Financial Statement Analysis

A STUDYON
FINANCIAL STATEMENT ANALYSIS AT SHRIRAM COMMERCIAL VEHICLE FINANCE

Submitted by:
BINTO.B
U S N: 1CD13MBA09
Submitted to:
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
In Partial Fulfillment of the Requirement for the Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE
EXTERNAL GUIDE
Mr. GNANENDRA.M
Mr. RAVI KUMAR
Asst. Professor-Dept. of MBA
Finance Manager
CITECH, Bangalore
Shriram commercial vehicle finance
CAMBRIDGE INSTITUTE OF TECHNOLOGY

K.R. PURAM, BANGALORE-36
(2013-2015)
ACKNOWLEDGEMENT
The project cannot be accomplished without the assistance and cooperation of several people. Hence I
hereby wish to express my sincere gratitude to all those who supported me throughout the study.
First and foremost I would like to thank with immense gratitude, MR. D. K. MOHAN, chairman; and
Dr. L. SURESH, Principal; &Dr. D. R. RAJ SHEKER SWAMY, Head of the Dept of Management
studies; CAMBRIDGE INSTITUTE OF TECHNOLOGY, BANGALORE for permitting me to
undertake this project work.
I am greatly thankful to my Internal Guide Mr. GNANENDRA.M, Assistant Professor in Department of
MBA; Cambridge Institute of Technology, Bangalore for his valuable time, guidance, co-operation &
support without which this report would have not been completed.
I also thank Mr. RAVI KUMAR, Finance Manager of Shriram Commercial Vehicle Finance for his
assistance, guidance & suggestion offered to me during the project and collection of necessary data by
imparting his knowledge and experience. I also thank the employees of company who have responded
me in completing the project.
Last but not least, mere acknowledgement may not redeem the debt I owe to my PARENTS FRIENDS
and well wishers for their wholehearted direct/indirect support which was a source of encouragement
during the entire course of this project.
Place: Bangalore
Date:
Name: BINTO B
USN: ICD13MBA09
Executive Summary
In any organization, the two important financial statements are the Balance Sheet and Profit & Loss
Account of the business. Balance Sheet is a statement of financial position of an enterprise at a particular
point of time. Profit & Loss account shows the net profit or net loss of a company for a specified period
of time. When these statements of the last few year of any organization are studied and analyzed,
significant conclusions may be arrived regarding the changes in the financial position, the important
policies followed and trends in profit and loss etc. Analysis and interpretation of financial statement has
now become an important technique of credit appraisal. The investors, financial experts, management
executives and the company all analyze these statements. Though the basic technique of appraisal
remains the same in all the cases but the approach and the emphasis in the analysis vary. A shriram
transport finance company limited interprets the financial statement so as to evaluate the financial
soundness and stability, the liquidity position and the profitability or the earning capacity of borrowing
concern. Analysis of financial statements is necessary because it helps in depicting the financial position
on the basis of past and current records. Analysis of financial statements helps in making the future
decisions and strategies. Therefore it is very necessary for every organization whether it is a financial or
manufacturing, to make financial statement and to analyze it.
The internship is a bridge between the institute and the organization. This made me to be involved in a
project that helped me to employ my theoretical knowledge about the myriad and fascinating facets of
finance. And in the process I could contribute substantially to the organizations growth. The experience
that I gathered over the past ten weeks has certainly provided the orientation, which I believe will help
me in shouldering any responsibility in future.
CONTENTS
SL.NO.
TITLE
INTRODUCTION
1.1 ABOUT THE INTERSHIP.
1.2 EVALUATION OF FINANCIAL POSITION
1.3 OPERATIONAL RESULTS..
1.4. FINANCIAL PROGRESS..
1.5 TOPIC...
1.6 NEED FOR THE STUDY
1.7 OBJECTIVES OF THE STUDY.
1.8 SCOPE OF THE STUDY
1.9 RESEARCH DESIGHN..
1.10 DATA COLLECTION METHOD
1.11 ANALYTICAL TOOLS APPLIED ..
1.12 REVIEW OF LITERATURE..
1.13 LIMITATIONS OF THE STUDY.
INDUSTRY PROFILE AND COMPANY PROFILE

2.1 INDUSTRIAL PROFILE
2.2 COMPANY PROFILE.
THEORETICAL FRAMEWOR
3.1 FINANCIAL ACCOUNTING
3.2 FINANCIAL STATEMENT..
3.3 LIMITATIONS OF FINANCIAL STATEMENT..
3.4EVALUATION AND INTERPRETATION OF FINANCIAL
STATEMENT.
3.5. TYPE OF ANALYSIS
3.6. TECHNIQUES/TOOLS OF FINANCIAL PERFORMANCE
ANALYSIS
ANALYSIS AND INTERPRETATION
4.1 COMPARITIVE FINANCIAL STATEMENT ANALYSIS..
4.2 COMMONSIZE FINANCIAL STATEMENT ANALYSIS...
4.3. TREND ANALYSIS..
4.4 RATIO ANALYSIS
4.5 DUPOINT ANALSIS
PAGE NO.
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SUMMERY OF FINDINGS
5.1 FINDINGS
5.2 SUGGESTIONS
5.3. CONCLUSION
74-77
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LIST OF TABLES
SL.NO.
TITLE
PAGE NO.
COMPARATIVE INCOME STATEMENTOF SHRIRAM

TRANSPORT COMPANY FOR THE YEAR ENDED
31.03.2012
37
COMPARATIVE BALANCE SHEET OF SHRIRAM

TRANSPORT COMPANY THE YEAR ENDED 31.03.2012
38
COMPARATIVE INCOME STATEMENTOF SHRIRAM

31.03.2014
39
COMPARATIVE BALANCE SHEET OF SHRIRAM

31.03.2014
41
COMMONSIZE INCOME STATEMENT OF SHRIRAM

31.03.2012
43
COMMONSIZE BALANCE SHEET OF SHRIRAM

TRANSPORT COMPANY THE YEAR ENDED 31.03.2012
44
COMMONSIZE INCOME STATEMENT OF SHRIRAM

31.03.2014
46
COMMONSIZE BALANCE SHEET OF SHRIRAM

31.03.2014
47
TREND ANALYSIS OF INCOME STATEMENT OF

SHRIRAM TRANSPORT COMPANY FOR THE YEAR
ENDED
10
49
50
TREND ANALYSIS OF BALANCE SHEET OF SHRIRAM

11
OPERATING PROFIT RATIO
52
12
NET PROFIT RATIO
54
13
CAPITAL TURNOVER RATIO
56
14
TOTAL ASSET TURN OVER RATIO
58
15
16
17
18
19
NET WORKING CAPITAL RATIO
DEBT TO TOTAL FUNDS RATIO
59
61
62
64
65
20
EQUITY TO TOTAL FUNDS
67
21
RETURN ON EQUITY
74
ABSOLUTE LIQUID RATIO

CURRENT RATIO
DEBT EQUITY RATIO
LIST OF GRAPHS
SL.NO.
TITLE
PAGE NO.
53
NET PROFIT RATIO
55
1
2
3
4

56
58
60

6
62
63
CURRENT RATIO
8
9
DEBT EQUITY RATIO

65
66
10
11
RETURN ON EQUITY
68
74
CHAPTER 1
INTRODUCTION
A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance
INTRODUCTION
1.1. ABOUT THE INTERSHIP

The internship aimed to make a awareness about the company, to give a practical knowledge about
the company. The period of internship is 10 weeks. The students need to work in the organization
and make a project to a topic relating to the particular specialization.
1.2. EVALUATION OF FINANCIAL POSITION
Finance is the life-blood of business. It is rightly termed as the science of money. Finance is very
essential for the smooth running of the business. Finance controls the policies, activities and
decision of every business. Finance is that business activity which is concerned with the
organization and conversation of capital funds in meeting financial needs and overall objectives of a
business enterprise.
1.3. OPERATIONAL RESULTS
Financial management is today recognized as the most important branch of business administration.
It is the part of management which is concerned mainly raising funds in the most economic and
suitable manner, using these funds as profitability as possible: planning future operation and control
current performance and future developments through financial accounting, budgeting, statistics and
other means. Financial management is that managerial activity which is concerned with the
planning and controlling of a firm financial reserve.
. Financial management has to take decisions in various fields involving financial matter such as
anew financing whether through shares or debentures or temporary borrowings through banks and
sources inventory management and capital budgeting. These decisions to be correct should be
based on some reliable information. There for analyzing the overall performance of a concern and
study the past and present information and financial records are essential in taking various
decisions.
Citech, Department of MBA
1.4. FINANCIAL PROGRESS

In short, the technique of financial analysis is typically developed to analyze the past, present and
projected performance of a business firm. For all these we need to study the relationship among
various financial variable in a business as disclosed in various financial statements. The analysis of
financial performance is an attempt to determine the significance and meaning of financial
statements data. Financial performance of an organization can be analyzed for different
requirements or for different objectives.
there are a number of people are interested in getting
information about the organization like managers, owners, creditors, employees, suppliers, and
other stakeholders. .
1.5TOPIC
STUDY
ON
FINANCIAL
STATEMENT
ANALYSIS
AT
SHRIRAM
COMMERCIAL VEHICLE FINANCE

1.6NEED FOR THE STUDY
The Financial Statements are mirror which reflects the financial position and strengths or
weakness of the concern. The Non- Banking Financial Company has been witnessed intense competition
from domestic banks and international banks. Every business needs to view the financial performance
analysis.
The study on effectiveness of operational and financial performance of Shriram commercial vehicle
finance is conducted to measure the overall performance of company. The financial analysis strengths
the firms to make their best use ,and to be able to spot out financial weakness of the firm to state suitable
corrective actions.
This study aims at analyzing the overall financial performance of the company by using various
financial tools like Comparative Analysis, common size statement analysis, Ratio Analysis, trend
analysis, and du point analysis.

1.7OBJECTIVES OF THE STUDY
o
o
o
o
o
To study the financial performance of Shriram Commercial Vehicle Finance.

To analysis the financial performances of different years through comparative statements.
To predict the profitability and growth prospects of Shriram Commercial Vehicle Finance.
To assess the operational efficiency of Shriram Commercial Vehicle Finance.
To study the liquidity and solvency position of Shriram Commercial Vehicle Finance.
1.8SCOPE OF THE STUDY

o Useful in financial Position Analysis of the Shriram Commercial Vehicle Finance.
o Useful in assessing the operational efficiency.
o It helps to know about the locating the weak spots of the Shriram Commercial Vehicle
Finance.
o To know about comparison of performance.
o Its helpful in simplifying accounting figures.
1.9RESEARCH DESIGHN
A research designs is the arrangement of conditions for collection and analysis data in a manner that
aims to combine relevance to the research purpose with economy in procedure. Research Design is the
conceptual structure with in which research in conducted. It constitutes the blueprint for the collection
measurement and analysis of data. Research Design includes and outline of what the researcher will do
form writing the hypothesis and it operational implication to the final analysis of data.
1.9.1RESEARCH DESIGN USED IN THE STUDY
Descriptive research design is used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected. Descriptive study is based on some previous understanding
of the topic. Research has got a very specific objective and clear cut data requirements The researcher
had to use fact and information already available through financial statements of earlier years and
analyze these to make critical evaluation of the available material. Hence by making the type of the
research conducted to be Analytical in nature. From the study, the type of data to be collected and the
procedure to be used for this purpose were decided.
1.10 DATA COLLECTION METHOD
SECONDARY DATA

Last five years financial statement of shriram commercial vehicle finance
1.11 ANALYTICAL TOOLS APPLIED:
1. Comparative statement.
2. Common size statement
3. Trend Percentage.
4. Ratio Analysis.
5. Dupoint Analysis.
1.12REVIEW OF LITERATURE
Literature Review was done by referring previous studies, articles and books to know the areas
of study and analyze the gap or study not done so far. There are various studies were conducted relating
to operational performance of the company from which most relevant literatures were reviewed.
Kennedy and Muller (1999),has explained that The analysis and interpretation of financial statements
are an attempt to determine the significance and meaning of financial statements data so that the forecast
may be made of the prospects for future earnings, ability to pay interest and debt maturates (both current
and long term) and profitability and sound dividend policy.
T.S.Reddy and Y. Hari Prasad Reddy (2009), have stated that The statement disclosing status of
investments is known as balance sheet and the statement showing the result is known as profit and loss
account
Peeler J. Patsula (2006), he define that a sound business analysis tells others a lot about good sense and
understanding of the difficulties that a company will face. We have to make sure that people know
exactly how we arrived to the final financial positions. We have to show the calculation but we have to
avoid anything that is too mathematical. A business performance analysis indicates the further growth
and the expansion. It gives a physiological advantage to the employees and also a planning advantage.

I.M.Pandey (2007), had stated that the financial statements contain information about the financial
consequences and sources and uses of financial resources, one should be able to say whether the
financial condition of a firm is good or bad; whether it is improving or deteriorating. One can relate the
financial variables given in financial statements in a meaningful way which will suggest the actions
which one may have to initiate to improve the firms financial condition.
1.13LIMITATIONS OF THE STUDY:
The study is restricted for a period of five years
Due to the inadequate time it is not possible to analyze all respects relevant to the study.
The analysis is based on annual reports of the company.
Authorities were reluctant to reveal full information about the working of the Company.
The data are collected mainly based on secondary data. So all the limitations of secondary data are
applicable.
CHAPTER - 2
INDUSTRY PROFILE AND COMPANY
PROFILE
2.1 INDUSTRIAL PROFILE


In the CV market availability of credit is a very important factor on which its performance depends. The
penetration of finance in this sector is around 90%. In the 1980s, concept of auto finance was restricted
to only the rich and the affluent. However with the liberalization of the Indian economy, entry of several
foreign investors and banks has changed the scenario around. Catapulted by the growing economy, the
purchasing power of Indian middle class, gave way to a surge in the demand for automobiles. This gave
way to the role of the banks and other financial institutions, which harnessed the growth of the auto
mobile industry by offering auto loans at competitive prices. The Indian auto segment in general became
the eye candy for the financiers due to its consistent growth. The automobile loans offered by banks and
other financial institutions have proliferated the rise of the automobile sector in India by conduit of
affordable schemes at competitive rates of interest. The availability of various schemes and features and
the fact that the financing can cater to the requirements of the customer and needs has made auto
financing products viable option in India.
2.1.2 Background of the Automotive Sector
The automobile industry can be classified into
a) Passenger vehicles,
b) Commercial vehicles,
c) Three wheelers.
d) Two wheelers.
2.1.3 Categories of Auto financiers
Entry in the auto financing segment has been relatively easy and hence the gap between existing players
and new entrants is not much. Auto financing market typically remains competitive. Some of the players
in the market are:
Banks

Banks, both public and private, cover a huge portion of the auto finance market since they are among the
most established lending institutions around. They are in a position to offer competitive rates as
compared to other financers with better access to credit histories. Customers are used to working with
their local bank for a variety of day-to-day needs. Turning to them for car financing seems like the
natural next step. The CASA advantage that banks have gives them an edge over other financiers.
Non-Banking Finance Companies (NBFCs)
Acting as an aide-de-camp to banks, NBFCs occupy a significant position in financial intermediation.
NBFCs cover a signification portion of the total auto finance market India. Though banks have low cost
of funds, NBFCs have certain advantages and lesser stringent regulatory requirements as compared to
banks. NBFCs are not bound by priority sector lending requirements, not required to maintain CRR, can
customize products, have wider reach to customers. These differences have resulted in NBFCs having a
significant role playing with banks on the lending front. Also, banks have concentrated more on the car
loan segment whereas NBFCs are more focused on providing finance to the commercial vehicle
segment.
Rental Operators
Several companies provide equipment on rental for periods ranging from few weeks to years to the end
customers. Short term renting of commercial vehicles for construction and infrastructure space are
popular in India as well.
Captive leasing and Financing Arms of leading manufacturers
The captives of some major international manufacturers only recently entered the Indian market .The
captives initially only supported the expansion of the OEMs dealer network through floor plan and
working capital financing. It is only in the last two to three years that captives have started to introduce
more sophisticated products, such as insurance and service packages.
2.1.4 Commercial Vehicle Financing: Segregation by vehicle type

Since the CV sector in itself is quite large, there are several categories/ classes of CVs which can be
considered for financing. Each category in itself is a huge market.
Lower-end Upper-end
The main difference between the lower-end and upper-end vehicles lies in the facilities provided by
them and their prices on the assets being standard assets in the market with a ready secondary market.
The upper-end vehicles have the following advantages over the lower-end vehicles.
1. High quality equipments.
2. Better performance.
3. More precise construction.
4. High design.
5. Technologically Innovative.
The lower-end vehicles in India are much cheaper than the upper-end vehicles due to their low cost of
production.
Light Heavy
The Light CVs refers to those commercial vehicles whose weight does not exceed 3.5 tones whereas the
Medium & heavy CVs refers to those whose weight exceeds 3.5 tones.
Earlier the demand for used vehicles was restricted to MCVs and HCVs but now the list also includes
smaller vehicles like LCVs and small commercial vehicles, this is because of the huge sales of these
kinds of vehicles in the past 5years. The demand for the used vehicles stands good even in the rural
areas, semi-urban areas and the Tier III cities. In case of the new vehicles the market is dominated by the
Small Commercial Vehicles i.e. less than 5 tones. The demand for the bigger vehicles has slipped down
because the industrial production has come down and due to the lack new investments.
2.1.5 Large Fleet Operators Small Fleet Operators


The market for the fleet operators has been deteriorating since 2011. The sharp rise in the overall cost of
ownership combined with considerable rise in the operating costs and the constant excessive pressure on
the fleet operators. The small fleet operators are running out of cash to purchase the vehicles and service
their debt, whereas the large fleet operators are under pressure to maintain high cash reserve to maintain
their working capital.
2.1.6Auto financing products
There are several variants of financing options available to customers in the auto segment. Some of the
popular products are:
a. Vanilla loan
b. Hire purchase
c. Leasing including financial lease and operating lease
d. Conditional sale
e. Asset renting
2.1.7Financing of Commercial Vehicles
The financial products offered by financiers in the CV space are mostly leasing (both operating and
financial) and loans.
Commercial Vehicle Loan in India

Commercial vehicle loans are usually taken by individual, partnership firms, proprietorship firms, HUF
(Hindu Undivided Family), trusts, societies, self-employed, businessmen and private and public limited
companies for their financing needs for owning and running commercial vehicles. Commercial vehicle
loan options are available for buses, tippers, transit mixers or any other heavy, light or small commercial
vehicle. A commercial vehicle loan can be taken for a variety of commercial vehicles, which may be
used at different locations. While loans are sanctioned for the purchase of a new commercial vehicle,
banks also offer loans for pre-owned vehicles. Borrowers can also avail of a top up on existing loans
subject to conditions.
The interest rates range from 10% to 15% depending on the customer and vehicle segment. The rate
depends on a lot of factors such as the number of vehicles owned by the borrower, his business turnover,
10

repayment track record from other financiers (if any), etc. The financial institutions are able to confirm
the rate of interest once they have studied the documents. The interest rate may be fixed or variable.
Processing charges include processing fee, stamp duty and vehicle valuation charges. The processing fee
depends on the loan amount. It usually ranges from 2%-4%.
Commercial Vehicle leasing in India

Globally there is a clear domination of lease over loan. In auto financing segment over 60% of US
market and 40% of European market follows the lease route for an auto purchase. The auto-leasing
sector in India has recently picked up pace, although the market is still in its nascent stage. The scope of
growth of leases in this sector is very high owing to the large number of infrastructural projects in the
pipeline which will result in the demand for commercial vehicles to grow combined with the rising cost
of manufacturing these vehicles, users are forced to look at lease options more actively than ever before.
On the flip side, the deterrents to growth of leasing as a financial product, which may be more generic to
the product than specific to the sector, are multiplicity of taxes. For instance, in a chassis, the
combination of the chassis and the body is treated as a new asset for indirect tax purposes and
accordingly, the chassis suffers local taxes whereas the body of the vehicle is subject to works contract.
From leasing point of view sales tax in form of VAT/ CST are applicable on lease rentals. Then, at the
end of the lease if there is any transfer of ownership, sale tax is applicable on the sale consideration.
Further there may be issues of input tax credit being disallowed, adding to the costs of the transaction,
making it completely unviable. Though leasing is becoming attractive as a more popular product, the
add-on costs in the form of taxes are acting as a deterrent and add to the complexities. Nevertheless this
untapped sector provides huge opportunities to financial institutions due to its inherent benefits
pertaining to risk removal and cash flow restructuring.
Leasing has been a widely accepted product in the passenger vehicle segment owing to the tax free
perquisite benefit availed by the employees. In the current market scenario the penetration rate of leasing
in passenger vehicle segment is 25% vis--vis the penetration rate of leasing being 3%-4%. CV
financing and CV industry in particular is posed to several challenges in the recent times than
opportunities clearly explaining the traction in volumes and numbers.
2.1.8 Opportunities
11

In total, India has more than 35 financial institutions that provide financing.4 Banks have an advantage
over other financiers in the auto finance market because of the high degree of confidence by customers.
They offer lower rates, have better access to credit histories and possess the ability to process loan
approvals more quickly. 5 While banks have to cater to multiple products and services, some NBFCs are
more sector focused. Banks were taking the easier route of lending to NBFCs and also fulfilling their
priority targetlending to agriculture and allied activities. However, with the change in regulations and
the recommendations of the Nair committee on priority sector lending, private banks have realized that
they would have to boost their priority sector lending. Leasing and additional service offerings are rare
with NBFCs. Even captives typically do not offer additional services, other than insurance broking. But
with more Indians owning cars, maintenance, warranty and insurance packages have become more
attractive and international captives have begun to respond with a variety of product bundles. As
additional vehicle services are not very common, this sector offers great opportunities for captives to
differentiate themselves from competing consumer banks. In particular, customized and sophisticated
products, like maintenance or insurance packages, could help captives to raise customer awareness. As
the service business promises high profitability, there is huge potential to realize additional revenues.
2.1.9 Challenges
The current challenges on the other hand to the growth of the auto finance industry are several. The CV
industry, since the start of 2013, has entered into a downward cycle following the closure of many iron
ore mines, coupled with industrial slowdown and weak investor sentiment across sectors, which have
held back new projects. Input costs for the medium and heavy CV transport operators have gone up
significantly due to substantial increase in diesel prices, driver salaries and toll charges. At the macrolevel slowing of the economy and regulatory imbalances impacted the CV financing industry. Rise in
lending rates resulting in higher cost of funds and constantly tightening lending norms and fleet
operators/ borrowers struggling to repay debt and soaring NPA levels have led to the stunting of auto
finance market as credit evaluation and collection efforts have become more stringent. .
2.1.10Prospects
12

The improving road infrastructure in rural and semi-urban areas will be one of the main drivers of this
development. The growth of commercial vehicle industry has been linked to the countrys industrial
activities and the overall GDP. In the short term the CV volumes and financing has got impacted due to
the macro factors, but considering the huge infrastructural demand in the country and the strong
fundamentals, we are bullish on the long term prospects of the CV industry in general and higher
penetration CV financing in particular.
2.2 COMPANYPROFILE
13

2.2.1 INTRDUCTION
Shriram Commercial Vehicle Finance is Indias largest player in commercial vehicle finance that was
established in the year 1979. The company has a network of 654 branches and service centers. The
company is one of the largest asset financing NBFCs in India with a niche presence in financing preowned trucks and Small Truck Owners (STOs).
The company is a part of the SHRIRAM conglomerate which has significant presence in financial
services viz., commercial vehicle financing business, consumer finance, life and general insurance, stock
broking, chit funds and distribution of financial products such as life and general insurance products and
units of mutual funds. Apart from these financial services, the group is also present in non-financial
services business such as property development, engineering projects and information technology.
STFC decided to finance the much neglected small truck owner. The company understood the power of
'Aspiration' much before marketing based on 'Aspiration' became fashionable. The company started
lending to the small truck owner to buy new trucks. But the company found a mismatch between the
aspiration and ability. The truck operator was honest but the equity at his command was not sufficient to
support the credit levels required to buy a new truck.
2.2.2 HISTORY AND MILESTONE
MARCH 2014, Shriram transport finance company total assets under management (AUM) increased by
5.63% to Rs.53, 102.11crore.
APRIL 2005: Shriram Group attracts largest Venture Capital Investment in the Indian non-banking
financial sector, from Overseas
JULY 2004: UTI Bank picks up equity stake in two Shriram Group companies
17MARCH 2003: Shriram Investment Limited received the Mother Teresa Award for Corporate
Citizenship.
DECEMBER2002: Shriram Group enters into strategic alliance with Citicorp Finance and Cummins
Auto Services
14

31AUGUST2002: Shriram Group ties up with UTI Bank for Retail Truck Financing Scheme to offer
low cost loans for purchase of new or used trucks to transport operators.
7MAY2002: Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional" for the year
2002
4FEBRUARY2000: Shriram Recon Trucks incorporated as India's first corporate network for selling
reconditioned used trucks.
15DECEMBER1999: Midcrop, the flagship company of Shriram groups pharmacy division became
the first Indian company to win the Indian Drug Manufacturers Association
2.2.3 VISION, MISSION AND VALUES.

Helping create wealth, empowering people through prosperity, Putting people first.
The Shriram Group set out with the objective of reaching out to the common man with a host of
products and services that would be helpful to him in his path to prosperity. Over the decades, the Group
has
achieved significant success in executing this objective and has created a tremendous sense of
loyalty amongst its customers.

Efficiency in operations, integrity and a strong focus on catering to the needs of the common
man, by offering him high quality and cost-effective products & services, are the values driving the
organization. These core values are deep-rooted within the organization and have been strongly adhered
to over the decades.
The group prides itself on its perfect understanding of the customer. Each product or service is
tailor-made to perfectly suit the needs of the customer. It is this guiding philosophy of putting people
first that has brought the Group closer to the grassroots and has made it the preferred choice for all
financing requirements amongst the customers.
2.2.4 Policy Statement
15

The Company believes that a diverse Board will enhance the quality of the decisions made by the Board
by utilizing the different skills, qualification, professional experience, gender, knowledge etc. of the
members of the Board, necessary for achieving sustainable and balanced development. For appointments
of persons to office of directors and deciding composition of the Board, the Nomination Remuneration
and Compensation Committee (NRC Committee) and the Board shall also have due regard to this policy
on Board diversity. In this process the NRC Committee /Board will take into consideration qualification
and wide experience of the directors in the fields of banking, finance, regulatory, administration, legal,
commercial vehicle segment apart from compliance of legal and contractual requirements of the
Company. The total number of directors constituting the Board shall be in accordance with the Articles
of Association of the Company. The Board of directors of the Company shall have an optimum
combination of executive and non-executive directors with at least one woman director and the
composition of the Board shall be in accordance with requirements of the Articles of Association of the
Company, the Companies Act, 2013, Listing Agreement and the statutory, regulatory and contractual
obligations of the Company.
2.2.5SERVICES OF THE COMPANY
Main Products
HEAVY DUTY TRUCK (HDT)
Defined as Heavy Commercial Vehicles or alternatively Multi Axle Vehicles having gross vehicle weight
upwards of 16.2 tons . Being a life line of the economy, these vehicles are an integral part of the
commercial activity of any country and these vehicles are usually deployed in the long haul distance and
in transportation of materials at the ports as also in the extraction of natural resources like Iron or Coal
etc.
Almost 100 percent of these vehicles are purchased only under financing and it is estimated that nearly
1.5 to 2million HCVs are plying the Indian roads. Shriram Transport offers financing options for the
purchase of both new and used vehicles to this segment which has some of the bigger fleet owners on
one end of the spectrum and the small fleet / single vehicle owner on the other.
MEDIUM, INTERMEDIATE AND LIGHT DUTY TRUCK (LDT)
16

These vehicles have a gross vehicle weight ranging from 5 to 16.2 tones and are engaged in medium
haulage business especially connecting rural/ semi urban roads to urban centers. The population of these
vehicles is estimated to be around 5 million. Shriram Transport offers tailor made financing solutions for
the purchase of both used and new LCVs across the country which has the highest component of stand
operators within its segmentation.
PICK UP TRUCK AND MINI TRUCK (P&MT)

These vehicles have a GVW of less than 5 tons and they fulfill the role of transportation in the spoke in a
hub and spoke arrangement. These vehicles have high concentrations in short hauls and last mile
delivery situations. Nearly 3 million of these vehicles occupy the bottom end of this industry of which
about 0.3 to 0.5 million vehicles are three wheeler goods carrying vehicles, the balance being four
wheelers. Shriram Transport gives flexible loan options to prospective buyers of these vehicles which
incidentally has the highest concentration of the small operator and driver cum owner category of
vehicle users.
PASSENGER VEHICLE
India being a country with a population of 1.4 billion coupled with a widespread geographical area and
an extensive road network, the volume of people moving from one place to another is catered to by a
wide range of passenger vehicles starting from simple three wheelers, taxis, mobs, vans to high cost and
state of the art Volvo / Mercedes buses travelling across the length and breadth of the country. There are
nearly 10 millions of passenger vehicles that exist which make this as one of the highest potential
vertical for financing and the most insulated from economic downturns. In the car segment Shriram
Transport had earlier restricted itself to finance on yellow board (Taxi) vehicles only, keeping in line
with its philosophy of lending against an earning asset but from 2010 personal car loans have also been
included in the product range, thus aligning ourselves to changing lifestyles of the populace.
FARM EQUIPMENT
17

Being an agrarian economy, a substantial part of India lives in its villages and a major portion of our
population is engaged in agriculture. Shriram Transport has a granular footprint of more than 300 rural /
semi urban branches which are located in these centers to cater to the requirement of finance from
buyers of tractors, harvesters and various other farm equipments which are deployed both for
agricultural and commercial purposes. Hitherto a domain of co operative and nationalized banks rural
branches, this segment is 5millions lakh strong and is ever growing thanks to mechanized methods of
agriculture becoming a necessity in the wake of rural labor in availability.
CONSTRUCTION VEHICLE & EQUIPMENT

The recent impetus given by the Indian Government for infrastructure spending has exponentially
increased the potential for construction equipments which in turn prompted STFC to have a separate
subsidiary to fund the capital requirements of large and medium contractors engaged in building of
roads, bridges, dams and other infrastructure projects called Shriram Equipment Finance Co Ltd.,
(SEFC) However at STFC we do continue to fund the retail portion of this vast business with easy
solutions for buyers of tippers, dumpers, backhoe loaders and cranes and as also for the purchase of pre
owned construction equipment.
Other products
Tire Finance
Engine Replacement Finance
Co-Branded Credit Card
Freight bill discounting
2.2.6 AREAS OF OPERATION
18
Managing various credit operations including appraising proposals, conducting risk analysis &
scrutinizing relevant documents before sanctioning loans.
Handling approval of loan proposals & sanctioning credits after appraising solvency status &
verifying documents as well as post sanction follow-up and disbursal of loan
Managing and monitoring delinquent account collection and establishing terms of payment as
well as handling vendor management.
Preparing MIS reports to provide feedback to top management on business operations,

Handling Advancing, Collection & Credit Appraisal for finance of commercial vehicles
Looking after the cross sales of GOLD LOAN.
Undertaking proposal evaluation and disbursement.
Giving approvals for new & used cases of commercial vehicles like over funding and low IRR.
2.2.8 INFRASTRUCTURE FACILTIES

Shriram commercial vehicle Finance provides finance to contractors, sub-contractors, mine owners and
operators, plant hirers and others involved in the development of India's infrastructure sector such as:
Roads Contractors, Irrigation Contractors, Mining Owners and Operators, Quarry Owners/Operators,
Ports Contractors, Airport Contractors, Urban Infrastructure Contractors/Builders and Plant Hires - in
other words, almost every possible entity and segment contributing to the infrastructure development in
the country.
Shriram Equipment Finance with its focused retail approach in the industry brings in pronounced
advantages for both customers and manufacturers/dealers.
Millions of commercial vehicles both small and medium size, 200 000 agricultural equipments and an
equal number of construction equipments are yearly getting added in our country. These equipments are
19

bound to age over a period of time and changes hands from the first to the second and the third owner
during its lifetime.
There are no clear studies done to suggest the value of this industry but industry experts estimate the
value of used vehicle and equipment business (commercial vehicles, agric and construction equipments)
at Rs.75 000 Crores annually, which is probably the size of the new vehicle business in the country
today
Despite such a huge opportunity, there is no organized platform available for buying and selling of used
vehicles and equipment in the country. Identifying an opportunity and leveraging on its experience of
operating in this segment for decades, the Shriram Group has launched the concept of Shriram Auto
mall, an ideal platform for buying and selling of used and unused trucks, agricultural equipments and
construction equipments. Shriram Auto mall has launched full-fledged Auto malls at Chennai, Baroda,
Vizag, Mumbai, Manesar, Aurangabad, Ludhiana, Pathankot, Gulbarga, Hyderabad, Jammu, Jaipur,
Kolkata, faizabad and Kota. The company plans to launch about 60 Auto malls across the country.
Shriram Auto mall is the right platform for buying, selling used vehicles
2.2.9AWARDS AND RECOGNITION
Recipient of the social responsiveness awards instituted by Business world Compaq at national level
under the auspices of FICCI, Delhi
Adjudged as the third prize winner for having rended commendable service in the areas of social welfare
and rural development
Ms. Akhila Srinivasan receiving the social responsiveness Award instituted by Business World
Company from the Honble Vice President of India Krishna Kant in the year 1999.
Recipient of outstanding woman professional for 2000 01 by FICCI FICCI Ladies organization
(FLO). The award was given by Ms. Sheila dixit Chief Minister Delhi.
20

Mother Teresa award for corporate citizenship instituted by Loyola institute of Business Administration
(LIBA) Chennai, 2002.
NATIONAL AWARDS WON
Business World Compaq award fota Social Responsiveness instituted by FICCI from the Honble
Vice President of India Mr. Krishna Kant on 1999.
Mother Teresa award for Corporate Citizenship instituted by Loyola Institute of Business
Administration (LIBA), Chennai in 2002.
2.2.10 SWOT ANALYSIS
Strengths
The pioneer in the pre-owned commercial vehicles financing sector
Pan-India presence with 488 branch offices all over the country.
A well-defined and scalable organization structure, capable of supporting surging growth
Low delinquency as assets are backed with adequate cover and are easy to repossess with immediate
liquidity.
Strong financial track record driven by fast growth in AUM with low Non Performing Assets (NPAs)
Weaknesses
The Companys business and its growth are directly linked to the GDP growth of the country
Any slowdown in GDP growth may have a negative impact on the business.
Flexibility in Earning per share.
Continuously increasing the Total Expenditure of the Company.
Opportunities
Growth in the CV market driven by the economic growth and the infrastructure development in the
country
Strong demand for pre-owned tractors
21

Loans for working capital requirements of CV users
Partnerships with private financiers will enable the Company to enhance its reach without significant
investments in building infrastructure
Threats
Maintaining relationships with customers who are mobile and have no proper documentation
Maintaining asset quality.
Regulatory changes in the NBFC and transportation sectors.
.Increasing Number of Competitors
22
CHAPTER 3
THEORETICAL FRAMEWORK
23
THEORETICAL FRAMEWORK
3.1 FINANCIAL ACCOUNTING:
Financial accounting is the process of systematic recording of the business transactions in the
various books of accounts maintained by the organization with the ultimate intention of preparing
the financial statement there from. These financial statements are basically in two forms. One,
profitability statement which indicates the result of operations carried out by the organization during
a given period of time and second balance sheet which indicates the state of affairs of the
organization at any given point of time in terms of its assets and liabilities.
Main purpose of financial accounting is to ascertain profit or loss and to indicate financial position
of an enterprise. Two fundamental statements of financial accounting are income and expenditure
statement and balance sheet. The profit and loss account or income and expenditure account is
prepared for a particular period to find out the profitability of the firm and balance sheet is prepared
on a particular date to determine the financial position of the firm.
Financial accounting summaries transactions taking place during a period with the objective of
preparing the financial statement.
3.2 FINANCIAL STATEMENT
FINANCIAL STATEMENT refers to formal and original statements prepared by a business
concern to disclose its financial information According to John.N.Meyer, The financial statement
provides summary of accounts of a business enterprise, the balance sheet reflecting assets, liabilities
and capital as on a certain date and the income statement showing the result of operation during a
certain period
The financial statements are prepared with a view to depict the financial position of the concern.
They are based on the recorded facts and are usually expressed in monetary terms. The financial
statement are prepared periodically that is generally for the accounting period
The term financial statement has been widely used to represent two statements prepared by
accountants at the end of specific period. They are:
Profit and loss a/c or income statement
24
Balance sheet or statement of financial position
3.3 Limitation of Financial Statement:
Information shown in financial statement is not precise since it is based on practical experience and
the conventions and rules developed therefore
Financial statements do not always disclose the correct financial position of the business concern as
they are influenced by the personal opinions, judgment, subjective view and whims of accountant of
each concern
Balance sheet of a concern is a statics document it disclose the financial position of a concern on a
particular date.
Information disclosed by profit& loss a/c may not be the real profit as many items shown in the
profit & loss a/c may not the real
Financial statements are dumb, because they speak themselves. The statements require further
detailed analysis and interpretation.
Financial statement of the one period may not be comparable.
Financial statements do not disclose the contribution of man towards the efficiency of the business.
3.4. EVALUATION AND INTERPRETATION OF FINANCIAL STATEMENT

The various tools of financial statement are used for decision-making process. The financial
statement becomes a tool for future planning and forecasting. The analysis of these statements
involves their division according to similar groups and arranged in desired form. The interpretation
involves the explanation of financial facts in a simplifiers manner.
3.5. TYPE OF ANALYSIS: The process of financial statement analysis is of different types. The
process of analysis is classified on the basis of information used and modus operandi of analysis. The
classification is as under:
On the basis of material used:
According to material used financial analysis can be of two types:
25
1. External analysis: - This analysis is done by outsiders who do not have access to the detailed
internal accounting records of the business firm. These outsiders include investors, creditors, potential
investors, creditors, potential creditors, government agencies, credit agencies, and the general public.
For financial analysis, these external parties to the firm depend almost entirely on the published
financial statement.
2. Internal analysis: - The analysis conducted by persons who have access to the internal accounting
records of a business firm is known as internal analysis. Such an analysis can, therefore, be performed
by executives and employees of the organization as well as govt. agencies which have statutory powers
vested in them. Financial performance for managerial purpose is the internal type of analysis for
managerial purposes in the internal type of analysis that can be affected depending upon the purpose to
be achieved.
2. On the basis of modus operandi:
According to the method of operation followed in the analysis, financial evaluation can also be two
types:
1. Horizontal analysis: - Horizontal analysis refers to the comparison of financial data of the company
for several years. The figures for this type of analysis are presented horizontally over a number of
columns. The figures of various years are compared with standard or base year. A base year is a year
chosen as beginning point. This type of analysis is also called Dynamic analyses.
2. Vertical analysis: - Vertical analysis refers to the study of relationship of the items in the financial
statement of one accounting period. In this type of analysis the figures from the financial statement of a
year are compared with a base selected from the same years statement. It is also known as Static
Analysis.
3.6. TECHNIQUES/TOOLS OF FINANCIAL PERFORMANCE ANALYSIS:
An analysis of financial performance can be possible through the use of one or more tools /
techniques of financial analysis:
26

ACCOUNTING TECHNIQUES
It is also known as financial techniques. Various accounting techniques such as Comparative
Financial Analysis, Common-size Financial Analysis, Trend Analysis, Fund Flow Analysis, Cash
Flow Analysis, CVP Analysis, Ratio Analysis, Value Added Analysis etc. may be used for the
purpose of financial analysis.
3.6.1. Comparative Financial statement Analysis
Comparative Financial Statement analysis provides information to assess the direction of change in
the business. Financial statements are presented as on a particular date for a particular period. The
financial statement Balance Sheet indicates the financial position as at the end of an accounting
period and the financial statement Income Statement shows the operating and non-operating results
for a period. But financial Managers and top management are also interested in knowing whether
the business is moving in a favorable or an unfavorable direction. For this purpose, figures of
current year have to be compared with those of the previous years. In analyzing this way,
comparative financial statements are prepared.
Objectives purpose or significance of comparative financial statements
1. To simplify data
2. To make inter period/inter-firm comparison
3. To indicate the trends
4. To enable forecasting
5. To indicate the strengths and weaknesses of the firm
6. To compare the performance
7. To analyze expenses
8. To analyze profits
27

Tools for comparison of financial statements
Comparative financial statement is a tool of financial analysis that depicts change in each item of the
financial statement in both absolute amount and percentage term, taking the item in preceding
accounting period as base.
Comparison and analysis of financial statements may be carried out using the following tools:
1. Comparative Balance Sheet: The comparative balance sheet shows increase and decrease in
absolute terms as well as percentages, in various assets, liabilities and capital. A comparative analysis of
balance sheets of two periods provides information regarding progress of the business firm.
The main purpose of comparative balance sheet is to measure the short- term and long-term solvency
position of the business.
2. Comparative Income Statement: Comparative income statement is prepared by taking figures of
two or more than two accounting period, to enable the analyst to have definite knowledge about the
progress of the business. Comparative income statements facilitate the horizontal analysis since each
accounting variable is analyzed horizontally.
3.6.2. Common-size Financial Statement Analysis

Common size statements are such statements in which the items of financial statements are covered into
percentage of common base. In common-size income statement, by assuming net sales as 100(i.e %)and
other individual items are converted as percentage of this. Similarly, in common size balance sheet
,total assets are assumed to be 100 (i.e. %) and individual assets are expressed as percentage.
Objectives of common size statements
1. Presenting the change in various items in relation to total assets or total liabilities or net sales.
2. Establishing a relationship.
3. Providing a common base for comparison.
28

Types of common size statements
1. Common-Size Balance Sheet: A common size balance sheet is a statement in which total of
assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage
of the total. That is why it is known as percentage balance sheet.
Common-size balance sheet facilitates the vertical analysis since each item of the Balance Sheet
is analyzed vertically.
2. Common-Size Income Statement: Common-size income statement is a statement in which the
figures of net sales is assumed to be equal to 100 and all other figures of profit and loss A/c are
expressed as percentage of net sales. This statement facilitates the vertical analysis since each
accounting variable is analyzed vertically. One can draw conclusion, regarding the behavior of
expenses over period of time by examining these percentages.
3.6.3. Trend Analysis
Trend analysis indicates changes in an item or a group of items over a period of time and helps to
drown the conclusion regarding the changes in data. In this technique, a base year is chosen and the
amount of item for that year is taken as one hundred for that year. On the basis of that the index
numbers for other years are calculated. It shows the direction in which concern is going. Trend
percentage are very useful is making comparative study of the financial statements for a number of
years. These indicate the direction of movement over a long tine and help an analyst of financial
statements to form an opinion as to whether favorable or unfavorable tendencies have developed.
This helps in future forecasts of various items. For calculating trend percentages any year may be
taken as the base year. Each item of base year is assumed to be equal to 100 and on that basis the
percentage of item of each year calculated.
3.6.4. Ratio Analysis
Meaning of Ratio: - A ratio is simple arithmetical expression of the relationship of one number to
another. It may be defined as the indicated quotient of two mathematical expressions. According to
Accountants Handbook by Wixon, Kell and Bedford, a ratio is an expression of the quantitative
relationship between two numbers.
29

Ratio analysis is the process of determining and presenting the relationship of items and group of
items in the statements. According to Batty J. Management, Accounting Ratio can assist
management in its basic functions of forecasting, planning coordination, control and
communication.
It is helpful to know about the liquidity, solvency, capital structure and profitability of an
organization. It is helpful tool to aid in applying judgment, otherwise complex situations.
ADVANTAGE OF RATIO ANALYSIS
1. Helpful in analysis of Financial Statements.
2. Helpful in comparative Study.
3. Helpful in locating the weak spots of the business.
4. Helpful in Forecasting.
5. Estimate about the trend of the business.
6. Fixation of ideal Standards.
7. Effective Control.
8. Study of Financial Soundness.
LIMITATIONS OF RATIO ANALYSIS

1.
Comparison not possible if different firms adopt different accounting policies.
2.
Ratio analysis becomes less effective due to price level changes.
3.
Ratio may be misleading in the absence of absolute data.
4.
Limited use of a single data.
5.
Lack of proper standards.
6.
False accounting data gives false ratio.
7.
Ratios alone are not adequate for proper conclusions.
8.
Effect of personal ability and bias of the analyst.
30
CLASSIFICATION OF RATIO
PROFITABILITY RATIO
Profitability Ratio measured as a ability to make maximum profit from optimum utilization of resources
by a business concern is termed as profitability.
1. OPERATING PROFIT RATIO
This ratio is calculated as follows:
Operating Profit Ratio = (Operating Profit / Sales)*100
The difference between net profit ratio and net operating profit ratio is that net operating profit is
calculated without considering non-operating expenses and non-operating incomes. If we deduct this
ratio from 100,the result will be operating ratio. Higher operating profit ratio enables the organization to
recoup non-operating expenses out of operating profits and provide reasonable return.
2. NET PROFIT RATIO
It measures of management efficiency in operating the business successfully from the owners point of
view. Higher the ratio better is the operational efficiency of business concern.
Net Profit Ratio = (Net Profit after Tax / Net Sales) * 100
ACTIVITY RATIO OR TURNOVER RATIOS:

Activity ratios highlight the operational efficiency of the business concern. The term operational
efficiency refers to effective, profitable and rational use of resources available to the concern.
1. WORKING CAPITAL TURNOVER RATIO
Working capital ratio measures the effective utilization of working capital. It also measures the smooth
running of business. The ratio establishes relationship between cost of sales and working capital.
31
Working Capital Turnover Ratio = (Sales / Net Working Capital)
2. CAPITAL TURNOVER RATIO

Managerial efficiency is also calculated by establishing the relationship between cost of sales or sales
with the amount of capital invested in the business.
Capital Turnover Ratio = (Sales / Capital Employed)
3. TOTAL ASSET TURN OVER RATIO.
This ratio is calculated by dividing the net sales by the value of the total asset. A high ratio is indicator of
over trading of total assets while low ratio reveals ideal capacity. The traditional standard for the ratio is
two times.
Total Assets Turnover Ratio = Sales / Total Assets
SOLVENCY OR FINANCIAL RATIOS
Solvency or Financial Ratios include all ratios which express financial position of the concern. The term
financial position generally refers to short-tem and long-term solvency of the business concern,
including safety of different interested parties.
1. ABSOLUTE LIQUID RATIO
The absolute liquidity ratio is obtained by dividing cash and marketable securities by current
liabilities. It is also called cash position ratio. When liquidity is highly restricted in terms of cash
equivalents this ratio should be calculated
Absolute Liquid Ratio = (Cash and marketable Security/ Current Liability)*100
32

2. CURRENT RATIO
In order to measure the short-term liquidity or solvency of a concern, comparison of current assets and
current liabilities is inevitable. Current ratio indicates the ability of a concern to meet its current
obligations as and when they are due for payment.
Current Ratio = (Current asset / Current liabilities)
3. DEBT EQUITY RATIO

The debt equity ratio is determined to ascertain the soundness of the long term financial policies of the
company and also to measures the relatives proposition of outsiders funds and shareholders funds
investments in the company.
Debt-Equity Ratio = (Total Long-term Debt / Shareholders Funds )
4. DEBT TO TOTAL FUNDS RATIO
This ratio gives same indication as the debt equity ratio as this is a variation of debt equity ratio. This
ratio is the relationship between long term debts and total long term funds.
Debt to Total Funds Ratio= (Long-term Debt / Total Funds)
5. EQUITY TO TOTAL FUNDS

Equity to total funds explains the relationship between equity and total funds.
Equity to Total Funds = (Equity / Total Funds)
3.6.5 DUPOINT ANALYSIS
The Du-Pont Company of USA found a system of financial analysis which has received widespread
recognition and acceptance. The Du Pont Company began to use particular approach to ratio analysis
to evaluate the firms performance.
DUPOINT ANALSIS
33
Return on Equity
Multiplied by
Return on Total Asset
Financial Leverage
Multiplier
Multiplied by
Net Profit Ratio
Total Asset
Turnover
Divided by
Earnings
Available for
Equity
Shareholders
Divided by
Total Asset
Divided by
Sales
Equity Share holders

Fund
Plus
Total Assets
Total Liabilities
Sales
Equity
Shareholders Fund
Plus
Current Liabilities
Long term Liabilities
Income Statement
Plus
Current Asset
Net Fixed Asset
Balance Sheet
Neither the Net Profit Margin nor the Total Asset Turnover ratio, by itself, provides an adequate
measure of overall profitability. The ROI ratio or Earning Power of invested capital provides the
answer.
The Chart indicates:

34
The earning power or the ROI ratio is a central measure of the overall profitability and
operational efficiency of the firm.
The Du Pont chart shows the interaction of profitability and activity ratios.
It implies that the performance of a firm can be enhanced either by generating more sales with
same amount of investment or by increasing the profit margin.
The left hand side of the Du Pont chart shows the details underlying the net profit margin ratio.
To maximize Return on Assets we should increase sales price of our products. This will increase
the net margin, which will in turn increase the return on assets.
Increase in Net profit margin can also be achieved through cost-reduction.
The right had side of the Du Pont Chart throws light on the determinants of the total assets
turnover ratio.
Total assets consist of fixed assets as well as current assets.
The total turnover ratio depends how efficiently and effectively these assets are used.
Therefore to increase this ratio, one should undertake measures like inventory control, cash flow
management, receivable management, maintenance of fixed assets, etc. to use these assets
optimally.
Optimum utilization of the assets will increase productivity and result in better sales performance
in-turn influencing the assets turnover ratio.
A company should have proper control on its inventory and debtors so as to ensure an efficient
cash flow in the enterprise.
An increase in the assets turnover ratio will increase the return on assets.
This is the how ROI concept could be used for proper control using the Du Pont Chart.
Diagrams & Graphs
Diagrams and graphs are visual aids, which give a birds eye view of a given set of numerical data.
They present the data in simple readily comprehensible and intelligible form. Graphical presentation
of statistical data gives a pictorial effect instead of just a mass of figures. They depict more
information than the data shown in the table which through light on the existing trend and changes
in the trend of the data
35
CHAPTER 4
36

4. ACCOUNTING TECHNIQUES
4.1 Comparative Financial statement Analysis

Table No-4.1
1. COMPARATIVE INCOME STATEMENTOF SHRIRAM TRANSPORT COMPANY FOR
THE YEAR ENDED 31.03.2012
in Rs Cr
Percentage
Amount
Increase /
Increase /
Particulars
Decrease
2011
2012
Decrease
during 2011during 20112012 (In %)
2012
Income
5883.06
Sales Turnover
5230.15
642.91
12.29
0.00
Excise Duty
0.00
0.00
0.00
5883.06
Net Sales
5230.15
652.91
12.48
2.50
Other income
199.93
(197.43)
(98.75)
0.00
Stock Adjustments
0.00
0.00
0.00
5430.08
5885.56
455.48
8.39
Total income
Expenditures
0.00
0.00
0.00
0.00
Raw materials
0.00
0.00
0.00
0.00
Power and Fuel Cost
369.48
358.21
11.27
3.14
Employee Cost
27.46
14.97
12.49
83.43
Other manufacturing expanses
786.92
571.39
215.53
37.72
Selling and Admin Expenses
316.30
341.81
25.51
7.46
Miscellaneous Expenses
1500.16
1286.38
213.78
16.62
Total Expenses
3943.77
4382.90
439.13
11.13
Operating Profit
4143.70
4385.40
241.7
5.83
PBDIT
2271.96
2474.90
202.94
8.93
Interest
1871.74
1910.50
38.76
2.07
PBDT
10.82
13.46
2.64
24.40
Depreciation
11.99
16.12
4.13
34.45
Other written off
1848.93
1881.12
32.19
1.74
PBT
619.05
623.46
4.41
0.71
Tax
1229.88
1257.45
27.57
2.24
Net Profit
1286.38
1500.16
213.78
16.62
Total Value Addition
37

INTERPRETATION
The comparative income statement shows total income amount increase during the year 2011-2012 was
Rs.455.48 (in Cr) and increase in percentage of 8.39.
For the year 2011-2012, the total expenses indicatesRs.439.13 (in Cr) and percentage increase during the
year 2011-2012 were 11.13.
The operating profit has been increased is Rs.4382.90 (in Cr) in the year 2012 which is comparing to the
previous year was Rs.3943.77 (in Cr) and the percentage shows increase by 11.13.
The Net profit amount increases during 2011-2012 is Rs.27.57 (in Cr) and shows percentage increase by
2.24.
Table No-4.2
2. COMPARATIVE BALANCE SHEET OF SHRIRAM TRANSPORT COMPANY THE YEAR
ENDED 31.03.2012
Percentage
Increase /
Decrease
during 20112012 (In %)
in Rs Cr
Particulars
Source Of Funds
Total share capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Net worth
Secured Loans
Unsecured loans
Total Debt
2011
2012
Amount
Increase /
Decrease
during 20112012
226.18
226.18
0.00
0.00
4678.21
4904.39
14869.38
5012.34
19881.72
24786.11
226.32
226.32
0.00
0.00
5765.99
5992.31
13069.14
4657.94
17727.08
23719.39
0.14
0.14
0.00
0.00
1087.78
1087.92
(1800.24)
(354.4)
(2154.64)
(1066.72)
38
0.06
0.06
0.00
0.00
23.25
22.18
(12.11)
(7.07)
(10.83)
(4.30)

Total Liabilities
Application Of Funds
Gross Block
Less: Revaluation Reserves
Less: Accum. Depreciation
NetBlock
Capital Work In Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA,Loans&Advances
Current Liabilities
Provisions
Total CL& Provisions
Net Current Assets
Total Assets
98.40
0.00
59.97
38.43
0.00
3650.70
0.00
0.00
914.26
914.26
24265.04
2710.85
27890.15
5579.84
1250.29
6830.13
21060.02
36.94
24786.11
108.25
0.00
68.52
39.73
0.68
3952.43
0.00
0.00
2201.97
220197
26372.87
3106.12
31680.96
10514.36
1552.66
12067.02
19613.94
112.62
23719.39
9.85
0.00
8.55
1.3
0.68
301.71
0.00
0.00
1287.71
1287.41
2107.83
395.27
3790.81
4934.52
302.37
5236.9
(1446.08)
75.68
(1066.72)
10.01
0.00
14.26
3.38
0.68
8.26
0.00
0.00
140.84
140.84
85.51
14.58
13.59
88.43
24.18
76.67
(6.87)
204.87
(4.30)
INTERPRETATION
In the year 2011-2012, the investment it shows the increase for the year 2012as Rs.3952.43 (in Cr) and it
has increased by 8.26%.
Current assets has been increased was Rs.220197 (in Cr) in the year 2012 which is comparing to the
previous year and the percentage shows increase by 140.84.
During the year 2011, the shareholders fund amount to Rs.4904.39 (in Cr) it has been increased to the
amount of Rs. 5992.31 (in Cr) and percentage increased was 22.18.
Secured loans show decreased by Rs.13069.14 over the previous year of Rs.14869.38 and decrease in
percentage of 12.11.
39
Table No-4.3
3. COMPARATIVE INCOME STATEMENTOF SHRIRAM TRANSPORT COMPANY FOR
in Rs Cr
Percentage
2013
2014
Amount
Increase /
Increase /
Particulars
Decrease
Decrease
during 2013during 20132014 (In %)
2014
Income
7880.10
Sales Turnover
6558.13
1321.97
20.16
0.00
Excise Duty
0.00
0.00
0.00
788.10
Net Sales
6558.13
1321.97
20.16
8.16
Other income
5.46
3.30
60.44
0.00
Stock Adjustments
0.00
0.00
0.00
6563.59
7888.26
1324.67
20.18
Total income
Expenditures
0.00
0.00
0.00
0.00
Raw materials
0.00
0.00
0.00
0.00
Power and Fuel Cost
408.86
384.76
24.1
6.26
Employee Cost
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1689.70
1273.97
415.73
32.63
2098.56
1658.73
439.83
26.52
Total Expenses
4899.40
5781.54
882.14
18.01
Operating Profit
4904.86
5789.70
884.84
18.04
PBDIT
2870.34
3932.52
1062.18
37.00
Interest
2034.52
1857.18
(177.34)
(8.72)
PBDT
18.33
29.14
10.81
58.97
Depreciation
0.00
0.00
0.00
0.00
Other written off
2016.19
1828.04
(188.15)
(9.33)
PBT
655.57
563.83
(91.74)
(13.99)
Tax
1360.62
1264.21
(96.41)
(7.08)
Net Profit
1658.73
40
2098.56
439.83
26.51
INTERPRETATION
The comparative income statement shows total income amount increase during the year 2013-2014 was
Rs 1324.67(in Cr) and increase in percentage of 20.18.
For the year 2013-2014, the total expenses indicate Rs439.83 (in Cr) and percentage increase during the
year 2013-2014 was 26.52.
The operating profit has been increased is Rs.5781.54 (in Cr) in the year 2013 which is comparing to the
previous year was Rs.4899.40 (in Cr) and the percentage shows increase by 18.01.
The Net profit amount decreases during 2013-2014 is Rs 96.41(in Cr) and shows percentage increase by
7.08.
Table No-4.4
4. COMPARATIVE BALANCE SHEET OF SHRIRAM TRANSPORT COMPANY FOR THE
YEAR ENDED 31.03.2014
in Rs Cr
Percentage
Increase /
Particulars
Decrease
during 20132014 (In %)
2013
2014
Amount
Increase /
Decrease
during 20132014
Source Of Funds
226.91
0.0088
Total share capital
226.89
0.02
226.91
0.0088
226.89
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8046.31
15.48
Reserves
6967.85
1078.46
8273.22
15.48
Net worth
7194.74
1078.48
19563.55
9.64
Secured Loans
17842.83
1720.72
6134.44
14.51
Unsecured loans
5357.09
777.35
25697.99
10.77
Total Debt
23199.92
2498.07
30394.66
33971.21
3576.55
11.77
41

Total Liabilities
Gross Block
NetBlock
Investments
Inventories
Sundry Debtors
Loans and Advances
Fixed Deposi0ts
Current Liabilities
Provisions
Total CL&Provisions
Net Current Assets
Total Assets
131.95
0.00
71.90
60.05
0.00
3568.91
0.00
0.00
6319.33
6319.33
34884.93
0.00
41204.26
12643.02
1795.55
14438.57
26765.69
0.00
30394.65
192.46
0.00
91.80
100.66
0.00
2725.26
0.00
0.00
7085.98
7085.98
39313.79
0.00
46399.77
13689.20
1565.30
15254.50
31145.27
0.00
33971.19
60.51
0.00
19.9
40.61
0.00
(843.65)
0.00
0.00
766.65
766.65
4428.07
0.00
5195.51
1046.18
(230.25)
815.93
4379.58
0.00
3577.25
45.85
0.00
27.68
67.62
0.00
(23.64)
0.00
0.00
12.13
12.13
12.69
0.00
12.61
8.27
(12.82)
5.65
16.36
0.00
11.77
INTERPRETATION
In the year 2013-2014, the investment it shows the decrease for the year 2014 as Rs. 843.65 (in Cr) and
it has decreased by 23.64%.
Current assets has been increased was Rs.7085.98 (in Cr) in the year 2014 which is comparing to the
previous year and the percentage shows increase by 12.13.
During the year 2013, the shareholders fund amount to Rs 7194.74(in Cr) it has been increased to the
amount of Rs. 8273.22(in Cr) and percentage increased was 15.48.Secured loans shows uptrend by
Rs.19563.55 over the previous year of Rs.17842.83 and increase in percentage of 9.64.
42
4.2 Common-size Financial Statement Analysis

Table No-4.5
5. COMMONSIZE INCOME STATEMENTOF SHRIRAM TRANSPORT COMPANY FOR
Particulars
2011
2012
in Rs Cr
percentage
in Rs Cr
Percentage
Income
Sales Turnover
5230.15
100
5883.06
100
Excise Duty
0.00
0.00
0.00
0.00
Net Sales
5230.15
100
5883.06
100
Other income
199.93
3.82
2.50
0.00042
Stock Adjustments
0.00
0.00
0.00
0.00
5430.08
103.82
5885.56
100.00042
Total income
Expenditures
0.00
0.00
0.00
0.00
Raw materials
0.00
0.00
0.00
0.00
Power and Fuel Cost
358.21
6.85
369.48
6.28
Employee Cost
14.97
0.0029
27.46
0.00467
571.39
10.92
786.92
133.76
341.81
6.53
316.30
5.37
24.59
1500.16
1286.38
25.49
Total Expenses
3943.77
75.41
4382.90
74.50
Operating Profit
4143.70
79.22
4385.40
74.48
PBDIT
2271.96
43.43
2474.90
42.06
Interest
1871.74
35.78
1910.50
32.47
PBDT
10.82
0.0020
13.46
0.00228
Depreciation
11.99
0.0022
16.12
0.0027
Other written off
1848.93
35.35
1881.12
31.19
PBT
619.05
118.36
623.46
10.59
Tax
1229.88
23.51
1257.45
22.49
Net Profit
1286.38
24.59
1500.16
25.49
INTERPRETATION
The percentage of operating profit has decreased from 75.41 in 2011 to 74.50 in 20102. This is due to
increase in sales from 5230.15(in Cr) to Rs.5883.06 (in Cr).The increase in sales because due to increase
the operating expenses.
43

There is relatively less decreasing in ratio of operating profit to sales as compared to increase ratio cost
of goods sold to sales. It has been possible because of decrease in operating expenses of 2012 in spite of
increase in sales .Some arguments given decrease in ratio net profit to sales from 23.51% in 2011 to
22.49% in 2012.
In conclusion it may say that company performance has deteriorated in 2011 as compared to 2012.
Operating profit absolute amount has decreased in spite increase in sales.
Table No-4.6
6. COMMONSIZE BALANCE SHEET OF SHRIRAM TRANSPORT COMPANY THE YEAR
ENDED 31.03.2012
Particulars
2011
2012
in Rs Cr
Percentage
in Rs Cr
Percentage
Source Of Funds
0.91
Total share capital
226.18
226.32
0.94
0.91
226.18
226.32
0.94
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
18.87
Reserves
4678.21
5765.99
24.31
19.78
Net worth
4904.39
5992.31
25.26
59.99
Secured Loans
14869.38
13069.14
55.10
20.22
Unsecured loans
5012.34
4657.94
19.64
80.21
Total Debt
19881.72
17727.08
74.74
24786.11
100
23719.39
100
44

Total Liabilities
Gross Block
NetBlock
Investments
Inventories
Sundry Debtors
Loans and Advances
Fixed Deposits
Current Liabilities
Provisions
Total CL&Provisions
Net Current Assets
Total Assets
98.40
0.00
59.97
38.43
0.00
3650.70
0.00
0.00
914.26
914.26
24265.04
2710.85
27890.15
5579.84
1250.29
6830.13
21060.02
36.94
24786.11
0.40
0.00
0.24
0.15
0.00
14.73
0.00
0.00
3.69
3.69
97.90
10.94
112.52
22.5
5.04
27.56
84.97
0.15
100
108.25
0.00
68.52
39.73
0.68
3952.43
0.00
0.00
2201.97
2201.97
26372.87
3106.12
31680.96
10514.36
1552.66
12067.02
19613.94
112.62
23719.39
0.45
0.00
0.29
0.17
0. 01
16.67
0.00
0.00
9.28
9.28
111.18
13.10
133.57
44.33
6.55
50.87
82.69
0.47
100
INTERPRETATION
The current assets have increased during the financial year 2012 is 9.28% which is comparing to
2011 was 3.69% of the shriram commercial vehicle finance.

There was an increase in investment of Rs.3952.43 in the year 202 comparing to the previous
year 2013.
The current liabilities have been increased to 44.33% of the total liabilities of the shriram
commercial vehicle finance during the year 2012. The current liability was 22.5% of the total
liabilities during the year 2012.

Reserves and stock options has been increased was in the year 2012 which is Rs.5992.31 (in Cr)
comparing to the previous year and the percentage shows increase by 18.87%.
During the year 2012, the shareholders fund amount to Rs. 226.18 (in Cr) it has been increased
to the amount of Rs.226.32 (in Cr).
45

Table No-4.7
7. COMMONSIZE INCOME STATEMENTOF SHRIRAM TRANSPORT COMPANY FOR
Particulars
2013
2014
In Rs Cr
Percentage
In Rs Cr
Percentage
Income
7880.10
Sales Turnover
6558.13
100
100
0.00
Excise Duty
0.00
0.00
0.00
7880.10
Net Sales
6558.13
100
100
8.16
Other income
5.46
0.00083
0.00103
0.00
Stock Adjustments
0.00
0.00
0.00
6563.59
100.00083
7888.26
100.00103
Total income
Expenditures
0.00
0.00
0.00
0.00
Raw materials
0.00
0.00
0.00
0.00
Power and Fuel Cost
5.86
384.76
408.86
5.17
Employee Cost
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
19.42
1273.97
1689.70
21.44
2098.56
1658.73
25.29
26.63
Total Expenses
4899.40
74.70
5781.54
73.37
Operating Profit
4904.86
74.83
5789.70
73.47
PBDIT
2870.34
43.76
3932.52
49.90
Interest
2034.52
31.02
1857.18
23.56
PBDT
18.33
0.0028
29.14
0.0037
Depreciation
0.00
0.00
0.00
0.00
Other written off
2016.19
30.74
1828.04
23.19
PBT
655.57
9.99
563.83
7.155
Tax
1360.62
20.74
1264.21
16.04
Net Profit
1658.73
25.29
2098.56
26.63
INTERPRETATION
The percentage of operating profit has decreased from 74.70% in 2013 to 73.37 in 2014. This is due to
increase in sales from 6558.13 (in Cr) to Rs.7880.10 (in Cr) .The increase in sales because due to
increase the operating expenses. There is relatively less decreasing in ratio of operating profit to sales as
compared to increase ratio cost of goods sold to sales.
46
It has been possible because of decrease in operating expenses of 2014 in spite of increase in sales
.Some arguments given decrease in ratio net profit to sales from 20.74% in 2013 to 16.04% in 2014. In
conclusion it may say that company performance has deteriorated in 2013 as compared to 2014.
Operating profit absolute amount has decreased in spite increase in sales.
Table No-4.8
8. COMMONSIZE BALANCE SHEET OF SHRIRAM TRANSPORT COMPANY FOR THE
YEAR ENDED 31.03.2014
Particulars
2013
2014
In Rs Cr
Percentage
In Rs Cr
Percentage
Source Of Funds
0.75
0.67
Total share capital
226.89
226.91
0.75
0.67
226.89
226.91
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
22.92
23.69
Reserves
6967.85
8046.31
23.67
24.35
Net worth
7194.74
8273.22
58.70
57.59
Secured Loans
17842.83
19563.55
17.63
18.06
Unsecured loans
5357.09
6134.44
73.33
75.64
Total Debt
23199.92
25697.99
30394.66
100
33971.21
100
47

Total Liabilities
Gross Block
NetBlock
Investments
Inventories
Sundry Debtors
Loans and Advances
Fixed Deposits
Current Liabilities
Provisions
Total CL&Provisions
Net Current Assets
Total Assets
131.95
0.00
71.90
60.05
0.00
3568.91
0.00
0.00
6319.33
6319.33
34884.93
0.00
41204.26
12643.02
1795.55
14438.57
26765.69
0.00
30394.65
0.43
0.00
0.23
0.19
0.00
11.74
0.00
0.00
20.79
20.79
114.77
0.00
135.56
41.59
5.91
47.50
88.61
0.00
100
192.46
0.00
91.80
100.66
0.00
2725.26
0.00
0.00
7085.98
7085.98
39313.79
0.00
46399.77
13689.20
1565.30
15254.50
31145.27
0.00
33971.19
0.56
0.00
027
0.30
0.00
8.02
0.00
0.00
20.86
20.86
115.78
0.00
136.58
40.29
0.46
44.90
91.68
0.00
100
INTERPRETATION
The current assets have increased during the financial year 2014 is 20.86% which is comparing
to 2013 was 20.79% of the shriram commercial vehicle finance.
There was an decrease in investment of Rs.20241.05 in the year 2014 comparing to the year
2013.
The current liabilities have been decreased to 41.59% of the total liabilities of the shriram
commercial vehicle finance during the year 2013. The current liability was 40.29% of the total
liabilities during the year 2014.
Reserves and stock options has been increased was in the year 2014 which is Rs.8273.22 (in Cr)
comparing to the previous year and the percentage shows increase by 23.67%.
During the year 2014, the shareholders fund amount to Rs. 226.91(in Cr) it has been increased to
the amount of Rs.226.89 (in Cr).
48
4.3. Trend Analysis

Table No-4.9
9. TREND ANALYSIS OF INCOME STATEMENTOF SHRIRAM TRANSPORT COMPANY
FOR THE YEAR ENDED
PARTICULARS
Income
Sales Turnover
Excise Duty
Net Sales
Other income
Stock Adjustments
Total income
Expenditures
Raw materials
Power and Fuel Cost
Employee Cost
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other written off
PBT
Tax
Net Profit
2010
2011
2012
2013
2014
100
100
100
100
100
100
118.79
100
118.79
206.94
100
120.06
133.62
100
133.62
2.58
100
130.81
148.95
100
148
5.65
100
145.87
178.97
100
178.97
8.44
100
175.32
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
159.14
120.00
92.94
612.78
141.65
112.84
115.38
101.12
139.21
72.36
240.28
139.58
137.11
140.86
100
100
164.15
220.20
128.00
567 .05
165.19
125.41
122.11
110.15
142.09
89.97
323.04
142.00
138.09
144.01
100
100
170.94
0.00
0.00
2283.79
182.66
140.19
136.423
127.75
151.32
122.52
0.00
152.21
145.20
155.83
100
100
181.65
0.00
0.00
3029.22
231.09
165.43
160.98
175.03
138.12
194.78
0.00
138.00
124.88
144.79
100
141.65
165.19
182.66
231.09
49

INTERPRETATION
There is a continuous increase in the income till the year ending 2014.
Similarly expenses also shows as increasing trend till the year ending 2014. In five years it has
been more than double.
There has been a substantial increase in net profit till the year ending 2013.followed by a slight
downfall in the year ending 2014.
The overall performance of the Shriram commercial vehicle is satisfactory.
Table No-4.10
10. TREND ANALYSIS OF BALANCE SHEET OF SHRIRAM TRANSPORT COMPANY FOR
THE YEAR ENDED
PARTICULARS
2010
2011
2012
2013
2014
Source Of Funds
Total share capital
Reserves
Net worth
Secured Loans
Unsecured loans
Total Debt
100
100
100
100
100
100
100
100
100
100
100.28
100.28
100
100
129.62
127.63
98.00
152.47
107.70
113.13
50
100.60
100.60
100
100
159.75
155.94
86.14
141.69
96.03
106.35
100.35
100.35
100
100
193.29
187.24
117.60
162.96
125.67
136.28
100.61
100.61
100
100
222.94
215.30
128.94
186.60
139.21
152.32

Total Liabilities
Gross Block
NetBlock
Investments
Inventories
Sundry Debtors
Loans and Advances
Fixed Deposits
Current Liabilities
Provisions
Total CL&Provisions
Net Current Assets
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100.79
100
117.17
82.75
100
196.69
100
100
51.84
51.84
118.32
97.72
111.36
142.48
163.32
145.89
103.42
99.59
110.01
100
133.88
85.55
100
212.95
100
100
124.88
124.88
128.61
111.97
126.49
268.48
202.89
257.76
96.32
303.35
135.17
100
140.48
129.31
100
192.28
100
100
358.37
358.37
170.11
0.00
164.52
322.84
234.64
308.41
131.44
0.00
197.12
100
179.36
216.64
100
146.83
100
100
401.85
401.85
191.71
0.00
185.27
349.56
204.55
325.83
152.95
0.00
100
111.13
106.35
136.28
152.32
Total Assets
INTERPRETATION
There is a continuous increase in the net worth till the year ending 2014. In five years it has been
more than double.
Similarly liabilities also show as increasing trend till the year ending 2014.
There is an investment also shows as increasing trend till the year ending 2012 followed by a
slight downfall in the year ending 2013 to 2014.
There has been a substantial increase in current asset till the year ending 2014.In five years it
has been double the amount four times.
There has been a substantial increase in total asset till the year ending 2014.
The overall performance of the Shriram commercial vehicle is good.
51
4.4 RATIO ANALYSIS

4.4.1 PROFITABILITY RATIOS.
1. OPERATING PROFIT RATIO
This ratio is calculated as follows:
Operating Profit Ratio = ( Operating Profit / Sales)*100

The difference between net profit ratio and net operating profit ratio is that net operating profit is
calculated without considering non-operating expenses and non-operating incomes. If we deduct this
ratio from 100,the result will be operating ratio. Higher operating profit ratio enable the organization to
recoup non-operating expenses out of operating profits and provide reasonable return.
Table No-4.11
Operating Profit
Net Sales
Years
(Rs in Cr)
(Rs in Cr)
Ratios (In %)
2010
3494.72
4402.83
79.37
2011
3943.77
5230.15
75.40
2012
4382.90
5883.06
74.50
2013
4899.40
6558.13
74.71
2014
5781.54
7880.10
73.37
ANALYSIS:
From the above table, the ratio between operating profit ratio are 79.37%, 75.40%, 74.50%, 74.71%, and
73.41% for the years 2010,2011, 2012, 2013, and 2014 respectively
52

Chart No 4.1
Operating Profit
80
79
78
77
76
Ratio (In Percentage) 75
74
73
72
71
70
Operating Profit
2010 2011 2012 2013 2014

Years
INTERPRETATION
The Operating profit ratio of Shriram Commercial Vehicle Finance in 2010 was 79.37%, after that year
operating profit of the company 2011 to 2014 continuously decreasing percentage of operating profit
ratio. Therefore the Operating profit is decreasing. It is an not good profit margin for the company. The
company should decrease operating profit for the future.
2. NET PROFIT RATIO
It measures of management efficiency in operating the business successfully from the owners point
of view. Higher the ratio better is the operational efficiency of business concern.
Net Profit Ratio = (Net Profit After Tax / Net Sales ) * 100
53
Table No-4.12
NET PROFIT RATIO
Years
Net Profit(Rs in Cr)
Net Sales(Rs in Cr)
Ratios (In %)
2010
873.12
4402.83
19.83
2011
1229.88
5230.15
23.52
2012
1257.45
5883.06
21.37
2013
1360.62
6558.13
20.75
2014
1264.21
7880.10
16.04
ANALYSIS:
From the above table, the ratio between net profit ratio are 19.83%, 23.52%, 21.37%, 20.75%, and
NET PROFIT RATIO
Chart No 4.2
Net Profit Ratio

25
20
15
RATIO IN PERCENTAGE 10
5
0
Net Profit Ratio
YEARS
54
INTERPRETATION
The net profit is the indicative of the managements ability to operate the business with sufficient
success. In the above bar diagram it shows that the net profit ratio of Shriram commercial vehicle
finance has increased 19.83% in 2010 and 2011 23.52 but after that years 2012 to 2014 net profit of
the company is an continuously decreasing like that company is going in future faced lot of losses.
4.4.2
TURNOVER RATIO
1. CAPITAL TURNOVER RATIO

Managerial efficiency is also calculated by establishing the relationship between cost of sales or
sales with the amount of capital invested in the business.
Capital Turnover Ratio = (Sales / Capital Employed)
Table No-4.13
Capital Employed
Years
Sales(Rs in Cr)
(Rs in Cr)
Ratios(In Times)
2010
4402.83
18459.91
0.2385
2011
5230.15
19881.72
0.2631
2012
5883.06
17727.08
0.3318
2013
6558.13
23199.92
0.2827
2014
7880.10
25697.99
0.3066
55

ANALYSIS:
From the above table, the ratio between capital turnover ratio are 0.2385, 0.2631, 0.3318, 0.2827 and
0.3066 times for the years 2010, 2011, 2012, 2013, and 2014 respectively
Chart No 4.3
Capital Turnover Ratio

0.35
0.3
0.25
0.2
Capital Turnover Ratio
RATIO(TIMES) 0.15
0.1
0.05
0
2010 2011 2012 2013 2014

YEARS
INTERPRETATION
In the year 2010, the sales comparing to 2011 it is increased to 0.2631 times and it shows that efficient
methods are adopted to use the capital employed. And also increase2012 was0.3318 time then 2013 is
decreasing for 0.2827 times. Then 2014 was increasing for0.3066 times. In 2010 to 2014, which
compares to the year it indicates higher ratio of 0.3066 times. The capital of the company has utilized
efficiently comparing to 2010.
56
6. TOTAL ASSET TURN OVER RATIO.

This ratio is calculated by dividing the net sales by the value of the total asset . A high ratio is
indicator of over trading of total assets while low ratio reveals ideal capacity. The traditional
standard for the ratio is two times.
Total Assets Turnover Ratio = Sales / Total Assets
Table No-4.14
Total Assets
Years
Sales(Rs in Cr)
(Rs in Cr)
Ratios(In Times)
2010
4402.83
22302.31
0.1974
2011
5230.15
24786.09
0.2110
2012
5883.06
23719.40
0.2480
2013
6558.13
30394.65
0.2157
2014
7880.10
33971.19
0.2319
ANALYSIS:
From the above table, the ratios between total asset turnovers are 0.1974, 0.2110, 0.2480, 0.2157 and
0.2319 times for the years 2010, 2011, 2012, 2013, and 2014 respectively
Chart No 4.4
57

Total Asset Turnover Ratio

0.3
0.25
0.2
RATIO(TIMES) 0.15
Total Asset Turnover Ratio
0.1
0.05
0
2010 2011 2012 2013 2014

YEARS
INTERPRETATION
Total Asset turnover ratio of the shriram commercial vehicle finance is an 2010 is an 0.1974 times it is
the ratio is an continuously increasing the ratio But in 2013 decreasing ratio 0.2157 after that year 2014
again increasing the total asset turnover ratio of the company.
7. NET WORKING CAPITAL RATIO
Working capital ratio measures the effective utilization of working capital. It also measures the
smooth running of business. The ratio establishes relationship between cost of sales and working
capital.
Working Capital Turnover Ratio = (Sales / Net Working Capital)
Table No-4.15
58

Years
Sales(Rs in Cr)
Net Working capital
Ratios(In Times)
2010
4402.83
(Rs in Cr)
20362.76
0.2162
2011
5230.15
21060.02
0.2487
2012
5883.06
19613.94
0.2999
2013
6558.13
26765.69
0.2450
2014
7880.10
31145.27
0.2530
ANALYSIS:
From the above table, the ratio between net working capital are 0.2162, 0.2487, 0.2999, 0.2450 and
0.2530 times for the years 2010,2011, 2012, 2013, and 2014 respectively.
Chart No 4.5
Working Capital Turnover Ratio

0.35
0.3
0.25
0.2
RATIO(TIMES) 0.15
Working Capital Turnover

Ratio
0.1
0.05
0
2010 2011 2012 2013 2014

YEARS
INTERPRETATION
59

Working capital turnover ratio of the shriram commercial vehicle finance is an 2010 is an 0.2162 times
then the ratio is next two years increasing the ratio of the times .After that in 2013 decreasing the
working Capital turnover ratio .Then 2014 again increasing the ratio.
4.4.3 SOLVENCY OR FINANCIAL RATIOS:
The absolute liquidity ratio is obtained by dividing cash and marketable securities by current
liabilities. It is also called cash position ratio. When liquidity is highly restricted in terms of cash
equivalents this ratio should be calculated
Absolute Liquid Ratio =( Cash and marketable Security/ Current Liability)*100
Table No-4.16
Absolute liquid ratio
cash and bank
Current
Years
balance (Rs in Cr)
Liabilities(Rs in Cr)
Ratios(In Times)
2010
1763.33
3916.14
0.14
2011
914.26
5579.84
0.087
2012
2201.97
10514.36
0.21
2013
6319.33
12643.02
0.50
2014
7085.98
13689.20
0.52
ANALYSIS:
From the above table, the absolute liquid ratio are0.14,0.087,0.21,0.50 and 0.52 times for the years
2010,2011, 2012, 2013, and 2014 respectively.
Chart No 4.6
60

1
0.9
0.8
0.7
0.6
RATIO(TIMES) 0.5
Absolute Liquid Ratio
0.4
0.3
0.2
0.1
0
2010
2011
2012
2013
2014
YEARS
INTERPRETATION
The absolute liquid ratio of 0.75 is considered satisfactory. The ratio of the company is showing the
fluctuating trend. During the year 2011 the companys absolute liquid ratio is 0.14, then next year
decreasing .and after then again in other years it shows increasing tendency. But the liquid ratio is not in
the standard rate. From the above table it clearly shown that the company carries a small amount of cash
for the years. Since cash is the most liquid asset, a financial analyst wants to examine it effective
CURRENT RATIO
In order to measure the short-term liquidity or solvency of a concern, comparison of current assets
and current liabilities is inevitable. Current ratio indicates the ability of a concern to meet its current
obligations as and when they are due for payment.
Current Ratio = (Current asset / Current liabilities)
Table No-4.17
CURRENT RATIO
61
Years
Current Asset
Current
Ratios(In Times)
2010
(Rs in Cr)
20362.76
Liabilities(Rs in Cr)
3916.14
5.199
2011
21060.02
5579.84
3.774
2012
19613.94
10514.36
1.865
2013
26765.69
12643.02
2.117
2014
31145.27
13689.20
2.275
ANALYSIS:
From the above table, the current ratio are5.199, 3.774, 1.865, 2.117, and 2.275 times for the years 2010,
2011, 2012, 2013, and 2014 respectively.
Chart No 4.7
CURRENT RATIO
Current Asset Ratio

6
5
4
RATIO 3
2
Current Asset Ratio
1
0
2010
2011
2012
YEARS
INTERPRETATION
62
2013
2014

The standard ratio is 2:1.This ratio indicates the extent to which short term creditors are safe in terms of
liquidity of the current assets. Thus, higher the value of the current ratio, more liquidity the firm is and
more ability it has to pay the bills. But here the companys current ratio is more than 2 in the year2010,
2011, 2013, and 2014, so the ratio is standard liquid. And In 2012 it is decreased. Therefore it may be
interpreted to be sufficiently because the sale of the company is increased and also the expenses are
decreased.
2. DEBT EQUITY RATIO

The debt equity ratio is determined to ascertain the soundness of the long term financial policies of
the company and also to measures the relatives proposition of outsiders funds and shareholders
funds investments in the company.
3. Debt-Equity Ratio = ( Total Long-term Debt / Shareholders Funds )
Table No-4.18
DEBT EQUITY RATIO
Long term debts
Shareholders
Years
(Rs in Cr)
funds(Rs in Cr)
Ratios
2010
18459.91
3842.38
4.80
2011
19881.72
4904.39
4.05
2012
17727.08
5992.31
2.96
2013
23199.92
7194.74
3.22
2014
25697.99
8273.22
3.11
ANALYSIS:
From the above table, the ratio between Debt equity is 4.80, 4.05, 2.96, 3.22, and 3.11 for the years
2010,2011, 2012, 2013, and 2014 respectively.
63

Chart No 4.8
DEBT EQUITY RATIO
DEBT EQUITY RATIO

6
5
4
RATIO
DEBT EQUITY RATIO
2
1
0
2010
2011
2012
2013
2014
YEARS
INTERPRETATION
This ratio indicates the proportion of owners stake in the business. Excessive liabilities tend to cause
insolvency. The ratio is low during the period of 2012 because the company collected more money
through issuing shares. The ratio improving in other period. The general norm of this ratio is 1:1. This
means the funds provided by outsides and shareholders must be equal. Some expert suggests it is 2:1.
64

8. DEBT TO TOTAL FUNDS RATIO
Table No-4.19
Long term debts
Total funds
Years
(Rs in Cr)
(Rs in Cr)
Ratios
2010
18459.91
22302.29
0.82
2011
19881.72
24786.11
0.80
2012
17727.08
23719.39
0.75
2013
23199.92
30394.66
0.76
2014
25697.99
33971.21
0.76
ANALYSIS:
From the above table, the ratio between Debt to total fund are 0.82, 0.80, 0.75, 0.76, and 0.76 for the
years 2010,2011, 2012, 2013, and 2014 respectively.
Chart No 4.9
65
Debt To Total Fund Ratio

0.84
0.82
0.8
0.78
RATIO(TIMES) 0.76
0.74
0.72
0.7
Debt To Total Fund

Ratio
YEARS
INTERPRETATION
During the year 2010, the debt to total funds ratio is 0.82 and it was decreased. And 2011 was 0.80, 2012
was 0.75, 2013 was 0.76, and 2014 was 0.76 times again it had an increase in the companys sales
comparing to previous year.
9. EQUITY TO TOTAL FUNDS RATIO
Table No-4.20
Equity to total funds explains the relationship between equity and total funds.
Equity to Total Funds = ( Equity / Total Funds)
Equity funds
Total funds
Years
(Rs in Cr)
(Rs in Cr)
Ratios(In Times)
2010
3842.38
22302.29
0.17
2011
4904.39
24786.11
0.20
66

2012
5992.31
23719.39
0.26
2013
7194.74
30394.66
0.24
2014
8273.22
33971.21
0.24
ANALYSIS:
From the above table, the ratios between equity to total funds are 0.17, 0.20, 0.26, 0.24, and 0.2 for the
years 2010, 2011, 2012, 2013, and 2014 respectively.
Chart No 4.10
Equity To Total Funds

0.3
0.25
0.2
RATIO(TIMES) 0.15
Equity To Total Funds
0.1
0.05
0
2010
2011
2012
2013
2014
YEARS
INTERPRETATION
In the year 2010 equity to total funds ratio was 0.17 and it shows upward trend of 2011 was 0.20. In
2012 was 0.26 times, 2013 was 0.24 and 2014 was0.24. During the year 2010 to 2014 comparing to the
year equity to total funds ratio is increasing.
67
4.5 DUPOINT ANALSIS

The Du-Pont Company of USA found a system of financial analysis which has received widespread
recognition and acceptance. The Du Pont Company did not begin to use particular approach to ratio
analysis to evaluate the firms performance. Neither the Net Profit Margin nor does the Total Asset
Turnover ratio, by itself, provides an adequate measure of overall profitability. The ROI ratio or
Earning Power of invested capital provides the answer
DUPOINT ANALSIS 2014

Net Profit Ratio = Earnings Available for Equity Shareholders /Sales
= 126.21/7880.10
= 0.16
Total Assets = Current Asset Loans &advances + Net Fixed Asset
= 46399.77 +2825.99
= 49225.71
Return on Total Asset = Net Profit Ratio * Total Assets Turnover
= 0.0256
Total Liabilities = Current Liabilities and Provision + Equity Shareholders Fund
= 15254.50 + 25697.99
= 40952.49
Financial Leverage Multiplier= Total Asset / Equity Share holders Fund
=5.95
Return on Equity = Return on Total Asset * Financial Leverage Multiplier
68

= 0.1523
DUPOINT ANALSIS 2013

= 0.2015
= 46399.77 +2825.99
= 44833.22
= 0.0303
= 37637.79
= 6.631
= 0.2009
69
DUPOINT ANALYSIS 2012

= 0.2136
= 35673.12
= 0.0352
= 29794.10
= 5.593
= 0.2095
70

= 0.2352
= 31616.24
= 0.0389
= 26711.85
= 6.4465
= 0.2508
71

= 0.08475
= 26946.89
= 0.0138
= 23141.58
= 7.0130
= 0.0967
72
Table No 4.21
RETURN ON EQUITY
YEAR
2010
2011
2012
2013
2014
RATIO(In %)
09.67
25.08
20.95
20.09
15.23
ANALYSIS:
From the above table, the ratio Return on equity Ratio are 79.37%, 75.40%, 74.50%, 74.71%, and
Chart No 4.12
73
RETURN ON EQUITY
30
25
20
RATIO (IN PERCENTAGE)
15
RETURN ON EQUITY
10
5
0
YEAR
INTERPRETATION
The Return on Equity of Shriram Commercial Vehicle Finance in 2012 was 25.08%, increasing after that
year return on equity of the company 2012 to 2014 continuously decreasing percentage of return on
equity ratio. Therefore the return on equity is decreasing. It is a not good profit margin for the company.
The company should decrease return on equity for the future.
74
Chapter 5
SUMMERY OF FINDINGS
5.1 FINDINGS
The Operating profit ratio of Shriram Commercial Vehicle Finance is continuously decreasing
percentage of operating profit ratio. Therefore the Operating profit is decreasing. It is a not good
profit margin for the company. The company should decrease operating Expenses for the future.
Net profit ratio has increased 19.83% in 2010 and 2011 23.52 but after that years 2012 to 2014
net profit of the company is an continuously decreasing like that company is going in future
faced lot of losses.

In 2013 decreasing ratio 0.2157 after that year 2014 again increasing the total asset turnover ratio
of the company.
The absolute liquid ratio of 0.75 is considered satisfactory. The ratio of the company is showing
the fluctuating trend. But the liquid ratio is not in the standard rate.
75
The companys current ratio is more than 2 in 4 years; there for it is interpret that is standard
liquid.
On comparing balance sheet of the company the share capital shows stable position
During the period of study the total income was always more the total expenditure which is
good for the company

The analysis shows that the liabilities of the company are increasing year after year and firm
carries on a huge loss

The trend analysis shows the companys position is improving, and also its fluctuating.
This is a clear indication of overall operation is decreasing the return on equity of the company.
5.2 SUGGESTIONS
All ratio of the firm is not satisfactory. Mainly Operating profit ratio and net profit ratios are
continuously decreasing. So The Company can increase sales and reduce the expenditure for the
better profitability.
The management may take proper decisions to maintain their liquidity position in the long run.
Because current liquid ratio is not standard rate. Its an ratio is fluctuating.
The liquidity position could be strengthened by reducing the current liabilities.
The company takes step to reduce their operating cost, which should be benefit to the
organization.
The company must take necessary step to maintain the ratios at the standard level.
The trend is showing positive trend, but they have to cut down the total cost
76
5.3.Conclusion
THE STUDY ON FINANCIAL STATEMENT ANALSIS is under taken from Shriram
Commercial Vehicle Finance. This study is conducted for evaluating the financial position, operational
result and the financial progress of the organization, for finding out whether the organization is in profit
or loss. From the analysis we could find that the liquidity position of the organization is not satisfactory.
The organization should try to improve the turnover ratio of the working capital in order to increase the
sales. This will helps to increase the profitability of the organization. Though the income of the Shriram
Commercial Vehicle Finance has increased over the period in the same pace as of expenses. But the
companys has not succeeded in maintaining a reasonable profitability position. Though current assets
and liabilities (current liquidity) of the company is not so satisfactory but company has succeeded in
maintaining a stable solvency position over the years. As far as the ratio of external and internal equity is
concerned. Companys investments are also showing an decreasing trend. The profitability, efficiency
and financial soundness are not achieved throughout the analysis of five different years. So coming
years shriram commercial vehicle finance try to reduce the operating expenses and increase the sales
then company can maintain good profit in future.
77
BIBILIOGRAPHY
S.N. Maheshwari, S.K. Maheshwari, -An Introduction to Accountancy.:vikas publishers.

S.P.Jain, K.L.Narang and SimmiAgrawal- Accounting for Managers: Kalyani Publishers.
Neeti Gupta, financial management, kalyani publication.
Annual report shriram commercial vehicle finance.
www.stfc.in
Www.accounting for management.
www.wikipedia.com
78
ANNEXURE
79
PROFIT AND LOSS ACCOUNT OF SHRIRAM COMMERCIAL VEHICLE FINANCE

As On Mar 2010, Mar 2011, Mar 2012, Mar2013, Mar 2014.
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditures
Raw materials
Power and Fuel Cost
Employee Cost
Other Manufacturing Expenses
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
PBT
Tax
Reported Net Profit
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per Share Data(Annualized)
Shares in issue(lakhs)
Earnings Per Share(Rs)
(Rs. In Cr)
2014
2013
2012
2011
2010
7880.1
0.00
780.1
8.16
0.00
7888.26
6558.13
0.00
6558.13
5.46
0.00
6563.59
5883.06
0.00
588.06
2.5
0.00
5885.56
5230.15
0.00
5230.15
199.93
0.00
5430.08
4402.83
0.00
4402.83
96.61
0.00
4499.44
0.00
0.00
408.86
0.00
0.00
1689.7
2098.56
5781.54
5789.7
3932.52
1857.18
29.14
0.00
1828.04
563.83
1264.21
2098.56
0.00
158.82
26.99
0.00
0.00
384.26
0.00
0.00
1273.97
1658.73
4899.4
4904.86
2870.34
2034.52
18.33
0.00
2016.19
655.57
1360.62
1658.73
0.00
159
26.5
0.00
0.00
369.48
27.46
786.92
316.3
1500.16
4382.9
4385.4
2474.9
1910.5
13.46
16.12
1881.27
623.46
1257.45
1500.16
0.00
147.09
23.86
0.00
0.00
358.21
14.97
571.39
341.81
1286.38
3943.77
4143.7
2271.96
1871.74
10.82
11.99
1848.93
619.05
1229.88
1286.38
0.00
146.85
24.39
0.00
0.00
225.08
12.47
614.78
55.78
908.11
3494.72
3591.33
2246.79
1344.54
14.96
4.99
1324.59
451.47
373.12
908.11
0.00
136.01
22.77
2268.83
55.72
2268.64
59.98
2263.01
55.57
2261.61
54.38
2255.18
38.72
80

Equity Dividend (%)
70
70
65
65
Book Value(Rs)
964.65
317.14
264.79
216.85
BALANCE SHEET OF SHRIRAM COMMERCIAL VEHICLE FINANCE
As On Mar 2010, Mar 2011, Mar 2012, Mar 2013, Mar2014. (Rs. In Cr)
Source Of Funds
Total Share capital
Reserves
Net worth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Gross Block
Less: Revaluation Reserve
Less:Accum.Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Loans and Advances
Fixed Deposits
Total CA,Loans&
Advances
Deferred Credit
Current Liabilities
Provisions
Total CL&Provisions
Net Current Assets
Miscellaneous Expanses
Total Assets
60
170.04
2014
2013
2012
2011
2010
226.91
226.91
0.00
0.00
8046.31
8273.22
19563.55
6134.44
25697.99
33971.21
226.89
226.89
0.00
0.00
6967.85
7194.74
17842.83
5357.09
23199.12
30394.66
226.32
226.32
0.00
0.00
5765.99
5992.31
13069.14
4657.94
17727.08
23719.39
226.18
226.18
0.00
0.00
4678.21
4904.39
14869.38
5012.34
19881.72
24786.11
225.54
225.54
7.62
0.00
3609.22
3842.38
15172.48
3287.43
18459.91
22302.29
192.46
0.00
91.8
100.66
0.00
2725.26
0.00
0.00
7085.98
7085.98
39313.79
0.00
46399.77
131.95
0.00
71.9
60.05
0.00
3568.91
0.00
0.00
6319.33
6319.33
34884.93
0.00
41204.26
108.25
0.00
68.52
39.73
0.00
3952.43
0.00
0.00
2201.97
2201.97
26372.87
0.00
31680.96
98.40
0.00
59.97
38.43
0.00
3650.7
0.00
0.00
914.26
914.26
24265.04
0.00
27890.15
97.62
0.00
51.18
46.44
0.00
1856.02
0.00
0.00
1763.33
1763.33
20507.09
0.00
25044.41
0.00
13689.20
1565.30
15254.50
33971.19
0.00
33971.19
0.00
12643.02
1795.55
14438.57
30394.65
0.00
30394.65
0.00
10514.36
1552.66
12067.02
23719.4
0.00
23719.40
0.00
5579.84
1250.29
6830.13
24786.09
0.00
24786.09
0.00
3916.14
765.53
4681.67
20362.76
0.00
22302.81
81

Contingent Liabilities
3597.56
2778.43
82
65.50
7.42
8.85

Weekly Report
83
84
85
86
87
88
89
90
91
92
93

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A STUDYON

FINANCIAL STATEMENT ANALYSIS AT SHRIRAM COMMERCIAL VEHICLE FINANCE

Mr. RAVI KUMAR

Asst. Professor-Dept. of MBA

Shriram commercial vehicle finance

CAMBRIDGE INSTITUTE OF TECHNOLOGY

INDUSTRY PROFILE AND COMPANY PROFILE

COMPARATIVE INCOME STATEMENTOF SHRIRAM

COMPARATIVE BALANCE SHEET OF SHRIRAM

COMPARATIVE INCOME STATEMENTOF SHRIRAM

COMPARATIVE BALANCE SHEET OF SHRIRAM

COMMONSIZE INCOME STATEMENT OF SHRIRAM

COMMONSIZE BALANCE SHEET OF SHRIRAM

COMMONSIZE INCOME STATEMENT OF SHRIRAM

COMMONSIZE BALANCE SHEET OF SHRIRAM

TREND ANALYSIS OF INCOME STATEMENT OF

TREND ANALYSIS OF BALANCE SHEET OF SHRIRAM

OPERATING PROFIT RATIO

NET PROFIT RATIO

CAPITAL TURNOVER RATIO

TOTAL ASSET TURN OVER RATIO

NET WORKING CAPITAL RATIO

DEBT TO TOTAL FUNDS RATIO

EQUITY TO TOTAL FUNDS

ABSOLUTE LIQUID RATIO

OPERATING PROFIT RATIO

NET PROFIT RATIO

CAPITAL TURNOVER RATIO

NET WORKING CAPITAL RATIO

DEBT EQUITY RATIO

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

1.1. ABOUT THE INTERSHIP

Citech, Department of MBA

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

1.4. FINANCIAL PROGRESS

there are a number of people are interested in getting

COMMERCIAL VEHICLE FINANCE

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

To study the financial performance of Shriram Commercial Vehicle Finance.

1.8SCOPE OF THE STUDY

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

Citech, Department of MBA

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

The study is restricted for a period of five years

The analysis is based on annual reports of the company.

Citech, Department of MBA

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

2.1 INDUSTRIAL PROFILE

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

2.1.4 Commercial Vehicle Financing: Segregation by vehicle type

Citech, Department of MBA

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

2.1.5 Large Fleet Operators Small Fleet Operators

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

Commercial Vehicle Loan in India

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

Commercial Vehicle leasing in India

Citech, Department of MBA

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

A Study On Financial Statement Analysis at Shriram Commercial Vehicle Finance

Citech, Department of MBA