my final report2

8/12/2019 My Final Report2

1/92

A

PROJECT REPORT

ONSTUDYING THE IMPACTS OF DEBT ON THE PROFITABILITY AND

LIQUIDITY OF THE KRISHNA MARUTI LIMITED

KRISHNA MARUTI LIMITEDSUBMITTED TO:

Kurukshetra University Kurukshetra

in the Partia! "u!#i!!$ent #%r the De&ree %# Master in Business A'$inistrati%n

(Sessi%n )**+,)**-*.,MBA,/r'Se$ester

Un'er Su0ervisi%n %# : Su1$itte' By 2

Ms.Shilpa Chawla RICHA NANDA

Faculty,MBA D/ Sh. ASH!K NANDA

U"i#. R$% N. &'() D*+)--

U"i#. Rll N. I"stitut$ Rll N, --/'


2/92

Ti!ak Ra3 Cha'ha Institute %# Mana&e$ent an' Te4hn%!%&y (TIMT.0A11iliat$2 t Ku3u4sh$t3a U"i#$3sity, Ku3u4sh$t3a 5 App3#$2 6y AICTE7M.L.N.Cll$%$ E2ucati"al C8pl$9, +a8u"a Na%a3)-:''- 0Ha3ya"a7

Ph5'-;


3/92


4/92

ACKNO;>ED?EMENT

=$3s$#$3a"c$, 2ili%$"c$, i"spi3ati" a"2 8ti#ati" ha#$ always play$2 a 4$y 3l$ i" th$ t3iu8ph1 a"y #$"tu3$. I" th$ p3$s$"t w3l2 1 wallpi"% c8p$titi", a p3>$ct is li4$ly t apcalyps$ a"$9us 6$tw$$" th$3$tical 4"wl$2%$ a"2 p3actical w34i"%.

Fi3st 1 all, I wul2 li4$ t tha"4 th$ pa3a8u"t pw$3, th$ ulti8at$ i8p$cca6l$ c3$at3, th$al8i%hty *2, wh is th$ "$ wh has always 2i3$ct$2 8$ t w34 " th$ 3i%ht path 1 8y li1$.ith his %3ac$, this p3>$ct cul2 6$c8$ a 3$ality.

STUDYING THE IMPACTS OF DEBT ON THE PROFITABILITY AND

LIQUIDITY OF THE KRISHNA MARUTI LIMITED.

A"y acc8plish8$"t 3$?ui3$s th$ $113t 1 8a"y p$pl$ a"2 this w34 is "t 2i11$3$"t .Fi3stly, Iwul2 li4$ t $9t$"2 8y si"c$3$ tha"4s a"2 %3atitu2$ t Mr5 SA@ANI (E6e4utive Dire4t%r%0erati%ns. KRISHNA MARUTI LTD. ,*UR*A!N 13 his a6l$ %ui2a"c$, 3$%ula3 cu"s$li"%,4$$" i"t$3$st a"2 c"sta"t $"cu3a%$8$"t, withut which th$ p3>$ct wul2 "t ha#$ 63i88$2 t13uiti". I a8 $9t3$8$ly %3at$1ul t Dr5 IKAS DARA> (DIRECTOR. Ms5 ?ARIMA?UPTA @5O5D5 (TIMT.a"2 8y 3$s$a3ch %ui2$ als, 13 th$i3 h$lp1ul attitu2$, 3$%ula3 cachi"%a"2 i"spi3ati".

I w$ 8y si"c$3$ly tha"4s t all $8ply$$s 1 KRISHNA MARUTI LTD., 13 th$i3

supp3t %i#$" t 8$ ti8$ t ti8$. Als, I wul2 li4$ t tha"4 all 8y 13i$"2s a"2 1a8ily 8$86$3s13 th$i3 supp3t %i#$" t 8$ ti8$ t ti8$. I 2"t ha#$ w32s t $9p3$ss 8y tha"4s ""$th$l$ss,8y h$a3t is 1ull 1 %3atitu2$ 13 th$ 1a#3s 3$c$i#$2 6y 8$ 138 $#$3y p$3s".


5/92

EECUTIE SUMMAR

Th$ p3i8$ 6>$cti#$ 1 8y stu2y was t stu2y th$ i8pact 1 i"c3$asi"% 2$6t " th$ p31ita6ilitya"2 li?ui2ity 1 th$ c8pa"y. I als t4 th$ h$lp 1 3ati a"alysis i" 8y stu2y t 4"w a6ut th$1i"a"cial psiti" 1 th$ c8pa"y.Th$ 1i3st s$cti" i"clu2$s i"t32ucti" t K3ish"a Ma3uti Lt2. Th$ succ$ssi#$ chapt$3 i"t32uc$sus with th$ p3>$ct, %i#$s p3p$3 2$1i"iti" t th$ p36l$8, 6>$cti#$s 1 th$ stu2y, si%"i1ica"c$ 1u"2$3ta4i"% this p3>$ct a"2 2$1i"$s th$ li8itati"s a"2 scp$ 1 th$ stu2y.Th$ thi32 s$cti" 63i$1s us a6ut th$ way 1 ca33yi"% ut th$ 3$s$a3ch 8$th2l%y, which i"tu3"s t$lls a6ut th$ sa8pli"%, 2ata cll$cti" 8$th2s, 1i$l2 w34, a"alysis a"2 i"t$3p3$tati" $tcth$" is %i#$" th$ 3$sults a"2 1i"2i"%s 2$#is$2 ut 1 th$ 3$s$a3ch p3>$ct. Th$ 6i6li%3aphy a"2

a""$9u3$ 1llw this. I hp$ that this 3$p3t will p3#$ 6$ us$1ul 13 th$ 8a"a%$8$"t t ca3#$ut th$ p3p$3 sluti"s put 13th.


6/92

C!NTENTS


7/92

TAB>E O" CONTENTS

Tpic =a%$ N.

-7 I"t32ucti"


8/92

I"2ia"Aut86il$

I"2ust3y


9/92

I"2ia" Aut86il$ I"2ust3yI"2ia" aut86il$ i"2ust3y has c8$ a l"% way t 138 th$ $3a 1 th$ A86assa23 ca3 t Ma3uti'' t lat$st c$l$3i. A" i"2ust3y is hi%hly c8p$titi#$ with a "u86$3 1 %l6al a"2 I"2ia"

c8pa"i$s p3$s$"t t2ay. It is %3wi"% at a pac$ 1 a3u"2 - p$3 a""u8 13 th$ last 1i#$ y$a3sa"2 is p3>$ct$2 t 6$ th$ thi32 la3%$st aut i"2ust3y 6y ys ;: 8a34$t sha3$ 1 aut86il$ i"2ust3y,1llw$2 6y pass$"%$3 #$hicl$s with th$ - sha3$ 1 8a34$t. Th3$$ wh$$l$3 s$%8$"ts ha#$8$3$ly ( sha3$ i" 28$stic 8a34$t. Th$ 28$stic tw)wh$$l$3 8a34$t is 28i"at$2 6y I"2ia"as w$ll as 13$i%" play$3s such as H$3 H"2a, Ba>a> Aut, H"2a Mt3s, TGS Mt3s, a"2Suu4i $tc. Ma3uti U2y% a"2 Tata Mt3s a3$ th$ l$a2i"% pass$"%$3 ca3 8a"u1actu3$3s i" th$

cu"t3y. A"2 I"2ia is c"si2$3$2 as st3at$%ic 8a34$t 6y Suu4i, +a8aha, $tc.

Th$ 8a>3 play$3s ha#$ "t l$1t a"y st"$ u"tu3"$2 t 6$ %l6al. Ma>3 1 th$ play$3s ha#$ %ti"t th$ 8$3%$3 acti#iti$s with th$i3 13$i%" cu"t$3pa3ts. Li4$ Ma3uti with Suu4i, H$3 withH"2a, Tata with Fiat a"2 lat$st Mahi"23a with R$"ault.

I" tw)wh$$l$3 s$%8$"t, 8t3cycl$s ha#$ th$ 8a>3 sha3$, H$3 H"2a, th$ l$a2i"% 6i4$8a"u1actu3$3 has 83$ tha" :' sha3$ i" tw)wh$$l$3 s$%8$"t, 1llw$2 6y Ba>a> Aut. I"pass$"%$3 ca3 s$%8$"t, Ma3uti Suu4i c"t3i6ut$s th$ :


10/92

REGA, 4"w" as *)i i" Eu3p$, is th$ w3l2Js la3%$st s$lli"% $l$ct3icca3.

Tata Na"is th$ l$ast $9p$"si#$ ca3 i" p32ucti" i" th$ w3l2. Th$p3ic$ is a6ut Rs.-'',''' 0USwhich ha8p$3$2 th$ I"2ia" p3i#at$ s$ct3. A1t$3 -;', th$ aut8ti#$ i"2ust3ysta3t$2 t %3w, 6ut th$ %3wth was 8ai"ly 23i#$" 6y t3act3s, c88$3cial #$hicl$s a"2 sct$3s.Ca3s w$3$ still a 8a>3 lu9u3y @apa"$s$8a"u1actu3$3s $"t$3$2 th$ I"2ia" 8a34$t ulti8at$lyl$a2i"% t th$ $sta6lish8$"t 1Ma3uti U2y%. A "u86$3 1 13$i%" 1i38s i"itiat$2 >i"t #$"tu3$swith I"2ia" c8pa"i$s.

I" th$ -'s, a "u86$3 1 @apa"$s$ 8a"u1actu3$3s lau"ch$2 >i"t)#$"tu3$s 13 6uil2i"%8t3cycl$s a"2 li%ht c88$3cial)#$hicl$s. It was at this ti8$ that th$ I"2ia" %#$3"8$"t chs$Suu4i13 its >i"t)#$"tu3$ t 8a"u1actu3$ s8all ca3s. Fllwi"% th$ $c"8ic li6$3aliati" i"-- a"2 th$ %3a2ual w$a4$"i"% 1 th$ lic$"s$ 3a>, a "u86$3 1 I"2ia" a"2 8ulti)"ati"al ca3c8pa"i$s lau"ch$2 p$3ati"s. Si"c$ th$", aut8ti#$ c8p"$"t a"2 aut86il$8a"u1actu3i"% %3wth has acc$l$3at$2 t 8$$t 28$stic a"2 $9p3t 2$8a"2s.

Ti8$li"$ 1 I"2ia" aut86il$ i"2ust3y&

-; Fi3st =$3s" t w" a ca3 i" I"2ia ) M3 Fst$3 1 M/s C38pt" *3$a#$s C8pa"y,Mu86ai

-'- Fi3st I"2ia" t w" a ca3 i" I"2ia ) @a8sh$2@i Tata -': Fi3st 8a" t 23i#$ a ca3 i" I"2ia ) M3s. Sua""$ RD Tata

-':FiatMt3s

--- Fi3st Ta9i i" I"2ia

-


11/92

-(:Tata Mt3s

-(;Mahi"23a 5 Mahi"23a Li8it$2

-(Ash4 Mt3s

-(Sta"2a32 Mt3s

-;(Sipa"i Mt3s --Ma3uti Suu4i

-(R#$3 C8pa"y

-(M$3c$2$s)B$"

-(*$"$3al Mt3s I"2ia ) !p$l63a"2 lau"ch

-:F32 Mt3 C8pa"y

-:H"2a Si$l Ca3s I"2ia

-:REGA El$ct3ic Ca3 C8pa"y

-:Da$w Mt3s

-Hyu"2ai Mt3 C8pa"y

-;Tyta Ki3ls4a3 Mt3s -;FiatMt3s 0R$)E"t3y7

- Sa" Mt3s

-Mitsu6ishi Mt3s


12/92

Out!%%k

I"2ias ca3 8a34$t has $8$3%$2 as "$ 1 th$ 1ast$st %3wi"% i" th$ w3l2. Th$ "u86$3 1 ca3s sl2 28$stically isp3>$ct$2 t 2u6l$ 6y


13/92

Hyu"2ai Mt3 C8pa"y) $9p3tsHyu"2ai Sa"t3, i-', Hyu"2ai *$t, i


14/92

Ba>a> Aut Lt2& A4u32i, MIDC =i8p3i)Chi"chwa2,=u"$,Maha3asht3a

Capa3 & Ch$""ai, Ta8il Na2u.

Ch$#3l$t& Hall, *u>3at.

Dai8l$3 &Ch$""ai, Ta8il Na2u.

Fiat& =u"$0Ra">a"%a"7, Maha3asht3a. F32&Ch$""ai,Ta8il Na2u.

F3c$ Mt3s&=u"$,Maha3asht3a

*$"$3al Mt3s&Tal$%a" Da6ha2$0=u"$7, Maha3asht3a

Hi"2usta" 8t3s& Ch$""ai, Ta8il"a2u, a"2Kl4ata, $st B$"%al.

H"2a& *3$at$3 Ni2a, Utta3 =3a2$sh.

Hyu"2ai& Ch$""ai, Ta8il Na2u.

@h" D$$3$ 0T3act37& Sa"aswa2i 0=u"$7, Maha3asht3a

Ki"$tic Mt3 C8pa"y Li8it$2& M.I.D.C., =i8p3i)Chi"chwa2=u"$,Maha3asht3a

Mahi"23a&Nashi4,Maha3asht3a Ka"2i#ali,Maha3asht3aI%atpu3i, Maha3asht3aahi3a6a2, A"2h3a

=3a2$sh a"2 Ha3i2wa3, Utta3a4ha"2. M$3c$2$s)B$"& =u"$, Maha3asht3a.

Mitsu6ishi& Thi3u#allu3, Ch$""ai,Ta8il Na2u.

R$"ault)Nissa"& Ch$""ai,Ta8il Na2u.

42a&Au3a"%a6a2, Maha3asht3a

Suu4i& *u3%a", Ha3ya"a, a"2 Ma"$sa3, Ha3ya"a.

TAFE T3act3s &Ch$""ai, Ta8il Na2u.

Tata&Luc4"w,Utta3 =3a2$sh=i8p3i)Chi"chwa2 0=u"$7 Maha3asht3a@a8sh$2pu3, @ha34ha"2Ha3i2wa3,

Utta3a4ha"2 a"2 Sa"a"2, *u>a3at.

TGS Mt3s,Ch$""ai, Ta8il Na2u.

Tyta& Ba"%al3$, Ka3"ata4a.

Gl4swa%$"& Tal$%a" Da6ha2$ 0=u"$7, Maha3asht3a

Gl# T3uc4s& Ba"%al3$, Ka3"ata4a

In'ian Aut%$%1i!e In'ustry ,)**+

All th$ 8a>3 aut c8pa"i$s $">y$2 th$ hi%h %3wth 3i2$ till th$ 8i2


15/92


16/92

KRIS@NA MARUTI >IMITED

KML $"t$3$2 th$ aut i"t$3i3 8a"u1actu3i"% 6usi"$ss with a si"%l$ p32uct 0s$ati"% syst$8 13Ma3uti '' CC Ca37 i" y$a3 -(. K3ish"a Ma3uti Lt2. 0KML7 was i"c3p3at$2 i" y$a3 -( as

a" a"cilla3y t Ma3uti U2y% Lt2. 0MUL7, 13 th$ supply 1 Ca3 s$ats. KML is >i"t #$"tu3$6$tw$$" M3. Ash4 Kapu3, MUL, a"2 Suu4i Mt3 C3p3ati" a"2 has t$ch"ical clla63ati"with SNIC 1 @apa" 13 s$at 2$si%" a"2 8a"u1actu3i"%. Th$ stat$ 1 th$ a3t pla"t is lcat$2 atD$lhi)@aipu3 Hi%hway, Na3si"%hpu3 *u3%a" 0Ha3ya"a7, a"2 sp3$a2 #$3 a" a3$a 1 1i#$ ac3$.Th$ i"stall$2 capacity 1 pla"t is (,''',''' s$at s$t p$3 a""u8.

T2ay K3ish"a *3up has si9 pla"ts 13 a 2i11$3$"t 3a"%$ 1 ca3 i"t$3i3s li4$ 23 t3i8s, R1


17/92

H$a2 li"$3s, R$a3 #i$w 8i333s, Sh$$t 8$tal c8p"$"ts a"2 au2it3iu8 s$ats all a3$ lcat$2 i"*u3%a". 0=l$as$ s$$ A""$9u3$7. Ttal %3up utlay is Rs. :'' Milli". T2ay KML8a"u1actu3$ 2i11$3$"t p32ucts with #$3 -'' 2i11$3$"t 82$ls.

KML ca8$ i"t th$ $9ist$"c$, wh$" th$3$ w$3$ $sta6lish$2 s$at 8a"u1actu3$3 13 suppli$s tMa3uti. $ st3i#$2 ha32 t p3#$ u3s$l#$s 6$tt$3 tha" th$3s a"2 t2ay w$ %t th$ 2isti"cti" asth$ 8st 1a#3$2 suppli$3 t MUL, a"2 $">yi"% : 1 MUL s$ati"% 6usi"$ss, which is 8uch83$ tha" a"y th$3 c8p$tit3 wh w$3$ i" 6usi"$ss 6$13$ w$ ca8$ i"t 6usi"$ss.

KML has 6$$" th$ p3u2 3$cipi$"t 1 1llwi"% 1i#$ 8a>3 awa32s 138 MUL, at last y$a3 #$"23c"1$3$"c$.

B$st GA/GE awa32B$st !#$3all p$3138a"c$ awa32B$st $113t 1 Cst 3$2ucti" awa32B$st $113t 13 #$"23 up %3a2ati" awa32KAIEN awa32

N$#$3th$l$ss, Satis1i$2 with 8st 2$li%ht$2 cust8$3 li4$, MUL, KML "$#$3 l4$2 6ac4,3$la9$2 6ut 4$pt " 3$#isi"% a"2 achi$#i"% s$t ta3%$ts, KML achi$#$8$"ts i" th$ a3$a 1 ?uality,Cst, D$li#$3y, has 6$c8$ a 6$"ch8a34 13 th$3s i"2ust3i$s.

KML has als achi$#$2 1llwi"% ?uality c$3ti1icat$s.

TS-(IS! -('''!HSAS -'''D$8i"% awa32=u3sui"% twa32s TM.

!#$3 th$ past 1$w y$a3s, KML has 6$$" up%3a2i"% s1twa3$ 2$si%" tls, p3ttypi"% 1aciliti$s,t$sti"% $?uip8$"ts a"2 a6#$ all $"%i"$$3i"% a"2 2$si%" s4ills 13 6$tt$3 p3$pa3$2 13 th$Chall$"%$ 1 AFTA, T! a"2 T3a2$ *l6aliati". !u3 $"%i"$$3s ha#$ 6$$" w34i"% t%$th$3with u3 t$ch"ical pa3t"$3s t up%3a2$ th$i3 s4ills a"2 t$ch"ical 4"wl$2%$.

Th$ 6ac46"$ 1 K3ish"a %3up is its c3p3at$ R5D c$"t$3, $sta6lish$2 with a" i"#$st8$"t 1Rs. -'' 8illi" a"2 has 2isti"cti" as a app3#$2 la6 6y %#t. 1 I"2ia, capa6l$ 1 c"2ucti"%t$sts as p$3 @apa"$s$ sta"2a32s, Eu3p$a" H8l%ati". EEC/ECE, @AS! 5 @IS.


18/92

IS! -(''-, $"#i3"8$"t c$3ti1icat$ s$3#$s t shw that KML is c88itt$2 t 6$i"% a 3$sp"si6l$c3p3at$ citi$" 6y $"su3i"% that w$ ta4$ h$$2 t 8i"i8i$ a"2 wh$3$ pssi6l$ $li8i"at$,$"#i3"8$"t u"13i$"2ly su6sta"c$.

Ma>3 cust8$3s a3$ Ma3uti U2y% Lt2., H"2a Si$l, *M, F!RD a"2 HREC 0STU7.

KML a3$ I"2iaJs Fi3st Ttal Aut I"t$3i3 *3up 1 C8pa"i$s 8a"u1actu3i"% all th$3$?ui3$8$"ts 1 aut i"t$3i3s i"clu2i"% S$ati"% Syst$8s, R$a3 Gi$w Mi333s, H$a2 R$stAss$86li$s, A38 R$st Ass$86li$s, S$at T3i8s 0C#$3s7, I">$cti" Mul2$2 D3 T3i8s, R1li"$3s 5 Mul2$2 Ca3p$ts.

KML 3$ach$2 all this i" sh3t spa" 1 ti8$ 6$caus$ KML 1i38ly p3actic$ J ) FJ p3i"cipl$th3u%hut th$ 3%a"isati"&

"%4use'& Fcus twa32s cust8$3 2$li%ht, $"%i"$$3i"% i"13ast3uctu3$, cstc"scius"$ss a"2 c"ti"uus i8p3#$8$"ts th3u%h J: ) SJ, JKai$"sJ,

uality Ci3cl$ M$$ti"%s a"2 Su%%$sti" M$$ti"%s.

"ast& Fast syst$8 5 t$ch"l%ical up ) %3a2ati" a"2 i8pl$8$"tati".

"!e6i1!e& Fl$9i6l$ twa32s cust8$3 3$?ui3$8$"ts.

"rien'!y& C3$ati"% 13i$"2ly $"#i3"8$"t a8"% cust8$3, $8ply$$s 5


19/92

#$"23s.

"ir$& Fi38ly a2h$3i"% t lai2 2w" plici$s 5 p3c$2u3$s 5

"un& Achi$#i"% th$ ta3%$ts i" stipulat$2 ti8$.

I" 32$3 t 6$ a l$a2$3 i" its 1i$l2, a st3"% c$"t3ali$2 R D Center01i3st 1 its 4i"2 i" cu"t3y7was $sta6lish$2 with a" i"#$st8$"t 1 -.: Milli". This c$"t$3 is th$ 6$st i" th$ cu"t3y a"2 is3$c%"i$2 6y th$ De0art$ent %# S4ienti#i4 In'ustria! Resear4h Ministry %# S4ien4e Te4hn%!%&y ?%vt5 %# In'ia.This c$"t$3 is capa6l$ 1 "t "ly t$sti"% as p$3 I"t$3"ati"alSta"2a32s 6ut ca" als issu$ T$st C$3ti1icat$s t th$3 S$at 8a"u1actu3$3s. This t$st c$"t$3 ca"als p$3138 t$st 13 "" ) Aut8ti#$ c8p"$"ts 13 E"2u3a"c$ 5 R$p$ata6ility.

HIST!R+ !F KML

It was i" - wh$" M3. Ash4 Kapu3 sta3t$2 K3ish"a Ma3uti Lt2. s$at 2i#isi", a >i"t #$"tu3$t supply ca3 s$ats t Ma3uti U2y% Lt2. Si"c$ th$" h$ has "$#$3 tu3"$2 6ac4 a"2 6$li$#$s i""ly l4i"% ah$a2.

It is th$ ha32 w34 a"2 p$3s$#$3a"c$ 1 - y$a3s 5 a 63ai" 1 a" a3chit$ct wh 4"ws hw t6uil2 a hi%h 3is$ " a sli2 plat138 that has pa#$2 th$ way 13 Th$ K3ish"a *3up.

T2ay th$ $9ist$"c$ 1 K3ish"a %3up with 8a"u1actu3i"% pla"ts, i"13ast3uctu3$ c8pa"y,8$2ia, 1l3 5 1u3"ishi"%, tu3s 5 t3a#$ls a3$ th$ 6$st $9a8pl$ 1 his "$#$3 2yi"% app3ach 12i#$3si1yi"% i" th$ a%$ 1 c8p$titi". M3. Kapu3Js philsphy 1 putti"% th$ cust8$3 1i3st haspai2 1 ha"2s8$ly 5 "w K3ish"a %3up is "$ 1 th$ yu"%$st 2i#$3si1i$2 %3up which is%i"% t tuch a tu3"#$3 1 INR -' 6illi" 0-''' c33$7 6y "$9t y$a3.

His s", M3.Su"a"2a" Kapu3 t$a8$2 up with hi8 i" -. Si"c$ th$" h$ has 6$$" 3$sp"si6l$ 13#a3ius c8pa"i$s u"2$3 Th$ K3ish"a *3up a"2 is cu33$"tly i")cha3%$ 1 a "$wly ac?ui3$2

c8pa"y call$2 SKH M$tals Lt2.

M3. Kapu3 has 6$$" h"3$2 ti8$s c"s$?u$"tly 6y his cust8$3s 13 6$st #$3all p$3138a"c$.

Schl 1 i""#ati" 8a"a%$8$"t, T4y has h"u3$2 M3. Kapu3 6y passi"% " his t$achi"%st th$ "$w %3a2uat$s.


20/92

His 2$si3$ t p3i3itis$ ?uality p$31$cti" lai2 u3 s$ati"% 2i#isi" t "t "ly wi" th$ D$8i"%Awa32 6ut als t 6$c8$ th$ w3l2Js 1i3st 5 yu"%$st s$ati"% c8pa"y t ha#$ this h"u3.

-()-: ) Esta6lish$2 K3ish"a Ma3uti Lt2., a >i"t #$"tu3$ 6$tw$$" Ash4 Kapu3 5Assciat$s, Ma3uti U2y% Lt2., a"2 Suu4i Mt3 C3p3ati" t 8a"u1actu3$aut8ti#$ s$ats i" t$ch"ical clla63ati" with SNIC C. Lt2. 1 @apa".

-)-; ) Esta6lish$2 K3ish"a Ty Lt2., a >i"t #$"tu3$ 6$tw$$" Ash4 Kapu3 5Assciat$s a"2 Ty Lt2. t 8a"u1actu3$ aut8ti#$ 8i333s i" t$ch"ical clla63ati"with Ty Lt2. 1 @apa".

-;)- ) Esta6lish$2 K3ish"a =a2s Lt2., a >i"t #$"tu3$ 6$tw$$" Ash4 Kapu3 5

Assciat$s a"2 K3ish"a Ma3uti Lt2. t 8a"u1actu3$ aut8ti#$ h$a2 3$sts a"2=lyU3$tha"$ 0=U7 p32ucts.

-;)- ) Esta6lish$2 R$s$a3ch 5 D$#$lp8$"t 0R5D7 c$"t$3 as p$3 Eu3p$a"H8l%ati".

-)- ) Esta6lish$2 K3ish"a T3i8s Lt2., a >i"t #$"tu3$ 6$tw$$" Ash4 Kapu3 5Assciat$s a"2 K3ish"a Ma3uti Lt2. t 8a"u1actu3$ aut8ti#$ s$at t3i8s.

-)i"t #$"tu3$ 6$tw$$" K3ish"aMa3uti Lt2. a"2 *3up a"tli" t 8a"u1actu3$ 31 h$a2li"$3s i" t$ch"ical clla63ati"

with *3up A"tli" 1 Spai". Esta6lish$2 K3ish"a ui"$tt$ *all$y, a >i"t #$"tu3$ 6$tw$$" Ash4 Kapu3 5

Assciat$s a"2 ui"$tt$ *all$y t 8a"u1actu3$ au2it3iu8 5 ci"$8a s$ats i"t$ch"ical clla63ati" with ui"$tt$ *all$y 1 F3a"c$.


21/92

13"t susp$"si", a"2 8$t?al pa3ts i" t$ch"ical clla63ati" with Fatu6a 1 @apa",!4a8t 1 @apa", a"2 Ma%"$tti Ma3$lli 1 Italy.

Esta6lish$2 SKH Aut C8p"$"ts Lt2. th3u%h a 8$3%$3 1 K3ish"a T3i8s Lt2.

a"2 K3ish"a =a2s Lt2.

Esta6lish$2 K3ish"a Ma3uti Lt2. ) Mul2$2 Ca3p$t Di#isi".

Th$ >u3"$y twa32s p$31$cti" is still "....

KML philsphy

K3ish"a *3up ta4$ a tu3" 13 6$tt$3 i" ttality .S8all$3 , 1$w$3, li%ht$3 , sh3t$3, 5 6$auti1ul.Ma9i8 ?uality 5 8i"i8i$ $9p$"s$s.

KML c3p3at$ philsphy is QRES=ECT F!R INDIGIDUALQ. Th$i3 $8ply$$s, a3$ th$i3%3$at$st ass$ts. Th$i3 1utu3$ %3wth 2$p$"2s %3$atly up" $9c$ll$"c$ i" hu8a" 3$su3c$8a"a%$8$"t a"2 $#$lp8$"t.


22/92

Th$i3 11$3 $?ual %3wth pp3tu"iti$s ac3ss th$ !3%a"isati". C8pa"y p3#i2$s c"2uci#$$"#i3"8$"t 13 $8ply$$Js %3wth, 6y p3#i2i"% t3ai"i"% a"2 $9psu3$ 13 #$3all 2$#$lp8$"twith a #i$w t 8a4$ th$8 a6l$ t shul2$3 a22$2 3$sp"si6iliti$s.K3ish"a ha#$ a 13i$"2ly w34 at8sph$3$ i" th$ 2ay)t)2ay w34i"%. All 1a8ily 8$86$3s a3$13$$ t clla63at$ a"2 c88u"icat$, a"2 8ai"tai" a s8th a"2 st$a2y 3hyth8 1 w34 with 1ullc88it8$"t.

B%ar' %# Dire4t%rs


23/92

T$sti"% 1acility


24/92

Th$ R D Centerhas 6$$" $sta6lish$2 with th$ ai8 1 63i"%i"% i""#ati" i" s$ati"% syst$8s6y i"c3p3ati"% lat$st p3i"cipl$s i" s$at 2$si%". KML is th$ 1i3st s$ati"% 8a"u1actu3i"% c8pa"yi" th$ cu"t3y t $sta6lish such a" a2#a"c$ 1acility. This c$"t$3 was $sta6lish$2 with a"i"#$st8$"t 1 -.: Milli". This c$"t$3 is capa6l$ 1 c"2ucti"% t$sts as p$3 Eur%0ean@%$%!%&ati%n (EEC=ECE="MSS. an' Ja0anese Stan'ar's (JASO." "t "ly aut8ti#$s$ati"% syst$8s 6ut als " th$3 c8p"$"ts wh$3$i" 3$p$ata6ility a"2 $"2u3a"c$ li1$ has t 6$asc$3tai"$2.

Th$ t$st 3i%s a3$ c$3ti1i$2 6y ehi4!e Certi#i4ati%n A&en4y (CA. %# UK. Th$ c$"t$3 is3$c%"is$2 6y th$ De0art$ent %# S4ienti#i4 In'ustria! Resear4h Ministry %# S4ien4e an'Te4hn%!%&y ?%vt5 %# In'ia.

Th$ s$t ) up i"clu2$s i1rati%n Test Ri& "ree "!i&ht I$0a4t Test Ri& an' Stati4=Dyna$i4Stren&th Test Ri&5Th$ s1twa3$ us$2 13 th$s$ Ri%s p32uc$s p3$cis$ wa#$138s $.%. Si"$,T3ia"%ula3, S?ua3$ a"2 Ra8ps.

=32ucts !1 K3ish"a Ma3uti


25/92

$ a3$ 4"w" 13 u3 i""#ati#$ p32ucts a"2 a2#a"c$2 t$ch"l%y which ha#$ 6$$" si%"i1ica"t1act3s i" u3 %3wth. !u3 c"ti"u$2 1cus " ?uality, c3a1ts8a"ship, $9$cuti" a"2 %l6al6$"ch8a34i"% a3$ 4$y $l$8$"ts 1 u3 way 1 2i"% 6usi"$ss.$ ha#$ $9p$3tis$ i" 8a"u1actu3i"% th$ 1llwi"% p32ucts&Aut86il$ S$ats

S$ati"% Syst$8s

R$a3 Gi$w Mi333s

H$a2 5 A38 R$sts

S$at T3i8s

Au2it3iu8 S$at

I">$cti" Mul2$2 D3 T3i8s R1 li"$3s

KML sta3t$2 its p$3ati"s with "ly - 82$l a"2 ap32ucti" capa6ility 1 (' s$ts/2ay. Ta2y w$8a"u1actu3$ - 2i11$3$"t 82$ls. K3ish"a Ma3utiLi8it$2 has a p32ucti" capacity 1 ('',''' S$ati"%Syst$8s/ a""u8.

=3$s$"tly K3ish"a Ma3uti Li8it$2 p32uc$s - 2i11$3$"t Ga3ia"ts 1 s$ati"% syst$8s 1 1llwi"% M2$lsESTEEM ;A?ON R EN OMNI MARUTI +**44 A>TO5

K3ish"a Ma3uti Li8it$2 has capa6iliti$s t Ma"u1actu3$ S$ati"% Syst$8s as a" !E t pt$"tial cust8$3s1 p32ucts
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26/92

C8pa"y p32uc$s a 3a"%$ 1 !utsi2$ 5 I"si2$ R$a3 Gi$w Mi333 Ass$86li$s 13 Ma3uti U2y%Li8it$2 a"2 H"2a Si$l Ca3s I"2ia Li8it$2.

ith : !E 8a34$t sha3$, E#$3y Fi1th I"2ia" Ca3 has R$a3 Gi$w Mi333 Ass$86ly8a"u1actu3$2 6y K3ish"a Ty Li8it$2.

Th$ 3a"%$ ca" $asily 6$ $9t$"2$2 t suit th$ 3$?ui3$8$"ts 1 th$3 Aut Ma"u1actu3$3s.

Th$ @i"t G$"tu3$ a%3$$8$"t 6$tw$$" Ash%k ka0ur Ass%4ia4tes a"2 T%y% In'ustries C%5

>t'5was si%"$2 " )*th 'ay %# De45 -88F5Th$ C%$$er4ia! 0r%'u4ti%nsta3t$2 i" Se0te$1er-88G5

T%y% >i$ite' is Ja0anHs Thir' !ar&est Mirr%r Manu#a4turer an' 4aters t% 8* %# SuukiHs

t%ta! reuire$ents in Ja0an5

Ty has 8a"u1actu3i"% 1aciliti$s i" Thaila"2 a"2 I"2"$sia as w$ll.

tyJs Fi#$ 2$ca2$ 1 E9p$3i$"c$ i" 1i$l2 1 Aut Mi333 ha#$ 6$$" i"c3p3at$2 at all l$#$ls a"2at all sta%$s.

All 1aciliti$s 3$?ui3$2 13 $"su3i"% th$ uality 1 I"put =a3ts a"2 =32ucts ha#$ 6$$" p3#i2$2.Faciliti$s 13 t$sti"% Mi333 Ass$86li$s as p$3 I"t$3"ati"al Sta"2a32s a3$ a#aila6l$. erys0e4ia!ie' test are 4%n'u4te' at T%y%Hs "a4i!ity in Ja0an5All th$ C8p"$"ts, =a3ts 5=32ucts a3$ p32ucti"is$2 a1t$3 2u$ app3#al 138 TyJs .C, @apa".


27/92

Krishna Pa's >i$ite' us$s NC C"t3ll$2 =u38at Hi%h ) =3$ssu3$ Fa8i"% Machi"$ 13 its1a8i"% applicati" 13 p32uci"% @ea' Rest 5 Ar$ Rest Asse$1!ies 13 all 82$ls 1Ma3utiJs Ca3.

K3ish"a =a2s is w34i"% twa32s ac?ui3i"% ISO 8**) 4erti#i4ati%ni" this y$a3. Twa32s this$"2, all ?uality/w34 p3c$2u3$s ha#$ 6$$" i8pl$8$"t$2 a"2 a3$ 6$i"% st3ictly 1llw$2.

H$a23$st 2$1$l$ti" t$st a"2 i8pact t$sts a3$ c"2uct$2 3$%ula3ly t $"su3$ c8plia"c$ as p$3statut3y 3$?ui3$2 p$3138a"c$ pa3a8$t$3s 1 s$ats. As a Bac4wa32 I"t$%3ati" E9$3cis$,Krishna Pa's >i$ite' (KP>.was $sta6lish$2 i" +$a3 -88G5K3ish"a Ma3uti Li8it$2 hl2s -'$?uity i" th$ c8pa"y.


28/92

This c8pa"y 8a"u1actu3$s H$a2 R$st a"2 A38 R$st Ass$86li$s a"2 is th$ si"%l$ su3c$ 13K3ish"a Ma3uti Li8it$2. K3ish"a =a2s Li8it$2 is I"2iaJs La3%$st Ma"u1actu3$3 1 H$a2 R$st 5A38 R$st Ass$86li$s.

This K3ish"a Ma3uti Li8it$2 p38t$2 C8pa"y t8a"u1actu3$Seat Tri$s (C%ver.was $sta6lish$2 i" +$a3-88G5 K3ish"a Ma3uti Li8it$2 hl2s -' $?uity i" th$c8pa"y.

K3ish"a T3i8s Li8it$2 is I"2iaJs La3%$st S$at C#$3 Ma"u1actu3i"% C8pa"y. Stat$ 1 a3tcutti"% 5 stitchi"% 8achi"$s a3$ us$2 t 8a"u1actu3$ p32ucts

Th$ C8pa"y has a 8a"u1actu3i"% capacity 1 )*****S$t p$3 a""u8.

K3ish"a T3i8s Li8it$2 is cat$3i"% K3ish"a Ma3uti Li8it$2Js ttal 3$?ui3$8$"t 1 t3i8s. K=Lp3#i2$s th$s$ it$8s 13 th$ 1llwi"% ca3s &

Sta"2a32 ''!8"i Ga" HR$"Est$$8a%a" RBal$"

T3i8 6$i"% a 8st i8p3ta"t c8p"$"t 13 ?uality s$at, KML 2$ci2$2 t $sta6lish K3ish"aT3i8s Li8it$2 13 $"su3i"% supply 1 hi%h ?uality t3i8s. 34i"% " *3up uality =licy, KTLsen's its tea$" 3$%ula3 6asis t SNIC C%$0any , Ja0an #%r trainin&5 E60erts138 SNICC%$0any , Ja0an a3$ invite' re&u!ar!y t KTL 13 i$0artin& trainin& int% 'esi&nin&Cuttin& Stit4hin& 0atterns 13 T3i8s t t$a8 at KT>.


29/92

It was this $113t that 3$sult$2 i" KTL ac?ui3i"% ISO 8**) 4erti#i4ate


30/92

@uly i$ite' a"2 Luinette ?a!!ay %#"RANCEwas si%"$2 " -th 2ay 1 @a"


31/92

Ra>sh3i Luc4"wN#$lty Luc4"wM#i$ Tal4i$s Mu86aiMa"ipal Aca2$8y 1 Hi%h$3 E2ucati"Sci$"ti1ic C"#$"ti"al C$"t3$ atK*MU ) Luc4"w=GR Hy2$3a6a2=GR Mu86ai

This 2i#isi" 8a"u1actu3$3s&

D3 T3i8sR1 H$a2li"$3sCa3p$ts

F3 p32uci"% I">$cti" Mul2$2 D3 T3i8s, w$ ha#$ Tshi6aJs 0@apa"7 -'' T""$ Machi"$sa"2 13 th$ Ass$86li"% 1 #a3ius plastic pa3ts t%$th$3, w$ us$ B3a"s"Js 0USA7 Ult3as"ic$l2i"% =3c$ss.

F3 u3 R1li"$3s, w$ ha#$ M$y$3Js 0*$38a"y7 La8i"ati" Machi"$ 5 Th$38138i"%Machi"$. $ a3$ th$ "ly I"2ia" C8pa"y t us$ Twi" H$a2 R6tic at$3 ) @$t Cutti"%Machi"$ 138 ABB ) IR Sw$2$".

Th$ c8pa"y is all s$t t us$ its sp$cialty i" I">$cti" Ml2i"% 13 p32uci"% c8p"$"ts 13hit$ *2 I"2ust3y.


32/92

I" li"$ with u3 #isi" t6$c8$ In'iaHs "irst Sin&!eSt%0 S%!uti%n #%r C%$0!ete

Aut% Interi%rsthis 2i#isi"was $sta6lish$2 .F3 p32uci"% D3 T3i8s, this2i#isi" has Te4hni4a!C%!!a1%rati%n with O@TAS@EET %# Ja0an5

Th$ 8ai" 6>$cti#$ 1 this 2i#isi" is t p32uc$&

D%%r Tri$s

R%%# @ea'!iners

Car0ets

This 2i#isi" i"c$pt$2 i" @u"$ -. I" Li"$ with c8pa"y philsphy 1 2i"% th$ p3>$ctswithut cst 3 Ti8$ #$33u" this 0r%3e4t


33/92

.

As p$3 th$ T$ch"ical Clla63ati" A%3$$8$"t !HTA SHEET p3#i2$s th$ ttal K"w ) Hw3i%ht 138 th$ s$l$cti" 1 Raw Mat$3ials, Machi"$s, Ma"u1actu3i"% =3c$ss a"2 t$sti"%Faciliti$s.

I" li"$ 1 Gisi" 1 6$c8i"% a 3l2 Class Ma"u1actu3i"% C8pa"y th$ =hilsphy 1 TM is1llw$2 th3u%h ) ut. Th$ !3%a"isati" i8pl$8$"ts th$ 6$st 1 Ma"u1actu3i"% a"2Ma"a%$8$"t T$ch"i?u$s si"c$ i"c$pti".

KML ) DTD w34s " th$ p3i"cipal that HCust%$er is ?%'H. F3 us uality is th$ ay 1 Li1$.Th$ C8pa"y is c88itt$2 t uality a"2 Cust8$3 D$li%ht i" t$38s 1 Ttal uality, Cst 5D$li#$3y i.$. Ri%ht ua"tity, Ri%ht =3ic$ 5 Ri%ht =lac$.

KML ) DTD is w34i"% p3%3$ssi#$ly twa32s S ''' a"2 is hp$1ul 1 achi$#i"% th$ sa8$withi" this y$a3.

Th$ 2i#isi" was s$tup i" Ju!y )*** 5 th$ 8achi"$s 13 la8i"ati" 5 th$381a8i"% wasc88issi" i" De4e$1er )***. Th$ c88$3cial p32ucti" sta3t$2 i" "e1 )**-.This pla"t ca"8a"u1actu3$)***** R%%# @ea'!iners1 #a3ius 82$ls p$3 y$a3.

F3 La8i"ati" 1 Su6st3at$s, "u!!y Aut%$ati4 C%ntinu%us >a$inati%n Ma4hine #r%$ Meyer, ?er$any is us$2. Th$Ma4hine is capa6l$ 1 la8i"ati"% upt#ive 'i##erent $ateria!st%$th$3 i"a si"%l$ p$3ati". F3 8ul2i"% th$ La8i"at$2 Su6st3at$s i"t th$ 3$?ui3$2 shap$, th$Ther$%#%r$in& Pressis us$2. This Press is @i&h Ca0a4ity Sin&!e A4tin& @y'rau!i4 Ma4hine


34/92

!utsu3ci"%

At K3ish"a th$ 6asic 3aw 8at$3ials us$2 a3$ &

=lyu3$tha"$ 3aw 8at$3ials t p32uc$ 8ul2$2 cushi" pa2s )=lyls 5 Iscy"at$s.

CRCA sh$$t 8$tal c8p"$"ts.

Tu6ula3 l$"%ths 1 #a3ius si$s.

at$3 slu6l$ 6lac4 pai"ts 5 p3$ t3$at8$"t ch$8ical.

=GC 1a63ics.

La8i"at$2 ply$st$3 5 ctt" 1a63ics.

i3$ Sp3i"%


35/92

=lyp3pyl$"$ 13 i">$cti" 8ul2$2 c8p"$"ts.

Ha32wa3$ it$8s.

Ga3ius i"2ust3ial c"su8a6l$s li4$ 8i% wi3$, a2h$si#$s, sa1$ty it$8s, spt w$l2i"%

$l$ct32$s $tc.

S$at a2>ust$3 8$cha"is8 ass$86li$s.

S$at 3$cli"$3 8$cha"is8 ass$86li$s.

R$a3 s$at lc4 ass$86li$s.

Aut8ti#$ 1a63ic.

T3$a2s.

Su6st3at$ 13 31 h$a2li"$303i%i2 1a87.

Mi333 sh$$ts.

F$lt 13 8ul2$2 ca3p$t.

N$$2l$ pu"ch 1a63ic 13 8ul2$2 ca3p$t.

CRCE sh$$t.

N" ) w#$" 1a63ic

Fast$"$3s 13 #a3ius si$s.

Lua!ity


36/92

C8pa"y has 6$$" c$3ti1i$2 asISO 8**) in year -88G 1y TU Bayran an' LS 8*** in ear-889 1y A in4%tte Be!&iu$5

Twa32s u3 ?u$st t 6$c8$ a 3l2 Class C8pa"y, w$ at KML c88$"c$2 th$ TMMissi" >i"tly 3%a"i$2 6y CII a"2 MUL si"c$ -.

At K3ish"a Ma3uti Li8it$2 w$ a3$ ttally c88itt$2 t uality Sta"2a32s s$t 6y u3 cust8$3s.Our !ine re3e4ti%n is !ess than F** PPM an'


37/92


38/92

DEBT PRO"I>E O" T@E COMPAN

Ttal D$6t 3ais$2 6y KML&


39/92


40/92

S%ur4es %# se4ure' an' unse4ure' 'e1t raise' 1y the 4%$0any


41/92

RATIO ANA>SIS ( Rati%s re!ate' .

"INANCIA> ANA>SIS

Fi"a"cial a"alysis is th$ p3c$ss 1 i2$"ti1yi"% th$ 1i"a"cial st3$"%ths a"2w$a4"$ss$s 1 th$ 1i38 a"2 $sta6lishi"% 3$lati"ship 6$tw$$" th$ it$8s 1 th$ 6ala"c$ sh$$t a"2p31it 5 lss accu"t.

Fi"a"cial 3ati a"alysis is th$ calculati" a"2 c8pa3is" 1 3atis, which a3$2$3i#$2 138 th$ i"138ati" i" a c8pa"ys 1i"a"cial stat$8$"ts. Th$ l$#$l a"2 hist3ical t3$"2s1 th$s$ 3atis ca" 6$ us$2 t 8a4$ i"1$3$"c$s a6ut a c8pa"ys 1i"a"cial c"2iti", itsp$3ati"s a"2 att3acti#$"$ss as a" i"#$st8$"t. Th$ i"138ati" i" th$ stat$8$"ts is us$2 6y

T3a2$ c3$2it3s, t i2$"ti1y th$ 1i38s a6ility t 8$$t th$i3 clai8s i.$. li?ui2ity psiti" 1

th$ c8pa"y.

I"#$st3s, t 4"w a6ut th$ p3$s$"t a"2 1utu3$ p31ita6ility 1 th$ c8pa"y a"2 its1i"a"cial st3uctu3$.

Ma"a%$8$"t, i" $#$3y asp$ct 1 th$ 1i"a"cial a"alysis. It is th$ 3$sp"si6ility 1 th$

8a"a%$8$"t t 8ai"tai" su"2 1i"a"cial c"2iti" i" th$ c8pa"y.

RATIO ANA>SIS

Th$ t$38 Rati 3$1$3s t th$ "u8$3ical a"2 ?ua"titati#$ 3$lati"ship 6$tw$$"tw it$8s 3 #a3ia6l$s. This 3$lati"ship ca" 6$ $9ps$2 as

=$3c$"ta%$s

F3acti"s

=3p3ti" 1 "u86$3s

Rati a"alysis is 2$1i"$2 as th$ syst$8atic us$ 1 th$ 3ati t i"t$3p3$t th$ 1i"a"cialstat$8$"ts. S that th$ st3$"%ths a"2 w$a4"$ss$s 1 a 1i38, as w$ll as its hist3ical p$3138a"c$a"2 cu33$"t 1i"a"cial c"2iti" ca" 6$ 2$t$38i"$2. Rati 3$1l$cts a ?ua"titati#$ 3$lati"ship h$lps

t 138 a ?ua"titati#$ >u2%8$"t.

STEPS IN RATIO ANA>SIS

Th$ 1i3st tas4 1 th$ 1i"a"cial a"alysis is t s$l$ct th$ i"138ati" 3$l$#a"t t th$ 2$cisi"

u"2$3 c"si2$3ati" 138 th$ stat$8$"ts a"2 calculat$s app3p3iat$ 3atis.


42/92

T c8pa3$ th$ calculat$2 3atis with th$ 3atis 1 th$ sa8$ 1i38 3$lati"% t th$ past 3

with th$ i"2ust3y 3atis. It 1acilitat$s i" ass$ssi"% succ$ss 3 1ailu3$ 1 th$ 1i38.

Thi32 st$p is t i"t$3p3$tati", 23awi"% 1 i"1$3$"c$s a"2 3$p3t w3iti"% c"clusi"s a3$

23aw" a1t$3 c8pa3is" i" th$ shap$ 1 3$p3t 3 3$c88$"2$2 cu3s$s 1 acti".

BASIS OR STANDARDS O" COMPARISON

Ratis a3$ 3$lati#$ 1i%u3$s 3$1l$cti"% th$ 3$lati" 6$tw$$" #a3ia6l$s. Th$y $"a6l$a"alyst t 23aw c"clusi"s 3$%a32i"% 1i"a"cial p$3ati"s. Th$y us$ 1 3atis as a tl 11i"a"cial a"alysis i"#l#$s th$ c8pa3is" with 3$lat$2 1acts. This is th$ 6asis 1 3ati a"alysis.Th$ 6asis 1 3ati a"alysis is 1 1u3 typ$s.

=ast 3atis, calculat$2 138 past 1i"a"cial stat$8$"ts 1 th$ 1i38.

C8p$tit3s 3ati, 1 th$ s8$ 8st p3%3$ssi#$ a"2 succ$ss1ul c8p$tit3 1i38 at th$

sa8$ pi"t 1 ti8$.

I"2ust3y 3ati, th$ i"2ust3y 3atis t which th$ 1i38 6$l"%s t

=3>$ct$2 3atis, 3atis 1 th$ 1utu3$ 2$#$lp$2 138 th$ p3>$ct$2 3 p3 138a 1i"a"cial

stat$8$"ts

NATURE O" RATIO ANA>SIS

Rati a"alysis is a t$ch"i?u$ 1 a"alysis a"2 i"t$3p3$tati" 1 1i"a"cial stat$8$"ts. It is th$p3c$ss 1 $sta6lishi"% a"2 i"t$3p3$ti"% #a3ius 3atis 13 h$lpi"% i" 8a4i"% c$3tai" 2$cisi"s. Itis "ly a 8$a"s 1 u"2$3sta"2i"% 1 1i"a"cial st3$"%ths a"2 w$a4"$ss$s 1 a 1i38. Th$3$ a3$ a"u86$3 1 3atis which ca" 6$ calculat$2 138 th$ i"138ati" %i#$" i" th$ 1i"a"cial stat$8$"ts,6ut th$ a"alyst has t s$l$ct th$ app3p3iat$ 2ata a"2 calculat$ "ly a 1$w app3p3iat$ 3atis. Th$1llwi"% a3$ th$ 1u3 st$ps i"#l#$2 i" th$ 3ati a"alysis.

S$l$cti" 1 3$l$#a"t 2ata 138 th$ 1i"a"cial stat$8$"ts 2$p$"2i"% up" th$ 6>$cti#$ 1

th$ a"alysis.

Calculati" 1 app3p3iat$ 3atis 138 th$ a6#$ 2ata.

C8pa3is" 1 th$ calculat$2 3atis with th$ 3atis 1 th$ sa8$ 1i38 i" th$ past, 3 th$

3atis 2$#$lp$2 138 p3>$ct$2 1i"a"cial stat$8$"ts 3 th$ 3atis 1 s8$ th$3 1i38s 3th$ c8pa3is" with 3atis 1 th$ i"2ust3y t which th$ 1i38 6$l"%s.


43/92


44/92

th$ t3$"2s a"2 3$c$"t 2$#$lp8$"ts i" th$ p3sp$3ity 1 th$ 6usi"$ss a"2th$ 3a"%$ 1 its acti#iti$s as th$y a11$ct th$i3 a3$a

"inan4ia! ana!ysts th$y "$$2 t 4"w, 13 $9a8pl$, th$ accu"ti"% c"c$pts $8ply$2 13

i"#$"t3i$s, 2$p3$ciati", 6a2 2$6ts a"2 s "

Envir%n$enta!

&r%u0s

8a"y 3%a"isati"s "w pu6lish 3$p3ts sp$ci1ically ai8$2 at i"138i"%us a6ut hw th$y a3$ w34i"% t 4$$p th$i3 $"#i3"8$"t cl$a".

Resear4hers 3$s$a3ch$3sJ 2$8a"2s c#$3 a #$3y wi2$ 3a"%$ 1 li"$s 1 $"?ui3y 3a"%i"%138 2$tail$2 statistical a"alysis 1 th$ i"c8$ stat$8$"t a"2 6ala"c$sh$$t 2ata $9t$"2i"% #$3 8a"y y$a3s t th$ ?ualitati#$ a"alysis 1 th$w32i"% 1 th$ stat$8$"ts

?UIDE>INES OR PRECAUTIONS "OR USE O" RATIOS

Th$ calculati" 1 3atis 8ay "t 6$ a 2i11icult tas4 6ut th$i3 us$ is "t $asy.Fllwi"% %ui2$li"$s 3 1act3s 8ay 6$ 4$pt i" 8i"2 whil$ i"t$3p3$ti"% #a3ius 3atis a3$

Accu3acy 1 1i"a"cial stat$8$"ts

!6>$cti#$ 3 pu3ps$ 1 a"alysis

S$l$cti" 1 3atis

Us$ 1 sta"2a32s

Cali6$3 1 th$ a"alysis

>IMITATIONS O" RATIO ANA>SIS

Di11$3$"c$s i" 2$1i"iti"s

Li8itati"s 1 accu"ti"% 3$c32s

Lac4 1 p3p$3 sta"2a32s N allwa"c$s 13 p3ic$ l$#$l cha"%$s

Cha"%$s i" accu"ti"% p3c$2u3$s

ua"titati#$ 1act3s a3$ i%"3$2

Li8it$2 us$ 1 si"%l$ 3ati


45/92

Bac4%3u"2 is #$3 l4$2

Li8it$2 us$

=$3s"al 6ias

C>ASSI"ICATIONS O" RATIOS

Th$ us$ 1 3ati a"alysis is "t c"1i"$2 t 1i"a"cial 8a"a%$3 "ly. Th$3$ a3$2i11$3$"t pa3ti$s i"t$3$st$2 i" th$ 3ati a"alysis 13 4"wi"% th$ 1i"a"cial psiti" 1 a 1i38 132i11$3$"t pu3ps$s. Ga3ius accu"ti"% 3atis ca" 6$ classi1i$2 as 1llws&

-. T3a2iti"al Classi1icati"


46/92

Th$ #a3ius %3ups will 6$ i"t$3$st$2 i" 2i11$3$"t 3atis&

Interest ?r%u0 Rati%s t% en'ers

*$a3i"% 3atis

Mana&ers

=31ita6ility 3atis

E$0!%yees

R$tu3" " Capital E8ply$2

Su00!iers an' %ther tra'e 4re'it%rs

Li?ui2ity

Cust%$ers

=31ita6ility

?%vern$ents an' their a&en4ies =31ita6ility

>%4a! C%$$unity

This cul2 6$ a l"% a"2 i"t$3$sti"% list

"inan4ia! ana!ysts

=ssi6ly all 3atis

Envir%n$enta! &r%u0s

E9p$"2itu3$ " a"ti)plluti" 8$asu3$s


47/92

IN T@E IE; O" "UNCTIONA> C>ASSI"ICATION T@E RATIOS ARE

-. Li?ui2ity 3ati


48/92

C%$0%nents %# 4urrent rati%

CURRENT ASSETS CURRENT >IABI>ITIES

Cash i" ha"2 !ut sta"2i"% 3 acc3u$2 $9p$"s$s

Cash at 6a"4 Ba"4 #$3 23a1t

Bills 3$c$i#a6l$ Bills paya6l$

I"#$"t3i$s Sh3t)t$38 a2#a"c$s

34)i")p3%3$ss Su"23y c3$2it3s

Ma34$ta6l$ s$cu3iti$s Di#i2$"2 paya6l$Sh3t)t$38 i"#$st8$"ts I"c8$)ta9 paya6l$

Su"23y 2$6t3s =3$pai2 $9p$"s$s

(1. LUICK RATIO

uic4 3ati is a t$st 1 li?ui2ity tha" th$ cu33$"t 3ati. Th$ t$38 li?ui2ity 3$1$3s tth$ a6ility 1 a 1i38 t pay its sh3t)t$38 6li%ati"s as 5 wh$" th$y 6$c8$ 2u$. uic4 3ati

8ay 6$ 2$1i"$2 as th$ 3$lati"ship 6$tw$$" ?uic4 3 li?ui2 ass$ts a"2 cu33$"t lia6iliti$s. A" ass$tis sai2 t 6$ li?ui2 i1 it is c"#$3t$2 i"t cash with i" a sh3t p$3i2 withut lss 1 #alu$.

Lui4k %r !iui' assets

Lui4k rati%

Current !ia1i!ities


49/92

C%$0%nents %# ui4k %r !iui' rati%

LUICK ASSETS CURRENT >IABI>ITIES



Bills 3$c$i#a6l$ Bills paya6l$

Su"23y 2$6t3s Sh3t)t$38 a2#a"c$s

Ma34$ta6l$ s$cu3iti$s Su"23y c3$2it3s

T$8p3a3y i"#$st8$"ts Di#i2$"2 paya6l$

I"c8$ ta9 paya6l$

(4. ABSO>UTE >ILUID RATIO

Althu%h 3$c$i#a6l$, 2$6t3s a"2 6ills 3$c$i#a6l$ a3$ %$"$3ally 83$ li?ui2 tha"i"#$"t3i$s, y$t th$3$ 8ay 6$ 2u6ts 3$%a32i"% th$i3 3$aliati" i"t cash i88$2iat$ly 3 i" ti8$.H$"c$, a6slut$ li?ui2 3ati shul2 als 6$ calculat$2 t%$th$3 with cu33$"t 3ati a"2 ?uic4 3atis as t $9clu2$ $#$" 3$c$i#a6l$s 138 th$ cu33$"t ass$ts a"2 1i"2 ut th$ a6slut$ li?ui2 ass$ts.

A1s%!ute !iui' assets

A1s%!ute !iui' rati%

Current !ia1i!ities

A6slut$ li?ui2 ass$ts i"clu2$ cash i" ha"2 $tc. Th$ acc$pta6l$ 138s 13 this 3atiis :' 037 '.:&- 037 -&< i.$., Rs.- w3th a6slut$ li?ui2 ass$ts a3$ c"si2$3$2 t pay Rs.< w3thcu33$"t lia6iliti$s i" ti8$ as all th$ c3$2it3s a3$ "3 acc$pt$2 t 2$8a"2 cash at th$ sa8$ ti8$a"2 th$" cash 8ay als 6$ 3$ali$2 138 2$6t3s a"2 i"#$"t3i$s.


50/92

C%$0%nents %# A1s%!ute >iui' Rati%

ABSO>UTE >ILUID ASSETS CURRENT >IABI>ITIES



I"t$3$st " Fi9$2 D$psit Bills paya6l$

Sh3t)t$38 a2#a"c$s

Su"23y c3$2it3s

Di#i2$"2 paya6l$

I"c8$ ta9 paya6l$

)5 PRO"ITABI>IT RATIOS

Th$ p3i8a3y 6>$cti#$s 1 6usi"$ss u"2$3ta4i"% a3$ t $a3" p31its. B$caus$ p31itis th$ $"%i"$, that 23i#$s th$ 6usi"$ss $"t$3p3is$.

N$t p31it 3ati

R$tu3" " ttal ass$ts

R$s$3#$s a"2 su3plus t capital 3ati

Ea3"i"%s p$3 sha3$

!p$3ati"% p31it 3ati

=3ic$ P $a3"i"% 3ati

R$tu3" " i"#$st8$"ts

(a. NET PRO"IT RATIO

N$t p31it 3ati $sta6lish$s a 3$lati"ship 6$tw$$" "$t p31it 0a1t$3 ta97 a"2 sal$s

a"2 i"2icat$s th$ $11ici$"cy 1 th$ 8a"a%$8$"t i" 8a"u1actu3i"%, s$lli"% a28i"ist3ati#$ a"2th$3 acti#iti$s 1 th$ 1i38.

Net 0r%#it a#ter ta6

Net 0r%#it rati%

Net sa!es


51/92

Net Pr%#it a#ter Ta6 Net Pr%#it (. De0re4iati%n (. Interest (. In4%$e Ta6

Net Sa!es In4%$e #r%$ Servi4es

It als i"2icat$s th$ 1i38s capacity t 1ac$ a2#$3s$ $c"8ic c"2iti"s such asp3ic$ c8p$tit3s, lw 2$8a"2 $tc. !6#iusly hi%h$3 th$ 3ati, th$ 6$tt$3 is th$ p31ita6ility.

(1. RETURN ON TOTA> ASSETS

=31ita6ility ca" 6$ 8$asu3$2 i" t$38s 1 3$lati"ship 6$tw$$" "$t p31it a"2

ass$ts. This 3ati is als 4"w" as p31it)t)ass$ts 3ati. It 8$asu3$s th$ p31ita6ility 1i"#$st8$"ts. Th$ #$3all p31ita6ility ca" 6$ 4"w".

Net 0r%#it

Return %n assets

T%ta! assets

Net Pr%#it Earnin&s 1e#%re Interest an' Ta6

T%ta! Assets "i6e' Assets 7 Current Assets

(4. RESERES AND SURP>US TO CAPITA> RATIO

It 3$#$als th$ plicy pu3su$2 6y th$ c8pa"y with 3$%a32 t %3wth sha3$s. A #$3yhi%h 3ati i"2icat$s a c"s$3#ati#$ 2i#i2$"2 plicy a"2 i"c3$as$2 plu%hi"% 6ac4 t p31it.Hi%h$3 th$ 3ati 6$tt$3 will 6$ th$ psiti".

Reserves sur0!us

Reserves sur0!us t% 4a0ita! Ca0ita!


52/92

('. EARNIN?S PER S@ARE

Ea3"i"%s p$3 sha3$ is a s8all #$3i1icati" 1 3$tu3" 1 $?uity a"2 is calculat$2 6y2i#i2i"% th$ "$t p31its $a3"$2 6y th$ c8pa"y a"2 ths$ p31its a1t$3 ta9$s a"2 p3$1$3$"c$2i#i2$"2 6y ttal ". 1 $?uity sha3$s.

Net 0r%#it a#ter ta6

Earnin&s 0er share

Nu$1er %# Euity shares

Th$ Ea3"i"%s p$3 sha3$ is a %2 8$asu3$ 1 p31ita6ility wh$" c8pa3$2 withE=S 1 si8ila3 th$3 c8p"$"ts 037 c8pa"i$s, it %i#$s a #i$w 1 th$ c8pa3ati#$ $a3"i"%s 1 a1i38.

(e. OPERATIN? PRO"IT RATIO

!p$3ati"% 3ati $sta6lish$s th$ 3$lati"ship 6$tw$$" cst 1 %2s sl2 a"2 th$3p$3ati"% $9p$"s$s " th$ "$ ha"2 a"2 th$ sal$s " th$ th$3.

O0eratin& 4%st

O0erati%n rati%

Net sa!es

Hw$#$3 ;: t : 8ay 6$ c"si2$3$2 t 6$ a %2 3ati i" cas$ 1 a8a"u1actu3i"% u"2$3 ta4i"%. !p$3ati"% p31it 3ati is calculat$2 6y 2i#i2i"% p$3ati"% p31it 6y

sal$s.

O0eratin& 0r%#it Net sa!es , O0eratin& 4%st

O0eratin& 0r%#it

O0eratin& 0r%#it rati% Sa!es


53/92

(#. PRICE , EARNIN? RATIO

=3ic$ $a3"i"% 3ati is th$ 3ati 6$tw$$" 8a34$t p3ic$ p$3 $?uity sha3$ a"2 $a3"i"%sp$3 sha3$. Th$ 3ati is calculat$2 t 8a4$ a" $sti8at$ 1 app3$ciati" i" th$ #alu$ 1 a sha3$ 1 ac8pa"y a"2 is wi2$ly us$2 6y i"#$st3s t 2$ci2$ wh$th$3 037 "t t 6uy sha3$s i" a pa3ticula3c8pa"y.

*$"$3ally, hi%h$3 th$ p3ic$)$a3"i"% 3ati, th$ 6$tt$3 it is. I1 th$ p3ic$ $a3"i"% 3ati1alls, th$ 8a"a%$8$"t shul2 l4 i"t th$ caus$s that ha#$ 3$sult$2 i"t th$ 1all 1 th$ 3ati.

Pri4e Earnin& Rati% Market Pri4e 0er Share

Earnin&s 0er Share

Ca0ita! 7 Reserves Sur0!us

Market Pri4e 0er Share

Nu$1er %# Euity Shares

Earnin&s 1e#%re Interest an' Ta6

Earnin&s 0er Share

Nu$1er %# Euity Shares

(&. RETURN ON INESTMENTS

R$tu3" " sha3$ hl2$3s i"#$st8$"t, ppula3ly 4"w" as R$tu3" " i"#$st8$"ts037 3$tu3" " sha3$ hl2$3s 3 p3p3i$t3s 1u"2s is th$ 3$lati"ship 6$tw$$" "$t p31it 0a1t$3i"t$3$st a"2 ta97 a"2 th$ p3p3i$t3s 1u"2s.


54/92

Net 0r%#it (a#ter interest an' ta6.

Return %n shareh%!'ers invest$ent

Shareh%!'ers #un's

Th$ 3ati is %$"$3ally calculat$2 as p$3c$"ta%$s 6y 8ultiplyi"% th$ a6#$ with-''.


55/92

Rati%s O#KM>


56/92

>ILUIDIT RATIO

-5 CURRENT RATIO

(A$%unt in Rs5.

Current Rati%

Year Current Aet Current L!a"!#!t!e Rat!$

)**F


57/92

(A$%unt in Rs5.

Lui4k Rati%

Year Qu!%& Aet Current L!a"!#!t!e Rat!$

)**F TE >ILUIDIT RATIO

(A$%unt in Rs5.


58/92

A1s%!ute Cash Rati%

Year A"$#ute L!'u!( Aet Current L!a"!#!t!e Rat!$

)**F -;


59/92

?ENERA> PRO"ITABI>IT RATIOS

5 NET PRO"IT RATIO

(A$%unt in Rs5.

Net Pr%#it Rati%

Year Net Pr$)!t A)ter Ta* In%$+e )r$+ Sa#e Rat!$,-

)**F


60/92

F5 OPERATIN? PRO"IT

(A$%unt in Rs5.

O0eratin& Pr%#it

Year O/erat!n0 Pr$)!t In%$+e Fr$+ Sa#e Rat!$

)**F -(-:


61/92

95 RESERES SURP>US TO CAPITA> RATIO

(A$%unt in Rs5.

Reserves Sur0!us T% Ca0ita! Rati%

ear Reer1e 2 Sur/#u Ca/!ta# Rati%

)**F -:


62/92

OERA>> PRO"ITABI>IT RATIOS

+5 EARNIN?S PER S@ARE

(A$%unt in Rs5.

Earnin&s Per Share

Year Net Pr$)!t A)ter Ta* N$ $) E'u!t3 S4are Rat!$

)**F


63/92

-5 RETURN ON INESTMENT

(A$%unt in Rs5.

Return %n Invest$ent

Year Net Pr$)!t A)ter Ta* S4are H$#(er Fun( Rat!$ ,-

)**F


64/92


65/92

BA>ANCES@EET

P>

ACCOUNTBala"c$ sh$$t


66/92

-7Fi9$2 Ass$ts

a7*3ss Blc4

67l$ss & 2$p3$ciati"

c7N$t Blc4

27Capital 34 I" =3%3$ss

$7=3$p$3ati#$ E9p$"s$s =$"2i"%


67/92


68/92

O13e4tives

O# The

Stu'y


69/92

=3i8a3y 6>$cti#$s &

T stu2y th$ i8pact 1 2$6t 06i1$3cat$2 i"t s$cu3$2 a"2 u"s$cu3$2 2$6t7 3ais$2 2u3i"%


70/92


71/92

C!NSTRUCT

I8pacts 1 2$6t 3s$ 2u3i"%


72/92

Lit$3atu3$R$#i$wCONCEPTUA> >ITERATURE

C!NCE=TUAL LITERATURE is that which 3$lat$s with c"c$pts 5 th$3i$s. H$lp 138 2i11$3$"t 64s shul2 6$

ta4$" 13 2i11$3$"t c"c$pts 5 th$3i$s.

EMPIRICA> >ITERATURE

E$0iri4a! !iterature c"sists 1 stu2y 8a2$ 6y th$3s i" th$ sa8$ 1i$l2.

=UBLISHED DATA IN NES=A=ER

B!!KS 5 MA*AINES AGAILABLE

DISCUSSI!N ITH =E!=LE !F !R*ANIATI!N

The !iterature revie< in4!u'es the a4a'e$i4 1%%ks

internet a44ess et45

-. D"al2 R. Cp$3 a"2 =a8$la S. Schi"2l$3-, Busi"$ss R$s$a3ch M$th2l%y Ei%hth

E2iti" Tata Mc*3aw Hill =u6lishi"% C8pa"y Li8it$2, N$w D$lhi. Chapt$3 , =a%$


73/92

(. ?u0ta S5P5QQSTATISTICA> MET@ODSQ. Th$ i"138ati" 3$%a32i"% th$ statistical

tls a"2 th$i3 li8itati"s i" 2i11$3$"t 1i$l2s th$ 3$s$a3ch is %i#$" i" this s$cti". This

s$cti" $9plai"s why t us$ 3$%3$ssi" a"2 what a3$ th$ situati"s i" which 3$%3$ssi" ca"

6$ us$2 a"2 what is th$ 8$a"i"% 1 3$%3$ssi". Statistics, 'th $2iti", Sulta" Cha"2 5

s"s 0pa%$ "& ;)(-7.:. Statistical M$th2s) Sulta" Cha"2 =u6licati" Th$ i"138ati" 3$%a32i"% th$ statistical

tls a"2 th$i3 li8itati"s i" 2i11$3$"t 1i$l2s th$ 3$s$a3ch is %i#$" i" this s$cti". This

s$cti" $9plai"s why t us$ t3$"2 a"alysis a"2 what a3$ th$ situati"s i" which 3$%3$ssi"

ca" 6$ us$2, a"2 what 2$s 3$%3$ssi" 8$a"s. Mah$shwa3i S.N Ma"a%$8$"t accu"ti"% 5 1i"a"cial c"t3l th$ i"138ati"

3$%a32i"% th$ 8$a" 1 i"#$"t3y capital 8a"a%$8$"t. Th$ 6asic i2$a t ta4$ that=3>$ct I ha#$ %t 138 this 64 0pa%$ "-()-(:7.

;. Kha" M.+. 5 @ai" =.K. Fi"a"cial Ma"a%$8$"t th$ i"138ati" 3$%a32i"% th$ i"#$"t3y

8a"a%$8$"t $tc.,Fi"a"cial Ma"a%$8$"t,th $2iti"0pa%$ ")(.;:7.

. B$3i *.C. ) Ma34$ti"% R$s$a3ch 32$2iti"& This 64 h$lp$2 i" u"2$3sta"2i"% th$

2i11$3$"t 3$s$a3ch 2$si%"s a"2 statistical tls us$2 h$3$.. Cha"23a =a3sha"t, Fi"a"cial Ma"a%$8$"t:th$2iti",0pa%$")


74/92

-:. >e%0%!' A5 Bernstein J%hn J5 ;i!' -, Ana!ysis %# "inan4ia! State$entsQ

R$#$al$2 applicati" 1 sp$cial cash 1lw a2$?uacy 3ati5 c8pa3ati#$ 1i"a"cial

a"alysis.

-. ach"ic @3. @h" M. 5 Ga" H38$ @a8$s C. Fi"a"cial Ma"a%$8$"t $2. -. 0=HI7

Ei%ht E2iti" , Mu86ai--

-;. A""ual R$p3t


75/92


76/92

S w$ shul2 c"si2$3 th$ 1llwi"% st$ps i" 3$s$a3ch 8$th2l%y-

"RAME;ORK

Ga3ia6l$s cl$a3lyi2$"ti1i$2 a"2

la6$ll$2

F

*ENERATI!N!F

H+=!THESES

G

SCIENTIFIC

RESEARCH DESI*N

-

OBSERATION

B3a2 a3$a 13$s$a3ch i"t$3$st

i2$"ti1i$2

9

DATA C!LLECTI!N,ANAL+SIS AND

INTER=RETATI!N

+

DEDUCTI!NHypth$s$ssu6sta"tiat$2R$s$a3ch?u$sti"a"sw$3$2

8

R$p3tw3iti"%

-*

R$p3t=3$s$"tati"

--

Ma"a%$3ial2$cisi"8a4i"%

+$sN!


77/92

A 3$s$a3ch is th$ a33a"%$8$"t 1 th$ c"2iti"s 13 th$ cll$cti"s a"2 a"alysis 1 th$ 2ata i" a8a""$3 that ai8s t c86i"$ 3$l$#a"c$ t th$ 3$s$a3ch pu3ps$ with $c"8y i" p3c$2u3$. I"1act, th$ 3$s$a3ch is 2$si%" is th$ c"c$ptual st3uctu3$ withi" which 3$s$a3ch is c"2uct$2 itc"stitut$s th$ 6lu$ p3i"t 1 th$ cll$cti", 8$asu3$8$"t a"2 a"alysis 1 th$ 2ata. As s$a3ch th$2$si%" i"clu2$s a" utli"$ 1 what th$ 3$s$a3ch$3 will 2 138 w3iti"% th$ hypth$sis a"2 itsp$3ati"al i8plicati" t th$ 1i"al a"alysis 1 2ata.

Th$ 2$si%" is such stu2i$s 8ust 6$ 3i%i2 a"2 "t 1l$9i6l$ a"2 8st 1cus att$"ti" " th$1llwi"%

hat is th$ stu2y a6uthy is th$ stu2y 6$i"% 8a2$h$3$ will th$ stu2y 6$ ca33i$2 uthat typ$ 1 2ata is 3$?ui3$2

h$3$ ca" 6$ 3$?ui3$2 2ata 6$ 1u"2hat p$3i2 1 ti8$ will th$ stu2y i"clu2$hat will 6$ sa8pl$ 2$si%"hat t$ch"i?u$s 1 2ata cll$cti" will 6$ us$2Hw will th$ 2ata 6$ a"aly$2I" what styl$ will th$ 3$p3t 6$ p3$pa3$2

R$s$a3ch D$si%" ca" 6$ cat$%3i$2 as-


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79/92

Typ$s 1 i"#$sti%ati"&

Esta6lishi"% Casual 3$lati"ship

C33$lati"

*3up 2i11$3$"c$s, 3a"4s $tc.

Typ$ 1 i"#$sti%ati" i" 8y stu2y will 6$ c33$lati". B$caus$ 8y 8ai" 8ti#$ is t ch$c4wh$th$3 th$3$ is si%"i1ica"t 3$lati"ship 6$tw$$" th$ 2$6t 3ais$2 a"2 p31ita6ility a"2 li?ui2ity 1th$ c8pa"y. S i"#$sti%ati" typ$ will 6$ c33$lati" typ$.

E9t$"t 1 3$s$a3ch$3 i"t$31$3$"c$ i" stu2y&

Mi"i8al& stu2yi"% $#$"ts as th$y "38ally ccu3s

Ma"ipulati" a"2/3 c"t3l a"2/3 si8ulati"

Th$ $9t$"t 1 3$s$a3ch i"t$31$3$"c$ i" 8y stu2y will 6$ 8i"i8al. I#$ t >ust cll$ct a"2 a"aly$th$ 2ata 13 1i"2i"%s. Th$3$ will 6$ " "$$2 13 si8ulati" t$sts $tc.

Stu2y s$tti"%&

C"t3i#$2

N")c"t3i#$2

M$asu3$8$"ts a"2 8$asu3$s&

!p$3ati"al 2$1i"iti"

It$8s 08$asu3$s7

Scali"%

Cat$%3iati"

C2i"%

U"its 1 a"alysis 0ppulati" t 6$ stu2i$27 I"2i#i2uals

Dya2s

*3ups

!3%a"iati"


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Machi"$s $tc.

Th$ u"its 1 a"alysis 3 th$ ppulati" that will 6$ stu2i$2 i" 8y 3$s$a3ch will 6$ th$ 6ala"c$sh$$t, =5L accu"t, cash 1lw stat$8$"ts, $tc.

Sa8pli"% 2$si%"& It is a 2$1i"it$ pla" 13 6tai"i"% a sa8pl$ 138 sa8pli"% 13a8$. It is2$t$38i"$2 6$13$ cll$cti" 1 2ata.Sa8pli"% si$ 13 8y stu2y will 6$ th$ 2ata 1 last 1u3 y$a3s i.$ 138


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Hypth$sisT$sti"%ith th$ h$lp " ANN!GA w$ will us$ th$ 1llwi"% hypth$sis

Null Hypth$sis& th$3$s " si%"i1ica"t i8pact 1 s$cu3$2 2$6t " p31ita6ility 1 th$

c8pa"y.Alt$3"at$ Hypth$sis& th$3$s si%"i1ica"t i8pact 1 s$cu3$2 2$6t " p31ita6ility 1 th$c8pa"y.

Null Hypth$sis& th$3$s " si%"i1ica"t i8pact 1 u"s$cu3$2 2$6t " p31ita6ility 1 th$

c8pa"y.Alt$3"at$ Hypth$sis& th$3$s si%"i1ica"t i8pact 1 u"s$cu3$2 2$6t " p31ita6ility 1 th$c8pa"y.

Null Hypth$sis& th$3$s " si%"i1ica"t i8pact 1 s$cu3$2 2$6t " li?ui2ity 1 th$

c8pa"y.Alt$3"at$ Hypth$sis& th$3$s si%"i1ica"t i8pact 1 s$cu3$2 2$6t " li?ui2ity 1 th$c8pa"y.

Null Hypth$sis& th$3$s " si%"i1ica"t i8pact 1 u"s$cu3$2 2$6t " li?ui2ity 1 th$c8pa"y.Alt$3"at$ Hypth$sis& th$3$s si%"i1ica"t i8pact 1 u"s$cu3$2 2$6t " li?ui2ity 1 th$c8pa"y.


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A"alytical a"2Statistical Tls


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C%rre!ati%n

-7 B$tw$$" s$cu3$2 2$6t a"2 li?ui2ity

Hi%h 2$%3$$ 1 c33$lati" $9ists 6$tw$$" s$cu3$2 2$6t a"2 li?ui2ity 1 th$ c8pa"y i.$. .


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7 B$tw$$" s$cu3$2 2$6t a"2 p31ita6ility 1 th$ c8pa"y.

Hi%h 2$%3$$ 1 c33$lati" $9ists 6$tw$$" s$cu3$2 2$6t a"2 li?ui2ity 1 th$ c8pa"y i.$. .-.

(7 B$tw$$" u"s$cu3$2 2$6t a"2 p31ita6ility 1 th$ cpa"y

Lw 2$%3$$ 1 c33$lati" $9ists 6$tw$$" u"s$cu3$2 2$6t a"2 p31ita6ility 1 th$ c8pa"y i.$.;..


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ANOA

-7L$t "ull hypth$sis 6$ that th$3$ is " si%"i1ica"c$ $11$ct 1 s$cu3$2 2$6t " th$ p31ita6ility1 th$ c8pa"y.

As th$ l$#$l 1 si%"i1ica"c$ is %3$at$3 tha" '.':, w$ 3$>$ct u3 "ull hypth$sis a"2 acc$pt u3alt$3"at$ hypth$sis i.$. s$cu3$2 2$6t $11$cts th$ p31ita6ility 1 th$ c8pa"y.

$ct u3 "ull hypth$sis a"2 acc$pt u3alt$3"at$ hypth$sis i.$. u"s$cu3$2 2$6t $11$cts th$ p31ita6ility 1 th$ c8pa"y.


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7 L$t "ull hypth$sis 6$ that th$3$ is " si%"i1ica"c$ $11$ct 1 s$cu3$2 2$6t " th$ li?ui2ity 1 th$

c8pa"y.ANOA

M2$l Su8 1 S?ua3$s 21 M$a" S?ua3$ F Si%.

- R$%3$ssi" .:E- - .:E- (.:' .-;a

R$si2ual (.E- <


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MU>TIP>E RE?RESSION

-7 Multipl$ R$%3$ssi" 6$tw$$" s$cu3$2 2$6t, u"s$cu3$2 2$6t a"2 li?ui2ity 1 th$ c8pa"y.


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89/92


90/92

Re!ia1i!ity Ana!ysis

C3"6achs alpha is 8st c88"ly us$2 3$lia6ility c$11ici$"ts, which is 6as$2 " th$ a#$3a%$c33$lati" 1 it$8s withi" a t$st i1 th$ it$8s a3$ sta"2a32i$2. I1 th$ it$8s a3$ "t sta"2a32i$2, itis 6as$2 " th$ a#$3a%$ c#a3ia"c$ a8"% th$ it$8s. B$caus$ C3"6achs alpha ca" 6$i"t$3p3$t$2 as a c33$lati" c$11ici$"t, it 3a"%$s i" #alu$ 138 ' t -.

H$3$ th$ #alu$ 1 u3 C3"6achs alpha is (.: which is l$ss th$" : I 8$a"s that u3 2ata is3$lia6l$.


91/92

Li8itati"sE9c$pt th$ sup3$8$ pw$3, th$ Al8i%hty, " "$ is i8p$cca6l$ a"2 p3w$ss $"u%h t

acc8plish a"ythi"% withut a"y 1aults a"2 li8itati"s. A 3$s$a3ch is " $9c$pti". N stu2y is

2$#i2 1 c$3tai" sh3tc8i"%s. S8$ p36l$8s $"cu"t$3$2 i" this stu2y a3$ u"2$3 8$"ti"$2&

Ti$e C%nstraints:

Ti8$ was a 6it sh3t t 1ath8 i"t th$ 2$pth 1 th$ stu2y. But still all $113ts t th$ 6$st pssi6l$

$9t$"t ha#$ 6$$" 8a2$ t cll$ct th$ 2ata.

Data 4%!!e4ti%n C%nstraints:

Si"c$ 2ata us$2 is s$c"2a3y i" "atu3$, this ps$s th$ c"st3ai"ts " th$ #ali2ity a"2 3$lia6ility 1

th$ 2ata. Se4re4y %# Interna! Data

I" t2ays 2ay th$ c8pa"i$s a3$ #$3y s$"siti#$ 3$%a32i"% th$i3 i"t$3"al 2ata, this p3#$2 a

hi"23a"c$ t 8y stu2y.

Peri%' %# Ana!ysis

Sa8pl$ si$ 1 1u3 y$a3s was ta4$" 6y 8$ i.$. 138


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Fi"2i"%s

R$c88$"2ati"s

my final report2

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