5. To compute days Receivables: To find the days debtors we need to first find out Debtors Turnover Ratio(DTR) and then find the days receivables by dividing the DTR value with 360
6.
7.
8.
9.
10.
11.
12.
13. The formula is given by: Advances to customers – Debtors
17. The company was suffering in the sales in the previous years due to the recession and due to the high competition from the competitors, but now the company is showing a good progress in the sales due to the new strategies and due to new product launches.
18. Majority of the company’s debt is collected before the period of six months which is really remarkable and it again shows the strength of the company’s debt collection team.
19. The company is maintaining a high level efficiency in collecting the debts compared to the sales figures of the companies.Hence we can conclude that the company has a strong debtor’s management system where in the company has maintained their DRS in a profitable way and so far no debtors default was noticed which shows that the company has a healthy relationship with their debtors. Also the company has a growing turnover which is required to survive in this tuff period of global melt down.<br /> <br /> ********************************************<br />
![FINANCIAL MANAGEMENT ASSIGNMENT<br /> Prof KAMESWARAN<br />BAJAJ AUTO<br />SUBMITTED BY<br />DONY JOSE (1020311),3rd MBA D<br />INTRODUCTION<br />Bajaj Auto is a major Indian automobile manufacturer started by a HYPERLINK quot;
http://en.wikipedia.org/wiki/Rajasthanquot;
quot;
Rajasthanquot;
Rajasthani merchant. It is based in HYPERLINK quot;
http://en.wikipedia.org/wiki/Punequot;
Pune, Maharashtra, with plants in HYPERLINK quot;
http://en.wikipedia.org/wiki/Chakanquot;
Chakan(Pune), Waluj (near Aurangabad) and HYPERLINK quot;
http://en.wikipedia.org/wiki/Pantnagarquot;
Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto makes and exports HYPERLINK quot;
http://en.wikipedia.org/wiki/Motorscootersquot;
quot;
Motorscootersquot;
motorscooters, motorcycles and the auto rickshaw.<br />The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946. <br />Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.<br />The company is headed by HYPERLINK quot;
http://en.wikipedia.org/wiki/Rahul_Bajajquot;
Rahul Bajaj who is worth more than US$1.5 billion. <br />Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year<br />SALIENT FINANCIAL PERFORMANCE INDICATORS <br />Mar '06Mar '07Mar '08Mar '09Mar '10Investment Valuation RatiosFace Value10.0010.0010.0010.0010.00Dividend Per Share40.0040.0020.0022.0040.00Operating Profit Per Share (Rs)126.44131.3975.0175.64173.02Net Operating Profit Per Share (Rs)748.36931.01610.10601.32816.49Free Reserves Per Share (Rs)459.69535.1699.73106.56190.09Bonus in Equity Capital112.84112.8478.9178.9178.91Profitability RatiosOperating Profit Margin(%)16.8914.1112.2912.5721.19Profit Before Interest And Tax Margin(%)13.7011.6510.0310.8819.78Gross Profit Margin(%)14.3712.0910.3211.0820.03Cash Profit Margin(%)14.7312.1810.4810.5516.20Adjusted Cash Margin(%)14.7312.1810.4810.5516.20Net Profit Margin(%)13.8612.668.327.4014.23Adjusted Net Profit Margin(%)13.8612.668.327.4014.23Return On Capital Employed(%)23.3220.9039.7132.8059.01Return On Net Worth(%)23.0922.3647.6138.9258.14Adjusted Return on Net Worth(%)20.4518.0948.9147.7861.53Return on Assets Excluding Revaluations11.05546.96109.73116.56202.40Return on Assets Including Revaluations11.05546.96109.73116.56202.40Return on Long Term Funds(%)23.3220.9739.7135.3659.19Liquidity And Solvency RatiosCurrent Ratio0.790.840.880.840.69Quick Ratio0.690.760.640.730.55Debt Equity Ratio0.310.290.840.840.46Long Term Debt Equity Ratio0.310.290.840.710.45Debt Coverage RatiosInterest Cover4,280.03280.28224.9153.71421.06Total Debt to Owners Fund0.310.290.840.840.46Financial Charges Coverage Ratio4,852.44315.98258.8459.89443.88Financial Charges Coverage Ratio Post Tax3,813.50268.53181.4338.42308.56Management Efficiency RatiosInventory Turnover Ratio34.1436.8829.3328.6428.87Debtors Turnover Ratio--22.6621.9327.4537.41Investments Turnover Ratio34.1436.8829.3328.6428.87Fixed Assets Turnover Ratio2.622.962.952.603.50Total Assets Turnover Ratio1.211.323.022.532.77Asset Turnover Ratio2.622.962.952.603.50Average Raw Material Holding4.895.085.246.397.91Average Finished Goods Held8.128.1410.739.979.13Number of Days In Working Capital-37.82-25.57-9.73-8.31-41.29Profit & Loss Account RatiosMaterial Cost Composition71.9273.9876.5874.7369.30Imported Composition of Raw MaterialsConsumed4.585.562.372.353.59Selling Distribution Cost Composition3.414.453.983.973.23Expenses as Composition of Total Sales12.4618.3623.5330.8227.67Cash Flow Indicator RatiosDividend Payout Ratio Net Profit41.8938.2444.7856.7239.63Dividend Payout Ratio Cash Profit35.6033.1436.3647.3636.69Earning Retention Ratio52.7152.7156.4153.7962.55Cash Earning Retention Ratio60.5760.2864.4360.2065.19AdjustedCash Flow Times1.251.361.401.680.69Mar '06Mar '07Mar '08Mar '09Mar '10Earnings Per Share108.87122.3552.2545.37117.69Book Value471.49546.96109.73129.23202.40<br />ESTIMATION OF VARIOUS COMPUTATIONS<br />1. For the five years express the Receivable/Debtors as a percentage of Sales and compute the day’s receivable, considering that the company operates for 360 days in a year<br />,[object Object]](https://image.slidesharecdn.com/dony-1020311-110311101844-phpapp02/85/dony-1020311-1-320.jpg)
