A

PROJECT REPORT

ON

WORKING CAPITAL MANAGEMENT

OF

HERO MOTOCORP LIMITED

Submitted in partial fulfillment ofThe requirement for the award degree of

MASTER OF BUSINESS ADMINISTRATIONTO

DEPARTMENT OF COMMERCE AND BUSINESS MANAGEMENTOSMANIA UNIVERSITY,

HYDERABAD.

SUBMITTED BYGUNDLAPALLY KANAKARAJU

(2170 1267 2029)VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT

(Affiliated to OSMANIA UNIVERSITY)THUMKUNTA, SHAMIRPET, R.R.DIST.

(2012-2014)

D E C L A R A T I O N

I hereby declare that the project work entitled “WORKING CAPITAL

MANAGEMENT OF HERO MOTOCORP LTD," is an original and

bonafide work done by me. The project work is submitted in partial fulfillment of

the requirements for the award of degree of "MASTERS OF BUSINESS

ADMINISTRATION", OSMANIA UNIVERSITY, and HYDERABAD.

.

PLACE:

DATE:

(GUNDLAPALLY KANAKARAJU)

CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled “WORKING CAPITAL MANAGEMENT OF HERO MOTOCORP LTD," has been carried out by GUNDLAPALLY KANAKARAJU, Roll. No: 217012672029 the student of final year MBA under my supervision, guidance and submitted in the partial fulfillment of the requirements for the award of degree MASTER OF BUSINESS ADMINISTRATION in FINANCE and HUMAN RESOURCE of OSMANIA UNIVERSITY, during the academic year 2012-2014.

PRINCIPAL INTERNAL GUIDE

EXTERNAL GUIDE

ABSTRACT

Working Capital may be regarded as the most important factor of a business. Its effective

provision and utilization can do much to ensure the success of a business.

While the efficient management may not only lead to loss of projects but also to the ultimate

shown fall of what otherwise would be considered as promising concern. A study on working

capital is of major importance, because of its close relationship with current day-today operations

of a business.

The team working capital stands for that form of capital which is required for the financially of

working or current need of the company. It is usually invested in raw material work in progress

finished goods accounts receivable and saleable securities.

Management of working capital usually involves planning and controlling current assets, namely

cash and marketable securities, assets receivable and inventories and also administration of

current liabilities.

Working Capital or current assets management is one of the most important aspect of the over all

financial management. It is concerned with the problem that arises in attempting to manage the

current assets.

The current liabilities and the inter relationships that exists between them. Current assets are the

assets, which can be converted into cash with in an Accounting year and includes cash short-term

securities, debtors, bill receivable and inventories.

Current liabilities are that claim of outside, which are expected to mature for payment with in an

Accounting year and includes creditor’s bill payable and outstanding expenses.

The goal of working capital management is to manage the firms current assets and current

liabilities in such a way enough to cover its current liabilities in order to ensure that they are

obtained and used in the best possible way.

A C K N O W L E D G E M E N T

This project bears the inputs of many persons but for, those whose help

project would not have been complete. First of all, I express my gratitude to

Mr. ANIL KUMAR, Asst. Manager, of HERO MOTOCORP LTD, whose able

guidance helped me in successful completion of the project. I am always thankful

to my unit manager for spending time to clarify my doubts.

At the outset, I express my deep sense of gratitude to professor. Mohan S. Rao,

VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENTFor giving me an opportunity and permission to undertake this practical training in

field I am associated with.

I extend my humble thanks to, Mr. Mahesh Kumar Head of the Department

and Mrs. Sailaja FINANCE Lecturer for giving her valuable suggestion and

Guidance during the course of dissertation and in preparation of this project

GUNDLAPALLY KANAKARAJU

INDEXS.No: CHAPTER PAGE

1. CHAPTER-1 1-6

INTRODUCTION

SCOPE OF STUDY

OBJECTIVES OF STUDY

METHODOLOGY OF STUDY

LIMITATIONS OF STUDY

2. CHAPTER-1I 7-29 INDUSTRY PROFILE & COMPANY PROFILE

3. CHAPTER-1II 30-50

REVIEW OF LITERATURE

4. CHAPTER-1V 51-64

DATA ANALYSIS AND INTERPRETATION

5. CHAPTER-V 65-88

FINDINGS

SUGGESTIONS

CONCLUSIONCONCLUSION

BIBLIOGRAPHYBIBLIOGRAPHY

Questionnaires Respondent chats Respondent Name sheets Likert and Dichotomous tables