BALANCE SHEET ANALYSIS

1.1:INTRODUCTION TO BALANCE SHEET ANALYSIS

The Balance sheet comprises of a list of assets, liabilities and capital at a given
date. It is static in character because it tells about the financial position of a business
as on a certain data. At the same time, business is dynamic while Balance sheet is
static. It records only periodic changes rather than continuous once. More specifically,
Balance sheet contains information about resources and obligations of a business
entity and about owners 'interests in the business at a particular point of time. Thus,
the Balance sheet of a firm prepared on 31st December reveals the firm's financial
position on this specific date. In simple language or in a laymen's language, a Balance
sheet may be called as a statement of equity in which equality is established by
representing assets values on one side and the values of liabilities and owner's fund
the other side of it.

"The balance sheet is a statement which reports the property's value-owned by the
enterprise and the claims of the creditors and owners against these properties". The
amount of value is obtained by position and balancing the individual accounts of each
item.
1.1.1DEFINITION:
Balance sheet analysis is the study of Financial Statement that Summarizes a
company's Assets, liabilities and Share Holders equity at a specific point in time.
These three balance sheet segments give investors an idea as to what the company
owns and owes, as well as the amount invested by share holders.
The Balance sheets gets its name from the fact that the two sides of the equation
above-assets on the side and liabilities plus Share Holders' equity on the other -must
balance out. This is Intuitive: a company has to pay for all the things it owns (assets)
by either borrowing money (taking on liabilities) or taking it from investors (issuing
Share Holders' equity).

Assets = Liabilities +Share Holders' equity

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1.1.2 BASIC DIVISION OF BALANCE SHEET:

BALANCE SHEET
ASSETS LIABILITIES
Current assets Current liabilities
Cash Accounts payable
Account receivable Short-term notes
(Less: doubtful accounts) Current portion long term notes
Inventory Interest payable
Temporary investment Taxes payable
Prepaid Expenses Account payable

Total Current assets Total current liabilities

Fixed Assets
Long-term investments Long term liabilities
Land Mortgage
Building Other long-term liabilities
(Less: accumulated depre) Total long-term liabilities
Plant and equipment
(Less: accumulated depre) Shareholders 'Equity
Furniture and Fixtures Capital stock

(Less: accumulated depre) Retained Earnings

Total Net Fixed assets Total shareholder's equity

Total Assets Total liabilities & Equity

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1.13 ASSESTS:

With In the assets Segment, accounts are listed from top to bottom in
order of their Iiquidity, that is, the ease with which they can be converted into cash.
They are divided into current Assets, Those which can be converted to cash in one
vear or less; and non-current or long-term Assets, which cannot.
Assets are thngs that the company owns. They are the resources of the company that
have been acquired through transactions, and have future economic value that can be
measured and expressed in dollars. Assets also include costs paid in advance that have
not yet expired, such as prepaid advertising, prepaid insurance, prepaid legal fees, and
prepaid rent.

Examples of asset accounts that are reported on a company's Balance Sheet include

 Cash
 petty cash
 temporary investments
 accounts receivable
 inventory
 Suppliers
 prepaid insurance
 Land
 land improvements
 buildings
 equipment
 Goodwill
Usually asset accounts will have debit balances.
Contra Assets are Asset Accounts with credit Balances. Examples of contra asset
accounts include:
 Allowance for Doubtful account
 Accumulated Depreciation-Land Improvements
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 Accumulated Depreciation-buildings
 Accumulated Depreciation-equipment
. Accumulated Depreciation, etc

1.1.4 CLASSIFICATION OF ASSETS ON THE BALANCE SHEET:

Accountants usually prepare classified balance sheet. "Classified"
means that the balance sheet accounts are presented in Distinet Groupings, Categories,
or Classifications. The asset classification and their order of appearance on the
balance sheet are:

 current assets
 investments
 Property, Plant, and equipment( Fixed assets)
 intangible Asset
 other Assets

CURRENT ASSETS:

 Cash and Cash equivalents:

The most liquid Assets, these can include Treasury bills and Shot-term
Certificates of deposit, as well as hard currency.
 Marketable securities:
Equity and debt securities for which there is liquid market.
 Accounts receivable:
Money which customers owe the Company, perhaps including an allowance for
doubtful accounts (an example of a contra accounts), since a certain proportion of
customers can be expected not to pay.
 Inventory:
Goods available for sale, valued at the lower o the cost or market price.
 Prepaid expenses:
Representing value that has already been paid for, such as insurance, advertising
contracts or rent.

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LONG-TERM ASSETS:

 Long term investment:

Securities that will not or cannot be liquidated in the next year.

 Fixed assets:
These include land, machinery, equipment, buildings and other
durable, generally capital -intensive assets.
 Intangible assets:
These include non-physical, but still valuable, assets such as
intellectual property.
 Goodwill:
In general, intangible assets are only listed on the balance sheet if they are
acquired, rather than developed in-house; their value may therefore be wildly
understated by not including a globally recognized logo, for example-or just as wildly
overstated.

OTHER ASSETS:

All other assets which cannot be including in any of the above categories are
grouped as other Assets. These assets posses a tangible form but these are not
directly used in the operations of business. Such assets may be
1. Investments excluding marketable securities
2. Non- Trade Debtors
3. Fund earmarked for assets
1.1.5 LIABILITIES:

In financial Accounting, a liability is defined as the future sacrifices of economic

benefits that the entity is obliged to make to other entities as a result of past transactions
or other past events, the settlement of which may result in the transfer or use of assets,
provisions of services or other yielding of economic benefits in the future.

Liability is a present obligation of the enterprise arising from past events, the
settlement of which is expected to result in an outflow from the enterprise of resources
embodying economic benefits.
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A Liability is a debt owed by a company that requires the entity to give up an

economic benefit (cash, assets, etc.) to settle past transactions or events. The liability
section can be found in the balance sheet, opposite to the assets section. This is
because assets are recorded as credits. They are listed in order of payment terms, from
shortest to longest.

1.1.6 CLASSIFICATION OF LIABILITIES ON THE BALANCE

SHEET:
Liabilities are settled over time through the transfer of economic benefits
including money, goods or services. Recorded on the right side of the Balance Sheet.
There are current liabilities and non-current liabilities.

CURRENT LIABILITIES:

Current liabilities are a company's debts or obligations that are due within one
year, appearing on the company's balance sheet.

 Accounts payable: this is money owed to suppliers.

 Accrued expenses: these are monies due to a third party but not yet payable.
 Bank account overdrafts: these are the short-term advances made by the bank
for overdraft. Accrued Interest: These include all interest that has accrued since
last paid.
 Dividends payable: These are the dividends declared by the company Board of
directors that have not yet been paid to the sharcholders.
 Unearned Revenue: these are payments given by customers as an advance for
future work that is expected to be completed by the end of the next 12 months.

NON-CURRENT LIABILITIES:

Non -current liabilities are long term financial obligations listed on a company's
balance sheet that are not due within the present accounting year. Long-term
liabilities can include:
 Long-term debt : interest and principles on bonds issucd •pension fund liability :
the money a company is required to pay into its employces' retirement accounts
 Deferred tax liability : taxes that have been accrued but will not be paid for
another year; besides timing, this figure reconciles differences between
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requirements for financial reporting and the way tax is assessed ,such as
depreciation calculations
Some liabilities are off-balance sheet, meaning that they will not appear on the
balance sheet. Operating leases are an example of this kind of liability.

1.1.7: SHARE HOLDERS' EQUITY:

Shareholders' equity is the money attributable to a business' owners, meaning its Share
Holders. It is also known as "net assets" since it is equivalent to the total assets of a
company minus its liabilities, that is, the debt it owes to non-shareholders.

EQUITY:
• Capital Stock: Capital stock is the combination of a corporation's common stock and
preferred stock. Additional paid-In capital: It is the value of the shares of the company
above what they were issued.

APIC- (issucd price- par value) x basic shares outstanding.

• Retained Earnings: It refers to the percentage of net Earnings not paid out as
Dividends, but retained by the company to be reinvested in its core business, or to
pay debt. Treasury Stock: Treasury stock is the stock a company has either repurchased or
never issued in the first place. It can be sold at a late date to raise cash or reserved to repel
a hostile takeover.

1.1.8: TYPES OF BALANCE SHEET FORMATES:

1.Horizontal formate

2. Vertical formate

(1) Horizontal format of Balance sheet

Assests Amount Liabilities Amount
Fixed Assests Share Capital
……….
Loans & Buildings Add: Net profit Less:
Net loss
……………
Plant & Machinery Less: Drawings

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………..
Furniture & Fixtures
Long-term Liabilities
Debentures
Vehicals
Loans & advances from
Good will Bank
Other Loans &
Investments
Advances
Current Current liabilities
Assests,Loans,Advance
s
Sundry Creditors
Sundry Debtors
Bills Payable
Cash in Hand
Bank overdrafts
Cash at Bank
Outstanding Expenses
Bills receivable
Income Received in
Prepaid Expenses
Advance
Closing Stock
Provisions
For taxation
For divident
(3) Vertical Format of Balance sheet :

Particulars Schedule Amount(rs)

Source of Funds
Share holder’s funds
Share capital 1
Reserves and Surplus
2
Loans Funds
3
Secured Loans
Unsecured Loans 4

Total

Application of Funds
5
Fixed Assests
Gross Block ……………………..
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Less: Block ……………………..

Capital Working progress
…………………......
Investments 6
……………………...
Current Assests , Loans &
Advances
Inventories
Sundry Debtors 7
Cash & Bank balance
8
Loans & Advances
9
Other Current Assests
Less: Current liabilities & 10
provisions
Current liabilities
Provisions
11
Net current Assests
12

…………………….

1.1.9: ADVANTAGES & DISADVANTAGES OF BALANCE

SHEET
ANALYSIS:
ADVANTAGES:

 Balance sheet analysis helps in ascertaining the financial position of the

business
 Balance sheet helps in calculation of various ratios which help in better
management of business.
 Balance sheet discloses the proprictary interest of owner.
 Balance sheet analysis helps in ascertain the amount of capital employed in
business
 Balance sheet analysis discloses the solvency of business by showing how
much assets are available for payment of liabilities

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DISADVANTAGES:
 Balance sheets are static documents - financial position can change next day.
 The value of assets on balance sheet is only estimates, the true value is known
until the assets s sold.
 It does not recognize intangible assets that may provide future benefits to a firm.
 Most assets recorded at historical cost rather than at market value.
 Absence of profit incentive.

What is Balance Sheet?

A balance sheet is a statement of the financial position of a business that lists the assets,
liabilities, and owner's equity at a particular point in time. In other words, the balance
sheet illustrates your business's net worth.

The balance sheet may also have details from previous years so you can do a back-to-
back comparison of two consecutive years. This data will help you track your
performance and will identify ways to build up your finances and see where you need to
improve. 

You can also use the balance sheet to determine how to meet your financial obligations
and figure out the best ways to use credit to finance your operations. 

The balance sheet is the most important of the three main financial statements used to
illustrate the financial health of a business. The other two are:

 The income statement, which shows net income for a specific period of time, such
as a month, quarter, or year. Net income equals revenue minus expenses for the
period.
 The cash flow statement, which shows the movements of cash and cash
equivalents in and out of the business. Chronic negative cash flows are
symptomatic of troubled businesses.

Incorporated businesses are required to include balance sheets, income statements, and
cash flow statements in financial reports to shareholders and tax and regulatory

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authorities. Preparing balance sheets is optional for sole proprietorships and partnerships,

but is useful for monitoring the health of the business.

An up-to-date and accurate balance sheet is essential for a business owner looking for
additional debt or equity financing, or who wishes to sell the business and needs to
determine its net worth.

All accounts in your general ledger are categorized as an asset, a liability or equity. The
relationship between them is expressed in this equation:

                    Assets = Liabilities + Equity

The items listed on balance sheets vary from business to business depending on the
industry, but in general, the balance sheet is divided into these three categories.

Assets

As in the balance sheet example shown below, assets are typically organized into liquid
assets: those that are cash or can be easily converted into cash, and non-liquid assets that
cannot quickly be converted to cash, such as land, buildings, and equipment.

The list of assets may also include intangible assets, which are much more difficult to
value. Generally accepted accounting principles (GAAP) guidelines only allow intangible
assets to be listed on a balance sheet if they are acquired assets with a lifespan and a
clearly identifiable fair market value (the probable price at which a willing buyer would
buy the asset from a willing seller) that can be amortized. These are reported on the
balance sheet at the original cost minus depreciation. This includes items such as:

 Franchise agreements
 Copyrights
 Patents

Liabilities

Liabilities are funds owed by the business and are broken down into current and long-
term categories. Current liabilities are those due within one year.

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IMPORTANCE OF BALANCE SHEET:

A company's balance sheet, also known as a "statement of financial position," reveals the
firm's assets, liabilities and owners' equity (net worth). The balance sheet, together with
the income statement and cash flow statement, make up the cornerstone of any
company's financial statements. If you are a shareholder of a company or a potential
investor, it is important that you understand how the balance sheet is structured, how to
analyze it and how to read it.

How the Balance Sheet Works

The balance sheet is divided into two parts that, based on the following equation, must
equal each other or balance each other out. The main formula behind a balance sheet is:

Assets = Liabilities + Shareholders' Equity

This means that assets, or the means used to operate the company, are balanced by a
company's financial obligations, along with the equity investment brought into the
company and its retained earnings.

Assets are what a company uses to operate its business, while its liabilities and equity are
two sources that support these assets. Owners' equity, referred to as shareholders' equity,
in a publicly traded company, is the amount of money initially invested into the company
plus any retained earnings, and it represents a source of funding for the business.

SCOPE OF STUDY:

The study mainly attempts to analyze the balance sheet of the company selected
for the study. The financial authorities can use this for evaluating their performance in
future, which will help to analyze balance sheets and help to apply the resources of the
company properly for the development of the company and It employees to bring overall
growth. The present study attempt to develop a trend analysis model for Sales and

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balance sheet and Profit and Loss Accounts. There can be forecasting to evaluate the
overall performance of the SRAACL in future.

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NEED &
SCOPE OF THE
STUDY

1.2: NEED AND SCOPE OF THE STUDY:

NEED FOR THE STUDY:

 To know the financial strengths of the company with the help of analyzing the

financial statements.

 To make the comparative study with other firms which are existed in the

competitive world.

 To know the efficiency of management and to provide the useful information

to creditors, shareholders and to management also.
 To know the Earning capacity of the company.

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SCOPE OF THE STUDY:

 The project is covered on Financial Statement Analysis of TVS Motors
 Drawn from annual report of the company.
 The scope of the study is limited to only to this organization.
 The report is confined itself to study a period of 2014-15 to 2018-19.
 As most of the financial information is considered confidential, the access to
the information was restricted.
 The subject matter is limited to Balance Statement Analysis, its analysis and it
performance but not to any other areas of accounting corporate, marketing and
financial matters.

OBJECTIVES
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OF THE
STUDY

1.3: OBJECTIVES OF THE STUDY

 To study the financial position of firm.

 To analyze the actual and real owner's equity.
 To study of the firm to make provisions against possible future losses.
 To know the liquidity of the firm.
 To know the financial position of the firm at a particular date, yet it serves other
purpose as well.

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RESEARCH
METHODOLOGY

1.4: RESEARCH METHODOLOGY

The system of the collecting data for research project is known as rescarch
methodology. Research can be defined as the careful enquiry in to a problem specially
through searching for new knowledge.

Research Methodology can be defined as methodical, unbiased and complete

investigation of subject matter to establish principles. Investigation of problem
discusses pertinent information to help to solve it. The term methodology refers to
carefully planned procedures.

PRIMARY DATA:

The data which is going to collect the first and also for specific purpose and this data
is original character by conducting the surveys we collect the data.

SECONDARY DATA:

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The data which is available or published and this type of data already used by
someone and again used by others this type of data is called existing data.

SOURCES OF THE SECONDARY DATA:

 Collection of required data from annual record, monthly records internal.

 Other books and journals and magazines.
 Annual reports of the company.
 www. Money Control.com

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LIMITATIONS
OF THE
STUDY

1 5: LIMITATIONS OF THE STUDY:

 The study is based on the data collected from annual reports only.
 It has been difficult to analyze the future cash flows.
 It does not consider price levels.
 Change in accounting procedure by a firm may often make financial analysis
misleading.
 An analysis is only a means and not ends in itself. The analyst has to make
interpretation and drawn his own conclusions. Difficult people may interpret
the same analysis in different ways.

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CHAPTER - II

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INDUSTRY
PROFILE

INDUSTRY PROFILE:

A motorcycle (also called a motorbike, bike, or cycle) is a single-track, engine-

powered two-wheeled motor vehicle. Motorcycles vary considerably depending on the task

for which they are designed, such as long distance travel, navigating congested urban traffic,

cruising, sport and racing, or off-road conditions.

Motorcycles are one of the most affordable forms of motorised transport in many

parts of the world and, for most of the world's population; they are also the most common

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type of motor vehicle. There are around 200 million motorcycles (including mopeds, motor

scooters and other powered two and three-wheelers) in use worldwide or about 33

motorcycles per 1000 people. This compares to around 590 million cars, or about 91 per

1000 people. Most of the motorcycles, 58%, are in the developing countries of Asia—

Southern and Eastern Asia, and the Asia Pacific countries, excluding Japan—while 33% of

the cars (195 million) are concentrated in the United States and Japan. As of 2002, India

with an estimated 37 million motorcycles/mopeds was home to the largest number of

motorised two wheelers in the world. China came a close second with 34 million

motorcycles/mopeds.

The first internal combustion, petroleum fueled motorcycle was the Petroleum

Reitwagen. It was designed and built by the German inventors Gottlieb Daimler and

Wilhelm Maybach in Bad Cannstatt, Germany in 1885. This vehicle was unlike either the

safety bicycles or the boneshaker bicycles of the era in that it had zero degrees of steering

axis angle and no fork offset, and thus did not use the principles of bicycle and motorcycle

dynamics developed nearly 70 years earlier. Instead, it relied on two outrigger wheels to

remain upright while turning. The inventors called their invention the Reitwagen ("riding

car"). It was designed as an expedient test bed for their new engine, rather than a true

prototype vehicle. Many authorities who exclude steam powered, electric or diesel two-

wheelers from the definition of a motorcycle, credit the With operations spanning to such

vast gap. Otrranhips. managing a supply chain globally becomes more and more complex.

In countries where Bajaj perceives a strong market potential, they establish a tie up with

one major industrial establishment eager to invest in the project. This investment may

include setting up strategic manufacturing or assembly units, apart from a weiiestabiished

nation-wide network for marketing, distribution and after sales services. These investors

who form alliances with Bajaj Auto are termed as "Business Partners".

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Bajaj Auto offers a number of services to it include: Business partners. They are

Training in sales, service and spare parts management based on the Bajaj

distribution system. Active support for setting up manufacturing facilities overseas

including transfer of technical know-how. Assistance in setting up an assembly plant for

assembly of vehicles from complete knqcked down (CKD) kits. Selecting of machinery

and equipment and training of technical personnel, all in a phased manner as required by

the regulations in the recipient country. Active support in setting nation-wide dealer

network, also involving identification and recommending suitable partner who would assist

the distributor in Business growth.

The industry exhibits some degree of collusive behaviour and thus represents an

oligopolistic torm of market structure. Product and brand differentiation are seen as the

primary means of sustaining competitive advantage. In order to sustain brand equity,

players spend large percentages of their revenues in advertising and brand building

activities. The supply and distribution networks are decisive factors in staying competitive

and normally need a huge capital investment.

The two wheeler industry is capital intensive with large fixed cost requirements and

new model introductions mandatory at frequent intervals in order to sustain the demand.

This involves substantial design and R&D costs. Such high fixed costs can be offset only

by achieving economies of scale. Moreover, developing a distribution channel is

extremely difficult in a country like India. Therefore, it is difficult for a new player to

enter this industry.

India became the second largest two wheeler manufacturer in the world and starting

in the 1950s with the Automobile Products of India (API) that manufactured the

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Lambrettas and Bajaj Auto Ltd. with its association with Piaggio of Italy (manufacturer of

Vespa scooters) as the largest manufacturers within the country.

The license raj that existed between the 1940s to 1980s in India did not allow

foreign companies to enter the market and imports were tightly controlled. This regulatory

maze, before the economic liberalization, made business easier for local players to have a

seller's market. Customers in India were forced to wait up to 12 years to buy a scooter from

Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a

dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times

its annual output for scooters.

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CHAPTER- III

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COMPANY
PROFILE

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MDH TVS Motors Proddatur is located in Mydukur Road authorised TVS Dealer , Mdh
Bikes at Mydukur Road is a sales showroom where two-wheeler enthusiasts can choose from
a variety of motorcycles. The showroom displays a wide range of two-wheeler models both,
new and popular ones. The sales staff employed at the showroom is well-trained and
experienced. The entire team is committed to offering the best of service to its customers and
leaves no stone unturned in ensuring potential buyers find something that matches their
requirements perfectly. Their suggestions make it easier for customers to make a well-
informed decision. They are capable of providing all the necessary information with regards
to the salient features, specifications, on-road price and model availability. In addition, the
staff also furnishes important information related to loan and insurance availability.
Customers can contact the establishment for any information or visit the showroom from
morning to evening. The establishment makes the buying process seamless for customers by
accepting payments via Cash, Cheques.

Making available a wide range of two-wheelers, Mdh Bikes at Mydukur Road, Proddatur is
popular dealer of bikes. The dealer believes in the brand's approach of establishing long-
lasting relationships with its clients and it is this commitment that has led to the success of
the dealer. The showroom can be spotted with ease.

TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-wheeler
manufacturers. With a turnover of over Rs 2800 crore ($574.94 million), the company
manufactures a wide range of motorcycles, scooters, mopeds and scooterettes.

TVS Motor Company Limited is one of the largest two-wheeler manufacturers and also
among the fastest growing companies in the country. It is the largest manufacturer of sub
100cc (50cc, 60cc & 70cc category)

2-wheelers in the world. It has the unique distinction of having sold nearly 4 million mopeds
the highest ever in India. It exports its range of products to 17 countries worldwide. The
company has 4,000 highly motivated employees working in two manufacturing plants in
Hosur and Mysore.

The company manufactures motorcycles, mopeds, scooterettes and scooters. Today, there are
over thirty companies in the TVS Group, employing more than 40,000 people worldwide and
with a turnover in excess of USD 2.2 billion.

With steady growth, expansion and diversification, TVS commands a strong presence in
manufacturing of two-wheelers, auto components and computer peripherals. We also have
vibrant businesses in the distribution of heavy commercial vehicles passenger cars, finance
and insurance. was established in 1911 by Shri. T V Sundaram Iyengar. As one of India’s
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largest industrial entities it epitomizes Trust, Value and Service. TVS Motor Company
Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-
wheeler manufacturer in India and among the top ten in the world, with an annual turnover of
over USD 650 million.

The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll out
of TVS 50, India's first two-seater moped that ushered in an era of affordable personal
transportation. For the Indian Automobile sector, it was a breakthrough to be etched in
history.

TVS Motor Company is the first two-wheeler manufacturer in the world to be honored
with the hallmark of Japanese Quality – The Deming Prize for Total Quality
Management.

3.1 Milestones
Many firsts

1. India’s first 2 seater 50cc Moped TVS 50, launched in Aug 1980.

2. First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.

3. Launched India's first indigenous Scooterette (sub-100cc variomatic scooters), TVS

Scooty in June 1994.

4. Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in
Dec 1996.

5. Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.

6. Launched TVS Fiero, India’s first 150 cc, 4 stroke motorcycles in April 2000.

7. Launched TVS Victor, 4-stroke 110 cc motorcycles, in August 2001; India’s first
fully indigenously designed and manufactured motorcycle.

8. Launched TVS Centra in January 2004, a world-class 4-stroke 100 cc motorcycle

with the revolutionary VT-i Engines for best-in-class mileage.

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9. Launched TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for rough
terrain.

3.2 Network

TVS Motor Company has one of the most extensive networks with over 500 dealers and 2500
Customer touch points. We are the first in the two-wheeler industry to measure customer
satisfaction, audited by external consultants of international repute.

We have taken care to standardize facilities across all customer touch points. Up gradation of
facilities and continuous improvement in all processes is given importance. The company
also takes an active part in imparting training and capability building in all areas including
sales, service and business management.

All our dealers are connected through the extended network of SAP, ensuring operational
efficiency.

3.3 Supply Chain Management

Forming the inner rung of the extended TVS family, our suppliers are involved at every stage
of product development.

We extend core values and best practices to all our suppliers. Through continuous training
forums we impart TPM (Total Productivity Maintenance) and JIT (Just in Time) practices.

Our suppliers are committed to quality through continuous improvement and up gradation of
processes. This has helped them obtain prestigious international certifications like ISO 9000,
QS 9000 & TS 16949.

We also facilitate knowledge sharing by reputed international consultants in order to build &
enhance management expertise within our supplier base.

Product Profile:

The TVS products are very use friendly. There are various kinds of vehicles are there in TVS
brand. So the customers can able to purchase the vehicle according to their wish.

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BALANCE SHEET ANALYSIS

TVS 50
This has engine capacity of 50cc it’s very comfortable for lower class and middle class
people .We can able to ride this vehicle on any kinds of road .This can be serviced by
ordinary mechanics to professionals and even owners.

TvsScooty
This has as an engine capacity of 80cc .It’s very comfortable for ladies. Because of its low
maintenance, good mileage and favor price. In scooters, different variants of TVS Scooty
clocked 16,052 units of sales in February 2006 compared to 15,900 units.

Tvs Victor
This is a four–stroke bike with the engine capacity of 110cc.highly mileage of 70
km\liter .The feature involved in the customer purchase was style,colour,performance etc.
This bike having special technology of mode indicators (Economy, Power).This is a fastest
moving bike among TVS motors.

Tvs Apache
This is a four –stroke bike with the engine capacity of 150cc. The company claimed that
Apache would give 60 km per liter on normal conditions. Apache is powered by 13.5 Brake
Horse Power (BHP) engine. Apache will sports wide tyres in black alloy wheels of 17-inch in
the front and 18-inch at the rear to facilitate greater road grip. Apache comes with an
Inductive Digital Ignition (IDI) technology that gives a host of benefits to the rider including
excellent engine response, consistent fuel economy and good 'cold start

ability'. The Business Standard Motoring Bike of the Year 2006 is the superb new
TVS Apache.

Tvs Star City

This is a four–stroke bike with the engine capacity of 100cc.highly mileage of 70 km\liter

.The feature involved in the customer purchase was

style,colour,performanceetc..This is a fastest moving bike among TVS motors in
both urban and rural areas. During February, TVS StaR City continued its steady
growth and together with the StaR brand has helped TVS M garner over 27 per cent
market share in the economy segment. The economy segment accounts for about 39
per cent of the total motorcycle category.

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BALANCE SHEET ANALYSIS

3.4 Tvs Motor Company

TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-wheeler
manufacturers. With a turnover of over Rs.2700 crores, the Company manufactures a wide
range of motorcycles, scooters, mopeds and scooterettes. Little wonder, it boasts of more than
7 million happy customers.

The chapter called two wheelers in India begins…..

The year was 1980. And it is a year to remember for the Indian two-wheeler industry. For it
was this year that saw India's first two-seater moped, TVS 50, rolling out on the Indian roads.
For some it was freedom to move. For some, shorter distances to span. For the Indian
Automobile sector, a breakthrough to be etched in history.

With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the first
Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984. Through
an amicable agreement the two companies parted ways in September 2001.

Unmatched Performance

Today TVS Motor Company has the largest market share in the moped category with a
whopping 65.3% and is also the undisputed leader in the scooterette segment with 34.3%
share. It also holds 18.3% market share in motorcycles.

3.5Wide Network

With a strong sales and service network of 500 Authorized Dealerships, 1018 Authorized
Service Centres and over 864 Certified Service Points, TVS is growing from strength to
strength.

3.6World Class Facilities

The company manufactures its motorcycles, scooterettes and mopeds at its state-of-the-art
factories in Mysore and Hosur.

3.7Product Range

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BALANCE SHEET ANALYSIS

TVS offers a wide range of two-wheelers

Motorcycles - TVSCentra / TVS Victor / TVS Fiero F2/ TVS Max 100/ TVS Max 100 R

- Scooterettes - TVS Scooty Pep/ TVS Scooty 2S

- Mopeds - TVS XL Super/ TVS XL Super HD

3.8 VISION

TVS Motor - Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its core competence
and profitability. TVS Motor will provide total customer satisfaction by giving the customer
the right product, at the right price, at the right time.

TVS Motor- The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and one
among the top five two-wheeler manufacturers in Asia.

TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing
on the expertise developed in the areas of manufacturing, technology and marketing. The
thrust will be to achieve a significant share for international business in the total turnover.

TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking
against international leaders.

TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting

TQM as a way of life. TVS Motor believes in the importance of the process. People and
projects will be evaluated both by their end results and the process adopted.

TVS Motor - The Human Factor

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BALANCE SHEET ANALYSIS

TVS Motor believes that people make an organization and that its well-being is dependent on
the commitment and growth of its people. There will be a sustained effort through systematic
training and planning career growth to develop employees' talents and enhance job
satisfaction. TVS Motor will create an enabling ambience where the maximum self-
actualization of every employee is achieved. TVS Motor will support and encourage the
process of self-renewal in all its employees and nurture their sense of self worth.

TVS Motor- Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects
with all business activities and ensures protection of employees and environment including
development of surrounding communities. TVS Motor strives for long-term relationships of
mutual trust and inter- dependence with its customers, employees, dealers and suppliers.

3.9 Milestones

Launched Centra in January 2004, a TECHNOLOGY Uncompromising Quality,

Technology
TVS Motor Company's R&D division has an imposing pool of talent and one of the most
contemporary labs, capable of developing innovative designs.
Committed to achieving total customer satisfaction through Total Quality Control (TQC), the
Company continuously strives to give the customer, the best value for money.

Eco-Friendly

TVS is committed to protecting the environment. The company's manufacturing facilities at

Mysore & Hosur have state-of-the-art facilities & air pollution control measures. Even the
suppliers are encouraged to ensure that their products meet eco-friendly norms.

Always First

Launched TVS 50, India's first 2-seater, 50cc moped in Aug 1980.
First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.
Launched India's first indigenous Scooterette, TVS Scooty in June 1994.
Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in
Dec1996.Launched India's first 5-speed motorcycle, the Shaolin in Oct1997.
- Launched India's first high performance moped - the XL Super, with a 70 cc engine in

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BALANCE SHEET ANALYSIS

Nov1997.Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.

World-class 4-stroke 100 cc motorcycle with VT-i Engines for best-in-class mileage.

3.10 Awards Deming Award

TVS Motor is the third Indian company to win the Deming Prize. Only two other
TVS companies have managed this before.
It's been a long time since the Union of Japanese Scientists and Engineers
instituted the Deming Prize. But very, very few organizations outside Japan have had the
honor of receiving it. In fact, the

TVS Motor Company is the world's first motorcycle company to be awarded the prize.

As for the TVS Group, it's a third. Sundaram-Clayton Ltd. (Brakes Division) and
Sundaram Brake Linings Ltd. have already won it. The Deming Prize is the ultimate
confirmation of our commitment to quality control. A confirmation known to every TVS
rider across the country.

TVS Motor Company unveils TVS Centra with 'VT-i Engines'

Creates History in the Technology Frontier of the

Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark in 40
days Hosur, March 6, 2004: TVS Motor Company today announced that the sales of TVS
Centra, powered by the indigenously developed Variable Timing Intelligent (VT-i) engine
technology crossed 20,000 units in just 40 days since its launch in mid January 2004, the best
ever clocked by any new product from the TVS Motor Company stable. This achievement is
expected to spiral the overall growth of TVS Motorcycles sales in the coming months.

The impressive sales figures reflect the customer's faith in the technological capability of
TVS Motor Company to fully live up to its promise of delivering a world-class product at an
affordable price. Due to excellent customer feedback across the country, TVS dealers are
being pressurized with enquiries on the new 100 CC 4 Stroke Centra and its revolutionary
VT-i engine technology. Having caught the public's imagination, TVS Centra has fully lived
up to its promise of a 'Fill it Once a Month Bike' where a full tank of petrol lasts for a month
based on the average use of motorcycle customers.
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BALANCE SHEET ANALYSIS

A panel of leading auto experts in India, after having tested TVS Centra, have endorsed the
fact that it was the 'best in its class' and also commended TVS Motor Company on its
technology prowess and innovation.

TVS Centra is powered by VT-i engines which are designed to deliver superb performance
on fuel efficiency and torque delivery based on three fundamental actions namely variable
ignition timing and superior combustion of fuel, friction reduction and fuel wastage
reduction.

Added to its technological edge are features that include attractive price, fuel efficiency, low
maintenance, contemporary style, ride comfort and backed by TVS Motor Company's
reliability, making it truly the preferred two-wheeler in its class.

Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor Company's
commitment to produce the best technology in its products for its customers has led to the
launch of TVS Centra with Variable Timing intelligent engines

(VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment.

This revolutionary new VT-i engine technology, developed indigenously by TVS Motor
Company, inbuilt into TVS Centra will make it the most fuel-efficient motorcycle in the
Country. It will be rightfully called as the 'Fill it Once a Month Bike' where a full tank of
petrol will last for a month based on the average use of motorcycle customers.

The VT-i Engines by TVS Motor Company will go down in the history of the Automobile
Industry in India as one of the most innovative technology

developed indigenously. The VT-i engines are designed to deliver superb performance on
fuel efficiency and torque delivery based on three fundamental actions namely variable
ignition timing and superior combustion of fuel, friction reduction and fuel wastage

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BALANCE SHEET ANALYSIS

reduction. This action facilitates deceleration fuel cut off, faster warm up of the Engine and
has four curve ignition mapping

Like all TVS Motor Company products, TVS Centra too has been engineered and designed
keeping in mind extensive customer feedback and changing customer needs. TVS Centra will
be the first motorcycle in India that will bundle price, mileage, maintenance, style, reliability,
power, ruggedness and ride comfort making it truly a value for money personal transportation
two-wheeler. Those who want all these performance attributes in a commuter motorcycle at a
great price; nothing will beat the TVS Centra for all the advantages it offers.

TVS Centra is built around to give a mileage that will offer atleast 10 per cent more than any
other motorcycle in the country, today. It will be powered by 7.5 Brake Horse Power (Bhp) at
7250 RPM making it the most powerful motorcycle in its class. TVS Centra will also be
known for its nimble handling and riding comfort enabling easy maneuvering even in busy
city traffic. Its contemporary style with big muscular tank and well-rounded looks with a
horizontal engine and superior ergonomics will mark a new standard in the popular segment
of two wheelers. It will come with Econometer to keep a check on the mileage / power ratio,
wide and skid free seat and Utility space.

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BALANCE SHEET ANALYSIS

CHAPTER-IV

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BALANCE SHEET ANALYSIS

DATA ANALYSIS
&
INTERPRETATIONS

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BALANCE SHEET ANALYSIS

4.1. BALANCE SHEET STATEMENT FOR THE YEAR

ENDING 2018 & 2019
PARTICULARS YEAR YEAR INCREASE/ INCREASE/
ENDED ENDED DECREASE DECREASE
31/03/2018 31/03/2019 IN PERCENTAGE
IN LAKHS
LAKHS
I EQUITY AND
LIABILITY
(1) Shareholders'
Funds
a.share capital 8641.84 8997.07
b.Reserves and
Surplus 13474.19 17246.97
c.Money received
from related
parties received
against share - 767.53
warrents 22116.03 27011.57 48.9554 18.12%

(2) Share
application
Money pending - -
allotment
(3)Non-Liabilities 13207.79 11018.68
a. long term
borrowings 7425.04 6863.39
b. Deferred tax
liabilities(net) - -
c .Other Long
-term Liabilities 20632.83 17882.07
d. long-term -27.5076 -15.38%
provisions
(4) Current
Liabilities
a.short-term 20737.66 16484.81
borrowings 7667.8 7471.13
b.Trade payables
c.Other current 7655.47 8054.84
Liabilities 575.58 832.07
36636.51 32842.85

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BALANCE SHEET ANALYSIS

d.Short-term -37.9366 -11.55%

provisions

79385.37 77736.49
Total -1648.88 -2.07%

Particulars Year Ended Year Ended Increase/Decrease %

2015 2016 Increase/Decrease
II ASSETS
(1) Non-
Current Assets
a.Fixed Assets
(i)Tangible 45983.26 45565.2
Assets
(ii)Intangible - -
Assets
(iii)Capital
work in 5261.48 6952.41
progress 51244.74 52517.61 1272.87 2.42%
(iv)Intangible
Assets under - -
development
b.Non-
Current 198.82 170.79 -28.03 -16.41%
Investments
c.Deferred tax - -
Assets(net)
d.Long-term 2570.64 4883.06 2312.42 47.35%
Loanns and
Advances
e.Other non- - -
current assets

(2) Current
Assets
a.Current - -
Investments
b. Inventories 7701.61 6075.00
c.Trade 6623.27 5970.26
receivables
d.Cash and 3078.90
Cash equalities 5955.69
e.Short term
loans and 2294.82
3106.9
advances

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BALANCE SHEET ANALYSIS

1983.70 2746.05
25371.17 20165.03
f.Other current -5206.14 -25.81%
assets

Total 79385.37 77736.49 -1648.88 -2.12%

TABLE 4.1

2015 2016 INCREASE/DECREASE %

AMOUNT
CURRENT 25371.17 20165.03 -5206.14 -25.81%
ASSETS
CURRENT 36636.51 32842.85 -37.9366 -11.55%
LIABILITIES
FIXED 51244.74 52517.61 1272.87 2.42%
ASSETS

INTERPRETATION:

1. The Current Assets are decreased 25371.17 to 20165.03 and Current liabilities

are decreased 36636.51 to 32842.85 in the year 2018-2019.

2 The Fixed Assets are increased 51244.74 to 52517.61 in the year 2018-2019

3. The Financial Position is not good.

4.2 BALANCE SHEET STATEMENT FOR THE YEAR

ENDING 2019 & 2017

PARTICULARS Year Ended Year Ended INCREASE INCREASE

31/03/2019 31/03/2017 / /
In In DECREASE DECREASE
Lakhs Lakhs / %
I EQUITY AND
LIABILITY
(I)Shareholder's
Funds
a.Share Capital 8997.07 9370.99
b.Reserves and
Surplus 17246.97 17724.15
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BALANCE SHEET ANALYSIS

c.Money received
from related
parties Received
against share 767.53 393.60
warrents
27011.57 27488.74 477.17 1.73%

(2) Share
application money
pending allotment - -

(3) Non-Current
Liabilities
a.Long term 11018.68 10910.48
borrowings
b.Deferred tax 6863.39 6631.65
liabilities(net)

c.Other Long- - -
Term Liabilities

d.Long term - -
Provisions 17882.07 17542.13 -339.94 -1.93%
(4) Current
Liabilities 16484.81 15174.66
a.Short Term
borrowings 7471.13 7582.23
b.trade payables
c.Other current 8054.84 11701.88
Liabilities 832.07 150.44
d.Short Term
32842.85 34609.21
provisions
1766.36 5.10%
77736.49 79640.08
TOTAL 1903.59 2.39%

PARTICULARS Year Ended Year Ended INCREASE INCREASE

31/03/2019 31/03/2017 / /
In In DECREASE DECREASE
Lakhs Lakhs / %
II ASSETS
(I) Non-Current
Assets
a.Fixed Assets
(i)Tangible Assets 45565.2 43103.37

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BALANCE SHEET ANALYSIS

(ii)Intangible -
Assets
(iii)Capital work 6952.41 12632.16
in progress
(iv)Intangable - -
Assets under
development 3217.92 5.77%

b.Non-current 0.3 0.17%

Investments
c.Deffered Tax
Assets(net)
d.long term loans -989.18 24.40%
and Advances
e.Other non- 52517.61 55735.53
current assets

(2)Current Assets 170.79 171.09

a.Current
Investments - -
b.Inventories
c.Trade 4883.06 3893.88
Receivables
d.Cash and Cash - -
equalities
e.Short Term
loans and
Advances - -
f.Other current
assets 6075.00 6248.75
-325.45 -1.64%
5970.26 5348.52

TOTAL 2294.82 2090.92 1903.59 2.39%

2294.82 2090.92

2746.05 4057.81
20165.03 19839.58

7736.49 49640.08

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BALANCE SHEET ANALYSIS

TABLE 4.2

2019 2018 INCREASE/DECREASE %

AMOUNT
CURRENT 20165.03 19839.58 -325.45 1.64%
ASSETS
CURRENT 32842.58 34609.21 1766.36 5.10%
LIABILITIES
FIXED 52517.61 55735.53 3217.92 5.77%
ASSETS

INTERPRETATION:

1.The Current Assets are decreased 20165.03 to 19839.58 in the year 2016-2017
and Current Liabilities are increased 32842.85 to 34609.21 in the year 2016 to
2017.

2 The Fixed Assets are increased 52517.61 to 55735.53 in the year 2016-2017.

3. The financial Position is not good.

4.3 BALANCE SHEET STATEMENT FOR THE YEAR

ENDING 2017 & 2018
PARTICULARS Year Year Ended Increase/ INcreas
Ended 2018 Decrease e/Decre
2017 ase%
1.EQUITY AND
LIABILITY

(1) Share Holder’s

funds 9370.99 9764.60
a. Share Capital 17724.15 19939.3
b. Reserves and
Surplus 393.60 -
c. Money received
from related
parties received 27488.74 29703.90 2215.16 7.45%

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BALANCE SHEET ANALYSIS

againstshare
warrents

(2) Share application

money pending - -
allotment
(3) Non-current 10910.4 979.75
Liabilities
a.Long-Term 6631.65 6879.17
Borrowings
b.Deferred tax - -
liabilities(net)
c.Other Long-term
Liabilities - -

d.long-term
Provisions 17542.13 16672.92
-869.21 -5.21%

(4) Current Liabilities 15174.66 17529.92

7582.23 5606.43
a.Short-Term
borrowings 11701.88 11581.63
b.trade Payables 150.44 721.2
c.Other Current 34609.21 35439.19
Liabilities 829.98 2.34%
d.Short-term 79640.08 81816.01
Provisions 2175.93 2.65%

Total Year ended Year Ended

2017 2018 Increase/ Increase/
Decrease Decrease
PARTICULARS %

II ASSETS 43103.47 44446.12

(I) Non-Current Assets - -

a. Fixed Assets
(i) Tangable Assets 12632.16 12391.98
(ii) Intangable - -
Assets
55735.53 56838.10

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BALANCE SHEET ANALYSIS

(iii)Capital work in 171.09 1102.57 1.93%

Progress 171.09
(iv) Intangible Assets - 0 0.00%
under development -
b.Non-current
Investments 3893.88 3763.93
c.Deferred tax
Assets(net) - - -129.95 3.45%
d. Long term loans
and Advances
e. Other non-current
assets

(2) Current Assets 6248.75 4304.10

a.Current 5348.52 5274.10

Investments
b.Inventories 2203.58 3313.81

cTrade Receivables 2090.92 2394.38

d.Cash and Cash 4057.81 5756.5
equalities 19839.58 21042.89

e.Short term loans 1203.31 5.71%

and advances
79640.08 81816.01
f.Other current assets
2175.93 2.65%

TOTAL

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 BALANCE SHEET ANALYSIS

TABLE 4.3

2017 2018 INCREASE/DECREASE

AMOUNT %
CURRENT
ASSETS 19839.58 21042.89 1203.31 5.71%
CURRENT
LIABILITIES 34609.21 35439.19 829.98 2.34%
FIXED
ASSETS 55735.53 56838.1 1102.57 1.93%

INTERPRETATION:
1. The Current Assets are increased 19839.58 to 66036.03 in the year 2017-2018.
Current Liabilities are increased 34609.21 to 35439.19 in the year 2017-2018.

2. The Fixed Assets also increased 55735.53 to 56838.10 in the year 2018.

3. The financial position is good.

4.4 BALANCE SHEET STATEMENT FOR THE YEAR

ENDING 2018 & 2019

PARTICU YEAR YEAR INCREASE/ INCREASE/DECREASE

LARS ENDED ENDED DECREASE PERCENTAGE
31/03/2018 31/03/2019
IN IN
LAKHS LAKHS
I EQUITY AND
LIABILITY
(1) Shareholder's
funds
a.Share Capital 9764.60 10178.92
b.Reserves and
Surplus 19939.3 22668.65
c.Money
received
from related - -
29703.90 33755.29

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BALANCE SHEET ANALYSIS

parties Received
against share - -
warrents 4051.39 12.00%

(2)Share 16004.93
9793.75
6959.33
application 6879.17

money pending - -
allotment - -
16672.92 22964.26

(3)Non-current
Liabilities
a. long term
17529.92 22467.43
borrowings
5606.43 6537.65
b. Deferred
11581.63 10703.51
tax
Liabilities(net) 721.21 728.54

c. Other long- 35439.19 40437.13

term Liabilities 81816.01 97156.68 6291.34 27.39%

d. Long-term
provisions

(4) Current
Liabilities

a. Short-
Term
borrowings

b. Trade
Payables
c. other 4997.94 12.35%
current

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BALANCE SHEET ANALYSIS

Liabilities 15340.67 15.78%

d. Short Term
Provisions

TOTAL

Particulars Year Year Ended Increase Increase/

Ended 2019 / decrease
2018 decrease percentage
II ASSETS

(I) Non-current Assets

a. Fixed Assets
(i)Tangible Assets 44446.12 66036.03
(ii)Intangible - -
Assets
(iii)Capital work in 12391.98 -
56838.10 66036.03
progress 9197.93 13.92%
(iv)Intangible 171.09 171.09
Assets under - - 0.1 58.00%
development
3763.93 4135.31
b. Non-Current
- -
Investments
c. Deferred tax 371.38 8.98%
Assets(net)
d.Long term loans
and Advances 6977.14
4304.10 6497.77
e.Other non-current 5274.10
4217.25
assets 3313.81
1989.24
2394.38
(2) Current Assets 1989.24
5756.5

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 BALANCE SHEET ANALYSIS

21042.89 26814.15
a.Current
81816.01 97156.68
Investments
b.Inventories
c.Trade Receivable
d.Cash and cash
equalities
e.Short term loans
and advances
f.other current
assets 5771.26 21.52%

TOTAL 15340.67 15.78%

TABLE 4.4

2018 2019 INCREASE/DECREASE %

AMOUNT
CURRENT 21042.89 26814.15 5771.26 21.52
ASSETS
CURRENT 35439.19 40437.13 4997.94 12.35
LIABILITIES
FIXED 56838.10 66036.03 9197.93 13.92
ASSETS

INTERPRETATION:
1.The Current Assets are inreased 21042.89 to 26814.15 and Current Liabilities are

increased 35439.19 to 40473.13 in the year 2018-2019

2.The Fixed Assets are increased 56838.10 to 66036.03 in the year 2018-2019.

3. The Financial Position is good.

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BALANCE SHEET ANALYSIS

4.5 BALANCE SHEET STATEMENT FOR THE YEAR

ENDING 2018-2019
TABLE 4.5

2015 2016 2017 2018 2019

CURRENT 25371.17 20165.03 19839.58 21042.89 26814.15
ASSETS
CURRENT 36636.51 32842.85 34609.21 35439.19 40437.13
LIABILITIE
S
FIXED 51244.74 52517.61 55735.53 56838.1 66036.03
ASSETS

INTERPRETATION:
 The Current Assets and Current Liabilities are highly decreased in 2018
-2019.fixed Assets and increases.
 The Current Assets are decreased in 2016-2017. Current Liabilities and Fixed
Assets are increased in 2016-17 compare to 2018-16.
 The Current Assets, Current Liabilities and Fixed Assets are increased in 2017-
2018.
 The Current Assets, Current Liabilities and Fixed Assets are increased in 2018-
2019.

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BALANCE SHEET ANALYSIS

CHAPTER -V

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BALANCE SHEET ANALYSIS

FINDINGS

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BALANCE SHEET ANALYSIS

5.1: FINDINGS

 Comparing the Current Assets from 2018-2019 with the help of Balance Sheet
there is fluctuations in total Current Assets.
 Current Assets are highly decreased in the year 2018-16. Compare to the last
year.
 Current Assets are slightly increased in the year 2016-14.
 Current Assets are increased in the year 2014-15,Current Liabilities Are
increased in the year 2017-2018.Fixed Assets are also increased in the year
2017-2018.
 Current Liabilities are high in 2018-16 Compare to past 4 years.
 Fixed Assets between 2018-2019 have increased except in 2018-2019.

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BALANCE SHEET ANALYSIS

SUGGESTIONS

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BALANCE SHEET ANALYSIS

5.2: SUGGESTIONS

 To make the current Financial Position More effective, the contribution of

traditional items like debtors, cash balance should be increased considerably
rather than other current assets
 The firm should focus on the Current Assets and Current Liabilities.
 The firm should continue the fixed Assets.
 The firm should continue the fixed Assets.
 The firm should concentrate on controlling the short term borrowings. which is
also High in findings.
 The firm should also concentrate on its marketing because of recent Competition
from other firms.

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BALANCE SHEET ANALYSIS

CONCLUSION

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5.3:CONCLUSION:

The following conclusion are arrived based on the observations made on the present
study. Except during the year (2018-14) of the study period it is observed that the financial
position of the company is good.

SRAAC LTD has not reached its level of competence and breadth of experience
with facing problems, several challenges that came in its way had been faced with confidence
and over, its achievements need to be absloved in proper perspective.

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CHAPTER-VI

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 BALANCE SHEET ANALYSIS

6.1:SECONDARY DATA

BALANCE SHEET .......In Rs.Cr

Mar - 15 Mar -16 Mar -17 Mar - 18 Mar -19

Sources of Funds
Total capital share 86.42 89.97 93.71 97.65 101.79
Equity Share Capital 67.54 71.09 74.83 78.76 82.91
Share Application Money 0 7.68 3.94 0 9.08

Preference Share Capital 18.88 18.88 18.88 18.88 18.88

Reserves 134.74 172.47 177.24 199.39 226.69
Net Worth 221.16 270.12 274.89 297.04 337.56
Secured Loans 320.05 259.12 236.4 246.54 374.88
Unsecured Loans 19.4 15.92 24.46 26.7 9.84
Total Debt 339.45 275.04 260.86 273.24 384.72
Total Liabilities 560.61 545.16 535.75 570.28 722.28
Application Of Funds
Gross Block 846.65 992.97 900.77 953.94 1,210.17
Less:Accum.Depreciation 386.82 427.32 469.74 509.48 549.81
Net Block 459.83 455.65 431.03 444.46 660.36
Capital Work in progress 52.61 69.52 126.32 123.92 0
Investments 1.99 1.71 1.71 1.71 1.71
Inventories 77.02 60.75 62.49 43.04 69.77
Sundry Debtors 66.23 59.7 52.49 52.74 64.98
Cash and Bank Balance 59.56 30.79 22.04 33.14 42.17
Total Current Assets 202.81 151.24 137.02 128.92 176.92
Loans and Advances 76.62 99.24 100.33 119.15 132.58
Total CA,Loans &Advances 279.43 250.48 237.35 248.07 309.5

Current Liabilities 227.48 223.89 259.16 240.67 242

Provisions 5.76 8.32 1.5 7.21 7.29
Total Cl & Provisions 233.24 232.21 260.66 247.88 249.29
Net Current Assets 46.19 18.27 -23.31 0.19 60.21
Total Assets 560.62 545.15 535.75 570.28 722.28

Contingent Liabilities 87.31 91.61 70.02 102.3 100.25

Book Value (Rs) 29.97 3428 33.71 35.33 37.36

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BIBLIOGRAPHY

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BALANCE SHEET ANALYSIS

6.2: BIBLIOGRAPHY:
REFERENCES:
 I.M. Pandy (Financial Management) Vikas Publishing House, 9th Edition. page
no:7.2
 P.PremChand Babu (Financial Accounting Analysis), Himalaya Publishing House,
Edition 2008.Page no: 7.12
 M.Madam Mohan (Financial Accounting Analysis), Himalaya Publishing House,
Edition 2008.
 C.R.Kothari, Research Methodology,Vishwa Prakash House, 12 th
Edition, page
no:333

WEB SITES:

 www.tgvgroup.in
 www.moneycontrol.in
 www.chemicalindustries.in

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