COMPARATIVE ANALYSIS OF FINANCIAL STATEMENTS OF

AUTOMOBILE TWO WHEELER COMPANIES SPECIAL REFERENCE TO

HERO MOTOCORP & BAJAJ AUTO

Submitted in partial fulfillment of the requirements

for the award of the degree of

Master of Business Administration

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Ms. Sonal Ahuja Shweta Sharma

11719103918

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

DELHI-110085
Batch (2018-2020)

i
 Certificate

I, Ms. Shweta Sharma, Roll No. 11719103918 certify that the Project Report/Dissertation

(MS-202 or MIB-212) entitled “Comparative Analysis Of Financial Statements Of

Automobile Two Wheeler Companies Special Reference To Hero Motocorp & Bajaj

Auto” is completed by me and it is an authentic work carried out by me at Gitarattan

International Business School. The matter embodied in this project work has not been

submitted earlier for the award of any degree or diploma to the best of my knowledge and

belief.

Signature of the Student

Date:

Certified that the Project Report/Dissertation (MS-202 or MIB-212) entitled

“Comparative Analysis of Financial Statements of Automobile Two Wheeler
Companies Special Reference to Hero Motocorp & Bajaj Auto” done by Ms. Shweta
Sharma, Roll No.11719103918, is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide: Ms. Sonal Ahuja
Designation: Gitarattan International
Business School, Delhi-110085

Countersigned

Director/Project Coordinator

ii
 Acknowledgement

Project Report is a venture that requires co-operation of many people. The report would

not have been possible without the kind support and help of many individuals.

I feel pleasure in taking this opportunity to express my sincere regards to my project

guide Ms. Sonal Ahuja (Assistant Professor) of Gitarattan International Business School,

New Delhi. Without her guidance, valuable suggestions, constructive criticisms and

encouragement, the project would not have been possible.

I am also very thankful to Dr. Uma Gulati (Academic Coordinator), for her continuous

encouragement and advice which were of immense help to me.

I express my gratitude to Dr.B.S.Hothi, Director, Gitarattan International Business

School for providing full moral support in terms of infrastructural facilities during

my project work. I am also indebted to all faculty members for their for their

continuous , encouragement support and guidance.

My thanks and appreciations also go to my colleague in developing the project and

people who have willingly helped me out with their abilities and made it possible that the

project reached a successful accomplishment.

Shweta Sharma

Enrollment No. 11719103918

iii
 Executive Summary

This research work was conducted on “Comparative Analysis of Financial Statements

of Automobile Two Wheeler Companies Special Reference to Hero Motocorp &

Bajaj Auto”. The Objective of the study is to Study the Comparative analysis of

Financial Statement of Two-Wheeler Companies and to analyze the liquidity,

Profitability and solvency performance of selected Two-wheeler companies.

Scope of study: Due to shortage of time and resources I have selected Two Automobile

company of Two Wheeler sector and taken 8 ratios and the data for 10 years (i.e. from

2010 to 2019) of the selected company. For Literature Review 15 research papers were

studied and the point of interest were noted and mentioned in report.

The study is entirely based on secondary data. The data has been compiled from Annual

Reports of the respective companies, Text Books, Reference Books, Journals, Articles,

Magazines and from the Internet.

Hypothesis: The methods used for testing the hypotheses are Independent T -Test and

the tests have been applied using MS Excel and SPSS.

H01: There is no significant difference between the values of current ratio and quick ratio

among the selected Two Wheeler companies.

Ha1: There is significant difference between the values of current ratio and quick ratio

among the selected Two Wheeler companies.

H02: There is no significant difference between Return on Equity, Return on Assets,

Return on Capital Employed and Earning per Share of selected Two-wheeler companies.

iv
Ha2: There is significant difference between Return on Equity, Return on Assets, Return

on Capital Employed and Earning per Share of selected Two-wheeler companies.

H03: There is no significant difference between Proprietary Ratio and Sales to Asset

Ratio of selected Two-wheeler companies.

Ha3: There is significant difference between Proprietary Ratio and Sales to Asset Ratio of

selected Two-wheeler companies.

Findings of the Study:

The current ratio of Bajaj Auto is the highest among the both companies which indicates

that it efficiently meets its short term obligations by use of working capital and the short

term creditors feel secured for the repayment by the company.

Return on capital employed ratio tells us the returns earned on the investment made and

the total capital employed. As it is obvious the profit is the motive of the firm, the higher

the ratio, the better it is. Hero MotoCorp is earning a better return as compared to its

competitor Bajaj because this ratio is more than the ratio of Bajaj.

Earning per share ratio is very important from the investor's point of view because they

want returns on their investments. This ratio tells us the earnings made per share. Hero

MotoCorp is performing better than Bajaj Auto.

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 CONTENTS

S No Topic Page No

1 Certificate (s) i

2 Acknowledgement (s) ii

3 Executive Summary iv-v

4 List of Tables vi –vii

5 List of Figures viii

6 List of Abbreviations ix

7 Chapter-1: Introduction 1-26

8 Chapter-2: Literature Review 27-37

9 Chapter-3: Data Presentation & Analysis 38-60

10 Chapter-4: Summary and Conclusions 61-62

11 Chapter-5: Recommendations 63

12 References/Bibliography 64-66

13 Appendices/Annexure 67-88

LIST OF TABLES

Table No Title Page No

1.1 Market share of various Automobile companies 12

1.2 Market Share of Hero MotoCorp (India) 15

1.3 Present Leadership of Bajaj Auto Limited 23

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3.1 Current Ratio and Quick Ratio of HMCL & BAL 41

from FY 2009-10 to 2018-19

3.2 ROE and EPS of HMCL & BAL from FY 2009-10 to 43

2018-19

3.3 ROCE and ROA of HMCL & BAL from FY 2009-10 45

to 2018-19

3.4 Proprietary Ratio and Sales to Total Assets Ratio of 48

HMCL & BAL from FY 2009-10 to 2018-19

3.5 Comparative analysis of Current ratio of HMCL & 49

BAL

3.6 Independent T-Test of Current ratio of HMCL & 50

BAL

3.7 Comparative analysis of Quick ratio of HMCL & 51

BAL

3.8 Independent T-Test of Quick ratio of HMCL & BAL 51

3.9 Comparative analysis of ROE of HMCL & BAL 52

3.10 Independent T-Test of ROE of HMCL & BAL 53

3.11 Comparative analysis of EPS of HMCL & BAL 54

3.12 Independent T-Test of EPS of HMCL & BAL 54

3.13 Comparative analysis of ROCE of HMCL & BAL 55

3.14 Independent T-Test of ROCE of HMCL & BAL 56

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3.15 Comparative analysis of ROA of HMCL & BAL 56

3.16 Independent T-Test of ROA of HMCL & BAL 57

3.17 Comparative analysis of Proprietary Ratio of HMCL 58

& BAL

3.18 Independent T-Test of Proprietary Ratio of HMCL & 58

BAL

3.19 Comparative analysis of Sales to Total Aseets Ratio 59

of HMCL & BAL

3.20 Independent T-Test of Sales to Total Aseets Ratio of 60

HMCL & BAL

LIST OF FIGURES

Figure No Title Page No

1.1 Evolution of the Automobile Industry in India 4

1.2 Market Share of Motorcycle Segment 10

1.3 Market Share of Motorcycle, scooter and Mopeds 12

3.1 Current Ratio and Quick Ratio of HMCL & BAL 42

from FY 2009-10 to 2018-19

3.2 ROE and EPS of HMCL & BAL from FY 2009-10 to 44

2018-19

3.3 ROCE and ROA of HMCL & BAL from FY 2009-10 46

to 2018-19

viii
3.4 Proprietary Ratio and Sales to Total Assets Ratio of 49

HMCL & BAL from FY 2009-10 to 2018-19

LIST OF ABBREVIATIONS

S No Abbreviated Name Full Name

1 HMCL Hero MotoCorp Limited

2 EPS Earnings Per Share

3 BAL Bajaj Auto Limited

4 ROE Return on Equity

5 ROCE Return On Capital Employed

6 ROA Return On Assets

7 FY Financial Year

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 CHAPTER-1: INTRODUCTION

1.1 Profile of the company:

1.11 Introduction

The Indian automobile industry includes two-wheeler, commercial vehicles,

passenger vehicles, and three-wheelers which play a crucial role in growth of the

Indian economy. India has emerged as Asia’s fourth largest exporter of automobiles,

behind Japan, South Korea and Thailand. The country is expected to top the world in

car volumes with approximately 611 million vehicles on the nation’s roads by 2050.

The Economic progress of this industry is indicated by the amount of goods and

services produced which give the capacity for transportation and boost the sale of

vehicles.

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent

year-on-year to 3.99 million units. It was the seventh largest manufacturer of

commercial vehicles in 2018.

Two-wheeler sales in India reached an all-time high as of 2019, when India's auto

industry sold some 21 million units. This figure is almost double the 2011 sales, when

just 11.77 million two-wheeler units were sold in India. The Two Wheelers segment

dominates the market in terms of volume owing to a growing middle class and a

young population. Moreover, the growing interest of the companies in exploring the

rural markets further aided the growth of the sector.

Market Size Of Automobile Industry

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Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-

19 with 26.27 million vehicles getting sold in FY19. Domestic automobile production

increased at 6.96 per cent CAGR between FY13-19 with 30.92 million vehicles

manufactured in the country in FY19.

In FY19, year-on-year growth in domestic sales among all the categories was

recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-

on-year growth in the sales of three-wheelers.

Premium motorbike sales in India crossed one million units in FY18. During January-

September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in

India at 7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury

vehicles segment according to J D Power 2018 India sales satisfaction index (luxury).

Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-

18.

The Evolution of the Automobile Industry in India

The first car that plied on Indian roads was as early as 1897 and the first Indian to

own a car in 1901 was Jamshedji Tata. It was in 1942, before India’s independence

that Hindustan Motors manufactured the first automobile in India.

Soon after India’s independence, the Government of India tried to boost the sector by

encouraging manufacturing of automobiles. Before that, the cars were imported

directly.

The automobile sector formally came into being in the year 1952 when the

Government appointed its first tariff commission with the aim of indigenizing this

industry. The year 1952 also marked the introduction of passenger cars in the country.

2
Manufacturers like Hindustan Motors, Premier Automobiles and Standard Motors

came into the limelight.

Even SUV’s started being manufactured by Mahindra and Mahindra, Bajaj, Standard

Motors, etc. Cumbersome and medium commercial vehicles were made by 7

manufacturers which included Ashok Motors, Simpsons and Co., Premier Motors and

more. Two-wheeler vehicles like scooters, motor bikes or mopeds were

manufactured by Bajaj Auto, Escorts Group, Royal Enfield, Automobiles Product of

India, Ideal Jawa, etc.

3
 •India was an importer of automobiles
1930s

•The Indian automobile industry started its own manufacturing unit

1940s

•Tremendous trade restrctions could not boost the automobile industry

1950-60

•The market was largely dominated by Hindustan Motors, with the Ambassador
1960-80 model

•Maruti came into the competition and swept the market

1983

•The Govt. of India started promoting the automobile industry; Delhi Auto Expo was
1984-92 estabhlished

•The Year of Lineralisation and the opening up of FDI

1992

•The mereger of Maruti and Suzuki swept the market with 60% market share
1996

•Almost all major car companies expanded their presence in India by estabhlishing
2000 manufacturing units

•India emerged as the 4th largest exporter of passenger cars after Japan, South Korea
2009 and Thailand

•India became the 6th largest car manufacturer in the world .

2011 •India is Asia's 2nd largest two-wheeler manufacturer

Chart No. 1.1: Evolution of the Automobile Industry in India

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Segmentation Of The Vehicles

Passenger Cars

Passenger vehicles are one which are used to carry passenger or used as a mode to

carry passenger. Car is a private vehicle which have many types: Micro-car,

Subcompact car Economy Car, Compact car, Mid-size car, Entry-level luxury car,

Full-size car, Mid-size luxury car, MPV, Minivan, Mini SUV and many more. So,

there are some cars that come under passenger vehicles or used as passenger vehicles.

Hindustan Motors, Calcutta – technical collaboration with Morris Motors to

manufacture Morris Oxford models that would later become HM Ambassador.

Addisons, Madras – An Amalgamations Group company, was the agent for Nuffield's

Morris, Wolseley, and Riley cars, and Chrysler's Plymouth, Dodge, and De Soto cars

and trucks. The first Morris Minor assembled in India and the first car assembled in

Madras was driven out from Addison's twin-plants on Smith Road by

Anantharamakrishnan on 15 November 1950. Premier Automobiles, Bombay –

technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto

models and with Fiat to manufacture the 1100D models which would later with

Premier Padmini range.

Standard Motor Products of India, Madras – technical collaboration from Standard-

Triumph to manufacture Standard Vanguard, Standard 8, 10 and later Standard

Herald.

Utility and Light Commercial Vehicles

Vehicle Factory Jabalpur – started manufacturing Jonga Light Utility Vehicles and

Vahan 1 Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan.

5
They were the main troop carriers of the Indian Armed Forces and much powerful

than any other vehicle of their class. Mahindra & Mahindra, Bombay – technical

collaboration with Willys to manufacture CJ Series Jeep. Bajaj Tempo, Pune, now

Force Motors – technical collaboration with Tempo (company) to manufacture

Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as

Tempo Matador in India. Standard Motor Products of India – technical collaboration

from Standard has licence to manufacture the Standard Atlas passenger van with

panel van and one-tonne one tonne pickup variants.

Medium and Heavy Commercial Vehicles

Commercial vehicles are used to transport heavy goods and other things for

commercial purpose, usually they include Trucks, Buses, Loaders, Big Containers

and more. Vehicle Factory Jabalpur – started manufacturing Shaktiman trucks with

technical assistance from MAN SE of Germany. The trucks were the main logistics

vehicle of the Indian Army with several specialist variants. VFJ still is the sole

supplier of B vehicles to the Indian Armed Forces. Heavy Vehicles Factory – was

established in 1965 in Avadi, Chennai to produce tanks in India. Since its inception,

HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma

and their variants for the Indian Army. HVF is the only tank manufacturing facility of

India.

Tata Motors, Pune, then known as TELCO – technical collaboration with Mercedes

Benz to manufacture medium to heavy commercial vehicles both Bus and Trucks.

Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland

Motors to manufacture medium to heavy commercial vehicles both Bus and Trucks.

6
Ashok Motors also discontinued its Austin venture formed in 1948 to sell Austin A40

and retooled the factory to make trucks and buses. Hindustan Motors – technical

collaboration with General Motors to manufacture the Bedford range of medium lorry

and bus chassis. Premier Automobiles – technical collaboration with Chrysler to

manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus

chassis. Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors) –

technical collaboration with Ford to manufacture medium lorry and bus chassis, but

did not utilise that option until the 1980s.

Scooters, Mopeds and Motorcycles

Many of the two-wheelers manufacturers were granted licenses in the early 1960s,

well after the tariff commission was enabled.

Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to

manufacture the Enfield Bullet range of motorcycles.

Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their

best selling Vespa range of scooters and three wheelers with commercial option as

well.

Automobile Products of India, Bombay (Better known for API Lambretta – technical

collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of

mopeds, scooters and three-wheelers. This company was actually the Rootes Group

car plant that was bought over by M. A. Chidambaram family.

Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France

to manufacture their best selling Mobylette mopeds.

7
Escorts Group, New Delhi – technical collaboration with CEKOP of Poland to

manufacture the Rajdoot 175 motorcycle whose origin was DKW RT 125

Ideal Jawa, Mysore – in technical collaboration with CZ - Jawa of Czechoslovakia for

its Jawa and Yezdi range of motorcycles.

The three segments of motorised two-wheelers are Motorcycles, Scooters and

Mopeds. The journey of the Indian Two-wheeler industry can be described briefly

based on the advancements in these segments. With such humble beginnings, during

the decade that led up to 1970, the two-wheeler industry received encouragement for

foreign Collaborations. The production was controlled by the government with

licensing, to meter the number of units being produced in the plants.

1.12 The Indian Two Wheeler Industry

The Indian two wheeler sector contributes the largest volumes amongst all the

segments in automobile Industry. Though the segment can be broadly categorized in

to 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced

in the market are a combination of two or more segments e.g. scooter and step thru.

The market primarily comprises five players in the two wheeler segment with most of

the companies having foreign collaborations with well known Japanese firms earlier,

but most of the companies now planning 100% subsidiaries in India.

Previously, there were only a handful of two-wheeler models available in the country.

Currently, India is the second largest producer of two-wheelers in the world. It stands

next only to China and Japan in terms of the number of two-wheelers produced and

the sales of two-wheelers respectively. In the year 2018-2019, the annual production

of two-wheelers in India stood at around 21,181,390 units.

8
 The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of

the chief factors is poor public transport in many parts of India. Additionally, two-

wheelers offer a great deal of convenience and mobility for the Indian family.

Currently, the motorcycle market is witnessing a demand for higher volume engines.

Previously, the 100 c bikes were very popular owning to the high fuel efficiency

offered. However, the market is maturing fast.

Two-wheeler sector consists of the following segments:

1. Motorcycle

2. Scooter

3. Mopeds

Scooter

The scooter has been the fastest growing segment in India two-wheeler sector

at 15% CAGR form 2012-2019. Consequently, the share of Scooters in the domestic

two-wheeler sector has increased from 19% in 2012 to 32% in 2019 and is further.

However the year on year domestic sales of scooter fell in 2019 and possibly the fall

can be contributed to increased cost of ownership of two-wheelers (mandatory

insurance related regulations), absence of festive schemes by OEMs (facing high

commodity price pressures), tight liquidity conditions for NBFCs (financiers)and

muted demand sentiments in urban areas.

This is a highly concentrated market, top 3 players accounted for nearly 86% market

share in 2018. (Honda – 57%, Hero – 13% and TVS – 16%)

Scooter segment is further divided on the basis of engine capacity as “<90 cc (TVS

Pep+)”, “90-125 cc (ACtive, Dio)” and “125-150 cc (Vespa, Aprilia)”.

9
90-125 CC is the largest segment in Scooters. It accounts for nearly 97% of scooters

sold in Q4 of FY2019.

The share of the scooter in the overall exports of two-wheeler has continuously

increased (currently stands at 11% of total). The exports of scooters from India is

predominantly to Sri Lanka forming nearly 73% of total scooters exported from

India.

Motorcycle

In 2019 motorcycles reported industry-leading growth, beating the scooters segment

after many years and inching up their share in the two-wheeler pie after several years

of losing share to scooters.

The market for motorcycle is concentrated, the top 3 players accounted for 83% of

the motorcycle market in 2018. (Hero – 52%, Bajaj – 16%, Honda – 15%)

Motorcycle segment extremely critical in terms of two-wheelers ecosystem. Below

graph just depicts that.

Chart No. 1.2: Market Share of Motorcycle Segment

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Mopeds

Mopeds are a two-wheeled vehicle with an engine of less than 50cc

capacity. Mopeds, registered tremendous growth during the 2016-17 fiscal, on the

launch of XL100, a four-stroke superior vehicle at a marginal price hike. This helped

the moped segment clocked a strong growth on-year. Barring that mopeds segment

don’t grow too much.

TVS is the only manufacturer of mopeds, Bajaj, hero and other small makers exited

this segment.

Tamil Nadu and Andhra Pradesh are the two states accounting for the lion’s share of

the overall moped market in India.

Chart No. 1.3: Market Share of Motorcycle, scooter and Mopeds

The major players in the Indian two-wheeler sector accounting for 93% of domestic

market share are

i. Hero Motocorp Limited (HMCL)

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 ii. Bajaj Auto Limited (BAL)

iii. TVS motor company limited

iv. Eicher motors limited

v. Honda Motorcycle and Scooter India Private. Ltd (HMSI)

vi. Suzuki

vii. Yamaha

viii. KTM

ix. Royal Enfield

x. Piaggio, Vespa, Moto Guzzi and Aprilia

xi. Kawasaki

xii. Benelli

xiii. Ducati

xiv. MV Augusta

xv. Hyosung

xvi. Triumph

xvii. Harley Davidson

xviii. Mahindra Bikes

Table No. 1.1 : Market share of various Automobile companies

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HERO MOTOCORP LIMITED (HMCL)

Fill it. Shut it. Forget it

Hero Motocorp Limited, is an Indian motorcycle and scooter manufacturer based in,

New Delhi, India. The company is the largest two-wheeler manufacturer in the

world and also in India, where it has a market share of about 46% in the two-wheeler

category. Hero Honda started its operations in 1984 as a joint venture between Hero

Cycles of India and Honda of Japan. In 2010, when Honda decided to move out of the

joint venture, Hero Group bought the shares held by Honda, and focused on it’s

entirely owned subsidiary, Honda Motorcycle and Scooter India (HMSI).

"Hero" is the brand name used by the Munjal brothers for their flagship company,

Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor

Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera,

India. Munjal family and Honda group both owned 26% stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for

their fuel economy and low cost. A popular advertising campaign based on the slogan

'Fill it – Shut it – Forget it' that emphasized the motorcycle's fuel efficiency helped

the company grow at a double-digit pace since inception. In 2001, the company

became the second largest two-wheeler manufacturing company in India and

globally. With over 85 million satisfied customers across the globe, Hero MotoCorp
13
continues to champion socio-economic progress and empowerment through its range

of products and services.

Led by Dr Pawan Munjal, Chairman, Hero MotoCorp , it has taken rapid strides to

expand its presence to 37 countries across Asia, Africa, and South & Central

America. Hero MotoCorp is a truly global enterprise with a workforce that comprises

of people from different nationalities including India, Bangladesh, Colombia,

Germany, Austria, Japan, and France.

Hero MotoCorp is the dominant market leader in India – the world’s largest two-

wheeler market – with over 50% share in the domestic motorcycle market.

The name of the company was changed from Hero Honda Motors Limited to Hero

MotoCorp Limited on 29 July 2011.

Size of Organization

With turnover of Rs. 3,385 Crore, Hero Motocorp Group has the big market share in

the Industry. In terms of manpower, the company employs 8551 as permanent

employee and 22992 of employees hired on temporary/ contractual/casual basis,

Number of permanent women employees is 279, Number of permanent employees

with disabilities is 57 and Number of employees (permanent/temporary/

contractual/casual basis) with disabilities is 6.

Market Share in the Industry

Hero Motocorp leading the industry with manufacturing of 6,893,688 units in FY19,

where other companies like Bajaj Auto and HMSI manufactured 2,541,320 and

1,840,214 respectively. Hero Motocorp has largest share in the market.

14
 Table No. 1.2: Market Share of Hero MotoCorp (India)

Geographical And Functional Area

Hero Motocorp Ltd. is an Indian manufacturing firm producing motorcycles and

scooters. the New Delhi (India) headquartered Hero MotoCorp has been at the

forefront of designing and developing technologically advanced motorcycles and

scooters for customers around the world. It became the world’s largest two-wheeler

manufacturer in 2001, in terms of unit volume sales in a calendar year, and has

maintained the coveted title for the past 18 consecutive years. They have taken rapid

strides to expand its presence to 37 countries across Asia ( India, Myanmar,

Bangladesh, Nepal, Sri lanka), Africa( Angola, Egypt, Ethiopia Ghana, Guinea, Iran,

Ivory Coast, Kenya, Libya, Nigeria, UAE etc.) , and South & Central

America(Argentina Tanzania Ethiopia Ghana Turkey Uganda United Arab Angola

Democratic Republic Of Congo Burkina Faso Egypt Bolivia El Salvador Honduras

Panama Colombia Costa Rica). Hero MotoCorp is a truly global enterprise with a

workforce that comprises of people from different nationalities including India,

Bangladesh, Colombia, Germany, Austria, Japan, and France.

15
They are producing at Gurgaon, Haryana, Dharuhera, Haryana, Haridwar,

Uttarakhand, Neemrana, Rajasthan Vadodara, Gujarat Villa Rica, Colombia Global

Parts Centre (GPC), Neemrana, Rajasthan Centre of Innovation and Technology

(CIT) Jaipur, Rajasthan. It is reported that Hero MotoCorp has five joint ventures or

associate companies, Munjal Showa, AG Industries, Sunbeam Auto, Rockman

Industries and Satyam Auto Components, that supply a majority of its components.

The Company's growth in the two wheeler market in India is the result of an intrinsic

ability to increase reach in new geographies and growth markets. Hero MotoCorp's

extensive sales and service network now spans over to 6000 customer touch points.

These comprise a mix of authorized dealerships, service & spare parts outlets, and

dealer-appointed outlets across the country.

They are involved in Manufacturing, Engineering, Spares, R&D, Sales& Distribution,

Export Business.

Present Leadership

(A) Mr. Niranjan Gupta (Chief Financial Officer)

(B) Mr. Vikram Kasbekar (Executive Director Operations (Plants))

(c) Mr. Vijay Sethi (Chief Information Officer, Chief Human Resources Officer &

Head Corporate Social Responsibility)

(D) Dr. Markus Braunsperger (Chief Technology Officer )

(E) Mr. Neeraj Mathur (Vice President - Strategic Sourcing & Supply Chain

Management )

(F) Mr. Sanjay Bhan (Head - Sales & After Sales)

(G) Mr. Rajat Bhargava (Head Of Strategy & Performance Transformation And

16
 Global Business )

(H) Mr. Malo Le Masson (Head - Global Product Planning)

(I) Ms. Neerja Sharma (Company Secretary, Chief Compliance Officer & Head -

Legal)

Company’s Vision & Mission

Vision

The story of Hero Honda began with a simple vision - the vision of a mobile and an

empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new

identity, reflects its commitment towards providing world class mobility solutions with

renewed focus on expanding company's footprint in the global arena.

Mission

Hero MotoCorp 's mission is to become a global enterprise fulfilling its customers' needs

and aspirations for mobility, setting benchmarks in technology, styling and quality so that

it converts its customers into its brand advocates. The company will provide an engaging

environment for its people to perform to their true potential. It will continue its focus on

value creation and enduring relationships with its partners.

Core Value

Integrity

Adherence to ethical and moral principles

Humility

Absence of arrogance, open mind towards absorbing new ideas, innovations and learning

Excellence through Teamwork

Persistence and striving towards perfections in all our actions, products and services

17
Speed

Responsiveness in all our actions; ability to execute, implement strategies

Respect

Towards elders, seniors; everything worthy in the material, spiritual and the intellectual

world; towards systems, processes and values.

Product Range

i. Achiever Xtreme Sports

ii. Splendor Passion Pro I3s

iii. Ismart 110 Karizma Zmr

iv. Maestro Edge Hf Deluxe

v. Duet

vi. Pleasure

vii. New Glamour

viii. Maestro

ix. Xpulse

Turnover

Hero Motocorp reported a revenue of Rs.6997 crore, PAT grows by 14% to Rs.880 crore

in 3 rd quarter of 2020. The company reported a 14.5 percent growth in its December

quarter profit at Rs 880 crore versus Rs 769.1 crore in October-December of 2018.

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BAJAJ AUTO LIMITED (BAL)

Bajaj Auto was established on 29 November 1945 as M/s Bachraj Trading Corporation

Private Limited. It started off by selling imported two- and three-wheelers in India. In

1959, it obtained a license from the Government of India to manufacture two-wheelers

and three-wheelers and obtained License from piaggio to manufacture vespa Brand

Scooters in India and started making vespa 150 scooters. It became a public limited

company in 1960. In 1970, it rolled out its 1,00,000th vehicle.In 1977, it sold 1,00,000

vehicles in a financial year. In 1985, it started producing at Waluj near Aurangabad. In

1986, it sold 5,00,000 vehicles in a financial year. In 1995, it rolled out its ten millionth

vehicle and produced and sold 10 lakh(one million) vehicles in a year.

With the launch of motorcycles in 1986, the company has changed its image from a

scooter manufacturer to a two-wheeler manufacturer.

In 2017 it was announced that Bajaj Auto and Triumph motorcycle limited would form

an alliance to build mid-capacity motorcycles.

According to the authors of Globality: Competing with Everyone from Everywhere for

Everything, Bajaj has operations in 50 countries creating a line of bikes targeted to the

preferences of entry-level buyers.

19
26 November 2019 Bajaj Auto invested $8 million (approx. ₹57 crore) in bicycle and

electric scooter rental startup Yulu. In this deal, Bajaj will also manufacture customized

electric scooter for Yulu.

Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-

largest in India. It is the world's largest three-wheeler manufacturer.

On May 2015, its market capitalisation was ₹640 billion (US$9.0 billion), making it

India's 23rd largest publicly traded company by market value. The Forbes Global 2000

list for the year 2012 ranked Bajaj Auto at 1,416.

TURNOVER

Total turnover grew by 18.5% to Rs. 31,899 crore — the Company’s highest ever.

Coming on the back of 15.1% growth in FY2018, the industry’s domestic sale and

exports of motorcycles further increased by 9.1% in FY2019 to 16.47 million units. This

could not be said of the sale of other two-wheelers, mostly comprising ungeared scooters

— where domestic sale plus exports grew by a mere 1.1% to 8.0 million units

Total domestic sales of all motorcycles grew by 7.8% to almost 13.6 million units l Bajaj

Auto’s sales increased by 28.7% to over 2.5 million units l Consequently, Bajaj Auto’s

share in the domestic motorcycles market increased by 3 percentage points to 18.7%.

Total exports of motorcycles increased by 15.4% to over 2.86 million units l Bajaj Auto’s

sales went up by 21.6% to almost 1.7 million units l As a result, the Company’s share in

total exports of motorcycles grew by 3 percentage points to 59.2%. In US dollars,

revenue from exports grew by over 20% to US$ 1.6 billion.

Market Share
20
Motorcycle manufacturer Bajaj Auto, which has recorded a scorching pace of growth,

both in domestic and exports markets, has led the domestic two-wheeler market share

charge in the recently-ended FY2019. With sales of 2,541,320 motorcycles in FY2019,

which marks robust 28.70 percent year-on-year growth, the Pune-based manufacturer has

increased its two-wheeler market share from 9.78 percent in FY2018 to 12 percent in

FY2019. This 2.22 percentage-point increase is the highest by a two-wheeler OEM in

FY2019.

Geographical & Functional Area

Bajaj Auto Ltd. is an Indian manufacturing firm dealing in manufacturing and selling of 2

wheelers and 3 wheelers for commercial transport use. They have a production facility set

up in India and export there products to 70+ countries like from Latin America, Africa,

Middle East, South and South East Asia and a significant share of revenues come from

Exports. , Manufacturing TPM (The Prime Mover) has now been extended to our seven

distributors plants in the export market. Bajaj Auto Limited has three plants in India: One

In Waluj, one in Chakan in Maharashtra and one in Pant Nagar in Uttaranchal. Also there

are Four distributor plants — in Colombia, Argentina, Egypt and Kenya — have

achieved good results, with their manpower productivity, production efficiency.

Functions like R&D, manufacturing, engineering, spares, service and materials have

redefined their KPIs and are working towards meeting these to achieve the next level of

operational parameters and business goals. Bajaj Auto’s ‘back end’ consists of its

manufacturing, engineering, development and materials functions.

Size Of Organization

Bajaj Auto had a total of 8,036 employees as of 31 March 2013, of which 51 were

women (0.63%) and 25 were differently-abled (0.31%).[29] It spent ₹6.5 billion (US$91

21
million) on employee benefit expenses during the FY 2012–13. The company is headed

by Rahul Bajaj, whose net worth was around US$2 billion in March 2013. As on 31

March 2019, BAL’s employee strength stood at 10,258.

Product Range

Motorcycles

i. Avenger 220 Cruise Desert Gold Edition

ii. Avenger 220 street

iii. CT100B

iv. Dominar 400

v. Discover 1

vi. Pulsar 150

vii. Pulsar 180 and 180f

viii. Pulsar 220F

ix. V15

Three Wheelers

i. RE Compact

ii. RE Optima

iii. RE Maxima

Four Wheelers

i. Qute

22
Scooters

i.Bajaj chetak electric scooter

Present Leadership

Table No. 1.3: Present Leadership of Bajaj Auto Limited

Name Designation

Abraham Joseph Chief Technology Officer

Anami Roy Director

D J Balaji Rao Director

Eric Vas President

Gita Piramal Director

J Sridhar Co. Secretary & Compl. Officer

J Sridhar Secretary

K S Grihapathy Senior Vice President

Lila Poonawalla Independent Director

Madhur Bajaj Vice Chairman

Naushad Forbes Director

Niraj Bajaj Director

Omkar Goswami Director

Pradeep Shrivastava Executive Director

Pradip Shah Independent Director

R C Maheshwari President

23
Rahul Bajaj Chairman

Rajiv Bajaj CEO

Rajiv Bajaj Managing Director

Rakesh Sharma Executive Director

Ravi Kyran Ramasamy President – HR

S Ravikumar President

Sanjiv Bajaj Director

Sarang Kanade President

Shekhar Bajaj Director

Soumen Ray Chief Financial Officer

Company’s Vision & Mission

Vision

To attain world class Excellency by demonstrating value added products to customers.

Mission

i. Focus on Value based manufacturing.

ii. Continual Improvement

iii. Total elimination of wastes.

iv. Pollution free and safe environment.

1.2 Objectives:

1.21 To Study the Comparative analysis of Financial Statement of Two-Wheeler

Companies.

24
1.22 To analyze the liquidity, Profitability and solvency performance of selected Two-

wheeler companies.

1.23 To study the profile and growth of selected automobile companies.

1.3 Scope of Study:

To collect and analyse the financial data of two major two-wheeler automobile

companies in India of last fifteen years. For this purpose secondary data from the

published sources is collected. The Study is limited to the past 15 years of data of 2 major

companies because of the shortage of time.

1.4 Methodology:

1.41 Methodology used for Data Collection: The data of HMCL& Bajaj Auto Limited

brands of two wheeler vehicle is collected from their Annual Financial Statements for

various periods.

1.42 Methodology used for Data Analysis: T-Test is used to analyze the data. A t-

test is a type of inferential statistic used to determine if there is a significant

difference between the means of two groups, which may be related in certain

features. The t-test is one of many tests used for the purpose of hypothesis testing in

statistics.

1.5 Hypothesis:

H01: There is no significant difference between the values of current ratio and quick ratio

among the selected Two Wheeler companies.

25
Ha1: There is significant difference between the values of current ratio and quick ratio

among the selected Two Wheeler companies.

H02: There is no significant difference between Return on Equity, Return on Assets,

Return on Capital Employed and Earning per Share of selected Two-wheeler companies.

Ha2: There is significant difference between Return on Equity, Return on Assets, Return

on Capital Employed and Earning per Share of selected Two-wheeler companies.

H03: There is no significant difference between Proprietary Ratio and Sales to Asset

Ratio of selected Two-wheeler companies.

Ha3: There is significant difference between Proprietary Ratio and Sales to Asset Ratio of

selected Two-wheeler companies.

26
 Chapter-2: Literature Review

A literature review is a survey of scholarly sources that provides an overview of a

particular topic. It generally follows a discussion of the paper's thesis statement or

the study's goals or purpose. A literature review provides foundation of knowledge on

topic. It identifies the areas of prior scholarship to prevent duplication and give credit to

other researchers. It helps the researchers in identifying the theoretical framework and

methodological issues relevant to the study. It provides the proper direction to carry out

the research work and enables the researcher to arrive at meaningful results.

Many researchers have been conducted research but due to shortage of time and

resources only past 15 researches paper’s review has been discussed in this chapter.

Yasodha D., Nayana K., & Dhaksina M. (2020) A Study on Fashion Brands -Adidas

and Puma. The study is to analyze the comparative profitability of both companies which

provides valuable information to the management for decision making. The study is

based on the secondary data. Data related to the fashion industries are taken from the

annual report of the selected brands in this websites. The tool used for the study is Ratio

Analysis. The study observed that the operational and financial position of Adidas is

satisfactory when compared to Puma.

Agarwal & Gupta (2018) the main idea behind the study was to analyse the automobile

industry. The ratios were grouped into four categories - solvency, liquidity, efficiency

and profitability. Five companies in the automobile industry were considered which are

27
Hero Moto Corp Limited, Bajaj Auto Limited, Tata Motors Limited, TVS Motor

Company Limited, Maruti Suzuki India Limited. The time period taken for conducting

the study was of 5 years from 2012 to 2017. The output of the analysis was used as

industry benchmarks and to analyse any peculiarities in the financial trends of the

companies. The study was conducted to understand the concept of Financial Analysis, to

understand financial position of selected companies in the automobile sector on the basis

of key ratios, to compare how different companies have been performing over a span of

five years (intra- firm analysis), to compare their performance with respect to each other

(inter-firm analysis). It was observed that that Bajaj Auto Ltd. has been performing best

over the years among all its competitors in terms of liquidity, solvency, efficiency and

profitability. It is followed by Hero Moto Corp, Maruti Suzuki, TVS Motors and Tata

Motors (in order). However TVS Motors has performed better than Hero Moto Corp and

Maruti Suzuki in terms of liquidity.

Dr. Kanagavalli & R. Saroja Devi (2018) the paper measures the financial performance

of major selected automobile companies for the period of 5 years from 2013-2017 by

using ratio analysis. The purpose of the study is to evaluate and compare the financial

performance of selected three companies to rate their financial performances. The aim of

the study is to analyze by comparing the risk of different companies, on their strengths

and weaknesses. The aim of the study is to examine the past and current financial data so

that a company‟s performance and financial position can be measured and evaluated and

future risks and potential can be estimated. This study is concerned with the financial

performance of selected automobile companies. Financial Performance measures whether

the company‟s strategy and its implementation and execution are effectively contributing

28
towards Profitability, Liquidity, Efficiency and Solvency so that the business can be

carried out smoothly ensuring success, growth and bottom line improvement. The

proposed study is entirely based on secondary data. The Companies are selected on the

basis of top two wheelers and three wheelers Manufacturers. The researcher has selected

three Automobile companies on the basis of availability of data for the post five years.

This sample has been selected for the proposed research. The companies selected for the

study are Hero Motocorp Limited, Bajaj Auto Limited and TVS Motor Company

Limited. The period of study that has been taken for the research is five years i.e. from

the financial year 2012-2013 to 2016-2017.

Yadav (2018) With the help of this study, author wants to represent whether there is any

association between capital structure and profitability or not. Objectives of the study were

to examine capital structure of selected samples and to examine profitability of selected

sample through different ratios. This study also reveals that what is the effect of capital

structure on profitability. Capital Structure refers to the way a corporation finances its

assets through some combination of equity, debt, or hybrid securities. Capital Structure

shows how a company's assets are built out of debt and equity. It is how a firm finances

its overall processes and growth by using different sources of funds whereas Profitability

is the capacity of a business to earn a profit. A profit is what is left of the revenue a

business generates after it pays all expenses directly related to the generation of the

revenue, such as producing a product, and other expenses related to the conduct of the

business' activities. Scope of this study is limited to the extent of critically examine the

capital structure independently, analyzing profitability in context of capital structure and

29
identifying possibility of association between capital structure and profitability. In this

study researcher selected 8 automobile companies subject to availability of data for the

study. This research study is mainly based on secondary data. So, researcher has selected

8 automobile companies. The data concerning selected sample have been got and

composed from the annual report of the businesses and related websites. For the analysis

of the capital structure and profitability, some important ratios are used in-order to check

the effect of capital structure on profitability, statistical tool like ANOVA used.

Christina (2017) carried out the study on Financial Performance of Wheels India

Limited-Chennai. The researcher carried out the study with the objective of finding out

the financial performance of Wheels India Ltd, Chennai for the financial year 2005-2009.

The researcher is interested in finding out the major factors that determine the financial

performance of the organization. The researcher carried out the study with Analytical

type of research design in the study with the help of secondary data collection method.

For this purpose the researcher took past 5years balance sheet into consideration. The

data is checked out for the validity and reliability before conducting the study. The

researcher used the following financial tool namely ratio analysis, comparative balance

sheet and DuPont analysis and also statistical tools such as trend analysis and correlation.

The study reveals that the financial performance is satisfactory. Ratios help to summarize

large quantities of financial data to make quantitative judgment about the financial

performance of the firm s. Profitability ratios indicate there is a decrease in the profit

level, utilization of fixed assets and working capital in the last financial year. Thus the

company can take necessary steps to improve sales and profit. This paper introduced a

new approach for performance evaluation DuPont Analysis. The major contribution of

30
this paper is the use of Five Power Analysis methodology to retrieve ratios most

commonly used in financial analysis to tackle the problems of sample size and

distribution uncertainty. This could avoid the waste of resources due to the uncertainty of

relations among the ratios when using them for analysis.

Mathur & Agarwal (2016) undertook this study, to analyze the financial position of the

selected automobile companies for last three years (2012-2014). The researcher has

selected 2 automobile companies in India which are Maruti Suzuki and Tata Motors. The

study is based on secondary data. Financial position is analysed by using different ratios.

The study was conducted to understand the concept of financial analysis, to ascertain

financial position of selected companies on the basis key ratios / parameters and to

compare the financial performance of both the companies through inter firm and intra

firm analysis. From the study, position of Maruti Suzuki & Tata Motors is ascertained.

The result of study showed that the net sales of Maruti Suzuki are higher than net sales of

Tata motors. The gross profit of Maruti Suzuki is higher than Tata Motors. In Maruti

Suzuki the proportion of debt is lower as compared to Tata Motors. The earning per share

of Maruti Suzuki is more than Tata Motors which shows Maruti Suzuki is earning more.

In short Maruti Suzuki Is better than Tata Motors in all aspects.

Hiran (2016) undertook this study to discussed the impact of liquidity ratio i.e. current

ratio, quick ratio and inventory turnover ratio on measure of profitability i.e. operating

profit ratio, net profit ratio and return on net worth and also discussed the impact of

leverage ratio i.e. degree of operating leverage, degree of financial leverage and

combined leverage on such measures of profitability of companies under study. For such

31
analysis data for the period of five years 2011 to 2015, of 25 Indian automobile

companies out of 29 companies which is part of CNX500 Index of NSE, was collected .

For data analysis mean, median, standard deviation as descriptive statistics & correlation,

regression, ANOVA, test of significance as inferential statistics is used with the help of

statistical package for social science (SPSS). Objectives of the research was to study the

relationship between liquidity and profitability of the 25 companies operates in Indian

Automobile Sector formulate CNX500 Index and to study the relationship between

leverage and profitability of the 25 companies operates in Indian Automobile Sector

formulate CNX500 Index. In order to achieve the objectives and test the hypothesis of

this study, data are collected from secondary sources i.e. Annual report of companies

under study which is published by respective companies and available on its official

website and website of NSE & Indiabulls.com. On the basis of result obtained from such

statistical techniques it is found that inventory turnover ratio is negative association with

operating profit, quick ratio is positive association with operating profit & net profit

while current ratio has negative relation with net profit. Further, this study highlighted

that except combined leverage both operating and financial leverage has significant and

negative relation with profitability in case of Indian automobile companies under study.

Gupta (2015) Public sector banks and private sector banks is dominant player which

have important role in growth of Indian economy. The Present research paper aimed to

examine and compare the financial performance of selected public and private sector

banks in India during 2009-10 to 2013-14. Data of public sector banks (Bank of Baroda,

Punjab National Bank, Central bank of India) and private sector banks (ICICI bank,

HDFC bank, Axis bank) for 5 years, has been collected from their official sites and

32
annual report. This study is primarily based on secondary data and financial ratios are

used. Some selected variables like Assets, Net profit, Interest expand, interest income,

deposits are taken to known the financial positions of selected banks. The study found

that overall performances of private sector banks are better than public sector banks.

Khedkar (2015) discussed in his paper the relationship between financial leverage and

return on investment, operating leverage and return on investment and combined leverage

and return on investment for Dr Reddy’s Laboratories taking data for the financial year

2013-14 and observed that degree of operating leverage is significant & negatively

correlated with return on investments, the degree of financial leverage and combined

leverage is positive but not significant association with return on investments and

suggested to Dr Reddy‟s Laboratories to revise its capital structure which should include

the optimum blend of equity and borrowed funds so that it has positive impact on Return

on Investment.

Shrabanti Pal (2015) discussed in her paper about the situation of Automobile industry.

The study aims at reducing the number of financial ratios which could able to portrait the

actual financial standing of Indian automobile industry and exploring the individual

variables which affect the profitability of the concerned industry by applying factor

analysis and multiple regression analysis during the study period. Factor analysis is

applied in the study on 36 audited financial ratios grouped in 7 categories for a period of

15 years since 1999-2000 to 2013-2014. Multiple regression analysis shows that three

individual variables working capital to total assets, inventory turnover ratio and dividend

payout ratio to cash profit have significant effect on the profitability factor of the

concerned industry.

33
Ms. Tiwari (2013) attempt the study to examine the trends of profitability of two leading

Indian automobile two-wheeler companies namely Hero Honda Motors Ltd( which is

now known as Hero MotoCorp Ltd.) and Bajaj Auto Ltd during the period of five years

i.e. from 2005-06 to 2009-10. The main objective of present study is to examine the

trends of profitability of two leading Indian automobile two-wheeler companies.

Secondary data collected from the published annual reports of the sample companies are

used in the study. Trends and ratio analysis techniques of profitability are used. To know

the impact of trading on equity, relationship between debt-equity ratio, dividend per share

and earning per share has been worked out. The findings of the study reveal that the

ratios of the Hero Honda Motors Ltd is better than that of the Bajaj Auto Ltd.On the

whole, it may be concluded that the profitability of both the selected companies are

satisfactory, but Hero MotoCorp Ltd is more effective in its performance that to Bajaj

Auto Ltd.

Dharmaraj & Dr.Kathirvel (2013) the main idea behind this study is to analyse the

financial performance of the Automobile industry India and to offer suggestions for the

improvement of the profitability of the Automobile companies. The study is based on

secondary data. The data were collected from the official directory and database of CMIE

namely PROWESS. Statistical tools are applied to analyze the financial performance with

help of ratios analysis. Descriptive statistical tools like Mean and Standard Deviation

were used to test the hypothesis. The ratios considered for the study are Current ratio,

Fixed Assets Turnover, Inventory turnover, Debtors Turnover, Debt-Equity ratio, Long

term Debt- Equity ratio, Return on Net worth and Interest Coverage Ratio The study

34
covers a period of fifteen years covering a period from 1998-1999 to 2011 -2012.

Researcher selected only 15 Indian automobile companies to see to what extent they are

profitable, financially strength, and liquidity position. The study provides companies with

understanding the activities that would enhance their financial performances. The results

of this study imply that, In India there is a huge scope for automobile companies. They

are financially strong and they are growing at the rate of 17% per annum and contributing

to the Indian economy reasonably. Finally, the study provides companies with

understanding of the activities that would enhance their financial performances. The

results of this study imply that it might be necessary for all companies to take all required

decisions to enhance their financial position.

Dr. Zafar & S.M.Khalid (2012) the purpose of the study is to analyse the performance

of two Indian automobile companies Maruti Suzuki and Tata Motors on the basis of their

financial ratios, further their SD and CV, the Sum of Mean Values and Average score are

calculated. The study was undertaken by the author to understand and analyze qualitative

and quantitative performance of Maruti &Tata company and to investigate their risk and

returns factors, their market position, their collective impact on profitability and to come

up with the best and worst performing company by using modern performance evaluating

techniques and later ranking them according to their achieved performance. The study is

done with special reference to two most preferred and trusted Indian private sector

company “they are Maruti Suzuki Ltd. and Tata Motors Ltd. For the purpose secondary

data are used by researcher for the period of 2006-2010 and the data for the same have

been collected by the researcher from the published reports, magazines, annual report and

websites of the companies. In this study, for interpreting the results modern financial

35
analysis have been carried out which minutely evaluates and examine relevant

components for companies smooth functioning ‘like’ Liquidity Analysis in which Current

Ratio, Liquidity Ratio are tested, in Profitability Analysis in Relation to Sales G. P Ratio,

N. P Ratio, O. P Ratio are tested and in Relation to Investment Return on Equity, Return

on Assets, Return on Investment are tested, in Efficiency Analysis: Fixed Assets

Turnover Ratio, Stock Turnover Ratio etc are tested. The study concluded that Maruti

have better strategic position in comparison to its competitor in all the respective ratios. It

indicates that share price of Maruti and Tata will move up if certain strategic correction

might carried out in the market.

Salman and Qamar (2011) Financial analysis is useful for every business entity to

enhance their performance, competitive strength and access their financial stability and

profitability of the firm. This paper investigates the financial analysis of the two

Multinational companies, GlaxoSmithKline (GSK) and Sanofi Aventis (SA) and an

attempt to compare their financial performance by using ratio analysis. Data is drawn

from pharmaceutical industry in Pakistan from financial year 2005 to 2009. Analysis of

variance (ANOVA) and statistical hypothesis test (t-Test) with independent sample

characteristics was analysed through Statistical Package for the Social Sciences (SPSS).

The results comparison with this method between two pharmaceutical companies is

presented. It is revealed that the performance of both companies in the observed period

has improved. The current method reflects that GlaxoSmithKline is leading Sanofi

Aventis.

S. Christina Sheela, K. Karthikeyan (2012) This study attempts basically to measure

the financial performance of the Pharmaceutical Industry taking top three companies like

36
Cipla, Dr. Reddy’s Laboratories, Ranbaxy for the period 2003-2012. In order to achieve

our goals in this paper we have measured the ratios of ROE, ROA applying the

DuPont analyses, which have been demonstrated with the aim of tables to show the

change periodically. DuPont analysis (ROI and ROE)) is an important tool for judging

the operating financial performance. It is an indication of the earning power of the firm.

DuPont Model which is based on analysis of Return on Equity (ROE) & Return on

Investment (ROI). The return on equity disaggregates performance into three

components: Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Return

on Investment consists of Assets Turnover and Profit Margin. The return on investment

consists of Assets Turnover (Operating Income X Total Assets) and Profit Margin (EBIT

X Operating Income).From the study it if found that Cipla pharmaceutical Financial

performance is high followed by Dr.Reddy’s Laboratories and then Ranbaxy

Pharmaceutical. The three companies are significant at their level. In conclusion, ROE &

ROI is the most comprehensive measure of profitability of a firm. It considers the

operating and investing decisions made as well as the financing and tax-related decisions

37
 Chapter-3: Data Presentation& Analysis

3.1 Data Collection Method

The process of data collection begins after a research problem has been defined and

research design has been chalked out. There are two types of data –

i. Primary Data –

It is first hand data, which is collected by researcher itself. Primary data is collected by

various approaches so as to get a precise, accurate, realistic and relevant data. The main

tool in gathering primary data was investigation and observation. It was achieved by a

direct approach and observation from the officials of the company.

ii. Secondary Data –

It is the data which is already collected by someone else. Researcher has to analyze the

data and interprets the results. It has always been important for the completion of any

report. It provides reliable, suitable, adequate and specific knowledge.

3.11 Type of Data Used In the Study

The required data for the study are basically secondary in nature and the data are

collected from

i. The audited reports of the company.

ii.INTERNET – which includes required financial data collected form Hero MotoCorp’s

official website i.e., www.heromotocorp.com and from Bajaj Auto Limited official

website i.e., www.bajajauto.com some other websites on the internet are used for the

38
 purpose of getting all the required financial data of the company and to get detailed

knowledge about Hero MotoCorp and Bajaj Auto Limited for the convenience of

study.

3.12 Methods of data analysis

The data collected will be edited, classified and tabulated for analysis. The analytical

tools used in this study are:

Analytical Tools Applied:

The study employs the following analytical tools:

1. Ratio Analysis.

2. T-test

Universe of study:

In statistical sense the term “Universe” means the aggregate of persons or object under

study. For the present study, an attempt has been made to evaluate and compare the

financial performance of two major companies which are Hero MotoCorp Limited and

Bajaj Auto. The universe of study is Hero MotoCorp and Bajaj Auto Limited, which

represents the motorcycle companies in India.

Sample Size:

10 years financial data of Hero MotoCorp limited and Bajaj Auto Limited

39
Period of study:

The study covers the period of 10 years i.e. from year 2010 to year 2020

3.2 Data Presentation:

3.21 Liquidity Performance of Selected Automobile Companies

To check the liquidity performance of the companies I have selected two liquidity ratios

Current Ratio and Quick Ratio. Liquidity ratios are an important class of financial metrics

used to determine a debtor's ability to pay off current debt obligations without raising

external capital. Liquidity ratios determine a company's ability to cover short-term

obligations and cash flows, while solvency ratios are concerned with a longer-term ability

to pay ongoing debts.

a) Current Ratio

An indication of a company's ability to meet short-term debt obligations; the higher the

ratio, the more liquid the company is. Current ratio is equal to current assets divided by

current liabilities. If the current assets of a company are more than twice the current

liabilities, then that company is generally considered to have good short-term financial

strength. If current liabilities exceed current assets, then the company may have problems

meeting its short-term obligations.

Current Assets
Current Ratio = Current Liability

b) Quick Ratio

The Quick Ratio, also known as the Acid-test or Liquidity ratio, measures the ability of a

business to pay its short-term liabilities by having assets that are readily convertible into

40
cash. These assets are, namely, cash, Marketable Securities and Accounts Receivables.

These assets are known as “quick” assets since they can quickly be converted into cash.

Total Quick Assets

Quick Ratio = Total Current Liabilities

Quick Assets = Total Current Assets – Inventory

Table No. 3.1: Current Ratio and Quick Ratio of HMCL & BAL from FY 2009-10

to 2018-19

Hero MotoCorp Limited Bajaj Auto Limited

Year Current Ratio Quick Ratio Current Ratio Quick Ratio

2010 0.6 0.51 0.68 0.98

2011 0.96 0.87 0.79 0.64

2012 1.11 0.96 1.12 0.58

2013 1.22 1.06 1.5 1.35

2014 1.26 1.1 1.19 1.05

2015 0.94 1.15 2.13 1.95

2016 0.83 1.3 1.7 1.44

2017 0.86 1.66 2.92 2.72

2018 0.85 1.85 2.25 2.07

2019 1.36 1.71 1.45 1.25

41
 3.5

2.5

2 Current Ratio
(HMCL)
Quick Ratio
1.5 (HMCL)
Current Ratio
(BAL)
1 Quick Ratio
(BAL)
0.5

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart No. 3.1: Current Ratio and Quick Ratio of HMCL & BAL from FY 2009-10

to 2018-19

3.22 Profitability of Selected Automobile Companies

To check the profitability of the companies I am using Profitability ratios. Profitability

ratio is used to evaluate the company’s ability to generate income as compared to its

expenses and other cost associated with the generation of income during a particular

period. This ratio represents the final result of the company.

Profitability represents final performance of company i.e. how profitable company. it also

represents how profitable owner’s funds have been utilized in the company.

To check the profitability of the companies I have selected four profitability ratios these

are:

42
 i. Return on Equity

ii. Earnings Per Share

iii. Return on Capital Employed

iv. Return on Assets

a) Return on Equity

This ratio measures Profitability of equity fund invested the company. It also measures

how profitably owner’s funds have been utilized to generate company’s revenues. A high

ratio represents better the company is.

Profit after Tax

Return on Equity =
Net worth

Where,

Net worth = Equity share capital, and Reserve and Surplus

b) Earnings per Share

This ratio measures profitability from the point of view of the ordinary shareholder. A

high ratio represents better the company is.

𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭
Earnings per Share =
𝐓𝐨𝐭𝐚𝐥 𝐧𝐨 𝐨𝐟 𝐬𝐡𝐚𝐫𝐞𝐬 𝐨𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠

Table No. 3.2: ROE and EPS of HMCL & BAL from FY 2009-10 to 2018-19

Hero MotoCorp Limited Bajaj Auto Limited

Year Return on Earning Per Return on Earning Per

Equity (%) Share (Rs.) Equity (%) Share (Rs.)

43
2010 64.41 111.76 58.05 117.51

2011 65.21 100.53 68.01 115.4

2012 55.43 119.09 49.72 103.8

2013 42.31 106.07 38.51 105.2

2014 37.66 105.61 33.75 112.1

2015 36.47 119.46 26.31 97.2

2016 39.42 156.86 29.62 135.8

2017 33.39 169.12 22.46 132.3

2018 31.41 185.14 21.29 140.6

2019 26.32 169.48 21.46 161.6

200

180

160

140

120 Return on Equity (HMCL)

100 Earning Per Share (HMCL)

80 Return on Equity (BAL)

60 Earning Per Share (BAL)

40

20

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart No. 3.2: ROE and EPS of HMCL & BAL from FY 2009-10 to 2018-19

44
 c) Return on Capital Employed

This ratio computes percentage return in the company on the funds invested in the

business by its owners. A high ratio represents better the company is.

Net Operating Profit

Return on Capital Employed = × 100
Capital Employed

Capital Employed = Equity share capital, Reserve and Surplus, Debentures and long-

term Loans

Capital Employed = Total Assets – Current Liability

d) Return on Assets

This ratio measures the earning per rupee of assets invested in the company. A high ratio

represents better the company is.

Net Profit
Return on Assets =
Total Asset𝒔

Table No. 3.3: ROCE and ROA of HMCL & BAL from FY 2009-10 to 2018-19

Hero MotoCorp Limited Bajaj Auto Limited

Year Return on Return on Return on Return on Assets

Capital Assets (%) Capital Employed (%)
Employed (%) (%)
2010 60.45 26.18 38.24 19.46

2011 40.93 17.97 61.93 36.11

45
2012 42.86 24.04 46.53 27.1

2013 38.71 21.96 36.47 24.39

2014 37.16 20.88 32.37 21.99

2015 35.93 22.67 25.38 18.08

2016 37.77 25.38 28.67 23.83

2017 44 22.98 30.32 18.38

2018 42.35 22.08 29.5 17.07

2019 37.15 19.18 28.28 17.07

70

60

50 Return on Capital
Employed (HMCL)
40 Return on Assets (HMCL)

30 Return on Capital
Employed (BAL)
20
Return on Assets (BAL)

10

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart No. 3.3: ROCE and ROA of HMCL & BAL from FY 2009-10 to 2018-19

3.2.3 Solvency Performance of Selected Automobile Companies

To check the solvency performance of the companies I have selected two solvency ratios

Proprietary Ratio and Sales to Total Assets Ratio.

46
Solvency ratios also known as leverage ratios. It measures the ability of a company to pay

its long-term debt and the interest on that debt. Solvency ratios, as a part of financial ratio

analysis, help the business owner determine the chances of the firm's long-term survival.

a) Proprietary Ratio

The proprietary ratio or equity ratio expresses the relationship between the proprietor’s

funds, i.e. the funds of all the shareholders and the capital employed or the net assets. This

ratio shows the comparison between owners funds and total capital or net assets. The ratio is

as follows,

Shareholders′ funds
Proprietary Ratio =
Total Assets

b) Sales to Total Assets Ratio

The sales to total assets ratio measures the ability of a business to generate sales on as

small a base of assets as possible. When the ratio is quite high, it implies that

management is able to wring the most possible use out of a small investment in assets.

Net Sales
Sales to total assets ratio =
Total Assets

47
Table No. 3.4: Proprietary Ratio and Sales to Total Assets Ratio of HMCL & BAL

from FY 2009-10 to 2018-19

Hero MotoCorp Limited Bajaj Auto Limited

Year Proprietary Sales to Total Proprietary Ratio Sales to Total

Ratio Assets Ratio Assets Ratio
2010 0.41 1.86 0.34 1.39

2011 0.28 1.81 0.53 1.53

2012 0.43 2.38 0.55 1.97

2013 0.52 2.47 0.63 2.07

2014 0.55 2.5 0.65 2

2015 0.62 2.62 0.69 2.05

2016 0.64 2.32 0.8 1.83

2017 0.69 1.94 0.82 1.48

2018 0.7 1.93 0.8 1.5

2019 0.73 1.91 0.8 1.71

48
 3

2.5

Proprietary Ratio
2
(HMCL)
Sales to Total Assets
1.5
Ratio (HMCL)
Proprietary Ratio (BAL)
1

Sales to Total Assets

0.5
Ratio (BAL)

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart No. 3.4: Proprietary Ratio and Sales to Total Assets Ratio of HMCL & BAL

from FY 2009-10 to 2018-19

3.3 Data Analysis:

H01: There is no significant difference between the values of current ratio and quick

ratio among the selected Two Wheeler companies.

Ha1: There is significant difference between the values of current ratio and quick

ratio among the selected Two Wheeler companies.

a) T-Test of Current Ratio:

Table No. 3.5: Comparative analysis of Current ratio of HMCL & BAL

Comparative analysis of Current ratio of HMCL & BAL

COMPANY N Mean Std. Std. Error
Deviation Mean

49
 CURRENT HERO 10 0.9990 0.23426 0.07408
RATIO OF MOTOCORP
HMCL AND
BAL BAJAJ AUTO 10 1.5730 0.69778 0.22066

Table No. 3.6: Independent T-Test of Current ratio of HMCL & BAL

Independent Samples T- Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
95% Confidence
Std. Interval of the
Sig. Error Difference
(2- Mean Differe
F Sig. t df tailed) Difference nce Lower Upper

Equal 7.016 0.016 -2.466 18 0.024 -0.57400 0.23276 -1.06301 -0.08499

CURRENT variances
RATIO OF assumed
HMCL
AND BAL
Equal -2.466 11.003 0.031 -0.57400 0.23276 -1.08628 -0.06172
variances
not
assumed
Significance: 5%

Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. Low value of significance (i.e. .016) associated with

levene’s test indicates that two groups have unequal variances. Therefore the statistic

associated with unequal variances assumed should be used for the t test for equality of

means. The p value here is 0.031 which is lower than 0.05. Therefore we reject

50
 hypothesis (H01) and accept alternate hypothesis (Ha1) which means there is significant

difference between Current Ratio of HMCL and BAL.

b) T-Test of Quick Ratio:

Table No. 3.7: Comparative analysis of Quick ratio of HMCL & BAL

Comparative analysis of Quick ratio of HMCL & BAL

COMPANY N Mean Std. Std. Error

Deviation Mean

QUICK HERO 10 1.2170 0.41846 0.13233

RATIO OF MOTOCORP
HMCL
AND BAL BAJAJ AUTO 10 1.4030 0.67241 0.21263

Table No. 3.8: Independent T-Test of Quick ratio of HMCL & BAL

Independent Samples T- Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
95% Confidence
Interval of the
Sig. Difference
(2- Mean Std. Error
F Sig. t df tailed) Difference Difference Lower Upper

QUICK Equal 1.577 0.225 -0.743 18 0.467 -0.18600 0.25045 -0.71217 0.34017
RATIO variances
OF assumed
HMCL
AND Equal -0.743 15.062 0.469 -0.18600 0.25045 -0.71963 0.34763
BAL variances
not
assumed
Significance value-5%

51
Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. High value of significance (i.e. .225) associated with

levene’s test indicates that two groups have equal variances. Therefore the statistic

associated with equal variances assumed should be used for the t test for equality of

means. The p value here is 0.467 which is higher than 0.05. Therefore we reject

hypothesis (Ha1) and accept null hypothesis (H01) which means there is no significant

difference between Quick Ratio of HMCL and BAL.

H02: There is no significant difference between Return on Equity, Return on Assets,

Return on Capital Employed and Earning per Share of selected Two-wheeler

companies.

Ha2: There is significant difference between Return on Equity, Return on Assets,

Return on Capital Employed and Earning per Share of selected Two-wheeler

companies.

c) T-Test of Return on Equity:

Table No. 3.9: Comparative analysis of ROE of HMCL & BAL

Comparative analysis of Return of Equity of HMCL & BAL

Std. Error
COMPANY N Mean Std. Deviation Mean

52
 HERO 10 43.2030 13.72393 4.33989
ROE OF MOTOCORP
HMCL
AND BAL
BAJAJ AUTO 10 36.9180 16.49156 5.21509

Table No. 3.10: Independent T-Test of ROE of HMCL & BAL

Independent Samples Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
Std. 95% Confidence
Sig. Error Interval of the
(2- Mean Differen Difference
F Sig. t df tailed) Difference ce Lower Upper

Equal 0.395 0.538 0.926 18 0.367 6.28500 6.78467 -7.96907 20.53907

variances
ROE assumed
OF
HMCL
AND Equal 0.926 17.425 0.367 6.28500 6.78467 -8.00286 20.57286
BAL variances
not
assumed
Significance value-5%

Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. High value of significance (i.e. .538) associated with

levene’s test indicates that two groups have equal variances. Therefore the statistic

associated with equal variances assumed should be used for the t test for equality of

means. The p value here is 0.367 which is higher than 0.05. Therefore we reject alternate

53
 hypothesis (Ha2) and accept null hypothesis (H02) which means there is no significant

difference between Return on Equity of HMCL and BAL.

d) T-Test of Earning per Share:

Table No. 3.11: Comparative analysis of Earning Per Share of HMCL & BAL

Comparative analysis of Earning Per Share of HMCL & BAL

Std. Error
COMPANY N Mean Std. Deviation Mean
HERO 10 134.3120 32.08289 10.14550
EPS OF MOTOCORP
HMCL
AND BAL BAJAJ AUTO 10 122.1510 20.00187 6.32515

Table No. 3.12: Independent T-Test of Earning Per Share of HMCL & BAL

Independent Samples T- Test

Levene's Test
for Equality
of Variances t-test for Equality of Means
Std. 95% Confidence
Error Interval of the
Sig. (2- Mean Differenc Difference
F Sig. t df tailed) Difference e Lower Upper
6.930 0.017 1.017 18 0.323 12.16100 11.95569 -12.95698 37.27898
Equal
variances
EPS assumed
OF
HMCL 1.017 15.078 0.325 12.16100 11.95569 -13.31048 37.63248
AND Equal
BAL variances
not
assumed
Significance value-5%

54
 Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. Low value of significance (i.e. .017) associated with

levene’s test indicates that two groups have unequal variances. Therefore the statistic

associated with unequal variances assumed should be used for the t test for equality of

means. The p value here is 0.325 which is higher than 0.05. Therefore we reject alternate

hypothesis (Ha2) and accept null hypothesis (H02) which means there is no significant

difference between Earning per Share of HMCL and BAL.

e) T-Test of Return On Capital Employed:

Table No. 3.13: Comparative analysis of Return of Capital Employed of

HMCL & BAL

Comparative analysis of Return of Capital Employed of HMCL & BAL

Std. Error
COMPANY N Mean Std. Deviation Mean
10 41.7310 7.13517 2.25634
HERO
ROCE OF MOTOCORP
HMCL
AND BAL 10 35.7690 11.06422 3.49881
BAJAJ AUTO

Table No. 3.14: Independent T-Test of Return on Capital Employed of HMCL &

BAL

Independent Samples T-Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means

55
 95% Confidence
Std. Interval of the
Error Difference
Sig. (2- Mean Differen
F Sig. t Df tailed) Difference ce Lower Upper
Equal 1.527 0.232 1.432 18 0.169 5.96200 4.16326 -2.78469 14.70869
ROCE variances
OF assumed
HMCL Equal 1.432 15.382 0.172 5.96200 4.16326 -2.89263 14.81663
AND variances
BAL not
assumed
Significance value-5%

Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. High value of significance (i.e. .232) associated with

levene’s test indicates that two groups have equal variances. Therefore the statistic

associated with equal variances assumed should be used for the t test for equality of

means. The p value here is 0.169 which is higher than 0.05. Therefore we reject alternate

hypothesis (Ha2) and accept null hypothesis (H02) which means there is no significant

difference between Return on Capital Employed of HMCL and BAL.

f) T-Test of Return of Assets:

Table No. 3.15: Comparative analysis of Return of Assets of HMCL & BAL

Comparative analysis of Return of Assets of HMCL & BAL

Std.
Std. Error
COMPANY N Mean Deviation Mean
ROA OF 10 22.3320 2.55650 0.80844
HMCL HERO MOTOCORP
AND 10 22.3480 5.93000 1.87523
BAL BAJAJ AUTO

56
 Table No. 3.16: Independent T-Test of Return on Assets of HMCL & BAL

Independent Samples T-Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
95% Confidence
Std. Interval of the
Error Difference
Sig. (2- Mean Differe
F Sig. t Df tailed) Difference nce Lower Upper
Equal 3.867 0.065 - 18 0.994 -0.01600 2.04207 -4.30624 4.27424
variances 0.008
ROA assumed
OF
HMCL Equal - 12.234 0.994 -0.01600 2.04207 -4.45588 4.42388
AND variances 0.008
BAL not
assumed
Significance value-5%

Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. High value of significance (i.e. .065) associated with

levene’s test indicates that two groups have equal variances. Therefore the statistic

associated with equal variances assumed should be used for the t test for equality of

means. The p value here is 0.994 which is higher than 0.05. Therefore we reject alternate

hypothesis (Ha2) and accept null hypothesis (H02) which means there is no significant

difference between Return on Assets of HMCL and BAL.

57
 H03: There is no significant difference between Proprietary Ratio and Sales to Asset

Ratio of selected Two-wheeler companies.

Ha3: There is significant difference between Proprietary Ratio and Sales to Asset

Ratio of selected Two-wheeler companies.

g) T-Test of Proprietary Ratio:

Table No. 3.17: Comparative analysis of Proprietary Ratio of HMCL & BAL

Comparative analysis of Proprietary Ratio of HMCL & BAL

COMPANY N Mean Std. Std. Error

Deviation Mean
PROPRIETARY HERO 10 0.5570 0.14712 0.04652
RATIO OF HMCL & MOTOCORP
BAL
BAJAJ AUTO 10 0.6610 0.15552 0.04918

Table No. 3.18: Independent T-Test of Proprietary Ratio of HMCL & BAL

Independent Samples T-Test

Levene's Test t-test for Equality of Means
for Equality
of Variances
F Sig. T df Sig. Mean Std. 95% Confidence
(2- Difference Error Interval of the
tailed Differen Difference
) ce Lower Upper
Equal 0.003 0.958 -1.536 18 0.142 -0.10400 0.06770 -0.24623 0.03823
PROPRIE variances
TARY assumed
RATIO Equal -1.536 17.945 0.142 -0.10400 0.06770 -0.24626 0.03826
OF HMCL variances
& BAL not
assumed
Significance value-5%

58
Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. High value of significance (i.e. .958) associated with

levene’s test indicates that two groups have equal variances. Therefore the statistic

associated with equal variances assumed should be used for the t test for equality of

means. The p value here is 0.142 which is higher than 0.05. Therefore we reject alternate

hypothesis (Ha3) and accept null hypothesis (H03) which means there is no significant

difference between Proprietary Ratio of HMCL and BAL.

h) T-Test of Sales to Total Assets Ratio:

Table No. 3.19: Comparative analysis of Sales to Total Assets Ratio of HMCL &

BAL

Comparative analysis of Sales to Total Assets Ratio of HMCL & BAL

Std. Std. Error
COMPANY N Mean Deviation Mean
SALES TO HERO 10 2.1740 0.31121 0.09841
TOTAL MOTOCORP
ASSETS BAJAJ AUTO 10 1.7530 0.26344 0.08331
RATIO OF
HMCL &
BAL

Table No. 3.20: Independent -Test of Sales to Total Assets Ratio of HMCL & BAL

Independent Samples Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means

59
 95% Confidence
Std.
Interval of the
Sig. Error
Difference
(2- Mean Differen
F Sig. T Df tailed) Difference ce Lower Upper
Equal 1.620 0.219 3.265 18 0.004 0.42100 0.12894 0.15011 0.69189
SALES variances
TO assumed
TOTAL
ASSETS Equal 3.265 17.522 0.004 0.42100 0.12894 0.14958 0.69242
RATIO variances
OF not
HMCL assumed
& BAL

Significance value-5%

Interpretation:

The levene’s test tells us which statistic to consider. It test null hypothesis that the two

groups have equal variances. High value of significance (i.e. .219) associated with

levene’s test indicates that two groups have equal variances. Therefore the statistic

associated with equal variances assumed should be used for the t test for equality of

means. The p value here is 0.004 which is lower than 0.05. Therefore we reject null

hypothesis (H03) and accept alternate hypothesis (Ha3) which means there is significant

difference between Sales to Total Assets Ratio of HMCL and BAL.

60
 Chapter-4: Summary & Conclusions

4.1 Findings of the Study:

4.11 Liquidity Performance

The Current Ratio and Quick Ratio of Bajaj Auto is the highest among the both

companies which indicates that it efficiently meets its short term obligations by use of

working capital and the short term creditors feel secured for the repayment by the

company.

4.12 Profitability Performance

The Return on Equity, Return on Capital Employed, Return on Assets and Earning per

Share of Hero MotoCorp is the higher than Bajaj Auto which indicates that company has

better profitability position and in future it can be a better or attractive channel of

investment for shareholders.

4.13 Solvency Performance

Proprietary Ratio of Bajaj Auto is higher than Hero MotoCorp which indicates that Bajaj

Auto has a strong financial position and greater security for creditors. Sales to total assets

ratio of Hero MotoCorp is higher than that of Bajaj Auto which indicates that Bajaj Auto

is experiencing poor sales or that its fixed assets are not being utilized to their full

capacity.

61
4.2 Limitations:

Each study cannot be free from limitations. Some limitations likewise, the limitation of

time, areas, economic, efforts, scope as well as the method of the study. Some limitations

for present research work are as under:

1. The study is confined to only two companies i.e. Hero MotoCorp Ltd and Bajaj

Auto Ltd.

2. The study is confined to only auto industry i.e. two wheeler industry, and the size

of both the companies were nearly the same

3. The secondary data, which used for this study is based on annual reports of the

selected companies. The quality of this research depends on quality and reliability

of data published in annual reports of the companies.

4. The study is limited to ten years (2010 to 2019) only.

5. There are different methods to measure the profitability of the Companies. View

of expert can be different in this matter from one another.

6. The present study is largely based on ratio analysis; such analysis has its own

limitation, which also applies to the study.

4.3 Suggestions& Scope for further Study:

The study has many limitations in spite of the limitations, further studies may be

undertaken to confirm the findings by including more sample companies of different

segments, size, the countries and the time period.

62
 Chapter-5: Recommendations

The short term liquidity position of Bajaj Auto is quite satisfactory as per revealed by

Quick ratio and the current ratio as compared to Hero MotoCorp. So Hero MotoCorp

should make efforts to increase its current assets to maintain a safety margin and to

maintain a better liquidity position.

Sales to total assets ratio of Hero MotoCorp is higher than that of Bajaj Auto which

means Bajaj Auto is experiencing poor sale as compare to Hero MotoCorp. So, Bajaj

Auto Should improves such situation by taking necessary measures. It can introduce

some new and attractive schemes for public which helps in increasing the sales.

Proprietary Ratio of Bajaj Auto is higher than Hero MotoCorp which means that Bajaj

Auto has a strong financial position and greater security for creditors as compared to

Hero MotoCorp. So, Hero MotoCorp should increase its focus on internal equities and

other sources of internal financing.

Earning per share (EPS) of Bajaj Auto is very low when compared to Hero MotoCorp.

Therefore, the Bajaj Auto should take some measures to increase income over

expenditure for increasing Earning per Share.

The profitability performance of Hero MotoCorp is better than Bajaj Auto. If we take

Return on Equity for for comparison Bajaj Auto lags behind the Hero MotoCorp. So,

Bajaj Auto may increase its profit margin or can use more financial leverage to improve

its Return on Equity.

63
 Bibliography

References:

1. Shivam Mathur and Krati Agarwal, “Financial analysis of automobile industries

(A comparative study of Tata Motors and Maruti Suzuki)”. International Journal

of Applied Research, Volume: 2, Issue 9, August 2016, Pp 533-539.

2. Zafar Tariq, “A Comparative Evaluation of Financial Performance of Maruti and

Tata Company”. Bookman International Journal of Accounts, Economics &

Business Management, Volume: 1, Issue 1, 2012.

3. Sanjay Hiran, “ Financial Performance Analysis of Indian Companies Belongs to

Automobile Industry with Special Reference to Liquidity & Leverage”.

International Journal of Multidisciplinary and Current Research, Volume: 4,

January 2016.

4. Salman, Asma and Qamar Romella, (2011), “Financial Indicators for Growth

Performance: Comparison of Pharmaceutical Firms in Pakistan”, 2010

International Conference on Business and Economics Research, Vol. 1, IACSIT

Press, Kuala Lumpur, Malaysia, pp. 286-290.

5. Sheela, C.S. and Karthikeyan. K (2012). Financial Performance of Pharmaceutical

Industry in India using DuPont Analysis. European Journal of Business and

Management. Vol 4, No.14.

64
 6. Shrabanti Pal, “Evaluation of Financial Performance In Terms Of Financial

Ratios- An Empirical Study On Indian Automobile Industry”. International

Journal of Business Management & Research (IJBMR), Volume:5, Issue 3, June

2015.

7. Pillai, R.S. N. and Bahavathi, „Management Accounting‟, (New Delhi: S.Chand

and Company Ltd).

8. Ghanshyam Chand Yadav, “Capital Structure and Profitability – A Comparative

Study Between Automobile Companies In India”. Abhinav Publication, Volume:

7, Issue 1, January 2018.

9. Dharmaraj, A. and Kathirvel, N, “Analysing the Financial Performance of

Selected Indian Automobile Companies”. Global Research Analysis, Volume: 2,

Issue 4, April 2013, Pp 18-20.

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India”. International Journal of Applied Research, Volume: 4, Issue 7, June 2018,

Pp 150-162.

Newspaper

1. India Today

2. Indian Express

3. The Economic Times

65
 4. The Hindu

5. The Times of India

Websites

6. www.heromotocorp.com

7. www.bajaj.com

8. www.moneycontrol.com

9. www.equitymaster.com

10. https://scholar.google.co.in/

11. https://www.academia.edu/

66
 Appendix
Annexure 1

Balance Sheet of Hero Motocorp

BALANCE SHEET MAR 19 MAR 18 MAR 17 MAR 16 MAR 15

OF HERO
MOTOCORP (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 39.95 39.94 39.94 39.94 39.94

TOTAL SHARE 39.95 39.94 39.94 39.94 39.94

CAPITAL

Reserves and Surplus 12,817.17 11,728.94 10,071.35 7,904.81 6,501.39

TOTAL 12,817.17 11,728.94 10,071.35 7,904.81 6,501.39

RESERVES AND
SURPLUS

TOTAL 12,857.12 11,768.88 10,111.29 7,944.75 6,541.33

SHAREHOLDERS
FUNDS

67
NON-CURRENT
LIABILITIES

Long Term 0.00 0.00 0.00 0.00 0.00

Borrowings

Deferred Tax 536.51 511.66 414.34 227.79 0.00

Liabilities [Net]

Other Long Term 0.00 0.00 0.00 34.89 31.33

Liabilities

Long Term 117.20 114.94 75.30 84.44 65.62

Provisions

TOTAL NON- 653.71 626.60 489.64 347.12 96.95

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term 0.00 0.00 0.00 0.00 0.00

Borrowings

Trade Payables 3,355.28 3,318.81 3,247.27 2,766.88 2,841.87

Other Current 716.05 964.72 807.05 483.19 307.49

Liabilities

Short Term 59.03 59.79 39.01 798.75 734.06

Provisions

TOTAL 4,130.36 4,343.32 4,093.33 4,048.82 3,883.42

CURRENT
LIABILITIES

68
TOTAL CAPITAL 17,641.19 16,738.80 14,694.26 12,340.69 10,521.70
AND LIABILITIES

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 4,477.53 4,485.89 4,310.73 3,717.85 2,818.29

Intangible Assets 141.05 168.65 84.86 118.89 94.40

Capital Work-In- 360.67 203.78 270.72 288.34 712.55

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 5,160.44 4,972.93 4,860.64 4,442.14 3,625.24

Non-Current 2,801.51 1,934.08 1,349.00 1,019.36 863.78

Investments

Deferred Tax Assets 0.00 0.00 0.00 0.00 73.54

[Net]

Long Term Loans 59.96 45.68 48.36 870.42 616.82

And Advances

Other Non-Current 1,503.64 937.93 983.08 73.68 60.19

Assets

TOTAL NON- 9,525.55 7,890.62 7,241.08 6,405.60 5,239.57

CURRENT
ASSETS

CURRENT
ASSETS

69
Current Investments 3,167.10 5,591.12 4,540.85 3,247.01 2,290.33

Inventories 1,072.37 823.58 656.31 672.98 815.49

Trade Receivables 2,821.57 1,520.18 1,561.87 1,282.80 1,389.59

Cash And Cash 136.46 141.34 136.73 131.36 159.25

Equivalents

Short Term Loans 25.03 27.56 24.18 521.46 567.66

And Advances

OtherCurrentAssets 893.11 744.40 533.24 79.48 59.81

TOTAL 8,115.64 8,848.18 7,453.18 5,935.09 5,282.13

CURRENT
ASSETS

TOTAL ASSETS 17,641.19 16,738.80 14,694.26 12,340.69 10,521.70

OTHER
ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent 821.50 437.86 480.68 650.44 816.42

Liabilities

CIF VALUE OF
IMPORTS

Raw Materials 0.00 0.00 0.00 0.62 16.92

Stores, Spares And 1,620.58 0.00 0.00 0.00 0.00

70
Loose Tools

Trade/Other Goods 1,620.58 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 162.04 145.98

EXPENDITURE
IN FOREIGN
EXCHANGE

Expenditure In 228.27 252.19 215.23 272.30 403.57

Foreign Currency

REMITTANCES
IN FOREIGN
CURRENCIES
FOR DIVIDENDS

Dividend Remittance -- -- -- -- --
In Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

FOB Value Of -- -- -- 776.74 720.18

Goods

Other Earnings 832.01 737.64 581.35 1.42 1.49

BONUS DETAILS

Bonus Equity Share 23.96 23.96 23.96 23.96 23.96

Capital

NON-CURRENT

71
INVESTMENTS

Non-Current 257.60 279.02 288.11 486.06 615.34

Investments Quoted
Market Value

Non-Current 2,698.28 1,816.40 1,229.43 748.73 329.94

Investments
Unquoted Book
Value

CURRENT
INVESTMENTS

Current Investments 20.70 -- 123.08 303.23 346.01

Quoted Market
Value

Current Investments 3,146.42 5,591.12 4,419.80 2,987.22 1,984.33

Unquoted Book
Value

BALANCE SHEET MAR 14 MAR 13 MAR 12 MAR 11 MAR 10

OF HERO
MOTOCORP (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

72
SHAREHOLDER'S
FUNDS

Equity Share Capital 39.94 39.94 39.94 39.94 39.94

TOTAL SHARE 39.94 39.94 39.94 39.94 39.94

CAPITAL

Reserves and Surplus 5,559.93 4,966.30 4,249.89 2,916.12 3,425.08

TOTAL RESERVES 5,559.93 4,966.30 4,249.89 2,916.12 3,425.08

AND SURPLUS

TOTAL 5,599.87 5,006.24 4,289.83 2,956.06 3,465.02

SHAREHOLDERS
FUNDS

NON-CURRENT
LIABILITIES

Long Term 0.00 302.16 1,011.39 1,471.04 66.03

Borrowings

Deferred Tax 0.00 132.41 208.26 246.77 160.63

Liabilities [Net]

Other Long Term 24.45 0.00 0.00 0.00 0.00

Liabilities

Long Term Provisions 49.98 30.16 38.00 35.68 0.00

TOTAL NON- 74.43 464.73 1,257.65 1,753.49 226.66

CURRENT
LIABILITIES

CURRENT
LIABILITIES

73
Short Term 0.00 0.00 0.00 0.00 0.00
Borrowings

Trade Payables 2,290.59 1,873.34 2,293.17 2,073.30 1,111.44

Other Current 588.08 887.64 996.20 2,898.02 2,693.62

Liabilities

Short Term Provisions 1,544.33 1,409.70 1,052.07 1,045.39 1,026.35

TOTAL CURRENT 4,423.00 4,170.68 4,341.44 6,016.71 4,831.41

LIABILITIES

TOTAL CAPITAL 10,097.30 9,641.65 9,888.92 10,726.26 8,523.09

AND LIABILITIES

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 1,897.27 1,891.76 1,743.14 1,612.53 1,427.04

Intangible Assets 345.98 1,179.22 2,042.37 2,467.75 231.74

Capital Work-In- 854.11 62.09 38.84 49.96 48.14

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 3,097.36 3,133.07 3,824.35 4,130.24 1,706.92

Non-Current 812.88 614.47 673.96 465.46 3,925.71

Investments

Deferred Tax Assets 105.98 0.00 0.00 0.00 7.88

74
[Net]

Long Term Loans 477.39 780.06 533.64 342.29 0.00

And Advances

Other Non-Current 47.81 36.44 26.01 16.43 0.00

Assets

TOTAL NON- 4,541.42 4,564.04 5,057.96 4,954.42 5,640.51

CURRENT ASSETS

CURRENT ASSETS

Current Investments 3,275.89 3,009.36 3,290.30 4,663.29 0.00

Inventories 669.55 636.76 675.57 524.93 436.40

Trade Receivables 920.58 665.00 272.31 130.59 108.39

Cash And Cash 117.50 181.04 76.82 71.52 1,907.21

Equivalents

Short Term Loans 550.31 553.55 475.60 344.72 430.58

And Advances

OtherCurrentAssets 22.05 31.90 40.36 36.79 0.00

TOTAL CURRENT 5,555.88 5,077.61 4,830.96 5,771.84 2,882.58

ASSETS

TOTAL ASSETS 10,097.30 9,641.65 9,888.92 10,726.26 8,523.09

OTHER
ADDITIONAL
INFORMATION

75
CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 487.63 502.00 252.62 131.90 73.04

CIF VALUE OF
IMPORTS

Raw Materials 24.45 36.70 14.56 21.42 579.90

Stores, Spares And 0.00 0.00 0.00 0.00 0.00

Loose Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 226.67 106.09 84.03 63.32 44.83

EXPENDITURE IN
FOREIGN
EXCHANGE

Expenditure In 350.77 203.09 231.78 2,694.26 485.46

Foreign Currency

REMITTANCES IN
FOREIGN
CURRENCIES FOR
DIVIDENDS

Dividend Remittance -- -- -- 571.11 103.84

In Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

76
FOB Value Of Goods 465.54 620.24 598.64 444.23 337.27

Other Earnings 4.55 4.22 0.91 0.39 0.32

BONUS DETAILS

Bonus Equity Share 23.96 23.96 23.96 23.96 23.96

Capital

NON-CURRENT
INVESTMENTS

Non-Current 653.22 254.48 260.64 54.64 25.03

Investments Quoted
Market Value

Non-Current 229.59 62.25 409.72 410.00 3,900.68

Investments Unquoted
Book Value

CURRENT
INVESTMENTS

Current Investments 986.31 98.80 41.56 7.50 --

Quoted Market Value

Current Investments 2,351.11 2,057.55 3,249.79 4,655.91 --

Unquoted Book Value

77
BALANCE SHEET OF BAJAJ AUTO LTD.

BALANCE SHEET MAR 19 MAR 18 MAR 17 MAR 16 MAR 15

OF BAJAJ
AUTO (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 289.37 289.37 289.37 289.37 289.37

TOTAL SHARE 289.37 289.37 289.37 289.37 289.37

CAPITAL

Reserves and Surplus 21,490.53 18,814.49 16,744.76 12,977.18 10,402.78

TOTAL 21,490.53 18,814.49 16,744.76 12,977.18 10,402.78

RESERVES AND
SURPLUS

TOTAL 21,779.90 19,103.86 17,034.13 13,266.55 10,692.15

SHAREHOLDERS
FUNDS

NON-CURRENT
LIABILITIES

Long Term 0.00 0.00 0.00 0.00 111.77

Borrowings

Deferred Tax 542.66 323.42 313.62 202.80 141.58

Liabilities [Net]

78
Other Long Term 169.59 168.73 176.43 188.59 57.59
Liabilities

Long Term 14.56 112.19 78.13 47.57 82.44

Provisions

TOTAL NON- 726.81 604.34 568.18 438.96 393.38

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term 0.00 0.00 0.00 0.00 0.00

Borrowings

Trade Payables 3,786.73 3,244.32 2,235.73 2,027.04 1,799.75

Other Current 946.33 741.37 855.92 641.00 767.47

Liabilities

Short Term 140.62 125.60 120.93 112.95 1,909.57

Provisions

TOTAL 4,873.68 4,111.29 3,212.58 2,780.99 4,476.79

CURRENT
LIABILITIES

TOTAL CAPITAL 27,380.39 23,819.49 20,814.89 16,486.50 15,562.32

AND LIABILITIES

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 1,688.69 1,821.22 1,898.61 1,936.38 1,917.24

79
Intangible Assets 19.75 0.00 44.65 89.29 0.00

Capital Work-In- 11.54 11.15 10.64 26.89 101.72

Progress

Other Assets 55.50 57.11 58.53 60.43 0.00

FIXED ASSETS 1,811.96 1,934.80 2,043.96 2,138.34 2,172.18

Non-Current 17,582.88 11,822.89 8,681.39 8,940.65 3,352.76

Investments

Deferred Tax Assets 0.00 0.00 0.00 0.00 0.00

[Net]

Long Term Loans 31.63 30.64 29.74 29.47 511.07

And Advances

Other Non-Current 891.26 795.53 668.43 652.79 0.04

Assets

TOTAL NON- 20,317.73 14,583.86 11,423.52 11,761.25 6,036.05

CURRENT
ASSETS

CURRENT
ASSETS

Current Investments 1,576.48 5,765.41 6,050.08 1,319.94 5,800.56

Inventories 961.51 742.58 728.38 719.07 814.15

Trade Receivables 2,559.69 1,491.87 953.29 717.93 716.96

Cash And Cash 922.81 778.00 293.68 859.52 586.15

Equivalents

80
Short Term Loans 6.34 6.26 6.47 7.05 1,261.61
And Advances

OtherCurrentAssets 1,035.83 451.51 1,359.47 1,101.74 346.84

TOTAL 7,062.66 9,235.63 9,391.37 4,725.25 9,526.27

CURRENT
ASSETS

TOTAL ASSETS 27,380.39 23,819.49 20,814.89 16,486.50 15,562.32

OTHER
ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent 1,853.88 0.00 2,019.79 1,980.12 1,594.74

Liabilities

CIF VALUE OF
IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 14.27

Stores, Spares And 0.00 0.00 0.00 0.00 616.81

Loose Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 616.81

Capital Goods 0.00 0.00 0.00 0.00 25.47

81
EXPENDITURE
IN FOREIGN
EXCHANGE

Expenditure In 973.07 673.41 697.92 774.90 155.12

Foreign Currency

REMITTANCES
IN FOREIGN
CURRENCIES
FOR DIVIDENDS

Dividend Remittance -- -- -- -- --
In Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

FOB Value Of 11,434.23 9,281.46 7,336.49 9,404.68 9,410.42

Goods

Other Earnings -- -- -- -- 33.09

BONUS DETAILS

Bonus Equity Share 258.85 258.85 258.85 258.85 258.85

Capital

NON-CURRENT
INVESTMENTS

Non-Current -- 5,393.21 3,594.99 788.47 --

Investments Quoted
Market Value

Non-Current 11,203.40 12,198.87 11,149.49 9,472.12 2,855.97

82
Investments
Unquoted Book
Value

CURRENT
INVESTMENTS

Current Investments -- -- -- -- --
Quoted Market
Value

Current Investments 1,134.71 -- -- -- 738.88

Unquoted Book
Value

BALANCE SHEET MAR 14 MAR 13 MAR 12 MAR 11 MAR 10

OF BAJAJ
AUTO (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 289.37 289.37 289.37 289.37 144.68

TOTAL SHARE 289.37 289.37 289.37 289.37 144.68

CAPITAL

Reserves and Surplus 9,318.65 7,612.58 5,751.70 4,620.85 2,783.66

83
TOTAL 9,318.65 7,612.58 5,751.70 4,620.85 2,783.66
RESERVES AND
SURPLUS

TOTAL 9,608.02 7,901.95 6,041.07 4,910.22 2,928.34

SHAREHOLDERS
FUNDS

NON-CURRENT
LIABILITIES

Long Term 57.74 71.27 97.48 133.88 1,325.60

Borrowings

Deferred Tax 143.18 115.10 48.44 29.71 191.81

Liabilities [Net]

Other Long Term 87.43 122.06 157.07 193.71 0.00

Liabilities

Long Term 120.99 134.61 111.85 124.54 0.00

Provisions

TOTAL NON- 409.34 443.04 414.84 481.84 1,517.41

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term 0.00 0.00 0.00 157.84 12.98

Borrowings

Trade Payables 2,111.40 1,979.61 2,003.08 1,789.26 1,571.20

Other Current 766.14 546.16 559.04 477.11 455.05

Liabilities

84
Short Term 1,852.70 1,607.86 2,063.04 1,431.26 2,248.72
Provisions

TOTAL CURRENT 4,730.24 4,133.63 4,625.16 3,855.47 4,287.95

LIABILITIES

TOTAL CAPITAL 14,747.60 12,478.62 11,081.07 9,247.53 8,733.70

AND LIABILITIES

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 2,006.04 1,804.43 1,479.59 1,478.43 1,479.59

Intangible Assets 0.00 0.00 2.14 4.28 0.00

Capital Work-In- 32.55 223.29 11.77 69.86 120.84

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 2,150.10 2,097.98 1,523.38 1,552.57 1,600.43

Non-Current 6,259.93 3,719.15 3,786.21 4,035.08 4,021.52

Investments

Deferred Tax Assets 0.00 0.00 0.00 0.00 190.12

[Net]

Long Term Loans 719.92 462.39 579.90 226.96 0.00

And Advances

Other Non-Current 1.02 1.02 1.43 401.77 0.00

Assets

85
TOTAL NON- 9,130.97 6,280.54 5,890.92 6,216.38 5,812.07
CURRENT ASSETS

CURRENT ASSETS

Current Investments 2,289.70 2,711.33 1,096.60 686.83 0.00

Inventories 639.72 636.28 678.53 547.28 446.21

Trade Receivables 796.21 767.58 422.79 359.89 272.84

Cash And Cash 495.48 558.86 1,653.83 228.78 101.41

Equivalents

Short Term Loans 978.45 1,311.72 1,042.81 992.09 2,101.17

And Advances

OtherCurrentAssets 417.07 212.31 295.59 216.28 0.00

TOTAL CURRENT 5,616.63 6,198.08 5,190.15 3,031.15 2,921.63

ASSETS

TOTAL ASSETS 14,747.60 12,478.62 11,081.07 9,247.53 8,733.70

OTHER
ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 1,170.58 1,252.99 1,445.67 959.66 818.25

CIF VALUE OF
IMPORTS

86
Raw Materials 37.24 38.17 115.70 109.27 284.92

Stores, Spares And 502.16 547.85 531.28 405.40 0.00

Loose Tools

Trade/Other Goods 502.16 547.85 531.28 405.40 0.00

Capital Goods 51.93 378.37 21.70 37.78 32.11

EXPENDITURE IN
FOREIGN
EXCHANGE

Expenditure In 100.09 93.64 338.67 279.97 142.11

Foreign Currency

REMITTANCES IN
FOREIGN
CURRENCIES
FOR DIVIDENDS

Dividend Remittance -- -- -- -- --
In Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

FOB Value Of Goods 7,931.46 6,508.27 6,449.18 4,450.45 3,245.82

Other Earnings 32.40 57.07 177.12 114.33 23.13

BONUS DETAILS

87
Bonus Equity Share 258.85 258.85 258.85 258.85 114.17
Capital

NON-CURRENT
INVESTMENTS

Non-Current 1,277.50 -- -- -- 1,484.81

Investments Quoted
Market Value

Non-Current 4,966.56 2,407.13 1,293.88 1,057.12 2,573.36

Investments
Unquoted Book
Value

CURRENT
INVESTMENTS

Current Investments -- -- -- -- --
Quoted Market Value

Current Investments 2,289.70 1,545.75 562.50 516.59 --

Unquoted Book
Value

88