Chapter I

CHAPTER-I
INTRODUCTION
1.1 INTRODUCTION
Finance is defined as the provision of money at the time when it is required. Every
enterprise, whether big, medium, or small, needs finance to carry on its operations and to achieve
its targets. In fact, finance is so indispensable today that it is rightly said to be the lifeblood of an
enterprise. Without adequate finance, no enterprises can possibly accomplish its objectives.
Finance refers to the management of flow of money through an organization. A subjective
measure of how well a firm can use assets from its primary mode of business and generate
revenues. Financial statement analysis is largely a study of relationship among the various
financial factors in a business as disclosed by a single set of statements. It is a process of
evaluating the relationships component parts of a financial statement to obtain a better
understanding of a firm’s positions and performance. Financial statements analysis is an attempt
to determine the significance and meaning of the financial data so that forecast may be made of
the future ability to pay interest and debt maturities a (both current and long term) and
profitability of a sound policy. Finance is rightly termed as the science of money, as it is the life
blood of business. Finance is vital for the even running of the business. The process of
recognizing the financial strengths and weaknesses of the firm by properly-establishing
relationship between the items of the Balance Sheet and the Profit and Loss account. There are
various methods or techniques are used in examining financial schedule of change in working
capital flow, cost volume Profit Analysis and Ratio Analysis.
1.2 STATEMENT OF THE PROBLEM
Analyzing financial performance is the process of evaluating the common parts of

financial statements to obtain a better understanding of firm’s position and performance.
Financial performance analysis enables the investors and creditors evaluate past and current
performance and financial position, and to predict future performance. Financial statement is
used to judge the profitability and financial soundness of a firm. Financial performance is the
selection, evaluation, and interpretation of financial data, along with other pertinent information,
1
to assist in investment and interpretation of financial decision-making. Financial analysis may be
used internally to evaluate issues such as employee performance, the efficiency of operations and
credit policies, and externally to evaluate potentials investments and the credit worthiness of
borrowers, among other things You also need information’s on consumer spending, producer
prices, consumer prices and the completion. this is economic data that is readily available from
government and private sources. Besides financial statements data, market data, economics data,
in financial analysis you also to examine events that may help explain the firms present
conditions and may have a bearing on its future prospects. For example, did the firm recently
incur some extraordinary losses? is the firm developing a new product? That be incorporated in
financial analysis.
American institute of certified public accounts says “Financial statement are prepared for
the purpose of presenting a periodically review or report on the progress by the management and
dealt with
1) The status of investment in the business
2) The result achieved during the period under review Financial performance analysis
Financial performance analysis is the process of determining the operating and financial
characteristics of a firm from accounting and financial statement s. The goal of such analysis is
to determine the efficiency and performance of firm’s management, as reflected in the financial
records and reports. The analyst attempts to measure the firm’s liquidity, profitability and other
indicators that the business is conducted in a rational and normal way; ensuring enough returns
to the shareholders to maintain at least its market value.
1.3 SCOPE OF THE STUDY
The study mainly attempts to analyze the financial performance of the company selected
for the study. The financial authorities can use this for evaluating their performance in future,
which will help to analyze financial statements and help to apply the resources of the company
properly for the development of the company and IT employees to bring overall growth. The
2
present study attempt to develop a trend analysis model for Sales and Working capital and Profit
and Loss Accounts. There can be forecasting to evaluate the overall company in future.
1.4 SCOPE OF THE STUDY
 PRIMARY OBJECTIVE:
To evaluate the financial performance of MARUTI SERVICE MASTER JJ

IMPACT (DELHI) LTD.
 SECONDARY OBJECTIVES:
To trace the history and profile of the Maruti Service Master JJ Impact (Delhi) Ltd.
To find out the trend of financial analysis of past Five years using trend analysis.
To know the overall profitability position of the Maruti Service Master company.
1.5 INDUSTRIAL PROFILE
Maruti Udyog Ltd. Was ‘started in mid 1980s to bring an affordable car to the
common man. Government of India “joined up with Suzuki Motor of Japan for such a car. Those
days of Indian market had only Ambassador. (Of Hindustan Motors. Calcutta) Fiat (Of premier
Automobiles of Bombay) and Standard cars (Of standard motors Madras) as indigenous cars.
The price of a Maruti car was pegged to be around 30,000/- only. However, by the time the car
came into the market, it costs around Rs.50, 000/-still half the price of other Indian Car. Two
decades later. Government gave up the control of Maruti to Suzuki motors and Maruti went
public creating history in the stock market
For almost ten years. Right up to mid 90’s. Maruti had the monopoly of Indian car
Market. In the beginning. Maruti followed the conventional system of service, which was
successful as in the case of existing Indian Cars. It was the matter of pride. At every corner there
was garage that could repair Maruti Cars. Then the Euro norms of pollution came along.
3
Technology underwent the sea change. For example, a carburetor gave way to multi point (or
port) Field injection (MPFL) system. This electronically controlled. A small computer fitted in
the car, sensed the various conditions in the car and controlled the amount of Fuel to be injected
in the engine. MPFL did it for petrol. Now the roadside Mechanics could not repair such cars. To
repair such cars sophisticated and costly test equipment’s, apart from thorough training ware
required. If the bad repair job as by the roadside mechanic was done. The car would mal-
perform. The ignorant customer could become irritated with his car and lack confidence it. In the
availability of other cars, he would switch to them.
Around this time, the Indian had opened up. Foreign cars manufacture discovered
a huge potential in India, Hyundai, Ford, General motors etc. came in Maruti now had
competitions. Selling more depend on goods, he would switch to them. Maruti had followed a
system of authorizing repair agencies. Once the dealer workshop and other was Maruti authorized
service stations (or Masses) the former sold new cars and serviced.
Maruti decided to join up with Sumitomo Corporation. a huge trading

company of Japan with office in India to start an exclusive service station in Delhi, where
Maruti car market is the largest in country. Maruti countrywide also became a partner in
the joint venture (.1V). \with a small stake.
The objectives of MUL
 Modernization of the Indian automobile industry.
 Production of fuel-efficient vehicles to conserve scarce resources
 Production of large number of motor vehicles, which was necessary for

economic growth.
4
1.6 COMPANY PROFIL
INTRODUCTION
Maruti service masters MSM is a joint venture of Maruti Udyog ltd and
Sumitomo Corporation of Japan.
HISTORY
MSM was first set up in oklha industrial areas in Delhi in august 1999.
encouraged by its stupendous success. Maruti Udyog ltd decided to open MSM in other
metros and towns. Chennai become the second choice. A new modern service station was
formally inaugurated on 30 Jan 2004 in Guindy industrial area in Chennai.
AIM
To set up model workshops for Maruti .automobiles as a benchmark to

enhance the service infrastructure of Maruti.
VISION
To achieve high standards of customer satisfaction by providing quality service with

value additions to Maruti customers, over the product life cycle.
5
OBJECTIVES
 To engage, with respect to Maruti automobiles, in the business of:
 Service and repairs
 Body repairs
 Purchase and sale of used (pre-owned) cars through true value
 Sales and spare parts
 Accessory sales
 To engage, with respect to Maruti automobiles, in the business of Service and repairs and
other services
 To provide value added service such as insurance, extended warranty and Maruti
finance
 To make reasonable profit to sustain and expand the business.
 To provide feedback to Maruti regarding the product and services with respect to customer
expectations.
NEED FOR THE SERVICE OR TILE NEED FOR SERVICE MASTERS
TECHNOLOGY UPGRADATION
For almost ten years right up to mid 90’s. Maruti had the monopoly of
Indian Car Market. In the beginning, Maruti followed the conventional system of
service, which was successful as in the case of existing Indian cars. It was the matter
6
of pride. At every comer there was garage that could repair Maruti cars.
For example-a carburetor gave way to multi point (or Port) Fuel injection
(MPFL) system. This electronically controlled the amount of Fuel to be injected in
the engine. MPFL did it for petrol. Now the roadside Mechanics could not repair such
cars. To repair such car sophisticated and costly test equipment’s, apart from
thorough training ware required. If the bad repair job as by the roadside mechanic
was done, the car would mal-perform. The ignorant customer could become irritated
with his car and lack confidence it. In the availability of other cars, he would switch
to them.
COMPETITION
Around this time, the Indian had opened up. Foreign cars manufacture discovered a
huge potential in India. Hyundai, Ford, General Motors etc came in Maruti now had
competitions. Selling more cars depend on goods, lie would switch to them.
Maruti had followed a system of authorizing repair agencies. Once the dealer workshop
and other was Maruti Authorized service stations (or Masses) the former sold new cars and serviced
them. The later were smaller workshops for service and repairs, graded as `l1', `E3', or `C',
depending on their capacity and infrastructure to provide quality service.
However, the Maruti realized that this was not enough. They had to have direct
control over the service, to ensure that they expect the service station to do. Absolute quality at
the lowest price.
NEW JOINT VENTURE
Towards this end, Maruti decided to join up with Sumitomo Corporation, a huge
trading company of Japan with office in India, to start an exclusive service station in Delhi, where
Maruti car market is the largest in country. Maruti countrywide also became a partner in the _joint
venture (N), with a small stake.
7
Maruti-sumitomo-matrix
Maruti
 Largest car manufacturer in India.

 Market share of about 50%, unparalleled in the world.
 Consecutive winner for four years in JD power survey in customer
satisfaction.
 Concentrates oil small cars. Small car giant.
 Rolls of about 4000000 cars a year.
Sumitomo
 Over 400 years old

 Integrated business enterprise based on trade and investments.
 Nearly 900 branches/ subsidiaries in nearly 90 countries.
 Business ties with over 100.000 companies, worldwide.
 Interests in almost all fields of industry.
 Infrastructure of' MSM.
 Built on one acre plot in the industrial area in the city, MSM-Chennai boats of, a
unique, modern structure made up of' uniform sized steel columns and beams.
 Multi storied building, including shop floors.
 Basement and terrace parking.
 Unidirectional ramps to drive cars up/down.
8
MARUTI SERVICE MASTERS: -
The Maruti Service Masters (MSM) was born in 13th Aug 1999 at Okhla, an industrial
area in Delhi. Mr. Pankaj Narula, a very senior manager of maruti and Mr. Sharad Malhotra, a
very experienced Person in an automotive business in a sumitomo corporation were deputed
to run MSM. On 20\05\2000, MSM was awarded ISO 9002 certification.
MSM is controlled by a board of directors, consisting of seven people.

Three are from Maruti, including Mr. Jagadish Khattar, the MD of Maruti, apart from Mr.
Pankaj Narula. There are three from sumitomo (India) too, including their CMD, Mr.
Yoshimoto. The Seventh, Mr. Vivek Agarval is from Maruti Countrywide.
Overnight, Maruti Service Masters became a huge success in Delhi. Such was the
Quality standard of service. Soon there was wailing time of over two weeks for one to get one's car
serviced at MSS. The customers booked and waited ('or their turn, MSS proved itself. After
becoming the name of reckons with, in four years flat, it was time to move on to other places. China
became the first choice.
INFRASTRUCTURE OF MSM
Built on an acre plot in the industrial area in the city. MSS China Boasts, of:
 A unique modern Structure made by of uniform seized steel columns and beams.
 Multi steroid building, including shop floors
 Basement and terrace parking.
 Unidirectional ramps to drive the cars up/down
 A car lift for immovable cars.
 Polyurethane painted shops floors
9
 Fully air conditioned customer areas and offices
 Aesthetically glazed front elevation
 Mature Service Masters – CHENNAI (MSM-C)

China became the choice of the next MSS, for the two following main reasons.
Most of the automotive manufactures in the car segment are based in china. Ford, Hyundai,
Hindustan Motors (Lancer Cars) are examples.
Union Motors, the largest dealers in china for Maruti cars, wound up, leaving a huge
gap among Maruti Service Network to be filled. So, there was competition, as a void in
own service network. The perfect climate.
A one acre plot was purchased in a south phase of the industrial area in Guindy
in Chennai in Feb 2003. Construction began on 4th of July, the same year. It was build as a very
modern structure in a world class standard (for a intended workshop), with very main unique
features, some of which arc as below.
MSM-C, as well as MSM-D (for Delhi), which is the I lead Office of

MSM, Is the field of car service, hut also in tile manner Of its Functioning. All operation
arc carried out on-line oil computer, eliminating Human error. LAN is the byword. There is an
"Extra-net" too, direct with Maruti Udyog Ltd, apart from the intra-ncl.
The Project was designed by M/S CR Narayana Rao, and executed by M/S.Ganeshan
builders, both giants in Chennai under the direct supervision of the department f civil
Engineering of Maruti. The Project was completed in record time and MSM-C was
inaugurated by none other than the MD of Maruti Udyog Ltd, Mr. Jagadish Khattar, along
with Mr. Yoshimoto, the CMD of Sumitomo Corporation (India), on 30th .fan 2004. MSM-C is a
Project of over RS.12 Crores.
10
MSM-C has People at all levels, trained to provide perfect quality service.
Major Strength of MSM-C is the presence of the following at the help of its affairs,
Mr. M. Gurumurthy, as DGM works. He is tile Regional Service Advisor (RSR) in the Regional Office
Of Maruti, in Chennai, looking after service network of entire Tamilnadu and Kerala Region.
Mr. P. Bala Kumaran, as the work manager (Spares) He has long

Experience in Maruti Workshop.
Mr.B. Sridharan as a Deputy Manager (Spares) with the hands on Experience

in Maruti Spares for a long time.
Mr. M. Sekar, as the Asst. Manager (Service). He was an Instructor/Trainer in the

Regional Training Center of the Chennai Regional Office of Maruti, for innumerable years
AIM OF MSM-C
To be the first business automobile service, period.
METHODS TO ACHIEVE THE AIM
Method arc: II Humanity and therefore, easy, sonic of the Methods, Most of them
Intangibles, are enumerated below, Intangibles arc the foundations for tangibles and help in the
long run. MSM-C intends to run long.
a) Good overall Knowledge of Maruti cars.
11
b) Good Knowledge of Maruti Systems.
c) General awareness of automotive field.
d) Through Knowledge of own area of -operation.
e) Energetic and positive approach.
f) Pleasant and impeccable behavior.
g) Respect for the customers.
h) Love for customer cars, Maruti cars.
I) Empathy for the customers
j) Positive outlook.
k) Imperturbable attitude.
l) Humanity.
m) Trust in MSM as its System.
n) Trust in superiors.
o) Belief in colleagues.
p) Honesty.
q) Integrity.
r) Altruism (Unselfishness), as part of personality.
s) Duty before Itself
t) Friendly disposition. The longest word in English is "Smiles".
u) I Harmonious teamwork.
v) Taking Responsibility.
12
w) Sharing Responsibility.
x) Helping colleagues in distress.
y) Expanding the menial horizon to encompass the whole of MSM.
z) Letting the Customers be the winner, without MSM losing. Win-Win situation.
Utilities
 Silent generator as a standby for HT power.
 Water and effluent treatment plants.
 Recycling of water used water, to minimize wastage.
 IM treatment plant for drinking water.
 Energy saving wind ventilators.
 Rain water harvesting.
Facilities
State of art and equipments are installed to facilitate quick service and
accurate Repairs to maintain the highest quality.
Some of these are:
 Electrical car lifts of different capacities.
 Hi-tech electrical test bench.
 High quality gas charging machine for A/c.
13
 Computer Controlled Wheel aligner.
 Accurate body puller to bring, body line to original dimensions.

 Modern, dust proof paint booth to give factory finish.
 Electronic paint mixer to give thousands of hues.
 Digital pollution check machine.
 Automatic car washing system.
SERVICE, OFFERED
The idea is to provide a single point contact for all the car needs of a Maruti
owner. No running from pillar to post.
Service & Repairs: Complete maintenance solutions.
 Free services
 Paid services
 Warranty jobs.
 Running repairs.
 Perfect diagnostics and repairs through hi-tech systems and equipment.
 Maruti Genuine Parts (MGP)
 High skilled Maruti trained manpower.
14
 Professional & personalized care.
 Japanese standards, practices and ethos.
Body Repair & Paints:
 Back to factory finish.

 Crash Repair system, MIG - MAG & Sort welders, dust-free paint both.
 Fast and invisible repairs.
 2k (Polyurethane) painting technology.
 Customization options include interior painting, two-toile painting.
 Over 70,000 shades available to choose from
 Virtually cashes repairs through insurance.
 Totally hassle-free processing of Insurance.
Purchase and sale of pre-owned cars (Maruti True Value):
As good as new cars.
Seller's Advantage:
If you wish to- sell your Maruti car.
 Right price for the car.

 Scientific evaluation for price assessment.
 Hassle free & prompt payment.
 No commission charged.
 Attractive new car exchange option.
15
Buyer's Advantage:
 If you wish to buy a pre-owned car.
 Antecedents of the car confirmed.
 Maruti certified pre-owned cars.
 Cars refurbished by MSM.
 Up to 1 year / 15000 KMs warranty.
 3 Free services.
 Exciting Finance schemes.
Insurance Sale - Maruti Insurance
Total peace of mind.
 Car insurance, renewals, claim processing, post accidents repairs all under one roof
 On the spot policy issuance. No cover notes, No waiting, period, No hassles.
 Trouble free claims. MSM will handle all aspect from surveyor appointment to
Damage assessment to high quality image.
 Virtually cash-less repairs. Only on marginal difference of depreciation to he paid.
Extended Warranty Sale:
Worry free driving for long.
o Prior to expiry of' primary warranty.
o Maximum discount within 60 days of effecting primary warranty.
16
o Warranty gets extended up to 4 years / 80,000 KMs.
Spare Sales:
 Assurance of high reliability.
 Spares supplied by Maruti.
 If from vendors, only authorized vendors.
 Exact spare for the exact model.
 Prices as fixed by Maruti.
Accessory Sale:
Especially for your cars.
 Only Maruti approved accessories.

 Provision for figments already given in car.
 Appropriate connectors provided in car.
 The need to cut/modify wires eliminated.
 Performance of the car remains unaltered.
ORGRANISATIONAL PROFILE
Name of the Company MARUTI Service MASTERS
17
9(SP) TVK Industrial Estate,
Location of' tile Company Guindy, Chennai - 600 032.
Contact No: - 52120304 / 05
Line of Activities a. Service
b. Body Repairs & Paints
c. Spares
d. Insurance
e Accessories
CORPORATE CONCESSIONS
We have various packages to give you benefits as I corporate customer. These benefits packages go
on for a decade. We value loyalty.
Some of the silent features of' the package are
1. On free service, tree oil filters / free wheel balancing /(i ce wheel alignment/ tree
pollution certificate etc.2. On Mid Service, i.e. every 5000 KMs, 50% discount on
labour charges.
2. On paid service, 10% discount on labour/tree engine oil/free wheel alignment/free wheel
18
MARUTI SERVICE MASTERS
balancing etc.
9(SP) TVK Industrial Estate,
3. Free general check up/free body
/free
wash
wax Guindy, polish etc in
between mid Chennai – 600 032. and paid service.
In short every time you send your car to Maruti
Service Masters, your Contact No : 52120304 / 05 car gains and so do
you. A well- maintained car by
ORGANISATION STRUCTURE
well trained technicians in the
best of facility as on where else in Maruti
Service Masters the ultimate driving pleasures for you.
19
DEPARTMENTAL FUNCTIONS
Human Resource D e p a r t m e n t
The Head of human Resource Department is Mr. K. Veeraraghavan. The various

HR Functions as carried out by the HR department of MSM arc:
20
Recruitment
The recruitment procedure used by MSM is open interviewing method. The prospective arc
invited for interviews and selection is done on the basis of their performances in the interviews.
Management Information Systems
These are used by the HR department to keep track of the trends in payment. This is used as
a control mechanism to control the costs of the company.
Absenteeism
The HR department deals with regular in a strict fashion. When an employee goes on
along leave without prior information the first notice is served to him. He is asked for an
immediate explanation. If it is not received a stricter second notice is served on him. If he still
does not respond he is sent a termination of service notice.
Training and development
Training is provided to employees at the shop floor level. These are the ones who
actually service the vehicles. They are provided with on job training. Trainees and interns are also
accepted. Apprentices are also taken in with a one-year contract and stipends are given.
Liaison with the government departments
It is also a HR function to maintain good relations with the government officers to run
smoothly without danger.
Contract labour
MSM signs Contracts for employees in the house keeping department and the canteen. The
maximum period for such contract is one year.
Discipline
Employees are expected to wear uniforms in their work place. They are expected to
21
behave cordially with their colleagues and seniors.
Job satisfaction
Employee satisfaction is very important as dissatisfied employees will lead to high rate of
attrition. The lit manager therefore has one to one counseling sessions with all the employees.
Performance appraisal
The performance of employees is appraised by their department heads on the basis of the
accuracy of their work, the speed, and their attitude. It is then approved by the HR manager.
Man power planning
Manpower planning is done keeping in mind the maximum utilization of the available
resources. The company follows the policy of limiting and restricting the cost of the company.
The administrative functions of the HR Department are:
 Event management
 Canteen administration. Monthly
 Monthly Routine bills
 Management of company on Issue Vehicle
 Issue of identity cards
 Maintenance of Plant & Machinery, Office Equipments, Stationery Purchase and Management .
 Courier and post
 Security
Accounts Department Functions
The Accounts Department of MSM is under. Mr. Sudhir. We spent four days with the
accounts department. Like everything else the accounts department of the company is also fully
computerized. The company uses Tally 7.2 to maintain its accounts.
22
The various transaction are entered into the computer daily and the account balances are
reconciled with the actual cash and bank balances, the daily reports from the counter sales section,
the front office and work shop records. Monthly final accounts are also prepared.
All required accounts arc maintained in a systematic manner. The concept or MIS
(Management Information System) is used. Department wise profitability analysis is done for
every department on a monthly basis.
Marketing Department Functions
Mr. Madhan Kumar heads the Marketing department of Maruti Set -vice Masters(MSM)
does not have a fixed budget plans for marketing. Marketing strategies and method used arc:
 Newspaper Advertisements
 Hoardings
 Banners
 Door step marketing
 Corporate camps
 Locality camps
 Free check up camps
 Pamphlets and paper inserts
 Tele calling
 Offers
23
Offers given by MSM
 Wheel balancing and alignment Free worth It. 3,15 Corporate benefit package worth
Rs. 10880
 Referral schemes
 Free pick tip and drop
 Lucky draws and slogan writing Competition at BPCL outlets

The marketing department uses the Automate software to keep track of service dates and also to
generate service marketing reports.
True Value Department Functions
The True Value department is headed by Mr. Amir Naiyer. The True Value department of
Maruti deals with the purchase and sales of pre-owned Maruti cars. The True Value
department ensures (hat the customers gel the true value of their used Maruti cars.
PURCHASE OF PRE-OWNED CARS
The department however does not buy all Maruti cars. The vehicle must fulfill certain
conditions as laid down by the company rules. A team of Maruti executives visits the
prospective seller and inspects the vehicle. The purchase deal' can be finalized only if the vehicle
satisfies the conditions.
The criteria that a vehicle must satisfy are:
 The vehicle must not be an accidental vehicle

 The vehicle must not be older than 7 years
 The vehicle must not have more than 3 previous owners
 The vehicle must be only of Tamil Nadu registration
 The expenditure on repairs and renewals of the vehicle must not exceed Rs.20000
24
Once the vehicle has been cleared in the preliminary evaluation, a 120-point evaluation is
done. In this evaluation the vehicle is scrutinized and a thorough study is made to estimate (lie
repairs and renewals that the company has to undertake to make the vehicle fit for resale. Once this
amount is arrived at, the company Quotes the price it is willing to purchase the vehicles al. After
negotiations if the customer is willing to purchase the vehicle, the company goes ahead with the
legal procedures. The legal documents required for this purpose are:
 Purchase and/or Possession letter

 Signature verification
 Letter to RTO for Transfer of Registration
 Letter to Insurance company for Transfer of Insurance
 Payment Authorization Letter or Third Party Payment Letter (if necessary)
 Transfer of Ownership
 Letter Form No. 29 (in duplicate)
 Form No. 30 (in duplicate) Form No. 35 (in duplicate)
 Letter to MSM in case of payment to Finance company (if the vehicle is under
hypothecation)
 Letter to Finance Company in case of payment to Finance company (if the vehicle is
 under hypothecation)
 Resolution authenticating the authority of the concerned offers who is signing all
documents on the behalf of the company (for private company limited)
 Authority letter to sell required from partnership firms
SALES OF PRE-OWNED CARS

Once a pre owned car has been acquired by True Value, it is serviced and repairs and
renewals are done wherever necessary. The car when ready for sale is kept in the showroom.
The prospective customers then have a look at the car. The deal is finalized if the customer is
willing to pay tile quoted price. The statutory documents required for sale of 'a car are: In case of an
individual:
Address, identity and signature proof
25
Copy of PAN Card / Form 60
 Three passport size photos In case of company / partnership

 Address Proof of the company
 Identity and signature proof of the authorized signatory
 Three passport size photographs of authorized signatory
 Copy of Sales Tax registration certificate or copy of Income Tax Return for last three
years
 Copy of PAN Card of the company
 Authorization letter
Spares Department Functions:
Mr. Ramu who heads the spares department of Maruti Service Masters guided us.
He briefed us about the functioning of the spares department. It deals with the controlling and
managing of spares. Like any other organization it also had certain procedures to buy stock,
maintain them, and also rate their vendors
MEASURES OF INVENTORY CONTROL:
To control their inventory they use F5N classification. This classification takes into account
the pattern of issues from stores. The three letters stands for fast moving slow moving and non-
moving. This classic fiction is very handy when there is desire to control obsolescence.
Items classified as `S' and `N' require attention. There must be a change in technology, or in
specification or a particular spare part to improve its Sales. This enables managers to act best in tile
interest of the organization. Proper stocks need to be maintained of 'F' Category goods. More can
be spent on inventory of 'F' classification but control should be exercised f-Or goods of `5' or `N'
classification.
MAINTENANCE OF STOCK:
To maintain stock in an organized way they use bins and maintain stock ledgers. The
Software Automate is used to keep record of the Inflow and outflow of various items of
26
inventory.
VE NDOR RATIN G :
The hallmark of the effective purchase department is the quality of suppliers'

selected. This implies that they should be in a position to access and rate their performance
against what is expected from an ideal supplier. Hence this department also rates its vendors.
The three main categories used by MSM to rate a vendor are:
 Quality
 Promptness in delivery and response
Price of the spare part As listed the first preference is given to the quality, then the order follows.
27
CHAPTER-II
REVIEW OF LITERATURE
Kumar Mohan M.S, Vasu. V. and Narayana T. (2021) The study has been made
through using different ratios, mean, standard deviation and Altman’s Z score approach to study
the financial health of the company. The study reveals there is a positive correlation between
liquidity and profitability ratios except return on total assets as well as Z score value indicate
good health of the company. The author tries to examine the qualities & quantities performer of
Maruti Suzuki co. & how had both impact on its market share in India, for this study secondary
data has been collected from annual reports, journals, report automobile sites. Result shows that
MSL has been successfully leading automobile sector in India for last few years.
Takeh Ata & Navaprabha Jubiliy (2021) Author has made conceptual model to
outline the impact of capital structure on the financial performance i.e. capital structure is
independent variable that value is measured by using four ratios namely, financial debt, total debt
equity, total asset debt and interest coverage ratio where as financial performance is dependent
variable that value is measured by using four ratios as return on assets, return on equity ,
operating profit margin and return on capital employed. Takeh Ata & Navaprabha Jubiliy (2015)
Author has made conceptual model to outline the impact of capital structure on the financial
performance i.e. capital structure is independent variable that value is measured by using four
ratios namely, financial debt, total debt equity, total asset debt and interest coverage ratio where
as financial performance is dependent variable that value is measured by using four ratios as
return on assets, return on equity , operating profit margin and return on capital employed.
28
Agarwal, Nidhi (2020) The study focus on the comparative financial performance of
Maruti Suzuki and Tata motors ltd. The financial data and information required for the study are
drawn from the various annual reports of companies. The liquidity and leverage analysis of both
the firms are done. To analyze the leverage position four ratios are considered namely, capital
gearing, debt-equity, total debt and proprietary ratio. The result shows that Tata motors ltd has to
increase the portion of proprietor’s fund in business to improve long term solvency position.
Made an attempt to analyze the financial soundness of the Hero Honda motors limited have
identified three factors, namely liquidity position, solvency position and profitability position
based on the study of period 2002 to 2010 using ratio analysis.
Sarwade Walmik Kachru (2020) Analyzed the effects of liberalization, government

delicensing and liberal trade policies on the growth of Indian auto mobile industry. The study
recommends that investing four- wheeler is going to be smart potion not only in India but all
around the world. The report shows about the current state and future prospects of the worldwide
automobile industry. This survey reports the manufacturer, executive and consumer views about
four aspects, mobility culture, technological fit, business model readiness and market share. This
study reveals the prosperity of Tata motors company. It can be concluded that inner strength of
company is remarkable. Company can further improve its profitability by optimum capital
gearing, reduction in administration and financial expenses for the growth of company.
Srivastava Anubha (2020) Data analysis has been done using the top-down approach,
i.e., Economic analysis, industry analysis, company and technical analysis to find relationship
between automobile sector index with market index. Mahindra and Mahindra have a great
position on the stock market and will attract investor and this could lead to expansion and
growth. Thus, Tata motors and Maruti Suzuki need to take care of their stock and expansion.
Find that Indian automobile industry is a high-flying sector these days and emerging as an export
hub in wake of liberalization and globalization. This paper revises the category wise production,
sales and exports of automobile industry in India. Industry growth can be viewed in term of pre
and post liberalization. As government allows 100 percent FDI, increase 15% in customs duty on
cars and MUVs to encourage local manufacturer and concessional import duty on specified parts
of hybrid vehicles.
29
Shende Vikram (2019) This research will be helpful for the new entrants and existing
car manufacturing companies in India to find out the customer expectations and their market
offerings. The objective of study is the identification of factors influencing customers
performance for particular segment of cars. Recognized India’s per capita real GDP growth as
one of key drivers of growth for country’s automobile industry. The central government would
be set up various task forces on issue related to taxation, land acquisitions, labor reform and skill
development for auto industry. To study the credit worthiness of selected firms in Indian car
industry, tiruchy. Professor Edward Altman of New York University developed method Z score
analysis to predict the company failure or bankruptcy. To measure the fiscal fitness of a company
combined a set of five financial ratios. The main idea behind this study is to analyze the financial
performance of Ashoka Leyland ltd. at Chennai. The result shows that financial performance is
sound and also suggested to improve financial performance by reducing the various expenses.
Daniel A. Moses Joshunar (2019) The study has been conducted to identify the financial
strength and weakness of the Tata motors Ltd. using past 5-year financial statements. Trend
analysis & ratio analysis used to comment of financial status of company. Financial performance
of company is satisfactory and also suggested to increase the loan levels of company for the
better performance. Investing the impact of price movement of share on selected company
performance. It advises due investors consider various factors before choosing the better
portfolio. Sentimental factors do play a role in price movement only in short term but in long run
annual performance is sole factor responsible for price movement.
Zafar S.M. Tariq & Khalid S.M (2018) The study explored that ratios are calculated
from financial statements which are prepared as desired policies adopted on depreciation and
stock valuation by the management. Ratio is simple comparison of numerator and a denominator
that cannot produce complete and authentic picture of business. Results are manipulated and also
30
may not highlight other factors which affect performance of firm by promoters. The author
studied the sample of automobile companies to evaluate the performance of industry through
indicators namely sales, production and export trend etc. for period of 2013-14 to 2017-18. The
study finds that automobile industry has been passing through disruptive phases by over debt
burden, underutilization of assets and liquidity instability. The researcher suggested to improving
the labor productivity, labor flexibility and capital efficiency for success of industry in future.
Sharma Nishi (2017) Studied the financial performance of passenger and commercial
vehicle segment of the automobile industry in the terms of four financial parameters namely
liquidity, profitability, leverage and managerial efficiency analysis for the period of decade from
2010-14 to 2014-17. The study concludes that profitability and managerial efficiency of Tata
motors as well as Mahindra & Mahindra ltd are satisfactory but their liquidity position is not
satisfactory. The liquidity position of commercial vehicle is much better than passenger vehicle
segment. Explored an overview of automobile industry. Indian automobile industry itself as a
manufacturing hub and many joint ventures have been setup in India with foreign collaboration.
SWOT analysis done there are some challenges by the virtue of which automobile industry faces
lot of problems and some innovative key features are keyless entry, electrically controlled
mechanisms enhanced driving control, soft feel interiors and also need to focus in future on like
fuel efficiency, emission reduction safety and durability.
31
CHAPTER III
RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY
This chapter deals with the various process of the metamorphosis of the research idea into
research action. The adopted methodology for the study is the various tools, which essential to
analyze critical financial position of the firm.
3.2 RESEARCH DESIGN
This is a complete master plan of the research study to be commenced. Simply stated, it
is a frame work, a blue print for the research study, which guides the collection and analysis of
the data. The reputation of the research lies in the MARUTI SERVICE MASTERS JJ IMPAX
(DEHLI) LTD that it makes a statement of what is to be done in order to achieve the research
objectives and how it is to be done. In this study analytical research design is used.
3.3 ANALYTICAL RESEARCH
The study of data involves classifying the relations of calculated information to the
research problem in hand. Here, the researcher makes use of different tools for analyzing data
and starting association between the information gathered and the research problem.
2.3 DATA COLLECTION
The information collection begins after the researcher, problem has been well-defined
and research design chalked out. While determining the method of data collection to be used for
the study is Secondary data Collection.
SECONDARY DATA:
The data that is used for the research purpose is secondary data. The source of data
is taken from the company’s annual reports.
32
TOOLS AND TECHNIQUES:
 Ratio analysis
 Comparative Balane Sheet Analysis
 Common Size Balance Sheet Analysis
 Trend Analysis
1. RATIO ANALYSIS
Ratio analysis means “The process of computing, determining and presenting

relationship of items and groups of items in the financial appraisal. Ratios express the numerical
relationship between two figures. Accounting ratio are used to describe significant relationship
which exist between figures shown in a balance sheet, in a profit and loss account, in a budgetary
control system or in any other part of the accounting organization”.
2. PROFIT AND LOSS ACCOUNT
Profit and Loss account or income statement is generally considered to be the most
useful of all financial statements. IT explains what has happened to a business as a result of
operations between two balance sheet dates. For this purpose, it matches the revenues and costs
incurred in the process of earning revenues and shown the net profit earned or loss suffered
during a particular period.
3. BALANCE SHEET
The balance sheet shows how a company stands at a given moment of time, it reveals
the property owned by the business, the assets and the debts owned by the company and the
liabilities.
33
“The American Institute of certified public Accounts” defined “Balance Sheet as a
tabular statements or summary of balance (debit and credit) carried forward after an actual and
constructive closing of book of account and kept according to principles of accounting.
4. CURRENT ASSETS
Current Assets include cash and those other assets, which can be converted into cash
within one year such as marketable securities, accounts receivables (debtors) stock (inventories)
and prepaid expenses.
According to Alexander Wall, “Current Assets are such assets as in the ordinary and
natural course of business moves onward through the various processes of production,
distribution and payment of goods, until they become cash or its equivalent by which debts may
be readily an immediately paid.
5. CURRENT LIABILITIES
Current Liabilities include those liabilities, which are to be paid by the firm within one
year and include creditors, bills payable, accrued expenses, bank overdrafts, income tax liability
and long-term debts due to nature within current year.
34
CHAPTER IV
4.1 RATIO ANALYSIS
4.1.1 Current Ratio

The ratio of current assets to current liabilities is called current ratio. In order to measure
the short-term liquidity or solvency of a concern, comparison of current assets and current
liabilities is inevitable. Current ratio indicates the ability of a concern to meet its current
obligations as and when they are due for payment.
CURRENT ASSETS
CURRENT RATIO = ---------------------------------
CURRENT LIABILITIES
TABLE 4.1.1 SHOWING THE CURRENT RATIO OF THE COMPANY
Year Current asset Current liability Current ratio
2018 52060764 28306682 1.839168716
2019 47719777 28329313 1.684466439
2020 47816862 26883119 1.778694727
2021 51032641 27789839 1.836377713
35
2022 53009942 25484839 2.080057951
CHART 4.1.1 SHOWING THE CURRENT RATIO OF THE COMPANY
2.5
1.5
0.5
0
2018 2019 2020 2021 2022
Current Ratio
INTERPRETATION:
From the above table of chart shows the current ratio for 2018 is 1.83, 2019 is 1.68, 2020
is 1.78, 2021 1.84, and 2022 is 1.82. It shows that in the financial year 2021 – 2022 has highest
current ratio.
36
4.1.2 Fixed Asset Ratio
This ratio establishes the relationship between fixed assets and long-term funds. The
objective of calculating this ratio is to ascertain the proportion of long-term funds invested in
fixed assets.
FIXED ASSETS
FIXED ASSET RATIO = ---------------------------------
LONG TERM FUND
TABLE 4.1.2 SHOWING THE FIXED ASSET RATIO OF THE COMPANY
FIXED LONG TERM

Year
ASSET FUND FIXED ASSET
RATIO
12838881 22.56021627
2018 289647932
13053521 22.54096807
2019 294239000
13909436 20.87205017
2020 290318446
15297089 18.73030045
2021 286519073
25.81218393
2022 282657714 10950554
37
CHART 4.1.2 SHOWING THE FIXED ASSET RATIO OF THE COMPANY
30
25
20
15
10
0
2018 2019 2020 2021 2022
FIXED ASSET RATIO
INTERPRETATION:
From the above table of chart shows the Fixed Asset ratio for 2018 is 22.56, 2019 is 2.54,
2020 is 20.87, 2021 is 18.73, and 2022 is 25.81. It shows that in the financial year 2021 – 2022
has highest Fixed Asset Ratio.
38
4.1.3 Cash Position Ratio
A cash position represents the amount of cash that a company, investment fund, or bank
has on its books at a specific point in time. The cash position is a sign of financial strength and
liquidity.
CASH IN COMPANY
CASH POSITION RATIO = ---------------------------------
CURRENT LIABILITIES
TABLE 4.1.3 SHOWING THE CASH POSITION RATIO OF THE COMPANY
Cash Position
Year Cash-Company Current liabilities
Ratio
2018 309581 28306682 0.010936676
2019 286508 28329313 0.010113482
2020 95273 26883119 0.003543971
2021 168902 27789839 0.006077833
2022 25785 25484839 0.001011778
39
CHART 4.1.3 SHOWING THE CASH POSITION RATIO OF THE COMPANY
0.012
0.01
0.008
0.006
0.004
0.002
0
2018 2019 2020 2021 2022
Cash Position Ratio
INTERPRETATION:
From the above table of chart shows the Cash Position ratio for 2018 is 0.011, 2019 is
0.01, 2020 is 0.003, 2021 is 0.006, and 2022 is 0.001. It shows that in the financial year 2017 –
2018 has highest Cash Position Ratio.
40
4.1.4 Proprietary Ratio
This ratio is also termed as capital ratio or net worth to total asset ratio. This is one of the
variants of dept equity ratio. This shows the relationship between shareholders’ funds and total
assets.
SHAREHOLDERS FUND
PROPRIETARY RATIO = ---------------------------------
TOTAL ASSET
TABLE 4.1.4 SHOWING THE PROPRIETARY RATIO OF THE COMPANY
Year Net Profit Total Asset Proprietary Ratio
2018 303320472 341708696 0.887658042
2019 300132894 341958777 0.877687354
2020 295869649 338135308 0.87500371
2021 301125500 337551714 0.892087012
2022 295779421 335667656 0.881167475
41
CHART 4.1.4 SHOWING THE PROPRIETARY RATIO OF THE COMPANY
0.895
0.89
0.885
0.88
0.875
0.87
0.865
2018 2019 2020 2021 2022
Proprietary ratio
INTERPRETATION:
From the above table of chart shows the Proprietary ratio for 2018 is 0.887, 2019 is
0.877, 2020 is 0.875, 2021 is 0.892, and 2022 is 0.881. It shows that in the financial year 2020 –
2021 has highest Proprietary Ratio.
42
4.1.5 Overall Profit Ability Ratio
The overall profitability ratio is also called return on investment. It shows the ratio of
return on the whole capital employed in the enterprise. It is also named as retrieval on assets,
return on capital employed.
NET PROFIT
OVERALL PROFIT ABILITY RATIO = ---------------------------------
TOTAL ASSET
TABLE 4.1.5 SHOWING THE OVERALL PROFIT ABILITY RATIO OF THE

COMPANY
Year Net Profit Total Asset Overall Profit

Ability Ratio
341708696 0.029503323
2018 10081542
341958777 0.039468412
2019 13496570
2020 15382538 338135308 0.045492256
2021 8636374 337551714 0.025585336
2022 14403396 335667656 0.042909693
43
CHART 4.1.5 SHOWING THE OVERALL PROFIT ABILITY RATIO OF THE
COMPANY
0.05
0.045
0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
2018 2019 2020 2021 2022
Overall Profit Ability Ratio
INTERPRETATION:
From the above table of chart shows the Overall Profit Ability ratio for 2018 is 0.029,
2019 is 0.039, 2020 is 0.045, 2021 is 0.025, and 2022 is 0.042. It shows that in the financial year
2019 – 2020 has highest Overall Profit Ability Ratio.
44
4.2 COMPARATIVE BALANCE SHEET ANALYSIS
TABLE 4.2.1 SHOWING THE COMPARISON OF INC/DEC % OF THE

YEAR OF 2018-2019
Inc%/Dec
Particulars 2018 2019 Inc/Dec
%
I. Assets
i. Fixed Assets
a) Capital WIP 62450877 68026385 5575508 8.927829789
b) Building 70381825 70688374 306549 0.435551366
c) Computers 4836212 46615820 41779608 863.8911611
d) Depreciation Fund -75764432 -81437085 -5672653 7.48722435
e) Furniture & Fixtures 6958094 6965162 7068 0.101579542
f) Land 170882671 171849100 966429 0.565551202
g) Office Equipments 5941006 6444098 503092 8.468128125
h) Plant & Machinery 36986549 40836541 3849992 10.40916794
i) Software 320050 599929 279879 87.44852367
j) Vehicles 6655080 5650676 -1004404 -15.0922904
Total 289647932 294239000 4591068 1.585051192

ii. Current Assets
Balance with banks in Fixed Dep
A/C 6641 6641 0 0
Cheque in Hand 9453 19184 9731 102.9408653
Loans & Advances control account 2772751 2757487 -15264 -0.550500207
Security Deposit 1139740 1167120 27380 2.402302279
Staff Advance 316346 231608 -84738 -26.78649327
Closing Stock 19367231 12717414 -6649817 -34.33540396
Loans & Advance (Asset) 1829246 1829246 0 0
Sundry Deptors 20321065 23225852 2904787 14.29446242
Cash-in- Hand 309581 286508 -23073 -7.452976765
Balance with banks in Current
Accounts 5893772 5882836 -10936 -0.185551799
Advance to Vendors 210717 0 -210717 -100
Auto Debit for Ins Renewal -115779 -404120 -288431 249.122034
45
Total 52060764 47719777 -4340987 -8.338308289

34170869 34195877
Total Asset 6 7 250081 0.073185

II. Liabilities
i. Capital Account
MSM Inter unit A/c – Delhi 303320472 300132894 -3187578 -1.050894448

ii. Current Liabilities
a) Other Statoury Dues Payable 912333 913911 1578 0.172963161
b) Duties & Taxes 2265272 2346859 81587 3.60164254
c) Provisions 6150965 5909306 -241659 -3.928798164
d) Sundry Creditors 12838882 13053521 214639 1.671788868
e) AMC 6139230 6105715 -33515 -0.545915367
Total 28306682 28329313 22631 0.079949321

iii. Profit & Loss A/c
Opening Balance 21212396 10081542 -11130854 -52.47334625
Current Period 10081542 13496570 3415028 33.87406411
Less: Transferred -21212369 -10081542 11130827 -52.4732858
Total 10081542 13496570 3415028 33.87406411

34170869 34195877
Total Liabilities 6 7 250081 0.073185
46
CHART 4.2.1 SHOWING THE COMPARISON OF INC/DEC % OF THE
YEAR OF 2018-2019
342000000
341950000
341900000
341850000
341800000
341750000
341700000
341650000
341600000
341550000
2018 2019
Total Liabilities Total Assets
INTERPRETATION:
The overall of the company was Rs. 34,17,08,696 with the year 2018 and Rs.
34,19,58,777 with the year 2019. When compared to the year of 2018 the Year 2019 was
increased, Rs. 2,50,081 i.e., 0.07% has increased.
47
YEAR OF 2019-2020
Inc%/Dec
%
I. Assets
i. Fixed Assets
a) Capital WIP 68026385 68997849 971464 1.428069417
b) Building 70688374 70719104 30730 0.043472495
c) Computers 46615820 4765399 -41850421 -89.77729234
e) Furniture & Fixtures 6965162 7088891 123729 1.776398022
f) Land 171849100 171849100 0 0
h) Plant & Machinery 40836541 4135899 -36700642 -89.87206336
i) Software 599929 662629 62700 10.45123673
j) Vehicles 5650676 56500676 50850000 899.8923315
Total 294239000 290318446 -3920554 -1.3324386

ii. Current Assets
Balance with banks in Fixed
Dep A/C 6641 6641 0 0
Cheque in Hand 19184 1368409 1349225 7033.074437
Loans & Advances control
account 2757487 2126660 -630827 -22.87688029
Security Deposite 1167120 1082285 -84835 -7.268747001
Staff Advance 231608 392630 161022 69.52350523
Closing Stock 12717414 16118592 3401178 26.74425791
Sundry Deptors 23225852 23576985 351133 1.511819674
Cash-in- Hand 286508 95273 -191235 -66.74682731
Accounts 5882836 1619434 -4263402 -72.47188261
Advance to Vendors 0 0 0 0
Auto Debit for Ins Renewal -404120 -399294 4826 -1.194199743
Total 47719777 47816862 97085 0.203448143
48

-
34195877 33813530 382346
Total Asset 7 8 9 -1.11811

II. Liabilities
i. Capital Account

b) Duties & Taxes 2346859 348998 -1997861 -85.12914496
c) Provisions 5909306 7018837 1109531 18.77599502
e) AMC 6105715 4441995 -1663720 -27.24856958
Total 28329313 26883119 -1446194 -5.10493848

Opening Balance 10081542 13496570 3415028 33.87406411
Current Period 13496570 15382539 1885969 13.97369109
Less: Transferred -10081542 -13496570 -3415028 33.87406411
Total 13496570 15382539 1885969 13.97369109

-
34195877 33813530 382346
Total Liabilities 7 8 9 -1.11811
49
YEAR OF 2019-2020
342000000
341000000
340000000
339000000
338000000
337000000
336000000
2019 2020
INTERPRETATION:
The overall of the company was Rs. 34,19,58,777with the year 2019 and Rs.
33,81,35,308 with the year 2020. When compared to the year of 2019 the year 2020 was
decreased, Rs. 38,23,469 i.e., 1.12% has decreased.
50
YEAR OF 2020-2021
Inc%/Dec
%
I. Assets
i. Fixed Assets
a) Capital WIP 68997849 70207201 1209352 1.752738698
b) Building 70719104 70753413 34309 0.048514472
c) Computers 4765399 483874 -4281525 -89.84609683
e) Furniture & Fixtures 7088891 7088891 0 0
f) Land 171849100 171849100 0 0
i) Software 662629 662629 0 0
j) Vehicles 56500676 5650676 -50850000 -89.9989232
Total 290318446 286519073 -3799373 -1.30869156

ii. Current Assets
A/C 6641 6641 0 0
Cheque in Hand 1368409 476552 -891857 -65.17473942
Loans & Advances control account 2126660 2700365 573705 26.9768087
Security Deposite 1082285 1082285 0 0
Staff Advance 392630 283777 -108853 -27.72406591
Closing Stock 16118592 13711501 -2407091 -14.93363068
Sundry Deptors 23576985 20048077 -3528908 -14.96759658
Cash-in- Hand 95273 168902 73629 77.2821261
Accounts 1619434 11127382 9507948 587.1154984
51
Auto Debit for Ins Renewal -399294 -402088 -2794 0.699735032
Total 47816862 51032641 3215779 6.725198738

33813530 33755171 -
Total Asset 8 4 583594 -0.172592

II. Liabilities
i. Capital Account
MSM Inter unit A/c – Delhi 295869650 301125501 5255851 1.776407617

a) Other Statoury Dues Payable 1163852 864533 -299319 -25.7179607
b) Duties & Taxes 348998 2626737 2277739 652.6510181
c) Provisions 7018837 6204998 -813839 -11.5950691
e) AMC 4441995 2796482 -1645513 -37.04445863
Total 26883119 27789839 906720 3.372822923

Opening Balance 13496570 15382538 1885968 13.97368368
Current Period 15382539 8636374 -6746165 -43.85599152
Less: Transferred -13496570 -15382538 -1885968 13.97368368
Total 15382539 8636374 -6746165 -43.85599152

33813530 33755171 -
52
YEAR OF 2020-2021
338200000
338100000
338000000
337900000
337800000
337700000
337600000
337500000
337400000
337300000
337200000
2020 2021
INTERPRETATION:
The overall of the company was Rs33,81,35,308 with the year 2020 and Rs.33,75,51,714
with the year 2021. When compared to the year of 2020 the Year 2021 was decreased, Rs.
5,83,594 i.e., 0.17% has decreased.
53
YEAR OF 2021-2022
Inc%/Dec
%
I. Assets
i. Fixed Assets
a) Capital WIP 70207201 71039788 832587 1.18589972
b) Building 70753413 70753413 0 0
c) Computers 483874 4848789 4364915 902.0767803
e) Furniture & Fixtures 7088891 7084291 -4600 -0.064890263
f) Land 171849100 171849100 0 0
g) Office Equipments 6455420 6042376 -413044 -6.3984063
i) Software 662629 662629 0 0
j) Vehicles 5650676 5326777 -323899 -5.732039848
Total 286519073 282657714 -3861359 -1.347679566

ii. Current Assets
Balance with banks in Fixed Dep A/C 6641 500000 493359 7428.986598
Cheque in Hand 476552 0 -476552 -100
Loans & Advances control account 2700365 8498011 5797646 214.6986056
Security Deposite 1082285 908900 -173385 -16.02027192
Staff Advance 283777 298107 14330 5.04973976
Closing Stock 13711501 15879449 2167948 15.81116466
Sundry Deptors 20048077 20505045 456968 2.279360759
Cash-in- Hand 168902 25785 -143117 -84.73375093
Accounts 11127382 3783569 -7343813 -65.99767133
54
Auto Debit for Ins Renewal -402088 261 402349 -100.0649112
Total 51032641 53009942 1977301 3.874580977

33755171 33566765 -
Total Asset 4 6 1884058 -0.558154

II. Liabilities
i. Capital Account

b) Duties & Taxes 2626737 5928743 3302006 125.7075223
c) Provisions 6204998 6580040 375042 6.044192117
d) Sundry Creditors 15297089 10950555 -4346534 -28.41412507
e) AMC 2796482 1143832 -1652650 -59.09746603
Total 27789839 25484839 -2305000 -8.294398539

Opening Balance 15382538 8636374 -6746164 -43.85598787
Current Period 8636374 14403396 5767022 66.77596408
Less: Transferred -15382538 -8636374 6746164 -43.85598787
Total 8636374 14403396 5767022 66.77596408

33755171 33566765 -
55
YEAR OF 2021-2022
Chart Title
338000000
337500000
337000000
336500000
336000000
335500000
335000000
334500000
2021 2022
Total Liabilities Total Assets Column1
INTERPRETATION:
The overall of the company was Rs. 33,75,51,714 with the year 2021 and
Rs.33,56,67,656 with the year 2022. When compared to the year of 2020 the Year 2021 was
decreased, Rs.18,84,058 i.e., 0.56% has decreased.
56
4.3 COMMON SIZE BALANCE SHEET ANALYSIS
TABLE 4.3.1
Percentag Percentag
Particulars 2018
e
2019
e
I. Assets
i. Fixed Assets
a) Capital WIP 62450877 18.27605728 68026385 19.89315367
b) Building 70381825 20.59702484 70688374 20.67160686
c) Computers 4836212 1.415302583 46615820 13.63199986
d) Depreciation Fund -75764432 -22.17222824 -81437085 -23.81488369
e) Furniture & Fixtures 6958094 2.036264831 6965162 2.036842587
f) Land 170882671 50.00828864 171849100 50.25433226
g) Office Equipments 5941006 1.738617152 6444098 1.884466326
h) Plant & Machinery 36986549 10.82399993 40836541 11.94194849
i) Software 320050 0.093661649 599929 0.175438983
j) Vehicles 6655080 1.947588715 5650676 1.652443622
Total 289647932 84.76457737 294239000 86.04516678

ii. Current Assets
Balance with banks in Fixed Dep A/C 6641 0.001943468 6641 0.001942047
Cheque in Hand 9453 0.002766391 19184 0.005610033
Loans & Advances control
account 2772751 0.811437061 2757487 0.806379946
Security Deposite 1139740 0.333541409 1167120 0.341304297
Staff Advance 316346 0.092577685 231608 0.067729801
Closing Stock 19367231 5.667760647 12717414 3.718990374
Loans & Advance (Asset) 1829246 0.535323222 1829246 0.53493173
Sundry Deptors 20321065 5.946897237 23225852 6.79200347
Cash-in- Hand 309581 0.090597928 286508 0.083784368
Accounts 5893772 1.724794267 5882836 1.720334846
Advance to Vendors 210717 0.061665683 0 0
57
Auto Debit for Ins Renewal -115779 -0.033882369 -404120 -0.118177987
Total 52060764 15.23542263 47719777 13.95483322

34170869 34195877
Total Asset 6 100 7 100

II. Liabilities
i. Capital Account
MSM Inter unit A/c - Delhi 303320472 88.76580419 300132894 87.76873535

a) Other Statoury Dues Payable 912333 0.266991449 913911 0.267257653
b) Duties & Taxes 2265272 0.662924891 2346859 0.686298805
c) Provisions 6150965 1.800061009 5909306 1.728075545
d) Sundry Creditors 12838882 3.75725937 13053521 3.817279122
e) AMC 6139230 1.796626797 6105715 1.785512
Total 28306682 8.283863516 28329313 8.284423418

Opening Balance 21212396 6.207742515 10081542 2.948174657
Current Period 10081542 2.950332291 13496570 3.94684123
Less: Transferred -21212369 -6.207734614 -10081542 -2.948174657
Total 10081542 2.950332291 13496570 3.94684123

34170869 34195877
Total Liabilities 6 100 7 100
58
TABLE 4.3.2
Percentag Percentag
Particulars 2019
e
2020
e
I. Assets
i. Fixed Assets
a) Capital WIP 68026385 19.89315367 68997849 20.40539611
b) Building 70688374 20.67160686 70719104 20.91443938
c) Computers 46615820 13.63199986 4765399 1.409317184
f) Land 171849100 50.25433226 171849100 50.82258372
i) Software 599929 0.175438983 662629 0.195965634
j) Vehicals 5650676 1.652443622 56500676 16.7094872
Total 294239000 86.04516678 290318446 85.85866046

ii. Current Assets
A/C 6641 0.001942047 6641 0.001964007
Cheque in Hand 19184 0.005610033 1368409 0.404692727
Loans & Advances control acoount 2757487 0.806379946 2126660 0.628937573
Staff Advance 231608 0.067729801 392630 0.116116238
Closing Stock 12717414 3.718990374 16118592 4.766905916
Loans & Advance ( Asset) 1829246 0.53493173 1829246 0.540980476
Sundry Deptors 23225852 6.79200347 23576985 6.972648062
Cash-in- Hand 286508 0.083784368 95273 0.028175999
Accounts 5882836 1.720334846 1619434 0.47893076
Total 47719777 13.95483322 47816862 14.14133954
59

34195877 33813530

II. Liabilities
i. Capital Account

b) Duties & Taxes 2346859 0.686298805 348998 0.103212528
c) Provisions 5909306 1.728075545 7018837 2.075748032
e) AMC 6105715 1.785512 4441995 1.313673815
Total 28329313 8.284423418 26883119 7.950402801

Opening Balance 10081542 2.948174657 13496570 3.991470184
Curret Period 13496570 3.94684123 15382539 4.549225897
Total 13496570 3.94684123 15382539 4.549225897

34195877 33813530
60
TABLE 4.3.3
Percentag Percentag
Particulars 2020
e
2021
e
I. Assets
i. Fixed Assets
a) Capital WIP 68997849 20.40539611 70207201 20.79894668
b) Building 70719104 20.91443938 70753413 20.96076247
c) Computers 4765399 1.409317184 483874 0.143348109
f) Land 171849100 50.82258372 171849100 50.91045101
i) Software 662629 0.195965634 662629 0.196304439
j) Vehicals 56500676 16.7094872 5650676 1.674017866
Total 290318446 85.85866 286519073 84.88153403

ii. Current Assets
Balance with banks in Fixed Dep A/C 6641 0.001964007 6641 0.001967402
Cheque in Hand 1368409 0.404692727 476552 0.14117896
Staff Advance 392630 0.116116238 283777 0.084069192
Closing Stock 16118592 4.766905916 13711501 4.062044549
Sundry Deptors 23576985 6.972648062 20048077 5.93926091
Cash-in- Hand 95273 0.028175999 168902 0.05003737
Accounts 1619434 0.47893076 11127382 3.296496963
Total 47816862 14.14134 51032641 15.11846597
61

33813530 33755171

II. Liabilities
i. Capital Account

b) Duties & Taxes 348998 0.103212528 2626737 0.778173208
c) Provisions 7018837 2.075748032 6204998 1.838236259
e) AMC 4441995 1.313673815 2796482 0.828460317
Total 26883119 7.9504028 27789839 8.232764891

Opening Balance 13496570 3.991470184 15382538 4.557090769
Curret Period 15382539 4.549225897 8636374 2.558533594
Total 15382539 4.5492259 8636374 2.558533594

33813530 33755171
62
TABLE 4.3.4
Percentag Percentag
Particulars 2021
e
2022
e
I. Assets
i. Fixed Assets
a) Capital WIP 70207201 20.79894668 71039788 21.16372749
b) Building 70753413 20.96076247 70753413 21.07841245
c) Computers 483874 0.143348109 4848789 1.444520767
f) Land 171849100 50.91045101 171849100 51.19620462
i) Software 662629 0.196304439 662629 0.19740627
j) Vehicals 5650676 1.674017866 5326777 1.58691995
Total 286519073 84.88153403 282657714 84.20761099

ii. Current Assets
A/C 6641 0.001967402 500000 0.14895686
Cheque in Hand 476552 0.14117896 0 0
Staff Advance 283777 0.084069192 298107 0.088810165
Closing Stock 13711501 4.062044549 15879449 4.730705719
Sundry Deptors 20048077 5.93926091 20505045 6.10873423
Cash-in- Hand 168902 0.05003737 25785 0.007681705
Accounts 11127382 3.296496963 3783569 1.127177115
Advance to Vendors 0 0 781569 0.232840128
Auto Debit for Ins Renewal -402088 -0.119118933 261 7.77555E-05
Total 51032641 15.11846597 53009942 15.79238901
63

33755171 33566765

II. Liabilities
i. Capital Account

b) Duties & Taxes 2626737 0.778173208 5928743 1.766253881
c) Provisions 6204998 1.838236259 6580040 1.960284193
e) AMC 2796482 0.828460317 1143832 0.340763246
Total 27789839 8.232764891 25484839 7.592283184

Opening Balance 15382538 4.557090769 8636374 2.572894304
Curret Period 8636374 2.558533594 14403396 4.290969279
Total 8636374 2.558533594 14403396 4.290969279

33755171 33566765
64
4.4. TREND ANALYSIS
The changes in financial statement items from a base year to following years are often expressed
as trend percentages.
CURRENT YEAR
TREND PERCENTAGE = --------------------------------- * 100
BASE YEAR
TABLE 4.4.1 SHOWING THE TREND PERCENTAGE OF TOTAL

INCOME
year total income trend %
2018 10081542 100
2019 13496570 133.87
2020 15382538 152.58
2021 8636374 85.66
142.86
2022 14403396
65
CHART 4.4.1 SHOWING THE TREND PERCENTAGE OF TOTAL
INCOME
180
160
140
120
100
80
60
40
20
0
2018 2019 2020 2021 2022
Percentage of Total Income
INTERPRETATION:
These trend percentages indicate a modest growth in the total income and accelerated
growth in 2019 - 2022.
66
TABLE 4.4.2 SHOWING THE TREND PERCENTAGE OF CURRENT
ASSET
year current asset trend %
2018 52060764 100
2019 47719777 91.66
2020 47816862 91.84
2021 51032641 98.02
2022 53009942 101.82
67
CHART 4.4.2 SHOWING THE TREND PERCENTAGE OF CURRENT
ASSET
104
102
100
98
96
94
92
90
88
86
2018 2019 2020 2021 2022
Percentage of Current Asset
INTERPRETATION:
These trend percentages indicate a fluctuation in the current asset and accelerated growth
in 2018 to2022.
68
TABLE 4.4.3 SHOWING THE TREND PERCENTAGE OF CURRENT
LIABILITIES
year current liabilities trend %
2018 28306682 100
2019 28329313 100.07
2020 26883119 94.97
2021 27789839 98.17
2022 25484839 90.03
69
CHART 4.4.3 SHOWING THE TREND PERCENTAGE OF CURRENT
LIABILITIES
102
100
98
96
94
92
90
88
86
84
2018 2019 2020 2021 2022
Percentage of Current Liabilities
INTERPRETATION:
These trend percentages indicate a fluctuation in the current liabilities and accelerated
growth in 2018 to2022.
70

Chapter I

Uploaded by

Copyright:

Available Formats

You might also like

Chapter I

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter I

Uploaded by

Copyright:

Available Formats

CHAPTER-I

1.2 STATEMENT OF THE PROBLEM

Analyzing financial performance is the process of evaluating the common parts of

1) The status of investment in the business

1.3 SCOPE OF THE STUDY

1.4 SCOPE OF THE STUDY

To evaluate the financial performance of MARUTI SERVICE MASTER JJ

1.5 INDUSTRIAL PROFILE

Maruti decided to join up with Sumitomo Corporation. a huge trading

The objectives of MUL

 Modernization of the Indian automobile industry.

 Production of fuel-efficient vehicles to conserve scarce resources

 Production of large number of motor vehicles, which was necessary for

To set up model workshops for Maruti .automobiles as a benchmark to

To achieve high standards of customer satisfaction by providing quality service with

 To engage, with respect to Maruti automobiles, in the business of:

 Service and repairs

 Purchase and sale of used (pre-owned) cars through true value

 Sales and spare parts

NEED FOR THE SERVICE OR TILE NEED FOR SERVICE MASTERS

NEW JOINT VENTURE

 Largest car manufacturer in India.

 Over 400 years old

MSM is controlled by a board of directors, consisting of seven people.

 Multi steroid building, including shop floors

 Basement and terrace parking.

 Unidirectional ramps to drive the cars up/down

 A car lift for immovable cars.

 Polyurethane painted shops floors

 Aesthetically glazed front elevation

 Mature Service Masters – CHENNAI (MSM-C)

MSM-C, as well as MSM-D (for Delhi), which is the I lead Office of

Mr. P. Bala Kumaran, as the work manager (Spares) He has long

Mr.B. Sridharan as a Deputy Manager (Spares) with the hands on Experience

Mr. M. Sekar, as the Asst. Manager (Service). He was an Instructor/Trainer in the

To be the first business automobile service, period.

METHODS TO ACHIEVE THE AIM

a) Good overall Knowledge of Maruti cars.

c) General awareness of automotive field.

d) Through Knowledge of own area of -operation.

e) Energetic and positive approach.

f) Pleasant and impeccable behavior.

g) Respect for the customers.

h) Love for customer cars, Maruti cars.

I) Empathy for the customers

m) Trust in MSM as its System.

r) Altruism (Unselfishness), as part of personality.

s) Duty before Itself

t) Friendly disposition. The longest word in English is "Smiles".

x) Helping colleagues in distress.

y) Expanding the menial horizon to encompass the whole of MSM.

 Silent generator as a standby for HT power.

 Water and effluent treatment plants.

 Recycling of water used water, to minimize wastage.

 IM treatment plant for drinking water.

 Energy saving wind ventilators.

 Rain water harvesting.