TITLE OF THE STUDY

“A STUDY ON ANALYSIS OF FINANCIAL PERFORMANCE OF

MARUTI SUZUKI INDIA LTD USING RATIO ANALYSIS”

STATEMENT OF PROBLEM

Maruti Suzuki India Ltd is one of the India’s leading automobile manufacturers

and the market leader in the car segment, both in terms of volume of vehicle sold

and revenue earned. Maruti Suzuki India Ltd, formally known as Maruti Udyog

Ltd, was established in February 1982 in Gurgaon Haryana. Company set out with

an obsession for customer delight, it was a commitment to create value through

innovation, quality, creativity, partnership, openness and learning.

Today Maruti Suzuki alone makes 1.5 million family cars every year. The

company has been having a remarkable journey through its years. In order to

continue with the same performance it is not only important for a company to be

financially sound but also show its improvement in financial performance.

The financial performance is reflected in its profitability liquidity and solvency.

The profit reflects efficiency in operations of an organization. The liquidity is an

indicator of its cash position to meet various transaction needs. The solvency of an
organization indicates its liabilities to its outsiders and the extent of ownership

funds. The profit and loss account and the balance sheet of an organization will

enable analysis of its financial performance towards understanding its strength and

weaknesses. Ratio analysis is a method of analysis of financial performance which

is widely used to asses an organization’s financial performance. The ratios are easy

to understand for all the stake holders, especially the management, thus it was

found necessary to use ratio analysis to study the financial performance of Maruti

Suzuki Ltd India

OBJECTIVES OF THE STUDY

 To study the profitability at Maruti Suzuki .

 To assess the liquidity position of an organization.

 To understand the solvency position of the organization.

 To make a comparative analysis of the financial performance over the time

period of the study.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how the research is done scientifically.

So the research methodology not only talks about research methods but also

considers the logic behind the method used in the context of the research study.

RESEARCH DESIGN

A research design is a logical and systematic plan prepared for directing a research

study and a method to show the research problem. It may be understood as a

science of studying how research is done scientifically.

SOURCES OF DATA

The sources of data are from the annual reports of the company.