Detailed Comparison of Automobile Sector including Pak Suzuki Motors & Honda Atlas for investment perspective in Pakistan

2. Financial
Management
Investment
Comparison
Automobile Sector

3. Group Members
Jaweriya Khan – MBA Eng 2015-028
Rafay Bin Samad Khan – MBA Eng 2015-002
Amber Ghouri – MBA Eng 2015-004
Munseb Ali Arshad – MBA Eng 2015-014
Nimra Latif– MBA Eng 2015-016
Mian Aoun Tariq– MBA Eng 2015-029
Amna Akram– MBA Eng 2015-030

4. Content Layout
Introduction
Automobile Sector
Atlas Honda
&
Pak Suzuki Motor
Company Limited
Key Performance
Indicators
Liquidity
and
Debt Ratios
Activity and
Profitability Ratios
Market Ratios &
Market Analysis
PESTEL Analysis SWOT Analysis
Horizontal
and
Vertical Analysis
Conclusion
Jaweriya
Khan
Rafay Bin
Samad
Khan
Amber Ghouri
Munseb Ali
Arshad
Nimra
Latif
Mian Aoun
Tariq
Amna Akram

7. Why Automobile Sector?
The auto market is one of the largest segments in world trade.
The annual size of automotive export trade in the world has grown to a massive level of
over US$ 600 billion,which accounts for about 10 per cent of the world export.
The existing population of automotive vehicles in Pakistan is 3.9 million.
Only three international brands have passenger car assembling operations in
Pakistan that includes: Toyota, Honda, Suzuki
Auto Sector remains the second largest payer of indirect taxes after the Petroleum Sector
The requirement of information exchange in the region is much more pronounced now than
ever before for keeping the auto industry afloat and competitive

8. Brief History of Honda Atlas
In 1992, joint venture Agreement was signed between Honda
Atlas Pakistan Ltd and Honda Motor Japan co.Ltd.
Company started Civil works and Installation of
Plant ,Equipment and First Car rolled out in 1994.
Honda City was launched in 1997.
ISO 9002 certification was achieved in 1999.
New model of Honda City was launched in 2003 as well as rolling
out of 50,000 car in the same year.
With capacity enhancements,3G Honda City was launch in 2009.
Recently in 2013,Launch of new Honda Civic model, Honda Accord
,Honda City aspire 1.5 and Hybrid Model Honda CRZ .
20th Anniversary celebration was held on 10th December 2013

9. Company Profile
A dynamic, profitable and growth oriented company
through market leadership, maximizing export and
excellence in quality and service
Location: country's largest in house
manufacturing capability at its Karachi and Sheikhup
ura Plants
Authorized Capital: 1.5 Billion (rupees)
Annual Production Capacity: 750,000

10. Brief History of Pak Suzuki Motor
In 1982, joint venture Agreement was signed between Suzuki
Motor Corporation-Japan and Pakistan Automobile to setup Pak
Suzuki Co.Ltd.Locally assembled 33-80(FX) car was launched.
Company started commercial operations in 1984.
Operation of first phase was of new plant at Bin Qasim started
with engine and Transmission assembly in 1990.
Mehran was launched,CNG version of Mehran,BOLAN and RAVI
were introduced in 2001.
With rapid technological changing environment year after
year, Suzuki Wagon introduced, Suzuki Motorcycle GD 110S
launched,Suzuki Outboard Motors introduced in 2014.

11. The company continues to be in the
forefront of automobile industry of
Pakistan.
Over a period of time,the Company has
developed an effective and comprehensive
network of sales, service and spare parts
dealers cater to the needs of customers
render effective after sale service Country
wide.
Company Profile

12. Key Performance Indicators
KPIs stands for “Key Performance Indicators” and
are a mechanism by which
individuals, departments and companies track
their performance
Currently,more then 160 vendors are working
Vendor is evaluated according to following
factors:Quality,Cost,Delivery ,Reliability
Ensuring annual target accomplishment
Vendor development /Up gradation
Measure in key areas and processes that affect
our customers, employees, ourshareholders or
other stakeholders Source
Report to the management for improving the
performance i.e,Key Result indicators to the Sales
manager
Reporting is done via Software CRM & DMIS

13. KPI’s Implementation Process

14. Rafay Bin Samad Khan – MBA Eng 2015-002
Ratios Suzuki Honda
Liquidity Ratios:
Current Ratio / Working Capital Ratio 2.53 times or 253% 0.9 times or 90%
Quick Ratio / Acid Test 0.883 times or 88.3% 0.5 or 50%
Debt Ratios:
Debt Ratio or Total Liabilities to Total Assets Ratio 0.322 times or 32.2% 0.806 times or 80.6%
Total liabilities to Total Equity Ratio 0.474 times or 47.4% 4.15 times
Total Equity to Total Assets Ratio 0.6784 times or 67.8% 0.194 times or 19.4%
Total Interest Earned Ratio / Interest Coverage Ratio / Debt 99.2 times 56.08 times

15.  Liquidity ratios reflects the firm’s ability to satisfy and
fulfill its short term debts and liabilities or due payments
when needed in short duration i.e. within one year.
Current Ratio/ Working Capital Ratio:
Current ratio or working capital ratio is the measure of
how much a firm has total current assets as compared
to its current liabilities to fulfill current liabilities in short duration.
The current or working capital ratio of Suzuki is 2.53
which means that it has 2.53 times more current assets
as compared to its current liabilities.
Liquidity Ratios

16. Liquidity Ratios
 While Honda has current ratio of 0.9 which means that it has 0.9 times or 90% current
assets as compared to its current liabilities.
Recommended current ratio is 2:1
Quick Ratio/Acid Test:
Quick ratio is almost same as current ratios but it excludes inventories in liquid assets
which is the least liquid asset and cannot be converted in to cash on immediate basis.
Quick ratio of Suzuki is 0.883 which means that it has total liquid assets: 88.3% as
compared to its current liabilities.
While Honda has Quick ratio of 0.5 i.e.50% liquid assets as compared to its current
liabilities, i.e. 50% capability and resources to fulfill its current liabilities on immediate basis
in fast cash.
Recommended current ratio is 1:1

17. Conclusion:
 Suzuki has much ability &resources to pay its short term
obligations with much ease and giving payments in time.
Suzuki can easily maintain & continue its day to day
operations and pay necessary liabilities and bills with
less financial risk as compared to the Honda
 While on the other hand, since cash and marketable
securities do not give high rate of return,
so Honda might not want to over-invest in liquidity.
 Hence it is more risk taker.
Liquidity Ratios

18. Liquidity Ratios
Conclusion:
Suzuki has more liquid assets to pay its current liabilities as compared to Honda company
thus it has more resources to arrange funds or cash to fulfill its demands or liabilities on
immediate basis as compared to Honda company with ease and less risk refer to its quick
ratio values.
On other hand liquidity ratios also depends on other factors so it might be possible that
due to Honda larger size and more contacts and access to line of banks and short term loan
or investing companies or with cooperation and coordination with other Honda sections
worldwide it is capable to fulfill its short term demands or current liabilities.
Honda company business model is “built to order” i.e. It manufacture cars on order placed
at sufficient time before delivery i.e. 4-6 months normally, therefore it might keep less
inventory.

19. Debt Ratios
Debt Ratio or Total Liabilities to Total Assets:
 Debt ratio or total liabilities to total assets ratio gives us measure of firm’s ability
to fulfill liabilities as compared to its assets and how much ability a firm has to
avoid bankruptcy.
 Debt ratio or total liabilities to total assets ratio of Suzuki is 0.322 or
32.2%, While Honda has debt ratio of 0.806 or 80.6% such as more liabilities to
assets then that of Suzuki.
Total Liabilities to Total Equity:
Total liabilities to total equity ratio gives us information and measure of firms total
liabilities as compared to firms owners and shareholders invested wealth in their
company.
Total liabilities to total equity ratio of Suzuki is 0.474 times or 44.7% while that of
Honda is 4.15 times such as very much higher liabilities to equity than that of
Suzuki.

20. Debt Ratios
Total Equity to Total Assets:
Total equity to total assets ratio gives us information and measure of firms owners
and shareholders invested wealth as compared to company’s total assets.
Total equity to total assets ratio of Suzuki is 67.84% and is higher as compared to
Honda company which has same type ratio of 19.4%.
Total Interest Earned Ratio / Interest Coverage Ratio / Debt Service:
Debt service ratio gives us information and measure of firms operating profit as
compared to the interest company pays, i.e. ability of company to make contractual
interest payments and interest obligations.
Debt service ratio of Suzuki is 99.2 times while that of Honda is 56.08 times, such
as more of Suzuki Motors Company.

21. Debt Ratios
Conclusion:
Suzuki has less debt ratio as compared to Honda which means that in terms of
debt ratios Suzuki has more abilities and resources to pay its debts and seems to
be in better financial position as compared to Honda company.
Suzuki has less debts as compared to its assets so it can be said that it has less
financial leverage as compared to Honda.
Suzuki has less degree of indebtedness and more ability to service debts, and
takes less risk or can be said to take conservative approach as compared to
Honda which seems to have less finances to meet its contractual debt payments.
Honda Company is more risk taker having more aggressive approach being
more confident and relying on its contacts with investors in time of needs rather
than relying on its assets.

22. Ratios Suzuki Honda
Activity Ratios:
Inventory Turnover Ratio
3.3 times 8.9 times
Average Age of Inventory
110 days 41 days
Average Collection Period
9.2 days NIL
Total Asset Turnover
1.9 times 3.2 times
Profitability Ratios:
Gross Profit Margin 7.8 % 7.3 %
Operating Profit Margin 4.9 % 5.5 %
Net Profit Margin 3.6 % 2.7 %
Earning per Share
Rs. 23.4 Rs. 7.5
Return on Assets
6.8 % of total assets 10 % of total assets
Amber Ghouri – MBA Eng
2015-004

23. Activity Ratios
Inventory Turnover:
Honda keeps its inventory levels lower as compared to Suzuki because
the Inventory Turnover Ratio of Honda is almost 3 times that of Suzuki.
Average Age of Inventory:
Likewise the Average Age of Inventory / No. of days stock held
of Suzuki is almost three times that of Honda. So more expenses
of holding this inventory.
Average Collection Period:
A very big edge of Honda over Suzuki is that it has zero
Accounts Receivables that adds a lot to efficiency.

24. Activity Ratios
Total Asset Turnover:
 Generally, the higher this ratio is the more efficiently the company
 is deploying its assets to generate revenue.
 If higher it implies that company is generating more revenue per
rupee of assets.
 It is probably of greatest interest to management.
 So, Honda has twice the value of Suzuki’s which means
Honda is using it assets more efficiently to generate
sales revenue.

25. Profitability Ratios
Gross Profit Margin:
 Gross Profit Margin measures company's manufacturing
and distribution efficiency during the production process.
 It is a measurement of how much from each dollar of a company's
revenue is available to cover overhead, other expenses and profits.
 G.P. Margin of Suzuki is slightly higher than that of Honda.
Operating Profit Margin:
 Operating margin is used to measure company's
pricing strategy and operating efficiency.
 It gives an idea of how much a company makes
(before interest and taxes) on each dollar of sales.

26. Profitability Ratios
Operating Profit Margin:
 Operating margin ratio shows whether the fixed costs
are too high for the production or sales volume.
 O.P. Margin of Honda is more than that of Suzuki because
Honda have lesser operating expenses than Suzuki.
Net Profit Margin:
 Net profit margin measures how much of each dollar earned by
the company is translated into profits.
 Net profit margin is an indicator of how efficient a company is and
how well it controls its costs.
The higher the margin is, the more effective the company is in
converting revenue into actual profit.
 Suzuki ha higher N.P. Profit.

27. Profitability Ratios
Earning Per Share:
 The shares are normally purchased to earn dividend or sell them at a higher price in future.
 EPS figure is very important for actual and potential common stockholders because the payment of
dividend and increase in the value of stock in future largely depends on the earnings of the
company.
 EPS value of Suzuki is considerably higher than that of Honda.
Return on Asset:
 Return on Assets shows how many dollars of earnings result from each dollar of assets the company
controls.
 Return on Assets ratio gives an idea of how efficient management is at using its assets to generate
profit.
 Return on Assets of Honda is more than that of Suzuki.

28. Return on Equity:
 Return on Equity shows how many dollars of earnings result
from each dollar of equity.
It is recommended to compare return on equity
against company's previous values or return of a similar company.
Some industries have high return on equity because they
require less capital invested.
Other industries require large infrastructure build before
generating any revenue. It is not a fair conclusion that the
industries with a higher Return on Equity ratio are better
investment than the lower ones.
Profitability Ratios

29. Profitability Ratios
Return on Equity:
Generally, the industries which are capital-intensive and with a low Return on Equity
have a limited competition.
But, the industries with high Return on Equity and small assets bases have a much
higher competition because it is a lot easier to start a business within those
industries.
 In our case, Honda has very large value of Return on Equity. So, the risk associated
with this company is also very large.
 Suzuki has very small value of ROE in comparison to Honda hence lower risk.

30. Cash Conversion Cycle
Honda:
CCC = AAI + ACP –APP = 41 + 0 – 100 = - 59 days
Suzuki:
CCC = AAI + ACP –APP = 110 + 9.2 – 34 = 85.2 days
 A negative cash cycle is one in which a company doesn’t pay for its inventory until
after it has sold the final product associated with it. It means company is using its
working capital as efficiently as possible and have available cash for other things.
 So Honda after paying for its trade payables still have 59 days to use its cash in
other activities.

31. Market Ratios
Price/Earning Ratio:
Price/Earning Ratio= Market Price per Share of Common Stock/ EPS
• P/E (Honda) = 55/7.5 = 7.3
• P/E (Suzuki) = 371/23.4 = 15.89
The higher P/E ratio Suzuki indicates that market anticipates rapid growth and is
willing to pay a price for the shares beyond what is justified by historical
earnings, whereas Honda is one which is out of favour, or which is at the bottom
of an industry cycle, and in which the market sees little excitement.
Munseb Ali Arshad – MBA Eng 2015-014

32. Market Ratios
Book Value/ Break-up Value:
Book Value of Common stock = Common Stock Equity/No. of share of Common
stock.
• B.V (Honda) = 17
• B.V (Suzuki) = 233.74
The Book Value of Suzuki is higher than Honda, this means that, in the worst-case
scenario of bankruptcy, the Suzuki’s assets will be sold off and the investor will
still make a profit.

33. Market Ratios
Market Value to Book Value Ratio:
Market Book Value = Market price per share of common stock/ Book Value per
share of common stock.
• M/B (Honda) = 55/17 = 3.24
• M/B (Suzuki) = 371/233.71 = 1.59
M/B ratio of Honda is greater indicating that market value of the company is
greater that the valuation of equity in the financial statement. Conversely the M/B
ratio of Suzuki is low, indicating that the potential reproductive capacity of
assets, is assessed by investors as insufficient due to the amount of risk
associated with the type of activity and due the volume of the share capital.

34. Market Analysis
Atlas Honda
26%
Pak Suzuki
36%
Indus Toyota
30%
Others
8%
Revenue(In thousands)
TOTAL AVAILABLE MARKET BY VALUE/SALES :

35. Market Analysis
Atlas Honda
3%
Pak Suzuki
6%
Indus Toyota
73%
Others
18%
Operating Profit (In thousands)
Market Value by operating profit:

36. Market Analysis
Atlas Honda
27%
Pak Suzuki
63%
Indus Toyota
5%
Others
5%
Total Assets (In thousands)
Market Value by Total Assets:

37. Market Analysis
Atlas Honda
11%
Pak Suzuki
33%Indus Toyota
42%
Others
14%
EPS (Rs.)
Market Value by EPS:

38. Market Analysis
Atlas Honda
5%
Pak Suzuki
37%
Indus Toyota
52%
Others
6%
Dividend Paid (In Thousands)
Market Value by Dividend Paid:

39. Market Ratios and Market Analysis
 The Market Ratios indicates that market anticipates rapid growth and is willing
to pay a price for the shares beyond what is justified by historical earnings of
Suzuki, whereas Honda is one which is out of favour, or which is at the bottom
of an industry cycle, and in which the market sees little excitement.
 The Market Analysis of overall automobile industry verifies the Market ratios, as
Suzuki occupies more market share by sales, operating profit, total assets and
therefore offers more EPS and Dividends to its share holders.

41. PESTEL ANALYSIS
POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL

42. PESTEL ANALYSIS OF HONDA
Political
•Government policy
for deduction in
car
•Pre-tax price
•Political crisis
Economic
•Exchange Rate
•Income Rising
•Global cost of
petrol
•Highest car price
•Costly spare parts
Social
•Demographic and
culture aspects
•Customer needs
•Size of Potential
market

43. PESTEL ANALYSIS OF HONDA
Technological
•Satellite
Navigation
System
•Environmental
Friendly( vi-tec
engine
•Advance mobility
•Home
Automation
Environmental
•environment and
advanced
mobility
•eco-friendly
technology
Legal
•Follow Labor Law
•Employee safety
equipment &
situation

44. PESTEL ANALYSIS OF SUZUKI
Political
•Political Crisis
•Market
Environment
•Imposition of
heavy taxes
Economical
•Exchange Rate
•Highest shares
in market
•Low price vehicle
•Global petrol
price
Social
•Mehran,suzuki, B
olan rapidly sales
for several year
• Yellow cabs easily
available for
customer
• Reliable after sales
service
• Well managed and
competitive staff

45. PESTEL ANALYSIS OF SUZUKI
Technological
•Availability of
spare parts
•Lack of
innovation and
technology
•Tough
competition with
competitors like
Toyota, Honda
Environmental
•Most number of
company fitted
CNG cars
•Eco-friendly
technology
Legal
•Follow Labor Law
•Lack of skill labor

46. COMPARISON
From above mentioned PESTLE
analysis of both companies, we
conclude that Suzuki stands out as
compared to Honda.

47. SWOT Analysis
Mian Aoun Tariq– MBA Eng 2015-029

48. SWOT Analysis
• Smooth Drive
• Brand Name
• Market Share
• Engine & Fuel Consumptions
• Interior & Exterior
• Technological Infrastructure
• Quality & Customer Satisfaction
• After Sale Services
• Financial Strength
• Distribution Network
• Employee Turnover
• Spare parts & Maintenance
• Research & Development
• Competitors Knowledge
Automobile Industry Strengths
0
1
2
3
4
5
Smooth Drive
Brand Name
Market Share
Engine & Fuel
Consumption
Interior & Exterior
Technological
Infrastructure
Quality & Customer
Satisfaction
After Sale ServicesFinancial Strength
Distribution Network
Employee Turnover
Spare parts &
Maintenance
Research &
Development
Competitors
Knowledge
Resale value
Atlas Honda Ltd Pak Suzuki Motors

49. SWOT Analysis
• Product Prices
• Safety Features & Policies
• Poor Knowledge of Global Technology
• Poor Metallic Bodies
• Limited Models
• Eco-friendly vehicles
Automobile Industry Weaknesses
0
1
2
3
Product
Prices
Safety
Features &
Policies
Poor
Knowledge of
Global
Technology
Poor Metallic
Bodies
Limited
Models
Eco-friendly
vehicles
Atlas Honda Ltd Pak Suzuki Motors

50. SWOT Analysis
• Increasing Demand
• Favorable Government Policies
• New Technologies
• Increase in Infrastructure
• Niche Market
• Good Profit Ratios
• Expanding Economy
• Eco-friendly Vehicles
Automobile Industry Opportunities
0
1
2
3
4
Increasing
Demand
Favorable
Government
Policies
New
Technologies
Increase in
Infrastructure
Niche Market
Good Profit
Ratios
Expanding
Economy
Eco-friendly
Vehicles
Atlas Honda Ltd Pak Suzuki Motors

51. SWOT Analysis
• Political Factors
• Competitors
• High Taxation
• Fuel Prices
• New Technologies
• Imported Cars
• Depreciation of local currency
• Obstacles
• Product Lifecycle
Automobile Industry Threats
0
1
2
3
Political Factors
Competitors
High Taxation
Fuel Prices
New TechnologiesImported Cars
Depreciation of local
currency
Obstacles
Product Lifecycle
Atlas Honda Ltd Pak Suzuki Motors

52. 59
HONDA SUZUKI
50 11
HONDA SUZUKI
16
23
HONDA SUZUKI
27 21
HONDA SUZUKI
19
SWOT Analysis

53. Common Size Analysis
A company financial statement that displays all items as
percentages of a common base figure.
This type of financial statement allows for easy analysis
between companies or between time periods of a company.
Types:
1. Common Size Income Statement
2. Common Size Balance Sheet
Amna Akram– MBA Eng 2015-030

54. Common –Sized Profit & Loss Account Of Honda For The Year 2014
Mar-12 Mar-13 Mar-14 2012 2013 2014 Remarks
(RS in Thousand) (RS in Thousand) (RS in Thousand) Common Size % Common Size % Common Size %
Sales 16,599,608 30,274,604 39,153,254 100 100 100
Cost of Sales 16,643,607 28,827,522 36,296,009 100.27 95.22 92.70
Gross Profit (43,999) 1,447,082 2,857,245 (0.27) 4.78 7.30 Higher
Distribution and
Marketing Cost
130,550 218,707 340,556 0.79 0.72 0.87
Administrative
Expenses
158,943 201,908 287,026 0.96 0.67 0.73
Other operating
Income
204,456 213,434 270,548 1.23 0.70 0.69
Other Operating
Expenses
217,842 524,117 364,890 1.31 1.73 0.93
Profit/Loss from
Operations
346,878 715,784 2,135,321 2.09 2.36 5.45 Higher
Finance Cost 151,926 190,967 38,075 0.92 0.63 0.10
Profit Before
Taxation
498,804 524,817 2,097,246 3.00 1.73 5.36 Higher
Taxation 33,409 280,530 1,023,576 0.20 0.93 2.61
Profit after
Taxation
532,213 244,287 1,073,670 3.21 0.81 2.74 Higher
PARTICULARS

55. Common –Sized Profit & Loss Account Of Suzuki For The Year 2014
2012 2013 2014 2012 2013 2014 Remarks
(RS in millions) (RS in millions) (RS in millions) Common Size % Common Size % Common Size %
Sales 58,531 51,061 53,665 100.00 100 100
Cost of Sales (56,186) (47,819) (49,481) (95.99) (93.65) (92.20)
Gross Profit 2,345 3,243 4,184 4.01 6.35 7.80 Increasing
Distribution and
Marketing Cost
(359) (560) (746) (0.61) (1.10) (1.39)
Administrative
Expenses
(859) (960) (1,102) (1.47) (1.88) (2.05)
Increasing
Other operating Income (111) (175) (196) (0.19) (0.34) (0.37)
Other Operating
Expenses
494 863 510 0.84 1.69 0.95
Profit/Loss from
Operations
1,510 2,411 2,650 2.58 4.72 4.94
Increasing
Finance Cost (11) (58) (27) (0.02) (0.11) (0.05)
Profit Before
Taxation
1,499 2,353 2,623 2.56 4.61 4.89
Increasing
Taxation (522) (504) (702) (0.89) (0.99) (1.31)
Profit after Taxation 977 1,849 1,922 1.67 3.62 3.58
Increasing
PARTICULARS

56. Common Sized analysis on Balance Sheet Of Honda -2014
Mar-12 Mar-13 Mar-14 2012 2013 2014 Remarks
(RS in Thousand) (RS in Thousand) (RS in Thousand) Common Size % Common Size % Common Size %
Equity and Libilities
Share Capital and Resesrves
Issued and Paid up Capital 1,428,000 1,428,000 1,428,000 15.05 9.43 11.59
Reserves 249,500 76,000 76,000 2.63 0.50 0.62
Accumulated Profit (549,676) (139,326) 887,220 (5.79) (0.92) 7.20 Increasing
Total Equity (300,176) (63,326) 963,220 (3.16) (0.42) 7.82 Increasing
Non-Current Liabilities Increasing
Long term Finance 83,333 - - 0.88 - -
Gratuity 26,393 37,834 44,425 0.28 0.25 0.36 Increasing
Deferred Revenue - 4,800 11,709 - 0.03 0.10
Current Liabilities - Decreasing
Current portion of long term finances 83,334 - - 0.88 - - Withdrawl
Short term borrowings-secured - - - - - -
Accrued Mark up 65,496 91,986 13,790 0.69 0.61 0.11
Trade and other Payables 8,102,678 13,646,869 9,856,245 85.39 90.10 80.02 Decreasing
Total Liabilities+ Equity 9,489,058 15,146,163 12,317,389 100 100 100.00
Non- Current Assets Decreasing
Fixed Assets 3,255,755 3,355,778 2,873,067 34.31 22.16 23.33 Decreasing
Intangible Assets 56,366 139,556 86,431 0.59 0.92 0.70
Capital Work in Progress 355,812 7,857 81,293 3.75 0.05 0.66
Long Term Loans and Advances 33,855 37,189 52,772 0.36 0.25 0.43
Long term deposits 4,042 4,042 4,042 0.04 0.03 0.03
Deferred Taxation 1,154,027 1,042,794 393,238 12.16 6.88 3.19 Decreasing
Current Assets Fluctuating
Stores and Spares 112,139 115,646 116,205 1.18 0.76 0.94 Fluctuating
Stock-in-Trade 2,853,523 4,311,552 3,852,540 30.07 28.47 31.28
Short term Investments - 491,680 - - 3.25 - Fluctuating
Advances prepayments and other
Receiveables
1,581,062 2,105,102 2,503,651 16.66 13.90 20.33
Cash and Bank Balances 82,477 3,534,967 2,354,150 0.87 23.34 19.11
9,489,058 15,146,163 12,317,389 100 100 100
PARTICULARS

57. Common Sized Analysis on Balance Sheet of Suzuki
2012 2013 2014 2012 2013 2014 Remarks
(RS in millions (RS in millions (RS in millions Common Size % Common Size % Common Size %
Equity and Libilities
Share Capital and Resesrves
Issued and Paid up Capital 823 823 823 2.9 3.5 3.9
Reserves 14,994 16,822 18,414 64.9 70.6 70.2
Total Equity 15,817 17,645 19,237 67.8 74.1 74.0 Increasing
Deffered Taxation - - - - - -
Trade and other Payables 2,695 3,696 4,945 17.4 15.5 12.6
Advances 1,144 629 2,159 7.6 2.6 5.4
Accrued Mark up - - 9 0.0 - -
Short term Borrowings-export
financing
- - - - - -
Security deposits 1,571 1,703 1,917 6.8 7.2 7.4
Provision for custom duties and
sales Tax
138 138 86 0.3 0.6 0.6
Total Equity and Liabilities 21,365.0 23,811.0 28,353.0 100.0 100.0 100.0
Non- Current Assets Decreasing
Fixed Assets 4,051 5,075 4,996 17.6 21.3 19.0
Long term Investments 5 2 - - 0.0 0.0
Long term Loans 1 6 10 0.0 0.0 0.0
Long term deposits, prepayments
and receivables
67 37 23 0.1 0.2 0.3
Long term Installment, Sales
Receivables
163 170 162 0.6 0.7 0.8
Deferred Taxation - 148 56 0.2 0.6 -
Current Assets Fluctuating
Stores and Spares 83 66 82 0.3 0.3 0.4 Increasing
Stock-in-Trade 10,562 10,726 14,976 52.8 45.0 49.4 Fluctuating
Current portion of long term
istallment, sales receivables
314 331 388 1.4 1.4 1.5
Advances prepayments and other
Receiveables
4,701 5,285 5,819 20.5 22.2 22.0
Cash and Bank Balances 1,417 1,964 1,841 6.5 8.2 6.6 Fluctuating
Total Assets 21,364.0 23,810.0 28,353.0 100.0 100.0 100.0
PARTICULARS

58. 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.

59. Trend Analysis on Profit & Loss Account Of Honda For The Year 2014
Mar-12 Mar-13 Mar-14 Year 2012 Year 2013 Year 2014 Remarks
(RS in Thousand) (RS in Thousand) (RS in Thousand) Trend % Trend % Trend %
Sales 16,599,608 30,274,604 39,153,254 100.00 182.38 235.87 Icreasing
Cost of Sales 16,643,607 28,827,522 36,296,009 100.00 173.20 218.08 Icreasing
Gross Profit (43,999) 1,447,082 2,857,245 100.00 (3,288.90) (6,493.89) Icreasing
Distribution and
Marketing Cost
130,550 218,707 340,556 100.00 167.53 260.86
Administrative
Expenses
158,943 201,908 287,026 100.00 127.03 180.58 Increasing
Other operating
Income
204,456 213,434 270,548 100.00 104.39 132.33
Other Operating
Expenses
217,842 524,117 364,890 100.00 240.60 167.50
Profit/Loss from
Operations
346,878 715,784 2,135,321 100.00 206.35 615.58 Increasing
Finance Cost 151,926 190,967 38,075 100.00 125.70 25.06 Fluctuating
Profit Before
Taxation
498,804 524,817 2,097,246 100.00 105.22 420.45 Increasing
Taxation 33,409 280,530 1,023,576 100.00 839.68 3,063.77 Fluctuating
Profit after
Taxation
532,213 244,287 1,073,670 100.00 45.90 201.74 Fluctuating
PARTICULARS

60. Trend Analysis on Profit & Loss Account Of Suzuki
MAR’ 2012 MAR’ 2013 MAR’ 2014 2012 2013 2014 Result
(RS in millions (RS in millions (RS in millions Trend % Trend % Trend %
Sales 58,531 51,061 53,665 100.00 87.2 91.7
Cost of Sales (56,186) (47,819) (49,481) 100.00 85.1 88.1
Gross Profit 2,345 3,243 4,184 100.00 138.3 178.4 Increasing
Distribution and
Marketing Cost
(359) (560) (746) 100.00 156.0 207.8
Administrative
Expenses
(859) (960) (1,102) 100.00 111.8 128.3 Icreasing
Other operating Income (111) (175) (196) 100.00 157.7 176.6
Other Operating
Expenses
494 863 510 100.00 174.7 103.2
Profit/Loss from
Operations
1,510 2,411 2,650 100.00 159.7 175.5 Increasing
Finance Cost (11) (58) (27) 100.00 527.3 245.5
Profit Before
Taxation
1,499 2,353 2,623 100.00 157.0 175.0 Increasing
Taxation (522) (504) (702) 100.00 96.6 134.5
Profit after Taxation 977 1,849 1,922 100.00 189.3 196.7 Increasing
PARTICULARS

61. Trend Analysis on Balance Sheet of Honda
MAR’ 2012 MAR’ 2013 MAR’ 2014 2012 2013 2014 Result
(RS in Thousand) (RS in Thousand) (RS in Thousand) Trend % Trend % Trend %
Equity and Libilities
Share Capital and Resesrves Increasing
Issued and Paid up Capital 1,428,000 1,428,000 1,428,000 100.00 100.00 100.00
Reserves 249,500 76,000 76,000 100.00 30.46 30.46
Accumulated Profit (549,676) (139,326) 887,220 100.00 25.35 (161.41) Increasing
Non-Current Liabilities Increasing
Long term Finance 83,333 - - 100.00 0 0
Gratuity 26,393 37,834 44,425 100.00 143.35 168.32
Deferred Revenue - 4,800 11,709 0 0 0
Current Liabilities Fluctuating
Current portion of long term finances 83,334 - - 100.00 0 0
Short term borrowings-secured - - - 0 0 0
Accrued Mark up 65,496 91,986 13,790 100.00 140.45 21.05
Trade and other Payables 8,102,678 13,646,869 9,856,245 100.00 168.42 121.64 Fluctuating
Total Liabilities 9,489,058 15,146,163 12,317,389 100.00 159.62 129.81 Increasing
Non- Current Assets Fluctuating
Fixed Assets 3,255,755 3,355,778 2,873,067 100.00 103.07 88.25 Decreased
Intangible Assets 56,366 139,556 86,431 100.00 247.59 153.34 Fluctuating
Capital Work in Progress 355,812 7,857 81,293 100.00 2.21 22.85
Long Term Loans and Advances 33,855 37,189 52,772 100.00 109.85 155.88
Long term deposits 4,042 4,042 4,042 100.00 100.00 100.00
Deferred Taxation 1,154,027 1,042,794 393,238 100.00 90.36 34.08
Current Assets Fluctuating
Stores and Spares 112,139 115,646 116,205 100.00 103.13 103.63 Increasing
Stock-in-Trade 2,853,523 4,311,552 3,852,540 100.00 151.10 135.01
Short term Investments - 491,680 - 0 0 0 Decreasing
Advances prepayments and other Receiveables 1,581,062 2,105,102 2,503,651 100.00 133.14 158.35
Cash and Bank Balances 82,477 3,534,967 2,354,150 100.00 4,286.00 2,854.31
Total Assets 9,489,058 15,146,163 12,317,389 100.00 159.62 129.81 Increased
PARTICULARS

62. Trend Analysis on Balance Sheet of Suzuki
2012 2013 2014 2012 2013 2014 Remarks
(RS in millions (RS in millions (RS in millions Trend % Trend % Trend %
Equity and Libilities Increasing
Issued and Paid up Capital 823 823 823 100.0 100.0 100.0
Reserves 14,994 16,822 18,414 100.0 112.2 122.8
Total Equity 15,817 17,645 19,237 100.0 111.6 121.6 Increasing
Deffered Taxation - - - -
Trade and other Payables 2,695 3,696 4,945 100.0 137.1 183.5 Increasing
Advances 1,144 629 2,159 100.0 55.0 188.7
Accrued Mark up - - 9 -
Short term Borrowings-export financing - - - -
Security deposits 1,571 1,703 1,917 100.0 108.4 122.0
Provision for custom duties and sales Tax 138 138 86 100.0 100.0 62.3
Total Equity and Liabilities 21,365.0 23,811.0 28,353.0 100.0 111.4 132.7 Increasing
Non- Current Assets - Increasing
Fixed Assets 4,051 5,075 4,996 100.0 125.3 123.3 Increasing
Long term Investments 5 2 - 100.0 40.0 -
Long term Loans 1 6 10 100.0 600.0 1,000.0
Long term deposits, prepayments and receivables 67 37 23 100.0 55.2 34.3
Long term Installment, Sales Receivables 163 170 162 100.0 104.3 99.4
Deferred Taxation - 148 56 -
Current Assets - Increasing
Stores and Spares 83 66 82 100.0 79.5 98.8 Increasing
Stock-in-Trade 10,562 10,726 14,976 100.0 101.6 141.8 Increasing
Current portion of long term istallment, sales receivables 314 331 388 100.0 105.4 123.6
Advances prepayments and other Receiveables 4,701 5,285 5,819 100.0 112.4 123.8
Cash and Bank Balances 1,417 1,964 1,841 100.0 138.6 129.9
Total Assets 21,364.0 23,810.0 28,353.0 100.0 111.4 132.7 Increasing
PARTICULARS

63. Conclusion -Trend Analysis
Components Suzuki Honda Which is better
Net Sales Upward Trend Upward Trend Suzuki
COGS Downward Trend Upward Trend Suzuki
Gross Profit Upward Trend Upward Trend Suzuki
PBDIT Upward Trend Upward Trend Suzuki
PBT Upward Trend Upward Trend Suzuki
Net Profit(PAT) Upward Trend Fluctuating Suzuki
Total Debt Upward Trend Downward Trend Honda
Total Liabilities Upward Trend Upward Trend Suzuki
Fixed Assets Fluctuating Downward Trend Honda
Investment Upward Trend Upward Trend Suzuki
Net Current Asset Upward Trend Fluctuating Honda
Total Asset Upward Trend Fluctuating Suzuki

64. Conclusions
On the basis of following:
• Ratio Analysis
• Horizontal Analysis
• Vertical Analysis
• PESTEL Analysis
• Comparative SWOT Analysis
• Common Size Analysis
• Trend Analysis
It is concluded that we as a group recommend
& conclude to invest in “SUZUKI”.