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    Bajaj Automobiles Ltd.

    Type Public

    Founded 1945

    Headquarters Pune,India

    Key peopleRahul Bajaj (Chairman), Rajiv

    Bajaj(Managing Director)

    RevenueRs. 81,063 billion (2005) or USD

    1.32billion

    Net income Rs. 11,016 billion

    Website www.bajajauto.com

    http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/w/index.php?title=Rajiv_Bajaj&action=edithttp://en.wikipedia.org/w/index.php?title=Rajiv_Bajaj&action=edithttp://en.wikipedia.org/w/index.php?title=Rajiv_Bajaj&action=edithttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/1000000000_%28number%29http://en.wikipedia.org/wiki/1000000000_%28number%29http://en.wikipedia.org/wiki/1000000000_%28number%29http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Websitehttp://www.bajajauto.com/http://www.bajajauto.com/http://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Green_Arrow_Up.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://www.bajajauto.com/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/1000000000_%28number%29http://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/w/index.php?title=Rajiv_Bajaj&action=edithttp://en.wikipedia.org/w/index.php?title=Rajiv_Bajaj&action=edithttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Category:Types_of_companies
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    History of bajaj

    Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is

    based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) andPantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead.Bajaj Auto makes and exports motorscooters, motorcycles and the auto rickshaw.

    The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.[1]

    Over the last decade, the company has successfully changed its image from a scootermanufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes,scooters and motorcycles. Its real growth in numbers has come in the last four years aftersuccessful introduction of a few models in the motorcycle segment.

    The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.[2]

    Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading CorporationPrivate Limited. It started off by selling imported two- and three-wheelers in India. In 1959, itobtained license from the Government of India to manufacture two- and three-wheelers and itwent public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produceand sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj nearAurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year.In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

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

    Everything, Bajaj has grown operations in 50 countries by creating a line of value-for-moneybikes targeted to the different preferences of entry-level buyers.

    http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Forbes_Global_2000http://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-0http://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-0http://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-0http://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-1http://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-1http://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Aurangabad_Maharashtrahttp://en.wikipedia.org/wiki/Aurangabad_Maharashtrahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-1http://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Bajaj_Auto#cite_note-0http://en.wikipedia.org/wiki/Forbes_Global_2000http://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/India
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    Swot analysis of bajaj auto

    Strength

    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 commutersegment.

    Not a global player in spite of huge volumes.

    Not a globally recognizable brand (unlike the JV partner Kawasaki)

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    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 markets.

    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

    Current market price of bajaj auto

    BSE

    Open Price 1585.00

    High Price 1620.90

    Low Price 1559.50

    NSE

    Open Price 1593.00

    High Price 1593.00Low Price 1560.15

    Bid Offer

    Price 1569.30 1569.40

    Quantity 22 21

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    Auditor report

    1. We have audited the attached Balance Sheet of BAJAJ AUTO LIMITED, as at 31 March2010, and the related Profit and Loss Account and Cash Flow Statement for the year endedon that date annexed thereto, which we have signed under reference to this report. These

    financial statements are the responsibility of the Companys management. Our responsibilityis to express an opinion on these financial statements based on our audit.

    2. We conducted our audit in accordance with the auditing standards generally accepted inIndia.Those Standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basis for our opinion.

    3. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies(Auditors Report) (Amendment) Order, 2004 (together the "Order"), issued by the CentralGovernment of India in terms of sub-section (4A) of Section 227 ofThe Companies Act,1956 of India (the Act) and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.

    4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:(a)We have obtained all the information and explanations, which to the best of our

    knowledge and belief were necessary for the purposes of our audit;(b)In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

    (c)The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with bythis report are in agreement with the books of account;

    (d)In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statementdealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act;

    (e)On the basis of written representations received from the directors, as on 31 March2010 and taken on,record by the Board of Directors, none of the directors isdisqualified as on 31 March 2010 from being appointed as a director in terms of

    clause (g) of sub-section (1) of Section 274 of the Act;(f) In our opinion and to the best of our information and according to the explanationsgiven to us, the said financial statements together with the notes thereon and attachedthereto give, in the prescribed manner, the information required by the Act and give atrue and fair view in conformity with the accounting principles generally accepted inIndia:

    (i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March2010;

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    (ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date;and

    (iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

    Annexure to the Auditors Report Referred to in paragraph 3 of the Auditors Report of even date tothe members of Bajaj Auto Limited on the financial statements for the year ended 31 March 2010

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    Corporate governance

    Pursuant to clause 49 of the listing agreement with stock exchanges, a separate section titledCorporate Governance has been included in this annual report, along with the reports on

    Management Discussion and Analysis and General Shareholder Information.

    All board members and senior management personnel have affirm edcompliance with the codeof conduct for the year 2009-10. A declaration to this effect signed by the Chief ExecutiveOfficer (CEO) of the company is contained in this annual report.

    The CEO and Chief Financial Officer (CFO) have certified to the board with regard to thefinancial statements and other matters as specified in clause 49 of the listing agreement and thesaid certificate iscontained in this annual report.

    Secretarial standards of ICSI

    Secretarial standards issued by the Institute of Company Secretaries of India (ICSI) from time totime are currently recommendatory in nature. Your company is, however, complying with thesame.

    Group

    Pursuant to an intimation from the Promoters, the names of the Promoters and entitiescomprising Group as defined under the Monopolies and Restrictive Trade Practices (MRTP) Act,1969 are

    disclosed in the Annual Report for the purpose of Regulation 3(1 )(e) of the SEBI (SubstantialAcquisition of Shares and Takeovers) Regulations, 1997.

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    Director report

    The directors present their third annual report and the audited statements of accounts for the yearended 31 March 2010.

    The highlights are as under:-

    Units 2009-10 2008-096,748 3,724

    Transfer to General Reserve 1,703 2,821

    Balance carried in Profit & LossAccount 8,550 --

    Earnings per share (Rs.) 117.7 45.2

    Dividend

    The directors recommend for consideration of the shareholders at the ensuing annual generalmeeting, payment of a dividend of Rs.40 per share, (400 per cent) for the year ended 31 March2010. The amount of dividend and the tax thereon aggregates to Rs. 6,748.5 million.

    Dividend paid for the year ended 31 March 2009 was Rs.22 per share (220 per cent). Theamount of dividend and the tax thereon aggregated to Rs. 3,724 million.

    Operations

    The operations of the company are elaborated in the annexed Management Discussion andAnalysis Report.

    Capacity expansion & New Projects

    The company plans to increase its capacity of two and three wheelers from the current 4,260,000numbers per annum to 4,980,000 numbers per annum by 31 March 2011.

    The 4 wheel vehicle development work is under progress and commercial launch of the firstproduct from this platform is scheduled for 2012.

    The techno-economic feasibility of the 4-wheeler Project and related agreements betweenpartners, Bajaj, Renault & Nissan will be concluded at a suitable stage of this platformdevelopment.

    Research & development and technology absorption

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    During the year under review, your company continued to invest substantially in R & Dfacilities, resulting in the enhancement of its infrastructure for design, prototyping & testing.

    The year 2009-10 was a satisfying year, with R&D being involved in the creation of a numberof new products and helping your company to gain market share. Many important products,

    which demonstrated the technical prowess of the company, were launched during the year underreview. These were Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and DiscoverDTS.

    Your company continues to focus on expanding its design and testing teams, which has enabledit to make the new generation products.

    The developments in this area are set out in greater detail in the annexed ManagementDiscussion and Analysis Report.

    The expenditure on research and development during 2009-10 and in the previous year was:

    Rs. In Million

    2009-10 2008-09

    i. Capital (including technicalknow-how) 312.3 310.8

    ii. Recurring 1,035.3 837.9

    Total 1,347.6 1,148.7

    iii. Total resarch and developmentexpenditure as a percentage ofsales, net of excise duty 1.17 1.36

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    Financial Statement analysis by Ratio

    The focus of financial analysis is on key figures in financial statements and the significantrelationship that exist between them. The analysis of financial statement is a process ofevaluating relationship between component parts of financial statements to obtain a better

    understanding of the firms position and performance. The first take of the financial analyst is toselect the information relevant to the decision under consideration from the total informationcontained in the financial statement. The second step involve in financial analysis is to arrangethe information in a way to highlight significant relationship. The final step is interpretation anddrawing of inferences and conclusions. In brief, financial analysis is the process of selection,relation and the evolution.

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    Ratio Analysis

    Ratio Analysis is a comprehensive tool of analysis in that it seek to measure and establish causeand effect relationships between either two item of balance sheet, say current ratio, that is, ratio

    of current assets to current liabilities or of profit and loss account, say net profit margin, that is,ratio of PAT to net sales, or both the balance sheet and the profit and loss account, say return onnet worth, that is, ratio of PAT to net worth. Ratio are used to assess the return on investment,solvency, liquidity, resources efficiency, profitability and capital market valuation of acompany.

    Ratio Analysis is thus a relative and more focused analysis of financial statements. Thatdoes not mean that it can be used independently of other tools and techniques. It leads to anexpansion and further analysis of the finding recorded through other tools. Ratio analysis is ofparticular significance in the following cases:

    Inter-firm comparison, because absolute figure comparison will lead to nowhere.

    Inter-firm comparison for the same reason.

    Comparison against industry benchmarks. Analysis of chronological performance over a long period.

    Classification of Ratios

    Ratios are classified according to their functions and objective. Despite the purpose behind thembeing normally the same, there is no standard clarification of ratio. Different authors classifythem differently. Categories of Ratio are:

    Return on Investment Ratios

    Solvency Ratios Liquidity Ratios

    Resources Efficiency Or Turnover Ratios

    Profitability/Profit Margin Ratios

    Du Pont Analysis

    Within each category, there are a number of ratios. A discussion on them now follows. Itneeds to be understood that ratios should be computed after weeding out the impact of windowdressing, wherever required.

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    Ratio analysis

    RETURN ON INVESTMENT (ROI) RATIOS

    Maximisation of Return on investment or ROI is the ultimate objective of the companymanagement. For, it is the expectation of a high return that motivate equity shareholders tocontinue to with the company and new investors to put in their money in companys equity. It isalso the ultimate measure of the efficiency of performance of a management. Hence, adequacy orotherwise of ROI because the main determinant of a companys fate. Three major ratios are

    computed and analysed within this broad group:

    Return On Net Worth (RONW)

    Earnings Per Share (EPS)

    Cash Earnings Per Share (CEPS)

    Return On Net Worth (RONW):

    The Ratio measures the net profit earned on the shareholders funds. It is the measure overallprofitability of a company after discharging cost of borrowed capital and income tax payable tothe government. It is also known as return on Equity or ROE ratio.

    RONW (%) =

    (PATPreference Dividend) * 100________

    Equity Shareholders Fund or Net Worth*

    *Equity Shareholders Fund or Net Worth

    =Equity capital + Reserves & Surplus - Miscellaneous Expenditure Not Written Off

    Year (PATPreference Dividend) * 100 Equity Shareholders Fund or

    Net Worth

    Return On

    Net Worth

    (%)

    2006 11016.3100 47707.3 23.09

    2007 12379.6100 55343.2 22.37

    2008 7559.5100 15875.9 47.62

    2009 6545.8100 18696.6 35.01

    2010 17036.3100 29283.4 58.18

    Interpretation:Return on Net worth (RONW) is a ratio, which measure the net profit

    earned on the equity shareholders fund. It is the measure overall profitability of a company afterdischarging cost of borrowed capital and income tax payable to the government. It is also knownas return on Equity or ROE ratio. This ratio is most important not only to the equity holders but

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    all the stakeholders. In Bajaj first year had less equity share and get more profit. so its RONW ishigher. At 2010 Ratio of RONW is 66.18 % higher then that of 2009. So there is animprovement over the year 2009. After 2007company issues preference shares, so companymust have to give dividend on preference share. So that companys RONW is increase by the

    year.

    Earnings per Share (EPS):The ratio measures the overall profitability in term of per equity share of capital contributedby the owners. It thus seeks to put RONW in a different perspective.EPS (Rs.) =

    PATPreference dividend____________

    Weighted Average No. of Equity Shares Outstanding

    Year PATPreference dividend Weighted Average No. of

    Equity Shares Outstanding

    Earnings

    per Share

    (Rs.)2006 11016.3 144.68 76.14

    2007 12379.6 144.68 85.57

    2008 7559.5 144.68 52.25

    2009 6545.8 144.68 45.24

    2010 17036.3 144.68 117.75

    Interpretation:Earnings per Shares (EPS) is the ratio, which measures the overall

    profitability in term of per equity share of capital contributed by the owners. It thus seeks to putRONW in a different perspective. This ratio is widely known and used across industries andcapital market. It is the first and the foremost ratio that strikes the mind of shareholders andanalysts while looking into the performance of accompany. In Bajaj, in first year company getEPS per share is satisfactory and in third year it decrease to Rs. 13.41 % ovr the year 2009.After that it is increase which means company get increasingly EPS. And it make good impacton Shareholder and also on other stake holder.

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    Cash Earnings Per Share (CEPS):

    The ratio measures the overall cash profitability of share of capital contributed by the owners. Itis a refinement of EPS in that it takes into account the cash earning, and not accrual-basedearnings, the former certainly being more than the latter. And this it does by adjusting non-cashcharges like depreciation, amortization, Miscellaneous expenditure w/o, etc. , in the accrual-

    based profit.

    CEPS (Rs.) =PATPreference Dividend + Non-cash Charges______

    Weighted Average No. of Equity Share outstanding

    Year PATPreference dividend+ Non-

    cash Charges

    Weighted Average No. of

    Equity Shares Outstanding

    Cash

    Earnings

    per Share

    (Rs.)

    2006 11016.3-1910 144.68 62.942007 12379.6-1902.6 144.68 72.41

    2008 7559.5-1739.6 144.68 40.23

    2009 6545.8-1297.9 144.68 36.27

    2010 17036.3-1364.5 144.68 108.32

    Interpretation:Cash Earnings per Share (CEPS) is the ratio, which measures the overall cash

    profitability of share of capital contributed by the owners. It is a refinement of EPS in that ittakes into account the cash earning, and not accrual-based earnings, the former certainly beingmore than the latter. And this it does by adjusting non-cash charges like depreciation,

    amortization, miscellaneous expenditure w/o, etc., in the accrual-based profit. In UltraTech, Thisratios performance is same as EPS. In 2009, it is lowest then any other year. In 2010, it hasCEPS of Rs.108.32. which is heighest in any other year. It gives good impact on Shareholdersand on other stake holders.

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    SOLVENCY RATIO

    The capacity of a company to discharge its obligations towards long-term lenders indicates itsfinancial strength and ensures its long-term survival. It is important for an analyst to study thesolvency position, or gearing structure, or leveraging capacity of a company

    Net Assets Value (NAV)

    Debt Equity (D/E)

    Interest Cover

    Debt-service Ratio (DSCR)

    Net Assets Value (NAV):

    This ratio measures the net worth or net asset value per equity share. It thus seeks to assess aswhat extent the value of equity share of company contributes at par or at a premium has grown orthe value/wealth has been created for the shareholders. It is also known as net worth per share or

    book value per share.NAV (Rs.) =

    Equity shareholders Funds

    No. of Equity shares O/S

    Year Equity shareholders Funds No. of Equity shares O/S Net Assets Value

    (Rs. In crore)

    2006 47707.3 144.68 329.74

    2007 55343.2 144.68 382.52

    2008 15875.9 144.68 109.73

    2009 18696.6 144.68 129.232010 29283.4 144.68 202.4

    Interpretation:

    Net Assets Value (NAV) is the ratio, which measures the net worth or net asset value per equityshare. It thus seeks to assess as t what extent the value of equity share of company contributes atpar or at a premium has grown or the value/wealth has been created for the shareholders. It is

    also known as net worth per share or book value per share. Here, Net Assets Value for the firstyear increase then after consistently increase over a year.

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    Debt Equity (D/E):

    The ratio measures the proportion of debt and capital both equity and preference, in the capitalstructure of a company. In other word, it measures the extent of assets financed through long-term borrowings.

    Debt Equity (Times) =Long-term Debt___________________

    Total Net worth (Equity Shareholders Funds + Preference Capital)

    Year Secured Loans Unsecured Loans Long term debt

    2006 0.2 14671.3 14671.5

    2007 224.6 16029.7 16254.3

    2008 69.5 13273.9 13343.4

    2009 - 15700 15700

    2010 129.8 13256.0 13385.8

    Year Long-term Debt Total Net worth (Equity

    Shareholders Funds +

    Preference Capital)

    Debt Equity

    (Times)

    2006 14671.5 47707.3 0.31:12007 16254.3 55343.2 0.29:1

    2008 13343.4 15875.9 0.84:1

    2009 15700 18696.6 0.84:1

    2010 13385.8 29283.4 0.46:1

    Interpretation:Debt Equity (D/E) is the ratio, which measures the proportion of debt and

    capital both equity and preference, in the capital structure of a company. In other word, it

    measures the extent of assets financed through long-term borrowings. Here, this ratio is very lowbecause it take not much borrowing through other than shares. From , 0.31 in 2006 it goes downto 0.29 times in 2007. In 2008- 09 its on a peak point i.e 0.84. which shows a very good sign.

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    Interest Cover:

    The ratio measures the capacity of a company to pay the interest liability it has incurred on itslong-term borrowings, out of its cash profits. It is also known as Time-Interest covered.Interest cover (Times) =

    PAT + Interest on Long-term Debt + Non-cash ChargesInterest on Long-term Debt

    Year PAT + Interest on Long-term Debt

    + Non-cash Charges

    Interest on Long-term Debt Interest

    cover

    (Times)

    2006 11016.3-1910+3.4 3.4 2679.3

    2007 12379.6-1902.6+53.4 53.4 197.2

    2008 7559.5-1739.6+51.6 51.6 113.8

    2009 6545.8-1297.9+210.1 210.1 25.98

    2010 17036.3-1364.5+59.8 59.8 263.07

    Interpretation:Interest Cover is the ratio, which measures the capacity of a company to

    pay the interest liability it has incurred on its long-term borrowings, out of its cash profits. It isalso known as Time-Interest covered.

    Here, Ratio is very big because company has not borrowing capital other than share,company has to give low interest on it. In 2009 its shows least and respectively 2006 its 2679.3times cover interest & heighest among the given years.

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    LIQUDITY RATIOS

    The capacity of company to discharge its suppliers and providers and to meet its day-to-dayexpenses indicates its liquidity and ensures smooth continuity of operations, which in turn have astrong bearing on the long-term survival of the company. Liquidity of a company is affected by

    the credit it extends to its customers, credit that it enjoys from its suppliers and its inventorybuildup. The liquidity position of a company is determined by analysing the structure of currentassets and liabilities, credit period allowed to the customers, credit period allowed from suppliersand inventory holding of the company. Five major ratio:

    Net working capital ratio

    Current Ratio

    Quick Ratio or Acid-test Ratio

    Collection Period allowed to Customers

    Suppliers Credit

    Inventory Holding Period

    All are computed and analysed within this broad group. These are particularly useful for thesuppliers, employee, and providers of services and lenders to assess the short-term financialdefault risk attached to a company.

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    1. Net Working capital ratio:

    Formula: = Current Assets - Current Liabilities

    Current Assets = Cash & Bank + Debtors + Loans & Advances + inventories + other Current

    Assets.

    Current Liabilities= Current Liabilities (Provisions + Creditors)

    Year Current Asset Current Liabilities Net Working Ratio

    2006 28560.70 35447.60 (6886.90)

    2007 38186.30 43327.60 (5141.30)

    200816497.1

    18772.90 (2275.8)

    2009 23252.7 24375.60 (1122.9)

    2010 30009.5 42749.70 (12740.2)

    Interpretation:Net Working Capital (N.W.C.) is not a ratio, but it measures the companys

    liquidity position. In Bajaj Auto Ltd. in first year the liquidity position is quite sound as company

    is utilizing its short term funds for short term periods, but in later years the case is different

    because N.W.C. is negative which implies that company is utilizing its short term funds as long

    term assets.

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    Current Ratio:

    The ratio measures the ability of a company to discharge its day-to-day bills, or currentliabilities, as and when they fall due, out of the cash or near cash, or current assets that itpossesses.

    Current Ratio (Times) =

    Current Assets, Loan & Advances + short-term Investments

    Current Liabilities + Provisions + Short-term Debt

    Year Current Assets, Loan & Advances +

    short-term InvestmentsCurrent Liabilities +

    Provisions + Short-term Debt

    Current

    Ratio

    (Times)

    2006 28560.70 35447.60 0.80

    2007 38186.30 43327.60 0.88

    2008 16497.1 18772.90 0.88

    2009 23252.7 24375.60 0.95

    2010 30009.5 42749.70 0.70

    Interpretation:Current Ratio is the ratio, which measures the ability of a company to discharge

    its day-to-day bills, or current liabilities, as and when they fall due, out of the cash or near cash,or current assets that it possesses.Here, the ratio is good because Current assets, Loan & Advances and Short-term investment ishigher than current liabilities, provision and short-term Debt. So we can say that companysliquidity is better. Although, it should be noted that it has decreased from 0.80 to 0.70 timessince 2005 to 2010. This shows minor fluctuations.

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    Collection Period allowed to Customers:

    The ratio measures the credit period allowed to the customers on credit sales or how fast acompany realizes its outstanding dues. It is also known as Days Sales in Receivables Ratio.

    Collection Period allowed to Customers (Days) =

    Receivables * 365

    Credit Sales

    Year Receivables * 365 Credit Sales Collection

    Period

    allowed to

    Customers

    (Days)

    2006 3015.5 * 365 85498.6 12.87=13days

    2007 5298.3 * 365 106060.9 18.23=18days

    2008 2753.1 * 365 96899.5 10.37=10days

    2009 3586.5 * 365 90496.6 14.46=14days

    2010 2728.4 * 365 121180.8 8.22=8days

    Interpretation:

    Collection Period allowed to Customers is the ratio, which measures the creditperiod allowed to the customers on credit sales or how fast a company realizes its outstandingdues. It is also known as Days Sales in Receivables Ratio.Here, this ratio in 2010 is decreasing so that we can say that the company is in very goodsituation to realise the o/s dues very fast from customers. And in the another year there is higherthan 2010.

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    Inventory Holding Period:

    The ratio measures the period of the inventory build up or the number the number of daysthat cash is blocked in inventory or how fast a company is able to convert its inventory intocash or near cash.

    Inventory Holding Period (Days) =

    Inventory *365_____

    Cost of Goods Sold (COGS)

    Year COGS

    Raw Materials

    Consumed

    Manufacturing

    Expense

    Purchase Of

    Fixed Goods

    Inc/(Dec) in

    stock

    Total

    2006 696.3 2106 498.8 49944.9 53246.0

    2007 938.5 2490.7 644.1 64936.8 69010.12008 924.4 2163.6 489.0 62626.7 66203.7

    2009 1077.5 1922.3 515.5 61119.4 64634.7

    2010 1508.7 2137.4 537.9 76520.4 80704.4

    Year Inventory *365 Cost of Goods Sold (COGS)Inventory

    Holding

    Period

    (Days)

    2006 2729.3*365 53246.0 18.71

    2007 3097.0*365 69010.1 16.38

    2008 3496.1*365 66203.7 19.28

    2009 3388.4*365 64634.7 19.13

    2010 4462.1*365 80704.4 20.18

    Interpretation:

    Inventory Holding Period is the ratio, which measures the period of theinventory build up or the number the number of days that cash is blocked in inventory or howfast a company is able to convert its inventory into cash or near cash.

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    Here, in 2010 there are days are higher than the another year becauseinventory used by company requires very long time to convert it into cash or near cash. This isan obstacle for the company but because of the nature of the product it produces it is acceptable.However, efforts should be made to reduce the inventory holding period. And in the year 2008and 2009 holding period is similar there not high difference. And in 2006 has higher period than

    2007.

    DU PONT ANALYSIS

    RONW, the ultimate overall profitability ratio, is a function of Net Profit Margin and Net worthTurnover as is clear from the discussion we had earlier. Du Pont analysis seeks to measure andestablish this relationship.

    Du Pont Analysis =

    Year RONW = Net Profit

    Margin

    Net Worth Turnover

    (PAT-Preference Dividend) 100

    Equity Shareholders Funds or

    Net Worth (Equity Capital +

    Reserves & Surplus

    Miscellaneous Expenditure Not

    Written Off)

    = (PAT-

    Preference

    Dividend)

    100

    Net Sales

    Net Sales______

    Equity Shareholders

    Funds or Net Worth

    (Equity Capital +

    Reserves & Surplus

    MiscellaneousExpenditure Not

    Written Off)

    200623.09

    = 14.75 *1.57

    200722.37

    = 13.32 *1.68

    200847.62

    = 8.73 *5.46

    200935.01

    = 7.76 *4.63

    2010

    58.18

    = 14.80 *

    3.93

    Interpretation:

    The Du Pont Analysis is measure and establishes the relationship between Net Profit Margin &Net Worth Turnover, Which means that the improvement in RONW is because of which ofthem. Here, RONW is affected by both, it means that both net profit margin & net worth

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    turnover is equally affect to RONW. In bajaj, in 2006 RONW is decrease than 2007 because netprofit margin net worth turn over is higher in 2006 than 2007. And the ratio is higher in the 2008than whole of the year.

    Net Worth Turnover Ratio:

    The ratio measures the extent of turnover or volume of gross income generated by the NetWorth of a company. In other words, the efficiency in then resources utilization from theangle of the residual interest, that is, equity shareholders.

    Net Worth Turnover Ratio (Times) =

    Net sales___________________________________

    Equity Shareholders fund or Net worth (Equity Capital + Reserves & Surplus

    Miscellaneous Expenditure Not Written Off)

    Year Net Sales Equity Shareholders fund or

    Net worth

    Net Worth

    Turnover

    Ratio

    (Times)

    2006 74693.8 47707.3 1.57

    2007 92922.3 55343.2 1.68

    2008 86632.9 15875.9 5.46

    2009 84369.4 18696.6 4.51

    2010 115085 29283.4 3.93

    Interpretation:

    Net Worth Turnover Ratio is the ratio, which measures the extent of turnover or volumeof gross income generated by the Net Worth of a company. In other words, theefficiency in then resources utilization from the angle of the residual interest, that is,equity shareholders. Here, this ratio in 2006 is lower than 2007 because in first yearreserve and surplus is lower than second year. Same is in the another year and itsprofitable for the company where reserve and surplus is higher.

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    Fixed Assets Turnover Ratio:

    The ratio measures the extent of turnover or volume of gross income generated by the fixedassets of a company or in other words the efficiency in their utilization.

    Fixed Assets Turnover Ratio (Times) =

    Net Sales________

    Net Block of Fixed Assets

    Year Net Sales Net Block of Fixed AssetsFixed Assets

    Turnover Ratio

    (Times)

    2006 74693.8 11141.6 6.70

    2007 92922.3 12519.7 7.42

    2008 86632.9 12580.8 6.89

    2009 84369.4 15260.3 5.53

    2010 115085 14795.9 7.78

    Interpretation:

    Fixed Assets Turnover Ratio is the ratio measures the extent of turnover or volume of grossincome generated by the fixed assets of a company or in other words the efficiency in theirutilization. In the bajaj there is net sales is highest in the year of 2010 so its ratio is heigh. Itmeans company use assets efficiently in business. In the year of 2010. Ratio is same in the 2007but in this case net sales is lower than net block of assets.

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    Multi-step profit and loss account

    Years 2006 2007 2008 2009 2010

    ParticularsGross sales 85498.6 106060.9 96899.5 90496.6 121180.8

    Less: Excise duty 10804.8 13138.6 10266.6 6127.2 6095.8Net sales 74693.8 92922.3 86632.9 84369.4 115085.0

    Material cost

    COGS 53246.0 69010.1 66203.7 64634.7 80704.4

    Gross profit 21447.8 23912.2 20429.2 19734.7 34380.6

    Employeeremuniration

    Administrative,selling and otherexpenses

    10118.4 12344.8 11553.0 11692.2 12736.5

    (+) otherincome(operating)

    6170.2 7507.7 5055.5 4953.2 5349.8

    Profit beforedepriciation,interest and tax

    17499.6 19075.1 13931.7 12995.7 26993.9

    Depriciation 1910.0 1902.6 1739.6 1297.9 1364.5

    Amortisation

    Profit beforeinterest andtax(operatingprofit)

    15589.6 17172.5 12192.1 11697.8 25629.4

    Interest andfinance charges

    3.4 53.4 51.6 210.1 59.8

    Profit before tax

    (PBT)

    15586.2 17119.1 12140.5 11487.7 25569.6

    Provision for tax:

    Current incometax

    5135.5 5005.0 3927.5 3009.0 7126.2

    (+)/(-) deferredincome taxliability/asset

    (394.4) (134.1) (173.2) (67.9) (51.2)

    (+) fringe benefittax

    50.0 30.0 33.5 75.0 -

    (+)(-) taxadjustment for

    previous year

    225.1 - - - -

    Total income tax 5016.2 4900.9 3787.8 3016.1 7075

    Profit after tax

    (NPA)

    10570 12218.2 8352.7 8471.6 18494.6

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    Comman-sized Profit and Loss AccountFor The Year Ended 31st march 2007

    Years 2006 2007

    Particulars (Rs inmillions)

    Common size%age

    (Rs inmillions)

    Common size%age

    Gross sales 85498.6 114.46 106060.9 114.14

    Less: Excise duty 10804.8 11.63 13138.6 14.13

    Net sales 74693.8 100 92922.3 100

    Material cost

    COGS 53246.0 71.28 69010.1 74.26

    Gross profit 21447.8 28.71 23912.2 25.73

    Employeeremuniration

    Administrative,selling and other

    expenses

    10118.4 13.55 12344.8 13.29

    (+) otherincome(operating)

    6170.2 8.26 7507.7 8.08

    Profit beforedepriciation,interest and tax

    17499.6 23.43 19075.1 20.53

    Depriciation 1910.0 2.55 1902.6 2.05

    Amortisation

    Profit beforeinterest andtax(operatingprofit)

    15589.6 20.87 17172.5 18.48

    Interest andfinance charges

    3.4 0.004 53.4 0.057

    Profit before tax

    (PBT)

    15586.2 20.87 17119.1 18.42

    Provision for tax:

    Current incometax

    5135.5 6.87 5005.0 5.38

    (+)/(-) deferredincome taxliability/asset

    (394.4) (0.52) (134.1) (0.144)

    (+) fringe benefit

    tax

    50.0 0.06 30.0 .032

    (+)(-) taxadjustment forprevious year

    (225.1) (.30) -

    Total income tax 4566 6.11 4900.9 5.27

    Profit after tax

    (NPA)

    11020.2 14.75 12218.2 13.15

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    Comman-sized Profit and Loss AccountFor The Year Ended 31st march 2009

    Years 2008 2009

    Particulars (Rs inmillions)

    Common size%age

    (Rs inmillions)

    Common size%age

    Gross sales 96899.5 111.85 90496.6 107.26

    Less: Excise duty 10266.6 11.85 6127.2 7.2623

    Net sales 86632.9 100 84369.4 100

    Material cost

    COGS 66203.7 76.42 64634.7 76.6092

    Gross profit 20429.2 23.58 19734.7 23.3908

    Employeeremuniration

    Administrative,selling and other

    expenses

    11553.0 13.33 11692.2 13.8583

    (+) otherincome(operating)

    5055.5 5.83 4953.2 5.8708

    Profit beforedepriciation,interest and tax

    13931.7 16.08 12995.7 15.4033

    Depriciation 1739.6 2.00 1297.9 1.5384

    Amortisation

    Profit beforeinterest andtax(operatingprofit)

    12192.1 14.07 11697.8 13.8650

    Interest andfinance charges

    51.6 .059 210.1 0.2490

    Profit before tax

    (PBT)

    12140.5 14.01 11487.7 13.6160

    Provision for tax:

    Current incometax

    3927.5 4.53 3009.0 3.5665

    (+)/(-) deferredincome taxliability/asset

    (173.2) (0.2) (67.9) (0.0805)

    (+) fringe benefit

    tax

    33.5 0.038 75.0 0.089

    (+)(-) taxadjustment forprevious year

    - -

    Total income tax 3787.8 4.37 3016.1 3.75

    Profit after tax

    (NPA)

    8352.7 9.64 8471.6 10.04

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    Comman-sized Profit and Loss AccountFor The Year Ended 31st march 2010

    Years 2009 2010

    Particulars (Rs in millions) Common size%age

    (Rs inmillions)

    Common size%age

    Gross sales 90496.6 107.26 121180.8 105.3

    Less: Excise duty 6127.2 7.2623 6095.8 5.29

    Net sales 84369.4 100 115085.0 100

    Material cost

    COGS 64634.7 76.6092 80704.4 70.12

    Gross profit 19734.7 23.3908 34380.6 29.87

    Employeeremuniration

    Administrative,selling and other

    expenses

    11692.2 13.8583 12736.5 11.06

    (+) otherincome(operating)

    4953.2 5.8708 5349.8 4.65

    Profit beforedepriciation,interest and tax

    12995.7 15.4033 26993.9 23.45

    Depriciation 1297.9 1.5384 1364.5 1.18

    Amortisation

    Profit beforeinterest andtax(operatingprofit)

    11697.8 13.8650 25629.4 22.27

    Interest andfinance charges

    210.1 0.2490 59.8 0.052

    Profit before tax

    (PBT)

    11487.7 13.6160 25569.6 22.22

    Provision for tax:

    Current incometax

    3009.0 3.5665 7126.2 6.19

    (+)/(-) deferredincome taxliability/asset

    (67.9) (0.0805) (51.2) (0.044)

    (+) fringe benefit

    tax

    75.0 0.089 - -

    (+)(-) taxadjustment forprevious year

    - - -

    Total income tax 3016.1 3.75 7075 6.15

    Profit after tax

    (NPA)

    8471.6 10.04 18494.6 16.07

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    Common - Sized Balance Sheet

    Year 2006-20072006 2007

    PARTICULARS

    Rs in

    crores c.s %

    Rs in

    crores c.s%

    SOURCES OF FUNDSSHAREHOLDERS FUND

    Share Capital 1011.8 1.6 1011.8 1.39

    Reserves and Surplus 46695.5 73.82 54331.4 75.10

    LOAN FUNDS

    Secured Loans 0.2 0.0003 224.6 0.31

    Unsecured Loans 14671.3 23.19 16029.7 22.16

    DEFERRED TA ADJUSTMENTS

    DEFERRED TAX LIABILITY 1902.1 3.00 1844.9 2.55DEFERRED TAX ASSETS (1026.3) (1.62) (1103.2) (1.52)

    TOTAL 63254.6 100 72339.2 100

    APPLICATION OF FUNDS:

    FIXED ASSETS

    Gross Block 28928.8 45.73 31744.1 43.88

    Less Depreciation 17787.2 28.12 19224.4 26.57

    Net Block 11141.6 17.61 12519.7 17.31

    Capital Work-in-Progress 241.8 0.38 269.2 0.37

    INVESTMENTS 58569.7 92.59 64475.3 89.13

    CURRENT ASSETS, LOANS AND

    ADVANCES

    Inventories 2729.3 4.31 3097.0 4.28

    Sundry Debtors 3015.5 4.77 5298.3 7.32

    Cash and Bank Balances 820.9 1.29 834.8 1.15

    Other Current Assets 721.3 1.14 362.2 0.50

    Loans and Advances 21273.7 33.63 28594.0 39.53

    Less CURRENT LIABILITIES AND

    PROVISIONSCurrent Liabilities 12288.7 19.43 14989.7 20.72

    Provisions 23158.9 36.61 28337.9 39.17

    NET CURRENT ASSETS (6886.9) (10.88) (5141.3) (7.1)

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    Common - Sized Balance Sheet

    Year 2008-09

    2008 2009

    Rs(in

    crores)

    C.S

    %

    Rs(in

    crores)

    C.S.

    %

    SOURCES OF FUNDS

    SHAREHOLDERS FUND

    Share Capital 1446.8 4.93 1446.8 4.20

    Reserves and Surplus 14429.1 49.19 17250.1 50.09

    LOAN FUNDS

    Secured Loans 69.5 0.24 -

    Unsecured Loans 13273.9 45.26 15700.0 45.59

    DEFERRED TAX ADJUSTMENTS

    DEFERRED TAX LIABILITY 1419.4 4.84 1647.9 4.78DEFERRED TAX ASSETS (1309.6) 4.46 (1606.0) 4.66

    TOTAL 29329.1 100 34438.8 100

    APPLICATION OF FUNDS:

    FIXED ASSETS

    Gross Block 29841.5

    101.7

    4 33339.4 96.80

    Less Depreciation 17260.7 58.85 18079.1 52.5

    Net Block 12580.8 42.89 15260.3 44.31

    Capital Work-in-Progress 347.4 1.18 220.6 0.64

    INVESTMENTS 18571.4 63.32 18085.2 52.51

    CURRENT ASSETS, LOANS AND

    ADVANCES

    Inventories 3496.1 11.92 3388.4 9.84

    Sundry Debtors 2753.1 9.38 3586.5 10.41

    Cash and Bank Balances 560.7 1.91 1368.7 3.97

    Other Current Assets 799.5 2.72 1256.8 3.65

    Loans and Advances 8887.7 30.30 13652.3 39.64

    Less CURRENT LIABILITIES AND

    PROVISIONS

    Current Liabilities 10432.5 35.57 12134.1 35.23

    Provisions 8340.4 28.44 12241.5 35.54

    NET CURRENT ASSETS 18722.9 63.84 24375.6 70.78

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    Common - Sized Balance Sheet

    Year 2009-2010

    2009 2010

    Rs(incrores)

    C.S%

    Rs(incrores)

    C.S.%

    SOURCES OF FUNDS

    SHAREHOLDERS FUND

    Share Capital 1446.8 4.20 1446.8 3.31

    Reserves and Surplus 17250.1 50.09 27836.6 63.72

    LOAN FUNDS

    Secured Loans - 129.8 0.29

    Unsecured Loans 15700.0 45.59 13256.0 30.34

    DEFERRED TAX ADJUSTMENTS

    DEFERRED TAX LIABILITY 1647.9 4.78 1918.1 4.4

    DEFERRED TAX ASSETS (1606.0) 4.66 (1901.2) 4.35

    TOTAL 34438.8 100 43686.1 100

    APPLICATION OF FUNDS:

    FIXED ASSETS

    Gross Block 33339.4 96.80 33792.5 77.35

    Less Depreciation 18079.1 52.5 18996.6 43.48

    Net Block 15260.3 44.31 14795.9 33.87

    Capital Work-in-Progress 220.6 0.64 415.2 0.95

    INVESTMENTS 18085.2 52.51 40215.2 92.05

    CURRENT ASSETS, LOANS AND

    ADVANCES

    Inventories 3388.4 9.84 4462.1 10.21

    Sundry Debtors 3586.5 10.41 2728.4 6.24

    Cash and Bank Balances 1368.7 3.97 1014.1 2.32

    Other Current Assets 1256.8 3.65 1059.7 2.42

    Loans and Advances 13652.3 39.64 20745.2 47.48

    Less CURRENT LIABILITIES AND

    PROVISIONS

    Current Liabilities 12134.1 35.23 20262.5 46.38

    Provisions 12241.5 35.54 22487.2 51.47

    NET CURRENT ASSETS 24375.6 70.78 42749.7 97.85

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    Horizontal AnalysisHorizontal Balance Sheet

    Year 2006-2007

    2006 2007

    Inc/decr Average

    %SOURCES OF FUNDS

    SHAREHOLDERS FUND

    Share Capital 1011.8 1011.8 - -

    Reserves and Surplus 46695.5 54331.4 7635.9 16.35

    LOAN FUNDS

    Secured Loans 0.2 224.6 224.4 112200

    Unsecured Loans 14671.3 16029.7 1358.4 9.26

    DEFERRED TA ADJUSTMENTSDEFERRED TAX LIABILITY 1902.1 1844.9 (57.2) (3.01)

    DEFERRED TAX ASSETS (1026.3) (1103.2) 76.9 7.49

    TOTAL 63254.6 72339.2 9084.6 14.36

    APPLICATION OF FUNDS:

    FIXED ASSETS

    Gross Block 28928.8 31744.1 2815.3 9.73

    Less Depreciation 17787.2 19224.4 1437.2 8.08

    Net Block 11141.6 12519.7 1378.1 12.37

    Capital Work-in-Progress 241.8 269.2 27.4 11.33

    INVESTMENTS 58569.7 64475.3 5905.6 10.08

    CURRENT ASSETS, LOANS AND

    ADVANCES

    Inventories 2729.3 3097.0 367.7 13.47

    Sundry Debtors 3015.5 5298.3 2282.8 75.70

    Cash and Bank Balances 820.9 834.8 13.9 1.69

    Other Current Assets 721.3 362.2 359.1 49.79

    Loans and Advances 21273.7 28594.0 7320.3 34.41

    Less CURRENT LIABILITIES ANDPROVISIONS

    Current Liabilities 12288.7 14989.7 2701 21.98

    Provisions 23158.9 28337.9 5178.9 22.36

    NET CURRENT ASSETS (6886.9) (5141.3) (1745.6) (25.35)

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    Horizontal Balance SheetYear 2009-2010

    2009 2010 Inc/dec %age

    SOURCES OF FUNDS

    SHAREHOLDERS FUNDShare Capital 1446.8 1446.8 - -

    Reserves and Surplus 17250.1 27836.6 10586.5 61.37

    LOAN FUNDS

    Secured Loans - 129.8 129.8 100

    Unsecured Loans 15700.0 13256.0 (2444) 15.57

    DEFERRED TAX ADJUSTMENTS

    DEFERRED TAX LIABILITY 1647.9 1918.1 270.2 16.40

    DEFERRED TAX ASSETS (1606.0) (1901.2) (295.2) (18.38)

    TOTAL 34438.8 43686.1 9247.3 26.85

    APPLICATION OF FUNDS:

    FIXED ASSETS

    Gross Block 33339.4 33792.5 453.1 1.36

    Less Depreciation 18079.1 18996.6 917.5 5.07

    Net Block 15260.3 14795.9 (464.4) (3.04)

    Capital Work-in-Progress 220.6 415.2 194.6 88.21

    INVESTMENTS 18085.2 40215.2 22130 122.37

    CURRENT ASSETS, LOANS ANDADVANCES

    Inventories 3388.4 4462.1 1073.7 31.69

    Sundry Debtors 3586.5 2728.4 (858.1) (23.93)

    Cash and Bank Balances 1368.7 1014.1 (354.6) (25.91)

    Other Current Assets 1256.8 1059.7 (197.1) (15.68)

    Loans and Advances 13652.3 20745.2 7092.9 51.95

    Less CURRENT LIABILITIES AND

    PROVISIONS

    Current Liabilities 12134.1 20262.5 8128.4 66.99Provisions 12241.5 22487.2 (9754.3) (79.68)

    NET CURRENT ASSETS 24375.6 42749.7 18374.1 75.38

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    CASH FLOW ANALYSIS

    Summary of Cash flow

    Mar ' 10 Mar ' 09Profit before tax 2,411.13 958.09

    Net cashflow-operating activity 2,737.11 411.49

    Net cash used in investing activity -2,163.62 -207.66

    Netcash used in fin. activity -608.95 -123.03

    Net inc/dec in cash and equivlnt -35.46 80.80

    Cash and equivalnt begin of year 136.87 56.07

    Cash and equivalnt end of year 101.41 136.87

    A. CASH FROM OPERATING ACTIVITIES :

    Sources of Cash

    1: The primary source of cash for bajaj is the operating activities. It indicates a strong cashposition.

    2: In 2010, Bajaj had a net cash inflow in respect of net current liabilities/assets. This indicatesan efficient management of working capital.3: Growth in volume and improved cost performance resulted in higher cash from operationsduring the year.Non operating Cash Flow : It consists of interest and dividend income earned on fund invested inmutual fund.

    B. INVESTING ACTIVITIESFor a property, plant and equipments bajaj had a net cash outflow.

    1. This activity indicates purchasing more fixed assets.

    2.

    So this will help to find the indication of an expansion business.3. Bajaj was very aggressive in aquring running business during 2009.

    4. Bajaj sold investments rather to purchase in 2009.

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    Increase in Working Capital : Increase / (Decrease) was mainly on account of the following:Decrease in InventoryIncrease in Sundry DebtorsIncrease in Loans & AdvanceIncrease in Liabilities & Provisions

    C. FINANCING ACTIVITIES:

    Uses of Cash

    Net Capital Expenditure : Company has spent Rs (1166.7).Increase in Investments : Company invested surplus funds, subsidiries, joint ventures andassociates.Decrease in Borrowings : Companys borrowings reduced as a result of repayment of long term /

    short term loans, fixed term loans etc.