206

Maruti industries pvt ltd
1.1 Introduction of company
Introduction:
Maruti industries Pvt Ltd well established & professionally Management Company based at modasa is engaged in manufacturing of superior quality submersible pump. The product it manufactures has the reputation not only in the come fix maces but also at in the national level Maruti industries pvt ltd. Is well equipped with its in Boise products passes through the stringent quality test before packed & dispatch that is how the national quality standards get & the products Getregognted in national market.
1.2 HISTORY & DEVELOPMENT:
Maruti industry was setup at in 2001 with the small unit and employee at that time it produce only one range pumps but today when visited there it produce high range and low range pumps it range are as under. 0.25 to 4 H.P 0.4 TO 2.98120 in single face or double face. Company takes responsibility for provide submersible pumps at meets customer requirement and satisfaction.
Maruti Industry was established in 1985
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SHREE BANSHILAL H. GHANDHI BBA COLLEGE,
MODASA.

At that time it produces only one type pumps. Now days it produce high range & low range pumps. It produces 0.5 to 100 H.P., single and double phase pumps.
Now a day company customer.
provide pumps as the requirement of the
1.3 Name & Address of the company :
Maruti industries PVT LTD 3, G.I.D.C Ganeshpur Modasa Gujarat, India.
1.4 Establishment year of the company :
The incorporation year is 2001.
1.5 Size of the company :
Maruti industries pvt ltd. is Small Scale Company.

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Maruti industries pvt ltd 1.6 Reason For Choosing The Location:-
The plant is situated near national highway no.8 The transportation is easy available. The transportation is easy available. The available of labor is easy because of backward area.
1.7 Nature of activity :
The nature of activity of this unit is manufacturing.
1.8 Raw Materials:-
Steel body Cables like three phase & double phase Bolts & Barings Copper Cables
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Maruti industries pvt ltd 1.9 Bankers of the company :
Bank of Baroda State Bank of India HDFC bank
1.10 Managing Director:
Ramabhai Patel
1.11 Management representative:
N.H.Patel
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Maruti industries pvt ltd 1.12 Objective of company :
The main objective of this unit is profit other objective important for these unit like increase the worker standard of living expand. The maximum spend the cost sales the quality products to the customers always try to improve this products. Importing Customer Delivery. Reduction in warranty level.
Reduction in cost. Improving customer quality rating for reducing customer line.
1.13 Companys Motto:
To achieve & sustain quality of the production continuously. To provide confidence in our own organization. To provide confidence and service to our customer as well as suppliers.
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Maruti industries pvt ltd 1.14 Contribution To The Industry:-
Contribution of the unit to the industry means the contribution of the Similarity industry.
There are many industries which produce same product like maruti industries.
There are many industries which produce same product like Maruti industries is not individual produce and selling.
1.15 No. Of The Products:-
Submersible Water Pumps Submersible Pump Sets Submersible Pump Pumps & Pumping Equipment
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Maruti industries pvt ltd a)Submersible Water Pumps
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Maruti industries pvt ltd (b) Submersible Pump Sets
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(C) Submersible
Pump
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Maruti industries pvt ltd d) Pumps & Pumping Equipment
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Maruti industries pvt ltd 1.16 Avaibility Of Raw Material:-
Maruti Industry purchase raw material from the Ahmadabad and Rajkot.
1.17 Sales The Product:-
Maruti Industry sales its products to Punjab, Delhi, U.P., Haryana, Pune, Rattan and Banaskantha.
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2.1 Introduction to finance function:

Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.Financial management handling of financial affairs of the company this department controls all the financial activities receiving funds, investment decisions and day-to-day financial activity.
FIANANCE IS THE LIFE BLOOD OF ANY UNIT
Financing and accounting activities are maintaining the record of all the activities. Through that the position of company can take decision of working capital, cash management, inventory management expenses and investment decision. If the finance condition of organization is strong then prestige of the company will increase. This department is concerned with raising funds, collection and fund is most suitable and economic manager and makes it profitable as possible. Finance management is an operational function, which involves financial planning, financial forecasting and provision of finance as well as the formulation of financial policies. Authors have called it resource management. In a large organization the financial manger is the member of the firms top management charged with the responsibility of planning, organizing, performing and controlling the financial affairs of the company.
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2.2 Introduction of financial analysis
Ratios are highly important profit tools in financial analysis that help financial analysis implement plans that improve profitability, liquidity, financial structure, recording, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas.
Ratio analysis is primarily used to compare a companys financial figures over a period of time, a method sometimes called trend analysis. Through trend analysis, you can identify trends, good and bad, and adjust your business practices accordingly. You can also see how your ratios stack up against other businesses, both in hand out of your industries.
There are several considerations must be aware of when comparing ratios from one financial period to another or when comparing the financial the financial ratios of two or more companys.
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If you are making a comparative analysis of a companys financial statements over a certain period of time, make an appropriate allowance for any changes in accounting policies that occurred during the same time span.
norms.
When comparing your business with others in your industry, allow for
any material differences in accounting policies between your company and industry
When comparing ratios from various fiscal periods of companys,
inquire about the types of accounting policies used. Different accounting methods can result in a wide verity of reported figures.
Determine whether ratios were calculated before or after adjustments
were made to the balance sheet or income statement, such as non-recurring items and inventory or pro forma adjustments. In many cases, these adjustments can significantly affect the ratios.
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Maruti industries pvt ltd 2.3 Types of ratios
a) b) c) d) e) f) g) h) i) j)
Current ratio Quick ratio Inventory turn over ratio Net profit ratio Gross profit ratio Return of equity share capital Return onequity fund Selling expense ratio Intrest coverage ratio Fixed asset turnover ratio
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3.1 Subject of study:

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I prepared a report in MARUTI INDUSTRY. & subject in my report financial analysis. Financial analysis provides all the financial back ground or the company financial analysis is one type of life cycle of every organization.
3.2 Objective of study:
To know the company working capital management To analysis the NPA management to company To know the common size statement & trend analysis To know the profitability of the firm through earning per share To know how to provide dividend per share To calculating ratio analysis Evaluating profit & loss account and Balance sheet. To identify the financial condition of company To identify the structure of the company
3.3 Research methodology:
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Research methodology is focused on the casual relationship between the financial sector & real sector development. It will as a try to identify a core set for poverty reducing growth & the institutional structure that have been more successful in providing them. Focus studies with in each theme will clarity the key issues to be explored try country based research. The links between the financial sector growth & poverty reduction will be explored. At a macro level looks in at savings & overall policy environment.
Institutional level looking at the type of financial institution which is best
suited to provide appropriate financial services.
At micro level looking put terms of demand & supply for household enterprise.
3.4 Data collection:

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I prepared report in MARUTI INDUSTRY. & my subject in report is financial analysis & I have chosen primary as well as secondary method for collecting of company. Types of method: Primary method Secondary method
With the help of primary method I collect the annual report of company & received the information by company employees. With the help of secondary method I collect the data of financial techniques through publishing books as well as internet.
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SWOT ANALYSIS
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Strength Good Appraisal Skills. It has been ranked first number of for imparting better service in s.k. Location advantages. Gujarat has been ranked eight in the investment. Large client base.
Weakness Lack of centralization. Industrial development in S.K. Growing SIS Diversification in fee based activities.
Opportunity Rising profit take high interest rate deposit. Give loan in low interest rate.
Threats Increasing competition with local companys and staff.
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Increasing risk and cost of capital. Fluctuating interest rate. Inflation risk.
THE PEST ANALYSIS Its very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous.
The organization's environment is made from: The environment involve e.g. staff (or internal customers), office technology, salary, interest, and finance, etc. The micro-environment involves e.g. our external customers, agents and Money suppliers, our competitors, etc. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.
Political Factors
This arena has a huge influence upon the regulation of company and the spending power of consumers and other businesses. You must consider issues such as:
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1. How stable is the political environment? 2 government policy influence laws that regulate or tax your business?E.g. : Some laws, like the new Ley de Dependencia, gives us new oportunitys for elderly cares. 3What is the government's position on finance ethics? E.g.: during reccesion when lots of companys closed.What is the government's policy on the economy?
Economic Factors. Economic factor for the company is how many people are used this company for their regular transaction? This factor is depend on following
Sociocultural Factors. Social factor incluye that which type of service provide by company to customer .
Financial Analysis
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Maruti industries pvt ltd 1) Current ratio:

Current ratio is also known as working capital ratio as it is a measure of working capital available at a particular time. The ratio is obtained by diving current assets by the current liability. It is a measure of short-term financial strength of the business will be able to meet its current liability as and when they nature. Current ratio = Current assets Current liabilities
Year
Current assets
Current liabilities
Current ratio
2010-11 2009-10 2008-09 2007-08
2477561 2232948 2083658 2078123
1896340 1967273 1284621 1202980
1.31 1.14 1.62 1.73
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Interpretation:
The companys current ratio is constantly increase. It is like a zigzag. In the first year it is 1.31, it decrease to 1.14 in second year but then after it was increase then it is increase to 1.73. It shows that the companys has enough current assets to pay it liability.
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Maruti industries pvt ltd 2) Quick ratio :
This ratio measures the profit available to equity shareholders on per share basis. It is not the actual amount paid to shareholders as dividend but is the maximum that can be paid them. It is calculated by dividing the profit available to equity shareholders by the numbers of equity shares.
Quick ratio =
Liquid Assets Liquid liabilities
Year
Liquid Assets
Liquid liabilities
Quick ratio
2010-11 2009-10 2008-09 2007-08
2088422 1939389 1860677 1835940
1896340 1967273 1284621 1202980
1.10 0.99 1.49 1.53
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Interpretation:
It is shows that the how much Quick ratio from the company. The Quick ratio 1.53. in the first year than it decrease next year. In the last year it is increase. The company has to increase its assets for the management.
3) Net profit ratio:

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Net profit ratio is calculated on the basis of total sales of company. It shows the actual earning is made on the amount invested by the share holder.
NPR=
Net profit 100 Total sales
Year
2010-11 2009-10 2008-09 2007-08
NP
251349 248665 193155 268972
Total sales
2877434 2122397 1539640 1706074
NPR
8.74 11.72 12.55 15.77
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Interpretation:
The net profit ratio of the company is also decrees. In the first year it was 15.77, in second year it is decrease to 12.55. Up to the 3 rd year it is decrease but in 5th year it is decrease. The company has to try for the more NPR of the company. The company gets more return if its price is increase.
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Maruti industries pvt ltd 4) Gross profit ratio:

The Gross profit is shows only theoretically what a profit can get per share out of profit. But it is not the actual amount that they receive. Most of the shareholders and even potential investors are interested in actual dividend they receive in cash. Dividend per share is the amount of actual dividend paid to equity shareholders divided by the number of equity share outstanding.
GPR=
Gross profit
Total Sales
Year
2010-11 2009-10 2008-09 2007-08
Gross profit
507585 466107 353879 403397
Total Sales 2877434 2122397 1539640
GPR 17.64 21.96 22.98 23.64
1706074
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Interpretation: The Gross profit of thecompany is decrease every year. In the first year it is 23.64, then it is decrease to 22.98, then 21.96, in the tlast year it was 17.64. It shows that the Gross profit is decrease every year.
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Maruti industries pvt ltd 5) Return on equity share capital:
RESC =
Net profit 100 Equity share capital
Year
Net profit
Equity share capital
RESC
2010-11 2009-10 2008-09 2007-08
251349 248665 193155 268972
2066190 2066190 2066190 2066190
12.16 12.03 09.35 13.02
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Interpretation:
The companys return on equity shara ratio is 13.02 infirst
year. The
company will give more return to his investors. The return on equity shara ratio shows that the company is pay good return on investment. It is good for the company but the retention of the company is decrease.
6) Return on equity fund:
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The Return on equity fund is calculated on the net profit of the company. It shows the relation between the market price of the share and the earnings per share.
REF =
Net profit 100 Equity fund
Year
2010-11 2009-10 2008-09 2007-08
Net profit 251349 248665 193155 268972
Equity fund 4001330 3480378 3239225 2783345
REF 6.28 7.14 5.96 9.66
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Interpretation:
Return on equity fund is decrease in frist year. If it is goes higher than it is better for the company. The Return on equity fund of the is more it is beneficial for the owners or share holders of the company. The company Return on equity fund in the first year is 9.66, it is decrease to 5.96 in next year, from the third year it is increase at 7.14 and last year little decrease at 6.28.
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Maruti industries pvt ltd 7) Inventory to sales ratio:
Above ratios are find out on the basis of inventory, the Inventory to sales ratio is calculated on the basis of Sales.
Inventory to sales ratio =
Inventory 100 Sales
Year
Inventory
Sales
Inventory to sales ratio
2010-11 2009-10 2008-09 2007-08
381139 293559 222981 242183
2877434 2122397 1539640 1706074
13.52 13.83 14.48 14.20
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Interpretation:
The inventory to sales ratio of the company is decrease every year. It shows that the inventory of the company get sufficient return on their investment. The inventory to sales ratio is shows that the inventory. In the company first year it is 14.20, it is increase next year and in last year it is 13.52.
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Maruti industries pvt ltd 8) Selling expense ratio:

The Selling expenses ratio in business are invested in all sales jointly and sales are affected through them to earn profits. It shows the relationship between sales to fixed assets.
Selling expense ratio =
Selling expenses 100 Net sales
Year
Selling expenses
Net sales
Selling expense ratio
2010-11 2009-10 2008-09 2007-08
137347 94994 73449 70769
2877434 2122397 1539640 1706074
4.77 4.48 4.77 4.15
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Interpretation:
The company has not enough assets to pay its Selling expenses. The
Selling expenses is also decrease next year. It is increase in second year than it is
decrease and than it is increase. In the first year it is 4.15, it is increase to 4.77 in second year. Than it is decrease up to 4.48. It shows big difference in the Selling
expenses. In the last year it is 4.77 which are very less than the first year.
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Maruti industries pvt ltd 9) Intrest coverage ratio:
The Intrest coverage ratio is used to know difference between EBIT & Intrest. By Intrest coverage ratio the firm will know about the increase in the profit of the firm. Because if the EPS is increase it shows increase in profit
Intrest coverage ratio =
EBIT Intrest
Year
EBIT
Itrest
Intrest coverage ratio
2010-11 2009-10 2008-09 2007-08
382252 370805 272241 348499
83027 74775 42295 28294
4.60 4.96 6.44

12.32
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Interpretation:
The companys Intrest coverage ratio is decrees every year. It shows that the companys Intrest coverage decrees every year. The company has to take certain decision to improve its profit. The company profit is decrease every year. In the first year it is 12.32, in the second year it is 6.44, in the third year it is 4.96, and in the last year it is 4.60.
10)
Fixed assets turnover ratio:
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Fixed assets turnover ratio is mostly finding in company or other financial
institutes only. It shows the firm how much deposit it has and how many loans the firm gives to others.
Fixed assets turnover ratio =
Sales Net fixed assets
Year
2010-11 2009-10 2008-09 2007-08
Sales 2877434 2122397 1539640 1706074
Net fixed assets 1341707 1120389 764527 538732
Fixed assets turnover

2.14 1.89 2.01 3.17
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Interpretation:
The companys Fixed assets turnover ratio is decrees every year. It is increase up in last year. It shows the company has more assets. So the company has to increase its sales.
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Maruti industries pvt ltd 4.4 common size statement

Balancesheet Maruti Industry.
Particulars Liabilities Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans TOTAL LIABILITIES Mar'11 12 Months 2066190 1935140 4001330 776605 813270 5591205 Mar'10 12 Months 2066190 1414188 3480378 774260 888331 5142969 Mar'09 12 Months 2066190 1173237 3239427 525165 791391 4555983 Mar'08 12 Months 2066190 717760 2783950 246199 381853 3412002 Assets Gross Block (-) Acc. Depreciation Net Block Capital Work in Progress. Investments. Inventories 2188332 846625 13417.07 405856 3262421 389139 1841681 721292 11203.89 523215 3233690 293559 1390517 625990 7645.27 695404 2296813 222981 1083083 544352 5387.31 506496 1491027 242183
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Sundry Debtors Cash And Bank Loans And Advances Total Current Assets Current Liabilities Provisions Total Current Liabilities NET CURRENT ASSETS Misc. Expenses TOTAL ASSETS (A+B+C+D+E) 510288 742882 835242 2477561 1574069 322271 1896340 581221 0 5591205 489192 675326 774871 2232948 1690930 276343 1967273 265675 0 5142969 405520 614182 840975 2083658 1096895 187726 1284621 799037 202 4555983 363073 739731 737136 2078123 1004037 198943 1202980 875143 605 3412002
Profit & Loss - Maruti Industry.

Mar'11 Mar'10 Mar'09 Mar'08
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12 Months 12 Months 12 Months 12 Months INCOME: Sales Turnover Excise Duty NET SALES Other Income TOTAL INCOME 3124072 246638 2877434 25242 2902674 2290403 168006 2122397 24137 2146534 1712292 172652 1539640 50493 1590133 1987412 261338 1706074 1747640 1747640
Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised TOTAL EXPENDITURE Operating Profit EBITDA
133484 1881570 137641 137347 154110 - 49061 2395091 482343 507585
99133 1285569 110168 94994 134995 - 44432 1680427 441970 466107
70295 942365 93083 73449 112023 - 54961 1236254 303386 353779
73808 1055905 92674 70769 118967 - 67884 1344243 361831 403397
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Depreciation EBIT Interest EBT Taxes Profit and Loss for the Year Non Recurring Items REPORTED PAT 125333 382252 83027 299225 47876 251349 95302 370805 74775 296030 47365 248665 81638 272241 42295 229946 36791 193155 54898 348499 28294 320205 51233 268972
4750 256099
49115 297780
4785 197940
22476 291448
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FINDINGS
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The data analysis includes ratio analysis about the position of the MARUTI INDUSTRY PVT LIMITED.
On the basis of analysis, charts, etc. findings have been carried out on the position of the company and the total assets and his debt against theassest is good.
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SUGGESTIONS
There are several suggestions for improve the services:-
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(1) There is a need to improve the trustworthiness, believability and honesty of company services. This would improve the credibility in the public sector company. This can be achievement by having consistency of service.
(2) The concept of total quality management is to be introduced at each level in the company This can be very effectively achievedy going for customer surveys at regular intervals. If there are certain complain those must be addressed immediately to the satisfaction of the customer with the concept of internal marketing most of the problems could be smarted out. (4) The whole emphasis should be on providing quality services so
that the relationship with the customers can be developed.
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Bibliography
For Making this report I have used some web sites and book of the finance book which is as under:
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Books:
1) Annual report of the Maruti Industries pvt ltd...
2) Advance financial management, Forth edition, B.S.SHAH prakashan.
3) Financial management by M Y Khan & S P Jain, Forth edition, Mac. Grew hill publishing house.
4) Financial management By Prshanna Chandra, Tata Mac grew hill publishing house, Seventh edition.
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Maruti industries pvt ltd

1.1 Introduction of company

1.2 HISTORY & DEVELOPMENT:

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

Now a day company customer.

provide pumps as the requirement of the

1.3 Name & Address of the company :

Maruti industries PVT LTD 3, G.I.D.C Ganeshpur Modasa Gujarat, India.

1.4 Establishment year of the company :

The incorporation year is 2001.

1.5 Size of the company :

Maruti industries pvt ltd. is Small Scale Company.

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

1.7 Nature of activity :

The nature of activity of this unit is manufacturing.

1.8 Raw Materials:-

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd 1.9 Bankers of the company :

Bank of Baroda State Bank of India HDFC bank

1.10 Managing Director:

1.11 Management representative:

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd 1.12 Objective of company :

1.13 Companys Motto:

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd 1.14 Contribution To The Industry:-

1.15 No. Of The Products:-

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd a)Submersible Water Pumps

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd (b) Submersible Pump Sets

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd d) Pumps & Pumping Equipment

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd 1.16 Avaibility Of Raw Material:-

1.17 Sales The Product:-

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

2.1 Introduction to finance function:

FIANANCE IS THE LIFE BLOOD OF ANY UNIT

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

2.2 Introduction of financial analysis

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

When comparing ratios from various fiscal periods of companys,

Determine whether ratios were calculated before or after adjustments

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd 2.3 Types of ratios

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

3.1 Subject of study:

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd

3.2 Objective of study:

3.3 Research methodology:

SHREE BANSHILAL H. GHANDHI BBA COLLEGE,

Maruti industries pvt ltd