`

SUMMER INTERNSHIP PROJECT

• Presented by
• SAYED NABIL
• Roll no-35
• Companey name- Hero motocorp ltd.
• Specialization- Finance
• Master of bussiness Administration-
• 2015-17 IPSAR CUTTACK.
• SUB-Financial Statement anlysis
• Guided by- Dr jk mishra(Director)
 Chapter-I
• 1-Acknowledgment
• 2-Declaration
• 3-Objective of the study
• 4-Introduction
• 5-Milestone
• 6-Board of directors
• 7-Leadership team
• 8-Product line
• 9-Organaisation structure
• 10-Employees profile
 ACKNOWLEDGMENT
I am using this opportunity to express my gratitude to everyone who supported me throughout
the course of MBA project. I am thankful for Their aspirating guidance. Invaluable constructive
criticism and advice during the project work. I am sincerely great full to them for sharing their
truthful and illumination views on a number of issues related to the project.

I express my warms thanks to Dr j k mishra for their support and guidance at “Financial
Statement analysis of Hero moto corp ”

I would also like to thank again my project external guideance by Dr. j k mishra (Director of
institute of professional study and research center) and all the people who provide me with the
facilities being required and conductive for my MBA Summer project.

Thank you

Sayed Nabil
MBA batch
2015-17
 Declaration
This to certify that I have completed the project titled ”FINANCIAL
STAMENT ANALYSIS OF HERO MOTOCORP LTD.” Under the guidance of
Dr jk mishra in the partial fulfillment for the award of the degree of
“Master in business
Administration” from “Institute of Professional Studies & Research, CDA
cuttack”.

I also conform that, the report is only prepared for my academic

requirement not for any other purpose.

SAYED NABIL
MBA-2015-17
IPSAR
 Index
• 1-Acknowledgement.
• 2-Declaration.
• 3-Objective of the study
• 4-Executive summery
• 5-Company profile
• 6-Mile stone
• 7-Board of directores
• 8-Vision & mission
• 9-Product of the Organaisation
• 10-Organaisation strucuter
• 11-Employees profile
• 12-Financial highlight
• 13-Conclusion
• 14-Bibliography
 OBJATIVE OF THE STUDY
Financial statement of Hero motocorp
• To know the earning capacity or profitability in the
form of ratio.
• To know the solvency.
• To know the financial stregth.
• To make comparative study with other firms.
• To know the capability of payment of interest and
divident.
• To identify the trend of the business.
• To know the efficiency of the management.
 EXCUCATIVE SUMMERY
• Project title:- Financial statement analysis of hero moto corp ltd.
• The name of the company was changed from Hero Honda Motors Limited to
Hero Moto Corp Limited on 29 July 2011. The new brand identity and logo of
Hero Moto Corp were developed by the British firm Wolff Olins . The logo
was revealed on 9 August 2011 in London, to coincide with the third test
match between England and India.
• Hero Moto Corp can now export to Latin America, Africa and West
Asia. Hero is free to use any vendor for its components instead of just
Honda-approved vendors.
• On 21 April 2014, Hero Moto Corp announced their plan on a $40 Mn joint
venture with Bangladesh's Notiol Niloy Group in the next five years.[ also
hero updated its 100cc engine range in 2014 for 100cc bikes except hero
dawn.
• Critical Analysis of Financial statement and Interpretation on the basis of
common size,comparative, treand analysis and ration analysis is an
important tool for the mangement for analyzing the financial perfomance
of the companey.
• For this study five year’s comparasion taken. Main objactive
in undertaking this project is to understand the financial
position of the companey .
• This project helped us to get the deeper understanding of
the process of protfolio management in hero moto corp
limited anfd how decision are taken to strengthen the
financial position.
 INTRODUCTION OF HERO MOTRE GROUP
• Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.) is
the world's largest manufacturer of two - wheelers, based in
India.
• In 2001, the company achieved the coveted position of being
the largest two-wheeler manufacturing company in India and
also, the 'World No.1' two-wheeler company in terms of unit
volume sales in a calendar year. Hero MotoCorp Ltd.
continues to maintain this position till date.
• Hero Honda started in 1984 as a joint venture between Hero
cycle of India and Honda of Japan.
• The joint venture between India's Hero Group and Honda
Motor Company, Japan has not only created the world's single
largest two wheeler company but also one of the most
successful joint ventures worldwide.
• In December 2010, the board of directors of the Hero
Honda Group have decided to terminate the joint venture
between Hero Group of India and Honda of Japan in a
phased manner.
• Under the joint venture Hero Group could not export to
international markets (except Sri Lanka and Nepal) and the
termination would mean that Hero Group can now export.
• Since the beginning, the Hero Group relied on their
Japanese partner Honda for the technology in their bikes.
• Honda will continue to provide technology to Hero Honda
motorbikes until 2014 for existing as well as future models.
• in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity.
HEAD OFFICE OF HERO MOTO CORP
 MILSTONES ACHIEVED BY HERO
MOTO CORP.
2011- New Licensing agreement sign between Hero and
Honda and Hero Honda renamed as Hero Motocorp.
2011- Launch new version of Glamour, CBZ xtreme and
Karizma.
2012- Migration of all the product to brand Hero.
2012- Strategic partnership with Erik Buell Racing(EBR) of USA
2012- Bike of the Year Award 2012
2012- Business Standard Motoring Awards, 2012
2013- Neemrana Plant Foundation Stone laid
2013- 50 Million cumulative 2 wheelers production.
•Board of Directors
•Leadership Team
Mr. Ravi Sud Mr. Anil Dua Mr. Vikram Dr. Anadi S. Pande
Sr. Vice President Sr. Vice President - Kasbekar Vice President - HRM,
& Chief Financial Sales, Sr. Vice President - Corporate Planning &
Officer Marketing & Head of Operations Strategy
Customer Care & Supply Chain

Mr. Vijay Sethi Mr. Neeraj Mathur Mr. Harjeet Singh Mr. Deepak
Vice President & Vice President - Vice President & Mokashi
Chief Information Strategic Sourcing & Head R&D Vice President &
Officer Supply Chain Head International
Business
 VISION & MISSION OF THE COMPANY

VISSION:
company's new identity, reflects its
commitment towards providing world
class mobility solutions with renewed
focus on expanding company's footprint
in the global arena.
 Vision & Mission Continue….
MISSION:
Hero Motocorp mission is to become a global enterprise
fulfilling its customers' needs and aspirations for mobility,
setting benchmarks in technology, styling and quality so that
it converts its customers into its brand advocates.

The company will provide an engaging environment for its

people to perform to their true potential. It will continue its
focus on value creation and enduring relationships with its
partners.
Product Line & Famous Brand
 ORGANIZATIONAL STRUCTURE

DR.Brijmohan lall Munjal- Chairman.

Mr. Pawan Munjal- MD & CEO
Mr. Sunilkant Munjal- Joint MD
Mr. Pradip Dindodiya- Non executive & independent director
V.P. Malik- Non executive & independent director
Mr. Sumankant Munjal- Non executive & independent
director
Mr. Paul Edgerley- Non executive
Dr. Anand Burman- Non executive & independent director
M. Damodaran- Non executive & independent director
Dr. Pritam Singh- Non executive & independent director
Mr. Ravi Nath- Non executive & independent director
 Employees profile.
As on 31 March 2014, the company had 6,782 employees, out of
which 66 were women (1.1%). It also had approx. 13,800
temporary employees on that date.

The company had an attrition rate of 5.1% in the FY 2012-13. The

company spent INR 8.21 billion on employee benefits during the
FY 2012-13.
 Chapter-II
• 10-Financial statment analysis of profit and
loss account & interpretation.
• 11-Financial statment analysis of balance
sheet interpretation.
• 12-Cash flow statement and interpretation.
• 13-Manufacturing plants.
• 14-Achivement
• ZONAL OFFICE
Hero MotoCorp Ltd.
F-126, Katwaria Sarai, Opp. Qutab
Institutional Area,
New Delhi -110016, India.
• REGIONAL OFFICES
Chandigarh
Dehradun
Jaipur
Lucknow
Uttar Pradesh
• Achievements
• Splendor & Passion - Top two models in two wheeler
category by ET Brand Equity Survey 2006.
• Hero Honda Splendor rated as India's most preferred
two-wheeler brand at the Awaaz Consumer Awards
2006.
• The NDTV Profit Car India & Bike India Awards 2006
in the following category: Bike Maker of the Year
• Bike of the Year - Achiever (up to 150 cc category)
• Bike of the Year - Glamour (up to 125 cc category)
• NDTV Viewers' Choice Award to Glamour in the bike
category
2007
Bike of the Year" - CBZ X-treme (up to 150 cc category)
• "Bike Technology of the Year" - Glamour PGM FI
 Cont….
2008
Top Gear Design Awards 2008 - Hunk wins Bike
of the Year.
• NDTV Profit Car India & Bike India Awards -
Bike Manufacturer of the year
2009
Won Gold in the Reader's Digest Trusted Brand
2009 in the 'Motorcycles' category
• NDTV Profit Business Leadership Awards
2009 - two-wheeler category
 Achievement & Awards
Awards
1991
(Economic Times-Harvard Business School Award for Corporate Performance
to Hero Honda Motors Ltd.)
1995
National Award for outstanding contribution to the Development of Indian
Small Scale Industry (NSIC Award - Presented by President of India).
2002
• Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in
'Best Financial Management' and 'Best Operational Efficiency' category,
ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney.
• GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.
2004
ICSI National Award for Excellence in Corporate Governance 2004 by The
Institute of Company Secretaries of India.
 Cont….
2006
No. 1 in automobile industry by TNS Corporate Social
Responsibility Award.
2008
NDTV Profit Business Leadership Award 2008 - Hero
Honda Wins the Coveted "NDTV Profit Business
Leadership Award 2008"
 FINANCIAL-
HERO MOTO CORP LTD ANALYSIS

INCOME STATEMENT FIGURES AS PER FINANCIAL STATEMENTS

Mar-08 March-15 March-14 March-13 March-12 March-11
Year Ended March 31 Notes Notes Notes Notes Notes Notes
(Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.)
INCOME
Sales Turnover 1 29302.94 27155.82 25659.91 25235.02 20815.29
Excise Duty 2 1717.64 1880.35 1891.8 1655.99 1417.36
NET SALES 27585.3 25275.47 23768.11 23579.03 19397.93
other income 492.74 446.38 398.38 364.57 289.62
TOTAL INCOME 28,078.04 25,721.85 24,166.49 23,943.60 19,687.55

EXPENDITURE
Manufacturing Expenses 158.47 137.46 129.18 112.66 100.47
Material Consumed 3 to 5 19860.87 18328.82 17503.53 17383.85 14198.88
Personal Expenses 1172.87 930.04 820.92 735.52 618.95
Selling Expeneses 0 0 0 0 0
Administrative Expenses 2850.91 2339.09 2030 1728.22 1867.1
Expenses Capitalised 0 0 0 0 0
provision Made 6 0 0 0 0 0
TOTAL EXPENDITURE 24,043.12 21,735.41 20,483.63 19,960.25 16,785.40
Operating Profit 3,542.18 3,540.06 3,284.48 3,618.78 2,612.53
EBITDA 4,034.92 3,986.44 3,682.86 3,983.35 2,902.15
Depreciation 539.97 1,107.37 1,141.75 1,097.34 402.38
Other Writes-offs 9 0 0 0 0 0
EBIT 3494.95 2879.07 2541.11 2886.01 2499.77
Interest 11.09 11.82 11.91 21.3 15.17
EBT 3483.86 2867.25 2529.2 2864.71 2484.6
taxes
943.18 758.17 411.04 486.58 476.86

profit and loss for the year 2540.68 2109.08 2118.16 2378.13 2007.74
COMMONSIZE- STATEMENT
OF PROFIT & LOSS ACCOUNT
• Common-Size Analysis allows for
the evaluation of information
from one period to the next
within a company and between
competing companies.
HERO MOTO CORP LTD

INCOME STATEMENT Common-Size Analysis

March-15 March-14 March-13 March-12 March-11
Year Ended March 31

INCOME
Sales Turnover 104.36% 105.57% 106.18% 105.39% 105.73%
Excise Duty 6.12% 7.31% 7.83% 6.92% 7.20%
NET SALES 98.25% 98.26% 98.35% 98.48% 98.53%
other income 1.75% 1.74% 1.65% 1.52% 1.47%
TOTAL INCOME 100.00% 100.00% 100.00% 100.00% 100.00%

EXPENDITURE
Manufacturing Expenses 0.56% 0.53% 0.53% 0.47% 0.51%
Material Consumed 70.73% 71.26% 72.43% 72.60% 72.12%
Personal Expenses 4.18% 3.62% 3.40% 3.07% 3.14%
Selling Expenses 0.00% 0.00% 0.00% 0.00% 0.00%
Administrative Expenses 10.15% 9.09% 8.40% 7.22% 9.48%
Expenses Capitalised 0.00% 0.00% 0.00% 0.00% 0.00%
provision Made 0.00% 0.00% 0.00% 0.00% 0.00%
TOTAL EXPENDITURE 85.63% 84.50% 84.76% 83.36% 85.26%
Operating Profit 12.62% 13.76% 13.59% 15.11% 13.27%
EBITDA 14.37% 15.50% 15.24% 16.64% 14.74%
Depreciation 1.92% 4.31% 4.72% 4.58% 2.04%
Other Writes-offs 0.00% 0.00% 0.00% 0.00% 0.00%
EBIT 12.45% 11.19% 10.52% 12.05% 12.70%
Interest 0.04% 0.05% 0.05% 0.09% 0.08%
EBT 12.41% 11.15% 10.47% 11.96% 12.62%
taxes 3.36% 2.95% 1.70% 2.03% 2.42%
profit and loss for the year 9.05% 8.20% 8.76% 9.93% 10.20%
INTERPRETATION-
As indicate in the common size analysis of p & l shown the total
expenditure over the period 2011-15 has gone up by 2% approximately
from85.26 to 85.63% of the total income their has not been a
significant incres in sales 98.53% to 98.25% on an average of the total
income between the period of 2011-15.Hence the impact of
increment on total expenditure of 2% approximately contribution
significantly to reduce the operating profit by 2% approximately by
13.27% to 12.62% in the year 2011-15.

As significant contribution towards incereses in total expenditure by

2% over the 5 year period comes from incerese in administrative
expenses by 0.67% on an average all over the period and also
manufacturing expenses gone up by 0.51% to 0.56% consistantly
incresed.
The EBT as gown down 12.62% to 12.41% over the five year period as
the interest has been not consistantsly bing made. The companey has
not been able to generate a higher EBT keeping decresing in the
 Comparative statement
• A comparative statement is a
statement which compares financial
data from different periods of time.
The comparative statement lines up
a section of the income statement,
balance sheet or cash flow
statement with its corresponding
section from a previous period.
 INCOME STATEMENT Comparative Analysis
March-15 March-14 March-13 March-12 March-11
Year Ended March 31

INCOME
Sales Turnover 7.91% 5.51% 1.68% 21.23% 20815.29
Excise Duty 8.65% 0.61% 14.24% 16.84% 1417.36
NET SALES 9.14% 5.96% 0.80% 21.55% 19397.93
other income 10.39% 10.75% 9.27% 25.88% 289.62
TOTAL INCOME 9.16% 6.05% 0.93% 21.62% 19,687.55

EXPENDITURE
Manufacturing Expenses 15.28% 6.02% 14.66% 12.13% 100.47
Material Consumed 8.36% 4.50% 0.69% 22.43% 14198.88
Personal Expenses 26.11% 11.73% 11.61% 18.83% 618.95
Selling Expeneses NA NA NA NA 0
Administrative Expenses 21.88% 13.21% 17.46% 7.44% 1867.1
Expenses Capitalised NA NA NA NA 0
provision Made NA NA NA NA 0
TOTAL EXPENDITURE 10.62% 5.76% 2.62% 18.91% 16,785.40
Operating Profit 0.06% 7.22% 9.24% 38.52% 2,612.53
EBITDA 1.22% 7.62% 7.54% 37.26% 2,902.15
Depreciation 51.24% 3.10% 4.05% 172.71% 402.38
Other Writes-offs NA NA NA NA 0
EBIT 21.39% 11.74% 11.95% 15.45% 2499.77
Interest 6.18% 0.76% 44.08% 40.41% 15.17
EBT 21.51% 11.79% 11.71% 15.30% 2484.6
taxes 24.40% 45.79% 15.52% 2.04% 476.86
profit and loss for the year 20.46% 0.43% 10.93% 18.45% 2007.74
INTERPRETATION-
As indicate in the comparative analysis of p&l shown in the total expenditure over
the period 2011-15 has gone down by 8.2% approxematly from18.91% to 10.62% of
the total income. Their has been a heavy decres in sales by 21.55% to 9.14% on an
average of the total income between the period of 2011-15.Hence the impact of
increment of total expenditure of 8.2% approxematly contribution significantly to
reduce the operating profit by 38.52% to 0.06% approxematly form13.27% to 12.62%
in the year 2011-15.

As significant contribution towards increses in total expenditure by 8. 2% over the

5 year period comes from increses in administrative expenses by 14.44% on an
average all over the period and also manufacturing expenses gone up by 12.13 % to
15.28 % consistanly incressed.
The EBT as gown down 12.62% to 12.41% over the five year period as the interest
Is also gone down by 40.41% to 6.18%. The companey has not been able to generate a
higher EBT it is keeping decressed in the operating profit all over the 5 year period
2011-15.As evident in comparative analysis shown that sales had gown by march-12
by21.55 and it is fall all of the consucative year between 2011-15.
 TREND ANALYSES
A trend analysis is an aspect of
technical analysis that tries to
predict the future movement of a
stock based on past data. Trend
analysis is based on the idea that
what has happened in the past gives
traders an idea of what will happen
in the future.
HERO MOTO CORP LTD
Trend Analysis
INCOME STATEMENT March-15 March-14 March-13 March-12 March-11

Year Ended March 31 Base Year 2002

INCOME 140.78% 130.46% 123.27% 121.23% 100.00%

Sales Turnover 121.19% 132.67% 133.47% 116.84% 100.00%
Excise Duty 142.21% 130.30% 122.53% 121.55% 100.00%
NET SALES 170.13% 154.13% 137.55% 125.88% 100.00%
other income 142.62% 130.65% 122.75% 121.62% 100.00%
TOTAL INCOME

EXPENDITURE 157.73% 136.82% 128.58% 112.13% 100.00%

Manufacturing Expenses
139.88% 129.09% 123.27% 122.43% 100.00%
Material Consumed
189.49% 150.26% 132.63% 118.83% 100.00%
Personal Expenses
NA NA NA NA NA
Selling Expeneses
152.69% 125.28% 108.72% 92.56% 100.00%
Administrative Expenses
NA NA NA NA NA
Expenses Capitalised
NA NA NA NA NA
provision Made
143.24% 129.49% 122.03% 118.91% 100.00%
TOTAL EXPENDITURE
Operating Profit 135.58% 135.50% 125.72% 138.52% 100.00%
EBITDA 139.03% 137.36% 126.90% 137.26% 100.00%
Depreciation 134.19% 275.21% 283.75% 272.71% 100.00%
Other Writes-offs #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
EBIT 139.81% 115.17% 101.65% 115.45% 100.00%
Interest 73.10% 77.92% 78.51% 140.41% 100.00%
EBT 140.22% 115.40% 101.80% 115.30% 100.00%
taxes 197.79% 158.99% 86.20% 102.04% 100.00%
profit and loss for the year 126.54% 105.05% 105.50% 118.45% 100.00%
INTERPRETATION-
As indicate in the trend analysis shown the total expenditure over the
period 2011-15 has gone up by 24.33% from118.91 to 143.24% of the
total income. Their has not been a significant increses in sales 121.55%
to 142.21% on an average of the total income between the period of
2011-15.

Hence the impact of increment of total expenditure of 24.33%

approeximatly contribution significantly to just incres the operating
profit by2.94 form138.52% to 135.58% in the year 2011-15.

As significant contribution towards increse in total expenditure by

24.33% over the5 year period comes from increse in administrative
expenses by 60.13% all over the period and also manufacturing
expenses gone up by 112.13% to 157.73% cosistansly incressed . The
EBT as gown up 115.45% to 139.81% over the five year period as the
interest also gown down all over five year period. The coampaney has
not been able to generate a higher EBT keeping decressing in the
oprating profit all over the 5 year period 2011-15.
 BALANCE SHEET
• A statement of the assets,
liabilities, and capital of a
business or other organization at
a particular point in time,
detailing the balance of income
and expenditure over the
preceding period.
HERO MOTO CORP LTD Rs. Cr.
BALANCE SHEET FIGURES AS PER FINANCIAL STATEMENTS
2008 2015 2014 2013 2012 2011
Sche
Year Ended March 31 Schedule Schedule dule Schedule Schedule Schedule
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
SOURCES OF FUNDS
Shareholder's Funds
Capital 1 39.94 39.94 39.94 39.94 39.94
Share Application Money, pending allotment 0.00 0.00 0.00 0.00 0.00
Employee Stock Option Outstanding 0.00 0.00 0.00 0.00 0.00
Reserves & Surplus 2 6,501.39 5,559.93 4966.30 4,249.89 2,916.12
6,541.33 5,599.87 5,006.24 4,289.83 2,956.06
Minority Interest
Amount Received against issue of warrants
Loan Funds
Secured Loans 3 0.00 0.00 302.16 1011.39 1471.04
Unsecured Loans 4 0.00 0.00 0.00 0.00 0.00
Others 0.00
0.00 0.00 302.16 1,011.39 1,471.04
Deffered tax liablity - net 0.00 0.00 0.00 0.00 0.00
6
Total 6,541.33 5,599.87 5,308.40 5,301.22 4,427.10
APPLICATION OF FUNDS
Fixed Assets
Gross Block 4,697.98 3,761.52 4,427.29 4,980.69 5,122.32
Depreciation & Impairment Loss 1,785.29 1,518.27 1,356.31 1,195.18 1,042.04
Net Block 5 2,912.69 2,243.25 3,070.98 3,785.51 4,080.28
Capital Work-In-Progress 712.55 854.11 62.09 38.84 49.96
Advances against capital expenditure 0.00 0.00 0.00 0.00 0.00
3,625.24 3,097.36 3,133.07 3,824.35 4,130.24
Investments 6 3,154.11 4,088.77 3,623.83 3,964.26 5,128.75
Current Assets, Loans & Advances
Inventories 7 815.49 669.55 636.76 675.57 524.93
Sundry Debtors 8 1389.59 920.58 665.00 272.31 130.59
Cash & Bank Balances 9 159.25 117.50 181.04 76.82 71.52
Other Current Assets 10 0.00 0.00 0.00 0.00 0.00
Loans & Advances 11 1378.02 1203.54 1401.95 1075.61 740.23
3,742.35 2,911.17 2,884.75 2,100.31 1,467.27
Current Liabilities & Provisions
Liabilties 12 3180.69 2903.12 2893.39 3497.63 5218.09
Provisions 13 799.68 1594.31 1439.86 1090.07 1081.07
3,980.37 4,497.43 4,333.25 4,587.70 6,299.16

Net Current Assets -238.02 -1586.2 -1448.50 -2487.39 -4,831.89

Miscellaneous expenditure 0.00 0.00 0.00 0.00 0.00
Total 6,541.33 5,599.87 5,308.40 5,301.22 4,427.10
 Commonsize statement of Balance sheet

• A common size balance sheet is a balance sheet

that displays both the numeric value and relative
percentage for total assets, total liabilities and
equity accounts. Common size balance sheets are
used by internal and external analysts and are not
a reporting requirement of GAAP.
HERO MOTO CORP LTD
BALANCE SHEET
Common Size Analysis
March-15 March-14 March-13 March-12 March-11
Year Ended March 31

SOURCES OF FUNDS
Shareholder's Funds
Capital 0.61% 0.71% 0.75% 0.75% 0.90%
Share Application Money, pending allotment 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00%
Employee Stock Option Outstanding
99.39% 99.29% 93.56% 80.17% 65.87%
Reserves & Surplus

Minority Interest
Amount Received against issue of warrants
Loan Funds
0.00% 0.00% 5.69% 19.08% 33.23%
Secured Loans
0.00% 0.00% 0.00% 0.00% 0.00%
Unsecured Loans
Others
0.00% 0.00% 5.69% 19.08% 33.23%
Deffered tax liablity - net 0.00% 0.00% 0.00% 0.00% 0.00%
Total6 100% 100% 100% 100% 100%

APPLICATION OF FUNDS
Fixed Assets
Gross Block 71.82% 67% 83% 94% 116%
Depreciation & Impairment Loss 27.29% 27% 26% 23% 24%
Net Block 80.34% 72.42% 98.02% 98.98% 98.79%
Capital Work-In-Progress 19.66% 27.58% 0.00% 1.02% 1.21%
Advances against capital expenditure 0.00% 0.00% 0.00% 0.00% 0.00%

Investments 48.22% 73.02% 68.27% 74.78% 115.85%

Current Assets, Loans & Advances

Inventories 12% 12% 12% 13% 12%
Sundry Debtors 21% 16% 13% 5% 3%
Cash & Bank Balances 2% 2% 3% 1% 2%
Other Current Assets 0% 0% 0% 0% 0%
Loans & Advances 21% 21% 26% 20% 17%

Current Liabilities & Provisions

Liabilties 79.91% 64.55% 66.77% 76.24% 82.84%
Provisions 20.09% 35.45% 33.23% 23.76% 17.16%

Net Current Assets 28.33% 27.29% 46.92% 109.14%

Miscellaneous expenditure 0.00% 0.00% 0.00% 0.00% 0.00%
(to the extent not written off or adjusted)
Total 100% 100% 100% 100% 100%
• As indicate in the common size statement of balance
sheet capital of the companey is decres all over the
five year period but at that time reserve and surpluse
gone up by 33.52% in the comparision of total
Laibilites.

• In the balancesheet showes that investment in fixed

assets decresses because of working capital of the
companey is less that’s current assets is less than
current liabilites and net block of the companey is also
decreses by 100% to 98.79% of five year period due to
heavey amount of depreciation is chardge .
• The investment of the companey is decreses because
of less working capital.
 Comparative statement of balance sheet

• A comparative statement is a document that

compares a particular financial
statement with prior period statements or
with the same financial report generated by
another company. Analyst and business
managers use the income statement ,
balance sheet and cash flow statement
for comparative purposes.
HERO MOTO CORP LTD Comparative Analysis
BALANCE SHEET March-15 March-14 March-13 March-12 March-11

Year Ended March 31

SOURCES OF FUNDS
Shareholder's Funds 0.00% 0.00% 0.00% 0.00% 39.94
Capital NA NA NA NA 0.00
Share Application Money, pending allotment NA NA NA NA 0.00
Employee Stock Option Outstanding 16.93% 11.95% 16.86% 45.74% 2,916.12
Reserves & Surplus

Minority Interest
Amount Received against issue of warrants
Loan Funds NA NA 70.12% 31.25% 1471.04
Secured Loans NA NA NA NA 0.00
Unsecured Loans 0.00
Others NA 100.00% 70.12% 31.25% 1,471.04
NA NA NA NA 0.00
Deffered tax liablity - net 16.81% 5.49% 0.14% 19.74% 1,471.04
Total6

APPLICATION OF FUNDS
Fixed Assets
24.90% 15.04% 11.11% 2.76% 5,122.32
Gross Block
17.59% 11.94% 13.48% 14.70% 1,042.04
Depreciation & Impairment Loss
29.84% 26.95% 18.88% 7.22% 4,080.28
Net Block
16.57% 1275.60% 59.86% 22.26% 49.96
Capital Work-In-Progress
NA NA NA NA 0.00
Advances against capital expenditure

22.86% 12.83% 8.59% 22.71% 5,128.75

Investments

Current Assets, Loans & Advances

Inventories 21.80% 5.15% 5.74% 28.70% 524.93
Sundry Debtors 50.95% 38.43% 144.21% 108.52% 130.59
Cash & Bank Balances 35.53% 35.10% 135.67% 7.41% 71.52
Other Current Assets NA NA NA NA 0.00
Loans & Advances 14.50% 14.15% 30.34% 45.31% 740.23

Current Liabilities & Provisions

Liabilties 9.56% 0.34% 17.28% 32.97% 5218.09
Provisions 49.84% 10.73% 32.09% 0.83% 1081.07

Net Current Assets -84.99% -9.51% -41.77% -48.52% -4831.89%

Miscellaneous expenditure NA NA NA NA 0.00%
(to the extent not written off or adjusted)
Total 16.81% 5.49% 0.14% 19.74% ##########
• The comparative statement of the balance sheet
showed that is zero because of same investment
made in the share capital but reseveandsurpluse is
highly decline by 45.74% to 16.93% all over the five
year period and secure loan is occuer in the year 2011-
2013 as a decersing rate.
• Net block shown in the balance sheet of comparative
analysis is due to rasie of the depriciation by 14.70%
to 17.59%
• We look in to the balance sheet of the companey we
found that some it is lower and some it is higher that
is in the year 2012 it is 22.71% but 2013-14 it is 8.59%
to 12.83% again 2015 gone up to 22.86%.It is just
increses by 0.15% in comparision to 2012.
 Trend analysis of balance sheet
• Trend analysis is statement in vertical form where
the earlist year is taken as base year and the value
of all the itemes in the financial statement will
related to related base year in terms of % where
value of each iteme in base year will be considered
as 100. Trend % analysis move in one directions
ethier upward or downward progression or
regression.
HERO MOTO CORP LTD

BALANCE SHEET Trend Analysis

March-15 March-14 March-13 March-12 March-11
Year Ended March 31

SOURCES OF FUNDS
Shareholder's Funds
Capital 100.00% 100.00% 100.00% 100.00% 100.00%
Share Application Money, pending allotment NA NA NA NA NA
Employee Stock Option Outstanding NA NA NA NA NA
Reserves & Surplus 222.95% 190.66% 170.31% 145.74% 100.00%
Minority Interest
Amount Received against issue of warrants
Loan Funds
Secured Loans 0.00% 0.00% 20.54% 68.75% 100.00%
Unsecured Loans 0.00%NA #DIV/0! #DIV/0! #DIV/0!
Others =
0.00% 0.00% 20.54% 68.75% 100.00%
Deffered tax liablity - net #DIV/0! NA #DIV/0! #DIV/0! #DIV/0!
Total6 147.76% 126.49% 119.91% 119.74% 100.00%
APPLICATION OF FUNDS
Fixed Assets
Gross Block 91.72% 73.43% 86.43% 97.24% 100.00%
Depreciation & Impairment Loss 171.33% 145.70% 130.16% 114.70% 100.00%
Net Block 71.38% 54.98% 75.26% 92.78% 100.00%
Capital Work-In-Progress
Advances against capital expenditure 1426.24% 1709.59% 124.28% 77.74% 100.00%
#DIV/0! NA #DIV/0! #DIV/0! #DIV/0!
Investments
61.50% 79.72% 70.66% 77.29% 100.00%

Current Assets, Loans & Advances

Inventories 155.35% 127.55% 121.30% 128.70% 100.00%
Sundry Debtors 1064.09% 704.94% 509.23% 208.52% 100.00%
Cash & Bank Balances 222.66% 164.29% 253.13% 107.41% 100.00%
Other Current Assets #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Loans & Advances 186.16% 162.59% 189.39% 145.31% 100.00%

Current Liabilities & Provisions

Liabilties 60.96% 55.64% 55.45% 67.03% 100.00%
Provisions 73.97% 147.48% 133.19% 100.83% 100.00%

Net Current Assets 4.93% 32.83% 29.98% 51.48% 100.00%

Miscellaneous expenditure NA NA NA NA NA
(to the extent not written off or adjusted)
Total 147.76% 126.49% 119.91% 119.74% 100.00%
• The treand analysis of the balancesheet
showe that in comparision 2011 as a base year
it is 100% all of the year because of capital is
same all of the year and reserve and surepluse
is gone up by 145.74% to 222.95% all over the
five year period
• Here also net block of the companey is gowen
down because of deprication increses all over
the five year periode
• Capital work-in progress is decling by 100% to
54.98% due to fall in investment.
 CASH FLOW STATEMENT OF
HERO MOTOCORP LTD
FOR
financial the year ended 2011 to 2015.
 FOR THE YEAR ENDED MARCH 31 2015 2014 2013 2012 2011
Rs. in Crores Rs. in Crores Rs. in Crores Rs. in Crores Rs. in Crores

CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before tax 2712.35 1841.60 518.54 383.50 253.56
Operating Profit before Working Capital Changes 2095.42 2212.89 756.08 565.52 496.55
Cash generated from operations 1984.47 2259.17 677.00 614.25 348.89
Direct Taxes Paid 448.90 450.33 37.13 28.74 20.54
Miscellaneous Expenditure 0.77 2.51 0.66 0.27 1.27
Exchange rate difference 23.87 10.15 0.73 9.92 12.60
Interest and Finance Charges paid 91.79 120.92 137.38
Net Cash from Operating Activities 1558.67 1796.18 548.15 474.24 202.30

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets 800.25 795.38 177.55 256.72 136.49
Sales of Fixed Assets 271.83 38.97 6.65 3.55 4.44
Purchase of Investments 2224.20 1196.37
Sale of Investment 2193.66 1220.95
Interest Received 77.22 30.77 5.97 35.91 42.75
Dividend Received 22.80 4.97 1.11 5.60 2.32
Investments 729.64 13.12 104.16
Others 996.44 80.38 14.84
Net cash flow / used in Investing Activities -161.60 -627.17 -253.14 -242.20 -62.40
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of Share capital (Including Premium) 32.29 48.08 15.25 16.35 1.73
Premium on redemption of Debentures and Shares Issue expenses 2.84 11.36 38.64
Advance against subscription of share
Repayment / Conversion of 1% FCCB 9.25
Proceeds from issue of 1%R..E.E.L.S
Proceeds from Long Term Borrowings 50.00 890.06 376.93
Repayment of Long Term Borrowings 575.32 1230.27 490.95 38.33 31.88
Interest Paid 48.25 115.94
Dividend Paid 583.08 476.55 182.68 168.63 90.98
Unclaimed sale proceeds of the odd lot shares of erstwhile ACEL and
ACRL 0.08 0.59
Exchange rate difference on borrowings 3.95 3.25
Net Cash flow / used from Financing Activities -1124.44 -888.86 -277.31 -211.22 -159.77
Net Increase/Decrease in Cash and Cash equivalents 272.63 280.15 17.70 20.82 -19.87
Cash and cash equivalents(Opening balance) 378.10 86.53 68.83 30.88 50.73
Cash and cash equivalents(Closing balance) 650.79 378.10 86.53 68.83 30.88
 CASHFLOWSATAEMENT
The cash flow statement prepare by the organaisation is vital to
understand the movement of cash within and outside of the
organaisation.

As the strent of the business is depends on the avaliable cash

resourses. The debt servicing, Capital expenditure(CAPES)and
required opretation are dependent are effeted in a positive and
negative manner during a particular financial year. The cash flow
statement compraieses of 3 segment.

1.Romanic (i)-Cash flow from operating activity that showed the net
cash avalible after deciding the oprating expenses from the revenew
generated through sales.It is the net cash avlabile from one activities
the sureviability of the business depends on the
Positive cash flow from operating activity.
2.Romanica(ii)-Cash flow from investing activity this segment shows
the capital expendituremade by the business during a particular year
other investment made such as income from dividend and interest and
revenew or cash flow from sales of fixed assets.

3. Romanica(iii)-Financing activities- This statement shows that soures

of fund and utilization of the fund .
This praticular companey showes.
CASH FLOW FORM OPERATING ACTIVITY-
The net cash flow generated from operating activities it is
increment 202.30 to 1558.67 over the period 2011-15.
CASH FLOW FORM INVESTING ACTIVITY-
The application of cash outflow of investing activites -62.40
to -161.60 as negative sing.
CASH FLOW FORM FINANCING ACTIVITY- The cash
outflow increases as ngative sing of financing activities
-121.56 to -1116.79.
2014 is explain by repayment of long term borrowing of
1230.27 and the interest paid115.94 and dividend paid of
476.55. The cash flow statement reveles that through out of
the Period 2011 to 15 there has been a positive. Net cash
inflow attributable to positive cash
Inflow form operating activity.
 Chapter-III
15-Ratio analysis and interpretation.
16-Conclusion
17-Bibiology
 RATIO ANALYSIS
• Ratio analysis is the process of determining and interpreting
numerical relationships based on financial statements. A
ratio is a statistical yardstick that provides a measure of the
relationship between two variables or figures.
• This relationship can be expressed as a percent or as a
quotient. Ratios are simple to calculate and easy to
understand.
• The persons interested in the analysis of financial
statements can be grouped under three heads,
• i) owners or investors
• ii) creditors and
• iii) financial executives.
 Return on investment capital

• .Return on common equity-

• Return on equity (ROE) is the amount of income returned as a
percentage of shareholder equity. Return on equity measures a
corporation's profitability by revealing how much profit a
company generates with the money shareholders have invested.
• Return on capital employed-
• Return on capital employed is a financial ratio that measures a
company's profitability and the efficiency with which
its capital is employed.
• Return on investment-
• It measures the return that an investment generates for those
who have provided capital, i.e. bondholders and stockholders.
ROIC tells us how good a company is at turning capital into profits.
 Return on Invested
Capital 2015 2014 2013 2012 2011

Return on Capital
Employed Net Profit

Capital Employed 75.01% 139.57% 125.74% 177.88% -286.15%

Return on Investments Net Profit

Investments in Assets 80.55% 51.58% 58.45% 59.99% 39.15%

Return on Common
Equity(ROCE) (Net Income -Pref Dividend)

Av Equity sharehloders 247.55% 203.50% 242.45% 189.54% 228.60%

INTERPRETATION-
Return on the capital employed is the relation between net profit and
capital employed. In the company it is shown in the return on
investment capital in the year 2015 it is -285.15% as negative sing
because of more capital employed Is used and rest of the year it is
gown down by 177.88% to 75.01% all of the year 2012-2015.

As indicated in the return on investment capital is return on

investment is relation between with net profit with investment in
assets that is invest by the company and when we found that it is
gown up by 39.15% to 80.55% in between 2011 to 2015 which is
blockage of money in asstes.
Return on common equity it is difference between net income and
pref- dividend and divided by equity shareholders it means net profit
avlabilbe for equity share holders to providing sound equity devident
by the company. In the company earn of return on common equity has
228.60 in the year 2011 and between 2012-2013 it is increase 52.91%
that is 189.54% to 242.45% and in the year 2014-15 it is 203.50% to
 PROFITABILITY RATIO
• GROSS PROFIT MARGIN
• Gross profit margin is a financial metric used to assess a company's
financial health and business model by revealing the proportion of
money left over from revenues after accounting for the cost of
goods sold (COGS). Gross profit margin, also known as gross
margin, is calculated by dividing gross profit by revenues.
• OPERATRING PROFIT MARGIN
• Operating margin is a margin ratio used to measure a company's
pricing strategy and operating efficiency. Operating margin is a
measurement of what proportion of a company's revenue is left
over after paying for variable costs of production such as wages,
raw materials, etc.
Profitability Ratios 2015 2014 2013 2012 2011

Gross Profit Gross Profit(Sales-Cost of

Margin Goods Sold)
- - - -
Sales 66.10% 65.85% -66.66% 67.44% 66.82%

Operating Profit
Margin Operating Income

Sales 32.22% 32.51% 31.79% 31.11% 31.79%

Cash earnings per Net profit available for

share equityholders +Depreciation

Investments 0.98 0.79 0.90 0.88 0.47

• CASH EARNING PER SHARE-
• Cash earnings per share (Cash EPS) is a measure of financial
performance that looks at the cash flow generated by a company on
a per share basis. This differs from basic earnings per share (EPS),
which looks at the net income of the company on a per share basis.
• INTERPRETATION- Gross profit margine-
• It is the relation ship between gross profit to sales financial
statement showed that it is reduce 66.82 % to 66.10% in the year
between 2011-15.It generalley shows that the financial helath of
the companey is poor.
• Operating profit margin- showed in this praticulare coampaney it is
gone up by 31.79 % to 32.22% all over the five year period after
paying all of the cost of production.

• Cash earning per shares- It is indicate the earning basis of per share
of the companey. In this particular companey it is all over the five
year is 0.47 to 0.98 2011 to 2015.
 CONCLUSION
• Profit, efficiency and financial soundness of the Hero moto corp
ltd are not achieved throughout the analysis of five different
years.
• From the various analysis of financial statement we can esly find
out that financial position of Hero moto corp is found lower . The
trend analysis showes the results relating only to the base year.
This can help the company to know the rise or fall in the position
with reference to the base year. On the other hand, the common
size analysis standardizing financial statements by introducing a
common denominator as a percentage of total assets or sales.
This helps the company to know the growth in terms of its net
sales through the relative magnitude of asset, liability, equity and
income statement components. Moreover, the comparative
analysis reveals that the company’s performance in respect to
the preceeding years. This shows the short term growth of the
company with only two years range.
Thus the all those results has been extract from the above
mentioned analysis. All the analysis show mixed results which
indicate the performance of the company is not up to the
mark.
 BIBLIOGRAPHY
http://www.heromotocorp.com/en-in/about-
us/about-us.html
http://www.heromotocorp.com/en-in/rider-
zone/bike-services-and-maintenance-
schedule.html
http://www.motorbeam.com/sales-
figures/february-2013-bike-sales-figures-
analysis/#FqEk2dKbSa62FqxQ.99
http://money.sulekha.com/hero-honda-
motors_key-financial-ratios
Thank You