A project report on financial

analysis of BAJAJ AUTO LTD.

Submitted By: Group No: 1

Girish Nair
Madhu Singh
Mala Thakker
Nirmal Gajjar
Reshma Manohar

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 Acknowledgement
As any other report the success of this report is the result of active involvement of many people:
From time of inception of an idea till the end. Many brains has worked together to make this
exclusive and informative Analysis of Balance sheet of Bajaj Auto Ltd.

With a great pleasure and privilege we are presenting this report with our deepest gratitude to our
institute for providing us this immense.

We would like to acknowledge our sincere thanks, to Dr. Himani Joshi (Academic Coordinator)
for her guidance throughout the project, her interest, enthusiasm and Involvement had been
greatest motivational factor during the study.

It is a privilege to have weighty appreciation to Mrs. Neha Saxena for giving us complete
support and cooperation, and for helping us with the knowledge regarding the planning of the
business and execution of the same.

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 Table of content
s. no Particulars Page no.

1. Introduction 4

2. Time series Analysis 7

3. Profit & Loss Analysis 20

4. Cash Flow Analysis 23

5. Cash Flow Ratio Analysis 26

6. Comparative Analysis 31

7. Facts About the Company 31

8. Annexure 37

9. References 40

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 INTRODUCTION

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The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a
wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home
appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company,
Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the
Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South
and South East Asia

Bajaj Auto is a major Indian automobile manufacturer. It is India's second largest two wheeler
manufacturer and the world's 4th largest two- and three-wheeler maker. It is based in Pune,
Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (near Aurangabad) and Pantnagar
in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles and the auto rickshaw.

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 strength of the company is its quality products, excellence in engineering and design, and its
ability to delight the customers. The Pulsar, introduced in November 2004, is continually
dominating the premium segment of the motorcycle market, helping to maintain the market
superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment
of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc
motorcycle

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 Images of Bajaj Bikes:

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 TIME SERIES ANALYSIS

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PROFITABILITY RATIOS

1.) Why Gross Profit Margin is measured?

Ans: Gross profit margin gives a good indication of financial health. Without an adequate gross
margin, a company will be unable to pay its operating and other expenses and build for the
future.

Gross Profit Margin = Gross Profit*100/Net Sales

Gross Profit Margin (%) 14.37 13.2 12.87 11.11

Gross Profit Margin(%)

Gross Profit Margin(%)

14.37 13.2 12.87

11.11

Mar '06 Mar '07 Mar '08 Mar '09

2.) Why Gross profit margin is declining?

Ans: Fall in sales in domestic market.

a.) The Indian automotive sector has been hit by the fall in demand growth. The third
quarter of 2008-09 was particularly fierce. Average monthly sales of motorcycles in India

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 fell by over 17% in Q3 2008-09 versus Q2 — from an average of 524,939 units per
month to 435,114. The company has been affected by this downturn.

b.) Then came the hit in the third quarter, coinciding with the global financial meltdown and
very sharp cutbacks in the availability of consumer and retail credit.

3.) Why net profit margin is measured?

Ans: Net profit ratio = net profit*100/net sales

The ratio shows the earnings left for share holders as a percentage of net sales. It measures the
overall efficiency of production, administration, selling, financing. Pricing & tax management of
the firm.

Net Profit Margin (%) 13.86 12.66 8.32 7.4

Net Profit Margin(%)

Net Profit Margin(%)

13.86
12.66

7.95
7.075

Mar '06 Mar '07 Mar '08 Mar '09

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4.) Why there is decline in net profit margin?

Ans: Net profit ratio decreases 7.95 to 7.07

Reason: Operating profit before tax (PBT) fell by 16.4% to Rs.8.46 billion. This was largely due
to a voluntary retirement scheme (VRS) of Rs.1.83 billion and mark-to-market losses of Rs.218
million. Even so, the operating profit margin was 9.6% of net sales and other operating income.

But decline in domestic sales have been offset by increase in international sales. The company
continues to be the country’s largest exporter of two- and three-wheelers. During 2008-09, Bajaj
Auto’ international sales achieved an all-time high of 772,519 units of two- and three-wheelers
— representing a growth 25% over the previous year. The growth was driven by the export of
two wheelers, which increased by 31% over 2007-08 to achieve sales of 633,463 units in 2008-
09. The total value of exports was Rs.26.4 billion, representing a growth of 29%.

5.) What is return on net worth means?

Ans: Return on net worth = PAT/ net worth.

A measure of a corporation's profitability; ROE reveals how much profit a company generates
with the money shareholders have invested.

Return On Net Worth (%) 23.09 22.36 47.61 37.86

Return On Net Worth(%)

Return On Net Worth(%)

47.61
37.86
23.09 22.36

Mar '06 Mar '07 Mar '08 Mar '09

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 6.) Why the return on net worth declining?

Ans: the net profit of the Bajaj auto ltd has decline.

7.) What is return on capital employed?

Ans: Return on capital employed = PBIT/capital employed

A ratio that indicates the efficiency and profitability of a company's capital investments.

Return On Capital Employed (%) 23.32 20.9 39.71 31.66

Return On Capital Employed(%)

Return On Capital Employed(%)

39.71
31.66
23.32 20.9

Mar '06 Mar '07 Mar '08 Mar '09

8.) Why it is declining?

Ans: profit before interest is declining & capital employed has increased (debt has increased in
2008-09).

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9.) Why ROA is calculated?

Ans: Return on asset = PAT/total asset

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to
how efficient management is at using its assets to generate earnings. This is an important ratio
for companies deciding whether or not to initiate a new project

Return on Assets 11.05 10.6 15.3 11.91

Return on Assets
Return on Assets

15.3

11.05 11.91
10.6

Mar '06 Mar '07 Mar '08 Mar '09

10.) Why ROA is declining?

Ans: it is declining due to the decrease in net profit in 2008-09.

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LIQUIDITY AND SOLVENCY RATIOS

11.) Why current ratio is measured?

Ans: Current ratio = Current asset/Current liabilities

The ratio is mainly used to give an idea of the company's ability to pay back its short-term
liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher
the current ratio, the more capable the company is of paying its obligations

Current ratio 0.799148 0.9026664

Current ratio (incl. mktbl. securites) 1.4976919 1.340349

The current ratio has increased from .79 in 2007-08 to .90 in 2008-09.

12.) Is the new current ratio good for the company?

Ans: Reason: Many companies have been forced to delay payments to vendors; Bajaj Auto has
gone the other way — helped its suppliers and dealers by offering improved payment terms by
significantly reducing payment cycle. This has reduced the current liabilities for the company &
the rise in export debtors, shows up in an increase in operating working capital as at 31, March
2009. In this way company is able to maintain healthy current ratio.

13.) Why quick ratio is taken into consideration?

Ans: Quick Ratio = Quick Asset/Current Liabilities

An indicator of a company's short-term liquidity. The quick ratio measures a company's ability to
meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better
the position of the company

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 Quick Ratio 0.69 0.76 0.3635725 0.4339967

Quick Ratio
Quick Ratio

0.76
0.69

0.4339967
0.3635725

1 2 3 4

Quick Ratio is increasing from .36 to .433

14.) Why quick ratio is declining?

Reason: Quick ratio is lesser than current ratio because the major share in current asset
comprise of inventory & prepaid expenses which have been deducted while calculating
quick ratio. That’s why it is less than current ratio.

15,) Why debt equity ratio is measured?

Ans: Debt Equity Ratio = Debt / Equity

A measure of a company's financial leverage.
Investing in a company with a higher debt/equity ratio may be riskier, especially in
times of rising interest rates, due to the additional interest that has to be paid out for
the debt

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 Debt Equity Ratio 0.31 0.29 0.84 0.93

Debt Equity Ratio

Debt Equity Ratio

0.93
0.84

0.31 0.29

1 2 3 4

1.) Why is the debt equity ratio increasing?

Ans: Reason: the unsecured loan & bank borrowings has lead to an increase in total
borrowing which led to increase in debt equity ratio from 2007-08 to 2008-09.

Total borrowings 1346.33 1603.03

2.) Why company is increasing its debt?

Ans: The Company is increasing the proportion of debt for its huge R&D expenditure.
In 2008-09, the R&D department has prepared for major upgrades across the company’s
product range. It has also enhanced its infrastructure for design, prototyping and testing.
Two of the important products launched during 2008-09 are:
Platina 125 cc DTS-si
XCD 135 cc DTS-si

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3.) Why interest coverage ratio is measured?
Ans: Interest Coverage Ratio = PBDITA /Interest.

Interest coverage ratio is a measure of a company's ability to honor its debt payments.

Interest Cover 4,280.03 280.28 209.03 45.51

Interest Coverage
Interest Coverage

4,280.03

280.28 209.03 45.51

1 2 3 4

Interest Coverage ratio is being reduced from 209.03 to 45.51.

16.) Why the interest coverage ratio is decling?

Ans: Reason:
1.) As PBDITA is decreasing.

PBDITA 1269.81 1035.85

2.) Interest payments has been increased from 5.16 to 21.89.

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TURNOVER RATIOS

17.) What is stock turnover ratio? What is the implication of this ratio?

Stock Turnover Ratio: Stock turnover ratio is a ratio between cost of goods sold and average
stock. This ratio is also known as stock velocity or inventory turnover ratio.

Stock Turnover Ratio = Cost of Goods Sold/Average Stock

Inventory Turnover Ratio 34.14 36.88 29.33 28.64

Inventory Turnover Ratio

Inventory Turnover Ratio

36.88
34.14
29.33 28.64

Mar '06 Mar '07 Mar '08 Mar '09

This ratio provides guidelines to the management while framing stock policy. It measures how
fast the stock is moving through the firm and generating sales. It helps to maintain a proper
amount of stock to fulfill the requirements of the concern. A proper inventory turnover makes the
business to earn a reasonable margin of profit.

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 18.) What is debtor turnover ratio? What is the implication of this ratio?

a. Debtor’s turnover Ratio: Debtors turnover ratio indicates the relation between net credit
sales and average accounts receivables of the year.

Debtors Turnover Ratio = Net Credit Sales/Average Accounts Receivables

Debtors Turnover Ratio 22.66 21.93 29.86

Debtors Turnover Ratio -- 22.66

Debtors Turnover Ratio -- 22.66

29.86

22.66 21.93

Mar '07 Mar '08 Mar '09

Objective and Significance: This ratio indicates the efficiency of the concern to collect the
amount due from debtors. It determines the efficiency with which the trade debtors are managed.
Higher the ratio, better it is as it proves that the debts are being collected very quickly.

b. Debt Collection Period: Debt collection period is the period over which the debtors are
collected on an average basis. It indicates the rapidity or slowness with which the money
is collected from debtors.

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 c. Debt Collection Period = 12 Months or 360 Days/Debtors Turnover Ratio

This ratio indicates how quickly and efficiently the debts are collected. The shorter the period the
better it is and longer the period more the chances of bad debts.

19.) What is fixed asset turnover? What is the implication if this ratio?

Fixed Assets Turnover Ratio = Net Sales/Net Fixed Assets

Fixed Assets Turnover Ratio 2.62 2.96 2.95 2.6

Fixed Assets Turnover Ratio

Fixed Assets Turnover Ratio

2.96 2.95

2.62 2.6

Mar '06 Mar '07 Mar '08 Mar '09

Objective and Significance: This ratio expresses the number to times the fixed assets are being
turned over in a stated period. It measures the efficiency with which fixed assets are employed. A
high ratio means a high rate of efficiency of utilization of fixed asset and low ratio means
improper use of the assets.

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 PROFIT & LOSS ANALYSIS

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1.) What does profit and loss statement exactly indicate?

The profit and loss statement reports the results of operations and indicates the reasons for
company’s profitability. It summarizes the revenues and expenses of an accounting period.

2.) What was the reason of the decline in the sales figure of Bajaj automotives in 2008-09 as
compared to the previous year?

The Indian automotive sector has been hit by the combined effect of a severe credit crunch and a
fall in demand growth. The third quarter of 2008-09 was particularly fierce. Average monthly
sales of motorcycles in India fell by
Over 17% in Q3 2008-09 versus Q2 — from an average of 524,939 units per month to 435,114.

3.) Why is there an increase in the interest payments?

The interest paid increased from 5.16 to 21.8from 2008 to 2009. The reason is due to the increase
in debt.

4.) What are the sales expectations for the next year??
Company will be introducing upgraded Pulsar models in May 2009 and brand new models for
the executive segment in the second quarter of 2009-10. With these, and the positive response to
the XCD 135 cc which was introduced in
February 2009, I expect sales to recover in 2009-10 — not to the levels seen in 2006-07, but
better than most of 2008-09.

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5.) How could company maintain healthy operating profit margins, despite contracting
sales?

Despite the severe contraction in company’s sales in 2008-09, it has been able to maintain
healthy operating margins. Indeed, the fourth quarter saw a rise in the margin to 15.2% of net
sales and other operating income. This has much to do with a better product mix, higher
productivity and lower input costs. The other reason is the management focus on lower costs and
greater profitability.

6.) What was the reason for decline in operating profit before tax?

Operating profit before tax (PBT) fell by 16.4% to Rs.8.46 billion. This was largely due to a
voluntary retirement scheme (VRS) of Rs.1.83 billion and mark-to-market losses of Rs.218
million. Even so, the operating profit margin was 9.6% of net sales and other operating income.

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 CASH FLOW ANALYSIS

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1.) What are the Major factors affecting changes in operating cash flow?

The changes in cash flow from operating activities are largely due to depreciation & VRS
compensation by the firm.

Depreciation 127.22

VRS compensation charged off 183.3

Working capital requirement- 215.65.

2.) Why there is huge requirement for working capital?

Ans: Working capital requirement 215.65

This has been made possible by the management’s conscious action to support its vendors, by
significantly reducing payment cycle. This, and the rise in export debtors, has resulted in an
increase in operating working capital requirement as at 31 March 2009.

3.) Major components of changes in working capital?

Ans: Huge cash inflow due to increase in trade and trade receivables amounting to 203.92. This
has happened due to the rise in export debtors

4.) How the requirements for working capital meet by the company?
Ans: Short term loans & other borrowings
Short term loans 261.82. The borrowings (as a part of financing activities) have helped to meet
the requirements of large working capital.

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5.) What is the major component affecting the cash flow from investing activity?
Ans: the major component would be capital expenditure decision that is 399.61.

6.) Why Bajaj auto is incurring huge Capital Expenditure?

Ans: Capital Expenditure 399.61
This large amount of capital expenditure is meant to purchase the fixed assets for the day to day
operating activities. Also there is a need to finance the expansion purposes mainly R&D and new
launch by the firm which calls for lump sum amount of capital expenditure.

7.) What are the major component affecting changes in cash flow from financing activities?
Ans: Dividend paid 288.5, short term borrowings and foreign exchange transactions are affecting
the cash flow from financing activities.

8.) From where the Dividend Paid by the company?

Ans: according to our analysis the company is paying dividend from its net worth. The dividend
declared by Bajaj auto ltd is 220%..

9.) What are these Foreign Exchange Transactions?

Foreign currency translation reserve 43.65.

The foreign exchange reserve also forms a significant part of cash outflow from the financing
activities.
This reserve arises at the time of consolidating the foreign entities (subsidiaries, Associates and
Joint ventures) with Holding company..The resultant exchange gains or loss from translating
from foreign currency to domestic country is an unrealized loss, called" Foreign currency
translation reserve".

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 CASH FLOW RATIOS ANALYSIS

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1.) What is cash flow to net ratio?
Cash Flow to net income ratio
The cash-flow-to-net-income ratio reflects the relationship between accrual-basis results of
operations and cash-basis results of operations. So it is an important indication of the extent to
which accrual-basis assumptions have affected net income.

Cash-flow-to-net-income ratio = cash from operations/net income

= 276.46/ 597.5
=0.4626

2.) How would it help Bajaj auto ltd to reach on certain conclusion?
If the cash-flow-to-net-income ratio is greater than 1, it is most likely because of noncash
expenses like depreciation and amortization, as well as revenues that are received before they are
earned. Noncash expenses reduce net income but have no effect on cash flow. The bigger the
ratio, the more accounting assumptions are impacting net income.

In the BAJAJ AUTO LTD case the ratio is less than 1.

The reason of this drastic decrease is the huge working capital requirement and VRS payout such
that even the non cash expenditure is insufficient to raise it up.

3.) What is cash flow adequacy ratio?

Cash Flow Adequacy Ratio (investing)

Cash flow adequacy refers to whether there is enough cash generated by a company’s operations
to pay for its investments in long-term assets such as its plant assets or equipment, and still have
cash to pay off debt or distribute dividends.
If ratio >1: firm’s operations generate enough cash to grow the business.
If ratio< 1: Unable to pay for business growth, and other sources of financing are needed to
support the cash cost of operations
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Cash flow adequacy ratio = Cash from operations/ Expenditures for fixed asset additions & new
business acquisitions
=276.46/ 399.61
= 0.69
As the ratio is less than 1, the firm needs other financing sources for its investing activities.

Cash flow adequacy ratio (investing & financing)

Cash flow adequacy ratio= cash from operations/ Long-term asset purchases + Long-term Debt
repayments+ Dividend payments
=276.46/399.61+5.87+288.5
=276.46/693.98
=0.39

4.) What do you infer about Bajaj auto ltd after calculating this ratio?
In BAJAJ AUTO LTD case, as the ratio is less than 1,so it can be inferred that the cash
generated from operating activities in not sufficient to support investing and financing operations
of the firm

5.) What is operating cash flow ratio? Why it is calculated?

Operating cash flow
The operating cash flow ratio is similar to the current ratio. As such, it shows the company’s
ability to generate cash from its operations, to cover its current liabilities.

Operating cash flow = Cash flow from operations/ current liabilities

= 276.46/2450.43

= 0.11

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6.) What is the significance of cash interest ratio?
Cash interest coverage
The cash interest coverage ratio conveys the company’s ability to pay the
Interest on its debt. The numerator therefore measures the cash before
Interest and tax payments are made.
Cash interest coverage=Cash flow from operations +Interest paid +Taxes paid/Interest paid

=276.46+21.89+288.8

=26.82

With the cash interest coverage ratio of 26.82, we can say that BAJAJ AUTO LTD is sufficiently
able to pay back the interest on its debt through the cash generated on its operating activities.

7.) What is the implication of cash to capital expenditure? How does it help the firm?

Cash to capital expenditure

Cash to capital expenditures focuses on company health and growth. This ratio indicates whether
a company can take advantage of opportunities for growth and still pay off debt.

Cash to capital expenditure=Cash flow from operations/Capital expenditures

=276.46/399.61
=0.69
This ratio stands at an average value comparing the industry standards. The firm is considered to
have an average health with a ratio of 0.69

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8.) What is the implication of cash to total debt?
Cash to total debt
This ratio measures the ability of firm to pay back its liabilities from the cash generated through
its operating activities. The higher the ratio, the better it is for the firm.
Cash to total debt = Cash flow from operations/Total debt
= 276.46/1603.03
= 0.17
The ratio, being less than one, signifies that the firm is not in apposition to fully pay back all its
liabilities at one go.

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 COMPARATIVE ANALYSIS

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1.) Why sales turnover less than hero Honda??

Herohonda offers efficient vehicles for huge population segment. While the major products of
the Bajaj are for the specific segments like pulsar for youth, rickshaw for commercial use. But
Bajaj is also coming up with variety of models for the mass which provides the growth
opportunity.

2.) What about the turnover ratios of hero Honda, they are healthier than Bajaj?

Yes as we can see the raw material cycle, debtor cycle, creditors cycle, all are healthy and better
than Bajaj in hero Honda

The finished turnover ratios are good because of the continues demand or the product offered
by the hero Honda so might be their finished goods inventory moves faster as compared to Bajaj.
But if we see the raw material working cycle its better in Bajaj than hero Honda which is a good
sign for Bajaj.

3.) Earning per share of Bajaj was less than hero Honda?

The current market price of Bajaj is 1700 and that of Hero Honda is 1734.55 and the EPS of
Bajaj in March was 45.37 and that of hero Honda was 64.18. So it’s clear that the Bajaj lags
behind. But just from the past data it can not be blindly said that the Bajaj will earn lesser. The
company is coming up with 2 new models this year and may be two more next year. It has
invested a lot in Research and development in the recent years which is expected to fetch good
results. Thus we can say that hero Honda is good but Bajaj can also be included in your portfolio
looking at the future growth opportunities.

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4) Should an investor invest in Bajaj Auto?

The things we can conclude from the analysis is that the current year’s EPS , P/E ratio, sales, net
profit margin are all healthier in Hero Honda and hence it gives a good opportunity to an
investor. Simultaneously Bajaj can also be a good option with respect to future growth. A slight
risk in Bajaj may lead to higher +ve return in future.

4.) What about the turnover ratios of the company?

The inventory ratios are further divided into raw material turnover and finished good turnover
ratios.

Raw material turnover ratio

Raw material turnover ratio is 53.88
Working cycle 365/53.88=6.77
We can deduce that raw material is replaced every 6.77 days, on an average. This also shows that
the raw material inventory is not kept for the long time, maintaining the required inventory level

Finished goods turnover

Finished goods turnover ratio 26.60
The working cycle 9.21
This shows that on an average finished goods are kept as an inventory for 9.21days.this is little
bit high but then also can be accepted in an auto industry.

DEBTORS AND CREDITORS TURNOVER RATIO

The debtor turnover ratio is 29.89
Working cycle (days) is 12.20
This means that the average credit given by the company is 12.20 days

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Creditor’s turnover ratio 8.484
Working cycle is 53.06 days
This means the company on an average gets credit of 53.06 days which is quiet good for the
liquidity of the company. The credit is given due to brand value of the company.

As the debtor working cycle is 12.2 very less than creditors working cycle 53.06 .Thus it is good
for the company as the company is recovering money faster and paying money after long time.

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 FACTS ABOUT THE COMPANY

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In a difficult year, there has been some positive news. The first is Bajaj Auto’s exports. During
2008-09, your company’s exports achieved an all-time high of 772,519 units of two- and three-
wheelers — representing a growth of 25% over the previous year.

Total two-wheelers 482,026 633,463 31 %

Three –wheelers 136,315 139,056 2 %
Total vehicles 618,341 772,519 25 %

Passenger vehicle sales

Industry sales 375,180 415,411 10.7%
Bajaj Auto sales 263,598 264,332 0.3%
Bajaj Auto market share 70.3% 63.6% (6.7%)

Goods carriers
Industry sales 130,826 82,382 (37.0%)
Bajaj Auto sales 26,714 10,197 (61.8%)
Bajaj Auto market share 20.4% 12.4% (8.0%)
Total 3-wheelers
Industry sales 506,006 497,793 (1.6%)
Bajaj Auto sales 290,312 274,529 (5.4%)
Bajaj Auto market share 57.4% 55.1% (2.3%)
(21st Dec 2009)

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 Annexure:

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Profit & Loss

(Rs. in Crores)

Particulars Mar-09 Mar-08

INCOME :
Sales Turnover 9,049.66 9,689.95
Excise Duty 610.07 1,029.51
Net Sales 8,439.59 8,660.44
Other Income 495.60 507.19
Stock Adjustments -24.49 67.85
Total Income 8,910.70 9,235.48
EXPENDITURE :
Raw Materials 6,441.63 6,685.37
Power & Fuel Cost 60.89 69.20
Employee Cost 534.93 442.17
Other Manufacturing Expenses 131.34 147.16
Selling and Administration Expenses 458.73 450.69
Miscellaneous Expenses 193.59 151.00
Less: Pre-operative Expenses Capitalised 14.42 23.04
Total Expenditure 7,806.69 7,922.55
Operating Profit 1,104.01 1,312.93
Interest 21.01 5.16
Gross Profit 1,083.00 1,307.77
Depreciation 129.79 173.96
Profit Before Tax 953.21 1,133.81
Tax 298.00 392.00
Fringe Benefit tax 7.50 3.35
Deferred Tax -6.79 -17.32
Reported Net Profit 654.50 755.78
Extraordinary Items -114.78 -52.79
Adjusted Net Profit 769.28 808.57
Adjst. below Net Profit 0.00 0.00
P & L Balance brought forward 0.00 0.00
Statutory Appropriations 0.00 0.00
Appropriations 654.50 755.78
P & L Balance carried down 0.00 0.00
Dividend 318.30 289.37
Preference Dividend 0.00 0.00
Equity Dividend % 220.00 200.00
Earnings Per Share-Unit Curr 41.50 48.84
Earnings Per Share(Adj)-Unit Curr 41.50 NA
Book Value-Unit Curr 129.23 109.73

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Balance Sheet

(Rs. in Crores)

Particulars Mar-09 Mar-08

SOURCES OF FUNDS :
Share Capital 144.68 144.68
Reserves Total 1,725.01 1,442.91
Total Shareholders Funds 1,869.69 1,587.59
Secured Loans 0.00 6.95
Unsecured Loans 1,570.00 1,327.39
Total Debt 1,570.00 1,334.34
Total Liabilities 3,439.69 2,921.93
APPLICATION OF FUNDS :
Gross Block 3,333.94 2,984.15
Less : Accumulated Depreciation 1,807.91 1,726.07
Less:Impairment of Assets 0.00 0.00
Net Block 1,526.03 1,258.08
Lease Adjustment 0.00 0.00
Capital Work in Progress 22.06 34.74
Investments 1,808.52 1,857.14
Current Assets, Loans & Advances
Inventories 338.84 349.61
Sundry Debtors 358.65 275.31
Cash and Bank 136.87 56.07
Loans and Advances 1,490.91 968.72
Total Current Assets 2,325.27 1,649.71
Less : Current Liabilities and Provisions
Current Liabilities 1,213.41 1,043.25
Provisions 1,224.15 834.04
Total Current Liabilities 2,437.56 1,877.29
Net Current Assets -112.29 -227.58
Miscellaneous Expenses not written off 199.56 10.53
Deferred Tax Assets 160.60 130.96
Deferred Tax Liability 164.79 141.94
Net Deferred Tax -4.19 -10.98
Total Assets 3,439.69 2,921.93
Contingent Liabilities 1,092.22 935.05

Stevens Business School Page 39

REFERENCES:
www.bajajauto.com

Stevens Business School Page 40