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A project on final year BBA Finance specialisation

Financial Management (Rashtrasant Tukadoji Maharaj Nagpur University)

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PROJECT REPORT
ON
“A STUDY ON FINANCIAL ANALYSIS OF BAJAJ
AUTO LTD. ’’

Submitted to
RashtrasantTukadojiMaharaj
Nagpur University, Nagpur
In Partial Fulfilment of the requirement of the
“Bachelor of Business Administration”

Submitted by
SHRUTIKA BANSOD

Guidance by
Prof. Chaitanya A. Sakhare

Dr.Ambedkar Institute of Management Studies and

Research, Deeksha Bhoomi, Nagpur-440012
2021-2022
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CERTIFICATE

This is to certify that Shrutika Bansod as satisfactorily completed the project

work entitled “A STUDY ON FINANCIAL ANALYSIS OF BAJAJ AUTO
LTD.” in not less than one academic session.

This also certify that this project work is the result of the candidate’s own work and
is of sufficiently high standard to warrant its presentation for the BBA program.

To the best of my knowledge this project or its part has not been submitted to this
university or any other university for any Degree/Diploma.

Prof. Chaitnya A. Sakhare

Internal Examiner External Examiner

Place: Nagpur

Date: Director

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ACKNOWLEDGEMENT

“Words have never expressed human sentiments. This is only an attempt to express
my deep gratitude which comes from my heart.”

It is a great pleasure for me to express my deep feeling of gratitude to my respected

guide Prof. Chaitnya A. Sakhare (Assistant Professor, DAIMSR) for his great
encouragement and constant support which provided desired moral and confidence
to carry on my work.

I am grateful to the Dr. Sudhir Fulzele, Director, Dr. Ambedkar Institute of

Management Studies & Research, Nagpur for making all facilities available for my
work.

I am grateful to the Dr. Nirzar Kulkarni, Associate Director, Dr. Ambedkar

Institute of Management Studies & Research, Nagpur for making all facilities
available for my work.

I am grateful to my parents for their lovable support. Last but not least I am
thankful to my friends and other faculty members for their direct and indirect help
for completion ofthis work.

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DECLARATION

I, Shrutika Bansod hereby declare that the project entitled “A study on

financial analysis of bajaj auto ltd.” is the outcome of my own research
work based on personal study during academic session 2021-2022 and
has not been submitted previously for award of any degree or diploma to
this university or any other university.

Shrutika Bansod

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CHAPTERAISATION

Chapter Particulars Page

no. Number

1. Executive Summary 6-7

2. Introduction 8-17

3. Company profile 18-28

4. Research Methodology and data collection 29-41

5. Data Analysis and Interpretation 42-52

6. Findings and conclusion 53-55

7. Limitations and suggestions 56-58

8. Bibliography 59-60

9. Annexure 61-66

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CHAPTER - 1

EXECUTIVE SUMMARY

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The Bajaj Group was formed in the initial days of India's independence. It was founded by
Jamnalal Bajaj who was an ardent follower of Mahatma Gandhi. In 1942, Jamnalal Bajaj was
succeeded by his eldest son, Kamalnayan. In 1947, Kamalnayan consolidated and diversified the
Bajaj Auto Group by bringing into cement, Ayurvedic medicines, electrical equipment, and
appliances, as well as scooters.

M/s Bachraj Trading Limited was formed on November 29, 1945, as a forerunner to Bajaj Auto.
It began selling imported two and three-wheeler vehicles in 1948 and obtained the licence to
manufacturing from the government 11 years later. The next year, in 1960, Bajaj Auto became a
public limited company.

In 1960, at a small age of 22, Rahul Bajaj became the Indian licensee for the make and thereafter,
Bajaj Auto began producing its first two-wheelers starting from the next year. He became the
group's Chief Executive Officer in 1968 after completing his MBA from Harvard.

The annual turnover of the company was Rs. 72 million at that time. By 1970, the company had
produced 100,000 vehicles. The oil crisis further drove the market in favour of two-wheelers,
much cheaper to buy and much more fuel-efficient.

The three-wheeler goods carrier and Bajaj Chetak were introduced in the early part of the 1970s
while the Bajaj Super and three-wheeled, rear-engine autorickshaw came in 1976 and 1977.
Bajaj Auto produced 1 million vehicles in the 1976-77 fiscal year alone.

This financial project we have prepared to know the practical implication and how it is applied in
real life situation. For this financial project we have taken 5 years balance sheet and 5 years
Profit and loss A/c of Bajaj auto Ltd. for the analysis.

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CHAPTER - 2

INTRODUCTION

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FINANCIAL STATEMENT
Financial Statements or Financial Report is a formal record of the financial activities and
position of a business, person, or other entity.

Relevant financial information is presented in a structured manner and in a form easy to

understand. They typically include basic financial statements, accompanied by a Management
Discussion and Analysis.

MEANING OF FINANCIAL STATEMENTS

Financial Statements for Businesses usually include Income Statements, Balance Sheets,
Statements of Retained Earnings and Cash flows Financial statements are often audited by
government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing or
investing purposes.Financial analysts rely on data to analyse the performance of, and make
predictions about, the future direction of a company's stock price. One of the most important
resources of reliable and audited financial data is the annual report, which contains the firm's
financial statements.

TYPES OF FINANCIAL STATEMENTS -

Balance Sheet

The balance sheet provides an overview of assets, liabilities and stockholders' equity as a
snapshot in time. The date at the top of the balance sheet tells you when the snapshot was taken,
which is generally the end of the fiscal year. The balance sheet equation is assets equals liabilities
plus stockholders' equity, because assets are paid for with either liabilities, such asdebt, or
stockholders' equity, such as retained earnings and additional paid-in capital. Assets are listed on
the balance sheet in order of liquidity.

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Income Statement

Unlike the balance sheet, the income statement covers a range of time, which is a year for annual
financial statements and a quarter for quarterly financial statements. The income statement
provides an overview of revenues, expenses, net income and earnings per share. It usually
provides two to three years of data for comparison.

Cash Flow Statement

The cash flow statement merges the balance sheet and the income statement. Due to accounting
convention, net income can fall out of alignment with cash flow. The cash flow statement
reconciles the income statement with the balance sheet in three major business activities. These
activities include operating, investing and financing activities. Operating activities include cash
flows made from regular business operations. Investing activities include cash flows due to the
buying and selling of assets such as real estate and equipment. Financing activities include cash
flows from debt and equity.

WHY FINANCIAL STATEMENTS?

"The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an enterprise that is useful to a wide range of
users in making economic decisions." Financial statements should be understandable, relevant,
reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly
related to an organization's financial position.

Financial statements are intended to be understandable by readers who have "a reasonable
knowledge of business and economic activities and accounting and who are willing to study the
information diligently."

Financial statements may be used by users for different purposes:

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 Owners and Managers require financial statements to make important business decisions
that affect its continued operations. Financial analysis is then performed on these
statements to provide management with a more detailed understanding of the figures.
These statements are also used as part of management's annual report to the stockholders.

 Employees also need these reports in making collective bargaining agreements (CBA)
with the management, in the case of labour unions or for individuals in discussing their
compensation, promotion and rankings.

 Prospective Investors make use of financial statements to assess the viability of investing
in a business. Financial analyses are often used by investors and are prepared by
professionals (financial analysts), thus providing them with the basis for making
investment decisions.

FEATURES OF FINANCIAL STATEMENTS

 The Financial Statements should be relevant for the purpose for which they are
prepared. Unnecessary and confusing disclosures should be avoided and all those that are
relevant and material should be reported to the public.

 They should convey full and accurate information about the performance.
Position, progress and prospects of an enterprise. It is also important that those who
prepare andpresent the financial statements should not allow their personal prejudices to
distort the facts.

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 They should be easily comparable with previous statements or with those of

similar concerns or industry. Comparability increases the utility of financial statements.

 They should be prepared in a classified form so that a better and meaningful analysis
could be made.

 The financial statements must have general acceptability and understanding. This
can be achieved only by applying certain "generally accepted accounting principles" in
their preparation.

personalThe financial statements should not be affected by inconsistencies arising out of

judgment and procedural choices exercised by the accountant.

 Financial Statements should comply with the legal requirements if any, as regards
form, contents, and disclosures and methods. In India, companies are required to present
their financial statements according to the Companies Act, 1956.

Importance of Financial Statements

1. Importance to Management:

Increase in size and complexities of factors affecting the business operations necessitate a
scientific and analytical approach in the management of modern business enterprises.The
management team requires up to date, accurate and systematic financial information for the
purposes. Financial statements help the management to understand the position, progress and
prospects of business vies-a-versa the industry.

By providing the management with the causes of business results, they enable them to formulate
appropriate policies and courses of action for the future. The management communicates only

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Through these financial statements, their performance to various parties and justify their
activities and thereby their existence.

2. Importance to the Shareholders:

Management is separated from ownership in the case of companies. Shareholders cannot,

directly, take part in the day-to-day activities of business. However, the results of these activities
should be reported to shareholders at the annual general body meeting in the form of financial
statements.

These statements enable the shareholders to know about the efficiency and effectiveness of the
management and also the earning capacity and financial strength the company.

y analysing the financial statements, the prospective shareholders could ascertain e profit earning
capacity, present position and future prospects of the company and decide about making their
investments in this company.

3. Importance to Lenders/Creditors:

The financial statements serve as a useful guide for the present and future suppliers and probable
lenders of a company.

It is through a critical examination of the financial statements that these groups can come to
know about the liquidity, profitability and long-term solvency position of a company. This would
help them to decide about their future course of action.

4. Importance to Labour:

Workers are entitled to bonus depending upon the size of profit as disclosed by audited profit and
loss account. Thus, P & L a/c becomes greatly important to the workers. In wages negotiations
also, the size of profits and profitability achieved are greatly relevant.

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5. Importance to the Public:

Business is a social entity. Various groups of society, though directly not connected with
business, are interested in knowing the position, progress and prospects of a business enterprise.

They are financial analysts, lawyers, trade associations, trade unions, financial press, research
scholars and teachers, etc. It is only through these published financial statements these people
can analyse, judge and comment upon business enterprise

Financial Statement Analysis

Financial Statement Analysis is the process of reviewing and evaluating a company's financial
statements (such as the balance sheet or profit and loss statement), thereby gaining an
understanding of the financial health of the company and enabling more effective decision
making. Financial statements record financial data; however, this information must be evaluated
through financial statement analysis to become more useful to investors, shareholders, managers
and other interested parties. Financial statement analysis is an evaluative method of determining
the past, current and projected performance of a company. Several techniques are commonly
used as part of financial statement analysisincluding horizontal analysis, which compares two or
more years of financial data in both dollar and percentage form; vertical analysis, where each
category of accounts on the balance sheet is shown as a percentage of the total account; and ratio
analysis, which calculates statistical relationships between data.

Financial Statement Analysis Allows Analysts to identify trends by comparing ratios across
multiple time periods and statement types. These statements allow analysts to measure liquidity,
profitability, company-wide efficiency and cash flow. There are three main types of financial
statements: the balance sheet, income statement and cash flow statement. The balance sheet is a
snapshot in time of the company's assets, liabilities and shareholders' equity. Analysts use the
balance sheet to analyse trends in assets and debts. The cash flow statement provides an
overview of the company's cash flows from operating activities, investing activities and
financing activities.

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Advantages of Financial Statement Analysis

The different advantages of financial statement analysis are listed below:

 The most important benefit if financial statement analysis is that it provides an idea to the
investors about deciding on investing their funds in a particular company.
 Another advantage of financial statement analysis is that regulatory authorities like IASB
can ensure the company following the required accounting standards.
 Financial statement analysis is helpful to the government agencies in analysing the
taxation owed to the firm.
 Above all, the company is able to analyse its own performance over a specific time
period.

Purpose of Financial Statement Analysis

The general purpose of the financial statements is to provide information about the results of
operations, financial position, and cash flows of an organization. Thisinformation is used by the
readers of financial statements to make decisions regarding the allocation of resources.

The purpose of the balance sheet is to inform the reader about the current status of the business
as of the date listed on the balance sheet. This information is used to estimate the liquidity,
funding, and debt position of an entity, and is the basis for a number of liquidity ratios.

Finally, the purpose of the statement of cash flows is to show the nature of cash receipts and
disbursements, by a variety of categories. This information is of considerable use, since cash
flows do not always match the revenues and expenses shown in the income statement.

As a group, the entire set of financial statements can also be assigned several additional
purposes, which are:

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Credit decisions- Lenders use the entire set of information in the financials to determine
whether they should extend credit to a business, or restrict the amount of credit already extended.

Investment decisions-Investors use the information to decide whether to invest, and the
price per share at which they want to invest. An acquirer uses the information to develop a price
at which to offer to buy a business.

Procedure of Financial Statement Analysis

A common procedure is followed for financial statement analysis. Such procedure is briefly
explained below.

1.Objective of Analysis:The objective of analysis is differing from one interested party to

another. In other words, the user of financial statement analysis fixes or determines the objectives
of analysis.

2.Decide the Extent of Analysis:The extent of analysis is also decided by the interested
party. For example: Shareholder considers long term solvency of the business concern. The
debenture holder considers short term solvency of the business concern.

3.Scope of Analysis:It means that an analyst should determine the depth of the analysis. This
can be decided depending upon the nature of problem.

4. Going Through the Financial Statements:The analyst should go through everyitem

of the financial statements. If not so, the hidden facts cannot be find out through analysis.

5. Understanding:The analyst should go through financial documents and other

documents for clearly understand the problem.

6. Classification:After understanding the problem, the collected relevant data are to be

classified according to the needs of the problem to find out a correct solution.

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7. Analysis:After making above preparation, actual analysis is done. Any one of the tools
or techniques of financial statement analysis can be used.

8. Interpretation and Conclusion:The interpretation is made and the inferences are

drawn only on the basis of analysis.

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CHAPTER- 3

COMPANY PROFILE

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BAJAJ AUTO LTD.

Bajaj Auto Limited is an Indian multinational two wheeler & three wheeler manufacturing
company based in the city of Pune, India. It manufactures motorcycles, scooters and auto
rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in
Rajasthan in the 1940s. The company has plants in Chakan, Waluj and Pantnagar. The oldest
plant at Akurdi in Pune houses the R&D centre 'Ahead'.Bajaj Auto is the world's third-largest
manufacturer of motorcycles and the second-largest in India. It is the world's largest three-
wheeler manufacturer. The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416.

History of Bajaj Auto Limited

Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The company
generally has lagged behind its Japanese rivals in technology, but has invested heavily to catch
up. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the world.
Although publicly owned, the company has been controlled by the Bajaj family since its
founding.

Origins

The Bajaj Group was formed in the first days of India's independence from Britain. Its founder,
Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as a
fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for the
common good I always had this merchant prince principally in mind,' said the Mahatma after
Jamnalal's death.

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Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan,
however, was preoccupied with India's struggle for independence. After this was achieved, in
1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedic
medicines, electrical equipment, and appliances, as well as scooters.

The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading
Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a
manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto
became a public limited company.

Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960, at
the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its first
two-wheelers the next year.

Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA at
Harvard. He lived next to the factory in Pune, an industrial city three hours' drive from Bombay.
The company had an annual turnover of Rs 72 million at the time. By 1970, the company had
produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers,
much cheaper to buy and many times more fuel-efficient.

A number of new models were introduced in the 1970s; including the three-wheeler goods carrier
and Bajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear engine
Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal
year alone.

The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio,
maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales
in the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports
plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82,
although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs
63 million.

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New Competition in the 1980s

Japanese and Italian scooter companies began entering the Indian market in the early 1980s.
Although some boasted superior technology and flashier brands, Bajaj Auto had built up several
advantages in the previous decades. Its customers liked the durability of the product and the
ready availability of maintenance; the company's distributors permeated the country.

The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was immediately
successful, and the company aimed to be able to make 60,000 of them a year by 1985. Capacity
was the most important constraint for the Indian motorcycle industry. Although the country's
total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival
Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for one of its new
mini-motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad
commenced in January 1984.

The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj KB100
motorcycles. The company was making 500,000 vehicles a year at this point.

Although Rahul Bajaj credited much of his company's success with its focus on one type of
product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy control of
Ahsok Leyland failed.

The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later.
About this time, the Indian government was initiating a program of market liberalization, doing
away with the old 'license raj' system, which limited the amount of investment any one company
could make in a particular industry.

A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the
Financial Times that his company was too large to be considered a potential collaborator by
Japanese firms. It was hoping to increase its exports, which then amounted to just five percent of
sales. The company began by shipping a few thousand vehicles a year to neighbouring Sri Lanka
and Bangladesh, but soon was reaching markets in Europe, Latin America, Africa, and West
Asia. Its domestic market share, barely less than 50 percent, was slowly slipping.

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By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several of
Bajaj's rivals were looking at this market as well, which was being rapidly liberalized by the
Indian government.

Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the
world's fourth largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and
Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed
development agreements with two Japanese engineering firms, Kubota and Tokyo R & D. Bajaj's
most popular models cost about Rs 20,000. 'You just can't beat a Bajaj,' stated the company's
marketing slogan.

The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The next
year saw the debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend, India's first four-
stroke scooter. The Caliber sold 100,000 units in its first 12 months. Bajaj was planning to build
its third plant at a cost of Rs 4 billion ($111.6 million) to produce two new models, one to be
developed in collaboration with Cagiva of Italy.

New Tools in the 1990s

Still, intense competition was beginning to hurt sales at home and abroad during the calendar
year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals' higher-end
offerings, particularly in high-powered motorcycles, since poorer consumers were withstanding
the worst of the recession. The company invested in its new Pune plant in order to introduce new
models more quickly. The company spent Rs 7.5 billion ($185 million) on advanced, computer-
controlled machine tools. It would need new models to comply with the more stringent emissions
standards slated for 2000. Bajaj began installing Rs 800 catalytic converters to its two-stroke
scooter models beginning in 1999.

Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj Auto's profits
increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj was able to boast,
'My competitors are doing well, but my net profit is still more than the next four biggest

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companies combined.' Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the
fall of 1998, Honda Motor of Japan announced that it was withdrawing from this joint venture.

Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from its
foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva
(scooters). 'Honda's annual spend on R & D is more than my turnover,' noted Ruhal Bajaj. His
son, Sangiv Bajaj, was working to improve the company's supply chain management. A
marketing executive was lured from TVS Suzuki to help push the new cycles.

Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999.
These, and a surge in consumer confidence, propelled Bajaj to sales records, and it began to
regain market share in the fast-growing motorcycle segment. Sales of three-wheelers fell as some
states, citing traffic and pollution concerns, limited the number of permits issued for them.

In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The
Italian firm had exited a relationship with entrepreneur Deepak Singhania and was looking to
renter the Indian market, possibly through acquisition. Piaggio itself had been mostly bought out
by a German investment bank, Deutsche Morgan Grenfell (DMG), which was looking to sell
some shares after turning the company around. Bajaj attached several conditions to his
purchaseof a minority share, including a seat on the board and an exclusive Piaggio
distributorship in India.

In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian
government was planning to sell its 50 percent stake in the automaker, a joint venture with
Suzuki of Japan. Bajaj had been approached by several foreign car manufacturers in the past,
including Chrysler (subsequently DaimlerChrysler) in the mid-1990s.

Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month strike at its
Waluj factory) to 17,000 in 1999-2000. The company planned to lay off another 2,000 workers in
the short term and another 3,000 in the following three to four years.

In 2007, Bajaj Auto, through its Dutch subsidiary Bajaj Auto International Holding BV,
purchased a 14.5% stake of Austrian rival KTM, gradually increasing its stake to a 48% non-

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controlling share by 2020. In December 2020, Bajaj started discussions on swapping its stake
from KTM to KTM's controlling shareholder Pierer Mobility, a subsidiary of Pierer Industries.

On 26 May 2008, Bajaj Auto Limited was split off into three corporate entities — Bajaj Finserv
Limited (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL).

In 2017, Bajaj Auto and Triumph Motorcycles Ltd teamed up to build mid-capacity motorcycles.

In 2017, Bajaj and Kawasaki ended a sales and services partnership in India for the sale and
after-sales service of Kawasaki motorcycles, which had been established in 2009. The
partnership's dealerships were later converted into KTM ones. Bajaj and Kawasaki continue with
their relationship in overseas markets.

On 26 November 2019, Bajaj Auto invested about ₹57 crore ($8 million) in bicycle and electric
scooter rental start upYulu.[19] In this deal, Bajaj would also manufacture customised electric
scooters for Yulu.

Products
Bajaj is the first Indian two-wheeler manufacturer to deliver 4-stroke commuter motorcycles
with sporty performance for the Indian market. Bajaj achieved this with the 150cc and 180cc
Pulsar.

Motorcycles produced by Bajaj include the CT 100 Platina, Discover, Pulsar,

Avenger,andDominar. In FY 2012–13, it sold approximately 37.6 lakh (3.76 million)
motorcycles which accounted for 31% of the market share in India. Of these, approximately 24.6
lakh (2.46 million) motorcycles (66%) were sold in India, and the remaining 34% were exported.

Auto rickshaw (three wheeler)

Bajaj is the world's largest manufacturer of auto rickshaws and accounts for almost 84% of
India's three-wheeler exports. During the FY 2012–13, it sold approx. 4,80,000 three-wheelers
which was 57% of the total market share in India. Out of these 4,80,000 three-wheelers, 47%

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were sold in the country and 53% were exported. In Indonesia, Bajaj three-wheelers are
described as "iconic" and "ubiquitous" to the point that the word bajaj (pronounced bajay) is used
to refer to auto rickshaws of any kind.

Low cost cars

In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor to develop a
US$2,500 car, aiming at a fuel efficiency of 30 kilometres per litre (3.3 L/100 km), or twice an
average small car, and carbon dioxide emissions of 100 g/km.

On 3 January 2012, Bajaj auto unveiled the Bajaj Qute (formerly Bajaj RE60), a mini car for
intra-city urban transportation, which is legally classified as a quadricycle. The target customer
group was Bajaj's three-wheeler customers. According to its Managing Director Rajiv Bajaj, the
RE60 powered by a new 200 cc rear mounted petrol engine will have a top speed of 70
kilometres per hour (43 mph), a mileage of 35 kilometres per litre (99
mpg-imp; 82 mpg-US) and carbon dioxide emissions of 60 g/km.

Electric scooters

Bajaj launched its first electric scooter, the Chetak, in India in January 2020. In December 2021,
Bajaj announced an investment of 300 crore to build an electric vehicle
production facility in Pune. According to the company, the plant would be able to produce
5,00,000 electric vehicles (EVs) each year, catering to both domestic and international markets.

Achievement:

1945– On November 29 Bajaj Auto came into existence as Bachraj Trading Corporation Private
Limited.

1948– The company commenced sales in India by importing two– and three–wheelers.

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1959– Bajaj Auto obtained the licence from the Government of India to manufacture two– and
three–wheelers.

1960– The company became a public limited company and conducted Bhoomi Poojan of the
Akurdi Plant.

1970– Bajaj Auto rolled out its 100,000th vehicle.

1971– The company introduced its three–wheeler goods carrier.

1972– The company introduced Bajaj Chetak.

1975– Bajaj Auto & Maharashtra Scooters entered into a joint venture.

1976– The company introduced Bajaj Super.

1977– Bajaj Auto introduced rear engine autorickshaw and achieved production and sales of
100,000 vehicles in a single financial year.

1981– Bajaj Auto launched Bajaj M–50.

1984– On January 19, the foundation stone laid for the new plant at Waluj, Aurangabad.

1985– On November 5, the Waluj plant inaugurated by the erstwhile President of India,
GianiZail Singh. The company commenced production at Waluj, Aurangabad in a record time of
16 months.

1986– The Bajaj M–80 and the Kawasaki Bajaj KB100 motorcycles were introduced. The
company produced and sold 500,000 vehicles in a single financial year.

1990– The Bajaj Sunny was introduced.

1991– The company introduced Kawasaki Bajaj 4S Champion.

1994– It launched Bajaj Classic.

1995– On November 29, Bajaj Auto turned into a 50–year old company. It signed agreements
with Kubota of Japan for the development of diesel engines for three–wheelers and with Tokyo
R&D for ungeared scooter and moped development. The Bajaj Super Excel is introduced while

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Bajaj celebrated its ten millionth vehicle. The same year one million vehicles were produced and
sold by company in that financial year.

1997– The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.

1998– The company commenced production at Chakan plant. It rolled out Kawasaki Bajaj
Caliber from its Waluj plant. Bajaj Auto launched Legend, India's first four–stroke scooter from
Akurdi plant. The same year Spirit was launched.

1999– Caliber motorcycle notched up 100,000 sales in record time of 12 months.

2000– The company launched Bajaj Saffire.

2001– Bajaj Auto launched its latest offering in the premium bike segment 'Pulsar'. The same
year Eliminator was launched.

2003– Bajaj Pulsar DTS–i was launched. The company sold 107,115 motorcycles in a month.
The company launched Bajaj Wind 125, The World Bike in India. It launched its Caliber115
'Hoodibabaa!' in the executive motorcycle segment.

2004– Bajaj Discover DTS–I, new Bajaj Chetak 4–stroke with wonder gear and Bajaj CT100
were launched. Bajaj unveiled new brand identity, new symbol, logo and brandline.

2005– Bajaj Discover, Bajaj Avenger DTS–I and Bajaj Wave DTS–I were introduced.

2006– Bajaj Platina was launched.

2007– RE GDi autorickshaw, Bajaj XCD 125 DTS–Si, Bajaj Pulsar 220 DTS–Fi, 200 cc Pulsar
DTS–I and Bajaj Kristal DTS–i were launched. The company also underwent through revamping
of its organisational structure.

2008– Bajaj Platina 125 DTS–Si was launched.

2009– Bajaj Pulsar 150 & 180 upgrade and Bajaj XCD 135 DTS–Si were launched

2010 – Bajaj Auto launched a 135 cc Pulsar, priced at Rs. 51,000, pushing the Pulsar brand into
the mass segment.

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2011– April, Bajaj Records its best year ever of 2010.

2011–Bajaj Auto ties–up with SBI for inventory finance to dealers.

2012 –Bajaj Auto tied up with Japan’s Kawasaki in Indonesia.

Additional Details :

 Public Company.
 Incorporated: 1945 as M/s Bachraj Trading Ltd.
 Employees: 17,200
 Sales: Rs. 42.16 billion ($903.36 million)(2000).
 Stock Exchanges: Pune Mumbai Delhi London Berlin Frankfurt Munich
 Ticker Symbols: BAJAJAUTO 490 BJATq.L 893361.BE 893361.F 893361.MU
 NAIC: 336991 Motorcycle, Bicycle, and Parts Manufacturing.

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CHAPTER-4

RESEARCH METHODOLOGY AND

DATA COLLECTION

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RESEARCH METHODOLOGY

Generally research is considered as an endeavour to arrive at the answer to intellectual and

practical problem through the application of scientific methods to the knowledge universe. It is
movement from known to unknown. Research is essentially a logical and an organized enquiry
seeking facts through objective verifiable methods in order to discover the relation among
them and to refer from the board principles or laws. It is really a method of critical thinking.

Research may be defined as a systematic and objective analysis and recording of

controlled observations that may lead to the development of generalization of principles or
theories resulting in predicting and possibly ultimate control of events.

Methodology is often used in a narrow sense to refer to methods, technology or tools employed
for the collection data as well as it’s processing. This is also used sometimes to designate data
collection to arrive at the conclusion. Infects, it describes that what should have been done. It
provides answers to some of the major questions while search like what must be done, how it
will be employed, how sources of data will be analysed to arrive at the conclusion. For
systematic research scientific approach is necessary. It is therefore essential to follow systematic
methodology to arrive at a proper conclusion.

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The procedures involved in the concept of research methodology are:-

1) Selection of subject.

2) Selection of project title.

3) Selection of time period.

4) Collection of data.

5) Reliability of data.

6) Analysis of data.

7) Reporting.

METHODOLOGY OF ANALYSIS:-

Data which has been collected through various sources has to proceed and analysed the accepted
relevant scientific method are used for analysed processing is done by different graphs, which
clearly show the finding and half us to understand thing is more better way different table and
comparative chart also used for analysed and the most important ways was case study and
illustration.

1.ANALYSIS: The data collected has to process and analysis is done in accordance with the
acceptable relevant scientific method processing of the data covers editing loading classification.

2.EDITING: Editing is a routine task it is process of examining collected data especially in

survey to detest and animate error editing endures completeness accuracy and uniformity.

3.CODING: It is process of assign numerical or other symbol to symbol to answer so

that response can be part in a limited number of categories.

4.CLASSIFICATION: The large volume of data collected for a search study has to be
reduced in homogenous gropes for getting a meaningful relationship. This is known as

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classification of data. It condense data in such way that similarities and dissimilarities can easily be
apprehended, so as to facilities comparison. Classification of data collected can be categorized as by
geographical grouping chronological grouping qualitative and quantitative groupings.

5.TABULATION: It is a process of summarizing row data and displaying the same in concept
from for further analysis. The tabulation can be simplified in rows and columns; it conserves
space and minimizes exploratory and descriptive statements. Tabulation facilities the process of
comparison. It assists in various statistical computations. It simplifies complex data, and gives
identify to data and reveals pattern.

6.GRAPHIC PRESENTATION: Graphic presentation of statistical data gives a pictorial effect.

It enables one to present data in simple, clear and effective manner. It shows what is happening
and what is likely to take place just as quickly as the age is capable of working. A graph is a
visual form of presentation. It provides an attractive and impressive view. It also provides easy
comparison of two or more phenomena.

Research Process
Before embarking on the details of research methodology and techniques, it seems appropriate to
present a brief overview of the research process. Research process consists of series of actions or
steps necessary to effectively carry out research and the desired sequencing of these steps.

If subsequent procedures have not been taken into account in the early stages, serious difficulties
may arise which may even prevent the completion of the study. One should remember that the
various steps involved in a research process are not mutually exclusive; nor they are separate
and distinct. They do not necessarily follow each other in any specific order and the researcher
has to be constantly anticipating at each step in the research process the requirements of the
subsequent steps. However, the following order concerning various steps provides a useful
procedural guideline regarding the research process:

(1) Formulating the research problem;

(2) Extensive literature survey;

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(3) Developing the hypothesis;

(4) Preparing the research design;

(5) Determining sample design;

(6) Collecting the data;

(7) Execution of the project;

(8) Analysis of data;

(9) Hypothesis testing;

(10) Generalisations and interpretation, and

(11) Preparation of the report or presentation of the results.

Research Design

MEANING OF RESEARCH DESIGN

The formidable problem that follows the task of defining the research problem is the preparation
of the design of the research project, popularly known as the “research design”. Decisions
regarding what, where, when, how much, by what means concerning an inquiry or a research
study constitute a research design. “A research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.”

Infact, the research design is the conceptual structure within which research is conducted; It
constitutes the blueprint for the collection, measurement and analysis of data. As such the design
includes an outline of what the researcher will do from writing the hypothesis and its operational

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implications to the final analysis of data. More explicitly, the design decisions happen to be in
respect of:

(i) What is the study about?

(ii) Why is the study being made?

(iii) Where will the study be carried out?

(iv) What type of data is required?

(v) Where can the required data be found?

(vi) What periods of time will the study include?

(vii) What will be the sample design?

(viii) What techniques of data collection will be used?

(ix) How will the data be analysed?

(x) In what style will the report be prepared?

Keeping in view the above stated design decisions, one may split the overall research design into
the following parts:

(a) The sampling design which deals with the method of selecting items to be observed for
the given study;

(b) the observational design which relates to the conditions under which the observations are
to be made;

(c) The statistical design which concerns with the question of how many items are to be
observed and how the information and data gathered are to be analysed; and

(d) The operational design which deals with the techniques by which the procedures
specified in the sampling, statistical and observational designs can be carried out.

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From what has been stated above, we can state the important features of a research design
asunder:

(i) It is a plan that specifies the sources and types of information relevant to the researchproblem.

(ii) It is a strategy specifying which approach will be used for gathering and analysing the data.

(iii) It also includes the time and cost budgets since most studies are done under these
two constraints.

In brief, research design must, at least, contain—(a) a clear statement of the research problem;
(b) procedures and techniques to be used for gathering information; (c) the population to be
studied and (d) methods to be used in processing and analysing data.

NEED FOR RESEARCH DESIGN

Preparation of the research design should be done with great care as any error in it may upset the
entire project. Research design, in fact, has a great bearing on the reliability of the result arrived
at and as such constitutes the firm foundation of the entire edifice of the research work.

Even then the need for a well thought out research design is at times not realised by many. The
importance which this problem deserves is not given to it. As a result many researches do not
serve the purpose for which they are undertaken. In fact, they may even give misleading
Conclusions. Thoughtlessness in designing the research project may result in rendering the
research exercise futile. It is, therefore, imperative that an efficient and appropriate design must
be prepared before starting research operations. The design helps the researcher to organize his
ideas in a form whereby it will be possible for him to look for flaws and inadequacies. Such a
design can even be given to others for their comments and critical evaluation. In the absence of
such a course of action, it will be difficult for the critic to provide a comprehensive review of
theproposed study.

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FEATURES OF A GOOD DESIGN

A good design is often characterised by adjectives like flexible, appropriate, efficient, and
economical and so on. Generally, the design which minimises bias and maximises the reliability
of the data collected and analysed is considered a good design. The design which gives the
smallest experimental error issupposed to be the best design in many investigations. Similarly, a
design which yields maximal information and provides an opportunity for considering many
different aspects of a problem is considered most appropriate and efficient design in respect of
many research problems. Thus, the question of good design is related to the purpose or objective
of the research problem and also with the nature of the problem to be studied. A design may be
quite suitable in one case, but may be found wanting in one respect or the other in the context of
some other research problem. One single design cannot serve the purpose of all types of research
problems.

A research design appropriate for a particularresearch problem, usually involves the

consideration of the following factors:

(i) The means of obtaining information;

(ii) The availability and skills of the researcher and his staff, if any;

(iii) The objective of the problem to be studied;

(iv) The nature of the problem to be studied; and

(v) The availability of time and money for the research work.

If the research study happens to be an exploratory or a formulate one, where in the major
emphasises on discovery of ideas and insights, the research design most appropriate must be
flexible enough to permit the consideration of many different aspects of a phenomenon. But
when the purpose of a study is accurate description of a situation or of an association between
variables (or in what are called the descriptive studies), accuracy becomes a major consideration
and a research design which minimises bias and maximises the reliability of the evidence
collected is considered a good design. Studies involving the testing of a hypothesis of a causal

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relationship between variables require a design which will permit inferences about causality in
addition to the minimisation of bias and maximisation of reliability. But in practice it is the most
difficult task to put a particular study in a particular group, for a given research may have in it
elements of two or more of the functions of different studies. It is only on the basis of its primary
function that a study can be categorised either as an exploratory or descriptive or hypothesis-
testing study and accordingly the choice of a research design may be made in case of a particular
study. Besides, the availability of time, money, skills of the research staff and the means of
obtaining the information must be given due weightage while working out the relevant details of
the research design such as experimental design, survey design, sample design and the like.

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OBJECTIVES OF THESTUDY
To understand the information contained in financial statements with a view to know the strength
or weakness of the firm and to make forecast about the future prospects of the firm and thereby
enabling the financial analyst to take different decisions regarding the operations of the firm.

 To study the present financial system at Bajaj auto ltd.

 To study the liquidity, current ratios, fund flows and cash flow statements.
 To analysethe capital structure of the company with the help of Leverage Ratios.
 To offer appropriate suggestions for the better performance of the company.
 To study the overall performance of the company.

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DATA COLLECTION

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Collection of data refers to purposive gathering of information relevant to the subject matter
under study and the methods used depend mainly on the nature, purpose and scope of the
enquiry to be undertaken, as well as on the availability of resources and time.

The data collection can be grouped under two types:-

 Primary data

 Secondary data

PRIMARY DATA: -Primary data are those which are collected for the first time. They are
original in character. They are collected by the researcher for the first time for her own use.

The source of primary data includes:

1. Direct personal investigation

2. Interview

1. DIRECT PERSONAL INVESTIGATION-This implies the situation where the

researcher goes into the field of study in person for the collection of required data. Also,
the investigation of this nature is normally confined to a single locality and the
information gathered is capital in nature.

2. INTERVIEW METHOD-Every interview has got its own balance of revaluation and
has withheld information, an interview can be effective informal verbal and non-verbal
conversation initiated for the specific purpose focus on a certain planned contained areas.

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SECONDARY DATA: - Secondary data are those which have already been collected by
others. When it is not possible to collect data in primary form, the researcher may take the help
of secondary data. They are thus which have already been collected for serving the objectives
other then what the researcher might have in his mind.

The sources of secondary data includes:-

1)Books

2)Websites

3)Journals

1. BOOKS:

A book is a collection of paper or other material with text, pictures, or both written on them,
bound together along one edge, usually with covers. In library and information science, a book
is calling a monograph to distinguish it from serial periodicals such as magazines journals or
newspapers.

2. WEBSITE:

A website may be the work of an individual, a business or other organization and is typically
dedicated to some particular topic or purpose. Any website can content s hyperlink to any other
website, so the distinction between individual sites, as perceived by the user, may sometimes to
blur.

3. JOURNALS:

A journal may publication issued at stated intervals, such as magazines or the record of the
transactions of a society, are often called journals. In academic use, a journals refers to a serious,
scholarly publication, most often peer-reviewed. The purpose of a journal is to provide a place
for the introduction a scrutiny of new research and often a forum for the critique of existing
research.

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CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

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1. CURRENT RATIO

Current Ratio = Current Assets/Current liability

2018 2019 2020 2021 2022

YEAR

2.25 1.45 1.55 2.15 1.95

Current Ratio

Current Ratio
3
2.51
2.5 2.25
1.95
2
1.55
1.45
1.5
Current Ratio

0.5

0
2018 2019 2020 2021 2022

INTERPRETATION

High current ratio indicates that company will be able to pay the debt on maturity. Within ayear
Low current ratio indicates that company will not be able to meet its short debts.From the above
graph we can see that the current ratio of the company is continuously decreasing from 2017 to
2019 but increasing in 2020 and 2021.

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2. TOTAL ASSET TURNOVER RATIO

Total Asset Turnover Ratio = Net Sales/ Average Total Assets

2022
YEAR 2018 2019 2020 2021

Turnover 105.64 110.48 120.76 87.79 92.15

ratio

Total Asset Turnover Ratio

Total Asset Turnover Ratio
140

120
120.76
100 110.48
105.64
92.15
80 87.79

60

40

20

0
2018 2019 2020 2021 2022

INTERPRETATION

It indicates how efficiently the assets are employed overall. It indicates relationships between
the amount invested in the assets and the results accrues in terms of sale.

Higher turnover ratio means company is using its assets more efficiently, lower ratio means that the
company isn't using its assets efficiently and most likely have management problems.In this
company's ratio is rising during year 2017 to 2018and slightly down during year 2019 to 2021.

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3. FIXED ASSET TURNOVER RATIO

Fixed Assets Turnover Ratio = Net Sales / Average Fixed Assets

2022
YEAR 2018 2019 2020 2021

Fixed asset 13 16.69 17 16.50 18.65

turnover ratio

Fixed asset turnover ratio

20
18 18.64
16 17
16.69 16.5
14
12 13
10
Fixed asset turnover ratio
8
6
4
2
0
2018 2019 2020 2021 2022

INTERPRETATION

It indicates efficiency in the utilization of fixed asset like plant and machinery by management.

The higher the ratio, the better, a high ratio indicates that the business has less money tied up in
fixed assets. A declining ratio may indicate that the business is over invested in plant, equipment,
or other fixed assets.

From the above we can see that fixed asset turnover ratio is increasing from 2017 to 2020. But
it is decreased in 2021.

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4. GROSS PROFIT RATIO

Gross Profit Ratio = Gross Profit/Net Sales × 100

2022
YEAR 2018 2019 2020 2021

Gross profit 24.23 23.29 22.81 22.34 23.88

ratio

Gross profit ratio

24.5

24

23.5

23

22.5 Gross profit ratio

22

21.5

21
2018 2019 2020 2021 2022

INTERPRETATION

Decrease in ratio indicates reduction in selling price or increase in the cost of distribution or
decline in the business activity. Increase in the ratio indicates increase in the selling price or
reduction in the cost of distribution.From the above table we can see that gross profit ratio
is continuously decreasing from 2017 to 2021.

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5. NET PROFIT RATIO

Net Profit Ratio - Net Profit/Net Sales × 100

YEAR 2018 2019 2020 2021 2022

Net profit 140.58 161.56 176.24 157.40 170.89

ratio

Net Profit Ratio

200
176.24 170.89, 170.89
180 161.56 157.4
160
140.58
140
120
100
Net Profit Ratio
80
60
40
20
0
2018 2019 2020 2021 2022

INTERPRETATION

Higher the ratio indicates higher efficiency of the business and better utilization of total
resources.

From the above graph it seems that the company's ratio is increasing from 2017 to 2020. But it
is decreased in 2021.

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6. DEBT EQUITY RATIO

Debt Equity Ratio = Total Liabilities/Shareholders' Equity

YEAR 2018 2019 2020 2021 2022

Debt Equity 0.01 0.01 0.01 0.01 0.01

Ratio

Debt Equity Ratio

0.012
0.01 0.01 0.01 0.01 0.01
0.01

0.008

0.006
Debt Equity Ratio

0.004

0.002

0
2018 2019 2020 2021 2022

INTERPRETATION

Higher the ratio less secured the creditors, lower the ratio creditors enjoy higher degree of safety.

From the above graph we can see that debt equity ratio of the company is very minimal
and constant meaning company is doing very well.

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7. QUICK RATIO

Quick ratio= Current Assets - Inventories

Current Liabilities

YEAR 2018 2019 2020 2021 2017

Quick ratio 2.07 1.25 1.31 2.25 2.72

Quick Ratio
3 2.72

2.5 2.25
2.07
2

1.5 1.31
1.25 Quick Ratio
1

0.5

0
2018 2019 2020 2021 2022

INTERPRETATION

A quick ratio greater than or equal to "1" indicates a company has enough liquid assets to meet
its short-term obligations. What qualifies as a "good" quick ratio depends on a number of factors,
including the industry, management’s risk tolerance and economic conditions.

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8. INVENTORY TURNOVER RATIO

Inventory Turnover Ratio = Cost of Goods Sold

Average inventories

YEAR 2018 2019 2020 2021 2022

Inventory
33.89 31.46 28.13 18.57 29.88
Turnover Ratio

Inventory Turnover Ratio

40
33.89
35 31.46
29.88
30 28.13

25
18.57
20
Inventory Turnover Ratio
15

10

0
2018 2019 2020 2021 2022

INTERPRETATION

In general, the higher the ratio numbers the better as it most often indicates strong sales. A lower
ratio can point to weak sales and/or decreasing market demand for the goods.

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9. RETURN ON ASSETS (ROA)

Return on Assets (ROA) =Net Income

Total assets

YEAR 2018 2019 2020 2021 2022

Return on
17.07 17.07 20.58 14.44 18.38
Assets ratio

Return on Assets Ratio

25
20.58
20 18.38
17.07 17.07
14.44
15

10 Return on Assets Ratio

0
2018 2019 2020 2021 2022

INTERPRETATION

A Return on Assets (ROA) of over 5% is generally considered good and over 20% excellent. In
this graph we can see company’s ROA is good but comparatively in year 2021 it goes down.

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10. Dividend Per Share (DPS)

Dividend per Share (DPS)= Total Dividends Paid / Shares Outstanding

YEAR 2018 2019 2020 2021 2022

Dividend per
60.00 60.00 120.00 140.00 170
Share

Dividend per Share Ratio

180 170
160
140
140
120
120
100
80
60 60 Dividend per Share Ratio
60
40
20
0
2018 2019 2020 2021 2017

INTERPRETATION

A high DPS tells that a company is in a good position, is churning good profits and has enough
surplus cash so it can reward its shareholders. In another way, it also tells us that the company
values its shareholders.

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CHAPTER - 6

FINDINGS AND CONCLUSION

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FINDINGS :-

 The Current Ratio for the financial year 2017 is 2.92 , for the financial year 2018 is 2.25,
for the financial year 2019 is 1.45, for the financial year 2020 is 1.55, for the financial
year 2021 is 2.51.
 Total Asset Turnover Ratio for the financial year 2017 is 104.57 , for the financial year
2018 is 105.64 , for the financial year 2019 is 110.48 , for the financial year 2020 is
120.76 , for the financial year 2021 is 87.79 .
 Fixed Assets Turnover Ratio for the financial year 2017 is 10.64 , for the financial year
2018 is 13 , for the financial year 2019 is 16.69 , for the financial year 2020 is 17 , for the
financial year 2021 is 16.50 .
 Gross Profit Ratio for the financial year 2017 is 25.92 , for the financial year 2018 is
24.23 , for the financial year 2019 is 23.29 , for the financial year 2020 is 22.81 , for the
financial year 2021 is 22.34 .
 Net Profit Ratio for the financial year 2017 is 132.27 , for the financial year 2018 is
140.58 , for the financial year 2019 is 161.56 , for the financial year 2020 is 176.24 , for
the financial year 2021 is 157.40 .
 From above table the total asset turnover ratio is high ie 120.76 (in the year of 2019-20),
when compared with remaining years (i.e., 2016-17, 2017-18, 2018- 19,2020-21). In the
beginning the Company was in good in using asset efficiency, later it was quite normal
and negligible.
 From above table the fixed asset turnover is too high in the year 2019 and 2021. when
compared to remaining years (i.e., 2016-17, 2017-18 ,2019-20) So, its shows that firm is
likely operating over capacity and needs to either increase its asset base (plant, property,
equipment) to support its sales or reduce its capacity.
 From the above table the gross profit was high in the year 2016-17, when compared to
remaining years (i.e., 2017-18, 2018-19, 2019-20, 2020-21). A high gross profit margin
indicates that the Company can make a reasonable profit, as long as it keeps the overhead
cost in control. A low margin indicates that the business is unable to control its
production cost.

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 From the above table the net profit margin is high in the year 2019-20, when compared to
previous years. So it's shows that higher the margin is, the more effective the Company is
in converting revenue into actual profit.

CONCLUSION:-

 After all the findings, it is concluded that financial ratios are the basic and most
important part of any business. It describes the firm's financial position.

 As the data indicates that Bajaj Auto Limited is an international brand and has
expanded its business on the large geographical area and also offers the large range of
products.

 From the financial statements it is clear that the financial position of the Bajaj
Auto Limited is for better. . It is preferred by the customers and also an internationally
distributed. It also has less risk.

 It gives more return because it gains more profit. On the other hand deals with the
limited products in a limited geographical area but on the basis of financial ratios Bank
has a better financial position and also has an opportunity to expand its business.

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CHAPTER - 7

LIMITATIONS AND SUGGESTIONS

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Limitations :-

 The time period regarding the completion of the project was limited.
 The data wasn't available in proper manner which created a lot of problems in
analysing it.
 There wasn't an understanding of complex matter.
 The study was limited to only one company.
 Only five years were considered for the study.
 There was a lack of previous studies in the research area.

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SUGGESTIONS :-

 New and advanced concept must be introduced in inventory control management

 Adequate planning is required for procurement of store items.

 A detail of the essence of effective working financial management is proper cash

flow forecasting. This should take into account the impact of unforeseen events, market
cycles, loss of a prime customer and actions by competitors.

 Company should conduct survey from time to time, according to which

changes can be introduced in the organization to stay updated in the market.
 Employee should be trained according to the changing standards of the organization

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CHAPTER – 8

BIBLIOGRAPHY

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THE PROJECT HAS BEEN PREPARED FROM THE DATA AVAILABLE TO ME

FROM FOLLOWING WAY.

1) BOOKS

 Annual report of Bajaj auto ltd.

 Financial management - Khan and Jain

 Financial management- Prasanna Chandra
 Shashi K. Gupta and Sharma R.K, Financial Management
 Financial management - Srivastava R., Oxford Publications
 Financial management - Pandey I M, Vikas publication, New Delhi,

2) JOURNALS

 Income statements of Bajaj auto ltd. In The year 2017-2021

 Balance sheet of a Bajaj auto ltd. In The year 2017-2021

3) WEBSITES

www.bajajauto.com

www.wikipedia.com

www.moneycontrol.com

www.capitalmarket.com

www.ndtvprofit.com

www.economicstimes.com

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CHAPTER – 9

ANNEXURE

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BALANCE SHEET

BALANCE SHEET OF BAJAJ MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

AUTO (in Rs. Cr.)

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 289.37 289.37 289.37 289.37 289.37

TOTAL SHARE CAPITAL 289.37 289.37 289.37 289.37 289.37

Reserves and Surplus 26,379.43 24,912.89 19,636.12 21,490.53 18,814.49

TOTAL RESERVES AND 26,379.43 24,912.89 19,636.12 21,490.53 18,814.49

SURPLUS

TOTAL SHAREHOLDERS 26,668.80 25,202.26 19,925.49 21,779.90 19,103.86

FUNDS

NON-CURRENT LIABILITIES

Long Term Borrowings 0.00 0.00 0.00 0.00 120.77

Deferred Tax Liabilities [Net] 403.33 522.14 346.38 542.66 323.42

Other Long Term Liabilities 159.07 160.61 167.72 169.59 47.96

Long Term Provisions 1.30 1.98 80.50 14.56 112.19

TOTAL NON-CURRENT 563.70 684.73 594.60 726.81 604.34

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 0.00 0.00 0.00 0.00 0.00

Trade Payables 3,633.18 4,573.81 3,199.70 3,786.73 3,244.32

Other Current Liabilities 902.51 917.03 895.54 946.33 741.37

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Short Term Provisions 153.75 152.37 157.97 140.62 125.60

TOTAL CURRENT 4,689.44 5,643.21 4,253.21 4,873.68 4,111.29

LIABILITIES

TOTAL CAPITAL AND 31,921.94 31,530.20 24,773.30 27,380.39 23,819.49

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 1,757.57 1,565.33 1,602.03 1,688.69 1,821.22

Intangible Assets 25.32 47.30 43.09 19.75 0.00

Capital Work-In-Progress 76.82 15.98 46.54 11.54 11.15

Other Assets 51.13 52.30 53.90 55.50 57.11

FIXED ASSETS 1,910.84 1,680.91 1,759.21 1,811.96 1,934.80

Non-Current Investments 18,849.63 14,602.84 15,416.20 17,582.88 11,822.89

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And 4.57 5.22 32.46 31.63 30.64

Advances

Other Non-Current Assets 1,162.43 1,066.10 968.47 891.26 795.53

TOTAL NON-CURRENT 21,927.47 17,355.07 18,176.34 20,317.73 14,583.86

ASSETS

CURRENT ASSETS

Current Investments 4,969.13 8,028.11 2,779.75 1,576.48 5,765.41

Inventories 1,230.51 1,493.89 1,063.50 961.51 742.58

Trade Receivables 1,516.38 2,716.85 1,725.10 2,559.69 1,491.87

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Cash And Cash Equivalents 588.34 527.36 308.27 922.81 778.00

Short Term Loans And 4.17 5.74 6.11 6.34 6.26

Advances

OtherCurrentAssets 1,685.94 1,403.18 714.23 1,035.83 451.51

TOTAL CURRENT ASSETS 9,994.47 14,175.13 6,596.96 7,062.66 9,235.63

TOTAL ASSETS 31,921.94 31,530.20 24,773.30 27,380.39 23,819.49

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PROFIT AND LOSS STATEMENT

PROFIT & LOSS ACCOUNT MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

OF BAJAJ AUTO (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

REVENUE FROM 32,135.98 27,132.90 29,111.54 29,567.25 25,098.64

OPERATIONS [GROSS]

Less: Excise/Service Tax/Other 0.00 0.00 0.00 0.00 398.34

Levies

REVENUE FROM 32,135.98 27,132.90 29,111.54 29,567.25 24,700.30

OPERATIONS [NET]

TOTAL OPERATING 33,144.71 27,741.08 29,918.65 30,249.96 25,164.92

REVENUES

Other Income 1,209.24 1,276.46 1,733.56 1,649.31 1,347.25

TOTAL REVENUE 34,353.95 29,017.54 31,652.21 31,899.27 26,512.17

EXPENSES

Cost Of Materials Consumed 22,169.88 18,308.09 19,484.62 20,301.35 15,999.16

Purchase Of Stock-In Trade 1,971.98 1,521.04 1,586.67 1,579.38 1,401.25

Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00

Changes In Inventories Of 187.96 -219.48 -63.01 -56.42 9.68

FG,WIP And Stock-In Trade

Employee Benefit Expenses 1,358.80 1,285.96 1,389.21 1,255.40 1,069.09

Finance Costs 8.66 6.66 3.16 4.48 1.31

Depreciation And Amortisation 269.17 259.28 246.43 265.69 314.80

Expenses

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Other Expenses 2,210.76 1,929.26 2,454.90 2,218.33 1,926.38

TOTAL EXPENSES 28,163.90 23,078.54 25,072.01 25,538.11 20,697.60

PROFIT/LOSS BEFORE 6,190.05 5,939.00 6,580.20 6,361.16 5,814.57

EXCEPTIONAL,
EXTRAORDINARY ITEMS
AND TAX

Exceptional Items 315.28 0.00 0.00 342.00 -32.00

PROFIT/LOSS BEFORE TAX 6,505.33 5,939.00 6,580.20 6,703.16 5,782.57

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 1,667.11 1,348.10 1,547.26 1,818.59 1,646.36

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax -180.65 36.31 -67.04 209.39 68.11

Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 1,486.46 1,384.41 1,480.22 2,027.98 1,714.47

PROFIT/LOSS AFTER TAX 5,018.87 4,554.59 5,099.98 4,675.18 4,068.10

AND BEFORE
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM 5,018.87 4,554.59 5,099.98 4,675.18 4,068.10

CONTINUING OPERATIONS

PROFIT/LOSS FOR THE 5,018.87 4,554.59 5,099.98 4,675.18 4,068.10

PERIOD

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CASH FLOW STATEMENT

CASH FLOW OF BAJAJ AUTO (in MAR 22 MAR 21 MAR 20 MAR 19 MAR 18
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

NET PROFIT/LOSS BEFORE 6,505.33 5,939.00 6,580.20 6,703.16 5,782.57

EXTRAORDINARY ITEMS AND TAX

Net CashFlow From Operating 4,207.57 3,113.86 3,861.76 2,489.53 0.00

Activities

Net Cash Used In Investing Activities -95.95 - 1,754.54 -244.08 0.00

2,865.35

Net Cash Used From Financing - -19.52 - - 0.00

Activities 4,056.33 6,246.51 2,074.05

Foreign Exchange Gains / Losses 3.55 -1.19 2.16 -26.96 23.61

Adjustments On Amalgamation Merger 0.00 0.00 0.00 0.00 0.00

Demerger Others

NET INC/DEC IN CASH AND CASH 58.84 227.80 -628.05 144.44 0.00
EQUIVALENTS

Cash And Cash Equivalents Begin of 505.13 277.33 905.38 760.94 279.82
Year

Cash And Cash Equivalents End Of 563.97 505.13 277.33 905.38 760.94
Year

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