COMPANY PROFILE

The Hero Moto Corp (previously Hero Honda) story began with a simple vision – the vision of a
mobile and an empowered India, powered by Hero Moto Corp (previously Hero Honda). This
vision was driven by Hero Moto Corp (previously Hero Honda)'s commitment to customer,
quality and excellence, and while doing so, maintain the highest standards of ethics and societal
responsibilities. Twenty five years and 25 million two wheelers later, Hero Moto Corp
(previously Hero Honda) is closer to fulfilling this dream. This vision is the driving force behind
everything that we do at Hero Moto Corp (previously Hero Honda).

We understood that the fastest way to turn that dream into a reality is by remaining
focused on that vision. There were many unknowns but we kept faith, and today, Hero Moto
Corp (previously Hero Honda) has been the largest two wheeler company in the world for eight
consecutive years. Our growth has kept compounding. The company crossed the ten million unit
milestone over a 19-year span. In the new millennium, Hero Moto Corp (previously Hero
Honda) has scaled this to 15 million units in just five years! In fact, during the year in review,
Hero Moto Corp (previously Hero Honda) sold more two wheelers than the second, third and
fourth placed two wheeler company put together. With Hero Moto Corp (previously Hero
Honda), the domestic two wheeler market was able to show positive growth during the year in
review. Without Hero Moto Corp (previously Hero Honda), the domestic market would have
actually shrunk. Over the course of two and a half decades, and three successive joint venture
agreements later, both partners have fine-tuned and perfected their roles as joint venture partners.
What the two partners did was something quite basic.

They simply stuck to their respective strengths. As one of the world's technology leaders
in the automotive sector, Honda has been able to consistently provide technical knowhow, design
specifications and R&D innovations. This has led to the development of world class, value - for-
money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on
the singular and onerous responsibility of creating world-class manufacturing facilities with
robust processes, building the supply chain, setting up an extensive distribution networks and
providing insights into the mind of the Indian customer. Since both partners continue to focus on
their respective strengths, they have been able to complement each other. In the process, Hero
Moto Corp (previously Hero Honda) is recognized today as one of the most successful joint
ventures in the world. It is therefore no surprise that there are more Hero Moto Corp (previously
Hero Honda) bikes on this country's roads than the total population of some European countries
put together! The company's meteoric growth in the two-wheeler market in India stems from an
intrinsic ability to reach out and come closer to its customers, with every passing year. Hero
Moto Corp (previously Hero Honda)'s bikes are sold and serviced through a network of over
3500 customer touch points, comprising a mix of dealers, service centres and stockists located
across rural and urban India. Hero Moto Corp (previously Hero Honda) has built two world-class
manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most
sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to
imagine that all this has happened in the span of just two and a half decades! The best is yet to
come. During the year in review, Hero Moto Corp (previously Hero Honda) powered its way in a
market that, for all practical purposes, was feeling the full effects of the economic slowdown in
India. With an economic recovery now clearly on the cards, Hero Moto Corp (previously Hero
Honda) is all set to ride into another summit. As Brijmohan Lall Munjal, the Chairman, Hero
Moto Corp (previously Hero Honda) Motors succinctly puts it, "We pioneered India's two
wheeler industry, we've steered it through difficult times; now it is our responsibility to set the
pace again.''

New Models The company has a large portfolio of brands, with the moneyspinners being mainly
Splendor Plus (the world's largest selling bike) and Passion. However, the company claims it was
the launch of the 150cc CBZ and 225cc KARIZMA which established Hero Moto Corp
(previously Hero Honda) as an inspirational brand. "The launch of CBZ and KARIZMA got us
into a different league altogether. Although the sales are just about 3,000 a month, it made us an
overall bike company”, Hero Moto Corp (previously Hero Honda) would launch a new model of
the KARIZMA by the end of current year, the Managing Director, Mr. Brijmohanlal Munjal,
said. Meanwhile, the company is yet to decide on the location of its proposed Fourth
manufacturing unit. “The feasibility study is on'', he said, adding that the new plant was likely to
come up in the next 18 months.

New launches are likely to help Hero Moto Corp (previously Hero Honda) gain a market
share in the coming quarters. Hero Moto Corp (previously Hero Honda) Motors Ltd, has
launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely to be phased out of the
market once the new model sells ``10,000 plus'' units per month. Sales Performance Hero Moto
Corp (previously Hero Honda) went against the grain and created a growth trajectory all of its
own. Sales of the company grew by over 11 per cent in volume terms and in value terms; they
grew by over 19 per cent. Effectively, this helped the company end the year with a market share
of around 60 per cent. This robust performance helped the company increase earnings margin
120 basis points—a remarkable feat, considering that elsewhere in the world, the automobile
industry went through its worst year in recent history.

Hero Moto Corp (previously Hero Honda)’s performance in its silver jubilee year helped it retain
its position as the world’s largest two wheeler company for the eighth year in a row. It also
helped the company cross the 25 million unit mark—becoming the first company in India to
reach this milestone. Last year, two new models were launched, namely CBZ XTREME and
HUNK to address super-style and economy segments. Passion pro has found its position firm
amongst Indian models, only next to Splendor, the largest selling bike in the world in terms of
sales performance. CBZ was re-launched as CBZ XTREME, in April 2007, with changes and
value additions to cater to specific needs of the customers. Reportedly CBZ XTREME is doing
well in its segments and has sold over 10,000 units in the initial months itself.

Hero Moto Corp (previously Hero Honda) has targeted a sale of over 3 million bikes for
the year 2009-10. This effort is supplemented by a major launch this year, in October end; this
bike will have some exclusive features and will be in the 200cc plus range. There are some
ambitious programmes of launching a new range of bikes with technical support from Honda in
the coming years. With a slew of such measures the capacity available at present locations can at
best support two-million production target at the existing plants. The company, therefore, is
looking at the possibility of setting up a third plant to meet the future demand and for which
techno-economic study is in progress.

New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To
increasingly understand him and make him part of our ongoing business. Customer related
initiative has been the increase of warranty period to three years since July 2008. This has
attracted a great deal of customer attention. During the year the company has added nearly a
hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16% during
the year 2008-09. We would endeavor to increase our reach to every corner of this country. Plans
for the future In the previous year, the domestic two-wheeler industry entered a period of de-
growth. However, this was arrested in 2008-09, largely on the back of Hero Moto Corp
(previously Hero Honda)'s performance. After the blip of last year, the two-wheeler industry
went back to a growth phase, largely driven by Hero Moto Corp (previously Hero Honda) and
exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of
5 per cent compared to a fall of 5 per cent in the previous year. The pace of growth was lower in
the domestic market, where the industry clocked sales of 7.43 million, a rise of only 2.60 per
cent. This, however, was a significant improvement over previous year when the industry had
shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the two wheeler
industry, and during the year in review, accounted for four fifth of sales.

Interestingly, for the second year in succession, scooters increased their share in the two-
wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years,
where the share of scooters in the two-wheeler pie had been shrinking. Changing lifestyles
among women, and the introduction of feature-rich, high-quality scooters possibly has much to
do with the revival in demand

The entry segment – made up of basic 100 cc bikes -Had started slowing two years ago, and
during the year in review, sales in this segment were down by more than 15 per cent. This could
be attributed to the fact that deluxe segment bikes have become affordable on account of a 4 per
cent excise cut, 1 per cent reduction in CST and the special package of reduction in excise duty
in December, which most manufacturers passed on to the consumers. The deluxe segment-made
up of value for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent.
The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from last year's
levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless,
this segment was still able to clock a growth rate in high single digits mainly because of the
excitement caused by a slew of new models that came into this segment during the year. The
bigger story, of course, is that buyers in small-town India and rural India, as well as employees
of the state and Central government, were relatively less affected by the slowdown, and this
benefitted the two wheeler industry.
The legend of Hero Moto Corp (previously Hero Honda)

What started out as a Joint Venture between Hero Group, the world's largest bicycle
manufacturers and the Honda Motor Company of Japan, has today become the World's single
largest two wheeler Company. Coming into existence on January 19, 1984, Hero Moto Corp
(previously Hero Honda) Motors Limited gave India nothing less than a revolution on two-
wheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust
of over 5 million customers, the Hero Moto Corp (previously Hero Honda) product range today
commands a market share of 48% making it a veritable giant in the industry. Add to that
technological excellence, an expansive dealer network, and reliable after sales service, and you
have one of the most customer- friendly companies.

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero
group's dynamism have helped HHML scale new frontiers and exceed limits. In the words of
Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will continue to make
every effort required for the development of the motorcycle industry, through new product
development, technological innovation, and investment in equipment and facilities and through
and through efficient management."

History of Company

1984

The Company was Incorporated on 19th January, at New Delhi. The Company Manufacture
motor cycles up to 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd.
(HCPL).

The Company entered into a technical-cum-financial collaboration agreement with Honda Motor
Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete
technical information and know-how and trade secrets and other relevant data.

Hero Moto Corp (previously Hero Honda) CD-100 is the first four stroke motorcycle to be
introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light
weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4
speed gear box, neutral and flasher indicators, etc. 15 No. of equity shares subscribed for by the
promoters, etc. In November, 119,99,985 No. of equity shares issued at par of which 71,99,985
shares reserved for allotment as under:

(i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur
Chand Investments (P) Ltd.
(ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and
(iii) 9,59,987 shares to friends and association of promoters. Out of the balance 48,00,000
shares, 2,40,000 shares were reserved for subscription by the employees of the
Company and 96,000 shares by business associates. The remaining 44,64,000 shares
were offered at par for public subscription during November.

1985

The Company embarked on its 2nd phase of expansion of increasing its installed capacity from
1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium and steel
components.

1986

36,00,000 rights equity shares issued at par in prop. 3:10.

1987

The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs 100
each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares. Another
3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures were to be
redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from the date of
allotment of the debentures

3,75,000 rights equity shares issued at par in prop.3:10

1989.

The Company introduced a new model "Sleek" during July.850 No. of equity shares forfeited.

1990

The Company was planning to launch a new model motor cycle-CD 100 SS sutiable to
semi-rural conditions. In the domestic market the Company was reported to have a market share
of 46%.- 850 forfeited shares reissued.

1994

The Company proposed to expand the capacity of existing plant at Dharuhera to 2,40,000 nos.
per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at Gurgaon
Industrial Estate was being set up.

The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of 1:4. The
Company also issued 28,557 number of fractional coupons representing 14,250 shares against
which shares shall be allotted to presenting the same for consolidation and allotment. The
Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85 crores
respectively due to growth in demand for two wheelers and declining inflation.

1995

14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical
Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period up to
the year 2004 which includes technology related to models of higher Engine displacement. The
Company allotted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on 7th
February, by way of capitalization of General Reserves.

The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares against
which the Shares shall be alloted on presenting the same for consolidation and allotment.

1997

Hero Moto Corp (previously Hero Honda) Motors has launched its newest motorcycle, the
Street, a 100 cc bike designed for use in congested urban traffic conditions. Hero Moto Corp
(previously Hero Honda) Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon,
near Delhi for the manufacture of the Honda Super Cub 100 cc step thro bike. Hero Moto Corp
(previously Hero Honda) has set up a new state-of-the-art plant, heralding a new phase of
development of motorcycle industry in India, to provide the most modern and technologically
advanced production facilities.

Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a plant
in Brazil for manufacturing hero winner scooters.

A new step thru model `Street-100' with unique feature was launched on 24th January.

1998

The company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, 4
lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh cumulative convertible
preference shares of Rs. 100 each with power to increase or reduce it from time to time. The
company further proposes to capitalise Rs. 19,96,87,500 from general reserve to share capital
through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will
be allotted and distributed to members of the company holding equity shares of the company in
the proportion of one bonus share for every fully paid equity shares of Rs.10 each. Motorcycles
major Hero Moto Corp (previously Hero Honda) is considering entry into scooters in
collaboration with partners, Honda Motors, after the Japanese company decided to walk out of
Kinetic Honda, their scooter venture with the Firodias of Pune. Honda Motors recently pulled out
of its joint venture with the Firodias in which it held a 51 per cent equity stake.

Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have
signed a five-year licence and technical assistance agreement under which KHML will continue
to receive the technical knowhow, critical vehicle parts and access to Honda's markets even after
the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL).

- The Company changed the paradigm in two-wheelers by launching the most powerful

and fast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system.

23,962,500 bonus shares issued in prop. 1:1.

1999

Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) and 20th Century Finance
Corporation Ltd have signed a Memorandum of Understanding (MoU) for financing of Hero
Moto Corp (previously Hero Honda) motorcycles.

The company, a joint venture between Honda Motor Company of Japan and Hero group of India
to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6 per cent
during the current fiscal. Leading two-wheelers manufacturer Hero Motors has formed a joint
venture with Briggs Stratton of US to develop and manufacture four-stroke engines for mopeds
and scooters in India, a top company. Honda Motor Company of Japan has decided to re-enter
the scooter market in India as also foray into three-wheelers in a joint initiative with its existing
joint venture company Hero Moto Corp (previously Hero Honda) Motors Ltd.

2000

Hero Moto Corp (previously Hero Honda) Motors Ltd. and Tata Finance Ltd. have signed a
national tie-up agreement. The Company is the largest manufacturer of motorcycles in the
country. The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April. Hero Moto
Corp (previously Hero Honda) Motors Ltd (HHML), has launched an upgraded version of the
existing step-through motorcycle - the Hero Moto Corp (previously Hero Honda) Street. The
Company was ranked as the 9th Highest Value Creator among 12 industry groups within the
Bombay Stock Exchange top 100 companies over a five year period (1994-99).

2001

Hero Moto Corp (previously Hero Honda) Motors Ltd. has launched a new 100cc motorcycle
named `Passion'. The Company has secured shareholders' approval for splitting one equity share
of Rs 10 each into five equity shares of Rs 2 each in the ratio of 1:5.

Hero Moto Corp (previously Hero Honda) Motors Ltd. has become the largest seller of
motorcycles amongst all Honda companies and ventures in the world by selling one million
motorcycles during the current financial year. Credit rating Agency Crisil has reaffirmed
outstanding `AAA' rating assigned to the proposed Rs 15 crore non-convertible debenture issue,
Rs 16 crore commercial paper programme and fixed deposit programme of Hero Moto Corp
(previously Hero Honda) Motors.

Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Moto

Corp (previously Hero Honda) Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst &
Young Entrepreneur of the Year (EOY) award here on September 27.

CLASSIFICATION OF THE INDUSTRY

The two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles.
Motorcycles: this segment has shown the best performance in the recent years. The market
leaders in this section are Bajaj Auto. TVS, Mahindra, Hero Moto Corp (previously Hero
Honda). [The splendor is the most popular segment among motorcycles.]

Two Wheeler Industry

It wasn’t an easy year for the two wheeler industry. Rising interest rates and the economic
slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the
course of the year, banks withdrew financing facilities from satellite towns. The share of
financing, which had increased rapidly to 50-60 per cent of the total retail sales by early 2007,
has now come down to below 30 per This came as a major setback for the two-wheeler industry.
Ongoing government investments very clearly emphasis inclusive growth through improved
connectivity, job-creation and improving quality of life. The rural road outlay has been upped by
close to 60 per cent, the budget for the Urban Renewal Mission has been hiked by 87 per cent,
and fund allocation to the ongoing National Highways program has been upped by 23 per cent.
Importantly, India has added fresh impetus to its flagship job creation program for rural India:
the National Rural Employment Guarantee Scheme. During 2008-09, this scheme, which
provides 100 guaranteed days of work a day for the country’s rural poor, provided employment
opportunities to more than 44 million households last year; a year ago, 33 million households
were covered. During the year, there have been important developments in two wheeler industry.
The competition has strengthened though there are hardly any new entrants into the industry.
There is an increasing emphasis on price and this has led to cost cutting efforts all across cent.
the industry, thereby, making the customer an ultimate beneficiary. The trend also saw
introduction of new motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate
that many more new models will be launched during the year and provide customers plenty of
choice at competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each
business has a tendency to taper and plateau after attaining a particular size. An annual growth
rate of 10-12 per cent over a period of time is extremely healthy. The TCS study rankings are
conducted at the motorcycle segment level to provide comparisons among similar groups of
motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Moto
Corp (previously Hero Honda) splendor plus (best standard motorcycle segment); Bajaj pulser
(best executive motorcycle segment); Hero Moto Corp (previously Hero Honda) karizma (best
premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser motorcycle
segment). "The relatively low score for the executive segment indicates that most manufacturers
have fallen short of meeting the high expectations of these buyers,".

Production, sales growth of the industry

The two-wheeler companies have been operating at high capacities due to high growth rates
between 2009 and 2008. The growth is expected to lead to increase in the capacities from present
52 lakh units to 65 lakhs per annum in the year 2009-10, whereas the actual production estimates
by that period at an estimated growth rate of 18% is only 60 lakhs. Charts showing two-wheeler
industry growth rates Demand

In India the two-wheeler provide an easy and popular mode of personal transport for the middle
classes. With public transportation system being inadequate and ineffective the demand for the
two wheeler is likely to rise. The two-wheeler sales are expected to touch the 5 million mark by
the end of the decade as against the annual sales of 35,49,271 in 2008-09. Technology With
liberalization and the increasing competition. The two- wheeler industry has witnessed
technological changes. The four- stroke engine is being introduced in place of the traditional
populations and fuel inefficient two stroke engine. The smaller capacity engine with the
electronic fuel injection is also being used. Bajaj auto is now feeling the need to increase its
technological competence. Wit the competition cashing in on the technological competence for
their collaborators. Emphasizes being laid on lighter and fuel- efficient vehicles. A class of
vehicle having fuel efficiency of a moped and sleekness and style of the motorcycles called
scooter is growing. The vehicles offer a fuel efficiency of 60-65 km p/h. They enter into new
segment, Bajaj Auto has come out with TVS with Scooty pep and Hero Moto Corp (previously
Hero Honda) has come out with a Pleasure and upgraded version of sleek. Government policy
The excise duty on two-wheeler , which has previous 10 percent to 30 percent according to the
engine capacity, was rationalized is only two categories size. 15 percent for 75 cc engine
capacity and 25 percent for above 75 cc engine capacity the excise duty structure has been left
untouched since the 1993-94 budget.

The Indian two-wheeler industry is experiencing a major shift in its shape and structure. The
established players in the industry are taking a hard look at their portfolio of products and are in
the process of reshuffling them to meet the expectations of customers. The beneficiary is of
course the consumer, who has an increased array of products to choose from. The last four-five
years have brought about a great change in the consumer preferences for two-wheelers. The
market leaders of yesteryears are being driven to maintain their leadership position in the
forthcoming years. Those who have had a great going in the last few years are fighting hard to
retain their new supremacy. The two-wheeler industry is perhaps the most happening place in
terms of new models launched, upgraded products and innovative marketing techniques. Gone
are the days of regulation when the production of scooters and motorcycles was limited to two or
three brands and the number of products produced was decided by the Government; today the
Indian two-wheeler market is highly competitive with numerous players who offer anything and
everything a consumer demands and that too at affordable price. From a sellers market where
one had to wait for a scooter for 12 years to the days when you can just walk into any showroom
and drive out in the vehicle of your choice, the market of two-wheelers in India has come a long
way. But this is only the beginning of the transformation.

Marketing and The Distribution

Like any other emerging country, India experienced the knock-on effects of the global crisis
during the year in review. The effects were felt through the monetary, financial and real
channels. Drying up of global finance impacted from the middle of the fiscal impacted domestic
capital finance; and corporate earnings came off peaks. In April 2009, Reserve Bank of India
predicted that the Indian economy's growth for 2008-09 would slow to 6.6 per cent, breaking an
excellent five-year growth sequence. There were two dimensions to the economic slowdown. In
the first half, inflation ran into double digits as a result of the global crude shock and the global
food grain shortage. To control inflation, the RBI clamped down on money supply, and reduced
liquidity in the economy. By the time inflation started coming under control, domestic interest
rates started shooting up. Meanwhile, the global crisis erupted, putting further pressure on
liquidity levels. By October 2008, slowdown was clearly apparent in export-intensive sectors,
both in the manufacturing and service side. By December, the slowdown turned into de-growth.
The cutback in demand from Europe and the US was so sharp that even a competitive rupee,
which devalued by around 12 per cent during the year, couldn't act as a buffer. By December
2008, the growth momentum of the first six months was lost. Planned investment projects were
shelved; live projects faced a shortage of funds as credit flows dried up. As money became
dearer, pay packets became slimmer and risk aversion grew both from the demand and supply
side. Compulsions of coalition politics at the Centre and the impending Lok Sabha elections
didn't help either, and slowed down reforms and implementation of projects, particularly in
critical sectors like roads, ports and power. The worst hit was the manufacturing sector. From the
second half of the financial year, the index of industrial production contracted on three
occasions, remained close to zero on two occasions, and was mildly positive only once. Two –
Wheeler Financing Though two-wheeler are the most preferred from of transport in India, the
fact remains that it is a lower end market product. Most two-wheeler manufacturer like Bajaj
Auto and kinetic engineering have set up their own finance company since organized financiers
do not think the returns are particularly attractive. The argument given by some financiers is that
the price of a Yamaha or Hero Moto Corp (previously Hero Honda) is so high that people prefer
to buy a second hand car instead. This is particularly true of small town where people desire to
own a car and they have the means the two wheeler is then only a second vehicle for the family.
MARKET MECHANICS: Since 1985, when the first Hero Moto Corp (previously Hero Honda)
it has been and instant hit. A mileage miser with just about adequate performance further backed
by image of Honda and Hero Cycles brand of aggressive marketing, it climbed up the sales chart
outselling every other motorcycle by ten of thousands every year. Over the years, company has
received its share of accolades, including the National Association of India Award against 200
contenders.
SEGMENTATION, TARGETING & POSITIONING

From the current segmentation, targeting & positioning and consumer surveys we found that our
client has targeted the following segments

♦ Congested areas of urban cities.

♦ Males/Females between the age group of 18-36

♦ Middle class people , mostly officials & executives The client analysis from our questionnaire
it was found that our client has targeted the right segment HHML is overlooking one feature in
bike which is its low maintenance cost and reliability (i.e. less chances of breakdown) which is
absent in its competitors. Therefore, in order to meet the sales target, two option are available
with the client, one is to redesign the bike and second is to reposition the bike as “Bike with one
time investment”. Since redesigning of bike may involve a big task and huge investment
therefore we recommended repositioning the bike.

Growth

The business growth of Hero Moto Corp (previously Hero Honda) has been phenomenal
throughout its early days. The Munjal family started a modest business of bicycle components.
Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000
bicycles a day. Today Hero Honda has an assembly line of 9 different models
of motorcycles available. It holds the record for most popular bike in the world by sales for Its
Splendor model. Hero Moto Corp (previously Hero Honda) Motors Limited was established in
joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently
the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006.
Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed
at girls. The Hero Group has done business differently right from the start and that is what has
helped them to achieve break-through in the competitive two-wheeler market. The Group's low
key, but focused, style of management has earned the company plaudits amidst investors,
employees, vendors and dealers, as also worldwide recognition. The growth of the Group
through the years has been influenced by a number of factors:
Just-in-Time

The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-
in-time inventory. The Group boasts of superb operational efficiencies. Every
assembly line worker operates two machines simultaneously to save time and improve
productivity. The fact that most of the machines are either developed or fabricated in- house,
has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory
principle has been working since the beginning of production in the unit and is functional even
till date.. This is the Japanese style of production and in India; Hero is probably the only
company to have mastered the art of the just-in-time inventory principle

Ancillarisation

An integral part of the Group strategy of doing business differently was providing support to
ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's
requirements and also a large number of other vendors, which include some of the better known
companies in the automotive segment. Employee Policy: Another Striking feature within the
Hero Group is the commitment and dedication of its workers. There is no organized labor union
and family members of employees find ready employment within Hero. The philosophy with
regard to labor management is "Hero is growing, grow with Hero." When it comes to workers'
benefits, the Hero Group is known for providing facilities, further ahead of the industry norms.
Long before other companies did so, Hero was giving its employees a uniform
allowance, as well as House Rent

Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical
check-ups, not just for workers, but also for the immediate family members.

Dealer Network

The relationship of Hero Group with their dealers is unique in its closeness. The dealers are
considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000
outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all
the corners of the country, visiting dealers and send back daily postcards with information on the
stock position that day, turnover, fresh purchases, anticipated demand and also competitor
action in the region. The manufacturing units have a separate department to handle
dealer complaints and problems and the first response is always given in 24 hours.

Financial Planning

The Hero Group benefits from the Group Chairman's financial acumen and his grasp on
technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the
highest labor productivity rates in the world. In Hero Moto Corp (previously Hero Honda)
Motors Limited, the focus is on financial and raw material management and a low employee
turnover.

Quality

Quality at Hero is attained not just by modern plants and equipment and through latest
technology, but by enforcing a strict discipline. At the Group factories, attaining quality
standards is an everyday practice - a strictly pursued discipline. It comes from an
amalgamation of the latest technology with deep-rooted experience derived from nearly four
decades of hard labor. It is an attitude that masters the challenge of growth and change - change
in consumers' perceptions about products and new aspirations arising from a new generation of
buyers.

Constant technology up gradation ensures that the Group stays in the global mainstream and
maintains its competitive edge. With each of its foreign collaborations, the Group goes onto
strengthen its quality measures as per the book. The Group also employs the services of
independent experts from around the world to assist in new design and production processes.
Diversification

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at
diversification. A considerable level of backward integration in its manufacturing
activities has been ample in the Group's growth and led to the establishment of the
Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components
and Munjal Showa Limited amongst other component-manufacturing units.

Then there were the expansion into the automotive segment with the setting up of Majestic Auto
Limited, where the first indigenously designed moped, Hero Majestic, went into commercial
production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with
global technology leader Steyr Daimler Puch of Austria. Hero Moto Corp (previously Hero
Honda) Motors was established in 1984 to manufacture 100 cc motorcycles. The Hero Group
also took a venture into other segments like exports, financial services, information technology,
which includes customer response services and software development. Further
expansion is expected in the areas of Insurance and Telecommunication

The Hero Group's phenomenal growth is the result of constant innovations, a close watch on
costs and the dynamic leadership of the Group Chairman, characterized by a culture of
entrepreneurship, of right attitudes and building stronger relationships with investors,
partners, vendors and dealers and customer

HISTORYABOUT THE CHAIRMAN

Brijmohan Lall Munjal – Seeding a Dream

"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The
founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation
entrepreneur. He is a man who started small, dreamt big and used a combination of grit and
perseverance to create one of the country's largest corporate groups and the World's No.1 Two
Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual start in
life. Around the time when the freedom movement in India was taking shape in the late 1920s,
he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now
in Pakistan). He was only six years old then. Thus began an extraordinary tale of courage and
perseverance. Brijmohan began his business story after partition in 1947, when he and his
brothers relocated to Ludhiana. The family set up a company that provided poor people with
basic transport (cycles). Three decades later, as India evolved, he added a second crucial chapter
which visualized affordable and technologically superior transport to millions of middle class
Indians. The rest is history.

Building Relationships When Brijmohan and his brothers started out, there was no concept of
organized dealer networks. Companies just produced, and most dealers functioned like traders.
Brijmohan changed the rules of the business by trusting his gut instincts; introducing business
norms that were ahead of their time, and by investing in strategic relationships. Brijmohan built a
series of bonds and networks with hundreds of family members, vendors, dealers and employees.
Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero
Group together. "Thanks to the relationships that we have nurtured so passionately in the Hero
Family, the younger generations of some of our bicycle dealers have become dealers of Hero
Moto Corp (previously Hero Honda). These relationships have survived through generations -
through bad times and good times'' the patriarch now reminiscences. Besides bonding with his
vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of
entrepreneurship amongst his employees, and today, 40 of his former employees are successful
entrepreneurs.

Staying Ahead Though not technically qualified in the conventional sense, few of his
contemporaries have understood the dynamics of technology better than Brijmohan Lall has. He
could always visualize the applicability of technology before others could. For example, in the
1980s, when all two-wheeler companies in India opted for two-stroke engine technology,
Brijmohan preferred a four-stoke engine - a technology that dramatically increased fuel
efficiency and reduced maintenance costs. This technology was one of the biggest reasons for
Hero Moto Corp (previously Hero Honda)'s stupendous success. Time and again, Brijmohan
managed to steal a march over his industry peers. For example, when Honda Motors of Japan
was looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order
initially as there were other more eligible and established suitors. Yet it didn't take long for the
astute Japanese to realize that the Hero Group and Honda had much more in common than earlier
perceived; there a sharp focus on financial and raw material management, and employee turnover
was low. Honda officials were also amazed to find that the Munjals were already practicing
"Just-in-time-inventory" at the time (JIT). It turned out that Brijmohan Lall's aspiration to
provide cheap transportation to India's poor by default ensured lean and costeffective operations.
This in turn increased vendor efficiency and led to near-zero inventories.

A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul
system - which stresses the sanctity of the teacher-pupil relationship - imbibed in Brijmohan a
strong sense of social commitment and responsibility. There is a special place in his heart for
Ludhiana, the city where he took roots. Today, Ludhiana is a modern, bustling city, but
Brijmohan has played no mean role in its evolution. Several schools and educational institutions
in Ludhiana owe their existence to the Munjal family. The Ludhiana Stock Exchange owes its
existence to Brijmohan's vision as does the Ludhiana Flying Club. He's also set up the not-
forprofit Dayanand Medical College and Hospital-an institute now rated as one of the best
medical colleges in India, in terms of infrastructure, quality of staff and alumni profile. In and
around Dharuhera, near the first Hero Moto Corp (previously Hero Honda) plant, Brijmohan and
his family have left their stamp of philanthropy. The Raman Kant Munjal Foundation - which
Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a very
modern and well-equipped 100-bed hospital at Dharuhera. The group has also adopted numerous
villages and provides education, vocational training, drinking water, roads, streetlights and
sewerage.
 The Board of Directors of The Hero Moto Corp (previously Hero Honda) Group
Comprises of : -

Mr. Brijmohan Lall Munjal Chairman

Mr. Pawan Munjal Managing Director

Mr. Akio Kazausa Joint Managing Director

Mr. Kazumi Yanagida Director

Mr. Satyanand Munjal Director

Mr. Om Prakash Munjal Director

Mr. M P Wadhawan Director

Mr. S P Virmani Director

Mr. O P Gupta Director

Mr. M. Sudo Director

Mr. S Toshida Director

Mr. N N Vohara Director

Mr. Pradeep Dinodia Director

Gen. ( Retd.) V P Malik Director

HERO MOTO CORP (PREVIOUSLY HERO HONDA) MISSION

Hero Moto Corp (previously Hero Honda)’s mission is to strive for synergy between technology,
systems and human resources, to produce products and services that meet the quality,
performance and price aspirations of its customers. At the same time maintain the highest
standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp
(previously Hero Honda) to new heights in excellence and helps the organization forge a unique
and mutually beneficial relationship with all its stakeholders.

VISION

Hero Moto Corp (previously Hero Honda) now the leader in the two wheeler industry. Leaders
are not born, they evolve over time. It all started on the auspicious. “Baisakhi Day” the 13th of
April 1984, when the Hero Moto Corp (previously Hero Honda) Motor Company joined hands.
On its journey to take on the No. 1 morale, Hero Moto Corp (previously Hero Honda) created
some prominent milestones….. This leadership has been achieved only because of its philosophy
to excel in all areas. In fact, passion to excel is a credo of the entire Hero Moto Corp (previously
Hero Honda) family and is a way of life in Hero Moto Corp (previously Hero Honda). The
changing Scenario of increasing competition and the entry of new brands has made the credo
even more relevant. It serves as a constant reminder to ensure excellence in providing service to
the customer. They are providing outstanding customer service. It is in keeping with Hero Moto
Corp (previously Hero Honda)’s own passionate commitment to provide ultimate customer
satisfaction. Today, they consistently meet and exceed all requirement on quality, cost and
delivery.

OBJECTIVES

Hero Moto Corp (previously Hero Honda)’s mission is to strive for synergy between technology,
systems and human resources, to produce products and services that meet the quality,
performance and price aspirations of its customers. At the same time maintain the highest
standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp
(previously Hero Honda) to new heights in excellence and helps the organization forge a unique
and mutually beneficial relationship with all its stake holders

ACHIEVEMENTS AWARDS AND ACCOLADES

Year Awards & Recognitions 2009

ET Awards for Corporate Excellence - Hero Moto Corp (previously Hero Honda) is the winner
of the “Company of the Year" award for 2008 - 09. NDTV Profit Business Leadership Award
2008 - Hero Moto Corp (previously Hero Honda) Wins the Coveted "NDTV Profit Business
Leadership Award 2008" Top Gear Design Awards 2008 - Hunk Bike of the Year Award NDTV
Profit Car India & Bike India Awards - NDTV “Viewers’ Choice Award” to Hunk in Bike
category India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards -
“Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector Asian Retail
Congress Award for Retail Excellence (Strategies and Solutions of business innovation and
transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car
India & Bike India Awards - Bike Manufacturer of the year Overdrive Magazine - Bike
Manufacturer of the year TNS Voice of the Customer Awards:

2008

No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium
motorcycle CBZ Xtreme

2007

The NDTV Profit Car India & Bike India Awards 2007 in the following category:

Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc
category) "Bike Technology of the Year" - Glamour PGM FI

"Auto Tech of the Year" - Glamour PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ
X-treme by Overdrive Magazine.
Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine “Most Trusted Company”
, by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1 standard motorcycle"
by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by
Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to
enter the Forbes top 200 list of world’s most reputed companies. No. 1 in automobile industry by
TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006:

Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey
2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company). Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006. Hero Moto Corp (previously Hero Honda) Splendor
rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during 2003-04 for two-
wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.The
NDTV Profit Car India & Bike India Awards 2006 in the following category:

Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc
category) Bike of the Year - Glamour (up to 125 cc category) NDTV Viewers' Choice Award to
Glamour in the bike category

2005

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the
'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI
National Award for Excellence (Second) in Cost Management 2004 in the private sector
category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth
creator for the period 1991-2005.

2004
Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10
Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance.
Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money.
Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as
the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI
National Award for Excellence in Corporate Governance 2004 by The Institute of Company
Secretaries of India.

2003

Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10
Indian companies). Most Respected Company in Automobile Sector by Business World. Bike
Maker of the Year by Overdrive Magazine.

2002

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading
Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET
Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company' category,
ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked
6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest Wealth Creating
Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for
Corporate Governance.

2001

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading
Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves
Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre
for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the category of
Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995
presented to Hero Moto Corp (previously Hero Honda) Motors Ltd. on being ranked 9th amongst
the most investor rewarding companies in India. 1995 National Award for outstanding
contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by
President of India). 1991 Economic Times-Harvard Business School Award for Corporate
Performance to Hero Moto Corp (previously Hero Honda) Motors Ltd.

AUTO INDUSTRY

The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world after
China. India’s two wheeler production is the third largest in the world after Japan and China.
India has a welldeveloped two wheeler market with around 25 million households owning two-
wheeler. The Indian two wheeler industry made a modest beginning in the early 1950 when
Automobile Product of India ( API ) started manufacturing scooter in India. Until 1958. API and
Enfield( motorcycle) were the only two in production. In 1948, Bajaj auto began trading in
imported Vespa scooter and the three – wheeler- finally, in 1960’s. it set up shop to manufacturer
them in technical collaboration with piggaio of Italy. The agreement expired in 1971. In the
initial stages, the scooters segment was regulated regime, foreign company was not allowed to
operate in India, and waiting time for getting Bajaj scooters was as high as 12 years. Java, and
escort. While the Enfield bullet was a four strokes bike, the Java and Rajdoot were two-strokes
bikes. The motorcycles industry was originally dominated by Enfield with 350 cc bikes. The
motorcycles industry was cc segment. The two wheelers segment was opened up to foreign
competition in the mid 1980’s which saw the entry of the Japanese manufactures into the count

Key Policies
A company that believes in maintaining ecological standards along with business standards.
"We must do something for the community from whose land we generate our wealth." -
Chairman Dr.Brijmohan Lall Munjal.

At Hero MotoCorp, our goal isn't limited to business but encompasses the broader spectrum of
serving humanity through social initiatives. Hero MotoCorp takes a stand as a socially
responsible enterprise respectful of its environment.

Hero MotoCorp has been strongly devoted not only to environmental conservation programs but
also expresses the increasingly inseparable balance between economic concerns, environmental
and social issues faced by business. A business must not grow at the expense of mankind but
must serve humankind at large.

Environment Policy
We at Hero MotoCorp have been committed to demonstrate excellence in our environmental
performance on a continuous basis, as an intrinsic element of our corporate philosophy
To achieve this we commit ourselves to:
 Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals and
strengthening the greening of supply chain.
 Continue product innovations to improve environmental compatibility.
 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
 Institutionalize resource conservation in the areas of oil, water, electrical energy, paints
and chemicals.
 Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.
Quality Policy
Excellence in quality is the core value of Hero MotoCorp philosophy.
We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:
 Innovation in products, processes and services.
 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.

Safety Policy
We believe that safe work practices lead to better business performance, motivated workforce
and higher productivity.
We shall create a safety culture in the organization by:
 Integrating safety and health matters in all our activities.
 Promoting safety and health awareness amongst employees, suppliers and contractors.
 Continuous improvements in safety performance through precautions be sides
participation and training of employees.
 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.

Vigil Mechanism / Whistle Blower Policy

Hero MotoCorp Limited (hereafter referred to as “HMCL” or “Company” in this document)
believes in promoting a fair, transparent, ethical and professional work environment. While the
HMCL code of conduct defines the expectations from employees in terms of their integrity and
professional conduct, the vigil mechanism defines the mechanism for reporting deviations from
the standards defined in the code.

Remuneration Policy
The remuneration policy of the Directors has been designed to keep pace with the business
environment and market linked positioning. The Remuneration & Nomination Committee
determines and recommends to the Board the compensation payable to Directors. Remuneration
for the Executive Directors consists of a fixed component and a variable component linked to the
long term vision, medium term goals and annual business plans.

Related Party Transactions Policy

Hero MotoCorp Ltd. (hereinafter referred to as HMCL or the company) recognizes that Related
Party Transactions can present potential or actual conflicts of interest and may raise questions
about whether such transactions are consistent with the Company and its shareholders’ best
interests and in compliance to the provisions of the Companies Act, 2013 and Clause 49 of the
Listing Agreement.
Corporate Social Responsibility Policy
The Board of Directors (the "Board") of Hero MotoCorp Limited (the “Company”) has adopted
the following policy and procedures with regard to Corporate Social Responsibility. The Board
may review and amend this policy from time to time subject to the recommendations of
Corporate Social Responsibility Committee.

Code of practices and procedures of fair disclosure of unpublished price sensitive

information
Code of practices and procedures of fair disclosure of unpublished price sensitive information
[Pursuant to Regulation 8(1) of SEBI (Prohibition of Insider Trading) Regulations, 2015]
[As approved by the Board of Directors of the Company at its Meeting held on May 7, 2015 and
applicable from May 15, 2015]

Policy On Material Subsidiaries

The Board of Directors (the "Board") of Hero MotoCorp Limited (the “Company”) has adopted
the following policy and procedures with regard to determination of Material Subsidiaries. The
Board may review and amend this policy from time to time.

Policy for Preservation of Documents & Archival

This Policy aims to preserve Documents /Records maintained by the Company either in Physical
Mode or Electronic Mode (hereinafter referred to as “the Documents”). This Policy has been
formulated in accordance with the Regulation 9 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). The
Policy shall come into effect from December 1, 2015.

Policy on Disclosure of Material Events by the Listed Entity

The Policy aims for disclosure of important and material events of the Company to the Stock
Exchange(s), where the equity shares of the Company are listed, to stakeholders in compliance
with the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (hereinafter referred to as the “Listing Regulations”) and SEBI
circular no. CIR/CFD/CMD/4/2015 dated September 9, 2015 (hereinafter referred to as the
“SEBI circular”). The Policy shall come into effect from December 1, 2015.

Dividend Distribution Policy

With respect to apportioning a share of profit to its shareholders, the Company endeavours to be
fair and consistent with its strategy, approach and decision. The management draws the
conclusion of distributing dividends after taking into accounta multitude of legal and financial
parameters including long-term earning capabilities, growth prospects, opportunity costs,
applicable laws and statutory covenants.

GREEN MANUFACTURING
A Mission To Maintain High Ecological Standards
At Hero MotoCorp we believe in sound and sustainable environmental practices.
Since inception we have cared for the environment by launching four stroke motorcycles in the
era when two stroke two wheelers were popular.

In this endeavor we have always been blessed and guided by our Chairman Emeritus
Dr.BrijmohanLal that 'We must give back to the society from whom we generate our wealth'. As
leaders in the automotive industry, we fully realized our responsibility to the fast changing
industrial environment and understand our role in Sustainable Development of the Nation.

Hero MotoCorp has introduced Green initiatives in the organisation in Product Development,
Manufacturing, Supply Chain and all the functions.At Hero we have taken several initiatives to
reduce Carbon, Water & Waste footprint.
WE CARE FOR THE ENVIRONMENT

Green Building
Our latest plants have been developed on the green building concept i.eNeemrana Manufacturing
plant, GPC, HGCIT facility Jaipur are LEED IGBC certified these are Hero’s one-of-a-kind-
garden factories. From efficient building envelope, to the Big Foot air handlers, to water and
energy optimisation - the Garden Factory demonstrates HMCL’s environmental aspirations.

Green Roof
Put together all are our plants cover 1,16,500sq meters of green Roof, the latest being 25000sqm
in 2016-17 at Vadodara. Hero's green roof helps to conserve energy by moderating the
temperature on the roof and within surrounding areas. It also helps to reduce the storm water
runoff volume and peak flow rate dramatically. The green roof can restore aesthetic and
ecological value of open urban spaces. It addition to this, it protects conventional roofing
systems by doubling the service life of the underlying waterproof membrane.

Green Bio walls and Green Houses

Our latest plants Green Houses with Green Roof, with Hydroponics technology, in which it
requires only 2% of water as compare to actual farming.By recycling carbon dioxide into the
greenhouse, we enhance the plants photosynthesis. The green walls Generates Oxygen and gives
back to work environment.

Sewage Treatment Plant

Hero ensures that sewage is biologically treated to attain efficacy. This treatment plant is
designed to accommodate up to 6 hours of holding and ensuring effluent is 100% treated and
recycled into soft water that is used in cooling towers.

Zero Liquid Discharge Plant

To prevent water pollution, Hero has also invested in an Effluent Treatment Plant which is
capable of treating waste water that contains degreasing chemicals, acidic/ alkaline nature,
plating waste, heavy metals and waste oil that is generated out of processes. The Waste water is
either re-used in general activities or recycled back to processes with help of reverse osmosis
process and multi effect evaporators thereby reducing the fresh water foot print.We recycle 90%
of our waste water back to the process using Zero liquid discharge platform. Balance 10% is
being reused for horticulture activities.

Rain Water Harvesting

All or plants are equipped with efficient rain water harvesting system which captures the rain
water runoff and recharged into the aquifer thereby improving the ground water levels with total
rain water harvesting potential of 25lakhs cubic meters which is much more than annual water
requirement. The Rain water Harvesting scheme extend up to the surrounding community and
villages with an objective to control the rain water runoff, maintain ground water levels hence
improve water security and minimise water logging / flooding.

Waste Food Recycling

Hero ensures hygienic disposal of municipal waste through its organic waste converter, which in
turn generates manure. This waste goes through 15 minutes of treatment and is then
homogenized and odour free. It is turned into compost in the next two weeks and finally is
available for landscaping and greening applications. The waste treatment helps in preventing
generation of methane which has 25 times more global warming potential as compared to CO2.

Paint Conservation
Along with preventing water pollution, Hero MotoCorp does its very best to prevent releasing
pollutants in the air as well. The company is gradually adopted water based painting system and
advanced robotic painting system which improves paint transfer efficiency. Our latest Vadodara
plant is provided with a unique feature of VOC control in the paint shop using the concept of
Regenerative Thermal Oxidizers (RTO) to treat the VOC before letting the emission into the
environment.

Energy Conservation
Company has taken several initiative towards conservation of energy and carbon reduction
during the year 2016-17
  Company has very aggressive plans for expanding its renewal energy base, total solar PV
capacity has been enhanced to 5.6 MW.In Fy 2016-17 itself we have added 3.0 MW
Solar power including 2.0 MW at Vadodara plant roofemission and 1 MW Solar Power
Plant at Haridwar plant. It will have positive impact on CO2 emission.
 100% LED lights are installed in all our latest plants and 40% of the conventional lights
of our existing plants have changed to LED.
 Closed type Cooling Tower at Dharuhera Plant having highly efficient cooling system
irrespective of ambient conditions with Energy reduction by 36%. Savings of 1.17 Lac
KWH/year
 Small capacity Centrifugal compressor have been installedat Dharuhera Plant replacing
screw type compressors resulting in energy reduction by 33% (Savings of 5 Lac
KWh/year).
 Energy Conservation at Gurgaon Plant expanding VAM by 150 TR., Reduced power
consumption by increasing LED lights, Occupation sensors in toilets, trip circuits for
ideal running machines, Replacement of AC’s with five star rating and VFD’s.
 Reduction in power consumption in Canteen & Admin block VRV control through RTC
and by installation of Air Conserve System in Plant Utility system at Neemrana Plant
resulting in combined saving of 16.4 Lac KWH

About We Care
At Hero MotoCorp, the principles of CSR are integral to the way we conduct our business. We
believe in 'Manufacturing Happiness' through our various factories, where man, machine and
nature work together in harmony to minimize environmental impact and develop a healthy
ecosystem. Our efforts focus on activities that enhance environmental capital, support rural
development and education, facilitate healthcare, create sustainable livelihoods and promote
sports and road safety awareness. We Care is our CSR Umbrella, under which we have four
flagship programmes – Happy Earth, Ride Safe India, Hamari Pari and Educate to Empower, that
are aimed at fulfilling the CSR vision to have a Greener, Safer and Equitable world.
 CSR Vision
 To have a Greener, Safer and Equitable World.
Greener
 Environment Sustainability, Sanitation & Hygiene Programs aimed at creating a Greener
and Cleaner World.

Safer
 A Road Safety initiative that aims to make Indian Roads safer by spreading awareness
about traffic rules and regulations.

Equitable
 Supporting Girl Child and School Student Education programs with high focus on Social
and Community Development.

CSR Awards

It is inspiring for us to get recognized for various CSR practices. Most notably,
our girl child education program, Hamari Pari and Ride Safe India - a road safety
awareness initiative have received wide acclaim at the national level.
 FINANCIAL REPORT
Composition of current Assets of phoenix motors
(All the amounts are in Cr)
Particulars 2013-14 2014-15 2015-16 2016-17 Avg.

Inventory 317.1 326.83 436.4 524.93 313.473333

Sundry
297.44 149.94 108.39 130.59 170.268333
Debtors
Cash and Bank 131.09 219.57 1907.21 71.52 394.195
Loans &
185.46 311.26 405.76 728.66 315.7
Advances
Other current
5.69 5.89 24.82 48.87
Assets 14.8116667
Total 936.78 1013.49 2882.58 1504.57

Composition of current Assets phoenix motors

(All the amounts are in Cr)

2000
1800
1600
1400
1200 2013-14
1000
800 2014-15
600 2015-16
400
200 2016-17
0
Inventory Sundry Cash and Loans & Other
Debtors Bank Advances current
Assets

The income statement is considered to be the most useful of all financial statements. It
prepared by a business concern in order to know the profit earned and loss sustained during a
specified period. It explains what has happened to a business as a result of operations between
two balance sheet dates. For this purpose it matches the revenues and cost incurred in the process
of earning revenues and shows the net profit earned or loss suffered during a particular period.
 The nature of Income which is a focus of the income statement can be well understood if
business is taken as an organization that uses “Input” to produce “Output”. The output of the
goods and services that the business provides to its customers. The values of these outputs are
the goods and services that the business provides to its customers. The values of these outputs art
the amounts paid by the customers for them. These amounts are called “revenues” in the
accounting. The inputs are the economic resources used by the business in providing these goods
and services. These are termed “expenses” in accounting.
Balance Sheet of Hero Motocorp ------------------- in Rs. Cr. -------------------
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 39.94 39.94 39.94 39.94 39.94
Equity Share Capital 39.94 39.94 39.94 39.94 39.94
Reserves 10,071.35 7,904.81 6,501.39 5,559.93 4,966.30
Networth 10,111.29 7,944.75 6,541.33 5,599.87 5,006.24
Secured Loans 0.00 0.00 0.00 0.00 302.16
Total Debt 0.00 0.00 0.00 0.00 302.16
Total Liabilities 10,111.29 7,944.75 6,541.33 5,599.87 5,308.40
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 6,857.99 5,926.16 4,697.98 3,761.52 4,427.29
Less: Accum. Depreciation 2,462.40 2,089.42 1,785.29 1,518.27 1,356.31
Net Block 4,395.59 3,836.74 2,912.69 2,243.25 3,070.98
Capital Work in Progress 465.05 605.40 712.55 854.11 62.09
Investments 5,889.85 4,266.37 3,154.11 4,088.77 3,623.83
Inventories 656.31 672.98 815.49 669.55 636.76
Sundry Debtors 1,561.87 1,282.80 1,389.59 920.58 665.00
Cash and Bank Balance 15.40 131.36 159.25 117.50 181.04
Total Current Assets 2,233.58 2,087.14 2,364.33 1,707.63 1,482.80
Loans and Advances 1,710.19 1,545.04 1,378.02 1,203.54 1,401.95
Total CA, Loans &
3,943.77 3,632.18 3,742.35 2,911.17 2,884.75
Advances
Current Liabilities 4,468.66 3,512.75 3,180.69 2,903.12 2,893.39
Provisions 114.31 883.19 799.68 1,594.31 1,439.86
Total CL & Provisions 4,582.97 4,395.94 3,980.37 4,497.43 4,333.25
Net Current Assets -639.20 -763.76 -238.02 -1,586.26 -1,448.50
Total Assets 10,111.29 7,944.75 6,541.33 5,599.87 5,308.40
Contingent Liabilities 480.68 650.44 816.42 487.63 502.00
Book Value (Rs) 506.33 397.85 327.58 280.43 250.70
Profit & Loss account of Hero Motocorp ------------------- in Rs. Cr. -------------------
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations
30,540.67 30,618.09 29,235.64 27,126.21 25,626.95
[Gross]
Less: Excise/Sevice Tax/Other
2,371.13 2,258.18 1,717.64 1,880.35 1,891.80
Levies
Revenue From Operations
28,169.54 28,359.91 27,518.00 25,245.86 23,735.15
[Net]
Other Operating Revenues 305.45 239.39 67.30 29.61 32.96
Total Operating Revenues 28,474.99 28,599.30 27,585.30 25,275.47 23,768.11
Other Income 522.43 391.12 492.74 446.38 398.38
Total Revenue 28,997.42 28,990.42 28,078.04 25,721.85 24,166.49
EXPENSES
Cost Of Materials Consumed 18,948.64 19,321.72 19,783.88 18,221.53 17,364.86
Changes In Inventories Of
63.17 -6.82 -29.97 8.36 32.80
FG,WIP And Stock-In Trade
Employee Benefit Expenses 1,396.01 1,319.56 1,172.87 930.04 820.92
Finance Costs 6.05 2.15 11.09 11.82 11.91
Depreciation And Amortisation
492.73 441.40 539.97 1,107.37 1,141.75
Expenses
Other Expenses 3,432.36 3,517.83 3,116.34 2,575.48 2,265.05
Total Expenses 24,338.96 24,595.84 24,594.18 22,854.60 21,637.29
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
Profit/Loss Before Exceptional,
4,658.46 4,394.58 3,483.86 2,867.25 2,529.20
ExtraOrdinary Items And Tax
Exceptional Items 0.00 0.00 -155.04 0.00 0.00
Profit/Loss Before Tax 4,658.46 4,394.58 3,328.82 2,867.25 2,529.20
Tax Expenses-Continued Operations
Current Tax 1,082.08 960.88 898.91 828.21 502.61
Less: MAT Credit Entitlement 0.00 0.00 0.00 -168.35 15.72
Deferred Tax 199.26 301.33 44.27 -238.39 -75.85
Total Tax Expenses 1,281.34 1,262.21 943.18 758.17 411.04
Profit/Loss After Tax And
3,377.12 3,132.37 2,385.64 2,109.08 2,118.16
Before ExtraOrdinary Items
Profit/Loss From Continuing
3,377.12 3,132.37 2,385.64 2,109.08 2,118.16
Operations
Profit/Loss For The Period 3,377.12 3,132.37 2,385.64 2,109.08 2,118.16
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
OTHER ADDITIONAL
INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 169.12 156.86 119.00 106.00 106.07
Diluted EPS (Rs.) 169.12 156.86 119.00 106.00 106.07
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 0.00 972.56 14.33 24.72 1,011.05
Indigenous Raw Materials 0.00 18,434.78 16.22 19.61 16,447.26
STORES, SPARES AND LOOSE
TOOLS
Imported Stores And Spares 0.00 7.78 7.23 8.74 7.48
Indigenous Stores And Spares 0.00 34.38 35.32 34.89 26.84
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 1,737.34 1,437.75 1,198.12 1,299.13 1,198.13
Tax On Dividend 353.69 292.69 223.76 220.79 203.62
Equity Dividend Rate (%) 4,250.00 3,600.00 3,000.00 3,253.00 3,000.00
Marketing mix of Hero Motocorp – 4 P’s of Hero Motocorp
By Hitesh Bhasin July 24, 2016
Hero Motocorp is a public automotive company dealing with the manufacture and sales of
scooters and motorcycles. Originally, the company was established in the year 1982 and was
called by the name of Hero Honda but in the year 2011, the company decided to split with its
Honda Group and hence a new company was formed by the name of Hero Motocorp.

Hero Motocorp is a company that has the guts to implement its clever ideas into hard reality.
This has been possible only because of the sheer determination of the company and its tendency
to lean towards technology that is of top-tier quality. Some of the main competitors of this
company are as follows-
 Bajaj
 Yamaha
Product in the Marketing mix of Hero Motocorp
The key focus of Hero Motocorp has been on introducing robust and steady products with the
use of high technology and vivid and visionary imagination. The foresight to realize the
aspirations of the customers and to anticipate the megatrends is a remarkable experience.

Although Hero Honda group has been associated with many scooters and motorcycles like the
Karizma, Splendor Pro, Hunk, Glamour, Passion Pro and Glamour F1, the company under its
name Hero Motocorp launched its first bike called Hero Impulse in November 2011. The next
year saw some very new products that had better mileage and drive ability along with improved
power. These new models were Ignitor, for the younger generation and Maestro, promoted as a
masculine scooter.
In the year 2013, the company updated fifteen products. These were Glamour FI, Karizma R,
Glamour, Passion Xpro, ZMR, Passion Pro, Hero Motocorp Super Splendor, HF Deluxe ECO,
Splendor iSmart, Pleasure, Xtreme and Splendor Pro. It introduced the technology of Engine
Immobilizer in Extreme and the integrated system of braking in Pleasure.

In the year 2014, Hero Motocorp added some new products in its kitty like the Xtreme Sports,
Splendor Pro Classic and new and better models of Pleasure, Maestro, Karizma R and ZMR.
Later the company also updated Splendor Pro and Passion Pro.

Place in the Marketing mix of Hero motocorp

Hero Motocorp has ventured into newer markets with the help of extensive expansion plans. By
penetrating into distant markets, they are on the verge of becoming the future of India. Hero
Motocorp has set up four plants for manufacturing purposes of two wheelers. In order to
maintain its hold in the two-wheeler category the company has set up a very efficient distribution
network. They have set up a network for sales and services with a minimum of 6000 dealerships
at most of the service points in all the parts of the country. It also has dealer-appointed retail
outlets at all important and strategic places.

Hero Motocorp has the intrinsic ability to reach the far and wide nook and corners of any place.
Earlier Hero Motocorp set up a chain of service workshops and made provisions so that its spare
parts could be easily available from the dealers and stockiest. The bikes are available through all
the dealers who in return are responsible for workshops, proper infrastructure and trained
employees.

Under new agreement with the Honda Group Hero Moto corp can now penetrate in to markets of
West Asia, Africa and Latin America. It can also take the help of any vendor at its convenience.
In 2014, Hero unveiled its plans to penetrate the Bangladesh market.

Price in the Marketing mix of Hero Motocorp

Hero Motocorp follows the policy of competitive pricing as in today’s market conditions it is
very difficult to follow exclusively the strategy involving skimming pricing. The company has
decided to implement the value added pricing policies under which the customers are provided
with the value for their money. Hero Motocorp is proud to announce that they are one of the very
few companies who believe in passing the benefit of any cost advantage to its customers.
Although the company has emphasized on qualitative products but still it has kept the prices
reasonable and affordable. Hero Motocorp has two wheelers of varying price ranges to suit the
needs of different sections of society.

Although some of their products are priced a little higher than their competitors, yet the buyers
prefer these products because of quality and fuel efficiency along with better mileage and
performance. The company is also set to introduce bikes priced at a premium rates which yield
higher margins and revenues. Along with these products, some reasonable and economically
priced products are also to be launched for low budget group of consumers. Due to its efficient
distribution network the company has been able to cut and absorb the excess costs resulting in
higher sales and revenues.

Promotions in the Marketing mix of Hero Motocorp

Hero Motocorp brand has a new and trendy identity that is vibrant and therefore represents its
new outlook. The colors black and red in the logo gives out a strong message of solidity, passion,
energy and confidence.

The brand has come out with a new anthem of duration two minute that focuses on creating an
emotional connection with all its viewers and customers. The ads are about the story involving
the struggle of a common Indian, how he overcomes them and turns into a true and successful
Hero.

Even the Tag Line –“Hum Mein Hai Hero” is apt and befitting showing that every person has a
hero inside him. All the advertisements related to Hero Motocorp have catchy tunes displaying a
strong message. These ads are shown at regular intervals on television, radio, newspapers,
magazines and even billboards.

Hero Motocorp has always been associated with sports for most of its promotional activities.
Previously the company was related to the Indian Open Golf Tournament and Hockey. Hero
Motocorp under its own brand name sponsored the tournament FIH Road to London in the year
2012.

Hero has always been associated with cricketing fraternity either for two nation tournaments or
for world cups. Hero Motocorp has also been sponsoring the hugely successful television
program MTV Roadies. For its promotional activities the company has appointed cricketer Irfan
Pathan and the famous actor Ranbir Kapoor and Hrithik Roshan as its brand ambassadors. At
present, actor Akshay Kumar can be seen in most of the ads of this company.

Why market share of Hero motocorp is decreasing in premium segment

By Hitesh Bhasin November 30, 2016

This article is by Guest Author – Chirag Gupta. Chirag is a B.E in IT and is doing his MBA in
international business with specialization in marketing. This article will become a part of our
Automobile marketing category.

It was year 2010 when after a successful marriage for more than 27 years Hero and Honda split
their ways and Hero MotoCorp Ltd (HMCL) was born. People waited like hell for the new bike
of the Hero which is going to serve the premium segment customers and their wait was over
when HMCL launched Hero Impulse. It brought with itself new dimension of biking to Indian
customers and it was India’s first Trans Road Bike in 150cc Segment a premium segment which
was doing good with bikes like Hunk, CBZ-Xtreme and Karizma in its pocket even facing tough
competition from bikes like Unicorn and Pulsar.

Nothing is permanent but ‘change’ and it has to change. Share of Hero MotoCorp has being
declining since September 2011 constantly. Possible reasons for the same can be one or all of
them.

1. Yamaha launched three bikes in premium segment with SZ-S, SZ-R and FZ-S. Yamaha
with their smart pricing strategy, radical looks /styling and youth appeal are slowly and
steadily eating up market share in premium segment.
2. Honda also launched new version of Unicorn named Unicorn Dazzler which is packed
with new looks targeting youth of the nation.
3. HMCL took a brave move and removed ‘kick starter’ from Hunk and CBZ-Xtreme. This
has resulted into shift of customers into bikes which are of same price range and with
kick start.

Even Yamaha removed kick starter from its Fazer bike but when its sales started dropping it
again launched bike with kick starter. HMCL bikes comes with tough and long lasting battery
which requires least maintenance cost but it is the perception of the Indians which needs to be
changed and it will take time. A kick by a ‘kick’ has been observed in the market share of
HMCL in premium segment after its removal.

A stitch in time saves nine, HMCL needs to quickly take measures to save its share in premium
segment by understanding the perception and need of the people before it’s too late to recover.
 HR OPERATIONS

Leading Indian two wheeler manufacturer Hero MotoCorp has appointed Sanjay Jorapur as
Chief Human Resources Officer. He will take complete charge of the company's HR function for
operations across India and global markets. Sanjay will be reporting to Pawan Munjal, Hero
Motocorp Vice-Chairman & Managing Director and will also be part of the Senior Leadership
Team at the company.

Sanjay will be joining Hero MotoCorp later in the month of September 2014. He brings over 20
years of experience and thereby will play a significant role in further strengthening Hero
MotoCorp's focus on innovative people-centric initiatives.

Prior to this, Sanjay was associated with Crompton Greaves (CG) as Executive Vice
President and Global Head of Human Resources and CSR. In addition, he has also held global
leadership roles within Honeywell in India and the US. In terms of education, he is a Computer
Science Engineer and holds a Masters in Personnel Management & Industrial Relations from
XLRI, Jamshedpur.

Announcing the new appointment on Wednesday, Pawan Munjal said, "As we strive to build a
truly global organization which promotes innovation and technological excellence, the
capability, depth and diversity of our talent pool and the strength of our people practices will be
the key to our continued success. I am pleased to have Sanjay join us and take charge of this
mandate. With his extensive domain knowledge and rich experience, he will drive these
initiatives to ensure that Hero becomes a global employer of choice."
 Country's largest two-wheeler maker Hero MotoCorp has appointed Sanjay Jorapur as
chief human resources officer for its operations in India and worldwide.
 Sanjay, who is scheduled to join the company later this month, would be part of the
senior leadership team at Hero MotoCorp and will report to manging director and CEO
Pawan Munjal, the company said in a release.
 Prior to taking up the new role, Sanjay was serving as the country human resources
director at Honeywell and member of India Executive Council. He also served as
executive vice-president and global head of human resources and CSR at Crompton
Greaves.
 "As we strive to build a truly global organisation which promotes innovation and
technological excellence, the capability, depth and diversity of our talent pool and the
strength of our people practices will be the key to our continued success", Munjal said.
 "As people of different nationalities and socio-cultural background join the Hero family,
we seek to build a world- class organisation in every sense of the term-policies and
processes, meritocracy and work-life balance.I am pleased to have Sanjay join us and
take charge of this mandate," he said.
 Sanjay, a computer science enginer and an alumni of XLRI Jamshedpur, has over 20
years of experience and would play a significant role in strengthening the company's
focus on innovative people-centric initiatives and processes, the release said.
 Sanjay's appointment follows the appointment of Markus Feichtner last year from
Austria's AVL to head its newly created division of New engines design and development
within Research and Development function.
 The company also brought in Rajat Bhargava from McKinsey and Company, to head its
Corporate Strategy and Performance Transformation function, the release said.
Balance Sheet of ------------------- in Rs. Cr. -------------------
Hero Motocorp
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 39.94 39.94 39.94 39.94 39.94
Total Share Capital 39.94 39.94 39.94 39.94 39.94
Reserves and Surplus 10,071.35 7,904.81 6,501.39 5,559.93 4,966.30
Total Reserves and Surplus 10,071.35 7,904.81 6,501.39 5,559.93 4,966.30
Total Shareholders Funds 10,111.29 7,944.75 6,541.33 5,599.87 5,006.24
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 0.00 302.16
Deferred Tax Liabilities [Net] 414.34 227.79 0.00 0.00 132.41
Other Long Term Liabilities 0.00 34.89 31.33 24.45 0.00
Long Term Provisions 75.30 84.44 65.62 49.98 30.16
Total Non-Current Liabilities 489.64 347.12 96.95 74.43 464.73
CURRENT LIABILITIES
Trade Payables 3,247.27 2,766.88 2,841.87 2,290.59 1,873.34
Other Current Liabilities 807.05 483.19 307.49 588.08 887.64
Short Term Provisions 39.01 798.75 734.06 1,544.33 1,409.70
Total Current Liabilities 4,093.33 4,048.82 3,883.42 4,423.00 4,170.68
Total Capital And Liabilities 14,694.26 12,340.69 10,521.70 10,097.30 9,641.65
ASSETS
NON-CURRENT ASSETS
Tangible Assets 4,310.73 3,717.85 2,818.29 1,897.27 1,891.76
Intangible Assets 84.86 118.89 94.40 345.98 1,179.22
Capital Work-In-Progress 270.72 288.34 712.55 854.11 62.09
Intangible Assets Under
194.33 317.06 0.00 0.00 0.00
Development
Fixed Assets 4,860.64 4,442.14 3,625.24 3,097.36 3,133.07
Non-Current Investments 1,349.00 1,019.36 863.78 812.88 614.47
Deferred Tax Assets [Net] 0.00 0.00 73.54 105.98 0.00
Long Term Loans And Advances 23.13 870.42 616.82 477.39 780.06
Other Non-Current Assets 1,008.31 73.68 60.19 47.81 36.44
Total Non-Current Assets 7,241.08 6,405.60 5,239.57 4,541.42 4,564.04
CURRENT ASSETS
Current Investments 4,540.85 3,247.01 2,290.33 3,275.89 3,009.36
Inventories 656.31 672.98 815.49 669.55 636.76
Trade Receivables 1,561.87 1,282.80 1,389.59 920.58 665.00
Cash And Cash Equivalents 15.40 131.36 159.25 117.50 181.04
Short Term Loans And Advances 143.06 521.46 567.66 550.31 553.55
OtherCurrentAssets 535.69 79.48 59.81 22.05 31.90
Total Current Assets 7,453.18 5,935.09 5,282.13 5,555.88 5,077.61
Total Assets 14,694.26 12,340.69 10,521.70 10,097.30 9,641.65
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 480.68 650.44 816.42 487.63 502.00
CIF VALUE OF IMPORTS
Raw Materials 0.00 0.62 16.92 24.45 36.70
Stores, Spares And Loose Tools 0.00 894.50 1,182.28 1,068.88 1,011.16
Capital Goods 0.00 162.04 145.98 226.67 106.09
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 0.00 272.30 403.57 350.77 203.09
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign
- - - - -
Currency
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - 776.74 720.18 465.54 620.24
Other Earnings - 1.42 1.49 4.55 4.22
BONUS DETAILS
Bonus Equity Share Capital 23.96 23.96 23.96 23.96 23.96
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted
288.11 486.06 615.34 653.22 254.48
Market Value
Non-Current Investments
1,229.43 748.73 329.94 229.59 62.25
Unquoted Book Value
CURRENT INVESTMENTS
Current Investments Quoted
123.08 303.23 346.01 986.31 98.80
Market Value
Current Investments Unquoted
4,419.80 2,987.22 1,984.33 2,351.11 2,057.55
Book Value
Profit & Loss
account of Hero ------------------- in Rs. Cr. -------------------
Motocorp
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations
30,540.67 30,618.09 29,235.64 27,126.21 25,626.95
[Gross]
Less: Excise/Sevice Tax/Other
2,371.13 2,258.18 1,717.64 1,880.35 1,891.80
Levies
Revenue From Operations
28,169.54 28,359.91 27,518.00 25,245.86 23,735.15
[Net]
Other Operating Revenues 305.45 239.39 67.30 29.61 32.96
Total Operating Revenues 28,474.99 28,599.30 27,585.30 25,275.47 23,768.11
Other Income 522.43 391.12 492.74 446.38 398.38
Total Revenue 28,997.42 28,990.42 28,078.04 25,721.85 24,166.49
EXPENSES
Cost Of Materials Consumed 18,948.64 19,321.72 19,783.88 18,221.53 17,364.86
Changes In Inventories Of
63.17 -6.82 -29.97 8.36 32.80
FG,WIP And Stock-In Trade
Employee Benefit Expenses 1,396.01 1,319.56 1,172.87 930.04 820.92
Finance Costs 6.05 2.15 11.09 11.82 11.91
Depreciation And Amortisation
492.73 441.40 539.97 1,107.37 1,141.75
Expenses
Other Expenses 3,432.36 3,517.83 3,116.34 2,575.48 2,265.05
Total Expenses 24,338.96 24,595.84 24,594.18 22,854.60 21,637.29
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
Profit/Loss Before Exceptional,
4,658.46 4,394.58 3,483.86 2,867.25 2,529.20
ExtraOrdinary Items And Tax
Exceptional Items 0.00 0.00 -155.04 0.00 0.00
Profit/Loss Before Tax 4,658.46 4,394.58 3,328.82 2,867.25 2,529.20
Tax Expenses-Continued Operations
Current Tax 1,082.08 960.88 898.91 828.21 502.61
Less: MAT Credit Entitlement 0.00 0.00 0.00 -168.35 15.72
Deferred Tax 199.26 301.33 44.27 -238.39 -75.85
Total Tax Expenses 1,281.34 1,262.21 943.18 758.17 411.04
Profit/Loss After Tax And
3,377.12 3,132.37 2,385.64 2,109.08 2,118.16
Before ExtraOrdinary Items
Profit/Loss From Continuing
3,377.12 3,132.37 2,385.64 2,109.08 2,118.16
Operations
Profit/Loss For The Period 3,377.12 3,132.37 2,385.64 2,109.08 2,118.16
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
 12 mths 12 mths 12 mths 12 mths 12 mths
OTHER ADDITIONAL
INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 169.12 156.86 119.00 106.00 106.07
Diluted EPS (Rs.) 169.12 156.86 119.00 106.00 106.07
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 0.00 972.56 14.33 24.72 1,011.05
Indigenous Raw Materials 0.00 18,434.78 16.22 19.61 16,447.26
STORES, SPARES AND LOOSE
TOOLS
Imported Stores And Spares 0.00 7.78 7.23 8.74 7.48
Indigenous Stores And Spares 0.00 34.38 35.32 34.89 26.84
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 1,737.34 1,437.75 1,198.12 1,299.13 1,198.13
Tax On Dividend 353.69 292.69 223.76 220.79 203.62
Equity Dividend Rate (%) 4,250.00 3,600.00 3,000.00 3,253.00 3,000.00