Sumit Project 1
Transcript of Sumit Project 1
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INDEX
SR. NO. CONTENTS PAGE NO.
INDUSTRY CERTIFICATE
DECLARATION BY THESTUDENT
CERTIFICATE BY TRAININGINCHARGE
CERTIFICATE BY THEFACULTY GUIDE
ACKNOWLEDGEMENT
PREFACE
i
ii
iii
iv
v
vi
CHAPTER-I INTRODUCTION TO PROJECT
CHAPTER-II INDUSTRY COMPANYPROFILE
CHAPTER-III RESEARCH METHODOLOGY
CHAPTER-IV DATA ANALYSIS ANDINTERPRETATION
CHAPTER-V FINDINGS
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
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CHAPTER-I
INTRODUCTION TOPROJECT
RATIO ANALYSIS
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FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financialstrengths and weaknesses of the firm and establishing relationship
between the items of the balance sheet and profit & loss account.
Financial ratio analysis is the calculation and comparison of
ratios, which are derived from the information in a companys financial
statements. The level and historical trends of these ratios can be used to
make inferences about a companys financial condition, its operationsand attractiveness as an investment. The information in the statements is
used by
Trade creditors, to identify the firms ability to meet their claims
i.e. liquidity position of the company.
Investors, to know about the present and future profitability of the
company and its financial structure.
Management, in every aspect of the financial analysis. It is the
responsibility of the management to maintain sound financial
condition in the company.
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RATIO ANALYSIS
The term Ratio refers to the numerical and quantitative
relationship between two items or variables. This relationship can be
exposed as
Percentages
Fractions
Proportion of numbers
Ratio analysis is defined as the systematic use of the ratio to
interpret the financial statements. So that the strengths and weaknesses of
a firm, as well as its historical performance and current financial
condition can be determined. Ratio reflects a quantitative relationship
helps to form a quantitative judgment.
STEPS IN RATIO ANALYSIS The first task of the financial analysis is to select the information
relevant to the decision under consideration from the statements
and calculates appropriate ratios.
To compare the calculated ratios with the ratios of the same firm
relating to the past or with the industry ratios. It facilitates in
assessing success or failure of the firm.
Third step is to interpretation, drawing of inferences and report
writing conclusions are drawn after comparison in the shape of
report or recommended courses of action.
BASIS OR STANDARDS OF COMPARISON
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Ratios are relative figures reflecting the relation between
variables. They enable analyst to draw conclusions regarding financial
operations. They use of ratios as a tool of financial analysis involves the
comparison with related facts. This is the basis of ratio analysis. The
basis of ratio analysis is of four types.
Past ratios, calculated from past financial statements of the firm.
Competitors ratio, of the some most progressive and successful
competitor firm at the same point of time.
Industry ratio, the industry ratios to which the firm belongs to
Projected ratios, ratios of the future developed from the projected
or pro forma financial statements
NATURE OF RATIO ANALYSIS
Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting
various ratios for helping in making certain decisions. It is only a means
of understanding of financial strengths and weaknesses of a firm. There
are a number of ratios which can be calculated from the information
given in the financial statements, but the analyst has to select the
appropriate data and calculate only a few appropriate ratios. Thefollowing are the four steps involved in the ratio analysis.
Selection of relevant data from the financial statements depending
upon the objective of the analysis.
Calculation of appropriate ratios from the above data.
Comparison of the calculated ratios with the ratios of the same firm
in the past, or the ratios developed from projected financial
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statements or the ratios of some other firms or the comparison with
ratios of the industry to which the firm belongs.
INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The
inherent limitations of ratio analysis should be kept in mind while
interpreting them. The impact of factors such as price level changes,
change in accounting policies, window dressing etc., should also be kept
in mind when attempting to interpret ratios. The interpretation of ratioscan be made in the following ways.
Single absolute ratio
Group of ratios
Historical comparison
Projected ratios
Inter-firm comparison
GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS
The calculation of ratios may not be a difficult task but their
use is not easy.
Following guidelines or factors may be kept in mind while interpreting
various ratios are
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Accuracy of financial statements
Objective or purpose of analysis
Selection of ratios Use of standards
Caliber of the analysis
IMPORTANCE OF RATIO ANALYSIS
Aid to measure general efficiency
Aid to measure financial solvency
Aid in forecasting and planning
Facilitate decision making
Aid in corrective action
Aid in intra-firm comparison
Act as a good communication
Evaluation of efficiency
Effective tool
LIMITATIONS OF RATIO ANALYSIS
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Differences in definitions
Limitations of accounting records
Lack of proper standards No allowances for price level changes
Changes in accounting procedures
Quantitative factors are ignored
Limited use of single ratio
Background is over looked
Limited use
Personal bias
CLASSIFICATIONS OF RATIOS
The use of ratio analysis is not confined to financial manager
only. There are different parties interested in the ratio analysis for
knowing the financial position of a firm for different purposes. Various
accounting ratios can be classified as follows:
1. Traditional Classification
2. Functional Classification
3. Significance ratios
1. Traditional Classification
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It includes the following.
Balance sheet (or) position statement ratio: They deal with the
relationship between two balance sheet items, e.g. the ratio of
current assets to current liabilities etc., both the items must,
however, pertain to the same balance sheet.
Profit & loss account (or) revenue statement ratios: These ratios
deal with the relationship between two profit & loss account items,
e.g. the ratio of gross profit to sales etc.,
Composite (or) inter statement ratios: These ratios exhibit therelation between a profit & loss account or income statement item
and a balance sheet items, e.g. stock turnover ratio, or the ratio of
total assets to sales.
2. Functional Classification
These include liquidity ratios, long term solvency and
leverage ratios, activity ratios and profitability ratios.
3. Significance ratios
Some ratios are important than others and the firm may
classify them as primary and secondary ratios. The primary ratio is one,
which is of the prime importance to a concern. The other ratios thatsupport the primary ratio are called secondary ratios.
IN THE VIEW OF FUNCTIONAL CLASSIFICATION THERATIOS ARE
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1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio
1. LIQUIDITY RATIOS
Liquidity refers to the ability of a concern to meet its current
obligations as & when there becomes due. The short term obligations of a
firm can be met only when there are sufficient liquid assets. The short
term obligations are met by realizing amounts from current, floating (or)
circulating assets The current assets should either be calculated liquid (or)
near liquidity. They should be convertible into cash for paying
obligations of short term nature. The sufficiency (or) insufficiency of
current assets should be assessed by comparing them with short-term
current liabilities. If current assets can pay off current liabilities, then
liquidity position will be satisfactory.
To measure the liquidity of a firm the following ratios can be
calculated
Current ratio
Quick (or) Acid-test (or) Liquid ratio
Absolute liquid ratio (or) Cash position ratio
(a) CURRENT RATIO:
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Current ratio may be defined as the relationship
between current assets and current liabilities. This ratio also known as
Working capital ratio is a measure of general liquidity and is most widely
used to make the analysis of a short-term financial position (or) liquidity
of a firm.
Current assets
Current ratio =Current liabilities
Components of current ratio
CURRENT ASSETS CURRENT LIABILITIES
Cash in hand Out standing or accrued expensesCash at bank Bank over draftBills receivable Bills payableInventories Short-term advancesWork-in-progress Sundry creditorsMarketable securities Dividend payableShort-term investments Income-tax payableSundry debtors Prepaid expenses
(b) QUICK RATIO
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Quick ratio is a test of liquidity than the current ratio. The
term liquidity refers to the ability of a firm to pay its short-term
obligations as & when they become due. Quick ratio may be defined as
the relationship between quick or liquid assets and current liabilities. An
asset is said to be liquid if it is converted into cash with in a short period
without loss of value.
Quick or liquid assetsQuick ratio =
Current liabilities
Components of quick or liquid ratio
QUICK ASSETS CURRENT LIABILITIESCash in hand Out standing or accrued expensesCash at bank Bank over draftBills receivable Bills payableSundry debtors Short-term advancesMarketable securities Sundry creditorsTemporary investments Dividend payable
Income tax payable
(c) ABSOLUTE LIQUID RATIO
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Although receivable, debtors and bills receivable are
generally more liquid than inventories, yet there may be doubts regarding
their realization into cash immediately or in time. Hence, absolute liquid
ratio should also be calculated together with current ratio and quick ratio
so as to exclude even receivables from the current assets and find out the
absolute liquid assets.
Absolute liquid assetsAbsolute liquid ratio =
Current liabilities
Absolute liquid assets include cash in hand etc. The
acceptable forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth
absolute liquid assets are considered to pay Rs.2 worth current liabilities
in time as all the creditors are nor accepted to demand cash at the same
time and then cash may also be realized from debtors and inventories.
Components of Absolute Liquid Ratio
ABSOLUTE LIQUID ASSETS CURRENT LIABILITIESCash in hand Out standing or accrued expensesCash at bank Bank over draftInterest on Fixed Deposit Bills payable
Short-term advancesSundry creditorsDividend payableIncome tax payable
2. LEVERAGE RATIOS
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The leverage or solvency ratio refers to the ability of a
concern to meet its long term obligations. Accordingly, long term
solvency ratios indicate firms ability to meet the fixed interest and costs
and repayment schedules associated with its long term borrowings.
The following ratio serves the purpose of determining the
solvency of the concern.
Proprietory ratio
(a) PROPRIETORY RATIO
A variant to the debt-equity ratio is the proprietory ratio
which is also known as equity ratio. This ratio establishes relationship
between share holders funds to total assets of the firm.
Shareholders fundsProprietory ratio =
Total assets
SHARE HOLDERS FUND TOTAL ASSETSShare Capital Fixed AssetsReserves & Surplus Current Assets
Cash in hand & at bank Bills receivableInventoriesMarketable securitiesShort-term investments
Sundry debtorsPrepaid Expenses
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3. ACTIVITY RATIOS
Funds are invested in various assets in business to make
sales and earn profits. The efficiency with which assets are managed
directly effect the volume of sales. Activity ratios measure the efficiency
(or) effectiveness with which a firm manages its resources (or) assets.
These ratios are also called Turn over ratios because they indicate the
speed with which assets are converted or turned over into sales.
Working capital turnover ratio
Fixed assets turnover ratio
Capital turnover ratio
Current assets to fixed assets ratio
(a) WORKING CAPITAL TURNOVER RATIO
Working capital of a concern is directly related to sales.
Working capital = Current assets - Current liabilities
It indicates the velocity of the utilization of net working
capital. This indicates the no. of times the working capital is turned over
in the course of a year. A higher ratio indicates efficient utilization of working capital and a lower ratio indicates inefficient utilization.
Working capital turnover ratio=cost of goods sold/working
capital.
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Components of Working Capital
CURRENT ASSETS CURRENT LIABILITIESCash in hand Out standing or accrued expensesCash at bank Bank over draftBills receivable Bills payableInventories Short-term advancesWork-in-progress Sundry creditorsMarketable securities Dividend payableShort-term investments Income-tax payable
Sundry debtors Prepaid expenses
(b) FIXED ASSETS TURNOVER RATIO
It is also known as sales to fixed assets ratio. This ratio
measures the efficiency and profit earning capacity of the firm. Higher
the ratio, greater is the intensive utilization of fixed assets. Lower ratio
means under-utilization of fixed assets.
Cost of SalesFixed assets turnover ratio =
Net fixed assets
Cost of Sales = Income from Services
Net Fixed Assets = Fixed Assets - Depreciation
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(c) CAPITAL TURNOVER RATIOS
Sometimes the efficiency and effectiveness of the operations
are judged by comparing the cost of sales or sales with amount of capital
invested in the business and not with assets held in the business, though
in both cases the same result is expected. Capital invested in the business
may be classified as long-term and short-term capital or as fixed capital
and working capital or Owned Capital and Loaned Capital. All Capital
Turnovers are calculated to study the uses of various types of capital.
Cost of goods soldCapital turnover ratio =
Capital employed
Cost of Goods Sold = Income from Services
Capital Employed = Capital + Reserves & Surplus
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(d) CURRENT ASSETS TO FIXED ASSETS RATIO
This ratio differs from industry to industry. The increase in
the ratio means that trading is slack or mechanization has been used. A
decline in the ratio means that debtors and stocks are increased too much
or fixed assets are more intensively used. If current assets increase with
the corresponding increase in profit, it will show that the business is
expanding.
Current AssetsCurrent Assets to Fixed Assets Ratio =
Fixed Assets
Component of Current Assets to Fixed Assets Ratio
CURRENT ASSETS FIXED ASSETSCash in hand Machinery
Cash at bank BuildingsBills receivable PlantInventories VehiclesWork-in-progressMarketable securitiesShort-term investmentsSundry debtors Prepaid expenses
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4. PROFITABILITY RATIOS
The primary objectives of business undertaking are to earn
profits. Because profit is the engine, that drives the business enterprise.
Net profit ratio
Return on total assets
Reserves and surplus to capital ratio
Earnings per share
Operating profit ratio
Price earning ratio
Return on investments
(a) NET PROFIT RATIO
Net profit ratio establishes a relationship between net profit
(after tax) and sales and indicates the efficiency of the management in
manufacturing, selling administrative and other activities of the firm.
Net profit after taxNet profit ratio=
Net sales
Net Profit after Tax = Net Profit () Depreciation () Interest () Income
Tax
Net Sales = Income from Services
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It also indicates the firms capacity to face adverse economic
conditions such as price competitors, low demand etc. Obviously higher
the ratio, the better is the profitability.
(b) RETURN ON TOTAL ASSETS
Profitability can be measured in terms of relationship
between net profit and assets. This ratio is also known as profit-to-assets
ratio. It measures the profitability of investments. The overall profitability
can be known.
Net profitReturn on assets =
Total assets
Net Profit = Earnings before Interest and Tax
Total Assets = Fixed Assets + Current Assets
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(c) RESERVES AND SURPLUS TO CAPITAL RATIO
It reveals the policy pursued by the company with regard to
growth shares. A very high ratio indicates a conservative dividend policy
and increased ploughing back to profit. Higher the ratio better will be the
position.
Reserves& surplusReserves & surplus to capital =
Capital
(d) EARNINGS PER SHARE
Earnings per share is a small verification of return of equity
and is calculated by dividing the net profits earned by the company and
those profits after taxes and preference dividend by total no. of equityshares.
Net profit after taxEarnings per share =
Number of Equity shares
The Earnings per share is a good measure of profitability
when compared with EPS of similar other components (or) companies, it
gives a view of the comparative earnings of a firm.
(e) OPERATING PROFIT RATIO
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Operating ratio establishes the relationship between cost of
goods sold and other operating expenses on the one hand and the sales on
the other.
Operating cost
Operation ratio =Net sales
However 75 to 85% may be considered to be a good ratio in
case of a manufacturing under taking.
Operating profit ratio is calculated by dividing operating
profit by sales.
Operating profit = Net sales - Operating cost
Operating profit
Operating profit ratio =Sales
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(f) PRICE - EARNING RATIO
Price earning ratio is the ratio between market price per
equity share and earnings per share. The ratio is calculated to make an
estimate of appreciation in the value of a share of a company and is
widely used by investors to decide whether (or) not to buy shares in a
particular company.
Generally, higher the price-earning ratio, the better it is. If
the price earning ratio falls, the management should look into the causes
that have resulted into the fall of the ratio.
Market Price per SharePrice Earning Ratio =
Earnings per Share
Capital + Reserves & SurplusMarket Price per Share =
Number of Equity Shares
Earnings before Interest and TaxEarnings per Share =
Number of Equity Shares
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(g) RETURN ON INVESTMENTS
Return on share holders investment, popularly known as
Return on investments (or) return on share holders or proprietors funds is
the relationship between net profit (after interest and tax) and the
proprietors funds.
Net profit (after interest and tax)Return on shareholders investment =
Shareholders funds
The ratio is generally calculated as percentages by
multiplying the above with 100.
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CHAPTER- II
COMPANY PROFILE
COMPANY PROFILE
Type - Private
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Company Name- Yamaha Motor Co. Ltd.
Founded- July 1,1955
Capital- 85,666 million yen (as of march 31, 2011)
President- Hiroyuki Yanagi
Employee(Consolidated)- 52,184 (as of December 31,2010)Parent : 10,302 (as of December 31,2010)
Sales (Consolidated)- 1,294,131 million yen
(from January 1, 2010 to December 31,2010)Parent: 470,134 million yen(from January 1, 2010 to December 31, 2010)
Lines of Businesses-
Manufacture and sales of motorcycles, scooters, electrically power assisted bicycles, boats, sail boats, personal watercrafts, pools, utility
boats, fishing boats, outboard motors, diesel engines, 4-wheel ATVs,side-by-side vehicles, racing kart engines, golf cars, multi-purposeengines, generators, water pumps, snowmobiles, small-sized snowthrowers, automobile engines, intelligent machinery, industrial-useunmanned helicopters, electrical power units for wheelchairs, helmets.Import and sales of various types of products, development of tourist
businesses and management of leisure, recreational facilities and relatedservices.
Sales Profile
Sales (%) by product category (consolidated)
Sales (%) by region (consolidated)
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Headquarters- 2500 Shingai, Iwata-shi,Shizuoka-ken, Japan
Group Companies-Consolidated subsidiaries: 106
Non-consolidated subsidiaries: 6 (by the equity method)Affiliates: 26 (by the equity method) (as of March 31,2011)
HISTORY OF THE COMPANY
After World War II , company president Genichi Kawakamisakirepurposed the remains of the company's war-time production machineryand the company's expertise in metallurgical technologies to themanufacture of motorcycles . The YA-1 (AKA Akatombo, the "RedDragonfly"), of which 125 were built in the first year of production(1958), was named in honor of the founder. It was a 125cc, singlecylinder, two-stroke, street bike patterned after the German DKW RT125 (which the British munitions firm, BSA , had also copied in the post-war era and manufactured as the Bantam and Harley-Davidson as the
Hummer ). In 1959, the success of the YA-1 resulted in the founding of the Yamaha Motor Co., Ltd.
In October 1987, on its 100th anniversary, the name was changed to TheYamaha Corporation .
Yamaha has won a total of 36 World Championships, including 3 inMotoGP and 9 in the preceding 500cc 2-stroke class, and 1 in WorldSuperbike.
Yamaha created the innovations which lead to the modern motocross
bike, as they were the first to build a production monoshock motocross bike (1975 for 250 and 400, 1976 for 125) and one of the first to have awater-cooled motocross production bike (1977 in works bikes, 1981 inoff-the-shelf bikes).
Situated at Faridabad, Haryana, Yamaha Motor India Private Limited is a100% owned subsidiary of Yamaha Motors Company Limited of Japan.Total employee strength of the company is more than 3000 people.
The company has opened "Yamaha One"- a branded dealership at Delhiand plans to open more in the future. Along with this, Japan has also set
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up another subsidiary-Yamaha Motors India Sales Pvt. Ltd.(YMIS) thatdeals with the sales and after sales services for Yamaha brand of bikes. Itis located at Surajpur, outside Delhi with an employee strength of 120.
It started its manufacturing in India with local partner Escorts in 1996. Itacquired 100% ownership in 2001. YAMAHA is currently operating inIndian market with various models viz. CRUX (100cc), ALBA (106cc)and GLADIATOR (125cc). The company has its manufacturing unit in Faridabad and Surajpur,which supports the production of motorcycles for domestic as well asoverseas market. Considering environment sensitive issues, YamahaMotors also goes into the concept of environment friendly technology
that brags of effluent treatment plant, rain water - harvesting mechanismand a motivated forestation drive. The company believe in taking care of not only customers motoring needs but also the needs of futuregenerations.
The YAMAHA plant is ISO 9001, 14001 and 18001 certified. The firstcertification is for quality management where as the second and third oneare for environmental and safety standards and health respectively..
List of Directors
Directors of Yamaha Motor Co., Ltd. are as follows;
Title Name
President and Representative Director Hiroyuki Yanagi
Representative Director Takaaki Kimura
Director Toyoo Ohtsubo
Director Yoshiteru Takahashi
Director Masahito Suzuki
Director Hiroyuki Suzuki
Director Kozo Shinozaki
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Director (Outside) Shuji Ito
Director (Outside) Masayoshi Furuhata
Director (Outside) Eizo Kobayashi
Director (Outside) Yuko Kawamoto
Standing Corporate Auditor Haruhiko Wakuda
Standing Corporate Auditor Tsutomu Mabuchi
Corporate Auditor (Outside) Naomoto Ohta
Corporate Auditor (Outside) Norihiko Shimizu
Corporate Auditor (Outside) Tetsuo Kawawa
As of March 25, 2010
Business Operations
Yamaha Motor divisions, key products
The growing world of Yamaha products, for the water, for the land, intown and into the future
Motorcycles
Sports bikes, Trail bikes,Road racers,Motocrossers, etc.
Commuter Vehicles
Scooters, Business-use bikes
Recreational Vehicles
All-terrain vehicles, Side
Boats
Powerboats, Sailboats,
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http://www.yamaha-motor.co.jp/global/about/business/mc/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/cv/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/rv/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/boat/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/boat/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/rv/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/cv/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/mc/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/mc/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/cv/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/rv/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/boat/index.html -
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by side vehicles,Snowmobiles
Utility boats, Custom boats
Marine EnginesOutboard motors,Electric marine motors,Marine diesel engines,Stern drives
Personal WatercraftPersonal Watercraft
Electrically PowerAssisted Bicycles
Electrically Power Assisted Bicycles
Automobile Engines
Automobile Engines
Aeronautics
Industrial-use unmannedhelicopters
Golf Cars
Golf cars, Land cars
Power Products
Generators,Multipurpose engines,Water pumps, Snowthrowers, etc.
Pools
Pools, Water slidesystems, Aqua trainer tubs, Pool-relatedequipment
Aqua Environment /Environmental Devices
Alkaline ionized water
apparatus, Water purifiers, Filtrationequipment, Oil
Intelligent Machinery
Surface mounters,Compact industrial
robots, etc.
Life Science
Astaxanthin preparation,Astaxanthin supplement
Wheelchairs
Wheelchair electric driveunits, Electricwheelchairs, etc.
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http://www.yamaha-motor.co.jp/global/about/business/me/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pw/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/ev/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/ev/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/am/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/sky/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/golf/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pp/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pool/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/aqua/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/aqua/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/im/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/bio/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/wheelchairs/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/wheelchairs/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/bio/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/im/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/aqua/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pool/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pp/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/golf/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/sky/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/am/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/ev/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pw/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/me/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/me/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pw/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/ev/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/ev/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/am/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/sky/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/golf/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pp/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/pool/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/aqua/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/aqua/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/im/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/bio/index.htmlhttp://www.yamaha-motor.co.jp/global/about/business/wheelchairs/index.html -
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Parts (accessories)
Parts, Accessories,Apparel, Helmets,
Engine oil, etc.
VISION
We will establish Yamaha as the exclusive and trusted brand of customers by creating KANDO (touching their hearts) the first time andevery time with world class products and services delivered by peoplehaving passion for customers.
MISSION
We are committed to be the exclusive & trusted brand renowned for marketing and manufacturing of Yamaha products, focusing on servingour customer where we can build long term relationships by raising their lifestyles through performance excellence, productive design andinnovative technology. Our innovative solutions will always exceed thechanging needs of our customers and provide value added vehicles.
Build the winning team with capabilities for success, thriving in a climatefor action and delivering results. our employees are the most valuableassets and we intend to develop them to achieve international level of
professionalism with progressive career development. As a goodcorporate citizen, we will conduct our business ethically and socially in aresponsible manner with concerns for the environment.
CORE COMPETENCIES
CUSTOMER FIRST
CHALLENGING SPIRIT
TEAM WORK
FRANK & FAIR ORGANIZATION
GROUP COMPANIES
Yamaha motorcycles sales japan co. ltd.
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Yamaha motor engineering co.
Yamaha kumamoto products co. ltd.
Yamaha motor assist co. ltd.Yamaha motor electronics ltd.
Yamaha football club co. ltd. AND MANY MORE.
YAMAHA MOTORS IN INDIA
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YAMAHA MOTORCYCLES
MODEL CAPACITY
Yamaha YBR 110 110 CC
Yamaha YZF-R1 2010 -
Yamaha VMAX 2009 1679CC
Yamaha Fazer 153CC
Yamaha FZS 150 CCRajdoot Excel-T 173 CC
Yamaha RXZ 132 CC
Rajdoot Deluxe 173 CC
Rajdoot Standard 173 CC
Yamaha Enticer 123.7 CC
Yamaha Escorts Ace 173 CC
Yamaha RX 135 132 CC
Yamaha YBX 125 125 CC
Yamaha Gladiator
Gladiator Std
Gladiator DX
123.7 CC
Yamaha Libero G5 106 CC
Yamaha Crux 106 CC
Yamaha Gladiator Type JA 123.7 CC
Yamaha Alba 106 106 CC
Yamaha YZF R1 1000 CC
Yamaha MT 01 1670 CC
Yamaha YZF-R15 150 CC
Yamaha FZ 16 150 CC
http://auto.indiamart.com/motorcycles/yamaha-ybr-110/http://auto.indiamart.com/motorcycles/yamaha-yzf-r1-2010/http://auto.indiamart.com/motorcycles/yamaha-vmax/http://auto.indiamart.com/motorcycles/yamaha-fazer/http://auto.indiamart.com/motorcycles/yamaha-fzs/http://auto.indiamart.com/motorcycles/rajdoot-excel-t/http://auto.indiamart.com/motorcycles/yamaha-crux/http://auto.indiamart.com/motorcycles/rajdoot-deluxe/http://auto.indiamart.com/motorcycles/rajdoot-standard/http://auto.indiamart.com/motorcycles/yamaha-enticer/http://auto.indiamart.com/motorcycles/escorts-ace/http://auto.indiamart.com/motorcycles/yamaha-gladiator/http://auto.indiamart.com/motorcycles/yamaha-gladiator/index.html#gladiator-stdhttp://auto.indiamart.com/motorcycles/yamaha-gladiator/index.html#gladiator-dxhttp://auto.indiamart.com/motorcycles/yamaha-libero-g5/http://auto.indiamart.com/motorcycles/yamaha-crux/http://auto.indiamart.com/motorcycles/yamaha-gladiator-ja/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-alba/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-yzf-r1/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-mt-01/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-yzf-r15/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-fz/http://auto.indiamart.com/motorcycles/yamaha-ybr-110/http://auto.indiamart.com/motorcycles/yamaha-yzf-r1-2010/http://auto.indiamart.com/motorcycles/yamaha-vmax/http://auto.indiamart.com/motorcycles/yamaha-fazer/http://auto.indiamart.com/motorcycles/yamaha-fzs/http://auto.indiamart.com/motorcycles/rajdoot-excel-t/http://auto.indiamart.com/motorcycles/yamaha-crux/http://auto.indiamart.com/motorcycles/rajdoot-deluxe/http://auto.indiamart.com/motorcycles/rajdoot-standard/http://auto.indiamart.com/motorcycles/yamaha-enticer/http://auto.indiamart.com/motorcycles/escorts-ace/http://auto.indiamart.com/motorcycles/yamaha-gladiator/http://auto.indiamart.com/motorcycles/yamaha-gladiator/index.html#gladiator-stdhttp://auto.indiamart.com/motorcycles/yamaha-gladiator/index.html#gladiator-dxhttp://auto.indiamart.com/motorcycles/yamaha-libero-g5/http://auto.indiamart.com/motorcycles/yamaha-crux/http://auto.indiamart.com/motorcycles/yamaha-gladiator-ja/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-alba/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-yzf-r1/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-mt-01/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-yzf-r15/index.htmlhttp://auto.indiamart.com/motorcycles/yamaha-fz/ -
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COMPANY PROFILE
The two-wheeler industry in India has been in existence since 1955. Itconsists of three segments scooters, motorcycles and mopeds. These arevery popular as a mode of transport due to their fuel efficiency and easeof use in congested traffic. The number of two wheelers sold is severaltimes that of cars. According to a recent survey by SIAM (Society of Indian Automobile Manufacturers) the no. of two wheelers sold in thefiscal year ended in march,2008 is 7.25 million units as compared to 1.5million units of corresponding 4 wheelers ( passenger cars, SUVs etc.).
The two-wheeler market in India is the biggest contributor to the
automobile industry with a size of Rs.100000 million. Foreigncollaborations have been playing a major role in the growth of the Indian
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YAMAHA SCOOTERETTES/MOPEDS
MODEL CAPACITY
Toro Rosa 100 CC
Toro Jazz 109.7 CC
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two-wheeler market, and most of them are Japanese firms.Auto segment in India is widely leaded by two wheeler manufacturer aswe can seen in the graph. So there is a lot of opportunity for two wheeler manufacturers .
Indian two -wheeler contributes the largest volumes amongst all the
segments in automobile industry. This segment can be broadly
categorized into 3 sub-segments viz.; scooters, motorcycles and mopeds.
In the last four to five years, the two-wheeler market has witnessed a
marked shift towards motorcycles at the expense of scooters. In the rural
areas, consumers have come to prefer sturdier bikes to withstand the bad
road conditions. In the process the share of motorcycle segment has
grown from 48% to 58%, the share of scooters declined drastically from
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33% to 25%, while that of mopeds declined by 2% from 19% to 17%
during the year 2008-09.
The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment to install catalytic converters. All the
new models are now being replaced by 4-stroke motorcycles. Excise duty
on motorcycles has been reduced from 32% to 24%, resulting in price
reduction, which has aided in propelling the demand for motorcycles.
Two wheeler fleet composition in India:-
Almost all the two-wheelers companies except YAMAHA Motors havelaunched scooter version in India. Although currently Bajaj Auto is notmanufacturing any scooters previously Bajaj was market leader of twowheelers in India due to varieties of scooter models. Recently HeroHonda is producing a scooter model PLEASURE, TVS Motors is
producing SCOOTY, HMSI is manufacturing various scooters likeACTIVA, ETERNO etc. But YAMAHA has limited itself to bikemanufacturing only. During the year, there have been important developments in two-wheeler
industry. The competition has strengthened though there are hardly anynew entrants into the industry.
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There is an increasing emphasis on price and this has led to cost cuttingefforts all across the industry, thereby, making the customer an ultimate
beneficiary.
The trend also saw introduction of new motorcycles with capacityranging from 100 to 180cc bikes. We anticipate that many more newmodels will be launched during the year and provide customers plenty of choice at competitive prices
The motorcycle segment was initially dominated by Enfield 350cc bikes
and Escorts 175cc bike. The two-wheeler market was opened to foreign
competition in the mid-80s. And the then market leaders - Escorts and
Enfield - were caught unaware by the onslaught of the 100cc bikes of the
four Indo-Japanese joint ventures. With the availability of fuel efficient
low power bikes, demand swelled, resulting in Hero Honda - then the
only producer of four stroke bikes (100cc category), gaining a top slot.
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CHAPTER - III
RESEARCH METHODOLOGY
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OBJECTIVES OF THE STUDY
The basic objective of studying the ratio of the company toknow the financial position of the company.
Another reason is to study that the company is going in
profit or loss.
To know the borrowings of the company as well as the
liquidity position of the company.
To study the current assets and current liabilities so as to
know whether the shareholders could invest in IYMPL or
not.
To study the solvency of the business and the capacity to
give interest to the long-term loan lenders (debenture
holders) and dividend to the shareholders.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research
problem. It may be understand as science of studying how research isdone systematically. In it we study the various step that are generally
adopted by a researcher in studying his problem along with logic behind
him.
Methodology may be a description of process, or may be expanded toinclude a philosophically coherent collection of theories , concepts or ideas as they relate to a particular discipline or field of inquiry.
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TYPES OF RESEARCH
1. Descriptive research
2. Analytical research
3. Qualitative research
4. Quantitative research
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DESCRIPTIVE RESEARCH :-
To conduct the research work accurately, we conducted the descriptive
research. It includes surveys & fact-finding inequity of different kinds .
ANALYTICAL RESEARCH: _
In it we have to use the fact & information already available & analysis
of these to make an evaluation of project.
QUALITATIVE RESEARCH:-
In selecting the appropriate research design of the study & the type of
data needed, the choice of data collection techniques is four grouped.
It is done for:-
1. Consumer needs.2. Consumers preferences for brand.
3. In depth understanding of consumers.
4. Availability for consumer.
QUANTITATIVE RESEARCH:-
Quantitative research is obtained to rate the different aspects on
parameter i.e. image of brand, brand equity, expectation of customers,
awareness among customer for scheme, switch ability of customers etc.
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STEPS IN RESEARCH METHODOLOGY:-
COLLECTION OR DATAORGANISATION F DATA
PRESENTATION OF DATA
ANALYSIS OF DATA
INTERPRETATION OF DATA
SAMPLING DESIGN
Sampling is necessary because it is almost impossible to examine theentire parent population (i.e. the entire universe) various factors such astime available , cost, purpose of study etc. make it necessary for theresearchers to choose a sample. It should neither be too small nor too big.It should be manageable. The sample size of post one year is taken for
present study due to time limitation.
DATA COLLECTION METHOD
After the sample has been taken the type of information to be sought wasdecided upon, the next step is to collect the data. As the data collected isto be the base of what we plan to find out, the relevant care should betaken that the errors in methods of collection of data involved areminimized. The factors of availability of time, cost and humaninvolvement come to affect the reliability of the data collected.
Primary Data
Are generated in a study specifically designed to accommodate the dataneeds of the problem at hand. In the present study we made use of secondary data collected from their websites and from their records.
Secondary Data
Means the statistics not gathered for the immediate study at hand but for some other data. It is the data collected by someone for purposes other than solving the problem being investigated.
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SCOPE OF THE STUDY
This study is vital to me in a significant way. It does have someimportance for the company too. These are as follows-
This project will be a learning device for the finance student.
Through this project I would study the various methods of theratios analysis.
This project helps to know the borrowings of the company as well
as the liquidity position of the company.
LIMITATION OF STUDY
However I have tried my best in collecting the relevant informations yetthere are always present some limitations under which researcher has towork. Here following are some limitations under which I had to work asshown below :
SAMPLE SIZE
The sample size analyzed was limited over one year, which may not befully representative of the universe. A large sample size could not betaken due to time & cost constraints.
TIME CONSTRAINTS
We had a limited time for conducting this analysis report, which was of two months only. So some shortfalls may be present.
MONEY
The money available with the researcher also imposed a limitation on thecomprehensive of this research.
LACK OF EXPERIENCE
The lack of experience may have caused some errors in administration of the research.
NON-COVEREGE OF CETAIN ASPECT
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Due to confidential nature of some documents the same were notavailable for study.
CHAPTER -4DATA ANALYSIS AND
INTERPRETATION
LIQUIDITY RATIO
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1. CURRENT RATIO
(Amount in Rs.)
Current Ratio Year Current Assets Current Liabilities Ratio
2006 58,574,151 7,903,952 7.412007 69,765,346 31,884,616 2.192008 72,021,081 16,065,621 4.482009 91,328,208 47,117,199 1.942010 115,642,068 30,266,661 3.82
GRAPHICAL REPRESENTATION
7.41
2.19
4.48
1.94
3.82
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Ratio
2003 2004 2005 2006 2007
Years
CURRENT RATIO
Ratio
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Interpretation
As a rule, the current ratio with 2:1 (or) more is considered
as satisfactory position of the firm.
When compared with 2009, there is an increase in the
provision for tax, because the debtors are raised and for that the provision
is created. The current liabilities majorly included Lanco Group of
company for consultancy additional services.
The sundry debtors have increased due to the increase to
corporate taxes.In the year 2009, the cash and bank balance is reduced
because that is used for payment of dividends. In the year 2010, the loans
and advances include majorly the advances to employees and deposits to
government. The loans and advances reduced because the employees set
off their claims.
The other current assets include the interest attained from the
deposits. The deposits reduced due to the declaration of dividends. So the
other current assets decreased.
The huge increase in sundry debtors resulted an increase in
the ratio, which is above the benchmark level of 2:1 which shows the
comfortable position of the firm.
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2. QUICK RATIO
(Amount in Rs.)
Quick Ratio
Year Quick Assets Current Liabilities Ratio
2006 58,574,151 7,903,952 7.41
2007 52,470,336 31,884,616 1.65
2008 69,883,268 16,065,620 4.35
2009 89,433,596 47,117,199 1.9
2010 115,431,868 30,266,661 3.81
GRAPHICAL REPRESENTATION
7.41
1.65
4.35
1.90
3.81
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Ratio
2003 2004 2005 2006 2007
Years
QUICK RATIO
Ratios
Interpretation
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Quick assets are those assets which can be converted into
cash with in a short period of time, say to six months. So, here the sundry
debtors which are with the long period does not include in the quick
assets.
Compare with 2009, the Quick ratio is increased because the
sundry debtors are increased due to the increase in the corporate tax and
for that the provision created is also increased. So, the ratio is also
increased with the 2009.
3. ABOSULTE LIQUIDITY RATIO
(Amount in Rs.)
Absolute Cash Ratio
Year Absolute Liquid Assets Current Liabilities Ratio
2006 31,004,027 7,903,952 3.922007 10,859,778 31,884,616 0.342008 39,466,542 16,065,620 2.462009 53,850,852 47,117,199 1.142010 35,649,070 30,266,661 1.18
GRAPHICAL REPRESENTATION
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3.92
0.34
2.46
1.14 1.18
0
0.5
1
1.5
2
2.5
3
3.5
4
Ratios
2003 2004 2005 2006 2007
Years
ABSOLUTE CASH RATIO
Ratios
Interpretation
The current assets which are ready in the form of cash are considered as
absolute liquid assets. Here, the cash and bank balance and the interest on
fixed assts are absolute liquid assets.
In the year 2009, the cash and bank balance is decreased due to decrease
in the deposits and the current liabilities are also reduced because of the
payment of dividend. That causes a slight increase in the current yearsratio.
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LEVERAGE RATIOS
4. PROPRIETORY RATIO
(Amount in Rs.)
Proprietory Ratio
Year Share Holders Funds Total Assets Ratio
2006 67,679,219 78,572,171 0.862007 53,301,834 88,438,107 0.62008 70,231,061 89,158,391 0.792009 56,473,652 106,385,201 0.532010 97,060,013 129,805,102 0.75
GRAPHICAL REPRESENTATION
0.86
0.60
0.79
0.53
0.75
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Ratios
2003 2004 2005 2006 2007
Years
PROPRIETORY RATIO
Ratios
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Interpretation
The proprietary ratio establishes the relationship between
shareholders funds to total assets. It determines the long-term solvency of
the firm. This ratio indicates the extent to which the assets of the
company can be lost without affecting the interest of the company.
There is no increase in the capital from the year2007. The
share holders funds include capital and reserves and surplus. The
reserves and surplus is increased due to the increase in balance in profit
and loss account, which is caused by the increase of income from
services.
Total assets, includes fixed and current assets. The fixed assets are
reduced because of the depreciation and there are no major increments in
the fixed assets. The current assets are increased compared with the year
2009. Total assets are also increased than previous year, which resulted
an increase in the ratio than older.
ACTIVITY RATIOS
5. WORKING CAPITAL TURNOVER RATIO
(Amount in Rs.)
Working Capital Turnover Ratio Year Income From Services Working Capital Ratio
2006 36,309,834 50,670,199 0.722007 53,899,084 37,880,730 1.422008 72,728,759 55,355,460 1.312009 55,550,649 44,211,009 1.262010 96,654,902 85,375,407 1.13
GRAPHICAL REPRESENTATION
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0.72
1.42 1.311.26
1.13
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Ratio
2003 2004 2005 2006 2007
Years
WORKING CAPITAL TURNOVER RATIO
Ratio
Interpretation
Income from services is greatly increased due to the extrainvoice for Operations & Maintenance fee and the working capital is also
increased greater due to the increase in from services because the huge
increase in current assets.
The income from services is raised and the current assets
are also raised together resulted in the decrease of the ratio of 2010 as
compared with 2009.
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6. FIXED ASSETS TURNOVER RATIO
(Amount in Rs.)
Fixed Assets Turnover Ratio
Year Income From Services Net Fixed Assets Ratio
2006 36,309,834 28,834,317 1.262007 53,899,084 29,568,279 1.822008 72,728,759 17,137,310 4.242009 55,550,649 15,056,993 3.692010 96,654,902 14,163,034 6.82
GRAPHICAL REPRSENTATION
1.261.82
4.24 3.69
6.82
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Ratios
2003 2004 2005 2006 2007
Years
FIXED ASSETS TURNOVER RATIO
Ratios
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Interpretation
Fixed assets are used in the business for producing the goods
to be sold. This ratio shows the firms ability in generating sales from all
financial resources committed to total assets. The ratio indicates the
account of one rupee investment in fixed assets.
The income from services is greaterly increased in the
current year due to the increase in the Operations & Maintenance fee due
to the increase in extra invoice and the net fixed assets are reduced
because of the increased charge of depreciation. Finally, that effected a
huge increase in the ratio compared with the previous years ratio.
7. CAPITAL TURNOVER RATIO
(Amount in Rs.)
Capital Turnover Ratio
Year Income From Services Capital Employed Ratio
2006 36,309,834 37,175,892 0.982007 53,899,084 53,301,834 1.012008 72,728,759 70,231,061 1.042009 55,550,649 56,473,652 0.982010 96,654,902 97,060,013 1.00
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GRAPHICAL REPRESENTATION
0.98
1.01
1.04
0.98
1.00
0.94
0.95
0.96
0.97
0.98
0.99
1.00
1.01
1.02
1.03
1.04
Ratios
2003 2004 2005 2006 2007
Years
CAPITAL TURNOVER RATIO
Ratios
Interpretation
This is another ratio to judge the efficiency and
effectiveness of the company like profitability ratio.
The income from services is greaterly increased compared
with the previous year and the total capital employed includes capital and
reserves & surplus. Due to huge increase in the net profit the capital
employed is also increased along with income from services. Both are
effected in the increment of the ratio of current year.
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8. CURRENT ASSETS TO FIXED ASSETS RATIO
(Amount in Rs.)
Current Assets To Fixed Assets Ratio
Year Current Assets Fixed Assets Ratio
2006 58,524,151 19,998,020 2.932007 69,765,346 18,672,761 3.742008 72,021,081 17,137,310 4.202009 91,328,208 15,056,993 6.072010 115,642,068 14,163,034 8.17
GRAPHICAL REPRESENTATION
2.933.74
4.20
6.07
8.17
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
Ratios
2003 2004 2005 2006 2007
Years
CURRENT ASSETS TO FIXED ASSETS RATIO
Ratios
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Interpretation
Current assets are increased due to the increase in the sundry
debtors and the net fixed assets of the firm are decreased due to the
charge of depreciation and there is no major increment in the fixed assets.
The increment in current assets and the decrease in fixed
assets resulted an increase in the ratio compared with the previous year
PROFITABILITY RATIOS
GENERAL PROFITABILITY RATIOS
9. NET PROFIT RATIO
(Amount in Rs.)
Net Profit Ratio
Year Net Profit After Tax Income from Services Ratio
2006 21,123,474 36,039,834 0.592007 16,125,942 53,899,084 0.302008 16,929,227 72,728,759 0.232009 18,259,580 55,550,649 0.332010 40,586,359 96,654,902 0.42
GRAPHICAL REPRESENTATION
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0.59
0.30
0.23
0.33
0.42
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Ratios
2003 2004 2005 2006 2007
Years
NET PROFIT RATIO
Ratios
Interpretation
The net profit ratio is the overall measure of the firms
ability to turn each rupee of income from services in net profit. If the net
margin is inadequate the firm will fail to achieve return on shareholders
funds. High net profit ratio will help the firm service in the fall of income
from services, rise in cost of production or declining demand.
The net profit is increased because the income from servicesis increased. The increment resulted a slight increase in 2010 ratio
compared with the year 2009.
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10. OPERATING PROFIT
(Amount in Rs.)
Operating Profit Year Operating Profit Income From Services Ratio
2006 36,094,877 36,309,834 0.992007 27,576,814 53,899,084 0.512008 29,540,599 72,728,759 0.412009 31,586,718 55,550,649 0.572010 67,192,677 96,654,902 0.70
GRAPHICAL REPRESENTATION
0.99
0.51
0.41
0.57
0.70
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.901.00
Ratios
2003 2004 2005 2006 2007
Years
OPERATING PROFIT RATIO
Ratios
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Interpretation
The operating profit ratio is used to measure the relationship
between net profits and sales of a firm. Depending on the concept, it will
decide.
The operating profit ratio is increased compared with the last
year. The earnings are increased due to the increase in the income from
services because of Operations & Maintenance fee. So, the ratio is
increased slightly compared with the previous year.
11. RETURN ON TOTAL ASSETS RATIO
(Amount in Rs.)
Return on Total Assets Ratio
Year Net Profit After Tax Total Assets Ratio
2006 21,123,474 78,572,171 0.272007 16,125,942 88,438,107 0.182008 16,929,227 89,158,391 0.192009 18,259,580 106,385,201 0.172010 40,586,359 129,805,102 0.31
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GRAPHICAL REPRESENTATION
0.27
0.18 0.190.17
0.31
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
Ratios
2003 2004 2005 2006 2007
Years
RETURN ON T OTAL ASSETS
Ratios
Interpretation
This is the ratio between net profit and total assets. The ratio
indicates the return on total assets in the form of profits.
The net profit is increased in the current year because of the
increment in the income from services due to the increase in Operations
& Maintenance fee. The fixed assets are reduced due to the charge of
depreciation and no major increments in fixed assets but the current
assets are increased because of sundry debtors and that effects an increase
in the ratio compared with the last year i.e. 2009.
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12. RESERVES & SURPLUS TO CAPITAL RATIO
(Amount in Rs.)
Reserves & Surplus To Capital Ratio
Year Reserves & Surplus Capital Ratio
2006 65,599,299 2,079,920 31.542007 34,582,554 18,719,280 1.852008 51,511,781 18,719,280 2.752009 37,754,372 18,719,280 2.022010 78,340,733 18,719,280 4.19
GRAPHICAL REPRESENTATION
31.54
1.85 2.75 2.024.19
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Ratios
2003 2004 2005 2006 2007
Years
RESERVES & SRUPLUS TO CAPITAL RATIO
Ratios
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Interpretation
The ratio is used to reveal the policy pursued by the
company a very high ratio indicates a conservative dividend policy and
vice-versa. Higher the ratio better will be the position.
The reserves & surplus is decreased in the year 2009, due to
the payment of dividends and in the year 2010 the profit is increased. But
the capital is remaining constant from the year 2007. So the increase in
the reserves & surplus caused a greater increase in the current years ratio
compared with the older.
OVERALL PROFITABILITY RATIOS
13. EARNINGS PER SHARE
(Amount in Rs.)Earnings Per Share
Year Net Profit After Tax No of Equity Shares Ratio
2006 21,123,474 207,992 101.562007 16,125,942 1,871,928 8.612008 16,929,227 1,871,928 9.042009 18,259,580 1,871,928 9.75
2010 40,586,359 1,871,928 21.68
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GRAPHICAL REPRESENTATION
101.56
8.619.04 9.75
21.68
0.00
20.00
40.00
60.00
80.00
100.00
120.00
Ratios
2003 2004 2005 2006 2007
Years
EARNINGS PER SHARE
Ratios
Interpretation
Earnings per share ratio are used to find out the return that
the shareholders earn from their shares. After charging depreciation and
after payment of tax, the remaining amount will be distributed by all the
shareholders.Net profit after tax is increased due to the huge increase in
the income from services. That is the amount which is available to the
shareholders to take. There are 1,871,928 shares of Rs.10/- each. The
share capital is constant from the year 2007. Due to the huge increase in
net profit the earnings per share is greaterly increased in 2010.
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14. PRICE EARNINGS (P/E) RATIO
(Amount in Rs.)
Price Earning (P/E) Ratio
Year Market Price Per Share Earnings Per Share Ratio
2006 32.54 101.56 0.322007 28.47 8.61 3.302008 37.52 9.04 4.152009 30.17 9.75 3.092010 51.85 21.68 2.39
GRAPHICAL REPRESENTATION
0.32
3.30
4.15
3.09
2.39
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Ratios
2003 2004 2005 2006 2007
Years
P/E RATIO
Ratios
Interpretation
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The ratio is calculated to make an estimate of application in the value of
share of a company.
THE MARKET PRICE PER SHARE IS INCREASED DUE TO THE
INCREASE IN THE RESERVES & SURPLUS. THE EARNINGS
PER SHARE ARE ALSO INCREASED GREATERLY
COMPARED WITH THE LAST YEAR BECAUSE OF INCREASE
IN THE NET PROFIT. SO, THE RATIO IS DECREASED
COMPARED WITH THE PREVIOUS YEAR .
15. RETURN ON INVESTMENT
(Amount in Rs.)
Return on Investment
Year Net Profit After Tax Share Holders Fund Ratio
2006 21,123,474 67,679,219 0.312007 16,125,942 53,301,834 0.32008 16,929,227 70,231,061 0.242009 18,259,580 56,473,652 0.322010 40,586,359 97,060,013 0.42
GRAPHICAL REPRESENTATION
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0.31 0.30
0.24
0.32
0.42
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
Ratios
2003 2004 2005 2006 2007
Years
RETURN ON INVESTMENT RATIO
RatioS
Interpretation
This is the ratio between net profits and shareholders funds. The ratio is
generally calculated as percentage multiplying with 100.
The net profit is increased due to the increase in the income from services
ant the shareholders funds are increased because of reserve & surplus. So,
the ratio is increased in the current year.
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CHAPTER -5FINDINGS, CONCLUSIONS
& SUGGESTIONS
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FINDINGS OF THE STUDY
1. The current ratio has shown
in a fluctuating trend as 7.41, 2.19, 4.48, 1.98, and 3.82 during2006 of which indicates a continuous increase in both current
assets and current liabilities.
2. The quick ratio is also in a
fluctuating trend through out the period 2006 10 resulting as
7.41, 1.65, 4.35, 1.9, and 3.81. The companys present liquidity
position is satisfactory.
3. The absolute liquid ratio has
been decreased from 3.92 to 1.18, from 2006 10.
4. The proprietory ratio has
shown a fluctuating trend. The proprietory ratio is increased
compared with the last year. So, the long term solvency of the firm
is increased.
5. The working capital
increased from 0.72 to 1.13 in the year 2006 10.
6. The fixed assets turnover
ratio is in increasing trend from the year 2006 10 (1.26, 1.82,
4.24, 3.69, and 6.82). It indicates that the company is efficiently
utilizing the fixed assets.
7. The capital turnover ratio is
increased form 2006 08 (0.98, 1.01, and 1.04) and decreased in
2009 to 0.98. It increased in the current year as 1.00.
8. The current assets to fixed
assets ratio is increasing gradually from 2006 10 as 2.93, 3.74,
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4.20, 6.07 and 8.17. It shows that the current assets are increased
than fixed assets.
9. The net profit ratio is in
fluctuation manner. It increased in the current year compared with
the previous year form 0.33 to 0.42.
10. The net profit is increased
greaterly in the current year. So the return on total assets ratio is
increased from 0.17 to 0.31.
11. The Reserves and Surplus toCapital ratio is increased to 4.19 from 2.02. The capital is constant,
but the reserves and surplus is increased in the current year.
12. The earnings per share was
very high in the year 2006 i.e., 101.56. That is decreased in the
following years because number of equity shares are increased and
the net profit is decreased. In the current year the net profit isincreased due to the increase in operating and maintenance fee. So
the earnings per share is increased.
13. The operating profit ratio is
in fluctuating manner as 0.99, 0.51, 0.41, 0.57 and 0.69 from 2006
10 respectively.
14. Price Earnings ratio is
reduced when compared with the last year. It is reduced from 3.09
to 2.39, because the earnings per share is increased.
15. The return on investment is
increased from 0.32 to 0.42 compared with the previous year. Both
the profit and shareholders funds increase cause an increase in the
ratio.
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SUMMARY
1) After the analysis of Financial Statements, the company status is
better, because the Net working capital of the company is doubled
from the last years position.
2) The company profits are huge in the current year; it is better to
declare the dividend to shareholders.
3) The company is utilising the fixed assets, which majorly help to the
growth of the organisation. The company should maintain that
perfectly.
4) The company fixed deposits are raised from the inception, it givesthe other income i.e., Interest on fixed deposits.
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SUGGESTIONS
Standard are so high than actual. So standard must be change.
Revamping is done as soon as possible by doing this cost of
production will be produce.
Need to make proper planning of freights because their contribution in cost is very high.
Need to make proper production planning during maintenance .
In order to increase awareness among customers IYMPL shouldreformulate their advertising strategies by focusing more on
broadcast media like television and print media like newspapers.
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CONCLUSION
The companys overall position is at a good position.
Particularly the current years position is well due to raise in the profitlevel from the last year position. It is better for the organization to
diversify the funds to different sectors in the present market scenario.
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BIBLIOGRAPHY
BOOKS:
Accounting Manual of IYMPL
Annual Report (2006-07,2007-08,2008-09)
Kothari C.R., Research Methodology Methods and Techniques (Second edition) New Age InternationalPublishers
Jain T.R. and Aggarwal,Dr. S.C. Statistics For MBAVK publications
Gupta SP and Gupta MP Business statistics TwelthEdition, Sultan Chand Publications
Gupta Shashi K., Management Accounting, KalyaniPublications
Goel DK, Analysis of Financial statement,10th
edition, Avichal Publishers
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Pandey IM Financial Management 3 rd Edition, VikasPublications
WEBSITES
WWW.INDIAYAMAHAMOTORS.COM
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
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Balance sheet as on 31 st March 2010
(Amount in Rs.)
Particulars 2009- 10 2008 - 09SOURCES OF FUNDS :
1) SHAREHOLDERS' FUNDS
(a) Capital 18,719,280 18,719,280(b) Reserves and Surplus 78,340,733 37,754,372
97,060,013 56,473,6522) DEFFERED TAX LIABILITY 2,478,428 2,794,350
TOTAL 99,538,441 59,268,002APPLICATION OF FUNDS :
1) FIXED ASSETS(a) Gross Block 31,057,596 29,767,979(b) Less: Depreciation 16,894,562 14,710,986(c) Net Block 14,163,034 15,056,993
2) CURRENT ASSETS, LOANS AND ADVANCES(a) Sundry Debtors 80,712,804 37,856,420(b) Cash and Bank Balances 34,043,520 51,690,326(c) Other Current Assets 152,228 857,753(d) Loans and Advances 733,516 923,709
115,642,068 91,328,208LESS : CURRENT LIABILITIES AND PROVISIONS
(a) Liabilities 21,596,916 38,591,265(b) Provisions 8,669,745 8,525,934
30,266,661 47,117,199NET CURRENT ASSETS 85,375,407 44,211,009
TOTAL 99,538,441 59,268,002
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Profit and Loss Account for the period ended on 31 st March 2010
(Amount in Rs.)
Particulars 2009- 10 2008 09I.INCOME
Income from Services 96,654,902 55,550,649Other Income 2,398,220 2,285,896TOTAL 99,053,122 57,836,545
II.EXPENDITURE Administrative and Other Expenses 81,334,750 75,599,719
81,334,750 75,599,719Less: Expenditure Reimbursable under Operationsand Maintenance Agreement 49,474,305 49,349,892
TOTAL 31,860,445 26,249,827III. PROFIT BEFORE DEPRECIATION ANDTAXATION 67,192,677 31,586,718Provision for Depreciation 2,183,576 2,279,917IV. PROFIT BEFORE TAXATION 65,009,101 29,306,801Provision for Taxation
- Current 24,292,000 10,680,440- Deferred (315,922) (67,359)
- Fringe Benefits 446,663 434,140V. PROFIT AFTER TAXATION 40,586,359 18,259,580Surplus brought forward from Previous Year 26,699,257 44,951,851VI. PROFIT AVAIALABLE FOR APPROPRIATIONS 67,285,617 63,211,431Transfer to General Reserve - 4,495,185
Interim Dividend Rs.15 per equity Share (2005- NIL) - 28,078,920Provision for Dividend Distribution Tax - 3,938,069
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VII. BALANCE CARRIED TO BALANCE SHEET 67,285,617 26,699,257
Earnings Per Share - Basic & Diluted 22 10