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Marketing Case Study

Hero Motor Corp is the largest motorcycle manufacturer in India. It reported a 22.18% increase in consolidated turnover to Rs. 19,245.03 crores for 2010-2011. However, EBITDA margins decreased from 17.45% to 13.49% over the same period. The board recommended a final dividend of Rs. 35 per share. The company changed its name to Hero MotoCorp Limited during the year. Auditors found no issues regarding the company's records, taxes, or debts.

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82 views21 pages

Marketing Case Study

Hero Motor Corp is the largest motorcycle manufacturer in India. It reported a 22.18% increase in consolidated turnover to Rs. 19,245.03 crores for 2010-2011. However, EBITDA margins decreased from 17.45% to 13.49% over the same period. The board recommended a final dividend of Rs. 35 per share. The company changed its name to Hero MotoCorp Limited during the year. Auditors found no issues regarding the company's records, taxes, or debts.

Uploaded by

Shrey Kashyap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Welcome

Financial Report Analysis Of


HERO Motor Corp
By,

Kushal.A.B
M.M Sainagarajan
Parigya kulshrestha
Shruthi kova
V Shravan kumar

(Group 7)
About the company
• Hero Motor Corp is a motorcycle and scooter manufacturer based in 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.

• Its facilities have a combined capability to produce over a 5.4 million units
annually.

• Hero has 54.6% share in the domestic motorcycle market.

• It is the world number 1 , two wheeler manufcturer in terms of volume.

•  Annual sales for the year 2009-10 is 20 thousand crores .


Board of Directors

• Mr. Brijmohan Lall Munjal - Chairman

• Mr. Pawan Munjal - Managing Director & CEO

• Mr. Sunil Kant Munjal - Jt. Managing Director

• Mr. Suman Kant Munjal - Non-Executive Director

• Mr. Paul Edgerley - Non-Executive Director

• Mr. Pradeep Dinodia - Non-Executive and


Independent Director
Directors’ Report
• The Company reported a consolidated turnover (Net sales and other income)
of Rs. 19245.03 crores, a whopping growth of 22.18 %.

• The Company’s Earnings Before Interest Depreciation and Taxes (EBITDA)


margins decreased from 17.45% in 2009-10 to 13.49% in 2010-11.

• The Board recommends a Final Dividend of 1750% i.e. Rs. 35 per Equity Share
of the face value of Rs. 2 per share, aggregating to Rs. 698.91 crores.

• The company changed their name from “Hero


Honda Motors Limited” to “Hero MotoCorp Limited”.

• As on March 31, 2011 the total number of employees on the


records of the Company were 5,257.
Accounting Principles
1. Money Measurement Concept
2. Separate Entity Concept
3. Going Concern Concept
4. Cost Concept
5. Accounting Period Concept
6. Conservatism Principal
7. Realisation Concept
8. Accrual Concept
9. Matching Concept
10. Consistency Principal
11. Materiality Concept
Companies Acts Of 1956

 SECTION 217(2AA) – Based on representation received from the


operating management
 SECTION 217(2A) – Benefits of employers
 SECTION 217(1)(e) – companies disclosure of particulars
 SECTION 292A – Agreement with stock exchange
 SECTION 211 – Financial reports of interest in joint venture
 SECTION XIV – Depreciation method
 SECTION 211(3C) – Historical cost convention
Accounting Standards
(under companies act 1956,section 212)

• Disclosure of accounting policies (AS-1)

• Valuation of inventories (AS-2)

• Cash flow statement (AS-3)

• Depreciation accounting (AS-6)

• Revenue recognition (AS-9)

• Accounting for fixed assets (AS-10)


• Accounting for investment (AS-13)

• Accounting for retirement benefits in financial statement of employees


(AS-15)

• Borrowing cost (AS-16)

• Segment reporting (AS-17)

• Leases (AS-19)

• Earnings per share (AS-20)


Schedules
1. Share capital
2. Reserves and surplus
3. Loan Funds
4. Fixed Assets
5. Investments
6. Current Assets, Loans And Advances
7. Less: Current Liabilities And Provisions
8. Deferred Tax Assets and liabilities
9. Other income
10.Manufacturing and other expenses
11.Interest (net)
12.Notes to the accounts
Significant Accounting Policies

1. Accounting convention
2. Use of estimates
3. Fixed / Intangible assets and depreciation /
amortisation
4. Investments
5. Inventories
6. Employee benefits
7 . Foreign currency transactions
8 . Sales
9 . Warranty claims
10. Research and development expenses
11. Taxation
12 . Provisions and contingent liabilities
13. Derivatives
Financial Scorecard
Financial Scorecard
Management Discussion and Analysis

1. Industry and Segment Insight


Management Discussion and Analysis
Launch of New Products
• The Company has consistently relied on
innovation, technology and design to sustain
excitement amongst customers.
People Approach
• The Company has tried to attract the right
talent, build capabilities and facilitate career
development to drive organisational
objectives.
Management Discussion and Analysis

Network Expansion
• Over the last five years, more than 2000
customer touch points have been added to
the Company’s network.
Manufacturing Excellence
• By the end of the year, overall production
capacity went up and the Company ramped up
from 4.6 million units to 5.4 millionunits.
CORPORATE GOVERNANCE

BOARD LEVEL COMMITTEES

• Audit Committee
• REMUNERATION COMMITTEE
• SHAREHOLDERS’ GRIEVANCE COMMITTEE
Auditors’ Report
• The Company has maintained proper records showing full
particulars, including quantitative details and situation of
the fixed assets.

• The Company has during the year not taken any loans,
secured or unsecured from companies,firms and other
parties.

• There are no disputed dues in respect of sales tax,wealth


tax, customs duty, and cess which have not been deposited
Window Dressing
• A strategy used to improve the appearance of the fund performance before
presenting it to clients or shareholders.

• Depreciation method (straight line) has not been changed from the previous
year to present year.

• The inventory evaluation is done on the weighted average basis which has
been followed in the past years.

• The company has no outstanding debts, sales tax, wealth tax, and customs
duty.

• The Company has not taken any loans from financial institutions and has not
issued debentures during the year.
THANK YOU

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