A

PROJECT REPORT
ON
WORKING CAPITAL MANAGEMENT
OF
HERO MOTOCORP LIMITED

Submitted in partial fulfillment of

The requirement for the award degree of
MASTER OF BUSINESS ADMINISTRATION
TO
DEPARTMENT OF COMMERCE AND BUSINESS MANAGEMENT
OSMANIA UNIVERSITY,
HYDERABAD.
SUBMITTED BY
GUNDLAPALLY KANAKARAJU
(2170 1267 2029)
VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT
(Affiliated to OSMANIA UNIVERSITY)
THUMKUNTA, SHAMIRPET, R.R.DIST.
(2012-2014)

DECLARATION

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 creditors 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.

ACKNOWLEDGEMENT
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 MANAGEMENT
For 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

INDEX
S.No:
1

CHAPTER
CHAPTER-1

PAGE
1-6

INTRODUCTION
SCOPE OF STUDY
OBJECTIVES OF STUDY
METHODOLOGY OF STUDY
LIMITATIONS OF STUDY
2

CHAPTER-1I

7-29

INDUSTRY PROFILE &

COMPANY PROFILE

CHAPTER-1II

30-50

REVIEW OF LITERATURE

CHAPTER-1V

51-64

DATA ANALYSIS AND

INTERPRETATION

CHAPTER-V

CONCLUSION
BIBLIOGRAPHY

FINDINGS
SUGGESTIONS

Questionnaires
Respondent chats
Respondent Name sheets
Likert and Dichotomous tables

65-88