A

SUMMER TRAINIG REPORT

ON

DEPARTMENTAL STUDIES
UNDERTAKEN AT

PRESIDENT AUTOMOBILE

Submitted By:
KAUSHAL AMBALIYA
ID NO:3

Guided By:
MR. SHAILESH LIMBAD

BBA PROGRAMME
(year 2016-17)

SHREE J D GABANI COMMWERCE COLLEGE & SHREE SWAMI

ATMANAND SARASWATI COLLEGE OF MANAGEMENT
VNSGU,SURAT
 COLLEGE CERTIFICATE

This is to certify that the summer project report has been prepared by
Kaushal Ambaliya (15BBA003), under my guidance and supervision.
This project is the result of her own work and is of standard expected
from a candidate for the degree of Bachelor of Business Administration
(BBA).

The report submitted towards the partial fulfillment of the requirement

for the degree of BBA during academic year 2016-2017 has been found
satisfactory.

FACULTY GUIDE I/C.

PRINCIPAL

Mr. Shailesh Limbad Dr. P. R.

Patel

Date:15/6/2017

Place: Surat

II
 DECLARATION

I, hereby declare that, this summer training report submitted to Shree J. D.

Gabani Commerce College & Shree Swami Atmanand Saraswati college of
Management, in the fulfillment of requirement of Bachelor of Business
Administration ( BBA) degree, is result of my own work carried out during
May-June 2017.

This project report is entirely an outcome of my own efforts and has not
been previously submitted to any other university or institute for any other
examination and for any other purpose by any other person.

KAUSHAL AMBALIYA

Id No:3

Date: 15/6/2017

Place: Surat

III
 ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of

any task would be incomplete without the mention of the Leaders, whose
constant guidance and encouragement crown all the efforts with success.

We are highly obliged to the Veer Narmad South Gujarat University for
arranging the program of practical training in Bachelor of
BusinessAdministration in such a manner.

we would thank chair person and the other core members and marketing
peoples, who have produced, surrogate which we often discuss about. At least
they gave us permission to work under them and learn the different
strategies.

We would like to acknowledge our sincere gratitude to Mrs. PRIYA TAILOR for
sharing his valuable and constructive ideas and constant motivation, which
were the guiding lines during the entire tenure of this work.

It is our privilege to express our deep sense of gratitude to Mr. SHAILESH

LIMBAD, Assistant Professor, J. D. G. commerce college and swami
atmanand sarswati college of management, Surat for his efforts, guidance,
valuable comments and suggestions for making this project report. He helped
us to complete our report on the practical study and gave contribution to
improve and expand our practical knowledge. I thanks to our principal Mr. P.
R. PATEL.

IV
Finally, we express our intense gratitude to our parents whose blessings has
helped us to translate our efforts into fruitful achievement.

Thank you all for supporting us in making this project reality.

V
 EXECUTIVE SUMMARY

Indian automobile industry has grown and bounds since 1898,a time when
car and truck had touched the Indian streets for the first time.At present it
holds the promising 10th position in the entire world being 1st in two-Wheelers
and 4th in commercial vehicles.

With standing a growth rate of 18% per annum and annual production of
more than two million units it may not be an exaggeration to say that this
industry in coming years will soon touch a figure of 10 million units per year.
The automobile industry-the 9th largest in world with an annual production
of over 2.3 million units in 2008-is expected to become one the major global
automotive industry in the coming years. In this project we have undergone a
detailed analysis o India Automobile Industry by using fundamental and
technical tools. In order to better understand the performance of the industry
we have made comparative analysis of two players i.e. (Mahindra & Mahindra
and President Automobiles). The project report is divided into 7 topics mainly.
The first topic is mainly focused on the INTRODUCTION. The second topic
covers INDUSTRY PROFILE. The third topic covers the HUMON RESOURCE
DEPARTMENT.

The fourth topic covers the DEPARTMENTAL STUDY OF COMPANY as the

production of President Automobile service is not been done at the plant
layout over here. While the fifth topic covers CONCLUSION followed by the
eighth topic BIBLIOGRAPHY.

The automobile industry, one of the core sectors, has undergone

metamorphosis with the advent of new business and manufacturing
practices in the light of liberalization and globalization. The sector seems to
be optimistic of posting strong sales in the couple of years in the view of a
reasonable surge in demand. The Indian automobile market is gearing

VI
towards international to meet the needs of the global automobile giants and
become a global hub. A detailed analysis of Automobile Industry has been
covered in respect of past growth performance. Under this project to better
understand the Industry we have used Fundamental and Technical tools to
make it more authentic and meaningful. An E.I.C approach has been followed
under Fundamental Analysis which covered effect of Recession, the impact of
Inflation, FDIs, Export, and GDP etc. on Automobile industry. The Industry
Analysis has been done with the help of five forces model, BCG matrix, SWOT
Analysis, Industry Life Cycle and the Industry Specific Index. For company
analysis as a part of fundamental tool we have undergone with the analysis of
Mahindra & Mahindra as our leading Indias largest truck and car
manufacturer. The fundamental aspects consists financial and non financial
analysis of the companies. In the technical aspects we have considered share
price analysis, moving average, moving average cross over, Bollinger bands
and M.A.C.D of the companies by keeping Hyundai Mahindra & Mahindra as
our leading company.

At the end conclusion and recommendation have been specified so as to make

the research.

VII
 TABLE OF CONTENTS

SR. TOPIC PAGE

NO. NO.

COMPANY CERTIFICATE I

COLLEGE CERTIFICATE II

DECLARATION III

ACKNOWLEDGEMENT IV

EXECUTIVE SUMMARY VI

TABLE OF CONTENT VIII

01 INTRODUCTION 1

02 INDUSTRY PROFILE 4

03 COMPANY PROFILE 13

04 STUDY OF VARIOUS DEPARTMENT 25

A FINANCE DEPARTMENT 26

B HUMAN RESOURCE DEPARTMENT 49

C MARKETING DEPARTMENT 77

D PRODUCTION DEPARTMENT 94

05 CONCLUSION 102

BIBLIOGRAPHY 104

APPENDIX 106

VIII
 LIST OF TABLES

Sr no Title of table Page

no
1. Top 10 export destination 12
2. Company profile 14
Comparative financial statement
Comparative statement analysis of balance sheet 34
3. for the year 2015 & 2016
Comparative statement analysis of P&L a/c for the 35
4. year 2015 & 2016
Common size financial statement
5. Common size financial statement balance sheet for 37
the year 2015 & 2016
6. Common size financial statement P&L a/c for the 38
year 2015 & 2016
Statement showing working capital
7. Statement showing changes in working capital for 39
the year 2014 & 2015
8. Statement showing changes in working capital for 40
the year 2015 7 2016
Trend analysis
9. Trend analysis of balance sheet for the year 2015 & 41
2016
Ratio analysis
10. Current raio 43
11. Liquid ratio 44
12. Proprietory ratio 45
13. Operating ratio 45
14.
Debtots turnover ratio 46
15.
Net profit ratio 46
16. P & L A/C President Automobiles 48
Employee Categories -Brand and Designation
17. Employee Category 1:Operational-semi skilled,skilled and 53
Highly Skilled
Employee Category 2(a) :Business Associate 54
18. Category(advisor)
Employee Category 2(b) : Business Associate 55
19. Category(Sup/Tech Spl/Co Tech)
Employee Category 2(c) :Business Associate 56
20. Category-sales
Employee Category 3 : Business Partner Category-sales, 57
21. service, spares, administration, F&I
Appendix
22. Profit & loss A/C for the year 2012,2013,2014.2015,2016 107
IX
 LIST OF CHARTS

SR NO TITLE OF CHART PAGE

NO

1. India commerial vehicle market chare 6

2. Passenger vehicle segment 8

3. Utility and light commercial vehicle segment 9

4. Medium and heavy commercial vehicle segment 10

5. Mahindra WIth You Hamesha 107

X
CHAPTER : 1 INTRODUCTION

1
INTRODUCTION

This project is all about M&M and its dealer President Automobiles which is a
part of automotive industry. This project contains the information and data
analysis of whole industry and company.

After introduction second chapter is industry profile which contains the

whole information regarding automobile industry from history to current
situation at various time period and its scope.

Third chapter is company profile which includes all the activities,business

area,history and introduction with profile of Mahindra and Mahindra.This
chapter contains the sub chapter which is a targeted area of our project on
which this project is prepared.It includes the way of working of President
Automobile which is dealer of Mahindra & Mahindra.

Fourth chapter contains the departmental study of Mahindra & Mahindra

and President Automobiles which is targeted area of this project. As per every
business organization this company has also four department,but at
production department President Automobile produces service to the
customer instead of any particular objects.

Introduction of various department

1.Financial department

This department contains the data of meaning,nature,analysis &

methods of financial statement of whole Mahindra & Mahindra.

Methods and tools like

1. Comparative Statements. 2. Common Size Statements.

2
3. Statement showing changes in working capital. 4. Trend Ratios. 5. Ratio
Analysis. It also contains the p&l account of President Automobiles.

2.humon resource department

In this project department study of humon resource management is based on

President Automobiles.

This analysis is based on topics like manpower planning,employee

categories,job description,recruitment process,components of compensation
and performance management system,training need identification ans
separation process.

3. marketing deparyment

This analysis based on the marking situation of Mahindra and Mahindra and
marketing mix of whole company.

4.production/service department

As per your knowledge at any showroom some services is offered by product

manufacturer company and some from dealership. This department study
mentions the information of services which is offered to the customer from
visit of showroom to after sales services.

Then fifth chapter conclusion comes with bibliography and appendix which
mentions the sources of information and data analysis.

3
 CHAPTER : 2
INDUSTRY PROFILE

4
AUTOMOTIVE INDUSTRY IN INDIA

The automotive industry in India is one of the largest in the world with an
annual production of 23.96 million vehicles in FY (fiscal year) 201516,
following a growth of 2.57 per cent over the last year. The automobile industry
accounts for 7.1 per cent of the country's gross domestic product (GDP). The
Two Wheelers segment, with 81 per cent market share, is the leader of the
Indian Automobile market, owing to a growing middle class and a young
population. Moreover, the growing interest of companies in exploring the
rural markets further aided the growth of the sector. The overall Passenger
Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth
expectations for the near future. In FY 201415, automobile exports grew by
15 per cent over the last year. In addition, several initiatives by the
Government of India and the major automobile players in the Indian market
are expected to make India a leader in the Two Wheeler (2W) and Four
Wheeler (4W) market in the world by 2020.

MARKET SIZE
The industry produced a total 14.25 million vehicles including PVs,
commercial vehicles (CVs), three wheelers (3W) and 2W in AprilOctober
2015, as against 13.83 in AprilOctober 2014, registering a marginal growth
of 3.07 per cent, year-to-year.

5
The sales of PVs grew by 8.51 per cent in AprilOctober 2015 over the same
period in the previous year. The overall CVs segment registered a growth of
8.02 per cent in AprilOctober 2015 as compared to same period last year.
Medium and Heavy Commercial Vehicles (M&HCVs) registered very strong
growth of 32.3 per cent while sales of Light Commercial Vehicles (LCVs)
declined by 5.24 per cent during AprilOctober 2015, year-to-year.

In AprilOctober 2015, ottverall automobile exports grew by 5.78 per cent.

PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent,
18.59 per cent and 3.22 per cent, respectively, in AprilOctober 2015 over
AprilOctober 2014.

INVESTMENT

In order to keep up with the growing demand, several auto makers have
started investing heavily in various segments of the industry during the last
few months. The industry has attracted foreign direct investment (FDI) worth
US$13.48 billion during the period April 2000 to June 2015, according to
data released by Department of Industrial Policy and Promotion (DIPP).

6
Some of the major investments and developments in the automobile sector in
India are as follows:

Global auto maker Ford plans to manufacture in India two families of

engines by 2017, a 2.2 litre diesel engine code-named Panther, and a 1.2
litre petrol engine code-named Dragon, which are expected to power
270,000 Ford vehicles globally.
The world's largest air bag suppliers Autoliv Inc, Takata Corp, TRW
Automotive Inc and Toyoda Gosei Co are setting up plants and increasing
capacity in India.
General Motors plans to invest US$1 billion in India by 2020, mainly to
increase the capacity at the Talegaon plant in Maharashtra from 130,000
units a year to 220,000 by 2025.

GOVERNMENT INITIATIVES

The Government of India encourages foreign investment in the automobile

sector and allows 100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:

The Government of India aims to make automobile manufacturing the

main driver of "Make in India" initiative, as it expects the passenger
vehicles market to triple to 9.4 million units by 2026, as highlighted in the
Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced plans to
provide credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is
expected to boost sales in the tractors segment.

HISTORY

In 1897, the first car ran on an Indian road. Through the 1930s, cars were
imports only, and in small numbers.

7
An embryonic automotive industry emerged in India in the 1940s. Hindustan
Motors was launched in 1942, long-time competitor Premier in 1944,
building Chrysler, Dodge, and Fiat products respectively.Mahindra &
Mahindra was established by two brothers in 1945, and began assembly
of Jeep cj-3a utility vehicles. Following independence in 1947, the
Government of India and the private sector launched efforts to create an
automotive-component manufacturing industry to supply to the automobile
industry. In 1953, an import substitution programme was launched, and the
import of fully built-up cars began to be restricted.

A pre-Independence car showroom in Secunderabad

PASSENGER VEHICLES

8
 Hindustan Motors, Calcutta - technical collaboration with Morries
motors to manufacture Morris Oxford models that would later become HM
Ambassador.
Premier Automobiles, Bombay - technical collaboration with Chrysler to
manufacture Dodge, Plymouth and Desoto models and with Fiat to
manufacture the 1100D models which would later with Premier
Padmini range.
Standard Motors Product Of India, Madras - technical collaboration
from Standard-Trimpth to manufacture Standard Vanguard, Standard 8,
10 and later Standard Herald.

UTILITY AND LIGHT COMMERCIAL VEHICLES

Vehicle Factory Jabalpur - started manufacturing Jonga Light Utility

Vehicles and Vahan 1 Ton (Nissan 4W73 Carriers) in India, under license
from Nissan of Japan. They were the main troop carriers of the Indian
Armed Forces and much powerful than any other vehicle of their class.
Mahindra and MAhindra, Bombay - technical collaboration with Willys to
manufacture CJ Series Jeep.
Bajaj Tempo, Poona now force Motors - technical collaboration
with Tempo(company) to manufacture Tempo Hanseat, a three-wheeler
and Tempo Viking and Hanomag, later known as Tempo Matador in India.

9
 Standard Motors Product of India - technical collaboration
from Standard has licence to manufacture the Standard Atlas passenger
van with panel van and one-tonne one tonne pickup variants.

MEDIUM AND HEAVY COMMERCIAL VEHICLES

Vehicle Factory Jabalpur - started manufacturing Shaktiman
trucks with technical assistance from MAN SE of Germany. The trucks
were the main logistics vehicle of the Indian Army with several specialist
variants. VFJ still is the sole supplier of B vehicles to the Indian Armed
Forces.

Vehicle Factory Jabalpur - was established in 1965 in Avadi,

near Chennai to produce tanks in India. Since its inception, HVF has
produced all the tanks of India,
including Vijyanta, Arjun, Ajeya, Bhishma and their variants for
the Indian Army. HVF is the only tank manufacturing facility of India.
TATA Motors, Poona, then known as TELCO - technical collaboration
with Mercedece Benze to manufacture medium to heavy commercial
vehicles both Bus and Trucks.
Ashok Motors, later Ashok Leyland, Madras - technical collaboration
with Leyland Motors to manufacture medium to heavy commercial
vehicles both Bus and Trucks. Ashok Motors also discontinued

10
 its Austien venture formed in 1948 to sell Austin A400 and retooled the
factory to make trucks and buses.

EXPORT
India's automobile exports have grown consistently and reached $4.5 billion
in 2009, with the United Kingdom being India's largest export market,
followed by Italy, Germany, Netherlands, and South Africa.
According to the New York Times, India's strong engineering base and
expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in
the expansion of manufacturing facilities of several automobile companies
like Hundai, Nissan, Toyotta, Valkswagen, and Maruti Suzuki.

In recent years, India has emerged as a leading center for the manufacture of
small cars. Hyundai, the biggest exporter from the country, now ships more
than 250,000 cars annually from India. Apart from Maruti Exports'
shipments to Suzuki's other markets, Maruti Suzuki also manufactures
small cars for Nissan, which sells them in Europe. Nissan will also export
small cars from its new Indian assembly line. Tata Motors exports its
passenger vehicles to Asian and African markets, and is in preparation to
launch electric vehicles in Europe in 2010. The firm is also planning to
launch an electric version of its low-cost car the Tata Nano in Europe and in
the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks
and small SUV models in the U.S. market. Bajaj Auto is designing a low-cost
car for Renault Nissan Automotive India,

Which will market the product worldwide? Renault Nissan may also join
domestic commercial vehicle manufacturer Ashok Leyland in another small
car project. While the possibilities are impressive, there are challenges that
could thwart future growth of the Indian automobile industry. Since the
demand for automobiles in recent years is directly linked to overall economic
expansion and rising personal incomes, industry growth will slow if the
economy weakens.

11
TOP 10 EXPORT DESTINATIONS

India exported $14.5 billion worth of automobiles in 2014. The 10 countries

below imported 47.8% of that total

Rank Country Value (US$) Share

1 United States 1.2 billion 8.4%

2 Mexico $1 billion 6.9%

3 South Africa $888.8 million 6.1%

4 United Kingdom $637.4 million 4.4%

5 Sri Lanka $596.9 million 4.1%

6 Bangladesh $592.1 million 4.1%

7 Turkey $580.4 million 4%

8 Nigeria $546.8 million 3.8%

9 United Arab Emirates $433.6 million 3%

10 Colombia $428.9 million 3%

12
 CHAPTER : 3
COMPANY PROFILE

13
MAHINDRA & MAHINDRA

Mahindra and Mahindra Limited (M&M) is an Indian multinational

automobile manufacturing corporation headquartered
in mumbai, maharashtra, India. It is one of the largest vehicle manufacturers
by production in India and the largest manufacturer of tractors in the
world. It is a part of Mahindra group, an Indian conglomerate.

It was ranked 21st on a list of top companies in India by Fortune india 500 in
2011.

Its major competitors in the Indian market include maruti Suzuki, tata
motors, Ashok Leyland and others

Mahindra Rise

Type Public

Trades As BSE: 500520

BSE SENSEX Constitunt

Industry Automotive

Founded 1945 (Ludhiyana)

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Ananad mahindra (Executive

14
 Chairman)
Pawan Goenka (MD)

Products Automobiles, Commercial

Vehicles, Two-Wheelers

Revenue 72,474
crore (US$11 billion) (2015)
Operatinf 8,793
Income crore (US$1.4 billion) (2015)
Net Income 2,592
crore (US$400 million)
(2015)

Total Assets 61,239

crore (US$9.5 billion) (2015)
Number of 39,276 (March 2016)
employees

Parent Mahindra group

Subsidiaries Mahindra Two Wheeleers

Limites
, SsongYong Mtor Company
, Peugeot
Mtorcycles, B.S.A.company

Website www.mahindra.com

HISTORY

Mahindra & Mahindra was set up as a steel trading company in 1945

in Ludhiyana as Mahindra & Mohammed by brothers K.C. Mahindra
and J.C. Mahindra and Mlik Ghulam Mahummad. After India
gained independence and pakistan was formed, Mohammed emigrated to
Pakistan where he became that country's first finance minister. The

15
(JAHANGIR CHANDRA MAHINDRA AND KAILASH CHANDRA MAHINDRA)

company changed its name to Mahindra & Mahindra in 1948. It eventually

saw a business opportunity in expanding into manufacturing and selling
larger MUVs, starting with the assembly under licence of the Willys Jeep in
India. Soon established as the Jeep manufacturers of India, the company
later commenced manufacturing Light commercial vehicle (LCVs) and
agricultural tractors. Today, Mahindra & Mahindra is a key player in the
utility vehicle manufacturing and branding sectors in the Indian automobile
industry with its flagship Mahindra xuv500 and uses India's growing global
market presence in both the automotive and farming industries to push its
products in other countries.

16
 Mahindra & Mahindra's Kandivali Unit, Auto Sector Main gate overlooking
Western Express Highway, Mumbai.

Over the past few years, the company has taken interest in new industries
and in foreign markets. They entered the two-wheeler industry by taking over
Kinetic Motors in India. M&M also has a controlling stake in the Reva electric
Car Company and acquired South Korea's Ssangyong motor company in
2011.[11] In 201011 M&M entered in micro drip irrigation with the takeover of
EPC Industries Ltd in Nashik.

OPERATIONS

Automobiles

Mahindra & Mahindra, brands its products as "Mahindra",

produces SUVs, saloon cars, pickups, commercial vehicles, and two wheeled
motorcycles and tractors. It owns assembly plants in india, Mainland china,
the United Kingdom, and has three assembly plants in the United States.
Mahindra maintains business relations with foreign companies
like Renault, France.

At the 2008 Delhi Auto Show, Mahindra executives said the company was
pursuing an aggressive product expansion program that would see the
launch of several new platforms and vehicles over the next three years,
including an entry-level SUV designed to seat five passengers and powered by
a small, turbocharged Diesel engine. True to their word, Mahindra &
Mahindra launched the Mahindra xylo in January 2009, selling over 15,000
units in its first six months.

Also in early 2008, Mahindra commenced its first overseas CKD operations
with the launch of the Mahindra Scorpio in Egypt, in partnership with the
Bavarian Auto Group. This was soon followed by assembly facilities in Brazil.
Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik
Ups in single and double cab pick-up body styles as well as SUVs.

17
On 30 July 2015, Mahindra released sketches of a new compact SUV called
the TUV300 slated to be launched on 10 September 2015. The TUV300 design
took cues from a battle tank and used a downsized version of the mHawk
engine found on the XUV500, Scorpio and some models of the Xylo. This new
engine was dubbed the mHawk80.

MILITARY DEFENCE

Mahindra Axe

The company has built and assembled military vehicles, commencing in 1947
with the importation of the Willys Jeep that had been widely used in World
War II. Its line of military vehicles include the Axe. It also maintains a joint
venture with BAE Systems, Defence Land Systems India.

ENERGY

Mahindra & Mahindra entered the energy sector in 2002, in response to

growing demands for increased electric power in India.

Since then, more than 150,000 Mahindra Power Fool engines and Diesel
generator sets (gensets) have been installed in India. The inverters, batteries,
and gensets are manufactured at three facilities
in Pune(Maharashtra), Chennai (Tamil Nadu), and Delhi; and 160 service
points across India offer continuous support to most key markets. Powerol is
present in countries across Latin America, Africa, the Middle East, and
Southeast Asiaand expanding into the United Arab Emirates, Bangladesh,
and Nepal. Mahindra Powerol's energy services consist mostly of power

18
leasing and telecom infrastructure management. In 2006, it became a major
market leader in the telecom segment (and in 2011, its market share passed
45 percent).

Mahindra Cleantech Ltd focuses in eco-friendly, or "green" power. In response

to growing acceptance of solar power, it formed a subsidiary, Mahindra Solar,
in 2010 to offer a range of solar solutions, both off grid and on grid, alongside
Engineering, Procurement, and Construction (EPC).

FARM EQUIPMENT

Mahindra 475 DI 2015, the most popular model in production since 1964

Mahindra began manufacturing tractors for the Indian market during the
early '60s. It is the top tractor company in the world (by volume) with annual
sales totaling more than 200,000 tractors. Since its inception, the company
has sold over 2.1 million tractors Mahindra & Mahindras farm equipment
division has over 1,000 dealers servicing approx. 1.45 million customers.
Mahindra tractors are available in 40 countries, Mahindra Tractors
manufactures its products at four plants in India, two in Mainland China,
three in the United States, and one in Australia. It has three major
subsidiaries: Mahindra USA, Mahindra (China) Tractor Company, and
Mahindra Yueda (Yancheng) Tractor Company (a joint venture with the
Jiangsu Yueda Group).

In addition to tractors, Mahindra sells other farm equipment. It has expanded

its product-line to include farm-support services via Mahindra AppliTrac

19
(farm mechanisation products), Mahindra ShubhLabh (seeds, crop
protection, and market linkages and distribution), and the Samriddhi
Initiative (farm counselling and information services).

The Mahindra Automotive and Farm Equipment Sectors (AFS), is one of the
largest contributors to the Mahindra Group revenue and includes 27
businesses, 18 subsidiaries and 9 companies.The Automotive business
accounts for about 48% of Indias utility vehicle market share and is the
number two CV player in India. The business has a presence in almost every
segment of the automobile industry with a portfolio ranging from SUVs,
luxury UVs, sedans, pick-ups, light, medium and heavy commercial vehicles
to three-wheelers. Their customer base spans rural and urban India.

The Farm Equipment department also has its presence in end-to-end

agriculture value chain providing irrigation, fertilization, seeds through
varied agriculture and allied businesses.

AWARDS AND RECOGNITIONS

Bombay Chamber Good Corporate Citizen Award for 200607.

Businessworld FICCI-SEDF Corporate Social Responsibility Award 2007.
The Brand Trust Report ranked M&M as India's 10th Most Trusted Brand
in its India Study 2014 survey (from 20,000 brands analyzed).
Its Farm Equipment division received the Deming Prise in 2003.
Its Farm Equipment division received the Japan Quality Medal in 2007.
The US based Reputation Institute ranked M&M amongst the top Ten
Indian companies in its 'Global 200: The World's Best Corporate
Reputations' list for 2008.
Bluebytes News rated M&M as India's second Most Reputed Car Company
(reported in their study titled Reputation Benchmark Study) conducted for
the Auto (Cars) Sector in 2012.

20
DEALERSHIP PROFILE
President motors is established on 16 december 2002. From the beginning of
president motors their sales per month average is 62.At present their sales
record has increased abundantly to 1657 per annum which is 145 vehicles
per month and it has also been increased our turnover of president motors
was about 12 crore which is increased growth to 90 crore as of 2011-2012.

President Motors always belevies in three factors,

Their main aim is good manpower

Better working environment
Transparent policies make them business a grand success and
profitable.

Their keen focus area in business through Evaluation on profitability,

infrastructure as well as cost of fund which they always remain their key area
of responsibility . President Motors technicians are experts as they are Co-tec
E-tec Certified and are expert in their field.They have expert advisor to make
us understand according to model wise to provide us with the right feedback
needed to take the right decision.

President motors has exhibited several programs keeping in mind to be the

best service workshop in the city, they have participated in distributing
gifts,rewards,free service kits, free 75 process of service,they also provided
free cleaning vehicle at customer place they are number 1 service provider
and looking for our opportunity to serve the best.they have invited all their
customers for their free check up camp held at their workshop several
services are offered without any charge as self-start checkup, tier checkup
,and top wash for our vehicle.

INFRASTRUCTURE

They are having a workshop located in udhna road No 6 having a large area
provided with huge parking place, waiting area with television, newspaper

21
,and showroom, ,receptionist for all our enquiry,feedback and data, boys for
receiving and delivering our vehicle on our destination to keep our valued
time for other events. Service vehicle in 75 processing checkups then vehicle
is delivered after washing process.

THEIR TEAM

They have a specialized expert team in servicing in any work of engines

structures.
They provide a service complete with a targeted value always in
evidence.
They have a huge place for our complete service activity at their centre.
They have cashless insurance facility for our vehicle.
They are always transparent in their work as after job completion their
service advisor explains bill details to the customer and number of job
done to the vehicle.
They have dedicated crack team to reach out to our destinations to
serve us better.

MISSION AND AIM

we dont have a group-wide mission statement. Our core purpose is what

makes all of us want to get up and come to work in the morning.

-Anand G Mahindra

Indians are second to none in the world. The founders of our nation and of
company passionately believed this. They will prove them right by believing in
themselves and making Mahindra & Mahindra Limited known world- wide for
the quality of its products and services.

22
CORE VALUES

The customer is always right

Dont harm the environment

staf must wear the uniform

Their core values are influenced by their past, tempered by their present,and
will shape their future.They are an amalgam of what they have been , what
they are and what they want to be.

PROFESSIONALISM

they have always sought the best people for the job and given them the
freedom and the opportunity to fraw,They will continue to do so,They will
support innovation and well reasoned risk taking,but will demand
performance.

CUSTOMER FIRST

They exit and prosper only because of the customer.They will respond to the
changing needs and expectations of Their customers speedily,courteously
and effectively.

QUALITY FOCUS

Quality is the key to delivering value for money to their customer. They will
make quality a driving value in their work, in their products and in their
interactions with others.They will do it first time righy.

23
DIGNITY OF THE INDIVIDUAL

They will value individual dignity, uphold the right to express disagreement
and respect the time and efforts of others. Through Their actions, They will
nurture fairness , trust and transparency.

24
 CHAPTER 4 :
STUDY OF VARIOUS DEPARTMENT

25
A : FINANCIAL DEPARTMENT

26
INTRODUCTION

MEANING OF FINANCIAL STATEMENT

"Financial Statement Analysis is largely a study of relationship among the
various financial factors in a business as disclosed by a single set of
statements and a study of the trend of these factors as shown in a series of
statements

-Myer

In India, every company has to present its financial statements in the form
and contents as prescribed under Section 211 of the Companies Act 1956.
The significance of these statements is given below:

(1)Balance Sheet or Position Statement

(2)Statement of Profit & Loss or Income Statement

(1)Balance Sheet or Position Statement:

Balance sheet is a statement showing the nature and amount of a company's

assets on one side and liabilities and capital on the other. In other words, the
balance sheet shows the financial position on a particular date usually at the
end of one year period. Balance sheet shows how the money has been made
available to the business of the company and how the money is employed in
the business.

(2) Statement of Profit & Loss or Income Statement:

Earning profit is the principal objective of all business enterprises and

Statement of Profit & Loss or Income Statement is the document which
indicates the extent of success achieved by a business in meeting this
objective. Profits are of primary importance to the Board of directors in
evaluating the management of a company, It is because of this that the profit
and loss or income statement is regarded as the primary statement and
commands a careful scrutiny by all interested parties. It is prepared for a
particular period which is mentioned along with the title of these statements,
which includes the name of the business firm also.

27
NATURE OF FINANCIAL STATEMENT
Financial statements are prepared for the purpose of presenting a periodical
review or report on the progress by the management and deal with the (a)
status of the investments in the business and (b) results achieved during the
period under review. The data exhibited in these financial statements are the
result of the combined effect of (1)recorded facts, (2)accounting conventions;
(3) postulates or assumptions made to implement convectional procedure (4)
personal judgements used in procedures; (5) accounting standards and the
applications of conventions and postulates and guidance notes.

OBJECTIVES OF FINANCIAL STATEMENT

The objectives of financial statements can be summarized as follows:

1. l. To provide reliable financial information about economic resources

and obligations of a business enterprise.
2. To provide reliable information about the net resources (resources less
obligations) of an enterprise that results from its activities.
3. To provide financial information that assists in estimating the earning
potentials of a business.
4. To provide other needed information about changes in economic
resources or obligation.
5. To disclose, to the extent possible, other information related to the
financial statements that is relevant to the needs of the users of these
statements

IMPORTANCE OF FINANCIAL STATEMENT

The most important objective of financial statements is to present information

for the use of different categories of persons as mentioned below:

l. The Management2. The Public 3. The Shareholders and the Lenders 4. The
Labour and Trade Unions5. The Country and Economy.

LIMITATION OF FINANCIAL STATEMENT

The following are the limitations of the financial statements:

28
 1. Financial statements are essentially interim reports and therefore
cannot be final because the final gain or loss can be computed only at
the termination of the business.
2. Financial statements though expressed in exact monetary terms, are
not absolutely final and accurate,
3. The values ascribed to the assets presented in the statements depend
upon the standards of the persons dealing with them.
4. Financial statements take into consideration only the financial factors,
5. It is not always possible to discover false figures in financial
statements.
6. Financial statements are prepared primarily for shareholders. Other
interested parties have to generally make many adjustments before
they use them profitably.

ANALYSIS OF FINANCIAL STATEMENT

Analysis of financial statements refers to the treatment of information

contained in the financial statement in a way so as to afford a full diagnosis of
the profitability and financial position of the firm concerned.

The process of analyzing financial statements involves the rearranging,

comparing and measuring the significance of financial and operating data.
Such a step helps to reveal the relative significance and effect of items of the
data in relation to the time period and or between two organizations.

Interpretation, which follows analysis of financial statements, is an attempt

to reach to logical conclusion regarding the position and progress of the
business on the basis of analysis. Thus, analysis and interpretation of
financial statements are regarded a complimentary to each other.

METHODS OR TOOLS OF ANALYSING FINANCIA STATEMENTS

Analytical methods and devices used in analyzing financial statements are as

follows:

1. Comparative Statements.

29
2. Common Size Statements.

3. Statement showing changes in working capital.

4. Trend Ratios.

5.Ratio Analysis.

1.COMPARATIVE STATEMENT
These financial statements are so designed as to provide time perspective to
the various elements of financial position contained therein.

Such comparative statements are necessary for the study of trends and
direction of movement in the financial position and operating results. This
calls for a consistency in the practice of preparing these statements,
otherwise comparability may be distorted. Comparative statements enable
horizontal analysis of figures.

In the comparative financial statements, it is difficult to comprehend the

changes over the years in relation to total assets, total liabilities and capital or
total net sales. This limitation of comparative statements make comparison
between two or more firms of an industry impossible because there is no
common base of comparison for absolute figures. Again, for an interpretation
of underlying causes of changes over time period a vertical analysis is
required and this is not possible with comparative statements.

2. COMMON-SIZE STATEMENT
Common size financial statements are those in which figures reported are
converted into percentages to some common base. For this, items in the
financial statements are presented as percentages or ratios to total of the
items and a common base for comparison is provided. Each percentage shows
the relation of the individual item to its respective total.

3. STATEMENT SHOWING CHANGES IN WORKING CAPITAL

30
Working capital refers to the investment by the company in short assets such
as cash marketable securities. Net current assets or net working capital
refers to the current assets less current liabilities.

4 TREND RATIO
Trend ratios can be defined as index numbers of the movements of the
various financial items in the financial statements for a number of periods. It
is a statistical device applied in the analysis of financial statements to reveal
the trend of the items with the passage of time Trend ratios show the nature
and rate of movements in various financial factors. they provide a horizontal
analysis of comparative statements and reflect the behavior of various items
with the passage of time. Trend ratios can be graphically presented for a
better understanding by the management. They are very useful in predicting
the behavior of the various financial factors in future. However, it should be
noted that conclusions s not be drawn on the basis of a single trend. Trends of
related items should be carefully studied, before any meaningful conclusion
is arrived a Since trends are sometimes significantly affected by externalities,
i.e. reasons extraneous to the organizations, the analyst must give due
weightage to such extraneous factors like government policies, economic
conditions, changes in income and its distribution, etc

Limitations of Trend Ratio

(a) If the accounting practices have not been consistently followed year after
year, these ratios become incomparable and thus misleading

(b) Trend ratios do not take into consideration the price level charges

(c) Trend ratios must be always read with absolute data on which they are
based, otherwise the conclusions drawn may be misleading. It may be that a
100% change in trend ratio may represent an absolute change of 1,000 only
in one item, while a 20% change in another item may mean an absolute
change of 1,00,000

(d) The trend ratios have to be interpreted in the light of certain non-financial
factors like economic conditions, government policies, management policies
etc

31
5. RATIOANALYSIS

Ratio analysis is used to evaluate relationships among financial statement

items. The ratios are used to identify trends over time for one organization or
to compare two or more organizations at one point in time, Ratio analysis
focuses on three key aspects of a business: liquidity, profitability, and
solvency.

advantages of ratio analysis

1. Ratio analysis play a significant role in cost accounting, financial

accounting, budgetary control and auditing

2. It helps in the identification, tracing and fixing of the responsibilities of

managerial personnel at different levels.

3 It accelerates the institutionalization and specialization offinancial

management.

LIMITATIONS OF RATIO ANALYSIS

l. Ratio analysis is only a technique for making judgetrents and not a

substitute for Judgement.

2. Since ratios are calculated on the basis of financial statements which are
themselves affected greatly by the firm's accounting policies and changes
therein, the ratios may not be able to bring out the real situations.

3. Ratios are at best, only symptoms; they may indicate what is to be

investigated only a careful investigation will bring out the correct position.

Current Ratio

Current ratio also known as the working capital ratio, is the most widely used
ratio, It is the ratio of total current assets to current liabilities and is
calculated by dividing the current assets by current liabilities.

Liquid ratio

This ratio is also known as Quick Ratio or Acid Test Ratio. This ratio is
calculated by relating liquid or quick assets to current liabilities. Liquid

32
assets mean those assets which are immediately converted into cash without
much loss. All current assets except inventories and prepaid expenses are
categorized as liquid assets.

Proprietory ratio

This ratio is a variant of debt-equity ratio which establishes the relationship

between shareholders' funds and total assets. shareholders' fund means,
share capital both equity and preference and reserves and surplus less losses
This ratio indicates the extent to which shareholders' funds have been
invested in the assets.

Operating ratio

This ratio establishes the relationship between total operating expenses and
sales. Total operating expenses include cost of goods, administrative
expenses and selling & distribution expenses.

Debtors Turnover (Debtors Velocity)

These days some amount of sales always locked up in the form of book debts.
Effcient credit control and prompt collection of amounts due will mean lower
investments in book debts. This ratio measures the net credit sales of a firm
to the recorded trade debtors thereby indicating the rate at which cash is
generated by turnover of receivable or debtors.

Net profit ratio

It indicates the net margin earned in a sale of 100. Net profit is arrived at from
gross profit after deducting administration, selling and distribution expenses;
non-operating incomes, such as dividends received and non-operating
expenses are ignored, since they do not affect efficiency of operations.

33
DATA ANALYSIS & INTERPRITATION

1.comparative statement
(a)Comparative amalysis of balancesheet of Mahindra &
Mahindra ltd for the year 2015-2016

(table no.4.A.1)
Particulars 2015 2016 Increase/decrease( Increase/decrea
rs) se %
Sources of
funds
Total share 295.7 296.32 0.62 0.21
capital
Eqity share 295.7 296.32 0.62 0.21
capital
Reserves 18948.6 21400.0 2451.48 11.46
0 8
Net worth 19244.3 21696.4 2452.1 11.3
0 0
Secured 0 0 0 0
loans
Ubsecured 2620.38 1843.55 -776.83 -42.13
loans
Total debt 2620.38 1843.55 -776.83 -42.13
Total 21864.6 23539.9 1675.27 7.11
liabilities 8 5
Application
of funds
Gross block 11109.9 13738.0 2628.17 19.13
1 8
Les:revaluati 10.79 10.79 0 0
on reserves
Less:accum. 5180.45 5785.22 604.77 10.45
Depreciation
Net block 5918.67 7942.07 2023.4 25.48
Capital work 2178.76 1565.52 -613.24 -39.17
in progress
Investments 13138.1 13520.3 382.21 2.83
6 7

34
 Inventories 2437.57 2687.93 250.36 9.31
Sundry 2558.03 2512.05 -45.98 -1.83
debtors
Cash and 2064.77 2297.03 232.26 10.11
bank balance
Total current 7060.77 7497.01 436.64 5.82
assets
Loans and 4638.12 5876.58 1238.46 21.07
advances
Total 11698.4 13373.5 1675.1 12.53
ca,loans& 9 9
advances
Current 9000.62 10850.1 1849.5 17.05
liabilities 2
Provisions 2068.78 2011.48 -57.3 -2.85
Total CL & 11069.4 12861.6 1792.3 13.93
provisions 0 0
Net current 629.09 511.99 -117.1 -22.87
assets
Total assets 21864.6 23539.6 1671.27 7.1
8 5
Contingent 5419.91 6137.50 717.59 11.69
liabilities
Book 309.85 349.33 39.48 11.3
value(rs)

INTERPRETATION: From the above statement we can conclude that some

value is in positive and some in negative manner so firm can get profit and
loss both. Here shareholder's fund is increasing and unsecured loan is
decreasing. Total liabilities increase and total debts decrease. Here in sources
of funds unsecured loans are decreasing so it is negative and in applications
of funds capital work-in-progress, sundry debtors net current assets are
decreasing where as others are increasing so they are positive.

(b)Comparative Statement of Profit and Loss or Income

Statement
Comparative analysis of P&L of Mahindra & Mahindra ltd. for the year
2015 & 2016

35
 (table no.4.A.2)
Particulars 2015 2016 Increase/decrease( Increase/decrea
rs) se %
Income
Sales 41133.1 43606.6 2473.53 5.67
turnover 1 4
Excise duty 2187.69 2721.66 533.97 19.62
Net sales 38945.4 40884.9 1939.56 4.74
2 8
Other 1184.66 923.59 -261.07 -28.47
income
Stock 323.63 215.8 -107.83 -49.97
adjustment
Total income 39806.4 42024.3 2217.92 5.28
5 7
Expenditure
Raw 27811.6 29935.4 2123.83 7.09
materials 4 7
Power& fuel 222.41 230.64 8.23 3.57
cost
Employee 2316.93 2342.15 25.22 1.08
cost
Miscellaneo 4097.38 4022.31 -75.07 -1.87
us exp.
Total 34448.9 36530.5 2082.81 5.7
expenses 6 7
Operating 4173.4 4570.2 396.78 8.68
profit 3 1
PBDIT 5358.09 5493.80 135.71 2.47
Interest 214.3 155.29 -59.01 -37
PBDIT 5143.79 5338.51 194.72 3.65
Depreciation 974.9 1108.61 133.71 12.06
Profit before 4168.89 4229.90 61.01 1.44
tax
PBT 4168.89 4229.90 61.01 1.44
Tax 847.78 1062.42 214.64 20.2
Reported net 2321.11 3167.48 846.37 26.72
profit

36
INTERPRETATION :From the above statement, total net profit is increase in
2016 as compared to 2015 because increase in sales. Here in incomes stock
adjustment and other incomes decreasing in the year 2016 so it is negative
and in expenditure miscellaneous expenses are decreasing. In incomes Sales
turnover, excise duty, net sales are positive and in expenses Raw Materials,
Power & Fuel Cost and employee cost are positive. Net profit and operating
profit are increased in 2016 as compared to 2015. Total income in increased
by 5.28% in 2016 and total expenses by 5.7% in 2016.

2. Common-Size Statements

(a) Common-size Income statement

:Common size analysis of P&L of Mahindra & Mahindra ltd. For the year
2015 & 2016

(table no.4.A.3)

particulars 2014% 2015% 2016%

Income
Net sales 97.48 97.83 95.92
Other income 1.8 2.97 2.17
Stock adjustment .66 .81 .51
Total income 100 100 100
Expenditure
Raw materials 67.59 64.64 65.95
Power and fuel 0.5 .52 .65
cost
Employee cost 4.89 538 6.73
Miscellaneous 8.56 9.52 11.01
expenses
Interest 0.58 0.49 0.43
Depreciation 1.95 2.26 3.03
Equity dividend 13.95 15.42 10.35
Corporate 1.94 1.73 1.85
dividend tax
Total expenses 100 100 100
INTERPRETATION: The above table profit & loss of the company is converted
in percentage form. And total value is 100 Two years company's performance

37
is measured on the basis of common size statement and the value of the firm
is converted into percentage. On incomes side its not much increased or
decreased whereas on expenses side power & fuel cost are increasing. Here
year 2014 is taken employee cost, depreciation, miscellaneous expenses base
for the years 2015 & 2016 shows that incomes are getting lesser and
expenses which are more as compared to the year 2014.
(b)common size statement

Common size analysis of balance sheet of Mahindra and Mahindra ltd for
the year 2015 &2016

(table no.4.A.4)

particulars 2014% 2015% 2016%

Sources of funds
Total share 1044 1.35 1.26
capital
Reserves 80.32 86.66 90.91
Secured loans 1.43 0 0
Unsecured loans 16.81 11.98 7.83
Total liabilities 100 100 100
Application of
funds
Net block 28.28 27.10 33.74
Capital work in 5.98 9.64 6.65
progress
Unvestments 0 0 0
Inventories 13.66 11.15 11.42
Sundry debtors 12.23 11.7 10.67
Cash and bank 14.37 9.44 9.76
balance
Toyal current 40.26 32.29 31.85
assets
Loans and 22.11 21.21 24.96
advances
Current liabilities 42.28 41.17 46.09
Provisions 10.10 9.46 8.54

38
 Net current 9.99 2.88 2.17
assets
Total assets 100 100 100

INTERPRETATION :The above table balance sheet of the company is

converted into a percentage form and total value of incomes and expenses is
100 each. Three year company performance is measured on the basis of
common size statement and the value of the firm is converted into percentage.
In sources of funds side total share capital & unsecured loans are decreasing
and in application of funds side inventories, sundry debtors, cash and bank
balance & provisions are decreasing. Here year 2014 is taken base year and
2015 & 2016 are compared.

3. statement showing changes in working capital

statement showing changes in working capital of year 2014

&2015

(table no.4.A.5)
particular 2014 2015 Change in working capital
2015(increase) 2015(decrease)
Current assets
Debtors 2509.84 2558.03 48.19
Closing stock 6421.09 5419.91 1001.18
Loans&advances 4539.55 4638.12 98.57
Cash& bank 2950.39 2064.77 885.62
balance
Total current 16420.87 14680.83
assets
Current liabilities
Lianilities 8678.28 9000.62 322.34
Total current 88678.28 9000.62 322.34
liabilities
Working capital 7742.59 5680.21
Change in 9000.62 9000.62
working capital

39
INTERPRETATION: Here in the above statement shows how much change is
there between two years i.e. 2014 and 2015. Current debtors and current
liabilities are shown here and after subtracting them we will get working
capital. Total current assets for year 2014 & 2015 are 16420.87 & 14680.83
whereas total current liabilities for year 2014 & 2015 is 8678.28 & 9000.62.
After subtracting assets & liabilities we get 8678.28 for 2014 and for 2015 we
get 9000.62.

Statement showing changes in working capital of year

2015&2016

(table no.4.A.6)

particular 2015 2016 Change in working capital

2016(increase) 2016(decrease)
Current assets
Debtors 2558.03 2512.05 45.98
Closing stock 5419.91 6137.50 717.59
Loans&advances 4638.12 5876.58 1238.46
Cash& bank 2064.77 2297.03 232.26
balance
Total current 14680.83 16823.16
assets
Current liabilities
Lianilities 9000.62 10850.12 1849.50
Total current 9000.62 10850.12 1849.50
liabilities
Working capital 5680.21 5973.04
Change in 10850.12 10850.12
working capital

INTERPRETATION :Here in the above statement shows how much change is

there between two years i e. 2015 and 2016. Current debtors and current
liabilities are shown here and after subtracting them we will get working
capital. Total current assets for year 2015 & 2016 is 14680.83 & 16823.16
whereas total current liabilities for year 2015 & 2016 is 9000.62 & 10850.12.

40
After subtracting assets & liabilities we get 8678.28 for 2015 and for 2016 we
get 10850.12.

4.Trend Ratios
Trend analysis of balance sheet for the year 2014,2015,2016.

(table no.4.A.7)

Particulars 2014 2015 2016 2014% 2015% 2016%

Sources of
funds
Total share 295.16 295.7 296.32 100 100.183 100.39
capital
Eqity share 295.16 295.7 296.32 100 100.183 100.39
capital
Reserves 16485.24 18948.6 21400.0 100 114.94 129.81
0 8
Net worth 16780.40 19244.3 21696.4 100 114.68 129.30
0 0
Secured 294.1 0 0 100 0 .00
loans
Ubsecured 3451.06 2620.38 1843.55 100 75.93 53.42
loans
Total debt 3745.16 2620.38 1843.55 100 69.97 49.22
Total 20525.26 21864.6 23539.9 100 106.52 114.69
liabilities 8 5
Applicatio
n of funds
Gross block 10242.58 11109.9 13738.0 100 108.47 134.13
1 8
Les:revalua 10.79 10.79 10.79 100 100 100
tion
reserves
Less:accum 4365.63 5180.45 5785.22 100 118.66 132.52
.
Depreciatio

41
 n
Net block 5866.16 5918.67 7942.07 100 100.90 135.39
Capital 1228.44 2178.76 1565.52 100 177.36 127.44
work in
progress
Investmen 11379.85 13138.1 13520.3 100 115.45 118.81
ts 6 7
Inventories 2803.63 2437.57 2687.93 100 86.94 95.87
Sundry 2509.84 2558.03 2512.05 100 101.92 100.09
debtors
Cash and 2950.39 2064.77 2297.03 100 69.98 77.86
bank
balance
Total 8263.86 7060.77 7497.01 100 85.44 90.72
current
assets
Loans and 4539.55 4638.12 5876.58 100 102.17 129.45
advances
Total 12803.55 11698.4 13373.5 100 91.37 104.45
ca,loans& 9 9
advances
Current 8678.28 9000.62 10850.1 100 103.71 125.03
liabilities 2
Provisions 2074.02 2068.78 2011.48 100 99.75 96.98
Total CL & 10752.03 11069.4 12861.6 100 102.95 119.62
provisions 0 0
Net current 2051.11 629.09 511.99 100 30.67 24.96
assets
Total 20525.56 21864.6 23539.6 100 106.52 114.69
assets 8 5
Contingent 6421.09 5419.91 6137.50 100 54.41 95.58
liabilities
Book 272.46 309.85 349.33 100 113.72 128.21
value(rs)

INTERPRETATION: In trend percentage method, total data of the company is

converted into percentage and select one base year i.e. total liabilities in year
2014 is 20,525.56 100 in 2015 is 21,864.68 106.52 and in 2016 is 23539.95.

42
Here total liabilities and assets in 2014 is less than the year 2015 and 2016.
here year 2014 is taken as base so it is taken 100.

5.Ratio Analysis
some ratios are being done which is helpful to know about financial
position of the company in the market. Ratios are as follows:

Current ratio
Liquid ratio
Proprietary ratio
Operating ratio
Debtors turnover ratio
Net profit ratio

Current Ratio

Current Ratio= Current Assets/ Current Liabilities

(table no.4.A.8)

year Current assets Current Current ratio

liabilities
2014 8263.68 8678.26 0.95
2015 7060.37 9000.62 0.78
2016 7497.01 10850.12 0.69

INTERPRETATION: Current ratio of year 2014 is more than 2015 &

2016.Current ratio of 2014 is more than of 2015 and 2016. Here current
assets is divided by current liabilities so we get current ratio. On x axis
there are years and on Y axis there are various percentage. Ratio for the

43
year 2014 is 95%, 2015 is 78% and 2016 is 69%. here we can see that in
2014 the ratio is high and it lows till 78% in 2015 and again lovs till 69%.

Liquid Ratio/ quick ratio

The ratio can be computed as:

Liquid Ratio- Liquid Assets Current Liabilities

Or

Liquid ratio current assets -inventories current liabilities

(table no.4.A.9)

year Current inventories Current Liquid ratio

assets liabilities
2014 8263.68 2803.63 8678.28 0.63
2015 7060.37 2437.57 9000.62 0.51
2016 7497.01 2687.63 10850.12 0.44

INTERPRETATION: Liquid ratio of 2014 is more than that of 2015 &

2016. Here current assets is subtracted inventories and divided by current
liabilities so we get liquid ratio. On X axis there are years and on Y axis
there are various percentage. Ratio for the year 2014 is 63%, 2015 is 51%
and 2016 is 44%. here we can see that in 2014 the ratio is high and it lows
till 51 in 2015 and again lows till 44%.

Proprietary ratio

This ratio is worked out as follows:

Proprietary Ratio= Shareholders' Funds/Total Assets

(table no.4.A.10)

44
 years Shareholders Total assets Proprietary
fund ratio
2014 16780.94 20525.56 0.82
2015 19244.3 21864.68 0.77
2016 21696.1 23539.95 0.92

INTERPRETATION: Proprietary ratio of year 2016 is more than of 2014

and 2015,because there is increase in total assets and shareholders fund.
Here shareholders' fund is divided by total assets so we get proprietary
ratio. On X axis there are years and on Y axis there are various percentage.
Ratio for the year 2 014 is 82%, 2015 is 77% and 2016 is 92%. here we can
see that in 2016 the ratio is high and it lows till 77% in 2015 and strikes at
82% in 2014.

Operating ratio

It is generally expressed in percentage.

Operating ratio =cost of goods sold /net sales * 100

(table no.4.A.11)

year Cost of goods Net sales Operating ratio

sold
2014 36061.96 40508.5 89.02
2015 34448.36 38945.42 88.45
2016 36530.57 40884.98 89.35

INTERPRETATION: Here operating ratio of year 2016 of increase in sales

and cost of goods sold Debtors turnover ratio of 2014 is more than of 2015
and 2016. here credit sales is divided by average debtors so we get debtors
turnover ratio. On X axis there are years and on Y axis there are various
percentage. Ratio for the year 2014 is 17.18%, 2015 is 16.08% and 2016 is
16.37%. here we can see that in 2014 the ratio is high and it lows till 16.08
in 2015 and again high in 16.37%.

Debtor turnover ratio(Debtors Velocity)

45
 Debtors turnover ratio =Credit sales/average debtors

(table no.4.A.12)

Year Credit sales Average debtors Debtors turn

over ratio
2014 43120.18 2509.84 17.18
2015 41133.11 2558.03 16.08
2016 43606.64 2512.05 16.37

INTERPRETATION: Debtors turnover ratio of 2014 is more than of 2015 and

2016. here credit sales is divided by average debtors so we get debtors
turnover ratio. On x axis there are years and on Y axis there are various
percentage. Ratio for the year 2014 is 17.18 2015 is 16.08% and 2016 is
16.37%, here we can see that in 2014 the ratio is high and it lows till 16.08 in
2015 and again high in 16.37%.

Net profit ratio

One of the components of return on capital employed is the net

profit ratio (or the margin on sales) calculated as:

Net profit ratio=net profit/sales * 100

(table no.4.A.13)

years Net profit sales Net profit ratio

2014 3758.35 40508.5 9.28

2015 2321.11 38945.42 5.96

2016 3167.48 40884.98 7.75

46
INTERPRETATION: Net profit is more in 2014 as compared to year 2015
and 2016 it indicates medium operational efficiency of the company. Here net
profit is divided by sales and multiplied by 100 so we get net profit ratio. On X
axis there are years and on Y axis there are various percentages. Ratio for the
year 2014 is 9.28% 2015 is 5.96% and 2016 is 7.75%. here we can see that in
2014 the ratio is high and it lows till 5.96 in 2015 and again high in 7.75% .

47
PRESIDENT AUTOMOBILE

Profit and loss account for the year ending on 31 st

march,2016
(table no.4.A.14)

particulars Sch Amount

NO
(A)income
Sales A/C 13 62,06,18,895.67
Direct incomes 14 2,23,69,108.84
Indirect income 15 7,07,763.20
Increase/decrease in stock 16 1,59,59,815.98

Total(A) 65,96,55,583.69

(B) Expenditure
Purchase A/c 17
Direct expenses 18 59,93,40,003.71
Administrative expenses 19 76,93,440.84
Selling and distribution expenses 20 3,68,88,700.01
Financial expenses 42,63,560.52
21
43,65,870.97

Total(B) 65,25,51,576.05

Net p/l before depreciation and tax 71,04,007.64

Depreciation
Net p/l after depreciation 20,11,128.00
Net p/l carried by balance sheet 50,92,879.64

50,92,879.64

48
B.HUMAN RESOURCE DEPARTMENT

49
INTRODUCTION OF HUMON RESOURCE
MANAGEMENT

Human Resource Management (HRM or HR) is the management of human

resources. It is designed to maximize employee performance in service of an
employer's strategic objectives. HR is primarily concerned with the
management of people within organizations, focusing on policies and
on systems. HR departments are responsible for overseeing employee
benefits design, employee recruitment, training and
development, performance appraisal, and rewarding (e.g., managing pay and
benefit systems). HR also concerns itself with organizational change
and industrial relations, that is, the balancing of organizational practices
with requirements arising from collective bargaining and from governmental
laws.
HR is a product of the human relations movement of the early 20th century,
when researchers began documenting ways of creating business
value through the strategic management of the workforce. It was initially
dominated by transactional work, such
as payroll and benefits administration, but due to globalization, company
consolidation, technological advances, and further research, HR as of
2015 focuses on strategic initiatives like mergers and acquisitions, talent
management, succession planning, industrial and labor relations,
and diversity and inclusion.

50
MANPOWER PLANNING

Manpower planning is the process of arriving at the appropriate number of

trained manpower that is required at the dealership. This calculation should
be aimed at achieving the business volume planned and providing.

The starting point of this process is finalizing the organization structure and
ends at making job descriptions for all the positions in the structures post,
which starts the hiring process.

POLICY NOTE:
1. Every dealership should review during the yearly business planning
process, its structure and manpower requirements. In case of business
exigencies the manpower requirements should be reviewed immediately.

Role Holders Ratios to be maintained

Service Advisor For every 8 vehicles day in workshop

Service Supervisor Min 1 Co Tech (Logan) and 1 each tech spl Co Tech Tech
Spl and 1 supervisor for every 8 veh

Technician 1 For every 2 truck day in workshop

Showroom sales Avg. productivity of 8 new vehicles month

Consultant

Field Sales Consultant Avg. productivity of 6 new vehicles month

ICR(Service) Min 3 in personal W S and 2 in prosper W/S

ICR (Sales) Min 3 in personal S R and 2 in prosper S/R

Hostess Min. 1 for personal S/ R

Hospitality Manager Min. 1 for personal W S

Manager 1 each for Sales, Service and Parts

Cashier Min. 2 in Workshop (1 for every 15 RO's)

51
2. The manpower requirements need to be finalized by the 1st month of new
financial year in consultation with the Area Office personnel.

3. Inadequacy of manpower would reflect poorly on business and also on the

various audits carried out by the organization, and appropriate action would
be initiated if the agreed norms are not adhered to. Please Ensure that the
manpower requirement s are maintained as per the ratio mentioned in the
table below. Geographical spread might necessitate additional manpower for
better coverage.

4. Quality of manpower should be judged by Attitude, Behavior, Action and

Delivery, such that they are able to deliver a Superior Experience to
customers at all stages of interaction.

52
employee categories- bands and designations

In a dealership the employees can be categorized into three bands. The details
are mentioned in the table below.

Grading systems provides growth opportunity to employees, thereby keeping

them motivated to perform well. This in turn results in Superior Customer
Experience.

Band Level Employee Category

Operational (O) Trainee to 01 Semi Skilled, Skilled
and Highly Skilled
Business Associate BA 3 to BA1 Supervisory/
Technical/ Sales
Business Partner BP 1 to BP 4 Management/ Dept
Heads

Employee Category 1: operational Semi Skilled, Skilled and

Highly skilled

(Table no.:4.B.1)

Lev Designa Qualification salary Details Nature of

el tion /Years of Job
Experience
_ Trainee Fresh ITI /Diploma 2000 Stipend
Help in
overhaul
Section, Oil
change
05 Junior 12 month exp +M&M 2500-250-3750 Routin
Mechanic Quick Hit Trg EB-350-5500 Service and
oil changes
04 Mechanic 24 months exp + M & M 3500-350-5250- Suoervisio
basic Trg @ MILE EB-400-7250 n and
brack/Elec
tric
03 Technicia 24 Month 4000-400-6000EB- Engine
n Experience+M&M 500-8500 FIP,Gear

53
 upgrade Trg @ MILE Box,Differe
ntial
,HVAC
02 Expert 36 month Exp.+M&M @ 5000-500-7500 Expert
Technicia MILE(Electric,Electroni EB-700-1100 Diagnostc
n c,Diagnostic) in
particular
area
01 Master 48 month Exp.+ Pass 6000-600-9000 Diagnostic,
Technicia Evaluation EB-750-12750 Power
n Test(Practical & Theory) Train,Drive
Line,Chass
is

Employee Category 2a: Business Associate Category (Advisor)

(Table no.:4.B.2)

Lev Designati Qualification salary Nature of

el on /Years of Details Job
Experience
_ Trainee Fresh 2500-5000 Repaier cost
Degree/Diploma+M stiepand and time
&M Quick hit Trg estimate,home
installation,serv
ice Mktg
BA3 Junior 06 month exp + 4500-600-750 Repaier cost
service MILE ser Adv trg 0 and time
advisor EB-750-1125 estimate, home
0 installation,serv
ice Mktg
BA2 Service 24 months exp. 5500-700-900 Repaier cost
advisor 0 and time
EB-800-1300 estimate,home
0 installation,serv

54
 ice Mktg
BA1 Senior 24 months exp.+ 6500-750-102 Repaier cost
service M&M basic Trg 50 and time
advisor EB-850-1450 estimate,home
0 installation,serv
ice Mktg

Employee Category 2b Business Associate Category

(Sup/Tech Spl/Co Tech)
(Table no.:4.B.3)

Level Designation Qualification salary Details Nature of

/Years of Job
Experience
_ Fresh 2500-5000
Trainee Job
Degree/Diploma+M stiepand scheduling,Di
&M Quick hit Trg agnostic,Qual
ity,Road
Trial,Concern
Reporting.pro
ducctivity,Effi
ciecy
BA3 06 month exp + MILE 4500-600-7500
Junioer service Job
ser Adv trg EB-750-11250
supervisor scheduling,Di
agnostic,Qual
ity,Road
Trial,Concern
Reporting.pro
ducctivity,Effi
ciecy
BA2 24 months exp. 5500-700-9000
Service Job
EB-800-13000
supervisor/tech scheduling,Di
specialis agnostic,Qual
ity,Road
Trial,Concern
Reporting.pro
ducctivity,Effi

55
 ciecy
BA1 24 months exp.+ 6500-750-10250
Senior Cptech
M&M basic Trg EB-850-14500
supervisor/tech specifically
specialist/co-tec for
h (logan) ACTIS,shopfl
oor technical
training,diag
nostic and
concern
reporting

Employee Category: 2c Business Associate category sales

(Table no.:4.B.4)

Lev Designat Qualificatio salary Nature of Job

el ion n /Years of Details
Experience
_ Trainee Fresh 2500-5000 Sales of
Degree/Diplom stiepand vehicles,finance,insuran
a+M&M Quick ce,accessory etc
hit Trg
BA3 Junior 06 month exp + 4500-600- Sales of
sales MILE ser Adv 7500 vehicles,finance,insuran
consultant trg EB-750-11 ce,accessory etc
250
BA2 Sales 24 months exp. 5500-700- Sales of
consultant 9000 vehicles,finance,insuran
EB-800-13 ce,accessory etc
000
BA1 Sr sales 24 months 6500-750- Sales of
consultant exp.+ M&M 10250 vehicles,finance,insuran
/team basic Trg EB-850-14 ce,accessory etc
leader 500

56
Employee Category 3 Business Partner Category Sales,
Service, Spares, Administration, F&I

(Table no.:4.B.5)

Lev Designati Qualificati salary Details Nature of Job

el on on /Years
of
Experienc
e
_ Asst Degree/diplo 7500-900-1200 Dept head
mnager ma EB-1000-1050-17 mktg,sales,service,
250 parts
BA3 Manager Degree/diplo 1020-1000-15200 Dept head
ma with 5 EB-1250-21450 mktg,sales,service,
years exp parts
BA2 Sr manager Degree/diplo 15200-1200-2120 Dept head
ma with 0 EB-1500-28700 mktg,sales,service,
7years exp parts
BA1 General Degree/diplo 35000-5000-5000 Dept head
manager ma with 10 0 EB-7500-87500 mktg,sales,service,
years exp parts

57
JOB DISCRIPTION

Here some job description is mentioned as per different job requierments in

president automobile.

GENERAL MANAGER (SALES OR SERVICE)

KEY PURPOSE
The primary role of a General Manager (Sales or Service) is to manage the
entire dealership or either Sales or Service operations and achieve the overall
dealership objectives of Customer Satisfaction & Business Results.

DUTIES AND RESPONSIBILITIES

Able to developed dealership business plan and departmental
objectives.
Ensure all dealership targets are achieved as per plan.
Should be able to look at operations from macro perspective.
Able to guide his Managers and provide them proper directions.
Ensure all customers who come in contact with any dealership staff
have a pleasant experience.
Able to review various MIS reports and JD Power reports and takes
necessary corrective actions.
Improve CSI SSI RDI or any other customer satisfaction scores.
Meets customers and employees regularly to understand ground
realities.
Able to create a "customer friendly" culture in the organization.
Have good contacts in the industry and business circle.

Band
This job is placed in BP band

SKILLS REQUIREMENT
Should be a strategist.
Needs to be analytical.

58
 Good communicator Should be very good leader.
Must be a good motivator.
Should be good in public relations Needs to be good organizer.
Needs to manage time effectively.
Must have business acumen.
PC literate (MS Word, Excel, Power Point)

Education
Graduate.
Engineering Management qualification preferred.

Experience
Should have headed a small to medium business organization.
Minimum 10 years in a role of a Manager.
Automobile exposure preferred.

59
TECHNICIAN

KEY PURPOSE
The primary role of a Technician is to ensure "First time right" (FTR).

DUTIES AND RESPONSIBILITIES

Ensure that vehicles are repaired as per Ro specification.
In case any extra repair needs to be done, inform Service Advisor and
take his concurrence before doing the same.
Share best practices with the team in meetings.
Ensure high quality of work and care for customer's safety to improve
CSI.
Minimize repeat repair.
Improve workshop productivity and efficiency.
Ensure all processes are adhered to.

BAND
This job is placed in O band

Skills requirement
Should be meticulous in his workmanship.
Should show high degree of accuracy.
Must be very disciplined.
Should exhibit confidence and curiosity to learn.
Must possess good diagnostic skills.
Should have analytical capabilities.
Should have speed in work.
strong technical knowledge.
Able to read technical information in English language

EDUCATION
ITI or Diploma in automobile engineering or AMIE.
EXPERIENCE
Minimum 1 to 2 years experience with any auto garage as a technician.

60
RECRUITMENT PROCESS

This process ensures that the organizational structure is staffed with the
right candidate to deliver the dealership objectives.

GETTING STARTED TO RECRUIT

Once the business planning numbers have been finalized, they have to start
looking at manpower planning Ideally speaking you need to have adequate
manpower to achieve their business plan numbers and provide good after
sales service.

As a thumb rule their sales force should be directly proportional to target

volume of Sales and Service team should be directly related to projected RO's
per day. However there could be exceptions, where they need to cover a large
territory and hence a larger sales force and more service outlets.

IMPORTANCE OF CORRECT HIRING

As a dealership organization they need to understand the importance of
correct hiring. If they over hire, there would be loss in productivity and they
under hire, there would be loss in business opportunity. Hence they need to
arrive at a right number of staff with the appropriate qualification and
experience. Also care needs to be taken while hiring people who have the right
attitude and aptitude towards working in environment that having many
challenges and opportunities with long hours of work.

LOSS DUE TO WRONG HIRING

In case they do not hire the right person, they would to again going through
the process of hiring should be noted that the amount of INVESTMENT in
man-hours of and coaching a consultant to bring them to their optimal
performance they cannot identify the "right" candidate during the hiring
process. As dealership organization they need to spend lot of time in
identifying the right kind of profile who would fit in the role and hire them or
else they will spending their precious resources in only training new would

61
leave them. The implications are quite serious of dealership organization not
being able to achieve its optimal efficiency.

THE RECRUITMENT PROCESS

1. Identification of vacancies
2. Types of hire
3. Sources of candidates
4. Short listing of resumes
5. Conducting the Interview
6. Making an offer/Appointment Letter
7. Joining Formalities
8. Induction Process

1.IDENTIFICATION OF VACANCIES

This is a stage where they will identify the gap between the requirement v/s
actual and then arrive at the number of that they will need to hire for. Please
ensure that they maintain the ideal mentioned in the previous pages. They
have also enclosed the description templates that they can use while
recruiting candidates for the vacancies in their dealership.

2.TYPES OF HIRE
PERMANENT
Permanent employees are on the pay rolls of the organization. They are
eligible for all company benefits.

All key role holders in the organization come under this category, which
include:
Vice President
General Manager
Deputy General Manager (DGM)
Sales Manager//Service Manager/Parts Manger /Works
Manager/Hospitality Manager
Parts Supervisor

62
 Service Advisor
Technician
Service Supervisor T
echnical Specialist
Sales Consultant
Corporate Sales Consultant
Hostess
ICR
F&I Executive
Admin and HR Executive
Cashier
Driver

TEMPORARY
Temporary employees are staffs who are hired for a short period, say 3-6
months. They are usually put on special assignments that are specific in
nature. Some of the assignments that would need temporary staffs include:
Events display
Data entry
Research on particular segment
Accounting during year end
Mystery shoppers

CONTRACT

Contract staffs are those who are on pay rolls of third party (Contractors) who
provide them with specific services, for which a monthly fee is paid Usually
any contract is for a period of 11 months and is extendable. Some of the role
holders that would fall in this category include:
Vehicle Washing boys
Housekeeping
Security staff
Pantry

63
 TRAINEE

Are appointed from local colleges, ITIs or vocational institutes to fill up

developmental positions for sales service marketing roles. These
categories of employees are typically paid monthly stipends.

3. SOURCES OF CANDIDATE:

a. News Paper Advertisements

b. Employee Referral schemes
c. Internet Search
d. Walk-Ins
e. Tie up with local ITI s, vocational institutes for summer
training for apprentice scheme
f. Campus interviews at local colleges for sales positions

they follow a consistent recruitment policy and a rigorous procedure

while selecting candidates that is identified through advertisements in
newspapers or radio, internet search or through Employee Referral.
They have enclosed advertisement templates for their reference and
also a note on the scheme.

4. SHORTLISTING OF RESUMES
This process is critical in sifting resumes from a large pool of applications this
can be called for the interview process. They undertake listing based on Age,
rates process saves interviewing time and also improves hit rates.

5. CONDUCTING THE INTERVIEW

Broadly speaking they can classify interviews into 3 types:
1. Walk ins
2. Response to newspaper advertisement
3. Response to advertisement in the internet

6. MAKING AN OFFER/APPOINTMENT LETTER

64
Once the candidate is selected for the role. A formal offer and appointment
Letter needs to be issued to the candidate, which confirms his selection and
entry into the dealership. Ideally an appointed doctor should screen the
candidate for medical fitness, before he joins the dealership.

7. JOINING FORMALITIES
Once the employee joins the dealership, they will need to complete his joining
formalities, eg issue of IDCard, making a personal file for him/her and taking
all the relevant proofs, certificates & past experience letters and then
introduce him to the team before planning out his Induction in the next
section)

LETTER OF APPOINTMENT (Specimen)

Dealership Name and Address Date.
To
(Name and Address of candidate)
Dear Mr./Ms
Letter of Appointment
Pursuant to our discussions it gives us great pleasure in offering you the post
of in our organization. You will need to join us by.. at the following
address:
You will report to..
You will be on probation for a period of XX months. completion of your
probation, you will be made a permanent employee of the organization.
In case you abstain from duty without notice for more than 7 days your
employment will automatically cease.
Your Salary details are mentioned in attached sheet.
Kindly sign this appointment as a token of your acceptance of this offer.
Let me take this opportunity to welcome you to our organization and hope
that we have a mutually beneficial association!

65
Wishing you all the best!
Yours truly,
For XYZ HR Manager)
Salary break-up
Basic House Rent Allowance (HRA) RS
Conveyance Allowance Rs
Uniform Maintenance Allowance Rs
Medical Rs
Subsidized Lunch Allowance Rs
Shift Allowance (if applicable) Rs
Bonus Rs
Provident Fund (PF) Rs
Employee State Insurance (ESI) Rs
Total Cost to Company (CTC) Rs
I accept the letter of appointment Date Place Signed
.. . .
Signed place date

66
COMPONENTS OF COMPENSATION

As a dealership organization they need to understand the fact that they need
to provide the basic amenities to their staff, what they call as the "Hygiene
Factor" in management. If they can provide these, the chance that their
employees will shift to a competitor is unlikely.
Broadly they can classify compensation as
Fixed
Variable
Statutory
Now lets look at various sub-components in the above classification.

FIXED

Component Things to Consider

Basic When determining Basic Salary,

ask...

How much basic salary can

your dealership afford
to pay each role holder?
How much are my competitors
paying as a basic salary for
each role holder?
Should all employees in a
particular grade receive the
same basic salary?
What percentage of the total
package can I allocate for basic
salary?

The other fixed components could be:

67
 House Rent Allowance (HRA)
Uniform allowance
Conveyance allowance
Medica
Cell phone Subsidized lunch etc
Each of the above could be fixed as per the level of the employee.

VARIABLE
Following are the components that may be considered for variable pay:
Incentive
Bonus
Each dealership organization can devise their own packages as per the policy
agreed.

STATUTORY
Following two are mandatory for all permanent employees of any
organization:
Provident Fund (PF)
Employee State Insurance (ESI)

COMPENSATION FOR PERMANENT EMPLOYEES

Permanent employees of the organization gets all the three components i
Basic, Variable and Statutory.
Kindly refer to would give them a Designations that basic salary range for
each role holder.

COMPENSATION FOR TEMPORARY EMPLOYEES

Certain assignments are temporary in nature. The compensation for these
staff is either on a daily basis or a fee can for the entire project that can be
paid as per agreed installments.

COMPENSATION FOR CONTRACTEMPLOYEES

68
They keep certain role holders on contract for the following reasons:
To counter continuous absenteeism
Non productive and unskilled labour is involved
They can get professional supervision
More accountability
Most roles involve shift work
Difficult to find staff on permanent roles
Productivity is more if through contract
Union reasons
Better control
Some of the role holders who would fall under this category are:
House keeping staff
Water servicing washing certain staff from body shop
Security
Cleaners of vehicle
Pantry boy
The payment is through Contractors, who are registered with the Labour
department. They pay them a consolidated fee.

Reward and Recognition

As an organization they take care of their employees and their families.
Following are some of the benefits that are considered subject to meeting
minimum monthly performance norms.
Dinner coupon at a good restaurant for family at end of 1st year
Discount vouchers for shopping in home stores in dealership city
Company approved doctor for cashless consultation
Company approved barber for cashless haircut
Railway/ bus coupons
Company approved gift shop for cashless purchase of birthday gifts for
children up to age of 10 as mentioned in company records Joining
form, of pre fixed value
Pair of School uniform for technicians children going to school up to
age of 10 years
All the above will help them to create sense of belonging loyalty and their
employees for a longer time.

69
PERFORMANCE MANAGEMENT SYSTEM (PMS)

WHAT IS PMS?
It is a formal, structured system of measuring and evaluating an employee's
job related behaviours and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform more
effectively in the future so that the employee and the dealership both.
Under Performance Management System they are looking at the following
two areas:
Objective setting
Review/Feedback Mechanism Promotion Norms

OBJECTIVE SETTING
They set performance objectives in all the three departments of the
dealership organization, which is:

Sales
Service
Parts and Accessories

Frequency of review the objectives for key role holders on some suggestive(not
exhaustive) parameters.

REVIEW FEEDBACK MECHANISM

In this section they cover the following:

Importance of performance review and feedback

Interval for review
Documentation for review

IMPORTANCE OF PERFORMANCE REVIEW AND FEEDBACK

Companies look forward to comments from Board of Directors or stock
market shifts on how the company's performance is being seen by the owners

70
of the company (ie share holders), likewise employees working for any
organization also are keen to know about how they have performed in the
eyes of their owner (ie Dealership management)

To be fair on employees and prevent appraisals from getting biased because of

a most recent episode or because of some relationship issues, it is always
recommended that performance reviews have right mix of objectivity and
subjectivity.

A performance review is objective on

Business parameters (ie objective Vs delivery).

Sales Volumes
Model Mix Prospects
Accessories
Repair Orders
Revenue
Gross Profit
Service Absorption
Etc, etc

It is subjective with respect to,

description on his contribution towards transformation and growth of

business
Supervisors comments on leadership and other areas

Thus professionally run organizations do not keep expectations to

interpretation. Objectives of key role holders are jointly agreed and
documented at beginning of year. Objectives can be reviewed midway in
case business environment demands. Such an approach provides
opportunity to an employee to show performance vis a vis expected
deliverables.

These Performance Reviews are recommended at 6/12 month's

intervals. by reviews are conducted on structured formats and
documented immediate supervisors with on suggestions and action
plans for improvements, and next review.

71
INTERVAL FOR REVIEW

Ideally speaking they do an informal review every review every six months,
For an informal review they need not month and a formal data, for formal
review it is mandatory that we capture information templates.

72
 TRAINING NEEDS IDENTIFICATION (TNI)

TNI has to be conducted in order to arrive at a training calendar.

Typically in a TNI they map the Skills, Knowledge and Attitude of the
employees and then decide which training needs to be given to a
person.

They have a department training plan as follows:

Type Description who What is When Are there any
of the should the should certification
training Be outcome training be requirements?
Trained? of completed?
training?

Skills
training

Knowledge
training

Attitude
training

Department manager submit the TNI form to the HR dept and get
their approval to intimate employees of the likely training
months/travel requirements.

Training nomination form is filled up and submitted .

Post the training session, the employee submit a one page report &
also conduct a 30 minute session for his her peers/ sub-ordinates on at
least 1 or 2 key leanings of the program attended.

73
TRAINING CALENDAR

Every organization needs to have a training calendar for its employee. It

needs to be prepared at the beginning of the year and circulated to all
employees through the respective department heads. It should be made
mandatory that the appointed employees attend the training without
No operational excuses should be allowed.

At M&M, Mahindra Institute of Learning Excellence (MILE) prepares a

training calendar for the dealership staff at the beginning of the year
and informs the same through offices and a copy of the calendar also
sent to the dealerships. This calendar includes the technical and all
non-technical training for all dealership staff.

SALES

The following programs have been identified for employees in

sales.
SSI 6006 training
Product training
Selling skills- Sales story
Communication skills
Sales process training Basics of automobile
Basics of finance
DMS

SERVICE

The following programs have been identified for employees in

service. CSI 6006 training
Customer Care Process training
Communication skills
Warranty
Product and technical knowledge
Troubleshooting
Attitude training
DMS

74
SPARES

The following programs have been identified for employees in

spares. Inventory management
Housekeeping techniques
DMS

POLICY NOTE

Training of employees is the key to enhance the productivity of the

individual. All dealer organizations need to have a Standard training
plan for their employees",

1. No technician should be allowed to independently work on a

customer's vehicle, unless he undergoes dealership training and
evaluated by Service Engineer.

2. Every technical employee should undergo MILE training within 6

months of joining dealership.

3. Every sales employee should attend Level 1 course within 30 days of

joining dealership and get certified within 6 months of service with
dealership.

4. untrained employee will independently Interact with customer

unless he/she has undergone in-dealership training approved by M&M
area office and accompanied calls with trained dealer employee.

5. TNI form is audit

75
SEPARATION PROCESS

EXIT INTERVIEW

OBJECTIVE
Just like at the time of an employee joining some transactions are
undertaken, they follow some actions when an employee is
organization,

The employee must be released after a his dues are settled dealership.

They also ask the employee to fill up the questionnaire & then conduct
a one This provides a forum through which the departing employee and
meet to discuss the reasons for the employee's decision the
organization

This provides an opportunity for diagnosis and taking suitable

measures based on the feedback given by the departing employee on
various aspects of the organization. Please refer to the exit interview
questionnaire attached may want to castomise it for their dealership.

"Most employees quit bosses not jobs".

It is very important for them as an owner to know the accurate reason

of their employee turnover Exit interview is a simple tool to be executed
by their HR team.

POLICY NOTE
Feedback from the existing employees is captured and maintained.

This information is analyzed and annual basis to capture key reasons

for the separation so that corrective measures can be planed for.
MIS on Exit is made by HR and available for verification.

This information is kept to be maintained both as hard and soft copies

for audit purpose.

76
C.MARKETING DEPARTMENT

77
INTRODUCTION OF MARKETING
MARKETING

Marketing is the study and management of exchange

relationship. The American Marketing Association has defined marketing as
"the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large."

Marketing is used to create the customer, to keep the customer and to satisfy
the customer. With the customer as the focus of its activities, it can be
concluded that Marketing is one of the premier components of Business
Management - the other being Innovation. Other services and management
activities such as Operations (or Production), Human Resources, Accounting,
Law and Legal aspects can be "bought in" or "contracted out".

DEFINITION

The character institute of marketing defines marketing as "the management

process responsible for identifying, anticipating and satisfying customer
requirements profitably." A similar concept is the value-based
marketing which states the role of marketing to contribute to
increasing shareholder value In this context, marketing can be defined
as "the management process that seeks to maximise returns to shareholders
by developing relationships with valued customers and creating a competitive
advantage.

Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because the
academic study of marketing makes extensive use of social
sciences, psychology, sociology, mathematics, economics, anthropology
and neuroscience, the profession is now widely recognized as a science,
allowing numerous universities to offer Master-of-Science (MSc) programmes.
The overall process starts with marketing research and goes through market
segmentation,business planning and execution, ending with pre and

78
post-sales promotional activities. It is also related to many of the creative
arts. The marketing literature is also adept at re-inventing itself and its
vocabulary according to the times and the culture.

MARKETING CONCEPT

The term marketing concept pertains to the fundamental premise of modern

marketing. This concept proposes that in order to satisfy the organizational
objectives, an organization should anticipate the needs and wants of
consumers and satisfy these more effectively than competitors. Marketing
and marketing concepts are directly related.

79
MARKETING MIX OF MAHINDRA & MAHINDRA
Mahindra and Mahindra Ltd is a publicly traded company of Indian origin. It
is associated with automotive industry and deals in manufacturing and
marketing of vehicles. Mahindra and Mahindra Ltd was founded in the year
1945 and currently is a part of Mahindra Group. It is the largest
manufacturer in India in terms of vehicle production and of tractors in the
world. Fortune India 500 ranked it at the 21st position as a top company in
the year 2011. Some of its major competitors are as follows

Tata Motors
Ford
Toyota
Ashok Leyland
Skoda
Maruti Suzuki
Mitsubishi
Hyundai Motors
Honda

THE FOUR PS

In the early 1960s, Professor Neil Borden at Harvard Business

School identified a number of company performance actions that can
influence the consumer decision to purchase goods or services. Borden
suggested that all those actions of the company represented a Marketing
Mix. Professor E. Jerome McCarthy, at the Michigan State University in the
early 1960s, suggested that the Marketing Mix contained 4 elements:
product, price, place and promotion.

80
PRODUCT

The product aspects of marketing deal with the specifications of the

actual goods or services, and how it relates to the end-user's needs and
wants. The scope of a product generally includes supporting elements
such as warranties, guarantees, and support.

Mahindra and Mahindra Ltd is a multinational company that was set up as a

steel trading company. Later it forayed into manufacturing and marketing of
MUVs, agricultural tractors and light commercial vehicles. Its current
product portfolio includes SUVs, LCVs, MUVs, and Pickups, motorcycles,
three-wheelers, saloon cars and tractors.

Mahindra and Mahindra Ltd have ventured in the energy sector to meet
growing electric-power demand in India and have manufactured diesel
generators and Powerful engines. Some of its prominent commercial vehicle
models are as follows-

Mahindra Xylo
Mahindra Scorpio
Mahindra Bolero
Mahindra XUV 500
Mahindra-Renault Verito
Mahindra e20
Mahindra Thar
Mahindra Quanto
Mahindra Scorpio Getaway
Mahindra KUV100
Mahindra TUV300
Mahindra Verito Vibe

Mahindra & Mahindra has a huge product mix with product lines of personal
vehicles, commercial vehicles, electric vehicles, application trucks, trucks,
light trucks and buses. In the personal cars category, Mahindra & Mahindra
has a wide range of Utility vehicles, Multi-utility vehicles, Sports utility

81
vehicles and sedans. Mahindra Bolero has been the one of the best UVs in
India. Mahindra & Mahindra trucks are known to be

82
powerful, durable and reliable. Cars such as Scorpio, KUV100, XUV 500,
Quanto, Xylo, Rexton, Korando, Kyron offer a lot of modern features with the
toughness that Mahindra promises. This gives an insight in the product
strategy in the marketing mix of Mahindra & Mahindra. They come in vibrant
colors ranging from dazzling silver, fiery orange to flamboyant red and
midnight black.
Being an environment conscious company Mahindra & Mahindra is
trying to find environment friendly alternatives, e2o and eSupro are
proof of such commitments. These are the electric cars that Mahindra
& Mahindra is currently offering. E2o is a car whereas eSupro is a
cargo van with zero emissions.
In the commercial cars category Mahindra & Mahindra boosts of
Imperio, Alfa, Bolero pickup, Bolero Camper, Bolero Maxi truck. They
are technologically advanced cargo vehicles used for loading and
unloading. Bolero pickup has been a pioneer in the market for the last
ten years now.

83
PRODUCT FEATURES
Mahindra jeeto

Mahindra Jeeto Diesel is a small segment utility vehicle coming from the
company which has an expertise in the class. It is a lightweight affordable
alternative priced at an ex-showroom tag of just INR 2,31,000. It features a
625cc single cylinder engine which gives out a power of 16 HP and a torque of
38 Nm. The mini truck has a company claimed mileage of 37.6 kmpl.
Mahindra Jeeto S has a payload of 600 kilograms and has a seating capacity
of 2 (Driver + 1 passenger). The truck has a weight of 685 kg and in this
segment this mini truck is a competition to Tata Ace Mint Diesel.

Mahindra imperio

84
Imperio Double Cab VX is a commercial vehicle coming from successful SUV
maker Mahindra. The brand is known for its heavy duty and sturdy four
wheelers, so the commercial vehicle segment is not foreign to them. Mahindra
Imperio comes with a 2489cc diesel engine which generates a maximum
power of 75 bhp @ 3200 rpm and gives out a torque of 220 Nm @ 1400-2200
rpm. The utility vehicle has a payload of 1070 kilograms. It comes with
manual 5 forward and 1 reverse gear transmission. In this segment the Utility
Vehicle faces competition from TATA Xenon and Isuzu D-Max. Mahindra
Imperio is a premium feel vehicle priced at INR 7,27,000 (ex-showroom Delhi).

Mahindra Bolero

Mahindra Bolero is a raunchy powerful four wheeler in the SUV segment. It

has enjoyed a good run in India. Being a performer it comes with a 2523 cc
Diesel engine which gives out a maximum power of 62 bhp @ 3200 rpm and a
maximum torque of 195 Nm @ 1400-2200 rpm. Bolero Diesel has a claimed
mileage of 15.96 kmpl which is quite decent for this segment. It has a ground
clearance of 180 mm and a boot space of 460 litres. Over the past decade it
has always been compared to TATA Sumo with same performance
parameters.

Mahindra Supro Van

Supro is a stylish 8 seater van in the Diesel MUV segment from Mahindra.
Supro ZX is powered by a 909cc direct injection diesel engine which generates
a maximum power of 45 HP @ 3750 rpm and at a torque of 98 Nm @

85
1600-3000 rpm. Mahindra Supro comes with a 33 litre fuel capacity and
comes with 5 forward and 1 reverse gearbox. ZX model is priced at an
ex-showroom cost of INR 4.93 lakhs. In this segment Mahindra Supro is a
rival to Tata venture and Maruti Eeco 7 seater.

Mahindra Scorpio Getaway

Scorpio Getaway Diesel is a pick-up truck version made directly out of

Mahindra Scorpio SUV. It is powered by a 2609cc diesel engine which
generates maximum power of 115 bhp @ 3800 rpm and gives out maximum
torque of 277.5 Nm @ 1700 rpm. The model has been specifically designed as
a commercial vehicle to serve as a payload truck. This truck goes up to a top
speed of 157 kmph and makes it from 0 to 100 kmph in about 21.7 seconds.
The MUV is a segment rival to Tata Xenon and Isuzu D-max pick up truck in
a commercial payload truck segment.

86
PRICE

This refers to the process of setting a price for a product, including discounts.
The price need not be monetary; it can simply be what is exchanged for the
product or services, e.g. time, energy, or attention. Methods of setting prices
optimally are in the domain of pricing science.

At the end of the financial year, 2015 estimated revenues of Mahindra and
Mahindra Ltd was rupees 72,474 crore and net income was rupees 2,592
crores. It has a diversified product portfolio that is targeted towards various
sections of society.

Before setting its own pricing policy it conducts a complete market research
so as to determine what a consumer is actually willing to shed on a particular
vehicle. Mahindra and Mahindra Ltd have adopted a premium pricing policy
for its high-quality products that cater to urban and upper-class people.

It has also maintained mid-premium and fair pricing policy for several other
products as it is purchased mainly by a upper-middle and middle-class
section of society. Brand faces stiff competition from numerous companies
and has implemented competitive prices to retain its position in the consumer
market.

Mahindra & Mahindra has targeted different market segments with their
different vehicles. XUV 500 is for the cosmopolitan population with
international quality car and advance technology and style. Bolero is more for
more price conscious, middle class consumers in smaller towns. Therefore,
the pricing strategy in the marketing mix of the automobiles is done keeping
the market segment and the competitors in mind. The automobiles in the
product portfolio ranges from as low as 4.54 lakhs to 40 lakhs. Mahindra
Scorpio ranges from Rs.8.11 lakhs to Rs.15.05 lakhs. Different versions of
XUV500 can be bought from Rs.12 lakhs to Rs. 17.9 lakhs. Mahindra Thar
ranges from 5.22 lakhs to 8.38 lakhs. Mahindra Rexton is the premium range

87
SUV with superior features in the price range from 20.94 lakhs to 24.74
lakhs. Mahindra & Mahindras commercial vehicles are very popular for their
ruggedness and toughness. Mahindra Truxo ranges from 17 lakhs to 22
lakhs. Mahindra & Mahindra follows competitive pricing as its price range is
very similar to its competitors. In fact, some commercial vehicles are priced
marginally lower than the competitors.

88
PLACE

This refers to how the product gets to the customer; for example, point-of-sale
placement or retailing. This third P has also sometimes been called Place,
referring to the channel by which a product or service is sold (e.g. online vs.
retail), which geographic region or industry, to which segment (young adults,
families, business people), etc. also referring to how the environment in which
the product is sold in can affect sales

Mahindra and Mahindra Ltd have spread its international presence to several
global countries with its headquarters base at Mumbai in Maharashtra. It
started its operations from Ludhiana and opened manufacturing facilities at
Bangalore, Nasik, Haridwar and Zaheerabad in India.

Its overseas assembly plants are at United Kingdom, Mainland China, Brazil
and three facilities in the United States. Its products are exported to countries
like Italy, Egypt, China, South Africa, Latin America, Australia and the United
States. Mahindra and Mahindra Ltd have set up manufacturing plants for
gensets and inverters at Delhi, Chennai and Pune.

It has a widespread distribution channel that includes 500 service points,

500 authorised dealers, 600 stock points and 30 sales offices located across
India and connected by latest and advanced IT structure. Mahindra and
Mahindra Ltd has well-furnished showrooms with capable workforce for
direct dealings with customers. It has set up several service points for
providing after-sales services to its customers.

Mahindra & Mahindra has a distribution network spanning the length and
breadth of India. Mahindra & Mahindra has 300 dealerships spread across
240 cities. Around 1300 up-country outlets have been set up to serve the
rural and semi-urban areas in the country. Mahindra & Mahindra has an
efficient and effective warehouse and clearing and forwarding facility. SRP
group supports Mahindra in logistics and warehousing. Mahindra &
Mahindra has dealerships across the country which are equipped to handle
sales and service for personal and commercial vehicles both. Their network
reaches the remotest of places like Kargil, Port Blair, Barmer and Jaisalmer to

89
name a few. Mahindra & Mahindra has further broadened its horizon by
collaborating with ecommerce platforms giving further boost to the sales for
online customers.

Mahindra & Mahindra has a large customer base in the rural areas but due to
poor infrastructure and lack of facilities it is hard to penetrate the rural
market. Therefore, Mahindra & Mahindra came up with an innovative idea
and helped in developing dealerships infrastructure in the rural areas
through its Samriddhi Centres. Through these centres farmers got valuable
information on weather, crops and farm productivity which attracted the
farmers to these dealerships and turned them into loyal customers.

90
Promotion

This includes advertising, sales promotion, including promotional

education, publicity, and personal selling. Branding refers to the various
methods of promoting the product, brand, or company.

These four elements are often referred to as the marketing mix, which a
marketer can use to craft a marketing plan.

Mahindra and Mahindra Ltd is one of the most popular and recognised brand
names in the automobile sector. In order to retain its top position it has
launched ad campaigns using print and visual medium via newspapers,
magazines, television, radio, back and sides of other vehicles and billboards.

It is connected directly with customers on social networking platforms via

Google+, YouTube, LinkedIn, Twitter and Facebook. Brand realises the power
of celebrity endorsement and has roped in famous actors Kareena Kapoor to
act in its two-wheeler ad campaigns and Varun Dhawan for its Mahindra KUV
100. In the year 2015, actor Prabhas was appointed as its brand ambassador.

The company has been the recipient of several accolades and awards for its
contribution to an auto sector like Car of the Year; Best SUV of the year,

91
Boldness in Business Award and Best Company for CSR in India in the year
2015.

Mahindra & Mahindra advertises very smartly and adequately. Mahindra &
Mahindras Live young, Live free campaign became popular in 2012.
Mahindra & Mahindra follows an aggressive promotional strategy in its
marketing mix. It showed Mahindras portfolio of vehicles in tough terrains of
different parts of India. They made Varun Dhawan as their brand
ambassador to target the younger audience. The advertisement made with
the actor had great content and complimentary music. Their advertising
strategy is not confined to just television. Mahindra & Mahindra do a lot of
print, digital and media advertising as well. They host on ground events like
the Mahindra adventure initiative. Mahindra & Mahindra has a huge fan base
on social media. Various events and contests like the Dubsmash & win
KUV100 contest are played on the social media to create buzz and for
customer engagement. It has around 17 million fans across various brands
and over 40 million views on different videos on YouTube.

Mahindra & Mahindra does a lot of promotion through road show. It is a great
platform in terms of customer engagement and creating an extraordinary
experience. Mahindra organized a multiple city road show to promote
Quanto. It helped the audience relate to the holiday theme of the car. Hence,
this covers the entire marketing mix of Mahindra & Mahindra.

PROMOTIONAL ACTIVITIES

The promotional activities adopted by President Automobiles.

1.Test driving

2.Free driving

3.Hoarding

92
4. Discounts

5.Advertisement in Newspaper and magazines

6.Gift schemes

7.Free services

8.Mileage contents

Promotional expenses have been born by bothPresident automobiles and

M&M,shares in advertisement cost.

93
D.PRODUCTION/SERVICE
DEPARTMENT

94
INTRODUCTION OF PRODUCTION/SERVICE DEPARTMENT

Broadly speaking, customer service can be defined as:"The way a business

looks after its customers"Customer service has to be a team effort and not
just the responsibility of employees who deal with the public directly.

Providing good customer service is a vital part of managing a business. Most

customers have the option to go elsewhere if the quality of customer service is
lacking. On the other hand, good customer service is a source of competitive
advantage.Good customer service leads to customer satisfaction. Satisfied
customers are more loyal and profitable. Dissatisfied customers take their
money elsewhere and tell their friends about the poor service they have
received

Customer satisfaction

The following ideas are usually considered to be fundamental in achieving

customer satisfaction:The product or service must meet customer needs &
wants i.e. it must be of good qualitySales and promotional activities need to
create a positive experience for the customer. For example, the attitudes of
employees who make contact with customers should be positive and
professional

After-sales service should also be positive and appropriate (e.g. user training,
help lines, servicing). Customers often need reassurance after they have
bought something that they have made the right choice, or help in using a
product properly.Customer expectations of good customer service also play a
part in customer satisfaction. These expectations typically include factors
such as:Safety and security

Clear and accurate information

Legal rights to be upheld
Impartiality and objectivity
Complaint, enquiry and suggestion procedures
Special needs catered for (e.g. disability access)

95
MAHINDRA CUSTOMER CARE

Mahindra & Mahindra is the flagship company of the Mahindra Group.

Established in 1945, our core automotive business has grown into market
leadership position whose triple bottom line ethic is driving industry
trends towards technological innovation, social responsibility, and
constantly improving customer satisfaction. Our motivation to give our
best every day comes from our Core Purpose: "We will challenge
conventional thinking and innovatively use all our resources to drive
positive change in the lives of our stakeholders and communities across
the world, to enable them to Rise."

MAHINDRA CUSTOMER ASSISTENCE

Both Mahindra and our Mahindra dealer are dedicated to achieving the
highest level of customer satisfaction with their product. Their Mahindra
dealership is in the best position to assist us with our vehicle, they
recommend that they use the following steps to ensure quickest possible
response.

1.first speak to the service adviser at the dealership. This peron is in the
best position to respond to our concerns.should we require additional
assistance, speak to the service manager/general manager at the
dealership.

2.after consulting dealership,if we feel additional clarification or help is

needed,contact our Mahindra Customer Care Centre:

Mail:Mahindra and Mahindra Ltd

Customer care department

Mahindra towers 3rd floor,

Akurli road, Kandivli-east

Mumbai-400 101

Email:customercare@mahindra.com

Toll free 1800-209-6006

96
MAHINDRA WITH YOU HAMESHA

97
 LAYOUT

Layout refers to physical arrangement of facilities. It is the configurations of

departments, work centers, etc. The primary goal of layout is to maximize the
profit by arrangement of all facilities to the best advantage.

The company has divisions such as

-Front office

-Customer Lounge

-Finance help desk

-Conference desk

-Spares office

-Accounts department office

-bank office

The branch managers cabin and the conference Room are near to each other
so that conference can be held immediately when required. The two Trading
Rooms are placed together so that any problem during the trading sessions
can be handled easily. The back office, risk management desk are placed in a
line so that they can communicate whenever required and the queries of the
cost.

VARIOUS ACTIVITIES OF OPERATION DEPARTMENT

ACTIVITIES

Banking Department
Customer Help
Dealing Department
Service Department
Spares Department

98
CUSTOMERS HELP

When a customer enters to the showroom the frontier comes to attain the
customer and explain about the services, features etc about the Mini Truck.
They allow test-drives to the customers for there covalence to buy the Mini
Truck. They also provide installments facilities to the customers who wants to
purchase the Mini Truck. They give all the information about the Mini truck
and services so that the customer should get clear about all the things. They
explain each and everything about the services so that it would become easy
for the customers to take the decisions. It is very necessary to satisfy the
customers and there needs. Best service should be provided to the
customers. They provide brochures to the customers for more information
they want so it would be clear for the customers to select the color of the mini
truck and also to know more about the mini truck and its services. As for
example truck(Bolero) there are several models in this truck and each and
every information is given in the brochures so that it become easy for the
customers to select the truck. As this type of brochures are available for each
and every truck so that it would became easy for customers to know all the
information about the mini truck asevery single detail is there in the
brochures. With the help of that brochures they easily select the mini truck
as per there budget and requirements.

CONFIRMING THE CUSTOMERS WANTED MODELS

As after giving all the information to the customer and also test drive thenthe
customer finally decided to go for truck. He is ready to buy as by knowing
all the information about the truck then they will discuss all the things and
also how they will do all payments. They have to follow the procedure as per
the rules and regulations.

NEW PRODUCT BUYING PROCEDURE

Customer is ready to buy a new truck. As company is giving many benefit to
the customer so that the customers would get proper satisfaction. Company
provides many benefits in different ways like they give more time for payment,

99
they extend the period of insurance, they give free services for some period of
time, accessories etc. This way the customer is ready to buy the truck. It is
necessary to accept all the rules and regulations of the company and then the
procedure is followed, company should give all the proper services to the
customers.

INFORMATION PROVIDES BY THE EMPLOYEES TO THE

CUSTOMER

An employee provides all the information to the customer so that customer

should get a clear picture and also rules and regulations about the
services.-Application information (information provided from loan
applications and other form such as names, addresses, telephones numbers,
level of family income etc)

Credit reports (information from consumers reporting agencies

-Correspondence (information provided when communicating in writing,

online or by phones with customers service representatives)

Marketing partners and publicity available data base.

Thus, all the information is provided to the customers from the employee

AFTER SALES SERVICES

There are mainly three services provided to the customer after buying the truck
that is 2 months service, 6 months service and 12 months service. Till 2 months
they should cover 1200 to 1400 kilometers and then they can give the truck for
servicing and if the truck is covering the kilometers up to 1200 to1400 before 2
month then they can also take the service before 2 months and by chance
they have not covers till this much kilometers then they can go for after 6
month service. Till 6 months they should cover 9000 to 10000 kilometers

100
and then after that they can go for the service of the truck. Then the last
service is 12 month service which is not based on kilometers it has to be done
as no matters how much kilometers the car has covered, this is the last free
service which has to be done compulsory as after that free service time limit
is finished. So it is necessary to service the truck on time so that there should
not much problems occurred and even we should take the advantage of the
free services provided to us by the President Automobile.

INSURANCE

Insurance is defined as the equitable transfer of the risk of a loss, from entity
to another, in exchange for a premium. Similar to an insurance consultant,
an insurance broker also shops around the best insurance policies amongst
many companies. As it is an arrangement by which a company or the state
undertakes to provide a guarantee of compensation for specified loss, damage
etc in return for payment of a specified premium. It is a thing providing
protection against a possible eventually.

The insurance period is valid for 1 year in the Mahindra company, till that the
customers can take all the free services from the company. After one year the
insurances is completed after that customer can renew the insurance policies
as per the requirements again for a year. And if the customer is not satisfied
with the insurances policies of Mahindra company then he can transfer the
insurance policy to other companies like ICICI Lombard, Bajaj alliance,
National insurance company, HDFC. All these companies also provide
these services and are valid for an year after that customer can again renew
for an year.

101
CHAPTER 5:CONCLUSION

102
From above analysis we have analyzed that President Automobile and
Mahindra and Mahindra is serving to the people from long period of time
With good and positive response from customer. this showroom was
established before twenty years ago and from then it has proved it self that
they deserves to be the leading brand in the market.

President Automobile is serving to the people with vision,mission & aim

and core values. Because of this types of attitude president automobile has
gain the benefits of peoples trust and the dignity of the market and dignity
of individuals.

From the study it can be clearly mentioned that their core value are
influced by their past, tempered by their present and will shape their
future. They are amalgam of what they have been,what they are and what
they want to be.

This study mentions that it has professionalism. It has always sought

the best people for the job and given them the freedom and the opportunity
to graw.

They believes in customer first because they responed to the changing

needs and expecting of their customers speedily , courteously and
effectively.

Quality is the key to delivering value for money to their customer.

The main competition in the market for President Automobiles are Nvjivan
hundai,maruti sujuki and Ford as well as Valkswagen. Then to they have
their own impression as they provide the best facility and qualitative
product and services.

103
BIBLIOGRAPHY

104
 BIBLIOGRAPHY

Reference Book

Philip kotler (2005), Principles of marketing: Contribution from Europe,

Prentice-Hall.

P. Subbarao, Human Resource Management: Himalaya publishing

house.

Website:

www.wikipedia.com

www. Businessdictionary.com

www.mahindra.com

105
APPENDIX

106
Profit & Loss - Mahindra & Mahindra Ltd. Rs (in Crores)

Mar'16 Mar'15 Mar'14 Mar'13 Mar'12

12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 43606.64 41133.11 43120.18 43412.65 31853.52

Excise Duty 2721.66 2187.69 2611.68 2971.49 .00

NET SALES 40884.98 38945.42 40508.50 40441.16 31853.52

Other Income 0 0 0 0 0

TOTAL INCOME 41739.83 39794.36 41226.49 40990.33 32319.31

EXPENDITURE:

Manufacturing Expenses 230.64 222.41 221.35 206.39 175.78

Material Consumed 29719.67 28135.27 29614.77 30587.96 23661.61

Personal Expenses 2342.15 2316.93 2163.72 1866.45 1701.78

Selling Expenses .00 .00 .00 .00 .00

Administrative Expenses 4022.31 4097.38 3787.45 3071.06 2543.63

Expenses Capitalised .00 .00 .00 .00 .00

107
Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 36314.77 34771.99 35787.29 35731.86 28082.80

Operating Profit 4570.21 4173.43 4721.21 4709.30 3770.72

EBITDA 5425.06 5022.37 5439.20 5258.47 4236.51

Depreciation 1108.61 974.90 863.34 710.81 576.14

Other Write-offs .00 .00 .00 .00 .00

EBIT 4316.45 4047.47 4575.86 4547.66 3660.37

Interest 155.29 214.30 259.22 191.19 162.75

EBT 4161.16 3833.17 4316.64 4356.47 3497.62

Taxes 1062.42 847.78 611.08 1094.27 727.00

Profit and Loss for the Year 3098.74 2985.39 3705.56 3262.20 2770.62

Non Recurring Items 68.74 335.72 52.79 90.62 108.27

Other Non Cash Adjustments .00 .00 .00 .00 .00

Other Adjustments .00 .00 .00 .00 .00

REPORTED PAT 3167.48 3321.11 3758.35 3352.82 2878.89

KEY ITEMS

108
Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 648.94 643.73 758.21 705.19 666.35

Equity Dividend (%) 218.99 217.69 256.88 238.91 226.24

Shares in Issue (Lakhs) 6210.92 6210.92 6158.92 6139.81 6139.75

EPS - Annualised (Rs) 51.00 53.47 61.02 54.61 46.89

Rs (in Crores)

109