Executive Summary

Decision making is a fundamental part of research process. Decisions regarding that

what you want to do, how you want to do, what tools and techniques must be used for
the successful completion of the project. In fact it is the researchers efficiency as a
decision maker that makes the project fruitful for those who concern to the area of
study. The project presents the financial analysis of the Nestle India Limited. I am
presenting this hard carved effort in black and white. If anywhere something is found
not in tandem to the theme then you are welcome with your valuable suggestions.

My research project Financial analysis of Star Automobile study conducted under the
guidance of ________________________.

I believe that my project report will have been very helpful to the practical knowledge in
the field of financial analysis of any organization.
Introduction to The Topic
MEANING OF FINANCIAL ANALYSIS
Financial statement refers to such statement which contains financial information about
an enterprise. Their report profitability and the financial position of the business at the
end of the Accounting period. The term financial statement includes at least two
statements which the accountant prepares at the end of accounting period. The two
statements are:
The Balance Sheet

Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet
mirrors the financial position on a particular date in terms structure of assets, liabilities
and owner equity, and so on and the Profit and Loss account shows the result of
operations during a certain period of time in terms of revenues obtained and the cost
incurred during the year. Thus the financial statement provides a summarized view of
financial position and operations of a firm.

The first task of financial analysis is to select the information relevant to the decision
under consideration to total information contained in the financial statement. The
second step is to arrange the information in a way to highlight significant relationship.
The final step is interpretation and drawing of the interface and conclusions. Financial
Statement is the process of selection, relation and evaluation.

FEATURES OF FINANCIAL ANALYSIS

To present a complex data contained in the financial statement in simple and
understandable form.
To classify the items contained in the financial statement inconvenient and
rational groups.
To make comparison between various groups to draw various conclusions.

PURPOSE OF ANALYSIS OF FINANCIAL STATEMENTS

To know the earning capacity or profitability.
To know the solvency.
To know the financial strengths.
 To know the capability of payment of interest and dividends.
To make comparative study with other firm.
To know the trend of the business.
To know the efficiency of the management.
To provide useful information to the management.
PROCEDURE OF FINANCIAL STATEMENT ANALYSIS
The following procedure is adopted for the analysis and interpretation of financial
Statements:-

The analyst should know the plans and policies of the managements that he may
be able to find out whether these plans are properly executed or not.
The extent of analysis should determine so that the sphere of work may be
decided. If the aim is find out, Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is
to be studied then balance sheet analysis will be necessary.
The financial data be given in statement should be recognized and rearranged. It
will involve grouping the similar data under some heads. Breaking down of
individual components of the statement according to nature. A relationship is
established among financial statements with the help of tools and techniques of
analysis such as ratios, trends, common size, and fund flow, etc.
The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained which help in decision
making.
The conclusion drawn from the interpretation is presented to the management in
the form of the report.

Analyzing financial statement involves evaluating three characteristics of the company:

Its liquidity
Its profitability
Its insolvency.
A short-term creditor, such as a bank, is primarily interested in the liquidity. A long-term
creditor, such as a bondholder, however, looks to profitability and solvency measures
that indicate the companys ability to survive over a long period of time
TOOLS OF FINANCIAL ANALYSIS
Various tools are used to evaluate the significance of financial statement data. Three
commonly used tools are these
Ratio Analysis
Fund Flow Analysis
Cash Flow Analysis

RATIO ANALYSIS

Ratio analysis isnt just comparing different numbers from the balance sheet, income
statement, and cash flow statement. It means comparing the number against previous
year of other companies, the industry, or even the economy in general. Ratios look at
the relationship between individual values and relate them to how a company has
performed in the past, and its performance in the future.

RATIO

A ratio is a simple arithmetical expression of the relationship of one number to another.

It may be defined as the indicated quotient of two mathematical expressions. In simple
language ratio is one number expressed in terms of another and can be worked out by
dividing one number into another.

For example, Current assets of the firm are 5, 00,000 and Current liabilities are 2,
50,000 then the ratio of current assets to current liabilities will work out to be 2 such
type of ratio are called simple or pure ratios.

OBJECTIVE OF RATIOS

Ratios are worked out to analyze the following aspects of business organization

A) Solvency
Long term
Short term
Immediate
B) Stability
C) Profitability
D) Operational efficiency
 E) Structural Analysis
F) Effective utilization of resources
G) Leverage or external financing
FORM OF RATIO
Since a ratio is a mathematical relationship between two or more variables, accounting
figures, such relationship can be expressed in different ways as follows:-

A) As a pure ratio
For example the equity share capital of a company is Rs. 20, 00,000 & the preference
share capital is Rs. 5,00,000 the ratio of equity share capital to preference share capital
20,00,000:5,00,000=4:1

Sales

EQUITY SHARE CAPITAL

PREFERENCE SHARE
CAPITAL

B) As a rate of times
In the above case the equity share capital may also be described as 4 times that
of preference share capital. Similarly, the cash sales of a firm are Rs. 12, 00,000 &
credit sales are Rs. 30, 00,000. So the ratio of credit sales to cash sales can be
described as
2.5[30, 00,000/12, 00,000] = 2.5 times are the credit sales.
 Sales

CASH SALES
CREDIT SALES

C) As a percentage
In such case, one item may be expressed as a percentage of some other items. For
example, net sale of the firm are Rs.50, 00,000 & the amount of the gross profit is Rs.
10,00,000 then the gross profit may be described as 20% of sales [10, 00,000/50, 00,000]

STEPS IN RATIO ANALYSIS

The ratio analysis requires following steps
Calculation of ratios
Comparing the ratio with some predetermined standards.
The standard ratio may be the past ratio of the same firms industrys average
ratio or projected ratio or the ratio of the most successful firm in the industry. In
interpreting the ratio of the particular firm the analyst cannot reach any fruitful
conclusion unless the calculated ratio is compared with the predetermined
standard.

TYPES OF COMPARISONS
The ratio can be compared in three different ways

a) Cross section analysis

One of the ways of comparing the ratios of the firm is to compare them with the
ratio or ratios of some other selected firm in the same industry at the same point
 of time. The cross section analysis helps the analyst to find out as to how a
particular firm has performed in relation to its competitors. The cross section
analysis is easy to be undertaken as most of the data required for this may be
available in financial statement of the firm.

b) Time series analysis

By comparing the present performance of the firm with the performance of the
same firm over the last few years, an assessment can be made about the
progress of the firm. Time series analysis helps the firm to assess whether the
firm is approaching the long-term goals or not. The time series analysis looks for
Important trends in financial performance
Shift in trend over the years
Significant deviation if any from the other set of data.

c) Combined analysis
If the cross section & time analysis, both are combined together to study the
behavior & pattern of ratio, then meaningful & comprehensive evaluation of the
performance of firm can definitely be made. A trend of ratio of a firm compared
with the trend of ratio of the standard firm can give good results, for example,
the ratio of operating expenses to net sales for firm may be higher than the
industry however, over the years it has been declining for the firm, whereas the
industry average has not shown any significant changes.
The combined analysis shows that the ratio of the firm is above the industry
average, but it is decreasing over the years & approaching the industry average.

NATURE OF RATIO ANALYSIS

Ratio analysis is a technique of analysis and interpretation of financial statements. It is a

process of establishing and interpreting various ratios for helping in making certain
decisions. It is only a means of better understanding of financial strengths and
weaknesses of a firm. There are number of ratios which can be calculated from the
information given in the financial statements, but the analyst has to select the
appropriate data and calculate only few appropriate ratios from the same keeping in
mind the objective of analysis.
The following are the fore step involved in the ratio analysis

Selection of the relevant data depending upon

the objectives of the analysis

Calculation of the ratio from the above data

comparison of the ratio with the past ratio

Interpretation of the ratio

INTERPRETATION OF THE RATIO

The interpretation of the ratios is an important factor. The limitations of ratio analysis
should also be kept in mind while implementing them. The impact of factors such as
price level changes, change in accounting policies, etc. should also be kept in mind when
attempting to interpret ratios.

The interpretation of the ratio can be made in the following ways:

Single Absolute Ratio: Generally speaking one cannot draw any meaningful
conclusion when a single ratio is considered in isolation. But single ratios may be
studied in relation to certain rules of thumb which are based upon well proven
convention as for example 2:1 is considered to be a good ratio for current assets
to current liabilities.

Group of Ratios: Ratios may be interpreted by calculating a group of related

ratios. A single ratios supported by another related additional ratios become
more understandable and meaningful. For example, the ratio is current assets to
current liabilities to draw more dependable conclusion.
 Historical Comparison: One of the easiest and most popular ways of evaluating
the performance of the firm is to compare its present ratios with the past ratios
called comparison overtime. When financial ratios are compared over a period of
time, it gives an indication of the directions of the change and reflects whether
the firms performance and financial position has improved, deteriorated or
remained constant over a period of time.

Projected ratio: Ratios can also be calculated for further standard based upon
the projected or Performa financial statements. These future ratios may be taken
as standard for comparison and the ratios calculated on actual financial
statements can be compared with the standard ratios to find out variances, if
any. Such variances help in interpreting and taking corrective action for
improvement in future.

Inter-firm comparison: Ratios of one firm can also be compared with the ratios of
some other selected firms in the same industry at the same point of time. This
kind of comparison helps in evaluating relative financial position and
performance of the firm.

USE AND SIGNIFICANCE OF RATIO ANALYSIS

The ratio analysis is one of the most important tools of financial analysis. It is used as a
device to analyse and interpret the financial health of the enterprise.

A. Managerial use of Ratio Analysis

1. Helps in decision making: Financial statements are prepared primarily for
decision making. But the information provided in the financial statement is
not an end in itself and no meaningful conclusion can be drawn from these
statements alone. Ratio Analysis helps in making decision from the
information provided in these financial statements.

2. Helps in financial forecasting and planning: Ratio analysis is of much help in

the financial forecasting and planning. Planning is looking ahead and the
ratios calculated for a number of years work as a guide for the future.
 Meaningful conclusions can be drawn for future from these ratios. Thus, ratio
analysis helps in forecasting and planning.

3. Helps in communicating: The financial strength and weakness of the firm are
communicated in the more easy and understandable manner by the use of
ratios.

4. Helps in co-ordination: Ratios even help in co-ordination which is of utmost

importance in effective business management.

5. Helps in control: Ratios analysis even helps in making effective control of the
business.

B. Utility to share holders/ investors

An investor in the company will help to assess the financial position of the
concern where he is going to invest. His first interest will be the security of his
investment and then a return in the form of dividend or interest. For the first
purpose he will try to assess the value of fixed assets and loan raised against
them. The investors feel sufficient if the investors have sufficient amount of
assets.

C. Utility to creditors
The creditors or the suppliers extend short term credit to the concern. They are
interested to know whether financial position of the concern warrants their
payments at the specified time or not. The concern pays short term creditors out
of its current assets. If current assets are quite sufficient to meet current
liabilities then the creditors will not hesitate in extending credit facility.

D. Utility to employees
The employees are also interested in the financial position of the firm especially
profitability. Their wage increases and the amount of fringe benefits are related
to the volume of profits earned by the concern. The employees make use of
information available in financial statement.
 E. Utility to government-
Government is interested to know the overall strength of the industry. Various
financial statements published by industrial units are used to calculate ratios for
determining short term, long term and overall financial position of the concerns.
Profitability index can also be prepared with the help of ratios.

LIMITATION OF THE RATIO ANALYSIS

The ratio analysis is one of the most powerful tools of financial management. Though
ratios are simple to calculate and easy to understand, but there are number of
limitations:

Limited use of a Single ratio: A single ratio, usually, does not convey much of a
sense. To make a better interpretation a number of ratios have to be calculated
which is likely to confuse the analyst then help him in making any meaningful
conclusion.

Lack of Adequate Standards: There are no well adopted standards for all ratios
which can be accepted as norms. It renders interpretation of ratios is difficult.

Limitation of Accounting: Like financial statements, ratios also suffer from the
inherent weakness of accounting records such as their historical nature. Ratios of
the past are not necessarily true indicator of the future.

Change of Accounting Procedures: Change in the Accounting Procedures by a

firm often makes ratio analysis misleading.

Personal Bias: Ratios are only means of financial analysis and not an end in itself.
Ratios have to be interpreted and different people interpret the same ratio in
different ways.

Incomparable: Not only industries differ in their nature but also the firms of a
similar business widely differ in their size and accounting procedures, etc. it
makes comparison of ratios difficult and misleading.

Price Level Change: While making ratio analysis, no consideration is made to the
change in price levels and this makes the interpretation of ratios invalid.
 Ratios no substitute: Ratio analysis is merely a tool of financial statement.
Hence, ratios become useless if separated from the statements from which they
are compounded.

FORM OF BALANCE SHEET

Section 210 0f the companies act requires preparation of balance sheet at the end of
each trading period.

SECEDULE VI PART I

FORM OF BALLACE SHEET

Balance sheet of.as on ..

Figures Figures Figures Figures
for the for the for the for the
previous LIAILITIES current previous ASSETS current
year year year year
Rs. Rs. Rs. Rs.
SHARE CAPITAL FIXED ASSETS :

Authorizedshares of Distinguishing as far as

Rs. Each possible Between expenditure
upon.
Issued: (Distinguishing
between the various a. Goodwill
classes of capital and
stating particulars b. Land
satisfied below,
in respect of each class) c. Buildings
.shares of Rseach.
d. leaseholds

Subscribed : e. railway sidings

(distinguishing
between the various f. plant and machinery
classes of capital and
stating the particulars g. Furniture and fittings.
specified below, in
respect of each h. Development of
Class)..shares of property
Rs..each.. Rs. Called
up. i. Patents, trademarks and
( of the above shares..
shares are allotted as designs
fully paid up pursuant to
a contract without j. Livestock, and
payments being received
in cash) k. Vehicles, etc

(Under each head the original

(Of the above cost and the additions thereto
shares..shares are and deductions therefore
allotted as fully paid up during the year, and the total
by the way of bonus depreciation written off or
shares) provided Up to the End of the
year is to be stated.

Specify the source from Depreciation written off or

which bonus shares are Provided shall be allotted
issued e.g. , under the different asset
Capitalization of profits heads and deducted in
and reserves or from arriving at the value Of the
share premium Account. fixed assets.)

In every case where the

Less : Calls unpaid : original cost cannot be
ascertained, without
(1.)By Directors unreasonable expenses or
delay, the valuation Shown by
(2.)By others the books is to be given.

Add : Forfeited shares : For the purpose of paragraph,

such valuation will be the net
(Amount originally paid amount at which an asset
up any capital profit or stood in the companys books
reissue of at the commencement of this
forfeited shares should Act after deduction of the
be Transferred to capital amount previously provided
reserves.) or written off for depreciation
or diminution in value, and
Notes : where any such asset is sold,
the amount of sale proceeds
1. Terms of Shall be shown as deduction.
redemption and
conversion (if any) Where the sum have been
of any redeemable written off on a reduction of
preference capital capital or a revaluation of
are to be stated assets, every balance sheet,
together with the subsequent to the reduction
earliest date of or revaluation shall show a
redemption or reduced figures with the date
Conversion. of reduction in place of the
Original cost.
2. Particulars of any Each balance sheet for the
option on first five years subsequent to
unissued Share the date of reduction shall
Capital are to be show also the Amount of the
specified. reduction made.

3. Particulars of Similarly, where sums have

different classes of been added by writing up the
preference share assets, every balance sheet
are to be given. subsequent to such writing up
shall show the increased
These particulars are to figure with the date of
be given Along with increase in place of the
share capital. original Cost. Each balance
In the case of subsidiary sheet for the first five years
companies, the number subsequent to the date of the
of shares held by holding writing up shall also show the
company as well as by amount of increase Made.
the ultimate holding
company and its
subsidiaries shall be INVESTMENTS :
separately stated in
respect of Subscribed Showing nature of
share capital. investment s and mode of
The auditor is not valuation, for example, cost or
required to certify the market value, and
correctness of such distinguishing between-
share- holdings as
certified by the (1.)Investment in
Management. government or trust
securities.
RESERVES AND SURPLUS
: (2.)Investment in shares,
(1.)Capital Reserves Debentures or bonds.
(showing separately shares
(2.)Capital Redemption fully paid up and partly paid
Reserves. up and also distinguishing the
different classes of shares and
(3.)Share premium showing also in similar details
Account investments in shares,
debentures or bonds of
(Showing details of subsidiary companies)
its utilization in the
manner provided in (3.)Immovable properties.
Section 78 in the
Year of utilization). (4.)Investment in capital of
Partnership firms.
(4.)Other reserves
specifying the (Aggregate amount of
nature of each companys quoted
reserves and the investments and also the
amount in respect market value thereof
Thereof. shall be shown)

(Aggregate amount of
Less : Debit balance in companys unquoted
profit and loss account (if investments shall also be
any) shown)

(the debit balance in

profit and loss account CURRENT ASSETS, LOANS
shall be shown as a AND ADVANCES:
deduction from the
uncommitted reserves, if CURRENT ASSETS :
any)
(1) Interest accrued on

(5.)Surplus, i.e., balance Investments.

in profit and loss
account after (2) Stores and spare parts.
providing for
propose allocations, (3) Loose tools
namely:
Dividend, Bonus and (4) Stock in trade
Reserves
(5) Work-in-progress
(6.)Proposed addition
to reserves [in respect of (2) and
(4), mode of valuation
(7.)Sinking funds of stock shall be stated
and the amount in
(Additions and respect of raw
deductions since last materials shall also be
balance sheet to be stated separately
shown, under each of where Practicable.
the specified Heads. Mode of valuation of
The word fund in work-in-progress shall
relation to any be stated]
reserve should be
used only where such (6) Sundry Debtors.
reserves are specifically
represented by a. Debts outstanding
earmarked for
Investments.)
b. a period exceeding
six Months.
SECURED LOANS :
c. Other debts.

(1) Debentures. Less Provision.

(2) Loans and advances ( The amounts to be shown

from Banks. under sundry debtors shall
 include the amounts due in
(3) Loans and advances respect of the goods sold or
from Subsidiaries. services rendered or in
respect of other contractual
(4) Other loans and obligations but shall not
advances include the amount which are
in the nature of loans or
(loans from directors advances)
and/or managers should
be shown separately)

In regard to sundry debtors

particulars to be given
Interest accrued and due separately of-
on Secured Loans should
be included under the
appropriate sub-heads (a) Debts considered good
Under the head Secured and in respect of which
Loans. the Company is fully
secured.
The nature of security to
be Specified in each case. (b) Debts considered good
Where loans have been for which the company
guaranteed by managers holds no security other
and/or directors, a than the Debtors
mention thereof shall personal security.
also be made and also
the aggregate amount of (c) Debts considered
such loans under each doubtful or bad.
head.
Debts due by directors or
In case of debentures, other officers of the company
terms of redemption or or nay of them either severally
conversion (if any) are to or jointly with Other person or
be stated together with debts due by firms or private
earliest date of companies respectively in
redemption or which any director is a partner
conversion. or a director or a Member to
be separately stated.
UNSECURED LOANS :
 Debts due from other
(1) Fixed deposits. companies under the same
management within the
(2) Loans and advances meaning of subsections
from subsidiaries of Section 370 to be disclosed
With the names of the
(3) Short term loans and companies.
advances :
The maximum amount due by
(a) From bank. directors or other officers of
the company at any time
(b) From others. during the year to be shown
by the way of note.
(Short term loans
include those which are The provision to be shown
due for repayment not under this head should not
later than one year as at exceed the amount of debts
the date Of the balance stated to be considered
sheet. doubtful or bad and any
surplus of such provision, if
(4) Other loans and already created, should be
advances : shown at every closing under
Reserves and Surplus under a
(a) From banks. separate sub-head Reserve
for Doubtful or Bad Debts.
(b) From Others.
(7)
(Loans from directors
and/or managers should (7A) Cash balance on hand.
be shown separately
Interest accrued and due (7B) Bank balance-
on unsecured loans
should be included under (a) With scheduled banks.
an appropriate sub-
heads under the head (b) With others
Unsecured Loans
( in regard to bank balances
Where loans have been particulars to be given
guaranteed by manager, separately of-
and/or directors, a
mention thereof shall (a) The balance lying with
also be made together scheduled banks on
with the aggregate current accounts, call
amount of such loans accounts and Deposit
under each head. This accounts.
does not apply to fixed
deposits.) (b) The names of the
bankers other than the
Scheduled banks and the
CURRENT LIABILITIES balances lying with each
AND PROVISIONS: such banker on current
account, call account and
A. CURRENT deposit account and the
LIABILITIES: maximum amount
1. Acceptance outstanding at any time
during the year with each
2. Sundry Creditors such banker.

3. Subsidiary (c) The nature of the

Companies interest, if any, of any
director or his relative in
4. Advance each of the Bankers.
Payments and
unexpired LOANS AND ADVANCES :
discounts for the
portion for which 8
value has still to
be given, e.g., in (a.) Advances and loans to
the case of the subsidiaries

following b) Advances and loans to

companies :- partnership firms in
which the company
Newspapers, fire and any of its
insurance, theatres, Subsidiaries are a
clubs, banking, partner.
Steamship
companies, etc. (9) Bills of exchange

(10) Advances recoverable

 5. Unclaimed in cash or in kind or for
dividends. value to be received, e.g.,
Rates, taxes, Insurance,
6. Other liabilities (if etc
any)
(11) Balances with
7. Interest accrued customs, port trust,
but not due on etc. (where payable on
loans demand)

B. PROVISIONS
[The instructions regarding
8. Provision for sundry debtors apply to
taxation Loans and Advances also.
The amounts due from other
9. Proposed companies under the same
dividends. management within the
meaning of sub-section (1B) of
10. For contingencies. section 370 should also be
given with the names of the
11. For provident fund companies;
the maximum amount due
Scheme. from every one of these at any
time during the year must be
12. For insurance. shown]

13. Other provisions.

A foot-note to the MISCELLANEOUS
balance sheet
may be added to show EXPENDITURE
separately
:- (to the extent not written off
(1) Claims against the or adjusted)

(2) company not (1) Preliminary expenses.

Acknowledged as (2) Expenses including

debts.
commission or brokerage
(3) Uncalled liabilities or underwritten or
 on Shares partly
paid.
(4) Arrears of fixed
(5) Cumulative
dividends.
(The period for which the
dividend is in arrear or if
there is more than one
class of shares, the
dividend on each such
class that is in arrear,
shall be stated. The
amount should be stated
before deduction of
income tax, except that
in case of tax-free
dividends the amount
shall be shown free of
income tax and the fact
that it is So shown shall
be stated.)
(6) Estimated amount
of Contracts
remaining to be
executed on
capital account
and not provided
for.
Subscription of shares or
Debentures.
(3) Discount allowed on
the Issue of shares or
debentures.
(4) Interest paid out of
capital during
construction( also
stating the rate of
interest)
(5) Development
expenditure not
adjusted.
(6) Other sums (specifying
natured)
PROFIT AND LOSS ACCOUNT
(show here the debit balance
of profit and loss account
carried forward after
deduction of the
uncommitted reserves, if any)

(7) Other company

for which the
company is
contingently
liable.
COMPANY PROFILE

COMPANY PROFILE:

BAJAJ AUTO LTD(A JOURNEY FROM HAMARA BAJAJ TO DISTINCTLY

AHEAD)

Executive summer

The Bajaj Group was founded in 1926 by Jamnalal Bajaj and now
consists of 27 companies. In 1945, Jamnalal Bajaj had formed
M/sBachraj Trading Corporation Private Limited, the flagship company,
to sell imported two-wheelers and three-wheelers. The company
acquired a license from the government in 1959 to manufacture these
vehicles and went public the next year. By 1977, the company saw its
plant rolling out 100,000 vehicles in a single year. In another nine years,
Bajaj Auto could produce 500,000 vehicles in a year. The present
Chairman of the Bajaj group, Rahul Bajaj, took charge of the business in
1965. He was the first licensee of the Indian make of the Italian Vesper
scooter. Japanese and Italian scooter companies began entering the
Indian market in the early 1980s. Although some boasted superior
technology and flashier brands, Bajaj Auto had built up several
advantages in the previous decades. Its customers liked the durability
of the product and the ready availability of maintenance; the
company's distributors permeated the country. By 1994-95, Bajaj was
racing to beat Honda, Suzuki and Kawasaki in the two-wheeler segment
internationally. By 1997, Bajaj faced tough competition in the domestic
market and its market share stood at 40.5%. Under the leadership of
Rahul Bajaj, the turnover of Bajaj Auto has gone up from Rs.72 million
to Rs.46.16 billion(USD 936 million), its product portfolio has expanded
from one to many and the brand has found a global market. Bajaj as a
brand is well-knownacross several countries in Latin America, Africa,
Middle East, South and South East Asia. The company has a network of
498 dealers and over1,500 authorized service centers and 162 exclusive
three-wheeler dealers spread across the country. Bajaj has identified a
segment of customers called 'Providers', who are knowledgeable about
motorbikes and appreciative of contemporary technology. They are
trendsetters and very choosy about what they ride. Hence, Providers
need to be addressed in a meaningful way that goes beyond the
product. Bajaj Auto is in the process of setting up a chain of retail stores
across the country exclusively for high-end, performance bikes. These
stores are called Bajaj Prebaking". Fifty two such stores have been
opened across India. Catering to demand in this sector requires a strong
and effective distribution network as consumers are more demanding
and expect delivery on time. Early delivery is a cause delight for
customers. With such vast global and Indian rural presence, designing
an efficient distribution system becomes a complex task even for a
company like Bajaj Auto. Lot of time and effort goes into designing a
strategy based efficient distribution system. Bajaj Auto is a major Indian
automobile manufacturer started by a Rajasthani merchant. It is world's
fourth largest manufacturer of two-wheelers and India's second largest
two wheeler manufacturer and the worlds 4th largest two- and three-
wheeler maker. It is based in Pune,Maharashtra, with plants in Akurdi
and Chakan (Pune), Waluj (near Aurangabad) and Pant agar in
Uttaranchal.Bajaj Auto makers and exports motor scooters,
motorcycles and the auto rickshaw. The company, headed by Rahul
Bajaj, is worth more than US$1.5 billion. Bajaj Auto came into existence
on November 29, 1945 as M/s Bachraj Trading Corporation Private
Limited. It started off by selling imported two- and three-wheelers in
India. In 1959, it obtained license from the Government of India to
manufacture two- and three-wheelers.
Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

Pradeep Shrivastava President (Engineering)

Poor

Rakesh Sharma CEO (International Business)

R C Maheshwari CEO (Commercial Vehicles

S Sridhar CEO (Two Wheelers)

Abraham Joseph President

(Research & Development)

Eric Vas President (New Projects)

C P Tripathi Vice President (Corporate)

Kevin Dos Vice President (Finance)

K Srinivas Vice President

(Human Resources)
N H Hingorani Vice President (Commercial)

S Ravikumar Vice President

(Business Development)

Quick facts:

Founder Jamnalal Bajaj

Year of Establishment 1926

.

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Presence Distribution network covers 50

countries. Dominant presence in Sri
Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and
Indonesia

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi Pune - 411035 India Tel.:

+(91)-(20)-27472851 Fax: +(91)-(20)-
27473398
Star Sales and Service
Address: 30.31, Johnson Tower, Opp. Maharishi School,

Rampur, Jabalpur, Madhya Pradesh 482001

Phone: 086022 76884

Pulsar 220 DTSI
Two Wheeler Industry: An Overview

The Indian two-wheeler industry has witnessed spectacular growth in

the last few years. The market dynamics of the industry has
substantially changed with a majority of the customers preferring bikes
to scooters and mopeds. This is primarily due to better fuel efficiencies,
dynamics, looks and longer product lives of motorcycles. The
motorcycle segment constitutes about 81.5% of the two wheeler
market in India1. It also contributes to three-fourths of the total
exports in the two wheeler industry. Exhibit 1 shows that is Hero Honda
the second largest player in this segment after Bajaj.
Opinion Percentage

BAJAJ AUTO 41%

HERO HONDA 27%

TVS 18%

OTHER 14%
 0.5

0.4 41%

0.3
27%
Series1
0.2
18% Series2
14%
0.1

0
0 1 2 3 4 5 6 7
-0.1

The industry exhibits some degree of collusive behavior and thus

represents an oligopolistic form of market structure. Product and brand
differentiation are seen as the primary means of sustaining competitive
advantage. In order to sustain brand equity, players spend large
percentages of their revenues in advertising and brand building
activities. The supply and distribution networks are decisive factors in
staying competitive and normally need a huge capital investment. The
two wheeler industry is capital intensive with large fixed cost
requirements and new model introductions mandatory at frequent
intervals in order to sustain the demand. This involves substantial
design and R&D costs. Such high fixed costs can be offset only by
achieving economies of scale. Moreover, developing a distribution
channel is extremely difficult in a country like India. Therefore, it is
difficult for a new player to enter this industry.
Motorcycles

Bajaj Autos sale of motorcycles by volume grew by 24.4 per cent

in2006-07 - which was significantly greater than that of the industry
Consequently, the Company has continued to increase its market share
in motorcycles, which stands at 33.5 per cent in 2006-07, compared
to30.8 per cent in 2005-06.As in the previous year, this Management
Discussion and Analysis analyses the performance of Bajaj within
different broad segments of the

motorcycle industry:

1. The high performance segment: This includes motorcycles in the

engine class of 150 cc and above. Bajaj Auto competes here with the
Pulsar range and Avenger DTS-i.

2. The 125 cc segment: Bajaj Auto competes in this category with

Discover DTS-i 125 and the recently launched Discover DTS-i 135.

3. The 100 cc segment: Here, Bajaj Auto competes with the Discover
110, Platina and the CT-100.
Bajaj Platina 100cc Baja Platina is
a bike built by the Bajaj Auto. Baja
Platina borrows extensively from
the Bajaj Wind and Bajaj CT 100
models. The 100 CC Platina was
introduced in the year 2006.

Bajaj Platina 125 DTS-Si

The the Platina 125 DTS-Si was

introduced in 2008 it comes with
a higher engine displacement and
ispowered by Bajajs own
patented

DTS-Si technology.
Bajaj Discover 135 DTS-I The
added engine power gives the

Bajaj Discover 135 cc greater

performance edge over 125 cc

alternatives with the looks of a

125 cc machine. Digital Twin
Spark Ignition(DTS-I) provides
better combustion, power, and
mileage. The electric start

without a kick works like a charm

Bajaj Pulsar 150 DTSi4 stoke, DTS-i

150 cc have telescopic

front suspension with anti

frictionbushes. Legendary DTS-i
technologywith proven track
record for more power, more
mileage
Bajaj Pulsar 180 DTSi Split seats,
Clip on handle bar, Anti

scratch tank pad, Two piece grab

rail, Aerodynamic tank flaps, Wolf
eyed headlamps L.E.D tail lamp,
Black

styling, Kick less start

Bajaj Pulsar 220 DT-SiA new

Pulsar model, the 220DTS-i which
has a constant-velocity

carburetor instead of fuel

injection, isthe successor to the
fuel injected 220DTS-Fi.[ DTS-Fi
production and distribution was
halted in2009.
 Bajaj Avenger 200 DTS i

The new Bajaj Avenger 200 DTS i

offers a good cruising experience
with its low-slung rider seat,
phenomenal

brake system, advanced engine

and gear box. The 5-speed
gearbox and anent oil-cooler
ensure lowered temperatures.

MISSION

Focus on value based manufacturing

Fostering team work & enhancing the capability of the team

Continual Improvement

Total elimination of wastes

Pollution free & safe environment

VISION

To attain World Class Excellency by demonstrating Value added

products to customers

OBJECTIVE

Bajaj Limited is to cater the market needs of transportation by

providing 2 wheeler and 3 wheeler vehicles. BALW has been producing
the catalogue products to cater to the changing market requirements.
Based on the customer feedback, improvements are being made
continuously in the existing products.

GOAL

To catapult Bajaj Auto as the countrys largest automobile company.

Let's analyze the position of Bajaj in the current market set-up,
evaluating its strengths, weaknesses, threats and opportunities
available.

Strengths:-

Highly experienced management. Product design and development

capabilities. Extensive R & D focus. Widespread distribution network.
High performance products across all categories. High export to
domestic sales ratio. Great financial support network (For financing the
automobile) High economies of scale. High economies of scope.

Weaknesses:

Hasn't employed the excess cash for long. Still has no established brand
to match Hero Honda's Splendor in commuter segment. Not a global
player in spite of huge volumes. Not a globally recognizable brand
(unlike the JV partner Kawasaki) Threats: The competition catches-up
any new innovation in no time. Threat of cheap imported motorcycles
from China.
Margins getting squeezed from both the directions (Price as well as
Cost) TATA Ace is a serious competition for the three-wheeler cargo
segment.

Opportunities:-
Double-digit growth in two-wheeler market.

Untapped market above 180 cc in motorcycles.

More maturity and movement towards higher-end motorcycles.

The growing gearless trendy scooters and scooterette market.

Growing world demand for entry-level motorcycles especially in

emerging market

THREATS

The competition catches-up any new innovation in no time.

Threat of cheap imported motorcycles from China.

a

Objective of the study

To conduct financial analysis of Star Automobiles

To understand the strong hold of Star Automobiles Jabalpur.

To find out the competitive advantages of Star Automobiles

To know the earning capacity or profitability.

 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

MEANING

Research Methodology is a strategy that guides a researcher in providing answers to the research
questions and for this research survey is done. A research design is the specification of methods
and procedure for acquiring the information needed it is the overall operational pattern framework
of the project that stipulates what information is to be collected from which sources by what
procedure. If it is a good design, it will ensure that the information obtained is relevant to the
research questions and that is was collected by objective and commercial procedure.

Research in common parlance refers to a search for knowledge. Research is an

academic activity and as such the term should be used in a technical sense. According to Clifford
Woody Research comprises, defining and redefining problems formulating hypothesis,
collecting, organizing and evaluating data, making deductions and reaching conclusion. And at
last, carefully testing the conclusions to determine whether they fit the formulating hypothesis.
The researcher has to decide the method to be used which helps him to get a desired direction in
a systematic way. This study was done in the following manner:

DATA COLLECTION

Data was gathered from various departments and also from the auditor report, Annual
reports etc. also by discussion and interaction with employees and various executives of the
relevant departments and by observation. The bulk of the relevant information was gathered by
going through the files of the workers which obtained various aspects.

DATA COLLECTION METHOD

Secondary method

This was done by referring to the literature available i.e. financial reports, journal,
magazines, websites etc.
DATA ANALYSIS AND INTREPRETATION

After data was collected it was analyzed to get a meaningful detail. Then, according to the
analysis interpretations and evaluations were made that what are the strong and weak points of
the collected data or the details gathered or current system of information of the human
resources.

This report is based on secondary data, one of the most important users of research methodology
is that it helps in identifying the problem, collecting, analyzing the required information data and
providing an alternative solution to the problem .It also helps in collecting the vital information
that is required by the top management to assist them for the better decision making both day to
day decision and critical ones.

Data sources:
Research is totally based on Secondary data, it can be used only for the reference. Research has
been done by secondary data collection and has been collected by interacting with various people
and through various journals and websites.

Sampling procedure:
The sample was selected from account professional of Star Automobile, Jabalpur. It was also
collected through personal visits to different dealers of the company by formal and informal talks
and through the deep study of financial documents been provide by them. The data has been
analyzed by using mathematical/Statistical tool.

Sample size:
The sample size of my project is limited to the financial reports and journals of Star Automobile
since the study was based on secondary data.

Sample design:
Data has been presented with the help of pie charts and tables.
DATA ANALYSIS AND INTERPRETATION
Profit and Loss Statement 2016

M/s STAR SALES AND SERVICES

TRADING AND PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31/3/16
PARTICULARS AMOUNT PARTICULARS AMOUNT AMOUNT
2740250.0
To Opening Stock 0 By Sales

Sale Of Spare& Oil 838497.2

To Purchase 14% 7
703272.2 9334263. 10172760.
Purchase Spare 14% 2 Sale Vehicle 14% 02 29
161297.3
Purchase Spare 15% 2
Purchase Spare 5% 5207.68 By Direct Income
By Income From
Purchase Tax Free 7819.00 Servicing 223995.00
9319558. 10197154.
Purchase Vehicle14% 43 65

To Direct Exp.
3627480.0
To Petrol Expense 11919.00 11919.00 By Closing Stock 0
[Valuation of Closing
Stock
1074911.6 as certified by the
To Gross Profit c/d 4 partner
has been accepted
by us]
14024235. 14024235.
29 29
To Indirect Exp.
1074911.6
To Accounting Fees 30000.00 By Gross Profit b/d 4
To Advertisement Expenses 13141.99
To Annual Information
Charges 1200.00 By Indirect Income
To Audit Fee 8000.00 By Discout Received 4087.00
To Bank Charges 3182.14 By Insurance Claim 7129.00
To Computer Maintainace
Expenses 2490.00 By Interest On FDR 59694.00
To Consultancy Fees 16000.00 By Other Income 244879.35
By Prior Period
To Depreciation 15415.65 Income 3828.00
To Discount 10224.78
To Electricity Expense 26830.00
To Godown Rent 25000.00
To Interest On Sale Tax 1448.00
To Interest To Bank 70628.00
To Interest To Others 7600.00
To Misc. Exp. 44300.00
To Mobile Phone Exp. 7664.77
To Nagar Niagm License
Fee 3770.00
To News paper Expense 860.00
To Office Maintainance Exp 42122.21
To Pollution License Fee 1500.00
To Printing & Stationary Exp. 4379.00
To Professional Tax 2500.00
To Rent Expense 276000.00
To Repair & Maintainance
Expense 18874.00
To Salary 269364.00
To Society Expense 15000.00
To Stamp Charges 4034.00
To Net Profit C/f 473000.45
1394528.9 1394528.9
9 9

To Interest on Capital By Net Profit B/f 473000.45

112298.3
1. Rai. 7
2. Ubnare 82985.04 195283.41

To Salary to Partners
105000.0
1. Rai. 0
105000.0
2. Ubnare 0
210000.00
To Net Profit
1. Rai. 33858.52
2. Ubnare 33858.52 67717.04

473000.45 473000.45
Profit and Loss Statement 2017
M/s STAR SALES AND SERVICES
TRADING AND PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31/3/16
PARTICULARS AMOUNT PARTICULARS AMOUNT AMOUNT
To Opening Stock 2740250.00 By Sales

Sale Of Spare& Oil

To Purchase 14% 838497.27
9334263.0 10172760.2
Purchase Spare 14% 703272.22 Sale Vehicle 14% 2 9
Purchase Spare 15% 161297.32
Purchase Spare 5% 5207.68 By Direct Income
By Income From
Purchase Tax Free 7819.00 Servicing 223995.00
9319558.4 10197154.6
Purchase Vehicle14% 3 5

To Direct Exp.
To Petrol Expense 11919.00 11919.00 By Closing Stock 3627480.00
[Valuation of
Closing Stock
as certified by the
To Gross Profit c/d 1074911.64 partner
has been accepted
by us]
14024235.2 14024235.2
9 9
To Indirect Exp.
By Gross Profit
To Accounting Fees 30000.00 b/d 1074911.64
To Advertisement
Expenses 13141.99
To Annual Information By Indirect
Charges 1200.00 Income
By Discout
To Audit Fee 8000.00 Received 4087.00
By Insurance
To Bank Charges 3182.14 Claim 7129.00
To Computer Maintainace By Interest On
Expenses 2490.00 FDR 59694.00
To Consultancy Fees 16000.00 By Other Income 244879.35
By Prior Period
To Depreciation 15415.65 Income 3828.00
To Discount 10224.78
To Electricity Expense 26830.00
To Godown Rent 25000.00
To Interest On Sale Tax 1448.00
To Interest To Bank 70628.00
To Interest To Others 7600.00
To Misc. Exp. 44300.00
To Mobile Phone Exp. 7664.77
To Nagar Niagm License
Fee 3770.00
To News paper Expense 860.00
To Office Maintainance 42122.21
Exp
To Pollution License Fee 1500.00
To Printing & Stationary
Exp. 4379.00
To Professional Tax 2500.00
To Rent Expense 276000.00
To Repair & Maintainance
Expense 18874.00
To Salary 269364.00
To Society Expense 15000.00
To Stamp Charges 4034.00
To Net Profit C/f 473000.45
1394528.99 1394528.99

To Interest on Capital By Net Profit B/f 473000.45

1. Rai. 112298.37
2. Ubnare 82985.04 195283.41

To Salary to Partners
1. Rai. 105000.00
2. Ubnare 105000.00
210000.00
To Net Profit
1. Rai. 33858.52
2. Ubnare 33858.52 67717.04

473000.45 473000.45
Balance Sheet 2016
M/s STAR SALES AND SERVICES

BALANCE SHEET AS ON 31ST MARCH 2016

LIABILITIES AMOUNT AMOUNT ASSETS AMOUNT AMOUNT

PARTNER'S CAPITAL A/C FIXED ASSETS 99126.35

[As per schedule
A] 3262763.44 [As per Schedule F]

CURRENT ASSETS, LOANS &

LOANS & BORROWINGS ADVANCES
BOI 380791.58
Deposits(Assets) 729440.31
Unsecured
Loan [As per Schedule B]
[As per Schedule
C] 642006.23
TDS 8280.00
CURRENT LIABILITIES &
PROVISIONS 4285561.25 4746770.88
Advance Income Tax 15000.00
0.90
Provisions Vat Receivable 23363.22
[As per Schedule
D] 47370.00
Sundry Debtor 244081.00
Sundry
Creditors 431957.02 [As per Schedule G]
[As per Schedule
F] 479327.02
Stock in Trade 3627480.00
[Valuation of Closing
Stock 4647644.53
as certified by the
proprietor
has been accepted by
us]

CASH AND BANK BALANCES

Cash in hand 18117.39
18117.39

4764888.27 4764888.27
Balance Sheet 2017

STAR SALES AND SERVICES

0

BALANCE SHEET AS ON 31ST MARCH 2017

LIABILITIES AMOUNT AMOUNT ASSETS AMOUNT

PARTNER'S CAPITAL A/C FIXED ASSETS

[As per schedule
A] 4629403.55 [As per Schedule F]

Unsecured Loan CURRENT ASSETS, LOANS & ADVANCES

[As per Schedule
C] 142006.23
Deposits(Assets) 791082.31
CURRENT LIABILITIES & PROVISIONS [As per Schedule B]
4771409.78
Provisions TDS 6521.00
[As per Schedule
D] 48863.30
Sundry Debtor 543517.40
Sundry
Creditors 143834.10 [As per Schedule G]
[As per Schedule
F] 192697.40
Stock in Trade 3500445.00
[Valuation of Closing
Stock
as certified by the
proprietor
has been accepted by us]

CASH AND BANK BALANCES

Cash in hand 7272.82
BOI 31074.99

4964107.18
CURRENT RATIO

Current ratio may be defined as the relationship between current assets and current
liabilities. This ratio also known as working capital ratio is a measure of general liquidity
and is most widely used to make the analysis of a short-term financial position or
liquidity of a firm. It is calculated by dividing the total of current assets by total of the
current liabilities.

Current Assets
Current Ratio =
Current liabilities

CURRENT ASSETS CURRENT LIABILITIES

1 Cash in hand 1 Outstanding Expenses/Accrued expenses

2 Cash at bank 2 Bills Payable

3 Marketable securities 3 Sundry Creditors

4 Short-term investments 4 Short-term advances

5 Bills Receivables 5 Income-tax payable

6 Sundry Debtors 6 Dividends Payable

7 Inventories (stock) 7 Bank Overdraft

8 Work- in-progress

9 Prepaid Expenses

INTERPRETATION OF CURRENT RATIO

A relatively high current ratio is an indication that the firm is liquid and has the ability to
pay its current obligations in time as and when they become due. On the other hand, a
relatively low current ratio represents that the liquidity position of the firm is not good
and the firm shall not be able to pay its current liabilities in time without facing
difficulties. An increase in the current ratio represents the improvement in the liquidity
position of a firm while a decrease in the current ratio indicates that there has been
deterioration in the liquidity position of the firm.
COMPARATIVE ANALYSIS OF YEARLY FINANCIAL REPORTS

CURRENT RATIO FOR LAST TWO YEARS

Year 2016 2015

Current Assets 4746770.88 4841565.71

Current Liabilities 4285561.25 4771409.78

Current Ratio 0.90 0.98

4900000
4841565.71

4800000 4771409.78
4746770.88

4700000

4600000

4500000
Current Assets
4400000 Current Liabilities

4285561.25
4300000

4200000

4100000

4000000
Year 2016 Year 2015

The current ratio for the company in the year 2016 was 0.90 and for the year 2015 was
0.98 So the current ratio for the firm has increased by 0.08 which indicates that the
companys liquidity position is increasing. The main reason for this is the rise in the
current Assets of the company from 4746770.88 To 4841565.71.There are sufficient
funds to pay liabilities.
QUICK RATIO

Quick Ratio, also known as Acid Test or liquidity ratio, is the most precise test of liquidity
than the current ratio. The term liquidity refers to the ability of the firm to pay its short
term obligations as and when they become due. The two determinant of current ratio,
as a measure of liquidity, are current assets and current liabilities.

Quick assets
Quick ratio =
Current liabilities

Quick/ liquid Assets Current liabilities

Cash in hand Outstanding or Accrued expenses

Cash at Bank Bills Payable

Bills Receivable Sundry Creditors

Sundry Debtors Short term advances

Marketable Securities Income tax payable

Temporary investment Dividends Payable

INTERPRETATION OF QUICK RATIO

Usually, a high acid test ratio is an indication that a company is liquid and has the ability
to meet its current or liquid liabilities in time and on the other hand a low quick ratio
represents that the companys liquidity position is not good.

QUICK RATIO OF FOR LAST TWO YEARS

YEAR 2016 2017

QUICK ASSETS 3,578,213 3,630,415

CURRENT LIABILITIES 4,223,846 11,847,828

QUICK RATIO .251 .306

Hence the quick ratio of the company in 2016 was .251 and 2017 was .306 shows that
the quick ratio of the company has decreased by .55 because the company has
purchased assets by the bank balance as the company has not taken any loan during the
year so the quick ratio of the company decreased.

14,000,000
11,847,828
12,000,000

10,000,000

8,000,000

6,000,000
4,223,846
3,578,213 3,630,415
4,000,000

2,000,000

0
FY 2016 FY 2017
 INVENTORY TURNOVER RATIO FOR LAST TWO YEARS

YEAR 2011 2010

Cost of goods sold 16465167 13563778

Average Inventory at cost 2660840.5 2444844

Inventory turnover ratio 6.18 times 5.54 times

 Findings

The quick ratio of the company in 2016 was .251 and 2017 was .306 shows that
the quick ratio of the company has decreased by .55 because the company has
purchased assets by the bank balance as the company has not taken any loan
during the year so the quick ratio of the company decreased.

The Inventory conversion period has shifted from 66 days in 2016 and 59 days in
2011 which shows that the company is efficiently managing their stock and its
inventory turnover has also increased which shows that there is rise in sale.

There is no much difference in the net profit ratio of year 2016 and year 2017 as
the net profit and the sale has increased in the same proportion so there is not
much difference in the net profit ratio of the company.

The Indian automobile industry is estimated to be worth over INR 8, 80,000

crores.

Dividend payout ratio is over 70 % in last 20 year

 Suggestions
ZCL must increase its liquidity position for paying its short term obligation, because its
margin of safety is very less from investor point of view.

In yester years company suffered from cash problem. So Star Automobile should
consider in this area also.

The high leverage ratio would lead inflexibility in the operations of the firm, as creditors
would be able to borrow funds only under restrictive conditions; a firm faces difficulty in
raising funds in future.

The proprietary ratio is less than 1 or 50%. This low value of ratio indicates the unsound
financial position of company. It is not good for long term prospect. Company has to take
certain steps to equity portion of this ratio.

ZCL has more equity than its long term debts but it reduced in later years, so company
should concentrate on this.

The company should be moving ahead with strong performance and well conceived
strategies for expansion, diversification and corporate transformation.

The company should be better utilization of human resources and improvement in work
culture and productivity. Employees were motivated through competition, prizes and
incentives declared by the company from time to time

Inventory is slow moving item. There is still a possibility of reduction in its holding days
for Star Automobile the large part of current assets is in the form of inventory.
 Conclusion

The companys overall is at a very good position. The company achieves sufficient profit

in past two years. The company maintains low liquidity to achieve the high profitability.

The company distributes dividend every year to its shareholders.

The company grew significantly during these years. There were many new products and

services that were launched during this time. The company enjoys monopoly in various

products, i.e. significant is the name of Star Automobiles this section. Increased demand

of products helps the company remain strong. The changing lifestyle and concepts of

Indians have contributing much to the growth of the company.

 Limitations of the Study
The time period provide for the project was not sufficient enough to gather data
for a big organization.

Complexity to gaining information.

Non-availability of the most recent statistical data.
Because of the limitation of information, some assumptions were made. So there
may be some personal mistake in the report.
Besides this, it was very difficult to carry out the whole analysis on the basis of
limited scope of study.
 Bibliography
Rustagi R.P.-Financial Management (Galgotia, 2000, 2nd revised ed.)
Jain S.P. , Narang K.L.-Accounting and financial analysis (Kalyani,
2008 edition.)
Gupta Shashi K, Sharma R.K.-Financial Management
Shukla M.C. , Grewal T.S.-Advanced Accounts
Annual Report of Star Automobiles.