A

PROJECT REPORT
ON
FINANCIAL ANALYSIS
OF
BAJAJ MOTORS LTD., NARSINGPUR, GURGAON,
HARYANA
Submitted for partial fulfillment of requirement for the award of
degree
Of

Bachelor of Business Administration (II)

Of
MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Session 2010-13
Supervision By

Submitted by

Name: Gurmeet Sodhi

Name: Sandeep Sheoran

Designation:Asst. Professor

Roll No.1090110578

Department: Management

Enrollment No. 1073900578

BBA VI Semester

A
PROJECT REPORT
ON
FINANCIAL ANALYSIS
OF
BAJAJ MOTORS LTD., NARSINGPUR, GURGAON,
HARYANA
Submitted for partial fulfillment of requirement for the award of
degree
Of

Bachelor of Business Administration (II)

Of
MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Session 2010-13
Supervision By

Submitted by

Name: Gurmeet Sodhi

Name: Sandeep Sheoran

Designation:Asst. Professor

Roll No.1090110578

Department: Management

Enrollment No. 1073900578

BBA VI Semester

DECLARATION
I the undersigned solemnly declare that the report of the project work
entitled Financial Analysis of Bajaj Motors Ltd., is based my own work
carried out during the course of my study under the supervision of Miss
Gurmeet Sodhi.
I assert that the statements made and conclusions drawn are an outcome
of the project work. I further declare that to the best of my knowledge and
belief that the project report does not contain any part of any work which has
been submitted for the award of any other degree/diploma/certificate in this
University or any other University.

_____________
(Signature of the Candidate)
Name: Sandeep Sheoran
Roll No.:1090110578
Enrollment No.:107900578

CERTIFICATE BY GUIDE
This to certify that the report of the project submitted is the outcome of the
project work entitled Financial Analysis of Bajaj Motors Ltd. carried out by
Sandeep Sheoran bearing Roll No.:1090110578 & Enrollment No.:1073900578
Carried by under my guidance and supervision for the award of Degree in

Bachelor of Business Administration of

Maharshi Dayanand University,

Rohtak, Haryana.
To the best of the my knowledge the report
i)

Embodies the work of the candidate him/herself,

ii)

Has duly been completed,

iii)

Fulfils the requirement of the ordinance relating to the BBA (II)

degree of the University and

iv)

Is up to the desired standard for the purpose of which is submitted.

_______________________
(Signature of the Guide)
Name:Gurmeet Sodhi
Designation:Asst. Professor
Department:Management
Jaganath Institute Of Management Sciences
34,Ring Road,Lajpat Nagar IV,New Delhi-110024
The project work as mentioned above is hereby being recommended and
forwarded for examination and evaluation.

ACKNOWLEDGEMENT
I am grateful to Mr. DINESH BANSAL (FINANCE CONTROLLER) for being a constant
source of guidance during my training period. His support helped me to accomplish the
project.
I am very confident that this project will help me in my future.

Sandeep Sheoran
Roll. No.1090110578
BBA-B
JIMS, Lajpatnagar

LIST OF ABBREVIATIONS
1. BML- Bajaj Motors Limited
2. GDP- Gross Domestic Product
3. USD- U.S Dollar
4. SUV- Sports Utility Vehicle
5. MUV-Multi Utility Vehicle
6. R&D- Research and Development
7. M&M Group- Mahindra and Mahindra Group
8. DOL- Direct OnLine
9. NPR- Net Profit Ratio
10. EPS- Earning Per Share

Page No.
11
12
12
13
13
24
24
23
39
40

LIST OF TABLES
1.
2.
3.
4.
5.
6.
7.

Page No.
37
37
38
38
39
39
40

Current Ratio
Cash Ratio
Quick Ratio
Debt-Equity Ratio
Proprietary Ratio
Net Profit Ratio
Earnings Per Share

LIST OF FIGURES
Pie Charts

TABLE OF CONTENTS
CHAPTER
I
1.1
1.2

TITLE

INTRODUCTION
General Introduction about the sector
Industry profile
a. Origin and development of the industry
b. Growth and present status of the industry
c. Future of the industry

II
RESEARCH METHODOLOGY
2.1 Statement of research problem
2.2 Statement of research objectives
2.3 Research design and methodology

PAGE NO.
10

16

III
COMPANY PROFILE
Origin of the organization
Growth, Development & Present status of the Organization
Organization structure and organization chart
Product and service profile of the Organization
Market profile of the Organization

20

IV
DATA ANALYSIS AND INTERPRETATION
4.1 Data analysis
4.2 Summary of Findings
4.3 Questions-choices Graph-Interpretation

32

3.1
3.2
3.3
3.4
3.5

V
CONCLUSIONS AND SUGGESTIONS
5.1 Summary of learning experience
5.2 Conclusions and Recommendations

49

VI
DISCUSSIONS ON TRAINING
6.1 Students work profile (Role and Responsibilities)
6.2 Key learning from training

52

BIBLIOGRAPHY
APPENDIX

55
56

CHAPTER I: INTRODUCTION

INTRODUCTION
1.1 General introduction about Automobile sector
An automobile, auto car, motor car or car is a wheeled motor vehicle used
for transporting passengers, which also carries its own engine or motor. Most definitions of
the term specify that automobiles are designed to run primarily on roads, to have seating for
one to eight people, to typically have four wheels, and to be constructed principally for the
transport of people rather than goods.
The year 1886 is regarded the year of birth of the modern automobile - with the Benz PatentMotorwagen, by German inventor Carl Benz. Motorized wagons soon replaced animaldrafted carriages, especially after automobiles became affordable for many people when
the Ford Model T was introduced in 1908.
The term motorcar has formerly also been used in the context of electrified rail systems to
denote a car which functions as a small locomotive but also provides space for passengers
and baggage. These locomotive cars were often used on suburban routes by both interurban
and intercity railroad systems.
It was estimated in 2010 that the number of automobiles had risen to over 1 billion vehicles,
up from the 500 million of 1986. The numbers are increasing rapidly, especially
in China, India and other NICs.

The word automobile comes, via the French automobile from the Ancient Greek word
(auts, "self") and the Latin mobilis ("movable"); meaning a vehicle that moves itself. The
loanword was first adopted in English by The New York Times in 1899. The alternative
name car is believed to originate from the Latin word carrus or carrum ("wheeled vehicle"),
or the Middle English word carre("cart") (from Old North French), in turn these are said to
have originated from the Gaulish word karros (a Gallic Chariot).
1.2 INDUSTRY PROFILE
a) Origin and development of the industry
The automotive industry in India is one of the larger markets in the world and had previously
been one of the fastest growing globally, but is now seeing flat or negative growth rates.
India's passenger car and commercial vehicle manufacturing industry is the sixth largest in
the world, with an annual production of more than 3.9 million units in 2011. According to
recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer
in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy,
10

Canada, Mexico, Russia, Spain, France, and Brazil), grew 16 to 18 per cent to sell around
three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest
exporter of passenger, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand
to become Asia's third largest exporter of passenger cars.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the
second (after China) fastest growing automobile market in the world in that year. According
to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to
increase to 4 million by 2015, no longer 5 million as previously projected.
The majority of India's car manufacturing industry is based around three clusters in the south,
west and north. The southern cluster consisting of Chennai is the biggest with 35% of the
revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and
the northern cluster around the National Capital Region contributes 32%.[8] Chennai, with the
India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,Hindustan
Motors, Daimler, Caparo, and PSA Peugeot Citron is about to begin their operations by
2014. Chennai accounts for 60% of the country's automotive exports.
Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car
manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the
western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and
Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors
having assembly plants in the area. Nashik has a major base of Mahindra & Mahindra with a
UV assembly unit and an Engine assembly
unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.
Another emerging cluster is in the state of Gujarat with manufacturing facility of General
Motors in Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti
Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat.
Kolkata with Hindustan Motors,Noida with Honda and Bangalore with Toyota are some of
the other automotive manufacturing regions around the country.
b) Growth and present status of the industry
One of the largest automobile markets in
the world, India has some remarkable
facts to its credit which make it World
renowned. The Indian Auto Industry
has a bright future because of several
factors working towards increasing
demand for automobiles:

1. Rapid Urbanization: Currently only 21% of the population lives in the urban areas. Given
how India is performing, the figures are hoped to touch 35% by 2020 and 40% by 2030. ]
2. Rising per capita GDP: The per capita GDP of India increased from 1200 USD in 2011 to
11

almost 1330 USD in 2012. This is further expected cross the 2000 mark by 2015. Increasing
GDP would mean increased purchasing power and hence increased demand for automobiles
3. Overall growth of other industries: Industries are usually interdependent on each other.
The effect of expansion of other industries is bound to percolate to the automobile industry as
well. Since transport is a basic need of every industry, demand for automobiles will rise with
every positive change in an industry.
4. Car buyers getting younger: It is no more a hidden fact that India is one of the youngest
countries in the world with a median age of almost 26 years; much lower than the Worlds
biggest economies. It only shows that the work class constitutes majorly of young
individuals. The car buying age has been on a decline. Where a person aged 39 used to buy a
car in the year 2000, this age has gradually come down to 33 in 2010. It is only expected to
become lesser in the coming years.
5. Growing Middle class: With the middle class of India growing annually, benefits of this
sector are still untapped. It is the transition from the lower class to the middle class which
converts car into a need from a luxury.
Other factors like affordability, innovation, infrastructure facilities and price of fuel also
affect the demand for automobiles to a large extent. These challenges keep the automakers on
their toes all the time. With the middle class in India still growing annually, the benefits of
this sector are still untapped.
Recent Developments in the Industry:
Ford India: In the wake of increasing petrol prices, it has expanded its diesel engine
production capacity of its Chennai plant to keep pace with the changing demand. The plant
that had the capacity to produce 2.5 Lakh engines annually in 2010; shall now be able to
produce 3.4 lakh engines. It also has the capacity of producing 2 Lakh cars.
Isuzu Motors Limited (Japan): With a capital outlay of Rs. 1000 Crores, it is planning to
build a Greenfield project to target the small commercial vehicle and MUV segments.
Renault (French auto major): By launching it midsize SUV Duster in both petrol and
diesel variants, it has successfully entered the Indian SUV market. Renault has already
launched 3 more vehicles this year prior to this.
M and M Group: Mahindra and Mahindra Group after spending 4 years in the Indian 2
wheeler segment has launched its research and development (R&D) center for two-wheelers
in Pune with an investment of Rs 100 Crores.
MSIL (Indias largest auto maker): It shall merge the group unit Suzuki Powertrain India
Ltd with itself so that all the diesel manufacturing facilities are under the same management.
The merger will be conducted through share swap without any cash transaction.
Prominent Players in the Indian Automobile Industry:

12

These are the names which have a brilliant Pan India coverage. Apart from this, there are
brands which dominate a particular region of the country depending on their popularity in
that area. This can be studied from the above picture:
c) Future of the Industry
The future of Automobile Industry is so promising and cheerful that if the statistics go as
estimated, then, the share of Indian exports in the Global auto market will almost triple in the
years ahead. The overall automobile production in India would expand by 9.6 per cent in
2012-13. The Passenger Vehicle Market of India will sell almost 5 million vehicles by 20172018. The Indian Auto Exports will also grow and cross the 17 billion USD mark by 20152016.

And, there are factors which are demand determinants playing in favour of the Indian
automobile Industry like rising family Income, product innovations, demographics and
favourable duty structure; there is a lot which the industry is yet to see.

13

The future looks bright and being an entrepreneur, if someone is looking for opportunities in
this Industry, anything creative/ innovative related to the automobile industry is bound to
work.
And, there are factors which are demand determinants playing in favour of the Indian
automobile Industry like rising family Income, product innovations, demographics and
favourable duty structure; there is a lot which the industry is yet to see.
The future looks bright and being an entrepreneur, if someone is looking for opportunities in
this Industry, anything creative/ innovative related to the automobile industry is bound to
work.

14

CHAPTER II : RESEARCH
METHODOLOGY

15

2.1 Statement of research problem

Financial analysis (also referred to as financial statement analysis or accounting analysis)
refers to an assessment of the viability, stability and profitability of a business, sub-business
or project.
It is performed by professionals who prepare reports using ratios that make use of
information taken from financial statements and other reports. These reports are usually
presented to top management as one of their bases in making business decisions. Based on
these reports, management may:
Continue or discontinue its main operation or part of its business.
Make or purchase certain materials in the manufacture of its product;
Acquire or rent/lease certain machineries and equipment in the production of its goods;
Issue stocks or negotiate for a bank loan to increase its working capital;
Make decisions regarding investing or lending capital;
Other decisions that allow management to make an informed selection on various alternatives
in the conduct of its business.
Areas of Financial Analysis
Financial analysts often assess the firm's:
1. Profitability - its ability to earn income and sustain growth in both short-term and longterm. A company's degree of profitability is usually based on the income statement, which
reports on the company's results of operations;
2. Solvency - its ability to pay its obligation to creditors and other third parties in the longterm.
3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate
obligations;
Both 2 and 3 are based on the company's balance sheet, which indicates the financial
condition of a business as of a given point in time.
4. Stability- the firm's ability to remain in business in the long run, without having to sustain
significant losses in the conduct of its business. Assessing a company's stability requires the
use of both the income statement and the balance sheet, as well as other financial and nonfinancial indicators.
Financial analysts often compare financial ratios (of solvency, profitability, growth, etc.):
Past Performance - Across historical time periods for the same firm (the last 5 years for
example),
Future Performance - Using historical figures and certain mathematical and statistical
techniques, including present and future values, this extrapolation method is the main source
of errors in financial analysis as past statistics can be poor predictors of future prospects.
Comparative Performance - Comparison between similar firms.
Limitations of Financial Analysis
16

Comparing financial ratios is merely one way of conducting financial analysis. Financial
ratios face several theoretical challenges:
1. They say little about the firm's prospects in an absolute sense. Their insights about relative
performance require a reference point from other time periods or similar firms.
2. One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least
two ways. One can partially overcome this problem by combining several related ratios to
paint a more comprehensive picture of the firm's performance.
3. Seasonal factors may prevent year-end values from being representative. A ratio's values
may be distorted as account balances change from the beginning to the end of an accounting
period. Use average values for such accounts whenever possible.
4. Financial ratios are no more objective than the accounting methods employed. Changes in
accounting policies or choices can yield drastically different ratio values.
5. They fail to account for exogenous factors like investor behavior that are not based upon
economic fundamentals of the firm or the general economy (fundamental analysis).
All financial statements are essentially historically historical documents. They tell what has
happened during a particular period of time. However most users of financial statements are
concerned about what will happen in the future. Stockholders are concerned with future
earnings and dividends. Creditors are concerned with the company's future ability to repay its
debts. Managers are concerned with the company's ability to finance future expansion.
Despite the fact that financial statements are historical documents, they can still provide
valuable information bearing on all of these concerns.
Financial statement analysis involves careful selection of data from financial statements for
the primary purpose of forecasting the financial health of the company. This is accomplished
by examining trends in key financial data, comparing financial data across companies, and
analyzing key financial ratios.
2.2 Statement of research objectives
In todays highly competitive environment every organization is competing towards
achieving economy and efficiency into their operations with a faster processing rate.
So while facing these conditions it becomes quite imperative on the part of
organization to manage the system in a suitable and productive manner in all areas of
operations.
The study entitled, Financial analysis of BML is focused on evaluating the financial
soundness of the company through various financial ratios. The study is emphasized
on disclosing the position of BML with different point of view like it discloses
companys position with liquidity point of view, solvency point of view and
profitability point of view so that conclusions can be drawn regarding the financial
health of the organization. The stress is on key figures in the financial statements and
the significant relationship that exists between them.
So this study focuses on finding the solutions, which can make the system of the
organization comparatively more effective and proper.
17

2.3 Research design and methodology

RESEARCH DESIGN:
It is a descriptive and analytical research.
UNIVERSE:
Automobile industry.
SAMPLE SIZE:
Financial reports of last three years of the company.
DATA COLLECTION
The information needed for fulfilling the objective of the study is collected through
secondary sources of data, keeping in view, the time, cost and other sources availability.
Annual Reports & Records of the companies are mainly used for the purpose of the study.
Research Reports of survey conducted by the company.
Companies Journals and Various Websites.

18

CHAPTER III : COMPANY PROFILE

3.1 Origin of the organization

19

Bajaj Motors Limited was incorporated in 1986 and started its commercial production
in 1989. BAJAJ MOTORS was started as a machining unit with backward integration in
Forgings of Auto Components. We are into manufacturing of auto components mainly
precision engine & transmission components for Two Wheelers, Four Wheelers, Tractors and
other Heavy Machine Equipments.
UNITS:
Machining Unit - 1
Located on the Delhi-Jaipur Highway on
39 -40 milestone, Bajaj Motors Limited is
certified from TUV GmBH, Germany.
Since its inception in 1986, BAJAJ
MOTORS has its specialization in
Machining
of Auto
components specifically Precision Engine
Components.
Export Orientation is the hallmark of this
plant. This unit has started production
since March 2006.

Forging Unit
Fully Equipped with all facilities, The
Forging plant is located at Gurgaon. The
plant started its commercial production in
the Year 2001. It is a TS-16949, ISO14001 certified from TUV GmBH,
Germany.

Foundry Unit
Casting Plant of Bajaj Motors Ltd.
established in 2006, at Bhora Kalan,
Binola Industrial area, Gurgaon, India
spread over an area of 6 acres and is a
backward integration.
The specialization of Bajaj Motors
Casting Plant is Shell
Moulding and Green Sandcasting.

20

Machining Unit 2
Located at Pantnagar Industrial Area
(Uttrakhand), was started in 2007 and is
spread over an area of 5 Acres. It is
equipped with a Forging Plant and
Precision
Auto
Components
manufacturing.

Machining Unit 3
Located at Industrial Park IV in Haridwar
(Uttrakhand), was started in 2010. It is a
state of art Precision Auto Components
manufacturing Facility.

Machining Unit 4

Located at Sector -8 IMT Manesar,

Gurgaon.

3.2 Growth, Development & Present status of the Organization

21

VISION:
To attain World Class Excellency by demonstrating Value Added products to customers
Gross Turnover (USD Millions)

MISSION:
Focus on value based manufacturing
Fostering team work & enhancing the capability of the team
Continual Improvement
Total Elimination of wastes
Pollution Free & Safe Environment
MILESTONES:
.
Year
1989
1995
1998
2000
2004
2005
2006
2007
2010

Milestones
Start of Bajaj Motors Ltd.
Establishment of Current Location Bajaj Motors Ltd.
Introduction of Flexible Manufacturing Concept.
Establishment of Microtek Forgings as Backward Integration.
Started Export Activities.
Integrated Management System Certification of BML, from TUV, Germany.
Establishment of Ferrous Casting, as backward Integration.
IMS Certification for Microtek Forging. Established Aluminium Forging.
Plant at Pantnagar.
Plant at Haridwar for HHML.
22

2011
2012

New Dedicated Export Line for Machining in IMT Manesar, Gurgaon.

New Forging Plant at Bawal Industrial area, Gurgaon

STRENGTH:

Total solution provider for Forging, Casting & Machining Components under single
umbrella.
Precision part maker.
Global Supplier.
Critical products with high reliability.
Single Source Supplier to Major OEMs.
Direct On Line (DOL) Supplier to all Customers.
Capable of handling large volume products.
Prototype Design & Development Facility.
Short lead time for New Product Development (2 to 4 Weeks) .
Trained and highly motivated workforce .
Focus on Customer Delight Besides Customer Satisfaction .
3.3 Organization structure and organization chart

23

3.4 Product and service profile of the Organization

24

Machined Components

LOOP

STAY ROD

PLATED ITEMS

STUB AXLE
SHEET METAL ITEMS

BUSHES

Machined / Assembled Components

BAR PIN
CRAN SHAFTS
ASSEMBLY ITEMS

25

26

CHAPTER IV: DATA ANALYSIS AND

INTERPRETATION

Balance Sheet of Bajaj Motors:

27

28

29

4.1 Data analysis

The Balance Sheet and the Statement of Income are essential, but they are only the starting
point for successful financial management. Apply Ratio Analysis to Financial Statements to
analyze the success, failure, and progress of your business.
Ratio Analysis enables the business owner/manager to spot trends in a business and to
compare its performance and condition with the average performance of similar businesses in
the same industry. To do this compare your ratios with the average of businesses similar to
yours and compare your own ratios for several successive years, watching especially for any
unfavorable trends that may be starting. Ratio analysis may provide the all-important early
warning indications that allow you to solve your business problems before your business is
destroyed by them.

30

PURPOSE OF RATIOS

Investors

To help them determine whether they should buy shares in the business,
hold on to the shares they already own or sell the shares they already own.
They also want to assess the ability of the business to pay dividends.

Lenders

To determine whether their loans and interest will be paid when due

Managers

Might need segmental and total information to see how they fit into the
overall picture

Employees

Information about the stability and profitability of their employers to

assess the ability of the business to provide remuneration, retirement
benefits and employment opportunities

Businesses supplying goods and materials to other businesses will read

Suppliers and other
their accounts to see that they don't have problems: after all, any supplier
trade creditors
wants to know if his customers are going to pay their bills!

Customers

The continuance of a business, especially when they have a long term

involvement with, or are dependent on, the business

Governments and
their agencies

The allocation of resources and, therefore, the activities of business. To

regulate the activities of business, determine taxation policies and as the
basis for national income and similar statistics

Financial analysts

They need to know, for example, the accounting concepts employed for
inventories, depreciation, bad debts and so on

Researchers

Researchers' demands cover a very wide range of lines of enquiry ranging

from detailed statistical analysis of the income statement and balance sheet
data extending over many years to the qualitative analysis of the wording
of the statements

31

LIQUIDITY RATIO:
Liquidity ratio measures the ability of the firm to meet its current obligations. Lack of
liquidity or excess liquidity, both conditions are harmful for the health of company. If the
company is having excess liquidity then in that case some funds remain idle, on the other
hand if the company is suffering from lack of liquidity then in that case it might be possible
that it will not be able to meet its obligations at time.
Liquidity is the ability of the firm to meet its current obligations as they fall due.
To find out the liquidity position of the company we generally use Current ratio or Quick
ratio, these are the most common ratios that indicate the extent of liquidity or lack of it.
There are some other ratios these are as follows :

CURRENT RATIO

CASH RATIO

QUICK RATIO

32

CURRENT RATIO
This ratio explain the relationship between current assets and current liabilities of a business.
This ratio is used to assess the firms ability to meet its short term liabilities on time.
According to accounting principles, current ratio of 2:1 is supposed to be an ideal ratio. The
formula for calculating this ratio is:
CURRENT RATIO=CURRENT ASSETS\CURRENT LIABILITIES.
As a conventional rule, a current ratio of 2:1 or more is considered satisfactory. However is
should be blindly followed because the current ratio is a test of quantity, not quality.
FOR Bajaj Motors:
Particulars
Current Ratio

2010
1.63:1

2011
1.77:1

2012
1.20:1

Analysis:As the current ratio of Bajaj Motors is fluctuating each year and the ratios are less than ideal
ratio. Current ratios are less than ideal ratio because of increase in current liabilities is much
faster than current assets of the company.
CASH RATIO:
Cash ratio is the most liquid asset, it is very important for all firms. Cash ratio shows that
how much cash is available with the firms to meet its current obligations. Trade investments
or marketable securities are equivalent to cash, therefore it may also be included in the
computations of cash ratio.
CASHRATIO=CASH+MARKETABLE SECURIRIES\CURRENT LIAB.
This ratio shows the amount of cash, which is available to meet the current liabilities. But
only on the basis of this, we cant say about the firms liquidity position i.e. whether the
company will be able to meet the current liabilities in future or not, because there are many
companies which have small amount of cash in their hand and still they are prospering , just
because they good borrowing power and knowledge of effective utilization.
For Bajaj Motors:
Particulars
Cash Ratio

2010
0.31:1

2011
0.47:1

2012
0.18:1

Analysis:This ratio of the company is fluctuating which is not a good indicator for the creditors of the
company. It is because of not availability of good cash balance and increase in current
liabilities. But as the company has good borrowing power therefore company has to increase
the cash balance.

33

QUICK RATIO:
This ratio explain the relation between liquid asset and current liabilities. Liquid asset means
those assets which will yield cash very shortly. All current assets except stock and prepaid
expenses are included in liquid assets. Inventory normally require some time for realizing
into cash. So inventory consider being less liquid. An ideal quick ratio is said to be 1:1.
Quick ratio is calculated by dividing liquid assets by current liabilities:
QUICK RATIO=LIQUID ASSETS\CURRENT LIABILITEIS
For Bajaj Motors:
Particulars
Quick Ratio

2010
0.81:1

2011
0.92:1

2012
0.59:1

Analysis:As the ratio of the company is again fluctuating and in 2012,it is about to reach to ideal the
ratio in year 2010 and 2011. It means quick ratio of the company is good which shows the
company sound position. It is because of companys good cash balance available and the
other reason for decreased quick ratio is increase in current liabilities of the company.

LEVERAGE OR CAPITAL STRUCTURE RATIOS:

These ratios are calculated to assess the ability of the firm to meet its long-term liabilities as
and when they become due.
DEBT-EQUITY RATIO:
This ratio express the relationship between long-term debts and share holder funds. It
indicates the proportion of funds which are acquired by long-term borrowings in comparison
to share holders funds. This ratio is calculated to assess the ability of the firm to meet its
long term liabilities. Generally, the debt-equity ratio of 2:1 is considered safe. If the debtequity ratio is more than that, it shows a rather risky financial position from long term point
of view, as it indicates that more and more funds invested in the business are provided by
long-term lenders.
DEBT-EQUITY RATIO=DEBT\EQUITY
For Bajaj Motors:
Particulars
Debt-Equity
Ratio

2010
0.31:1

2011
1.91:1

Analysis:34

2012
0.32:1

In 2011 debt equity ratio was nearer to the ideal ratio & in 2010 and 2012 debt equity ratio is
lower than ideal ratio is. 2:1. It is not very good for long term lenders because they are not
much secure in this case.
PROPRIETARY RATIO
PROPRIETARY RATIO=SHARE HOLDERS FUNDS\TOTAL ASSETS
Shareholders' funds = share capital equity + equity share warrants +reserves &surplus-Misc.
exp. Not w/off
Total asset =fixed assets+investment+(current assets- current liabilities)
For Bajaj Motors:
Particulars
Proprietary Ratio

2010
1.05:1

2011
0.14:1

2012
0.84:1

Analysis:This ratio of the company shows that mostly total asset of the company is funded by
shareholder's funds. It has also been judged from the debt-equity ratio. As the debt-equity
ratio of the company was also low in year 2010 and 2012. It shows that most of its activities
are funded by internal funds.

PROFITABILITY RATIO:
The main object of every business concern is to earn profits. A business must be able to earn
to adequate profits in relation to the risk and capital invested in it. The efficiency and success
of a business can be measured with the help of profitability ratios.
NET PROFIT RATIO:
This ratio explain the relationship between net profit and sales. This indicates the companys
efficiency in manufacturing, administrating, and selling the product. This ratio is the overall
measures of the ability to turn each rupee sales into net profit.
NET PROFIT RATIO= PAT\ NET SALES
For Bajaj Motors:
Particulars
Net Profit Ratio

2010
3.5%

2011
2.9%

2012
4.1%

Analysis:This ratio of the company is very less and it is because of more charges of interest and tax
payments. It means that profitability position of the company is not good.
35

EARNING PER SHARE:

This ratio measures the profit available to the equity share holders on a per share basis. All
profits left after payment of tax and preference dividend are available to equity share
holders. This ratio is calculated by dividing the net profits available to equity shareholders
by the number of equity shares issued.
EARNING PER SHARE=NET PROFIT-DIVIDEND ON PERFERNCE SHARES\NO
OF EQUITY SHARE

For Bajaj Motors:

Particulars
EPS(Rs.)

2010
16.27

2011
16.49

2012
28.78

Analysis:Earnings per share of the company has been increasing up to three years and its increase is
the result of increasing profit available for distribution. Earnings per share of the company
has been good and it has increased the capacity of the company in declaring the dividend on
equity shares.
4.2 Summary of Findings
Current ratio of the company does not meet the best satisfactory benchmark 2:1.
Cash ratio also shows a fluctuating trend every year which is not good for the
company.
Quick ratio of the company is touching the satisfactory benchmark almost every year
i.e. 1:1.
Liquidity position of the company is good.
Debt Equity ratio is also showing a slightly risky financial position of the company in
the previous years.
Profitability position of the company is not very good as it should be.
Earnings per share of the company is good for the last three years which is a good
indicator of sound financial position.

4.3 Question-Choices Graph-Interpretation

36

1) The information given in the advertisement in newspaper and internet

was:
No: of Response.
Elaborate
61
Sufficient 346
inadequate 11
Irrelevant
0
418

As only 15% has ranked it elaborate and 82% has ranked it sufficient so
we still have
to improve our advertisement part so that all the candidate would get the
information
exactly what we want.
2) Official assistance and behaviour of the employees in the company?
No. of Responses:
Very Good 160
Good
235
Average
22
Poor
1
418

37

The
the
a bit of improvement as amplified in the
employees response.

official
assistance at
company needs

3) Quality and standard of food supplied at parties and in canteen of the

company?
No: of Response
Very Good 234
Good
162
Average
22
Poor
0
418

The quality and standard for the food supplied was fairly good which can
be seen from the response as 56% candidate has ranked it very good and
only 39% have ranked it good but overall question pattern was fairly good.

38

4) The system (computers) provided by the company are

No. of Response
Very Good 206
Good
195
Average
16
Poor
1
418

The system (computer) provided by the company to the employees was

truly appreciated by the employees which can be seen for the ranking of
the candidates as 49% for very good, 47% for good, 16% for average and
only 1 candidate from 418 has ranked it poor.

5) Corporate Movie
No: of Response
Very Good 179
Good
210
39

Average
Poor

28
1
418

The Corporate movie was a new initiative which has been like by the
candidates as only 29%
have given average and poor rating put together.
6) Assistance of the employee during the Interview:
No: of Response
Very Good 39
Good
19
Average
0
Poor
0
58

40

To assistance and cooperation of the employees during the Interview was

very convinced by the candidate as they have ranked 67% for very good,
33% for good so the overall cooperation was very good.
7) How is the coordination between top level management and bottom
level of management?
No: of Response
Very Good 41
Good
16
Average
1
Poor
0
58

41

The candidates were well coordinated so they have ranked the

coordination between the top level and bottom level as 70% very good.
Only a minority of the group that is 2% not satisfied with the same.

8) In your opinion how would you rate the overall financial process at Bajaj
Motors Ltd.?
No: of Response
Very Good 31
Good
26
Average
1
Poor
0
58

42

The employees were not so much satisfied by the overall financial process
so the
ranking is in the middle situation as they have ranked 53% for the very
good and 45% for
the good so we do have to improve the financial process for the
development.

9)System of giving the salary and bonus to the employees?

No: of Response
1) Very Good 51
2) Good
36
3) Average
6
4) Poor
0
93

The system of salary and bonus is good as they have ranked 55% for the
same, but still it needs improvement to encourage the employees.
10) Quality and standard of question papers in your discipline?
No: of Response
1) Very Good 38
2) Good
43
3) Average
12
4) Poor
0
93

43

As the number of candidate faced a bit difficulties in solving the paper so

only 41% has ranked it very good, 46% ranked it as good and even 13%
ranked it as average.

44

CHAPTER V : CONCLUSIONS AND

SUGGESTIONS

5.1 Summary of Learning Experience

Power point presentation in front of the employees and management.
Formulation of different Financial policies and Manuals and Training
Materials.
Concerning with clients. Had successfully attended all Training
program conducted by the company
Giving good services to the candidates
Scheduled interviews to the candidate
Actively participated in different programs conducted by my
organization
Had good follow up with the clients
Reporting my daily details to the Senior Finance manager.
45

 Call the candidate at particular time and explain the candidate how
they can benefit from our consultancy.
It was a great experience to work as a Financial Management Trainee at
Bajaj Motors. It was a complete learning experience because through that
I came in contact with highly
professional managers & employees
My internship at Bajaj Motors provided me a clear view of what
organizations are
all about, how they form their strategies, how they achieve their goals and
specifically how Finance Department contributes towards the achievement
of goals of
the company.
As a BBA student I have learnt that, without practical knowledge the
course is
incomplete. From this innovations industry training program one can
obtain industry
experience. For me, on job training provides the exposure of present
corporate world
scenario. One get aware of strategies that are involved in the smooth
functioning of the
industry. If I have practical knowledge, then we will get some extra value
when we
complete our BBA course. So, practical knowledge is very important as
well as
theoretical knowledge.
From this job I got to learn a lot:
I came to know how to interact with people.
My communication skills got strengthen.
I learned how management theory is different from practice.
I gained knowledge about the varies MNCs
I developed the leadership skills.
Developed the presentation skills

5.2 Conclusions and Recommendations:

The over all process of recruitment at Bajaj Motors is Excellent. The step by step
information given to the candidates for filling up the application form, collection of admit
cards through the internet is a very rare process which is hardly done by any other
organization. The best thing which I liked in the organization is that the employees are
very mixing in nature and they really like to help each other in their work without any
hesitation. Even though the employees have their work they used to work in a team. The
assistance and cooperation in this organization can never be seen ever in any of the other
organizations.
The candidates over here are not treated as the interview candidates rather they are
treated as an employee over here. They are given all types of privileges what an
46

employee is given inside the organization.

The process adopted by Bajaj Motors is the best process through which financial position of
the company can easily be ascertained. True financial position can judged and is available for
all its interested parties.

47

CHAPTER VI: DISCUSSION ON

TRAINING

6.1 Students work profile (Role and Responsibilities)

I Joined Bajaj Motors corporation ltd. as a Financial Management Trainee.
The main
responsibility of the FM Trainee is to develop, implement and manage the
FM policies
and procedures in the company. It is a great opportunity to gain work
experience in a

48

young and dynamic company working in a fast growing industry. The

trainee will be able
to work independently on projects, which offers a great opportunity for
learning and self-development.
Roles and Responsibility
Performing the analysis of balance sheet of last three years..
Analyzing the financial statements of the company .
Reviewing and analysing funding documents .
Interpreting accounting and financial management policy and
procedures.
Verifying accounts documentation.
Examining accounts and specific appropriation.
Joining Formalities
Call and confirming the dates of bills receivables and debtors
Arrangements for the systems from Admin
Collection of required documents and bills from the employees
6.2 Key learnings:
Experienced the behaviour in office administration
Analyzed different consumer and clients perspectives
The way of talking to clients
Faced problems in automation and pressures from superiors
Behaviour with other workers and with colleagues
The Selling Process as a fresher to the market
Preparation of daily report on the expenses incurred
Experienced leadership quality in an organization
Talking to the anxious and angry customers.
As an industry integrated programmer handling of both studies and job.
Issue Identification and Assessment of the clients.
Growth and Change of mine and my company.
Getting clients to pay attention to what I am saying
How to work with team as a team member

49

Bibliography
Annual Reports

Annual Report of year 2010-2011 and 2011-2012 of Bajaj Motors Ltd.

Records of the company.

Websites
www.bajajmotors.com
www.ask.com

Search Engine
www.google.com (For Literature Review)
50

Appendices
SAMPLE QUESTIONNAIRE
S. No.:
Respondent Name:
Designation:
Company Name:
Location:
1. Which domain your company belongs to?
Engineering
Manufacturing
Telecom
Retail
51

 Automotive
Publishing
2. What is the Total Employee Strength of the Organization Worldwide?
Less than 1,000
1,000-5,000
5,000-10,000
10,000-50,000
50,000 & Above
3. How many employees work at this location/office?
Less than 1,000
1,000-5,000
5,000-10,000
10,000-50,000
50,000 & Above
4. What is the turnover of the company?
Less than 20crore
20crore-40crore
41crore-80crore
80crore-and above
5. Does your company has implemented ERP in the organization?
Yes
No
6. How many employees use computers?
<50%
50%-70%
70%-80%
80%-90%
100%

52

53