MEENAKSHI ACADEMY OF HIGHER

EDUCATION AND RESEARCH

CHENNAI-78

REGISTER NO: 33150016

Certified bonafide record of work done by V. MAYURI during the

year 2017-2018

Signature of the Student Signature

of Head of

Department

Internal Examiner External

Examiner
 INSTITUTIONAL TRAINING REPORT

WHEELS INDIA LIMITED

V. MAYURI

Reg No: 33150016

Under the guidance of

Mrs. Ambika

Project Report

Submitted to the
MEENAKSHI ACADEMY OF HIGHER EDUCATIN AND RESEARCH

DEPARTMENT OF COMMERCE

(COPORATE SECRETARYSHIP)

In partial fulfilment of the requirement

For the award of the degree

Bachelor of Commerce- Corporate Secretaryship

MEENAKSHI ACADEMY OF HIGHER EDUCATION AND RESEARCH

FACULTY OF HUMANITIES AND SCIENCE

JANUARY 2018
 TABLES OF CONTENTS

CHAPTER CONTENTS PAGE NO

1 Importance of Training

2 Introduction
3 Company profile

4 Memorandum of association

5 Article of association

6 Prospectus

7 Product profile

8 Board of directors

9 Organizational structure

10 Office layout and equipment

11 Department

12 Achievement of the company

13 Ratio analysis

14 Conclusion

15 Bibliography

16 Annexure
IMPORTANCE OF
TRAINING
The Importance of Training

Training is crucial for organizational development and success. It is fruitful to

both employers and employees of an organization. An employee will become
more efficient and productive if he is trained well.
Training is given on four basic grounds:

1. New candidates who join an organization are given training. This training
familiarize them with the organizational mission, vision, rules and
regulations and the working conditions.
2. The existing employees are trained to refresh and enhance their
knowledge.
3. If any updations and amendments take place in technology, training is
given to cope up with those changes. For instance, purchasing a new
equipment, changes in technique of production, computer implantment.
The employees are trained about use of new equipments and work
methods.
4. When promotion and career growth becomes important. Training is given
so that employees are prepared to share the responsibilities of the higher
level job.

The benefits of training can be summed up as:

1. Improves morale of employees- Training helps the employee to get job

security and job satisfaction. The more satisfied the employee is and the
greater is his morale, the more he will contribute to organizational success
and the lesser will be employee absenteeism and turnover.
2. Less supervision- A well trained employee will be well acquainted with
the job and will need less of supervision. Thus, there will be less wastage
of time and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack
knowledge and skills required for doing a particular job. The more trained
an employee is, the less are the chances of committing accidents in job
and the more proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during
training. They become more eligible for promotion. They become an
asset for the organization.
5. Increased productivity- Training improves efficiency and productivity
of employees. Well trained employees show both quantity and quality
performance. There is less wastage of time, money and resources if
employees are properly trained.
 WAYS/METHODS OF TRAINING

1. On the job training- On the job training methods are those which are
given to the employees within the everyday working of a concern. It is a
simple and cost-effective training method. The inproficient as well as
semi- proficient employees can be well trained by using such training
method. The employees are trained in actual working scenario. The motto
of such training is “learning by doing.” Instances of such on-job training
methods are job-rotation, coaching, temporary promotions, etc.

2. Off the job training- Off the job training methods are those in which
training is provided away from the actual working condition. It is
generally used in case of new employees. Instances of off the job training
methods are workshops, seminars, conferences, etc. Such method is
costly and is effective if and only if large number of employees have to
be trained within a short time period. Off the job training is also called as
vestibule training,i.e., the employees are trained in a separate area( may
be a hall, entrance, reception area,etc. known as a vestibule) where the
actual working conditions are duplicated.
INTRODUCTION
 COMPANY PROFILE

Wheels India Limited is company promoted by the TVS Group, India’s

largest auto component manufacture. Starting with a bus service in 1911, the
TVS Group has grown to become one of India’s largest business houses with
business in two wheelers, vehicle dealerships & logistics and auto components
which had a turnover of over USD 7 Billion (FY 2012-13).

Wheels India (Established in 1962) is one of the largest steel wheel

manufactures in the world. The Company had turnover of USD 375 Million
(FY 2012-13) coming from the segments of Cars/ UVs, Commercial vehicles,,
Tractors, Single Piece wheels and Construction & Earth Mover wheels. The
company also manufactures air suspension kits for trucks and buses. With over
15% of its turnover coming from exports, particularly from the Construction &
Earth Mover equipment segment, it is truly a global player in the auto
components industry.

HISTORY & MILESTONE

 Year 1960 Wheels India Factory

 Year 1962 Start of Production - Commercial Vehicle Wheels(Truck)
 Year 1966 Start of Production - Low Pressure Wheels (Passenger Car)
 Year 1968 Start of Production - Agricultural Tractor Wheels
 Year 1974 Supplies to Hindustan Motors - Construction Equipments
 Year 1982 Start of Production - Wire Wheels
 Year 1982 Start of Production - Rampur Plant
 Year 1986 Start of Production - Air Suspension
 Year 1988 Start of Production - Tubeless Truck Wheels
 Year 1993 Supplies to CAT (Earth Moving Wheels)
 Year 1996 ISO 9001 Certification
 Year 1996 Start of Production - Exports & Across the Globe
 Year 1997 Start of Production - Pune Plant
 Year 2003 ISO 14001 Certification
 Year 2004 ISO / TS 16949 Certification
 Year 2004 Start of Production - Forged Aluminum Wheels
 Year 2005 Ford Q1/Global Excellence Award
 Year 2006 Maruti Suzuki India Ltd - Vendor Performance Award
 Year 2006 Start of Production - Bawal Plant
 Year 2007 Toyota Best Quality Supplier Award
 Year 2007 Start of Production - Sriperumbudur Plant
 Year 2009 CAT SQEP Silver Certification
 Year 2009 Start of Production - Pantnagar Plant
 Year 2010 Start of Production - Deoli Plant - Heavy Engineering
Divison
 Year 2010 TPM Excellence Award
 Year 2010 Start of Production - Energy Equipment Parts Divison
 Year 2012 NABL Accreditation - ISO / IEC 17025:2005 - Mechanical /
Chemical
 Year 2012 CAT SQEP Gold certification
COMPANY
PROFILE
 COMPANY PROFILE

Wheels India started production of wheels for commercial vehicles in 1962

at our plant in Padi, Chennai. The company started the production of car and
tractor wheels in Padi in 1965. In 1972, the company made a foray into the
construction equipment sector with Hindustan Motors (now CAT India). In
1982, the company opened its second facility in Rampur for tractor wheels.
Wheels India entered the wire wheel business in 1988 and also entered the air
suspension market under the brand “WILRIDE”. In 1998, the company opened
a facility in Pune to cater to this growing automotive hub. This facility
manufactures wheels for car, trucks and busses.

The 2000s represented a decade of growth for the company and 2000 marked
its entry to the earth mover market with 35” and 49” wheels. In 2005 the
company started manufacturing forged aluminum wheels to cater to the growing
after market for truck and trailer manufacturers. 2007 marked the setup of 2 new
facilities in Sriperumbudur for Big EM wheels and Bawal for car wheels. In
2009 the company setup a new facility in Pantnagar to cater to the growing
truck and light commercial vehicle business.

Wheels India is a partner to various Global OEMs like Ford, Hyundai, Tata,
Caterpillar, John Deere, Komatsu, Hyundai Heavy Industries, Case New
Holland, Leyland, Tafe and Suzuki. The company has won various awards
which stand as a testament to its “Quality First” policy, to name a few – CAT
SQEP Silver Certification 2010, TPM Award & Certification, Toyota Supplier
Award for Quality & Cost ’09 and Regional Contribution Award from Toyota
in 2013 Global Suppliers Convention.

The company believes that its future lies in partnering OEMs in their growth
and providing service to match. Wheels India has Launched aftermarket brand
“TVS WILGO” for catering aftermarket needs in 2012.
MEMORANDUM
OF
ASSOICATION
 Memorandum of Association (MOA)

Memorandum of Association (MOA) is a legal document which is prepared in

the formation and registration process of a limited liability company. It is called
the charter of the company.

Memorandum of Association (MOA) defines the company’s relationship with

its shareholders. It is the most important document of a company as it states the
objects of the company for which it is formed. It also contains the powers of the
company within which it can act.

The business that a company carries on is made according to the Memorandum

of Association of the company. A company can carry on only those activities
which are stated in the memorandum of association and to carry on any activity
which is not stated in the memorandum of association, it has to alter the
Memorandum of Association.

Memorandum of Association (MOA) includes five different clauses as

mentioned below:

 Name Clause
 Situation Clause
 Object Clause
 Liability Clause
 Capital Clause
 Subscription Clause

Name Clause
The name of the company is its first unique identity. Thus the name clause of
the memorandum consists of the authentic name of the company approved by
the registrars.

Situation Clause
The situation clause comprises of all possible details of the registered office of
the company. It has the name of the state of the registered office and may and
may not have the exact address of the office. It also has the names of the
registrars enrolled.

Object Clause
Object Clause is the main body of the memorandum. It provides a list of all the
operations of the country. Every motive and operation the company indulges in
must be mentioned in the object clause. Also, any such operation which is not
mentioned in the object clause is considered to be beyond the reach of the
company.

Liability Clause
Liability Clause mentions the liability of every member of the Company. It
simply states that every member of the company has a limited liability. Thus,
irrespective of the financial state of the company, no member can be told to pay
more than the amount that remains unpaid on his shares.

Capital Clause
This clause mentions the share capital with which the company is registered.

Association Clause
This clause states that it is mandatory for every subscriber to subscribe to at
least one share of the company. Each and every subscriber has to fill
subscription clause and also sign it. The subscription clause also requires
a witness. Witnesses can be one or multiple.
 ARTICLES OF
ASSOTCIATION
 Articles of Association (AOA)

Articles of Association is a document which prescribes the rules and bye-laws

for the general management of the company and for the attainment of its object
as given in the memorandum of association of the company. It is a document of
paramount significance in the life of a company as it contains the regulations for
the internal administration of the company’s affairs.

Contents of Articles of Association

Section 5(1) and section 5(2) of the Companies Act, 2013 provide for the
contents of the articles of association. The articles must contain the regulations
for the management of the company along with the matters prescribed by the
Central Government. Further, the articles of association must also contain the
following:

1. Share capital including sub-division, rights of various shareholders, the

relationship of these rights, payment of commission, share certificates.
2. Lien of shares: Lien of shares means to retain possession of shares incase
the member is unable to pay his debt to the company.
3.
4. Calls on shares: Calls on shares include the whole or part remaining
unpaid on each share which has to be paid by the shareholders on the
company’s demand.
5. Transfer of shares: The articles of association include the procedure for
the transfer of shares by the shareholder to the transferee.
6. Transmission of shares: Transmission includes devolution of title by
death, succession, marriage, insolvency, etc. It is not voluntary but is in
fact brought about by operation of law.
7. Forfeiture of shares: The articles of association provide for the forfeiture
of shares if the purchase requirements such as paying any allotment or
call money, are not met with.
8. Surrender of shares: Surrender of shares is when the shareholders
voluntary return the shares they own to the company.
9. Conversion of shares in stock: In consonance with the articles of
association, the company can convert the shares into stock by an ordinary
resolution in a general meeting.
10.Share warrant: A share warrant is a bearer document relating to the title
of shares and cannot be issued by private companies; only public limited
companies can issue a share warrant.
11.Alteration of capital: Increase, decrease or rearrangement of capital must
be done as the articles of association provide.
12.General meetings and proceedings: All the provisions relating to the
general meetings and the manner in which they are to be conducted are to
be contained in the articles of association.
13.Voting rights of members, voting by poll, proxies: The members right to
vote on certain company matters and the manner in which voting can be
done is provided in the articles of association.
14.Directors, their appointment, remuneration, qualifications, powers and
proceedings of the boards of directors meetings.
15.Dividends and reserves: The articles of association of a company also
provide for the distribution of dividend to the shareholders.
16.Accounts and Audits: The auditing of a company shall be done subject to
the provisions of the articles of association of the company.
17.Borrowing powers: Every company has powers to However, this must be
done according to the articles of association of the company.
18.Winding up: Provisions relating to the winding up of the company finds
mention in articles of association of the company and must be done
accordingly
PROSPECTUS
 PROSPECTUS

After the receipt of certificate of incorporation, if the promoters of a public

limited company wishes to issue shares to the public, he will issue a document
called prospectus. It is an invitation to the public to subscribe to the share
capital of the company. The companies Act, 1956 defines prospectus as any
document described or issued as a prospectus and include any notice, circular,
advertisement or other documents inviting deposits from the public or inviting
offer from the public for the subscription of shares. It is circulated among the
public in printed pamphlets. It gives all necessary information about the
company so that the prospective shareholders may fully understand the
objectives and the plans of the company.

Contents:

The following important matter are included in the prospectus:

1. The prospectus contains the main objectives of the company, the name and
addresses of the signatories of the memorandum of association and the number
of shares held by them.

2. The name, addresses and occupation of directors and managing directors.

3. The number and classes of shares and debentures issued.

4. The qualification share of directors and the interest of directors for the
promotion of company.

5. The name and addresses of the vendors of any property acquired by the
company and the amount paid or to be paid.

6. Particulars about the directors, secretaries and the treasures and their
remuneration.

7. The amount for the minimum subscription.

8. If the company carrying on business, the length of time of such businesses.

9. The estimated amount of preliminary expenses.

10. Name and address of the auditors, bankers and solicitors of the company.

11. Time and place where copies of balance sheets, profits and loss account and the
auditors report may be inspected.

12. The auditor’s report so submitted must deal with the profit and loss of the
company for each year of five financial years immediately preceding the issue
of prospectus.

13. If any profit or reserve has been capitalized, the particulars of such
capitalization will be stated in the prospectus.
PRODUCT
PROFILE
 PRODUCT PROFILE

HEAVY VEHICLE WHEEL

Feature of Heavy Vehicle Wheel

Wheels for Heavy Vehicles (Trucks, Buses, Light Commercial Vehicles,

Trailers, Tippers etc.)

Capability to manufacture:

Tube and tubeless type applications.

Single, two and three piece wheels available.
Disc wheels and De mountable wheels.
Hub and stud piloted.
Patented rim design fully optimized for severe operating conditions

BUS SUSPENSION MEDIUM

COMMERCIAL VEHICLES

FTS 6 – SERIES
FTS 8 –5 SERIES
FTS 8 – 4 SERIES
FTS 8 – 4 SERIES LF
FTS 8 – 5 SERIES ND
RLS 11 – OL SERIES
RLS 12 – O SERIES
RLS 12 – U SERIES
RLS 11.5 – ULX SERIES
RLS 12 – HK SERIES
RLS 12 – IL SERIES
RLS 16 – MAB SERIES
LIGHT COMMERCIAL VEHICLE

RTS 1.5 – Z SERIES

RTS 2 – U SERIES

RTS 6 – U SERIES

RTS 6 – U SERIES HD

RTS 6 – U SERIES

RTS 8 – U SERIES
ENERGY EQUIPMENTS PARTS DIVIDIONS
Energy equipment parts division is a division of Wheels India Ltd. engaged in
manufacturing components for Energy Equipments like Wind Turbines and
machined components for various other application.

Office Padi, Chennai – 600050.INDIA

Padi, Chennai – 600 050, Tamilnadu, India, Phone : 91-044-
Factory
6258511, Fax : 91-044-6257121.
Phone |
+91 44 26234377
Land
Fax +91 44 26257375
Contact M. S. Suresh – Manager – Projects & Sales
Email sureshms@wheelsindia.com
Website www.wheelsindia.com
 MANAGEMENT
AND
ADMINISTRATION

MANAGEMENT AND ADMINISTRATION

Through the process of incorporation companies are set up as separate legal
entities from their owners, the shareholders. In large companies the shareholders
could be made up of a large number of private investors, pension funds, hedge
funds and investment banks. It would not be possible for such a large and
diverse group to effectively manage the business. Instead they
appoint directors to run the company on their behalf. This is referred to as the
separation of ownership and control.

In order to ensure that the company is run in the best interests of the owners,
and to ensure that good management practice is applied to such potentially large
and complex organizations, there are a number of laws, regulations and
principles that recommend and enforce good management practice and
company administration. Areas of particular focus include:

 directors responsibilities and duties

 company secretaries
 the requirement for the financial statements to be audited
 company meetings
 resolutions
 corporate governance
 fraud

BOARDS OF DIRECTORS

S RAM CHAIRMAN

SRIVATS RAM MANAGING DIRECTOR

S VIJI DIRECTOR

S PRASAD DIRECTOR

T S VIJAYARAGHAVAN DIRECTOR

AROON RAMAN DIRECTOR

PAUL REITZ DIRECTOR

B SANTHANAM DIRECTOR

CMB AKERS DIRECTOR

BHARATI RAO DIRECTOR

COMMITTEES OF THE BOARD OF DIRECTORS

AUDIT COMMITTEE

MR S PRASAD CHAIRMAN
MR S VIJI
MR T S VIJAYARAGHAVAN
MR AROON RAMAN
STAKE HOLDERS RELATIONSHIP COMMITTEE
MR S VIJICHAIRMAN
MR S RAM
MR S PRASAD

NOMINATION & REMUNERATION COMMITTEE

MR S PRASAD CHAIRMAN
MR AROON RAMAN
MR VIJAYARAGHAVAN
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
MR SRIVATS RAM CHAIRMAN
MR S VIJI
MR S PRASAD
MR AROON RAMAN
DEPARTMENTS
DEPARTMENTS

Production Department

The production department orders inventory for production when needed,

fulfills production orders specified by management and coordinates with the
marketing and advertising department to make changes to products. If your
company builds electric guitars, for example, you need a production department
and staff that focuses solely on producing your guitars.

Sales Department

Sales departments are needed in companies that sell retail or wholesale items to
other businesses or consumers. Sales departments coordinate their sales force to
build customer relationships, meet particular revenue goals and pitch new
products. The sales force may use a "push" or a "pull" method for attracting
customers. The pull method typically involves placing a salesman in a physical
store to sell products. Sales departments using the push method usually instruct
their sales force to call, email or visit prospective customers.

Accounting Department

An accountant performs financial functions related to the collection, accuracy,

recording, analysis and presentation of a business, organization or company's
financial operations. The accountant usually has a variety of administrative
roles within a company's operations. In a smaller business, an accountant's role
may consist of primarily financial data collection, entry and report generation.
Middle to larger sized companies may utilize an accountant as an adviser and
financial interpreter, who may present the company's financial data to people
within and outside of the business. Generally, the accountant can also deal with
third parties, such as vendors, customers and financial institutions.
 Secretarial department
Definition
According to the companies Act,1956 “a company secretary means
company secretary as defined under the Company Secretaries Act includes any
other individual possessing the prescribed qualification and appointed to
perform the duties by a secretary under this Act or any other ministerial or
administrative duties”.
A Company Secretary is a senior position in a private sector company or
public sector organisation, normally in the form of a managerial position or
above. In large American and Canadian publicly listed corporations, a company
secretary is typically named a Corporate Secretary or Secretary.

ROLE AND DUTIES OF A COMPANY SECRETARY:

Companies law requires only a listed company to have a whole time secretary
and a single member company (any company that is not a public company) to
have a secretary.

The secretary to be appointed by a listed company shall be a member of a

recognized body of professional accountants, or a member of a recognized body
of corporate / chartered secretaries or a person holding a masters degree in
Business Administration or Commerce or is a Law graduate from a university
recognized and having relevant experience. However, the company secretary of
a single member company shall be a person holding a bachelor degree from a
university recognized.

The duties of a company secretary are usually contained in an “employment

contract”. However, the company secretary generally performs the following
functions:-

Functions of secretary:

(1). Secretarial functions:

 To ensure compliance of the provisions of Companies Law and rules
made there-under and other statutes and bye-laws of the company.
 To ensure that business of the company is conducted in accordance with
its objects as contained in its memorandum of association.
 To ensure that affairs of the company are managed in accordance with its
objects contained in the articles of association and the provisions of the
Companies Law.
 To prepare the agenda in consultation with the Chairman and the other
documents for all the meetings of the board of directors.
 To arrange with and to call and hold meetings of the board and to prepare
a correct record of proceedings.
 To attend the broad meetings in order to ensure that the legal
requirements are fulfilled, and provide such information as are necessary.
 To prepare, in consultation with the chairman, the agenda and other
documents for the general meetings.
 To arrange with the consultation of chairman the annual and
extraordinary general meetings of the company and to attend such
meetings in order to ensure compliance with the legal requirements and to
make correct record thereof.
 To carry out all matters concerned with the allotment of shares, and
issuance of share certificates including maintenance of statutory Share
Register and conducting the appropriate activities connected with share
transfers.
 To prepare, approve, sign and seal agreements leases, legal forms, and
other official documents on the company’s behalf, when authorised by
the broad of the directors or the executive responsible.
 To advise, in conjunctions with the company’s solicitors, the chief
executive or other executive, in respect of the legal matters, as required.
 To engage legal advisors and defend the rights of the company in Courts
of Law.
 To have custody of the seal of the company.
(2). Legal obligations of secretary:

 Filling of various documents/returns as required under the provisions of

the Companies Law.
 Proper maintenance of books and registers of the company as required
under the provisions of the Companies Law.
 To see whether legal requirements of the allotment, issuance and transfer
of share certificates, mortgages and charges, have been complied with.
 To convene/arrange the meetings of directors, on their advise.
 To issue notice and agenda of board meetings to every director of the
company.
 To carry on correspondence with the directors of the company on various
matters.
 To record the minutes of the proceedings of the meetings of the directors.
 To implement the policies formulated by the directors.
 To deal with all correspondence between the company and the
shareholders.
 To issues notice and agenda of the general meetings to the shareholders.
 To keep the record of the proceedings of all general meetings.
 To make arrangement for the payment of the dividend within prescribed
period as provided under the provisions of the Companies Law.

(3). To maintain the following statutory books:

 the register of transfer of shares;

 the register of buy-backed shares by a company;
 the register of mortgages, charges etc.;
 the register of members and index thereof;
 the register of debenture-holders;
 the register of directors and other officers;
 the register of contracts;
 the register of directors' shareholdings and debentures;
  the register of local members, directors and officers, in case of a foreign
company;
 Minute books;
 Proxy register;
 Register of beneficial ownership;
 Register of deposits;
 Register of director’s share holding; and
 Register of contracts, arrangements and appointments in which directors
etc are interested.

(4). Other duties:

The company secretary usually undertakes the following duties:

(a) Ensuring that statutory forms are filed promptly.

(b) Providing members and auditors with notice of meeting.

(c) Filing of copy of special resolutions on prescribed form within the specified
time period.

(5). Supplying a copy of the accounts to every member of the company, every
debenture holder and every person who is entitled to receive notice of general
meetings. You must send annual audited accounts.

(6). Keeping or arranging for the having of minutes of directors' meetings and
general meetings.Apart from monitoring the Directors and Members minutes
books, copies of the minutes of board meetings should also be provided to every
director.

(7). Ensuring that people entitled to do so, can inspect company records.For
example, members of the company are entitled to a copy of the company's
register of members, and to inspect the minutes of its general meetings and to
have copies of these minutes.
(8). Custody and use of the common seal.Companies are required to have a
common seal and the secretary is usually responsible for its custody and use.
(Common seals can be bought from seal makers)

THE POWERS OF A COMPANY SECRETARY:

Companies Law allows him to sign the statutory returns and applications.

THE RIGHTS OF A COMPANY SECRETARY:

The rights of a company secretary depend on the terms of his or her contract
with the company. The secretary has no special rights under Companies Law.
ACHIEVEMENTS
OF
THE COMPANY
PADI

ACMA AWARDS EXCELLENCE IN TECHNOLOGY - HOOP DISC

ICQCC'13 AWARD FOR WHEELS INDIA LIMITED FROM TAIWAN

SAP ACE AWARD

IATF 16949 : 2016 FOR LP/CV AND FAW WHEELS

ISO 9001(TS - ATTESTATION OF APPROVAL) FOR EARTH MOVER &

TRACTOR WHEELS

ISO 9001 2015 FOR EARTH MOVER & TRACTOR WHEELS

ISO 9001 2015

ISO 14001 2004 - EMS

ISO-IEC 17025- 2005 -NABL ACCREDITATION FOR IN-HOUSE TESTING

LAB

BS OHSAS 18001:2007 FOR PADI

ALL INDIA ORGANISATIONS OF EMPLOYERS

ISO 9001 : 2015 FOR WIND MILL AND ENGINNERING APPLICATIONS

SRIPERUMBUDUR
ISO TS 16949 (ATTESTATION OF APPROVAL) FOR EM WHEELS
ISO 9001 : 2015
ISO/TS 16949 :2009 FOR AIR SUSPENSION KITS

MARAIMALAI NAGAR
IATF 16949 : 2016
RATIO ANALYSIS
RATIO ANALYSIS
A ratio analysis is a quantitative analysis of information contained in a
company’s financial statements. Ratio analysis is used to evaluate various
aspects of a company’s operating and financial performance such as its
efficiency, liquidity, profitability and solvency.
Ratio analysis is a cornerstone of fundamental analysis.

Financial statement analysis

Financial statement analysis (or financial analysis) is the process of

reviewing and analyzing a company's financial statements to make better
economic decisions. These statements include the income statement, balance
sheet, statement of cash flows, and a statement of changes in equity. Financial
statement analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an
organization.[1]
It is used by a variety of stakeholders, such as credit and equity investors, the
government, the public, and decision-makers within the organization. These
stakeholders have different interests and apply a variety of different techniques
to meet their needs. For example, equity investors are interested in the long-
term earnings power of the organization and perhaps the sustainability and
growth of dividend payments. Creditors want to ensure the interest and principal
is paid on the organizations debt securities (e.g., bonds) when due.

Importance Of Financial Statement Analysis

1. Holding Of Share
Shareholders are the owners of the company. Time and again, they may
have to take decisions whether they have to continue with the holdings of
the company's share or sell them out. The financial statement analysis is
important as it provides meaningful information to the shareholders in
taking such decisions.

2. Decisions And Plans

The management of the company is responsible for taking decisions and
formulating plans and policies for the future. They, therefore, always
 need to evaluate its performance and effectiveness of their action to
realise the company's goal in the past. For that purpose, financial
statement analysis is important to the company's management.

3. Extension Of Credit
The creditors are the providers of loan capital to the company. Therefore
they may have to take decisions as to whether they have to extend their
loans to the company and demand for higher interest rates. The financial
statement analysis provides important information to them for their
purpose.

4. Investment Decision
The prospective investors are those who have surplus capital to invest in
some profitable opportunities. Therefore, they often have to decide
whether to invest their capital in the company's share. The financial
statement analysis is important to them because they can obtain useful
information for their investment decision making purpose.

TYPES OF RATIOS:

1. Liquidity Ratios: liquidity ratios measure a company's ability to pay off its
short-term debts as they come due using the company's current or quick assets.
Liquidity ratios include current ratio, quick ratio, and working capital ratio.

2. Solvency Ratios: also called financial leverage ratios, solvency

ratios compare a company's debt levels with its assets, equity, and earnings to
evaluate whether a company can stay afloat in the long-term by paying its long-
term debt and interest on the debt. Examples of solvency ratios include debt-
equity ratio, debt-assets ratio, and interest coverage ratio.

3. Profitability Ratios: these ratios show how well a company can generate
profits from its operations. Profit margin, return on assets, return on equity,
return on capital employed, and gross margin ratio are examples of profitability
ratios.

4. Efficiency Ratios: also called activity ratios, efficiency ratios evaluate how
well a company uses its assets and liabilities to generate sales and maximize
profits. Key efficiency ratios are the asset turnover ratio, inventory turnover,
and days' sales in inventory.
5. Coverage Ratios: these ratios measure a company's ability to make the
interest payments and other obligations associated with its debts. Times interest
earned ratio and debt-service coverage ratio are two examples of coverage
ratios.

RATIOS

1.The current ratio is a liquidity ratio that measures whether or not a firm has
enough resources to meet its short-term obligations. It compares a
firm's current assets to its current liabilities, and is expressed as follows:

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES

2017 2016
(in Rs.Cr.) (in Rs.Cr.)
Current assets 705.40 649.27
Current Liabilities 597.58 510.25

Ratio 1.180 1.272

INTERPRETATION

The Current ratio for the year 2016-17 & 2015-16

is 1.180 and 1.272.
 800

700

600

500

400 2016 (in Rs.Cr.)

2017 (in Rs.Cr.)
300

200

100

0
Current assets Current Liabilities Ratio

2.The proprietary ratio (also known as net worth ratio or equity ratio) is used
to evaluate the soundness of the capital structure of a company. It is computed
by dividing the stockholders’ equity by total assets.

PROPRIETORY RATIO = SHAREHOLDERS FUND

TOTAL TANGIBLE ASSETS

2017 (in Rs.Cr) 2016 (in Rs.Cr)

Shareholders funds 460.35 408.16

Total tangible assets 524.50 516.82

Ratio 0.877 0.789

INTERPRETATION

The Proprietory ratio for the year 2016-17 &

2015-16 is

0.877 and 0.789.

600

500

400

300 2017 (in Rs.Cr)

2016 (in Rs.Cr)
200

100

0
Shareholders funds Total tangible Ratio
assets

3.Debt Equity Ratio, calculated by dividing a company’s total liabilities by its

stockholders' equity, is a debt ratio used to measure a company's financial
leverage. This ratio indicates how much debt a company is using to finance its
assets relative to the value of shareholders’ equity.

DEBT EQUITY RATIO = LONG TERM DEBTS

SHAREHOLDERS FUND

2017 (in Rs.Cr.) 2016 (in.Rs.Cr.)

Long Term Debts 70.7 115.18

 Shareholders Funds 460.35 408.16

Ratio 0.153 0.282

INTERPRETATION

The Debt Equity ratio for the year 2016-17 & 2016-15 is 0.153 and 0.282.

500
450
400
350
300
250 2017 (in Rs.Cr.)
200
2016 (in.Rs.Cr.)
150
100
50
0
Long Term Shareholders Ratio
Debts Funds

4.The fixed-asset turnover ratio is, in general, used by analysts to measure

operating performance. It is a ratio of net sales to fixed assets. This ratio
specifically measures how able a company is to generate net sales from fixed-
asset investments, namely property, plant and equipment (PP&E), net
of depreciation.

FIXED ASSETS SALES

TURNOVER RATIO = FIXED ASSETS

 2017 (in Rs.Cr.) 2016 (in.Rs.Cr)

Sales 2,172.87 1,987.24

Fixed assets 1,078.36 1,024.51

Ratio 2.014 1.939

INTERPRETATION
The Fixed assets ratio for the year 2016-17 &
2015-16 is 2.014 and 1.939.

2,500.00

2,000.00

1,500.00
2017 (in Rs.Cr.)

1,000.00 2016 (in.Rs.Cr)

500.00

0.00
Sales Fixed assets Ratio

5.Capital turnover ratio Calculated by dividing annual sales by average

stockholder equity (net worth). The ratio indicates how much a company could
grow its current capital investment level. Low capital turnover generally
corresponds to high profit margins.

CAPITAL TURNOVER = SALES

RATIO CAPITAL EMPLOYED

 2017 (in Rs.Cr) 2016 (in Rs.Cr)

Sales 2,172.87 2,172.87

Capital Employed 460.35 408.16

Ratio 4.720 5.323

INTERPRETATION

The Capital turnover ratio for the year 2016-17 & 2015-16 is 4.720 and
5.323.

2,500.00

2,000.00

1,500.00

2017 (in Rs.Cr)

1,000.00
2016 (in Rs.Cr)

500.00

0.00
Sales Capital Ratio
Employed
CONCLUSION
The institutional training which I under took in
WHEELS INDIA LIMITED was very useful and informative.
WHEELS INDIA LIMITED has been a pioneer in automobile
industry in Southern India. The expansion programmes
of the company are well planned and well
implemented.
I express my sincere thanks to the staff of the
Administrative Department for providing me with
valuable and useful information and also efficient
training which goes in a long way to pave the career
path.

During the training period i gained knowledge about

the structure and working of the company. I thank to
the management for giving this opportunity to
develop my future and career.
BIBLIOGRAPHY
REFERENCE BOOKS

Cost and Management Accounting – T.S. Reddy and

A.Murthy

Company Law and Secretarial Practice – N.D. Kapoor

WEBSITES

www.google.co.in

www.wikipedia.org

www.wheelsindia.com
ANNEXURE
BALANCE SHEET AND
PROFIT & LOSS
STATEMENT - 2017
BALANCE SHEET AND
PROFIT & LOSS
STATEMENT - 2016
WHEELS INDIA LIMITED, PADI
WHEELS INDIA LIMITED, SRIPREUMBUDUR
SAP AWARD 2013