mc080201777 propsal accepted

8/8/2019 Mc080201777 Propsal Accepted

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Financial Analysis of Suzuki Motors

Financial Analysis of Pak Suzuki Motors and Hino Pak Motors

NAME : MUHAMMAD WAQAS

STUDENT ID : Mc080201777

MBA 4TH

SEMESTERVIRTUAL UNIVERSITY OF PAKISTAN

SUBMISSION DATE:

21TH DECEMBER, 2009.

Virtual University of Pakistan MBA Finance

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AACKNOWLEDGMENTCKNOWLEDGMENT

Praise to Be ALLAH, Lord of the worlds, The Beneficient,The Merciful, Lord of

The Day of Judgement,Thee (Alone) We Worship, And Thee (Alone) we Ask For

Help. Show Us The Straight Path, The Path of Those whom Thou Hast Favored. Not

the Path of Those Who Earn Thin wrath or Of Those Who Go Astray.

(Holy Quran, Surah Al-Fatiha)


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First of all I am thankful to Allah who blessed us the potentialand ability to accomplish this proposal of project.

Then we deem it a great honor and privilege to record sense for

gratitude to the respected teacher for the construction and exuberantstage of teaching.


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TTABLEABLEOFOF CCONTENTSONTENTS

Topic: Page #

1. Introduction of project 05

2. Description of project 05

3. Rationale 05

4. Background 06

5. Objective and Significant 09

6. Project Proceeding 09

7. Project Methodology 13

8. Bibliography 14


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i) CHAPTER 1:

Introduction of the Project:

a)

This project is related to financial statement analysis of two

companys i.e. Suzuki Motors Vs Hino Pak motors. In this project

all calculation will be carried regarding financial analysis. This

material will help us to see the financial position of the companies,

compare whether the companies going to profitable or losses and

what types of strategy will help us to make it survival.

b) Description of the Project:

Description of the project includes, ration analysis, SWOT

analysis, horizontal analysis, vertical analysis, trend analysis

review of descriptive information and Comparison etc.

c) Rationale

This all techniques will help us to compare whether the

companies going to loss or profit and what types of fund needed

to company. What the Suzuki motors or Hino pak motor requirecapital through equity or debt etc.


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ii)

BACKGROUND:

In background you are supposed to write about the

project background instead of that Pak Suzuki or other

companys.

Give details for any previously conductedproject/research work relevant to your topic and project.

Refer any article, magazine, industry analysis you

consulted for this topic, including current fact and

figures.

Pak Suzuki Motor Company Limited (PSMC) is public limited

company with its shares quoted on Stock Exchanges in Pakistan.

The Company was formed in August 1983 in accordance with the

terms of a joint venture agreement between Pakistan Automobile

Corporation Limited (representing Government of Pakistan) and

Suzuki Motor Corporation (SMC) Japan.

The Company started commercial production in January 1984 withthe primary objective of progressive manufacturing, assembling

and marketing of Cars, Pickups, Vans, and 44 vehicles in

Pakistan. The Companys long term plans inter-alia includes

tapping of export markets.

The foundation stone laying ceremony of the Companys existing

plant located at Bin Qasim was performed in early 1989 by the

Prime Minister then in office. By early 1990, on completion of first

phase of this plant, in-house assembly of all the Suzuki engines

started.


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In 1992, the plant was completed and production of the Margalla

Car commenced. Presently the entire range of Suzuki products

currently marketed in Pakistan is being produced at this plant.

Under the Governments privatization policy, the Company was

privatized and placed under the Japanese management in

September 1992. At the time of privatization, SMC increased its

equity from 25% to 40%. Subsequently, SMC progressively

increased its equity to 73.09% by purchasing remaining shares

from PACO. The total foreign investment brought in by SMC

Japan since inception stands at Rs. 1027.47 million.

The Suzuki Management immediately after privatization startedexpansion of the existing plant to increase its installed capacity to

50000 per annum. The expansion was completed in July 1994.

However capacity remained substantially under utilized until 2002

because of economic recession. Company increased capacity in

phases. The first phase was completed in January 2005 when

capacity was enhanced to 80000 vehicles per annum. In the second

phase it has further been raised to 120000 vehicles per year by

January 2006.


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Background of Hino Pak Motors.

Hinopak Motors Limited assembles, manufactures and markets

world renowned Hino diesel trucks and buses in Pakistan. The

Company has held the top position in the domestic market for

medium and heavy-duty vehicles for 17 consecutive years and is

highly acclaimed for quality and technological excellence.

Backed by Hino's expertise Hinopak has achieved standard ofquality and excellence that rival the best in the region. With over

39,000 vehicles on road, Hinopak has gained 65% market share

making it the largest manufacturer in medium and heavy-duty

truck and bus industry in Pakistan.

HinoPak's product range has been designed and built in Hino's

traditions of automotive excellence to be the leader in its category

and the main emphasis has been given to passengers' safety &

comfort.


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iii) Objectives:

The objective of this project is to gain proficiency in the field of

financial analysis and research. All facts and figures will be

located true and fair. For this I personally visited two companies

and suggest about my project.

IV) Significance:Here you need to mention what is your project significance for thestakeholders and you?Stakeholders include management of the companies,

shareholders, customers, investors and all related persons that can be

influenced and that can influence by the decisions and strategies of thecompanies.

I will visit to Suzuki Company As Well As Hino Pak Company.

Through the project i will collect data of income statement,

balance sheet and inflow statement which would help to me for

preparations.

Outcome of the research considered helping material or rough

material thorough which project will be prepared.

CHEPTER 2:

PROJECT PROCEEDINGS:PROJECT PROCEEDINGS:

The expected working of the final project included following

headings and subheadings. In these headings there may be detailed


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information (FSA analysis) regarding Suzuki Pak motors and Hino

pak motors.


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1. Executive Summary

2. Introduction

3. Vision

4. Mission

5. History

6. Company Profile

In company profile it includes the following information. Exclude

unnecessary information in the project. Your financial analysis is

already too much lengthy.

CCOMPANYOMPANY NNAMEAME::

YYEAREAROFOFESTABLISHMENTESTABLISHMENT::

LLOCATIONOCATION::

TTOTALOTAL AAREAREA::

PPRODUCTIONRODUCTION CCAPACITYAPACITY::

C.E.O:C.E.O:

DDEPTYEPTY. M. MANAGINGANAGING DDIRECTORIRECTOR::

NNOO. O. OFFEMPLOYEESEMPLOYEES::

PPRODUCTIONRODUCTION CCAPACITYAPACITY::

CCOMPANYOMPANY CCOMPETITORSOMPETITORS::

BBUSINESSUSINESS TTYPEYPE::

7. Hierarchy Just add headings here


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In hierarchy there is companys structure. It tells us who the

information goes down i.e. how the information transferred, it may

be centralization or decentralization.

8. Management Philosophy of the industries.

Pakistans automobile industry has become a major contributor to

GDP. The industry for cars and light commercial vehicles

witnessed a growth of 17% during the calendar year. Automobile

industry is mother of all industries. Therefore growth of

automobile industry benefits other industries as well.

9. Caring for Environment

As a responsible automobile manufacturer, Pak Suzuki and Hino

Pak motors has always responded positively and promptly to the

cause of the environment.

I) Introduction of CNG

10. Products briefly give details of products.

This portion includes the currently products of both companies i.e.

Pak Suzuki motors and Hino pak motors. It includes Mehran,bolan van, Ravi pick-up and various.

11. Financial Analysis

a) Ration Analysis


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I Liquidity Ration

II Solvency Ration

III Activity Ration

IV Profitability Ration

V Investor Ration

VI Market Ration etc.

b) Horizontal Analysis

c) Vertical Analysis

d) Review of Descriptive information

e) Comparison of both companies.Also make an industry

comparison.

In this comparison I will choose two techniques.

i) Trend Analysis

ii) Industrial Averages comparison with competitors.

12. SWOT Analysis

13. Conclusions: Your conclusion should be based on true facts

and figures from your financial analysis.

14. Recommendations

15. Bibliography

NNOTOT::


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There may be some changes in project proceeding when I submit

project but it is confirm that I will go with the help of following

above mentioned techniques.

CHEPTER 3CHEPTER 3

1. PROJECT METHODOLOGY:Your this part is not

according to the format we demanded from you to follow.

Where are the rest of the headings?

I) Secondary Sources

This Project is related to FSA in which all required

information to complete the project will be

readymade (Secondary Source) i.e. profit and loss

accounts, balance sheet, cash flow statement etc.

In my project, I achieved all data with the help ofinternet. I have also attached the link shown in

bibliography part through which I achieved my all

information related to annual accounts etc.


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I) Pak Suzuki motors.

For Pak Suzuki motors I will choose 2005-2006

annual accounts for ration analysis.

II) Hino Pak motors.

For Hino pak motors I will choose 2006-2007

annual accounts for ration analysis.

As per asking you suggest most recent accounts. I

choose above mentioned accounts with my full try.


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FFINANCIALINANCIAL RREPORTEPORT 20062006 OFOF SUZUKI MOTORS:SUZUKI MOTORS:

WWEBSITESEBSITES::

www.globalsuzuki.com

www.paksuzukimotors.com

www.ask.comwww.wikipedia.com

www.yahoosearch.com

www.google.com

HINO PAK MOTORS 2007 report.

http://www.hinopak.com/report_2007.htm

www.Ask.com

Google.com


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http://www.hinopak.com/report_2007.htmhttp://www.hinopak.com/report_2007.htm


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Market search

Virtual University of Pakistan MBA Finance 18

mc080201777 propsal accepted

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