3 Years Comparative Ratio, Trend Analysis and Common Size Statement of Bajaj Auto and Hero Motocorp

1. Page 1
Overview of Bajaj Auto Ltd
Bajaj Auto Ltd
Type Public company
Traded As BSE : 532977
NSE : BAJAJ-AUTO
Industry Automotive
Founder Jamnalal Bajaj
Headquarter Pune, India
Key People Rahul Bajaj (Chairman)
Rajiv Bajaj (MD)
Products Motor Cycle, Three-Wheelers Vehicles &
Car
Revenue RS. 208 Billion (2013)
Employees 8,036
Parent Bajaj Group
Subsidiaries Bajaj Auto Indonesia
Website www.bajajauto.com

2. Overview of Hero Motocorp Ltd
Page 2
Hero Motocorp Ltd
“Hum Main Hai Hero”
Type Public Company
Traded As BSC : 500182
NSC: HEROMOTOCO
Industry Automotive
Predecessors Hero Honda Motors Ltd
Founded 19th January 1982
Headquarters New Delhi , India
Key People Dr Brijmohan lall Munjal (Chairman)
Pawan Munjal (MD & CEO)
Products Motor Cycle , Scooter
Revenue RS. 241.66 billion (2013)
Employees 5,842
Parent Hero Group
Subsidiaries Erik Buell Racing
Website www.heromotocorp.com

3. Page 3
Definitions
1). Common Size Income Statement
 An income statement in which each amount is expressed as
a percentage of the values of sales.
 This type of financial statement can be used to allow for
easy analysis between companies or between time periods
of a company.
2). Common Size Balance Sheet
 A balance sheet that display both the numeric value of
all entries & the percentage each entry is relative to the
total value of related entries.
 On common size balance sheet, an asset is compared to
total assets, a liability to total liabilities & stockholder
equity to total stockholder equity.
3). 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.
4). Ratio Analysis
 Ratio Analysis is a form of financial statement
analysis that is used to obtain a quick indication of
a firm’s financial performance in several key areas.

4. Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths
Income
Sales Turnover 20,149.51 19,997.25 20,475.74
Excise Duty 0.00 0.00 959.09
Net Sales 20,149.51 19,997.25 19,516.65
Other Income 706.41 795.49 413.66
Stock Adjustments 18.90 -24.00 94.15
Total Income 20,874.82 20,768.74 20,024.46
Expenditure
Raw Materials 14,289.20 14,761.83 14,580.24
Power & Fuel Cost 106.16 121.33 101.85
Employee Cost 726.58 639.48 541.04
Other Manufacturing Expenses 0.00 0.00 73.76
Selling and Admin Expenses 0.00 0.00 364.06
Miscellaneous Expenses 940.73 815.36 263.37
Preoperative ExpCapitalised 0.00 0.00 -49.43
Total Expenses 16,062.67 16,338.00 15,874.89
Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths
Operating Profit 4,105.74 3,635.25 3,735.91
PBDIT 4,812.15 4,430.74 4,149.57
Interest 0.49 0.54 22.24
PBDT 4,811.66 4,430.20 4,127.33
Depreciation 179.61 163.97 145.62
Other Written Off 0.00 0.00 2.14
Profit Before Tax 4,632.05 4,266.23 3,979.57
Extra-ordinary items 0.00 0.00 46.60
PBT (Post Extra-ord Items) 4,632.05 4,266.23 4,026.17
Tax 1,388.73 1,222.66 1,022.12
Reported Net Profit 3,243.32 3,043.57 3,004.05
Total Value Addition 1,773.47 1,576.17 1,294.65
Preference Dividend 0.00 0.00 0.00
Equity Dividend 1,446.84 1,302.15 1,302.15
Corporate Dividend Tax 245.89 221.30 211.24
Page 4
Profit & Loss account of Bajaj Auto
------------------- in Rs. Cr. -------------------

5. COMMON –SIZED PROFIT & LOSS ACCOUNT OF BAJAJ AUTO LTD
FOR THE YEAR ENDED 31ST MARCH 2014
PARTICULARS MAR’ 2014 MAR’ 2013 MAR’ 2012
Page 5
(RS IN
CRORE)
COMMON
SIZE %
(RS IN
CRORE)
COMMON
SIZE %
(RS IN
CRORE)
COMMON
SIZE %
Gross Sales 20,149.51 100 19,997.25 100 20,475.74 104.91
Excise Duty 0.00 0.00 0.00 0.00 (959.09) (4.91)
Net Sales 20,149.51 100 19,997.25 100 19,516.65 100
Materials Cost (14,289.20) (70.91) (14,761.83) (73.82) (14,580.24) (74.71)
(+)/(-) Stock Adj 18.90 0.09 (24) (0.12) 94.15 0.48
Other manufacturing exp 0.00 0.00 0.00 0.00 73.76 0.38
Preoperative
0.00 0.00 0.00 0.00 (49.43) (0.25)
ExpCapitalised
COGS (14,270.30) (70.83) (14,785.83) (73.94) (14,510.42) (74.35)
GP ( Net Sales – COGS) 5,879.21 29.18 5,211.42 26.06 5,006.23 25.65
Employee cost (726.58) (3.61) (639.48) (3.20) (541.04) (2.77)
Power & Fuel Cost (106.16) (0.52) (121.33) (0.61) (101.85) (052)
Selling , Admi& Other exp (940.73) (4.67) (815.36) (4.08) (627.43) (3.21)
(+)Other Income
706.41 3.51 795.49 3.98 413.66 2.12
(Operating)
PBDIT 4,812.15 23.88 4,430.74 22.16 4,149.57 21.26
Depreciation (179.61) (0.89) (163.97) (0.82) (147.76) (0.76)
Operating profit –
4,632.54 22.99 4,266.77 21.34 4,001.81 20.50
OP/PBT
Interest & Finance Charge (0.49) (0.002) (0.54) (0.003) (22.24) (0.11)
PBTEOT 4,632.05 22.99 4,266.23 21.33 3,979.57 20.39
(+)/(-) Extra ordinary item 0.00 0.00 0.00 0.00 46.60 0.24
PBT -Y 4,632.05 22.99 4,266.23 21.33 4,026.17 20.63
(+)/(-) Prior Year Adj 0.00 0.00 0.00 0.00 0.00 0.00
PBT 4,632.05 22.99 4,266.23 21.33 4,026.17 20.63
Tax (1,388.73) (6.89) (1,222.66) (6.11) (1,022.12) (5.24)
Net Profit/PAT 3,243.32 16.09 3,043.57 15.22 3,004.05 15.39

6. Page 6
Profit & Loss account of Hero Motocorp
------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths
Income
Sales Turnover 25,275.47 23,768.11 25,252.98
Excise Duty 0.00 0.00 1,666.18
Net Sales 25,275.47 23,768.11 23,586.80
Other Income 446.38 398.38 347.46
Stock Adjustments -8.36 0.00 94.03
Total Income 25,713.49 24,166.49 24,028.29
Expenditure
Raw Materials 18,320.46 17,470.73 17,485.65
Power & Fuel Cost 137.46 129.18 112.66
Employee Cost 930.04 820.92 735.52
Other Manufacturing Expenses 0.00 0.00 51.62
Selling and Admin Expenses 0.00 0.00 1,257.84
Miscellaneous Expenses 2,339.09 2,025.33 389.52
Preoperative ExpCapitalised 0.00 0.00 0.00
Total Expenses 21,727.05 20,446.16 20,032.81
Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths
Operating Profit 3,540.06 3,321.95 3,648.02
PBDIT 3,986.44 3,720.33 3,995.48
Interest 11.82 11.91 33.43
PBDT 3,974.62 3,708.42 3,962.05
Depreciation 1,107.37 1,141.75 1,097.34
Other Written Off 0.00 0.00 0.00
Profit Before Tax 2,867.25 2,566.67 2,864.71
Extra-ordinary items 0.00 0.00 0.00
PBT (Post Extra-ord Items) 2,867.25 2,566.67 2,864.71
Tax 758.17 411.04 486.58
Reported Net Profit 2,109.08 2,118.18 2,378.13
Total Value Addition 3,406.59 2,975.43 2,547.16
Preference Dividend 0.00 0.00 0.00
Equity Dividend 1,299.13 1,198.13 898.59
Corporate Dividend Tax 220.79 203.62 145.77
Per share data (annualised)
Shares in issue (lakhs) 1,996.88 1,996.88 1,996.88
Earning Per Share (Rs) 105.62 106.07 119.09
Equity Dividend (%) 3,252.70 3,000.00 2,250.00
Book Value (Rs) 280.43 250.70 214.83

7. COMMON –SIZED PROFIT & LOSS ACCOUNT OF HERO MOTOCORP
FOR THE YEAR ENDED 31ST MARCH 2014
PARTICULARS MAR’ 2014 MAR’ 2013 MAR’ 2012
Page 7
(RS IN
CRORE)
COMMON
SIZE %
(RS IN
CRORE)
COMMON
SIZE %
(RS IN
CRORE)
COMMON
SIZE %
Gross Sales 25,275.47 100 23,768.11 100 25,252.98 107.06
Excise Duty 0.00 0.00 0.00 0.00 (1,666.18) (7.06)
Net Sales 25,275.47 100 23,768.11 100 23,586.8 100
Materials Cost (18,320.46) (72.48) (17,470.73) (73.50) (17,485.65) (74.13)
(+)/(-) Stock Adj (8.36) (0.03) 0.00 0.00 94.03 0.40
Other manufacturing exp 0.00 0.00 0.00 0.00 (51.62) (0.22)
Preoperative
0.00 0.00 0.00 0.00 0.00 0.00
ExpCapitalised
COGS (18328.82) (72.51) (17,470.73) (73.50) (17,443.24) (73.95)
GP ( Net Sales – COGS) 6,946.65 27.48 6,297.38 26.50 6,143.56 26.05
Employee cost (930.04) (3.68) (820.92) 3.45 (735.52) (3.12)
Power & Fuel Cost (137.46) (0.54) (128.18) (0.54) (112.66) (0.48)
Selling , Admi& Other exp (2,339.09) (9.25) (2,025.33) (8.52) (1,647.36) (6.98)
(+)Other Income
446.38 1.77 398.38 1.66 347.46 1.47
(Operating)
PBDIT 3986.44 15.77 3,721.33 15.66 3,995.48 16.94
Depreciation 1,107.37 (4.38) (1,141.75) (4.80) (1,097.34) (4.65)
Operating profit –
2,879.07 11.39 2,579.58 10.85 2,898.14 12.29
OP/PBT
Interest & Finance Charge (11.82) (0.05) (11.91) (0.05) (33.43) (0.14)
PBTEOT 2,867.25 11.34 2,567.67 10.80 2,864.71 12.15
(+)/(-) Extra ordinary item 0.00 0.00 0.00 0.00 0.00 0.00
PBT -Y 2,867.25 11.34 2,567.67 10.80 2,864.71 12.15
(+)/(-) Prior Year Adj 0.00 0.00 0.00 0.00 0.00 0.00
PBT 2,867.25 11.34 2,567.67 10.80 2,864.71 12.15
Tax (758.17) (3.00) (411.04) (1.73) (486.58) (2.06)
Net Profit/PAT 2,109.08 8.34 2,156.63 9.07 2,378.13 10.08

8. Common-Sized Analysis of Bajaj Auto Ltd. & Hero Motocorp Ltd.
Page 8
Profit & Loss Account
 Net sales: Growth in Hero Motocorp 6.34% while in Bajaj Auto only
0.76%.
 Material cost as a Percentage of net sales more or less in the same ratio
in both the companies. However it decreased by 2.91% in the case of
Bajaj Auto while 1.02% in the case of Hero Motocorp.
 Expenses other than materials cost are much higher in Bajaj Auto as
against Hero Motocorp. However hero Motorcorp is much more cost
efficient than Bajaj Auto as its expenses are around 22.14% less than
Bajaj Auto.
 Other operating income is 3.51% in 2013-14 & 3.98% in 2012-13 in case
of Bajaj auto while remained more or less stagnant (1.77% &1.66%) in
case of hero motocorp ltd.
 Result: PBDIT down in both the cases but downfall much more in case of
Bajaj auto (23.88% against 22.16%) while just 15.77% against 15.66% in
case of hero motocorp ltd.
 Depreciation cost as a % of net sales more or less in the same ratio in
both the companies. Both have been able to reduce it in 2013-14.
 Interest & finance charges negligible in Baja auto as against 0.05% for
the two years in case of hero motocorp ltd.
 Result: Decline in PBT to 22.99% as against 22.33% last year. PBT at
11.34% in the year 20.13-14 & 10.80 % in the year 2012-13 in case of
hero motocorp ltd.
 Overall, despite the decline in PAT, Bajaj auto’s net profit margin at
16.09% is way ahead of just 8.34% of hero motocorp .Bajaj auto is thus a
far more profitable company than hero motocorp ltd.

9. COMMON – SIZED BALANCE SHEET OF BAJAJ AUTO LTD
AS AT 31ST MARCH 2014
Page 9
PARTICULARS
Mar '14
COMMON
SIZE %
Mar '13
COMMON
SIZE %
Mar '12
COMMON
SIZE %
12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 289.37 2.99 289.37 2.99 289.37 2.99
Equity Share Capital 289.37 2.99 289.37 2.99 289.37 2.99
Share Application Money 0.00 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00 0.00
Reserves 9,318.65 96.40 7,612.58 95.48 5,751.70 93.70
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 0.00
Networth 9,608.02 99.40 7,901.95 99.11 6,041.07 98.41
Secured Loans 0.00 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 57.74 0.60 71.27 0.89 97.48 1.59
Total Debt 57.74 0.60 71.27 0.89 97.48 1.59
Total Liabilities 9,665.76 100 7,973.22 100 6,138.55 100
Application Of Funds
Gross Block 4,077.04 42.18 3,828.85 48.02 3,425.94 55.81
Less: Accum. Depreciation 2,071.00 21.43 2,024.42 25.39 1,914.33 31.19
Net Block 2,006.04 20.75 1,804.43 22.63 1,511.61 24.62
Capital Work in Progress 144.06 1.49 293.55 3.68 343.15 5.59
Investments 8,549.63 88.45 6,430.48 80.65 4,882.81 79.54
Inventories 639.72 6.62 636.28 7.98 678.53 11.05
Sundry Debtors 796.21 8.24 767.58 9.63 423.20 6.89
Cash and Bank Balance 495.48 5.13 558.86 7.00 446.49 7.27
Total Current Assets 1,931.41 19.98 1,962.72 24.62 1,548.22 25.22
Loans and Advances 2,116.46 21.90 1,987.44 24.93 1,744.82 28.42
Fixed Deposits 0.00 0.00 0.00 0.00 1,208.36 19.68
Total CA, Loans &
41.88
49.54
73.33
4,047.87
3,950.16
4,501.40
Advances
Deffered Credit 0.00 0.00 0.00 0.00 0.00 0.00
Current Liabilities 3,108.15 32.16 2,762.93 34.65 2,925.53 47.66
Provisions 1,973.69 20.42 1,742.47 21.85 2,174.89 35.43
Total CL & Provisions 5,081.84 52.58 4,505.40 56.51 5,100.42 83.09
Net Current Assets -1,033.97 -10.70 -555.24 -6.96 -599.02 -9.76
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 0.00
Total Assets 9,665.76 100 7,973.22 100 6,138.55 100

10. COMMON-SIZED BALANCE SHEET OF HERO MOTOCORP
AS AT 31ST MARCH 2014
Page
10
PARTICULARS
Mar’14 Common
Size%
Mar’13 Common
Size%
Mar’12 Common
12 mths 12mths 12mths Size%
Sources of fund
Total share Capital 39.94 0.71 39.94 0.75 39.94 0.75
Equity Share Capital 39.94 0.71 39.94 0.75 39.94 0.75
Share Application Money 0 0 0 0 0 0
Preference Share Capital 0 0 0 0 0 0
Reserves 5599.93 100.0 4966.30 93.55 4249.89 80.41
Revaluation Reserves 0 0 0 0 0 0
Net worth 5599.87 100 5006.24 94.30 4289.83 81.17
Secured loan 0 0 302.16 5.69 994.85 18.82
Unsecured Loan 0 0 0 0 0 0
Total Debt 0 0 302.16 5.69 994.85 18.82
Total liabilities 5599.87 100 5308.40 100 5284.68 100
Application of Fund
Gross Block 3761.52 67.17 4427.29 83.40 6308.26 119.36
Less: Accum Depreciation 1518.27 27.11 1356.31 25.55 2522.75 47.73
Net Block 2243.25 40.05 3070.98 57.85 3785.51 71.63
Capital Work in Progress 854.11 15.25 62.09 1.16 193.95 3.67
Investments 4088.77 73.01 3623.83 68.26 3964.26 75.01
Inventories 669.55 11.95 636.76 11.99 675.57 12.78
Sundry debtors 920.58 16.43 665.0 12.52 272.31 5.15
Cash and Bank Balance 117.50 2.09 181.04 3.41 56.10 1.06
Total current Asset 1707.63 30.49 1482.80 27.93 1003.98 18.99
Loans and advances 1203.54 21.49 1401.95 26.41 926.99 17.54
Fixed Deposit 0 0 0 0 20.72 0.39
Total CA, Loans & Advances 2911.17 51.98 2884.75 54.34 1951.69 36.93
Deferred Credit 0 0 0 0 0 0
Current Liabilities 2903.12 51.84 2893.39 54.50 3520.66 66.62
Provision 159.31 2.84 1439.86 27.12 1090.07 20.62
Total CL &Provision 4497.43 80.31 4333.25 81.63 4610.73 87.24
Net Current Assets -1586.26 -28.32 -1448.50 -27.28 -2659.04 -50.31
Miscellaneous Expense 0 0 0 0 0 0
Total Assets 5599.87 100 5308.40 100 5284.68 100

11. Common-Sized Analysis- Balance Sheet
 Bajaj auto bigger a company than hero motocorp. Its balance sheet is
9665.76 crores as against a meager 5599.87 crores of hero motocorp.
 Hero motocorp’s equity went down to 100% of its total resources as at
2013-14 as against 94.30% last year due to increase in loan funds from
5.69% to 18.89% in 2012-13. Bajaj auto equity’s far higher than hero
motocorp.
 Out of total resources 40.05% of net fixed assets in case of hero
motocorp & 20.75% in case of Bajaj auto are both turning over net sales
of rs100 each.
 Investment at 88.45% in case of Bajaj auto is way ahead of 73.01% of
hero motopcorp. Bajaj auto is sitting on a war chest & will be able to
enchash any business opportunity.
 Inventories of Bajaj auto at the level of just 6.62% as against 11.95% in
case of hero motocorp speak for efficient inventory management of the
former.
 Bajaj auto has net current liabilities as against net current assets in case
of hero motocorp. It is making money out of non-interest bearing
outstanding of its supplier.
 Ultimately Bajaj auto emerges to be a highly solvent & efficiently
Page
11
managed company.

12. TREND ANALYSIS OF PROFIT & LOSS ACCOUNT OF BAJAJ AUTO LTD
FOR THE YEAR ENDED 31ST MARCH 2014
Page
12
PARTICULARS
Year 2012
(RS IN
CRORE)
Year 2013
(RS IN
CRORE)
Year 2014
(RS IN
CRORE)
Year 2012
TREND %
Year 2013
TREND %
Year 2014
TREND %
Gross Sales 20,475.74 19,997.25 20,149.51 100 97.66 98.41
Excise Duty (959.09) 0.00 0.00 100 0.00 0.00
Net Sales 19,516.65 19,997.25 20,149.51 100 102.46 103.24
Materials Cost (14,580.24) (14,761.83) (14,289.20) (100) (101.25) (98.00)
(+)/(-) Stock Adj 94.15 (24) 18.90 100 25.49 20.07
Other
manufacturing
73.76 0.00 0.00 100 0.00 0.00
exp
Preoperative
ExpCapitalised
(49.43) 0.00 0.00 100 0.00 0.00
COGS (14,510.42) (14,785.83) (14,270.30) (100) (101.90) (98.35)
GP ( Net Sales –
5,006.23 5,211.42 5,879.31 100 104.10 117.44
COGS)
Employee cost (541.04) (639.48) (726.58) (100) 118.19 134.29
Power & Fuel Cost (101.85) (121.33) (106.16) (100) 119.13 104.23
Selling , Admi&
(627.43) (815.36) (940.73) (100) 129.95 149.93
Other exp
(+)Other Income
(Operating)
413.66 795.49 706.41 100 192.31 170.77
PBDIT 4,149.57 4,430.74 4,812.15 100 106.78 115.97
Depreciation (147.76) (163.97) (179.61) (100) (110.97) (121.55)
Operating profit –
4,001.81 4,266.77 4,632.54 100 106.62 115.76
OP/PBT
Interest & Finance
Charge
(22.24) (0.54) (0.49) (100) (2.43) (2.20)
PBTEOT 3,979.57 4,266.23 4,632.05 100 107.20 116.40
(+)/(-) Extra
46.60 0.00 0.00 100 0.00 0.00
ordinary item
PBT 4,026.17 4,266.23 4,632.05 100 105.96 115.05
Tax (1,022.12) (1,222.66) (1,388.73) 100 119.62 135.87
Net Profit/PAT 3,004.05 3,043.57 3,243.32 100 101.32 107.67

13. TREND ANALYSIS OF PROFIT & LOSS ACCOUNT OF MOTOCORP LTD
FOR THE YEAR ENDED 31ST MARCH 2014
Page
13
PARTICULARS
Year 2012
(RS IN
CRORE)
Year 2013
(RS IN CRORE)
Year 2014
(RS IN CRORE)
Year
2012
TREND
%
Year
2013
TREND %
Year 2014
TREND %
Gross Sales 25252.98 23768.11 25275.47 100 94.12 100.09
Excise Duty 1666.18 0 0 100 0 0
Net Sales 23586.8 23768.11 25275.47 100 100.77 107.16
Materials Cost (17485.65) (17470.73) (18320.46) (100) 99.91 104.77
(+)/(-) Stock Adj 94.03 0 (8.36) 100 0 8.89
Other
manufacturing
(51.62) 0 0 100 0 0
exp
Preoperative
ExpCapitalised
0 0 0 0 0 0
COGS (17443.24) (17470.73) (18328.82) (100) 100.16 105.08
GP ( Net Sales –
6143.56 6297.38 6946.65 100 102.50 113.07
COGS)
Employee cost (735.52) (820.92) (930.04) (100) 111.61 126.45
Power & Fuel Cost (112.66) (129.18) (137.46) (100) 114.66 122.01
Selling , Admi&
(1647.36) (2025.33) (2339.09) (100) 122.94 141.99
Other exp
(+)Other Income
(Operating)
347.46 398.38 446.38 100 114.65 128.47
PBDIT 3995.48 3721.33 3986.44 100 93.14 99.77
Depreciation (1097.34) (1141.75) (1107.37) (100) 104.05 100.91
Operating profit –
2898.14 2579.58 2879.07 100 89.01 99.34
OP/PBT
Interest & Finance
Charge
(33.43) (11.91) (11.82) (100) 35.63 35.36
PBTEOT 2864.71 2567.67 2867.25 100 89.63 100.09
(+)/(-) Extra
0 0 0 0 0 0
ordinary item
PBT 2864.71 2567.67 2867.25 100 89.63 100.09
Tax (486.58) (411.04) (758.17) (100) 84.48 155.82
Net Profit/PAT 2378.13 2156.63 2109.08 100 90.69 88.69

14. TREND ANALYSIS OF BALANCE SHEET OF BAJAJ AUTO LTD
AS AT 31ST MARCH 2014
Page
14
PARTICULARS
Year 2012
(RS IN
CRORE)
Year 2013
(RS IN
CRORE)
Year 2014
(RS IN
CRORE)
Year 2012
TREND %
Year 2013
TREND %
Year 2014
TREND %
Sources Of Funds
Total Share Capital 289.37 289.37 289.37 100 100 100
Equity Share Capital 289.37 289.37 289.37 100 100 100
Share Application Money 0.00 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00 0.00
Reserves 5751.70 7,612.58 9,318.65 100 132.35 162.02
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 0.00
Net worth 6,041.07 7,901.95 9,608.02 100 130.80 159.05
Secured Loans 0.00 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 97.48 71.27 57.74 100 73.11 59.23
Total Debt 97.48 71.27 57.74 100 73.11 59.23
Total Liabilities 6,138.55 7,973.22 9,665.76 100 129.89 157.46
Application Of Funds
Gross Block 3,425.94 3,828.85 4,077.04 100 111.76 119.01
Less: Accum. Depreciation 1,914.33 2,024.42 2,071.00 100 105.75 108.18
Net Block 1,511.61 1,804.43 2,006.04 100 119.37 132.71
Capital Work in Progress 343.15 293.55 144.06 100 85.55 41.98
Investments 4882.81 6,430.48 8,549.63 100 131.70 175.10
Inventories 678.53 636.28 639.72 100 93.77 94.28
Sundry Debtors 423.20 767.58 796.21 100 181.38 188.14
Cash and Bank Balance 446.49 558.86 495.48 100 125.17 110.97
Total Current Assets 1,548.22 1,962.72 1,931.41 100 126.77 124.75
Loans and Advances 1,744.82 1,987.44 2,116.46 100 113.91 121.30
Fixed Deposits 1,208.36 0.00 0.00 100 0.00 0.00
Total CA, Loans &
4,047.87 100 87.75 89.92
4,501.40 3,950.16
Advances
Deffered Credit 0.00 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,925.53 2,762.93 3,108.15 100 94.44 106.24
Provisions 2,174.89 1,742.47 1,973.69 100 80.12 90.75
Total CL & Provisions 5,100.42 4,505.40 5,081.84 100 88.33 99.64
Net Current Assets -599.02 -555.24 -1,033.97 -100 -92.69 -172.61
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 0.00
Total Assets 6,138.55 7,973.22 9,665.76 100 129.89 157.46

15. TREND ANALYSIS OF BALANCE SHEET OF HERO MOTOCORP LTD
AS AT 31ST MARCH 2014
Page
15
PARTICULARS
Year 2012
(RS IN
CRORE)
Year 2013
(RS IN
CRORE)
Year 2014
(RS IN
CRORE)
Year 2012
TREND %
Year 2013
TREND %
Year 2014
TREND %
Sources Of Funds
Total Share Capital 39.94 39.94 39.94 100 100 100
Equity Share Capital 39.94 39.94 39.94 100 100 100
Share Application Money 0 0 0 0 0 0
Preference Share Capital 0 0 0 0 0 0
Reserves 4249.89 4966.30 5599.93 100 116.86 131.77
Revaluation Reserves 0 0 0 0 0 0
Net worth 4289.83 5006.24 5599.87 100 116.70 131.77
Secured Loans 994.85 302.16 0 100 30.37 0
Unsecured Loans 0 0 0 0 0 0
Total Debt 994.85 302.16 0 100 30.37 0
Total Liabilities 5284.68 5308.40 5599.87 100 100.45 105.96
Application Of Funds
Gross Block 6308.26 4427.29 3761.52 100 70.18 59.63
Less: Accum. Depreciation 2522.75 1356.31 1518.27 100 53.76 60.18
Net Block 3785.51 3070.98 2243.25 100 81.12 59.26
Capital Work in Progress 193.95 62.09 854.11 100 32.01 440.38
Investments 3964.26 3623.83 4088.77 100 82.33 103.14
Inventories 675.57 636.76 669.55 100 94.26 99.11
Sundry Debtors 272.31 665.0 920.58 100 244.21 338.06
Cash and Bank Balance 56.10 181.04 117.50 100 322.71 209.45
Total Current Assets 1003.98 1482.80 1707.63 100 147.69 170.09
Loans and Advances 926.99 1401.95 1203.54 100 151.24 129.83
Fixed Deposits 20.72 0 0 100 0 0
Total CA, Loans &
1951.69 2884.75 2911.17 100 147.81 149.16
Advances
Deffered Credit 0 0 0 0 0 0
Current Liabilities 3520.66 2893.39 2903.12 100 82.27 82.46
Provisions 1090.07 1439.86 1594.31 100 132.09 146.26
Total CL & Provisions 4610.73 4333.25 4497.43 100 93.98 97.54
Net Current Assets (2659.04) (1448.50) (1586.26) 100 54.47 59.66
Miscellaneous Expenses 0 0 0 0 0 0
Total Assets 5284.68 5308.40 5599.87 100 100.45 105.96

16. Page
16
Charts for Trend Analysis
108
106
104
102
100
98
96
Net Sales
2012 2013 2014
106
104
Net
Sales of
Bajaj
Net
Sales of
Hero 94
102
100
98
96
COGS
2012 2013 2014
COGS of
Bajaj
COGS of
Hero
120
115
110
105
100
95
90
GP
2012 2013 2014
GP of
Bajaj
GP of
Hero
140
120
100
80
60
40
20
0
PBDIT
2012 2013 2014
PBDIT of
Bajaj
PBDIT of
Hero
150
100
50
0
PBT
2012 2013 2014
PBT of
Bajaj
PBT of
Hero
120
100
80
60
40
20
0
Net Profit/PAT
2012 2013 2014
Net
Profit/P
AT of
Bajaj
Net
Profit/P
AT of
Hero

17. Net Current Assets
Page
17
120
100
80
60
40
20
0
Total Debt
2012 2013 2014
200
Total
Debt of
Bajaj
Total
Debt of
Hero 0
150
100
50
Total Liabilities
2012 2013 2014
Total
Liabilitie
s of
Bajaj
Total
Liabilitie
s of
Hero
150
100
50
0
Net Block
2012 2013 2014
200
Net
Block of
Bajaj
Net
Block of
Hero 0
150
100
50
Investments
2012 2013 2014
Investm
ents of
Bajaj
Investm
ents of
Hero
200
150
100
50
0
2012 2013 2014
Net
Current
Assets
of Bajaj
Net
Current
Assets
of Hero
200
150
100
50
0
Total Assets
2012 2013 2014
Total
Assets
of Bajaj
Total
Assets
of Hero

18. Interpretation of Trend Analysis
Components Bajaj Hero Which is better
Net Sales Upward Trend Upward trend Hero
COGS Downward Trend Upward Trend Bajaj
Gross Profit Upward Trend Upward Trend Bajaj
PBDIT Upward Trend Upward Trend Bajaj
PBT Upward Trend Upward Trend Bajaj
Net Profit(PAT) Upward Trend Upward Trend Bajaj
Total Debt Downward Trend Downward Trend Hero
Total Liabilities Downward Trend Downward Trend Hero
Net Block Upward Trend Downward Trend Bajaj
Investment Upward Trend Upward Trend Bajaj
By comparing and analyzing above table, Bajaj having upward trend in more
components as compare to Hero. So, performance of is Bajaj is better than Hero.
Page
18
Net Current
Asset
Upward Trend Upward Trend Bajaj
Total Asset Upward Trend Upward trend Bajaj

19. RATIO ANALYSIS OF BAJAJ AUTO LTD
PARTICULARS COMPUTATION OF RATIOS
2014 2013 2012
Page
19
1. Gross Profit ratio=
Gross Profit/ Net Sales*100
5879.21/20,149.51
=29.18%
5211.42/19,997.25
=26.06%
5006.23/19,516.25
=25.65%
2. Operating Profit Ratio=
Operating profit/ Net
Sales*100
4,632.54/20,149.51
=22.99%
4,266.77/19,997.25
=21.34%
4,001.81/19,516.25
=20.51%
3. Net Profit Ratio=
Net Profit/Net Sales*100
3,243.32/20,149.51
=16.10%
3,043.57/19,997.25
=15.22%
3,004.05/19,516.25
=15.39%
4.Equity ratio=
Equity / Total Capital
Employed
(Where, Total capital
Employed = Debt + Equity)
289.37/386.85
=0.75:1
289.37/360.64
=0.80:1
289.37/347.11
=0.83:1
5. Debt – Equity Ratio=
Debt/Equity
57.74/289.37
=0.2:1
71.27/289.37
=0.25:1
97.48/289.37
=0.34:1
6. Current Ratio=
Current Assets/Current
Liabilities
1931.41/3108.15
=0.62:1
1962.72/2762.93
=0.71:1
1548.22/2925.53
=0.53:1
7. Absolute Liquidity Ratio=
Cash/Current Liabilities
495.48/3,108.15
=0.16:1
558.86/2,762.93
=0.20:1
446.49/2,925.53
=0.15:1
8. Proprietary Ratio=
Proprietary Funds/Total
Assets
(Where, proprietary Fund =
Equity & Total Assets)
2,150.1/1962.72
=1.09:1
2,097.98/1962.72
=1.07:1
1,854.76/1,548.22
=1.20:1
9.Fixed Asset Turnover
Ratio=
Net Sales/Fixed Assets
20,149.51/2150.1
=9.37 times
19,997.25/2097.98
=9.53 times
19,516.65/1854.76
=10.52 times
10.Working Capital Turnover
Ratio=
Net Sales/Working Capital
(Where , Working Capital =
CA- CL)
19,516.65/1176.74
=16.59 times
19,997.25/800.21
=24.96 time
19,516.65/1377.31
=14.17 times
11. Return On Equity (ROE)=
PAT/Equity*100
3243.32/289.37
=1120.82%
3043.57/289.37
=1051.79%
3004.05/289.37
=1038.13%

20. RATIO ANALYSIS OF HERO MOTOCORP
PARTICULARS COMPUTATION OF RATIOS
2014 2013 2012
Page
20
1. Gross Profit ratio=
Gross Profit/ Net Sales*100
5879.31/25275.47
=23.26%
5211.42/23768.11
=21.93%
5006.23/23586.8
=21.22%
2. Operating Profit Ratio=
Operating profit/ Net
Sales*100
4632.54/25275.47
=18.32%
4266.77/23768.11
=17.95%
4001.81/23586.8
=16.97%
3. Net Profit Ratio=
Net Profit/Net Sales*100
3243.32/25275.47
=12.83%
3043.57/23768.11
=12.81%
3004.05/23586.8
=12.74%
4.Equity ratio=
Equity / Total Capital
Employed
(Where, Total capital
Employed = Debt + Equity)
5599.87/5599.87
=1:1
5006.24/5308.40
=0.94:1
4289.83/5284.68
=0.81:1
5. Debt – Equity Ratio=
Debt/Equity
0/5599.87
=0
302.16/5006.24
=0.06:1
994.85/4249.89
=0.23:1
6. Current Ratio=
Current Assets/Current
Liabilities
1707.63/2903.12
=0.90:1
1482.80/2893.39
=0.51:1
1003.98/3520.66
=0.29:1
7. Absolute Liquidity Ratio=
Cash/Current Liabilities
117.50/2903.12
=0.41:1
181.04/2893.39
=0.63:1
56.10/3520.66
=0.02:1
8. Proprietary Ratio=
Proprietary Funds/Total
Assets
(Where, proprietary Fund =
Equity & Total Assets)
5599.87/5599.87
=1:1
5006.24/5308.40
=0.94:1
4289.83/5284.68
=0.81:1
9.Fixed Asset Turnover
Ratio=
Net Sales/Fixed Assets
25275.47/2243.25
=11.26 times
23768.11/3070.98
=7.74 times
23586.8/3785.51
=6.23 times
10.Working Capital Turnover
Ratio=
Net Sales/Working Capital
(Where , Working Capital =
CA- CL)
25275.47/1195.49
=21.14 times
23768.11/1410.59
=16.85 times
23586.8/2516.68
=9.37 times
11. Return On Equity (ROE)=
PAT/Equity*100
3243.32/5599.87
=58%
3043.57/5006.24
=61%
3004.05/4289.83
=70%

21. Interpretation of Ratio- Year 2012
Name of Ratio Idol Ratio Bajaj Ratio Hero Ratio Which Is Better
Page
21
Gross Profit
Ratio
Higher – Better 25.65% 21.22% Bajaj
Operating Profit
Ratio
Higher – Better 20.51% 16.97% Bajaj
Net Profit Ratio Higher – Better 15.39% 12.74% Bajaj
Equity Ratio 0.83:1 0.81:1
Bajaj
Debt-Equity
Ratio
2:1 0.34:1 0.23:1 Bajaj
Current Ratio 2:1 0.53:1 0.29:1 Bajaj
Absolute
Liquidity Ratio
1:1 0.15:1 0.02:1 Bajaj
Proprietary
Ratio
1:2 1.20:1 0.81:1 Bajaj
Fixed Asset
Turnover Ratio
5 times
Higher – Better
utilization
10.52 Times 6.23 times Bajaj
Working Capital
Turnover Ratio
Higher-efficient
utilization
very high ratio is
not a good
situation
14.17 Times 9.37 times Bajaj
Return to Equity
Ratio
Higher – Better 1038.31% 70% Bajaj
By comparing and analyzing above table, i.e. Ratio in year 2012, Bajaj was in good position
as compare to Hero.

22. Interpretation of Ratio- Year 2013
Name of Ratio Idol Ratio Bajaj Ratio Hero Ratio Which Is Better
Page
22
Gross Profit
Ratio
Higher – Better 26.06% 21.93% Bajaj
Operating Profit
Ratio
Higher – Better 21.34% 17.95% Bajaj
Net Profit Ratio Higher – Better 15.22% 12.81% Bajaj
Equity Ratio 0.80:1 0.94:1 Hero
Debt-Equity
Ratio
2:1 0.25:1 0.06:1 Bajaj
Current Ratio 2:1 0.71:1 0.51:1 Bajaj
Absolute
Liquidity Ratio
1:1 0.20:1 0.63:1 Hero
Proprietary
Ratio
1:2 1.07:1 0.94:1 Bajaj
Fixed Asset
Turnover Ratio
5 times
Higher – Better
utilization
9.53 times 7.74 times Bajaj
Working Capital
Turnover Ratio
Higher-efficient
utilization
very high ratio is
not a good
situation
24.96 time 16.85 times
Bajaj
Return to
Equity Ratio
Higher – Better 1051.79% 61% Bajaj
By comparing and analyzing above table, i.e. Ratio in year 2013, Bajaj was in good position
as compare to Hero.

23. Interpretation of Ratio- Year 2014
Name of Ratio Idol Ratio Bajaj Ratio Hero Ratio Which Is Better
Page
23
Gross Profit
Ratio
Higher – Better 29.18% 23.26% Bajaj
Operating Profit
Ratio
Higher – Better 22.99% 18.32% Bajaj
Net Profit Ratio Higher – Better 16.10% 12.83% Bajaj
Equity Ratio 0.75:1 1:1 Hero
Debt-Equity
Ratio
2:1 0.2:1 0:1 Hero
Current Ratio 2:1 0.62:1 0.90:1 Hero
Absolute
Liquidity Ratio
1:1 0.16:1 0.41:1 Hero
Proprietary
Ratio
1:2 1.09:1 1:1 Bajaj
Fixed Asset
Turnover Ratio
5 times
Higher – Better
utilization
9.37 times 11.26 times Hero
Working Capital
Turnover Ratio
Higher-efficient
utilization
very high ratio is
not a good
situation
16.59 times 21.14 times Hero
Return to
Equity Ratio
Higher – Better 1120.82% 58% Bajaj
By comparing and analyzing above table, i.e. Ratio in year 2014, Bajaj is in good some
aspects and some time hero is good in some aspects .