final PART A

1.0) INDUSTRY PROFILE

1.1) History of automobiles:

A multi part feature of the history of automobiles, started with the steam, electrical,

and gasoline-engine cars. The automobile as we know was not invented in a single day by a

single inventor. The history of automobile reflects an evolution that took place worldwide.

It’s estimated that over 100000 patents created the modern automobile. However, we can

point many firsts that occurred along the way. It starts with the first theoretical plans for a

motor vehicle that had been drawn up by both Leonardo Da Vinci and Isaac Newton.

In 1769, the very first self propelled road vehicle was a military tractor invented by

French engineer and mechanic, Nicolas Joseph Cugnot(1725-1804). Cugnut used a steam

engine to power his vehicle, built under his instructions at the Paris Arsenal by mechanic

Brezin. It was used by French army at a whopping speed of 2.5 mph on only three wheels.

The vehicle had to stop every ten to fifteen minutes to build up steam power. The steam

engine and boiler were separate from the rest of the vehicle and placed in the front.

1.2) History of automobiles in Indian market:

The first motor car on the streets of India was seen in 1898. Mumbai had its first taxi

cabs in the early 1900. Between 1910 and 1920’s, the automobile industry made a humble

beginning by setting up assembly plants in Mumbai, Kolkata, and Chennai. In 1946, Premier

Automobile Limited (PAL) manufactured the first car in the country by assembling “Dodgo

Desoto” and “Plymouth” cars. In 1952 the government of India set up a traffic commission to

devise regulations to develop the indigenous automobile industry.

Maruti Udyog Limited (MUL) was the country’s youngest manufacturer, which was

formed in 1983, as a result of a joint venture between Maruti Udyog Ltd and Suzuki Motors

Corporation of Japan. During its short span of ten years, until the car industry was delicensed,

Maruti Udyog Ltd has become India’s largest car manufacturer with the sales of over two

lakhs vehicles per annum and around 81% of the market share.

P.A. COLLEGE OF ENGINEERING 1

2.0) COMPANY PROFILE:

Maruti is one of the most successful joint venture in India. Today MUL has been

established as a market leader with highest market share in Indian car market. It is been

introducing new model’s to compete with new cars, introduced by MNC’s entering India, in

the light of liberalization policy of the government.

2. 1) BACKGROUND AND INCEPTION OF THE COMPANY

MUL was formed in 1981, but its true origin can be traced back to mid 1970, when

late Sri Sanjay Gandhi with his vision and ambition of building a “people’s car” and started

this company. The company did produce only 31 cars but it did not cross the testing stage.

Company started declining and then for survival, it has to depend on assembling road rollers,

building bus, truck bodies etc. Then a special team which consisted of all successful and

leading personalities of Indian automobile industries was incorporated on 22nd April 1981, to

make an attempt to achieve Mr. Gandhi’s vision of “People’s Car”. Mr. Sumanth

Moolgaanker( from Telco) was made the Chairman; Mr.Krishna Murthy was made the vice

chairman and the M.D , Mr. R.C Bhargava was the special officer on duty. They met almost

every manufacturer of importance and they included Opel, Renault, Volkswagen, Peugeot,

etc. Suzuki Motor Company (SMC) started the match over the rest by giving the best

proposal. The Indian Govt and SMC signed a collaboration agreement in October 1982.

Suzuki held the strake of 26% equity and rest by the Indian Govt. The main objective of this

was to produce high quality, fuel efficient vehicles in India to achieve high volumes of

production at low cost, so that the company never made loss.

First car, Maruti 800 was rolled out on 14th of December, 1983. It was a derivative of

Suzuki’s SS-80. It was a modern, efficient and reliable car due to its technological

superiority. It was priced Rs.50000/- which was a very comparative price in the market.

Through sudden dramatic changes in the Indian Car market, Maruti 800 was followed by

introduction of Maruti 308 van(later named as Omni) in November 1984. This was the first

example of multi- purpose vehicle, further enhanced Maruti’s reputations as quality car

markets, where Maruti 800 was individualist, Maruti 308 was more practical. Later it was

followed by Gypsy in 1985, Maruti 1000 in 1990, and Maruti Zen in 1993. Zen was a

specially designed vehicle to boost the MUL’s product range.


2. 2)NATURE OF BUSINESS CARRIED

Mandovi Motors was a firm set up in the year 1963 as partnership firm, which was the

dealer for Volkes Wagon cars and spare parts and in 1965 appointed as the dealer for Suvega

Motors. After that, Maruti Udyog Ltd. has appointed Mandovi motors as dealer for Maruti

vehicles in the year 1983. Mr. Ashok Rao is the M.D of the company. It is managed by one of

the prominent business families in the district with a good track record of promoting

successful enterprises like Supreme Motors, Arvind Motors.

Under the dynamic leadership of Late Aroor Sripathi Rao, Mandovi grew very fast

year after year and also started Maruti Suzuki’s authorized dealership at Mysore in 1985 and

later in 1989 dealership in Mangalore.

2.3) VISION, MISSION & QUALITY POLICY

2.3.1) Vision:

“Vision without action is a daydream; Action without vision is a nightmare”

Selling and supervising Maruti products is the Moto, constantly improving customer

satisfaction is the Toto to keep themselves as a leader in Karnataka Automobile industries.

Mandovi motor’s vision is to become the top automobile dealer in India by 2015 and

it is very clear from this that, they are always open to the challenges and reach higher levels.

2.3.2) MISSION:

‘Steering ahead together’ is the mission of Mandovi motors. The objective is to

maintain the leadership in Karnataka over all operators by delivering world class services to

the valued customers.

2.3.3)QUALITY POLICY:

“At Mandovi, it pledge to make quality a way of life, through commitment to

continual improvement in customer satisfaction and adhering to quality management

systems.” The foundation of Mandovi is based on hard work, sincerity, integrity and


commitment of its team. It nurtures a culture of excellence & innovation. They are

continuously striving to create a “One Stop Shop” for our Customers.

The aim is to become “The Preferred Destination” for purchase and service of Maruti

Cars, as well as for allied services like Vehicle Insurance, Pre-Owned Cars, in the cities it

operate. Mandovi motors follow this quality policy very promptly. It believes in providing

utmost customer satisfaction and maintaining it by giving value-added services.

2. 4) PRODUCTS PROFILE

Available Models Ex-Showroom

Price

Maruti Suzuki 800 Rs 2,12,192

Maruti Suzuki Alto Rs. 2,80,484

Maruti Suzuki Grand

Vitara

Rs. 18,57,752

Maruti Suzuki Gypsy Rs. 5,41,464


http://www.carwale.com/New/BrowseCarsByVersion-model-31.html




Maruti Suzuki Omni Rs. 2, 30,080

Maruti Suzuki Swift Rs. 5,25,761

Maruti Suzuki Swift Dzire Rs. 6,83,680

Maruti Suzuki SX4 Rs 7,95,678

Maruti Suzuki Wagon R Rs. 3,95,463

Maruti Suzuki Zen Estilo Rs. 3,26,851

Maruti Suzuki Eeco Rs. 3,05,567

Maruti A-Star Rs. 4,15,306








http://suzukifan.com/wp-content/uploads/2010/01/maruti-suzuki-eeco-11.jpg

Maruti Ritz Rs 4,90,508

2.4.1) Salient features of Maruti Products:

1. Engine High speed engines with higher compression ratios. Aluminum cylinder block of Esteem and Zen engines leading to one kg

reduction in engine weight. Twin barrel downward carburetor with return lines to fuel tank to avoid

vapour lock. Positive crank case ventilation system. Resonators for smoothness of air intake. Single overhead camshaft- no push rods and tappets. Pressurized cooling system with coolant.

2. Transmission: Diaphragm clutch, easy operation, no adjustment required. All forward synchromesh gearbox.

3. Steering: Smaller turning radius convenience with rack and pinion.

4. Brakes: Tandem masters cylinder with ‘X’ types for better safety. Vacuum assisted Hydraulic brakes for lesser pedal effect. Disk brake in the front for better brake efficiency.

5. Suspension: Mc Pearson struts in the front for better ride. High ground clearance.

6. Body: Aerodynamically designed with minimum drag coefficient(0.36) High power to weight ratio. Bucket seat with adjustable rest. Safety head rest. Easily readable meters with controls at convenient location.


http://en.wikipedia.org/wiki/File:2007_Suzuki_Splash_01.jpg

Paints of high gloss with premier applied electro phonetic technique for high corrosion resistance.

2. 5) AREA OF OPERATION:

Mandovi has a vast network throughout Karnataka. Currently they are concentrating

only in Karnataka. So it can be called as regional operation.

2. 6) OWNERSHIP PATTERN

Mandovi Motors Pvt. Ltd is one of the top Maruti dealers all over India. It was the

first prestigious authorized dealer in Karnataka state and it commenced its operations at

Bangalore on June 14th by Late Aroor Sripathi Rao. Mandovi Motors was established in

Mangalore on 22nd February, 1989. Mr.Ashok Rao is the managing director of the

organization.

2. 7) COMPETITORS INFORMATION

In Mangalore, competitors of Mandovi motors pvt ltd are, Kanchan Hyundai (Dealers

of Hyundai Cars), Tafe AccessMotors (Dealers of Skoda india Cars), Auto matrix (Dealer of

Tata motors), Cauvery ford (Dealers for Ford Cars), Frontline Automobiles (Dealers for

Chevrolet cars), Peninsular Honda (Dealers for Honda Cars), United Toyota (Toyota cars

dealers) and Bharath motors (Dealers for Maruti Cars).

2. 8) INFRASTRUCTURE FACILITIES:

Today, Mandovi Motors Pvt Ltd has got 4 fully air conditioned showrooms, & 14

sales information counters, 15 workshops, 4 true value and 4 stock yards all over Karnataka.


They have also come up with the MMS (Maruti Mobile Service) in order to reach customers

at their door step. With this they can proudly say that, “where ever you go… In Bangalore…

Mysore… Mangalore… Mondovi’s Sales, Service network follows you.

2.8.1) ASSET BASE:

The Mangalore office consists of two multi – storey buildings, one housing the marketing and

sales division with a well a displayed showroom. The workshop, accessories, spare parts and

accident section are also located at the other multi – storey building. The utilities available at

the workshop are

15 working bays

40 parking pays

One alignment bay

6 express bays

2 quick repair bays

One multi-stage working section

One break down service.

2.8.2) Welfare schemes to workers:

Attractive salary package. It includes huge incentive structure depending on the cars

sold, and the cars serviced.

Statutory benefits such as provident fund, ESI and gratuity

Company medical policy

Accident benefits

Company paid Sim card

Petrol reimbursement facility


Cars to all managerial level employees with free fuel

Free Uniforms

2. 9) ACHIEVEMENTS and AWARDS:

2.9.1) ACHIEVEMENTS

1. 1st to introduce Maruti cars to Karnataka State.

2. 1st dealer to get “ISO certification “in automobile dealership (South Karnataka).

3. 1st to introduce Maruti “True Value” (Quality used cars) in Karnataka.

4. 1st automobile dealer to cross 50000 vehicle sales in South india-1997.

5. 1st to install “Electronic Collision Repair Equipment” for the body repair shop in

Bangalore 2005.

6. 1st to install “Hunter Safe Lane” (complete break, suspension, and wheel alignment

diagnostic test) in South Asia-2006.

7. 1st one to cross “100000” vehicles sales of Maruti cars in Karnataka.

8. 1st Maruti dealer to cross “Service inflow of 10000 no’s per month” in Karnataka.

9. 1st Maruti dealer in India to get top position in JD power customer satisfaction study

(non metro) three times in a row.

2.9.2) AWARDS:

1. 2002-03 Best workshops up gradation.

2. 2001-04 Excellence in service.

3. 2001-02 All India skill competition Regional winners.

4. 2000-01 Best service workshops.

5. 2004, 2005, 2006- No.1 in all India customer satisfaction survey.

6. 2003- ISO 9001/2000 certified by AIB- VINICOTTE international, Belgium.


2. 10) WORK FLOW MODEL:

2.10.1) Prospect tracking

The customer may directly walk in to the showroom when he feels the need to buy an

vehicle or a customer may be invited to buy newly arrived vehicle by the marketing

executives. The customer arrived will be greeted, and brief description of the vehicles will be

explained to him. The customer may then take test drive of the vehicle of his preference.


Prospect Tracking

Order Booking

Pre-delivery inspection

Finance Process

Washing Department

Registration Department

DeliveryDelivery Controller

Service

Insurance section

Maruti Company

Purchase Department

Finance Department

Satisfied customer with the performance of the vehicle may ask about the price, model,

delivery of the vehicle, colors available etc. the customer arrived to the showroom their

phone number and address will be the asked by the sales executive and will be maintained in

a book.

2. 10. 2) Order Booking

Nowadays there are various sales promotional schemes prevailing at the same time for

different models, and depending on the market conditions, the schemes frequently change. In

order to ensure that the customer does not feel that he has not got what he was initially

offered, the details of the scheme that has been offered to the customer will be put in writing

and the signature of the customer will be taken on the same. The team leader or call centre

executive will later on call up the customer and confirm the scheme with him. The sheet on

which this should be recorded is called a commitment Sheet/Checklist.

Apart from the financial commitments, one can also put the committed delivery

date/time on this sheet. In case the customer has asked for some accessories, the same will

also be written in the commitment list. A signed copy of this commitment list should be

handed over to the customer and a copy should be kept in the customer’s file. The time of

delivery given to the customer should take into account the accessory fitment time also. The

customer should also be told that in case he does not want accessories at this stage and asks

for the same at the time of delivery, it would take some time and the customer would have to

wait for the accessory fitment.

2. 10.3 )Finance Process/Paperwork

Car finance plays a major role in facilitating the car purchase. About 3/4th of the cars

are sold with some financing arrangement. Therefore it becomes necessary that customers

are offered a simple, fast, transparent and hassles free experience during the entire process of

financing the car. In order to sanction a car loan: the financier requires the following

documents

1.Income proof Salary slip, Form 16, Last 3 years Income Tax return

(any one)

2.Bank statement 6 months bank statement, credit card statement (any

one)


3.Signature verification Photo ID card, PAN card, Driving license, Voter ID

card (any one)

4.Identity (ID) proof Passport, PAN card , Driving license (any one)

5.Address Proof Passport, Voter ID card, Telephone bill, Electricity bill

(any one)

The first two are meant to indicate the credit worthiness of the customer. The normal

requirement of income proof is the Income Tax return statement for 3 years to show a stable

income of the customer and 6 months bank statement to check of the customer has a clean

record of transactions with the bank he has his account with signatures verification is required

so that the signatures can be matched with those in the bank account. This is mainly required

for the purpose of post-dated cheque (PDC’s).

2.10.5 ) Insurance section

Insurance of the vehicle will be explained in detailed to the customer,

comprehensive Insurance and third party insurance is available. Comprehensive policy is a

must for vehicle under hire purchase/finance. Package police covers everything i.e. earth

quake, flood, theft riot etc.

2.10.6) Registration Department

Once the detail of the customer is verified and the vehicle order arrives to the

showroom the vehicle will be taken to the RTO. For registration of the vehicle, the engine

number will be checked and verified by the RTO inspector. Registration certificate will be

done in the RTO of the vehicle.

2.10.7) Pre Delivery Inspection

This is a series of checking which includes all parts, before delivery to ensure that

vehicle is in perfect condition when handed over to customer. The quality, performance of

the vehicle will be checked.

2.10.8) Washing department

After detail checking of the vehicle is done, it will be sent to washing department.

The vehicle is washed, polished, cleaned and made ready before the delivery.

2.10.9) Delivery Controller


Deliver controller is basically a single point interface for delivery planning and

delivery coordination. All the commitments for the vehicle delivery should be made after

consulting the delivery controller. Once a salesperson commits a particular delivery schedule

to a customer (after due consultation with the delivery controller), the delivery controller

needs to coordinate with various departments and ensure that the vehicle is ready for delivery

as per the committed time. In case of any unforeseen delays at any stage, the delivery

controller will inform about the same to the salesperson, so that the customer can be informed

well in time and new delivery schedule intimated to the customer.

2.10.10 ) Delivery

Delivery of the vehicle will be done very special; the delivery day plays an

important part in customer satisfaction, making the vehicle available on the day as promised

to the customer. In this stage the vehicle will be finally delivered.

2.10.11) Service

The after sales service will be provided to the customer, customer is offered

warranty for 2 years/40000 kms whichever is earlier from the date of delivery. All periodical

services have to be done within specified time as mentioned in the owner’s manual at the

dealership workshops.

2. 11) Future Growth and Prospects

For mutual advantage of customers and the company, it has started a segment

(section) for the purchase and sale of second hand cars, which is known as “True Value

Division”.

For the current financial year, Mandovi motors have plans to establish a sales/service

outlet at Gonikoppa in South Coorg and also add few more outlets in Karnataka, thereby

increasing sales and service network to cater to the needs of flourishing customer base.


3.0) MCKENSY’S 7s FRAME WORK:

The McKinsey 7s model is widely discussed framework for viewing the

interrelationship of strategy formulation and implementation. It helps to focus the manager’s

attention on the importance of linking the chosen strategy to a variety of activities that can

affect the implementation of that strategy.

Originally developed as a way of thinking more broadly about the problems of

organizing effectively, the 7 S frameworks provides a tool for judging the “does ability” of

strategies. Mc Kinsey and Co’s model provides a useful framework for analyzing the

strategic attributes of an organization. Strategy, structure, and system can be considered the

“hardware” of success, while style, staff, skills, and shared values can be seen as the

“software”. Companies, in which these soft elements are present, are usually more successful

at the implementation strategy.

The 7 S:

The strategy, structure, and system are known as hard ‘S’s and style, staff, skills, and

shared values are known as soft ‘S’s. The hard Ss are easy to identify where soft Ss are not so

easy to identify.

3.1) Structure


Organizational structures different in different firms depending on their organizational

objectives and nature of the business carried. An organizational structure may involve many

departments like finance, production, H.R, marketing etc. This kind of departmentation

improves the flexibility and leads to smooth running of the organization. These all

departments are answerable to the higher authority.


Managing Director

Assistant General Manager

Management Representative

Marketing Manager

Finance Manager

Purchase Manager

Work Shop In Charge

Team Manager

Marketing Executive

AccountantMechanicsExecutive

Supervisor

Clerk

Chief customer

care manager

Finance Department

Purchase Department

Maintenance Department

True Value Manager

Marketing Department

Customer care

H.R. Manager

Trainee

Management is universal in this world. Every organization requires making of

decisions, coordinating of activities, handling of people and evaluation of performance

directed towards objectives. Management has gained importance as the scale of operations if

modern organization has increased and there is a trend toward specialization of activities.

In Mandovi Motors there is a personnel department which is set up to carry out the

management function. This department performs the functions of planning, organizing,

staffing, directing and controlling for the accomplishment of organizational goals.

3.2) Staff:

Providing great customer service requires great people. To be the best in business,

Mandovi Motors hires the best people and spend a lot of time in selecting them. Right now

the total strength is,

1. Workshop- 108

2. Sales - 71

3. Insurance - 16

4. Spares - 11

5. Body shop - 21

227

Process of recruitment in Mandovi motors:

The General Manager/ Deputy General Manager (works) shall tailor the manpower

requirement keeping in mind the organizational objective and also focus on new

developments which might take place.

The profile of an ideal candidate shall be prepared by general manager. This helps in

getting the required candidates.

Recruitment can be internal or external. In case of internal recruitment, an

interviewing team shall interview the prospective candidates. If the result of interview

is satisfactory, then the candidate shall be promoted.


In case of external recruitment, it’s done by advertising directly or by personnel

search or by campus recruitment.

A screening of application shall take place on the basis of recruitment and short listed

candidates will be given tests.

The results of test will be assessed and if it is satisfactory, then offer is shall be made.

Training;

The General Manager shall evaluate the organization and the employee’s

assessment of needs.

The General Manager shall develop training programmers along with skilled and

trained personnel to meet the specific objectives of training requirements.

Functional training shall be carried out by already trained faculty.

The new recruits shall undergo induction training on policies and procedures, job

information etc, and shall be trained on the job by working with machines for 3

months.

The training programmed shall be evaluated through reactions or feedback from

the trainer and the trainee.

3.3) Style;

Mandovi Motors follows top down style of management. Here much importance is

given to the customer service. Regular meetings are held with supervisors to review the

progress achieved. Performance charts are prepared to serve as a motivational tool for better

performance and also to serve for review purpose. Weekly workshops meetings are held with

supervisors. Any grievance or suggestions from staff are taken and good suggestions are

given a cash prize.

The management style on the whole is flexible. Limits are set and freedom is given

within the limits. Though there are checks and counterchecks to ensure proper use of

authority. Importance is given to each and every person from lowest to worker to the highest

manager. Consequently, team work spirit is high in the organization.


3.4) Strategy;

Function of an organization in Mandovi Automobiles;

An organization tries to establish an effective behavioral relationship among selected

employees and in selected work places in order that a group may work together effectively.

There are 3 kinds of work which must be performed whenever an organization comes

into existence, i.e. division of labour combination of labour and co-ordination of work, the

people and the relationship between them. These are known as the fundamentals in every

successful organization. It sponsors certain events thereby making its company or brand

popular.

3.5) Shared Values;

One of the objective or aspect that Mandovi Motors focuses on marketing area which

brings in the most number of customers. Satisfaction of customers is the main objective

which highlights the importance of a customer. It provides the customer or any client with

quality service as well as products. Customer is given utmost good faith.

To maintain the quality level of performance is also one of the values. It also aims at

increasing its market share and sales.

3.6) Skills;

Skills can be classified into two;

Soft skills: such as communication, inter personals skills.

Qualification required:

MBA for high level jobs and any graduation for low level jobs.

Hard skills: such as IT skills, technical skills.

Qualification required:

Motor mechanic (ITI), Diploma in automobile, B.E (mechanical).

Mandovi motors as a whole is very much skilled with the availability of huge manpower

resources. Skills are considered as one of the most crucial attributes or capabilities of an


organization. The term skills include those characteristics which most people use to describe

the company.

Mandovi motors pay more attention to the aspect of communication which is necessary

for attracting customers. It focuses on the development of interpersonal relations and also

communication skills of the sales personnel to promote and attract customers.

3.7) Systems;

System refers to all the rules, regulation and procedures both formally and informally

that complement the organization structure. It includes production planning, inventory control

system and capital budgeting system and performance appraisal system.

3.7.1) Performance Appraisal at Mandovi motors:

The performance appraisal system followed in the Personnel Department is as follows.

They are:

When an employee is selected, trained and motivated he is then required to be appraised

for his performance. Performance appraisal is the step where the management finds how

effective it has been at hiring and placing employees. If any problem is identified then certain

steps are taken to communicate with the employees and to seek remedy to the issue.

A performance appraisal is a process of evaluating an employee’s performance of job in

terms of its requirements.

In mandovi there are two methods of appraisal

o Executive Performance Appraisal

o Workers Performance Appraisal

Performance Appraisal has been considered as a most significant and indispensable

tool for an organization for the information it provides. It is highly useful in making decision

regarding various personal aspects such as promotion. It provides a base for judging the

effectiveness of personnel functions such as recruitment, selection, training and

compensation.


3.7.1.1) Executive Performance Appraisal:

The manager scrutinizes the performance by assigning the appropriate rating for executive

performance appraisal as per the following:

Performance or realization exceeds the expectations/ requirements.

Performance or realization meets the expectations/ requirements.

Performance or realization practically meets the expectations/ requirements.

Performance or realization fails to meet the expectations/ requirements.

3.7.1.2) Workers Performance Appraisal:

The performance parameters of workers performance appraisal are described below:

General Information : Here the general information of the employee will be

provided to give an insight to the appraiser about appraise.

Performance Factors : Certain factors are rated according to the performance

exhibited by the employee. They are

i. Job knowledge

ii. Attitude

iii. Behavior

iv. Inter personal skills

v. Dependability

vi. Communication

vii. Initiative

viii. Discipline

ix. Safety

x. Punctuality

xi. Attendance


Job rating scale criteria : The appraiser has to rate the appraise in a rating scale of 4

on the above mentioned parameters.

Good : 4

Average : 3

Fair : 2

Poor : 1

3.7.2) Performance analysis:

The appraiser is supposed to provides descriptive comments on the job performance and

the performance and the behavioral aspects of the appraise.

Areas of Development:

The appraiser is expected to put specific training input for the appraise,

which in the opinion of the appraiser will help the latter to perform his job in effective way.

Overall Assessment :

Final step is to provide an overall assessment. Based on the total score of all

parameters the assessment should be interpreted as per the guidance below:

Good: 28 to 36

Average: 18 to 27

Fair: 12 to17

Poor: Less than 12


After the overall assessment of workers has been completed, the next step comprises of

taking decisions regarding the promotion of employees in accordance with the promotion

policies, which are time-bound as well as performance based.

This aspect also deals with technology. IT has gained prominence to a greater extent

in this century. Nothing is permanent but change. So there is a up gradation of technology

from time to time.

Mandovi motors uses IT systems in managing the information and storing and

retrieving of the data. The accounts department uses this system most. It stores and feeds in

the information on the financial matters and also the profit and loss account and also the

balance sheet.

The sales and marketing department uses this system to store the customer’s details

and also the various strategies.

4. SWOT ANALYSIS.

4.1 ) STRENGTH;

1. Biggest dealer network in Karnataka and Dakshina Kannada.

2. Selling more than 1000 cars per month and servicing 13000 vehicles per month and

servicing 13000 vehicles per month through 13 workshops which are 7 in Bangalore,

4 in Mysore and 3 in Mangalore.

3. 1st automobile dealer in Dakshina Kannada to get the AV Belgium ISO-9001-2000

certification for quality standards and procedures.

4. 1st automobile dealer in south Asia to have “Hunter Safe Lane” (complete brake

suspension and wheel alignment diagnostic test.)

5. 1st automobile dealer in Karnataka to build eco friendly workshop with passive solar

cooling design.


4.2) WEAKNESS;

1. Slow expansion lead to introduction of second Maruthi dealership at Mangalore.

2. Majority of the workshop are built on lease property.

4.3) OPPORTUNITY;

There are good opportunities for Mandovi Motors in following sectors.

Opportunity in sales:

Major IT companies and SEZ (Special Economic Zone) is going to be started

in Mangalore, so there will be good growth in automobile sector.

Opportunity in service;

Every month, more than 5000 vehicles are getting serviced in and around Mangalore.

Mandovi Motors are able to capture only 50% of the potential market. So there is

good chance for the organization to capture more shares in the service sector.

Increased income level, and purchasing power of middle class people has broaden the

market and cars have become a necessity rather than being a luxury.

With car finance offering high return, innovative finance schemes are being

introduced to attract the buyer.

4.4) THREAT;

Organization is thinking that their co-dealer may sell vehicles with more discount and

more offers, losing margin for both the dealer. As there are other dealers emerging, there is

threat for Mandovi Motors. Eg; Bharath Motors.

The inevitable hike in petroleum prices will naturally dampen the spirits of a

prospective automobile purchaser. And in luxury segment, Mandovi faces intense

competition as Maruthi does not have more models of this range.


5.0) ANALYSIS OF FINANCIAL STATEMENT

5.1) PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 2009

SCHEDU

LE NO.

For the year ended 31

March 2009

Rs. Ps

For the year ended 31

March 2008

Rs.

INCOME

Sales

Job-work receipts

Less: Purchases

Freight & workshop exp

(increase)/decreased in stock

GROSS PROFIT

Other Income

Tot

al

EXPENDITURE

Employee cost

Managerial cost

Administrative expenses

Repairs and maintenance

Interest and bank charges

Rates and taxes

Selling and distribution expenses

Bad debts written off

1

2

3

4

5

6

7

8

9

10

11

296,99,90,269.71

16,42,63,510.34

313,42,53,780.05

296,90,46,288.33

5,83,11,882.53

(10,22,13,678.96)

292,51,44,491.90

20,91,09,288.15

13,92,19,789.39

34,83,29,077.54

7,90,29,572.00

5,74,800.00

4,82,63,658.77

1,59,28,039.14

5,85,15,437.72

1,89,07,139.72

8,95,71,454.27

77,37,204.68

31,85,27,306.30

242,30,31,182

11,50,38,098

253,80,69,28

235,35,65,534

2,85,75,122

(4,99,63,916)

233,21,76,740

20,58,92,540

40,46,34,950

61,05,27,490

6,16,53,968

5,74,800

4,03,91,649

2,36,34,876

5,19,66,237

30,93,09,646

9,25,48,530

97,03,952

58,97,83,658


PROFIT BEFORE DEPRICIATION

Depreciation written of

PROFIT AFTER

DEPRICIATION

Add: Excess Tax provision

written back

PROFIT BEFORE TAX

Less: income tax paid for earlier

years

Provision for income tax

Provision for fringe benefit tax

Deferred tax

PROFIT AFTER TAX

Add: surplus brought forward

from previous year

TOTAL

APPROPRIATIONS

Transfer to reserves

Proposed dividend

Surplus carried to balance sheet

TOTAL

Note to accounts 12

2,98,01,771.24

1,52,23,519.88

1,45,78,251.36

21,462.40

1,45,99,713.76

52,05,000.00

18,61,666.00

(2,35,043.00)

68,31,623.00

77,68,090.76

52,46,264.85

1,30,14,355.61

5,00,000.00

9,00,000.00

1,26,225.00

15,26,225.00

1,14,88,130.00

34,83,29,077.54

2,07,83,658

1,

23,40,450

84,03,382

77,870

8

4,81,256

2,59,551

23,00,000

6,27,013

23,67,679

52,94,692

14,77,799

67,72,491

5,00,000

9,00,000

1,26,225

15,26,225

52,46,266

67,72,491


5.2) BALANCE SHEET AS AT 31ST MARCH 2009

Particulars Schedul

e No.

As at 31 March 2009 As at 31 March 2008

SOURCES OF FUNDS

Share holders Funds

Share capital

Reserves and surplus

Loan funds:

Secured loans

Unsecured loans

Deferred tax liability

TOTAL

APPLICATION OF FUNDS

Fixed assets:

Gross block

Less: depreciation

Net Block

Investments:

Current assets, loans and

advances

A. Current assets

a) stock-in-trade

b) sundry debtors

A

B

C

D

E

F

G

H

90,00,000.00

2,89,11,417.61

18,36,43,196.15

6,07,51,027.88

52,89,500.00

28,75,95,141.64

19,52,74,516.31

5,70,45,149.42

13,82,29,366.89

2,96,06,164.00

24,67,64,502.07

18,25,52,915.76

900,00,000

2,21,69,552

15,39,18,862

6,67,75,250

55,24,543

25,73,88,207

16,17,16,209

4,41,73,824

11,75,42,385

2,69,42,824

14,50,39,779

22,83,67,363


c) cash and bank

balances

d) other current assets

B. loans and advances

SUB TOTAL (A)

Less: current liability and

provisions:

a) current liabilities

b) provisions

SUB TOTAL (B)

Net current assets SUB

TOTAL(A-B)

I

J

K

L

M

7,29,79,230.33

2,79,17,113.98

2,93,75,456.66

55,95,89,218.80

43,25,44,557.05

72,85,051.00

43,98,29,608.05

11,97,59,610.75

3,62,02,298

2,27,26,518

2,50,70,468

45,74,06,426

34,11,77,203

33,26,225

34,45,03,428

11,29,02,998

TOTAL 28,75,95,141.64 25,73,88,207


5.3) Important Ratios:

1. Current ratio;

This ratio indicates the liquidity position of the company. It is the ability

of the company to clear the bank finance and market credits by releasing the current asset.

YEAR 2008 2009

CURRENT RATIOS 1.25 1.21

The current ratio of Mandovi Motors at the end of March 31, 2009 is 1.21, which is

less than the previous year (1.25).

It implies that for every one rupee of current liability, current asset of 1.25 and 1.21

are available for the year 2008 and 2009 respectively, to meet it and it also shows company’s

liability position.

2. Acid test ratio/ quick ratio;

The acid test ratio is the ratio between quick current asset and current liability and is

calculated by dividing the quick asset by the current liabilities. The acid test ratio is often

referred as a quick ratio because of its measurement of a firm’s ability to convert its current

asset quickly into cash in order to meet its current liabilities.

Quick current assets include cash and bank balance, short term marketable securities,

debtors/receivables. Thus current assets excluded are inventory and prepaid expenses.

YEAR 2008 2009

ACID TEST/QUICK

RATIO

0.842 0.656


The acid test ratio of Mandovi Motors at the end of March 31st 2009 was 0.656 which

is lesser the previous year (0.842).

Acid test ratio shows best accepted test of liquidity position of a firm. Generally an

acid test ratio of 1:1 is considered satisfactory as a firm can easily meet all current claims.

3. Debt / Equity ratio:

The relationship between borrowed fund and owner’s capital is a popular measure of

long term financial solvency of a firm. This relationship is shown by the debt equity ratios.

This ratio reflects the relative claims of creditors and shareholder against the asset of the firm.

Alternatively these ratios indicate the relative proposition of debt and equity in financing the

asset of the firm.

YEAR 2008 2009

DEBT/EQUITY RATIO 7.08 6.44

The debt-equity ratio of the Mandovi Motors remains at the end of March 2009 was

6.44 which are higher than previous year.If the debt-Equity ratio is greater, there may be a

greater risk to the creditors.

6. LEARNING EXPERIENCE

From our childhood we have been listening to a proverb which goes on as

“EXPERIENCE IS THE BEST TEACHER”, then we were not able to understand the exact

meaning of it but now I do. I have been acquiring knowledge in our colleges as to how things

go on in organizations but it is only after coming to Mandovi Motors I have realized how

exactly it is to work in an organization, to work under someone, to be accountable for

everything you do etc or in other words the practical aspects of working in an organization.


The in-plant training has enhanced my knowledge about the company, the various

products offered and its competitors and the technique and strategies adopted by them to

tackle their competitors. It has helped me in developing my skills and knowledge. It has

helped me developing the knowledge about the company, the real working of the company, to

understand the culture of the company. It also helped me to learn the new methods,

technology, culture and leadership skills used by the company.

During the in-plant training, I was exposed to practical aspects such as recruiting,

interacting with the people and customers. It has led to increase my communication skills.

After the practical exposure at various departments the following observation were

made. The customers who visit the showroom were well respected and treated with utmost

dedication. This shows that the company considers customers as their ultimate key for

success. They believe and follow that customer satisfaction is their main objective.

During the in-plant training I was exposed to the working culture of the organization. It was

noticed that employees come from various backgrounds and the employees should have the

ability to mingle and cooperate with all the cultures prevailing in the organization. The in-

plant training has exposed me with the problems that would arise due to the difference in the

culture.

The in-plant training has helped me to increase my knowledge about automobiles and

various other facilities such as insurance, extended warranty etc. The in-plant training has

surely improved my communication skills, interpersonal skills and has developed active

listening abilities. It has also briefed me with ideas as to how to handle conflicts and create a

friendly atmosphere in the organization. It has boosted my confidence and has made me

think more creatively.

I thank the company for giving me the information needed for my in plant training

and helping me to develop my skills.



final PART A

Documents