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Maruti Suzuki India Limited

Brief History Maruti Suzuki India Limited, usually referred to as Maruti, is a subsidiary company of Suzuki Motor Corporation (Japanese automaker). Maruti Suzuki India is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. It was the first company in India to mass-produce and sell more than a million cars. It is mostly credited for bringing in an automobile revolution to India. Maruti Udyog Limited (MUL) was established in February 1981, the actual production began in 1983 with the Maruti 800, which was the only modern car available in India at that time. Main Products Entry Level 800 Alto Alto 800 Hatchback Ritz A-Star Swift Wagon-R Estillo Sedans DZire SX4 'C' Segment Maruti Eeco Multi-Purpose Vehicle Ertiga Sports Utility Vehicle Grand Vitara

Key Members Post Chairman Managing Director and CEO Director Director Director and Managing Executive Office (Engineering) Director Director Director Director Director and Managing Executive Officer (Production) Director and Managing Executive Officer (Supply Chain) Name Mr. R. C. Bhargava Mr. Shinzo Nakanishi Mr. Amal Ganguli Mr. D. S. Brar Mr. Keiichi Asai Mr. Osamu Suzuki Mr. Kinji Saito Ms. Pallavi Shroff Mr. Kenichi Ayukawa Mr. Tsuneo Ohashi Mr. Kazuhiko Ayabe

Awards The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012 among the brands researched in India. Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which launched in April 2012.

Mahindra & Mahindra


Brief History Mahindra & Mahindra was started as a steel trading company in the year 1945. Mahindra & Mahindra stepped in automotive manufacturing in 1947 (brought the iconic Willys Jeep on Indian roads). They have diversified into many new sectors in order meet the customers needs. Mahindra & Mahindra operate in 18 major industries which form every modern economys base: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defence, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Main Products
Commercial Vehicles Alfa Gio Mahindra Navistar Trucks Bolero Maxi Truck Genio Loadking Maxximo Tourister Buses Personal Vehicles Bolero REVA Electric Cars Scorpio Thar Verito Xylo Actyon Actyon Sports Chairman W Korando Kyron Rexton Rodius

XUV 500 Quanto

Key Members Post Chairman Emeritus Mahindra & Mahindra Chairman & Managing Director Mahindra & Mahindra Executive Director & Group CFO President Automotive & Farm Equipment Sectors Chief Executive International Operations, Automotive & Farm Equipment Divisions Chief Executive Automotive Division Chief Executive Technology, Product Development and Sourcing, Automotive & Farm Equipment Sectors Awards Mahindra's Auto & Two wheeler sectors receive top awards from automotive media. Dr. Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra Ltd. accepts the CNBC TV18 Overdrive Best UV of the year award for the XYLO. Mr. Anoop Mathur, President, 2 Wheeler Sector, Mahindra & Mahindra Ltd. accepts the NDTV Profit Car & Bike Scooter of the Year Award for the Duro And many more. Name Keshub Mahindra Anand Mahindra Bharat Doshi Pawan Goenka Ruzbeh Irani Pravin Shah Rajan Wadhera

Tata Motors
Brief History Tata Motors was found in 1945 as a locomotives manufacturer, the company manufactured their first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which broke in 1969. In 1991, Tata Motors entered the passenger vehicle market with the launch of the Tata Sierra. In 1998, Tata Motors launched the first fully indigenous Indian passenger car, the Indica. In 2004, Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company. The British premium car maker Jaguar Land Rover was acquired in 2008.

Tata Motors is an Indian multinational automotive manufacturing company. It is a subsidiary of the Tata Group. Tata Motors products include passenger cars, trucks, vans, coaches, buses and military vehicles. Main Products Commercial vehicles Tata Ace Tata Ace Zip Tata Super Ace Tata TL/ Telcoline/ 207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 Tata 1512 Tata 1612/1616 Tata 1618 Tata 1623 Tata 1518C Tata 1613/1615 Tata 2515/2516 Tata Starbus Tata Divo Tata CityRide Tata 3015 Tata 3118 Tata 3516 Tata 4018 Tata 4923 Tata Novus Tata Prima Tata Prima LX Tata Ultra Passenger vehicles Tata Sumo Tata Sumo Grande Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Winger Tatar Magic Tata Nano Tata Xenon XT Tata Aria Tata Venture Tata Iris Land Rover Land Rover Freelander 2 Land Rover Range Rover Evoque Land Rover Discovery 4 Land Rover Range Rover Sport Land Rover Range Rover Jaguar XF XJ L XK

Key Members Post Managing Director Executive Director (Commercial Vehicles) Executive Director (Quality, Vendor Development & Strategic Sourcing) Chief Financial Officer Head, Advanced and Product Engineering President (PCBU) Senior Vice President (Human Resources) Senior Vice President (Corp Finance - Accts & Taxation) Senior Vice President (Latin America Operations) Vice President (Corp Finance and Business Planning) Head Engineering (Comm. Vehicles - ERC) Vice President - Sales (CVBU) Vice President (Govt. Affairs & Collaboration) Chief (Strategic Sourcing) Head (Small Car Project) Company Secretary Project Director (Joint Projects) Vice President (Internal Audit) Head Manufacturing Operations (CVBU) Vice President (Legal) Vice President (Commercial - CVBU) Vice President (Engg. Systems, ERC) Head (Car Plant - PCBU) Awards Tata Motors won the award for the Best Learning Organisations of Asia (2011-12) Tata Motors Most reputed company: Nielsen Report Tata Motors wins the Golden Peacock Award for Excellence in Corporate Governance Tata Motors Lucknow plant wins Greentech Environment SILVER AWARD 2011 And many more. Name Mr Karl Slym Mr R Pisharody Mr S B Borwankar Mr C Ramakrishnan Dr T Leverton Mr Ranjit Yadav Mr Prabir Jha Mr P Y Gurav Mr S Krishnan Mr A A Gajendragadkar Dr A K Jindal Mr Anil Kapur Mr A S Puri Mr B B Parekh Mr Girish Wagh Mr H K Sethna Mr Karl-Heinz Servos Mr N Pinge Mr P Chobe Mr R Bagga Mr R Ramakrishnan Mr S Ravishankar Mr Vikram Sinha

Five key ratios which reflect the financial health of the company
1. Current Ratio
Company Maruti Suzuki India Mahindra & Mahindra Tata Motors Mar 10 Mar 11 Mar 12 0.91 1.47 1.02 1.11 0.86 0.95 0.44 0.53 0.51

Current ratio measures the capabilityof the company to pay short term loans. As the current ratio raises, paying the short term debts becomes easier. If the current ratio is greater than 1.0 then the company has lesser debts to clear and if the current ratio is lower than 1.0 then the company has more debts to clear. From the chart (Current Ratio) in Appendix-I, in the financial year 2009-2010, Mahindra & Mahindra had the highest current ratio (1.11), followed by Maruti Suzuki India (0.91) and Tata Motors (0.44). In the financial year 2010-2011,Maruti Suzuki India had the highest current ratio (1.47), followed by Mahindra & Mahindra (0.86) and Tata Motors (0.53). In the financial year 2011-2012,Maruti Suzuki India had the highest current ratio (1.02), followed by Mahindra & Mahindra (0.95) and Tata Motors (0.51). From this we can see that Maruti Suzuki India is able to clear their short term debts with ease, whereas Mahindra & Mahindra face slight difficulties and Tata Motors is having a major difficulty in clearing their short term debts.

2. Debt Equity Ratio


Company Maruti Suzuki India Mahindra & Mahindra Tata Motors Mar 10 Mar 11 Mar 12 0.07 0.02 0.07 0.37 0.23 0.26 1.12 0.80 0.57

Debt Equity Ratio shows the fraction of debt and equity to finance the assets of the company. If the company uses higher proportion of debt than equity then the company can hold higher profits for the shareholders of the company. Having higher debt than equity, the company is under the risk of separating the earnings between the same numbers of shareholders. Holding back debt benefits companies with tax shield as there is no tax on debt, but the interest amount should be paid on time. From the chart (Debt Equity ratio) in Appendix-I, in the financial year 2009-2010, Maruti Suzuki India has the lowest debt to equity ratio (0.07), followed by Mahindra & Mahindra (0.37) and Tata Motors (1.12). In the financial year 2010-2011, again Maruti Suzuki India has the lowest debt to equity ratio (0.02), followed by Mahindra & Mahindra (0.23) and Tata Motors (0.80). In the financial year 2011-2012, Maruti Suzuki India has the lowest debt to equity ratio (0.07), followed by Mahindra & Mahindra (0.26) and Tata Motors (0.57). Maruti

Suzuki India has consistently maintained a low debt to equity ratio in 3 financial years. Mahindra & Mahindra is having a fluctuating debt to equity ratio. Tata Motors has shown a decline in their debt to equity ratio, which is a good sign for potential shareholders.

3. Inventory Turnover Ratio


Company Maruti Suzuki India Mahindra & Mahindra Tata Motors Mar 10 Mar 11 Mar 12 30.47 33.33 22.80 17.91 15.64 14.99 13.50 13.86 13.37

Inventory turnover ratio shows the number of times a companys stock is sold and replaced over a period. A low turnover ratio mean says the company is experiencing poor sales and there isabundant stock. A high turnover shows strong sales or inefficientpurchases of stock. If the company keeps a very high volume of stock, it is not advisable as it will block potential investment in other sectors. From the chart (Inventory turnover Ratio) in Appendix-I, in the financial year 2009-2010, Maruti Suzuki India has the highest Inventory turnover ratio (30.47), followed by Mahindra & Mahindra (17.91) and Tata Motors (13.50). In the financial year 2010-2011, again Maruti Suzuki India has the highest Inventory turnover ratio (33.33), followed by Mahindra & Mahindra (15.64) and Tata Motors (13.86). In the financial year 2011-2012, Maruti Suzuki India has the highest Inventory turnover ratio (22.80), followed by Mahindra & Mahindra (14.99) and Tata Motors (13.37). From this we can see that Maruti Suzuki India has maintained a high inventory ratio throughout 3 financial years and sold many products. Maruti Suzuki India also has the highest market share in Indian Automobile sector.

4. Debtors Turnover Ratio


Company Maruti Suzuki India Mahindra & Mahindra Tata Motors Mar 10 Mar 11 Mar 12 33.92 42.93 38.84 16.09 17.97 19.05 17.92 19.20 20.42

Debtor turnover ratio shows the number of times the sundry debtors are converted into a form of cash. It shows the how many times the debts are cleared in a year. It measures of receivables from credit sale. Higher the debtor turnover ratio, the more efficient is the management. Lower the debtor turnover ratio, the lesser efficient is the management. From the chart (Debtors Turnover Ratio) in Appendix-I, in the financial year 2009-2010, Maruti Suzuki India has the highest Debtors turnover ratio (33.92), followed by Tata Motors (17.92) and Mahindra & Mahindra (16.09). In the financial year 2010-2011, Maruti Suzuki India has the highest Debtors turnover ratio (42.93), followed by Tata Motors (19.20) and Mahindra & Mahindra (17.97). In the financial year 2011-2012, Maruti Suzuki India has the highest Debtors turnover ratio (33.92), followed by Tata Motors (17.92) and Mahindra & Mahindra (16.09). From this we can say that Maruti Suzuki India has the most efficient management, compared to Mahindra & Mahindra and Tata Motors.

5. Net Profit Margin Ratio


Company Maruti Suzuki India Mahindra & Mahindra Tata Motors Mar 10 Mar 11 Mar 12 8.34 6.13 4.53 11.08 11.14 8.92 6.26 3.74 2.26

The Net Profit Margin Ratio shows the relationship between net profits (after tax) and net sales. If the net profit margin ratio higher, then better is the profitability of the company. Lower the net profit margin, lower is profitability of the company. From the chart (Net Profit Margin Ratio) in Appendix-I, in the financial year 2009-2010, Mahindra & Mahindra has the highest Net profit margin ratio (11.08), followed by Maruti Suzuki India (8.34) and Tata Motors (6.26). In the financial year 2010-2011, Mahindra & Mahindra has the highest Net profit margin ratio (11.14), followed by Maruti Suzuki India (6.13) and Tata Motors (3.74). In the financial year 2011-2012, Mahindra & Mahindra has the highest Net profit margin ratio (8.92), followed by Maruti Suzuki India (4.53) and Tata Motors (2.26). We can see that Mahindra & Mahindra have the highest net profit margin ratio, compared to Maruti Suzuki India and Tata Motors.

Study of Companys Dividend Policy


The Dividend Payout Ratio is dividend, which is paid to stockholders, comparative to the net income of the company. The left amount (after giving dividend) isretained by the company, for growth. Formula:

Maruti Suzuki India Mar-12 Dividend Per Share (Rs) Earnings Per Share (Rs) Dividend Payout Ratio 7.5 56.6 0.133 Mar-11 7.5 79.21 0.095 Mar-10 6 86.45 0.07

In the Financial year 2009-2010, the Dividend per Share was 6 and the Dividend Payout Ratio was 0.007. In the Financial year 2010-2011, the Dividend per Share was 7.5 and the Dividend Payout Ratio was 0.095.In the Financial year 2011-2012, the Dividend per Share was 7.5 and the Dividend Payout Ratio was 0.133. Maruti Suzuki Indias Dividend Per Share had a rise of 1.5 before it became constant at 7.5 for two financial years and the Earnings Per

Share had declined from 86.45 to 56.6. Hence, Dividend Payout Ratio had increased from 0.07 to 0.133.Charts are shown in Appendix-II. Mahindra & Mahindra Mar-12 Dividend Per Share (Rs) Earnings Per Share (Rs) Dividend Payout Ratio 12.5 48.88 0.2557 Mar-11 11.5 45.33 0.2537 Mar-10 9.5 36.89 0.2575

In the Financial year 2009-2010, the Dividend per Share was 9.5 and the Dividend Payout Ratio was 0.2575. In the Financial year 2010-2011, the Dividend per Share was 11.5 and the Dividend Payout Ratio was 0.2537. In the Financial year 2011-2012, the Dividend per Share was 12.5 and the Dividend Payout Ratio was 0.2557. Mahindra & Mahindras dividend per share and earnings per share has increased but the Dividend Payout Ratio was affected with minimum change. Charts are shown in Appendix-II. Tata Motors Mar-12 Dividend Per Share (Rs) Earnings Per Share (Rs) Dividend Payout Ratio 4 3.91 1.023 Mar-11 20 28.55 0.701 Mar-10 15 39.26 0.382

In the Financial year 2009-2010, the Dividend per Share was 15 and the Dividend Payout Ratio was 0.382. In the Financial year 2010-2011, the Dividend per Share was 20 and the Dividend Payout Ratio was 0.701. In the Financial year 2011-2012, the Dividend Per Share was 4 and the Dividend Payout Ratio was 1.023. Tata Motors Dividend Per Share had a rise from 15 to 20 and then declined to 4, but the Earnings Per Share had declined with by a large difference. The Dividend Payout Ratio has increased from 0.382 to 1.023.Charts are shown in Appendix-II.

Study of Companys Cash Flow


The cash flow statement finds the cash that is flowing to and from the company. If a company is steadily making more cash than being used, the company can increase their dividends, buy stock, clear debts or acquire other companies.

Maruti Suzuki India (In Crores) Items Net Profit Before Tax Net Cash From Operating Activities Net Cash Used In/From Investing Activities Net Cash Used In/From Financing Activities Net Decrease/Increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents Mar-12 Mar-11 Mar-10 2146.2 3108.8 3592.5 2229.4 3050.3 2887.4 -2918.3 73.4 -4783.3 616.5 -713.4 55.1 -72.4 2410.3 -1840.8 2508.5 98.2 1939 2436.1 2508.5 98.2

In the financial year of 2009-2010, Opening Cash was 1939Crores and the Net Decrease in Cash was 1840.8Crores. In the financial year of 2010-2011, Opening Cash was 98.2Crores and the Net Increase in Cash was 2410.3Crores. In the financial year of 2011-2012, Opening Cash was 2508.5Crores and the Net Decrease in Cash was 72.4Crores. Maruti Suzuki India also did not experience Negative Opening Balance, but have seen a major decrease in Net Cash Flow of 1840.8Crores which was recovered in the next year by a major increase in the Net Cash Flow of 2410.3Crores.Charts are shown in Appendix-III.

Mahindra & Mahindra (In Crores) Items Net Profit Before Tax Net Cash From Operating Activities Net Cash Used In/From Investing Activities Net Cash Used In/From Financing Activities Net Decrease/Increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents Mar-12 Mar-11 Mar-10 3497.62 3402.13 2756 2734.95 2979.75 2336.49 -1936.54 -3734.99 -1345.44 -306.15 -383.72 -783.87 492.26 -1138.96 207.18 695.97 1753.13 1543.63 1188.23 614.17 1750.81

In the financial year of 2009-2010, Opening Cash was 1543.63Crores and the Net Increase in Cash was 207.18Crores. In the financial year of 2010-2011, Opening Cash was 1753.13Crores and the Net Decrease in Cash was 1138.96Crores.In the financial year of 2011-2012, Opening Cash was 695.97Crores and the Net Increase in Cash was 492.26Crores. Mahindra & Mahindra have not experienced Negative Opening Balance and have managed their investments during last three financial years. Charts are shown in Appendix-III.

Tata Motors (In Crores) Items Net Profit Before Tax Net Cash From Operating Activities Net Cash Used In/From Investing Activities Net Cash Used In/From Financing Activities Net Decrease/Increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents Mar-12 Mar-11 Mar-10 1242.23 1811.82 2240.08 3653.59 1505.56 6586.03 144.72 -2521.88 -11848.3 -4235.59 1648.42 5348.49 -437.28 632.1 86.23 1352.14 720.04 630.04 914.86 1352.14 716.27

In the financial year of 2009-2010, Opening Cash was 630.04 Crores and the Net Increase in Cash was 86.23Crores. In the financial year of 2010-2011, Opening Cash was 720.04Crores and the Net Increase in Cash was 632.1Crores. In the financial year of 2011-2012, Opening Cash was 1352.14Crores and the Net Decrease in Cash was 437.28Crores. We can see that Tata Motors did not have a decline in their Net Cash until the financial year of 2011-2012. Tata Motors used 4235.59Crores in Financing Activities, which is the reason for Net Decrease in Cash of 437.28Crores.Charts are shown in Appendix-III.

Study of Capital Structure of the companies


Maruti Suzuki India (In Crores) Particular Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans Total Liabilities Mar-12 144.5 15,042.90 15,187.40 0 1,078.30 16,265.70 Mar-11 144.5 13,723.00 13,867.50 31.2 278.1 14,176.80 Mar-10 144.5 11,690.60 11,835.10 26.5 794.9 12,656.50

In the financial year 2009-2010, Total Equity (Net Worth) was 11835.1 Crores and the Total Liabilities were 12656.5Crores. In the financial year 2010-2011, Total Equity (Net Worth) was 13867.5 Crores and the Total Liabilities were 14176.8Crores. In the financial year 20112012, Total Equity (Net Worth) was 15187.4 Crores and the Total Liabilities were 16265.7Crores. From this we can see that both the Total Equity (Net Worth) and the Total Liabilities has increased at almost the same pace. Charts are shown in Appendix-IV.

Mahindra & Mahindra (In Crores) Particular Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans Total Liabilities Mar-12 294.52 11,799.26 12,104.69 400.18 2,774.04 15,278.91 Mar-11 327.59 9,974.62 10,313.39 407.23 1,998.06 12,718.68 Mar-10 290.96 7,527.60 7,830.23 602.45 2,277.70 10,710.38

In the financial year 2009-2010, Total Equity (Net Worth) was 7830.23 Crores and the Total Liabilities were 10710.38Crores. In the financial year 2010-2011, Total Equity (Net Worth) was 10313.39 Crores and the Total Liabilities were 12718.68 Crores. In the financial year 2011-2012, Total Equity (Net Worth) was 12104.69 Crores and the Total Liabilities were 15278.91Crores. From this we can see that both the Total Equity (Net Worth) and the Total Liabilities has increased, but the Total Liabilities increased at a slightly faster rate than Total Equity (Net Worth). Charts are shown in Appendix-IV. Tata Motors (In Crores) Particular Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans Total Liabilities Mar-12 634.75 18,709.16 19,367.66 6,915.77 4,095.86 30,379.29 Mar-11 637.71 19,351.40 20,013.30 7,766.05 8,132.70 35,912.05 Mar-10 570.6 14,208.55 14,803.78 7,742.60 8,883.31 31,429.69

In the financial year 2009-2010, Total Equity (Net Worth) was 14803.78 Crores and the Total Liabilities were 31429.69Crores. In the financial year 2010-2011, Total Equity (Net Worth) was 20013.3 Crores and the Total Liabilities were 35912.05 Crores. In the financial year 2011-2012, Total Equity (Net Worth) was 19367.66 Crores and the Total Liabilities were 30379.29Crores. From this we can see that both the Total Equity (Net Worth) and the Total Liabilities have increased, but the gap between Total Liabilities and Total Equity (Net Worth) is too large. Charts are shown in Appendix-IV.

Non-Financial Indicators

1. Nov 09, 2011 October car sales suffer biggest fall in a decade - Car sales in India fell 23.8% in October, the biggest monthly percentage decline since December 2000, an industry body said on Wednesday.

Mahindra & Mahindra had a drop in their share price (Closing price) from Rs.813 (9th November, 2011) to Rs.709.06 (22nd November, 2011).Maruti Suzuki India had a drop in their share price (Closing price) from Rs.1080.15 (9th November, 2011) to Rs.959.85 (22nd November, 2011).Tata Motors had a drop in their share price (Closing price) from Rs.184.7 (9th November, 2011) to Rs.161.45 (21st November, 2011). We can see that Maruti Suzuki India and Mahindra & Mahindra were affected the most by this news of major drop in sales in October and Tata Motors was least affected amongst the three companies. The fall in sales took place due to increase in the interest rate. The customers who purchase cars by taking a loan from the financial institutes, found the landing cost of the car to be increased and decided to wait for the interest rates to cool down.

2. Jul 22, 2011 Political rivalry makes Nano project at Singur suffer: TML - Tata Motors today claimed before the Calcutta High Court that its Nano project suffered due to rivalry between two political parties in West Bengal and denied that it had abandoned Singur.

Tata Motors had a drop in their share price (Closing price) from Rs.199.37 (22nd July, 2011) to Rs.139.84 (26th August, 2011). After Mamta Banerjee (Chief Minister, West Bengal) cased a file against Tata Motors in Calcutta High Court, the share price of Tata Motors experienced a slip.

3. Mar 15, 2011 Mahindra & Mahindra completes acquisition of majority stake in SsangYong Motor Company - Mahindra & Mahindra completes acquisition of majority stake in SsangYong Motor Company.

Mahindra & Mahindra had an incline in their share price (Closing price) from Rs.644.35 (15th March, 2011) to Rs.710.05 (30th March, 2011). The news of SsangYong being acquired by Mahindra & Mahindra was in the market since February, 2011. On 15th March, 2011 Mahindra & Mahindra had completed the acquisition of 70% stake in SsangYong which boosted the value of Mahindra & Mahindra.

Reflection
This assignment helped me in understanding the concepts of Corporate Finance with personal experience. I have learned to realize the financial health of the company with Ratios. I have understood the importance of non-financial news, which can bring a major affect on the companys share price in different ways. I can study the capital structure and the cash flow of the company and find the current situation of the company. From this assignment I have understood the value of dividend policy, which shows how the company treats their shareholders. There were minimum problems faced during the assignment. The main problem faced was to trace the non-financial indicators, as there were lot of news in market which could bring a change in the companys share price. Yet, I had overcome that problem by analyzing the news which had brought a major change in the share price of the company. I have a few ideas on how differently I would like to do this assignment. Such as, in the questions where we had to study the ratios, cash flows, dividends and capital structure to find the negatives and positive. I would prefer finding the reason for the change in the same.

Bibliography History of Maruti Suzuki. (n.d.). Retrieved October 28, 2012, from http://www.marutisuzuki.com/about-us.aspx Key Financial Ratios - Mahindra and Mahindra . (n.d.). Retrieved November 1, 2012, from http://www.moneycontrol.com/financials/mahindramahindra/ratios/MM#MM Key Financial Ratios - Maruti Suzuki India . (n.d.). Retrieved November 1, 2012, from http://www.moneycontrol.com/financials/marutisuzukiindia/ratios/MS24#MS24 Key Financial Ratios - Tata Motors . (n.d.). Retrieved November 1, 2012, from http://www.moneycontrol.com/financials/tatamotors/ratios/TM03#TM03 Mahindra & Mahindra completes acquisition of majority stake in SsangYong Motor Company. (n.d.). Retrieved November 2, 2012, from http://www.moneycontrol.com/news/business/mahindramahindra-completesacquisitionmajority-stakessangyong-motor-company_529627.html Mahindra Automotive. (n.d.). Retrieved October 28, 2012, from http://www.mahindra.com/What-We-do/Automotive/Products Mahindra Rise. (n.d.). Retrieved October 28, 2012, from http://www.mahindra.com/ October car sales suffer biggest fall in a decade. (n.d.). Retrieved November 2, 2012, from http://www.moneycontrol.com/news/business/october-car-sales-suffer-biggest-falladecade_613960.html Our Cars in India. (n.d.). Retrieved October 28, 2012, from http://www.marutisuzuki.com/showroom.aspx Our Leadership. (n.d.). Retrieved October 28, 2012, from http://www.mahindra.com/Who-We-Are/Our-Leadership Political rivalry makes Nano project at Singur suffer: TML. (n.d.). Retrieved November 2, 2012, from http://www.moneycontrol.com/news/business/political-rivalry-makes-nanoproject-at-singur-suffer-tml_567780.html Press releases Maruti Suzuki. (n.d.). Retrieved October 28, 2012, from http://www.marutisuzuki.com/press-releases.aspx Tata Motors: Know Us: Company Profile . (n.d.). Retrieved October 28, 2012, from http://tatamotors.com/know-us/company-profile.php Tata Motors: Media: Awards. (n.d.). Retrieved October 28, 2012, from http://tatamotors.com/media/awards.php

APPENDIX-I

Current Ratio
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Mar 10 Mar 11 Mar 12 Maruti Suzuki India Mahindra and Mahindra Tata Motors

Debt Equity Ratio


1.2 1 0.8 Maruti Suzuki India 0.6 0.4 0.2 0 Mar 10 Mar 11 Mar 12 Mahindra and Mahindra Tata Motors

Inventory Turnover Ratio


35 30 25 20 15 10 5 0 Mar 10 Mar 11 Mar 12 Maruti Suzuki India Mahindra and Mahindra Tata Motors

Debtors Turnover Ratio


50 45 40 35 30 25 20 15 10 5 0 Mar 10 Mar 11 Mar 12

Maruti Suzuki India Mahindra and Mahindra Tata Motors

Net Profit Margin Ratio


12 10 8 Maruti Suzuki India 6 4 2 0 Mar 10 Mar 11 Mar 12 Mahindra and Mahindra Tata Motors

APPENDIX-II

Mahindra & Mahindra

Maruti Suzuki India

Dividend Payout Ratio


0.258 0.257 0.256 0.255 0.254 0.253 0.252 0.251 Mar-12 Mar-11 Mar-10 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0

Dividend Payout Ratio

Mar-12 Mar-11 Mar-10

Tata Motors

Dividend Payout Ratio


1.2 1 0.8 0.6 0.4 0.2 0 Mar-12 Mar-11 Mar-10

APPENDIX-III

Mahindra & Mahindra

Maruti Suzuki India

Net Decrease/Increase In Cash and Cash Equivalents


600 400 200 0 -200 -400 -600 -800 -1000 -1200 -1400 Mar-12 Mar-11 Mar-10

Net Decrease/Increase In Cash and Cash Equivalents


2500 2000 1500 1000 500 0 -500 -1000 -1500 -2000 Mar-12 Mar-11 Mar-10

Tata Motors

Net Decrease/Increase In Cash and Cash Equivalents


800 600 400 200 0 -200 -400 -600 Mar-12 Mar-11 Mar-10

APPENDIX-IV

Mahindra & Mahindra

Capital Structure
18,000.00 16,000.00 14,000.00 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 0.00 Net Worth TOTAL LIABILITIES

Mar-12 Mar-11 Mar-10

Maruti Suzuki India

Capital Structure
18,000.00 16,000.00 14,000.00 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 0.00 Net Worth TOTAL LIABILITIES

Mar-12 Mar-11 Mar-10

Tata Motors

Capital Structure
40,000.00 35,000.00 30,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 Net Worth TOTAL LIABILITIES

Mar-12 Mar-11 Mar-10

APPENDIX-V

Maruti Suzuki India (9th November to 22nd November)

Mahindra & Mahindra (9th November to 22nd November)

Tata Motors (9th November to 22nd November)

Tata Motors (22nd July to 26thAugust)

Mahindra & Mahindra (15th March to 30th March)

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