Annual Report discussion

For
Bajaj Auto Limited

Presented By :
Group 2 (Section B )
Apoorva Jain(14023)
Ashok Mohan L(14026)
Avinash Singh(14029)
Bharatkumar M Subnis(14032)
Shivendra Gupta(14146)

Q2 :Referring to the Standalone financial statements, what
information is contained in the Net cash flow from financing
activities? Why is this piece of information relevant?
This section of cash flow statement measures the movement of cash flow
between the firms and its owners and creditors.
A category in a companys cash flow statement that accounts for external
activities that allow a firm to raise capital and repay investors, such as
issuing cash dividends, adding or changing loans or issuing more stock.
Cash flow from financing activities shows investors the companys financial
strength
For Bajaj auto the net cash from financing activites is negative. That means
the company is servicing debt. But it can also mean that the company is
making dividend payment and stock repurchases.
The above might be of interest to investors.
Q.3)Referring to the Standalone financial statement under Notes to financial
statements, what is the managements policy on recognition of revenue
from domestic and foreign sales? Again referring to the same, what system
of accounting has been followed?
1. Managements Revenue Recognition Policy:
Domestic sales are accounted for on dispatch from the point of sale i.e. when the
risks are transferred to the buyer.
Export sales are recognised on the date of the mate's receipt/shipped on board
and initially recorded at the relevant exchange rates prevailing on the date of the
transaction.

2. System of Accounting :
The Company follows the mercantile system of accounting and recognises income
and expenditure on an accrual basis except in case of significant uncertainties.