A Project Report on Atul Auto Ltd. by Jatin Trivedi Roll No.

A PROJECT REPORT ON ATUL AUTO LTD.

A PROJECT REPORT ON ATUL AUTO LTD.

Prepared By: JATIN TRIVEDI (MBA III SEM) Guided By : Dr. HITESH SHUKLA SHRI R.D. GARDI DEPARTMENT OF BUSINESS MANAGEMENT SUBMITTED TO SAURASHTRA UNIVERSITY, RAJKOT

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

COMPANY CERTIFICATE

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

DECLARATION Hereby, my self, Jatin H. Trivedi, a student of semester-III, MBA of Smt. R.D. Gardi Department of Business Management, declare that the project work presented in this report is my own work and has been carried out under the supervision of Dr. Hitesh Shukla, Associate Professor at Smt. R.D.Gardi Department of Business Management, Saurashtra University, Rajkot.

Date:Place :-

(Jatin H. Trivedi)

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

PREFACE The basic aim of the 3rd sem. management training Is to let the student aware of the basic proceedings going on in any industry, and let them grasp the information about the basic departments procedures………..rather the “basic” level is altogether different for different students, which is also a matter of consideration. However………….. As management is the work which is solely practical, it is important for every student to be competitive and dynamic in place of just being studious and theoretical. When I was in 2nd sem.I was given a chance to have been trained at any good industry I like, similarly as my other batch-mates. Being a PRODUCTION ENGNIEERING GRADUATE I was more attracted towards Manufacturing industry and that was one of the reason I choose Atul Auto Ltd., for my 3rd sem. Industrial training. The training proved to be a “real” learning experience for me and I learnt a lot from it regarding various departments like production, marketing , finance, human resource, etc., I got a lot new things to be learnt during my industrial both theoretical as well as of the practical world, that was all my industrial training was for, and I gained its total advantage.

Jatin H. Trivedi

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

ACKNOWLEDGEMENT I was unaware before about this type of excellent learning experience can be taken inside the industry. I am feeling completely grateful to God and the all relevant people who helped me for completion of this project report as well as for my learning. First I am heartily thankful to the Dr. Pratapsinh L. Chauhan [HOD – MBA Department], Dr. Girish Bhimani, [Associate Professor] Dr. Sanjay Bhayani [Associate Professor],and Hitesh J. Shukla [Associate Professor] From the deep feelings of my heart I present my gratitude towards Hitesh J. Shukla [Project Guide] for his valuable guidance in the completion of this project. I am feeling also attached with the family of ATUL AUTO LTD. For their members and departmental heads strong support and special help, Lastly but not lastly I present the feeling of gratitude towards my parents, colleagues, friends and all those who have supported me in completion of this training and project report. THANKS…

Jatin H. Trivedi

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

INDEX INDEX

PARTICULARS

1 2

EXECUTIVE SUMMARY INDUSTRY INFORMATION IN DETAIL HISTORY DEVELOPMENT PLAYERS ANALYSIS COMPANY INFORMATION HISTORY CURRENT POSITION PRODUCTS MARKET-COVERAGE FUNCTIONAL AREA INFORMATION PRODUCTION/OPERATIONS MARKETING FINANCE/ACCOUNTING HUMAN RESOURCE MANAGEMENT INCLUDING ORGANISATION STRUCTURE RESEARCH AND DEVELOPMENT GENERAL SUMMARY AND FINDINGS BIBLIOGRAPHY

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4

5 6

PG.NO .

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

EXECUTIVE SUMMARY Name of the Unit

Atul Auto Limited

Registered Office Address

Survey # 86, Plot # 1 to 4 N.H. 8-B, SHAPAR (VERAVAL) Dist.:- RAJKOT Tel.:- (02827) 252996/98/99 Fax.:- (02827) 252254

Corporate Office Address

“Jimmy Tower”, Gondal Road, Opp. Swaminarayan Gurukul, RAJKOT 360004. Tel.:- (0281) 2374991/92/93 Fax.:- (0281) 2374994

Forms of Organisation

Public Limited Company

Size of the Unit

Large Scale Unit

Name of the Bankers

State Bank of Inida Citizens Coporative Bank Ltd. Laxmi Vilas Co-operative Bank State Bank of Saurastre HDFC Bank Ltd.

Auditors

M/S. Maharshi & Co. Charted Accountants JAMNAGAR

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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E-mail Address

[email protected]

Web-site

www.atulautolimited.com

Nature of the Product

Production of Three-Wheelers

Company’s Turnover

98,91,29,942 Rs. In Year 20042005

Year of Establishment

1st May, 1992

Area Occupied

5,oo,ooo sq. ft.

Working Hours

8:45 a.m. to 5:30 p.m.

Founder of the Company

Lt. Mr. Jagjivanbhai Chandra

Brand Name

ATUL “SHAKTI”

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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INDUSTRY INFORMATION AND DETAIL

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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AUTOMOBILE INDUSTRY IN INDIA The Indian automobile industry is one of the well established in the developing world economy. Going back to 1942 Hindustan motors began their operations in India and started manufacturing the motorcars at that time Indian economy was just waking-up and still India was not free from British. After freedom Indian economy was very protected by the government and because of being under developed economy India couldn’t get such advantages, after almost 40 years of independence, Indian economy was opened to the world and license system came to an end. Reserved industry were put open to all. This all happen after 1991 reforms and by the start of new millennium this industry have start exporting the product and show the greatness of making things happen. . After that the Indian automobile industry grew slowly. Up to 1960 there were only few players in industry were producing vehicles. Like passer cars, rickshaws, and motorcycles and commercial vehicles. At that time the market of auto-industry was restricted. After three decades from 1960’s in 1991 the auto industry started growing at a higher rate the automobile industry grew at a compound annual growth rate (CAGR) of 22% between 1992 and 1997 with investment exceeding Rs. 50,000 Cr., the turnover of the automobile industry exceeded Rs. 59,518 Cr. In 2002-2003 Now It has been started happening that the progressive liberalization of the norms for foreign investment and import of technology appear to have benefited the automobile sector with production of total vehicles increasing from 4.2 million in 1998-1999 to 7.3 million in 2003-2004. it is likely that the production of such vehicle will exceed 10 million in the next couple years. In 2003-2004 the annual growth of auto industry was 16%. In 2004-2005, it was about 15%. In the year 2005-2006 it was 14%. With such a higher growth rate of Indian automobile industry, presently India is becoming the larger three-wheeler market in the worlds, second largest two-wheeler in the world, fourth largest passer vehicle market in Asia, Fourth largest tractor market in the world, fifth largest commercial market in the world.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

With such a higher growth rate of Indian automobile industry, presently India is becoming the larger three-wheeler market in the worlds, second largest two-wheeler in the world, fourth largest passer vehicle market in Asia, Fourth largest tractor market in the world, fifth largest commercial market in the world. Today, with a market capitalization of Rs. 15,665crores, the automobile industry stocks constitutes about 5,73 percent of the total market capital of the Bombay Stock Exchange (BSE) Sensitive Index (Sensed) and about 2.5 percent of the total market capital of the BSE. since 1991 opened me the Indian automobile market. The consumer is offered a letter range of choice to choose from as a result of the increased competitive environment in which the industry is operative. The entry of the major global players brought in to the country well-established manufacturing techniques and improved quality. This foreign competition and influx of manufacturing technology and techniques have helped the domestic auto industry players as they none not only successfully develop, manufacture and market vehicles in India but also are making roads into the global markets through exports. For e.g. TELCO exports its cars to Europe and also middle-east in the passenger car segment while Bajaj is also seeing increase in its exports of two- wheelers to the Middle East and the European countries.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

ANALYSIS OF AUTOMOBILE INDUSTRIES IN INDIA

In the FY 2005-2006 the total sales (Domestic Exports) of all the categories of automobiles were 97,16,718 units which was 13.95% more than the sales of last year 2004-05 which was 85,27,173 units The sales of passenger cars &UVS(utility vehicles) grew at 7.40% rate in the year 2005-06. In the 2004-05 the sales of passengers cars & UVS was 12,27,974 which was increased unto 13,18,809 in the year 2005-06.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

In the year 2004-05 the sales of commercial vehicles was 3,48,370 units which was grew at 12.31% in the FY 2005-06 & increased unto 3,91,264 units. The sales of total two-wheelers in the FY 2005-06 was 75,69,573 units which is 15.11% more than the sales of 2004-05 which was 65,76,172 units. According to official data the value of domestic sales of automobile & export together was more than1,10,000 crore in the year 2004-05 and it was more than 1,30,000 crore in the year 2005-06. For readers convenience the shares allotted to various companies in 1998 and 2000 also shown in pie chart in next page (share of world market).

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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PLAYERS IN THE AUTOMOBILE INDUSTRY                            

Daimler Chrysler India Pvt. Ltd. Fiat India Pvt. Ltd. Ford India Pvt. Ltd. General Motors India Pvt. Ltd. Hindustan Motors Ltd. Honda Siel Cars India Ltd. Hyundai Motors India Ltd. Maruti Udhyog Ltd. Skoda Auto India Pvt. Ltd. Tata Motors Ltd. Toyota Kirloskar Motor Pvt. Ltd. Force Motors Ltd. Mahindra & Mahindra Ltd. Ashok Leyland Ltd. Eicher Motors Ltd. Swaraj Mazada Ltd. Volvo India Pvt Ltd. Atul Auto Ltd. Bajaj Auto Ltd. Piaggio Vehicle Pvt. Ltd. Scooters India Ltd. Kinetic Engineering Ltd. Lml Ltd. Majestic Auto Ltd. Tvs Motor Co. Ltd. Royal Enfield Ltd. Suzuki Motor Cycle India Pvt. Ltd. Yamaha Motor India Pvt. Ltd

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

MISSION STATEMENT OF ATUL AUTO LTD.

TO DEVOTE OURSELVES FOR THE BETTERMENT AND COMFORT OF THE COMMON MAN THROUGH ADVANCED TECHNOLOGIES, PRODUCTS & SERVICES IN THE AUTOMOTIVE FIELD

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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BOARD OF DIRECTORS

Sr. No.

Name

Designation

1

Mr. J.J. Chandra

Chairman& M.D.

2

Mr. M.J. Patel

Joint M.D.

3

Mr. B.J. Chandra

Director

4

Mr. R.S. Kukreja

Director

5

Mr. R.H. Dhruva

Director

6

Mr.S.T. Kaneria

Director

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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OTHER ATUL GROUP COMPANIES 1. Atul Auto Ltd., {Manufacturers of Disel 3 Wheelers} 2. Atul Moters Pvt. Ltd., {Marketing of Maruti range of cars and 4 - Wheelers} 3. Atul Auto Agencies Ltd., {Distributers of Honda 2 Wheelers} 4. Atul Automotives {Distributers of Mahindra L C Vs} 5. Atul Petroleum’s {Dealing in Petroleum Fuels & Products}

6. Atul Tele Services {Mobile and Tele Communication Services} 7. Atul Rachna Pvt. Ltd {Real Estate Developers & Builders} 8. Khushbu Auto Finance Ltd. { uto Finance Company} 9. Khushbu Auto Pvt. Ltd. {Centralized Marketing Organization} 10. New Chandra Motor Cycle House {Distributors of LML Vespa Scooter, Royal Enfield Motor Cycles, etc}

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD.

HISTORY OF THE COMPANY ATUL GROUP of INDUSTRIES rajkot-jamnagar are the leading manufacturers of 3-wheeled commercial vehicles in the state of Gujarat. This group is founded by Late Mr. Jagjivanbhai karsanbhai Chandra. Mr. Jagjivanbhai was a visionary with extraordinary skill in dealing and developing of automobiles. Mr. Jagjivanbhai Chandra was constantly following the rapid change in the transportation needs of Indian Masses. The vision and automobile skill prompted him to experiment on the development of a Rural Transport vehicle which eventually replaces the Bullock Cart. He initially experimented on the Golf Carts, made available by Jam Saheb of Jamnagar. Subsequently through skillful use of Motorcycle, he created Rural Transport Vehicle, which meets all the transportation requirements from Rural Saurashtra. The vehicle created by Mr. Jagjivanbhai Chandra is popularly known in Saurashtra region of Gujarat as ‘CHHAKADA’. During late seventies, Mr. Jayantibhai Chandra, son of Mr. Jagjivanbhai Chandra stepped into the automobile venture founded by his father. Mr. Jayantibai inherited the vision and auto skill from his father. During this time due to the substantial price difference, Indian automobile industry was rapidly converting into Diesel Vehicles. Mr. Jayntibhai could immediately sense this change in the atmosphere. Through constant research, Mer. Jayantibhai created a Diesel Chhakada. This Chhakada an ideal Rural Transport Vehicle for Indian conditions, received such an overwhelming response that today more than 1,50,000 Chhakadas are operating in Saurashtra region alone. There is always a shortage of public transport facilities and in spite of having major investment, the public transport cannot cope up with the transportation needs of urban, semi urban and even small township areas. Like any other the motorcar taxis are expensive and beyond the reach of the common man. It is also not possible and economically feasible for every family or individual to own personal transport vehicle. After establishing CHHAKADA RTVL for common man in Rural Areas, Atul Group focused their attention towards the needs of common man in Semi-Urban and Urban areas. A detailed market survey was conducted and a niche market of half-tonner vehicle was identified. To take the proper advantage of this market niche, Atul group developed Half Tonner Commercial 3-Wheeler, branded as ‘SHAKTI’. The prediction of JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD. market potential was so accurate that Atul Group is doubling the production and turnover constantly for last three years. Today, the combined turnover of Atul Group is approximately Rs. 1.5 Billion (US $ 30 Million). Atul Group has ambitious programmers for the future. In addition to increase the production capacity, Atul Group is engaged to keep a pace with changing environment. The group is planning to introduce in near future:1. Micro Commercial Vehicle to carry 750 Kg. Payload. 2. Petrol 3-Wheelers. 3. CNG operated vehicles. 4. Vehicles running on LPG. 5. Range of Electric Commercial Vehicles. 6. 4 Wheeled One Tonner LCV. 7. Multi Purpose Universal Rural Transport Vehicle (RTVL). The management with vision and foresight through active support of dedicate and committed professional executives, will certainly take Atul Group of the new heights in the business scenario of the India Automotive Industries.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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FUTURE PLANS Three Wheelers With ever increasing population in India (Presently over One Billion) cargo and passenger vehicles have an extensive market both in Urban and Rural Areas. There is shortage of public transport facilities and in spite of having major investment; the public transport cannot cope up with the transportation needs of urban, semi urban and even small township areas. Like nay other country the motor car taxies are expensive and beyond the reach of the common man. It is also not possible and economically feasible for every family or individual to own personal transport vehicle. On this background a three-wheeled vehicle which is popularly know in our country as Auto Rickshaw came to India during early 1960s. Initially there were two manufacturers. M/s. Bajaj Auto Limited who had a license of Piaggio and M/s. Automobile Products of India Limited (API) who were the licensee of Inocenti, both from Italy. These vehicles were extremely popular and used to command a premium as supply was always shorter than the demand. Subsequently, M/s. Automobile Products of India Limited due to management and financial problems closed down the operation. This left only M’s. Bajaj Auto Limited as sole manufacturers of the Auto Rickshaws. M/s. Bajaj Auto, manufacture around 1,50,000 petrol vehicles per year. In the recent past other manufacturers, like Scooters India Limited, Kerala Automobiles, Piaggio-Greaves Limited, Atul Auto Limited, etc. have started manufacturing Auto Rickshaws. In India diesel price is almost 60% that of petrol prices and therefore theses manufacturers considered to produce diesel vehicles. Another strong reason for diesel vehicles is the availability of Lombardini Diesel Engines in India through Greaves Limited. The total production of diesel vehicles by all manufacturers put together is around 75,000 vehicles per annum. Hence the total supply of vehicles in the Indian market is around 2,25,000 vehicles per annum.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD. The present day demand is almost 3,00,000 vehicles per annum. Atul Auto are in process of expanding their activities. Still there is big gap between demand and supply. Therefore our next expansion would be to reach the manufacturing capacity of 30,000 vehicles per annum.

Light Commercial Vehicle 1-2 Ton Capacity {4Wheelers} Presently this segment of Light Commercial Vehicle is untapped in the Indian market and hence there is a very good scope for this product, provided the quality is good and that the product has features suitable to the Indian conditions. It is not necessary that the vehicle should have costly features for comfort, but it should stand rough & tough operating conditions and should have a cost effective engine to give desired performance at an affordable price.

LPG/CNG Vehicles India has already crossed the on billion mark for the population. Obviously, anything concerning basic needs of the people is viewed with national interest and greater depth. One of the most touchy subject is the pollution. It is a well accepted universal fact that major source of pollution is exhaust emission of the vehicles. Govt. of India has imposed stringent emission norms that all vehicles should meet eventually Euro-II standards. Small or big all vehicle manufacturers are struggling hard to meet these norms. Expensive R & D projects have been undertaken by the engine manufacturers to meet the Emission requirements. In the process it is identified that engines or vehicles using gas can pass through the emission norms without much of a difficulty. Hence Govt. Of India is encouraging for use of gaseous fuels on the vehicles. Govt. of India imposed use of CNG on Commercial vehicles in Indian Capital Delhi. The pollution levels, over a period have drastically reduced in Delhi. The extensive use of motorized 2-wheelers, Ever-increasing population of Motor Cars and heavy polluting public Transport Vehicles have raised the pollution levels in majority of Indian cities at an alarming level. With the encouragement from Delhi experience, Govt. of India has decided to impose use of CNG/LPG on commercial vehicles, in all the Indian cities. Distribution of Compressed Natural Gas (CNG) is controlled by govt. agencies. Whereas Liquefied Petroleum Gas (LPG) is fully liberalized by private sector. CNG is expected to be available in the cities having access through pipelines. All other places LPG is expected to be used. Many private sector companies have already commenced operation of import & distribution of LPG and therefore LPG dispensing stations will be a reality in immediate future. We at Atul Auto are there fore seriously working to develop and manufacturer CNG & LPG operated vehicles.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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ATUL AUTO LIMITED

with the help of other Atul Group Companies is poised to establish a strong business house wherein Atul Auto Limited’s manufacturing capacity and automobile experience reinforced and supported by other group companies’ financial and management strength, together with nation wide trading and servicing network would be a formidable force to venture for the products like Micro Commercial Vehicle to carry 750 kg. Payload. Petrol 3- Wheelers. CNG operated vehicles. Vehicles running on LPG. Range of Electric Commercial Vehicles. 4-Wheeled One Tonner LCV. Multi Purpose Universal Rural Transport Vehicle (RTVL).

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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PRODUCTION DEPARTMENT

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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INTRODUCTION Production is fabrication of physical object through use of men, material and equipment. Production means creation of utilities and entails the procurement and utilization of factors of production, which includes manpower material guiding and equipment. Production must be operated in an economic and efficient manner because cost of production is vital factor in facing market competition and in ensuring normal profit or return on investment. Among all the functional areas of management’s production is considered in any industrial organization as unique. production is the process by which, raw materials and other inputs are converted in to finish product. Nature of production can be better understood if we view the manufacturing function from the different angle as 1) Production as a system 2) Production as an organization function 3) Decision making in production.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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ORGANIZATION STRUCTURE OF PRODUCTION DEPARTMENT

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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PRODUCTION PLANNING & CONTROL Production Planning Realistic capacity and production planning is key for any manufacturing operations. Poor capacity planning will lead to bottlenecks, probable delays in customer deliveries, and potentially lost sales. The planning of interrelated manufacturing processes is a complex task, as the optimal production plan should not only be feasible and free of bottlenecks, but should also strive to minimize cost. The set of policies and procedures that are used to manage work flow, inventories backlogs and changes in the level of production rate comprise, what is called a production planning and control system. The process of developing kind of relationship between market demands and production capability is the function of production planning and control or sometimes referred to as production control. At Atul Auto Ltd., production planning is done on monthly basis and then it is divided by and on the weekly basis. E.g. Suppose the target is 900vehicles as at the time of original production of vehicles are targeted as nearly 220 vehicles per week. It is also depends on raw material and lead-time. Process planning takes place three months advance for in house manufacturing item.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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Make or Buy Decision What is a Make-Buy Decision? Almost any product or service available in the marketplace today involves inputs of one kind or another: raw materials are turned into subcomponents, subcomponents are then assembled to form finished products or are used as an input to some kind of service, etc. However, few companies have all the resources and expertise required to fulfill all of these functions. Sooner or later, a firm generally has to rely on other firms to supply at least some of these inputs. But what tasks and functions should be performed in-house— that is, within the firm—and which ones should be relegated to outside suppliers? And for those tasks that it chooses to outsource to other firms, what type of relationship should be developed with the supplying companies? These questions point to a recurring set of issues that are collectively referred to as "make-buy decisions." A single make-buy decision in and of itself may not seem to be of great consequence to a company. Among the many components and services that a firm uses to generate revenues, relatively few are singularly of critical importance to the firm’s immediate survival or success. But the aggregate of these decisions effectively defines the scope of what a company is and is not doing. In other words, the resolution of makebuy questions defines the boundary of the firm.

Atul Auto Ltd's production planning & control department takes such decision. And for such decisions PPC department co-ordinates with marketing department because marketing department inters how much quantity require. Inventory control in purchase order, schedule, follow up, in-house manufacturing, planning. All these are function of PPC department.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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PRODUCTION PROCESS ATUL AUTO LTD. Has separate manufacturing department. The company producing generally diesel vehicles. So its demand very lengthy and accurate process and it is also time consuming process. Manufacturing process. Following are the main parts which are combined in the manufacturing. 1) Body and front show 2) Chassis 3) Internal Parts and Accessories The production process of three wheeler in Atual Auto Ltd can be summarized as follows. PURCHASE OF RAW MATERIAL: The main raw material, which is used by the company, is iron. Company purchases different varieties of iron like, iron angles, iron sheets, iron pipes, etc. This raw material imports from Shaper, Rajkot and Ahmedabad by the company. The raw material is stored in storeroom. CUTTING OF RAW MATERIAL: After receiving raw material, the process of cutting as per requirement is done by the workers. Iron angles sheets and pipes are cut as per need in cutting department CHASSIS SECTION Where the chassis is manufactured according to size, shape and standards. Main row material for chassis is iron and steel. SHAPING: The raw materials, which were out, are given shape on shaping machine. Iron pipes angles and sheets are given shapes as per its place in vehicles. FLEXING OF COMPONENTS: The Raw materials, which were out, are given shape on shaping machine. Iron pipes angles and sheets are given shapes as per its place in vehicle.

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD. Different components, which were fixed by joining different parts of irons are assemble in assembling department and after completion of this process, half of the process is finished here. FABRICATION & BODYBUILDING SHOP Where the body of three wheelers is built over here from mild steel through mounting, cutting, pressing and welding processes. BODING: In this part of the production process the vehicles is given heat, so that color word not depart from iron. Painting is done in similar way after a component is done in electric over at suitable temperature. PAINTING: After boding process the painting process is carried out. HEATING: After paintings process the vehicles is given heat, so that color word not depart from iron. Painting is done in similar way after a component is done in electric oven at suitable temperature. PRE-DELIVERY INSPECTION: The products are being checked before delivery, so that if any can be removes from vehicles. So that customers would not get dissatisfaction after purchasing company’s product.

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PLANT LOCATION Plant Location: A good location may reduce the cost of production and distribution to a considerable extent. ATUL AUTO LTD. Includes a large relatively, permanent investment. Rajkot region was very much backward in terms of industrial activities, shaper’s people are also backward for economically and socially. So government decided to develop the area with the establishment of the factory. The government of India provided the electricity land by low cost, water , supply line other facility to Atul Auto Limited Company. FACTOR AFFECTING THE PLANT LOCATION: Industrial organization means the combination and coordination of capital, labor, machinery and raw materials. The main basic goal is minimize the cost of production and also required throught out business policy. ATUL AUTO LTD. Industry is determined by taking into consideration the following factors: (a) Primary factors - supply of raw material - nearness to market - transport facilities - labour supply - availability of power - supply of capital (b) -

Secondary Factors: Facilities Natural factors Political factors Government subsidies and facilities Historical and religious factors Goodwill Personal factors Miscellaneous factors

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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PLANT LAYOUT Plant layout means arrangement of material, machine and equipment, so that it provides the best kind of cooperation for the path of production. In result the production process will provide maximum of best quality at minimum possible cost. There are three types of plant layout (1) Process layout (2) Product layout (3) Fixed or static layout In Atul Auto Ltd. There are various sub-departments under the production department as follows. (1) Machines shop department (2) Fabrication & Body Blinding shop (3) Paint shop (4) Assembly & Testing Department

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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QUALITY CONTROL AND QUALITY ENGINEERING In engineering and manufacturing, quality control and quality engineering are involved in developing systems to ensure products or services are designed and produced to meet or exceed customer requirements. These systems are often developed in conjunction with other business and engineering disciplines using a cross-functional approach. In ATUL AUTO LTD. Various responsibilities are shared by various higher authorities such as starting from G.M. of production till helper. Quality Control Checking Procedure The quality control of components are made in two way 1)

In-house inspection and quality control

Material which is produced in the plant its self is check as per drawings & standards in in-house quality control department. 2)

Vendor Purchase quality control department

The material which is received from out side the plant is checked as per Goods Receipt Not (GRN) There are various modern machine in quality control department to me sure the quality as per standards and drawings. There are, 1. Profile Projector 2. Hardness Tester 3. Gear Rolling Tester etc…..

JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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QUALITY ASSURANCE Quality Assurance covers all activities from design, development, production, installation, servicing and documentation. This introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes. One of the most widely used paradigms for QA management is the PDCA (Plan-Do- Check-Act) approach, also known as the Shewhart cycle.

Failure testing A valuable process to perform on a whole consumer product is failure testing, the operation of a product until it fails, often under stresses such as increasing vibration, temperature and humidity. This exposes many unanticipated weaknesses in a product, and the data is used to drive engineering and manufacturing process improvements. Often quite simple changes can dramatically improve product service, such as changing to mould-resistant paint or adding lock-washer placement to the training for new assembly personnel.

Statistical control Many organizations use statistical process control to bring the organization to Six Sigma levels of quality, in other words, so that the likelihood of an unexpected failure is confined to six standard deviations on the normal distribution. This probability is less than four one-millionths. Items controlled often include clerical tasks such as order-entry as well as conventional manufacturing tasks. Traditional statistical process controls in manufacturing operations usually proceed by randomly sampling and testing a fraction of the output. Variances of critical tolerances are continuously tracked, and manufacturing processes are corrected before bad parts can be produced.

Company quality During the 1980s, the concept of “company quality” with the focus on management and people came to the fore. It was realized that, if all departments approached quality with an open mind, success was possible if the management led the quality improvement process.

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A PROJECT REPORT ON ATUL AUTO LTD. The company-wide quality approach places an emphasis on three aspects :1. Elements such as controls, job management, adequate processes, performance and integrity criteria and identification of records 2. Competence such as knowledge, skills, experience, qualifications 3. Soft elements, such as personnel integrity, confidence, organizational culture, motivation, team spirit and quality relationships. The quality of the outputs is at risk if any of these three aspects are deficient in any way. The approach to quality management given here is therefore not limited to the manufacturing theatre only but can be applied to any business activity: • • • • • • • •

Design work Administrative services Consulting Banking Insurance Computer software Retailing Transportation

It comprises a quality improvement process, which is generic in the sense it can be applied to any of these activities and it establishes a behavior pattern, which supports the achievement of quality. This in turn is supported by quality management practices which can include a number of business systems and which are usually specific to the activities of the business unit concerned. In manufacturing and construction activities, these business practices can be equated to the models for quality assurance defined by the International Standards contained in the ISO 9000 series and the specified Specifications for quality systems. Still, in the system of Company Quality, the work being carried out was shop floor inspection which did not control the major quality problems. This led to quality assurance or total quality control, which has come into being recently.

Total quality control Total Quality Control is the most necessary inspection control of all in cases where, despite statistical quality control techniques or quality improvements implemented, sales decrease.

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A PROJECT REPORT ON ATUL AUTO LTD. The major problem which leads to a decrease in sales was that the specifications did not include the most important factor, “What the customer required”. The major characteristics, ignored during the search to improve manufacture and overall business performance were: • • •

Reliability Maintainability Safety

As the most important factor had been ignored, a few refinements had to be introduced: 1. Marketing had to carry out their work properly and define the customer’s specifications. 2. Specifications had to be defined to conform to these requirements. 3. Conformance to specifications i.e. drawings, standards and other relevant documents, were introduced during manufacturing, planning and control. 4. Management had to confirm all operators are equal to the work imposed on them and holidays, celebrations and disputes did not affect any of the quality levels. 5. Inspections and tests were carried out, and all components and materials, bought in or otherwise, conformed to the specifications, and the measuring equipment was accurate, this is the responsibility of the QA/QC department. 6. Any complaints received from the customers were satisfactorily dealt with in a timely manner. 7. Feedback from the user/customer is used to review designs. 8. Consistent data recording and assessment and documentation integrity. 9. Product and/or process change management and notification. If the original specification does not reflect the correct quality requirements, quality cannot be inspected or manufactured into the product. For instance, all parameters for a pressure vessel should include not only the material and dimensions but operating, environmental, safety, reliability and maintainability requirements. To conclude, the above forms the basis from which the philosophy of Quality Assurance has evolved, and the achievement of quality or the “fitness-for-purpose” is “Quality Awareness” throughout the company. ATUL AUTO LTD. Is doing a quality assurance by these some steps like quality specification, quality standards inspection and testing, periodical evolution.

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STORES DEPARTMENT In Atual Auto Ltd. There is separate stores department, in which different inventories, tools, spears, parts, equipments are being maintained. There are four sub stores department. 1. General Stores In which all the finished parts are kept at minimum level of items required regularly. 2. Receive Stores Where all the materials are being kept which is coming from out side. 3. Fabrication stores Where the materials and other items related to fabrication department is kept over here. 4. Machine Shop Stores Where the items repeated to machine shop is being kept. The all sub-stores department are interlinked with each other with computerized system and the whole stores department is connected with other department like purchase, quality control, finance etc…..

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MARKETING DEPARTMENT

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INTRODUCTION Marketing management is a business discipline focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand in a manner that will achieve the company's Definition and scope There is no universally accepted definition of the term. In part, this is due to the fact that the role of a marketing manager can vary significantly based on a business' size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product category or brand with full profit & loss responsibility. In contrast, a small law firm may have no marketing personnel at all, requiring the firm's partners to make marketing management decisions on a largely ad-hoc basis. In the widely used text Marketing Management (2006), Philip Kotler and Kevin Lane Keller define marketing management as "the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value." [1] From this perspective, the scope of marketing management is quite broad. The implication of such a definition is that any activity or resource the firm uses to acquire customers and manage the company's relationships with them is within the purview of marketing management. Additionally, the Kotler and Keller definition encompasses both the development of new products and services and their delivery to customers. Noted marketing expert Regis McKenna expressed a similar viewpoint in his influential 1991 Harvard Business Review article "Marketing is Everything." McKenna argued that because marketing management encompasses all factors that influence a company's ability to deliver value to customers, it must be "all-pervasive, part of everyone's job description, from the receptionists to the Board of Directors." [2] This view is also consistent with the perspective of management guru Peter Drucker, who wrote: "Because the purpose of business is to create a customer, the business enterprise has two--and only these two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business."[3] But because many businesses operate with a much more limited definition of marketing, such statements can appear controversial, or even ludicrous to some business executives. This is especially true in those companies where the marketing department is responsible for little more than developing sales brochures and executing advertising campaigns.

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A PROJECT REPORT ON ATUL AUTO LTD. The broader, more sophisticated definitions of marketing management from Drucker, Kotler and other scholars are therefore juxtaposed against the narrower operating reality of many businesses. The source of confusion here is often that inside any given firm, the term marketing management may be interpreted to mean whatever the marketing department happens to do, rather than a term that encompasses all marketing activities -even those marketing activities that are actually performed by other departments, such as the sales, finance, or operations departments.[4] If, for example, the finance department of a given company makes pricing decisions (for deals, proposals, contracts, etc.), that finance department has responsibility for an important component of marketing management -- pricing.

Activities and functions Marketing management therefore encompasses a wide variety of functions and activities, although the marketing department itself may be responsible for only a subset of these. Regardless of the organizational unit of the firm responsible for managing them, marketing management functions and activities include the following:

Marketing research and analysis In order to make fact-based decisions regarding marketing strategy and design effective, cost-efficient implementation programs, firms must possess a detailed, objective understanding of their own business and the market in which they operate.[5] In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning. Traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, and Competitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some marketing circles to divide these further into five "Cs": Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context. The focus of customer analysis is to develop a scheme for market segmentation, breaking down the market into various constituent groups of customers, which are called customer segments or market segments. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the segments: demographic, psychographic, geographic, behavioral, needs-benefit, and other factors may all be examined. Marketers also attempt to track these segments' perceptions of the various products in the market using tools such as perceptual mapping. In company analysis, marketers focus on understanding the company's cost structure and cost position relative to competitors, as well as working to identify a firm's core competencies and other competitively distinct company resources. Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also

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A PROJECT REPORT ON ATUL AUTO LTD. conduct periodic brand audits to assess the strength of its brands and sources of brand equity.[6] The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be performed if such products exist. Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others.[7] Depending on the industry, the regulatory context may also be important to examine in detail. In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include: • • • •

Qualitative marketing research, such as focus groups Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.

Marketing strategy Main article: Marketing strategy Once the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals. To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as

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A PROJECT REPORT ON ATUL AUTO LTD. targets because they score highly on two dimensions: 1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably.[5] In fact, a commonly cited definition of marketing is simply "meeting needs profitably." [1] The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firm may go so far as to turn away customers that are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons. In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products.[8] For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance." Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage.[9] The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers.[8]

Implementation planning After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: Product management, Pricing, Place (i.e. sales and distribution channels), and Promotion. Taken together, the company's implementation choices across the 4Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm's marketing and financial objectives.

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A PROJECT REPORT ON ATUL AUTO LTD. In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes: • • • • • • • • • • •

An executive summary Situation analysis to summarize facts and insights gained from market research and marketing analysis The company's mission statement or long-term strategic vision A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved Implementation choices for each element of the marketing mix (the 4Ps) A summary of required investments (in people, programs, IT systems, etc.) Financial analysis, projections and forecasted results A timeline or high-level project plan Metrics, measurements and control processes A list of key risks and strategies for managing these risks

Project, process, and vendor management Once the key implementation initiatives have been identified, marketing managers work to oversee the execution of the marketing plan. Marketing executives may therefore manage any number of specific projects, such as sales force management initiatives, product development efforts, channel marketing programs and the execution of public relations and advertising campaigns. Marketers use a variety of project management techniques to ensure projects achieve their objectives while keeping to established schedules and budgets. More broadly, marketing managers work to design and improve the effectiveness of core marketing processes, such as new product development, brand management, marketing communications, and pricing. Marketers may employ the tools of business process reengineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly. Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasing department on the procurement of these services.

Organizational management and leadership Marketing management usually requires leadership of a department or group of professionals engaged in marketing activities. Often, this oversight will extend beyond the company's marketing department itself, requiring the marketing manager to provide cross-functional leadership for various marketing activities. This may require extensive

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A PROJECT REPORT ON ATUL AUTO LTD. interaction with the human resources department on issues such as recruiting, training, leadership development, performance appraisals, compensation, and other topics. Marketing management may spend a fair amount of time building or maintaining a marketing orientation for the business. Achieving a market orientation, also known as "customer focus" or the "marketing concept", requires building consensus at the senior management level and then driving customer focus down into the organization. Cultural barriers may exist in a given business unit or functional area that the marketing manager must address in order to achieve this goal. Additionally, marketing executives often act as a "brand champion" and work to enforce corporate identity standards across the enterprise. In larger organizations, especially those with multiple business units, top marketing managers may need to coordinate across several marketing departments and also resources from finance, R&D, engineering, operations, manufacturing, or other functional areas to implement the marketing plan. In order to effectively manage these resources, marketing executives may need to spend much of their time focused on political issues and inter-departmental negotiations. The effectiveness of a marketing manager may therefore depend on his or her ability to make the internal "sale" of various marketing programs equally as much as the external customer's reaction to such programs.[1]

Reporting, measurement, feedback and control systems Marketing management employs a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers -- in the marketing department or elsewhere -- to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner. Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Recently, some software vendors have begun using the term "marketing operations management" or "marketing resource management" to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems. Measuring the return on investment (ROI) of and marketing effectiveness various marketing initiatives is a significant problem for marketing management. Various market research, accounting and financial tools are used to help estimate the ROI of marketing investments. Brand valuation, for example, attempts to identify the percentage of a company's market value that is generated by the company's brands, and thereby estimate the financial value of specific investments in brand equity. Another technique, integrated

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A PROJECT REPORT ON ATUL AUTO LTD. marketing communications (IMC), is a CRM database-driven approach that attempts to estimate the value of marketing mix executions based on the changes in customer behavior these executions generate.[10]

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A PROJECT REPORT ON ATUL AUTO LTD.

ORGANIZATION STRUCTURE OF MARKETING DEPARTMENT

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A PROJECT REPORT ON ATUL AUTO LTD.

PRODUCT Product is anything that is capable of satisfying human need directly or indirectly. Product is what a seller has to sell and what a buyer has to buy. "A product is anything that can be offered to a market for attention, acquisition, use or consumption, that might satisfy a want or needy it includes physical , products, services, persons, places, organizations and ideas." Some prefer to use the word 'production' in place of product. In any case, a product is a bundle of utilities which enables the consumers to satisfy their needs. Its rightly said by someone that ,'it is utility, not product, which is sold and bought'

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A PROJECT REPORT ON ATUL AUTO LTD.

CHARACTERISTICS OF PRODUCT  COMMODITY OR SERVICES A product is either material or immaterial, in other words, goods and services both are included in the definition of product.  PROCESS Production is a process which is divided into various stages. The input has to pass from a number of stages before it turns into output.  ADDITION OF VALUE When a raw-material is transformed into a final product, it becomes consumables. And enhance it commands a greater value than the raw-material. The factors of production like land, labour, capital and entrepreneurship can be easily rewarded for their services out of this positive difference of value. A product is a result of the transformation activity. Utility is created by changing the form of an article and it satisfies human needs. Thus, creation of utility is an important feature of a product.  USE OF FACTORS OF PRODUCTION By the factors of production we mean inputs or resources which are used in making a final product. In economics, these factors are divided into four groups: (i) Land (ii) Labour (iii) Capital (iv) Entrepreneurship It is the entrepreneur who brings land, labour and capital under the same roof, combines them and produces a commodity.

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PRODUCT MIX Product mix refers to the collection products produced and sold by a firm. Product-mix includes those products which satisfy the needs of different classes of buyers. And are complementary to each other, and not competitive. All individual items of passenger and loading auto rickshaws represent the product mix of ATUL AUTO LTD. PRODUCT MIX WITH WIDTH, DEPTH, LENGTH AND CONSISTENCY [A] PRODUCT WIDTH: The number of product lines offered by a firm is known as product-mix width. The width of ATUL AUTO LTD. Are two products.  auto rickshaw of passenger.  Auto rickshaw of loading [B] PRODUCT DEPTH: The average number of product items offered by a firm within a particular product line is known as depth. The depth of passenger auto rickshaw are:  passenger deluxe  atul shakti super deluxe.  4 passenger and one driver.  3 passenger and one driver. The depth of loading auto rickshaw are :  delivery van  pick-up van  drive away chassis  pick-up standard.  Pick-up soft-drink carriers.  Special purpose delivery van [c] PRODUCT LENGTH: A total products in the depth of the company is known as length The length of ATUL AUTO LTD. Is 10 in which there are 4 type of passenger auto rickshaw and 6 types of loading auto rickshaw. [D] PRODUCT CONSISTENCY: It says that how closely related the various product lines are in one way or another. At ATUL AUTO LTD. There is consistency in two product lines. JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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PRODUCT LIFE CYCLE: . Products like people have life cycles from its birth to its death. A product exists in different slays and in different comities. Environment if adjustment to these environments determines to a great degree just how successful its life will be. To better manage the cycle it is useful to devide a products life into four stays. 1) introduction: A period of slow sales growth as the product is introduced in market. 2) growth: A period of rapid market accepted and substantial profit improvement. 3) maturity:” A slowdown in sales growth because the product has achieved acceptance by most potential buyers. 4) decline: falling sales and exit.

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NEW PRODUCT DEVELOPMENT A company can all new product through accusation or development. The acquisition r oute can take three-fours. The company can but other companies. It can acquire patents from other companies. Or it can buy a license or franchise from another company. The development route can take two forms. The company can develop new product in its own laboratories, or it can contract with independent researchers or new product development firms to develop specific new product. Atul Auto Limited have their own product. They do not need of any new product development or do not need of any acquisition. The components related to product planning and development are as under:  product standardization  product diversification Now a days “ATUL AUTO PRIVATE LIMITED” is engaged in the modern changes i.e. to make petrol using three wheelers in place of diesel users. It provides more facility to their reputation as well as their brand equity.

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A PROJECT REPORT ON ATUL AUTO LTD.

BRANDING INTRODUCTION: The branding strategy for a company reflects the number and nature of common and distinctive brand elements applied to the different product sold by the company. The company related with news paper and its brand name is business standard. In brands its have different components like logos. Brand names, symbols, package designs. BENEFITS OF BRAND: (1) Brand may expand average. (2) Brand provide protection (3) Brand extend an image. (4) Brand can minimize overlap and thus optimize the portfolio “ATUL AUTO PRIVATE LIMITED” chosen the brand name which is recognized in govt. office. The brand name of the company is known as “international Brand”. The symbol of company’s trademarks brand is given below. Thus the trademark is essential legal terms protecting the manufacturer’s rights to use the brand name.

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PRICING DECISION INTRODUCTION Price play a significant role in the economic system of capitalism in an individual firms marketing programmed and in a consumers perception of a product’s quality. A company’s pricing structure is influenced by state and federal legislation the price of a product or service is major determinable of the market demand for the item price will affect the firm’s competitive position and its share of the market as a result price has a considerable beating on the company result and net profit. Price is value expressed in terms of any monitory medium may be in the country when the exchange occurs. After management has set the basic or just price its product , it must turn its attention to the many facts of the price system that requires the formulization of specific polices what kind of quantity discount schedule will it adopt?? There are number of pricing policy:

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METHODS OF PRICING Price is the reward, revenue or income of the company which is paid by the customer on buying the product. It is the exchange value in terms of money to set a price of the product every company must follow certain steps. Such steps are: (1) (2) (3) (4) (5)

setting price objectives. Determining demand Estimating cost Analyzing competitors cost, price and offers. Setting a price method.

The method being selected by “ATUL AUTO PRIVATE LIMITED” is cost + profit (%) which is most beneficial and useful for automobile industry. Some times they are also fixing the prices according to demand and supply of the product itself. In “ATUL AUTO PRIVATE LIMITED” pricing is set as follows: Basic price (Total raw-material used)        

Cost of production Excise duty Sales tax Local govt. tax Transportation and insurance Dealers commission Operating cost Profit

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PROMOTION MIX INTRODUCTION: Essential purpose of promotion is to change the location and shape of demand of company’s product through the use of promotion a company hopes to increase a products sales volume at any given price promotion is an excurses in information persuasion and influence. Determination of most effective promotion mix is one of the difficult task in marketing management. Several different promotional tools or combinations there of may be used. Following one some factor which influence management decision making with respect to promotion mix (1) (2) (3) (4)

the amount of money available for promotion The nature of market The nature of product The stage of the product life cycle.

There are different means of promotion mix like advertisement sales promotions publicity and personal selling ADVERTISEMENTS: Advertisement consist of all the activities involved in p resenting to a group non – personal oral or visual openly sponsored message reading a product service or idea this message caller advertisement. It helps to increase the sell of product and indirectly increase the product advertisement is generally for three purposes: (1) To inform (2) To remember (3) To encourage There are different types of media available in the market such as print media, audio visual media, exhibition etc. “ATUL AUTO PRIVATE LIMITED” prefers to give advertisement in news paper at regular interval of time and also distributing some pamphlets and brawlier at different centers.

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A PROJECT REPORT ON ATUL AUTO LTD.

SALES PROMOTION For increase the sales, some sales promotional activities are essential. It is a process of creating demand for the commodity. But it is totally different from advertising and publicity. Company gets the benefits of awareness of consumers towards the product. As mentioned above sales promotion is totally differed from advertising and publicity. There are such popular ways of sales promotions such as (1) Buy 3 get 1 free (2) Discount (3) Free trail (4) Exchange offer (5) Free gifts (6) Replacement etc. As far as “ATUL AUTO PRIVATE LIMITED” is concern they provide quantity as well as cash discount to their distributors as a part of sales promotion.

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CHANNEL MANAGEMENT DEFINATION: It refers to flow or movement of goods from producer to ultimate consumer of the products. OBJECTIVES : (1) achievement of best possible coverage of target market. (2) Assuming that consumer incur in mini, execration producing the product. Ensuring the distribution is most effective. Once the product is ready for market the next step in a marketing process is to determine what methods and route will be used to bring the product to the market. This involves establishing distribution strategies including selecting channel of distribution and providing for a physical handling and distribution There are different type of channellike are in existence. (1) zero level channels (2) One level channel (3) Two level channel (4) Multi level channel “ATUL AUTO PRIVATE LIMITED” has very easy and simple distribution channel. There is only one middleman between company and consumer i.e. dealer the company sands product to dealer and there by the consumer directly contact with dealer the dealer performs the act of seller. MANUFACTURER  DEALER (SHOWROOMS)  CONSUMER.

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HUMAN RESOURCES DEPARTMENT

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INTRODUTION As one author has rightly said 1+1 makes an organization, i.e. where there are two or more persons there is in effect an organization. Some individuals prefer to work independently in isolation. But the vast majority of all work in today’s environment takes place within the context of a structured organization – a grouping of individuals in to a unified and common effort. An organization may be a manufacturing firm, a business concern, an insurance company, a government agency, social organization, a university, a religious trust and even a family. It may be small or large, simple or complex. An organization is a human grouping in which work is done for the accomplishment of some specific goals, or missions, For Example, the goal of a manufacturing concern might be to produce and supply the goods and services to satisfy the demand of the market. Organizational objectives are most likely to be modified over a period of time, as per the changing need and circumstances. Organizational objectives are most likely to be multiple, as the organizational tries to achieve several goals and to serve a number of different categories of people. In order to achieve the goals, a well-run organization works out a set of rules sometimes called policies, programmes , rules, regulations, procedures or guidelines and sanctions. These are designed not to restrict creativity but to assist its members in accomplishment of the organizational goals. Atul Auto Limited has given more and more importance to personnel department as a result the personnel department of the company is efficient one. All the employees are satisfied with the company. Company is having total staff of 462 people. We can categorize them into different level and that are: 1. Managers 28 2. Staff members 130 3. Workers 304 {i} skilled {ii} semi-skilled {iii} unskilled

90 100 114

working hours 9:00 am to 1:00 pm 1:00 pm to 1:30 pm break 1:30 pm to 5:30 pm Thursday is off-day for production and personnel department While Sunday is off for Marketing and finance Department

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A PROJECT REPORT ON ATUL AUTO LTD. During my industrial training period at Atul Auto Limited, I found that there is a limited staff and each person working in this unit is quite satisfied with their work and with the company.

EMPLOYEE WELFARE AND BENEFITS: Every worker is heart of the company. The production work is based on efficient and effective work force. Without good co-operation of workers no organization can run successfully and can not able to make its progress continuously. Each and every company tries to satisfy their worker by giving them different incentives. As far as Atul Auto Limited is concern, Company provides following facilities to their employees. 1. Accommodation facility The company provides free accommodation facility to their employees only and not to their family member. Accommodation is facility is given in factory premises itself, this facility is generally for those worker who are not able to afford the rent in the city or who comes from other place or state. And of course all care is taking that the worker gets all the basic facilities such as electricity and water. 2. Canteen Facility: The other facilityprovided to the employee is of canteen. There is huge canteen which provides Tes, coffee, Cold Drinks and of course food. Company is proving lunch without charging any cost. It provides food free of cost to their employee. 3. Transportation Facility: The company provides transport facility to their employee, which pick up the mployee from their home to the company and from company to their home. This facility is for all the employee of the company. As mostly all employee leave at Rajkot city, which is away from the factory. 4. Uniform facility: At the company all employee are provided with the uniform facility. There are different uniform for different people. All the workers are provided a shirt of navy blue and dark blue trouser and the staff member are allotted gray shirt and black trouser. 5. increments:

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A PROJECT REPORT ON ATUL AUTO LTD. The other facility or benefit give to the employee at the Atul Auto Limited is the increment in the salary. On every 1st of april the company makes some increment in the salary of the employee according to their performance and on which level the employee is.

6. Bonus: The company also gives bonus to their employee every year. The rate of bonus is 20 percent. This bonus is distributed from the overall result of the company. 7. Insurance facility: The company is providing three types of the insurance to their employee and worker. The company had taken three types of insurance i.e., from life insurance corporation of India. The other one is related PF department and the third one is general insurance. In first two the life of the employee is no more than we will receive Rs. 62000 no matter of where he died. The third one is general insurance in which if a suffers any permanent disability then he will receive the money. 8. leave facility: The other good facility which company provides is of leave. The entire staff and worker related to production department get leave on Thursday and people related with marketing and finance receives leave on Sunday. Apart from the above leave, company provides 40 leave per year to the staff members and 25 leave per year to the workers. 9. Provident Fund: There is also the scheme of Provident Fund that is given to all the staff and workers of the company. The rate of the contribution is of 12%. That means the company will deduct 12percent of the salary from their employee and will deposit it with the provident fund department. Also the company will contribute 12 percent from its own side. The fund will be paid to the belonging whenever he leaves the company or when he gets retired. 10. pension scheme:

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A PROJECT REPORT ON ATUL AUTO LTD. Even company is running pension scheme for their all employee. It means the employee when gets retired will receive some amount every month as pension. Again this scheme is related with Provident fund Department. 11. Gratuity: The other facility provided by the Atul Auto Limited is of gratuity. Gratuity means a person who retires from the job will get a huge amount at one time.Thecompany gives the contribution for this gratuity and not a single rupee is taken from the employee as premium.

RECRUITMENT AND SELECTION Recruitment Recruitment is very important for an industrial eoncern to have efficient and effective personnel with right quality and at right time and at right place available whenever they are needed or required. Every organization needs employees from time to time because of retirement or promotion, there is always needed of employes is an organization Recruitment is the process of discovering potential applications for ensure or anticipated organization prefers special policy for recruitment of a person. i.e. handicapped minority groups, women, friend and relatives of present employees. Generally or mainly there are two sources of recruitment and they are as below: (1) Internal Source (2) External Source Atul Auto limited understands very well the important of the recruitment. Because if any wrong person is being selected and then the whole company can suffer. So Atul auto limited uses both the sources of the recruitment. 1. internal source: Internal sources are the most obvious sources. These include personnel already on the pay roll of an organization, i.e. its present working force. Whenever any vacancy occurs, Somebody from within the organization is upgraded, Transferred, promoted or sometimes demoted. This source also includes personnel who were once on the company would like to rehire, such as those on leave of absence, those who quit voluntarily, or those on production lay-offs. 2. External Source: JATIN TRIVEDI (MBA marketing), SAURASHTRA UNIVERSITY, RAJKOT.

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A PROJECT REPORT ON ATUL AUTO LTD. External source are those which are not from the internal sources, it includes, new entrants to the labour force, i.e. Young, mostly in experience potential employee the college students; The unemployment – with wide range of kills and abilities; retired experienced persons such as mechanics, machinists, welders, accountants; other not in labour force, such as married women and persons from minority groups. The above were the sources of recruitment, which is adopted by the Atul Auto Limited. Now let us check out the method of the recruitment. There are three recruitment methods classified by the dunn and stephens, and they are direct method, indirect method and the third party methods. Atul Auto Limited has adopted the first two method recruitment i.e. direct method and the indirect method. Let us check both the method one by one.  Direct method: These include sending, traveling recruiters to educational and professional institutions, employee’s contact with public and manned exhibits. One of the widely used direct methods is that of sending of recruiters to colleges and technical schools. Atul auto limited selects the technical person from ITI rajkot. And other persons such as engineer, supervisor from the pending applications.  Indirect method: Indirect method involve mostly advertising in newspaper, on the radio, in trade and professional journals, technical magazines and brochures/advertising in newspapers and /or trade journals and magazines is the most frequently used method. When qualified or experienced personnel are not available from other sources. Senior posts are largely filled by such methods when they cant be filled by promotion from within. At Atul auto limited the vacancies for managers and officers are filled by the advertisement. Selection: The selection procedure is concerned with securing relevant information about an applicant. This information is secured in a number of steps or stages. The objectives of selection process are to determine whether an applicant meets the qualification for a specific job and to choose the applicant who is most likely to perform well in that job. Selection is the long process. Commercing from the preliminary interview of the applicants and ending with contact of employment. The following is the procedures adopeted by the Atul Auto Limited. For the selection process: 1. application bank After the advertisement the candidate are provided with the application blanks. In which they have to fill their information. The application ahs to mention name, address, qualification, work experience, signature and etc. This is also known as fact finder, which helps one in learning about an applicant’s background and life history.

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2. interview: after collecting applications from applicants analysis is being started by the company. Candidate who are found to be suitable and reasonable for the job are called for the interview. A well-conducted interview is taken to explore the facts and get at the attitude of the applicant and his family to the job. Also many other questions are selected for the further procedure. 3. physical Examination After the interview procedure the next step is to make the entire candidate pass through the physical examination. This is a person have to deal with the machines and of course sometimes have to also go through certain atmosphere, so it is necessary that a candidate should be physically strong. 4. psychological testing: After physical examination of candidate, if the candidate is found to be having physically strong enough then company moves to the next step of psychological test of candidate where the company estimates the efficiency of the candidate is tested to know that he would be able to work in different type of conditions or not. 5. reference check The other important matter in selection of candidate is about the different reference given by them. Company use to check out whether the candidate is a good person and have no criminal or bad recorded in past. The reference which company asks should not from the relatives of the candidate but other than it. 6. final selection: After passing through all the barriers the company selects the right candidate for the job. The candidate is informed by any means of communication. 7. Introduction into the company: The candidate when comes to the company for joining he is introduced regarding company is share to him. Even in initial period a buddy is provided assist him to make him know all the departments of the company very well.

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PROMOTION POLICY Promotion means upward advancement of an employee in an organization to another job, which commands pay, better status and higher opportunity, responsibility and authority, better working environment and a higher rank. There are many purposes to promote employees such as increase an employee’s organizational effectiveness and to attract suitable workers for the work. At Atul Auto Limited promotion is not based on seniority but is based on the performance of the staff member as well as of workers. Filling up the form of performance appraisal does the promotion for the manager level and officer. The promotions are decided by the two of directors of the company and one HR consultants from outside of the company, Atul Auto Limited have prepared one form in which all the details such as communication skill, team work and leadership ability, ability to coordinate work, creativity and performance under stress and etc. are printed and are filled up the directors and the HR consultant by their continuous observations. And according promotions are given to the manager and officer level staff. For the promotions of worker there is a different approach of the company. Here a committee has been formed of different departments head for the purpose of promotion. All the department heads of the company observes the work of the worker, his performance and etc. on individual basis and there after promotions are decided and declared. The promotion, which are covered by the Atul Auto Limited in the personnel department, are Transfer Policy, performance appraisal system, wages and salary, grievance handling procedure.

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COMPANY’S WELFARE ACTIVIES The company has adopted and implemented almost all benefits for all its employees as under: 1. Provident Fund & Pension Fund: This Scheme of the government has been adopted and implemented by the company for all its employees w.e.f. 1st May 1995 and Since then the same is very much regular in paying both contributions, employees & employers every month the P.F. Organisation. The employees are provided annual statement (Form no.23) every year showing the position as on 1 st March issued by the employee’s P.F. Organization for industries. The contributions are proportioned as under in the P.F. account, individually for e.g. Employees Share: Employer’s Share PF 12% 12% to Pension Fund 2. Gratuity: The amount under this head “Gratuity” is paid to an employee as per the payment of Gratuity Act, 1972. The perpose for payment under this head is to provide an income to employees to continue his livelihood during his retirement. Under this Act of government, and employee is required to complete first 5 year service. The formula under this act is as under: (Basic Pay * No. of Years of Service * 15)/ 26 = Amt. of Gratuity For e.g: (2000*6*15)/26 = Rs. 6923/- Gratuity 3. LEAVE: The company has made provision for granting leave to an employee with a view to provide rest, to meet his social obligations. At present leave is as under: 1) Staff Member 2) Worker

EL 30 15

CL 10 10

= =

Total 40 Per Annum 25 Per Annum

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A PROJECT REPORT ON ATUL AUTO LTD. CL can be availed maximum for 3 days at a time with prier approval from department head. More than 3 days leave will be considered as EL. 4. GROUP INSURANCE SCHEME OF L.I.C: There is also provision act under the provident fund for group insurance “ Employees deposit linked insurance scheme” – EDLI. Under this scheme a sum up to Rs. 62000/- is paid as an insurance sum to the family of deceased member depending upon his balance amount in the P.F. 5. SOCIAL SECURITY SCHEME: There is also a provision of Insurance under the group gratuity scheme of L.I.C. under this scheme in case of death of an employee, his family (legal nominee gets a sum for the remaining years of service, as if he/she would have put in full service & (up to 58 years of age) alive up to the age of his retirement). The company has opted in the interest of its employees. The company pays premium under this scheme, every year. 6. BONUS: The Company is paying 20% actual bonus every year to all its employees at present. 7. FOOD: The Company provides lunch free of cost to all its employees at the plant. 8. TEA: The Company is providing tea to all its employees free of cost twice in a day. 9. STAFF BUS: The Company has been providing staff bus facilities between Rajkot Shapar factory free of cost to all its employees. 10. BACHELOR ACCOMMODATION: Company is providing bachelor accommodation to the employees who are coming from far and remote place/cities, free of cost. At present about 100 employees have been staying in the Company’s rooms. 11. UNIFORM: To have an identical dress & impression of the company the Company is providing 2 sets of uniform every year to all its employees.

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FINANCE DEPARTMENT

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INTRODUCTION Financial management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. Through out it was branch of economics till 1890. As a separate knowledge of its own and draws heavily on economics for its theoretical concepts even today. Finance is the lifeblood of the organization, this sentence shows the importance of the finance department and its working. Here we discuss the various policy of finance department of Atul Auto Limited and some financial policy adopted by the company and some financial analysis of the Atul Auto Limited. Nowadays, to finance business company has to maintain the financial status at the required level and also has to show financial stability of the company and to get fianance company has to show cash-flow, important ratios, working capital management etc. In Atul Auto Limited finance department headed by single person and authority passes from top to bottom, in a nutshell it is line organization and chief financial officer hold the top position of the finance department. The chart given on next page shows the line authority.

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ORGANISATION STRUCTURE OF FINANCE DEPARTMENT

The given chart clearly shows the responsibility and authority centralized in the single hand i.e. chief financial officer who is responsible for the decision taken by him regard to finance and he is the last who finalize the financial matter, of course with the approval of the chairman.

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ACCOUNTING POLLICY FINANCIAL STATEMENT: Financial statement of Atul Auto limited has been prepared under historical costing convention in accordance with GAP and also follows the guidelines of the companies act 1956. Company generally recognizes significant items of income statement on accrual basis. Fixed assets: Fixed assets are carried at cost of acquisition or erection and relevant expenses are added and then deducting depreciation from that and last value put on statement. Depreciation: Depreciation is provided on fixed asset in accordance with the rates provided in schedule xiv of the companies act 1956 on straight line basis. Research and Development expenses: All the R&D expenses including designs, patterns, prototypes and product launching expenses treated as deferred revenue expenditure and it is written-off in five equal annual installments. Valuation of inventories: (1) raw material (2) Work in progress (3) Finished goods

at cost or neet realizable value whichever is less at estimated cost at cost of net realizable value determined on the major ingredients fitted therein and expenses absorbed,

whichever is less. In valuation of raw material the taxes, paid and transportation cost is to be included.

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A PROJECT REPORT ON ATUL AUTO LTD. Sales: Sales are recorded on dispatch of goods from factory and at net of all taxes paid. Post dated transaction of balance sheet: Material events occurring after the date of balalnce sheet are recognized and are dealt with appropriately in accordance with GAAP.

EXCISE DUTY: Excise duty has been accounted on the basis of payment made in respect of goods cleared and on basis of goods manufactured and lying in bound warehouse through no cleared in accordance with guidance note on accounting for excise duty issued by ICAI FINANCIAL PLANNING: Planning is an essential tool of management and it is referred as most valuable and important when the planning is of finance. Finance planning means to plan the future activities in accordance with financial planner has also responsibility to manage the finance to carry out the future plans and projects, which are designed to maximize the wealth of shareholders. Atul Auto Limited has implemented its expansion plans, this include setting up machinery in order to maximize the production capabilities of three wheelers diesel automobiles, and Atul Auto also carrying project of setting plant of CNG (compressed Natural Gas) driven vehicles and LPG(liquefied petroleum Gas) driven vehicle. This project is appraised by Gujarat Venture limited and Gujarat industrial corporation Limited.

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CAPITAL STRUCTURE Capital structure of company refers to the items in the balance sheet and it is most significant part of financial analysis, capital structure shows us the type of capital invested, its proportion to total capital and the return of each type of capital, capital invested in business is called capitalization in commercial jargon, Capital structure can be of three types. (1) more debt and less equity (2) debt and equity in proportion i.e. 50 percent debt and 50 percent equity (3) More equity and less debt. Atul Auto Limited has third type of Capital structure and this is the trend which is now a days prevailing in the industry and big giants of corporate are going for zero debt company. Zero debt because it gives them highest returns in comparison with the other company of the same industry, moreover zero debt company easily gets finance whenever required. PARTICULARS

MARCH 2005

MARCH 2004

Shareholder’s fund Share capital Reserves and surpluses

55844050 144149373

55844050 114024310

Loan funds Secured loans Un-secured Loans

112784313 57813

54158315 2089702

As we above said company is having third type of capital structure i.e. more equity and less debt, the figure in the above table represent the same, as on 31st march 2005 , in Atul Auto Limited the Proportion of the equity to capital was 64%

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MANAGEMENT OF FIXED ASSETS The fixed assets of company are rigid in nature and it takes much time to replace the fixed asset and converts it. So as far as decision regarding fixed assets is concerned the decision is taken by capital expenditure planning passes through five stages and these five stages make available some of the important things about the expenditure. These stages are: (1) (2) (3) (4) (5)

identification of investment opportunity Development of forecast or cost and benefit Evolution of net benefits Authorization for progressing and spending capital expenditure. Control of capital projects.

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SOME IMPORTANT RATIOS

Ratios are used as a yardstick for evaluating the financial condition and performance of a firm. Analysis and interpretation of various accounting ratios gives a skilled and experienced analyst, a better understanding of financial condition and performance of the firm than what he could have obtain only through a perusal of financial statements.

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NET PROFIT RATIO Net operating profit Net sales

* 100

Year 2003-04

Year 204-05

31932546 * 100 67096960

44385565 989129942

= 4.76%

* 100

=4.49%

The ratio indicates the efficiency of the company in managing the business affairs. An increase in this ratio over the period indicates improvement in the operational efficiency of the business. This ratio is a vital measure of profitability. In the previous year company’s net profit ratio is higher than the this year so that we assume that company’s operational efficiency decrease in this fiscal year. So management needs to increase the profitability of the company and also overall percentage is very less.

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EARNING PER SHARE

PROFIT AFTER TAX AND PREFERENCE DIVIDEND NO. OF EQUITY SHARES YEAR 2003-04 13111389 5351520 =2.45

2004-05 30125062 5351520 =2.63

The earning per share (EPS) helps in determining the market price of the equity share of the company and in estimating company’s capacity to pay the dividend. A comparison of EPS of two companies will also help in deciding whether the company is using capital effectively or not. In the previous year company’s earning per share is less than the years so that we assume that company’s owner have more assets than the previous year. So equity holders have better options to purchase the new share of the company. In this year EPS is increase more than 125%

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RETURN ON CAPITAL EMPLOYED Earning before interest and tax Total capital employed

*100

YEAR 2003-04 31932456 226116377 = 14.12%

*100

44385565*100 312835548 =14.19%

Return on capital employed measures the profit earns by a firm on investing a unit of capital. Company can survive only when the return on capital employed is more than the cost of capital employed in business. This ratio indicates that company is earning good percentage of the profit. The earning is higher than the current market interest rate.

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CURRENT RATIO currnet assets current liabilities Year 2003-04 16914633 37070840 =4.56

year 2004-05 202827813 55061055 =3.68

An ideal current ration is 2 is considered as a safe margin of solvency due to the fact that if the current assets are reduced to half than also the creditors will be able to get their payments in full. A very high current ratio is also not desirable since it means less efficient use of fund. High current ratio means excessive dependence on long term resources. In Atul Auto Limited this ratio is 3.68, which is very high. This will result in considerably lowering down the profitability, as long term liabilities are very costly than current liabilities.

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DEBT-EQUITY RATIO External equities Internal Equities Year 2003-04 93318857 169868360 = 0.55

2004-05 167903180 199993423 = 0.84

This ratio indicates the proportion of owner’s stake in the business and the extent to which the firm depends upon outsiders. Excessive liabilities tend to cause insolvency. The ratio provides a margin of safety to the creditors. The investor may take Debt-Equity ratio as quite satisfactory if shareholder’s Funds are equal to borrowed funds. Here, in atul Auto Limited case, it is near to 0.8. So, the creditors of the company are very safe. Also because of there is heavy investment in fixed assets and less on assured return on investment.

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