CHAPTER-1

INTRODUCTION

1.1 INDUSTRY DETAILS

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 3 broad categories: Cars, two-wheelers and heavy vehicles.

I. The first automobile in India rolled in 1897 in Bombay.

II. India is being recognized as potential emerging auto market.

III. Foreign players are adding to their investments in Indian auto industry.

IV. Within two-wheelers, motorcycles contribute 80% of the segment size.

V. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).

VI. Tata Motors dominates over 60% of the Indian commercial vehicle market.

VII. 2/3rd of auto component production is consumed directly by OEMs.

VIII. India is the largest three-wheeler market in the world.

IX. India is the largest two-wheeler manufacturer in the world.

X. India is the second largest tractor manufacturer in the world.

XI. India is the fifth largest commercial vehicle manufacturer in the world.

XII. The number one global motorcycle manufacturer is in India.

XIII. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

The Indian economy has been influenced by impressive industrial resurgence and automobile industry is definitely one of them. The automotive industry has played a commendable role in the rapid industrial and economic growth of the country. Due to the economic liberalization a number of global automobile manufacturers have found India as one of the premier business destinations. With an annual growth of about 18 percentages in 2009, prospects of the Indian automotive industry are very bright. Overview of the automobile industry worldwide suggests

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that in the sectors of automobile manufacturing, automobile assembling and automobile components, India has come up with a huge potential market. Apart from being one of the largest car markets in Asia, India ranks 1st in the manufacturing of three wheelers and 2nd in two wheeler production. With more money spend on the research and developmental activities, more upgraded version of three wheelers would be hitting on the Indian roads.

An overview of the automotive industry of the country clearly indicates that the emergence of three wheelers as an effective mode of transportation has benefited millions of Indians. Three wheelers are not only used for carrying passengers but are also used as luggage carriers. In India the three wheelers usually run on diesel and petrol but of late in some of the cities CNG run three wheelers have also come up in large numbers. The three wheelers used for carrying passengers in India are usually referred as Auto-rickshaws. Most of the state governments in the country are supporting the operation of CNG run Auto-rickshaws and also three wheelers with four stroke engines as they produce lesser harmful emissions. It has been found that most of the three wheelers running on the roads of the country come with mileage of about 34-36 km per liter of petrol.

The three wheelers have successfully helped to overcome the dearth of jobs in the country. Numerous people could be seen driving auto-rickshaws on the roads of cities like Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and many more. Due to their simple construction and limited amount of investment the three wheelers as a mode of conveyance and commercial mechanism has gained popularity. What's more, their maintenance is also quite simple. Bajaj Auto has dominated the three wheeler market in the country for years. Several other companies like Piaggio Vehicles and Mahindra & Mahindra have made a late foray into this field. An overview of the current automobile market indicates that the tremendous demand of three wheelers in India and abroad has also allured several other automobile manufacturers like Honda India and TVS Motor to start producing the three wheelers.

Over the years the automobile industry in India has been growing rapidly. Along with the surging growth of the number of cars, the two wheelers and three wheelers have also come up in large numbers in this country. At present in India, Bajaj Auto is the market leader in the segment of three wheelers, the other two major manufacturers being Mahindra & Mahindra and Piaggio Vehicles. Seeking the immense potential of three wheeler market in India, more players are coming into the foray to launch their three wheelers. Very soon companies like Honda India and TVS Motor would be introducing three wheelers in India. Before buying a three wheeler, it is imperative to go through a relevant and proper three wheeler consumer guide that will help to find out the best of three-wheeler with the best of the options.

The three wheeler segment in India is currently small in size, but growing at a fair clip. These vehicles find use as passenger vehicles (auto-rickshaws) as well as small capacity commercial vehicles (pick-up vehicles) 3-wheelers are an important element of goods transportation network in the country and provide last mile connectivity in the metro and urban markets where entry of large commercial vehicles into city limits is increasingly getting restricted. It is also the ideal and most widely used mode for goods transportation in rural and semi urban markets. Three wheelers are also a cost effective mode for public transportation. Export markets include developing and under-developed countries like Bangladesh, Sri Lanka, African countries & Thailand.

Model of Three Wheelers:

In the recent years, the three wheeler segment has been witnessing the introduction of various new models that are equipped with some fantastic features. Bajaj Auto has got models based on diesel and CNG versions with different features on commercial and passenger three

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wheelers. One needs to determine his precise needs and go for the relevant model of three-wheeler.

Three Wheeler Finance:

The emergence of the several financial institutions has come as a boom to the numerous consumers of three wheelers. By availing an auto loan you can buy a brand new three wheeler. You can even get to buy a used three wheeler with an auto loan. Several auto financing companies' like ICICI, Associates Finance, FISAF, HDFC Bank. Are some of the popular names in the field of three-wheeler financing.

Three Wheeler Insurance:

There are various automobile insurance companies in India providing insurance for three wheelers. You should always insure your vehicle to get secured from any financial loss that may be incurred due to accident or theft. Some of the popular automobile insurance companies are: ICICI Lombard, Bajaj Allianz, New India Assurance Co., National Insurance Company, HDFC Chubb etc.

Three -Wheeler Maintenance:

It has been found that three-wheeler maintenance can effectively increase their performance. You must follow the basic three wheeler maintenance tips in order to ensure proper functioning of the automobile. Regular checking the engine oil, removing dirt from the braking system and checking the level of brake fluids and proper check of the air pressure of the tires would certainly enhance the work life of your vehicle.

Eco Friendly Three Wheeler Engine:

Apart from the diesel engines, three wheelers are also available with CNG engines and LPG engines that are known for emitting lesser harmful gases and thus would be preferred.

Safety Tips:

Knowledge about the safety tips is quite essential for the safety of the vehicle and the occupants. You should know in detail about all the rules and regulations of driving on the Indian roads to enjoy hassle free driving of a three wheeler.

Three Wheeler Manufacturers

The two and four wheelers are quite a hit all around the world. While the two wheelers have undergone significant improvement and transformation resulting in categories like scooters, scooter, mopeds and motorcycles, the four wheelers too have come up in different shapes, size, design and forms. The cars have evolved into so many forms with light commercial and heavy commercial vehicles too making deep inroads into the global automobile markets. However, it is the three wheeler segment of the automobile that has lagged behind its other counterparts. No wonder, as against them, the number of popular three wheeler manufacturers is quite limited and in India, one comes across only three leading three wheeler manufacturers. The leading three wheeler manufacturers in India are Bajaj Auto, Mahindra & Mahindra and the Italy-based Piaggio. While Bajaj Auto is a leading name in the Indian two wheeler segment, Mahindra & Mahindra is known more for its sports utility vehicles and jeeps like Bolero and Scorpio.

In the three wheeler segment, the classification is broadly in terms of carriage and passenger vehicles. Since the former does have a very limited capacity to carry goods and is not preferred by many, the three wheeler manufacturers are more into the passenger three wheelers. Bajaj Auto has a range of models for passenger three wheelers namely RE 2S, RE

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4S, RE 4S CNG, RE 4S LPG, RE Diesel and RE Diesel Mega while its existing carriage three wheeler is called GC 1000.

Mahindra & Mahindra has got the Champion range of three wheelers. There are Champion pick up and Champion delivery vans while the Champion Passenger carrier is mostly seen in the western parts of the country. The Alfa three wheeler carriages of the M& M has a wide and tall cabin, heavy duty gear box, unique designed chassis and hydraulic shock absorbers.

The Italian auto major Piaggio manufactures Ape 50 in association with Bajaj Auto at Pune with a 150cc engine. This three wheeler has different body forms and matches the specifications of various countries wherever it is produced. TVS Motor has recently entered the fray with its own model of a three wheeler and with the market recording an impressive 18% CAGR rate over the last fiscal, the three wheeler manufacturers still have plenty to laugh about.

Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. Every other day, we have been hearing about some new launches, some low cost cars – all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9 percentages, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs.

Over the years, the world has been witnessing fantabulous development in the sector of automobile industry. With their advanced engineering techniques, the major auto giants like Mercedes, Ford Motors, General Motors, Audi, BMW, Hyundai, Mitsubishi etc have come up with some of the most sophisticated vehicles that a human mind could have hardly imagined just a few years ago. The global automobile manufacturers have found huge potential markets in a number of developing countries. It is not only the cars, consumer vehicles and two wheelers that are sold in these various countries in large numbers, but the three wheeler market is also quite big in these nations. You will get to see innumerable three wheelers running on the roads of various Southeast Asian countries like India, Thailand, Sri Lanka, Pakistan, Philippines, Nepal, and Bangladesh etc.

There are a number of reasons that have resulted into the proliferation of the three wheelers in umpteen countries. Three wheelers are quite economical in terms of manufacturing and maintenance. They have also earned huge popularity due to their easy maneuvering capabilities through the narrow lanes that are prevalent in most of the developing countries. It is not that three wheelers are used only in the developing nations.

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1.2 DETAILS OF FIRM

MISSION:

To become a market leader in light transport vehicle segment and achieve the status of world class Company which manufactures and markets a wide range of high quality products to the total satisfactions of customers in the domestic and overseas market by ensuring:

1. Low cost of manufacture2. Highly profitable growth 3. Sustainable domestic and global competitiveness 4. Maximum stake holders satisfaction and pride 5. Business ethics

Though a continuous improvement of process & focus on:1. Total quality2. Resource productivity3. Technology 4. Cost effectiveness

And by creating an interactive professional environment of trust, openness, self confidence and commitment which encourages team effort among the stakeholders, suppliers and dealers for profitable venture.

VISION:

“TO BE THE NO.1 AND THE MOST PROFITABLE GLOBAL PLAYER WITH WORLD-CLASS QUALITY AND TECHNOLOGY LEADERSHIP IN THE LIGHT TRANSPORT VEHICLE SEGMENT OFFERING THE TRANSPOTATION SOLUTION TO SATISFY ULTIMATE CUSTOMER NEEDS.”

CORPORATE PROFILE:

Today, when you see or travel by the convenient 'chhakada' you rarely realize who invented this amazing people-friendly transportation vehicle. Well, we take pride in mentioning our founder’s name – the Late Mr. Jagjivanbhai Karsanbhai Chandra. Back in the 1970’s, when transportation was a crucial problem especially in rural areas, he decided to blaze a new trail. He was thinking of an affordable mode of transportation which can benefit rural folks of Saurashtra. The road conditions were not good but the need for transportation was increasing day in and day out. After thorough research and planning, he came up with a vehicle which was skillfully engineered from a motorcycle. And this is how the first 'chhakada' was developed which later became a way of life for the people of Saurashtra.

The improvements in technologies were done from time to time to make it a sturdy and comfortable vehicle. And like father like son, Mr. Jayantibhai Chandra also joined this mission. He took his illustrious father’s vision further. He introduced diesel ‘chhakada’ with many new features, and soon 150,000 'chhakadas' were rolling all over Saurashtra making it easy for passengers. Our passion did not end with success of 'chhakada'. The Group’s main focus was now to engineer similar product for semi-urban and urban areas. Soon, 'Shakti' was on the road which proved to be a runaway success and other vehicles like Half Tonner, Commercial 3-wheeler and more were also introduced under the brand name of shakti.

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What’s more, in the last three years, the production and turnover has doubled. Today the combined turnover of the Atul Group is approximately Rs. 1.5 Billion (US $30 Million) and it is achieved only because of the far-sightedness of Late Mr. Jagjivanbhai Karsanbhai Chandra and unending efforts of Mr. Jayantibhai Chandra. Thanks to them, the Atul Group of Industries is pronounced as a leading manufacturer of three-wheeled commercial vehicles in Gujarat.

GROUP COMPANIES:

Atul Auto Limited (Manufacturers of Diesel 3-Wheelers)

Atul Motors Pvt. Ltd. (Marketing of Maruti Range of Cars & 4-Wheelers)

Atul Auto Agencies (Distributors of Honda 2-Wheelers)

Atul Automotives (Distributors of Mahindra LCVs)

Atul Petroleums (Dealing in Petroleum Fuels & Products)

Atul Tele Services (Mobile and Tele Communication Services)

Atul Rachna Pvt. Ltd. (Real Estate Developers & Builders)

Atul Auto Batteries Pvt. Ltd. (Batery Manufacturer)

Khushbu Auto Finance Ltd. (Auto Finance Company)

Khushbu Auto Pvt. Ltd. (Centralised Marketing Organisation)

New Chandra Motor Cycle House (Distributors of LML Vespa Scooter, Royal Enfield Motor Cycles, etc.)

1.3 HISTORY OF FIRM:

The Company was originally incorporated as a Private Limited Company on 18th June, 1986 under the Companies Act, 1956, in the State of Maharashtra. The Registered Office of the Company was transferred to Jamnagar in the State of Gujarat on 24-01-92. Subsequently on 20-4-94 the Registered Office was transferred to Dist. Rajkot, Gujarat. The Name of the Company was changed from Atul Auto (Jamnagar) Pvt. Ltd. to Atul Auto Pvt. Ltd. on 12-08-94. The Company was subsequently converted into Public Limited Company and fresh certificate of incorporation was obtained on 12-08-94 from the Registrar of the Companies, Gujarat. The Company has set up its present plant at village Shapar, Dist. Rajkot with a financial assistance from GSFC in the year 1992. The project was successfully implemented and commercial production was started in July, 1992.

The Company is presently engaged in the manufacture of Diesel Three Wheelers like 6-seater Auto Rickshaws, Pick-Up Vans and Chassis of Passenger Vehicles. These vehicles are marketed under the brand name of KHUSHBU, which is well established and very popular.

6-seater Diesel Auto Rickshaw with steering wheel is used for local passenger traffic while Pick-Up Vans for local transportation of goods/ groceries etc. in the urban/semi urban centers. Passenger vehicles popularly known as CHHAKDAS are useful for the movement of passengers from one urban/rural center to another for distances upto 100 kms. or so. The

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Company manufactures chassis of CHHAKDA, while the Body Building and fitting of other Accessories are mainly done at the Associate Units.

The Company has recently introduced Diesel Mobike in the market under the brand name of FUZI vide the envisaged expansion cum diversification programme. The prototypes of the proposed Diesel Two Wheelers developed by the Company has 4 stroke, Diesel Air Cooled 350 c.c., C.I. Engine, having maximum Horse Power of 6.4 H.P. The Gross Vehicle Weight (GVW) is 330 kgs. The Company has already obtained Certificate for compliance to the Central Motor Vehicles (Amendment) Rules (CMVR) and Roadworthiness Certificate from the Automotive Research Association of India (ARAI), Pune - a Research Institution of the Automotive Industry with the Ministry of Industries, Government of India.

The Company had also obtained CMVR and Roadworthiness Certificates as above for the existing range of products viz. Chassis for goods carriage/ 6-passenger Auto Rickshaw with steering wheel and Pick Up Vans. As per the notifications No. P & D Registration/ 813 dated 15.2.93 of Road Transport Commission's Office, Ahmedabad, Government of India, Regional R.T.Os. are authorised to grant clearance certificates on the basis of ARAI's certificates of Roadworthiness and CMVR. Thus, the Company may be in a position to sell its vehicles on All India Bases after obtaining the clearances from R.T.Os. The Company has already obtained Road Transport Offices (RTO) Clearance from the States of Gujarat, Mahrashtra, Kerala and Andhra Pradesh.

SUBSIDIARIES OF THE COMPANY

There are no subsidiaries of the Company in terms of the Companies Act, 1956.

1.4 OBJECTIVES

The objectives of our study are as under1. Study of the Indian automobile industry structure.2. Analysis of performance of Company, sub-segments and their future outlook.3. Understanding the demand of Indian auto market and its growth aspects.4. Evaluation of factors fuelling growth in the Indian automobile market.5. Discussion of the forces countering the market growth.6. Identification of future prospects of the Company for the Indian automobile

industry.

METHODOLOGY

Our methodology consist the following major information

In this comprehensive project we used secondary data only. There are many other types of methodology. We are not using primary data or limited use of that data. There are various tools of secondary data. We are using the common tools like;

1. Magazines2. News papers3. Journals4. Internet5. Internal report6. 2009-10 Annual Report7. 2008-09 Annual Report

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LIMITATION OF STUDY:

Our study limitations are as following1. Limited knowledge2. No comparisons of companies with national & international level.3. Insufficient data with respect to 2010-11.4. Only use secondary data5. Time limitation during semester 6. Some of the company is producing the 2 & 3 wheeler vehicles both so, we cannot get

the exact financial data of 3 wheeler vehicles.

1.5 GLOBAL PRESENCE OF THE FIRM

During the year under report, the global economy as well as Indian economy is in the phase of recovery after 2008-09 global melt down. The India’s GDP growth for 2009-10 is estimated at 7.2% in 2008-09. Indian industry recovered substantially in fiscal 2009-10. According to index of industrial growth industrial production registered 10.4% growth in 2009-10 as against 2.8% in 2008-09 fourteen out of seventeen industries achieved higher growth than in the previous year 2008-09.

In fiscal 2009-10 the Indian economy has shown large capital flight in portfolio investment throughout the year. During the year 2009-10 total foreign investment amounted to be USD 66.5 billion as against USD 21.3 billion recorded during the same period last year and as result BSE Sensex rose from 9 K points in April 2009 to 16 K points in March 2010.

Coupled with the outlook of automobile industry and increased investment in infrastructure industry, the company foresee outlook of three wheeler industry very bright. It is believed that 3 wheeler is cheapest mode of transportation for passengers as well as goods and demand for this three wheeler increasing in under developed countries. Export market is also expected to record impressive growth.

1.6 DETAILS OF PROMOTERS AND OWNERS

OWNER'S PROFILE          

NAME  DIREECTOR SINCE AGE QUALIFICATION EXPERTISE

MR. J .J. CHANDRACHAIRMAN & MD 18/10/1986

54 YEARS UNDER GRADUATE EMINENT INDUSTRIALIST

MR.MAHENDRA J. PATEL JOINT MD 30/11/199446 YEARS UNDER GRADUATE PRODUCTION/PERSONNEL

MR. SUNIL KUMAR

WHOLE TIME DIRECTOR 31/10/2007

50 YEARS B.E. MECHANICAL ENGINEER

MR. RAJESH H. DHRUVE DIRECTOR 19/12/199454 YEARS

COMMERCE GRADUATE AND CA FINANCE & FOREX

MR. SURESH T. KANERIA DIRECTOR 8/3/200449 YEARS COMMERCE GRADUATE

GENERAL ADMINISTRATION

MR. HAKUBHAI J. LALAKIYA DIRECTOR 31/05/2006

55 YEARS M.COM. L.L.M. ADVOCTE

MR. RAMNIKLAL KOTECHA DIRECTOR 31/01/2009

54 YEARS B.E. MECHANICAL

ADMIN. AND MANAGEMENT

MR. VIJAYKUMAR KEDIA DIRECTOR 31/01/200949 YEARS B.COM. FIN, INVEST. & FUND

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DIRECTORS

Shri M. J. Patel and Shri Rajesh Dhruv, directors of the company retire by rotation at the ensuring Annual General Meeting and being eligible offer himself for reappointment. The board of director of the company has passed resolution for reappointment of Shri J.J. Chandra as chairman & Managing Director and Shri Sunilkumar Mittal as Whholetime Director, w.e.f. 1st April, 2010, subject to approval of the members in the ensuring Annual General Meeting. Shri J. J. Chandra is one of the founder promoter of the company and is associated with the company since its inception. Mr. Chandra has, through his foresight and visionary approach, coupled with sound understanding of the automobile industry, has led the Company to the path of growth. Mr. M. J. Patel, is has been associated with the Company since long. Mr. Patel is supervising the production facility of the Company and has proven management skill. The Company has benefited a lot from the expertise and vision of Mr. Patel. Mr. Mittal is a B.E. Mechanical. He is engineer by profession and has developed expertise in designing complete vehicle and components wide experience of more than twenty years in automobile industry. He had joined the company from 1st December 2006 as Vice President Technical. Mr. Mittal has been entrusted with research & development of new vehicle of the Company viz. Atul Gem (three-wheeler with rear engine).

A brief resume of Mr. Rajesh Dhruva containing details of nature of their expertise in specific functional areas and names of the companies in which they hold directorship, membership and chairmanship of the board committees, as stipulated in clause 49 of the Listing Agreement with the Stock Exchange in India, are provided in the report of Corporate Governance forming part of the Annual Report.

AUDITORS M/s Maharishi & Co., Chartered Accountants, and Statutory Auditors of the Company, hold office until the conclusion of the ensuing annual general meeting and are eligible for reappointment. The company has received letter from auditors to effect that their appointment, if made, will be within the prescribed limits under section 224(1B) of the companies act 1956 and that they are not disqualified for such appointment / reappointment within the meaning of section 226 of the Companies Act 1956. 1.7 ORGANIZATION STRUCTURE

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CHAIRMAN AND MD

DIRECTOR

PRODUCTION AND OPERATION

MARKETING HUMAN RESOURCE FINANCE AND ACCOUNT

1.8 LOCATION OF OFFICES AND BRANCHES

Company Facts – ATUL AUTO LIMITEDRegistered AddressSurvey No.86, Plot No. 1 to 4 N H 8-B,,Near Microwave Tower, Rajkot Dist. Gujarat 360002Tel: 02827-253299 Fax: 02827-252254 02827-666029Email: info@atulauto.co.inWebsite: http://www.atulauto.co.inGroup: Not Applicable

Explore Atul Auto connections

RegistrarsSharex Dynamic (India) Pvt. Ltd. 17/B, Dena Bank Building, 2nd Floor, Horniman Circle, FortTel: 22702485, 22641376,Fax: 22641349Email: info@sharexindia.comWebsite: http://www.sharexindia.com

Location Details - Atul Auto

Location Type Address

Registered Office & Factory Survey No.86 Plot No. 1 to 4 N H 8-B, Kotdasangani Shapar (Verval)Rajkot Dist. - 360002Gujarat - IndiaPhone : 253299, 254499, 252996, 252998, 252999Fax : 252254Email : info@atulauto.co.inInternet : N.A.

Corporate Office Jimmy Tower, Gondal Road, Opp. Swaminarayan Gurukul Rajkot - 360002Gujarat - IndiaPhone : 2374991, 2374992, 2374993, 6546999Fax : 2374994Email : N.A.Internet : N.A.

Factory/plant Three Wheel Manufacturing Unit Sector 2 Plot No 5,

IIE SIDCUL Ranipur, Haridwar - Uttaranchal - IndiaPhone : Fax :

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Email : N.A.Internet : N.A.

Factory/plant Wind Turbine Generator Village Soda-Mada Jaisalmer - Rajasthan - IndiaPhone : Fax : Email : N.A.Internet : N.A.

Factory/plant Wind Turbine Generator Village Gandhvi Lamba, Kaiyanpur,Jamnagar - Gujarat - IndiaPhone : Fax : Email : N.A.Internet : N.A.

Factory/plant Wind Turbine Generator Village Soda, Jaisalmer - Rajasthan – India.Phone : Fax : Email : N.A.Internet : N.A.

Registered Office & Factory Survey No.86, Plot No. 1 to 4 N H 8-B, Near Microwave Tower, Shapar (Verval), Rajkot Dist. - 360002Gujarat - IndiaPhone : 253299, 254499, 252996, 252998, 252999, 666000Fax : 252254, 666029Email : info@atulauto.co.inInternet : N.A.

Factory/plant Wind Turbine Generator, Village Soda Jaisalmer - Rajasthan - IndiaPhone : Fax : Email : N.A.Internet : N.A.

Factory/plantWind Turbine Generator: Village Gandhvi Lamba, Kaiyanpur Jamnagar - Gujarat – India.

CHAPTER 2

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MARKETING AND SALES

2.1 INTRODUCTION

Marketing cannot be considered a separate function. It is whole business seen from the point of view of final result that is from the customer's point of view. Business success is not determined by the producer but by the customer. Marketing consists of all activities by which a company adopts itself to its environment cravenly and profitability. One can safely say that marketing is a social & managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging product value with other. "Marketing consists of all the potential customers sharing a particular need or wants, who might be willing and able to engage in exchange to satisfy that need or want".

"Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individuals & organizational goals." Marketing management plays a dynamic and vital role for the business enterprise under marketing management; a marketing programmed is prepared on the basis of need, wants, tests and fusion of customers today new and new technology comes into market every day. Customer's demand also changes with technology. Today new and new technology comes into market every day. Customer's demand also changes with technology. Now a day, market is customer oriented, rather than producer.

Marketing Organisation

Marketing structure is deliberate conscious creation to implicate marketing philosophy into practice. It can be referred as a network (arrangement) made up of people task, responsibility and authority and communication flow to achieve interaction and co-ordination among efforts of company's people. The marketing department can be organized around the product to be sold if we have a line of products. It will be organized on the basis of marketing functions. Like, selling, marketing information and research, advertising, sales promotion, physical distribution, branding, packaging, pricing and channel choice, product planning and development, marketing control, marketing organization is very useful for analysis, planning, implementing & control of marketing programme. It is also useful for fixing of responsibility & authority and maintains good relations among different department & people.

Marketing occupies an important position in the organization of a business unit. As traditionally defined “Marketing consists of those efforts which effect transfers in ownership of goods and care for their physical distribution”.

F.E. ClarkThe above definition of marketing is a description of the physical activities involved in the process of distribution of goods. However marketing is more than a mere physical process or a set of activities. The purpose of a business is to create a customer. “Marketing is the function of business concerned with the creation of a customer”.

Peter Drockes.

2.2 ORGANISATION STRUCTURE OF MARKETING DEPARTMENT

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The organizational chart of Atul Auto Ltd. of marketing department is as under.

2.3 DETAILS OF COMPETITORS

Competition

Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Bajaj Auto 35,010.52 11,920.98 1,700.11 4,266.92

Hero Honda 29,388.01 15,860.51 2,231.83 3,531.05

TVS Motor 2,213.91 4,430.13 88.02 1,868.67

Mah Scooters 387.31 4.42 8.41 200.56

LML 75.02 315.44 -50.64 -75.57

Kinetic Motor 56.06 6.36 -6.56 29.99

Atul Auto 60.33 120.68 3.17 56.82

OTHERS:

SCOOTERS INDIA LIMITED

VCCL

PIAGGIO

2.4 CUSTOMER SEGMENTATION AND TARGET MARKETS

Segment Knowhow

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Managing DirectorManaging Director

Executive DirectorExecutive Director

General ManagerGeneral Manager

Marketing ManagerMarketing Manager

Marketing ExecutiveMarketing Executive

Marketing AssistantMarketing Assistant

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multipurpose vehicles. In utility vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.

2.5 DISTRIBUTION NETWORK

The media through the product is made available to the customers are called the channels of distribution. The selection of a good channel of distribution in the marketing of the goods services must be proper and affordable by the company. A marketer must see the factors, which are helpful to market his product and to decide the channel of distribution.

There are mainly two methods of distribution. Direct method refers to the selling of the product directly by the manufacturer to customer. While indirect method refers to selling of the product through various Medias such as wholesaler, retailers, agents’ etc. channel which is most suitable to him.

Atul Auto Ltd. has adopted direct method of selling as well as the level of distribution in which they hire dealer (agents) to sell their products. In Gujarat there are 25 dealers and in other states out of Gujarat there are 3 dealers working for Atul Auto Ltd.

DIRECT METHOD

Manufacture Customer

INDIRECT METHOD (One level method)

Manufacture Authorized Dealer Customer

Channel Management

"Channel of distribution, indicates routes or pathways through which flow or move from producer to costumers. "

We define the distribution channel as the set of interdependent marketing institutions participating in the marketing activities involved in the movement or the flow of goods or services from the primary producer to the ultimate consumer.

Marketing institutions considered as channel components are :-

1) All kinds of merchant middleman such as wholesalers and retailers.

2) All types of agents such as commission agents, factors brokers, warehouse keepers and so on.

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3) All other facilitating agencies, such as commission agents, common carriers, bankers, advertising agencies and so on.

Consumer satisfaction is the basic objective for most of the business houses and it can be achieved through availability of product to customer at the right time, at right place, at right place, at right price and at right quality & quantity.

From the very beginning Atul Auto Ltd. Have good number of distributors & dealers at different places. At present Atul Auto Ltd. Is having 25 dealers in Gujarat and 6 are out of Gujarat.

The number &channel levels involved can describe distribution channel. A Manufacturer has various available channel choice as given below :

1) Manufacture----------Consumer

2) Manufacture---------retailer ----------consumer

3) Manufacturer----------wholesales --------retailer --------consumer

4) Manufacturer----------jobber ---------wholesales --------retailer---------consumer

Atul Auto Ltd. has the following channels of distribution of three wheelers.

The company is also sales directly from factory too.

Atul Auto Ltd. has selected such distribution levels, as because the product is 3-wheeler, so definitely it has to face the situation of less bulky but scooter demand of product. And so for Gujarat is considered, it has to put dealers as sub-dealers to meet the demand at taluka level and at village too. As far as co-operation and conflict is considered. Atul Auto Ltd. does not

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Atul Auto Ltd

Distributors (State Level)

Authorizes Dealer (District Level)

Sub Dealer (Taluka Level)

Consumer

have to bother about it. Atul Auto Ltd's distribution channel is so simple that does not create any conflict situations. And Atul Auto Ltd. is such a big name in 3 wheelers automobile industry that can make dealer satisfied financially and psychologically.

2.6 STUDY OF GENERIC LEVEL COMPETTION

The competition is the term where the cut throat competition views remain. There are many players in India which are manufacturer of three wheeler in the industry. The three wheeler is the important segment of the automobile industry. India is one of the largest manufacturers of the three wheeler. The export and import of three wheelers by companies in India is improving. The Bajaj Auto, Scooters India, Piaggio, Mahindra and Mahindra, Atul Auto Limited, VCCL, etc are the key players of three wheeler manufacturers. The Bajaj Auto is the leading player in the India. The Bajaj Auto has the almost 60% market share in the India.

If we see, the Piaggio is the market leader in the southern India. There is only one brand which sells the maximum volume per annum. The west side or Gujarat, we can see the market leader is ATUL AUTO LIMITED. Atul Auto has maximum market share in Gujarat especially in SAURASHTRA region. The three wheeler model CHHAKADA is very popular in the Gujarat as well as India. It is the gift from the Atul Auto.

2.7 PRICING POLICY

Price has operated as the major determinant of buyer choice. This is still the case in poor nations, among poor group and with commodity type products. Price still remains one of the most important elements determining company market share & profitability. Price is only element in the marketing mix that producer revenue, the other elements like production cost, price is also one of the most flexible-elements of marketing mix, in that it can be changed quickly unlike product features and channel commitment. At the sometime pricing & price competition are the number one problem faced by marketing executives.

A firm must set a price for the first time when firm develops or acquire a new product, when it introduces its regular product into new distribution channel or geographical area and when it enters bid on new contract work. In setting its pricing policy a company follows following six procedures.

1. Selecting Price Objectives:

The company fist has to decide what it wants to accomplish with its particular product offer. If company has selected its target market and market positioning carefully then, marketing mix strategy including price will be fairly forward.

(a) Maximum Current Revenue: - Company sets a price that maximizes sales revenue. They believe that revenue maximization will lead to long run profit maximization & market share growth.

(b) Survival: Company want to survive as their major objective if they are plagued with intense competition, over capacity, or changing consumer wants. However, survival is only a short run objective.

2. Determining Demand:

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In normal case, demand & price are inversely related i.e. the higher the prices lower the demand and lower the price, higher the demand. Atul Auto Ltd. Use following two methods for estimating demand curve.

(A) They analyses existing data on past price, quantities sold & other factors to estimate their relations.

(B) They ask buyer to state how many units they would buy at different proposed prices.

3. Estimating Price:

To charge a price that covers its cost of producing, distributing & selling the product including a fair return. So company fix price of products by considering fixed cost, raw material cost, and management cost, distribution cost, advertising cost & government taxation.

4. Analyzing Competitor's Cost Price & Offers:

Within range of possible prices determined by market demand and cost competitors cost, prices and possible price relations help the company establish where to set its price. So company always tries to set up prices lower than competitors.

5. Selecting Pricing Method:

Companies resolve the pricing issue by selecting a pricing method that includes one or more of these considerations. The pricing methods will then bad to specific price. Company has to accept the method of cost plus mark up. Cost plus pricing method is considered best approach to pricing. It is based on the seller's per unit cost of the product and additional margin of profit.

There are four items in determining the sales prices.

(a) Cost of Production

(b) Operation Cost (Variable Cost)

(c) Expected Unit Sales

(d) Expected Mark Up

So, the pricing policy in term of product is as follows,

Unit Cost = Fixed Cost

Unit Sales

Dealer Billing Price = unit cost of product + overhead + 4% C.S.T. + 16% excise +

Transportation + Profit

6. Final Price of Vehicle:

Price methods narrow the price range from which the company must select its final price. In selecting final price, Atul Auto Ltd. Consider additional factors including psychological pricing, influencing other marketing mix element on price, company pricing policy & impact of price on other parties.

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2.8 SALES PROMOTION

Sales promotion is an important instrument in marketing investments in sales promotion can pay very rich dividends. Sales promotion is connecting link between advertising and personnel relationship. It covers displays, exhibitions, demonstrations, coupons and various other selling efforts. Sales promotion uses all those techniques, which help in giving an extra effort to the sales to make it more productive.

“Any steps those are taken for the purpose for increasing sales, the efforts are made to supplement personnel selling and advertising are temped as sales promotion.”

Atul Auto Ltd. In their sales promotion program arranges a free demonstration and free services camps time to time for sales promotion dealers are also given some rate of discount. Through sales promotion company has decided to increase the production and its capacity of workers so that more demand because of sales promotion can be fulfilled.

ADVERTISING

In order to attract the buyers to purchase the product advertising is the most efficient tool of marketing. Sometimes it may happen that those who are in need of the product are totally unaware of the product so advertising plays a vital role in such cases. Advertising may be sent through newspaper, magazines, television, exhibition, fairs, wall painting, hoardings etc. The manufacturers if not able to spare time for advertising then he can give the contact to advertising agency also.

The basic function of advertising is to attract and influence the people to buy products. The messages given through advertising must be conveyed clearly. To make advertising effective, procedures must have a constant touch of new ideas and methods which are beneficial to all. It must be of lower rate so that it may not affect the capital of the company.

Atul Auto Ltd. Products highly demanded by the customers as they are fulfilling the demand of each section of society. At present they are not in position to increase supply up to the demand of their product. Through they advertise their product but very less investment is made on advertisement in local newspapers and to make brand image of their product in well known magazines like ‘ABHIYAN’, ‘AUTOCAR’ etc.

PRODUCTS MIX

Product mix is the set of all products and items that a particular seller offers for sale to buyers, the product mix of a company has four main parts as under :

1) Product Width - It means total number of product line.

a) Loading Rickshaw

b) Passenger Rickshaw

2) Product Length - It means total product

a) Pick-up Van (Loading)

b) Shakti Rural (Loading & Passenger)

c) Atul Shakti (Passenger)

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3) Product Depth - It means average number of product lines

The product line is group of products that are closely related because they perform a similar function, are sold to customer groups, are marketed through the same channels or fall within given price ranges. Atul Auto Limited has three product lines.

1) Loading

2) Loading Passenger

3) Passenger

4) Product consistency - It means close relation between the line

Products Life Cycle

PLC concept derives from the fact that a product sales. Atul Auto Ltd. products are in mature stage. During this stage keen competition brings pressure on prices. There are on step in this stage i.e. sales increase but it decreasing rate in Atul Auto Ltd. At this stage, sales increases but at decreasing rate because the product has achieved acceptance by most potential buyers. Here, profit declines because of increasing marketing expenditure to defend the product against competition, so company adopt measure to stimulate demand & face competition through additional advertising & sales promotion.

2.9 MARKETING STRATEGIES

Company should consider strategies of production and marketing mix modification.

1. Market Modification: - Company might try to expand the market for its mature brand by working with the factors that make up sales.

2. Product Modification: - also try to stimulate sales by modify the product’s characteristic through stages: (A) Quality improvement (B) Style improvement (C) Feature improvement.

3. Marketing Mix Modification: - Company also t to stimulate sales by Modifying marketing mix element like price, place & promotion

BRANDING & PACKAGING

"Branding" is one of the most eye-catching phenomena in this world of competition in any business whether manufacturing or service industry.

In any company, it has its product but the company produces the same product with different features, so separate this product by feature wise, company gives it a different name. The name is called "Brand Name".

Atul Auto Limited has two main brands called "Khushbu" & "Shakti" And both the brands have their other sub brand, which includes special feature of that 3 wheeler.

"Khushbu" Branded:

1. Khushbu Road King

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2. Khushbu Road Master

3. Khushbu Mark II Passengers

4. Khushbu pick up Van

“Shakti” Branded:

1. Atul Shakti

2. Atul Shakti Passenger Deluxe

3. Atul Shakti (4 passengers + 1 driver)

4. Atul Shakti delivery van

5. Atul Shakti drive away chassis

6. Atul Shakti pick-up standard

7. Atul Shakti pick-up van angle body

8. Atul Shakti pick-up soft drinks carrier

Enterprises owned or significantly influenced by key personal management of their relatives..

I. ATUL AUTO AGENCY

II. ATUL UTO INDUSTRIES

III. ATUL AUTOMOTIVES

IV. ATUL MOTORS PRIVATE LIMITED

V. ATUL PETROLIUM

VI. KHUSHBU AUTO PRIVATE LIMITED

VII. NEW CHANDRA MOTOR CYCLE AGENCY

VIII. NEW CHANDRA MOTOR CYCLE HOUSE

IX. ATUL AUTOMOBILES

2.10 EXPORT POTENTIAL

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The products of a company when sold in the markets or foreign countries are known as exports. It helps in increasing the foreign exchange of a country. Thus, the export activities plays a significant role in the economic upliftment of a nation.

The company ATUL ATUO LTD. supplies its vehicles with brand name “ATUL SHAKTI” in an African Country Nigeria. It supplies 50 vehicles to a transport agency in Nigeria. This agency uses these vehicles mainly for transportation or as load carrier.

The company with its brand name “KHUSHBU” has exported in Asian and African Countries.

2.11 COMPARISION WITH INDUSTRY

Global Players in India:

Segments Companies

Cars/ SUVs Daimler-Chrysler Daewoo Motors Fiat Ford GM Honda Hindustan Motors Hyundai

Mahindra & Mahindra Maruti Udyog Ltd Mitsubishi Skoda Suzuki Tata Toyota

Two-wheelers/Three-wheelers

Bajaj Auto Hero Honda Hero Motors Honda Kinetic VCCL Scooters India limited Piagio

LML Royal Enfield Motors

Ltd. Suzuki TVS Yamaha M&M Other local

CVs Ashok Leyland Eicher Mahindra & Mahindra Mitsubishi

Swaraj Mazda Tata Volvo

Tractors Eicher Escorts Limited ITL-Renault John-Deere L&T M & M

Mahindra & Mahindra New Holland Punjab Tractors Steyr Tata

CHAPTER 3

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PRODUCTION AND OPERATION

3.1 INTRODUCTION

Atul Auto Ltd. is largest in Gujarat and key player three wheeler manufacturing Company in the country having its manufacturing facility at Rajkot in the state of Gujarat with a total installed capacity of 24,000 vehicles annually. Atul produce Diesel as well as CNG operated Three Wheeled Micro Commercial vehicles. Also have full-fledged R&D center at Pune in the State of Maharashtra. Apart from Atul Gem, Atul manufactures, market and export both cargo and Passenger three wheelers under the brand name "ATUL SHAKTI" More than 200,000 Atul vehicles are on the Indian as well as foreign roads with commendable success, both in terms of workmanship and after sales service through their well spread Authorized Dealer's Network operating in 10 Indian States and export destination. Production department is one of the main parts of whole company management. Production department is also called manufacturing department where production process is carried out. It is department where raw materials are converted to finished goods by the utility of different workers and machines. Production department keeps company’s external relations by internal activity i.e. production, which company’s production department work efficiently than that company has good feature. In short production department combines of man power and machine power without manpower or without machine power this department cannot be possible and if this department is not possible, production is not possible.

3.2 ANALYSIS OF FACILITY LOCATION

INFRASTRUCTURE

The backbone of their business is their infrastructure which empowers them to create and deliver superior quality and world-class products. Today, they have manufacturing units with all the advanced equipments and machineries like CNC machine shop, fabrication shop, paint shop, test house and much more.

Manufacturing Units:

Manufacturing plant situated at Shapar 18 Kms. away from Rajkot. This plant is having production capacity of 24000 vehicles per annum in single shift basis.

NAME OF MACHINERY:

For the production of finished foods, raw-materials are the most important. Then second important point for the production of finished product is machinery. “ATUL AUTO LTD.” Uses various types of machines like;

Welding and casting machine Nut balls Sub-assembling machines Studs and nuts Testing machine.

RAW MATERIALS:

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ATUL AUTO LTD. Uses raw-materials like steel sheets, pipes, bright bars, engine oils, ball-bearings, etc. the unit mostly purchases this material from TATA Ahmadabad depot. It also uses semi-finished products from various places like Aurangabad, Delhi, Ahmadabad and Rajkot.

POLLUTION CONTROL:

The problem of pollution is nearly Nil. This because no smoke as produced during the production process. Also no water or land pollution bring caused by the industry. So the company has received a no objection certificate from government.

INDUSTRY AND BUSINESS OUTLOOK:

During the year 2009-10 under report, the production of 3 wheeler vehicles has increased by 25.92%.

Product Performance:

1. ProductionProduction of vehicle for the year 2009-10 is 12,379 as compared to 11,437 in 2008-09 showing increase of 8%.

2. Sales Total sales turn over presented in number of vehicles, is 12,329, which in terms of amount is 114.44 crores, against previous year turnover of Rs. 112.15 crores [vehicles sold 11,488 in previous year].

3. ProfitabilityThe company’s profit before tax stood at Rs.7,15,01,637/-, whereas as Net Profit after tax stood at Rs.4,53,86,535/-

4. WTG projectMember are aware that the company had already installed wind turbinegeneratorof 1.25 MV capacity atVillage Soda, Nr. Jaiselmer, State Rajsthan and has also installed 0.600MW wind turbine generator atgandhavi, dist. Jamnagar. The company ha erarned total income of Rs.1,40,62,368/-(out of which , electricity having value of Rs,76,10,785/- jas been used for selfconsumption) from power generation projectin the 2009-10ass compared totatal income of Rs. 1,35,78,109/- during last fiscal (out of which electricity having value of Rs. 69,27,181/- has been used for self consumption). The company has earned benefits of saving in power cost since then.

3.3 FACILITY LAYOUT

PLANT LOCATION:

The factors which usually determine the location of industries may be described as under:

Availability of raw-material Markets Fuel and power Transport facilities Labor Future outook

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The ATUL AUTO LTD. Is located at survey no. 86 on national highway 8-B, shaper (veraval). The firm selected this location because it is on industrial are and all the facilities like transportation, labor, raw material etc. are easily available.

3.4 MATERIAL HANDLING:

In ATUL AUTO LTD. Material handling equipment are used in hydraulic trolley and simple trolley. Simple trolleys are more frequently used while hydraulic trolleys are used to carry very heavy materials. These trolleys are used to carry materials from one place to another. They are moved either manually or technically with the help of different types of material handling equipment.

3.5 INVENTORY CONTROL:

Inventory control means control ever material lying in store. Inventory control keeps continuous track of inventories. Inventory control aims of the following objective.

A. Never send out too many small costly order for moreB. Never run out of anything.C. Never build up a very large inventory.

There are five deferent types of stores department in ATUL AUTO LTD.

A. General stores.B. Tools stores finished goods store.C. Raw-material.D. Fabrication store.

3.6 QUALITY CONTROL:

The quality control department of ATUL AUTO LTD. Checks the quality of the goods with the help of equipment like crack detector, harness tester, tec. This department checks the quality of raw-materials and finished products. Now, only this it also checks the quality of at every stage of the production process. the responsibility of controlling the quality is held by the supervisor of production department in ATUL AUTO LTD.

SCRAP AND WASTE MANAGEMENT:

The unnecessary accumulation of absolute and scrap items is said to be waste and enough capital is blocked in it. The firm, ATUL AUTO LTD. Has a special scrap yard in which the scrap from machine shop and fabrication is assembled. This scrap is weekly collected and sold to person named Abdulbhai. This is a way of income for the company.

STORES MANAGEMENT:

The principle function of stores management is to act as a clearing house for goods i.e. receipt goods bought and issue of need materials in the plant against authorized orders. ATUL AUTO LTD. Maintains a computer online system of their own for the purpose of store management. This records of every materials starting from purchase to final production and finally to sale is maintained in this system. The head of stores management is Mr. j Mehta.

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PDI DEPARTMENT OR Q. C. DEPARTMENT

After the successful manufacturing and assembling process the vehicle is sent to PDI department for proper inspection, in this department generally following types of testing procedure takes place.

3.7 SAFETY

Leakages at fuel lines Braking efficiency Brake pedal setting

Level of brake fluid / leakage Electrical joint efficiency Steering freeness

Accelerator freeness Oil leakages Oil level in engines

Abnormal noise from engine Abnormal noise from gearbox

Horn sound Oil level in gear box Gear shifting

Reverse gear engagement Battery connection All electrical working

Vehicle starting Hand brake lever position Head light focus

AESTHETIC

Paint quality (Dust, Rundown, Scratches uncovered)

Welding joint finish

Front show glass / side glass

Rubber bedding fitting of front show glass side glass

OTHERS

So, all mentioned activities and testing takes place at PD1 department. Generally 30-50 vehicles are checked every day and for that 5 people are required. One of most important activity takes place here is: History card it is prepared in PDI department which connects with warranty card in which all the details of vehicle like date of issue, vehicle sold by Ch. No. and engine no. also name and address of customer is mentioned in this card. Battery & warranty card also provided from PD1 department.

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3.8 ORGANIZATION STRUCTURE

There are many levels in the production department. There are two types of manager. The purchase manager focusing on the raw material side and the production manager manage the whole thing about the production. He converts the raw material into semi finish or finish goods. There are few engineers who design the products. The assembly and paint department available under one roof. The workers are either engineer or skilled in automobile sector.

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Board of Director

Managing Director

E. Director

General Manager

Purchase Manager Production Manager

Sr. Eng.

Fabrication

Planning Engineers

Sr. Eng.

Testing

Sr. Eng.Quality Control

Sr. Eng.

Design

Workers

Sr. Eng.

Assembly

3.9 DIAGRAM OF THE PRODUCTION PROCESS

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Materials

R.S.

Q.C.

F.R.C.

Process store

General store

Material storeF. goods store

Q.C.

Q.

General

Assembly

P.D.I.

Dispatch

PRODUCTION PROCESS

1) Purchase of Raw Material

The main raw material is iron used by the company to manufacture vehcles. Company purchases different varieties of iron such as iron angles, iron sheets, iron pipes etc. The company generally purchased this raw material from shapar, Rajkot and Ahmedabad.

2) Cutting of Raw Material

After receiving the raw materials, the process of cutting as per requirement is done by the workers. Iron angle, sheets and pipes are cut as per the need of various products and range.

3) Shaping

The raw materials have been given shape on shaping machine by the workers or engineers. Iron pipes angles and sheets are given shapes as per its place in vehicles. The shaping is the stage where the product designs have been made.

4) Fixing of components

After giving shape to iron pipes, angles and sheets they are fixed with each other by bolts and welding and the vehicles gets their primary shape.

5) Assembling

Different components, which were fixed by joining different parts of irons, are assembled in assembling department and after completion of this process half of the process is finished over here. Generally assembly activity is also separated as an assembly department. So in the assembly department work is divided in four stages.

First Stage: Joining three parts, i.e. Fork,

Second Stage: Power Pack assembly of fixing gear box with engine

Third Stage: Break Assembly.

Four Stage: Cabling work, clutch, gear cable and also Electric wiring is completed at this stage.

6) Sub-Assembling

The part before the assembly is of sub-assembly. Here in this stage all the small parts are assembled with each other and are forwarded to the assembly stage. The kinds of work done in this stage are of fork assembly, differential assembly, real excel Assembly, Handle assembly, Electric assembly etc. After the completion of the sub-assembly work they are forwarded to the assembly department for the further process.

7) Body-fitting

In this part of the process, the body of the vehicle is repaired and vehicle gets its original shape and different parts of the body are joined together in this department.

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8) Gear-fitting

For any automobile industry the important part is gear. No commercial passenger vehicle or goods vehicle can be made without gear or rather it will be not economical for the customer from the view point of the mileage. Atul Auto Ltd. Manufacturing gears for its vehicle by the help of the specialist engineer’s team.

9) Engine

The next important part of the vehicle is the engine. Any vehicle for working purpose needs engine as a human being needs heart for its function. Company is not manufacturing engine by its own but is importing engine from Aurangabad. The company simply fixes up the gear with the engine and then it is installed into the vehicle. We will go through engine specification in later stage.

10) Paint Shop

In paint shop the vehicle is brought in the store when it totally assembled. Here the color is done to the vehicle according to the company’s policy. The paint shop till today is manual but in shorter time Atul Auto Ltd. will have the Automatic plant for the Color. There are also some limited colors like yellow or green design on the auto. The government policy and the RTO rules have to be followed.

11) Final Testing

The last step in the process is of testing the vehicle before the final dispatch. Department where this final inspection is done is called PDI i.e. Pre Dispatch Inspection. Following inspection is made.

Visual Inspection: Visual Inspection of two types. Body Finishing and paint Body Alignment and seating hood.

Electric Testing:Self-Charging, Head Lamp, Indicator Lamp, Cabin Lamp, Parking Lamp, Tale Lamp, Break Lamp, Home Mounting. Fitting Testing: Front Wheel and Rear Wheel Testing. Engine foundation. Differential assembly, front show. Body Mounting and Wiper assembly.

Oil and Air Testing:All type of oil required in engine, gear box, Differential breaks are checked.

Cable and Pipe Testing: All cable such as Accelerator cable, Clutch cable, Gear forward and reverse and etc, are checked up properly. Also all pipe such as Tank filter, Filter to pump, Return Pipe, Brake Pipe clamp, Pump to Banjo and etc. are also tested.Road Trial, Distance cover, Break efficiency, Balance of the Vehicle, Maximum Speed,

Vibrations.

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3.10 PRODUCT RANGE

Atul Shakti 3+1 Passenger Atul Shakti 4+1 Passenger

Atul Shakti 6+1 Passenger Atul Shakti Delivery Van

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Atul Shakti Pickup Van Standard Atul Shakti Pickup Van

High Deck

Atul Shakti Re Passenger Atul Shakti LPG Passenger

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Atul Shakti Hopper Atul Shakti Chicken Carrier

Atul Shakti Tipper Atul Shakti Soft Drink Carrier

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Atul Shakti Water Tanker Atul Shakti Bio Hazard

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Atul Shakti Mobile Shop

Atul Shakti Vegetable Vending

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CHAPTER 4

FINANCE AND ACCOUNTS

4.1 INTRODUCTION

Every other day a new model of auto is being launched in the country, how many times you must have wished to change that old auto of yours and buy a hot set of wheels. However as you come back to earth, bitter reality bites you; realization dawns in that you don't have such a big amount of money to invest in a new auto. Don't worry as several banks and financial institution have donned the role of new age Santa Claus to make sure that your dream comes true. Today auto loans are not only available for brand new autos but they are also available for used autos.

State Bank of India which is one of the largest nationalized banks in the country offers you the following advantages

1. Longer repayment periods up to 7 years2. Low processing

3. No advance EMI along with the down payment effectively increasing the amount of loan

4. Interest is calculated on the reducing balance method meaning every time you repay an amount the interest is calculated on the remaining amount and not on the one which is out standing at the beginning of the year.

The company gives a loan which is up to 2.5 times of one's net annual income, with the minimum income cap of the applicant being 75000 rupees per annum. The company sanctions loans for all new autos and for second hand autos which are not more than 5 years old. The bank also provides loans to people who don't have an account with the bank provided they furnish address proof, identity proof and other relevant documents. UTI bank offers loans covering 85% of the cost of the vehicle plus registration and insurance or 20 times the net monthly salary and you can repay the loan with in a maximum period of 5 years or 60 monthly equated installments.

Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the items of the balance sheet and the profit and loss account. The nature of analysis will differ depending on the purpose of the analyst like a trade creditor, suppliers of long-term debt, investor, and management. Here in three wheeler industry financial analysis is the key issue for that how industry could be growth and how their asset could be more resourceful than other.

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4.2 ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT

4.3 CAPITAL STRUCTURE

Capital Structure (Atul Auto)Period Instrument Authorized

CapitalIssued Capital - P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital2009 2010 Equity Share 8 5.85 5851520 10 5.852008 2009 Equity Share 8 5.85 5851520 10 5.852007 2008 Equity Share 8 5.35 5351520 10 5.352006 2007 Equity Share 8 5.35 5351520 10 5.352005 2006 Equity Share 8 5.35 5351520 10 5.352004 2005 Equity Share 8 5.35 5351520 10 5.352003 2004 Equity Share 8 5.35 5351520 10 5.352002 2003 Equity Share 8 5.35 5351520 10 5.352001 2002 Equity Share 8 5.35 5351520 10 5.351999 2000 Equity Share 8 4.46 4459600 10 4.461998 1999 Equity Share 8 4.46 4459600 10 4.461997 1998 Equity Share 8 5.1 5100300 10 5.11996 1997 Equity Share 8 5.1 5100300 10 5.11995 1996 Equity Share 8 5.1 5100300 10 5.1

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Chief financial officer

Controller Treasure

Planning & Budgeting Officer

Accounting

OfficerAssistant Assistant

AssistantAssistant

Assistant Assistant

1994 1995 Equity Share 8 1.8 1800000 10 1.8

Source : Dion Global Solutions Limited4.4 COSTING METHODS

4.5 COST STRUCTURE

Expenditure

a. Raw material consumption and processing chargesRaw material consumption and processing charges decreased by 0.65% to Rs.9,301.21 lacs for the march 31, 2010 from Rs.9,362.04 lacs for the March 31, 2009.

b. Staff costStaff cost increased by 19.23% to Rs.703.41 Lacs for the year March 31, 2010 from Rs.589.97 Lacs for the Year March 31, 2009.

c. Financial ExpensesFinancial expenses increased by 12.95% to Rs.316.10 Lacs for the year March 31, 2010 from Rs.279.86 Lacs for the year March 31, 2009. It includes interest on term loan of Rs.183.99 Lacs, interest on cash credit of Rs.89.92 Lacs, other interest of Rs.4.19 Lacs and Rs.37.99 Lacs for bank charges.

d. Depreciation amortizationCompany has provided Rs.354.70 Lacs for depreciation and Rs.32.52 Lacs for amortization of intangible asset for the year ended march 31, 2010.

e. Tax expensesCompany has provided for current tax of Rs.158.16 Lacs and deferred tax of Rs.102.32 Lacs for the year ended March 31, 2010.

Liquidity:Company’s growth has been financed largely through cash generated from operations. Net cash generated from operations was Rs. 958.02 Lacs and Rs. 664.48 Lacs for the year ended March 31, 2010 and March 31, 2009 respectively.net cash used in investing activities was Rs. 193.74 Lacs and Rs.726.91 Lacs for the year ended March 31, 2010 and March 31, 2009 respectively. Net cash used in financing activities was Rs. 785.87 Lacs for the year ended March 31, 2010 and net cash raised by financing activities was Rs.211.20 Lacs for the year ended March 31, 2009.

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4.6 CLASSIFICATION OF COSTS IN VARIOUS CATEGORIES

The company’s major cost classification are as above. The manufacturing, selling and marketing, general administrative expenses of company in last two year comparision gives some important views. The manufacturing cost of the company is decreasing on last year. The reason might be the use of modern technology. The selling and marketing expenses also declined. The only general and administrative expenses were increased.

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4.7 WORKING CAPITAL MANAGEMENT

The period of time which elapses between the point at which cash begins to be expended on the production of a product and the collection of cash from a customer

The diagram below illustrates the working capital cycle for ATUL AUTO firm

The upper portion of the diagram above shows in a simplified form the chain of events in a manufacturing firm. Each of the boxes in the upper part of the diagram can be seen as a tank through which funds flow. These tanks, which are concerned with day-to-day activities, have funds constantly flowing into and out of them.

1. The chain starts with the firm buying raw materials on credit.

2. In due course this stock will be used in production, work will be carried out on the stock, and it will become part of the firm’s work in progress (WIP)

3. Work will continue on the WIP until it eventually emerges as the finished product

4. As production progresses, labour costs and overheads will need to be met

5. Of course at some stage trade creditors will need to be paid

6. When the finished goods are sold on credit, debtors are increased

7. They will eventually pay, so that cash will be injected into the firm

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8. Each of the areas – stocks (raw materials, work in progress and finished goods), trade debtors, cash (positive or negative) and trade creditors – can be viewed as tanks into and from which funds flow.

9. Working capital is clearly not the only aspect of a business that affects the amount of cash:

10. The business will have to make payments to government for taxation

11. Fixed assets will be purchased and sold

12. Lessors of fixed assets will be paid their rent

13. Shareholders (existing or new) may provide new funds in the form of cash

14. Some shares may be redeemed for cash

15. Dividends may be paid

16. Long-term loan creditors (existing or new) may provide loan finance, loans will need to be repaid from time to time, and

17. Interest obligations will have to be met by the business.

Unlike movements in the working capital items, most of these ‘non-working capital’ cash transactions are not every day events. Some of them are annual events (e.g. tax payments, lease payments, dividends, interest and, possibly, fixed asset purchases and sales). Others (e.g. new equity and loan finance and redemption of old equity and loan finance) would typically be rarer events.

4.8 ACCOUNTING POLICIES: END OF MARCH 2010.

(a) Basis of Preparation

The financial statements have been prepared to comply in all material respects with the standards notified under The Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

(b) Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the period reported. Actual results could differ from those estimates. Any revision to accounting estimates is recognised in accordance with the requirements of the respective accounting standard.

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(c) Inventories

Inventories are valued as follows:

Raw materials, components, stores and spares

Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated is expected to be sold at or above cost. Cost is determined on a FIFO basis. Cost includes relevant cost of bringing those materials at their present location and condition.

Work in progress and finished goods

Lower of cost and net realizable value. Cost includes Direct Materials and Labour and a proportion of Manufacturing Overheads based on normal operating capacity or actual production whichever is less. Cost of finished goods includes excise duty. Net Realizable Value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(d) Events occurring after balance date Material events occurring after the date of balance sheet are recognized and are dealt with appropriately in accordance with generally accepted accounting principles and as provided in AS-5

(e) Depreciation

Depreciation is provided using the Straight Line Method as per the at the rates prescribed under schedule XIV of the Companies Act, 1956 except in case of : Leasehold Land - amortised over the period of the lease Intangible Asset - Amortised over a period of 5 years as estimated by the management.

(f) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sales of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Excise Duty included in the amount of turnover (gross) are deducted from turnover (gross) for disclosure of net turnover in the P&L account.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable

Dividends

Revenue is recognised when the shareholders right to receive payment is established by the balance sheet date. Dividend form subsidiaries is recognised even if same are declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of schedule VI of the Companies Act, 1956.

(g) Fixed Assets

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Fixed assets are stated at cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use, net of CENVAT recoverable. Financing costs relating to construction of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Financing costs not relating to construction of fixed assets are charged to the income statements.

(h) Foreign currency transactions

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(ii) Conversion

Foreign currency monetary items are reported using the closing rate.

(ii) Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

(i) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current Investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost, less provision for diminution in value other than temporary.

(j) Employee Benefits

Gratuity

The Gratuity Liability is defined benefit obligation. The company has created Employees Group Gratuity Fund which has taken a Group Gratuity Insurance Policy from Life Insurance Corporation of India (LIC). Premium on above policy as intimated by LIC is charged to the Profit & Loss Account. The adequacy of balances available is compared with actuarial valuation obtained at the period end. Shortfall, if any, is provided for in the Profit & Loss Account.

Provident Fund

Retirement benefits in the form of Provident fund is a defined contribution scheme in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of employees salary). The contribution are charged to the profit and loss account of the year when the contribution to the respective funds are due.

Leave Salary

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The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilised leave at each balance sheet date.

(k) Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(l) Segment Reporting

The company is engaged mainly in the business of automobile products. These, in the context of Accounting Standard 17 on Segment Reporting, as specified in the Companies (Accounting Standard) Rules, 2006, are considered to constitute one single primary segment. Further, there is no reportable secondary segment i.e. Geographical segment.

(m) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

(n) Income Taxes

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(o) Intangible assets

Product Development Cost

Product Development Cost incurred on new vehicles platforms, variants on existing platforms and new vehicles aggregates are recognized as intangible assets and are included under fixed assets. These amounts are amortized over sixty months from the commencement of commercial production i.e. from June 1, 2009.

(p) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there are impairment indicators. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use.s

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or decreased based on reassessment of recoverable amount, which is carried out if the change is

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significant. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(q) Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(r) Product Warranty Expenses

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures.

4.9 METHODS TO CALCULATE DEPRICIATON

Depreciation is provided using the Straight Line Method as per the at the rates prescribed under schedule XIV of the Companies Act, 1956 except in case of : Leasehold Land - amortised over the period of the lease Intangible Asset - Amortised over a period of 5 years as estimated by the management.

4.10 RATIO ANALYSIS

RETURN ON CAPITAL EMPLOYED:

Interpretaion:

ROCE is the measure of the firms operating performance. It indicates the firms earning power. It is a product of the asset turn over, gross profit margin and operating leverage. Thus

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ROCE can be calculated as dividing EBIT by Net Asset. For Atul Auto limited, ROCE is 18.61% in 2009-10. It was the almost 9 times than the previous year. It may be seen from table that Atul Auto’s ROCE has shown improvement in 2009-10. The reason may be the profit after tax improves ten times.

The ROCE is maximum in the year of 2005-06. In the last year the ROCE was 18.61%. ROCE is 2.73% in the year 2008-09. The investment is higher than the previous year. We can see the continuous declining flow of ROCE in the year of 2005-06 to 2008-09.

RETURN ON NET WORTH

Interpretation:

The return on net worth shows the earning efficiency of the organization. Here, it has declining trend over the period but finally raised like a leapfrogging towards the end of the period. It showed a threat to the earnings of the organization. It was the highest at the beginning as 32.80 per cent and lowest in the year 2008-09 as 9.19 per cent. In the year 2009-10, it improved and rehabilitated at near highest during the period.

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DEBT EQUITY RATIO

Interpretation:

It is clear that from the total debt ratio that Atul Auto lenders have contributed more funds than owners; lenders contribution is 0.69 times of owner’s contribution. This relationship describes the lenders contribution for each rupee of the owner s contribution is called debt equity ratio. Debt equity ratio is directly computed by dividing total debt by net worth. In 2008-09 the lenders contribution is 1.04, in 2007-08 is 1.27 times of owners contribution.

During the period, it was highest in the year 2007-08 as 1.27 times. It has however maintained the level of 0.69 times at the end of the year. It is the good sign for the company that the debt to equity ratio is quite controlled.

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NET PROFIT MARGIN

Interpretation:

Net profit is obtained when operating expenses, interest and taxes are substracted from the gross profit. The net profit margin ratio is measured by dividing profit after sales by sales.net profit margin ratioestablishis a relationship between net profit and sales and indicates management efficiency in manufacturing, administering and selling the products. For Atul Auto net profit margin is 3.51% in 2009-10. It is the highest. The reason is EBDIT increase from 526 Lacs to 1382 Lacs in 2009 and 2010 respectively. The profit after tax increase from 46 Lacs in 2009 to 454 Lacs in 2010. It is 10 times than the previous one. Net profit after tax increased by 887% to Rs453.87 Lacs for the year ended March 31, 2010 from Rs.45.97 Lacs for the year ended March 31, 2009.

The company has good profit margins during the period except for the year 2008-09. In the year 2009-10, 3.51 per cent remained the highest one. As there has been a hit by the recession, there was very low margin in the year 0.37 per cent.

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EARNING PER SHARE

Interpretation:

Our basic EPS increased by 887% during the year from RS. 0.79 Per share to Rs. 7.76 per share. The Earnings per share is calculated by dividing the profit after tax by the total number of shares outstanding. For Atul Auto Limited the earnings per share is 7.76 in 2009-10. It is the almost 10 times than the previous year. The reason was only the net profit increase 10 times. The company was cost innovative in this period. EPS calculation made over the years indicates whether or not the firms earning power on per share basis has changed over that period. EPS simply shows the profitability of the firm on a per share basis; it does not reflect how much is paid as dividend and how much is retained in the business. Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

Earnings per share of the company was the highest in the year 2005-06 as Rs. 7.84 per share. It declined to the lowest during the year 2008-009 as Rs. 0.79 per share. However, it recovered during the year 2009-10; it went up to its earlier level and reached the Rs. 7.76 per share mark. Overall, it can be said that the company had a good earnings per share ratio.

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4.11 TREND ANALYSIS

In financial analysis the direction of changes over a period of years is of crucial importance. Time series or trend analysis of ratios indicates the direction of changes. This kind of analysis is particularly applicable to the items of profit and loss account. It is advisable that trends of sales and net income may be studied in the light of the two factors: the rate of fixed expansion or secular trend in the growth of the business and the general price level.

UNIT 2009-10 2008-09 2007-08 2006-07 2005-06

Sales CR. 119.80 117.53 81.25 123.02 130

EBIT Lacs 995 280 457 678 774

PAT Lacs 454 46 127 315 420

Current Asset

CR. 24.52 22.87 23.45 29.05 20.28

Current Liabilities

CR. 20.63 15.77 12.93 15.18 19.09

Gross Fixed Assets

Lacs 5928 5734 5023 4051 3256

Net Assets Lacs 4282 4478 3980 3232 2628

Total assets Lacs 7736 7786 8837 8197 5838

Net Worth Lacs 3365 3048 2667 2610 2359

dividend Lacs 117 29 29 54 54

From the above table we can see that sales and EBIT is increasing at good rate. While in case of profit after tax, it is good except one year 2009 in which it declined. Current assets of the company are also increased continuously during the period. Company is continuously investing in the fixed assets to meet the rising demand and technological advance which can be clearly seen from the above table. Company is continuously increasing its reserves which lead to increase in the net worth and the trend of net worth shows the continuous increase. Company has paid dividend to its shareholders at an increasing rate during the period of 5 years and this increase is twofold in the year 2010 which increased.

So, if we see the overall trend of the company then we can say that company is growing at good pace and it has shown positive trend in all the aspects.

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4.12 COMMON SIZED BALANCE SHEET

Balance Sheet of Atul Auto ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sources Of Funds 12 months

Total Share Capital 5.58 5.58 5.58 6.08 6.08

Equity Share Capital 5.58 5.58 5.58 6.08 6.08

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 18.00 20.52 21.08 24.39 27.56

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 23.58 26.10 26.66 30.47 33.64

Secured Loans 15.74 27.80 33.83 31.73 23.17

Unsecured Loans 0.00 0.00 0.00 0.00 0.00

Total Debt 15.74 27.80 33.83 31.73 23.17

Total Liabilities 39.32 53.90 60.49 62.20 56.81

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 30.34 39.11 39.94 42.64 58.23

Less: Accum. Depreciation 6.28 8.19 10.42 12.56 16.46

Net Block 24.06 30.92 29.52 30.08 41.77

Capital Work in Progress 2.22 0.39 10.28 14.70 1.05

Investments 2.30 2.30 2.30 2.30 2.30

Inventories 10.04 20.76 19.36 17.68 18.57

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Sundry Debtors 8.74 8.17 3.96 3.52 4.52

Cash and Bank Balance 1.50 0.12 0.13 1.67 1.43

Total Current Assets 20.28 29.05 23.45 22.87 24.52

Loans and Advances 9.44 6.30 7.63 7.84 7.59

Fixed Deposits 0.11 0.12 0.24 0.20 0.22

Total CA, Loans & Advances 29.83 35.47 31.32 30.91 32.33

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 17.52 13.64 11.55 14.63 17.90

Provisions 1.57 1.54 1.38 1.14 2.73

Total CL & Provisions 19.09 15.18 12.93 15.77 20.63

Net Current Assets 10.74 20.29 18.39 15.14 11.70

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 39.32 53.90 60.49 62.22 56.82

Contingent Liabilities 35.22 66.09 82.22 70.06 71.23

Book Value (Rs) 44.08 48.78 49.83 52.08 57.50

Source : Dion Global Solutions Limited

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4.13 BANKS ASSOCIATED

IDBI BANK

SBI BANK

HDFC BANK

ICICI BANK

4.14 FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS          

         Rs in L'acs

YEARS 2005-06 2006-07 2007-08 2008-09 2009-10

Turnover 12902 12177 8039 11681 11985

Total income 13123 12453 8204 12094 12108

EBDIT 914 873 686 526 1382

Depriciation 140 195 229 246 387

Exceptional Items 0 0 0 -23 0

PAT 420 315 127 46 454

Eqity Dividend 10% 10% 5% 5% 20%

Dividend Payout 54 54 29 29 117

Equity share capital 558 558 558 608 608

Reserves and surplus 1800 2052 2108 2439 2756

Net Worth 2359 2610 2667 3048 3365

Gross Fixed Assets 3256 4051 5023 5734 5928

Net Fixed Assets 2628 3232 3980 4478 4282

Total Assets 5838 8197 8837 7786 7736

Market Capitalisation 7492 4131 2810 1284 2619

           

KEY INDIICATORS          

YEARS 2005-06 2006-07 2007-08 2008-09 2009-10

EPS 7.84 5.88 2.37 0.79 7.76

Turnover Per Share 280.38 262.92 170.76 213.47 220.95

Book Value Per Share 44.08 48.78 49.83 52.08 57.5

Debt: Equity Ratio 0.67 1.07 1.27 1.04 0.69

EBDIT/Gross Turnover 6.09% 6.20% 7.51% 4.21% 10.69%

Net Profit Margin 2.80% 2.24% 1.39% 0.37% 3.51%

RONW 32.80% 25.97% 17.13% 9.19% 29.58%

ROCE 19.07% 14.42% 7.28% 2.73% 18.61%

4.15 SHARE OF FIRM IN THE INDUSTRY:

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Source: (iTrans report-June 2009)

The segmentation of the automobile industry defines the passenger and goods carriage vehicles. We can see that the 60 per cent of the passenger vehicles and the 40 per cent of the goods vehicles in the three wheeler automobile industry. The market share of the Bajaj Auto in passenger vehicles is around the 68 per cent. The Bajaj Auto is a market leader in the passenger vehicle segment. India has the largest three wheeler market. The Piaggio is the market leader in the goods carriage segment. It has around the 40 per cent market share across the country. The major players in the industry like Baja Auto, M&M, Atul Auto, Piaggio, Force etc.

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4.16 RECENT FINANCIAL PERFORMANCE

The company is delighted to present the report on their business and operations for the year ended March 31, 2010. 1. Results of Operations (Rs. in lacs) 2009-10 2008-09 Sales of Products and Income From Operations 11,984.74 11,748.25 Manufacturing Expenses 10,010.66 10,509.44 Sellings Marketing Expenses 334.54 766.18 General & Administration Expenses 342.04 249.47 Operating Profit before Interest and Depreciation 1,297.50 223.17 (PBIDTA) Interest and Bank Charges 316.10 279.86 Depreciation and Amortization 389.30 252.84 Operating Profit Before Tax 592.10 -309.53 Other Income 122.92 345.70 Net Profit Before Tax 715.02 36.17 Provision for Taxation 261.15 13.42 Net Profit after Tax and before exceptional Items 453.87 22.75 Exceptional Items 0.00 23.22 Net Profit after exceptional Items 453.87 45.97

Business Company’s total income increased to Rs.11,984.74 Lacs from Rs.11,748.25 Lacs in the previous year, The profit before depreciation, taxes and amortization (PBIDTA) amounted to Rs.1,297.50 (10.83% of revenue) as against Rs. 223.17 Lacs (1.90% of revenue) in the previous year. Sales and marketing costs were 2.79% of our revenue for the year ended March31, 2010 and 6.52% of revenue for the year ended March 31, 2009. General and administration expenses increased from 2.12% in the previous year to 2.85% in the current year. We continue to reap the benefits of economies of scale. The net profit after tax was Rs. 453.87 Lacs (3.79% of revenue) as against Rs.45.97 Lacs (0.39% of revenue) in the previous year.

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Capital Expenditure Company have incurred a capital expenditure of Rs. 193.74 Lacs for the year ended March 31, 2010 as compared to Rs. 1386.02 Lacs for the previous year ended March 31, 2009.

Appropriations

Dividend

Company is pleased to recommend dividend of 20% (Rs. 2.00 per share) on the paid up share capital of the company, which is subject to approval of members in the ensuring Annual General Meeting. This is the highest payout on account of dividend in history of company. The total dividend payment amounts to Rs. 1,36,92,557/- (including Dividend Distribution Tax of Rs.19,89,517/-). If approved as stated, the Final Dividend will be paid to the shareholders whose names shall appear on the Companys Register of Members on July 19, 2010. In respect of shares held in dematerialized form, the dividend will be paid on the basis of particulars of beneficial ownership furnished by the Depositories as at the end of business on July 19, 2010

Transfer to Reserves

Company proposes to transfer Rs.34.04 Lacs (7.5% of the net profit for the year) to the General Reserve and an amount of Rs. 2,141.12 Lacs is proposed to be retained in the Profit & Loss account.

Corporate Governance

The Company is being managed in professional manner coupled with transparency and adherence to the legal framework. The Company believes that the Corporate Governance is all about effective management of relationship among constituents of the system, i.e. shareholders, management, employees, customers, vendors, regulatory and the society. The Company has strong belief that this relationship can only be built and strengthen through corporate fairness, transparency, and accountability. A detailed report on Corporate Governance is attached to this Report. The Securities and Exchange Board of India (SEBI) has made efforts to strengthen the Clause 49 of the Listing Agreement. Accordingly, a separate Report on Corporate Governance as well as the Certificate from M/s Maharishi & Co., Chartered Accountants, and the statutory Auditors of the Company are given in the Annual Report.

Conservation of Energy, research and development, technology absorption, foreign exchange earnings and outgo. The particulars as prescribed under Sub-section (l)(e) of Section 217 of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the report of the Board of Directors) RULES 2988, are provided in the Annexure to the directors report section.

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Particulars of Employees

The Company has no employee drawing remuneration exceeding limits as specified .in the Companies (Particulars of Employees) Rules, 1975, as amended till date, and hence, particulars as mentioned in Section 217(2A) of the Companies Act, 1956, are not required to be given.

Directors responsibility Statement as required under Section 217 (2AA) of the Companies Act, 1956 The financial statements are prepared in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and requirements of Companies Act, 1956, to the extent applicable to us and guidelines issued by SEBI on the historical cost convention, as a going concern and on the accrual basis. There are no material departures from prescribed accounting standards in the adoption of the accounting standards.

The Board of Director accepts responsibility for the integrity and objectivity of these financial statements. The accounting policies used in the preparation of the financial statements have been consistently applied except as otherwise stated in the notes accompanying the respective tables. The estimates and judgments related to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present our state of affairs and profits for the year.

The company has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with provisions of the Companies Act, 1956, to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

4.17 COMPARISON WITH INDUSTRY

Competition

Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Bajaj Auto 41,615.32 11,920.98 1,700.11 4,266.92Hero Honda 32,813.65 15,860.51 2,231.83 3,531.05TVS Motor 2,928.91 4,430.13 88.02 1,868.67

Mah Scooters 402.86 4.42 8.41 200.56LML 88.13 315.44 -50.64 -75.57

Kinetic Motor 68.59 6.36 -6.56 25.19Atul Auto 74.31 120.68 3.17 56.82

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4.18 BUDGETING

A budget is a document that translates plans into money - money that will need to be spent to get your planned activities done (expenditure) and money that will need to be generated to cover the costs of getting the work done (income). It is an estimate, or informed guess, about what you will need in monetary terms to do your work. And the process of preparing these budgets is called budgeting.

Budgeting is the key to financial management. The toolkit will help you plan, develop and use budgets effectively in your organization. If you have a sound understanding of the principles of budgeting, you will be well on the way to sound financial management. If you use this toolkit in conjunction with other toolkits, as indicated, you will increase the capacity of your organization to manage its finances effectively. You will also increase its ability to survive through foresight and planning.

DIFFERENT BUDGETING TECHNIQUES:

The two main techniques for budgeting are incremental budgeting and zero based budgeting.

1. Incremental budgets are budgets in which the figures are based on those of the actual expenditure for the previous year, with a percentage added for an inflationary increase for the New Year. This is an easy method that saves time but it is the “lazy” way and is often inaccurate. This budgeting technique is only suitable for organizations where each year is very similar to the previous one in terms of activities. Very few dynamic organizations or projects are so stable that this budgeting technique really works for them.

2. In zero based budgets, past figures are not used as the starting point. The budgeting process starts from “scratch” with the proposed activities for the year. The result is a more detailed and accurate budget, but it takes more time and energy to prepare a budget in this way. This technique is essential for new organizations and projects, but it is also probably the best route to go in a dynamic organization that is proactive in taking on new challenges.

DIFFERENT TYPES OF BUDGETS:

1. Purchase budget

2. Labor budget

3. Production budget

4. Sales budget

5. Capital expenditure budget

6. Cash budget

7. Master budget.

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Atul Auto limited prepares all of the above budgets. Their production is divided into different plant so, they ask their each plant manager to prepare budget and then submit it to the head office at Rajkot and after discussion with top officials and board of directors, they finalize the each department budgets and finally master budget is being prepared.

Each plant manager has to prepare and submit their budget before January and then head office finalize all the budgets before March and start taking actions for the implementation the budget. Performance is being evaluated every quarter and corrective actions are taken accordingly if required. And the technique used for preparing these budgets are incremental budgeting technique and after every 3 years these technique is reviewed and necessary changes in the base are being made.

4.19 INVENTORY VALUATION METHODS

Inventory Valuation: a) Raw Materials and Components, Stock in Process, Finished goods are Valued at cost or net realizable value whichever is lower. Finished goods at factory premises & depots are valued at inclusive of excise duty. b) Stores, Spares and Consumables are valued at cost except certain spares are valued at cost or its fair value whichever is lower. c) Goods / Materials in Transit are valued at cost to date. d) Cost comprises cost of purchase, cost of conversion and other cost incurred in bringing the inventory to present location and condition. Cost is arrived at on weighted average basis. e) Stock for Demonstration lying with third parties at sites are valued at the estimated value of its useful life in relation to its original cost at the time of transfer to the third party.

TENTATIVE CALENDAR FOR DECLARATION OF FINANCIAL RESULTS IN 2010-11

Sr. No.

Particulars Tentative dates

1 Financial Year April 1st To March 31st

2 Results for quarter ending 30th June, 2010 Second week of August, 2010

3 Results for half year ending 30th September, 2010 Second week of November, 2010

4 Results for quarter ending 31st December, 2010 Second week of February, 2011

5 Results for quarter/full year ending 31st March, 2011 Last week of May, 2011

6 Annual General Meeting August/September, 2011

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RISK AND CONCERNS

The company has broadly classified risks as following1. Industry riskA. Technology changesAutomobile industry is now facing tremendous challenge to come in tandem with worldwide insistence on go green approach. Therefore these industry witnesses very fast change in technological development.

B. material supplies and priceincreasing prices of raw material and component like steel, components etc. continued to exercise great strain on profitability of company, though the company did manage to neutralize the impact of cost increase partly by passing on to customer marginally and by cost reduction. However relentless price increase of raw materials and components continue to be an area of concern for industry as well as company.

C. CompetitionThere is competition in industry. This competition also generates the sufficient opportunity for the growth. Aggressive focus on quality, cost and delivery has also been taken up as effective method in safeguarding the company interest and business share.

2. Financial Risk

A. LeverageCompany and the entire automotive industry is influenced by general economic growth , availability of finance and interest rates. The company partly meets this challenge by its associate company financing the vehicles of the company.

Statutory compliances

Company has its legal team in place with appropriate policies towards legal compliance. Continuous monitoring of the business operations by experience team and proper system of reporting to ensure that the company has not defaulted in any statutory compliance.

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Internal control system and its adequacy

The company has well defined organization structure; documents policy guidelines, predefined authority levels and extensive systems of internal controls ensure optimal utilization and protection of resources. IT security, accurate reporting of financial transactions and compliance with applicable laws and regulation. The internal control system is framed to ensure that assets are safeguarded against loss from unauthorized use of disposition, and the transactions are authorized, recorded and reported correctly. The company has budgetary system for control and planning and actual performance is reviewed with budget by the management on an ongoing basis. The company’s internal auditors review business processes and controls. The audit committee of the board then discusses significant finding and corrective measures initiated.

Cautionary management

Statement in this report describing company’s objectives, projection, estimates and expectation may constitute forwarding looking statement within the meaning of applicable laws and regulation. Various information contained in this report has been based on information gathered from various published and unpublished reports and their accuracy, reliability and completeness cannot be assured. The actual result might differ materially from those either express or implied. Factors that could make a difference to the company’s operations include among others, raw materials and component prices, government regulations, tax regimes, economic developments in India, natural calamities and other incidental factors.

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CHAPTER 5

HUMAN RESOURCE

5.1 INTRODUCTION

People are the central to company’s performance and growth and the organization consistently values the contribution and involvement of employees. The company has a comprehensive HR strategy aligned to the business strategy and all people processes are designed to achieve strategy.

The company is consistently focusing on building capability in employees at all levels. The company has robust talent management and succession planning in place and has been taking consistently the talent in pipeline and leadership bandwidth at the highest level in the organization in order to equip the organization to handle both consolidation and growth.

Personnel Department is the part of the management function is primarily concerned with the human relationship with in an organization. Personnel management is concerned with the managerial function (planning, organizing, directing, co-coordinating) and operative functions (procurement, development, compensation, integration, maintenance) with a view to attaching, organization goals economically and effectively and meeting the individual and social goals. So, personnel management is a process of producing the required member and person at the right time on right place for right job and utilizing their ability to achieved goals. We can say that personnel management is that part of management which covers all the important aspects like manpower planning, selection process, method of training & development performance appraisal, promotion, transfer, salary, and industrial relation.

ATUL AUTO LTD has a separate personnel department of its own. It is considered five it as the most important department of industry.

5.2 ORGANIZATION CHART

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PERSONNEL MANAGER

GENERAL MANAGER

ASSISTANT

CLERK TIME MANAGER

5.3 RECRUITMENT

Recruitment is very important for an industrial concern to have efficient and effective personnel with right quality and at right time & at right place available whenever they are needed. Every organization needs employee from time because of retirement or promotion, there is always need of employees in an organization. Recruitment is the process of discovering potential applicants for ensure or anticipated organizational vacancies. Some organization prefers special policy for recruitment of a person i.e. handicapped, minority, groups, woman, friend and relatives of present employees.

Sources of Recruitment

1. Internal Source

2. External Sources

Atul Auto Limited uses both the sources.

1. Internal Source:-

An internal source of recruitment denotes that whatever vacancies are available in the company are filled by transfer of present personal staff i.e. company does not need to depend on outsider employees. Company will have to fill vacancies from present staff by transfer or promotion of staff members.

2. External Source:-

External source recruitment denotes that available vacancies are filled by appointing an employee from outside of the company by following ways ".

1. Advertising Media

2. Newspaper

3. Contact through present employee.

4. Employee agency

5. Unsolicited applications

Methods of Recruitment

There are three types of methods for recruitment.

1. Direct Method

2. Indirect Method

3. Third Party Method

Atul Auto Limited has adopted both types of methods like direct method & indirect method. When recruitment procedure is completed selection procedure starts.

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5.4 SELECTION

Selection means appointed of proper candidate for right post. It is process, which divide prospective candidate into two parts, i.e. who have been given employment & who rejected. In this company following selection procedure is adopted.

Application Blank: -

After the advertisement the candidate is provided with the application blanks. In which they have to fill their information regarding the application. For, application an applicant has to mention name, address, qualification, work, experience signature of applicant etc.

Interviews:-

After collecting applications from applicants’ analysis is being started by the company. Candidate who are found to be suitable & reasonable for the job are called for interview. During the interviewer asks many questions to the applicant. From the answers of applicant, interviewers decide whether he is suitable for the job or not.

Psychological Testing:-

After interview of candidate, if candidate is found to be having all the skills, which are too necessary for a successful worker, then company in whom efficiency of candidate is tested takes psychological test.

Reference Checking:-

In application form, candidate is required to give name & address of two references.

Final Selection:-

After passing from the selection procedure final selection management of the company is done. Then the candidate is finally selected.

5.5 DOCUMENTS RELATED TO RECRUITMENT AND SELECTION

Candidates Qualification Certificate

Past Experience

Identity Card

5.6 TRAINING AND DEVELOPMENT

Training is a process of increasing knowledge and skills of the employee for doing a particular job. It is an organized activity designed a change in the thinking and behavior of people and to enable them to do their jobs in efficient manners.

Various training programmes were organized in ATUL AUTO LTD to employees to advance their knowledge and perform better. Chairman and selection are exposed to the management leadership programmed. Improved behavior and hygienic at training encourage by the experiment also exposed by such a programmed.

ATUL AUTO Ltd. also organized development programmed for the growth of one in all aspects. They also make arrange for the development of the executive.

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5.7 WAGE AND SALARY ADMINISTRATION

“The compensation rendered to the employee of an organization in return for the kind of job done or service rendered is known as wage or salary.”ATUL AUTO Ltd, the salaries that are above 4000 Rs. are paid through cheque of HDFC, SBI, and ICICI.While the salary is below Rs. 4000 paid in cash between the dates of 1 to 7 of the month.The workers get 20% bonus every year from the company. They also get an increment in their salaries every year from 1st April. Thus, the wage and salaries administration of the company is well maintained.

5.8 PROMOTION, DEMOTION AND INCREMENT POLICY

Promotion means an important in pay, prestige, position and responsibility of an employee within the organization. A shifting or an employee to a different job which has latter working hours. Location and more placement working condition do not amount to promotion for the employment only when it carries increased responsibility and enhance pay.

In ATUL AUTO Ltd. there is policy to give promotion to 1 or 2 employee from each department every year. Promotion is given on the basis of department head’s recommendation to the directors and the directors taken the final decision for promotion. The important factors which are considered for promotion of an employee are experience, performance and skills.

TRANSFEROn the other hand, a transfer involves a change in the job of an employee without a change in responsibilities or remuneration. In this organization, transfer take place when there is a shortage of employees in a department or plant because of a heavy demand which necessity takes the increase in the number of shifts, our expansion or production capacity, worker are also transferred from the surplus department to another department or plant when there is a shortage of staff.

In case of transfer policy ‘ATUL AUTO LTD’ does not feel need to have one. An employee is not transferred under general circumstances but in some cases like if a skilled worker is needed at one sales branch as a place, the worker is needed at one sales branch at place them satisfy the branch need.

5.9 PERFORMANCE APPRAISAL PROCESS

“The performance appraisal system is the process of evaluation of an employee’s performance of the job in terms of its recruitment.”In ATUL AUTO LTD the performance of an employee is measured from time to time taking into accounts his work during the year, his period of service, his behavior with other employees and heads.The process of performance appraisal is beneficial to both from the point of view of the company to maintain discipline among the worker and from the point of view of workers for their development.

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5.10 EMPLOYMENT RECORDS KEPT

In ATUL AUTO LTD a record of all the employees are maintained including their past experience, certificate of age group, last qualification, additional training etc. The record is maintained till five years after the employees leave the job. These all records are kept by the head of personnel department.

5.11 OTER FACILITIES

ATUL AUTO LTD has their own private bus for executive officers. Most of officers stay in Rajkot. ATUL AUTO LTD is located 2 K.M far from saper, so there is no bus stop and therefore, for the convenience of officers with nominal charge. The other facilities provided by ATUL AUTO LTD are as follows.

Over time payment:

When any worker works for more than his prescribed duties, called overtime and extra payment is made for the same. The period of over time is not more than four hours in ATUL AUTO LTD.

Canteen:

There is a canteen run by workers of ATUL AUTO LTD it provides tea, coffee, breakfast etc. at a moderate rate.

Quarter facility:

The quarter facility is provided to the workers and a rent is deducted from salary. Quarters are given to only bachelor workers.

Bonus:

Bonus facility is provided to the employees and executive every year in ATUL AUTO LTD bonus is paid 10% of salary at Diwali.

Medical facilities:

ATUL AUTO LTD does not provide any medical facilities but at the time of duty if any workers injures, He is given help of first aid box. Every worker is heart of company. The production work is based on efficient & effective work force. Without good co-operation of workers any organisation won’t survive and make its progress continuously. Each & every company tries to satisfy workers by giving different incentives.

Bus Services

Company has its own travelling bus for employee's benefits. Company provides bus services for its factory to Rajkot city for making easy and comfortable travel. It helps them to reach at proper time & also saves time of employee as well as of company.

Uniform Facility

In this unit all workers who works in production department are given uniform of blue colour and for office staff, the uniform is grey coloured pants and white shirt

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Insurance Facility

In Atul Auto Ltd., all the workers are working in production department are covered with group insurance scheme.

Loan Facility

This unit provides loan to its employees from their own fund.

Increments

After confirmation in their services, all employees are granted increments on 1st April of every year depending on their level in organisation.

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CHAPTER 6

BUSINESS STRATEGY AND OUTLOOK

6.1 SOCIAL RESPONSIBILITY OF THE FIRM

6.2 SWOT ANALYSIS

STRENGTH

Competitive priceMonopoly market in west sideLarge range of productDistribution channelProduct differentiationAutomobile industry is an established and an evergreen industry.

WEAKNESS

Low brand awarenessLimited networkLess sales promotion and advertising

OPPORTUNITY

Product improvementForeign marketStorage is in the heart of the next generation of efforts for fuel economy.More realistic scenario will emerge for technologies using Hydrogen as automotive fuel.

THREATS

Tight competitionGlobal CrisisCompanies not focusing on R & D are under great riskHigh competition from foreign playersLack of technology for Indian companies

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6.3 FUTURE PLANS

In the future, the company will continue following the footsteps of founder and develop more innovative, environment-friendly and practical automobile vehicles considering changes in market trends.

Here are few vehicles which are ready to launch:

Micro Commercial Vehicle to carry 750 Kg. payloads

Petrol 3- Wheelers

CNG operated vehicles

Vehicles running on LPG

Range of Electric Commercial Vehicles

4-Wheeler One Tonner LCV

Multi Purpose Universal Rural Transport Vehicle (RIVL)

6.4 CORPORATE GOVERNANCE

“Corporate Governance is about maintaining an appropriate balance of accountability between three key players; the corporation’s owners, the directors whom the owners elect, and the managers whom the director selects. Accountability requires not only good transparency, but also an effective means to take action for poor performance or bad decisions.”

Company’s philosophy on corporate governanceIt is based on the following principles……

1) Satisfy the spirit of the law and not just the latter of the law. Corporate Governance standards should go beyond the law.

2) Be transparent and maintain a high degree of disclosure levels. When in doubt, disclose.

3) Make a clear distinction between personal conveniences and corporate resources.

4) Communicate externally, in a truthful manner, about how the company is run internally.

5) Have a simple and transparent corporate structure driven solely by business needs.

6) Management is the trustee of the shareholders capital and not the owner.

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6.5 CONCLUSION AND RECOMMENDATIONS

The visit was fruitful of Atul Auto Limited. There was nothing like to suggest inside the company. The management functions are good.

The company must try to sale their vehicles across the Globe.

The company must enhance their network and production capacity.

The company must increase its advertising by using some other Medias of communication to boost their sales.

The organization should focus in the East side of India.

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BIBLIOGRAPHY

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