A

Summer Internship Project Report

On

“A STUDY OF FINANCIAL PERFORMANCE ANALYSIS OF BAJAJ AUTO”

Submitted To: -817 (Institute Code)

Narandas Jethalal Sonecha Management & Technical Institute,

Chanduvav (Veraval)

In Partial Fulfillment of The Award for The Degree Of

Master Of Business Administration

Under

Gujarat Technology University

Under The Guidance Of

Miss PINAL TANK

Submitted By

Jethva Akash

Enrollment No.: 238170592044

(MBA Sem-3)

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 DECLARATION

I AM JETHVA AKASH here-by declare that the report for summer training project entitled “A study on
Financial Performance analysis at Bajaj auto, orange Automotive Pvt Ltd (Veraval)” is a result of my own
work and my indebtedness to other work publication, references if any, have been duly acknowledged.

Enrollment No. Name Signature

238170592044 JETHVA AKASH

Place : Chanduvav (Veraval)

Date :

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 CERTIFICATE OF EXAMINER

This is to certify that the project work embodied in this report entitled “A STUDY OF FINANCIAL
PERFORMANCE ANALYSIS OF BAJAJ AUTO” at Bajaj auto orange was carried out by Jethva Akash
(238170592044) of Narandas Jethalal Sonecha Management & Technical Institute (code : 817)

The report is approved / not approved

This report is for the partial fulfilment of the requirement of the award of the degree of Master of Business
Administration offered by Gujarat Technological University.

(Examiner’s Sign)

Institute Name : NJSMTI

Institute Code : 817

Date:

Place:

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Institute certificate

4
Company certificate

5
Plagiarism report

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 PREFACE

Knowledge is the key treasure but practice is the key to it.

A practical study project report is an integral part of the MBA programmed. The main objective of project
report is to enhance the skill of researcher and gain valuable knowledge of management skill that will be
useful in the future career building.

A practical study project report is one the highly effective means of the learning and acquiring knowledge. It
generates a concerted effort by students to acquire in depth knowledge on subject and present the same in
systematic manner.

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 ACKNOWLEDGEMENT

 There is a great value of expertise knowledge. Only one student is not able to complete whole
research. There Is always requirement of some senior’s guidance. I also go tot too much support for
this research study.
 First of all, I would like to thank my guide miss. PINAL TANK for supporting me any time during
the training period. I am also too much thankful for giving me permission to take training in the
Bajaj auto, orange automotive Pvt ltd (Veraval)
 There is huge support of my friends, and all staff member of Bajaj auto showroom and faculties of
my institute in completion of this project. Without their support it is not possible to complete this
research.
 I would like to give heartily thanks to GTU. It has given me an opportunity to learn something
practical
 I would like to thank all those who helps me in making this project complete and successful.

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 EXECUTIVE SUMMARY

The automotive industry began in the 1860s with hundreds of manufacturers pioneering the horseless
carriage. Early car manufacturing involved manual assembly by a human worker. The process evolved from
engineers working on a stationary car, to a conveyor belt system where the car passed through multiple
stations of more specialized engineers. Starting in the 1960s, robotic equipment was introduced to the
process, and most cars are now mainly assembled by automated machinery.

For many decades, the United States led the world in total automobile production, with the U.S. Big
Three General Motors, Ford Motor Company, and Chrysler being the world's three largest auto
manufacturers for a time, and G.M. and Ford remaining the two largest until the mid-2000s. In 1929, before
the Great Depression, the world had 32,028,500 automobiles in use, of which the U.S. automobile
enterprises produced more than 90%. At that time, the U.S. had one car per 4.87 persons. After 1945, the
U.S. produced around three-quarters of the world's auto production. In 1980, the U.S. was overtaken
by Japan and then became a world leader again in 1994. Japan narrowly passed the U.S. in production
during 2006 and 2007, and in 2008 also China, which in 2009 took the top spot (from Japan) with 13.8
million units, although the U.S. surpassed Japan in 2011, to become the second-largest automobile industry.
In 2023, China had for the first time in history more than 30 million produced vehicles a year, after reaching
29 million for the first time in 2017 and 28 million the year before. From 1970 (140 models) over 1998 (260
models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.

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 SUBJECT INDEX

[Link] PARTICULARS PAGENO:

Part -1 General Information
1. 1.1 Introduction to AUTOMOBILE industry
Part -2 Company Profile /overview
2. 2.1 Company profile
2.2 Introduction
2.3 Chief executive officer
2.4 Vision Mission &Goal of BAJAJ AUTO
2.5 Competitors of BAJAJ AUTO
2.5 Products of BAJAJ
2.6BAJAJ ‘s Global Reach
2.7 SWOT ANALYSIS

Part -3 Introduction of the study

3. 3.1 Background of FINANCIAL PERFORMANCE
ANALYSIS
3.2 TYPES OF FINANCIAL STATEMENTS
Part -4 Research Methodology
4 4.1 Introduction to Research
4.2 Need for Study
4.3 Objective of The Study
4.4 Limitations of The Study
4.5 Literature Review
4.6 Types of Research
- Collection of data
- Types Of data
- Sources of data Collection

5 Analysis &Interpretation of Data

6. Findings
7. Suggestions
8. Conclusion
9. Bibliography
10. Annexure

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Part -1 General Information

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 1.1 Introduction to AUTOMOBILE industry

(Ministry of Heavy Industries)

India is one of the world’s largest tractors & two-wheeler manufacturer

India aims to double its auto industry size to ₹15 lakh crores by 2024

The automotive industry in India is one of the

main pillars of the economy. With strong
backward and forward linkages, it is a key driver
of growth. Liberalization and conscious policy
interventions over the past few years created a
vibrant, competitive market, and brought several
new players, resulting in capacity expansion of
the automobile industry and generation of huge
employment.

The contribution of this sector to the National

GDP has risen to about 7.1% now from 2.77% in 1992-93. It provides direct and indirect employment to
over 19 million people.

In the automobile market in India, Two-wheelers and passenger cars accounted for 77% and 18% market
share respectively during the year 2021-22. Passenger car sales are dominated by small and midsized cars.
Export of the total number of automobiles increased from 4,134,047 in 2020-21 to 5,617,246 in 2021-22,
registering a positive growth of 35.9%

India aims to double its auto industry size to Rs. 15 lakh crores by end of year 2024. There has been an FDI
inflow of $33.77 billion in the industry from April 2000 till September 2022 which is around 5.48% of the
total FDI inflows in India during the same period.

7.1% Share 37 million 4.7% Share

40% Share in in India's
in India's Employment
global R&D
GDP generated exports

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The Indian Automotive industry has made great strides over the past two decades, capturing the eye-balls at
a global level and is considered as a contender for a top-table position. In terms of global rankings in
manufacturing output, it is second largest in two-wheelers, seventh largest in commercial vehicles, sixth
largest in passenger vehicles and the largest in tractors. Over the past ten years, India has emerged as one of
the most preferred locations in the world for manufacturing high-quality automotive components and
vehicles of all kinds, narrowing its gap over several established locations in the process.

Over the next decade, the automotive industry is likely to see some significant transformations at a global
level. Principal transformations being the shift of growth in demand for automobiles from developed nations
to developing nations (mainly BRICS); a dramatic increase in the share of electronics in automobiles,
making them a “computer on wheels and connected to the Internet”; a relentless pursuit of economies of
scale and scope in design and engineering of automobiles and components, while also pursuing low-cost
manufacturing destinations.

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Part -2 Company Profile /overview

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 2.1 Company profile

BAJAJ AUTO LIMITED

Bajaj Auto limited is one of the largest two-wheeler manufacturing companies in India apart from producing
two wheelers they also manufacture three wheelers. The company had started Way back in 1945. Initially it
used to import the two wheelers from outside, but from 1959 it Started manufacturing of two wheelers in the
country. By the year 1970 Bajaj Auto had rolled Out their 100,000th vehicle. Bajaj scooters and motor
cycles have become an integral part of The Indian milieu and over the years have come to represent the
aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan
to produce the Latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator
has Emerged straight out of the drawing board of Kawasaki heavy industries. The core brand values Of
Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and Transparency. Bajaj Auto has three
manufacturing units in the country at Akurdi, Waluj and Chakan in Maharashtra, western India, which
produced 2,314,787 vehicles in 2005-06. The sales are Backed by a network of after sales service and
maintenance work shops all over the country. Bajaj Auto has products which cater to every segment of the
Indian two-wheeler market Bajaj CT 100 Dix offers a great value for money at the entry level. Similarly,
Bajaj Discover 125 Offers the consumer a great performance without making a big hole in the pocket.
COMPANY’S HISTORY

Bajaj Auto is a major Indian automobile manufacturer. It is Indian’s 4th largest two and three- wheeler
maker. It is based in Pune, Maharashtra, with plants in Waluj near Auranga Akurdin and Chakan, near Pune.
Bajaj Auto makes motor scooters, motorcycles and the auto rickshaw. Bajaj Auto came into existence on
November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported
two- and three-wheelers in India. In 1959, it Obtained license from the Government of India to manufacture
two-and three-wheelers and it Went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it
managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at
Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial Year. In
1995, it rolled out its ten millionth vehicles and produced and sold 1 million vehicles in a year.

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LOGO:

Rebranding from Hamara Bajaj to Distinctly Ahead

BAJAJ AUTO LTD.

Earlier Bajaj used “B” logo in a hexagon that was

known for” Hamara Bajaj” was replaced with a
more attracting, stylish, vibrant, dynamic look
moving from the lower caps to upper caps which
symbolize the rejuvenated Bajaj auto ltd.

The change in the logo was the ongoing change Bajaj has transformed its facilities like manufacturing
process, service and distribution network, created its benchmark in research and development activities.
When customer has changed in terms of quality and style then change in the identity became the necessary
change for the Bajaj to invite the paradigm shift in the consumer’s perception regarding the company.

Bajaj pulsar joined hands with MTV India in the year 2009 in order to launch pulsar MTV stunt mania
which was India’s first ever bike stunt reality show. The main intention of the Bajaj to target the youth of the
India and MTV being the youth centric for the excellent choice.

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 2.2 INTRODUCTION

Bajaj auto ltd is one of the foremost

automobile companies in the automobile
industry in India. It produced more two-
wheelers and three-wheelers in a year
and also had tremendous goodwill
among the Customers. And another
investor’s point of view it had a strong
and positive mindset. And therefore, a
new study about its financial
performance is necessary to attract new
investors and easy to make Additional on Bajaj Auto ltd by existing investors. The present study will be
focused on the analysis of the financial performance of Bajaj auto ltd from 2020-2022. In this regard
liquidity ratio, Profitability Ratio, Solvency ratio, Turnover ratio, and Earning ratio were used in the study
for accurate results and to Make a decision based upon these results.

Keywords: Automobile Industry, Investment, Financial Performance, Bajaj Auto and Ratio Analysis.

The contribution of the automobile industry to Indian economic development is very high. In India’s GDP,
automobile industry involvement is prominent. And also, India is a developing country and Its nature and
environment are more suitable for starting a new business. So, that year by year the Number of
manufacturing and other industries increased. Bajaj Auto Limited, Maruthi Suzuki, Hyundai, Tata Motors,
Mahindra and Mahindra, Honda Motor Company, and Ashok Leyland are the leading Automobile
companies doing automobile business in India. Our study is conducted on Bajaj Auto Limited Over a
century ago; a philanthropist instinctively took the unprecedented step of using business to serve society. He
was the founder of the Bajaj Group, Mr. Jamnalal Bajaj. He strongly believed that, „common good was
more important than individual gain‟. His philosophy which has stood the test of time, was successfully
taken forward by his sons Mr. Kamalnayan Bajaj and Mr. Ramkrishna Bajaj and is now spearheaded by Mr.
Rahul Bajaj. This has taken the group to higher levels of success and respect.

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The Group now stands tall in the Corporate World. The Group has a market capitalization of about Rs.
8,55,000 crores (about US$ 105 billion) with 40 Group Companies and approximately 36,000 employees. It
offers an extensive range of products and services including motorised two and three wheelers, home
appliances, electric lamps, wind energy, special alloys and stainless steel, cranes, material handling
equipment, travel, general and life insurance and investment, consumer finance and asset management.

For society however, Bajaj is more than a corporate identity. It is a catalyst for social empowerment. It is the
reason behind the smile that lights up a million faces. Its goodwill resonates in the two simple words that
live in the collective consciousness of Indians – Hamara Bajaj. Bajaj Auto Ltd is one of the leading two &
three-wheeler manufacturers in India. The company is well known for their R&D, product development,
process engineering and low-cost manufacturing skills. The company is the largest exported of two and
three- wheelers in the country with exports forming 18% of its total sales. The company has two
subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia.

The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd
(the holding company) with the name Bajaj Investment & Holding Ltd. The company received the certificate
of commencement of business on May 7, 2007. The holding company operated in the segments, such as
automotive, insurance and investment, and others. Considering the growth opportunities in the auto, wind-
energy, insurance and finance sectors, the holding company de-merged their activities into three separate
entities, each of which can focus on their core businesses and strengthen competencies.

The auto business of the holding company along with all assets and liabilities pertaining thereto including
investments in PT Bajaj Auto Indonesia and in a few vendors, companies transferred to Bajaj Investment &
Holding Ltd. In addition, a total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj
Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were renamed as
Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of business on March 31, 2007.

In April 9, 2007, the company inaugurated their green field plant at Pant Nagar in Uttarakhand. In the first
year of operations, the plant produced over 275,000 vehicles. The company’s vehicle assembly plant at
Akurdi was shut down from September 3, 2007 due to higher cost of production.

In November 2007, Bajaj Auto International Holdings BV, a wholly owned subsidiary company acquired
14.51% equity stake in KTM Power Sports AG of Austria, Europe’s second largest sport motorcycle
manufacturer for Rs 345 crore.

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During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler Direct Injected
auto rickshaw. The Chakan plant completed the cumulative production of over 2 million Pulsar.

During the year 2009-10, the company expanded the production capacity of Motorised Two & Three
Wheelers by 300,000 Nos to 4,260,000 Nos. The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar
150 UG, Pulsar 135 LS and Discover DTS-Si in the market.

During the year 2010-11, the company expanded the production capacity of Motorised Two & Three
Wheelers by 780,000 Nos to 5,040,000 Nos. The company launched Avenger 220 DTS-1, KTM Duke 125,
Discover 150 and Discover 125 in the market.

The company plans to maintain the capacity of two and three-wheelers at the current level of 5,040,000
numbers per annum during the year ending 31 March 2012. The 4-wheel vehicle development work is under
progress and commercial launch of the first product from this platform is scheduled for [Link] 2012, Bajaj
Auto tied up with Japan’s Kawasaki in Indonesia. In 2013, the Company has introduced another variant of
premium motorcycles under the Bajaj-KTM joint venture namely Duke 390cc for a price of Rs 1.83 lakh.
The company also received CII Design Excellence Award

In 2014, Bajaj Auto bagged order in Sri Lanka -People’s Choice Bike of the Year – CNBC TV18 Overdrive
Awards. The Company has also received Bike of the Year BBC Top gear Awards.

In 2015, Bajaj Auto has introduced the all-new Platina electric start 100 cc bike to the long- distance
commuter

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of
industries, spanning automobiles (two wheelers manufacturer and three wheelers manufacturer), home
appliances, lighting, iron and steel, insurance, travel and finance. The group’s flagship company, Bajaj Auto,
is ranked as the world’s fourth largest three and two-wheeler manufacturer and the Bajaj brand is well-
known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded
in 1926, at the height of India's movement for independence from the British, the group has an illustrious
history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of
the group today, are often traced back to its birth during those days of relentless devotion to a common
cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact,
Gandhiji had adopted him as his son. This close relationship

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and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to
spend on his newly launched business venture. We are celebrating 125th Birth anniversary of Shri. Jamnalal
Bajaj on 4th of November 2014.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji
and it was only after Independence in 1947, that he was able to give his full attention to the business.
Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing
activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his
leadership, the turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR.
120 billion, its product portfolio has expanded and the brand has found a global market. He is one of India’s
most distinguished business leaders, bike manufacturer India and internationally respected for his business
acumen and entrepreneurial spirit

Bajaj Auto Limited is an Indian automobile manufacturing company. It manufactures two and three-wheeler
machines. It manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto Limited is a part
of Bajaj Group of industries. The Bajaj Auto was founded by Jamnalal Bajaj in Rajasthan in the year 1940s.
It has its plants in Mumbai, Pune, Chakan, Waluj, Pant Nagar in Uttarakhand. Its oldest plant was in
Makurdi (Pune) which is known transformed into the R&D centre.

Bajaj Auto is the world’s 6th largest motorcycles manufacturing company and the 2nd largest in India. It is
the world largest three-wheeler manufacturer. It gave a start to the manufacturing of scooters from getting
license from Vespa. The most popular scooter by Bajaj was the Chetak scooter. This scooter had a waiting
period of about a year, and its production lasted for about 34 years. By around 1990‟s Bajaj Auto started
focusing more on motorcycles since the market trend was shifting. It also came as a surprise to all when it
announced that the company will withdraw from scooter manufacturing since the scooter had created the
goodwill for Bajaj Auto Limited. Saffire was the last scooter produced by Bajaj. It then mainly focused on
motorcycles and Bajaj Boxer and Bajaj discover were its commuter brand in the country and the sales of this
motorcycles raised very fast. Then it came with Bajaj Avenger which still remains the most Affordable
cruiser in India. But it was mainly because of Bajaj Pulsar the name of Bajaj came into existence and
cemented its position in the motorcycle segment in India. It was positioned as the performance bike-maker
in Indian market. The main feature of the bikes where because of its value for money without compromising
on its features, power, technology. The pulsar range of Bajaj motorcycles has grown a lot and at a steady
pace with many iterations and a 400cc Pulsar version in a power cruiser form is launched in the market in
August,2016 in the form of Bajaj Pulsar CS400.

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Bajaj currently sells its products through 2 formats, 1. Bajaj showrooms which sells all Bajaj bikes.2. Pro-
biking showrooms which sell bikes of KTM and Kawasaki.

On May 2015, its market capitalization was ₹640 Billion (US $9.9 Billion), making it the India’s 23rd
largest publicly traded company by market value. The Forbes Global 2000 list for the year 2012 ranked
Bajaj Auto at 1,416 Rank.

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 2.3 Chief executive officer

FOUNDER AND BOARD OF DIRECTOTS:

Founder’s

Jamaal Bajaj (1889–1942)

Founded by the freedom fighter, philanthropist and close confidante of Mahatma Gandhi Jamnalal Bajaj, the
Bajaj Group is one of the most respected and renowned business houses of India. Started around eighty
years back with a sugar factory in Lakhimpur Kheri of Uttar Pradesh, the group has since diversified into a
wide variety of business areas. The group’s first sugar plant was one among only 30 sugar mills that
pioneered the establishment of the sugar industry in India. Today, Bajaj Hindustan Sugar Ltd is Asia’s
Number One Sugar company and among the top four globally. In addition, the Group includes Bajaj Corp
Ltd, a recently setup, Bajaj Energy Limited, Lalitpur Power Generation Company Ltd. And Bajaj
Infrastructure Development Co. Ltd. The Bajaj Group is a leading presence with diversified interest in the
sugar and growing Infrastructure sector including Power, Coal mining and Real Estate; FMCG, and Ethanol.
Bajaj Hindustan Sugar Limited, the Group’s flagship company, was set up in November 1931.

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 Kamalnayan Bajaj (1915–1972)

Kamalnayan Bajaj the eldest son of Jamnalal Bajaj, after completing his education from University of
Cambridge, England, returned to India to assist his father both in business and in social service. Kamalnayan
Bajaj also a man of strict principles, earmarked a large portion of the income from his family business for
public causes and social service programs. He always had a sense of a larger social mission, transcending
the dictates of business and the bottom line. Every new business venture that Kamalnayan got into, testified
to his business acumen. With foresight and a spirit of zestful enterprise, Kamalnayan acquired ailing
industrial units and then turned them around. He went on to expand the business by branching into
manufacture of scooter, three-wheeler, cement, alloy casting and electricals. In 1954, Kamalnayan took over
active management of the Bajaj Group companies.

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 Ramakrishna Bajaj (1924–1994)

Ramkrishna Bajaj, the younger son of Jamnalal, took over after the death of his elder brother Kamalnayan
Bajaj in 1972. In addition to shouldering business responsibilities, Ramkrishna’s energies were largely
directed towards the social service and social welfare programs of the Bajaj Group. He was of the firm
conviction that he could make an impactful and meaningful contribution to the community through social
work. Ramakrishna had a flair and panache for working with youth. He was elected as the Chairman of
World Assembly for Youth (India) in 1961. He also held the office of the Managing Trustee of the Indian
Youth Centres Trust, which conceived and created the Vishwa Yuval Kendra in 1968, a youth development
organization.

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 Rahul Bajaj (1938 – 2022)

Rahul Bajaj, the chairman and managing director of the Bajaj group is the grandson of Jamnalal Bajaj. He
completed his schooling from Cathedral, a school in Bombay. Then he further pursued his studies Stephen’s
C College, Delhi, Government Law College, Mumbai and Harvard University, USA. He took over control of
the Bajaj Group in 1965 and successfully established one of India’s largest conglomerates.

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 Rajiv Bajaj (2022 – present)

one of the richest men in Asia, is leading the Bajaj Group after Rahul Bajaj’s death. In 2021, he took over as
the chairman of the group. He is also a board member of Bajaj AUTH

which makes many popular two-wheelers. That’s not all, Niraj Bajaj had been on the board of directors at
Bajaj Allianz and General Insurance

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 2.4 Vision Mission & Goal of BAJAJ AUTO

Mission:

To create value by enabling innovation, creativity, integrity and service to community in everything we do.

Achievement:

Born in India. Loved by the World

The World’s Favourite Indian

With more than 18 million motorcycles sold in over 70 countries, the Bajaj brand is truly „The World’s
Favourite Indian‟. It is India’s No.1 motorcycle exporter with two out of three bikes sold internationally
carrying a Bajaj badge. The company is also the world’s largest manufacturer of three-wheelers. Bajaj Auto
is the first two-wheeler and three-wheeler company in the world to have reached a market

capitalisation of INR one trillion and continues to be the world’s most valuable two and three-wheeler
company.

Bajaj is loved not only in India but 70 countries around the world.

From motorcycles to three-wheelers and now quadricycles, from Mumbai Mexto ty and Bogota to
Bengaluru, there’s a Bajaj for everyone

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 2.5 Competitors Of BAJAJ AUTO

Here is a list of the top 10 auto rickshaw companies in India in 2024, that 9 companies are competitors of
Bajaj auto. along with their number of units sold and market share for Financial Year 2023.

3- wheeler Companies in India Units Sold from January to Market Share for
October 2023 October 2023
Bajaj Auto 2,53,012 36.3%

Piaggio 64,808 7.9%

Mahindra 30,987 5.6%

YC Electric 33,143 3.9%

Saera Electric Auto 22,259 3%

Dilli Electric Auto (City Life) 16,910 2.1%

Atul Auto 20,712 2.1%

TVS Auto 14,197 1.5%

Mini Metro EV L.L.P 12,174 1.3%

J.S. Auto 9,439 1.04%

2.6 Products Of BAJAJ

Bajaj Auto, one of India's leading two-wheeler and three-wheeler manufacturers, offers a range of products
including motorcycles, scooters, and three-wheelers. Some of their notable products include:

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 MOTORCYCLES

1. Pulsar Series

- Pulsar 125
- Pulsar 150
- Pulsar NS200
- Pulsar RS200

2. Dominar Series

- Dominar 250
- Dominar 400

3. Avenger Series

- Avenger Street 160

- Avenger Cruise 220

4. CT Series

- CT100
- CT110

5. Platina Series

- Platina 100
- Platina 110 H-Gear

THREE-WHEELERS

1. Passenger Carriers

- RE Compact

- RE Maxima

2. Cargo Carriers

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 - Maxima C

- Maxima Z

ELECTRIC VEHICLES

Bajaj has also ventured into the electric vehicle segment with the *Chetak Electric Scooter*.

These are some of the prominent products from Bajaj Auto's current lineup.

2.6 BAJAJ ‘s Global Reach

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 2.9 SWOT ANALYSIS

A SWOT analysis of the automobile industry involves examining its strengths, weaknesses, opportunities,
and threats:

Strengths

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1. Established Brand Reputation: Many automobile companies have long-standing brand recognition and
loyalty.

2. Technological Innovation: Advancements in electric vehicles (EVs), autonomous driving, and connected
cars.

3. Global Market Reach: Extensive international presence and diversified markets.

4. Economies of Scale: Large-scale production capabilities reduce per-unit costs.

5. Strong Supply Chain: Well-established supplier networks and logistics.

Weaknesses

1. High Capital Investment: Significant investment required for R&D, manufacturing plants, and new
technology.

2. Environmental Impact: Negative perception due to pollution and resource consumption.

3. Complex Regulations: Strict emission standards and safety regulations in various regions.

4. High Operational Costs: Rising costs of labor, materials, and energy.

5. Product Recalls: Potential for costly recalls due to manufacturing defects.

Opportunities

1. Growth of Electric Vehicles (EVs): Increasing demand for eco-friendly and sustainable transportation.

2. Technological Advancements: Opportunities in AI, IoT, and advanced manufacturing processes.

3. Emerging Markets: Expanding into developing countries with growing middle-class populations.

4. Mobility Services: Growth of car-sharing, ride-hailing, and subscription-based models.

5. Government Incentives: Subsidies and tax benefits for green vehicles and infrastructure development.

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 Threats

1. Economic Downturns: Sensitivity to global economic fluctuations affecting consumer spending.

2. Intense Competition: High competition from both traditional automakers and new entrants (e.g., Tesla,
NIO).

3. Supply Chain Disruptions: Vulnerability to disruptions from geopolitical issues, pandemics, and natural
disasters.

4. Regulatory Changes: Uncertainty due to changing environmental and safety regulations.

5. Cybersecurity Risks: Increased vulnerability to cyber-attacks with the rise of connected and autonomous
vehicles.

This analysis provides a comprehensive overview of the current landscape and strategic considerations for
the automobile industry.

Part -3 Introduction of the study

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3.1 Background of FINANCIAL PERFORMANCE ANALYSIS

Here is a detailed explanation of each tool used for data analysis:

1. Ratio Analysis

Ratio analysis involves evaluating the financial performance of a company by calculating and
interpreting various financial ratios. These ratios provide insights into different aspects of the
company's financial health. Key types of financial ratios include:

- Liquidity Ratios: Measure a company's ability to meet short-term obligations (e.g., Current
Ratio, Quick Ratio).

- Profitability Ratios: Assess a company's ability to generate profit relative to revenue, assets,
or equity (e.g., Net Profit Margin, Return on Assets, Return on Equity).

- Leverage Ratios: Evaluate the extent of a company's debt relative to its equity or assets
(e.g., Debt to Equity Ratio, Interest Coverage Ratio).

- Efficiency Ratios: Indicate how effectively a company uses its assets and manages its
operations (e.g., Inventory Turnover, Asset Turnover).

2. Mean

The mean, or average, is a measure of central tendency that sums all the values in a dataset
and divides by the number of values. It is used to find the central point of a dataset.

3. Standard Deviation

Standard deviation measures the amount of variation or dispersion in a set of values. A low
standard deviation indicates that values tend to be close to the mean, while a high standard
deviation indicates that values are spread out over a wider range.

34
 4. Coefficient of Variation (CV)

The coefficient of variation is a standardized measure of dispersion of a probability

distribution or frequency distribution. It is often used to compare the degree of variation from
one data series to another, even if the means are drastically different.

5. Trend Line

A trend line is a line drawn on a chart that represents the general direction in which data
points are moving over a period of time. It helps in identifying patterns and making
predictions. There are different types of trend lines:

- Linear Trend Line: Shows a straight-line relationship in the data.

- Exponential Trend Line: Fits data that rises or falls at increasingly higher rates.

- Logarithmic Trend Line: Useful for data that increases or decreases quickly and then levels
out.

- Polynomial Trend Line: Fits data with fluctuations; the degree of the polynomial indicates
the number of bends in the trend line.

- Moving Average Trend Line: Smooths out fluctuations in data to show the trend more
clearly.

35
 3.2 TYPES OF FINANCIAL STATEMENTS

Financial statements are formal records of the financial activities and position of a business,
person, or other entity. The main types of financial statements are:

1. Income Statement (Profit and Loss Statement): This statement shows the company's
revenues and expenses during a specific period, resulting in net profit or loss.

2. Balance Sheet (Statement of Financial Position): This statement provides a snapshot of the
company’s assets, liabilities, and equity at a specific point in time.

3. Cash Flow Statement: This statement shows the inflows and outflows of cash during a
specific period, categorized into operating, investing, and financing activities.

4. Statement of Changes in Equity (Statement of Retained Earnings): This statement details

the changes in the company’s equity during a specific period, including contributions by and
distributions to owners.

These statements collectively provide a comprehensive view of a company's financial health

and are essential for stakeholders such as investors, creditors, and management.

36
Part -4 Research Methodology

37
 4.1 Introduction to Research

Introduction to Research on Bajaj Auto

Bajaj Auto Limited, a flagship company of the Bajaj Group, stands as one of the most
prominent names in the global two-wheeler and three-wheeler manufacturing industry.
Established in 1945, the company has evolved significantly over the decades, playing a
crucial role in shaping the Indian automobile sector. With its headquarters in Pune, India,
Bajaj Auto has established a robust presence in both domestic and international markets,
known for its innovation, quality, and cost-effectiveness.

This research aims to delve into the various facets of Bajaj Auto, analyzing its business
strategies, market positioning, and competitive advantages. The study will examine how
Bajaj Auto has sustained its growth trajectory amidst an evolving automotive landscape,
characterized by shifting consumer preferences, technological advancements, and increasing
environmental concerns. Furthermore, the research will explore the company's approach to
product development, market expansion, and its response to industry challenges such as
regulatory changes and global economic fluctuations.

By employing a comprehensive research methodology, this study seeks to provide insights

into Bajaj Auto’s operational strategies, financial performance, and its impact on the broader
automobile industry. The research will draw on a mix of qualitative and quantitative data
sources, including company reports, market analysis, and expert interviews, to construct a
well-rounded understanding of Bajaj Auto’s business dynamics and future prospects

38
 4.2 Need for study

 The current research has a very wide and broad scope.

 The scope of this report is restricted to profitability analysis, liquidity analysis, short-
term financial strength analysis through working capital management, and long-term
financial strength analysis through solvency ratios analysis

 The current research focuses specifically on monetary issues.

 The present study did not cover non-monetary factors that could have a direct effect
on the financial output of the two-wheeler industry and selected two-wheeler firms.

 Other financial issues such as capital budgeting, the effect of social, economic, and
political conditions on the two-wheeler industry, the impact of government policies on
trade and industry, and so on are not covered in this report.

39
 4.3 Objectives of the study

1.1 To evaluate the liquidity and profitability position of Bajaj auto ltd.

1.2 To Examine the Solvency and turnover position of Bajaj auto ltd

1.3 To offer suitable suggestions based on the results of the study.

40
 4.4 Limitation of study

1. The Bajaj Auto was studied using secondary data from published reports and journal
articles from 2020 to 2022. The information gathered from the above sources may not
contain all of the necessary details. As a result, the current research would take into
account all of the short comings that are inherent in the secondary data from financial
reports.

2. The sample size for the current study is very small. Only one two- wheeler companies
are included in the sample. Therefore, the limitation of the small sample is also
applicable to the present study.

41
 4.5 Literature Review

Alagumurugan (2022) made a research on the financial performance analysis of Bajaj

Auto Ltd. The main objective of the study was to evaluate the liquidity, profitability
position, solvency and turnover position of the company. Ratio analysis was used for
analysing the financial performance of evaluation. There have been fluctuations in the
liquidity ratio and net profit ratio. Debt equity ratio was good and proprietary ratios have
been above standards. The results of the study concluded that asset turnover ratio and
debt equity ratio was appreciable.

Mayilsamy and Sarulatha (2023) analysed that the financial performance of Bajaj Auto
Limited. The main objective of the study was to identify the liquidity and profitability
position of the company. Ratio analysis was used to analyse the financial statement of the
company. The findings states that the current ratio is generally satisfactory but its liquid
ratio and net profit ratio have shown fluctuations and are not consistently satisfactory.
The results suggests that it should focus on creating assets, reducing liabilities and
lowering costs to improve financial position and net profit.

Geetanjili Shrivastav and Vikas Bhatol (2021) have done a study on financial statement
analysis of Bajaj Auto and Hero MotoCorp. The primary objective of the study was to
analyse financial statement of the firms. Three years of financial data was used for
analysis. Trend analysis, ratio analysis, comparative balance sheet and profit & loss
account was the tools used. The findings shows that Bajaj Auto Ltd had favourable
profitability ratio compared to hero MotoCorp ltd. While hero MotoCorp had better short-
term financial position. Both companies have better ratios than other motor companies in
the industry.

Muruganantham and Barkavi (2020) conducted a study on the financial performance

analysis of TVS motors. The objective of the study was to analyse the liquidity and
profitability position of the company. Five years of Secondary data was used for
analysing the financial statements of the company. The findings shows that the financial
performance of the company had fluctuations. The performance of the company had
lowest to highest performance throughout the five years. The suggestion shows that the

42
company needs to boost liquidity, profitability by decreasing expenses and increasing
turnover for future growth.
Thamilselvan and Nivetha (2021) made a study on financial performance of automobile
industry with special hero MotoCorp limited. The primary objective of the study was to
study the financial performance of the company. The secondary objective of the study
was to evaluate the liquidity, profitability and turnover position of the company. Hero
MotoCorp limited has shown positive trend in various financial ratios. The working
capital has also shown fluctuations but increased in the year 2020. The summarization of
the study showed that the company’s future looks promising if they pay attention to
working capital, investments and overall goals.

Pravin Narayan Mahamuni and Anil Arun Poman (2019) evaluated a study on
profitability performance of Bajaj Auto Ltd & hero MotoCorp by using DuPont model.
The objective of the research was to analyse the profitability performance of Bajaj Auto
& hero MotoCorp. The study was analysed by using five years of secondary data of both
the firms. The comparisons shows that the hero MotoCorp has higher rate of equity and
rate of return than the Bajaj Auto Limited. But Bajaj Auto Ltd., has higher financial
leverage. The result portrays that Bajaj auto limited has better performance rather than its
competitor Hero MotoCorp.

Kalimuthu and Pavithra (2021) made a study on financial performance of hero MotoCorp
limited. The main objective of the study was to analyse the liquidity and profitability of
the company. Five years of Secondary data was used for analysis and ratio analysis was
used as a tool for analysing financial statements. The financial ratios show a mixed trend
with satisfactory liquidity, improving efficiency in generating profits. The result shows
that the company is able to meet short term obligation. It has to focus on expense
reduction and improving profitability.

43
 4.6 Types Of Research

 Collection Of Data

For the success of the present study data was collected mainly from secondary sources like
annual reports of Bajaj from the FY 2018-20 to FY 2022-23, newsletter, magazines and
journals of the company. Research involves gathering data that describe events and then
organizes, tabulates, depicts and describes the data collection it often uses visual aids such as
graphs and charts to aid the reader in understanding the data.

 Types Of Data

The type of research problem an organization is facing will determine the research design and
not vice-versa. The design phase of a study determines which tools to use and how they are
used. The last 3 years annual report of the company is compiled and tabulated for the purpose
of study.

 Comparative study of Balance sheet

 Comparative study of Profit and loss account for the FY 2018-19& 2022-23

 Trend Analysis

 Ratio Analysis

1. Profitability Ratios

1.1 Net Profit Ratio

1.2 Gross profit Ratio
1.3 Operating Profit Ratio
1.4 Return On Assets Ratio
1.5 Return On Shareholder’s Fund Ratio
1.6 Operating Ratio
1.7 Return On Investment Ratio

2. Liquidity Ratio
2.1 Current Ratio
2.2 Quick Ratio

44
 3. Solvency Ratio
3.1 Proprietary Ratio
3.2 Fixed Assets Ratio
3.3 Debt Equity Ratio

 Sources Of Data Collection

Secondary data sources include published financial statements, websites, books, journals and
the internet, along with profit and loss accounts, balance sheets, and other relevant sources.

45
 5. Analysis &Interpretation of Data

[Link] RATIOS

1.1 NET PROFIT RATIO

The Net Profit Ratio is a crucial metric for evaluating a company's financial performance and
measures its profitability. It is also identified as net profit margin.

TABLE 1.1
Formula: Net Profit Ratio = ( Net Profit / Net Sales ) * 100

YEAR NET PROFIT NET SALES(Rs.) RATIO

2018-2019 4577.86 30249.96 15.08
2019-2020 4890.40 29918.65 16.35
2020-2021 4550.70 27741.08 16.40
2021-2022 5586.34 33144.71 16.85
2022-2023 5627.60 36427.60 15.45

Total 80.13
Mean 16.026
Standard Deviation 0.733
Coefficient of Variation 4.575

The profitability ratios of the company have increased rapidly in the last few years; 2022 had
the highest ratio at 16.85%, while 2021 had the lowest ratio at 16.40 %. 2019 had a ratio of
15.08 %, slightly less than previous years when compared to 2020's 16.35 %. Having a ratio
of 15.45 % in 2023, the most recent year, the profitability was positive but decreased. The
dataset has an average mean of 16.026, moderate variability around it with a standard
deviation of 0.733, and a relatively low coefficient of variation of 4.575.

46
 1.2 GROSS PROFIT RATIO

Gross Profit is a financial metric that represents the difference between a company's revenue
from sales and its cost of goods sold (COGS). It is a key indicator of a company's
profitability at the initial stage of the production process.

TABLE 1.2
Formula: Gross Profit Ratio = ( Gross Profit / Net Sales ) * 100

YEAR GROSS PROFIT NET SALES (Rs.) RATIO

(Rs.)
2018-2019 4715.96 30249.96 15.59
2019-2020 4846.82 29918.65 16.20
2020-2021 4668.82 27741.08 16.83
2021-2022 4988.28 33144.71 15.05
2022-2023 4328.36 36427.60 17.20

Total 64.04
Mean 16.01
Standard Deviation 0.922
Coefficient of Variation 5.759

The gross profit ratios of the company have increased appreciably in the last few years. The
ratio increased to 17.20% in 2023, suggesting a significant profit in relation to net sales. It
reached 16.83 % in 2021, demonstrating strong performance. 2020 had a ratio of 16.20%,
which suggests strong profitability. The ratio was 15.59 % in 2019, indicating strong
performance. With a ratio of 15.05 % in 2022, gross profit as a percentage of net sales was
lower. The dataset has an average mean of 16.01, moderate variability around the mean with
a standard deviation of 0.922, and a relatively low coefficient of variation of 5.759.

47
 1.3 OPERATING PROFIT RATIO

The Operating Profit Ratio, also known as the Operating Margin, is a financial metric that
measures a company's efficiency in generating profit before interest and taxes by expressing
operating profit as a percentage of net sales.

TABLE 1.3
Formula: Operating profit Ratio = ( Operating profit/ Net Sales ) * 100

YEAR OPERATING NET SALES (Rs.) RATIO

PROFIT (Rs.)
2018-2019 4982.02 30249.96 16.47
2019-2020 5096.23 29918.65 17.03
2020-2021 4928.48 27741.08 17.76
2021-2022 5258.84 33144.71 15.86
2022-2023 6549.14 36427.60 17.98

Total 85.1
Mean 17.02
Standard Deviation 0.883
Coefficient of Variation 5.187

The operating profit ratios of the company have increased significantly in recent years. The
highest ratio, 17.98%, was recorded in 2023, showing a strong profit in relation to net sales.
With a ratio of 17.03 % in 2020, good efficiency was shown. The ratio was 16.47 % in 2019,
which was marginally less than in previous years but still represents strong performance. The
ratio was 15.86 % in 2022, which suggests a decrease in earnings. The dataset has an average
mean of 17.02, moderate variability around the mean with a standard deviation of 0.883, and
a relatively low coefficient of variation of 5.187.

48
 1.4 RETURN ON ASSETS RATIO

Return on Assets (ROA) is a financial metric that evaluates a company's efficiency in

utilizing its assets to generate profit, calculated by dividing net income by average total
assets.

TABLE 1.4
Formula: ( Net income/ Average Total Assets ) * 100

YEAR NET INCOME AVERAGE TOTAL RATIO

(Rs.) ASSETS (Rs.)
2018-2019 4679.66 21779.90 21.48
2019-2020 5103.14 19925.49 25.61
2020-2021 4561.25 25202.26 18.09
2021-2022 5027.53 26668.80 18.85
2022-2023 5667.08 25425.86 22.28

Total 106.31
Mean 21.262
Standard Deviation 22.995
Coefficient of Variation 14.084

In recent years, there has been a notable increase in the ratio of net income to average total
assets. The ratio was 25.61 %in 2020, which suggests effective asset use. It was 22.28 % in
2023, which is a good result. The ratio was 21.48 % in 2019, which suggests high revenue
generation. It was 18.85 % in 2022, indicating less but still positive net income. It was 18.09
% in 2021, suggesting slightly decreased net income. The dataset's mean is 21.262, with a
large standard deviation of 22.995 indicating significant variability. The coefficient of
variation is 14.084, indicating moderate relative variability compared to the mean.

49
 1.5 RETURN ON SHAREHOLDER’S FUND RATIO

Return on Shareholders' Funds (ROSF) is a financial metric that measures a company's

profitability based on its shareholders' equity. It is calculated by dividing net profit by
average shareholders' equity, providing insight into the efficiency of generating returns. A
higher ROSF indicates better profitability and efficient use of funds.

TABLE 1.5
Formula: Return On Shareholder’s Funds = (Net Income / Shareholder Fund) * 100

YEAR NET INCOME SHAREHOLDER RATIO

FUND (Rs.)
2018-2019 4675.18 21779.90 21.47
2019-2020 5099.98 19925.40 25.60
2020-2021 4554.59 25202.26 18.07
2021-2022 5018.87 26668.80 18.81
2022-2023 5627.60 25425.86 22.13

Total 80.48
Mean 20.12
Standard Deviation 1.982
Coefficient of Variation 9.849

Return on shareholder’s fund ratio had a highest ratio of 25.61 % in 2020, which suggested a
high net income relative to average total assets. The ratio was 22.28 % in 2023. With a ratio
of 21.48% in 2019, net income generation was well-performing when compared to average
total assets. The ratio was 18.85 % in 2022, indicating a relatively smaller yet positive net
income. The lowest ratio in 2021 was 18.09 %, which suggested slightly lower net income in
comparison. The dataset has an average mean of 20.12, moderate variability around it with a
standard deviation of 1.982, and a coefficient of variation of 9.849%, indicating low relative
variability.

1.6 OPERATING RATIO

50
The Operating Ratio is a financial metric that evaluates a company's efficiency by comparing
operating expenses to net sales. It is calculated as a percentage and indicates efficient cost
management, indicating higher profitability potential. A lower ratio indicates better financial
health and operational efficiency.

TABLE 1.6
Formula: Operating Ratio = (operating Expenses/ Net Sales) * 100

YEAR OPERATING NET SALES (RS.) RATIO

EXPENSES (RS.)
2018-2019 29976.57 30249.96 99.09
2019-2020 27138.11 29918.65 90.70
2020-2021 2302.08 27741.08 83.02
2021-2022 24885.43 33144.71 75.08
2022-2023 25324.36 36427.60 69.51

Total 417.4
Mean 83.48
Standard Deviation 11.850
Coefficient of Variation 14.196

Operating expenses ratio in 2019 was almost equal to net sales, a higher level of expenses
with 99.09%. The ratio was 90.70 % in 2020, which suggests that expenses were
considerable. It was 83.02 % in 2021. It was 75.08 % in 2022, suggesting a lesser percentage.
By 2023, the ratio had dropped to 69.51 % net sales, showing still more operating expense
decrease. The dataset has an average mean of 83.48, a large standard deviation of 11.850 and
a moderate coefficient of variation (14.196), indicating significant variability around the
mean.

51
 1.7 RETURN ON INVESTMENT

The Return on Investment (ROI) Ratio is a financial metric that evaluates an investment's
profitability by dividing the net profit by the initial cost. A higher ratio indicates better
investment efficiency and is crucial for investors and businesses to evaluate investment
performance.

TABLE 1.7
Formula: Return on investment= (Operating profit / Capital Employed) * 100

YEAR OPERATING CAPITAL RATIO

PROFIT (Rs.) EMPLOYED (Rs.)
2018-2019 4982.02 25929.70 22.14
2019-2020 5096.23 25232.50 24.85
2020-2021 4928.48 25886.99 19.04
2021-2022 5258.84 20520.09 25.26
2022-2023 6549.14 22506.71 19.31

Total 110.6
Mean 22.12
Standard Deviation 2.945
Coefficient of Variation 113.314

The Return-On-Investment ratio in 2022 was 25.26%, suggesting a significant profit. In 2020,
it was 24.85 %, indicating high achievement. In 2019, it was 22.14 %, showing strong
performance. In 2023, it was 19.31%, indicating a bit lesser but still positive profit. In 2021,
it was 19.04 %, indicating a limited profit. These trends suggest efficient capital utilization
and profit generation. The dataset's mean value of 22.12 is average, with a large standard
deviation of 2.945 indicating significant variability. The high coefficient of variation
(113.314%) further reveals significant relative variability.

52
[Link] RATIO

2.1 CURRENT RATIO

Current Ratio is calculated by dividing the company’s total current assets by its total current
liabilities.

TABLE 2.1
Formula: Current Ratio= Current Assets / Current Liabilities

YEAR CURRENT CURRENT RATIO (Times)

ASSETS (Rs.) LIABILITIES (Rs.)
2018-2019 7062.66 4873.68 1.45
2019-2020 6596.96 4253.21 1.55
2020-2021 14175.13 5643.21 2.51
2021-2022 9994.47 4689.44 2.13
2022-2023 8870.41 5198.04 1.71

Total 9.35
Mean 1.87
Standard Deviation 0.442
Coefficient of Variation 23.638

In 2021, the company's liquidity ratio was 2.51, showing a high current assets-to-liabilities
ratio. In 2022, the ratio was 2.13, suggesting a strong liquidity position. In 2020, the ratio was
1.55 times, suggesting a healthy but reduced liquidity position. In 2019, the ratio was 1.45
times, showing a notably reduced liquidity position. In 2023, the ratio was 1.71 times,
showing slightly decreased liquidity but still satisfactory. The dataset has an average mean of
1.87, moderate standard deviation of 0.442, and a coefficient of variation of 23.638,
indicating moderate variability around the mean.

53
 2.2 QUICK RATIO

The liquid asset to current liability ratio measures a company's immediate debt paying ability,
also known as the Fast ratio, Acid Test Ratio, or Near Money Ratio.

TABLE 2.2
Formula: Quick Ratio= Liquid Assets / Current Liabilities

YEAR LIQUID ASSETS CURRENT RATIO (Times)

(Rs.) LIABILITIES (Rs.)
2018-2019 8493.05 4873.68 1.74
2019-2020 6101.15 4253.21 1.43
2020-2021 5333.46 5643.21 0.94
2021-2022 12681.24 4689.44 2.73
2022-2023 8763.96 5198.04 1.74

Total 8.58
Mean 1.716
Standard Deviation 0.6544
Coefficient of Variation 38.139

In 2022, the company's liquidity position was high, with a ratio of 2.73 times, indicating a
significant quantity of liquid assets. In 2019, and 2023, the ratio was 1.74 times, showing a
favourable liquidity situation. In 2020, the ratio was 1.43 times, showing a slightly reduced
liquidity position. In 2021, the ratio was 0.94 times, showing a lower liquidity position since
liquid assets fell short of current liabilities. The dataset's mean is 1.716, indicating a moderate
level of variability. The standard deviation is 0.654469, indicating a wider range of data
points. The coefficient of variation (CV) is 38.13923, indicating a high level of relative
variability.

54
 3. SOLVENCY RATIO

3.1 PROPRIETARY RATIO

The Proprietary Ratio is a financial metric that measures a company's share of total assets
funded by shareholders' equity. A higher ratio indicates a more secure financial position and a
company's solvency, allowing it to meet long-term obligations using shareholder funds.

TABLE 3.1
Formula= Shareholder’s Fund/Total Assets.

YEAR SHAREHOLDER’S TOTAL ASSETS RATIO (Times)

FUND (Rs.) (Rs.)
2018-2019 21779.90 27280.39 0.80
2019-2020 19925.40 24773.30 0.80
2020-2021 25202.26 31530.20 0.80
2021-2022 26668.80 31921.94 0.83
2022-2023 25425.86 31127.69 0.82

Total 4.05
Mean 0.81
Standard Deviation 0.0141
Coefficient of Variation 1.7459

In 2022, the shareholder's fund accounted for 0.83 of total assets, indicating a strong equity
position. In 2023, the ratio was 0.82, showing a consistent relationship. In 2019, 2020, and
2021, the percentages matched for third-highest with 0.80 times, suggesting a consistent and
stable proportion of shareholder funds to total assets. The dataset's mean is 0.81, indicating an
average of 0.81. The standard deviation is 0.014142, indicating low variability. The
coefficient of variation (CV) is 1.745943, indicating a low level of relative variability.

55
 3.2 FIXED ASSETS RATIO

The Fixed Assets Ratio, also known as the Fixed Assets to Net worth Ratio, measures a
company's fixed assets' proportion to its net worth. It evaluates the degree of investment in
fixed assets compared to the company's overall financial position. A higher ratio suggests
substantial investment in property, plant, and equipment, while a lower ratio suggests a more
conservative approach.

TABLE 3.2
Formula: Fixed Assets Ratio= Total Fixed Assets/ Long Term Funds

YEAR FIXED ASSETS LONG TERM RATIO (Times)

(Rs.) FUNDS (Rs.)
2018-2019 22257.28 25428.15 0.87
2019-2020 21927.47 31921.94 0.69
2020-2021 17355.07 31530.20 0.55
2021-2022 18176.34 24773.30 0.73
2022-2023 20317.73 27380.39 0.74

Total 3.58
Mean 0.718
Standard Deviation 0.1148
Coefficient of Variation 16.0341

According to the data, the fixed asset investment ratio in 2019 was high at 0.87 times,
suggesting that long-term funds were used efficiently for assets in 2023 when the ratio was
0.74 times. A modest decline to 0.73 times in 2022 indicates a strong commitment to long-
term investments. A decrease to 0.69 times in 2020 points to a change in the allocation of
funds. The lowest ratio was observed in 2021, suggesting a substantial decrease in fixed
assets relative to long-term funds and possibly a shift in strategy. The dataset consists of 3.58
data points, with a mean of 0.718 and a standard deviation of 0.114804. The coefficient of
variation (CV) is 16.0341, indicating greater relative variability, with smaller deviations
indicating closer data points and larger deviations indicating wider ranges.
3.3 DEBT EQUITY RATIO

56
Debt to equity relationship refers to funds invested by third parties, including debts,
mortgages, and all long-term loans. It is also known as risk ratio.

TABLE 3.3
Formula: Debt Equity Ratio= Long Term Debt/ Shareholder’s Fund

YEAR DEBT (Rs.) SHAREHOLDER RATIO (Times)

FUND (Rs.)
2018-2019 124.52 19563.63 0.006
2019-2020 125.59 19925.49 0.006
2020-2021 121.46 25202.26 0.005
2021-2022 159.07 25425.86 0.006
2022-2023 157.77 25425.86 0.006

Total 0.029
Mean 0.0058
Standard Deviation 0.00045
Coefficient of Variation 7.71057

In 2022 and 2023, the company's Debt to Equity ratio is low, suggesting a cautious financial
structure. This trend holds throughout both 2019 and 2020, suggesting that equity financing is
preferred over debt financing. The ratio is at its lowest in 2021, suggesting a more cautious
financial structure with a low debt to equity ratio. The dataset's total is 0.029, with an average
of 0.0058. The standard deviation is 0.000447, indicating low variability. The coefficient of
variation (CV) is 7.710579, indicating a moderate level of relative variability.

57
 6. Findings

MAJOR FINDING

The study was conducted on the basis of ratio analysis of Bajaj Auto Limited. The following
were the observations from the analysis.

 The profitability ratio of Bajaj auto limited was considered to be more favourable

 Bajaj motors have a favourable generating revenue from its assets.

 Company have got an average and yet favourable leverage ratio.

MINOR FINDINGS

o There was no significant increase or decrease in the companies leverage ratio.

o There was a Decreased in the coverage ratio Bajaj motors ratio.

58
 7. Suggestions

1. Except019 & 2020, the results of the current ratios were shown above the standard
Norm of 2:1. So, it is appreciable that the firm must maintain equal or above the
Standard Norm in their future periods

2. The results of the operating profit ratios were no great improvement when compared
to Previous years. If the firm concentrates on its operating sources means it
furthermore helps the company’s growth.

3. The debt-equity ratio of the firm was too good. The firm tries to follow that same
Improvement in the future also.

4. The results of the proprietary ratios were above the standard norm. It helps to the easy
to Meet its shareholder’s fund by its assets of the firms. So, they continue to follow
this same Strategy in the future period.

5. The overall Assets turnover ratio was appreciable. In Addition, to that, the firm tries
to Increase the utilization of its resources. It creates a positive appearance among the
investors.

59
 8. Conclusion

Over the last decade, the two-wheeler industry has grown significantly. Increased demand in
urban and semi-urban regions, as well as a relatively low cost of ownership, are two major
factors, two - wheelers industry is growing in India. Its success is boosted by the fact that it is
the favoured mode of transportation over public transportation and four-wheelers. With
increasing fuel costs, raising safety concerns, numerous road crashes, higher insurance
premiums, and speculation about the electrification of motorcycles, the industry has recently
been facing downturns and showing signs of decline. There are roadblocks to the industry's
expansion.

The primary motive of this report is to analyse financial statement of the Bajaj it measures the
performance in term of assets utilization, and profitability. This study tries to forecast the
annual growth rate of income of the company with the help of trend analysis. It also provides
some suggestion to improve the overall financial performance of the Bajaj. The secondary
data is used from published reports and journal article to study Two-wheeler Industry.

Firm should examine their leverage ratios, as it has got an average yet favorable ratio. As a
result, firm are less reliant on external liabilities. Investor should always check on the
financial analysis of the companies before investing. The firm is considered to be favorable
for the investors to invest.

60
 9. Bibliography

1. *Narayanan, K. (2009).* Technology Acquisition and Productivity Growth: A Case Study

of the Indian Automobile Industry. Springer.
2. *Bhargava, R. C. (2017).* The Maruti Story: How a Public Sector Company Put India on
Wheels. HarperCollins India.
Journal Articles
1. *Ghosh, S., & Roy, S. (2016).* "Impact of Brand Equity on Customer Purchase Intentions:
An Empirical Study on Bajaj Auto Limited." Journal of Marketing Management, 7(2), 40-55.
2. *Das, S., & Banerjee, R. (2020).* "Innovation Strategies in Indian Automobile Industry:
Case Study of Bajaj Auto Ltd." Journal of Business Research, 114, 12-20.

1. Bajaj Auto Ltd. (2023).* Annual Report 2022-2023. Retrieved from [Bajaj Auto
Official Website]).
2. . IBEF (2022).* Automobile Industry in India. India Brand Equity Foundation. .
News Articles
1. *Sharma, A. (2022, October 15).* "Bajaj Auto Reports Record Sales Growth Amid New
Product Launches." The Economic Times. Retrieved from [Economic
Times]([Link]
2. *Varma, P. (2023, March 22).* "How Bajaj Auto is Leveraging Electric Vehicles for Future
Growth." Financial Express. Retrieved from [Financial Express].

61
 10. Annexure
BALANCE SHEET OF MAR 24 MAR 23 MAR 22 MAR 21 MAR 20
BAJAJ AUTO (in Rs. Cr.)
12 months 12 months 12 months 12 months 12 months
EQUITIES AND
LIABILITIES

SHAREHOLDER’S FUNDS

Equity Share Capital 279.18 282.96 289.37 289.37 289.37

TOTAL SHARE CAPITAL 279.18 282.96 289.37 289.37 289.37

Reserves and Surplus 24,581.32 25,142.90 26,379.43 24,912.89 19,636.12

TOTAL RESERVES AND 24,581.32 25,142.90 26,379.43 24912.89 19,636.12
SURPLUS

TOTAL SHAREHOLDERS 24,860.50 25,425.86 26,668.80 25,202.26 19,925.49

FUNDS

NON-CURRENT
LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 0.00 0.00
Deferred Tax Liabilities [Net] 506.94 345.15 403.33 522.14 346.38
Other Long Term Liabilities 156.67 157.77 156.07 160.61 167.72
Long Term Provisions 0.84 0.87 1.30 1.98 80.50
TOTAL NON-CURRENT 664.45 503.79 563.70 684.73 594.60
LIABILITIES

CURRENT LIABILITIES
Short Term Borrowings 834.05 0.00 0.00 0.00 0.00
Trade Payables 5,610.18 4,073.88 3,633.18 4,573.81 3,199.70
Other Current Liabilities 2,093.26 958.21 902.51 917.03 895.54
Short Term Provisions 188.21 165.95 153.75 152.37 157.97
TOTAL CURRENT 8,725.70 5,198.08 4,689.44 5,643.21 4,253.21
LIBILITIES

TOTAL CAPITAL AND 34,250.65 31,127.69 31,921.94 31,530.20 24,773.30

LIABILITIES

62
ASSETS

NON-CURRENT ASSRTS
Tangible Assets 3,137.85 2,635.29 1,757.57 1,565.33 1,602.03
Intangible Assets 11.91 30.70 25.32 47.30 43.09
Capital Work-in-progress 24.29 81.92 76.82 15.98 46.54
Other Assets 48.90 50.01 51.13 52.30 53.90
FIXED ASSETS 3,226.15 2,797.92 1,910.84 1,680.91 1,759.21

Non-Current Investments 19,613.02 18,503.96 18,849.63 14,602.84 15,416.20

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00
Long Term Loans And 2.06 2.28 4.57 5.22 32.46
Advances
Other Non-Current Assets 1,052.24 953.12 1,162.43 1,066.10 968.47
TOTAL NON-CURRENT 23,893.47 22,257.28 21,927.47 17,355.07 18,176.34
ASSETS

CURRENT ASSETS
Current investments 4,879.48 4,419.37 4,969.13 8,028.11 2,779.75
Inventories 1,695.62 1,397.90 1,230.51 1,493.89 1,063.50
Trade Receivables 2,122.40 1,776.12 1.516.38 2,716.85 1,725.10
Cash And Cash Equivalents 536.62 285.75 588.34 527.36 308.27
Short Term Loans And 3.21 3.62 4.17 5.74 6.11
Advances
Other Current Assets 1.119.85 987.65 1,685.94 1,403.18 714.23
TOTAL CURRENT 10,357.18 8,870.41 9,994.47 14,175.13 6,596.96
ASSETS

TOTAL ASSETS 34,250.65 31,127.69 31,921.94 31,530.20 24,773.30

63