MAULANA AZAD NATIONAL URDU UNIVERSITY HYDERABAD

A PROJECT REPORT ON
“ FINANCIAL STATEMENT ANALYSIS OF
BAJAJ ELECTRICALS LTD AND VALUE INDUSRIES LTD
FOR THE PERIOD 2016 – 2019”
SUBMITTED TO

DEPARTMENT OF MANAGEMENT & COMMERCE

SCHOOL OF COMMERCE & BUSINESS
MANAGEMENT

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

OF THE DEGREE OF MASTER OF COMMERCE
(M.COM)
GUIDED
SUBMITTED BY
BY MR. NISSAR
AFREEN BEGUM HUSSAIN
19MCCM010HY 1

JUNE 2021
OVERVIEW
 Introduction
 Objective of the study
 Industry Study
 Scope of the study
 Research Methodology
 Limitations of the study
 Company Profile
 Theoretical Background
 Data Analysis & Interpretation
 Findings
 Suggestions 2

 Conclusion
INTRODUCTION

 Finance is defined as the provision of money when it is required. Every enterprise needs finance
to start and carry out its operation. Finance is the life blood of an organization. So, finance should
be managed effectively. Financial Statements are prepared primarily for decision making.

 Financial statement analysis refers to the process of determining financial strength and weakness
of the firm by properly establishing strategic relationship between the items of the Balance Sheet
and Profit & Loss Account. There are various methods and techniques used in analyzing financial
statements, such as comparative statements, trend analysis, common size statement, schedule of
changes in working capital, fund flow and cash flow analysis, cost volume profit analysis and
ratio analysis and other operative data. The analysis of financial statement is used for decision
making by various parties. First task is to analyse and select the information which is requiring
taking decision. Second task is to arrange the information in a way to highlight significant
relationship. Final task is the interpretation and drawing of inferences and conclusions. 3
INDUSTRY STUDY
 The Consumer Durables industry consists of durable goods and appliances for domestic use such as
televisions, refrigerators, air conditioners and washing machines. Instruments such as cell phones and
kitchen appliances like microwave ovens are also included in this category. The sector has been witnessing
significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate
and housing demand, greater disposable income, and an overall increase in the level of affluence of a
significant section of the population. The industry is represented by major international and local players
such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.

 The consumer durables industry can be broadly classified into two segments: Consumer Electronics and
Consumer Appliances. Consumer appliances can be further categorized into Brown Goods and White
Goods. The consumer durables industry in India is set for sustained growth over the long term, fueled by
favorable consumer demographics, overall growth in services and industrial sectors and infrastructure
development in suburban and rural areas. Several Indian and MNC players are looking to strengthen their
presence in India to leverage this opportunity. Success in the long-term will require firms to develop a wide
and robust distribution network, differentiate their products in areas of relevance to the consumer and
innovate in the areas of promotion, product financing, etc.
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OBJECTIVES OF THE STUDY
 The objectives of the Project are as follows: -
 To study and understand the basic concept of Financial
Analysis.
 To Compute different Accounting Ratios of the selected
Companies for four years 2016-2019
 To analyse and interpret the ratios computed for
understanding profitability positions of selected companies
in last four years.
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SCOPE OF THE STUDY

 The study is based on the annual reports of the

company for the period of 5 years 2016-2019.
 The project scope is limited to the secondary data
only for the period 2016-19.

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RESEARCH METHODOLOGY

DATA COLLECTION

SECONDARY DATA

 The source of data for the Project is secondary. It is collected from the
Annual Reports of the selected companies from their websites. The
theoretical texts have been taken from the standard Text and Reference
Books and Internet.

TOOL
 The tool, which is relevant for the study of Financial Statement Analysis 7
and performance of both companies is Ratio analysis
LIMITATIONS OF THE STUDY

The study was conducted very systematically but

still it has certain limitation as the time available is
not adequate considering National Lockdown since
March 2020. The study is limited to a selected two
companies for studying financial performance of
last four years only

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COMPANY PROFILE

Bajaj Electricals Ltd

 Bajaj Electricals was incorporated on 14 July 1938 as Radio Lamp Works Limited under the
Indian Company Act, 1913 as a public company limited. On 1 October 1960 it was renamed
to Bajaj Electrical Limited. 1964, Matchwell Electricals (India) Limited, ("Matchwell"), a
manufacturer of electric fans became a subsidiary of the Company and subsequently, with
effect from 1 July 1984, the business and undertaking of Matchwell was amalgamated with
the company.
VISION
 “Enhancing quality of life and bringing happiness with sustainability”

MISSION
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 Integrity ,Team Work ,Empowerment, Costumer Delight, Innovation.
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