Report on Financial Structure of Maruti Suzuki India Limited

Submitted By
Mohammad Abrar Faiaz Sabab
Registration ID: 11801100

Course Title :Basic Financial Management

Cource Code: FIN302
Faculty Name: Annu Kumari
Section: Q1803
Date of Allotment: 18-01-2020
Date of Submission: 30-03-2020
Assigned Parts: Mission,Vision & Source of Finance with Interpretation.

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 Index

❖ Company Profile
❖ Source of Finance

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 Company Profile

Mission of the Company:-

➢ To create exceptional automotive value for our customers byharmoniously blending

safety, quality and efficiency. With our diverseteam, we will provideresponsible
stewardship to our community andenvironment while achieving stability andsecurity now
and for futuregenerations.

Vision of the Company:-

➢ The leader in Indian automobile industry, creating customer delight and share holder’s
wealth.
➢ A pride of India.

➢ Source of Finance

All figures are in crores

Particular 2019 2018 2017 2016 2015

Capital 151.00 151.00 151.00 151.00 151.00
Reserve &
45,990.50 41,606.30 36,280.10 29,733.20 23,553.20
Surplus
Non-
Current 2,640.00 2,170.70 1,593.10 1,016.60 1,023.80
Liabilities
Current
14,150.30 15,442.10 13,226.40 11,039.20 8,823.00
Liabilities

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 Capital

151 151
2019
2018
2017

151 151 2016

2015

151

Reserve & Surplus

50,000.00 45,990.50
45,000.00 41,606.30
40,000.00 36,280.10
35,000.00
29,733.20
30,000.00
23,553.20
25,000.00
Reserve & Surplus
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2019 2018 2017 2016 2015

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 Non-Current Liabilities
3,000.00
2,640.00

2,500.00
2,170.70

2,000.00
1,593.10
1,500.00
Non-Current Liabilities
1,016.60 1,023.80
1,000.00

500.00

0.00
2019 2018 2017 2016 2015

Current Liabilities
18,000.00
15,442.10
16,000.00
14,150.30
14,000.00 13,226.40

12,000.00 11,039.20

10,000.00 8,823.00
8,000.00 Current Liabilities

6,000.00
4,000.00
2,000.00
0.00
2019 2018 2017 2016 2015

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➢ Interpretation :-

Sources of finance for the my company is divided into main three parts . First one is
capital of the company which is 151cr in 2019 but it has not change since
2018,2017,2016,2015 . It remain constant which means that the company’s not putting
pressure on the capital to raise the funds . Which is a good sign which means that they
don’t have to bear capital loss in case of an emergency .

➢ Reserve and Surplus:-

You might have notice that there reserve and surplus are increasing since 2015 . At that
time it was 23553.20 but now it is at 45990.50 which mean that they have a lot of funds
in case they have to increase there production or they have to buy something .Because
reserve and surplus are used in when there is an emergency require of funds to be utilize
for something . There reserve and surplus means that they have good profits in the past
because any company put less money in there reserves when the have less profits but
there reserves has almost doubled in some last years .

➢ Non-Current Liability:-

Non-Current Liabilities are the obligations of the company which are expected to get paid
after the period of one year and the examples of which include long term loans and
advances, long term lease obligations, deferred revenue, bonds payable and other Non-
Current Liabilities. There non current liability have increased over the last yes which
means that they have borrowed more long term liability which states that the have high
loan amount which means that they have to pay it back with interest which increases
there cost .Also, the disclosure of all the non-current liabilities is very much necessary in
the prescribed format and valuation as per the guidelines are given by the standard.

➢ Current Liabilities:-

Current liabilities are a company's short-term financial obligations that are due within one year or
within a normal operating cycle. . An example of a current liability is money owed to suppliers in
the form of accounts payable. An operating cycle, also referred to as the cash conversion cycle, is
the time it takes a company to purchase inventory and convert it to cash from sales. SO the final
current liabilities have increased In the past 15,442.10 in 2018 but also gone down to 14,150.30 in
2019 . It is a good sine because companys short term liabilities have gone down which means they
are paying there dues and it also it help them to getting new sources of finance .

These were there sources of finance of Maruti Suzuki India Limited I have done the interpretation
of there sources of finance in an easy way so anyone can look at them and understand them easily
.

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