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8/3/2019 F.M (term paper)
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Term Paper
On
Submitted to: Submitted by:
Lalit sir RITESH KUMAR
ROLL NO: B54
SEC: R1003
REG NO: 11004058
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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.
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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
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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:-
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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
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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 msilinvestorrelations@maruti.co.in
Website http://www.marutisuzuki.com
Face Value (Rs) 5
BSE Code 532500
BSE Group A
NSE Code MARUTI
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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)
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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:-
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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
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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
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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
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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
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TREND ANALYSIS:
Year Mar 10 Mar 09 Mar 08 Mar 07 Mar 06
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
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COMPAIRATIVE ANALYSIS OF BALANCE SHEET
Year Mar 10 Mar 09 Mar 08 Mar 07 Mar 06
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
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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
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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
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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
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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
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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:-
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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
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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
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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%).
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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
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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
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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.
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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
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