RESEARCH PROJECT

on
A Study of Management Aspects with reference
to Hero Motocorp Ltd.
Submitted to

ASIAN BUSINESS SCHOOL, NOIDA

in partial fulfilment for the award of full time

Post Graduate Diploma in Management (PGDM)

Approved by AICTE, Ministry of HRD, Govt. of India

Session 2018-20

SUBMITTED TO: SUBMITTED BY:

Bushra Shivam Sharma ABS/PGDM/18/137

Assistant Professor Section - A
Asian Business School

ASIAN BUSINESS SCHOOL

PLOT A-2, SECTOR 125, NOIDA - 201303

1
 CERTIFICATE

This is to certify that the project report titled A Study of Management Aspects with reference to Hero

Motocorp Ltd. is submitted to Asian Business School, in partial fulfillment of the requirements for the

award of the Post Graduate Diploma in Management, and is an original work by SHIVAM SHARMA

(ABS/PGDM/JULY18/137). The project has been done under my supervision & guidance and the

project has not formed the basis for the award of any degree / diploma or other similar title to any

candidate.

SIGNATURE SIGNATURE
Internal Examiner External Examiner

2
 DECLARATION

I hereby declare that the project report titled A Study of Management Aspects with reference to Hero

Motocorp Ltd. is original piece of research work carried out by me under the guidance and supervision

of Mrs. Bushra. The information has been collected from genuine & authentic sources. The work has been

submitted in partial fulfillment of Post Graduate Diploma in Management of Asian Business School.

SHIVAM SHARMA

Date:

Place: Asian Business School, Noida

3
 ACKNOWLEDGEMENT

First of all, I wish to express my gratitude to the almighty for giving me the strength to present the

Research Project Report on A Study of Management Aspects with reference to Hero Motocorp Ltd.

and complete the report within the stipulated time. Many lives & destinies are destroyed due to the lack of

proper guidance, directions & opportunities. It is in this respect I feel that I am in much better condition

today due to continuous process of motivation & focus provided by my parents & teachers in general. The

process of completion of this project was a tedious job & requires care & support at all stages. I would

like to highlight the role played by individuals towards this.

I am deeply indebted to my Faculty Advisor Mrs. Bushra, Assistant Professor, Asian Business School for

her whole-hearted supervision, valuable guidance and encouragement at every step of preparing this

report.

I would also like to thank my lecturers, faculty members and all those persons who have directly or

indirectly helped me in providing the books and amenities which have helped in development of this

report, without such help this report would not have been possible. I am thankful to my parents, friends

and all well-wishers for blessing me for my success.

SHIVAM SHARMA
Batch: 2018-2020

4
 EXECUTIVE SUMMARY

Hero Motocorp Ltd. formerly Hero Honda is an Indian motor cycle and scooter manufacturer

based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero

Cycles of India and Honda of Japan.

The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most

Respected companies list has Hero Honda Motors Ranked at 108. In 2010, When Honda

decided to move out of the joint venture, Hero Group bought the shares held by Honda.

Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new

corporate identity. On 4th June 2012,Hero Moto corp approved a proposal to merge the

investment arm of its parent-Hero Investment Pvt.Ltd. into the automaker. The decision

comes after 18 months of its split from HondaMotor.

Termination of Honda joint venture (Main article): Hero Honda split In December 2010,

the Board of Directors of the Hero Honda Group have decided to terminate the joint venture

between Hero Group of India and Honda of Japan in a phased manner. The Hero Group

would buy out the 26% stake of the Honda in JV Hero Honda.Under the joint venture

Hero Group could not export to international markets (except SriLanka) and the termination

would mean that Hero Group can now export. Since the beginning, the Hero Group relied on

their Japanese partner Honda for the technology in their bikes. So there are concerns that the

Hero Group might not be able to sustain the performance of the Joint Venture alone.

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During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over

last year. In the same year, the company had a market share of 57% in the Indian

market.Hero Honda sells more two wheelers than the second, third and fourth placed two-

wheeler companies put together. Hero Honda's bike hero splendor pro sells more than one

million units per year. On 1st June 2012, Hero MotoCorp reported its highest ever monthly

sales at5, 56,644 units in May, registering a growth of 11.28%.

So, here with the reference of above I have tried calculating return based on investments and

on equity share. And also the ability of the company to pay back its interest expenses that

will help to know about the financial health of the company.

Apart from this I have analysed the PESTLE and SWOT analysis of the company which also

helps to know about the overview of Company’s performance overall.

Company is also associated in various CSR activities and Initiatives which are also being

taken in consideration in the project to know about the Social Activities participation of the

company globally.

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 INDEX
S.No. Topic Page
No
1. Certificate (s) 2
2. Declaration 3
3. Acknowledgement 4
4. Executive Summary 5
5. List of Tables 7
6. Chapter-1: Introduction 8
7. Chapter-2: Literature Review 12
8. Chapter-3: Research Methodology 17
9. Chapter-4: Data Analysis and Interpretation 24
10. Chapter-5: Findings, Conclusion and 59
Recommendations
12. Bibliography 62
13. Appendices / Annexures 63

LIST OF TABLES

S.No. Topic Page

No.
1. Key Ratio Analysis 27
2. Analysis of Share Price 28
3. Competitors of Hero MotoCorp. 38
4. P&L Statement 63
5. Income Statement 66
6. Balance Sheet 67
7. Cash Flow 68
8. Per Share Data Valuation 69

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 CHAPTER-1

INTRODUCTION

Overview of Topic :

MANAGEMENT:

The executives the organization of an association, regardless of whether it is a business, a not-

revenue driven association, or government body. The executives incorporates the exercises of
setting the methodology of an association and organizing the endeavors of its workers (or of
volunteers) to achieve its targets through the utilization of accessible assets, for example,
budgetary, normal, mechanical, and HR. The expression "the board" may likewise allude to those
individuals who deal with an association.

, Two-Wheeler Industry :

India is the second biggest maker and maker of bikes on the planet. It remains next just to Japan
and China as far as the quantity of bikes created and local deals individually. This differentiation
was accomplished because of assortment of reasons like prohibitive arrangement pursued by the
Government of India towards the traveler vehicle industry, rising interest for individual
transportinefficiency in the open transportation framework and so on.

The Indian bike industry made a little start in the mid 50s when Automobile Products of India
(API) began fabricating bikes in the nation. Until 1958, API and Enfield were the sole makers.

In 1948, Bajaj Auto started exchanging imported Vespa bikes and three-wheelers. At last, in
1960, it set up a shop to make them in specialized joint effort with Piaggio of Italy. The
understanding terminated in 1971.

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In the underlying stages, the bike fragment was commanded by API, it was later surpassed by
Bajaj Auto. Albeit different government and private undertakings entered the fight for bikes, the
main new player that has kept going till today is LML.

Under the managed system, remote organizations were not permitted to work in India. It was a
finished vender showcase with the sitting tight period for getting a bike from Bajaj Auto being as
high as 12 years.

The cruisers portion was the same, with just three makers viz Enfield, Ideal Jawa and Escorts.
While Enfield projectile was a four-stroke bicycle, Jawa and the Rajdoot were two-stroke
bicycles. The bike section was at first ruled by Enfield 350cc bicycles and Escorts 175cc bicycle.

The bike market was opened to outside challenge in the mid-80s. What's more, the then market
pioneers - Escorts and Enfield - were gotten ignorant by the surge of the 100cc bicycles of the
four Indo-Japanese joint endeavors. With the accessibility of eco-friendly low power bicycles,
request expand, bringing about Hero Honda - at that point the main maker of four stroke bicycles
(100cc classification), increasing a top opening.

The main Japanese bikes were presented in the mid eighties. TVS Suzuki and Hero Honda
acquired the initial two-stroke and four-stroke motor bikes individually. These two players at
first began with gathering of CKD units, and later on advanced to indigenous assembling. During
the 90s the significant development for cruiser section was acquired by Japanese bikes, which
developed at a pace of almost 25% CAGR over the most recent five years.

The business had a smooth ride during the 50s, 60s and 70s when the Government precluded
new sections and carefully controlled limit extension. The business saw an abrupt development
during the 80s. The business saw an unfaltering development of 14% prompting a pinnacle
volume of 1.9mn vehicles in 1990.

The passage of Kinetic Honda in mid-eighties with a variometric bike helped in giving usability
to the bike proprietors. This aided in instigating youths and working ladies, towards purchasing
bikes, who were prior slanted towards sulked buys. During the 90s, this pattern was turned

9
around with the presentation of scooterettes. In accordance with this, the bike portion has reliably
lost its piece of the piece of the pie in the bike showcase.

In 1990, the whole car industry saw a radical fall popular. This brought about a decrease of 15%
in 1991 and 8% in 1992, bringing about a generation loss of 0.4mn vehicles. Notwithstanding
Hero Honda, all the significant makers experienced downturn in FY93 and FY94. Legend Honda
demonstrated a peripheral decrease in 1992.

The explanations behind downturn in the division were the unremitting ascent in fuel costs, high
info expenses and discounted buying power because of huge ascent by and large value level and
credit mash in customer financing. Components like expanded creation in 1992, because of new
contestants combined with the downturn in the business brought about organizations either
announcing misfortunes or a fall in benefits.

India is one of the not many nations fabricating three-wheelers on the planet. It is the world's
biggest producer and merchant of three-wheelers. Bajaj Auto directions an imposing business
model in the local market with a piece of the overall industry of above 80%, the rest is shared by
Bajaj Tempo, Greaves Ltd and Scooters India.

The complete number of enrolled bikes and three-wheelers on street in India, as on March 31,
1998 was 27.9mn and 1.7mn individually. The bike populace has nearly multiplied in 1996 from
a base of 12.6mn in 1990.

About Hero Motercop:

Legend MotoCorp Ltd., in the past Hero Honda, is an Indian bike and bike maker situated in
New Delhi, India. Saint Honda began in 1984 as a joint endeavor between Hero Cycles of India
and Honda of Japan. The organization is the biggest bike producer in India. The 2006 Forbes 200
Most Respected organizations rundown has Hero Honda Motors positioned at #108.

In 2010, when Honda chose to move out of the joint endeavor, Hero Group purchased the offers
held by Honda. Therefore, in August 2011 the organization was renamed Hero MotoCorp with

10
 another corporate personality On June 4, 2012,Hero MotoCorp endorsed a proposition to
combine the venture

arm of its parent Hero Investment Pvt. Ltd. into the automaker. The choice comes following year
and a half of its split from Honda Motors.

Need of Study :

 To see how the board work in an association and how an association can develop with the
assistance of an extraordinary administration.
 To find out about the Two-Wheeler Automobile Industry. How the oversee and how saint
motercop accomplish this level.
 To find out about saint motercop.
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 CHAPTER-2

LITERATURE REVIEW

This chapter deals with the overall review of the literature available on the particular topic.

Literature is the most important part of any research. In this topic, the review is taken from

research articles and books regarding the research topic. This chapter contains Review of

Research Articles, Review of Books, thesis and review of other related published or

unpublished literature available on the concerned topic.

Abhijeet Singh and Brijesh Kumar (2011) has mentioned that Hero Honda Motors Ltd, is

running a program called Good life Passport to Relationship Reward, with an objective to

create an innovative environment for interaction between Hero Honda and its customers.

Members of this program are given a magnetic card in which all information is stored and

this card is swiped when using any service at a showroom or workshop and it works like a

loyalty benefit card.

Mahantesh Sabarad (2012) has argued in context to Hero moto corps move to replace all

Honda products and not brand names, that Indian consumers tend to be quick in noticing any

difference between the current and past variants of motorcycles they buy and any product

shortcoming would be at the Hero moto-corps disadvantage. The researcher agrees the same.

12
In their study Michael Cusumano, Steve Kahl and Fernaando Suarez (2008) a theory of

services in product industries, have concluded that in today’s time it is the service component

which is important even in the product industries one classic example for this is the HERO

where in manufacturers are earning revenues from the service activities related to their

products. Now a day a large amount of revenues in the automobile industry comes from other

product-related service activities such as insurance and after sales. The authors argued that

despite the seeming importance of services, there is not much theory to help researchers or

practitioners explain the conditions under which services matter in product industries. The

general view that emerges from the services literature is that services tend to become

important for manufacturing firms once their industries reach a mature stage.

Mona J Fitzsimmons (2010) has concluded that the profitability of automobile

manufacturers depends on exploiting value added services for instance automobile

manufacturers have discovered that financing and after sales service can achieve significant

profits.

Oyama (2012) has quoted that Honda Motors as a company has a vision for 2020 that the

company wants to be number one position in the Indian market and moreover the company is

preparing for 30% of Honda’s global sales to come from Indian operation, the author

believes that the same vision can be achieved if they could solve the issues related to

production in the past which led to the longest waiting period for the company’s most of the

products in the Indian market, the effect of this was visible in company’s less penetration in

13
the rural market, which now stands at is less than a third of Hero Moto Corp.

Chairman and MD of Hero Moto Corp. Venu Srinivasan (2012) has quoted that the

company has multiple platforms when compared to competition and the company if focusing

to boost profitability by using fewer product platforms and cutting down the number of

components that go in the scooters and motorcycles, the entire process would take three

years. The researcher is of the opinion that this move taken by the company is the need of the

hour and will benefit the company in coming years.

Tina Nilsson (2004) explained that the main benefit of having good customer relationships is

that it helps one to stay in business and argued that the company's good customer

relationships facilitates the customer interaction when the salespersons were not available

and moreover the customer relationship results in higher sales because a relationship builds

trust and trust leads to repeat business and this also broadened the market access of the

company.

Govind Hemraj (2011) has concluded that after sales service operations have been very

crucial in the automobile business and customers are very sensitive about maintenance of

their vehicles. If customers are dissatisfied with the charges or quality of the service an

authorized dealer provides, they will take their maintenance problem to roadside garage

owner, moreover customers have general perception that the service charges levied by an

authorized dealership are higher compared to the next door garage owner, but at the same

14
time, they are also aware that the authorized dealers’ service shop has highly skilled people

and variety of sophisticated equipment for maintenance of vehicles and the automobile

organizations and dealers confront the dilemma of improving the workshop traffic and

retaining the customers after the completion of mandatory free services for which customers

generally visit the authorized outlet.

The study by Ch Venkatadri Naidu, P Madar Valli and A V Sita Rama Raju (2010)

observed that in India, automobile service sector occupies a strategic position in the

economic development, although, sales rate of auto vehicles e.g. Hero Moto Corp. have been

continually and rapidly increasing, a similar growth has not been in the growth of auto

service sector which leads to customer dissatisfaction. As a result, there is a need to establish

and develop service centers to meet the customer demands. Most of the vehicle

manufacturers are establishing their service centers in proportion to their sales growth and no

scientific studies or methods have been developed on improving the service rate of the

existing centers.

As per Vijay Sethi, CIO and CHRO, Hero MotoCorp (Oct 17, 2019) ,In another first, the

company launched its e-Commerce platform – hgpmart.com for selling Hero Genuine Parts,

Accessories and Two Wheelers. This is a first of its kind initiative by a two wheeler OEM

where customers can directly buy products online. Parts and Accessories bought using this

platform are delivered to the customers’ doorstep.

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To improve customer satisfaction, the firm launched a ‘Job Card Creation’ app using which

Job Card at the service station can be opened through the mobile. “This has reduced job card

creation time to 30-40 seconds from approximately 2 to 3 minutes. Currently 75 per cent of

job cards are created using this app saving 1800+ man months of effort and support our green

our green initiative by saving about 21 million paper, which translates to saving about 6000

trees per year.”

Understanding the critical importance of being visible and being discovered on search

engines, Hero MotoCorp has also created digital business listings for all its dealers. This has

strengthened local Search Engine Optimisation and has greatly helped the customers in

finding Hero dealerships with ease, which in turn has helped the firm improve footfall for

sales and service.

Pawan Munjal, chairman of Hero MotoCorp told ET "In 2011, we went against the

conventional wisdom and took the bold step of walking out of an established joint venture.

We had the confidence in our inherent capabilities and our performance has vindicated our

belief… The journey of Hero in these past six years reflects the story of the technology-

driven new India, its youth and their global aspirations,"

Sridhar V, Partner, Grant Thornton India, said: "The market for two-wheelers has

expanded at a rapid pace over the last decade with coverage of the urban, semi urban and

rural markets. It is not surprising that companies have been able to grow and sustain

volumes-… by meeting customer expectation and through quality."

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 CHAPTER-3

RESEARCH METHODOLOGY

An exploration configuration is a system or blue print for directing the examination venture.

It subtleties the strategy essential for acquiring the data required to structure and take care of

research issue. An exploration configuration establishes the framework for directing the task.

To distinguish the issue, to create and move toward the issue and to plan a suitable research

structure, essential research is utilized. An organized poll will be intended for quantitative

examine and will be pre-tried before utilizing as a last instrument for gathering the

information with the help of Primary and Secondary Data.

SOURCE OF DATA:

Primary data

Secondary data

1. Primary Data:

Primary information are those information which are gathered straightforwardly by the

analysts themselves. In any case, the way toward gathering essential information is

increasingly convoluted the primary information is gathered by utilizing essential techniques,

for example, polls, interviews, perceptions, and so forth. For this investigation polls are

utilized to gather primary information from the clients.

2.Secondary Data:

Secondary information for the most part incorporate past records or reports of any

association. Any article or report distributed in papers, books and so forth the information

can be gathered at less expense of time and money.

17
 COMPANY BACKGROUND

ABOUT THE COMPANY:

Saint MOTOCORP is a worldwide corporate, a worldwide brandwith advancement at the center

of its way of thinking. The New Delhi (India) headquartered Hero MotoCorp has been at the
front line of planning and growing innovatively propelled cruisers and bikes for clients around
the globe. It turned into the world's biggest bike maker in 2001, as far as unit volume deals in a
schedule year, and has kept up the interest title for as long as 18 years.

It was around 90 million fulfilled client over the globe. This organization was begun by
BRIJMOHAN LAL MUNJAL and now it was driving by DR. PAWAN MUNJAL, director of
the organization.

Saint MotoCorp is the predominant market pioneer in India – the world's biggest bike advertise –
with over half offer in the local cruiser showcase. It has the World class innovative work
capacities. In the northern Indian province of Rajasthan, is the worldwide center point of Hero's
Research and Development.

Legend MotoCorp's assembling offices depend on the center rule of economical advancement, as
the Company stays focused on keeping up the most noteworthy biological gauges. Legend
MotoCorp has seven all around benchmarked fabricating offices, incorporating five in India and
one each in Colombia and Bangladesh. It turned into the main Indian bike organization to set up
an assembling base in Latin America when it began tasks at its assembling office at Colombia in
2016.

Legend MotoCorp is one of the biggest corporate advertisers of different teaches in sports over
the globe. Driving development in sports to pull in new spectators, Hero MotoCorp has been

18
related with Golf, Football, Field Hockey and Cricket for more than two decades now. This
organization is the greatest brand minister in the game world.

The organization has sold more than 70 million 2-wheelers since its commencement in 1984 till
March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were bikes.
Legend Motocorp sells more bikes than the second, third and fourth set bike organizations set up
together. Its most well known bicycle Hero Honda Splendor sells more than one million units for
every year.

This organization become the initial bike organization selling 6,25,000 units in a month.

As on 31 March 2014, the organization had 6,782 workers, out of which 66 were ladies (1.1%).
It likewise had approx. 13,800 impermanent representatives on that date. .

By 2010 December, there is an end between saint gathering and the Honda bunch as on choice
taken by the Hero Honda Board of Directors.

VISION OF HERO MOTOCORP:

The tale of Hero Honda started with a straightforward vision - the vision of a portable and an
enabled India, controlled by its bikes. Saint MotoCorp Ltd., organization's new character, mirrors
its dedication towards furnishing world class versatility arrangements with reestablished center
around growing organization's impression in the worldwide field.

CRUCIAL HERO MOTOCORP:

Legend MotoCorp's strategic to turn into a worldwide venture satisfying its clients' needs and
yearnings for versatility, setting benchmarks in innovation, styling and quality with the goal that
it changes over its clients into its image advocates. The organization will give a connecting with
condition to its kin to perform to their actual potential. It will proceed with its attention on
esteem creation and suffering associations with its accomplices.

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 Authoritative Structure

(Fig Number ----- --2.1)

DR.Brijmohan lall Munjal –Chairman.

Mr. Pawan Munjam-M.D & CEO.

20
Mr. Sunlikant Munjal- Joint M.D.

Mr. PradipDindodiya – Non Executive & Independent Director.

V.P Malik – Non Executive & Independent Director.

Mr. Sumankant Munjal – Non Executive & Independent Director.

Mr. Paul Edgerley – Non Executive & Independent Director.

Dr. Anand Burman – Non Executive & Independent Director.

Mr. Damodaran – Non Executive & Independent Director.

Dr. Pritam Singh – Non Executive & Independent Director.

Mr. Ravi Nath – Non Executive & Independent Director.

Culture of Hero Motercop

A company that believes in maintaining ecological standards along with business standards.
"We must do something for the community from whose land we generate our wealth." -
Chairman Dr.Brijmohan Lall Munjal.
At Hero MotoCorp, our goal isn't limited to business but encompasses the broader spectrum of
serving humanity through social initiatives. Hero MotoCorp takes a stand as a socially
responsible enterprise respectful of its environment.
Hero MotoCorp has been strongly devoted not only to environmental conservation programs but
also expresses the increasingly inseparable balance between economic concerns, environmental
and social issues faced by business. A business must not grow at the expense of mankind but
must serve humankind at large.

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Environment Policy

We at Hero MotoCorp have been resolved to exhibit greatness in our ecological presentation
consistently, as an inborn component of our corporate way of thinking

To accomplish this we concede to:

• Integrate ecological traits and cleaner creation in the entirety of our business procedures
and practices with explicit thought to substitution of perilous synthetic concoctions and
reinforcing the greening of store network.

• Continue item developments to improve natural similarity.

• Comply with all relevant natural enactment and furthermore controlling our ecological
releases through the standards of "alara" (as low as sensibly attainable).

• Institutionalize asset preservation in the regions of oil, water, electrical vitality, paints
and synthetic substances.

• Enhance natural consciousness of our workers and sellers/merchants, while advancing

their inclusion in guaranteeing sound ecological administration.

Quality Policy

Greatness in quality is the fundamental belief of Hero MotoCorp theory.

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 improvement in our absolute quality administration frameworks.

• Teamwork and duty.

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Security Policy

We accept that sheltered work practices lead to better business execution, persuaded workforce
and higher profitability.

We will make a security culture in the association by:

• Integrating security and wellbeing matters in the entirety of our exercises.

• Promoting security and wellbeing mindfulness among representatives, providers and

contractual workers.

• Continuous upgrades in security execution through safety measures be sides interest and
preparing of workers.

• Ensuring consistence with all material authoritative necessities.

• Empowering representatives to guarantee security in their individual work places.

23
 Chapter-4
DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF FINANCIAL STATEMENT

 The company sold over 78.21 lakh vehicles during the financial year.

 The company reported its highest ever revenue of Rs.34,342 core in the financial year

2018-19.

 Total income from operation increases by 33,650.54 to 32,230.49.

 Consumption of raw material increases by23,346.10 to 21,857.79.

HERO MOTOCORP Income Statement Analysis

 Operating income during the year rose 4.7% on a year-on-year (YoY) basis.

 The company's operating profit decreased by 5.8% YoY during the fiscal. Operating

profit margins witnessed a fall and stood at 14.8% in FY19 as against 16.4% in FY18.

 Depreciation charges increased by 8.6% and finance costs increased by 20.7% YoY,

respectively.

 Other income grew by 31.3% YoY.

 Net profit for the year declined by 6.9% YoY.

 Net profit margins during the year declined from 11.3% in FY18 to 10.0% in FY19

24
HERO MOTOCORP Balance Sheet Analysis

 The company's current liabilities during FY19 down at Rs 44 billion as compared to Rs

45 billion in FY18, thereby witnessing an decrease of -1.6%.
 Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY18, a fall of
16.6%.
 Current assets fell 7% and stood at Rs 84 billion, while fixed assets rose 4% and stood at
Rs 55 billion in FY19.

HERO MOTOCORP Cash Flow Statement Analysis

 HERO MOTOCORP's cash flow from operating activities (CFO) during FY19 stood at
Rs 10 billion on a YoY basis.
 Cash flow from investing activities (CFI) during FY19 stood at Rs 13 billion on a YoY
basis.
 Cash flow from financial activities (CFF) during FY19 stood at Rs -23 billion on a YoY
basis.
 Overall, net cash flows for the company during FY19 stood at Rs 775 million from the Rs
566 million net cash flows seen during FY18.


Current Valuations for HERO MOTOCORP

 The trailing twelve-month earnings per share (EPS) of the company stands at Rs 173.6, an
decline from the EPS of Rs 186.4 recorded last year.
 The price to earnings (P/E) ratio, at the current price of Rs 2,413.0, stands at 14.2 times its
trailing twelve months earnings.
 The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the
price to sales ratio stands at 1.9 times.
 The company's price to cash flow (P/CF) ratio stood at 12.0 times its end-of-year
operating cash flow earnings

25
 Ratio Analysis for HERO MOTOCORP

 Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY19, from
2.0x during FY18. The current ratio measures the company's ability to pay short-term and long-
term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at
136.7x during FY19, from 171.2x during FY18. The interest coverage ratio of a company states
how easily a company can pay its interest expense on outstanding debt. A higher ratio is
preferable.

 Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 26.4% during
FY19, from 31.1% during FY19. The ROE measures the ability of a firm to generate profits from
its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 38.8%

during FY19, from 43.9% during FY18. The ROCE measures the ability of a firm to generate profits

from its total capital (shareholder capital plus debt capital) employed in the comReturn on Assets

(ROA): The ROA of the company declined and down at 18.9% during FY19, from 21.6% during

FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

26
 Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*

Current ratio x 2.0 1.9

Debtors’ Days Days 16 29

Interest coverage x 171.2 136.7

Debt to equity ratio x 0.0 0.0

Return on assets % 21.6 18.9

Return on equity % 31.1 26.4

Return on capital employed % 43.9 38.8

27
 Analysis of Share price

Date Share price

10-10-19 2601.95
09-10-19 2603.8
07-10-19 2674.75
04-10-19 2668.85
03-10-19 2665.5
01-10-19 2689.55
30-09-19 2700.85
27-09-19 2727.65
26-09-19 2760.25
25-09-19 2704.6
24-09-19 2755.8
23-09-19 2824.15
20-09-19 2866.5
19-09-19 2532.45
18-09-19 2575.95
17-09-19 2570.05
16-09-19 2739.55
13-09-19 2776.55
12-09-19 2737.3
11-09-19 2760.6
09-09-19 2690.05

28
06-09-19 2659.45
05-09-19 2603.8
04-09-19 2566.25
03-09-19 2557.95
30-08-19 2571.85
29-08-19 2548.35
28-08-19 2569.65
27-08-19 2610.65
26-08-19 2589.6
23-08-19 2640.25
22-08-19 2625.85
21-08-19 2714.2
20-08-19 2669.3
19-08-19 2632.75
16-08-19 2667.85
14-08-19 2634.95
13-08-19 2565
09-08-19 2621
08-08-19 2587.6
07-08-19 2505.2
06-08-19 2465
05-08-19 2400.25
02-08-19 2401.4
01-08-19 2367.7
31-07-19 2356.2
30-07-19 2259.35
29-07-19 2403.75
26-07-19 2468.05

29
25-07-19 2386.1
24-07-19 2404.3
23-07-19 2469.3
22-07-19 2404.9
19-07-19 2387.65
18-07-19 2479.7
17-07-19 2522.15
16-07-19 2542.45
15-07-19 2546.05
12-07-19 2569.05
11-07-19 2507.25
10-07-19 2400.15
09-07-19 2441.2
08-07-19 2380.2
05-07-19 2513.6
04-07-19 2605.85
03-07-19 2587.05
02-07-19 2597.65
01-07-19 2617.7
28-06-19 2584
27-06-19 2598.1
26-06-19 2574.1
25-06-19 2583.3
24-06-19 2585.35
21-06-19 2605.5
20-06-19 2663.4
19-06-19 2607.4
18-06-19 2667.55

30
17-06-19 2647.75
14-06-19 2673.2
13-06-19 2707.7
12-06-19 2732.9
11-06-19 2775.9
10-06-19 2748.95
07-06-19 2760.65
06-06-19 2780.95
04-06-19 2754.95
03-06-19 2842.5
31-05-19 2681.4
30-05-19 2717.7
29-05-19 2722.8
28-05-19 2749.95
27-05-19 2821.95
24-05-19 2828.35
23-05-19 2739.65
22-05-19 2698.8
21-05-19 2656.85
20-05-19 2710.1
17-05-19 2623.5
16-05-19 2516.3
15-05-19 2496.4
14-05-19 2508.85
13-05-19 2509.9
10-05-19 2509.05
09-05-19 2536.15
08-05-19 2500.7

31
 07-05-19 2528.25
06-05-19 2527.35
03-05-19 2567
02-05-19 2551.6
30-04-19 2512.65
26-04-19 2604.15
25-04-19 2617.45
24-04-19 2623
23-04-19 2637.1
22-04-19 2683.7
18-04-19 2739.3
16-04-19 2733.85
15-04-19 2701.4
12-04-19 2640.05
11-04-19 2602.9
10-04-19 2599.4
09-04-19 2626.55
08-04-19 2587.1
05-04-19 2617.05
04-04-19 2637.7
03-04-19 2582.6
02-04-19 2569.65
01-04-19 2558.5
(Table---4.1)

range 607.15
mean 2607.211328
standard deviation 115.5574454

32
 PESTLE AND COMPTITIOR

ANALYSIS

 1: P – Political
 2: E – Economic
 3: S – Social
 4: T – Technological
 5: E – Environmental
 6: L – Legal

Talking about case examination, in case you're scanning for one and you can't seem to find
where to search for it. Case investigation can be contingent upon a few models, not just for
business employments. A business case investigation is a report that empowers looks into and
other verifiable information to help in the introduction of specific activities that are should have
been cultivated by a specialist co-op.

Analyze your examination at whatever point you have wound up composing. When composing
your investigation, you likewise require to comprehend what you should stay away from.
Ordinarily, in the event that you adhere to the means for examination discussed in the past
segment, you right now will have outstanding structure for your composed discussion. The case
investigation runs by looking at an entire through autonomous components, and it is regularly an
awesome apparatus for stalling something complex. It might be less difficult to fathom how a
contextual investigation examination functions in the event that you have a delineation of an
organization case, and a representation of a contextual analysis investigation. It wins to be
requested to put forth up a defense study investigation in college, especially in case you're an
association understudy.

33
Political

Now and again, cases overseeing famous administrations do exclude flow research study because
of the way that it wasn't accessible at the time the case was composed. The Service Case
Templates 2018 arrangement is expected to control you to a specialist remarkable association
case successfully. On the off chance that the business case and proposed arrangement utilizes
development, try to illuminate the technique the advancement is used and indicate the terms
utilized in a glossary.

Inevitably in your investigation of brain science, you might be approached to make a contextual
analysis. Some of the time, your contextual investigation will concentrate just on the individual
of premium. Be specific to analyze with your teacher for a specific benchmarks that you need to
pursue in case you're coordinated to put forth up a defense study for a brain science program.

Composing a contextual investigation can be an intense activity given that you require to ensure
each fitting the truth is comprised of. The promoting contextual investigation is only one of the
most established and most respected instances of substance publicizing.

Economical

Whenever you manage a contextual investigation, remember that there are a couple of traps to
maintain a strategic distance from! Case research studies have an affinity to be abstract and it's
on occasion intense to sum up results to a higher populace. Inherent contextual analyses are a
type of contextual investigation where the researcher has an individual enthusiasm for the
occasion.

You have all your data, you comprehend what issues you face and the manner in which they may
be tackled, and you recognize what data should be comprised of. After you are comfortable with
the data, utilize the subsequent stage by-step rules to put forth up a defense study examination.
Also, it should simply incorporate adequate subtleties to support decision making. It's feasible
for you to uncover a ton of valuable information by sharing the achievement of among your
demographic and demonstrating how your administration or item can be utilized without
contributing a bundle.

34
Beside giving you some amazing procedures and rules, you may moreover take a look at our
examples. A decent take a gander at our case of research project will give you a chance to
comprehend the lengths to which are scholars go to supply the most ideal work you've at any
point experienced. Finding the perfect kind of case research concentrates to set into your paper is
considerably harder. To begin with, in any case, you must have an amazingly clear feeling of the
value of the examination that you need to clarify. When composing an organization contextual
investigation examination, you need to at first have an amazing comprehension of the contextual
investigation. The principle motivation behind an organization case investigation is to explain
data and factors that are required by the organization and to create suggestions that will be
helpful in achieving the ideal objectives of the organization.

It might be less difficult to understand how a contextual investigation examination functions in

the event that you have a representation of a business case, and an outline of a contextual
investigation examination. Sometimes, cases overseeing generally realized organizations do
exclude exceptional research study since it wasn't promptly accessible at the time the case was
made. Now and again, your contextual analysis will concentrate just on the individual of
intrigue. Inborn case research studies are a sort of contextual investigation where the researcher
has an individual enthusiasm for the conditions. When composing an association contextual
investigation examination, you need to initially have an extraordinary comprehension of the
contextual investigation.

At the point when it includes reviewing the investigation, there isn't any prerequisite to talk
about the PEST names in any regard. The investigation in like manner expands your chances to
procure more benefit in business. A graphical method for PEST examination alluded to as'
PESTLEWeb 'has really been made at Henley Organization School in the assembled realm. It is
in like manner done to assess the limit of another market. Finishing an INSECT examination is
extraordinarily basic, and is an extraordinary subject for workshop sessions. Saint Motocorp
PEST or PESTEL examination is a basic and productive instrument used in situation
investigation to recognize the basic outer (full scale condition level) powers which may affect an
organization.

35
Social

SWOT examination is the most consistently utilized device. It is among the advantageous
devices that can improve your item and techniques at each phase of your item's lifecycle. There
is something that you should understand about SWOT examination. It tends to be used to
recognize the present market position of thecompany while Hero Motocorp PESTEL is utilized
to distinguish the effect of outer natural elements which may influence in association
developments. SWOT Analyses may be used to perceive the present market position of the
organization while PESTEL is utilized to discover the effect of outside natural viewpoints which
may affect the business tasks, particularly when expanding business activities into various
different regions.

When your examination is done, it's an ideal opportunity to do a technique to grow your upper
hand. The PESTLE Analysis should be utilized to give a setting to your administration' job as to
outer components. Finishing a PESTLE investigation might be an advanced or basic practice.

When pondering each factor you wish to figure out what the component is and what the impact
will be on the organization. Lawful features examine the aftereffect of the enactment and law
rehearses that should be trailed by the organizations. They influence the business' activity, its
expenses, and the requirement for its things. The political components which influence the
development business are with respect to the approvals and documentation which must be
obtained during the various phases of development.

Social perspectives are the exceptional characteristics of people who dwell in the condition your
business runs in. If there should arise an occurrence of Amazon, the outside components indicate
the respects to the web based business showcase condition, with center around the web retail
division. Biological segments examine the world around the association and any angles which
may have a result on the environment. Political components consider the legislature and political
activities or changes that may influence your organization. The Political angles to research ought
to incorporate new enactment, comprising of the national the lowest pay permitted by law and
assessment rates comprising of BARREL or Corporation Tax.

36
Technological

Introduction In breaking down the full scale condition, it is basic to perceive the segments that
may subsequently influence various of significant factors which are well on the way to impact
the association's inventory and need levels and its expenses. In section 2 rundown HOW they 'd
sway your association when you have really decided the angles that may affect your
organization. It's likewise pivotal to be aware of the statistic parts that can influence your private
venture. Budgetary component fundamentally comprises of the strategy by which the economy
capacities and the outcome it has on the working of the business. Having the outside Economic
angles drawn up could enable you to anticipate future budgetary examples for instance, an
anticipated monetary downturn would keep your organization from raising the work power.

Legal

Mechanical components affect the cost and high caliber of the yields. Large scale prudent
components deal with the administration of need in a particular economy. There are loads of
components changing in the outer condition anyway not all them are affecting or may impact an
organization.

SWOT focuses on your business and its position however you can utilize Five Forces to assess
rivals. She or he is a condensing that has gotten a. She or he is often used to get a picture of
organization's present position. She or he is one of the most as often as possible used
administrations instrument.

The Porter's 5 Forces instrument is a fairly solid device. There are loads of formats out there for
organizations to direct PESTLE investigation.

Ecological

37
The investigation likewise builds your chances to make more profit in the administration. A
graphical technique for PEST investigation known as' PESTLEWeb 'has really been created at
Henley Company School in the joined realm. Irritation or Hero Motocorp PESTEL examination
is a proficient and simple instrument utilized in situation investigation to perceive the basic outer
(full scale condition level) powers which may affect an association.

SWOT Analyses may be utilized to perceive the present market position of the organization
while PESTEL is used to discover the impact of outer natural components which may influence
the administration tasks, especially when expanding the organization activities into various
different areas. The PESTLE Hero Motocorp Analysis requires to be utilized to supply a setting
for your administration' work with respect to outer components.

COMPETITIOR OF HERO MOTOCORP

RAN COMPAN LEADERS CEO NO OF TOTAL RECEN

K Y HIP SCOR EMPLOYE FUNDI UE
E ES NG
80/100 8,266 $0 $5B
Pawan
Munjal

Chairman &
CEO

1 66/100 8,013 -- $4.3B

Rajiv Bajaj

Managing

38
 Director

2 70/100 5,184 -- $2.5B

KN
Radhakrishnan

President & CEO

3 85/100 85/100 $102M $4M

Tarun Mehta

Co-Founder &
CEO

4 76/100 22 -- $ < 1M

Dhivik Reddy

CEO

5 91/100 175 $22.4M $20M

Sohinder Gill

CEO

39
6 84/100 34,515 -- $11.4B
Kenichi
Ayukawa

CEO

7 56/100 53,579 -- $14.8B

Yoshihiro Hidaka

President & CEO

8 72/100 53,579 -- $85B

Mong Koo
Chung

Chairman &
CEO

9 65/100 81,090 $45M $42.4B

Guenter
Butschek

CEO

10 93/100 3,578 -- $714.3

M

40
 Vinod K Dasari

CEO

(Table—5.1)

SWOT Analysis of Hero Motocorp

(Fig---5.1)

Strengths

Hero Motocorp enjoy various competitive advantages and strengths that has contributed to its
success and immense growth for more than 3 decades.

Brand Recognition –

Brand and brand trust has a gigantic influence when buy choices are made by shoppers. Legend
MotoCorp is a solid brand which is synonymous with dependability and eco-friendly bikes. As

41
per The Brand Trust Report distributed by Trust Research Advisory, the aggregate flooded 223
spots to rank 33 as one of India's most confided in brands in 2018. It was positioned 6 in the car
class, the most elevated of any Indian bike producer in the waitlist.

Broad Domestic Network –

Legend MotoCorp has more than 6,500 businesses and administration focuses crosswise over
India. The huge number of administration focuses has enabled it to reveal its Express Service
plot, where it endeavors to support a client's vehicle inside an hour.

Solid Global Presence –

As far back as the end of the joint endeavor between Hero Group of India and Honda of Japan,
Hero MotoCorp started to build up its worldwide impression. Starting late 2018, its bikes are
being sold in more than 37 nations and has 8 assembling plants in 3 nations.

Enormous Product Portfolio –

Not exclusively does Hero MotoCorp give a huge assortment of bikes, it is moving quickly close
by current market drifts too. In late 2016, it made its first adventure into the electric vehicle
advertise by putting resources into a Bangalore-based tech maker, Ather Energy. It has a rich and
differentiated portfolio focusing on various fragments. For instance, the XPulse arrangement is

42
cooked towards the global buyer and the Xtreme arrangement is focused at the developing

premium cruiser portion.

(Fig---5.2)

Weakness

Regardless of its solid household nearness and enormous advertise, Hero MotorCorp still have a
few shortcomings that can undermine its development and future.

Poor Gender Diversification - generally 2018, Hero MotoCorp had just 256 female
representatives out of 8266, Although the figure has significantly increased from a simple 1% in
2014, considerably more still should be possible to address the sex disparity and enhancement.

Worldwide Exports - Despite having an immense piece of the pie locally, Hero MotoCorp is still
to a great extent concentrated on India. In 2017, just 12% of the units sold by every one of the

43
bike producers in India added to trades. This is enormously overshadowed by China, which had
sent out over 46% of units sold, multiple occasions the sum. As more contenders are hoping to
hop on the bike showcase in India, it would be indiscreet for the organization to exclusively
concentrate on its home ground.

Declining Service Quality - In an investigation led by the International Journal of Innovative

Research in Science, Engineering and Technology in 2015, the general assistance quality for
Hero MotoCorp fell beneath desires for end buyers. As per the examination based utilizing
SERVQUAL model of administration quality, Bajaj Auto, perhaps the nearest contender, was
regarded to have better by and large help and advance.

Opportunity

Joint Ventures and Acquisitions - Despite the ended joint endeavor with Honda Japan, it is
essential to take note of that for a long time, innovation in its bikes originated from Honda. By
procuring new businesses or going into joint endeavors will enable the combination to acquire
progressively significant innovation and tap into other market sections. A genuine model is its
49.2% stake buyout of Erik Buell Racing, which permits Hero MotoCorp to synergize engine
advances and expand deals into the North American market.

Electric Two Wheelers - The electric bicycle and bike market is blasting universally and it would
be an open door for Hero MotoCorp to use on. The e-bicycle market is relied upon to reach about
24.3 billion U.S. dollars by 2025. As per Prescient and Strategic Intelligence, the electric bike
and bikes advertise in India alone will flood past $617.7 million by 2025.

Threat

Solid Competition - Hero MotoCorp faces solid rivalry locally in spite of its solid a dependable
balance in India. The bike advertise in India is aggressive and is ruled by three other significant

players, TVS Motors, Honda, and Bajaj Auto.

In 2012, Honda propelled made-in-China bikes which are evaluated lower than proportional
cost-productive models. Honda has been extending forcefully since the joint endeavor was ended

44
in 2010. It started luring Hero vendors to join the Honda arrange under its subsidary in India,
Honda Motorcycles and Scooters India Pvt. Ltd (HSMI). Correspondingly, TVS Motors has
teamed up with BMW to set up its essence in the top notch cruiser showcase in direct challenge
with Hero's Xtreme arrangement. Rivalry will keep on staying solid as India is an incredibly
enormous market to dive into.

Open Transport Infrastructure - The administration of India is endeavoring to enhance its open
transport framework. Ventures, for example, the National Highways Development Project
(NHDP) under the aspiring Bharatmala Pariyojana will add on in excess of 80,000 km of
expressways in India. In mid 2019, India's Union Minister Nitin Gadkari reported that India's
open vehicle will be founded on the London model with a MoU with Transport for London
(TFL) being marked in the earlier year. Government activities will diminish the interest for
vehicles if open vehicle turns out to be increasingly dependable.

45
 CSR POLICIES AND

INITIATIVES TAKEN BY HERO MOTOCORP

Dr. Brijmohan Lall Munjal(1st July 1923 to 1st November 2015)

We must give back to the society

from whose resources we generate wealth.
(Img---6.1)

About We Care
At Hero MotoCorp, the standards of CSR are fundamental to the manner in which we lead our
business. We have faith in 'Assembling Happiness' through our different manufacturing plants,
where man, machine and nature cooperate in concordance to limit ecological effect and build up
a sound biological system. Our endeavors center around exercises that improve ecological
capital, bolster rustic advancement and training, encourage medicinal services, make supportable
employments and advance games and street wellbeing mindfulness. We Care is our CSR
Umbrella, under which we have four leader programs – Happy Earth, Ride Safe India, Hamari
Pari and Educate to Empower, that are planned for satisfying the CSR vision to have a Greener,
Safer and Equitable world.

46
CSR VISION

To have a Greener, Safer and Equitable World.

CSR Committee of Hero Motocorp

(Img---3.2)

1. Introduction

The Board of Directors (the "Board") of Hero MotoCorp Limited (the "Organization") has
received the accompanying approach and strategies with respect to Corporate Social
Responsibility. The Board may survey and revise this approach every once in a while subject to
the suggestions of Corporate Social Responsibility Committee.

2. Strategy Objective and Philosophy

It is relevant that business undertakings are monetary organs of society and draw on cultural
assets, we at the organization accept that an organization's exhibition must be estimated by its
Triple Bottom Line commitment to building financial, social and ecological capital towards
improving cultural maintainability. HMCL accepts that in the key setting of business,
undertakings have, past unimportant money related assets, the transformational ability to make
game-changing improvement models by releasing their influence of enterprising essentialness,
development and imagination. In accordance with this conviction, the Company will keep
making exceptional models to produce jobs and make a superior society. Such Corporate Social

47
Responsibility ("CSR") ventures are undeniably increasingly replicable, adaptable and practical,
with a noteworthy multiplier sway on feasible business creation and working for a reason for
humankind.

3. Definitions

"Leading group of Director" or "Load up" signifies the Board of Directors of the Company, as
comprised every once in a while.

"Organization" signifies an organization joined under the Companies Act, 2013 or under any past
organization law.

"CSR Programs" signifies Programs, tasks and exercises did in such manner are the topic of this
Policy.

"Corporate Social Responsibility Committee or Committee" signifies CSR Committee comprised

by the Board of Directors of the Company, occasionally.

"Autonomous Director" signifies a Director of the Company, not being an entire time executive
and who is neither an advertiser nor has a place with the advertiser gathering of the Company
and who fulfills other criteria for freedom under the Companies Act, 2013 and the Listing
Agreement entered with the Stock Exchanges.

"Strategy" signifies Corporate Social Responsibility.

Some other term not characterized thus will have a similar significance as characterized in the
Companies Act, 2013 or some other relevant guideline.

4. Arrangement

a. To direct HMCL's CSR Programs, entomb alia, towards accomplishing at least one of the
accompanying - improving ecological and common capital; supporting rustic improvement;
advancing training including expertise advancement; giving preventive medicinal services,

48
giving sanitation and drinking water; making employments for individuals, particularly those
from impeded areas of society, in country and urban India and saving and advancing games.;

b. To build up the necessary capacity and independence of recipients at the grass roots, in
the conviction that these are requirements for social and financial advancement;

c. To take part in governmental policy regarding minorities in society/intercessions, for

example, aptitude building and professional preparing, to improve employability and produce
vocations for people including from hindered segments of society;

d. To seek after CSR Programs principally in regions that fall inside the financial region of
the Company's tasks to empower close supervision and guarantee most extreme advancement
sway;

e. To do CSR Programs in important neighborhoods satisfy duties emerging from demands

by government/administrative specialists and to reserve measures of monies and to spend such
monies through such regulatory assemblages of the legislature or potentially legitimately by
method for formative works in the neighborhoods which the Company works;

f. To do exercises at the hour of common catastrophe or take part in Disaster Management

framework;

g. To add to the Prime Minister' National Relief Fund or some other store set up by the
Central Government for financial improvement and alleviation and welfare of the Scheduled
Caste, the Scheduled Tribes, other in reverse classes, minorities and ladies;

h. To contribute or give assets to innovation hatcheries situated inside scholarly

establishments which are endorsed by the Central Government;

i. To add to any reserve arrangement by the Central Government or State Government(s)

including Chief Minister's Relief Fund, which might be perceived as CSR movement;

49
j. To advance supportability in organization with industry affiliations, similar to the
Confederation of Indian Industry (CII), PHD, FICCI, and so on so as to have a multiplier sway.

The surplus emerging out of the CSR undertakings or projects or exercises will not frame some
portion of the business benefit of the Company.

5. Usage

To execute the Company's CSR Programs through Company staff or through outside actualizing
organizations or through Raman Kant Munjal Foundation (and other Registered Trusts/Society
or a Section 8 organization that are set up or that might be built up by the Company or its
holding/backup/partner Company every now and then). In such cases, the Company will
determine the CSR Programs which might be attempted by those Trusts/Societies or Section 8
organizations as per their items and authoritative and bookkeeping procedures set down in the
particular Trust Deeds/Memorandum and Articles of Association.

6. Administration

Consistently, the CSR Committee will put for the Board's endorsement, a CSR Plan portraying
the CSR Programs to be completed during the monetary year and the predefined spending plans
thereof. The Board will consider and affirm the CSR Plan with any adjustment that might be
regarded fundamental.

The CSR Committee will allot the errand of execution of the CSR Plan inside indicated spending
plans and time spans to such people or bodies as it might consider fit.

The people/bodies to which the execution is allocated will complete such CSR Programs as
controlled by the CSR Committee inside the predetermined spending plans and time allotments
and report back to the CSR Committee on the advancement subsequently at such recurrence as
the CSR Committee may coordinate.

50
The CSR Committee will audit the usage of the CSR Programs occasionally and issue
fundamental headings every once in a while to guarantee methodical and effective execution of
the CSR Programs as per this Policy.

The CSR Committee will audit occasionally and keep the Board informed of the status of
the advancement of execution of the endorsed CSR Programs.

At long last toward the finish of each money related year, the CSR Committee will present its
report to the Board.

7. CSR Expenditure

CSR consumption will incorporate all use as might be allowed under the relevant laws, including
commitment to corpus for CSR Programs endorsed by the Board on the proposal of its CSR
Committee, yet does exclude any use on a thing not n congruity or not in accordance with
exercises which fall inside the domain of Schedule VII of the Act

8. Revealing

The Board's Report of the Company to incorporate a yearly report on CSR containing points of
interest indicated in the annexure to the standard relating to a budgetary year initiating from
April 1, 2014.

9. Revelations

The substance of the endorsed CSR Policy will be unveiled in the Board's Report and showed on
the Company's site.

51
INITIATIVES taken by Hero Motocorp

Happy Earth Initiatives

Happy Earth is engaged at doing our bit to address ecological
corruption, environmental change or a dangerous atmospheric
devation, which is the best risk we have ever confronted. We take a gander at ecological
debasement as one of the man-made emergencies that will significantly affect the current as well
as future ages of people just as all other living species.

Afforestation

An unnatural weather change is presently a brutal reality. From the thick brown haze that covers
us to the unforgiving and eccentric climate and occasional changes, the earth is consistently
evolving. The rapidly spreading fire in woods, dissolving top soil, retreating water table,
destitute natural life and dirtied air is presently a typical marvel. Our endurance on this planet is
confronting an approaching risk.

We have assumed liability on our shoulder to turn around this pattern by planting trees and
guaranteeing endurance of trees. The entire exertion is going towards improving air quality and
increment in green spread. The advancement of tree's are by and large constantly observed on
ordinary reason for guaranteeing 90 percent endurance.

Barely any unmistakable occasions are

• The Green Drive - This activity was propelled in Delhi NCR with an intend to plant and keep
up trees at parks of Delhi Development Authority (DDA) and Tilpath Valley (Delhi). We banded
together with DDA and Times of India to plant in excess of 120,000 trees in August 2015. This
Drive prepared about 40,000 individuals including understudies of different schools, political

52
and strict pioneers, just as residents of Delhi. To guarantee the endurance of saplings, we work
alongside applicable associations/people and volunteers.

a. Legend Green Drive 2.0

We as of late accomplished a noteworthy generation achievement by revealing our 70-millionth

(7 crore) bike. To praise this noteworthy accomplishment, we have planted 70,000 saplings at
three areas (Tughlakabad, Tilpath Valley and Neela Hauz) in Delhi.

b. Legend Green Drive 3.0

2.75 Lakh tree ranch done crosswise over four area Indore, Gurugram, Delhi and Chandigarh
which saw cooperation of in excess of 48,000 individuals over all area.

c. Venture Ankur - 10,000 Green Corp

First condition centered program by setting up a multitude of green corps containing 10,000
understudies from 100 school who might chip away at a gigantic drive of planning Seed bank ,
start ranch drive and make mindfulness under part of National Green Corp to empower
guardians, peers incorporating colleague and open as a rule.

• Fruit Trees Plantation - We as often as possible arrange green drives concentrated on planting
natural product bearing trees at different areas in Delhi-NCR and Uttarakhand. To include more
networks in this honorable aim, we additionally direct organic product tree estate activities in
halfway houses, BSF Camp, mature age homes, government schools and other open spots. We
have planted more than 4.5 Lakh natural product trees. These trees are relied upon to hold up
under organic products for the following 40-50 years and these natural products will be
accessible to nearby networks for nothing.

• Protecting Bio Diversity - To upgrade effortsof backwoods officers who are our Hero's in
ensuring our biodiversity crosswise over saved zones of nation, we have given them 230 cruiser

53
through WWF ( World Wildlife Fund). The officers who used to watch by walking presently
spread more extensive zones as their portability has expanded commonly.

Sanitation and Hygiene

With an expect to do our bit towards supporting Swachh Vidyalaya Abhiyan, we are
concentrating on building sanitation foundation particularly toilets for government younger
students in 5 states. More than 1211 + toilets have been given over in 146 government schools at
Haryana, Rajasthan, Uttarakhand, Gujarat and Maharashtra.

Water Conservation

• Cleaning and reviving lakes, check dams and building precipitation water gathering offices in
schools is our bit towards rationing water. Until the finish of FY 2018-19, we figured out how to
moderate and channelize more than 75 lakh liters of water.

• Support to Namami Gange - A progression of mindfulness sessions and battles on cleaning

and restoring the River Ganga were sorted out to help the administration's Namami Gange
venture. A huge number of younger students were urged to take an interest in the Clean Ganga
Mission.

To further make mindfulness about the centrality of clean waterways, cycle rallies, tree estate
drives, squander the board projects and melodic occasions were additionally led.

Aarush

It is planned for empowering elective and eco-accommodating vitality assets, the task has two
principle segments – advance use of LEDs and establishment of sun oriented streetlights in rustic
hinterlands.

a) Replace customary lights with LEDs and skilling the network to make and fix them In
continuation of our endeavors to spare vitality and give LED lights in the remote towns of
Uttarakhand, this FY we have supplanted 57,538 traditional lights with 7W LEDs in 13,052

54
family units in 304 towns of KedarGhati – home to overcomers of one of the most exceedingly
awful floods that the nation had seen.

This year, submitting general direction to Misraas Patti town (in area Dehradun), which turned
into the nation's first town to be completely LED lit with all family units utilizing just LED
lights, we revealed a similar activity in excess of 27 towns in Uttarakhand. By and large, 25,779
families are utilizing 108,308 LED lights and will spare more than 3 crore power units spared
every year. Another focal point of the undertaking is comprehensive advancement and is
essentially claimed by the nearby network wherein a couple of ladies and youth from every town
are prepared to make and fix LED lights. 210 local people are utilized under this undertaking and
winning liberally.

b) Solar Street Lights to spare power and make towns more secure This year, weincreased the
entrance of sun powered road lights and introduced 7,332 lights in 119 towns, taking the
aggregate to 13,597 road lights in excess of 250 towns.

In excess of 8 lakh individuals are profiting by more than 794 MWh of tidy vitality to illuminate
probably the remotest towns in India – some of which have gotten streetlight just because.

Mindfulness Campaign

Every Hero representative has taken the CSR promise to be earth cognizant and furthermore
support green and maintainable way of life among their families and companions. Also, through
our entrance, sites, online life and business writing, we guarantee that messages concentrating on
preservation of normal assets and embracing a supportable way of life are spread among the
majority.

55
Hamari Pari Programs

Empower women cops – Project Sakhi

This activity is to engage Women in India, Project Sakhi was
propelled in relationship with the police branches of eight states. The thought is to enable ladies
cops by giving them bikes so as to build their autonomous versatility. Ladies cops are commonly
reliant on their male partners with vehicles on the off chance that they need to arrive at
occurrence/mishap spots or when reacting to pain calls. During the year, we have given 45 bikes
and cruisers to ladies police power, totalling 961 bikes and bikes enabled 1922 ladies cops in
eight states.

The underlying results state that ladies cops are autonomously reacting to more misery calls from
ladies and staying faithful to their obligation of quick activity and wellbeing. Another part of the
program is to make ladies have a sense of security and guaranteed with the nearness of formally
dressed ladies cops riding through the city. At the appointed time, the undertaking is additionally
expected to urge more ladies to join the police administrations.

Bike riding preparing – Project Ek Pahal

This is a one of a kind undertaking, which is engaged at engaging ladies by empowering their
autonomous versatility and breaking the generalization confidence in rustic India that bikes are
just for men. The thought is to prepare ladies in riding bikes with the goal that they are not reliant
on others for their drive. While the initial bike preparing school for ladies was set up at Bhagat
Phool Singh Mahila Vishwavidyalaya in Khanpur Kalan, Sonipat Haryana, the venture has
extended and now preparing focuses are operational at 11 ladies ITIs in Haryana and a police
preparing school.

In excess of 2,700 young ladies have just been prepared on bike riding abilities and many don't
spare a moment to acquire bikes of their dads or siblings to either ride to school or do errands – a
calculable change in the state with important sex proportion. Strangely, business has been the

56
side-effect of the venture. A portion of the young ladies who got the hang of riding in
introductory clusters have graduated to become teachers at the preparation offices and are getting
paid to do as such.

Employability and jobs – Project Jeevika

The undertaking centers around giving work and employability abilities preparing to young
ladies, ladies and youth just as extraordinarily abled people. Practically all recipients of the
undertaking are structure minimized financial foundations and such aptitudes are the initial move
towards making them monetarily autonomous and elevating their way of life.

Employability for young ladies and ladies

Most projects centered at ladies incorporate preparing programs that prepare them to become
employable or business people who can win their very own vocation. The transient courses
incorporate fitting, beautician, cordiality, etc and incorporate significant exercises on self
inspiration, individual prepping and development. We have bolstered expertise improvement of
in excess of 14,500 young ladies/ladies, more than 65 percent of young ladies and ladies who
have finished their course have acquired occupations or have become business people with
significant month to month profit.

There's additionally an authentication program on PCs wherein MS Office devices, Tally, work
area distributing and other such programming are educated. Young ladies are distinctly learning
this close by young men and a significant number of them have just been contracted for work
area occupations at different associations.

Specialized aptitudes for car part

We bolstered numerous organizations that make our childhood employable in different

specialized exchanges car division, particularly the bike business. The dependable accomplice
establishments incorporate National Skill Development Corporation (NSDC), Confederation of
Indian Industries (CII), Swarna Bharat Trust and Kishore Musale beneficent trust (KMCT). VP

57
of India Mr M Venkaiah Naidu had introduced our expertise focus at Hyderabad while Mr
Kamal Nath, Chief Minister of Madhya Pradesh, had initiated our inside at Chhindwara.

Abilities for uncommonly abled

Proceeding with our endeavors to help exceptionally abled people, we upheld three
establishments that emphasis not just on aptitude advancement for uniquely abled people yet in
addition guarantees employments for a large portion of them.

Supporting Beti Bachao Beti Padao

The Beti Padao, Beti Bachao message was presented from the executive's office and seeing its
hugeness, we resolved to help the activity however our CSR endeavors centered at the young
lady youngster. Aside from the numerous projects and exercises that we run under Hamari Pari,
one critical commitment was our relationship with the 'Selfie with Daughters' drive of Punjab
Kesari. The battle spread mindfulness about sex balance through mass interest of individuals
crosswise over India.

58
 CHAPTER-5

FINDINGS-

 The company's current liabilities during FY19 down at Rs 44 billion as compared to Rs 45

billion in FY18, thereby witnessing an decrease of -1.6%.

 Overall, the total assets and liabilities for FY19 stood at Rs 185 billion as against Rs 174

billion during FY18, thereby witnessing a growth of 6%.

 The company's operating profit decreased by 5.8% YoY during the fiscal. Operating profit

margins witnessed a fall and stood at 14.8% in FY19 as against 16.4% in FY18.

 The ROE for the company declined and down at 26.4% during FY19, from 31.1% during

FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital

in the company.

 The ROA of the company declined and down at 18.9% during FY19, from 21.6% during

FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

 The company's current ratio deteriorated and stood at 1.9x during FY19, from 2.0x during

FY18. The current ratio measures the company's ability to pay short-term and long- term

obligations.

59
 RECOMMENDATIONS-

 Early payments to creditors can save interest cost and earn discount which will have a direct

impact on the profits of the firm.

 Reasons for decline in operating profit are- Decline in Sales Revenue, Increase in Overhead

expenses,addressing profit erosion and also periodic decrease in the Revenue also leads to decrease in

Operating Profit which has to be controlled.

 In order to increase ROE more use of financial leverage ,increase in profit margin, improving assest

turnover, strategies to lower down the taxes are some of the ways which should be kept in mind to

increase the ROE.

 ROA can be increased by reducing the expenses, increasing profit/revenue and by reducing the

inventory cost of new plants can help in increasing the ROA.

 In an investigation led by the International Journal of Innovative Research in Science, Engineering

and Technology in 2015, the general assistance quality for Hero MotoCorp fell beneath desires for

end buyers. As per the examination based utilizing SERVQUAL model of administration quality,

Bajaj Auto, perhaps the nearest contender, was regarded to have better by and large help and

advance.

60
 CONCLUSION

India is the second biggest maker and maker of bikes on the planet. It remains next just to Japan

and China as far as the quantity of bikes created and local deals individually. A Company in June

2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero

Investment Pvt. Ltd. with the automaker. Company was begun by BRIJMOHAN LAL

MUNJAL and now it was driving by DR. PAWAN MUNJAL, The company has able to increase

its sales and profit during the year. Companies cashflow ratio increases by 775 from 566.

Company current Assets are also enough to meet the current liabilities. The operations of the

company has therefore improved. The net profit has been increased which proved that company

has been able to control the cost effectively. Hero Motocorps ltd holding the highest share in

Two Wheeler’s Market. Shareholder point of view the company is in profitable as the proposed

dividend increased. performance appraisal in Hero Motocorp is satisfactory for its effective

management and evaluation of staff. Even company motive is not just to earn money or making

profit Hero Motocorp also invest a lot in corporate social responsibility. A lot of initiatives also

started by company such as Greener, Safer, Hamari pari, Educate to empower, Community

development etc.

61
 BIBLIOGRAPHY

 Anand and Hundal B S. (2008), “Perceptions of Consumer Towards Promotional Schemes for

Durables: A Study in Punjab”, The ICFAI University Journal of Consumer Behaviour, June

 http://auto.indiamart.com/two-wheelers/buying-2wheeler

 http://business.mapsofindia.com/automobile/two-wheelersmanufacturers/motorcycles.html

 https://www.investopedia.com/terms/r/ratioanalysis.asp

 https://www.heromotocorp.com/en-in/

 https://en.wikipedia.org/wiki/Hero_MotoCorp

 https://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/heromotocorp/HHM

 https://economictimes.indiatimes.com/hero-motocorp-ltd/stocks/companyid-13636.cms

 https://munafasutra.com/nse/expertView/HEROMOTOCO

62
 ANNEXURES

Hero Motocorp
Standalone Yearly Results ------------------- in Rs. Cr. -------------------

Mar '19 Mar '18

Net Sales/Income from
33,650.54 32,230.49
operations
Other Operating Income -- --
Total Income From
33,650.54 32,230.49
Operations
EXPENDITURE
Consumption of Raw
23,346.10 21,857.79
Materials
Purchase of Traded Goods -- --
Increase/Decrease in Stocks -28.38 -23.15
Power & Fuel -- --
Employees Cost 1,730.24 1,540.13
Depreciation 602.01 555.60
Excise Duty -- --
Admin. And Selling Expenses -- --
R & D Expenses -- --
Provisions And Contingencies -- --

63
 Exp. Capitalised -- --
Other Expenses 3,672.49 3,575.53
P/L Before Other Inc. , Int.,
4,328.08 4,724.59
Excpt. Items & Tax
Other Income 691.25 525.82
P/L Before Int., Excpt. Items
5,019.33 5,250.41
& Tax
Interest 8.60 6.25
P/L Before Exceptional Items
5,010.73 5,244.16
& Tax
Exceptional Items -- --
P/L Before Tax 5,010.73 5,244.16
Tax 1,625.86 1,546.80
P/L After Tax from Ordinary
3,384.87 3,697.36
Activities
Prior Year Adjustments -- --
Extra Ordinary Items -- --
Net Profit/(Loss) For the
3,384.87 3,697.36
Period
Equity Share Capital 39.95 39.94
Reserves Excluding
12,817.17 11,728.94
Revaluation Reserves
Equity Dividend Rate (%) 4,350.00 4,750.00

64
 EPS Before Extra Ordinary
Basic EPS 169.48 185.14
Diluted EPS 169.47 185.13
EPS After Extra Ordinary
Basic EPS 169.48 185.14
Diluted EPS 169.47 185.13

Public Share Holding

No Of Shares (Crores) -- --
Share Holding (%) -- --
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Num ber of shares (Crores) -- --
- Per. of shares (as a % of the
tot al sh. of prom. and -- --
promoter group)
- Per. of shares (as a % of the
total Share Cap. of the -- --
company)
b) Non-encumbered
- Number of shares (Crores) -- --
- Per. of shares (as a % of the
tot al sh. of prom. and -- --
promoter group)

65
- Per. of shares (as a % of the
total Share Cap. of the -- --
company)
Notes |201903 |201803

HERO MOTOCORP Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change

Net Sales Rs m 324,584 339,708 4.7%

Other income Rs m 5,232 6,867 31.3%

Total Revenues Rs m 329,815 346,576 5.1%

Gross profit Rs m 53,251 50,184 -5.8%

Depreciation Rs m 5,750 6,244 8.6%

Interest Rs m 308 372 20.7%

Profit before tax Rs m 52,424 50,435 -3.8%

Tax Rs m 15,699 16,380 4.3%

Profit after tax Rs m 37,222 34,664 -6.9%

Gross profit margin % 16.4 14.8

66
Effective tax rate % 29.9 32.5

Net profit margin % 11.3 10.0

HERO MOTOCORP Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change

Networth Rs m 119,715 131,204 9.6

Current Liabilities Rs m 44,814 44,092 -1.6

Long-term Debt Rs m 1,496 1,248 -16.6

Total Liabilities Rs m 173,967 185,044 6.4

Current assets Rs m 90,022 84,132 -6.5

Fixed Assets Rs m 53,164 55,252 3.9

Total Assets Rs m 173,967 185,044 6.4

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 HERO MOTOCORP Cash Flow Statement 2018-19

No. of
12 12
months
%
Particulars
Year Mar- Mar- Change

Ending 18 19

Cash Flow from Operating

Rs m 40,172 10,323 -74.3%
Activities

Cash Flow from Investing -

Rs m 12,976 -
Activities 18,582

Cash Flow from Financing Rs m - - -

Activities 21,025 22,524

Net Cash Flow Rs m 566 775 37.0%

68
 Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*

Sales per share (Unadj.) Rs 1,625.4 1,700.8

TTM Earnings per share Rs 186.4 173.6

Diluted earnings per share Rs 186.4 173.6

Price to Cash Flow x 11.3 12.0

TTM P/E ratio x 14.2 14.2

Price / Book Value ratio x 6.2 4.9

Market Cap Rs m 481,842 481,844

Dividends per share (Unadj.) Rs 95.0 87.0

69