current liability coverage ratio indicates that scooters ind., kinetic Eng.
Maharashtra sco. have the significant different mean score compare to the company’s hero
MotoCorp, Bajaj auto and Atul auto.

Figure 2 total liability Coverage Ratio

Figure 3 cash flow margin ratio

183
Figure 4 asset efficient ratio

Comparison of different companies regarding total liability coverage ratio, cash flow margin ratio
and asset efficiency ratio conclude that there is more deviation in the mean rank within two/three
wheeler companies as it shows the significant amount of golden line in the figures.

Figure 5 cash return on invested capital

184
Figure 6 operating index

Figure 7 price to cash flow ratio

Cash return on invested capital, operating index and price to cash flow ratio indicate that there is
no much deviation in the mean rank. Cash return invested capital three difference pair of company,
operating index has one difference pair in mean rank and price to cash flow ratio has four
difference pair in mean rank.

185
Figure 8 cash flow int. cov. Ratio

Figure 9 cash flow from operating activity to fixed assets

186
Figure 10 cash flow from operating activity to total revenue

Figure 11 cash flow from operating activity to net income

Comparison of different companies regarding Cash flow int. cov. Ratio, Cash flow from operating
activity to fixed assets, Cash flow from operating activity to total revenue and Cash flow from
operating activity to net income clearly indicate the mean rank difference among companies. Cash
flow int. cov. Ratio, Cash flow from operating activity to fixed assets, Cash flow from operating

187
activity to total revenue comprise of more deviated mean rank where Cash flow from operating
activity to net income has only four significant different mean rank pair.

Overall it can be concluding that there is significant deviation in the almost all the cash flow ratio
across various two/three wheeler companies.

4.28 KRUSKAL WALLIS TEST

Ho: There is no signficant difference in the mean score of cash flow ratios of different four
wheeler companies (ASHOK LEYLAND, EICHER MOTORS, ESCORT, FORCE
MOTORS, HINDUSTAN MOTORS, MAHINDRA &MAH., MARUTI SUZUKI,
PREMIER, SML, TATA MOTORS and VSTILLERS)

H1: There is signficant difference in the mean score of cash flow ratios of different four
wheeler companies (ASHOK LEYLAND, EICHER MOTORS, ESCORT, FORCE
MOTORS, HINDUSTAN MOTORS, MAHINDRA &MAH., MARUTI SUZUKI,
PREMIER, SML, TATA MOTORS and VSTILLERS))

4.28.1 KRUSKAL WALLIS TEST: FOUR WHEELER COMPANY WISE

COMAPARISION OF RATIOS

Kruskal Wallis Test

Chi-Square Df Asymp. Sig.

CLCR 66.137 10 .000

TLCR 66.832 10 .000

CFMR 32.235 10 .000

AER 43.890 10 .000

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 CROIC 10.450 10 .402

FCF/OCF 12.181 10 .273

OI 12.200 10 .272

CGPR 6.851 10 .739

EFIR 12.082 10 .280

P/CFR 41.255 10 .000

CFICR 69.163 10 .000

CFFOA/FA 60.872 10 .000

CFFOA/TR 31.268 10 .001

CFFOA/NI 25.838 10 .004

Grouping Variable: Four wheeler Company

It is also obseved that there is significant difference in the cash flow ratios of four wheeler
companies. Now one of the objective of study is to find out whether within four wheeler companies
is there any difference ?. For the same, Cash flow ratios of the 11 companies are compared through
Kruskal Wallis Test and also one to one comparision between companies also carried out to find
out the diffrencees.

189
4.29.1 KRUSKAL WALLIS TEAT: MEAN RANK ACROSS OF FOUR WHEELER
COMPANIES

Mean Rank across of four wheeler company

HINDUSTAN MOTORS

MAHINDRA &MAH.
ASHOK LEYLAND

EICHER MOTORS

MARUTI SUZUKI
FORCE MOTORS

TATA MOTORS

VSTILLERS
PREMIER
ESCORT

SML
CLCR 51.40 95.90 33.50 48.40 15.50 76.10 91.70 37.40 47.00 36.70 76.90

TLCR 49.70 96.10 37.10 53.10 16.60 72.30 94.60 31.30 50.40 34.20 75.10

CFMR 58.70 93.90 32.70 40.80 39.30 70.70 72.50 58.00 45.70 42.30 55.90

AER 58.00 93.00 35.10 45.10 33.50 70.10 86.90 33.30 57.50 37.50 60.50

CROIC 61.50 48.20 58.20 51.70 50.00 64.20 73.80 41.60 52.70 41.90 66.70

FCF/OCF 55.30 48.40 51.70 36.70 61.80 56.10 48.50 48.40 80.00 62.80 60.80

OI 71.80 53.30 54.20 71.70 47.70 56.80 68.10 40.00 55.80 50.40 40.70

CGPR 43.30 72.60 54.50 48.10 59.30 58.90 53.40 60.10 49.50 47.90 62.90

EFIR 58.00 63.50 52.30 70.90 59.40 53.70 65.60 64.60 35.00 41.30 46.20

P/CFR 52.40 70.10 93.10 41.60 45.80 87.40 24.10 51.10 40.40 53.20 51.30

CFICR 47.30 100.7 39.70 61.80 17.20 73.20 90.70 25.80 46.90 35.50 71.70

CFFOA/FA 53.40 101.4 33.60 42.10 27.20 83.30 78.60 28.40 60.20 35.00 67.30

CFFOA/TR 57.60 93.00 33.60 41.10 37.80 71.00 71.70 59.10 46.60 42.30 56.70

CFFOA/NI 80.80 54.70 24.60 70.90 42.10 55.60 64.00 37.40 61.50 68.10 50.80

190
Kruskal Wallis test table shows that p value of current liability Coverage Ratio, total liability
Coverage Ratio, cash flow margin ratio, asset efficient ratio, price to cash flow ratio, Cash flow
int. cov. Ratio, Cash flow from operating activity to fixed assets, Cash flow from operating activity
to total revenue and Cash flow from operating activity to net income is less than 0.05. These ratios
are statistically significant at 5 percent level of significance and conclude that mean score of these
ratios are different for four wheeler companies.

Where p value of cash returns on invested capital, free cash flow to operating cash flow operating
index, cash generating power ratio and external financing index ratios not less than 0.05 so it is
not statistically significant hence it can be said that mean rank for these cash flow ratio are not
significantly different for four wheeler companies.

Mean Rank across of four Wheeler Company for all the cash flow ratio shows that there is
significant difference in mean rank. Eicher Motor and Maruti Suzuki has the comparative higher
mean rank in all the cash flow ratios where Hindustan Motors and Premier has the lower mean
rank compare to other four wheeler companies.

Following figure, the individual comparison of each cash flow ratio of all the 11 four wheeler
companies. Node indicates the mean rank where lines show the comparative relationship with the
other company. Black line indicates that there is no significant difference in the mean rank of
connecting black line companies where Golden line indicate that there is significant difference in
the mean rank of connecting Golden line companies.

191
Figure 12 current liability Coverage Ratio

Figure 13 total liability Coverage Ratio

Comparison of Current liability coverage ratio and total liability ratio indicates that Maruti Suzuki
and Eicher Motor have the significantly different mean score compare to the other companies.

192
Figure 14 cash flow margin ratio

Figure 15 asset efficient ratio

193
Figure 16 price to cash flow ratio

In the cash flow margin ratio, it is observed that only Eicher motor has the different mean rank
compare to other companies, where Maruti Suzuki and Eicher motor has different as well as higher
mean rank for the asset efficiency ratio. Price to cash flow ratio has record only four pair of
difference which is statistically significant.

Figure 17 cash flow int. cov. Ratio

194
Figure 18 cash flow from operating activity to fixed assets

Individual comparison figure of the cash flow int. cov. Ratio and cash flow from operating activity
to fixed assets shows the bunch of scattered golden line which indicate that there is more deviation
in mean rank of these cash flow ratio among the four wheeler companies.

Figure 19 cash flow from operating activity to total revenue

195
Figure 20 cash flow from operating activity to net income

Cash flow from operating activity to total revenue figure indicate that eicher motor has the
significantly different mean rank compare to four other companies as it makes the four different
golden line. Where for cash flow from operating activity to net income, only one pair Ashok
Leyland to Escort recorded the statistically significant difference in the mean rank. Overall it can
be concluding that majority of the cash flow ratio are different within four wheeler automobile
industry also.

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REGRESSION ANALYSIS

4.30 Impact of the cash flow ratio on profitability ratio

Regression analysis was performed to find out the impact of the cash flow ratio on the profitability
ratio. Profitability ratio namely return on equity, return on asset and EPS taken as the dependent
variable and all the 14 cash flow ratio was inserted as the independent variables.

4.30.1 Regression analysis Profitability

Regression analysis Profitability

Independent variable

Model 1 Model 2 Model 3

Return on Equity Return on assets EPS

Dependent Variable Beta value Sig Beta value Sig Beta value Sig

(Constant) 30.628 .002 10.308 .000 23.000 .005

CLCR -.053 .705 .101 .423 -.441 .000

TLCR .080 .643 .221 .157 1.156 .000

CFMR .045 .580 -.170 .021 .015 .817

AER -.092 .580 -.019 .897 -.300 .029

CROIC .079 .261 .133 .036 -.202 .001

FCF/OCF -.356 .572 -.244 .668 -1.063 .040

OI -.040 .596 -.047 .486 -.028 .645

CGPR .007 .924 -.039 .545 .052 .379

197
 EFIR -.318 .617 -.203 .724 -1.083 .039

P/CFR .124 .146 .300 .000 -.087 .215

CFICR -.003 .975 -.008 .929 -.004 .961

CFFOA/FA .008 .962 -.033 .831 -.056 .687

CFFOA/TR .284 .001 -.307 .000 .028 .699

CFFOA/NI -.054 .468 -.068 .309 -.045 .461

R square 0.115 0.278 0.407

F Value 1.71 5.092 9.053

Model Sig. 0.057 0.000 0.000

Model 1 measure the impact of the cash flow ratio on the return on equity. Overall all the cash
flow ratio explains only 11.5 percent variance in the return on equity. Model 1 is also not
statistically significant at 5 percent level of significance as it has f vale 1.71 and p value 0.057.
Coefficient beta for the model indicate that Cash flow from operating activity to total revenue is
statistically significant with positive impact and standardized beta weight of 0.284.

Where, Model 2 measures the impact of the cash flow ratio on the return on assets. R square value
of the model is 0.278 which indicate that all the cash flow ratio explained 27.8 percent of the
variance in return on assets. Overall model is significant with F value 5.092 and p value 0.000.
Coefficient beta for the model indicate that Cash flow from operating activity to total revenue and
cash flow margin ratio has the negative impact on the return on assets with the standardized beta
weight of -0.307 and -0.170 respectively where price to cash flow ratio and cash return on invested
capital has the positive impact with the beta weight of 0.300 and 0.133 respectively.

198
Model 3 measure the impact of the cash flow ratio on the EPS. Overall all the cash flow ratio
explains 40.7 percent variance in the EPS. Model 3 is statistically significant at 5 percent level of
significance as it has f vale 9.053 and p value 0.000. Coefficient beta for the model indicate that
external financing index ratio, free cash flow to operating cash flow, cash return on invested
capital, asset efficient ratio and current liability Coverage Ratio has negative impact on the EPS
with the coefficient weight of -1.083, -1.063, -.202, -.300 and -.441 respectively and coefficient
beta for the model indicate that total liability coverage ratio has positive impact on EPS with the
standardized beta weight of 1.156.

Overall multiple regression analysis concludes that cash flow ratio has the moderate to low impact
on the profitability ratio in Indian automobile industry.

REGRESSION ANALYSIS

4.31 Impact of the cash flow ratio on Valuation ratio

Regression analysis was performed to find out the impact of the cash flow ratio on the valuation
ratio. Valuation ratio namely PE ratio, P/CF ratio and PB ratio taken as the dependent variable and
all the 14 cash flow ratio was inserted as the independent variables

4.31.1 Regression analysis Valuation

Regression analysis Valuation

Independent Variable

Model 1 Model 2 Model 3

PE Ratio P/CF Ratio PB Ratio

Dependent Variable Beta value Sig Beta value Sig Beta value Sig

(Constant) 34.151 .000 -1408.406 .597 43.640 .005

CLCR .028 .697 -.062 .676 .040 .764

199
 TLCR .052 .560 .129 .478 .111 .493

CFMR .006 .881 .008 .927 .014 .854

AER .058 .499 -.128 .466 .105 .502

CROIC .009 .799 .000 .997 -.013 .846

FCR/OCR -.240 .457 .027 .968 .715 .227

OI .097 .012 -.002 .980 -.479 .000

CGPR .012 .743 .066 .385 .018 .784

EFIR -.261 .424 .116 .863 .750 .210

P/CFR -.024 .582 -.010 .910 .111 .166

CFICR .063 .200 -.033 .745 .036 .685

CFFOA/FA -.165 .060 .069 .701 -.231 .150

CFFOA/TR -.030 .500 .034 .713 -.044 .593

CFFOA/NI -.844 .000 .004 .963 -.174 .013

R square 0.768 0.018 0.218

F Value 43.709 0.237 3.693

Model Sig. 0.000 0.998 0.000

Model 1 measures the impact of the cash flow ratio on the PE ratio. R square value of the model
is 0.768 which indicate that all the cash flow ratio explained 76.8 percent of the variance in PE
ratio. Overall model is significant with F value 43.709 and p value 0.000. Coefficient beta for the
model indicate that Cash flow from operating activity to net income has the negative impact on
the PE ratio with the standardized beta weight of -0.844 where operating index has the positive
impact with the beta weight of 0.097.

200
Model 2 measure the impact of the cash flow ratio on the P/CF ratio. Overall all cash flow ratios
explain only 1.8 percent variance in the P/CF ratio. Model 2 is also not statistically significant at
5 percent level of significance as it has f vale 0.237 and p value 0.998. Coefficient beta for the
model indicates that none of the ratio has the statistically significant impact on P/CF ratio.

Model 3 measure the impact of the cash flow ratio on PB ratio. Overall all the cash flow ratio
explains 21.8 percent variance in the PB ratio. Model 3 is statistically significant at 5 percent level
of significance as it has f vale 3.693 and p value 0.000. Coefficient beta for the model indicate that
cash flow from operating activity to net income and operating index has negative impact on PB
ratio with the coefficient weight of -.174 and -.479 respectively.

Overall regression analysis concludes that cash flow ratio also has the moderate to low impact on
the valuation ratio in Indian automobile industry.

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 INTRODUCTION

This chapter is the concluding part of the research. It gives the emerging conclusions based on the
analysis carried out during the study. Heartfelt attempt has been made to summarize and conclude
the whole study and give some fruitful suggestions (outcomes) to achieve the objectives of the
study. This chapter is divided into three parts; (1) Summary; (2) Findings and (3) Suggestions
and (4) conclusion.

5.1 SUMMARY

5.1.1 SUMMARY OF RANKING

TABLE 5.1.1 SUMMARY OF RANKING

Maharashtra scooters
Hindustan Motors
Hero MotoCorp
Ashok Leyland

Maruti Suzuki
Eicher motors

Majestic auto
Force motors

Scooters ind.
Kinetic Eng.

Tata motors
Company/

Bajaj auto

VSTillers
Atul auto

ram cly.
premier
M&M
Ratios

Escort

SML

Sund

TVS
OVERAL
L RANK 8 13 17 7 16 11 14 1 4 6 20 3 18 5 2 10 9 15 19 12

Table 5.1.1 shows the summary of rankings obtained by the selected companies based on the
average performance by the companies during the research period in context to each performance
driver. Rankings were obtained by Multiple Comparison. At last an overall ranking has been
allotted to all the companies based on the least total of all the rankings obtained. The lower the
total of the rankings, better the overall performance by a company. Hence, Hindustan Motors is
holding first ranking position and Mahindra and Mahindra at last.

202
 5.1.2 SUMMARY BASED ON NORMALITY TEST

Normality tests are used to determine if a data set is well modeled by a normal distribution and to
compute how likely it is for a random variable underlying the data set to be normally distributed.
This study has selected 14 cash flow ratio from 20 companies comparing of two wheers, three
wheelers and four whhelers companies of indian automobile industry.

TABLE 5.1.2 SUMMARY BASED ON NORMALITY TEST

RATIOS
current liability Coverage Ratio

operating

cash flow from operating

operating
free cash flow to operating cash
cash return on invested capital

external financing index ratio

total liability Coverage Ratio

cash generating power ratio

cash flow int. cov. Ratio

activity to total revenue

price to cash flow ratio
cash flow margin ratio

activity to fixed assets

activity to net income

from

from
asset efficient ratio

operating index

flow

flow
flow

cash

cash
Kolmog Sig .000 .001 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
orov-
Smirnov
Shapiro- .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Wilk Sig
Test of normality table indicate that P value for all the 14 cash flow ratios is less than 0.05 so it
can be said that all the ratios are statistically signficant at 5 percent level of signficance. Hence
null hypothesis of the normality test rejected and concludeed that data are not normaly distributed.

5.1.3 SUMMARY BASED ON MANN WHITNEY U TEST

This is a very powerful non-parametric test as this can be used both for qualitative and quantative
data. This test is used to compare difference between two independent groups when the dependent
variable is either ordinal or continuous, but not normally ditributed.

203
TABLE: 5.1.3 SUMMARY BASED ON MANN WHITNEY U TEST

current liability Coverage Ratio

operating

cash flow from operating

cash flow from operating

free cash flow to operating cash
cash return on invested capital

external financing index ratio

total liability Coverage Ratio

cash generating power ratio

cash flow int. cov. Ratio

activity to total revenue

price to cash flow ratio
cash flow margin ratio

activity to fixed assets

activity to net income

from
asset efficient ratio

operating index

flow
RATIOS

flow

cash
0.422

0.196

0.014

0.523

0.322

0.023

0.074

0.753

0.114

0.024

0.463

0.655

0.025

0.014
Sig.

Mann- Whitney U test table shows that p value for cash flow margin ratio, free cash flow to
operating cash flow ratio, price to cash flow ratio, cash flow from operating activity to total revenue
and cash flow from operating activity to net income is less than 0.05. These ratios are statistically
significant at 5 percent level of significance and conclude that mean score of these ratios are
different for four wheeler companies and two/thee wheeler companies. Other ratios have p value
higher than 0.05 hence they did not record the statistically difference in the means score for four
wheeler companies and two/thee wheeler companies.

5.1.4 SUMMARY BASED ON KRUSKAL WALLIS TEST

The kruskal wallis test is, in fact, a non-paramrtric counterpart to the one-way ANOVA. The test
is an extension of the Mann-whiteny U test. Both methods require that the scale of the
measurement of a sample value should be at least ordinal.

204
 TABLE: 5.1.4 Two/ three Wheeler Company wise comparission of cash flow ratios
current liability Coverage Ratio

operating

operating

operating
free cash flow to operating cash
cash return on invested capital

external financing index ratio

total liability Coverage Ratio

cash generating power ratio

cash flow int. cov. Ratio

activity to total revenue

price to cash flow ratio
cash flow margin ratio

activity to fixed assets

activity to net income

from

from

from
asset efficient ratio

operating index

flow

flow

flow
RATIOS

flow

cash

cash

cash
0.000 0.000 0.000 0.000 0.000 0.149 0.004 0.860 0.137 0.000 0.000 0.000 0.000 0.000
Sig.

It is very cleared that there is significant difference in the cash flow ratios of two/three wheeler
and four wheeler companies. These ratios are statistically significant at 5 percent level of
significance and conclude that mean score of these ratios are different for four wheeler companies
and two/thee wheeler companies.

Mean Rank across of two/three wheeler company

Now one of the objective of study is to find out whether within two/three wheeler companies is
there any difference? For the same, Cash flow ratios of the 9 companies are compared through
Kruskal Wallis Test and also one to one comparision between companies also carried out to find
out the diffrencees.

In such test total 11 ratios are compared out of 14 ratios according to their significance results. Out
of those 11 ratios, 7 ratios has more deviated mean rank as their figures shows more than 4 golden
lines and remaining 4 ratios has 4 or less than 4 golden lines in their figures.

205
 TABLE: 5.1.5 Four Wheeler Company wise comparission of cash flow ratios
current liability Coverage Ratio

operating

operating

operating
free cash flow to operating cash
cash return on invested capital

external financing index ratio

total liability Coverage Ratio

cash generating power ratio

cash flow int. cov. Ratio

activity to total revenue

price to cash flow ratio
cash flow margin ratio

activity to fixed assets

activity to net income

from

from

from
asset efficient ratio

operating index

flow

flow

flow
RATIOS

flow

cash

cash

cash
0.000 0.000 0.000 0.000 0.402 0.273 0.272 0.739 0.280 0.000 0.000 0.000 0.001 0.004
Sig.

It is very cleared that there is significant difference in the cash flow ratios of four wheeler
companies. These ratios are statistically significant at 5 percent level of significance and conclude
that mean score of these ratios are different for four wheeler companies and two/thee wheeler
companies.

Mean Rank across of four wheeler company

Now one of the objective of study is to find out whether within four wheeler companies is there
any difference ?. For the same, Cash flow ratios of the 11 companies are compared through Kruskal
Wallis Test and also one to one comparision between companies also carried out to find out the
diffrences.

In such test total 9 ratios are compared out of 14 ratios according to their significance results.
Among those 9 ratios, 6 ratios has more deviated mean rank as their figures shows more than 4
golden lines and remaining 3 ratios has 4 or less than 4 golden lines in their figures.

206
5.1.6Impact of the cash flow ratio on profitability ratio

RETURN ON EQUITY

Overall all the cash flow ratio explains only 11.5 percent variance in the return on equity. It is not
statistically significant at 5 percent level of significance as it has f vale 1.71 and p value 0.057.
Coefficient beta for the model indicate that Cash flow from operating activity to total revenue is
statistically significant.

RETURN ON ASSET

Overall model is significant with F value 5.092 and p value 0.000. Coefficient beta for the model
indicate that Cash flow from operating activity to total revenue has the negative impact on the
return on assets and price to cash flow ratio and cash return on invested capital has the positive
impact.

EARNING PER SHARE

Overall all the cash flow ratio explains 40.7 percent variance in the EPS. Model 3 is statistically
significant at 5 percent level of significance as it has f vale 9.053 and p value 0.000. Coefficient
beta for the model indicate that external financing index ratio, free cash flow to operating cash
flow, cash return on invested capital, asset efficient ratio and current liability Coverage Ratio has
negative impact on the EPS.

5.1.6 Impact of the cash flow ratio on Valuation ratio

PE RATIO

R square value of the model is 0.768 which indicate that all the cash flow ratio explained 76.8
percent of the variance in PE ratio. Overall model is significant with F value 43.709 and p value
0.000. Coefficient beta for the model indicate that Cash flow from operating activity to net income
has the negative impact on the PE ratio.

P/CF RATIO

Overall all cash flow ratios explain only 1.8 percent variance in the P/CF ratio. Model 2 is also not
statistically significant at 5 percent level of significance as it has f vale 0.237 and p value 0.998.

207
Coefficient beta for the model indicates that none of the ratio has the statistically significant impact
on P/CF ratio.

PB RATIO

Overall all the cash flow ratio explains 21.8 percent variance in the PB ratio. Model 3 is statistically
significant at 5 percent level of significance as it has f vale 3.693 and p value 0.000. Coefficient
beta for the model indicate that cash flow from operating activity to net income and operating
index has negative impact on PB ratio.

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5.2 FINDINGS

5.2.1 FINDINGS OF RANKING

Average value of operating cash flow maintained by the industry is 0.288 of the current
liability, 0.22 of the total liability and -0.05 of the net sales during the research period. Asset
efficient ratio and cash return on invested capital are found out to be 0.09 and 1.06 respectively
during research period. Average value of free cash flow maintained by the industry at 0.95 of the
operating cash flow whereas operating index and cash generating power ratio stood at 0.53 and 6.1
respectively during research period. Average financing cash flow maintain by the industry is at
-0.89 of the operating cash flow. Price to cash flow ratio, cash flow interest coverage ratio is stood
at 1.03 and -566.9 respectively. Cash flow from operating activity to fixed assets found out to be
0.30 times per year during the research period. Cash flow from operating activity to total revenue
stood at 0.08 per year whereas cash flow from operating activity to net income maintained at 1.64
during the research period. Average ROE maintained by the industry is 0.33 of the total values
whereas total income maintained at 0.14 of the total assets. By analyzing valuation ratios price
to earnings ratio maintained at 13.26 and price to cash flow ratio stood at -13.62 during the
research period. Average market price per share maintained at 43.62 of the book value per share
during the research period. To check the solvency of the industry we select financial leverage
ratio as performance driver which shows average value of 0.26 during the research period.
Average asset turnover ratio maintained by the industry is 1.19 of the total values whereas average
current asset maintained at 1.19 of the current liabilities.

By overall performance ranking Hindustan motors is leading company on overall

performance basis, whereas scooters India is standing second and majestic auto is standing third
position. Mahindra & Mahindra is found to be the worst performer amongst the industry samples
during the research period, which shows a lack of proper management or poor performance in
terms of management and business. By comparing performance of the companies at four different
ratios which includes profitability, liquidity, solvency and efficiency. For these four titles we took
one ratio for each heading and those are return on asset ratio, current ratio, financial leverage ratio
and asset turnover ratio respectively. According to profitability heading return on asset ratio shows
Hindustan motors, scooters ind. And escort as leading companies as they are positioned at 1st, 2nd
and 3rd rank. To check liquidity of the companies we took current ratio which shows premier,

209
kinetic Eng. And Hindustan motors as leading companies as they positioned at 1st, 2nd and 3rd. To
check solvency of the companies during the research period we take financial leverage ratio and
according to that ratio premier, kinetic Eng. And Hindustan motors as leading companies as they
positioned at 1st, 2nd and 3rd. For efficiency check of the company’s asset turnover ratio is there
which shows Hindustan motors, scooters ind. And atul auto are leading companies in efficiency
check as they are ranked 1st, 2nd and 3rd.

5.2.1(A) FINDINGD: CURRENT LIABILITY COVERAGE RATIO

Except for the year 2018-19, Ashok Leyland shows mixed or fluctuating trend with positive values
and it shows highest value in the year 2017-18. Atul auto also shows fluctuating trend during the
research period and in the year of 2016-17 it stood at highest. Bajaj auto and Eicher motors are at
the peak point in the starting year of research period after that it is fluctuating with positive values.
Escort company showing decreasing trend till the year 2014-15 after that it shows increasing trend
but at the last year it is performing with negative values. Force motors shows negative value in the
year 2011-12 and it stood highest in the year 2018-19 which is the last year of the research period.
Hero MotoCorp showing highest value in 2011-12 and other than this year it shows different
pattern. In most of the year of research period Hindustan motors showing negative values and in
2014-15 it is showing highest figure. Similar to Hindustan motors, Maharshtra scooters and kinetic
Eng. Also stood with highest negative values during the research period. Mahindra & Mahindra
shows fluctuating trend with the positive value and stood highest in the year 2009-10. Performance
of majestic auto vary from year to year during research period. Maruti Suzuki also performs like
Mahindra & Mahindra as it is highest in 2009-10 and other than that it is vary with positive values.
Premier, scooters ind. And SML performing with the more negative values over the period of
research whereas Sundaram clayton and TATA motors showing fluctuating trend with only one
negative value in research period. TVS and VSTillers showing different trend with all positive
values and stood highest in the year 2009-10 and 2015-16 respectively.

210
5.2.1(B) FINDINGS: TOTAL LIABILITY COVERAGE RATIO

For this particular ratio Ashok Leyland shows seesaw pattern for the research period with positive
values except for the year 2018-19 which is showing negative value. Atul auto, Bajaj auto and
Eicher motors are showing mix match pattern by increasing or decreasing values throughout the
research period but with the positive values and they are stood at their best in 2016-17, 2015-16
and 2014-15 respectively. Further escort and force motors performs like Ashok Leyland, they are
fluctuating throughout the research period but in 2018-19 and 2011-12 they turn negative. Hero
MotoCorp is showing almost increasing trend except for the last year of research period which is
2018-19. Hindustan motors is performing very bad as it showing negative values for 6 years and
it stand great at 2014-15. Maharashtra scooters and kinetic Eng. Also performing with the negative
values in all the years of research period except 2017-18 and 2018-19. Further Mahindra &
Mahindra and Maruti Suzuki are performing much better than previous companies as they are
performing with positive values for whole research period and stood highest at 2017-18 and 2015-
16 respectively whereas majestic auto, premier and SML companies performing at their best with
positive values in more than half research period. Scooters ind. Stood at highest in 2013-14 other
than that for most of the years it showing negative values. Further Sundaram clayton, TATA
motors, TVS AND VSTillers performing good compares to other companies as they perform with
positive values and stands their best in 2009-10, 2009-10, 2015-16 and 2013-14 respectively.

5.2.1(C) FINDINGS: CASH FLOW MARGIN RATIO

For cash flow margin ratio all the companies are showing fluctuating trend. From all the companies
ashok Leyland, escort, force motors, Sundaram clayton and VSTillers are showing good
performance with minimum negative values in research period whereas Hindustan motors,
Maharashtra scooters, kinetic Eng., majestic auto, premier, and scooters India showing average
performance compare to other companies as they perform with negative values in most of the years
during research period. Other than these companies all the companies are performing great with
positive values in all the research period years. If companies are compared by mean score which
indicated average overall performance of the companies than the highest mean is 0.24 which is of
premier and lowest mean score held by Maharashtra scooters which is -1.77 so on the basis of that
we can say that premier company’s average performance is good and Maharashtra scooters

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company’s average performance is bad compare to other companies. Further comparison on the
basis of standard deviation, maximum value is of Hindustan motors with 1st rank position and
minimum value is of TVS with the last rank position.

5.2.1(D) ASSET EFFICIENT RATIO

Atul auto, Bajaj auto, eicher motors, hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki and
TVS are excellent performer for this ratio as they all are showing positive values throughout the
years of research period. Compare to these companies ashok Leyland, escort, force motors,
Hindustan motors, majestic auto, premier, SML, Sundaram clayton, TATA motors and VSTillers
are average performer as they all showing at least one negative result of this ratio during research
period. Other than these companies all other companies are performing below average as they all
are performing with negative values in most of the years of research period. If companies are
compared by mean score which indicated average overall performance of the companies than the
highest mean is 0.27 which is of eicher motors and lowest mean score held by Hindustan motors
which is -0.13 so on the basis of that we can say that premier company’s average performance is
good and Maharashtra scooters company’s average performance is bad compare to other
companies. Further comparison on the basis of standard deviation, maximum value is of Hindustan
motors with 1st rank position and minimum value is of scooters India with the last rank position.

5.2.1(E) CASH RETURN ON INVESTED CAPITAL

In this ratio escort, force motors, hero MotoCorp, premier, scooters India, SML and TATA motors
are performing below average as all these companies has more years of negative values during
research period whereas ashok Leyland, atul auto, Bajaj auto, Hindustan motors, kinetic Eng.,
Mahindra & Mahindra, majestic auto, Maruti Suzuki, Sundaram clayton and TVS are average
performer for this particular ratio as they have less negative values during the research period.
Other than theses company all other companies are performing at their best with the all positive
values during research period. If companies are compared by mean score which indicated average
overall performance of the companies than the highest mean is 15.26 which is of escort and lowest
mean score held by force motors which is -13.46 so on the basis of that we can say that premier

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company’s average performance is good and Maharashtra scooters company’s average
performance is bad compare to other companies. Further comparison on the basis of standard
deviation, maximum value is of escort with 1st rank position and minimum value is of kinetic Eng.
with the last rank position.

5.2.1(F) FREE CASH FLOW TO OPERATING CASH FLOW

Hero MotoCorp, is perfectly going on its way towards a better future. Cash is about everything
one needs to have with and companies showing a better cash generating capacity can’t be stopped
by anyone except the market trend and scenario. For this ratio average performer companies are
atul auto, Bajaj auto, eicher motors, Mahindra & Mahindra, Maruti Suzuki, scooters India, SML,
Sundaram clayton, TVS and VSTillers. Other than these companies all other companies are
performing below average as they are performing with negative values for more than one year
during research period. If companies are compared by mean score which indicated average overall
performance of the companies than the highest mean is 10.85 which is of Maharashtra scooters
and lowest mean score held by premier which is -1.50 so on the basis of that we can say that
Maharashtra scooters company’s average performance is good and premier company’s average
performance is bad compare to other companies. Further comparison on the basis of standard
deviation, maximum value is of Maharashtra scooters with 1st rank position and minimum value
is of Mahindra & Mahindra with the last rank position.

5.2.1(G) OPERATING INDEX

Sundaram clayton stands at 1st rank with highest standard deviation. Overall performance of all
the companies are good compares to other ratios as most of the companies are performing with the
positive values during the research period. Ashok Leyland, escort, force motors, premier, SML,
Sundaram clayton and VSTillers are average performer as they all have at least one year of
negative value during research period. Further Hindustan motors, Maharashtra scooters, kinetic
Eng., majestic auto, scooters India and TATA motors are performing below average as they all are
performing with negative values in most of the years during the research period. Further remaining
all the companies are performing very well compare to other companies as they performing

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positively during the research period. If companies are compared by mean score which indicated
average overall performance of the companies than the highest mean is 5.90 which is of Hindustan
motors and lowest mean score held by Sundaram clayton which is -5.35 so on the basis of that we
can say that Hindustan motors company’s average performance is good and Sundaram clayton
company’s average performance is bad compare to other companies. Further comparison on the
basis of standard deviation, maximum value is of Sundaram clayton with 1st rank position and
minimum value is of Mahindra & Mahindra with the last rank position.

5.2.1(H) CASH GENERATING POWER RATIO

Premier company is performing well as it stands at 1st rank for cash generating power ratio. It
shows that premier is generating good cash during the year. Majestic auto and Hindustan motors
stood at 2nd and 3rd position respectively with good performance during the research period. Maruti
Suzuki and hero MotoCorp are at 4th and 5th rank but in some years it shows high negative values
which shows their average performance in those particular years. For further three positions eicher
motors, kinetic Eng. and ashok Leyland are there with their average performance during the
research period. VSTillers, Mahindra & Mahindra, scooters India, Bajaj auto and SML are
performing below average as they are positioned at 11th to 15th rank and shows fluctuating trend
during the research period. Escort and Maharashtra scooters are positioned at last two ranks which
are 19th and 20th with poor performance during the research period. If we compare these companies
in mean rank aspect, then majestic auto is at highest point with 618 and premier is at lowest value
with -734 mean.

5.2.1(I) EXTERNAL FINANCING RATIO

Average value maintained by the industry is -0.89 of the total values. Maharashtra scooters and
majestic auto are ranked 1 st and 2nd with their excellent performance still they both have some
negative values during the research period. 3rd and 4th positions are secured by premier and
scooters India with above average performance but they also have weak mean score as they both
perform with negative values in most of the years. SML, force motors and TATA motors are stood
at 9th, 10th and 11th position with their average performance and they all are performing with

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negative values in almost all the years of research period. Maruti Suzuki, Mahindra & Mahindra
and eicher motors are positioned at last three ranks as they are performing with negative values in
all the years of research period. If we talk about mean score than premier has maximum mean
score of 1.84 and Maharashtra scooters has least mean score of -11.

5.2.1(J) PRICE TO CASH FLOW RATIO

Average value maintained by the industry is 1.03 of the total values. Maximum cash size was 6.76
in the year 2014-15 and the least cash size was -4.09 in the year 2017-18. Escort is performing
great with highest values during the research period and stood at 1st rank with highest standard
deviation and highest mean score. Scooters India is ranked 2nd but it also shows highest negative
values during the research period. Sundaram clayton, Hindustan motors and premier are stood at
next three positions which are 3rd, 4th and 5th position and for which they analyzed as good
performance companies in the industry. Eicher motors, SML and VSTillers are showing average
performance as they ranked 9th, 10th and 11th position. Bajaj auto, Maruti Suzuki and hero
MotoCorp are at last three positions which is 18th, 19th and 20th which shows poor performance of
them during the research period. If companies are compared by mean score which indicated
average overall performance of the companies than the highest mean is 19.80 which is of escort
and lowest mean score held by scooters India which is -13.83 so on the basis of that we can say
that escort company’s average performance is good and scooters India company’s average
performance is bad compare to other companies.

5.2.1(K) CASH FLOW INTEREST COVERAGE RATIO

Maharashtra scooters stands at 1st rank with highest standard deviation. Overall performance of all
the companies are good compares to other ratios as most of the companies are performing with the
positive values during the research period. Ashok Leyland, escort, force motors, premier, SML,
Sundaram clayton and VSTillers are average performer as they all have at least one year of
negative value during research period. Further Hindustan motors, Maharashtra scooters, kinetic
Eng., majestic auto, scooters India and TATA motors are performing below average as they all are
performing with negative values in most of the years during the research period. Further remaining

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all the companies are performing very well compare to other companies as they performing
positively during the research period. If companies are compared by mean score which indicated
average overall performance of the companies than the highest mean is 3669.7 which is of Bajaj
auto and lowest mean score held by Maharashtra scooters which is -19596 so on the basis of that
we can say that Bajaj auto company’s average performance is good and Maharashtra scooters
company’s average performance is bad compare to other companies.

5.2.1(L) CASH FLOW FROM OPERATING ACTIVITY TO FIXED ASSETS

For above ratio all the company’s performance varies from year to year. Scooters India,
Maharashtra scooters and Hindustan motors are performing well compare to other companies as
they positioned at 1st, 2nd and 3rd rank but they all have negative values in some years during the
research period. Further majestic auto, hero MotoCorp and Eicher motors are ranked for next three
positions so we can say that those companies are also performing well. VSTillers, ashok Leyland
and Atul auto are performing average compare to other companies during the research period and
least performing companies are escort, Mahindra & Mahindra and kinetic Eng. as they ranked at
last three positions. If we compare the companies on the mean score base, then Bajaj auto will be
at 1st rank as it scores 1.57 and Maharashtra scooters will be ranked last as it’s mean score is -1.59.

So we can say that the average performance of Bajaj auto is good and Maharashtra scooters is
performing poor compare to other companies during the research period.

5.2.1(M) CASH FLOW FROM OPEARTING ACTIVITY TO TOTAL REVENUE

Atul auto, Bajaj auto, Eicher motors, hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki and
TVS are excellent performer for this ratio as they all are showing positive values throughout the
years of research period. Compare to these companies Ashok Leyland, escort, force motors,
Hindustan motors, majestic auto, premier, SML, Sundaram clayton, TATA motors and VSTillers
are average performer as they all showing at least one negative result of this ratio during research
period. Other than these companies all other companies are performing below average as they all
are performing with negative values in most of the years of research period. If companies are

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compared by mean score which indicated average overall performance of the companies than the
highest mean is 0.37 which is of Hindustan motors and lowest mean score held by Maharashtra
scooters which is -0.22 so on the basis of that we can say that Hindustan motors company’s average
performance is good and Maharashtra scooters company’s average performance is poor compare
to other companies. Further comparison on the basis of standard deviation, maximum value is of
Hindustan motors with 1st rank position and minimum value is of Mahindra & Mahindra with the
last rank position.

5.2.1(N) CASH FLOW FROM OPERATING ACTIVITY TO NET INCOME

TATA motors, is perfectly going on its way towards a better future. Cash is about everything one
needs to have with and companies showing a better cash generating capacity can’t be stopped by
anyone except the market trend and scenario. For this ratio average performer companies are atul
auto, Bajaj auto, eicher motors, Mahindra & Mahindra, Maruti Suzuki, scooters India, SML,
Sundaram clayton, TVS and VSTillers. Other than these companies all other companies are
performing below average as they are performing with negative values for more than one year
during research period. If companies are compared by mean score which indicated average overall
performance of the companies than the highest mean is 13.54 which is of TATA motors and lowest
mean score held by scooters India which is -1.56 so on the basis of that we can say that TATA
motors company’s average performance is good and scooters India company’s average
performance is bad compare to other companies. Further comparison on the basis of standard
deviation, maximum value is of TATA motors with 1st rank position and minimum value is of
escort with the last rank position.

5.2.1(O) RETURN ON EQUITY

Return on equity is a performance driver to check profitability of any company by which one can
check profit making capacity of a company. For this ratio almost every company is showing seesaw
trend during the research period. By analyzing the table, we can say that all most all the companies
are performing with positive values throughout the research time period except Hindustan motors,
kinetic Eng., premier, scooters India and TATA motors because these companies are performing

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with some negative values during research duration which shows weak condition of the companies.
Still premier and kinetic Eng. companies are stood at 1st and 2nd rank respectively as their standard
deviation values are high compare to other companies. Mahindra & Mahindra is showing average
performance as it ranked at the position in research period. Least two positioned companies are
TVS and VSTillers which is 19th and 20th position respectively. If companies are compared by
mean score which indicated average overall performance of the companies than the highest mean
is 2.18 which is of escort and lowest mean score held by scooters India which is -0.35 so on the
basis of that we can say that escort company’s average performance is good and scooters India
company’s average performance is bad compare to other companies.

5.2.1(P) RETURN ON ASSETS

Return on asset is also a performance driver to check profitability of any company by which one
can check profit making capacity of a company. For this ratio almost every company is showing
seesaw trend during the research period. By analyzing the table, we can say that all most all the
companies are performing with positive values throughout the research time period except
Hindustan motors, kinetic Eng., premier, scooters India and TATA motors because these
companies are performing with some negative values during research duration which shows weak
condition of the companies. Still Hindustan motors and scooters India companies are stood at 1 st
and 2nd rank respectively as their standard deviation values are high compare to other companies.
Mahindra & Mahindra is showing average performance as it ranked at the position in research
period. Least two positioned companies are SML and TVS which is 19th and 20th position
respectively. If companies are compared by mean score which indicated average overall
performance of the companies than the highest mean is 1.19 which is of escort and lowest mean
score held by scooters India which is -0.21 so on the basis of that we can say that escort company’s
average performance is good and scooters India company’s average performance is bad compare
to other companies.

5.2.1(Q) P/E RATIO

The ratio is used for valuing companies and to find out whether they are overvalued or
undervalued. Average P/E ratio maintained by the industry is 13.26 of the total values. Maximum

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P/E ratio was 40.55 in the year 2013-14 and the least P/E ratio was -81.27 in the year 2015-16.
TATA motors, is perfectly going on its way towards a better future. Cash is about everything one
needs to have with and companies showing a better cash generating capacity can’t be stopped by
anyone except the market trend and scenario. For this ratio average performer companies are atul
auto, Bajaj auto, eicher motors, Mahindra & Mahindra, Maruti Suzuki, scooters India, SML,
Sundaram clayton, TVS and VSTillers. Other than these companies all other companies are
performing below average as they are performing with negative values for more than one year
during research period. If companies are compared by mean score which indicated average overall
performance of the companies than the highest mean is 47.80 which is of Sundaram clayton and
lowest mean score held by TATA motors which is -131.69 so on the basis of that we can say that
Sundaram clayton company’s average performance is good and TATA motors company’s average
performance is bad compare to other companies.

5.2.1(R) P/CF RATIO

It is a stock valuation indicator or multiple that measures the value of stock’s price relative to its
operating cash flow per share. Sundaram clayton stands at 1st rank with highest standard deviation.
Overall performance of all the companies are good compares to other ratios as most of the
companies are performing with the positive values during the research period. Ashok Leyland,
escort, force motors, premier, SML, Sundaram clayton and VSTillers are average performer as
they all have at least one year of negative value during research period. Further Hindustan motors,
Maharashtra scooters, kinetic Eng., majestic auto, scooters India and TATA motors are performing
below average as they all are performing with negative values in most of the years during the
research period. Further remaining all the companies are performing very well compare to other
companies as they performing positively during the research period. If companies are compared
by mean score which indicated average overall performance of the companies than the highest
mean is 108.98 which is of eicher motors and lowest mean score held by Sundaram clayton which
is -349.34 so on the basis of that we can say that eicher motors company’s average performance is
good and Sundaram clayton company’s average performance is poor compare to other companies.
Further comparison on the basis of standard deviation, maximum value is of Sundaram clayton
with 1st rank position and minimum value is of ashok Leyland with the last rank position.

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5.2.1(S) P B RATIO
This ratio measures the market’s valuation of a company relative to its book value. Average P/B
ratio maintained by the industry is 43.62 of the total values. Sundaram clayton stands at 1st rank
with highest standard deviation. Overall performance of all the companies are good compares to
other ratios as most of the companies are performing with the positive values during the research
period. Ashok Leyland, escort, force motors, premier, SML, Sundaram clayton and VSTillers are
average performer as they all have at least one year of negative value during research period.
Further Hindustan motors, Maharashtra scooters, kinetic Eng., majestic auto, scooters India and
TATA motors are performing below average as they all are performing with negative values in
most of the years during the research period. Further remaining all the companies are performing
very well compare to other companies as they performing positively during the research period. If
companies are compared by mean score which indicated average overall performance of the
companies than the highest mean is 608.41 which is of Sundaram clayton and lowest mean score
held by Hindustan motors which is -1.03 so on the basis of that we can say that Sundaram clayton
company’s average performance is good and Hindustan motors company’s average performance
is poor compare to other companies. Further comparison on the basis of standard deviation,
maximum value is of Sundaram clayton with 1st rank position and minimum value is of majestic
auto with the last rank position.

5.2.1(T) FINANCIAL LEVERAGE RATIO

Financial leverage ratio is a performance driver to check solvency of any company. A figure of
0.5 or less is ideal for the company of financial leverage ratio. Average financial leverage ratio
maintained by the industry is 0.26 of the total values. Premier company is performing well as it
stands at 1st rank for cash generating power ratio. It shows that premier is generating good cash
during the year. Kinetic Eng. and Hindustan motors stood at 2nd and 3rd position respectively with
good performance during the research period. Scooters India and majestic auto are at 4th and 5th
rank but in some years it shows high negative values which shows their average performance in
those particular years. For further three positions eicher motors, kinetic Eng. and ashok Leyland
are there with their average performance during the research period. Atul auto, SML, Bajaj auto,
Mahindra & Mahindra and escort are performing below average as they are positioned at 11 th to

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15th rank and shows fluctuating trend during the research period. Hero MotoCorp and Maharashtra
scooters are positioned at last two ranks which are 19th and 20th with poor performance during the
research period. If we compare these companies in mean rank aspect, then Sundaram clayton is at
highest point with 0.97 and premier is at lowest value with -1.34 mean.

5.2.1(U) ASSET TURNOVER RATIO

Asset turnover ratio is a performance driver to check efficiency of any company. A high ratio
indicates that the company is using its assets efficiency to increase sales, while low ratio
indicates the opposite. For this ratio all the companies are performing very well as they all are
performing with positive values throughout the research period. Hindustan motors, is perfectly
going on its way towards a better future. For this ratio average performer companies are atul auto,
Bajaj auto, eicher motors, Mahindra & Mahindra, Maruti Suzuki, scooters India, SML, Sundaram
clayton, TVS and VSTillers. Other than these companies all other companies are performing below
average as they are performing with negative values for more than one year during research period.
If companies are compared by mean score which indicated average overall performance of the
companies than the highest mean is 2.18 which is of TVS and lowest mean score held by
maharshtra scooters which is 0.02 so on the basis of that we can say that TVS company’s average
performance is good and maharshtra scooters company’s average performance is bad compare to
other companies. Further comparison on the basis of standard deviation, maximum value is of
Hindustan motors with 1st rank position and minimum value is of Maharashtra scooters with the
last rank position.

5.2.1(V) CURRENT RATIO

This ratio is liquidity ratio which measures whether a firm has enough resources to meet its short
term obligations. Average asset turnover ratio maintained by the industry is 1.19 of the total
values. Premier company is performing well as it stands at 1st rank for cash generating power ratio.
It shows that premier is generating good cash during the year. Kinetic Eng. and Hindustan motors
stood at 2nd and 3rd position respectively with good performance during the research period.
Scooters India and majestic auto are at 4th and 5th rank but in some years it shows high negative

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values which shows their average performance in those particular years. For further three positions
eicher motors, kinetic Eng. and ashok Leyland are there with their average performance during the
research period. Atul auto, SML, Bajaj auto, Mahindra & Mahindra and escort are performing
below average as they are positioned at 11th to 15th rank and shows fluctuating trend during the
research period. Hero MotoCorp and Maharashtra scooters are positioned at last two ranks which
are 19th and 20th with poor performance during the research period. If we compare these companies
in mean rank aspect, then kinetic Eng. is at highest point with 1.10 and premier is at lowest value
with -1.34 mean.

5.2.2 FINDINGS OF NORMALITY TEST

Normality tests are used to determine if a data set is well modeled by a normal distribution
and to compute how likely it is for a random variable underlying the data set to be normally
distributed. This study has selected 14 cash flow ratio from 20 companies comparing of two
wheers, three wheelers and four whhelers companies of indian automobile industry. Normality of
data is essential to performed the peramateric test. Kolmogorov-Smirnov and Shapiro-Wilk was
used to check the normality.

Test of normality table indicate that P value for all the 14 cash flow ratios is less than 0.05
so it can be said that all the ratios are statistically signficant at 5 percent level of signficance. Hence
null hypothesis of the normality test rejected and concludeed that data are not normaly distributed.

5.2.3 FINDINGS OF MANN-WHITENY U TEST

This test is used to compare difference between two independent groups when the
dependent variable is either ordinal or continuous, but not normally ditributed. Mann whiteny u
test uses z-test to test the null hypothesis.

COMPANY TYPE WISE COMPARISION OF CASH FLOW RATIOS:

Mann- Whitney U test table shows that p value for cash flow margin ratio, free cash flow
to operating cash flow ratio, price to cash flow ratio, cash flow from operating activity to total
revenue and cash flow from operating activity to net income is less than 0.05. These ratios are

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statistically significant at 5 percent level of significance and conclude that mean score of these
ratios are different for four wheeler companies and two/thee wheeler companies. Other ratios have
p value higher than 0.05 hence they did not record the statistically difference in the means score
for four wheeler companies and two/thee wheeler companies.

HYPOTHESIS TEST SUMMARY

MANN WHITENT U TEST
NULL HYPOTHESIS SIGNIFICANCE DECISION
The distribution of current liability coverage ratio is 0.422 Accept the null
the same across categories of industry type hypothesis
The distribution of total liability coverage ratio is the 0.196 Accept the null
same across categories of industry type hypothesis
The distribution of cash flow margin ratio is the 0.014 reject the null
same across categories of industry type hypothesis
The distribution of asset efficient ratio is the same 0.523 Accept the null
across categories of industry type hypothesis
The distribution of cash return on invested capital is 0.322 Accept the null
the same across categories of industry type hypothesis
The distribution of free cash flow to operating cash 0.023 reject the null
flow is the same across categories of industry type hypothesis
The distribution of operating index is the same 0.074 Accept the null
across categories of industry type hypothesis
The distribution of cash generating power ratio is the 0.753 Accept the null
same across categories of industry type hypothesis
The distribution of external financing index ratio is 0.114 Accept the null
the same across categories of industry type hypothesis
The distribution of price to cash flow ratio is the 0.024 reject the null
same across categories of industry type hypothesis
The distribution cash flow interest coverage ratio is 0.463 Accept the null
the same across categories of industry type hypothesis
The distribution of cash flow from operating activity 0.655 Accept the null
to fixed assets is the same across categories of hypothesis
industry type
The distribution of cash flow from operating activity 0.025 reject the null
to total revenue is the same across categories of hypothesis
industry type
The distribution of cash flow from operating activity 0.014 reject the null
to net income is the same across categories of hypothesis
industry type

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 By comparing mean rank score of each and every ratio the study concludes that mean rank
score for every ratio is higher at four wheeler companies compare to two/three wheeler companies
except cash return on invested capital and free cash flow to operating cash flow as these two ratios
works at higher mean rank score at two/three wheeler companies that is opposite to other ratios.

5.2.4 FINDINGS OF KRUSKAL WALLIS TEST

The normality assumptions may not hold true when we are dealing with ordinal data or
when the size of the sample is very small. The kruskal wallis test comes to our rescue during such
situation. This is, in fact, a non-paramrtric counterpart to the one-way ANOVA.

Kruskal Wallis test table shows that p value for all the cash flow ratio except free cash flow
to operating cash flow, cash generating power ratio and external financing index ratio is less than
0.05. These ratios are statistically significant at 5 percent level of significance and conclude that
mean score of these ratios are different for two/three wheeler companies. Where p value of free
cash flow to operating cash flow, cash generating power ratio and external financing index ratio is
not less than 0.05 so it is not statistically significant hence it can be said that mean rank for these
cash flow ratio are not significantly different for two/three wheeler companies.

5.2.4(A) Two/three Wheeler Company wise comparission of cash flow ratios:

Following table, the individual comparison of each cash flow ratio of all the 9 two/three wheeler
companies.

HYPOTHESIS TEST SUMMARY

industry type = Two/ Three Wheeler Company

KRUSKAL WALLIS TEST
NULL HYPOTHESIS SIGNIFICANCE DECISION
The distribution of current liability coverage ratio is 0.000 Reject the null
the same across categories of company hypothesis
The distribution of total liability coverage ratio is the 0.000 Reject the null
same across categories of company hypothesis
The distribution of cash flow margin ratio is the 0.000 Reject the null
same across categories of company hypothesis

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 The distribution of asset efficient ratio is the same 0.000 Reject the null
across categories of company hypothesis
The distribution of cash return on invested capital is 0.000 Reject the null
the same across categories of company hypothesis
The distribution of free cash flow to operating cash 0.149 accept the null
flow is the same across categories of company hypothesis
The distribution of operating index is the same 0.004 Reject the null
across categories of company hypothesis
The distribution of cash generating power ratio is the 0.860 Accept the null
same across categories of company hypothesis
The distribution of external financing index ratio is 0.137 Accept the null
the same across categories of company hypothesis
The distribution of price to cash flow ratio is the 0.000 Reject the null
same across categories of company hypothesis
The distribution cash flow interest coverage ratio is 0.000 Reject the null
the same across categories of company hypothesis
The distribution of cash flow from operating activity 0.000 Reject the null
to fixed assets is the same across categories of hypothesis
company
The distribution of cash flow from operating activity 0.000 Reject the null
to total revenue is the same across categories of hypothesis
company
The distribution of cash flow from operating activity 0.000 Reject the null
to net income is the same across categories of hypothesis
company

Mean Rank across of two/three wheeler company for all the cash flow ratio shows that
there is significant difference in mean rank. Baja Auto and Hero MotoCorp has the comparative
higher mean rank in all the cash flow ratios where Maharashtra Sco. has the lower mean rank
compare to other two/three wheeler companies?

In such test total 11 ratios are compared out of 14 ratios according to their significance
results. According to figures and graphs Black line indicates that there is no significant difference
in the mean rank of connecting Out of those 11 ratios, 7 ratios has more deviated mean rank as
their figures shows more than 4 golden lines and remaining 4 ratios has 4 or less than 4 golden
lines in their figures.

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5.2.4(B) Four Wheeler Company wise comparission of cash flow ratios

Following table, the individual comparison of each cash flow ratio of all the 9 two/three wheeler
companies.

HYPOTHESIS TEST SUMMARY

industry type = four Wheeler Company
KRUSKAL WALLIS TEST
NULL HYPOTHESIS SIGNIFICANCE DECISION
The distribution of current liability coverage ratio is 0.000 Reject the null
the same across categories of company hypothesis
The distribution of total liability coverage ratio is the 0.000 Reject the null
same across categories of company hypothesis
The distribution of cash flow margin ratio is the 0.000 Reject the null
same across categories of company hypothesis
The distribution of asset efficient ratio is the same 0.000 Reject the null
across categories of company hypothesis
The distribution of cash return on invested capital is 0.402 accept the null
the same across categories of company hypothesis
The distribution of free cash flow to operating cash 0.273 accept the null
flow is the same across categories of company hypothesis
The distribution of operating index is the same 0.272 accept the null
across categories of company hypothesis
The distribution of cash generating power ratio is the 0.739 Accept the null
same across categories of company hypothesis
The distribution of external financing index ratio is 0.280 Accept the null
the same across categories of company hypothesis
The distribution of price to cash flow ratio is the 0.000 Reject the null
same across categories of company hypothesis
The distribution cash flow interest coverage ratio is 0.000 Reject the null
the same across categories of company hypothesis
The distribution of cash flow from operating activity 0.000 Reject the null
to fixed assets is the same across categories of hypothesis
company
The distribution of cash flow from operating activity 0.001 Reject the null
to total revenue is the same across categories of hypothesis
company
The distribution of cash flow from operating activity 0.004 Reject the null
to net income is the same across categories of hypothesis
company

226
 For all the cash flow ratio, the mean rank across four Wheeler Companies indicates that
the mean rank varies significantly. In all cash flow ratios, where Hindustan Motors and Premier
have the lower mean rank compared to other four wheeler firms, Eicher Motor and Maruti Suzuki
have the comparatively higher mean rank.

In such test total 9 ratios are compared out of 14 ratios according to their significance
results. According to figures and graphs Black line indicates that there is no significant difference
in the mean rank of connecting black line companies where Golden line indicate that there is
significant difference in the mean rank of connecting Golden line companies. Out of those 9 ratios,
6 ratios has more deviated mean rank as their figures shows more than 4 golden lines and remaining
3 ratios has 4 or less than 4 golden lines in their figures.

5.2.5 FINDINGS OF REGRESSION ANALYSIS

5.2.5 Impact of the cash flow ratio on profitability ratio

Model 1 displays only one ratio is statistically significant with positive impact which is cash flow
from operating activity to total revenue so it can be concluded as when operating cash flow to total
revenue increases return on equity also increases.

Model 2 shows cash flow from operating activity to total revenue and cash flow margin ratio has
the negative impact on the return on assets with the standardized beta weight of -0.307 and -0.170
respectively so it can be concluded that when values of operating cash flow increases value of
return on assets decreases. On the other hand, price to cash flow ratio and cash return on invested
capital has the positive impact with the beta weight of 0.300 and 0.133 respectively which shows
increase in one variable also tends to increase in other variable.

Model 3 expresses external financing index ratio, free cash flow to operating cash flow, cash return
on invested capital, asset efficient ratio and current liability Coverage Ratio has negative impact
on the EPS with the coefficient weight of -1.083, -1.063, -.202, -.300 and -.441 respectively which
concludes increase in independent variable leads to decrease in dependent variable. coefficient
beta for the model indicate that total liability coverage ratio has positive impact on EPS with the

227
standardized beta weight of 1.156 which results increase in independent variable inclines to also
increase in dependent variable.

5.2.6 Impact of the cash flow ratio on Valuation ratio

Model 1 expresses Cash flow from operating activity to net income has the negative impact on the
PE ratio with the standardized beta weight of -0.844 which indicates increase in independent
variable leads to decrease in dependent variables which is PE ratio. where operating index has the
positive impact with the beta weight of 0.097 which results as increase in independent variable
also shows increase in dependent variable.

Model 2 shows none of the ratio has the statistically significant impact on P/CF ratio.

Model 3 cash flow from operating activity to net income and operating index has negative impact
on PB ratio with the coefficient weight of -.174 and -.479 respectively which effects increase in
independent variables tends to decrease in dependent variable. none of the ratio has negative
impact on PB ratio.

228
5.3 SUGGESTION

 The cost of foreign financing is unsustainable in some car firms and those firms can be
compensated by raising the equity fund from employee stock options.
 In a cash-based business model, business may also think about further diversifying its
company. In order to cope with the detrimental impact of trade receivables, this will
provide the business with long-term stability.
 Industry companies that are not part of the study are advised to follow the trends set up by
the top performing businesses of the industry in their cash management.
 Companies producing low cash from their operational activities are recommended to keep
a check on their operating expenses and increase their operating cash inflow.
 In order not to ignore the opportunity to generate additional inflows by investing the
surplus cash, it is suggested that the industry units maintain the optimum cash balance
level. Units should also take care at a certain stage not to lose cash.
 In order to maximize their cash inflow, company management must ensure that they have
a service or product that meets the needs of their customers. This could only be achievable
by continually improving the value of their goods or services.
 Business management should avoid the use of high interest loans and search for cheaper
sources of funds, such as the use of retained earnings and the incorporation of more
personal capital into the company.
 The external borrowing burden is unreasonable and by increasing the equity fund from
employee stock options, the company can get it repaid.

Overall, companies that have strong control over their cash flows have been shown to do better
than those that do not. Therefore, it is advisable for all companies to focus more efficiently on
managing their cash flow to secure a good position in the industry.

229
5.4 CONCLUSION

Cash flow analysis is essential to identify flaws in business processes that can contribute to the
liquidity crunch for the organization. Through cash flow analysis, businesses can evaluate the
unproductive use of funds, as well as identify and prepare potential cash flow.

The research goal that was identified in the earlier chapter was successfully achieved by the
current review. The main objective of this research is to evaluate cash management through cash
flow statement. The current research aims to determine whether the goal was evaluated using the
ranking, mann-whiteny u test, Kruskal Wallis test and multiple regression analysis to assess
whether there is a relevant association between cash flow ratios and financial distress. To evaluate
the cash management techniques of these companies here the researcher compares all the
companies on the basis of different cash flow ratios and gave ranks on the basis of their
performances, by studying those ratios we can conclude that all the companies are performing
differently in each ratio and to evaluate these companies more clearly we gave rank them on the
basis of average or overall ranking so on the basis of overall ranking we found that Hindustan
motors is leading company on overall performance basis, whereas scooters India is standing
second and majestic auto is standing third position whereas Mahindra & Mahindra is found to be
the poor performer amongst the industry samples during the research period because it positions
at last rank, which shows a lack of proper management or poor performance in terms of
management and business.

According to the objective of the report, the Indian two/three wheeler automobile industry and
four wheeler automobile industry companies would find a difference in cash management
techniques. to evaluate that firstly we test the data under normality test to find out the nature of
data and according to that test normality table indicate that P value for all the 14 cash flow ratios
is less than 0.05 so it can be said that all the ratios are statistically signficant at 5 percent level of
signficance. Hence null hypothesis of the normality test rejected and concludeed that data are not
normaly distributed. Hence we use non-paramertric test that is Mann Whiteny U test to check the
sigmificance difference in the mean score of two/three wheeler and four wheeler companies.
Mann- Whitney U test table shows that p value for cash flow margin ratio, free cash flow to
operating cash flow ratio, price to cash flow ratio, cash flow from operating activity to total revenue
and cash flow from operating activity to net income is less than 0.05. These ratios are statistically

230
significant at 5 percent level of significance and conclude that mean score of these ratios are
different for four wheeler companies and two/thee wheeler companies. Other ratios have p value
higher than 0.05 hence they did not record the statistically difference in the means score for four
wheeler companies and two/thee wheeler companies.

Result of the Mann Whitney u test is stated as out of 14 ratios null hypothesis for some ratios
viz. cash flow margin ratio, free cash flow to operating cash flow, price to cash flow ratio, cash
flow from operating activity to total revenue, cash flow from operating activity to net income has
been rejected as their significant value is less than 0.05 and null hypothesis other than these ratios
has been accepted as their p value is more than 5% so we can conclude than null hypothesis for
more than 50% ratios has been accepted.

For more clarity second test is used i.e. kruskal wallis test. This test is an extension of the
Mann-whiteny U test. Both methods require that the scale of the measurement of a sample value
should be at least ordinal. To test the companies according to their type that is two/three wheeler
or four wheelers the researcher use Kruskal Wallis test for more clarity to conclude the data. For
that we bifurcate the all 20 companies of Indian automobile industry into two groups which is
two/three wheeler companies and four wheeler companies.

Further by comparing 9 two/three wheeler companies through Kruskal Wallis test it can be
concluded that there is significant deviation in the almost all the cash flow ratios across various
two/three wheeler companies. Cash flow ratios of the 9 companies are compared through Kruskal
Wallis Test and also one to one comparision between companies also carried out to find out the
diffrencees. Kruskal Wallis test table shows that p value for all the cash flow ratio except free cash
flow to operating cash flow, cash generating power ratio and external financing index ratio is less
than 0.05. These ratios are statistically significant at 5 percent level of significance and conclude
that mean score of these ratios are different for two/three wheeler companies. Where p value of
free cash flow to operating cash flow, cash generating power ratio and external financing index
ratio is not less than 0.05 so it is not statistically significant hence it can be said that mean rank for
these cash flow ratio are not significantly different for two/three wheeler companies.

Therefore result for Kruskal Wallis test for two/three wheeler companies is concluded as null
hypothesis for current liability coverage ratio, total liability coverage ratio, cash flow margin ratio,
asset efficient ratio, cash return on invested capital, operating index ratio, price to cash flow ratio,

231
cash flow interest coverage ratio, cash flow from operating activity to total revenue, cash flow
from operating activity to fixed assets and cash flow from operating activity to net income has
been rejected as p value for these ratios are less than 0.05 and other than that ratios has been
accepted as their p value is more than 0.05.

And remaining 11 four wheeler companies are compared through Kruskal Wallis test and also
one to one comparison between companies also carried out to find out the differences. Overall it
can be concluded that majority of the cash flow ratio are different within four wheeler automobile
industry. Result for Kruskal Wallis test for four wheeler companies is concluded as null hypothesis
for current liability coverage ratio, total liability coverage ratio, cash flow margin ratio, asset
efficient ratio, price to cash flow ratio, cash flow interest coverage ratio, cash flow from operating
activity to total revenue, cash flow from operating activity to fixed assets and cash flow from
operating activity to net income has been rejected as p value for these ratios are less than 0.05 and
other than that ratios has been accepted as their p value is more than 0.05.

To find out significance difference between cash flow ratios and profitability ratios multiple
Regression analysis was performed to find out the impact of the cash flow ratio on the profitability
ratio. Profitability ratio namely return on equity, return on asset and EPS taken as the dependent
variable and all the 14 cash flow ratio was inserted as the independent variables. From analysis
table we can conclude that ROE is statistically significant as the significance value is greater than
5% level of significance and on other hand ROA and EPS are not statistically significant as their
values are less than 5% level of significance. Further to find out significance difference between
cash flow ratios and valuation ratios multiple Regression analysis was performed to find out the
impact of the cash flow ratio on the valuation ratio. Valuation ratio namely PE ratio, P/CF ratio
and PB ratio taken as the dependent variable and all the 14 cash flow ratio was inserted as the
independent variables. From analysis table we can conclude that P/CF ratio is statistically
significant as the significance value is greater than 5% level of significance and on other hand PE
ratio and PB ratio are not statistically significant as their values are less than 5% level of
significance. Overall multiple regression analysis concludes that cash flow ratio has the moderate
to low impact on the profitability ratio in Indian automobile industry. Overall multiple regression
analysis concludes that cash flow ratio has the moderate to low impact on the profitability
parameters as well as on the valuation parameters in Indian automobile industry.

232
5.5 FUTURE SCOPE OF THE STUDY

The future scope of the study will be wide in this area of study.

This research favors a few of the study's companies; however, other units may be considered when
evaluating the industry's results. The corporations' cash management efficiency has been examined
from a number of perspectives, but other facets of these groups, such as social responsibility,
human resource management, costing strategies, market practices, dividend policies, and leverage,
can be explored in the future.

This study is only for a ten-year duration, from 2009-10 to 2018-19, but it could be extended for
another ten years. While this analysis is based on secondary data, the same aspect could be
explored using primary data.

In this research, a comparative review was carried out using specific methods and hypotheses.
Other methods and strategies may be used to evaluate the data and come up with more concrete
conclusions. As a result, there is a lot of room for growth in a variety of areas with a variety of
data types. As an objective literature review, the analysis will be useful in future studies.

233
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26. www.escortsgroups.com
27. www.forcemotors.com
28. m.heromotocorp.com
29. www.hindmotor.com
30. www.mahascooters.com
31. www.kineticindia.com
32. www.mahindrafinance.com
33. www.majesticauto.in
34. www.marutisuzuki.com
35. Premier.co.in
36. www.scootersindia.com
37. www.smlisuzu.com
38. www.sundaram-clyton.com
39. www.tatamotors.com
40. www.tvsmotor.com
41. www.vstractors.com

242
 CASH FLOW RATIO

CURRENT LIABILITY COVERAGE RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm C.L. ratio csh frm C.L. ratio
oper. oper.
109016.82 259206.57 0.42 958.02 1236.15 0.78 27371.10 20262.50 1.35 437.50 1174.50 0.37
59138.27 303794.77 0.19 1672.56 1830.36 0.91 20372.20 24266.50 0.84 843.40 1647.90 0.51
111706.37 484370.23 0.23 1879.37 3322.60 0.57 29599.10 46251.60 0.64 1902.40 3764.40 0.51
72829.96 529609.77 0.14 4066.00 4138.78 0.98 21343.70 41336.30 0.52 3688.10 6349.50 0.58
55643.01 458660.20 0.12 3070.86 4375.19 0.70 35457.10 47302.40 0.75 6859.60 9568.20 0.72
176655.19 503551.94 0.35 3578.90 5065.50 0.71 21473.20 44767.90 0.48 19833.60 11963.70 1.66
167561.23 520986.36 0.32 1086.48 6142.32 0.18 36454.10 29530.20 1.23 14743.30 12015.90 1.23
215477.12 618108.03 0.35 7229.82 5822.79 1.24 33392.00 32125.80 1.04 17618.60 14536.60 1.21
541835.18 824698.21 0.66 2610.73 7108.85 0.37 42607.90 41112.90 1.04 25153.90 21946.30 1.15
-36265.00 878896.00 -0.04 3454.76 8948.82 0.39 24895.30 48736.80 0.51 16107.20 19783.80 0.81

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

csh frm oper. C.L. Ratio csh frm oper. C.L. ratio csh frm C.L. ratio csh frm C.L. ratio
oper. oper.
852.20 7310.30 0.12 5,867.24 30,379.11 0.19 26866.40 38050.60 0.71 1068.39 21762.06 0.05
1871.40 8819.00 0.21 7286.98 39556.34 0.18 22881.10 50636.80 0.45 -8822.59 22228.56 -0.40
553.90 14899.60 0.04 -13921.61 40471.75 - 23597.80 20482.70 1.15 -10003.21 27550.94 -0.36
0.34
553.90 14899.60 0.04 8325.65 45937.61 0.18 18904.30 41706.80 0.45 -10906.14 27712.25 -0.39
3283.00 13691.90 0.24 12066.77 49423.33 0.24 29634.10 44230.00 0.67 -2406.25 21070.46 -0.11
98.00 13369.00 0.01 22596.98 59428.29 0.38 22500.00 38834.20 0.58 3315.41 10922.84 0.30
2291.40 13130.80 0.17 26324.99 71668.60 0.37 39137.90 40488.20 0.97 852.40 13505.78 0.06
3007.90 14165.50 0.21 6038.00 90133.00 0.07 40280.20 40933.30 0.98 655.10 14522.74 0.05
4722.00 16491.80 0.29 25648.00 68298.00 0.38 39808.60 43433.20 0.92 -3345.95 10407.37 -0.32
-2406.80 18684.80 -0.13 31203.00 65311.00 0.48 9790.50 41303.60 0.24 -1397.41 5790.56 -0.24

243
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm oper. C.L. ratio
-1139.92 1525.22 -0.75 -2018.44 4722.92 -0.43 2336.49 3400.00 0.69 -343.01 2185.50 -0.16
-1224.34 1592.53 -0.77 -1322.28 4526.74 -0.29 2,979.75 4,761.68 0.63 1747.47 2467.14 0.71
-4534.95 834.34 -5.44 -1502.02 6063.05 -0.25 2,734.95 7,326.05 0.37 1603.38 4632.45 0.35
-754.66 3335.54 -0.23 -790.93 20054.12 -0.04 4,145.71 8,150.39 0.51 1594.90 5937.63 0.27
-569.24 4092.76 -0.14 1314.20 22141.57 0.06 3,727.64 8,766.79 0.43 -2672.68 3303.46 -0.81
-1011.13 4936.67 -0.20 -1214.54 14170.18 -0.09 3,219.49 8,974.27 0.36 -1550.79 2042.86 -0.76
-796.81 1142.82 -0.70 -1,479.34 5,995.59 -0.25 5,470.50 9,844.32 0.56 -142.60 5400.26 -0.03
-1200.60 911.60 -1.32 310.35 6,792.83 0.05 3,971.18 9,458.95 0.42 1248.58 6024.73 0.21
67.44 1018.56 0.07 764.63 7,615.84 0.10 7,027.08 13,329.02 0.53 1,512.14 1,410.82 1.07
65.23 982.47 0.07 89.31 8,483.53 0.01 4,923.87 14,334.07 0.34 4,856.77 1,869.53 2.60

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm C.L. ratio
oper.
30318.00 29365.00 1.03 3999.58 9263.39 0.43 -2364.79 4536.54 -0.52 10,829.57 18,496.15 0.59
30503.00 35540.00 0.86 2902.83 9908.26 0.29 -2967.01 4333.31 -0.68 3,469.15 19,843.56 0.17
25,599 65,466 0.39 7984.49 32907.63 0.24 1338.28 5380.43 0.25 7,448.70 33492.76 0.22
43,842 68,280 0.64 -4816.99 24577.36 -0.20 8385.53 12395.28 0.68 -2,540.31 35106.54 -0.07
49,036 81,381 0.60 -128.16 30120.06 0.00 -509.37 4572.27 -0.11 16,193.53 37983.12 0.43
64,106 88,230 0.73 16785.64 28343.77 0.59 -1784.22 5741.52 -0.31 6,876.58 49078.24 0.14
84,845 110,392 0.77 812.91 36028.66 0.02 -1169.12 5544.97 -0.21 -1,174.93 32482.34 -0.04
102,847 132,313 0.78 -767.80 45326.13 -0.02 -612.76 5082.38 -0.12 11,800.17 27997.46 0.42
117,850 154,421 0.76 5515.62 48331.34 0.11 -98.25 2699.34 -0.04 12,062.14 28,068.59 0.43
65,932 141,503 0.47 -2764.50 60149.60 -0.05 -910.49 2431.73 -0.37 -3,278.81 40,769.69 -0.08

244
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm oper. C.L. ratio csh frm oper. C.L. ratio
10474.04 4519.73 2.32 6400.18 14609.16 0.44 338.91 667.21 0.51 1515.85 4451.36 0.34
4195.06 11796.81 0.36 1505.56 13032.53 0.12 202.40 885.19 0.23 5143.22 5989.06 0.86
33.34 494.33 0.07 3653.59 22138.17 0.17 440.85 1318.88 0.33 -955.88 9778.91 -0.10
74.73 461.37 0.16 2258.44 21104.61 0.11 418.12 1254.17 0.33 4991.10 6819.76 0.73
90.93 470.71 0.19 2463.46 18797.53 0.13 523.79 1529.16 0.34 13101.07 12497.63 1.05
85.47 457.71 0.19 -2562.67 20370.63 -0.13 84.84 2183.38 0.04 2598.06 6973.62 0.37
129.42 464.01 0.28 2702.98 18701.74 0.14 941.09 2315.88 0.41 8518.08 7006.63 1.22
167.95 485.99 0.35 1381.47 21647.80 0.06 723.93 2851.08 0.25 8950.00 8324.28 1.08
-59.50 828.74 -0.07 4133.94 24218.95 0.17 1297.32 3756.27 0.35 3336.93 14348.48 0.23
174.34 628.93 0.28 6292.63 22940.81 0.27 1097.78 4041.68 0.27 4318.19 10527.78 0.41

TOTAL LIABILITITY COVERAGE RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm oper. T.L. ratio csh frm oper. T.L. ratio csh frm T.L. ratio csh frm T.L. ratio
oper. oper.
109016.82 524459.28 0.21 958.02 4371.77 0.22 27371.10 58053.60 0.47 437.50 1782.30 0.25
59138.27 614002.61 0.10 1672.56 3429.48 0.49 20372.20 44781.30 0.45 843.40 2418.30 0.35
111706.37 770757.36 0.14 1879.37 4054.11 0.46 29599.10 50400.00 0.59 1902.40 3951.90 0.48
72829.96 864159.75 0.08 4066.00 4864.81 0.84 21343.70 45766.70 0.47 3688.10 6618.40 0.56
55643.01 836011.14 0.07 3070.86 5013.02 0.61 35457.10 51395.80 0.69 6859.60 9952.30 0.69
176655.19 819279.64 0.22 3578.90 5635.80 0.64 21473.20 48701.70 0.44 19833.60 12672.20 1.57
167561.23 787138.31 0.21 1086.48 6690.18 0.16 36454.10 33811.00 1.08 14743.30 12875.00 1.15
215477.12 767348.85 0.28 7229.82 6479.49 1.12 33392.00 37807.60 0.88 17618.60 15992.50 1.10
541835.18 942128.47 0.58 2610.73 7991.23 0.33 42607.90 47156.30 0.90 25153.90 24224.40 1.04
-36265.00 989197.00 -0.04 3454.76 9487.76 0.36 24895.30 56004.90 0.44 16107.20 23509.60 0.69

245
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
csh frm T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio
oper.
852.20 11683.10 0.07 5,867.24 50441.78 0.12 26866.40 50580.70 0.53 1068.39 30471.90 0.04
1871.40 13360.00 0.14 7286.98 71339.01 0.10 22881.10 78886.30 0.29 -8822.59 33172.94 -0.27
553.90 18019.50 0.03 -13921.61 52107.14 -0.27 23597.80 55990.90 0.42 -10003.21 32371.47 -0.31
553.90 18019.50 0.03 8325.65 55488.41 0.15 18904.30 46354.10 0.41 -10906.14 29841.81 -0.37
3283.00 16613.20 0.20 12066.77 54585.60 0.22 29634.10 44974.30 0.66 -2406.25 22392.13 -0.11
98.00 15907.90 0.01 22596.98 65480.21 0.35 22500.00 39803.70 0.57 3315.41 13186.82 0.25
2291.40 14640.40 0.16 26324.99 81341.72 0.32 39137.90 43959.40 0.89 852.40 14504.03 0.06
3007.90 15219.90 0.20 6038.00 103224.00 0.06 40280.20 45829.70 0.88 655.10 15172.54 0.04
4722.00 17213.80 0.27 25648.00 72024.00 0.36 39808.60 49699.20 0.80 -3345.95 10711.48 -0.31
-2406.80 19740.80 -0.12 31203.00 90103.00 0.35 9790.50 47840.70 0.20 -1397.41 6066.39 -0.23

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

csh frm oper. T.L. ratio csh frm T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio
oper.
-1139.92 2301.40 -0.50 -2018.44 15618.80 -0.13 2336.49 8316.36 0.28 -343.01 7110.16 -0.05
-1224.34 2787.96 -0.44 -1322.28 14412.55 -0.09 2,979.75 9527.23 0.31 1747.47 14920.78 0.12
-4534.95 3722.61 -1.22 -1502.02 19606.83 -0.08 2,734.95 11665.27 0.23 1603.38 13388.68 0.12
-754.66 5798.26 -0.13 -790.93 24745.63 -0.03 4,145.71 12794.67 0.32 1594.90 16193.83 0.10
-569.24 6152.26 -0.09 1314.20 27859.63 0.05 3,727.64 14497.46 0.26 -2672.68 12096.44 -0.22
-1011.13 6606.64 -0.15 -1214.54 19244.75 -0.06 3,219.49 13689.78 0.24 -1550.79 11990.75 -0.13
-796.81 2534.68 -0.31 -1,479.34 11493.89 -0.13 5,470.50 13076.40 0.42 -142.60 21177.57 -0.01
-1200.60 1956.46 -0.61 310.35 11948.92 0.03 3,971.18 13668.75 0.29 1248.58 20884.72 0.06
67.44 1783.57 0.04 764.63 12336.87 0.06 7,027.08 17152.66 0.41 1,512.14 13199.47 0.11
65.23 39979.54 0.00 89.31 13781.34 0.01 4,923.87 18487.83 0.27 4,856.77 7376.56 0.66

246
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
csh frm oper. T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio
30318.00 45262 0.67 3999.58 32148.01 0.12 -2364.79 5210.25 -0.45 10,829.57 29,936.91 0.36
30503.00 45535 0.67 2902.83 42996.12 0.07 -2967.01 5427.59 -0.55 3,469.15 33,034.94 0.11
25,599 71148 0.36 7984.49 50521.38 0.16 1338.28 17911.75 0.07 7,448.70 38,081.06 0.20
43,842 81091 0.54 -4816.99 60788.17 -0.08 8385.53 8826.44 0.95 -2,540.31 39,478.35 -0.06
49,036 96217 0.51 -128.16 55841.35 0.00 -509.37 6924.72 -0.07 16,193.53 37,419.61 0.43
64,106 98468 0.65 16785.64 47775.05 0.35 -1784.22 8743.03 -0.20 6,876.58 39,218.31 0.18
84,845 120558 0.70 812.91 55933.45 0.01 -1169.12 7938.22 -0.15 -1,174.93 38,655.57 -0.03
102,847 148222 0.69 -767.80 61635.26 -0.01 -612.76 6937.13 -0.09 11,800.17 38,011.95 0.31
117,850 176128 0.67 5515.62 77429.92 0.07 -98.25 4133.17 -0.02 12,062.14 38,155.29 0.32
65,932 167903 0.39 -2764.50 55912.19 -0.05 -910.49 4124.33 -0.22 -3,278.81 58,860.54 -0.06

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

csh frm oper. T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio csh frm oper. T.L. ratio
10474.04 38175.90 0.27 6400.18 35475.77 0.18 338.91 1821.93 0.19 1515.85 6675.59 0.23
4195.06 54025.33 0.08 1505.56 34177.15 0.04 202.40 1858.25 0.11 5143.22 8374.80 0.61
33.34 636.96 0.05 3653.59 34893.27 0.10 440.85 1944.90 0.23 -955.88 11667.48 -0.08
74.73 621.95 0.12 2258.44 33049.93 0.07 418.12 1894.60 0.22 4991.10 9145.70 0.55
90.93 600.97 0.15 2463.46 30557.77 0.08 523.79 2149.42 0.24 13101.07 15785.96 0.83
85.47 603.69 0.14 -2562.67 35080.58 -0.07 84.84 2958.84 0.03 2598.06 10860.01 0.24
129.42 630.55 0.21 2702.98 33413.89 0.08 941.09 2993.84 0.31 8518.08 11329.63 0.75
167.95 647.50 0.26 1381.47 37727.45 0.04 723.93 3496.34 0.21 8950.00 12959.51 0.69
-59.50 1129.82 -0.05 4133.94 39041.32 0.11 1297.32 4275.82 0.30 3336.93 18941.00 0.18
174.34 1043.99 0.17 6292.63 38747.11 0.16 1097.78 5022.04 0.22 4318.19 15835.30 0.27

247
SHORT TERM DEBT COVERAGE RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm S.T.DEBT ratio csh frm oper. S.T.DEBT ratio csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio
oper. oper. oper.
109016.82 71156.68 1.53 958.02 2317.16 0.41 27371.10 3016.20 9.07 437.50 105.60 4.14
59138.27 118229.75 0.50 1672.56 600.00 2.79 20372.20 1578.40 12.91 843.40 31.10 27.12
111706.37 10,175.00 10.98 1879.37 388.65 4.84 29599.10 0.00 0.00 1902.40 200.10 9.51
72829.96 76,698.25 0.95 4066.00 0.00 0.00 21343.70 0.00 0.00 3688.10 40.00 92.20
55643.01 58,740.81 0.95 3070.86 0.00 0.00 35457.10 0.00 0.00 6859.60 0.00 0.00
176655.19 2,500.00 70.66 3578.90 0.00 0.00 21473.20 0.00 0.00 19833.60 225.70 87.88
167561.23 2,500.00 67.02 1086.48 0.00 0.00 36454.10 0.00 0.00 14743.30 225.70 65.32
215477.12 19,863.78 10.85 7229.82 0.00 0.00 33392.00 0.00 0.00 17618.60 0.00 0.00
541835.18 10000.00 54.18 2610.73 0.00 0.00 42607.90 0.00 0.00 25153.90 859.80 29.26
-36265.00 10000.00 -3.63 3454.76 0.00 0.00 24895.30 0.00 0.00 16107.20 763.80 21.09

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio csh frm oper. S.T.DEBT ratio csh frm S.T.DEBT ratio
oper. oper. oper.
852.20 148.20 5.75 5,867.24 8,582.83 0.68 26866.40 660.30 40.69 1068.39 5933.25 0.18
1871.40 127.30 14.70 7286.98 13042.95 0.56 22881.10 324.10 70.60 -8822.59 9063.89 -0.97
553.90 2902.80 0.19 -13921.61 0.00 0.00 23597.80 0.00 0.00 - 9771.49 -1.02
10003.21
553.90 2061.00 0.27 8325.65 0.00 0.00 18904.30 0.00 0.00 - 7170.79 -1.52
10906.14
3283.00 3026.00 1.08 12066.77 0.00 0.00 29634.10 0.00 0.00 -2406.25 1878.40 -1.28
98.00 2142.30 0.05 22596.98 0.00 0.00 22500.00 0.00 0.00 3315.41 238.87 13.88
2291.40 2559.37 0.90 26324.99 0.00 0.00 39137.90 0.00 0.00 852.40 280.90 3.03
3007.90 1499.83 2.01 6038.00 19647.00 0.31 40280.20 0.00 0.00 655.10 416.15 1.57
4722.00 0.00 0.00 25648.00 0.00 0.00 39808.60 0.00 0.00 -3345.95 0.00 0.00
-2406.80 2692.30 -0.89 31203.00 5087.00 6.13 9790.50 0.00 0.00 -1397.41 0.00 0.00

248
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio
oper. oper. oper. oper.
-1139.92 0.00 0.00 -2018.44 10483.59 -0.19 2336.49 2277.70 1.03 -343.01 2875.01 -0.12
-1224.34 0.00 0.00 -1322.28 10762.54 -0.12 2,979.75 1,998.06 1.49 1747.47 2157.51 0.81
-4534.95 0.00 0.00 -1502.02 1906.07 -0.79 2,734.95 0.39 7012.69 1603.38 872.17 1.84
-754.66 0.00 0.00 -790.93 3559.21 -0.22 4,145.71 54.63 75.89 1594.90 1093.33 1.46
-569.24 0.00 0.00 1314.20 2037.03 0.65 3,727.64 0.74 5037.35 -2672.68 660.95 -4.04
-1011.13 0.00 0.00 -1214.54 2008.34 -0.60 3,219.49 106.25 30.30 -1550.79 660.10 -2.35
-796.81 0.00 0.00 -1,479.34 2,172.25 -0.68 5,470.50 348.13 15.71 -142.60 1876.43 -0.08
-1200.60 0.00 0.00 310.35 2,309.48 0.13 3,971.18 503.44 7.89 1248.58 1686.38 0.74
67.44 0.00 0.00 764.63 2,508.56 0.30 7,027.08 668.47 10.51 1,512.14 0.00 0.00
65.23 0.00 0.00 89.31 2,333.37 0.04 4,923.87 448.54 10.98 4,856.77 0.00 0.00

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio csh frm S.T.DEBT ratio csh frm S.T.DEBT Ratio
oper. oper. oper. oper.
30318.00 7949.00 3.81 3999.58 3843.00 1.04 -2364.79 4723.76 -0.50 10,829.57 8,000.00 1.35
30503.00 2781.00 10.97 2902.83 3546.93 0.82 -2967.01 8654.99 -0.34 3,469.15 8,500.00 0.41
25,599 10,783 2.37 7984.49 9673.15 0.83 1338.28 1307.49 1.02 7,448.70 10000 0.74
43,842 8,463 5.18 -4816.99 5832.08 -0.83 8385.53 1264.04 6.63 -2,540.31 16209.33 -0.16
49,036 12,247 4.00 -128.16 15729.44 -0.01 -509.37 209.63 -2.43 16,193.53 0.00 0.00
64,106 354 181.09 16785.64 11064.38 1.52 -1784.22 1059.94 -1.68 6,876.58 2,229.43 3.08
84,845 774 109.62 812.91 14382.21 0.06 -1169.12 886.03 -1.32 -1,174.93 5,500.00 -0.21
102,847 4,836 21.27 -767.80 16296.98 -0.05 -612.76 1275.75 -0.48 11,800.17 511.29 23.08
117,850 1,108 106.36 5515.62 10125.36 0.54 -98.25 889.10 -0.11 12,062.14 7,000.00 1.72
65,932 1,496 44.07 -2764.50 10302.65 -0.27 -910.49 1154.71 -0.79 -3,278.81 11,006.85 -0.30

249
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
csh frm oper. S.T.DEBT ratio csh frm oper. S.T.DEBT ratio csh frm oper. S.T.DEBT ratio csh frm S.T.DEBT ratio
oper.
10474.04 8655.48 1.21 6400.18 8851.94 0.72 338.91 173.31 1.96 1515.85 849.22 1.78
4195.06 6372.75 0.66 1505.56 8132.70 0.19 202.40 219.49 0.92 5143.22 991.66 5.19
33.34 218.56 0.15 3653.59 3007.13 1.21 440.85 235.53 1.87 -955.88 1599.00 -
0.60
74.73 257.58 0.29 2258.44 6216.91 0.36 418.12 51.72 8.08 4991.10 0.00 0.00
90.93 203.11 0.45 2463.46 4769.08 0.52 523.79 33.47 15.65 13101.07 0.00 0.00
85.47 220.31 0.39 -2562.67 7762.01 -0.33 84.84 399.76 0.21 2598.06 0.00 0.00
129.42 180.57 0.72 2702.98 3654.72 0.74 941.09 264.23 3.56 8518.08 0.00 0.00
167.95 150.26 1.12 1381.47 5375.52 0.26 723.93 616.38 1.17 8950.00 0.00 0.00
-59.50 309.41 -0.19 4133.94 3099.87 1.33 1297.32 719.35 1.80 3336.93 0.00 0.00
174.34 295.17 0.59 6292.63 3617.72 1.74 1097.78 668.82 1.64 4318.19 0.00 0.00

LONG TERM DEBT COVERAGE RATIOFFF

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio
oper. oper. oper. oper.
109016.82 149232.5 0.73 958.02 0.00 0.00 27371.10 253.30 108.06 437.50 65.00 6.73
59138.27 138596.73 0.43 1672.56 0.00 0.00 20372.20 1338.80 15.22 843.40 143.60 5.87
111706.37 229335.11 0.49 1879.37 0.00 0.00 29599.10 974.80 30.36 1902.40 0.00 0.00
72829.96 273784.18 0.27 4066.00 0.00 0.00 21343.70 712.70 29.95 3688.10 0.00 0.00
55643.01 329,650.51 0.17 3070.86 0.00 0.00 35457.10 577.40 61.41 6859.60 0.00 0.00
176655.19 256,633.61 0.69 3578.90 0.00 0.00 21473.20 1117.70 19.21 19833.60 0.00 0.00
167561.23 182,104.44 0.92 1086.48 0.00 0.00 36454.10 1624.80 22.44 14743.30 0.00 0.00
215477.12 114,632.19 1.88 7229.82 0.00 0.00 33392.00 0.00 0.00 17618.60 0.00 0.00
541835.18 51255.00 10.57 2610.73 0.00 0.00 42607.90 0.00 0.00 25153.90 0.00 0.00
-36265.00 29840.00 -1.22 3454.76 0.00 0.00 24895.30 0.00 0.00 16107.20 0.00 0.00

250
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm oper. L.T.DEBT ratio
oper. oper. oper.
852.20 2837.80 0.30 5,867.24 6,200.27 0.95 26866.40 0.00 0.00 1068.39 3069.27 0.35
1871.40 3598.70 0.52 7286.98 11,907.78 0.61 22881.10 0.00 0.00 -8822.59 4052.84 -2.18
553.90 1696.50 0.33 -13921.61 30,337.90 -0.46 23597.80 0.00 0.00 -10003.21 2954.03 -3.39
553.90 1443.00 0.38 8325.65 4,198.70 1.98 18904.30 0.00 0.00 -10906.14 0.00 0.00
3283.00 1058.10 3.10 12066.77 2,038.25 5.92 29634.10 0.00 0.00 -2406.25 0.00 0.00
98.00 875.30 0.11 22596.98 1,073.00 21.06 22500.00 0.00 0.00 3315.41 1368.67 2.42
2291.40 458.23 5.00 26324.99 264.00 99.72 39137.90 0.00 0.00 852.40 684.33 1.25
3007.90 652.87 4.61 6038.00 199.00 30.34 40280.20 0.00 0.00 655.10 0.00 0.00
4722.00 136.80 34.52 25648.00 0.00 0.00 39808.60 0.00 0.00 -3345.95 0.00 0.00
-2406.80 1.50 1604.53 31203.00 20,563.00 1.52 9790.50 0.00 0.00 -1397.41 0.00 0.00

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio
oper. oper. oper. oper.
-1139.92 0.00 0.00 -2018.44 2560.66 -0.79 2336.49 602.45 3.88 -343.01 1330.10 -0.26
-1224.34 0.00 0.00 -1322.28 2428.95 -0.54 2,979.75 407.23 7.32 1747.47 9381.50 0.19
-4534.95 0.00 0.00 -1502.02 12405.70 -0.12 2,734.95 3173.83 0.86 1603.38 8285.50 0.19
-754.66 0.00 0.00 -790.93 4233.83 -0.19 4,145.71 3172.44 1.31 1594.90 9553.37 0.17
-569.24 0.00 0.00 1314.20 5253.25 0.25 3,727.64 3744.42 1.00 -2672.68 8360.85 -0.32
-1011.13 0.00 0.00 -1214.54 4524.78 -0.27 3,219.49 2514.13 1.28 -1550.79 9499.14 -0.16
-796.81 0.00 0.00 -1,479.34 4809.80 -0.31 5,470.50 1495.42 3.66 -142.60 15379.95 -0.01
-1200.60 0.00 0.00 310.35 4448.87 0.07 3,971.18 2233.99 1.78 1248.58 14634.35 0.09
67.44 0.00 0.00 764.63 2502.16 0.31 7,027.08 2195.90 3.20 1,512.14 10237.52 0.15
65.23 0.00 0.00 89.31 3478.72 0.03 4,923.87 2031.78 2.42 4,856.77 5470.89 0.89

251
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm oper. L.T.DEBT ratio
oper. oper. oper.
30318.00 265.00 114.41 3999.58 16288.79 0.25 -2364.79 578.67 -4.09 10,829.57 463.37 23.37
30503.00 312.00 97.77 2902.83 26183.01 0.11 -2967.01 429.70 -6.90 3,469.15 0.00 0.00
25,599 0.00 0.00 7984.49 16938.75 0.47 1338.28 4211.72 0.32 7,448.70 0.00 0.00
43,842 5429.00 8.08 -4816.99 34130.11 -0.14 8385.53 151.20 55.46 -2,540.31 0.00 0.00
49,036 4604.00 10.65 -128.16 25035.80 -0.01 -509.37 2113.40 -0.24 16,193.53 0.00 0.00
64,106 1448.00 44.27 16785.64 16407.35 1.02 -1784.22 2189.00 -0.82 6,876.58 0.00 0.00
84,845 0.00 0.00 812.91 16897.63 0.05 -1169.12 1789.00 -0.65 -1,174.93 0.00 0.00
102,847 0.00 0.00 -767.80 13140.67 -0.06 -612.76 1389.00 -0.44 11,800.17 3,352.58 3.52
117,850 0.00 0.00 5515.62 9154.71 0.60 -98.25 989.00 -0.10 12,062.14 11,848.93 1.02
65,932 0.00 0.00 -2764.50 4690.03 -0.59 -910.49 1200.00 -0.76 -3,278.81 10,423.70 -0.31

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

csh frm oper. L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm L.T.DEBT ratio csh frm oper. L.T.DEBT Ratio
oper. oper.
10474.04 20213.96 0.52 6400.18 7742.60 0.83 338.91 829.98 0.41 1515.85 230.99 6.56
4195.06 29675.25 0.14 1505.56 7766.05 0.19 202.40 565.93 0.36 5143.22 0.00 0.00
33.34 109.16 0.31 3653.59 8004.50 0.46 440.85 479.93 0.92 -955.88 0.00 0.00
74.73 129.92 0.58 2258.44 8051.78 0.28 418.12 494.14 0.85 4991.10 0.00 0.00
90.93 96.30 0.94 2463.46 9746.45 0.25 523.79 442.41 1.18 13101.07 0.00 0.00
85.47 106.58 0.80 -2562.67 12318.96 -0.21 84.84 518.98 0.16 2598.06 0.00 0.00
129.42 98.90 1.31 2702.98 10599.96 0.25 941.09 494.23 1.90 8518.08 0.00 0.00
167.95 121.60 1.38 1381.47 13686.09 0.10 723.93 468.76 1.54 8950.00 0.00 0.00
-59.50 278.07 -0.21 4133.94 13155.91 0.31 1297.32 317.62 4.08 3336.93 0.00 0.00
174.34 383.64 0.45 6292.63 13919.81 0.45 1097.78 709.12 1.55 4318.19 0.00 0.00

252
CASH FLOW COVERAGE RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm oper. total debt Ratio csh frm oper. total debt ratio csh frm total ratio csh frm total Ratio
oper. debt oper. debt
109016.82 220389.18 0.49 958.02 2317.16 0.41 27371.10 13385.8 2.04 437.50 174.70 2.50
0
59138.27 256826.48 0.23 1672.56 600.00 2.79 20372.20 3251.50 6.27 843.40 170.60 4.94
111706.37 239510.11 0.47 1879.37 388.65 4.84 29599.10 974.80 30.36 1902.40 200.10 9.51
72829.96 350482.43 0.21 4066.00 0.00 0.00 21343.70 712.70 29.95 3688.10 40.00 92.20
55643.01 388391.32 0.14 3070.86 0.00 0.00 35457.10 577.40 61.41 6859.60 0.00 0.00
176655.19 259133.61 0.68 3578.90 0.00 0.00 21473.20 1117.70 19.21 19833.60 225.70 87.88
167561.23 198437.55 0.84 1086.48 0.00 0.00 36454.10 1624.80 22.44 14743.30 225.70 65.32
215477.12 134495.97 1.60 7229.82 0.00 0.00 33392.00 0.00 0.00 17618.60 0.00 0.00
541835.18 51568.72 10.51 2610.73 0.00 0.00 42607.90 0.00 0.00 25153.90 859.80 29.26
-36265.00 39840.00 -0.91 3454.76 0.00 0.00 24895.30 0.00 0.00 16107.20 763.80 21.09

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

csh frm oper. total debt ratio csh frm oper. total debt ratio csh frm oper. total ratio csh frm total Ratio
debt oper. debt
852.20 2986.00 0.29 5,867.24 14,783.1 0.40 26866.40 660.3 40.69 1068.39 9002.52 0.12
1871.40 3726.00 0.50 7286.98 24950.72 0.29 22881.10 324.1 70.60 -8822.59 13116.7 -0.67
0
553.90 4599.30 0.12 -13921.61 30337.90 -0.46 23597.80 0.00 0.00 -10003.21 12725.5 -0.79
553.90 4599.30 0.12 8325.65 4198.70 1.98 18904.30 0.00 0.00 -10906.14 7170.79 -1.52
3283.00 3504.00 0.94 12066.77 2038.25 5.92 29634.10 0.00 0.00 -2406.25 1878.40 -1.28
98.00 4084.10 0.02 22596.98 1073.00 21.06 22500.00 0.00 0.00 3315.41 1607.54 2.06
2291.40 3017.60 0.76 26324.99 264.00 99.72 39137.90 0.00 0.00 852.40 965.23 0.88
3007.90 2152.70 1.40 6038.00 19846.00 0.30 40280.20 0.00 0.00 655.10 416.15 1.57
4722.00 136.80 34.5 25648.00 0.00 0.00 39808.60 0.00 0.00 -3345.95 0.00 0.00
2
-2406.80 2693.80 -0.89 31203.00 25650.00 1.22 9790.50 0.00 0.00 -1397.41 0.00 0.00

253
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
csh frm total ratio csh frm oper. total debt ratio csh frm oper. total debt ratio csh frm total debt Ratio
oper. debt oper.
-1139.92 0 0.00 -2018.44 13044.25 -0.15 2336.49 2880.15 0.81 -343.01 3905.11 -0.09
-1224.34 0 0.00 -1322.28 13191.49 -0.10 2,979.75 2,405.29 1.24 1747.47 11539.02 0.15
-4534.95 0 0.00 -1502.02 14311.77 -0.10 2,734.95 3174.22 0.86 1603.38 9157.67 0.18
-754.66 0 0.00 -790.93 7793.04 -0.10 4,145.71 3227.07 1.28 1594.90 10646.71 0.15
-569.24 0 0.00 1314.20 7290.28 0.18 3,727.64 3745.16 1.00 -2672.68 9021.80 -0.30
-1011.13 0 0.00 -1214.54 6533.12 -0.19 3,219.49 2620.38 1.23 -1550.79 10159.24 -0.15
-796.81 0 0.00 -1,479.34 6982.05 -0.21 5,470.50 1843.55 2.97 -142.60 17256.38 -0.01
-1200.60 0 0.00 310.35 6758.35 0.05 3,971.18 2737.43 1.45 1248.58 16320.73 0.08
67.44 0 0.00 764.63 5010.72 0.15 7,027.08 2864.37 2.45 1,512.14 10,237.52 0.15
65.23 0 0.00 89.31 5812.09 0.02 4,923.87 2480.32 1.99 4,856.77 5,470.89 0.89

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

csh frm total debt ratio csh frm oper. total debt ratio csh frm total debt ratio csh frm total debt ratio
oper. oper. oper.
30318.00 8214.00 3.69 3999.58 20131.79 0.20 -2364.79 5302.43 -0.45 10,829.57 8463.37 1.28
30503.00 3093.00 9.86 2902.83 29729.94 0.10 -2967.01 9084.69 -0.33 3,469.15 8,500.00 0.41
25,599 10783.00 2.37 7984.49 26611.90 0.30 1338.28 5519.21 0.24 7,448.70 10,000.00 0.74
43,842 13892.00 3.16 -4816.99 39962.19 -0.12 8385.53 1415.24 5.93 -2,540.31 16,209.33 -0.16
49,036 16851.00 2.91 -128.16 25721.29 0.00 -509.37 2323.03 -0.22 16,193.53 0.00 0.00
64,106 1802.00 35.57 16785.64 19431.28 0.86 -1784.22 3248.94 -0.55 6,876.58 2,229.43 3.08
84,845 774 109.62 812.91 31279.84 0.03 -1169.12 2675.03 -0.44 -1,174.93 5,500.00 -0.21
102,847 4,836 21.27 -767.80 29437.65 -0.03 -612.76 2664.75 -0.23 11,800.17 3,863.87 3.05
117,850 1,108 106.36 5515.62 19280.31 0.29 -98.25 989.00 -0.10 12,062.14 4,012.06 3.01
65,932 1,496 44.07 -2764.50 14992.68 -0.18 -910.49 1200.00 -0.76 -3,278.81 18,848.93 -0.17

254
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
csh frm oper. total debt ratio csh frm oper. total debt ratio csh frm oper. total debt ratio csh frm oper. total debt Ratio
10474.04 28869.44 0.36 6400.18 16594.54 0.39 338.91 1003.29 0.34 1515.85 1080.21 1.40
4195.06 36048.00 0.12 1505.56 15898.75 0.09 202.40 785.42 0.26 5143.22 991.66 5.19
33.34 327.72 0.10 3653.59 11011.63 0.33 440.85 715.46 0.62 -955.88 1599.00 -0.60
74.73 387.50 0.19 2258.44 14268.69 0.16 418.12 545.86 0.77 4991.10 0.00 0.00
90.93 299.41 0.30 2463.46 14515.53 0.17 523.79 475.88 1.10 13101.07 0.00 0.00
85.47 326.89 0.26 -2562.67 20080.97 - 84.84 918.74 0.09 2598.06 0.00 0.00
0.13
129.42 279.47 0.46 2702.98 14254.68 0.19 941.09 758.46 1.24 8518.08 0.00 0.00
167.95 271.86 0.62 1381.47 19061.38 0.07 723.93 1085.14 0.67 8950.00 0.00 0.00
-59.50 587.48 - 4133.94 16255.78 0.25 1297.32 1036.97 1.25 3336.93 0.00 0.00
0.10
174.34 678.81 0.26 6292.63 17537.53 0.36 1097.78 1377.94 0.80 4318.19 0.00 0.00

CASH FLOW MARGIN RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm oper. net sales Ratio csh frm oper. net sales ratio csh frm net sales ratio csh frm net sales ratio
oper. oper.
109016.82 724471.05 0.15 958.02 11984.74 0.08 27371.10 115085.00 0.24 437.50 4384.70 0.10
59138.27 1111770.90 0.05 1672.56 20158.71 0.08 20372.20 159981.20 0.13 843.40 6664.50 0.13
111706.37 1284199.32 0.09 1879.37 29882.21 0.06 29599.10 188802.70 0.16 1902.40 10492.60 0.18
72829.96 1248120.00 0.06 4066.00 36285.98 0.11 21343.70 194889.60 0.11 3688.10 17024.70 0.22
55643.01 994342.67 0.06 3070.86 42925.60 0.07 35457.10 197176.40 0.18 6859.60 30312.20 0.23
176655.19 1356218.36 0.13 3578.90 49007.23 0.07 21473.20 211039.30 0.10 19833.60 61880.30 0.32
167561.23 1882158.21 0.09 1086.48 52801.10 0.02 36454.10 222527.80 0.16 14743.30 69838.60 0.21
215477.12 2146793.92 0.10 7229.82 47219.90 0.15 33392.00 226948.70 0.15 17618.60 79440.60 0.22
541835.18 2652451.19 0.20 2610.73 56457.20 0.05 42607.90 250986.40 0.17 25153.90 91677.30 0.27
-36265.00 2905495.00 -0.01 3454.76 66134.76 0.05 24895.30 295672.50 0.08 16107.20 97151.60 0.17

255
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
csh frm oper. net sales ratio csh frm oper. net sales ratio csh frm net sales ratio csh frm net sales Ratio
oper. oper.
852.20 27457.30 0.03 5,867.24 95,603.40 0.06 26866.40 157581.80 0.17 1068.39 57315.24 0.02
1871.40 32101.50 0.06 7286.98 148143.74 0.05 22881.10 192450.30 0.12 -8822.59 66152.71 -0.13
553.90 38938.80 0.01 -13921.61 208500.58 -0.07 23597.80 233680.50 0.10 -10003.21 49547.57 -0.20
553.90 38938.80 0.01 8325.65 197272.21 0.04 18904.30 235827.40 0.08 -10906.14 72289.45 -0.15
3283.00 62915.10 0.05 12066.77 202162.67 0.06 29634.10 251249.10 0.12 -2406.25 18278.11 -0.13
98.00 39858.30 0.00 22596.98 236372.25 0.10 22500.00 273506.00 0.08 3315.41 1509.94 2.20
2291.40 34772.10 0.07 26324.99 305979.39 0.09 39137.90 281604.80 0.14 852.40 81.29 10.49
3007.90 41675.80 0.07 6038.00 349457.00 0.02 40280.20 308461.20 0.13 655.10 102.21 6.41
4722.00 50159.70 0.09 25648.00 353101.00 0.07 39808.60 328718.20 0.12 -3345.95 0.00 0.00
-2406.80 61963.60 -0.04 31203.00 365210.00 0.09 9790.50 336505.40 0.03 -1397.41 53.97 -25.89

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

csh frm net sales Ratio csh frm net sales ratio csh frm oper. net sales ratio csh frm oper. net sales ratio
oper. oper.
-1139.92 414.88 -2.75 -2018.44 4905.69 -0.41 2336.49 18038.05 0.13 -343.01 12767.87 -0.03
-1224.34 619.61 -1.98 -1322.28 9092.65 -0.15 2,979.75 22,757.51 0.13 1747.47 14806.53 0.12
-4534.95 667.83 -6.79 -1502.02 8306.83 -0.18 2,734.95 31,392.03 0.09 1603.38 16466.85 0.10
-754.66 669.96 -1.13 -790.93 8021.60 -0.10 4,145.71 39,903.12 0.10 1594.90 15342.89 0.10
-569.24 417.89 -1.36 1314.20 5732.10 0.23 3,727.64 39,963.36 0.09 -2672.68 10462.16 -0.26
-1011.13 695.58 -1.45 -1214.54 5332.43 -0.23 3,219.49 38,391.61 0.08 -1550.79 11174.41 -0.14
-796.81 897.41 -0.89 -1,479.34 6,037.65 -0.25 5,470.50 43,638.90 0.13 -142.60 12363.15 -0.01
-1200.60 849.56 -1.41 310.35 7,949.80 0.04 3,971.18 47,096.04 0.08 1248.58 17679.67 0.07
67.44 1264.04 0.05 764.63 10,256.16 0.07 7,027.08 49,444.99 0.14 1,512.14 896.64 1.69
65.23 1449.52 0.05 89.31 11,577.35 0.01 4,923.87 53,614.00 0.09 4,856.77 8,145.58 0.60

256
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
csh frm net sales ratio csh frm net sales ratio csh frm oper. net sales ratio csh frm oper. net sales ratio
oper. oper.
30318.00 289585.00 0.10 3999.58 14994.13 0.27 -2364.79 13003.60 -0.18 10,829.57 71,675.94 0.15
30503.00 361282.00 0.08 2902.83 22743.79 0.13 -2967.01 15998.82 -0.19 3,469.15 88,508.97 0.04
25,599 347059 0.07 7984.49 26715.43 0.30 1338.28 20798.97 0.06 7,448.70 103,583.11 0.07
43,842 426126 0.10 -4816.99 24083.21 -0.20 8385.53 18973.44 0.44 -2,540.31 100,210.16 -0.03
49,036 426,448 0.11 -128.16 16137.50 -0.01 -509.37 17487.01 -0.03 16,193.53 87,566.09 0.18
64,106 486,055 0.13 16785.64 16623.32 1.01 -1784.22 15193.20 -0.12 6,876.58 109,808.54 0.06
84,845 650,546 0.13 812.91 9996.48 0.08 -1169.12 13903.03 -0.08 -1,174.93 115,716.12 -0.01
102,847 772,662 0.13 -767.80 3553.65 -0.22 -612.76 9644.33 -0.06 11,800.17 136,063.24 0.09
117,850 819,944 0.14 5515.62 2006.54 2.75 -98.25 5055.27 -0.02 12,062.14 151,618.97 0.08
65,932 860,203 0.08 -2764.50 1650.20 -1.68 -910.49 6385.20 -0.14 -3,278.81 117,413.99 -0.03

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

csh frm oper. net sales ratio csh frm oper. net sales ratio csh frm oper. net sales ratio csh frm oper. net sales ratio
10474.04 48796.19 0.21 6400.18 35593.05 0.18 338.91 4363.11 0.08 1515.85 34453.65 0.04
4195.06 76282.46 0.05 1505.56 48040.46 0.03 202.40 6179.48 0.03 5143.22 42531.05 0.12
33.34 1017.00 0.03 3653.59 54306.56 0.07 440.85 7141.52 0.06 -955.88 53064.04 -0.02
74.73 1018.56 0.07 2258.44 44765.72 0.05 418.12 7065.00 0.06 4991.10 48165.87 0.10
90.93 1196.76 0.08 2463.46 34288.11 0.07 523.79 7965.94 0.07 13101.07 62421.87 0.21
85.47 1346.11 0.06 -2562.67 36294.74 - 84.84 10098.22 0.01 2598.06 55159.73 0.05
0.07
129.42 1527.94 0.08 2702.98 47383.61 0.06 941.09 12090.92 0.08 8518.08 64667.04 0.13
167.95 1515.35 0.11 1381.47 49100.41 0.03 723.93 13190.06 0.05 8950.00 69512.04 0.13
-59.50 1672.29 - 4133.94 58689.81 0.07 1297.32 15518.63 0.08 3336.93 76395.35 0.04
0.04
174.34 1833.07 0.10 6292.63 69202.76 0.09 1097.78 18209.92 0.06 4318.19 61479.94 0.07

257
ASSET EFFICIENT RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

csh frm oper. total asset ratio csh frm oper. total asset ratio csh frm total asset ratio csh frm total ratio
oper. oper. asset
109016.82 927686.81 0.12 958.02 7736.43 0.12 27371.10 87337.00 0.31 437.50 5600.90 0.08
59138.27 1058900.00 0.06 1672.56 7465.25 0.22 20372.20 93883.50 0.22 843.40 7818.70 0.11
111706.37 1191574.71 0.09 1879.37 9662.72 0.19 29599.10 110810.70 0.27 1902.40 10242.40 0.19
72829.96 1309670.21 0.06 4066.00 12295.16 0.33 21343.70 124786.20 0.17 3688.10 14831.80 0.25
55643.01 1280799.57 0.04 3070.86 14460.13 0.21 35457.10 147476.00 0.24 6859.60 22288.90 0.31
176655.19 1331149.02 0.13 3578.90 17742.48 0.20 21473.20 155623.20 0.14 19833.60 34180.00 0.58
167561.23 1338552.14 0.13 1086.48 22150.27 0.05 36454.10 156727.60 0.23 14743.30 36239.10 0.41
215477.12 1379955.61 0.16 7229.82 24549.10 0.29 33392.00 208148.90 0.16 17618.60 55218.40 0.32
541835.18 1658608.22 0.33 2610.73 29930.23 0.09 42607.90 238194.90 0.18 25153.90 77946.70 0.32
-36265.00 1822440.00 - 3454.76 35347.47 0.10 24895.30 273803.90 0.09 16107.20 94774.10 0.17
0.02

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

csh frm oper. total asset ratio csh frm oper. total asset ratio csh frm total asset ratio csh frm total ratio
oper. oper. asset
852.20 29022.40 0.03 5,867.24 78,773.42 0.07 26866.40 85230.90 0.32 1068.39 38039.42 0.03
1871.40 31307.10 0.06 7286.98 104766.77 0.07 22881.10 108446.90 0.21 -8822.59 42029.67 -0.21
553.90 34159.10 0.02 -13921.61 166436.68 - 23597.80 98889.20 0.24 -10003.21 35248.17 -0.28
0.08
553.90 34159.10 0.02 8325.65 170783.36 0.05 18904.30 96416.50 0.20 -10906.14 26682.17 -0.41
3283.00 37927.00 0.09 12066.77 177187.51 0.07 29634.10 100973.00 0.29 -2406.25 18898.73 -0.13
98.00 33870.90 0.00 22596.98 197168.23 0.11 22500.00 105217.00 0.21 3315.41 7047.22 0.47
2291.40 33363.30 0.07 26324.99 229385.82 0.11 39137.90 123406.90 0.32 852.40 5158.62 0.17
3007.90 35131.50 0.09 6038.00 269765.00 0.02 40280.20 146942.60 0.27 655.10 3913.28 0.17
4722.00 42694.90 0.11 25648.00 251903.00 0.10 39808.60 167388.00 0.24 -3345.95 5040.10 -0.66
-2406.80 49969.40 - 31203.00 283590.00 0.11 9790.50 176411.90 0.06 -1397.41 3039.69 -0.46
0.05

258
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
csh frm oper. total asset ratio csh frm oper. total asset ratio csh frm oper. total asset ratio csh frm total asset ratio
oper.
-1139.92 22355.95 -0.05 -2018.44 25768.97 -0.08 2336.49 16143.13 0.14 -343.01 12465.44 -
0.03
-1224.34 23819.62 -0.05 -1322.28 24079.86 -0.05 2,979.75 19,840.62 0.15 1747.47 20985.33 0.08
-4534.95 23972.35 -0.19 -1502.02 24704.59 -0.06 2,734.95 23,769.96 0.12 1603.38 21368.33 0.08
-754.66 28257.95 -0.03 -790.93 31752.48 -0.02 4,145.71 27,453.59 0.15 1594.90 23588.82 0.07
-569.24 30028.99 -0.02 1314.20 26201.40 0.05 3,727.64 31,288.65 0.12 -2672.68 25472.28 -
0.10
-1011.13 31832.60 -0.03 -1214.54 23435.99 -0.05 3,219.49 32,944.87 0.10 -1550.79 28003.45 -
0.06
-796.81 33733.97 -0.02 -1,479.34 16,251.34 -0.09 5,470.50 35,499.57 0.15 -142.60 38119.97 0.00
-1200.60 34411.63 -0.03 310.35 15,819.71 0.02 3,971.18 39,338.31 0.10 1248.58 36846.98 0.03
67.44 824310.56 0.00 764.63 15,543.43 0.05 7,027.08 47,446.70 0.15 1,512.14 54,464.01 0.03
65.23 1172301.08 0.00 89.31 16,105.79 0.01 4,923.87 52,697.06 0.09 4,856.77 45,242.60 0.11

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

csh frm oper. total asset ratio csh frm total asset ratio csh frm oper. total asset ratio csh frm total asset Ratio
oper. oper.
30318.00 163613.00 0.19 3999.58 50978.83 0.08 -2364.79 8373.78 -0.28 10,829.57 48,909.96 0.22
30503.00 184210.00 0.17 2902.83 112815.51 0.03 -2967.01 8664.24 -0.34 3,469.15 54,313.70 0.06
25,599 223,022 0.11 7984.49 121565.62 0.07 1338.28 10063.80 0.13 7,448.70 62,201.38 0.12
43,842 266,880 0.16 -4816.99 112113.03 -0.04 8385.53 9536.00 0.88 -2,540.31 65,887.47 -0.04
49,036 305,997 0.16 -128.16 105703.15 0.00 -509.37 15229.71 -0.03 16,193.53 55,060.90 0.29
64,106 335,510 0.19 16785.64 92611.19 0.18 -1784.22 18064.73 -0.10 6,876.58 67,508.48 0.10
84,845 419,400 0.20 812.91 96579.16 0.01 -1169.12 17808.30 -0.07 -1,174.93 72,668.68 -0.02
102,847 509,933 0.20 -767.80 91790.57 -0.01 -612.76 15779.54 -0.04 11,800.17 78,263.72 0.15
117,850 593,701 0.20 5515.62 76444.56 0.07 -98.25 11102.97 -0.01 12,062.14 78,534.86 0.15
65,932 629,318 0.10 -2764.50 74344.67 -0.04 -910.49 10729.27 -0.08 -3,278.81 98,666.11 -0.03

259
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
csh frm total ratio csh frm total asset ratio csh frm oper. total asset ratio csh frm total ratio
oper. asset oper. oper. asset
10474.04 62631.87 0.17 6400.18 50441.24 0.13 338.91 2687.23 0.13 1515.85 19363.60 0.08
4195.06 80055.02 0.05 1505.56 54190.45 0.03 202.40 2857.66 0.07 5143.22 24777.39 0.21
33.34 919.45 0.04 3653.59 54260.93 0.07 440.85 3114.47 0.14 -955.88 32158.43 -0.03
74.73 914.01 0.08 2258.44 52184.77 0.04 418.12 3119.27 0.13 4991.10 33583.64 0.15
90.93 944.60 0.10 2463.46 49734.42 0.05 523.79 3564.70 0.15 13101.07 47001.01 0.28
85.47 978.30 0.09 -2562.67 49943.17 -0.05 84.84 4604.20 0.02 2598.06 47213.73 0.06
129.42 1133.66 0.11 2702.98 56676.00 0.05 941.09 4952.18 0.19 8518.08 53340.80 0.16
167.95 1259.12 0.13 1381.47 58536.60 0.02 723.93 5904.67 0.12 8950.00 61864.40 0.14
-59.50 1793.82 -0.03 4133.94 59212.30 0.07 1297.32 7156.24 0.18 3336.93 78577.96 0.04
174.34 1732.69 0.10 6292.63 60909.63 0.10 1097.78 8369.36 0.13 4318.19 74825.24 0.06

CASH RETURN ON INVESTED CAPITAL

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio
30700.12 233692.60 0.13 764.28 2925.60 0.26 5734.90 14832.60 0.39 -946.30 5735.16 -0.16
-32634.64 270129.90 -0.12 1278.44 1208.44 1.06 9170.80 6145.20 1.49 275.50 9171.86 0.03
5954.34 266116.91 0.02 1323.71 1143.38 1.16 25144.70 3868.50 6.50 373.20 25145.86 0.01
-43602.07 377089.23 -0.12 3111.55 1120.45 2.78 8566.10 3606.40 2.38 700.30 8568.88 0.08
44628.91 414998.12 0.11 2014.52 1120.45 1.80 14042.20 3471.10 4.05 1099.70 14044.00 0.08
187824.58 287592.41 0.65 -52.90 1120.45 -0.05 17329.70 4011.40 4.32 9749.70 17329.65 0.56
206319.87 226896.35 0.91 86.04 1120.45 0.08 36265.60 4518.50 8.03 4570.30 36265.68 0.13
67794.83 162954.77 0.42 5805.80 1120.45 5.18 -3491.10 2893.70 - 12.10 -3485.92 0.00
1.21
208628.41 80839.80 2.58 3189.57 1097.16 2.91 23427.70 2893.70 8.10 3569.30 23430.61 0.15
194884.00 69195.00 2.82 678.46 1097.16 0.62 22454.50 2893.70 7.76 9355.00 22455.12 0.42

260
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. Ratio
-778.70 -945.91 0.82 3,909.15 -778.86 -5.02 32774.30 3909.98 8.38 5597.24 25128.20 0.22
1188.70 276.99 4.29 -8483.09 1,188.73 -7.14 9658.00 -8478.80 - -2552.47 21183.81 -0.12
1.14
-772.90 379.70 -2.04 67529.92 -772.89 -87.37 24525.70 67527.88 0.36 -14.40 21382.60 0.00
-772.90 702.68 -1.10 -21815.16 -772.82 28.23 11574.90 -21816.26 - 4053.24 16417.87 0.25
0.53
2659.10 1103.75 2.41 2109.81 2,659.18 0.79 13440.90 2112.22 6.36 5669.70 11125.48 0.51
-147.50 9754.02 -0.02 12974.44 -146.94 -88.30 22620.80 12974.42 1.74 3385.78 12048.98 0.28
1631.40 4578.33 0.36 5323.65 1,631.53 3.26 16424.50 5324.01 3.08 888.68 11406.67 0.08
1611.20 10.89 147.90 -15015.00 1,611.20 -9.32 20840.80 -14867.10 - 662.43 10857.59 0.06
1.40
938.20 3577.40 0.26 17589.00 938.35 18.74 20656.40 17589.26 1.17 4575.82 10441.44 0.44
-2543.10 9362.76 -0.27 -29355.00 -2,542.68 11.54 23002.80 -29355.27 - -1170.01 10441.44 -0.11
0.78

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. Ratio
131.00 1142.86 0.11 4232.47 16240.55 0.26 991.05 3163.10 0.31 235.28 4944.93 0.05
597.73 1142.86 0.52 -1374.05 16387.79 -0.08 -755.24 2698.91 -0.28 -6849.67 12578.84 -0.54
1563.00 1142.86 1.37 -707.33 17508.07 -0.04 849.62 3468.74 0.24 2012.55 10197.49 0.20
2561.29 1142.86 2.24 -1612.19 12613.15 -0.13 1249.76 3522.23 0.35 -1221.36 11686.53 -0.10
907.05 1142.86 0.79 2538.78 12110.39 0.21 1320.56 4040.32 0.33 4873.72 10061.62 0.48
4357.05 1142.86 3.81 2290.39 15354.41 0.15 796.40 2916.08 0.27 1058.75 11199.06 0.09
7333.27 1142.86 6.42 6563.56 12058.64 0.54 1932.57 2139.87 0.90 -6317.46 18296.20 -0.35
2309.30 1142.86 2.02 473.53 10613.32 0.04 771.79 3034.24 0.25 2486.39 17360.55 0.14
4080.22 1142.86 3.57 239.85 8217.28 0.03 1916.66 3459.34 0.55 7585.28 11277.34 0.67
4524.80 1142.86 3.96 41.90 8136.54 0.01 2375.16 3076.12 0.77 4625.79 6510.71 0.71

261
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. Ratio
-18959.00 9659.00 -1.96 -3931.65 23171.74 -0.17 -2275.97 10650.81 -0.21 10199.71 9,911.25 1.03
31237.00 4538.00 6.88 -5245.22 32769.89 -0.16 -2997.79 14433.07 -0.21 2402.21 9,947.88 0.24
-5359.00 12228.00 -0.44 -1060.54 29651.85 -0.04 1463.82 9818.60 0.15 4730.56 11,447.88 0.41
8101.00 15402.00 0.53 90.00 43002.14 0.00 8648.35 6763.63 1.28 -5373.24 17,657.21 -0.30
107.00 18361.00 0.01 2037.22 28761.24 0.07 -3603.33 10861.42 -0.33 18375.29 1,447.88 12.69
19107.00 3312.00 5.77 16387.96 22471.23 0.73 -861.33 11787.33 -0.07 -3444.19 3,677.31 -0.94
12571.00 2284.00 5.50 796.63 34319.79 0.02 -624.69 11213.42 -0.06 -2486.14 6,947.88 -0.36
11032.00 6346.00 1.74 -588.66 32477.60 -0.02 -505.76 11203.14 -0.05 3053.79 5,311.75 0.57
35029.00 2618.00 13.38 7697.98 22320.26 0.34 561.39 9527.39 0.06 3145.82 5,459.94 0.58
30549.00 3006.00 10.16 652.51 18032.63 0.04 -929.08 9927.39 -0.09 -13104.82 20,296.81 -0.65

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. ratio free c.f. avg I.cap. Ratio
6375.93 30766.20 0.21 -5448.11 17165.14 -0.32 53.66 1027.04 0.05 -171.77 1944.16 -0.09
-3554.93 37944.76 -0.09 -1016.32 16536.46 -0.06 234.20 832.93 0.28 1489.28 1855.61 0.80
25.23 337.20 0.07 3798.31 11646.38 0.33 60.00 762.97 0.08 -678.61 2462.95 -0.28
54.05 396.98 0.14 3249.94 14906.76 0.22 319.63 593.37 0.54 3900.47 863.95 4.51
84.31 309.53 0.27 5016.37 15159.31 0.33 263.95 523.39 0.50 43.98 863.95 0.05
44.42 337.01 0.13 -1960.93 20724.75 -0.09 -408.43 966.25 -0.42 1333.77 863.95 1.54
127.87 289.59 0.44 -561.24 14933.86 -0.04 332.93 805.97 0.41 4240.74 863.95 4.91
106.20 281.98 0.38 -1356.51 19740.56 -0.07 -24.19 1132.65 -0.02 1199.11 863.95 1.39
-247.12 597.60 -0.41 3423.67 16935.00 0.20 165.96 1084.48 0.15 -262.65 863.95 -0.30
76.73 688.93 0.11 2472.08 18216.75 0.14 95.50 1425.45 0.07 5421.08 863.95 6.27

262
FREE CASH FLOW TO OPERATING CASH FLOW

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio
30700.12 109016.82 0.28 764.28 958.02 0.80 5734.90 27371.10 0.21 -946.30 437.50 -2.16
-32634.64 59138.27 -0.55 1278.44 1672.56 0.76 9170.80 20372.20 0.45 275.50 843.40 0.33
5954.34 111706.37 0.05 1323.71 1879.37 0.70 25144.70 29599.10 0.85 373.20 1902.40 0.20
-43602.07 72829.96 -0.60 3111.55 4066.00 0.77 8566.10 21343.70 0.40 700.30 3688.10 0.19
44628.91 55643.01 0.80 2014.52 3070.86 0.66 14042.20 35457.10 0.40 1099.70 6859.60 0.16
187824.58 176655.19 1.06 -52.90 3578.90 -0.01 17329.70 21473.20 0.81 9749.70 19833.60 0.49
206319.87 167561.23 1.23 86.04 1086.48 0.08 36265.60 36454.10 0.99 4570.30 14743.30 0.31
67794.83 215477.12 0.31 5805.80 7229.82 0.80 -3491.10 33392.00 - 12.10 17618.60 0.00
0.10
208628.41 541835.18 0.39 3189.57 2610.73 1.22 23427.70 42607.90 0.55 3569.30 25153.90 0.14
194884.00 -36265.00 -5.37 678.46 3454.76 0.20 22454.50 24895.30 0.90 9355.00 16107.20 0.58

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio
-778.70 852.20 -0.91 3909.15 5867.24 0.67 32774.30 26866.40 1.22 5597.24 1068.39 5.24
1188.70 1871.40 0.64 -8483.09 7286.98 -1.16 9658.00 22881.10 0.42 -2552.47 -8822.59 0.29
-772.90 553.90 -1.40 67529.92 -13921.61 -4.85 24525.70 23597.80 1.04 -14.40 -10003.21 0.00
-772.90 553.90 -1.40 -21815.16 8325.65 -2.62 11574.90 18904.30 0.61 4053.24 -10906.14 -
0.37
2659.10 3283.00 0.81 2109.81 12066.77 0.17 13440.90 29634.10 0.45 5669.70 -2406.25 -
2.36
-147.50 98.00 -1.51 12974.44 22596.98 0.57 22620.80 22500.00 1.01 3385.78 3315.41 1.02
1631.40 2291.40 0.71 5323.65 26324.99 0.20 16424.50 39137.90 0.42 888.68 852.40 1.04
1611.20 3007.90 0.54 -15015.00 6038.00 -2.49 20840.80 40280.20 0.52 662.43 655.10 1.01
938.20 4722.00 0.20 17589.00 25648.00 0.69 20656.40 39808.60 0.52 4575.82 -3345.95 -
1.37
-2543.10 -2406.80 1.06 -29355.00 31203.00 -0.94 23002.80 9790.50 2.35 -1170.01 -1397.41 0.84

263
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio
131.00 -1139.92 -0.11 4232.47 -2018.44 -2.10 991.05 2336.49 0.42 235.28 -343.01 -0.69
597.73 -1224.34 -0.49 -1374.05 -1322.28 1.04 -755.24 2979.75 -0.25 -6849.67 1747.47 -3.92
1563.00 -4534.95 -0.34 -707.33 -1502.02 0.47 849.62 2734.95 0.31 2012.55 1603.38 1.26
2561.29 -754.66 -3.39 -1612.19 -790.93 2.04 1249.76 4145.71 0.30 -1221.36 1594.90 -0.77
907.05 -569.24 -1.59 2538.78 1314.20 1.93 1320.56 3727.64 0.35 4873.72 -2672.68 -1.82
4357.05 -1011.13 -4.31 2290.39 -1214.54 -1.89 796.40 3219.49 0.25 1058.75 -1550.79 -0.68
7333.27 -796.81 -9.20 6563.56 -1479.34 -4.44 1932.57 5470.50 0.35 -6317.46 -142.60 44.30
2309.30 -1200.60 -1.92 473.53 310.35 1.53 771.79 3971.18 0.19 2486.39 1248.58 1.99
4080.22 67.44 60.50 239.85 764.63 0.31 1916.66 7027.08 0.27 7585.28 1512.14 5.02
4524.80 65.23 69.37 41.90 89.31 0.47 2375.16 4923.87 0.48 4625.79 4856.77 0.95

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio
-18959.00 30318.00 -0.63 -3931.65 3999.58 -0.98 -2275.97 -2364.79 0.96 10199.71 10829.57 0.94
31237.00 30503.00 1.02 -5245.22 2902.83 -1.81 -2997.79 -2967.01 1.01 2402.21 3469.15 0.69
-5359.00 25599.00 -0.21 -1060.54 7984.49 -0.13 1463.82 1338.28 1.09 4730.56 7448.70 0.64
8101.00 43842.00 0.18 90.00 -4816.99 -0.02 8648.35 8385.53 1.03 -5373.24 -2540.31 2.12
107.00 49036.00 0.00 2037.22 -128.16 -15.90 -3603.33 -509.37 7.07 18375.29 16193.53 1.13
19107.00 64106.00 0.30 16387.96 16785.64 0.98 -861.33 -1784.22 0.48 -3444.19 6876.58 -0.50
12571.00 84845.00 0.15 796.63 812.91 0.98 -624.69 -1169.12 0.53 -2486.14 -1174.93 2.12
11032.00 102847.00 0.11 -588.66 -767.80 0.77 -505.76 -612.76 0.83 3053.79 11800.17 0.26
35029.00 117850.00 0.30 7697.98 5515.62 1.40 561.39 -98.25 -5.71 3145.82 12062.14 0.26
30549.00 65932.00 0.46 652.51 -2764.50 -0.24 -929.08 -910.49 1.02 -13104.82 -3278.81 4.00

264
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. ratio free c.f. oper. C.f. Ratio
6375.93 10474.04 0.61 -5448.11 6400.18 -0.85 53.66 338.91 0.16 -171.77 1515.85 -0.11
-3554.93 4195.06 -0.85 -1016.32 1505.56 -0.68 234.20 202.40 1.16 1489.28 5143.22 0.29
25.23 33.34 0.76 3798.31 3653.59 1.04 60.00 440.85 0.14 -678.61 -955.88 0.71
54.05 74.73 0.72 3249.94 2258.44 1.44 319.63 418.12 0.76 3900.47 4991.10 0.78
84.31 90.93 0.93 5016.37 2463.46 2.04 263.95 523.79 0.50 43.98 13101.07 0.00
44.42 85.47 0.52 -1960.93 -2562.67 0.77 -408.43 84.84 -4.81 1333.77 2598.06 0.51
127.87 129.42 0.99 -561.24 2702.98 -0.21 332.93 941.09 0.35 4240.74 8518.08 0.50
106.20 167.95 0.63 -1356.51 1381.47 -0.98 -24.19 723.93 -0.03 1199.11 8950.00 0.13
-247.12 -59.50 4.15 3423.67 4133.94 0.83 165.96 1297.32 0.13 -262.65 3336.93 -0.08
76.73 174.34 0.44 2472.08 6292.63 0.39 95.50 1097.78 0.09 5421.08 4318.19 1.26

OPERATING INDEX RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio
109016.82 54477.48 2.00 958.02 715.02 1.34 27371.10 24111.30 1.14 437.50 866.10 0.51
59138.27 80179.93 0.74 1672.56 1406.27 1.19 20372.20 43507.50 0.47 843.40 1245.50 0.68
111706.37 68997.66 1.62 1879.37 2324.49 0.81 29599.10 40261.70 0.74 1902.40 1738.00 1.09
72829.96 47070.67 1.55 4066.00 3722.01 1.09 21343.70 42662.30 0.50 3688.10 3631.50 1.02
55643.01 -9121.89 -6.10 3070.86 4274.85 0.72 35457.10 46320.50 0.77 6859.60 7980.30 0.86
176655.19 44219.67 3.99 3578.90 5925.39 0.60 21473.20 40847.90 0.53 19833.60 17695.80 1.12
167561.23 116920.18 1.43 1086.48 7152.59 0.15 36454.10 53851.80 0.68 14743.30 18530.10 0.80
215477.12 133008.62 1.62 7229.82 5651.55 1.28 33392.00 53356.30 0.63 17618.60 22769.90 0.77
541835.18 223071.54 2.43 2610.73 6943.15 0.38 42607.90 57825.70 0.74 25153.90 26482.70 0.95
-36265.00 249680.00 -0.15 3454.76 8195.33 0.42 24895.30 67031.60 0.37 16107.20 31329.80 0.51

265
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio
852.20 1880.20 0.45 5867.24 4288.48 1.37 26866.40 22318.30 1.20 1068.39 -3326.37 -0.32
1871.40 1006.20 1.86 7286.98 8213.21 0.89 22881.10 24047.60 0.95 -8822.59 -376.12 23.46
553.90 879.50 0.63 -13921.61 101129.91 -0.14 23597.80 28647.10 0.82 -10003.21 -3340.39 2.99
553.90 879.50 0.63 8325.65 1913.17 4.35 18904.30 25292.00 0.75 -10906.14 -7998.09 1.36
3283.00 2724.00 1.21 12066.77 6262.70 1.93 29634.10 28672.50 1.03 -2406.25 -70.84 33.97
98.00 682.50 0.14 22596.98 12494.31 1.81 22500.00 33288.20 0.68 3315.41 -4190.23 -0.79
2291.40 918.70 2.49 26324.99 24928.44 1.06 39137.90 43945.80 0.89 852.40 -3204.47 -0.27
3007.90 2767.50 1.09 6038.00 23500.00 0.26 40280.20 46584.60 0.86 655.10 -1913.85 -0.34
4722.00 5088.20 0.93 25648.00 20023.00 1.28 39808.60 52441.60 0.76 -3345.95 6227.06 -0.54
-2406.80 7212.00 -0.33 31203.00 19381.00 1.61 9790.50 50107.30 0.20 -1397.41 2660.16 -0.53

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio
-1139.92 640.06 -1.78 -2018.44 234.61 -8.60 2336.49 2846.75 0.82 -343.01 2306.56 -0.15
-1224.34 2112.88 -0.58 -1322.28 -1093.29 1.21 2979.75 3519.61 0.85 1747.47 812.63 2.15
-4534.95 -649.12 6.99 -1502.02 -693.26 2.17 2734.95 3605.89 0.76 1603.38 1659.17 0.97
-754.66 4884.13 -0.15 -790.93 -1356.82 0.58 4145.71 4447.09 0.93 1594.90 -1089.37 -1.46
-569.24 4759.76 -0.12 1314.20 -5900.19 -0.22 3727.64 4369.43 0.85 -2672.68 4735.19 -0.56
-1011.13 5475.78 -0.18 -1214.54 1022.47 -1.19 3219.49 4168.89 0.77 -1550.79 1172.54 -1.32
-796.81 10099.88 -0.08 -1479.34 -119.46 12.38 5470.50 4284.46 1.28 -142.60 440.31 -0.32
-1200.60 1369.88 -0.88 310.35 -1417.30 -0.22 3971.18 5187.50 0.77 1248.58 -1675.52 -0.75
67.44 6134.34 0.01 764.63 -777.33 -0.98 7027.08 6102.37 1.15 1512.14 196.73 7.69
65.23 7439.86 0.01 89.31 -816.36 -0.11 4923.87 6325.01 0.78 4856.77 4518.76 1.07

266
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio
30318.00 35925.00 0.84 3999.58 2080.53 1.92 -2364.79 -2800.54 0.84 10829.57 3043.13 3.56
30503.00 31088.00 0.98 2902.83 2365.79 1.23 -2967.01 -1711.14 1.73 3469.15 5137.98 0.68
25599.00 21462.00 1.19 7984.49 1418.66 5.63 1338.28 -1993.99 -0.67 7448.70 6007.55 1.24
43842.00 29910.00 1.47 -4816.99 14162.96 -0.34 8385.53 -600.06 -13.97 -2540.31 4849.15 -0.52
49036.00 36585.00 1.34 -128.16 -534.47 0.24 -509.37 1359.64 -0.37 16193.53 1771.43 9.14
64106.00 48682.00 1.32 16785.64 -7321.02 -2.29 -1784.22 1108.86 -1.61 6876.58 4874.46 1.41
84845.00 74437.00 1.14 812.91 -2518.47 -0.32 -1169.12 577.26 -2.03 -1174.93 110426.04 -0.01
102847.00 99413.00 1.03 -767.80 -10371.21 0.07 -612.76 -1001.68 0.61 11800.17 128848.23 0.09
117850.00 110034.00 1.07 5515.62 -12445.85 -0.44 -98.25 -1862.22 0.05 12062.14 8414.55 1.43
65932.00 104656.00 0.63 -2764.50 -19559.98 0.14 -910.49 -463.26 1.97 -3278.81 945.80 -3.47

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio oper. C.f. P.B.T. ratio
10474.04 1366.83 7.66 6400.18 2829.54 2.26 338.91 76.17 4.45 1515.85 6180.11 0.25
4195.06 4525.84 0.93 1505.56 2196.52 0.69 202.40 248.09 0.82 5143.22 7104.35 0.72
33.34 80.92 0.41 3653.59 1341.03 2.72 440.85 316.46 1.39 -955.88 7335.93 -0.13
74.73 32.30 2.31 2258.44 174.93 12.91 418.12 163.58 2.56 4991.10 6962.22 0.72
90.93 60.79 1.50 2463.46 -1025.80 -2.40 523.79 352.54 1.49 13101.07 12195.85 1.07
85.47 84.41 1.01 -2562.67 -3974.72 0.64 84.84 456.16 0.19 2598.06 10055.46 0.26
129.42 162.52 0.80 2702.98 -67.10 -40.28 941.09 628.94 1.50 8518.08 11002.95 0.77
167.95 119.67 1.40 1381.47 -2420.77 -0.57 723.93 698.68 1.04 8950.00 9954.78 0.90
-59.50 0.84 -70.83 4133.94 -946.92 -4.37 1297.32 878.64 1.48 3336.93 15223.14 0.22
174.34 130.48 1.34 6292.63 2398.93 2.62 1097.78 960.96 1.14 4318.19 7153.27 0.60

267
CASH GENERATING POWER RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. Ratio oper. C.f. net c.f. Ratio
109016.82 43031.54 2.53 958.02 -21.59 -44.37 27371.10 -354.60 -77.19 437.50 -1029.00 -0.43
59138.27 -33998.26 -1.74 1672.56 119.17 14.04 20372.20 550.80 36.99 843.40 -23.60 -35.74
111706.37 -15132.91 -7.38 1879.37 846.99 2.22 29599.10 9500.90 3.12 1902.40 5.20 365.85
72829.96 -1904.07 -38.25 4066.00 2669.88 1.52 21343.70 -6224.70 -3.43 3688.10 152.10 24.25
55643.01 -234.73 -237.05 3070.86 707.62 4.34 35457.10 -640.00 -55.40 6859.60 243.40 28.18
176655.19 69907.79 2.53 3578.90 -1160.45 -3.08 21473.20 887.90 24.18 19833.60 236.30 83.93
167561.23 83001.13 2.02 1086.48 -1300.57 -0.84 36454.10 2424.80 15.03 14743.30 -84.90 -173.65
215477.12 -69390.30 -3.11 7229.82 4419.17 1.64 33392.00 -5392.00 -6.19 17618.60 41.60 423.52
541835.18 12494.00 43.37 2610.73 -2431.08 -1.07 42607.90 4575.10 9.31 25153.90 764.90 32.89
-36265.00 33298.00 -1.09 3454.76 -701.45 -4.93 24895.30 1714.00 14.52 16107.20 6012.50 2.68

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. Ratio
852.20 -84.60 -10.07 5867.24 911.76 6.44 26866.40 497.00 54.06 1068.39 2113.27 0.51
1871.40 1112.30 1.68 7286.98 -1099.13 -6.63 22881.10 -233.80 -97.87 -8822.59 -1163.84 7.58
553.90 -999.60 -0.55 -13921.61 44738.86 -0.31 23597.80 -55.90 -422.14 - -839.99 11.91
10003.21
553.90 -999.60 -0.55 8325.65 -23695.49 -0.35 18904.30 1012.20 18.68 - -1284.19 8.49
10906.14
3283.00 302.00 10.87 12066.77 -908.33 -13.28 29634.10 -708.40 -41.83 -2406.25 -335.87 7.16
98.00 -254.90 -0.38 22596.98 8518.36 2.65 22500.00 315.60 71.29 3315.41 -65.78 -50.40
2291.40 -206.70 -11.09 26324.99 1708.49 15.41 39137.90 -415.00 -94.31 852.40 -8.05 -105.89
3007.90 232.50 12.94 6038.00 3002.00 2.01 40280.20 -115.50 -348.75 655.10 0.38 1723.95
4722.00 942.60 5.01 25648.00 -4699.00 -5.46 39808.60 189.80 209.74 -3345.95 1651.55 -2.03
-2406.80 -626.20 3.84 31203.00 -3729.00 -8.37 9790.50 63.00 155.40 -1397.41 -1386.46 1.01

268
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio
-1139.92 -591.69 1.93 -2018.44 -485.16 4.16 2336.49 207.18 11.28 -343.01 82.49 -4.16
-1224.34 -121.49 10.08 -1322.28 -1376.57 0.96 2979.75 -1138.96 -2.62 1747.47 36.36 48.06
-4534.95 389.65 -11.64 -1502.02 -4.97 302.22 2734.95 543.47 5.03 1603.38 -117.39 -13.66
-754.66 2424.02 -0.31 -790.93 -2.98 265.41 4145.71 27.87 148.75 1594.90 -2.61 -611.07
-569.24 -1711.70 0.33 1314.20 27.69 47.46 3727.64 496.63 7.51 -2672.68 -134.73 19.84
-1011.13 1088.69 -0.93 -1214.54 399.57 -3.04 3219.49 -788.42 -4.08 -1550.79 838.41 -1.85
-796.81 -628.00 1.27 -1479.34 -408.16 3.62 5470.50 -74.63 -73.30 -142.60 -832.52 0.17
-1200.60 2143.27 -0.56 310.35 108.29 2.87 3971.18 -283.76 -13.99 1248.58 -55.05 -22.68
67.44 23.98 2.81 764.63 -109.84 -6.96 7027.08 883.35 7.96 1512.14 -8.75 -172.82
65.23 -5.40 -12.08 89.31 -15.25 -5.86 4923.87 819.94 6.01 4856.77 0.70 6938.24

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio
30318.00 - -1.-65 3999.58 836.97 4.78 -2364.79 66.55 -35.53 10829.57 2423.42 4.47
18408.00
30503.00 24103.00 1.27 2902.83 880.53 3.30 -2967.01 -269.28 11.02 3469.15 850.70 4.08
25599.00 806.00 31.76 7984.49 -67.86 -117.66 1338.28 1608.75 0.83 7448.70 3818.09 1.95
43842.00 -1562.00 -28.07 -4816.99 301.77 -15.96 8385.53 85.53 98.04 -2540.31 -2367.85 1.07
49036.00 -552.00 -88.83 -128.16 -363.52 0.35 -509.37 466.89 -1.09 16193.53 221.98 72.95
64106.00 -514.00 -124.72 16785.64 -2.23 -7527.19 -1784.22 -40.31 44.26 6876.58 -2304.73 -2.98
84845.00 207.00 409.88 812.91 8.44 96.32 -1169.12 -933.72 1.25 -1174.93 -777.05 1.51
102847.00 -261.00 -394.05 -767.80 -72.28 10.62 -612.76 -571.90 1.07 11800.17 -228.36 -51.67
117850.00 569.00 207.12 5515.62 45.92 120.11 -98.25 -773.53 0.13 12062.14 -228.36 -52.82
65932.00 1071.00 61.56 -2764.50 -33.87 81.62 -910.49 -929.08 0.98 -3278.81 1457.06 -2.25

269
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
oper. C.f. net c.f. Ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio oper. C.f. net c.f. ratio
10474.04 -1953.59 -5.36 6400.18 86.23 74.22 338.91 141.66 2.39 1515.85 -375.37 -4.04
4195.06 -7026.19 -0.60 1505.56 632.10 2.38 202.40 -174.09 -1.16 5143.22 578.09 8.90
33.34 0.57 58.49 3653.59 -437.28 -8.36 440.85 -134.57 -3.28 -955.88 -65.79 14.53
74.73 -76.00 -0.98 2258.44 -795.75 -2.84 418.12 173.38 2.41 4991.10 1274.08 3.92
90.93 88.33 1.03 2463.46 -17.44 -141.25 523.79 65.57 7.99 13101.07 -1039.63 -12.60
85.47 -17.99 -4.75 -2562.67 670.60 -3.82 84.84 -77.61 -1.09 2598.06 -423.96 -6.13
129.42 74.78 1.73 2702.98 1066.47 2.53 941.09 26.88 35.01 8518.08 864.99 9.85
167.95 -0.97 -173.14 1381.47 427.07 3.23 723.93 -96.89 -7.47 8950.00 901.51 9.93
-59.50 -122.78 0.48 4133.94 318.04 13.00 1297.32 91.22 14.22 3336.93 -1933.10 -1.73
174.34 64.01 2.72 6292.63 -57.62 -109.21 1097.78 176.63 6.22 4318.19 23.30 185.33

EXTERNAL FINANCING INDEX RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio
12331.42 109016.82 0.11 -785.87 958.02 -0.82 -6089.50 27371.10 -0.22 -82.70 437.50 -0.19
-1363.62 59138.27 -0.02 -1159.27 1672.56 -0.69 -8620.00 20372.20 -0.42 -299.10 843.40 -0.35
-21087.25 111706.37 -0.19 -476.73 1879.37 -0.25 -15643.80 29599.10 -0.53 -368.00 1902.40 -0.19
41698.00 72829.96 0.57 -441.66 4066.00 -0.11 -14790.80 21343.70 -0.69 -548.20 3688.10 -0.15
-44863.64 55643.01 -0.81 -1306.90 3070.86 -0.43 -14682.20 35457.10 -0.41 -856.30 6859.60 -0.12
-117916.79 176655.19 -0.67 -1107.55 3578.90 -0.31 -16441.80 21473.20 -0.77 -4326.90 19833.60 -0.22
-123318.74 167561.23 -0.74 -1386.62 1086.48 -1.28 -33840.80 36454.10 -0.93 -4655.20 14743.30 -0.32
-137185.13 215477.12 -0.64 -1386.63 7229.82 -0.19 -1900.90 33392.00 -0.06 29.50 17618.60 0.00
-196134.41 541835.18 -0.36 -1122.52 2610.73 -0.43 -18852.60 42607.90 -0.44 -2804.40 25153.90 -0.11
-161616.00 -36265.00 4.46 -1388.91 3454.76 -0.40 -20740.50 24895.30 -0.83 -3342.50 16107.20 -0.21

270
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio
694.10 852.20 0.81 -2997.39 5867.24 -0.51 -21093.10 26866.40 -0.79 -3483.97 1068.39 -3.26
-76.40 1871.40 -0.04 7383.96 7286.98 1.01 -9891.80 22881.10 -0.43 1388.63 -8822.59 -0.16
-246.70 553.90 -0.45 -22791.05 -13921.61 1.64 -24581.60 23597.80 -1.04 -825.59 -10003.21 0.08
-246.70 553.90 -0.45 -1610.33 8325.65 -0.19 -10562.70 18904.30 -0.56 -5337.45 -10906.14 0.49
-2357.10 3283.00 -0.72 -3018.14 12066.77 -0.25 -14149.30 29634.10 -0.48 -6005.57 -2406.25 2.50
-107.40 98.00 -1.10 -4456.08 22596.98 -0.20 -22305.20 22500.00 -0.99 -3451.56 3315.41 -1.04
-1838.10 2291.40 -0.80 -3615.15 26324.99 -0.14 -16839.50 39137.90 -0.43 -896.73 852.40 -1.05
-1378.70 3007.90 -0.46 18017.00 6038.00 2.98 -20956.30 40280.20 -0.52 -622.05 655.10 -0.95
1916.90 4722.00 0.41 -22288.00 25648.00 -0.87 -20466.60 39808.60 -0.51 -2924.27 -3345.95 0.87
4.40 - 0.00 25626.00 31203.00 0.82 -22939.80 9790.50 -2.34 -216.45 -1397.41 0.15
2406.80

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio
-722.69 -1139.92 0.63 -4717.63 -2018.44 2.34 -783.87 2336.49 -0.34 -152.80 -343.01 0.45
-719.22 -1224.34 0.59 -2.52 -1322.28 0.00 -383.72 2979.75 -0.13 6886.03 1747.47 3.94
-1173.35 -4534.95 0.26 702.36 -1502.02 -0.47 -306.15 2734.95 -0.11 -2129.94 1603.38 -1.33
-137.27 -754.66 0.18 1609.21 -790.93 -2.03 -1221.89 4145.71 -0.29 1218.75 1594.90 0.76
-2618.75 -569.24 4.60 -2511.09 1314.20 -1.91 -823.93 3727.64 -0.22 -5008.45 -2672.68 1.87
-3268.36 -1011.13 3.23 -1890.81 -1214.54 1.56 -1584.82 3219.49 -0.49 -220.32 -1550.79 0.14
-7961.27 -796.81 9.99 -6971.72 -1479.34 4.71 -2007.20 5470.50 -0.37 5484.94 -142.60 -38.46
-166.03 -1200.60 0.14 -365.23 310.35 -1.18 -1055.55 3971.18 -0.27 -2541.44 1248.58 -2.04
-4056.24 67.44 -60.15 -349.70 764.63 -0.46 -1033.31 7027.08 -0.15 -7594.03 1512.14 -5.02
-4530.20 65.23 -69.45 -57.15 89.31 -0.64 -1555.22 4923.87 -0.32 -4625.09 4856.77 -0.95

271
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio
551.00 30318.00 0.02 4768.61 3999.58 1.19 2342.52 -2364.79 -0.99 -7776.29 10829.57 -0.72
-7134.00 30503.00 -0.23 6125.75 2902.83 2.11 2728.51 -2967.01 -0.92 -1551.51 3469.15 -0.45
6165.00 25599.00 0.24 992.68 7984.49 0.12 144.93 1338.28 0.11 -912.47 7448.70 -0.12
-9663.00 43842.00 -0.22 211.77 -4816.99 -0.04 -8562.82 8385.53 -1.02 3005.39 -2540.31 -1.18
-659.00 49036.00 -0.01 -2400.74 -128.16 18.73 4070.22 -509.37 -7.99 -18153.31 16193.53 -1.12
-19621.00 64106.00 -0.31 -16390.19 16785.64 -0.98 821.02 -1784.22 -0.46 1139.46 6876.58 0.17
-12364.00 84845.00 -0.15 -788.19 812.91 -0.97 -309.03 -1169.12 0.26 1709.09 -1174.93 -1.45
-11293.00 102847.00 -0.11 516.38 -767.80 -0.67 -66.14 -612.76 0.11 -3282.15 11800.17 -0.28
-34460.00 117850.00 -0.29 -7652.06 5515.62 -1.39 -1334.92 -98.25 13.59 -3374.18 12062.14 -0.28
-29478.00 65932.00 -0.45 -686.38 -2764.50 0.25 0.00 -910.49 0.00 14561.88 -3278.81 -4.44

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

fin c.f. oper c.f. Ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio fin c.f. oper c.f. ratio
-8329.52 10474.04 -0.80 5534.34 6400.18 0.86 88.00 338.91 0.26 -203.60 1515.85 -0.13
-3471.26 4195.06 -0.83 1648.42 1505.56 1.09 -408.29 202.40 -2.02 -911.19 5143.22 -0.18
-24.66 33.34 -0.74 -4235.59 3653.59 -1.16 -194.57 440.85 -0.44 612.82 -955.88 -0.64
-130.05 74.73 -1.74 -4045.69 2258.44 -1.79 -146.25 418.12 -0.35 -2626.39 4991.10 -0.53
4.02 90.93 0.04 -5033.81 2463.46 -2.04 -198.38 523.79 -0.38 -1086.61 13101.07 -0.08
-62.41 85.47 -0.73 2631.53 -2562.67 -1.03 330.82 84.84 3.90 -1727.74 2598.06 -0.67
-53.09 129.42 -0.41 -640.11 2702.98 -0.24 -306.05 941.09 -0.33 -3375.75 8518.08 -0.40
-107.17 167.95 -0.64 -237.30 1381.47 -0.17 -72.70 723.93 -0.10 -297.61 8950.00 -0.03
124.33 -59.50 -2.09 -3105.63 4133.94 -0.75 -74.74 1297.32 -0.06 -1670.45 3336.93 -0.50
-10.88 174.34 -0.06 -2529.70 6292.63 -0.40 81.13 1097.78 0.07 -5397.78 4318.19 -1.25

272
PRICE TO CASH FLOW RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

share price o.c.f.per ratio share price o.c.f.per ratio share o.c.f.per ratio share o.c.f.per ratio
share share price share price share
1.00 8.19 0.12 10.00 16.37 0.61 10.00 189.18 0.05 10.00 1.62 6.16
1.00 4.44 0.22 10.00 28.58 0.35 10.00 70.40 0.14 10.00 3.12 3.20
1.00 4.20 0.24 10.00 25.70 0.39 10.00 102.29 0.10 10.00 7.05 1.42
1.00 2.74 0.37 10.00 35.02 0.29 10.00 73.76 0.14 10.00 13.64 0.73
1.00 2.09 0.48 10.00 26.45 0.38 10.00 122.53 0.08 10.00 25.31 0.40
1.00 6.21 0.16 5.00 15.41 0.32 10.00 74.21 0.13 10.00 73.03 0.14
1.00 5.89 0.17 5.00 4.68 1.07 10.00 125.98 0.08 10.00 54.18 0.18
1.00 7.57 0.13 5.00 31.13 0.16 10.00 115.40 0.09 10.00 64.63 0.15
1.00 18.51 0.05 5.00 11.24 0.44 10.00 147.24 0.07 10.00 92.21 0.11
1.00 -1.24 - 5.00 14.88 0.34 10.00 86.03 0.12 10.00 59.00 0.17
0.81

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

share price o.c.f.per Ratio share price o.c.f.per ratio share o.c.f.per ratio share o.c.f.per ratio
share share price share price share
10.00 0.81 12.39 10.00 44.40 0.23 2.00 134.53 0.01 10.00 0.66 15.12
10.00 1.77 5.64 10.00 55.15 0.18 2.00 114.58 0.02 5.00 -5.47 -0.91
10.00 0.45 22.13 10.00 -105.36 -0.09 2.00 118.17 0.02 5.00 -5.77 -0.87
10.00 0.45 22.13 10.00 63.01 0.16 2.00 94.66 0.02 5.00 -5.89 -0.85
10.00 2.68 3.73 10.00 91.32 0.11 2.00 148.39 0.01 5.00 -1.30 -3.85
10.00 0.08 125.08 10.00 171.01 0.06 2.00 112.67 0.02 5.00 1.59 3.15
10.00 1.87 5.35 10.00 199.22 0.05 2.00 195.98 0.01 5.00 0.41 12.26
10.00 2.45 4.08 10.00 45.69 0.22 2.00 201.70 0.01 5.00 0.31 15.96
10.00 3.85 2.60 10.00 194.10 0.05 2.00 199.34 0.01 5.00 -1.60 -3.12
10.00 -1.96 -5.09 10.00 236.14 0.04 2.00 49.03 0.04 5.00 -0.67 -7.48

273
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
share o.c.f.per Ratio share o.c.f.per ratio share o.c.f.per ratio share o.c.f.per ratio
price share price share price share price share
10.00 -9.97 -1.00 10.00 -19.46 -0.51 5.00 4.04 1.24 10.00 -3.30 -3.03
10.00 -10.71 -0.93 10.00 -12.75 -0.78 5.00 4.85 1.03 10.00 16.80 0.60
10.00 -39.68 -0.25 10.00 -14.48 -0.69 5.00 4.45 1.12 10.00 15.42 0.65
10.00 -6.60 -1.51 10.00 -7.63 -1.31 5.00 6.75 0.74 10.00 15.34 0.65
10.00 -4.98 -2.01 10.00 9.69 1.03 5.00 6.05 0.83 10.00 -25.70 -0.39
10.00 -8.85 -1.13 10.00 -8.95 -1.12 5.00 5.18 0.96 10.00 -14.91 -0.67
10.00 -6.97 -1.43 10.00 -9.17 -1.09 5.00 8.81 0.57 10.00 -1.37 -7.29
10.00 -10.50 -0.95 10.00 1.85 5.39 5.00 6.39 0.78 10.00 12.01 0.83
10.00 0.59 16.95 10.00 4.57 2.19 5.00 5.65 0.88 10.00 14.54 0.69
10.00 0.57 17.52 10.00 0.53 18.73 5.00 3.96 1.26 10.00 46.70 0.21

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

share o.c.f.per ratio share o.c.f.per ratio share o.c.f.per ratio share price o.c.f.per ratio
price share price share price share share
5.00 104.91 0.05 10.00 13.13 0.76 10.00 -5.50 -1.82 10.00 74.83 0.13
5.00 105.55 0.05 10.00 9.53 1.05 10.00 -6.90 -1.45 10.00 23.97 0.42
5.00 88.58 0.06 10.00 26.22 0.38 10.00 3.11 3.21 10.00 51.47 0.19
5.00 145.17 0.03 10.00 -15.82 -0.63 10.00 9.82 1.02 10.00 -17.55 -0.57
5.00 162.37 0.03 10.00 -0.42 -23.76 10.00 -0.60 -16.76 10.00 111.90 0.09
5.00 212.27 0.02 10.00 55.12 0.18 10.00 -2.09 -4.79 10.00 47.52 0.21
5.00 280.94 0.02 10.00 2.67 3.75 10.00 -1.37 -7.30 10.00 -8.12 -1.23
5.00 340.55 0.01 10.00 -2.52 -3.97 10.00 -0.72 -13.93 10.00 81.54 0.12
5.00 390.23 0.01 10.00 18.11 0.55 10.00 -0.12 -86.91 10.00 83.35 0.12
5.00 218.32 0.02 10.00 -9.08 -1.10 10.00 -1.04 -9.59 10.00 -22.66 -0.44

274
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
share o.c.f.per ratio share o.c.f.per ratio share o.c.f.per ratio share o.c.f.per Ratio
price share price share price share price share
5.00 27.61 0.18 10.00 126.39 0.08 1.00 14.27 0.07 10.00 17.54 0.57
5.00 11.06 0.45 10.00 27.97 0.36 1.00 4.26 0.23 10.00 59.53 0.17
5.00 0.18 28.45 10.00 67.87 0.15 1.00 9.28 0.11 10.00 -11.06 -0.90
5.00 0.39 12.69 10.00 41.70 0.24 1.00 8.80 0.11 10.00 57.77 0.17
5.00 0.45 11.13 10.00 45.00 0.22 1.00 11.02 0.09 10.00 151.63 0.07
5.00 0.42 11.84 10.00 -46.82 -0.21 1.00 1.79 0.56 10.00 30.07 0.33
5.00 0.64 7.82 10.00 46.80 0.21 1.00 19.81 0.05 10.00 98.59 0.10
5.00 0.83 6.02 10.00 23.92 0.42 1.00 15.24 0.07 10.00 103.59 0.10
5.00 -0.29 -17.00 10.00 71.57 0.14 1.00 27.31 0.04 10.00 38.62 0.26
5.00 0.86 5.80 10.00 108.94 0.09 1.00 23.11 0.04 10.00 49.98 0.20

CASH FLOW INTEREST COVERAGE RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

CFFO int. ratio CFFO int. ratio CFFO int. ratio CFFO int. ratio
109016.82 12734.69 9.56 958.02 278.10 4.44 27371.10 59.80 458.71 437.50 25.70 18.02
59138.27 17712.09 4.34 1672.56 170.59 10.80 20372.20 16.90 1206.46 843.40 20.20 42.75
111706.37 22437.89 5.98 1879.37 64.27 30.24 29599.10 222.40 134.09 1902.40 2.60 732.69
72829.96 35232.99 3.07 4066.00 16.64 245.35 21343.70 5.40 3953.54 3688.10 2.70 1366.96
55643.01 40092.72 2.39 3070.86 23.29 132.85 35457.10 4.90 7237.14 6859.60 16.70 411.75
176655.19 33045.91 6.35 3578.90 29.65 121.70 21473.20 64.90 331.87 19833.60 14.10 1407.64
167561.23 23207.20 8.22 1086.48 14.81 74.36 36454.10 4.80 7595.60 14743.30 21.20 696.44
215477.12 15537.87 14.87 7229.82 12.49 579.85 33392.00 6.20 5386.81 17618.60 27.90 632.49
541835.18 13612.26 40.80 2610.73 15.97 164.48 42607.90 4.40 9684.61 25153.90 30.40 828.43
-36265.00 9005.00 -3.03 3454.76 38.10 91.68 24895.30 35.20 708.25 16107.20 29.90 539.70

275
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
CFFO int. ratio CFFO int. ratio CFFO int. ratio CFFO int. ratio
852.20 117.40 8.26 5867.24 1678.02 4.50 26866.40 59.80 450.27 1068.39 1103.76 1.97
1871.40 255.10 8.34 7286.98 2271.82 4.21 22881.10 16.90 1354.91 -8822.59 2716.38 -2.25
553.90 964.40 1.57 -13921.61 3493.63 -2.98 23597.80 222.40 107.11 -10003.21 1701.95 -4.88
553.90 964.40 1.57 8325.65 794.97 11.47 18904.30 5.40 3501.80 -10906.14 2677.37 -3.07
3283.00 1106.70 3.97 12066.77 877.31 14.75 29634.10 4.90 6048.78 -2406.25 5551.22 0.57
98.00 571.10 1.17 22596.98 599.66 38.68 22500.00 64.90 347.69 3315.41 756.52 5.38
2291.40 456.70 6.02 26324.99 392.86 68.01 39137.90 4.80 8154.73 852.40 1028.36 1.83
3007.90 276.00 11.90 6038.00 429.00 15.07 40280.20 6.20 6497.81 655.10 1029.07 1.64
4722.00 214.40 23.02 25648.00 526.00 49.76 39808.60 4.40 9048.41 -3345.95 870.63 -2.84
-2406.80 106.70 -21.56 31203.00 1402.00 23.26 9790.50 35.20 279.14 -1397.41 164.76 -7.48

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

CFFO int. Ratio CFFO int. ratio CFFO int. ratio CFFO int. ratio
-1139.92 0.05 -22797.40 -2018.44 661.38 -2.05 2336.49 27.81 85.02 -343.01 347.87 0.01
-1224.34 0.09 -13108.95 -1322.28 577.86 -1.29 2979.75 -50.29 -58.25 1747.47 747.88 3.34
-4534.95 0.07 -64784.00 -1502.02 743.47 -1.02 2734.95 152.99 18.88 1603.38 1070.81 2.50
-754.66 0.01 -75465.00 -790.93 891.32 0.11 4145.71 131.34 32.56 1594.90 1061.20 2.50
-569.24 0.05 -11383.80 1314.20 902.33 2.46 3727.64 191.42 20.47 -2672.68 1332.84 -1.01
-1011.13 0.12 -8425.08 -1214.54 514.24 -1.36 3219.49 156.59 21.56 -1550.79 1033.33 -0.50
-796.81 0.00 0.00 -1479.34 364.75 -3.06 5470.50 143.36 39.16 -142.60 1577.65 0.91
-1200.60 0.00 0.00 310.35 328.25 1.95 3971.18 126.07 32.50 1248.58 1593.34 1.78
67.44 0.00 0.00 764.63 308.29 3.48 7027.08 130.10 55.01 1512.14 583.60 3.59
65.23 0.00 0.00 89.31 388.12 1.23 4923.87 127.46 39.63 4856.77 610.49 8.96

276
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
CFFO int. ratio CFFO int. ratio CFFO int. ratio CFFO int. ratio
30318.00 335.00 91.50 3999.58 1099.81 4.64 -2364.79 536.90 -3.40 10829.57 1885.67 6.74
30503.00 244.00 126.01 2902.83 2506.96 2.16 -2967.01 1053.75 -1.82 3469.15 916.72 4.78
25599.00 552.00 47.38 7984.49 4190.56 2.91 1338.28 1540.87 1.87 7448.70 1062.45 8.01
43842.00 1898.00 24.10 -4816.99 5176.11 0.07 8385.53 187.25 45.78 -2540.31 1861.41 -0.36
49036.00 1759.00 28.88 -128.16 6618.49 0.98 -509.37 65.37 -6.79 16193.53 589.49 28.47
64106.00 2060.00 32.12 16785.64 6171.57 3.72 -1784.22 29.29 -59.92 6876.58 582.05 12.81
84845.00 815.00 105.10 812.91 5706.58 1.14 -1169.12 135.12 -7.65 -1174.93 516.40 -1.28
102847.00 894.00 116.04 -767.80 6726.88 0.89 -612.76 80.86 -6.58 11800.17 400.02 30.50
117850.00 3457.00 35.09 5515.62 6596.90 1.84 -98.25 59.17 -0.66 12062.14 617.78 20.52
65932.00 758.00 87.98 -2764.50 6489.79 0.57 -910.49 0.00 0.00 -3278.81 1052.39 -2.12

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

CFFO int. ratio CFFO int. ratio CFFO int. ratio CFFO int. ratio
10474.04 2052.35 6.10 6400.18 1103.84 6.80 338.91 63.17 6.37 1515.85 67.37 23.50
4195.06 2187.69 2.92 1505.56 1143.99 2.32 202.40 46.99 5.31 5143.22 71.64 72.79
33.34 33.53 1.99 3653.59 1058.61 4.45 440.85 57.10 8.72 -955.88 82.39 -10.60
74.73 38.23 2.95 2258.44 1378.78 2.64 418.12 51.74 9.08 4991.10 123.54 41.40
90.93 29.19 4.12 2463.46 1008.62 3.44 523.79 22.20 24.59 13101.07 175.67 75.58
85.47 28.51 4.00 -2562.67 1151.07 -1.23 84.84 29.20 3.91 2598.06 211.57 13.28
129.42 23.19 6.58 2702.98 1219.13 3.22 941.09 48.96 20.22 8518.08 256.25 34.24
167.95 27.84 7.03 1381.47 1219.82 2.13 723.93 42.64 17.98 8950.00 297.61 31.07
-59.50 33.43 -0.78 4133.94 1260.48 4.28 1297.32 55.98 24.17 3336.93 169.35 20.70
174.34 54.76 4.18 6292.63 1342.78 5.69 1097.78 80.87 14.57 4318.19 224.66 20.22

277
CASH FLOW FROM OPERATING ACTIVITY TO FIXED ASSETS

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

CFFO FA ratio CFFO FA ratio CFFO FA ratio CFFO FA ratio
109016.82 481102.89 0.23 958.02 4177.05 0.23 27371.10 15211.10 1.80 437.50 748.10 0.58
59138.27 499175.79 0.12 1672.56 4246.11 0.39 20372.20 15482.90 1.32 843.40 1275.60 0.66
111706.37 546171.50 0.20 1879.37 4154.35 0.45 29599.10 15233.80 1.94 1902.40 1980.30 0.96
72829.96 597081.02 0.12 4066.00 4806.71 0.85 21343.70 20979.80 1.02 3688.10 3131.70 1.18
55643.01 584139.44 0.10 3070.86 5333.08 0.58 35457.10 21501.00 1.65 6859.60 5599.20 1.23
176655.19 537569.65 0.33 3578.90 7991.60 0.45 21473.20 21721.80 0.99 19833.60 9596.80 2.07
167561.23 512934.71 0.33 1086.48 8746.32 0.12 36454.10 20779.10 1.75 14743.30 8875.40 1.66
215477.12 517666.89 0.42 7229.82 9030.62 0.80 33392.00 20439.60 1.63 17618.60 12438.20 1.42
541835.18 537546.24 1.01 2610.73 9181.15 0.28 42607.90 19348.00 2.20 25153.90 18799.20 1.34
-36265.00 627213.00 -0.06 3454.76 13031.05 0.27 24895.30 18119.60 1.37 16107.20 23884.80 0.67

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

CFFO FA ratio CFFO FA ratio CFFO FA ratio CFFO FA ratio
852.20 14691.40 0.06 5867.24 29654.12 0.20 26866.40 15211.10 1.77 1068.39 14313.90 0.07
1871.40 15154.00 0.12 7286.98 40684.28 0.18 22881.10 15482.90 1.48 -8822.59 13013.30 -0.68
553.90 16527.40 0.03 -13921.61 54408.95 -0.26 23597.80 15233.80 1.55 -10003.21 12735.30 -0.79
553.90 16527.40 0.03 8325.65 81057.49 0.10 18904.30 20979.80 0.90 -10906.14 11888.54 -0.92
3283.00 16800.50 0.20 12066.77 84906.76 0.14 29634.10 21501.00 1.38 -2406.25 3908.67 -0.62
98.00 16384.20 0.01 22596.98 87730.86 0.26 22500.00 21721.80 1.04 3315.41 2931.45 1.13
2291.40 16307.40 0.14 26324.99 99792.25 0.26 39137.90 20779.10 1.88 852.40 2719.68 0.31
3007.90 16124.60 0.19 6038.00 113168.00 0.05 40280.20 20439.60 1.97 655.10 2558.23 0.26
4722.00 16451.10 0.29 25648.00 131763.00 0.19 39808.60 19348.00 2.06 -3345.95 2401.84 -1.39
-2406.80 17069.50 -0.14 31203.00 158763.00 0.20 9790.50 18119.60 0.54 -1397.41 2137.60 -0.65

278
MAHARATRA SCO. KINETIC ENG. MAHINDRA MAJESTIC AUTO
&MAHINDRA
CFFO FA ratio CFFO FA ratio CFFO FA ratio CFFO FA ratio
-1139.92 907.94 -1.26 -2018.44 10352.28 -0.19 2336.49 3702.72 0.63 -343.01 6898.90 -0.05
-1224.34 816.13 -1.50 -1322.28 10370.48 -0.13 2979.75 4371.85 0.68 1747.47 14684.55 0.12
-4534.95 720.62 -6.29 -1502.02 9987.67 -0.15 2734.95 5088.08 0.54 1603.38 15322.80 0.10
-754.66 732.46 -1.03 -790.93 10144.76 -0.08 4145.71 5821.34 0.71 1594.90 17160.53 0.09
-569.24 735.90 -0.77 1314.20 10164.47 0.13 3727.64 7105.39 0.52 -2672.68 16692.69 -0.16
-1011.13 438.13 -2.31 -1214.54 10199.23 -0.12 3219.49 8108.22 0.40 -1550.79 17558.71 -0.09
-796.81 717.52 -1.11 -1479.34 9768.23 -0.15 5470.50 9158.14 0.60 -142.60 16086.55 -0.01
-1200.60 704.96 -1.70 310.35 9032.43 0.03 3971.18 9672.58 0.41 1248.58 14721.13 0.08
67.44 1252.61 0.05 764.63 8779.42 0.09 7027.08 10988.12 0.64 1512.14 7167.29 0.21
65.23 1469.28 0.04 89.31 8302.41 0.01 4923.87 12501.54 0.39 4856.77 2415.90 2.01

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

CFFO FA ratio CFFO FA ratio CFFO FA ratio CFFO FA ratio
30318.00 54123.00 0.56 3999.58 23733.19 0.17 -2364.79 1702.41 -1.39 10829.57 11910.19 0.91
30503.00 69580.00 0.44 2902.83 75737.95 0.04 -2967.01 1718.20 -1.73 3469.15 12749.86 0.27
25599.00 84626.00 0.30 7984.49 85460.23 0.09 1338.28 1645.08 0.81 7448.70 14338.62 0.52
43842.00 117414.00 0.37 -4816.99 61227.54 -0.08 8385.53 1551.57 5.40 -2540.31 14931.12 -0.17
49036.00 134118.00 0.37 -128.16 57845.55 0.00 -509.37 1487.53 -0.34 16193.53 15194.52 1.07
64106.00 141421.00 0.45 16785.64 50646.55 0.33 -1784.22 1288.12 -1.39 6876.58 16448.34 0.42
84845.00 135169.00 0.63 812.91 47264.86 0.02 -1169.12 1264.07 -0.92 -1174.93 21138.69 -0.06
102847.00 145415.00 0.71 -767.80 44365.54 -0.02 -612.76 1128.08 -0.54 11800.17 29082.24 0.41
117850.00 154849.00 0.76 5515.62 43734.27 0.13 -98.25 2325.26 -0.04 12062.14 29353.38 0.41
65932.00 170079.00 0.39 -2764.50 25515.81 -0.11 -910.49 2203.63 -0.41 -3278.81 39989.49 -0.08

279
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
CFFO FA ratio CFFO FA ratio CFFO FA ratio CFFO FA ratio
10474.04 29613.93 0.35 6400.18 16436.04 0.39 338.91 955.73 0.35 1515.85 5105.15 0.30
4195.06 33329.59 0.13 1505.56 17475.63 0.09 202.40 937.59 0.22 5143.22 5341.77 0.96
33.34 394.98 0.08 3653.59 19056.19 0.19 440.85 1078.08 0.41 -955.88 6320.43 -0.15
74.73 408.80 0.18 2258.44 20208.54 0.11 418.12 1047.57 0.40 4991.10 9152.76 0.55
90.93 405.87 0.22 2463.46 21595.64 0.11 523.79 1173.79 0.45 13101.07 12430.16 1.05
85.47 418.17 0.20 -2562.67 21824.02 -0.12 84.84 1418.99 0.06 2598.06 13679.01 0.19
129.42 456.90 0.28 2702.98 41352.75 0.07 941.09 1750.55 0.54 8518.08 12982.11 0.66
167.95 521.13 0.32 1381.47 42253.38 0.03 723.93 2046.15 0.35 8950.00 13690.01 0.65
-59.50 699.87 -0.09 4133.94 40750.95 0.10 1297.32 2503.00 0.52 3336.93 21493.35 0.16
174.34 760.54 0.23 6292.63 43344.23 0.15 1097.78 2836.54 0.39 4318.19 24044.62 0.18

CASH FLOW FROM OPERATING ACTIVITY TO TOTAL REVENUE

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

CFFO T.R. ratio CFFO T.R. Ratio CFFO T.R. ratio CFFO T.R. ratio
109016.82 787259.74 0.14 958.02 12993.63 0.07 27371.10 120434.80 0.23 437.50 4968.50 0.09
59138.27 1209360.68 0.05 1672.56 22200.02 0.08 20372.20 169747.40 0.12 843.40 7468.40 0.11
111706.37 1365847.17 0.08 1879.37 29941.53 0.06 29599.10 201370.20 0.15 1902.40 10950.40 0.17
72829.96 1329855.89 0.05 4066.00 36581.66 0.11 21343.70 207927.40 0.10 3688.10 17825.70 0.21
55643.01 1056084.53 0.05 3070.86 43305.91 0.07 35457.10 208559.20 0.17 6859.60 31475.20 0.22
176655.19 1448593.35 0.12 3578.90 49866.11 0.07 21473.20 221944.30 0.10 19833.60 63662.70 0.31
167561.23 1987725.23 0.08 1086.48 53235.73 0.02 36454.10 236008.60 0.15 14743.30 72673.50 0.20
215477.12 2133166.91 0.10 7229.82 47784.29 0.15 33392.00 243100.00 0.14 17618.60 81713.70 0.22
541835.18 2652451.19 0.20 2610.73 57190.13 0.05 42607.90 269105.10 0.16 25153.90 95442.40 0.26
-36265.00 2905495.00 -0.01 3454.76 67363.14 0.05 24895.30 328992.70 0.08 16107.20 103025.20 0.16

280
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio
852.20 24647.70 0.03 5867.24 105185.71 0.06 26866.40 120434.80 0.22 1068.39 63973.56 0.02
1871.40 32514.90 0.06 7286.98 157405.22 0.05 22881.10 169747.40 0.13 -8822.59 76867.36 -0.11
553.90 39427.80 0.01 -13921.61 210960.31 -0.07 23597.80 201370.20 0.12 -10003.21 50266.73 -0.20
553.90 39427.80 0.01 8325.65 201637.37 0.04 18904.30 207927.40 0.09 -10906.14 73462.74 -0.15
3283.00 63729.20 0.05 12066.77 208156.18 0.06 29634.10 208559.20 0.14 -2406.25 18897.16 -0.13
98.00 40464.80 0.00 22596.98 242949.89 0.09 22500.00 221944.30 0.10 3315.41 2098.16 1.58
2291.40 35300.00 0.06 26324.99 313123.10 0.08 39137.90 236008.60 0.17 852.40 237.73 3.59
3007.90 42110.40 0.07 6038.00 357951.00 0.02 40280.20 243100.00 0.17 655.10 218.09 3.00
4722.00 50753.80 0.09 25648.00 359214.00 0.07 39808.60 269105.10 0.15 -3345.95 938.58 -3.56
-2406.80 61772.10 -0.04 31203.00 373372.00 0.08 9790.50 328992.70 0.03 -1397.41 3606.01 -0.39

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio
-1139.92 2433.54 -0.47 -2018.44 8205.69 -0.25 2336.49 18801.46 0.12 -343.01 14462.91 -0.02
-1224.34 4109.31 -0.30 -1322.28 10099.48 -0.13 2979.75 23803.24 0.13 1747.47 15492.49 0.11
-4534.95 7048.38 -0.64 -1502.02 8654.17 -0.17 2734.95 32319.31 0.08 1603.38 19219.07 0.08
-754.66 5992.32 -0.13 -790.93 8682.18 -0.09 4145.71 40990.33 0.10 1594.90 16171.08 0.10
-569.24 5753.12 -0.10 1314.20 6099.73 0.22 3727.64 41226.49 0.09 -2672.68 11488.29 -0.23
-1011.13 6986.19 -0.14 -1214.54 6115.75 -0.20 3219.49 39794.36 0.08 -1550.79 12588.10 -0.12
-796.81 11714.99 -0.07 -1479.34 6459.65 -0.23 5470.50 44488.83 0.12 -142.60 13238.15 -0.01
-1200.60 2923.63 -0.41 310.35 8347.80 0.04 3971.18 48438.53 0.08 1248.58 18708.79 0.07
67.44 8242.99 0.01 764.63 10847.93 0.07 7027.08 50481.35 0.14 1512.14 1745.32 0.87
65.23 9592.52 0.01 89.31 12376.69 0.01 4923.87 55302.97 0.09 4856.77 9168.20 0.53

281
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio
30318.00 301232.00 0.10 3999.58 15255.72 0.26 -2364.79 13862.49 -0.17 10829.57 72222.95 0.15
30503.00 375224.00 0.08 2902.83 22984.67 0.13 -2967.01 16954.23 -0.18 3469.15 89300.48 0.04
25599.00 364139.00 0.07 7984.49 27031.98 0.30 1338.28 21195.58 0.06 7448.70 104221.76 0.07
43842.00 444003.00 0.10 -4816.99 55408.25 -0.09 8385.53 19341.92 0.43 -2540.31 101105.82 -0.03
49036.00 445235.00 0.11 -128.16 16281.09 -0.01 -509.37 18928.65 -0.03 16193.53 88599.28 0.18
64106.00 508022.00 0.13 16785.64 16954.76 0.99 -1784.22 15834.63 -0.11 6876.58 111434.00 0.06
84845.00 665156.00 0.13 812.91 10120.36 0.08 -1169.12 14863.11 -0.08 -1174.93 117258.51 -0.01
102847.00 795460.00 0.13 -767.80 3765.10 -0.20 -612.76 10067.09 -0.06 11800.17 137311.02 0.09
117850.00 840399.00 0.14 5515.62 3220.17 1.71 -98.25 5711.01 -0.02 12062.14 152034.00 0.08
65932.00 885813.00 0.07 -2764.50 3224.91 -0.86 -910.49 6599.72 -0.14 -3278.81 117725.46 -0.03

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio CFFO T.R. ratio
10474.04 53896.83 0.19 6400.18 37446.50 0.17 338.91 4484.68 0.08 1515.85 34730.36 0.04
4195.06 82941.55 0.05 1505.56 48223.72 0.03 202.40 6298.66 0.03 5143.22 43128.33 0.12
33.34 1051.23 0.03 3653.59 54880.64 0.07 440.85 7163.23 0.06 -955.88 53527.45 -0.02
74.73 1056.68 0.07 2258.44 46853.92 0.05 418.12 7088.84 0.06 4991.10 48375.87 0.10
90.93 1232.54 0.07 2463.46 38121.14 0.06 523.79 7996.15 0.07 13101.07 63292.22 0.21
85.47 1401.11 0.06 -2562.67 38176.15 -0.07 84.84 10130.83 0.01 2598.06 56345.71 0.05
129.42 1633.03 0.08 2702.98 48785.92 0.06 941.09 12194.77 0.08 8518.08 65894.27 0.13
167.95 1589.67 0.11 1381.47 50079.25 0.03 723.93 13363.43 0.05 8950.00 71072.73 0.13
-59.50 1766.74 -0.03 4133.94 61182.29 0.07 1297.32 15617.66 0.08 3336.93 80916.48 0.04
174.34 1932.94 0.09 6292.63 71757.42 0.09 1097.78 18217.46 0.06 4318.19 65846.24 0.07

282
CASH FLOW FROM OPERATING ACTIVITY TO NET INCOME

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio
109016.82 57744.98 1.89 958.02 2141.12 0.45 27371.10 17027.30 1.61 437.50 3131.10 0.14
59138.27 75118.52 0.79 1672.56 2717.95 0.62 20372.20 33397.30 0.61 843.40 3816.20 0.22
111706.37 56597.66 1.97 1879.37 1559.03 1.21 29599.10 30040.50 0.99 1902.40 1447.60 1.31
72829.96 43370.67 1.68 4066.00 2591.91 1.57 21343.70 30435.70 0.70 3688.10 2786.20 1.32
55643.01 2938.11 18.94 3070.86 2979.47 1.03 35457.10 32433.20 1.09 6859.60 5589.20 1.23
176655.19 33480.60 5.28 3578.90 4057.11 0.88 21473.20 28137.40 0.76 19833.60 12298.50 1.61
167561.23 72177.58 2.32 1086.48 4740.03 0.23 36454.10 36524.10 1.00 14743.30 13087.60 1.13
215477.12 123159.48 1.75 7229.82 3732.04 1.94 33392.00 39417.10 0.85 17618.60 15599.40 1.13
541835.18 152712.56 3.55 2610.73 4636.92 0.56 42607.90 39577.50 1.08 25153.90 17237.60 1.46
-36265.00 193652.00 -0.19 3454.76 5309.62 0.65 24895.30 47497.30 0.52 16107.20 20486.70 0.79

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio
852.20 27457.30 0.03 5867.24 13850.24 0.42 26866.40 17027.30 1.58 1068.39 -13227.52 -0.08
1871.40 32101.50 0.06 7286.98 700.00 10.41 22881.10 33397.30 0.69 -8822.59 -4776.41 1.85
553.90 38938.80 0.01 -13921.61 82433.18 -0.17 23597.80 30040.50 0.79 -10003.21 -2995.66 3.34
553.90 38938.80 0.01 8325.65 1427.88 5.83 18904.30 30435.70 0.62 -10906.14 -7120.35 1.53
3283.00 62915.10 0.05 12066.77 7769.43 1.55 29634.10 32433.20 0.91 -2406.25 -307.41 7.83
98.00 39858.30 0.00 22596.98 10136.27 2.23 22500.00 28137.40 0.80 3315.41 -4190.23 -0.79
2291.40 34772.10 0.07 26324.99 17941.94 1.47 39137.90 36524.10 1.07 852.40 -3204.47 -0.27
3007.90 41675.80 0.07 6038.00 17776.00 0.34 40280.20 39417.10 1.02 655.10 -1913.85 -0.34
4722.00 50159.70 0.09 25648.00 14695.00 1.75 39808.60 39577.50 1.01 -3345.95 5588.42 -0.60
-2406.80 61963.60 -0.04 31203.00 15196.00 2.05 9790.50 47497.30 0.21 -1397.41 2644.68 -0.53

283
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio
-1139.92 841.14 -1.36 -2018.44 -2589.36 0.78 2336.49 4588.37 0.51 -343.01 3655.93 -0.09
-1224.34 2172.54 -0.56 -1322.28 -3832.99 0.34 2979.75 6208.54 0.48 1747.47 4365.21 0.40
-4534.95 -649.09 6.99 -1502.02 -693.26 2.17 2734.95 2878.89 0.95 1603.38 1915.10 0.84
-754.66 4884.13 -0.15 -790.93 -1356.82 0.58 4145.71 3352.82 1.24 1594.90 -584.66 -2.73
-569.24 4759.76 -0.12 1314.20 -5900.19 -0.22 3727.64 3758.35 0.99 -2672.68 5980.85 -0.45
-1011.13 5475.78 -0.18 -1214.54 1022.47 -1.19 3219.49 3321.11 0.97 -1550.79 2636.86 -0.59
-796.81 10099.88 -0.08 -1479.34 -119.46 12.38 5470.50 3234.33 1.69 -142.60 929.70 -0.15
-1200.60 1255.88 -0.96 310.35 -1417.30 -0.22 3971.18 3958.10 1.00 1248.58 -980.14 -1.27
67.44 171404.62 0.00 764.63 -751.12 -1.02 7027.08 4345.84 1.62 1512.14 2133.34 0.71
65.23 314341.21 0.00 89.31 -881.19 -0.10 4923.87 4808.39 1.02 4856.77 -3398.50 -1.43

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio
30318.00 100499.00 0.30 3999.58 1423.19 2.81 -2364.79 -8451.48 0.28 10829.57 3874.08 2.80
30503.00 118578.00 0.26 2902.83 2111.63 1.37 -2967.01 -10162.61 0.29 3469.15 6637.96 0.52
25599.00 16352.00 1.57 7984.49 2283.84 3.50 1338.28 -1993.99 -0.67 7448.70 4187.10 1.78
43842.00 23921.00 1.83 -4816.99 8764.69 -0.55 8385.53 -600.06 - -2540.31 3643.29 -0.70
13.97
49036.00 27830.00 1.76 -128.16 2514.90 -0.05 -509.37 1359.64 -0.37 16193.53 1740.10 9.31
64106.00 37112.00 1.73 16785.64 -4583.34 -3.66 -1784.22 1108.86 -1.61 6876.58 3693.96 1.86
84845.00 53713.00 1.58 812.91 -2518.47 -0.32 -1169.12 548.38 -2.13 -1174.93 5116.36 -0.23
102847.00 75594.00 1.36 -767.80 -10490.40 0.07 -612.76 -1027.67 0.60 11800.17 6280.95 1.88
117850.00 80530.00 1.46 5515.62 -12295.01 -0.45 -98.25 -1862.22 0.05 12062.14 6326.71 1.91
65932.00 72976.00 0.90 -2764.50 -19417.84 0.14 -910.49 -463.26 1.97 -3278.81 819.42 -4.00

284
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
CFFO N.I Ratio CFFO N.I ratio CFFO N.I ratio CFFO N.I ratio
10474.04 2345.80 4.47 6400.18 3926.07 1.63 338.91 88.01 3.85 1515.85 2493.14 0.61
4195.06 5278.91 0.79 1505.56 3745.95 0.40 202.40 194.58 1.04 5143.22 3008.36 1.71
33.34 72.29 0.46 3653.59 1242.23 2.94 440.85 249.07 1.77 -955.88 4992.70 -0.19
74.73 35.42 2.11 2258.44 301.81 7.48 418.12 116.02 3.60 4991.10 4857.34 1.03
90.93 53.66 1.69 2463.46 334.52 7.36 523.79 261.63 2.00 13101.07 8293.82 1.58
85.47 71.16 1.20 -2562.67 -4738.95 0.54 84.84 347.83 0.24 2598.06 6951.68 0.37
129.42 141.66 0.91 2702.98 23.17 116.66 941.09 481.58 1.95 8518.08 7413.33 1.15
167.95 172.80 0.97 1381.47 -2384.51 -0.58 723.93 591.28 1.22 8950.00 7175.45 1.25
-59.50 82.05 -0.73 4133.94 -991.63 -4.17 1297.32 659.72 1.97 3336.93 11197.97 0.30
174.34 99.86 1.75 6292.63 1997.17 3.15 1097.78 666.88 1.65 4318.19 4552.15 0.95

RETURN ON EQUITY RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

N.I. SH. Equity ratio N.I. SH. Equity ratio N.I. SH. Equity ratio N.I. SH. Equity ratio
57744.98 403227.53 0.14 2141.12 3364.66 0.64 17027.30 29283.40 0.58 3131.10 3818.60 0.82
75118.52 444897.39 0.17 2717.95 4035.77 0.67 33397.30 49102.20 0.68 3816.20 5400.40 0.71
56597.66 420817.35 0.13 1559.03 5608.61 0.28 30040.50 60410.70 0.50 1447.60 6290.50 0.23
43370.67 445510.46 0.10 2591.91 7430.35 0.35 30435.70 79019.50 0.39 2786.20 8213.40 0.34
2938.11 444788.43 0.01 2979.47 9447.11 0.32 32433.20 96080.20 0.34 5589.20 12336.60 0.45
33480.60 511869.38 0.07 4057.11 12106.68 0.34 28137.40 106921.50 0.26 12298.50 21507.80 0.57
72177.58 551413.83 0.13 4740.03 15460.09 0.31 36524.10 122916.60 0.30 13087.60 23364.10 0.56
123159.48 612606.76 0.20 3732.04 18069.61 0.21 39417.10 170341.30 0.23 15599.40 39225.90 0.40
152712.56 716479.75 0.21 4636.92 21939.00 0.21 39577.50 191038.60 0.21 17237.60 53722.30 0.32
193652.00 833243.00 0.23 5309.62 25859.71 0.21 47497.30 217799.00 0.22 20486.70 71264.50 0.29

285
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
N.I. SH. Equity ratio N.I. SH. Equity ratio N.I. SH. ratio N.I. SH. ratio
Equity Equity
27457.30 17378.30 1.58 13850.24 28331.64 0.49 17027.30 29283.40 0.58 -13227.52 17244.38 -0.77
32101.50 17984.50 1.78 700.00 33427.74 0.02 33397.30 49102.20 0.68 -4776.41 8856.73 -0.54
38938.80 16139.60 2.41 82433.18 114329.54 0.72 30040.50 60410.70 0.50 -2995.66 2876.70 -1.04
38938.80 16139.60 2.41 1427.88 115294.95 0.01 30435.70 79019.50 0.39 -7120.35 -3159.64 2.25
62915.10 18313.80 3.44 7769.43 122601.91 0.06 32433.20 96080.20 0.34 -307.41 -3493.40 0.09
39858.30 17963.00 2.22 10136.27 131688.02 0.08 28137.40 106921.50 0.26 -4190.23 -6139.60 0.68
34772.10 18722.90 1.86 17941.94 148044.10 0.12 36524.10 122916.60 0.30 -3204.47 -9345.41 0.34
41675.80 19911.60 2.09 17776.00 166541.00 0.11 39417.10 170341.30 0.23 -1913.85 -11259.26 0.17
50159.70 25481.10 1.97 14695.00 179879.00 0.08 39577.50 191038.60 0.21 5588.42 -5671.38 -0.99
61963.60 30228.60 2.05 15196.00 193487.00 0.08 47497.30 217799.00 0.22 2644.68 -3026.70 -0.87

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

N.I. SH. Equity Ratio N.I. SH. Equity ratio N.I. SH. Equity ratio N.I. SH. Equity ratio
841.14 20054.55 0.04 -2589.36 10150.17 -0.26 4588.37 7826.77 0.59 3655.93 5355.28 0.68
2172.54 21031.66 0.10 -3832.99 9667.31 -0.40 6208.54 10313.39 0.60 4365.21 6064.55 0.72
-649.09 20249.74 -0.03 -693.26 5097.76 -0.14 2878.89 12104.69 0.24 1915.10 7979.65 0.24
4884.13 22459.69 0.22 -1356.82 7006.85 -0.19 3352.82 14658.92 0.23 -584.66 7394.99 -0.08
4759.76 23876.73 0.20 -5900.19 -1658.23 3.56 3758.35 16791.19 0.22 5980.85 13375.84 0.45
5475.78 25225.96 0.22 1022.47 4191.25 0.24 3321.11 19255.09 0.17 2636.86 16012.70 0.16
10099.88 31199.29 0.32 -119.46 4757.45 -0.03 3234.33 22423.17 0.14 929.70 16942.40 0.05
1255.88 32455.17 0.04 -1417.30 3870.79 -0.37 3958.10 25669.56 0.15 -980.14 15962.26 -0.06
171404.62 822526.99 0.21 -751.12 3206.56 -0.23 4345.84 30294.04 0.14 2133.34 41264.54 0.05
314341.21 1132321.54 0.28 -881.19 2324.45 -0.38 4808.39 34209.23 0.14 -3398.50 37866.04 -0.09

286
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
N.I. SH. Equity ratio N.I. SH. ratio N.I. SH. ratio N.I. SH. Equity Ratio
Equity Equity
100499.00 118351.00 0.85 1423.19 18830.82 0.08 -8451.48 5357.64 -1.58 3874.08 18973.05 0.20
118578.00 138675.00 0.86 2111.63 69819.39 0.03 -10162.61 5357.64 -1.90 6637.96 21278.76 0.31
16352.00 151874.00 0.11 2283.84 71044.24 0.03 -1993.99 -7847.95 0.25 4187.10 24120.32 0.17
23921.00 185789.00 0.13 8764.69 51324.86 0.17 -600.06 3759.71 -0.16 3643.29 26409.12 0.14
27830.00 209780.00 0.13 2514.90 49861.80 0.05 1359.64 8304.99 0.16 1740.10 27641.29 0.06
37112.00 237042.00 0.16 -4583.34 44836.14 -0.10 1108.86 9321.70 0.12 3693.96 30290.17 0.12
53713.00 298842.00 0.18 -2518.47 40645.71 -0.06 548.38 9870.08 0.06 5116.36 34013.11 0.15
75594.00 361711.00 0.21 -10490.40 30155.31 -0.35 -1027.67 8842.41 -0.12 6280.95 40251.77 0.16
80530.00 417573.00 0.19 -12295.01 -985.36 12.48 -1862.22 6969.80 -0.27 6326.71 40379.57 0.16
72976.00 461415.00 0.16 -19417.84 18432.48 -1.05 -463.26 6604.94 -0.07 819.42 39805.57 0.02

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

N.I. SH. Equity ratio N.I. SH. Equity ratio N.I. SH. Equity ratio N.I. SH. Equity Ratio
2345.80 24455.97 0.10 3926.07 14965.47 0.26 88.01 865.30 0.10 2493.14 12688.01 0.20
5278.91 26029.69 0.20 3745.95 20013.30 0.19 194.58 999.41 0.19 3008.36 16402.59 0.18
72.29 282.49 0.26 1242.23 19367.66 0.06 249.07 1169.57 0.21 4992.70 20490.95 0.24
35.42 292.06 0.12 301.81 19134.84 0.02 116.02 1224.67 0.09 4857.34 24437.94 0.20
53.66 343.63 0.16 334.52 19176.65 0.02 261.63 1415.28 0.18 8293.82 31215.05 0.27
71.16 374.61 0.19 -4738.95 14862.59 - 347.83 1645.36 0.21 6951.68 36353.72 0.19
0.32
141.66 503.11 0.28 23.17 23262.11 0.00 481.58 1958.34 0.25 7413.33 42011.17 0.18
172.80 611.62 0.28 -2384.51 20809.15 - 591.28 2408.33 0.25 7175.45 48904.89 0.15
0.11
82.05 664.00 0.12 -991.63 20170.98 - 659.72 2880.42 0.23 11197.97 59636.96 0.19
0.05
99.86 688.70 0.14 1997.17 22162.52 0.09 666.88 3347.32 0.20 4552.15 58989.94 0.08

287
RETURN ON ASSETS RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio
57744.98 927686.81 0.06 2141.12 7736.43 0.28 17027.30 87337.00 0.19 3131.10 5600.90 0.56
75118.52 1058900.00 0.07 2717.95 7465.25 0.36 33397.30 93883.50 0.36 3816.20 7818.70 0.49
56597.66 1191574.71 0.05 1559.03 9662.72 0.16 30040.50 110810.70 0.27 1447.60 10242.40 0.14
43370.67 1309670.21 0.03 2591.91 12295.16 0.21 30435.70 124786.20 0.24 2786.20 14831.80 0.19
2938.11 1280799.57 0.00 2979.47 14460.13 0.21 32433.20 147476.00 0.22 5589.20 22288.90 0.25
33480.60 1331149.02 0.03 4057.11 17742.48 0.23 28137.40 155623.20 0.18 12298.50 34180.00 0.36
72177.58 1338552.14 0.05 4740.03 22150.27 0.21 36524.10 156727.60 0.23 13087.60 36239.10 0.36
123159.48 1379955.61 0.09 3732.04 24549.10 0.15 39417.10 208148.90 0.19 15599.40 55218.40 0.28
152712.56 1658608.22 0.09 4636.92 29930.23 0.15 39577.50 238194.90 0.17 17237.60 77946.70 0.22
193652.00 1822440.00 0.11 5309.62 35347.47 0.15 47497.30 273803.90 0.17 20486.70 94774.10 0.22

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

N.I. T.A. Ratio N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio
27457.30 29022.40 0.95 13850.24 78773.42 0.18 17027.30 87337.00 0.19 -13227.52 38039.42 -0.35
32101.50 31307.10 1.03 700.00 104766.77 0.01 33397.30 93883.50 0.36 -4776.41 42029.67 -0.11
38938.80 34159.10 1.14 82433.18 166436.68 0.50 30040.50 110810.70 0.27 -2995.66 35248.17 -0.08
38938.80 34159.10 1.14 1427.88 170783.36 0.01 30435.70 124786.20 0.24 -7120.35 26682.17 -0.27
62915.10 34927.00 1.80 7769.43 177187.51 0.04 32433.20 147476.00 0.22 -307.41 18898.73 -0.02
39858.30 33870.90 1.18 10136.27 197168.23 0.05 28137.40 155623.20 0.18 -4190.23 7047.22 -0.59
34772.10 33363.30 1.04 17941.94 229385.82 0.08 36524.10 156727.60 0.23 -3204.47 5158.62 -0.62
41675.80 35131.50 1.19 17776.00 269765.00 0.07 39417.10 208148.90 0.19 -1913.85 3913.28 -0.49
50159.70 42694.90 1.17 14695.00 251903.00 0.06 39577.50 238194.90 0.17 5588.42 5040.10 1.11
61963.60 49969.40 1.24 15196.00 283590.00 0.05 47497.30 273803.90 0.17 2644.68 3039.69 0.87

288
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
N.I. T.A. ratio N.I. T.A. Ratio N.I. T.A. ratio N.I. T.A. ratio
841.14 22355.95 0.04 -2589.36 25768.97 -0.10 4588.37 16143.13 0.28 3655.93 12465.44 0.29
2172.54 23819.62 0.09 -3832.99 24079.86 -0.16 6208.54 19840.62 0.31 4365.21 20985.33 0.21
-649.09 23972.35 -0.03 -693.26 24704.59 -0.03 2878.89 23769.96 0.12 1915.10 21368.33 0.09
4884.13 28257.95 0.17 -1356.82 31752.48 -0.04 3352.82 27453.59 0.12 -584.66 23588.82 -0.02
4759.76 30028.99 0.16 -5900.19 26201.40 -0.23 3758.35 31288.65 0.12 5980.85 25472.28 0.23
5475.78 31832.60 0.17 1022.47 23435.99 0.04 3321.11 32944.87 0.10 2636.86 28003.45 0.09
10099.88 33733.97 0.30 -119.46 16251.34 -0.01 3234.33 35499.57 0.09 929.70 38119.97 0.02
1255.88 34411.63 0.04 -1417.30 15819.71 -0.09 3958.10 39338.31 0.10 -980.14 36846.98 -0.03
171404.62 824310.56 0.21 -751.12 15543.43 -0.05 4345.84 47446.70 0.09 2133.34 54464.01 0.04
314341.21 1172301.08 0.27 -881.19 16105.79 -0.05 4808.39 52697.06 0.09 -3398.50 45242.60 -0.08

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio
100499.00 163613.00 0.61 1423.19 50978.83 0.03 -8451.48 10567.89 -0.80 3874.08 48909.96 0.08
118578.00 184210.00 0.64 2111.63 112815.51 0.02 -10162.61 10785.23 -0.94 6637.96 54313.70 0.12
16352.00 223022.00 0.07 2283.84 121565.62 0.02 -1993.99 10063.80 -0.20 4187.10 62201.38 0.07
23921.00 266880.00 0.09 8764.69 112113.03 0.08 -600.06 12586.15 -0.05 3643.29 65887.47 0.06
27830.00 305997.00 0.09 2514.90 105703.15 0.02 1359.64 15229.71 0.09 1740.10 65060.90 0.03
37112.00 335510.00 0.11 -4583.34 92611.19 -0.05 1108.86 18064.73 0.06 3693.96 69508.48 0.05
53713.00 419400.00 0.13 -2518.47 96579.16 -0.03 548.38 17808.30 0.03 5116.36 72668.68 0.07
75594.00 509933.00 0.15 -10490.40 91790.57 -0.11 -1027.67 15779.54 -0.07 6280.95 78263.72 0.08
80530.00 593701.00 0.14 -12295.01 76444.56 -0.16 -1862.22 11102.97 -0.17 6326.71 78534.86 0.08
72976.00 629318.00 0.12 -19417.84 74344.67 -0.26 -463.26 10729.27 -0.04 819.42 98666.11 0.01

289
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio N.I. T.A. ratio
2345.80 62631.87 0.04 3926.07 50441.24 0.08 88.01 2687.23 0.03 2493.14 19363.60 0.13
5278.91 80055.02 0.07 3745.95 54190.45 0.07 194.58 2857.66 0.07 3008.36 24777.39 0.12
72.29 919.45 0.08 1242.23 54260.93 0.02 249.07 3114.47 0.08 4992.70 32158.43 0.16
35.42 914.01 0.04 301.81 52184.77 0.01 116.02 3119.27 0.04 4857.34 33583.64 0.14
53.66 944.60 0.06 334.52 49734.42 0.01 261.63 3564.70 0.07 8293.82 47001.01 0.18
71.16 978.30 0.07 -4738.95 49943.17 -0.09 347.83 4604.20 0.08 6951.68 47213.73 0.15
141.66 1133.66 0.12 23.17 56676.00 0.00 481.58 4952.18 0.10 7413.33 53340.80 0.14
172.80 1259.12 0.14 -2384.51 58536.60 -0.04 591.28 5904.67 0.10 7175.45 61864.40 0.12
82.05 1793.82 0.05 -991.63 59212.30 -0.02 659.72 7156.24 0.09 11197.97 78577.96 0.14
99.86 1732.69 0.06 1997.17 60909.63 0.03 666.88 8369.36 0.08 4552.15 74825.24 0.06

P/E RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio
53.35 3.18 16.78 48.65 7.76 6.27 1927.50 117.70 16.38 1194.50 28.17 42.40
52.30 4.75 11.01 115.93 16.11 7.20 1374.00 115.40 11.91 1507.88 46.18 32.65
28.65 2.13 13.45 116.78 24.77 4.71 1715.00 103.80 16.52 2915.00 53.62 54.36
23.00 1.63 14.11 165.33 23.62 7.00 1890.70 105.20 17.97 4972.98 103.15 48.21
19.70 0.11 179.09 330.00 27.16 12.15 1991.18 112.10 17.76 14749.15 206.38 71.47
71.45 1.20 59.54 573.75 18.49 31.03 2106.25 97.20 21.67 19090.60 453.20 42.12
98.70 2.54 38.86 476.80 21.60 22.07 2330.75 126.20 18.47 24393.93 482.45 50.56
87.25 4.24 20.58 444.10 17.01 26.11 2851.80 132.30 21.56 28160.55 573.50 49.10
144.90 5.34 27.13 433.70 21.05 20.60 2906.28 140.60 20.67 21340.68 629.07 33.92
89.95 6.76 13.31 335.65 24.21 13.86 2932.63 161.60 18.15 15726.23 753.37 20.87

290
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio
205.75 14.67 14.03 343.85 45.86 7.50 1927.50 111.77 17.25 22.78 -3.17 -7.19
72.50 11.74 6.18 808.00 44.49 18.16 1374.00 100.53 13.67 16.40 0.05 328.00
62.90 5.84 10.77 495.88 625.62 0.79 1715.00 119.09 14.40 10.42 -1.85 -5.63
62.90 5.84 10.77 369.50 10.84 34.09 1890.70 106.07 17.83 7.85 -3.89 -2.02
119.80 20.53 5.84 346.20 58.97 5.87 1991.18 105.61 18.85 7.30 -0.17 -42.94
134.95 6.26 21.56 1374.50 76.93 17.87 2106.25 127.23 16.55 6.99 -2.13 -3.28
135.00 7.49 18.02 2579.75 136.17 18.95 2330.75 156.86 14.86 5.20 -1.54 -3.38
497.28 16.84 29.53 4465.28 136.55 32.70 2851.80 169.12 16.86 9.76 -0.91 -10.73
916.28 28.85 31.76 2881.43 111.53 25.84 2906.28 185.14 15.70 7.95 2.71 2.93
748.58 40.48 18.49 1628.00 111.70 14.57 2932.63 169.48 17.30 7.10 1.28 5.55

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio
313.05 7.36 42.53 77.08 0.72 107.06 844.73 37.97 22.25 79.40 20.00 3.97
336.98 19.01 17.73 120.98 -12.66 -9.56 717.20 46.21 15.52 80.98 6.82 11.87
307.95 -5.68 -54.22 87.10 -9.35 -9.32 679.95 48.97 13.89 56.38 18.42 3.06
407.83 42.74 9.54 76.60 -11.43 -6.70 886.28 56.85 15.59 39.28 -5.62 -6.99
479.03 41.65 11.50 40.88 -44.72 -0.91 997.35 63.67 15.66 40.78 57.52 0.71
883.50 47.91 18.44 49.05 6.30 7.79 1230.85 56.23 21.89 61.65 25.36 2.43
1207.13 88.37 13.66 79.73 -1.78 -44.79 1232.00 53.05 23.22 82.98 8.94 9.28
1786.88 10.99 162.59 78.18 -9.67 -8.08 1309.60 66.70 19.63 112.05 -9.43 -11.88
2276.48 53.16 42.82 72.50 -4.24 -17.10 732.15 36.64 19.98 140.50 3.36 41.82
3322.60 63.70 52.16 38.10 -4.98 -7.65 672.90 40.29 16.70 139.98 45.62 3.07

291
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio
1440.45 86.45 16.66 134.35 5.48 24.52 27.50 -6.51 -4.22 340.00 19.44 17.49
1235.45 79.22 15.60 90.00 6.07 14.83 37.45 -3.98 -9.41 369.00 25.26 14.61
1339.00 56.60 23.66 69.10 7.52 9.19 36.50 -4.64 -7.87 407.50 28.93 14.09
1370.00 79.19 17.30 77.75 28.86 2.69 21.98 -1.12 -19.63 276.00 25.18 10.96
1765.00 92.13 19.16 55.30 8.28 6.68 15.70 1.59 9.87 626.00 12.02 52.08
3666.50 122.85 29.85 44.28 -15.09 -2.93 31.18 1.30 23.98 1144.50 25.53 44.83
3490.00 177.58 19.65 33.25 -8.29 -4.01 25.78 0.64 40.28 747.50 35.35 21.15
6013.00 242.91 24.75 32.13 -34.54 -0.93 40.25 -1.20 -33.54 1225.00 43.40 28.23
8814.50 255.62 34.48 24.65 -40.82 -0.60 57.93 -2.19 -26.45 771.50 43.54 17.72
6856.50 248.30 27.61 7.03 -64.73 -0.11 31.00 -0.58 -53.45 799.00 5.87 136.12

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. ratio M.P.P.S. E.P.S. Ratio M.P.P.S. E.P.S. ratio
116.53 3.26 35.75 768.45 42.37 18.14 89.70 1.85 48.49 296.23 48.99 6.05
146.30 9.82 14.90 1182.73 30.28 39.06 56.08 4.10 13.68 444.13 53.46 8.31
161.58 30.13 5.36 277.70 3.90 71.21 42.75 5.24 8.16 469.55 57.79 8.13
323.50 18.67 17.33 289.28 0.93 311.05 36.00 2.43 14.81 363.00 56.22 6.46
464.93 27.00 17.22 396.50 1.03 384.95 93.08 5.51 16.89 870.38 96.00 9.07
1800.00 35.19 51.15 555.15 -14.72 -37.71 274.43 7.32 37.49 1422.38 80.46 17.68
2002.58 71.39 28.05 352.10 -0.18 -1956.11 297.30 10.30 28.86 1458.50 85.81 17.00
3608.00 52.19 69.13 464.75 -7.30 -63.66 429.40 11.75 36.54 1835.60 83.05 22.10
4881.00 27.14 179.85 349.15 -3.05 -114.48 637.88 13.95 45.73 2642.48 129.61 20.39
3505.00 59.14 59.27 181.95 5.94 30.63 483.50 14.11 34.27 1378.15 53.32 25.85

292
P/CF RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET ratio
C.F.
53.35 43031.54 0.00 48.65 -21.59 -2.25 1927.50 -354.60 -5.44 1194.50 -1029.00 -1.16
52.30 -33998.26 0.00 115.93 119.17 0.97 1374.00 550.80 2.49 1507.88 -23.60 -63.89
28.65 -15132.91 0.00 116.78 846.99 0.14 1715.00 9500.90 0.18 2915.00 5.20 560.58
23.00 -1904.07 -0.01 165.33 2669.88 0.06 1890.70 -6224.70 -0.30 4972.98 152.10 32.70
19.70 -234.73 -0.08 330.00 707.62 0.47 1991.18 -640.00 -3.11 14749.15 243.40 60.60
71.45 69907.79 0.00 573.75 -1160.45 -0.49 2106.25 887.90 2.37 19090.60 236.30 80.79
98.70 83001.13 0.00 476.80 -1300.57 -0.37 2330.75 2424.80 0.96 24393.93 -84.90 -287.33
87.25 -69390.30 0.00 444.10 4419.17 0.10 2851.80 -5392.00 -0.53 28160.55 41.60 676.94
144.90 12494.00 0.01 433.70 -2431.08 -0.18 2906.28 4575.10 0.64 21340.68 764.90 27.90
89.95 33298.00 0.00 335.65 -701.45 -0.48 2932.63 1714.00 1.71 15726.23 6012.50 2.62

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET ratio M.P.P.S. NET C.F. ratio
C.F.
205.75 -84.60 -2.43 343.85 911.76 0.38 1927.50 497.00 3.88 22.78 2113.27 0.01
72.50 1112.30 0.07 808.00 -1099.13 -0.74 1374.00 -233.80 -5.88 16.40 -1163.84 -0.01
62.90 -999.60 -0.06 495.88 44738.86 0.01 1715.00 -55.90 -30.68 10.42 -839.99 -0.01
62.90 -999.60 -0.06 369.50 - -0.02 1890.70 1012.20 1.87 7.85 -1284.19 -0.01
23695.49
119.80 302.00 0.40 346.20 -908.33 -0.38 1991.18 -708.40 -2.81 7.30 -335.87 -0.02
134.95 -254.90 -0.53 1374.50 8518.36 0.16 2106.25 315.60 6.67 6.99 -65.78 -0.11
135.00 -206.70 -0.65 2579.75 1708.49 1.51 2330.75 -415.00 -5.62 5.20 -8.05 -0.65
497.28 232.50 2.14 4465.28 3002.00 1.49 2851.80 -115.50 -24.69 9.76 0.38 25.68
916.28 942.60 0.97 2881.43 -4699.00 -0.61 2906.28 189.80 15.31 7.95 1651.55 0.00
748.58 -626.20 -1.20 1628.00 -3729.00 -0.44 2932.63 63.00 46.55 7.10 -1386.46 -0.01

293
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET ratio
C.F.
313.05 -591.69 -0.53 77.08 -485.16 -0.16 844.73 207.18 4.08 79.40 82.49 0.96
336.98 -121.49 -2.77 120.98 -1376.57 -0.09 717.20 -1138.96 -0.63 80.98 36.36 2.23
307.95 389.65 0.79 87.10 -4.97 -17.53 679.95 543.47 1.25 56.38 -117.39 -0.48
407.83 2424.02 0.17 76.60 -2.98 -25.70 886.28 27.87 31.80 39.28 -2.61 -15.05
479.03 -1711.70 -0.28 40.88 27.69 1.48 997.35 496.63 2.01 40.78 -134.73 -0.30
883.50 1088.69 0.81 49.05 399.57 0.12 1230.85 -788.42 -1.56 61.65 838.41 0.07
1207.13 -628.00 -1.92 79.73 -408.16 -0.20 1232.00 -74.63 -16.51 82.98 -832.52 -0.10
1786.88 2143.27 0.83 78.18 108.29 0.72 1309.60 -283.76 -4.62 112.05 -55.05 -2.04
2276.48 23.98 94.93 72.50 -109.84 -0.66 732.15 883.35 0.83 140.50 -8.75 -16.06
3322.60 -5.40 -615.30 38.10 -15.25 -2.50 672.90 819.94 0.82 139.98 0.70 199.97

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio
1440.45 -18408.00 -0.08 134.35 836.97 0.16 27.50 66.55 0.41 340.00 2423.42 0.14
1235.45 24103.00 0.05 90.00 880.53 0.10 37.45 -269.28 -0.14 369.00 850.70 0.43
1339.00 806.00 1.66 69.10 -67.86 -1.02 36.50 1608.75 0.02 407.50 3818.09 0.11
1370.00 -1562.00 -0.88 77.75 301.77 0.26 21.98 85.53 0.26 276.00 -2367.85 -0.12
1765.00 -552.00 -3.20 55.30 -363.52 -0.15 15.70 466.89 0.03 626.00 221.98 2.82
3666.50 -514.00 -7.13 44.28 -2.23 -19.86 31.18 -40.31 -0.77 1144.50 -2304.73 -0.50
3490.00 207.00 16.86 33.25 8.44 3.94 25.78 -933.72 -0.03 747.50 -777.05 -0.96
6013.00 -261.00 -23.04 32.13 -72.28 -0.44 40.25 -571.90 -0.07 1225.00 -228.36 -5.36
8814.50 569.00 15.49 24.65 45.92 0.54 57.93 -773.53 -0.07 771.50 -228.36 -3.38
6856.50 1071.00 6.40 7.03 -33.87 -0.21 31.00 -929.08 -0.03 799.00 1457.06 0.55

294
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
M.P.P.S. NET ratio M.P.P.S. NET ratio M.P.P.S. NET C.F. ratio M.P.P.S. NET C.F. ratio
C.F. C.F.
116.53 -1953.59 -0.06 768.45 86.23 8.91 89.70 141.66 0.63 296.23 -375.37 -0.79
146.30 -7026.19 -0.02 1182.73 632.10 1.87 56.08 -174.09 -0.32 444.13 578.09 0.77
161.58 0.57 283.47 277.70 -437.28 -0.64 42.75 -134.57 -0.32 469.55 -65.79 -7.14
323.50 -76.00 -4.26 289.28 -795.75 -0.36 36.00 173.38 0.21 363.00 1274.08 0.28
464.93 88.33 5.26 396.50 -17.44 -22.74 93.08 65.57 1.42 870.38 -1039.63 -0.84
1800.00 -17.99 -100.06 555.15 670.60 0.83 274.43 -77.61 -3.54 1422.38 -423.96 -3.35
2002.58 74.78 26.78 352.10 1066.47 0.33 297.30 26.88 11.06 1458.50 864.99 1.69
3608.00 -0.97 -3719.59 464.75 427.07 1.09 429.40 -96.89 -4.43 1835.60 901.51 2.04
4881.00 -122.78 -39.75 349.15 318.04 1.10 637.88 91.22 6.99 2642.48 -1933.10 -1.37
3505.00 64.01 54.76 181.95 -57.62 -3.16 483.50 176.63 2.74 1378.15 23.30 59.15

P B RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio
53.35 30.31 1.76 48.65 57.50 0.85 1927.50 202.40 9.52 1194.50 14.17 84.27
52.30 33.44 1.56 115.93 68.96 1.68 1374.00 169.69 8.10 1507.88 20.01 75.36
28.65 15.81 1.81 116.78 76.68 1.52 1715.00 208.77 8.21 2915.00 23.30 125.12
23.00 16.74 1.37 165.33 63.99 2.58 1890.70 273.07 6.92 4972.98 30.38 163.72
19.70 16.72 1.18 330.00 81.36 4.06 1991.18 332.03 6.00 14749.15 45.52 324.00
71.45 17.99 3.97 573.75 52.13 11.01 2106.25 369.50 5.70 19090.60 79.19 241.08
98.70 19.37 5.09 476.80 66.57 7.16 2330.75 424.77 5.49 24393.93 85.87 284.09
87.25 21.52 4.05 444.10 77.80 5.71 2851.80 588.66 4.84 28160.55 143.90 195.70
144.90 24.48 5.92 433.70 94.46 4.59 2906.28 660.19 4.40 21340.68 196.93 108.37
89.95 28.39 3.17 335.65 111.34 3.01 2932.63 752.67 3.90 15726.23 261.04 60.24

295
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio
205.75 16.45 12.50 343.85 214.41 1.60 1927.50 173.51 11.11 22.78 10.67 2.13
72.50 17.03 4.26 808.00 252.97 3.19 1374.00 148.03 9.28 16.40 5.50 2.98
62.90 13.17 4.78 495.88 865.22 0.57 1715.00 214.81 7.98 10.42 1.66 6.28
62.90 13.17 4.78 369.50 872.52 0.42 1890.70 250.69 7.54 7.85 -1.71 -4.60
119.80 14.94 8.02 346.20 927.82 0.37 1991.18 280.41 7.10 7.30 -1.89 -3.87
134.95 14.65 9.21 1374.50 996.58 1.38 2106.25 327.56 6.43 6.99 -2.94 -2.38
135.00 15.27 8.84 2579.75 1120.36 2.30 2330.75 397.83 5.86 5.20 -4.47 -1.16
497.28 16.24 30.61 4465.28 1260.34 3.54 2851.80 506.32 5.63 9.76 -5.39 -1.81
916.28 20.79 44.08 2881.43 1361.28 2.12 2906.28 589.33 4.93 7.95 -2.71 -2.93
748.58 24.66 30.36 1628.00 1464.26 1.11 2932.63 643.82 4.56 7.10 -1.45 -4.90

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio
313.05 175.47 1.78 77.08 97.86 0.79 844.73 13.53 62.43 79.40 51.50 1.54
336.98 184.02 1.83 120.98 93.21 1.30 717.20 16.80 42.69 80.98 58.32 1.39
307.95 177.18 1.74 87.10 49.15 1.77 679.95 19.72 34.49 56.38 76.73 0.73
407.83 196.51 2.08 76.60 67.56 1.13 886.28 23.88 37.12 39.28 71.11 0.55
479.03 208.91 2.29 40.88 -12.22 -3.34 997.35 27.26 36.58 40.78 128.63 0.32
883.50 220.72 4.00 49.05 30.90 1.59 1230.85 31.00 39.70 61.65 153.98 0.40
1207.13 272.98 4.42 79.73 29.49 2.70 1232.00 36.10 34.12 82.98 162.92 0.51
1786.88 283.97 6.29 78.18 23.14 3.38 1309.60 41.33 31.69 112.05 153.50 0.73
2276.48 7196.84 0.32 72.50 19.17 3.78 732.15 24.37 30.05 140.50 396.81 0.35
3322.60 9907.44 0.34 38.10 13.89 2.74 672.90 27.52 24.45 139.98 364.13 0.38

296
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share Ratio M.P.P.S. B.V.share ratio
1440.45 409.52 3.52 134.35 61.83 2.17 27.50 12.46 2.21 340.00 131.10 2.59
1235.45 479.84 2.57 90.00 229.26 0.39 37.45 12.46 3.01 369.00 147.03 2.51
1339.00 525.52 2.55 69.10 233.28 0.30 36.50 -18.25 -2.00 407.50 166.67 2.44
1370.00 615.20 2.23 77.75 168.53 0.46 21.98 4.40 4.99 276.00 182.48 1.51
1765.00 694.64 2.54 55.30 163.73 0.34 15.70 9.73 1.61 626.00 191.00 3.28
3666.50 784.91 4.67 44.28 147.23 0.30 31.18 10.92 2.86 1144.50 209.30 5.47
3490.00 989.54 3.53 33.25 133.47 0.25 25.78 11.56 2.23 747.50 235.03 3.18
6013.00 1197.72 5.02 32.13 99.02 0.32 40.25 10.36 3.89 1225.00 278.14 4.40
8814.50 1382.69 6.37 24.65 -3.24 -7.62 57.93 8.16 7.10 771.50 279.02 2.77
6856.50 1527.86 4.49 7.03 60.53 0.12 31.00 7.57 4.10 799.00 275.05 2.90

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio M.P.P.S. B.V.share ratio
116.53 64.47 1.81 768.45 295.53 2.60 89.70 36.43 2.46 296.23 146.85 2.02
146.30 68.62 2.13 1182.73 371.79 3.18 56.08 21.04 2.67 444.13 189.84 2.34
161.58 1.49 108.49 277.70 359.79 0.77 42.75 24.62 1.74 469.55 237.16 1.98
323.50 1.54 210.10 289.28 353.30 0.82 36.00 25.78 1.40 363.00 282.85 1.28
464.93 1.70 273.74 396.50 350.32 1.13 93.08 29.79 3.12 870.38 361.29 2.41
1800.00 1.85 972.15 555.15 271.51 2.04 274.43 34.63 7.92 1422.38 420.76 3.38
2002.58 2.49 805.31 352.10 402.74 0.87 297.30 41.22 7.21 1458.50 486.24 3.00
3608.00 3.02 1193.50 464.75 360.27 1.29 429.40 50.69 8.47 1835.60 566.03 3.24
4881.00 3.28 1487.23 349.15 349.22 1.00 637.88 60.63 10.52 2642.48 690.24 3.83
3505.00 3.40 1029.67 181.95 383.70 0.47 483.50 70.46 6.86 1378.15 682.75 2.02

297
FINANCIAL LEVERAGE RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

total debt share's equity Ratio total debt share's ratio total debt share's ratio total share's ratio
equity equity debt equity
220389.18 403227.53 0.01 2317.16 3364.66 0.69 13385.80 29283.40 0.46 174.70 3818.60 0.05
256826.48 444897.39 0.00 600.00 4035.77 0.15 3251.50 49102.20 0.07 170.60 5400.40 0.03
239510.11 420817.35 0.57 388.65 5608.61 0.07 974.80 60410.70 0.02 200.10 6290.50 0.03
350482.43 445510.46 0.79 0.00 7430.35 0.00 712.70 79019.50 0.01 40.00 8213.40 0.00
388391.32 444788.43 0.87 0.00 9447.11 0.00 577.40 96080.20 0.01 0.00 12336.60 0.00
259133.61 511869.38 0.51 0.00 12106.68 0.00 1117.70 106921.50 0.01 225.70 21507.80 0.01
198437.55 551413.83 0.36 0.00 15460.09 0.00 1624.80 122916.60 0.01 225.70 23364.10 0.01
134495.97 612606.76 0.22 0.00 18069.61 0.00 0.00 170341.30 0.00 0.00 39225.90 0.00
51568.72 716479.75 0.07 0.00 21939.00 0.00 0.00 191038.60 0.00 859.80 53722.30 0.02
39840.00 833243.00 0.05 0.00 25859.71 0.00 0.00 217799.00 0.00 763.80 71264.50 0.01

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

total debt share's equity ratio total debt share's ratio total share's ratio total debt share's ratio
equity debt equity equity
2986.00 17378.30 0.17 14783.10 28331.64 0.52 660.30 34650.20 0.02 9002.52 17244.38 0.52
3726.00 17984.50 0.21 24950.72 33427.74 0.75 324.10 29560.60 0.01 13116.73 8856.73 1.48
4599.30 16139.60 0.28 30337.90 114329.54 0.27 0.00 42898.30 0.00 12725.52 2876.70 4.42
4599.30 16139.60 0.28 4198.70 115294.95 0.04 0.00 50062.40 0.00 7170.79 -3159.64 -2.27
3504.00 18313.80 0.19 2038.25 122601.91 0.02 0.00 55998.70 0.00 1878.40 -3493.40 -0.54
4084.10 17963.00 0.23 1073.00 131688.02 0.01 0.00 65413.30 0.00 1607.54 -6139.60 -0.26
3017.60 18722.90 0.16 264.00 148044.10 0.00 0.00 79447.50 0.00 965.23 -9345.41 -0.10
2152.70 19911.60 0.11 19846.00 166541.00 0.12 0.00 101112.90 0.00 416.15 -11259.26 -0.04
136.80 25481.10 0.01 0.00 179879.00 0.00 0.00 117688.80 0.00 0.00 -5671.38 0.00
2693.80 30228.60 0.09 25650.00 193487.00 0.13 0.00 128571.20 0.00 0.00 -3026.70 0.00

298
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
total debt share's ratio total debt share's ratio total debt share's ratio total debt share's ratio
equity equity equity equity
0.00 20054.55 0.00 13044.25 10150.17 1.29 2880.15 7826.77 0.37 3905.11 5355.28 0.73
0.00 21031.66 0.00 13191.49 9667.31 1.36 2405.29 10313.39 0.23 11539.02 6064.55 1.90
0.00 20249.74 0.00 14311.77 5097.76 2.81 3174.22 12104.69 0.26 9157.67 7979.65 1.15
0.00 22459.69 0.00 7793.04 7006.85 1.11 3227.07 14658.92 0.22 10646.71 7394.99 1.44
0.00 23876.73 0.00 7290.28 -1658.23 -4.40 3745.16 16791.19 0.22 9021.80 13375.84 0.67
0.00 25225.96 0.00 6533.12 4191.25 1.56 2620.38 19255.09 0.14 10159.24 16012.70 0.63
0.00 31199.29 0.00 6982.05 4757.45 1.47 1843.55 22423.17 0.08 17256.38 16942.40 1.02
0.00 32455.17 0.00 6758.35 3870.79 1.75 2737.43 25669.56 0.11 16320.73 15962.26 1.02
0.00 822526.99 0.00 5010.72 3206.56 1.56 2864.37 30294.04 0.09 10237.52 41264.54 0.25
0.00 1132321.54 0.00 5812.09 2324.45 2.50 2480.32 34209.23 0.07 5470.89 37866.04 0.14

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

total debt share's ratio total debt share's ratio total share's ratio total debt share's ratio
equity equity debt equity equity
8214.00 118351.00 0.07 20131.79 18830.82 1.07 5302.43 5357.64 0.99 8463.37 18973.05 0.45
3093.00 138675.00 0.02 29729.94 69819.39 0.43 9084.69 5357.64 1.70 8500.00 21278.76 0.40
10783.00 151874.00 0.07 26611.90 71044.24 0.37 5519.21 -7847.95 -0.70 10000.00 24120.32 0.41
13892.00 185789.00 0.07 39962.19 51324.86 0.78 1415.24 3759.71 0.38 16209.33 26409.12 0.61
16851.00 209780.00 0.08 25721.29 49861.80 0.52 2323.03 8304.99 0.28 0.00 27641.29 0.00
1802.00 237042.00 0.01 19431.28 44836.14 0.43 3248.94 9321.70 0.35 2229.43 30290.17 0.07
774.00 298842.00 0.00 31279.84 40645.71 0.77 2675.03 9870.08 0.27 5500.00 34013.11 0.16
4836.00 361711.00 0.01 29437.65 30155.31 0.98 2664.75 8842.41 0.30 3863.87 40251.77 0.10
1108.00 417573.00 0.00 19280.31 -985.36 -19.57 989.00 6969.80 0.14 4012.06 40379.57 0.10
1496.00 461415.00 0.00 14992.68 18432.48 0.81 1200.00 6604.94 0.18 18848.93 39805.57 0.47

299
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
total debt share's equity ratio total debt share's equity ratio total share's ratio total share's ratio
debt equity debt equity
28869.44 24455.97 1.18 16594.54 14965.47 1.11 1003.29 865.30 1.16 1080.21 12688.01 0.09
36048.00 26029.69 1.38 15898.75 20013.30 0.79 785.42 999.41 0.79 991.66 16402.59 0.06
327.72 282.49 1.16 11011.63 19367.66 0.57 715.46 1169.57 0.61 1599.00 20490.95 0.08
387.50 292.06 1.33 14268.69 19134.84 0.75 545.86 1224.67 0.45 0.00 24437.94 0.00
299.41 343.63 0.87 14515.53 19176.65 0.76 475.88 1415.28 0.34 0.00 31215.05 0.00
326.89 374.61 0.87 20080.97 14862.59 1.35 918.74 1645.36 0.56 0.00 36353.72 0.00
279.47 503.11 0.56 14254.68 23262.11 0.61 758.46 1958.34 0.39 0.00 42011.17 0.00
271.86 611.62 0.44 19061.38 20809.15 0.92 1085.14 2408.33 0.45 0.00 48904.89 0.00
587.48 664.00 0.88 16255.78 20170.98 0.81 1036.97 2880.42 0.36 0.00 59636.96 0.00
678.81 688.70 0.99 17537.53 22162.52 0.79 1377.94 3347.32 0.41 0.00 58989.94 0.00

ASSET TURNOVER RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

net sales total assets ratio net sales total assets ratio net sales total assets ratio net sales total ratio
assets
724471.05 927686.81 0.78 11984.74 7736.43 1.55 115085.00 87337.00 1.32 4384.70 5600.90 0.78
1111770.90 1058900.00 1.05 20158.71 7465.25 2.70 159981.20 93883.50 1.70 6664.50 7818.70 0.85
1284199.32 1191574.71 1.08 29882.21 9662.72 3.09 188802.70 110810.70 1.70 10492.60 10242.40 1.02
1248120.00 1309670.21 0.95 36285.98 12295.16 2.95 194889.60 124786.20 1.56 17024.70 14831.80 1.15
994342.67 1280799.57 0.78 42925.60 14460.13 2.97 197176.40 147476.00 1.34 30312.20 22288.90 1.36
1356218.36 1331149.02 1.02 49007.23 17742.48 2.76 211039.30 155623.20 1.36 61880.30 34180.00 1.81
1882158.21 1338552.14 1.41 52801.10 22150.27 2.38 222527.80 156727.60 1.42 69838.60 36239.10 1.93
2146793.92 1379955.61 1.56 47219.90 24549.10 1.92 226948.70 208148.90 1.09 79440.60 55218.40 1.44
2652451.19 1658608.22 1.60 56457.20 29930.23 1.89 250986.40 238194.90 1.05 91677.30 77946.70 1.18
2905495.00 1822440.00 1.59 66134.76 35347.47 1.87 295672.50 273803.90 1.08 97151.60 94774.10 1.03

300
ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS
net sales total ratio net sales total assets ratio net sales total ratio net sales total assets ratio
assets assets
27457.30 29022.40 0.95 95603.40 78773.42 1.21 157581.80 85230.90 1.85 57315.24 38039.42 1.51
32101.50 31307.10 1.03 148143.74 104766.77 1.41 192450.30 108446.90 1.77 66152.71 42029.67 1.57
38938.80 34159.10 1.14 208500.58 166436.68 1.25 233680.50 98889.20 2.36 49547.57 35248.17 1.41
38938.80 34159.10 1.14 197272.21 170783.36 1.16 235827.40 96416.50 2.45 72289.45 26682.17 2.71
62915.10 37927.00 1.66 202162.67 177187.51 1.14 251249.10 100973.00 2.49 18278.11 18898.73 0.97
39858.30 33870.90 1.18 236372.25 197168.23 1.20 273506.00 105217.00 2.60 1509.94 7047.22 0.21
34772.10 33363.30 1.04 305979.39 229385.82 1.33 281604.80 123406.90 2.28 81.29 5158.62 0.02
41675.80 35131.50 1.19 349457.00 269765.00 1.30 308461.20 146942.60 2.10 102.21 3913.28 0.03
50159.70 42694.90 1.17 353101.00 251903.00 1.40 328718.20 167388.00 1.96 0.00 5040.10 0.00
61963.60 49969.40 1.24 365210.00 283590.00 1.29 336505.40 176411.90 1.91 53.97 3039.69 0.02

MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO

net sales total assets ratio net sales total assets ratio net sales total assets ratio net sales total assets ratio
414.88 22355.95 0.02 4905.69 25768.97 0.19 18038.05 16143.13 1.12 12767.87 12465.44 1.02
619.61 23819.62 0.03 9092.65 24079.86 0.38 22757.51 19840.62 1.15 14806.53 20985.33 0.71
667.83 23972.35 0.03 8306.83 24704.59 0.34 31392.03 23769.96 1.32 16466.85 21368.33 0.77
669.96 28257.95 0.02 8021.60 31752.48 0.25 39903.12 27453.59 1.45 15342.89 23588.82 0.65
417.89 30028.99 0.01 5732.10 26201.40 0.22 39963.36 31288.65 1.28 10462.16 25472.28 0.41
695.58 31832.60 0.02 5332.43 23435.99 0.23 38391.61 32944.87 1.17 11174.41 28003.45 0.40
897.41 33733.97 0.03 6037.65 16251.34 0.37 43638.90 35499.57 1.23 12363.15 38119.97 0.32
849.56 34411.63 0.02 7949.80 15819.71 0.50 47096.04 39338.31 1.20 17679.67 36846.98 0.48
1264.04 824310.56 0.00 10256.16 15543.43 0.66 49444.99 47446.70 1.04 896.64 54464.01 0.02
1449.52 1172301.08 0.00 11577.35 16105.79 0.72 53614.00 52697.06 1.02 8145.58 45242.60 0.18

301
MARUTI SUZUKI PREMIER SCOOTERS INDIA SML
net sales total assets ratio net sales total assets ratio net sales total assets ratio net sales total assets ratio
289585.00 163613.00 1.77 14994.13 50978.83 0.29 13003.60 8373.78 1.55 71675.94 48909.96 1.47
361282.00 184210.00 1.96 22743.79 112815.51 0.20 15998.82 8664.24 1.85 88508.97 54313.70 1.63
347059.00 223022.00 1.56 26715.43 121565.62 0.22 20798.97 10063.80 2.07 103583.11 62201.38 1.67
426126.00 266880.00 1.60 24083.21 112113.03 0.21 18973.44 9536.00 1.99 100210.16 65887.47 1.52
426448.00 305997.00 1.39 16137.50 105703.15 0.15 17487.01 15229.71 1.15 87566.09 55060.90 1.59
486055.00 335510.00 1.45 16623.32 92611.19 0.18 15193.20 18064.73 0.84 109808.54 67508.48 1.63
650546.00 419400.00 1.55 9996.48 96579.16 0.10 13903.03 17808.30 0.78 115716.12 72668.68 1.59
772662.00 509933.00 1.52 3553.65 91790.57 0.04 9644.33 15779.54 0.61 136063.24 78263.72 1.74
819944.00 593701.00 1.38 2006.54 76444.56 0.03 5055.27 11102.97 0.46 151618.97 78534.86 1.93
860203.00 629318.00 1.37 1650.20 74344.67 0.02 6385.20 10729.27 0.60 117413.99 98666.11 1.19

SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS

net sales total assets ratio net sales total assets ratio net sales total assets ratio net sales total assets Ratio
48796.19 62631.87 0.78 35593.05 50441.24 0.71 4363.11 2687.23 1.62 34453.65 19363.60 1.78
76282.46 80055.02 0.95 48040.46 54190.45 0.89 6179.48 2857.66 2.16 42531.05 24777.39 1.72
1017.00 919.45 1.11 54306.56 54260.93 1.00 7141.52 3114.47 2.29 53064.04 32158.43 1.65
1018.56 914.01 1.11 44765.72 52184.77 0.86 7065.00 3119.27 2.26 48165.87 33583.64 1.43
1196.76 944.60 1.27 34288.11 49734.42 0.69 7965.94 3564.70 2.23 62421.87 47001.01 1.33
1346.11 978.30 1.38 36294.74 49943.17 0.73 10098.22 4604.20 2.19 55159.73 47213.73 1.17
1527.94 1133.66 1.35 47383.61 56676.00 0.84 12090.92 4952.18 2.44 64667.04 53340.80 1.21
1515.35 1259.12 1.20 49100.41 58536.60 0.84 13190.06 5904.67 2.23 69512.04 61864.40 1.12
1672.29 1793.82 0.93 58689.81 59212.30 0.99 15518.63 7156.24 2.17 76395.35 78577.96 0.97
1833.07 1732.69 1.06 69202.76 60909.63 1.14 18209.92 8369.36 2.18 61479.94 74825.24 0.82

302
CURRENT RATIO

ASHOK LEYLAND ATUL AUTO BAJAJ AUTO EICHER MOTORS

C.A C.L Ratio C.A C.L ratio C.A C.L ratio C.A C.L ratio
927686.81 259206.57 3.58 3559.38 1236.15 2.88 72125.90 20262.50 3.56 4852.80 1174.50 4.13
1058900.00 303794.77 3.49 3219.14 1830.36 1.76 78400.60 24266.50 3.23 6543.10 1647.90 3.97
645403.21 484370.23 1.33 5508.37 3322.60 1.66 95576.90 46251.60 2.07 8262.10 3764.40 2.19
712589.19 529609.77 1.35 7488.45 4138.78 1.81 103806.40 41336.30 2.51 11700.10 6349.50 1.84
696660.13 458660.20 1.52 9127.05 4375.19 2.09 125975.00 47302.40 2.66 16689.70 9568.20 1.74
793579.37 503551.94 1.58 9750.88 5065.50 1.92 133901.40 44767.90 2.99 24583.20 11963.70 2.05
825617.43 520986.36 1.58 13403.95 6142.32 2.18 135948.50 29530.20 4.60 27363.70 12015.90 2.28
862288.72 618108.03 1.40 15518.48 5822.79 2.67 187709.30 32125.80 5.84 42780.20 14536.60 2.94
1121061.98 824698.21 1.36 20749.08 7108.85 2.92 218846.90 41112.90 5.32 59147.50 21946.30 2.70
1195227.00 878896.00 1.36 22316.42 8948.82 2.49 255684.30 48736.80 5.25 70889.30 19783.80 3.58

ESCORT FORCE MOTORS HERO MOTOCORP HINDUSTAN MOTORS

C.A C.L ratio C.A C.L ratio C.A C.L ratio C.A C.L ratio
14331.00 7310.30 1.96 49119.30 30379.11 1.62 68161.70 38050.60 1.79 23725.52 21762.06 1.09
16153.10 8819.00 1.83 64082.49 39556.34 1.62 66392.70 50636.80 1.31 29016.37 22228.56 1.31
17631.70 14899.60 1.18 112027.73 40471.75 2.77 60645.70 20482.70 2.96 22512.87 27550.94 0.82
17631.70 14899.60 1.18 89725.87 45937.61 1.95 65085.80 41706.80 1.56 14793.63 27712.25 0.53
21126.50 13691.90 1.54 92280.75 49423.33 1.87 69999.40 44230.00 1.58 14990.06 21070.46 0.71
17486.70 13369.00 1.31 109437.37 59428.29 1.84 68964.60 38834.20 1.78 4115.77 10922.84 0.38
17055.90 13130.80 1.30 129593.57 71668.60 1.81 78985.50 40488.20 1.95 2438.94 13505.78 0.18
19006.90 14165.50 1.34 156597.00 90133.00 1.74 98336.20 40933.30 2.40 1355.05 14522.74 0.09
26243.80 16491.80 1.59 120140.00 68298.00 1.76 117658.70 43433.20 2.71 2638.26 10407.37 0.25
32899.90 18684.80 1.76 124827.00 65311.00 1.91 124807.50 41303.60 3.02 902.09 5790.56 0.16

303
MAHARATRA SCO. KINETIC ENG. MAHINDRA &MAHINDRA MAJESTIC AUTO
C.A C.L ratio C.A C.L ratio C.A C.L ratio C.A C.L ratio
21448.01 1525.22 14.06 15416.69 4722.92 3.26 12440.41 3400.00 3.66 5566.54 2185.50 2.55
23003.49 1592.53 14.44 13709.38 4526.74 3.03 15468.77 4761.68 3.25 6300.78 2467.14 2.55
23251.73 834.34 27.87 14716.92 6063.05 2.43 18681.88 7326.05 2.55 6045.53 4632.45 1.31
27525.49 3335.54 8.25 21607.72 20054.12 1.08 21632.25 8150.39 2.65 6428.29 5937.63 1.08
29293.09 4092.76 7.16 16036.93 22141.57 0.72 24183.26 8766.79 2.76 8779.59 3303.46 2.66
31394.47 4936.67 6.36 13236.77 14170.18 0.93 24836.65 8974.27 2.77 10444.74 2042.86 5.11
33016.45 1142.82 28.89 6483.11 5995.59 1.08 26341.43 9844.32 2.68 22033.42 5400.26 4.08
33706.67 911.60 36.98 6787.28 6792.83 1.00 29665.73 9458.95 3.14 22125.85 6024.73 3.67
823057.95 1018.56 808.06 6764.01 7615.84 0.89 36458.58 13329.02 2.74 47296.72 1410.82 33.52
1170831.80 982.47 1191.72 7803.38 8483.53 0.92 40195.52 14334.07 2.80 42826.70 1869.53 22.91

MARUTI SUZUKI PREMIER SCOOTERS INDIA SML

C.A C.L ratio C.A C.L ratio C.A C.L ratio C.A C.L ratio
109490.00 29365.00 3.73 27245.64 9263.39 2.94 6671.37 4536.54 1.47 36999.77 18496.15 2.00
114630.00 35540.00 3.23 37077.56 9908.26 3.74 6946.04 4333.31 1.60 41563.84 19843.56 2.09
138396.00 65466.00 2.11 36105.39 32907.63 1.10 8418.72 5380.43 1.56 47862.76 33492.76 1.43
149466.00 68280.00 2.19 50885.49 24577.36 2.07 7984.43 12395.28 0.64 50956.35 35106.54 1.45
171879.00 81381.00 2.11 47857.60 30120.06 1.59 13742.18 4572.27 3.01 39866.38 37983.12 1.05
194089.00 88230.00 2.20 41964.64 28343.77 1.48 16776.61 5741.52 2.92 51060.14 49078.24 1.04
284231.00 110392.00 2.57 49314.30 36028.66 1.37 16544.23 5544.97 2.98 51529.99 32482.34 1.59
364518.00 132313.00 2.75 47425.03 45326.13 1.05 14651.46 5082.38 2.88 49181.48 27997.46 1.76
438852.00 154421.00 2.84 32710.29 48331.34 0.68 8777.71 2699.34 3.25 49181.48 28068.59 1.75
459239.00 141503.00 3.25 48828.86 60149.60 0.81 8525.64 2431.73 3.51 58676.62 40769.69 1.44

304
SUNDARAM CLYTON TATA MOTORS TVS MOTORS VST TILLERS
C.A C.L ratio C.A C.L ratio C.A C.L ratio C.A C.L ratio
33017.94 4519.73 7.31 34005.20 14609.16 2.33 1731.50 667.21 2.60 14258.45 4451.36 3.20
46725.43 11796.81 3.96 36714.82 13032.53 2.82 1920.07 885.19 2.17 19435.62 5989.06 3.25
524.47 494.33 1.06 35204.74 22138.17 1.59 2036.39 1318.88 1.54 25838.00 9778.91 2.64
505.21 461.37 1.10 31976.23 21104.61 1.52 2071.70 1254.17 1.65 24430.88 6819.76 3.58
538.73 470.71 1.14 28138.78 18797.53 1.50 2390.91 1529.16 1.56 34570.85 12497.63 2.77
560.13 457.71 1.22 28119.15 20370.63 1.38 3185.21 2183.38 1.46 33534.72 6973.62 4.81
676.76 464.01 1.46 15323.25 18701.74 0.82 3201.63 2315.88 1.38 40358.69 7006.63 5.76
737.99 485.99 1.52 16283.22 21647.80 0.75 3858.52 2851.08 1.35 48174.39 8324.28 5.79
1093.95 828.74 1.32 18461.35 24218.95 0.76 4653.24 3756.27 1.24 57084.61 14348.48 3.98
972.15 628.93 1.55 17565.40 22940.81 0.77 5532.82 4041.68 1.37 50780.62 10527.78 4.82

305