New GAdget made with old tools: Measuring financial performance of auto ancillaries through AAPS

Changing facet of business environment, consolidation and combination of businesses in corporate arena; the industry and academia aimed to develop new parameters, benchmarking, principles and policies in manufacturing sector. The present business compendium is evidence that the next ‘Maamo’ is ‘Manufacturing’. To address this opportunity, there is a need to develop new accounting indicators for manufacturing business, exclusively auto ancillary sector. The present study selects 21 listed companies on NSE in auto ancillary sector respect to their market capitalization and analyze for the period of five years from 2005–06 to 2009–10 by computing various accounting ratios with the help of annual reports. This has been developed in the perception of accounting numbers to find out true picture of financial statements. The study concludes by suggesting auto ancillary performance score (AAPS) to guide corporate and financial analysts in business rating & valuation process. The paper is not reported for any private purpose rather it presents the facts with respect to change in accounting numbers. It should not measure to rank or compare any other industry/firm for circulation purpose.