You are on page 1of 76

INTRODUCTION

MEANING OF FINANCE Finance may be defined as the provision of money at the time. When it is required finance refers to the management of flows of Money through an organization. It concerns with the application of skills in the manipulation used and control of money. However there are three main approaches to finance. he first approach views finance as to providing of funds need by a business on most suitable terms. The second approach relates finance to cash. The third approach views finance as being concerned with rising of funds and their effective utilization. FINANCIAL MANAGEMENT Financial management can be defined as the process of rising, providing and administrating of all money funds to be used in a business enterprise. DEFINITIONS That business activity which is concerned in meeting the financial needs the overall objectives of business enterprise." Mr. WHEELER

Financial Management on be broadly defined as activity concerned with planning, raising, controlling and administering the funds Used in business." -Mr. GUTHAMANN & DOUGALL

FINANCIAL STATEMENTS Financial statements are financial products of accounting work done during the accounting period financial statement normally includes balance sheet and profit and loss account. The financial statements are historical documents and relates to a fast period balance sheet is a statement of assets and liabilities indicating the financial position of enterprise on a certain data. Trading and profit and loss account is the report of business activities for a given period and is preparing to ascertain profits are loss for the enterprise for that period. The preparation of financial statement is not the end aim. The purposes of preparing this statement is to use for future planning and for casting and analysis and Interpretation of these financial statement is to judge there meaning and significance and an opinion is formed in respect to financial condition of concern. NEED FOR THE STUDY The purpose of financial analysis is to diagnose the information contained in financial statement so as to judge the profitability and financial soundness of the firm. Just like a doctor examines his patient by recording his body temperature, blood pressure, etc. before making his conclusion regarding the illness and before giving his treatment, a financial analysis the financial statements with various tools of analysis before commenting upon the financial health or weakness of an enterprise. The analysis and interpretation of financial statements is essential to bring out the mystery behind the figures in financial statements. OBJECTIVES OF THE STUDY Financial analysis is the process of identifying the financial strategies' and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. 1. To study the firms long term solvency and survival 2. To ascertain the firms present and future profitability 3. To study the source s of funds and applications and sources of cash and their uses during the period from 2006-2010
2

RESEARCH METHODOLOGY For this study Mahindra Tractors, karimnagar has been selected. The period of study covers 5 years (2006-2010) the study covers with the following. The present study is based on the data collected primary and secondary sources. Primary data The primary data is collected from various departments' chiefs and personnel of Mahindra Tractors, karimnagar. Secondary data The data was also collected from books of banking and annual reports of Mahindra Tractors, karimnagar. LIMITATIONS The data which has been used for the study is of only the period of 5 years. This analysis has been made purely depend on the data. The methodology for the study includes only the statement analysis. The analysis has been done from past data financial statements of Mahindra Tractors, Karimnagar.

INDUSTRY PROFILE: As commercialization of agriculture grew in intensity in the mid to late1800s the British Raj and the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947. The socialist oriented five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per year, India over-took the United States as the world's largest producer of four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today. Despite these impressive numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization. 1945 to 1960 War surplus tractors and bulldozers were imported for land reclamation and cultivation 1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960. 1961 to 1970 Local production began in 1961 with five manufacturers producing a total of 880 units per year. By 1965 this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.

1971 to 1980 Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pattie Tractors) did not survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use passing the half million mark by 1980. 1981 to 1990 A further five manufacturers began production during this period but only one of these survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa. 1991 to 1997 Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark. India now emerged as one of the world leaders in wheeled tractor production. 1997 to 1999 Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well established in the motor industry, began tractor production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching equipment. The company is making a $US 75 million initial investment in a state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and Grieves Ltd will produce tractors under similar arrangements with Same Deutz-Fahr of Italy.

Looking to South American export markets Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-200 hp range. Total annual production was forecast to reach 300,000 during the following year. 1999 to Present Facing market saturation in the traditional markets of the North West (Punjab, Haryana, and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation problems also came increased problems of "prestige" loan defaults, where farmers who were not financially able took tractors in moves to increase their families prestige. Government and private banks have both tightened their lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales once again due to stronger and national and to some extent international markets. But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000. MAHINDRA STORY: In 1962, M&M formed a joint venture with International Harvester to make tractors carrying the name Mahindra name-plate for the Indian market. Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M-a major auto maker- developed its first tractor, the B-275. This successor to International Harvester's incredibly popular B-414 is still the basis for some current Mahindra models. Today, Mahindra is the third largest tractor manufacturer in the world with sales of nearly 85,000 units annually in 10 countries. This places them ahead of John Deere & Kubota. In India, Mahindra has been the number one selling brand since 1983.

Mahindra & Mahindra Ltd. (M&M) Mahindra & Mahindra is the most respected company in India. For its SUV model 'Scorpio,' the company won the National Award for outstanding in-house research and development. Bolero, Commander, Voyager is the popular brands of the company in automotive segment. . Quick Facts Founder Country Year of Establishment Listings & its codes Plants Company Flashback: Mahindra & Mahindra Limited (M&M), the flagship company of US $ 2.59 billion Mahindra Group, has a significant presence in key sectors of the Indian economy. M&M is one of the most respected companies in India. The Company over the years has transformed itself into a Group that caters to the Indian as well as foreign markets with a presence in vehicles, farm equipment, information technology, trade and Akruli Road, Kandivli (East) finance related services, and infrastructure development. Now, they have started with a Mumbai 400 101 separate Sector, Mahindra Systems and Automotive Technologies (MSAT) in order to Tel.: +(91)-(22)-28874601 focus on developing components as well as offering engineering services. Mahindra & MahindraNasik currently employs around 11,600 people and has eight 89, MIDC Road No. 17 manufacturing facilities spread over 500,000 square meters. The company has 49 sales offices that are supported by Satpura, Nasikover 007 dealers across the country. The a network of 422 780 Tel.: +(91)-(253)-2351496 company's outstanding manufacturing and engineering skills allow it to innovate and launch new products constantly for the Indian market. The "Scorpio", a SUV developed Mouje Talegaon by the company from the ground up, resulted in the Company winning the National Taluka: Igatpuri Award for outstanding in-house research and development from the Department of Nasik 422 403 Science and Industry of the Government in theyear2003. Tel.: +(91)-(2553)-284226/ 8
7

The two brothers, J.C. Mahindra and K.C. Mahindra and Ghulam Mohammed India October 2, 1945 NSE: M&M; BSE: 500520 Mumbai

Andhra Pradesh Near Bidar, "T" Junction

In the community development sphere, M&M has implemented several programs that have benefited the people and institutions in its areas of operations. On the auspicious occasion of its 60th anniversary, the Company announced a range of CSR activities supported by a commitment of 1% of Profit after Tax for its CSR initiatives. Mahindra & Mahindra Ltd. Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59 billion Mahindra Group (F04 - US$ 1.96 billion, which has a significant presence in key sectors of the Indian economy. A consistently high performer, M&M is one of the most respected companies in the country. Set up in 1945 to make general-purpose utility vehicles for the Indian market, M&M soon branched out into manufacturing agricultural tractors and light commercial vehicles (LCVs). The company later expanded its operations from automobiles and tractors to secure a significant presence in many more important sectors. M&M has two main operating divisions - Automotive Division manufactures utility vehicles, light commercial vehicles and three wheelers. Tractor (Farm Equipment) Division makes agricultural tractors and implements that are used in conjunction with tractors, and has also ventured into manufacturing of industrial engines. Tractor Division has won the coveted Deming Application Prize 2003, making it the only tractor manufacturing company in the world to secure this prize. The Company has recently entered into a JV with Renault of France for the manufacture of a mid-sized sedan, the Logan, and with International Truck & Engine Corporation, USA, for manufacture of trucks and buses in India.

Project Sankraman - SAP R/3 Enterprise (4.7) Implementation on Centralized Architecture M&M entered into a new phase in technology initiatives from April 2005 by virtue of two important events:

Implementation of SAP R/3 Enterprise 4.7 on single instance and centralized architecture

Centralization of all servers located across various units to a single server at secure data centre located at Kandivli Although the implementation work of the project was completed in F05, the

post-launch and benefit realization were major activities in F06. This signified M&M moving closer towards being a real-time organization. It provided access to new functionalities directly catering to the Indian taxation and auto industry requirements. It also facilitated standardization of business processes, harmonized master data and better system compliance. Single sign-on and role-based authorization features provided enhanced user experience. Organization-wide information now being available on single server resulted in on-line availability of consolidated information with drill-down up to transaction level. Implementation of SAP APO (Advance Planner and Optimizer) for Automotive Sector Implemented SAP APO at Farm Equipment Sector in F04, and rolled-out at Automotive Sector in F06. SCM processes are streamlined using SAP APO. Forecasting, planning, and decision support has been facilitated through on PPDS (Production Planning Demand Scheduling) & SNP (Supply Network Planning) modules. APO-DP (Demand Planning) facilitated collaborative planning between dealers and sales offices.

Roll - out of SAP SRM (Supplier Relationship Management) The objective of this project was to extend visibility of supply end of the value chain. The supplier portal - www.mahindrasrm.com - enables suppliers to do transactions and also track material supplied to M&M from the stages of receiving, bill passing & payment. M&M buyers get online information about e-invoice created by suppliers. Suppliers are also able to view analysis related to their supplies. As a result of the roll-out, all major suppliers are now accessing SRM portal. Implementation of Strategic Sourcing supporting sourcing module is now under process. Implementation of SAP DMS-CRM (Dealer Management System - Customer Relationship Management) It is essential for Auto OEMs to keep in close contact with the end consumers, build brand loyalty and provide total customer experience. Implementation of centrally hosted Mahindra Dealer Management System (DMS) covers - Marketing, Pre-sales, Sales, Services, Spares, Warranty, Dealer Financials, Analytics, CRM and Business Intelligence. The pilot involving 50+ dealer locations initiated last year is in the final phase of implementation, to be followed by roll-out across Mahindra Dealer Community. Appropriate infrastructure including dealer connectivity is being established. Implementation of SAP DMS-CRM has provided an additional opportunity to ensure process standardization and compliance across all dealers of M&M. Enhanced the ability to integrate a change more easily across the entire dealer chain. Facilitated better customer information management, end-customer database, along with seamless integration with back-end SAP systems. Bar-coding Enabled Warehouse Management System at Spares Business Unit The Spares Business Unit (SBU) has a Warehouse at Wagholi. The spare parts required for Automotive & Farm Equipment Sector dealers are managed through this warehouse. Wireless hand-held terminals are used to scan the bar-codes on the

10

component packs. The same is integrated with SAP R/3 System and being used to track the material during Pre-packing, Binning, Picking & Packing and error-free warehouse processes. This has facilitated substantial improvement in productivity and efficiency of warehouse staff to support high volume needs of the business. Implementation of SAP CFM (Corporate Finance Management) Loans, Investment SAP CFM were implemented in F05 for Corporate Finance function. This year focused on Forex module and Market risk analyzer. This has facilitated online monitoring of financial measures such as Forex exposures, Investment portfolios, Yield to Holding etc. Project Suraksha Considering the criticality of Information Security in current business environment an organization wide security project has been initiated leading to BS7799 Certification. The scope covers all Information assets in Paper or Digital format across all the locations of M&M and underlying IT Infrastructure. Organization wide information security policies and all the relevant systems & processes have been documented and published on company intranet. All business heads/ department heads are directly responsible for ensuring policy compliance. All the information and IT assets across locations have been identified, risk analysis carried out, risk mitigation plan defined by the users and concerned departmental heads supported by Information Security team. A well defined Information Security organization structure consisting of Apex council, Information Security Councils at each location and departmental representatives is in place. Information Security Cell within Corporate IT coordinates all activities related to this initiative. M&M has deployed a world class Security Infrastructure, designed to both protect and enable business, thus ensuring Confidentiality, Integrity and Availability of the information systems at all times. Among the Security Infrastructure components are - Firewalls & Intrusion Detection System, Antivirus Architecture, Virtual Private
11

Network and Web Access, Strong Authentication, Anti-spam & Content Filtering. M&M has always been in the forefront of Information Technology adoption for business benefits. Today, Information Technology touches every corner of the business and enhances capabilities of every process taking M&M towards its IT vision of being the "Best IT Enabled Real-time Enterprise". M&M was one of the First organizations to implement SAP R/3 way back in 1998. It was the largest site in the world on Windows NT platform at that time. Today SAP R/3 Enterprise (version 4.7) integrates all the organizational processes across all the locations. Built on this platform, Information Technology has been extended to integrate with business partner processes through New Dimension solutions such as:

Supplier Relationship Management (SAP-SRM) - First to implement in Asia-Pacific region

Advance Planner & Optimizer (SAP-APO) - First to implement APO in India.

Dealer Management System - Customer Relationship Management (SAP DMS-CRM) All these are driven with the objective of providing the best products and

services to the customer at optimal cost and simultaneously ensuring the value to M&M's business partners. Other decision support and productivity improvement modules include:

Strategic Enterprise Management (SAP SEM - BCS) Business Information Warehouse (SAP BIW) Employee Self Service (ESS) through Enterprise Portal Entire design process and product data management is through Team Center

Enterprise from UGS

12

All the above business solutions are effectively delivered through state-of-art Mahindra IT Infrastructure (MahindraNet) connecting all manufacturing plants, Corporate Office, regional offices, sales offices and Data Centers with the best in class security architecture, Network Operations Center to monitor and manage this network. Redundancy for power, network, bandwidth, hardware, Data Center and DRS set-up ensure almost 100% availability of applications to users. The whole organisation is geared towards complying with the BS 7799 information security standard, which adds to the confidence of M&M customers and partner organisations. M&M will be the first BS: 7799 certified organization in India, in the manufacturing sector, with such comprehensive scope. M&M users are using various value-added IT Services such as VPN, Desktop Web Conferencing - Video & Audio interaction from desktop, Video Conferencing Video & Audio interaction and conferencing between multiple locations, Live Chats and FTP. Live Interactive chats have been a successful platform for M&M employees to communicate with Mahindra Senior Management. Senior executives share their vision, thoughts and also answer to queries from employees. This technology is used successfully for interaction between senior executives and subject experts during Finance Minister's Union Budget speech. The adoption of Information Technology has moved up the value chain, from cost savings to business enablement. The business benefits of various business solutions implemented have resulted in standardization, synergistic operations, inventory reduction, easier consolidation, and cycle time reduction and optimized business processes leading to faster operations and informed decision-making. However more importantly, IT has impacted all the business functions and processes in the organization, the value of which can be seen more in creation strategic capabilities - such as anytime, anywhere availability of secured information, facilitating collaboration and improved communication within and outside the organization, effective leveraging knowledge within the organization for business benefits, enabling organization to be more customer centric and agile.
13

PROFILE OF MAHINDRA SHOWROOM M/s. Panchasheel Enterprises, Karimnagar was established 1s1 April. 1987. By nature it is a sole proprietorship:A.J . Anatha Rao It is a not manufacturing unit and on the other hand it is a showroom for the products of MAHINDRA & MAHINDRA limited, this showroom is located at Karimnagar. Objectives of the Organization To sell the Mahindra Sc Mahindra products. To provide services to the ultimate consumers of the vehicle. To provide efficient & effective services to its consumers in time. To facilitate financial assistance to the consumers.

BRIEF HISTORY OF MAHINDRA TRACTORS 1945: On October 2, Mahindra & Mohammed formed. 1945: The Company was renamed Mahindra & Mahindra Limited (M & M) Steel Trading business was started in association with suppliers in U. 1945: Business connections in USA through Mahindra Wallace 1950: The first business with Mitsubishi Corporation (for 5000 Tons) for building plates for supply from Yawata Iron & Steel 1953: Otis Elevator Co. (India) established 1956: Shares listed on the Bombay Stock Exchange Dr. 'Beck & Co. formed - a JV with Dr. Beck & Co. Germany 1957: Mahindra Owen formed - a JV with Ruble)' Owen & Co. Ltd., UK 1958: Machine Tools Division started

14

1963: International Tractor Co. of India (ITCI) formed - a JV with International. Harvester Co., USA

1970: Mahindra Engineering & Chemical Products Ltd.(MECP) Commenced operations.

1971: International Harvester collaboration ended 1979: License from Automobiles Peugeot, France for manufacture of XDP 4.90 Diesel Engines

1982: License from KIA for manufacture of 4 Speed Transmissions Mahindra brand of tractors born Siro Plast formed 1983: M&M becomes market leader in Indian Tractor Market. (Position retained ever since) 1984: Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and market utility vehicles in Europe. Mahindra British Telecom (MBT) formed - a JV with British Tele communications plc (BT), UK

Acquired International instruments Ltd. 1989: Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW

Introduction of Commander series. Triton Over water Transport Agency Ltd., formed implementation of the Service Center project at Kahn Merged diverse activities of Steel, Machine Tools, Graphics into Inter trade Division.

15

1994: Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) formed Mahindra USA Inc., formed for distribution of Tractors in the USA EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company Ltd. A/S, Denmark Reorganization of the Group creating six Strategic Business Units MSL Division (Auto Components) hived off to form Mahindra Sona ltd. Mahindra Nissan Aileen Limited merged with tile Company.

1996:Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA to manufacture passenger cars. The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115 million.

1997: A new die shop was inaugurated at Nasik Inauguration of the Mahindra United World College of India.

1999: Launch of 'Bijlee' a battery operated, 3-wheeler environmental-friendly vehicle. The largest online used vehicle website in India launched by Mahindra Network Services. The business of Inter trade Division and Mahindra Exports Ltd. combined and renamed Mahindra Inter trade ltd.. The Company acquired major stake in Gujarat Tractors. Mahindra & Mahindra Financial Services Limited becomes a subsidiary of M& M.

2001: A 3-wheeler diesel vehicle "Champion" is launched. The Company launches Mahindra MaXX a MUV positioned with the caption Maximum Space, Maximum Comfort. M&M ties up with Renault for petrol engines. M&M established a separate division to provide Defense Solutions.

16

About Farm Equipment Manufacturers leaders in India. Poised to take on the world. For over two decades, Mahindra Tractors is the undisputed leader of the Indian tractor market, which is the largest tractor market in the world. A division of over US$ 6 billion conglomerate, Mahindra & Mahindra, we began as a joint venture with International Harvester. And with that began a new era in power, control and reliability in farm equipment manufacturing. Today, with the largest manufacturing set up in India, Mahindra Tractors is among the top three players in the global market. And as we step into the 27th year of excellence, we continue on our journey of cultivating golden harvests across the globe. Mahindra Tractors conferred with the global honour. In the year 2003, Mahindra Tractors bagged the Deming Prize, a global honour for quality practices. Three years later, the company was eligible to qualify for the Japan Quality Medal, the highest honour for excellence in Total Quality Management practices. In 2007, Mahindra Tractors became one of the 20 companies worldwide to receive this rare honour. Till date, we are the only tractor company in the world to bag this prestigious award. Mahindra Tractors goes global. Mahindra Tractors have reached all four corners of the world. And wherever we went, weve proved ourselves nothing less than the best. That explains the great demand for Mahindra tractors across the United States, Australia, Brazil, Turkey, South Africa & Syria etc among many more. In the US market, Mahindra USA, a subsidiary company of Mahindra tractors, sells more than 10,000 tractors annually. A nationwide network of over 300 dealers, total product support and prompt after sales service ensure that every tractor functions for years without any hassles.

17

Another big leap took us past the Great Wall of China. We acquired Jiangling Motor Co., to form Mahindra China Tractor Company Ltd. (MCTCL). Started operation with Jiangsu Yueda Yancheng Tractor Manufacturing Co. in the year 2008 & formed MYYTCL.The 18-35 HP tractors manufactured here cater to domestic as well as overseas markets. From China, we crossed the Pacific Ocean and entered the Australian farms. Assembled at Mahindra Australia, these tractors are sold all over the Australian continent. The variety includes a range of 2WD and 4WD compact tractors (20-30 HP range) and utility tractor models (45-85 HP range) along with attachments like loaders and mowers. These attachments can also be put to multiple uses with utmost reliability and ease. Heading eastwards from Australia, we entered the European continent and launched Mahindra Tractors at the Novi Sad fair in May 2005. Today, we have a significant presence in Turkey, Macedonia and Serbia. In the massive African continent we have already spread across 20 countries that include Angola, Tchad, Democratic Republic of Congo, Mali, Morocco, Nigeria, Sudan, The Gambia, Zambia, Egypt, Algeria, Ghana, Niger, Uganda, Tanzania, Mallawi, Mozambique, Zimbabwe, Botswana & South Africa. Besides that we have set up assembly plants in Ghana, The Gambia, Nigeria Mali & Tchad, which were technically guided and commissioned along with our channel partners in these countries. And it wont be too long before our brand of red tractors are found across the rest of the African continent. But the journey doesn?t end here. We look forward to tapping the remotest farms of the globe and continue to cultivate countless smiles. Various products of Mahindra & Mahindra available in this showroom are: Tractors, Autos, and other Agricultural implements.

18

Models in Tractors MAHINDRA BHOOMIPUTRA BHOOMIPUTRA BHOOMIPUTRA BHOOMIPUTRA SARPANCH SARPANCH SARPANCH SARPANCH ARJUN ARJUN ARJUN 275 DI 265 Dl 275 DI 475 DI 575 DI 265 DI 275 DI 475 DI 575DI 605 DI ULTRA CRPTO

Others agricultural implements available in Panchasheel Enterprises are: Disk plough, Cultivators, Harvesters, Spring cultivators etc.

19

MAHINDRA TRACTORS

NBP SERIES MODEL : 235 DI ENGINE HP: 24 HP

This single cylinder air cooled tractor is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well. MODEL : 245 DI ENGINE HP: 27 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.
20

MODEL : 275 DI

ENGINE HP: 39 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well. MODEL : 475 DI ENGINE HP: 42 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.

21

MODEL : 575 DI ENGINE HP: 45 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well. MODEL : 585 DI ENGINE HP: 50 HP

This particular line of tractors is tough, economical and reliable. With 8 forwards speeds and maximum road speed of 30 Km per hour, these tractors are especially suitable for road operations as well.
22

NST SERIES MODEL : 265 DI ENGINE HP: 32 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping. MODEL : 275 DI ENGINE HP: 39 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping.
23

MODEL : 475 DI ENGINE HP: 42 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping. MODEL : 575 DI ENGINE HP: 45 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping.

24

MODEL : 595 DI ENGINE HP: 52 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping. MODEL : 585 DI ENGINE HP: 50 HP

A complete package of a large capacity engine, heavy-duty transmission, high lift capacity hydraulics and a very robust cast iron chassis. These machines perfectly suit almost all kinds of farming operations ranging from basic chores to commercial landscaping.

25

Ultra SERIES MODEL : 445 DI ENGINE HP: 42 HP

These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing. MODEL : 555 DI ENGINE HP: 52 HP

These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing.

26

MODEL : 605 DI ENGINE HP: 59 HP

These tough and reliable tractors are designed to perform multiple tasks and take on the rigors of work with ease. They specialise in all kinds of farming operations, ranging from secondary tillage to crop protection and mowing.

27

FINANCIAL STATEMENT ANALYSIS Financial statements, as normally understood, refer to a set of reports are schedules that an accountant prepares at the end of a period of time for business enterprise. According to Smith and Ashburn, financial statement are the end products of financial accounting prepared by the accountant, the purport to reveal the financial position of the enterprise, the result of activities and an analysis of what has been done with the earnings. There are six basic financial statements of special importance. They are 1. The Income statement (or profit and loss Account) 2. The position statement (or Balance Sheet) 3. The Funds Flow Statement (or The statement of Source and Application of Funds) 4. The Cash Flow statement 5. The Statement of Retained Earnings 6. Schedules 1. The income Statement: The Income statement, also called the Profit and Loss Account, is the accounting statement that summarizes the revenues expenses and the difference between them for an accounting period. The construction of an Income statement is in accordance with the concept of Accrual, Accounting Period, Matching, materiality and Realization. There is no statutory format in which the Income Statement is to be presented, for certain organization such as Banking and Insurance companies. However, Sec. 211 of the Companies Act. 1956 prescribes the contents to be disclosed in this statement. 2. The Position Statement: The 'Position Statement' or the Balance sheet shows the financial status of a business at a given point of time. All the assets owned by the business and all the liabilities and claims it owes to outsiders and owners are listed. The Balance Sheet must always be in balance i.e., the total assets should always be equal to total liabilities. The Balance Sheet of a joint stock company must be prepared as per Part a of Schedule VI of Companies Act. Separate statutory formats exist for the preparation of the Balance Sheet of Banking and Insurance Companies.

28

3. The Funds Flow Statement: The term ''fund' normally means working capital. The funds flow statement reveals the sources from which funds are received and the uses to which these have been put. It is a valuable tool to analyze the changes in the financial condition of the business between two periods and helps the management in policy formulation and performance appraisal. 4. The Cash Flow Statement: The cash flow statement is a statement of changes in the financial position of a firm on 'Cash basis'. It is very much similar to the 'Funds Flow' statement, except that the cash flow statement lays emphasis on cash changes only. 5. The statement of Retained Earnings: The statement of retained earnings, also known as the Profit and Loss Appropriation Account, is a continuation of the Income Statement. It reveals the Profits freely available, after deduction of all expenses, including tax and how it has been appropriated. The balance after all appropriations is shown on the liabilities side of the Balance Sheet. Thus, the statement of retained earnings is the link between the Income statement and the Balance Sheet 6. Schedules: Schedules are statements that describe the summarized information presented in the Income Statement and the Balance Sheet in greater detail. Schedules are a part of the financial statements. They enable a better understanding of the financial position of a business FORMATS OF FINANCIAL STATEMENTS The two main financial statements, viz. Income Statement and Balance Sheet, can either be presented in the Horizontal form or the Vertical form. Where statutory provisions are applicable, the statement has to be prepared in accordance with such provisions. The Income Statement: There is no legal format for the Profit and Loss A/c. Therefore, it can be presented in the traditional "T" form, or vertically, in statement form. An example of the two formats is given as under.

29

Manufacturing, Trading and Profit and Loss A/c of for the year ending: Dr. Cr.

Particulars To Opening Stock Raw Materials Work in progress To Purchases of Raw Material To Manufacturing Wages To Carriage Inwards To Other Factory Expenses xxx xxx xxx xxx xxx Xxx To Opening Stock of Finished goods To Cost of finished Goods b/d To Gross Profit c/d xxx xxx xxx Xxx xxx

Particulars By Cost of Finished Goods c/d xxx By Closing Stock Raw Materials Work in progress xxx

xxx By Sales xxx

By Closing Stock Finished xxx Goods By Gross Loss c/d xxx

xxx

By Gross Profit b/d To Gross Loss b/d xxx By Miscellaneous Receipts To Office and Administration xxx Expenses " Interest and Financial By Net Loss c/d xxx xxx xxx

30

Expenses " Provision for Income Tax To Net Profit b/d

xxx

xxx xxx

To Net Loss b/d To General Reserve To Dividend To Balance c/f Xxx xxx xxx xxx xxx Xxx

By Balance b/d (from previous year) By Net Profit b/d xxx xxx

xxx

xxx

Note: The first part of (he statement, the Manufacturing A/c. is prepared only by Manufacturing concerns. In such cases, all expenses pertaining to manufacturing including depreciation on Plant and Machinery used in the factory depreciated on factory building, salary to works manager etc. will be included in the Manufacturing A/c.

31

ii) Vertical or Statement Form: The vertical form can again be prepared in two forms. A. Single step method: All revenues are listed at one place and totaled similarly, all expenses are listed at one place and totaled. The difference between the two totals gives the net profit and net loss. Statement of Profit and Loss of -----------for the year ending-------

Particulars Incomes / Revenues Sales Interest and Dividends Discounts and Commissions received Miscellaneous Receipts Expenses Cost of Goods sold Office and Administration Expenses Selling and Distribution Expenses Financial Charges Provision for Tax Net Profit/Loss

Rs.

Rs.

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

32

b) Multiple step method: In multiple step method, each item of revenue and expense is taken up step by step. Items of operating revenue and cost of goods sold are considered first, which gives the gross profit. Next, all operating expenses are deducted from gross profit, which leads to operating profit. Financial expenses are next deducted to result in Profit before tax. Tax is deducted to arrive at Profit after tax. Lastly, appropriations arc made from the available Profits and the surplus is carried to the Balance Sheet. Income statement of...........for the year ending-------

Particulars Sales Less: Sales Returns Sales Tax/Excise Duty Net Sales Cost (1) of Goods Sold

Rs.

Rs. xxx

xxx xxx xxx

xxx Materials Consumed xxx Direct Labor xxx Manufacturing Expenses xxx Add/Less Adjustment for change in stock xxx (2) Gross Profit = (1)-(2) Less: Operating Expenses xxx xxx
33

xxx

Office and Administration Expenses Selling and Distribution Expenses Operating Profit Add: Non - Operating Income

xxx xxx xxx xxx xxx

Less: Non-Operating income(including Interest) Profit Before Tax Less: Tax Profit After Tax Appropriations Transfer to Reserves Dividends declared/ Paid Surplus earned to Balance Sheet

xxx xxx

xxx xxx xxx xxx

34

Balance Sheet: The companies Act. 1956 stipulates that the Balance Sheet of a joint stock company should he prepared as per Part I of Schedule VI of the Act. However, the statement form has been emphasized upon by accountants for the purpose of analysis and interpretation. The permission of the Central Government is necessary for adoption of 'Statement' form. It must be noted that the format used by Management Accountants differs from the vertical form of Balance Sheet. The format used is a flexible statement, wherein necessary calculations can be clearly presented. For example working Capital can be shown separately as difference between Current Assets and Current Liabilities. The purpose of the statement is to ensure that its user can grasp the essential message quickly. The three forms in which Balance Sheet can be presented arc shown below: Statement form or Vertical form: Balance Sheet of---- as on---

Schedule No. I SOURCE OF FUNDS 1. Share Holder's Funds a) Capital b) Reserves and Surplus 2. Loan Funds a) Secured Loans b) Unsecured Loans TOTAL II APPLICATION OF FUNDS 1. Fixed Assets

Current year Rs.

Previous year No.

xxx xxx

xxx xxx

xxx xxx xxx

xxx xxx xxx

35

a) Gross Block b) Less Depreciation c) Net Block d) Capital work in progress 2. Investments 3. Current Assets. Loans and Advances a) Inventories b) Sundry Debtors

xxx xxx

xxx xxx

xxx c) Cash and Bank balances xxx d) Other Current Assets e) Loans and Advances

xxx xxx

xxx xxx xxx Less: Current Liabilities and Provisions xxx a) Current Liabilities xxx b) Provisions xxx Net Current Assets 4. a) Miscellaneous Expenditure to the extent not written off or adjusted b) Profit and Loss Account (debit) xxx

xxx xxx xxx xxx xxx xxx

xxx

36

TOTAL xxx xxx xxx xxx xxx xxx

xxx

The details of various items have to shown separately in schedules and the schedule number has to be mentioned in the statement.

37

ii) Horizontal Form: A brief sketch of Horizontal form is being presented below. For a detailed statement, the students are advised to refer to the text of Financial Accounting.

Schedule VI

Part I

Balance Sheet of ----------- as on ----

Liabilities Share Capital Reserves and Surplus Secured Loans Unsecured Loans Current Provisions liabilities and

Rs. xxxx xxxx xxxx xxxx

Assets Fixed Assets Investments Current Advances Assets. Loans and

Rs. xxxx xxxx

xxxx Current Assets xxxx Loans and Advances xxxx xxxx Xxxx

xxxx Current Liabilities xxxx Provisions xxxx

Miscellaneous Expenditure Profit & Loss A/c

iii) Form used by Management Accountants The vertical form of the statement is more convenient for the purpose of analysis and interpretation. As such, in all our problems, we shall use the vertical format unless instructions exist to the contrary. However, the format used by Management Accountants differs from the vertical form. The form followed by them generally is as under:

38

Balance sheet of----- as on ----

Particulars ASSETS Current Assets Cash and Bank Balances Debtors Stock Other Current Assets (1) Fixed Assets Less: Depreciation Investments (2) xxxx xxxx xxxx xxxx Xxxx xxxx xxxx xxx xxx

TOTAL

(1)+(2)

xxxx

LIABILITIES: Current Liabilities: Bills Payable Creditors Other Current Liabilities


39

xxxx xxxx

(3) Long Term Debt Debentures Other Long term Debts (4) Capital and Reserves Share Capital Reserves and Surplus (5) Total Long Term Funds TOTAL (4)+(5) (3)+(4)+(5)

xxxx xxxx

xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx

FINANCIAL STATEMENT ANALYSIS The significance of financial statements lies not in their preparation and presentation, but in their analysis and interpretation. This involves a study of relationship among various financial factors and an ability to judge their meaning and significance. The financial analyst must understand the plans and policies of management, determine the extent of analysis, reorganize data available as per requirements, establish relationship among financial figures and make interpretations in a simple unbiased way.

40

TYPES OF ANALYSIS: The process of analysis may be classified based on the nature of information used and on the basis of 'methodology' of operations. 1) On the basis of Nature of Information used: a) External analysis: The information used is that which is freely available to anybody. Published Financial Statements are an example of such information. There is no access to internal records of an organization. With increasing emphasis on disclosures in recent times, the quality of external analysis is likely to improve in the future. b) Internal Analysis: The source of information in Internal Analysis is the internal or unpublished records and books. Such analysis is undertaken for use of management or for other internal needs of the organization. 2) On the basis of Methodology of Operations: a) Horizontal Analysis: It involves analysis and review of financial statements pertaining to a number of years. An attempt is made to identify the Periodical trend of various items in the financial statements. Percentage increase/decrease is calculated for all such items. Alternatively, a base year is fixed and figures pertaining to other years are indexed to that of base period. It is also known as 'dynamic' analysis or 'trend' analysis. b) Vertical Analysis: Vertical Analysis involves analyzing a single set financial statement by expressing various items of the statement as a percentage of a particular item. Quantitative relationship is established amongst various items at a particular data. It is also known as 'Static analysis or 'Structural' analysis.

41

Methods of Financial Statement Analysis: The following methods of analysis are generally used: 1) Comparative Statements 2) Trend Analysis 3) Common Size Statements 4) Funds Flow Analysis 5) Ratio Analysis The first three methods will be discussed in this chapter, while the fifth method will be taken up separately in the next chapter. Funds Flow analysis has been separately dealt with in the text book on Advanced Management Accounting. COMPARATIVE STATEMENT ANALYSIS Comparative financial analysis refers to comparison of financial statements pertaining to two different periods by putting them side by side and finding out the changes in absolute and relative changes. Points to be noted 1. The financial date that is to be compared should be properly defined. A particular account head must have the same connotation for all the periods of comparison. 2. The accounting policies followed during the years of comparison should be uniform. If there are any changes in any Policy, the figures should be adjusted to ensure uniformity. 3. It is preferable to present financial information in 'Vertical' or 'Statement' form. 4. The Comparative financial statement must reveal changes in both 'absolute' and 'relative' measures.

42

Interpretation: 1. A change in sales is meaningful only if it is compared with a change in cost of goods sold. 2. A change in operating expenses might be due to change in scale Operations or on account of change in degree of managerial efficiency. 3. A change in net Profit is a good indicator of overall profitability of the organization. 4. A change in retained earnings can be on account of change in profitability, or on account of change in dividend policy, capitalization of free reserves or change in amounts transferred to various funds. 5. A change in working capital is a good indicator of the change in current financial position, or short-term solvency of the business. 6. A change in liquid assets is a better indicator of the short-term solvency of the business. 7. A change in fixed assets must be balanced by a change in long-term funds. 8. The nature of assets, which have increased or decreased, must be studied to understand its implications in the future. 9. Relative measures provide a sharper picture than absolute measures. TREND ANALYSIS Trend Analysis involves computation of index numbers of movements of vinous financial items in the financial statements for a number of periods. It helps in understanding the nature and role of movements in various financial factors. However, conclusions should not be drawn on the basis of a single trend. Trends of related items should be carefully studied. Due weightage should be given to extraneous factors such as Government policy, economic conditions etc... As they can affect the trend significantly.

43

Steps in computation of Trend Values: 1. Select one of the periods for which financial statements are available as the base period. The selected period should be a 'normal' period. 2. Every item is the base period is taken as '100'. 3. Trend values of each item for any other period can be calculated as under Absolute value of the item for the period Absolute value of the item in the base period Points to be noted: 1. The accounting policies for the entire period should be uniform. 2. Trend values must be read along with absolute values. 3. Non-financial factors should be considered while interpreting the trend. COMMON SIZE STATEMENTS A common size statement facilitates comparison of financial statements of not only a single firm over a time period, but also comparison of financial statements of different companies for any given time. Under this method, all the items of die statement are presented as percentages or ratios of a particular item. Therefore, even if the related absolute figures are in respect of vastly different scale of operations, a common hate for comparison is created In case of a Common Size Income Statement, all items are presented as a percentage of net sales. A Common Size Balance Sheet shows each item as a percentage of total assets or total liabilities. A common size statement helps in determining the relative efficiency and soundness of a firm and helps in understanding its financial strategy. x 100

44

RATIO ANALYSIS A ratio is a simple mathematical expression. It is a number expressed in terms of another number, expressing the quantitative relationship between the two. Katie Analysis is the technique of interpretation of financial statements with the help of various meaningful ratios. Ratios do not add to any information that is already

available, hut they show the relationship between two items in a more meaningful way. They help us to draw certain conclusions. Comparison with related facts is the basis of ratio analysis. Ratios may be used for comparison in any of the following ways. 1. Comparison of a firm with its own performance in the past. 2. Comparison of one firm with another firm in the industry. 3. Comparison of one firm with the industry as a whole 4. Comparison of an achieved performance with pre determined standards. 5. Comparison of one department of a concern with other departments. Advantages of Ratio Analysis Ratio Analysis has the following advantages; 1. Ratio Analysis simplifies the understanding of financial statements. 2. Ratios bring out the inter relationship among various financial figures and bring to light their financial significance. Ratio Analysis is a device to analyze and interpret the financial health of the enterprise. 3. Ratios contribute significantly towards effective planning and forecasting. A study of a trend in the past works as a helpful guide for the future 4. Ratios facilitate inter firm and intra firm comparison. They bring out the strengths, weaknesses and efficiency of firms and their departments. 5. Ratios serve as effective control tools. They also facilitate establishment of a standard costing system and budgetary control. 6. Ratios cater to the particular information need of a particular person, depending on his interest in the business for which ratios arc to he calculated. A creditor may be interested in liquidity ratios, while an investor may want to study profitability ratios.

45

Limitations Ratio Analysis has the following limitations: 1. Ratios may not prove to be the ideal tool for inter-firm comparisons. The two firms may adopt different accounting policies and hence the result might not be comparable. Similarly, a change in accounting policies by a firm will make intra firm comparisons meaningless. 2. A study of ratios in isolation, without studying the actual figures, may lead to wrong conclusions. Ratios arc only supplementary to, and not substitutes for absolute figures.

46

COMPARATIVE INCOME STATEMENT OF MAHINDRA TRACTORS for the Year 2005-06

PARTICULARS

YEAR 2005

YEAR 2006 12468934 10235789 2233145

ABSOLUTE CHANGE 84184 337939 253755

RELATIVE PERCENTAGE CHANGE 0.67 3.41 10.20

NET SALES {-) COST OF GOODS SOLD GROSS PROFIT (A) (-) EXPENSES OPERATING

12384750 9897850 2486900

PRINTING & STATIONERY VEHICLE MAINTANENCE ELECTRICITY CHARGES TRANSPORT EXPENSES POOJA EXPENSES PAPER AND MAGAZINES AUDITOR FEES LICENSE RENEWAL SALES TAX EDDA EXPENSES SHOW MAINTENANCE ROOM

23587 59840 34875 68741 3485 3480 4510 4980 187450 34874

24985 57452 40258 65780 2458 2450 4258 4500 198752 25875

1398 2388 5383 2961 1027 1030 252 480 11302 8999

5.92 3.99 15.43 4.3 29.46 29.59 5.58 9.63 6.02 25.80

78541

68574

9967

12.69

47

INSURANCE TELEPHONE CHARGES SADARA EXPENSES TRAVELLING EXPENSES POSTAGE TELEPHONE MUNICIPAL TAXES ADVERTISEMENT DEPRECIATION BONUS INTEREST (OTHERS) SALES PROMOTION EXPENSES COMMISSION DEBIT NOTES CHIT LOSS DIFFERENCE IN BOOKS TOTAL OPERATING EXPENSES (B) OPERATING PROFIT (A-B) (+) NON-OPERATING INCOME AND

9741 34751 42841 67410

8500 28751 46875 66785

1241 6000 4034 625

12.73 17.26 9.41 0.92

3412

3485

73

2.13

3874 42480 168741 27450 60150 397450 34870 26780 19870 196

3485 48520 158971 28410 56011 384975 35784 29874 24874 150

389 6040 9770 960 4139 12475 914 3094 5004 46

10.041 14.21 5.78 3.49 6.88 3.13 2.62 11.55 25.18 23.46

1444379

1421092

23287

1.61

1042521

812053

230468

22.10

SERVICE INCENTIVES

48

WORKSHOP

28741

27854

887

3.08

DEBIT NOTES

AND

CREDIT

12540

14200

1660

13.23

WARRANTAGE EXPENSES INTEREST (ESCORTS) WARRANTY CREDIT NOTES INSTANT

34102

29854 4248 12.45

31540

34152

2612

8.28

SUBSIDY INTEREST (OBC) TOTAL NON-OPERATING INCOME (C) TOTAL (A-B) +C = D. INCOME

4875 39780

9400 35784

4525 3996

92.84 10.045

151578

151244

334

0.22

1194099

963297

230802

19.32

(-) NON-OPERATING EXPENSES SALARIES BANK CHARGES COMMISSION INTEREST INCOME TAX TOTAL NON-OPERATING INCOME (E) AND 298741 358700 59960 20.07

78450

87540

9090

11.58

204510 4580 586281

198751 5540 650531

5759 960 64520

2.81 20.96 10.95

49

PROFIT BEFORE TAX (D-E) (-) T D S PROFIT AFTER TAX

611305 3487 607818

312766 2485 310281

298539 1002 397537

48.83 28.37 48.15

INTERPRETATION (2005-2006): Net sales in the year 2005 are 12384750 and in the year 2006 are 12468934. It means increase in the year 2006 by 84184. Gross Profit in the year 2005 is 2486900. It decreases to 2233145 by 253755 in 2006. Therefore the profitability position of the company is not satisfactory.

50

COMPARATIVE INCOME STATEMENT OF MAHINDRA TRACTORS for the Year 2006-07


YEAR PARTICULARS YEAR 2006 2007 RELATIVE ABSOLUTE PERCENTAGE CHANGE CHANGE

NET SALES {-) COST OF GOODS SOLD GROSS PROFIT (A) (-) OPERATING EXPENSES PRINTING & STATIONERY VEHICLE MAINTANENCE ELECTRICITY CHARGES TRANSPORT EXPENSES POOJA EXPENSES PAPER AND MAGAZINES AUDITOR FEES LICENSE RENEWAL SALES TAX EDDA EXPENSES SHOW ROOM MAINTENANCE INSURANCE TELEPHONE CHARGES

12468934 10235789 2233145

12630967 10586900 2044067

162033 351111 189078

1.29 3.43 8.46

24985 57452 40258 65780 2458 2450 4258 4500 198752 25875

25898 58286 38913 66996 2159 NIL 5200 NIL 299584 19840

913 834 1345 1216 299 2450 942 4500 100832 6035

3.65 1.45 3.34 1.84 12.16 100 22.121 100 50.73 23.32

68574

62697

5877

8.57

8500 28751

NIL 29501

8500 750

100 2.60

51

SADARA EXPENSES TRAVELLING EXPENSES POSTAGE AND TELEPHONE MUNICIPAL TAXES ADVERTISEMENT DEPRECIATION BONUS INTEREST (OTHERS) SALES PROMOTION EXPENSES COMMISSION DEBIT NOTES CHIT LOSS DIFFERENCE IN BOOKS TOTAL OPERATING EXPENSES (B) OPERATING PROFIT (A-B) (+) NON-OPERATING INCOME WORKSHOP SERVICE INCENTIVES DEBIT AND CREDIT NOTES WARRANTAGE EXPENSES INTEREST (ESCORTS) WARRANTY INSTANT CREDIT NOTES SUBSIDY

46875 66785 3485 3485 48520 158971 28410 56011 384975 35784 29874 24874 150 1421092 812053

45984 65888 5849 4696 79987 198459 28500 60292 445868 37532 25195 53307 101

891 897 2364 1211 31467 39488 90 4281 60890 1748 4679 28433 49 239642 428720

1.9008 1.343 67.83 34.74 64.85 24.83 0.31 7.64 15.81 4.88 15.66 114.30 32.66 16.86 52.79

1660734 383333

27854 14200 29854 34152 9400

25969 14700 NIL 24066 36305 9100

1885 500 5788 2153 300

6.76 3.52 19.38 6.30 3.191

52

INTEREST (OBC)

35784

36016

232

0.64

TOTAL NON-OPERATING INCOME (C) TOTAL INCOME (A-B) +C = D.

151244

483890

332646

219.93

963297

867223

96074

9.97

(-) NON-OPERATING EXPENSES

SALARIES

358700

342000

16700

4.655

BANK CHARGES AND COMMISSION INTEREST INCOME TAX

87540

88608

1068

1.22

198751 5540

182432 6600

16319 1060

8.21 19.13

TOTAL NON-OPERATING INCOME (E) PROFIT BEFORE TAX (D-E) (-) T D S PROFIT AFTER TAX

650531 312766 2485 310281

619640 247583 2648 244935

30890 65183 163 65346

4.74 20.84 6.55 21.06

INTERPRETATION (2006-2007): Net sales in the year 2007 are 1.26,30,967 and in the year 2008 is 1, 9398,955. It means increase in the year 2008 by 67.67,988. Gross Profit in the year 2007 is 20,

44,067. It decreases to 19, 17,975 by 1, and 26,092 in 2008. Operating Profit is also decreased from 3.83,333 to 2, 83,579 in the year 2008 by 99,754. Therefore profitability position of the company is not satisfactory.
53

COMPARATIVE INCOME STATEMENT OF MAHINDRA TRACTORS for the Year 2007-08

PARTICULARS

YEAR 2007

YEAR 2008

RELATIVE ABSOLUTE PERCENTAGE CHANGE CHANGE

NET SALES {-) COST OF GOODS SOLD GROSS PROFIT (A) (-) OPERATING EXPENSES PRINTING & STATIONERY VEHICLE MAINTANENCE ELECTRICITY CHARGES TRANSPORT EXPENSES POOJA EXPENSES PAPER AND MAGAZINES AUDITOR FEES LICENSE RENEWAL SALES TAX EDDA EXPENSES

12630967 10586900 2044067

19398955 17480980 1917975

6767988 6894080 126092

53 58 65.12 6.17

25898 58286 38913 66996 2159 NIL 5200 NIL 299584 19840

37256 85116 42058 68912 1461 1458 8250 100 322111 NIL

11358 26830 3145 1916 698

43.86 46.03 8.08 2.86 32.33

3050

58.65

22527

7.52

SHOW ROOM MAINTENANCE

62697

65218

2521

4.02

54

INSURANCE TELEPHONE CHARGES SADARA EXPENSES TRAVELLING EXPENSES POSTAGE AND TELEPHONE MUNICIPAL TAXES ADVERTISEMENT DEPRECIATION BONUS

NIL 29501 45984 65888 5849 4696 79987 198459 28500

12351 37045 39088 84850 7315 6349 44523 92125 26850 7544 6896 18962 1466 1651 35464 106334 1650 2557 15.00 28.78 25.06 35.14 44.34 53.58 5.79

INTEREST (OTHERS)

60292

65582

5290

8.77

SALES PROMOTION EXPENSES COMMISSION DEBIT NOTES CHIT LOSS DIFFERENCE IN BOOKS

44586S

482750

36882

8.27

37532 25195 53307 101

39115 29392 35121 NIL

1583 4197 18186

4.22 16.66 34 12

TOTAL OPERATING EXPENSES (B) OPERATING PROFIT (A-B) (+) NON-OPERATING INCOME SERVICE INCENTIVES

1660734

1634396

26338

1.59

383333

283579

99754

26.02

337734

354585

16851

4.99

55

WORKSHOP DEBIT AND CREDIT NOTES WARRANTAGE EXPENSES INTEREST (ESCORTS) WARRANTY INSTANT CREDIT NOTES SUBSIDY INTEREST (OBC) TOTAL NON-OPERATING INCOME (C) TOTAL INCOME (A-B) +C = D. (-) NON-OPERATING EXPENSES

25969 14700 NIL 24066 36305 9100 36016 483890 867223

36638 9566 9069 34213 35121

10669 5134 10147 1184

41.08 34.93 42.16 3.26 34.79 26 79 11.00 5.36

12266 45666 537124 820703

3166 9650 53234 46520

SALARIES BANK CHARGES AND COMMISSION INTEREST INCOME TAX

342000 88608 182432 6600

375000 19421 201474 27467

33000 69187 19042 20867

9.65 78.08 10.44 316.17

TOTAL NON-OPERATING INCOME (E)

619640

623362

3722

0.60

PROFIT BEFORE TAX (D-E) (-) T D S PROFIT AFTER TAX

247583 2648 244935

197341 2400 194941

50242 248 49994

20.29 9.37 20.41

56

INTERPRETATION (2007-2008): Net sales in the year 2007 are 1.26,30,967 and in the year 2008 is 1, 9398,955. It means increase in the year 2008 by 67.67,988. Gross Profit in the year 2007 is 20, 44,067. It is decreased to 19, 17,975 by 1, 26,092 in 2008.Operating Profit is also decreased from 3.83,333 to 2, 83,579 in the year 2008 by 99,754. Therefore profitability position of the company is not satisfactory.

57

COMPARATIVE INCOME STATEMENT OF MAHINDRA TRACTORS, for the year 2008-09

PARTICULARS

YEAR 2008

YEAR 2009

ABSOLUTE CHANGE

RELATIVE PERCENTAGE CHANGE 39 34 45.45 16.34

NET SALES

19398955

27030590 25426017 1604573

7631635 7945037 313402

(-) COST OF GOODS SOLD 17480980 GROSS PROFIT (A) (-) OPERATING EXPENSES PRINTINGS STATIONERY VEHICLE MAINTANENCE ELECTRICITY CHARGES TRANSPORT EXPENSES POOJA EXPENSES PAPER AND MAGAZINES AUDITOR FEES LICENSE RENEWAL SALES TAX SHOW ROOM MAINTENANCE INSURANCE TELEPHONE CHARGES SADARA EXPENSES 37256 85116 42058 68912 1461 1458 8250 100 322111 1917975

18194 84859 60918 15611

19062 257 18860 53301

51.16 0.30 44.84 77.35

750 8100

708 150 100

48 56 1.82 100.00 77.04

73966

248145

65218

92802

27584

42.30

12351 37045 39088

43697 92471 21354

31346 55426 17734

253.79 149.62 45.37

58

TRAVELLING EXPENSES

84850

62215

22635

26.68

POSTAGE AND TELEPHONE

7315

2220

5095

69.65

MUNICIPAL TAXES ADVERTISEMENT DEPRECIATION BONUS INTEREST(OTHERS) SALES PROMOTION EXPENSES COMMISSION DEBIT NOTES CHIT LOSS

6349 44523 92125 26850 65582 482750 39115 29392 35121 37450 312487 48000 413341 1388435

6349 7073 220362 21150 65582 482750 374226 29392 35121

100 00 15.89 239 20 78.77 100.00 100.00 956.73 100 00 100.00

TOTAL OPERATING EXPENSES OPERATING PROFIT (A-B) (+) NON-OPERATING INCOME SERVICE INCENTIVES WORKSHOP DEBIT AND CREDIT NOTES WARRANTAGE EXPENSES INTEREST (ESCORTS) WARRANTY INSTANT CREDIT NORES SUBSIDY

1634396

1388435

245961

15.05

283579

216138

67441

23.78

354585 36638 9566 9069 34213 35121 12266

129470

225115 36638

63.49 100.00 7340.28 100.00 25.45 100.00 100.00

42920

702171 9069 8707 35121 12266

59

INTEREST (OBC) DIFFERENCE IN BOOKS

45666 217 537124

45666 217

100.00

TOTAL NON-OPERATING INCOME (C) TOTAL INCOME (A-B)+C = D (-) NON-OPERATING EXPENSES SALARIES

537124

884344

347220

64.64

020703

1100482

279779

34.09

375000

576000

201000

53.60

BANK CHARGES AND COMMISSION INTEREST INCOME TAXTADFL TOTAL NON-OPERATING INCOME (E) PROFIT BEFORE TAX (D-E) (-) T D S PROFIT AFTER TAX

19421 201474 27467

43110 166576

23689 201474 139109

121.98 100.00 506.46

623362 197341 2400 194941

828056 272426 28574 243852

204694 75085 26174 48911

32.84 38.05 1090 58 25.09

INTERPRETATION (2008-2009):

Net sales in the year 2008 are 1.93, 98.955 and in the year 2009 is 2, 70.30.590. It means increase in the year 2009 by 76, 31,635. Gross Profit in the year 2008 is 19, 17,975, it decreases to 16, 04,573 by 3, and 13,402 in 2009. Operating Profit is also decreased from 2, 83,579 to 2, and 16,138 in the year 2009 by 67,441. Therefore profitability of the company is satisfactory.
60

COMPARATIVE INCOME STATEMENT OF MAHINDRA TRACTORS, for the year 2009-10

PARTICULARS

YEAR 2009

YEAR 2010

ABSOLUTE CHANGE

RELATIVE PERCENTAGE CHANGE

NET SALES (-) COST OF GOODS SOLD GROSS PROFIT (A) (-) OPERATING EXPENSES PRINTINGS STATIONERY VEHICLE MAINTANENCE ELECTRICITY CHARGES TRANSPORT EXPENSES CAR PAPER AND MAGAZINES AUDITOR FEES PROFESSIONAL TAX SALES TAX SHOW MAINTENANCE INSURANCE ROOM

27030590 25426017 1604573

28408532 26066725 2341807

1377942 640708 737234

5.10 252 45.95

18194 84859 60918 15611

73641 152003 47350 57461 1506

55447 67144 13568 41850 1505 4668 0 2500 6684

304.75 79.12 22.27 268.08

750 8100

5418 8100 2500

622.40 0.00

73966

80650

9.04

92802

67840

24962

26.90

43697

29378

14319

32.77

61

TELEPHONE CHARGES SADARA EXPENSES TRAVELLING EXPENSES POSTAGE AND TELEPHONE LAND REVENUE ADVERTISEMENT DEPRECIATION BONUS COMMISSION DISCOUNT DEBIT NOTES CHIT LOSS SALES EXPENSES PROMOTION AND

92471 21354 62215 2220 37450 312487 48000 413341 -

32335 30558 11304 12099 2269 264101 282966 48000 30519 255678 91160 262830

60136 9204 50911 9879 2269 226651 29521 0 382822 255678 91160 262830

65.03 4310 81.83 445.00 100 605.21 9.45 0 00 92.62 100 100 100

HIRE CHARGES REPAIRS

7603 15145 1872413 469394

7603 15145 483978 253256

100 100 34.86 117.17

TOTAL OPERATING EXPENSES (B) OPERATING PROFIT (A-B) (+) NON-OPERATING INCOME SERVICE INCENTIVES INTEREST ON DEPARTMENT SECURITY 711737
62

1388435 216138

129470

145430

15960

12.33

86895 -

86895 711737 100.00

DEBIT AND CREDIT NOTES

INTEREST (ESCORTS) WARRANTY CREDIT NORES INSTANT

42920

42920

100.00

482506

482506

100

PUBLICITY CREDIT NOTE DIFFERENCE IN BOOKS TOTAL NON-OPERATING INCOME (C) TOTAL INCOME (A-B)+C = D (-) NON EXPENSES SALARIES BANK CHARGES COMMISSION INCOME TAX BANK INTEREST TADFL TOTAL NON-OPERATING INCOME (E) AND -OPERATING

217 884344 1100482

81935

81935 217

100 100 00 9.90 15.06

796766 1266160

87578 166678

676000 43110

576000 24665 9600

0 18445 9600 19402 253048

0.00 42.79

166576 42370

147174 295418

11.65 597.23

828056

1052857

224801

27.15

PROFIT BEFORE TAX (D-E) (-)TDS PROFIT AFTER TAX

272426 28574 243852

213303 9052 204251

59123 19522 39601

21.70 68.32 16.24

INTERPRETATION (2009-2010): Net sales in the year 2009 are 2, 70, and 30,590 and in the year 2010 is 2, 84, and 08,532. It means increase in the year 2010 by 13, 77,942. Gross Profit in the year 2009 is 16, 04.573. It increases to 23, 41,807 by 7, and 37,234 in 2010. Operating Profit is also increased from 2.16,138 to 4, 69,394 in the year 2010 by 2, 53,256. Therefore the profitability position of the company is satisfactory
63

COMPARATIVE BALANCE SHEET OF MAHINDRA TRACTORS., for the Year - 2005 06

YEAR PARTICULARS 2005

YEAR 2006

RELATIVE ABSOLUTE PERCENTAGE CHANGE CHANGE

I ASSETS (A)CURRENT ASSETS CASH ON HAND CLOSING STOCK SUNDRY DEBTORS RENT ADVANCE SECURITY DEPOSIT CASH AT BANK TOTAL CURRENT ASSETS (A) (B) FIXED ASSETS NET BLOCK TOTAL FIXED ASSETS (B) TOTAL ASSETS (A+B) II. LIABILITIES 1234520 1234520 3802230 721850 721850 3415207 512670 512670 387023 41.52 41.52 10.17 43852 1258940 1059781 159740 34850 10547 44852 1298200 1167850 148000 24580 9875 1000 39260 108069 11740 10000 672 2.28 3.11 10.19 7.34 28.69 6.37

2567710

2693357

125647

48.75

64

(C) CURRENT LIABILITIES OUTSTANDING-PAYABLE SUNDRY CREDITORS 11587 1258970 12587 1048750 1000 1154120 8.63 91.67

TOTAL CURRENT LIABILITIES (C)

1258970

1061337

1154120

91.67

(D) LONG TERM LIABILITIES

SUBDEALER DEPOSIT BANK LOAN

155980 728540

145870 659480

10110 69060

6.48 9.47

TOTAL LONG TERM LIABILITES (D)

884520

805350

79170

8.95

(E) OWNER FUNDS SHARE CAPITAL TOTAL OWNER FUNDS (E) 1658740 1658740 1548520 1548520 110220 110220 6.64 6.64

TOTAL LIABILITIES (C+D+E)

3802230

3415207

387023

10.17

NET WORKING CAPITAL (A-C) LONG TERM FUNDS (D+E)

1308740

1632020

323280

24.70

254320

2353870

189390

74.46

65

INTERPRETATION (2005-2006): The total Current Assets in 2007 is 2697037 and in the year 2008 is 4034714. It means that there is an increase in the year 2008 i.e., 1337677. The Total Assets in 2007 is 3340481 and in the year 2008 it is 4755600. Current Liabilities in 2007 is 1054825 and in 2008 it is 1813623. Net Working Capital in 2007 is 1642212 and in 2008 it is 2221091. Long term Funds in 2007 is 2285656 and in 2008 it is 2941977.

66

COMPARATIVE BALANCE SHEET OF MAHINDRA TRACTORS., for the Year - 2006 07


RELATIVE ABSOLUTE PERCENTAGE CHANGE CHANGE

PARTICULARS

YEAR 2006

YEAR 2007

I ASSETS (A)CURRENT ASSETS CASH ON HAND CLOSING STOCK SUNDRY DEBTORS RENT ADVANCE SECURITY DEPOSIT CASH AT BANK 44852 1298200 1167850 148000 24580 9875 45574 1226960 1246647 150000 19903 7953 2697037 722 71240 78797 2000 4677 1922 3680 1.60 5.48 6.74 1.35 19.02 19.64 0.13

TOTAL CURRENT ASSETS 2693357 (A) (B) FIXED ASSETS NET BLOCK 721850

643444 643444 3340481

78406 78406 74726

10.86 10.86 2.18

TOTAL FIXED ASSETS (B) 721850 TOTAL ASSETS (A+B) II. LIABILITIES (C) CURRENT LIABILITIES OUTSTANDING-PAYABLE SUNDRY CREDITORS 12587 1048750 3415207

10015 1044810 1054825

2572 3940 6512

20.43 0.37 0.67

TOTAL CURRENT 1061337 LIABILITIES (C) (D) LONG TERM LIABILITIES

67

SUBDEALER DEPOSIT BANK LOAN TOTAL LONG LIABILITES (D) (E) OWNER FUNDS SHARE CAPITAL TERM

145870 659480 805350

166227 595730 761957

20357 63750 43393

13.95 9.66 5.38

1548520

1523699 1523699 3340481 1642212 2285656

24821 24821 74726 10192 68214

1.60 1.60 2.1810 0.62 2.89

TOTAL OWNER FUNDS (E) 1548520 TOTAL LIABILITIES 3415207 (C+D+E) NET WORKING CAPITAL 1632020 (A-C) LONG TERM FUNDS (D+E) 2353870

INTERPRETATION (2006-2007): The total Current Assets in 2007 is 2697037 and in the year 2008 is 4034714. It means that there is an increase in the year 2008 i.e., 1337677. The Fixed Assets in the year 2007 is 643444 and in the year 2008 it is 720886. It has been increased when compared with 2007 i.e., 77442. Current Liabilities in 2007 is 1054825 and in 2008 it is 1813623. There is an increase in the year 2008 when compared to the previous year i.e., 758798. Net Working Capital in 2007 is 1642212 and in 2008 it is 2221091. Long term Funds in 2007 is 2285656 and in 2008 it is 2941977.

68

COMPARATIVE BALANCE SHEET OF MAHINDRA TRACTORS., for the Year - 2007 08


RELATIVE YEAR ABSOLUTE PERCENTAGE 2008 CHANGE CHANGE

PARTICULARS

YEAR 2007

I ASSETS (A)CURRENT ASSETS CASH ON HAND CLOSING STOCK SUNDRY DEBTORS RENT ADVANCE SECURITY DEPOSIT CASH AT BANK TOTAL CURRENT ASSETS (A) (B) FIXED ASSETS NET BLOCK TOTAL FIXED ASSETS (B) TOTAL ASSETS (A+B) II. LIABILITIES (C) CURRENT LIABILITIES OUTSTANDING-PAYABLE SUNDRY CREDITORS TOTAL CURRENT LIABILITIES (C) (D) LONG TERM LIABILITIES 10015 1044810 1054825 26715 1786908 1813623 16700 742098 758798 166.75 71.03 71.94 643444 643444 3340481 720886 720886 4755600 77442 77442 1415119 12.04 12.04 42.36 45574 1226960 1246647 150000 19903 7953 2697037 54866 2914305 531043 300000 34500 200000 4034714 9292 1687345 715604 150000 14597 192047 1337677 20.39 137.52 5740 100.00 73.34 2414.77 49.60

69

SUBDEALER DEPOSIT BANK LOAN TOTAL LONG TERM LIABILITES (D) (E) OWNER FUNDS SHARE CAPITAL TOTAL OWNER FUNDS (E) TOTAL LIABILITIES (C+D+E) NET WORKING CAPITAL (A-C) LONG TERM FUNDS (D+E)

166227 595730 761957

668777 1483399 2152176

502550 887669 1390219

302.33 149.01 182.45

1523699 1523699 3340481 1642212 2285656

789801 789801 4755600 2221091 2941977

733898 733898 1415119 578879 656321

48.17 48.17 42.36 35.25 28.71

INTERPRETATION (2007-2008): The total Current Assets in 2007 is 2697037 and in the year 2008 is 4034714. There is an increase in the current assets in the year 2008 i.e., 1337677. The Total Assets in 2007 is 3340481 and in the year 2008 it is 4755600. There is an increase in the total assets in the year 2008 i.e., 1415119. Current Liabilities in 2007 is 1054825 and in 2008 it is 1813623. Net Working Capital in 2007 is 1642212 and in 2008 it is 2221091. Long term Funds in 2007 is 2285656 and in 2008 it is 2941977.

70

COMPARATIVE BALANCE SHEET OF MAHINDRA TRACTORS, for the year 2008-09


PARTICULARS I. ASSETS (A) CURRENT ASSETS CASH ON HAND CLOSING STOCK SUNDRY DEBTORS RENT ADVANCE SECURITY DEPOSIT CASH AT BANK TOTAL CURRENT ASSETS (A) (B) FIXED ASSETS NET BLOCK TOTAL FIXED ASSETS (B) TOTAL ASSETS (A+B) II. LIABILITIES (C) CURRENT LIABILITIES OUTSTANDING PAYABLE SUNDRY CREDITORS TOTAL CURRENT LIABILITIES (C) (D) LONG TERM LIABILITIES SUBDEALER DEPOSIT 668777 1050000 381223 57 00 26715 1786908 1813623 44287 8473741 8518028 17572 6686833 6704405 65.78 374.21 369.67 720886 720886 4755600 137503 137503 12051117 583383 583383 7295517 80.93 80.93 153.41 54866 2914305 531043 300000 34500 200000 4034714 107645 78567S8 1451138 260000 1224354 1013679 11913614 52779 4942493 920095 40000 1189854 813679 7878900 96.20 169.59 173 26 13.33 344885 406.84 195.28 YEAR 2008 YEAR 2009 RELATIVE ABSOLUTE PERCENTAGE CHANGE CHANGE

71

BANK LOAN

148339

1809391 2859391

325992 707215

21.98 32.86

TOTAL LONG TERM LIABILITES (D) 2152176 (E) OWNER FUNDS SHARE CAPITAL TOTAL OWNER FUNDS (E) TOTAL LIABILITIES (C+D+E) NET WORKING CAPITAL (A-C) LONG TERM FUNDS (D+E) 789801 789801 4755600 2221091 2941977

673698 673698 12051117 3395586 3533089

116103 116103 7295517 1174495 591112

14.70 14.70 153.41 52.88 20.09

INTERPRETATION (2008-2009): The total Current Assets in 2008 is 4034714 and in 2009 it is 11913614. There is an increase in the current assets in the year 2009 i.e., 7878900. The Fixed Assets in the year 2008 is 720886 and in the year 2009 it is 137503. There is a decrease in the fixed assets in the year 2009 i.e., 583383. The Total Assets in 2008 is 4755600 and in the year 2009 it is 12051117. There is an increase in the total assets in the year 2009 i.e., 7295517. Current Liabilities in 2008 is 1813623 and in 2009 it is 8518028. There is an increase in the current liabilities in the year 2009 i.e., 6704405. Net Working Capital in 2008 is 2221091 and in 2009 it is 3395586. Long term Funds in 2008 is 2941977 and in 2009 it is 3533089.

72

COMPARATIVE BALANCE SHEET OF MAHINDRA TRACTORS for the year 2009-10

PARTICULARS I. ASSETS (A) CURRENT ASSETS CASH ON HAND CLOSING STOCK SUNDRY DEBTORS RENT ADVANCE SECURITY DEPOSIT CASH AT BANK TOTAL CURRENT ASSETS (A) (B) FIXED ASSETS NET BLOCK TOTAL FIXED ASSETS (B) TOTAL ASSETS (A+B) II. LIABILITIES (C) CURRENT LIABILITIES OUTSTANDING PAYABLE SUNDRY CREDITORS TOTAL CURRENT LIABILITIES (C)

YEAR 2009

YEAR 2010

ABSOLUTE CHANGE

RELATIVE PERCENTAGE CHANGE

107645 7856798 1451138 260000 1224354 1013679

222013 1115335 1254567 100000 11213 50787

114368 6741463 196571 160000 1213141 962892 9159699

106.25 85 80 13.55 61.54 99 08 94.99 76.88

11913614 2753915

137503 137503

585907 585907

448404 448404 8711295

326 10 326.10 72.29

12051117 3339822

44287 8473741 8518028

27667 1306791 1334458

16620 7166950 7183570

37.53 84.58 84.33

73

(D) LONG TERM LIABILITIES SUBDEALER DEPOSIT BANK LOAN 1050000 1809391 74600 612621 687221 975400 1196770 2172170 92.90 66.14 75.97

TOTAL LONG TERM LIABILITES (D) 2859391 (E) OWNER FUNDS SHARE CAPITAL TOTAL OWNER FUNDS (E) TOTAL LIABILITIES (C+D+E) NET WORKING CAPITAL (A-C) LONG TERM FUNDS (D+E) 673698 673698

1318143 1318143

644445 644445 8711295 1976129 1527725

95.66 95.66 72.29 58.20 43.24

12051117 3339822 3395586 3533089 1419457 2008364

INTERPRETATION 2009-2010 The total Current Assets in 2009 is 11913614 and in 2010 it is 2753915. There is a decrease in the current assets in the current year i.e., 9159699. The Fixed Assets in the year 2009 is 137503 and in the year 2010 it is 585907. There is an increase in the fixed assets in the current year i.e., 448404. The Total Assets in 2009 is 12051117 and in the year 2010 it is 3339822. There is a decrease in the total assets in the current year i.e., 8711295. Current Liabilities in 2009 is 8518028 and in 2010 it is 1334458. There is a decrease in the current liabilities in the current year i.e., 7183570. Net Working Capital in 2009 is 3395586 and in 2010 it is 1419457. Long term Funds in 2009 is 3533089 and in 2010 it is 2005364.

74

CONCLUSIONS
A marketing function is an art of transformation of goods; operations are services by which producer and final consumer are linked together. It consists of services of operations which may be performed several times either by producer or middlemen till the commodity reaches into the hands of customers. The following conclusions have been drawn from the analysis. 1) Many of the customers purchased the Mahindra Tractors newly. 2) Performance is the stimulating factor in purchasing the Mahindra Tractors. 3) Customers are satisfied with the quality, physical appearance and features of Mahindra Tractors. 4) Durability of all the brands in Mahindra Tractors is medium. 5) The fuel consumption in Mahindra Tractors is medium. 6) The maintenance cost of Mahindra Tractors is low. 7) The price of the Mahindra Tractors is high. 8) The liquidity position of the company shows that the company is not meeting their requirements at the expected levels. 9) The fixed assets of the company show better position. 10) The profits of the company shows targeted results in the last before years. 11) Customers purchase Mahindra Tractors on installment basis.

75

BIBLIOGRAPHY

S.NO

AUTHOR NAME

BOOK TITLE

PUBLICATIONS EDITION/YEAR Vikas Publishing Houses Pvt ltd 2006

IM Pandey

Financial management

9th edition

R.P. Trivedi & Manoj Trivedi

Cost and management accounting

Pankaj Publications

first edition 2002

Magnus school of business

Financial management

Vikas Publishing Houses Pvt ltd

2006

ANNUAL REPORTS OF MAHINDRA TRACTORS. KARIMNAGAR

76