ETERNAL MOTORS

A
PROJECT REPORT
ON
PRACTICAL TRAINING UNDERGONE
AT

ETERNAL MOTORS PVT. LTD.

Bhavnagar –Rajkot highway
Chitra-364001

Prepared By: Guided By :

Keyur khambhati MS. Dhawni Raut.

S.Y.B.B.A.
Roll No: 150
B.B.A DEPARTMENT
S.S.C.C.M
Sardar Nagar, Bhavnagar.
Ph No: (0278) 257010
Academic Year: 2007 – 2010 15
 ETERNAL MOTORS

I undersigned KEYUR P. KHAMBHATI the student of S.Y B.B.A there by declares

that the project work presented in this report is my own work and has carried it under the
guidance of Miss. Dhavni Raut of Swami Shajanand College Of Commerce and
Management, Bhavnagar.

DATE:-

PLACE:- SIGNATURE:-

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The Bhavnagar University has wisely designed the structure of B.B.A course
Bachelor of Business Administration is a business management course. The student of S.Y
B.B.A is required to have knowledge about the business life cycle through practical theory of
management. Hence as a part of our B.B.A course the students are deputed in industrial
organization of practical training for 21 Days. I have pointed each and every aspect of
general information finance, personal, and marketing department.

The main aim of arranging such visit is for giving practical knowledge and
experience in the various field of management of the student for the full development of the
student. Not only theoretical and classroom discussion is enough for the full development of
the student, but also given some practical information about all field of management. So,
project report training plays very important role in study of B.B.A.

This year I visited Eternal Motor Pvt. Ltd.

Hence I am submitted my report.

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Firstly of all I am thankful to GOD and my parents the most important part of my
life.
I have great pleasure to present this report before you. This subject in the S.Y
B.B.A is designed for practical knowledge for the students. I have learnt many important
points which one must remember while doing practical work or field work. I have also come
to know that in practical the things are different and not as given in the different books of
theory. One must have a practical training before entering in the actual field.

I would like to thanks to Dr Sureshbhai Savani, who is our trusty and I would
also like to thanks to our principal Dr Rachana Dhroov because of them I get best project.
Than I would like to thanks to Miss. Dhawni raut.
Because this is my project head and give much information about the project.

At last but not least I would like to thanks Mr. Dasharat Rathod. HR manager
of ETERNAL MOTORS PVT. LTD. Because without her permeation I could not make nice
project. She gives me full guidance regarding this firm. I am also thankful to all over staff of
firm.

Thanking you.
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ETERNAL MOTORS

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INDEX
GENERAL INFORMATION 09
CONTENT 10
INTRODUCTION 11
PROFILE 13
HISTORY AND DEVELOPEMENT 14
QUALITY SYSTEM 15
TECHNOLOGICAL ADVATAGE 17
SIZE OF UNIT AND FORM OF ORGANISATION 18
ORGANISATION STRUCTURE 19
TIME KEEPING SYSTEM 21
COTRIBUTION OF THE UNIT 22
FUTURE PLANS 23
OBJECTIVE OF THE UNIT 24

MARKETING MANAGEMENT
INTRODUCTION 27
ORGANISATION OF MARKETING DEPARTMENT 28
CHANNELS OF DISTRIBUTION 29
MARKET SEGEMANTION 30
SALES PROMOTION 32
MARKET RESEARCH 33
ADVERTISMENT 34
PRICEING POLICY 35
DEMAND ANALYSIS 36
OTHER SERVICES PRONIDED TO CUSTOMERS 37

HUMAN RESOURCES MANAGEMENT

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INTRODUCTION 40

ETERNAL CULTURE 41

RECRUITEMENT AND SELECATION 42

TRAINING 43

PROMOTION AND TRANFER POLICY 44

PERFORMANCE APPRISAL SYSTEM 46

JOB DESCRIPTION 47

WAGES AND SALARY 48

SERVICES TO EMPLOYEES 49

WELFARE ACTIVITY 50

FINANCE MANAGEMENT
INTRODUCTION 54
FINANCIAL PLANNING 55
ORGANISATION OF FINANCE 56

FIXED CAPITAL 57

CAPITAL BUDGETING 58

MANAGEMENT OF WORKING CAPITAL 59

FINANCE’S TO CUSTOMER 60

RATIO ANALYSIS 61

LEVERAGE 62

BIBLIOGRAPHY 65 15
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PROJECT CONTENT

1. General Information.

2. Marketing Management.

3. Human Resources Management.

4. Financial Management.

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CONTENT
≈ Introduction

≈ Profile

≈ History and development

≈ Quality System

≈ Technological Advantage

≈ Size of unit and form of organization

≈ Organization structure

≈ Time keeping system

≈ Contribution of the unit to industry

≈ Future plans

≈ object of the unit

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INTRODUCTION
ETERNAL MOTOR PVT. LTD. is the authorized dealer of Maruti Suzuki cars. It is a
authorized dealer for Bhavnagar, Amreli, and Suredranagar and also dealer of maruti
genuine accessories. Eternal Motors Pvt. Ltd. establish in year 13-12-1998 at Bhavnagar. In
Bhavnagar it establish at press quarter. It is a private limited company regulated by the
company law. These are 7 department in the Eternal motor that is Account, Insurance,
Finance, Accessory, service, Accident, Spair-part department, but the main business of
Eternal motors is selling of four wheeler and we all know that four wheeler provided by them
are No.1 in all over the country. The market share of maruti is more than all other
companies. The present site was selected at press quarter because to take some extra
benefits. The managing director of Eternal motors is Mr.

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ABOUT ETERNAL MOTORS PVT. LTD.

Eternal Motor Pvt. Ltd. is a professionally managed authorized maruti
Dealerships, belonging to multi faceted group having several business interests like
consultancy & finance.

Eternal’s showroom is situated 8 kms away from Bhavnagar city on the

Bhavnagar-Rajkot highway. Eternal have enough space to keep 7 different models for
demonstration in our show room. The showroom is well designed with a Director’s cabin,
conference room, and administration offices. They also have ample parking space on the
ground floor.

Eternal CEO Mr. is a chartered accountant having about 20 years experience in a

industry. Maruti Motor Limited has awarded us the “MOST INNOVATIVE AND CONSISTENT
SALES PROMOTION” award for the 1999. Eternal Pvt. Ltd. has achieved 110% sales in his
first year of operation.

Eternal’s services include sales of new cars & second hand cars, accessories,
financing of new/old cars, insurance and RTO, extended warranty, MGP spares & servicing.
He organize free checkup camps, demonstration and exciting contests regarding Maruti
vehicles like quiz contests, painting competition, lucky draws, surprise gifts.

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PROFILE OF ENTERNAL PVT.LTD.

→ Name : Eternal Motors

→ Address : Near press Quarter, Bhavnagar.

→ Managing Directors : Mr. Subodhkumar Jain, Mrs. Shalini Jain.

→ Sales Manager : Amrishbhai Pandit.

→ H.R Manager : Dasharat Rathod.

→ Registered office : 6/8 & 9, G.I.D.C Chitra, Bhavnagar.

→ Present Year : 2007-2008.

→ Establish Year : 13-12-1998

→ Bankers : ICICI, HDFC, SBI, SBS, Kotak.

→ Phone no : 0278-2448718, 2448730

.
→ Fax no : 0278-2448730.

→ Website : www.maruti.co.in.

→ E-mail Address : eternal.bvn.hr1@marutidealers.com.

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HISTORY AND DEVELOPMENT

In 1998 Mr. Subodh jain has started the company as authorized dealer

Of Maruti Suzuki cars. But now the company has two workshop and also a dealership of
Maruti Suzuki genuine accessories now the company has increase it’s customers, finance
customers, assets etc. By it’s efficient staff and management.

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QUALITY SYSTEMS (ISO 9001:2000)

At Maruti, his approach to quality is keeping with the Japanese practice-“build it into
the product”. Technicians themselves inspect the quality of work. Supervisors educate and
instruct technicians to continually improve productivity and quality. The movement of quality
indicators is reviewed in weekly meetings by the top management.

In 2001, Maruti Udyog Ltd became one of the first automobiles companies
anywhere in the world to get an ISO 9000:2000 certification.
AV Belgium, global auditors for International organization for Standardization (ISO), certified
Maruti after a four day along audit, covering varied parameters like customer focused
organization, leadership, involvement
of people, process approach to Management, continual improvement, etc.

In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality
assurance in production, installation, marketing and sales as well as after sales service.
Maruti were also one of the first companies in the world to pioneer ISO 9000 certification for
our dealers.

In October 1993, passed the conformity of production (COP) Audit, which is

based on a European Union Directive. This authenticated our quality systems and testing
facilities for export to Europe.
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Maruti’s emphasis on total quality has meant that today he is in a position to guide
vendors and dealers in establish and consolidating their individual quality systems. This
commitment to quality has ensured a consistently satisfying product and world class and
after sales services.

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TECHOLOGICAL ADVANTAGE

Maruti have introduced the superior 16 * 4 Hypertech engines across the entire
Maruti range. This new technology harnesses the power of a brainy 16-bit computer to a
fuel-efficient 4-valve engine to create optimum engine delivery. This mean every Maruti
Suzuki owner gets the ideal combination of power and performance from his cars.

Maruti’s other innovation has been the introduction of Electronic power steering
(EPS) in select models. This result in better and greater maneuverability. In other words, our
cars have become even more pleasurable to drive.

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SIZE OF UNIT AND FORM OF ORGANISATION

Size of The unit means what is investment of the company, turnover of their
standard. There are some basis of which the size of unit can be fixed. Accounting to
government policy there are certain standards regarding scale operation which are as
follows.

1. Small Scale : Investment up to 60 lacks.

2. Medium Scale: Investment between 60 and 100 Lacks.

3. Large Scale : Investment more than 100 lacks.

The size of Eternal Motors is very large. And one more thing the organization is
also very large scale. Eternal Motor Pvt. Ltd. is a service sectors. Eternal Motors Pvt. Ltd.
supplies the Maruti Suzuki cars to the public and authorized dealer of MGA (Maruti Genuine
Accessories) is large scale business organization.

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ORGANISATION STRUCTURE
Generally, the organization structure mainly depends upon the size of the firm of
the company. Generally there are three level management in the company.

1. Top Level Management.

2. Middle Level Management.

3. Lower Level Management.

1. Top Level Management includes Board of Directors and Chef Executives

Officers Etc.

2. Middle Level Management includes the General Manager and H.R manager
and sub-Managers.

3. Lower Level Management includes the supervisor and employees etc.

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The organization structures of Eternal Motor Pvt. Ltd. are as follows;

CEO

HR
Manager
Manager
General
Manager

Manager

Maruti
Finance Marketing Workshop Shop
Genuine
Manager Manager Manager Manager
Accessories

Spare parts Mechanics

Department
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TIME KEEPING SYSTEM

Time keeping system is very important part of any company. Time keeping system
introduces to check the existence and entry time of the workers and on the basis of that the
wages and salaries are calculated. Thus the time keeping system plays a must important
role in the industry.

ETERNAL MOTOR PVT. LTD. keeps the time keeping system for their workers for
purpose of time management. They make time management in which the workers do their
works and in which time the workers go from industry.

The official time of Eternal Motor Pvt. Ltd. is 10:00 am to 7:00pm. While in
workshop there are two shifts, day and night.

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CONTRIBUTION OF THE UNIT TO THE

INDUSTRY

The Eternal Motor Pvt. Ltd. has the 65% of the market share in selling the cars in
Bhavnagar District. The company provides the Maruti Suzuki cars to the customers. The
Eternal Motor Pvt. Ltd. benefited to the automobile industry and Maruti Suzuki Company.

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FUTURE PLANS

The company plans to open one more workshop behind their showroom or office
and easily provide services to the customer’s and also plans to increase their storage
capacity in the showroom for the demonstration of cars. Eternal Motor Pvt. Ltd. also plans to
increase the finance facility to the customer’s by bank or other financial institution for
increase their sales.

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OBJECT OF THE UNIT

The Object of Eternal Motors Pvt. Ltd. mention in memorandum of association is

selling of Maruti Suzuki cars and genuine accessories and provides cars services to the
customer’s.

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ETERNAL MOTORS

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CONTENT

→ Introduction

→ Organization of Marketing department

→ Channels of Distribution

→ Market Segmentation

→ Sales Promotion

→ Marketing Research

→ Advertisement

→ Pricing Policy

→ Demand Analysis

→ Other Services Provide to Customer’s

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INTRODUCTION
A Marketing network consists of the company and its supporting stakeholders like
Customers, employees, suppliers, distributors, retailers etc. with whom it has built mutually
profitable business relationship.

Marketing deals with identifying and meeting human and social needs one of the
shortage definitions is “meeting needs profitably”. Good marketing has become an
increasingly vital ingredient for business success. And marketing profoundly affects our day
to day lives.

According to Philip kotler “marketing management” is the process of involving the

analysis implementation and control of programmers designed to create exchange for the
purpose of achieving organization activities.

We see marketing management as a art and science of choosing targets markets and
getting, keeping, and growing customers through creating, delivering, and communicating
superior customer value. Marketing practices are continually being refined and reformed in
virtually all industries to increase the chance of success.
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ORGANISATION OF MARKETING
DEPARTMENT

Eternal Motors Pvt. Ltd. is the authorized dealer of Maruti Suzuki cars. In this
company selling of cars is the most important work. So efficient marketing is necessary for
this company.

This is the organization structure of Marketing Department:

→ General Manager

→ Sales/ Marketing Manager

→ Team Leader

→ Sales/ Marketing Executive

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CHANNELS OF DISTRIBUTION

Many producers lack the financial resource to carry out direct marketing. A
marketing Channel performs the work of moving goods producers to consumers. It
overcomes the time, place, and possession gaps that separate goods and services from
those who need or want them.

The producers and the final customer are the part of every channel. We will use the
number intermediary levels to designate the length of channel. There are different kinds of
channel of distribution like zero-level, One-level, two-level, three-level channels.

Maruti Suzuki L.T.D. provides the cars to the Eternal Motor Pvt. Ltd. and them
sales cars to sub-dealer sales to the customer’s.

Maruti Suzuki
↓
Dealer (Eternal Motor Pvt. Ltd)
↓
Branches (surendranagar, Amreli)
↓
Customers

Eternal Motor Pvt. Ltd. provide cars to branches of Amreli and surendranagar and
for customer’s of Bhavnagar they directly sale the car to the purchase.
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MARKET SEGEMANTION
Markets are not homogeneous. A company cannot connect with all customers in
large, broad, or diverse markets. A company needs to identify which market segments it can
serve effectively.

Market segmentation means sub-divide the target market in to sub-groups of

homogenous characteristics, with a view of developing marketing programs for satisfying
consumers and gaining of profits.

The modern market system is consumer oriented all marketing activities are evolved
around consumers. So market segmentation is very important function. There are different
kinds of segmentation. Like

1. Geographical segmentation.
2. Demographic segmentation.
3. Psychographic segmentation.

The Eternal Motor Pvt. Ltd. segment the market in following consumer.

 First time buyer

 second time/ additional buyer
 Replacement

The Eternal Motor Pvt. Ltd. also segments the cars of Maruti Suzuki Company in following:
 A1 Maruti-800, Omni, Alto.

 A2 Wagon-r, Versa, Zen Estilo.

 A3 Esteem, Swift desire, Gypsy.

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The total selling of this segment is as follows:

Segment 2004-05 2005-0620 2007-08

Segment-A1 32.5% 29.5% 25.5%

Segment-A2 49.5% 47% 50%
Segment-A3 16.5% 21.5% 24.5%

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SALES PROMOTION
Promotion means upward advancement of employees in organization to another
job which result in better wages, status responsibility and higher rank facilities.

The main objective of Eternal Motor Pvt. Ltd. is selling of cars so effective sales
promotion the profit of the company can increase. The Eternal Motors Pvt. Ltd. providing
different schemes to the Customer’s for sales promotion.

→ Finance to public by bank

→ Test drive

→ Live demonstration

→ Free car services

→ Road shows

→ Advertisement

Eternal Motor applies the above tools for the sales promotion.
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MARKET RESEARCH
For the adequate information about the market, it is necessary to make useful
research about the price, production advertising. This information is obtained from internal as
well as external market survey. Beginning and ending of marketing is marketing research
learning more about customer and dealers about marketing mix. Generally is heart of
marketing research. Marketing management has to really heavily on marketing research as
manufactured tool in solving any problem.

A company can obtain marketing research in a number of ways. Most large

companies have their own marketing research department, which often plays crucial roles
within the organization.

In the field of marketing, marketing research is an invaluable tool in decision

making based on scientifically investigation and analysis of marketing problem. Marketing
research is development interpretation and communication of decision-oriented information
to be used in the strategic marketing process.

The manager should understand the market situation and take decision about the
sales promotion. The manager should see competitors and their action. In Eternal Motors
Pvt. Ltd. the manager observes the action of competitors and makes market plans. With the
changes of plan of competitors the general manager changes their plans to stay in market.
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ADVERTISEMENT

Advertisement is most important element in the organization. Advertisement is

helpful in the organization. Advertisement told benefits of the product. A good Advertisement
can attract the customers. We can increase the selling through Advertisement. So
advertisement is necessary for every company. Advertisement provides the general idea
about the product and company. The Eternal Motor Pvt. Ltd. spends about Rs. 50000/- per
month in themselves by following sources.

→ Television

→ Newspapers

→ Templates

→ Demonstration
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PRICING POLICY

Eternal Motor Pvt. Ltd. is the dealer of Maruti Suzuki Cars. It sales the cars
produced by the Maruti Suzuki LTD. So the price of different cars is fixed by the Maruti
Suzuki LTD.

So the price of different Cars as under.

ALTO LX :-265167

WAGONR AX :-442049

M-800 AC :-221996

MARUTI SX4 :-725557

SWIFT VXI :-445820

ZEN VXL :-314938

A-STAR VXI :-376273

VERSA DXI 5 :-453561

SWIFT DZIRE :-517229

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OMNI CARGO :-206125

DEMAND ANALYSIS

In any company Demand Analysis is the most necessary work for the Manager. In
Eternal Motor Pvt. Ltd. manager ask the demand of the cars to the sales executives and on
information given by sales executives the general manager analyze the demand of particular
car.

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OTHER SERVICE PROVIDED TO THE

CUSTOMER’S

The Eternal Motor Pvt. Ltd. provides after sales services to the Customer’s. The
Company provides free car services after 1000 km. or 1 month whichever is early, 5000 km.
or 6 months whichever is early, 10000 km. or 12 month whichever is early, and 2 years car
warranty and other services like R.T.O, Maruti Insurance, Maruti, Finance, Extended
warranty etc.

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CONTENT

→ Introduction

→ Organization of personal department

→ Eternal culture

→ Recruitment and Selection

→ Training

→ Promotion and transfer policy

→ Performance appraisal system

→ Job description

→ Wages and Salary administration

→ Service to employees
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→ Welfare activities

→ Personal Records

INTRODUCTION
Human Resource Management involves the application of management function
and principle. The function and principles are applied to developing maintaining and
remunerating employees in the organization. Human Resource Management refers to a set
of a programmed, function and activities designed.

“Human Resource Management is a process of developing the skill, knowledge,

attitude and aptitude based on the organization’s requirement”.

In any company we see that human resource management must be their. In any
company human resource management is the most important work of the manager. Human
resource management plays most important role in any firm. It is most valuable assets of the
company though it is not recorded in the books of account. If the employee are satisfied then
it will be a most important and valuable assets of the company.

So in every company human resource must be carefully handled. If the human

resource are not properly organized or handled then it will be loss to organization. If the
employees are not satisfied then they will not motivate themselves for the organization goal.
If human resource management is not good you cannot achieve any organization goal.
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ETERNAL CULTURE

Our employees are our greatest strength and asset. It is this underling
philosophy that has molded our workforce in to a team with common goals and objective.
Our employees-management relationship is therefore characterized by:

→ Participative Management.

→Team work & Kaizen.

→ Communication and information sharing.

→ Open office culture for easy accessibility.

To implement this philosophy, we have taken several measures like a flat

organization structure. There are only three levels of responsibility ranging from the board of
directors, Division heads to Department heads. Other visible feature of this philosophy are an
open office, common uniforms (at all levels), and a common canteen for all.
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 ETERNAL MOTORS

This structure ensures better communication and speedy decision making

processes. It also creates an environment that builds trust, transparency and a sense of
belonging amongst employees.

RECRUITMENT AND SELECTION

“Recruitment means searching prospective workers and stimulating to apply for jobs
in the organization”.

“Selection means the right person at appropriate position in at appropriate place”.

The recruitment and Selection process is the overall manpower system. There
are several methods which are followed by Eternal Motors Pvt. Ltd. to select the candidates
at different level of hierarchy like through Advertisement, through Campus Interview, through
Reference etc. The candidates are selected and recruited as per the following.

(1) Firstly the candidates are inviting for the application. The advertisement
is given in the news paper.

(2) The qualified candidates are inviting for personnel interview.

(3) The candidates passed from the personnel interview are called for
Written test.

(4) This person pass the test are recruited or selected for the job.
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If the person pass above tests are selected and recruited for the job.

TRAINING

Training is plays most important role in any organization .Training is most helpful
function in the organization. If your training is good you achieve goal easily and employees
do his work very carefully and fast. The person selected for the particular job must be
trained. The person selected in Eternal Motor Pvt. Ltd. is trained by Maruti Suzuki Ltd. The
training is provided by the Maruti Suzuki Company to the employees of every authorized
dealer of Maruti Suzuki Ltd. because the employees of Eternal Motors Pvt. Ltd. have to sale
the cars of maruti Suzuki Company. So the training is provided by the maruti Suzuki
Company.

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PROMOTION AND TRANSFER POLICY

Promotion

According to Scott and clothier, “a promotion is the transfer of an employee to a job

which pays more money or one that carries some proffered status.” Although promotions are
made on the basis of ability, hard work, co-operation, merit, honesty, many informal
influences are powerful determinants of a promotional policy.

Promotion is a movement to a position in which responsibility and prestige are

increased. Promotion is a term which always welcomed by the employees. Promotion
means, an upward movement or advancement of employee in the organization to another
job which commands better wage/salary, status or prestige, high challenges and
opportunities. It is given to a suitable person who will be benefited to either side I.e. the
employee and the employer.
In Eternal Motors, there are 2 types of promotion policies.

 Seniority merit
In this method the senior as well as employee who is
working efficiently is promoted.

 Past performance
In this method promotion is made on the basis of past
performance
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Transfer policies

Transfer means change in the job or department without changing the responsibilities.
Transfer may be possible in the same department. Transfer is the movement of an employee
from one job or one place to another place without involving any substantial change in his
duties and responsibilities. Transfer is also a factor through which both organization and
employee can be benefited, sometimes, and get satisfaction.

There are 2 types of transfer in the company

 External
 Internal

Eternal Motors follows both types of transfer policy.

Internal transfer means other department. If a person working in personnel

department has more knowledge about finance, ha is transferred to finance department. A
person who is interested and company thinks that the person can fit in marketing department
then they will see is vacancy or not.
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PERFORMANCE APPRAISE SYSTEM

Performance appraisal is a process of evaluating the performance and qualification

of the employee in terms of requirement of the job for which he is employed for the purpose
of administration providing financial rewards and other actions which require the different
treatment among the members of a group of distinguished from action affecting all members
equally.

In every company the performance appraisal of every employee is necessary. In

Eternal Motor Pvt. Ltd. the H.R manager appraise the performance of the employees is
appraise by management by objective (MBO) method. In this method superior and
subordinates jointly identifies their common goal, defining each individual major aria of
responsibility in term of result accepted from them.

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JOB DESCRIPTIONS

A Job description is broad statement of purpose, scope, duties, and responsibility

of particular job. Job description is written summary after giving job of various rights
responsibility and organization relation. In Eternal Motor Pvt. Ltd. the job is describes in to
different parts. The main work of the company is selling of cars. The job is described in to
different parts and the whole work is assign to the different employees.

Factory manager has control over the other department his direct assistants are
personnel manager, finance manager and marketing manager through continue consultation
with the personnel manager. He formulates recommends and interprets all manpower
marketing policies and managerial development.

EX. One employee explain the finance facilities available to the

Customers. The other explain the features of cars and facilities of
Cars etc.
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WAGES AND SALARY ADMINISTRATION

In every company paid the wages and salary. Every employees work for his need.
The need is Salary and Wages. In Eternal Motor Pvt. Ltd. the wages and salary is paid to the
employee as per the qualification, performance and work.

The salary for the employees is as under:

Branch Manager - 30000 To 35000

General Manager - 15000 To 20000

Sales Executives - 5000 To 7000

Receptionist - 3000 To 3500

Mechanics - 2500 To 3000

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SERVICES TO EMPLOYEES

Eternal Motor Pvt. Ltd. provides the following services and facilities to their
employees:

(1) Uniform Facilities.

(2) Weekly Holiday.

(3) Festival Benefits.

(4) Bonus.

(5) Traveling Expenses.

(6) Mobile Allowance.

(7) Refreshment Programs.

Thus the ETERNAL MOTOR PVT. LTD. gives the above services for motivate the
workers and employees
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WELFARE ACTIVITIES

Every company or industry provides the various welfare activities. Eternal Motor
Pvt. Ltd. provides various welfare activities and facilities to his employees like regular picnic,
cricket, and trip, celebrate a birthday of employees.

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PERSONAL RECORDS

Personal Records is most important point in Human Resource Management. So all

H.R manager keep personal record of the employees. The Human Resource manager of
Eternal Motor Pvt. Ltd. records the performance of the employees on the based on weekly,
monthly and yearly. On the personal records the manager set the transfer or promotion.

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CONTENT

→ Introduction

→ Financial Planning

→ Organization of finance department and accounts

Department
→ Fixed assets

→ Capital Budgeting

→ Management of working capital

→ Finance to the Customer’s

→ Ratio analysis

→ Leverage
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INTRODUCTION

In every Company or Organization Finance is very important. Finance is life

blood for the any organization or any company. Finance is most important things for the
Company or organization. Nothing is possible without finance. Marketing is efficient, human
resource is properly managed but finance is not available then effective marketing is useless.
So the finance is the most valuable thong for any business organization. Finance is the most
important thing for running the business. Finance is like a blood in human body for the
business. Even in staring any business finance is necessary. So the management of finance
is necessary for every Company

“Financial management defined as procurement of fund and effective utilization

and to the achievement of business goal and target.”

Financial management refers to its relationship with closely related field to

economic and accounting. Generally, financial management is concerned with the
acquisition financing and management of assets with some overall goal in mind. It also
concerned with the financial operation and solution of its problem. Optional capital structure
is also an important part of financial management.
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FINANCIAL PLANNING

Planning is the design of a desired future state of an entity and of the

effective way of bringing it about. Also it involves the determination of the future causes or
action for accomplishing the objective of the enterprise.

Financial planning is essentially concerned with economical

procurement & profitable use of funds. A use which determined by realistic investment
decisions. Financial planning should estimate the resources that will be required to carry out
the operation of the firm and determine how for these resources can be generated by the
firm itself and how far they will have to be attained externally.

There are many sources of Eternal Motors Pvt. Ltd. like Bank, Maruti
Finance

→Banks: - The banks like HDFC, ICICI, Kotak Mahindra, SBS, SBI, and
Sundaram finance provides the finance to the Eternal Motor Pvt.
Ltd.

→Maruti Finance: - The Maruti Suzuki Company provides some percentage

Of authorized capital to all authorized dealer of Maruti
Suzuki Ltd.
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ORAGANISATION OF FINANCE AND

ACCOUNTS DEPARTMENT

In Eternal Motor Pvt. Ltd. the main decision taker of finance affairs is the CEO (Mr.
Subodh Jain) the structure of finance department are as follows.

STRUCTURE:

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FIXED ASSETS

Every Company has fixed assets. Fixed assets are a main liquidity of any company.
The fixed assets of Eternal Motor Pvt. Ltd. are as follows.

 Stock of Maruti Cars and accessories : 50 lacks

 Building : 1 cores

 Paint booth : 15 thousand

 Work shop machinery : 50 thousand

 Workshop : 5 lacks

 Post lift in work shop : 2 lacks

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CAPITAL BUDGETING

Capital Budgeting is the decision related to the company’s investment.

There are many cars of Maruti Suzuki Ltd. The Eternal Motor Pvt. Ltd. has to make decision
in which car they have to invest. The Eternal Motor Pvt. Ltd. invests in that car that are
mostly demanded and from that they can earn highest profit.

Basically Eternal Motor Pvt. Ltd. invests their capital in following Cars:

OMNI

MARUTI 800

ZEN

SWIFT D’ZIRE

WAGON-R

ALTO

These are the car which are mostly demanded and more beneficial for the Eternal
Motor Pvt. Ltd.
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MANAGEMENT OF WORKING
CAPITAL

Working Capital means the capital needed for the day to day expanses. Working
capital of the Eternal Motor Pvt. Ltd. includes the following.

 Inventories: Inventories means stock of goods. There are two types of inventories of
Eternal Motor Pvt. Ltd.

→ Maruti Suzuki genuine accessories.

→ Maruti Suzuki cars.

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FINANCE CUSTOMER’S

Eternal Motor Pvt. Ltd. provides finance to the customer’s to increase the sales.
Most of the cars sold by the Eternal Motor Pvt. Ltd. are from finance. The banks like HDFC,
ICICI, and Kotak Mahindra etc. provide finance to the customer’s.

 The bank provided 65% to the farmers.

 The bank provided 85% finance to the government servant.

 The bank provided 75% finance to the self employed people.

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RATIO ANALYSIS

 Profitability Ratio:

 Gross Profit Ratio = ( G.P./ Sales ) x 100

IF this ratio is low, it indicates that the cost of sales is high or the purchasing is inefficient.

 Net Profit Ratio = ( N.P. / Sales ) x 100

The net profit is unsatisfactory when gross profit rate is taken into account.
This evidently indicates that administrative and selling expenses are high.
Stock ratio = (stock in trade/ turn over) x 100

Liquidity Ratio:

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Curent Ratio = (Curent Assets / Curent Liabilities)

Liquid Ratio = (Liquid Assets / Liquid Liabilities)

= C.A. – Stock / C.L. – B.O.D.

This ratio represents a very comfortable liquid position. The working capital is
much more than the present requirement. This should be utilized to make prompt payment
to creditors and benefits of lower prices and cash discounts should be obtained.

LEVERAGE

Leverage simply means risk in technical firm. Leverage is used to describe firm’s
ability to use fixed cost assets and to magnify return to its owner. Higher the leverage higher
the expected return. Here risk may be defined as the degree of firm’s ability to cover its fixed
payment obligation.

There are three types of leverage:

1) Operative leverage,
2) financial leverage,
3) Combined leverage.

 Operative leverage:-
Operative leverage is defined as the ability to used fixed
operating cost magnifies the effect of change in sales on its operating profit. It can be
calculated with the help formula as mentioned here:-
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►Operative leverage = Contribution

E.B.I.T

Where,
Contribution = Sales- variable cost,

E.B.I.T = Contribution- fixed cost.

Degree of operating leverage= % Change in E.B.I.T

% Change in sales.

Where,
Change in E.B.I.T = Increase in E.B.I.T
E.B.I.T

Change in sales = Increase in sales

Sales

 Financial leverage:-

Financial leverage can be defined as the firms ability to use

fixed financial change to magnify the effect of change in E.B.I.T on the firm’s E.P.S. i.e.
E.B.T. It can be calculated with the help of formula as mentioned here number:

► Financial leverage = E.B.I.T

E.B.T

Where, E.B.T. (earnings before the tax) = E.B.I.T - INTREST

Degree of financial leverage = Change in E.P.S.

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Change in E.B.I.T

Where, Change in E.P.S = Increase E.P.S.

E.P.S.

Change in E.B.I.T = Increase in E.B.I.T

E.B.I.T

Based on the above two leverage, one leverage is also recommended via, combined
leverage

 Combined leverage:-

Combined leverage is nothing but the multiplication of

above two leverage. It can be calculated with the help of formula as mentioned here:

►Combined leverage = contribution

E.B.T.

OR

► Combined leverage = Operating leverage *Financial leverage

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BIBILOGRAPHY

For the study of the term clearly and carefully awareness of all the three management i.e.
Human Resources, Marketing and Finance, the following books become very much helpful for
the preparation of this project very well:

Human Resource Management by K Aswathappa

Marketing Management by Philip Kotler (12th edition)

Financial Management by Dr. Hitesh Shukla

Web Site:- www.maruti.co.in.

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