Maruti - Suzuki - FP 19 10 22

A Study on Ratio Analysis of Maruti Suzuki India
INDEX
s.no TOPIC PAGE

From to
Chapter -1 02 10
1 a) Introduction
11 17
2 Chapter-2
Profile
3 Mission and vision 18 19
4 Maruti Suzuki Products and Services
Chapter-3: Methodology 20 21
3 a) Objectives of the study
b) Data type
c) Scope
d) Need
e) limitations of the study
Chapter-4 22 44
4 Analysis
Chapter-5 45
5 Findings
Conclusions
1
Chapter-6 46 50
6 Bibliography
MARUTI SUZUKI
Introduction
Accounting ratios are a crucial tool that researchers use to analyses financial
statements. Business decision makers utilize financial statements to get idea of the
company's financial situation and can make decisions more effectively by employing
these analyses.
To create an accounting operating statement, there are several different techniques.

Some of them include comparative statements and assertions about common sizes.
Trend analysis, cash flow analysis, and accounting ratios
Financial statements are the essential, legally required annual reports that a company's
management uses to tell financial information to its owners and other outside parties
like investors, tax authorities, the government, employees, etc.
Cash flow statement:
SR Engineering College, Warangal

The statement of money flows each one among the three key financial statements that
report the cash generated and spent during a particular period of your time. The
statement of money flows acts as a bridge between the operating statement and record
by showing how many moved in and out of the business.
A cash flow statement is a financial report that contains all of company's cash inflows
and outflows.
• Profit and loss account: a company's revenue fewer operating expenses such
as rent, cost of goods, freight, and payroll Each line item on a P&L statement
reveals information about the company's cash flow, including where the
money is coming from and how it is being used.
• Balance sheet: Using a balance sheet, you can see the assets and liabilities
that a business has. The sum of money invested by shareholders stated under
shareholders' equity is also reported on a balance sheet.
The balance sheet is an organization's financial statement. The balance sheet includes
items such as
1) assets,
2) liabilities,
3) equity capital, 4) debt, etc.
Liabilities are on the right side of the balance sheet, and assets are on the left. Only
when both columns balance against one another, or when the heads of obligations and
assets are equal, is a balance sheet considered genuine.
A balance sheet is often calculated after each quarter, six months, or year and is
essentially a snapshot of the financial state of an organization at a specific moment.
• Assets and liabilities are two important components of a balance sheet.

• Assets are the resources that a firm holds, such as its inventory, goodwill,
buildings, and machinery.
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• All company's assets are separated into two categories: current assets and
fixed assets.
• Liabilities are debts, dividends, and credits that a business must pay to parties
outside of the organization and that are typically owed by the business.
• Liabilities can be divided into two categories: current liabilities and fixed
liabilities.
Format of balance sheet
Table 1 shows the format of a Balance sheet

ASSETS
LIABILITES
• Current assets
• Current
liabilities
• Accounts
receivables
• Accounts
Amount payable Amount
• Cash
• Noncurrent
• Tax payable
assets
• Noncurrent
• Equipment
liabilities
• Buildings
• Capital stock
Profit and loss account:
Profit and loss account displays the annual net profit or net loss. of an organization
profit and loss account is a one of the major components of financial account there
will two sides for the profit and loss account one is debit side another one is credit
side
Debit side:
The debit side of profit and loss account contains

• Gross loss
• All the indirect expenses
Credit side:
The credit side of the profit and loss account contains
• Gross profit
• All indirect expenses
Table 2 shows the profit and loss contains
Particulars Amount Particulars Amount
To opening of the
By sales
stock
To the purchases By closing the

stock
To the wages
By commission
To the insurance
By net loss
Cash flow statement:
The Cash flow statement is summarized financial statements of cash equivalent

coming and leaving the organization by using a company’s cash flow statement we
can analyse how well an organization managing its cash position.
All the cash and cash equivalent of an accounting periods are added and deducted to
calculated net cash flows.
Cash flow statement useful in evaluating company’s cash position to pay its
obligations and cash flow statement tells overall organization’s financial health.
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Table 3 shows the cash flow statement

Cash flows from operations Amount
Net earnings
Addition to cash
Depreciations
Increase in account payable
Subtraction from cash
These 3 can effectively use to determine the financial health of any organization
A ratio explains the relationship between two or more variables and it can be
expressed as fractions
Accounting ratios are also called as financial ratios and it explains the magnitude
between two variables or number from a company’s financial statement
There are several types of ratios are there some of the major types,
• Liquidity Asset Ratio

• Critical Ratio
• Profit margin Ratio
• Activity Ratio
Significance of Ratio Analysis:
Decision making

• Financial experts and investors usually uses the ratio analysis in order to judge
the company’s financial position.
• Ratio analysis simplify the financial data of the organization
• By using ratio analysis one can find out the problematic areas.
• Ratio analysis are easy to understand as compared to any other financial
statement analysis.
Limitations in ratio analysis:
• Ratios are mostly calculated by using historical cost and neglect the price
changes
• Ratios completely ignored the fact of qualitative data
• There should be a proper relationship between the variable
• The firm may change some financial data in order to make improve ratios.
Types of Ratios:
Liquidity ratios:
The ratios, that are used by research to understand the organization’s liquidity status
are called liquidity ratios
Simply and these ratios tells weather a company can meet its financial obligations are
not
• Current ratios
• Quick ratios Current ratio:
Current ratio is one of the liquidity ratios that is used to analyzes the firms ability to
pay its short term debt i.e. short term obligations.
Formula for current ratio:
Current ratio = current assets/ Current liabilities
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Quick ratio:
Quick ratio is used in understanding firm’s ability to fulfil its current liabilities
without using or selling its inventory.
The high quick ratio denotes the good financial health and liquidity.
Formula for quick ratio:
Quick ratio = current assets – inventory/ Current liabilities Solvency
Ratios:
The long-term debt providers of a company always use the solvency ratios to check or
calculate the ability of a company to pay its debt.
It tells how well the assets can cover the future payments of the Organization.
High debt ratio indicates good business economic health of organization.
There are several solvency ratios can be seen some of the important solvency ratios
are
• Debt to equity ratio

• Debt to asset ratio
Debt to equity ratio:

Debt equity shows the contribution of lenders and propagators in financing company
assets.
Low debt to equity ratio indicates that company is using low debt to finance its assets
vice versa
Debt Equity Ratio Formula
Debt to equity ratio = Total debt / Shareholder’s equity
Debt to asset ratio:
Debt to asset ratio indicate the amount of total company assets are only financed
through debt i.e. barrowings.
Low debt to asset ratio is mostly preferred as high debt to ratio indicate high
leverage.
Debt Ratio
Debt ratio = Total debt/ Total fixed assets Profitability
Ratios:
Profitability ratios are used to assess a company’s profit generating strength
High profitability ratios indicate the high profit earning capacity of the company
where as low ratio indicates firms’ inability
• Operating profit margin ratio

• Net profit ratio
Operating profit margin ratio:
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Operating profit margin ratio is one of the profitability or performance ratio which
explains the company’s profit percentage which is generated through its operations
Formula for operating profit margin ratio:
Net profit ratio:
Net profit ratio is nothing but how much net profit is generated as its net sales. Net
profit ratio is calculated by using net profit and sales of the company Formula
for net profit ratio:
Net profit ratio = Net income/ Sales
Efficiency ratio:
Efficiency ratios are used to assess how well a company uses its resources to create
revenue.
It reveals the soundness of the company's credit policy and the amount of investment
required. There are two primary efficiency ratios:
• Asset turnover ratio

• Net working capital ratio Asset turnover ratio:
Asset turnover ratio explains firms’ ability to generate revenue through its assets.
Asset turnover ratio is calculated by using the sales and total assets of the company.
Formula for Asset turnover ratio:
Asset turnover ratio = Sales/ Total Assets Net
working capital ratio:

Networking capital ratio indicates the availability of short-term asset to meet short
term debt
Formula for networking capital ratio:
Net working capital = Sales/ Working Capital
Working capital = current assets-current liabilities
COMPANY PROFILE
The largest manufacturer of passenger cars in India is Maruti Suzuki India Limited
(MSIL), a division of Suzuki Motor Corporation of Japan. Maruti Suzuki is credited
with starting the nation's automotive revolution. The company operates an automobile
manufacturing and sales operation in India. Maruti Suzuki had a modest beginning
with the classic Maruti 800 automobile, but today it boasts a wide range of 16 car
models with more than 150 variants. The model lineup of Maruti Suzuki ranges from
affordable little automobiles like the Alto 800 and Alto K10 to the opulent Ciaz. The
facilitation of used car sales, fleet management, and auto financing are further
activities. The company has modern R&D facilities in Rohtak, Haryana, as well as
manufacturing facilities in the Haryana cities of Gurgaon and Manesar.
The Company, originally known as Maruti Udyog Limited, was established in

February 1981 as a joint venture by the governments of India and Japan's Suzuki
Motor Corporation. Suzuki Motor Corporation now holds 56.2% of the ownership.
Shares of the company are traded on the Bombay Stock Exchange and the National
Stock Exchange (NSE) (BSE).
Indian manufacturer Maruti Suzuki India Limited, formerly Maruti Udyog Limited,
has own head office Delhi. It is a subsidiary of Suzuki Motor Corporation, a Japanese
manufacturer.
With more about 50% of the domestic auto market, Maruti Suzuki India Ltd
(previously Maruti Udyog Ltd) is India's largest passenger car manufacturer. From the
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affordable Maruti Alto to the chic hatchbacks Ritz, A-star, Swift, Wagon R, and
Estillo, as well as the sedans DZire and Sx4 and the sport utility vehicle Grand Vitara,
the business offers a wide range of automobiles. The business is a division of the
Japanese Suzuki Motor Corporation. The Japanese auto giant owned 56.21% of
Maruti Suzuki as of December 31, 2017.
The corporation manufactures, purchases, and sells autos and their replacement parts
(automobiles). The company also facilitates the selling of used cars and offers fleet
management and auto financing as additional services. They have four plants, three of
which are in Gurgaon, Haryana's Palam Gurgaon Road, and one of which is in the
same city's Manesar Industrial Town. Maruti Insurance Business Agency Ltd, Maruti
Insurance Distribution Services Ltd, Maruti Insurance Agency Solutions Ltd, Maruti
Insurance Agency Network Ltd, Maruti Insurance Agency Services Ltd, Maruti
Insurance Agency Services Ltd, Maruti Insurance Agency Logistics Ltd, True Value
Solutions Ltd, Maruti Insurance Broker Ltd, and J Impex (Delhi) Pvt Ltd are the nine
subsidiary companies that make up the company.
On February 24, 1981, Maruti Suzuki India Ltd. was founded. through Maruti Udyog
Ltd. To create a people's car for India's middle class, the company was formed as a
govt venture with Suzuki as a junior partner. The product line of the company has
evolved over time, ownership has changed, and the customer base has changed. The
business and Suzuki Motor Corporation, Japan, inked a concession and joint venture
agreement on October 2, 1982. The company started making and releasing a new the
Maruti 800 in 1983.
They debuted the Maruti Omni in 1984, and the Maruti Gypsy hit the market the
following year. The company entered the overseas market in 1987 by sending its first
shipment of 500 automobiles to Hungary. The business introduced the Sedan, India's
first three-box vehicle, in 1990. Suzuki Motor Corporation, Japan raised its ownership
of the business to 50% in 1992. They debuted the Maruti Zen in 1993, and the Maruti
Esteem hit the market the following year.
The business started their second factory in 1995. They established Maruti Service
Master as a prototype facility in India to handle after-sales services in 1997. The third

factory, which included additional press, paint, and assembly shops, went into service
in the year 1999. The business introduced the Maruti Alto to the public in 2000.
Suzuki Motor Corporation extended their ownership of the business to 54.2% in 2002.
The company launched 10 financial companies in Mumbai in January 2002 (8 + 2

JVs). They also discovered a brand-new industry for the sale, purchase, and trading of
used cars in India, called Maruti True Value. The first global strategic model from
Suzuki Motor Corporation, called "the SWIFT," was introduced by the firm in India
in 2005. They introduced the WaganR Duo with LPG and the New Zen Estillo in
2006.
The company started operating in the new vehicle plant and the diesel engine facility
in Manesar, Haryana, in the 2006–2007 fiscal year. They opened a new Driving
Training and Research Institute (1DTR) in South Delhi's Sarai Kale Khan in
November 2006 as part of a joint venture with the Delhi Government.
The firm and the Adani group struck a contract in 2007–2008 for the shipment of
200,000 units per year via the Gujarati port of Mundra. Throughout the year, they
debuted Swift Diesel and SX4- Luxury Sedan with the tagline "MEN ARE BACK." A
beautiful, powerful, 5-seater MUV, the new Grand Vitara was introduced by the
manufacturer in July 2007. With effect from September 17, 2007, the business
changed its name from Maruti Udyog Ltd to Maruti Suzuki India Ltd.
In the course of the year, the business established Magneti Marelli Powertrain India
Pvt Ltd in a joint venture with Magneti Marelli Powertrain SpA to produce electric
control units. Additionally, they established FMI Automotive Components Ltd in a
joint venture with Futaba Industrial Co Ltd to produce components for exhaust
systems. In order to provide simple, transparent, and hassle-free car financing to its
consumers, particularly in semi-urban and rural areas, the company entered into an
agreement with Shriram City Union Finance Ltd, a subsidiary of the Chennai-based
Shriram Group. The two businesses came up with the deal as a combined effort to
offer customers in Tier II and Tier III cities around the nation affordable car
financing.
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The firm introduced a new A2 class vehicle in 2008-2009. It was known as the A-star
in India and the new Alto in Europe. They increased output to a historic 1 million
automobiles. The business introduced the Maruti 800 Duo, a dual fuel (LPG and
gasoline) type car, in June 2008. The new Ritz K12M engine was unveiled by the
business in April 2009 at the Gurgaon plant.
The firm increased the production capacity of its next-generation K-series engine
factory to more than 500,000 units annually in 2009–2010. At Manesar, construction
on a second facility with an annual capacity of 250,000 automobiles has begun. The
Ritz, the company's fifth global strategy model, was released. Additionally, the Eeco,
a roomy multipurpose van, and the brand-new WagonR with a K-series engine were
released.
In 2010–2011, the business introduced updated WagonR and Alto models powered by
the new K-series engines. Super Turbo Diesel engines were available with the SX4.
India's first sports luxury sedan, the Suzuki Kizashi, was introduced by the company.
It comes equipped with best-in-class features and a 2.4 litre engine. For five of its
models—the Alto, WagonR, Eeco, Estilo, and SX4—the business introduced factory-
fitted CNG variants using its own i-GPI (Integrated Gas Port Injection) Technology.
The business began construction in 2011–12 to commission a second diesel engine

facility in Gurgaon with a 300,000 annual capacity. The Ertiga Life Utility Vehicle
was launched by the Company at the 2012 Delhi Auto Expo. The company's debut
into the UV market with Ertiga's global premiere will assist to further solidify its
position as the industry leader. The XA-Alpha, a concept compact sUV, was also
displayed by the business.
The business began construction on the Gujarat site in 2012–2013. Suzuki Japan made
the decision that India would now be in charge of the export markets in Africa, the
Middle East, and its neighbouring nations during this time. With Japan's assistance,
the corporation must make sure there are sufficient sales and marketing arrangements
in these nations. Additionally, it must choose the goods that will be produced for these
markets and, if necessary, set up assembly facilities abroad. The expansion of its
exports will be significantly aided by this choice.

Maruti introduced a popular sedan, the Ciaz model, in 2014–2015. The S-Cross
invents a brand-new market niche by fusing the luxury and comfort of a sedan with
the performance and aesthetics of a sUV. Both of these devices have been improved
with several high-end features and raised performance standards. The foundation
stone for the Gujarat factory was set in January of this year by the honourable Gujarat
Chief Minister.
Two new products the company launched in 2015–16, the Baleno and the Brezza,
outperformed demand projections, and both vehicles had a waiting list of 6-7 months.
On October 4, 2016, Maruti Suzuki revealed that the premium hatchback Baleno had
sold one lakh domestic units overall. The debut of a revised version of Maruti
Suzuki's small car, the Alto 800, with a more appealing front appearance, redesigned
interiors, brilliant colours, improved fuel efficiency, and additional amenities was
announced on May 18, 2016.
On May 27, 2016, Maruti Suzuki made the proactive and voluntary decision to recall
75,419 Baleno vehicles (including gasoline and diesel versions) built between August
3, 2015, and May 17, 2016, in order to upgrade the airbag controller software. A
defective fuel filter will be inspected and replaced in 15,995 Baleno diesel vehicles
produced between 3 August 2015 and 22 March 2016. 17,231 units of the Baleno
automobiles up for recall are exports. Additionally, 1,961 DZire diesel vehicles (just
the AGS type) will receive attention for an inspection and fuel filter replacement.
Maruti Suzuki declared on May 27, 2016, that it had started exporting its Light
Commercial Vehicle Super Carry to Tanzania and South Africa. In that moment,
According to the corporation, it also has future intentions to export the car to SAARC
countries.
On July 6, 2016, Maruti Suzuki revealed that sales of its well-known premium mid-
size sedan Ciaz had surpassed 100,000 in the domestic market. The vehicle debuted in
October 2014. On July 28, 2016, Maruti Suzuki declared that the NEXA brand's high-
end retail showroom has successfully operated for a full year. At the time, the
business stated that by 2020, NEXA will account for 15% of its sales.
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With effect from August 1, 2016, Maruti Suzuki announced price increases for a few
models ranging from Rs 1,500 to Rs 5,000 (Ex-showroom Delhi). Additionally, a
price hike of up to Rs 20,000 for the Vitara Brezza and up to Rs 10,000 for the Baleno
was announced. The corporation justified the price increase to elements like segment-
specific demand, fluctuations in foreign exchange rates, and corporate strategic goals.
On August 12, 2016, Maruti Suzuki declared that since it began offering driving
instruction in 2000, the total number of students enrolled in its different driving
training facilities has reached a record 3 million.
Swift Deca, a limited-edition version of Maruti Suzuki's most popular hatchback

Swift, was announced for release on August 30, 2016. The Super Carry, Maruti
Suzuki's first light commercial vehicle (LCV), was introduced to the domestic market
on September 1st, 2016. The firm has contributed roughly Rs 300 crore to the Super
Carry's development.
On an announcement made on September 15, 2016, Maruti Suzuki stated that it had
inked a Memorandum of Understanding (MoU) with Uber India to train over 30,000
individuals and Uber partner drivers over the course of three years in safe driving.
Maruti Suzuki declared that it had reached cumulative shipments of 15 lakh

automobiles on September 23, 2016. Over a hundred nations, including those in
Europe, Latin America, and Africa, have imported these automobiles. Maruti Suzuki
revealed on November 15, 2016, that Mehsana, Gujarat would get a first-of-its-kind
Industrial Training Institute.
On November 25, 2016, Maruti Suzuki announced the release of a limited-edition

Wagon R Felicity, a compact car with a number of innovative features. In order to
train potential Ola driver-partners, Maruti Suzuki India and the online taxi aggregator
Ola signed a Memorandum of Understanding (MoU) on December 9th. According to
the business, its collaboration with Ola would open up business prospects for
ambitious Ola drivers and partners.
IGNIS, Maruti Suzuki India's premium urban small car for millennials, was officially
unveiled on January 13, 2017. Over 950 crore rupees have been invested by the
business and its suppliers in the creation of IGNIS. Localization is 98.5% in IGNIS.

On January 27, 2017, Maruti Suzuki announced the release of the WagonR's new
VXi+ model, which comes with a host of new features like projector headlamps, a
fashionable front grill, alloy wheels, side skirts, dual airbags, and an optional
electronic braking force distribution system. With effect from January 27, 2017,
Maruti Suzuki announced a price rise for all models, ranging from Rs 1,500 to Rs
8,014, as a result of rising material, transportation, and administrative costs.
Maruti Suzuki opened its 200th NEXA premium retail dealership in Hyderabad on
January 30, 2017. The business claimed at the time that NEXA was now available in
121 cities and had sold more than 1.85 lakh cars since its beginning. On February 15,
2017, Maruti Suzuki announced the release of a limited edition of the Ertiga, a small,
versatile vehicle.
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MARUTI SUZUKI VISION AND MISSION
OUR VISION
Visions of any company are those values on which company works. As the MUL is
started by Governmental initiatives it tends to be more consumer oriented and hence
cost effective, but on the other hand Suzuki's participation ensures not only need of
the profit, but of the need of maximum profit.
OUR MISSION
Maruti Suzuki's mission statement says, "To be The Leader in the Indian Automobile
Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India."
BOARD OF DIRECTORS
Mr. R C Bhargava (Chairman)
Mr. Kenichiro Toyofuku (Director)
Mr. O Suzuki (Director)
Mr. Kinji Saito (Director)

Mr. T Suzuki (Director)
Mr. R P Singh (Independent Director)
Mr. D S Brar (Independent Director)
Ms. Lira Goswami (Independent Director)
Mr. Maheswar Sahu (Independent Director)
Mr. Shigetoshi Torii (Joint Managing Director)
Mr. Hisashi Takeuchi (Joint Managing Director)
Mr. Kenichi Ayukawa (Managing Director & CEO)
Mr. Ajay Seth (Chief Financial officer)
Mr. Sanjeev Grover (Vice President &Co. Secretary)
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MARUTI SUZUKI PRODUCTS AND SERVICES
PRODUCTS
 Omni
 Gypsy E
 Gypsy King
 Zen
 Esteem
 Baleno
 Wagon R
 Maruti Eeco
 Alto
 Celerio
 Ciaz
 Ertiga
 S-Cross
 Dzire
 Vitara Brezza
 Ignis
 XL6
 S-Presso
SERVICES
 Maruti Suzuki has 3,792 service stations across 1,861 cities throughout India.
 Service is a major revenue generator of the company.
 Most of the service stations are managed on franchise basis, where Maruti
Suzuki trains the local staff.

 The Express Service stations exist, sending across their repair man to the
vehicle if it is away from a normal service center.
History:
The 970 cc, three-box Maruti 1000 was India's first modern sedan when it was
debuted in 1989. Indigenization accounted for 65 percent of all automotive parts by
1991. Suzuki extended its ownership of Maruti to 50% following the liberalization of
the Indian economy in 1991, turning the company into a 50-50 joint venture with the
government of India as the other stakeholder.
Maruti was the first automobile manufacturer in India to open a call center for internal
and customer services in 2000. Released was the newest Alto model. Maruti True
Value, a company that buys and sells secondhand cars, was established in 2001. The
same year, in October, the Maruti Versa was introduced. Esteem Diesel was first
made available in 2002. Maruti Insurance Distributor Services and Maruti Insurance
Brokers Limited are two further new subsidiaries that have been established. The
Suzuki Motor Corporation raised their ownership of Maruti to 54.2%.
Suzuki and Maruti established a second joint venture in 2006 called "Maruti Suzuki
Automobiles India" with the goal of constructing two new manufacturing facilities:
one for cars and one for engines. With several new models satisfying the updated
Bharat Stage III emission criteria, cleaner vehicles were also made available. Maruti
Suzuki sold its 10 millionth car in India in February 2012. [13] It held a market share
of over 45% in July 2014. The company produced the Swift Dzire, its fifteen
millionth vehicle, in India in May 2015.
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MOTILAL OSWAL:
• In 1987, Motilal Oswal and Raamdeo Agarwal founded Motilal Oswal

Financial Services Ltd (MOFSL) as a brokerage firm.
• In 1987, Motilal Oswal and Raamdeo Agarwal founded Motilal Oswal
Financial Services Ltd (MOFSL) as a brokerage firm.
• In 2005, the business started working in investment banking. In 2006, it
launched a private equity fund.
Honoré and distinctions:
• Motilal Oswal wins GOLD for marketing effectiveness at the Global ACEF
customer engagement awards (Awarded for Think Equity). Mr. Motilal Oswal,
Chairman & MD is recognized as Outstanding Institution Builder of the Year
in the AIMA Managing India Awards. Consider the Motilal Oswal TV
advertisement, which garnered three ABBY Awards for Creative Excellence.
• At the 2010 CNBC TV18 Financial Advisor Awards, Motilal Oswal received
the Best Performing Equity Broker Award.

Research Methodology:
This research is analytical research and conduct by using the company financial data
available in company’s website.
Mathematical tools are used to examines the financial statement and interpret.
Formulation of research problem
As we understand today's market is customer oriented. Lacking consumer satisfaction,

a product can't be sustained on the market. The brand awareness as well as consumer
satisfaction is interring associated. There's a possibility for consumer dis-satisfaction
as a reason behind lack of brand recognition. Since the expectation of his and brand
selection did not match. Therefore, a customer is able to get hundred % satisfaction by
hundred % brand awareness. So, the study of mine is based on if the consumers
purchasing the item together with the brand awareness.
Nature of the study
In this particular study the researcher has adopted descriptive study mostly influenced
by main information. The study is done as survey technique. The study is founded on
the customer’s effect.
Research Design.
Analysis style is the specification of procedures and strategies for getting the info
needed in order to structure and also to resolve issues. The study layout adopted here's
exploratory. It's based on the primary information collected. Exploratory investigation
remains o domain elastic therefore a number of different information of an issue
might be considered when they develop as well as reach the notice of the researcher.
The researcher attempted to cover the different areas which a person goes dis
satisfied. The researcher going direct throughout the buyers view. The researcher
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attempted to discover about customers opinion regarding Maruti Suzuki and the
things they wish even more from Maruti Suzuki. The study touching all aspects of
customers brand recognition.

Source of data
a) Primary details: Primary details for this particular analysis is founded on the
information collected from the sample public by using questionnaire. Data was
collected with the aid of proper debate with the respondents.
b) Secondary details: Secondary data necessary for the study had been
collected via different secondary sources. This consist of library references,
magazines, journals, prior studies as well as sites.
Time period of the study
Period of the analysis was forty-five days
Tools used for analysis
. Dinner table.
. Bar diagram.
. Pie chart.
. Graph.
. Ranking Method.
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Data type:
Only secondary data is taken from the website of company and several other websites.
Secondary data is taken from annual reports of the company from 2016 to 2020. The
other important information is extracted from several sources like,
• Books
• Company website
• Financial data websites
Objectives of study:
• To determine financial position of company

• To simplify the accounting /financial information of a company
• To understand the Liquidity position of company
• To understand and evaluate operational efficiency.
• To evaluate the debt ratio of the company.
Study scope:
This study under taken only 5 years data only and data is only a secondary data which
is collected from several sources.
Need of the study:
• This study under taken the financial performance of the Maruti Suzuki India.
• This study helpful in understanding the company’s financial status.
Limitations:
• Only secondary data is taken into consideration

• Only five years data from 2016 to 2020 is taken into consideration • Other
financial information and circumstances are not taken in to account
• The project has time constrain of 45 days.

DATA ANALYSIS
Liquidity ratios:
Liquidity ratios explains how company is using its cash and cash equivalents. There
are basically several categories of liquidity ratios are there, two of them are current
ratio and quick ratio
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Current ratio is the relationship between current assets and current liabilities.
Formula for Current ratio:
Current ratio = Current Asset / Current Liability
Table 4 shows the

S.no Year Current asset Current liability
1 2021 5372 13351
2 2020 5823 16036
3 2019 4699 17552
4 2018 4489.80 13914.70
5 2017 4506.70 11603.50
Calculation of current ratio:
Current ratio 2021 = 5372/13351 = 0.40
Current ratio2020 = 5823/16036 = 0.36
Current ratio 2019 = 4699/17552 = 0.27
Current ratios 2018 = 4489.80/13914.70 = 0.32
Current ratio 2017 = 4506.70/11603.50 = 0.388

Fig.1 shows the Quick
ratio:
Quick ratio is determined by using current asset, inventory, current liability
Formula for quick ratio:
Quick ratio = current asset – inventory/ Current liability
Table 5 shows
Current
S no Year Current asset Inventory
liability
1 2021 5372 3214.90 13351
2 2020 5823 3325.70 16036
3 2019 4699 3160.80 17552
4 2018 4489.80 3262.20 13914.70
5 2017 4506.70 3132.10 11603.50
Calculation of quick ratio:
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Quick ratio = current asset- inventory/ Current liability
Quick ratio2021 = 5372-3213.90/11305 = 0.161
Quick ratio 2020 = 5825-3322.60/14160 = 0.155
Quick ratio 2019 = 4699-3160.20/17552 = 0.08
Quick ratio 2018 = 4699-3160.20/13914.70 = 0.08
Quick ratio 2017 = 4506.70-313260/11603.50 = 0.188
Fig. 2 Shows the
Table 6 shows
Sno Year Current ratio Quick ratio
1 2021 0.40 0.161
2 2020 0.36 0.155
3 2019 0.27 0.08
4 2018 0.32 0.088
5 2017 0.388 0.118

Solvency ratio:
Solvency ratio is most appropriate measure used by financial experts to determine the
firm’s ability to pay its debt obligations.
There is different type of solvency ratios are there some of them are
Debt to asset ratio:
Debt to asset ratio is relationship between the total debt and total asset of a company.
Formula for calculating debt to asset ratio:

Debt to asset ratio = Total debt / Total Asset
Calculating debt to asset ratio
Debt to asset ratio2021 = 111.70/49543.90 = 0.002
Debt to asset ratio 2020 = 157.60/47267.30 = 0.0033
Debt to asset ratio2018 = 483.60/37574.10 = 0.012
31
Fig.3 shows
Debt to equity:
Debt equity ratio determines the relationship between companies’ debt and
shareholders’ equity.
Formula for calculation of debt equity ratio:
Debt equity ratio = Total debt / Total shareholders’ equity
Table 7 shows
Sno Year Total debt Shareholders’ equity
1 2021 111.70 151.00
2 2020 157.60 151.00
3 2019 120.80 151.00
4 2018 483.60 151.00
5 2017 77.40 151.00
Debt equity ratio 2021 = 117.70/151.00 = 0.73

Debt equity ratio 2020 = 157.60/151 = 1.043
Debt equity ratio 2019 = 120.80/151 = 0.8
Debt equity ratio2018 = 483.60/151 = 3.20
Debt equity ratio2017 = 72.40/151 = 0.512
Table 8 shows
S. no Year Debt to asset ratio Debt to equity ratio
1 2021 0.002 0.73
2 2020 0.003 1.043
3 2019 0.0028 0.8
4 2018 0.012 0.32
5 2017 0.0025 0.512
Fig.4 Shows
33
Profitability ratio:
Profitability ratios explains the ability of firm to generate profits.
Formula for operating profit margin:
Operating profit margin = operating profit/ Revenue
Table 9 shows
Sno year Operating profit Revenue
1 2021 7312.60 75660
2 2020 11003.20 86068.50
3 2019 12063.40 79809
4 2018 10358.1 68085
5 2017 16405.20 65105.50
Calculation of operating profit margin ratio:
Operating profit margin 2021 = 7312.60/75660 = 0.096
Operating profit margin 2020 = 11003.20/86068.50 =
Operating profit margin2019 = 12063.4 / 79809 = 0.151
Operating profit margin 2018 = 10358.1/ 68085.00
Operating profit margin 2017 = 16405.20/65705.50 = 0.249

Fig. 5 Shows,
Net profit ratio:
Net profit ratio of a company explains what is the net profit is earned as revenue of the
company.
Formula for net profit ratio:
Net profit ratio = Net income/ Revenue
Net profit ratio2021 = 5589/75660 = 0.07
Net profit ratio2020 = 7974/86068 = 0.087
Net profit ratio2019 = 7717/ 79809 = 0.096
Net profit ratio2018 = 7338/68085 = 0.107
Net profit ratio2017 = 5378/65105 = 0.082
35
Fig.6 Shows
Table 10 shows
Sno year Operating ratio Net profit ratio
1 2020 0.096 0.07
2 2019 0.137 0.087
3 2018 0.151 0.980
4 2017 0.15 0.107
5 2016 0.24 0.082
Efficiency ratios:
Asset turnover ratio:
Table 11 shows
Sno Year sales Total assets
1 2021 75600 49543.90
2 2020 86068.50 47267.30
3 2019 79809 42696.30
4 2018 68085 37574
5 2017 65105.50 30707.80

Calculation of asset turnover ratio:
Asset turnover ratio 2021 = 7566.00/495443.90 = 1.5271
Asset turnover ratio2020 = 86068.50/ 47267.30 = 1.821
Asset turnover ratio 2019 = 79809/42696.30 = 1.869
Asset turnover ratio 2018 = 68085/ 37574 = 1.812
Asset turnover ratio 2017 = 65105.50/ 30707 = 2.120
Fig.7 Shows
Net working capital turnover ratio:
Net working capital turnover ratio = Sales/ Working Capital Table 12

shows
sno Year Sales Working capital
37
1 2021 75660 -7979

2 2020 8606.50 -10213
3 2019 79809 -12853
4 2018 68085 -9424.2
5 2017 65105 -7096.8
Calculation of net working capital ratio:
Net working capital ratio2021 = 75660/-7979 = -9.48
Net working capital ratio2020 = 86068.50/-10213 = -8.42
Net working capital ratio2019 = 79809/ -12853 = -6.2
Net working capital ratio2018 = 68085/-942.90 = -7.22
Net working capital ratio2017 = 75660/ -7096.8 = -9.173
Fig.8 Shows

Table 13 shows
sno year Asset turnover Networking capital
ratio ratio
1 2021 1.5271 -9.48

2 2020 1.821 -8.421
3 2019 1.869 -6.209
4 2018 1.812 -7.22
5 2017 2.120 -9.173
39
Findings:
• In 2020 the current ratio of the company is high compared to any other year
• Even though the ratio is good in 2020 it is not the ideal ratio as per the
industry.
• In 2018 the quick ratio is 0.08 is low i.e. the company suffused from paying its
debt.
• In 2019 the debt to equity ratio is increased to 1.043 which indicates in 2019
the company financed its asset from debt more compared to previous years.
• In 2016 the operating profit ratio is high compared all the five years that
means company earned more EBIT.
• In 2018 the net profit ratio is 0.980 which is high among the five years that
means the company earned more profit in 2018
• In 2016 the asset turnover ratio more which means the company earned more
from its assets compared to remaining years
Maruti Suzuki India

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------
Sources Of Funds
Total Share Capital 151.00 151.00 151.00 151.00 151.00
Equity Share Capital 151.00 151.00 151.00 151.00 151.00
Reserves 49262.00 46941.10 42408.40 36924.10 30465.00
Networth 49413.00 47092.10 42559.40 37075.10 30616.00
Secured Loans 111.70 157.60 0.00 0.00 0.00
Unsecured Loans 0.00 0.00 120.80 483.60 77.40
Total Debt 111.70 157.60 120.80 483.60 77.40
Minority Interest 19.20 17.60 16.10 15.40 14.40
Total Liabilities 49543.90 47267.30 42696.30 37574.10 30707.80
Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
Table 14 shows
12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 29,238.10 25,909.20 21,130.00 18,464.40 15,221.30 Less: Accum.
Depreciation 13,422.80 10,471.90 7,741.20 5,153.70 2,691.70
Net Block 15,815.30 15,437.30 13,388.80 13,310.70 12,529.60

WIP 1,344.30 1,606.90 2,132.10 1,252.30 1,006.90
Investments 37,488.00 37,503.60 36,123.10 29,150.60 20,675.80
Inventories 3213.90 3322.60 3160.20 3263.70 3132.60
Sundry Debtors 2129.80 2312.80 1465.40 1202.60 1323.40
Cash and Bank Balance 29.00 187.80 74.00 23.50 50.70
Total Current Assets 5372.70 5823.20 4699.60 4489.80 4506.70
Loans and Advances 3607.40 3597.70 3904.80 3757.10 4006.50
Total CA, Loans &
8980.10 9420.90 8604.40 8246.90 8513.20
Advances
Current Liabilities 13351.50 16036.50 16964.70 13914.70 11603.50
Provisions 732.30 664.90 587.40 471.70 414.20

Total CL & Provisions 14083.80 16701.40 17552.10 14386.40 12017.70
Net Current Assets -5103.70 -7280.50 -8947.70 -6139.50 -3504.50
Total Assets 49543.90 47267.30 42696.30 37574.10 30707.80
Contingent Liabilities 11232.80 11948.60 10455.20 9828.00 9516.60

Value of book in Rupees 1635.76 1558.93 1408.88 1227.33 1013.51
41
Maruti Suzuki India
Consolidated Profit & Loss ------------------- in Rs. Cr. -------------------

account
Table 15 shows
Income
Sales Turnover 75,660.00 86,068.50 82,041.10 77,316.40 65,105.50
Excise Duty 0.00 0.00 2,231.70 9,231.40 0.00
Net Sales 75,660.00 86,068.50 79,809.40 68,085.00 65,105.50
Other Income 3,282.60 2,533.20 2,032.60 2,279.60 1,474.40
Stock Adjustments 238.70 -211.60 -40.80 379.30 -4.80
Total Income 79,181.30 88,390.10 81,801.20 70,743.90 66,575.10
Expenditure
Raw Materials 53,572.80 60,261.60 55,181.50 47,345.60 38,915.20
Power & Fuel Cost 699.50 863.30 673.40 518.60 694.10
Employee Cost 3,416.20 3,285.00 2,863.40 2,360.30 2,000.30
Selling and Admin Expenses 670.30 733.80 868.60 832.40 726.50
Miscellaneous Expenses 10,227.30 9,710.00 8,118.30 7,049.30 6,359.40
Total Expenses 68,586.10 74,853.70 67,705.20 58,106.20 48,695.50
March '20 March '19 March '18 March '17 March '16
12 moths 12 moths 12 moths 12 moths 12 moths
7312.60 11003.20 12063.40 10358.10 16405.20
OPt

PBIT 10595.20 13536.40 14096.00 12637.70 17879.60

Interest 134.20 75.90 345.80 89.40 81.70
PBDT 10461.00 13460.50 13,750.20 12,548.30 17,797.90
Depr 3,528.40 3,020.80 2,759.80 2,603.90 2,821.80
PBTx 6,932.60 10,439.70 10,990.40 9,944.40 14,976.10
Tax 1,425.20 2,973.20 3,286.20 2,616.20 2,087.50

Net Profit 5,557.60 7,493.40 7,716.70 7,337.10 5,378.30
Interest of Minority 0.00 0.00 0.00 0.00 1.10
P/L Of Associates
Net profit/los s Total
Value Addition scrip
dividend Dividend
Distribution Tax
Per share data (annualized)
Shares issued
Earnings Per Share (Rs)
Book Value (Rs)
-118.40 -155.70 -163.30 -172.80 -118.90

5,677.60 7,650.60 7,880.70 7,511.00 13,012.60
15,013.30 14,592.10 12,523.70 10,760.60 9,780.30
2,416.60 2,416.60 2,265.60 1,057.30 755.20
496.80 496.80 461.20 215.20 153.80
3,020.80 3,020.80 3,020.80 3,020.80 3,020.80

183.98 248.06 255.45 242.89 178.04
1,635.76 1,558.93 1,408.88 1,227.33 1,013.51
43
Bibliography:
Books:
Online source :
• www.moneycontrol.com
• www.google.com
• www.marutisuzuki.com

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A Study on Ratio Analysis of Maruti Suzuki India

s.no TOPIC PAGE

4 Maruti Suzuki Products and Services

To create an accounting operating statement, there are several different techniques.

Trend analysis, cash flow analysis, and accounting ratios

Cash flow statement:

SR Engineering College, Warangal

• Assets and liabilities are two important components of a balance sheet.

Format of balance sheet

Table 1 shows the format of a Balance sheet

Profit and loss account:

The debit side of profit and loss account contains

SR Engineering College, Warangal

The credit side of the profit and loss account contains

Table 2 shows the profit and loss contains

Particulars Amount Particulars Amount

To the purchases By closing the

Cash flow statement:

The Cash flow statement is summarized financial statements of cash equivalent

Table 3 shows the cash flow statement

Increase in account payable

Subtraction from cash

• Liquidity Asset Ratio

Significance of Ratio Analysis:

SR Engineering College, Warangal

Limitations in ratio analysis:

Formula for current ratio:

Current ratio = current assets/ Current liabilities

Formula for quick ratio:

Quick ratio = current assets – inventory/ Current liabilities Solvency

High debt ratio indicates good business economic health of organization.

• Debt to equity ratio

Debt to equity ratio:

SR Engineering College, Warangal

Debt Equity Ratio Formula

Debt to equity ratio = Total debt / Shareholder’s equity

Debt to asset ratio:

Debt ratio = Total debt/ Total fixed assets Profitability

Profitability ratios are used to assess a company’s profit generating strength

• Operating profit margin ratio

Operating profit margin ratio:

Formula for operating profit margin ratio:

Net profit ratio:

for net profit ratio:

Net profit ratio = Net income/ Sales

• Asset turnover ratio

Formula for Asset turnover ratio:

Asset turnover ratio = Sales/ Total Assets Net

working capital ratio:

SR Engineering College, Warangal

Formula for networking capital ratio:

Net working capital = Sales/ Working Capital

Working capital = current assets-current liabilities

The Company, originally known as Maruti Udyog Limited, was established in

SR Engineering College, Warangal

The company launched 10 financial companies in Mumbai in January 2002 (8 + 2

The business began construction in 2011–12 to commission a second diesel engine

SR Engineering College, Warangal

Swift Deca, a limited-edition version of Maruti Suzuki's most popular hatchback

Maruti Suzuki declared that it had reached cumulative shipments of 15 lakh

On November 25, 2016, Maruti Suzuki announced the release of a limited-edition

SR Engineering College, Warangal