A PROJECT REPORT ON

DIVIDEND POLICY AND WORKING

CAPITAL MANAGEMENT ANALYSIS
OF AUTOMOBILE INDUSTRY







SUBMITTED TO: SUBMITTED BY:
PROF. PRASHANT SHARMA






ABHISHEK KUMAR
ADARSH SINGH
ANKISHA THAPA
ALYONA SARKAR
GARIMA JHAWAR
HIMANSHU JOSHI
ROHIT JANGID
SAUMYA AGNIHOTRI





CONTENTS


ACKNOWELEDGEMENT
DECLARATION
INTRODUTION
CONCLUSION




















ACKNOWLEDGEMENT

In making this project we have taken help from various sources and also have
taken some resources from different books and sites.
We are also very much thankful to our professor Mr Prashant Sharma, for
there intense and caring support towards our project and report formation. We
are thankful to each and every body who have supported us to fulfil the details
and submission of this whole project.
We are also thankful to our institute, Jaipuria institute of management, for
their immense support in building the project and putting their effort to let us do
our work in the premises of the college and let us take the help from all the
concerning faculties.















DECLARATION

We hereby declare that the work entitled DIVIDEND POLICY AND
WORKING CAPITAL MANAGEMENT ANALYSIS OF AUTOMOBILE
INDUSTRY submitted to "Prof. PRASHANT SHARMA" is a record of an
original work done by us under his guidance of "FINANCAIAL
MANAGEMENT-1" subject of PGDM batch 2013-15 in "Jaipuria Institute of
Management, Jaipur". This project work is submitted in the partial fulfilment of
the requirement for award of post graduate diploma in management and
communication. The result embodied in this project has not been submitted to
any other institute for the award of any diploma.


PLACE: JAIPUR GROUP 11:
JAIPURIA INSTITUTE OF MANAGEMENT ABHISHEK KUMAR
ADARSH SINGH
ANKISHA THAPA
ALYONA SARKAR
GARIMA JHAWAR
HIMANSHU JOSHI
ROHIT JANGID
SAUMYA AGNIHOTIR

DATE: 02/04/2014





OBJECTIVE

The study aims :
To find out the dividend structure of automobile industry (individual 16
companies).
To find out the working capital management practices of automobile
industry.
To suggest the policy recommendation for sample firms based on the
findings on dividend policy and working capital management practices.





















INTRODUCTION

The automobile sector is divided into 4 segments- two wheelers (mopeds,
scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger
cars, utility vehicles, multi-purpose vehicles), commercial vehicles (light and
medium-heavy vehicles), and three wheelers (passenger carriers and good
carriers).
The industry is one of the key drivers of economic growth of the nation. Since
the de-licensing of the sector in 1991 and the subsequent opening up of 100
percent FDI through automatic route, Indian automobile sector has come a long
way. Today, almost every global auto major has set up facilities in the country.
The world standings for the Indian automobile sector, as per the Confederation
of Indian Industry, are as follows:
Largest three-wheeler market
Second largest two-wheeler market
Tenth largest passenger car market
Fourth largest tractor market
Fifth largest commercial vehicle market
Fifth largest bus and truck segment

The auto sector reported a robust growth rate of 26 percent in the last two years
(2010-2012). The BSE AUTO Index outperformed the benchmark Nifty by
79%, 12% and 19% in FY10, FY11 and FY12, respectively.
However, the sector has shown a sluggish growth of 12 percent in 2012. The
trend is likely to stay with a 10 percent growth outlined for 2013 citing high
ownership costs (fuel costs, cost of registration, excise duty, road tax) and slow
rural income growth. Solid but cautious growth is expected over the next few
years. However, from a long-term perspective, rising incomes, improved
affordability and untapped markets present promising opportunities for
automobile manufactures in India. According to Macquaire equities research,
sale of passenger vehicles is expected to double in the next four years and
growth anticipated is higher than the 16 percent achieved in the past 10 years.
Two-wheeler vehicle segment is expected to show slow growth of 10 percent
CAGR over the period of 2012-2016, suggests the report.
The Government recognizes the impact of the sector on the nations economy,
and consequently, the Automotive Mission Plan 2016 launched by it seeks to
grow the industry to a size of US $145bn by 2016 and make it contribute 10
percent to the nations GDP.



Factors that will drive growth in the sector

Rising incomes among Indian population will lead to increased affordability,
increasing domestic demand for vehicles, especially in the small car segment.
Fuel economy and demand for greater fuel efficiency is a major factor that
affects consumer purchase decision that will bring leading companies across
two-wheeler and four-wheeler segment to focus on delivering performance-
oriented products.
Product innovation and market segmentation will channelize growth. Vehicles
based on alternative fuels will be an area of interest for both consumers and auto
makers.
Focus on establishing India as auto-manufacturing hub is reigning in policy
support in form of Governments technology modernisation fund.
Industry will seek to augment sales by tapping into rural markets, youth, women
and luxury segments.




Revenues
The gross turnover of automobile manufacturers in India expanded at a compound annual
growth rate (CAGR) of 17.7 per cent over FY07-11.




Market Segments
Two wheelers segment accounted for about three quarters of the total automotive production
in the country during FY13.






Growth
Auto sales across categories are estimated to grow by 6-8 per cent in FY14.



For our project, we have taken 16 samples of the auto industry with their data
ranging from 2003-2012.
These industries are:
Ashok Leyland
Ltd.

Atul Auto Ltd.
Eicher Motors
Ltd.

Force Motors
Ltd.

Hero Motocorp
Ltd.

Hindustan
Motors Ltd.

L M L Ltd.
Maruti Suzuki
India Ltd.

Tata Motors Ltd.
S M L isuzu
Bajaj auto
Escorts ltd
Hmt ltd
kinetic engg
majestic auto
Tvs motors

We have tried to show their dividend policy and working capital of these firms.

Dividends - Dividend Policy
Dividend policy is the set of guidelines a company uses to decide how much of
its earnings it will pay out to shareholders. Some evidence suggests that
investors are not concerned with a company's dividend policy since they can sell
a portion of their portfolio of equities if they want cash. This evidence is called
the "dividend irrelevance theory," and it essentially indicates that an issuance of
dividends should have little to no impact on stock price. That being said, many
companies do pay dividends, so let's look at how they do it.

There are three main approaches to dividends: residual, stability or a hybrid of
the two.

Residual Dividend Policy:

Companies using the residual dividend policy choose to rely on internally
generated equity to finance any new projects. As a result, dividend payments
can come out of the residual or leftover equity only after all project capital
requirements are met. These companies usually attempt to maintain balance in
their debt/equity ratios before making any dividend distributions, deciding on
dividends only if there is enough money left over after all operating and
expansion expenses are met.

Dividend Stability Policy:

The fluctuation of dividends created by the residual policy significantly
contrasts with the certainty of the dividend stability policy. With the stability
policy, quarterly dividends are set at a fraction of yearly earnings. This policy
reduces uncertainty for investors and provides them with income.

Hybrid Dividend Policy:

The final approach is a combination between the residual and stable dividend
policy. Using this approach, companies tend to view the debt/equity ratio as a
long-term rather than a short-term goal. In today's markets, this approach is
commonly used by companies that pay dividends. As these companies will
generally experience business cycle fluctuations, they will generally have one
set dividend, which is set as a relatively small portion of yearly income and can
be easily maintained. On top of this set dividend, these companies will offer
another extra dividend paid only when income exceeds general levels.

The dividend policy of a company determines what proportion of earnings is
distributed to the shareholders by way of dividends, and what proportion is
ploughed back for reinvestment purposes. Since the main objective of financial
management is to maximize the market value of equity shares, one key area of
study is the relationship between the dividend policy and market price of equity
shares. Dividend policy connotes to the pay-out policy, which managers pursue
in deciding the size and pattern of cash distribution to shareholders over time
(Davis 2006). Since managements primary goal is shareholders wealth
maximization, which translates into maximizing the value of the company as
measured by the price of the companys common stock. This goal can be
achieved by giving the shareholders a fair payment on their investments.
However, the impact of firms dividend policy on shareholders wealth is still
unresolved. Capstaff, Klaeboe, and Marshall, (2004) defines dividend policy
under the relevance theory as, The dividend policy is a practical approach,
which treats dividends as an active decision variable and retained earnings as
the residue. Dividends are more than just a means of distributing net profit, and
that any variation in dividend pay-out ratio could affect share prices; a firm
should therefore endeavour to establish an optimal policy that will maximize
shareholders wealth. Dividend policy has been an issue of interest in financial
literature since Joint Stock Companies came into existence. Dividend policy
suggests a positive attitude for, it is a deliberate policy to maintain or increase
dividend at a certain level with the ultimate aim of sustaining the price of the
ordinary shares on the stock exchange. This is because capital markets 643 PJ
Bus. Admin. Manage. are not perfect, although shareholders are indifferent
between dividend and retained earnings due to market imperfections and
uncertainty, but they give a higher value to the current year dividend than the
future dividend and capital gains. Dividend policy can be of two types:
managed and residual. In residual dividend policy the amount of dividend is
simply the cash left after the firm makes desirable investments using NPV rule.
If the manager believes dividend policy is important to their investors and it
positively influences share price valuation, they will adopt managed dividend
policy. Firms generally adopt dividend policies that suit the stage of life cycle
they are in. Dividend policy is one of the most complex aspects in finance.
Three decades ago, Black (1976) in his study on dividend wrote, The harder
we look at the dividend picture the more it seems like a puzzle, with pieces that
just dont fit together. Why shareholders like dividends and why they reward
managers who pay regular increasing dividends is still unanswered. Dividend
policy remains a source of controversy despite years of theoretical and
empirical research, including one aspect of dividend policy: the linkage between
dividend policy and stock price risk (Allen and Michaely, 2003). Paying large
dividends reduces risk, thus influence stock price (Gordon, 1963), and is a
proxy for the future earnings (Baskin, 1989). If dividend policy is stable, high
dividend stocks will have a shorter duration.






WORKING CAPITAL

Net working capital or workingcapital is defined as current assets minus current
liabilities. Therefore, a change in the total amount of current assets without a
change of the same amount in current liabilities will result in a change in the
amount of working capital. Similarly, a change in the total amount of current
liabilities without an identical change in the total amount of current assets will
cause a change in working capital.

For instance, if the owner makes an additional investment of $20,000 in her
company, the company's total current assets will increase by $20,000 but there
is no increase in its current liabilities. As a result, the company's working capital
increases by $20,000. (The other change is an increase in the owner's capital
account.)

If a company borrows $50,000 and agrees to repay the loan in 90 days, the
company's working capital has notincreased. The reason is that the current asset
Cash increased by $50,000 and the current liability Loans Payable also
increased by $50,000.

The use of $30,000 to buy merchandise for inventory will not change the
amount of working capital. The reason is that the total amount of current assets
will not change. The current asset Cash decreases by $30,000 and the current
asset Inventory increases by $30,000.

If a company sells a product for $3,400 which is in its inventory at a cost of
$2,500 the company's working capital will increase by $900. Working capital
increased because 1) the current asset accounts Cash or Accounts Receivable
will increase by $3,400 and Inventory will decrease by $2,500; 2) current
liabilities will not change. Owner's equity will increase by $900.

The use of $100,000 for the construction of a storage building will reduce
working capital because the current asset Cash decreased and a long-
termasset Storage Building has increased.

Where is Working Capital Analysis Most Critical?
On the one hand, working capital is always significant. This is especially true
from the lender's or creditor's perspective, where the main concern is
defensiveness: can the company meet its short-term obligations, such as paying
vendor bills?

But from the perspective of equity valuation and the company's growth
prospects, working capital is more critical to some businesses than to others. At
the risk of oversimplifying, we could say that the models of these businesses are
asset or capital intensive rather than service or people intensive. Examples of
service intensive companies include H&R Block, which provides personal tax
services, and Manpower, which provides employment services. In asset
intensive sectors, firms such as telecom and pharmaceutical companies invest
heavily in fixed assets for the long term, whereas others invest capital primarily
to build and/or buy inventory. It is the latter type of business - the type that is
capital intensive with a focus on inventory rather than fixed assets - that
deserves the greatest attention when it comes to working capital analysis. These
businesses tend to involve retail, consumer goods and technology hardware,
especially if they are low-cost producers or distributors.



Below we have done the analysis of the dividend distribution and the working
capital of the 16 firms








1: ASHOK LEYLAND
Ashok Leyland is an Indian automobile manufacturing company based
in Chennai, India. Founded in 1948, and it is the second largest commercial
vehicle manufacturers of commercial vehicles, such as trucks and buses, as well
as emergency and military vehicles. Operating six plants, Ashok Leyland also
makes spare parts and engines for industrial and marine applications. It sells
about 60,000 vehicles and about 7,000 engines annually. It is the second largest
commercial vehicle company in India in the medium and heavy commercial
vehicle (M&HCV) segment with a market share of 28% (200708). With
passenger transportation options ranging from 19 seaters to 80 seaters, Ashok
Leyland is a market leader in the bus segment.
ashok
lehyland 12 11 10 9 8 7 6 5 4 3
inventories 1,896.02 2,230.63 2,208.90 1,638.24 1,330.01 1,223.91 1,070.32 902.56 568.08 506.94
Sundry
Debtors
1,419.41 1,230.37 1,185.21 1,022.06 957.97 375.84 522.88 424.34 458.77 405.62
Net Sales 12,481.20 13,309.59 11,407.15 7,436.18 6,168.99 7,972.52 7,358.88 5,359.94 4,269.36 3,457.96

deb
payback 41.5092 33.74146 37.92373 50.16714 56.68011 17.20681 25.93482 28.89661 39.22158 42.81464
inventory
period 55.44718 61.17243 70.67922 80.41193 78.69257 56.03337 53.08781 61.46233 48.56681 53.50932
working
capital 4376.8 2814.9 6500.5 6307.3 5784.1 1758.1 4589.2 8677.2 9185 5621.9
dividend
payout
36.8 54.63 48.98 54.92 81.91 49.8 51.31 55.66 50.04 51.98

INVENTORY : For the past 10 years, inventories are showing a growing
pattern, this means increase in production. But the deviation in last year
shows that there is sumptuous sale.

WORKING CAPITAL: For the past 10 years, it shows an irregular
pattern (so many ups & downs), hence it is not consistent. An increase in
WC means an increase in current assets, while decrease means
comparatively less current assets are financed from current liabilities.

DIVIDEND PAYOUT: Again the pattern is irregular, it is near
50%,though it has tremendously increased in 08 & decreased in 12 due
to increase in profits & due to different growth prospects , respectively.

SUNDRY DEBTORS: It shows a growing trend. In 08, it has certainly
increased showing increasing credit granting & less cash recoveryby
customers.



2:Atul Auto Ltd.
The Company was originally incorporated as a Private Limited Company on
18th June, 1986 under the Companies Act, 1956, in the State of Maharashtra.
The Registered Office of the Company was transferred to Jamnagar in the State
of Gujarat on 24-01-92. Subsequently on 20-4-94 the Registered Office was
transferred to Dist.Rajkot, Gujarat. The Name of the Company was changed
from Atul Auto (Jamnagar) Pvt. Ltd. to Atul Auto Pvt. Ltd. on 12-08-94. The
Company was subsequently converted into Public Limited Company and fresh
certificate of incorporation was obtained on 12-08-94 from the Registrar of the
Companies, Gujarat.

atul auto 12 11 10 9 8 7 6 5 4 3
inventories
22.95 29.82 19.17 18.57 17.68 19.36 20.76 10.04 7.23 4.44
Sundry
Debtors
7.15 6.08 5.41 4.52 3.52 3.96 8.17 8.74 6.29 5.1
Net Sales 363.84 298.05 201.80 119.90 117.53 81.25 123.02 130 99.05 67.1


deb
payback 7.172796 7.445731 9.785183 13.7598 10.93168 17.78954 24.24037 24.53923 23.1787 27.74218
inventory
period 23.02317 36.51837 34.67319 56.53086 54.90683 86.97108 61.59486 28.18923 26.6426 24.15201
working
capital 32.7 169.5 95.8 124.1 129.7 169.7 201.3 63.5 92.9 82.5
dividend
payout 29.71 27.26 28.85 30.16 74.46 54.03 19.91 14.53 0 31.46

INVENTORY : A company may elect to increase its inventory levels in
order to improve its order fulfillment rate. This will increase the
inventory investment, and so uses cash. Reducing inventory levels has the
reverse effect

WORKING CAPITAL: An increase in WC means an increase in
current assets, while decrease means comparatively less current assets are
financed from current liabilities.

DIVIDEND PAYOUT: In 04 , company was not able to give dividend,
maybe it was incurring losses. In 08, it gave the highest dividend but
overall pattern is declining in the recent years.

SUNDRY DEBTORS: The overall pattern is satisfactory. In 05-06, it
was highest, due to retaining customers.




3: EICHER MOTORS
Eicher Motors Limited (EML) (BSE: 505200, NSE: EICHERMOT)
incorporated in 1982, is an Indian automaker company based in Gurgaon, India.
Eicher Motors Limited, is the flagship company of the Eicher Group in India
and a leading player of the Indian automobile industry. Its 50-50 joint venture
with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures
and markets commercial vehicles, engineering components and provides
engineering design. Eicher Motors also manufactures and markets the Royal
Enfield motorcycles for the premium motorcycle segment in India
eicher 12 11 10 9 8 7 6 5 4 3
inventories
143.84 75.41 45.27 28.23 22.03 19.37 210.38 168.91 161.23 161.25
Sundry
Debtors
12.13 6.20 4.10 3.64 5.19 5.08 141.32 189.38 117.6 158.08
Net Sales 1,702.47 1,049.26 669.69 441.98 378.5 696.37 2218.83 1968.64 1649.38 1995.77


deb
payback 2.600604 2.156758 2.234616 3.006018 5.004888 2.662665 23.2473 35.11241 26.02432 28.91075
inventory
period 30.83849 26.23244 24.67343 23.31316 21.24425 10.15272 34.60774 31.31713 35.67944 29.4905
working
capital -2031.6 -681.1 -464.9 576.7 4258.3 389 53.5 383.7 -128.9 556.4
dividend
payout 24.09 19.35 16.25 18.28 26.22 26.26 30.02 176.18 6.04 0

INVENTORY : The figures are drastically declining after 06, it shows a
major sale. But in the following years, company is trying to maintain a
reasonable level of inventory to meet the uncertain demands.

WORKING CAPITAL: The figures are very weird. It shows few
negative figures also. Anyhow, it has tremendously increased in 08, that
means receivables are increasing breakthrough over and above the limit
of credit giving.

DIVIDEND PAYOUT: Initially, it was null, but with improvement in
returns, it has increased.

SUNDRY DEBTORS: It shows a steep decline, earlier the company was
in practice of giving more credit but may be it failed to recover cash on
time hence it reformed its credit giving policy. And now it is very less.





4: FORCE MOTORS
Force Motors, formerly Bajaj Tempo, is an Indian manufacturer of three-
wheelers, multi-utility and cross country vehicles, light commercial vehicles,
tractors, buses and now heavy commercial vehicles. It was originally named
Firodia Tempo Ltd. and later after partial acquisition by Bajaj Auto as Bajaj
Tempo Ltd.
orce Motors started production of the Hanseat three-wheeler in collaboration
with German Vidal & Sohn Tempo Werke and went on to establish a presence
in the light commercial vehicles field with the Matador, the proverbial LCV
(light commercial vehicle) in India.

force 12 11 10 9 8 7 6 5 4 3
inventories
362.4 311.31 193.73 196.03 240.67 203.92 213.84 185.06 152.25 148.15
Sundry
Debtors
156.43 161.37 150.23 122.89 125.18 119.90 106.88 76.27 112.58 77.19
Net Sales 2,085.00 1,524.85 988.47 774.49 930.54 981.14 934.05 856.44 944.81 699.94


deb
payback 27.38463 38.62678 55.47356 57.91534 49.10127 44.60475 41.76564 32.50496 43.49202 40.25252
inventory
period 63.44173 74.51759 71.53626 92.3846 94.40169 75.86155 83.56255 78.86939 58.81738 77.25626
working
capital 3082.2 6065.7 958.6 700.7 300.7 344.3 299.1 467.8 722.8 1009.9
dividend
payout
1.85 13.06 7.65 -- -- -- -- -- 23.53 23.09

INVENTORY : it is very satisfactory. there is a general increase /
decrease. It is meeting its demands.

WORKING CAPITAL: initially it was very high. It subsequently
decreased , but it increased in 11, which shows an increase in
receivables.

DIVIDEND PAYOUT: It is not very positive. For about 5 years,
company was not able to give dividend to its shareholders. Hence, it may
harm the companys goodwill.

SUNDRY DEBTORS: Again they show a satisfactory effect. By giving
credit, it can retain its current customers.




5:HERO MOTOCORP
Hero Motocorp Ltd., formerly Hero Honda, is an
Indian motorcycle and scooter manufacturer based in New Delhi, India. The
company is the largest two wheeler manufacturer in the world.[2] In India, it
has a market share of about 46% share in 2-wheeler category.[2][4] The 2006
Forbes 200 Most Respected companies list has Hero Honda Motors ranked at
#108.[5] On 31 March 2013, the market capitalisation of the company was INR
308 billion (USD 5.66 billion).[6]
Hero Honda started in 1984 as a joint venture between Hero Cycles of India
and Honda of Japan.[7] In 2010, when Honda decided to move out of the joint
venture, Hero Group bought the shares held by Honda.[8][9] Subsequently, in
August 2011 the company was renamed Hero MotoCorp with a new corporate
identity.[10]
In June 2012, Hero Motocorp approved a proposal to merge the investment arm
of its parent Hero Investment Pvt. Ltd. into the automaker. The decision comes
after 18 months of its split from Honda Motors
hero
motocorp 12 11 10 9 8 7 6 5 4 3
inventories
636.76 675.57 524.93 436.4 326.83 317.1 275.58 226.55 204.26 188.2
Sundry
Debtors
665.00 272.31 130.59 108.39 149.94 297.44 335.25 158.66 89.55 43.8
Net Sales 23,768.11 23,586.80 19,366.97 15,839.58 12325.38 10345.01 9905.95 8719.21 7428.4 5838.14


deb
payback 10.21221 4.213931 2.461167 2.497689 4.440277 10.49449 12.3528 6.64176 4.400106 2.738372
inventory
period 9.778539 10.45428 9.893104 10.0562 9.678643 11.18815 10.15417 9.483743 10.03647 11.76625
working
capital -5587.2 -14696 -21035.2 3520.1 -7558.5 -5191.9 -3458.2 -5233.5 -6996.4 -7300.4
dividend
payout
66.17 43.91 126.39 115.04 36.45 45.86 46.29 46.88 56.25 61.86

INVENTORY : It shows a consistent rising pattern. With every year,
growth in production is seen.

WORKING CAPITAL: The graph is stable. There is no such
extraordinary increase or decrease in the working capital.

DIVIDEND PAYOUT: initially it was on declining phase, but after 08,
it got a great hike. It was a good period for both company and the
investors.

SUNDRY DEBTORS: It is allowing credit as per the capacity of the
firm.


6:HINDUSTAN MOTORS
Hindustan Motors is an Indian automotive manufacturer based in Kolkata, West
Bengal, India. It is part of the Birla Technical Services industrial group. The
company was the largest car manufacturer in India before the rise of Maruti
Udyog.
It is the producer of the Ambassador car, widely used as a taxicab and as a
government limousine. This car is based on the Morris Oxford, a British car that
dates back to 1954.
hindustan
motors 12 11 10 9 8 7 6 5 4 3
inventories
81.33 61.85 95.74 71.96 74.93 82.05 102.76 85.87 79.52 158.34
Sundry
Debtors
20.68 19.67 21.65 12.94 16.04 45.62 38.66 51.33 42.6 97.84
Net Sales 722.89 495.48 702.44 613.77 626.65 704.66 666.51 456.02 1114.83 733.71


deb
payback 10.4417 14.49009 11.24972 7.695228 9.342695 23.63026 21.17133 41.08471 13.94742 48.67264
inventory
period 41.06496 45.56238 49.74816 42.79355 43.6439 42.50028 56.27432 68.73065 26.03518 78.76968
working
capital -607.1 -396.2 -566.7 -580.9 -379.6 -66.6 319.7 -303.7 147.8 632.1
dividend
payout 0 0 0 0 0 0 0 0 0 0

INVENTORY : it is changing as per the sale & production of the
company.

WORKING CAPITAL: There are so many negative figures. current
liabilities are exceeding to current assets.

DIVIDEND PAYOUT: no data available.

SUNDRY DEBTORS: they provided immense credit to customers
initially. The later data depicts that receivables are met smoothely.






6: BAJAJ AUTO
Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing
company Bajaj Auto manufactures and sells motorcycles, scooters andauto
rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal
Bajaj in Rajasthan in the 1930s. It is based in Pune, Mumbai, with plants
in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The
oldest plant at Akurdi (Pune) now houses the R&D centre 'Ahead'.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and the
second-largest in India.[4] It is worlds largest three-wheeler manufacturer.
On 31 March 2013, its market capitalisation was INR 520 billion (US$9.57
billion), making it India's 23rd largest publicly traded company by market
value.[5] The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at
1,416
bajaj
auto 12 11 10 9 8 7 6 5 4 3
inventories
636.28 678.53 547.28 446.21 338.84 349.61 309.7 272.93
Sundry
Debtors
0.00 423.20 362.76 272.84 358.65 275.31 529.83 301.55
Net Sales 19,997.25 19,516.65 16,451.80 11,813.25 8700.17 8827.15 9420.24 7572.13


deb
payback 0 7.914678 8.048201 8.430076 15.04652 11.38399 20.52898 14.53564
inventory
period 11.61371 12.68985 12.14197 13.78678 14.21542 14.45627 11.99975 13.15607
working
capital 7592 12940.8 2714.1 9449.8 1358.3 -1042 0 0
dividend
payout 48.63 49.69 38.93 42.32 69.5 45.16 37.9 41.77

INVENTORY : it changes as per the sale & production of the company.

WORKING CAPITAL: It depicts whether current liabilities are
exceeding enough to finance current assets.

DIVIDEND PAYOUT: They are providing a stable dividend to
investors. They provided their highest dividend in 08. May be they
earned good returns on their previous investments.

SUNDRY DEBTORS: It is a very uneven graph. Frequent ups & downs.
A severe deviation could be seen in last two years.



7:ESCORTS AUTO PRODUCTS
Escorts Auto Products (EAP)[5] manufactures auto suspension products such
as shock absorbers, struts and telescopic front forks for the automotive industry.
The company pioneered automotive shock absorber manufacturing in India in
1966 in technical collaboration with Fichtel & Sachs, Germany. The EAP
manufacturing unit is spread across an area of 12,500 sq. ft. in Faridabad.
escorts
auto 12 11 10 9 8 7 6 5 4 3
inventories
496.61 327.36 295.5 199.49 201.96 158.49 172.49 125.94 120.04 119.4
Sundry
Debtors
445.44 340.53 332.62 329.15 518.22 379.74 292.75 176.84 253.92 256.76
Net Sales 3,893.88 3,242.72 2,763.22 2,178.61 2012 2092.04 1772.6 1298.52 1117.09 790.91


deb
payback 41.75414 38.33 43.93653 55.14514 94.01108 66.25356 60.2808 49.70782 82.96628 118.4931
inventory
period 46.55065 36.84758 39.03327 33.42216 36.63787 27.65189 35.5178 35.40038 39.22209 55.10235
working
capital 1894.5 1894.5 1837.1 2208.3 1234.4 2119.8 2009.7 1491.6 1737.6 796.6
dividend
payout 23.16 14.56 14.31 40.18 0 0 0 0 0 0

INVENTORY : It is somehow an increasing graph. The company
increases its inventory to meet the uncertain demands, may be due its
growing credit worthiness.

WORKING CAPITAL: It is also an increasing graph. It changes as per
the changes in various heads of both current assets and current liabilities.

DIVIDEND PAYOUT: For the past 4 years ,it is declining
May be they heading to some future growth prospects.

SUNDRY DEBTORS: they also increase or decrease as per the credit
giving policy of the company and also on the credibility of the customers.




8:H M T LIMITED
HMT Limited, formerly Hindustan Machine Tools Limited, is a state-owned
manufacturing company under the Ministry of Heavy Industries and Public
Enterprises inIndia.[1] The company manufactures tractors, watches under its
watch division and industrial machines and tools mainly under its Praga
division

hmt 12 11 10 9 8 7 6 5 4 3
inventories
56.14 28.36 29 40.38 52.4 32.87 48.06 41.33 42.41
Sundry
Debtors
64.54 72.49 68.64 74.44 104.02 134.48 127.56 99.81 107.06
Net Sales 159.57 200.94 193.46 162.52 171.19 230.35 252.48 204.52 139.89


deb
payback 147.6286 131.6754 129.5027 167.1831 221.7846 213.0896 184.4083 178.1276 279.3402
inventory
period 128.4145 51.51488 54.71415 90.68853 111.7238 52.084 69.47837 73.76027 110.6559
working
capital -735 -64.7 -197.3 516.2 899.4 1109.8 5170.4 1437 976.1 358.5
dividend
payout 0 0 0 0 0 0 0 0

INVENTORY : it is maintained as per the market requirements of the
industry.

WORKING CAPITAL: Generally, a growing working capital is better
than the declining one. For the past 3 years, working capital is negative,
hence

DIVIDEND PAYOUT: no data available

SUNDRY DEBTORS: Again its an uneven pattern. It changes as per the
credit giving policy of company and the cash payback by the customers.






9:L M L LIMITED
Incorporated as Lohia Machines Private Limited in 1978, the company was
engaged in manufacture of synthetic yarn manufacturing machines in technical
collaboration with ARCT,[clarification needed] France. In 1978, it became
a public limited company and diversified into processing synthetic yarn.
The LML Select was launched in 1993, with new age technology and aesthetics,
and became an instant success. LML's joint venture with Piaggio ended in 1999.
LML continued to manufacture the Star, a classically styled steel-bodied scooter
with twist-shift 4-speed manual transmission and a 150cc two-stroke engine.

lml 12 11 10 9 8 7 6 5 4 3
inventories
98.81 107.79 99.24 92.7 98.09 102.48 102.57 120.19 160.95 130.98
Sundry
Debtors
1.23 0.79 2.60 5.42 6.35 6.98 4.78 14.06 20.74 39.49
Net Sales 245.38 308.92 361.90 163.78 111.64 62.84 326.16 603.86 951.08 470.42


deb
payback 1.829611 0.933413 2.622271 12.07901 20.76093 40.54265 5.349215 8.498493 7.959478 30.64039
inventory
period 146.9788 127.3577 100.0901 206.5912 320.6991 595.2451 114.7843 72.64821 61.76846 101.6277
working
capital -2735.6 -2439.2 -2292 -2292 -2012.5 -1842.5 -1509.6 -1366.8 -764.9 -764.9
dividend
payout 0 0 0 0 0 0 0 0 0 0

INVENTORY : It is as per the sale & production of the company.

WORKING CAPITAL: It is negative throughout. Hence, not
favourable.

DIVIDEND PAYOUT: no data available.

SUNDRY DEBTORS: A steep decline can be seen. Either there are
negligible defaults or the company is not able to give on credit.




11: MARUTI SUZUKI
Maruti Suuki India imited (maruti suzuki/), commonly referred to
as Maruti and formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India.[8] It is a subsidiary of Japanese automobile and
motorcycle manufacturer Suzuki.[7] As of November 2012, it had a market
share of 37% of the Indian passenger car market.[9] Maruti Suzuki
manufactures and sells a complete range of cars from the entry level Alto, to the
hatchback Ritz, A-Star, Swift, Wagon R, Zen and
sedans DZire,Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose
vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitar
maruti
suzuki 12 11 10 9 8 7 6 5 4 3
inventories
1840.7 1796.5 1415 1208.8 902.3 1038 713.2 881.2 666.6 439.8
Sundry
Debtors
1,423.70 937.60 824.50 809.90 918.90 655.50 747.40 654.8 599.5 689.4
Net Sales 43,587.90 35,587.10 36,618.40 29,317.70 20729.4 18066.8 14806.4 12197.9 11046.3 9449.5


deb
payback 11.9219 9.616518 8.218341 10.08311 16.17985 13.24294 18.42453 19.5937 19.80912 26.62903
inventory
period 15.41381 18.42585 14.10425 15.04934 15.88756 20.97051 17.58145 26.36831 22.02629 16.98788
working
capital 1001 8359 15702 -6407 9229 -135 9263 15908 12621 3672
dividend
payout 11.45 14.97 10.56 7.69 9.63 7.16 8.15 7.64 4.85 4.32

INVENTORY : It is as per the sale & production of the company.

WORKING CAPITAL: It is as per the changes in current assets and
current liabilities.

DIVIDEND PAYOUT: it has increased in the recent years, may be due
to the increasing returns from the past projects.

SUNDRY DEBTORS: it has increased as per the recent years. The
growing trend of the company justifies giving more credit to customers.




12: TATA MOTORS
Tata Motors Limited (formerly TELCO, short for Tata Engineering and
Locomotive Company) is an Indian multinational automotive manufacturing
company headquartered in Mumbai, Maharashtra, India and a subsidiary of
the Tata Group. Its products include passenger cars, trucks, vans, coaches,
buses, construction equipment and military vehicles. It is the world's
seventeenth-largest motor vehicle manufacturing company, fourth-largest truck
manufacturer and second-largest bus manufacturer by volume
tata
motors 12 11 10 9 8 7 6 5 4 3
inventories
4455.03 4588.23 3891.39 2935.59 2229.81 2421.83 2500.95 2012.24 1601.36 1147.44
Sundry
Debtors
1,818.04 2,708.32 2,602.88 2,391.92 1,555.20 1,130.73 782.18 715.78 811.32 614.99
Net Sales 44,765.72 54,306.56 47,088.44 35,373.29 25660.67 28767.91 26664.25 20088.63 17199.17 13028.17


deb
payback 14.41738 17.70419 19.62313 24.00488 21.51526 13.95337 10.41371 12.64904 16.74608 16.75765
inventory
period 36.32436 30.83797 30.16361 30.29094 31.71705 30.72757 34.23486 36.56136 33.98399 32.14692
working
capital -28529.6 -16535.3 -20709.3 -72720.3 -34170 -25944 -22160.5 -18381 -9514.1 -15883
dividend
payout 7.64 11.01 15.97 38.96 0 31.21 31.71 33.81 37.78 35.06

INVENTORY : It has increased in the recent years. It is also influenced
by the market requirements.

WORKING CAPITAL: It changes as per the changes in current assets
and current liabilities.

DIVIDEND PAYOUT: it has increased in 09, due to growing trends.

SUNDRY DEBTORS: It also shows an increasing trend.





13: KINETIC ENGINEERING LIMITED
Kinetic Engineering Limited is an automotive component manufacturer in India
which formerly sold two-wheelers under the brand names Kinetic Honda and
later Kinetic. It introduced Kinetic Luna moped which sold well domestically
and was exported extensively to Argentina, Brazil, the US, and Sri Lanka.
Later Kinetic Engineering formed a joint venture with Honda Motor Company
to introduce Kinetic Honda scooters, which had electric start and gearless
transmissions. Kinetic and Honda parted ways in 1998 with the Firodias bought
out the majority stake of the MNC[clarification needed] joint venture partner. In
2008, Kinetic entered into a joint venture with Mahindra Automobiles, where
Mahindra held an 80% stake.[1] By this joint venture, Mahindra acquired the
two-wheeler manufacturing facilities as well as the then selling brands of
Kinetic
kinetic
engg 12 11 10 9 8 7 6 5 4 3
inventories
17.47 19.79 18.17 14.82 14.16 18.14 27.63 46.98 68.19 69.11
Sundry
Debtors
29.48 30.43 28.75 22.67 23.71 61.11 60.30 58.16 85.93 108.03
Net Sales 80.22 83.07 90.69 48.98 64.32 82.61 148.61 201.28 203.93 258.16


deb
payback 134.1336 133.7059 115.7101 168.9373 134.5484 270.0054 148.1024 105.467 153.8001 152.7384
inventory 79.48828 86.95498 73.12879 110.439 80.35448 80.14889 67.86185 85.19326 122.0485 97.7113
period
working
capital 22.3 144.5 92.2 122.6 195.4 901.7 380.6 380.6 266.6 856.9
dividend
payout 0 0 0 0 0 0 0 0 0 0

INVENTORY : It changes as per the market requirements.

WORKING CAPITAL: It is as per the changes incurrent assets and
current liabilities.

DIVIDEND PAYOUT: no data available

SUNDRY DEBTORS: It has decreased in recent years.



14: MAJESTIC AUTO
majestic
auto 12 11 10 9 8 7 6 5 4 3
inventories
14.14 10.66 11.03 8.54 8.81 10.19 12.37 18.5 21.35 10.77
Sundry
Debtors
13.59 18.46 23.72 10.58 9.71 11.50 16.40 34.05 25.34 20.85
Net Sales 153.43 164.67 152.27 130.98 118.44 114.29 121.54 131.33 59.2 148.07


deb
payback 32.32973 40.91759 56.85821 29.48313 29.92359 36.72675 49.25128 94.63375 156.2348 51.3963
inventory
period 33.63814 23.62847 26.43955 23.79829 27.15003 32.54309 37.14868 51.41628 131.6343 26.54859
working
capital 73 139.6 196.2 65.7 95.1 54.3 92.9 173.3 188.9 89.5
dividend
payout 0 0 0 0 0 0 0 0 0 0

INVENTORY: It depends on the sale, production & demand.

WORKING CAPITAL: It depends on the current assets and current
liabilities.


DIVIDEND PAYOUT: no data available

SUNDRY DEBTORS: they are showing a decreasing pattern






15: S M L ISUZU LIMITED
SML Isuzu Limited was formed in 2010 from the Swaraj
Mazda company. Mazda had pulled out of the venture, and the Swaraj name had
been sold to Mahindra when the tractor division, (Punjab Tractors), was sold
off. The Sumitomo Corporation and Isuzu are now partners in this company and
produced several licensed-Isuzu products.

INVENTORY: It depends on the sale, production & demand.

WORKING CAPITAL: It depends on the current assets and current
liabilities.

s m l
isuzu 12 11 10 9 8 7 6 5 4 3
inventories
230.65 226.39 210.16 160 149.29 123.5 87.33 91.14 88.56 60.35
Sundry
Debtors
150.73 121.02 116.51 136.56 146.33 185.60 191.55 253.42 164.11 104.13
Net Sales 1,002.10 1,029.75 890.31 720.46 544.71 669.57 601.34 611.82 589.62 478.02


deb
payback 54.90116 42.89614 47.76555 69.18413 98.053 101.1754 116.2666 151.1855 101.5911 79.51017
inventory
period 84.01083 80.24506 86.1592 81.05932 100.0364 67.32306 53.00737 54.37236 54.82243 46.08123
working
capital 3346.7 2529.7 2093.2 1520 1771.9 1351.7 1326.4 1474.4 626.8 327.6
dividend
payout 15 55 55 55 75 70 45 20 0 0


DIVIDEND PAYOUT: no data available

SUNDRY DEBTORS: they are showing a decreasing pattern




16: TVS MOTOR
TVS Motor Company Limited, which is part of TVS Group, manufactures
motorcycles, scooters, mopeds and auto rickshaws in IndiaTVS was established
by Thirukkurungudi Vengaram Sundaram Iyengar. He began
with Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar and
Sons Limited, a company that consolidated its presence in the transportation
business with a large fleet of trucks and buses under the name of Southern
Roadways Limited
T V S 12 11 10 9 8 7 6 5 4 3
inventories
22.95 29.82 19.17 18.57 17.68 19.36 20.76 10.04 7.23 4.44
Sundry
Debtors
7.15 6.08 5.41 4.52 3.52 3.96 8.17 8.74 6.29 5.1
Net Sales 363.84 298.05 201.80 119.90 117.53 81.25 123.02 130 99.05 67.1


deb
payback 7.172796 7.445731 9.785183 13.7598 10.93168 17.78954 24.24037 24.53923 23.1787 27.74218
inventory
period 23.02317 36.51837 34.67319 56.53086 54.90683 86.97108 61.59486 28.18923 26.6426 24.15201
working
capital 32.7 169.5 95.8 124.1 129.7 169.7 201.3 63.5 92.9 82.5
dividend
payout 0 0 0 0 0 52.67 10.02 8.79 0 0

INVENTORY: It depends on the sale, production & demand.

WORKING CAPITAL: It depends on the current assets and current
liabilities.


DIVIDEND PAYOUT: no data available

SUNDRY DEBTORS: they are showing a decreasing pattern