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CHAPTER-I

INTRODUCTION

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PROLOGUE TO FINANCIAL STATEMENT ANALYSIS

Monetary explanation investigation can be alluded as a procedure of understanding


the hazard and productivity of an organization by dissecting announced budgetary
data, particularly yearly and quarterly reports. Putting another way, budgetary
proclamation investigation is an examination about bookkeeping proportions among
different things incorporated into the accounting report. These proportions incorporate
resource use proportions, benefit proportions, use proportions, liquidity proportions,
and valuation proportions. Besides, budgetary explanation investigation is a
measuring technique for deciding the past, current, and imminent execution of an
organization.

Points of interest of monetary articulation investigation

The diverse favorable circumstances of monetary proclamation investigation are


recorded beneath:

• The most critical advantage if monetary articulation investigation is that it


gives a plan to the speculators about choosing putting their assets in a specific
organization.

• Another preferred standpoint of money related articulation examination is that


administrative specialists like IASB can guarantee the organization following the
required bookkeeping models.

• Financial articulation examination is useful to the administration organizations


in investigating the tax assessment owed to the firm.

• Above all, the organization can break down its own execution over a particular
day and age.

Money related proclamations are arranged fundamentally for basic leadership. They
assume an overwhelming job in setting the structure of administrative choices. In any

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case, the data gave in the monetary proclamations isn't an end in itself as no important
ends can be drawn from these announcements alone. Be that as it may, the data gave
in the monetary proclamations is of colossal use in settling on choices through
examination and elucidation of money related explanations. Budgetary examination
'the way toward recognizing the monetary qualities and shortcomings of the firm by
legitimately setting up connection between the things of the asset report and the
benefit and misfortune account'. There are different strategies or procedures utilized in
examining budgetary proclamations money related articulations are an imperative
wellspring of data for assessing the execution and prospects of firm, if legitimately
dissected and translated these announcements can give profitable bits of knowledge
into association's execution. Examination of money related articulations is if
enthusiasm to moneylenders, financial specialists, security expert, chief and others.

Money related proclamations investigation might be improved the situation an


assortment of purposes, which may run from basic examination of here and now
liquidity position of the shape to a far reaching appraisal of the qualities and
shortcoming of the firm in different territories, it is useful in surveying corporate
greatness , passing judgment on layaway value guaging security rating, assessing
natural estimation of value shares anticipating liquidation and evaluating market
chance.

MONETARY ARTICULATIONS:
Supervisors, investors, loan bosses and other intrigued bunches look for reply to the
accompanying inquiry regarding firm:
• What is the money related position of the firm at a given purpose of time?
• How has the firm performed fiscally over a given timeframe?
• What have been the sources and employments of money over a given period?
To answer these inquiries, bookkeeper gets ready two rule articulations, the Balance
sheet and the benefit and misfortune account, subordinate explanation, the Cash Flow
proclamation.

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Investigation of money related explanation

Investigation alludes to the procedure of basic examination of the money related data
contained in the budgetary proclamation with the end goal to comprehend and settle
on choices in regards to the tasks of the firm. The investigation is essentially
investigation of the relationship among different budgetary actualities and figure as
given in an arrangement of monetary proclamations. Complex figures as given in this
announcements are dissected\broken up into basic and variable components and huge
relationship are built up between the components of similar articulations are
distinctive monetary explanations.

This procedure of dismemberment, building up and recognizing the monetary


shortcomings and qualities of the firm. It is characteristic of two parts of a firm i.e.
The benefit and the budgetary position and it are what are known as the destinations
of the investigation.

SORTS OF FINANCIAL ANALYSIS

Based on material utilized based on usual way of doing things

I.On the premise of material utilized:- According to material utilized,


Money related investigation can be of two kinds:
1. Outside investigation:-
This examination is finished by untouchables who don't approach the nitty gritty
inside bookkeeping records of the business firm. These untouchables incorporate
speculators, potential financial specialists, loan bosses, potential banks, government
organizations, credit offices and the overall population.
2. Inward Analysis:-
The investigation directed by people who approach the inward bookkeeping records
of a business firm is known as interior examination. Such an examination can, thusly,
be performed by officials and representatives of the association and additionally
government organizations which have statutory forces vested in them.

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II. Based on usual methodology:-
As per the technique for task followed in the investigation, money related
examination can likewise be of
1. Horizontal examination:-
Flat investigation alludes to the examination of monetary information of an
organization for quite a long while. The figures for this sorts of examination are
introduced on a level plane over various segments. The figures of the different year
are contrasted and standard or base year. This kind of examination is additionally
'Dynamic investigation's as it depends on the information from year to year as
opposed to on
2. Vertical Analysis:-
Vertical examination alludes to the investigation of relationship of the different things
in the money related explanations of one bookkeeping period. In the sorts of
investigation is the figures from monetary articulation of a year are contrasted and a
base chose from that year's announcement. It is otherwise called 'Static examinations.
Methodology of Financial Statements Analysis
Comprehensively talking there are three stages associated with the investigation of
monetary proclamations. There are:
i)Selection,
ii)Classification,
iii)Interpretation.
The initial step includes choice of data (information). The second step included is the
systematic characterization of the information and the third step incorporates reaching
of internees and determinations.
The accompanying methodology is embraced for the investigation and
Interpretation of financial statements:
1) The investigator ought to familiarize himself with the standards and proposes of
bookkeeping.
2) The degree of investigation ought to be resolved so the circle of work might be
chosen.
3) The money related information given in the announcements ought to be re-sorted
out and re-orchestrated.

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4) A relationship is built up among money related proclamations with the assistance
of instruments and strategies of investigation, for example, proportions, patterns,
normal size, reserves stream and so on.,

5) The data is translated in a straightforward and reasonable way. The noteworthiness


and utility of money related information is clarified for helping choice taking.

6) The ends drawn from elucidation are exhibited to the administration as reports.

GOALS OF FINANCIAL STATEMENTS

Extensively the goal of the Analysis of Financial explanation is to comprehend the


data contained in the monetary proclamation with a view to the shortcoming and
qualities of the firm and to make gauge about the future prospects of the firm and their
by empowering the money related investigator to take diverse choice in regards to the
activity of the firm. The goals of the investigation can be recognized as:

a. To evaluate the present gainfulness and working effectiveness of the firm in general
and additionally for its diverse offices

b. To discover the relative significance of various parts of the monetary position of


the firm.

c. To recognize the explanations behind change in the profitability\financial position


of the firm.

d. To survey the here and now and the long haul liquidity position of the firm.

e. To look at the dissolvability of the firm.

f. To discover the capacity of the firm to meet its present commitments.

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EXTENT OF THE STUDY

Investigation of money related explanation can be embraced by various people and


for various purposes, along these lines, the extent of the AFS might differ starting
with one circumstance then onto the next.

Be that as it may, coming up next are some the procedures of the AFS:

a) Comparative money related explanations.

b) Common-measure budgetary explanations.

c) Trend rate investigation.

d) Statement of changes in money related position.

e) Cost-volume-benefit relations, and

f) Ratio investigation and others.

The last procedure i.e. The proportion investigation is the most widely recognized,
extensive and ground-breaking instrument of the AFS. The significance of
proportion examination lies in the way that it presents certainties on a near premise.
Accordingly, this examination concentrates just on this (proportion) investigation.

REQUIREMENT FOR STUDY

 Need of money related proclamation examination concentrate to analyze the


data contain in monetary articulation. In order to pass judgment on the
productivity and budgetary position of the firm HERO MOTOCORP PVT
LTD

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 Financial examiner investigations the monetary explanations with different
instruments of examination before ordering upon the money related wellbeing
of the firm.

 Essential to draw out the historical backdrop of HERO MOTOCORP PVT


LTD

 Significance and importance of the money related articulations.

TARGETS OF THE STUDY

The fundamental target of the task is to investigate the money related articulations of
the organization utilizing the monetary explanations viz, similar and proportion
examination for this reason for examination. It has been used the auxiliary
information of the organization HERO MOTOCORP PVT LTD) i.e., yearly reports
from 2012-13 to 2016-2017this will help in assessing the organization's liquidity
conditions gainfulness long haul settling and operational productivity.

Coming up next are fundamental goals of the investigation.

 To decide the monetary explanations and shortcoming of the firm.

 To decide the short – term tackling of the firm

 To analyze the data contained to monetary explanations in order to pass


judgment on the benefit and attachment to the firm..

 To build up connection between different figures or the pay proclamation and


asset report.

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RESEARCH METHODOLOGY
RESEARCH DESIGN
This is a deliberate method to take care of the exploration issue and it is vital part for
the examination without which inquires about will most likely be unable to get the
configuration. An examination configuration is the game plan of conditions for
accumulation and investigation of information in a chief that expects to join for
gathering and investigation of information significance to the exploration reason with
economy in method.

WHICH MEANS OF RESEARCH DESIGN

The imposing issue that pursues the assignment of characterizing the examination
issue is the planning of outline of the exploration venture, prominently known as the
exploration outline, choice with respect to what, where, when, how much, by what
implies concerning a request of an examination contemplate establish an exploration
outline. An exploration configuration is the course of action of conditions for
gathering and examination of information in a chief that intends to join for
accumulation and investigation of information importance to the examination reason
with economy in system.

WELLSPRINGS OF DATA

Information we gathered dependent on two sources.

 Primary information.

 Secondary information.

Essential information

The Primary information are those information's, which are gathered over again and
out of the blue, and subsequently happen to be unique in character.

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Auxiliary Data:

The Secondary information are those which have just been gathered by some other
organization and which have just been prepared. The wellsprings of Secondary
information are Annual Reports, perusing Internet, through magazines.

1. It incorporates information accumulated from the yearly reports of HERO


MOTOCORP PVT LTD

2. Articles are gathered from authority site of HERO MOTOCORP PVT LTD.

CONSTRAINTS OF FINANCIAL STATEMENTS

 It is just an investigation of between time reports.

 Financial examination depends on just money related data and non fiscal
variables are overlooked.

 Different individuals may translate a similar investigation in various ways.

 It does not think about the adjustments in costs level.

 Changes in bookkeeping method by firm may regularly make money


related investigation misdirecting.

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CHAPTER-II
REVIEW OF LITERATURE

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Financial Statement Analysis
Presentation:-

The term 'budgetary investigation otherwise called examination and translation of


monetary explanations' , alludes to the way toward deciding money related quality and
shortcomings of the firm by building up vital connection between the things of the asset
report , benefit and misfortune account and other agent information.

"Investigating budgetary explanations" by Metcalf and Titard

"Budgetary investigation is a procedure of assessing the connection between


segment parts of a money related articulation to get a superior comprehension of an
organizations position and execution" by Myers

The reason for budgetary investigation is to analyze the data contained in money
related articulations in order to Jude the productivity and monetary soundness of the firm.
Much the same as a specialist analyzes his patient by chronicle his body temperature,
circulatory strain , ect. Before making his decision in regards to the disease and before
giving his treatment, a money related expert investigation the budgetary explanations with
different instruments of examination before remarking upon the monetary wellbeing or
shortcomings of an undertaking .

The investigation and translation of money related articulations is fundamental to


draw out the puzzle behind the figures in budgetary explanations. Money related
articulations examination is an endeavor to decide the centrality and significance of the
monetary explanation information with the goal that estimate might be made of things to
come income, capacity to pay premium and obligation developments (both current and
long haul) and benefit of a sound partitioned arrangement.

Kinds of money related examination:-

Budgetary examination into various classes relying on

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(1) The material utilized and
(2) The strategy for task followed in the examination or the usual way of doing
things of investigation
Types of financial analysis

On the basis of material used on the basis of modus operandi

External Internal Horizontal Vertical

Analysis Analysis Analysis Analysis

1.On the premise of material utilized :- According to material utilized, budgetary


investigation can be of two sorts

Outer investigation
Inward investigation

Outer investigation :- This examination is finished by untouchables who don't


approach the definite inside outcasts incorporate investors, potential speculators ,
Creditors, Potential Creditors, Government Agencies , Credit Ggencies and General
Public. for money related investigation, these outside gatherings to the firm depend
predominantly on the distributed budgetary explanations.
Inward investigation:- The examination led by people who approach the interior
bookkeeping records of a business firm is known as inside investigation .

2 based on usual way of doing things: - According to the usual methodology money
related investigation can likewise be of two sorts

a. Horizontal investigation
b. Vertical investigation

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Flat examination:- Horizontal investigation alludes to the correlation of money related
information of an organization for quite a long while. The figures for this kind of
examination are displayed on a level plane over various columns.the figuresof the
different years are contrasted and standard or base year . a base year will be year
picked as begining point. This sort of examination is additionally called 'dynamic
investigation's as it depends on the information frame year to year instead of on
information of any one year . The even investigation makes it conceivable to
concentrate consideration on things that have changed altogether amid the period
under view

b. Vertical examination:- Vertical investigation alludes to the investigation of


relationship of the different things in the budgetary articulations of one bookkeeping
period . in this kinds of examination the figures from monetary articulation of a year
are contrasted and a base chose from that years explanation

The accompanying techniques for investigation are for the most part utilized:-
1. Near Statements.
2. Pattern Analysis.
3. Basic Size Statements.
4. Assets stream Analysis .
5. Money Analysis
6. Proportion Analysis
7. Cost-volume-Profit Analysis
Near proclamations:-
The near money related proclamations are explanations of the budgetary position at
various timeframes .the components of monetary position are appear in a
Relative Statement gives a thought of budgetary position at least two periods. By and
large two money related proclamations (monetary record and wage explanation) are
set up in near shape for budgetary investigation.
THE COMPARATIVE STATEMENT MAY SHOW:-
1. Outright figures (rupee sums)
2. Changes in outright figures i.e increment or decline in supreme figures.
3. Total information as far as rates.
4. Increment or lessening as far as rates.
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THE TWO COMPARATIVE STATEMENTS ARE:-
1. Relative asset report, and
2. Salary explanation.
(1) Comparative accounting report:- The near asset report investigation is the
investigation of the pattern of the equivalent items, group of things and figured things
in at least two monetary records of a similar business venture on various dates. The
change in intermittent accounting report things mirror the direct of a business the
change can be seen by correlation of the monetary record toward the start and toward
the finish of a period and these progressions can help in shaping a supposition about
the advancement of an undertaking.
RULES FOR INTERPRETATION OF COMPARATIVE BALANCE SHEET:-
While deciphering relative monetary record the mediator is relied upon to think about
the accompanying viewpoints:-
1. Current money related position and liquidity position
2. Long haul monetary position
3. Benefit of the worry.
NORMAL SIZE STATEMENT:-
The normal size articulations, monetary record and salary proclamation are appear in
logical rates. The figures are appeared as rates of aggregate resources, add up to
liabilities and aggregate deals. The aggregate resources are taken as 100 and
distinctive resources are communicated as a level of the aggregate likewise, different
liabilities are taken as a piece of aggregate liabilities.

COMMON SIZE BALANCE SHEET:-

An announcement in which accounting report things are communicated as the


proportion of every advantage for aggregate resources and the proportion of every risk
is communicated as a proportion of aggregate liabilities is called basic size parity. The
normal size accounting report can be utilized to think about organizations of varying
size. The correlation of figures in various periods isn't helpful on the grounds that
aggregate figures might be influenced by various variables. It isn't conceivable to set
up standard standards for different resources. The patterns of figures from year to year
may not be considered and even they may not give legitimate outcomes.

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PATTERN ANALYSIS OF BALANCE SHEET:-
Pattern investigation is Very imperative device of flat money related examination.
This investigation empowers to known the adjustment in the money related capacity
and working productivity in the middle of the era picked.
By studding the pattern examination of every thing we can known the course of alters
and dependent on the course of changes, the alternatives can be changed.
Pattern =Absolute Value of thing in the announcement understudy *100
Outright Value of same thing in the base articulation
PROPORTION ANALYSIS
PRESENTATION:
Proportion investigation is one of the strategies of monetary examination where
proportions are utilized as a measuring stick for assessing the money related condition
and execution of a firm. Examination and translation of different bookkeeping
proportions gives gifted and experienced investigation, a superior comprehension of
the money related condition and execution of the firm than what he could have gotten
just through a scrutiny of monetary explanations.

WHICH MEANS OF RATIOS:


Proportions are connections communicated in scientific terms between figures which
are associated with one another in some way. Clearly, no reason will be served by
contrasting two arrangements of figures which are not in the least associated with one
another. In addition, total figures are likewise unfit for correlation.
There are different procedures or models for examining data contained in the money
related proclamations viz. Near proclamations, normal size explanations, slant rates,
reserves stream examination, income investigation and proportion examination.
Money related investigation is attempted by the administration of the firm or by
gatherings outside to it viz. proprietors, lenders, financial specialists, and so forth.
Proportion investigation is most broadly utilized and great device or method of money
related examination. The term proportion alludes to the numerical quantitative
connection between two factors. It demonstrates arithmetical connection between two
figures, which can be communicated in three different ways.
• Percentage
• Fraction
• Proportion
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An investigation of the pattern of vital proportions helps the administration in
arranging, determining and choice – making. It helps in recognizing particular work
regions. To put it plainly, however the strategy of proportion examination, the
company's dissolvability, proficiency and gainfulness can be evaluated.
SIGNIFICANCE OF RATIO ANALYSIS
• Ratio investigation helps in improving the money related explanation for
simple comprehension.
• It helps in reaching out significant inference from the data gave in the
budgetary articulations which is valuable for basic leadership and encircling sound
strategies for business in future.
• It helps in evaluating the money related quality and shortcoming of the firm
and this upgrades the estimation of the monetary proclamations.
• Comparative investigation of the proportions between the contending firms
knows the effectiveness of the firm.
• It causes the speculator to survey the money related position of the worry in
which he will contribute.
• Ratio investigation helps the representatives inspired by wage increment and
incidental advantages that are connected the volume of benefits earned by the worry.
• Ratio examination gives information to between firm correlation. Proportions
feature the components related with fruitful and unsuccessful firms. They additionally
uncover solid firms and frail firms, over – esteemed and under – esteemed firms.
• Ratio examination helps in arranging and guaging. Over some undefined time
frame a firm or industry builds up specific standards that may incorporate future
achievement or disappointment. On the off chance that relationship changes in
association's information over various eras, the proportions may give intimations on
patterns and future issues.
• Ratio investigation additionally makes conceivable correlation of the
execution of the distinctive divisions of the firm. The proportions are useful in
choosing about their proficiency or generally previously and likely execution later on.
In this manner, "proportions can help administration in its fundamental capacity of
anticipating, arranging, coordination, control and correspondence".

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CONSTRAINTS OF RATIO ANALYSIS
• Ratios are of restricted utilize and in this manner single proportion may not be
valuable. Better elucidation is conceivable with the figuring of number of proportions,
which may prompt disarray to the investigator in making any significant end.
• Ratios are ascertained based on past outcomes, which may not really obvious
markers of things to come, if the business approaches are continually evolving.
• Change in bookkeeping technique might misdirect for proportion
investigation. For instance, change in stock valuation strategies from LIFO to FIFO
may likewise impact in the examination.
• Ratio examination thinks about just quantitative angles, however not
subjective components.
• Ratio examination may give deluding results If the impacts of value level
changes are not considered.
• Ratio investigation when deciphered by various individuals in various way
may experience with the individual predisposition or bias of the expert.
Proportions are delegated:
1. LIQUIDITY RATIOS
2. LEVERAGE RATIOS
3. COVERAGE RATIOS
4. ACTIVITY RATIOS (OR) TURNOVER RATIOS
5. PROFITABILTY RATIOS

1. LIQUIDITY RATIOS :
Liquidity proportions is otherwise called here and now dissolvability. These
proportions are utilized to gauge the association's capacity to meet short – term
commitments. They contrast here and now commitment with here and now (or
current) assets accessible to meet these commitments. From these proportions, much
knowledge can be gotten into the present money dissolvability of the firm and
association's capacity to stay dissolvable in case of difficulty. The loan bosses of the
firm are fundamentally keen on the short – term dissolvability of the firm. A
company's liquidity ought to be neither too high nor too low however sufficient.

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Low liquidity suggests the association's failure to meet its developing commitments.
This will result in awful FICO assessment, loss of lender's certainty or even
specialized bankruptcy, at last prompting the conclusion of the firm.
A high liquidity position is additionally terrible. It implies that the association's
present resources are too high in extent to developing commitments. Inert resources
procure nothing to the firm. The company's assets will be superfluously secured up
current resources, which if, discharged can be utilized to create benefits to the firm.
The proportions, which measure, and demonstrate the degree of a company's liquidity,
are known as liquidity proportions or here and now dissolvability proportions.
Normally utilized liquidity proportions incorporate.
• CURRENT RATIO (OR) WORKING CAPITAL RATIO
• QUICK RATIO (OR) ACID TEST RATIO
• CASH POSITION RATIO (OR) SUPER STOCK QUICK RATIO
2. LEVERAGE RATIO :
These proportions are otherwise called capital structure proportions or dissolvability
proportions or capital equipping proportions. The long haul loan bosses are more
worried about the association's long haul monetary position. They judge the money
related soundness of the firm in the firm in term of the capacity to pay premium
immediately and additionally making reimbursement of the primary. The long haul
dissolvability of the firm can be analyzed with the assistance of use proportions. They
measure the assets provided by proprietors as contrasted and the monetary gave just a
little extent of aggregate financing, the dangers of the business are borne basically by
the leasers.
Firm with low use have less danger of misfortune, however they additionally have
bring down expected returns. On the other hand, firm with high use proportions have
the danger of expansive misfortunes yet additionally have a shot of winning gigantic
benefits. In this manner, before choosing whether a firm ought to have obligation, it
must adjust higher expected returns against expanded dangers. The most normally
analyzed use: proportions are
• DEBT EQUITY RATIO
• PROPRIETORY RATIO
• DEBT TO CAPITAL RATIO
• GROSS FIXED ASSETS TO SHAREHOLDERS FUNDS
• FIXED ASSETS RATIO
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3. COVERAGE RATIOS :
These proportions demonstrate the degree to which the enthusiasm of the people
qualified for get a settled return (i.e. intrigue or profit) or a booked reimbursement
according to concurred terms are protected. The higher the cover the better it is.
Under this class the accompanying proportions are ascertained.
• FIXED INTEREST COVERAGE RATIO
• FIXED DIVIDENT COVERAGE RATIO
• DEBT SERVICE COVERAGE RATIO
4. ACTIVITY RATIO (OR) TURNOVER RATIO :
The accounts gotten by the firm from its proprietors and loan bosses will be
transformed in resources, which the firm uses to produce deals and benefits. The
measure of offers created and the benefit earned rely upon the successful and
productive administration of these advantages by the firm. Movement proportions
measure the proficiency with which the firm oversees and uses its advantages. That is
the reason action proportions are known as effectiveness proportions, on the grounds
that these proportions are changed over or turned over in to deals.
In this way the turnover or action proportions measure the connection between deals
on one side and different resources on the opposite side. Higher the turnover
proportion, the better the productivity and utilization of capital.
Numerous action proportions can be figured to gauge the proficiency of benefits
usage. Following are a portion of the essential movement proportions.
• Total Assets Turnover Ratio
• Capital Employed Turnover Ratio
• Fixed Assets Turnover Ratio
• Current Assets Turnover Ratio
• Working Capital Turnover Ratio
• Stock Turnover Ratio
• Debtors Turnover Ratio
• Creditors Turnover Ratio
5. PROFITABILITY RATIOS :
Productivity is the capacity to make benefits. Each firm ought to acquire satisfactory
benefits with the end goal to get by in the quick present and develop in future. Truth
be told, benefit is the thing that makes the business run. Gainfulness is the net
consequences of substantial number of approaches and choices. Benefit proportions
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give last answers about how productivity the firm is overseen. The gainfulness
proportions relates benefits earned by a firm by its parameters like deals, capital
utilized and total assets. In any case, while making proportion investigation
identifying with benefits, it ought to be recalled that there are diverse ideas of benefit,
for example, ideas of benefit, for example, commitment, net benefits, net benefits,
EBIT, working benefits, benefits before deterioration and before expense and so forth
productivity proportions are imperative for a worry. These proportions are figured to
illuminate the final products of business exercises, or, in other words standard of the
general productivity of a business concern. Coming up next are the vital gainfulness
proportion, which depend on.
1. Sales
2. Investment
• GROSS PROFIT RATIO
• OPERATING RATIO
• OPERATING PROFIT RATIO
• NET PROFIT RATIO
• RETRUN ON CAPITAL EMPLOYED
• RETURN ON SHAREHOLDERS EQUITY
• RETURN ON TOTAL ASSETS
• EARNING PER SHARE
• DIVIDENT PAY OUT RATIO.

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CHAPTER-III

INDUSTRY PROFILE

&

COMPANY PROFILE

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Automobile industry in India

The car business in India is the ninth biggest on the planet with a yearly creation of
more than 4.2 million units in 2011 In 2012, India rose as Asia's fourth biggest
exporter of autos, behind Japan, South Korea and Thailand.
Following financial progression in India in 1991, the Indian car industry has exhibited
managed development because of expanded intensity and loosened up limitations. A
few Indian car producers, for example, Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, extended their household and global tasks. India's vigorous monetary
development prompted the further extension of its local car advertise which pulled in
critical India-particular speculation by multinational car producers. In February 2009,
month to month offers of traveler autos in India surpassed 100,000 units. bryonic car
industry rose in India in the 1940s. Following the freedom, in 1947, the Government
of India and the private division propelled endeavors to make a car part producing
industry to supply to the vehicle business. In any case, the development was
moderately moderate in the 1960s because of nationalization and the permit raj which
hampered the Indian private area. After 1970, the car business began to develop, yet
the development was mostly determined by tractors, business vehicles and bikes.
Autos were as yet a noteworthy extravagance. Japanese producers entered the Indian
market eventually prompting the foundation of Maruti Udyog. Various remote firms
started joint endeavors with Indian organizations.
In the 1980s, various Japanese producers propelled joint-adventures for building bikes
and light business vehicles. It was right now that the Indian government picked
Suzuki for its joint-dare to fabricate little autos. Following the financial progression in
1991 and the slow debilitating of the permit raj, various Indian and multi-national
auto organizations propelled tasks. From that point forward, car part and car
fabricating development has quickened to meet local and fare requests.

HISTORY OF THE TWO WHEELERS:


The Britannica Encyclopedia a bike as a bicycle or tricycle impelled by an inward –
ignition motor (or, less frequently by an electric motor). The vehicle was the answer
to the nineteenth – century reams of self-driving the pony drawn bikeriage.
Correspondingly, the development of the cruiser made the self – driving bike. The
primary business configuration was three-wheeler worked by Edward Butler in Great

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Britain in 1884. This utilized a level single-chamber fuel motor mounted between two
cow capable front haggles by a drive affix to the back wheel. The 1900s saw the
transformation of numerous bikes or pedal cycles by including little, midway mounted
start motor motors. There was then felt the requirement for dependable developments.
This prompted street preliminary tests and rivalry between makers. Traveler Trophy
(TT) races were hung on the Isle of primary in 1907 as unwavering quality or
continuance races. Such were the demonstrating ground for some new thoughts from
mid two-stroke-cycle outlines to supercharged multivalent motors mounted on
streamlined, bikebon fiber strengthened bodywork.

DEVELOPMENT OF TWO WHEELERS:


The innovation of bikes is a much-discussed issue. "Who developed the principal
cruiser?" May appear to be a basic inquiry, "security", bike, i.e., bike with front and
back wheels of a similar size, with a pedal wrench system to drive the back wheel.
Those bikes thusly portrayed from high-wheel bikes. The high – wheelers plunged
from an early sort of pushbike, without pedals, moved by the rider's feet pushing
against the ground. These showed up around 1800, utilized iron grouped wagon
wheels, and were designated "bone-crushers", both for their jostling ride, and their
propensity to hurl their riders. Gottiieb Daimler (who credited with the building the
main bike in 1885, one wheel in the front and one in the back, in spite of the fact that
it had a littler spring-stacked outrigger wheel on each side. It was developed for the
most part of wood, the wheels were of the iron-grouped wooden-spooked wagon-sort
and it unquestionably had a "bone-crusher" case!

ADVANCE DEVELOPMENTS:
The greater part of the advancements amid the early stage focused on three and four-
wheeled outline since it was mind boggling enough to get the machines running
without agonizing over them falling over. The following remarkable bike however
was the Hildebrand and Wolf Mueller, protected in Munich in 1894. In 1895, the
French firm of DeDion-catch assembled and motor that was to make the large scale
manufacturing and regular utilization of bike conceivable. The principal cruiser with
electric begin and a completely modem electrical framework; the Hence extraordinary
from the Indian Motorcycle Company flabbergasted the business in 1931. Prior to

24
World War 1, IMC was the biggest bike maker on the planet creating more than
20000 bicycles for every year.

EXPANDING POPULARITY:
The ubiquity of the vehicle became particularly after 1910, in 1916; the Indian cruiser
organization presented the model H racer, and set it marked down. Amid World War
1, all parts of the military in Europe utilized cruisers basically to dispatch. After the
war, it delighted in a game vogue until the point that the Great Depression started in
cruisers kept going into the late twentieth century; weight the vehicle being utilized
for fast visiting and game rivalries. The more complex of a 125cc model. From that
point forward, an expanding number of ground-breaking bicycles have blasted the
streets.

AUTHENTIC INDUSTRY DEVELOPMENTS:


Indian is the second biggest maker and maker to bikes in the World. It remains next
just to Japan and China regarding the quantity of V delivered and residential deals
separately. This goal was accomplished because of assortment of reason like
prohibitive approach pursued by the administration of India towards the traveler
bicycle industry, rising interest for individual transport, wastefulness in people in
general transportation framework and so forth. The Indian bikes industry made a little
start in the mid 50s when Automobile results of India (API) began fabricating bikes in
the nation. Until 1958, API and Enfield were the sole makers.

The two – wheelers showcase was opened were opened to remote rivalry in the mid-
80s. Also, the then market pioneers Escorts and Enfield – were gotten ignorant by the
attack of the 100cc bicycles of the four Indo-Japanese joint endeavors. With the
accessibility of eco-friendliness low power bicycles, request swelled, bringing about
Hero Honda – at that point the main maker of four stroke bicycles (100cc class),
picking up a best space.

The principal Japanese bikes were presented in the mid eighties. TVS Suzuki and
Hero Honda got the initial two-stroke and four-stroke motor cruisers individually.
These two players at first began with get together of CKD Kits, and later on advanced
to indigenous assembling.
25
The business had a smooth ride in the 50s, 70s when government restricted new
sections and entirely controlled limit extension. The business saw a sudden
development in the 80s. The business saw a relentless of 14% prompting a pinnacle
volume of 1.9 mn vehicles in 1990.

In 1990 the whole car industry saw an uncommon fall sought after. This brought
about a decay of 15% out of 1991 and 8% out of 1992, bringing about a creation loss
of 0.4mn vehicles. Notwithstanding Hero Honda, all the significant makers
experienced subsidence in FY93 and FY94. Legend Honda demonstrated a peripheral
decrease in 1992.

The purpose behind subsidence in the division were the unending ascent in fuel costs,
high information costs and decreased obtaining power because of critical like
expanded generation in 1992, because of new contestants combined with retreat in the
business brought about organizations either revealing misfortunes or a fall in benefits.

END:

The bikes showcase has had a detectable move from a purchasers market to a venders
advertise with an assortment of decision, players will have contend on different fronts
viz. evaluating, innovation item outline, profitability after deal administration,
advertising and conveyance. Temporarily, pieces of the overall industry of individual
makers will be delicate to limit, item acknowledgment, valuing and aggressive
weights from different producers.

As salaries develop and individuals develop and individuals want to claim a private
methods for transport, offers of bikes will rise. Entrance is relied upon to increment to
roughly to over 25% by 2005.

The cruiser fragment will keep on driving the interest for bikes in the coming years.
Bike deal is relied upon to increment by 20% yoy when contrasted with 1%
development in the bike showcase and 3% by sulked deals individually for the
following two years.

26
The four-stroke bikes will add new measurement to the bike portion in the coming
future.

The Asian mainland is that biggest client of the bikes on the planet. This is because of
poor street framework and low per capita pay, prohibitive arrangement on bicycle
industry. This is because of oligopoly between best five players in the fragment,
contrasted with parched makers in the bicycle business.

Saint Honda engines LTd., is one of the main organizations in the bike business. At
present it is the market pioneer in the bike portion with around 47% the piece of the
pie amid FY 2000 – 01. Amid the year, organization posted a 41.15% yoy ascend in
turnover to Rs.31, 686.5mn in bikes which driven by a 35.17% yoy ascend in
Motorcycle deals volumes. The organization has developed as a standout amongst the
best players, much in front of its rivalries a record of its prevalent and dependable
item quality supplemented with amazing showcasing methods. The organization has
been reliably tending to the developing interest for bikes and has been aggregate
client base of more than 4 million clients, or, in other words achieve 5min check with
country and semi-urban portion being the new class of shoppers.

27
COMPANY PROFILE

28
CORPORATE PROFILE
Legend MotoCorp Ltd. (Earlier Hero Honda Motors Ltd.) is the world's biggest
producer of two - wheelers, situated in India.
In 2001, the organization accomplished the desired position of being the biggest bike
fabricating organization in India and furthermore, the 'World No.1' bike organization
regarding unit volume deals in a timetable year. Legend MotoCorp Ltd. keeps on
keeping up this situation till date.
Today, consistently bike sold in the nation is a Hero Honda bicycle. At regular
intervals, somebody in India purchases Hero Honda's best offering cruiser – Splendor.
Vision
The Hero Honda story started with a basic vision – the vision of a versatile and an
engaged India, controlled by Hero Honda. This vision was driven by Hero Honda's
pledge to client, quality and brilliance, and keeping in mind that doing as such,
keeping up the most astounding norms of morals and societal obligations. Legend
Honda trusts that the quickest method to transform that fantasy into a the truth is by
staying centered around that vision.
Methodology
Saint Honda's key methodology has been driven by development in each circle of
movement – building a powerful item portfolio crosswise over classifications,
investigating new markets, forcefully extending the system and proceeding to put
resources into brand building exercises.
Assembling
Legend Honda bicycles are fabricated crosswise over three comprehensively
benchmarked producing offices. Two of these are based at Gurgaon and Dharuhera
which are situated in the territory of Haryana in northern India. The third and the most
recent assembling plant is based at Haridwar, in the slope territory of Uttrakhand.
Innovation
In the 1980's Hero Honda spearheaded the presentation of eco-friendly, condition
cordial four-stroke bikes in the nation. Today, Hero Honda keeps on being innovation
pioneer. It turned into the primary organization to dispatch the Fuel Injection (FI)
innovation in Indian bikes, with the dispatch of the Glamor FI in June 2006.

29
Items
Saint Honda's item run incorporates assortment of bikes that have set the business
models over all the market portions. The organization likewise began assembling bike
in 2006. Legend Honda offers extensive no. of items and takes into account wide
assortment of prerequisites over every one of the fragments.
Circulation
The organization's development in the bike showcase in India is the consequence of a
natural capacity to build reach in new geologies and development markets. Legend
Honda's broad deals and administration organize now traverses near 4500 client
contact focuses. These contain a blend of approved dealerships, Service and Spare
Parts outlets, and merchant designated outlets the nation over.
Brand
The organization has been ceaselessly putting resources into brand building using not
just the new item dispatch and new battle dispatch openings yet additionally through
inventive showcasing activities spinning around cricket, amusement and ground-level
initiation.
Saint Honda has been effectively advancing different games, for example, hockey,
cricket and golf. Legend Honda was the title supporter of the Hero Honda FIH
Hockey World Cup that was played in Delhi amid Feb-March 2010. Saint Honda
likewise accomplices the Commonwealth Games Delhi 2010.

2010-11 Performance

Add up to unit offers of 54,02,444 bikes, development of 17.44 percent

Add up to net working pay of Rs. 19401.15 Crores, development of 22.32 percent

Net benefit after expense at Rs. 1927.90 Crores

Add up to profit of 5250% or Rs. 105 for each offer including Interin Dividend of Rs.
70 for each offer on face estimation of each offer of Rs. 2 each

EBIDTA edge for the year 13.49 percent

30
EPS of Rs. 96.54

2009-10 Performance

Add up to unit offers of 46,00,130 bikes, development of 23.6 percent

Add up to net working wage of Rs. 15860.51 Crores, development of 28.1 percent

Net benefit after duty at Rs. 2231.83 Crores, development of 74.1 percent

Last profit of 1500% or Rs. 30 for every offer on face estimation of each offer of Rs.
2

EBIDTA edge for the year 17.4 percent

EPS of Rs. 111.77, development of 74.1 percent

LEGEND HONDA'S MISSION


Legend Honda's main goal is to make progress toward cooperative energy between
innovation, frameworks and HR, to create items and administrations that meet the
quality, execution and value yearnings of its clients. In the meantime keep up the most
noteworthy measures of morals and social obligations.

This mission is the thing that drives Hero Honda higher than ever in perfection and
enables the association to fashion a one of a kind and commonly advantageous
association with all its partners.

SAINT HONDA'S MANDATE


Saint Honda is a world pioneer due to its magnificent labor, demonstrated
administration, broad merchant organize, effective store network and world-class
items with front line innovation from Honda Motor Company, Japan. The cooperation
and responsibility are showed in the most elevated amount of consumer loyalty, and
this goes far towards fortifying its administration status

31
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

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


Director

11 Mr. Analjit Singh Non-executive & Independent


Director

12 Dr. Pritam Singh Non-executive & Independent


Director

13 Ms. Shobhana Bhartia Non-executive & Independent


Director

14. Mr. M. Damodaran Non-executive & Independent


Director

15. Mr. Ravi Nath Non-executive & Independent


Director

16. Dr. Anand C. Burman Non-executive & Independent


Director

32
BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL


Mr. Brijmohan Lall Munjal is the author Director and Chairman of the Company and
the $ 3.2 billion Hero Group. He is the Past President of Confederation of Indian
Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a
Member of the Board of the Country's Central Bank (Reserve Bank of India). In
acknowledgment of his commitment to industry, Mr. Munjal was presented the
Padma Bhushan Award by the Union Government.
Mr. Brijmohan Lall Munjal is currently on the board of the following companies:
No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

2 Hero Honda Finlease Limited Chairman and Director

3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries Limited Director

6 Shivam Autotech Limited Director

KEY MILESTONES OF HERO HONDA


Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced


500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder
Managing Director, Mr. Raman Kant Munjal

33
1994 New motorcycle model - "Splendor" introduced
1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced


Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced


Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV
Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced


Environment Management System of Gurgaon Plant certified ISO-14001 by DNV
Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced


One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced


New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and
Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar year in a
row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

34
Hero Honda became the World No. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row

15 million production milestone achieved

2007 Hero Honda is the World No. 1 for the 6th year in a row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration


New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched

35
2009 Hunk' (Limited Edition) launched
Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
2010 Silver jubilee celebrations

New model Splendor Pro launched


2011
Launch of new Super Splendor and New Hunk

New licensing arrangement signed between Hero and Honda


Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma
Crosses the landmark figure of 5 million cumulative sales in a single year

PROMINENT AWARDS TO THE COMPANY


Year Awards & Recognitions

2011 Two-wheeler Manufacturer of the Year award by Bike India magazine.


Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels
Car and Bike Awards.
- CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a
new corporate entity" by CNBC Awaaz Consumer Awards
- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC
Awaaz Consumer Awards
2010 - Colloquy Loyalty Awards "Innovation in Loyalty Marketing International
2011" for Hero GoodLife
- "Best Activity Generating Short or Long-Term Brand Loyalty" by the
Promotion Marketing Award of Asia Order of Merit for Hero GoodLife
- Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity
"Most Trusted Brand" 2011 survey

Company of the Year awarded by Economic Times Awards for Corporate


Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

36
NDTV Profit Car & Bike Awards 2010 -

 Two-wheeler Manufacturer of the Year


 CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009

2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards
2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun &
Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted
"NDTV Profit Business Leadership Award 2008"
TopGear Design Awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV “Viewers’ Choice Award”
to Hunk in Bike category
IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty
Awards - “Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector
Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of
business innovation and transformation) - Best Customer Loyalty Program in
Automobile category

NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year


TNS Voice of the Customer Awards:
 No.1 executive motorcycle Splendor NXG
 No.1 standard motorcycle CD Deluxe
 No. premium motorcycle CBZ Xtreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category:
 Overall "Bike of the Year" - CBZ X-treme

37
 "Bike of the Year" - CBZ X-treme (up to 150 cc category)
 "Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.


"Bike of the Year" - CBZ X-treme by Overdrive Magazine.
Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine
“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer
Awards 2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
One of the 8 Indian companies to enter the Forbes top 200 list of world’s most
reputed companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction
Awards 2006:
 Splendor Plus (Executive)
 CD Deluxe (Entry)
 Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity
Survey 2006.
Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006.
Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz
Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during 2003-04
for two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export
Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following category:

38
 Bike Maker of the Year
 Bike of the Year - Achiever
 Bike of the Year - Achiever (up to 150 cc category)
 Bike of the Year - Glamour (up to 125 cc category)
 NDTV Viewers' Choice Award to Glamour in the bike category

CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Legend Honda Motors takes significant pride in its partner connections, particularly
ones created at the grassroots. The Company trusts it has figured out how to bring a
financially and socially in reverse locale in Dharuhera, Haryana, into the national
monetary standard.
An Integrated Rural Development Center has been set up on 40 sections of land of
land along the Delhi-Jaipur Highway. The Center-finish with wide methodology
streets, clean water, and training offices for the two grown-ups and kids presently
sustains a lively, instructed and solid network.
The Foundation has received different towns situated inside region of the Hero Honda
manufacturing plant at Dharuhera for coordinated provincial advancement. This
incorporates:
• Installation of profound bore hand pumps to give clean drinking water.
• Constructing metalled streets and interfacing these towns to the National
Highway (NH - 8).
• Renovating elementary school structures and giving clean water and latrine
offices.
• Ensuring a legitimate seepage framework at every one of these towns to avert
water-logging.
• Promoting non-regular wellsprings of vitality by giving a 50 percent
endowment on biogas plants.
The Raman Munjal Vidya Mandir started with three classes (up to class II) and 55
understudies from adjacent regions. It has now developed into a cutting edge Senior
Secondary, CBSE partnered co-instructive school with more than 1200 understudies
and 61 instructors. The school has an open play area, a ultra-present day lab, an all

39
around prepared varying media room, an action room, a very much loaded library and
a PC focus.
The Raman Munjal Sports Complex has ball courts, volleyball courts, and hockey and
football grounds are utilized by the neighborhood villagers. Sooner rather than later,
sports institutes are made arrangements for volley ball and bushel ball, in a joint effort
with National Sports Authority of India.
Professional Training Center
With the end goal to encourage neighborhood provincial individuals, particularly
ladies, Hero Honda has set up a Vocational Training Center. So far 26 groups
containing about 625 ladies have been prepared in fitting, weaving and sewing. The
Company has helped ladies prepared at this inside to set up a generation unit to fasten
garbs for Hero Honda workers. Strikingly, a large portion of the ladies are currently
independently employed.
Grown-up Literacy Mission
This Scheme was propelled on 21st September, 1999, covering the close-by towns of
Malpura, Kapriwas and Sidhrawali. The venture began with an unassuming enrolment
of 36 grown-ups. Saint Honda is currently during the time spent giving Adult Literacy
Capsules to another 100 grown-ups by getting town heads and other conspicuous
villagers to inspire ignorant grown-ups.
Relational unions of underprivileged young ladies
Relational unions are sorted out every once in a while, especially for young ladies
from in reverse classes, by the Foundation by giving monetary help and other help to
the families.
Provincial Health Care
Other than setting up a cutting edge doctor's facility, the Foundation additionally
routinely gives doorstep medicinal services administrations to the neighborhood
network. Free human services and restorative camps are presently a standard
component in the Hero Group's people group outreach program
KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE
COMPANY
At Hero Honda, our objective isn't just to offer you a bicycle, yet additionally to help
you consistently your reality a superior place to live in. Other than its will to give an
excellent support of the majority of its clients, Hero Honda stands firm as a socially
capable undertaking conscious of its condition and aware of the imperative issues.
40
Saint Honda has been firmly dedicated not exclusively to natural preservation
software engineers yet additionally communicates the undeniably indistinguishable
harmony between the financial concerns and the ecological and social issues looked
by a business. A business must not develop to the detriment of humankind and man's
future yet rather should serve humanity.
"We should help out the network from whose land we create our riches."
A well known expression from our Worthy Chairman Mr. Brijmohan Lall Munjal.
Condition Policy
We at Hero Honda are resolved to exhibit brilliance in our ecological execution on a
nonstop premise, as an inherent component of our corporate theory.
To accomplish this we subscribe to:
• Integrate natural qualities and cleaner creation in the entirety of our business
procedures and practices with particular thought to substitution of unsafe synthetic
compounds, where reasonable and fortify the greening of store network.
• Continue item advancements to enhance natural similarity.
• Comply with all material natural enactment and furthermore controlling our
ecological releases through the standards of "alara" (as low as sensibly achievable).
• Institutionalize asset preservation, specifically, in the zones of oil, water,
electrical vitality, paints and synthetic compounds.
• Enhance natural consciousness of our workers and merchants/sellers, while
advancing their inclusion in guaranteeing sound ecological administration.
Quality Policy
Greatness in quality is the center estimation of Hero Honda's reasoning.
We are submitted at all levels to accomplish high caliber in whatever we do,
especially in our items and administrations which will meet and surpass client's
developing goals through:
• Innovation in items, procedures and administrations.
• Continuous change in our aggregate quality administration frameworks.
• Teamwork and obligation.
Wellbeing Policy
Legend Honda is focused on wellbeing and strength of its workers and different
people who might be influenced by its activities. We trust that the sheltered work
hones prompt better business execution, persuaded workforce and higher profitability.

41
We will make a security culture in the association by:
• Integrating security and wellbeing matters in the entirety of our exercises.
• Ensuring consistence with all pertinent authoritative prerequisites.
• Empowering representatives to guarantee security in their individual work
places.
• Promoting security and wellbeing mindfulness among representatives,
providers and contractual workers.
• Continuous changes in security execution through safety measures other than
support and preparing of representatives.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX


MOTORS)

PHOENIX MOTORS PVT LTD is dealership sort of business. PHOENIX MOTORS

PVT LTD. is set up on 21st walk 2003. The business is running by just a single man.

The proprietor name is ch .madhu mathi the firm is situated at habsiguda in

Hyderabad.

By and large the deal will be either on money premise or on institutional premise.

Bank like ICICI, HDFC and CENTURION are giving advances to clients.

Promoting methodology of phoenix engines:

They are giving the promotions through daily papers, divider depictions, hoardings

and field staff. They are overhauling deals by presenting the plans, assemble

appointments, institutional deals and client way to-entryway exercises.

Arrangement of Staff individuals:

Staff individuals are arranged for specialists, 25 individuals are distributed for field

staff, 5 individuals are enlisted for deals for people, 5 people are set for assessing for

extra parts, 5 individuals are allocated for administrative records and another 3 people

for money exchange and different individuals are dispensed for outstanding work.

42
Client relationship:

They engage the showroom giving a client's colossal having pool diversion, web

office and TV with home there framework. They give bile upkeep programs on

consistently.

As indicated by different merchants PHOENIX engines in first in deals and best in

administration. They treat client, is the big cheese at PHOENIX engines consumer

loyalty is their adage, why since, they will fulfilled client is the best notice. They give

better an incentive to the clients and additionally workers too. At PHOENIX engines

the client is the supervisor.

DEALS STRATEGY OF PHOENIX MOTORS:

Normal they are offering 25 vehicles for every day. PHOENIX engines PVT L.T.D is

the A.P s NO.1 dealership in deals and different exercises? It is a QLAD (qualify

pioneer through quality merchant). At PHOENIX engine they gave the quality support

of the clients why on the grounds that 'the expense is for quite some time overlooked

yet the quality is associated with ever". They treat quality has a...

Q Quest for magnificence

U Understanding client's needs

An Action to accomplish client's appreciation.

L Leadership resolved to be a pioneer

I including every one of the general population

T Team soul to work for a shared objective

Y Yard sticks to quantify programs.

GUARANTEE ON PROPRIETARY ITEMS:

Guarantee on restrictive things like Tyros, Tubes and Battery and so on, will be

straightforwardly dealt with by the particular unique fabricates (OEM's) aside from

43
AMCO for batteries and Dunlop and Falcon tires and Tubes. If there should arise an

occurrence of any imperfection in exclusive things, other than the over two made

reference to OEM'S the merchants must approach the Brach office merchant of the

separate produce. For AMCO batteries and Dunlop and bird of prey tires, tubes cases

will be acknowledged at our approved dealerships per the commonly concurred terms

and conditions between HERO HONDA and of these two OEM's on the off chance

that the case isn't acknowledged for invalid reasons. At that point the case alongside

the refusal note frame the OEM can be sent to the guarantee segment at gorgon plan

after because of proposal of the territory benefit build. In the event that some other six

administrations or resulting paid administrations isn't profited according to the

suggested calendar given in the proprietor's manual. In the event that HERO HONDA

prescribed motor oil isn't utilized. To typical wear and tear segments like globules,

electric wiring, channels, start plug, grip plates, braded shoes, clasp, shim washers, oil

seals, gaskets, elastic parts (other than tire and tube) plastic segments, chain$

sprockets and if there should arise an occurrence of wheel edge misalignment or twist.

On the off chance that there is any harm due o change or fittings of adornments other

than ones prescribed by HERO HONDA. In the event that the engine has been

utilized in any aggressive occasions like following races or encourages. On the off

chance that there is any harm to the painted surface because of mechanical

contamination or different unessential variables. For mollusks made for any

noteworthy harm because of any past breakdown. For ordinary wonder like

commotion, vibration, oil leakage, which don't influence the execution of the bikes.

SOCIAL SERVICE ACTIVITIES

PHOENIX engines take an interest and direct social administration exercises. As of

late the phoenix engines sorted out a BLOOD DONATION CAMP for the trust on

44
21st January 2006.they roused on the shoppers to partook in this camp and

furthermore give endorsement to the clients

THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

45
46
47
CUSTOMER RELATIONSHIP:

To engage the clients the showroom giving a clients gigantic having pool amusement,
Internet office and TV with home theater framework. They give bicycle support
programs on consistently. As indicated by different merchants PHOENIX engines in
first in deals and best in administration. They treat client, is the big cheese at
PHOENIX engines consumer loyalty is their witticism, why in light of the fact that,
the very much fulfilled client is the best ad. They give better an incentive to the
clients and in addition workers moreover. At PHONIX engines the client is the
supervisor.

SOCIAL SERVICE ACTIVITIES

PHOENIX Motors takes part in social administration exercises. The Phoenix engines
sort out a BLOOD DONATION CAMP for the trust in consistently. They spurred on
the clients to partook in this camp and furthermore give Certificate to the clients.

48
CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION

49
IMPORTANCE OR SIGNIFICANCE OF RATIO ANALYSIS:
The proportion investigation is a standout amongst the most intense devices of money
related examination. It is utilized as a gadget to examine and translates the monetary
soundness of big business. Much the same as a specialist analyzes his patient by
chronicle his body temperature, pulse and so forth before making his decision in
regards to the ailment and before giving his treatment, a money related investigator
examinations the monetary proclamations with different instruments of examination
before remarking upon the budgetary wellbeing or shortcomings of a venture.
Following are the employments of proportion examination:
• Liquidity position
• Long term dissolvability
• Operating productivity
• Overall productivity
• Inter firm correlation
• Trend examination.
Liquidity Position
With the assistance of proportion examination ends can be drawn in regards to the
liquidity position of a firm. It would be HERO MOTOCORP PVT LTD Moto Corp
Bike on the off chance that it can meet its present commitments when they wind up
due. A firm can be said to be able to meet its fleeting liabilities on the off chance that
it has adequate fluid assets to pay the enthusiasm on its short developing obligation
for the most part inside a year and also to reimburse the main. This capacity is
reflected in the liquidity proportions of a firm. The liquidity proportions are especially
valuable in credit examination by banks and different providers of here and now
advances.
Long haul dissolvability:
Proportion investigation is similarly helpful for surveying the long haul money related
practicality of a firm. This part of the monetary position of a borrower is of worry to
the long haul banks, security experts and the present and potential proprietors of a
business. The long haul dissolvability is estimated by the use/capital structure and
gainfulness

50
proportions which center around acquiring power and working effectiveness.
Proportion examination uncovers the qualities and shortcoming of a firm in this
regard.
Working productivity
Amazingly, one more measurement of the convenience of the proportion examination,
pertinent from the perspective of administration, is that it tosses light on the level of
proficiency in the administration and usage of its benefits. The different HERO
MOTOCORP PVT LTD Moto Corp Bikes proportions measure this sort of
operational proficiency. In HERO MOTOCORP PVT LTD Moto Corp Bike, the
dissolvability of a firm is, in a definitive examination, subordinate upon the business
incomes created by the utilization of its advantages add up to and its parts.
Generally speaking gainfulness:
Not at all like the outside gatherings which are occupied with one part of the money
related position of a firm, the administration is continually worried about the general
gainfulness of the venture. That is, they are worried about the capacity of the firm to
meet its here and now and additionally long haul commitments to its loan bosses, to
guarantee a sensible come back to its proprietors and secure ideal use of the
advantages of the firm. This is conceivable if an incorporated view is taken and every
one of the proportions are viewed as together.
Between firm correlation
Proportion examination not just tosses light on the budgetary position of a firm yet in
addition fills in as a venturing stone to medicinal measures. This is made conceivable
due to between firm examination and correlation with industry midpoints. A solitary
figure of a specific proportion is good for nothing except if it is identified with some
standard or standard. One of the prevalent procedures is to contrast the proportions of
a firm and the business normal. It ought to be sensibly expected that the execution of
a firm ought to be in expansive similarity with that of the business to which it has a
place. A between firm correlation would show the company's position opposite its
rivals.
Pattern Analysis
At long last, proportion investigation empowers a firm to take the time measurement
into HERO MOTOCORP PVT LTD Moto Corp Bikes check. At the end of the day,
regardless of whether the money related position of a firm is enhancing or

51
falling apart throughout the years. This is made conceivable by the utilization of
pattern examination. The noteworthiness of a pattern investigation of proportions lies
in the HERO MOTOCORP PVT LTD Moto Corp Bikes that the examiners can know
the bearing of development, that is, regardless of whether the development is positive
or negative. For instance, the proportion might be low when contrasted with the
standard yet the pattern might be upward. Then again, however the present level
might be HERO MOTOCORP PVT LTD Moto Corp Bikes yet the pattern might be a
declining one.
CHARACTERIZATION OF RATIOS:

1) LIQUIDITY RATIO
• Current Ratio
• Quick HERO MOTOCORP PVT LTD Moto Corp Bikes Ratio

2) CAPITAL STRUCTURE RATIO


• Debt-value Ratio
• Proprietary Ratio.
• Interest Coverage Ratio

3) HERO MOTOCORP PVT LTD Moto Corp RATIO:


• Inventory Turnover Ratio
• Debtors Turnover Ratio
• Creditors Turnover Ratio
• Capital Turnover Ratio
• Working Capital Turnover Ratio
• Fixed Assets Turnover
4) PROFITABILITY RATIO:

• Gross Profit Ratio


• Net Profit Ratio
• Operating Profit Ratio
• Operating Expenses Ratio Or Operating Ratio
• Return on Investment Ratio

52
Liquidity Ratios:
These proportions are likewise named as 'working capital' or 'here and now
dissolvability proportion'. The significance of satisfactory liquidity in the feeling of
the capacity of a firm to meet current/here and now commitments when they end up
due for installment can barely be overemphasized. In HERO MOTOCORP PVT LTD
Moto Corp Bikes, liquidity is an essential for the simple survival of a firm. The
transient loan bosses of the firm are keen on the fleeting dissolvability or liquidity of a
firm. In any case, liquidity infers, from the perspective of usage of the assets of the
firm that assets are inert or they acquire practically nothing

Use/capital structure proportions:


The second class of money related proportions is use or capital structure proportions.
These proportions clarify how the capital structure of a firm is made up or the
obligation value blend received by the firm. The long haul dissolvability proportion of
a firm can be inspected by utilizing influence or capital structure proportions. The use
or capital structure proportions might be characterized as money related proportions
which toss light on the long haul dissolvability of a firm as reflected in its capacity to
guarantee the long haul loan bosses as to: (1) Periodic installment of premium amid
the time of the advance and (2) Repayment of primary on development or in pre
decided portions at due dates.

LEGEND MOTOCORP PVT LTD MOTO CORP BIKES RATIOS:


Legend MOTOCORP PVT LTD Moto Corp Bikes proportions are worried about
estimating the effectiveness in resource administration. These proportions are likewise
called productivity proportions or resources usage proportions. The effectiveness with
which the advantages are utilized would be reflected in the speed and rate with which
resources are changed over into deals. The more prominent is the rate of turnover or
change, the more proficient is the usage/administration, different things being
equivalent. Consequently, such proportions are likewise assigned as turnover
proportions.

Benefit Ratios:
Benefit is sign of the productivity with which the tasks of the business are gone ahead.
Poor operational execution may demonstrate poor deals and henceforth poor benefits.
53
A lower benefit may emerge because of the HERO MOTOCORP PVT LTD Moto
Corp Bikes of command over the costs. Brokers, money related establishments and
different banks take a gander at the productivity proportions as a pointer regardless of
whether the firm acquires significantly more than it pays enthusiasm for the utilization
of obtained assets and whether extreme reimbursement of their obligation shows up
sensibly certain. The Management of the firm is normally anxious to gauge its
working effectiveness of a firm and its capacity to guarantee satisfactory come back
to its investors depends at last on the benefits earned by it. The benefit of a firm can
be estimated by its gainfulness proportions.

At the end of the day, the benefit proportions are intended to give answers to
questions, for example, (1) Is the benefit earned by the firm satisfactory? (2) What
rate of return does it speak to? (3) What is the rate of benefit for different divisions
and fragments of the firm? (4) What is the rate of come back to value holder.

1) CURRENT RATIO:

This proportion is a marker of solid's responsibility to meet its fleeting liabilities.


Higher proportion, better the inclusion. 2:1 proportion is treated as standard
proportion. This proportion is additionally called as dissolvability/working capital
proportion.

The present proportion is the proportion of the present resources and current
liabilities. It is ascertained by isolating current resources by current liabilities.

Recipe:
Current Ratio= Current resources
Current liabilities

54
Table-1
(Amount in Lakhs)

Year 2013-14 2014-15 2015-16 2016-17


Current Assets 14,11,798 17,37,753 24,09,647 31,59,775
Current 12,86,103 15,76,507 18,05,200 22,14,785
Liabilities
Current Ratio 1.09 1.10 1.33 1.43

SOURCE: ANNUAL REPORTS OF COMPANY

2013-14 2014-15 2015-16 2016-17

Interpretation: -The present proportion of most recent four years is not as much as
perfect proportion 2:1, i.e. fluctuating. This demonstrates strong's duty to meet its
short liabilities was not very great. In 2015-16 and 2016-2017the current proportions
are great contrast with 2010-11, 2013-14.
2) QUICK/HERO MOTOCORP PVT LTD Moto Corp ID TEST/LIQUID
RATIO:
Fluid proportion is sign of accessibility of speedy advantages for respect its quick
cases. Higher the proportion betters the inclusion. What's more, the standard
proportion is 1:1.An resource is fluid if is can be changed over into money instantly
without loss of significant worth. Henceforth money is most fluid a great many
assetses which are viewed as generally fluid are; Debtor's parity, attractive securities
and so forth inventories viewed as less fluid in this manner they require some time
frame savoring into money and their esteem additionally has propensity to vacillate.

55
Formula:
Quick ratio = Current Assets- Inventories / Current
Liabilities
Table-2 (Amount in Lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Quick Assets 12,84,269 15,19,792 21,79,920 27,03,911

Current 12,86,103 15,76,507 18,05,200 22,14,785


Liabilities
Quick Ratio .99 .96 1.20 1.22

SOURCE: ANNUAL REPORTS OF COMPANY

2013-14 2014-15 2015-16 2016-17

Interpretation: The perfect proportion is 1:1. The fast proportion is likewise


fluctuating. In 2015-16 the proportion is HERO MOTOCORP PVT LTD Moto Corp
Bike story since it is higher than 1. Furthermore, it is additionally great in 2016-
2017and 2015-16.Because it is in excess of 1.But it has diminished in 2013-14 and
2010-11 i.e. 0.96 and 0.99 separately. By and large the speedy proportion is HERO
MOTOCORP PVT LTD Moto Corp Bikes, implies liquidity position of the
organization is great.
MONEY RATIO:
An advantage which changes over all of a sudden without far fetched is called as
money proportions. Here money balance included exchange speculation or attractive
securities that are comparable to money.

56
Formula:
Cash Ratio=Cash +Marketable Securities /Current Liabilities.

Table- 3: ( Amount in
lakhs)
Year 2013-14 2014-15 2015-16 2016-17

Cash+ 2,17,773 1,39,434 4,13,668 5,24,749


marketable
securities

Current 12,86,103 17,37,753 18,05,200 22,14,785


Liabilities

Cash Ratio .17 .08 .22 .23

SOURCE: ANNUAL REPORTS OF COMPANY

2013-14 2014-15 2015-16 2016-17

Interpretation: In Cash proportion there is no standard proportions for kept up the


money balance since now a days nothing to be stressed over the HERO MOTOCORP
PVT LTD Moto Corp Bikes of money if the organization has save acquiring influence
for its day to days HERO MOTOCORP PVT LTD Moto Corp Bikes. Holding of Cash
in the year 2015-16 was 23% of current liabilities in the 2013-14 it came down to 8%,
in the 2016-2017it again expanded to 23%.

57
Interim MEASURES RATIO: The proportion which evaluates a company's capacity
to meet its general money costs is the interim measures. An interim measure identifies
with fluid resource and normal every day working money streams.
Equation:
Interim Measure proportion = current resources inventories/normal day by day
working costs/360

Table-4
(Amount in lakhs)
Year 2013-14 2014-15 2015-16 2016-17

Current 12,84,269 15,19,792 21,79,920 27,03,911


asset –
inventories
Average 585 644 762 919
daily
operating
exp
Interval 2,195 2,360 2,860 2,942
Measures
SOURCE: ANNUAL REPORTS OF COMPANY

2013-14 2014-15 2015-16 2016-17

58
Interpretation: Interval measure is said to be great if No of days are adequate fluid
resource for fund its tasks. This outline Indicates that KEC have adequate Liquid
resources for fund its activities for 2942 days despite the fact that it doesn't get any
money for 2942 days.
USE RATIO
Use RATIO is likewise called as capital structure proportion. It identifies with the
investigation of different kinds of capital structure of firm. The long haul
dissolvability of an organization can be analyzed by utilizing influences or capital
structure proportions. These proportions are for long haul loan bosses to pass
judgment on the long haul money related quality of the organization.

THE DIFFERENT LEVERAGE RATIOS ARE:


1. Debt Equity Ratio
2. Proprietary Ratio
3. Interest Coverage Ratio
4. 1) DEBT RATIO

Obligation proportions are use to dissect the long haul dissolvability of firm. It is the
extent of the enthusiasm bearing obligation in the capital structure. Obligation
proportion is Calculated by aggregate obligation by aggregate obligation by capital
utilized or net resource of the firm.
Equation:
Add up to obligation/Total obligation +Net worth

Table-5 (Amount in
lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Long term debt 2,03,121 1,93,574 3,16,343 4,41,152
Shareholders 13,11,350 13,01,803 11,08,229 12,52,506
Funds
Debt-equity .15 .14 .28 .35
ratio
SOURCE: ANNUAL REPORTS OF COMPANY

59
2013-14 2014-15 2015-16 2016-17

Interpretation: The obligation proportion for the 2015-16 was .35 or 35% of
the capital utilized. It shows proprietors have give the rest of the fund that is 1-
35=65% of capital utilized. From above investigation the firm has bring down hazard
in the year 2010-11 and 2013-14.But a short time later it has expanded its hazard in
the year 2016-2017&2015-16.
2) DEBT-EQUITY RATIO
It quantifies the connection among obligation and value in the capital structure
of the firm. As it were, this proportion demonstrates the connection between the
acquired capital and proprietor's capital.
Equation:
Obligation value ratio= Long term obligation/Net worth

Table-6 (Amount in
lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Long term 2,03,121 1,93,574 3,16,343 4,41,152
debt
Net 11,08,229 11,08,229 11,08,229 12,52,506
worth
Debt-Equity .18 .17 .28 .35
Ratio
SOURCE: ANNUAL REPORTS OF COMPANY

60
2013-14 2014-15 2015-16 2016-17

Interpretation: The proportion is high in 2015-16. It demonstrates that an extensive


offer of financing by the banks of the firm and it is more hazardous to the loan bosses.
In 2010-11 and 2013-14 it has declined to .18 and 0.17 separately. In 2013-14 and
2016-2017the proportion is low i.e., 0.18 and 0.17. It shows that the firm back
perspective, the organization has generally safe. It implies that the organization is in
more secure side of back and an edge of wellbeing to the loan bosses.

3) PROPRIETORY RATIO: It builds up connection between the propitiator or


investors reserves and aggregate substantial resources. The proportion shows
properties stake in complete resources. Higher the proportion brings down the hazard
and lower the proportion higher the hazard. Obligation – value proportion and current
proportion influences the restrictive proportion.
Recipe:
Restrictive Ratio=Shareholder's Funds
Add up to Assets
Table-7 (Amount in lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Shareholder’s 4,32,688 4,32,688 4,32,688 4,52,688
Fund
Total Assets 15,39,264 18,56,702 25,25,498 32,92,946
Proprietary .28 .23 .17 .13
Ratio(%)

61
SOURCE: ANNUAL REPORTS OF COMPANY

2013-14 2014-15 2015-16 2016-17

Interpretation: The value proportion is high in 2010-11 i.e. 28%. It demonstrates


that a high exclusive proportion moderately little risk to the leasers and it is better for
long haul dissolvability position of the organization. In any case, it has been
diminished to 13% and 17% in the year 2016-2017and 2015-16 individually. A
proportion beneath half is hazardous to the banks at the season of ending up of an
organization.
4) EQUITY RATIO:
Value Ratio is ascertained by partitioning capital utilized (CE) by Net worth (NW)
Equation:
Value Ratio= Capital utilized (CE)/Net worth

Table-8 (Amount in lakhs)


Year 2013-14 2014-15 2015-16 2016-17
Capital 4,32,688 4,32,688 4,32,688 4,52,688
employed
Net worth 11,08,229 11,08,299 11,68,229 12,52,506
Equity Ratio .39 .39 .37 .36
SOURCE: ANNUAL REPORTS OF COMPANY

62
2013-14 2014-15 2015-16 2016-17

Interpretation: There are no standard principles for keeping up value proportion. It


varies HERO MOTOCORP PVT LTD Moto Corp Bikes to the idea of the business.
The lower execution in keep up Net worth in 2010-11 and 2013-14 yet in 2016-
2017&2015-16 great execution keeping up of capital utilized to total assets.
TURNOVER/HERO MOTOCORP PVT LTD MOTO CORP RATIOS OF THE
COMPANY
Presentation:
Saint MOTOCORP PVT LTD Moto Corp Bikes proportions are utilized to assess the
proficiently with which the firm oversees and uses its advantages. These proportions
are additionally called as turnover proportion. Along these lines they show the speed
with which resources are being changed over/turned over in to deals.
Consequently a HERO MOTOCORP PVT LTD Moto Corp Bikes proportion includes
connection among deals and resources. A legitimate harmony among deals and
resources by and large mirrors that benefits are overseen well.
As it were, turnover proportion demonstrates the effectiveness with which the capital
utilized is pivoted in the business.
Higher the proportion of pivot, the more prominent will be the benefit
DISTINCTIVE TURNOVER RATIOS:
1) Inventory stock turnover Ratio
2) Debtors (HERO MOTOCORP PVT LTD Moto Corp Bikes checks
Receivable) Turnover Ratios.

63
3) Creditors (HERO MOTOCORP PVT LTD Moto Corp Bikes check Payable)
Turnover Ratios
4) Fixed Assets turnover Ratio
5) Current Assets turnover Ratio
6) Working capital turnover Ratio
7) Total Assets turnover Ratio
8) Net Assets turnover Ratio
1) INVENTORY/STOCK TURNOVER RATIO (ITR/STR).
It demonstrates the effectiveness of firm in delivering and offering its items. High
Ratio is great from the view purpose of liquidity and the other way around. A low
proportion would mean that stock does not offer quick and steadily in the stockroom
for a long-lasting.
Formula:
Cost of Goods Sold OR Sales
________________ __________
Avg. Inventory Inventory
Table-9 (Amount in lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Sales 31,20,434 41,40,246 59,13,957 72,77,768
Inventory 1,27,529 2,17,961 2,29,727 4,55,864
Inventory 24.4 18.9 25.74 15.96
turnover ratio

SOURCE: ANNUAL REPORTS OF COMPANY

64
2013-14 2014-15 2015-16 2016-17

Interpretation: In the above diagram, the stock turnover proportion is high in 2014-
15, 2010-11, i.e. 25.7, 24.4 individually. However, it is low in 2015-16 and 2013-14
i.e. 15.9 and 18.9 individually. For the most part, a high stock turnover demonstrates
effective administration of stock since all the more as often as possible the stocks are
sold.
DAYS OF INVENTORY HOLDING:
Formula: Inventory*360/Sales
Table -10 (Amount in lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Inventory 1,27,529 2,17,961 2,29,727 4,55,864
Sales 31,20,434 41,40,246 59,13,957 72,77,768
Days of 14.7 18.95 13.98 22.5
inventory
holding

SOURCE: ANNUAL REPORTS OF COMPANY

65
2013-14 2014-15 2015-16 2016-17

Interpretation:- In the year 2010-11, 2006-067 because of increment in offer of


stock, the stock holding time frame is less i.e. the stock has been arranged off or sold
on a normal in 14.7, 13.9 and in 2015-16 the days have expanded .

2) DEBTORS TURNOVER RATIO:

Borrowers comprise an essential constituent of current resources and along these lines
the nature of indebted individuals to extraordinary degree establishes that
association's liquidity. There are two proportions. They are:

1) Debtors turnover Ratio

2) Debtors accumulation period Ratio


Debtors’ turnover ratio:
Formula:
Debtors turnover ratio = Creditor Sales

Debtors
Higher the ratio is better, since it indicate that debts are being collected more
promptly.

66
Table-11 (Amount in lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Sales 31,20,434 41,40,246 59,13,957 72,77,768
Debtors 8,25,008 11,26,390 13,78,923 15,98,625
Debtors 3.78 3.67 4.2 4.5
turnover
SOURCE: ANNUAL REPORTS OF COMPANY

2013-14 2014-15 2015-16 2016-17

Interpretation: - The proportions are expanding step by step. In 2014-15, it is


4.25and it has been expanded to 4.5 of every 2015-16. The proportion isn't so high. It
demonstrates that the installments of indebted individuals are not all that provoke. It is
less standard proportion i.e. 8 times.
Indebted individuals Collection Period:
Equation:
Indebted individuals accumulation period ratio= Debtor*360/deals

67
Table-12 (Amou nt in
lakhs)
Year 2013-14 2014-15 2015-16 2016-17
Debtor 8,25,008 11,26,390 13,78,923 15,98,625
Sales 31,20,434 41,40,246 59,13,957 72,77,768
Debtors 95 98 84 79
Collection
Period

SOURCE: ANNUAL REPORTS OF COMPANY

2011-12 2012-13 2013-14 2014-15

Interpretation: - The gathering time of KEC isn't great

RESOURCES TURN OVER RATIO:

Resource turn over proportion demonstrates Sales for each one rupee which is put
resources into settled and current resource together. Resources are utilized to create
deals. A firm ought to deal with its productively to manly deals.

Recipe:

Resource turnover ratio= Sales/Net Asset

68
Table-13 (Amount in
lakhs)

Year 2013-14 2014-15 2015-16 2016-17


Sales 31,20,434 41,40,246 59,13,957 72,77,768
Net Asset 15,39,264 18,56,702 25,25,498 32,92,946
Asset turn 2.0 2.2 2.3 2.2
over ratio

SOURCE: ANNUAL REPORTS OF COMPANY

2011-12 2012-13 2013-14 2014-15

Interpretation: The aggregate resource turn over proportion is 2.3 times in the year
2016-2017it is great. The equivalent is kept up in year 2013-14, 2015-16. In the 2010-
11 the proportion is low. It demonstrates poor perform.

69
CHAPTER-V
 FINDINGS
 SUGGESTIONS
 CONCLUSION
 BIBLIOGRAPHY

70
FINDINGS
1. Net working capital and negative for all the three years. So organization ought
to completely investigate increment the present resources and declines the present
liabilities.
2. Gross profile, 86.26% out of 2008-09, 88.79% out of 2009-10, and 98.79% of
every 2010-11 and 68.91% out of 2016-2017so gross benefit is always over years.
3. The current liabilities more than current resources the working capital is
negative
4. A positive working capital implies that the organization can satisfy their
fleeting liabilities.
5. A negative working capital implies that the organization right now can't meet
their transient liabilities with their present resources (money record of sale, stock).
6. The organization has turned up with a base benefit in the agreement years
2009-2013 and inside the staying budgetary years and Over all money related Position
is tasteful.
7. The relative accounting report of the co-uncovers that amid the year 2008,
settled resources expanded by RS. 3248.51 Crs. While long haul risk from exterior
(advances) has expanded by 3681.51 Crs and there is neither increment nor diminish
in offer capital. The example of speculation towards Fixed Assets uncovers that long
haul wellsprings of assets are used for settled resources.
8. The level of current resources for aggregate resources was Increased in 2012.
The level of current liabilities to add up to liabilities has additionally diminished in
2009.Thus the extent of current resources has diminished by 03.67 % ,where as
reduction in the present liabilities is 08.54 %in the years the organization liquidity
position is attractive

71
SUGGESTIONS

1. Company may investigate expanding different types of flows resources and


diminishing current liabilities to powerful oversee working capital necessity.

2. Company may keep up gross benefit in and around 98% as observed in 2009-
10 in the coming budgetary years.

3. The organization needs to post new joint endeavors and assignments.

4. To meet the transient necessities the organization needs to raise here and now
and long haul credits.

5. To pull in to the new clients the organization needs to adjust new techniques
and new innovation.

72
CONCLUSION
Despite the fact that organization is using its own assets there is exceptionally require
that organization ought to enhance its liquidity position, indebted individuals
gathering period. Usage of appropriate administration of its present resources and
current liabilities.

The outer obligation of the organization diminished slowly. This is principally


because of reimbursement of a part of term credits. The another purpose behind
reduction in outer obligation is because of increment available for later and overflow.

It was 425.67 Crs this shows there is conceivable development of the organization in
the market. Amid 2016-2017 HERO MOTOCORP PVT LTD. has under taken
research program, modernization and innovation up degree, for the above said
extension programs it has made utilization of surplus supports just and did not go for
outcast's obligations, or, in other words the great long haul money related approach of
HERO MOTOCORP PVT LTD.

73
BIBLIOGRAPHY

1. Khan, M Y and P K Jain, Financial Management, Tata McGraw-


Hill Publishing Co., New Delhi, 2007.
2. I M Pandey, Essentials of Financial Management, Vikas Publishing
House Pvt Ltd, New Delhi, 1995.
3. Ramesh, S and A Gupta, Venture Capital and the Indian Financial
Sector, Oxford university press, New Delhi, 1995.

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