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1. SUMMER INTERNSHIP REPORT ON FINANCIALANALYSIS FOR
MARUTI SUZUKI INDIA LTD
CHETAN DHAMI
(20031E0064)
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABA
SCHOOL OF MANAGEMENT STUDIES
(Established by Act No. 30 of 2008)
Kukatpally, Hyderabad -500 085, TELANGANA, India

2. CONTENTS
• INTRODUCTION
• COMPANY PROFILE
• RESEARCH METHODOLOGY
•

3. INTRODUCTION
• Financial analysis is the process of evaluating businesses, projects, budgets, and other finance- related
transactions to determine their performance and suitability
• If conducted internally, financial analysis can help fund managers make future businessdecisions or review
historical trends for past successes.
• If conducted externally, financial analysis can help investors choose the best possibleinvestment
opportunities.
• Fundamental analysis and technical analysis are the two main types of financial analysis.

4. COMPANY PROFILE
• Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be honored with anISO 9000:2000
certificate. The company has a joint venture with Suzuki Motor Corporation ofJapan. It is said that the
company takes only 14 hours to make a car. Few of the popular modelsof MUL are Alto, Baleno, Swift,
Wagon-R and Zen.

5. Year of Establishment February 1981
Vision "The Leader in The Indian Automobile Industry, Creating Customer Delight and
Shareholder's Wealth; A
pride of India."
Industry Automotive - Four Wheelers
Listings & its codes
BSE - Code: 532500 NSE - Code: MARUTI
Bloomberg: MUL@IN
Reuters: MRTI.BO
Joint Venture With Suzuki Motor Company, now Suzuki Motor
Corporation, of Japan in October 1982.
Registered & CorporateOffice 11th Floor, Jeevan Prakash 25, Kasturba Gandhi Marg New
Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Fax: +(91)-(11)-23318754, 23713575Telex: 031-65029 MUL IN
Works
Palam Gurgaon RoadGurgaon -122015 Haryana, India
Tel.: +(91)-(124)-2340341-5, 2341341-5
Website www.marutiudyog.com

6. RESEARCH METHODOLOGY
OBJECTIVES:
• To study and understand the financial statement analysis of Maruti Suzuki company
• To analysis and report about the correlation among revenues and profits of the company.
• To suggest decision regarding investments
SCOPE OF STUDY:
• To clearly analyze the financial part of the company.
• Investment regarding decisions

7. DATAANALYSIS(P&L ACCOUNT,BALANCE SHEET,CASH FLOW)
Year-end
March
Mar16 Mar17 Mar18 Mar19 Mar20
Total revenues
110,474 133,357 147,531 169,996 192,764
YoY growth(%) 23.0 20.7 10.6 15.2 13.4
Operatingexpenses 101,169 119,295 131,265 150,548 170,278
Raw material
expenses
70,265 85,174 92,170 105,529 119,376
Excise andtaxes 19,384 23,807 27,009 31,187 35,372
Trading purchases 0 0 0 0 0
Salaries andwages 2,975 1,960 2,287 2,766 3,137
Manufacturing
expenses
8,545 8,354 9,799 11,065 12,393
Managerial
remuneration
0 0 0 0 0
Operatingprofit 9,305 14,062 16,266 19,448 22,486

8. Operating margin (%) 8.4 10.5 11.0 11.4 11.7
Treasuryincome 3,777 3,914 4,292 4,500 4,700
EBDITA 13,081 17,976 20,558 23,948 27,186
EBDITA margin(%) 11.4 13.1 13.5 13.7 13.8
Depreciation 4,949 4,568 2,854 3,487 4,525
EBIT
EBIT margin(%)
8,132
7.1
13,408
9.8
17,704
11.7
20,461
11.7
22,661
Interest 434 360 204 376 344
Pre-tax profit 7,698 13,047 17,500 20,387 22,617
Pre-tax margin(%) 6.7 9.5 11.5 11.7 11.5
Tax provision 2,277 4,513 5,609 6,524 7,237
Effective taxrate (%) 29.6 34.6 32.1 32.0 32.0
Adjusted netprofit 5,421 8,535 11,890 13,863 15,380
YoY growth(%) 270.4 57.4 39.3 16.6 10.9
+(-) Extra-ordinary
Inc/(Exp)
0 0 0 0 0
Reported netprofit
5,421 8,535 11,890 13,863 15,380

9. Profit Loss Account
Year-end March
Mar 16
Mar 17
Mar 18
Mar 19
Mar 20

10. Balance sheet
Period Ending Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Assets
Current Assets
Cash And Cash Equivalents 1,627,000 19,868,000 3,901,000 14,374,000
Short Term Investments 52,733,000 11,682,000 10,946,000 8,802,000
Net Receivables 12,368,000 15,005,000 8,860,000 8,601,000
Inventory 12,276,000 9,213,000 10,483,000 7,123,000
Other Current Assets 12,961,000 12,319,000 8,845,000 8,840,000
Total Current Assets 91,965,000 68,087,000 43,035,000 47,740,000
Long Term Investments 21,235,000 21,090,000 41,703,000 26,344,000
Deferred Long Term Asset Charges 838,000 791,000 998,000 1,110,000

11. Total Assets 169,673,000 140,805,000 126,875,000 104,724,000
Liabilities
Current Liabilities
Accounts Payable 23,461,000 25,972,000 17,080,000 9,256,000
Short/Current Long Term Debt 9,730,000 8,133,000 12,985,000 7,633,000
Other Current Liabilities 11,655,000 8,081,000 7,244,000 14,263,000
Total Current Liabilities 41,908,000 37,418,000 32,466,000 25,366,000
Long Term Debt 3,640,000 5,345,000 5,395,000 6,471,000
Other Liabilities - - - -
Deferred Long Term Liability Charges - - - -
Minority Interest - - - -
Negative Goodwill - - - -
Total Liabilities 47,847,000 45,152,000 40,604,000 34,659,000
Stockholders' Equity
Misc Stocks Options Warrants - - - -
Redeemable Preferred Stock - - - -
Preferred Stock - - - -

12. Common Stock 5,691,000 5,691,000 5,691,000 5,691,000
Retained Earnings 115,866,000 91,640,000 80,549,000 64,243,000
Treasury Stock 269,000 (1,678,000) 31,000 131,000
Capital Surplus - - 1,000 -
Other Stockholder Equity - - - -
Total Stockholder Equity - - - -
Net Tangible Assets - - - -

13. Ratio analysis
LIQUIDITY RATIO
YEARS CURRENT ASSETS CURRENT LIABILITY RATIO
2020 91965000 41908000 2.194449747
2019 68087000 37418000 1.819632263
2018 43035000 32466600 1.325516069
2017 47740000 25366000 1.882046834
INTERPRETATION: theoretically the ratio of current assets and current liabilities
should be equal andgreater than 1
Here in 2020 the liquidity ratio was 2.19 it means the debt of the company is less

14. Period Ending Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 201
Net Income 26,247,000 12,274,000 17,899,000 15,883,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 8,414,000 7,165,000 5,727,000 2,755,000
Adjustments To Net Income - - - -
Changes In Accounts Receivables 1,294,000 (2,801,000) 969,000 (1,115,000)
Changes In Inventories (3,063,000) 1,270,000 (3,360,000) 1,771,000
Changes In Other Operating Activities 262,000 974,000 795,000 1,756,000
CASH FLOW

15. Total Cash Flow From Operating Activities 30,121,000 12,630,000 19,058,000 18,704,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (13,804,000) (17,060,000) (17,430,000) (11,991,000)
Total Cash Flows From Investing Activities (49,117,000) 8,528,000 (30,823,000) (22,837,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid - - - -
Other Cash Flows from Financing Activities (35,808,000) 25,517,000 (13,464,000) (10,920,000)
Total Cash Flows From Financing Activities 755,000 (5,191,000) 1,292,000 (1,367,000)
Change In Cash and Cash Equivalents (18,241,000) 15,967,000 (10,473,000) (5,500,000)

16. CORREALTION ANALYSIS
Correlation between revenue and profits of Maruti Suzuki pvt ltd
REVENUE(cr) PROFIT(cr)
20 17
19 15
16 13
15 11
X dx=X-A dx^2 Y dy=Y-A dy^2 dxdy
20 1 1 17 2 4 2
19 0 0 151 0 0 0
16 -3 9 13 -2 4 6
15 -4 16 11 -3 9 12
TOTAL -6 26 -3 17 20
SOL:
Here we got r=0.94
Revenue and profits are highly
correlated

17. FINDINGS
Findings from profit and loss account
• The operating expenses in the profit and loss account suggests that it has bee increased from2016 to 2020
by almost 50%
• Raw materials expenses are also been increased rapidly.
• Excise and taxes are increased by 35%
• Manufacturing expenses are also been increased
Findings from balance sheet
• The liquidity ratio has been seen increasing from 2017-2020 in 2020 it was 2.19 whichindicates the
company has less debt
• Liabilities has been seen decreasing so it is suitable for investment
• Current assets of the company is increasing.

18. Findings from correlation:
• According to the correlation analysis revenue and profit and highly positively correlated whichmeans revenue
and profit are in the same direction

19. BIBLIOGRAPHY
• Kishore M ravi,(2007),financial management
• Taxmann allied services pvt ltd
• Pandey I.M (2006),Financial management