Here i have collected financial data of the company to understand or to calculate the PBIT ratio of 10 years,DEBT-EQUITY RATIO ANALYSIS, beta value analysis to know the risk in market etc.

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FINANCIAL DATA ANALYSIS OF “BOSCH LIMITED”
SUBMITTED TO: S.P Mohapatra
SUBMITTED BY: Nibedita Singh
Tanay Majumdar
Priyatam Lenka

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CONTENTS
CHAPTER-1
 Introduction of the company
 Objectives
 Methodologies
CHAPTER-2
 Theoretical background of risk, return portfolio and Beta
 Exhibits & interpretation
CHAPTER-3
 Theoretical background of capital structure decision
 Analysis of EBIT for 10 years data (Graph & Interpretation)
 Debt-equity ratio for 10 years
 Calculative EPS value
 Calculative ICR value
 Analysis of capital structure decision
 Exhibits & interpretation
CHAPTER-4
 Introduction to Walter & Gordon model
 DEP vs. EPS analysis
 DEP vs. EPS analysis
 Exhibits & Interpretation
CHAPTER-5
 Introduction to working capital management
 Sales vs. working capital
 Operating cycle analysis
 Exhibits

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CHAPTER – 1
1.1 INTRODUCTION
In India, Bosch is a leading supplier of technology and services
in the areas of Mobility Solutions, Industrial Technology,
Consumer Goods, and Energy and Building Technology.
Additionally, Bosch has in India the largest development centre
outside Germany, for end to end engineering and technology
solutions.
The Bosch Group operates in India through nine companies,
viz, Bosch Limited, Bosch Chassis Systems India Limited,
Bosch Rexroth India Limited, Bosch Engineering and Business
Solutions Private Limited, Bosch Automotive Electronics India
Private Limited, Bosch Electrical Drives India Private Limited,
BSH Home Appliances Private Limited, ETAS Automotive India
Private Ltd. and Robert Bosch Automotive Steering India Pvt.
Ltd. In India, Bosch set-up its manufacturing operation in 1951,
which has grown over the years to include 15 manufacturing
sites, and seven development and application centres. Bosch
Group in India employs over 30,000 associates and generated
consolidated revenue of about ₨.17, 022 crores in 2015 of
which ₨. 12,100 crores from third party. The Group in India
has close to 14,000 research and development associates.
In India, Bosch Limited is the flagship company of the Bosch
Group. It earned revenue of over ₨. 10,415 crores (1.4 billion
euros) in 2015-16.

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1.2 OBJECTIVES
 Understand the risk associated with the stock
of the company.
 Understand the capital structure of the
company.
 To study the dividend pattern of the company
and its impact price of the stock.
 To know the Working capital management of
the company.
1.3 METHODOLOGIES
Data is collected from secondary sources like
moneycontrol.com, BSE and other various company
portal.
Statistical tools used are standard deviation, mean and
regression method.
Some graphical tools like line chart, bar chart is used to
prepare the report in the visual way.
We have taken 10 years data for observation. So, there
are some limitations in it because of no direct
interaction.

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CHAPTER – 2
2.1 THEORETICAL BACKGROUND OF
RISK, RETURN PORTFOLIO AND BETA
WHAT IS RISK?
Risk can be referred as the chances of having an
unexpected or negative outcome. Any action or activity that
leads to loss of any type can be termed as risk. There are
different types of risks that a firm might face and needs to
overcome.
Falling real interest rates, an unprecedented increase in
longevity, inappropriate reserving, and wrong management
decisions were among the driving forces that put the financial
stability of so many (insurance) companies at risk.
There are two types of risk associated such as systematic risk
and unsystematic risk.
SYSTEMATIC RISK:
Systematic risk is also known as “un-diversifiable risk,” or
“market risk,” affects the overall market, not just a particular
stock or industry. This type of risk is both unpredictable and
impossible to completely avoid.
UN-SYSTEMATIC RISK:
Unsystematic risk, also known as "diversifiable risk" or "residual
risk," is the type of uncertainty that comes with the company or
industry you invest in. Unsystematic risk can be reduced
through diversification. For example, news that is specific to a
small number of stocks, such as a sudden strike by the
employees of a company you have shares in, is considered to
be unsystematic risk.

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CONCEPT OF BETA:
 Beta is a measure of the volatility, or systematic risk, of a
security or a portfolio in comparison to the market as a
whole. In other words, beta gives a sense of a stock's market
risk compared to the greater market. Beta is also used to
compare a stock's market risk to that of other stocks.
 Beta is used in the capital asset pricing model (CAPM).
 Beta is calculated using regression analysis. If the value of
“ß” is less than 1, it means that the security will be less
volatile than the market.
 If the value of “ß” is more than 1, it means that the security's
price will be more volatile than the market.
 For example, if a stock's beta is 1.0, so in this case it gives
20% return.
 So, in this way “ß” helps us to understand the concepts of
passive and active risk.
2.2 EXHIBIT
Month Stock Price Return of stock Return of stock in % Sensex
market
returns
market returns in
%
Jan-11 6007.85 18327.8
Feb-11 5989.25 -0.003095949 -0.309594947 17823.4 -0.02752 -2.75189112
Mar-11 6680.15 0.115356681 11.53566807 19445.2 0.090994 9.0993862
Apr-11 6644.05 -0.00540407 -0.540407027 19136 -0.0159 -1.590416565
May-11 7042.35 0.059948375 5.994837486 18503.3 -0.03306 -3.306236008
Jun-11 6886.65 -0.022109097 -2.210909711 18845.9 0.018515 1.85150957
Jul-11 7090.4 0.029586228 2.958622843 18197.2 -0.03442 -3.441974289
Aug-11 7219.95 0.018271184 1.827118357 16676.8 -0.08355 -8.355406326
Sep-11 7053.7 -0.023026475 -2.302647525 16453.8 -0.01337 -1.337131036
Oct-11 6934.6 -0.016884756 -1.688475552 17705 0.076046 7.604644774
Nov-11 6976.4 0.006027745 0.602774493 16123.5 -0.08933 -8.932782303
Dec-11 6778.15 -0.028417235 -2.841723525 15454.9 -0.04146 -4.146380492
Jan-12 7260.4 0.071147732 7.114773205 17193.6 0.112497 11.24968618
Feb-12 7722.15 0.063598424 6.359842433 17752.7 0.03252 3.251975305

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Mar-12 8250.6 0.068433014 6.843301412 17404.2 -0.01963 -1.962971225
Apr-12 8689.65 0.053214312 5.321431169 17318.8 -0.00491 -0.490628699
May-12 8682.95 -0.000771032 -0.07710322 16218.5 -0.06353 -6.353092389
Jun-12 9109.05 0.049073184 4.907318365 17430 0.074695 7.469542554
Jul-12 8949.7 -0.017493592 -1.749359154 17236.2 -0.01112 -1.111877352
Aug-12 8551.9 -0.044448417 -4.444841727 17429.6 0.011219 1.121942333
Sep-12 8804.25 0.029508063 2.950806254 18762.7 0.07649 7.648959584
Oct-12 8860.95 0.006440072 0.644007156 18505.4 -0.01372 -1.371654673
Nov-12 9126.5 0.02996857 2.996856996 19339.9 0.045096 4.509607476
Dec-12 9475.6 0.038251246 3.825124637 19426.7 0.004489 0.448864782
Jan-13 9244 -0.024441724 -2.444172401 19895 0.024104 2.410444177
Feb-13 8771.1 -0.051157508 -5.115750757 18861.5 -0.05194 -5.194476194
Mar-13 9054.35 0.032293555 3.229355497 18835.8 -0.00137 -0.136627232
Apr-13 8910.15 -0.015926047 -1.59260466 19504.2 0.035486 3.548620524
May-13 9113.25 0.022794229 2.279422905 19760.3 0.013132 1.313154411
Jun-13 8947.75 -0.018160371 -1.816037089 19395.8 -0.01845 -1.844557016
Jul-13 9030.7 0.009270487 0.927048699 19345.7 -0.00258 -0.258354768
Aug-13 8217.5 -0.09004839 -9.004839049 18619.7 -0.03753 -3.752668552
Sep-13 8994.25 0.094523882 9.452388196 19379.8 0.04082 4.081962564
Oct-13 8789.2 -0.022797899 -2.279789866 21164.5 0.092093 9.209345622
Nov-13 8662.85 -0.014375597 -1.437559732 20791.9 -0.0176 -1.760446256
Dec-13 10086.95 0.164391626 16.43916263 21170.7 0.018216 1.821620215
Jan-14 8955.75 -0.1121449 -11.21449001 20513.9 -0.03103 -3.102545596
Feb-14 9366.3 0.045842057 4.584205678 21120.1 0.029554 2.955417925
Mar-14 10858.35 0.15929983 15.92998302 22386.3 0.05995 5.994994347
Apr-14 10508.5 -0.032219444 -3.221944402 22417.8 0.001408 0.140845259
May-14 12313 0.171718133 17.17181329 24217.3 0.080273 8.027281892
Jun-14 13543.1 0.099902542 9.990254203 25413.8 0.049404 4.940426983
Jul-14 13391.65 -0.011182816 -1.118281634 25895 0.018934 1.8934216
Aug-14 14822.85 0.106872566 10.68725661 26638.1 0.028698 2.869823753
Sep-14 15018.2 0.013178977 1.317897705 26630.5 -0.00029 -0.028530553
Oct-14 14897.8 -0.008016939 -0.801693945 27865.8 0.046387 4.638739551
Nov-14 18961.75 0.2727886 27.27885997 28694 0.02972 2.971955258
Dec-14 19465.55 0.026569278 2.656927762 27499.4 -0.04163 -4.163136601
Jan-15 23829.25 0.224175531 22.41755306 29183 0.061221 6.122056392
Feb-15 25877.7 0.085963679 8.596367909 29361.5 0.006118 0.611829853
Mar-15 25383.5 -0.019097524 -1.909752412 27957.5 -0.04782 -4.781806107
Apr-15 22506.2 -0.113353162 -11.33531625 27011.3 -0.03384 -3.384352458
May-15 23655.3 0.051057042 5.105704206 27828.4 0.030251 3.02514021
Jun-15 21915.15 -0.073562796 -7.356279565 27780.8 -0.00171 -0.17108397
Jul-15 24642.9 0.124468689 12.44686895 28114.6 0.012013 1.201296002
Aug-15 23258.85 -0.05616425 -5.616425015 26283.1 -0.06514 -6.514311446
Sep-15 19401.55 -0.165842249 -16.58422493 26154.8 -0.00488 -0.487994372
Oct-15 20460.85 0.054598731 5.459873051 26656.8 0.019193 1.919339564

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Nov-15 18679.65 -0.087054057 -8.705405689 26145.7 -0.01918 -1.917557339
Dec-15 18671.85 -0.000417567 -0.041756671 26117.5 -0.00108 -0.107589517
Jan-16 17444.25 -0.065746029 -6.574602945 24870.7 -0.04774 -4.773994794
Feb-16 16779.15 -0.038127177 -3.812717658 23002 -0.07514 -7.513623466
Mar-16 20787.1 0.238864901 23.88649008 25341.9 0.101724 10.17241979
Apr-16 19703.85 -0.052111646 -5.211164617 25606.6 0.010448 1.044753621
May-16 22351.55 0.134374754 13.43747542 26668 0.041448 4.144787559
Jun-16 22638.2 0.012824614 1.282461395 26999.7 0.01244 1.244039664
Jul-16 24988.85 0.103835552 10.38355523 28051.9 0.038969 3.896855227
Aug-16 24201.5 -0.031508053 -3.150805259 28452.2 0.01427 1.427035498
Sep-16 22733.25 -0.060667727 -6.066772721 27866 -0.0206 -2.060334941
Oct-16 21892.55 -0.036981074 -3.698107398 27930.2 0.002306 0.230568048
Nov-16 20517.85 -0.062793051 -6.27930506 26652.8 -0.04574 -4.573542412
Dec-16 20999.4 0.023469808 2.3469808 26626.5 -0.00099 -0.098863872
Jan-17 21274.5 0.013100374 1.31003743 27288.2 0.024852 2.485159499
Average 2.082577284
Risk 8.155223123
BETA ANALYSIS
INTERPRETATION
Here we found “ß” value 0.98, which is nearly 1, so this indicates
that the security's price is more volatile or risk free.
Regression Statistics
Multiple R 0.533692
R Square 0.284827
AdjustedRSquare 0.27461
StandardError 6.945789
Observations 72
ANOVA
df SS MS F
Significance
F
Regression 1 1344.965 1344.965 27.87841 1.38E-06
Residual 70 3377.079 48.24398
Total 71 4722.044
Coefficients
Standard
Error t Stat P-value Lower 95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 1.44409 0.827453 1.745223 0.085334 -0.20621 3.094392 -0.20621 3.094392
X Variable 1 0.981856 0.185958 5.280001 1.38E-06 0.610976 1.352737 0.610976 1.352737

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CHAPTER – 3
3.1 THEORETICAL BACKGROUND OF
CAPITAL STRUCTURE DECISION
WHAT IS CAPITAL STRUCTURE?
The capital structure is how a firm finances its overall
operations and growth by using different sources of
funds.Debt comes in the form of bond issues or long-term
notes payable, while equity is classified as common
stock, preferred stock or retained earnings. Short-term
debt such as working capital requirements is also
considered to be part of the capital structure.

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3.2 Analysis of PBIT/EBIT for 10 years data:
PBDIT 2,258.30 2,518.60 1,643.70 1,718.70 1,832.20 1,303.76 962.36 1,082.23 987.72 983.87
DEPRICIATION 395 548.4 384.2 367 257.8 253.97 303.63 302.46 253.91 246.48
PBIT 1,863.30 1,970.20 1,259.50 1,351.70 1,574.40 1,049.79 658.73 779.77 733.81 737.39
1,863.30
1,970.20
1,259.50
1,351.70
1,574.40
1,049.79
658.73
779.77 733.81 737.39
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
PBIT

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3.3 DEBT-EQUITY RATIO ANALYSIS
DEBT 19.1 55.5 131.6 185 245.4 276.39 284.31 264.36 245.09 204.8
EQUITY 8,288.80 7,347.00 6,294.30 5,573.30 4,728.40 4,098.04 3,385.23 3,095.45 2,563.41 2,041.96
D/E 0.002304 0.007554 0.020908 0.033194 0.05189916 0.067444 0.083985 0.085403 0.095611 0.100296
0.002304314
0.007554104
0.020907805
0.033193978
0.051899163
0.067444437
0.0839854310.085402769
0.095610925
0.100295794
0
0.02
0.04
0.06
0.08
0.1
0.12
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
D/E

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3.4 CALCULATIVE EPS VALUE
Earnings Per
Share
396.8 426.03 281.76 305.2 357.56
396.8
426.03
281.76
305.2
357.56
273.55
188.11
197.93
190.07
170.97
0
50
100
150
200
250
300
350
400
450
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
EPS

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3.5 CALCULATIVE ICR VALUE
PBIT/EBIT 1,863.
30
1,970.
20
1,259.
50
1,351.
70
1,574.
40
1,049.
79
658.73 779.77 733.81 737.39
INTEREST 4.2 14.3 2.9 5.5 0.4 3.93 1.19 8.73 3.75 6.41
ICR=(EBIT/
INT)
443.64
29
137.77
62
434.31
03
245.76
36
3936 267.12
21
553.55
46
89.320
73
195.68
27
115.03
74
443.6428571
137.7762238
434.3103448
245.7636364
3936
267.1221374
553.5546218
89.3207331
195.6826667115.0374415
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
ICR

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INTERPRETATION
From the obtained data & the graphs it is very clear that
the EPS is increasing and the Debt/Equity ratio
decreasing. Which implies that the company is more
dependable on Equity. But if we look at ICR then we find
that in between 2010-2012 there is a huge change. So
the company cannot believe on more debt. So we finally
conclude that the structure which the company is
following is still good.

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4.1 THEORETICAL BACKGROUND
WALTER’S MODEL
 Prof. J E Walter argues that the choice of dividend policies almost
always affects
 The value of the firm. Walter’s model is based on the following
assumptions:
 The firm finances all its investment through retained earnings;
 The firm’s rate of return r, and its cost of capital, k, are constant;
 The firm have 100% dividend payment or retention ratio;
 The firm’s EPS and DPS are constantforeverin determining a given
value
 Of firm.
 The market price of share is the sum total of presentvalue of infinite
stream of
 Constant dividend, DIV/k; and infinite stream of capital gains, [r
(EPS-DPS)/k]/k.
 P={𝐃𝐈𝐕+ 𝐫 / 𝐤(𝐄𝐏𝐒 𝐃𝐏𝐒)}/K
 According to the Walter’s model, the optimum dividend policy
depends on the
 Relationship between r and k. If r>k, the share value will increase
as the firm
 Retains more earnings; the price will be maximum when the firm
retains 100%. If
 r<k, the price will be maximum if the firm distributes 100% dividend.
 The Walter’s model assumes that the firm’s investment
opportunities are financed
 By retained earnings only. In the long-term, r does not remain
constant; it
 Decreases as more and more investment is made. The firm’s cost
of capital also

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 Does not remain constant; it changes directly with firm’s risk.
GORDON’S MODEL
1. The firm is an all-equity firm.
2. No external financing is available for expansion.
3. Constant internal rate of return, r3 and constant cost of capital, k.
4. The firm and its stream of earnings are perpetual.
5. Corporate taxes do not exist.
6. The retention ratio, b, once decided upon, is constant.
7. The firm’s cost of capital is greater than growth rates where growth rate is
Retention ration multiplied by internal rate of return, i.e., g = br.
Gordon’s model is expressed as follows:
Po = {EPS (1- b)}/ (k – g)
Where b is retention ratio; EPS is earnings per share; g is growth rate and it is
Equal to b*r (retention ration multiplied by rate of return).
The Gordon model suffers from the same limitations as the Walter model.

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4.2 DPS VS EPS TREND
DPS
EPS
85
396.8
85
426.03
55
281.76
60
305.2
135
357.56
40
273.55
30
188.11
25
197.93
25
190.07
16
170.97
396.8
426.03
281.76
305.2
357.56
273.55
188.11 197.93 190.07
170.97
85 85
55 60
135
40 30 25 25 16
0
50
100
150
200
250
300
350
400
450
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
EPS vs DPS
Series1 Series2

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4.3 MPS TREND
MPS 20999.4 18233.85 19465.55 10086.95 9475.6 6778.15 6319.05 4625.65 3200.85 5131.75
20999.4
18233.85
19465.55
10086.95
9475.6
6778.15 6319.05
4625.65
3200.85
5131.75
0
5000
10000
15000
20000
25000
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
MPS

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INTERPRETATION
From the obtained numbers & figures we have found that
the company gives dividend to its Shareholders from its
earnings. The market price per share is also showing a
rising trend throughout the years. So it implies the
company is a profitable one. As the company give
dividend from its earning so when there is loss or gain the
shareholders become beneficial according as the
situation.

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5.1 THEORETICAL BACKGROUND
Working Capital:
Working capital is a measure of both a company's efficiencyand its health
financially.
Working capital is calculated as:
Working Capital = Current Assets - Current Liabilities
The working capital ratio (Current Assets/Current Liabilities) indicates
whether a companyhas enoughlimited assets to coverits short term debt.
Anything below1 indicates negative W/C (working capital). While anything
over 2 means that the company is not investing excess assets. Most
believe that a ratio between 1.2 and 2.0 is sufficient. Also known as "net
working capital".
Operating Cycle
Operating cycle is the number of days a company takes in realizing its
inventories in cash. It equals the time taken in selling inventories plus the
time taken in recovering cash from trade receivables.Itis called operating
cycle because this process of producing/purchasing inventories, selling
them, recovering cash from customers, using that cash to
purchase/produce inventories and so on is repeated as long as the
company is in operations. A short operating cycle is good as it tells that
the company's cash is tied up for a shorter period.

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5.2 WORKING CAPITAL
Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
W.C 2,545.00 2,648.80 1,951.80 2,190.90 1,441.60 232.07 319.23 567.96 376.83 278.51
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
W.C

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5.3 SALES VS. WORKING CAPITAL
SALES 10,612.80 12,085.50 8,820.10 8,659.10 8,165.80 6,708.02 4,831.92 4,640.21 4,295.28 3,806.14
WORKING
CAPITAL
2,545.00 2,648.80 1,951.80 2,190.90 1,441.60 232.07 319.23 567.96 376.83 278.51
2,545.00 2,648.80
1,951.80 2,190.90
1,441.60
232.07 319.23 567.96 376.83 278.51
10,612.80
12,085.50
8,820.10 8,659.10
8,165.80
6,708.02
4,831.92 4,640.21 4,295.28
3,806.14
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
Mar '16 Mar '15 Dec '13 Dec '12 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Dec '06
Sales Vs. W.C
Series1 Series2

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5.4 OPERATING CYCLE
Deb. Turnover Period
44%
Inventory Turnover
Period
46%
Creditor Payment
Period
10%
Operating Cycle in 2014
Deb. Turnover Period Inventory Turnover Period Creditor Payment Period
Debtors Turnover Period 43.04245 34.14406 43.45238 40.51054 36.1386139
InventoryTurnover Period 36.10287 46.3198 42.64019 49.2577598
CreditorsPayment Period 11.04307 9.657822 25.17927 8.26362635
Number of Days In Working
Capital
91.65 81.29 99.43 108.33 93.66
Debtors Turnover Period 43.04245 34.14406 43.45238 40.51054 36.1386139
InventoryTurnover Period 36.10287 46.3198 42.64019 49.2577598
CreditorsPayment Period 11.04307 9.657822 25.17927 8.26362635
Number of Days In Working
Capital
91.65 81.29 99.43 108.33 93.66

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INTERPRETATION
From the obtained data & graphs it is very clear that the working
capital is positive and increasing at an increasing rate. The sales
of the company also increases over the years. As the working
capital is positive it implies that the company operating in a
defensive manner. As both the Sales and working capital
increases, we can say that the company is using more capital to
increases its stocks as well as its sales.
The Operating cycle of the company is near about 90 days. So
we can say that the company is operating in really a good
manner.