The Role Of Accountants In Todays Business Organizations Accounting Essay

The Role Of Accountants In Todays Business Organizations Accounting Essay In the past ten years, a significant amount of research attention was focused on recognizing, analyzing, contradicting, favoring, and critiquing the changing roles of accountants. In the past ten years, we witnessed accountants assuming additional tasks such as strategy formulation, systems development, organizational re-design and a whole lot more. In the 21st century, we have seen accountants devoting much less of their time to routine financial analysis, transaction processing, auditing and statutory reporting. The roles of accountants in the business environment have become business oriented.  [1]  These changes posed crisis for accountants as the professions credibility has been questioned.  [2]   In this paper, we look into the traditional roles of accountants and compare such to that of the roles of the modern accounting profession. I discuss some ethical concerns binding these roles and express my opinion regarding these changes. This discussion leads to the main point of this paper- the importance of accountants in todays business environment along with the demands for new roles of the accountants. Moreover, I also discuss various sources and types of information available to the accountants and the quality that this information should possess. Information, an increasingly important asset for all business organization, is necessary for accountants to satisfy these new demands for their expertise. The Roles of Accountants Accountants face dilemma as they face two contrasting roles at the same time. First, they are seen as watchdogs for top management while they are also seen as helpers of the management. However, the second role seemed to have increased its importance in the recent years and accounting systems was seen as impetus for organizations improvement.  [3]   Specifically, the traditional roles of accountants include: auditing, managerial accounting, and tax accounting. These roles are the most basic functions that accountants are trained for as early as undergraduate education. On the other hand, the additional or modern roles of accountants are financial planning, business analysis and strategy, technology planning and consulting. Within these roles, the accountants serve more specified tasks. These are usually assumed in the actual practice; hence skills are acquired in the actual practice. Auditing. This is theoretically, the basic and most important role of an independent accountant. The tasks of the accountant as an auditor are to check the organizations estimate is in accordance to formulas that are used consistently every year.  [4]  However, the importance of auditing as a business process has decreased recently. In a survey done among academicians, practitioners and students, audit preparation only received a moderate rank in terms of importance of this task by accountants.  [5]   Managerial Accounting. This is usually the role of in-house accountants who act as either controllers or internal auditors. The task of an in-house accountant is to give the most accurate picture of the economic status of the company and to respect the truth about the report.  [6]   Tax Accounting. This is the role of a book keeper or tax preparatory. The tasks of the book keeper include: determination and estimation of tax liabilities of the clients whether individual or corporate.  [7]   Financial Planning. This is a rising role for accountants. The demand for this new role is brought about by their knowledge and expertise on taxation laws and financial investment markets.  [8]  Additional tasks under this role include: performing due diligence, organizing share-holder meetings, supervising cash management and payroll handling.  [9]   Business Planning and Strategy. This is the role of accountants to translate raw financial numbers into usable business information. Project accounting and knowledge management are also additional tasks under this new role for accountants. Under this role, accountants guide managers and business owners to improve productivity and maximize profitability.  [10]   Technology Planning. With the automation of various business processes, accountants also become involved in development and implementation of new information systems. Now, owners and managers rely on accountants to choose the most suitable technology solutions for financial and business management.  [11]   Consulting. Accountants also become consultants for financial management, income distribution, accounting and auditing functions as well.  [12]   The Key Drivers of Role Changes It has been made clear in the literature that the roles of accounting have changed in the recent years and these changes are expected to continue. The roles of accounting shifted from information provision to extended information facilitation. Specifically, this shift in roles made accountants from book keeping, data analysis, and tax preparation into much wider range of duties in management.  [13]  This is to say that the roles of accountants shifted into business oriented or entrepreneurial roles. This shift is brought about by the following key drivers: changes in business market conditions, re-designing organization, new managerial philosophies, more complex business processes, systems development, innovations in management techniques, and human resource development.  [14]   Because of these key drivers, changes in the roles of accountants are more likely to continue in at least another ten years. No longer bounded by numbers and formulas, accountants can feel free and rely on their creative and strategic side. The Challenge for Accountants Accountants will always be as important to business enterprises today. While others argue that change in orientation of accountant is a blow to the credibility of the profession, I believe this is rather a challenge that accountants need to glorify. Business oriented or entrepreneurial roles for accountants call for additional skills in these fields. In order to achieve credibility again, as others claim that the profession has lost it, accountants should master these additional fields to be considered experts of the field. Hence, this does them not mere practitioners of these new fields but experts as well. This is a call to the accounting education research to dwell more on these additional fields so accountants may gain more in sights as to how these fields may be associated firmly with the traditional accounting practices. This is also a call to the academe to train the aspiring accountants to be flexible and well rounded ones in order to for them to satisfy the demands that awaits them in the actual practice. This is also a call for students to be open minded and be willing to accept these changing roles not as insults but rather a challenge and opportunity to become more significant in todays business environment. Lastly, this is a call for certified and practicing accountants to get out of numbers and formulas and be willing to use their creative minds to do more analysis and strategizing- and more opportunities that may prove that accountants can satisfy the demands of the present business environment to them; without sacrificing of course, the core ethics of the traditional acco unting profession. Accountants should hold on traditional ethics and values. It is the roles, skills, and practice that will change and re-oriented. Sources and Quality of Accounting Information Moreover, in order to satisfy the present demands for accountants, information is also a necessary. Now, information is a vital resource for the survival of all contemporary business organizations. It has become of the basic and most important resource for business intelligence and achievement of competitive advantage. In this section, I discuss the sources of information and the quality of this information needed by accountants. In everyday business, various types and quantities on information flow to decision makers and users to meet internal organizational needs. The sources of information for the accountant may come from any of the components of information flow system within an organization. These include top management sources, middle management sources, operations management sources and operations personnel sources. This information flow is an exchange of performance information, day-to-day operations information and budget information and instructions.  [15]   Moreover, in order to be useful, accounting information should have each of the following qualities at a minimum degree: Understandability. Accounting information should be comprehensive and understandable to users who have reasonable knowledge of business and economic activities and economic information. This quality serves as a link between decision makers and the accounting information at hand. Decision Usefulness. Decision usefulness is also a qualitative characteristic needed to judge quality of accounting information. This is dependent on the availability of information and ability of the user to process the information for it to be used in decision making. Relevance. Accounting information should also be relevant in order to help the user of information analyze the outcomes of the past and present and predict the outcome of the future events according to prior expectations. In order to be relevant, the information must have predictive and feedback value and timeliness. Reliability. Accounting information will also be useful if it is reliable. This is to say that information must be free from error and bias; hence presenting faithfully what is intended to be presented. Verifiability. Accounting information must also be verifiable for measures to agree with the selected method without error or bias. Verification is useful in reducing measure bias because the same method can be used to repeat measurements to reduce intentional and unintentional errors. Comparability and Consistency. Lastly, accounting information must be comparable because information becomes more useful when compared with information from other companies. This allows accountants to identify and explain similarities and differences between two or more economic facts.  [16]  

How does Sushi reflect Japanese culture? Essay

Japanese people show great pride in their heritage and they use their food as a form of expression in order to show their cultural heritage. The Japanese focus on the small things in their cuisine that helps make such a large impact in the quality of the food. The country takes pride in their food and uses it for various symbolic reasons. Sushi and pride both have a large correlation in Japanese culture. Their attention to detail is also used as an advantage in order to show people all around the world as to why they are known for their wonderful cuisine. Sushi is pivotal in showing the identity of the Japanese people. Various factors play a role in sushi, such as; the geographical location of the country, the country’s history, its own culture, the aesthetics of the cuisine, and the global economy as a whole. The geographical location is a large reason as to why the country uses sushi in such a large amount of its fine cuisine. The country is largely surrounded by water and their main export also happens to be fish. Japan takes advantage of its geographical location by using its surroundings, the ocean, to the fullest. The geographical location of Japan also highly contributes to the countries own economy. Their main exports are agriculture and fish. Their rice fields and the use of the seaside help Japan’s economy tremendously. The country always manages to have a great harvest for their rice fields which increases the overall value of the rice, thus increasing the economy. Not only does this mean that the economy increases, but for the rice that they do hold on to, has excellent quality and will be applied to their cuisine. Applying better than average quality rice into their cuisine will also increase tourism to the country. Japan’s quality of food is known throughout the entire world and helps represent the Japanese culture as a whole. The history of Japanese cuisine also plays a large role in Japanese identity. The countries fish has a high value in the world market and are constantly able to receive fresh fish from their waters. The countries history has always consisted of sushi. Earlier ancestors use to dislike the taste of only the fish and wanted something to add onto the fish, thus  adding rice. This is very similar in how other various countries use bread as a way to help combat their meals as well. Throughout the country’s history, sushi began to appear in the west. As more sushi began to appear in other countries, the higher the demand became. As a result of high demand, tourism significantly increased and so did the export of fish. Other countries began to implement fish into their own cuisines and Japanese identity/culture began to spread all over the world. The late 20th century saw sushi gaining in popularity all over the world. The culture of the Japanese helped introduce sushi into Japan. Their religious affiliations, which were Buddhism, prevented them from eating meant. They saw animals as sacred beings with souls just like them. As a result, they refused to kill animals. The Japanese viewed fish as an alternative method because they were not allowed to harm other animals dude to their religious affiliation. Not only did fish become the staple of Japanese identity, so did rice. Rice has been around since the beginning of Japanese culture and still remains a staple of Japanese identity to this day. The combination of the two most consumed food in Japan led to sushi, which quickly spread to western countries. To this day Japanese identity/culture has a lot to do with the introduction of sushi in its history. The aesthetics of sushi also plays a large role in Japanese identity. No other countries have been able to create the quality of food as the Japanese do. The quality of the fish and the simplicity of the presentation of the product are like no other. The quality of ingredients plays a large role in their food, as it takes days to weeks in order to properly marinate their fish. The cooks refuse to distribute the food until they believe it is presentable in their eyes. The beauty of the presentation helps bring a unique style to sushi. The various colors, shapes, and texture help bring a unique element. The overall presentation of sushi is just beautiful, something that is hard to mimic. The overall eating experience of Japanese cuisine is a relaxed, almost spiritual experience, something that very few cultures have. Sushi overall is a true art. The presentation, taste, and experience as a whole help bring sushi to life, something that cannot be  replicated. Sushi today is the foundation of Japanese culture/identity and will always exist in the Japanese lifestyle. Sushi is not only a major export, but also something that the Japanese take great pride in. Japanese people show great pride in their heritage and they use their food as a form of expression in order to show their cultural heritage. It represents symbolism in the Japanese lifestyle and will continue to flourish in the future. Work Cited Allison, Anne 1991 Japanese Mothers and Bentos: The Lunch Box as Ideological State Apparatus. Anthropological Quarterly 64(4):195-208. Bestor, Theodore C. 2001. Supply-Side Sushi: Commodity, Market, and the Global City. American Anthropologist Volume 103 (1): 76-95. Jstor, www.jstor.org, November 22, 2010. Bestor (2001) Supply-Side Sushi Commodity Market and the Global City Bestor, Theodore C. 2005 How Sushi Went Global. In Cultural politics of Food and Eating; A Reader, edited by James L. Watson and Melissa L. Caldwell, pp.13-20. Blackwell, Oxford. Bestor, Theodore C. 2006 Kaiten –zushi and Konbini: Japanese Food Culture in the Age of Mechanical Reproduction. In Fast Food/Slow Food: The Cultural Economy of the Global Food System, edited by Richard R. Wilk, pp.115-130. Altamira Press, Maryland. Casal, U. A. 1957 The Five Sacred Festivals of Ancient Japan: their symbolism and historical development. Sophia University, Tokyo Ceccarini, Rossella 2010 Food Studies and Sociology: A Review Focusing on Japan. AGLOS: Journal of Area-Based Global Studies 1:1-17. Durrenberger, E. Paul and Gà ­sli Pà ¡lsson 1987 Ownership at Sea: Fishing Territories and Access to Sea Resources. American Ethnologist. 14(3):508-522. Jstor 1993 Rice as self: Japanese identities through time. http://books.google.com/ accessed November 20. 2010. Goldburg, Rebecca and Rosamond Naylor 2005 Future Seascapes, Fishing, and Fish Farming. Frontiers in Ecology and the Environment. 3(1):21-28. Jstor, http://jstor.org 1983 Microbiology of Oriental Fermented Foods. http://www.annualreviews.org/doi/pdf/10.1146/annurev.mi.37.100183.003043 accessed November 21 Kasulis, Thomas P. 1995 Sushi, Science, and Spirituality: Modern Japanese Philosophy and Its Views of Western Science. Philosophy East and West Volume 45(2): 227-248. Jstor. www.Jstor.org, November 22, 2010. Kegan, Paul 2001The History and Culture of Japanese food. New York. Routledge. Kegan, Paul. Loveday, Leo, and Satomi, Chiba 1998 Partaking with the Divine and Symbolizing the Societal: The Semiotics of Japanese Food and Drink. Semiotica 56(1-2):115-132. Google Scholar, http://scholar.google.com Magnuson, John J.; Carl Safina and Michael P. Sissenwine 2001 Whose Fish Are They Anyway?. Science. 293(5533):1267-1268. Jstor, http://jstor.org/ Mansfield, Becky

R – 7 Scandal – Boston Post Magazine

The breakthrough of the century could have been the Respiratory Syncytial Virus (RSV) or more commonly termed as R – 7. With two and a half years of research, Dr. Cliff Bannaker has worked on this virus from its very conception up to its ‘coming out’ at Glass-Mendelssohn laboratory. This particular drug is banked on as the possible cure to cancer. The Glass-Mendelssohn laboratory is at the heart of Harvard University’s Philpott Institute. The Director is Dr. Sandy Glass, whose given name is Sam Glazeroff, who is a descendant of Eastern European Jews. On the other hand, his co- director Marrion Mendelssohn, is a product of Franz Applebaum at Columbia. This is also where she met her husband Jacob, who in turn was a researcher – turned professor, now teaching microbiology at a local college. Dr. Cliff Bannaker is one of the most promising young doctors from Stanford. He was under the mentoring of the deceased Professor Oppenheimer. He is a son of Los Angeles store owners, who are both are college degree holders. He has been in the laboratory for three years being hired under the recommendations of Professor Oppenheimer. The laboratory is staffed with a few post – doctorate degree holders and two laboratory technicians. The doctor’s are Dr. Robin Drecker, Dr. Xiang Feng, Dr. Prithwish and the man who created the virus Dr. Cliff Bannaker. Their qualified laboratory technicians are Aidan and Natalya. The RVS was first introduced by Bannaker during his entry in the laboratory. He was given the opportunity to do his research. Such project initially showcased high potential for turning cancer cells into normal ones but it is worthy to note that this was not the only research done within the laboratory. However, even if this one has the highest prospect, there was a failure on the initial experiment with live subjects. With such, the directors had advised Bannaker to stop his experiment on RSV and work with fellow doctor Drecker, who is also Bannaker’s girlfriend. However, with intractable spirit (or frankly insubordination), Bannaker continued to inject live subjects, in this case- mice, with the virus. The RSV’s second attempt found several nude mice, which are those that do not have hair due to some disorder, that did not have the cancerous tumors after the injection of RSV. This was found by Dr. Feng who is the laboratory’s record keeper and the co-director Mendelssohn. The initial reaction is to ‘hide’ this from the director Glass. Nevertheless, this was also subsequently revealed. The restless but close to unproductive laboratory, with contagious glee probably from their director, eagerly proceeded with an announcement. With whirlwind speed, the research findings were published in a scientific journal, Nature. The laboratory gained publicity and funding for the venture. Consequently, the laboratory started its own quandary. The doctors who tried to replicate the results were unsuccessful. Thus, suspicion ignited in each in every doctor who tried unsuccessfully. The suspicions of the issue went into a full-blown investigation complete with Congressional hearing, wherein one of the doctors of the same laboratory became, so to speak, the whistle-blower of the whole charade. Drecker was also accused of holding professional jealousy against the people who strongly (though baselessly) believed in the work of Bannaker. At the same manner, such actions of the laboratory elicited commentary from the whole medical field. Not to mention, those in politics, in business as well as all people connected with what happened and the general public. How the ‘R – 7 Scandal’ violated Ethics in Research The whole ‘R – 7 scandal’ is composed of ethical and moral violations that deserve to be scrutinized both from the researchers’ ethical standards and from the perspective of the general public. Researchers have ethical standards that are built as a two way shield, as a protection for the general public and as flight leverage for the researchers. When researchers conduct certain studies, there are sets of ethical guidelines that should be followed. Although different field of studies have different sets of guidelines, there are still parallelism in such that every research should follow. Bannaker is probably an honest researcher who did not have the heart for a failed research. Honesty is a major ethical issue with the ‘R – 7 Scandal’ where the truth about the whole issue may never be entirely given light, or perhaps there will still be doubts as to the real occurrence of the whole fiasco. Not only did Bannaker twisted honestly but it also has something to do with the directors, Mendelssohn and Glass. Mendelssohn and Glass are the directors of the laboratory and their honesty is a very crucial for the integrity of the researches done under their leadership. They have the bestowed responsibility to make sure that the results are not manipulated in a dishonest way. Such actions have compromised not only themselves, but all the past and current researches done by the staff under their command. This leads to yet another issue of carefulness. Whether the scandal is a product of carelessness or dishonesty, all that are responsible have still forgotten to take into consideration this ethical virtue. As a result, irresponsible publication is observed. Responsible publication should be in line with the researchers’ openness to the results of their studies, as well as, to gear towards advancement of the field. Bannaker have apparently underestimated Drecker where some reports have said that prior to the deemed termination of Bannaker’s RSV, he was already asked to help Drecker in her research. However, Bannaker refused for unconfirmed reason where he thinks of her research as not ambitious enough. That alone is a breach of research ethics in terms of respecting one’s colleague in terms of their work. Responsible mentoring, that should also been practiced by Mendelssohn and Glass, have also failed miserably. They have forgotten to follow procedures like replicating the study just to make sure that the results are both conclusive and reliable. Apparently, key players of the scandal have all been seduced by the fame, honor and the seemingly ‘infinite’ grants for the laboratory. At the same time, Drecker, whether her intentions are due to integrity or to professional jealousy, her respect for the truth is ambiguous. In addition to this, researches now also possess legal values. Remember that anything anyone does is under laws and regulations. Consequently, such actions should be appended with legality. The same is true for those who are soliciting for grants or funding from various institutions. How the general public is mislead The public who had high hopes of finding the cure for cancer has been disappointed. In UK alone, there are approximately 289,000 people who are diagnosed with cancer every year, according to Cancer Research UK. Furthermore, there are 150,000 cancer deaths each year which actually boil down to an estimated one death every four minutes. Imagine how many people became disheartened by the revelation that the RSV is a hoax. Social responsibility is a research ethic that should have been treated with respect. Lives are being played at as well as emotions, not only of the people with cancer but the families and friends as well. Thus, nobody have the right to have been as irresponsible as what have happened in the research failure. Clearly, people have expected more ethics from doctors. Generally, people do not condemn any doctor who are ‘not producing’ any results for their studies. Most are even understanding of such, and in turn are more conscious, respectful and appreciative of those trying to come up with advances especially in the medical field. The general public has such high respect of people who have dedicated their lives for the advancement of our lives. Without such people, the conveniences that are enjoyed today may never have come into being. Nevertheless, with such trust, the doctors – researchers should always take into consideration the people, patients and families alike, they serve and not their personal gains. The actions of the individuals from the Glass-Mendelssohn laboratory have affected the lives of many around the world. The gain only belonged to those who have received the fame, grants and all other benefits associated with it, but the suffering is left to those who had tried to hold on for the sake of the ray of hope shed by the results of the failed study. Indeed, such actions have left more scars of frustrations for the people suffering from cancer as well as their families. Lesson Learned Doctors are also human beings that have rooms for mistakes. The ‘R- 7 Scandal’ is a result of carelessness, hasty decisions and hidden agendas. The whole mess serves as a wake up call both for researchers, politicians, grant agencies and the general public. The world of research should be focused on ethical and moral bases. Grant agencies, on the other hand, should be able to create a reliable system of negotiating with research organization on how these organizations can achieve support from them. Politicians should also be able to find more ways for some research laboratories to have funding so that such laboratories would not depend on grants. Thus, less pressure on ‘producing’ results just to acquire funds for continuing research. The general public should also carry at least an ounce of skepticism to avoid the disappointment brought about by failed researches. Looking into the bright side, the study only reached global fame in terms of the research scandals. However, it has not sickened the otherwise, already sick patients, or worse killed them. Far more damage and responsibility could have been the result of such. Therefore, the whole ‘R – 7 Scandal’ should be a reminder of how every single agency and group of individuals should, at least, carry common honesty, careful planning, untainted agenda and uncorrupted social responsibility in making conclusions. Probably, the next time researchers have discovered a cure for cancer or anything resembling such, they would be more responsible and critical.

The Performance Highlights Of Maruti Suzuki India Limited Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1690 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? INTRODUCTION I am going to represent my home country one of the car production company Maruti Suzuki India Limited it normally known as Maruti Udyog limited is a subsidiary of Suzuki Motor Corporation. Japan, MSIL has been the leader of the Indian car market for over two and a half decades. The company manufacturer plant located at Gargaon and Manesar, south of new delhi.this manufacture plant produce over the million of car unites annually .just before 2 month ago company issue its own articles and company CEO announced a further investment RS.1700 cr.(17 billion)for annually car unit production 26,000 units. Don’t waste time! Our writers will create an original "The Performance Highlights Of Maruti Suzuki India Limited Finance Essay" essay for you Create order The maruti Suzuki company has car production 13 brands over 152 different variety across maruti Suzuki 800,omni and also international brands Alto and Wagon R,Swift ,A-star, Ritz and Estilo,off -roader car like Gypsy,suv Grand vitara,sedands Sx4 and swift Dzire and the newest entrant Eeco. The director and managing executive officer and admin MR.HIROFUMI NAGAO and company secretary and chief legal officer MR.ANIL RUSTGI those both spokesman said at the end of the financial year march 2010 maruti Suzuki had a market share 53.4%of Indian passenger car market.maruti Suzuki pvt ltd.company one of the largest company in asia.they sold a record 10, 18,365 vehicles in the current year 2009-10 including 1, 47,575 car units of exports outside India. The company managing director and CEO (chief executive officer) MR. SHINZO NAKANISHI said past decades in the year 2003-04 company net sales was RS.93,456 million. That was boundary by year 2004-05 in net sales 109,105 million .and in 2006-07 R S.145, 922 million and year 2007-08 maruti Suzuki net sales was RS.178, 603 million. The company revenue posted of RS.301, 197 million. Last two year CAGR is 27% of net sales. The company is listed on Bombay stock exchange and national stock exchange .the Company has over 8000 employees on its rolls. The government of Japan has honoured maruti Suzuki with the METI award for promotion of Japanese brand in India. Maruti Suzuki is one of company got the best sold car prestigious award. TO: Financial Controller FROM: Management Accountant Subject: Analysis of Maruti Suzuki Pvt ltd. Maruti Suzuki Pvt ltd.with substantial amount of car production, our main consideration has to be the ability of the company to pay for these good on time to answer this we need to consider two key aspects of their financial statements. And we have to find out what their current liquidity position is and what are the longer term prospects (profitability) for the company? It must be noted, howev er that the financial data provided in the accounts relates to the past whereas these two aspects relates to the presents and future. We shall have to use past data to help predict the future. PERFORMANCE HIGHLIGHTS SALES: Maruti Suzuki recorded in highest sales in India over 4.72 lac vehicles in the domestic and exports markets which resulted in gross sales revenue of RS.112,840 million in the term of view company growth sales 25.8% over 2002-03.that figure indicated that was highest sale in growth in the last 7 years. EARNING PER SHARE: Company doing well progress in High volume of sales in car market. With importance improvement in operational efficiencies, has translated into much higher returns on investment in Earning per Share (EPS) more than RS.5.14 in 2002-03 to RS.18.77 IN 2003-04 LIQUIDITY: The current situation has risen from 1.5 to 1.9 while the acid test has failure 1.25 to 0.72.these are not high ratio like both current and acid one but not unusual for car manufacturing companies. However, the upward trend masks a potentially difficult situation because inventories (stock) have increased 1.48 % significantly. Mean while sundry debtors downturn trend masks a potentially fin ancial situation decreased 0.88% significantly. To financial condition increased and decreased .The Maruti Suzuki ltd now has been secured loans and unsecured loans and some long term debt for the first time. These all situations give some cause for concern, though not alarm. If possible further details are needed as to why debtors have increased by 1 %(0.88% so nearly expected) resulting in an additional 5 days (13 days -18 days) credit being offered to the customer similarly, we need to know why stock levels have risen by nearly 1.48% and stock has been lying around the warehouse for an extra 4 days (19-15) this year. PROFITABILITY: The profit and loss account shows that gross sales have upward slightly but Excise duty is more liabilities in both year and given a impact of inflation, it is likely that the volume of sales has in fact increased. Gross profit in year 2007 is 0.95% while in the year 2008 gross profit is 0.94%.so 0.1% decreased in compared to both year. Than Net pro fit (operating) in same level in both years like 0.17%.and retain on capital employed in the year 2007 1.42% and in the year 2008 4.88% so increased by 3.46%. All three profitability ratios have dropped significantly perhaps suggesting one of the following: Maruti Suzuki pvt ltd car productions are past their sell by date. More achieved stock are building up and customer have been offered improved payment s terms is an attempts to attract business. A few major customer are in difficulty and they neither paying on time instalments. Many time car insurance company providing one year free insurance those who loyalty customer. But after one year they cancelled insurance. This could be happen temporary and permanent. Maruti Suzuki company has international brand car importing and exporting all over the world so intense competition from overseas has caused a reduction in the selling price and, despite this, maruti Suzuki to selling car more and more via advertising and best se rvice to providing to product because of stock level are rising. It should also be noted that the proposed dividend has risen whilst have fallen. Does this indicate confidence in the future or is it an attempt to divert attention from the current poor results. SUMMARY: The review does not reveal a thriving company but, without further information, it is hard to decide whether the situation is so bleak that you would seriously consider not supplying maruti Suzuki with their goods. Perhaps initial trading could be done on a cash basis before we felt secure enough to offer credit payments terms. Furthermore, it would be unwise for us to make any huge internal investments (purchase of machinery) until we have a bit more confidence about the long -term future of maruti Suzuki pvt ltd. On the basis of 2005-06 profit and loss accounts shown the company has not taken any loan, secured or unsecured also company registered under act section 301.the company borrowed from government en d of the year balance of such loans aggregates of rupees 639 million and rupees 538 million respectively. The company has losses as at march 31, 2005 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. Analysis -Key % Movement for the (2007/2008) Sales increase of 1.10% (124814/113465) Cost of sales increase of 1.11% (120034/109108) These all calculated amount explain to us gross profit is high volume. Operating Expenses increase of 1.10% (106320/96653) Depreciation increase of 0.62% (2854/4568) Interest Expenses in year 2005 was 360 and 204 in 2006.so different 156 interests is increased better than last year. So company wasnt taken any loan, borrowed money from outsider source. Stock Increased of 1.32% (8812/6666) Debtors Increased of 1.09% (6548/5995) Company stock increased with 1.32% but company liabilities increased with 1.09%.so this figure indicate no any investment needed end of the year 2006. Analysis -key % Movement For the (2008/2009) Sales increase of 1.23% (188,238/152,523) Cost of sales increase of 1.22% (178,603/145,922) This figure tells us immediately that the gross profit level will be so good. Operating expenses increase of 1.28% (160,045/124,771) Depreciation increase of 2.09% (5682/2714) Increase of 2.03% (6278/3090) Both increase exceeded the sales % increase and therefore the net margin will be poorer than the previous year. Interest expenses last year 376 but this year 596.so different 220 interests is increase better that last year. So company doesnt need using borrowed monies to finance the business. Stock increase of 1.48% (10380-7014) Debtors increase of 0.88% (6555-7474) Company stock increase with 3366 (10380-7014) but this year liabilities decrease with 919 (6555-7474).so this figure indicated where additional investment has been needed. The other significant movement from the balance sheet is in the cash/liquidity position. And also positive cash from last ye ar been replaced by a bank loan this year. Links in to the interest payment shown on the profit and loss account. Ratio 2009 2008 Profitability Gross profit 0.94% (178603/188238) 0.95 (145922/152523) Net Margin 0.17% (31308/188238) 0.17% (25888/152,523) ROCE 4.88 %( 31308/2722+3695) 1.42 % (25888/13326+4905) Liquidity ratio 🙠 Short term Solvency) Current ratio 1.9:1 (30909/28187) 1.5:2 (38341/25015) Acid test Quick Ratio 0.72:1(30909-10380/28187 1.25:2(383417014/25015) Efficiency Ratio: Stock turnover 19 days (10380X365/209493) 15days (7014X365/171442) Debtors collection period 12.71 (13 days) 17.88(18 days) (6555X365/188238) (7474X365/152523) Creditors payment 42.67 (43 days) 42.81(43 days) (24492X365/209493) (20110X365/171442) Capital structure: (long term solvency) Gearings 3.90% 6.40% Borrowed capital X100/total capital (3695 X 100/94857) (4905 X 100 /76522) Interest cover: PBIT /interest 53 Times (31308/596) 69 Times (25888/376) Dividend cover: PAT /dividends 11.97 %( 17308/1445) 12.01 %( 15620/1300) Debt Ratio: 0.22% 0.24% Fixed assets +Investment +Current assets/Current liabilities and provisions.) (40,328+51,807+30,909/28,187) (29,104+34,092+38,341/25,015) Ratio 2007 2008 2005 2006 PROFITABILITY Gross profit 0.94% 0.95% 0.95% 109770/114981 0.95% 91296/95976 Net margin 0.17% 0.17% 0.16% 18542/114981 0.14% 14083/95976 ROCE 4.88% 1.42% 1.35% 18542/13640 2.89% 14083/4871 LIQUIDITY: Current ratio 1.9:1 1.5:2 1.8:2 29720/16080 1.3:1 20189/15318 Quick ratio 0.72:1 1.25:2 1.43:1 29720-6666/16080 1.04:1 20189-4398/15138 EFFICIENCY RATIO: Stock Turnover 19 Days 15Days 14 Days 21 Days Debtor collection period 12.71(13 Days) 17.88(18 Days) 18.82(19 Days) 20.2(20 Days) Creditors payments 42.67(43 Days) 17.88(18 Days) 29 Days 32 Days CAPITAL STRUCTURE Gearing Ratio 3.90% 6.40% 7.20% 8.30% Interest Cover 53 Times 69 Times 50 Times 18140/360 32 Times13805/434 Dividend cover 11.97% 12.01% 14.76% 8536/578 12.51% 5421/433 Debt ratio 0.22% 0.24% 0.25% 0.28% BIBLOGRAPHY AND REFERENCES Business Finance (Theory and practice) Eddie McLan university of Plymouth business school www.pearson.co.uk seventh Edition Financial management (Theory and Practice) Eugene F. Brigham (university of Florida,) Michael C.Ehrharat (university of Tennessee). Principles of Money, Banking and Financial Market (12th Edition) Lawrence S.Ritter (Late New York University) William L.Silber (New York university) Gregory F. UDELL (Indiana university). Brealey Mcuers (Principles of corporate Finance) McGraw Hill Richard A. Brealey (Emeritus Professor of Finance, London Business School) Stewart C. Myers (Gordon Y.Billard Professor of Finance Sloan School of management Mcissachusells institutes of Technology) INVESTMENTS (Seventh Edition) Zvi Bodie (Boston University) Alex Kane (university of California, San Diego) Alan J.Marcus (Boston College) Financial Theory and Corporate Policy Thomas E.copeland (managing director of finance dept., Cambridge) J.fred.Weston (university of Calif ornia at Los Angeles) Kuldeep Shastri (University of Pittsburgh) www.investopedia.com/university/ratio www.thetimes100.co.uk//theroy-ratio-analysis-301.php Annual Report of Maruti Suzuki www.marutisuzuki.com/annual-report-newroom.aspx Maruti Suzuki India Directors Report, Maruti Suzuki www.moneycontrol.com Maruti Suzuki Ltd 2(1)-Annual Report Analysis. www.scribd.com/Annual-Report-Analysis-Maruti-Suzuki-Ltd-2-1 www.wikinvest.com/stock/maruti_suzuki_india_(BOM:532500)