BML Munjal University

Master of Business Administration

Summer Internship Report

ON
"ACCOUNTING AND FINANCIAL PRACTICES IN HERO FUTURE
ENERGIES PRIVATE LIMITED"

Submitted by:
Jitin Mathew

Dated: 17-07-2021

1|Page
 A REPORT ON

Accounting and Financial Practices in Hero Future Energies Private

Limited

Submitted By:
Jitin Mathew
Roll No.: 200A3010028
MBA (2020-2022)

Name of the Company:

Hero Future Energies Private Limited

Company Guide:

Mr. Anish Mishra

Senior Manager
(Hero Future Energies Private Limited)

Faculty Guide:

Dr. Anusree Paul

Professor Economics
School of Management
(BML Munjal University)

2|Page
3|Page
 DECLARATION

Jitin Mathew Date: 17-07-2021

Roll No.: 200A3010028
BML Munjal University

4|Page
5|Page
 CERTIFICATE

Dr. Anusree Paul

Professor: Economic
School Of Management
BML Munjal University

6|Page
 Acknowledgment

7|Page
8|Page
9|Page
 Executive Summary

The world economy has been growing at a rapid pace, necessitating the development of renewable
energy sources. Every country in the world is trying to minimize the burden of fossil fuel-generated
electricity and transition to green, sustainable energy.

India is a booming country with a large population; thus, the need for energy is growing. Despite the
implementation of progressive measures, India's power sector continues to underperform. Power
shortages, higher tariffs, coal shortages, and reliance on imported fuel are rising. At the same time, the
distribution system's poor health continues to restrict investment inflows, posing a growing risk for
India's power sector.

India's power demand is expected to exceed 300 GW a few years sooner than most forecasts. Meeting
this demand will necessitate a five- to ten-fold rise in capacity expansion rates. With India's rising
power consumption, there is a huge opportunity for investment in the country's power industry and
renewable energy generation.

My Summer Internship paper is titled "Financial and Accounting Practices in Hero Future Energies
Private Limited," It focuses on Hero Future Energies, a Hero Group effort, industry analysis, product
range, market share, and other topics related to the company. In addition, the report contains a
subjective review of the company's financials, financial and accounting procedures, and performance
in the Indian Renewable Industry.

The research also examines the top 10 renewable energy firms in India and compares their performance
to HFE.

The project report concludes with the analysis' results and suggestions and work completed throughout
the internship term.

10 | P a g e
 TABLE OF CONTENTS

Joining letter………. …………………………………………………………………………………. I

Declaration.…………………………………………………………………………………………....II
Internship Completion certificate…………………………………………………………………….III
Certificate…………………………………………………………………………………………….IV
Acknowledgment…………………………...………………...…………………………………….....V
List of Tables and Illustrations...……………………………………………………………………..VI
Executive Summary………………………………...………………………………….....................VII

Chapter 1. Company Profile

1.1 Introduction………………………………………………………………………………13
1.2 Company's vision and mission statement….……………………………………………..15
1.3 Organization structure and size…………………………..................................................16
1.4 Product Range ………...…………………………………………………………………18
1.5 Market share and position of the company in the industry…...………………………….22
Chapter 2. Industry Analysis

2.1 About the Industry………………………………………………………………..............23

2.2 Business Model…………………………………………………………………..............25
2.3 POPs and PODs…………………………………………………………………………..28
2.4 SWOT Analysis…………………………………………………………………………..29
2.5 Competitors………………………………………………………………………………30
Chapter 3. Data collection and presentation

3.1 Financial Data Analysis of Hero Future Energies Pvt. Ltd.……………………………...34

Chapter 4. Deliverable's analysis and Concepts Discussion

4.1 Job description……………………………………………………………………………57

4.2 Concept Overview………………………………………………………………………..58

4.2.1 Vouching
4.2.2 Preparing books of accounts in Tally

11 | P a g e
 4.2.3 Maintenance of accounts/ bookkeeping.
4.2.4 Intangible Assets
4.2.5 Preparation of application for an A2 form
4.2.6 Bank Reconciliation statement
4.2.7 Taxation
4.2.8 Theoretical learning of different types of Taxation and GST
4.2.9 TDS return preparation.
4.3 Description of the task and accomplishment……………………………………………66

Chapter 5. Conclusions and Learnings

5.1 Conclusion ………………………………………….........................................................68

5.2 Learnings…………………………………………………………………………………68
Bibliography.………………………………………………………………………………..............69

12 | P a g e
 Chapter 1
Profile of the Firm/ Company
1.1 Introduction

Basic Information

Table 1.1 basic info

13 | P a g e
HFE is India's leading Independent Power Producer (IPP) with operating plants in the wind, grid-

connected solar, and rooftop solar. The company is ambitious about tapping into the incredible

HFE has been operating nationally and internationally with its corporate offices in India, Southeast

Asia, UK, Europe, America, and Africa.

Figure1.1: Total branches of HFE

In India, the HFE has a total of 4 branches, of which two are in New Delhi, Chennai, and Bangalore.

The Addresses of these offices can be retrieved from the below-mentioned website.

https://www.herofutureenergies.com/

14 | P a g e
15 | P a g e
1.3 Organisation Structure and size

Table 1.3 Organisation Structure and size

16 | P a g e
consultation. Stakeholders' critical concerns that may impact business ecosystems are captured and
deliberated at the top management level.

The board oversees the functioning of sub-committees. The Board members are acquainted with the
Company's sustainability performance requirement and the current industry trends related to economic,
social, and environmental topics through participation in different forums and regular updates from
the CEO.

The management team of HFE successfully operates the organization, and they are responsible for the
development and execution of strategies for the future of the HFE.

During the internship period in Hero Future Energies Private Limited, I got the chance to work in the
finance and accounts department. In the Accounts and finance department of HFE, several divisions
took care of various financial activities. The accounting and finance department used to report to the
managing director Mr. Rahul Munjal regularly. The communication with the director was done through
the department managers. Mr. Anish Mishra was the Senior Manager to whom I was required to report
weekly.

1.4 Products and Services

Hero Future Energies has constantly been putting efforts to trace new technologies with the help of
their Centralised Monitoring system. With many excellent and innovative engineering practices, HFE
is continuously updating itself and tries to remain ahead of time. The current product Portfolio of HFE
includes 1.2 GW of wind and solar power, and an additional 1.5GW is under construction. HFE has a
2024 growth target of 5GW of installed and operating capacity.

Hero Future Energies Private Limited state-of-the-art central monitoring system has been helping the
organization in acing performance management capabilities as:

17 | P a g e
 • The projects can be tracked in real-time.
• Intricate details such as the wind speed, the reactive power, nacelle direction, pitch
rotation, etc., can be monitored.
• Power generation prediction, as well as analysis, can be done.
• It facilitates system analysis and inventory control.

Table 1.4 product portfolio

1. Hero Future Energies Private Limited Private Limited Wind Power:

The company has created an asset base of ~ 1GW of operational and under construction utility-
scale wind projects. HFE's journey from an Independent Power Producer in renewable energy
to becoming a cleantech entity has invested extensively in the state-of-the-art central
monitoring system, which aces our performance management capabilities. Our strong sense of
design, a pool of talented engineering professionals, and adherence to HSE norms contribute
majorly to this success.

18 | P a g e
 figure 1.4.1 wind power

2. Hero Future Energies Private Limited Private Limited Grid Connected Solar:

The company has created an asset base of ~ 1.5GW of operational and under construction
utility-scale solar projects. HFE's complete engineering design process is driven through SOPs.
The company's in-house design team includes engineers and experts in the solar, module,
geotechnical, structural, EHV system, and Central Monitoring System (CMS). HFE's
impeccable design philosophy, best engineering practices, and faster adoption of futuristic
technologies ensure that the company remains a leading player in the renewable Industry.

figure 1.4.2 solar grid

3. Hero Future Energies Private Limited Rooftop Solar:

19 | P a g e
 Making the most of technologies like rooftop and utility-scale solar and wind energies, Hero
Future Energies Private Limited (HFE), the renewable arm of the Hero Group, strives towards
creating a sustainable environment for the future. Helping to reduce operational costs and
carbon footprints, rooftop solar solutions manage space constraints by installing solar panels
on your roof.

figure 1.4.3 Rooftop solar

4. Hero Future Energies Private Limited Private Limited Energy Cube:

With respect to energy storage applications, we specifically focus on Battery Energy Storage
owing to its capability of fast response (milliseconds), minimal space requirement, modularity,
and rapidly falling prices that opens a huge market for the application of Battery Energy
Storage at utility-scale, behind the meter and in micro-grids. Hero Future Energies Private
Limited Private Limited provides solutions both in the CAPEX model and in the OPEX model
for Battery Energy Storage Solutions.

figure 1.4.4 Energy Cube

20 | P a g e
1.5 Market Share and position of Hero Future Energies Private Limited in the
renewable energy industry

figure 1.5 Market Share

21 | P a g e
 Chapter 2

Industry Analysis

2.1 About the Renewable Energy Industry

22 | P a g e
energy firm, India ranked 3rd globally in its renewable energy investments and planning in the year
2020.

Fig: 2.1
Indian
Renewable
Energy
Industry

23 | P a g e
2.2 The Business Model

Fig: 2.2 Business Model Canvas

2.3 Practices in functional areas.

• Vendors and Suppliers

HFE's vendors and suppliers play a major role in ensuring correct and sustainable operations are being
followed in the plants. HFE engages with its vendors and suppliers frequently through the onboarding
process and conducts site visits to equipment and spare parts manufacturing facilities for compliance
monitoring. HFE has installed an IT-enabled payment system that helps to process the payment
correctly and timely so that no delay is caused in the process and the vendors remain satisfied.

• Government/Regulators

HFE operates in a highly regulated business and needs to continuously engage with the central and
state governments and central and state electricity regulatory commissions to ensure that the businesses

24 | P a g e
are compliant with the existing regulations and standards. Periodic reports are submitted on
compliance, financials, and CSR initiatives to the Government authorities.

• Employees/Contractual workforce

• Investors

HFE is focused on creating long-term value with the investors by running all the capacities efficiently
and profitably. HFE has been investing in capacities as and when attractive expansion opportunities
arrive; HFE has successfully maintained discipline in capital allocation. HFE engages with our
investors quarterly and need-based to apprise them of developments related to the Company's
performance, growth opportunities, balance sheet management, and sustainability.

• Ethics & Integrity

Hero Future Energies is committed to carrying out business fairly, honestly, and openly wherever other
Group members and HFE carries on business in the world. All HFE's officers and employees are
expected to reflect the same culture of professionalism and integrity in their dealings on behalf of the
Group and assist the Company in implementing and enforcing systems to prevent any inappropriate
activities across the Group's business. The Company does not make donations or contributions,
whether in cash or kind, to support any political parties or candidates. Any direct or indirect
contribution by the Company to any political party, committee, or candidate for public office is strictly
forbidden.

• Enterprise risk management

Effective risk management is fundamental to achieving the Hero Future Energies' (herein referred to
as HFE or Group) strategic objectives. HFE has established the Enterprise Risk Management (ERM)
system as a comprehensive set of components that provide the foundations and organizational

25 | P a g e
arrangements for designing, implementing, monitoring, reviewing, and continually improving
enterprise risk management throughout the organization. The ERM governance structure has been
developed keeping in mind the organization structure of HFE to ensure seamless integration of
enterprise risk management process with the existing risk monitor and review practices across HFE to
ensure smooth functioning. The board has delegated the Audit Committee the responsibility to assist
it in framing, guiding, monitoring, and to review the ERM Policy and Framework. HFE has
additionally constituted the Enterprise Risk Management Steering Committee (ERMSC) and the
Enterprise Risk Management Working Group (ERMWG) to support the Audit Committee in risk
governance and oversight. The ERMSC and ERMWG hold regular meetings to review and discuss the
risk management progress, provide a continuous pulse of the business environment, and monitor
changes.

• The sustainability approach of Hero Future Energies (HFE)

HFE derives its sustainability approach from its vision on Planet Positive Power. Providing cleantech
solutions as its core, HFE constantly strives to contribute to sustainable development through
delivering safe working conditions across all project sites and offices. It aims for holistic community
development across the project sites by engaging external stakeholders and, in the process, inspires its
employees to address HFE's focus areas, such as social capital and human capital. As it envisions a
climate-positive company, HFE continuously looks for emission reductions and environmentally
sound ways of managing its assets. The representation at the center of the schematic diagram above is
the means of facilitating the strategic actions required for driving innovation and demonstrating
leadership.

Fig: 2.3 Sustainability approach

26 | P a g e
2.3 POP and POD's
Renewable energy is a massive industry. However, because the sector is still expanding, the equipment
and methods utilised to create energy are quite similar. It is expected that a new invention and
innovation will generate green energy soon.

The point of parity of Hero Future Energies is it primarily generates electricity from two sources: wind
and solar, and the firm is always developing innovative ways to create energy from renewable
resources.

The point of disparity for hero future energy is the advantage of being a Hero group firm, they have a
strong brand name and brand awareness, which helps them stand out in the renewable energy industry.
The company's service quality and engineering design are both cutting-edge and highly efficient,
allowing it to deliver superior services to customers and maintain market dominance.

2.4 SWOT Analysis

27 | P a g e
 • Strong Global Presence: After the establishment in the year 2012, HFE has been successful
in expanding themselves globally with their corporate offices in London, Singapore, Vietnam,
and India
• Large Product Portfolio: Not only does Hero Future Energies Private Limited provide solar
rooftops, but it is also moving rapidly alongside current market trends as well. It has made its
first venture into the wind energy market and Solar energy storage cube and has successfully
provided renewable energy resources to the southern part of India.

Weaknesses

Despite its strong domestic presence and large market, Hero Future Energies Private Limited still has
some weaknesses that can threaten its growth and future.

• Growing demand for energy: As the overall population is increasing rapidly, it has caused
more energy and has created a sudden rise in demand for renewable energy. There is a lot of
research still to be done in the production of renewable energy to increase the capacity of
production, which causes a threat for the company.

• Global Market: with the emerging need for renewable energy, the global market has many
new entrants. This has created market share competition as the new entrants have better
technology and are more efficient and cost-effective; due to this reason, these companies are
capturing the global market.

• Conventional Service Quality: Due to the emergency of new technology and players, the
overall service quality for Hero Future Energies Private Limited falls as the new technologies
are more efficient and cost-effective, which has created a major challenge for HFE. According
to the study on service quality of renewable energy producers, ReNew Energy and Adani
power, one of its closest competitors, had better overall service and appeal.

• The rising cost of Electric grids: with the rise in consumers and competitors in the renewable
energy industry, there has been increasing demand for the electric grid, and this has caused an
increase in the overall price of grids.

28 | P a g e
 Opportunities

Threats

29 | P a g e
2.5 Competitors Analysis

30 | P a g e
31 | P a g e
32 | P a g e
 Table: 2.4 Competitors

33 | P a g e
 Chapter 3

Data collection and presentation

3.1 Financial Statement analysis of Hero's future Energies.

34 | P a g e
 Table: 3.1 IND-AS guidelines

35 | P a g e
 Ratio Analysis

1. Liquidity Ratio:

❖ Current Ratio = Current Assets / Current Liability

Year 2017 2018 2019 2020 2021

Current Ratio 1.81 2.01 1.91 2.02 2.06

Table 3.1.1: Current Ratio

Graphical Presentation:

CURRENT RATIO
2.10

2.05

2.00

1.95

1.90

1.85 Current Ratio

1.80

1.75

1.70

1.65
2017 2018 2019 2020 2021

Figure 3.1.1: Current Ratio

Interpretation:

36 | P a g e
 ❖ Working Capital= Current Assets – Current Liabilities

Year 2017 2018 2019 2020 2021

Working Capital 33938200000 45208700000 40040300000 43701300000 46752350000

Table 3.1.2: Working capital

Graphical Presentation:

WORKING CAPITAL
50000.00
Millions

45000.00
40000.00
35000.00
30000.00
25000.00
Working Capital
20000.00
15000.00
10000.00
5000.00
0.00
2017 2018 2019 2020 2021

Figure 3.1.2: Working Capital

Interpretation:

❖ Day's sales outstanding = 365/receivables turnover ratio

Year 2017 2018 2019 2020 2021

Days Sales 26.01 23.09 21.96 25.53 25.41
Outstanding

Table 3.1.3: DSO

37 | P a g e
 ❖ Days inventory outstanding = 365/inventory turnover ratio

Year 2017 2018 2019 2020 2021

Days Inventory 10.76 12.64 13.76 17.92 20.80
Outstanding

Table 3.1.4: DIO

❖ Day's payables outstanding = 365/payables turnover ratio

Year 2017 2018 2019 2020 2021

Days Payable 65.17 56.97 53.20 63.04 62.67
Outstanding
Table 3.1.5: DPO
❖ Cash conversion cycle = DSO + DIO – DPO

Year 2017 2018 2019 2020 2021

Cash Conversion -28.40 -21.25 -17.48 -19.59 -16.46
Cycle
Table 3.1.6: CCC
Graphical Presentation:

CASH CONVERSION CYCLE

0.00
2017 2018 2019 2020 2021
-5.00

-10.00

-15.00

-20.00

-25.00
Cash Conversion Cycle

-30.00

Figure 3.1.6: CCC

38 | P a g e
 Interpretation:

2. Assets Management/ Efficiency Ratio:

❖ Inventory Turnover= Net sales / Average Inventory

Year 2017 2018 2019 2020 2021

Inventory 33.92 28.87 26.52 20.37 17.55
Turnover Ratio
Table 3.2.1: Inventory turnover Ratio

Graphical Presentation:

INVENTORY TUROVER RATIO

40.00

35.00

30.00 Inventory Turover Ratio

25.00

20.00

15.00

10.00

5.00

0.00
2017 2018 2019 2020 2021

Figure 3.2.1: Inventory turnover Ratio

Interpretation:

39 | P a g e
 ❖ Total Assets Turnover ratio= Net sales / Average Total Assets

Year 2017 2018 2019 2020 2021

Assets Turnover 1.85 1.84 1.81 1.47 1.36
Ratio

Table 3.2.2: Total Assets turnover Ratio

Graphical Presentation:

ASSETS TURNOVER
2.00
Assets Turnover
1.80

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00
2017 2018 2019 2020 2021

Figure 3.2.2: Total Assets turnover Ratio

Interpretation:

40 | P a g e
 ❖ Days Sales Outstanding= 365 / Receivables turnover ratio

Year 2017 2018 2019 2020 2021

Days Sales 26.01 23.09 21.96 25.53 25.41
Outstanding

Table 3.2.3: Days Sales Outstanding

Graphical Presentation:

DAYS SALES OUTSTANDING

27.00
Days Sales Outstanding
26.00

25.00

24.00

23.00

22.00

21.00

20.00

19.00
2017 2018 2019 2020 2021

Figure 3.2.3: Days Sales Outstanding

Interpretation:

41 | P a g e
 ❖ Average Payment Period = Average Accounts Payable / (Total credit Purchase/365)

Year 2017 2018 2019 2020 2021

Average
Payment Period 67.06 58.95 53.51 61.01 60.25

Table 3.2.4: Average Payment Period

Graphical Presentation:

AVERAGE PAYMENT PERIOD

80.00
Average Payment Period
70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00
2017 2018 2019 2020 2021

Figure 3.2.4: Average Payment Period

Interpretation:

42 | P a g e
 3. Debt Management period:
❖ Debt to Assets Ratio = Total current liabilities / Total Assets

Year 2017 2018 2019 2020 2021

Debt to Assets 0.01 2.33 2.37 2.22 3.22
Ratio
Table 3.3.1: Debt to Assets Ratio

Graphical Presentation:

DEBT TO ASSETS RATIO

1.80%
Debt to Assets Ratio

1.60%

1.40%

1.20%

1.00%

0.80%

0.60%

0.40%

0.20%

0.00%
2017 2018 2019 2020 2021

Figure 3.3.1: Debt to Assets Ratio

Interpretation:

43 | P a g e
 ❖ Times Interest Earned Ratio = Earnings before Interest and tax / Interest Expenses

Year 2017 2018 2019 2020 2021

Times Interest 68.71 78.22 39.71 38.72 51.31
Earned Ratio

Table 3.3.2: Times Interest Earned

Graphical Presentation:

TIMES INTEREST EARNED

90.00 Times Interest earned

80.00

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00
2017 2018 2019 2020 2021

Figure 3.3.2: Times Interest Earned

Interpretation:

44 | P a g e
 4. Profitability Ratio:

❖ Net Profit Margin = Net Income / Net Sales

Year 2017 2018 2019 2020 2021

Net Profit 12.51% 11.66% 10.32% 12.67% 11.37%
Margin
Table 3.4.1: Net Profit Margin

Graphical Presentation:

NET PROFIT MARGIN

14.00% Net Profit Margin

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2017 2018 2019 2020 2021

Figure 3.4.1: Net Profit Margin

Interpretation:

45 | P a g e
 ❖ Gross Margin = Gross Profit / Revenue

Year 2017 2018 2019 2020 2021

Gross Margin 32.00% 30.96% 29.67% 30.99% 30.90%

Table 3.4.2: Gross Margin

Graphical Presentation:

GROSS MARGIN

32.50%
Gross Margin

32.00%

31.50%

31.00%

30.50%

30.00%

29.50%

29.00%

28.50%
2017 2018 2019 2020 2021

Figure 3.4.2: Gross Margin

Interpretation:

46 | P a g e
 ❖ Operating Margin = Operating Income / Revenue

Year 2017 2018 2019 2020 2021

Operating 14.45% 14.93% 13.12% 11.24% 13.43%
Margin
Table 3.4.3: Operating Margin

Graphical Presentation:

OPERATING MARGIN
16.00% Operating Margin

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2017 2018 2019 2020 2021

Figure 3.4.3: operating margin

Interpretation:

47 | P a g e
 ❖ ROE = Net income after tax / Average shareholder's equity

Year 2017 2018 2019 2020 2021

Return on 27.61% 27.66% 23.30% 15.62% 17.08%

Equity

Table 3.4.4: Return on Equity

Graphical Presentation:

RETURN ON CAPITAL EMPLOYED

30.00%
Return on Capital Employed

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2017 2018 2019 2020 2021

Figure 3.4.4: Return on Equity

Interpretation:

48 | P a g e
 ❖ ROA = Annual Net Income / Average Total Assets

Year 2017 2018 2019 2020 2021

Return on 18.72% 19.18% 16.67% 11.55% 12.83%

Assets

Table 3.4.5: Return on Assets

Graphical Presentation:

RETURN ON ASSETS
25.00% Return on Assets

20.00%

15.00%

10.00%

5.00%

0.00%
2017 2018 2019 2020 2021

Figure 3.4.5: Return on Assets

Interpretation:

49 | P a g e
 Performance Evaluation of Hero Future Energies Pvt. Ltd.

➢ Days Sales Outstanding to Average Payment Period

ROA = Annual Net Income / Average Total Assets

Year 2017 2018 2019 2020 2021

Days Sales Outstanding 26.01 23.09 21.96 25.53 25.41
Average Payment Period 67.06 58.95 53.51 61.01 60.25
Table 3.5.1: Days Sales Outstanding to Average Payment Period

Graphical Presentation

80.00 Average Payment Period

70.00 Days Sales Outstanding
60.00
50.00
40.00
30.00
20.00
10.00
0.00
2017 2018 2019 2020 2021

Figure 3.5.1: Days Sales Outstanding to Average Payment Period

Interpretation:

50 | P a g e
 ➢ Comparing NAV with competitors for the year 2021.

Companies name Value

Hero Future Energies 92.06

NTPC 117.85

Adani Power 109.85

JSW Energies 169.52

Tata Power 121.32

Table 3.5.2: NAV

Graphical Presentation

Figure 3.5.2: NAV

Interpretation:

51 | P a g e
 ➢ Comparing Revenue with competitors for the year 2021.

Companies name Value Percentage %

Hero Future Energies 893863503 23%

NTPC 692427630 17%
Adani Power 1677657674 42%
JSW Energies 692791034 18%
Tata Power 893863503 23%
Table 3.5.3: Revenue

Graphical presentation

Figure 3.5.3: Revenue

Interpretation:

52 | P a g e
 ➢ Comparing net income of HFE with competitors for the year 2021.

Companies name Value

Hero Future Energies 41072321
NTPC 41088653
Adani Power 15425038
JSW Energies 2544389
Tata Power 41072321

Table 3.5.4: Net Income

Graphical Presentation

Figure 3.5.4: Net Income

Interpretation:

53 | P a g e
 ➢ Comparing EPS of HFE to competitors for the year 2021

Companies name Value

Hero Future Energies 0.82

NTPC 16.53

Adani Power -1.41

JSW Energies -1.71

Tata Power 2.49

Table 3.5.5: EPS

Graphical Presentation

Figure 3.5.5: EPS

Interpretation:

54 | P a g e
Findings from the Financial Analysis

55 | P a g e
56 | P a g e
57 | P a g e
58 | P a g e
59 | P a g e
60 | P a g e
61 | P a g e
62 | P a g e
63 | P a g e
64 | P a g e
4.3 Description of task accomplishment

➢ Tally ERP 9 Entries

The following process was followed regularly to update the tally entries:
o Review of all the vouchers and careful examination of transactions to identify any
queries and related adjustments.
o Accumulating all the examined vouchers in a single folder to avoid repetition.
o Voucher entries are done based on the date of the transaction in Tally.
o Entries are made according to the type of transaction, i.e., Receipt, Payment, and some
contra entries.
o After the vouching, all the data is checked in the balance sheet, Income Statement, and
trial balance.
o Any queries related to the transaction was clarified from Mr. Deepak Kumar (Sr.
Executive accounts)

➢ Application for an A2 form

o For any foreign transaction, the company is required to fill up the A2 form.
o First, the invoice of the transaction is generated.
o Then an application is drafted for outward foreign remittance
o With the application, the A2 form is attached of the respective bank through which the
transaction was done.
o Finally, this is sent to the upper authority for approval and further process.

➢ GST return filing monthly

o Login to the GST portal using the 15-digit GSTI no. issued by the authority.
o Compile all the invoices made during the month and upload them to the portal.
o After uploading the invoices outward and inward, the return must be filed online.
▪ GSTR 1 = outward return
▪ GSTR 2 = inward return
o The recipient must verify and validate the inward supply details.
o If there is a correction or error, the return can be refiled.

65 | P a g e
 ➢ Financial Model of Hero MotoCorp
o Extracting the company data from public domain such as morning Star, money control,
etc.
o Transfer the data into an excel sheet and sort the data according to the Ind-As format.
o Removing and merging the monotonous information from the financial statements
o Calculate the CAGR to start with the forecasting.
o Preparing the following required schedules to finish the modelling.
▪ Statement of profit and loss
▪ Balance sheet
▪ Cashflow Statement
▪ Assets Schedule
▪ Debt Schedule
▪ Working Capital Schedule
▪ DCF Model
▪ Beta Calculation
▪ Ratio Analysis
▪ Graphical Analysis

66 | P a g e
67 | P a g e
 Bibliography

▪ http://www.herofutureenergies.com/
▪ https://www.mercomindia.com/adani-hero-future-energies-sb-
energy/
▪ https://www.ibef.org/industry/renewable-energy.aspx
▪ https://www.owler.com/company/herofutureenergies#overview
▪ https://www.saurenergy.com/solar-energy-news/indias-top-5-power-
producers-and-their-renewable-energy-plans
▪ https://www.indiamart.com/hero-future-energiesnew-
delhi/aboutus.html
▪ https://www.toughnickel.com/industries/SWOT-Analysis-of-Hero-
MotoCorp
▪ https://www.heromotocorp.com/en-
in/uploads/Annual_Reports/pdf/HMCL_Annual_Report_2017_18.pdf
▪ http://www.trustadvisory.info/tra/fullReportPdf/BTR2018.pdf
▪ https://growjo.com/company/Hero_Future_Energies

68 | P a g e