SUMMER TRAINING PROJECT REPORT

ON
“WORKING CAPITAL MANAGEMENT AT AKANSHA
AUTOMOBILES (RUDRAPUR), PVT. LTD RUDRAPUR
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
BACHELORS DEGREE IN BUSINESS ADMINISTRATION
OF

HNB GARHWAL UNIVERSITY, DEHRADUN

SUBMITTED BY SUBMITTED TO
GOLU KUMAR                                                  MS. MANISHA DOGRA
BBA 4th  SEM                                                     
 ROLL NO – 192055….9

BEEHIVE COLLEGE OF ADVANCE STUDIES

DEHRADUN
Batch 2019-2022
 ACKNOWLEDGEMENT

This report has been made possible with the cooperation of many persons whom I
wish to express my gratitude and appreciation. I am very grateful to the people who
supported me to transform the report in the materialistic form.

I am thankful to MS. MANISHA DOGRA at BCAS, Dehradun for her gratitude

during my project and giving me full co-operation and also valuable information and
guidance, without which it would not be possible for me to complete the manuscript.

I would also like to thanks the librarian and staff members of BCAS, Dehradun for
providing me the required books in this field and my friends who were always there to assist
me at odd hours also.

GOLU KUMAR 
BBA 4 SEM
th

BEEHIVE COLLEGE

DECLARATION

I hereby declare that the project entitled “WORKING CAPITAL AT BM HYUNDAI,

DEHRADUN” submitted in partial fulfillment of the requirement for the degree of BBA to

BCAS, at Dehradun is my original work and not submitted for award if any other degree/

diploma or similar title or prize.

DATE:16 Aug 2021 GOLU KUMAR

BBA (2019-22)
PLACE:   Dehradun
CONTENT
 SR.N TOPIC
O
1 CHAPTER 1
INTRODUCTION
2 Chapter 2
REVIEW OF LITERATURE 
2 CHAPTER 3
RESEARCH METHODOLOGY
3 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4 CHAPTER 5
FINDINGS
CONCLUSION
RECOMMENDATIONS 
BIBLIOGRAPHY
QUESTIONNAIRE 

 
 
 
 

CHAPTER-1
INTRODUCTION
INTRODUCTION
Management studies in any country can never be completed without a probe into the country’s economy
with a view to if any, and recommend improvements in its working condition. This is especially true in a
developing country like that in Nepal.
Concept of PSU is not very well defined, as there is no nationally or internationally accepted definition of
PSU. Broadly speaking PSU refers to those activities of business which are owned and managed by the
central government, state or local providing goods and services for a price. The ownership with the
Government should be 51% or more. 
Capital is one of the most important factors of production. It is required for financing all the activities in an
organization. No business can be establish without adequate amount of capital. The capital is required for
carrying out the day to day operation in an organization is known as working capital. It is the excess of
current assets over current liabilities. An adequate amount of working capital is maintained for the smooth
running of the firm and the fulfillment of twin objectives of liquidity and profitability. Empirical analysis
shows that ineffective management of working capital is one of the important factors causing industrial
sickness.
Efficient management of working capital is an important indication of sound health of an organization,
which requires reduction of unnecessary blocking of capital in order to bring down cost of financing. The
economic and trade regimes all over the world has been witnessing dramatic changes in the recent times. At
present about 80% of the capital in the world is in the hands of developed countries like the USA, European
Union, Japan etc. but in developing country like Nepal, capital is the scarce resource. The country is not able
to make effective utilization of available resources due to lack of adequate capital.  The funds are borrowed
from the developed countries and global financial institutions like the World Bank, A. Development Bank
for financing the various requirements. Nepal’s external debt stood $112.1 billion. Meaning of Working
Capital
Every business needs funds to carry out business activities. Funds are needed for two purposes.
 For the establishment of business
 To carry out day to day activities.
The funds that are required to establish business such as fixed assets (plant and machinery, land and
building, furniture) are called fixed capital. Fund required to finance day to day business day to day
operation are called working-capital.
Working capital is the lifeblood and the nerve centre of a business. Just as circulation of blood is essential in
human body for maintaining life. Working capital is very essential for the smooth running of a business.
Working capital is that part of capital which is available and used for carrying out routine business operation
or financing current assets. Working capital is known as circulating capital because it keeps on circulating.
According to Genestenberg, “circulating capital means current assets of the company that are change in the
ordinary course of business firm one form to another, as for example from cash to inventories to receivables,
receivables to cash”.
A measure of both a company’s efficiency and its short term financial health. The working capital ratio is
calculated as:
Working Capital = Current Assets – Current Liabilities
Positive working capital means that the company is able to pay off its short-term liabilities. Negative
working capital means that a company currently is unable to meet its short-term liabilities with its current
assets (cash, accounts receivable and inventory). Also known as “net working capital”, or the “working
capital ratio”.
Working capital also gives investors an idea of the company’s underlying operational efficiency.  Money
that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any
of the company’s obligations. So, if a company is not operating in the most efficient manner (slow
collection), it will show up as an increase in the working capital.

Working Capital Management

Working capital management is concerned with the problems arise in attempting to manage the current
assets, the current liabilities and the inter relationship that exist between them. The term current assets refers
to those assets which in ordinary course of business can be, or, will be, turned in to cash within one year
without undergoing a diminution in value and Without disrupting the operation of the firm. The major
current assets are cash, marketable securities, account receivable and inventory. Current liabilities were
those liabilities which intended at their inception to be paid in ordinary course of business, within a year, out
of the current assets or earnings of the concern. The basic current liabilities are account payable, bill
payable, bank over-draft, and outstanding expenses. The goal of working capital management is to manage
the firm’s current assets and current liabilities in such way that the satisfactory level of working capital is
mentioned. The current assets should be large enough to cover its current liabilities in order to ensure a
reasonable margin of the safety.
Definition
 According to Guttmann & Dougall         
      “Excess of current assets over current liabilities”.
According to Park & Gladston-
“The excess of current assets of a business (i.e. cash, accounts receivables, inventories) over current items
owned to employees and others (such as salaries & wages payable, accounts payable, taxes owned to
government)”.

Fig 3:- Operating Cycle of Working Capital

Classification of working capital

Working capital may be classified into two ways:
 On the basis of concept
 On the basis of time
1. On the basis of concept
On the basis of concept, working capital is classified as Gross working capital and Net working
capital.

a. Gross Working Capital

Gross working capital refers to the firm’s investment in current assets. Current assets are those assets,
which in the ordinary course of business can be converted into cash within a short period of time.
Example: cash, short-term securities, debtors etc.

b) Net Working Capital

Net working capital is the difference between current assets and current liabilities. It is a concept for
determining the ability of the concern to meet future needs. Net working capital may be positive or
negative. When the current assets exceed current liabilities, the working capital is positive. On the
other hand if the current liabilities exceed current assets then the working capital is negative.

2. On the basis of time

On the basis of time it is classified as permanent working capital and fluctuating working capital.
a. Permanent Working Capital
It is minimum amount of working capital required to ensure effective utilization of current assets. The
amount of permanent working capital increases with the increase in fixed assets over a long period.
The increase in fixed assets increase sales turnover which in turn leads to increases permanent
working capital.

b)  Fluctuating Working Capital

It is the amount of working capital, which is required to meet seasonal demand and some special
exigencies. These seasonal demands are subject to fluctuations and are generally cyclical in nature. It
is the extra working capital needed to support the changing production and sales activities of the firm.

Components of Working Capital

The components of working capital are current assets and current liabilities.

Current Assets
Current assets are those assets that can be converted into cash within an accounting year. They include:
 Cash in hand and bank balance
 Bills receivable
 Sundry debtors
 Short-term loans and advances
 Inventory or stock
 Temporary investment of surplus fund
 Prepaid expenses
 Accrued income

Current Liabilities
The current liabilities are those which are intended to be paid in the ordinary course of business within
a short period of normally one accounting year out of the current assets or the income of the business.
Current liabilities include:
 Bills payable
 Sundry creditors or account payable
 Accrued or outstanding expenses
 Short-term loans, advances and deposits
 Dividend payable
 Bank overdrafts
 Provision for taxation

Importance of Adequate Working Capital

Working capital is very important for successful conduct of each business. It is very essential to maintain
smooth running of the business. No business can run successfully without an adequate working capital.
Following are the adequate advantage of working capital
 Solvency of the business
 Goodwill of the firm
 Easy loans 
 Cash discount
 Regular supply of raw materials
 Regular payment of salaries, wages and day to day commitments
 Exploration of favorable market condition
 Ability to face crisis
 Quick and regular return on investments
  High morale

Factors Determining Working Capital Requirement

          The working capital requirements of the concern depend upon:
 Nature of the business
The quantum of working capital requirements in the concern basically depends upon the nature of its
business. The public utility concern such as railways and electricity boards need a very limited
working capital they provide cash sales only. Trading and financial firm require relatively large
amount, whereas manufacturing undertaking require sizeable working capital.
 Size of the business
The working capital of the concern is directly influenced by the size of the business. The greater the
size of the business unit, the larger the amount of working capital required.
 Manufacturing process
The level of the working capital depends upon the time required to manufacture goods. Longer the
processing period to manufacture, the larger will be the amount of working capital required.
 Volumes of sales
Volumes of the sales are the unique factor affecting the size and components of the working capital.
The volume of sales and working capital are directly related to each other. When the volume of sales
increases the investment on working capital also increases.
 Production policy
In certain industries the demand is subject to wide fluctuation due to seasonal variations. In such
case, the requirement of working capital depends on the production policy.
 Credit policy
A concern, which buys raw material on credit and sells the product on cash requires less amount of
investment on inventory. Thus the working capital will be low.
 Turnover of working capital
Turnover means the speed with which the working capital is converted to cash by sales of goods. The
speeder the turnover the smaller will be the amount of working capital required.
 Seasonal variation
In certain industrial concern raw material are not available throughout the year. They have to buy
these materials to ensure uninterrupted flow of production, in that case sizeable amount of working
capital is required.
 Production cycle
It means the time required to convert raw materials to finished goods. The longer the operating cycle,
the larger will be the amount of working capital requirements.
 Price level changes
Usually a firm will have to maintain a high amount of working capital during periods of rising prices,
as more funds are required to maintain the same current assets.
Financial Statement Analysis
Financial analysis is the process of determining financial strengths and weakness of the firm by
establishing strategic relationship between the items of the items of the balance sheet, profit and loss account
and other operative data. In the words of Myers, “financial statements analysis is largely a study of
relationship among various financial factors in a business as disclosed by a single set of statements, and a
study of the trend of these factors as shown in series of statements
The purpose of financial analysis is to diagnose the information contained in financial statements so
as to judge the profitability and financial soundness of the firm. The analysis and interpretation of financial
statements is essential to bring out the mystery behind the figures in financial statements. Financial
statements analysis is an attempt to determine the significance and meaning of the financial statement data
so that forecast may be made of the future earnings, ability to pay interest and debt maturities (both current
and long term) and profitability of a sound dividend policy.
 The term financial statement analysis includes both ‘analyses, and ‘interpretation’. A distinction
should be made between the two terms. While the term ‘analysis’ is used to mean the simplification of
financial data by methodical classification of the data given in financial statements, ‘interpretation’ means
‘explaining the meaning and significance of the data so simplified’. However, both ‘analysis and
interpretation’ are interlinked and complementary to each other. Analysis is useless without interpretation
and interpretation without analysis is difficult or even impossible.  

Methods of Financial Analysis:

The analysis and interpretation of financial statements is used to determine the financial position and
results of operations as well. A number of methods or devices are used to study the relation ship between
different statements. An effort is made to use those devices which clearly analyze the position of the
enterprise. The following are the methods of analysis are generally used:
1. Comparative statements;
2. Common-size statements;
3. Funds flow analysis;
4. Ratio analysis;
1. Comparative Statements:
The Comparative financial statements are statements of financial position at different periods;
of time. The elements of financial position are shown in comparative form so as to give an idea of financial
position at two or more periods. Any statement prepared in comparative form will be converted into
comparative statements. From practical point of view, generally, two financial statements (balance sheet and
income statement) are prepared in comparative form for financial analysis purpose. Not only the comparison
of the figures of two periods but also be relationship between balance sheet and income statement enables an
in depth study of financial position and operative results.

i) Comparative Income Statement:

The income statement gives the results of the operations of business. The comparative
income statement gives an idea of the progress of a business over a period of time. The changes in absolute
data in money values and percentage can be determined to analyse the profitability of the business.

ii) Comparative Balance Sheet:

The comparative balance sheet analysis is the study of the trend of the same items, group of
items and computed items in two or more balance sheets of the same business enterprise on different dates.
The changes in periodic balance sheet items reflect the conduct of a business. The changes can be observed
by comparison of the balance sheet at the beginning and at the end of a period and these changes can help in
forming an opinion about the progress of an enterprise.

2. Common-size Statements:
The common-size statements, balance sheet and income statement are shown analytical
percentages. The figures are shown as percentages of total assets, total liabilities and total sales. The total
assets are taken as 100 and different assets are expressed as percentage of the total. Similarly, various
liabilities are taken as part of total liabilities, these statements also known as component percentage because
every individual item is stated as percentage of the total 100.  
The short comings in comparative statements and trend percentages where changes in items
could not be compared with the totals have been covered up. The analyst is able to asses the figures in
relation to total values.

i) Common-size Income Statement:

 The items in income statement can be shown as percentages of sales to show the relation of
each item to sales. A significant relationship can be established between items of income statement and
volume of sales. The increase in sales will certainly increase selling expenses and not administrative and
financial expenses. In case the volume of sales increases to considerable extent, administrative and financial
expenses may go up. In case total sales are declining, the selling expenses should be reduced at once. So, a
relationship is established between sales and other items in income statement and this relationship is helpful
in evaluating operational activities of the enterprise.

ii) Common-size Balance Sheet:

A statement in which balance sheet items are expressed as the ratio of each asset to total
assets and the ratio of each liability is expressed as a ratio of total liabilities is called common size balance
sheet. The common size balance sheet can be used to compare companies of different size. The comparison
of figures in different periods is not useful because total figures may be affected by a number of factors. It is
not possible to establish standard norms for various assets. 

3. Funds flow analysis:

Funds flow statement shows the movement of funds and is a report of the financial operations
of the business undertaking. It indicates various means by which funds were obtained during a particular
period and the ways in which these funds were employed. The flow of funds occur when a transaction
changes on the one hand and non-current account and on the other a current account & vice- versa.

Flow of funds:
 
 
 
 
 

Various sources from which funds were raised  and the uses to which these funds were put. Funds flow
statement is formulated on the basis of   working capital basis and on Cash basis
Steps in pre preparation of funds flow statement:
      1. Increase or decrease of working capital
       2. Funds from operations
       3. Funds flow statement
Importance of Funds flow statement :
1.  It helps in the analysis of financial operations
2.  It throws light on many perplexing questions of general interest 
3.  It helps in formation of a realistic dividend policy.
4.  It acts as future guide
5.  It helps in the proper allocation of resources
6.  It helps in appraising the use of working capital
7.  It helps in knowing the overall credit-worthiness of a firm
Funds flow statement: 
1. It should be remembered that a funds flow statement is a substitute to the income statement or a balance
sheet. It provides only some additional information as regards changes in working capital.
2. It cannot reveal continuous changes.
3. It is not an original statement but simply arrangement of data given   in the Financial statement.
RATIO ANALYSIS
In valuing and assessing the financial health of any company, various types of analyses are necessary to
develop a competent report and conclusion, whether it is digging into the qualitative aspects of a company,
or the quantitative. With the quantitative, it considers examining the measurable dynamics of a company.
How we pull out the quantitative aspect will come largely from calculations using the items on a company’s
financial statements (i.e. income statement, balance sheet, statement of cash flows). As we probably know,
the majority of the ratios calculated in this report will be looking at items from a financial statement and
understanding the relationship between them. Like any research, quantitative analysis will produce excellent
results when combined with other methods and techniques in studying a company.

Role of ratio analysis

Ratio analysis helps to appraise the firms in the term of there profitability and efficiency of performance,
either individually or in relation to other firms in same industry. Ratio analysis is one of the best possible
techniques available to management to impart the basic functions like planning and control. As future is
closely related to the immediately past, ratio calculated on the basis historical financial data may be of good
assistance to predict the future. E.g. On the basis of inventory turnover ratio or debtor’s turnover ratio in the
past, the level of inventory and debtors can be easily ascertained for any given amount of sales. Similarly,
the ratio analysis may be able to locate the point out the various arias which need the management attention
in order to improve the situation. E.g.
Current ratio which shows a constant decline trend may be indicate the need for further introduction of long
term finance in order to increase the liquidity position. As the ratio analysis is concerned with all the aspect
of the firm’s financial analysis liquidity, solvency, activity, profitability and overall performance, it enables
the interested persons to know the financial and operational characteristics of an organization and take
suitable decisions.

Types of Ratios

Fig : 2

Leverage ratios

The leverage ratio, or gearing level, effectively measures the fixed debt payment commitment. Too high a
gearing level can imply a high risk to the cash flow of a company and its ability to pay dividends to
shareholders.

There are two aspects of the long-term solvency of a firm: 

i. Ability to repay the principal when due, and 

ii. Regular payment of the interest.

Capital structure or leverage ratios throw light on the long-term solvency of a firm. 

Accordingly, there are three different types of leverage ratios. 

a. Debt-equity ratio
b. Debt-assets ratio
c. Interest coverage ratio
 1. Debt-equity ratio

Debt-equity ratio measures the ratio of long-term or total debt to shareholders equity.

Debt-equity ratio = __Total debt_____

                                  Shareholder’s Equity

Benchmark: “1”; A ratio greater than “1” indicates the company’s assets are mainly financed with
debt, while a ratio less than “1” indicates the company’s assets are primarily supplied with equity.

If the D/E ratio is high, the owners are putting up relatively less money of their own. It is danger
signal for the lenders and creditors. If the project should fail financially, the creditors would lose heavily. 

A low D/E ratio has just the opposite implications. To the creditors, a relatively high stake of the
owners implies sufficient safety margin and substantial protection against shrinkage in assets.

2. Debt to total assets ratio

This ratio is not much different from the Total Debt to Equity ratio. Essentially, it tells us what portion of the
company’s assets is financed through debt.
Debt to total assets ratio = __Total debt___
                                                 Total Assets
Benchmark: Industry average or “1”. If the ratio is above “1”, that would indicate that the majority of the
company’s assets are financed through debt.
While if the ratio is under “1”, than the company is primarily financed through equity.
3. Interest Coverage Ratio

Interest Coverage Ratio measures the firm’s ability to make contractual interest payments.
Interest coverage ratio = EBIT (Earning before interest and taxes)
                                                             Interest
Benchmark: “1”. The lower the ratio, the more of a burden the company’s interest debt is on the company.
If a company does not have any long-term debt, this ratio does not apply, because there is no item that will
incur interest.

Liquidity Ratio

Liquidity ratios measure the ability of a firm to meet its short-term obligations and help a good financial
modeler assess this aspect of a company’s performance from the results of a financial model or financial
statements.

There are 2 common liquidity ratios that a financial modeler is likely to come across.

a. Current ratio
b. Quick ratio

i. Current Ratio
The current ratio gives an indication of whether the business will be able to pay its debts in the short
term (i.e. the next 12 months). Clearly, this ratio should be as high as possible, and a prudent ratio is 2 : 1

Current Ratio = __Current Assets____

                             Current Liabilities 

Benchmark: “1”; A ratio of “1” would indicate that the company has exactly enough cash (or assets that is
relatively easy to turn into cash) to pay off its debt. If the ratio is higher than “1”, the company can
successfully pay off its debt while at the same time still have cash left over to continue operating. Naturally,
if the ratio is under “1”, then investors should be weary 
of the fact that the company cannot pay off its short-term debt if necessary. If a company has a ratio of
“2.5”, one can say the company can pay off its liabilities more than two times over.
ii. Quick Ratio

The quick ratio, or acid test, focuses upon whether the business could pay its debts in the very short
term – i.e. tomorrow, or next week.  As stock cannot always be sold quickly it is removed from the
calculation of current assets. Again, this ratio should be as high as possible, and a prudent ratio is  1 : 1

Acid-test Ratio = ___Quick Assets___  

                                Current Liabilities 
Benchmark: “1” If the Quick Ratio is significantly lower than the Current Ratio, then it indicates the
company is heavily dependent upon inventory.
Profitability Ratios
The objective of profitability relates to a company’s ability to earn a satisfactory income so that investors
and stockholders will continue to provide capital. It is also closely linked to its liquidity because earnings
ultimately produce cash flow.
Profitability is determined by several ratio calculations as follows:
a. Return on owner’s equity
b. Return on total assets
c. Net profit margin
I. Return on Shareholders’ Equity
Return on shareholders equity measures the return on the owners (both preference and equity shareholders)
investment in the firm.
Return on shareholders’ equity (Net worth) = 
Net profit after taxes – Preference dividend   X 100
                                       Average ordinary shareholders’ equity
Benchmark: Industry average. As an investor, one should expect a higher ROE for growth companies.
Companies that bring in high profits per dollar will tend to pay off shareholders in the form of higher
dividends.
II. Return on Total Assets
Return on assets measures the overall effectiveness of management in generating profits with its available
assets.
Return on Assets (ROA) = Net Income    X 100
                                              Total assets
III. Net Profit Margin
Net profit margin measures the percentage of each sales rupee remaining after all costs and expense
including interest and taxes have been deducted.
Net Profit Ratio = Earning after interest and taxes    X 100
                                                Net sales
Benchmark: The industry average is generally used to gauge whether the company’s profit margin is
adequate or not. A low profit margin may not necessarily reflect that the company itself is doing poorly in
either business or too many expenses, but rather a possible pricing strategy with their product/service or the
impact competition is having on them.

Efficiency Ratios
Activity ratios measure the speed with which various accounts/assets are converted into sales or cash.

There are 2 common liquidity ratios that a financial modeler is likely to come across.

a. Inventory Turnover Ratio

b. Assets Turnover Ratio
c. Debtors Turnover Ratio
I. Inventory Turnover Ratio 
The Inventory Turnover tells us how many times a company has gone
through, or “turned over”, its inventory during a specified time period, usually a year. It gives us an
indication of how fast a company can sell its products.
Inventory Turnover Ratio = Cost of Goods Sold___
                                                  Average inventory
Benchmark: Industry average; Because this is more of a “performance” ratio, if you will, it is important to
see how well the company is able to sell its inventory compared to its competitors, so using the industry
average makes a nice benchmark. Naturally, the higher the ratio, the stronger the sales. A low ratio would
possibly indicate poor sales.
II. Assets Turnover Ratio
This tells us how much revenue is generated for every $1 of assets. The
higher the ratio, the more efficient the company is with its assets.
Asset Turnover Ratio = __Revenue__
                                          Total assets
Benchmark: Industry average; as said above, because this is a “performance” ratio, it is important to see
how the competitors, or the rest of the industry, are doing compared to yours.
III. Debtors Turnover Ratio
Measures the firm’s ability to collect payment from its customers, ex. Its ability to collect the cash from
someone who paid by credit.
Debtors turnover = ______________Credit sales__________________
                                 Average debtors + Average bills receivable (B/R)
Benchmark: Industry average. A higher ratio indicates the firm’s efficiency in its ability to collect those
payments, and/or the company operates more on a cash basis. A low ratio may mean that the company
should possibly re-think its credit policies and find out why the firm cannot collect its customer’s payments
on a timely fashion.

IV. Market Value Ratio

a. Book Value
This shows us the accounting value of a company versus the market value. While market value incorporates
investors’ expectations and potential growth, the accounting value shows us the bare numbers of costs and
earnings.

Book Value per Share (BV) = Stockholder's Equity - Preferred Stock

                                                            Average Outstanding Shares
Benchmark: The industry average is generally used to gauge whether the company’s profit margin is
adequate or not. Generally, the market value (stock price) of the company is probably going to be
significantly higher than the book value, particularly in a bull (strong) market. In a bear (weak) market, the
market and book value will probably be close to equal. If the market value is below the book value, this may
be a potential sign of undervalue.
 
 
 
 

COMPANY PROFILE
COMPANY PROFILE

Hyundai Motor Company

Republic of Korea
Established : 1967
Founder : Late Chung Ju-Yung
Chairman &CEO : Chung Mong-koo
HMC Group Turnover : US $50 Billion
Production Capacity in Korea: 30.59 Lacs
Hyundai + KIA (2003)
Production Capacity in Overseas: 10.44 Lacs
Hyundai + KIA (2003)
Domestic Market Share : 71.6%
Hyundai + KIA (2003)
Hyundai + KIA – Global Sales Ranking: 7 Largest
th

(World Ranking –2004)

HMC Group Presence  : 185 Countries 
HMC – Global Distribution Network: 180 Distributors
HMC – Global Dealer Network   : 4600 Dealer
Hyundai Motor India Ltd.
Government of India Approval for 100%: 1996
Subsidiary of Hyundai Motor Company
Managing Director : B. H. Sung
President : B.V.R.Subbu
Executive Director Sales&Marketing : W.S.Mim
Location of Manufacturing Unit           : Tamil Nadu, India
Investment in India till data         : Over US $900M
Production capacity per year           : 250Lac
Head Quarters- Marketing, Sales & service   : New Delhi
HMIL Sales – 1998 to 31 Oct 2004 : 6.78 Lacs
Dealer National Network (as on 31.10.2004): 133 Dealers
National Service Network (as on 31.10.2004): 565 Nos.
Hyundai Motor India Ltd.
Milestones
  Launched of Hyundai Motor Company
 1974    Launched on Korea’s first proprietary automobile-Pony
 Completion of providing ground in Ulsan, South Korea
 Launched of Hyundai Excel and Hyundai Grander  
 Establishment of Hyundai Motor America
First export of Hyundai Excel to the US
Launched of sonata
1990     Launch of Hyundai Scoupe and Hyundai Elantra
Launched of Hyundai Accent 
1995       Introduction of Hyundai Marcia An Hyundai Lantra
 Commercial Vehicle research center setup in Jeonju,South                    
 Korea

 Launched of Hyundai Dynasty and Hyundai Atos

 R&D center setup in Namyang, South Korea
 Cumulative production surpasses 10 million units
Assembly Plan setup in Turkey
Launch of Hyundai Sonata and XG
Launch of Hyundai Centennial & Trajet Mini Van
Launch of Hyundai Santa FE SUV
 Strategic alliance with Daimler Chrysler signed
Launched of Hyundai Terracan
 Hyundai Matrix Chairman gets Automotive Hall of Fame’s DSC
 JD Power Chairman Award for Hyundai Motor Company
 Ground Breaking of  first US plant in Alabama
 New European HQ setup in russelshiem 
 Launch of Hyundai Getz
 JV signed with Beijing Automotive, China
 Gold level PBEC Environmental Award
Ground Breaking of Proving ground in California
 Sonata, Santa FE top US JD Power APEAL Studies.
2004       Hyundai Motor America become the most improved brand 
 And corporation in 2004 according to the JD Power and
 Associates
 Initial Quality Study (IQS) & in the 2004 IQS Corporate 
Ranking   
 TVI Brand Report “Strategic Vision Total Value Index” –
 Hyundai finished 2   place (after Lexus) & three Hyundai    
nd

  Vehicle rate as “Best value “– Hyundai Elantra, Hyundai XG350 Hyundai Santa FE.
 “New Car Preview 2005” special publication from consumers
Union, as reported by article in USA Today, CNN Money, the  
     Wall Street Journal, 
 The Detroit News & Automotive News Hyundai Sonata 
Is listed as a most reliable vehicle in the sedan category.   
Hyundai has introduced the following models in the last 9 years:

  Model
Year
Accent October, 1999

Accent CRDi January,2003

Accent Viva August,2002

Accent Viva CRDi January,2004

Elantra April, 2004

Getz September, 2004

Santro May, 1998

Santro New Look July 2001

Santro Xing May, 2003

Santro Zip Drive May, 2000

Sonata 1.6v July, 2001

Sonata 2.7v October, 2003

Terracan August,2004

Tuscan January, 2005

HISTORY OF AUTOMOBILE INDUSTRY

In1769 a French Engineer Caption Nicholas Cognate built the First road vehicle propelled by its own power
it was a three wheeler, Four seat vehicle fitted with a steam engine. It attends a speed of about 2.5mph for 15
minutes. In the field of car manufacture Diamler Motor Company built the first successful American car in
1899 by DUREA BROTHERS Charles and Frank in Massachusetts, it was the first four wheeler Car capable
for producing 3.5 HP engine. In 1888 Rover Company manufactured a motorized tricycle& the Rover car in
1904 with 4HP engine. Sun beams 350 racing cars with 12 cylinders aero engine broke the world’s road
record three times. Its speed was 150 mph. In India, the motor car was appeared in 1989.At that time
Bombay had the first taxi cars. In 1903.an American company Began ape rate a public taxi service with fleet
of 50 cars. For About 50 year from 1898, India was an importer of automobile industry.
In 1935, the Bharat Ratna shri M.Visvearaya made an Automob9ile industry in India but the Government
did not approve this plan. In1943-44, two Automobile factories were setup in India. There Manes are
Hindustan Motor Ltd. Bombay at present.

SCOPE OF SMALL CARS IN THE SUBHASHNAGAR

Earlier the small cars were novelty to customer and to some they were even unacceptable but the ground
rules have changed with many multinational brands being launched in the region. Unlike medium sized cars
a small car is easy to drive in the city Condition is trendy and easy to park light on ones pocket and suit to
Growing nuclear families in the region also score its major sales from the small cars i.e... Hyundai Santro
and Hyundai Getz, thus small cars are definitely in the entry of Multinational like Fiat, Maruti Suzuki,
Daewoo, and Tata has gives tremendous competition to Hyundai Motors India Ltd. And also has given
technological advancement and wider choice to Customers. To the people venture out to buy these cars are
not Just disgruntled Hyundai owners, who found the gap to the middle Size cars too high to surmount in the
battle of wallets but also those who  Would like to add on one or more of these minimum wonder toTheir
city. The chair of these new cars not just lies in their utter novelty but in the overall design. They are utterly
contemporary shocking Stylish and highly efficient. The Hyundai and other have gone on Sale in Europe
and else where earlier this year and initial repots Have been positive better drive ability, quick acceleration,
Fuel Efficient& resale value are some important factors that are required In the area. The new ranges of cars
are constantly trying to fulfill   the needs.

CHAPTER 2
REVIEW OF LITERATURE
REVIEW OF LITERATURE
Pas SC .L.pike .RT.H (1984) studied that over the past 40 yrs major theoretical developments have
occurred in the areas of longer- term investment and financial decision making. Many of this new concept
and the related technique are now being employed successfully in industrial practice. By contrast, far less
attention has been paid to the area of short- term finance in particular that of working capital management.
Such neglect might be acceptable were working cap[ital consideration of relatively imp to the firm, but
effective working capital management has a crucial role to play enhancing the profitability and growth of the
firm. Indeed, experience show that inadequate planning and control of working capital is one of the more
common causes of business failure.

Herzfeld B2 (1990) studied that “cash is king” so say the money manager who share the responsibility of
running this country business. And with banks demanding more their prospective borrowers, greater
emphasis has been placed on those accountable for so called working capital management. Working capital
management refer to the management of current or short term assets and short term liabilities. In essence,
the purpose of that function is to make certain that the company has enough assets to operate its business.
Here are things you should know about working capital management.

Samilojlu f and demirgunes K3 (2008) studied that effect of working capital management on firm
profitability. In accordance with this aim, to consider statistically significant relationship b/w firm
profitability and the components of cash conversion cycle at length, a sample consisting of Istanbul stock
exchange (ISE) listed 

Hardcastle  J5 (2009)  Studied that working capital, sometimes called gross working capital, simply refer to
the firm’s total current assets ( the short term ones), cash, marketable securities, account receivable and
inventory. While long term financial analysis primarily concerned strategic planning, working capital
management deals with day to day operation. By making sure that production line do not stop due to lack of
raw material, that inventories do not build up because production continues unchanged when sales dip, that
customer pay on time and that enough cash is on hand to make payment when they are due. Obviously
without good working capital management, no firm can be efficient and profitable.    
Pai, Vadivel & Kamala (1995) have studied about the diversified companies and financial performance.
Main purpose of research was found out the relationship between diversified firms and their financial
performance. For the purpose of research, they have selected seven large firms and analysed those firm
which having different products-both related and otherwise-in their portfolio and operating in diverse
industries. In this study, a set of performance measures / ratios was employed to determine the level of
financial performance and variation in performance from one firm to another has been observed and
statistically established. They revealed that the diversified firms studied have been healthy financial
performance. 
Vijayakumar A. (1996) has studied about ‘Assessment of Corporate Liquidity - a discriminate analysis
approach’ in this research he has revealed that the growth rate of sales, leverage, current ratio, operating
expenses to sales and vertical integration was the important variables which determine the profitability of
companies in the sugar industry. Also he has studied the short term liquidity position in twenty-eight
selected sugar factories in co-operative and private sectors. In research a discriminate analysis has been used
by the researcher, to undertaken to distinguish the good risk companies from poor risk companies based on
current and liquidity ratios. In this study discriminating ‘Z’ scores have been calculated with the help of
discriminate function and according to the ‘Z’ scores the companies are ranked in the order of liquidity.
Loundes (1998) studied on his research paper regarding “performance of Australian Government Trading
Enterprises: An overview”. He has provided an overview of GTE performance over the 5 years to 1996
using the IBIS Enterprise Database, following the method of analyzing firm performance as outlined by the
steering committee (1998). He has made comparative analysis and its results indicate that there are large
differences in performance across firms, and more particularly, across the industries. Assessing the
performance of Government Trading Enterprises (GTEs) has become increasingly important in the context
of the push towards privatisation. 
Dhankar (1998) has studied about the criteria of performance measurement for business enterprises in India
study of public sector undertakings. The author gives a new model for measuring the performance of a
business enterprise in India, wherein, the basis is to compare its actual rate of return with its expected risk
adjusted rate of return. Realizing the importance and controversy of public sector in India, an attempt was
made to measure the performance of all public sector undertakings, which were started up to 1964 and were
in operation until 1983. It is shocking to know that half of them on an average want to talk of making excess
returns, have not been able to earn equal to their cost of capital. 
Sengupta (1998) studied concerning the performance of the fertilizers industry in India. By Analysing of
cost functions and cobb-douglas production function have been made to check the performance of the
industry. Analysis of shifting cost functions further highlight that the firms belonging to this industry expand
capacities, even before fully exploiting the existing capacity conforming to the oligopolistic behavioural
tendency of the firms belonging to the fertilizers industry. The results showed that the industry was subject
to the law of increasing costs. He founded that, to get further support from the examination of the production
function, which revealed that the average productivity of labour exceeds its marginal productivity.. 
D’Souza & Megginson (1999) have studied concerning the financial and operating performance of
privatized firms during the 1990s. They made comparison about the pre and post privatization financial and
operating performance of 85 companies from 28 industrialized countries that were privatized through public
share offerings for the period from 1990 to 1996. They have noticed that the significant increases in
profitability, output, operating efficiency, dividend payments and significant decreases in leverage ratios for
the full sample of firms after privatization. They have also concluded that the capital expenditures increase
significantly in absolute terms, but not relative to sales and Employment declines, but insignificantly. As per
findings, they strongly recommended that privatization yields significant performance improvements. 
Raghunathan & Das (1999) have discussed in their paper regarding corporate performance of post-
Liberalization. They analysed the performance of Indian Manufacturing sector in the last 8 years since
liberalization on the parameters of profitability, liquidity, leverage and solvency. They also observed that the
solvency and profitability ratios were encouraging till 1996 they have been gradually diminishing after that
and this problem gets more pronounced when the EVA was calculated which showed that the Indian
Manufacturing sector has destroyed wealth, while the MNCs have generated wealth for their shareholders.
They have pointed out after the analysis; the poor corporate performance has led to an economic slowdown
and not the other way round and corporate raised funds during the blacken days of equity markets and ended
up investing these funds at below their cost of capital. In short, the outcome has been a prolonged economic
slowdown. 
Nitsure & Joseph (1999) have studied about, “Liberalisation and the Behaviour of Indian Industry (A
Corporate - Sector Analysis based on Capacity Utilisation), and examined the impact of economic reform on
productive capacity creation and utilization across various industries in the nineties. They analyzed the
determinants of capacity use such as credit flows, import liberalization, fiscal consolidation and demand
conditions, using panel 35 data for 802 firms for the period 1993-98 to suggest an optimum combination of
policies that is critical for realizing the unused capacity. They suggested that although substantial
achievements occurred initially in creation and utilization of capacities in the various industries, there was
significant room for further improvement in utilization. 
Rajeswari (2000) studied about the Liquidity Management of Tamil Nadu Cement Corporation Ltd.
Alangulam-A Case Study. She concluded from the analysis; the liquidity position of TANCEM was not
stable. After the comparative analysis regarding liquidity ratios, she has found there was too much of
liquidity in the first two years of the study period and also a very high degree of liquidity was also bad as
idle assets earn nothing and affects profitability. In short, she concluded that the liquidity management of
TANCEM is poor and is not satisfactory. 
Aggarwal & Singla (2001) have studied about developed a single index of financial performance through the
technique of Multiple Discriminate Analysis (MDA), by selecting 11 ratios and selected ratios used as
inputs. For the purpose of analysis they selected only those ratios, which was relevant in distinguish between
profit making units and loss making units in Indian paper industry. They concluded that, the model has
correctly classified 82.14 percent of units selected as profit making and loss marking. They mentioned in
their study the inventory turnover ratio, interest coverage ratio, net profit to total assets and earnings per
share are the most important indicators of financial performance. Also they suggested suggests that the
results of Multiple Discriminate Analysis could be used as predictor of future profitability / sickness. 
Sur (2001) studied in his paper about the Liquidity Management: An overview of four companies in Indian
Power Sector using the data for the period of 1987-1988 to 1996-1997. He had applied accounting
techniques of comparative analysis regarding the liquidity management in Electricity generation and
distribution industry. He revealed that the overall liquidity should be managed in such a way that not only it
should not hamper profitability but also its contribution towards increase in profitability should be positive.
Sur, Biswas & Ganguly (2001) have studied about the Liquidity Management in Indian Private Sector
Enterprises - A case study of Indian Primary Aluminium industry. From the analysis, they had summarized
that the overall performance regarding liquidity management at INDAL was better in terms of efficient
utilization of short term funds, whereas HINDALCO was unable to do so. They found that a very high
degree of positive correlation between liquidity and profitability in case of both the companies was a notable
feature, reflecting the favourable effect of liquidity on profitability. 

CHAPTER-3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. it may be understood
as a science of studying how research is done scientifically. So, the research methodology not only talks
about the research methods but also considers the logic behind the method used in the context of the
research study.

OBJECTIVES OF THE STUDY

1. To understand, to analyze and to suggest methods of improving profitability management.
2. To identify the key factors affecting the profitability.
3. To have an insight into the management of profit in an organization.
4. To examine the financial performance of the BM Hyundai for the period from 2015 to 2019.
5. To assess the working capital employed by the BM Hyundai.
6. To highlight the short comings in the area of finance with the aid of comparative analysis and common
size analysis funds flow analysis and to give recommendations with a view to increase efficiency of the
company.
 7. To identifying the financial strength and weakness of the company. 
 8. Analyze the future earnings of the company , based on these give the various suggestions. 

RESEARCH DESIGN:

Descriptive research is used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected. The researcher had to use fact and information already
available through financial statements of earlier years and analyse these to make critical evaluation of the
available material. Hence by making the type of the research conducted to be both Descriptive and
Analytical  in nature.

From the study, the type of data to be collected and the procedure to be used for this purpose were
decided.

Tools for Data Collection:

 Tool used to collect the secondary data was by a websites, books and financial statements of the
company.
 The conclusions and recommendations have been drawn based on through understanding of the
organization during the study. Case studies have not been developed due to time and data
availability constraints.
Data Collection:
Information has been collected from secondary data.
The whole research is based on secondary data.  
 Secondary research
 Literature searches
 Through internet
 Through Periodicals
Secondary Data: 
Secondary data collected through the magazines, newspapers, catalogue and the advertisement. 
These types of data were known as published data. Data which were not originally collected was called
secondary data. The first step in any research was the collection of secondary data. In this project, data was
collected from company records, internet and journals.
Sample Area:Dehradun 
Statistical Tools 
The collected data were classified and tabulated and analyzed with some of the statistical tools listed
 Percentage analysis 
 Line graph was used to explain the tabulation clearly 

CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION
ANALYSIS & INTERPRETATION OF DATA
LIQUIDITY RATIOS
Table1: Current ratio
Year
s Current assets Current liabilities Ratio

2015 288,997,580 189,006,552 1.53

2016 177,122,556 142,210,762 1.25
2017 206,490,630 148,633,390 1.39
2018 398,960,970 190,005,314 2.10
2019 391,339,953 276,101,207 1.42
Interpretation:
From the above graph it was analyzed that current ratio was decreased from 1.53 to 1.25,
increased to 1.39 and increased to 2.10 and again decreased to 1.42 .The current ratio is less than the rule of
thumb 2:1 except the year 2018.

Table2: Quick ratio

Year
s Quick assets Current liabilities Ratio

2015 69,334,778 189,006,552 0.37

2016 80,262,817 142,210,762 0.56

2017 99,258,431 148,633,390 0.67

2018 94,319,524 190,005,313 0.50

2019 109,757,257 276,101,206 0.40

Interpretation:
From the above graph it was analyzed that quick ratio was increased from 0.37 to 0.67 and
decreased to 0.40 it was due to improper maintenance of quick assets. The quick ratio was below the rule
thumb of 1:1 i.e. quick assets were less than current liabilities.

Table3: Net working capital

Years Net working capital Net assets Ratio

2015 99,991,031 325,654,257 0.31

2016 34,911,795 260,575,021 0.13
2017 60,668,199 287,272,474 0.21
2018 208,955,659 435,610,011 0.48
2019 115,238,248 352,622,327 0.33
Interpretation:
From the above graph it was analyzed that net working capital ratio had decreased from 0.31
to 0.13 in 2016, increased to 0.21 in 2017, increased to 0.48 and again decreased to 0.33. it was due to the
changes in working capital requirements.

LEVERAGE RATIOS
Table1: Debt ratio

Years Total debt Capital employed Ratio

26445274
2015 6 325654257 0.81
45255034
2016 6 260575021 1.74
51416159
2017 2 287272474 1.79
66864983
2018 4 435610011 1.53
67370925
2019 7 352622327 1.91
Interpretation:
From the above graph it was analyzed that the debt ratio mostly increased. It is due to
increase in additional funds required year by year.

Table2: Debt equity ratio

Years Total debt Net Worth Ratio

2015 264452746 61201711 4.32

2016 452550346 7940102 57.00

2017 514161592 -7955293 -64.63

2018 668649834 245159 2727.41

-
2019 673709257 88281982 -7.63
Interpretation:
From the above graph it was analyzed that the lenders contribution is more than the owners
contribution, in the years 2017 and 2018 there is no owner’s contribution. So, the debt equity ratio became
negative.

Table3: Capital employed to net worth

Years Capital employed Net Worth Ratio

2015 325654257 61201711 5.32

2016 260575021 7940102 32.82
2017 287272474 -7955293 -36.11
2018 435610011 245159 1776.85
2019 352622327 -88281982 -3.99

Source: Annual Reports 

Interpretation:
From the above graph it was analyzed that capital employed to net worth was 5.32%,
increased to 32.83% in 2016, became negative in 2017,2019 and in the year 2018 increased to 1776.85%
due to changes in the value of net worth of the firm.

ACTIVITY RATIOS
Table1: Inventory turnover

Years Cost of goods sold Average inventory Ratio

2015 239132131 234147889 1.02

2016 155574480 137597980 1.13

2017 102243876 83065442 1.23

2018 72877770 182464926 0.40

2019 406536335 264313376 1.54

Interpretation:
From the above graph it was analyzed that the inventory turnover ratio was very low in all the
years, due to excess inventory levels in all the years.

Table2: Debtors turnover  

Years Sales Debtors Ratio

2015 201686573 51412361 3.92

2016 130517437 54894708 2.38
2017 96920394 67056512 1.45
2018 124629659 73209660 1.70
2019 368853567 75541003 4.88
Interpretation:
From the above graph it was analyzed that in 2017 and 2018 debtors turnover ratio is very
low due to most of the goods were sold on credit.

Table3: Collection period

Years Debtors Sales Ratio

2015 51412361 201686573 91.86

2016 54894708 130517437 151.41
2017 67056512 96920394 249.07
2018 73209660 124629659 211.47
2019 75541003 368853567 73.73
Interpretation:
From the above graph it was analyzed that collection period increased up to 2017 and then
decreased, due to most of the goods were sold on credit debts are outstanding.

PROFITABILITY RATIOS
Table1: Gross profit ratio

Year
s Gross profit/loss Sales Ratio

2015 -37645558 201686573 -18.68%

2016 -25057043 130517437 -19.20%
2017 -5323482 96920394 -5.49%
2018 51751887 124629659 41.52%
2019 -37682768 368853567 -10.22%
Interpretation:

From the above graph it was analyzed that gross profit ratio was negative for most of the
years except the year 2018 it is due to inefficiency in producing goods.

Table2: Net profit ratio

Years Net profit/loss Sales Ratio

2015 -67413729 201686573 -33.46%

2016 -62633704 130517437 -47.99%

2017 -35256615 96920394 -36.38%

2018 -8199872 124629659 -6.58%

2019 -93637848 368853567 -25.39%

  Interpretation:
From the above graph it was analyzed that in all the years the net profit ratio is negative due
to over all inefficiency in the firm.

SWOT ANALYSIS

Hyundai SWOT analysis

Strengths Weaknesses

1. Excellence in vehicle safety and design proven by 1. Poor brand portfolio, leading to fewer sales
many awards 2. Low presence in the strongest U.S. vehicle market and
2. The 6th highest automotive brand reputation in the no presence in Japan’s vehicle market
world 3. Declining quality of company’s management
3. Effective research and development (R&D) 4. Product recalls damaging brand reputation
spending resulting in new innovative cars
4. Low cost to drive and durable cars
5. Strong presence in China’s market

Opportunities Threats

1. Improving U.S. economy 1. Increased competition

2. Timing and frequency of new model releases 2. Rising Korean Won exchange rates
3. Low fuel prices opening new markets for Hyundai3. Increasing government regulations may raise the costs
 CHAPTER-5
FINDINGS, SUGGESTIONS,
CONCLUSION
FINDINGS

 Cost of goods sold was more than the sales except the year 2018. So, the BM Hyundai. got gross loss in
most of the years.
 Operating loss decreased up to the year 2018 and then increased in the year 2019.
 The BM Hyundai. did not earned net profit in all the years.
 It had been maintaining high inventory levels for all the years.
 In most of the years debtor’s collection period was very high.
 Most of the funds rose through debts with high interest rates.
 Most of the funds were lost in operations.

LIMITATION OF THE STUDY

1.The use of estimates in allocating cost to each period. The ratios will be as accurate as the estimates.
2.The cost principal is used to prepare financial statements. Financial data is not adjusted for price
changes or inflation/deflation.
3.Companies have a choice of accounting methods( for example, inventory LIFO vs FIFO and
depreciation methods). These differences impact ratios and make it difficult to compare companies using
different methods.
4.Companies may have different fiscal year ends making comparison difficult if the industry is cyclical.
5. Diversified companies are difficult to classify for comparison purposes.
6. Financial statement analysis does not provide answers to all the users’ questions, Infact, it usually
generates more questions.

SUGGESTIONS

 BM Hyundai should adopt cost control measures by drawing inspiration from prospering sugar factories.
 BM Hyundai should reduce operating and administrative expenses, it will increase over all efficiency of
the firm.
 A high level of debt introduces inflexibility in the firms operations due to increaseasing  interference and
pressures from creditors. A high debt company is able to borrow funds on very restrictive terms and
conditions. So, it should raise owners funds.
 BM Hyundai can adopt forward integration strategy by opening retail outlets where its own sugar can be
sold. It increases revenues one hand and cash position on the other.
 CONCLUSION

The present study of “Working capital management In BM Hyundai,.” Was conducted with the help of
annual report. Various financial tools are used in the study from the ratio analysis it has been found out that
the average collection period of the company is high and capital gearing is low. To extent possible the study
has achieved its stated objectives. It is on the part of the company to accept the suggestions.

BM Hyundai Profitability position was deteriorated year by year, liquidity position also moderate, long
term solvency of the firm is also moderate due to high debts, the firm’s efficiency in utilizing assets is also
very low.

Finally the study helped me to acquire practical knowledge that was only over by books and papers alone. I
take up this opportunity to thank one and all for making this study a complete one.

BIBILOGRAPHY

BOOKS
 Financial Management I. M. Pandey Ninth Edition Vikash Publishing house Pvt ltd.
 Financial Management Theory and Practice   Prasanna Chandra Sixth Edition  TataMcGraw Hill
Publishing company.
 Management Accounting Principles and Practice R. K. Sharma    Sahashi K. GupthaEigth edition
kalyanipublishiers.
 Dr .S.N. Maheswari-financial management G.G.S. Indraprasathauniversity , new delhi.

WEBSITES

 www.cliffsnotes.com
 www.financial-education.com
ANNEXURE
Balance Sheet of BM ------------------- in Rs. Cr.
Hyundai  -------------------

Mar '19 Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 892.46 797.35 776.28 746.57 746.57

Equity Share Capital 892.46 797.35 776.28 746.57 746.57

Reserves 193,388.12 155,903.06 143,498.16 127,691.65 117,535.68

Net Worth 194,280.58 156,700.41 144,274.44 128,438.22 118,282.25

1,576,793.2
Deposits 2,706,343.29 2,044,751.39 1,730,722.44 1,394,408.51
4

Borrowings 362,142.07 317,693.66 224,190.59 205,150.29 183,130.88

1,781,943.5
Total Debt 3,068,485.36 2,362,445.05 1,954,913.03 1,577,539.39
3

Other Liabilities & Provisions 167,138.08 155,235.19 159,875.57 137,698.05 96,412.96

2,048,079.8
Total Liabilities 3,429,904.02 2,674,380.65 2,259,063.04 1,792,234.60
0

Mar '19 Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 150,397.18 127,997.62 129,629.33 115,883.84 84,955.66

Balance with Banks, Money at Call 41,501.46 43,974.03 37,838.33 58,977.46 47,593.97

1,300,026.3
Advances 1,934,880.19 1,571,078.38 1,463,700.42 1,209,828.72
9

Investments 1,060,986.72 765,989.63 477,097.28 495,027.40 398,308.19

Gross Block 39,200.71 42,344.99 9,819.16 9,329.16 8,002.16

Revaluation Reserves 24,847.99 31,585.65 0.00 0.00 0.00

Net Block 14,352.72 10,759.34 9,819.16 9,329.16 8,002.16

Capital Work In Progress 791.54 573.93 570.12 0.00 0.00

Other Assets 226,994.20 154,007.72 140,408.41 68,835.55 43,545.90

2,048,079.8
Total Assets 3,429,904.01 2,674,380.65 2,259,063.05 1,792,234.60
0

Contingent Liabilities 1,236,048.60 1,112,081.35 1,064,167.65 225,244.99 203,619.38

Book Value (Rs) 217.69 196.53 185.85 172.04 1,584.34

Source : Dion Global Solutions Limited

PROFIT AND LOSS 5 YEARS

 
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
 

  12Months 12Months 12Months 12Months 12Months

INCOME:

175518.2 152397.0
Sales Turnover 220499.32 4 163685.31 7 136350.80

Excise Duty .00 .00 .00 .00 .00

175518.2 152397.0
NET SALES 220499.32 4 163685.31 7 136350.80

Other Income 0 0 0 0 0

210979.1 174972.9
TOTAL INCOME 265100.00 7 191843.67 6 154903.72

EXPENDITURE:

Manufacturing Expenses .00 .00 .00 .00 .00

Material Consumed .00 .00 .00 .00 .00

Personal Expenses 33178.68 26489.28 25113.82 23537.07 22504.28

Selling Expenses 358.33 281.14 307.64 284.64 278.26

Administrative Expenses 23486.98 17409.04 14660.60 13739.44 11609.37

Expenses Capitalised .00 .00 .00 .00 .00

Provisions Made 75039.20 35992.72 29483.75 469.95 -112.16

TOTAL EXPENDITURE 132063.18 80172.18 69565.82 38031.10 34279.75

Operating Profit 17829.74 17680.28 16799.75 17454.10 14890.26

166799.7 137411.8
EBITDA 208076.02 1 151761.60 1 120511.81

Depreciation 2919.47 2293.31 1700.30 1116.49 1333.94

Other Write-offs .00 .00 .00 .00 .00

164506.4 136295.3
EBIT 205156.56 0 150061.30 2 119177.87

113658.5
Interest 145645.60 0 106803.49 97381.82 87068.63

EBT -15528.24 14855.17 13774.05 38443.55 32221.40

Taxes -8980.79 4371.07 3823.40 6212.39 5282.72

Profit and Loss for the

Year -6547.45 10484.10 9950.65 32231.16 26938.68

Non Recurring Items .00 .00 .00 .00 .00

Other Non Cash Adjustments .00 .00 .00 .00 .00

Other Adjustments .00 .00 .00 -19129.59 -16047.51

REPORTED PAT -6547.45 10484.10 9950.65 13101.57 10891.17

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend .00 1802.19 1683.81 2036.63 1941.26

Equity Dividend (%) .00 226.02 216.90 272.79 260.02

Shares in Issue (Lakhs) 89245.88 79735.04 77627.77 74657.00 7465.70

EPS - Annualised (Rs) -7.34 13.15 12.82 17.55 145.88

Rs (in Crores)