PRESENTATIONONMARUTI SUZUKI IND. LTD.

Created ByPardeep

INTRODUCTION Maruti Suzuki India Ltd. is an automobile manufacturer in India . It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As November 2012, it had a market share of 37% of Indian passenger car markets. Maruti Suzuki manufacturers and sells a complete range of cars from the entry level Maruti 800, Alto, Ritz, Celerio, A-star, Swift, Wagon R, Zen and Omni etc.

KEY POINTS Type - Public Industry - Automotive Founded - 1981 Headquarters - New Delhi, India Chairman - R.C. Bhargava CEO and MD - Kenichi Ayukawa Product - Automobiles

Parent - Suzuki No. of employees - 6903 (2011) Revenue - ₨ 43272 crore (US$ 6.8 billion) (2013-14) Net Income - ₨ 2469 crore (US$ 390 million)(2013-14) Slogan - Count On Us

BOARD OF DIRECTORS

Mr. Kenichi AyukawaCEO and MD Mr. R. C. Bhargava

Chairman

Directors

Mr. Shigetoshi Torii Ms. Pallavi ShroffMr. Kazuhiko Ayabe

BRIEF HISTORY

• Maruti Udyog Ltd (MUL) was established in 1981.

• In 1982, a license & joint venture agreement signed between MUL and Suzuki of Japan.

• Actual production commenced in 1983 with named Maruti 800.

• Mr. Harpal Singh was the first owner of Maruti car which initial price is ₨ 47,500.

VISION AND CORE VALUES Customer obsession

Fast, Flexible & First Mover

Innovation & Creativity

Networking & Partnership

Openness & Learning

THE OBJECTIVES Modernization of the Indian Automobile Industry.

Production of fuel-efficient vehicles to conserve scares resources.

Production of large number of motor vehicles which was necessary for economic growth.

ACHIEVEMENTS Maruti Suzuki has been ranked 1st in

customer satisfaction eight years in a row from 2000-07.

The company has been rated amongst the top five manufacturers in Forbes World’s most Reputed Companies List, 2006.

The company’s record stands at 7 million Cars manufactured to date that is more than two-third of all cars on Indian roads.

EXPORTS Maruti Suzuki limited is a subsidiary of Maruti Suzuki with its major focus on exports and it does mot operate in domestic market. The first commercial consignment of 480 cars were sent to Hungary. Government encourage to do export to this company. Every political party expected Maruti to earn Foreign currency. Europe, Kenya, Nepal, Sri Lanka, Uganda and Chile are some markets served by Maruti Exports.

PRODUCTS

PRODUCTSMaruti 800 first car of the companyMaruti 800 is a small city car that was manufactured by Maruti Suzuki in India from 1983 to 18 January 2014Dimensions and weights Overall length: 3,340 mm (131.5 in) Overall width: 1,440 mm (56.7 in)Capacities Seating capacity: 5 persons maximum

MAJOR COMPETITORS Hyundai Motor India Ltd.

Tata Motors

Hindustan Motors

Mahindra & Mahindra

Toyota

FINANCIAL ANALYSIS

BALANCE SHEET

PROFIT & LOSS ACCOUNT

CASH FLOW STATEMENT

CASH FLOW ANALYSIS

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

-6000

-4000

-2000

0

2000

4000

6000

2887.4 2819.42229.4

4384.2 4903.5

-4783.3

343

-2918.3-3574.1

-4892.9

55.1 -752.1 616.5-966.3

-65.9 OperatingInvestingFinancing

COMPARATIVE BALANCE SHEETParticulars March 31,

2013March 31, 2014

Absolute Change

Percentage of change

ASSETSCurrent Assets

7868.30 7006.00 (862.30) (10.95)%

Non-Current Assets

18819.70 23529.70 4710.00 25.02%

Total Assets 26688.00 30535.70 3847.70 14.42%

LIABILITIESCurrent Liabilities

6719.90 7872.60 1152.70 17.15%

Non-Current Liabilities

1389.20 1685.10 295.90 21.30%

Equity 18579.90 20978.00 2398.10 12.91%Total Liabilities & Equities

26688.00 30535.70 3847.70 14.42%

TREND ANALYSISParticulars March 31,

2013March 31,2014

ASSETSCurrent Assets

7868.30 100 7006.00 89.04

Non-Current Assets

18819.70 100 23529.70 125.03

Total Assets 26688.00 100 30535.70 114.41

LIABILITIESCurrent Liabilities

6719.90 100 7872.60 117.15

Non-Current Liabilities

1389.20 100 1685.10 121.30

Equity 18579.90 100 20978.00 112.90

Total Liabilities & Equities

26688.00 100 30535.70 114.41

COMMONSIZE BALANCE SHEETParticulars March 31,

2013March 31, 2014

2013 2014

ASSETSCurrent Assets

7868.30 7006.00 29.48% 22.94%

Non-Current Assets

18819.70 23529.70 70.52% 77.06%

Total Assets 26688.00 30535.70 100% 100%

LIABILITIESCurrent Liabilities

6719.90 7872.60 25.17% 25.78%

Non-Current Liabilities

1389.20 1685.10 5.20% 5.52%

Equity 18579.90 20978.00 69.63% 68.70%Total Liabilities & Equities

26688.00 30535.70 100% 100%

CURRENT RATIO

Current Ratio = Current Assets/ Current Liabilities

In year 2010 2011 2012 2013 2014Current Ratio

1.02 1.58 1.33 1.17 0.88

CURRENT RATIO SITUATION

2010 2011 2012 2013 20140

0.20.40.60.8

11.21.41.61.8

1.02

1.581.33

1.17

0.880000000000001

Current Ratio

Current Ratio

QUICK RATIOQuick Ratio = Quick Assets/Current Liabilities

Quick Assets= Current Assets – Inventory – Prepaid Exp.

Years 2010 2011 2012 2013 2014Quick Ratio

0.67 1.26 1.03 0.89 0.67

QUICK RATIO SITUATION

2010 2011 2012 2013 20140

0.20.40.60.8

11.21.4

0.670000000000002

1.26

1.030.89

0.670000000000002

Quick Ratio

Quick Ratio

DEBT-EQUITY RATIODebt Equity Ratio = Debt/ Shareholders fund

Debt = All long term debts whichever secured or unsecuredShareholder’s fund = Equity capital + Preference capital +

Reserves & Surplus

Years 2010 2011 2012 2013 2014D.E. Ratio 0.03 0.01 - 0.02 0.02

DEBT EQUITY POSITION

2010 2011 2012 2013 20140

0.0050.01

0.0150.02

0.0250.03

0.035

0.03

0.01

0

0.02 0.02

D.E. Ratio

D.E. Ratio

INVENTORY TURNOVER RATIO

I.T. Ratio = Cost of goods sold/ Average Stock

C.O.G.S. = O.S + Purchases + D.E. – C.S.Average Stock = ( opening stock + closing

stock) / 2Year 2010 2011 2012 2013 2014Ratio 30.47 25.88 19.81 23.68 25.62

INVENTORY TURNOVER POSITION

2010 2011 2012 2013 201405

101520253035

30.4725.88

19.8123.68 25.62

Inventory Turnover Ratio

Inventory Turnover Ratio

PROFITABILITY RATIOSO.P. Ratio = Operating Profit / Net sales *100G.P. Ratio = Gross Profit/ Net sales*100N.P. Ratio = Net Profit/ Net sales*100

Years 2010 2011 2012 2013 2014O.P. Ratio 12.74 9.93 7.06 9.7 11.66G.P. Ratio 9.93 7.16 3.86 5.43 6.89N.P. Ratio 8.34 6.16 4.49 5.38 6.25

PROFITABILITY POSITION

2010 2011 2012 2013 20140

2

4

6

8

10

12

14

12.74

9.93

7.06

9.7

11.66

9.93 7.16 3.86 5.43 6.89

8.34

6.164.49

5.386.25

Operating Profit RatioGross Profit RatioNet Profit Ratio

DIVIDEND ANALYSIS

2010 2011 2012 2013 20140

102030405060708090

100

83.15 79.21

56.6

79.1992.13

8.09 9.46 13.25 11.82 13.02

E.P.SDivident Payout

Year 2010 2011 2012 2013 2014

E.P.S 83.15 79.21 56.60 79.19 92.13Dividend Payout

8.09 9.46 13.25 11.82 13.02

E.P.S /DIVIDENTPAYOUT

COMPOUND ANNUAL GROWTH RATE APPROACH

P = 11690.60 A = 20827.00 t = 5 years

A = P[1+r/100]^t

20827.00 = 11690.60[ 1+r/100]^5 20827.00/11690.60 = [1+r/100]^5

Years 2010 2011 2012 2013 2014Reserves & Surplus

11690.60 13723.00 15042.90 18427.90 20827.00

1.78 = [1+r/100]^5 By solving this

r = 12.2% Now it can be say that The Compound Annual Growth Rate of Maruti Suzuki India Ltd. in previous 5 year is 12.2%.