CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

1
 DATA ANALYSIS AND INTERPRETATION

STATEMENT OF CHANGES IN WORKING CAPITAL

For the year 2017-2018

Particulars 2011 2012 Changes in working capital

(Rs) (Rs) Increase Decrease

Current Assets:
Inventories 143,18,24,825 135,93,30,982 ---- 7,24,93,843
Sundry debtors 11, 21, 33,122 10, 80, 11,642 ----- 41,21,480
Cash and bank balances 5,02,62,789 6,81,47,393 1,78,84,604 ----
Other current assets 10,21,849 15,13,709 4,91,860 ----
Loans and advances 38,99,83,272 46,65,45,285 7,65,62,013 ----
Total current assets 198,52,25,857 200,35,49,011
Current liabilities and
Provisions:
Liabilities 101,65,48,666 85,25,17,150 16,40,31,516 ----
Provisions 84,36,782 1,24,02,990 ---- 39,66,208

Total current liabilities

And provisions 102,49,85,448 86,49,20,140

Net working capital:

(C.A-C.L) 96,02,40,409 113,86,28,871
Decrease in working
Capital 17,83,88,462 17,83,88,462

TOTAL 113,86,28,871 113,86,28,871 25,89,69,993 25,89,69,993

2
 FUND FLOW STAMENT

(For the year 2017-2018)

(Statement of sources & Applications of Funds)

Sources Amount in Rs Application Amount in Rs

Profit from Business 93,49,32,515 Redemption of shares at _

Operations par(Discount/premium)

Redemption of debentures
_
Issue of share capital at
---
par(Discount/Premium
Payment of unsecured loans 2,50,73,000
)

Payment of secures loans 1,49,42,845

Provision for tax & dividend 30,44,55,338

Issue of Debentures ---
Purchase of fixed assets 56,57,18,65
(Discount/Premium)

Purchase of investment 13,62,06,281

Sales of other fixed 3,45,73,641

assets

13,69,077
Dividend received

7,55,20,888
Deferred tax liabilities

104,63,96,121 104,63,96,121

3
 SOURCES AMOUNT

profit from business operations 934932515

sales of other fixed assets 34573641

Dividend received 1369077

Deferred tax liabilities 75520888

1000000000
900000000
800000000
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
ns ts d es
tio as
se eive iliti
a ec b
er ed r lia
op fix d x
es
s r en ta
he id
re
d
sin ot Di
v r
bu of fe
m les De
ro sa
tf
r ofi
p

Interpretation:
In the year 2017-2018 the profits from business operations is Rs934932515, sales of
other fixed assets is Rs34573641, The amount of dividend received is Rs1369077 and
deferred tax liability is 75520888.

4
 STATEMENT OF CHANGES IN WORKING CAPITAL

For the year 2018-2019

Particulars 2013 2014 Changes in working capital

(Rs) (Rs) Increase Decrease
Current Assets:
Inventories 135,93,30,982 132,75,07,945 ---- 3,18,23,037
Sundry debtors 10,80,11,642 11,45,09,441 64,97,799 ----

Cash and bank balances 6,81,47,393 17,67,30,095 10,85,82,702 ----

Other current assets 15,13,709 28,08,246 12,94,537 ----
Loans and advances 46,65,45,285 14,02,58,734 ---- 32,62,86,551
Total current assets 200,35,49,011 176,18,14,461
Current liabilities and
Provisions:
Liabilities 85,25,17,150 116,87,78,350 ---- 31,62,61,200
Provisions 1,24,02,990 1,56,15,751 --- 32,12,761
Total current liabilities
And provisions 86,49,20,140 118,43,94,101

Net working capital:

(C.A-C.L) 113,86,28,871 57,74,20,360
Decrease in working
Capital 56,12,08,511 56,12,08,511

TOTAL 113,86,28,871 113,86,28,871 67,75,83,549 67,75,83,549

5
 FUND FLOW STAMENT

(For the year 2018-2019)

(Statement of sources & Applications of Funds)

Sources Amount in Rs Application Amount in Rs

Profit from Business 14,94,68,510 Redemption of shares at ---

Operations par(Discount/premium)
---
Issue of share capital at Redemption of debentures ---
par(Discount/Premium
Payment of unsecured loans 3,97,00,000
) ---
Payment of secures loans 8,78,,72,802
Issue of Debentures

Provision for tax & dividend 12,92,87,304

(Discount/Premium)
76,16,243
Purchase of fixed assets 23,33,14,409
Sales of other fixed

Purchase of investment 8,85,39,586

assets
36,76,768
Dividend received
4,49,43,218
Deferred tax liabilities
24,36,98,372
Decreasing working
capital
12,93,10,990
Sale of investment

57,87,14,101 57,87,14,101

6
 SOURCES AMOUNT

Profit from business operations 149468510

Sales of other fixed assets 7616243

Dividend received 3676768

Deferred tax liabilities 44943218

Decreasing working capital 243698372

Sale of investment 129310990

300000000
250000000
200000000
150000000
100000000
50000000
0
NS TS ED IES IES EN
T
TIO SSE EIV ILIT ILIT M
A C B B T
RA ED RE LIA LIA ES
PE ND
V
O FIX TA
X
TA
X
FI
N
ESS ER IDE O
TH DI
V ED G LE
SIN ER SIN A
BU FO FF
CR
E S
M ES
O DE DE
RO L
S F SA
O FIT
PR

Interpretation:
In the year 2018-2019 the profit from business operations is Rs149468510, sales of
other fixed assets are Rs7616243, The amount of dividend received isRs3676768, deferred
tax liability is Rs 44943218, Decreasing working capital is Rs243698372 and sale of
investment is Rs129310990.

7
 STATEMENT OF CHANGES IN WORKING CAPITAL

For the year 2019-2020

Particulars 2014 2015 Changes in working capital

(Rs) (Rs) Increase Decrease
Current Assets:
Inventories 132,75,07,945 126,77,78,839 ---- 5,97,29,106
Sundry debtors 11,45,09,441 6,09,19,428 ---- 5,35,90,013
Cash and bank balances 17,67,30,095 20,84,05,389 3,16,75,294 ----
Other current assets 28,08,246 23,12,881 ---- 4,95,365
Loans and advances 14,02,58,734 20,23,86,069 6,21,27,335 -----
Total current assets 176,18,14,461 174,18,02,606
Current liabilities and
Provisions:
Liabilities 116,87,78,350 73,47,84,951 43,39,93,399 -----
Provisions 1,56,15,751 4,58,02,178 ----- 3,01,86,427
Total current liabilities
And provisions 118,43,94,101 78,05,87,129

Net working capital:

(C.A-C.L) 57,74,20,360 96,12,15,477
Increase in working 8,37,95,117 ---- 38,37,95,117
Capital

TOTAL 96,12,15,477 96,12,15,477 52,77,96,028 52,77,96,028

8
 FUND FLOW STAMENT

(For the year 2019-2020)

(Statement of sources & Applications of Funds)

Sources Amount in Rs Application Amount in Rs

Profit from Business 4,19,75,675 Redemption of shares at ---

Operations par(Discount/premium)

Payment of secured loans 24,52,09,679 Redemption of debentures ---

Unsecured loans 40,78,000 Deferred tax liability 33,50,790

Sales of other fixed 34,31,604 Provision for tax & dividend 46,39,99,615

assets Purchase of fixed assets 8,70,94,809

Dividend received 37,80,090 Purchase of investment 11,13,209

Sale of investment 64,08,78,492 Increasing working capital 38,37,95,117

93,08,78,492 93,93,53,540

9
 SOURCES AMOUNT

Profit from business operations 41975675

Payment of secured loans 245209679

Unsecured loans 407800

Sales of other fixed assets 3431604

Dividend received 3780090

Sales of investment 640878492

700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
ns s s ts ed t
tio an an se en
a lo lo as ceiv tm
er ed ed d re es
op cur ur fixe d inv
es
s se se
c
er den of
of i
sin t Un oth Di
v la es
bu en of S
m ym la es
t fr o Pa S
ofi
Pr

Interpretation:
In the year 2019-2020 the profit from business operations is Rs41975675, payment of
secured loans are Rs245209679, unsecured loans are Rs4078000, sales of other fixed assets
are Rs3431604, The amount of dividend received is Rs3780090 , and sale of investment is
Rs640878492.

10
 STATEMENT OF CHANGES IN WORKING CAPITAL

For the year 2020-2021

Particulars 2015 2016 Changes in working capital

(Rs) (Rs) Increase Decrease
Current Assets:
Inventories 126,77,78,839 128,45,84,247 1,68,05,408 -----
Sundry debtors 6,09,19,428 3,62,65,260 ---- 2,46,54,168
Cash and bank balances 20,84,05,389 5,78,68,827 ---- 15,05,36,562
Other current assets 23,12,881 18,15,538 ---- 4,97,343
Loans and advances 20,23,86,069 21,44,20,338 1,20,34,269 ----
Total current assets 174,18,02,606 1,59,49,54,210
Current liabilities and
Provisions:
Liabilities 73,47,84,951 59,53,89,436 13,93,95,515 ----
Provisions 1,56,15,751 4,58,02,178 ----- 3,01,86,427
Total current liabilities
And provisions 78,05,87,129 61,56,81,689

Net working capital:

(C.A-C.L) 96,12,15,477 97,92,72,512
Increase in working 1,80,57,035 ---- 1,80,57,035
Capital

TOTAL 97,92,72,512 97,92,72,512 19,37,45,108 19,37,45,108

11
 FUND FLOW STAMENT

(For the year 2020-2021)

(Statement of sources & Applications of Funds)

Sources Amount in Rs Application Amount in Rs

Profit from Business 31,51,64,361 Redemption of shares at ---

Operations par(Discount/premium)

Unsecured loans 5,57,59,000 Redemption of debentures ---

Issue of share capital at --- Payment of secured loans 16,42,09,600

par(Discount/Premium)
Deferred tax liability 1,70,220
Issue of Debentures
--- Provision for tax & 6,67,52,681
(Discount/Premium) dividend

Sales of other fixed Purchase of fixed assets 3,45,84,462

1,86,07,209
assets Purchase of investment 11,25,95,453

Dividend received Increasing working capital 1,80,57,035

68,38,881

39,63,69,451 39,63,69,451

12
 SOURCES AMOUNT
Profit from business operations 315164361
Unsecured loans 55759000
Sales of other fixed assets 18607209

Dividend received 6838881

350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
Profit from Unsecured loans Sales of other fixed Dividend received
business opera- assets
tions

Interpretation:
In the year 2020-2021 the profit from business operations is Rs315164361, unsecured
loans are Rs55759000, sales of other fixed assets are Rs18607209, and the amount of
dividend received is Rs6838881.

13
 STATEMENT OF CHANGES IN WORKING CAPITAL

For the year 2021-2022

Particulars 2016 2017 Changes in working capital

(Rs) (Rs) Increase Decrease

Current Assets:
Inventories 128,45,84,247 110,98,19,602 ----- 17,47,64,645
Sundry debtors 3,62,65,260 5,05,57,226 1,42,91,966 ------
Cash and bank balances 5,78,68,827 5,35,11,251 ---- 43,57,576
Other current assets 18,15,538 52,89,046 34,73,508 -------
Loans and advances 21,44,20,338 30,25,24,380 8,81,04,042 --------
Total current assets 1,59,49,54,210 152,17,01,505
Current liabilities and
Provisions:
Liabilities & Provisions 59,53,89,436 57,67,90,627 1,85,98,764

Total current liabilities

And provisions 59,53,89,436 57,67,90,627

Net working capital:

(C.A-C.L) 99,95,64,774 94,49,10,833
Decrease in working 5,46,53,941 5,46,53,941
Capital

TOTAL 99,95,64,774 99,95,64,774 17,91,22,221 17,91,22,221

14
 FUND FLOW STAMENT

(For the year 2021-2022)

(Statement of sources & Applications of Funds)

Sources Amount in Rs Application Amount in Rs

Profit from Business Operations 31,48,56,704 Redemption of shares at ---

par(Discount/premium)
Issue of share capital at ---
par(Discount/Premium) Redemption of debentures ---

Issue of Debentures Payment of debentures 35,44,84,462

__
(Discount/Premium) Purchase of fixed assets 16,23,09,600

Unsecured loans 3,33,16,000 Taxes paid 67,86,53,107

Sales of other fixed 1,70,85,000 Purchase of investment 12,74,05,660

assets

decrease in working capital 5,46,53,941

Other income 4,10,25,697

47,09,37,342 47,09,37,342

15
 SOURCES AMOUNT
Profit from business operations 314856704
Unsecured loans 33316000
Sales of other fixed assets 17085000
Decrease in working capital 54653941
Other income 41025697

350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
Profit from Unsecured Sales of other Decrease in Other income
business op- loans fixed assets working capital
erations

Interpretation:
In the year 2021-2022 the profit from business operations is Rs314856704, unsecured
loans are Rs33316000, sales of other fixed assets are Rs17085000, the amount of decrease in
working capital Rs54653941and other income is Rs41025697.

16
CHAPTER-V

FINDINGS

SUGGESTIONS
CONCLUSION

17
 FINDINGS

 It is clear that the table of current ratio that Hero motors ltd has been enjoying
satisfactory position 2017-2018. It has been observed that the current ratio is above
the bench mark.

 A ratio 1:1 has been suggested as the bench mark for quick ratio. The liquidity ratio
and absolutely liquidity ratio if the company is satisfactory provided the companies
drawing limits with the banks in cash credits accounts etc are considered, this is
because while considering liquidity assets this drawing right with bank also provided
liquidity.

 Debt equity ratio if Hero motors ltd is highly satisfactory and it is also maintaining it
at consistent rate it is better for the company to continue the same position.

 The ratio of return on total assets as decreased floutingly there is a negative return
ratio on 2017. Sales and profits the entire profitability ratios ate satisfactory.

 From the year 2017-2018 the debtor’s turnover ratio in Hero motors ltd is highly
satisfactory. This is due to implementation of cash & carries policy by the company.

18
 SUGGESTIONS

 It is advisable to maintain the same growth in sales in future periods.

 By applying the various inventories maintenance methods try to reduce the level of

inventories by which the company will get sufficient financial resources to repay the

huge amount of its sufficient liabilities.

 As the government decides about the price for hero motors ltd it would be suggestible

to maintain sufficient cash reserves with the Organization to maintain stability in its

operations if low price is fixed.

 Debt collection performance of the company may further be improved.

 The debtor’s turnover ratio is increasing year by the year and should be continued.

19
 CONCLUSION

The Andhra hero motors ltd’s ltd sources, and applications are maintained very well which
shows a good improvement in liquidity position. The company can maintain and improve the
same type of utilization of funds within the organization. By observing the sources and
applications, it is clear that the company is actively increasing or standardizing its operations.
The operational efficiency of the company was increased. The company maintains the good
working capital. It must be useful to develop the organization very effectively.

20
 BIBLIOGRAPHY

 KHAN&JAIN. P.K “THEORY AND PROBLEMS OF FINANCIAL

MANAGEMENT”. TATA.MC. GRAHIL, NEW DELHI 2004.

 KULKARNI P.V, “FINANCIAL MANAGEMENT”, HIMALAYA PUBLISHING

HOUSE, MUMBAI 1999.

 PANDEY. I.M, “FINANCIAL MANAGEMENT”, VIKAS PUBLISHING HOUSE

PVT.LTD, NEW DELHI, 2005.

 PRASANNA CHANDRA, “FINANCIAL MANAGEMEN”, TATA MC.

GRAWHILL, NEW DELHI, 2002.

 SHARMA R.K, “MANAGEMENT ACCOUNTANCY PRINCIPLESW AND

PRACTISE”, KALYANI PUBLISHERS, NEW DELHI, 1999.

Websites

www.google.com

www.andhrahero motors ltdltd.com

21
 BALANCE SHEET AS ON 31ST MARCH 2017-2018

SCHEDULE As at 31st As at 31st

March 2017 March 2018
SOURCES OF FUNDS
Shareholder’s funds
Share capital A 11,33,85,050 11,33,85,050
Reserves and surplus B 1,27,84,18,716 90,12,44,947
1,39,18,03,766 1,01,46,29,997
Loan funds
Secured loans C 28,15,50,102 29,64,92,947
Unsecured loans D 21,96,22,000 24,46,95,000
50,11,72,102 54,11,87,947
Deferred tax liability
Deferred tax liability 25,03,97,136 20,99,52,818
Less:- Deferred tax Assets 3,81,11,364 7,31,87,934
21,22,85,772 13,67,64,884
TOTAL 2,10,52,61,640 1,69,25,82,828
APPLICATION OF FUNDS
Fixed assets
Gross block E 1,85,31,65,250 1,32,20,20,234
Less: Depreciation 50,19,41,957 44,14,75,638
Net block 1,35,12,23,923 88,05,44,596
Capital working progress 4,58,43,001 16,43,32,340
1,39,70,66,294 1,04,48,76,936
Investments F 1,63,63,918 1,44,30,960
Current assets, loan and advances
Inventories G 1,35,93,30,982 1,43,18,24,825
Sundry debtors H 10,80,11,642 11,21,33,122
Cash and bank balance I 6,81,47,393 5,02,62,789
Other current assets J 15,13,709 10,21,849
Loans and advances K 46,65,45,285 38,99,83,272
200,35,49,011 1,98,52,25,857
Less: current liabilities 131,17,17,583 1,35,19,50,925
Current liabilities
Provisions
Net current assets 69,18,31,428 63,32,74,932
TOTAL 2,10,52,61,640 1,69,25,82,828

22
 BALANCE SHEET AS ON 31ST MARCH 2018-2019

SCHEDULE As at 31st As at 31st

March 2018 March 2019
SOURCES OF FUNDS
Shareholder’s funds
Share capital A 11,33,85,050
Reserves and surplus B 1,27,84,18,716
1,39,18,03,766 1,01,46,29,997
Loan funds
Secured loans C 28,15,50,102 29,64,92,947
Unsecured loans D 21,96,22,000 24,46,95,000
50,11,72,102 54,11,87,947
Deferred tax liability
Deferred tax liability 25,03,97,136 20,99,52,818
Less:- Deferred tax Assets 3,81,11,364 7,31,87,934
21,22,85,772 13,67,64,884
TOTAL 2,10,52,61,640 1,69,25,82,828
APPLICATION OF FUNDS
Fixed assets
Gross block E 1,85,31,65,250 1,32,20,20,234
Less: Depreciation 50,19,41,957 44,14,75,638
Net block 1,35,12,23,923 88,05,44,596
Capital working progress 4,58,43,001 16,43,32,340
1,39,70,66,294 1,04,48,76,936
Investments F 1,63,63,918 1,44,30,960
Current assets, loan and advances
Inventories G 1,35,93,30,982 1,43,18,24,825
Sundry debtors H 10,80,11,642 11,21,33,122
Cash and bank balance I 6,81,47,393 5,02,62,789
Other current assets J 15,13,709 10,21,849
Loans and advances K 46,65,45,285 38,99,83,272
200,35,49,011 1,98,52,25,857
Less: current liabilities 131,17,17,583 1,35,19,50,925
Current liabilities
Provisions
Net current assets 69,18,31,428 63,32,74,932
TOTAL 2,10,52,61,640 1,69,25,82,828

23
 BALANCE SHEET AS ON 31ST MARCH 2019-2020

SCHEDULE As at 31st As at 31st

March 2019 March 2020
SOURCES OF FUNDS
Shareholder’s funds
Share capital A 11,33,85,050 11,33,85,050
Reserves and surplus B 1,44,75,96,744 1,27,84,18,716
1,56,09,81,794 1,39,18,03,766
Loan funds
Secured loans C 19,36,77,300 28,15,50,102
Unsecured loans D 17,99,22,000 21,96,22,000
37,35,99,300 50,11,72,102
Deferred tax liability
Deferred tax liability 29,58,16,139 25,03,97,136
Less:- Deferred tax Assets 3,85,87,149 3,81,11,364
25,72,28,990 21,22,85,772
TOTAL 2,19,18,10,084 2,10,52,61,640
APPLICATION OF FUNDS
Fixed assets
Gross block E 2,07,88,63,416 1,85,31,65,250
Less: Depreciation 59,75,83,948 50,19,41,957
Net block 1,48,12,79,468 1,35,12,23,923
Capital working progress 7,28,45,659 4,58,43,001
1,55,41,25,127 1,39,70,66,294
Investments F 12,65,92,017 1,63,63,918
Current assets, loan and advances
Inventories G 1,32,75,07,945 1,35,93,30,982
Sundry debtors H 11,45,09,441 10,80,11,642
Cash and bank balance I 17,67,30,095 6,81,47,393
Other current assets J 28,08,246 15,13,709
Loans and advances K 14,02,58,734 46,65,45,285
1,76,18,14,461 200,35,49,011
Less: current liabilities L 131,17,17,583
Current liabilities 1,16,87,78,350
Provisions 8,19,43,171
Net current assets 51,10,92,940 69,18,31,428
TOTAL 2,19,18,10,084 2,10,52,61,640

24
 BALANCE SHEET AS ON 31ST MARCH 2020-2021

SCHEDULE As at 31st As at 31st

March 2020 March 2021
SOURCES OF FUNDS
Shareholder’s funds
Share capital A 11,33,85,050 11,33,85,050
Reserves and surplus B 145,46,49,267 143,42,19,392
156,80,34,317 154,76,04,442
Loan funds
Secured loans C 27,46,77,379 43,88,86,979
Unsecured loans D 23,97,59,000 18,40,00,000
51,44,36,379 62,28,86,979
Deferred tax liability
Deferred tax liability 28,78,93,073 30,13,40,523
Less:- Deferred tax Assets 3,41,85,093 4,74,62,323
25,37,07,980 25,38,78,200
TOTAL 233,61,78,676 242,43,69,621
APPLICATION OF FUNDS
Fixed assets
Gross block E 217,85,03,874 216,25,26,621
Less: Depreciation 79,66,49,926 70,11,93,785
Net block 138,18,53,948 146,13,32,836
Capital working progress 1,40,65,017 1,44,95,594
139,59,18,965 147,58,28,430
Investments F 5,38,45,587 5,36,53,134
Current assets, loan and advances
Inventories G 128,45,84,247 126,77,78,839
Sundry debtors H 3,62,65,260 6,09,19,428
Cash and bank balance I 5,78,68,827 20,84,05,389
Other current assets J 18,15,538 23,12,881
Loans and advances K 21,44,20,338 20,23,86,069
159,49,54,210 174,18,02,606
Less: current liabilities L
Current liabilities 59,53,89,436 73,47,84,951
Provisions 11,31,50,650 11,21,29,598
Net current assets 88,64,14,124 89,48,88,057
TOTAL 233,61,78,674 242,43,69,621

25
 BALANCE SHEET AS ON 31ST MARCH 2021-2022

SCHEDULE As at 31st As at 31st

March 2021 March 2022 a
SOURCES OF FUNDS
Shareholder’s funds
Share capital A 11,38,85,050 11,33,85,050
Reserves and surplus B 159,25,95,072 144,75,96,744
170,59,80,122 156,09,81,794
Loan funds
Secured loans C 15,08,00,583 27,46,77,379
Unsecured loans D 27,30,75,000 23,97,59,000
42,38,75,583 51,44,36,379
Deferred tax liability
Deferred tax liability 27,33,87,498 28,78,93,073
Less:- deferred tax Assets 3,55,22,337 3,41,85,093
23,78,65,161 25,37,07,980
TOTAL 236,77,20,866 233,61,78,676
APPLICATION OF FUNDS
1.Fixed assets
Gross block E 224,42,54,858 217,85,03,874
Less: Deprecation 89,19,10,077 79,66,49,926
Net block 135,23,44,781 138,18,53,948
Capital working progress 1,74,77,285 1,40,65,017
136,98,22,066 139,59,18,965
Investments F 18,95,22,066 5,38,45,587
Current assets, loans and
advances
Inventories G 110,98,19,602 128,45,84,247
Sundry Debtors H 5,05,57,226 3,62,65,260
Cash and bank balances I 5,35,11,251 5,78,68,827
Other current assets J 52,89,046 18,15,538
Loans and advances K 30,25,24,380 21,44,20,338
152,17,01,505 159,49,54,210
Less current liabilities and
provisions L
Liabilities 57,67,90,672 59,53,89,436
Provisions 13,66,05,225 11,31,50,650
Net current assets 80,83,05,608 88,64,14,124
TOTAL 236,77,20,866 233,61,78,674

26