prashant_bajaj_auto S.Y

8/6/2019 prashant_bajaj_auto S.Y.

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SectionSectionSectionSection 1.1.1.1.

Introduction AboutIntroduction AboutIntroduction AboutIntroduction About

Automobile Industry.Automobile Industry.Automobile Industry.Automobile Industry.

1.1 HISTORY ABOUT THE AUTOMOBILE INDUSTRY 2

1.2 INTRODUCTION ABOUT THE AUTOMOBILE IND. 3

1.3 FOREIGN PLAYERS IN INDIA 4

1.4 MARKETS 5


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1.11.11.11.1

History Of The Automobile IHistory Of The Automobile IHistory Of The Automobile IHistory Of The Automobile Ind.nd.nd.nd.

The world automobile industry is witnessing an unprecedented scale of change in the 1990s.The end of Cold War structure, the rapid spread of the information revolution and the international

economic globalization. The wave of globalization has directly affected the international automobile

industry and has accelerated the global reorganization of it. First, the impact of globalization

emerged in the financial and securities industries, which experienced the Big Bang in the 1980s.

Then it spread to the fast growing information and communications industries. Now the automobile

industry is no exception. The automobile industry was, especially in advanced countries, primarily a

national industry, no matter how internationalized its business content developed. It has been a

representation of a nations manufacturing industry serving the best interests of the nation. Take

trade disputes concerning automobiles for instance. It has been discussed as being related to thearguments of what should be the correct way to handle automobile trade, the balance of trade, and

the job security for a countries labor force. The automobile industry also has a wide range of related

industries such as the component or material industries, on which it has had a great impact at an

entire national level. In this sense, the industry was the national industry. Because of this

background, automobile manufacturers in advanced nations constructed their management

strategies that centered on their own country. And their overseas strategies tightly connected to the

domestic strategies and had a strong tendency to compliment them, no matter how heavily they

depended on their overseas business and exports. Therefore car manufacturers competitiveness

was closely related to how superior their competitiveness is in their domestic markets. Against thisbackdrop, especially in the 1980s, and before the 1990s when globalization rapidly developed, the

automobile industries competed with each other at a nation-to-nation level. In addition to that, we

still remember that the Japanese automobile industry was the one that grew rapidly by the so-called

lean production method and which had grave impacts on the European and American automakers.

They have to explicitly state that the lean production revolution ignited reforms taking place in the

Western countries. Under the reforms, automobile manufacturers in those countries executed

restructuring several times although their stance and approaches might be different. They carried

out drastic reforms that ranged from their product development to production systems in factories

and to the systems used for component purchases. This trend led to the globalization in the 1990s.Needless to say, economic globalization means a free and rapid flow of management resources

(people, goods, money and information) beyond national borders. Business activities expand

beyond the framework of one nation and dynamically develop everywhere in the world as far as

markets exist. We can observe this trend in sections of the automobile industry such as;

a) Product development,

b) Supply systems including factory locations,


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c) Systems to purchase from the suppliers of parts, components,

d) Production systems at factories,

e) Automobile sales and distribution systems

All of these are not contained within the framework of a country, but they have been

developed into a global base. It must also be pointed out that they are integrated under a global

management strategy. Therefore it is now possible to clarify the direction of global business. This

globalization of the automobile industry not only enables the business procedures stated above to

take place, but also makes them necessary conditions for the automobile manufacturers to survive

in the international arena whether or not they conduct mergers or amalgamations. It is because the

economic globalization has made human and financial resources global as well. Against this very

background, the recent reorganization of the global automobile industry is developing. Some

processes of reorganization are putting major focus on scale economy at the global level and

attracting public attention in cases like Daimler Chrysler and Nissan Renault. Other

manufacturers like Honda are promoting their own global strategies by themselves.

1.21.21.21.2

IntroductionIntroductionIntroductionIntroduction AAAAboutboutboutbout TTTThe Automobile Ind.he Automobile Ind.he Automobile Ind.he Automobile Ind.

The growth curve of India Auto Inc. has been on an upswing for the past few years. India

became the fastest growing car market in the world in 2004, with a growth rate of 20 per cent.

Continuing the upswing, the sector posted an impressive 8.9 per cent growth in 2005-06, says the

Economic Survey 2005-06. The latest announcement by the Government to cut excise duty onsmall cars will soon see India emerging as the worlds largest manufacturing hub for small or

compact cars.

The Indian automobile industry is likely to attract an investment of US$ 6.7 billion by 2007.

Domestic auto sales grew 12.9 per cent during the April-November 05 period, compared to

the same period last year, according to Society of Indian Automobile Manufacturers (SIAM).

Sales of commercial vehicles trucks and buses stood at 34,037 units in January 2006,

up from 29,634 in January 2005, while sales in April 2005-January 2006 were 271,979 units

against 252,919 year on year. Within the industry, light commercial vehicles led with a 21 percent growth, touching 89,843 units.

Taking the second spot as a growth category were three wheelers which grew 14.5 per cent

to 2,25,714 units. Two wheelers, the largest single category in Indias auto industry, grew 14

per cent to 46.4 lakh units in April-November 05. In this important category, it was

motorcycles and step-troughs which continued to ride on the growth curve, growing 19 per


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cent to 38.1 lakh units, accounting for over 82 per cent of all two wheelers sold till mid

December 2005.

Exports of automobiles as a proportion of total production have increased from 2.9 per cent

in 1999-2000 to 8.9 per cent in 2005-06, according to the Economic Survey.

1.31.31.31.3

Foreign Players In India:Foreign Players In India:Foreign Players In India:Foreign Players In India:----

Calendar 2006 will see the entry of many high-end brands into the country. The Indian

automobile market will see at least 30 new launches, spanning everything from affordable

hatchbacks to mid-size models to super luxury high-end cars and SUVs.

Mercedes, BMW, Porsche, Audi, Bentley and Rolls Royce are already here. Now, the Italian

marquee Lamborghini is also planning to enter the country. The Italian marquee plans tolaunch the Gallardo.

Audi will be launching the Audi A4, followed by the Q7 SUV in June-July and the RF4 by the

year-end. Also due in the first quarter is the Aveo launch from General Motors. The General

Motors stable has plans to bring in a sporty variant of the Chevy Optra to add to its existing

line-up.

Maruti is planning a premium mid-size car this year to be positioned above the Baleno. And

with the diesel plant up and running, Swift will roll out with a diesel option giving Indica some

tough competition. Arch rival Hyundai will also launch a premium mid-size model, the Verna. Adding to the mad rush for mid-size market share will be the Honda Civic, due in mid-2006.

The Civic, which will be in the US$ 20,273-US$ 22,527 category, will give some competition

to Toyota Corolla and Skoda Octavia. Skoda, for its part, is planning two new Octavia

variants on the VW A5 platform that will offer the range some more variety.

1.41.41.41.4

Markets:Markets:Markets:Markets:----

At less than 31 two-wheelers per 1,000 citizens in 2004, India is a poorly penetrated market

for motorcycles - even after accounting for a relatively low per capita income of around US$3,100

per year on purchasing power parity (PPP) basis. Indonesia, whose PPP per capita income is just

15 per cent greater than India's, has 83 two-wheelers per 1,000 people.

And Vietnam, despite having a 13 per cent lower per capita income, has a penetration of 122

two-wheelers per 1,000. Malaysia and Thailand are at 223 and 264 two-wheelers per 1,000. The


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fact is that with the Indian economy growing close to 8 per cent CAGR in the last three years, there

is enormous headroom for increasing two-wheeler penetration in the country. What this needs are

products at different price points, sales and service set-ups across the length and breadth of the

country, which are backed by attractive financing options to make two wheelers affordable to the

vast majority of the population. Bajaj Auto has all the three levers in place to drive this change and

expand the market. Our view is that motorcycle demand in India will grow at around 15 per cent per

year over the coming years. It will therefore be our endeavor to grow at a pace significantly higher

than the market growth.

Two-wheelers:-

Overall industry sales of two-wheelers increased by 15 per cent from 6.57 million in 2004-05

to 7.57 million in 2005-06. As in the previous years, motorcycles continue to dominate the two-

wheeler market. It grew at 18.8 per cent, from 5.2 million in 2004-05 to 6.2 million in 2005-06.

Consequently, the share of motorcycles in the two-wheeler market further increased from 79 per

cent in 2004-05 to 82 per cent in 2005-06.

Motorcycles:-

While the motorcycle as a whole grew at 18.8 percent in 2005-06, Bajaj Auto's sales of

motorcycles increased 31.9 per cent, which resulted in the company's market share improving from

27.8% in 2004-05 to 30.8% in 2005-06.

Bajaj Autos Growth In Mkt. Share For

Motorcycles:-

Bal- Bajaj Auto Ltd.

YEAR Mkt.

(Nos.)

Mkt.GROWTH

BAL.

(Nos.)

BalsGROWTH

BalS

Mkt. share2002 2861375 40.7% 656018 55.4% 22.9%2003 3757125 31.3% 868138 32.3% 23.1%

2004 4316777 14.9% 1023551 17.9% 23.7%2005 5217996 20.9% 1449710 41.6% 27.8%2006 6200749 18.8% 1912306 31.9% 30.8%


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0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2002 2003 2004 2005 2006

Mkt. GROWTH

BalsGROWTH

Analysis:-

As table shows over the last few years, Bajaj Auto motorcycle sales have consistently grown

faster than the market. As we show that the Bajajs growth is yearly reduce with the reducing the

market year to year. In the year 2002 the Bajajs growth was 55.4% while in the year 2006 it is

31.9% but it is higher than the market growth (i.e. 18.8 %). Year to Year the Bajajs market share is

going higher. In year 2002 the Bajajs market share was 22.9% while due to increase the market

share in the 2006 is 30.8% of the company. It shows that the companys position in the market is

becoming strong year to year.

Three Wheeler sales And Share Of

Bajaj Auto.

(Rs. In Million)

ITEMS YEARS

2003-04 2004-05 2005-06

PASSANGER VEHICLES3 SEATER

INDUSTRY SALES 221831 219151 269209

BAJAJ AUTO SALES 203639 188572 215994

BAL MARKET SHARE 91.80% 86% 80.20%

6 SEATER

INDUSTRY SALES 12245 11958 10694


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BAJAJ AUTO SALES NA NA NA

TOTAL PASSANGER VEHICLES

INDUSTRY SALES 234076 229845 281167

BAJAJ AUTO SALES 203639 188572 215994

BAL MARKET SHARE 87% 82% 76.80%

GOODS CARRIERS

INDUSTRY SALES 99625 128554 138688

BAJAJ AUTO SALES 25543 33481 36060

BAL MARKET SHARE 25.60% 26.00% 26.00%

TOTAL 3-WHEELERS

INDUSTRY SALES 333701 358399 419855

BAJAJ AUTO SALES 229182 222053 252054

BAL MARKET SHARE 68.70% 61.90% 60.00%


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Company OverviewCompany OverviewCompany OverviewCompany Overview

2.1 GENERAL INFORMATION ABOUT THE COMPANY 9

2.2 HISTORY OF THE COMPANY 9

2.3 PLANT LOCATIONS 11

2.4 PRODUCTS OF THE COMPANY 12

2.5 BAJAJ GROUP OF COMPANIES 13

2.6 ORGANIZATION STRUCTURE 142.7 AWARDS &ACHIEVEMENTS 16

2.8 TIME LINE OF PRODUCT RELEASE IN FOUR YEARS 17


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2.2.2.2.1111

General InformationGeneral InformationGeneral InformationGeneral Information About The CompanyAbout The CompanyAbout The CompanyAbout The Company::::----

Name Of The Company :- Bajaj Auto Limited.

Registered office :- Bajaj Auto Limited.Mumbai-Pune Road,Akurdi, Pune-411 035Tele. (020) 2740 6603

2740 6063Fax: - (020) 2740 7380

Establishment Of The Co. :- 29th

Nov., 1945.

Constitution :- The Public Ltd.

Industry :- Automobile Ind.

Production Capacity :- 31,80,000 units per annom(As per 31st Mar. 2006)

2.22.22.22.2

History Of The Company.History Of The Company.History Of The Company.History Of The Company.

Bajaj Auto came in to existence on November 29 th, 1945 as M/s Bechraj Trading Corporation

Pvt. Ltd. It started of by selling imported two and three wheelers in India. In 1959, it obtained license

from the Government of India to the manufacture two and three wheelers and it went public in 1960.

In 1970, it rolled out its 100000th

vehicle. In 1997, it managed to produce and sell 500000 vehicles in

a single year. In 1995, it rolled out its ten millionth vehicles and produced and sold one million

vehicles in a year.

The Bajaj Group came into existence during the turmoil and the heady euphoria of India's

freedom struggle. Jamnalal Bajaj, founder of the Bajaj Group, was a confidante and disciple of

Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication,

resourcefulness and determination to succeed which are characteristic of the Company today, are

often traced back to its birth during those long days of relentless devotion to a common cause.


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Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of

twenty-seven. Putting the Nation before business, he devoted himself to the latter only after India

achieved independence in 1947. But when he did so, he put his heart and soul into it. Within a short

while, he not only consolidated the Group, but also diversified into various manufacturing activities,

elevating the Group to the status it enjoys till this day.

Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajaj since

1968 and is recognized as one of the most outstanding business leaders in India. As dynamic and

ambitious as his illustrious predecessors, he has been recognized for his achievements at various

national and international forums.


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2.32.32.32.3

Plant Locations:Plant Locations:Plant Locations:Plant Locations:----

Bajaj Auto has Plant located at following Places.1. Mumbai-Pune Road,

Akurdi,Pune 411 035. (Maharashta)

2. Bajaj Nagar,Waluj,Aurangabad 431 136. (Maharashta)

3. MIDC, Plot No. A1,Mahalunge Village,Chakan 410 501Dist. Pune (Maharashta)

Distribution Of Products Across Plants

PlantPlantPlantPlant ProductsProductsProductsProducts

AkurdiAkurdiAkurdiAkurdi Geared Scooters, Ungeared Scooters,

CT 100, and Discover.

WalujWalujWalujWaluj Bajaj Kawasaki range of

Motorcycles,AndThree Wheelers.

ChakanChakanChakanChakan Bajaj Motorcycles Pulsar and Discover.

Distribution Of Products Across Plants:-

PlantsPlantsPlantsPlants 03030303----04040404 04040404----05050505 05050505----06060606

AkurdiAkurdiAkurdiAkurdi 7, 20,000 7, 20,000 7, 20,000

WalujWalujWalujWaluj 12, 00,000 12, 60,000 15,00,000

ChakanChakanChakanChakan 6, 00,000 7, 20,000 7, 20,000

TotalTotalTotalTotal 25, 20,000 27, 00,000 31, 80,000


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2.42.42.42.4

Products Of The CompanyProducts Of The CompanyProducts Of The CompanyProducts Of The Company::::----

Scooters:-

Motor Scooter through their range of scooters and find what we are looking for a snag vehicle

for two vehicles for two or a study work hours for a family. Every scooter bears the Bajaj mark of

excellence in design and performance.

BAJAJ WAVEBAJAJ CHETAKBAJAJ SUPAR

Bikes:-

Some like their looks; some go for the speed and power. The truth is their motorcycles haveit all-styles, mileage, speed, performance, comfort and safety.

So, the company makes different types of bikes as per the public requirement.

BAJAJ CT 100

BAJAJ PLATINABAJAJ WIND 125BAJAJ DISCOVERBAJAJ PULSARBAJAJ PULSAR DTS-IBAJAJ CALIBERBAJAJ BOXERBAJAJ AVENGER

Goods Carriers:-

GC 1000

Passenger Carriers:-

RE 25RE 4SRE 4S LPGRE 4S CNGRE DIESELRE DIESEL MEGA.


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2.52.52.52.5

Bajaj Group Of Companies:Bajaj Group Of Companies:Bajaj Group Of Companies:Bajaj Group Of Companies:----

Bajaj auto is the flagship of the Bajaj Group of companies. The Group comprises of 27 companiesand was founded in the year 1926. The companies in the group are:

BAJAJ AUTO LTD.

MUKAND INTERNATIONAL LTD.

MUKAND LTD.

MUKAND ENGINEERS LTD.

BAJAJ ELECTRICALS LTD.

MUKAND GLOBAL FINANCE LTD.

BAJAJ HINDUSTAN LTD.

BACHHRAJ FACTORIES PVT. LTD.

MAHARASHTRA SCOOTERS LTD.

BAJAJ CONSUMER CARE LTD.

BAJAJ AUTO FINANCE LTD.

BAJAJ AUTO HOLDINGS LTD.

HERCULES HOISTS LTD.

JAMNALAL SONS PVT. LTD.

BAJAJ SEVASHRAM PVT LTD.

BACHHRAJ & COMPANY PVT. LTD.

HIND LAMPS LTD.

JEEVAN LTD.

BAJAJ VENTURES LTD.

THE HINDUSTAN HOUSING CO LTD.

BAJAJ INTERNATIONAL PVT LTD.

BARODA INDUSTRIES PVT LTD.

HIND MUSAFIR AGENCY PVT LTD.

STAINLESS INDIA LTD.

BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD.

BOMBAY FORGINGS LTD.

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD.


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2.62.62.62.6

Organization StructureOrganization StructureOrganization StructureOrganization Structure::::----

Board of Directors:-

RAHUL BAJAJ - CHAIRMAN

MADHUR BAJAJ - VICE CHAIRMAN

RAJIV BAJAJ - MANAGING DIRECTOR

SANJIV BAJAJ - EXECUTIVE DIRECTOR

D S MEHTA - WHOLE-TIME DIRECTOR

KANTIKUMAR R PODAR

SHEKHAR BAJAJ

D J BALAJI RAO

J N GODREJ

S H KHAN

SUMAN KIRLOSKAR

NARESH CHANDRA

NANOO PAMNANI

TARUN DAS

(UPTO 9TH APRIL 2006)

MANISH KEJRIWAL

Auditors:-

DALAL & SHAH - CHARTERED ACCOUNTANTS

International Accountants:-

KPMG

Cost Auditor:-

A P RAMAN - COST ACCOUNTANT

Company Secretary:-

J SRIDHAR


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Bankers:-

CENTRAL BANK OF INDIA

STATE BANK OF INDIA

CITIBANK N A

STANDARD CHARTERED BANK

BANK OF AMERICA

ICICI BANK

HDFC BANK

Registrar and transfer agent:-

The company has no external registrar or share transfer agent. All work relating to physical

transfer, transmission, splitting of share certificates, dematerialization and dematerialization

processing, payment of dividend, etc. is done in-house at the registered office of the company. The

company has its own connectivity with NSDL / CDSL for conducting the dematerialization and

dematerialization work in-house.


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2.72.72.72.7

Awards And AchievementsAwards And AchievementsAwards And AchievementsAwards And Achievements::::----

Product Award Year

Mr. Rajiv Bajaj - Man of the year 2005 2005

Mr. Rajiv Bajaj - Automotive Man of the year 2005 2005

Bajaj Discover DTS-I - Indigenous Design of the Year 2005 2005

BAJAJ AUTO Bike Maker of the Year 2004 2004

DTS-I Technology - Auto Tech of the Year 2004 2004

Bajaj Pulsar DTS-I Bike of the Year 2004 2004

Wind 125 Two Wheeler of the Year 2004 2004

Wind 125 Bike of the Year 2004 2004

Bajaj Pulsar 180 DTS-i BBC World Wheels Viewers Choice

Two Wheeler of Year 2003 2003

Bajaj Pulsar 180 DTS-i BBC World Wheels Award for Best

Two Wheeler between Rs 55,000 to Rs 70,000 2003

Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best

Two Wheeler between Rs 45,000 to Rs 55,000 2003

Bajaj Boxer AT KTEC BBC World Wheels Award for Best

Two Wheeler under Rs 30,000 2003

Bajaj Pulsar - Motorcycle Total Customer Satisfaction Study 2003

Bajaj Pulsar - Bike of the year 2003

Bajaj Pulsar Most exciting bike of the year 2002

Bajaj Eliminator - Bike of the year 2002

Bajaj Eliminator - Most exciting bike of the year 2001


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2.82.82.82.8

Time Line Of Product Release In LastTime Line Of Product Release In LastTime Line Of Product Release In LastTime Line Of Product Release In Last FourFourFourFour YearYearYearYear::::----

Year 2003

February - Bajaj Auto has launched its caliber 115 Hoodibabain the executive motorcycle segment.

July - Bajaj wind 125, the world bike, is launched in India.October - Pulsar DTS-I is launched.

1,07,115 motorcycles sold in a month.

Year 2004

January - Bajaj Unveils new brand identity dons new symbol,Logo and new brand line.

May - Bajaj CT 100 Launched.August - New Bajaj Chetak 4 stroke with wonder gear

launched.Sept./Oct. - Bajaj Discovered DTS-I launched.

Year 2005

February - Bajaj wave Launched.June - Bajaj Avanger Launched.December - Bajaj Discover Launched.

Year 2006

Bajaj Platina launchedNew Bajaj Pulsar Red & Black Launched.

Up Coming Model:-

Bajaj Pulsar 220 DTS-FIBajaj Crystal.Bajaj SonicBajaj Blade


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CorporateCorporateCorporateCorporate GovernanceGovernanceGovernanceGovernance

RepoRepoRepoReportrtrtrt

3.1 WHY CORPORATE GOVERNANCE? 19

3.2 BAJAJS PHILOSOPHY ON CORPORATE GOVERNANCE 19

3.3 COMPOSITION OF BOARD MEMBERS 19

3.4 BOARD OF DIRECTORS 20


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3.13.13.13.1

Why CorporateWhy CorporateWhy CorporateWhy Corporate GGGGovernanceovernanceovernanceovernance????

SEBI has introduced the revised clause 49, with came in to force from 1st

January 2006. It is

compulsory as per the sec. 49 as listing argument.

3.23.23.23.2

Bajajs PhiBajajs PhiBajajs PhiBajajs Philosophy On Corporate Governancelosophy On Corporate Governancelosophy On Corporate Governancelosophy On Corporate Governance::::----

Bajaj Auto Limited's ("Bajaj Auto", "BAL" or "the company") commitment to good corporate

governance practices predates the laws and mandates of the Securities and Exchange Board of

India (SEBI) and the stock exchanges through Clause 49 of their listing agreements. Transparency,

fairness, disclosure and accountability have been central to the working of the company, its

management and its board of directors. The standing that Bajaj Auto enjoys in the corporate world

has as much to do with its reputation for integrity and transparency as with its performance.

3.33.33.33.3

Composition of Board MembersComposition of Board MembersComposition of Board MembersComposition of Board Members::::----

As on 31 March 2006, the board of Bajaj Auto consisted of 15 directors, of whom 10 werenon-executive and five were whole-time executives. Eight out of the 10 non-executive directors

were independent. The board has no institutional nominee directors. According to Clause 49, if the

chairman is an executive, at least half of the board should consist non-executive, independent

directors. This provision is more than adequately met at Bajaj Auto. The executive directors are:

Rahul Bajaj, Madhur Bajaj, Rajiv Bajaj, Sanjiv Bajaj and D S Mehta.

According to the statutes, at least two-third of the board should consist of retiring directors.

Of these, a third are required to retire every year and, if eligible, may seek re-appointment by the

shareholders. 10 out of the 15 directors of Bajaj Auto as on 31 March 2006 were retiring directors.

On this occasion, the retiring directors are Naresh Chandra, Nanoo Pamnani and Kantikumar RPodar who, being eligible, have offered their candidature for re-appointment. Their details are given

in the section on 'Shareholders' in this chapter.


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3.43.43.43.4

Board OfBoard OfBoard OfBoard Of ddddirectorsirectorsirectorsirectors::::----

AGM meeting Attend

Name OfName OfName OfName Of categorycategorycategorycategory MeetingMeetingMeetingMeeting

DirectorDirectorDirectorDirector AttendAttendAttendAttend

Rahul Bajaj Chairman, Executive 6 of 6

Madhur Bajaj Vice chairman, Executive 5 of 6

Rajiv Bajaj M.D., Executive 6 of 6

Sanjiv Bajaj Executive Director 6 of 6

D.S.Mehta Whole Time Director 6 of 6

Kanti Kumar Non Executive, Independent 6 of 6

Shekhar Bajaj Non-Executive 6 of 6

D.J. Balaji Rao Non-Executive, Independent 5 of 6

J.N. Godrej Non-Executive, Independent 5 of 6

S.H. Khan Non-Executive, Independent 6 of 6

Suman Kirtosar Non-Executive, Independent 4 of 6

Naresh Chandra Non-Executive, Independent 6 of 6

Namoo Palmnani Non-Executive, Independent 2 of 6

Tarun Das Non-Executive, Independent 4 of 6

Manish Kehriwal Non-Executive, 5 of 6


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Out Side Directorship

Name OfName OfName OfName Of In ListedIn ListedIn ListedIn Listed In UnlistedIn UnlistedIn UnlistedIn Unlisted AsAsAsAs

DirectorDirectorDirectorDirector CompaniesCompaniesCompaniesCompanies CompaniesCompaniesCompaniesCompanies chairmanchairmanchairmanchairman

Rahul Bajaj 3 2 0Madhur Bajaj 1 5 6

Rajiv Bajaj 1 1 0

Sanjiv Bajaj 4 3 2

D.S. Mehta 3 3 8

Kantikumar Podar 2 2 0

Shekhar Bajaj 5 7 1

D.J. Balaji Rao 4 2 8

J.N. Godrej 3 9 2

S.H.Khan 0 2 5Suman Kirlosar 5 1 0

Naresh Chandra 2 2 7

Nanoo Pumnani 0 0 0

Tarun Das 0 4 1

Manish Kejriwal 0 0 1


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General Share HolderGeneral Share HolderGeneral Share HolderGeneral Share HolderInformationInformationInformationInformation

4.1 ANNUAL GENERAL MEETING 23

4.2 FINANCIAL CALENDAR 23

4.3 DATE OF BOOK CLOSER 24

4.4 LISTING OF STOCK EXCHANGES 24

4.5 STOCK CODE 25

4.6 REGISTRAR AND TRANSFER AGENT 25

4.7 PAYMENT OF DIVIDEND 25


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4.14.14.14.1

Annual General MeetingAnnual General MeetingAnnual General MeetingAnnual General Meeting

03030303----04040404 Date :- 31st july,2004

Time :- 11.30 a.m.

Venue :- Registered Office at Mumbai-Pune

Road, Akurdi, Pune 411 035.

04040404----05050505 Date :- 19th july,2005

Time :- 11.30 a.m.



05050505----06060606 Date :- 15th july,2006

Time :- 11.30 a.m.



4.24.24.24.2

Financial CalendarFinancial CalendarFinancial CalendarFinancial Calendar ::::----

03-04

Audited annual results for year ending 31 March 2004 - Mid-MayMailing of annual reports - Second half of JuneAnnual general meeting - Second half of JulyUnaudited first quarter financial results - Second half of JulyUnaudited second quarter financial results - Second half of OctoberUnaudited third quarter financial results - Second half of January

04-05Audited annual results for year ending 31 March 2005 - Mid-MayMailing of annual reports - Second half of JuneAnnual general meeting Mid/Second half of JulyUnaudited first quarter financial results - Mid/Second half of JulyUnaudited second quarter financial results -Mid/Second half of OctoberUnaudited third quarter financial results Mid/Second half of January


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05-06

Audited annual results for year ending 31 March 2006 - Mid-MayMailing of annual reports Mid/Second half of JuneAnnual general meeting Mid/Second half of JulyUnaudited first quarter financial results- Mid/Second half of July

Unaudited second quarter financial results- Mid/Second half of OctoberUnaudited third quarter financial results Mid/Second half of January

4.34.34.34.3

Date OF BookDate OF BookDate OF BookDate OF Book ClosuresClosuresClosuresClosures ::::----

03-04

The register of members and share transfer books of the company will remain closed from

Saturday, 17 July 2004 to Saturday, 31 July 2004, both days inclusive.04-05


Friday, 1 July 2005 to Saturday, 16 July 2005, both days inclusive

05-06


Friday, 1 July 2006 to Saturday, 15 July 2006, both days inclusive.

4.44.44.44.4Listing Of Stock ExchangesListing Of Stock ExchangesListing Of Stock ExchangesListing Of Stock Exchanges::::----

1. Bombay Stock Exchange Ltd (BSE)

1st

Floor Phiroz Jeejeebhoy Towers,

Dalal Street, Mumbai 400 001.

2. National Stock Exchange Of India Ltd. (NSE)

Exchange Plaza, Bandra-Kurla complex,

Bandra (E), Mumbai 400 051.


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4.54.54.54.5

Stock Code :Stock Code :Stock Code :Stock Code :----

BSE, Mumbai - 500490

NSE, - Bajaj Auto

Reuters - BJAT BO

Bloomberg - BJA IN

ISIN - INE 118 A 01012

4.64.64.64.6

Registrar And Transfer AgentRegistrar And Transfer AgentRegistrar And Transfer AgentRegistrar And Transfer Agent::::----

The Company has not external registrar of shares transfer agent. All work relating to physical

transfer, transmission, splitting of share certificates, dematerialization processing payment ofdividend etc is done in house at the registered office of the company. The company has its own

connectivity with NSDL/CDSL for conducting the dematerialization work in houses.

4.74.74.74.7

PaymentPaymentPaymentPayment oooof Dividend:f Dividend:f Dividend:f Dividend:----

Dividend will be paid by account payee / not-negotiable instruments or through the electronic

clearing service (ECS) as notified by the SEBI through the stock exchanges. In view of the

significant advantages and the convenience, the company will continue to pay dividend through

ECS in all major cities to cover maximum number of shareholders, as per applicable guidelines.


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27


Analysis Of DirectorsAnalysis Of DirectorsAnalysis Of DirectorsAnalysis Of DirectorsReportsReportsReportsReports

5.1 RESULTS OVER THE PAST FOUR YEAR 27

5.2 DIVIDEND 27

5.3 NEW PROJECTS 28

5.4 JOIN VENTURES 28

5.5 DIRECTORS 29

5.6 DIRECTORS RESPONSIBILITY STATEMENT 29


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5.15.15.15.1

ResultsResultsResultsResults Over the Past Four Years:Over the Past Four Years:Over the Past Four Years:Over the Past Four Years:----

(Rs. In Million)(Rs. In Million)(Rs. In Million)(Rs. In Million)

PARTICULAR 02-03 03-04 04-05 05-06

Net Sales And Other Income 44857 52703 63228 81064

GP before Depreciation ant Int. 9609 11412 13215 17946

VRS Compensation - - 490 226

Interest 11 9 7 7

Depreciation 1712 1799 1854 1910

Profit Before Tax 7886 9604 - 15807

(-) Provision For Taxation 2502 2289 - 4791Profit After Tax 5384 7315 - 11016

Tax credits pertaining To earlier Years - - - 225

Disposable Surplus 5346 7384 7292 11233

Proposed Dividend(incl. of Div. Tax) 1598 2854 2884 4615

Bal. carried to G.R. 3748 4530 4408 6618

EPS 5284 7298 75.6 111.0

5.25.25.25.2

Dividend:Dividend:Dividend:Dividend:----

The payment of a dividend of Rs.40 per share (400 per cent) for the year ended 31 March

2006.The amount of dividend and the tax there on aggregates to Rs.4,615 million. Dividend paid for

the year ended 31 March 2005was Rs.25 per share (250 per cent).The amount of dividend and the

tax thereon aggregated toRs.2,884 million.


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5.35.35.35.3

New Projects:New Projects:New Projects:New Projects:----

Increasing demand for the company's products, the company is planning to set up a

manufacturing base in north India. Accordingly, the company has chosen Pantnagar in the State of

Uttaranchal to manufacture up to one million 2 &3 wheelers and parts thereof per annum. The

company has reserved around 225 acres of land at the Pantnagar Industrial Area for the company's

plant and the auto cluster. It is proposed to use 65 acres of land for the company's plant and the

balance for the auto cluster. The company is setting up a green field project at Chakan to

manufacture a new range of three and four wheelers. In order to implement the project, the

company is in the process of acquiring upto250 acres of land at Chakan.

5.45.45.45.4

Join Ventures:Join Ventures:Join Ventures:Join Ventures:----

Bajaj Allianz General Insurance Company Ltd. (BAGICL), the general insurance

subsidiary of Bajaj Auto in joint venture with Allianz AG, Germany, recorded a gross written

premium of Rs.12,846 million during the financial year 2005-06, registering an increase of 50 per

cent over the previous year.Net premium income grew by 46 per cent to Rs.6, 987 million, while

profit after tax increased to Rs.516 million from Rs.471 million in the previous year. The company

continued its No.2 position in the private sector in the general insurance area.

Bajaj Allianz Life Insurance Company Ltd. (BALICL),the life insurance subsidiary of Bajaj

Auto in joint venture with Allianz AG, Germany, was in the first position among the private insurers

for the year 2005-06,with a first year premium underwritten of Rs.27,156 million. The company

recorded a gross premium of Rs.31, 336 million during the financial year 2005-06.The company

has its presence in around 569 locations with a total staff strength of 8,387 employees as on 31

March 2006.

As regards Maharashtra Scooters Ltd. (MSL), a company jointly promoted by Bajaj Autoand Western Maharashtra Development Corporation Ltd. villages in this manner. valuing the share

price of MSL at Rs.151.63 per share as the rate at which 30,85,712 equity shares of MSL held by

WMDC are to be sold to Bajaj Auto Ltd.


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5.55.55.55.5

Directors:Directors:Directors:Directors:----

In order to enable the company to have a larger and stronger board to meet the new

challenges in the business environment, the board of directors had increased the maximum

permissible limit of directors from 15 to 18.The company continued with its Rural Tarun Das

resigned from the board with effect from 9 April 2006. Naresh Chandra, Nanoo Pamnani and

Kantikumar R Podar retire from the board.

5.65.65.65.6

Directors Responsibility Statement:Directors Responsibility Statement:Directors Responsibility Statement:Directors Responsibility Statement:----

As required by sub-section (2AA)of section 217 of the Companies Act,1956, directors state:

That in the preparation of annual accounts, the applicable accounting standards have beenfollowed along with proper explanation relating to material departures. That the directors have

selected such accounting policies and applied them consistently and made judgments. That the

annual accounts have been prepared on a going concern basis.


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6.16.16.16.1

Share Holding PatternShare Holding PatternShare Holding PatternShare Holding Pattern::::----

Share holding pattern shows no. of shares subscribed by different parties which means the

pattern in which share holding is distributed among the public.

Share HoldingShare HoldingShare HoldingShare Holding 2020202003030303----04040404 2004200420042004----05050505 2005200520052005----06060606

PatternPatternPatternPattern Sh. Held % Sh. Held % Sh. Held %

Promoters and Persons 29530432 29.1 30148017 29.8 30144292 29.8

Acting In Concept

Friend and Associated 17297994 17.1 17149606 16.95 16996549 16.8

Of Promoters

GDRS 4658411 4.6 3235879 3.2 2320561 2.29

Foreign Institutional 17351097 17.1 16927506 16.7 19648242 19.4

Investors

Public Financial Int. 5627842 5.5 7405160 7.3 5442659 5.38

Mutual Funds 1273210 1.3 1658413 1.6 2360340 2.33

Nationalized and Other 129151 0.1 232237 0.2 190844 0.19

Banks

NRIs and OCBs 576673 0.6 517743 0.5 622989 0.62

Others 24738700 24.5 23908949 23.6 23457034 23.2

Total 101183510 100 101183510 100 101183510 100


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SHARE HOLDING PATTERN (03-04)

29.1

17.1

4.617.62

5.6

24.45

0.1

1.3

0.57

Promoters and Persons Acting In

ConceptFriend and Associated Of Promoters

GDRs

Foreign Institutional Investors

Public Financial Int.

Mutual Funds

Nationalized and Other Banks

NRIs and OCBs

Others


29.8

16.953.2

16.7

23.6

1.6

0.20.5

7.3

Promoters and PersonsActing In ConceptFriend and Associated OfPromotersGDRs



Mutual Funds


NRIs and OCBs

Others


29.8

16.82.3

19.4

23.2

2.3

0.2

0.6

5.3

Promoters and Persons Acting In

Concept

Friend and Associated Of Promoters

GDRs



Mutual Funds


NRIs and OCBs

Others


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34

Analysis of Share Holding Pattern:-

From the above table and graph we can see that the company has issued same no. of

shares in the three years i.e. 101183510.

In the year 03-04 the foreign institute promoters are 17351097. It is slightly decrease in the

year 14-05 i.e. 16927506 while in the year 05-06 it is decreased 16927506 to 19648242. It

means the foreign investors interest to invest in the Bajaj Auto is increased. It means the

financial position of the company is become strong.

Promoter and personal acting in concert has invested maximum proportion of shares in the

company. They have invested 29.1 % of the total shares in year 03-04. It is increase in

year 04-05-29.1 to 29.8. % and it is same in the year 05-06 i.e. 29.8.

Public financial institutions have invested 5.6 % of the total shares in year 03-04. It is

increased in the year 04-05- 5.6% to 7.3 while it is decreased in the year 05-06 7.3% to

5.3%.

In the year 03-04 NRIs and OCBs has invested 24.45% of total share in the year during the

year 03-04. It is decreased in 04-05 24.45 to 23.6% while in the year 05-06 it is slightly

decrease 23.6% to 23.2.


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6.26.26.26.2

Financial Highlights of the Co. for LastFinancial Highlights of the Co. for LastFinancial Highlights of the Co. for LastFinancial Highlights of the Co. for Last FiveFiveFiveFive

Years:Years:Years:Years:----

Sales Highlights:-

Years 01-02 02-03 03-04 04-05 05-06

Sales (Unit) 1358980 1445773 1518131 1824699 2181230

Inc. Or Dec.

(%)

100 106.39 111.71 134.27 167.86

13589801445773 1518131

1824699

2181230

0

500000

1000000

1500000

2000000

2500000

sales

2001-02 2002-03 2003-04 2004-05 2005-06

years

sales

sales

Analysis:-

From the above table and Graph we can see that the sales of the company is increasing

constantly year to year. In the year 2001-02 the sale of the company is 1358980. In the next year2002-03 it is increase 1258980 to 1445773. in the year 2003-04 and 2004-05 it is 1518131 and

1824699 respectively while in the year 2005-06 it is the highest i.e. 2181230.


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Profit before Tax:-

Years 02-03 03-04 04-05 05-06

GPBID (Rs. In million) 9609 11412 13215 17946(-)Compensation 490 226

(-)Depreciation 1712 1199 1854 1910

(-)Interest 11 9 7 7

PBT 7886 9604 10864 15807

Inc. Or Dec. (%) 100 121.79 113.12 145.5

78869604

10864

15807

02000

4000

6000

8000

10000

12000

14000

16000

PBT

2002-03 2003-04 2004-05 2005-06

YEARS

PBT

Analysis:-

From the above table and graph the profit before tax is increase year to year. In the

year 02-03 profit before tax is 7886. In the year 20-04 the PBT increase 7886 to 9604. In the

year 04-05 compensation and depreciation is relatively high. It means it is increased 9604 to

10864 but decreasing rate. In the year 05-06 the gross profit before interest and

depreciation is highest in four year i.e. 17946 so PBT is highest i.e. 15807 in increasing rate.


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5384

7315 7668

11016

0

2000

4000

6000

800010000

12000

PBT

2002-03 2003-04 2004-05 2005-06

YEARS

PAT

Profit After Tax:-

Years 02-03 03-04 04-05 05-06

Pbt (Rs. In million) 7886 9604 10864 15807(-)Tax 2502 2289 3196 4791

Pat 5384 7315 7668 11016

Inc. Or Dec. (%) 100 135.87 104.83 143.66

Analysis:-

The above table and graph shows companys four year profit after tax. The profit after

tax can be calculated on PBT after deducting tax. In the year 02-03 the companys profit

after tax is less. In the year 03-04 and 04-05 the PAT is 7315 and 7668 is respectively. In

the year 05-06 the PAT of the company is very much higher than the three year (i.e.11016).

So we can say that the company gets the maximum profit in the current year.


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6205

8633 8951 9304

13690

0

2000

4000

6000

8000

10000

12000

14000

DIVIDEND

2001-02 2002-03 2003-04 2004-05 2005-06

YEARS

DIVIDEND PAY OUT

Dividend Pay Out:-

Years 01-02 02-03 03-04 04-05 05-06

Dividend(Rs. In million)

6205 8633 8951 9304 13690

Pay Out Ratio 140 140 250 250 400

Inc. Or Dec.

(%)

100 139.13 103.68 103.94 147.14

Analysis:-

The above table and graph shows the dividend payment of the company. In the year

01-02 the company gives 6205 million dividends to the preference share holders. In the year

02-03,03-04,04-05 it is 8633, 8951 and 9304 respectively. In The current year the company

gives maximum preference dividend to the preference share holders.


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BOOK VALUE & MKT. PRICE

0

500

1000

1500

2000

2500

3000

2001-02 2002-03 2003-04 2004-05 2005-06

YEAR

VALUE

BOOK VALUE

MKT. PRICE

Book Value and Market Price of share:-

(In Rs.)

Years 01-02 02-03 03-04 04-05 05-06Book Value 283 320 365 409 471

Mkt. Price 469 480 912 1081 2747

Analysis:-

The above table and graph shows Book Value & Market Value of share of the company. In

the year 2005-06 book value and market price of the share is very much higher than remain

years.


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51 53

73 76

0

10

20

30

40

50

60

70

80

EPS

2002-03 2003-04 2004-05 2005-06

YEARS

EPS (Rs. In million)

Earning per share:-

Years 01-02 02-03 03-04 04-05 05-06

EPS(Rs. In million)

51 53 73 76 111

Inc. or dec. (%) 100 103.92 137.73 104.12 146.05

Analysis:-

The above table and graph shows the earning of the company towards the shares. In 2002-

03 EPS is 51. In the next year it is slightly increase. In the past two years 2004-05 & 2005-

06 the EPS goes high i.e. 73 & 76 respectively.


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SectionSectionSectionSection 7777....

Ratio AnalysisRatio AnalysisRatio AnalysisRatio Analysis

7.1 INTRODUCTION OF RATIO ANALYSIS 41

7.2 IMPORTANCE OF RATIO 41

7.3 ADVANTAGES OF RATIO 43

7.4 LIMITATION OF RATIO 44

7.5 CLASSIFICATION OF RATIO 46

7.6 CALCULATION AND ANALYSIS OF RATIO 47


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7.17.17.17.1

Introduction:Introduction:Introduction:Introduction:----

A ratio is number expressed in terms of another. A ratio is customarily expressed in three

different ways. It may be expressed as proportion between two figures. It is also defined as thesystematic use of ratio to interpret the financial statements so the strengths and weakness of a firm

as well as its historical performance and current financial condition can be determined. In other

word we can say that ratio is a form which is establishes the relationship between the two variables.

It can be expressed as a simple fraction.

The use of ratio has become increasing popular during last few years only. Ordinary the

bankers used the current ratio is judge the capacity of the borrowing business enterprises to repay

the loan and make regular interest payments.

7.27.27.27.2

Importance of RatioImportance of RatioImportance of RatioImportance of Ratio::::----

Liquidity Position:-

With the help of ratio analysis conclusions can be drawn regarding the liquidity position of

a firms. The liquidity position of a firm would be satisfactory if it is able to meet its current

obligations when they become due. A firm can be said to have the ability to meet its short

term liabilities if it has sufficient liquid funds to pay the interest on its short manufacturing

debt usually with in a year as to repay the principal.

Long-tem solvency:-

Ratio analysis is equaled useful for assessing the long term financial viability of a firm.

This aspect of the financial position of a borrower is concern to long term creditors, security

analysis and the present and potential owners of a business. The long term solvency is

measured by the leverage capital and profitability ratio analysis the strengths and

weaknesses of firm in this respect.

Operating Efficiency:-


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Yet another dimension of usefulness of the ratio analysis, relevant from the view point

of management is that it throw light on the degree of efficiency in the management and

utilization of its assets. The various activity ratios measure this kind of operational efficiency.

Overall Profitability:-

Unlike the out side parties which are interested in one aspect of the financial position

of a firm, the management is constantly concerned about the over all profitability of

enterprise. This is, they are concerned about the ability of a firm to meet it short term as well

as long term obligation to its creditors to ensure a reasonable return to its owners and secure

optimum utilization of the assets of the firm.

Inter-firm Comparison:-

Ratio analysis not only throws light on the financial position of a firm but also serves

as a stepping stone to remedial measures. This is made possible due to inter-firm

comparison with industry averages. A single figure of a particular ratio is meaningless unless

it is related to some standards more. One of the popular techniques is to compare with the

ratios as a firm with the industry average. It should be reasonably expected that the

performance of a firm should be in broad uniformity with that of the industry to which it

belongs.

Trend Analysis:-

Finally, ratio analysis enables a firm to take time dimension into account. This made

possible by the use of trend analysis.


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7.37.37.37.3

Advantages of Ratio:Advantages of Ratio:Advantages of Ratio:Advantages of Ratio:----

Profitability:-

Useful information about the trend of profitability is available from profitability ratios. The gross

profit ratio, net profit ratio and ratio of return on investment gives a good idea about overall

profitability of business on the business. The management gets an idea about the overall efficiency

or manager or bank as well as other creditors draw useful conclusions about repaying capacity of

the borrower.

Liquidity:-

The turnover ratio are excellent guides to measure the efficiency of mgr, i.e. the stock

turnover will indicate how efficiently the sale is being made, the debtors turnover will indicate the

efficiency of collection department & Assets turnover shows the efficiency with which the assets

are used in business. All such ratios related to sales present a good picture of success or

otherwise of the business.

Inter-firm Comparison:-

The absolute ratios of a firm are not of much use, unless they are compared with similarratios of other firms belonging to same industry. This is inter-firm comparison, which shows the

strength & weakness of the firm as compared to other firms & will indicate corrective measures.

Indicate Trend:-

The ratios of the last three to five years will indicate the trend in the respective fields, for

i.e. the current ration of the firm is lower than the ratios of last five years shows an improving

trend, it is an encouraging trend. Reserve may be also being true. A particular ratio of a

company for one year may compare favorably with industry average but, if its trend shows

deteriorating position; it is not desirable only ratio analysis only provide this report.

Useful For Budgeting Control :-

Regular budgetary reports are prepared in a business where the system of budgetary

control is in use. It will give a fairly good idea about various aspects of financial position.


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Useful For Decision Making:-

Ratio guides the mgt. in making some of the decisions. Suppose the liquidity ratios whose

an unsatisfactorily position, the mgt. may decide to get additional liquid funds. Even for capitalexpenditure decisions, the ratio of return on investment will guide the mgt.

7.47.47.47.4

Limitation of Ratio:Limitation of Ratio:Limitation of Ratio:Limitation of Ratio:----

Single Years Ratio Has a Limited Utility:-

The utility of ratios computed from the financial statement of one year only is obviouslylimited. They must be compared with the past results of the company as also with the results of

other business firms in the same industry.

Other Firm Must Be Considered:-

While the company ratio of different firms, it must be remembered that different firms

allow different accountancy plants & policies for example, some may use a straight line method

of depreciation, while others may use a diminishing balance method. Hence, great care has to

be exercised before any conclusions are drawn from such comparison.

Limited Utility Of Historical Ratio:-

While comparing ratios of several years, it should be remembered that charges in price

level may vender such comparison useless.

Use Of Ratio Misleading:-

One ratio used without reference to other ratio may be misleading. If some conclusions

are to be drawn, then the combined effect of a few related ratios must be considered.


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Lake of Standard Ratio:-

There is practically no standard ratio against which the actual performance can be

compared. The satisfactory level of various ratios may differ from one industry to another only

because circumstances differ from industry to industry & even firm to firm.

Inaccurate Base:-

The accounting ratio can never be more correct than the information from which they are

compared. If the accounting data is not accurate, the accounting ratios based on these figures

would give misleading results.

Investigation Necessary:-

It must be remembered that accounting ratios are only a preliminary step in investigation.

They suggest areas were investigation or inquiry is necessary. Hence before taking any action

on the basis of accounting ratios, a rigorous investigation must be mainly.


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7.57.57.57.5

Classification of Ratios:Classification of Ratios:Classification of Ratios:Classification of Ratios:----

(A) Profitability Ratio:-

This Ratio indicates the profitability or other wise for a company. This category include following

Ratio,

1) Gross Profit Ratio

2) Net Profit Ratio

3) Operating Ratio

4) Expense Ratio

5) Return on Share holders Fund

6) Debt Service Coverage Ratio

(C) Liquidity Ratio:-

This ratio indicates whether short term assets are enough to meet short term application. This

category include following ratio.

1) Current Ratio2) Liquid Ratio3) Acid test Ratio

(D) Leverage Ratio:-

Leverage ratio indicate the total capital of the company and its division into own funds

and borrowed funds. This category include following Ratio.

1) Proprietary Ratio

2) Debt Equity Ratio

3) Capital Gearing Ratio

4) Fixed Capital to Fixed Asset Ratio

(E) Activity Ratio:-

This Ratio indicates the efficiency of investment in the organization. This category

include following Ratio.

1) Creditors Turnover Ratio

2) Debtors Turnover Ratio

3) Fixed Asset Turnover Ratio

4) Total Asset Turnover Ratio


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7.67.67.67.6

CalculationCalculationCalculationCalculation aaaand Interpretationnd Interpretationnd Interpretationnd Interpretation oooof Ratio:f Ratio:f Ratio:f Ratio:----

(A)(A)(A)(A) ProfitabilityProfitabilityProfitabilityProfitability RRRRatio:atio:atio:atio:----

(1)(1)(1)(1) GGGGrossrossrossross PPPProfit Ratiorofit Ratiorofit Ratiorofit Ratio::::----

Formula: - Gross Profit x 100Sales

Year 2003-04 2004-05 2005-06

G.P. ( In million) 19762.09 10742.4 14129.7

Sales ( In million) 47551.4 57363.6 74693.8

Ratio 20.53 18.73 18.92

20.53

18.7318.92

17.50

18.00

18.50

19.00

19.50

20.00

20.50

21.00

RATIO

2003-04 2004-05 2005-06

YEAR

GP RATIO

AnalysisAnalysisAnalysisAnalysis:::: ----

Here, which years ratio is higher that year is more profitable for the company. So

here, the ratio of 2003 04 is higher so we can say that this year is more profitable for the

company than the other year. Here we see after that year the next year the ratio is low and

its higher in the next year 2005 -06 so we can conduct that the firm is in good condition.


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49

Working NoteWorking NoteWorking NoteWorking Note::::----

Cost of Goods Sold ( C.O.G.S.):-

Items 2005-06 2004-05 2004-03

Raw materials &ComponentsconsumedAddFinished Goods purchaseExcise duty on increase instock of finished goodsStores & tools consumedPower, Fuel, & Water

RoyaltyRepairsEmployees EmolumentsRentRates & TaxesInsuranceAuditors RemunerationDirectors Fees & Traveling Exp.Managing Directors RemunerationWhole Time Directors RemunerationCommotion to non Executives

DirectorsMiscellaneous ExpensesPacking forwarding etc.Donations

51313.8

2410.1

12.2742.3590.9

526.2772.32741.3

31.918.825.9

5.41.8

18.063.8

1.4931.7296.2

60.1

39155.7

1616.8

34.4629.7547.9

324.95832409.6

27.013.126.9

4.52.07.26.6

1.5855.1324.9

50.4

30881.4

1043.3

17.3588.0625.1

267.2434.922405.36

27.6617.3535.244.841.08

7.25.04

1.24761.15615.05

51.18

Cost of Goods Sold ( C.G.S ) 60564.1 46621.2 37789.61

Gross Profit:-

Items 2005-06 2004-05 2003-04

Net SalesLess

C.O.G.S74693.8

60564.1

57363.6

46621.2

47551.7

37789.61

Gross Profit 14129.7 10742.4 9762.09


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15.38

13.37

14.75

12

12.5

1313.5

14

14.5

15

15.5

RATIO

2003-04 2004-05 2005-06

YEARS

NP RATIO

(2(2(2(2)))) NNNNetetetet PPPProfitrofitrofitrofit RRRRatioatioatioatio::::----

Formula: - N.P.A.I.T. x 100Sales

Year 2003-04 2004-05 2005-06

N.P. ( In million) 7315.1 7668.1 11016.3

Sales ( In million) 47551.4 57363.6 74693.8

Ratio 15.38 13.37 14.75

Analysis:Analysis:Analysis:Analysis:----

This ratio indicates, higher the ratio, the better will be the profitability. We show above

that the third years 2005 06 is higher so we can say that the year is more profitable. We

can see that the ratio of 2004 05 is lower than the ratio of 2005 06. So we can say that

2005 06 is more profitable than previous year.


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51

84.64

86.86

85.18

83.5

84

84.5

85

85.5

86

86.5

87

RATIO

2003-04 2004-05 2005-06

YEARS

OPERATING RATIO

(3)(3)(3)(3) OOOOperatingperatingperatingperating RRRRatioatioatioatio::::----

Formula: - C.O.G.S + Operating Exp. x 100

Sales

Year 2003-04 2004-05 2005-06

C.O.G.S. ( In million) 33422.3 42288.4 55365.5

Op. Exp. ( In million) 6824.8 7535.0 8257.1

Sales ( In million) 47551.4 57363.6 74693.8

Ratio 84.64 86.86 85.18


Here, the year is profitable which years ratio is lower. So here we can see that the

ratio of 2003 04 year is lowering than the other two years so, the year 2003 04 more

profitable for the company. After that year the ratio increase in next year and then decrease

in next year so we can say that the company will maintain its condition good.

WWWWorkingorkingorkingorking NNNNoteoteoteote ::::----


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Operating Expenses = Administrative Expenses

+ Selling & Distribution Expenses

+ Financial Expenses

Administrative Exp.:-

Items 2005-06 2004-05 2003-04

RepairsAddRentEmployees Emoluments

Rate and taxesAuditors RemunerationDirectors fees & TravelingexpensesManaging DirectorsremunerationWhole time DirectorsremunerationCommission to Non-Executive DirectorsMiscellaneous expenses

772.8

2741.331.9

18.85.4

1.8

18.0

63.8

1.4931.7

583.0

2490.627.0

13.14.5

2.0

7.2

6.6

1.5990.9

434.9

2405.927.7

17.44.8

1.1

7.2

5.0

1.2761.2

Administrative Expenses 4586.9 4126.4 3666.4

Financial Expenses:-

Items 2005-06 2004-05 2003-04

InsuranceAdd

Interest

25.9

3.4

26.9

6.7

35.3

9.3

Financial Expenses 29.3 33.6 44.6


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53

Selling And Distribution Expences.:-

Items 2005-06 2004-05 2003-04

Sales tax / VAT expenses

AddPacking, forwarding, etc.AdvertisementVehicle services chargesand other expensesCommission & DiscountIncentives & Salespromotion

261.8

891.61069.8

1051.768.6

297.4

--

786.81438.7

936.959.3

153.3

--

615.11293.2

748.7129.3

327.3

Selling & Distribution Exp. 3640.9 3375.0 3113.8

Operating Expenses:-

Items 2005-06 2004-05 2003-04

Administrative Expenses+ Selling & Distribution Exp.+ Financial Expenses

4586.93640.9

29.3

4126.43375.0

33.6

3666.43113.4

44.6Operating Expenses 8257.1 7535.0 6824.8


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54

26.03 26.29

33.14

0

5

10

15

20

25

30

35

RATIO

2003-04 2004-05 2005-06

YEARS

RETURN ON CAPITAL EMPLOYED RATIO

((((4444)))) Return On Capital Employed RatioReturn On Capital Employed RatioReturn On Capital Employed RatioReturn On Capital Employed Ratio::::----

Formula: - Profit Before Int. and Tax x 100

Capital Employed

Year 2003-04 2004-05 2005-06

EBIT ( In million) 9613.5 10871.1 15810.8

C.E. ( In million) 36936.2 41343.5 47707.5

Ratio 26.03 26.29 33.14


If this ratio is higher than previous it is good for company means company gets return

on their investments. Here the current years ratio is higher than the ratio of last two years.

So the company is in better position in compare of the last two year.

WorkingWorkingWorkingWorking NNNNoteoteoteote::::----


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55

Capital Employed:-

Items 2005-06 2004-05 2003-04

Share CapitalAddReserve & SurplusSecured loan

1011.8

46695.50.2

1011.8

40331.7--

1011.8

35924.4--

Capital Employed 47707.5 41343.5 36936.2

Earning Before Interest & Tax:-

Items 2005-06 2004-05 2003-04

Net ProfitAddInterestTax

11016.3

3.44791.1

7668.1

6.73196.3

7315.1

9.32289.1

E.B.I.T 15810.8 10871.1 9613.5


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56

19.8 18.55

23.09

0

5

10

15

20

25

RATIO

2003-04 2004-05 2005-06

YEARS

RETURN ON SHARE HOLDER RATIO

((((5555)))) Return On Share Holders FundsReturn On Share Holders FundsReturn On Share Holders FundsReturn On Share Holders Funds::::----

Formula: - N.P.A.T. x 100Share Holder Funds

Year 2003-04 2004-05 2005-06

N.P.A.T. ( In million) 7315.1 7668.1 11016.3

S.H.F. ( In million) 36936.2 41343.5 47707.5

Ratio 19.80 18.55 23.09

Share Holders Funds:-

Items 2005-06 2004-05 2003-04

Share CapitalAddReserve & Surplus

1011.8

46695.5

1011.8

40331.7

1011.8

35924.4

Share holder fund 47707.3 41343.5 36936.2


This ratio is for share holders and they want maximum return on investment, which

they invest in company. So, here we can say that higher the ratio, higher the gain of share

holder. Here the current ratio is high in compare of previous two years. So 2005 06 is

more favorable for the company.


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57

0.88

0.93

0.81

0.740.760.780.8

0.820.840.860.880.9

0.920.94

RATIO

2003-04 2004-05 2005-06

YEARS

CURRENT RATIO

(B)(B)(B)(B) LIQUIDITY RATIO:LIQUIDITY RATIO:LIQUIDITY RATIO:LIQUIDITY RATIO:----

(1)(1)(1)(1) Current RatioCurrent RatioCurrent RatioCurrent Ratio::::----

Formula: - CURRENT ASSETSCURRENT LIABILITY

Year 2003-04 2004-05 2005-06

C.A. ( In million) 20530.4 25897.4 28560.7

C.L. ( In million) 23260.6 27939.7 35447.5

Ratio 0.88 : 1 0.93 : 1 0.81 : 1

Analysis:Analysis:Analysis:Analysis:----If this ratio is between 1.33 : 1 to 2 : 1 it is show a very good position of the company

and if this ratio is less than 1 its show that company in a bad position. Here, all three years

ratio are less than 1 so we can say that the company in a bad liquidity position.


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58

Working Note:Working Note:Working Note:Working Note:----

Current Asset:-

Items 2005-06 2004-05 2003-04

InvestorsAddSundry debtorsCash & bank balanceOther current assetLoans & Advance

2729.3

3015.5820.9721.3

21273.7

2241.7

1763.51086.5685.3

20120.1

2025.6

1339.5793.7454.8

15916.8

Current Asset 28560.7 25897.4 20530.4

Current Liability:-

Items 2005-06 2004-05 2003-04

LiabilityAddProvisions

12288.7

23158.9

7850.7

20089.0

6725.9

23260.6

Current Liability 35447.6 27939.7 23260.6


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59

0.8

0.85

0.73

0.660.68

0.70.72

0.740.760.78

0.80.820.840.86

RATIO

2003-04 2004-05 2005-06

YEARS

LIQUID RATIO

((((2222)))) Liquid RatioLiquid RatioLiquid RatioLiquid Ratio::::----

Formula: - LIQUID ASSETS

LIQUID LIABILITY

Year 2003-04 2004-05 2005-06

L.A. ( In million) 18504.8 23655.4 25831.4

L.L. ( In million) 23260.6 27939.7 35447.5

Ratio 0.8 : 1 0.85 : 1 0.73 : 1


If this ratio is 1:1 than it is good for the company. But if this Ratio is very law like 0.2:1

it means that the company in risky position and if this ratio is very high like 4:1 it means

there is a problem of over investment. Here, all three years ratio are near with the 1:1 so we

can say that the company is far away from the risky position.


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60


Liquid Assets:-

Items 2005-06 2004-05 2003-04

Current AssetsLessStock ( Inventors )

28560.7

2729.3

25897.4

2241.7

20530.4

2025.6

Liquid Asset 25831.4 23655.7 18504.8

Liquid Liability:-

Items 2005-06 2004-05 2003-04

Current LiabilityLessBank over draft

35447.6

--

27939.7

--

23260.6

--

Liquid Liability 35447.6 27939.7 23260.6


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61

0.03

0.04

0.02

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

RATIO

2003-04 2004-05 2005-06

YEARS

ACID TEST RATIO

((((3333)))) Acid Test RatioAcid Test RatioAcid Test RatioAcid Test Ratio::::----

Formula: - QUICK ASSETSLIQUID LIABILITY

Year 2003-04 2004-05 2005-06

Q.A. ( In million) 793.7 1086.9 820.9

L.L. ( In million) 23260.6 27939.7 35447.5

Ratio 0.03 : 1 0.04 : 1 0.02 : 1


If this ratio is 0.5 : 1 than it is good and ideal ratio for the company. If this ratio is like

0.07 : 1 it means the company doesnt have cash & bank balance and if this ratio is like 3:1

it means that the company has wasted cash. Here, all three years ratio are not so far away

from ratio 0.07. So the firm has to increase his cash and bank balance.


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62

(C)(C)(C)(C) LEVERAGE RATIO:LEVERAGE RATIO:LEVERAGE RATIO:LEVERAGE RATIO:----

(1)(1)(1)(1) Proprietors RatioProprietors RatioProprietors RatioProprietors Ratiossss::::----

Formula: - PROPRIETORS FUND X 100TOTAL ASSETS

Year 2003-04 2004-05 2005-06

Prop. Funds ( Inmillion)

36936.2 41343.5 47707.3

Total.Assets.( Inmillion)

71405.6 82911.5 98688.8

Ratio 51.73 % 49.86 % 48.34 %

51.73%

49.86%

48.34%

46.00%

47.00%

48.00%

49.00%

50.00%

51.00%

52.00%

RATIO

2003-04 2004-05 2005-06

YEARS

PROPRIETORS RATIO


If this ratio is higher than 100 % then it shows over capitalization. The standard ratio is

between 40 % to 60 % so here we get all three years ratios are favorable for the company.

The share holder investment are quite well so the have to pay less interest to their share

holders. The year 2003 04 is more favorable.

WorkinWorkinWorkinWorking Noteg Noteg Noteg Note:::: ----


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63

Proprietors Fund:-

Items 2005-06 2004-05 2003-04

Share CapitalAddReserve & Surplus

1011.8

46695.5

1011.8

40331.7

1011.8

35924.4

Proprietors Fund 47707.3 41343.5 36936.2

Total Assets:-

Items 2005-06 2004-05 2003-04

Fixed AssetsAddInvestmentCurrent Assets

11558.4

58569.728560.7

11408.3

45605.825897.4

12320.8

38554.420530.4

Total Assets 98688.8 82911.5 71405.6

((((2222)))) Fixed CapitalFixed CapitalFixed CapitalFixed Capital TTTToooo Fixed AssetsFixed AssetsFixed AssetsFixed Assets RatiRatiRatiRatioooo::::----


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64

3

3.62

4.13

0

0.5

1

1.5

22.5

3

3.5

4

4.5

RATIO

2003-04 2004-05 2005-06

YEARS

FIXED ASSETS TO FIXED CAPITAL RATIO

Formula: - FIXED CAPITALFIXED ASSETS

Year 2003-04 2004-05 2005-06

Fixed Ca. Gearing Cap. ( In million) 36936.2 41343.3 47701.5

Equity Share Cap.( In million) 12320.8 11408.3 11558.4

Ratio 3.00 3.62 4.13


Fixed Capital:-

Items 2005-06 2004-05 2003-04

Share CapitalAddReserve & SurplusSecured loan

1011.8

46695.50.2

1011.8

40331.7--

1011.8

35924.4--

Fixed Capital 47707.5 41343.5 36936.2


If this ratio is 1:1 it is ideal ratio. If this ratio is

very high than there is a situation of over

capitalization in the company. Here all three years

ratio is higher than the 1, so there is a situation ofover capitalization and it is very bad for the

company.


65/82

65

3.86

5.03

6.46

01

2

3

4

5

6

7

RATIO

2003-04 2004-05 2005-06

YEARS

FIXED ASSETS TURNOVER RATIO

(D)(D)(D)(D) ACTIVITY RATIO:ACTIVITY RATIO:ACTIVITY RATIO:ACTIVITY RATIO:----

(1)(1)(1)(1) Fixed Assets Turnover RatioFixed Assets Turnover RatioFixed Assets Turnover RatioFixed Assets Turnover Ratio::::----

Formula: - SALESFIXED ASSETS

Year 2003-04 2004-05 2005-06

SALES ( In million) 47551.4 57363.6 74693.8

Fixed. Assets.( In million) 12320.8 11408.3 11558.4

Ratio 3.86 times 5.03 times 6.46 times


This ratio is related with the different asset of the business. Higher the ratio it is batter

for the company. If this ratio is less than 2 it is very bad for the business and the ratio

between 24 is shows the average situation of business. Here all three years ratio are morethan 4 or near with 4 so we can say that the company in a very excellent position.


66/82

66

0.67

0.69

0.76

0.62

0.64

0.66

0.68

0.7

0.72

0.74

0.76

RATIO

2003-04 2004-05 2005-06

YEARS

TOTAL ASSETS TURNOVER RATIO

(2)(2)(2)(2) Total Assets Turnover RatioTotal Assets Turnover RatioTotal Assets Turnover RatioTotal Assets Turnover Ratio::::----

Formula: - SALESTOTAL ASSETS

Year 2003-04 2004-05 2005-06

SALES ( In million) 47551.4 57363.6 74693.8

Totals Assets.( In million) 71405.6 82911.5 98688.8

Ratio 0.67 times 0.69 times 0.76 times


If this ratio is less than 2 so it is very bad for the company. If this ratio is more than 4 it

is very good for the company. Here, all three years ratio are less than 2 so we can say that

company in a good position. But in compare of last two years the current year ratio is high.

So, company is in good position than last two years.


67/82

67

10.1411.07

14.53

0

2

4

6

8

10

12

14

16

RATIO

2003-04 2004-05 2005-06

YEARS

DABTORS RATIO

(3)(3)(3)(3) Debtors RatioDebtors RatioDebtors RatioDebtors Ratio::::----

Formula: - DEBTORS + B/R X 360CREDIT SALES

Year 2003-04 2004-05 2005-06

Debtors ( In million) 1339.5 1763.5 3015.5

B/R.( In million) 00 00 00

Cr. Sales( In million) 47551.7 57363.6 74693.8

Ratio 10.14 =10 days 11.07=11 days 14.53 =15 days

Assumption:-

Assume 360 days in a year

Assume 100 % sales on credit


The higher the debtors ratio, more unsatisfactory position it shows.

In the year 03-04 the ratio is 10.14. That ratio is increased in year 04-05 as 11.07 and in the

next year 05-06 it is 14.53. So we can say that the companys credit and collection policy

become weak year to year.


68/82

68

3632.73

24

0

5

10

15

20

25

30

35

40

RATIO

2003-04 2004-05 2005-06

YEARS

DABTORS TURNOVER RATIO

(4)(4)(4)(4) Debtors Turnover RatioDebtors Turnover RatioDebtors Turnover RatioDebtors Turnover Ratio::::----

Formula: - 360DEBTORS RATIO

Year 2003-04 2004-05 2005-06

Debtors Ratio ( In million) 10 11 15

Ratio 36.00 TIMES 32.73 TIMES 24.00 TIMES

AnalysAnalysAnalysAnalysis:is:is:is:----

This ratio shows that after how many days we can get money back and how many

times we collect money in 360 days. Less no of days it is better for the company. In last

three years company gets his money back into 10 to 15 days and 24 to 36 times. So it is

good for the company.


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69

67.1262.58

76.74

0

10

20

30

40

50

60

70

80

RATIO

2003-04 2004-05 2005-06

YEARS

CREDITORS RATIO

(5)(5)(5)(5) Creditors RatioCreditors RatioCreditors RatioCreditors Ratio::::----

Formula: - CREDITORS + B/P X 360CREDIT PURCHASES

Year 2003-04 2004-05 2005-06

Creditors( In million) 6231.7 7351.4 11801.8

B/P.( In million) 00 00 00

Cr. Pur.( In million) 33422.3 42288.4 55365.5

Ratio 67.12 =67 days 62.58=63 days 76.74=77 days

Assumption : -

Assume 360 days in a year

Assume 100 % sales on credit


The Lower the creditors ratio, more unsatisfactory position it shows. In the year 03-04 the

ratio is 67.12. That ratio is decreased in year 04-05 as 62.58 and in the next year 05-06 it is

76.74. So we can say that the companys payment policy become weak in the middle year

and it become batter in the year 05-06 (i.e.-76.74).


70/82

70

36 32.73

24

0

5

10

15

20

25

30

35

40

RATIO

2003-04 2004-05 2005-06YEARS

CREDITORS TURNOVER RATIO

((((6666)))) Creditors Turnover RatioCreditors Turnover RatioCreditors Turnover RatioCreditors Turnover Ratio::::----

Formula: - 360

CREDITORS RATIO

Year 2003-04 2004-05 2005-06

Creditors Ratio ( In million) 67 63 77

Ratio 36.00 TIMES 32.73 TIMES 24.00 TIMES


This ratio shows that in how many days the company is gives money back to his

creditors and how many times in a year. If the numbers of days are more it is better for the

company. But very long period is effect the reputation of the company. Here, the company

paid his debt around 77 days in year 2005 06, 63 days in year 2004 05 and around 67

days in the year 2003 04. Company takes more time to pay so it is better for the company .


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71


Cash Flow StatementCash Flow StatementCash Flow StatementCash Flow Statement

8.1 CASH FLOW AFTER TAX 72

8.2 CASH FLOW STATEMENT 73

Cash flow statements are the statements of changes in the financial defined as cash or equivalent

to cash. Thus the cash flows of the firm during a popular period of time. The cash flow statement is

useful for the management to asses its abilities to meet its obligations to trade creditors, to pay

loans, to pay interest to debenture holders. The cash flow statements provides information thatenables users to evaluate the changes in the net assets of the enterprise, its financial structure and

ability to affect the amount and timing of cash flows in order to accept to changing circumstances

and opportunities.

The cash flow statement should report the cash flows during the period classified by

operating, inventory, financial activities. The operating activities are the acquisition and disposed of

the long term assets and other investments not included in cash-equipments and the financing

activities are activities which results in changes in size and composing of the owners capital and

borrowing of the enterprises.


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72

8.18.18.18.1

Cash Flow After Tax:Cash Flow After Tax:Cash Flow After Tax:Cash Flow After Tax:----

Value in million Rs.Particulars

2003-04 2004-05 2005-06

Sales

Less

C.G.S

Gross Profit

Less

Administrative Exp.

Selling & Distribution Exp.

Net Profit

Add

Non operating income

Less

Non operating expenses

E.B.I.T

Less

Interest

E.B.T

Less

Tax

P.A.T

Add

Depreciation

C.F.A.T

47551.7

33.422.3

14129.4

3666.4

3113.8

7349.2

4887.1

180.3

12056.0

9.3

12046.7

2289.1

9757.6

1798.6

11556.5

7363.6

42288.4

15075.2

4126.4

3375.0

7573.8

5738.8

263.5

13049.1

6.7

13042.4

3196.3

9846.1

1853.7

11699.8

74693.8

53365.5

21328.3

4586.9

3640.9

11101.5

6170.2

590.1

16681.6

3.4

16678.2

4791.1

11887.1

1910.0

13797.1


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73

AnalysisAnalysisAnalysisAnalysis Of The Cash FlowOf The Cash FlowOf The Cash FlowOf The Cash Flow::::----

Cash Flow after Tax of the company for the year 2003 04 and 2004 05 not much

different. But in the years 2005 06 the different is very high.

8.28.28.28.2

Cash Flow StatementCash Flow StatementCash Flow StatementCash Flow Statement::::----

Particulars 2003-04 2004-05 2005-06

Cash inflow/out flow arising from operating

activities

6072.9 4408.7 8698.2

Cash inflow/outflow arising from investing from

investing activities

8110.9 3953.2 10875.4

Cash inflow/outflow arising from investing from

financing activities

232.3 308.5 116.8

Net changes in cash/cashNet changes in cash/cashNet changes in cash/cashNet changes in cash/cash

EquipmentsEquipmentsEquipmentsEquipments

493.5493.5493.5493.5 293.293.293.293.2222 206.5206.5206.5206.5

(+) Balance At Beginning Of The(+) Balance At Beginning Of The(+) Balance At Beginning Of The(+) Balance At Beginning Of The

YearYearYearYear

300.3300.3300.3300.3 793.7793.7793.7793.7 1086.91086.91086.91086.9

Cash/Cash Equivalents at theCash/Cash Equivalents at theCash/Cash Equivalents at theCash/Cash Equivalents at theclose of the yearclose of the yearclose of the yearclose of the year

793.8793.8793.8793.8 1086.91086.91086.91086.9 820.9820.9820.9820.9


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74


Comparative StatementComparative StatementComparative StatementComparative Statement

9.1 COMPARATIVE P&LA/C. 81

9.2 COMPARATIVE B/S. 82


75/82

75

9.19.19.19.1

Comparative P&L A/c.Comparative P&L A/c.Comparative P&L A/c.Comparative P&L A/c.

Value in million Rs.Particulars

2003-04 2004-05 2005-06

Sales

Less

C.G.S

Gross ProfitLess

Administrative Exp.

Selling & Distribution Exp.

Financial Exp.

Net Profit

47551.7

33.422.3

14129.4

3666.4

3113.8

44.8

7304.4

57363.6

42288.4

15075.2

4126.4

3375.0

36.6

7537.2

74693.8

53365.5

21328.3

4586.9

3640.9

29.3

13071.2


Net profit of the company in the year 2005 06 very much high in compare of the last

two years. Therefore company growth more increase in the year 2005 06.


76/82

76

9.29.29.29.2

Comparative B/s.Comparative B/s.Comparative B/s.Comparative B/s.::::----

Value in million Rs.Particulars2003-04 2004-05 2005-06

1011.8

35924.4

--

10057.2

2390.4

23260.7

1011.8

40331.7

--

12269.9

2128.0

27939.6

1011.8

46695.5

0.2

14671.3

1902.1

35447.6

72644.5 83681.0 99728.5

12320.8

76.7

38554.4

20530.5

1162.1

11408.3

40.5

45605.7

25897.4

729.1

11558.4

13.4

58569.7

28560.7

1026.3

Share capital

Add

Reserve and surplus

Secured loan

Unsecured loan

Deferred Tax liability

Current Liability

Total Liabilities

Fixed Assets

Add

Tech. Know-how

Investment

Current Assets

Deferred Tax

Total Assets 72644.5 83681.0 99728.5


In last three years companys current liabilities and provisions increase rapidly.

Company made more investment in compare of last two years.


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77


Common SizeCommon SizeCommon SizeCommon Size StatementStatementStatementStatement

10.1 COMMON SIZE P&LA/C. 78

10.2 COMMON SIZE B/S. 79


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78

10.110.110.110.1

Common sizeCommon sizeCommon sizeCommon sizedddd P&L A/c.P&L A/c.P&L A/c.P&L A/c.::::----

Value in million Rs. % Of TotalParticulars

03-04 04-05 05-06 03-04 04-05 05-06

Sales

Less

C.G.S

GrossProfit

Less

Advt.Exp.

Selling &

Distribution Exp.

Financial Exp.

Net Profit

47551.7

33.422.3

14129.4

3666.4

3113.8

44.8

7304.4

57363.6

42288.4

15075.2

4126.4

3375.0

36.6

7537.2

74693.8

53365.5

21328.3

4586.9

3640.9

29.3

13071.2

100

70.30

29.70

7.71

6.54

0.09

15.36

100

73.72

26.28

7.18

5.82

0.06

13.14

100

71.45

28.55

6.14

4.87

0.04

17.50


79/82

79

10.210.210.210.2

Common SizedCommon SizedCommon SizedCommon Sized B/s.:B/s.:B/s.:B/s.:----

Value in million Rs. % Of TotalParticulars

03-04 04-05 05-06 03-04 04-05 05-06

Share capital

Add

Reserve and

surplus

Secured loan

Unsecured

loan

Deferred Tax

liability

Current

Liability

Total

Liabilities

Fixed Assets

Add

Tech. Know-

how

Investment

Current Assets

Deferred Tax

Total Assets

1011.8

35924.4

--

10057.2

2390.4

23260.7

72644.5

12320.8

76.7

38554.4

20530.5

1162.1

72644.5

1011.8

40331.7

--

12269.9

2128.0

27939.6

83681.0

11408.3

40.5

45605.7

25897.4

729.1

83681.0

1011.8

46695.5

0.2

14671.3

1902.1

35447.6

99728.5

11558.4

13.4

58569.7

2

Documents

prashant_bajaj_auto S.Y