The Financial Analysis of Maruti Suzuki India Limited for the Financial Year 2010-11

Topics: Maruti Suzuki, Balance sheet, Suzuki Pages: 34 (8664 words) Published: September 17, 2012
THE FINANCIAL ANALYSIS OF MARUTI SUZUKI INDIA LIMITED FOR THE FINANCIAL YEAR 2010-11 Subject: Financial Accounting and Management Accounting (MBLA-205)

Submitted to: Mrs. Sailaja Jonnalagadda

Submitted by: Bhavin Karia

Roll No.: ML- FS&CM 2011-13

NALSAR University of Law, City Campus 3-5-874/18, Hyderguda, Hyderabad-500029

Table of Contents Page(s) 1. INTRODUCTION

1.1 1.2 1.3 1.4 1.5 1.6

Introduction Research objectives Research Hypotheses Research Methodology Research Plan/Scheme Research Scope and Limitations 2. INTRODUCTION OF THE COMPANY

4 5 5 6 6 6

2.1 2.2 2.3 2.4 2.5

About the Company Board of Directors Group Companies in India Industry Overview for 2010-11 Company’s Performance during 2010-11 3. DIRECTORS REPORT

6 7 7 8 10

3.1 3.2

What is Directors Report Contents of Directors Report 4. CORPORATE GOVERNANCE PHILOSOPHY

13 13

4.1 4.2 4.3

Company’s Philosophy on Corporate Governance Contents of Corporate Governance Management Discussion and Analysis

16 17 23


5. BALANCE SHEET AND P&L ACCOUNT ANALYSIS 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Balance Sheet of Maruti Suzuki for the year ended 31 St Mar. 2011 Profit and Loss A/c of Maruti Suzuki for the year ended 31 st Mar 2011 Cash Flow Statement Balance Sheet Analysis Schedule Wise P&L A/c Analysis Schedule Wise Significant Accounting Policies and IFRS Accounting Standards 6. COMPARATIVE AND RATIO ANALYSIS 24 25 26 28 42 45 48

6.1 6.2 6.3 6.4

Meaning of Corporate, Cost and Management Audit Horizontal Analysis of Balance Sheet Horizontal Analysis of Profit & Loss A/c Ratio Analysis 7. NEW PRODUCT COST_BENEFIT ANALYSIS

49 50 52 53

7.1 7.2 7.3 7.4

Introduction of new Product Underlying Assumptions Cost Sheet and Break Even Point Analysis Recommendations 8. CONCLUSION

59 59 60 62



63 64


List of Books List of Websites Articles


I INTRODUCTION 1.1 We know business is mainly concerned with the financial activities. In order to

ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decis ion making purposes. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statements if required. Analysis means establishing a meaningful relationship between the various items of the two financial statements with each other in such a way that a conclusion is drawn. Financial statements means : 1) Profit and Loss Account or Income Statement 2) Balance Sheet or Position Statement They are prepared at the end of a given period of time. They are the indicators of profitability and financial soundness of the business concern. The term financial analysis is also known as analysis and interpretation of financial state ments. It refers to the establishing meaningful relationship between various items of the two financial statements i.e. Income Statement and position statement. It determines financial strength and weaknesses of the firm. Ana lysis of fina ncia l stateme nts is an atte mpt to assess the effic ienc y and performance of an enterprise. Thus, the analysis and interpretation of financial statements is very essential to measure the efficiency, profitability, financial soundness and future prospects of the business units. Financial analysis serves the following purposes:  Measuring the Profitability;  Indicating the trend of Achievements;  Assessing the growth potential of business;  Comparative Position in relation to other firms;  Assess overall financial strength;  Assess solvency of the firm.


1.2 Research objectives This project aims to analyze and study the Balance Sheet and Profit and Loss Account of Maruti Suzuki India Limited for the financial year ended March 31, 2011. This project intends to study and interpret...
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