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HYUNDAI MOTOR COMPANY: COMPANY PROFILE

Hyundai motor company (Hyundai) is one of the worlds largest automobile manufacturers based

on Korea. The company, along with its subsidiaries and affiliates, designs, develops and

manufactures passenger and heavy duty automobiles, recreational vehicles, and host of related

parts. Hyundai also provides automobile maintenance services. The company markets its

passenger cars under sonata, Veracruz, santa Fe, Tucson, Matrix and H-1brands the company has

presence in 180 countries across north America East Asia and Europe. Its manufacturing plants

are located in Korea, china, India, US, Russia, Turkey, Czech Republic, and Brazil. Hyundai is

headquartered in Seoul, South Korea.

This SWOT analysis and company profile is a crucial resource for industry executive and anyone

looking to gain a better understanding of the companys business.

The Hyundai Motor Company: Company Profile and SWOT Analysis report utilizes wide

range of primary and secondary sources, which are analyzed and presented in consistent and

easily accessible format.

Hyundai had a loyalty rate of 49.5 percent, according to the Experian study edging out General

Motors and Ford-as well as major Japanese markers like Toyota. It was the first time the

Korean carmaker led the list, marking a significant turnaround for brand that was

once the butt of jokes, not a marquee that won repeat business.

Hyundais loyalty translated as the repurchase rate of its ownershas also helped drive the

brands market share to record levels,9.2 percent during the second quarter of this year, up form

7.9 percent a year earlier. The makers performance in the study also reflected well on its sibling

brand ,kia actually outscoring the Hyundai brand with a 47.9 percent loyalty rate.General motors,

which came in second in the Experian study had the second-highest loyalty rate, at 48.1 percent,

and also saw its market share grow by 0.5 points-to 19.6 percent during the second quarter of this

year.


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Ford was third in the latest Experian loyalty study, at 47.6 percent .but it also took six of the top

10 sports in terms of loyalty to specific products. That included the ford fiesta, third at 63

percent, and the fusion, fourth at 61 percent.

The product with the highest individual loyalty was the kia forte, according to Experian, at 68

percent. The makers quirky crossover the soul, was fifth at 59 percent, with its forte koup

ranking eighth at 57 percent.

Makers have become increasingly focused on brand loyalty in recent years. Repeat business not

only helps prop up sales and market share but also helps hold down marketing . Experts say it

can cost as much as 11 times more to conquest a buyer from a competing brand as opposed to

winning back one of your loyal owners more from the Detroit bureau:

SCOPE

Examines and identifies key information and issues about Hyundai motor company for

business intelligence requirements

Studies and present the company strengths, weaknesses, opportunities (growth potential)

and threats(competition).strategic and operational business information is objectively

reported

Provides analysis on financial ratios along with a competitor benchmarking section

The profile also contains information on business operations, company history, major

products and services, prospects, key competitors, key employees, locations and

subsidiaries

SYNOPSIS

The Hyundai motor company profile and SWOT Analysis report contains in depth

information and data about the company and its operation. The profile contains a company

overview, business description, financial ratios, competitor benchmarking data, SWOT analysis,

key facts, information on products and services, details of location and subsidiaries, plus

information on key news events affecting the company.


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REASONS TO BUY

Quickly enhance your understanding of the company

Gain insight into the marketplace and a better understanding a your competitorsbusinesses better

Recognize potential partnerships and suppliers

Obtain yearly profitability figures

According to this view, working capital is the total of current assets represented by long-term

and long term liabilities. This view places more emphasis on the quantitive aspect of working

capital rather than its quantitive aspect.

The argument given in support of this view is that as all current asset in the conduced of the

business operation it does not make any difference whether they are financed by long- term

funds or by current or short-term liabities

The other view gives more emphasis on the qualitive aspect rather than the

quantitive aspect of working capital. According ,the definition of working capital should be

based on the net- concept which means that working capital is excess of current assets over

current liabities. The view pin point the need for working fund which is represented by current

liabities are equal then it would mean that business has no working capital, in such situation the

current ratio will be 1:1 meaning thereby that the firm is operating on zero working capital basic.

In order to avoid the confusion between gross and net concept of working capital. The net

working capital will normally not change in current in liabilities because If there is an increase in

current liability, there is normally a corresponding increase in more item of current assets thus,

the net amount of working capital remains the same. Similarly, when there is a decrease in one

and more items of current assets and the difference between current assets and current liabilities (i.e., working capital ) will remain same.


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THEORETICAL ASPECT OF WORKING CAPITAL

Money that is tied up in inventory or many that customers still own to the company cannot be

used to pay off any of the companys obligation.

So, if a Company is not operating in the most efficient manner (slow collection),it will show upas an increase in the working capital

ROLE OF WORKING CAPITAL IN HYUNDAI

Hyundai, operating cannot be conducted merely on the basic if fixed capital {l..e, funds blocked

in fixed assets} in addition, a minimum level of working capital has also to be kept in order to

service as a working funds for conducting day to day operation smoothly.

1) To finance purchase of raw material and other stores.

2) To finance the entire process of converting raw material into and other direct factory

expenses.

3) To finance the credit sales.

4) To meet day-to-day expenses of petty nature

5) To meet unforeseen contingencies

The net working capital will normally not change in current liabilities because if there is an

increase in current liability, there is normally a corresponding increase in one more item of

current assets thus, then net amount of working capital remains the same. Working capital also

gives investors an idea of the companys underlying operational efficiency.

OPERATING CYCLE

Circulating capital (or current asset )circulates in conduct of business operation. Each operating

cycle being with a case-outflow and after a time-gap ends with a cash inflow. The process does

not cease there but another operating cycle with a fresh out flow starts and again ends with a

subsequent inflow of cash after time..The shorter is the time lag between the out flow and in flow

of cash.


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Working capital management involves management of its four components which are:

1) Cash and liquidity management.

2) Receivable management.

3) Inventory management

4) Management of current liabities.

TYPES OF WORKING CAPITAL

Working capital can be divided into two parts

1) REGULAR WORKING CAPITAL

2) VARIABLE WORKING CAPITAL


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MANAGEMENT OF CASH AND LIQUIDITY

THE ROLE OF CASH AND OTHER LIQUID ASSEST in HYUNDAI should never be under

estimated cash is the most liquid of all assets. It has already been explained that each operatingcycle starts with a cash flow and end with a cash flow and ends with a cash- inflow. In order to

start and complete a chain of operating cycle, One after the other adequate level of cash or liquid

assets must be maintained in business throughout the operating period. Cash includes coins,

currency notes, cheque, cash balance at bank. Beside cash liquid asset include some other near-

cash items which can be promptly dated or converted into cash: such as easily marketable

securities, banks fixed deposits, money at call or short notice etc. In the context a term called

LIQUIDITY is also used frequently.

PRACTICAL ASPECT OF WORKING CAPITAL

HYUNDAI MOTIVE FOR HOLDING CASHWHY SHOULD A FIRM HOLD CASH LIQUID ASSETS ?

This question is often asked in the context of formulation of cash management policies. In otherwords what should be the motive or objective of holding cash in business ?

The following three motives are usually suggested.

1) THE TRANSACTION MOTIVE

2) THE PRECAUTIONARY MOTIVE &

3) THE SPECULATIVE MOTIVE


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TRANSACTION MOTIVE

The basic objective of holding cash is to conduct current operation smoothly. Had there been

perfect harmony between cash-inflow and cash-outflow , holding the cash by business unitswould have become unnecessary of redundant, because the inflow in that case, would

automatically meet the outflow and thus the firm would convently operate on zero level of cash

quantum and timing of cash flow is unthinkable.

This necessities holding of cash to meet day-to-day expenses and other obligation claims

(purchase of raw-material, payment of wages, the firm should be ready to meet other current).

Moreover the HYUNDAI should be ready to meet other occasional cash-outflow interest, taxes,

dividends, repayment of loans amounts on maturity etc.

PRECAUTIONARY MOTIVE

HYUNDAI firms also prefer to hold cash {or near cash assets} in order to meet unforeseen

contingencies. The surplus liquidity {more than the bare minimum } serve as a safe guard

against any emergency, which may arise in future. Good liquidity would enable a firm to face

sudden financial crisis lasing for a short period. The example may be tight cash position in time

of strikes, accidents, plants-break-down, power failure etc.

THE SPECULATIVE MOTIVE

This motive of holding cash is debatable and controversial. One view is that to indulge in

speculation is a risky and hence business firms should refrain from activities, instead of bringing

wind falls may sometimes also give serves jolts to the business itself. The other view is that

holding of surplus cash and investing it in the purchasing high ranking and fast appreciating

corporate securities may bring in capital gains.


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ECONOMIC ORDER QUANTITY

It is that of order for an inventory item which balance carrying costs and ordering costs so that

the total costs are lowest. According to HAMTON, THE E.O.Q. means the size of order that will

result in the lowest costs of ordering costs and carrying costs for an items of inventory. In other

words it can be said that E.O.Q involves a trade- off between ORDERING COST OR

CARRYING COST.

RE-ORDER QUANTITY

After having ascertained the economic order quantity (E.O.Q) of an item inventory, the next

important step is know the optimum point of inventory level at which a fresh order for

replenishment be given. IN HYUNDAI, A fresh order, places when level of inventory is high

enough would. NO doubt, reduce the risk of being OUT OF STOCK, but the same it will

increase the cost of carrying surplus inventory. On the other hand, a fresh order placed when

high level of inventory: is very thin, would certainly reduce the carring costs of inventory: but

the same time, it would increase the risk of being out of stock.


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WORKING CAPITAL

Working capital should be based on the net-concept which means that working capital is excess

of current assets over current liabilities. The view pin point the need for working fund which is

represented by current liabilities are equal then it would mean that business has no working

capital, in such situation the current ratio will be 1.1 meaning thereby that the firm is operating

on zero working capital basic.

In order to avoid the confusion between gross and net concept of working capital

WORKING CAPITAL=CURRENT ASSESTS/CURRENT LIABITIES

YEAR 2009 2010 2011

CURRENT ASSESTS 28458037 34497384 54829962

CURRENT LIBITIES 8408360 12118312 15063238


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LIQUID ASSETS

Liquid asset are among the most basic form of financial resources used of consumers ,supplier

and investors. Essentially, a liquid asset is cash or any type of negotiable asset that can be

converted quick and easily into cash. In many instances, financial experts choose to classify

liquid assets as any asset that can be converted into cash within a period of twenty days.

Currency and coin are the two most obvious forms of liquid assets. Immediately recognized as

LEGAL TENDER for purchases and to settle outstanding debts, currency remains the single

most common of all liquid assets that are used on a consistent basis by retail customers. The

circulation of currency and coins are controlled by the financial arm of the country in question,

often a treasury or revenue department of the central government

LIQUID ASSESTS=CURRENT ASSESTS-TOTAL INVENTORY

YEAR 2009 2010 2011

CURRENT ASSESTS 28458037 34497384 54829962

INVENTORY 24851183 27656924 48527680


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LIQUID RATIO

Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow

ratio different analysis consider different assets to be relevant in calculating liquidity. Some

analysis will calculate only the sum of cash and equivalents divided by current liabilities because

they feel that they are the most liquid assets, and would be the most likely to be used to cover

short-term debts in an emergency.

LIQUID RATIO = LIQUID ASSESTS / CURRENT LIABITIES

YEAR 2009 2010 2011

LIQUIDASSESTS

290 22 22

CURRENT

LIABITIES

534.62 433.23 370.2


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CASH RATIO

A ratio of a companys cash and liquid assets to its total liabilities. A cash ratio is a measure of

companys liquidity and how easily it can service debt and cover short-term liabilities if the need

arises. As a result, potential creditors use this ratio in determining whether or not to make short-

term loans. It is also called the liquidity ratio and the cash asset ratio

CASH RATIO= CASH/CURRENT ASSESTS

YEAR 2009 2010 2011

CASH 26352552 22265218 30512522

CURRENT ASSESTS 28458037 34497348 54829962


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VARIABLE COST

FIXED COST

UNITS

TOTAL COST

In ACCOUNTING, the SUM of FIXED COSTS, VARIABLE COSTS, and semi-variable

COSTS. in the CONTEXT of investments, the TOTAL AMOUNT spent on a particular

INVESTMENT, including the PRICE of the investment itself, plus COMMISSIONS, FEES

other TRANSACTION COSTS, and TAXES.

The total economic cost of production and is made up of variable costs, which vary according tothe quantity of a good produced and include inputs such as labor and raw materials, plus fixed

costs, which are independent of the quantity of a good produced and include inputs (capital) that

cannot be varied in the short term, such as buildings and machinery. Total cost in economic

includes the total opportunity cost of each factor of production as part of its fixed or variable

costs

TOTAL COST


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RESEARCH METHODOLOGY

Well define objective from basic for any type of research project. There should be clear cut aim

for any project and this should provide an insight for the work to be carried out. Defining the

objective give more accuracy for study this in turn provide tangible results.

OBJECTIVE OF TRANING

The study on working capital is aimed to achieved the following objective:

1) To evaluate organization effectiveness of in terms of financial position and performance.

2) To evaluate the profitability

3) To evaluate the short-long term solvency.4) Relationship in various thing form unit to unit.

5) To evaluate the liquid position availability of the company.

6) How industry is useful for a common man.

7) Study about weakness, strength, opportunity, and difficulties.

RESEARCH METHODOLOGYThe research methodology can minimize the degree of uncertainty by reducing the probability of

making wrong choice among available alternative choices. It involves selection of suitable

decision. Therefore ,we can decided in decided in advances the method to be used in research

work, which may occur in the business functioning thats may affect research discovery of new

ideas for the problems under study, where greatly emphasized the design related for the purpose

of the research not based on hypothesis but it exploratory investigation is done with a view to

keep it flexible. The research methodology used in the present study consist of following:

1) Type of data collection,

2) Data analysis


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TYPE OF DATA COLLECTION

For the research two type of data are collected:

Primary data

Secondary data

PRIMARY DATA for the purpose of this study is collected from company executive by mean of

observation, discussion etc. THE SECONDARY DATA are collected from company records and

information provided by management.

KIND OF RESEARCH

The research done by:

Analytical research: In this research the researcher has to use facts or informationalready

available, and analyze these to make a critical evaluation of the material.

SAMPLE DESIGN:A complete interaction and enumeration of all the Annual reports of

HYUNDAY

SAMPLE DESIGN: Last 3 years financial statement


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DATA ANALYSIS

THE data collected from primary and secondary source are tabulated separately in the form of

table, to bringing about the accuracy for the study.

REFRENCE PERIOD

The period under the study HYUNDAI, is four accounting years from 2009-2011. The

accounting years from 2009-2011 is divided into in to 12 periods. In this report accounting

records have been taken on one year basic.


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KEY DEFINATION

WORKING CAPITAL = CURRENT ASSESTS/CURRENT LIABITIES

YEAR 2009 2010 2011

CURRENT ASSESTS 28458037 34497384 54829962

CURRENT LIBITIES 8408360 12118312 15063238

00.5

1

1.5

2

2.5

3

3.5

4

2009 2010 2011

Working Cmpital

Working Cmpital


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LIQUID RATIO = LIQUID ASSESTS / CURRENT LIABITIES

YEAR 2009 2010 2011

LIQUIDASSESTS

290 22 22

CURRENTLIABITIES

534.62 433.23 370.2

0

0.1

0.2

0.3

0.4

0.5

0.6

2009 2010 2011

Liquid Ratio

Liquid Ratio


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LIQUID ASSESTS = CURRENT ASSESTS- TOTAL INVENTORY

YEAR 2009 2010 2011

CURRENT ASSESTS 28458037 34497384 54829962

INVENTORY 24851183 27656924 48527680

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

2009 2010 2011

Liquid Assests

Liquid Assests


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CASH RATIO=CASH/CURRENT ASSESTS

YEAR 2009 2010 2011

CASH 26352552 22265218 30512522

CURRENT ASSESTS 28458037 34497348 54829962

0

0.2

0.4

0.6

0.8

1

2009 2010 2011

Cash Ratio

Cash Ratio


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Findings

STRENGTHA. The sales figures always increase, which is quite satisfactory.

B. HYUNDAI has recovered profitability for a very small satisfactory.

C. Sales of per employees are beneficial for company.

D.Net profit is good indicator of HYUNDAI financial position as it increasing over per year

WEAKNESS

A. Current assets of HYUNDAI are not properly used.

B. Over all the cost is increasing it means per year cost of production was increasing that is

not good sign for the company.

C. The liquid position of the HYUNDAI IS declining.

D. The average collection period is more.

E. Debtors were increasing rapidly which affects the financial position of the HYUNDAI


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SUGGESTION

Lastly, I would like to conclude that 4-6 weeks training will really prove helpful to my future

career as it helped me to gain corporate knowledge and provide opportunity to apply my

theoretical knowledge in the practice.

As we are already aware about that fact that no study can be perfect in such a short span

of time, but after analyzing the company financial position. It is clear that even in recessionary

period company is doing well and striving towards to active robust in near future. Hyundai is a

transformer division the staff under which worked were of very cordial nature. They gave me

proper guidance, when required during my training period. In fact, it was a nice experience for

me which will really help me in getting into a corporate world in near future

ANY STUDYCANNEVERBEPERFECTANDCANBEALWAYSASCOPEFORTHE

IMPROVEMENTINSTUDYOFSUCHALARGEORGANISATIONINJUST4-6WEEK

TIME.THE BIGGEST LIMITATION factor was the limited time. These results may not be suitable

for a large level.For further research the above limitation can be overcome by carrying out research on the

wider basic. This will help in providing more precise information and large area for the analysis,

which can benefit the major financial decisions.

On the basic of study of Hyundai. Following influence can be drawn regarding its

financial position. The calculation may it clear that, while the firm is strong in certain area its

particularly weak in certain areas.


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CONCLUSION

CASH RATIO

A cash ratio is a measure of companys liquidity and how easily it can service debt and cover

short term liquidity if the need arises. As a result, the cash position is less as compare to year

2009 which is bad of HYUNDAI

LIQUID ASSESTS.

The liquid position of HYUNDAI in 201 as compare to year 2009 & 2011 actively HYUNDAI

stocks, bonds, and mutual funds are liquid in the sense that they are easy to sell, but the price is

not guaranteed and could be less than the amount you paid to buy the asset.


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BIBLIOGRAPHY

financial management- shashi. k.gupta

Financial - I.M.Pandey

www.google.comwww.cadbury.com

www.Hundai. india/gwl.com
http://www.cadbury.com/http://www.cadbury.com/http://www.cadbury.com/


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ROYAL MOTORS GWALIOR PRIVATE LIMITED :,GWALIOR (M.P.)

BALANCE SHEET AS AT 31st March 2009

Sch CURRENT YEAR PREVIOUS YEAR

(Rs.) (Rs.)

SOURCES OF FUNDS

Shareholder's Funds:

Share Capital 'A' 3250000.00 3250000.00

Reserve & Surplus 'B' 4625883.30 3068374.32

Loan Funds:

Secured Loans 'C' 21381221.13 15183331.12

Unsecured Loans 'D' - 1251690.00

Deffered Tax Liability 126,509.00 157718.00

TOTAL Rs. 29383613.43 22911113.44

APPLICATION OF FUNDS

Fixed Assets: 'E'

Gross Block 11353547.70 9680429.70

Less : Depreciation 5826145.35 5190068.39

5527402.46 4490361.42

Investments - -

Currents Assets, Loans 'F'& Advance

A-Current Assets 28458037.69 17718986.43

B-Loans & Advance 3806533.66 5620747.46

TOTAL Rs. 32264571.35 23339733.89

Less : Current Liabilities 'G' 8408360.38 4918981.87

and Provisions

23856210.97 18420752.02

Contingent Liabilities and Notes 'T'

To The Accounts

TOTAL Rs. 29383613.43 22911113.44- -


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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING 31st MARCH 2009


(Rs.) (Rs.)

INCOME

Sales 'H' 173,877,677.34 141,492,701.15

Other Income 'I' 11,184,706.47 8,377,242.76

Closing Stock 'J' 24,851,183.00 14,347,228.00

TOTAL Rs. (A) 209,913,566.81 164,217,171.91

EXPENDITURE

Opening Stock 'K' 14,347,228.00 17,634,669.00

Purchases 'L' 177,996,034.08 132,434,695.83

Power , Fuel and Water 228,909.00 206,999.00

Rent Paid 120,000.00 84,000.00

Commiossion Paid 600.00 2,500.00

Repairs to Building 242,855.00 5,100.00

Repairs to Machinery 57,534.00 85,315.00

Compensation to Employees 'M' 2,586,665.00 1,392,540.00

Insurance Expenses 'N' 552,446.00 574,343.00

Workmen and staff welfare Expenses 1,723.00 1,314.00

Entertaiment Expenses 21,382.00 35,514.00

Sales Promotion 408,037.00 34,045.00

Advertisement 1,089,961.00 943,570.00

Travelling Expenses 'O' 180,349.00 97,314.00

Conveyance Expenses 8,180.00 15,589.00

Telephone Expenses 154,453.00 147,671.00

Festival Celebration Expenses 3,287.00 1,869.00

Rates, Taxes'P'

2,253,901.52 1,810,950.00Auditor's Remuneration 'Q' 43,967.00 25,344.00

Other Expenses 'R' 4,241,489.02 3,721,720.58

Total Rs.(B) 204,539,000.62 159,255,062.41

Profit Before Interest, Depreciation and Taxes- C- (A-B) 5,374,566.19 4,962,109.50

Interest 'S' 2,305,146.73 2,450,030.58

Depreciation 'E' 724,478.48 611,572.84

Profit Before Tax 2,344,940.98 1,900,506.08

Less : Prior Period Expenses 2,450.00 69,742.00

Less : Deffered Tax Liabilities/Assets 31,209.00 46,690.00

Less : Provision for Taxation 750,000.00 700,000.00

Less : Fringe Benefit Tax 60,000.00 25,220.00

Less : Income Tax Previous Year - 193,023.31

Less: Fringe Benefit Tax Pre.Year 6,191.00 -

Profit After Tax 1,557,508.98 959,210.77

Balance brought forward from 3,068,374.32 2,109,163.55

Previous Year

4,625,883.30 3,068,374.32


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BALANCE SHEET AS AT 31st March 2010


(Rs.) (Rs.)

SOURCES OF FUNDS


Share Capital 'A' 3,250,000.00 3,250,000.00

Reserve & Surplus 'B' 7,168,283.90 4,625,883.30

Loan Funds:

Secured Loans 'C' 31,281,859.34 21,381,221.13

Deffered Tax Liability 57,655.00 126,509.00

TOTAL Rs. 41,757,798.24 29,383,613.43


Fixed Assets: 'D'

Gross Block 15,776,089.80 11,353,547.70

Less : Depreciation 6,622,057.55 5,826,145.35

9,154,032.25 5,527,402.46

Investments - -

Currents Assets, Loans 'E'

& Advance

A-Current Assets 34,497,384.02 28,458,037.69

B-Loans & Advance 10,224,694.60 3,806,533.66

TOTAL Rs. 44,722,078.62 32,264,571.35

Less : Current Liabilities 'F' 12,118,312.63 8,408,360.38

and Provisions

32,603,765.99 23,856,210.97

Contingent Liabilities and Notes 'S'

To The Accounts

TOTAL Rs. 41,757,798.24 29,383,613.43


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(Rs.) (Rs.)

INCOME

Sales 'G' 249,354,841.37 173,877,677.34

Other Income 'H' 14,604,801.76 11,184,706.47

Closing Stock 'I' 27,656,924.00 24,851,183.00

TOTAL Rs. (A) 291,616,567.13 209,913,566.81

EXPENDITURE

Opening Stock 'J' 24,851,183.00 14,347,228.00

Purchases 'K' 245,720,690.22 177,996,034.08

Freight Inward 33,340.00 -


Rent Paid 240,000.00 120,000.00

Commiossion Paid 1,189.00 600.00



Compensation to Employees 'L' 3,584,593.00 2,586,665.00

Insurance Expenses 'M' 556,428.00 552,446.00



Sales Promotion 581,258.00 408,037.00

Advertisement 1,188,497.00 1,089,961.00

Travelling Expenses 'N' 183,512.88 180,349.00



Festival Celebration Expenses 19,028.00 3,287.00Rates, Taxes 'O' 2,314,339.00 2,253,901.52

Auditor's Remuneration 'P' 27,575.00 43,967.00

Other Expenses 'Q' 4,634,588.08 4,241,489.02

Total Rs.(B) 284,426,144.18 204,539,000.62


Interest 'R' 2,456,601.38 2,305,146.73

Depreciation 'D' 993,293.81 724,478.48


Less : Prior Period Expenses - 2,450.00

Less : Deffered Tax Liabilities/Assets 68,854.00 31,209.00

Less : Provision for Taxation 1,300,000.00 750,000.00

Less : Fringe Benefit Tax - 60,000.00Less : Income Tax Previous Year 31,516.84 -

Less: Fringe Benefit Tax Pre.Year 1,502.00 6,191.00

Profit After Tax 2,542,400.60 1,557,508.98


Previous Year

7,168,283.90 4,625,883.30


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ROYAL MOTORS GWALIOR PRIVATE LIMITED, GWALIOR (M.P.)

BALANCE SHEET AS AT 31st MARCH, 2011


(Rs.) (Rs.)

SOURCES OF FUNDS


Share Capital 'A' 3,250,000.00 3,250,000.00

Reserve & Surplus 'B' 9,086,614.26 7,168,283.90

Loan Funds:

Secured Loans 'C' 44,645,746.49 31,281,859.34

Unsecure Loans 'D' 8,739,117.00 -

Deffered Tax Liability 62,055.00 57,655.00

Total Rs. 65,783,532.75 41,757,798.24


Fixed Assets: 'E'

Gross Block 23,789,791.96 15,776,089.80

Less : Depreciation 7,532,265.96 6,622,057.55

16,257,526.00 9,154,032.25Investments - -

Currents Assets, Loans 'F'

& Advance

A-Current Assets 54,829,962.27 34,497,384.02

B-Loans & Advance 9,759,282.77 10,224,694.60

64,589,245.04 44,722,078.62

Less : Current Liabilities 'G' 15,063,238.29 12,118,312.63

and Provisions

49,526,006.75 32,603,765.99


To The Accounts

Total Rs. 65,783,532.75 41,757,798.24


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(Rs.) (Rs.)

INCOME

Sales 'H' 324517052.37 274308513.55

Other Income 'I' 17207831.72 15623832.24

Closing Stock 'J' 52475627.00 48517680.00

Total Rs. 394200511.09 338450025.79

EXPENDITURE

Opening Stock 'K' 48517680.00 27656924.00

Purchases 'L' 315732162.57 285850701.99

Freight Inward 102521 92461

Power , Fuel and Water 215812 206045

Rent Paid 657418 600000

Commiossion Paid 2752 2400

Repairs to Building 115638 95188

Repairs to Machinery 115014.00 125024.64

Compensation to Employees 'M' 3423721 3473839

Insurance Expenses 'N' 562825 560613

Workmen and staff welfare Expenses 5838 5754

Entertaiment Expenses 42715 35577

Sales Promotion 1342663 1057912.85

Advertisement 1027612 950795

Travelling Expenses 'O' 375747 291553.25

Conveyance Expenses 102541 89932

Telephone Expenses 247863 201034

Festival Celebration Expenses 26531 21731

Rates, Taxes 'P' 2867012 2695972

Auditor's Remuneration 'Q' 35715 27575

Other Expenses 'R' 7831767 6225518.88

Total Rs. 383350547.57 330267951.61

Profit Before Interest, Depreciation and Taxes- C- (A-B) 10849963.52 8182074.18

Interest 'S' 4753061.17 4341041.42

Depreciation 'E' 1173847.07 1036733.40

Profit Before Tax 4923055.28 2804299.36

Less : Provision for Taxation 1160000 840000

Deffered Tax Liabilities/Assets 28000 4400

Income Tax Previous Year 59321 41569

Fringe Benefit Tax Pre.Year -

Profit After Tax 3675824.28 1918330.36

Balance brought forward from 9086614.26 7168283.90

Previous Year

12762438.54 9086614.26


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(Rs.) (Rs.)

INCOME

Sales 'H' 274,308,513.55 249,354,841.37

Other Income 'I' 15,623,832.24 14,604,801.76

Closing Stock 'J' 48,517,680.00 27,656,924.00

Total Rs. 338,450,025.79 291,616,567.13

EXPENDITURE

Opening Stock 'K' 27,656,924.00 24,851,183.00

Purchases 'L' 285,850,701.99 245,720,690.22

Freight Inward 92,461.00 33,340.00


Rent Paid 600,000.00 240,000.00

Commiossion Paid 2,400.00 1,189.00



Compensation to Employees 'M' 3,473,839.00 3,584,593.00

Insurance Expenses 'N' 560,613.00 556,428.00



Sales Promotion 1,057,912.85 581,258.00

Advertisement 950,795.00 1,188,497.00

Travelling Expenses 'O' 291,553.25 183,512.88



Festival Celebration Expenses 21,731.00 19,028.00

Rates, Taxes 'P' 2,695,972.00 2,314,339.00

Auditor's Remuneration 'Q' 27,575.00 27,575.00

Other Expenses 'R' 6,225,518.88 4,634,588.08

Total Rs. 330,267,951.61 284,426,144.18


Interest 'S' 4,341,041.42 2,456,601.38

Depreciation 'E' 1,036,733.40 993,293.81


Less : Provision for Taxation 840,000.00 1,300,000.00

Deffered Tax Liabilities/Assets 4,400.00 68,854.00

Income Tax Previous Year 41,569.00 31,516.84

Fringe Benefit Tax Pre.Year - 1,502.00

Profit After Tax 1,918,330.36 2,542,400.60


Previous Year

9,086,614.26 7,168,283.90


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BALANCE SHEET AS AT 31st MARCH, 2012


(Rs.) (Rs.)

SOURCES OF FUNDS


Share Capital 'A' 3,250,000 3,250,000

Reserve & Surplus 'B' 1146524.78 9086614.26

Loan Funds:

Secured Loans 'C' 56715338.37 44645746.49

Unsecure Loans 'D' 15432132 8739117

Deffered Tax Liability 67122 62055

Total Rs. 76611117.15 65783532.75


Fixed Assets: 'E'

Gross Block 31726154.22 23789791.96

Less : Depreciation 1173847.07 7532265.96

30552307.15 1625.7526.00

Investments - -

Currents Assets, Loans 'F'

& Advance

A-Current Assets 66783218 54829962.27

B-Loans & Advance 7102231 9759282.77

64589245.04

Less : Current Liabilities 'G' 27826639 15063238.29

and Provisions

46058810 49526006.75


To The Accounts

Total Rs. 26611117.15 65783532.75


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A Summer Training Report

on

WORKING CAPITAL

SUBMITTED IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF MASTERS IN BUSINESS

ASMINISTRATION (MBA)

Submitted To: Submitted By:

JIWAJI UNIVERSITY Swati Paliya

M.B.A. III Sem.

SESSION 2011-2013

INSTITUTE OF TECHNOLOGY AND MANAGEMENT


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DECLARATION

Swati Paliya , student of master of business administration (M.B.A. FINANCE) here declare that

all information and facts mentioned in this report are actually on my own experience and study

with executive of the HYUNDAI Gwalior.

Date:..

Place: GWALIOR SWATI PALIYA

MBA (III semester)


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PREFACE

In the concluding part of my M.B.A. programme it is an excellent opportunity for me to do a

project study on WORKING CAPITAL in HYUNDAI.

A management student gain both theoretical and practical knowledge. The

theoretical and practical ideas cannot be learned an isolation. There has to be practical

application of these to understand how they can be applicable in the field of management.

The project work helps the student to develop his skills to analysis the problem and to suggest

alternative solution to evaluate them and to provide feasible recommendation. The project work

provide work provide expose to student to face live situation and also the experience to work

with outsider.

HOPE, this work done over a period of 45 days will go a long way in contributing to the

objective of HYUNDAI. For placing the right product at right time and at the right place.


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ACKNOWLEGEMENT

I thanks, further to MR. J.L. SHARMA (DIRECTOR, HYUNDAI.), for this cooperation during

this period

I also like thank specially, all staff members for this guidance and support during the completion

of the report.

Last but no least, thanks to my sincere our teacher, parents and friends which directly helped us

to bring this project into the final shapes.

SUBMITTED BY:

Date: Swati Paliya

Place: MBA III Sem.


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CONTENT

PARTICULARS PAGE NO.

1. COMPANY PROFILE 1-

2. THEORETICAL ASPECT OF WORKING CAPITAL 6-

3. PRACTICLE ASPECT OF WORKING CAPITAL 9-

4. RESEACH METHODOLOGY 17-

5. DATA ANALUSIS 20-

6. FINDINGS 24

7. CONCLUSION 25

8. SUGGESTIONS 26

9. BIBLOGRAPHY 28

10. ANNEXURE 29-


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PROFILE OF

Royal Motors Gwalior Private Limited

Name of the group Royal Group of Companies

Name M/s Royal Motors Gwalior Pvt.Ltd.

Head Office Naka Chandravadni, Jhansi Road, Gwalior

Date of Registration 21.12.1988

Registration No. 13915

Status Private LimitedTIN 23955304567

PAN AACCR4787N

Address of of Business Place Naka Chandravadni, Jhansi Road, Gwalior

Head Office Naka Chandravadni, Jhansi Road, Gwalior

Director Shri Hari Kant Samadhiya

Shri Viajy Kant Samadhiya

Shri J.L. Sharma

Franchises Name Hyundai Motors India Ltd

Introduction:

Said company established on date 21.12.1999 and running in Trading of Hyundai Cars and their

work shop at Naka Chandravadni, Jhansi Road, Gwalior


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Documents

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