Project Report OF

Study of financial statement Toyota India with respect to Mumbai.

Submitted by
SOHEL RANASARIYA

Roll no. 33
Under the guidance of
Prof. Ansari Naseem Ahmad
Designation: Faculty

Department: Bachelors of management studies

K.H.M.W. College
Submitted in partial fulfillment of

MUMBAI UNIVERSITY
K.H.M.W. COLLEGE OF COMMERCE

BACHELORS OF MANAGEMENT STUDIES, JOGESHWARI

(WEST)
MUMBAI
2018 – 2019

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 DECLARATION

I, Mr. SOHEL RANASARIYA, of K.H.M.W. College of Commerce &

Management of TYBMS [Semester VI] hereby declare that I have completed my
project, titled “Study of financial statement Toyota India with respect to
Mumbai.” In the Academic Year 2018-2019. The information submitted herein is
true and original to the best of my knowledge.

_________________

Signature of Student
[SOHEL RANASARIYA]
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 CERTIFICATE

This is to certify that, SOHEL RANASARIYA, Student of K.H.M.W.

COLLEGE OF COMMERCE AND MANAGEMENT has completed this project.
The title “Study of financial statement Toyota India with respect to
Mumbai.” as a part of T.Y.B.M.S course 2018-19 has collected the required
information to reliable sources. This project is complete and fit for submission.

___________________ _______________________
Signature of the Principal Signature of Project Guide &
Internal Examiner

___________________ _______________________
(External Examiner) (BMS Co- Ordinator)

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 ACKNOWLEDGEMENT

I would like to thank the University of Mumbai, for introducing the BMS course,
there by giving its students a platform to keep abreast with the changing business
scenario, with the help of theory as a base and practical as a solution.

This project would have been incomplete without the endless support and guidance
of Professor ANSARI NASEEM AHMAD, my project guide.

I would also like to express my sincere gratitude towards our respected Principal
MR. AZIZ SHAIKH.

My friends who have been a great source of inspiration throughout the making of
this project, their support is deeply acknowledged.

SOHEL RANASARIYA

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 ABSTRACTS

The Indian automobile trade became the fourth largest within the world with sales increasing 9.5
per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017 . Toyota Motor
Corporation entered India in 1997 in a venture with the Kirloskar group. Toyota Motor
Corporation (TMC) holds 89 of the share and the remaining 11% is owned by Kirloskar group. It
is presently the fourth largest automotive maker in india

The economic performance of a company is often considered as a measure of its success. We

regularly analyze our financial soundness and ensure we remain economically stable, to create
and share more value to all our stakeholders. Financial Year 2017-18 was a year of profits. ,
keeping ‘customer satisfaction’ as the focal point of business operations.

company is on the positive trend is its fixed asset ratio. In Toyota, the fixed assets are increasing
which means that the company is buying raw materials and assets required for the growth. There
is money available and hence the company is able to increase it fixed assets and through this the
company can increase its overall financial position.

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S.NO CONTENTS Page No.

Abstract I

List of tables II

1 Industry Profile 10

2 Company Profile 14

3 Product profile 20

4 Production process 26

5 Financial statement 36

6 Financial analysis 46

7 Findings and Suggestions 68

8 Conclusion 70

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 The main objectives behind preparing this report are as below

 The report contains the information of financial ratio of the Toyota Kirloskar Motor Pvt
Ltd.

 To study the financial position of Toyota motors.

 To study the various ratio of Toyota such as current ratio ,quick ratio, profitability ratio,
etc.

 To study the income statement of Toyota.

 To find out the earning of Toyota motors.

 To study the status of Toyota in terms of financial position.

 To assess in depth the liquidity, efficiency and profitability of selected companies

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 LIMITATION

Availability of resources in gathering data and information is one of the major limitation. a small
chances of source may be not reliable. no primary data was used due to time and cost constraints.

There are many limitation using ratio analysis such as :

 No 100% accuracy due to secondary data source

 Financial language are complex difficult to study.
 Financial statement not focus on non-financial issue.
 Calculating the ratio is time consuming.
 Ratios are relationships expressed in mathematical terms between the figures that are
connected with each other in some manner

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 DATA COLLECTION METHOD

There are two method of data collection one is primary data and another is secondary data.

Primary which is collected by own self (first hand information)

Secondary data means which is readily available.

The data for this report is based on secondary method.

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 INDUSTRY OVERVIEW

INDUSTRY PROFILE :

Rising fuel costs and growing environmental issues have shifted customers preferences removed
from fuel-guzzling pickup trucks to smaller additional fuel-efficient cars. Some automakers
embraced the change by expanding their small-car into the production of hybrid electric motor
vehicles.

The Indian automobile trade became the fourth largest within the world with sales increasing 9.5
per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th
largest manufacturer of commercial vehicles in 2017.The automotive sector is one of the key
segments of the economy having extensive linkages with other key segment of the economy. it
contributes 7.1 per cent in India’s gross domestic product(GDP) and 49 percent to the national
manufacturing GDP. For every vehicle made, direct and indirect employment opportunities are
generated with the use of thirteen persons for every truck, six persons for every automobile and 4
for every three-wheeler, and one person for two-wheelers. The passenger vehicle sales in India
crossed the 3.2 million units in FY18, and is further expected increase to 10 million units by
FY20.

MARKET SHARES OF AUTOMATIVE INDUSTRY IN INDIA :

In terms of the automobile market size, the two-wheeler segment dominates with an 81 percent
market share in the Indian automobile market, owing to its young population and a burgeoning
middle class. An increasing interest exhibited by firms in exploring the country’s huge rural
market additional aids the expansion of this sector. Finally, India’s traveler vehicle (PV) phase
holds a 13 % market share

FUTURE OF AUTOMATIVE INDUSTRY IN INDIA

The automobile trade is supported by numerous factors like accessibility of skilled labour at low
value, sturdy R&D centers and low value production. The trade additionally provides great
opportunities for investment and direct and indirect employment to skilled and unskilled labour.

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Indian automotive trade (including element manufacturing) is anticipated to achieve Rs 16.16-
18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent
in 2018.

TOP AUTOMATIVE INDUSTRY IN INDIA :

Maruti Suzuki , Tata Motors , Toyota , Honda , Ford , Hyundai , Volkswagen ,

Mahindra & Mahindra , Renault India.

MARKET SHARE IN INDIA :

Porter’s 5 forces reference to the automotive business in Asian nation as follows

Threat New entrants :

In the majority of markets, the expertise and capital required to set up parts or auto
manufacturing facilities would be a huge entry barrier. What this suggests is that new entrants
would have a tough time putting in place. However, this is often not the case in the Asian nation
given its unimaginable forecasts on growth, infrastructure progress as well as ever-increasing
financing options. All of these aspects make the industry attractive. This translates to:

• High capital requirement

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• High sunk costs that limit competition

• The requirement of advanced technologies

• The patent limit for new competition

• Economies of scale

• Need to brand names that are strong

Customers/buyers bargaining power :

When it involves selection, buyers in India have numerous options to choose from. There are
over twenty foreign manufacturers in the country and this includes high-end manufacturers like
Lamborghini and Rolls-Royce. What is additional, they also have a large number of cheap
options to choose from such as the well known Tata Nano. Because of this:

• The buyer price sensitivity is low

• There is a low distributors dependency

• The number of customers is large

The threat of substitute products :

India is documented for 2-wheelers (mopeds and bikes) and three wheelers which are real and
obvious threats to makers of vehicles. This means:

• There is a high threat in terms of making a switch to substitutes

• The substitutes are limited

Bargaining power held by suppliers:

It is very likely that manufacturers have high bargaining power. This means they can't be
command at ransom by one manufacturer as a result of they'll simply market their product in the
Asian nation. This translates to:

• High level of competition among suppliers

• Low suppliers concentration

• Critical inputs production

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• Critical volume to suppliers

Level of rivalry among competitors :

The group action in the Asian nation is high and however, the business has not however reached
its section of shake out and it's still creating struggles to live up to leaders in the automobile
industry. This is translated to:

• Product differentiation

• Low costs of storage

• Limitations by the government to curb competition

• Large size industry

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 COMPANY PROFILE

TOYOTA COPORATE OVERVIEW :

Toyota Motor Corporation is an Japanese automobile manufacturer. Founders kiichiro toyoda. It

founded in 1937. headquartered in Toyota City, Aichi, Japan Toyota involve in the
design, manufacturer, assembly ,and sale of passenger car, commercial vehicles,
trucks, electric vehicle. recent time Toyota focusing in hybrid vehicles due to
environmental concern. current brands of Toyota include Lexus, Daihatsu and hino.
Toyota is the six largest company in the world by the revenue. Toyota's corporate
structure consisted of 364,445 employees worldwide. Toyota also involve in non automotive
business such as finance, housing finance, marine product, biotechnology & afforastation.

TOYOTA INDIA :

Toyota Motor Corporation entered India in 1997 in a venture with the Kirloskar group. Toyota
Motor Corporation (TMC) holds 89 of the share and the remaining 11% is owned by Kirloskar
group. It is presently the fourth largest automotive maker in india after Maruti Suzuki, Hyundai,
and Mahindra. toyota kirloskar also has Toyota Kirloskar Auto Parts Private Limited. toyota has
currently employed 7200 employees.

Toyota manufacturing plant located in bidadi ,karntaka has capacity of around 1,10,000cars per
annum. second manufacturing plant on Bangalore, Karnataka has a capacity of 210,000 vehicles
per annum. it declared that it had been increasing production to 210,000 vehicles each year. due
to increase in demand for its models particularly the Etios and Fortuner. Toyota Kirloskar Motor
becomes the first automobile manufacturer in India to get the ISO 22000:2005 Certification.

As of april 2011, it has quite 205 dealerships in 98 cities across 22 states and 3 union territories
of Republic of India.

SWOT ANALYSIS OF TOYOTA :

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SWOT Analysis SWOT an acronym that stands for Strengths, Weakness, Opportunities and
Threats. SWOT analysis is a careful evaluation of an organization internal strengths and
weaknesses as well as it external opportunities and threats.

Strength

 Toyota is 4 largest automobile manufacturer in india

 Its brand image in market is based on Quality and environmental friendly.
 It is best known for durability, reliability and value for money and convenient.
 Second largest manufacturer automobile company in the world.
 International Position in 170 countries worldwide.

Weakness

 Production capacity that is it produces most of its cars in US and JAPAN whereas with
that competitors might take advantage of global efficiency gains.
 In 2005 faced criticism because of large scale recall and quality issues.
 It was badly hit by 2008 financial crisis and declared its first annual loss in 70 years
history.
 In May 2009 they reported a record yearly net loss of $ 4.2 billion.
 It is criticized as foreign importer by Japanese cars producers.

Opportunities

 They continued global expansion especially in Emerging markets that is China, India and
Russia where population and demand is accelerating.
 state bank of India (SBI) decreased interest rate on automotive loans which is also an
opportunity for them.
 Toyota keeps on producing the new models of vehicles so attract each type segment of
population.
 With fuel price increasing every time they should produce hybrid gas electric vehicles
which are both fuel and environmental effective.
 Toyota produces fuel efficient, higher quality and smaller automobile that can attract
consumers.

Threats
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  People might be undermining the demand for large family.
 Appreciating of Japanese Yens against US dollar.
 Adverse impact of fluctuations in foreign currency conversion rates.
 Increasing Maintenance cost of vehicles, rising fuel price and changing customer
preference are challenging threats.
 Increased competition, force full marketing campaigns and raising competitive pressures.

TOYOTA GLOBAL VISION

“Toyota will lead the way to the future of mobility, enriching lives around the world with
the safe stand most responsible ways of moving people.

Through our commitment to quality, constant innovation and respect for the planet, we
aim to exceed expectations and be rewarded with a smile.

We will meet our challenging goals by engaging the talent and passion of people, who
believe there is always a better way.”

Vision :

Be a socially committed corporate through building vibrant communities in harmony

with nature, aiming to become the most admired company in india and meet customer
expectation and rewarded with smile

Step towards sustainability :

Social :

Contribute to the development of the society by:

 Imparting technical education

 Raising road safety awareness
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  Promoting art and culture
 Developing local communities through sustainable activities

Economic :

Developing a harmonious relationship with society by enhancing community

development activities and contributing to the progress of the region

Environment :

Undertaking measures to protect and safeguard the environment through effective eco
initiatives.

Business :

Complying with externally imposed social and environmental standards and conducting
our business operations with honesty and integrity.

Philosophy for sustainable CSR :

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 Plan:

CSR activities depends on:

 Analyzing the needs

 Feasibility study

Do:

Need-based implementation of prioritized activities

 In consensus with the local community

 Involving the stakeholders
 Sustaining the activity

Check:

Monitoring evaluation of the program by using effective implementation tools

Act:

Improvisation of the existing and plan for the new activities.

FOUNDER OF TOYOTA

Kiichiro Toyoda

Founder

a Japanese entrepreneur and the son of Toyoda Loom Works founder Sakichi Toyoda. His
decision to change Toyoda's focus from automatic loom manufacture into automobile
manufacturing created what would become Toyota Motor Corporation.
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BOARD OF DIRECTORS :

Akito Tachibana

Managing director

Mr. Akito Tachibana has been Managing Director and Director at Toyota Kirloskar Motor Pvt.
Ltd. since April 2016. Mr. Tachibana is a veteran at Toyota with nearly 30 of years of experience
and was Head of the technical, purchase, and quality assurance functions at TKM. In the past, he
has served Toyota in various roles in diverse geographies including Thailand, Vietnam, and the
US. He serves as Non-Executive Director of Toyota Financial Services India Limited.

Raju B. Ketkale

Senior Vice President and Director of Product Design

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Mr. Raju B. Ketkale, has been Senior Vice President and Director of Product Design &
Development and Quality Assurance at Toyota Kirloskar Motor Pvt. Ltd. since January 2018.
Mr. Ketkale has over two decades of automobile experience. Previously, Mr. Ketkale served as
Senior Vice President of Manufacturing in Toyota Kirloskar Motor

Hitoshi Iwanaga

Senior Vice-President

Hitoshi Iwanaga serves as Senior Vice-President of Toyota Kirloskar Motor Private Limited.

Mr. T. S. Jaishankar

Deputy Managing Director,

Mr. T. S. Jaishankar serves as a Deputy Managing Director of Commercial at Toyota Kirloskar

Motor Private Limited and served as an Executive Vice President.

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 TOYOTA PRODUCT & SPECIFICATION

1. TOYOTA FORTUNER

SPECIFICATION :

Price - Rs. 27.58 - 33.28 Lakh

The Toyota Fortuner has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel engine is
2755 cc while the Petrol engine is 2694 cc. It is available with the Manual and Automatic
transmission. Depending upon the variant and fuel type the Fortuner has a mileage of 10.01
to 15.04 kmpl. The Fortuner is a 7 seater SUV and has a length of 4795mm, width of
1855mm and a wheelbase of 2745m.

2. TOYOTA INNOVA CRYSTA

SPECIFICATION :
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Price - 14.83 - 23.24 Lakh

The Toyota Innova Crysta has 2 Diesel Engine and 1 Petrol Engine on offer. The Diesel
engine is 2393 cc and 2755 cc while the Petrol engine is 2694 cc. It is available with the
Manual and Automatic transmission. Depending upon the variant and fuel type the Innova
Crysta has a mileage of 10.75 to 13.68 kmpl. The Innova Crysta is a 7 seater MPV and has
a length of 4735mm, width of 1830mm and a wheelbase of 2750mm.

3. TOYOTA COROLLA ALTIS

SPECIFICATION :

Price - 16.45 - 20.19 Lakh

The Toyota Corolla Altis has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel
engine is 1364 cc while the Petrol engine is 1798 cc. It is available with the Manual and
Automatic transmission. Depending upon the variant and fuel type the Corolla Altis has a
mileage of 14.28 to 21.43 kmpl. The Corolla Altis is a 5 seater Sedan and has a length of
4620mm, width of 1775mm and a wheelbase of 2700mm.

4. NEW TOYOTA CAMRY (HYBRID)

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SPECIFICATION :

Price - 37.5 Lakh

The Toyota Camry has 1 Petrol Engine on offer. The Petrol engine is 2487 cc. It is available
with the Automatic transmission. Depending upon the variant and fuel type the Camry has a
mileage of 19.16 kmpl. The Camry is a 5 seater Sedan and has a length of 4885 mm, width
of 1840 mm and a wheelbase of 2825 mm.

5. TOYOTA ETIOS LIVA

SPECIFICATION :

Price - 5.58 - 7.78 Lakh

The Toyota Etios Liva has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel engine
is 1364 cc while the Petrol engine is 1197 cc. It is available with the Manual transmission.
Depending upon the variant and fuel type the Etios Liva has a mileage of 17.71 to 23.59
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kmpl. The Etios Liva is a 5 seater Hatchback and has a length of 3884mm, width of 1695
mm and a wheelbase of 2460mm.

6. TOYOTA PLATINUM ETIOS

SPECIFICATION :

Price - 6.9 - 9.13 Lakh

The Toyota Platinum Etios has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel
engine is 1364 cc while the Petrol engine is 1496 cc. It is available with the Manual
transmission. Depending upon the variant and fuel type the Platinum Etios has a mileage of
16.78 to 23.59 kmpl. The Platinum Etios is a 5 seater Sedan and has a length of 4369mm,
width of 1695mm and a wheelbase of 2550mm.

7. TOYOTA LAND CRUISER (IMPORTRD)

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 SPECIFICATION :

Price – 1.47 CR

The Toyota Land Cruiser has 1 Diesel Engine on offer. The Diesel engine is 4461 cc. It is
available with the Automatic transmission. Depending upon the variant and fuel type the
Land Cruiser has a mileage of 11.0 kmpl. The Land Cruiser is a 7 seater SUV and has a
length of 4950mm, width of 1980mm and a wheelbase of 2850mm.

8. TOYOTA PRIUS

9. TOYOTA LAND CRUISER PRADO

10. TOYOTA YARIS (NEW LAUNCHED)

As we see all above cars we can see Toyota is customer oriented automobile company. its
targeting all types of customers from middle class to upper class as per budget of the customer.

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 Toyota Production System

A production system that is steeped within the philosophy of "the complete elimination of all
waste" imbuing all aspects of production in pursuit of the foremost economical strategies.

Toyota Motor Corporation's vehicle production system is a manner of "making things" that's
generally said as a "lean producing system" or a "Just-in-Time (JIT) system," and has come back
to be well known and studied worldwide.

This production system has been established supported a few years of continuous enhancements,
with the target of "making the vehicles ordered by customers within the fastest and most
effective way, in order to deliver the vehicles as quickly as possible."

The Toyota Production System was established based on two concepts: The first is called
"jidoka" (which can be loosely translated as "automation with a human touch") which means that
when a retardant happens, the instrumentation stops at once, preventing defective product from
being produced; The second is that the thought of "Just-in-Time," within which every method
produces solely what's required by the next process in a continuous flow.

Based on the essential philosophies of jidoka and Just-in-Time, the TPS will with efficiency and
quickly manufacture vehicles of sound quality, one at a time, that totally satisfy client
necessities.

Harmonizing with the Environment

Globally, Toyota has indicated a strong and diverse commitment to the pursuit of
harmonious growth through its technically advanced and environment-friendly products. There
have been relentless efforts in the crucial fields of mobility, city transportation, resources, society
and environment, through research & development.

Protecting the environment has always been a priority at TKM, starting with the eco-
friendly engines that are manufactured for the Toyota vehicles, to the advanced technology that
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is used for purification or recycling of waste water at the plant. Apart from this, the plant at
Bidadi, Karnataka, is surrounded by a green belt, meets high environmental standards and has
achieved the ISO 14001 certification in its very first year of operations.

Setting benchmarks for Production Excellence

Quality is ensured in every vehicle that rolls out of Toyota Kirloskar Motor, through in-
built audits at every process of the system. The company's operational excellence is based on the
improvement tools and methods developed by Toyota under the Toyota Production System
(TPS), greatly emphasizing superlative quality and minimal waste.

In line with Toyota's growing comfort with its India operations, the company set up
Toyota Kirloskar Auto Parts (TKAP), which commenced production of transmissions in May
2004, for its global requirements. Another initiative is the Toyota Techno Park India (TTPI), a
non-profit industrial infrastructure company aimed at boosting local industries and related job
opportunities.

Setting benchmarks for the automobile industry, the manufacturing facility consists of 4
divisions (shops) – Press, Weld, Paint and Assembly.

Delivering Excellence

Toyota Production System (TPS) combines a balanced mix of human resources and robot
technology for increased productivity. This system involves two important principles:

Eco Factory: As part of our sustainable plant initiatives, the plant is designed with an Eco-
Factory concept to maximise the output with minimum input by creating a highly optimized
manufacturing process. From our energy efficient servo press to our state-of-the-art global body

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line, we are able to reduce process steps to further increase our energy efficiency. We also use
water borne paint and a water recycling system that recycles 40% waste water back into the
process, thereby leading to higher resource optimization and contributing towards a greener
society

Committed Partners

In our drive to build the perfect automobile, selecting the components that go in to it
becomes a key criterion for success. We at TKM believe that an innovative, capable and cost
competitive supplier base is critical to our viability.

We perceive suppliers and dealers as equal stakeholders in our drive towards

sustainability. Supplier enhancement initiatives are designed to bring a sense of partnership in all
our endeavors.

Social Contribution

Commitment to Society

As a responsible corporate citizen, Toyota Kirloskar Motor is constantly working

towards the development of people, communities, and the earth at large.

TKM's efforts over the years towards developing a prosperous society include rebuilding
a local residential school, construction of two water tanks in ruralBangalore that benefit around
80,000 people; reconstruction of a local police station; awareness on environmental conservation
for local schools; distribution of school materials like bags, books, computers, and chairs to
under-privileged students; and donation of funds towards rehabilitating the victims of the
Tsunami and the Gujarat earthquake.

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Ongoing initiatives:

TKM started the Toyota Safety Education Program (TSEP) - an interactive learning
programme designed to teach school children about road safety in the year 2007. It features
interactive courses, traffic booths, an animated film, computer and board games, and an
informative website.

The Toyota Technical Training Institute (TTTI) was started in the year 2007 to impart
technical know-how about automobiles, or Monozukuri (skilled manufacturing), to students who
have the talent, but not the means, to pursue higher studies. This residential school aims to
develop a sound knowledge base, individual skill sets, a strong body, and a positive attitude in
every student.

TKM in conjunction with Toyota Motor Corporation and its nationwide dealer network
has initiated a unique training initiative - The Toyota Technical Education Program (TTEP). The
special training module, launched in 2006, aims at enhancing the skill sets and employability of
the students at the ITIs in the country.

Conforming to its eco-commitment, Toyota, together with NDTV, conducted a host of

eco-initiatives that culminated in India's first 24-hour live TV programme - Greenathon. The
three-year nationwide environment campaign aims at creating awareness about issues that
threaten the future of our planet. With an overwhelming response from India's leading corporate
houses, top Bollywood stars, musicians, environmentalists, NGOs and educational institutions,
Greenstone Seasons I and II have been tremendously successful.

TPS Concept

Jidoka

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If equipment malfunction or a defective part is discovered, the affected machine automatically
stops, and operators cease production and correct the problem.

Jidoka means that a machine safely stops when the normal processing is completed. It also
means that, should a quality / equipment problem arise, the machine detects the problem on its
own and stops, preventing defective products from being produced. As a result, only products
satisfying quality standards will be passed on to the following processes on the production line.

Just-in-Time

"Just-in-Time" means making "only what is needed, when it is needed, and in the amount
needed." For example, to efficiently produce a large number of automobiles, which can consist
of around 30,000 parts, it is necessary to create a detailed production plan that includes parts
procurement. Supplying "what is needed, when it is needed, and in the amount needed"
according to this production plan can eliminate waste, inconsistencies, and unreasonable
requirements, resulting in improved productivity.

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 TOYOTA SERVICES
SERVICE

Express Maintenance:

 3 highly trained technician work simultaneously

 Quality check is an inherent part of each process
 Specially designed tools and equipment
 Watch your car being serviced
 Get your vehicle delivered in 60 minutes

Quick vehicle information:

 Unique e-CRB (evolutionary customer relationship building) tool based on to assure

faster response and resolution to all customer queries
 Watch live status of your vehicle being serviced
 Get service reminder, special offer and book appointments to on a call

QUICK onsite support:

Free 24x7 roadside assistance for 3 years for ,

 Out of fuel
 Wrong or contaminated fuels
 Lost or lock out key
 Tire related
 Battery related
 Onsite repairs
 Accident support

Toyota’s QUICK NETWORK REACH:

 Widespread network which is constantly growing

 Designed to enhance customer convenience and equipped with latest equipment’s
 Stop shop solution for all your need like finance , insurance, service, parts, lubricants,
tire, battery and car solutions under one roof

Toyota’s Qualified Manpower:

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  Recruited from best technical institutes supported by Toyota under Toyota technical
Education program initiative
 Toyota technicians are continuously groomed through Toyota Global Training System
 Toyota serviced adviser are trained to high Toyota standards and always assist you

Unmatched warranty:

 Best in class vehicle warranty [100,000 Km/ 3years]

 Warranty beings from date of sale of vehicle to the first customer
 Warranty covers for repairs or replacement of any Toyota found defective
 Contact service adviser of your Toyota dealership for warranty related support

Toyota’s Genuine parts:

Only Toyota Genuine Parts are designed and engineered specially for your Toyota Over the
years, heavy investments in R&D have been made to study the design, material selection &
internal construction of Toyota Genuine Parts. These parts are also tested under various
simulated extreme conditions to ensure Quality, Reliability & Durability. For peace of mind,
always insist on Toyota Genuine Parts.

All Toyota Genuine Parts carry a 6 month / 10,000 Km [whichever is earlier] Toyota Warranty*.
If a non-genuine part is fitted to your Toyota, and that part's failure damages your vehicle, then
that damage will not be covered by your Toyota Warranty. Also, when your car is serviced by a
Toyota Dealership, any warranty covered repairs identified will be carried out and are covered
under your Toyota Warranty.

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 TOYOTA ECONOMIC PERFORMANCE

The economic performance of a company is often considered as a measure of its success. We

regularly analyze our financial soundness and ensure we remain economically stable, to create
and share more value to all our stakeholders. Financial Year 2017-18 was a year of profits. ,
keeping ‘customer satisfaction’ as the focal point of business operations.

Financial Implications of Climate Change As climate change may cause environmental, social,
political and economic implications, it is important for businesses to recognize the need to adapt
and consider climate change implications in their business risk management. This will not only
aid the company’s competitiveness in the long run but may also present financial opportunities
through the process and product improvements. Hence, Have aligned with Toyota Global
Challenge 2050. The six challenges are directly and indirectly aligned with the Sustainable
Development Goals [SDGs]. Through this; aim to progress towards long-term goals by
developing environment best practices and abatement strategies to fight Climate Change in the
company and across value chain.

Investment In Renewable energy

Toyota india procuring green energy through various power trading platforms. As on 31st
March, 2018,64.8% of our total energy demand is met by green energy. And also installed a
5.2 MW solar power generation system in addition to the 3.2MW solar plant, to cater to
energy demands.

Toyota Environmental Management System

Environmental Management System acts as a backbone of all operations and focuses on reducing
environmental impact on the community and other entities. Toyota has established a
Consolidated Environmental Management System (EMS) at all its affiliates including TKM. The
Toyota EMS is designed to make Toyota an eco-friendly company and EMS acts a foundation
for reducing the environmental impact .

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The Toyota EMS concept is based on three key pillars

 Ensuring compliance & No complaints

 Minimizing Environmental risk
 Achieving best Environmental performance

Resource Conservation

Water

a) Rain water harvesting pond

As a responsible corporate, TKM has been continuously working towards reducing fresh water
consumption in its operation. Membrane Bioreactor & Reverse Osmosis technologies are set up
at both the manufacturing plants for recycling and reuse of wastewater. 60% of total recycled
water is used back in the production.

b) Rain water harvesting pond

TKM receives about 331262 m3 of fresh water from KIADB every year. This water is utilized
for both domestic and industrial purposes. In line with the philosophy "Zero Discharge", TKM
34
has been promoting activities to reduce water consumption at the source. It is achieved through 2
distinct strategies.

 Optimization of consumption through kaizen

 Installation of high end technologies for recycle & reuse

The fine CETP treated water quality is enhanced after the installation of MBR and RO that has in
turn improved the quality and quantity of the recycled waste water. All the waste water is treated
and utilized in the plant (Gardening & Afforestation, Domestic- Car wash, flushing, Industrial).
The company also proactively promotes re-use and optimal use of water.

Steel

Steel is an essential raw material for the passenger car automobile industry as it constitutes up to
23 percent of the weight of the final finished product. Steel consumption has an impact on both
the business operations and environment as it involves large CO2 emissions throughout its life
cycle, right from mining to its scrapping & re-utilization.

The objective of reducing steel wastage is to maximize the yield as well as reduce the carbon
footprint. We have been driving initiatives for "Steel Yield Improvement" under 3 Tier concepts.
With the result of potential Kaizens identification and implementation by the previously
established special task force, we could further improve the steel yield ratio compared to the
previous years.

35
 FINANCIAL STUDY

The study of financial statement is prepared for the purpose of presenting a periodical review or
report by the management of and deal with the state of investment in business and result
achieved during the period under review. They reflect the financial position and operating
strengths or weaknesses of the concern by properly establishing relationship between the items
of the balance sheet and remove statements.

Financial statement analysis can be under taken either by the management of the firm or
by the outside parties. The nature of analysis defers depending upon the purpose of the analysis.
The analyst is able to say how well the firm could utilize the resource of the society in generating
goods and services. Turnover ratios are the best tools in deciding these aspects.

Hence it is overall responsibility of the management to see that the resource of the firm is
used most efficiently and effectively and that the firm’s financial position is good. Financial
statement analysis does indicate what can be expected in future from the firm.

Meaning of Financial Statement

Financial statements refer to such statements which contains financial information about an
enterprise. They report profitability and the financial position of the business at the end of
accounting period. The team financial statement includes at least two statements which the
accountant prepares at the end of an accounting period. The two statements are: -

 The Balance Sheet

 Profit And Loss Account

36
They provide some extremely useful information to the extent that balance Sheet mirrors the
financial position on a particular date in terms of the structure of assets, liabilities and owners
equity, and so on and the Profit and Loss account shows the results of operations during a certain
period of time in terms of the revenues obtained and the cost incurred during the year. Thus the
financial statement provides a summarized view of financial position and operations of a firm

Meaning of Financial Analysis

The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is to
arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process of
selection, relation and evaluation.

Features of Financial Analysis

 To present a complex data contained in the financial statement in simple and

understandable form.
 To classify the items contained in the financial statement inconvenient and rational
groups.

 To make comparison between various groups to draw various conclusions.

Purpose of Analysis of financial statements

 To know the earning capacity or profitability.

 To know the solvency.
 To know the financial strengths.
 To know the capability of payment of interest & dividends.
 To make comparative study with other firms.
 To know the trend of business.
 To know the efficiency of mgt.
 To provide useful information to mgt

37
Procedure of Financial Statement Analysis

 The following procedure is adopted for the analysis and interpretation of financial
statements:-
 The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the managements that he may be able to find out
whether these plans are properly executed or not.
 The extent of analysis should be determined so that the sphere of work may be decided.
If the aim is find out. Earning capacity of the enterprise then analysis of income statement
will be undertaken. On the other hand, if financial position is to be studied then balance
sheet analysis will be necessary.
 The financial data be given in statement should be recognized and rearranged. It will
involve the grouping similar data under same heads. Breaking down of individual
components of statement according to nature. The data is reduced to a standard form. A
relationship is established among financial statements with the help of tools & techniques
of analysis such as ratios, trends, common size, fund flow etc.
 The information is interpreted in a simple and understandable way. The significance and
utility of financial data is explained for help indecision making.
 The conclusions drawn from interpretation are presented to the management in the form
of reports.

Analyzing financial statements involves evaluating three characteristics of a company: its

liquidity, its profitability, and its insolvency. A short-term creditor, such as a bank, is primarily
interested in the ability of the borrower to pay obligations when they come due. The liquidity of
the borrower is extremely important in evaluating the safety of a loan. A long-term creditor, such
as a bondholder, however, looks to profitability and solvency measures that indicate the
company’s ability to survive over a long period of time. Long-term creditors consider such
measures as the amount of debt in the company’s capital structure and its ability to meet interest
payments. Similarly, stockholders are interested in the profitability and solvency of the company.
They want to assess the likelihood of dividends and the growth potential of the stock. Comparison
can be made on a number of different bases.

38
 BALNCE SHEET

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 18 Mar 17 Mar 16 Mar 15 Mar 14

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 9.71 9.71 9.71 9.71 9.71
Total Share Capital 9.71 9.71 9.71 9.71 9.71
Reserves and Surplus 916.72 874.60 799.35 750.48 702.80
Total Reserves and Surplus 916.72 874.60 799.35 750.48 702.80
Total Shareholders Funds 926.43 884.31 809.06 760.19 712.51
Minority Interest 287.65 282.85 238.98 221.01 216.87
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 10.00 60.23
Deferred Tax Liabilities [Net] 83.53 82.03 80.17 74.35 64.18
Other Long Term Liabilities 0.23 15.86 15.87 0.45 11.12
Long Term Provisions 4.26 3.59 0.51 0.72 0.47
Total Non-Current Liabilities 88.02 101.48 96.55 85.52 136.00
CURRENT LIABILITIES
Short Term Borrowings 72.39 96.88 98.24 72.50 94.16
Trade Payables 358.06 163.90 136.83 201.71 247.67
Other Current Liabilities 108.91 45.42 48.25 103.22 76.92
Short Term Provisions 3.88 3.53 4.54 37.34 19.69
Total Current Liabilities 543.23 309.73 287.86 414.77 438.44
Total Capital And Liabilities 1,845.33 1,578.37 1,432.44 1,481.49 1,503.81
ASSETS
NON-CURRENT ASSETS
Tangible Assets 588.82 576.67 551.83 545.10 551.99
Intangible Assets 3.97 4.18 4.16 3.19 1.39
Capital Work-In-Progress 75.68 19.06 8.08 30.43 22.74
Intangible Assets Under
0.00 0.00 0.00 0.82 0.00
Development
Fixed Assets 668.47 599.92 564.07 579.53 576.11
Non-Current Investments 521.32 511.13 511.45 422.29 422.91
Long Term Loans And
38.78 29.12 36.56 36.69 37.51
Advances
Other Non-Current Assets 0.23 0.77 2.05 1.85 0.09
Total Non-Current Assets 1,228.80 1,140.94 1,114.14 1,040.36 1,036.63

39
CURRENT ASSETS
Current Investments 44.23 0.00 0.00 0.00 0.00
Inventories 217.19 121.88 93.00 118.35 162.31
Trade Receivables 292.03 197.73 139.90 176.50 190.28
Cash And Cash Equivalents 30.40 84.00 49.87 119.93 77.38
Short Term Loans And
26.16 26.18 28.25 18.66 28.98
Advances
OtherCurrentAssets 6.51 7.65 7.28 7.69 8.24
Total Current Assets 616.53 437.44 318.31 441.13 467.19
Total Assets 1,845.33 1,578.37 1,432.44 1,481.49 1,503.81
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 158.75 65.53 89.91 56.85 49.53
BONUS DETAILS
Bonus Equity Share Capital 4.85 4.85 4.85 4.85 4.85
NON-CURRENT INVESTMENTS
Non-Current Investments
1,377.22 1,263.68 657.00 756.80 618.83
Quoted Market Value
Non-Current Investments
0.01 0.01 0.09 0.09 0.09
Unquoted Book Value
CURRENT INVESTMENTS
Current Investments Unquoted
44.23 0.00 0.00 0.00 0.00
Book Value

40
 PROFIT & LOSS ACCOUNT

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 18 Mar 17 Mar 16 Mar 15 Mar 14

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations
1,629.31 1,274.74 1,257.46 1,531.47 1,382.86
[Gross]
Less: Excise/Sevice Tax/Other
43.26 144.11 146.78 173.44 157.96
Levies
Revenue From Operations [Net] 1,586.06 1,130.63 1,110.68 1,358.04 1,224.90
Other Operating Revenues 104.97 6.61 8.00 10.45 14.06
Total Operating Revenues 1,691.03 1,137.24 1,118.68 1,368.48 1,238.96
Other Income 70.67 49.94 56.50 53.32 51.18
Total Revenue 1,761.70 1,187.18 1,175.18 1,421.81 1,290.14
EXPENSES
Cost Of Materials Consumed 1,044.41 601.54 581.96 826.69 786.18
Purchase Of Stock-In Trade 59.86 0.00 0.00 0.00 0.00
Operating And Direct Expenses 337.81 256.50 261.28 286.71 251.03
Changes In Inventories Of
0.25 -14.82 10.44 -3.06 10.06
FG,WIP And Stock-In Trade
Employee Benefit Expenses 91.43 74.62 72.02 66.26 50.46
Finance Costs 11.62 13.66 23.83 29.80 14.30
Depreciation And Amortisation
51.11 46.88 45.25 51.34 36.85
Expenses
Other Expenses 65.26 49.89 44.44 46.75 38.02
Total Expenses 1,661.75 1,028.26 1,039.23 1,304.50 1,186.91
Profit/Loss Before Exceptional,
99.95 158.92 135.95 117.31 103.23
ExtraOrdinary Items And Tax
Profit/Loss Before Tax 99.95 158.92 135.95 117.31 103.23
Tax Expenses-Continued Operations
Current Tax 21.46 41.90 29.80 23.13 19.56
Less: MAT Credit Entitlement 0.53 1.22 0.00 1.58 6.54
Deferred Tax 1.49 1.87 5.82 10.18 12.70
Tax For Earlier Years -0.46 -3.01 0.00 0.00 -0.17
Total Tax Expenses 21.96 39.53 35.62 31.73 25.55
Profit/Loss After Tax And Before
77.98 119.39 100.33 85.58 77.68
ExtraOrdinary Items
Profit/Loss From Continuing
77.98 119.39 100.33 85.58 77.68
Operations

41
Profit/Loss For The Period 77.98 119.39 100.33 85.58 77.68
Minority Interest -18.14 -43.97 -28.04 -23.93 -19.35
Share Of Profit/Loss Of
0.00 -0.02 0.00 0.00 0.00
Associates
Consolidated Profit/Loss After
59.84 75.40 72.29 61.65 58.33
MI And Associates
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 62.00 78.00 74.00 63.00 60.00
Diluted EPS (Rs.) 62.00 78.00 74.00 63.00 60.00
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 19.42 0.00 19.42 19.42 12.22
Tax On Dividend 3.95 0.00 4.00 3.95 2.92

42
 CASH FLOW STATEMENT

Cash Flow ------------------- in Rs. Cr. -------------------

Mar 18 Mar 17 Mar 16 Mar 15 Mar 14

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before

58.84 37.46 68.38 54.29 54.08
Extraordinary Items And Tax
Net CashFlow From Operating
-21.58 -15.63 -12.91 -5.39 -12.96
Activities
Net Cash Used In Investing
39.05 18.94 56.10 9.69 11.11
Activities
Net Cash Used From Financing
-20.74 -0.56 -42.70 -4.09 -4.12
Activities
Net Inc/Dec In Cash And Cash
-3.27 2.75 0.50 0.21 -5.97
Equivalents
Cash And Cash Equivalents Begin
4.43 1.68 1.18 0.98 6.95
of Year
Cash And Cash Equivalents End
1.16 4.43 1.68 1.18 0.98
Of Year

43
 FINANCIAL RATIO

Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 94.76 174.60 153.00 149.48 106.31
Net Operating Profit Per Share
1,741.77 1,171.37 1,152.26 1,409.55 1,276.15
(Rs)
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 49.99 49.99 49.99 49.99 49.99
Profitability Ratios
Operating Profit Margin(%) 5.44 14.90 13.27 10.60 8.33
Profit Before Interest And Tax
2.32 10.33 8.78 6.59 5.14
Margin(%)
Gross Profit Margin(%) 2.41 10.78 9.23 6.85 5.35
Cash Profit Margin(%) 7.32 14.00 12.38 9.63 8.87
Adjusted Cash Margin(%) 7.32 14.00 12.38 9.63 8.87
Net Profit Margin(%) 3.53 6.63 6.46 4.50 4.70
Adjusted Net Profit Margin(%) 3.39 6.35 6.15 4.33 4.52
Return On Capital Employed(%) 11.16 17.58 17.61 17.45 13.55
Return On Net Worth(%) 6.45 8.52 8.93 8.10 8.18
Adjusted Return on Net
8.41 13.50 12.40 11.25 10.90
Worth(%)
Return on Assets Excluding
1,250.51 1,202.19 833.34 783.00 733.89
Revaluations
Return on Assets Including
1,250.51 1,202.19 833.34 783.00 733.89
Revaluations
Return on Long Term Funds(%) 12.04 19.51 19.74 19.09 15.21
Liquidity And Solvency Ratios
Current Ratio 0.88 0.99 0.77 0.85 0.84
Quick Ratio 0.71 1.10 0.92 0.86 0.82
Debt Equity Ratio 0.08 0.11 0.12 0.11 0.22
Long Term Debt Equity Ratio -- -- -- 0.01 0.08
Debt Coverage Ratios
Interest Cover 9.60 12.64 6.70 4.94 8.22
Total Debt to Owners Fund 0.08 0.11 0.12 0.11 0.22
Financial Charges Coverage 14.00 16.07 8.60 6.66 10.79

44
Ratio
Financial Charges Coverage
10.55 9.95 5.93 4.79 7.65
Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio 7.98 10.51 13.61 13.03 8.61
Debtors Turnover Ratio 6.91 6.74 7.07 7.46 --
Investments Turnover Ratio 7.98 10.51 13.61 13.03 8.61
Fixed Assets Turnover Ratio 1.61 1.13 1.17 1.51 1.43
Total Assets Turnover Ratio 1.32 0.90 0.98 1.29 1.14
Asset Turnover Ratio 1.33 0.94 1.01 1.27 --

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --
Number of Days In Working
27.89 72.71 46.17 33.76 41.39
Capital
Profit & Loss Account Ratios
Material Cost Composition 74.52 63.74 62.81 71.12 73.58
Imported Composition of Raw
-- -- -- -- --
Materials Consumed
Selling Distribution Cost
-- -- -- -- --
Composition
Expenses as Composition of
-- -- -- -- --
Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 39.05 -- 32.39 37.90 25.94
Dividend Payout Ratio Cash
21.06 -- 19.92 20.68 15.90
Profit
Earning Retention Ratio 70.04 100.00 76.66 72.70 80.52
Cash Earning Retention Ratio 81.90 100.00 83.92 82.94 86.79
AdjustedCash Flow Times 0.56 0.58 0.67 0.60 1.35

45
 FINANCIAL RATIOS

Ratio analysis:-

Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key areas. The ratios are categorized as
Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability
Ratios, and Market Value Ratios.

Ratio Analysis as a tool possesses several important features. The data, which are
provided by financial statements, are readily available. The computation of ratios facilitates the
comparison of firms which differ in size. Ratios can be used to compare a firm's financial
performance with industry averages. In addition, ratios can be used in a form of trend analysis to
identify areas where performance has improved or deteriorated over time.

Because Ratio Analysis is based upon Accounting information, its effectiveness is limited
by the distortions which arise in financial statements due to such things as Historical Cost
Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in
financial analysis, to obtain a quick indication of a firm's performance and to identify areas
which need to be investigated further

Classification of financial ratios on the basis of function:

On the basis of function or test, the ratios are classified as liquidity ratios, profitability ratios,
activity ratios and solvency ratios

46
Liquidity Ratios:

Liquidity ratios measure the adequacy of current and liquid assets and help evaluate the
ability of the business to pay its short-term debts. The ability of a business to pay its short-term
debts is frequently referred to as short-term solvency position or liquidity position of the
business.

a) Profitability ratios:

Profitability ratios measure the efficiency of management in the employment of

business resources to earn profits. These ratios indicate the success or failure of a business
enterprise for a particular period of time

b)Activity ratios:

Activity ratios (also known as turnover ratios) measure the efficiency of a firm or
company in generating revenues by converting its production into cash or sales. Generally a fast
conversion increases revenues and profits.

c) Solvency ratios:

Solvency ratios (also known as long-term solvency ratios) measure the ability of a
business to survive for a long period of time. These ratios are very important for stockholders
and creditors.

OBJECTIVES:-

47
 The importance of ratio analysis lies in the fact that it presents data on a comparative
basis and enables the drawing of inferences regarding the performance of the firm. Ratio analysis
helps in concluding the following aspects:

a) Liquidity Position:

Ratio analysis helps in determining the liquidity position of the firm. A firm can be said
to have the ability to meet its current obligations when they become due. It is measured with the
help of liquidity ratios.

b) Long- Term Solvency:

Ratio analysis helps in assessing the long term financial viability of a firm. Long- term
solvency measured by leverage/capital structure and profitability ratios.

c) Operating Efficiency:

Ratio analysis determines the degree of efficiency of management and utilization of

assets. It is measured by the activity ratios.

d) Over-All Profitability:

The management of the firm is concerned about the overall profitability of the firm which
ensures a reasonable return to its owners and optimum utilization of its assets. This is
possible if an integrated view is taken and all the ratios are considered together.

48
GROSS PROFIT RATIO:-

Gross profit ratio is a profitability ratio that shows relationship between gross profit and total net
sales revenue. It is a popular tool to evaluate the operational performance of the business. When gross profit
ratio is expressed in percentage form, it is known as gross profit margin or gross profit percentage. The
basic components of the formula of gross profit ratio are gross profit and sales.

FORMULA:-

YEAR 2018 2017 2016 2015 2014

G.P RATIO(%)
2.41 10.78 9.23 6.85 5.35

INTERPRETATION:-

There is a fluctuation in the gross profit ratio. The percentage of gross profit over sales is gradually
increasing till 2017 and after which it is decline to 2.41.Thus it show an decreasing trend from 2017
onwards. It is also apparent that the GP ratio is decreasing about 8.37% from 2017-2018(10.78%-2.41%)
Hence it major stimulated that between 2017 and 2018 there may be an decrease in GP ratio of at least
8.37%.

12

10

8 2018
2017
6
2016
4 2015
2014
2

0
G.P RATIO

49
PROFIT RATIO:-

Net profit ratio is a popular profitability ratio that shows relationship between net profit after tax and
net sales. It is computed by dividing the net profit (after tax) by net sales. The relationship between net profit
and net sales may also be expressed in percentage form. When it is shown in percentage form, it is known as
net profit margin.

FORMULA:-

YEAR 2018 2017 2016 2015 2014

NET PROFIT
MARGIN(%) 3.53 6.63 6.46 4.50 4.70

5
2018
4
2017
3 2016
2 2015
2014
1

0
NET PROFIT MARGIN RATIO

50
INTERPRETATION:-

The Net Profit Ratio was 4.70% in 2014 which decreased slightly to 4.50% in 2015.There is a
increase in Net profit Ration again in 2016 to 6.46%. However, there is a increase of almost 1.96% in
Net Profit Ration between 2016-2017 when it was 6.63%. Similarly there is an decrease of 3.1% again
for the next consecutive year in 2018 where the Net Profit Ration was 3.53%

CURRENT RATIO:-

The current ratio is a financial ratio that measures whether or not a firm has enough resources to
pay its debts over the next 12 months. It compares a firm's current asset to its current liabilities. The
current ratio is an indication of a firm's market liquidity and ability to meet creditor's demands.

FORMULA:-

YEAR 2018 2017 2016 2015 2014

CURRENT
0.88 0.99 0.77 0.85 0.84
RATIO

51
 CURRENT RATIO

1.2

0.8 2018
2017
0.6
2016

0.4 2015
2014
0.2

0
CURRENT RATIO

INTERPETATION :

There is a fluctuation in the current ratio from 0.84 in 2014 to 0.85 in 2015 to a decrease in 2016
to 0.77 and then an increase in 2017 to 0.99 and decrease again to 0.88 in 2018. but the current asset is
well enough to meet current liability.

LIQUID RATIO:-

In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its
near cash or quick assets to extinguish or retire its current liability immediately. Quick assets include
those current asset that presumably can be quickly converted to cash at close to their book value.

FORMULA:-

52
 YEAR 2018 2017 2016 2015 2014
QUICK RATIO
0.71 1.10 0.92 0.86 0.82

QUICK RATIO

1.2
1
2018
0.8
2017
0.6
2016
0.4
2015
0.2 2014
0
QUICK RATIO

INTERPRETATION :-

The liquid Asset ratio was 0.82 in 2014 which has shown a gradual increase to 0.86 % in 2015 to further increased
0.92% in 2016. Between 2016-2017 the Liquid Asset Ratio has increased by 1.10 % in the financial years. But its
has been declined in 2018.

INVENTORY TURNOVER RATIO:-

In accounting, the Inventory turnover is a measure of the number of times inventory is sold or used in a time
period such as a year. The equation for inventory turnover equals the Cost of goods sold divided by the
average inventory. Inventory turnover is also known as inventory turns, stock turn, stock turns, turns,
and stock turnover.

FORMULA:-

53
 YEAR 2018 2017 2016 2015 2014
INVENTORY
TURNOVER 7.98 10.51 13.61 13.03 8.61
RATIO

INVENTORY TURNOVER RATIO

16
14
12 2018
10
2017
8
2016
6
2015
4
2014
2
0
INVENTORY TURNOVER RATIO

INTERPRETATION :-

The Inventory Turn over Ratio increased from 8.61% in 2014 to 13.03% in 2015. However, it increased almost
by 0.58% to 13.61% in 2016 but again had a gradual decrease to 10.51% in 2017 to further decrease to 7.98%
in 2018.

54
DEBTORS TURNOVER RATIO :

YEAR 2018 2017 2016 2015 2014

DEBTOR
TURNOVER 6.91 6.74 7.07 7.46 --
RATIO

An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The
receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses it assets.

FORMULA :

DEBTOR TURNOVER RATIO

7.6
7.4
7.2
2018
7
2017
6.8
2016
6.6
2015
6.4
6.2
DEBTORS TURNOVER RATIO

INTERPRETATION :

The Debtors Turn Over Ration was 7.46% in 2015 which has decreased to 7.07% in 2016 but then it was
decreased drastically in 2017 to 6.74% but slowly is accelerating from 2018 on wards to 6.91 in 2017-18.
55
FIXED ASSET TURNOVER RATIO:-

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to generate
net sales from fixed-asset investments - specifically property, plant and equipment .

FORMULA :

YEAR 2018 2017 2016 2015 2014

FIXED ASSET
TURNOVER 1.61 1.13 1.17 1.51 1.43
RATIO

INTERPRETATION :

The fixed asset ratio was 1.43 % in 2014 which increased to 1.51% in 2015 and further
decreased to 1.17 in 2016 and then to 1.13% in 2017. The fixed asset has shown a increasing
trend in 2018 to 1.61% This is far more than what it has been since 2014.

FIXED ASSEST TURNOVER RATIO

56
 1.8
1.6
1.4
2018
1.2
1 2017
0.8 2016
0.6 2015
0.4
2014
0.2
0
FIXED ASSET TURNOVER RATIO

QUICK RATIO :-

The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to
meet its short-term obligations with its most liquid assets.

FORMULA :

YEAR 2018 2017 2016 2015 2014

QUICK RATIO 0.71 1.10 0.92 0.86 0.82

QUICK RATIO

57
 1.2

1
2018
0.8
2017
0.6
2016
0.4 2015
0.2 2014

0
QUICK RATIO

INTERPRETATION :

The quick ratio was 0.82% in 2014 which increased to 0.86% in 2015 and further increased to 0.92 in 2016 and
then to 1.10% in 2017. The fixed asset has shown a decreasing trend in 2018 to 0.71% This is far less than
what it has been since 2014.

58
 ASSEST TURNOVER RATIO :

Asset turnover ratio measures the value of a company's sales or revenues generated relative to
the value of its assets.

FORMULA :

YEAR 2018 2017 2016 2015 2014

ASSET
TURNOVER 1.33 0.94 1.01 1.27 --
RATIO

ASSETS TURNOVER RATIO

1.4
1.2
1
2018
0.8
2017
0.6
2016
0.4
2015
0.2
0
ASSETS TURNOVER RATIO

INTERPRETATION :

The assets turnover ratio was to 1.27% in 2015 and further decreased to 1.01 in 2016 and then to
0.94% in 2017. The fixed asset has shown a decreasing trend in 2018 to 1.33% This is far more
than what it has been since 2015.
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 Return On Net Worth :

The net worth ratio states the return that shareholders could receive on their investment in a
company, if all of the profit earned were to be passed through directly to them. Thus, the ratio is
developed from the perspective of the shareholder, not the company, and is used to analyze
investor returns..

YEAR 2018 2017 2016 2015 2014

RETURN ON
6.45 8.52 8.93 8.10 8.18
NET WORTH

RETURN ON NET WORTH

10
9
8
7 2018
6 2017
5
2016
4
3 2015
2 2014
1
0
RETURN ON NET WORTH

INTERPRETATION :

The return on net worth was 8.18 % in 2014 which decreased to 8.10% in 2015 and further
increased to 8.92 in 2016 and then to 8.52% in 2017. The return on net worth has shown a
decreasing trend in 2018 to 6.45% This is far less than what it has been since 2014.

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 Return On Capital Employed :

Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It
is a useful measure for comparing the relative profitability of companies after taking into account
the amount of capital used.

YEAR 2018 2017 2016 2015 2014

RETURN ON
CAPITAL 11.16 17.58 17.61 17.45 13.55
EMPLOYED

RETURN ON CAPITAL EMPLOYED

20
18
16
14 2018
12 2017
10
2016
8
6 2015
4 2014
2
0
RETURN ON CAPITAL EMPLOYED

INTERPRETATION :

The return was 13.55 % in 2014 which increased to 17.45% in 2015 and further increased to
17.61 in 2016 and then to 17.58% in 2017. The return on net worth has shown a decreasing trend
in 2018 to 11.16% This is far less than what it has been since 2014.

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 INTEREST COVER RATIO :

The interest coverage ratio is used to determine how easily a company can pay their interest
expenses on outstanding debt. The ratio is calculated by dividing a company's earnings before
interest and taxes (EBIT) by the company's interest expenses for the same period.

FORMULA :

YEAR 2018 2017 2016 2015 2014

INTEREST
COVERAGE 9.60 12.64 6.70 4.94 8.22
RATIO

INTEREST COVERAGE RATIO

14
12
10 2018
8 2017

6 2016

4 2015

2 2014

0
INTEREST COVERAGE RATIO

INTERPRETATION :

The Interest cover Ratio was 8.22% in 2014 which decreased slightly to 4.94% in 2015.There is
a increase in Ration again in 2016 to 6.70%. Ration between 2016-2017 when it was 12.64%.
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 Similarly there is an decrease of again for the next consecutive year in 2018 where the Net Profit
Ration was 9.60%.

Dividend Payout Ratio Cash Profit :

The dividend payout ratio is the amount of dividends paid to stockholders relative to the amount
of total net income of a company. The amount that is not paid out individual to stockholders is
held by the company for growth. The amount that is kept by the company is called
retained earnings.

FORMULA :

YEAR 2018 2017 2016 2015 2014

DIVIDEND
PAYOUT 21.06 -- 19.92 20.68 15.90
RATIO

INTERPRETATION :

The Dividend payout ratio was to 15.90% in 2014 and further increased to 20.68 in 2015 and
then to 19.92% in 2016. The dividend payout has shown a increasing trend in 2018 to 21.06%
This is far more than what it has been since 2014.

DIVIDEND PAYOUT RATIO CASH PROFIT

63
 25
20 2018
15 2017

10 2016

5 2015

0 2014
DIVIDEND PAYOUTCASH RATIO

Working capital :

Definitions

The cash available for day-to-day operations of an organization is called working

capital. Strictly speaking, one borrows cash (and not working capital) to be able to buy assets or
to pay for obligations. This is also called current capital.

Accounting:

Net liquid assets computed by deducting current liabilities from current assets. The
amount of available working capital is a measure of a firm's ability to meet its short-term

FORMULA:-

Working Capital = Current Assets − Current Liabilities

RATIOS:-
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 YEAR 2018 2017 2016 2015 2014
WORKING
73.3 127.71 30.45 26.36 28.75
CAPITAL

WORKING CAPITAL

140
120
100 2018
80 2017

60 2016

40 2015

20 2014

0
working capital

INTERPRETATION:

The working capital in the year 2015 has decreased as compare to 2014 .2016 there is
an increase in the working capital ratio from 26.36 to 30.45 and 127.71 in 2017.which shows
that the company has gained working capital in the year 2017 as it was declined in 2018 to 73.3

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Capital Structure
Period Instrument Authorized Issued Capital -PAIDUP-
Capital
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2017 2018 Equity Share 50 9.71 9708650 10 9.71
2016 2017 Equity Share 50 9.71 9708650 10 9.71
2015 2016 Equity Share 50 9.71 9708619 10 9.71
2014 2015 Equity Share 50 9.71 9708619 10 9.71
2013 2014 Equity Share 50 9.71 9708619 10 9.71
2012 2013 Equity Share 50 9.71 9708619 10 9.71
2011 2012 Equity Share 50 9.71 9708619 10 9.71
2010 2012 Equity Share 50 9.71 9708619 10 9.71
2010 2011 Equity Share 50 9.71 9708650 10 9.71
2009 2010 Equity Share 50 9.71 9708619 10 9.71
2008 2009 Equity Share 50 39.07 194172380 2 38.83
2007 2008 Equity Share 50 39.07 194172380 2 38.83
2006 2007 Equity Share 110 19.65 97086190 2 19.42
2005 2006 Equity Share 22 19.65 97086500 2 19.42
2004 2005 Equity Share 22 19.65 19417238 10 19.42
2003 2004 Equity Share 22 19.65 19417238 10 19.42
2002 2003 Equity Share 22 19.4 19163548 10 19.16
2001 2002 Equity Share 22 19.4 19163548 10 19.16
2000 2001 Equity Share 22 19.4 19163548 10 19.16
1999 2000 Equity Share 22 19.4 19163548 10 19.16
1997 1999 Equity Share 22 19.25 19016362 10 19.02
1996 1997 Equity Share 22 17.22 17216644 10 17.22
1995 1996 Equity Share 22 0.58 584250 10 0.58
1994 1995 Equity Share 4.5 0.11 109170 10 0.11
1993 1994 Equity Share 4.5 2.18 2183200 10 2.18

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 FINDINGS

There is a fluctuation in the gross profit ratio. The percentage of gross profit over sales is
gradually increasing till 2017 and after which it is decline to 2.41.Thus it show an decreasing
trend from 2017 onwards. It is also apparent that the GP ratio is decreasing about 8.37% from
2017-2018(10.78%-2.41%) Hence it major stimulated that between 2017 and 2018 there may be
an decrease in GP ratio of at least 8.37%.

The Net Profit Ratio was 4.70% in 2014 which decreased slightly to 4.50% in 2015.There is a
increase in Net profit Ration again in 2016 to 6.46%. However, there is a increase of almost
1.96% in Net Profit Ration between 2016-2017 when it was 6.63%. Similarly there is an
decrease of 3.1% again for the next consecutive year in 2018 where the Net Profit Ration was
3.53%

There is a fluctuation in the current ratio from 0.84 in 2014 to 0.85 in 2015 to a decrease in 2016
to 0.77 and then an increase in 2017 to 0.99 and decrease again to 0.88 in 2018. but the current
asset is well enough to meet current liability.

The liquid Asset ratio was 0.82 in 2014 which has shown a gradual increase to 0.86 % in 2015 to
further increased to 0.92% in 2016. Between 2016-2017 the Liquid Asset Ratio has increased by
1.10 % in the financial years. But its has been declined in 2018.

The Inventory Turn over Ratio increased from 8.61% in 2014 to 13.03% in 2015. However, it
increased almost by 0.58% to 13.61% in 2016 but again had a gradual decrease to 10.51% in
2017 to further decrease to 7.98% in 2018.

The Debtors Turn Over Ration was 7.46% in 2015 which has decreased to 7.07% in 2016 but
then it was decreased drastically in 2017 to 6.74% but slowly is accelerating from 2018 on wards
to 6.91 in 2017-18.

The fixed asset ratio was 1.43 % in 2014 which increased to 1.51% in 2015 and further
decreased to 1.17 in 2016 and then to 1.13% in 2017. The fixed asset has shown a increasing
trend in 2018 to 1.61% This is far more than what it has been since 2014.

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The quick ratio was 0.82% in 2014 which increased to 0.86% in 2015 and further increased to
0.92 in 2016 and then to 1.10% in 2017. The fixed asset has shown a decreasing trend in 2018 to
0.71% This is far less than what it has been since 2014

The assets turnover ratio was to 1.27% in 2015 and further decreased to 1.01 in 2016 and then to
0.94% in 2017. The fixed asset has shown a decreasing trend in 2018 to 1.33% This is far more
than what it has been since 2015.

The return on net worth was 8.18 % in 2014 which decreased to 8.10% in 2015 and further
increased to 8.92 in 2016 and then to 8.52% in 2017. The return on net worth has shown a
decreasing trend in 2018 to 6.45% This is far less than what it has been since 2014.
The return was 13.55 % in 2014 which increased to 17.45% in 2015 and further increased to
17.61 in 2016 and then to 17.58% in 2017. The return on net worth has shown a decreasing trend
in 2018 to 11.16% This is far less than what it has been since 2014

The Interest cover Ratio was 8.22% in 2014 which decreased slightly to 4.94% in 2015.There is
a increase in Ration again in 2016 to 6.70%. Ration between 2016-2017 when it was 12.64%.
Similarly there is an decrease of again for the next consecutive year in 2018 where the Net Profit
Ration was 9.60%.

The Dividend payout ratio was to 15.90% in 2014 and further increased to 20.68 in 2015 and
then to 19.92% in 2016. The dividend payout has shown a increasing trend in 2018 to 21.06%
This is far more than what it has been since 2014.

The working capital in the year 2015 has decreased as compare to 2014 .2016 there is an increase
in the working capital ratio from 26.36 to 30.45 and 127.71 in 2017.which shows that the
company has gained working capital in the year 2017 as it was declined in 2018 to 73.3

68
 SUGGESTIONS

1) Toyota should continue to undertake concerted efforts to strengthen its management

platform and raise corporate value.

2) Toyota should accelerate its business expansion into rapidly growing emerging countries by
thoroughly and meticulously monitoring market conditions in respective regions and
introducing products suited to the characteristics and needs of each market. Toyota should also
strive to establish production and supply structures to realize optimum product pricing and
delivery, and to enhance the value chain to provide a wide range of customer services in each
country and region.

3) Toyota should pursue the development of environmentally conscious, energy-saving

products while incorporating functions and services demanded by customers (value chain) and
delivering them to the global market. Acting on these measures, Toyota should aim for growth
in three business units, namely, “solutions” in the areas of materials handling equipment,
logistics and textile machinery; “key components” in the fields of car air-conditioning
compressors and car electronics; and “mobility” in the domains of vehicles and engines.

4) To support consolidated management on a global scale, Toyota should enhance the power
of the workplace and diversity in the use of human resources, and strive to nurture global
human resources
5) In addition to placing top priority on safety, Toyota should thoroughly enforce
compliance, including observance of laws and regulations, and actively participate in social
contribution activities.

6) Toyota should aim to support industries and social infrastructures around the world
by continuously supplying products and services that anticipate customers’ needs in
order to contribute to engendering a compassionate society.

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 CONCULSION

Study of ratio analysis of Toyota reveals the financial performance of the company. It is
found from analysis of the five financial years from 2014 to 2018, the company’s Gross Profit
has increased in 2014-17 and so is the Net Profit. The Current Ratio is also increasing since
2017-18 and 2017 and that the current assets are more than sufficient to meet the current
liability. Hence the company needs to improve its liquidity position. The Inventory Turnover
Ratio decreased from which means that stock is sold out or utilized by the company. However, it
increased almost by 13.61% in 2016 where there may have been less sales and stock increase,
but again had a gradual decrease to 10.51% in 2017 to further decrease to 7.98% in 2018 which
shows very clearly that Toyota is increasing its sales and thus reducing its stock which is a very
positive trend for the company. Since both the Debtors turnover ratio and the Creditor turnover
ratio is both showing the same trend of from increased trend to an decreased trend, it clearly
implies that the company is making sales but at the same time the companies burrowing is also
increasing. The positive side of the finance of Toyota is that since the sale is going up, the
company is in a position to repay it loans and borrowings comfortably.

The very clear indicator that the company is on the positive trend is its fixed asset ratio.
In Toyota, the fixed assets are increasing which means that the company is buying raw materials
and assets required for the growth. There is money available and hence the company is able to
increase it fixed assets and through this the company can increase its overall financial position.

70
 BIBLIOGRAPHY

Source of information where from data collected :

1) www.toyota-global.com
2) www.moneycontrol.com
3) www.toyotabharat.com
4) www.wikipedia.org
5) www.reuters.com

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