Professional Documents
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case study on
Scooter India limited
PRESENTED TO : PRESENTED BY :
Prof. Harsha Jariwala 1.Riyaz
V.M.P.I.M 2.Vishal
G.N.U 3.Mukesh
KHERVA . 4.Savan
Content
History of company
Scooter India was est. by GOI in 1972, as a
PSU.
140
120
debt/equity
100
80
debt/equity
60
40
20
0
1979- 1980- 1981- 1982- 1983- 1984-
80 81 82 83 84 85
year
Cont…..
From exhibit 4 we can see that debt is increasing
in respect of equity.
Equity remain same for all the year. It is 50 lakhs.
Major reason in increase is losses incured by the
company.
Because of losses company can not pay aloan
taken from financial institute rather they have to
go for funding by borrowing.
So debt/equity ratio increasing every year,so
company reputation decreases so funding from
equity is not possible.
4. Profitability ratio
Company continuously witnessed losses from
1980-85.
profitabilityratio
5000
4000
rs in lakhs
3000
year
2000
expences
1000
loss
0
0
5
-8
-8
-8
-8
-8
-8
-1000
9
4
7
8
9
-2000
1
year
Action plan
profit