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Jobin Joy
Jobin Joy
PROJECT REPORT
ON
SUBMITTED TO
BY
Jobin Joy
Batch No 2022-24
IN PARTIAL FULFILLMENT OF
MONTH, 2023
DECLARATION
I, Ms. Jobin Joy hereby declare that this project report is the record of authentic work carried out
by me during the period from 08 May 2023 to 10 July 2023 and has not been submitted to any other
University or Institute for the award of any degree / diploma etc.
Signature
Jobin Joy
Date:
Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai
This is to certify that the project entitled ‘A STUDY ON FINANCIAL RATIO ANALYSIS
OF BAJAJ FINSERV’ submitted by Mr. Jobin Joy of Indira Institute of Business
Management in partial fulfillment for the award of Master of Management Studies of
Mumbai University is his original work and does not form any part of the projects undertaken
previously.
This project report is the record of authentic work carried out by his during the period
from 08 May 2023 to 10 July 2023.
Date:
Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai
ACKNOWLEDGEMENT
The project is a golden opportunity to me for learning and self- development. I feel very
lucky and blessed to have talented and wonderful people who lead me through in the
completion of this project.
I express my deepest thanks to the Director of Indira Institute of Business Management, Dr.
Susen Varghese.
My special thanks to my mentor Prof. Nikhil Shirsat for his valuable time and guidance. He
took time from busy schedule and guiding me to carry out my summer internship project at
My Sharekhan Ltd.
A humble thanks to all other faculties for helping me whenever I need. I also feel delighted to
express my thanks to library staff and non-teaching staffs who helped me to complete my
project on time.
My gratitude to my friends and family for motivating and encouraging me through the
journey. I express my heartfelt acknowledgement for the guidance and support from them.
Executive summary
Financial ratios are widely used for modelling purposes both by practitioners and
researchers. The firm involves many interested parties, like the owners, management,
personnel, customers, suppliers, competitors, regulatory agencies, and academics, each
having their views in applying financial statement analysis in their evaluations. Practitioners
use financial ratios, for instance, to forecast the future success of companies, while the
researchers' main interest has been to develop models exploiting these ratios. Many distinct
areas of research involving financial ratios can be discerned. Historically one can observe
several major themes in the financial analysis literature. There is overlapping in the
observable themes, and they do not necessarily coincide with what theoretically might be the
best founded areas.
Financial Management is the specific area of finance dealing with the financial
decision corporations make, and the tools and analysis used to make the decisions. The
discipline as a whole may be divided between long-term and short-term decisions and
techniques. Both share the same goal of enhancing firm value by ensuring that return on
capital exceeds cost of capital, without taking excessive financial risks.
After preparation of the financial statements, one may be interested in knowing the
position of an enterprise from different points of view. This can be done by analyzing the
financial statement with the help of different tools of analysis such as ratio analysis, funds
flow analysis, cash flow analysis, comparative statement analysis, etc. Here I have done
financial analysis by ratios. In this process, a meaningful relationship is established between
two or more accounting figures for comparison.
Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai
Table of Contents
2 PROFILE OF THE
COMPANY
2.1 History and general
2.2 Company Profile
information
2.3 Competitors
2.4 Swot Analysis
3 PROCESS AND
WORKFLOW
3.1 Research Methodology
3.2 Types of data
3.3 Process and workflow details
of the organization under
study
4 FINDINGS
5 RECOMMENDATIONS
6 CONCLUSION
7 BIBLIOGRAPHY
1.1 Relevance of the project
The relevance of a project on financial planning and investments in share
market in India, as a part of the MMS (Master of Management Studies)
curriculum at the University of Mumbai, holds significant importance for
several reasons.
Practical Application of Knowledge
Understanding Personal Finance
Risk Management and Portfolio Diversification
Knowledge of Regulatory Framework
RATIO ANALYSIS
The term “Ratio” refers to the numerical and quantitative relationship between two
items or variables. This relationship can be exposed as
• Percentages
• Fractions
• Proportion of numbers
Ratio analysis is defined as the systematic use of the ratio to interpret the financial
statements. Hence the strengths and weaknesses of a firm, as well as its historical
performance and current financial condition can be determined. Ratio reflects a quantitative
relationship helps to form a quantitative judgment.
The calculation of ratios may not be a difficult task but their useis not easy. Following
guidelines or factors may be kept in mind whileinterpreting various ratios is
1. The study has great significance and provides benefits to various parties whom
directly or indirectly interact with the company.
2. It is beneficial to management of the company by providing crystal clear picture
regarding important aspects like liquidity, leverage, activity and profitability.
3. The study is also beneficial to employees and offers motivation by showing how
actively they are contributing for company growth.
4. The investors who are interested in investing in the company’s shares will also get
benefited by going through the study and can easily take a decision whether to
invest or not to invest in the company’s shares.
5. To know whether the company is growing or incurring losses or it is stagnant in its
performance.
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can help evaluate its operational efficiency, profitability, liquidity,
solvency, and overall performance.
2. Investment Decision-Making: Investors and potential investors can
use the findings to make informed decisions about buying, selling, or
holding Bajaj Finserv's stocks or bonds. Ratios can provide insights into
the company's growth prospects and its ability to generate returns for
shareholders.
3. Comparative Analysis: Comparing Bajaj Finserv's financial ratios with
its competitors or industry averages can help in understanding its
relative position in the market and identifying its competitive strengths
and weaknesses.
4. Risk Assessment: Ratio analysis assists in identifying risks associated
with the company's financial structure. For instance, high debt ratios
could signify potential financial risk, while strong liquidity ratios
indicate the company’s ability to meet short-term obligations.
1. The study provides an insight into the financial, personnel, marketing and other
aspects of Bajaj Finserv. Every study will be bound with certain limitations.
2. The study is done only on the Balance sheet and profit and Loss A/c.
3. One of the factors of the study was lack of availability of sample information. Most
of the information has been kept confidential and as such as not assed as art of
policy of company.
4. Time is an important limitation. The whole study was conducted in a period of 60
days, which is not sufficient to carry out proper interpretation and analysis.
5. Study is based on information provided by the company.
CHAPTER 2
PROFILE OF THE COMPANY
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2.1 History and general information
2.3 Competitors
2.4 Swot Analysis
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CHAPTER 3
Research Design
Descriptive research is used in this study because it will ensure the minimization of
bias and maximization of reliability of data collected. The researcher had to use fact and
information already available through financial statements of earlier years and analyze
these to make critical evaluation of the available material. Hence by making the type of the
research conducted to be both Descriptive and Analytical in nature.
From the study, the type of data to be collected and the procedure to be used for this
purpose were decided.
The required data for the study are basically secondary in nature and the data are
collected from the audited reports of the company.
Primary Data
The primary data was collected mainly with the interactions and discussions with
the company executives.
Secondary data
Most of the calculations are made on financial statements of the company and the
company provided financial statement of 5 years.
Some of the information regarding to the theoretical aspects were collected by referring
standards texts and through internet.
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3.3 Process and workflow details of the organization under study
5. FINDINGS
1. Current ratio of company in year 2015-16 is 16.73, in year 2016-17 is 7.57, in
year2017-18 is 46.2 , year 2018-19 is 30.82 and in the last year 2019-20 is 98.41.
2. Quick Liquid/Acid Test Ratio of company in year 2015-6 is 16.73, in year 2016-17
is 7.57, in year 2017-18 is 46.2, year 2018-19 is 30.82 and in the last year 2019-20
is 98.41.
3. Debt-Equity Ratio of company in year 2014-15 is 0.4, in year 2015-16 is 0.28, in
year 0.21, year 0.16 and in the last year 2018-19 is 0.14.
4. Net profit margin is high in the last year 2019-20, when compared to remaining
years.
5. Capital employed is greater or higher in the year of 2019-20, when compared to
remaining years.
6. Company can have an easy access to cash to meet financial obligations in the year
20019-20
7. Inventory turnover ratio of the company is not satisfactory because the ratio is going
on decreasing
8. Fixed asset turnover is too high in the year 2019-20, when compared to remaining
years
9. Total asset turnover ratio is high i.e.0.46 (in the year of 2019-20),
10. Gross profit and net profits are increased during the period of study, which indicates
that’s efficient management in manufacturing and trading operating.
11. Current Liabilities were increased compared to base year i.e. 2014.
12. Current ratio of Bajaj Finserv is comparatively lower than other companies and also
the Idea ratio of 2:1.
13. Generally a quick ratio of 1:1 is considered satisfactory as a firm. The ratio of Bajaj
Finserv are comparatively better than other companies.
14. When sales of the company increases the company production process also
increases. It helps to increase the growth of the company.
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6. RECOMMENDATIONS
1) Company check only financial, technical and commercial feasibility of the project
and it should not consider sensitivity analysis and social cost benefit analysis of the
project.
2) Company should consider this because these are also important from the point of
view of risk and economy growth. Company should be caution about the
availability of security and ensure honesty of both borrower and guarantor so as to
avoid the account becoming the loss assets.
3) Institute executive should visit examine & interact on regular basis.
4) They should pay proper attention towards checking of various components of study
material & faculty potential before end user delivery. Otherwise it tends towards
defame of brand name in comparison to rivals.
5) Need to expand counselor services as the consumer base of Bajaj Finserv is
increasing with tremendously fast pace.
6) Proper attention should be paid for advertisement planning otherwise it may lead to
problem for institute.
7) Company should tie up with some event management company to organize various
promotional activities for the increment of student.
8) From the study it is found that there is lack of periodic review & analysis which is
leading to inefficient utilization of resources &its leads to loss when its compare to
previous years apart from current year. So the firm should conduct quarterly
analysis. Hence the problems can be amended in time.
9) After the analysis of Financial Statements, the company status is better, because the
Net working capital of the company is doubled from the last year’s position.
10) The company is utilizing the fixed assets, which majorly help to the growth of the
organization. The company should maintain that perfectly.
11) The company fixed deposits are raised from the inception, it gives the other income
i.e., Interest on fixed deposits.
Higher demand for seating system can be expected in the next decade, once
investments in ports and port development have started to reach fruition. As India is
hopeful of competing with other established shipbuilding nations, the multinationals
are likely to find plentiful opportunity in India, given the compliance requirements
imposed by effects of international legislation on seating systems.
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Bajaj Finserv. So from this researcher can conclude that there is a better
opportunities for investors to invest in this company.
BIBLIOGRAPHY
Text Books
Website
www.haritaseating.com
www.acma.in
www.google.com
www.readyratios.com
www.crisilresearcher.com
www.moneycontrol.com
www.investoped
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