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EXECUTIVE SUMMARY

This project has been a great learning experience for me at the same time it gave

me enough scope to implement my analytical ability.

The project is based on the ratio analysis of both the companies simultaneously. This

point is clearly explained in the following project report named COMPARATIVE

STUDY OF THE FINANCIAL STATEMENTS OF MERCEDES-BENZ INDIA

PVT LTD AND FIAT INDIA PVT LTD WITH RESPECT TO RATIO

ANALYSIS TECHNIQUE. The duration of my project was two months from 01-

06-2010 to 31-07-2010. I have completed my project under the REGISTRAR OF

COMPANIES.

MERCEDES-BENZ & FIAT are well known companies in the Indian market

and they have their business operations all over the world. Over the years these

companies have increased their customer base on huge numbers by improving their

marketing and distribution strategies. This was required to be followed by huge

investments in production and other activities. So these companies have been finding

various options to meet their financial needs which will help them to reduce the

financing cost.

The Ratio Analysis technique is the process of identifying the financial

strength and weakness between the items of the balance-sheet and the profit and loss

account because the figures recorded in the financial statements are absolutely

incapable of revealing the soundness or otherwise a companys financial position or

performance. Thus the technique of Ratio Analysis has been used which is supposed

to be powerful tool for financial statement.

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OBJECTIVE

To make comparative study of financial Statements of different years.

To study various ratios to determine the relationship of different factors which

have impact on the financial position of the company.

To identify the financial strengths and weakness of the company.

To find out the reasons for unsatisfactory results.

SCOPE

To analyze the financial positions of the companies.

The companys strength and weakness and areas of development or decline are

analysed, financial strength and operational factors are considered.

The opportunity open to the company is considered and its growth potential

assessed competitive or technological threats are highlighted.

It helps to examine the adequacy of funds, the solvency of the firm

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REGISTRAR OF COMPANIES

Registrars of Companies (ROC) appointed under Section 609 of the

Companies Act covering the various States and Union Territories are vested with the

primary duty of registering companies floated in the respective states and the Union

Territories and ensuring that such companies comply with statutory requirements

under the Act. These offices function as registry of records, relating to the companies

registered with them, which are available for inspection by members of public on

payment of the prescribed fee. The Central Government exercises administrative

control over these offices through the respective Regional Directors.

ABOUT MCA

The Ministry is primarily concerned with administration of the Companies

Act, 1956, other allied Acts and rules & regulations framed there-under mainly for

regulating the functioning of the corporate sector in accordance with law. The

Ministry is also responsible for administering the Competition Act, 2002 which will

eventually replace the Monopolies and Restrictive Trade Practices Act, 1969 under

which the Monopolies and Restrictive Trade Practices Commission (MRTPC) is

functioning. Besides, it exercises supervision over the three professional bodies,

namely, Institute of Chartered Accountants of India (ICAI), Institute of Company

Secretaries of India (ICSI) and the Institute of Cost and Works Accountants of India

(ICWAI) which are constituted under three separate Acts of the Parliament for proper

and orderly growth of the professions concerned. The Ministry also has the

responsibility of carrying out the functions of the Central Government relating to

administration of Partnership Act, 1932, the Companies (Donations to National

Funds) Act, 1951 and Societies Registration Act, 1980.

MINISTRY'S VISION

"To be a leader and partner in initiatives for corporate reforms, good

governance and enlightened regulation, with a view to promote and facilitate effective

corporate functioning, investor protection and inclusive growth, empower the Indian

citizen and have a global footprint"

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The Ministry has introduced the following two Schemes with effect from 30-5-2010:

Company Law Settlement Scheme, 2010 giving opportunity to the

defaulting Companies to enable them to make their default good by filing

belated documents and to become a regular compliant in future.

Easy Exit Scheme, 2010 giving opportunity to the defunct companies to

get their names struck off from the register under Section 560 of the

Companies Act, 1956.

COMMITMENT

WE SHALL CARRY OUT OUR TASKS WITH

integrity and judiciousness

courtesy and understanding,

objectivity and transparency

promptness and efficiency

STANDARDS:

We shall acknowledge applications, returns and all communications within 7

days of their receipt. Resolve expeditiously complaints regarding delay in issue of

allotment letters & share/debenture certificates, refund of application money, delay in

transfer of shares & non payment of dividends/interest on shares/ debentures/fixed

deposits etc. in close co-ordination with agencies. Ensure that all applications

submitted to the Ministry of Corporate Affairs, Regional Directors and Registrar of

Companies, are processed within the time frame.

ADDRESS :-

Sh. VISHNU PANDURANG KATKAR

REGISTRAR OF COMPANIES

PMT BUILDING ,

PUNE STOCK EXCHANGE,

3RD FLOOR, DECCAN GYMKHANA,

PUNE-411004

[email protected]

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REGIONAL DIRECTORS

The four Regional Directors (RD) are in-charge of the respective regions, each

region comprising a number of States and Union Territories. They supervise the

working of the offices of the Registrars of Companies and the Official Liquidators

working in their regions. They also maintain liaison with the respective State

Governments and the Central Government in matters relating to the administration of

the Companies Act. Certain powers of the Central Government under the Act have

been delegated to the Regional Directors. They have also been declared as heads of

Department. There is also an Inspection unit attached to the office of every Regional

Director for carrying out the inspection of the books of accounts of Companies under

Section 209A of the Companies Act.

Regional Directors

EASTERN REGION

Sh. U.C NAHTA

NIZAM PALACE

II MSO BUILDING3RD FLOOR, 234/4 A.J.C.BOSE ROADKOLKATA-700020PHONE: 033-22870383FAX: 033-22870958EMAIL: [email protected]@mca.gov.in

SOUTHERN REGION

Sh. B.K. BANSAL5TH FLOOR

SHASTRI BHAWAN26 HADDOWS ROADCHENNAI- 600006PHONE: 044-28271737FAX: 044-28280436EMAIL: [email protected]@mca.gov.in

NORTHERN REGION

Dr. NAVRANG SAINI

A-14, SECTOR-I,PDIL BHAVANNOIDA (UP)PHONE: 0120-2445342FAX: 0120-2445341EMAIL: [email protected]@mca.gov.in

WESTERN REGION

Sh. RAKESH CHANDRA

EVEREST 5TH FLOOR100 MARINE DRIVEMUMBAI - 400002PHONE: 022-22817259, 22811493FAX: 022-22812389EMAIL: [email protected]@mca.gov.in

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Mercedes-Benz is a German manufacturer of luxury automobiles, buses,

coaches, and trucks. It is currently a division of the parent company, Daimler AG

(formerly Daimler Chrysler AG), after previously being owned by Daimler-Benz.

Mercedes-Benz has its origins in Karl Benz's creation of the firstpetrol-powered car,

theBenz Patent Motorwagen, patented in January 1886,and byGottlieb Daimlerand

engineerWilhelm Maybach's conversion of a stagecoach by the addition of a petrol

engine later that year. The Mercedes-Benz automobile was first marketed in 1901 by

Daimler Motoren Gesellschaft. The first Mercedes-Benz brand name vehicles were

produced in 1926, following the merger of Karl Benz's and Gottlieb Daimler's

companies into the Daimler-Benz company. Mercedes-Benz has introduced many

technological and safety innovations that have become common in other vehicles

several years later. Mercedes-Benz is the world's oldest automotive brand still in

existence today.

History

Trademark origins

The newly created automobile company, Mercedes-Benz also needed a new

image symbolizing its enterprise union. The iconic three-pointed star is pervasive and

unmistakably recognized around the world. But its design has evolved in many ways

since the two companies merged in 1926. One early logo was trademarked in the

United States on Friday, 16 August 1929. An application was filed for Mercedes-Benz

by Daimler - Benz Aktiengesellschaft of Berlin , Germany with the USPTO. Their

application was filed in the primary class of non-metallic building materials and

provide a description that included, "automotive vehicles, as follows: passenger cars

and freight trucks; parts of and accessories to said vehicles"

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http://en.wikipedia.org/wiki/Luxury_vehiclehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Coach_(vehicle)http://en.wikipedia.org/wiki/Truckhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Karl_Benzhttp://en.wikipedia.org/wiki/Petrol_enginehttp://en.wikipedia.org/wiki/Benz_Patent_Motorwagenhttp://en.wikipedia.org/wiki/Benz_Patent_Motorwagenhttp://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Wilhelm_Maybachhttp://en.wikipedia.org/wiki/Wilhelm_Maybachhttp://en.wikipedia.org/wiki/Wilhelm_Maybachhttp://en.wikipedia.org/wiki/Mercedes_(car)http://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Mercedes-Benz#Innovations%23Innovationshttp://en.wikipedia.org/wiki/Mercedes-Benz#Innovations%23Innovationshttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Berlinhttp://en.wikipedia.org/wiki/United_States_Patent_and_Trademark_Officehttp://en.wikipedia.org/wiki/Luxury_vehiclehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Coach_(vehicle)http://en.wikipedia.org/wiki/Truckhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Karl_Benzhttp://en.wikipedia.org/wiki/Petrol_enginehttp://en.wikipedia.org/wiki/Benz_Patent_Motorwagenhttp://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Wilhelm_Maybachhttp://en.wikipedia.org/wiki/Mercedes_(car)http://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Mercedes-Benz#Innovations%23Innovationshttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/Daimler-Benzhttp://en.wikipedia.org/wiki/Berlinhttp://en.wikipedia.org/wiki/United_States_Patent_and_Trademark_Office


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The drawing design Mercedes-Benz logo is a registered trademark at the

USPTO, and owned by Daimler AG.

Mercedes-Benz

Type Division ofDaimler AG

Industry Automotive industry

Founded 1881

Founder(s) Gottlieb Daimler,Karl Benz

Headquarters Stuttgart,Germany

Area served

Worldwide (except Mercedes-Benz

vehicles and services with other

distributors worldwide)

Key people Dieter Zetsche, CEO

Products

Automobiles

Trucks

Buses

Internal combustion engines

Services Automotive financial services

Parent Daimler AG

Website Mercedes-Benz.com

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http://en.wikipedia.org/wiki/USPTOhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Karl_Benzhttp://en.wikipedia.org/wiki/Karl_Benzhttp://en.wikipedia.org/wiki/Stuttgarthttp://en.wikipedia.org/wiki/Stuttgarthttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Dieter_Zetschehttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Truckhttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Websitehttp://www.mercedes-benz.com/http://en.wikipedia.org/wiki/USPTOhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Karl_Benzhttp://en.wikipedia.org/wiki/Stuttgarthttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Dieter_Zetschehttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Truckhttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Websitehttp://www.mercedes-benz.com/


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QUALITY RANKINGS

Since its inception, Mercedes-Benz had maintained a reputation for its quality

and durability. Objective measures looking atpassenger vehicles - such as J.D. Power

surveys, demonstrated a downturn in reputation in this criteria in the late 1990s and

early 2000s. By mid-2005, Mercedes-Benz temporarily returned to the industry

average for initial quality, a measure of problems after the first 90 days of ownership,

according to J.D. Power. In J.D. Power's Initial Quality Study for the first quarter of

2007, Mercedes-Benz showed dramatic improvement by climbing from 25th to 5th

place, surpassing quality leaderToyota, and earning several awards for its models.

For 2008, Mercedes-Benz's initial quality rating improved by yet another mark, now

in fourth place. On top of this accolade, it also received the Platinum Plant Quality

Award for its Mercedes-Benz Sindelfingen, Germany assembly plant. As of 2009,

Consumer Reports of the United States has changed their reliability ratings for several

Mercedes-Benz vehicles to "average", and are recommending theE-Class and theS-

Class.

Corporate average fuel economy

In the United States, Mercedes-Benz-Benz was assessed a record US$30.66

million for their decision to not meet the federal corporate average fuel economy

standard in 2009. Certain Mercedes-Benz-Benz cars including the S550, and all AMG

models sold in the United States also face an additionalgas guzzler tax.

In 2008, Mercedes-Benz had the worst CO2 average of all major European

manufacturers, ranking 14th out of 14 manufacturers. Mercedes-Benz was also the

worst manufacturer in 2007 and 2006 in terms of average CO2 levels, with 181 g and

188 g of CO2 emitted per km, respectively.

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http://en.wikipedia.org/wiki/Passenger_vehicleshttp://en.wikipedia.org/wiki/J.D._Powerhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Mercedes-Benz_E-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_E-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Corporate_average_fuel_economyhttp://en.wikipedia.org/wiki/Energy_Tax_Acthttp://en.wikipedia.org/wiki/Energy_Tax_Acthttp://en.wikipedia.org/wiki/Passenger_vehicleshttp://en.wikipedia.org/wiki/J.D._Powerhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Mercedes-Benz_E-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Corporate_average_fuel_economyhttp://en.wikipedia.org/wiki/Energy_Tax_Act


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MERCEDEZ BENZ IN INDIA

Mercedes-Benz India has been delighting customers with strong brands and awide range of products equipped with the latest in automotive technology. The

company has been the pioneer of the luxury car segment in India with its inception

way back in 1995. It is the only luxury car maker in India to have such a wide range

of cars. The different ranges available today are the S-Class, E-Class, C-Class, M-

Class, CLS-Class, SLK-Class, CL-Class, GL-Class and the Maybach. We have also

already introduced our high performance AMG cars in India off late.

The depth of choices within these ranges is also extensive with different petrol

and diesel engines. The time difference between the global and Indian launch of its

latest models is constantly optimized. We strive to make them available in the shortest

time possible. Mercedes -Benz has been associated with India for more than 50 years.

Presently, Mercedes-Benz Indias engagement in India covers several domains:

Local production of Mercedes-Benz cars

Making available imported Mercedes-Benz cars Commercial Vehicle operations,

Global sourcing of auto components

Captive automotive technology research and development.

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ORGANISATION CHART

10

CHIEF

FINANCIAL

OFFICER

TREASUR

ER

CASH

MANAG

ER

CREDIT

MANAGE

R

CAPITAL

BUDGETI

NG

MANAGE

R

FUND

RAISINGMANAGE

R

PORTFOLIO

MANAGER

CONTROL

LER

FINANCI

AL

ACCOUN

TS

MANAGE

R

COST

ACCOU

NTS

MANAG

ER

TAXMANAG

ER

DATAMANAG

ER

INTERNAL

AUDITOR


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MODELS

Current model range

Mercedes-Benz has a full range of passenger, light commercial and heavy

commercial equipment. Production is on a global basis. The Smartmarque ofcity cars

has also been part of the Mercedes-Benz Group since 1994.

Passenger cars:

TRUCKS, BUSES AND VANS:

Mercedes-Benz is one of the world's largest manufacturers of trucks.

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http://en.wikipedia.org/wiki/Smart_(automobile)http://en.wikipedia.org/wiki/Marquehttp://en.wikipedia.org/wiki/City_carhttp://en.wikipedia.org/wiki/File:Ernst_Auw%C3%A4rter_Economy_100_4055.jpghttp://en.wikipedia.org/wiki/File:Popemobil_Mai_2007.jpghttp://en.wikipedia.org/wiki/Smart_(automobile)http://en.wikipedia.org/wiki/Marquehttp://en.wikipedia.org/wiki/City_car


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Mercedes -Benz Vario

Mercedes-Benz also producesbuses, mainly for Europe and Asia. Mercedes-

Benz produces a range of vans. The first factory to be built outside Germany after

WWII was in Argentina. It originally built trucks, many of which were modified

independently to buses, popularly named Colectivo. Today, it builds buses, trucks and

the Sprinter van.

McLaren CARS:

Silver SLR McLaren on display at the 2006 European Motor Show in Brussels

Mercedes-Benz has also produced a limited-production sports car with

McLaren Cars, an extension of the collaboration by which Mercedes engines are used

by the Team McLaren-MercedesFormula One racing team, which is part owned by

Mercedes. The 2003 Mercedes-Benz SLR McLarenhas a carbon fiber body with a

5.4 literV8supercharged engine. This is the same cylinder blockas featured in SL55

AMG and the CLS55 AMG, though modified to give 460 kilowatts (625PS; 617bhp)

and 780 Newton meters (575ftlbf) of torque. The SLR has a maximum speed of

337 kilometers per hour (209.4 mph) and costs approximately US$500,000. Due to

European pedestrian-protection regulations, McLaren decided to cease production of

the SLR in 2009.

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http://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Colectivohttp://en.wikipedia.org/wiki/Mercedes-Benz_Sprinterhttp://en.wikipedia.org/wiki/Sports_carhttp://en.wikipedia.org/wiki/McLaren_Carshttp://en.wikipedia.org/wiki/McLaren_Carshttp://en.wikipedia.org/wiki/McLaren_(racing)http://en.wikipedia.org/wiki/Formula_Onehttp://en.wikipedia.org/wiki/Mercedes-Benz_SLR_McLarenhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLR_McLarenhttp://en.wikipedia.org/wiki/Carbon_fiberhttp://en.wikipedia.org/wiki/Litrehttp://en.wikipedia.org/wiki/V8_enginehttp://en.wikipedia.org/wiki/Superchargerhttp://en.wikipedia.org/wiki/Cylinder_blockhttp://en.wikipedia.org/wiki/Kilowatthttp://en.wikipedia.org/wiki/Metric_horsepowerhttp://en.wikipedia.org/wiki/Metric_horsepowerhttp://en.wikipedia.org/wiki/Horsepower#Brake_horsepowerhttp://en.wikipedia.org/wiki/Newton_metrehttp://en.wikipedia.org/wiki/Newton_metrehttp://en.wikipedia.org/wiki/Foot-pound_(energy)http://en.wikipedia.org/wiki/Foot-pound_(energy)http://en.wikipedia.org/wiki/File:Mercedes-Benz_SLR_McLaren_2_cropped.jpghttp://en.wikipedia.org/wiki/Bushttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Colectivohttp://en.wikipedia.org/wiki/Mercedes-Benz_Sprinterhttp://en.wikipedia.org/wiki/Sports_carhttp://en.wikipedia.org/wiki/McLaren_Carshttp://en.wikipedia.org/wiki/McLaren_(racing)http://en.wikipedia.org/wiki/Formula_Onehttp://en.wikipedia.org/wiki/Mercedes-Benz_SLR_McLarenhttp://en.wikipedia.org/wiki/Carbon_fiberhttp://en.wikipedia.org/wiki/Litrehttp://en.wikipedia.org/wiki/V8_enginehttp://en.wikipedia.org/wiki/Superchargerhttp://en.wikipedia.org/wiki/Cylinder_blockhttp://en.wikipedia.org/wiki/Kilowatthttp://en.wikipedia.org/wiki/Metric_horsepowerhttp://en.wikipedia.org/wiki/Horsepower#Brake_horsepowerhttp://en.wikipedia.org/wiki/Newton_metrehttp://en.wikipedia.org/wiki/Foot-pound_(energy)


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ELECTRIC VEHICLES

At the 2007 Frankfurt motor show, Mercedes-Benz showed seven hybrid

models, including the F700 concept car - which combined hybrid drive with the

innovative Die sotto engine. On the other hand, Mercedes-Benz says it will have a

demonstration fleet of practical, if small, electric vehicles on the road in two to three

years, from 2008. Mercedes -Benz S 400 Blue HYBRID will be launched in 2009,

and will be the first production automotive hybrid in the world to use a lithium-ion

battery. In 2009, the S400 hybrid saloon is scheduled to go on sale.

Mercedes-Benz Blue ZERO cars were introduced in the 2009 Show. Mercedes

has showed in 2009 the Vision S500 PHEV petrol concept vehicle with a 19 miles(31 km) all-el centric range and CO2 emissionsof 74 grams/km in theNew European

Driving Cycle. Mercedes-Benz and Smart are preparing for the widespread uptake of

electric vehicles (EVs) in the UK by beginning the installation of recharging points

across theirdealer networks. So far 20 Elektrobay recharging units, produced in the

UK by Brighton-basedElectromotive, have been installed at seven locations as part of

a pilot project, and further expansion of the initiative is planned later 2010.

BICYCLES

Mercedes-Benz Accessories GmbH introduced 3 new bicycles in 2005, named

Automatic Bike from upwards of USD$2699, Fitness Bike from upwards of

USD$3999, Mountain Bike from upwards of USD$5399 (As were the Retail Prices

recorded from immediate release date).The bikes are sold in Australia, Germany, and

Russia. List of bicycles:

Mercedes-Benz Automatic Bike

Mercedes-Benz Carbon Bike

Mercedes-Benz Fitness Bike

Mercedes-Benz Hybrid Bike

Mercedes-Benz Mountain Bike

Mercedes-Benz Street Bike

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http://en.wikipedia.org/wiki/Frankfurt_motor_showhttp://en.wikipedia.org/wiki/Concept_vehiclehttp://en.wikipedia.org/wiki/Mercedes-Benz_S_400_BlueHYBRIDhttp://en.wikipedia.org/wiki/Lithium-ion_batteryhttp://en.wikipedia.org/wiki/Lithium-ion_batteryhttp://en.wikipedia.org/wiki/Lithium-ion_batteryhttp://en.wikipedia.org/wiki/Mercedes-Benz_BlueZEROhttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Vision_S500_PHEV&action=edit&redlink=1http://en.wikipedia.org/wiki/Concept_vehiclehttp://en.wikipedia.org/wiki/All-electric_rangehttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Gramhttp://en.wikipedia.org/wiki/Kmhttp://en.wikipedia.org/wiki/New_European_Driving_Cyclehttp://en.wikipedia.org/wiki/New_European_Driving_Cyclehttp://en.wikipedia.org/wiki/Recharging_pointhttp://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Elektrobayhttp://en.wikipedia.org/wiki/Elektrobayhttp://en.wikipedia.org/wiki/Elektromotivehttp://en.wikipedia.org/wiki/Elektromotivehttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Automatic_Bike&action=edit&redlink=1http://www.emercedesbenz.com/Apr06/04TheMercedesAccessoriesBikeCollection2006.htmlhttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Fitness_Bike&action=edit&redlink=1http://www.wisechat.com/carl/mercedes.htmhttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Mountain_Bike&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Street_Bike&action=edit&redlink=1http://en.wikipedia.org/wiki/Frankfurt_motor_showhttp://en.wikipedia.org/wiki/Concept_vehiclehttp://en.wikipedia.org/wiki/Mercedes-Benz_S_400_BlueHYBRIDhttp://en.wikipedia.org/wiki/Lithium-ion_batteryhttp://en.wikipedia.org/wiki/Lithium-ion_batteryhttp://en.wikipedia.org/wiki/Mercedes-Benz_BlueZEROhttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Vision_S500_PHEV&action=edit&redlink=1http://en.wikipedia.org/wiki/Concept_vehiclehttp://en.wikipedia.org/wiki/All-electric_rangehttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Gramhttp://en.wikipedia.org/wiki/Kmhttp://en.wikipedia.org/wiki/New_European_Driving_Cyclehttp://en.wikipedia.org/wiki/New_European_Driving_Cyclehttp://en.wikipedia.org/wiki/Recharging_pointhttp://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Elektrobayhttp://en.wikipedia.org/wiki/Elektromotivehttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Automatic_Bike&action=edit&redlink=1http://www.emercedesbenz.com/Apr06/04TheMercedesAccessoriesBikeCollection2006.htmlhttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Fitness_Bike&action=edit&redlink=1http://www.wisechat.com/carl/mercedes.htmhttp://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Mountain_Bike&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mercedes-Benz_Street_Bike&action=edit&redlink=1


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The two companies which were merged to form the Mercedes-Benzbrand in 1926

had both already enjoyed success in the new sport of motor racing throughout their

separate histories - both had entries in the very first automobile race Paris to Rouen

1894. This has continued, and throughout its long history, the company has been

involved in a range of motorsport activities, including sports car racing and rallying.

On several occasions Mercedes-Benz has withdrawn completely from motorsport for

a significant period, notably in the late 1930s, and after the 1955 Le Mans disaster,

where a Mercedes-Benz 300SLRcollided with another car and killed more than 80

spectators. Although there was some activity in the intervening years, it was not until

1987 that Mercedes-Benz returned to front line competition, returning to Le Mans,

Deutsche Tourenwagen Meisterschaft (DTM), and Formula One with Sauber.

The 1990s saw Mercedes-Benz-Benz purchase British engine builderIlmor

(now Mercedes-Benz-Benz High Performance Engines), and campaign IndyCars

under the USAC/CART rules, eventually winning the 1994 Indianapolis 500 and

1994 CART IndyCars World Series Championship withAl Unser, Jr. at the wheel.

The 1990s also saw the return of Mercedes-Benz to GT racing, and the Mercedes-

Benz CLK GTR, both of which took the company to new heights by dominating the

FIA's GT1 class. Mercedes-Benz is currently active in three forms of motorsport,

Formula Three, DTM and Formula One.

TUNERS

Several companies have become car tuners (ormodifiers) of Mercedes-Benz,

in order to increase performance and/or luxury to a given model.

IN HOUSE

AMG is Mercedes-Benz's in-house performance-tuning division, specializing

in high-performance versions of most Mercedes-Benz cars. AMG engines are all

hand-built,[46] and each completed engine receives a tag with the signature of the

engineer who built it. AMG has been wholly owned by Mercedes-Benz since 1999.

On the 2009 IAA in Frankfurt, Germany, Mercedes officially introduced the SLS

AMG, a revival of the 300SL Gullwing, and the first car to be developed by AMG.

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INNOVATIONS

The internal combustion engine automobile was developed independently by

Benz and Daimler & Maybach in 1886

Daimler invented the float carburetor which was used until replaced by fuel

injection

The "drop chassis" - the car originally designated the "Mercedes" by Daimler

was also the first car with a modern configuration, having the carriage lowered

and set between the front and rear wheels, with a front engine and powered

rear wheels. All earlier cars were "horseless carriages", which had high centre

of gravity and various engine/drive-train configurations

The first passenger road car to havebrakes on all four wheels (1924)

The "safety cage" or "safety cell" construction with front and rear crumple

zoneswas first developed by Mercedes-Benz in 1951. This is considered by

many as the most important innovation in automobile construction from a

safety standpoint

In 1959, Mercedes-Benz patented a device that prevents drive wheels from

spinning by intervening at the engine, transmission, or brakes. In 1987,

Mercedes-Benz applied its patent by introducing a traction control system that

worked under both braking and acceleration

Mercedes-Benz was the first to introduce pre-tensioners to seat belts on the

1981 S-Class. In the event of a crash, a pre-tensioner will tighten the belt

instantaneously, removing any 'slack' in the belt, which prevents the occupant

from jerking forward in a crash

In September 2003, Mercedes-Benz introduced the world's first seven-speed

automatic transmission called '7G-Tronic'

Electronic Stability Programme (ESP), brake assist, and many other types of

safety equipment were all developed, tested, and implemented into passenger

cars first by Mercedes-Benz. Mercedes-Benz has not made a large fuss about

its innovations, and has even licensed them for use by competitors, in the

name of improving automobile and passenger safety. As a result, crumple

zones and anti-lock brakes (ABS) are now standard on all modern vehicles.

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MERCEDES-BENZ RESEARCH AND DEVELOPMENT INDIA

PVT. LTD. (MBRDI)

Mercedes-Benz stands for tradition, innovation and the future of the

automobile and represents quality and safety on roads throughout the world.

Mercedes-Benz Research and Development India Pvt. Ltd. (MBRDI), a 100% captive

unit of Daimler AG, was established as a research institute with eight employees in

1996 and currently has a capacity of 367 employees.

Based in Germany, Daimler AG with its business units Mercedes-Benz Cars,

Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler

Buses, is a global leading producer of premium passenger cars and the largest

manufacturer of heavy- and medium-duty trucks in the world. The companys

founders, Gottlieb Daimler and Carl Benz, continued to make automotive history

following their invention of the automobile in 1886. As an automotive pioneer,

Daimler and its employees are committed to excellence and act responsibly towards

society and the environment, to shape the future of safe and sustainable mobility with

groundbreaking technologies and high-quality products.

MBRDI is the largest Research and Development center of Daimler AG outside

Germany and contributes in the areas of Computer Simulation (CAE), Design

(CAD),and IT-Services.

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PRESS RELEASE

Mercedes Trophy 2010: Celebrating a decade of Golfing Excellence

Pune: The National Finals of 10th Edition of Mercedes Trophy in India concluded at

the Oxford Golf & Country Club in Pune. Commemorating a decade of resonance

with lan and brilliant golfing action, Mercedes-Benz, for the first time introduced a

ten leg club level qualifier in India organized across ten cities - Kolkata, Ahmedabad,

Mumbai, Hyderabad, Delhi, Chennai, Bangalore, Pune, Mumbai & Cochin. This was

followed by the Mercedes Trophy Regional Rounds that was played in four cities,

namely, Bangalore, Delhi, Chandigarh & Mumbai.

Mercedes-Benz continues to strengthen its position in India with record sales

numbers for Jan-Feb 2010

Pune: Continuing the high-octane start of 2010, Mercedes-Benz India today

announced a record sale of 439 units in February 2010, marking a growth of 78 %

over the same period in 2009 (246 units in Feb 2009). This brings the total sales

volume in Jan-Feb 2010 to 842 units (328 units in Jan-Feb 2009) which is a strong

growth of 157% on a year-on-year basis.

A responsibility we like to take

Mercedes-Benz India Private Limited (MB India) confirms warranty of Mercedes-

Benz passenger cars manufactured by MB India and CBU vehicles sold by MB India

in India.

Passenger Cars supplied by MB India are warranted to be free from defects in

materials due to manufacturing fault and workmanship and are covered under

warranty for a period of 24 months commencing from the date of first registration or

date of sales invoice/delivery note whichever comes earlier without mileage

limitation.

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A HISTORY OF EXCELLENCE

The history of Fiat began many years ago, at the dawn of Italian

industrialization, in which the company has always played a leading role. On 11 July

1899, the Fabbrica Italian Automobile Torino was founded and immediately became

known as FIAT. Since then, it has lived more a century of history and experience:

models, styles, design that touched several eras and made entire generations dream.

From that moment on, the Fiat brand spread throughout the world and

developed extensively. Today, following a change in corporate culture and mentality,

the name Fiat is still fraught with meaning, and not only on account of the cars we

produce cars with attractive styling and exciting engines, cars that are accessible and

improve the quality of everyday life but also on account of our heritage and

tradition: lets take a stroll back in time through the brands history.

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COMPANY FLASHBACK

Fiat is a big industrial Group having more than one hundred years' experience

in the motor vehicle sector, designing, manufacturing and marketing cars, trucks,

tractors, agricultural machinery, construction equipment, motor vehicle engines and

components, and production systems. Currently the Group is present in 190 countries

and it performs manufacturing and service activities through Operating Sectors that

can be divided into business areas.

Fiat Auto produces and sells automobiles under the Fiat, Alfa Romeo and

Lancia brands and light commercial vehicles (LCV) under the Fiat brand. The Group

also controls Maserati and Ferrari, the producer of luxury sports cars that excel for

their exclusive characteristics, technology and performance.

In India, Fiat is wholly managed by Fiat Auto Spa of Italy. Here the company

owns the brands Fiat , Alfa Romeo & Lancia. Fiat India is investing heavily in the

country.

Quick Facts

Country : taly

Year of Establishment : July 11, 1899 in Turin (Italy) as F.I.A.T

Industry : Automobiles manufacturing

Business Group : Fiat Auto Spa

Listings & its codes : NYSE: FIA; ISE: IT0001976403

Contact Details : LBS Marg, Kurla (W)Mumbai-400070

International Corporate : Via Nizza, 25010126 Turin Italy

Headquarters

Website : www.fiat-india.com

Global Website : www.fiatgroup.com

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THE NEW CARS OF THE 1990S

After the debut of the Fiat Tempra in 1990, the 500 came out in 1991. Two

years later, in 1993, it was the moment of Fiat Punto (named Car of the Year in

1995) and Fiat Coup, with bodywork designed by Pininfarina and Centro Stile Fiat

MULTIJET ENGINES

Fuel saving and top performing, this engine proved a real success factor on the

new Fiat car models. The new system born of the evolution of the Common Rail

principle is the basis of the new second-generation Fiat engines: the small 1.3

Multijet 16v, the sporty 1.9 Multijet 120 and 150 bhp and the powerful 1.4 90

THREE YEARS OF NEW MODELS

The years 2004-2006 were an extremely busy time for the Turin company,

which, following a profound change in corporate culture and mentality, focused on a

continuous, rapid overhaul of its products, on technological research, on the quality of

its designs and on a new, constructive relationship with the customer.

During these years, this new philosophy gave rise to a series of new models,

and some restyling of older models: from the restyling of the Fiat Idea Model Year,

Seicento MY and Stilo MY to the new Multipla and the launch of the Panda 4x4, in

2004; 2005 began with the launch of the new Croma, designed by Giugiaro, the new

600 (celebrating its 50th anniversary), and the Grande Punto - beautiful, solid and

exciting. 2006 saw the launch of the New Dobl and Sedici, the 4x4xTUTTI for city

and off-road driving, and the official car of the 2006 Olympic Winter Games, while

the Panda MY 2007 range was extended and overhauled.

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A NEW FIAT PLANNING THE FUTURE

Building a business is not just a question of technology or financial resources

of machine or invented. It is first and foremost a question of people, culture, ability

and commitment and the mindset of seeing the future as a great opportunity for all.

Active for over a century, the group has transformed its vocation for automobiles into

a strong commitment to all forms of mobility for people and goods from cars to

trucks, agricultural tractors and marine engines.

In recent years, the group has undergone a profound cul1tural change which

permeates every aspect of the organization. And today, Fiat is not only the largest

industrial business in Italy and a major international group, it is an enterprise which

has taken its future back to its own hands. The courage and desire to change have

enabled the group to achieve remarkable results. The numerous awards and

recognition received are acknowledgement of those results. But the greatest

recognition is every time a customer places his trust in fiat by buying one of our cars,

truck and tractors. And the group is prepared to play a major role in the restructuring

of the auto industry, an example of the role of fiats global strategic alliance wit h

Chrysler. Fiat has become a shareholder of the US group and will contribute its

world-class technology, platforms and powertrain for small and medium- sized cars to

Chrysler. As a result of the alliance, the group will also have a platform to once again

sell its cars in the United States. And Fiat recently announced 2010-2014 plans set a

course of significant growth. Today the group is a combination of two different

businesses: on one side, the automobiles and related components businesses and, on

the other. The truck and agriculture & from earth other in terms of their respective

economic cycles, profit margins and the capital requirements, as well as the

characteristics of their customers and markets. And even the stock market has always

valued them differently.

For this reasons, our plan also calls for a demerger of lveco and CNH, along

with the Industrial & Marine business of FPT Powertrain Technologies, from the

automobiles- related activities, which include Fiat Group Automobiles, Ferrari and

Maserali, Magneti Marelli, Teksi, Comau and the Passenger & commercial vehicles

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businesses of FPT powertrain Technologies. The demerger is expected to be

completed by the and of 2010.

The latest awards and recognition

Passenger cars and light commercial vechiles

Car of the year 2009 in India (Fiat Linea)

Auto Europe 2009 and best Car 2009(Alfa Romeo MiTo)

International Van of the Year 2009(Fiat Professional Form)

City car of the year2009, Die bestan Autos 2009,The best car of 2009 and bestcars 2009(Fiat 500)

Design award 2009(Lancia delta)

Car of the year 2008 and Auto Europe 2008(Fiat 500)

Clean Car of the year 2008 (Fiat Grande Punto)

Carro do Ano 2008 (Fiat Grande Punto)

Auto best 2008(Fiat Linea)

Prix Auto Environment 2008( Fiat Bravo)

Best design of the year 2008(Alfa Romeo 8C)

Veicolo Commercial dell Anno 2008(Fiat Professional new Ducato)

International Van of the Year 2008( Fiat Professional Scudo)

TRUCKS AND COMMERCIAL VEHICLES

Green Commercial of the year 2009(lveco Daily CNG)

Transport/logistics innovation of the year 2009(lveco Ecodaily Blue & Me

Fleet)

Autobus Truistico 2009(lveco irisbus Magelys)

Best light truck 2008 Best large Van 2008(lveco Daily)

Coach of the year 2008(lveco irisbus Magelys)

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Fiat autonomy

Unrestricted mobility

The Fiat Autonomy program is intended to encourage, assist and also to

achieve a major goal: unrestricted freedom of movement for everyone, including the

motory and sensorial impaired and intellectually challenged.

At the Fiat Dealers network, you will find staff specialized in Autonomy,

specifically trained in driving techniques and transport of the disabled.

Fiat India Automobiles achieves sales growth of 82% in May 2010.

01/06/2010 - FIAT India Automobiles Ltd today announced a growth of 82%

in sales for the month of May 2010 over May 2009. Fiat Indias total sales (including

exports) of FIAT branded vehicles in May 2010 stood at 2,235 as compared to 1,227

vehicles sold in May 2009.

CORPORATE GOVERNANCE

The corporate governance structure is comprised of a system of management

and control and shareholder meetings. Pursuant to law, external auditors are

responsible for independent audits.

Fiat adopted a system of management and control based on a Board of

Directors and a Board of Statutory Auditors. In this structure, the Board of Directors,

which is responsible for management and ensures, both as a collegiate body and

through specially designated consulting and advisory internal committees, that the

necessary controls exist to monitor Company performance, is flanked by another body

separate from the Board of Directors that is vested with independent jurisdiction and

powers and appointed according to the requirements of professionalism, integrity, and

independence as prescribed by law and Fiats By-laws.

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2009 HIGHLIGHTS OF FIAT GROUP

(in millions) Revenues Trading(P&L)

Employee

at the year

end

R&D

expense

Units Sold

FIAT

GROUP50,102 1058 190,014 1,692

FGA 26,293 470 54,038 669 2,150,700

MASERATI 448 11 723 33 4,489

FERRARI 1,778 238 2,835 156 6,193

CNH 10,107 337 28,446 283

INECO 7,183 105 24,917 169 103,866

FPT 4,952 25 19,638 140

MAGNETI

MARELLI4,528 25 31,628 245

TEKSID 578 12 6,194 2

COMAU 728 28 11,708 10

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Innovation and technology

The Fiat group believes that innovation which is sustainable and puts people,

society and the environment first is fundamental to strengthening its position. The

group has 14,000 people at 117 research and development centers who are dedicated

to anticipating and satisfying the needs of customers and transforming creative ideas

into innovative products and services that can contribute towards an increasingly

sustainable mobility.

To achieve this important objective, all Fiat Group Sectors are equipped with

an internal unit dedicated to innovation and engineering; Centro Ricerche Fiat (CRF)

and basis work at inter-sector level to develop innovative content that can be shared

across the group. A range of innovative and tools are also utilized to constantly

promote innovation and the exchange of ideas. These include creating specific cross

sector projects, organizing innovation days, where research results are presented, and

technology days, which offer an opportunity to exchange technical and specialist

knowledge with suppliers, as well as collecting employee suggestions for

improvements to production processes within the scope of the world class

manufacturing program.

Economic responsibilty

An intense and constructive dialogue with suppliers and customers, a

commitment to generating profit, providing a return to shareholders and meeting their

expectations: these are keys to the international development plan being pursued by

the Fiat group.

The results achieved in terms of revenues and the decreases in industrial debt

have instilled confidence in the fiat Groups potential. The Group rsum payment of

dividends and has the financial resources available to pursue its investment plans.

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INTRODUCTION OF SUBJECT

Finance is defined as the art and science of managing money. The major areas of

finance are:

Financial services

Financial management

While financial services is concerned with the design and delivery of advice and

financial products to individuals, businesses and governments within the areas of

banking and related institutions, personal financial planning, investments, real estate,

insurance and so on, financial management is concerned with the duties of financial

managers in the business firm. Financial managers actively manage the financial

affairs of any type of business, namely, financial and non-financial, private and

public, large and small, profit seeking and not-for-profit. They perform such varied

tasks as budgeting, financial forecasting, cash management, credit administration,

investment analysis, funds management and so on.

Financial Analysis and Review:-

Financial Analysis and Review involves the application of analytical tools and

techniques to the financial data to get information that is useful in decision making.

The foundation of any good analysis is a thorough understanding of the objectives to

be achieved and the uses to which it is going to be put. Such understanding leads to

economy of effort as well as to a useful and most relevant focus on the points that

need to be clarified and the estimates and projections that are required.

Financial analysis is oriented towards the achievement of definite objectives.

There are three types of users to whom the financial analysis could be useful. They

are short-term lenders, long-term lenders and finally stockholders. The process of

financial analysis can described in various ways, depending on the objectives to be

obtained. Financial analysis can be used as a preliminary screening tool in the

selection of stocks in the secondary market. It can be used as a forecasting tool of

future financial conditions and results. It may be used as a process of evaluation and

diagnosis of managerial, operating and other problem areas. Financial analysis

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reduces reliance on intuition, guesses and thus narrows the areas of uncertainty that is

present in all decision making process. Financial analysis does not lessen the need for

judgment but rather establishes a sound and systematic basis for its rational

application.

Sources of financial information:-

The financial data needed in the financial analysis come from many sources.

The primary source is the data provided by the firm itself in its annual report and

required disclosure. The annual report comprise of the income statement, the balance-

sheet and the statement of cash flows, as well as footnotes to those statements.

Besides this, information such as the market price of securities of publicly traded

corporations can be found in financial press and the electronic media daily. The

financial press also provides information on stock price indices for industries and for

the market as a whole.

Financial statement: - A financial statement means a picture of concern financial

position and operating result in consoled form.

Definition:-

"A financial statement is the end product of a financial accounting system

and it may be described as a portrait of the financial performance of the

company.

Every financial manager is involved in financial decision making and

financial planning in order to take right decision at right time, he should be equipped

with sufficient past and present information about the firm and its operations and how

it is changing overtime. Much of this information that is used by financial manager to

take various decisions and to plan for the future is derived from the financial

statements. A financial statement is the compilation of data, which is logically and

consistently organized according to accounting principles. Its purpose is to convey an

understanding of some financial aspects of a business firm. It may show a position at

a moment in time, as in the case of balance-sheet, or may reveal a series of activities

over a given period of time, as in the case of an income statement. Financial

statements are the major means through which firms present their financial situation

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to creditors, stock-holders and general public. The majority of firms include extensive

financial statements in their annual reports, which are distributed widely.

Financial analysis involves the use of various financial statements. These

statements do several things. First, the balance sheet summarizes the assets, liabilities

and owners equity of a business at moment in time, usually the end of a year or a

quarter. Next the income statement summarizes the revenues and expenses of the firm

over a period of time while balance sheet represents a snapshot of the firm s financial

position at a moment in time.

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AFINANCIAL ACCOUNTING SYSTEM HAS THE

FOLLOWING STAGES.

BUSINESS TRANSACTIONS

ENTRY

BOOKS OF PRIME ENTRY

BOOKS OF SECONDARY ENTRY- LEDGER

TRAIL BALANCE

FINANCIAL STATEMENT

In India, financial statements do not include a separate statement showing

changes in equity.

RATIO ANALYSIS

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Ratio analysis is widely used-tool of financial analysis. It can be used to compare

the risk and return relationship of firms of different sizes. It is defined as the

systematic use of ratio to interpret the financial statements so that the strength and

weakness of the firm as well as its historical performance and current financial

condition can be determined. Trend ratios involve a comparison of the ratios of a firm

over time, that is, present ratios are compared with past ratios for the same firm. The

comparison of the profitability of a firm, say, year 1 through 5 is an illustration of a

trend ratio. Trend ratios indicate the direction of change in the performance-

improvement, deterioration or constancy over the years.

Ratio analysis is the process of determining and interpretation mathematical

relationship based on financial statement. The comparison of financial ratios against

the norms established helps to diagnosis the financial condition and arrive at

conclusions.

The comparison of financial ratios is done against the following:-

Standard set

Historical figures

Inter-firm analysis

Ratio analysis is considered as a powerful tool of financial analysis through

which economic and financial position of the business can be fully X-rayed. They

provide a coordinated frame of reference for judging financial performance. They

convey the entire story of the financial adventure of the enterprise. They

comprehend and simplify a heap of financial data through one particular figure which

conveys the complete meaning. They focus on the specific relationship in the

financial statements. Ratio analysis is not an end in itself. It is merely a means ofknowing the financial strength and weakness of a firm. One can calculate no. of ratios

from the information given in the financial statement but exactly which ratio is to be

calculated this decision depends on the intention of the analysis for which he wants to

analysis and interpret the data.

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Uses of ratio analysis:-

It helps to understand the efficiency and performance of the firm as a

whole.

Its main purpose is to gain insights into the operating and financial

problems confronting the firm.

It helps to pinpoint relationship that is not obvious from the financial

statements.

It helps to highlight the factors responsible for the present state of

financial statements.

It helps the shareholders in evaluating the firms activities and policiesthat affect the profitability, liquidity and ultimately the market price of

the shares

It helps to examine the adequacy of funds, the solvency of the firm and

its ability to meet the financial obligations as and when they become

due.

It is very useful in inter-firm and intra-firm analysis.

A trend can be established by calculating ratios for number of years.

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IMPORTANCE OF RATIO ANALYSIS

Accounting ratio reveals the financial positions of a business firm. This helps

bank, insurance companies as well as other financial institutions, in assessing

a firm before sanctioning any loan to them.

Similarly, the ratios are very helpful to investors for finding the profitability of a

firm.

The ratio are very helpful in inter firm and intra-firm comparisons. Inter-firm

comparisons are necessary to find out the exact position of a firm as compared

to other firms in the same industry.

Intra-firm comparison is also necessary to compare the performance of a firm ofcurrent year with that of previous year.

If accounting ratios are calculated for a no. of years a trend can be established.

The trend helps in setting future plans and forecasting.

The ratio is calculated by dividing one figure by the other figure. It may be

expressed in any of the three ways Times, Proportion, Percentage according

to the convenience or suitability.

LIMITATIONS OF RATIO ANALYSIS

There may be a difference between the inventory methods followed by

various firms or different method in the same firm.

Firms follow various methods of depreciation.

There may be a difference between the capital structures of the firms.

Inflationary factors are not taken into consideration. Thus when the past

performance is analyzed, the figures may have become outdated

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2. ACID-TEST RATIO

Also called the quick ratio, the acid test ratio is defined as:

This ratio is better tool to measure the ability to honor day to day

commitments. It is the ratio between the liquid assets and liquid liabilities. From the

balance sheet, liquid assets are calculated by deducting inventories and prepaid

expenses from current assets. Liquid liabilities are current liabilities less bank

overdraft.

`The ideal liquid ratio is considered to be 1:1, which means that liquid current

assets should be equal to the liquid current liabilities. This ratio indicates whether the

firm has the ability to pay its short-term liabilities or not.

3. ABSOLUTE LIQUID RATIO

Sometimes, financial analyst looks at absolute liquid ratio, which is defined as:

This is very stringent measure of liquidity. Indeed lack of immediate cash may

not matter if the firm can stretch its payments or borrowed money at short notice.

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ACID-TEST RATIO = LIQUID CURRENT ASSETS

LIQUID LIABILITIES

ABSOLUTE LIQUID RATIO=CASH AT BANK + SHORT-TERM INVESTMENTS

CURRENT LIABILITIES


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In using this ratio however, the following points should be borne in mind

The book value of equity may be an understatement of its true value in

a period of rising prices. This happens because assets are carried atthere historical values less depreciation, not a current values.

Some form of debt (like term loan, secured debenture and secured

short-term bank borrowings)are usually protected by charges on

specific assets and hence enjoy superior protection.

3. PROPRIETARY RATIO

It is primarily the ratio between the proprietors funds and total assets.

This ratio indicates the proportion of proprietors fund used for financing the

total assets a high ratio will indicate high financial strength, but a very high

ratio will indicate that the firm is not using external funds adequately.

` This ratio is calculated with the help of following formula:

(A)

(B)

(C)

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PROPRIETARY RATIO= TOTAL ASSETS

OWNERS FUND

PROPRIETARY RATIO= FIXED ASSETS

OWNERS FUND

PROPRIETARY RATIO= CURRENT ASSETS

OWNERS FUND


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TURNOVER RATIOS

The ratios computed under this group indicate the efficiency of the organization

to use the various kinds of assets by converting them in the form of sales. As the

assets can be basically categorized as FIXED ASSET and CURRENT ASSETS

and as the current assets may further be classified according to the individual

components of current assets viz. inventory and receivables or debtor or as net

current asset i.e. current assets less current liabilities viz. working capital, under

this group of classification of ratios, following ratios may be computed:

1. FIXED ASSET TURNOVER RATIO

It is calculated as:

Net sales include sales after returns if any, both cash as well as credit.

Fixed assets include net fixed assets i.e. fixed assets after providing for

depreciation.

INDICATION/PRECAUTIONS

A high fixed assets turnover ratio indicates the capabilities of the organization

to achieve maximum sales with the minimum investment in fixed assets. It

indicates that the fixed assets are turned over in the form of sales more number of

times. As such, higher the fixed assets turnover ratio better will be the situation.

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FIXED ASSET TURNOVER RATIO = NET SALES

FIXED ASSETS


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2. CURRENT ASSETS TURNOVER RATIO:


Net sales include sales after returns if any, both cash as well as credit.

Current Assets include the assets like inventories, sundry debtors, bills

receivables, and cash in hand or at bank, marketable securities, prepaid expenses

and short term loans and advances.

INDICATION/PRECAUTIONS

A high current assets turnover ratio indicates the capability of the organization

to achieve maximum sales with the minimum investment in current assets. It

indicates that the current assets are turned over in the form of sales more number

of times. As such, higher the current assets turnover ratio better will be the

situation.

3. INVENTORY/STOCK TURNOVER RATIO


A high inventory turnover ratio indicates that maximum sales turnover is

achieved with the minimum investment in inventory. As such as a general rule,

high inventory turnover ratio is desirable. However the high inventory turnover

ratio should be viewed from some more angles. Firstly it may indicate that there is

under investment in inventory whereby the organization may lose customer

patronage if it is unable to maintain the delivery schedule. Secondly, high

inventory turnover ratio may not necessarily indicate profitable situation. An

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CURRENT ASSETS TURNOVER RATIO = NET SALES

CURRENT ASSETS

INVENTORY/STOCK TURNOVER RATIO = NET SALES

AVERAGE INVENTORY


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RESEARCH METHODOLOGY

MEANING OF RESEARCH:

Research is systematic process of collecting and analyzing information in

order to increase our understanding of the phenomenon about which we are concerned

or interested. It is a purposive investigation of hypothetical propositions. Research as

a process involves defining and redefining problems, hypothesis formulation,

organizing and evaluating data, deriving deductions, inferences and conclusion, after

careful testing.

STEPS IN RESEARCH METHODOLOGY:

Step 1: To decide Objective of the study

Study the constituents and the concept of Financial Analysis and Review.

Analyze and interpret Financial Position of the companies

Step 2: To decide Research Design

What is Research Design?

Research Design is a logical and systematic planning and directing of piece of

research. Research design attempts to integrate various aspects of research

study. Such as what, where, when, how, etc. It is a plan structure and strategy

of investigation.

Step 3: To determine Sources of Data

DATA COLLECTION

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The purpose of data collection is to obtain information to keep on record, to

make decisions about important issues, to pass information on to others. Primarily,

data is collected to provide information regarding a specific topic.

What are Sources of Data?

SECONDARY DATA:

Data that has been collected earlier for some purpose other than the purpose

for present study, the data already available are called secondary data. To avoid

duplicating efforts, running up unnecessary costs and tiring the informants, it is

recommended wherever possible to rely on existing information.

The sources used for collecting secondary data for this research are:

Balance Sheets, Income Statements and necessary records.

Websites.

CHARACTERISTICS OF RESEARCH:

1. Research is directed towards the solution of problems.

2. Originates with a question or problem.

3. Follows a specific plan or procedure.

4. Research demands accurate observation and description.

5. Accepts certain critical assumptions.

6. Requires collection and interpretation of data.

7. Cyclical (regular) in nature.

8. Research is carefully recorded and reported.

COMMONLY USED RESEARCH METHODOLOGIES

Qualitative vs. Quantitative :

Qualitative research is collecting; analyzing and interpreting data by

observing what people do and say i.e. meanings, concept, definitions,

characteristics, metaphors, symbols, and descriptions of things.

Quantitative research refers to research involving counts and measures of

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things. It can also be called as phenomenon relating to or involving quality

or kind.

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Descriptive vs. Analytical:

Descriptive research attempts to determine, describe, or identify what is its

use, description, classification, measurement, and comparison to describe

what phenomenon are, while analytical research attempts to establish whyit is that way or how it came to be. The analytical research usually

concerns itself with cause- effect relationships.

Conceptual vs. Empirical:

Conceptual research is that related to some ideas or theory. It is

generally used by philosophers and thinkers to develop new concepts or to

reinterpret existing ones.

Empirical research relies on experience or observation alone often without

due regard for system and theory.

Applied vs. Fundamental

Applied research focuses on solving an immediate problem faced by a

society or an industrial / business organization.

Fundamental research has its primary objective the advancement of

knowledge and the theoretical understandings of the relations among

variables.

METHODOLOGY USED FOR THE STUDY:

The information for the project work collected from the secondary source. The

balance-sheet and profit and loss account of both the companies was taken from

the registrar of companies.

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{NOTE: All the data used for the following data analysis has been taken from

the Annexure (Balance Sheet and Profit and loss Account)}

LIQUIDITY RATIOS

1) CURRENT RATIO:

Current ratio indicates the backing available to current liabilities in the

form of current assets.

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES

FIAT (in Rs)

YEARS 2007 2008 2009

CURRENTASSETS

740191838.00 2796722515.00 14756096180.00

CURRENTLIABILITIES

755198302.00 8613225427.00 24904775889.00

RATIO 0.98 0.32 0.59

MERCEDEZ-BENZ (in Rs.)

YEARS 2007 2008 2009

CURRENTASSETS

3966739000.00 6271249000.00 11587536000.00

CURRENTLIABILITIES

986788000.00 2714031000.00 5634095000.00

RATIO 4.01 2.31 2.05

RATIOS

COMP/YEARS 2007 2008 2009

FIAT 0.98 0.32 0.59

MERCEDEZ 4.01 2.31 2.05

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INTERPRETATION: -Current ratio indicates the solvency of the company. It shows

the proportion of current assets to current liabilities. Normally, it is expected that

current ratio should be 2: 1.it is clear from the graph, Fiat current ratio is less than the

ideal ratio, where as in case of Mercedes-Benz the ratio is more, Mercedes-Benz is

financially stronger than the Fiat.

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2)ACID TEST RATIO:

Liquid ratio indicates the backing available to liquid liabilities in the form of

liquid assets. Liquid assets include all current assets except inventories and prepaid

expenses. Liquid liabilities include all current liabilities except bank overdraft or cash

credit.

ACID TEST RATIO = LIQUID ASSETS

LIQUID LIABILITIES

FIAT (in Rs.)

YEARS 2007 2008 2009

LIQUIDASSETS

358256826.00 1592429562.00 8441947987.00

LIQUIDLIABILITIES

755198302.00 8613225427.00 24904775889.00

RATIO 0.47 0.18 0.34


YEARS 2007 2008 2009

LIQUIDASSETS

2891684000.00 4053704000.00 7607493000.00

LIQUIDLIABILITIES

986788000.00 2714031000.00 5634095000.00

RATIO 2.93 1.49 1.35

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.47 0.18 0.34

MERCEDEZ 2.93 1.49 1.35

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INTERPRETATION:-This ratio indicates the proportion of quick assets to quick

liabilities. The ideal Acid Test Ratio should be 1:1 which means that the quick assets

should be equal to quick liabilities. In case of Fiat the quick assets should be increase

and in case of Mercedes-Benz the quick liabilities should be increase.

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3) ABSOLUTE LIQUIDITY RATIO:

It indicates the backing available to current liabilities in the form of cash at

bank & short term investment.

ABSOLUTE LIQUIDITY RATIO = CASH AT BANK + SHORT TERM

INVESTMENT

CURRENT LIABILITIES

FIAT (in Rs.)

YEARS 2007 2008 2009

CASH ATBANK +SHORT

TERM INVES

5960129.00 2621493.00 2164214179.00

CURRENTLIABILITIES

755198302.00 8613225427.00 24904775889.00

RATIO 0.01 0.01 0.09

MERCEDEZ- BENZ (in Rs.)

YEARS 2007 2008 2009

CASH ATBANK +SHORT

TERM INVES

333820000.00 543861000.00 496546.00

CURRENTLIABILITIES

986788000.00 2714031000.00 5634095000.00

RATIO 0.33 0.20 0.01

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.01 0.01 0.09

MERCEDEZ 0.33 0.20 0.01

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INTERPRETATION: - This is very stringent measure of liquidity. Indeed lack of

immediate cash may not matter if the firm can stretch its payments or borrowed

money at short notice. In case of Mercedes-Benz the ratio was 0.33 in 2007, which

decreased in 2008, 2009 rapidly to 0.20, 0.01 respectively. While, ratios of fiat are

constant in the year 2007, 2008 i.e. 0.01.It increased in 2009 to 0.09.

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4) CURRENT ASSETS TO FIXED ASSETS:

This ratio shows the proportion of current assets to fixed assets.

CURRENT ASSETS TO FIXED ASSETS = CURRENT ASSETS

FIXED ASSETS

FIAT (in Rs.)

YEARS 2007 2008 2009

CURRENTASSETS

740191838.00 2796722515.00 14756096180.00

FIXEDASSETS

4151849029.00 15878119555.00 32886981093.00

RATIO 0.18 0.17 0.44


YEARS 2007 2008 2009

CURRENT

ASSETS

3966739000.00 6271249000.00 11587536000.00

FIXEDASSETS

2850951000.00 4062430000.00 1549135000.00

RATIO 1.39 1.54 7.48

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.18 0.17 0.44

MERCEDEZ 1.39 1.54 7.48

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INTERPRETATION: -This ratio indicates the proportion of current assets to fixed

assets. In case of Fiat the fixed assets are more than the current assets whereas in case

of Mercedes-Benz current assets are more than the fixed assets. In the graph, the ratio

of Mercedes-Benz has increased gradually from the year 2007 to 2009, which shows

that the company has invested heavily in the current asset in 2009. Where as in case

of fiat the ratio is almost constant and shown a mere increase in the current asset in

2009.

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LEVERAGE RATIOS

1) DEBT TO TOTAL ASSETS RATIO:

The debt-asset ratio measures the extent to which borrowed fundssupport the firms assets.

DEBT TO TOTAL ASSETS RATIO = DEBT

ASSETS

FIAT (in Rs.)

YEARS 2007 2008 2009

DEBT 808000000.00 1796301141.00 15386116863.00

TOTALASSETS

4892040867.00 18674842070.00 47643077233.00

RATIO 0.17 0.10 0.32

MERCEDEZ- BENZ (in Rs.)

YEARS 2007 2008 2009

DEBT 0.00 0.00 368759000.00

TOTALASSETS

6817690000.00 10333679000.00 13136671000.00

RATIO 0.00 0.00 0.03

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.17 0.10 0.32

MERCEDEZ 0.00 0.00 0.03

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INTERPRETATION: - The debt-asset ratio measures the extent to which borrowed

funds support the firms assets. In case of Fiat they dont have an enough borrowed

fund to support the firms assets, and the same case is with Mercedes- Benz, but still

Mercedes-Benz has more borrowed fund than that of Fiat.

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3) PROPERTEIRY RATIOS

It is primarily the ratio between the proprietors funds and total assets. This

ratio indicates the proportion of proprietors fund used for financing the total assets a

high ratio will indicate high financial strength, but a very high ratio will indicate that

the firm is not using external funds adequately.

(A) PROPERTEIRY RATIOS = CURRENT ASSSETS

OWNERS FUND

FIAT (in Rs.)

YEAR 2007 2008 2009

CURRENTASSETS

740191838.00 2796722515.00 14756096180.00

OWNERSFUND

35925605341.00 8230438610.00 19522513017.00

RATIO 0.02 0.34 0.76


YEAR 2007 2008 2009

CURRENTASSETS

3966739000.00 6271249000.00 11587536000.00

OWNERSFUND

7685748000.00 7324525000.00 7526435000.00

RATIO 0.52 0.86 1.54

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.02 0.34 0.76

MERCEDEZ 0.52 0.86 1.54

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INTERPRETATION: - In case of Fiat the ratio is less, so owners fund are locked

up in current assets, the Mercedes-Benz condition is better than the Fiat but in 2009, it

is in very good condition as the ratio is more than 1.

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(B) PROPERTEIRY RATIOS = FIXED ASSETS

OWNERS FUND

FIAT (in Rs.)

YEAR 2007 2008 2009

FIXEDASSETS

4151849029.0015878119555.0

032886981093.00

OWNERSFUND

35925605341.00

8230438610.00 19522513017.00

RATIO 0.12 1.92 1.68


YEAR 2007 2008 2009

FIXEDASSETS

2850951000.00 4062430000.00 1549135000.00

OWNERSFUND

7685748000.00 7324525000.00 7526435000.00

RATIO 0.37 0.55 0.20

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.12 1.92 1.68

MERCEDEZ 0.37 0.55 0.20

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INTERPRETATION: - In case of Fiat the ratio is less than 1 it indicates that a part

of owners fund is invested in the current assets also, whereas in case of Mercedes-

Benz in years 2008 and 2009 it is showing that a part of fixed assets is financed by the

creditors either long term or short term.

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INTERPRETATION: - It is primarily the ratio between the proprietors funds and

total assets. This ratio indicates the proportion of proprietors fund used for financing

the total assets a high ratio will indicate high financial strength, but a very high ratio

will indicate that the firm is not using external funds adequately. In case of Fiat in

2008 and 2009, the financial conditions are very good, and in case of Mercedes-Benz

the firm is not using the funds properly.

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TURNOVER RATIOS

1) FIXED ASSETS TURNOVER RATIO

This ratio indicates the amount of sales realized per rupee of investment infixed assets.

FIXED ASSETS TURNOVER RATIO = NET SALES

FIXED ASSETS

FIAT (in Rs.)

YEAR 2007 2008 2009

NET SALES 60412287 857264200 6918878789

FIXEDASSETS

4151849029 15878119555 32886981093

RATIO 0.01 0.05 0.21


YEAR 2007 2008 2009

NET SALES 6674007000 9538835000 11318576000

FIXEDASSETS

2850951000 4062430000 1549135000

RATIO 2.34 2.35 7.30

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.01 0.05 0.21

MERCEDEZ 2.34 2.35 7.30

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INTERPRETATION: -This ratio indicates the amount of sales realized per rupee of

investment in fixed assets. This ratio is more important in manufacturing concerns, as

it indicates the utilization of fixed assets. The higher the ratio higher will be the

amount of sales generated per rupee of investment in fixed assets. In the above chart it

is advisable to both the firm to increase the ratio, which will result in higher amount

of turnover whereas the Mercedes-Benz has a better ratio than Fiat especially in 2009.

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2) CURRENT ASSETS TURNOVER RATIO

A current assets turnover ratio indicates the capability of the organization to

achieve maximum sales with the minimum investment in current assets.

CURRENT ASSETS TURNOVER RATIO = NET SALES

CURRENT RATIO

FIAT (in Rs.)

YEAR 2007 2008 2009

NET SALES 60412287 857264200 6918878789

CURRENTASSETS

740191838 2796722515 14756096180

RATIO 0.08 0.31 0.47


YEAR 2007 2008 2009

NET SALES 6674007000 9538835000 11318576000

CURRENTASSETS

3966739000 6271249000 11587536000

RATIO 1.68 1.52 0.98

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.08 0.31 0.47

MERCEDEZ 1.68 1.52 0.98

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INTERPRETATION: - The ratios of the fiat indicates that firm is not achieving

maximum sales but investing more in current assets where as in case of Mercedes-

Benz in 2007 and 2008 the firm was achieving maximum sales with the minimum

investments in current assets and the firm was in better situation, but in2009 it was

again not in good situation as the ratio was very low.

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3) INVENTORY/ STOCK TURNOVER RATIO

This ratio establishes a relationship between the cost of goods sold during a

given period and the average amount of inventory held during that period.

INVENTORY/ STOCK TURNOVER RATIO = NET SALES

AVERAGE INVENTORY

FIAT (in Rs.)

YEAR 2007 2008 2009

NET SALES 60412287 857264200 6918878789

AVERAGEINVENTORY

381935012 1204292953 6314148193

RATIO 0.16 0.71 1.10


YEAR 2007 2008 2009

NET SALES 6674007000 9538835000 11318576000

AVERAGEINVENTORY

1075055000 2217545000 3980043000

RATIO 6.21 4.30 2.84

RATIO

COMP/YEARS 2007 2008 2009FIAT 0.16 0.71 1.10

MERCEDEZ 6.21 4.30 2.84

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INTERPRETATION: - This ratio establishes the relationship between the cost of

goods sold during a given period and the average amount of inventory held during

that period. A higher ratio is better as it shows the rapid turnover of stock and

consequently shorter holding period, on the other hand if the ratio is lower it indicates

that the stock is slow moving and there is longer holding period.In the above chart

inventory turnover ratio of Mercedes-Benz is showing a downward trend, hence it

should be increased to reduce the holding period where as in case of Fiat it is going

upward so it should keep going in the same manner.

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4) CAPITAL TURNOVER RATIO

This ratio indicates the efficiency of the organization with which the capital

employed is being utilized.

CAPITAL TURNOVER RATIO = NET SALES

CAPITAL EMPLOYED

FIAT (in Rs.)

YEAR 2007 2008 2009

NET SALES 60412287 857264200 6918878789

CAPITALEMPLOYED 20428126500 10026739751 28796047864

RATIO 0.01 0.09 0.24


YEAR 2007 2008 2009

NET SALES 6674007000 9538835000 11318576000

CAPITALEMPLOYED

6000000000 6000000000 6555512000

RATIO 1.73 1.59 1.11

RATIO

COMP/YEARS 2007 2008 2009

FIAT 0.01 0.09 0.24

MERCEDEZ 1.73 1.59 1.11

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INTERPRETATION: - I

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