Project

STUDY OF AUDIT AND REPORT OF STANDARD AUTO AGENCIES
SHRI RAM INSTITUTE OF MANAGEMENT JABALPUR

(M.P.)
CERTIFICATE
This is to certify that Mr. ADITYA VERMA MBA 3rd Sem

student of SHRI RAM INSTITUTE OF MANAGEMENT
entitled the project of “A STUDY OF AUDIT AND REPORT
OF STANDARD AUTO AGENCIES”. at STANDARD AUTO
AGENCY. Which is being submitted herewith for the practice
of Partial fulfillment of Masters in Business Administration
RDVV Jabalpur for the year 2018.
It has been duly completed as record of bonafide work in

practice of Finance, SRIM Jabalpur (M.P.)

(M.P.)
CERTIFICATE
This is to certify that the Project Report entitled “A STUDY OF

AUDIT AND REPORT OF STANDARD AUTO AGENCIES”
which is being submitted herewith for the award of the degree of
Masters in Business Administration, RDVV Jabalpur by ADITYA
VERMA (MBA 3rd.Sem) under my supervision and guidance.
DATE: (Guide)
PLACE: JABALPUR PROF. ATUL DUBEY


(M.P.)
DECLARATION
I ADITYA VERMA do hereby declare that the project entitled “A

STUDY OF AUDIT AND REPORT OF STANDARD AUTO AGENCY” is an
original work carried out by me under the guidance of PROF.ATUL
DUBEY in partial fulfillment of Master Of Business Administration
during academic year, All the data represented in this project is true
and correct to the best of my knowledge and belief. This work has not
been submitted for any other degree exam elsewhere.
PLACE : JABALPUR ADITYA VERMA
DATE:
ACKNOWLEDGEMENT
It gives me pleasure in expressing my heartfelt gratitude and
indebtedness for the kind blessing showered upon me by honorable
Chairman Mr. R. Karsoliya ShrI ram Group of Institutions of
Jabalpur (M.P.)
I would like to express my gratitude towards Principal Dr. Atul

Dubey (SRIM), Jabalpur for their kind cooperation and
encouragement which help me to completing the project.
I am highly indebted to PROF. ATUL DUBEY for his/her

guidance and constant supervision as well as for providing
necessary information regarding the project and also for support in
completing the project.
I am thankful to all the faculty member of Shri Ram institute Of

Management for their help and valuable suggestion.
DATE: ADITYA VERMA
PLACE: MBA III SEM

A STUDY OF AUDIT AND

REPORT OF STANDARD AUTO
AGENCIES
TABLE OF CONTENTS
Topic Page no
Sr. No.
1 Executive Summary 1
2 Introduction 3
3 Company Profile 4
4 Conceptual Background 7
5 Objective of the study 6
6 Research Methodology 9
7 Data Analysis and Interpretation 17
8 Findings, Suggestions 20
9 Conclusion 22
10 Bibliography 23
EXECUTIVE SUMMARY
The research is on the basis of A Study Of Audit And Report Of

Standard Auto Agencies. A financial audit is conducted to provide
an opinion whether "financial statements" (the information being
verified) are stated in accordance with specified criteria. Normally,
the criteria are international accounting standards, although
auditors may conduct audits of financial statements prepared using
the cash basis or some other basis of accounting appropriate for the
organisation. In providing an opinion whether financial statements
are fairly stated in accordance with accounting standards, the
auditor gathers evidence to determine whether the statements
contain material errors or other misstatement.
The sampling design being used here is sample random sampling.

The sample size is 100 has been used. Thus this report seeks to
utilize primary research, through structured questionnaires and
secondary method involves data collection though magazines and
websites.
The tools being used for analysis and interpretation are Percentage
methods, Graphs & Pie Chart.
INTRODUCTION OF THE
TOPIC
INTRODUCTUION
The audit report is a key deliverable which shows the end results of
the entire audit process. The users of financial statements like
Investors, Lenders, Customers, and others base their decisions and
plans on audit reports of any enterprise. An audit report is always
critical to influencing the perceived value of any financial
statement’s audit.
The auditor should be careful in issuing the audit report as there is

are a large number of people placing reliance on such report and
taking decisions accordingly. The report should be issued by being
unbiased and objective in discharging the functions.
Audit is the examination or inspection of various books of accounts

by an auditor followed by physical checking of inventory to make
sure that all departments are following documented system of
recording transactions. It is done to ascertain the accuracy of
financial statements provided by the organisation.
Audit can be done internally by employees or heads of a particular

department and externally by an outside firm or an independent
auditor. The idea is to check and verify the accounts by an
independent authority to ensure that all books of accounts are done
in a fair manner and there is no misrepresentation or fraud that is
being conducted.
Opinion in an Audit Report
There are primarily two kinds of opinions issued by an auditor in his

/ her audit report:
 Unmodified Opinion (also called Unqualified report)

 Modified Opinion (also called Qualified report)
1. Unmodified Opinion
 Issued for any audit where the auditor is satisfied that the
financial statements present a true and fair view of the
operations and transactions in an enterprise during the period.
 An audit report with an Unmodified Opinion is also known as a
‘Clean Report’. An Unmodified report develops confidence
among users of Financial statements and annual reports of an
enterprise.
 It provides an impression that the financial statements are
reasonably free from any misstatements and results as
appearing there are true and fair.
2. Modified Opinion
 Whenever the auditor has specific findings during his / her

audit and concludes that an Unmodified Opinion cannot be
issued due to the nature of findings, a Modified Opinion is
issued in the audit report.
 There are two basic reasons due to which an auditor concludes
on issuing a Modified Opinion:
 Based on the audit and evidence, finds out that the financial
statements contain a certain degree of material misstatements.
 Unable to obtain sufficient and appropriate evidences to
conclude that the financial statements are free from material
misstatements.
 There are three kinds of modified opinions which are issued
according to the findings and circumstances:
 A. Adverse Opinion
 B. Qualified Opinion
 C. Disclaimer of Opinion
Types of audits
In general, an audit is an investigation of an existing system, report,

or entity. There are a number of types of audits that can be
conducted, including the following
 Compliance audit. This is an examination of the policies

and procedures of an entity or department, to see if it is in
compliance with internal or regulatory standards. This audit is most
commonly used in regulated industries or educational institutions.
 Construction audit. This is an analysis of the costs

incurred for a specific construction project. Activities may include
an analysis of the contracts granted to contractors, prices paid,
overhead costs allowed for reimbursement, change orders, and the
timeliness of completion. The intent is to ensure that the costs
incurred for a project were reasonable.
 Financial audit. This is an analysis of the fairness of the

information contained within an entity's financial statements. It is
conducted by a CPA firm, which is independent of the entity under
review. This is the most commonly conducted type of audit.
 Information systems audit. This involves a review of

the controls over software development, data processing, and access
to computer systems. The intent is to spot any issues that could
impair the ability of IT systems to provide accurate information to
users, as well as to ensure that unauthorized parties do not have
access to the data.
 Investigative audit. This is an investigation of a specific

area or individual when there is a suspicion of inappropriate or
fraudulent activity. The intent is to locate and remedy control
breaches, as well as to collect evidence in case charges are to be
brought against someone.
 Operational audit. This is a detailed analysis of the goals,

planning processes, procedures, and results of the operations of a
business. The audit may be conducted internally or by an external
entity. The intended result is an evaluation of operations, likely with
recommendations for improvement.
 Tax audit. This is an analysis of the tax returns submitted by an

individual or business entity, to see if the tax information and any
resulting income tax payment is valid. These audits are usually
targeted at returns that result in excessively low tax payments, to
see if an additional assessment can be made.
COMPANY PROFILE
STANDARD AUTO AGENCIES
WE STARTED A DEALERSHIP AT JABALPUR IN THE YEAR 2004

AND WITH OUR STUPENDOURS PERFORMANCE AND CUSTOMER
SUPPORT WE EXPENDED OUR BASE OUTSIDE JABALPUR WITH 3S
SETUP IN RURAL BELTS IN AND AROUND JABALPUR WE HAVE
BEEN PERFORMING AS PER THE NEEDS OF OUR PRINCIPLES
YEAR AFTER YEAR AND SETTING BENCHMARKS WHICH ARE SET
EXAMPLE OF OUR PROFESSIONAL APPROACH AND SYSTEMIZED
WORKING AND GOOD WORKING CULTURE WE BELEIVE IN
EMPLOYEE EMPOWERMENT FOR WHICH WE HAVE EXPENDED
OUR OPERATIONS AS UNDER.
Audit team
ABOUT US WELCOME GUEST
CSR
Maruti Suzuki strives to be a people’s company, and for that, it needs
to take care of everyone. Not only is it completely dedicated to the
customers, but also to the communities around the facilities. As a
part of the community development programme, Maruti Suzuki
identify their needs through formal surveys, one to one contact, and
by engaging with the leaders. Their CSR programmes tackle social
issues at both local and national level in order to develop scalable,
impactful, and sustainable social programmes that leave a visible
impact for the future generations
POLICY ON CORPORATE
SOCIAL RESPONSIBILITY
(CSR) Title and ApplicabilitY
Maruti Suzuki India Limited (‘Company’) has developed its
Corporate Social Responsibility Policy (‘Policy’) in accordance with
section 135 of the Companies Law 2013 and the rules made there
under. 2. The Policy shall apply to all CSR programmes of the
Company. CSR Approach and Priorities CSR activities will primarily
be in the areas of village development, road safety and skill
development. To create a visible and lasting impact, the Company
will focus on a few CSR programmes rather than spread resources
thin over several projects. The Company will undertake relevant and
effective social projects to have a positive and meaningful impact on
the lives of communities around it. In the area of road safety, while
the Company has set up several driving schools in collaboration
with its dealers, their number is far from sufficient considering the
needs of society and the low level of consciousness about road
safety in India. The Company will scale up the number of driving
training schools, and take other initiatives to expand quality driving
training in the country. The Company will make efforts to involve
State Governments in its road safety efforts for a bigger impact. In
line with this, the Company will identify a Tier 2 city for a
comprehensive road safety programme in partnership with the

State Government and municipality. The programme will cover all
key areas of road safety, including effective enforcement of the law.
Efforts will be made to persuade State Governments to treat
certificates given by Maruti Driving Schools as sufficient and
necessary for driving licenses. The Company will enhance
employability of underprivileged youth by improving the quality of
skill training in Industrial Training Institutes (ITIs) and designing
innovative business models that create livelihood for them. The
Company will encourage and recognise its employees for
volunteering in the community by serving and sharing their
expertise and skill. The Company’s CSR projects will be
implemented like any other business activity, in a time-bound
manner with clear objectives, plan, targets and robust monitoring
and evaluation parameters. Stakeholder engagement and shared
value creation will be the cornerstones of the CSR programmes of
the Company
Maruti care
Maruti Care, the service app by Maruti Suzuki is all set for an
upgrade as it now comes in an all-new avatar. Backed by study
conducted on the needs and requirements of its customer base,
Maruti Suzuki has introduced a sling of new features in the app in
order to meet the evolving needs of today's tech-savvy, digitally-
connected consumers and assist them with convenient service and
utility support. Maruti Suzuki is keen to take the customer
convenience to next level by adding many new features to the
application, the company said in a statement.
Speaking about the Maruti Care Application, Partho Banerjee, EVP
(Service), Maruti Suzuki India Ltd. said, "With customer convenience
and care in mind, we have come up with the enhanced version of
'Maruti Care App' which continues our transformation journey
further. With the launch of new version, we are taking a step
forward in delivering our commitment of seamless online and
offline integration for our service experience."
The update allows the customer to easily book their car for service.
The Easy On-Click Service Booking also enables the customer to
check the status of their vehicle being serviced from their home or
workplace. Moreover, the customers also have the option of paying
the bills digitally through an integrated payment solution which
facilitates them with secured transaction from anywhere. Through
this app, the customers can also avail GPS enabled emergency on-
road assistance at the tap on their mobile phones.
Conceptual background
Introduction The International Accounting Standards Board

(Board) issued the revised Conceptual Framework for
Financial Reporting (Conceptual Framework), a
comprehensive set of concepts for financial reporting, in
March 2018. It sets out: • the objective of financial reporting
• the qualitative characteristics of useful financial
information • a description of the reporting entity and its
boundary • definitions of an asset, a liability, equity, income
and expenses • criteria for including assets and liabilities in
financial statements (recognition) and guidance on when to
remove them (derecognition) • measurement bases and
guidance on when to use them • concepts and guidance on
presentation and disclosure This Project Summary
summarises: • why the Board revised the Conceptual
Framework • the main changes from the previous
Conceptual Framework • the main concepts and guidance in
each chapter of the Conceptual Framework
Purpose • to assist the Board to develop IFRS Standards

(Standards) based on consistent concepts, resulting in
financial information that is useful to investors, lenders and
other creditors • to assist preparers of financial reports to
develop consistent accounting policies for transactions or
other events when no Standard applies or a Standard allows
a choice of accounting policies • to assist all parties to
understand and interpret Standards Status • provides
concepts and guidance that underpin the decisions the
Board makes when developing Standards • not a Standard •
does not override any Standard or any requirement in a
Standard Effective date • immediately for the Board and the
IFRS Interpretations Committee • annual periods beginning
on or after 1 January 2020 for preparers who develop an
accounting policy based on the Conceptual Framework
Chapter 1—The objective of financial reporting This chapter
sets out the objective of general purpose financial reporting
(financial reporting), what information is needed to achieve
that objective and who the primary users (users) of financial
reports are. Objective of financial reporting To provide
financial information that is useful to users in making
decisions relating to providing resources to the entity
Stewardship Users of financial reports need information to
help them assess management’s stewardship.
The Conceptual Framework explicitly discusses this need as

well as the need for information that helps users assess the
prospects for future net cash inflows to the entity. Users’
decisions involve decisions about buying, selling or holding
equity or debt instruments providing or settling loans and
other forms of credit voting, or otherwise influencing
management’s actions To make these decisions, users assess
prospects for future net cash inflows to the entity
management’s stewardship of the entity’s economic
resources To make both these assessments, users need
information about both the entity’s economic resources,
claims against the entity and changes in those resources and
claims how efficiently and effectively management has
discharged its responsibilities to use the entity’s economic
resources Summary of changes This chapter was issued in
2010 and went through extensive due process at that time.
Therefore, in revising the Conceptual Framework, the Board
did not fundamentally reconsider this chapter. However, it
clarified why information used in assessing stewardship is
needed to achieve the objective of financial reporting. Users
of financial reports Users of financial reports are an entity’s
existing and potential investors, lenders and other creditors.
Those users must rely on financial reports for much of the
financial information they need.
Research methodology
What is Research ?
1. A voyage of discovery; A journey; An attitude; An
experience; A
method of critical thinking; A careful critical enquiry in
seeking
facts for principles
2. An art of scientific investigation
•Scientific and systematic search for pertinent information
on a specific
topic
•Process of arriving at dependable solutions to problems
through the
planned and systematic collection, analysis and
interpretation of data
3. A systematized effort to gain new knowledge; A
movement from the
known to the unknown
•Search for (new) knowledge/ facts through objective,

systematic and
scientific method of finding solution to a problem
•Implicit question + Explicit answer + data to answer the
question
•Not synonymous with commonsense, but systematic,
objective
(purposeful), reproducible, relevant activity having control
over some
factors
4. An activity caused by instinct of inquisitiveness to gain
fresh
insight / find answers to question / acquire knowledge
Terms Used
1. RESEARCH TECHNIQUE - Behaviour and instruments

used in research operations.
Examples: Scales, recording techniques, content analysis,
moving
average, longitudinal / cross sectional collection of data, etc.
2. RESEARCH METHOD - Behavior and instruments used
in selecting and
constructing technique (a range of approaches used to
gather data)
Examples: Observation, questionnaire, interview, analysis of
records,
case study, etc.
Methods are more general than techniques. Methods &
Techniques are
used in performing research operations, i.e..,
 Collection of data
 Statistical processing & analysis (tests)
 To evaluate the accuracy of the results obtained
NOTE: Research techniques and research methods are

almost
interchangeably used
M S Sridhar, ISRO Research Methodology 1 10
Research Methodology
•A science of studying how research is done scientifically
•A way to systematically solve the research problem by
logically
adopting various steps
•Methodology helps to understand not only the products of
scientific inquiry but the process itself
•Aims to describe and analyze methods, throw light on their
limitations and resources, clarify their presuppositions and
consequences, relating their potentialities to the twilight
zone at
the ‘frontiers of knowledge’
Benefits of Research Methodology
1. Advancement of wealth of human knowledge
2. ‘Tools of the trade’ to carry out research; Provides tools to
look at things in life objectively.
3. Develops a critical and scientific attitude, disciplined

thinking or
a ‘bent of mind’ to observe objectively (scientific deduction
&
inductive thinking); Skills of research will pay-off in long
term
particularly in the ‘age of information’ (or too often of
misinformation)
4. Enriches practitioner and his practices; Provides chance to
study a subject in depth; Enable us to make intelligent
decisions; Understand the material which no other kind of
work
can match
5. As consumers of research output helps to inculcate the
ability to
evaluate and use results of earlier research with reasonable
confidence and take rational decisions
6. Doing research is the best way to learn to read and think
crically
.
Financial ratio analysis
Financial performance analysis is the process of determining

the operation and financial characteristics of a firm from
accounting and financial statements. The goal of such an
analysis is to determine the efficiency and performance of
the firm’s management, as reflected in the financial records
and reports. The word ‘performance’ is derived from the
word ‘perfourmen’, which means ‘to do’, or ‘to carry out’ or
‘to tender’. It refers to the act of performing: execution,
accomplishment, fulfillment etc. In a broader sense,
performance refers to the accomplishment of a given task
measured against preset standards of accuracy,
completeness, cost and speed. Performance is used to
indicate the firm’s success, conditions, and complains. The
goal of financial performance analysis is to determine the
efficiency and performance of the firm’s management, as
reflected in the financial records and reports. The analyst
attempts to measure the firm’s solvency, liquidity,
profitability and other indicators so that the business is
conducted in a rational and normal way.
More specifically, any research on financial performance of a

business organization seeks to dwell upon mainly, (1)
assessing the short term and long term solvency (2)
assessing the liquidity and profitability, (3) identifying the
efficiency of financial operations and (4) analyzing the
factors determining the solvency level liquidity and
profitability.
NEED FOR THE STUDY

The interest of the various groups related to a firm is
affected by the financial performance of the firm. So it is
much of significance for these groups to analyze the financial
performance of the firm they are interested in. The study
focus on overall financial position of particular Maruthi
Suzuki company during the specific period based on the
selected variables, which may interest not only for the
respective companies in the industry but also brings a
process of development operational aspects of the entire
industry. The study is much important to the management
from the point of decision-making purpose, to identify the
strength, weakness areas of the company and finally helps to
maximize the intrinsic value of the company.
STATEMENT OF THE PROBLEM

Financial performance analysis is the process of
determining the operation and financial characteristics of
affirm from accounting and financial statements. The goal of
such an analysis is to determine the efficiency and
performance of the firm’s management, as reflected in the
financial records and reports. From the above point of view
the researcher has undertaken an analysis of financial
performance of Maruti Suzuki India Limited Company to
understand how management of finance plays a crucial role
in the growth.
OBJECTIVES OF THE STUDY
To study the growth and development of Maruthi Suzuki

India limited Company. * To examine the consistency and
growth rate of selected financial parameters of the particular
Maruthi Suzuki Company * To analyze profitability and
liquidity status of the Maruthi Suzuki Company Limited.
HYPOTHESES
Null hypotheses was framed for the study.
METHODOLOGY
SOURCES OF DATA
Secondary data are used in this study, which were collected
from the various data base, journal and magazines. Variables
pertaining to behavior of liquidity, leverage and profitability
were collected from the balance sheet and profit and loss
account of the selected Maruthi Suzuki India Limited
Company for a period of 5 years i.e from 2010-11 to2014-15.
PERIOD OF THE STUDY

The present study covers a period of five years from 2010-
11 to 2014-15.
FRAME WORK OF ANALYSIS: Analyzing the performance of
a company can be done through a carful and critical analysis
of financial statements. The two important financial
statements are ‘ Balance sheet” and ‘ Profit and loss account’.
It indicates the operating results and financial position of the
concern, therefore by analyzing and interoperating the
statements, performance can be apprised. In the light of the
above in this study various financial ratios and variables
have been used to examine the objectives of the study.
LIMITATIONS OF THE STUDY

The study covers a period of five years from 2010-11 to
2014-15. Secondary data were collected for this study due to
cost and time constrains. The present study is largely based
on ratios, which have been its own limitations.
CHAPTER SCHEME
The present study is organized as six chapters The first
chapter covers introduction, significance of the study,
statement of the problem, objective of the study, hypotheses
framed, sources of data, period of the study, frame work of
analysis, scope of the study, limitations of the study and
scope for the further research. Review of literature are
presented in the Second Chapter. The Third Chapter studies
the history of the Maruthi Suzuki India Limited Company.
The Fourth Chapter devoted for the financial analysis of the
Mauthi Suzuki India Limited Company. Summary of findings,
conclusions and suggestions are presented in the last
chapter.
Profitability Ratios
The Profitability ratios measures the overall performance
and effectiveness of the firm.
Gross profit –
Ratio is the ratio of gross profit to net sales i.e. sales less
sales returns. The ratio thus reflects the margin of profit that
a concern is able to earn on its trading and manufacturing
activity. It is the most commonly calculated ratio. It is
employed for inter-firm and inter-firm comparison of
trading results. Gross profit is what is revealed by the
trading account. It results from the difference between net
sales and cost of goods sold without taking into account
expenses generally charged to the profit and loss account.
The larger the gap, the greater is the scope for absorbing
various expenses on administration, maintenance, arranging
finance, selling and distribution and yet leaving net profit for
the proprietors or shareholders.
NET PROFIT RATIO-
Net profit ratio (NP ratio) expresses the relationship

between net profit after taxes and sales. This ratio is a
measure of the overall profitability net profit is arrived at
after taking into account both the operating and non-
operating items of incomes and expenses. The ratio indicates
what portion of the net sales is left for the owners after all
expenses have been met.
OPERATING RATIO –
The operating ratio is a financial term defined as a

company's operating expenses as a percentage of revenue.
This financial ratio is most commonly used for industries
which require a large percentage of revenues to maintain
operations, such as railroads. In railroading, an operating
ratio of 80 or lower is considered desirable. The operating
ratio can be used to determine the efficiency of a company's
management by comparing operating expenses to net sales.
It is calculated by dividing the operating expenses by the net
sales. The smaller the ratio, the greater the organization's
ability to generate profit. The ratio does not factor in
expansion or debt repayment. Alternatively, it may be
expressed as a ratio of sales to cost. In such case a higher
ratio indicates a better ability to generate revenue.
PROPRIETARY RATIO –
The proprietary ratio (also known as the equity ratio) is the

proportion of shareholders' equity to total assets, and as
such provides a rough estimate of the amount of
capitalization currently used to support a business. If the
ratio is high, this indicates that a company has a sufficient
amount of equity to support the functions of the business,
and probably has room in its financial structure to take on
additional debt, if necessary. Conversely, a low ratio
indicates that a business may be making use of too much
debt or trade payables, rather than equity, to support
operations (which may place the company at risk of
bankruptcy).
ASSETS TURNOVER RATIO-
Asset turnover is a financial ratio that measures the

efficiency of a company's use of its assets in generating sales
revenue or sales income to the company. Companies with
low profit margins tend to have high asset turnover, while
those with high profit margins have low asset turnover.
Companies in the retail industry tend to have a very high
turnover ratio due mainly to cutthroat and competitive
pricing. The ratio of the value of a company’s sales or
revenues generated relative to the value of its assets. The
Asset Turnover ratio can often be used as an indicator of the
efficiency with which a company is deploying its assets in
generating revenue.
STOCK TURNOVER RATIO-
( INVENTORY TURNOVER RATIO) 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 or net sales divided by
the average inventory. Inventory turnover is also known as
inventory turns, merchandise turnover, stock turn, stock
turns, turns, and stock turnover. Increasing inventory
turns reduces holding cost. The organization spends less
money on rent, utilities, insurance, theft and other costs of
maintaining a stock of good to be sold. Reducing holding
cost increases net income and profitability as long as the
revenue from selling the item remains constant. Items that
turn over more quickly increase responsiveness to changes
in customer requirements while allowing the replacement of
obsolete items.
This is a major concern in fashion industries. When

making comparison between firms, it's important to take
note of the industry, or the comparison will be distorted.
Making comparison between a supermarket and a car
dealer, will not be appropriate, as supermarket sells fast
moving goods such as sweets, chocolates, soft drinks so the
stock turnover will be higher. However, a car dealer will
have a low turnover due to the item being a slow moving
item. As such only intra-industry comparison will be
appropriate.
Summary Of Findings,
Suggestions And
Conclusions.
Performance of a company measured in financial terms, the

success of the firm depends on how it is perceived by and
reacts to the external economics markets. The field of
managing fiancé is much more complicated and faster faces
today. Financial managers need to know how effective
decisions can be made and ineffective ones be avoided. The
present study is concerned with financial analysis of Maruti
Suzuki India Limited for a period of five years during 2010-
11 to 2014-15. This chapter optimizes the major findings,
suggestions and conclusions for efficient utilization with
respect to Maruti Suzuki India Limited Company.
Findings:
The current ratio was increased the ratio of 1.09 in the year
2010-2011 and decreased 0.38 in the year 20142015. The
Liquid Ratio was increased in the ratio of 0.76 in the year
2010-2011 and decreased 0.11 in the year 2014-2015. The
Absolute liquid ratio was increased in the ratio of 1.89 in the
year 2014-2015 and decreased 0.07 in the year 2013-2014.
The Gross Profit Ratio was increased in the ratio of 52.18 in
the year 2014-2015 and decreased 32 in the year 2010-
2011. The Net profit ratio was increased in the ratio of 63.24
in the year 2010-2011 and decreased 4.60 in the year 2011-
2012. The operating profit ratio was increased in the ratio
of 13.43 in the year 2014-2015 and decreased 7.06 in the
year 2011-2012. The Debt – Equity Ratio balanced in the
ratio of 100% all the year. The Proprietary ratio was
increased in the ratio of 0.99 in the year 2014-2015 and
decreased 0.92 in the year 2013-2014.
Suggestions:
Auto industry thus present a good opportunity for the

investors especially in the form of Mahindra and Mahindra
ltd. Major Indian producers like Tata’s and Maruti may be
doing good in the form of numbers in sales but will face
great competition in for of Mahindra and Mahindra.
Mahindra and Mahindra has a great position on the stock
market and will attract investors and this could lead to
expansion and growth. Thus the Tata’s and Maruti need to
take care of their stock and work on its consistency. This
would help them attract more investors and grow in this
growing economy of India. Increasing demands and sales
numbers of Indian auto bring many opportunities for these
players if they are up to grab it.
CONCLUSION:
The study explored the truth that ratios by themselves mean

nothing. It is found that ratios are calculated from the financial
statements’ which are prepared as desired by the management and
policies adopted on depreciation and stock values and thus produce
only a collection of facts expressed in monetary term and cannot
produce complete and authentic picture of the business and also
may not highlight other factors which affects performance. It is also
found that to control manager’s management often overuse ratio
and concentrate more on improving the ratios. It is also known fact
that ratio is simple comparison of numerator and a denominator
and in comparing ratios it become difficult to adjudicate whether
differences are due to change in the numerator or denominator or in
both. It is also found that ratios are interconnected but are often
treated by management in isolation. It is also found that analysis of
ratios lack authenticity as data used in calculation are not accurate
but manipulated presentation by the promoters. It is also found that
different firms follow different accounting policies like depreciation
allowance; valuation of inventory etc. and often management ignore
these differences while making inter-firm comparison. It is known
fact that ratios are calculated from past records and have no
indicator of future and are also not compared according to standard.
It is also found that change in price levels due to inflation is also not
properly considered by management. In the shadow of above
revelation and fact the study conclude that Marutisuzuki have better
strategic position in comparison to its competitor in all the
respective ratios.
It has secured top position in Liquidity analysis, in profitability

analysis in relation to sales and in relation to investment, in
efficiency analysis, in leverage analysis, in market valuation and has
secured first rank. Tata on other hand with almost second rank in all
the respective analysis has secured second position.
BIBLIOGRAPHY
Books Referred
 MANAGEMENT ACCOUNTANCY - SHASHI. K. GUPTA
 FINANCIAL ACCOUNTANC - BALIJINDER SINGH & R.K.MAHAJAN
 FINANCIAL MANAGEMENT - S.N. MAHESHWARI
WEB SITES:
www.standardautoagencies.com/.
en.financialmanagement.org/
www.accountingformanagement.org/
ANNEXURE
BALANCE SHEET OF STANDARD AUTO AGENCIES
PARTICULAR 2014 2015 2016 2017

EQUITY & LIABILITIES
1. SHAREHOLDER FUND
Share Capital 5141.77 5141.77 5141.77 5141.77
Reserve & Surplus 105638.51 109580.59 114016.51 127837.95
110780.28 114722.36 119158.28 132979.72
2. NON CURRENT LIABILITIES
Long Term Borrowing 75075.64 70778.91 60259.99 3704.09
Deferred Tax Liabilities (Tax) 6661.20 8042.20 7038.32 7036.15
Other Long Term Liabilities 1000.00 1000.00 1000.00 1000.00
Long Term Provision 1709.92 988.70 1007.37 1113.00
84446.76 80809.81 69575.68 82853.24
3.CURRENT LIABILITIES
Short Term Borrowing 36316.29 74816.68 120686.73 130808.63
Trade Payable 218352.56 246711.97 321306.24 332483.24
Other Current Liabilities 98713.93 100376.7 98903.61 84285.07
Short Term Provision 8010.22 7865.46 11506.41 111072.24
361396.00 429770.81 552402.99 558649.18
Total(1+2+3) 556620.04 625302.98 741186.95 774482.14
Assets
1.Non Current Assets
A. Fixed Assets
Tangible Assets 64262.92 82299.53 82733.04 73095.95
Intangible Assets 16711.10 15832.99 14688.56 13367.14
Capital Work In Progress 11217.09 3011.85 1799.29 1644.47
92191.11 101144.37 99220.84 88107.50
B. Goodwill On Consolidation 32092.80 34240.95 37777.03 39426.78
C. Non Current Investment - - - 1.08

D.Deferred Tax Assets (Net) 1529.66 1831.66 2171.38 1763.34

E. Long Term Loans & 11762.38 14210.16 19765.90 31206.76
Advances
F. Other Non Current Assets 7272.38 9166.86 13122.91 19286.64
144848.66 160594.00 172058.06 179792.10
2. Current Assets
A. Inventories 44011.11 39599.36 50523.05 47639.25
B. Trade Receivable 250624.63 288700.13 380779.8 885293.45
C. Cash & Cash Equivalents 20290.68 15560.62 14400.75 20631.81
D. Short Term Loans & 39243.81 51971.18 51298.05 63863.81
Advances
E. Other Current Assets 57601.15 68877.69 72077.24 77261.8
411771.38 464708.98 569078.89 594690.04
Total (1+2) 556620.04 625302.98 74113695 774482.14

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STUDY OF AUDIT AND REPORT OF STANDARD AUTO AGENCIES

SHRI RAM INSTITUTE OF MANAGEMENT JABALPUR

This is to certify that Mr. ADITYA VERMA MBA 3rd Sem

It has been duly completed as record of bonafide work in

SHRI RAM INSTITUTE OF MANAGEMENT JABALPUR

This is to certify that the Project Report entitled “A STUDY OF

PLACE: JABALPUR PROF. ATUL DUBEY

SHRI RAM INSTITUTE OF MANAGEMENT JABALPUR

I ADITYA VERMA do hereby declare that the project entitled “A

PLACE : JABALPUR ADITYA VERMA

I would like to express my gratitude towards Principal Dr. Atul

I am highly indebted to PROF. ATUL DUBEY for his/her

I am thankful to all the faculty member of Shri Ram institute Of

DATE: ADITYA VERMA

PLACE: MBA III SEM

A STUDY OF AUDIT AND

5 Objective of the study 6

7 Data Analysis and Interpretation 17

The research is on the basis of A Study Of Audit And Report Of

The sampling design being used here is sample random sampling.

The auditor should be careful in issuing the audit report as there is

Audit is the examination or inspection of various books of accounts

Audit can be done internally by employees or heads of a particular

Opinion in an Audit Report

There are primarily two kinds of opinions issued by an auditor in his

 Unmodified Opinion (also called Unqualified report)

 Whenever the auditor has specific findings during his / her

In general, an audit is an investigation of an existing system, report,

 Compliance audit. This is an examination of the policies

 Construction audit. This is an analysis of the costs

 Financial audit. This is an analysis of the fairness of the

 Information systems audit. This involves a review of

 Investigative audit. This is an investigation of a specific

 Operational audit. This is a detailed analysis of the goals,

 Tax audit. This is an analysis of the tax returns submitted by an

STANDARD AUTO AGENCIES

WE STARTED A DEALERSHIP AT JABALPUR IN THE YEAR 2004

ABOUT US WELCOME GUEST

comprehensive road safety programme in partnership with the

Introduction The International Accounting Standards Board

Purpose • to assist the Board to develop IFRS Standards

The Conceptual Framework explicitly discusses this need as

•Search for (new) knowledge/ facts through objective,

1. RESEARCH TECHNIQUE - Behaviour and instruments

NOTE: Research techniques and research methods are

3. Develops a critical and scientific attitude, disciplined

Financial ratio analysis

Financial performance analysis is the process of determining

More specifically, any research on financial performance of a

NEED FOR THE STUDY

STATEMENT OF THE PROBLEM

OBJECTIVES OF THE STUDY

To study the growth and development of Maruthi Suzuki

PERIOD OF THE STUDY

LIMITATIONS OF THE STUDY

NET PROFIT RATIO-

Net profit ratio (NP ratio) expresses the relationship

The operating ratio is a financial term defined as a

The proprietary ratio (also known as the equity ratio) is the

ASSETS TURNOVER RATIO-

Asset turnover is a financial ratio that measures the

STOCK TURNOVER RATIO-

( INVENTORY TURNOVER RATIO) The Inventory turnover is

This is a major concern in fashion industries. When