resentat|on on resentat|on on

8us|ness va|uat|on 8us|ness va|uat|on

of of
Marut| Marut| Suzuk| Suzuk|
repald by repald by
Pardlk Pardlk n n Sallya Sallya
anka[ anka[ n n kaLarlya kaLarlya
vlpul vlpul L L SanLokl SanLokl
vlkram vlkram MehLa MehLa
uhaval uhaval aLel aLel
uharamvlr uharamvlr 1ank 1ank
GUIDLD 8
rof Ms Drasht| Shah
8nAGWAN MAnAVIk CCLLLGL CI MANAGLMLN1
bouL Company
W Marut| Suzuk| Ind|a L|m|ted ls a subsldlary
company of !apanese auLomaker Suzukl MoLor
CorporaLlon lL ls lndlas largesL passenger car
company accounLlng for over 43 of Lhe
domesLlc car markeL 1he company offers a
compleLe range of cars from enLry level MaruLl
800 and lLo Lo haLchback 8lLz SLar SwlfL
Wagon8 LsLlllo and sedans uZlre Sx4 ln Lhe C
segmenL MaruLl Lco and SporLs uLlllLy vehlcle
Crand vlLara
ConL
W lL was Lhe flrsL company ln lndla Lo mass
produce and sell more Lhan a mllllon cars lL ls
largely credlLed for havlng broughL ln an
auLomoblle revoluLlon Lo lndla lL ls Lhe
markeL leader ln lndla and on 17 SepLember
2007 Marut| Udyog L|m|ted was renamed as
Marut| Suzuk| Ind|a L|m|ted 1he companys
headquarLers are locaLed ln new uelhl
uslness valuaLlon
W IN1kCDUC1ICN
W uslness valuaLlon ls a process and a seL of procedures used
Lo esLlmaLe Lhe economlc value of an owner's lnLeresL ln a
buslness
W valuaLlon ls used by flnanclal markeL parLlclpanLs Lo
deLermlne Lhe prlce Lhey are wllllng Lo pay or recelve Lo
consummaLe a sale of a buslness
W ln addlLlon Lo esLlmaLlng Lhe selllng prlce of a buslness Lhe
same valuaLlon Lools are ofLen used by buslness appralsers Lo
resolve dlspuLes relaLed Lo esLaLe and glfL LaxaLlon dlvorce
llLlgaLlon allocaLe buslness purchase prlce among buslness
asseLs esLabllsh a formula for esLlmaLlng Lhe value of
parLners ownershlp lnLeresL for buysell agreemenLs and
many oLher buslness and legal purposes
sseLs ased valuaLlon
W 1he sseL pproach (lnLrlnslc value) ls based on Lhe
premlse LhaL lL ls generally posslble Lo llquldaLe Lhe
properLy planL and equlpmenL (L) asseLs of a
company and afLer paylng off Lhe companys llablllLles
Lhe neL proceeds would accrue Lo Lhe equlLy of Lhe
company valuaLlon of asseLs based on llquldlLy does
noL yleld beLLer resulLs lf Lhe falr markeL value of asseLs
ls ln excess of value of lLs asseLs on a llquldaLed basls
neL sseLs vallable Lo LqulLy Share holders
number Cf LqulLy Share CuLsLandlng
lnanclal daLa %ks In Crore)
W LqulLy share caplLal 14430
W neL block 332940
W CaplLal worklnprogress 142860
W lnvesLmenLs 310670
W CurrenL asseLs loans advances 644310
W currenL llablllLles provlslons 433100
W number of equlLy shares ouLsLandlng (Lacs)
288910
W reference dlvldend 00
ConL
W lndusLry raLe 23 (ssumed)
W roflL of lasL 3 years 8s ln Cr
ear 2011 2010 2009 2008 2007
roflL
228860 249760
121870 173080 136200
CalculaLlon
art|cu|ars
ks In Cr
lxed assLs (neL lock) 332940
lnvesLmenLs 310670
CaplLal Work ln rogress 142860
CurrenL sseLs 644310
Less) CurrenL LlablllLles 433100
neL sseLs 141769
Less) reference ulvldend 000
neL sseLs vallable Lo LqulLy Share Polder 141769
W Intr|ns|c va|ue er Share
141769
* 100 8s 49070
288910
W Va|ue of company
49070 * 288910
8s 1417681 cr
100
Larnlng ?leld MeLhods
W 1he LoLal amounL of proflL belongs Lo
shareholders wheLher dlsLrlbuLed as dlvldend
or noL 1he undlsLrlbuLed proflL used Lo
flnance Lhe growLh of buslness helps Lo
lncrease Lhe value of Lhe shares and ls [usL as
much a parL of Lhe shareholders reLurn on Lhe
lnvesLmenL as Lhe dlvldend 1he value of
company on Lhe earnlng yleld basls ls Lhe
value of Lhe sLream of proflL or earnlngs wlLh
Lhe company ls expecLed Lo generaLe
ConL
W CalculaLlon of an L?M lnvolves 3 sLeps
SLep 1 predlcL Lhe fuLure malnLalnable proflL of Lhe
company belng valued
SLep 2 ldenLlfy Lhe requlred earnlng yleld by
reference Lo Lhe resulL of slmllar company
SLep 3 pply Lhe earnlng yleld Lo fuLure proflL uslng
followlng formula
value of buslness company's expecLed fuLure proflLs
lndusLrles normal earnlng yleld
CalculaLlon
part|cu|ar Amount |n Cr
1oLal roflLs of LasL 3 ?ears 929770
Less) uep 338490
roflLs afLer uep 391280
number of ?ears 03
verage roflLs 118236
Less) ref Share ulv 00
roflLs vallable Lo LqulLy share holders 118236
CalculaLlon
W Companles 8C8 LxcepLed roflLs / Lq CaplLal * 100
118236 / 14430 *100
81838 or 818
W value per Share Companles 8C8/ lndusLrles normal raLe
*ald up value
818 / 667 *10
8s 1226
W value of company 1226 * 288910 8s 3342036 Cr
lbllography
W ooks
W SLraLeglc lnanclal ManagemenL by 8avl M klshor
W WebslLe
W wwwmaruLlsuzuklcom
W wwwmoneyconLrolcom
W wwwredlffcom
W hLLp//wwwmoneyconLrolcom/flnanclals/maruLlsuzukl
lndla/balancesheeL/MS24
1hanL 1ou...