2. “A
COMPARATIVE STUDY REPORT
ON
BAJAJ & TVS ”
Submitted in the partial fulfillment of the degree of the bachelor of business
Administration
Third year B.B.A
2
SUBMITTED TO:
GOVERNMENT BBA College
Khokhara road
Maninagar
AHMEDABAD.
Under the guidance of
Prof:hardik sir,ritika thakkar
GOVERNMENT BBA College
Submitted By:
GROUP :7
3. NAME OF GROUP MEMBER
Roll no. NAME
5061 SHUKLA SHASHANT B.
5062 SOLANKI ASMITA M.
5063 SOLANKI SANJAY H.
5064 SONI KINJAL M.
5065 SONI NIRAJ H.
5066 THAKOR PURVESH A.
5067 TIWARI VIKASH R.
5068 UPARA SANDIP G.
5069 VANIYA BALVANT G.
5070 VANJARA SANJAY K.
3
4. 4
Strengths
1. Ability to understand customer’s needs and wants
2. Recognized and established brand name
3. Effective advertising capability
4. Its after sells service
5. Technology
6. Maintenance cost is low
7. Resell value is high.
Weaknesses
1. R&D is not close to the TVS manufacturing plant
2. Brand name is too poor
3. Less promotional activities
4. Having low product range / cycle
5. Low advertisement
Opportunities
1. Global expansion
2. Expansion of target market (include women)
3. Become India’s leader in the scooter market
4. Financial help easily available
5. Relatively low rate of interest and the discount of prices offered by the dealers and
manufacturers lead to the increasing demand for two-wheeler vehicles
6. Large market for the high performance segment which is increasing with the upliftment of the
lifestyle of people
Threats
1. Honda Motorcycles and Scooters India can take away
2. market share and cause joint venture to go sour
3. Bajaj Motors is a strong competitor
4. FDI announced in Automobiles is 100%.
5. 5
5. Petrol price increases
6. Pollution norms
7. Aluminum and steel price increase
CERTIFICATE
This is to certify that a project report on “BAJAJ V/S TVS”
Has been prepared and submitted by UPARA SANDIP G. students of
T.Y.B.B.A to government BBA college affiliated to Gujarat University
in partial fulfillment of completion of “practical studies” at the third
year of B.B.A programmed for the year 2012-13.
Principal:
Professor in charge
Date:…………………..
7. PREFECE
A company is publishing it’s annual report for share holder as per the companies
act. How ever without analyzing the company’s annual report. We can not know the actual
position of the company. The share holder’s by the studying the balance sheet. Sometimes feel safe
that they have instead in the company Where profit are increasing only the ratio analysis can
appropriately unable assessments of company’s actual profitability.
Here this practical activity of preparing report on financial analysis is very
important for a student who studying in the business administration programmed. The preparation
of this report is based on the financial analysis annual report of three consecutive year of a public
limited company.
7
8. ACKNOWLEDGEMENT
During training period we got marvelous opportunity for making project report of professional
development. it has helped widening the horizons of my knowledge by giving me aspiration. Through
training, which I have received has enhanced my skills both professionally as well as personally. It
has improvised my overall perspective by bird’s eye view in the galaxy of today’s dynamic scenario.
I thankful to GUJARAT UNIVERSITY who gives me chance for doing this training.
I am very thankful to first my collage principal Dr. M.G.BHATT and head of department of
B.B.A PROf-…………………………… who have given me this opportunity to make this project report and
training.
I am also very thankful to my project coordinator MISS SNEHA SHETTY who guided me through
out the project and gave me valuable suggestion and encouragement.
8
9. PRAT – A
1 Industry
2 Company profile and history
3 Board of directors
4 Vision statement
5 Mission statement
6 Logo / tagline
7 Comparison on the basis of different factor
Product
Price
Place
Market share
8 S.w.o.t analysis
9 Michel porter’s five force analysis
PART -B
1 Research methodology
Objective of the research
Research process
1. Research design
2. Sample design
3. Data collection
4. Data analysis
2 Finding
3 Suggestion
4 Conclusion
PART-C
1 Comparative financial statement
2 Common size statement
3 Trend analysis
4 Ratio analysis
5 Cash flow statement
Questionnaire
Bibliography
9
11. Indian Two-Wheeler Industry: A Perspective
Automobile is one of the largest industries in global market. Being the leader in product and
process technologies in the manufacturing sector, it has been recognised as one of the drivers of
economic growth. During the last decade, well¬-directed efforts have been made to provide a
new look to the automobile policy for realising the sector's full potential for the economy. Steps
like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy
framework in consonance with WTO requirements have set the industry in a progressive track.
Removal of the restrictive environment has helped restructuring, and enabled industry to absorb
new technologies, aligning itself with the global development and also to realise its potential in
the country. The liberalisation policies have led to continuous increase in competition which has
ultimately resulted in modernisation in line with the global standards as well as in substantial cut
in prices. Aggressive marketing by the auto finance companies have also played a significant role
in boosting automobile demand, especially from the population in the middle income group.
11
Evolution of Two-wheeler Industry in India
Two-wheeler segment is one of the most important components of the automobile sector that has
undergone significant changes due to shift in policy environment. The two-wheeler industry has been in
existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds.
According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of
units sold was about 80 per cent during 2003-¬04. This high figure itself is suggestive of the importance of
the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix
and technology, all critical areas of functioning of an industry, were effectively controlled by the State
machinery. The lapses in the system had invited fresh policy options that came into being in late sixties.
Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange
Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respecti vely. This
controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of
efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology. Recognition of the
damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a
more prominent shape with the introduction of the New Economic Policy (NEP) in 1985.
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation
and tight control to a more liberalised and competitive era. Two major results of policy changes during
these years in two-wheeler industry were that the, weaker players died out giving way to the new
entrants and superior products and a sizeable increase in number of brands entered the market that
compelled the firms to compete on the basis of product attributes. Finally, the two-¬wheeler industry in
the country has been able to witness a proliferation of brands with introduction of new technology as well
as increase in number of players. However, with various policy measures undertaken in order to increase
12. the competition, though the degree of concentration has been lessened over time, deregulation
of the industry has not really resulted in higher level of competition.
12
A Growth Perspective
The composition of the two-wheeler industry has witnessed sea changes in the post-reform
period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the
Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the
total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of
the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6
per cent respectively. A clear picture of the motorcycle segment's gaining importance during this
period is exhibited by the Figures 1, 2 and 3 depicting total sales , share and annual growth during
the period 1993-94 through 2003-04.
National Council of Applied Economic Research (NCAER) had forecast two-wheeler demand
during the period 2002¬-03 through 2011-12. The forecasts had been made using econometric
technique along with inputs obtained from a primary survey conducted at 14 prime cities in the
country. Estimations were based on Panel Regression, which takes into account both time series
and cross section variation in data. A panel data of 16 major states over a period of 5 years
ending 1999 was used for the estimation of parameters. The models considered a large number
of macro-economic, demographic and socio-economic variables to arrive at the best estimations
for different two-wheeler segments. The projections have been made at all India and regional
levels. Different scenarios have been presented based on different assumptions regarding the
demand drivers of the two-wheeler industry. The most likely scenario assumed annual growth
rate of Gross Domestic Product (GDP) to be 5.5 per cent during 2002¬-03 and was anticipated to
increase gradually to 6.5 per cent during 2011¬-12. The all-India and region-wise projected
growth trends for the motorcycles and scooters are presented in Table 1. The demand for
mopeds is not presented in this analysis due to its already shrinking status compared to'
motorcycles and scooters.
It is important to remember that the above-mentioned forecast presents a long-term growth for
a period of 10 years. The high growth rate in motorcycle segment at present will stabilise after a
certain point beyond which a condition of equilibrium will set the growth path. Another
important thing to keep in mind while interpreting these growth rates is that the forecast could
consider the trend till 1999 and the model could not capture the recent developments that have
taken place in last few years. However, this will not alter the regional distribution to a significant
extent.
14. The present economic situation of the country makes the scenario brighter for short-term
demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004.
Both industry and the service sectors have shown high growth during this period at the rates of
8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP growth
to some extent. Taking into account all these factors along with other leading indicators including
government spending, foreign investment, inflation and export growth, NCAER has projected an
average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast
suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very recently,
IMF has portrayed a sustained global recovery in World Economic Outlook. A significant s hift has
also been observed in Indian households from the lower income group to the middle income
group in recent years. The finance companies are also more aggressive in their marketing
compared to previous years. Combining all these factors, one may visualise a higher growth rate
in two-wheeler demand than presented in Table 1,
particularly for the motorcycle segment.
There is a large untapped market in semi-urban and rural areas of the country. Any strategic
planning for the two¬-wheeler industry needs to identify these markets with the help of available
statistical techniques. Potential markets can be identified as well as prioritised using these
techniques with the help of secondary data on socio-economic parameters. For the two-wheeler
industry, it is also important to identify the target groups for various categories of motorcycles
and scooters. With the formal introduction of secondhand car market by the reputed car
manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry
needs to upgrade its market information system to capture the new market and to maintain its
already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban
areas also requires more focussed attention. It is also imperative to initiate measures to make the
presence of Indian two-wheeler industry felt in the global market. Adequate incentives for
promoting exports and setting up of institutional mechanism such as Automobile Export
Promotion Council would be of great help for further surge in demand for the Indian two-wheeler
industry.
14
16. 16
Company profile & History
Bajaj Auto Limited
Type Public
Industry Automobile
Headquarters Pune, Maharashtra, India
Key people Rahul Bajaj (Chairman), Rajiv Bajaj (Managing Director)
Products Bikes, scooter, Autorickshaw
Revenue 16,975 crore (US$3.44 billion) [1]
Net income 3,340 crore (US$677.35 million)
Employees 10,250 (2006-07)
Parent Bajaj Group
Website bajajauto.com
History:
Founded in 1926, at the height of India's movement for independence from the British, the group
has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed
which are characteristic of the group today, are often traced back to its birth during those days of
relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close
confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This
close relationship and his deep involvement in the independence movement did not leave
Jamnalal Bajaj with much time to spend on his newly launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to
Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to
the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various
manufacturing activities.
17. The present Chairman and Managing Director of the group, Rahul Bajaj, took charge of the
business in 1965. He is one of India’s most distinguished business leaders and internationally
respected for his business acumen and entrepreneurial spirit.
Bajaj Auto is a major Indian vehicle manufacturer started by Jamnalal Bajaj from Rajasthan in the
1930s. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre
Ahead. Bajaj Auto makes and exports automobiles, scooters, motorcycles and the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946.[2]It features at 1639 in
forbes 2011 list.
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.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
Bajaj Auto came into existence on 29 November 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 one million vehicles in a year.
According to the authors of Globality: Competing with Everyone from Everywhere for Everything,
Bajaj has grown operations in 50 countries by creating a line of value-for-money bikes targeted to
the different preferences of entry-level buyers.[4]Contents
17
1 Timeline of new releases
2 Spinoffs and acquisitions
3 Products
4 Low cost cars
5 References
6 External links
19. 2009 - Bajaj Pulsar 135(December 9) (January) Bajaj XCD 135 cc , Bajaj Pulsar 150 DTS-i UG IV,
Bajaj Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220 DTS-i , Bajaj Discover 100 DTS-Si, Kawasaki Ninja
250R
19
Spinoffs and acquisitions:
The demerger of Bajaj Auto Ltd into three separate corporate entities —Bajaj Finserv Ltd (BFL),
Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)—was completed with the
shares listing on 26 May 2008.
In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company
of KTM Sportmotocycles AG). The two companies have signed a cooperation deal, by which KTM
will provide the know-how for joint development of the water-cooled four-stroke 125 and 250 cc
engines, and Bajaj will take over the distribution of KTM products in India and some other
Southeast Asian nations. Bajaj said it is open to taking a majority stake in KTM and is also looking
at other takeover opportunities. On 8 January 2008, Managing Director Rajiv Bajaj confirmed the
collaboration and announced his intention to gradually increase Bajaj's stake in KTM to 25%.
Products:
Main article: List of Bajaj Auto products
Bajaj has made a number of motorcycles, scooters and cars. Motorcycles in current production
are the XCD, Platina, Discover, Pulsar and Avenger. Bajaj also produces many motorcycles for
other manufacturers, such as the Kawasaki Ninja 250R, and new for 2011, the KTM Duke
125.[citation needed] Cars include the Bajaj ULC ultra-low-cost car.
Low cost cars:
Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor, will aim at a
fuel-efficiency of 30 kilometres per litre (85 mpg-imp; 71 mpg-US) (3.3 L/100 km), or twice an
average small car, and carbon dioxide emissions of 100 g/km. The car is scheduled to be launched
in 2012.
It is a Tata Nano competitor. The Bajaj venture will have an initial capacity of 400,000 units, while
Tata expects eventual demand of one million Nanos.
20. Type: Listed Indian Public Limited Company (Subsidiary of Sundaram-Clayton Limited)
20
Traded as: BSE: 532343, NSE: TVSMOTOR
Industry: Automobiles
Founded: 1978
Founder(s): Venu Srinivasan, Headquarters, Chennai, India
Key people: Venu Srinivasan, Chairman
K N Radhakrishnan, President & CEO
S G Murali, CFO
H S Goindi, President Marketing
Harne Vinay Chandrakant, President NPI
R Anandakrishnan, VP Business Planning
BLP Simha, President Director, PT.TVS Indonesia
Products: TVS Apache, TVS Scooty, TVS Jive, TVS 50
Revenue: 6,298.66 Crores
Profit: 194.58 Crores
Total equity:999.41 Crores
Parent: Sundaram-Clayton Limited
Subsidiaries: PT TVS Motor, Indonesia
Website: www.tvsmotor.in
21. 21
HISTORY:
TVS Motor traces its origins back to the entrepreneurial spirit of Thirukurungudi
Venkagaruswamy Sundaram Iyengar who gave up lucrative careers in the Indian Railways and in
banking to set up his own business. He began with Madurai's first bus service in 1912 and
founded T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its presence in the
transportation business with a large fleet of trucks and buses under the name of Southern
Roadways Limited. When he died in 1955 his sons took the company ahead wi th several forays in
the automobile sector, including finance, insurance, manufacture of two-wheelers, tyres and
components. The group has managed to run 33 companies that account for a combined turnover
of nearly $3 billion.
Early years:
Sundaram Clayton, then the flagship company, was founded in 1962 in collaboration with Clayton
Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts, compressors and various
other automotive parts. The company set up a plant at Hosur in 1978 to manufacture mopeds as
part of a new division. A technical collaboration with the Japanese auto giant resulted in the
joint-venture And Suzuki Limited in 1982 between Sundaram Clayton Ltd and Suzuki Motor
Corporation. Commercial production of motorcycles began in 1984.
Suzuki relationship:
TVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer to
enable design and manufacture of two-wheelers specifically for the Indian market. Rechristened
TVS-Suzuki, the company brought out several models such as the Suzuki Samurai, Suzuki Shogun
and Suzuki Fiero. Differences in opinion on how to run the join venture eventually led to the
partners going their separate ways in 2001 with the company being renamed TVS Motor,
relinquishing rights to use the Suzuki name. There was also a 30 month moratorium period during
which Suzuki promised not to enter the Indian market with competing two-wheelers. The
company also got over a period of labour unrest that required Chairman Venu Srinivasan to take
tough measures to resurrect a company that was in a state of turmoil. He would go on to invest in
new technology, nurture in-house design, and implement Toyota-style quality programs.
Recent:
Over the years TVS Motor has grown to be the largest in the group, both in terms of size and
turnover, with four state of the art manufacturing plants in Hosur, Mysore and Nalagarh in India
and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indian
22. Over the years TVS Motor has grown to be the largest in the group, both in terms of size and
turnover, with four state of the art manufacturing plants in Hosur, Mysore and Nalagarh in India
and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indian
automobile industry, notable among them being the introduction of India's first two-seater
moped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds,
having sold 7 million units. It also introduced the TVS Scooty, which is India's second largest brand
in the scooterette segment. The TVS Jive launched in November 2009 became India's first clutch-free
motorbike aimed at a stress-free rider experience. while the unisex scooter Wego is targeted
at urban couples, featuring body-balance technology for easier handling.
22
23. 23
MANAGEMENT TEAM:
Name Designation
Abraham Joseph Chief Technology Officer
Amrut Rath Vice President (Human Resources)
C P Tripathi Vice President (CSR)
D J Balaji Rao Director
D S Mehta Director
Eric Vas President (New Projects)
J N Godrej Director
J Sridhar Company Secretary & Compliance Officer
J Sridhar Secretary
K Srinivas President (Retail Finance)
Kantikumar R Podar Director
Kevin D’sa President (Finance)
Madhur Bajaj Vice Chairman
Manish Kejriwal Director
Nanoo PamnaniDirector
Naresh ChandraDirector
Niraj Bajaj Director
P Murari Director
Pradeep Shrivastava Chief Operating Officer
R C Maheshwari President (Commercial Vehicle Business)
Rahul Bajaj Chairman / Chair Person
Rajiv Bajaj CEO
24. 24
Rajiv Bajaj Managing Director
Rakesh Sharma President (International Business)
S H Khan Director
S Ravikumar Senior Vice President
S Sridhar President (Motorcycle Business)
Sanjiv Bajaj Executive Director
Shekhar Bajaj Director
Suman Kirloskar Director
25. 25
Name Designation
C R Dua Director
H Lakshmanan Director
K N Radhakrishnan President & CEO
K S Bajpai Director
K S Srinivasan Company Secretary & Compliance Officer
K S Srinivasan Secretary
Prince Asirvatham Director
R Ramakrishnan Director
S G Murali Executive Vice President - Finance
T Kannan Director
Venu Srinivasan CEO
Venu Srinivasan Chairman and Managing director
27. 27
VISSION AND MISIION:
Bajaj doesn't have a straight vision or mission statement. They define it in terms of brand
identity, brand essence (derived from mission) and brand values.
Our Brand Identity:
Our Brand is the visual expression of our thoughts and actions. It conveys to everyone our
intention to constantly inspire confidence. Our customers are the primary audience for our
brand. Indeed, our Brand Identity is shaped as much by their belief in Bajaj as it is by our own
vision. Everything we do must always reinforce the distinctiveness and the power of our brand.
We can do this by living our brand essence and by continuously seeking to enhance our
customers’ experience. In doing so, we ensure a special place for ourselves in the hearts and the
minds of our customers.
Our Brand Essence:
Our Brand Essence is the soul of our brand. Our brand essence encapsulates our mission at Bajaj.
It is the singular representation of our terms of endearment with our customers. It provides the
basis on which we grow profitably in the market. Our Brand Essence is Excitement. Bajaj strives to
inspire confidence through excitement engineering.Blending together youthful creativity and
competitive technology to exceed the spoken and the implicit expectations of our customers. By
challenging the given. By exploring the unknown and thereby stretching ourselves towards
tomorrow, today.
Our Brand Values:
We live our brand by its values of Learning, Innovation, Perfection, Speed and Transparency.
Bajaj will constantly inspire confidence through excitement engineering.
Learning
Learning is how we ensure proactivity. It is a value that embraces knowledge as the platform for
building well informed, reasoned, and decisive actions.
Innovation
Innovation is how we create the future. It is a value that provokes us to reach beyond the obvious
in pursuit of that which exceeds the ordinary.
28. 28
Perfection
Perfection is how we set new standards. It is a value that exhibits our determination to excel by
endeavoring to establish new benchmarks all the time.
Speed
Speed is how we convey clear conviction. It is a value that keeps us sharply responsive, mirroring
our commitment towards our goals and processes.
Transparency
Transparency is how we characterise ourselves. It is a value that makes us worthy of credibility
through integrity, of trust through sensitivity and of loyalty through interdependence
29. 29
TVS Motor Company – Mission:
We are committed to being a highly profitable, socially responsible, and leading manufacturer of
high value for money, environmentally friendly, lifetime personal transportation products under
the TVS brand, for customers predominantly in Asian markets and to provide fulfilment and
prosperity for employees, dealers and suppliers.
Vision Statement:
TVS Motor - Driven by the customer
TVS Motor will be responsive to customer requirements consonant with its core competence and
profitability. TVS Motor will provide total customer satisfaction by giving the customer the right
product, at the right price, at the right time.
TVS Motor - The Industry Leader
TVS Motor will be one among the top two two-wheeler manufacturers in India and one among
the top five two-wheeler manufacturers in Asia.
TVS Motor - Global overview
TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing on
the expertise developed in the areas of manufacturing, technology and marketing. The thrust will
be to achieve a significant share for international business in the total turnover.
TVS Motor - At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking
against international leaders.
TVS Motor - Committed to Total Quality
TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting
TQM as a way of life. TVS Motor believes in the importance of the process. People and projects
will be evaluated both by their end results and the process adopted.
TVS Motor - The Human Factor
TVS Motor believes that people make an organization and that its well-being is dependent on the
commitment and growth of its people. There will be a sustained effort through systematic
30. training and planning career growth to develop employees talents and enhance job satisfaction.
TVS Motor will create an enabling ambience where the maximum self-actualisation of every
employee is achieved. TVS Motor will support and encourage the process of self-renewal in all its
employees and nurture their sense of self worth.
30
TVS Motor - Responsible Corporate Citizen
TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects with all
business activities and ensure protection of employees and environment including development
of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and
interdependence with its customers, employees, dealers and suppliers.
34. 34
Comparison on the basis of different :
Saffire Zi 35.4 Mumbai, India
Bajaj Chetak Metallic 28.4 Mumbai, India
Bajaj Chetak 4-stroke 28.4 Mumbai, India
Bajaj Byk - 30.6 Mumbai, India
Bajaj Byk M 31.1 Mumbai, India
Bajaj Caliber Croma 45.1 Mumbai, India
Bajaj Caliber 115 43 Mumbai, India
Bajaj Boxer AT 30.4 Mumbai, India
Bajaj Boxer CT New 35.6 Mumbai, India
Bajaj Boxer AR 30.5 Delhi, India
Bajaj 150 Kick-start 50.8 Mumbai, India
Bajaj 150 DTSi Kick start 51.8 Mumbai, India
Bajaj Pulsar 150 DTSi Electric start 55.2 Mumbai, India
Bajaj Pulsar 180 New 59.2 Mumbai, India
Bajaj Eliminator - 86.9 Mumbai, India
Bajaj Wind 125 drum 45 Mumbai, India
Bajaj Wind 125 disc 47.1 Mumbai, India
Bajaj Discover Kickstart 42.6 Mumbai, India
Bajaj Auto Ltd Discover Electric start 45.6
35. TVS Motor TVS Scooty ES 27.3 Mumbai, India
TVS Motor TVS Scooty Pep Deluxe 33.4 Mumbai, India
TVS Motor Max 100 27.7 Mumbai, India
TVS Motor Max 100 R 34 Mumbai, India
TVS Motor Max DLX 29.8 Mumbai, India
TVS Motor Victor GX 43.8 Mumbai, India
TVS Motor Victor GLX 45.6 Mumbai, India
TVS Motor Fiero F2Fx drum 48 Mumbai, India
TVS Motor Fiero F2FX disc 51.8 Mumbai, India
TVS Motor Fiero FX drum 48.1 Mumbai, India
TVS Motor Fiero FX disc 55.5 Mumbai, India
TVS Motor Centra 40.5 Mumbai, India
35
37. Buoyed by a 100 per cent jump in sales and a 10 per cent increase in market share in September-
October, Bajaj Auto is aiming for a 26-27 per cent maket share in motorcycles in FY10.
"Our overall motorcycles market share in FY09 was 22 per cent. We have clocked a robust
performance so far and should achieve a market share of 26-27 per cent in FY10," Bajaj Auto's
two-wheeler division's CEO S Sridhar told PTI here.
More than 70 per cent of this market share is expected to be powered by its two best-sellers --
Pulsar and Discover, he said.
Bajaj Auto plans to launch a new bike from the Pulsar family in early-2010 and also ramp up
capacity of its Discover from 90,000 to one lakh units in two-months time, he said
37
38. TVS Motor has continually worked on innovating the motorcycle segment along with two wheeler
range. The Suzuki Shaolin, developed by TVS Suzuki is India's first 5 speed, 140 cc motorcycle.
Another example of the company success is TVS Scooty, a 60 cc Scooterette which keep one step
ahead of its time in India.
TVS Motor has been coveted 2 IT awards, one of them is bagging the SAP ACE 2008 award for
Customer Excellence and the other one is 2008 Symantec South Asia Visionary Award. Along with
this, it is the first company in the world to be honored with The Deming Prize for Total Quality
Management. In September 2008, the company has got 19% growth for registering total two
wheeler sales of 137,246 units .
The company is the third largest two-wheeler manufacturer in India and ranks among the top ten
globally. The company was the first in India to launch 2-seater 50cc moped and 100cc Indo-
Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty, TVS Centra and TVS Fiero
are the popular bikes in Indian market.
38
40. 40
Strengths:
Highly experienced management
Product design and development capabilities
Extensive R & D focus
Widespread distribution network
High performance products across all categories
High export to domestic sales ratio
Great financial support network (For financing the automobile)
High economies of scale
High economies of scope
Weaknesses:
Hasn't employed the excess cash for long.
Still has to establish a brand to match Hero Honda's Splendor in commuter segment.
Not a global player in spite of huge volumes.
Not a globally recognizable brand (unlike the JV partner Kawasaki)
Opportunities:
Double-digit growth in two-wheeler market.
Untapped market above 180 cc in motorcycles.
More maturity and movement towards higher-end motorcycles.
The growing gearless trendy scooters and scoottee market.
Growing world demand for entry-level motorcycles especially in emerging markets.
It is also proposing to launch motorcycles from Austrian bike maker KTM, in which Bajaj
Auto has over 25 per cent stake.
41. 41
Threats:
The competition catches-up any new innovation in no time.
Threat of cheap imported motorcycles from China.
Margins getting squeezed from both the directions (Price as well as Cost)
TATA Ace is a serious competition for the three-wheeler cargo segment.
42. 42
Strengths:
8. Ability to understand customer’s needs and wants
9. Recognized and established brand name
10.Effective advertising capability
11.Its after sells service
12.Technology
13.Maintenance cost is low
14.Resell value is high.
Weaknesses:
6. R&D is not close to the TVS manufacturing plant
7. Brand name is too poor
8. Less promotional activities
9. Having low product range / cycle
10. Low advertisement
Opportunities
7. Global expansion
8. Expansion of target market (include women)
9. Become India’s leader in the scooter market
10. Financial help easily available
11. Relatively low rate of interest and the discount of prices offered by the dealers and
manufacturers lead to the increasing demand for two-wheeler vehicles
12. Large market for the high performance segment which is increasing with the upliftment of
the lifestyle of people
43. 43
Threats:
8. Honda Motorcycles and Scooters India can take away
9. market share and cause joint venture to go sour
10. Bajaj Motors is a strong competitor
11. FDI announced in Automobiles is 100%.
12. Petrol price increases
13. Pollution norms
14. Aluminum and steel price increase
45. 45
MICHEL PORTER’S FIVE FORCE ANALYSIS :-
1} THREAT OF NEW
ENTRANTS
BAJAJ auto sector has low
chances of entry in the
industries
due to the huge investment low
chances of new entries.. but
foreign company can invove
2}THREAT OF SUBSTITUTES low threat of substitute
because mostly people use
bikes and two wheeler what
they produce
Low threat of substitute product
because they produce average
cost product.
3}BUYER POWER Buyers influence is low ,they
have to buy there product at
given price
Buyers influence is low, they
have to buy there product at
given price
4}SUPPLIER POWER Suppliers power is also
somewhat high due to the
rivalry of firms in automobiles
Suppliers power is also
somewhat high due to the
rivalry of firms in automobiles
5}RIVALRY AMONG FIRMS Firms like t.v.s , hero , Honda,
Mahindra , l.m.l. are the main
rival of the bajaj
Firms like bajaj , hero , Honda,
Mahindra , l.m.l. are the main
rival of the t.v.s
47. 47
OBJECTIVE OF THE RESEACH:
The main objective of our group for conducting this research is to comparison of two leading
company in india in automobile sector viz. T.V.S. & BAJAJ.
We have conducted this research for two know who’s product is more famous among the general
people and why they prefers a particular bikes or scooter .
The research objective is two to whom the public thinks is leading company , not from the market
share but from the brand name and brand image in the perception in consumers mind.
Both company are very competitive , but we want to know to whom the public thinks is very
though competitor than the other .
48. 48
RESEARCH PROCESS:-
The chief responsibility of a university is to produce and disseminate new knowledge. New
knowledge is created through research. Research is based on primary and secondary sources,
often together with original data collected via research "instruments" (surveys, interviews,
questionnaires, "focus groups," etc.) to produce new knowledge on a particular topic.
In addition to primary sources and original instruments, secondary sources are used to provide an
overview of existing published knowledge on a topic, and possible current debates about the
topic. The background provided by secondary sources provides a contextual background and
establishes how the new knowledge described in a paper differs from what is already known.
Research may be categorized as either Basic or Applied:
Basic research looks at causes, effects, and the nature of things
Applied research trys to find answers and solutions to specific problems
50. 50
Research design:-
A Research design is concerned with turning a research question into a testing project. The best
design depends on the research questions. Every design has its positive and negative sides. The
research design has been considered a "blueprint" for research, dealing with at least four
problems: what questions to study, what data are relevant, what data to collect, and how to
analyze the results.
Research design can be divided into fixed and flexible research designs (Robson, 1993). Others
have referred to this distinction with ‘quantitative research designs’ and ‘qualitative research
designs’. However, fixed designs need not be quantitative, and flexible design need not be
qualitative. In fixed designs the design of the study is fixed before the main stage of data
collection takes place. Fixed designs are normally theory-driven; otherwise it’s impossible to
know in advance which variables need to be controlled and measured. Often these variables are
quantitative. Flexible designs allow for more freedom during the data collection. One reason for
using a flexible research design can be that the variable of interest is not quantitatively
measurable, such as culture. In other cases, theory might not be available before one starts the
research.
51. 51
Sample design process:-
Process
1. Defining the population of concern
2. Specifying a sampling frame, a set of items or events possible to measure
3. Specifying a sampling method for selecting items or events from the frame
4. Determining the sample size
5. Implementing the sampling plan
6. Sampling and data collecting
1. Defining the population of concern:-
Successful statistical practice is based on focused problem definition. In sampling, this
includes defining the population from which our sample is drawn. A population can be
defined as including all people or items with the characteristic one wishes to understand.
Because there is very rarely enough time or money to gather information from everyone
or everything in a population, the goal becomes finding a representative sample (or
subset) of that population.
Sometimes that which defines a population is obvious. For example, a manufacturer
needs to decide whether a batch of material from production is of high enough quality to
be released to the customer, or should be sentenced for scrap or rework due to poor
quality. In this case, the batch is the population.
We have conducting the research for those are able to purchse bikes or who are holder of
two wheelers . because we want to compare the two leading companies in automobile
sector viz. bajaj and tvs.
So we are only concern with the people who are the holders of two wheelers. Of eighter
bajaj or tvs bikes holder
52. 2. Specifying a sampling frame, a set of items or events possible to measure
In the most straightforward case, such as the sentencing of a batch of material from
production (acceptance sampling by lots), it is possible to identify and measure every
single item in the population and to include any one of them in our sample. However, in
the more general case this is not possible. There is no way to identify all rats in the set of
all rats. Where voting is not compulsory, there is no way to identify which people will
actually vote at a forthcoming election (in advance of the election). These imprecise
populations are not amenable to sampling in any of the ways below and to which we
could apply statistical theory.
As a remedy, we seek a sampling frame which has the property that we can identify every
single element and include any in our sample. The most straightforward type of frame is a
list of elements of the population (preferably the entire population) with appropriate
contact information. For example, in an opinion poll, possible sampling frames include an
electoral register and a telephone directory.
3. Specifying a sampling method for selecting items or events from the frame
We have used non probability sample . to select the sample because our research is to
find out the leading company from the bajaj and tvs .. so we can not able to get exact
figure through random sampling.
So we have conducted the research design as non probabability
Non-probability sampling is any sampling method where some elements of the
population have no chance of selection (these are sometimes referred to as 'out of
coverage'/'undercovered'), or where the probability of selection can't be accurately
determined. It involves the selection of elements based on assumptions regarding the
population of interest, which forms the criteria for selection. Hence, because the selection
of elements is nonrandom, nonprobability sampling does not allow the
estimation of sampling errors. These conditions give rise to exclusion bias,
placing limits on how much information a sample can provide about the
52
53. population. Information about the relationship between sample and population is limited,
making it difficult to extrapolate from the sample to the population.
4. Determining the sample size & implementation
We have used sample size of 150 people who are the holder of bikes. By using this we are
able to define that which company is very strong from the other one.
5. Sampling and data collecting:-
For collecting data we have used 150 questionnaire so that we can just conduct
explorative research process.
We have also utilized the secondary method of data collection , we have collected data
from internet sources to analyze whose market share is large in the market of two
wheelers
53
Data collection:
For conducting this comparative research we have used primary data collection method by
issuing questionnaire.
After issuing questionnaire we have used door 2 door interviewing method. Because any other
method like telephonic or email or mail interviewing is totally wasteful for this research.
For collecting data we have used 100 questionnaire so that we can just conduct explorative
research process.
We have also utilized the secondary method of data collection , we have collected data from
internet sources to analyze whose market share is large in the market of two wheelers .
Method of data collection – primary data collection &
secondary method
Tools -- questionnaire
No. of questionnaire -- 150
Interview method – personal interview
Area -- ahmedabad
54. 54
Data analysis:-
After collecting data by primary and secondary method. We have analyzed the data as below.
We have collected the data from 150 people who are the holders of bikes so that we can get idea
about the perception of bike holder for bajaj and tvs.
We will analyzed the data as per the questionnaire
HYPOTHESIS :-
H0 =Bajaj is more famous among the customers than the tvs
H1 =T.V.S is more famous among the customers than the Bajaj
For identifying and solving this problem we have utilized the data to know what is the consumers
preference and priority among two company
We have utilized the data . by identify and analised the data we can easily say that who’s
company is more famous among the consumers
55. 1. Are you satisfied with customer care service of your existing company?
By analyzing the all the questionnaire we have got the result that out of 80 people there
are 27 people who are dissatisfied and only 53 people who are satisfied from there
existing bike.
55
66%
34%
customer care service
satisfied not satisfied
56. 2. If you prefers bikes of bajaj / tvs , than why you prefer?
There are 60 people who prefares bikes of either bajaj or tvs
BAJAJ—43 TVS--17
56
A. Average [26 ]
B. Price [ 8 ]
C. Maintance [0 ]
D. Advertisement [4 ]
E. Look [ 3 ]
F. Influence [2 ]
G. Average [ 8 ]
H. Price [ 2 ]
I. Maintance [2 ]
J. Advertisement [ 0 ]
K. Look [ 2 ]
L. Influence [3 ]
30
25
20
15
10
5
0
average price maintance advertisment look influnce
BAJAJ
TVS
57. 3. After using this bike, what do you think whose average is better?
We have asked this question to those who are using any bike . and the average is in compared to
other bikes so that we can get idea that whose image is better in the mind of consumer
average of bikes
TVS BAJAJ
1%
57
T.V.S -17
BAJAJ -43
4. What do you think which company provides good product in less cost?
We have asked this question to all bikes holder so that we can get idea about the
consumers preference for tvs and bajaj.
Than most of the people prefers that bajaj is good company who provides good product in
less cost / price.
BAJAJ-- 46
T.V.S-- 24
99%
58. Good product in less cost
5. What do you think which company is provides good product than other
58
one?
We have asked this question to all bikes holder so that we can get idea about the
consumers preference for tvs and bajaj.
Than most of the people prefers that bajaj is good company who provides good product in
as compared to the tvs motors
BAJAJ=47
TVS= 23
66%
34%
BAJAJ TVS
59. good product than other one
6. What do you think the whose advertisement style is better than other?
We have asked this question to all bikes holder so that we can get idea about the
consumers preference for tvs and bajaj. This questin helped us to know that whose
advertisement style is better in consumers mind
advertisement style
59
BAJAJ=39
TVS= 31
BAJAJ
67%
TVS
33%
BAJAJ
56%
TVS
44%
60. 7. What do you think whose brand image is best in comparison of other?
We have asked this question to all bikes holder so that we can get idea about the
consumers preference for tvs and bajaj. This questin helped us to know that whose brand
image style is better in consumers mind
60
BAJAJ=41
TVS= 29
8. What do you think , which company’s product require less maintances cost
than other one?
we have asked those people who used or using the product / two wheeler of bajaj or tvs. So
that we can get final result about the maintenance level for each types of company. The data
comes as below. Means only of 60 people who uses this bikes/
BAJAJ=17
TVS= 33
59%
41%
brand image
BAJAJ
TVS
61. maintances cost
BAJAJ TVS
61
Conclusion:-
34%
66%
By analysis this data we can easily say that the bajaj is more famous than the tvs. When we
analyzed the different question we can conclude that only one factor is not satisfied by the
consumer in bajaj bikes that is maintenance. So H0 may be accepted by researching the data
62. 62
Findings of the research :-
By the analyzing the data we have found that both the company is very strong.
Both company is competing each other.
By the research we have found that the bajaj is very though competitor than tvs.
Bajaj is the market leading company than tvs .
Bajaj automobile is the high and good financial position than the tvs
Bajaj has a large produc range than the tvs
Though tvs is not that much famous than the bajaj but they have good impact on
consumers mind by launching there first self – start bikes. Due to this product they got
succeed in creating good image and good brand image
By analyzing the different factor we have got the information that in most of the factor
the bajaj is leading than the tvs
By conducting survey we can able to say that most of the people prefer the bikes of bajaj.
People who don’t like the bikes of bajaj, the main reason behind is that the resale value of
bikes is too low than the other bikes and the maintains cost is very high than the other
bikes companies
Day by day the people ‘s perception regarding to the tvs motors is changing , due to the
sudden launching of different product with new feature and new technology.
The frequency of launching product in tvs is too much low than the bajaj.
63. Suggestion
1. In most of the factors like average , price and looks the bajaj is leading .but when we talk
about the maintenance than bajaj is very high maintenance cost .
2. So bajaj company has to decrease there maintenance cost so that other consumer who
dislike this bike due to maintenance cost they can also purchase this bike.
3. The resale value of bajaj bike is also too much low than other bikes. So they have to
increase there quality so that the brand image increase and the consumer perception also
change.
1. As compared to bajaj the tvs bikes are not famous ,so they have to increase
63
advertisement
2. They are leading in maintenance cost but it is not all that lead to consumer to purchase
bike of tvs
3. They have to increase brand image and quality, so that other people also purchase there
bike who doesn’t like due to their brand image and quality product.
4. In all other factor tvs company is less popular than bajaj so they have to improve there
overall product .
64. Conclusion:-
By analysis this data we can easily say that the bajaj is more famous than the tvs. When we
analyzed the different question we can conclude that only one factor is not satisfied by the
consumer in bajaj bikes that is maintenance. So H0 may be accepted by researching the data
so the null hypothesis should be accepted and alternative hypothesis may be rejected.
64
73. Particulars Mar'09 Mar'10 Mar'11
73
Liabilities
12
Months 12 Months
12
Months
Share Capital 100 100 200
Reserves & Surplus 100.00 161.37 267.87
Net Worth 100.00 156.62 262.62
Secured Loans 100 129.8 2353
Unsecured Loans 100 84.43 19.21
TOTAL LIABILITIES 100.00 124.05 152.20
Assets
Gross Block 100.00 100.87 101.34
(-) Acc.
Depreciation 100.00 105.07 105.78
Net Block 100.00 95.33 96.14
Capital Work in
Progress. 100 113.49 140.25
Investments. 100.00 222.37 265.14
Invent ories 100.00 131.69 161.52
Sundry Debtors 100.00 76.07 101.15
Cash And Bank 100.00 74.09 406.58
Loans And
Advances 100.00 146.21 248.34
Total Current Assets 100.00 129.58 223.12
Current Liabilities 100.00 160.94 190.42
Provisions 100.00 183.70 320.69
Total Current Liabi lities 100.00 171.64 251.70
NET CURRENT ASSETS 100.00 674.48 593.27
Misc. Expenses 100.00 0.00 0.00
TOTAL ASSETS
(A+B+C+D+E) 100.00 124.05 152.20
74. 74
INTERPRETATION :-
By analyzing the trend flow statement of bajaj automobile we are able to interpret the following
things
The share capital was inc. by 100% in ’11 but remain stable in ‘10
Initially the reserve and surplus was increased by 61 % in ’10 while it increase 167.87% of
base year ‘09
Net worth inc. by 56 in’10 while by 162 in 2011.
Total liabilities inc. by 24.51 in 2010 while 52.20 in 2011 in compare to base year .
Net block reduce up to 95.33 and 96.14 in compare to base year.
Capital in work in progress was initially increased by 13.49 in 2010 while in 2011 it increase by
40.25 % as per the comparison of base year 2009.
Sundry debtors was reduce up to 76 in 2010 in compare to 2009 , while it increase by 1.00%
in2011 in compare to 2009.
Cash and bank was initially reduced up to 74% but in increase by 306% in 2010 and 2011
respectively
Loans and advances was increased by 46.21 and than increase by 148.34 as compared to the
base year 2009 in 2010 and 2011 respectively
75. Particulars Mar'09 Mar'10 Mar'11
Liabilities 12 Months 12 Months 12 Months
Share Capital 100 100 200.04
Reserves & Surplus 100 106.62 112.06
Net Worth 100 106.25 122.91
Secured Loans 100 133.35 90.92
Unsecured Loans 100 61.12 77.41
TOTAL LIABILITIES 100 108.7 103.82
Assets
Gross Block 100 102.35 105.73
(-) Acc. Depreciation 100 109.67 119.01
Net Block 100 95.96 94.14
Capital Work in
Progress. 100 66.91 141.95
Investments. 100 154.75 138.4
Inventories 100 90.39 164.69
Sundry Debtors 100 121.34 149.05
Cash And Bank 100 240.21 14.29
Loans And
Advances 100 96.22 108.66
Total Current Assets 100 105.23 130.62
Current Liabilities 100 108.06 135.03
Provisions 100 102.11 140.45
Total Current Liabi lities 100 107.6 135.45
NET CURRENT ASSETS 100 89.85 99.24
Misc. Expenses 100 39.44 0
TOTAL ASSETS
(A+B+C+D+E) 100 108.7 103.82
75
76. 76
INTERPRETATION :-
By analyzing the trend flow statement of T.V.S we are able to interpret the following things
The share capital was inc. by 100% in ’11 but remain stable in ‘10
Initially the reserve and surplus was increased by 06.62 % in ’10 while it increase 12.06% of
base year ‘09
Net worth inc. by 06.25 in’10 while by 22.91 in 2011.
Total liabilities inc. by 8.7 in 2010 while 3.82 in 2011 in compare to base year .
Net block reduce up to 4.04 and 5.78 in compare to base year.
Capital in work in progress was initially increased by 66.91 in 2010 while in 2011 it increase by
141.95% as per the comparison of base year 2009.
Sundry debtors was increase 21.34 in 2010 in compare to 2009 , while it increase by 43.09 %
in2011 in compare to 2009.
Cash and bank was initially increased by 140.21 % but in decreased up to 14.29 % in 2010 and
2011 respectively
Loans and advances was decreased up to 96.22 and than increase by 08.66 as compared to
the base year 2009 in 2010 and 2011 respectively
78. 78
1. Liquid Ratio =
2. Gross profit ratio =
3. Net Profit ratio =
4. Operating ratio =
5. Operating exp. = Mfg. exp. + administrative exp. + S & D exp.
Administrative expenses =
6. Capital employed =share capital+ reserves& surplus+ long terms loans
– fictitious assets
Holders fund =Equity share capital+ pref.share capital+ reserve.
ROSF =
7. Return on equity
shareholder’s fund = x100
Equity share holder fund = Equity share capital + R & S
8. Return on Total Assets =
9. Earning per share =
10. Debt equity Ratio =
Share holders fund = Equity share capital + pref. share capital + R & S
Proprietary Ratio =
11. Proprietary fund = Share holders fund
79. 79
12. ong term fixed assets =
13. Stock turnover =
Average stock =
14. Debtors ratio =
15. Fixed assets turn over =
16. Current assets turnover =
17. Total assets turn over ratio =
80. 80
1 current ratio
2011
0.41
2010
0.37
2009
0.60
2 liquid ratio 0.20 0.17 0.36
3 G.P ratio 71.40 74.08 68.23
4 N.P ratio 20.30 14.41 7.55
5 oper. Ratio 80.21 79.58 87.28
6 COGS ratio 28.60 26.83 31.65
7 ROCE 82.30 56.39 27.91
8 ROSHF 68.02 58.15 35.11
9 ROESHF 68.02 58.15 35.11
10 ROESC 1154.14 1176.89 453.75
11 ROTAsst 63.79 39.91 19.09
12 Earning per sh. 115.41 117.69 45.37
13 Debt Eq. ratio 0.16 0.34 0.48
14 prop. Ratio 93.79 68.63 54.36
15 stock turnover 9.47 8.08 8.00
16 debtors ratio 7.94 8.31 14.84
17 FA t/o ratio 11.10 7.98 5.64
18 CA t/o ratio 15.44 14.42 10.44
19 TA t/o ratio 3.14 2.77 2.53
20 profit margin ratio 20.30 14.41 7.55
21 avg.debt coll.period 5.86 9.62 13.12
81. 81
INTERPRETATION:-
ASSETS RATIOS
Current assets was initially lower in 2009 but it increase in compare to the 2010. They have to
increase there current assests because it ‘s too much low as compare to idol ratio 2:1
Liquid ratio is highest in 200. But .20 in 2011. They have to increase there cash and bank.
There current assets is too much low.
Return on total assets is increasing rapidly as compare to the base year 2009. Which is
acceptable.
Total assets turnover ratio is also increasing from last years. Which shows the good financial
position of company.
Current ratio turn over is also increasing from Succeeding year 2009
Earning ratio
Earning per share was initially too much low as 45.37 rs but in 2011 it increased up to 115.41
rs
Profit margin ration also increasing initially it was only 7.55% but later in increase up to
20.30%
Returns ratio
Return on capital employed is increased up to 82.30 from 27.91 in 2011 as compared to 2009
Return on share holder fund is increasing rapidly initially 35.11 and at 2011 68.02. which
shows goodwill of company
Return on equity share holder fund shows very high in 2011 viz. 1154.14 as compared to
45.73.
82. 2011
2010
2009
1 current ratio
0.77 0.66 0.70
2 liquid ratio 0.26 0.31 0.29
3 G.P ratio 26.07 26.64 22.68
4 N.P ratio 3.15 2.02 0.85
5 oper. Ratio 95.07 95.20 96.70
6 COGS ratio 73.93 73.36 77.32
7 ROCE 17.84 8.11 5.57
8 ROSHF 19.47 10.17 3.82
9 ROESHF 19.47 10.1701 3.82
10 ROESC 409.56 370.57 130.86
11 ROTAsst 10.90 4.71 1.81
12 Earning per sh. 4.10 3.71 1.31
13 Debt Eq. ratio 1.83 2.19 2.14
14 prop. Ratio 55.99 46.31 47.30
15 stock turnover 11.17 10.49 7.82
16 debtors ratio 15.77 18.22 17.81
17 FA t/o ratio 6.59 4.57 3.69
18 CA t/o ratio 7.68 7.94 6.75
19 TA t/o ratio 3.46 2.33 2.14
20 profit margin ratio 3.15 2.02 0.85
21 avg.debt coll.period 14.31 16.60 13.21
82
83. 83
INTERPRETATION:-
ASSETS RATIOS
Current assets was initially lower in 2009 but it increase in compare to the 2010. They have to
increase there current assests because it ‘s too much low as compare to idol ratio 2:1
Liquid ratio is highest in 2010. But .26 in 2011. They have to increase there cash and bank.
There current assets is too much low.
Return on total assets is increasing rapidly as compare to the base year 2009. Which is
acceptable.
Total assets turnover ratio is also increasing from last years. Which shows the good financial
position of company.
Current ratio turn over is also increasing from Succeeding year 2010
Earning ratio
Earning per share was initially too much low as 1.31 rs but in 2011 it increased up to 4.10 rs
Profit margin ration also increasing initially it was only .85% but later in increase up to 3.15 %
Returns ratio
Return on capital employed is increased up to 17.84 from 5.57 in 2011 as compared to 2009
Return on share holder fund is increasing rapidly initially 3.8 and at 2011 19.47. which shows
goodwill of company
Return on equity share holder fund shows very high in 2011 viz. 409.59 as compared to
130.86.
85. I. OPERATING ACTIVITIES
A) Profit before tax 4,350.75 2,411.13
B) Adjustments:
Add:
i) Depreciation 122.84 136.45
ii) Provision for diminution in value of investment 102.27 —
iii) VRS compensation charged off — 183.30
iv) Valuation gains of derivative hedging instruments — (21.80)
v) Amount written off against Technical Know-how 2.14 16.26
vi) Amount written off against leasehold land 0.65 0.66
vii) Loss on Assets sold, demolished, discarded and scrapped 20.12 3.42
viii) Provision/(write back) for Diminution in Value of Investments — (2.50)
ix) Provision for Doubtful Debts and Advances 0.34 1.19
x) Of premium/discount on acquisition of fixed income securities 15.91 (16.14)
xi) Interest paid included in above
Interest on cash credit/fixed term loan 1.38 2.16
Interest paid - others 0.31 3.82
85
265.96 306.82
4,616.71 2,717.95
Less:
i) Investment and Other Non-operating Income included in above:
Interest on Government Securities 26.28 18.26
Interest on Debentures and Bonds 294.60 40.90
Interest on Fixed deposits & others 6.16 0.30
Profit/(Loss) on Sale of Investments, net 52.82 42.94
Surplus/(Loss) on Redemption of Securities 1.39 0.41
Dividend on shares 0.47 0.25
Amortisation on acquisition of fixed income securities (15.91) 16.14
Provision for Diminution in value of Investments, net — 2.50
Provision for Doubtful debts & advances, net — 0.80
365.81 122.50
ii) Provision for Doubtful debts & advances written back 2.22 1.57
iii) Surplus on Sale of Assets 9.37 5.73
iv) Surplus on pre-payment of sales tax deferral liability/loan 826.82 —
v) Prior Period Expenses — 0.90
(1,204.22) (130.70)
3,412.49 2,587.25
C) (Increase)/Decrease in Current Assets
i) Inventories (101.07) (107.37)
ii) Sundry Debtors (121.43) 118.78
iii) Other Current Assets and Loans and Advances (636.51) (20.08)
(859.01) (8.67)
Increase/(Decrease) in Current Liabilities
i) Liabilities 456.07 876.58
(402.94) 867.91
3,009.55 3,455.16
D) Annuity payments (net) to VRS optees (18.58) (18.16)
NET CASH FROM OPERATING ACTIVITIES BEFORE INCOME TAX 2,990.97 3,437.00
Income Tax, Wealth Tax paid (977.25) (699.89)
NET CASH FROM OPERATING ACTIVITIES 2,013.72 2,737.11
II. INVESTMENT ACTIVITIES
i) (Increase)/Decrease in Inv. in subsidiaries
, joint ventures and associates,etc. (210.08) (82.74)
ii) (Increase)/Decrease in other investments, net (681.78) ((2,111.62)
86. iii) (Increase)/Decrease in fixed deposits (400.00) —
iv) Capital Expenditure (200.63) (116.67)
v) Sales Proceeds of Assets/Adjustment to Gross block 39.21 8.85
vi) Technical Know-how (6.42) —
vii) (Increase)/Decrease in Deposits with Joint Stock
Companies, Loan to Bajaj Finance Ltd — 14.60
86
(1,459.70) (2,287.58)
viii) Investment and other Non-operating Income:
Interest on Government Securities 26.28 18.26
Interest on Debenture and Bonds 294.60 40.90
Interest on fixed deposits & others 6.16 0.30
Profit/(Loss) on Sale of Investments, net 52.82 42.94
Surplus/(Loss) on Redemption of Securities 1.39 0.41
Dividend on shares 0.47 0.25
Provision for Diminution in value of Investments, net — 2.50
Amortisation of premium/discount on acq. of fixed income securities (15.91) 16.14
Provision for Doubtful debts & advances, net — 0.80
365.81 122.50
(Increase)/decrease in non-operating income receivable & dues (2.75) 1.46
363.06 123.96
NET CASH FROM INVESTMENT ACTIVITIES (1,096.64) (2,163.62)
917.08 573.49
III. FINANCING ACTIVITIES
i) Short term bank Loan taken/(repaid) 134.31 (248.50)
ii) Cash Credit from Banks 10.55 12.98
iii) Interest on cash credit/fixed term loan (1.38) (2.16)
iv) Interest paid - others (0.31) (3.82)
v) Repayment of Fixed Deposits (0.01) (0.01)
vi) Deferral/(Repayment) of Sales tax deferral liability/loan 36.68 4.11
vii) Pre-payment of sales tax deferral liability/loan (368.14) —
viii) Dividend Paid (577.58) (317.45)
ix) Corporate Dividend Tax Paid (96.12) (54.10)
NET CASH FROM FINANCING ACTIVITIES (862.00) (608.95)
NET CHANGE IN CASH & CASH EQUIVALENTS 55.08 (35.46)
Cash and Cash Equivalents as at 01.04.2010 101.41 136.87
[Opening Balance]
Cash and Cash Equivalents as at 31.03.2011 156.49 101.41
[Closing Balance]
Reconciliation of Cash and Cash Equivalents as at 31.03.2011
Closing Balance as per Balance Sheet 556.49 101.41
Less: Fixed deposits (shown separately) 400.00 —
Cash and Cash Equivalents as at 31.03.2011 156.49 101.41
87. 87
Interpretation of cash flow statement
Cash flow Mar ' 11 Mar ' 10
Profit before tax 4,350.75 2,411.13
Net cashflow-operating activity 2,013.72 2,737.11
Net cash used in investing activity -1,096.64 -2,163.62
Netcash used in fin. activity -862 -608.95
Net inc/dec in cash and equivlnt 55.08 -35.46
Cash and equivalnt begin of year 101.41 136.87
Cash and equivalnt end of year 156.49 101.41
The P.B.T is increased from 2411.13 to 4350.75 which shows strong financial position
The operating activity cash flow has been decline as compare to last year
Company is not generated any cash flow from investing activity, in any year and making a
loss. Though in 2011 they are making loss but the loss is half than the last year
Company has paid his debts and dividend and not issued any other financial tools, so this year
generated a huge loss,
Though there is a huge increment in cash and cash Equivalents.
88. Cash Flow Statement Rupees in crores
88
Year ended Year ended
31-03-2011 31-03-2010
A. Cash flow from operating activities
Net profit before tax and extra-ordinary items 248.09 76.17
Add: Depreciation for the year 107.25 102.53
Depreciation on sale / scrapping of assets (26.00) (18.54)
Amortisation of Foreign Currency Monetary Item
Translation Difference Account 0.01 (0.08)
Loss on sale of fixed assets 14.15 0.31
Profit on sale of fixed assets (0.25) (54.32)
Profit on sale of investments (11.60) (4.70)
Loss on sale of investments 3.34 91.50
Diminution in the value of investments 3.36 -
Miscellaneous expenditure written off 0.36 1.95
Dividend income (2.75) (0.14)
Interest income (23.31) (12.19)
Interest expenditure 70.30 75.36
134.86 181.68
Operating profit before working capital changes 382.95 257.85
Adjustments for:
Trade receivables (49.83) (38.75)
Inventories (238.19) 30.82
Other current assets 0.54 0.25
Loans and advances (35.67) (22.11)
Trade payables 217.98 116.87
Provisions 5.75 21.64
(99.42) 108.72
Cash generated from operations 283.53 366.57
Direct taxes paid (81.13) (27.66)
Net cash from operating activities (A) 202.40 338.91
B. Cash flow from investing activities
Purchase of fixed assets (114.40) (89.70)
Sale of fixed assets 37.73 83.80
Capital work-in-progress (30.34) 13.38
Purchase of investments (867.34) (1,015.78)
Sale of investments 950.36 667.43
Miscellaneous expenditure not written off 29.73 43.29
Interest received 23.31 12.19
Dividend received 2.75 0.14
31.80 (285.25)
Net cash from / (used in) investment activities (B) 31.80 (285.25)
C. Cash flow from financing activities
Long term borrowings:
Secured loans repaid (396.06) 302.54
Unsecured loan availed 0.35 (138.18)
Sales tax deferral loan availed (Tamil Nadu) 67.23 10.00
Sales tax deferral loan availed (Karnataka) 31.61 27.92
Interest paid (70.30) (75.36)
Dividend and dividend tax paid (41.12) (38.92)
(408.29) 88.00
Net cash (used in) / from financing activities (C) (408.29 ) 88.00
D. Net increase in cash and cash equivalents (A) + (B) + (C) (174.09) 141.66
Cash and cash equivalents at the beginning of the year
Cash & bank 101.01 42.05
CCaasshh acrnedd cita -s bha elaqnucivealents at the end of the year – 101.01 (82.70) (40.65)
89. Cash & bank 6.01 101.01
Cash credit - balance (79.09) (73.08) – 101.01
89
Interpretation of cash flow statement
Cash flow
2011
2010
Profit Before Tax
248.09
76.17
Net Cash From Operating Activities 202.4 338.91
Net Cash (used in)/from
Investing Activities 31.8 -285.25
Net Cash (used in)/from Financing Activities -408.29 88
Net (decrease)/increase In Cash and Cash Equivalents -174.09 141.66
Opening Cash & Cash Equivalents 101.01 -40.65
Closing Cash & Cash Equivalents -73.08 101.01
The P.B.T is increased from 76.17 to 248.09. which shows strong financial position
The operating activity cash flow has been decline as compare to last year
Company is generated good cash flow from investing activity, while earlier was making loss
Company has paid his debts and dividend , so this year generated a huge loss,
But there is a huge decreased in cash and cash Equivalents.
90. GOVERNMENT B.B.A COLLEGE
K KA Shastri education maningar (east),
ANNEXURE
Note :- 1. All the information provided by you will only be used only for research purpose.
90
2. All the information will be kept secretly.
General information
1. Name :- _____________________________________________________________
2.Adderess :- ___________________________________________________________
___________________________________________________________
3.Contact no.:- ________________________
4.Age :- _____
5. Sex :- male [ ]
Female [ ]
6.Occupation:-
A. BUISNESS [ ]
B. D. PROFESSIONAL [ ]
C. SERVICE [ ]
D. RETIRED [ ]
E. STUDENT [ ]
F. HOUSEWIFE [ ]
7. Monthly income 5000-10000 [ ]
10000-15000 [ ]
15000-20000 [ ]
20000 and more [ ]
91. INDIVIDUAL INFORMATION
91
8. Do you prefare two whilers ?
9. A . yes [ ]
B . NO [ ]
10. Which product / type of two whiler you use ?
A. Bikes [ ]
B. Scooters [ ]
C. Scooty [ ]
D. Moped [ ]
E. Other…………………………….
11. If you prefer bikes which company you prefer for bikes
A. Bajaj [ ]
B. Tvs [ ]
C. Honda [ ]
D. Hero [ ]
E. Suzuki [ ]
F. Any other……………………………………
12. Are you satisfied with customer care service of your existing company?
Yes [ ]
No [ ]
13. If you prefers bikes of bajaj / tvs , than why you prefer?
M. Average [ ]
N. Price [ ]
O. Maintance [ ]
P. Advertisement [ ]
92. 92
Q. Look [ ]
R. Influence [ ]
14. After using this bike, what do you think whose average is better
Bajaj [ ]
Tvs [ ]
15. What do you think which company provides good product in less cost?
Bajaj [ ]
Tvs [ ]
16. What do you think which company is provides good product than other one?
Bajaj[ ]
Tvs [ ]
17. What do you think the whose advertisement style is better than other?
Bajaj [ ]
Tvs [ ]
18. What do you think whose brand image is best in comparison of other?
Bajaj [ ]
Tvs [ ]
19. What do you think , which company’s product require less maintances cost than other one?
Bajaj
Tvs
20. Are you satisfied with your current t.v.s. / bajaj bike.?
Yes [ ]
No [ ]
21. If no than
why?......................................................................................................................... .............................
..............................................................................................................................................................
.....................................
22. Are you thinking to swithching on TVS / BAJAJ bike?
Yes [ ]No [ ]
93. 93
23. If yes than
why?......................................................................................................................... .............................
..............................................................................................................................................................
.....................
24. What do you think what TVS / BAJAJ should do beat other one?
A. Looks change. [ ]
B. Price reduction [ ]
C. Maintance cost [ ]
D. Advertisement [ ]
E. Average [ ]
F. Any other ,………………………………………………………………………………………………………………………………
25. What suggestion would you like to give to bajaj to improve there brand image and sells?
..............................................................................................................................................................
..............................................................................................................................................................
...............................................................
26. What suggestion would you like to give to tvs to improve there brand image and sells?
..............................................................................................................................................................
..............................................................................................................................................................
...............................................................
27. Any suggestion to both companies?.
…………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
……………………………………………………….
