19mba158 Umerabanu

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Financial Performance Analyses
KLE SOCIETY’S
INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, HUBLI
(Affiliated to Karnatak University, Dharwad

& Recognized by AICTE, New Delhi)
A PROJECT REPORT ON
“FINANCIAL PERFORMANCE ANALYSES
ON BAJAJ AUTOMOBILE LTD”
SUBMITTED TO
KARNATAK UNIVERSITY, DHARWAD

Towards Partial Fulfillment of Requirements for the Award of
MASTER OF BUSINESS ADMINISTRATION
DURING THE ACADEMIC YEAR 2019-2020
SUBMITTED BY
UMERABANU.M.D
MBA II SEMESTER
REG. NO: 19MBA158
PRAMOD.S.G
Project guide
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K.L.E Society’s Institute of Management Studies and Research
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ACKNOWLEDGEMENT
It is a matter of great pleasure to acknowledge those personalities who have inspired,

guided and contributed immensely in bringing out this Project Report.
I express my sincere thanks to our Director Dr. P. B. ROODAGI KLES’s IMSR,
Hubli for giving me an opportunity for learning.
I wish to take this opportunity to express my deep sense of gratitude to PRAMOD.S.G
for his valuable guidance in this Endeavour. He has been a constant source of
inspiration. I sincerely thank him for his suggestions and his help in successfully
completing my project report.
I would like to thank to my parents, my teaching and non-teaching faculties, my
friends and all those who have helped me directly or indirectly for the completion of
this project work.
Date: 31/07/2020 UMERABANU.M.D

Place: Hubli MBA II Semester
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DECLARATION
I, UMERABANU.M.D, hereby declare that this project report entitled “Financial

Performance Analyses On Bajaj Automobile Ltd” has been prepared by me
during the year 2019-2020, under the guidance of PRAMOD.S.G, Faculty, KLE‟s
Institute of Management Studies and Research, Hubli. The project is towards partial
fulfillment of requirement for the award of Master of Business Administration Karnatak
University, Dharwad.
I confirm that this report truly represents my work undertaken as a part of my

Summer In-plant Project (SIP) this work is not a replication of work done previously
by any other person. I also confirm that the contents of the report and the views
contained therein have been collected and presented by me.
Date: 31/07/2020
Place: Hubli
Umerabanu.M.D
Roll No: 19MBA158
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INDEX
Sl. No. Content Page No.
1 Executive Summary
6-9
2 Industry Profile
10-24
3 Company Profile
25-31
4 Introduction to Study
32-34
5 Research Methodology
35-38
6 Data Analysis and Interpretation

39-70
7 Findings
71
8 Suggestions
72
9 Conclusion
73
10 Annexure
74-89
11 90
Bibliography
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Executive Summary
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INTRODUCTION:
Bajaj Auto Limited (BAL) was recognized in 1945, firstly launching scooters
and three-wheelers a centre in Indian market. In 1991 its properties of the Indian government
rule on foreign imports, BAL‟s marketing object the development of the Indian two-wheelers
business from scooters to 2 stroke and 4 stroke bikes with a robust stress on BAL while
studying its strategies. Along with the analyses found that BAL moving into developing
markets in instruction to increase sales and found a global footmark. According to market
report also comprises SWOT study of BAL which will help it to express an actual marketing
policy for the next five years. IN adding to SWOT analyses, Bajaj auto ltd latest model Pulsar
DTS-I 220cc.150cc, 180cc & 135 cc and Discover DTS-I 135 cc & 100cc increased growth
suddenly.
Its product quality ( maintenance, mileage & service) better than any other Hero
Honda , TVS motor product . At present time ,Bajaj very good position in two-wheeler
industry because Its change model half yearly, yearly. Its also increase market share. Bajaj
discover 100 makes new record over 10 lakh bike sold in just 15 months.
Project Topic: “A study on Financial Performance Analyses”, of Bajaj Automobiles ltd .
Project Objective:
 To analyze present and future earning capacity and profitability of the BAL .
 To understand the overall financial position of the firm based on analyses.
 To facilitate the assessments of financial stability of the BAL.
Need for study:

 One of the most fundamental facts about the business is that the financial performance
of firm shapes its financial structure. Therefore in order to obtain a favourable
financial structure it is necessary to study the efficiency of the firm.
 Financial analyses is the process of identifying the financial strength and weakness of
the firm properly establishing relationship between the items of the balance sheet
and the profit and loss accounts.
Scope of the study:
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 The scope of study involves the financial analyses of Bajaj Automobile company,
with the help of ratio analyses for 10 years . It covers the financial performance of
company. Financial performance include the aspects like liquidity , profitability
,solvency and proprietory ratios.The study was extended to finance department in
particular and for study confiner to Bajaj Automobile ltd. The financial managers can
use this financial analyses report for evaluating the future performance which will
help in analyzing financial statements and help to apply the required sources of firm
properly for development of the firm.
Research Methodology:
The main aim of the study is to know the financial performance of Bajaj
Automobile Ltd.
Research Design -
The type of study is Descriptive.
a) Secondary data: the major sources of secondary data are company annual
report , company website www.bseindia.com and company balance sheet and
P&L account.
b) Data collection method : The data collection instrument used to obtaining the
desired information is through secondary data available in company websites.
Tools of financial analyses:
1. Ratio analyses
2. Comparative Statement Analyses
Findings:
 As per study of current ratio from 2010 to 2013 there is increase and from 2015
onwards it is fluctuating and presently in 2019 it has decreased.
 Quick ratio in 2010 is highest (3.54%) and presently in it has decreased in 2019
(1.25%).
 Inventory turnover ratio results positive. In 2019(19.49%) as compared to
2018(18.95%)
 Total asset turnover ratio is decreasing year by year.
 Fixed asset turnover ratio is increased in 2019(17.00%) as compared to all previous 9
years.
 Gross profit and net profit ratios are fluctuating year by year.
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 Return on asset is highest in 2011(71.8%) and there after it is continuously

decreasing.
 Return on asset is increased as compared to 2010-2011,but there after it is decreasing.
Suggestions:
From the above studies we can suggest some points to improve profitability of the firm
 The company should increase its current assets and reduce its liabilities such as short
term and long term loans.
 The return on equity is decreased continuously after 2011 , so the firm has to make
more income to have profits and efficiency.
 The return on assets are also continuously decreasing after 2011 , so company has to
make maximum use of their assets to generate more income atleast to cover their
cost of capital.
Conclusion:
The BAJAJ AUTO LTD financial position is not so appreciable because there are
fluctuations in profits and growth compare to previous years.
By analyses of financial statement I conclude that , overall financial performance of the
company is good. But the company should take some valuable measures to increase the
profits i.e generate more income , proper utilization of available resources and attract
shareholders to invest.
The project helped me to understand the functioning of the firm and exposure of the practical
aspects in related to business units.
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INDUSTRY PROFILE:
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What is Automobile Industry?

The Automotive Industry is a term that covers the wide range of companies and
organizations involved in the Design, Development, Manufacturing , Marketing and Selling
of motor vehicles , towed vehicles , motorcycles and mopeds. It one of the worlds most
important economic sectors revenue .
History:
In 1897 , the first car ran an Indian road. Through the 1930s, cars were imports only, and in
small number.
An embryonic automobile industry emerged in India in the 1940s. Hindustan Motors was
launched in 1942 , long time competitor Perimeter in 1944, building Chrysler ,Dodge, and
Fiat products respectively . Mahindra &Mahindra was established by two brothers in 1945,
and began assembly of Jeep CJ_3A utility vehicles. Following independence in 1947 , the
Government of India the private sector launched efforts to create an automotive- component
manufacturing industry to supply to the automobile industry . In 1953, an import substitution
programme was launched and the import of the fully built-up cars began to be restricted .
Of about 1947-1970-
1. The 1949 Hindustan 10 built by Hindustan Motors under license from Morris Motors, UK
2. Mine Protected Vehicle manufactured at the Vehicle Factory Jabalpur of OFB
3. The Hindustan Ambassador dominated India‟s automotive market from the 1960s until the
mid-1980s and was manufactured till 2014
4. Fiat 1100D, built under license by Premier Automobiles later re-christened „Premier
Padmini‟ was Ambassador‟s only true competitors.
The 1952 Tariff Commission:
In 1952 the Government appointed the first Tariff Commission , one of whose purposes was
to come out with a feasibility plan for the indigenization of the Indian automobile industry .
In 1954 , following the Tariff Commission implementations, General Motors, Ford and
Rootes Group , which had asembly -only plants in Mumbai ,decided to move out of India.
1970 to 1983:
However growth was relatively slow in the 1950s and 1960s , due to nationalization and
license raj, which hampered the growth of the Indian private sector.
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1984 to 1992:
1. First generation Maruti 800 launched in 1984
2. Chemical Biological Radiological and Nuclear Reconnaissance Vehicle (CBRN-RV)
manufactured .
Post -1992 liberlisation:

Tata Indica ,launched in1998
The Mahindra Scorpio was launched in 2002
The Maruti Suzuki Dzire and its hatchback version , the Suzuki Swift are the largest selling
cars in recent years in India.
Slow export growth:
Exports were slow to grow .Sales of small numbers of vehicles to tertiary markets and
neighbouring countries began early , and in 1987 Maruti Suzuki shipped 480 cars to
Europe(Hungary).After some growth in the mid-nineties, exports once again began to drop
the out model platforms provided to Indian manufactures by multinationals were not
competitive .This was not last, and today Indian manufactures low-priced cars markets across
the globe.
The automotive industry in India is the fourth largest in the world.
The automobile industry is a key player in global and Indian economy. The global
motor vehicle industry (four wheelers) contributes 5 per cent directly to the total
manufacturing employment, 12.9 per cent to the total manufacturing production value and 8.3
per cent to the total industrial investment. It also contributes US$560 billion to the public
revenue of different countries, in terms of taxes on fuel, circulation, sales and registration.
The annual turnover of the global auto industry is around US$5.09 trillion, which is
equivalent to the sixth largest economy in the world (Organisational Internationale des
Constructeurs d‟Automobiles,2006). In addition, the auto industry is linked with several other
sectors in the economy and hence its indirect contribution is much higher than this. All over
India it has been treated as a leading sector because of its extensive economic linkages.
Indias manufacture of 7.9 million vehicles , including 1.3 million passenger
cars, amounted to 2.4percent and 7 percent respectively, of global production in number. The
auto-components manufacturing sector is the another key player in the Indian automotive
industry.Exports from India in this sector rose from US$1.0 billion in 2003-04 to US$1.8
billion in 2005-06, contributing 1 per cent to the world trade in auto components USD.
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In India, the automobile industry provides direct employment to about 5 lakh

persons. It contributes 4.7 percent to India‟s GDP and 19 percent to India‟s direct revenue .
There are two distinct sets of players in the Indian auto industry : Automobile
component manufacturers and the vehicle manufacturers, which is also referred to as Original
Equipment Manufactures (OEM). While the former set is engaged in manufacturing parts,
components, bodies, and chassis involved in manufacturing , the latter is engaged in
assembling of all these components into an automobile . The Indian automotive component
manufacturing sector consists of 500 firms in the organized sector and around 31000
enterprises in the unorganized sector.
The automobile manufacturing sector, which involves assembling the
automobile components, companies two-wheelers , three-wheelers , four-wheelers
,passengers cars, light commercial vehicles (LCVs), heavy trucks and buses\coaches. In India
, mopeds, scooters, and motorcycles constitute the two-wheeler industry, in the increasing
order of market share. In 2005-06 the Indian auto sector had produced over 7.6 million two
wheelers and 1.3 million passenger cars and utility vehicles . India is global major in the two-
wheeler industry producing motorcycles , scooters and mopeds principally of engine
capacities below 200c.It is the second Largest producer of two-wheelers and 13th largest
producer of passenger cars in the world.
ORGANISED AUTO SECTOR IN INDIA:
While the Original Equipment Manufacturers(OEMs) are the most top
of the auto supply chain, it should be noted that there are few OEMs in India which supply
some components to other OEMs in India or abroad. Most of the Indian OEMs are members
of the Society of Indian Automobiles Manufacturers (SIAM) , while most of the Tier-1
auto component manufacturers are members of the Automobile Component Manufacturers
Association (ACMA) .All of them are organized sector and supply directly to the OEMs in
India and abroad or to Tier-1 players abroad . Tier-2 and Tier-3 auto-component
manufacturers are relatively smaller players .Though some of the Tier-3 players are in the
organized sector, most of them are in the unorganized sector , including some Own Account
Manufacturing Enterprises (OAMEs) that operate with one working owner and his family
members, wherein manufacturing involves use a single machine such as the lathe.
UNORGANISED AUTO SECTOR IN INDIA:

The unorganized sector consists of enterprises that are not
registered under certain sections of the Factories Act.20 In this section , data on the
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unorganized manufacturing sector from the National Sample Survey Organisation (NSSO) is
used . The unorganized auto sector in India has grown on terms of number of enterprises,
employees, output, capital, capital intensity and labour productivity.
Efforts have also been made to promote alternative fuels. For this, the following three
initiatives have been launched:
1. Agreement with the sugar industry on the off-take of ethanol has been made.
2. An action plan has been prepared to grow and produce bio-diesel at fixed price.
3. Hydrogen energy roadmap has been prepared by Ratan Tata. According to this roadmap, 10
lakh hydrogen-fuelled vehicles has been produced by 2010.
Market Size:
Overall domestic automobiles sale increased at 6.71 percent CAGR between FY13-19 with
26.27 million vehicles getting sold in FY19.Domestic automobile production increased at
6.96 per cent CSGR between FY13-19 with 30.92 million vehicles manufactured in the
country in FY19.
In Fy19 , year -on-year growth in domestic sales among all the categories
was recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-
year growth in the sales of three-wheelers.
Automobile exports grew 14.50 per cent year-on-year during FY19, while
during April-December 2019, overall export increased by 3.9 per cent.
Premium motorbike sales in India recorded seven-fold jump in domestic
sales reaching 13,982 units during April-September 2019. The sale of the luxury cars stood
between 15000 to 17000 in first six months of 2019.
Sales of electric two- wheelers are estimated to have crossed 55000 vehicles in
2017-18.
Investments:
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In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few months. The
industry has attracted Foreign Direct Investment (FDI) worth US$ 23.89 billion during the
period April 2000 to December 2019, according to data released by Department for
Promotion of Industry and internal Trade( DPIIT).
Some of the recent/planned investment and developments in automobile sector in India are
as follows:
 In January 2020, Tata AutoComp Systems , the auto-component arm of Tata Group entered
a joint venture will Beijing-based Prestolite Electric to enter the electric vehicle (EV)
components market.
 In December 2019, Force Motors Planned to invest Rs 600 crore (US$ 85.85 million) in order
to develop two new models over the next two years .
 In December 2019 , Morris Garages (MG), a British automobile brand announced plans to
invest Rs 30000 crore (US$ 429.25 million ) more into India .
 Audi India plans to launch nine all new models including Sedans and SUVs along with
futuristic e-tron electric vehicles (EC) by the end of 2019.
 MG Motor India to launch MG ZS EV electric SUV in early 2020 and plans to launch
affordable EV in next 3-4 years .
 BYD Olectra, Tata Motors , Ashok Leyland to supply 5,500 electric buses for different state
departments.
 Premium motorbikes sale in India recorded seven -fold jump in domestic sales reaching
13982 units during April-September 2019. The sale of luxury cars stood between 15000 to
17000 in first six months of 2019.
 In H1 2019, automobile manufacturers invested US$501 million in India‟s auto-tech
companies start-ups ,according to Venture intelligence.
 For self driving and robotic technology s tart-ups Toyota plans to invest US$ 100 million .
 In India ,7 Series face lift launched by BMW and the new X7 SUv has been introduced at Rs
98.90 lakh (US4 o.14 million).
 Ashok Leyland has planned a capital expenditure pf Rs 1,000 crore (US$ 155.20 million) to
launch 20-25 new models across various commercial vehicle categories in India 2018-19.
 Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also
announced to invest US$ 310 million in India.
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 Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20000 units
per year , highest for any luxury car manufacturing in India .
 As of October 2018, Honda Motors Company is planning to setup its third factory in India for
launching hybrid and electric vehicles with the cost of Rs 9200 crore (US$ 1.31 billion ),its
largest investment in India so far.
 In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing
of Rs 100 crore (US$ 14.25 million ) which will increase its annual manufacturing capacity
to 25000 units.
Major Organisations in Automobile Industry:
1. Tata Motors Ltd
o Revenue : Rs 296,917 cr.
o Market : Rs 41,562 Cr.
o Employees: 82,797
o Promoting holding : 38.77%.
Market share:
o Passenger Vehicles :6.3%
o Commercial Vehicles : 45.1%
2. Maruti Suzuki India Ltd
o Revenue : Rs 83,281 Cr
o Market Cap : Rs 199,130 Cr
o Employees : 33,180
o Promoter holding : 56.21%
Market share:
o Passenger Vehicles : 53%
3. Mahindra &Mahindra Ltd
o Market Cap :Rs 70,725 Cr.
o Employees : 42,845
Market share:
o CV :25.3%
o Passenger vehicles : 7.4%
o Tractor : 40.2%
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o UV : 25%
o LCV : 44.5%
4. Hero MotoCorp Ltd
o Market Cap : Rs 57,180 Cr
o Employees : 8,551
o Market share : 36.0%
5. Bajaj Auto Ltd
o Market Cap ; Rs 84,763 Cr.
o Employees : 8,064
o Market share : 18.7%
6. Ashok Leyland Ltd
o Revenue: Rs 28,476 Cr
o Market Cap :Rs 20,314 Cr
o Employees: Rs 11,966
Market share
o M&HCV Bus segment : 41.2%
Competition in Automobile Industry –

European ,Asian and American carmakers dominate the worldwide car-
manufacturing . The „the big five‟ carmakers in the global industry are Toyota ,Ford ,General
Motors , Hyundai , and Volkswagen. The automobile market is oligopolistic .An
oligopolistic market implies that the industry is dominated by a small number of car makers .
Such a market is unique because the business action of one car manufacturer significantly
influences the operation of the other players . Statistics published in 2013 by OICA ,a
carmakers association ,in 2013 show that the top 10 global carmakers controlled more than
70 per cent of the worlds automobile market. The financial operations of the players in the
industry are mutually inter-reliant . The interdependency of the players in the industry was
evident during the 2009 economic downturn where the top carmakers in the united states
market experienced similar challenges.
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Top largest Automobile manufacturing companies in the world-

1. Tata motors
Key factors:
Tata Motors established:1945
Employee strength :60000
Company turnover:$42 Billion
Vehicles sold : >9 Million
Sales & services Points :> 6600
2.Maruti Suzuki
3.Mahindra & Mahindra Ltd
4.Toyota Motor Corporation
5. Bajaj Auto Ltd
6. Chevrolet
7.Mitsubishi Motors Corporation
8.Honda Motor Co Ltd. Company
9.Ford Motor Company
10.Hero MotoCorp Ltd
Trends transforming the Automotive Industry –

The mobility of the future is “eascy” – electrified, autonomous, shared, connected and
“yearly” updated. In this study, we describe the factors influencing the sector leading up to
2030 in the key US, Europe, and China markets. It also describes how the automotive
industry should restructure itself in terms of volume, scale, and complexity.
Through mathematical modeling of key performance indicators and demographic trends, the
paper discusses:
 Mobility behaviour of users through social personas and how they could influence traffic
demand;
 External factors that will influence mobility habits, vehicle mileage and frequency of usage;
 Predictions of car inventory, replacement cycles and new sales; and
 Implications for manufacturers, suppliers, service providers and their business models.
ELECTRIFIED
AUTONOMOUS
SHARED
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CONNECTED
YEARLY UPDATED
Electrified – the transition to emissions-free mobility will become a global requirement.

Electricity used to charge vehicles will increasingly come from renewable sources to ensure
carbon dioxide-neutral mobility.
Autonomous - The development of vehicles which require no human intervention will reduce
the use of public mobility platforms and offer individual mobility to new user groups.
Shared – Professionally managed fleets of shared vehicles will reduce the cost of mobility by
a significant amount through more efficient use of expensive mobile assets.
Connected – This applies in two ways: communication between cars or with traffic
management infrastructure or between vehicle occupants and the outside world. The car of
the future will become a “third place” between home and workplace, combining features of
both.
„Yearly‟ updated – The range of models will be updated annually to integrate the latest
hardware and software developments, and react to changing requirements of shared fleet
buyers.
How new technologies have changed the automotive industry-

Throughout history, the car industry has always been of the most receptive industries to
emerging technologies. Since Henry Ford open the doors of Ford at the beginning of the
20th century, technology has redefined the way cars are manufactured, operated and
maintained. Technology has already redefined the way cars use fuel, with electric, hybrid and
solar energy systems beginning to displace the internal combustion engine and gas-fed
engines as the driving force of the future.
Technology has already redefined the way cars use fuel, with electric, hybrid and solar
energy systems in cars beginning to displace the internal combustion engine and fuel-fed
engines as the driving force of the future.
However, the growth of autonomous technologies and ongoing computers have

simultaneously begun to increase user interactivity whilst decreasing the need to take direct
control of „driving.‟
The development of autonomous technologies will redefine the driving experience, as the
user begins to handover control to an onboard navigation system. One thing is sure: the cars
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of the future will be autonomous and interactive, and both tendencies are closely entwined
with each other.
1.The Growth of Autonomous Technology
The biggest change that has already occurred in the automotive industry as a result of
technology is that of autonomy. Manufacturers are in the process of developing self-driving
cars on a larger scale.
Most modern cars feature autonomous systems like Autonomous Emergency Braking (AEB).
AEB systems use radar, cameras and lidar technology to assess the road ahead and work out
potential collisions. These systems generally inform the driver that action is needed to avoid a
future collision, and then if no action is taken, AEB will brake on behalf of the driver.
Another autonomous system that recently featured in the Google Car, is road-user
interpretive software that has been programmed to interpret the common road behaviour of
other drivers. Shape and motion descriptors allow the cars central processing unit to make
intelligent decisions in response to the movements of other road users.
The system is sophisticated enough to be able to ascertain whether surrounding road users are
cars, bicycles or motorbikes based on their speed and their movement patterns. Laser sensors
have enabled autonomous technology to develop an understanding on the movement of
vehicles around them.
2.Self-driving systems are on the radar
Audi‟s adaptive cruise control is an example of a system with a built in stop and go function.
It takes the collaboration of 30 control units to analyze the surrounding environment of the
vehicle. The Audi‟s cruise control regulates the speed according to the distance between the
driver's car and the vehicle ahead all the way from 0 to 155 mph.
Two radar sensors at the front of the vehicle enable the system to judge the distance and users
can customize the rate at which the system accelerates. The system is quite limited with
regards to deceleration. Such cruise control systems are capable of proactive supporting
drivers but they aren‟t completely autonomous.
On the current market, the BMW 7 Series has the capability to park itself without the owner‟s
intervention. Likewise, in 2015 Google started testing self-drive cars with remote sensing
technology, where a laser was mounted on the roof to generate a 3D map of the surrounding
area to navigate automatically.
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The growing prominence of cruise control systems and self-parking systems in the BMW 7
Series indicate that fully autonomous systems are going to be the natural next phase in the
auto-tech revolution.
2.Greater user interactivity
As computers have become more central to the mass production of automobiles, the capacity
for user interactivity has increased enormously. Today, every car produced has some kind of
onboard computer that controls a wide range of functions.
Many onboard computers enable the user to control GPS, cruise control, and vehicle
temperature and even exhaust emissions. These onboard systems have increased the level of
user interactivity available to drivers around the world.
Today, drivers can input a destination into their onboard GPS and run on-board diagnostics to
identify any problems with the vehicle subsystems. User interactivity as characterised the
way that our vehicles are designed and used.
Following the smartphone revolution, the automobile industry introduced smart dashboards,
with cars making use of onboard tablets that enable users to read their phone messages and
play music through the stereo with one interface.
3.Smart car technologies
Technologies like Apple CarPlay and Google Android Auto enable users to enjoy the
functionality of a phone without having to pick one up. In practice, this means that people
will spend much less time looking at their phones as they‟ll be able to interact with a larger
user interface instead.
Despite this, interacting with an onboard computer remains a distraction from the road ahead.
Or does it? As part of the emphasis on user interactivity, we are seeing manufacturers
implementing features like Gesture control, a technology that enables users to take control of
their radios through the use of hand gestures.
In the BMW 7 Series, a small sensor in the control panel of the roof monitors the area in front
of the screen to read your gestures. With the 7 Series Gesture control, you can change the
volume with a circular motion and answer or dismiss phone calls by swiping to the left or
right. Users also have the opportunity to create their own custom configurations if needed.
4.Autonomy and interactivity define the future
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If the increase in user interactivity and autonomous features has revealed anything, it‟s that
the automobile industry remains committed to the vision of the self-driving car. As
autonomous systems take over, consumers will expect more user interactivity as they travel.
It stands to reason that the less time drivers spend „driving,‟ the more time users will want to
interact with onboard technology. That‟s why developing and improving autonomous
technologies in cars is the future. Whether it‟s rosy or not, it‟s a different story.
Government Initiatives-
The Govt of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route.
Some of the recent initiatives taken by the Gvt of India are-
 Under Union Budget 2019-20, government announced to provide additional income tax
deduction of Rs 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to purchase
EVs.
 The government aims to develop India as a global manufacturing centre and R&D hub.
 Under NATRiP, the Government of India is planning to setup R&D centres at a total cost of
US$ 388.5 million to enable the industry to be on par with global standards .
 The Ministry of Heavy Industries , Government of India has shortlisted 11 cities in the
country for introduction of electric vehicles (EVs) in their public transport systems under
FAME (Faster Adoption and Manufacturing of ( Hybrid ) and Electric Vehicles in India)
scheme.
 In February 2019, the Government of India approved the FAME-ll scheme with a fund
requirement of RS 10,000 crore (US$ 1,39 billion ) for FY20-22.
Achievements:
Following are the achievements of the government in the past four year:
 In H1 2019 , automobile manufacturers invest US$ 501 million in India‟s auto-tech
companies start-ups , according to Venture intelligence .
 Investment flows into electric vehicles start-ups In 2019 (until the end if November)
increased nearly 170 per cent to reach US$ 397 million.
 On 29th July 2019 ,Inter-ministrial has sanctioned 5645 electric buses for 65 cities.
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 Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to
192451 in March 2018. During 2017-18, 47,912 two- wheelers , 185 four-wheelers ,and 10
light commercial vehicles were supported under FAME scheme.
 Under National Automative Testing And R&D Infrastructure Project (NATRIP), following
testing and research centres have been established in country since 2015
o International Centre for Automotive Technology (ICAT) ,Manesar

o National Institute for Automotive Inspection, Maintenance and Training (NIAIMT) ,Silchar
o National Automotive Testing Tracks (NATRAX) , Indore
o Automotive Research Association of India (ARIA), Pune
o Global Automotive Research Centre (GARC) , Chennai
 SAMARTH Udyog- Industry 4.0 centres:
„ Demo cum experience‟ centres are being set up in country for promoting smart and
advanced manufacturing helping SEMs to implement industry 4.0 (automation and data
exchange in manufacturing technology).
About BS4 and BS 6:
What is BS4?
The BSES, which is the governing org for emissions from all types of vehicles in the
country, introduced the first emission norms with the name “India 2000” in the year 2010.
BS2 and BS3 were introduced in 2005 and 2010, while BS4 norms came into effect in 2017
with stricter emission standards or norms.
Among the regulation set by the governing body emission related changes included tailpipe
emissions, Electronic Control Unit (ECU), ignition control etc. The most visible change was
the AHO (Automatic Headlamp On), this is one of the norms under the BS4 which cater to
the safety aspect of the new emission standards.
What is BS6?
The governing body, Bharat Stage Emission Standards (BSES), regulates the
output of pollutants from vehicles plying in the country. The central pollution control board
[Date]
24
which falls under the ministry of environment, forest and climate change sets the standards to
regulate emissions from vehicles in India.
The emission standard or norm introduced in the year 2000, was known as “India 2000”
later, BS2 and BS3 were introduced in 2005 and 2010 respectively. While the first three
emission norms were introduced at regular intervals,BS4 was introduced in 2017, after a gap
of seven years.
The BS6 standard is the sixth iteration of the emission norms and comparatively it‟s a
substantial leap in terms of reducing pollution compared to outgoing BS4. The is also
because BS5 has been skipped in an effort to move to better emission norms.
The below table offers an insight into the change in the permissible emission levels of BS6
vehicles compared to BS4 vehicles:
Pollutant Gases BS6(BSVI) BS4IV)
Fuel Type
Petrol Passenger Nitrogen <60mg> <80mg>

Vehicle Oxide(NOx)
Particulate Matter <4.5mf/km <25mg>
(PM) Limit
Diesel Passenger Nitrogen Oxid <80mg> _
Vehicle (NOx) Limit
Particular Matter <4.5mg/km <250mg>
(PM) Limit
HC+NOx 170mg/km <300mg>
[Date]
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INTRODUCTION TO COMPANY
[Date]
26
Company details :
Bajaj Automobile is an Indian global two-wheeler company and three -wheeler
manufacturing company based in Pune, Maharashtra. It manufactures – Motorcycles,
Scooters and Auto-rickshaws. Bajaj auto is the part of Bajaj Group. It was Founded by
Jamnalal bajaj in Rajasthan in the 1940s . It is based in Pune Maharashtra , with the plants in
Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The oldest plant in
Akurdi (Pune) now houses the R&D centre „Ahead‟.
Bajaj auto is the world‟s third-largest manufacturers of motorcycles and the second largest
in India. It is the worlds largest three wheeler- manufacturer .
On May 2015, its market capitalisation was Rs. 64000 crore (US$9.0 billion), making it
India‟s third largest publicly traded company by market value. The Forbes Global 2000 list
for the year 2012 ranked Bajaj Auto at 1,416.
Baja Automobile was established on 29 November 1945 as M/s Bachraj Trading corporation
Private Limited. It initially imported and sold two- and three-wheelers in India. In 1959 ,it
obtained a license from the Government of India to manufacture the two and three wheelers
and obtained license from Piaggio to manufacture Vespa Brand Scooters in India . It became
a Public ltd company in 1960.
Products and Services:
[Date]
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Dominar : sports tourer with cutting edge technology viz. triple spark liquid cooled DTS-I
USD forks, Slipper clutch , Bungee Straps < Split LCD display etc. Meant for people who
challenge their limits and not hold back to pursue their dreams pf long distance touring.
Pulsar : India‟s NO.1 Sorts bike for last 18 years and is well known for its sportiness,
seamless power delivery and advanced DTS-I Technology.
Avenger : India‟s largest selling cruiser motorcycle, and well known for its distinct and
comfortable design, which gives a feeling of liberation . Avenger is making riders in 10
countries „Feel like God‟.
Platina : The most comfortable commuter bike , thanks to its ComforTec Technology that
deliver far less jerks vs. competition, as affirmed by over 14 lac customers in last three years.
CT : A “Kushiyon Ka Jackpot” that gives a family joy if owing first bike. Over 50 lac happy
customers for its unbeatable combination of low price, great mileage , durability and
longevity.
Discover : A “Zindadil” bike that enlivens your everyday riding experience. It will excite
you with its new LED DRLs, thrill you with its powerfull engine and leave you with familiar
old feeling of our joy. Bano Zidadil!
RE : A leading thrill wheeler brand , run on petrol CND and LPG and well known for low
operating cost and boasts happy customers in over 38 countries.
Maxima : Powerfull yet very economical three-wheeler : spacious indoors for comfortable
ride
Chetak (electric) : The future of mobility is here . Shaped by smooth , well sculpted lines
that compliment its distinctive , yet elegantly flowing curves .
Motorcycles –
 Avengers 220 cruise Desert Gold Edition
 Avengers 220 Cruise
 Avengers 220 street CT 100
 CT 100B
 Dominar 400
 Discover 1
 Pulsar 150
 Pulsar 180 &180f
 Pulsar 220F
 Pulsar NS200
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 Pulsar RS200
Three-wheelers-
 Re Copmact
 RE Compact 4S
 Re Optima
 RE Maxima
Four-wheelers-
 Quote
Scooters- Bajaj Chetak Electric Scooter
Some of the Discontinued scooters are-Bajaj 150, Bajaj Bravo,Bajaj Chetak,Bajaj Cub, Bajaj
Classic, Bajaj Kristal, Bajaj M50 , and etc..
Some of the Discontinued Motorcycles are- Baja Kawasaki Aspire 110, Bajaj Kawasaki
Boxer 100,Bajaj Avenger 180 and etc..
Achievements –
2009 -April -Bajaj Pulsar 150& Pulsar 180 upgrade
January launched.
2008 -September - Bajaj Platina 125 DTS-Si launched

August
July
June
2007 -December -RE GDi autorickshaw launched
September
August
July
June
April
February
January
2006 - April -Bajaj Platina launched
2005 -December -Bajaj Discover launched

June
[Date]
29
February
2004- October -Bajaj Discover DTS-I launched

August
May
January
2003- October - Bajaj Pulsar DTS-I is launched , 107,115

Motorcycles sold in a month.
July
February
2001- November - Bajaj Auto launches its latest offering in the

January premium bike segment „Pulsar‟ .
2000 - The Bajaj Saffire is introduced.
1999 - Caliber motorcycle notches up 100000 sales in

record time 12 months .
1998 - Production commences at Chakan plant.

June
July
October
1997 - The Kawasaki Bajaj Boxer and the RE

diesel Autorickshaw are introduced.
1995 - November 29 - Bajaj Auto is 50. Agreements signed with Kubota.

2007 of Japan for the development of diesel engines for
three-wheelers and with Tokyo R&D for ungeared
Scooter and moped development. The Bajaj Super
Excel is introduced while Bajaj celebrates its ten
[Date]
30
millionth vehicle. One million vehicles were produced

and sold in this financial year.
1994 - The Bajaj Classic is introduced.
1991 -The Kawasaki Bajaj 4S Champion is introduced.
1990 - The Bajaj Sunny is introduced.
1986 - The Bajaj M80 and Kawasaki Bajaj KB100 2005

motorcycles are introduced. 50000 vehicles
produced and sold in a single financial year.
1985 - November 5 - The Waluj plant inaugurated by erstwhile

President of India.
1984 - January 19 - Foundation Stone laid for the new Plant at Waluj,
Aurangabad.
1981 - The Bajaj M-50 is introduced.
1977 - The Pear Engine Autorickshaw is introduced.
Top Competitors of Bajaj Auto Ltd-

 TVS Motor Company
 Hero MotoCorp
 Honda Motorcycle and Scooter India
 Piaggio Group
 Royal Enfield
 KYMCO
SWOT ANALYSES :
[Date]
31
STRENGTH
 Highly experienced management.
 Extensive R &D focus.
 High performance products across all
categories.
 Collaboration with BAFL for financing.
 High economies of scale and scope.
OPPORTUNITIES
 Rising disposable income.
 Increase first time in motorbikes buyers
 Decline in interest rate for two wheeler
financing.
 Shift from entry level motorbikes to
performance oriented bikes.
 Inadequate public transportation
infrastructure.
 Low operating cost.
THREATS
 Imitation of designs and technological
 Innovations by competitors in easy
 Foreign players coming in India, especially
 Low cost Chinese motorbikes manufaturers
 Declining margins due to increasing
 Competition
[Date]
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[Date]
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INTRODUCTION TO TOPIC:
INTRODUCTION:
The significance of financial statement not lies in their preparation but in

their analysis and interpretation. Therefore analysis and interpretation is to achieve
and determine the importance of financial statements. It increases the concept of
accounting data. To provides more clearly in common language, which helps to
[Date]
34
predict the future earnings, capacity to pay dividend policy etc. the analysis and
interpretation are two terms combining to each other. For interpretation analysis is
necessary and analysis without interpretation is meaningless.
ANALYSES:
“A process of grouping or sub grouping of a given data for the purpose of
developing some connection among the groups either for decisions or for future
forecast” .The financial analysis involves the division of information on the basis of
some exact plans and to classify them into groups on the basis of some conditions
and presenting them in most convenient, easy and understandable. Therefore
analysis involves the following:
 To understand the data presented in the financial statements.
 Collection of additional knowledge necessary for interpretation.
Presentation of the financial data in logical and easy manner
 Grouping and sub grouping of the items given in the financial statements
on the basis of familiar characteristics.
 Development connection from one group to another group for forecast.
The data shown in the financial statements is rearranged and methodically classified
for comparisons. For this purpose some standards are established for comparison
such as: Past year facts and figures may be used as standard for comparison with the
present year figures.
Future years forecasted figures may be used as standards.
Another growing up or successful firm‟s figures may be used as standards.
Over all industry figures may be used as standards for a Comparison. The
connection can also be established from one item of statement to the other item of
statement. E.g.Net Profit (NP) or Gross Profit (GP) to sales, Current Assets to
Current Liabilities, Cost of Sales to Inventory/Stock, Fixed Assets to Capital etc.
INTERPRETATION:
To interpret means to place the meaning of data in simple and understandable
manner to a common man. Interpretation can be made only after analysing. It is the
explanation of the conclusion drawn from analysis in common terms. The
interpretation involves the following.
 Study of connection among the items of financial statements.
[Date]
35
 Study of trend over a period or exact data with the standard data used
for comparison. Conclusions are put in common terms for easy and
understanding for a common man.
Uses \Advantages of Analyses of Financial Statements:
 It helps in determining financial strength or weakness of the firm.

 It highlights the important facts and relations which cannot be
understood by mere reading of financial statements.
 It is based on logical and scientific method and which is useful for decisions.
 It is helpful to understood multidirectional connections of the different
items of financial statements.
 It reduces the injury of wrong or delayed decisions.
 It helps to assess right and accurate decisions.
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RESEARCH METHODOLIGY
TOOLS OF FINANCIAL ANALYSES OR METHODOLOGY OF ANALYSES

1) Comparative financial statement
2) Ratio Analyses
1. Comparative Financial Statement:

Comparative statements are those statements which give brief and present
related accounting data for many years. It is the process of the financial statements
[Date]
37
in such a manner that each part of the financial statement is of equivalent with same
aspect of the financial statement of another period. Generally the financial
statements of two periods are used for the study. While preparing comparative
statements one should know that accounting principles, policies should be identical.
Any material change in such principles, policies etc. comparative statements are
useless.
Comparative Statement Provides the Following.
1. Comparative change in amount or figures.
2. Comparative change in percentages (%).
3. Increase or decrease in figures and percentage.
Types of Comparative Statement:
For the purpose of Comparative analysis the statements are classified into two types:
a) Comparative Balance Sheet:
Under this technique the balance sheet of two different periods or balance sheets of
one company to another company may be used for comparative study. The item or
group of items of one balance sheet is compared with the same another balance
sheet. The comparative balance sheet is useful to study the liquidity position,
financial status, long term financial position etc.
Following are the steps for pre-pare comparative balance sheet.

 Re-draft the balance sheet in vertical form.
 Prepare 2 additional columns, one for comparative change & another for
percentage change.
 study the trend (increase or decrease) and form the Opinions.
 Interpret the same.
b) Comparative Income Statements:
The comparative income statement is prepared to study the growth rate in
profitability, expenses; cost of goods sold etc. usually two years income statements
are measured. For this purpose two additional columns are prepared for recording
the comparative change and percentage (%) change. The facts and figures in the
financial statements i.e. (Balance sheet P&L a/c Reports) can be transformed into
meaningful and useful figures through a process called Analysis and Interpretation.
[Date]
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2. Ratio analysis:
The financial statement of a company contains a lot of information about the financial
performance of the company. Financial statements mainly consist of the Balance Sheet and
Profit and Loss Accounts. These statements give the overall picture of the company, but to
analyze each aspect of business extensively, financial ratios are used. The Balance Sheet and
the Statement of Income are essential, but they are only the starting point for successful
financial management. Financial Ratio Analysis derived from Financial Statements analyses
the success, failure, and progress of business. Ratio Analysis is a very powerful analytical
tool useful for measuring the performance of an organization. The ratio analysis concentrates
on the interrelationship among the figures appearing in the mentioned financial statements.
The ratio analysis helps the management to analyze the past performance of the firm and to
make further projections
As the organization employs capital on fixed assets for the purpose of equipping itself with
the required manufacturing facilities to produce goods and services which are saleable to the
customers to earn revenue, it is necessary to measure the degree of success achieved in this
bearing. This ratio establishes the relationship between the amount of sales revenue and the
amount of capital employed on fixed assets.
Ratio refers to the establishment of relationship between any two inter-related variables .For
example, both the amount of profit and the amount of sales revenue earned are inter-related
as one is influenced by another.
Accounting Ratios shows the inter-relationships that exist among various accounting data.
Accounting Ratios express the relationships, in the mathematical terms, between two or more
items (of financial statements and others) which have a cause and effect relationship or which
are connected with each other in one way or the other. Since the Analysis and
Interpretation of Financial Statements is made with the help of ratios it is called Ratio
Analysis. The ratio analysis is, an effective tool or a device to diagnose the financial and
operational diseases of business enterprises. The Ratio Analysis of Financial Statements
stands for the purpose of arrangement of data, computation of ratios, interpretation of the
ratios so computed and projections through ratios.
STEPS IN RATIO ANALYSIS:
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Collect all the data required for computing the necessary ratios which in turn depends upon
the purpose of calculating the ratios
With the help of above information, compute the necessary accounting ratios.
Compare the ratios so computed either with the ratios of the same company for the previous
years.
Interpret the ratios in the light of the comparison, draw inferences, and prepare reports.
VARIOUS ACCOUNTING RATIOS:

(Functional wise classification)
A. Liquidity Ratio
B. Turnover Ratio
C. Solvency or Leverage ratios
D. Profitability ratio
[Date]
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ANALYSES AND INTERPRETATION
Comparative Financial Statement:

In Comparative Financial Statement (CFS), two or more Balance Sheet and/ or the
Income Statement (IS) of a firm are presented simultaneously in columnar form. The
financial data for two or more years are placed and presented in adjacent columns and
thereby the financial data is provided a times perspective in order to facilitate periodic
comparison.
The preparation of the CFS is based on the premise that a statement covering a
period of a number of years is more meaningful and significant than for a single year only,
[Date]
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and that the financial statement for one period represent only 1 phase of the long and
continuous history of the firm. The CFS can be prepared for both the BS and the IS.
Comparative Balance Sheet (CBS)

The CBS shows the different assets and liabilities of the firm on different dates to make
comparisons of absolute balances and also of changes if any, from one date of another. The
CBS may be helpful in analyzing and evaluating the financial position of the firm over a
period of number of the year.
(Note: All the table contains the amount in Crores)
Particulars 2010 2011 Increase/Decrease Increase/Decrease
Amt %
Equity and Liabilities
Current Liabilities 4,316.71 3888.4 -428.31 -9.92
Non- Current 1,327.29 482.84 -844.45 -63.62
Liabilities
Shareholder's Funds 2,716.93 4,807.22 2,090.29 76.94
Minority interest 0.38 0.29 -0.09 -23.68
TOTAL 8,361.31 9,178.75 817.44 -20.29
Assets
Current assets 2,949.09 3,063.21
Fixed assets 1,933.17 1,556.51 -428.31 -9.92
Non-Current 3,445.23 3,524.09 -844.45 -63.62
investments
Long term loan and 0 227.71 2,090.29 76.93
advances
Other Non-current 0 807.23 -0.09 -23.68
assets
TOTAL 8,361.31 9,178.75 817.44 9.77
Interpretation:
By comparing the Balance Sheet of 2010 and 2011 there is increases in total
assets and liabilities from Rs 8,361.31 to Rs 9,178.75.
Amt %
Current Liabilities 4316.71 3888.4 -428.31 -9.922139778
Non- Current Liabilities 1327.29 482.84 -844.45 -63.62211725
Shareholder's Funds 2716.93 4807.22 2090.29 76.93573261
[Date]
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TOTAL 8361.31 9178.75 817.44 -20.29273494
Assets
Current assets 2949.09 3063.21
Fixed assets 1933.17 1556.51 -428.31 -9.922139778
Non-Current investments 3445.23 3524.09 -844.45 -63.62211725
Long term loan and 0 227.71 2090.29 76.93573261
advances
Other Non-current 0 807.23 -0.09 -23.68421053
assests
TOTAL 8361.31 9178.75 817.44 9.776458474

Amt %
Equity and
Liabilities
Current Liabilities 4,667.38 4,165.84 -501.54 -10.74
Non- Current 416.15 444.59 28.44 6.83
Liabilities
Minority interest 0.17 0 -0.17 -100
TOTAL 11,165.42 12,675.73 1,510.31 -71.29
Assets
Current assets 5,185.44 6,181.59 996.15 19.21
Fixed assets 1,527.08 2,100.71 573.63 37.56
Non-Current 3,376.18 3,347.59 -28.59 -0.84
investments
Long term loan and 601.66 463.16 -138.5 -23.01
advances
Other Non-current 475.06 582.68 107.62 22.65
assets
TOTAL 11,165.42 12,675.73 1,510.31 55.56
Interpretation:
By comparing the balance sheet of 2012 and 2013 there is increase in total assets
and liabilities from Rs 11,165.42 to Rs 12,675.42.
[Date]
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Amt %
Current Liabilities 4,730.86 4,476.86 -254 -5.36
Non- Current 409.58 393.38 -16.2 -3.95
Liabilities
Shareholder's Funds 1,0167.26 1,1095.32 928.06 9.12
TOTAL 15,307.76 15,965.6 657.84 -33.52
Assets
Current assets 5,624.44 9,566.83 3,942.39 70.09
Fixed assets 2,150.48 2,172.18 21.7 1.00
Non-Current 6,158.07 3,184.69 -2,973.38 -48.28
investments
Long term loan and 720.55 511.07 -209.48 -29.07
advances
Other Non-current 654.22 530.83 -123.39 -18.86
assets
TOTAL 15,307.76 15,965.6 657.84 -25.11
Interpretation:
By comparing the Balance sheet of 2014 and 2015 there is increase in total assets
and liabilities of Rs 15,307.6 to Rs 15,965.6.

Amt %
Current Liabilities 2,781.06 3,212.84 431.78 15.52
Non- Current 438.96 568.18 129.22 29.43
Liabilities
Minority interest 0 0 0 0
TOTAL 1,7240.33 2,1637.59 4,397.26 72.32
Assets
Current assets 4,732.91 9,468.53 4,735.62 100.05
Fixed assets 2,138.31 2,043.95 -94.36 -4.41
Non-Current 9,686.86 9,426.96 -259.9 -2.68
investments
Long term loan and 29.47 29.74 0.27 0.91
advances
Other Non-current 652.78 668.4 4,381.63 93.87
[Date]
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assets
TOTAL 17,240.33 21,637.58 8,763.26 187.75
Interpretation:

Amt %
Non- Current 604.34 726.81 122.47 20.26
Liabilities
TOTAL 25,140.98 28,834.4 3,693.42 52.55
Assets
Current assets 9,250.83 7,073.16 -2,177.67 -23.54
Fixed assets 1,934.8 1,811.96 -122.84 -6.34
Non-Current 13,129.16 19,026.37 5,897.21 44.91
investments
Long term loan and 30.68 31.65 0.97 3.16
advances
Other Non-current 795.53 891.26 95.73 12.03
assets
TOTAL 25,140.98 2,8834.4 3,693.4 30.22
and liabilities of Rs 17,240.33 to Rs 21,637.58.
Interpretation:
and liabilities of Rs 25,140.98 to Rs 28,834.4 .
[Date]
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COMPARATIVE INCOME STATEMENT (CIS)

A CSI shows the figure of different items of the IS of the firm in absolute terms, the absolute
changes from one period to another and if desired, the changes in percentage form. The CIS is helpful
in deriving meaningful conclusions regarding changes in sales volume, cost of goods sold, different
expenses items etc. from the CIS, a financial analyst can quickly ascertain whether sales are increasing
or decreasing and by how much amount or by how much percentage.
Particulars 2010 2011 Increase/Decrease Increase/Decrease%

Amt
Revenue From 12,455.61 1,6429.09 3,973.48 31.90
Operations
Other Income 241.01 578.96 337.95 140.22
TOTAL Revenue 12,088.92 1,7008.05 4,919.13 40.69
Total Expenses 9,711.47 1,3396.9 3,685.43 37.94
Profit Before Tax 2,377.45 3,454.89 1,077.44 45.31
Total Tax 703.45 1,006.29 302.84 43.05
Profit After Tax 1,674 3,431.68 1,757.68 104.99
Interpretation:
From the above comparative income statement 2010-2011 there is increase in the Total
revenue of the company from Rs12,088.92 and Rs 17,008.05.

Amt %
Revenue From 19,594.65 20,041.99 447.34 2.28
Operations
Other Income 606.61 797.13 190.52 31.40
TOTAL Revenue 20,201.26 20,839.12 637.86 33.69
Total Expenses 16,054.2 16,562.51 508.31 3.16
Profit Before Tax 4,013.06 4,276.61 263.55 6.56
Total Tax 1,019.66 1,217.16 197.5 19.36
Profit After Tax 2993.4 3,059.45 66.05 2.20
[Date]
46
Interpretation:
From the above comparative income statement 2012-2013 there is decrease in
the Total revenue of the company from Rs 20,201.26 and Rs 20,839.12. This results in the
decrease in profit of the company.

Amt %
Revenue From 20,158.29 21,614.27 1455.98 7.22
Operations
Other Income 681.81 583.95 -97.86 -14.35
TOTAL Revenue 20,840.1 22,198.22 1,358.12 6.51
Total Expenses 16,185.23 17,774.98 1,589.75 9.82
Profit Before Tax 4,654.87 4,423.24 -231.63 -4.97
Total Tax 1,390.1 1,271.05 -119.05 -8.56
Profit After Tax 3,264.77 ,2811.9 -452.87 -13.87
Interpretation:
From the above comparative income statement 2014-2015 there is increses in Total
revenue of company from Rs 20,840.1 and Rs 22198.22.

Amt %
Revenue From 23,883.2 23,088.03 -795.17 -3.32
Operations
Other Income 984.58 1,222.23 237.65 24.13
TOTAL Revenue 24,867.7 24,310.26 -557.52 -2.24
8
Total Expenses 19,410.3 18,977.33 -433 -2.23
3
Profit Before Tax 5,678.89 5,587.55 -91.34 -1.60
Total Tax 1,617.65 1,508.07 -109.58 -6.77
Profit After Tax 4,061.24 4,079.48 18.24 0.44
Interpretation :
From the above comparative income statement there is decrease in the Total
revenue of the company from Rs 24,867.78 and Rs 24,310.26. This results in the decrease in
the profit of the company.
Particulars 2018 2019 Increase/Decrease Increase/Decrease %

Amt
Revenue From 25,617.27 30,249.96 4632.69 18.08
[Date]
47
Operations
Other Income 1,158.26 1,555.01 396.75 34.25
TOTAL Revenue 26,775.53 31,804.97 5,029.44 18.78
Total Expenses 21,097.73 25,541.14 4,443.41 21.06
Profit Before Tax 5,933.41 6,955.58 1,022.17 17.22
Total Tax 1,714.47 2,027.98 313.51 18.28
Profit After Tax 4,218.94 4,927.6 708.66 16.79
Interpretation:
From the above comparative income statement there is increase in the Total
revenue of the company from Rs 26,775.53 and Rs 31,804.97.
COMMON SIZE BALANCE SHEET
The CCS represents the relationship of different items of a financial statement with
some common item by expressing each item as a percentage of the common item. In
common size Balance sheet, each item of the Balance sheet is stated is stated as a percentage
of the total of the Balance sheet.
Particulars 2010 2011 2010% 2011%
Equity And
Liabilities
Non-Current 1,327.29 482.84 15.87 5.26
Liabilities
Shareholder's 2,716.93 4,807.22 32.49 52.37
Funds
Minority interest 0.38 0.29 0.00 0.00
TOTAL 8,361.31 9,178.75 100 100
Assets
Current Assets 2,949.09 3,063.21 35.27 33.37
Fixed Assets 1,933.17 1,556.51 23.12 16.95
Non-current 3,445.23 3,524.09 41.20 38.39
investments
Long term loans 0 227.71 0 2.48
and advances
Other non-current 0 807.23 0 8.79
assets
TOTAL 8,361.31 9,178.75 100 100
Interpretation:
From the above Common size Balance sheet of 2010 and 2011 there is increase
in Total assets and liabilities from Rs 8,361.31 and Rs 9,178.75.
Particulars 2012 2013 2012% 2013%
[Date]
48
Equity And Liabilities

Non-Current Liabilities 416.15 444.59 3.72 3.50
Shareholder's Funds 6,081.72 8,065.3 54.46 63.62
TOTAL 1,1165.42 1,2675.73 99.99 100
Assets
Current Assets 5,185.44 6,181.59 46.44 48.76
Fixed Assets 1,527.08 2,100.71 13.67 16.57
Non-current 3,376.18 3,347.59 30.23 26.40
investments
Long term loans and 601.66 463.16 5.38 3.65
advances
Other non-current 475.06 582.68 4.25 4.59
assets
TOTAL 11,165.42 12,675.73 100 100
Interpretation:
From the above Common size Balance sheet of 2012 and 2013 there is
increase in total assets and liabilities from Rs 11,165.42 and Rs 12,675.73.
Particulars 2014 2015 2014% 2015%

Equity And
Liabilities
Non-Current 409.58 393.38 2.67 2.46
Liabilities
Shareholder's 10,167.26 11,095.32 66.41 69.49
Funds
Minority interest 0.06 0.04 0.00 0.00
TOTAL 15,307.76 15,965.6 100 100
Assets
Current Assets 5,624.44 9,566.83 36.74 59.92
Fixed Assets 2,150.48 2,172.18 14.04 13.60
Non-current 6,158.07 3,184.69 40.22 19.94
investments
Long term loans 720.55 511.07 4.70 3.20
and advances
assets
TOTAL 15,307.76 15,965.6 100 100
Interpretation:
From the above Common size Balance sheet of 2014 and 2015there is increase
in Total assets and liabilities from Rs 15,307.76 and Rs 15,965.6.
[Date]
49
Particulars 2016 2017 2016% 2017%

Equity And
Liabilities
Non-Current 438.96 568.18 2.54 2.62
Liabilities
Shareholder's 14,020.31 17,856.57 81.32 82.52
Funds
TOTAL 17,240.33 21,637.59 100 100
Assets
Current Assets 4,732.91 9,468.53 27.45 43.75
Fixed Assets 2,138.31 2,043.95 12.40 9.44
Non-current 9,686.86 9,426.96 56.18 43.56
investments
Long term loans 29.47 29.74 0.17 0.13
and advances
assets
TOTAL 17,240.33 21,637.58 100 100
Interpretation:
From the above Common size Balance sheet of 2016 and 2017 there is increase in
Total assets and liabilities from Rs 17,240.33 and Rs 21,637.58.
Particulars 2018 2019 2018% 2019%

Equity And
Liabilities
Non-Current 604.34 726.81 2.40 2.52
Liabilities
Shareholder's 20,425.24 23,233.81 81.24 80.57
Funds
TOTAL 25,140.98 28,834.4 100 100
Assets
Current Assets 9,250.83 7,073.16 36.79 24.53
Fixed Assets 1,934.8 1,811.96 7.69 6.28
Non-current 13,129.16 19,026.37 52.22 65.98
investments
Long term loans 30.68 31.65 0.12 0.10
and advances
assets
[Date]
50
TOTAL 25,140.98 28,834.4 100 100
Interpretation :
From the above Common size Balance sheet of 2018 and 2019 there in increase in
Total assets and liabilities from Rs 25,2140.98 and Rs 28,834.4.
COMMON SIZE INCOME STATEMENT

In common size income statement, each item is stated as percentage of the net sales.
The percentage for different items is computed by dividing the absolute amount of that item
by the common base and then multiplying by 100.The percentage so calculated can be easily
compared with the corresponding percentages in some other period.
Particulars 2010 2011 2010% 2011%
Revenue From 12,455.61 16,429.09 100 100
Operations
Other Income 241.01 578.96 1.93 3.52
TOTAL Revenue 12,088.92 17,008.05 5015.94 2937.69
Total Expenses 9,711.47 13,396.9 80.33 78.76
Profit Before 2,377.45 3,454.89 24.48 25.78
Tax
Total Tax 703.45 1006.29 29.58 29.12
Profit After Tax 1,674 3,431.68 237.97 341.02
Interpretation :
From the above Common size income statement of 2010 and 2011 there is
increase in Total revenue from Rs 12,088.92 and Rs 17,008.05.
Particulars 2012 2013 2012% 2013%

Revenue From 19,594.65 20,041.99 100 100
Operations
Other Income 606.61 797.13 3.09 16.34
TOTAL Revenue 20,201.26 20,839.12 3330.18 2614.26
Total Expenses 16,054.2 16,562.51 79.47 79.47
Profit Before 4,013.06 4,276.61 24.99 25.82
Tax
Total Tax 1,019.66 1,217.16 25.40 28.46
Profit After Tax 2,993.4 3,059.45 293.56 251.35
Interpretation:
[Date]
51
decrease in Total revenue from Rs 20,201.26 and RS 20,839.12. This results in the decrease
in profit of the company.
Particulars 2014 2015 2014% 2015%

Revenue From 20,158.29 21,614.27 100 100
Operations
Other Income 681.81 583.95 3.38 2.70
TOTAL Revenue 20,840.1 22,198.22 3056.58 3801.39
Total Expenses 16,185.23 17,774.98 77.66 80.07
Profit Before 4,654.87 4,423.24 28.75 24.88
Tax
Total Tax 1,390.1 1,271.05 29.86 28.73
Profit After Tax 3,264.77 2,811.9 234.85 221.22
Interpretation:
increase in Total revenue of Rs 20,840.1 and Rs 22,198.22.
Particulars 2016 2017 2016% 2017%

Revenue From 23,883.2 23,088.03 100 100
Operations
Other Income 984.58 1,222.23 4.12 5.29
TOTAL Revenue 24,867.78 24,310.26 2525.72 1989.00
Total Expenses 19,410.33 18,977.33 78.05 78.06
Profit Before 5,678.89 5,587.55 29.25 29.44
Tax
Total Tax 1,617.65 1,508.07 28.48 26.98
Profit After Tax 4,061.24 4,079.48 251.05 270.50
Interpretation :
decrease in Total revenue from Rs 24,867.78 and Rs 24,310.26. This results in the decrease in
profit of the company.
Particulars 2018 2019 2018% 2019%

Revenue From 25,617.27 30,249.96 100 100
Operations
Other Income 1,158.26 1,555.01 4.52 5.14
TOTAL Revenue 26,775.53 31804.97 2,311.70 2045.32
Total Expenses 21,097.73 25,541.14 78.79 80.30
[Date]
52
Profit Before 5,933.41 6,955.58 28.12 27.23

Tax
Total Tax 1,714.47 2,027.98 28.89 29.15
Profit After Tax 4,218.94 4,927.6 246.07 242.98
Interpretation :
From the above Common size income statement of 2018 and 2019 there is increase in
Total revenue of Rs 26,775.53 and Rs 31,804.97.
FINANCIAL RATIO ANALYSES:

Meaning:
An analyses of financial statement with the help of „ratio‟ is called „Ratio
Analyses‟.
The analyses of financial statement is an important aid to financial analyses
.Various methods are adopted for financial statement analyses .Ratio Analyses is one the
methods used.
RATIO ANALYSIS
It refers to the systematic use of ratios to interpret the financial statements in terms of the
operating performance and financial position of a firm. It involves comparison for a
meaningful interpretation of the financial statements.
In view of the needs of various uses of ratios the ratios, which can be calculated from the
accounting data are classified into the following broad categories
 Liquidity Ratio
 Turnover Ratio
 Solvency or Leverage ratios
 Profitability ratios
a) LIQUIDITY RATIO:
It measures the ability of the firm to meet its short-term obligations, that is capacity of the
firm to pay its current liabilities as and when they fall due. Thus these ratios reflect the
short-term financial solvency of a firm. A firm should ensure that it does not suffer from
lack of liquidity. The failure to meet obligations on due time may result in bad credit
[Date]
53
image, loss of creditors confidence, and even in legal proceedings against the firm on the
other hand very high degree of liquidity is also not desirable since it would imply that
funds are idle and earn nothing. So therefore it is necessary to strike a proper balance
between liquidity and lack of liquidity. The various ratios that explains about the liquidity
of the firm are
1. Current Ratio
2. Acid Test Ratio / quick ratio
3. Absolute liquid ration / cash ratio
1. CURRENT RATIO
The current ratio measures the short-term solvency of the firm. It establishes the relationship
between current assets and current liabilities. It is calculated by dividing current assets by
current liabilities.
Current Ratio = Current Asset
Current Liabilities
Current assets include cash and bank balances, marketable securities, inventory, and
debtors, excluding provisions for bad debts and doubtful debtors, bills receivables and
prepaid expenses.
Current liabilities includes sundry creditors, bills payable, short- term loans, income-tax
liability, accrued expenses and dividends payables.
( Note: Below figures are in Cr.)
Year Current Asset Current Liabilities Current Ratio
2010 1,611.29 2,864.16 0.56
2011 3,063.21 3,888.40 0.79
2012 5,185.44 4,667.38 1.11
2013 6,181.59 4,165.84 1.48
2014 5,624.44 4,730.86 1.19
2015 9,566.83 4,476.86 2.14
2016 4,732.91 2,781.06 1.70
2017 9,468.53 3,212.84 2.95
2018 9,250.83 4,111.40 2.25
2019 7,073.16 4,873.78 1.45
[Date]
54
Interpretation:
The above table and graph shows that the current ratio of the company is
fluctuating year by year. In the 2010 it was 0.6 . It increased to 0.7 during 2011. In the year
2013 it was increased to 1.5 .During 2014 it decreased to 1.3 and then during 2017 it
increased to 2.9 and during 2018 it decreased to 2.3.Later for 2019 it decreased to 1.9.They
should increase their assets or either reduce their liabilities to balance their company
operations.
2. ACID TEST RATIO / QUICK RATIO

It has been an important indicator of the firm‟s liquidity position and is used as a
complementary ratio to the current ratio. It establishes the relationship between quick assets
and current liabilities. It is calculated by dividing quick assets by the current liabilities.
Acid Test Ratio = Quick Assets
Current liabilities
Quick assets are those current assets, which can be converted into cash immediately or
within reasonable short time without a loss of value. These include cash and bank balances,
sundry debtors, bill‟s receivables and short-term marketable securities.
(Note :Below figures are in Cr.)
Year Quick assets Quick liabilities Quick Ratio
2010 1,015.29 2,864.16 0.35
2011 2,486.96 3,888.40 0.64
2012 4,481.83 4,667.38 0.96
2013 5,537.63 4,165.84 1.33
2014 4,983.23 4,730.86 1.05
2015 8,752.68 4,476.86 1.96
2016 4,013.84 2,781.06 1.44
2017 8,740.15 3,212.84 2.72
2018 8,508.25 4,111.40 2.07
2019 6,111.65 4,873.78 1.25
[Date]
55
Interpretation:
In the above tables and graph quick ratio of the company is fluctuating day by
day . In the year 2010 it was 3.6. During 2011 it decreased to 0.6 . In the year 2012 it
increased to 1 and during 2013 it increased again to 1.8. In the year 2014 in decreases to 1.1
and during 2015 it increases to 2. In 2016 it decreases to 1.9 and during 2017 it Increases to
2.7 . Later during 2018 it decreases to 1.3. They have to increase their current assets which
will in liquidity and reduce the current liabilities .
3. ABSOLUTE LIQUID RATIO / CASH RATIO

It shows the relationship between absolute liquid or super quick current assets and liabilities.
Absolute liquid assets include cash, bank balances, and marketable securities.
Absolute liquid ratio = Absolute liquid assets
Current liabilities
(Note: Below figures are in Cr.)
Year Absolute Liquid Assets Current Liabilities Absolute Liquid Ratio
2010 107.30 2,864.16 0.04
2011 575.25 3,966.91 0.15
2012 1659.84 4,667.38 0.36
2013 566.51 4,165.84 0.14
2014 500.90 4,730.86 0.11
2015 592.74 4,476.86 0.13
2016 867.03 2,781.06 0.31
2017 301.36 3,212.84 0.09
2018 792.66 4,111.40 0.19
2019 933.07 4,873.78 0.19
[Date]
56
Interpretation:
In the above table and graph absolute liquid ratio of the company is fluctuating
year by year .In the year 2010 it was 0.04 and later it increased to 0.15 in 2011 . In the year
2012 it increases to 0.36 and during it 2013 in decreases to 0.14 ,it was 0.2 at 2014, and
during 2015 it was 1.14. In the year 2016 it increases to 0.31 and decreases to 0.09 in 2017.
In 2018 and 2019 it increases to 0.19.They should either increase the cash and bank balance
or should decrease the current liabilities to maintain the sufficient absolute liquid assets.
b) TURNOVER RATIO:
Turnover ratios are also known as activity ratios or efficiency ratios with which a firm
manages its current assets. The following turnover ratios can be calculated to judge the
effectiveness of asset use.
1. Inventory Turnover Ratio
2. Accounts Receivables Turnover Ratio
3. Account Payables Turnover Ratio
4. Assets Turnover Ratio
5. Fixed Asset Turnover Ratio
6. Average Payment Period
[Date]
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7. Average Collection Period

1.INVENTORY TURNOVER RATIO
This ratio indicates the number of times the inventory has been converted into sales during
the period. Thus it evaluates the efficiency of the firm in managing its inventory. It is
calculated by dividing the cost of goods sold by average inventory.
Inventory Turnover Ratio = Cost of goods sold
Average Inventory
The average inventory is simple average of the opening and closing balances of inventory.
(Opening + Closing balances / 2). In certain circumstances opening balance of the inventory
may not be known then closing balance of inventory may be considered as average inventory.
Year Cost Of Goods Sold Average Inventory Inventory Turnover Ratio
2010 9,241.87 568.04 16.27
2011 11,991.12 746.52 16.06
2012 15,581.59 928.06 16.79
2013 15,765.38 1,025.59 15.37
2014 15,503.42 964.57 16.07
2015 17,191.03 1,048.29 16.40
2016 18,204.31 1,173.69 15.51
2017 17,500.48 1,083.21 16.16
2018 20,842.12 1,099.57 18.95
2019 23,849.39 1,223.28 19.50
[Date]
58
Interpretation:
The above table and graph the inventory turnover ratio are fluctuating year by
year. In the year 2010 it was16 and during 2011 it was 16.5. In the year 2012 it increased to
17 in the year 2013 it decreases to 15.5 , it was 16 during 2014 .In the year 2015 it increases
to 17 and during 2016 it decreases to 15.5. In the year 2017 it was increased to 16 and during
2018 it increases to 18. Lastly during 2019 it increases to 19.
2.Account Receivables Turnover Ratio:

Net sales\Revenue
Average Account Receivables
(Note : Below figures are in Cr)
Year 365Days A/C receivable turnover Average collection period
2010 365 25.53 14.30
2011 365 34.58 10.56
2012 365 34.30 10.64
2013 365 21.43 17.03
2014 365 17.33 21.06
2015 365 19.38 18.83
2016 365 22.19 16.45
2017 365 17.59 20.75
2018 365 13.60 26.83
2019 365 9.32 39.17
[Date]
59
Interpretation:
The above table above graph the account recievable turnover ratio is fluctuating
year by year .In the year 2010 it was 25 and during 2011 it increases to 34 and during 2012 it
was 34 .In the year 2013 it decreases to 21 and it was 17 in the year 2014. In the year 2015 it
increases to 19 and during 2016 increases to 23 . In the year 2017 it decreases to 17 and in the
year 2018 it was 14. In the year 2019 it decreases to 9.The company has to extend the credits
and collection of debts to manage account recievable ratio.
3.Account Payables Turnover Ratio:

Net Sales\Revenue
Average account Payable
Year Sales Average A/C Payable Account payables T.O.R

2010 11,543.16 1,976.72 5.84
2011 16,429.09 2,583.26 6.36
2012 19,594.65 2,867.27 6.83
2013 20,041.99 2,966.11 6.76
2014 20,158.29 3,102.76 6.50
2015 21,614.27 2,855.73 7.57
2016 23,883.20 2,927.02 8.16
2017 23,088.03 3,249.54 7.11
2018 26,775.53 4,362.41 6.14
2019 30,804.97 5,409.04 5.70
[Date]
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Interpretation:
The above table and graph the account payable turnover ratio is fluctuating
year by year. In the year 2010 it was 5.83 . In the year 2011 in increases to 6.435 and during
2012 it was 6.83 . In the year 2013 decreases to 6.75 and during 2014 it decreases to 6.49 . In
the year 2015 it increases to 7.56 and during 2016 it increases to 8.15. In the year 2017 it
decreases to 7.10 and during 2018 it decreases to 6.13 .In the year 2019 it decreases to
5.69.The company has to pay its suppliers faster to have good financial condition.
4.ASSET TURNOVER RATIO:

Asset turnover ratio , total asset turnover ratio or asset turns is a financial
ratio that measures the efficiency of a company‟s use of assets in generating sales revenue or
sales income of the company.
Asset turnover ratio = Revenue *100
Total assets
(Note :Below figures are in Cr)
[Date]
61
Year Revenue Total Assets Total Asset Turnover Ratio

2010 11,543.16 4,080.00 282.92
2011 16,429.09 9,178.75 178.99
2012 19,594.65 11,162.41 175.54
2013 20,041.99 12,675.73 158.11
2014 20,158.29 15,307.76 131.69
2015 21,614.27 15,965.60 135.38
2016 23,883.20 17,240.37 138.53
2017 23,088.03 21,637.62 106.70
2018 26,775.53 25,141.00 106.50
2019 30,804.97 28,834.41 106.83
Interpretation:
The above table and graph the total asset turnover ratio is fluctuating year by
year. In the year 2010 it was 282.90 and it decreased to 178.99 during 2011. In the year 2012
it was decreases to 175.54 and during 2013 it was 158.1. In the year 2014 it was decreased to
131.68 and during 2015 it increased to 138.53. In the year 2016 it increases to 106.70 .In the
year 2017 it decreases to 116.50 and in the year 2019it was 106.83. The company has to
increase its revenue from its assets to maintain its assets turnover ratio.
5.FIXED ASSET TURNOVER RATIO:

It is the ratio of sales to the value fixed assets. It
indicates how well the business is using its fixed assets to generate sales.
Fixed Asset Turnover Ratio= Net Sales

___________
[Date]
62
Fixed assets
Year Net sales Fixed Assets Fixed Asset Turnover Ratio
2010 11,543.16 1,933.17 5.97
2011 16,429.09 1,536.51 10.69
2012 19,594.65 1,527.08 12.83
2013 20,041.99 2,100.71 9.54
2014 20,158.29 2,150.48 9.37
2015 21,614.27 2,172.18 9.95
2016 23,883.20 2,138.31 11.17
2017 23,088.03 2,043.95 11.30
2018 26,775.53 1,934.80 13.84
2019 30,804.97 1,811.96 17.00
Interpretation:
The above table and graph the fixed asset turnover ratio are fluctuating year
by year .In the year 2010 it was 5.9. It increased to 10.69 ,during 2011. In the year 2012 in
increased to 12.83. and during 2013 it decreased to 9.54 . In the year 2014 it was 9.37 and
during 2015 it was 9.95 . In the year 2016 it increases to 11.16 ,it was 11.129 during 2017 . In
the year 2018 increases to 13.83 . Lastly during 2019 it increases to 17.
6.Average Payment Period:

365 days
____________
A\C Payables Turnover
[Date]
63
Year 365Days A/C payable turnover Average payment period

2010 365 5.84 62.50
2011 365 6.36 57.39
2012 365 6.83 53.41
2013 365 6.76 54.02
2014 365 6.50 56.18
2015 365 7.57 48.22
2016 365 8.16 44.73
2017 365 7.11 51.37
2018 365 6.14 59.47
2019 365 5.70 64.09
Interpretation:
The above table and graph the average payment period is fluctuating year by
year. In the year 2010 it was 62.50 , during 2011 it decreased to 57.39. In the year 2012 it
was decreased to 53.41 and it was 54.01 during 2013. In the year 2014 in increased to 56 and
during 2015 it decreased to 48.22 . In the year 2016 it was 44.73 .In the year 2017 it was
increased to 51.37 and it was increased to 59.46 during the year 2018. Lastly during 2019 it
was 64.09.
7.Average Collection Period:

365 days
A/C Recievable Turnover
[Date]
64
Year 365Days A/C receivable turnover Average collection period

2010 365 25.53 14.30
2011 365 34.58 10.56
2012 365 34.30 10.64
2013 365 21.43 17.03
2014 365 17.33 21.06
2015 365 19.38 18.83
2016 365 22.19 16.45
2017 365 17.59 20.75
2018 365 13.60 26.83
2019 365 9.32 39.17
Interpretation:
The above table and graph the average collection period is fluctuating year by
year. In the year 2010 it was 14.29. and during 2011 it decreased to 10.55. In the year 2012 it
was 10.64 and during 2013 in increased to 17.03. In the year 2014 it was increased to 21.06
,it decreases to 18.82 during 2015 . In the year 2016 it was decreased to 16.45 and during
2017 increases to 20.74 ., during the year 2019 it increases to 26.83. In the year 2019 it
increases to39.16.
C.PROFITABILITY RATIO:
The profitability ratio of the firm can be measured by calculating various
profitability ratios.
Following profitability ratios are under:
1. Gross profit margin or ratio
2. Net profit margin or ratio
[Date]
65
3. Return on Equity
4. Return on Asset
1.GROSS PROFIT MARGIN OR RATIO
It measures the relationship between gross profit and sales. It is calculated by dividing gross
profit by sales.
Gross profit margin or ratio = Gross profit X 100
Net sales
Year Gross profit Net sales Gross profit ratio
2010 2308.04 11543.16 20
2011 4440.36 16429.09 27
2012 4053.85 19594.65 21
2013 4277.8 20041.99 21
2014 4655.69 20158.29 23
2015 4429.73 21614.27 20
2016 5679.94 23883.2 24
2017 5588.95 23088.03 24
2018 5934.72 26775.53 22
2019 6960.06 30804.97 23
Interpretation:
The above table and graph the gross profit ratio is fluctuating year by year. In the
year 2010 it was 20 , during 2011 it was 27.In the year 2012 it decreased to 21 , it was
21 during the year 2013. In the year 2014 it increased to 23 and in the year 2015 it
decreased to 20. In the year 2016 it increased to 24 and in the year 2017 it was 24. In
the year 2018 it decreased to 22 . in the year2019 it increased to 23.
[Date]
66
2. NET PROFIT MARGIN OR RATIO

It measures the relationship between net profit and sales of a firm. It indicates management‟s
efficiency in manufacturing, administrating, and selling the products. It is calculated by
dividing net profit after tax by sales.
Net profit margin or ratio = Net profit X 100
Net Sales
Year Net Profit Net sales Net Profit Ratio
2010 1594.6 11543.16 13.81
2011 3454.89 16429.09 21.03
2012 3045.4 19594.65 15.54
2013 3132.69 20041.99 15.63
2014 3380.28 20158.29 16.77
2015 3025.63 21614.27 14.00
2016 4061.24 23883.2 17.00
2017 4079.49 23088.03 17.67
2018 4218.85 26775.53 15.76
2019 4927.61 30804.97 16.00
[Date]
67
Interpretation:
The above table and graph net profit ratio is fluctuating year by year. In the year
2010 it was 13.81 . It increases to 21 during the year 2011 , it was decreased to 15.54 in the
year 2012. In the year 2013 it was 15.63 . In the year 2014 it increased to 16.76 and it
decreased to 13.98 during the year 2015. In the year 2016 it was 17 and during the year 2017
it was 17.66. In the year 2018 in decreased to 15.75. In the year 2019 in decreased to 15.99.
3.RETURN ON EQUITY:
Net Profit X100
Shareholders fund
Year Net Income Shareholders Fund Return on Equity

2010 1,597.22 2,716.93 58.79
2011 3,454.89 4,807.22 71.87
2012 3,045.40 6,081.72 50.07
2013 3,132.69 8,065.30 38.84
2014 3,380.28 10,167.26 33.25
2015 3,025.63 11,095.32 27.27
2016 4,061.24 14,020.31 28.97
2017 4,079.49 17,856.57 22.85
2018 4,218.95 20,425.24 20.66
2019 4,927.61 23,233.81 21.21
[Date]
68
Interpretation:
The above table and graph the return on equity is fluctuating year by year. In
the year 2010 it was 58.78. In the year 2011 it increased to 71.86 and during 2012 it
decreased to 50. In the year 2013 in decreased to 38.84 and in the year 2014 it was 33.24 . In
the year 2015 it decreased to 27.26 and in the year 2016 it was increased to 28.96. In the
year 2017 it was decreased to 22.84. In the year 2018 it was decreased to 20.65 and in the
year 2019 it was decreased to 21.20.
4.RETURN ON ASSET:
Net Profit X 100
Total assets
(Note: Below figures are in Cr.)
Year Net Profit Total Asset Return On Asset

2010 1,594.60 4,080.03 39.08
2011 3,454.89 5,184.67 66.64
2012 3,045.40 11,165.42 27.28
2013 3,132.69 12,675.73 24.71
2014 3,380.28 15,307.76 22.08
2015 3,025.63 15,965.60 18.95
2016 4,061.24 17,240.37 23.56
2017 4,079.49 21,637.62 18.85
2018 4,218.85 25,141.00 16.78
2019 4,927.61 28,834.41 17.09
[Date]
69
Interpretation:
The above table and graph the return on asset ratio is fluctuating year by year. In
the year 2010 it was 39.14 .In the year 2011 it increased to 66.36 and during year 2012 it
decreased to 27.30 . In the year 2013 it decreased to 24.71 and it was 22.08 during 2014. In
the year 2015 it reduced to 19.26 and during 2016 it increased to 23.55. In the year 2017 it
reduced to 18.85 and in the year 2018 it reduced to 16.78. In the year 2019 it increased to 17.
D .SOLVENCY RATIO:
The solvency or leverage ratios throws light on the long term solvency of a firm reflecting it‟s
ability to assure the long term creditors with regard to periodic payment of interest during the
period and loan repayment of principal on maturity or in predetermined instalments at due
dates.
There are thus two aspects of the long-term solvency of a firm.
a. Ability to repay the principal amount when due
b. Regular payment of the interest.
The ratio is based on the relationship between borrowed funds and owner‟s capital it is
computed from the balance sheet, the second type are calculated from the profit and loss a/c.
The various solvency ratios are
1. Debt Equity Ratio
2. Proprietary (Equity) Ratio
[Date]
70
1.DEBT EQUITY RATIO:

Debt equity ratio shows the relative claims of creditors (Outsiders) and owners (Interest)
against the assets of the firm. Thus this ratio indicates the relative proportions of debt and
equity in financing the firm‟s assets. It can be calculated by dividing outsider funds (Debt)
by shareholder funds (Equity)
Debt equity ratio = Outsider Funds (Total Debts)
Shareholder Funds or Equity
Year Long term debts Shareholdres fund Debt Equity Ratio
2010 1.69 2,716.93 0.00
2011 29.71 4,807.22 0.01
2012 416.15 6,081.72 0.07
2013 444.59 8,065.30 0.06
2014 409.58 10,167.26 0.04
2015 393.38 11,095.32 0.04
2016 438.96 14,020.31 0.03
2017 568.18 17,856.57 0.03
2018 604.34 20,425.26 0.03
2019 726.81 23,233.82 0.03
Interpretation:
The above table and graph the debt equity ratio is fluctuating year by year .
In the year 2010 it was 0.0006 and during 2011 it was 0.0061 . In the year 2012 it increased
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to 0.0684 and during year 2013 it decreased to 0.055 . In the year 2014 it decreased to 0.040.
, in the year 2015 it was decreased to 0.035. In the year 2016 it was decreased to 0.0313 , and
in the year 2017 it was 0.0318 . In the year 2018 it was decreased to 0.026 and in the year
2019 it increased to 0.031.
2.PROPRIETORY RATIO:
This ratio indicates the proportion of total assets financed by owners. It is calculated by
dividing proprietor (Shareholder) funds by total assets.
Proprietory ratio= Shareholders Fund
Total Assets
Year Shareholders Fund Total assets Proprietory Ratio
2010 2,716.93 4,080.00 0.67
2011 4,807.22 9,178.75 0.52
2012 6,081.72 11,162.41 0.54
2013 8,065.30 12,675.73 0.64
2014 10,167.26 15,307.76 0.66
2015 11,095.32 15,965.60 0.69
2016 14,020.31 17,240.37 0.81
2017 17,856.57 21,637.62 0.83
2018 20,425.24 25,141.00 0.81
2019 23,233.81 28,834.41 0.81
[Date]
72
Interpretation:
The above table and graph the proprietory ratio is fluctuating year by year. In the year
2010 it was 0.66 , in the year 2011 it was decreased to 0.52 . During the year 2012 it
was increased to 0.54 and in the year 2013 it was increased to 0.63 .In the year 2014
it was increased to 0.66 , it was increased in the year 2015 to 0.69 . During 2016 it
was decreased to 0.81 and in the year 2017 it was increased to 0.82. During the year
2018 it was decreased to 0.81. In the year 2019 it was decreased to 0.80.
Findings:
 As per the analyses of the study using current ratio , there is fluctuations from last 10
years it was lowest in 2010.
 As per the study using quick ratio , there is fluctuations from last 10 years it was
highest in 2010 and presently is lowered , the company has to operate on it.
 As per cash ratio there are fluctuations from last 10 years , it was highest in 2010.
 According to study using inventory turnover ratio ,it is increasing frequently . In 2019
it has the higher of 19.49%. And it is beneficiary for the company.
 There has to be improvements in account recievables turnover ratio and account
payable turnover ratio, and average collection and payment period.
 In total asset turnover ratio there is continuous decline .Presently it is lower in 2017 to
2019 its is 106.83% in 2019 and 106.50% in 2018 more improvements have to be
undertaken by the company in total asset turnover ratio .
[Date]
73
 In fixed assets turnover ratio there is highest in 2019(17.00%) and this has to be
continued by the company to maintain the profits.
 As per profitability ratios such as, gross profit ratio and net profit ratio it is good but
company has to improve in ratio such as return on equity and return on asset.
 There is increase in 2011(71.86%) and totally decrease in 2017(22.84%).
Decrease in return on equity decreases the profit and increases the shareholders
value , the company has to make more income.
 It is increase in 2011 (66.63%) and decrease during 2018 (16.78%). The company has
to make maximum use of their assets to generate more income to atleast cover their
cost of capital , it is not good sign for company if it has lower return on asset.
 The proprietory ratio is good for the company .
Suggestions:
The company is performing well but still some areas it has to improved and the following
suggestions to be considered which has to be improved and will prove to be beneficial to
company
 The company has to improve their current assets to meet current obligations and
decrease their liabilities. It has to improve their cash management as related to cash
ratio .As liquidity position shows funds are not up to standmark , since they can still
increase liquidity position.
 The company has to lay the proper control in cost of production which helps in
increasing the gross profit of company.
 The company has to make improvements in net profit to have efficient business
functioning by looking at its gross margin and manage its business .
[Date]
74
 Account payable and recievables turnover ratios is in decreasing position , to have

proper position it has to be improved.
 Debt equity ratio is having positive results. It is good.
Conclusion:
The project is on the topic “Financial Performance Analyses” of the company Bajaj
Automobile Ltd. The data analysed and interpreted is for 10 years i.e, from the year 2010 to
2019. Study , analyses and interpretation of the data involved mainly four types of ratios.
By the assessment of data analyses and interpretation and findings and suggestions, it is
observed that company is performing well in beginning of the years , but the company turned
into loses during the end period and the result of profit is decreased . The company has to
cope up with such losses and gear up with the profitability , efficiency and goodwill of the
company with maximum usage of assets , funds and income.
[Date]
75
Most of the ratios of company are performing good and the companies management power is
also good .But the company has to work on its financial operations and functioning , and in
turn the ratios that are sick in its performance will also perform well.
Finally we conclude that Bajaj Auto ltd , has efficient management team and is one amongst
the top automobile companies in India. This company majorly is operating for the fare price ,
safety measures , and quality in the products because of which this is a leading company.
ANNEXURE
[Date]
76
[Date]
77
[Date]
78
Balance sheet as on 31-4-2010 and 2011

PARTICULARS (RS in Crores) Mar-10 Mar-11
1.Equity &Liabilty
1)shareholder fund
a)Share Capital 144.68 289.37
b)Reserves & Surplus 2572.25 4517.85
2)Minority interest 0.38 0.29
3)Non-current Liabilities
a)Long term borrowings 1325.6 133.88
b)Deffered tax liabilities 1.69 29.71
c)Other longterm liabilities 0 193.71
d)Long term provisions 0 125.54
4)Current Liabilities
a)Short term borrowings 35.43 180.14
b)Trade payables 1576.33 1797.66
c)Other current liabilities 455.46 479.34
d)Short term provisions 2249.49 1431.26
TOTAL 8361.31 9178.75
2.Assets
1)Non-current assets
a)Fixed assets 1933.17 1556.51
b)Non-current investments 3445.23 3524.09
c)Deffered tax assets 33.82 36.9
d)Long term loans & advances 0 227.71
e)Other non-current assets 0 770.33
2)Current Assests
a)Current investments 0 686.83
b)Inventories 458.39 576.25
c)Trade receivables 271.91 338.74
d)Cash & cash equivalents 107.3 247.54
e)Short term loans & advances 2111.49 997.57
f)Other current assets 0 216.28
TOTAL 8361.31 9178.75
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79
[Date]
80
[Date]
81

1.Equity &Liabilty
1)shareholder fund
2)Minority Interest 0.17 0
c)Other longterm liabilities 157.07 122.06
d)Long term provisions 113.16 136.16
a)Short term borrowings 25.44 27.14
TOTAL 11165.42 12675.73
2.Assets
c)Deffered tax assets 39.03 33.41
d)Long term loans & advances 601.66 463.16
e)Other non-current assets 436.03 549.27
2)Current Assests
a)Current investments 1096.6 2711.33
f)Other current assets 295.59 212.32
TOTAL 11162.41 12675.73
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82
STATEMENT OF PROFIT & LOSS AS AT 31st MARCH 2014

PARTICULARS AMOUNT (Cr)
1)Revenue from operation 20158.29
2)Other income 38.81
3)Total Revenue(l) 20740.1
4)Expenditure:
Cost of raw materials and components consumed 12936.57
Purchase of trade goods 959.23
Changes in inventories of finished goods,Work-in -progress and traded goods 12.57
Employee benefits expense 731.76
Finance cost 0.82
Depreciation 181.32
Other expences 1453
Expenses included in in above items, capitalised 64.9
TOTAL EXPENSE (ll) 16185.23
5)Profit before exceptional & extraordinary items & tax(l-ll) 4654.87
6)Exceptional items 0
7)Profit before extra-ordinary items & tax
8)Extra orinary items 0
9)Profit before tax 4654.87
10)Tax expenses: 1390.1
11)Profit & loss for the period from continuing operation 3380.28
12)Earnings per share
Basic & diluted 116.8
[Date]
83

4)Expenditure:
Finance cost 6.49
Depreciation 267.46
Other expences 1811.17
6)Exceptional items 340.29
7)Profit before extra-ordinary items & tax 0
[Date]
84

1.Equity &Liabilty
1)shareholder fund
2)Minority Interest 0.06 0.04
a)Short term borrowings 0 0
TOTAL 15307.76 15965.6
2.Assets
c)Deffered tax assets 0 0
2)Current Assests
TOTAL 15307.76 15965.6
[Date]
85

4)Expenditure:
Excise duty 1296.68
Finance cost 1.05
Depreciation 307.16
[Date]
86

4)Expenditure:
Excise duty 1321.35
Finance cost 1.4
Depreciation 307.29
Basic & diluted 1410
[Date]
87

1.Equity &Liabilty
1)shareholder fund
2)Minority Interest 0 0
a)Long term borrowings 0 0
c)Other current liabilities 641 855.93
TOTAL 17240.37 21637.62
2.Assets
2)Current Assests
f)Other current assets 1049 1096.36
TOTAL 17240.37 21637.62
[Date]
88
STATEMENT OF PROFIT & LOSS AS AT 31st MARCH 2018 AMOUNT (Cr)

PARTICULARS
4)Expenditure:
Excise duty 398.34
Finance cost 1.31
Depreciation 314.8
[Date]
89

4)Expenditure:
Excise duty 0
Finance cost 4.48
Depreciation 265.69
[Date]
90

1.Equity &Liabilty
1)shareholder fund
2)Minority Interest 0 0
a)Long term borrowings 0 0
TOTAL 25141 28834.41
2.Assets
2)Current Assests
TOTAL 25141 28834.41
[Date]
91
BIBLIOGRAPHY
WEBSITE: www.bseindia.com
Annual Reports:
2010-11,2011-12,2012-13,2013-14,2014-15,2015-16,2016-17,2017-18,2018-
2019.
Bajaj Auto ltd. Brochure.
Books: Financial Management.
[Date]
92
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1

Financial Performance Analyses

(Affiliated to Karnatak University, Dharwad

KARNATAK UNIVERSITY, DHARWAD

It is a matter of great pleasure to acknowledge those personalities who have inspired,

Date: 31/07/2020 UMERABANU.M.D

I, UMERABANU.M.D, hereby declare that this project report entitled “Financial

I confirm that this report truly represents my work undertaken as a part of my

Sl. No. Content Page No.

6 Data Analysis and Interpretation

Need for study:

Scope of the study:

 Return on asset is highest in 2011(71.8%) and there after it is continuously

What is Automobile Industry?

Post -1992 liberlisation:

In India, the automobile industry provides direct employment to about 5 lakh

UNORGANISED AUTO SECTOR IN INDIA:

Competition in Automobile Industry –

Top largest Automobile manufacturing companies in the world-

Trends transforming the Automotive Industry –

Electrified – the transition to emissions-free mobility will become a global requirement.

How new technologies have changed the automotive industry-

However, the growth of autonomous technologies and ongoing computers have

o International Centre for Automotive Technology (ICAT) ,Manesar

About BS4 and BS 6:

Petrol Passenger Nitrogen <60mg> <80mg>

2008 -September - Bajaj Platina 125 DTS-Si launched

2005 -December -Bajaj Discover launched

2004- October -Bajaj Discover DTS-I launched

2003- October - Bajaj Pulsar DTS-I is launched , 107,115

2001- November - Bajaj Auto launches its latest offering in the

2000 - The Bajaj Saffire is introduced.

1999 - Caliber motorcycle notches up 100000 sales in

1998 - Production commences at Chakan plant.

1997 - The Kawasaki Bajaj Boxer and the RE

1995 - November 29 - Bajaj Auto is 50. Agreements signed with Kubota.

millionth vehicle. One million vehicles were produced

1994 - The Bajaj Classic is introduced.

1991 -The Kawasaki Bajaj 4S Champion is introduced.

1990 - The Bajaj Sunny is introduced.

1986 - The Bajaj M80 and Kawasaki Bajaj KB100 2005

1985 - November 5 - The Waluj plant inaugurated by erstwhile

1981 - The Bajaj M-50 is introduced.

1977 - The Pear Engine Autorickshaw is introduced.

Top Competitors of Bajaj Auto Ltd-

The significance of financial statement not lies in their preparation but in

 Study of connection among the items of financial statements.

Uses \Advantages of Analyses of Financial Statements:

 It helps in determining financial strength or weakness of the firm.

TOOLS OF FINANCIAL ANALYSES OR METHODOLOGY OF ANALYSES

1. Comparative Financial Statement:

Types of Comparative Statement:

Following are the steps for pre-pare comparative balance sheet.

STEPS IN RATIO ANALYSIS:

VARIOUS ACCOUNTING RATIOS:

ANALYSES AND INTERPRETATION

Comparative Financial Statement:

Comparative Balance Sheet (CBS)

TOTAL 8361.31 9178.75 817.44 -20.29273494

Particulars 2012 2013 Increase/Decrease Increase/Decrease

Particulars 2014 2015 Increase/Decrease Increase/Decrease

Particulars 2016 2017 Increase/Decrease Increase/Decrease