CAPITAL STRUCTURE ANALYSIS OF

MARUTI & INFOSYS By:

Priyatosh Pradhan(29)

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PROJECT STUDY
B IE A O TP O C S U Y R F B U R JE T T D
AK O LD E E T C N WE GM N : - P O S IN A R F R IV S O JE T E B C IV : - T K O P AT A O N W R C IC L A P IC T NO C P A B D E T G P L AIO F A IT L U GT IN . M T O OO Y E H D L G: - C M LTL O O P E EY N S C N A YD T E O D R AA L ITT N IM AIO : - L C O S M DT A K F O E AA

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Introductionone of India's Maruti Suzuki India Ltd is

leading automobile manufacturers. Maruti Suzuki India Limited (MUL) was established in Feb 1981.

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BOARD OF DIRECTORS

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Objective of MULAutomobile Industry. Modernization of the Indian

Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth.

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SHAREHOLDING PATTERN

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MARKET SHARE

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DEBT AND EQUETY

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RATIO LIQUIDITY RATIO: ANALYSIS

These are the indicators of the ability of the company to convert its assets into cash or to obtain cash to meet short term WORKING obligations CAPITAL: Working capital is a widely used measure of liquidity. Working Capital = Current Assets Current Liabilities
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TREND ANALYSIS

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DER = LTL / Shareholder's Equity

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Debt Ratio Debt Ratio = Total Debt / Total Assets

Equity Ratio Equity Ratio = Net worth / Total Assets

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TREND ANALYSIS
2007-08 Debt Equity Ratio Debt Ratio Equity Ratio
12 10 8 6 4 2 0

2006-07 0.01 0.009 0.58

2005-06 0.02 0.02 0.67

2004-05 0.07 0.05 0.70

2003-04 0.08 0.06 0.67

0.004 0.003 0.80

A new plant opened at Manesar near Gurgaon in 2006. NEW K SERIES PLANT INSTALLED IN 4/15/12

FINANCIAL ANALYSIS INFOSYS

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Infosys
Companys profile

Infosys a Banglore based company started in 1981 .

q

Mohali, Mangalore, Mysore, Hyderabad, Pune, Chennai and qBhubhaneshwar ESOP in INDIA. Pioneered in
q

The company was the first in India to register on the American stock exchange Development centers inof two million NASDAQ with an issue India American Depository Shares(ADR)that raised $70 million.
q

5th best managed company in Asia.

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Global presence

Global development center in TORONTO.

Two Proximity center at 1.Freemont.

2.California Infosys continues to 3.Boston expand in Europe.

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Management Profile

The board consists of senior officers of Infosys including all active founders, along with external members of the board who are global leaders and high achievers in business and society
.

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Independent Members of Board : Rama Bijapukar Dr.Omkar Goswami Sridar Iyengar Deepak M satwalekar Claude Smadja Dr.Marti G Subrahmanyam David L Boyles Prof.Jaffrey Sean Lehman

Infosys Executives,members of the Board and CFO: V.Balakrishnan,CFO Srinath Batni K.Dinesh N.R,Narayana Murthy Nandan M. Nilekani

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NEXT GENERATION BUSINESS MODEL 200 8 200 1 199 6 198 1

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COMPETITIVE SITUATION High quality Delivery And offering Established track record of Quality. Abundand Skilled Resources 2.5 million english speaking graduate pools. Established Industry Services markets(including BPO) estumated at $50 billion in 2008 ,export to grow to $60 billion Strong Govt. Supportin 2010.

Significant benefit

Large intangible benefits such as 4/15/12

Balance Sheet Of Infosys

Particulars Share Capital Reserves & Surplus Fixed Assets Investments Deferred Tax Assets Net Current Assets 2007-08 286 13,204 3,931 964 99 8,496 2006-07 286 10,876 3,107 839 79 7,137 2005-06 138 6,759 2,133 876 56 3,832 2004-05 135.29 5,106.44 1,494.42 1,328.70 34.03 2003-04 33.32 3,220.11 970.30 1,027.38 35.63

2,384.58 1,220.12 4/15/12

OPERATING PROFIT
operating profit Rs (in crore)
12

10

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Equity Particul 2007-08 2006-07 2005-06 2004-05 2003-04 Capital ars

Share 286 286 138 capital Reserve 13,204 10,876 6759 & surplus Total 13490 11162 6897 equity 135.29 33.32 5106.44 3220.11

5241.73 3253.43

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Graphical form
12 10 8 6 4 2 0

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Strong and Liquid Balance Sheet

Highly liquid . Zero debt Dividends up to 30% of annual post-tax profits

Superior return on invested capital & capital employed

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DEBT EQUITY RATIO It is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. DER = LTL / Shareholder's Equity

SOLVENCY RATIO

2007-08 2006-07 2005-06 2004-05 2003-04 LTL 11162 0 6897 0 -

OWNERS13490 FUND DEBT 0 EQUITY RATIO

5241.73 3253.43 0 0
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Particulars Debt-equity ratio Debtors revenue (days) Current ratio Cash and cash equivalents/ Total assets (%)/ (Equity ratio) Cash and cash equivalents/ Total revenue (%)

2007-08 72 3.28 57.00 49.14

2006-07 64 4.91 50.62 42.97

2005-06 61 2.73 64.71 49.44

2004-05 67 2.77 54.38 41.56

2003-04 48 1.65 85.11 58.16

Higher the current ratio, greater is the assurance we have that current liabilities will Total assets divided by shareholder equity. be paid. Asset/equity ratio is often used as a measure of leverage.(Equity Ratio = Net worth / Total Assets)

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COMPARITIVE ANALYSIS

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SOURCES OF FUND
MARU 2007-08 TI 2006-07 2005-06
Year Sources of fund 2004-05 2003-04 Year Sources of fund 2007-08

INFOS YS 2006-07 2005-06

2004-05 2003-04

Owners fund Equity share capital Share application money Preference share capital Reserve and surplus TOTAL
8,270.90 6,709.40 5,308.10 4,234.30 3,446.70

Owners fund 144.50 144.50 144.50 144.50 144.50 Equity share capital Share application money Preference share capital Reserve and surplus TOTAL
13240 10876 6759 5106.49 3220.11

286

286

138

135.29

33.32

8415.40 6853.90

5452.60 4378.80 3591.20

13409

1162

6897

5241.73 3253.43

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Maruti
EQUITY Rs(in crore) 12 10 8 6 4 2 0 12 10 8 6 4 2 0 4/15/12

Infosys

YEAR SECURED LOAN UNSECURED LOAN TOTAL

12 10 8 6 4 2 0
v

Maruti 2007-082006-072005-062004-052003-04 0.10 63.50 71.70 307.60 311.90

900.10 567.30 900.20 630.80 71.70

DEBT Rs(in crore)

307.60 311.90

Infosys has no Debt.

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Solvency Ratios Debt Equity Analysis

2007-08
LTL Owners Fund Debt Equity Ratio 308 90,010 0.004

Maru 2006-07 ti
835 56,730 0.01

2005-06
1,217 56,635 0.02

2004-05
3,076 44,888 0.07

2003-04
3,119 37,582 0.08

2007-08 2006-07 2005-06 2004-05 2003-04 LTL OWNER 13490 S FUND DEBT 0 11162 6897 5241.73 3253.43

Infos ys

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INFEREN CE
This project helped us to know the various insights of the companies(Maruti and Infosys).We came across the various financial aspects of the companies and it is clear that the solvency of Infosys is better than that of Maruti.

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