A

Project Report
on
WORKING CAPITAL MANAGEMENT
In
HERO MOTO CORP LTD.
A Project Report submitted to Osmania University in Partial
fulfilment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
DUMPALA SHIVA KUMAR
(HT. NO: 212121672048)

UNDER THE GUIDANCE OF

Dr.P.SURESH
Associate Professor

ARISTOTLE PG COLLEGE
(Affiliated to Osmania University, Hyderabad)
Recognized by UGC Under Section 2(f) of UGC Act 1956
Beside Moinabad Police station,
Chilkur, Moinabad, Ranga Reddy District, Telangana

2021-23
 DECLARATION

I, hereby declare that the project report titled “A STUDY ON WORKING

CAPITAL MANAGEMENT in HERO MOTO CORP LTD.” Submitted by me to
the department of Business Management, ARISTOTLE PG COLLEGE Osmania
University, Hyderabad, is bonafied work under taken by me and is not submitted to
any Degree or Diploma are Published any time before.

Place : DUMPALA SHIVA KUMAR

Date : HT NO: 212121672048
 ACKNOWLEDGEMENT

Apart from my efforts, the success of this project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of
this project.

I express my sincere thanks to Dr.L.Srinivas Reddy, Principal, and ARISTOTLE

P.G.COLLEGE for providing all necessary facilities in completing my project.

I would like to express my thanks of gratitude to my internal guide Dr.P.SURESH .

For continuous encouragement and patient corrections in completing my project. I
also express my sincere thanks to M.B.A. faculty, for their timely help and assistance
in preparing the project report.

Finally I would like to thank my Parents and Friends for their continuous
encouragement and support during the entire course of project.

DUMPALA SHIVA KUMAR

HT NO: 212121672048
 INDEX

PARTICULARS CHAPTER NO PAGE NO

INTRODUCTION I 1-3

REVIEW OF LITERATURE II 4-8

RESEARCH METHODOLOGY III 10-12

INDUSTRY & COMPANY PROFILE IV 14-28

DATA ANALYSIS & INTERPRETATION V 29-46

FINDINGS VI 48

SUGGESTIONS & CONCLUSION VII 50

BIBLIOGRAPHY 51
 CHAPTER-I
INTRODUCTION

1
WORKING CAPITAL:
Cash is the lifeline of a company. If this lifeline deteriorates, the company's ability to fund
operations, reinvest and meet capital requirements and payments also deteriorate. Understanding a
company's cash flow health is essential for making investment decisions. A good way to judge a
company's cash flow prospects is to look at its working capital management (WCM).

Working capital of a company reveals more about the financial condition of a business than almost
any other calculation. It tells you what would be left if a company raised all of its short term
resources, and used them to pay off its short term liabilities. The more working capital, the less
financial strain a company experiences.

Working capital also gives investors an idea of the company's underlying operational efficiency.
Money that is tied up in inventory or money that customers still owe to the company can't be used
to pay off any of its obligations. So, if a company is not operating in the most efficient manner
(slow collection) it will show up in the working capital. This can be seen by comparing the working
capital from one period of time to another; slow collection may signal an underlying problem in the
company's operations.

DEFINITION

The definition of working capital is that it is the difference between an organization’s

current assets and its current liabilities. Of more importance is its function which is
primarily to support the day-to-day financial operations of an organization, including the
purchase of stock, the payment of salaries, wages and other business expenses, and the
financing of credit sales. It’s a measure of both a company's efficiency and its short-term
financial health.

The better a company manages its working capital, the less the company needs to borrow. Even
companies with cash surpluses need to manage working capital to ensure that those surpluses are
invested in ways that will generate suitable returns for investors.

2
There are two concepts of working capital. They are
→ Gross working capital and
→ Net working capital.

The term gross working capital, also referred to as working capital means the total current assets.
The term net working capital can be defined in two ways:
The most common definition of net working capital is the difference between the current assets
and the current liabilities.
 The alternate definition of NWC is that portion of current assets which is financed with
long term funds. Since the current liabilities represent the sources of short term funds, as
long as current assets exceed current liabilities, the excess must be financed with long term
funds.
The net working capital, as a measure of liquidity is quite useful for internal control. The net
working capital helps in comparing the liquidity of the same firm over time.
Therefore:

Current Assets - Current Liabilities = Working Capital

A positive working capital means that the company is able to pay off its short-term liabilities. A
negative working capital means that a company currently is unable to meet its short-term liabilities
with its current assets (cash, accounts receivable, inventory).
Management must ensure that a business has sufficient working capital. Too little of the working
capital will result in cash flow problems highlighted by an organization exceeding its agreed
overdraft limit, failing to pay suppliers on time, and being unable to claim discounts for prompt
payment. In the long run, a business with insufficient working capital will be unable to meet its
current obligations and will be forced to cease trading even if it remains profitable on paper.

On the other hand, if an organization ties up too much of its resources in working capital it
will earn a lower than expected rate of return on capital employed. Again this is not a
desirable situation.

As it is said that working capital is the difference between the current assets and the current
liabilities, the management of the company has to manage their current assets and current
liabilities.

3
 CHAPTER-II
REVIEW OF LITERATURE

4
WORKING CAPITAL MANAGEMENT

Management of working capital plays a very important role in the financial management of
a company because maintaining a balance of income to debt can be difficult and owners
must be diligent to assure that it is kept. Sometimes it takes a little assistance to maintain
levels of fluidity or make major purchases.

If working capital dips too low, a business risks running out of cash. Even very profitable
businesses can run into trouble if they lose the ability to meet their short-term obligations.
Working capital financing can be used as a fast cash option to cushion the periods when the
flow is not ideal or readily available. Even when owners are meticulous in managing
working capital, finding the right levels to remain comfortable and competitive can be
difficult.

The Importance of Good Working Capital Management

Working capital constitutes part of the Company’s investment in a department. Associated

with this is an opportunity cost to the company. (Money invested in one area may "cost"
opportunities for investment in other areas.) If a department is operating with more
working capital than is necessary, this over-investment represents an unnecessary cost to
the Company

From a department's point of view, excess working capital means operating inefficiencies.
In addition, unnecessary working capital increases the amount of the capital charge which
departments are required to meet

5
BanaAbuzayed (Talal Abu-Ghazaleh College of Business, the German (2016)

The purpose of this paper is to examine the effect of working capital management on

Firm’s performance for a sample of firms listed on a small emerging market, namely Amman Stock

Exchange. The paper includes a conceptual as well as empirical analysis, in which data from a

sample of listed firms for a period from 2000-2008 are analysed to examine if more efficient

working capital management improves firms accounting profitability and firms value. Cash

conversion cycles as well as its components are used as measures of working capital management

skills. In this study two performance measures are used one accounting two marketing measure,

believing that well maximization is shareholders main concern. To bring up more robust results,

this study used more than one estimation technique, including panel data analysis, fixed and

random effects and generalized methods of moments.

Singh, J.P; Pandey, Shishir (2017)

For the successful working of any business organization, fixed and current assets play a vital role

.Management of working capital is essential as it has a direct working capital components and the

impact of working capital management on profitability of Hindalco industries limited. The paper

also makes an attempt to study the correlation between liquidity ,profitability and profit before tax

(PBT) of Hindalco .The study is based on secondary data collected from annual reports of

Hindalco for the study period 2090-2007.The ratio analysis, percentage method and coefficient of

correlation have been used to analyze the data. Multiple regressions are used to check the

significant impact on the profitability of Hindalco.

Grey Filbeck (Schweser study program) (2018)

Firms are able to reduce Financing cost and/or increase the funds available for expansion by

minimizing the amount of funds tied up in current assets. We provide insights into the performance

6
of surveyed firms across key components of working capital Management by using CFO

Magazine’s annual working capital management survey. We discover that significant differences

exist between industries in working capital measures across time. In addition we discover that these

measures for working capital change significantly within industries across time.

Maynard E.Rafuse (managing director, bennecon limited, process analysis and stock

management consultant London UK) (2019)

Argues that attempt to improve working capital by delaying payment to creditors is counter-

productive to individuals and to the economy as a whole. Claims that altering debtors and creditor’s

level of individual tiers within a value system will rarely produce any net benefit.Proposes that

stock reduction generates system wide financial improvement and other important benefits.Urges

those organization seeking concentrates working capital reduction strategies to focus on stock

management strategies based on “lean supply chain” techniques.

Smith and Begermann (2019), in their study of industrial companies listed in the Johannesburg

Stock Exchange, indicated that current liabilities divided by funds flow (a working capital leverage

ratio) displayed the greatest association with return on investment. On the other hand, other

indicators like current and quick rations displayed no association.

Deloof, (2003) discussed that most firms had a large amount of cash invested in working capital. It

can therefore be expected that the way in which working capital is managed will have a significant

impact on profitability of those firms. Using correlation and regression tests he found a significant

negative relationship between gross operating income and the number of days accounts receivable,

inventories and accounts payable of Belgian firms.

Ghosh and Maji, (2003) in this paper made an attempt to examine the efficiency of working

capital management of the Indian cement companies during 1992 – 1993 to 2001 – 2002. For

measuring the efficiency of working capital management, performance, utilization, and overall

efficiency indices were calculated instead of using some common working capital management

ratios.

Eljelly, (2004) elucidated that efficient liquidity management involves planning and controlling
7
current assets and current liabilities in such a manner that eliminates the risk of inability to meet

due short-term obligations and avoids excessive investment in these assets. Filbeck G. et al. (2005)

investigated the data of 26 industries by taking the data of 970 companies during 1996 to 1999.

They found out that firms are able to decrease financing cost and/or augment the funds obtainable

for development by reduce the amount of funds attached to the current assets.

Raheman and Nasr (2007) selected a sample of 94 listed Pakistani companies from different
sectors of economy for a period of 8 years, from 1999-2004. The independent variables used were
current ratio, day’s receivable, day’s inventory, days payable and cash conversion cycle. Teruel
and Martinez–Solano (2007) also provided the empirical relationship between both the variables.
They chose the small and medium sized Spanish firms, a sample of about 8872 small to medium
sized enterprises for 1996 to 2002.

8
 CHAPTER-III
RESEARCH METHODOLOGY

9
NEED OF THE STUDY

Working capital management is one of the key areas of financial decision-making. It is significant
because, the management must see that an excessive investment in current assets should protect the
company from the problems of stock-out. Current assets will also determine the liquidity position
of the firm.

The goal of working capital management is to manage the firm current assets and current liabilities
in such a way that a satisfactory level of working capital is maintained. If the firm cannot maintain
a satisfactory level of working capital, it is likely to become insolvent and may be even forced into
bankruptcy.

SCOPE OF THE STUDY:

A study of the Working capital involves an examination of long term as well as short term
sources that a company taps in order to meet its requirements of finance. The scope of the study is
confined to the sources that HERO MOTCORP PVT LTD tapped over the years under study i.e.
2018-2022.

OBJECTIVES OF THE STUDY

 To study the existing working capital management system of HERO MOTCORP PVT LTD.
 To find the liquidity position of the current assets and current liabilities of the company.
 To examine feasibility of present system of managing working capital.
 To understand how the company finances its working capital

10
  To analyze the financial performance of the company with reference to working capital.
 To give some suggestions to the management based on the information studied.

METHODOLOGY
 The study of Working Capital management is based on primary as well as secondary data.

Data relating to. Has been collected through

SECONDARY SOURCES:

Published annual reports of the company for the year 2018-2022.

PRIMARY SOURCES:
Detailed discussions with Vice-President.
Discussions with the Finance manager and other members of the Finance department.

DATA ANALYSIS

The collected data has been processed using the tools of

 Ratio analysis
 Graphical analysis
 Year-year analysis

These tools access in the interpretation and understanding of the Existing scenario of the Working
capital .

 The primary data was gathered through personal interaction with the director of the company.

 The secondary data was collected from company’s annual reports from 2017-2021, various
books and Internet.

11
 LIMITATIONS

 Due to the busy schedule of the executives in the company, all the required primary data could
not be collected, which might affect the results of the study.

 Recommendations of the study are only personal opinions. Hence the judgments may be
biased and could not be considered as ultimate and standard solutions.

 Short period of time is one of the limitations, due to which a detailed study could not be
conducted on the topic

12
 CHAPTER-IV

INDUSTRY PROFILE

&

COMPANY PROFILE

13
INTRODUCTION
The automobile industry is one of India’s most vibrant and growing industries. This industry
accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). The auto
sector is one of the biggest job creators, both directly and indirectly. It is estimated that every job
created in an auto company leads to three to five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many global
automakers. India is presently the world's third largest exporter of two-wheelers after China and
Japan. According to a report by Standard Chartered Bank, India is likely to overtake Thailand in
global auto-export market share by the year 2020.
The next few years are projected to show solid but cautious growth due to improved affordability,
rising incomes and untapped markets. With the government’s backing, and trends in the
international scenario such as the decline in prices of natural rubber, the Indian automobile industry
is slated to witness some major growth.
Market size
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during
the period April 2000 – August 2018 was recorded at US$ 13,159.68 million, as per data by
Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
177,873 passenger cars were sold in July 2018 compared to 171,257 units during the corresponding
month of 2017. Among the auto makers, Maruti Suzuki, Hyundai Motor India and Honda Cars
India emerged the top three gainers with sales growth of 19.45 per cent, 16 per cent and 15 per
cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of increased
demands from the urban market. Total sales across different vehicle segments grew 16 per cent
year on year (y-o-y) to 1,586,163 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of the
total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for scooters,
which has far outstripped supply has prompted Honda to set up its first dedicated scooter plant in
Ahmedabad.
Tractor sales in the country is expected to grow at a compound annual growth rate (CAGR) of 8–9
per cent in the next five years making India a high-potential market for many international brands.

Investments
14
To match production with demand, many auto makers have started to invest heavily in various
segments in the industry in the last few months. Some of the major investments and developments
in the automobile sector in India are as follows:
 Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million) in India, by
way of capital expenditure (capex) and investment during FY19. The company is required
to manage Rs 6,000 crore (US$ 980.56 million) of assets in seven locations across the
world, for which maintenance capex is needed.

 Honda Motors plans to set up the world's largest scooter plant in Gujarat to roll out 1.2
million units annually and achieve leadership position in the Indian two-wheeler market.
The company plans to spend around Rs 1,130 crore (US$ 189.76 million) on the new plant
in Ahmedabad, and expand its range with a few more offerings.

 Yamaha Motor Co has restructured its business in India. Now, Yamaha Motor India (YMI)
will take care of its India operations. “The restructuring is part of Yamaha’s mid-term plan
aimed at improving organisational efficiency,” as per Mr Hiroyuki Suzuki, Chief Executive
and Managing Director. YMI would be responsible for corporate planning and strategy,
business planning and business expansion, quality control, and regional control of Yamaha
India Business.

 Tata Motors plans to use the 'hub-and-spoke' model in which India will be the key
manufacturing base while it will have mini-hubs in overseas markets. The company also
plans to set up mini hubs in potential markets like Africa, Middle-East and South East
Asia.

 Hero Cycles through its unit OPM Global has acquired a majority stake in German bicycle
company Mitteldeutsche Fahrradwerke AG (MIFA) for €19 million (US$ 20.15 million).
The company plans to invest an additional €4 million (US$ 5.09 million) as capital
expenses in restructuring the acquired company.

Government initiatives
The Government of India encourages foreign investment in the automobile sector and allows 130
per cent FDI under the automatic route. To boost manufacturing, the government had lowered
excise duty on small cars, motorcycles, scooters and commercial vehicles to eight per cent from 16
per cent, on sports utility vehicles to 24 per cent from 30 per cent, on mid-segment cars to 20 per
cent from 24 per cent and on large-segment cars to 24 per cent from 27 per cent.
The government’s decision to resolve VAT disputes has also resulted in the top Indian auto makers
15
namely, Volkswagen, Bajaj Auto, Mahindra & Mahindra and Tata Motors announcing an
investment of around Rs 15,500 crore (US$ 1.87 billion) in Maharashtra.
The Automobile Mission Plan for the period 2006–2017, designed by the government is aimed at
accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework
under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to
this sector.
The Government of India-appointed SIAM and Automotive Components Manufacturers
Association (ACMA) are responsible in working for the development of the Indian automobile
industry.
Road Ahead
The future of the auto industry depends on the positive sentiments and the demand for vehicles in
the market. With the festival season coming up, the Indian auto sector will see a rise in demand
which is expected to bring in major growth. An auto dealer survey by firm UBS suggested that the
Indian auto industry, riding on trends like the upcoming festival season and decline in fuel price,
will observe a 16 per cent y-o-y growth in FY19.
Also, keeping up with international trends, there is expected to be a surge in the number of hybrid
vehicles in the Indian auto sector in the years to come.

The growth story for the Indian automobile industry in 2018 rode on the two-wheeler segment and
not on passenger cars or commercial vehicles, as high interest rates and a stuttering manufacturing
industry kept a check on demand.

16
The year also saw Competition Commission of India (CCI) levying a penalty of Rs.2,544.65 crore
($419) on 18 car makers for their restrictive trade practices by preventing independent repairers
coming into the market. Some of the leading car makers also had to recall some models over
defective components.

When other segments like passenger cars and commercial vehicles logged negative growth, the
two-wheeler makers registered around 17 percent growth between January and October. Riding on
the two-wheeler sector's growth, the automotive industry grew 9.8 percent by volume year-on-year
(YoY) between January and October.

"The two-wheeler segment is the only one that has clocked positive growth at 16.9 percent YoY
(year-on-year) to reach sales of nearly 17.5 million units by October. This can be attributed to the
low cost of two wheelers

in India," Vijay Kakade, vice president for automotive and transportation practice at Frost &
Sullivan, told IANS.

He said the light commercial vehicle (LCV) segment has been the worst hit, with sales reducing to
approximately 330,000 units -- an 19.9 percent YoY fall over 2017.

"The passenger car, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5
percent respectively during the period, compared to 2017. The reduction in sales can be attributed
to the slowdown and the high interest rates set by the RBI (Reserve Bank of India) reducing the
availability of finance options to the public," Kakade added.

"These segments have shown positive signs over the past few months, which is expected to lead to
growth in the next year."

"The year 2018 has been a year of stagnation, which is a positive sign as the decline has stopped.
The industry has shown signs of growth, albeit slower than expected, over the past few months,"
Kakade remarked.

P. Balendran, vice president, General Motors India, had similar views to share with IANS: "Of late,
we have seen some movements in new entries driven by novelty factors and some select
manufacturers have been getting the benefits too."
He said the market has not shown any movement forward, despite the excise duty reduction, while
the customer sentiment has not picked up due to sticky interest rates, which remain at high levels.

"Although fuel prices have started coming down significantly, the enquiry levels at showrooms
17
have come down and conversions are not taking place at all. The sales of diesel vehicles are also
tapering off because of the narrowing price gap vis-a-vis petrol," Balendran added.

Expecting the government to continue with a lower excise duty regime for small/mid-sized/big cars
and sports utility vehicles (SUV) till March 2019, Balendran said the rates should be continued till
the Goods and Services Tax ( GST) is introduced -- aiding the turnaround of the auto sector.

Terming 2018 a mixed bag for the automobile industry, Sumit Sawhney, chief executive and
managing director of Renault India, told that while there has been a sea change in the consumer
sentiment with a gradually improving economic climate in the country, the optimism has still to
translate into sustained sales growth.

"The industry is looking forward to the budget for pro-business policies to reignite the automobile
industry in India."

Highlights of India's automobile industry 2018:

* Overall growth was 9.8 percent by volume year-on-year (YoY) between January and October.

* Two-wheeler sector grew 16.9 percent

* Passenger car, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5 till
October

* LCV segment worst hit, with sales falling 19.9 percent YoY fall over 2017 till October
* Excise duty reduction on automobiles

* Competition Commission of India (CCI) fines 18 car-makers Rs.2,544.65 crore for restrictive
trade practices.

Auto manufacturers have been trying to cope with economical rough patch in last two years. Trying
to boost sales and implementing cost effective schemes just wasn’t enough. They also had to cut
many of their employees loose to stay somewhat balanced, in some cases. On a fashionable note,
senior employees were asked to take voluntary retirement (not sure what ‘voluntary’ is doing in
that sentence).

Tata Motors apart from giving customers attractive offers, gave 600 of their employees early
retirement offers, last month. Ashok Leyland too offered 500 of their employees with irresistible

18
retirement schemes, last year (pun intended).

Sales of Cars, SUVs, Vans, pick-ups, and entire commercial vehicle segment went south, with
passenger vehicle market encountering first decline in the decade. But what saved the overall
scenario was the two-wheeler market. It took 7.31% hike with motorcycle sales going 3.91% up
and scooter sales riding 23% north. Export sales figures also contributed to somewhat saving the
year with rise of 7.21%.

The downtrend left auto manufacturers with piled up inventory and stagnation. The interim budget
announced in February, gave a minor boost as all vehicles prices were reduced marginally, but it
hasn’t exactly helped boost sales yet. Automakers are expecting aid from the government’s new
budget by way of further tax cuts.

Sales figures of March 2018 shows 16.83% overall growth also by means of increased two-wheeler
sales. Commercial Vehicles have further dipped compared to March 2017 and passenger cars
stagnating below the graph. However, overall production has increased by 9.95% comparing March
figures of both years, suggesting auto makers’ confidence in ongoing fiscal to make better.

Launch of new A segment compact cars by various auto majors seems to be helpful in this
economy, for customers as well as value chain entities. Maruti Suzuki finished top on podium with
42% share in overall car sales, followed by Hyundai with 19% share.

Society of Indian Automobile Manufacturers (SIAM) expects a 6% growth over in the fiscal 2018-
19, with boost in manufacturing sector, new investment and fresh capacities in the industry. Vikram
Kirloskar, president of SIAM says, “Whichever government comes in…I am looking for stability in
excise duty and some reduction in taxes. We are an over-taxed industry.”

19
COMPANY PROFILE

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 Moto Corp Ltd. continues to maintain this position till date.

Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered
India, powered by its two wheelers. Hero Moto Corp Ltd., 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.

Mission

Hero Moto Corp’s 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

Strategy
Hero Moto Corp’s key strategies are to build a robust product portfolio across categories, explore
growth opportunities globally, continuously improve its operational efficiency, aggressively expand

20
its reach to customers, continue to invest in brand building activities and ensure customer and
shareholder delight.

Manufacturing
Hero MotoCorp two wheelers are manufactured across 3 globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of
Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the
hill state of Uttrakhand.

Technology
In the 2080’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-
stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It
became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with
the launch of the Glamour FI in June 2006.

Distribution
The Company's growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero MotoCorp’s extensive sales and
service network now spans over to 6000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.

Brand

The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero
MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and
creating global footprint. Building and promoting new brand identity will be central to all its
initiatives, utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground-level activation

HERO'S MANDATE

Hero is a world leader because of its excellent manpower, proven management, extensive dealer
network, efficient supply chain and world-class products with cutting edge technology from
Company, Japan. The teamwork and commitment are manifested in the highest level of customer
satisfaction, and this goes a long way towards reinforcing its leadership status

21
BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

13 Gen. (Retd.) V. P. Malik Non-executive & Independent Director

15 Mr. Analjit Singh Non-executive & Independent Director

16 Dr. Pritam Singh Non-executive & Independent Director

17 Ms. Shobhana Bhartia Non-executive & Independent Director

18. Mr. M. Damodaran Non-executive & Independent Director

19. Mr. Ravi Nath Non-executive & Independent Director

17. Dr. Anand C. Burman Non-executive & Independent Director

22
CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones
developed at the grassroots. The Company believes it has managed to bring an economically and
socially backward region in Dharuhera, Haryana, into the national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur
Highway. The Centre-complete with wide approach roads, clean water, and education facilities for
both adults and children-now nurtures a vibrant, educated and healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda factory at
Dharuhera for integrated rural development. This includes:

 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National Highway (NH -
8).
 Renovating primary school buildings and providing hygienic water and toilet facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-logging.
 Promoting non-conventional sources of energy by providing a 50 per cent subsidy on
biogas plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from
nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-educational
school with over 1600 students and 61 teachers. The school has a spacious playground, an ultra-
modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and
a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and
football grounds are used by the local villagers. In the near future, sports academies are planned for
volley ball and basket ball, in collaboration with National Sports Authority of India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational Training

23
Centre. So far 26 batches comprising of nearly 625 women have been trained in tailoring,
embroidery and knitting. The Company has helped women trained at this centre to set up a
production unit to stitch uniforms for Hero Honda employees. Interestingly, most of the women are
now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 2099, covering the nearby villages of Malpura,
Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Honda is
now in the process of imparting Adult Literacy Capsules to another 130 adults by getting village
heads and other prominent villagers to motivate illiterate adults.
Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by the
Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care
services to the local community. Free health care and medical camps are now a regular feature in
the Hero Group's community outreach program
KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY
At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in
making your world a better place to live in. Besides its will to provide a high-quality service to all
of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its
environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation programmers but
also expresses the increasingly inseparable balance between the economic concerns and the
environmental and social issues faced by a business. A business must not grow at the expense of
mankind and man's future but rather must serve mankind.
"We must do something for the community from whose land we generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy
We at Hero Honda are committed to demonstrate excellence in our environmental
performance on a continual basis, as an intrinsic element of our corporate philosophy.
To achieve this we commit ourselves to:

24
  Integrate environmental attributes and cleaner production in all our business processes and
practices with specific consideration to substitution of hazardous chemicals, where viable
and strengthen the greening of supply chain.
 Continue product innovations to improve environmental compatibility.
 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
 Institutionalize resource conservation, in particular, in the areas of oil, water, electrical
energy, paints and chemicals.
 Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:

 Innovation in products, processes and services.

 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may be
affected by its operations. We believe that the safe work practices lead to better business
performance, motivated workforce and higher productivity.
We shall create a safety culture in the organization by:

 Integrating safety and health matters in all our activities.

 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.
 Promoting safety and health awareness amongst employees, suppliers and contractors.
 Continuous improvements in safety performance through precautions besides participation
and training of employees.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX MOTORS)

25
PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS PVT
LTD. is established on 21st march 2003. The business is running by only one man. The owner
name is CH .Madhu Mathi the firm is located at habsiguda in Hyderabad.
Generally the sale will be either on cash basis or on institutional basis. Bank like
ICICI, HDFC and CENTURION are providing loans to customers.
Advertising strategy of phoenix motors:
They are giving the ads through newspapers, wall paintings, hoardings and field
staff. They are upgrading sales by introducing the schemes, group bookings, institutional sales and
customer door-to-door activities.
Categorization of Staff members:
Staff members are categorized for technicians, 25 members are allotted for field
staff, 5 members are recruited for sales for persons, 5 persons are placed for evaluating for spare
parts, 5 members are allotted for managerial accounts and another 3 persons for cash transaction
and other members are allotted for remaining work.
Customer relationship:
They entertain the showroom providing a customer’s huge having pool game,
internet facility and television with home there system. They provide bile maintenance programs on
every week.
According to other dealers PHOENIX motors in first in sales and best in service. They treat
customer, is the very important person at PHOENIX motors customer satisfaction is their motto,
why because, they will satisfied customer is the best advertisement. They provide better value for
the customers and as well as employees also. At PHOENIX motors the customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS:

Average they are selling 28 vehicles per day. PHOENIX motors PVT L.T.D is the A.P
s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader through quality dealer).
At PHOENIX motor they gave the quality service to the customers why because ‘the cost is long
forgotten but the quality is remembered for ever”. They treat quality has a...

Q Quest for excellence

U Understanding customer’s needs
26
 A Action to achieve customer’s appreciation.
L Leadership determined to be a leader
I involving all the people
T Team spirit to work for a common goal
Y Yard sticks to measure programs.
WARRANTY ON PROPRIETARY ITEMS:
Warranty on proprietary items like Tyros, Tubes and Battery etc, will be directly
handled by the respective original manufactures (OEM’s) except AMCO for batteries and Dunlop
and Falcon tires and Tubes. In case of any defect in proprietary items, other than the above two
mentioned OEM’S the dealers must approach the Brach office dealer of the respective manufacture.
For AMCO batteries and Dunlop and falcon tires, tubes claims will be accepted at our authorized
dealerships per the mutually agreed terms and conditions between HERO and of these two OEM’s
in case the claim is not accepted for invalid reasons. Then the claim along with the refusal note
form the OEM can be sent to the warranty section at gorgon plan after due to recommendation of
the area service engineer. If any other six services or subsequent paid services is not availed as per
the recommended schedule given in the owner’s manual. If HERO recommended engine oil is not
used. To normal wear & tear components like bulbs, electric wiring, filters, spark plug, clutch
plates, braded shoes, fasteners, shim washers, oil seals, gaskets, rubber parts (other than tyre and
tube) plastic components, chain$ sprockets and in case of wheel rim misalignment or bend.
If there is any damage due o modification or fittings of accessories other than ones recommended
by HERO. If the motor has been used in any competitive events like tracking races or rallies. If
there is any damage to the painted surface due to industrial pollution or other extraneous factors.
For clams made for any consequential damage due to any previous malfunction. For normal
phenomenon like noise, vibration, oil seepage, which do not affect the performance of the
motorcycles.
SOCIAL SERVICE ACTIVITIES
PHOENIX motors participate and conduct social service activities. Recently the phoenix
motors organized a BLOOD DONATION CAMP for the trust on 21 st January 2006.they motivated
on the consumers to participated in this camp and also provide certificate for the customers.

CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool game,
Internet facility and television with home theatre system. They provide bike maintenance programs
on every week. According to other dealers PHOENIX motors in first in sales and best in service.
They treat customer, is the very important person at PHOENIX motors customer satisfaction is
27
their motto, why because, the well satisfied customer is the best advertisement. They provide
better value for the customers and as well as employees also. At PHONIX motors the customer is
the boss.

SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix motors organize a
BLOOD DONATION CAMP for the trust in every year. They motivated on the customers to
participated in this camp and also provide Certificate for the customers.

28
 CHAPTER-V

DATA ANALYSIS & INTERPRETION

29
Size and growth of current assets and liabilities and Net working capital of HERO
MOTOCORP LIMITED during the period 2017-18 to 2021-22.
(All amounts are in Cr)
Year Current Growth Rate Current Growth Rate (%) Net W.C
Assets (%) Liabilities
2017-18 31900.29 140 23803.06 140 7997.23
2018-19 41817.78 171.184217 29197.75 162.663851 16517
2019-20 52198.18 165.038193 32664.91 151.874751 19493.2
2020-21 55487.68 146.383548 36584.65 151.999849 19903
2021-22 72423.07 170.520991 58092.19 198.788318 18330.9

80000

70000

60000

50000

40000

30000

20000

10000

0
Current Assets Growth Rate Current Growth Rate Net W.C
(%) Liabilities (%)

Interpretation:

The Current assets and the current liabilities of HERO MOTOCORP LIMITED are in the
increasing stage but at the financial year 2021-2022 it is in the decreasing stage because of
increasing in the current liabilities and the growth rate is 170.52. The net working capital is
also in the increasing stage.

30
 WORKING CAPITAL TURNOVER RATIO
(All amounts are in Cr)
Year
Sales(Income) Networking Capital Ratio

2017-18 4815.16 7997.23 0.601998

2018-19 7028.66 16517.03 0.561973
2019-20 9203.19 19493.20 0.472161
2020-21 14176.83 19903.03 0.537841
2021-22 15748.32 18330.92 0.8197882

25000

20000

15000
Sales(Income)
Networking Capital
10000
Ratio

5000

0
2016-17 2017-18 2018-19 2019-20 2020-21

Turnover Ratio:

Debtors Turnover Ratio expresses the relationship between debtors and sales. A high Debtors
Turnover Ratio or low Debt collection period is indicative of sound credit management policy.

31
 Table shows Debtors Turnover Ratio of HERO MOTOCORP LIMITED. during 2017-18 to
2021-22.

(All amounts are in Cr)

Year Net Credit Sales(Income) Avg. Debt Ratio
2017-18 4815.16 40984.92
0.157388
2018-19 7028.66 55172.04
0.167488
2019-20 9203.19 71839.39
0.168824
2020-21 14176.83 71967.91
0.181668
2021-22 15748.32 87014.02
0.175022

100000
90000
80000
70000
60000 Net Credit Sales(Income)
50000 Avg. Debt
40000 Ratio

30000
20000
10000
0

From the above table, it is observed that the HERO MOTOCORP LIMITED debtor’s turnover
ratio shows a good sigh. The company noted a maximum ratio of 18.16 in the year 2018-19 and the
minimum ratio in the year of 2018-19 is 15.73. present year i.e on 2021-22 is 17.50.
If we observed the above table the ratio is increasing the year 2017-18 is 15.73 in the year 2019-20
in the year but it is decreased in the year 2021-22. It shows a good sign for the company.
Current Ratio:
It is the ratio of the current assets current liabilities this ratio is used to know the company’s ability
to meet its current obligations. The standard norm for the current ratio is 2:1
Current ratio = current Assets / Current liabilities.

32
 Table showing current ratio of HERO MOTOCORP LIMITED during the period 2017-18 to
2021-22
(All amounts are in Cr)
Year Current Assets Current Liabilities Ratio

2017-18 31900.29 23803.06

1.335975
2018-19 41817.78 29197.75
1.428664
2019-20 52198.18 32664.91
1.596763
2020-21 55487.68 36584.71
1.517690
2021-22 72423.07 58092.19
1.246692

80000

70000

60000

50000
Current Assets
40000 Current Liabilities
Ratio
30000

20000

10000

It is observed that the HERO MOTOCORP LIMITED current rationing a increasing trend; the
company’s liquidity position is satisfactory
The current ratio increased slightly up to 2016-17 is 1.42. But in 2017-18 it declined because of
increase in current liabilities, and then it started to decrease further in2017-18 as 0.33. if the
company maintains to increase the ratio it can meet obligations.
Quick Ratio:
Quick ratio is relation between quick assets and current liabilities. The term quick assets, which can
be converted into cash with a short notice. This category also includes cash bank balances short –
term investments and receivables.
Quick ratio = Quick Assets / current liabilities

33
Table showing quick ratio of HERO MOTOCORP LIMITED during the period 2017-18 to
2021-22.

(All amounts are in Cr)

Year Quick Assets Current Liabilities Ratio

2017-18 31900.29 23803.06 1.335975

2018-19 41817.78 29197.75 1.428664
2019-20 52198.18 32664.91 1.596763
2020-21 53987.54 36584.71 1.475685
2021-22 62548.67 58092.19 1.076718

70000

60000

50000

40000 Quick Assets

Current Liabilities
30000
Ratio
20000

10000

0
2016-17 2017-18 2018-19 2019-20 2020-21

It is observed that the HERO MOTOCORP LIMITED current rationing a increasing trend; the
company’s liquidity position is satisfactory
The current ratio increased slightly up to 2016-17 is 1.33. But in 2017-18 it declined because of
increase in current liabilities, and then it started to decrease further in2021-22 as 1.07. if the
company maintains to increase the ratio it can meet obligations

34
 Composition of current Assets
(all the amounts are in Cr)

Particulars 2017-18 2018-19 2019-20 2020-21 2021-22 Avg.

Sundry Debtors 40984.92 55172.04 71839.39 71967.91 87014.02 326534.28

Cash and 2147.72 2017.49 2207.90 2,948.23 3928.30 17208.64

Balance with
RBI
Advances 29329.31 39079.23 48468.98 53,027.63 66170.71 236065.86

Balance with 363.26 619.06 1881.26 3,031.66 2334.06 7828.3

bank

Total 72785.2 96845.8 163597.5 170975.43 199433.09

350000

300000

250000
Sundry Debtors
200000
Cash and Balance with RBI
150000
Advances
100000 Balance with bank

50000 Total

35
The income statement is also called as income statement, it is considered to be the most

useful of all financial statements. It prepared by a business concern in order to know the

profit earned and loss sustained during a specified period. It explains what has happened to

a business as a result of operations between two balance sheet dates. For this purpose it

matches the revenues and cost incurred in the process of earning revenues and shows the

net profit earned or loss suffered during a particular period.

The nature of Income which is a focus of the income statement can be well understood if

business is taken as an organization that uses “Input” to produce “Output”. The output of

the goods and services that the business provides to its customers. The values of these

outputs are the goods and services that the business provides to its customers. The values

of these outputs art the amounts paid by the customers for them. These amounts are called

“revenues” in the accounting. The inputs are the economic resources used by the business

in providing these goods and services. These are termed “expenses” in accounting.

The comparative balance sheet analysis is the study of the same items, group of items and

computed items in two or more balance sheets of the same enterprise on different dates. The

changes in periodic balance sheet items reflect the conduct of a business. The changes can be

observed by comparison of the balance sheet at the beginning and at the end of a period and these

changes can help in informing an opinion about the progress of and enterprise.

36
 Working capital turnover ratio Of HERO MOTOCORP LIMITED.

Implementing an effective working capital management system is an excellent way for many
companies to improve their earnings. The two main aspects of working capital management are
ratio analysis and management of individual components of working capital.

Working capital turnover ratio 2022

Working capital turnover ratio 2021 2022
Total current Assets
71967.91 87014.02
Sundry Debtors
Cash and Balances with RBI 2,948.23 3928.3

Balance with Bank 3,031.66 2334.06

Advances 53,027.63 66170.71

170975.43 199433.09
Total
Total Current Liabilities

Borrowings 16,895.58 16189.71

Other Liabilities 3,333.82 4857.97

Contingent Liabilities 46,903.54 68092.19

63,172.94 85099.83
Total

67842.49 74333.26
Net working capital
Increase\decrease in net working capital 6490.77

37
 6216.170
21970.29
17813.64

16667.95 19697.5

Interpretation:
The networking capital of HERO MOTOCORP LIMITED has been increased to 6490.77 Cr the
financial position i.e. the performance of HERO MOTOCORP LIMITED has increased and the
current assets defects its current liability.

38
 Working capital turnover ratio Of HERO MOTOCORP LIMITED.

Working capital turnover ratio 2021

Working capital turnover ratio 2020 2021
Total current Assets
71839.39 71967.91
Sundry Debtors
2207.90 2,948.23
Cash and Balances with RBI
1881.26 3,031.66
Balance with Bank
48468.98 53,027.63
Advances

163597.53 170975.43
Total
Total Current Liabilities

Borrowings 20414.62 16,895.58

Other Liabilities 2789.81 3,333.82

Contingent Liabilities 42157.47 46,903.54

65318.90 63,172.94
Total

58279.63 67842.49
Net working capital
Increase\decrease in net working capital 9562.86

39
 100000
90000
80000
70000
60000
Series1
50000
Series2
40000
30000 Series3

20000
10000
0

Interpretation:
The networking capital of HERO MOTOCORP LIMITED has been increased to 9562.86 Cr the
financial position i.e. the performance of HERO MOTOCORP LIMITED has increased and the
current assets defects its current liability.

40
 Working capital turnover ratio 2020
Working capital turnover ratio 2019 2020
Total current Assets
55172.04 71839.39
Sundry Debtors
2017.49 2207.90
Cash and Balances with RBI
619.06 1881.26
Balance with Bank
39079.23 48468.98
Advances

96845.82 163597.53
Total
Total Current Liabilities

Borrowings 17595.52 20414.62

Other Liabilities 2553.67 2789.81
Contingent Liabilities 18319.52 42157.47

36468.71 65318.90
Total

60377.15 58279.63
Net working capital
Increase\decrease in net working capital 2097.48

41
 100%
90%
80%
70%
60%
50%
40%
30% Series3
20% Series2
10%
0% Series1

Interpretation:
The networking capital of HERO MOTOCORP LIMITED has been decreased to 2097.48 Cr the
financial position i.e. the performance of HERO MOTOCORP LIMITED has increased and the
current assets defects its current liability.

42
 Working capital turnover ratio 2019
Working capital turnover ratio 2018 2019
Total current Assets
40984.92 55172.04
Sundry Debtors
2147.72 2017.49
Cash and Balances with RBI
363.26 619.06
Balance with Bank
29329.31 39079.23
Advances

72785.21 96845.82
Total
Total Current Liabilities

Borrowings 15723.95 17595.52

Other Liabilities 3032.36 2553.67
Contingent Liabilities 16291.30 18319.52

27047.61 36468.71
Total

45737.6 60377.15
Net working capital
Increase\decrease in net working capital 18639.51

43
 300000

250000

200000
Series3

150000 Series2
Series1
100000

50000

Interpretation:
The networking capital of HERO MOTOCORP LIMITED has been increased to 60377.15 Cr the
financial position i.e. the performance of HERO MOTOCORP LIMITED has increased and the
current assets defects its current liability.

44
 Working capital turnover ratio 2018

Working capital turnover ratio 2018

Working capital turnover ratio 2016 2017
Total current Assets
30026.98 40984.92
Sundry Debtors
2085.67 2147.72
Cash and Balances with RBI
218.59 363.26
Balance with Bank
20775.05 29329.31
Advances

53142.29 72785.21
Total
Total Current Liabilities

Borrowings 6180.51 15723.95

Other Liabilities 2869.42 3032.36
Contingent Liabilities 4196.19 16291.30

17176.08 27047.61
Total

39936.21 45737.6
Net working capital
Increase\decrease in net working capital 5801.39

350000

300000

250000
Series3
200000
Series2
150000 Series1

100000

50000
45
0
Interpretation:
The networking capital of HERO MOTOCORP LIMITED has been increased to 45737.60 Cr the
financial position i.e. the performance of HERO MOTOCORP LIMITED has increased and the
current assets defects its current liability.

46
CHAPTER-VI
FINDINGS

47
 FINDINGS

1. The HERO MOTOCORP LIMITED net working capital is satisfactory between the

years 2018-22 since it shows increasing trend ; but after that it is in declining

position.

2. The current ratio of HERO MOTOCORP LIMITED is satisfactory during the

period of study 2015-16 to 2021-22. It is increased but after that it is declining.

3. The average quick ratio of HERO MOTOCORP LIMITED is not good though the

quick ratio is showing maximum value of 1.07 in the year 2021-22 and then it is

declining to be deal.

4. Fixed assets turnover ratio of HERO MOTOCORP LIMITED increased. The

company has to maintain this.

5. Inventory turnover ratio of HERO MOTOCORP LIMITED is also increased

gradually, without any fit falls up to 2017-18. In the year 2017-18 it is inclined, and

again it has increased in the year 2020-21. Good inventory management is good

sign for efficient management

6. Total Assets turnover ratio of HERO MOTOCORP LIMITED is not satisfactory

because it is always below one, except in the year 2021-22 having a value of 5.67

7. Return on investment is not satisfactory. This indicates that the company’s funds

are not being utilized in a better way.

48
CHAPTER-VII
SUGGESTIONS
AND
CONCLUSIONS

49
 SUGGESTIONS

1. Improve position funds should be utilized properly.

2. Better Awareness to increase the sales is suggested.

3. Cost cut down mechanics can be employed.

4. Better production technique can be employed.

5. The investment on raw material should be made as per the requirement. Unnecessary
investment may block up the funds.
6. Neither too high nor too low inventory turnover ratios may reduce profit and liquidity
position of the industry. So, proper balance should be made to increase profits and to
ensure liquidity.
7. The raw material should be acquired from the right source at right quality and at right cost.
8. The process that was being used by HERO MOTOCORP LIMITED with the purchasing
department should undergo changes; so that, it seeks enhance the celerity of the delivery of
a product without compromising its quality by improving the utilization of materials, labor
and equipment.

50
 CONCLUSIONS

1. The HERO MOTOCORP LIMITED Net Profit Ratio is showing profit in the year

2017-18. These event is an expected one because since from the previous two years

it is showing the decline stage in Net Profit Ratio.

2. Profit Margin of HERO MOTOCORP LIMITED is decreasing and showing

negative profit because there is increase in the price of banking services.

3. The HERO MOTOCORP LIMITED Net Working Capital Ratio is satisfactory.

4. The HERO MOTOCORP LIMITED return on Total Assets ratio shows a negative

sign in the year 2015-16

5. The Operating Ratio of HERO MOTOCORP LIMITED increase in the year 2017-

18, in the year 2021-22 and reached in the year 2018-19 So the company has to

reduce its operating costs.

6. The Operating Ratio of HERO MOTOCORP LIMITED satisfactory. Due to

increase in cost of production, this ratio is decreasing. So the has to reduce its office

administration expenses

51
 BIBLIOGRAPHY

BOOKS

Financial Management Written By M.Y. Khan & P.K. Jain

Financial Management Written By Prasanna Chandra

Financial Management Written By I. M. Pandey

Financial Management Written By S. N. Maheswari

Annual reports of HERO MOTOCORP LIMITED: 2018-2022.

www.heromotocorp.com

www.bankingindia.com

www.evanimics.com

www.damodaram.com

www.investopedia.com

www.valuebasedmanagement.net

52