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AN INDUSTRIAL VISIT REPORT ON

PREPARED BY PARVADIYA ASHISH CLASS


F.Y.B.B.A.

ACADEMIC YEAR
2007-2008

ROLL NO. COLLEGE

SEAT NO.

GUIDED BY SUBMITTED TO

DECLARATION
I undersigned XXXXXXXXXXXX a student of Second Year Bachelor of Business Administration, here by declare that the project work presented in this report is my own work and has been carried out under the supervision of xxxxxxxxxxxxxxxx of

xxxxxxxxxxxxxxxxxx

This work has not been previously submitted to another university for any examinations.

Date: Place: Signature

(xxxxxxxxxxxxxx )

PREFACE
Practical studies important in almost all aspects of human life keeping this in view the S.P.University has included the subject of practical studies in Bachelor of Business Administration. In S.Y.B.B.A. the objective of Industrial visit is to give a respective about the organization and functioning in an industrial unit. It is quite interesting to know practically the aspects of the working of a manufacturing unit. The unit I visited was ATUL AUTO LTD., a leading manufacturer of two or three wheeler commercial vehicles. After the visit I have learnt a lot and have carefully collected the information which is presented here in the best possible manner and to the best of my ability. I am sure this would enhance my knowledge about business practice and management in various fields of Business Administration.

ACKNOWLEDGEMENT
It is my great pleasure to present this report before you. I sincerely thank all officers and staff of ATUL AUTO LTD. for their co-operation during the visit and for providing me the essential details of the working of the company. I am also thankful to Dr. Ajayraj M. Vyas for guiding me through out the preparation of this report and for her valuable suggestions. I would also like to thank our Principal, My Brother, My Last but not the least Parents, My Classmates and my friends for their encouragement and support during the work. I have tried my level best to present the available information in the best possible manner.

Date: Place: RAJKOT Signature

(PARVADIYA ASHISH)

GENERAL INDEX
Sr. No.
1 2 3 4 5 6 7 8 9 10

Particulars
General Information Production Department Personnel Department Marketing Department Finance Department SWOT Analysis Future Plans Suggestions Conclusion Bibliography

Page No.

CONTENTS
Sr. No.
1 2 3

Particulars
History & Development Company Profile Organization Structure

Page No.

History
The unit was initially set up at Jamnagar as a Private limited company on 18th June 1986, under the companies Act 1956. It was registered with the registrar of companies of Maharashtra State and later on transferred its registered office to Gujarat state on 21st January 1992, at Jamnagar City. The company purchased land at Jamnagar & undertook the project however, due to their failure to avail basic infrastructure facilities like electricity at Jamnagar the promoters decided to shift their location to Shapar (Veraval) village of Rajkot. they started the unit there on 1st May 1992. These after, on 12th August 1997 finally the company was converted into public limited company as ATUL AUTO LIMITED. The promoters of the company are Shri Jayantibhai J. Chandra, late Shri Atul J. Chandra and Shri Mahendra Patel. They all are leading industrialists with vast experience of trade and industry.

Company Profile
(a) Name of Company (b) Corporate Office Address : : ATUL AUTO LTD. Jimmy Tower, Opp. Swaminarayan Gurukul, Gondal Road, (c) Registered Address Office : RAJKOT 360 002. Survey No. 86, Plot No. 1 to 4, N. H. 8-B, Tal.: Kotda Sangani, Shapar (Veraval), (d) (e) (f) (g) (h) (i) (j) Year of Establishment Year of Commencement Main Products Production Capacity Form of Organization Size of Unit Names of Promoters : : : : : : : RAJKOT 360 004. 1st May 1992 1st May 1992 Automobiles (Three Wheelers) 1500 Units (Monthly) Joint Stock Company Large Scale Unit Shri J. J. Chandra Shri Atul J. Chandra Shri Mahendra Patel. (k) Board of Directors Shri J. J. Chandra Shri N. J. Chandra Shri M. J. Patel Shri R. H. Druva Shri R. S. Kukreja (l) Shri S. T. Kaneria Auditors : : : : : : : : : : : Chairman & Managing Director Whole Time Director Joint Managing Director Director Director Director M/s. Maharishi & Co. Chartered Accountants JAMNAGAR. 10 acres. State Bank of India ATUL SHAKTI

(m) Total Area Covered (n) Bankers (o) Brand Name

Organization Structure
ATUL AUTO LTD. is a large scale company and this has a vast organization structure. The company has established a network of over hundred dealers all over India and abroad. The organization structure of the company is based on the principles of modern scientific management. The organization structure in detail is given on the next page.

CONTENTS
Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12 13

Particulars
Introduction Organization Structure Production Planning & Control Raw Material Production Process Plant Location Plant Layout Inventory Control Pollution Control Quality Control Scrap & Waste Management Stores Management Material Handling

Page No.

Introduction
Production department is one of the most important departments of any industrial unit. Without this department all the other departments are of no use to the company. Production means the conversion of raw materials into finished products with the help of certain processes. The aim of any production system is to produce the desired goods & services effectively & efficiently. In automobile manufacturing unit should be well versed in terms of technology and equipment to give the best products to its consumers and stay ahead of the competition. Also the scale of production should be large to avail benefits of mass production at both ends of production as well as sales.

Organization Structure
The organization structure is very important in the production department. It clarifies the positions of every employees and the employees come to know what they are expected to do at different levels. ATUL AUTO LTD. has a separate production department. Mr. M. H. Desai is the head of the department.

Chart of Production Department


M.D. J.M.D. D.G.M. (Production) Manager (Production)

Asst. Mgr. (M&C) Sr. Engr.

Asst. Mgr. (Assm) Mechanic s Asst. Mech

Sr. Eng (PDI)

Sr. Eng (F/S)

P.S (I.C.)

Sr. Eng. (Planning )

Sr. Eng. Ind. & Cost

Mechanic Line Insp. s Sr. Tech. Helper

Painters

Jr. Engr.

Welder Fitter

Helper

Tr. Engr.

Helper Helper

Line Insp.

Operator

Helper

Production Planning & Control


The planning and control of production is one of the important problems of production management. It is essential that production is carried on in the best manner at the lowest cost, and the goods are of the right quality and are produced at the proper time. This can be ensured only through proper planning of production. Production control is concerned with direction and guiding production along the lines set up by the planning department. It evaluates the actual performance of the productive apparatus in the light of plans formulated by the planners. In ATUL AUTO LTD., there is a coordination committee for this function. It is done in accordance with demand in market. Production planning is done by the head of the production department. He plans every thing with the help of supervisors. Production control is all in the hands supervisors and the head of the production department. Although the ultimate authority is held by the managing directors and other board of directors and it is delegated to the head of production department (Mr. M. H. Desai).

Raw Material
Raw materials means the materials which are used for the production process. Raw materials includes the materials obtained from land forest etc. It also includes semi finished goods used in the manufacturing process of any product. ATUL AUTO LTD., use raw materials like bright bars, steel sheets, pipes, engine oils, balls bearings, etc. The unit mostly purchases these materials from Ahmedabad depo (TATA). It also uses semi finished products like headlights, wires, handles. It purchases these products from various places like Aurangabad, Delhi, Ahmedabad, & Rajkot.

Production Process
Production process is a process of conversion of various to satisfy the needs of the customers. The difference between the value of inputs and outputs represents the contribution of the production process. It converts the raw materials into finished goods and there by increases its utility. The production process of three wheeler vehicles produced by ATUL AUTO LTD., can be described as follows: In the first phase the aluminum chassis are made with the help of welding & casting machines. This chassis is the base of the product. The company maintains a two days stock of these chassis in the chassis department. So in case of power failure, there is no shortage of chassis in the production process. In the second phase the assembling of various components is made. They fix the wheels, floor and front show. The front show of the vehicles is procured from MITASO COMPANY. For fixing these components, nut balls are used. Which are tapped with the help of guns. Then spray painting of the front show is made. At present the spray painting is done manually but they are planning to use automatic machines for this work in future. The machine (engine) is also attached in this phase. The sub assembly of the machine includes gear box, adapter and C. C. Plague. The gear box cover is procured from Ambala. These components are aligned properly with studs and nuts. This machine (engine) is the most important part of the vehicle.

The next phase includes, passing the units from the manual trollies to the conveyer belt on which they fix the shaft the drivers sear, the front wheels, silencer, drivers handle, whippers, breaks, mirrors, etc. After this 75% of the process is completed. Now checking us made with the help of testing machines. They check the wheels, gears, breaker of the vehicles and sought out the problem if any. The back part of the vehicle is to be painted in the paint stock. The surface is painted using painting guns or spray in the paint booth. Then it is passed on to the dry off over for the purpose of drying at a temp. of 120C to 150C. The painted components are moved to the assembling area in special trolleys. The assembly station is equipped with suitable fixtures storage arrangement for holding components and suitable pneumatic assembly tools. Now the entire vehicle is completed. The assembled vehicles under go a through test of quality control to maintain the level of quality in the market and the satisfaction of the consumer.

Plant Location
The chief object of an industrial concern is to maximize profit through the minimization of cost of production. This is possible when the firm is of the right size and is located at the right place. It must be clearly understood that an optimum location is very much helpful for the functioning of the industry. 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. The ATUL AUTO LTD., is located at Survey No. 86, on National Highway 8-B at Shapar Veraval. The firm selected this location because it is on industrial area and all the facilities like transportation, labor, raw materials, etc. are easily available. The plant location of ATUL AUTO LTD is given as follows:

Plant Layout
Plant layout refers to the arrangement of the physical facilities including production centers for the manufacturing of a product. In thinking of work improvement techniques, the relationship among work centers is one the most important item. The plant layout of ATUL AUTO LTD. is as follows:

Inventory Control
All the goods between the receipt of raw materials and the dispatch of final products to customers are termed as inventory. Inventory includes raw materials, component parts, semi finished and finished products. Inventory control means control over materials lying in store. Inventory control keeps continuous track of inventories. Inventory control aims at the following objectives: (1) (2) (3) Never run out of anything (Out of Stock). Never build up a very large inventory. Never send out too many small costly orders for more. AUTL AUTO LTD., being an automobile industry, has different stores department in which there is a systematic storage of inventories i.e. raw material, semi finished and finished goods. These are five different types of stores department in ATUL ATUO LTD: (1) (2) (3) (4) (5) General Store. Tool Store. Raw Material Store. Fabrication Store. Finished Goods Store.

Pollution Control
Pollution means to make the environment dirty & impure with harmful and poisonous substance. The pollution may be air pollution water pollution, noise pollution, and pollution. Government has now made compulsory for all the industries to lake measures regarding pollution control. In ATUL AUTO LTD., the problem of pollution is nearly nil. This is because no smoke as produced during the production process. Also no water or land pollution being caused by the industry. So the company has received a NO OBJECTION CERTIFICATE from the government.

Quality Control
Quality Control is the control of quality during the manufacturing process. Modern economy under competitive market conditions insist of quality and also cost reduction. A customer in the industrial market considers quality in relation to price and purpose. Quality control detects the causes of variations in the characteristics of products, and indicates the necessary adjustments by which these variations can be controlled. Thus, Quality Control is the systematic control of those variables which affect the excellence (prescribed norms) of the final product. The quality control department of ATUL ATUO LTD., checks the quality of the goods with the help of equipments like crack detector, harness tester, etc. This department checks the quality of raw materials and finished products. Not 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 supervisors of production department in ATUL AUTO LTD.

Scrap & Waste Management


The unnecessary accumulation of absolute, surplus and scrap items is said to be waste and enough capital is blocked in it. The increase in all such items will increase the product cost which in turn will reduce the profits. Therefore efforts should be made manage such scrap and waste materials. The firm, ATUL AUTO LTD., has a special scrap yard in which the scrape from machine shop and fabrication is assembled. This scrap is weekly collected and sold to a person named Abdulbhai. This is a way of income for the company.

Stores Management
Stores management is that aspect of material control concerned directly with the physical storage of goods. The principle function of stores management is to act as a clearing house for goods i.e. receipt goods bought and issue of needed materials in the plant against authorized orders. ATUL AUTO LTD., maintains a computer online system of their own for the purpose of stores management. They make entries for each & every purchase, sale, transfer, goods or materials. This records of every material starting from purchase to final production and finally to sale is maintained in this system. The head of stores management is Mr. J. Mehta.

Material Handling
Material Handling involves the movement of materials from one place to another for the purpose of processing. They are moved either manually or technically with the help of different types of material handling equipments. In ATUL AUTO LTD., material handling equipment used is hydraulic trolley and simple trolley. Simple trolley 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.

CONTENTS
Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12

Particulars
Introduction Organization Structure No. of Employees and Shifts Working hours Recruitment & Selection Training & Development Wages & Salary Administration Promotion & Transfer Performance Appraisal Records of Employees Industrial Relations Grievance Handling System

Page No.

Introduction
The personnel function is concerned with the procurement, development, integration and maintenance of the personnel of an organization for the purpose of contribution towards the accomplishment of the units major goals and objectives. Personnel management is very important in the smooth functioning of any kind of organization. Whether it is a manufacturing firm, a government organization or a non profit making trust or club. Man is an active factor of production which controls and co-ordinates all other factors. ATUL AUTO LTD., has a separate personnel department of its own. It considers it as the most important department of the industry. The personnel manager of ATUL AUTO LTD., is Mr. M. H. Desai.

Organization Structure
An organization structure indicates relationship between the employees of an industrial undertaking. It indicates a clear relationship between authority and responsibility for the employers. In order to solve the problems of the personnel department efficiently and in a responsible manner it has become necessary to establish a separate. Personnel Department in the organization. It shall be responsible for performing all the personnel functions efficiently establishing sound and effective personnel policies practices and programs and taking unbiased decisions in the interest of the labourers. ATUL AUTO LTD., has a separate personnel department as follows:

Chart of Personnel Department


M.D. J.M.D. Manager (P&A) Asst. Manager (P&A)

Sr. Assistant

Jr. Assistant

Bus/Car Driver

Time Keeper

Reception

Sec. Guard

Peon

No. of Employees and Shifts


The number of employees indicates the total employees working in the firm for all the shifts. There are in all 360 employees in the company. Generally, there is one shift for the employees. But if there is overload of work then there is an extra shift (which is in a very rare case).

Morning Shift: Afternoon Shift: Extra Shift: -

9:00 a.m. to 1:00 p.m. 1:30 p.m. to 5:30 p.m. 6:00 p.m. to 9:00 p.m.

Working Hours
The company has a standard time keeping system for working hours. The employee works for 8 hours regularly from 9:00 am to 5:30 p.m. It required they work for extra 3 hours from 6:00 p.m. to 9:00 p.m. The workers or employees generally do not require working overtime. The time discipline is well maintained in the company. Time punching machines are placed. Which, are attached with the computer. Each employee is given a card. Which is to be punched in the punching machine as and when he enters & leaves the factory or working place. This all the records of every employees are received through computers.

Recruitment & Selection


Recruitment is the process of development and maintenance of adequate manpower resources. It is the positive process of employment. The success of any organization depends upon the skill of its employees. Os the process of recruitment plays an important part in the success of the unit. In ATUL AUTO LTD., the recruitment of general managers & above staff is made through newspaper advertising or through NAUKARI.COM site. While the recruitment of functional staff, supervisory staff, computer operators etc. becomes very easily because the company receives daily application for these posts. They, have their data book for all the applications.

Selection
Selection is the process in which candidates for employment are divided into two classes, those who are to be altered employment and those who are not. ATUL AUTO LTD. carries out the selection process to appoint only these persons who are suitable for the job and have better abilities for selection various instruments such as the aptitude test, interviews are used.

Selection Procedure
(1) (2) (3) One-day trial. Personnel Discussions (interviews) Final Selection.

(1)

One day Trail: In this stage the person applying for the job is asked for operating the grinding machine or any other machine to see his skill.

(2)

Personnel Discussions (interview): In this, the person is asked technical questions by personnel department head, which he has to answer based on his knowledge and experience.

(3)

Final Selection: The final selection is made by personnel manager and concerned department head. They select employee on the basis of their qualification, experience & skills.

Training & Development


Training is the act of increasing the knowledge and skills of an employee for doing a particular job. It is a systematic program of the organization which aims at increasing the aptitude skills, and ability of the workers to perform their specific jobs. By training, the employee will acquire the new skills, technical knowledge, problem solving ability etc. At ATUL AUTO LTD. the workers are trained under the guidance of the senior worker of the concerned department or by the training engineer. A training of 1 week is given to the worker and then he is taken as a permanent employee of the company. For the development of the present employees also trainers are called from Ahmedabad. The companys training officers also play a major role for the development of the employees in the way of progress.

Wages & Salary Administration


The compensation rendered to the employees of an organization in return for the kind of job done or service rendered is known as wage or salary. At ATUL AUTO LTD. the salaries that are above 4000 Rupees are paid through cheques of HDFC, SBI & ICICI. While salary below Rs.4000 are 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 on increment in their salaries every year from 1st April. Thus the wages & salaries administration of the company is well maintained.

Promotion & Transfer


Promotion
The term promotion refers to the upward shifting of a personnel where his salary status responsibilities and authorities will be higher than before. In ATUL AUTO LTD. there is 0 policy to give promotion to 1 or 2 employee from each department every year. Promotion is given on the basis of departmental heads recommendation. They recommend to the directors and the directors take the final decision for promotion. The important factors which are considered for promotion of an employee are his experience, performance and skills.

Transfer
Transfer refers to the horizontal shifting of an employee without any change in the salary, status, responsibilities and authorities of the employee. In case of transfer policy, ATUL AUTO LTD. does not feel the 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 at a place, then the worker is provided from other place to satisfy the branchs need. E.g.: If there is shortage of a service engineer in Andhra Pradesh. Then a person is transferred from Maharashtra to Andhra Pradesh for this reason.

Performance Appraisal
The performance appraisal system is the process of evaluation of an employees performance on the job in terms of its requirements. At 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, his time discipline etc. The process of performance appraisal is beneficial 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 self development.

Records of Employees
The personnel department of the unit is assigned the task to maintain up-to-date records of the employees of the organization. At ATUL AUTO LTD. a records of all the employees are maintained including their past experience, certificate of age, group, last qualification, additional trainings (if any), etc. The record is maintained till 5 years after the employee leaves the job. These records are kept by head of the personnel department.

Grievance Handling System


Grievance, as defined by the international labor organization is A complaint of one or more workers in respect of wages, allowances, conditions of work and interpretation of service stipulations, covering such areas as overtime, leave, transfer, promotion seniority, job assignment and termination of service. The administrators of an organization put in their best efforts in the formulation and implementation of the policies, programmes and procedures which would best enable them to handle employees grievances. These policies, programmes and procedures are generally known as grievance handling procedure or system. In ATUL AUTO LTD. the procedure for grievance handling is fixed i.e. whenever a grievance arises among workers, firstly it is handled by the departmental head. If he fails to solve it the problem goes to the personnel head and if he too fails in the settlement of that grievance the board of directors have to handle the case. It for instance, a workers behavior is undesirable, he is first given an oral notice regarding it. If he doesnt improve, he is given written notice and even if he fails in improving himself, he is given transfer or demotion and finally he is terminated if he remains the same. This is now Grievance Handling System in ATUL AUTO LTD. works.

Industrial Relations
The term Industrial Relations is used to refer to the relations between the parties concerned with industry. The two parties which come into direct contract with each other are the workers and the management representing the employee. Both the parties have a common interest in industry and yet there are various occasions when there is difference of opinions among them. In ATUL AUTO LTD., there is an environment of peace and harmony among the workers and employees. So these is an absence of any trade unions in the company as it is not required.

CONTENTS
Sr. No.
1 2 3 4 5 6 7 8 9 10

Particulars
Introduction Organization Structure Market Segmentation Market Research Products & Product Related Strategies Pricing Policies Promotion Mix Advertising Channels of Distribution Exports Competitors

Page No.

Introduction
Marketing occupies an important position in the organization of a business unit. As traditionally defined Marketing consists of these efforts which effect transfers in ownership of goods and care for their physical distribution. F.E. Clark The 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 customers. Marketing is the function of business concerned with the creation of a customer. Peter Drockes. Thus the modern concept of marketing focuses on the Consumer and the satisfaction of his needs.

Organization Structure
Chart of Marketing Department
M.D. J.M.D. G.M.

Zonal Manager (NW)

Zonal Manager (CZ)

Zonal Manager (WZ)

Zonal Manager (SZ)

Zonal Manager (EZ)

Area Manager

Area Manager

Area Manager

Area Manager

Sales Officer

Service Engr.

Sales Officer

Service Engr.

Sales Officer

Service Engr.

Sales Officer

Service Engr.

R.O. E+E

Sr. Asst.

Sr. Mgr. (S&S) Sr. Engr.

Ast. Sales

Comp. Optr.

Dirver

Jr. Engr.

Peon

Supsr.

Sr. Asst.

Mech.

Jr. Asst.

Helper

Helper

Market Segmentation
Market Segmentation is the process of taking the total homogeneous market for a product and dividing it into several but markets and segments. The process of market segmentation can be carried out on the basis of geographical area age, sex and personal preference of the customer etc. Market segmentation in ATUL AUTO LTD. is not done. The company is having only one segment. Hence segment wise bifurcation is not required to be given.

Market Research
Marketing Research is the systematic recording and analyzing the data relating to the marketing of goods and services. Marketing research is the branch of marketing information system. The term market refers to the actual & potential consumers. ATUL AUTO LTD. has a special R & D department (Research & Development) which carries out market research for the following purposes: It provides them with the information about the needs wants and performances of the consumers. It provides them the information regarding the current demand analysis in the market. So as to predict their sales fore cast. It helps them in the fixation of the prices of their products. It helps them to modify their products according to the current trends and preferences of the customers.

Products & Product Related Strategies


A product is anything that can be offered to a market for acquisition, use or consumption that might satisfy a want or need. In marketing management, product planning is the first and most important step in the process. It occupies an important place as it is fully under the control of the organization. A good product can set the game of market capturing in favor of the company. The products of ATUL AUTO LTD. may be divided under two categories passenger and loading. They are available in RTOs fix colors i.e. Grey & Yellow.

(1)

Passenger: 6 Passengers + 1 Driver. 3 Passengers + 1 Driver. 4 Passengers + 1 Driver.

(2)

Loading: Delivery Van. Pick up Van Highdeck. Pick up Van Standard. Tipper. Chicken Carrier. Water Tanker. Soft Drinks Carrier.

Blue, etc.

Mobile Shop.

These vehicles are available in various colors viz, Yellow, Red,

In todays highly competitive world. ATUL AUTO LTD. has set up product planning on the basis of market demand. Competitors and other factors.

Pricing Policies
An important function closely allied to selling is that of determining the price policy to be followed by a concern. At ATUL AUTO LTD. the pricing decisions are taken by the top level management. The company does not adopt any specific pricing policy but it keeps the following factors in mind while pricing its products: Cost of production. Prices of its competitors. Normal profit. Cost of advertisement. Cost of transfer & distribution. Taxation. Dealers Margin. For pricing their products in international markets the company takes into account the following additional factors into consideration. Export packing costs. Market condition of that country. Export duties. Cost of preparation of export documents.

Promotion Mix Advertising


Promotion consists of a diverse collection of effective tools, mostly short term, designed to stimulate quicker and / or greater purchase of a particular product. During festivals like Diwali, Janmashtami, etc. ATUL AUTO LTD. offers free mobiles, T.Vs, DVDs etc. for the purpose of their products promotion.

Advertising
Advertising is a non-personal communication advertising may be made throw newspapers, pamphlets, TV, Radios, etc. Advertising is one channel of information for consumers. They get to know about new products, product improvements, price changes, packaging innovations, special credit terms and so on from advertising. ATUL ATUO LTD. have chosen newspaper and their primary mode for advertising. The company selected this mode because newspapers are affordable also to the lower & medium class people who are their main customer. Also they advertise their product in the regional language for the convenience of their customers. Besides they also use holdings and pamphlets for the purpose of advertising.

Channels of Distribution
The term Channels of Distribution is used to refer to the various alternative link roads which connects the producer with the consumer. The possible paths by which products may be channelised to the consumer are varied in number and character. The company ATUL AUTO LTD. follows a simple channel of distribution:

Manufactures Main Dealers Sub Dealers Customers


Thus, the products manufactured by then are sent to the main dealers at various states. Then the sub dealers and finally to the customers.

Exports
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 this vehicles mainly for transportation or as load carrier. The company with its brand name KHUSHBU has exported in Asian and African Countries.

Competitors
The competitors play an important role of the functioning of the unit and prices of the products. The competitors of ATUL AUTO LTD. are:

Bajaj Piojjio Scoter India Ltd. Local Manufacturers like Pals, etc.

CONTENTS
Sr. No.
1 2 3 4 5 6 7 8 9 10

Particulars
Introduction Organization Structure Financial Planning Capitalization Capital Structure Fixed Capital Management Working Capital Management Receivables Management Cash Management Profit & Profitability

Page No.

Introduction
Financial Management is concerned mainly with such matters as how a business unit raises its finance and how it makes use of it efficiency.

- Hogland.
In simple words, it means raising of adequate funds to the minimum cost and using them effectively in business. It is mainly concerned with the financial problems of the business. The finance department has to cover a long range of functions such as maintaining adequate funds on hand to meet expenses of both revenue and capital nature. Smooth availability of finance for running the enterprise and easy availability of finance for the expansion of the business as and when needed, determine the success of the financial management.

As of Financial Management
Anticipating Financial Needs. Acquiring Financial Resources.

Financial Management

Allocating Funds in Business. Administrating the Allocation of Funds. Analyzing the Performance of Funds. Accounting and Reporting to Management.

Organization Structure
Chart of Finance Department
M.D. J.M.D. G.M. (Finance) Sr. Manager (Accounts)

Asst. Manager (Acct.)

Asst. Manager (Excise)

Sr. Asst. (Excise) Sr. Asst. (Acct.) E.D.P. Officer Jr. Asst. (Excise) Jr. Asst. (Acct.) Comp. Optr.

Comp. Optr.

Peon

Financial Planning
Finance is undoubtedly the life blood of the business. The ambitious plans of a businessman would remain mere dreams unless adequate money is available to convert them into reality. One of the most important function of the financial manager is that of planning. Financial Planning is mainly concerned with the economical procurement and profitable use of funds which is characterized by realistic investment decisions. The company ATUL AUTO LTD. gives good weitage to financial planning to facilitate the availability of funds at the right time to meet their demand for capital both fixed as well as working. The company, ATUL ATUO LTD. prepares a financial plan keeping in view the following points: Amount needed for working capital. Cost of fixed assets and their maintenance. Amount to be kept aside for salaries and wages. Amount to be paid as bonus. Other office expenses. Cost of maintenance of vehicles. Amount to be kept aside for contingencies.

Capitalization
Capitalization comprises of a companys ownership capital which includes capital stock and surplus in whatever form it may appear and borrowed capital which consists of bonds or similar evidences of long term debts.

- Gerstenbug.
If capitalization of a company is just equal to its requirements it is considered to be properly capitalized. If it is more than required, it is considered to be over-capitalized. Similarly if the capital is less than the required amount, it is said to be under capitalization. The capitalization of ATUL AUTO LTD. is as follows:

Authorized Capital: 80,000,000

Paid up Capital: 53,515,200

Capital Structure
Capital Structure of a Company refers to the make-up of its capitalization.

- Gerstenberg.
However, in a broader sense, capital structure includes all the long-term capital including loans, debentures, bonds, share issues, reserves, etc. and the components of the total capital. In simple words, capital structure refers to the composition of capital in on organization. ATUL AUTO LTD., has acquired their capital by issue of share capital but it has not issued any preference shores or debentures. The capital structure of ATUL AUTO LTD. is as follows: Share Capital Reserves & Surplus Secured Loans Unsecured Loans 55,844,050 144,149,373 112,784,313 57,813

Fixed Capital Management


Charles Prather says that Fixed Assets are those which of a some what fixed or permanent in nature and are used by the business in its normal operations, they do not include items offered for sale. Fixed Assets (capital) management is the most important task which a management has to face in its day-to-day situations fixed assets includes land, machineries, office building, vehicles, and other equipments used by the enterprise. The details of the fixed assets owned by ATUL AUTO LTD. are as follows:

Particulars
Land Factory Building Building Plant & Machinery Furniture Vehicles Other Assets Windmill Lease land (for windmill)

Net Block
4,659,821 26,817,994 13,801,111 48,316,152 4,070,856 2,826,357 435,204 53,575,833 1,00,000

Grand Total

154,603,328

Working Capital Management


In accounting, Working Capital is the difference between the in low and out low of funds. It is defined as the excess of current assets over current liabilities and provisions. Thus it can be said that: Net = Current Current Working Assets Liabilities Capital At ATUL AUTO LTD. the following currents form its working capital:

Particulars
Current Assets Inventories Sundry Debtors Cash & Bank Balances Loans & Advances - Less Liabilities & Provisions

Amount
72,306,020 62,934,110 11,441,798 56,145,885 55,061,055

= Net Working Capital

147,766,758

Receivables Management
Receivables are the assets which are created as a result of the sale of goods or services in the ordinary course of business. These are known as accounts receivables trade receivables or customer receivables. The following is the amount of receivable i.e. debtors in ATUL AUTO LTD.

Sundry Debtors = 62,934,110

Cash Management
Cash Management is one of the key areas of working capital management. Apart from the fact that it is the most liquid current asset, cash is the common denominator to which all current assets can be reduced because the other major liquid assets i.e. receivables and inventory get eventually converted into cash. This underlines the significance of cash management. The term cash with reference to cash management is used in 2 senses. In a narrow sense it is used to cover currency & generally accepted equivalents of cash such as cheques, drafts, demand deposits in banks, etc. The broader view of cash also includes near cash assets such as marketable securities and time deposits in banks. Cash on hand and balance in bank is one of the most important elements in day to day business life. So different balance of cash is important to maintain on hand. ATUL AUTO LTD. has following cash and bank balance as on 31st March 2005.

Cash on hand: Bank Balance: -

317,031
10,004,477 1,052,877 1,973 65,438 11,441,797

With scheduled bank in Current A/c. With scheduled bank in deposit A/c. With other banks in current A/c. [Citizen cooperative bank Ltd.] With other banks in deposit A/c. [Citizen cooperative bank Ltd.]

ATUL AUTO LIMITED

BALANCE SHEET AS AT 31st MARCH 2005


Particulars Sch. No. As at 31st March 2005 (Amount in Rs.) As at 31st March 2004

A. SOURCES OF FUNDS
(a) Share Holders funds Share Capital Reserves & Surpluses 1 2 55,844,050 144,149,373 199,993,423 3 4 112,784,313 57,813 112,842,125 5 22,200,537 55,844,050 114,024,310 169,868,360 54,158,315 2,089,702 56,248,017 15,526,805

Sub Total
(b) Loan Funds Secured Loans Unsecured Loans

Sub Total
Deferred Tax Liabilities Net

Total

335,036,085

241,643,182

B. APPLICATION OF FUNDS
Fixed Assets
Gross Block Less: depreciation Net Block Working in progress 6 203,357,908 48,754,580 154,603,328 9,706,000 164,309,328 125,716,115 40,935,687 84,780,428 1,827,262 86,607,262

Investments Current Advances


Inventories

22,960,000

22,960,000

Assets

loans

and
8 72,306,020 44,415,465

Sundry debtors Cash and bank balances Loans and advances

9 10 11 12

62,934,110 11,441,798 56,145,885 202,827,813 55,064,055 147,766,757

50,967,303 23,814,848 49,948,717 169,146,333 37,075,840 132,075,493

Sub Total
Less: Current liabilities & provisions Net Current Assets

Total
Notes on A/c. & Significant accounting policies 13

335,036,085

241,643,182

Profits & Profitabilitys


The main purpose of any business unit is to earn profit. Profit is the motivating force for business. It is a yard stick of efficiency in business. Profit is earned by selling a product at a higher price than its purchase price. In the absence of profit the closure of business is imminent. In ATUL AUTO LTD. besides other motives such as fulfilling social responsibilities, providing employment, maintaining prestige etc. profit is kept as the main & primary motive. The profits of ATUL AUTO LTD. has been increasing reasonally beginning. Following is the chart showing profit after taxes & turnover of ATUL AUTO LTD. for the last 5 years: PAT Profit After Taxation.

SWOT Analysis
SWOT analysis means the Strength, Weakness, Opportunities and threats of the company. The same for ATUL AUTO LTD. is given as follows: 1 S (Strength) The strength of ATUL AUTO LTD. is that the prices of the products of this company are comparatively less than its competitors. 2 W (Weakness) So they are able to sale on a large number. Weaker quality material used in their products is the major weakness of the 3 O (Opportunities) company, which they are trying to improve. They have started dealing in 4-wheelers and also planning to introduce LPG and CNG 4 T (Threats) based vehicle which has a bright future. The threat for the company is that as there is an open market in India today, the entry of any American or other countrys company may prove harmful for the company.

Future Plans
The future plans of ATUL AUTO LTD. is as follows: Expanding their markets in four wheeler goods carriers. They are signing a contract with a Chinese company for the supply four wheeler goods carrier. They have a target to produce 5000 units per month before 2010.

SUGGESTIONS
The company has an excellent administration set up and do not feel necessary to suggestions. However, here are few suggestions to the company: The company should advertise its products broadly to increase sales. The company should bring the latest technological up-gradation in its vehicles. The company should try and provide fuel efficient vehicles at affordable prices. The company should try to reduce the noise and air pollution caused by its product KHUSHBU ROAD MASTER.

CONCLUSION
ATUL AUTO LTD. has an all together different outlook in competitors. After the completion of my industrial visit at ATUL AUTO LTD. I would like to conclude that the working of the company is must helped by excellent panel of administrators. The level of efficient administration and maintenance sets a goods example for other in the automobile industry and the company promises itself a bright future by hard work & communicate. The company thus plays a significant role in the economic development of India.

BIBLIOGRAPHY

Organization and Management


- Dr. C. B. Cropta

Modern Business Organization and Management


- S. A. Sherlekar. - V. A. Sherlekar.

Fundamentals of Business Organization and Management


- Y. K. Bhushan.

Financial Management
- P. V. Kulkarni. - B. G. Satyaprasad.

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