Professional Documents
Culture Documents
Financial Statement Analysis Through Common Size at Nexteer Company
Financial Statement Analysis Through Common Size at Nexteer Company
Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital;
Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.
OBJECTIVES
To provide reliable financial information about economic resources and obligations of a business enterprise. To provide reliable information about the net resources of an enterprise that results from its activities. To provide financial information that assist in estimating the earning potentials of a business. To provide other needed information about changes in economic resources or obligations. To disclose, to the extent possible, other information related to the financial statements that is relevant to the needs of the users of these statements. To know the present and future earning capacity or profitability of the concern. The possibility of developments in the future by making forecast and preparing budgets. To have a comparative study in regard to one firm with another firm. To know the financial stability of the business concern.
GOALS
Financial analysts often assess the following elements of a firm: 1. Profitability - its ability to earn income and sustain growth in both the short- and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term
NEXTEER AUTOMOTIV
3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations; Both solvency and liquidity are based on the company's balance sheet, which indicates the financial condition of a business as of a given point in time. 4. Stability - the firm's ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators. ETC
METHODS
Financial analysts often compare financial ratios (of solvency, profitability, growth, etc.):
Past Performance - Across historical time periods for the same firm (the last 5 years for example),
Future Performance - Using historical figures and certain mathematical and statistical techniques, including present and future values, this extrapolation method is the main source of errors in financial analysis as past statistics can be poor predictors of future prospects.
These ratios are calculated by dividing a (group of) account balance(s), taken from the balance sheet and / or the income statement, by another, for example : Net income / equity = return on equity (ROE) Net income / total assets = return on assets (ROA) Stock price / earnings per share = P/E ratio Comparing financial ratios is merely one way of conducting financial analysis. Financial ratios face several theoretical challenges:
NEXTEER AUTOMOTIV
They say little about the firm's prospects in an absolute sense. Their insights about relative performance require a reference point from other time periods or similar firms.
One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can partially overcome this problem by combining several related ratios to paint a more comprehensive picture of the firm's performance.
Seasonal factors may prevent year-end values from being representative. A ratio's values may be distorted as account balances change from the beginning to the end of an accounting period. Use average values for such accounts whenever possible.
Financial ratios are no more objective than the accounting methods employed. Changes in accounting policies or choices can yield drastically different ratio values.
(fundamental analysis) Financial analysts can also use percentage analysis which involves reducing a series of
figures as a percentage of some base amount. For example, a group of items can be expressed as a percentage of net income. When proportionate changes in the same figure over a given time period expressed as a percentage is known as horizontal analysis. Vertical or common-size analysis reduces all items on a statement to a common size as a percentage of some base value which assists in comparability with other companies of different sizes. As a result, all Income Statement items are divided by Sales, and all Balance Sheet items are divided by Total Assets. Another method is comparative analysis. This provides a better way to determine trends. Comparative analysis presents the same information for two or more time periods and is presented side-by-side to allow for easy analysis.
NEXTEER AUTOMOTIV
2. Common size or measurement statement analysis: Are those in which figures reported are converted to same common base. Vertical analysis is required for an interpretation of underlying causes of changes over a period of time. It is used for balance sheet as well as income statements.
3. Trend analysis: This analysis is an important tool of horizontal financial analysis. It enables to know the changes in the financial functions and operating efficiency between the time period chosen. Trend percentages are calculated for each item of the financial statements taking the figures of the base year as 100.
4. Fund flow statement or analysis: FFS is prepared to indicate in summary form, changes occurring in items of financial position between two different balance sheet dates.
5. Cash flow statement or analysis: Cash flow means inflow and outflow of cash. An inflow that is source of cash increase, the total cash available at the disposal of the firm while an outflow that is use of cash decrease it.
6. Ratio analysis: It is one of the powerful tools of the financial sanalysis; a ratio can be defined as, the indicated quotient of two mathematical expressions and as the relationship between two or more things. A ratio can be used as yard stick for evaluating the financial position and performance of a concern.
7. Working capital analysis: This statement is prepared to know the net changes in working capital of the between two specified dates. It is prepared from current assets and current liabilities to show the net increase or decrease in working capital.
8. DuPont analysis: This analysis shows the performance of the company in the form of chart. The return on investment which are comprises of earning before and after tax and the capital employed is clearly depicted in the chart.
ii.
Accuracy: Financial statements should be prepared accurately so that these may convey a full and correct idea about the progress, position and prospects of an enterprise.
iii.
Comparability: It is the foundation of financial analysis as it increases the utility of financial statements.
iv.
Analytical presentation: Financial statements should be presented in analytical and classical form so that a better and meaning analysis can be made.
v.
Promptness: Financial statements should be prepared after the end of the accounting period without any delay may present difficulty in tracing the cause of the results as disclosed by these statements.
vi.
Generally accepted principal: Financial statements must be prepared in accordance with the generally accepted accounting principles to have wider acceptability and understandability by the clients.
vii.
Consistency: Financial statements must be prepared on consistent basis following the same rules, procedures and principles in successive periods, unless the situation demands otherwise. It also affects the comparability of these statements.
viii.
Authenticity: Financial statements prepared must be authenticated by an independent and capable person (called auditor) in order to make them more reliable and acceptable by the users.
ix.
Compliance with law: Financial statements must meet the requirements of law, if any, in matter of form, contents and disclosures, procedures and methods.
NEXTEER AUTOMOTIV
NEXTEER AUTOMOTIV
India has emerged as one of the world's largest manufacturers of small carsAccording to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan. Toyota, Volkswagen and Suzuki In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. According to Bloomberg L P, in 2009 India surpassed China as Asia's fourth largest exporter of cars. In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from shipments to its parent Suzuki, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is in preparation to launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric version of its low-cost car Nano in Europe and the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for the Nissan-Renault alliance, which will market the product worldwide. Nissan Renault may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project. While the possibilities are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens. In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.
NEXTEER AUTOMOTIV
COMPANY PROFILE:
Opens New Channels for Growth in China Largest Chinese Investment in a U.S. Based Automotive Supplier SAGINAW, Mich. PCM, an entity formed by PCAS and Beijing E-Town International Investment & Development Co., Ltd. (E-Town) an affiliate of the Beijing Municipal Government, today announced the completion of its acquisition of Nexteer Automotive, a global leading supplier in advanced steering and driveline systems, from General Motors. The transaction marks the single largest Chinese investment in the global automotive supplier industry. The transaction is effective on Tuesday, November 30. Saginaw will remain the worldwide headquarters for Nexteer and the key center for engineering, research and development. The current management team will remain in place under the leadership of Robert J. Remenar, CEO. According to Moelis & Company, the investment banker of PCM, the Nexteer business includes global steering and half shaft operations in 22 manufacturing facilities, six engineering facilities and 14 customer support centers in North and South America, Europe and Asia. Under the terms of the agreement, PCM will support the recently approved 5-year labor agreement with the UAW. We are committed to building on the hard work and success of the management team and everyone at Nexteer, said Mr. Zhao Guangyi, Chairman of the Board of E-Town and PCM. As the new ownership, PCM is proud to provide access to continued capital investment that will allow Nexteer to continue its global growth in technology and manufacturing, particularly in the China market.
With a well-capitalized owner committed to growing the business, we can focus all of our resources on our industry-leading engineering and product development, said Robert J. Remenar. This sale was an important move for us to strengthen a diverse, global customer base and build on our current growth trajectory. While we will continue to build in high growth regions around the world, our owner's relationships will open new channels to the dynamic and rapidly growing Chinese automotive market, particularly among Asia-Pacific OEMs and manufacturers globally.
NEXTEER AUTOMOTIV
Nexteer Automotive customers include GM, Fiat, Ford, Toyota, Chrysler, and PSA Peugeot Citroen, as well as automakers in India, China and South America. The Chinese automotive industry is expected to grow at an annual rate of 10 percent, creating tremendous opportunity for parts manufacturers. While the global market for steering is currently largely hydraulic, the industry is fast moving to EPS systems. Nexteer anticipates that EPS will be standard on more than half of the worlds vehicles by 2020. Nexteers product lineup is devoted to the development and commercialization of electric power steering, hydraulic power steering, driveline and columns. In the last 11 years, Nexteer has put 14 million EPS systems on the road globally, saving nearly 800 million gallons of fuel. This transaction represents the culmination of 10 months of analysis and negotiations by PCM with Nexteer, General Motors and the United Auto Workers of America. PCM previously announced the signing of this transaction on July 7, 2010.
ABOUT PCM
PCM is a joint entity formed by Beijing E-Town International Investment & Development Co., Ltd. (E-Town) as the major investor with limited investment from PCAS. E-Town is a state-owned enterprise under Beijing Economic- Technological Development Area (BDA). Serving as the financing and investing arm of the Beijing Municipal Government, E-Town plays an active role in funding investments of strategic importance with high levels of technology. E-Town has been granted over US$15 billion in the form of credit facilities provided by various banks and financial institutions in China for the purpose of financing acquisitions.
NEXTEER AUTOMOTIV
No. of Production Units : Director & CEO Annual Turnover Employees Brand Products Address : : : : : :
World leader in vehicle electronic and transportation components, integrated vehicle sub-systems and modules. 63rd in the 2005 Fortune 500 company list Global manufacturing footprint. Able to follow the customer anywhere in the world. Leader in technology and electronics integration Customer differentiating products. Electronic Systems Integration.
NEXTEER AUTOMOTIV
Steering Division announces Nexteer Automotive brand in the Automotive Industry.
REVENUE: US $ 2.1 billion (Year 2008) CUSTOMER FOCUS : Respected and trusted for delivering on promises. INNOVATIVE AGILE PROACTIVE EXPERIENCED : Expert at meeting challenges on design, cost and Quality. : Able to respond quickly with, low-cost Solutions. : Dedicated to solving problems and creating Customer enthusiasm. : Known for providing demonstrated high performance In vehicle-matched systems. GLOBAL : Committed to exceeding customer and Vehicle needs Every time, everywhere.
GROWTH MISSIONS:
Saginaw Manufacturing: Pillar of Strength and Stability
We are committed to achieving customer delight by providing innovative products of superior quality at competitive prices through the following initiatives.
Establishing, maintaining and continually improving the effective of our quality management system
Working with our suppliers as partners to continually enhance their capabilities in quality, cost and delivery in order to achieve our objectives.
Developing, motivating and involving employees to create quality culture in the organization.
NEXTEER AUTOMOTIV
PRODUCT PROFILE:
1.HALF SHAFTS:
Half shaft is an assembly of one or two constant velocity universal joints connected to a solid or tubular shaft member. Half shaft(Drive shaft)transmit engine torque to independently suspended wheels. Half shaft are required in front wheel drive cars, four wheel drive vehicles, as well as some rear wheel drive cars with independent rear suspension. These vehicle configurations require that a drive shaft transmits torque to the wheels, move with the suspension and also allows for steering of the front wheels. A Half shaft is a component that satisfies these requirements.
NEXTEER AUTOMOTIV
2. STEERING COLUMN:
Column assembly will be transmitting steering function to wheel from steering. Steering columns are the primary driver-to-vehicle interface. They fill the pivotal role of mechanically connecting the steering wheel and the steering gear. More importantly though, a steering column provides feedback from the road to the driver and influences the vehicles safety, handling, control, comfort, convenience and even styling. As the market moves toward modules and systems with an increased use of electronics, Nexteer Automotive is leading the way.
NEXTEER AUTOMOTIV
Nexteer Automotives pumps are designed for most car and light-duty truck applications. We can supply the complete steering pump module, including brackets, reservoirs and pulleys. Nexteer Automotive pumps can be driven by the accessory belt or directly by the engine. A patented high flow capability allows hydraulic power once considered loss to be directed at other hydraulic systems such as hydraulic engine cooling or anti-roll systems.
Nexteer Automotive designs and manufactures intermediate drive shafts (IDS) to work in conjunction with the half shaft to improve vehicle handling, and eliminate driveline disturbance issues on front-wheel-drive vehicles with offset transmissions and higher torque and running angles. Use of the IDS on the long side allows the half shafts to be equal length. The resulting equal joint angles between right-hand and left-hand half shafts reduce torque steering vehicles with this architecture, thus improving the overall comfort of the customer.
NEXTEER AUTOMOTIV
STEERING PRODUCTS:
STEERING SYSTEMS:
Active steering Hydraulic Power steering Torque overlay solutions Electric Power Steering (EPS) Column Assist (EPS) EPS Intermediate Shafts Pinion Assist (PEPS) Rack Assist (REPS) Premium EPS Rack & Pinion Gears
DRIVELINE PRODUCTS:
Front-Wheel-Drive Half shaft Rear-Wheel-Drive Half shaft Intermediate Drive Shafts Propeller Shaft Joints
Advanced Technology
STEERING COMPONENTS:
Electronics, Modules, Sub Assemblies
NEXTEER AUTOMOTIV
H. INFRASTRUCTURAL FACILITIES:
Infrastructure is the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. The nexteer automotive company having several infrastructural facilities those are; Transport facilities. Hospital facilities. Canteen facilities. Parking facilities. Road facilities. Good building and machinery facilities. R &D facilities. Other amenities facilities.
NEXTEER AUTOMOTIV
I.ACHIEVEMENTS/ AWARDS:
The first award, "2003 Silver-Supplier of the Year", was presented to Plant 81 for achieving performance excellence and meeting all of Toyota Kirloskar Motor Pvt. Ltd. (TKML) targets in quality, cost and delivery on supply of half shafts for the Corolla. ISO 14001:2004 Environmental management system registration has been done. QCFI - CCQC -2007 AND CCQC-2009 Awards are received. Excellent award in performance in chapter convention.
World famous HR practice winner Global communication process 2008 Bangalore. Distinguished achievement trust walk reward the rock stars 2009 Bangalore. Stealing shamelessly world famous thought of the day 2010 Bangalore. Additionally, the Bangalore plant was awarded the "Zero PPM Supplier of the Year" award for 2003 as well as certificates for meeting each of their metrics on quality, delivery and cost. "Toyota is well known in the automotive industry for its focus on quality," said Robert J. Remenar, president of Delphi Steering. "Having earned Toyota's recognition for quality is an achievement that the Bangalore enterprise and the entire division can be proud of." While accepting the awards, Khanna remarked, "Being honored by Toyota with this prestigious award recognizes our commitment to competitively deliver quality products to our customers. It is a matter of great pride to be associated with Toyota in India at the beginning of their journey to Excellence." "We appreciate and thank all members of the Bangalore team for their efforts in keeping Zero PPM throughout the year," said Toyota Kirloskar Motor's managing director, A. Toyoshima, in a congratulatory letter to Delphi Bangalore. "We are sure quality assurance will go a long way in building a competitive and strong business."
NEXTEER AUTOMOTIV
NEXTEER AUTOMOTIV
The famous U.S. consultant McKinneys and the company developed a holistic approach towards the end of 1970 for diagnosing the cause of the organizational problems and formulated the project for the improvement of the physical and fiscal health of the company. The 7s model is a tool for managerial analysis and action that provides a structure with which the whole of the organization can be considered so that organizational problem can be diagnosed and a strategy may be developed and implemented. The 7s model is a framework for analyzing the organization and their effectiveness as a whole. The 7s diagram illustrate the multiplicity, interconnectedness of the elements that design an organization ability to change. The theory helps to change the managerial thinking about the companies can be improved.
NEXTEER AUTOMOTIV
The 7s framework first appeared in the art of Japanese management by Richard Pascal and anthos in 1981. They had been looking at how Japanese industry had been so successful, at round the same time that tom peters and Robert waterman were exploring what made a company excellent. the 7s model was born at a meeting of the four authors in 1978.It went on to appear in in search of excellence by peters and walterman, and was taken up as a basic tool by the global management consultancy McKinneys its sometimes known as the McKinneys 7s model.
STRUCTURE:
Organizational structure refers to the basic hierarchical procedure in which the organization carries out their business and accompanying baggage that shows whose tasks are divided and integrated. Pascal and athos in their book the art of Japanese management says that organization structure emphasizes that the quality of management depends on the goodness of which amongst all those key managerial dimensions.
ORGANIZATION STRUCTURE:
Nexteer India has ILT Team (India leadership Team) which is led by Mr.MadhavKulkarni, Director & COO Indian Operations and Team consists of all functional Heads. This Team sets Business Objectives & drive entire team to achieve business objectives.
FINANCE
PURCHASE PRODUCTION
SUPPLYCHAIN MANAGEMENT
FACILITY
QUALITY
TESTING
PLATFORM ENGINEERING
Organizational structure refers to the basic hierarchical procedure in which the organization carries out their business and accompanying baggage that shows whose tasks are divided and integrated. Pascal and athos in their book the art of Japanese management says that organization structure emphasizes that the quality of management depends on the goodness of which amongst all those key managerial dimensions.
NEXTEER AUTOMOTIV
STRATEGY:
Strategies are the actions a company plans in response to or anticipation of changes in its external environment. It also includes purposes, mission, objectives, goals and major action plans & policies.
Technical skill:A technical skill refers to the ability and knowledge in using the equipment, technique and procedures involved in performing specific tasks. At Nexteer Automotive Bangalore employees, both supervisor and workers, working in all the production related department posses the technical skill such as engineering skills, computer skills, etc. which are needed to handle work, related tools, machines and equipments.
Human skills:
Human skills consists of the ability to work effectively with other people both as individual and as a member of a group, at Nexteer Automotive Bangalore employees and staff are expected to have human skills so that they can work cooperatively with one other and build effective teams. Spirit, which in turn helps in achieving the organizational goals.
STAFF:
Staffing is the process of acquiring human resources for the organization and assuring that they have the potential to contribute to the achievement of the organizational goals. In the McKinneys 7s framework, the term staff has a specific connotation. The term staff refers to the way organization introduce young recruits into the mainstream of their activities and the manner in which they manage their careers as the new entrants develop into future managers.
NEXTEER AUTOMOTIV The employees demographic are as follows: Major duties and responsibilities of technical staff are as follows:
To maintain safe working condition. Following statutory norms like factories act. Operation and maintenance of equipment. Man Power allotment. Shop floor discipline. Trouble shooting and Problem solving. Decision Making.
To Update and maintain the records. Prepare MIS To maintain proper accounts of organization. Handling day to day activities. Execution of polices
STYLE:
The style if an organization, according to McKinneys framework refers to the reporting relationship between the superiors and the subordinates. It conveys the flow of communication between them. Referring to the organization structure of Nexteer Automotive, it can be said that the company is following the type of Team Work organization. Reporting relationship at Nexteer Automotive follows a formal channel. The communication flows the routes formally laid down in the Organization structure and deliberately associates with the status or the position of the sender and receiver. Both upward and downward communication follows the path of formal channel.
SHARED VALUES:
Shared value called super ordinate goals when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and general work ethic. The value goes beyond, but might well include simple goal statement in determining corporate destiny. To fit the concept, these values must be shared by people in organization. Nexteer Automotive is a company that insist the following some core values, most of these can be found in the companys vision statement as well as quality policy.
SWOT ANALSIS:
The SWOT analysis is a business tool available in the tool box of any business owner. However, running a business forces you to focus on the issues and fires burning today, not tomorrow. A SWOT analysis may sound like a form of mission planning for James Bond. A SWOT simply stands for: Strengths, Weaknesses, Opportunities, and Threats. Each area forms a box on a grid and you fill in each section to help formulate a marketing strategy.
NEXTEER AUTOMOTIV
The primary strategies of the company changed with respect to the SWOT analysis in order to fulfill the corporate vision. Tatas vision Improving the quality of life is also influenced by the strategies developed to due Over come the weakness and grabs the opportunities. However, the present author tried to explain that the group recent strategies are founded on the analysis, afterward the group tried to go abroad to explore the new markets. The main strengths of the Tata Group are resources and capabilities (People and Raw Material), vast experience and the business model. The opportunities are the new markets, Exports and acquisitions. The group requires overcoming the weakness; such as distribution, value chain innovation and macro environment, in order to serve the global markets with high quality and low price. Within the home country the threats are developing due to the Indias recent mergers of global markets and in global markets threats are already exist. However, as per the theory, to do so and compete in the market place the group required a strong strategic intent and there is a need to configure the operations, resources and capabilities to attain the essential goals.
STRENGTHS
2nd leading automotive supplier globally in revenue Globally manufacturing units High-performance culture values & competencies Leading automotive company in manufacturing of in vehicle electronic and transportation components, integrated vehicle sub-systems and modules Market leader in steering technology Expert at meeting challenges on design, cost and quality. Leader in management practices. Continues improvement of environment through designing the products & services ISO 9000 &140001 company Company as globally scheduling & logistics
Company as global network & as leading automobile industries as their all time customer Sophisticated manufacturing facilities
NEXTEER AUTOMOTIV WEAKNESS Lack of promotion of company products Sub-scale Lack management
OPPORTUNITIES
It has potential to increase its existing market share by carrying out detailed market research for prospective customers. Company has a long time experience, so it can very well know the consumer behaviour and can serve fluently than others. Addition of new features to existing products. R&D trying to built new products with high technology. New market can be created and captured through innovative products.
THREATS
New and stronger competitors entering the Market. Growing bargaining power of customers or supplier.
NEXTEER AUTOMOTIV
3. RESEARCH DESING:
TITLE OF THE STUDY:
Financial Statement Analysis through common size at Nexteer Automotives Bangalore
NEXTEER AUTOMOTIV
DATA COLLECTION:
I. PRIMARY DATA
Discussions with the organization guide. Observations in both office and work floor of the organizations
II.
SECONDARY DATA
Companys manuals Help files provided in the software Internet Journals and Magazines
NEXTEER AUTOMOTIV
Common size statement for the year 20011-2012 Particulars Dec.31, 2012 Percentage change (%)
Dec.31, 2011
ASSETS
Non-current assets 12,773 4,704 2,573 7,277 489 296 261 557 1,444 22,540 35.48 13.10 7.16 20.27 1.36 0.82 0.72 1.55 4.02 62.81 10,213 4,258 2,337 6,595 447 410 144 554 1,023 18,832 32.89 13.71 7.52 21.23 1.43 1.32 0.46 1.78 3.29 60.64
Goodwill, net Intangible assets, net Property, plant and equipment, net Total tangible and intangible assets Investment in associates Available-for-sale financial assets Other non-current financial assets Non-current financial assets Deferred tax assets Total non-current assets Current Assets Inventories and work in progress Trade accounts receivable Other receivables and prepaid expenses Current financial assets Current and cash equivalents Total current assets
Total assets
35,886
100
31,051
100
NEXTEER AUTOMOTIV
Common size statement for the year 20011-2012 Particulars Dec.31, 2012
(In millions of Euros)
Dec.31, 2011
LIABILITIES
Equity Share capital Additional paid-in-capital Retained earnings Translation reserve Equity attributable to owners of the parent Non-controlling interests Total equity Total long-term provisions Pensions and other post-employment benefit obligations Other long-term provisions Total long-term provisions Non-current financial liabilities Bonds Other long-term debt Non-current financial liabilities Deferred tax liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade account payable Accrued taxes and payroll costs Short-term provisions Other current liabilities Short-term debt Total current liabilities 2,196 6,690 6,864 148 15,898 192 16,090 6.11 18.64 19.12 0.41 44.30 0.53 44.83 2,176 6,495 6,133 (19) 14,785 204 14,989 7.00 20.91 19.75 0.06 47.61 0.65 48.27
35,886
100
31,051
100
NEXTEER AUTOMOTIV
Common size statement for the year 2011-2010 Particulars Dec.31, 2011 Percentage change (%)
(In millions of Euros)
Dec.31, 2010
ASSETS
Non-current assets Goodwill, net Intangible assets, net Property, plant and equipment, net Total tangible and intangible assets Investment in associates Available-for-sale financial assets Other non-current financial assets Non-current financial assets Deferred tax assets Total non-current assets Current Assets Inventories and work in progress Trade accounts receivable Other receivables and prepaid expenses Current financial assets Current and cash equivalents Total current assets 10,213 4,258 2,337 6,595 447 410 144 554 1,023 18,832 32.89 13.71 7.52 21.23 1.43 1.32 0.46 1.78 3.29 60.64 8,611 3,919 1,965 5,884 75 245 102 347 1,010 15,927 33.59 15.28 7.65 22.95 0.29 0.95 0.39 1.35 3.94 62.13
Total assets
31,051
100
25,632
100
NEXTEER AUTOMOTIV
Common size statement for the year 2011-2010 Particulars LIABILITIES Equity Share capital Additional paid-in-capital Retained earnings Translation reserve Equity attributable to owners of the parent Non-controlling interests Total equity Total long-term provisions Pensions and other post-employment benefit obligations Other long-term provisions Total long-term provisions Non-current financial liabilities Bonds Other long-term debt Non-current financial liabilities Deferred tax liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade account payable Accrued taxes and payroll costs Short-term provisions Other current liabilities Short-term debt Total current liabilities Dec.31, 2011 Percentage change (%)
(In millions of Euros)
Dec.31, 2010
31,051
100
25,632
100
NEXTEER AUTOMOTIV
Common size statement for the year 2010-2009 Particulars ASSETS Non-current assets Goodwill, net Intangible assets, net Property, plant and equipment, net Total tangible and intangible assets Investment in associates Available-for-sale financial assets Other non-current financial assets Non-current financial assets Deferred tax assets Total non-current assets Current Assets Inventories and work in progress Trade accounts receivable Other receivables and prepaid expenses Asset held for cash Current financial assets Current and cash equivalents Total current assets 245 102 347 1,001 15,918 0.95 0.39 1.35 3.90 62.06 200 113 313 932 16,029 0.80 0.45 1.26 3.75 64.61 8,611 3,919 1,965 5,884 75 33.57 15.27 7.66 22.94 0.29 8,542 3,991 1,970 5,961 281 34.43 16.08 7.94 24.02 1.13 Dec.31, 2010 Percentage change (%)
(In millions of Euros)
Dec.31, 2009
Total assets
25,649
100
24,807
100
NEXTEER AUTOMOTIV
Common size statement for the year 2010-2009 Particulars Dec.31, 2010 Percentage change (%)
(In millions of Euros)
Dec.31, 2009
LIABILITIES Equity Share capital Share premium account Retained earnings Translation reserve Equity attributable to owners of the parent Non-controlling interests Total equity Total long-term provisions Pensions and other post-employment benefit obligations Other long-term provisions Total long-term provisions Non-current financial liabilities Bonds Other long-term debt Non-current financial liabilities Deferred tax liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade account payable Accrued taxes and payroll costs Short-term provisions Other current liabilities Short-term debt Total current liabilities Total equity and liabilities
NEXTEER AUTOMOTIV 1. Chart showing total tangible and intangible assets for 2011-12
2011(value) 6,595
2012(value) 7,277
21.23%
20.27%
2011 2012
ANALYSIS:
The above chart shows the total tangible and intangible assets of the Nexteer Automotives has decreased from the year 2011-2012 because of reduction of 0.61% in the values of Intangible assets and 0.36% in property, plant and equipment.
INTERPRETATION:
The chart interprets that though the good will of the company increased the other assets decreased so the company needs to increase the value of its tangible and intangible assets in order to meet the liabilities.
2011(value) 18,832
2012(value) 22,540
62.81% 63.00% 62.50% 62.00% 61.50% 61.00% 60.50% 60.00% 59.50% 2011 2012 Total Non-Current assets 60.64%
ANALYSIS:
The above chart indicates that the total non-current assets have increased to 2.17% from the year 2011-2012 because of decrease in investments in associates at 0.07%, non-current financial assets at 0.23% and financial assets available for sale at 0.5, increase in deferred tax assets at 0.73%.
INTERPRETATION:
The above chart interprets the company is having good non-current assets positions and has increased its total non-current assets to 2.17% this may lead to reduction in their liabilities further.
2011(value) Percentage 2012(value) Percentage change change 12,219 39.35% 13,346 37.18%
39.35%
37.18%
2012
ANALYSIS:
The above graphs shows that the total current assets have reduced by 2.17% for the year 2011-2012 due to reduction in inventories and work-in-progress and cash and cash equivalents though there is an increase in trade account receivables at 0.77% and other receivables and prepaid expenses at 0.66%.
INTERPRETATION:
The Companys current assets reduced by 2.17% due to variations in inventories and work-in-progress and cash and cash equivalents so the company need to improve its asset structure in order to meet the working capital requirement.
2011(value) Percentage 2012(value) Percentage change change 14,989 48.27% 16,090 44.83%
Total equity
2012 48%
2011 52%
ANALYSIS:
The Companys equity structure has reduced by 3.44% from the year 2011 -2012 because of decrease in share capital at 0.89%, additional paid-in capital at 2.27%, retained earnings at 0.63 and increase in translation reserves 0.35%.
INTERPRETATION:
The companys equity structure has come down, if the company needs to be in a good position then it should maintain good equity position and avoid the variations in share capital, additional paid-in capital, retained earnings, translation reserves etc.
NEXTEER AUTOMOTIV 4. Chart showing total non-current liabilities for 2011-2012 Particulars Total noncurrent liabilities 2011(value) 8,187 Percentage change 26.36% 2012(value) 10,509 Percentage change 29.28%
ANALYSIS:
The Companys noncurrent liabilities have gone up to 2.92% from the year 2011-2012 due to the changes in bonds 3.05%, other long term debt 0.11%, deferred tax liabilities 0.11% and other non-current liabilities 0.24%.
INTERPRETATION:
The Companys fixed liabilities have gone up because of increase in the value of bonds and other non-current liabilities, the company think of reducing the non-current liabilities.
2011(value) 7,875
2012(value) 9,287
ANALYSIS:
The Companys current liabilities have increased to 0.51% from the year 2011-2012 due to the increase of trade account payable at 0.35%, accrued taxes and payroll costs at 0.8%.
INTERPRETATION:
The Company must reduce its current liabilities that are trade account payables and payroll costs in order to maintain level of liabilities as per the assets.
NEXTEER AUTOMOTIV 7. Chart showing total tangible and intangible assets for 2010-2011
2010(value) Percentage 2011(value) Percentage change change Total tangible and 5,884 22.95% 6,595 21.23% intangible assets
Particulars
22.95%
21.23%
2010
ANALYSIS:
The Companys total tangible intangible assets have reduced by 1.72% from the year 2010-2011 because of decrease in goodwill at 0.7%, intangible assets at 1.57% and property, plant and equipment at 1.72%.
INTERPRETATION:
The chart interprets that the companys total tangible intangible assets have been reduced and there is a need to increase the value of its total tangible and intangible assets in order to meet the liabilities.
2010(value) Percentage 2011(value) Percentage change change 15,927 62.13 18,832 60.64%
62.8 62.6 62.4 62.2 62 61.8 Total Non-Current assets 2010 2011 62.13 60.64%
ANALYSIS:
The above chart indicates that the total non-current assets have decreased by 1.49% from the year 2010-2011 due to decrease in deferred tax assets at 0.65% though there is an increase in investment in associates 1.14%, available for sale financial assets at 0.37%.
INTERPRETATION:
The chart interprets that the non-current assets have decreased but the company needs to increase the value of its total non-current assets in order to maintain a good asset structure.
2010(value) Percentage 2011(value) Percentage change change 9,705 37.86% 12,219 39.35%
39.35%
ANALYSIS:
The above graphs shows that the total current assets have increased by 1.49% for the year 2010-2011 because of increase in inventories and work in progress at 1.62%, trade account receivables at 2.32% and other receivables and prepaid expenses at 0.51% though there is a decrease in current financial assets and cash and cash equivalents at 0.18% and 2.79%.
INTERPRETATION:
The Companys current assets increased by 1.49% due to trade account receivables and work in progress and other receivables and prepaid expenses so it can be said that company can has a good financial position.
2010(value) 11,860
2011(value) 14,989
Total equity
48.50% 48.00% 47.50% 47.00% 46.50% 2010, 46.27% 46.00% 45.50% 45.00% 2010 2011 2011, 48.27%
ANALYSIS:
The Companys equity structure has increased by 2% from the year 2010-2011 because of increase in retained earnings at 1.63% and non-controlling interest at 0.14%.
INTERPRETATION:
The Company has maintained its equity structure in 2011 which has increased to 2% from 2010 due to increase in retained earnings which leads the company in securing a favourable financial position.
NEXTEER AUTOMOTIV 11. Chart showing total non-current liabilities for 2010-2011
2010(value) 7,610
2011(value) 8,187
ANALYSIS:
The Companys non-current liabilities have reduced by 3.32% from the year 2010-2011 due to decrease in pensions and other post-employment benefits obligations at 0.53%, noncurrent financial liabilities at 3.03% and deferred tax liabilities at 0.53% and others.
INTERPRETATION:
The Companys non-current liabilities has been coming down due to reduction in pensions and other post-employment benefits obligations, non-current financial liabilities and deferred tax liabilities so the company can have a healthy financial position.
NEXTEER AUTOMOTIV 12. Chart showing total current liabilities for 2010-2011
2010(value) 6,162
2011(value) 7,875
24.00%
23.50%
ANALYSIS:
The Companys current liabilities have increased by 1.32% from the year 2010-2011 in accordance with the increase in trade account receivables at 2.46%, accrued taxes and payroll costs at 0.73% and other current liabilities at 0.24%.
INTERPRETATION:
The Companys current liabilities gone up due to rise in trade account receivables, %, accrued taxes and payroll costs and other even there is an decrease in short term provisions and short term debts so they must reduce its current liabilities to maintain the assets and liabilities equal.
NEXTEER AUTOMOTIV 13. Chart showing total tangible and intangible assets for 2009-2010
2009(value) 5,961
2010(value) 5,884
24.50% 24.00% 23.50% 23.00% 22.50% 22.00% 2009 2010 22.94% Total tangible and intangible assets 24.02%
ANALYSIS:
The above chart shows the total tangible and intangible assets of the Nexteer Automotives has decreased to 1.08% from the year 2009-2010 due to decrease in goodwill at 0.86%, intangible assets at 0.86% and property, plant and equipment at 1.08%.
INTERPRETATION:
The Companys total tangible and intangible assets have been decreased but it can maintain the good position in the market if it increases the tangible and intangible assets value.
NEXTEER AUTOMOTIV 14. Chart showing total non-current assets for 2009-2010
2009(value) 16,029
2010(value) 15,918
62.06% 2010
2009
64.61%
60.00%
61.00%
62.00%
63.00%
64.00%
65.00%
ANALYSIS:
The above chart indicates that the total non-current assets have decreased by2.55% from the year 2009-2010 due to decrease in investments in associates at 0.16% and other financial assets at 0.06% though there is an increase in deferred tax assets.
INTERPRETATION:
The Companys total non-current assets decreased to 2.55% due to decrease in investments in associates and other financial assets therefore the company needs to improve its financial stability.
NEXTEER AUTOMOTIV 15. Chart showing total current assets for 2009-2010
2009(value) 8,778
2010(value) 9,731
2010
37.93%
2009
35.38%
0%
20%
40%
60%
80%
100%
ANALYSIS:
The above graphs shows that the total current assets have increased by 2.13% for the year 2009-2010 due to the increase in Cash and cash equivalents at 7.04% though there is a reduction in other current assets.
INTERPRETATION:
The Companys current assets increased to 2.13% due to the increase in Cash and cash equivalents and thus the company enjoys a steady financial position.
2009(value) Percentage 2010(value) Percentage change change 11,051 44.54% 11,888 46.34%
Total equity
2010 51%
2009 49%
ANALYSIS:
The Companys equity structure has increased by 1.8% from the year 2009 -2010 due to increase in share capital at 0.22%, share premium account at 1.46% and retained earnings at 0.06% though there is a decrease in translational reserves.
INTERPRETATION:
The Company has maintained its equity structure in 2010 which has increased to 1.8% from 2009 due to increase in share capital, share premium account and retained earnings.
NEXTEER AUTOMOTIV 17. Chart showing total non-current liabilities for 2009-2010
2009(value) 7,312
2010(value) 7,599
29.68%
2010
ANALYSIS:
The Companys noncurrent liabilities have gone up by 0.21% from the year 2009 -2010 due to increase in ordinary and convertible bonds at 0.49%, and other non-current financial liabilities at 0.45%.
INTERPRETATION:
The Companys non-current liabilities have been gone up due to increase in ordinary and convertible bonds and other non-current financial liabilities.
NEXTEER AUTOMOTIV 18. Chart showing total current liabilities for 2009-2010
2009(value)
2010(value)
26.00% 25.50% 25.00% 24.50% 24.00% 23.50% 23.00% 2009 2010 Total current liabilities 24.02% 25.97%
ANALYSIS:
The Companys current liabilities have been reduced by 1.95% from the year 2009 -2010 due to reduction in trade account receivables at 0.73%, accrued taxes and payroll costs at 0.39%, other current liabilities at 0.87% and short term debt at 0.81% though there is an increase in short-term provisions at 0.94%
INTERPRETATION:
The Companys current liabilities have come down due to reduction in trade account receivables, accrued taxes and payroll costs and other current liabilities etc so the company is said to be financially stable.
NEXTEER AUTOMOTIV
Based on the analysis the company is having an increase in its assets structure from year to year except in some case. Although the company is increasing its assets meanwhile the liabilities of the company is also increasing. During the analysis the company is lacking behind in gaining tangible and intangible assets from the year 2008-11. The company is having sufficient non-current assets or fixed assets but doesnt have enough current assets in order to meet the working capital. The Finance department is more cautions & always keeps in touch with the higher authority. The organization has sufficient amount of share capital and retained earnings for management. Over all financial performance is high. The total tangible and intangible assets of the company decreased during 2011-2012 from 21.23%-20.27%. The non-current assets has been increased in 2011-2012 from 60.64%-62.81%. The current assets for the year 2011-2012 have been decreased from 39.35%-37.18%. The total equity for the year 2011-2012 has reduction from 48.27%-44.83%. The total non-current liabilities or fixed liabilities have been increased in 2011-2012 from 26.36%-29.28%. The total current liabilities of the company increased in the year 2011-2012 from 25.36%-25.87%. The total tangible and intangible assets of the company decreased during 2010-2011 from 22.95%-21.23%. The non-current assets have been decreased in 2010-2011 from 62.13%-60.64%. The current assets for the year 2010-2011 have been increased from 37.86%-39.35%. The total equity for the year 2010-2011 has increased from 46.27%-48.27%. The total non-current liabilities or fixed liabilities have been decreased in 2010-2011 from 29.68%-26.36%.
NEXTEER AUTOMOTIV
The total current liabilities of the company increased in the year 2010-2011 from 24.04%-25.36%. The total tangible and intangible assets of the company decreased during 2009-2010 from 24.02%-22.94%. The non-current assets have been decreased in 2009-2010 from 64.61%-62.06%. The current assets for the year 2009-2010 have been increased from 35.38%-37.93%.
NEXTEER AUTOMOTIV
We suggest that the company needs to increase its goodwill and intangible assets in order to maintain the same level of equity in the market. Company is maintaining the same level of trade account receivables, accrued taxes and payroll costs and other current liabilities in every year. Company is trying to reduce it current liabilities and non-current liabilities year by year in order to maintain the balanced structure of assets and liabilities. Venders are related based on their performance with respect to the delivery, quality and price of the product. The entire department in the company is computerized. The management and administration is efficient and employees are also efficient in their work, so it is achieving great progress year by year. The overall financial data shows the company in sound. We suggest that the company can reduce the non-current liabilities like bonds, long term debts, deferred tax liabilities etc for the successful running of business. The company can reduce its current liabilities like trade account payable, accrued taxes and payroll costs and other liabilities in order to run the business smoothly. The company can make 2:1 ratio means; it Can follow double asset structure than liabilities.
NEXTEER AUTOMOTIV 6. SUGGESTIONS AND RECOMMENDATIONS OF THE STUDY: The company can conduct financial analysis or performance every 6months once so that it can come to know about the real picture of the financial statement. The company can implement good financial strategies for efficient utilization of funds. The company can motivate the labor force in each and every department to work loyal and increase the employee morale towards the company. The company is suggested to seek good reputation in the global market. Improve marketing of company product at the local market level. As the product produce Schneider Electric India 90% is experts and only 10% to local market. They should improve the local market needs and capture more market. The company can concentrate on innovative thinking to gain a good market share and should invest capital more on R&D.
There must be training programs have been organized to the employees in
order to increase turnover of the company. The company can make good reserve for retained earnings. The company can increase its equity in order to balance the liabilities. The company can increase its tangible and intangible assets like goodwill, patent and coy rights etc. The company can increase its current assets position in order to meet the daily expenditures. The company is suggested to reduce its debts in order to have a good working capital. The company can reduce the deferred tax liabilities to reduce the burden of liabilities.
NEXTEER AUTOMOTIV
BIBLOGRAPHY:
1. Company profile 2. Company manuals
NEXTEER AUTOMOTIV
Particulars
Dec.31, 2012
Dec.31, 2011
ASSETS
Non-current assets 12,773 4,704 2,573 7,277 489 296 261 557 1,444 22,540 10,213 4,258 2,337 6,595 447 410 144 554 1,023 18,832
Goodwill, net Intangible assets, net Property, plant and equipment, net Total tangible and intangible assets Investment in associates Available-for-sale financial assets Other non-current financial assets Non-current financial assets Deferred tax assets Total non-current assets Current Assets Inventories and work in progress Trade accounts receivable Other receivables and prepaid expenses Current financial assets Current and cash equivalents Total current assets
Total assets
35,886
31,051
The accompanying notes are an integral part of the consolidated financial statements.
NEXTEER AUTOMOTIV
LIABILITIES
Equity Share capital Additional paid-in-capital Retained earnings Translation reserve Equity attributable to owners of the parent Non-controlling interests Total equity Total long-term provisions Pensions and other post-employment benefit obligations Other long-term provisions Total long-term provisions Non-current financial liabilities Bonds Other long-term debt Non-current financial liabilities Deferred tax liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade account payable Accrued taxes and payroll costs Short-term provisions Other current liabilities Short-term debt Total current liabilities Total equity and liabilities 2,196 6,690 6,864 148 15,898 192 16,090 2,176 6,495 6,133 (19) 14,785 204 14,989
The accompanying notes are an integral part of the consolidated financial statements.
NEXTEER AUTOMOTIV
ASSETS
Non-current assets Goodwill, net Intangible assets, net Property, plant and equipment, net Total tangible and intangible assets Investment in associates Available-for-sale financial assets Other non-current financial assets Non-current financial assets Deferred tax assets Total non-current assets Current Assets Inventories and work in progress Trade accounts receivable Other receivables and prepaid expenses Current financial assets Current and cash equivalents Total current assets 10,213 4,258 2,337 6,595 447 410 144 554 1,023 18,832 8,611 3,919 1,965 5,884 75 245 102 347 1,010 15,927
Total assets
31,051
25,632
The accompanying notes are an integral part of the consolidated financial statements.
NEXTEER AUTOMOTIV
The accompanying notes are an integral part of the consolidated financial statements.
NEXTEER AUTOMOTIV
Total assets
25,649
24,807
The accompanying notes are an integral part of the consolidated financial statements.
NEXTEER AUTOMOTIV
The accompanying notes are an integral part of the consolidated financial statements.