bajaj auto annual report_secc_grp6

7/27/2019 Bajaj Auto Annual Report_secc_grp6

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BAJAJ AUTO- 5th ANNUALREPORT ANALYSIS

Presented by

Deepak Nesarikar(12135)

Dhrubajyoti Sahu(12136)

Dinesh Chand(12137)

Varun Kumar (12175)

Shreetha T.S.(12176)

GROUP VI -SectionC



BAJAJ AUTO- 5th ANNUAL REPORTANALYSIS

Q1.Who are the auditors of the company? What istheir 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 forthe year ended 31st Mar2012,as stipulated inclause 49 of the listing agreements of the saidcompany with stock exchanges in India.




Q2. What is the performance of Commercialvehicles segment of the company compared to theindustry? What inference may be drawn from same?

Domestic sales for 3 wheelers across the industrydeclined by 2.4% in ‘12. Bajaj Auto saw amarginal fall in sales by 1.3%. Despite thiscompany’s market share has increased from39.1% in ‘11 to 39.5% in ‘12.




Q3. Referring to the standalone financial statements, what is thedifference between Basic and diluted EPS? How does it compareover FY 11-12?

Basic EPS is reported only for equity share capital. Computationdepends on company's simple capital structure with noconvertible debentures and convertible preference share capitaland stock options instruments that can increase the number of equity shares.

Diluted EPS (complex capital structure)is reported for securitiesthat may be converted into equity share capital. The conversionhas the potential of reducing or diluting the EPS by increasingthe number of equity shares.




It represents the increase in loss per shareresulting from assumption that all potentiallydilutive securities would be converted into equityshares.

Less in'12(3004 Cr) as compared to '11(3339 Cr)due to reduction in PAT and not because of dilution.

.




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/otherthan these)

C)other current liabilities(current maturity of long termborrowings, Annuity payable to VRS optees, Advanceagainst orders, unclaimed maturity deposits and interestsaccrued thereon, security deposits, Unclaimed dividend,book overdraft, other payables)




D)short term provisions

Provision for employee benefits(gratuity,compensated absences, welfare scheme)

Other provisions(warranties, tax, dividend,proposed dividend, valuation losses on derivativehedging instruments)




Q5.Referring to the Consolidated financialstatements, what is the movement reflected under‘Provisions’ over the year FY 11-12? What is the

implication of the same on the consolidated




Long term provisions(113.16 Cr in ‘12 ascompared to 125.54Cr in ‘11) have decreasedwhile short term provisions have increased(2063Cr in’12 as compared to 1431Cr in ‘11).

These liabilities have implications to turn into baddebt expense in future and ultimately bring downthe retained earnings .



THANK YOU

bajaj auto annual report_secc_grp6

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