nandan stock4doc

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Homework type/no: Term Paper Course code: MGT959

Course instructor: Gitaka madam

Date of submission: 8-11-10

TERM PAPER OF STOCK MARKET OPERATION ON MARUTI SUZUKI

FINANCIAL ANALYSIS LIKE RATIO ANALYSIS & TREND ANALYSIS

Declaration:

I declare that this term paper is my individual work. I have not copied from any other students

work or from any other source except where due acknowledgment is made explicitly in the text,

nor has been written for me another person.

Students signature: Nandlal kr Nandan

Roll . No - A33

Evaluators comments:

Marks obtained _____________________ out of ______________________________


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Maruti Suzuki Profile

Maruti Suzuki India Limited

Type Public (BSE MARUTI, NSE MARUTI)

Industry Automotive

Founded 1981 (as Maruti Udyog Limited)

Headquarte

rsDelhi, India

Key people Mr. Shinzo Nakanishi, Managing Director and CEO

Products Automobiles, Motorcycles

Revenue US$4.8 billion (2009)
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Automobileshttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/File:Maruti_Suzuki_Logo.svghttp://en.wikipedia.org/wiki/File:Maruti_Old_Logo.JPGhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Automobileshttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US$


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Employees 6,903 [1]

Parent Suzuki Motor Corporation

Website MarutiSuzuki.com

Maruti Suzuki India Limited (Hindi: ) a partial subsidiary ofSuzukiMotor Corporation ofJapan, is India's largest passenger car company, accounting for over 45%

of the domestic car market. The company offers a complete range of cars from entry level Maruti

800 and Alto, to stylish hatchbackRitz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4and Sports Utility vehicle Grand Vitara.

It was the first company in India to mass-produce and sell more than a million cars. It is largely

credited for having brought in an automobile revolution to India. It is the market leader in India

and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited.The company's headquarters are located in Delhi.

Munsiyari on a Maruti 800', UttarakhandHimalayas
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Maruti Suzuki plant in Gurgaon

Maruti Suzuki is India's number one leading automobile manufacturer and the market leader in

the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,

18.28% of the company was owned by the Indian government, and 54.2% by Suzuki ofJapan.The BJP-led government held an initial public offering of 25% of the company in June 2003. As

of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this,

Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual productioncommenced in 1983 with the Maruti 800, based on the Suzuki Alto kei carwhich at the time was

the only modern car available in India, its only competitors- the Hindustan Ambassadorand

Premier Padmini were both around 25 years out of date at that point. Through 2004, MarutiSuzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various

several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not

manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in

Pakistan and otherSouth Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic

market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest

selling compact car ever since it was launched in 1983. More than a million units of this car havebeen sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and MarutiSuzuki Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is

commonly used to refer to this compact car model ("Maruti" is another name of the Hindu god,Hanuman).
http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Hinduhttp://en.wikipedia.org/wiki/Hanumanhttp://en.wikipedia.org/wiki/File:Marutisuzuki.jpghttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Hinduhttp://en.wikipedia.org/wiki/Hanuman


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Maruti Suzuki has been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesarsouth ofDelhi.

Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. TheManesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity

of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 enginesand transmissions. Manesar and Gurgaon facilities have a combined capability to produce over

700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of

Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned

by public and financial institutions. It is listed on the Bombay Stock Exchange andNational

Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over

six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14

December 1983.

Maruti Suzuki offers 15 models, Maruti 800,Alto, WagonR,Estilo,A-star,Ritz,Swift,SwiftDZire, SX4, Omni, Eeco, Gypsy, Grand Vitara. Swift, Swift DZire, A-star and SX4 are

manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit

(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars forthree decades. Suzukis technical superiority lies in its ability to pack power and performance

into a compact, lightweight engine that is clean and fuel efficient.

Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been ratedfirst in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power AsiaPacific.[3]

Further information: Timeline of Maruti Suzuki

Partner for the joint venture

Sanjay Gandhi owned the Maruti Technical Services Limited, which ran into trouble and was

liquidated. After the death of Sanjay Gandhi, the Indira Gandhi government assigned adelegation of Indian technocrats to hunt for a collaborator for the project. Initial rounds of

discussion were held with the giants of the automobile industry in Japan including Toyota,Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheelerautomobile sector and had major share in the two wheeler segment. Suzuki's bid was considered

negligible.

While the major companies were personally represented in the initial rounds of discussion,

Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the roundsof discussion. Osamu in an article writes that it subtly massaged their (Indian delegation's) egos
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and also convinced them about the sincerity of Suzuki's bid. Suzuki in return received a lot of

help from the government in such matters as import clearances for manufacturing equipment

(against the wishes of the Indian machine tool industry then and its own socialistic ideology),land purchase at government prices for setting up the factory Gurgaon and reduced or removal of

excise tariffs. This ensured that Suzuki conscientiously nursed Maruti Suzuki through its infancy

to become one of its flagship ventures.[4]

Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's fifth global

car model, was designed and is made only in India. Besides being Suzuki's largest subsidiary in terms of

car sales, Maruti Suzuki is also Suzuki's leading research and development arm outside Japan

Relationship between the Government ofIndia, under the United Front (India) coalition andSuzuki Motor Corporation over the joint venture was a point of heated debate in the Indian

media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
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venture that had a near monopolistic trade in the Indian automobile market and the nature of the

partnership built up till then was the underlying reason for most issues. The success of the joint

venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992.In 1982 both the venture partners had entered into an agreement to nominate their candidate for

the post of Managing Director and every Managing Director will have a tenure of five years

Initially R.C.Bhargava, was the managing director of the company since the inception of thejoint venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining

in 1982 he held several key positions in the company before heading the company as Managing

Director. Currently he is on the Board of Directors.After completing his five year tenure, Mr.Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr.

S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined

Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy

Electricals Limited as General Manager. Later in 1987 he was promoted as Chief GeneralManager, 1988 as Director, Productions and Projects, 1989 Director, Materials and in 1993 as

Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board with thereason of it being called on a short notice. Later Suzuki Motor Corporation went on record tostate that Mr. Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry

of Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki

sources that Bhaskarudu was interested to indigenise most of components for the modelsincluding gear boxes especially forMaruti 800. Suzuki also felt that Bhaskarudu was a proxy for

the Government and would not let it increase its stake in the venture. If Maruti Suzuki would

have been able to indigenise gear boxes then Maruti Suzuki would have been able tomanufacture all the models without the technical assistance from Suzuki. Till today the issue of

localization of gear boxes is highlighted in the press. The relation strained when Suzuki Motor

Corporation moved to Delhi High Court to bring a stay order against the appointment of Mr.

Bhaskarudu. The issue was resolved in an out-of-court settlement and both the parties agreed thatR S S L N Bhaskarudu would serve up to 31 December 1999, and from 1 January 2000, Jagdish

Khattar, Executive Director of Maruti Udyog Limited would assume charges as the Managing

Director. Many politicians believed, and had stated in parliament that the Suzuki MotorCorporation is unwilling to localize manufacturing and reduce imports. This remains true, even

today the gear boxes are still imported from Japan and are assembled at the Gurgaon facility.

Industrial relations

For most of its history, Maruti Udyog Limited had relatively few problems with its labour force.Its emphasis of a Japanese work culture and the modern manufacturing process, first instituted in

Japan in the 1970s, was accepted by the workforce of the company without any difficulty. Butwith the change in management in 1997, when it became predominantly government controlledfor a while, and the conflict between the United Front Government and Suzuki may have been

the cause of unrest among employees. A major row broke out in September 2000 when

employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among otherthings, revision of the incentive scheme offered and implementation of a pension scheme.

Employees struck work for six hours in October 2000, irked over the suspension of nine

employees, going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of the
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incentive-linked pay and threatened to fast to death if the suspended employees were not

reinstated. About this time, the NDA government, following a disinvestments policy, proposed to

sell part of its stake in Maruti Suzuki in a public offering. The Staff union opposed this sell-offplan on the grounds that the company will lose a major business advantage of being subsidised

by the Government.

The standoff with the management continued to December with a proposal by the management

to end the two-month long agitation rejected with a demand for reinstatement of 92 dismissedworkers, with four MUL employees going on a fast-unto-death. In December the company's

shareholders met in New Delhi in an AGM that lasted 30 minutes. At the same time around 1500

plant workers from the MUL's Gurgaon facility were agitating outside the company's corporateoffice demanding commencement of production linked incentives, a better pension scheme and

other benefits. The management has refused to pass on the benefits citing increased competition

and lower margins.

Services offered

Current sales of automobiles

M

aruti 800
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Maruti Omni

India's Corps of Military Police personnel patrolling the Wagah border

crossing in the Punjab in a Maruti Gypsy.
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Maruti WagonR
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Maruti Alto

Maruti Suzuki Swift
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Maruti Suzuki Zen Estilo

Suzuki SX4
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5t

h Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.

Maruti Suzuki Swift DZire
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Suzuki Splash is sold as Maruti Suzuki Ritz in India.

Manufactured locally

1. 800 (Launched 1983)2. Omni (Launched 1984)3. Gypsy (Launched 1985)4. WagonR (Launched 2002)5. Alto (Launched 2000)6. Swift (Launched 2005)7. Estilo (Launched 2009)

8. SX4 (Launched 2007)9. Swift DZire (Launched 2008)10.A-star (Launched 2008)11.Ritz (Launched 2009)12.Eeco (Launched 2010)

Imported
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Suzuki Grand Vitara

1. Grand Vitara (Launched 2007)

Discontinued car models

1. 1000 (19901994)2. Zen (19932006)3. Esteem (19942008)4. Baleno (19992007)5. Zen Estilo (20062009)6. Versa (20012010)7. Grand Vitara XL7 (20032007)

Manufacturing facilities

Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing

facilities have a combined production capacity of 1,250,000 vehicles annually.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is

spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles

annually but productivity improvements have enabled it to manufacture 700,000 vehicles

annually. The Gurgaon facilities also manufacture 240,000K-Series engines annually. The entirefacility is equipped with more than 150 robots, out of which 71 have been developed in-house.

The Gurgaon Facilities manufactures the 800, Alto,WagonR, Estilo, Omni,Gypsy and Eeco.

Manesar Manufacturing Facility

The ManesarManufacturing Plant was inaugurated in February 2007 and is spread over600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this

was increased to 300,000 vehicles annually in October 2008. The production capacity was

further increased by 250,000 vehicles taking total production capacity to 550,000 vehiclesannualy. The Manesar Plant produces the A-star, Swift, Swift DZire and SX4.

Sales and service network

Maruti Suzuki is one of the companies in India which has unparalleled sales and service network.As of March 2010 it has 802 dealerships across 555 towns and cities in India. To ensure the

vehicles sold by them are serviced properly, Maruti Suzuki has 2,740 workshops (including

dealer workshops and Maruti Authorised Service Stations) in 1,335 towns and cities. It has 30

Express Service Stations on 30National Highways across 1,314 cities in India. The company isplanning to expand the number of dealerships to 1,500 by 2015.
http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Maruti_1000http://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Esteemhttp://en.wikipedia.org/wiki/Maruti_Balenohttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/National_Highway_(India)http://en.wikipedia.org/wiki/File:2nd_Suzuki-Grand-Vitara.jpghttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Maruti_1000http://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Esteemhttp://en.wikipedia.org/wiki/Maruti_Balenohttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/National_Highway_(India)


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Service is a major revenue generator of the company. Most of the service stations are managed

on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have

not been able to match this benchmark set by Maruti Suzuki. The Express Service stations helpmany stranded vehicles on the highways by sending across their repair man to the vehicle.

Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the

National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The

service was set up the company with the inception of two subsidiaries Maruti InsuranceDistributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.This service started as

a benefit or value addition to customers and was able to ramp up easily. By December 2005 they

were able to sell more than two million insurance policies since its inception.

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti andMaruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in

securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak

Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic

partners in car finance. Again the company entered into a strategic partnership with SBI inMarch 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti

Finance. SBI-Maruti Finance is currently available in 166 cities across India.

"Maruti Finance marks the coming together of the biggest players in the car finance business.They are the benchmarks in quality and efficiency. Combined with Maruti volumes and

networked dealerships, this will enable Maruti Finance to offer superior service and competitiverates in the marketplace".

Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference

announcing the launch of Maruti Finance on 7 January 2002

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti

Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti

Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank OverseasInvestment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank

N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining

26%.[22]

GE Capital, HDFC and Maruti Suzuki came together in 1995 to form MarutiCountrywide.[23]Maruti claims that its finance program offers most competitive interest rates to

its customers, which are lower by 0.25% to 0.5% from the market rates.

Maruti TrueValue

Main Article: Maruti True Value
http://en.wikipedia.org/wiki/Delawarehttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-21http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-22http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-22http://en.wikipedia.org/wiki/Maruti_True_Valuehttp://en.wikipedia.org/wiki/Delawarehttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-21http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-22http://en.wikipedia.org/wiki/Maruti_True_Value


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Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used

Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the

help of this service in India. As of 2009 there are 315 Maruti True Value outlets.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleetmanagement solution to corporates. Its impressive list of clients who have signed up of this

service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering,

Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet managementservice include end-to-end solutions across the vehicle's life, which includes Leasing,

Maintenance, Convenience services and Remarketing.

Accessories

Many of the auto component companies other than Maruti Suzuki started to offer components

and accessories that were compatible. This caused a serious threat and loss of revenue to MarutiSuzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine

Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,

stereo systems, seat covers and other car care products. These products are sold through dealer

outlets and authorized service stations throughout India.

Maruti Driving School

A Maruti Driving School in Chennai

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving Schoolin Delhi. Later the services were extended to other cities of India as well. These schools are

modelled on international standards, where learners go through classroom and practical sessions.

Many international practices like road behaviour and attitudes are also taught in these schools.Before driving actual vehicles participants are trained on simulators.[27]
http://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-26http://en.wikipedia.org/wiki/File:Maruti_Suzuki_driving_school.jpghttp://en.wikipedia.org/wiki/File:Maruti_Suzuki_driving_school.jpghttp://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-26


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"We are very concerned about mounting deaths on Indian roads. These can be brought down if

government, industry and the voluntary sector work together in an integrated manner. But we felt

that Maruti should first do something in this regard and hence this initiative of Maruti DrivingSchools."

Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore

Issues and problems

On February, 24, 2010, Maruti Suzuki India, announced recalling of 100,000 A-Star hatchbacksto fix a fuel leakage problem. the company will replace the gaskets for all 100,000 A-Star cars .[

Exports

Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it

does not operate in the domestic Indian market. The first commercial consignment of 480 carswere sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki

crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects

government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign

currency.

Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile,

Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports

Income Statement

31-Mar-10(12)

31-Mar-09(12)

31-Mar-08(12)

Profit / Loss A/C Rs mn %OI Rs mn %OI Rs mn %OI

Net Sales (OI) 293253.00100.0

0206460.00

100.00

179362.00100.0

0

Material Cost 226399.00 77.20 159681.00 77.34 131760.00 73.46

Increase Decrease Inventories -1969.00 -0.67 2969.00 1.44 4906.00 2.74

Personnel Expenses 5456.00 1.86 4711.00 2.28 3562.00 1.99

Manufacturing Expenses 13005.00 4.43 9296.00 4.50 7113.00 3.97

Gross Profit 50362.00 17.17 29803.00 14.44 32021.00 17.85

Administration Selling and Distribution

Expenses13797.00 4.70 13548.00 6.56 9084.00 5.06

EBITDA 36565.00 12.47 16255.00 7.87 22937.00 12.79

Depreciation Depletion andAmortisation

8250.00 2.81 7065.00 3.42 5682.00 3.17

EBIT 28315.00 9.66 9190.00 4.45 17255.00 9.62

Interest Expense 335.00 0.11 510.00 0.25 596.00 0.33

Other Income 7945.00 2.71 8078.00 3.91 8371.00 4.67

Pretax Income 35925.00 12.25 16758.00 8.12 25030.00 13.96
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Provision for Tax 10949.00 3.73 4571.00 2.21 7722.00 4.31

Extra Ordinary and Prior Period ItemsNet

0.00 0.00 0.00 0.00 0.00 0.00

Net Profit 24976.00 8.52 12187.00 5.90 17308.00 9.65

Adjusted Net Profit 24976.00 8.52 12187.00 5.90 17308.00 9.65

Dividend - Preference 0.00 0.00 0.00 0.00 0.00 0.00Dividend - Equity 1733.00 0.59 1011.00 0.49 1445.00 0.81

Balance Sheet

31-Mar-10 %BT 31-Mar-09 %BT 31-Mar-08 %BT

Equity Capital 1445.00 0.88 1445.00 1.06 1445.00 1.17

Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00

Share Capital 1445.00 0.88 1445.00 1.06 1445.00 1.17

Reserves and Surplus116906.0

071.45 92004.00 67.57 82709.00 67.18

Loan Funds 8214.00 5.02 6989.00 5.13 9002.00 7.31

Current Liabilities 29394.00 17.97 30358.00 22.30 24562.00 19.95

Provisions 6284.00 3.84 3807.00 2.80 3695.00 3.00

Current Liabilities and Provisions 35678.00 21.81 34165.00 25.09 28257.00 22.95

Total Liabilities and Stockholders Equity(BT)

163613.00

100.00136154.0

0100.00

123114.00

100.00

Tangible Assets Net 50088.00 30.61 40708.00 29.90 32965.00 26.78

Intangible Assets Net 159.00 0.10 0.00 0.00 0.00 0.00

Net Block 50247.00 30.71 40708.00 29.90 32965.00 26.78

Capital Work In Progress Net 3876.00 2.37 8613.00 6.33 7363.00 5.98

Fixed Assets 54123.00 33.08 49321.00 36.22 40328.00 32.76

Investments 71766.00 43.86 31733.00 23.31 51807.00 42.08

Inventories 12088.00 7.39 9023.00 6.63 10380.00 8.43

Accounts Receivable 8099.00 4.95 9378.00 6.89 6555.00 5.32

Cash and Cash Equivalents 982.00 0.60 19390.00 14.24 3305.00 2.68

Other Current Assets 848.00 0.52 981.00 0.72 331.00 0.27

Current Assets 22017.00 13.46 38772.00 28.48 20571.00 16.71

Loans & Advances 15707.00 9.60 16328.00 11.99 10408.00 8.45

Miscellaneous Expenditure Other Assets 0.00 0.00 0.00 0.00 0.00 0.00

Total Assets (BT)163613.0

0100.00

136154.00

100.00123114.0

0100.00

Ratio-analysis means the process of computing, determining and presenting the

relationship of related items and groups of items of the financial statements. They

provide in a summarized and concise form of fairly good idea about the financial

position of a unit. They are important tools for financial analysis.

Its a tool which enables the banker or lender to arrive at the following factors :

Liquidity position


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Profitability

Solvency

Financial Stability

Quality of the Management

Safety & Security of the loans & advances to be or already been provided

All ratios are in 2009

Current Ratio : It is the relationship between the current assets and current

liabilities of a concern.

Current Ratio = Current Assets/Current Liabilities

1.Current assets =38772.00 & Current liabilities = 30358.00

Current ratio = 38772.00/30358.00 = 1.27

Where as the ideal Current Ratio preferred by Banks is 1.33 : 1

2. Net Working Capital = Current Assets Current Liabilities

Current assets = 38772.00

Current liabilities = 30358.00

Net Working Capital =38772.0030358.00

3. ACID TEST or QUICK RATIO : It is the ratio between Quick Current Assets and

Current Liabilities. The should be at least equal to 1.

Quick Current Assets : Cash/Bank Balances + Receivables upto 6 months +

Quickly realizable securities such as Govt. Securities or quickly marketable/quoted

shares and Bank Fixed Deposits

Acid Test or Quick Ratio = Quick Current Assets/Current Liabilities

Quick current assets =19390/30358 = 0.63

4.DEBT EQUITY RATIO : It is the relationship between borrowers fund (Debt) andOwners Capital (Equity).

Long Term Outside Liabilities / Tangible Net Worth

Liabilities of Long Term Nature

Total of Capital and Reserves & Surplus Less In


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DEBT EQUITY RATIO = 29803/920048 = 0.075

5. GROSS PROFIT RATIO : By comparing Gross Profit percentage to Net Sales we

can arrive at the Gross Profit Ratio which indicates the manufacturing efficiency as

well as the pricing policy of the concern.

Gross Profit Ratio = (Gross Profit / Net Sales ) x 100

=( 29803/206460) *100 = 14.43

Alternatively , since Gross Profit is equal to Sales minus Cost of Goods Sold, it

can also be interpreted as below :

Gross Profit Ratio = [ (Sales Cost of goods sold)/ Net Sales] x 100

6. NET PROFIT RATIO :

It is expressed as = ( Net Profit / Net Sales ) x 100

=( 12187/206460)*100 = 5.9

7. ASSET TRUNOVER RATIO :

= Net Sales/Tangible Asset

= 206460/40708 = 5.07

8. FIXED ASSET TURNOVER RATIO :

= Net Sales /Fixed Assets

= 206460/49321 = 4.18

9. CURRENT ASSET TURNOVER RATIO : Net Sales / Current Assets

= 206460/38772 = 5.32

Composite Ratio

10. RETRUN ON EQUITY CAPITAL (ROE) :

= Net Profit after Taxes / Tangible Net Worth


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= 12187/40708 = 0.29

11 .EARNING PER SHARE : EPS indicates the quantum of net profit of the year that

would be ranking for dividend for each share of the company being held by the

equity share holders.

= Net profit after Taxes and Preference Dividend/ No. of Equity Shares

= 42.20

According to ideal current ratio is 1.33:1 where as the company ratio in 2009 is 1.27

but quick current ratio is 0.66,dept equity ratio is 0.075,gross profit ratio is 14.43,

assets turnover ratio is 5.07, fixed assets turnover rato is 4.18 , return on equity

capital is 0.29, eps is 42.20 and book vaulue per shre is 323.40.so we say that

company is in normal profitability and solvency position.

TREND ANALYSIS

In trend analysis treats year 1 as the base year and compares the figures of

all the years (year2 year3..) with those of the base year to acertain the trend

in figures . thus trend analysis of sales will reveal wethr as compared to the

base year i.e year1 the sales show a trend of increase or decrease in

subsequent year i.e year2,year3and so on

Limitations:

1) Choice of base & no of year

2) Different accounting policies

IN TREND ANALYSIS DIFFERENT VALUASES ARE FOUND IN 2009 AND 2010

2008 20092010

Equity Capital 100 100100

Preference Capital 100 000


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000

Share Capital 100 100100

Reserves and Surplus 100 111.24141.35

Loan Funds 100 77.63

91.25

Current Liabilities 100 123.59119.67

Provisions 100 103.03170.06

Current Liabilities and Provisions 100 110.59132.89

Total Liabilities and Stockholders Equity (BT) 100 00000000

Tangible Assets Net 100 123.48152.43

Intangible Assets Net 100 0000

0000

Net Block 100 116.9752.64

Capital Work In Progress Net 100 122.29134.20

Fixed Assets 100 61.25138.52

Investments 100 86.92116.45

Inventories 100 69.89123.55

Accounts Receivable 100 143.06

116.45Cash and Cash Equivalents 100 58.66

29.71

Other Current Assets 100 296.37256.19

Current Assets 100 188.47107.02

Loans & Advances 100 156.87150.91

Miscellaneous Expenditure Other Assets 100 0000000000

Total Assets (BT) 100 110.59

132.89

1.According to reserve and surplus is 111.24 in 2009 but 141.35 in 2010 i.e

increased in 2010

2.current labilities and provision is increase in 2010 i.e 132.89 where as 110.59 in

2009


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3. loan and adavaces is decrease in 2010 i.e 150.91 and in 2009 156.87

4.capital work in progress net is increase in 2010 i.e 134.20 and 122.29 in 2009

5. fixed assets is more increase in 2010 i.e 138.52 but 61.25 in 2009

All analysis of maruti Suzuki in 2010 good position in liquidity fanacial stabilityposition.

REFERENCES

1.www.google .co.i n

2.www.indiainfoline.com

nandan stock4doc

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