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BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS

GROUP VI -Section C
Presented by Deepak Nesarikar(12135) Dhrubajyoti Sahu(12136) Dinesh Chand(12137) Varun Kumar (12175) Shreetha T.S.(12176)

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


Q1.Who are the auditors of the company? What is their role? Auditors-Messers Dalal and Shah, CA. A P Raman is the cost auditor. To examine the compliance of conditions of Corporate Governance by Bajaj Auto limited for the year ended 31st Mar2012,as stipulated in clause 49 of the listing agreements of the said company with stock exchanges in India.

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


Q2. What is the performance of Commercial vehicles segment of the company compared to the industry? What inference may be drawn from same? Domestic sales for 3 wheelers across the industry declined by 2.4% in 12. Bajaj Auto saw a marginal fall in sales by 1.3%. Despite this companys market share has increased from 39.1% in 11 to 39.5% in 12.

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


Q3. Referring to the standalone financial statements, what is the difference between Basic and diluted EPS? How does it compare over FY 11-12? Basic EPS is reported only for equity share capital. Computation depends on company's simple capital structure with no convertible debentures and convertible preference share capital and stock options instruments that can increase the number of equity shares. Diluted EPS (complex capital structure)is reported for securities that may be converted into equity share capital. The conversion has the potential of reducing or diluting the EPS by increasing the number of equity shares.

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


It represents the increase in loss per share resulting from assumption that all potentially dilutive securities would be converted into equity shares. Less in'12(3004 Cr) as compared to '11(3339 Cr) due to reduction in PAT and not because of dilution. .

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


Q4.Referring to the Standalone financial statement, identify the different sources of Current liability? A)Short term borrowing(Secure loans payable on demand, Other Unsecured loans) B)trade payables(due to micro and small industries/other than these) C)other current liabilities(current maturity of long term borrowings, Annuity payable to VRS optees, Advance against orders, unclaimed maturity deposits and interests accrued thereon, security deposits, Unclaimed dividend, book overdraft, other payables)

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


D)short term provisions Provision for employee benefits(gratuity, compensated absences, welfare scheme) Other provisions(warranties, tax, dividend, proposed dividend, valuation losses on derivative hedging instruments)

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS

Q5.Referring to the Consolidated financial statements, what is the movement reflected under Provisions over the year FY 11-12? What is the implication of the same on the consolidated

BAJAJ AUTO- 5th ANNUAL REPORT ANALYSIS


Long term provisions(113.16 Cr in 12 as compared to 125.54Cr in 11) have decreased while short term provisions have increased(2063 Cr in12 as compared to 1431Cr in 11). These liabilities have implications to turn into bad debt expense in future and ultimately bring down the retained earnings .

THANK YOU

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