Bajaj Auto - Financial Analysis

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Financial Accounting Project|
Bajaj Auto Limited|
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Aayush Thakral (Roll No. 2)|
Anshul Sinha (Roll No. 26)Anurag Tripathi (Roll No. 32)|
7/14/2011|

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Contents
BAJAJ AUTO LIMITED4
Bajaj Plant Locations4
Industry Overview5
Demand and Supply Position for Two-Wheelers6
Major players in Indian Two-Wheeler Industry9
Applicable Laws and Regulations10
The Manufacturing Process/ Operations12
Type of Machinery14
List of Raw Materials17
Raw materials/SKD/Assemblies imported18
List of Components, Assemblies18
Resources required - Others such as consumables19
Resources required - Type of Labour (Process/Operation Wise)20
Resources required – Type of Fuel and Power (Process/Operation Wise)21
Performance evaluation parameters21
Resources required - Source of Power and fuel22
Standards/Norms for relating to consumption of Raw Materials23
Standard Labour Norms24
Yearly production24
Sales Tax/VAT25
Approximate Value (along with quantity cost) for each of the resources per unit of Production26
Segments Served27
Weightage of these segments27
Distribution Arrangements28
Warehousing arrangement29
Vans, Containers, Trucks etc., (Nos.)29
No. of Distribution men30
Yearly total distance covered by vehicles30
Chart of Accounts31
Line Items of Profit & Loss Account37
Balance Sheet38
Performance Measurement Metrics/Ratio39
Analysis of the Performance of Bajaj Auto40

BAJAJ AUTO LIMITED

Bajaj Auto, part of Bajaj Group of companies, is ranked as the world's fourth largest two-wheeler and three-wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture.

Bajaj Plant Locations
* Waluj- Bajaj Nagar, Waluj, Aurangabad - 431 136, Maharashtra * Chakan- MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. Pune, Maharashtra * Pant Nagar- Plot No. 2, Sector 10 Phase -II - E, Pant Nagar, Udhamsingh Nagar, Uttranchal

Industry Overview

India is the 2nd largest producer and consumer of 2 wheelers after China. The 2-wheeler industry in India has been in existence since the 1955 and has primarily consisted of three segments viz. scooters, motorcycles and mopeds. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: * several firms operating below minimum scale of efficiency * under-utilisation of capacity

* usage of outdated technology
Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The...
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