f.m (term paper)

8/3/2019 F.M (term paper)

1/28

Term Paper

On

Submitted to: Submitted by:

Lalit sir RITESH KUMAR

ROLL NO: B54

SEC: R1003

REG NO: 11004058


2/28

CONTENT

ACKNOWLEGEMENT

INTRODUCTION

History.

Change in share price over a year.

Capital Structure for last 3 years.

Liquidity position.

Balance sheet.

Profit and loss A/C

Credit Rating of company;

IPO/FPO issues made by company during last 5 years;

Related news relevant to company chronologically and its impact on

share price of the company.

Conclusion.

References.


3/28

A C K N O W L E G E M E N T

First of all I would like to thankthe Lovely Professional University to

give me this opportunity to do this project as a part of the M.B.A.

Many people have influenced the shape and content of this project,

and many supported me through it. I express my sincere thanks to

Lalit sir for assigning me a project on Analysing Financial

Statement of Maruti suzuki . Hehas been an inspirational and role

model for this topic. Her guidance and support has made it possible tocomplete the assignment.

I would also like to thank my friends who have helped and

encouraged me throughout the working of this project.

Last but not the least I would like to thank the Almighty for always

helping me.

Ritesh kumar


4/28

Introduction:-

Maruti Suzukiis a market leaderin cars is listed in bse and nse founded in 1981

head quarter new Delhi, India Marutiis a Indian company but Suzukiis a parent

company commands more than 50% cars in india on 17 September

2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited in

which Indian government has a stake of about 18.28% were has Suzuki from

Japan has a stake of about 54.2%. Maruti Suzuki India Limited has always

believed in highest standards of Corporate Governance. Being a listed

Company, every act of the Company, its Board Members and its employees is

the focus of public attention and accordingly, there is a need to reinforceMarutis commitment towards maintaining highest standards of Corporate

Governance. This Code of Business Conduct and Ethics helps ensure

compliance with our standards of business conduct & ethics and also with

regulatory requirements. Maruti Suzukiis India and Nepal's number one leading

automobile manufacturer and the market leader in the car segment, both in

terms of volume of vehicles sold and revenue earned. The BJP-led government

held an initial public offering of 25% of the company in June 2003. As of 10

May 2007, Govt. of India sold its complete share to Indian financial institutions.

With this, Govt. of India no longer has stake in Maruti Udyog.

History:-


5/28

Maruti Suzuki India Ltd., formerly known as Maruti Udyog, is the one of theoldest car manufacturers in India. The company has written 28 years old history

in the rich Indian heritage.Maruti Udyogs inception came in the country in 1981 under the provisions of

the Indian Companies Act, 1956. During this era, there were only

two car models in the name of Indian car industry, Hindustan Ambassadorand Fiat Padmini. Later, Maruti Suzuki made a successful move with its ever

running Maruti 800 in 1983. With the launch of Maruti 80, Indianmanufacturing and carindustry saw a new dawn.

The early 1990s witnessed an era of liberalization, a period when Indian carmarket had become a crucial part of the growing Indian economyAs and when

time was moving the company was coming up with innovations andadvancements. In the year 1991, Maruti Suzuki started cumulativeindigenization of nearly about 65% of all its car models and thereafter

introduced Maruti Suzuki Zen in 1993.

The introduction of Zen and followed by the launch of Maruti Suzuki Esteem in1994, Maruti Suzuki Baleno and Maruti Suzuki WagonR in 1999, and Maruti

Suzuki Alto in 2000. The company also launched another SUV in the Indianmarket known as Maruti Suzuki Grand Vitara in 2003. After these successful

launches by Maruti Suzuki, a world strategic car model, popularly knownas Maruti Suzuki Swift, was introduced in 2005. After that company introduced

a hot, elegant and one of the most comfortable sedan, christened as MarutiSuzuki SX4, in 2007.This is the entire journey of Maruti Suzuki India since the time ofits inception

in 1981. Even further Maruti aims to make compact, fuel efficient, low-

maintenance, and light-weight cars better suited to Indian weather and roadconditions.

Partner for the joint venture

Sanjay Gandhi owned the Maruti Technical Services Limited, which ran into

trouble and was liquidated. After the death of Sanjay Gandhi, the Indira Gandhi

government assigned a delegation of Indian technocrats to hunt for a

collaborator for the project. Initial rounds of discussion were held with the

giants of the automobile industry

While the major companies were personally represented in the initial rounds of

discussion, Osamu Suzuki, Chairman and CEO of the company ensured that he

was present in all the rounds of discussion. Suzukiin return received a lot of


6/28

help from the government in such matters as import clearances for

manufacturing equipment (against the wishes of the Indian machine tool

industry then and its own socialistic ideology), land purchase at government

prices for setting up the factory Gurgaon and reduced or removal of excise

tariffs. This ensured that Suzuki conscientiously nursed Maruti Suzuki through

its infancy to become one ofits flagship ventures.

Company >> General >> Background

Maruti Suzuki India Ltd

Industry :Automobiles - passenger cars

Incorporation Year 1981

Chairman R C Bhargava

Managing Director

Company Secretary S Ravi Aiyar

Auditor Price Waterhouse

Registered OfficePlot No 1 Nelson Mandela Road,Vasant Kunj,

New Delhi, 110070, New Delhi

Telephone 91-11-46781000

Fax 91-11-46150275/6

E-mail [email protected]

Website http://www.marutisuzuki.com

Face Value (Rs) 5

BSE Code 532500

BSE Group A

NSE Code MARUTI


7/28

Bloomberg MSIL IN

Reuters MRTI.BO

ISIN Demat INE585B01010

Market Lot 1

Listing Mumbai,NSE

Financial Year End 3

BookClosure Month Aug/Sep

AGM Month Sep

Registrar's Name & Address

Karvy Computershare Pvt Ltd, Plot No 17-24,

Vittal Rao Nagar, Madhapur, Hyderabad-500081.

91-040-4465500091-040-2342081

Services offeredCurrent sales of automobiles

Manufactured locally

1.800 (Launched 1983)

2.Omni (Launched 1984)

3.Gypsy (Launched 1985)

4.WagonR (Launched 2002)

5.Alto (Launched 2000)

6.Swift (Launched 2005)


8/28

7.Estilo (Launched 2009)

8.SX4 (Launched 2007)

9.Swift DZire (Launched 2008)

10.A-star (Launched 2008)

11.Ritz (Launched 2009)

12.Eeco (Launched 2010)

13.Alto K10(Launched 2010)

Imported

Suzuki Grand Vitara

1.Grand Vitara (Launched 2007)

2.Kizashi (Launched 2011)

Share price over a year:-

8 Apr 11 | 15:56


9/28

1,254.20

-24.90 ( -1.95%

)

Stock Price Movements

Day's High / Low 1,282.80 / 1,250.00

Previous Close / Open 1,279.10 / 1,272.00

Wtd. Avg Price 1,263.46

Total TradedValue (Cr.) 4.88

TTQ/ 2W Avg Q(Lakh) 0.39 / 0.77

Circuit Limits NA

Mkt. Cap. Full / Free Float (Cr.) 36,235 / 18,117

Market Depth

Buy Qty Price Sell Price Qty

-- -- 1,253.50 78

-- -- 1,253.80 1

-- -- 1,254.00 50

-- -- 1,254.20 429

-- -- -- --

Total 409 1,109

Current price of one share is 1214.50

High Price 1227.70 52 Wk High 1599.90

Low Price 1200.05 52 Wk Low 1145.50 (dated 15 /3/2011)

The Company performance during the year is summarized below:

(Rs. in million)

2009-10 2008-09

Cross total income 301,198 214,538


10/28

Profit before tax 35,925 16,758

Tax expense 10,949 4,571

Profit after tax 24,976 12,187

Balance brought forward 80.042 70,257

Profit available for appropriation 105.018 82,444

Appropriations:

General reserve 2,498 1,219

Proposed dividend 1,733 1,011

Corporate dividend tax 288 172

Balance carried forward to balance sheet 100,499 80,042


11/28

Company >> Finance >> Balance SheetMaruti Suzuki India Ltd

Industry :Automobiles - passenger cars(Rs in Crs)

Year Mar 10 Mar 09 Mar 08 Mar 07 Mar 06

SOURCES OF FUNDS :

Share Capital + 144.50 144.50 144.50 144.50 144.50

Reserves Total + 11,690.60 9,200.40 8,270.90 6,709.40 5,308.10

Equity Share Warrants 0.00 0.00 0.00 0.00 0.00

Equity Application Money 0.00 0.00 0.00 0.00 0.00

Total Shareholders Funds 11,835.10 9,344.90 8,415.40 6,853.90 5,452.60

Secured Loans + 26.50 0.10 0.10 63.50 71.70

Unsecured Loans + 794.90 698.80 900.10 567.30 0.00

Total Debt 821.40 698.90 900.20 630.80 71.70

Total Liabilities 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

APPLICATION OF FUNDS :

Gross Block + 10,406.70 8,720.60 7,285.30 6,146.80 4,954.60

Less : Accumulated Depreciation + 5,382.00 4,649.80 3,988.80 3,487.10 3,259.40

Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00

Net Block + 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20

Lease Adjustment 0.00 0.00 0.00 0.00 0.00

Capital Work in Progress+ 387.60 861.30 736.30 250.70 92.00

Investments + 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20

Current Assets, Loans & Advances

Inventories + 1,208.80 902.30 1,038.00 701.40 881.20

Sundry Debtors + 809.90 937.80 655.50 747.40 646.10

Cash and Bank+ 98.20 1,939.00 330.50 1,422.80 1,401.60

Loans and Advances + 1,655.50 1,730.90 1,073.90 1,533.40 812.00

Total Current Assets 3,772.40 5,510.00 3,097.90 4,405.00 3,740.90

Less : Current Liabilities and Provisions

Current Liabilities + 2,939.40 3,035.80 2,456.20 2,011.00 1,505.80Provisions + 628.40 380.70 369.50 1,061.40 471.30

Total Current Liabilities 3,567.80 3,416.50 2,825.70 3,072.40 1,977.10

Net Current Assets 204.60 2,093.50 272.20 1,332.60 1,763.80

Miscellaneous Expenses not written off + 0.00 0.00 0.00 0.00 0.00

Deferred Tax Assets 83.60 78.90 99.60 110.10 121.10

Deferred Tax Liability 220.60 234.00 269.70 277.60 199.00

Net Deferred Tax -137.00 -155.10 -170.10 -167.50 -77.90

Total Assets 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

Contingent Liabilities+ 1,696.70 1,339.60 2,186.10 1,684.40 881.40


12/28

Company >> Finance >> Profit & LossMaruti Suzuki India Ltd

Industry :Automobiles - passenger cars(Rs in Crs)

Year Mar 10(12) Mar 09(12) Mar 08(12) Mar 07(12) Mar 06(12)

INCOME :

Sales Turnover + 31,947.70 23,180.60 21,025.20 17,205.90 14,753.10

Excise Duty 2,848.80 2,726.90 3,133.60 2,509.60 2,737.20

Net Sales 29,098.90 20,453.70 17,891.60 14,696.30 12,015.90

Other Income + 1,020.90 1,000.10 837.10 598.40 429.20

Stock Adjustments + 193.30 -281.80 336.30 -243.10 236.00

Total Income 30,313.10 21,172.00 19,065.00 15,051.60 12,681.10

EXPENDITURE :

Raw Materials + 22,363.50 15,763.10 13,791.50 10,739.00 9,335.60

Power & Fuel Cost+ 216.60 193.60 147.30 97.40 57.20

Employee Cost + 538.00 463.50 346.80 266.29 211.45

Other Manufacturing Expenses + 308.90 254.70 197.80 153.50 141.30

Selling and Administration Expenses + 2,122.37 1,553.56 1,141.28 941.67 668.56

Miscellaneous Expenses + 312.73 510.24 309.52 264.94 211.19

Less: Pre-operative Expenses Capitalised+ 0.00 0.00 0.00 0.00 0.00

Total Expenditure 25,862.10 18,738.70 15,934.20 12,462.80 10,625.30

Operating Profit 4,451.00 2,433.30 3,130.80 2,588.80 2,055.80

Interest + 33.50 51.00 59.60 37.60 20.40

Gross Profit 4,417.50 2,382.30 3,071.20 2,551.20 2,035.40

Depreciation+ 825.00 706.50 568.20 271.40 285.40

Profit Before Tax 3,592.50 1,675.80 2,503.00 2,279.80 1,750.00

Tax+ 1,123.00 459.20 759.80 621.40 587.30

Fringe Benefit tax+ 0.00 9.70 9.80 6.70 5.70

Deferred Tax+ -28.10 -11.80 2.60 89.70 -32.10

Reported Net Profit 2,497.60 1,218.70 1,730.80 1,562.00 1,189.10

Extraordinary Items + 78.98 146.07 61.09 26.71 -7.97

Adjusted Net Profit 2,418.62 1,072.63 1,669.71 1,535.29 1,197.07

Adjst. below Net Profit + 0.00 0.00 0.00 -8.80 0.00

P & L Balance brought forward 8,004.20 7,025.70 5,637.30 4,393.90 3,442.10

Statutory Appropriations + 0.00 0.00 0.00 0.00 0.00

Appropriations + 451.90 240.20 342.40 309.80 237.30

P & L Balance carried down 10,049.90 8,004.20 7,025.70 5,637.30 4,393.90

Dividend 173.30 101.10 144.50 130.00 101.10

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend % 120.00 70.00 100.00 90.00 70.00

Earnings Per Share-Unit Curr 85.43 41.57 59.03 53.29 40.65

Earnings Per Share(Adj)-Unit Curr

Book Value-Unit Curr 409.52 323.35 291.19 237.16 188.67


13/28

TREND ANALYSIS:


BaseYear(06)

For yearMar.10

For yearmar.09

For Year

Mar. 08

For Year

Mar.07

SOURCES OF FUNDS :

Share Capital + 144.5 144.5 144.5 144.5 144.5 100 100 100 100 100

Reserves Total + 11,690.60 9,200.40 8,270.90 6,709.40 5,308.10 100 220.2408 173.32756 155.816582 126.39927

Equity Share Warrants 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Equity Application Money 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Total Shareholders Funds 11,835.10 9,344.90 8,415.40 6,853.90 5,452.60 100 217.0542 171.38429 154.33738 125.69966

Secured Loans + 26.5 0.1 0.1 63.5 71.7 100 36.95955 0.13947 0.13947001 88.563458

Unsecured Loans + 794.9 698.8 900.1 567.3 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Total Debt 821.4 698.9 900.2 630.8 71.7 100 1145.607 974.75593 1255.50907 879.77684

Total Liabilities 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30 100 229.106 181.81127 168.62951 135.48684

APPLICATION OF FUNDS : #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Gross Block+ 10,406.70 8,720.60 7,285.30 6,146.80 4,954.60 100 210.0412 176.01017 147.041133 124.06248

Less : Accumulated Depreciation + 5,382.00 4,649.80 3,988.80 3,487.10 3,259.40 100 165.1224 142.65816 122.378352 106.98594

Less:Impairment of Assets 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Net Block+ 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20 100 296.4075 240.13686 194.460831 156.89594

Lease Adjustment 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Capital Workin Progress+ 387.6 861.3 736.3 250.7 92 100 421.3043 936.19565 800.326087 272.5

Investments + 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20 100 349.8732 154.70456 252.569228 166.20514

Current Assets, Loans & Advances #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Inventories + 1,208.80 902.3 1,038.00 701.4 881.2 100 137.1766 102.39446 117.793917 79.596005

Sundry Debtors + 809.9 937.8 655.5 747.4 646.1 100 125.3521 145.14781 101.454883 115.67868

Cash and Bank+ 98.2 1,939.00 330.5 1,422.80 1,401.60 100 7.006279 138.34189 23.5801941 101.51255

Loans and Advances + 1,655.50 1,730.90 1,073.90 1,533.40 812 100 203.8793 213.16502 132.253695 188.84236

Total Current Assets 3,772.40 5,510.00 3,097.90 4,405.00 3,740.90 100 100.842 147.29076 82.8116229 117.7524

Less : Current Liabilities and

Provisions #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Current Liabilities + 2,939.40 3,035.80 2,456.20 2,011.00 1,505.80 100 195.2052 201.60712 163.115952 133.55027

Provisions + 628.4 380.7 369.5 1,061.40 471.3 100 133.3333 80.776575 78.4001697 225.20687

Total Current Liabilities 3,567.80 3,416.50 2,825.70 3,072.40 1,977.10 100 180.4562 172.8036 142.921451 155.3993

Net Current Assets 204.6 2,093.50 272.2 1,332.60 1,763.80 100 11.59995 118.692615.4325887 75.552783

Miscellaneous Expenses not written

off + 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Deferred Tax Assets 83.6 78.9 99.6 110.1 121.1 100 69.03386 65.152766 82.2460776 90.916597

Deferred Tax Liability 220.6 234 269.7 277.6 199 100 110.8543 117.58794 135.527638 139.49748

Net Deferred Tax -137 -155.1 -170.1 -167.5 -77.9 100 175.8665 199.10141218.356868 215.01925

Total Assets 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30 100 229.106 181.81127 168.62951 135.48684

Contingent Liabilities+ 1,696.70 1,339.60 2,186.10 1,684.40 881.4 100 192.5006 151.98548 248.025868 191.1050


14/28

COMPAIRATIVE ANALYSIS OF BALANCE SHEET


Absolute change in

Income(Mar.10)

%

Change

Absolute

change in

Income(Mar.09)

%

Change

SOURCES OF FUNDS :Share Capital + 144.5 144.5 144.5 144.5 144.5 0 0 0 0

Reserves Total + 11,690.60 9,200.40 8,270.90 6,709.40 5,308.10 2490.2 27.0662 929.5 11.2382

Equity Share Warrants 0 0 0 0 0 0 #DIV/0! 0 #DIV/0!

Equity Application Money 0 0 0 0 0 0 #DIV/0! 0 #DIV/0!

Total Shareholders Funds 11,835.10 9,344.90 8,415.40 6,853.90 5,452.60 2490.2 26.6477 929.5 11.04523

Secured Loans + 26.5 0.1 0.1 63.5 71.7 26.4 26400 0 0

Unsecured Loans + 794.9 698.8 900.1 567.3 0 96.1 13.7521 -201.3 -22.3642

Total Debt 821.4 698.9 900.2 630.8 71.7 122.5 17.5275 -201.3 -22.3617

Total Liabilities 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30 2612.7 26.0131 728.2 7.816995

APPLICATION OF FUNDS

: 0 #DIV/0! 0 #DIV/0!

Gross Block+ 10,406.70 8,720.60 7,285.30 6,146.80 4,954.60 1686.1 19.3347 1435.3 19.70132

Less : Accumulated

Depreciation + 5,382.00 4,649.80 3,988.80 3,487.10 3,259.40 732.2 15.7469 661 16.5714

Less:Impairment of Assets 0 0 0 0 0 0 #DIV/0! 0 #DIV/0!

Net Block+ 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20 953.9 23.4327 774.3 23.48855

Lease Adjustment 0 0 0 0 0 0 #DIV/0! 0 #DIV/0!

Capital Workin Progress+ 387.6 861.3 736.3 250.7 92 -473.7 -54.998 125 16.97678

Investments + 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20 4003.3 126.156 -2007.4 -38.7477

Current Assets, Loans &

Advances 0 #DIV/0! 0 #DIV/0!

Inventories + 1,208.80 902.3 1,038.00 701.4 881.2 306.5 33.9687 -135.7 -13.0732

Sundry Debtors + 809.9 937.8 655.5 747.4 646.1 -127.9 -13.638 282.3 43.06636

Cash and Bank+ 98.2 1,939.00 330.5 1,422.80 1,401.60 -1840.8 -94.936 1608.5 486.6868

Loans and Advances + 1,655.50 1,730.90 1,073.90 1,533.40 812 -75.4 -4.3561 657 61.17888

Total Current Assets 3,772.40 5,510.00 3,097.90 4,405.00 3,740.90 -1737.6 -31.535 2412.1 77.86242

Less : Current Liabilities and

Provisions 0 #DIV/0! 0 #DIV/0!

Current Liabilities + 2,939.40 3,035.80 2,456.20 2,011.00 1,505.80 -96.4 -3.1754 579.6 23.59743Provisions + 628.4 380.7 369.5 1,061.40 471.3 247.7 65.0644 11.2 3.031123

Total Current Liabilities 3,567.80 3,416.50 2,825.70 3,072.40 1,977.10 151.3 4.42851 590.8 20.90809

Net Current Assets 204.6 2,093.50 272.2 1,332.60 1,763.80 -1888.9 -90.227 1821.3 669.103

Miscellaneous Expenses not

written off + 0 0 0 0 0 0 #DIV/0! 0 #DIV/0!

Deferred Tax Assets 83.6 78.9 99.6 110.1 121.1 4.7 5.95691 -20.7 -20.7831

Deferred Tax Liability 220.6 234 269.7 277.6 199 -13.4 -5.7265 -35.7 -13.2369

Net Deferred Tax -137 -155.1 -170.1 -167.5 -77.9 18.1 -11.67 15 -8.81

Total Assets 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30 2612.7 26.0131 728.2 7.816995

Contingent Liabilities+ 1,696.70 1,339.60 2,186.10 1,684.40 881.4 357.1 26.6572 -846.5 -38.7219


15/28

CONTI...

Absolute

change in

Income(Mar.08 ) % Change

Absolute

change in

Income(Mar.07)

%

Change

0 0 0 0

1561.5 23.273318 1401.3 26.39928

0 #DIV/0! 0 #DIV/0!

0 #DIV/0! 0 #DIV/0!

1561.5 22.782649 1401.3 25.69967

-63.4 -99.84252 -8.2-

11.43654

332.8 58.663846 567.3 #DIV/0!

269.4 42.707673 559.1 779.7768

1830.9 24.461902 1960.4 35.48685

0 #DIV/0! 0 #DIV/0!

1138.5 18.521832 1192.2 24.06249

501.7 14.387313 227.7 6.985948

0 #DIV/0! 0 #DIV/0!

636.8 23.94255 964.5 56.89594

0 #DIV/0! 0 #DIV/0!

485.6 193.69765 158.7 172.5

1771.5 51.962337 1358 66.20515

0 #DIV/0! 0 #DIV/0!

336.6 47.989735 -179.8

-

20.40399

-91.9

-

12.295959 101.3 15.67869

-1092.3

-

76.771155 21.2 1.512557

-459.5

-

29.966088 721.4 88.84236

-1307.1

-

29.673099 664.1 17.75241

0 #DIV/0! 0 #DIV/0!

445.2 22.13824 505.2 33.55027

-691.9

-

65.187488 590.1 125.2069

-246.7-

8.0295534 1095.3 55.39932

-1060.4

-

79.573766 -431.2

-

24.44722

0 #DIV/0! 0 #DIV/0!

-10.5

-

9.5367847 -11

-

9.083402

-7.9

-

2.8458213 78.6 39.49749

-2.6 1.5522388 -89.6 115.0193

1830.9 24.461902 1960.4 35.48685

501.7 29.785087 803 91.10506


16/28

COMPAIRATIVE ANALYSIS OF P/L ACCOUNT

Year

Mar

10(12)

Mar

09(12)

Mar

08(12)

Mar

07(12)

Mar

06(12)

Ab ch in

yr m.10 % change

INCOME :

Sales Turnover + 31,947.70 23,180.60 21,025.20 17,205.90 14,753.10 8,767.10 37.8208502

Excise Duty 2,848.80 2,726.90 3,133.60 2,509.60 2,737.20 121.90 4.4702776 Net Sales 29,098.90 20,453.70 17,891.60 14,696.30 12,015.908,645.20 42.2671693

Other Income + 1,020.90 1,000.10 837.1 598.4 429.2 20.80 2.07979202

StockAdjustments + 193.3 -281.8 336.3 -243.1 236 475.10-

168.594748

Total Income 30,313.10 21,172.00 19,065.00 15,051.60 12,681.10 9,141.10 43.1754204

EXPENDITURE : 0.00 #DIV/0!

Raw Materials + 22,363.50 15,763.10 13,791.50 10,739.00 9,335.60 6,600.40 41.8724743

Power & Fuel Cost+ 216.6 193.6 147.3 97.4 57.2 23.00 11.8801653

Employee Cost + 538 463.5 346.8 266.29 211.45 74.50 16.0733549

Other Manufacturing Expenses + 308.9 254.7 197.8 153.5 141.3 54.20 21.2799372

Selling and Administration Expenses + 2,122.37 1,553.56 1,141.28 941.67 668.56 568.81 36.6133268

Miscellaneous Expenses + 312.73 510.24 309.52 264.94 211.19 -197.51

-

38.7092349

Less: Pre-operative Expenses

Capitalised+ 0 0 0 0 0 0.00 #DIV/0!

Total Expenditure 25,862.10 18,738.70 15,934.20 12,462.80 10,625.30 7,123.40 38.0143767

Operating Profit 4,451.00 2,433.30 3,130.80 2,588.80 2,055.80 2,017.70 82.920314

Interest + 33.5 51 59.6 37.6 20.4 -17.50

-

34.3137255

Gross Profit 4,417.50 2,382.30 3,071.20 2,551.20 2,035.40 2,035.20 85.4300466

Depreciation+ 825 706.5 568.2 271.4 285.4 118.50 16.7728238

Profit Before Tax 3,592.50 1,675.80 2,503.00 2,279.80 1,750.00 1,916.70 114.375224Tax+ 1,123.00 459.2 759.8 621.4 587.3 663.80 144.555749

Fringe Benefit tax+ 0 9.7 9.8 6.7 5.7 -9.70 -100

Deferred Tax+ -28.1 -11.8 2.6 89.7 -32.1 -16.30 138.135593

Reported Net Profit 2,497.60 1,218.70 1,730.80 1,562.00 1,189.10 1,278.90 104.93969

Extraordinary Items + 78.98 146.07 61.09 26.71 -7.97 -67.09-

45.9300335

Adjusted Net Profit 2,418.62 1,072.63 1,669.71 1,535.29 1,197.07 1,345.99 125.485023

Adjst. below Net Profit + 0 0 0 -8.8 0 0.00 #DIV/0!

P & L Balance brought forward 8,004.20 7 ,025.70 5,637.30 4,393.90 3,442.10 978.50 13.9274378

Statutory Appropriations + 0 0 0 0 0 0.00 #DIV/0!

Appropriations + 451.9 240.2 342.4 309.8 237.3 211.70 88.1348876P & L Balance carried down 10,049.90 8,004.20 7,025.70 5,637.30 4,393.90 2,045.70 25.5578321

Dividend 173.3 101.1 144.5 130 101.1 72.20 71.4144411

Preference Dividend 0 0 0 0 0 0.00 #DIV/0!

Equity Dividend % 120 70 100 90 70 50.00 71.4285714

Earnings Per Share-Unit Curr 85.43 41.57 59.03 53.29 40.65 43.86 105.50878

Earnings Per Share(Adj)-Unit Curr 0.00 #DIV/0!

BookValue-Unit Curr 409.52 323.35 291.19 237.16 188.67 86.17 26.6491418


17/28

CONTI.

Ab ch in

yr m.09

%

change

Ab ch in

yr m.08

%

change

Ab ch in

yr m.07

%

change

2,155.40 10.25151 3,819.30 22.19762 2,452.80 16.62566-406.70 -12.9787 624.00 24.86452 -227.60 -8.31507

2,562.10 14.32013 3,195.30 21.74221 2,680.40 22.30711

163.00 19.47199 238.70 39.88971 169.20 39.42218

-618.10 -183.794 579.40 -238.338 -479.10 -203.008

2,107.00 11.05167 4,013.40 26.66427 2,370.50 18.69317

0.00 #DIV/0! 0.00 #DIV/0! 0.00 #DIV/0!

1,971.60 14.29576 3,052.50 28.42443 1,403.40 15.03278

46.30 31.43245 49.90 51.23203 40.20 70.27972

116.70 33.65052 80.51 30.23396 54.84 25.93521

56.90 28.76643 44.30 28.85993 12.20 8.634112

412.28 36.12435 199.61 21.19745 273.11 40.85048

200.72 64.8488 44.58 16.82645 53.75 25.45102

0.00 #DIV/0! 0.00 #DIV/0! 0.00 #DIV/0!

2,804.50 17.60051 3,471.40 27.85409 1,837.50 17.29363

-697.50 -22.2787 542.00 20.93634 533.00 25.92665

-8.60 -14.4295 22.00 58.51064 17.20 84.31373

-688.90 -22.431 520.00 20.38257 515.80 25.34146

138.30 24.34002 296.80 109.3589 -14.00 -4.9054

-827.20 -33.0483 223.20 9.790332 529.80 30.27429

-300.60 -39.563 138.40 22.27229 34.10 5.806232

-0.10 -1.02041 3.10 46.26866 1.00 17.54386-14.40 -553.846 -87.10 -97.1014 121.80 -379.439

-512.10 -29.5875 168.80 10.80666 372.90 31.35985

84.98 139.1062 34.38 128.7158 34.68 -435.132

-597.08 -35.7595 134.42 8.755349 338.22 28.25399

0.00 #DIV/0! 8.80 -100 -8.80 #DIV/0!

1,388.40 24.62881 1,243.40 28.29832 951.80 27.65172

0.00 #DIV/0! 0.00 #DIV/0! 0.00 #DIV/0!

-102.20 -29.8481 32.60 10.52292 72.50 30.55204

978.50 13.92744 1,388.40 24.62881 1,243.40 28.29832

-43.40 -30.0346 14.50 11.15385 28.90 28.58556

0.00 #DIV/0! 0.00 #DIV/0! 0.00 #DIV/0!

-30.00 -30 10.00 11.11111 20.00 28.57143

-17.46 -29.5782 5.74 10.77125 12.64 31.09471

0.00 #DIV/0! 0.00 #DIV/0! 0.00 #DIV/0!

32.16 11.04434 54.03 22.78209 48.49 25.70096


18/28


19/28

Capital structure

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)

Paid Up

Face Value

Paid Up

Capital

2009 2010

Equity

Share 372.00 144.46 288910060 5 144.46

2008 2009

Equity

Share 372.00 144.46 288910060 5 144.46

2007 2008

Equity

Share 372.00 144.46 288910060 5 144.46

Ratio Analysis:-

Ratio Analysis compares significant numbers from financial statements. Rather

than focusing on specific volumes, ratios are indicators of the broad state of our

business. What they indicate is dependent upon the nature of our company,

comparisons to our companys historical ratio values, and comparisons to

competitive companies in the same industry. Financial ratios are useful to us

and potential investors because they allow comparisons to be made between our

business and others of the same type. There are different types of Ration that

divided in different category like which is follow: -

On the basis of Liquidity Ratio

a. Current Ratio

b. QuickRatio

c. Liquidity Ratio


20/28

Types of Ratios calculated:-

A number of ratios are calculated by companies for evaluating their short and long term

performance and also to know liquidity and profitability. Some of the most commonly used

ratios

Liquidity ratios:

It can be defined as a ratio that indicates what proportion of a companys assets can be readilyconverted into cash in the short term. Some of the liquidity ratios are:

y Current ratio:-

The current ratio is calculated from balance sheet data as current assets/current liabilities. The

thumb of rule of current ratio 2:1 .It means that firm can pay its current liabilities from its

current assets two times over.

Formula:

Current ratio= current Assets/current liabilities

y Quick ratio:-

Some current assets can be converted into cash more easily than others. Such assets are

classified as quick assets. Quick assets include cash, debtors, marketable securities and other

assets which can be converted quickly into cash. Its thumb of rule 1:1, the company can meet all

its current liabilities at a short notice. The acid test ratio is betterindicator of liquidity.

Formula:Quickratio= quickassets/current liabilities

y Absolute liquid ratio:-


21/28

Absolute liquidity is represented by cash and near cash items. It is a ratio of absolute liquid

assets to current liabilities. In the computation of this ratio only the absolute liquid assets are

compared with the liquid liabilities. The absolute liquid assets are cash, bank and marketable

securities. It is to be observed that receivables (debtors/accounts receivables and bills

receivables) are eliminated from the list of liquid assets in order to obtain absolute4 liquid assets

since there may be some doubt in their liquidity.

Formula:

Absolute liquid ratio=Absolute liquid assets/current Liabilities

Liquidity Ratio: -

This ratio prepares to identify or determine that companys ability to pay offits

short-term debts obligation. When if there is higher the value of the ratio it

shows that the company able to cover its short-term debts obligation but if not

then there is low margin of safety for the company to coverits short-term debts.

It is divided in three categories.

a) Current Ratio = Current Assets/ current Liability

For 2009,

Current Ratio = 5510.00 /3,035.80

= 1.82

For 2010,

Current Ratio =3,772.40 / 2,939.40

= 1.28


22/28

b)Quick Ratio = Quick Assets/Current Liabilities

For 2009,

QuickRatio =2876.8/3,035.80

= 0.95

For 2010

QuickRatio= 908.10/2,939.40

= 0.31

c) Absolute Quick Ratio= Absolute Quick/ Current Liabilities

For 2009,

Absolute QuickRatio= 1939/3,035.80

=0.64

For 2010

Absolute QuickRatio= 98.20/2939.40

= 0.034

Credit retings

Maruti Suzuki India LtdIndustry :Automobiles - passenger cars

Rating Date Security Type Amount Rating Rating Type

12-08-2010 Debt Progamme 495 P1+ Very Strong With Relatively Higher Standing

12-08-2010 Debt Progamme 760 P1+ Very Strong With Relatively Higher Standing

12-08-2010 Debt Progamme 944 AAA

The instrument rated AAA are judged to offerhighest safety of timely payment of interestand principal. Though the circumstances

providing this degree ofsafety are likely tochange, such changes as can be envisaged

are most unlikely to affect adversely thefundamentally strong position ofsuch issues.

03-08-2009 Debt Progamme 944 AAA

The instrument rated AAA are judged to offerhighest safety of timely payment of interestand principal. Though the circumstances

providing this degree ofsafety are likely tochange, such changes as can be envisaged

are most unlikely to affect adversely thefundamentally strong position ofsuch issues


23/28

Issue of IPO/FPO:-

Initial public offering of 25% of the company in June 2003. As of 10 May 2007

Government of India sold its complete share to Indian financial institutions.With this, Government of India no longer has stake in Maruti Udyog.

Analysed news.

1.Buy Maruti Suzuki; target of Rs 1547: KRChoksey.

KRChoksey is bullish on Maruti Suzuki India and has recommended buy rating on the stock

with a target of Rs 1547 in its April 1, 2011 research report.

Maruti continues to hold dominant position in the passenger car segment with a 51% marketshare. Maruti Suzuki launched its priciest offering in the sedan segment in India, Kizashi, in

the month ofFebruary. Also it plans to come out with refreshes of its current models. It is

expected to launch a variant of the Swift sometime around diwali with several other products

in the pipeline. MSIL has been one of the most aggressive companies in terms of new product

launches. The company expects the demand momentum to continue and expects the demand

forits products to grow by 15% in the next financial year. The company also says that it is

prepared for the increase in demand since its Manesar facility will be operational by start of

FY12 taking the total production to 1.4 million units/annum.

2. MarutiSuzukislipsnearly5%onBSEAuto sector, following the disaster earthquake and tsunami that hit Japan last Friday. The

investors seem to have lost their confidence about a possible setbackto the global economic

recovery following the massive earthquake in Japan. Investors became more scared after third

explosion at nuclear plant in northern region of Japan and Japan Prime Minister

announcement that the possibility of radioactive leakage is increasing following Japan's

earthquake hit Fukushima nuclear power plant. The Automobiles companies were concerned

about the imports from Japan which seems to fall after the disasterin Japan which can

hamper the Indian cars market margin.

Further the interest rate hike by 25 bps by apex bank

alsoled to the fall across interest rate-sensitive auto and realty sectorsThe BSE Auto closed at

Rs. 8,648.95 down by 179.19 or by 2.03%. The main losers were Maruti Suzuki

(3.55%),Exide Inds (2.73%), M&M (2.67%) and Tata Motors (2.18%). The major loserMaruti Suzuki slipped by 4.7% to an early low of Rs 1,200.05 on the Bombay Stock

Exchange inearly trade and closed at Rs. 1,214.50 down by 44.75 po ints or by 3.55%.TheBSE Realty closed at Rs. 2,053.69 down by 66.50 or by 3.14%. The main losers were

HDIL(5.51%),Orbit Corp (4.7%), Mahindra Lifesp (4.67%) and D B Realty (3.94%).


24/28

3. Maruti Suzuki sales up 26% in March

The company reportedly sold a total of 1,21,952 (including exports) units in March, 2011 as

against 95,123 units for the corresponding year ago period; this was equivalent to a growth of

28.2%. Under every division of the companys passenger car segment namely A1, A2, A3

and A4, a growth was reported. A1 (Maruti 800) saw a hike of 5.5%, from 2,762 units in

March, 2010 to 2,915 units in March,2011. A2 (Alto, Wagon-R, Swift, Zen, A-star and Ritz) reported a hike of 5.5%, from 54,763

units in March, 2010 to 78,460 units in March, 2011. In addition A3 (SX4 and Dzire) grew

by 33% from 10,543 units in March, 2010 to 13,910 units in March, 2011. The enterprises

sales for the van type segment grew by 32.6%, however a drop was seen in the sales of MUV

segment, where sales dipped by 8.4%.

And its total passenger car sales surged 40.32 % to

95,388 units in March, 2011 from 67,978 units for the corresponding year ago period. In

addition the press release showed that the auto firms sales outlets increased from 802 to 933,

also the cities covered by sales networkjumped from 555 in 2010 to 666 in 2011.

Currently on the Bombay StockExchange (BSE), stocks of the firm are trading at Rs.

1275.30 up by 0.93% or by Rs. 11.75. The stockhas seen an intraday high of Rs 1290.50 and

a low of Rs 1248.00, so far. Thetotal traded value of the scrip so faris Rs 7.97 crore

4. Maruti Suzuki raises prices of cars

Maruti Suzuki raises prices ofits vehicles across all models across the country. The company

said that it has increased prices up to Rs 9,000 to counterbalance the increasing input cost. In

all company sell 15 models in India, beginning from M800, entry level small car with starting

price of Rs 1.97 lakh to its most recent launched sports car sedan Kizashi, priced upto Rs 17.5

lakh (ex-showroom Delhi). Initially the company has increased its prices between 0.5 to 2.2%

in January and this is the second time in same year the company has raised the prices of itsvehicles. Along with MSIL, Tata Motors have also increased the cost of few selected

passenger vehicles as well as utility vehicles and it hike in prices will be operational from

April 1. Manufacturers in the auto industry are bound to increase the prices due to risinginput costs. Declare

5. Maruti Suzuki's sales up 15.5 percent in February

Maruti Suzuki has announced its month sales record forFebruary, 2011. The company has

informed that there has been an impressive rise of 15.5 percent in its sales for the month ofFebruary. It has managed to sell 1,11,645 units in this month. It has also exported 10,102

units during this period. There has been a remarkable rise of 19.8% of the sales of the firm in

the domestic market. It has managed to sell 1,01,543 units for the month ofFebruary this yearin the local market, as compared to 84,765 units in the same month a year ago. Last year, the

company had exported 11,885 units in the month ofFebruary which is informed to be 10,102

units this year for the same month. So that maruti can generate more revenue from the

market.

6. Profit of Maruti Suzuki Falls

Indias largest carmaker Maruti Suzuki Ltd. Has suffered an 18 percent drop in their profit

levels during the third quarter profit calculation. The Yen is getting strong on the rupees. The


25/28

higher royalty payments and increased raw materials had hampered their profit margin.

According to a statement released by the company, the net income fell to 5.65 billion rupeesin the first 3 months ended from Dec 31st from the prev ious 6.87 billion rupees a year ago.

The sales however gained 27 percent to 92.7 billion rupees. The competition market is gettinghigh with many different carmakers expanding their factories in India. Maruti has been seeing

pressure on its margins from increased commodity prices, Maruti lost around 1,229.35

rupees in Mumbai. It was equivalent to 3.2 percent. The Maruti stocks dropped 14 percentthis year. Maruti paid 5.2 percent of its rent as royalty of its net profits as claimed by theChief financial Officer.

7. Maruti to sustain its market share by opening elite showrooms

Maruti Suzuki India, the leader in the Indian auto industry is doing towards maintaining its

turf in the upmarket is it. The industry experts are witnessing varied changes in Maruti to

sustain its stake in this highly competitive market. It is being learnt that Maruti Suzuki has

purchased properties in various metros and developing showrooms to attract the cash-rich

buyers. The change is huge to maintain its abating market share. The company wishes to shed

away its traditional model image and wear the all new upmarket brand image. HigherAuthority of Maruti Suzuki India said that the company wishes to start a retail format which

will help them to reach out to the customers on the high retail prices. The company haspurchased various properties by spending almost Rs 50-60 crore in Mumbai. He added that it

is not in the range of the local dealers so the company has managed to get the right locations.Howeverissues such as sales and services will be dealt by the dealers.

8. Correction in Maruti share may be over, analysts say

Shares of Maruti Suzuki India, which have been on a sli ppery road in recent weeks,

rebounded 3.6% Tuesday to close at Rs 1,171.85, after the management clarified that the

earthquake and Tsunamiin Japan would not have any impact on its production here.

Some analysts say that the recent selling may have been overdone. The companys shares fell

almost 10% in last 8-10 days, over worries that an appreciating yen would hit margins, and

any production

impact

in Japan would hurt Ind

ian output.Company production out here has not had any impact on what has happened in Japan.

The (share) correction phase is over. Investors have got some confidence back post the

management comments, Vineet Hetamsaria, vice-president (research) at Pinc Research said.

Last weeks share price fall was just an immediate reaction to the Japanese disaster, Yaresh

Kothari, analyst at Angel Broking said.

Investors also cheered managements optimism that the margins would be maintained if yen

remained stable going ahead.The Japanese currency had appreciated sharply after the

earthquake and Tsunami struck as more yen was withdrawn to fund redevelopment projects


26/28

in Japan. Incident of japan has impact on the share of maruti due the change in the value of

currency.

9. Maruti Suziki shares down over products recallShare price of Maruti Suzuki falls by around 1.5 pc on BSE and was trading at Rs 1278.75

per share. While on NSE the stockwas down by 1.80 pc and trading at Rs 1277. stocks feltthe heat of the announcement in which Maruti Suzuki said that it will recall 13,157 diesel

variants of sedan Swift Dzire, to replace a faulty engine part. This is Maruti's third major

recall in the past one year. Its A-Star model had a problem in the fuel tank forcing the

company to carry out necessary rectifications in 100,000 units across domestic and overseas

markets in February 2010. Such a major steps is taken by maruti to continue with the

reputation they have made globally. Because if they would have not taken such a long term

faith building steps this would have led impact them a lot in negative way. And no doubt

there shares would have gone down which would have cause them a great loss.

10. Maruti Kizashi completes 500 bookings, delivery to start soon

Newlylaunched Maruti Kizashi the first premium car from Marutiis slowly making goodprogress. The company has already completed 500 bookings for the car and delivery will be

completed in 3-4 months time. The delivery of Maruti Kizashiis expected to start after 2weeks. Available at price of Rs. 16.5 lacs, Maruti Kizashi will compete against existing

premium cars like Honda Accord, VW AG's Jetta and Toyota Camry. Desp ite being leaderinIndian auto industry with market share of 45 per cent, Maruti has very minor share of 3 per

cent in premium segment. And definitely this car which is launched to rise the share market

of marutiin premium segment is definitely going to workfor maruti and will help maruti to

raise its share of 3% in premium segment.


27/28

Reference:-

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://www.bseindia.com/bseplus/AnnualReport/532500/5325000310.pdf

http://www.articlesbase.com/advertising-articles/journey-of-maruti-suzuki-568992.html

http://www.capitaline.com/user/framepage.asp?id=1

http://money.rediff.com/companies/maruti-suzuki-india-ltd/10520005/capital-structures

News:

http://www.moneycontrol.com/news/recommendations/buy-maruti-suzuki-targetrs-1547-

krchoksey_533587.html

http://m.economictimes.com/PDAET/stocknewsdisp.cms?newsid=492152&ticker=marusu

http://m.economictimes.com/PDAET/stocknewsdisp.cms?newsid=496474&ticker=marusu

http://www.stockwatch.in/maruti-suzuki-raises-prices-cars-28810

http://www.stockwatch.in/maruti-suzukis-sales-155-percent-february-28686

http://www.stockwatch.in/profit-maruti-suzuki-falls-28612

http://www.cardekho.com/india-car-news/maruti-to-sustain-its-market-share-by-opening-elite-showrooms-3600.htm

http://www5.moneycontrol.com/news/business/correction-maruti-share-may-be-overanalysts-

say_531205.html

http://articles.economictimes.indiatimes.com/2011-04-07/news/29392543_1_swift-dzire-small-car-swift-hatchback

http://ic-technews.com/automobiles/4084-maruti-kizashi-completes-500-bookings-delivery-to-

start-soon


28/28

f.m (term paper)

Documents