MVSR ENGINEERING COLLEGE

DEPARTMENT OF BUSINESS
ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
PRESENTED BY : MBA 1st years
A.BHAVANI
SAI KEERTHANA
NIHARIKA
ANUSHA
SAI SHRUTHI
RAVALI
MAHESH
MAHENDAR
 CONTENTS:

• Company Introduction

• About Board of Directors

• Vision, Mission, Purpose

• Financial Performance

• Financial Statement

• Ratios
COMPANY INTRODUCTION

• Company Name : Eicher Motors

• Sector : Automobile ( LCVS & HCVS )
• Incorporation : 1958 in INDIA
In 1996, Eicher Tractors Ltd. Amalgamated with Royal Enfield Motors
to form Eicher Ltd.
BOARD OF DIRECTORS :

SIDDHARTHA LAL
S.SANDILYA
MD, EICHER MOTORS MANVI SINHA
CHAIRMAN, EML
INDEPENDENT DIRECTOR,EML

VINOD K. DASARI INDER MOHAN SINGH VINOD AGGARWAL

WTD, CEO RE INDEPENDENT DIRECTOR,EML NON-EXECUTIVE DIRECTOR,EML
Vision:
To be recognized as the industry leader driving modernization in commercial transportation in India and the developing World.

Mission:
VECV aims to continuously improve transportation efficiency in India in developing markets.

• We choose to do this in a sustainable manner by having the safest , most durable and efficient products in the market.

• We care for our customers.

• We work with the driver community to enhance their productivity and overall working environment.

• We ensure the level of quality and innovation that will continue to set standards in the commercial transportation industry.

• We work with professionalism, passion, and the greatest respect for all individuals.

PURPOSE:
• Eicher Motor is an Indian manufacturer of motorcycles and commercial vehicles.

• To encourage, enable and kick-start the active, lifelong pursuit of exploration

• We believe that pure motorcycling unlocks this pursuit, that’s why – we keep riding pure.
FINANCIAL PERFORMANCE
FINANCIAL STATEMENT AS ON 31ST MARCH, 2019
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2019
 RATIO ANALYSIS:
THE FIVE FINANCIAL YEARS OF RATIO ANALYSIS OF EICHER MOTORS ARE CALCULATED AND GIVEN BELOW.

CURRENT RATIO: using the balance sheet the current ratio is calculated by dividing current assets by
current liabilities.
Current ratio = Current Assets/ Current Liabilities.

2018-19 2017-18 2016-17 2015-16 2014-15

Current CA/CL 2.21 CA/CL 1.15 CA/CL 0.94 CA/CL 0.98 CA/CL 1.31
Ratio CA 4,379.39 CA 2,524.42 CA 1,360.36 CA 1,174.81 CA 1,250.81
CL 1,978.38 CL 2,194.63 CL 1,453.66 CL 1,196.37 CL 956.82

CURRENT RATIO
2.21

2019 1.15
2018 0.94
2017 0.98
2016 1.31
2015

1 2 3 4 5

Series1
3
2
1
s
e
i
r
e
S
Series2
QUICK RATIO: The quick ratio or acid test ratio measures the ability of a company to pay its current liabilities.

Quick ratio = cash + cash equivalents + short-term investments + current receivable

Current Liabilities
2018-19 2017-18 2016-17 2015-16 2014-15
Quick QA/CL 1.19 QA/CL 0.98 QA/CL 0.71 QA/CL 0.73 QA/CL 1.09
Ratio
QA 3,774.05 QA 2,145.19 QA 1,037.91 QA 874.45 QA 1,045.68
CL 1,978.38 CL 2,194.63 CL 1,453.66 CL 1,196.37 CL 956.82

QUICK RATIO
1.91

2019 0.98
2018 0.71
2017 0.73
2016 1.09
2015

S
e
r
i
e
1 2 3 4 5 s
21

Series1 Series2
EARNINGS PER SHARE ( EPS ) : Amount of net income earned per share

Earnings per share = Net profit after taxes – Preference dividend

Number of equity shares

2018-19 2017-18 2016-17 2015-16 2014-15

EARNINGS PER SHARE 753.02 632.44 573.29 452.8 206.21

PRICE -EARNINGS RATIO: It is calculated by dividing the market vale price per share by the earnings per
share.

Price –earnings ratio = market value per share / earnings per share

2018-19 2017-18 2016-17 2015-16 2014-15

Price-earnings
Ratio PRICE/EPS 27.30 PRICE/EPS 44.90 PRICE/EPS 44.66 PRICE/EPS 42.38 PRICE/EPS 77.17
PRICE 20560.00 PRICE 28,394.00 PRICE 25,604.00 PRICE 19,191.00 PRICE 15,914.00
EPS 753 EPS 632 EPS 573 EPS 453 EPS 206
PRICE – BOOK VALUE: If the company liquidated all of its assets and repaid all of its liabilities.

Price –Book value = company’s stock price / book value per share
(OR)
total assets – any liabilities

2018-19 2017-18 2016-17 2015-16 2014-15

Price Book PRICE/BV 7.87 PRICE/BV 14.41 PRICE/BV 17.76 PRICE/BV 22.31 PRICE/BV 34.96
Value PRICE 20,560 PRICE 28,394 PRICE 25,604 PRICE 19,191 PRICE 15,914
BV 2,612.09 BV 1,971.06 BV 1,441.59 BV 860.20 BV 455.14
 DEBT-EQUITY RATIO : It is calculated by dividing a company’s total liabilities by its shareholder equity.

Debt – equity Ratio = company’s total liabilities

shareholders equity

2018-19 2017-18 2016-17 2015-16 2014-15

DEBT- DEBT/EQUITY 0.052 DEBT/EQUITY 0.042 DEBT/EQUITY 0.037 DEBT/EQUITY 0.030 DEBT/EQUITY 0.031
EQUITY
RATIO
DEBT 3,725,800,000 DEBT 2,27,81,00,000 DEBT 1,45,59,00,000 DEBT 70,85,00,000 DEBT 38,41,00,000

EQUITY 71,264,500,000 EQUITY 53,722,300,000 EQUITY 39,225,900,000 EQUITY 23,364,100,000 EQUITY 12,336,600,000
NET PROFIT MARGIN: % of revenue left after all expenses has deducted from sales.

NET PROFIT MARGIN = NET PROFIT AFTER TAXES * 100

SALES

2018-19 2017-18 2016-17 2015-16 2014-15

NET PROFIT MARGIN

21.15 18.68 19.71 19.87 18.44
CONCLUSION
THANK YOU