Maruti Financial Report
MARUTI UDYOG LTD.
Final Progress Report
(09 September 2008)
Table of Contents
INTRODUCTION 2
ABOUT MARUTI SUZUKI 3
SWOT ANALYSIS 4
FUTURE OUTLOOK 4
AUDITOR’S VIEW 5
DIRECTOR’S REPORT’S INTERPRETATION 5
REVENUE RECOGNITION POLICY 6
INVENTORY VALUATION POLICY 7
DEPRECIATION POLICY 8
ACCOUNTING POLICY FOR VALUATION OF TANGIBLE AND INTANGIBLE ASSETS 9
CLAUSE 49 AND ITS IMPLEMENTATION AT MARUTI 10
BALANCE SHEET 13
INCOME STATEMENT 13
RATIO ANALYSIS 14
CASH FLOW STATEMENT ANALYSIS 24
INTER COMPANY ANALYSIS 25
OTHER ACCOUNTING POLICIES AND THEIR IMPACT ON QULAITY OF EARNING 25
OPERATING CYCLE CALCULATION AND TREND ANALYSIS 28
VITALITY OF MARUT’s SHARES 29
PART I - BASIC ANALYTICAL TECHNIQUES
INTRODUCTION
The rapid economic growth in the country in the past decade has augured well for all sectors. The automobile industry hailed as ‘the industry of industries’ by Peter Drucker, has a strong multiplier effect and is both driver and indicator of economic growth. It provides direct or indirect employment to over 13 million people.
Indian auto manufacturers produced 1.71 m (million) cars and 2.31 m motor vehicles in 2007¹. Domestic passenger car sales increased by 11.8 % to 1.20 m in 2007-08 (year ended March 2008) whereas two-wheeler (motorcycles, scooters and mopeds) sales decreased slightly to 7.25 m.
Statistics show that India is the tenth and ninth largest producer of motor vehicles and passenger cars respectively, and has beaten major car producers such as UK and Italy.
Source: OICA (International Organization of Motor Vehicle Manufacturers)
Some of the biggest players in Indian passenger car segment are Tata Motors, Maruti Udyog, Hyundai, Ford, FIAT, General Motors and Honda.
[pic]
*Numbers represent number of vehicle units sold Source: http://knowindia.net/auto.html
ABOUT MARUTI SUZUKI
Maruti Udyog, now Maruti Suzuki, is the first automobile company to be started in India. Maruti Udyog Limited (MUL) was established
Final Progress Report
(09 September 2008)
Table of Contents
INTRODUCTION 2
ABOUT MARUTI SUZUKI 3
SWOT ANALYSIS 4
FUTURE OUTLOOK 4
AUDITOR’S VIEW 5
DIRECTOR’S REPORT’S INTERPRETATION 5
REVENUE RECOGNITION POLICY 6
INVENTORY VALUATION POLICY 7
DEPRECIATION POLICY 8
ACCOUNTING POLICY FOR VALUATION OF TANGIBLE AND INTANGIBLE ASSETS 9
CLAUSE 49 AND ITS IMPLEMENTATION AT MARUTI 10
BALANCE SHEET 13
INCOME STATEMENT 13
RATIO ANALYSIS 14
CASH FLOW STATEMENT ANALYSIS 24
INTER COMPANY ANALYSIS 25
OTHER ACCOUNTING POLICIES AND THEIR IMPACT ON QULAITY OF EARNING 25
OPERATING CYCLE CALCULATION AND TREND ANALYSIS 28
VITALITY OF MARUT’s SHARES 29
PART I - BASIC ANALYTICAL TECHNIQUES
INTRODUCTION
The rapid economic growth in the country in the past decade has augured well for all sectors. The automobile industry hailed as ‘the industry of industries’ by Peter Drucker, has a strong multiplier effect and is both driver and indicator of economic growth. It provides direct or indirect employment to over 13 million people.
Indian auto manufacturers produced 1.71 m (million) cars and 2.31 m motor vehicles in 2007¹. Domestic passenger car sales increased by 11.8 % to 1.20 m in 2007-08 (year ended March 2008) whereas two-wheeler (motorcycles, scooters and mopeds) sales decreased slightly to 7.25 m.
Statistics show that India is the tenth and ninth largest producer of motor vehicles and passenger cars respectively, and has beaten major car producers such as UK and Italy.
Source: OICA (International Organization of Motor Vehicle Manufacturers)
Some of the biggest players in Indian passenger car segment are Tata Motors, Maruti Udyog, Hyundai, Ford, FIAT, General Motors and Honda.
[pic]
*Numbers represent number of vehicle units sold Source: http://knowindia.net/auto.html
ABOUT MARUTI SUZUKI
Maruti Udyog, now Maruti Suzuki, is the first automobile company to be started in India. Maruti Udyog Limited (MUL) was established