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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 NabilMBA 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 businessAdministration” 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 NABILMBA-2015-17IPSAR

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 STUDYFinancial 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 andHonda 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 laid2013- 50 Million cumulative 2 wheelers production.

•Board of Directors

•Leadership Team

Mr. Ravi SudSr. Vice President & Chief Financial Officer

Mr. Anil DuaSr. Vice President - Sales, Marketing & Customer Care

Mr. Vikram KasbekarSr. Vice President - Head of Operations & Supply Chain

Dr. Anadi S. PandeVice President - HRM, Corporate Planning & Strategy

Mr. Vijay SethiVice President & Chief Information Officer

Mr. Neeraj MathurVice President - Strategic Sourcing &Supply Chain

Mr. Harjeet SinghVice President & Head R&D

Mr. Deepak MokashiVice President & Head International Business

VISION & MISSION OF THE COMPANY

VISSION:company's new identity, reflects its

commitment towards providing worldclass mobility solutions with renewed

focus on expanding company's footprintin 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 MDMr. Pradip Dindodiya- Non executive & independent director

V.P. Malik- Non executive & independent directorMr. Sumankant Munjal- Non executive & independent

directorMr. Paul Edgerley- Non executive

Dr. Anand Burman- Non executive & independent directorM. Damodaran- Non executive & independent directorDr. 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 OFFICESChandigarhDehradun

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

category2007Bike of the Year" - CBZ X-treme (up to 150 cc category)• "Bike Technology of the Year" - Glamour PGM FI

Cont….2008Top Gear Design Awards 2008 - Hunk wins Bike of the Year.• NDTV Profit Car India & Bike India Awards -

Bike Manufacturer of the year2009Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category• NDTV Profit Business Leadership Awards

2009 - two-wheeler category

Achievement & AwardsAwards1991(Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd.)1995National 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.2004ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India.

Cont….2006No. 1 in automobile industry by TNS Corporate Social Responsibility Award.2008NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award 2008"

HERO MOTO CORP LTD FINANCIAL-ANALYSIS

INCOME STATEMENT FIGURES AS PER FINANCIAL STATEMENTS Mar-08 March-15 March-14 March-13 March-12 March-11Year 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 20815.29Excise Duty 2 1717.64 1880.35 1891.8 1655.99 1417.36NET SALES 27585.3 25275.47 23768.11 23579.03 19397.93other income 492.74 446.38 398.38 364.57 289.62TOTAL 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 14198.88Personal Expenses 1172.87 930.04 820.92 735.52 618.95Selling Expeneses 0 0 0 0 0Administrative Expenses 2850.91 2339.09 2030 1728.22 1867.1Expenses Capitalised 0 0 0 0 0provision Made 6 0 0 0 0 0TOTAL EXPENDITURE 24,043.12 21,735.41 20,483.63 19,960.25 16,785.40Operating Profit 3,542.18 3,540.06 3,284.48 3,618.78 2,612.53EBITDA 4,034.92 3,986.44 3,682.86 3,983.35 2,902.15Depreciation 539.97 1,107.37 1,141.75 1,097.34 402.38Other Writes-offs 9 0 0 0 0 0EBIT 3494.95 2879.07 2541.11 2886.01 2499.77Interest 11.09 11.82 11.91 21.3 15.17EBT 3483.86 2867.25 2529.2 2864.71 2484.6taxes

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 Year Ended March 31 INCOMESales TurnoverExcise DutyNET SALESother incomeTOTAL INCOME EXPENDITUREManufacturing ExpensesMaterial ConsumedPersonal ExpensesSelling ExpensesAdministrative ExpensesExpenses Capitalisedprovision MadeTOTAL EXPENDITUREOperating ProfitEBITDADepreciationOther Writes-offsEBITInterestEBTtaxesprofit and loss for the year

Common-Size AnalysisMarch-15 March-14 March-13 March-12 March-11

104.36% 105.57% 106.18% 105.39% 105.73% 6.12% 7.31% 7.83% 6.92% 7.20%

98.25% 98.26% 98.35% 98.48% 98.53% 1.75% 1.74% 1.65% 1.52% 1.47%

100.00% 100.00% 100.00% 100.00% 100.00%

0.56% 0.53% 0.53% 0.47% 0.51% 70.73% 71.26% 72.43% 72.60% 72.12%

4.18% 3.62% 3.40% 3.07% 3.14% 0.00% 0.00% 0.00% 0.00% 0.00%

10.15% 9.09% 8.40% 7.22% 9.48% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

85.63% 84.50% 84.76% 83.36% 85.26% 12.62% 13.76% 13.59% 15.11% 13.27% 14.37% 15.50% 15.24% 16.64% 14.74%

1.92% 4.31% 4.72% 4.58% 2.04% 0.00% 0.00% 0.00% 0.00% 0.00%

12.45% 11.19% 10.52% 12.05% 12.70% 0.04% 0.05% 0.05% 0.09% 0.08%

12.41% 11.15% 10.47% 11.96% 12.62% 3.36% 2.95% 1.70% 2.03% 2.42% 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 oprating profit all over the 5 year period 2011-15.

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 Year Ended March 31 INCOMESales TurnoverExcise DutyNET SALESother incomeTOTAL INCOME EXPENDITUREManufacturing ExpensesMaterial ConsumedPersonal ExpensesSelling ExpenesesAdministrative ExpensesExpenses Capitalisedprovision MadeTOTAL EXPENDITUREOperating ProfitEBITDADepreciationOther Writes-offsEBITInterestEBTtaxesprofit and loss for the year

Comparative AnalysisMarch-15 March-14 March-13 March-12 March-11

7.91% 5.51% 1.68% 21.23% 20815.298.65% 0.61% 14.24% 16.84% 1417.369.14% 5.96% 0.80% 21.55% 19397.93

10.39% 10.75% 9.27% 25.88% 289.629.16% 6.05% 0.93% 21.62% 19,687.55

15.28% 6.02% 14.66% 12.13% 100.478.36% 4.50% 0.69% 22.43% 14198.88

26.11% 11.73% 11.61% 18.83% 618.95 NA NA NA NA 0

21.88% 13.21% 17.46% 7.44% 1867.1 NA NA NA NA 0 NA NA NA NA 0

10.62% 5.76% 2.62% 18.91% 16,785.400.06% 7.22% 9.24% 38.52% 2,612.531.22% 7.62% 7.54% 37.26% 2,902.15

51.24% 3.10% 4.05% 172.71% 402.38 NA NA NA NA 0

21.39% 11.74% 11.95% 15.45% 2499.776.18% 0.76% 44.08% 40.41% 15.17

21.51% 11.79% 11.71% 15.30% 2484.624.40% 45.79% 15.52% 2.04% 476.8620.46% 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 the5 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 interestIs 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 ANALYSESA 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

INCOME STATEMENT Year Ended March 31 INCOMESales TurnoverExcise DutyNET SALESother incomeTOTAL INCOME EXPENDITUREManufacturing ExpensesMaterial ConsumedPersonal ExpensesSelling ExpenesesAdministrative ExpensesExpenses Capitalisedprovision MadeTOTAL EXPENDITUREOperating ProfitEBITDADepreciationOther Writes-offsEBITInterestEBTtaxesprofit and loss for the year

Trend AnalysisMarch-15 March-14 March-13 March-12 March-11

Base Year 2002

140.78% 130.46% 123.27% 121.23% 100.00%121.19% 132.67% 133.47% 116.84% 100.00%142.21% 130.30% 122.53% 121.55% 100.00%170.13% 154.13% 137.55% 125.88% 100.00%142.62% 130.65% 122.75% 121.62% 100.00%

157.73% 136.82% 128.58% 112.13% 100.00%139.88% 129.09% 123.27% 122.43% 100.00%189.49% 150.26% 132.63% 118.83% 100.00%

NA NA NA NA NA152.69% 125.28% 108.72% 92.56% 100.00%

NA NA NA NA NANA NA NA NA NA

143.24% 129.49% 122.03% 118.91% 100.00%135.58% 135.50% 125.72% 138.52% 100.00%139.03% 137.36% 126.90% 137.26% 100.00%134.19% 275.21% 283.75% 272.71% 100.00%

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!139.81% 115.17% 101.65% 115.45% 100.00%

73.10% 77.92% 78.51% 140.41% 100.00%140.22% 115.40% 101.80% 115.30% 100.00%197.79% 158.99% 86.20% 102.04% 100.00%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

Year Ended March 31 Schedule Schedule Schedule 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 2,956.06Minority 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 1,471.04Deffered tax liablity - net 0.00 0.00 0.00 0.00 0.00

Total 6,541.33 5,599.87 5,308.40 5,301.22 4,427.10APPLICATION 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 5,128.75Current 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 -4,831.89Miscellaneous 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

6

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.

Common Size AnalysisMarch-15 March-14 March-13 March-12 March-11

0.61% 0.71% 0.75% 0.75% 0.90%0.00% 0.00% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 0.00% 0.00%

99.39% 99.29% 93.56% 80.17% 65.87%

0.00% 0.00% 5.69% 19.08% 33.23%0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 5.69% 19.08% 33.23%0.00% 0.00% 0.00% 0.00% 0.00%100% 100% 100% 100% 100%

71.82% 67% 83% 94% 116%27.29% 27% 26% 23% 24%80.34% 72.42% 98.02% 98.98% 98.79%19.66% 27.58% 0.00% 1.02% 1.21%

0.00% 0.00% 0.00% 0.00% 0.00%

48.22% 73.02% 68.27% 74.78% 115.85%

12% 12% 12% 13% 12%21% 16% 13% 5% 3%

2% 2% 3% 1% 2%0% 0% 0% 0% 0%

21% 21% 26% 20% 17%

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

28.33% 27.29% 46.92% 109.14%

0.00% 0.00% 0.00% 0.00% 0.00%

100% 100% 100% 100% 100%

HERO MOTO CORP LTDBALANCE SHEET

Year Ended March 31

SOURCES OF FUNDSShareholder's FundsCapitalShare Application Money, pending allotmentEmployee Stock Option OutstandingReserves & Surplus Minority InterestAmount Received against issue of warrantsLoan FundsSecured LoansUnsecured LoansOthers Deffered tax liablity - netTotal APPLICATION OF FUNDSFixed AssetsGross BlockDepreciation & Impairment LossNet BlockCapital Work-In-ProgressAdvances against capital expenditure Investments

Current Assets, Loans & AdvancesInventoriesSundry DebtorsCash & Bank BalancesOther Current AssetsLoans & Advances Current Liabilities & ProvisionsLiabiltiesProvisions Net Current AssetsMiscellaneous expenditure(to the extent not written off or adjusted)Total

6

• 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.

Comparative AnalysisMarch-15 March-14 March-13 March-12 March-11

0.00% 0.00% 0.00% 0.00% 39.94

NA NA NA NA 0.00NA NA NA NA 0.00

16.93% 11.95% 16.86% 45.74% 2,916.12 NA NA 70.12% 31.25% 1471.04NA NA NA NA 0.00 0.00NA 100.00% 70.12% 31.25% 1,471.04NA NA NA NA 0.00

16.81% 5.49% 0.14% 19.74% 1,471.04

24.90% 15.04% 11.11% 2.76% 5,122.3217.59% 11.94% 13.48% 14.70% 1,042.0429.84% 26.95% 18.88% 7.22% 4,080.2816.57% 1275.60% 59.86% 22.26% 49.96

NA NA NA NA 0.00

22.86% 12.83% 8.59% 22.71% 5,128.75

21.80% 5.15% 5.74% 28.70% 524.9350.95% 38.43% 144.21% 108.52% 130.5935.53% 35.10% 135.67% 7.41% 71.52

NA NA NA NA 0.0014.50% 14.15% 30.34% 45.31% 740.23

9.56% 0.34% 17.28% 32.97% 5218.0949.84% 10.73% 32.09% 0.83% 1081.07

-84.99% -9.51% -41.77% -48.52% -4831.89%

NA NA NA NA 0.00%

16.81% 5.49% 0.14% 19.74% ##########

HERO MOTO CORP LTD

BALANCE SHEET Year Ended March 31

SOURCES OF FUNDSShareholder's FundsCapitalShare Application Money, pending allotmentEmployee Stock Option OutstandingReserves & Surplus Minority InterestAmount Received against issue of warrantsLoan FundsSecured LoansUnsecured LoansOthers Deffered tax liablity - netTotal APPLICATION OF FUNDSFixed AssetsGross BlockDepreciation & Impairment LossNet BlockCapital Work-In-ProgressAdvances against capital expenditure Investments

Current Assets, Loans & AdvancesInventoriesSundry DebtorsCash & Bank BalancesOther Current AssetsLoans & Advances Current Liabilities & ProvisionsLiabiltiesProvisions Net Current AssetsMiscellaneous expenditure(to the extent not written off or adjusted)Total

6

• 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 Year Ended March 31

SOURCES OF FUNDSShareholder's FundsCapitalShare Application Money, pending allotmentEmployee Stock Option OutstandingReserves & Surplus Minority InterestAmount Received against issue of warrantsLoan FundsSecured LoansUnsecured LoansOthers Deffered tax liablity - netTotal APPLICATION OF FUNDSFixed AssetsGross BlockDepreciation & Impairment LossNet BlockCapital Work-In-ProgressAdvances against capital expenditure Investments Current Assets, Loans & AdvancesInventoriesSundry DebtorsCash & Bank BalancesOther Current AssetsLoans & Advances Current Liabilities & ProvisionsLiabiltiesProvisions Net Current AssetsMiscellaneous expenditure(to the extent not written off or adjusted)Total

6

Trend Analysis

March-15 March-14 March-13 March-12 March-11

100.00% 100.00% 100.00% 100.00% 100.00%

NA NA NA NA NANA NA NA NA NA

222.95% 190.66% 170.31% 145.74% 100.00%

0.00% 0.00% 20.54% 68.75% 100.00%0.00%NA #DIV/0! #DIV/0! #DIV/0!

= 0.00% 0.00% 20.54% 68.75% 100.00%

#DIV/0! NA #DIV/0! #DIV/0! #DIV/0!147.76% 126.49% 119.91% 119.74% 100.00%

91.72% 73.43% 86.43% 97.24% 100.00%171.33% 145.70% 130.16% 114.70% 100.00%

71.38% 54.98% 75.26% 92.78% 100.00%

1426.24% 1709.59% 124.28% 77.74% 100.00%#DIV/0! NA #DIV/0! #DIV/0! #DIV/0!

61.50% 79.72% 70.66% 77.29% 100.00%

155.35% 127.55% 121.30% 128.70% 100.00%

1064.09% 704.94% 509.23% 208.52% 100.00%222.66% 164.29% 253.13% 107.41% 100.00%

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!186.16% 162.59% 189.39% 145.31% 100.00%

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

4.93% 32.83% 29.98% 51.48% 100.00%

NA NA NA NA NA

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

FORfinancial 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 38.64Advance 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 31.88Interest Paid 48.25 115.94      Dividend Paid 583.08 476.55 182.68 168.63 90.98Unclaimed 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 thePositive 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 cashInflow form operating activity.

Chapter-III15-Ratio analysis and interpretation.16-Conclusion17-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 247.54% respectively .

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 Margin

Gross Profit(Sales-Cost of 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 share

Net profit available for 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.

BIBLIOGRAPHYhttp://

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.99http://money.sulekha.com/hero-honda-motors_key-financial-ratios

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