A STUDY ON FUNDS FLOW STATEMENT AT HERO MOTOCORP LTD

Abstract

Funds flow analysis is a vital financial diagnostic tool that reveals the movement of long-term financial resources within an enterprise over a specified accounting period. This paper presents a comprehensive study of the funds flow statement of Hero MotoCorp Ltd, India’s largest two-wheeler manufacturer, for the five-year period FY 2019–20 to FY 2023– 24. The study employs secondary data sourced from Hero MotoCorp’s audited annual reports and NSE/BSE disclosures. Funds flow statements were constructed and analyzed to track sources and applications of working capital, evaluate capital investment patterns, assess dividend and debt servicing policies, and examine long-term financial health. Key findings indicate that Hero MotoCorp consistently generates substantial funds from operations exceeding Rs. 5,600 crore in FY 2023–24, maintains disciplined capital expenditure aligned with product innovation cycles, and has progressively reduced long-term debt while sustaining high dividend payouts. The study provides actionable insights into how funds flow analysis can inform strategic financial decision-making in large manufacturing enterprises.