Proj Yamaha

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Ratio Analysis on YAMAHA Limited

Submitted by: Roll No.

Harshal Changediya 27

Bhagwan Dadas 33

Karan Bohra 20

Chandrashekhar Reguraman 26

A Report submitted to METs Institute of Management in partial fulfillment of tha

requirement for the award MMS for the year.

Under the guidance of:

Prof. L.N. Chopade

Faculty, Financial Accounting

METs Institute Of Management, Mumbai


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CERTIFIFICATE

This is to certify that Project titled Study of Ratio Analysis on YAMAHA Limitedis

based on the original study conducted by:

Harshal Changediya

Bhagawan Dadas

Karan Bohra

Chandrashekhar Reguraman

under my guidance and this had not formed a basis for the award of any other

degree of this institute/university.

Place: Mumbai

Date: 02, Dec. 2013.

Facultys Sign.

METs Institute Of Management, Mumbai


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Certificate from the Organization

This is to certify that

Harshal Changediya

Bhagawan Dadas

Karan Bohra

Chandrashekhar Reguraman

have successfully completed a study on Ratio Analysis-a technique of Financial

Analysis and have submitted the project report on the same.

The study conducted was satisfactory. We wish them all the Best.

Sign of the officer


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PREFACE

In assessing the significance of various industry financial data, experts engage in

financial ratio analysis, which is the process of determining and evaluating

financial ratios. A financial ratio is a relationship that indicates something about

an industry's activities, such as the ratio between the industry's current assets

and current liabilities or between its accounts receivable and its annual sales.

The basic sources for these ratios are the company financial statements within

the industry that contain figures on assets, liabilities, profits, and losses. Industry

ratios are only meaningful when compared with other information. Since

individual companies are most often compared with industry data, ratios help an

individual understand a company's performance relative to that of competitorsand are often used to trace performance over time.

.


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ACKNOWLEDGEMENT

We would sincerely like to give my heartfelt thanks to our parents. Any amount of

thanks given to them will never be sufficient.

We would like to thank the METs Institute Of Management, Mumbai; University

of Mumbai, for introducing the subject of FINANCIAL ACCOUNTING in the MMS

Course, thereby giving the student a platform to abreast with changing business

scenario, with the help of theory as a base and practical as a solution.

We would like to thank Prof. L.N. Chopade for his valuable support and guidance

whenever needed, without which the accomplishment of the task would have

never been possible. We also thank him for giving this opportunity to explore the

subject to this extent.

We also feel heartiest sense of obligation for library staff members who helped in

collection of data and materials and also in this processing as well as in drafting

manuscript.

Last, but not the least, we would also like to thank my friends for always being

there.


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Executive Summary

Yamaha Motor Company Limited is a Japanese motorized vehicle-producing

company. The company is currently headed by Hiroyuki Yanagi. Yamaha Motor ispart ofYamaha Corporation and its headquarters is located inIwata, Shizuoka.

Along with expanding Yamaha Corporation into the world's biggestpiano maker,

then YamahaCEOGenichi Kawakami took Yamaha into the field of motorized

vehicles on July 1, 1955. The company's intensive research into metalalloys for

use in acoustic pianos had given Yamaha wide knowledge of the making of

lightweight, yet sturdy and reliable metal constructions. This knowledge waseasily applied to the making of metal frames and motor parts for motorcycles.

Yamaha Motor producesmotorcycles,all-terrain vehicles,boats,marine engines

includingoutboards,automobile engines,personal watercraft andsnowmobiles.

Comprehensive financial analysis reports accentuate the strengths and

weaknesses of a company. Communicating the companys strengths and

weaknesses in an accurate and honest manner is helpful in convincing the

investors to invest in your business.
http://en.wikipedia.org/wiki/Yamaha_Corporationhttp://en.wikipedia.org/wiki/Iwata,_Shizuokahttp://en.wikipedia.org/wiki/Pianohttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Genichi_Kawakamihttp://en.wikipedia.org/wiki/Alloyshttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Boathttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Personal_watercrafthttp://en.wikipedia.org/wiki/Snowmobileshttp://en.wikipedia.org/wiki/Snowmobileshttp://en.wikipedia.org/wiki/Personal_watercrafthttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Boathttp://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Alloyshttp://en.wikipedia.org/wiki/Genichi_Kawakamihttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Pianohttp://en.wikipedia.org/wiki/Iwata,_Shizuokahttp://en.wikipedia.org/wiki/Yamaha_Corporation


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Contents

Sr.No Title of chapter Page No

1 COMPANY PROFILE 8

2 CURRENT SCENARIO 8

3 BALANCE SHEET 9

4 PROFIT AND LOSS

ACCOUNT

10

5 RATIO INTERPRETATION 11

6 Conclusion 20

7 Bibliography 21


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COMPANY PROFILE

About India Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in 1996.

However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary ofYamaha Motor Co., Ltd, Japan (YMC).

In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor inthe motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)".

I

CURRENT SCENARIO

Yamaha continues to soar high, Domestic Sales up by 35.2 % in September.

Sep 06, 2011

Yamaha zips ahead with the launch of the YZF-R15 version 2.0Sep 05, 2011

Fourth Leg of Yamaha YZF-R15 One Make Race - Season 2011 rounds off in style.Sep 01, 2011

Yamaha upbeat about upcoming festive season, registers a domestic sales growth of 32% inAugust.

Aug 01, 2011

Yamaha continues to ride high on sales in July 2011.


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Mar '11 Mar '10 Mar '09 Mar '08

Sources Of Funds

Total Share Capital 289.37 144.68 144.68 144.68

Equity Share Capital 289.37 144.68 144.68 144.68

Share Application Money 0 0 0 0

Preference Share Capital 0 0 0 0

Reserves 4,620.85 2,783.66 1,725.01 1,442.9

Revaluation Reserves 0 0 0 0

Networth 4,910.22 2,928.34 1,869.69 1,587.5

Secured Loans 23.53 12.98 0 6.95

Unsecured Loans 301.62 1,325.60 1,570.00 1,327.3

Total Debt 325.15 1,338.58 1,570.00 1,334.3

Total Liabilities 5,235.37 4,266.92 3,439.69 2,921.9

Application Of Funds

Gross Block 3,395.16 3,379.25 3,350.20 2,994.6

Less: Accum. Depreciation 1,912.45 1,899.66 1,807.91 1,726.0

Net Block 1,482.71 1,479.59 1,542.29 1,268.6

Capital Work in Progress 149.34 120.84 106.48 34.74

BALANCE SHEET


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PBDIT 4,431.30 2,542.71 1,089.87 1,255.48

Interest 1.69 5.98 21.01 5.16

PBDT 4,429.61 2,536.73 1,068.86 1,250.32

Depreciation 122.84 136.45 129.79 173.96

Other Written Off 0 0 0 1.12

Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24

Extra-ordinary items 46.77 26.87 18.72 59.32

PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56

Tax 1,011.02 710.12 301.61 378.78

Reported Net Profit 3,339.73 1,702.73 656.48 755.95

Total Value Addition 1,313.99 1,153.53 1,077.51 1,049.75

Preference Dividend 0 0 0 0

Equity Dividend 1,157.47 578.73 318.3 289.37

Corporate Dividend Tax 187.77 96.12 54.1 49.18

Per share data (annualized)

Shares in issue (lakhs) 2,893.67 1,446.84 1,446.84 1,446.84

Earnings Per Share (Rs) 115.42 117.69 45.37 52.25

Equity Dividend (%) 400 400 220 200

Book Value (Rs) 169.69 202.4 129.23 109.73

PROFIT AND LOSS ACCOUNT


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Mar, 11 Mar , 10 Mar , 09 Mar , 0

Investment Valuation Ratios

Face Value 10 10 10 10

Dividend Per Share 40 40 22 20

Operating Profit Per Share (Rs) 112.4 173.02 75.64 75.01

Net Operating Profit Per Share (Rs) 568.54 816.49 601.32 610.1

Free Reserves Per Share (Rs) 158.97 190.09 106.56 99.73

Bonus in Equity Capital 89.45 78.91 78.91 78.91

Profitability Ratios

Operating Profit Margin (%) 19.76 21.19 12.57 12.29

Profit Before Interest And Tax Margin

(%) 18.56 19.78 10.88 10.03

Gross Profit Margin (%) 19.02 20.03 11.08 10.32

Cash Profit Margin (%) 15.7 16.2 10.55 10.48

Adjusted Cash Margin (%) 15.7 16.2 10.55 10.48

Net Profit Margin (%) 19.8 14.23 7.4 8.32

Adjusted Net Profit Margin (%) 19.8 14.23 7.4 8.32

Return On Capital Employed (%) 67.57 59.01 32.8 39.71

Return On Net Worth (%) 68.01 58.14 38.92 47.61

Adjusted Return on Net Worth (%) 51.42 61.53 47.78 48.91

Return on Assets Excluding

Revaluations 169.69 202.4 116.56 109.73

Return on Assets Including

Revaluations 169.69 202.4 116.56 109.73

RATIO INTERPRETATION


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Return on Long Term Funds (%) 69.67 59.19 35.36 39.71

Liquidity And Solvency Ratios

Current Ratio 0.8 0.69 0.84 0.88

Quick Ratio 0.71 0.55 0.73 0.64

Debt Equity Ratio 0.07 0.46 0.84 0.84

Long Term Debt Equity Ratio 0.03 0.45 0.71 0.84

Debt Coverage Ratios

Interest Cover 2,093.39 421.06 53.71 224.91

Total Debt to Owners Fund 0.07 0.46 0.84 0.84

Financial Charges Coverage Ratio 2,166.08 443.88 59.89 258.84

Financial Charges Coverage Ratio Post

Tax 2,049.86 308.56 38.42 181.43

Management Efficiency Ratios

Inventory Turnover Ratio 32.8 28.87 28.64 29.33

Debtors Turnover Ratio 51.77 37.41 27.45 21.93

Investments Turnover Ratio 32.8 28.87 28.64 29.33

Fixed Assets Turnover Ratio 4.85 3.5 2.6 2.95

Total Assets Turnover Ratio 3.14 2.77 2.53 3.02

Asset Turnover Ratio 4.85 3.5 2.6 2.95

Average Raw Material Holding 5.58 7.91 6.39 5.24

Average Finished Goods Held 9.15 9.13 9.97 10.73

Number of Days In Working Capital -26.08 -41.29 -8.31 -9.73

Profit & Loss Account Ratios

Material Cost Composition 72.72 69.3 74.73 76.58

Imported Composition of Raw4.06 3.59 2.35 2.37


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Materials Consumed

Selling Distribution Cost Composition 2.45 3.23 3.97 3.98

Expenses as Composition of Total Sales 27.74 27.67 30.82 23.53

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 40.27 39.63 56.72 44.78

Dividend Payout Ratio Cash Profit 38.85 36.69 47.36 36.36

Earning Retention Ratio 46.73 62.55 53.79 56.41

Cash Earning Retention Ratio 49.2 65.19 60.2 64.43

Adjusted Cash Flow Times 0.12 0.69 1.68 1.4

Earnings Per Share 115.42 117.69 45.37 52.25

Book Value 169.69 202.4 129.23 109.73


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BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Yamaha_Motor_Company

http://www.yamaha-motor-india.com/

http://www.moneycontrol.com/news-topic/yamaha-motor-company/
http://en.wikipedia.org/wiki/Yamaha_Motor_Companyhttp://en.wikipedia.org/wiki/Yamaha_Motor_Companyhttp://www.yamaha-motor-india.com/http://www.yamaha-motor-india.com/http://www.moneycontrol.com/news-topic/yamaha-motor-company/http://www.moneycontrol.com/news-topic/yamaha-motor-company/http://www.moneycontrol.com/news-topic/yamaha-motor-company/http://www.yamaha-motor-india.com/http://en.wikipedia.org/wiki/Yamaha_Motor_Company

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