“A STUDY OF FINANCIAL STATEMENT ANALYSIS OF

CHASSIS BRAKES INTERNATIONAL COMPANY”

Submitted By-Lokesh Talegoankar

Roll No-10
Class TY-BBA
Submitted To-DR. Richa Modiyani Mam
SSBT’s College Arts,Commerce And Sciecnce,
Bambhori, Jalgaon
CONTENT

 Introduction
 Company Profile
 Objectives & Scope
 Research Methodology
 Data Analyse
 Finding
 Suggestions
INTRODUCTION

Financial statement analysis is the process of

analysing a company's financial statements for
decision-making purposes. External stakeholders
use it to understand the overall health of an
organization as well as to evaluate financial
performance and business value. Internal
constituents use it as a monitoring tool for
managing the finances.
 
COMPANY PROFILE

Chassis Brakes International is one of world’s largest manufacturers of automotive braking

solutions. Its products – disk brakes, drum brakes, parking brakes and rotors are
dedicated to passenger cars and light commercial vehicles through original equipment
manufacturers.

SinceJune 2012, the company has been part of KPS Capital Partners, LP portfolio
companies.

Chassis Brakes International has a global footprint with operations in Europe, Asia, South
Africa, North and South America. The company employs 5,200 people in 15 countries at
13 manufacturing sites and 11 engineering centres or sales offices. The company is
recognized for its processes, including casting, machining, coating and assembling, its
technical performance, its NVH (Noise, Vibration and Harshness) and its reliability. It
allows to receive numbers of quality awards and performance awards from customers.  
• Chassis Brakes International benefits from a strong expertise gained
throughout more than 90 years in the foundation brakes industry under
different banners.
 OBJECTIVES & SCOPE

• To study the concept of financial statements analysis.

• To analysing the financial statements of FBML.
• To analyse the financial health of the company.
• To study the comparative analysis of ROE and other ratios
SCOPE
 To study the financial statement analysis of Foundation
Brakes Manufacturing Pvt Ltd. with considering many
factors within the company. 
 The scope of the study is confined to an analysis of
financial statement of FBML with special reference for
the period 201 to 2018-19. 
 This study will be helpful to analyse the financial
position of the company and identify the wealth of the
shareholder.
RESEARCH METHODOLOGY

 Research type:
 Study is analytical in nature on secondary data retrieved from the balance
sheets of foundation brakes manufacturing ltd. 
 [7.2]Data collection method

 Primary data: - The information Collected from Personnel Interaction with

staff.
 Secondary Data- Files, annual reports, periodicals, manuals and text book.
Which have already been passed through the statistical process are the
secondary data used. 
 Field work- This was under taken individually to collect information
regarding the study by visiting following sections.
 Accounts department- Remaining all the information was obtained from
accounts department through section officials.  
 Statistical tool / techniques

 Financial ratios

 Financial statement of the company

 DATA ANALYSE

Interpretation
From above graph table, it is found that
Equity Ratio show a increasing trend. The
ratio is in year 2018-2019 is 0.72 and it
increase in the year 2019-2020 with
0.73 .And in year 2020-2021 is increase
again with 0.77. It represent that the
company has a manage a capital
effectively and it show organization is all
around stronger financially position
 Interpretation:

From the above table, it is found

that the debt equity ratio shows a
increasing trend. The ratio is in the
year 2018-2019 is 0.38 and it is
decreasing in the year 2019-2020
with
0.43 . And increased in year 2020-
21 is 0.50 . It is represent that the
company debt increasing by a
year but ratio is lower than 1 so it
indicate good financial status.
Interpretation:
 
 
The above graph represent that the return
on equity in the year 201-19 is 0.25 and
increased in year 2019-20 and 2020-21
respectively as 0.17 to 0.13 . With
decreasing in the net profit of the
company that reduces the return on equity
to decrease the return of shareholders
Interpretation:
 
With the above graph shows
the interest coverage ratio in
year 2018-19 is 177.01 it
decreases in year 2019-20 is
164.41. It shows the changes in
the amount of interest and
EBIT with respectively. In the
year 2020-21 is 94.64 , it
decreases only because of the
interest cost are Increases and
net income also decrease
Interpretation:
 
From above graph and show the
return on asset ra-tio show
decreasing trend. The ratio in year
2018-2019 is 25.65 and it deacrease
by 17.65 in year 2019-2020. The
return on asset ratio decrease again
in year 2020-2021 by 13.35. it mean
falling ROI indicates the company
might have over invested in asset
that have failed to produce revenue
growth
Interpretation:
With the above graph represent
the reserve capital ratio in year
2018-19 is 308.36 and in year
2019-20 is increased 313.21 it
again increasing year 2020-21 is
331.41 due to change increase in
the reserve and surplus of the
company ,This ratio establishes
the relationship between the
reserves and equity share capital.
It indicates the amount retained
by the firm for future
growth. Higher the ratio better
will be the position of the firm
Interpretation:
 
From the above table, it is
represent that the fixed assets
turnover ratio in the year
2018-2019 with 6.62 in it
decrease in the year 2019-2020
with 5.20 . And increased in
year 2020-21 is 5.44 times, it
has been found during the
study that the ratio fluctuates.
Hence, the performance of the
company is improved as it
properly utilized its fixed
assets in generating the
revenue.
Interpretation:
With the above graph
represent the current assets
proprietor ratio in the year
2018-19 is 0.65 t and it
increases in year 2019-20
and 2020-21 as 0.75 and
0.89 respectively. With
increasing the value of
current assets that reflect
the value of current assets
should be increased and
kept constant in order to
overcome the fluctuating
trend and to have a good
financial performance in
future.
FINDING
 The Equity ratio is in year 2018-2019 is 0.72 and it increase in the
year 2019-2020 with 0.73 .And in year 2020-2021 is increase again
with 0.77. It represent that the company has a manage a capital
effectively and it show organization is all around stronger financially
position
 
 The debt equity ratio is in the year 2018-2019 is 0.38 and it is
decreasing in the year 2019-2020 with.43 . And increased in year
2020-21 is 0.50 . It is represent that the company debt increasing
by a year but ratio is lower than 1 so it indicate good financial
status. 
 The return on equity ratio in the year 201-19 is 0.25 and increased
in year 2019-20 and 2020-21 respectively as 0.17 to 0.13 . With
decreasing in the net profit of the company that reduces the return
on equity to decrease the return of shareholders
SUGGESTIONS

 As the above project, every management wants to

maximise profit of the business and Maximization of
shareholders wealth. As per the above all the ratio of the
FBML is favourable in nature that represents the well
financial position of the company only because the
company has the low debt with respect to its net profit.
Perhaps the suggestion is that:
 
 Company should maintain the proper debt equity ratio and
it can adopt the revised Structure of borrowing up to 25%
to get the tax benefit and maximise the return on equity of
the investment and to increase the profit of the company.
THANK YOU