A STUDY ON TREND ANALYSIS OF FINANCIAL

STATEMENT WITH SPECIAL REFERENCE TO TVS

MOTOR COMPANY LIMITED

A PROJECT REPORT

Submitted by

GUNALISA A (421122301017)

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

IN

FACULTY OF MANAGEMENT STUDIES

IFET COLLEGE OF ENGINEERING

(An Autonomous Institution)
Approved by AICTE, New Delhi and Accredited by NAAC & NBA
Affiliated to Anna University, Chennai-25
Gangarampalayam, Villupuram – 605 108

JUNE 2024

i
 IFET COLLEGE OF ENGENEERING
BONAFIDE CERTIFICATE

Certified that this project report “A STUDY ON TREND

ANALYSIS OF FINANCIAL STATEMENT WITH SPECIAL
REFERENCE TO TVS MOTOR COMPANY LIMITED ” is the
bonafide work of “GUNALISA A (421122301017)” who carried out the
project work under my supervision.

Dr. A. ARUN, M.B.A., Ph.D. Ms. A. SUGANTHI, M.B.A.,

HEAD OF THE DEPARTMENT SUPERVISOR
Assistant Professor Assistant Professor
IFET College of Engineering IFET College of Engineering
Villupuram - 605108 Villupuram - 605108

Submitted to the Viva voce Examination held on _____________________

INTERNAL EXAMINER EXTERNAL EXAMINER

ii
 DECLARATION

I hereby declare that the project entitled “A STUDY ON TREND ANALYSIS

OF FINANCIAL STATEMENT WITH SPECIAL REFERENCE TO TVS
MOTOR COMPANY LIMITED.” submitted to Anna University, Chennai, in
partial fulfillment of Master of Business Administration during the year 2022-
2024. It is the record of original work done by me under the guidance of Ms. A.
SUGANTHI, MBA., Assistant Professor, Department of Management Studies,
IFET college of Engineering, Villupuram. It is assured that this is my original
work and have not been submitted to any other university for the award of MBA
degree.

PLACE: (GUNALISA A)
DATE: (421122301017)

iii
 ACKNOWLEDGEMENT

The successful completion of any task would be incomplete without

mentioning names of persons who helped to make it possible. I take this
opportunity to express my gratitude in few words and respect to all those who
helped me in the completion of this project work.
First of all, I thank the lord almighty for giving me the strength and
courage to complete this project work.
I express my deep gratitude to Mr. K.V RAJA, Chairman, Mr. K.
SHIVRAM ALVA, Secretary, IFET College of Engineering.
I am extremely grateful to our principal Dr. G. MAHENDRAN, M.
Tech., Ph. D, and our Vice Principal and Dean Academics Dr. S. MATILDA,
M.S., Ph.D. for providing necessary and essential facilities to do project works.
I express my sincere thanks and deep sense of gratitude to Dr. A. ARUN,
MBA. Head of the department, Department of Management studies, IFET
College of Engineering for providing me an encouragement, support and
guidance to complete this project work successfully. I would like to take this
opportunity to express my heartfelt gratitude to my internal guide Ms. A.
SUGANTHI, MBA., Assistant Professor, Department of the Management
Studies, IFET College of Engineering, who encourage and constant evidence in
my project. He gave me the advance systematic approach and a new dimension
to my project.
I convey my heartiest thanks to my external guide Mr. P. NAVEEN
KUMAR (Executive-Finance), for his support and guidance.
Finally, I express my sincere thanks and deep sense of gratitude to my
parents and friends for giving timely advice in all the ways and in all aspects for
the success of this project work.

GUNALISA A
[Reg.No:421122301017]

iv
 ABSTRACT

The project report was related to a study on trend analysis of financial

statement with special reference to TVS Motor company limited. The
project report’s first chapter, which provides an overview of the
theoretical framework of the financial tool utilized, industry-specific
information on key players, industry competitiveness, and their
products and needs, the study's scope and purpose, and information
about the company's profile, including its vision, mission, and quality
standards. A review of the study-related literature is included in the
second chapter. The research design, methodology, data collection
strategy, financial instruments utilized, and specimen areall covered in
the third chapter. The fourth chapter deals with data analysis and
interpretation. Various ratios, trend analysis, and competitor analysis
from the comparative statement on TVS Motor and Hero Crop financial
statement are used to examine the company's financial statement. The
project's findings, recommendations, and conclusion are covered in the
last chapter.

v
 TABLE OF CONTENT
CHAPTER CONTENT PAGE NO
NO
ABSTRACT v
TABLE OF CONTENT vi
LIST OF TABLES viii
LIST OF FIGURES ix
LIST OF SYMBOLS AND ABBREVIATIONS x
I INTRODUCTION
1.1 INTRODUCTION TO FINANCE 1
1.1.1 Financial Statement Analysis 1
1.1.2 Techniques of Financial Statement 2
Analysis
1.1.3 Ratio Analysis 2
1.1.4 Importance of Ratio Analysis 3
1.1.5 Trend Analysis 3
1.1.6 Types of Trend Analysis 3
1.1.7 Comparative Statement Analysis 4
1.1.8 Competitor Analysis from Comparative 4
Statement
1.1.9 Importance of Comparative Statement 4
1.2 INDUSTRY PROFILE 5
1.3 COMPANY PROFILE 6
1.3.1 Company Vision 9
1.3.2 Company Mission 10
1.3.3 Company Quality Policy 10
1.3.4 Milestone 11
1.3.5 Organizational Structure 14
1.3.6 Products and Services 15
1.3.7 Departments and Their Functions 18
1.3.8 Achievements and Awards 22
1.3.9 Competitors 24

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 1.4 NEED FOR THE STUDY 25

1.5 SCOPE OF THE STUDY 26

1.6 OBJECTIVES OF THE STUDY 27
1.7 LIMITATIONS OF THE STUDY 38
II REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE 29
III RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY 37
3.1.1 Research Design 37
3.1.2 Data Collection 37
3.1.3 Financial Tools Used 38
IV DATA ANALYSIS AND INTERPRETATION
4.1 DATA ANALYSIS AND INTERPRETATION 45
4.1.1 Ratio Analysis 45
4.1.2 Trend Analysis 53
4.1.3 Competitor Analysis from Comparative 58
Statement
V FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 FINDINGS, SUGGESTIONS AND 79
CONCLUSION
5.1.1 Findings 79
5.1.2 Suggestions 81
5.1.3 Conclusion 82
REFERENCES 83
ANNEXURE I 84
ANNEXURE II

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 LIST OF TABLES
TABLE NO TITLE PAGE NO
1.1 Company Information 6
1.2 Milestone 11
4.1 Calculation of Current Ratio 45
4.2 Calculation of Quick Ratio 46
4.3 Calculation of Cash Ratio 47
4.4 Calculation of Debt-to-Equity Ratio 48
4.5 Calculation of Shareholder’s Equity Ratio 49
4.6 Calculation of Debt-to-Asset Ratio 50
4.7 Calculation of Equity Ratio 51
4.8 Calculation of Fixed Asset Ratio 52
4.9 Trend Analysis on Liabilities 53
4.10 Trend Analysis on Assets 55
4.11 Liabilities of 2019-2020 58
4.12 Assets of 2019-2020 59
4.13 Liabilities of 2020-2021 60
4.14 Assets of 2020-2021 61
4.15 Liabilities of 2021-2022 62
4.16 Assets of 2021-2022 63
4.17 Liabilities of 2022-2023 64
4.18 Assets of 2022-2023 65
4.19 Liabilities of 2019-2020 66
4.20 Assets of 2019-2020 67
4.21 Liabilities of 2020-2021 68
4.22 Assets of 2020-2021 69
4.23 Liabilities of 2021-2022 70
4.24 Assets of 2021-2022 71
4.25 Liabilities of 2022-2023 72
4.26 Assets of 2022-2023 73

viii
 LIST OF FIGURES
FIGURE NO TITLE PAGE NO
1.1 Logo 6
1.2 Organizational Structure 14
1.3 TVS Raider Motor Cycle 15
1.4 TVS Jupiter 125 Scooter 16
1.5 TVS IQUBE Electric Scooter 16
1.6 TVS XL 100 Moped 17
3.1 Comparative Balance Statement 43
4.1 Current Ratio 45
4.2 Quick Ratio 46
4.3 Cash Ratio 47
4.4 Debt-to-Equity Ratio 48
4.5 Shareholder’s Equity Ratio 49
4.6 Debt-to-Asset Ratio 50
4.7 Equity Ratio 51
4.8 Fixed Asset Ratio 52
4.9 Trend Analysis 57
4.10 Competitor Analysis of Shareholder’s Fund 74
4.11 Competitor Analysis of Non-Current 75
Liabilities
4.12 Competitor Analysis of Current Liabilities 76
4.13 Competitor Analysis of Non-Current Asset 77
4.14 Competitor Analysis of Current Asset 78

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 LIST OF SYMBOLS AND ABBREVIATIONS

GDP Gross Domestic Product

BS VI Bharat Stage VI
BSE Bombay Stock Exchange
NSE National Stock Exchange
TQC Total Quality Control
TQM Total Quality Management
PED Production Engineering Department
HRD Human Resource Department
R&D Research and Development
CL Current Liabilities
CA Current Assets
Cur. Current
Lia. Liabilities
Ass. Assets
S. E. Shareholder Equity
R&S Reserve and Surplus
Rs. Rupees
% Percentage
$ Dollar

x
 CHAPTER – I

1.1 INTRODUCTION OF FINANCE

L. J. Gitman quoted as, "Finance can be defined as the art and science of
managing money. Finance is concerned with the process, institutions, markets
and instruments involved in the transfer of money among and between
individuals, businesses and governments."

Schall & Hally said that "Finance is a body of facts, principles and theories
dealing with raising and using of money by individuals, businesses and
governments. "

1.1.1 Financial Statement Analysis

Financial statement analysis is a component of accounting and key to

understanding an organisation’s financial condition. External stakeholders use
it to understand the overall performance and business value of an organisation,
while internal constituents use it as a monitoring tool for managing finances.

Acting as a company’s financial health ‘report card’, it comprises the review

of three significant financial statements that every company must maintain:
the balance sheet, income statement and cash flow statement.

Balance sheet: It contains the summary of the assets, liabilities (debt) and
equity of a business at the end of an accounting period and gives a report of the
company’s financial worth in terms of book value.

Income statement: The detailed account of a company’s revenue earning (also

known as the profit and loss statement).

Cash flow statement: It provides data on how much cash or cash equivalent
circulates the company via various inflows and outflows, spanning ongoing
operational activities, external investment sources and cash from financing.

1
As such, a financial statement analysis provides a comprehensive and unbiased
overview of a company’s profitability, value, creditworthiness and financial
security.

1.1.2 Techniques of Financial Statement Analysis

 Ratio Analysis
 Net working Capital Analysis
 Fund Flow Analysis
 Cash Flow Analysis
 Comparative Statement Analysis
 Common Size Statement
 Trend Analysis

1.1.3 Ratio Analysis

Ratio analysis refers to the analysis of various pieces of financial information

in the financial statements of a business. It is used by external analysts to
determine various aspects of a business, such as its profitability, liquidity, and
solvency.

Analysts rely on current and past financial statements to obtain data and to
evaluate the financial performance of a company. They use the data to
determine, if a company’s financial health is on an upward or downward trend
and to draw comparisons to other competing firms.

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1.1.4 Importance of ratio Analysis

 It helps to understand efficiency of decisions.

 To simplify complex figures.
 To establish relationships.
 It is used in comparative analysis.
 To identify the problematic areas.
 To enable SWOT analysis.
 It ensures in comparing the performance of the company.

1.1.5 Trend Analysis

Trend analysis is defined as a statistical and analytical technique used to

evaluate and identify patterns, trends, or changes in data over time. It involves
the examination of historical data of industry to uncover insights into the
direction or tendencies of a particular phenomenon. Trend analysis is applied
in various fields to make decisions and predictions based on past performance
or behaviour from the financial statement.

1.1.6 Types of Trend Analysis

 Uptrend analysis
 Downtrend analysis
 Horizontal/sideways trend analysis

1.1.7 Comparative Statement Analysis

A statement that helps in the comparative study of the components of a

company’s balance sheet and income statement over a period of two or more
years, both in absolute and percentage form, is known as a Comparative
Statement.

3
When the comparative statements of two or more years of a firm are presented
and compared, it is known as inter-period comparison or intra-firm
comparison. However, when the comparative statements of two or more
firms are compared over several years, then it is known as an inter-firm
comparison.

1.1.8 Competitor Analysis from Comparative Statement

A competitor analysis, also referred to as a competitive analysis, is the process

of identifying competitors in your industry and researching their different
marketing strategies. You can use this information as a point of comparison to
identify your company’s strengths and weaknesses relative to each competitor.

1.1.9 Importance of Comparative Statement Analysis

 It indicates the strong points and weak points of the firm.
 It helps to indicate the trend in the market.
 To compare the firm’s performance with the average performance of
the industry.
 It helps in forecasting the financial health of the company.

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1.2 INDUSTRY PROFILE: AUTOMOTIVE INDUSTRY

The automotive industry is a wide range of companies and organizations

involved in the design, development, manufacturing, marketing, and selling of
motor vehicles. It is one of the world's most important economic sectors by
revenue. The automotive industry does not include industries dedicated to the
maintenance of automobiles following delivery to the end-user, such as
automobile repair shops and motor fuel filling stations.

The Automotive Industry of India has been recording tremendous growth and
has emerged as a major contributor to India’s GDP. This dynamic Industry
currently accounts for almost 7percent of India’s GDP and employing about
almost 19 million people.

The industry accounts for 7.1 per cent of the country's Gross Domestic Product
(GDP). The Two Wheelers segment with 81 per cent market share is the leader
of the Indian Automobile market owing to a growing middle class and a young
population. Moreover, the growing interest of the companies in exploring the
rural markets further aided the growth of the sector. The overall Passenger
Vehicle (PV) segment has 13 per cent market share.

The automotive industry in India is the fourth largest by production in the

world as per 2022 statistics. As of 2023, India is the 3rd largest automobile
market in the world in terms of sales. In 2022, India became the fourth largest
country in the world by the valuation of its automotive industry.

Many of the two-wheeler’s manufacturers were granted licenses in the early

1960s, well after the tariff commission was enabled.

In 2019, in line with international standards to reduce vehicular pollution, the

central government of India announced the introduction of BS-VI norms to
control air pollution, taking effect from 1 April 2020.

5
1.3 COMPANY PROFILE

Fig. No. 1.1-Company Logo

Table No.1.1 Company Information

Company type Public

Traded as BSE: 532343

NSE: TVSMOTOR

Industry Automotive

Founded 1978; 46 years ago,

Founder T. V. Sundram Iyengar

Headquarters Chennai, Tamil Nadu, India

Number of locations 4 two-wheeler and 1 three-wheeler

plants

6
Area served Worldwide

Key people Venu Srinivasan

(Chairman Emeritus)

Sudarshan Venu

(Managing Director)

Products Two-wheeler

Three-wheeler

Automobile parts

Services

Vehicle service

Revenue Increase ₹24,388 crore (US$3.1

billion) (2022)
Operating income Increase ₹1,064 crore (US$130
million) (2022)
Net income Increase ₹728 crore (US$91 million)
(2022)
Total assets Increase ₹27,072 crore (US$3.4
billion) (2022)
Total equity Increase ₹4,399 crore (US$550
million) (2022)
Number of employees 5,133 (2020)

7
Parent Sundaram - Clayton Limited (57.40%)

Subsidiaries Norton Motorcycle Company (100%)

Website www.tvsmotor.com

TVS MOTOR COMPANY

TVS Motor Company (commonly known as TVS) is an Indian multinational

motorcycle manufacturer headquartered in Chennai. It is the third-largest
motorcycle company in India in terms of revenue just after the Hero MotoCorp
and Honda Motorcycle and Scooter India (HMSI). The company has annual
sales of three million units and an annual production capacity of over four
million vehicles. TVS Motor Company is also the second largest two-wheeler
exporter in India with exports to over 60 countries.

TVS Motor Company is the flagship company of the TVS Group, being the
largest company of the group in terms of valuation and turnover. The logo for
TVS Motor Company features a red horse.

It is a reputed two and three-wheeler manufacturer globally, championing

progress through Sustainable Mobility with four state-of-the-art manufacturing
facilities in Hosur, Mysuru and Nalagarh in India and Karawang in Indonesia.
Rooted in 100-year legacy of Trust, Value, and Service, takes pride in TVS
Motor Company Limited making internationally aspirational products of the
highest quality through innovative and sustainable processes. They are the only
two-wheeler company to have received the prestigious Deming Prize. Products
lead in their respective categories in the J.D. Power IQS and APEAL surveys.
Have been ranked No. 1 Company in the J.D. Power Customer Service
Satisfaction Survey for consecutive four years. The group company Norton
Motorcycles, based in the United Kingdom, is one of the most emotive
8
motorcycle brands in the world. The subsidiaries in the personal e-mobility
space, Swiss E-Mobility Group (SEMG) and EGO Movement have a leading
position in the e-bike market in Switzerland. TVS Motor Company endeavours
to deliver the most superior customer experience across 80 countries in which
we operate.

History

T. V. Sundram Iyengar began with Madurai's first bus service in 1911 and
founded TVS, a company in the transportation business with a large fleet of
trucks and buses under the name of Southern Roadways.

Sundaram Clayton was founded in 1962 in collaboration with Clayton

Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts,
compressors and various other automotive parts. The company set up a plant at
Hosur in 1976, to manufacture mopeds as part of their new division. In 1980,
TVS 50, India's first two-seater moped rolled out of the factory at Hosur in
Tamil Nadu, India. A technical collaboration with the Japanese auto giant
Suzuki Ltd. resulted in the joint venture between Sundaram Clayton Ltd and
Suzuki Motor Corporation, in 1987. Commercial production of motorcycles
began in 1989.

1.3.1 Company Vision

To transform the quality of life of people across the world by providing mobility
solutions that are exciting, responsible, sustainable and safe.

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1.3.2 Company Mission

To be one of the leading companies globally in our chosen business segments,

providing the most compelling mobility solutions through:

1. An innovation driven culture thriving on relentless reflection and

teamwork.
2. Focus on speed and agility to seize opportunity in a Volatile Uncertain
Complicated Ambiguous (VUCA) world.
3. Scalable technology platforms & solutions with highest quality to delight
customers.
4. Commitment towards a sustainable future for societies and the
environment.

1.3.3 Company Quality Policy

TVS Motor Company Limited is committed to achieving total customer

satisfaction through excellence in TQC.

We will continuously strive to provide the customer the best value for money
by supplying quality product at the right time and at the right price.

To ensure that pace meets its responsibilities and obligations to their customers,
their people, their partners, their shareholders. TVS Motor is committed to
achieving a self-reviewing organization in perpetuity by adopting TQM as a
way of life. TVS Motor believes in the importance of the process. People and
projects will be evaluated both by their end results and the process adopted.

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1.3.4 Milestones

Table No. 1.2 Milestones

Years Milestones
1980 Great milestone in Indian automobile history. Country's first 2-
seater 50cc moped TVS 50 launched.
1984 First mover. TVS becomes the first Indian Company to introduce
100cc Indo-Japanese motorcycles.
1994 Pioneer of mobility for women. Launched India's first
indigenous Scooterette (sub-100 cc variomatic scooter), TVS
Scooty.
1996- Bringing in green technology before it became a norm.
1997 Introduced India's first catalytic converter enabled motorcycle,
the 110cc Shogun.
Great ride. Greater speed. Launched India's first 5-speed
motorcycle, the Shaolin.
2000- Hiking speed limits. Launched TVS Fiero, India’s first 150 cc, 4
2001 stroke motorcycle.
Indigenous technology. Launched TVS Victor, 4-stroke 110 cc
motorcycle India's first fully indigenously designed and
manufactured motorcycle.
2002 TVS becomes world's first two-wheeler company to win world's
most prestigious recognition in Total Quality Management- the
Deming Award 2002.
TVS wins Technology Award from Ministry of Science,
Government of India for successful commercialization of
indigenous technology.

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2004 Setting benchmarks in mileage. Launched TVS Centra, a world-
class 4-stroke 100cc motorcycle with the revolutionary VT-i
Engine for best-in-class mileage.
All terrain performance. Launched TVS Star, a 100 cc
motorcycle ideal for rough terrain.
TVS wins TPM Excellence Award from Japan Institute of Plant
Maintenance (JIPM).
TVS wins Outstanding Design Excellence Award for TVS
Scooty Pep.
2005- Spreading its roots. TVS launches its Indonesian plant.
2006 Making a style statement. Launched TVS Apache, which set the
youth's imagination on fire. Apache went on to win 6 prestigious
awards.
2007 Never before in automobile history. TVS Motor Company rolls
out seven new products.
Yet another first. TVS launches its Himachal Pradesh Plant at
Nalagarh.
2008 Apache Refresh with rear disc brakes launched in Dec-2008
TVS Motor Company bags two coveted IT awards SAP ACE
2008 and 2008 Symantec South Asia Visionary Award
Scooty Pep + launched with balancing wheels in Aug-2008
Scooty Wimbledon collection launched in Jun-2008
Apache RTR Fi launched in Jun-2008
TVS Motor Company launches the revolutionary 125cc FLAME
in Mar-2008
TVS makes its foray into the three-wheeler market with TVS
KING in Mar-2008

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2009- TVS unveils the Apache RTR 180 ABS
2010 Jive: The Auto - Clutch bike launched
Wego: First scooter with Body Balance Technology
2012- TVS is India's most trusted brand in the 2-wheeler category.
2013 Source: Economic Times Most Trusted Brands Survey 2012
TVS Motor Company launched Its premium executive 125cc
motorcycle, TVS Phoenix
TVS Jupiter launched on Sep 2013
2014- TVS launches its award-winning scooter, the TVS Scooty Zest
2015 110 with best-in-class features.
Launched All New Phoenix 125
J.D Power Asia Pacific India Automotive Awards
The most Appealing Executive Scooter - TVS Wego
The most Appealing Premium Motorcycle - TVS Apache
The most Appealing Economy Motorcycle - TVS Sport
2016 After decades of conquering the track, 2016 saw the launch of
the new TVS Apache RTR 200 4V. The most powerful Apache
yet.

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1.3.5 Organizational Structure

Fig. No. 1.2 Organizational Structure

14
1.3.6 Products and Services

Products

Motorcycles

Fig. No. 1.3 TVS Raider Motor Cycle

 TVS Apache
 RTR 310
 RR 310
 RTR 200 4V
 RTR 180
 RTR 160 4V
 RTR 160
 RP 165
 Ronin
 Raider
 Radeon
 Sport
 Star City+

15
Scooters

 Jupiter 110
 Jupiter 125
 Ntorq
 Zest 110
 Scooty Pep+

Fig. No. 1.4 TVS Jupiter 125 Scooter

Electric Scooters

 iQube
 TVS X

Fig. No. 1.5 TVS IQUBE Electric Scooter

Three wheelers

 King Deluxe
 King Duramax

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  King Duramax 100
 King Kargo

Mopeds

 XL 100

Fig. No. 1.6 TVS XL 100 Moped

Services

 Service workshops open all 7 days.

 Service pick-up and drop facility.
 TVS genuine parts & oil.
 Live service status update.
 5 years standard warranty.
 24*7 Assistance.
 4500+ Authorized service centre.
 10000+ certified technicians.
 3 Decades of customer service expertise.
 Accidental claim and cashless insurance.
 Annual maintenance contract with warranty.

17
Srinivasan Services Trust

We are the social arm of TVS Motor Company and Sundaram Clayton. We
work with communities and governments to empower India’s rural poor
through awareness, skills and training programs.

1.3.7 Departments and Their Functions

 Sales & Marketing Department

 Finance Department
 PED Department
 Operation Department
 Purchase Department
 HRD Department
 R&D Department
 QAD Department
 IT Department
 Business Planning
 Sales & Marketing Department

The role of the automotive marketing is to position a brand or a particular

vehicle as a desirable choice in a competitive market and to establish a strong
presence in the minds of potential buyers. It helps to increase the sales
percentage of the brand in the market and to position the stable brand image in
the customer mind.

Functions

 To improve customer satisfaction

 To maintain customer relation management
 To build TVS brand image among customers
 To improve channel management

18
  Finance Department

Commitment to produce a quality accounting system which will ensure

safeguarding of the company finance and availability of timely and accurate
information to the satisfaction of the internal and external customers achieving
business result by effective cost management through total employee
involvement and continuous improvement of processes.

 PED Department

This department is responsible for planning, designing, and optimizing

manufacturing processes in the automotive sector. It focuses on efficient
production methods, quality control, and cost-effectiveness. Engineers in this
department work on improving production lines, assembly processes, and
automation systems.

 HRD Department

Human resource is the real asset of every organization. Human resource

department in TVS is known as personnel service department. Personal service
department focuses on and influences the people who work in the organization.
TVS has a good personnel department which always looks forward to
efficiency, welfare and security of the employees. Responsibility of personnel
department is to ensure maximum utilization of human resources.

Functions

 Framing personnel policies

 Implementing programs
 Selection of personnel
 Scientific placement
 Induction and orientation
 Establishing good industrial relations
19
  Effective communication
 Motivating the personnel
 IT Department

Business have used information technology for many years to automotive task-
from automated bookkeeping to automated manufacturing. More recently
business have used computer-based information system to support the analysis,
interpretation and presentation of data in business decision making. E-business
and E-commerce refers to all business transactions depend on information
technology. Today information technology is an inseparable part of every
organization. So, information system plays a vital role in TVS. This is used in
all the department in the organization like HR MANAGEMENT, FINANCIAL
MANAGEMENT AND MANUFACTURING MANAGEMENT etc. The
organisation uses both AXAPTA & UNIX system for controlling and
coordinating for all system in the organization.

 R&D Department

The company’s strong R&D team is continuously working towards the design
and development to existing new product for our customers. Aided by modern
CAD/CAE resources and state-of-the-art facilities for engine and vehicle
design, department and testing, noise, vibration and harshness (NVH)
measurement, R&D constantly develops new and innovation features. R&D
team is also working on the department of fuel-efficient and environmentally
friendly technologies. The company also collaborates with leading research
laboratories and educational institutions for developing future technologies.
The R&D team has so far published 86 technical papers in national and
international conference.

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  Operation Department

Supplying products of required quality and quantity on time, through the most
efficient use of resources and by promoting continuous improvement. Some of
its functions are material procurement, production, quality control, engineering,
plant maintenance, painting, machining, plating, assembling, spare parts
servicing, etc.

 QAD Department

In the automotive industry, the Quality Assurance and Development (QAD)

department plays a crucial role in ensuring product quality, safety, and
compliance.

QA professionals in the automotive industry focus on maintaining high

standards throughout the production process.

Their responsibilities include:

 Inspecting
 Testing
 Auditing
 Implementing
 Collaborating
 Business Planning Department

The Business Planning Department at TVS Motor Company plays a crucial role
in shaping the company’s strategic direction and ensuring its long-term success.
Responsibilities of this department is to include corporate planning for the
company.

The department develops a strategic plan by studying technological

advancements, financial opportunities, and other relevant factors.

21
1.3.8 Achievements

 Motoring Awards 2022

 Commuter of the year - TVS Raider 125
 Motorcycle of the year - TVS Raider 125
 Indian Motorcycle of The Year 2022 - TVS Raider
 TVS Raider is awarded “Bike of the year” at coveted 2021 Jagran Hi-
Tech awards.
 Bike Awards – 2019
 Indian Motorcycle of The Year – 2017
 TVS Motor has been awarded Highest in Customer Satisfaction by J.D.
Power Asia Pacific Awards for 2018.
 TVS Scooty Zest 110 is awarded the Most Appealing Executive Scooter
by J.D. Power Asia Pacific Awards for 2016.
 TVS Motor Company was named the Two-Wheeler Manufacturer of the
Year by NDTV Car and Bike Awards 2015.
 TVS Apache RTR180 is the Most Appealing Premium Motorcycle as
awarded by J.D. Power Asia Pacific Awards for 2018.
 TVS Star City + is awarded the highest ranked Economy Motorcycle by
J.D. Power Asia Pacific Awards for 2018.
 TVS Star City + is awarded the Most Appealing Economy Motorcycle
by J.D. Power Asia Pacific Awards for 2018.
 TVS Jupiter is awarded the Most Appealing Executive Scooter by J.D.
Power Asia Pacific Awards for 2018.
 TVS Motor has been awarded Highest in Customer Satisfaction by J.D.
Power Asia Pacific Awards for 2016.
 TVS Apache RTR180 is the Most Appealing Premium Motorcycle as
awarded by J.D. Power Asia Pacific Awards, 2016.
 Motor beam - Bike Manufacturer of The Year – 2018.

22
  NDTV Car & Bike 2018.

Awards

 Autocar Awards 2018 - Readers' Choice (Brand - Apache RR310, TVS

Apache RTR 160 4V, TVS Radeon)
 CNBC TV18 – Viewers’ Choice Motorcycle of The Year (Brand -
Apache RTR200 4V)
 The Deming Prize:
TVS Motor Company is the only two-wheeler company in the world to
be awarded the world's most prestigious and coveted recognition in
TQM.
 Motoroctane 2W Awards - 2018 (Best Affordable Enthusiast Bike):
Brand - Apache RR310
 Motoring Awards - 2017 (Premium Motorcycle Of The Year): Brand -
TVS Apache RTR 200 4V
 Motor Vikatan - 2019 (Commuter Motorcycle Of The Year): Brand -
TVS Radeon
 Progressive Manufacturer 100 Award:
 TVS wins coveted 2009 Progressive Manufacturer 100 Award for end-
to-end automation of the entire business process of its lubricant brand,
TVS TRU4

TVS Leadership

Star of Asia Award to Mr. Venu Srinivasan CMD TVS Motor Company by
Business Week International. He was also honoured with Doctorate in
Science by University of Warwick, United Kingdom.

Mr. Venu Srinivasan was conferred with the prestigious JRD Tata Corporate
Leadership Award for the year 2004, by the All-India Management
Association (AIMA)
23
1.3.9 Competitors

 Bajaj Auto
 Hero MotoCorp
 Honda
 Suzuki
 Yamaha
 Royal Enfield
 Intense Competition
 Environmental Regulations
 Improvement in Public Transport

24
1.4 NEED FOR THE STUDY
 To study the trend analysis through financial statement of TVS Motor
Ltd.
 To evaluate the company stacks up against peers and their competitive
strategies.

25
1.5 SCOPE OF THE STUDY

 This study is based on trend analysis which shows the ups and downs of
financial health of the company.
 This study is based on the financial statements of the past five years data
(2019-2023) and to calculate the various financial tools to know the
financial performance of the company.

26
1.6 OBJECTIVES OF THE STUDY

 To study the trend analysis through financial statement of TVS Motor

Ltd.
 To analyse the trends which provides insights into future possibilities
on past records to make strategic planning.

27
1.7 LIMITATIONS OF THE STUDY
 Financial statement analysis takes a lot of time and work, especially
when it involves several companies long-term research that span several
years.
 Financial analysis ignores non-monetary aspects and is only dependent
on monetary data.

28
 CHAPTER – II
2.1 REVIEW OF LITERATURE
2.1.1 Imaeka I. Charles & Imoh C. Uford, Vol. 11, No. 2, 2023 ISSN 2056-
6018 European Journal of Business, Economics and Accountancy,
“Comparative Analysis And Evaluation of Business And Financial
Performance Of AMAZON.COM: A Three-Year Period Critical Review
Of Exceptional Success”. The reason for the choice of Amazon.Com was
justified by showing how it performed exceptionally well through leaping
increase in revenue, profit margins and quick ratio. The Financial Analysis to
evaluate it profitability, liquidity, solvency and efficiency ratios. The
performance was then compared to Walmart. Amazon.com showed a better
overall performance than Walmart and indeed proved the company’s ability to
take advantage of its strengths and opportunities to perform excellently while
hedging against threats.

2.1.2 Mr. P. Kanagaraj, Mr. C. Harsh, Volume: 8 |Issue: 4 | April2023,

ISSN: 2455-7838, EPRA International Journal of Research and
Development (IJRD), A STUDY ON FINANCIAL PERFORMANCE OF
COAL INDIA LIMITED. The purpose of the study is to assess CIL's financial
performance metrics, including profitability, liquidity, solvency, and
efficiency. Utilising a variety of financial measures and methods, data was
studied from the annual reports of CIL. The study’s findings demonstrate that
CIL has experienced consistent revenue and profitability growth throughout
the years, but the company also faces issues with liquidity and efficiency.

2.1.3 Bhadrappa Haralayya, Vol.5, Issue 9, Mar 2022, IRE Journals,

“Impact of Ratio Analysis on Financial Performance in Royal Enfield”.
The tools used for the study as ratio analysis, comparative statement and ratio
analysis were used to find out the efficiency and effectiveness of the company.

29
It reveals the strength and weakness of the firm. The corporation keeps up with
unnecessary liquidity to make a revenue. The undertaking retains up with the
enormous design and 2019-20 is a useful a year for the business undertaking.

2.1.4 Dr. W. Saranya, Vol.10, Issue 5, 2021, Infokara Research, Financial

Statement Analysis of Indigo and Air Asia Ltd. Secondary data is gathered
from the companies' annual reports. The current study examines Indigo and Air
Asia ltd.’s financial strengths and weaknesses. The data was collected over a
five-year period, from 2015 to 2019, and then compiled into tables and analysed
using Ratio analysis. The study reveals that both companies' financial analyses
are satisfactory.

2.1.5 K. Karthikeyan, Volume: 9, Issue: 3, 2021, E-ISSN: 2582-6190,

ComFin Research, A Study on Financial Statement Analysis of Primary
Agricultural Cooperative Credit Society in Paiyanoor Branch at
Chengalpattu District. The study based last five year annual report of 2014 to
2019 form PACCS. The Accounting ratios like Current ratio, Quick ratio, Debit
ration, Debit equity ratio, Net assets turnover ratio, Gross profit ratio, Net profit
ratio, Return on equity ratio, Return on equity ratio, Solvency ratio used
analysis the performance of financial statement analysis of Primary
Agricultural Cooperative Credit Society. The study revealed that Debit Ratio
highest value in the year 2014-15 is 0.830, Net Profit Ratio highest value in the
year 2015-16 is 1.015, Current Ratio highest value in the year 2018-19 is 2.052,
Quick Ratio highest value in the year 2018-19 is 2.813, Gross Profit Ratio
highest value in the year 2018-19 is 0.134. It shows that the PACCS gradually
increase financial performance in last five years from 2014 to 2019.

2.1.6 Mr. P. Kanagaraj, Mr. Gouwsigan V (2021), This research paper aims
to examine the financial performance of Indian Oil Corporation Limited
over a period of six years (2014-2020) using ratio analysis of liquidity,

30
solvency, profitability, and efficiency. The study used secondary data collected
from the company's website and analysed it using ratio analysis of the balance
sheet. The findings were discussed in detail and suggestions were made for
corrective actions to maintain good solvency and meet short-term and long-
term obligations.

2.1.7 Wiwiek Mardawiyah Daryanto, Margaret Churchill, Naufal

Suryaputra, Vol. 25, Issue 1 (Dec) ISSN 2289-1560 2021, South East Asia
Journal of Contemporary Business, Economics and Law, Comparative
Study: Measuring Financial Health Performance of Food and Beverages
Companies Before and During the Pandemic COVID -19 for the Period
of 2016 – 2020.The result of four significant financial ratios, profitability,
liquidity, activity, and solvency ratio, will be validated by weighing the score
from the decree to understand the healthy performance of PT. Mayora Indah
Tbk, and PT. Indofood Sukses Makmur Tbk with their financial report from
2016 -2020. Those companies are chosen based on their reputation in the FnB
industry; the financial report and calculation are collected based on their
financial information. As the health assessment has done, both companies are
achieved a healthy level at the average of AAA and AA per the SOE's Decree.

2.1.8 P. Siva Reddy & Yathati Keerthana, Volume 10, Issue 3 – 2020, ISSN:
1548-774, Journal of Information and Computational Science, Trend
Analysis Of NTTPS: The Exposure. The study adopted the desk research
method using a rehashed six -year financial statement data of Dr. NTPS. The
tables are employed and evaluated by using simple MS Excel commands to
perform periodic relational analysis by comparing the probabilities of the
occurrence of a percentage of an item in a group for the current period with
similar probabilities of the same item and group for the base period.

31
2.1.9 Ms Jyoti Jain, Dr. Ruchi Jain (2020), The study analysed the effect of
solvency, efficiency, and liquidity on profitability of Coal India Ltd. from
2010 to 2019. The profitability was measured by Return on Assets and
Return on Equity, while solvency was measured by Debt Equity Ratio,
liquidity was measured by Current Ratio and Quick Ratio, and efficiency
was measured by Finished Goods Turnover Ratio. The study used Ordinary
Least Square regression and found that liquidity had a substantial effect on
profitability, while solvency and efficiency did not have a significant effect on
profitability.

2.1.10 Tuti Maisharoh, Setyo Riyanto, Vol. 1 No. 2, July 2020 ISSN: 2715-
677X, Journal of Contemporary Information Technology, Management,
and Accounting, Financial Statements Analysis In Measuring Financial
Performance of PT. Mayora Indah Tbk, Period 2014-2018. Financial
performance can be measured by calculating financial ratios. Information data
used for analyzing financial statements is obtained from Indonesia Stock
Exchange (IDX) website transparently. Financial ratios are the most
appropriate method to measure financial performance using Liquidity,
Solvency, Activity, and Profitability data. These four financial ratios can
produce numbers, from these results it thus can be assessed whether the
company experiencing good or bad financial condition.

2.1.11 REBACCAL.A, CHANDRASEKARAN. M,

BHUVANESHWARI.A, Vol. 8 No. 1.5, 2019, Scholar: National School of
Leadership, A Study on Trend Analysis. To evaluate organizations financial
position and to identify the areas where there is a scope of improving. This
helps to understand and respond to dynamics of situations. This research is
widely used in stock market research, analysis of financial statement, and other
socio-science related researches. Trends Analysis is the most widely used and

32
powerful technique of financial analysis. It provides the proper financial
position for every year. It will further improve the company financial position.

2.1.12 PT Mayora Indah Tbk (2019), research is to analyse its financial

statements in order to measure financial performance over the period of 2014
to 2018. Financial performance can be measured by calculating financial ratios.
Information data used for analysing financial statements is obtained from
Indonesia Stock Exchange (IDX) website transparently.

2.1.13 Endri 2019, Debt to Equity Ratio (DER): Large debts become
unprofitable and heavy for the company when calculated by the ratio of debt to
equity.

2.1.14 Dr. R Jayanthi, Vol. 3; Issue 3; September 2018, ISSN: 2455-9040,

National Journal of Multidisciplinary Research and Development, A
comparative study on the financial performance analysis of TTK Prestige
Ltd and Hawkins Cookers Ltd in India. Financial analysis is an aspect of the
overall business finance function that involves examining historical data to gain
information about the current and future financial health of a company. There
are four main categories of ratios: liquidity ratios, profitability ratios, activity
ratios and leverage ratios. These are typically analysed over time and across
competitors in an industry. This paper is to enlighten the financial performance
analysis of TTK Prestige Ltd, Bangalore and Hawkins Cookers Limited,
Mumbai. The main purpose of this paper is to study and analyse the financial
performance analysis with reference to Kitchen Appliances in India.

2.1.15 B S R Murthy, M. Kethan, M Manjunatha, Volume 4 Issue 4 –

APRIL 2018, IJSART, A Study on Comparative Financial Statement of
Hatsun Agro Product Ltd (With Reference Last Five Financial Year 2013
To 2017). The last 5 years annual report of the Selected Company Financial
Statement Analysis is compiling and tabulated for the purpose of study. We are

33
using various analysis tools and techniques; there are Ratio Analysis,
Comparative studies of Balance sheet and Income Statement with Percentage.

2.1.16 Renu Hooda & Kuldip Singh Chhikara, VOLUME 5 I ISSUE 4 I

OCT. – DEC. 2018, e ISSN 2348 –1269, IJRAR- International Journal of
Research and Analytical Reviews, Financial Performance Analysis of
Indian Oil Corporation Limited. Company’s liquidity position in term of
current ratio and quick ratio was found to be less than industry and the same
were consistently falling while leverage position indicates that company
finance its projects from equity fund rather than from borrowed funds.
Company’s fixed assets turnover ratio also showed the downward trend which
is a matter of concern and profitability of company in terms of ROA, ROE and
ROC showed wide fluctuation over the period of the study owning the India’s
dependence on import of crude oil to fulfil the requirement of growing and
expanding economy and making its oil marketing companies vulnerable to
global events.

2.1.17 Raghu. G. Anand, Vol. 7, Issue 4, Oct 2017, 1-8, (IJAFMR), (A Study
on the Financial Performance Using Comparative Analysis and Ratio
Analysis as a Tool with Reference to Maruti Suzuki India Limited. The
study is limited to assessing the performance of the company (Maruti Suzuki
India Limited) using past data, collected from secondary sources, and has been
thoroughly analysed using comparative statement analysis and a few ratios. The
research of the financial of Maruti Suzuki India Limited in 2016-17, thus show
that the company has moved up the ladder towards increased sales and
customer satisfaction and needs to maintain the same and work towards further
growth of the company.

2.1.18 AG Anupa Jayawardhana, Vol.8, No.11, 2016, European Journal of

Business and Management, Financial Performance Analysis of Adidas. The

34
financial statement of Adidas has been selected and analysed to indicate the
balance sheet, income statement and the cash flow statement. Financial
performance has been studied using horizontal analysis, vertical analysis, trend
analysis and mainly ratio analysis to suggest improvements to increase finance
flow, improve dividend and reduce liabilities. Main analysis is based on 2014
and 2013 financial years which are ending on 31st of December in every year.
The latest performance being compared with company’s statements over the
last five years starting 2010 for showing trends. Finally, recommendations and
suggestions have been made to ensure the revenue of the company and reduce
the liabilities while improving the stability of the company.

2.1.19 Wild et al. (2014) cited in Baraja and Yosya (2019, p.5), defined
financial statement analysis as the review of financial statements to determine
the relationships, tendencies, or trends affecting the financial position,
performance, and growth of the company. Key among a company’s financial
statement to be analysed includes the Balance sheet, Income statement, Cash
flow statement and Annual report (Ukpong, 2012).

2.1.20 Engle 2010, Debt to Assets Ratio (DAR): The value of the company's
total assets is used to measure the amount of debt that is held.xa

2.1.21 (Bragg 2007), Cash Ratio: Examine the proportion of liabilities that
can be achieved by the numerator in the short term only use cash.

35
 CHAPTER - III

3.1 RESEARCH METHODOLOGY

The practical "how" of a research study is referred to as research technique. To

be more exact, it includes the methodical ways in which a researcher plans a
study that ensure accurate and reliable outcomes that answer the goals,
objectives, and research questions. In particular, how the researcher arrived at
the following decision:

 Which kind of data, such as qualitative or quantitative data, should be

gathered
 Who ought to provide it to (i.e., the sample plan)
 How to gather it, or the methodology for gathering data
 How to analyse it, or the techniques for analysing data

3.1.1 Research Design

One of the research designs in research methodology is the analytical study.

These designs are essential for comprehending correlations among many
variables, providing solutions to why-and-how-questions, and validating
hypotheses.

Analytical study designs enable us to investigate connections, identify trends,

and support evidence-based decision-making across a range of academic areas.

3.1.2 Data Collection

Secondary Data: The method of applying data that has been previously
obtained by another individual for a purpose irrelevant to the original plan is
known as secondary data collecting. Scholars scrutinize and understand this
data in order to obtain pertinent information.

 Annual Reports

31
  Internal Records
 Websites

3.1.3 Financial Tools Used

I. Ratio Analysis
II. Trend Analysis
III. Comparative Statement Analysis
I. Ratio Analysis
A. Ratio

A ratio is a measure of the proportionality of two or more numbers, indicating

how often one quantity contains another.

B. Ratio Analysis

The ratio analysis was presented by Euclid in his book 5, ‘Elements’ in about
300 B.C. At that time, ratio was not used as financial tool. A financial ratio is a
measure of the relative magnitude of two selected numerical values taken from
a company's financial statements.

C. Steps in Ratio Analysis

 Selection of pertinent data
 Comparison of the determined ratios
 Accounting and interpretation
D. Types of Ratios
1) Liquidity Ratios
2) Solvency Ratios
3) Profitability Ratios
1) Liquidity Ratios

A financial ratio called a liquidity ratio is used to evaluate a company's capacity

to settle its short-term debt with its current assets alone. The speed at which a

32
business can convert its assets and use them to pay off outstanding debts is
measured by its liquidity ratio. The easier it is to pay off debts and stay out of
default, the greater the ratio.

Types Of Liquidity Ratio

 Current Ratio

Current ratio evaluates a company's ability to use its entire current assets, such
as cash, accounts receivable, and inventories, to pay off its current liabilities,
or those that are due within a year. So, higher ratio the company has means
more assets than liabilities.

Current Ratio = Current Assets ÷ Current Liabilities

 Quick Ratio

Quick ratio is like the current ratio, but with inventories subtracted from current
assets. It emphasizes the assets that are most liquid.

Quick Ratio = (Current Asset - Current Inventories) ÷ Current Liabilities

 Cash Ratio

Cash ratio determines whether a business can meet its short-term obligations
with just cash and cash equivalents.

Cash Ratio = Cash + Cash Equivalent ÷ Current Liabilities

2) Solvency Ratio

An important financial indicator that evaluates a company's capacity to pay off

its long-term debt is the solvency ratio. It functions as a gauge of the business's

33
financial stability, especially with regard to its ability to manage long-term
obligations.

 Debt-To-Equity Ratio

This ratio compares a company’s total debt to its equity. It reflects the balance
between debt and equity financing.

Debt-To-Equity Ratio = Total Liabilities ÷ Total Shareholder Equity

 Debt-To-Asset Ratio

This ratio compares a firm’s total debt to its total assets. It indicates the
proportion of a company’s assets financed by debt.

Debt-To-Asset = Total Debt ÷ Total Asset

 Equity Ratio

The equity ratio assesses the proportion of a company’s assets financed by

equity (shareholders’ equity).

Equity Ratio = Total Equity ÷ Total Asset

 Fixed Asset Ratio

The ratio, which is expressed as a percentage, shows how much of a company's

total assets are fixed assets. It offers a quantitative description of the fixed asset
investment in relation to other asset classes.

Fixed Asset Ratio = Total Fixed Assets ÷ Total Assets

34
Types of Fixed Assets Ratio

 Debt to Fixed Assets Ratio

 Equity to Fixed Assets Ratio
 Working Capital to Fixed Assets Ratio
 Return on Fixed Assets Ratio

 Shareholder Equity Ratio

The percentage of a company's assets that have been financed by owner equity
rather than debt is indicated by the shareholder equity ratio. It displays the
percentage of shareholders' money that has been used to finance the business's
assets and shows what the owners will receive if the business is liquidated.
Shareholders equity also known as proprietary ratio.

Shareholder Equity Ratio = Shareholder’s Equity ÷ Total Assets

II. Trend Analysis

Trend analysis is a valuable tool used for financial analysis. It aids in our
comprehension of how particular financial metrics evolve over time. a method
that is frequently used in many different fields that entails gathering data and
identifying patterns Trend analysis is a useful tool for comprehending patterns,
making wise decisions, and managing uncertainties in addition to being able to
forecast future events. The goal is to calculate and analyse

 Change in Amount (Absolute Trend Analysis)

 Percentage Change (Relative Trend Analysis)

35
Percentage Change (Relative Trend Analysis)

Trend analysis helps in informing users discern percentage changes in selected

data over time. For instance, it allows us to observe whether a firm’s net profit
is increasing, decreasing, or stable, as well as identify any fluctuations over the
years. Instead of comparing just two consecutive years, trend analysis considers
changes over several years, providing a broader perspective.

Percentage Change = (Current Year Amount – Base Year Amount) ÷ Base

Year Amount

Index Numbers

Index Number also called as Trend Percentage is a form of Horizontal analysis

that reveals a change or trend in a company’s financial statement accounts over
a period of time. When examining trends over multiple years, index numbers
are used instead of percentage changes. These index numbers represent the
value of an item relative to a chosen base year (which is set to 100%).

Index Numbers = Index Year ÷ Base Year × 100

III. Comparative Statement Analysis

A comparative statement is a financial statement that aids in the comparison

of income statement and balance sheet components for a company across a
minimum of two periods, expressed in both percentage and absolute terms.
It allows one to assess a company's performance in relation to its rivals by
combining historical data with the most recent financial statements.

The methodical process of assessing and contrasting two or more entities,

variables, or choices to find patterns, similarities, and differences is known

36
 as comparative analysis. To make wise selections, it entails evaluating the
advantages, disadvantages, opportunities, and hazards connected to each
entity or choice.

Specimen of Comparative Balance sheet statement for the year ended as of

Mar 2019 to 2020

Table No. 3.1 Comparative balance Sheet Statement

Particulars 2019 (Rs.) 2020 (Rs.) Change in Change in

Absolute Percentage
Value
Assets
Non-current Assets
a. Fixed Assets XXX XXX XXX XXX
b. Investment XXX XXX XXX XXX
Current Assets
a. Trade XXX XXX XXX XXX
Receivables
b. Inventory XXX XXX XXX XXX
c. Cash and Bank XXX XXX XXX XXX
Total XXX XXX XXX XXX
Equity and Liabilities
Shareholder’s Fund
a. Share Capital XXX XXX XXX XXX
b. Reserve and XXX XXX XXX XXX
Surpl
Non- current Lia.
a. Long term XXX XXX XXX XXX
Borrowings
Current Liabilities

37
 a. Trade XXX XXX XXX XXX
Receivables
b. Inventory XXX XXX XXX XXX
c. Cash & Bank XXX XXX XXX XXX
Total XXX XXX XXX XXX

38
 CHAPTER - IV

4.1Data Analysis and Interpretation

4.1.1Ratio Analysis

A. Current Ratio

Table No. 4.1 Calculation of Current Ratio (Rs. In Crores)

PARAMETERS Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

Cur. Ass. 8331.67 9739.00 10536.84 12848.08 17007.23
Cur. Lia. 8184.79 10025.24 10908.71 13851.72 19218.70
Cur. Ratio 1.017 0.971 0.965 0.927 0.884
Working Note

Current Ratio = Current Assets ÷ Current Liabilities

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
8331.67/8184. 9739.00/10025. 10536.84/10908. 12848.0 17007.2
79 =1.017 24 71 8/ 3/
=0.971 =0.965 13851.7 19218.7
2 0
=0.927 =0.884

Fig. No. 4.1 Current Ratio

45
Inference: From the above table the current ratio was high in the year Mar 19
by 1.0% and low in the year Mar 23 by 0.8%. From the year Mar 19 it gradually
tends to be decreased.

B. Quick Ratio

Table No. 4.2 Calculation of Quick Ratio (Rs. In Crores)

PARAMETERS Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

Quick Ass. 7040.1 8550.53 9169.41 11205.72 15085.72

Cur. Lia. 8184.79 10,025.24 10,908.71 13,851.72 19,218.70
Quick Ratio 0.860 0.852 0.840 0.808 0.784
Working Note

Quick Ratio = Current Assets-Current Inventory ÷ Current Liabilities

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
8331.67- 9,739.00- 10,536.84- 12,848.08- 17,007.23-
1291.57/ 1,188.47/ 1,367.43/ 1,642.36/ 1,921.51/
8184.79 10,025.24 10,908.71 13,851.72 19,218.70
= = = = =
0.860144243 0.85290028 0.8405586 0.808976791 0.784950075

Fig. No. 4.2 Quick Ratio

46
 Inference: From the above table that shows Quick ratio was high in the year
Mar 19 by 0.86% and low in the year Mar 23 by 0.78%, where from the year
Mar 19 it gradually tends to decline.

C. Cash Ratio

Table No. 4.3 Calculation of Cash Ratio (Rs. In Crores)

PARAMETERS Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

Cash & Cash 206.31 1107.57 1656.85 1535.61 1879.11
Equivalent
Cur. Lia. 16696.49 19358.82 21992.69 27072.08 35232.91
Cash Ratio 0.012 0.057 0.075 0.056 0.053
Working Note

Cash Ratio = Cash & Cash Equivalents ÷ Current Liabilities

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
206.31/16696.49 1107.57/19358.82 1656.85/ 1535.61/ 1879.11/
=0.012 =0.057 21992.69 27072.08 35232.91
=0.075 =0.056 =0.053

Fig. No. 4.3 Cash Ratio

47
Inference: From the above table the cash ratio was high in the year Mar 21 by
0.075% and low in the Mar 19 by 0.012%. Though in upcoming year it raised
but after the year Mar 21 it started decline gradually.

D. Debt-To-Equity Ratio

Table No. 4.4 Calculation of Debt-to-Equity Ratio (Rs. In crores)

PARAMETERS Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

Total Lia. 8162.97 9001.93 9349.51 15297.28 21626.23
Total 3170.17 3,282.10 3,826.61 4,399.45 5,505.00
Shareholder’s
Equity
Debt-To-Equity 2.574 2.742 2.443 3.477 3.928
Ratio
Working Note

Debt-To-Equity Ratio = Total Debt ÷ Total Shareholder’s Equity

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
8162.97/3170.1 9001.93/3,282.1 9349.51/3,826.6 15297.28 21626.23
7 0 1 / /
=2.574 =2.742 =2.443 4,399.45 5,505.00
=3.477 =3.928

48
 Fig. No. 4.4 Debt-to-Equity Ratio

Inference: The above table shows that the Debt-to-equity ratio was high in the
year Mar 23 by 3.9% and low in the year Mar 21 by 2.4% and it starts raising
in the upcoming years.

E. Shareholder’s Equity Ratio

Table No. 4.5 Calculation of Shareholder' Equity Ratio ( Rs. In

Crores)

PARAMETERS Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

Total S.E. 3170.17 3,282.10 3,826.61 4,399.45 5,505.00

Total Ass. 16696.49 19,358.82 21,992.69 27,072.08 35,232.91

SE. Ratio 0.189 0.169 0.173 0.162 0.156

Working Note

Shareholder’s Equity Ratio = Total Shareholder Fund ÷ Total Assets

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
3170.17/16696.49 3,282.10/ 3,826.61/ 4,399.45/ 5,505.00/
=0.189 19,358.82 21,992.69 27,072.08 35,232.91
=0.169 =0.173 =0.162 =0.156

Fig. No. 4.5 Shareholder ‘s Equity Ratio

49
Inference: From the above table the shareholder equity ratio was high in year
Mar19 by 0.18% and low in the year Mar 23 by 0.15%, where in the year Mar
20 it started declining and it raised in Mar 21, still decline in the upcoming
years.

F. Debt-To-Asset Ratio

Table No.4.6 Debr-to Asset Ratio (Rs. In Crores)

PARAMETER Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

S
Total Debt 8162.97 9001.93 9349.51 15297.2 21626.2
8 3
Total Ass. 16696.4 19358.8 21992.6 27072.0 35232.9
9 2 9 8 1
Debt-To-Asset 0.488 0.465 0.425 0.565 0.613
Ratio
Working Note

Debt -To- Asset Ratio = Total Debts ÷ Total Assets

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
8162.97/ 9001.93/ 9349.51/ 15297.28/ 21626.23/
16696.49 19358.82 21992.69 27072.08 35232.91
=0.488 =0.465 =0.425 =0.565 =0.613

50
 Fig. No. 4.6 Debt-to- Asset Ratio

Inference: The above table shows that the debt-to-asset ratio was high in
the year Mar 23 by 0.6% and low in the year Mar 21 by 0.42% where it
gradually decreased from Mar 19 to 21 and it tend to raise in the upcoming
years.

G. Equity Ratio

Table. No. 4.7 Calculation of Equity Ratio (Rs. In Crores)

PARAMETER Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

S
Total Equity 3415.94 3603.04 4214.51 5053.01 5909.85
Total Assets 16696.4 19358.8 21992.6 27072.0 35232.9
9 2 9 8 1
Equity Ratio 0.204 0.186 0.191 0.186 0.167

51
 Working Note

Equity Ratio = Total Equity ÷ Total Assets

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
3415.94/ 3603.04/ 4214.51/ 5053.01/ 5909.85/
16696.49 19358.82 21992.69 27072.08 35232.91
=0.204 =0.186 =0.191 =0.186 =0.167
Fig. No. 4.7 Equity Ratio

Inference: The above table show that the equity ratio was high in the year Mar
19 by 0.2% and low in the year Mar 23 by 0.16% where from the year Mar 19
to 23 it gradually decreased.

52
 H. Fixed Asset Ratio

Table No. 4.8 Fixed Asset Ratio (Rs. In Crores)

PARAMETER Mar 19 Mar 20 Mar 21 Mar 22 Mar 23

S
Fixed Ass. 3923 4628.39 5073.51 5956.70 5894.43
Total Ass. 16696.4 19358.8 21992.6 27072.0 35232.9
9 2 9 8 1
Fixed Asset 0.23 0.24 0.23 0.22 0.17
Ratio
Working Notes

Fixed Asset Ratio = Fixed Asset ÷ Total Assets

Mar 19 Mar 20 Mar 21 Mar 22 Mar 23
3923/ 4628.39/ 5073.51/ 5956.70/ 5894.43/
16696.49 19358.82 21992.69 27072.08 35232.91
=0.23 =0.24 =0.23 =0.22 =0.17

Fig. No. 4.8 Fixed Asset Ratio

Inference: From the above table shown the fixed asset ratio was high in the
year Mar 20 by 0.24% and low in the year Mar 23 by 0.17% after the year Mar
20 it gradually decreased.

53
4.1.2 STATEMENT SHOWING TREND PERCENTAGE FOR THE PERIOD 2019 TO 2023

A. Trend Analysis on Liabilities

Table. No. 4.9 Trend Analysis on Liabilities (Rs. In Crores)

PARTICULARS YEAR END (Rs. IN CRORES) TREND PERCENTAGE BASE YEAR 2019
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
EQUITIES AND
LIABILITIES
Equity Share 47.51 47.51 47.51 47.51 47.51 100 100 100 100 100
Capital
TOTAL SHARE 47.51 47.51 47.51 47.51 47.51 100 100 100 100 100
CAPITAL
Reserves and 3122.6 3234.5 3779.1 4351.94 5,457.4 100 103.58 121.02 139.36 174.770
Surplus 6 9 9 4 2 6 5
TOTAL R&S 3122.6 3234.5 3779.1 4351.94 5,457.4 100 103.58 121.02 139.36 174.770
6 9 9
TOTAL 3170.1 3282.1 3826.6 4399.45 5,505.0 100 103.53 120.70 138.77 173.65
SHAREHOLDER 7 1 0 1 7 6
S FUNDS
Minority Interest 245.77 320.94 387.9 653.56 404.85 100 130.58 157.83 265.92 164.727
6 3 2
NON-CURRENT
LIABILITIES

53
 Long Term 4909.1 5221.2 6280.2 7305.77 9,064.0 100 106.35 127.92 148.81 184.636
Borrowings 6 3 6 8 7 9 9 1
Deferred Tax 96.96 173.77 218.9 207.56 208.37 100 179.21 225.76 214.06 214.903
Liabilities [Net] 8 3 8 1
Other LongTerm 0 204.12 210.87 457.78 600.65 100 100 103.30 224.27 294.263
Liabilities 7 2
Long Term 89.64 131.42 159.44 196.24 231.26 100 146.60 177.86 218.92 257.987
Provisions 9 7 5
TOTAL NON-CL 5095.7 5730.5 6869.4 8167.35 10,104. 100 112.45 134.80 160.27 198.289
6 4 7 3
CURRENT
LIABILITIES
Short Term 3253.8 3780.7 3069.2 7991.51 12,562. 100 116.193 94.327 245.60 386.075
Borrowings 1 5 15 9 5 1
Trade Payables 3159.6 3186.8 4298.6 4624.99 5,096.6 100 100.86 136.04 146.37 161.303
8 4 7 5 5 4
Other Current 1706.2 2967.1 3455.5 1127.8 1,444.1 100 173.89 202.52 66.098 84.6387
Liabilities 4 3 2 4 9 3 6 4
Short Term 65.06 90.57 85.34 107.42 115.74 100 139.21 131.17 165.10 177.897
Provisions
TOTAL CL 8184.7 10025. 10908. 13851.7 19,218. 100 122.48 133.28 169.23 234.80
2 7 7
TOTAL 16696. 19358. 21992. 27072.0 35,232. 100 115.945 131.72 162.14 211.0199
LIABILITIES 4 8 6 8 91 2

54
B. Trend Analysis on Assets

Table. No. 4.10 Trend Analysis on Assets (Rs. In Crores)

PARTICULARS YEAR END (Rs. IN CRORES) TREND PERCENTAGE BASE YEAR

2019
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
ASSETS
NON-
CURRENT
ASSETS
Tangible Assets 3116.51 3439.38 3504.3 4515.68 4,315.10 100 110.36 112.443 144.895 138.4594
Intangible Assets 61.98 183 528.44 889.49 835.88 100 295.257 852.598 1435.12 1348.629
Capital Work-In- 603.92 847.14 873.89 320.18 315.81 100 140.274 144.703 53.017 52.29335
Progress
FIXED ASSETS 3923 4628.39 5073.51 5956.7 5,894.43 100 117.981 129.327 151.84 150.2531
Non-Current 439.73 370.91 468.01 474.33 775.33 100 84.3495 106.431 107.868 176.3196
Investments
Deferred Tax 86.65 127.62 217.88 305.73 100 100 147.282 251.448 352.8332
Assets [Net]

55
 Long Term 3624.8 4148.49 5361.97 6716.45 10,321.42 100 114.447 147.925 185.292 284.7445
Loans And
Advances
Other Non- 188.98 197.07 236.43 289.17 331.72 100 104.281 125.108 153.016 175.5318
Current Assets
TOTAL NON- 8364.82 9619.82 11455.85 14224 18,225.68 100 115.003 136.953 170.046 217.8849
CA
CURRENT
ASSETS
Current 130.23 191.92 100 147.37
Investments
Inventories 1291.57 1188.47 1367.43 1642.36 1,921.51 100 92.0175 105.873 127.16 148.7732
Trade 1546.07 1454.36 1035.97 1155.24 1,232.20 100 94.0682 67.0067 74.7211 79.69885
Receivables
Cash And Cash 206.31 1107.57 1656.85 1535.61 1,879.11 100 536.847 803.088 744.322 910.8187
Equivalents
Short Term 4599.83 5306.84 5794.23 7299.25 10,225.16 100 115.37 125.966 158.685 222.2943
Loans And
Advances
Other Current 687.89 681.76 682.36 1085.39 1,557.33 100 99.1089 99.1961 157.785 226.3923
Assets
TOTAL CA 8331.67 9739 10536.84 12848.08 17,007.23 100 116.891 126.467 154.208 204.1275
TOTAL 16696.49 19358.82 21992.69 27072.08 35,232.91 100 115.945 131.72 162.142 211.0199
ASSETS

56
 9000

8000

7000

6000 Sum of %
5000 Sum of %2
Sum of %3
4000
Sum of %4
3000
Sum of %5
2000

1000

0
Total

Fig. No. 4.9 Trend Analysis

Inference: From the above table and chart, it is inferred that the value of
shareholder’s funds, non-current liabilities, current liabilities are trend to be
increasing in the following years. Companies’ long-term obligations appears to
be favourable throughout the study and it is inferred that other than tangible
and Intangible assets all other assets both current and non-current assets are
tended to increase year by year. It shows that the company performance from
the base year to the current year is favourable throughout the study.

57
 4.1.3 COMPARATIVE STATEMENT FOR TVS MOTOR COMPANY
LIMITED
Table No. 4.11 Liabilities of 2019-2020 (Rs. In Crores)
PARTICULARS 2019 2020 CHANGE IN CHANGE IN
ABSOLUTE PERCENTAGE
VALUE
EQU. AND LIA.
Equity Share 47.51 47.51 0 0%
Capital
TOTAL SHARE 47.51 47.51 0 0%
CAPITAL
R&S 3122.66 3,234.59 111.93 4%
TOTAL R&S 3122.66 3,234.59 111.93 4%
TOTAL S.F. 3170.17 3,282.10 111.93 4%
NON-CL.
Long Term 4909.16 5,221.23 312.07 6%
Borrowings
Deferred Tax 96.96 173.77 76.81 79%
Liabilities [Net]
Other Long Term 204.12 204.12
Lia.
Long Term 89.64 131.42 41.78 47%
Provisions
TOTAL NON-CL. 5095.76 5,730.54 634.78 12%

CL.
Short Term 3253.81 3,780.70 526.89 16%
Borrowings
Trade Payables 3159.68 3,186.84 27.16 1%
Other CL. 1706.24 2,967.13 1260.89 74%
Short Term 65.06 90.57 25.51 39%
Provisions
TOTAL CL. 8184.79 10,025.24 1840.45 22%
TOTAL CAP. 16696.49 19,358.82 2662.33 16%
AND LIA.

58
Table No. 4.12 Assets of 2019-2020 (Rs. In Crores)

ASSETS 2019 2020 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE
NON-CA.
Tangible Assets 3116.51 3,439.38 322.87 10%
Intangible Assets 61.98 183 121.02 195%
Capital Work-In- 603.92 847.14 243.22 40%
Progress
FIXED ASSETS 3923 4,628.39 705.39 18%
Non-Current 439.73 370.91 -68.82 -16%
Investments
Deferred Tax 86.65 86.65
Assets [Net]
Long Term Loans 3624.8 4,148.49 523.69 14%
And Advances
Other Non-CA. 188.98 197.07 8.09 4%

TOTAL NON-CA. 8364.82 9,619.82 1255 15%

CA.
Inventories 1291.57 1,188.47 -103.1 -8%
Trade Receivables 1546.07 1,454.36 -91.71 -6%
Cash And Cash 206.31 1,107.57 901.26 437%
Equivalents
Short Term Loans 4599.83 5,306.84 707.01 15%
And Adv.
-1%
Other CA. 687.89 681.76 -6.13
TOTAL CA. 8331.67 9,739.00 1407.33 17%

TOTAL ASSETS 16696.49 19,358.82 2662.33 16%

Other CA. 681.76 682.36 0.6 0%

TOTAL CA. 9,739.00 10,536.84 797.84 8%
TOTAL ASSETS 19,358.82 21,992.69 2633.87 14%

59
Table No. 4.13 Liabilities of 2020-2021 (Rs. In Crores)

PARTICULARS 2020 2021 CHANGE IN CHANGE IN

ABSOLUTE
VALUE
PERCENTAGE

EQU. AND LIA.

Equity Share 47.51 47.51 0 0%
Capital
TOTAL SHARE 47.51 47.51 0 0%
CAP.S
R&S 3,234.59 3,779.10 544.51 17%
TOTAL R&S 3,234.59 3,779.10 544.51 17%
TOTAL SF. 3,282.10 3,826.61 544.51 17%
NON-CL.
Long Term 5,221.23 6,280.26 1059.03 20%
Borrowings
Deferred Tax 173.77 218.9 45.13 26%
Liabilities [Net]
Other Long Term 204.12 210.87 6.75 3%
Liabilities
Long Term 131.42 159.44 28.02 21%
Provisions
TOTAL NON- 5,730.54 6,869.47 1138.93 20%
CL.
CL.
Short Term 3,780.70 3,069.25 -711.45 -19%
Borrowings
Trade Payables 3,186.84 4,298.60 1111.76 35%
Other CL. 2,967.13 3,455.52 488.39 16%
Short Term 90.57 85.34 -5.23 -6%
Provisions
TOTAL CL. 10,025.24 10,908.71 883.47 9%
TOTAL CAP. 19,358.82 21,992.69 2633.87 14%
AND LIA.

60
Table No. 4.14 Assets of 2020-2021 (Rs. In Crores)

ASSETS 2020 2021 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE
NON-CURRENT
ASSETS
Tangible Assets 3,439.38 3,504.30 64.92 2%
Intangible Assets 183 528.44 345.44 189%
Capital Work-In- 847.14 873.89 26.75 3%
Progress
FIXED ASSETS 4,628.39 5,073.51 445.12 10%
Non-Current 370.91 468.01 97.1 26%
Investments
Deferred Tax 86.65 127.62 40.97 47%
Assets [Net]
Long Term Loans 4,148.49 5,361.97 1213.48 29%
And Advances
Other Non-Current 197.07 236.43 39.36 20%
Assets
TOTAL NON- 9,619.82 11,455.85 1836.03 19%
CURRENT
ASSETS
CURRENT
ASSETS
Current
Investments
Inventories 1,188.47 1,367.43 178.96 15%
Trade Receivables 1,454.36 1,035.97 -418.39 -29%
Cash And Cash 1,107.57 1,656.85 549.28 50%
Equivalents
Short Term Loans 5,306.84 5,794.23 487.39 9%
And Advances

61
 Table No. 4.15 Liabilities of 2021-2022 (Rs. In Crores)

PARTICULARS 2021 2022 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE
EQU.AND LIA.
Equity Share 47.51 47.51 0 0%
Capital
TOTAL SHARE 47.51 47.51 0 0%
CAPITAL
R&S 3,779.10 4,351.94 572.84 15%
TOTAL R&S 3,779.10 4,351.94 572.84 15%
TOTAL SF. 3,826.61 4,399.45 572.84 15%
NON-CL.
Long Term 6,280.26 7,305.77 1025.51 16%
Borrowings
Deferred Tax 218.9 207.56 -11.34 -5%
Liabilities [Net]
Other Long Term 210.87 457.78 246.91 117%
Liabilities
Long Term 159.44 196.24 36.8 23%
Provisions
TOTAL NON- 6,869.47 8,167.35 1297.88 19%
CL.
CL.
Short Term 3,069.25 7,991.51 4922.26 160%
Borrowings
Trade Payables 4,298.60 4,624.99 326.39 8%
Other CL. 3,455.52 1,127.80 -2327.72 -67%
Short Term 85.34 107.42 22.08 26%
Provisions
TOTAL CL. 10,908.71 13,851.72 2943.01 27%
TOTAL CAP. 21,992.69 27,072.08 5079.39 23%
AND LIA.

62
 Table No. 4.16 Assets of 2021-2022 (Rs. In Crores)

ASSETS 2021 2022 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE
NON-CURRENT
ASSETS
Tangible Assets 3,504.30 4,515.68 1011.38 29%
Intangible Assets 528.44 889.49 361.05 68%
Capital Work-In- 873.89 320.18 -553.71 -63%
Progress
FIXED ASSETS 5,073.51 5,956.70 883.19 17%
Non-Current 468.01 474.33 6.32 1%
Investments
Deferred Tax 127.62 217.88 90.26 71%
Assets [Net]
Long Term Loans 5,361.97 6,716.45 1354.48 25%
And Advances
Other Non-Current 236.43 289.17 52.74 22%
Assets
TOTAL NON-CA 11,455.85 14,224.00 2768.15 24%
CURRENT
ASSET.
Current 130.23 130.23
Investments
Inventories 1,367.43 1,642.36 274.93 20%
Trade Receivables 1,035.97 1,155.24 119.27 12%
Cash And Cash 1,656.85 1,535.61 -121.24 -7%
Equivalents
Short Term Loans 5,794.23 7,299.25 1505.02 26%
And Advances
Other Current 682.36 1,085.39 403.03 59%
Assets
TOTAL CA 10,536.84 12,848.08 2311.24 22%
TOTAL ASSETS 21,992.69 27,072.08 5079.39 23%

63
 Table. No. 4.17 Liabilities of 2022-2023 (Rs. In Crores)

PARTICULARS 2022 2023 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE
EQU. AND LIA
Equity Share Capital 47.51 47.51 0 0%
TOTAL SHARE 47.51 47.51 0 0%
CAPITAL
Reserves and Surplus 4,351.94 5,457.49 1105.55 25%
TOTAL 4,351.94 5,457.49 1105.55 25%
RESERVES AND
SURPLUS
TOTAL SF. 4,399.45 5,505.00 1105.55 25%
NON-CL.
Long Term 7,305.77 9,064.08 1758.31 24%
Borrowings
Deferred Tax 207.56 208.37 0.81 0%
Liabilities [Net]
Other Long Term 457.78 600.65 142.87 31%
Liabilities
Long Term 196.24 231.26 35.02 18%
Provisions
TOTAL NON-CL. 8,167.35 10,104.36 1937.01 24%
CL.
Short Term 7,991.51 12,562.15 4570.64 57%
Borrowings
Trade Payables 4,624.99 5,096.67 471.68 10%
Other Current 1,127.80 1,444.14 316.34 28%
Liabilities
Short Term 107.42 115.74 8.32 8%
Provisions
TOTAL CL. 13,851.72 19,218.70 5366.98 39%
TOTAL CAP. AND 27,072.08 35,232.91 8160.83 30%
LIA

64
Table No.4.18 Assets of 2022-2023 (Rs. In Crores)

ASSETS 2022 2023 CHANGE CHANGE IN

IN PERCENTAGE
ABSOLUTE
VALUE
NON-CA.
Tangible Assets 4,515.68 4,315.10 -200.58 -4%
Intangible Assets 889.49 835.88 -53.61 -6%
Capital Work-In- 320.18 315.81 -4.37 -1%
Progress
FIXED ASSETS 5,956.70 5,894.43 -62.27 -1%
Non-Current 474.33 775.33 301 63%
Investments
Deferred Tax 217.88 305.73 87.85 40%
Assets [Net]
Long Term Loans 6,716.45 10,321.42 3604.97 54%
And Advances
Other Non-Current 289.17 331.72 42.55 15%
Assets
TOTAL NON-CA. 14,224.00 18,225.68 4001.68 28%
CA.
Current 130.23 191.92 61.69 47%
Investments
Inventories 1642.36 1,921.51 279.15 17%
Trade Receivables 1,155.24 1,232.20 76.96 7%
Cash And Cash 1,535.61 1,879.11 343.5 22%
Equivalents
Short Term Loans 7,299.25 10,225.16 2925.91 40%
And Advances
Other CA. 1,085.39 1,557.33 471.94 43%
TOTAL CA. 12,848.08 17,007.23 4159.15 32%
TOTAL ASSETS 27,072.08 35,232.91 8160.83 30%

65
Table No. 4.19 Liabilities 2019-2020 (Rs. In Crores)

PARTICULARS 2019 2020 CHANGE CHANGE IN

IN PERCENTAGE
ABSOLUTE
VALUE
EQU. AND LIA.
Equity Share 39.95 39.95 0 0%
Capital
TOTAL SHARE 39.95 39.95 0 0%
CAPITAL
R&S 12,807.58 14,081.01 1273.43 10%
TOTAL R&S 12,807.58 14,081.01 1273.43 10%
TOTAL SF. 12,807.58 14,081.01 1279.28 10%
NON-CL.
Deferred Tax 536.51 392.83 -143.68 -27%
Liabilities [Net]
Other Long Term 121.67 121.67
Liabilities
Long Term 117.2 122.37 5.17 4%
Provisions
TOTAL NON-CL 653.71 636.87 -16.84 -3%
CL.
Trade Payables 3,355.28 3,030.51 -324.77 -10%

Other Current 716.05 798.99 82.94 12%

Liabilities
Short Term 59.03 146.56 87.53 148%
Provisions
TOTAL CL 4,130.36 3,976.06 -154.3 -4%
TOTAL CAP. 17,641.19 18,749.33 1108.14 6%
AND LIA.

66
5.1.4 COMPARATIVE STATEMENT FOR HERO MOTOR CORP.
Table. No. 4.20 Assets of 2019-2020 (Rs. In Crores)

ASSETS 2019 2020 CHANGE CHANGE IN

IN PERCENTAGE
ABSOLUTE
VALUE
NON-CA.
Tangible Assets 4,477.53 5,976.99 1499.46 33%
Intangible Assets 141.05 140.09 -0.96 -1%
Capital Work-In- 360.67 160.25 -200.42 -56%
Progress
FIXED ASSETS 5,160.44 6,458.35 1297.91 25%
Non-Current 2,801.51 3,528.17 726.66 26%
Investments
Long Term 59.96 67.27 7.31 12%
Loans And
Advances
Other Non-CA. 1,503.64 406.98 -1096.66 -73%
TOTAL NON- 9,525.55 10,460.77 935.22 10%
CA.
CA.
Current 3,167.10 4,694.48 1527.38 48%
Investments
Inventories 1,072.37 1,091.97 19.6 2%

Trade 2,821.57 1,603.14 -1218.43 -43%

Receivables
Cash And Cash 136.46 241.86 105.4 77%
Equivalents
Short Term 25.03 22.36 -2.67 -11%
Loans And
Advances
Other Current 893.11 634.75 -258.36 -29%
Assets
TOTAL CA 8,115.64 8,288.56 172.92 2%

67
TOTAL 17,641.19 18,749.33 1108.14 6%
ASSETS

Table No. 4.21 Liabilities of 2020-2021 (Rs. In Crores)

PARTICULARS 2020 2021 CHANGE CHANGE IN

IN PERCENTAGE
ABSOLUTE
VALUE
EQUITIES AND
LIABILITIES
Equity Share Capital 39.95 39.96 0.01 0%
TOTAL SHARE 39.95 39.96 0.01 0%
CAPITAL
Reserves and 14,081.01 15,139.43 1058.42 8%
Surplus
TOTAL 14,081.01 15,139.43 1058.42 8%
RESERVES AND
SURPLUS
TOTAL 14,081.01 15,198.43 1062.03 8%
SHAREHOLDERS
FUNDS
NON-CL.
Deferred Tax 392.83 404.09 11.26 3%
Liabilities [Net]
Other Long Term 121.67 275.85 154.18 127%
Liabilities
Long Term 122.37 172.46 50.09 41%
Provisions
TOTAL NON-CL. 636.87 852.4 215.53 34%
CL.
Trade Payables 3,030.51 5,204.61 2174.1 72%
Other CL. 798.99 745.24 -53.75 -7%
Short Term 146.56 160.37 13.81 9%
Provisions
TOTAL CL. 3,976.06 6,110.22 2134.16 54%

68
 Table No. 4.22 Asset of 2020-2021 (Rs. In Crores)

ASSETS 2020 2021 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE
NON-CA.
Tangible Assets 5,976.99 5,698.15 -278.84 -5%
Intangible Assets 140.09 290.26 150.17 107%
Capital Work-In- 160.25 177.86 17.61 11%
Progress
FIXED ASSETS 6,458.35 6,425.00 -33.35 -1%
Non-Current 3,528.17 4,308.18 780.01 22%
Investments
Deferred Tax
Assets [Net]
Long Term 67.27 52.23 -15.04 -22%
Loans And
Advances
Other Non-CA. 406.98 422.85 15.87 4%
TOTAL NON- 10,460.77 11,208.26 747.49 7%
CA.
CA.
Current 4,694.48 6,191.49 1497.01 32%
Investments
Inventories 1,091.97 1,469.55 377.58 35%
Trade 1,603.14 2,426.76 823.62 51%
Receivables
Cash And Cash 241.86 257.15 15.29 6%
Equivalents
Short Term 22.36 36.94 14.58 65%
Loans And
Advances
Other CA. 634.75 570.9 -63.85 -10%
TOTAL CA. 8,288.56 10,952.79 2664.23 32%
TOTAL 18,749.33 22,161.05 3411.72 18%
ASSETS

69
Table No. 4.23 Liabilities of 2021-2022 (Rs. In Crores)

PARTICULARS 2021 2022 CHANGE CHANGE IN

IN PERCENTAGE
ABSOLUTE
VALUE
EQU. AND LIA.
Equity Share 39.96 39.96 0 0%
Capital
TOTAL SHARE 39.96 39.96 0 0%
CAPITAL
R&S 15,139.43 15,718.51 579.08 4%
TOTAL R&S 15,139.43 15,718.51 579.08 4%
TOTAL SF. 15,198.43 15,782.92 584.49 4%
NON-CL.
Deferred Tax 404.09 383.29 -20.8 -5%
Liabilities [Net]
Other Long Term 275.85 297.36 21.51 8%
Liabilities
Long Term 172.46 178.07 5.61 3%
Provisions
TOTAL NON- 852.4 858.72 6.32 1%
CL
CL.
Trade Payables 5,204.61 4,260.34 -944.27 -18%
Other Current 745.24 651.62 -93.62 -13%
Liabilities
Short Term 160.37 160.42 0.05 0%
Provisions
TOTAL CL 6,110.22 5,072.38 -1037.84 -17%
TOTAL 22,161.05 21,714.02 -447.03 -2%
CAPITAL AND
LIABILITIES

70
 Table No. 4.24 Assets of 2021-2022 (Rs. In Crores)

ASSETS 2021 2022 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAG
VALUE E
NON-CA.
Tangible Assets 5,698.15 5,507.98 -190.17 -3%
Intangible Assets 290.26 298.5 8.24 3%
Capital Work-In- 177.86 87.32 -90.54 -51%
Progress
FIXED ASSETS 6,425.00 6,264.68 -160.32 -2%
Non-Current 4,308.18 4,814.66 506.48 12%
Investments
Deferred Tax
Assets [Net]
Long Term Loans 52.23 59.03 6.8 13%
And Advances
Other Non-CA. 422.85 460.69 37.84 9%
TOTAL NON- 11,208.26 11,599.06 390.8 3%
CA.
CA.
Current 6,191.49 5,837.66 -353.83 -6%
Investments
Inventories 1,469.55 1,122.65 -346.9 -24%
Trade 2,426.76 2,304.27 -122.49 -5%
Receivables
Cash And Cash 257.15 175.12 -82.03 -32%
Equivalents
Short Term 36.94 22.81 -14.13 -38%
Loans And
Advances
Other CA. 570.9 652.45 81.55 14%
TOTAL CA. 10,952.79 10,114.96 -837.83 -8%
TOTAL 22,161.05 21,714.02 -447.03 -2%
ASSETS

71
 Table No. 4.25 Liabilities of 2022-2023 (Rs. In Crores)

PARTICULARS 2022 2023 CHANGE CHANGE IN

PERCENTAGE
IN
ABSOLUTE
VALUE
EQU. AND LIA.
Equity Share 39.96 39.97 0.01 0%
Capital
TOTAL SHARE 39.96 39.97 0.01 0%
CAPITAL
R&S 15,718.51 16,629.49 910.98 6%
TOTAL R&S 15,718.51 16,629.49 910.98 6%
TOTAL SF. 15,782.92 16,705.09 922.17 6%
NON-CL.
Deferred Tax 383.29 405.37 22.08 6%
Liabilities [Net]
Other Long Term 297.36 330.58 33.22 11%
Liabilities
Long Term 178.07 198.12 20.05 11%
Provisions
TOTAL NON- 858.72 934.07 75.35 9%
CL.
CL.
Trade Payables 4,260.34 4,704.46 444.12 10%
Other CL. 651.62 743.83 92.21 14%
Short Term 160.42 175.69 15.27 10%
Provisions
TOTAL CL. 5,072.38 5,623.98 551.6 11%
TOTAL 21,714.02 23,263.14 1549.12 7%
CAPITAL AND
LIABILITIES

72
Table No. 4.26 Assets of 2022-2023 (Rs. In Crores)

ASSETS 2022 2023 CHANGE IN CHANGE IN

ABSOLUTE PERCENTAGE
VALUE

NON-CA.
Tangible Assets 5,507.98 5,261.23 -246.75 -4%
Intangible Assets 298.5 500.19 201.69 68%
Capital Work-In- 87.32 128.55 41.23 47%
Progress
FIXED ASSETS 6,264.68 6,225.21 -39.47 -1%
Non-Current 4,814.66 7,372.48 2557.82 53%
Investments
Deferred Tax
Assets [Net]
Long Term Loans 59.03 19.87 -39.16 -66%
And Advances
Other Non-CA. 460.69 608.79 148.1 32%
TOTAL NON-CA 11,599.06 14,226.35 2627.29 23%
CA.
Current 5,837.66 3,637.88 -2199.78 -38%
Investments
Inventories 1,122.65 1,434.09 311.44 28%
Trade Receivables 2,304.27 2,798.21 493.94 21%
Cash And Cash 175.12 345.5 170.38 97%
Equivalents
Short Term Loans 22.81 23.71 0.9 4%
And Advances
Other CA. 652.45 797.4 144.95 22%
TOTAL CA 10,114.96 9,036.79 -1078.17 -11%
TOTAL ASSETS 21,714.02 23,263.14 1549.12 7%

73
Chart Showing the Comparative Analysis of Shareholder’s Fund between
TVS and HERO CORP from the year 2019-23

Fig. No. 4.10 Competitor Analysis of Shareholder’s Fund

Inference: From the above chart, the analysis shows that the shareholder funds
of TVS is slightly increasing from the base year to the current year compared
to the HERO CORP. It shows that there is excess assets over liabilities. So, the
company has enough assets to meet it liabilities.

74
Chart Showing the Comparative Analysis of Non-Current Liabilities
between TVS and HERO CORP from the year 2019-23

40% NON CURRENT LIABILITIES

35%
30%
25%
20%
15%
10%
5%
0%
-5% 2019-20 2020-21 2021-22 2022-23

TVS HERO

Fig. No. 4.11 Competitor Analysis of Non-Current Liabilities

Inference: From the above chart, the analysis shows that the non-current
liabilities of TVS is constantly growing in the following years where the HERO
CORP IN 2019-20 raised up to 30% and again declined in the 2020-21 to 0%
and again started increasing slightly. Where it describes that the company’s
cash flows, the more debt it can support without increasing its default risks.

75
Chart Showing the Comparative Analysis of Current Liabilities between
TVS and HERO CORP from the year 2019-23

TOTAL CURRENT LIABILITIES

60%
50%
40%
30%
20%
10%
0%
-10% 2019-20 2020-21 2021-22 2022-23
-20%
-30%

TVS HERO

Fig. No. 4.12 Competitor Analysis of Current Liabilities

Inference: From the above chart, the analysis shows that the current liabilities
of TVS has gone through fluctuation over the period where from 2019 to 2023
it faced the decrease by 10% and started raising on 2021 by 20% and started
declining on 2023 by 10% it declined whereas the HERO CORP has facing big
fluctuation over a period of time but at the year 2023 it started raising, where it
means that a company owes and expects to settle within one year.

76
Chart Showing the Comparative Analysis of Non-Current Asset between
TVS and HERO CORP from 2019-23

NON CURRENT ASSET

30%
25%
20%
15%
10%
5%
0%
2019-20 2020-21 2021-22 2022-23

TVS HERO

Fig. No. 4.13 Competitor Analysis of Non-Current Assets

Inference: From the above chart, the analysis shows that non-current asset of
TVS is continuously raises compared to HERO CORP where it faced to decline
from 2019 to 2021 but after 2022 it started increasing by 20%. Si it means that
the company is investing in long-term assets and acquiring investment. This
could signify growth, expansion, or strategic investment in the business.

77
Chart Showing the Comparative Analysis of Current Asset between TVS
and HERO CORP from 2019-23

CURRENT ASSET
40%

30%

20%

10%

0%
2019-20 2020-21 2021-22 2022-23
-10%

-20%

TVS HERO

Fig. No. 4.14 Competitor Analysis of Current Assets

Inference: From the above chart, the analysis shows that the current asset of
TVS raised to 30% till 2020 but after it faced decline stage till 2022 and
continue dropping compared to HERO CORP where it continuously raising
from 2020, where it means the company’s liquidity is decreasing, as it may be
using up its short-term assets or facing difficulties in collecting receivables or
managing inventory or indicates potential cash flow issues or changes in the
company’s operating environment.

78
 CHAPTER – V

5.1 FINDINGS, SUGGESTIONS, CONCLUSION

5.1.1 Findings

 Ratio Analysis
I. Current ratio was maximum in the year 2019 by 1.017 and it was
minimum in the year 2023 by 0.884, where it shows the current ratio
is declining year by year starting from the year 2020. It is due to
increase in current assets compared to current liabilities.
II. Quick ratio was maximum in the year 2019 by 0.860 and it was
minimum in the year 2023 by 0.784, where it shows after the year
2019 it is continuously decreasing in the upcoming years.
III. Cash ratio was maximum in the year 2021 by 0.075 and was
minimum in the year 2019 by 0.012, where it was in fluctuation
every year due to increase in liabilities compared to cash equivalent.
IV. Debt-to-equity was maximum in the year 2023 by 3.928 and was
minimum in the year 2021 by 2.443, where it was started raising
starting from the year 2021 from the result where both the debt and
equity comparatively raises in the following years.
V. Shareholder’s equity ratio was maximum in the year 2019 by 0.189
and was minimum in the year 2023 by 0.156, where it is slightly
decreasing year by year after the year 2021.
VI. Debt-to-asset ratio was maximum in the year 2023 by 0.613and was
minimum in the year 2021 by 0.425, where it was decreased up to
the year 2021 and started raising in the upcoming years due to both
debt and assets are comparatively raising in the following years.
VII. Equity ratio was maximum in the year 2019 by 0.204 and was
minimum in the year 2023 by 0.167, where there is a fluctuation seen

79
 in the following year due to there is a increase in assets compared to
equity.
VIII. Fixed asset ratio was maximum in the year 2020 by 0.24 and was
minimum in the year 2023 by 0.17, where there is decrease of fixed
asset ratio after the year 2020.
 Trend Analysis
It is inferred that the value of shareholder’s funds, non-current liabilities,
current liabilities are trend to be increasing in the following years.
Companies’ long-term obligations appears to be favourable throughout
the study and it is inferred that other than tangible and Intangible assets
all other assets both current and non-current assets are tended to increase
year by year. It shows that the company performance from the base year
to the current year is favourable throughout the study.
 Comparative Statement Analysis
Compared to HERO CORP, TVS performance in the division
shareholder’s fund, non-current and current liabilities, current and non-
current asset were comparatively stable and good.

80
5.1.2 Suggestions

 The company should maintain cash and cash equivalent sufficiently.

 Company should increase current assets and reduce current liabilities to
improve liquidity position.
 The company should prioritize growing its cash equivalent and reducing
its debt in order to have enough cash on hand to cover short-term
obligations.
 The company should focus on shareholder’s fund to increase the equity
fund in the upcoming years.
 The positive trend mean index that has been recorded in line with the
balance sheet; if this trend is sustained in the future years as it has been
in the previous five, it will likely rise in the upcoming years too.
 The TVS has outperformed HERO CORP in comparison, according to
the comparative analysis, with the exception of the latter’s tendency to
decrease its current liabilities.

81
5.1.3 Conclusion

The study conducted on trend analysis, ratio analysis and comparative

statement analysis at TVS MOTOR COMPANY LIMITED. The business needs
both long term and short-term finance. An attempt to use a competitive analysis
from comparative statement of balance sheet between two leading automotive
company in the industry which will lead the management to know the financial
performance of the company and deficiencies of financial element during past
five financial years. According to the project’s findings, the company is stable
over the growth phase and is still in a developed state; therefore, in order to
maintain its place in the industry, the company will need to continue its growth
in the future.

82
REFERENCES

REFERENCE WEBSITES

 http://tvsmotor.com
 http://www.moneycontrol.com
 http://www.corporatefinanceinstitute.com
 http://www.investopedia.com

REFERENCE BOOKS

 TVS MOTOR COMPANY LIMITED Annual Report Book (2019-2023)

 Management Accounting Book (T.S. Reddy & Dr. Y. Hari Prasad Reddy)
 Financial And Management Accounting by Dr. R. Thirumal Published
by Thakur Publishers.

REFERENCE JOURNAL

 Financial Performance Analysis of Adidas AG European Journal of

Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839
(Online) Vol.8, No.11, 2016.
 A comparative study on the financial performance analysis of TTK
Prestige Ltd and Hawkins Cookers Ltd in India National Journal of
Multidisciplinary Research and Development ISSN: 2455-9040 Impact
Factor: RJIF 5.22 www.nationaljournals.com Volume 3; Issue 3;
September 2018; Page No. 15-22.
 Impact Of Ratio Analysis on Financial Performance in Royal Enfield
(Bhavani Motors) Bidar MAR 2022 | IRE Journals | Volume 5 Issue 9 |
ISSN: 2456-8880.

83
 ANNEXURE 1

TVS MOTOR COMPANY LIMITED

BALANCE MAR MAR MAR MAR MAR

SHEET OF TVS
2019 2020 2021 2022 2023
MOTOR
COMPANY (in Rs.
Cr.)
EQUITIES AND
LIABILITIES
Equity Share 47.51 47.51 47.51 47.51 47.51
Capital
TOTAL SHARE 47.51 47.51 47.51 47.51 47.51
CAPITAL
Reserves and 3122.66 3234.59 3779.1 4351.94 5,457.49
Surplus
Reserves and 3122.66 3234.59 3779.1 4351.94 5,457.49
Surplus
TOTAL R&S 3122.66 3234.59 3779.1 4351.94 5,457.49

TOTAL 3170.17 3282.1 3826.61 4399.45 5,505.00

SHAREHOLDERS
FUNDS
Minority Interest 245.77 320.94 387.9 653.56 404.85

NON-CURRENT
LIABILITIES
Long Term 4909.16 5221.23 6280.26 7305.77 9,064.08
Borrowings
Deferred Tax 96.96 173.77 218.9 207.56 208.37
Liabilities [Net]
Other LongTerm 0 204.12 210.87 457.78 600.65
Liabilities
Long Term 89.64 131.42 159.44 196.24 231.26
Provisions
TOTAL NON-CL 5095.76 5730.54 6869.47 8167.35 10,104.3

CURRENT
LIABILITIES

84
 Short Term 3253.81 3780.7 3069.25 7991.51 12,562.15
Borrowings
Trade Payables 3159.68 3186.84 4298.6 4624.99 5,096.67

Other Current 1706.24 2967.13 3455.52 1127.8 1,444.14

Liabilities
Short Term 65.06 90.57 85.34 107.42 115.74
Provisions
8184.79 10025.2 10908.7 13851.7 19,218.7
TOTAL CL
TOTAL 16696.4 19358.8 21992.6 27072.08 35,232.91
LIABILITIES
ASSETS
NON-CURRENT
ASSETS
Tangible Assets 3116.51 3439.38 3504.3 4515.68 4,315.10

Intangible Assets 61.98 183 528.44 889.49 835.88

Capital Work-In- 603.92 847.14 873.89 320.18 315.81

Progress
FIXED ASSETS 3923 4628.39 5073.51 5956.7 5,894.43

Non-Current 439.73 370.91 468.01 474.33 775.33

Investments
Deferred Tax 86.65 127.62 217.88 305.73
Assets [Net]
Long Term Loans 3624.8 4148.49 5361.97 6716.45 10,321.42
And Advances
Other Non- 188.98 197.07 236.43 289.17 331.72
Current Assets
TOTAL NON- 8364.82 9619.82 11455.85 14224 18,225.68
CURRENT
ASSETS
CURRENT
ASSETS
Current 130.23 191.92
Investments
Inventories 1291.57 1188.47 1367.43 1642.36 1,921.51

Trade Receivables 1546.07 1454.36 1035.97 1155.24 1,232.20

85
 Cash And Cash 206.31 1107.57 1656.85 1535.61 1,879.11
Equivalents
Short Term Loans 4599.83 5306.84 5794.23 7299.25 10,225.16
And Advances
Other Current 687.89 681.76 682.36 1085.39 1,557.33
Assets
TOTAL 8331.67 9739 10536.84 12848.08 17,007.23
CURRENT
ASSETS
TOTAL ASSETS 16696.4 19358.8 21992.6 27072.0 35,232.9

86
 HERO MOTOCORP Ltd.

BALANCE MAR MAR MAR MAR MAR

SHEET OF
2019 2020 2021 2022 2023
HERO
MOTOCORP (in
Rs. Cr.)
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share 39.95 39.95 39.96 39.96 39.97
Capital
TOTAL SHARE 39.95 39.95 39.96 39.96 39.97
CAPITAL
Reserves and 12,807.58 14,081.01 15,139.43 15,718.51 16,629.49
Surplus
TOTAL 12,807.58 14,081.01 15,139.43 15,718.51 16,629.49
RESERVES AND
SURPLUS
TOTAL 12,857.12 14,136.40 15,198.43 15,782.92 16,705.09
SHAREHOLDERS
FUNDS
Minority Interest 116.11 140.60 143.19 148.05 125.06
NON-CURRENT
LIABILITIES
Long Term 0.00 0.00 0.00 0.00 0.00
Borrowings
Deferred Tax 536.51 392.83 404.09 383.29 405.37
Liabilities [Net]
Other Long Term 0.00 121.67 275.85 297.36 330.58
Liabilities

87
 Long Term 117.20 122.37 172.46 178.07 198.12
Provisions
TOTAL NON- 653.71 636.87 852.40 858.72 934.07
CURRENT
LIABILITIES
CURRENT
LIABILITIES
Short Term 0.00 0.00 0.00 0.00 0.00
Borrowings
Trade Payables 3,355.28 3,030.51 5,204.61 4,260.34 4,704.46
Other Current 716.05 798.99 745.24 651.62 743.83
Liabilities
Short Term 59.03 146.56 160.37 160.42 175.69
Provisions
TOTAL CURRENT 4,130.36 3,976.06 6,110.22 5,072.38 5,623.98
LIABILITIES
TOTAL CAPITAL 17,641.19 18,749.33 22,161.05 21,714.02 23,263.14
AND LIABILITIES
ASSETS

NON-CURRENT
ASSETS
Tangible Assets 4,477.53 5,976.99 5,698.15 5,507.98 5,261.23
Intangible Assets 141.05 140.09 290.26 298.50 500.19
Capital Work-In- 360.67 160.25 177.86 87.32 128.55
Progress
FIXED ASSETS 5,160.44 6,458.35 6,425.00 6,264.68 6,225.21
Non-Current 2,801.51 3,528.17 4,308.18 4,814.66 7,372.48
Investments
Deferred Tax Assets 0.00 0.00 0.00 0.00 0.00
[Net]
Long Term Loans 59.96 67.27 52.23 59.03 19.87
And Advances
Other Non-Current 1503.64 406.98 422.85 460.69 608.79
Assets
TOTAL NON- 9525.55 10,460.77 11,208.26 11,599.06 14,226.35
CURRENT
ASSETS

88
 CURRENT
ASSETS
Current 3,167.10 4,694.48 6,191.49 5,837.66 3,637.88
Investments
Inventories 1072.37 1,091.97 1,469.55 1,122.65 1,434.09
Trade Receivables 2,821.57 1,603.14 2,426.76 2,304.27 2,798.21
Cash And Cash 136.46 241.86 257.15 175.12 345.50
Equivalents
Short Term Loans 25.03 22.36 36.94 22.81 23.71
And Advances
Other Current 893.11 634.75 570.90 652.45 797.40
Assets
TOTAL CURRENT 8,115.64 8,288.56 10,952.79 10,114.96 9,036.79
ASSETS
TOTAL ASSETS 17,641.19 18,749.33 22,161.05 21,714.02 23,263.14

89
 The Board of
International Journal of Research and Analytical Reviews (IJRAR)
Is hereby awarding this certificate to
Selvi. A. GUNALISA
In recognition of the publication of the paper entitled
A STUDY ON TREND ANALYSIS OF FINANCIAL STATEMENT WITH SPECIAL REFERENCE TO TVS

MOTOR COMPANY LTD

Published In IJRAR ( www.ijrar.org ) UGC Approved - Journal No : 43602 & 7.17 Impact Factor

Volume 11 Issue 2 May 2024, Date of Publication: 30-May-2024

PAPER ID : IJRAR24B3789 EDITOR IN CHIEF

Registration ID : 291650

UGC and ISSN Approved - Scholarly open access journals, Peer-reviewed, and Refereed Journals, Impact factor 7.17 (Calculate by google
scholar and Semantic Scholar | AI-Powered Research Tool) , Multidisciplinary, Monthly Journal
© 2024 IJRAR May 2024, Volume 11, Issue 2 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

A STUDY ON TREND ANALYSIS OF

FINANCIAL STATEMENT WITH SPECIAL
REFERENCE TO TVS MOTOR COMPANY LTD
Selvi. A. Gunalisa and Ms. A. Suganthi
PG Student and Assistant Professor,
Department of Management Studies, IFET College of Engineering, IFET Nagar, Gangarampalayam,
Villupuram District, Tamil Nadu, India.
Abstract: The study on trend analysis of financial statements with special reference to TVS Motor Company
Limited was the focus of the project report. The company's balance sheet for the years 2019 through 2023
served as the basis for the research. This study examines trends that offer insights into potential future
developments based on these reports, enabling us to plan strategically and determine the financial performance
that will enable us to determine what has to be improved in the upcoming years.

Key Word: Trend Analysis, TVS Motor Company, Balance Sheet, Financial Performance

INTRODUCTION:

According to financial statement analysis, which is essential to comprehending the financial health of an
organization. Internal constituents use it as a monitoring tool for managing finances, while external
stakeholders use it to understand the entire performance and business value of an organization. Serving as a
business’s “report card” on financial health, it consists of an examination of the balance sheet, Income
statement and cash flow statement-three key financial document that all businesses need to keep on files. The
balance sheet provides an overview of a company’s assts, liabilities (debt), and equity at the conclusion of an
accounting period. It also provides a report on the book value of the company’s assets. The financial health of
the company is pivotal for its stakeholders, including investors, creditors, management, and regulatory bodies.
One of the most insightful methods to assess this health is through trend analysis of financial statements. This
project delves into the examination of financial statements over multiple periods to identify significant trends
and patterns that can indicate the direction of a company’s financial performance.

OBJECTIVES

• To study the trend analysis through financial statement of TVS Motor Ltd.
• To analyse the trends which provides insights into future possibilities based
on historical trends and helps in strategic planning.
RESEARCH METHODOLOGY

The practical "how" of a research study is referred to as research technique. To be more exact, it includes the
methodical ways in which a researcher plans a study that ensure accurate and reliable outcomes that answer
the goals, objectives, and research questions. The analytical study is one of the research designs used in
research methodology. These designs play a crucial role in understanding relationships between numerous
variables, answering why-and-how inquiries, and conforming hypotheses. In a variety of academic fields,

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© 2024 IJRAR May 2024, Volume 11, Issue 2 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
analytical study designs help as explore relationships, spot trends, and promote evidence-based decision-
making.

DATA ANALYSIS
Trend Analysis

Trend analysis is a valuable tool used for financial analysis. It aids in our comprehension of how particular
financial metrics evolve over time. a method that is frequently used in many different fields that entails
gathering data and identifying patterns Trend analysis is a useful tool for comprehending patterns, making
wise decisions, and managing uncertainties in addition to being able to forecast future events. The goal is to
calculate and analyse
 Change in Amount (Absolute Trend Analysis)
 Percentage Change (Relative Trend Analysis)
Index Numbers

A type of horizontal analysis known as index numbers, sometimes referred to as a trend percentage, shows
changes or patterns in a company’s financial statement accounts overtime. Instead of using percentage changes
to analyse patterns across several years, index numbers are utilized. These index values show an item’s value
in relation to a selected base year (which is 100%).

Index year ÷ Base year × 100

STATEMENT SHOWING TREND PERCENTAGE FOR THE PERIOD 2019 TO 2023

Table No. 1 Trend Analysis on Non-Current Liabilities

PARTICULARS YEAR END (Rs. IN CRORES) TREND PERCENTAGE BASE YEAR 2019
2019 2020 2021 2022 2023 201 2020 2021 2022 2023
9
EQUITIES AND
LIABILITIES

Equity Share 47.51 47.51 47.51 47.51 47.51 100 100 100 100 100
Capital

TOTAL SHARE 47.51 47.51 47.51 47.51 47.51 100 100 100 100 100
CAPITAL

Reserves and 3122.66 3234.59 3779.1 4351.94 5,457.49 100 103.58 121.02 139.36 174.770
Surplus 4 2 6 5

TOTAL 3122.66 3234.59 3779.1 4351.94 5,457.49 100 103.58 121.02 139.36 174.770
RESERVES AND 4 2 6 5
SURPLUS
TOTAL 3170.17 3282.1 3826.61 4399.45 5,505.00 100 103.53 120.70 138.77 173.65
SHAREHOLDER 1 7 6
S FUNDS

Minority Interest 245.77 320.94 387.9 653.56 404.85 100 130.58 157.83 265.92 164.727
6 3 2

NON-CURRENT
LIABILITIES

Long Term 4909.16 5221.23 6280.26 7305.77 9,064.08 100 106.35 127.92 148.81 184.636
Borrowings 7 9 9 1

Deferred Tax 96.96 173.77 218.9 207.56 208.37 100 179.21 225.76 214.06 214.903
Liabilities [Net] 8 3 8 1

IJRAR24B3789 International Journal of Research and Analytical Reviews (IJRAR) 476

© 2024 IJRAR May 2024, Volume 11, Issue 2 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
Other Long Term 0 204.12 210.87 457.78 600.65 100 100 103.30 224.27 294.263
Liabilities 7 2

Long Term 89.64 131.42 159.44 196.24 231.26 100 146.60 177.86 218.92 257.987
Provisions 9 7 5

TOTAL NON- 5095.76 5730.54 6869.47 8167.35 10,104.3 100 112.45 134.80 160.27 198.289
CURRENT 6 7 8 7 6
LIABILITIES

Interpretation: According to the trend table above, total shareholder funds are anticipated to rise from 100
to 173.65, yet non-current liabilities are anticipated to rise from 100 to 198.28 in the years ahead.

Table No. 2 Trend Analysis on Current Liabilities

PARTICULARS YEAR END (Rs. IN CRORES) TREND PERCENTAGE BASE YEAR 2019
2019 2020 2021 2022 2023 201 2020 2021 2022 2023
9
CURRENT
LIABILITIES

Short Term 3253.81 3780.7 3069.25 7991.51 12,562.1 100 116.19 94.327 245.60 386.075
Borrowings 5 3 9 5 1

Trade Payables 3159.68 3186.84 4298.6 4624.99 5,096.67 100 100.86 136.04 146.37 161.303
5 5 4

Other Current 1706.24 2967.13 3455.52 1127.8 1,444.14 100 173.89 202.52 66.098 84.6387
Liabilities 9 3 6 4

Short Term 65.06 90.57 85.34 107.42 115.74 100 139.21 131.17 165.10 177.897
Provisions 1 9 3

8184.79 10025.2 10908.7 13851.7 19,218.7 100 122.48 133.28 169.23 234.809
TOTAL 4 1 2 0 6 7 9
CURRENT
LIABILITIES

TOTAL CAPITAL 16696.4 19358.8 21992.6 27072.0 35,232.9 100 115.94 131.72 162.14 211.019
AND 9 2 9 8 1 5 2 9
LIABILITIES

Interpretation: It can be estimated from the trend table above that current liabilities will likely go up from
100 to 234.80. In general, the balance sheet's liabilities and capital are growing significantly.

Table No. 3 Trend Analysis on Non-Current Assets

PARTICULARS YEAR END (Rs. IN CRORES) TREND PERCENTAGE BASE YEAR 2019
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
ASSETS

NON-
CURRENT
ASSETS

Tangible Assets 3116.51 3439.38 3504.3 4515.68 4,315.10 100 110.36 112.443 144.895 138.4594

Intangible Assets 61.98 183 528.44 889.49 835.88 100 295.257 852.598 1435.12 1348.629

Capital Work-In- 603.92 847.14 873.89 320.18 315.81 100 140.274 144.703 53.017 52.29335
Progress

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FIXED ASSETS 3923 4628.39 5073.51 5956.7 5,894.43 100 117.981 129.327 151.84 150.2531

Non-Current 439.73 370.91 468.01 474.33 775.33 100 84.3495 106.431 107.868 176.3196
Investments

Deferred Tax 86.65 127.62 217.88 305.73 100 100 147.282 251.448 352.8332
Assets [Net]

Long Term Loans 3624.8 4148.49 5361.97 6716.45 10,321.42 100 114.447 147.925 185.292 284.7445
And Advances

Other Non- 188.98 197.07 236.43 289.17 331.72 100 104.281 125.108 153.016 175.5318
Current Assets

TOTAL NON- 8364.82 9619.82 11455.85 14224 18,225.68 100 115.003 136.953 170.046 217.8849
CURRENT
ASSETS

Interpretation: From the above table, it is inferred that the trend table of non-current assets are tend to
increase from 100 to 217.88 in the year from 2019 to 2023. Total current assets were increased till the end of
the year 2023.

Table No. 4 Trend Analysis on Current Assets

PARTICULAR YEAR END (Rs. IN CRORES) TREND PERCENTAGE BASE YEAR 2019
S
2019 2020 2021 2022 2023 201 2020 2021 2022 2023
9
CURRENT
ASSETS

Current 130.23 191.92 100 147.37

Investments

Inventories 1291.57 1188.47 1367.43 1642.36 1,921.51 100 92.017 105.87 127.16 148.773
5 3 2

Trade 1546.07 1454.36 1035.97 1155.24 1,232.20 100 94.068 67.006 74.721 79.6988
Receivables 2 7 1 5

Cash And Cash 206.31 1107.57 1656.85 1535.61 1,879.11 100 536.84 803.08 744.32 910.818
Equivalents 7 8 2 7

Short Term 4599.83 5306.84 5794.23 7299.25 10,225.1 100 115.37 125.96 158.68 222.294
Loans And 6 6 5 3
Advances

Other Current 687.89 681.76 682.36 1085.39 1,557.33 100 99.108 99.196 157.78 226.392
Assets 9 1 5 3

TOTAL 8331.67 9739 10536.8 12848.0 17,007.2 100 116.89 126.46 154.20 204.127
CURRENT 4 8 3 1 7 8 5
ASSETS

TOTAL 16696.4 19358.8 21992.6 27072.0 35,232.9 100 115.94 131.72 162.14 211.019
ASSETS 9 2 9 8 1 5 2 9

Interpretation: From the above table, it is inferred that the trend table of current assets are tend to increase
from 100 to 204.12 in the year from 2019 to 2023. Total current assets were increased till the end of the year
2023.

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© 2024 IJRAR May 2024, Volume 11, Issue 2 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
FINDINGS

 It is inferred that the value of shareholder’s funds, non-current liabilities, current liabilities are trend
to be increasing in the following years.
 Companies’ long-term obligations appears to be favourable throughout the study.
 It is inferred that other than intangible and tangible assets all other assets both current and non-current
assets are tended to increase year by year.
 It shows that the company performance from the base year to the current year is favourable throughout
the study.

SUGGESTIONS

 Company should increase current assets and reduce current liabilities to improve liquidity position.
 Company should prioritize growing its cash equivalent and reducing its debt in order to have enough
cash on hand to cover short-term obligations.
 Company should focus on shareholder’s fund to increase the equity fund in the upcoming years.
 Positive trend mean index that has been recorded in line with the balance sheet; if this trend is sustained
in the future years as it has been in the previous five, it will likely rise in the upcoming years too.
CONCLUSION

According to the project’s findings, the company is stable over the growth phase and is still in a developed
state; therefore, in order to maintain its place in the industry, the company will need to continue doing so in
the years to come. I attempted to present the company with my result along with suggestions based on my best
understanding of the research study and interpretation. Eventually, the project greatly aids in understanding
the practical aspects of the sector.

Reference:

 Johnson, S., & Brown, M. (2023). Impact of Global Economic Changes on Financial Statement Trends
(2022-2024). International Journal of Financial Research, 39(2), 210-225.
 Doe, J., & Smith, J. (2022). Financial Statement Analysis: Trends and Predictions for 2022-2024.
Journal of Finance and Accounting, 45(3), 112-130.
 P. Siva Reddy & Yathati Keerthana, Volume 10, Issue 3 – 2020, ISSN: 1548-774, Journal of
Information and Computational Science, Trend Analysis of NTTPS: The Exposure.
 Jackson, A. B. (2022). "Financial statement analysis: a review and current issues".
 Grimm, C. (2023). "Analysing Financial Statements: Ratios and Trend Analysis"
 Dechow, P. M., Ge, W., & Schrand, C. M. (2020). "Understanding earnings quality: A review of the
proxies, their determinants and their consequences".
 Lev, B., & Gu, F. (2021). "The end of accounting and the path forward for investors and managers".
 Lundholm, R. J., & Sloan, R. G. (2021). "Equity Valuation and Analysis with EVal".
 Penman, S. H. (2022). "Financial Statement Analysis and Security Valuation".
 Harris, W., & Martin, O. (2023). Sector-Specific Financial Trends: A Comparative Study (2022-2024).
Sector Analysis Review, 14(4), 98-115.

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