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Overview of Bajaj Auto Ltd

Bajaj Auto Ltd

Type Public company

Traded As BSE : 532977 NSE : BAJAJ-AUTO

Industry Automotive

Founder Jamnalal Bajaj

Headquarter Pune, India

Key People Rahul Bajaj (Chairman) Rajiv Bajaj (MD)

Products Motor Cycle, Three-Wheelers Vehicles & Car

Revenue RS. 208 Billion (2013)

Employees 8,036

Parent Bajaj Group

Subsidiaries Bajaj Auto Indonesia

Website www.bajajauto.com

Overview of Hero Motocorp Ltd

Hero Motocorp Ltd

“Hum Main Hai Hero”

Type Public Company

Traded As BSC : 500182 NSC: HEROMOTOCO

Industry Automotive

Predecessors Hero Honda Motors Ltd

Founded 19th January 1982

Headquarters New Delhi , India

Key People Dr Brijmohan lall Munjal (Chairman) Pawan Munjal (MD & CEO)

Products Motor Cycle , Scooter

Revenue RS. 241.66 billion (2013)

Employees 5,842

Parent Hero Group

Subsidiaries Erik Buell Racing

Website www.heromotocorp.com

Definitions

1). Common Size Income Statement

An income statement in which each amount is expressed as

a percentage of the values of sales.

This type of financial statement can be used to allow for

easy analysis between companies or between time periods

of a company.

2). Common Size Balance Sheet

A balance sheet that display both the numeric value of

all entries & the percentage each entry is relative to the

total value of related entries.

On common size balance sheet, an asset is compared to

total assets, a liability to total liabilities & stockholder

equity to total stockholder equity.

3). Trend Analysis

An aspect of technical analysis that tries to predict

the future movement of a stock based on past data.

Trend analysis is based on the idea that what has

happened in the past gives traders an idea of what

will happen in the future.

4). Ratio Analysis

Ratio Analysis is a form of financial statement

analysis that is used to obtain a quick indication of

a firm’s financial performance in several key areas.

Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths

Income

Sales Turnover 20,149.51 19,997.25 20,475.74

Excise Duty 0.00 0.00 959.09

Net Sales 20,149.51 19,997.25 19,516.65

Other Income 706.41 795.49 413.66

Stock Adjustments 18.90 -24.00 94.15

Total Income 20,874.82 20,768.74 20,024.46

Expenditure

Raw Materials 14,289.20 14,761.83 14,580.24

Power & Fuel Cost 106.16 121.33 101.85

Employee Cost 726.58 639.48 541.04

Other Manufacturing Expenses 0.00 0.00 73.76

Selling and Admin Expenses 0.00 0.00 364.06

Miscellaneous Expenses 940.73 815.36 263.37

Preoperative ExpCapitalised 0.00 0.00 -49.43

Total Expenses 16,062.67 16,338.00 15,874.89

Mar '14 Mar '13 Mar '12


Operating Profit 4,105.74 3,635.25 3,735.91

PBDIT 4,812.15 4,430.74 4,149.57

Interest 0.49 0.54 22.24

PBDT 4,811.66 4,430.20 4,127.33

Depreciation 179.61 163.97 145.62

Other Written Off 0.00 0.00 2.14

Profit Before Tax 4,632.05 4,266.23 3,979.57

Extra-ordinary items 0.00 0.00 46.60

PBT (Post Extra-ord Items) 4,632.05 4,266.23 4,026.17

Tax 1,388.73 1,222.66 1,022.12

Reported Net Profit 3,243.32 3,043.57 3,004.05

Total Value Addition 1,773.47 1,576.17 1,294.65

Preference Dividend 0.00 0.00 0.00

Equity Dividend 1,446.84 1,302.15 1,302.15

Corporate Dividend Tax 245.89 221.30 211.24

Profit & Loss account of Bajaj Auto ------------------- in Rs. Cr. -------------------

COMMON –SIZED PROFIT & LOSS ACCOUNT OF BAJAJ AUTO LTD FOR THE YEAR ENDED 31ST MARCH 2014 PARTICULARS MAR’ 2014 MAR’ 2013 MAR’ 2012

(RS IN CRORE)

COMMON SIZE %

(RS IN CRORE)

COMMON SIZE %

(RS IN CRORE)

COMMON SIZE %

Gross Sales 20,149.51 100 19,997.25 100 20,475.74 104.91

Excise Duty 0.00 0.00 0.00 0.00 (959.09) (4.91)

Net Sales 20,149.51 100 19,997.25 100 19,516.65 100

Materials Cost (14,289.20) (70.91) (14,761.83) (73.82) (14,580.24) (74.71)

(+)/(-) Stock Adj 18.90 0.09 (24) (0.12) 94.15 0.48

Other manufacturing exp 0.00 0.00 0.00 0.00 73.76 0.38

Preoperative ExpCapitalised

0.00 0.00 0.00 0.00 (49.43) (0.25)

COGS (14,270.30) (70.83) (14,785.83) (73.94) (14,510.42) (74.35)

GP ( Net Sales – COGS) 5,879.21 29.18 5,211.42 26.06 5,006.23 25.65

Employee cost (726.58) (3.61) (639.48) (3.20) (541.04) (2.77)

Power & Fuel Cost (106.16) (0.52) (121.33) (0.61) (101.85) (052)

Selling , Admi& Other exp (940.73) (4.67) (815.36) (4.08) (627.43) (3.21)

(+)Other Income (Operating)

706.41 3.51 795.49 3.98 413.66 2.12

PBDIT 4,812.15 23.88 4,430.74 22.16 4,149.57 21.26

Depreciation (179.61) (0.89) (163.97) (0.82) (147.76) (0.76)

Operating profit – OP/PBT

4,632.54 22.99 4,266.77 21.34 4,001.81 20.50

Interest & Finance Charge (0.49) (0.002) (0.54) (0.003) (22.24) (0.11)

PBTEOT 4,632.05 22.99 4,266.23 21.33 3,979.57 20.39

(+)/(-) Extra ordinary item 0.00 0.00 0.00 0.00 46.60 0.24

PBT -Y 4,632.05 22.99 4,266.23 21.33 4,026.17 20.63

(+)/(-) Prior Year Adj 0.00 0.00 0.00 0.00 0.00 0.00

PBT 4,632.05 22.99 4,266.23 21.33 4,026.17 20.63

Tax (1,388.73) (6.89) (1,222.66) (6.11) (1,022.12) (5.24)

Net Profit/PAT 3,243.32 16.09 3,043.57 15.22 3,004.05 15.39

Profit & Loss account of Hero Motocorp ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12


Income

Sales Turnover 25,275.47 23,768.11 25,252.98

Excise Duty 0.00 0.00 1,666.18

Net Sales 25,275.47 23,768.11 23,586.80

Other Income 446.38 398.38 347.46

Stock Adjustments -8.36 0.00 94.03

Total Income 25,713.49 24,166.49 24,028.29

Expenditure

Raw Materials 18,320.46 17,470.73 17,485.65

Power & Fuel Cost 137.46 129.18 112.66

Employee Cost 930.04 820.92 735.52

Other Manufacturing Expenses 0.00 0.00 51.62

Selling and Admin Expenses 0.00 0.00 1,257.84

Miscellaneous Expenses 2,339.09 2,025.33 389.52

Preoperative ExpCapitalised 0.00 0.00 0.00

Total Expenses 21,727.05 20,446.16 20,032.81

Mar '14 Mar '13 Mar '12


Operating Profit 3,540.06 3,321.95 3,648.02

PBDIT 3,986.44 3,720.33 3,995.48

Interest 11.82 11.91 33.43

PBDT 3,974.62 3,708.42 3,962.05

Depreciation 1,107.37 1,141.75 1,097.34

Other Written Off 0.00 0.00 0.00

Profit Before Tax 2,867.25 2,566.67 2,864.71

Extra-ordinary items 0.00 0.00 0.00

PBT (Post Extra-ord Items) 2,867.25 2,566.67 2,864.71

Tax 758.17 411.04 486.58

Reported Net Profit 2,109.08 2,118.18 2,378.13

Total Value Addition 3,406.59 2,975.43 2,547.16

Preference Dividend 0.00 0.00 0.00

Equity Dividend 1,299.13 1,198.13 898.59

Corporate Dividend Tax 220.79 203.62 145.77

Per share data (annualised)

Shares in issue (lakhs) 1,996.88 1,996.88 1,996.88

Earning Per Share (Rs) 105.62 106.07 119.09

Equity Dividend (%) 3,252.70 3,000.00 2,250.00

Book Value (Rs) 280.43 250.70 214.83

COMMON –SIZED PROFIT & LOSS ACCOUNT OF HERO MOTOCORP FOR THE YEAR ENDED 31ST MARCH 2014 PARTICULARS MAR’ 2014 MAR’ 2013 MAR’ 2012

(RS IN CRORE)

COMMON SIZE %

(RS IN CRORE)

COMMON SIZE %

(RS IN CRORE)

COMMON SIZE %

Gross Sales 25,275.47 100 23,768.11 100 25,252.98 107.06

Excise Duty 0.00 0.00 0.00 0.00 (1,666.18) (7.06)

Net Sales 25,275.47 100 23,768.11 100 23,586.8 100

Materials Cost (18,320.46) (72.48) (17,470.73) (73.50) (17,485.65) (74.13)

(+)/(-) Stock Adj (8.36) (0.03) 0.00 0.00 94.03 0.40

Other manufacturing exp 0.00 0.00 0.00 0.00 (51.62) (0.22)


0.00 0.00 0.00 0.00 0.00 0.00

COGS (18328.82) (72.51) (17,470.73) (73.50) (17,443.24) (73.95)

GP ( Net Sales – COGS) 6,946.65 27.48 6,297.38 26.50 6,143.56 26.05

Employee cost (930.04) (3.68) (820.92) 3.45 (735.52) (3.12)

Power & Fuel Cost (137.46) (0.54) (128.18) (0.54) (112.66) (0.48)

Selling , Admi& Other exp (2,339.09) (9.25) (2,025.33) (8.52) (1,647.36) (6.98)


446.38 1.77 398.38 1.66 347.46 1.47

PBDIT 3986.44 15.77 3,721.33 15.66 3,995.48 16.94

Depreciation 1,107.37 (4.38) (1,141.75) (4.80) (1,097.34) (4.65)


2,879.07 11.39 2,579.58 10.85 2,898.14 12.29

Interest & Finance Charge (11.82) (0.05) (11.91) (0.05) (33.43) (0.14)

PBTEOT 2,867.25 11.34 2,567.67 10.80 2,864.71 12.15

(+)/(-) Extra ordinary item 0.00 0.00 0.00 0.00 0.00 0.00

PBT -Y 2,867.25 11.34 2,567.67 10.80 2,864.71 12.15

(+)/(-) Prior Year Adj 0.00 0.00 0.00 0.00 0.00 0.00

PBT 2,867.25 11.34 2,567.67 10.80 2,864.71 12.15

Tax (758.17) (3.00) (411.04) (1.73) (486.58) (2.06)

Net Profit/PAT 2,109.08 8.34 2,156.63 9.07 2,378.13 10.08

Common-Sized Analysis of Bajaj Auto Ltd. & Hero Motocorp Ltd.

Profit & Loss Account Net sales: Growth in Hero Motocorp 6.34% while in Bajaj Auto only

0.76%.

Material cost as a Percentage of net sales more or less in the same ratio in both the companies. However it decreased by 2.91% in the case of Bajaj Auto while 1.02% in the case of Hero Motocorp.

Expenses other than materials cost are much higher in Bajaj Auto as against Hero Motocorp. However hero Motorcorp is much more cost efficient than Bajaj Auto as its expenses are around 22.14% less than Bajaj Auto.

Other operating income is 3.51% in 2013-14 & 3.98% in 2012-13 in case of Bajaj auto while remained more or less stagnant (1.77% &1.66%) in case of hero motocorp ltd.

Result: PBDIT down in both the cases but downfall much more in case of Bajaj auto (23.88% against 22.16%) while just 15.77% against 15.66% in case of hero motocorp ltd.

Depreciation cost as a % of net sales more or less in the same ratio in both the companies. Both have been able to reduce it in 2013-14.

Interest & finance charges negligible in Baja auto as against 0.05% for the two years in case of hero motocorp ltd.

Result: Decline in PBT to 22.99% as against 22.33% last year. PBT at 11.34% in the year 20.13-14 & 10.80 % in the year 2012-13 in case of hero motocorp ltd.

Overall, despite the decline in PAT, Bajaj auto’s net profit margin at 16.09% is way ahead of just 8.34% of hero motocorp .Bajaj auto is thus a far more profitable company than hero motocorp ltd.

COMMON – SIZED BALANCE SHEET OF BAJAJ AUTO LTD AS AT 31ST MARCH 2014

PARTICULARS Mar '14

COMMON SIZE %

Mar '13 COMMON SIZE %

Mar '12 COMMON SIZE %


Sources Of Funds

Total Share Capital 289.37 2.99 289.37 2.99 289.37 2.99

Equity Share Capital 289.37 2.99 289.37 2.99 289.37 2.99

Share Application Money 0.00 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00 0.00

Reserves 9,318.65 96.40 7,612.58 95.48 5,751.70 93.70

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 0.00

Networth 9,608.02 99.40 7,901.95 99.11 6,041.07 98.41

Secured Loans 0.00 0.00 0.00 0.00 0.00 0.00

Unsecured Loans 57.74 0.60 71.27 0.89 97.48 1.59

Total Debt 57.74 0.60 71.27 0.89 97.48 1.59

Total Liabilities 9,665.76 100 7,973.22 100 6,138.55 100

Application Of Funds

Gross Block 4,077.04 42.18 3,828.85 48.02 3,425.94 55.81

Less: Accum. Depreciation 2,071.00 21.43 2,024.42 25.39 1,914.33 31.19

Net Block 2,006.04 20.75 1,804.43 22.63 1,511.61 24.62

Capital Work in Progress 144.06 1.49 293.55 3.68 343.15 5.59

Investments 8,549.63 88.45 6,430.48 80.65 4,882.81 79.54

Inventories 639.72 6.62 636.28 7.98 678.53 11.05

Sundry Debtors 796.21 8.24 767.58 9.63 423.20 6.89

Cash and Bank Balance 495.48 5.13 558.86 7.00 446.49 7.27

Total Current Assets 1,931.41 19.98 1,962.72 24.62 1,548.22 25.22

Loans and Advances 2,116.46 21.90 1,987.44 24.93 1,744.82 28.42

Fixed Deposits 0.00 0.00 0.00 0.00 1,208.36 19.68

Total CA, Loans &

Advances 4,047.87

41.88 3,950.16

49.54 4,501.40

73.33

Deffered Credit 0.00 0.00 0.00 0.00 0.00 0.00

Current Liabilities 3,108.15 32.16 2,762.93 34.65 2,925.53 47.66

Provisions 1,973.69 20.42 1,742.47 21.85 2,174.89 35.43

Total CL & Provisions 5,081.84 52.58 4,505.40 56.51 5,100.42 83.09

Net Current Assets -1,033.97 -10.70 -555.24 -6.96 -599.02 -9.76

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 0.00

Total Assets 9,665.76 100 7,973.22 100 6,138.55 100

COMMON-SIZED BALANCE SHEET OF HERO MOTOCORP AS AT 31ST MARCH 2014

PARTICULARS Mar’14 Common

Size%

Mar’13 Common Size%

Mar’12 Common Size% 12 mths 12mths 12mths

Sources of fund

Total share Capital 39.94 0.71 39.94 0.75 39.94 0.75

Equity Share Capital 39.94 0.71 39.94 0.75 39.94 0.75

Share Application Money 0 0 0 0 0 0

Preference Share Capital 0 0 0 0 0 0

Reserves 5599.93 100.0 4966.30 93.55 4249.89 80.41

Revaluation Reserves 0 0 0 0 0 0

Net worth 5599.87 100 5006.24 94.30 4289.83 81.17

Secured loan 0 0 302.16 5.69 994.85 18.82

Unsecured Loan 0 0 0 0 0 0

Total Debt 0 0 302.16 5.69 994.85 18.82

Total liabilities 5599.87 100 5308.40 100 5284.68 100

Application of Fund

Gross Block 3761.52 67.17 4427.29 83.40 6308.26 119.36

Less: Accum Depreciation 1518.27 27.11 1356.31 25.55 2522.75 47.73

Net Block 2243.25 40.05 3070.98 57.85 3785.51 71.63

Capital Work in Progress 854.11 15.25 62.09 1.16 193.95 3.67 Investments 4088.77 73.01 3623.83 68.26 3964.26 75.01

Inventories 669.55 11.95 636.76 11.99 675.57 12.78

Sundry debtors 920.58 16.43 665.0 12.52 272.31 5.15

Cash and Bank Balance 117.50 2.09 181.04 3.41 56.10 1.06

Total current Asset 1707.63 30.49 1482.80 27.93 1003.98 18.99

Loans and advances 1203.54 21.49 1401.95 26.41 926.99 17.54

Fixed Deposit 0 0 0 0 20.72 0.39

Total CA, Loans & Advances 2911.17 51.98 2884.75 54.34 1951.69 36.93

Deferred Credit 0 0 0 0 0 0

Current Liabilities 2903.12 51.84 2893.39 54.50 3520.66 66.62

Provision 159.31 2.84 1439.86 27.12 1090.07 20.62

Total CL &Provision 4497.43 80.31 4333.25 81.63 4610.73 87.24

Net Current Assets -1586.26 -28.32 -1448.50 -27.28 -2659.04 -50.31

Miscellaneous Expense 0 0 0 0 0 0

Total Assets 5599.87 100 5308.40 100 5284.68 100

Common-Sized Analysis- Balance Sheet Bajaj auto bigger a company than hero motocorp. Its balance sheet is

9665.76 crores as against a meager 5599.87 crores of hero motocorp.

Hero motocorp’s equity went down to 100% of its total resources as at 2013-14 as against 94.30% last year due to increase in loan funds from 5.69% to 18.89% in 2012-13. Bajaj auto equity’s far higher than hero motocorp.

Out of total resources 40.05% of net fixed assets in case of hero motocorp & 20.75% in case of Bajaj auto are both turning over net sales of rs100 each.

Investment at 88.45% in case of Bajaj auto is way ahead of 73.01% of hero motopcorp. Bajaj auto is sitting on a war chest & will be able to enchash any business opportunity.

Inventories of Bajaj auto at the level of just 6.62% as against 11.95% in case of hero motocorp speak for efficient inventory management of the former.

Bajaj auto has net current liabilities as against net current assets in case of hero motocorp. It is making money out of non-interest bearing outstanding of its supplier.

Ultimately Bajaj auto emerges to be a highly solvent & efficiently managed company.

TREND ANALYSIS OF PROFIT & LOSS ACCOUNT OF BAJAJ AUTO LTD FOR THE YEAR ENDED 31ST MARCH 2014

PARTICULARS Year 2012 (RS IN CRORE)

Year 2013 (RS IN CRORE)


Year 2012 TREND %

Year 2013 TREND %

Year 2014 TREND %

Gross Sales 20,475.74 19,997.25 20,149.51 100 97.66 98.41

Excise Duty (959.09) 0.00 0.00 100 0.00 0.00

Net Sales 19,516.65 19,997.25 20,149.51 100 102.46 103.24

Materials Cost (14,580.24) (14,761.83) (14,289.20) (100) (101.25) (98.00)

(+)/(-) Stock Adj 94.15 (24) 18.90 100 25.49 20.07

Other manufacturing exp

73.76 0.00 0.00 100 0.00 0.00


(49.43) 0.00 0.00 100 0.00 0.00

COGS (14,510.42) (14,785.83) (14,270.30) (100) (101.90) (98.35)

GP ( Net Sales – COGS)

5,006.23 5,211.42 5,879.31 100 104.10 117.44

Employee cost (541.04) (639.48) (726.58) (100) 118.19 134.29

Power & Fuel Cost (101.85) (121.33) (106.16) (100) 119.13 104.23

Selling , Admi& Other exp

(627.43) (815.36) (940.73) (100) 129.95 149.93


413.66 795.49 706.41 100 192.31 170.77

PBDIT 4,149.57 4,430.74 4,812.15 100 106.78 115.97

Depreciation (147.76) (163.97) (179.61) (100) (110.97) (121.55)


4,001.81 4,266.77 4,632.54 100 106.62 115.76

Interest & Finance Charge

(22.24) (0.54) (0.49) (100) (2.43) (2.20)

PBTEOT 3,979.57 4,266.23 4,632.05 100 107.20 116.40

(+)/(-) Extra ordinary item

46.60 0.00 0.00 100 0.00 0.00

PBT 4,026.17 4,266.23 4,632.05 100 105.96 115.05

Tax (1,022.12) (1,222.66) (1,388.73) 100 119.62 135.87

Net Profit/PAT 3,004.05 3,043.57 3,243.32 100 101.32 107.67

TREND ANALYSIS OF PROFIT & LOSS ACCOUNT OF MOTOCORP LTD FOR THE YEAR ENDED 31ST MARCH 2014




Year 2012 TREND %

Year 2013 TREND %

Year 2014 TREND %

Gross Sales 25252.98 23768.11 25275.47 100 94.12 100.09

Excise Duty 1666.18 0 0 100 0 0

Net Sales 23586.8 23768.11 25275.47 100 100.77 107.16

Materials Cost (17485.65) (17470.73) (18320.46) (100) 99.91 104.77

(+)/(-) Stock Adj 94.03 0 (8.36) 100 0 8.89

Other manufacturing exp

(51.62) 0 0 100 0 0


0 0 0 0 0 0

COGS (17443.24) (17470.73) (18328.82) (100) 100.16 105.08

GP ( Net Sales – COGS)

6143.56 6297.38 6946.65 100 102.50 113.07

Employee cost (735.52) (820.92) (930.04) (100) 111.61 126.45

Power & Fuel Cost (112.66) (129.18) (137.46) (100) 114.66 122.01

Selling , Admi& Other exp

(1647.36) (2025.33) (2339.09) (100) 122.94 141.99


347.46 398.38 446.38 100 114.65 128.47

PBDIT 3995.48 3721.33 3986.44 100 93.14 99.77

Depreciation (1097.34) (1141.75) (1107.37) (100) 104.05 100.91


2898.14 2579.58 2879.07 100 89.01 99.34

Interest & Finance Charge

(33.43) (11.91) (11.82) (100) 35.63 35.36

PBTEOT 2864.71 2567.67 2867.25 100 89.63 100.09

(+)/(-) Extra ordinary item

0 0 0 0 0 0

PBT 2864.71 2567.67 2867.25 100 89.63 100.09

Tax (486.58) (411.04) (758.17) (100) 84.48 155.82

Net Profit/PAT 2378.13 2156.63 2109.08 100 90.69 88.69

TREND ANALYSIS OF BALANCE SHEET OF BAJAJ AUTO LTD AS AT 31ST MARCH 2014




Year 2012 TREND %

Year 2013 TREND %

Year 2014 TREND %

Sources Of Funds

Total Share Capital 289.37 289.37 289.37 100 100 100

Equity Share Capital 289.37 289.37 289.37 100 100 100

Share Application Money 0.00 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00 0.00

Reserves 5751.70 7,612.58 9,318.65 100 132.35 162.02

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 0.00

Net worth 6,041.07 7,901.95 9,608.02 100 130.80 159.05

Secured Loans 0.00 0.00 0.00 0.00 0.00 0.00

Unsecured Loans 97.48 71.27 57.74 100 73.11 59.23

Total Debt 97.48 71.27 57.74 100 73.11 59.23

Total Liabilities 6,138.55 7,973.22 9,665.76 100 129.89 157.46


Gross Block 3,425.94 3,828.85 4,077.04 100 111.76 119.01

Less: Accum. Depreciation 1,914.33 2,024.42 2,071.00 100 105.75 108.18

Net Block 1,511.61 1,804.43 2,006.04 100 119.37 132.71

Capital Work in Progress 343.15 293.55 144.06 100 85.55 41.98

Investments 4882.81 6,430.48 8,549.63 100 131.70 175.10

Inventories 678.53 636.28 639.72 100 93.77 94.28

Sundry Debtors 423.20 767.58 796.21 100 181.38 188.14

Cash and Bank Balance 446.49 558.86 495.48 100 125.17 110.97

Total Current Assets 1,548.22 1,962.72 1,931.41 100 126.77 124.75

Loans and Advances 1,744.82 1,987.44 2,116.46 100 113.91 121.30

Fixed Deposits 1,208.36 0.00 0.00 100 0.00 0.00

Total CA, Loans & Advances

4,501.40 3,950.16 4,047.87 100 87.75 89.92

Deffered Credit 0.00 0.00 0.00 0.00 0.00 0.00

Current Liabilities 2,925.53 2,762.93 3,108.15 100 94.44 106.24

Provisions 2,174.89 1,742.47 1,973.69 100 80.12 90.75

Total CL & Provisions 5,100.42 4,505.40 5,081.84 100 88.33 99.64

Net Current Assets -599.02 -555.24 -1,033.97 -100 -92.69 -172.61

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 0.00

Total Assets 6,138.55 7,973.22 9,665.76 100 129.89 157.46

TREND ANALYSIS OF BALANCE SHEET OF HERO MOTOCORP LTD AS AT 31ST MARCH 2014




Year 2012 TREND %

Year 2013 TREND %

Year 2014 TREND %

Sources Of Funds

Total Share Capital 39.94 39.94 39.94 100 100 100

Equity Share Capital 39.94 39.94 39.94 100 100 100

Share Application Money 0 0 0 0 0 0

Preference Share Capital 0 0 0 0 0 0

Reserves 4249.89 4966.30 5599.93 100 116.86 131.77

Revaluation Reserves 0 0 0 0 0 0

Net worth 4289.83 5006.24 5599.87 100 116.70 131.77

Secured Loans 994.85 302.16 0 100 30.37 0

Unsecured Loans 0 0 0 0 0 0

Total Debt 994.85 302.16 0 100 30.37 0

Total Liabilities 5284.68 5308.40 5599.87 100 100.45 105.96


Gross Block 6308.26 4427.29 3761.52 100 70.18 59.63

Less: Accum. Depreciation 2522.75 1356.31 1518.27 100 53.76 60.18

Net Block 3785.51 3070.98 2243.25 100 81.12 59.26

Capital Work in Progress 193.95 62.09 854.11 100 32.01 440.38

Investments 3964.26 3623.83 4088.77 100 82.33 103.14

Inventories 675.57 636.76 669.55 100 94.26 99.11

Sundry Debtors 272.31 665.0 920.58 100 244.21 338.06

Cash and Bank Balance 56.10 181.04 117.50 100 322.71 209.45

Total Current Assets 1003.98 1482.80 1707.63 100 147.69 170.09

Loans and Advances 926.99 1401.95 1203.54 100 151.24 129.83

Fixed Deposits 20.72 0 0 100 0 0

Total CA, Loans & Advances

1951.69 2884.75 2911.17 100 147.81 149.16

Deffered Credit 0 0 0 0 0 0

Current Liabilities 3520.66 2893.39 2903.12 100 82.27 82.46

Provisions 1090.07 1439.86 1594.31 100 132.09 146.26

Total CL & Provisions 4610.73 4333.25 4497.43 100 93.98 97.54

Net Current Assets (2659.04) (1448.50) (1586.26) 100 54.47 59.66

Miscellaneous Expenses 0 0 0 0 0 0

Total Assets 5284.68 5308.40 5599.87 100 100.45 105.96

Charts for Trend Analysis

96

98

100

102

104

106

108

2012 2013 2014

Net Sales

Net

Sales of

Bajaj

Net

Sales of

Hero 94

96

98

100

102

104

106

2012 2013 2014

COGS

COGS of

Bajaj

COGS of

Hero

90

95

100

105

110

115

120

2012 2013 2014

GP

GP of

Bajaj

GP of

Hero

0

20

40

60

80

100

120

140

2012 2013 2014

PBDIT

PBDIT of

Bajaj

PBDIT of

Hero

0

50

100

150

2012 2013 2014

PBT

PBT of

Bajaj

PBT of

Hero

0

20

40

60

80

100

120

2012 2013 2014

Net Profit/PAT

Net

Profit/P

AT of

Bajaj

Net

Profit/P

AT of

Hero

0

20

40

60

80

100

120

2012 2013 2014

Total Debt

Total

Debt of

Bajaj

Total

Debt of

Hero 0

50

100

150

200

2012 2013 2014

Total Liabilities

Total

Liabilitie

s of

Bajaj

Total

Liabilitie

s of

Hero

0

50

100

150

2012 2013 2014

Net Block

Net

Block of

Bajaj

Net

Block of

Hero 0

50

100

150

200

2012 2013 2014

Investments

Investm

ents of

Bajaj

Investm

ents of

Hero

0

50

100

150

200

2012 2013 2014

Net Current Assets

Net

Current

Assets

of Bajaj

Net

Current

Assets

of Hero0

50

100

150

200

2012 2013 2014

Total Assets

Total

Assets

of Bajaj

Total

Assets

of Hero

Interpretation of Trend Analysis

By comparing and analyzing above table, Bajaj having upward trend in more

components as compare to Hero. So, performance of is Bajaj is better than Hero.

Components Bajaj Hero Which is better

Net Sales Upward Trend Upward trend Hero

COGS Downward Trend Upward Trend Bajaj

Gross Profit Upward Trend Upward Trend Bajaj

PBDIT Upward Trend Upward Trend Bajaj

PBT Upward Trend Upward Trend Bajaj

Net Profit(PAT) Upward Trend Upward Trend Bajaj

Total Debt Downward Trend Downward Trend Hero

Total Liabilities Downward Trend Downward Trend Hero

Net Block Upward Trend Downward Trend Bajaj

Investment Upward Trend Upward Trend Bajaj

Net Current Asset

Upward Trend Upward Trend Bajaj

Total Asset Upward Trend Upward trend Bajaj

RATIO ANALYSIS OF BAJAJ AUTO LTD

PARTICULARS COMPUTATION OF RATIOS

2014 2013 2012

1. Gross Profit ratio= Gross Profit/ Net Sales*100

5879.21/20,149.51 =29.18%

5211.42/19,997.25 =26.06%

5006.23/19,516.25 =25.65%

2. Operating Profit Ratio=

Operating profit/ Net Sales*100

4,632.54/20,149.51

=22.99%

4,266.77/19,997.25

=21.34%

4,001.81/19,516.25

=20.51%

3. Net Profit Ratio= Net Profit/Net Sales*100

3,243.32/20,149.51 =16.10%

3,043.57/19,997.25 =15.22%

3,004.05/19,516.25 =15.39%

4.Equity ratio= Equity / Total Capital Employed (Where, Total capital Employed = Debt + Equity)

289.37/386.85 =0.75:1

289.37/360.64 =0.80:1

289.37/347.11 =0.83:1

5. Debt – Equity Ratio= Debt/Equity

57.74/289.37 =0.2:1

71.27/289.37 =0.25:1

97.48/289.37 =0.34:1

6. Current Ratio= Current Assets/Current

Liabilities

1931.41/3108.15 =0.62:1

1962.72/2762.93 =0.71:1

1548.22/2925.53 =0.53:1

7. Absolute Liquidity Ratio= Cash/Current Liabilities

495.48/3,108.15 =0.16:1

558.86/2,762.93 =0.20:1

446.49/2,925.53 =0.15:1

8. Proprietary Ratio=

Proprietary Funds/Total Assets

(Where, proprietary Fund = Equity & Total Assets)

2,150.1/1962.72

=1.09:1

2,097.98/1962.72

=1.07:1

1,854.76/1,548.22

=1.20:1

9.Fixed Asset Turnover Ratio=

Net Sales/Fixed Assets

20,149.51/2150.1 =9.37 times

19,997.25/2097.98 =9.53 times

19,516.65/1854.76 =10.52 times

10.Working Capital Turnover Ratio= Net Sales/Working Capital (Where , Working Capital =

CA- CL)

19,516.65/1176.74 =16.59 times

19,997.25/800.21 =24.96 time

19,516.65/1377.31 =14.17 times

11. Return On Equity (ROE)= PAT/Equity*100

3243.32/289.37 =1120.82%

3043.57/289.37 =1051.79%

3004.05/289.37 =1038.13%

RATIO ANALYSIS OF HERO MOTOCORP

PARTICULARS COMPUTATION OF RATIOS

2014 2013 2012 1. Gross Profit ratio=

Gross Profit/ Net Sales*100

5879.31/25275.47

=23.26%

5211.42/23768.11

=21.93%

5006.23/23586.8

=21.22%

2. Operating Profit Ratio= Operating profit/ Net

Sales*100

4632.54/25275.47 =18.32%

4266.77/23768.11 =17.95%

4001.81/23586.8 =16.97%

3. Net Profit Ratio= Net Profit/Net Sales*100

3243.32/25275.47 =12.83%

3043.57/23768.11 =12.81%

3004.05/23586.8 =12.74%

4.Equity ratio= Equity / Total Capital Employed (Where, Total capital Employed = Debt + Equity)

5599.87/5599.87 =1:1

5006.24/5308.40 =0.94:1

4289.83/5284.68 =0.81:1

5. Debt – Equity Ratio= Debt/Equity

0/5599.87 =0

302.16/5006.24 =0.06:1

994.85/4249.89 =0.23:1

6. Current Ratio= Current Assets/Current Liabilities

1707.63/2903.12 =0.90:1

1482.80/2893.39 =0.51:1

1003.98/3520.66 =0.29:1

7. Absolute Liquidity Ratio= Cash/Current Liabilities

117.50/2903.12 =0.41:1

181.04/2893.39 =0.63:1

56.10/3520.66 =0.02:1

8. Proprietary Ratio= Proprietary Funds/Total

Assets (Where, proprietary Fund =

Equity & Total Assets)

5599.87/5599.87 =1:1

5006.24/5308.40 =0.94:1

4289.83/5284.68 =0.81:1

9.Fixed Asset Turnover Ratio= Net Sales/Fixed Assets

25275.47/2243.25 =11.26 times

23768.11/3070.98 =7.74 times

23586.8/3785.51 =6.23 times

10.Working Capital Turnover Ratio= Net Sales/Working Capital (Where , Working Capital = CA- CL)

25275.47/1195.49 =21.14 times

23768.11/1410.59 =16.85 times

23586.8/2516.68 =9.37 times

11. Return On Equity (ROE)=

PAT/Equity*100

3243.32/5599.87

=58%

3043.57/5006.24

=61%

3004.05/4289.83

=70%

Interpretation of Ratio- Year 2012

Name of Ratio Idol Ratio Bajaj Ratio Hero Ratio Which Is Better

Gross Profit Ratio

Higher – Better 25.65% 21.22% Bajaj

Operating Profit Ratio


Net Profit Ratio Higher – Better 15.39% 12.74% Bajaj

Equity Ratio 0.83:1 0.81:1

Bajaj

Debt-Equity

Ratio

2:1 0.34:1 0.23:1 Bajaj

Current Ratio 2:1 0.53:1 0.29:1 Bajaj

Absolute Liquidity Ratio

1:1 0.15:1 0.02:1 Bajaj

Proprietary Ratio

1:2 1.20:1 0.81:1 Bajaj

Fixed Asset Turnover Ratio

5 times Higher – Better

utilization

10.52 Times 6.23 times Bajaj

Working Capital

Turnover Ratio

Higher-efficient

utilization very high ratio is

not a good situation

14.17 Times 9.37 times Bajaj

Return to Equity Ratio

Higher – Better 1038.31% 70% Bajaj

By comparing and analyzing above table, i.e. Ratio in year 2012, Bajaj was in good position

as compare to Hero.



Gross Profit

Ratio





Equity Ratio 0.80:1 0.94:1 Hero

Debt-Equity Ratio

2:1 0.25:1 0.06:1 Bajaj

Current Ratio 2:1 0.71:1 0.51:1 Bajaj

Absolute

Liquidity Ratio

1:1 0.20:1 0.63:1 Hero

Proprietary Ratio

1:2 1.07:1 0.94:1 Bajaj

Fixed Asset

Turnover Ratio

5 times

Higher – Better

utilization

9.53 times 7.74 times Bajaj

Working Capital Turnover Ratio

Higher-efficient utilization

very high ratio is not a good

situation

24.96 time 16.85 times

Bajaj

Return to Equity Ratio


By comparing and analyzing above table, i.e. Ratio in year 2013, Bajaj was in good position

as compare to Hero.



Gross Profit Ratio





Equity Ratio 0.75:1 1:1 Hero

Debt-Equity Ratio

2:1 0.2:1 0:1 Hero

Current Ratio 2:1 0.62:1 0.90:1 Hero

Absolute Liquidity Ratio

1:1 0.16:1 0.41:1 Hero

Proprietary

Ratio

1:2 1.09:1 1:1 Bajaj

Fixed Asset Turnover Ratio

5 times Higher – Better

utilization

9.37 times 11.26 times Hero

Working Capital

Turnover Ratio

Higher-efficient

utilization very high ratio is

not a good situation

16.59 times 21.14 times Hero

Return to

Equity Ratio


By comparing and analyzing above table, i.e. Ratio in year 2014, Bajaj is in good some aspects and some time hero is good in some aspects .

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