Annual Report of Hero Motocorp

Managerial Accounting Assignment on Hero Motocorp

Q.1 What is the company’s business and what are its major suppliers and customers?

Hero Motorcop has its business in the field of manufacturing of two wheelers and sales .It was started in 1984, consistently maintaining its position as the no.1 two wheeler company in the world for 11th consecutive year. Over 41.7 million two wheelers sold, and has a combined capacity of 6.35 million units .It has 17 different products across 100cc, 125cc, 150cc, 225cc and scooter category.

Major suppliers

• Munjal Showa

• AG Industries

• Sunbeam Auto

• Rockman Industries

• Satyam Auto Components

Major consumers

• Middle class people

• Youth(150cc and 225cc i.e cbz and karizma)

• Common man

• Government services(police)

Q.2 List the company’s assets, liability and equity items.

ASSETS

1. NON CURRENT ASSETS

• 1.fixed assets

a. tangible assets

b .intangible assets

c. capital work in progress

• 2.long term investments non current

• 3.long term loans and advances

• 4.other non current assets

2. CURRENT ASSETS

• 1.current investment

• 2.inventories

• 3.trade receivables

• 4.cash and cash equivalents

• 5.short term loans and advances

• 6.other current assets

EQUITY

SHAREHOLDERS FUNDS

• a. share capital

• b. reserves and surplus

LIABILITIES

1. NON CURRENT LIABILITIES

• a. long term liabilities

• b. deferred tax liabilities(net)

• c. long term provisions

2. CURRENT LIABILITIES

• a. trade payables

• b. other current liabilities

• c. short term provisions

Q.3 Who audited the financial reports? Is it a part of the big 4 auditing firm? If yes, which one?

A.F.FERGUSON & CO.

It’s not a part of the big 4 auditing firm.

Q.4 What is the auditor’s