Accountancy

Project
ON
(RATIO + CASH
FLOW STATEMENT)
 I would like to express my special thanks of
gratitude to my teacher.
Who gave me the golden opportunity to do
this wonderful project, which also helped me
in doing a lot of research and, I came to know
about so many new things. I am really
thankful to them.
Secondly, I would also like to thank my
parents and friends who helped me a lot in
finalizing this project within the limited
timeframe.
 This is to certify that
a student of class - Xll has successfully
completed the research on this project
under my supervision.
He has taken proper care and shown
utmost sincerity in the completion of
this project. I certify that this project is
upto my expectations and as per the
guidelines issued by CBSE.
S.NO. TOPIC PAGE NO.

1 Introduction

2 History

3 Company’s Profile

4 Board Of Directors

5 Balance Sheet

7 Statement Of Profit & Loss

8 Accounting Ratio

a) Liquidity Ratio

b) Solvency Ratio

c) Activity Ratio

d) Profitability Ratio

9 Meaning Of Cash Flow Statement

10 Cash Flow Statement

11 Conclusion

12 Bibliography
 Introduction
Maruti Suzuki
Maruti Suzuki India Limited, a subsidiary of the
Japanese automobile giant Suzuki Motor
Corporation, is India's largest car manufacturer.
Established in 1981, the company has
revolutionized India's automotive industry,
bringing affordability and quality to the
forefront of car ownership. Known for its fuel-
efficient and budget-friendly vehicles, Maruti
Suzuki holds a prominent market share in India.

With a vast portfolio of cars from entry-level

hatchbacks to premium sedans and SUVs,
Maruti Suzuki caters to diverse customer needs.
The company's strong dealership network and
focus on innovation and quality have cemented
its position as a market leader in the Indian
automotive sector.
 History
Maruti Suzuki was initially established as a
government-owned entity called Maruti Udyog
Limited in 1981, aiming to provide affordable
transportation for Indian consumers. The
company launched its first vehicle, the Maruti
800, in 1983, which became iconic for
transforming mobility in India. In 1982, Suzuki
Motor Corporation partnered with Maruti,
acquiring a 26% stake.

By the early 2000s, Maruti Suzuki had

become a household name in India, with a wide
range of models catering to various market
segments. In 2003, the Indian government
divested its shares, making Suzuki the majority
stakeholder. Maruti Suzuki has since continued
to innovate, adapting to changing trends and
evolving consumer demands.
 Company Profile:-
Type Public

Founder Government of India

Founded 1981

Hisashi Takeuchi
Key People
(Managing Director & CEO)

Headquarters New Delhi, India

Area Served Primarily India

No. Of Employees Approximately 34,000

Board Of Directors
Chairman Emeritus & Board Of Directors :-
Name Designations

R.C. Bhargava Chairman Emeritus

Kenichi Ayukawa Executive Vice Chairman

Hisashi Takeuchi Managing Director & CEO

R.C. Bhargava Non-Executive Chairman

Keniichi Ayukawa Executive Vice-Chairman

Rajesh Uppal Senior Executive Director

Standalone Balance Sheet
As at March 31, 2024
(All amounts in I million, unless otherwise stated)

Notes As at As at
Particulars Page No.
No. 31.03.2024 31.03.2023
ASSETS
Non-current assets
4 318-322 174,314 166,666
Property, plant and equipment
35 359-360 6,129 5,904
Right-of-use assets
4.2 321-322 63,034 28,081
Capital work-in-progress
5 322-323 4,510 5,479
Intangible assets
5.1 323 2,305 889
Intangible assets under development
6 323-326 646,015 477,564
Financial assets
Investments 7 327 1 2
Loans 9 328 822 580
Other financial assets 21 337 5,439 5,729
Non-current tax assets (Net) 18 334-335 1,124 3,411
Deferred tax assets (Net) 12 329 21,531 21,483
Other non-current assets
Total non-current assets 925,224 715,788
Current assets 41,196 42,838
Inventories 10 328 39,122 -
Financial assets 6 323-326 46,013 32,958
Investments 8 327 4,557 334
Trade receivables 11.1 329 43 43
Cash and cash equivalents 11.2 329 327 297
Other bank balances 7 327 19,801 21,859
Loans 9 328 26,565 17,670
Other financial assets 12 329 177,624 115,999
Other current assets 1,102,848 831,787
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Equity share capital 1 330 1,572 1,510
Other equity 3 331-332 838,248 602,310
Total equity 1 839,820 603,820
Liabilities 4
Non-current liabilities
Financial liabilities
Lease liabilities 3 359-360 677 249
Provisions 5 333-334 1,448 876
Other non-current liabilities 1 336 31,616 25,849
Total non-current liabilities 7 33,741 26,974
Current liabilities Financial 1
liabilities 9
Borrowings 1 333 331 12,158
Lease liabilities 5 359-360 178 66
Trade payables 3 336-337 1,592 1,761
Total outstanding dues of micro and small enterprises 5 336-337 144,232 116,043
Total outstanding dues of creditors other than micro and small enterprises 2 333 19,426 18,123
Other financial liabilities 0 336 39,432 31,238
Other current liabilities 2 333-334 12,066 10,038
Provisions Current tax 0 337 12,030 11,566
liabilities (Net) 1
Total current liabilities 6 229,287 200,99
Total liabilities 1 263,028 3
Total equity and liabilities 9 1,102,848 227,96
1 7
7 831,78
2 7
The accompanying notes are forming part of these standalone financial statements. 1
For and on behalf of the Board of Directors

In terms of our report attached

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)

ALKA CHADHA HISASHI TAKEUCHI KENICHIRO TOYOFUKU

Partner Managing Director and CEO Director (Corporate Planning)
(Membership Number 93474) DIN: 07806180 DIN: 08619076
ARNAB ROY SANJEEV GROVER
Chief Financial Officer Executive Officer and Company Secretary
Place: New Delhi ICSI Membership No: F3788
Date: April 26, 2024
Place: New Delhi
Date: April 26, 2024

Maruti Suzuki India Limited | Annual Integrated Report 2023-24

Standalone Statement of Profit and Loss
for the year ended March 31, 2024
I
(All amounts in million, unless otherwise stated)

Notes Year ended Year ended

Particulars Page No.
No. 31.03.2024 31.03.2023
22 337-338 1,409,326 1,175,229
I Revenue from operations
23 338 38,548 21,613
II Other income
II Total Income (I+II) 1,447,874 1,196,842
I Expenses
I Cost of materials consumed 24.1 338 459,397 466,70
V Purchases of stock-in-trade 551,099 0
Changes in inventories of finished goods, work-in-progress and (4,429) 399,77
(4,037)
24.2 339
stock-in-trade 2
Employee benefits expense 25 339 54,784 46,051
Finance costs 26 339 1,932 1,866
Depreciation and amortisation expenses 27 340 30,223 28,233
Other expenses 28 340-341 186,352 158,039
Vehicles/dies for own use (1,888) (1,373)
Total expenses (IV) 1,277,470 1,095,251
V Profit before tax (III - IV) 170,404 101,591
VI Tax expense
Current tax 2 341- 36,311 22,475
Deferred tax 9 342 1,999 (1,376)
2 341- 38,310 21,09
VII Profit for the year (V - VI) 9 342 132,094 9
VIII Other Comprehensive Income 80,49
(i) Items that will not be reclassified to profit or loss 2
(a) Re-measurements of the defined benefit plans 14. 33 (453) (344)
(b) Fair value changes on Equity Instruments through other 3,429 929
4 2
comprehensive income
14. 33 2,976 585
(ii) Income tax relating to items that will not be reclassified to (288) 8
529 2
341-342
profit or loss
Total Other Comprehensive Income for the year (i+ii) 2,688 593
IX Total Comprehensive Income for the year (VII + VIII) 134,782 81,085
I)
Earnings per equity share ( 31 342
Basic 431.0 266.4
Diluted 8 6
431.0 266.4
The accompanying notes are forming part of these standalone financial statements. 8 6
For and on behalf of the Board of Directors

In terms of our report attached

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)

ALKA CHADHA HISASHI TAKEUCHI KENICHIRO TOYOFUKU

Partner Managing Director and CEO Director (Corporate Planning)
(Membership Number 93474) DIN: 07806180 DIN: 08619076

ARNAB ROY SANJEEV GROVER

Chief Financial OfficerExecutive Officer and Company Secretary
ICSI Membership No: F3788
Place: New Delhi Place: New Delhi
Date: April 26, 2024 Date: April 26, 2024

Maruti Suzuki India Limited | Annual Integrated Report 2023-24

 Subject Matter Of
Project...
The project is to analyze the financial data of the
company Infosys and give assessment on the
profitability and liquidity of the company, for the
last two years on the basis of tools of analysis to
asses whether the company will be able to meet
its short - term financial obligations.

Objectives
To study whether the company has performed
better than before and to assess whether the
company’s business is on the right path or not.
Accounting Ratios...
Ratio Analysis is technique of financial statements
Analysis. It is more widely used tool to interpret
quantitative relationships between two variable of
the financial statements.

The term accounting ratio is used to describe

significant relationship which exists between
figures shown in a balance sheet, in a statements
of project and loss, in a budgetary control system
or in any part of the accounting organization.

A financial ratio matches two or more pieces of

monetary data and presents them in the form of
a percentage, proportion, or in relation to a period
of time.
 1.Liquidity Ratio
Liquidity Ratio are those ratios which are
computed to evaluate the capacity of the entity
to meet its short term liability.
Current Ratio
Quick Ratio or Liquid Ratio.

Current Ratio :-
It refers to a company’s ability to generate
enough cash to pay off its debts once they
become due. Its used globally as a way to measure
the overall financial health of a company.

Current Ratio = Current Asset

Current Liabilities
For year 2024 = 177,624 = 0.77 %
229,287

For year 2023 = 115,999 = 0.58 %

200,993
Comment - Improved liquidity suggests a slightly
better capacity to cover short-term obligations,
though still below 1. Continued monitoring is
advised for adequate short-term asset
management.
 Quick Ratio :-
The quick ratio is an indication of a company short
term liquidity position and measure of a company’s
ability to meet its short term obligations with its
most liquid assets.

Quick Ratio = Current Assets - Inventory

Current Liabilities

For year 2024 = 177,624 - 41,196 = 0.60 %

229,287

For year 2023 = 115,999 - 42,838 = 0.36 %

200,993

As there are no inventories and no prepaid expenses,

current Assets and liquid assets are equal.
Interpretation - The increase indicates
stronger liquidity without reliance on inventory,
suggesting better handling of immediate
liabilities in 2024.
 2.Solvency Ratio
“Solvency Ratio” are those ratio which shows
whether the enterprise will be able to meet its
long term financial obligations, i.e long - term
liabilities.

Important Solvency Ratio are -

Debt to equity ratio.
Proprietary ratio.
Total assets to debt ratio.
Interest coverage ratio.
 Debt to Equity Ratio :-
The debt to equity ratio is used to evaluate a
company financial leverage and is calculated by
dividing a company’s total liabilities by its shareholders
equity.

Debt to Equity Ratio = Debt

Equity

For year 2024 = 263,028 = 0.31 %

839,820

For year 2023 = 227,967 = 0.38 %

603,820

Interpretation - Decreased leverage in 2024 reflects

a lower dependency on debt. This trend shows a more
conservative financial structure, reducing financial
risk.
 Proprietary Ratio :-
The proprietary ratio is the proportion of shareholders
equity to total assets and as such provides a rough
estimate of the amount of capitalization currently used
to support a business.

Proprietary Ratio = Equity

Total Assets

For year 2024 = 839,820 = 0.76 %

1,102,848

For year 2023 = 603,820 = 0.73 %

831,787

Interpretation - A slight increase in equity proportion

indicates a more stable financial position, as assets are
primarily financed by shareholders, reducing reliance on
external debt.
 Total Asset to Debt Ratio :-
Total asset to debt ratio is a leverage ratio that
defines the total amount of debt relative to assets
owned by a company. It measure the safety margin
available to lender at long - term debts.

Total Assets to Debt Ratio = Total Assets

Debt

For year 2024 = 1,102,848 = 4.19 %

263,028

For year 2023 = 831,787 = 3.65 %

227,967

Interpretation - Improved coverage of liabilities by

assets suggests a healthier financial position, as
assets cover debts more comfortably in 2024,
enhancing security for creditors.
 Interest Coverage Ratio :-
Interest coverage ratio is used to measure how well a
firm can pay the interest due on outstanding debt. The
interest coverage ratio is calculated by dividing
company’s earning before interest and taxes (EBIT) by
interest expense during a give period.

Interest Coverage Ratio = Profit before int. & Tax

Int. on long term debt

For year 2024 = 170,404 + 1932 = 89.20 %

1,932

For year 2023 = 101,591 + 1,866 = 55.43 %

1,866

Interpretation - Increased capacity to cover interest

expenses shows a strong improvement in financial
stability, with greater protection against interest rate
risks in 2024.
 3.Activity Ratio
An activity ratio is type of financial metric
that indicates how efficiency a company is
leveraging the assets on its balance sheet, to
generate revenue and cash.

Important Activity Ratio are -

Inventory turnover ratio
Trade Receivables Ratio
Trade Payable turnover Ratio
Working capital turnover Ratio
 Inventory Turnover Ratio :-
Inventory turnover ratio is a financial ratio showing
how many times a company has sold and replaced
inventory during a given period.

Inventory Turnover Ratio = Net Sales

Avg. Inventory

For year 2024 = 459,397 = 10.93 times.

42,017
For year 2023 = 466,700 = 11.11 times.
42,017

Interpretation - Higher inventory turnover in 2024

points to efficient inventory management, with
inventory moving quickly. This enhances working
capital efficiency and reduces holding costs.
 Inventory Receivables Ratio :-
The effectiveness of a company’s credit and collection
practices is calculated by the trade Receivables turnover
ratio. It is financial up by dividing net credit sales by the
average accounts receivables during a given time frame.

Inventory Receivables Ratio = Net Credit RFO or Sales

Avg. trade Receivables

For year 2024 = 1,409,326 = 35.69 times

39,485.5
For year 2023 = 1,175,229 = 29.76 times
39,485.5

Interpretation - High and consistent receivables turnover

demonstrates efficient collection practices. It reflects well
on cash flow management and customer payment
reliability.
Trade Payable Turnover Ratio :-
Trade Payable Turnover Ratio is also known as
Accounts payable turnover ratio or the creditors
turnover ratio. This ratio is used to measure the
number of times the business is paying off its
creditors or suppliers in an accounting period.
Trade Payable = Net Credit Purchases
turnover ratio Avg. trade Payables

For year 2024 = 551,099 = 4.23 times

130,137.5
For year 2023 = 399,772 = 3.07 times
130,137.5

Interpretation - A high ratio would indicate quick

supplier payments; stable or improving values suggest
effective creditor relationships and prompt payments.
Working Capital Turnover Ratio :-
Working Capital turnover ratio is the ratio between the
net revenue and the working capital of a business. It
indicate how effectively a company use the available funds
for production.

Working Capital = Revenue from operation

turnover ratio Working Capital

For year 2024 = 1,409,326 = 27.28 times

-51,663
For year 2023 = 1,175,229 = 13.82 times
-84,994

Interpretation - Negative working capital turnover in both

years (due to a negative working capital) indicates high
operational efficiency with minimized excess inventory and
receivables.
 4.Profitability Ratio
Profitability Ratio are a class of financial metrics
that are used to assess a business ability to
generate earnings relative to its revenue,
operating costs, balance sheet assets. or
shareholders equity over time, using data from a
specific point in time.

Important Profitability Ratio are -

Gross Profit Ratio
Operating Profit Ratio
Operating Ratio
Net Profit Ratio
Return on Investment.
 Gross Profit Ratio -
The Gross Profit Ratio measures a company profitability
by comparing its gross profit to net sales. It reflects the
portion of net sales that. It reflects the portion of net
sales that constitution gross profit.

Gross Profit Ratio = Gross Profit *100

RFO

For year 2024 = 1,409,326 - 459,397 *100 = 67.40 %

1,409,326
For year 2023 = 1,175,229 - 466,700 *100 = 60.29 %
1,175,229

Interpretation - Stable or increasing values would signal

improved sales efficiency relative to production costs.
Monitoring this can highlight cost control measures'
effectiveness.
 Operating Profit Ratio -
Operating Profit Ratio measures the relation between
operating profit and revenue from operations i.e, Net
sales

Operating Profit Ratio = Operating Profit *100

RFO

For year 2024 = 170,404 *100 = 12.09 %

1,409,326
For year 2023 = 101,591 *100 = 8.64 %
1,175,229

Interpretation - Rising values imply better operational

efficiency and control over non-production expenses,
contributing to overall profitability.
 Operating Ratio -
Operating Ratio shows the efficiency of a company’s
management by comparing that total operating
expenses of a company to net sales.

Gross Profit Ratio = Cost of RFO + Op. Exp *100

Net RFO

For year 2024 = 1,277,470 *100 = 90.64 %

1,409,326

For year 2023 = 1,095.251 *100 = 93.19 %

1,175,229

Interpretation - Lowering this ratio would indicate

more revenue is retained as profit, suggesting cost
efficiency.
 Net Profit Ratio -
The net profit percentage is the ratio of after tax
profit to net sales. It reveals the remaining profit after
all cost of production, administration and financing have
been deducted from sales and income taxes.

Net Profit Ratio = Cost of Net Profit After Tax *100

RFO

For year 2024 = 132,094 *100 = 9.37 %

1,409,326
For year 2023 = 80,492 *100 = 6.85 %
1,175,229

Interpretation - Increased profitability per revenue unit

reflects strong bottom-line growth, suggesting effective
cost management and revenue growth in 2024.
 Return On Investment -
Return on investment is a performance measure use to
evaluate the efficiency of profitability of an investment or
compare the efficiency of a number of different
investment.

Return On = Profit Before Int. & Tax & Dividends *100

Investment Ratio Capital Employed

For year 2024 = 132,094 *100 = 11,98 %

1,102,848
For year 2023 = 80,492 *100 = 9.68 %
832,787

Interpretation - Higher ROI in 2024 shows improved

utilization of assets to generate profits, indicating better
investment effectiveness and overall profitability.
Cash - Flow Statement
Cash Flow Statement is a statement that shows
the cash flow i.e, inflow and outflow of cash and
cash equivalents during that accounting period
from operating, investing and financing activities.

Showing cash flow under there heads are :-

Cash Flow from operating activities.
Cash Flow From investing activities.
Cash Flow from financing activities.

Operating Activities :-
Operating activities are the principal revenue
activities of the enterprise and the other
activities that are not investing are financing
activities.
Standalone Statement of Cash Flows
for the year ended March 31, 2024
I
(All amounts in million, unless otherwise stated)

Notes Year ended Year ended

Particulars Page No.
No. 31.03.2024 31.03.2023
A. Cash flow from operating activities:
Profit before tax 170,404 101,591

Adjustments for:
2 340 30,223 28,233
Depreciation and amortisation expenses 7 339 1,932 1,866
Finance costs 2 338 (984) (1,852)
Interest income 6 338 (658) (268)
Dividend income 2 340-341 481 115
Net loss on sale/discarding of property, plant and equipment 3 338 (901) (1,809)
Net gain on sale of investments in debt mutual funds 2 338 (36,005) (17,279)
Fair valuation gain on investment in debt mutual funds 3 (42) 209
Unrealised foreign exchange (gain)/loss 2
164,450 110,806
Operating Profit before working capital changes 8
Adjustments for changes in working capital: 2
- (Increase)/decrease in loans (non-current) 7 327 1 -
3
- (Increase)/decrease in other financial assets (non-current) 9 328 (242) (210)
2
- (Increase)/decrease in other non-current assets 12 329 2,33 (1,365)
3
- (Increase)/decrease in inventories 10 328 2 (7,507)
- (Increase)/decrease in trade receivables 8 327 1,64
(13,099) (12,569)
- (Increase)/decrease in loans (current) 7 327 2 (30) 8
- (Increase)/decrease in other financial assets (current) 9 328 3,839
1,735
- (Increase)/decrease in other current assets 12 329 (3,050)
(8,895)
- Increase/(decrease) in non-current provisions 17 333-334
477 43
- Increase/(decrease) in other non-current liabilities 19 336
5,767 4,038
- Increase/(decrease) in trade payables 20 336-337
28,110 20,067
- Increase/(decrease) in other financial liabilities (current) 16 333
- Increase/(decrease) in current provisions 17 333-334 (3,835) (3,077)
- Increase/(decrease) in other current liabilities 19 336 1,212 1,011
7,602 2,559
Cash generated from operating activities 187,227 114,593
- Income taxes paid (net) (35,557) (22,313)
Net Cash from operating activities 151,670 92,280
B. Cash flow from investing activities:
Payments for purchase of property, plant and equipment and capital 4 318-322 (67,269) (61,154)
work in progress
Payments for purchase of intangible assets and intangible assets
5 322-323 (2,808) (2,307)
under development
Proceeds from sale of property, plant and equipment
4 318-322 440 987
Payments for purchase of investment in equity shares of associate/ 6 323-326 (800) -
joint venture/subsidiary company
Proceeds from sale of debt mutual funds
6 323-326 619,327 616,054
Payments for purchase of debt mutual funds
6 323-326 (657,099) (664,948)
Payments for purchase of unquoted investments
6.4 326 (260) (1,020)
Proceeds from fixed deposits with bank
11.2 329 - 30,000
Interest received
23 338 983 1,938
Dividend received
23 338 658 268
Net Cash from/(used in) investing activities
(106,828) (80,182)

Maruti Suzuki India Limited | Annual Integrated Report 2023-24

Standalone Statement of Cash Flows
for the year ended March 31, 2024
I
(All amounts in million, unless otherwise stated)

Notes Year ended Year ended

Particulars Page No.
No. 31.03.2024 31.03.2023
C. Cash flow from financing activities:
Movement in short term borrowings (net) 15 333 (11,827) 8,339
Principal elements of lease payments 35 359-360 (133) (444)
Finance cost paid 26 339 (1,472) (1,854)
Payment of dividend on equity shares 14.4 332 (27,187) (18,125)
Net Cash from/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents (40,619) (12,084)
Cash and cash equivalents at the beginning of the year 4,223 14
Cash and cash equivalents at the end of the year 334 320
Cash and cash equivalents comprises: 4,557 334
Balance with Banks
11.1 329 4,557 334
4,557 334
Other bank balances:
Unclaimed dividend accounts 11.2 329 43 43
43 43

The accompanying notes are forming part of these standalone financial statements.
For and on behalf of the Board of Directors

In terms of our report attached

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)

ALKA CHADHA HISASHI TAKEUCHI KENICHIRO TOYOFUKU

Partner Managing Director and CEO Director (Corporate Planning)
(Membership Number 93474) DIN: 07806180 DIN: 08619076

ARNAB ROY SANJEEV GROVER

Chief Financial OfficerExecutive Officer and Company Secretary
ICSI Membership No: F3788
Place: New Delhi Place: New Delhi
Date: April 26, 2024 Date: April 26, 2024

Maruti Suzuki India Limited | Annual Integrated Report 2023-24

 Conclusion
From this project, it is concluded that ratio
analysis can provide insight to companies
relative financial health and future
prospects.
It can yield data about profitability, liquidity
earning extended viabuity, and more.

The results of such comparison can mean

more powerful decision making when it
comes to selecting companies in which to
invest.
Bibliography
www.slideshare.com
www.pinterest.com
www.moneycontrol.com
www.marutisuzukiindia.com
www.capitalmarket.com
NCERT Book (Accounts)
T.S Grewal (Volume - 3)
www.youtube.com
www.wikipedia.org