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INTRODUCTION
India is characterized by all over expanding population; this growth coupled with rapid Industrialization has created huge demand for cargo vehicles, also for passenger vehicles. Diesel vehicles have been gaining more popularity on account of price advantage enjoyed by diesel cost as compare at petrol cost. A listed Large Scale Public Ltd. Company ATUL AUTO Ltd. is located at Shapar Industrial Zone, which is a notified backward area by State Government eligible for several benefits. It is 18 km. away from Rajkot city, on National Highway 8-B, having Land of 5,00,000 sq.ft. ATUL AUTO Ltd. has so far invested more than Rs. 300 million in manufacturing unit with capacity of 10,000 vehicles per annum. About 300 workers are employed in factory which is equipped with most modern plant & machinery. The manufacturing units are fully equipped with CNC machine shop, test house etc. Most of components are produced in-house to maintain strict quality control. Promoted by Mr. Jayantibhai Chandra who is Chairman and Managing Director of ATUL AUTO Ltd. It has become professionally managed organized sector company with highly qualified and experienced team of managers and staff to further the growth of companys business. ATUL AUTO Ltd. manufactures and market ATUL SHAKTI Diesel 3wheeler vehicles are very popular among farmers and rickshaw owners in Gujarat on account of invariably high standards of quality, expert workmanship and high re-sale value. ATUL SHAKTI diesel 3-wheeler vehicles are available in different models and variants like Load carrier, Pick-up van, Delivery van, Bottle Carrier etc. The different models are ideal to meet the urban and rural market demand. As on today approximately 1,30,000 vehicles are on Indian roads manufactured by ATUL AUTO Ltd. ATUL AUTO Ltd. is presently marketing its product in Gujarat, Andhra Pradesh, Rajasthan, Maharashtra, Haryana through its existing dealer-network of 70 plus. The company plans to introduce its vehicles to other states like Punjab, Uttar Pradesh etc. ATUL AUTO Ltd. has exported its product to number of Asian and African countries in the past.

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ATUL SHAKTI diesel 3-wheeler vehicles have unique features like floor gear-shift, electrical starter, powerful engine, differential, two head light etc. These vehicles are ideal to carry a load up to 1 tone at a cost of 40 paisa per kilometer (approximately). The vehicle owners of 600 net per day, and thus these vehicles have proved themselves to be the best means of self employment. ATUL SHAKTI Super Earner, Everyday Winner

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Company Profile (a) (b)

Name of Company Corporate Office Address : : ATUL AUTO LTD. Jimmy Tower, Opp. Swaminarayan Gurukul, Gondal Road, RAJKOT 360 002. Survey No. 86, Plot No. 1 to 4, N. H. 8-B, Tal.: Kotda Sangani, Shapar (Veraval), RAJKOT 360 004. 1st May 1992 1st May 1992 Automobiles (Three Wheelers) 1800 Units (Monthly) Joint Stock Company Large Scale Unit Shri J. J. Chandra Shri Atul J. Chandra Shri Mahendra Patel.

(c)

Registered Office Address

(d) (e) (f) (g) (h) (i) (j)

Year of Establishment Year of Commencement Main Products Production Capacity Form of Organization Size of Unit Names of Promoters

: : : : : : :

(k)

Board of Directors Shri J. J. Chandra Shri N. J. Chandra Shri M. J. Patel Shri R. H. Druva Shri R. S. Kukreja Shri S. T. Kaneria Auditors

: : : : : : : : : : : Chairman & Managing Director Whole Time Director Joint Managing Director Director Director Director M/s. Maharishi & Co. Chartered Accountants JAMNAGAR. 10 acres. State Bank of India ATUL SHAKTI

(l)

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

HISTORY AND DEVELOPMENT

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Each and every empire or business has its own story to tell history of unit is a mirror of its image building. Thats why I am drawing a verbal picture of these units past in following lines: The company originally started activities in Jamnagar way back in 1960 as a partnership firm, producing small rural Vehicles. In the year 1986 a simple man but having superb knowledge, skill and experience of automobile had started this company, he is Mr. Jayantibhai J. Chandra. Shri Chandras dream of 1960s and the maiden venture became a successful reality. The birth of this company was taken place at Jamnagar with the name of ATUL AUTO JAM. Pvt. Ltd. After its establishment within short period of time the management of the company found that Jamnagar is not a proper market. Afterwards they started new plant in Pune (Maharashtra) but again same kind of problem arose. By analyzing the market segment and after potential thinking over it, in 1991 company set up new plant at Shapar (Veraval), in industrial colony located near Rajkot, for manufacturing new range of Diesel 3-wheelers, i.e. Passenger Rickshaws of six persons capacity and pickup van of 750 k.g. pay load useful in urban area. The company had made rapid development in producing and marketing of Diesel Auto Rickshaw. In the beginning stage, they produce only one product that is Khushboo Road Master, but there after they produced many type of Diesel Vehicle. At present this unit is at No. 1 Diesel Rickshaw company in whole Gujarat Today the Atul-Shakti brand of Diesel 3-Wheeler are market leaders, a recognized force in Kutch, Saurashtra and Gujarat. The companys vehicles have also found excellent response from the African countries of Kenya, Uganda, Tanzania, Sudan and Egypt. ATUL AUTO Ltd. was a private limited company when it was established in 1991. But after 1994 it was converted into a public limited company according to companys Act 1956. This proves its great financial position. As on today approximately 1,30,000 vehicles are on Indian roads manufactured by ATUL AUTO LIMITED. It was ATUL AUTO Ltd. who introduced Diesel Carrier Auto Rickshaw for the first time in Gujarat.

SIZE OF ORGANISATION

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The business Organization may be small size, medium size or big size. Size of Industrial unit can be fixed on the basis of workers, capital investment, quality of production, sales turnover etc. If the capital invested by the company is less than 3 crores it is known as Small Scale Industry and if the capital invested by the company is between 3 to 5 crores it is known as Medium Scale Industry and if the Capital Invested is more than 5 crores it is known as Large Scale Industry. Investment in ATUL AUTO Ltd. is more than 5 crores, so it is a Large Scale Industry.

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FORM OF ORGANIZATION
INTRODUCTION: There are many forms of organization varying from Sole Proprietorship, Partnership, Private Limited Company, Public Limited Company, Joint Sector, Cooperative Societies etc. ATUL AUTO Ltd. is a Public Limited Company. PUBLIC LIMITED COMPANY: According to Companys Act, 1956, A Company in which there are minimum 7 members and having no limits for maximum numbers is called a public Limited Company. ATUL AUTO LIMITED AS A PUBLIC LIMITED COMPANY (1) Voluntary Association:When people join the group with the objective of earning of profit or any specific objective without any pressure is termed as voluntary association. (2) Artificial Person:A company is a creation of law. A separate legal entity or personality is a unique feature of a company which distinguishes it from a sole trader or a firm. It has no body, no soul, and no conscience, still it is in a position to exist. ATUL AUTO Ltd. was promoted by Mr. J.J. Chandra. (3) Common Seal:A company not being a natural person cannot sign documents for itself. So it has a device in the form of common seal on which its name is engraved and this common seal works as a signature. When it is affixed by a board on any documents, it has to be witnessed by two directors. ATUL AUTO Ltd. has its common seal.

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(4) Limited Liability:The privilege of limited liability bestowed on all registered trading companies is a born to the Joint Stock enterprise. A members liability is usually limited by face value of shares and if he owns a fully paid share, he shall not have any future liability at all. In ATUL AUTO Ltd. shareholders have limited liability. (5) Perpetual Existence:As company is an artificial person enjoying individually. It is not terminable by death of any of its shareholders or directors. Once a company is formed it cannot be dissolved until law recognizes it and till it is wound up. As per the Act. ATUL AUTO Ltd. is also enjoying same thing. If any of its shareholders or directors will pass away company shall not come to a stand still it will work

INFRASTRUCTURE AVAILABLE WITH ATUL AUTO LTD. -8-

A) Land and Building:The companys main manufacturing unit is located at Shapar Industrial Zone, which is a notified backward area by State Government eligible for several benefits. It is 18 kms. Away from Rajkot city, on National Highway 8-B, having land of 5, 00,000 sq. The existing constructed factory area is of 1, 45,000 sq. ft. Company can also acquire more land as per the need of new project being identified. B) Plant and Machinery:The manufacturing units and fully equipped with CNC machine shop, fabrication shop, assembly line, paint shop, test house etc. with modern advanced equipment and machinery. All the critical components are being manufactured inhouse except Engines and Tyres. Manufacturing facilities are most versatile and can undertake any precision job. C) Inspection, Quality and P.D.I.:Company is having fully equipped quality assurance department with sophisticated facilities. Company is in the process to acquire ISO 9001 in the near future.

MANAGERIAL TEAM
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Who are Promoters? Person who had the idea to the establish company, those who make the prepreparations for it and take personal responsibility for it are called Promoters. Promoters, brings a company into existence on their own imagination, they find out new business opportunities, examine their feasibility and if found practical, they establish a company through proper co-ordination of the required capital, materials and manpower. Mr. J. J. Chandra having superb knowledge, skill and experience of automobile is the Promoter of ATUL AUTO Ltd. Board of Directors and Managing Team

BOARD OF DIRECTORS Mr. Chandra J.J. Mr. Jogalekar Shriharsh S. Mr. Chandra Bharat J. Mr. Patel Mahendra J. Mr. Dhruva Rajesh H. Mr. Kukreja Rajendra S. Chairman & Managing Director Vice Chairman Whole time Director Executive Director Director Director

AUDITORS M/s. PUROHIT & Co. Chartered Accountant

BANKERS
State Bank of India (SBI) Citizen Co-operative Bank Ltd. Laxmi Vilas Bank Ltd. State Bank of Saurashtra (SBS)

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ORGANISATIONAL STRUCTURE An Organizational Structure is graphic means or a record depicting vividly the formal organizational structure and shows the formal superior subordinate relationships. An organizational structure is a blue print of company organizational, its function, lines of authority and key positions. It shows who supervises and controls whom and how the various units are interrelated.

Chairman

Board of Director

Marketing Head

Production Head Line in charge Line inspector Operator

Quality Control Head

HR Head

Finance head

Technical Staff

HR Executive

Regular Marketing

Development Marketing

Finance Officer

Account Officer

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LOCATION
Location factors are crucial for profit maximization; therefore, it is inevitable for every industrialist to give full consideration to the suitable location of the enterprise. An entrepreneur must choose and ideal plant location at the time of launching the enterprise. Thus location determines to a great extent, the survival as well as prosperity of a business unit in a free market company. Optimum location factors are expected to give lowest unit cost of production as well as of distribution. MEANING:Location means Selection of sight for establishment of industries where the cost of production is the lowest at the time of their establishment. FACTORS:To select SHAPAR only as a location there arose many questions. The company was established in Jamnagar. The management of company found that Jamnagar was not proper market, after words they started new plant in Pune (Maharashtra) but again same kind of problem arose and at last by analyzing the market segment, and after potential thinking over it they set up a new plant at Shapar. Following are the factors to select Shapar as a Location: (1) Availability of Raw Materials:Raw materials are very important for an industry to manufacture different products. They play very vital role in every industry entrepreneur try to establish or locate industry where raw material is available freely or easily. Raw materials used in ATUL AUTO Ltd. are cast steels, iron, engines, accessories, color etc. (2) Nearness to Market:Quickness in marketing actions can be ensured by being close to the market. Showing down of deliveries can be avoided when plant is located near the market. Large number of products produced by ATUL AUTO Ltd. is sold in Saurashtra region and in state of Gujarat, Rajasthan and Maharashtra.

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(3) Availability of Labour:To start any industry, workers or laborers are needed, if laborers are available than it would be good location otherwise it would be expensive. If cost of labor is less, cost of production will be less. ATUL AUTO Ltd. is located in Shapar near Rajkot from where it gets labor at cheaper rate. (4) Transportation:Transportation facility is the basic necessity for each and every industry to bring in raw materials and to supply finished goods to market. Usually there are main four modes to transportation i.e. Road, Sea-route, which connect to all parts of Saurashtra region and State of Gujarat, Rajasthan and Maharashtra. (5) Finance:Finance is major factor required by each and every organization, for establishment, expansion and development. The availability of Capital at cheaper rate of interest is a dominating factor influencing industrial production. The ATUL AUTO Ltd. has not faced any difficulties due to lack of finance, it has a separate Finance Department. It has raised its capital from various financial institution and banks. (6) Availability of Power Sources and Water:In modern age industry could not work without Power Factor. Power is necessity for todays age industry. Electricity allows greater freedom of choice for location. Adequate and regularity of power supply are important. Water resources are required for processing, sanitary and drinking purpose. (7) Site and Services:Selection of a site and services affects the location of an industry. To a certain extent Government of India has declared some of the place all over India as backward areas. Where they provide entrepreneur incentives like subsidies, grants, loans with less interest, supply of power at cheaper rates etc. So some entrepreneurs are attracted by such backward areas. ATUL AUTO Ltd. has set up its plant in

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Shapar (Veraval) 18 kms. away by State Government eligible for several benefits. (8) Latest Technology:In todays modern world to stand, cost should be less and production should be large and for that there should be latest technology. ATUL AUTO Ltd. has adopted latest technology in production. All its machines are according to latest trends. ATUL AUTO Ltd. was set up after taking into consideration all above location factors. None of the factor has been ignored. Equal importance has been given to all factors right from the stage of procurement of raw material to the stage of latest technology. ATUL AUTO Ltd. has been benefited due to its location.

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TIME KEEPING SYSTEM

Man can work for some limited time, he cannot work for 24 hrs. but industries are running round the clock. So there are some adjustments made between the workers which are known as the shifts. The time keeping system at ATUL AUTO Ltd. is situated at the entrance of the factory premises. At ATUL AUTO Ltd. the system is fully computerized which to makes work very easy and comfortable. It has a set a punch-card system for maintaining attendance of the employees at the entrance. Card is to be affixed in the punching machine and the machine records time, date, shifts, months etc. The Assistant of Personnel Department maintains the record of attendance on the daily basis. These details of daily attendance are recorded in a register which is sent to the Executive Director on a Regular basis for verification. Time keeping system at ATUL AUTO Ltd. Session First Session Lunch Second Session Incentive Time Time 9:00 am to 1:00 pm 1:00 pm to 1:30 pm 1:30 pm to 5:30 pm 6:00 pm to 9:00 pm

For manufacturing department there is holiday on Wednesday and for Administrative department there is holiday on Sunday.

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CONTRIBUTION TO THE INDUSTRY

Contribution of the unit to the industry means what percentage of contribution is given by the particular unit in the product. The main product of ATUL AUTO Ltd. is diesel 3 wheeler vehicles. It has applied modernized style and latest technology in its production process which results into large production. ATUL AUTO Ltd. plays a vital role by contributing 80% of total diesel three wheelers vehicles in Saurashtra region. These products have a very good potential in Gujarat and in Indian market. Ultimately we can say that ATUL AUTO Ltd. is occupying a significant position among the industries producing diesel 3-wheeler vehicles not only in Saurashtra but also in Gujarat, Maharashtra, Andhra Pradesh, Haryana, Rajasthan and other states of India. As on today approximately 1,30,000 vehicles are on India roads manufactured by ATUL AUTO Ltd.

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INTRODUCTION
Research study is a study of some specific problem of any individual or group during his/her research period. Research problem in general refers to some difficulty which researcher experience in the context of either theoretical or practical situation. The researcher may want to obtain the solution for same. In the research study there is some individual, group or an organization which has some difficulty or a problem. Research study cannot be made if anyone is found out without having any problem. In the research study, there are some objectives to be achieved on the part if researcher. DEFINITION: Redman & Mory defines research study as systemized efforts to get new knowledge According to Clifford Woody research study comprises defining & redefining problems, formulation hypothesis or suggested solutions, collecting, organizing & evaluating data, making deduction & researching conclusion & at last carefully resting the conclusion to determine whether they fit the formulating hypothesis. Deslesinger & M.stephenson in the encyclopaedia of social defines research as thee manipulation of things, concept or symbol for generalizing to extend, correct or verify knowledge which aids in construction of theory or the practice of an art.

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RESEARCH PROBLEM
Research problem is a problem which researcher faces in advance when he/she goes to research study. The study includes analysis of group, individual or organization. The researcher will decide that which point he/she want to make research because the particular individual, group or organization doesnt know whether they are having any problem or not. When researcher make his/ her study analysis the problem and defines the solution then & them we can know that the particular problem was existing with the group, individual or organization. We can here say that research problem exists if the following conditions are made. 1) There must be a problem facing either by individual, group or nay firm. 2) There must be some objectives to be attained. 3) There must be doubt in the mind of researcher with regard to selection of alternatives. 4) There must be two possible outcomes. 5) The course of action available should provide the chance of obtaining the objectives. 6) The problem should neither be very general nor very specific. 7) The problem should be solvable. My problem in this research study is financial performance of ATUL AUTO LTD. On the basis of the ratio analysis. I want to study whether the company is profitable in terms of ratio analysis or not.

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RESEARCH OBJECTIVES
In every research study, there are some objectives to be achieved. Researcher conducts research study to solve any specific problem & there by making conclusion & getting the answer of that particular problem. Research objectives may be different as per research study researcher. In my research study, I have made my efforts to get out following objectives. 1) To know financial performance of ATUL AUTO LTD. On the basis of ratio analysis 2) Company is having sound position or not in terms of all ratio 3) Return company provides to its share holders 4) Utilization of inventory and Borrowed fund for expansion activities 5) To know the profitability of company 6) The interest burden the company is having

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IMPORTANCE RESEARCH STUDY

The relevance of the research study is as under. (1) Research study is needed because it facilities smooth sailing of various research operations. There by making research as efficient as possible giving maximum information with minimum expenditure of time, efforts & money. (2) Research study stands for advance planning of the methods to be adopted for collecting relevant data & techniques to be used in analysis keeping in view that the objectives of research problem & availability of time, staff & money. (3) Research study is a foundation for solving out any specify problem the group, individuals are having & reaching to appropriate conclusion. (4) Research study helps the researcher to organize his/her ideas in a form where by it will be possible for him/her to look for inadequacy. (5) Research study provides a blue print for collection, measurement & analysis of data. It includes what the researcher will do starting with the hypothesis writing, its practical implication & the final analysis of data. (6) A good research study helps the researcher in gathering maximum information within a minimum time & provided tools & techniques to solve the specific problem there by saving time, money & energy.

METHODS OF DATA COLLECTION

Data collection is an important source for researcher for getting out information for the completion of research study. Every researcher when goes for the research study needs some information to collect facts & figure to complete research study. This information which researcher is going to collect should be of reliable & accurate because without such kind of information research study cannot come to conclusion. Data should be properly arranged so that the researcher should get an idea to solve out the specific problem of research study by using=such data. If data is not

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reliable, accurate then it will not helps the researcher to accomplishing in the research study & meaningful conclusion cannot be achieved. For collecting the information there are mainly two methods of the data collection which are as under. 1) Primary Methods. 2) Secondary methods. This both the methods are of very important in its nature. They show the different sources to researcher to get out needed information. The both the methods are presented in the form of chart & also the sources which they include for helping put researcher in getting information & reaching & arriving at the meaningful conclusion. 1) Primary method:In this method the questionnaire is prepared on the specific subject & the respondent is asked to fill up questionnaire & on the basis of that meaningful conclusion is made. (B) face to face conversations:In this type of method researcher goes to the respondents & asked them questions regarding the problem which he/she faces & going to solve it. (C) Personal interviews:In this type of method, one export person is appointed who has a vast knowledge of different sectors. Respondents are asked to come there & asked to give answer of the questions which the export person asks to them. (D) Panel interviews:In this method, two or more than two export persons are appointed & respondents are asked to come & are asked to give answer of questions which those people ask (2) Secondary method:(A) internet:-

(A) questionnaire:-

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Internet in todays world is more powerful & useful tool for getting out information from the corner of world. A researcher can search on any topic & can get information from the world. Internet is a vital source of information for researcher. Researcher can get information by using different search engines like Google, Yahoo, my MSN search etc... (B) Newspaper:Newspaper is a primary source of information. In every days life newspaper can be considered as useful & easily accessible source of information. Even the poor man can easily get access to the newspaper & come to know about daily incidents happening around him/her. (C) web-sites:Websites are also considered as important source of information. A researcher can click on particular web-sites & search the topic & can get the information needed by him/her. (D) Magazines:Magazines are also important & accessible source like newspaper. There are so many magazines published on various topics. A researcher can go the market & buy the magazines & get the information needed by him/her. (E) Company literature:Company literature can be considered as most useful tool to get information. Every company annually or semi annually published various kinds of audit reports & broachers. Researcher can easily get thee information by using such tool. (1) Sampling design:It is a method of collection & organizing data in proper form. (A) Probability/non probability sampling:Probability sampling is a method by which research used the probability to derive the information. This method is also known as chance sampling. In nonprobability sampling each of the unit is weighted equally that means all units are given equal chance. (B) Sampling unit:Sampling unit is a group of any individuals, company or households. It is a collection of information with the help of population. Annual reports of 5 years and other financial information

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(C) Sampling size:Sampling size is a no. of sample to be studied by the researcher in research study. Last 5 years

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INTRODUCTION to PRODUCTION DEPARTMENT

Production is the basic activity of the all-industrial units. All other activities revolve around this activity. The end product of the production activities is the creation of the goods and services for the satisfaction of human wants. Various persons have given definition of production importance definition are as under; Production is a process by which goods and services are created. - E.S. Buffa. 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 managements 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.

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Atul auto produce 60 Rickshaws 360 Rickshaws 1500 Rickshaws 18000 Rickshaws Per Day Per Week Per month Per Year

ORGANIZATION STRUCTURE

BOD BOD

MD MD ED ED GM GM PurchaseManager Manager Purchase PlanningEngineers Engineers Planning Sr.Eng Eng.Fabrication .Fabrication Sr. Sr.Eng. Eng.Testing Testing Sr. Sr.Eng. Eng.QC QC Sr. Sr.Eng. Eng.Design Design Sr. Sr.Eng. Eng.Assembly Assembly Sr. Workers Workers ProductionManager Manager Production

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PRODUCT PROFILE

Typesof of Types Product Product

GoodsCarries Carries Goods
PickupVan Van Pickup Standard Standard DeliveryVan Van Delivery PickupVan VanHigh High Pickup Deck Deck PickVan VanStandard Standard Pick CNG CNG PickVan VanHigh High Pick DeckCNG CNG Deck

Passenger Passenger Carries Carries

SpecialCarries Carries Special

ChickenCarrier Carrier Chicken

3+1Passenger Passenger 3+1

4+1Passenger Passenger 4+1

Tipper Tipper WaterTank Tank Water Carrier Carrier SoftTank TankCarrier Carrier Soft

6+1Passenger Passenger 6+1

CNGPassenger Passenger CNG

LPGPassenger Passenger LPG

MobileShop Shop Mobile

Hopper Hopper

Bio- -Hazard Hazard Bio

VegetableVending Vending Vegetable

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PRODUCTION PROCESS

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7. Electrical Assembly

1. Raw Material

6. Painting

2. Chassis Fabrication

5. Bolting

3. Final Chassis

4. Assembling

PRODUCTION PROCESS:

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The company ATUL AUTO LIMITED has very easy and simple production procedure. The production procedure is divided in 7 important stages. This must be followed chronically. The stages are as given below,

Raw Material:
The first stage in production procedure is acquisition of Raw Material. It is

the stage on which other stages of process depend. If there is any disturbance in supply of Raw Material, the entire process gets disturbed. 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 Ahmadabad by the company. The raw material is stored in storeroom. There are 3 initial Raw Material, 1. Metal Pipes 2. Metal Sheets 3. Diesel Engine (Grieves India Ltd.)

There are some other raw materials also Wires Front Glass Types Batteries (Pestrolite Ltd.)

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.

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Fabrication:

This is the second stage in process. It is divided into two parts_

Fabrication of chassis & front show:

It is 1st part of fabrication. Here metal pipes and sheets bended with the help

of machines, as per the model, then after it is sent to the welding dept. there by welding, from metal pipes chassis is made and also metal sheets are welded & front show is prepared.

Fabrication of Gearbox:

This is another part of fabrication. Here fabrication of gearbox id done by CNC (Computer Numerical Control) & NC (Numerical Control) machine.

sub stages.

Painting:

This is third stage in production procedure. Here this stage is again divided in three

1.
are available.

PAINT:

Here painting show is done there painting is done by spray machine. Many colours

2.

VACCUME:

After completing the painting stuff Vacuumed stage comes. Here with the help of a Vacuumed machine the extra colour is removed from the chassis and front show.

3.

HEAT:

This is last sub stage of painting dept. here is provided to the chassis and front show. Here the temperature of furnish is 100o C.

Assembling:
This is the fourth stage. This is the stage where all the part is assembled with

chassis and front show except body. Here engine and gearbox are assembled and fixed with chassis & front show. Then other things are also made. The performance of engine and gearbox is measured before it is assembled.

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This is the most important stage of the production procedure.

Body Fitting:
After assembling the engine, handle etc. the next stage comes Body Fitting.

Here body is fixed with the chassis and front who. But it depends on type of product. If it is passenger van then seats and roof are fixed. If it is delivery van or pick-up carrier then only metal sheet body is fixed as per the demand of customer. The driver seat is also fixed here. This is the stage where the vehicle is provided a definite look. It is the step where it takes particular ship. After completion of this stage we can classify that whether it is a passenger van, delivery van or pick-up carrier.

Pre-delivery Inspection:
This is the sixth step in production procedure. In this stage pre-delivery

inspection is made. Here the performance of the vehicle is measured whether it is as per the standard or not. You can say it is a formal stage because after selling it, if there is any problem with the performance, it affects the reputation of company.

Total Inspection:
This is the seventh and last stage in production process. This stage is same as

6th stage. But there is only one difference that, in sixth stage only performance inspections made while here there the total inspection is made. Here every part of vehicle passes through a keen and deep inspection. If any fault is found then it is sent to technical dept. but if no-fault is fount then it is sent to the show room with OK mark. With the completion of these even stages, the production procedure of ATUL AUTO LIMITED completes

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INTRODUCTION to MARKETING DEPARTMENT

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." 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." In Atul auto, the major work of marketing department is promoting product and minor work of marketing department are after sales service & spares of product. Marketing department work begins after complication of production because without

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product marketing department cant do marketing once product establish after work of marketing department are taken place. Atul auto is doing marketing domestically not globally. The USP of Atul auto is its PRODUCT. Atul auto has a phenomenal marketing department which work on consumer query and give favourable response to consumer. Atul auto has a good marketing department which gives boosting to its product with the help of campaign and advertisement. So, with the help of proper marketing department product reach at zenith. So, with the help of above statement we can make out that what is the significant of marketing department in the organization.

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, and firms must possess a detailed, objective understanding of their own business and the market in which they operate. 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 - 35 -

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 conduct periodic brand audits to assess the strength of its brands and sources of brand equity. 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.

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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.

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ORGANIZATION STRUCTURE

GM

DGM

Sr. Manager

Manager

Zonal Manager

Regional Manager

Sr.Egineer

Sr.Officer

Jr.Engineer

Jr.officer

Assistance

Assistance

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MARKET SEGMENTATION
Market segmentation is an act of identifying and outlining the different group of buyers. It is combination of two wards i.e. Market refers to the buyers or customers and segmentation refers to the act of dividing them. The basic purpose to segment market is to survey every customer effectively.

The company ATUL AUTO LIMITED has segmented their market in to two; Urban Market. Rural Market.

In urban market there is more demand for load currier that passenger van while in rural market there is more demand for passenger van than load currier.

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. Marketing strategy of Atul auto is quite bizarre then the other private players they are not only put emphasis on promotion but also spare and after sales service. Atul auto marketing strategy is completely in boundary they are only doing marketing in domestically area. So Atul auto is not following current trend of marketing. Atul auto put emphasis on good and maintenance less product. Its product its USP and feature of Atul auto which is also bizarre then the other private players. - 39 -

Atul auto product price is also less then the other private players. Atul auto also give hard competition to their competitors with the help of their Product, Price, Features, Spares and after sales service. Marketing department of Atul auto is very brainchild. Marketing department is also doing campaign as well as advertisement in Newspaper and magazine. Marketing department is one of the most significant departments in Atul auto and with the help of proper marketing strategy Atul auto product reach at zenith. Marketing department has to develop a distinct marketing strategy which give phenomenal success to companys product with in a desirable time period. Marketing strategy put emphasis on not only excellent but also juxtaposes parts of product.

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INTRODUTION TO HRM
Human resource department is concerned with all aspect of managing of human resources of an organization. Especially personnel management involves determining the organization resources need and recruiting and selecting the best available employees. The company has taken effective steps for recruiting of key personnel required by the provision of section-217 of the companys Act 1956 because without the help of effective work force company cant progress. The Human resource department is concerned with recruitment, selection, training, job-description, promotion, transfer, time keeping system etc. this is the functions of personnel department. The human resource department handles the area of recruitment arranging a planning of manpower, training & development program, job rotation and other activities. It is primarily concerned with men power resources or inputs. It is planning, organization, staffing, directing and controlling manpower in order to contribute individual and social goal to the business organization 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. In Atul auto the work of HR department is multi-tasking as because rest of department work is within the boundary but the work of HR department is boundary less in Atul auto. All department work is related to their department but the work of HR department is not related to his department they have to handle many kind of things E.g. Wages, Salary, Dispute, Grievances, HR planning, Manpower Search, Induction, Welfare, Training, Development, Selection etc. If employees are not satisfied with employee welfare & development they cannot give excellent result in terms of production, and the work of HR department is to satisfy the company employees and handle the dispute and grievances in such way that they can give superb output to company. So, from the above matter we come to know that the work of HR department is versatile and we can surely says that the HR department folks are bona fide backbone of any company.

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1. Working Hours: 9:00 am to 1:00 pm 1:00 pm to 1:30 pm break 1:30 pm to 5:30 pm Wednesday is off-day for production and personnel department. While Sunday is off for Marketing and finance Department.

During my industrial training period at Atul Auto Limited, I found that there are limited staffs and each person working in this unit is quite satisfied with their work and with the company.

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ORGANIZATION STRUCTURE

CMD

JMD

Manager (HR)

Sr. Officer

Jr. Officer

Bus & Car Driver

Time Keeper

Receptionist

Peon

Guard

Other Employees

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- 45 -

INTRODUCTION
Financial management is that managerial activity which is concerned with the planning and controlling of the firms 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. Undoubtedly money occupies a key position in the capitalistic economy of the modern age one of the most important function of the top management is to raise finance at a right quantity and also to use it most effectively in fact this function constitutes the care of financial management. Money is the like blood of modern business. Money is requires to purchase expansive machine and also for day to day expanses on raw-materials labour operational and administrative needs of business execution of expansion and modernization programs are not possible without adequate finance. Financial management is concerned mainly with such matter as how of business corporation raises its finance and how it market use of that. -Hoagland ATUL AUTO LIMITED understands the importance of financial management and due affection is given to all financial activities and decisions regarding financial matter are taken with almost care. Today the company enjoys very sound financial position thanks to the directors of the company who has taken right decision with proper forecasting. The industries have a separated department which taken care of all the financial matters. 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 finance 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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ORGANIZATION CHART

Board of Directors

General Manager

Dept. General Manager

Manager

Sr.Officer

Jr.Officer

Sr.Assistant

Jr.Officer

Clerk

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SOURCES OF FINANCE
Finance is the life blood of business. Funds have to be procedure from different sources such as rising of capital through new issues, bank borrowings, term loans from finance institutions, sales of debentures and so on. Business house have sell on credit and on the other hand it has to pay expenses of business in cash. There are many different ways to procure shot term and long term loans. Atul Auto Ltd. has adopted very simple way to procure both short and long term funds.

LONG TERM FUNDS:

For long term funds, Atul Auto Ltd. depends on the retained profits, long term loan from bank and mainly on the equity capital.

SHORT TERM FUNDS:

The objective behind procurement of short term fund is to meet day-to-day business needs as working capital. Short term fund is more important as far as dayto-day business in concern. Atul Auto Ltd. satisfies its needs of short term funds through short term loans from bank and other financial instruction.

CAPITAL BUDGETING
Capital budgeting is a process of making decision regarding loan term investment infixed asset, such as land building, machinery or furniture, which is not meant for sales. A capital expenditure involves a huge investment in fixed assets. Capital budgeting decisions are to paramount importance in financial decision making. The system of capital budgeting is likely to produce benefits over a period of time longer than one year. These benefits may be either in the form of increased revenues or reduces costs. There are various techniques or proposals, Atul Auto Ltd. has chosen pay back method for capital budgeting purpose implementing expansion loan. This expansion loan includes setting up additional capacity to manufacture diesel three wheelers Auto rickshaw; pick up van and CNG auto rickshaw.

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MANAGEMENT OF WORKING CAPITAL

Working capital is defined as the excess of current assets over current liabilities. Working capital is that part of capital which is required to meet the dayto-day needs in running the business. It is also known as revolving or circulating capital. Working capital management is significant in financial management due to the fact that it plays a pivotal role in keeping the wheels of business enterprise running. Shortage of funds for working capital has caused many businesses to fail or has retarded their growth. Lack of efficient and effective utilization of working capital leads to earn low rate of return on capital employed or even compels to sustain losses. Working capital= current assets current liabilities

MANAGEMENT OF CASH
Cash management is one of the key areas of working capital management. Cash is the common denominator to which all current assets can be reduced because the other major liquid assets, that is, receivables and inventory get eventually converted into cash. This underlines the significance of cash management. The term cash with reference to cash management is used in two senses. In a narrow sense it is used broadly to cover and generally accepted equivalents of cash, such as cheques, drafts and demand deposits in banks. The broad view of cash also includes near cash assets, such as marketable securities and time deposits in banks.

FINANCIAL DEPARTMENT AT GLANCE LONG TERM FUNDS -State Bank of India

-HDFC Bank

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-The Laxmivilas Bank Ltd. -Citizens Co-Operative Bank Ltd.

AUDITORS:M/S Maharishi and Co. (C.A. Jamnagar)

ACCOUNTING SYSTEM:
-Double Entry System

ACCOUNTING PERIOD:
-1st April to 31st March (financial year)

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FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of the firm and establishing relationship between the items of the balance sheet and profit & loss account. Financial ratio analysis is the calculation and comparison of ratios, which are derived from the information in a companys financial statements. The level and historical trends of these ratios can be used to make inferences about a companys financial condition, its operations and attractiveness as an investment. The information in the statements is used by trade creditors, to identify the firms ability to meet their claims. I.e. Liquidity position of the company. Investors, to know about the present and future profitability of the company and its financial structure. Management in every aspect of the financial analysis. It is the responsibility of the management to maintain sound financial condition in the company.

RATIO ANALYSIS
The term ratio refers to the numerical and quantitative relationship between two or more variables. This relation can be exposed as Percentages Fractions Proportion of numbers Ratio analysis is defined as the systematic use of the ratio to interpret the financial statements. So that the strengths and weaknesses of a firm, as well as its historical performance and current financial condition can be determined. Ratio reflects a quantitative relationship helps to form a quantitative judgment.

BASIS OR STANDARDS OF COMPARISON

Ratios are relative figures reflecting the relation between variables. They enable analyst to draw conclusions regarding financial operations. They use of ratios

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as a tool of financial analysis involves the comparison with related facts. This is the basis of ratio analysis. The basis of ratio analysis is of four types. Past ratios, calculated from past financial statements of the firm. Competitors ratio, of the some most progressive and successful competitor firm at the same point of time. Industry ratio, the industry ratios to which the firm belongs to objected ratios, ratios of the future developed from the projected or pro forma financial statements

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INTERPRETATION OF THE RATIOS

The interpretation of ratios is an important factor. The inherent limitations of ratio analysis should be kept in mind while interpreting them. The impact of factors such as price level changes, change in accounting policies, window dressing etc., should also be kept in mind when attempting to interpret ratios. The interpretation of ratios can be made in the following ways. Single absolute ratio Group of ratios Historical comparison Projected ratios Inter-firm comparison

GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS

The calculation of ratios may not be a difficult task but their use is not easy. Following guidelines or factors may be kept in mind while interpreting various ratios is Accuracy of financial statements Objective or purpose of analysis Selection of ratios Use of standards Caliber of the analysis

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IMPORTANCE OF RATIO ANALYSIS Aid to measure general efficiency Aid to measure financial solvency Aid in forecasting and planning Facilitate decision making Aid in corrective action Aid in intra-firm comparison Act as a good communication Evaluation of efficiency Effective tool

LIMITATION OF RATIO ANALYSIS Differences in definitions Limitations of accounting records Lack of proper standards No allowances for price level

changes Changes in accounting procedures Quantitative factors are ignored Limited use of single ratio Background is over looked Limited use Personal bias

CALCULATIONS OF RATIOS:(1) LIQUIDITY RATIOS

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Liquidity refers to the ability of a concern to meet its current obligations as &when there becomes due. The short term obligations of a firm can be met only when there are sufficient liquid assets. The short term obligations are met by realizing amounts from current, floating (or) circulating assets The current assets should either be calculated liquid (or) near liquidity. They should be convertible into cash for paying obligations of short term nature. The sufficiency (or) insufficiency of current assets should be assessed by comparing them with short-term current liabilities. If current assets can pay off current liabilities, then liquidity position will be satisfactory. To measure the liquidity of a firm the following ratios can be calculated Current ratio Quick (or) Acid-test (or) Liquid ratio

(1) CURRENT RATIO

Current ratio may be defines as the relation between current assets and current liabilities, this ratio also known as working capital ratio is a measure of general liquidity and is most widely used to make the analysis of a short term financial position or liquidity of a firm Current assets

Current assets Current ratio = Current liabilities

Current Ratio
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Year 2008 2009 2010 2011 2012

Current Assets 103426026 307864931 322448353 457706038 473641804

Current Liabilities 81625208 112242318 150933025 235884643 332259667

Ratio 1.27 2.74 2.14 1.94 1.43

Interpretation A high current ratio is considered to be a sign of Financial Strength. Indian Bankers norm is 1.33. International norm is 2. From the above table it can be referred that in 2008, ratio was 1.27 which is as per Indian bankers norm. So its good sign of company. On the other side in 2009, ratio was 2.74 which is as per international norm. So it shows more strength of the company. Thus company is doing well as per its current ratio. But due to increase the liabilities the current ratio is decreasing 1.43 in 2012 compare to 2009.

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(2)Quick ratio:Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to the ability of a firm to pay its short-term obligation as & when they become due. Quick ratio may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if it is converted into cash within a short period without loss of value.

Quick or liquid assets Quick ratio = Current liabilities

Quick Ratio
Year 2008 2009 2010 2011 2012 Quick Assets 119372802 137069030 136710143 141300000 247200000 Current Liabilities 81625208 112242318 150933025 235884643 332259667 Ratio 1.46 1.22 0.91 0.60 0.74

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Interpretation Higher the ratio the better it is for business. Inventories are excluded from this ratio as they are least liquid of all current assets. From the above table it can be denoted that in the year of 2010, quick ratio was less than 1 i.e. 0.91. And before that in 2008 it increased to 1.46. But in 2009, it decreased to 1.22. Because of increasing in inventories and decreasing in total current asset. In 2008, quick ratio was 1.46 which shows good position of company and this ratio excludes inventories. It increases because of decreasing in inventories, total current asset and total current liabilities. In 2012 the companys position is

(2) ACTIVITY RATIO:Funds are invested in various assets in business to make sales and earn profits. The efficiency with which assets are managed directly affects the volume of sales. An activity ratio measures the efficiency (or) effectiveness with which a firm manages its resources (or) assets. These ratios are also called turn over ratios because they indicate the speed with which assets are converted or turned over into sales. Inventory turnover ratio Debtor turnover ratio Creditor Turnover Ratio Average Collection Period Total assets turnover ratio Fixed assets turnover ratio

(A) Inventory turnover ratio:Inventory turnover ratio indicates the no. of times the stock has been turned over the period and evaluates the efficiency with which a firm is able to manage its inventory. It indicates whether the inventory is efficiently used or not. It is also known as stock turnover ratio. This can be calculated by dividing the sales by average inventory.

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A ratio showing how many times a companys inventory is sold and replaced over a period.

Net sales ITR = Inventory Inventory Turnover Ratio

Year 2008 2009 2010 2011 2012 Net Sales 803977740 1255754654 1299362628 2020370869 2988220553 Inventory 193604272 176759304 185738210 191738805 298249831 Ratio 4.15 7.10 7.00 10.54 10.02

Interpretation
Inventory turnover ratio shows how efficiently inventory of the company use. In above chart in 2008 and 2009 ratio was 4.15 and 7.10 respectively. And in 2010 it was decreasing slightly and then after it was increasing. It indicates high efficient use of inventory of the company.

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(B) Debtors Turnover ratio:Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. In simple words it indicates the number of times average debtors (receivable) are turned over during a year.

Net Credit Sales Debtors turnover ratio = Average trade debtors

Debtors Turnover Ratio

Year 2008 2009 2010 2011 2012 Net Credit Sales 812573360 1175237690 1170980832 1633971788 2980529376 Average Trade Debtors 60639803 37416036 39176341 40176341 57439379 Ratio 13.40 31.41 29.89 40.67 51.89

Interpretation Higher the Debtor Turnover Ratio higher the credit management efficiency of the firm and the company is able to convert its receivables into cash. In 2008, ratio was 13.40. And increase year by year except 2010 due to decrease in net sales.

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Increasing in average debtors which show efficiency of the company to convert its receivables into cash.

(C)Average Collection Period:It represents the average no. of days during which debtors are recovered/ this average collection period can be calculated by dividing months or days in a year by debtors turnover ratio.

Days Average Collection Period= Debtors Turnover Ratio Average Collection Period
Year 2008 2009 2010 2011 2012 Days 360 360 360 360 360 Debtors Turnover Ratio 13.40 31.41 29.89 40.67 51.89 Ratio 27 11 12 9 7

Interpretation In 2008, collection period was 27 days while in 2012; it decreased to 7 days because of increasing in debtors turnover ratio. Less collection period is good for company.

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(D) Creditors Turnover Ratio:This is also known as accounts payable or creditors velocity. This ratio establishes a relationship between net credit purchases and average trade creditors. The main purpose of computing this ratio is to determine the efficiency of the firm with which the creditors are managed. The ratio is computed by dividing the net credit purchase by average trade creditors. In bank net credit purchase is not available it also includes creditors, interest payable, and bills payable. This ratio formula may be as under:

Creditors Turnover Ratio

Year 2008 2009 2010 2011 2012 Credit Purchase 597945593 918555725 884718293 1510569270 2374989215 Average Trade Creditors 49389388 85507917 88865933 109093204 155108561 Ratio 12.10 10.79 9.96 13.97 15.31

Interpretation Here the creditors turnover ratio is high in 2008 but, after than it was decrease in 2009 and 2010 ratio was 10.79 & 9.96 respectively. After than 2011 and - 62 -

2012 there is continues improvement ratio was 13.97 and 15.31 respectively. It shows good image of the company.

(E) Total Assets Turnover Ratio:A financial ratio of net sales to fixed assets. The fixed assets turnover ratio measures a companys ability to generate net sales from fixed asset investments specifically property, plant and equipment (PP&E) net of depreciation. A higher fixed asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues.

Net sales Total assets turnover ratio = Net Property

Total Assets Turnover Ratio

Year 2008 2009 2010 2011 2012 Net Sales 803977740 1255754654 1299362628 2020370869 2988220553 Net Property 266700000 304800000 336500000 403600000 560900000 Ratio 3.01 4.12 3.86 5.01 5.33

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Interpretation The ratio indicates the total assets in the form of profits. From the above graph it can be interpreted that in 2008 and 2009, ratio was 3.01 and 4.12 respectively. and then decreased to 3.86 in 2010 because of increasing in total assets. And then after increasing the ratio in 2011 and 2012, it was increasing 5.01 and 5.33 respectively. It shows the positive condition of the company.

(F)Fixed Assets Turnover Ratio:It is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit capacity of the firm. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under utilization of fixed assets.

Cost of Sales Fixed assets turnover ratio = Net fixed assets Fixed Assets Turnover Ratio
Year 2008 2009 2010 Cost Of Sales 791277740 1251157654 1253962628 Net Fixed Assets 398000000 447800000 428200000 Ratio 1.98 2.79 2.93

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2011 2012

1926070869 2832320553

424600000 415400000

4.54 6.82

Interpretation High ratio means higher efficiency & vice versa. This ratio shows the firms ability in generating sales from all financial resources committed to total assets. The ratio indicates the account of one rupee investment in fixed assets. As per above table, in 2008, fixed asset turnover ratio was 1.98 which indicates high efficiency in asset utilization of company. After than it was increased till 2012. It shows the high strength of the company.

3) PROFITABILITY RATIOS:The primary objectives of business undertaking are to earn profits. Because profit is the engine, that drives the business enterprise. Net Profit Ratio Gross Profit Ratio Operating Profit Ratio Return on capital employed or return on investment EPS

(A) Net Profit Ratio:-

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Net profit ratio establishes a relationship between net profit (after tax) and sales and indicates the efficiency of the management in manufacturing, selling administrative and other activities of the firm. It also indicates the firms capacity to face adverse economic conditions such as price competitors, low demand etc... Obviously higher the ratio, the better is the profitability.

Net Profit after Tax Net Profit ratio = Net Sales Net Profit Ratio
Year 2008 2009 2010 2011 2012 Net Profit After Tax 12700000 46000000 45400000 94300000 155900000 Net Sales 803977740 1255754654 1299362628 2020370869 2988220553 Ratio 0.02 0.04 0.03 0.05 0.05

Interpretation This ratio measures the overall efficiency of production, administration, selling, financing, pricing & tax management. High net profit ratio will help the firm service in the fall of net sales, rise in cost of production or declining demand. In year

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of 2008 ratio was 0.02 and increases year by year except 2010 profit ratio was 0.03. So company has to make positive net profit after tax so that profit ratio can be in positive terms.

(B) Gross Profit Ratio:The basis components for the calculation of gross profit ratio are gross profit and net sales. Net sales mean that sale minus sales return. Gross profit would be the difference between net sales and cost of goods sold. Cost of goods sold in the case of a trading concern would be equal to opening stock plus purchase, minus closing stock plus all direct expenses relating to purchase. In the case of manufacturing concern, it would be equal to the sum of the cost of raw materials, wages, direct expanses and all manufacturing expanses. In other words, generally the expanses charged to profit and loss account or operating expenses are excluded from the calculation of cost of goods sold.

Gross Profit Gross Profit ratio = Net Sales

Gross Profit Ratio

Year 2008 2009 2010 2011 2012 Gross Profit 68600000 52600000 138200000 358900000 499200000 Net Sales 803977740 1255754654 1299362628 2020370869 2988220553 Ratio 0.09 0.04 0.11 0.18 0.17

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Interpretation
High gross profit ratio is indicates high efficiency of the company. In above chart we show in 2008 gross profit ratio was 0.09. And then after in 2012 it is 0.17. It indicates high profit ability of the company.

(C) OPERATING PROFIT RATIO:Operating ratio establishes the relationship between cost of goods sold and other operating expenses on the one hand and the sales on the other.

Operating Cost Operating Profit ratio = Net Sales

Operating Profit Ratio

Year 2008 2009 2010 2011 2012 Operating Cost 55328459 56886941 142041367 200500000 281400000 Net Sales 803977740 1255754654 1299362628 2020370869 2988220553 Ratio 0.07 0.05 0.11 0.10 0.09

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Interpretation In 2008, operating ratio was 0.07. In 2009, it decreased to 0.05. And in 2010, ratio was increase 0.11.but after than slightly decrease in2011 and 2012 ratio was 0.10 and 0.09 respectively. Overall performance of the company is good.

(D)EARNINGS PER SHARE Earnings per share is a small verification of return of equity and is calculated by dividing the net profits earned by the company and those profits after taxes and preference dividend by total no. of equity shares.

Net profit after tax Earnings per share = Number of Equity shares
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The Earnings per share is a good measure of profitability when compared with EPS of similar other components (or) companies, it gives a view of the comparative earnings of a firm.

Earnings Per Share

Year 2008 2009 2010 2011 2012 Net Profit after Tax 12700000 46000000 45400000 94300000 155900000 Number of Equity Shares 5351520 5851520 5851520 6084404 7547285 Ratio 2.37 7.86 7.76 15.50 20.66

Interpretation Earnings per share ratio are used to find out the return that the shareholders earn from their shares. After charging depreciation and after payment of tax, the remaining amount will be distributed to all the shareholders. In 2008 and 2009, EPS was 2.37 and 7.86 respectively, while in 2010, it was 7.76 because of decreasing in net profit after tax. In the year of 2008 and 2009, so company should make positive profit. (E)RETURN ON INVESTMENTS

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Return on share holders investment, popularly known as Return on investments (or) return on share holders or proprietors funds is the relationship between net profit (after interest and tax) and the proprietors funds.

Net profit (after interest and tax) Return on shareholders investment = Shareholders fund

The ratio is generally calculated as percentages by multiplying the above with 100.

Return on Shareholders Investment

Year 2008 2009 2010 2011 2012 Net Profit (after Interest and Tax) 12700000 4600000 45400000 94300000 155900000 Shareholders Funds 334257486 304772201 336466179 403576495 560861149 Ratio 0.04 0.15 0.13 0.23 0.28

Interpretation

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Return on investment ratio was 0.04 in 2008. In 2009, ratio was 0.15. While in 2010 it was decrease 0.13 then after it continues increase in year 2011 and 2012 was ratio 0.23 and 0.28 respectively. It is good for the company.

4) LEVERAGE RATIOS
The leverage or solvency ratio refers to the ability of a concern to meet its long term obligations. Accordingly, long term solvency ratios indicate firms ability to meet the fixed interest and costs and repayment schedules associated with its long term borrowings. The ratios indicate the degree to which the activities of a firm are supported by creditors funds as opposed to owners. The relationship of owners equity to borrowed funds is an important indicator of financial strength. The debt requires fixed interest payments and repayment of the loan and legal action can be taken if any amounts due are not paid at the appointed time. A relatively high proportion of funds contributed by the owners indicate a cushion (surplus) which shields creditors against possible losses from default in payment. Debt-equity ratio Debt-asset ratio Proprietary ratio

(A)DEBT-EQUITY RATIO: The relationship describing the lender contribution for each rupee of the owners contribution is called DEBT-EQUITY RATIO. This ratio indicates the extent to which debt is covered by shareholders funds. It reflects the relative position of the equity holders and the lenders and indicates the companys policy on the mix of capital funds.

Debt Debt-Equity ratio = Equity

Lower the debt-equity ratio higher the protection for company creditors

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Debt-Equity Ratio
Year 2008 2009 2010 2011 2012 Debt 39619066 35213006 45139676 54070115 60808643 Equity 53515200 58515200 58515200 60844040 75472850 Ratio 0.74 0.60 0.77 0.89 0.81

Interpretation Lower the debt-equity ratio higher the protection for company creditors. In 2008, Debt-Equity ratio was 0.74, which was good for company creditors. In 2009, ratio was decreased so its good for creditors. After that year in 2010, it was increased by 0.77 but it was still higher than 0.74. in 2011, ratio was goes up to 0.89 which was not good sigh towards company creditors. Finally in 2012, ratio goes down to 0.81 which was good towards company creditors. An even lower ratio would have been better for the creditors.

(B)DEBT-ASSET RATIO: It measures the extent to which borrowed funds support the assets of a company.

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Debt Debt-Asset ratio = Asset

Debt-asset Ratio
Year 2008 2009 2010 2011 2012 Debt 39619066 35213006 45139676 54070115 60808643 Asset 883700000 778600000 773600000 746500000 966200000 Ratio 0.04 0.05 0.06 0.07 0.06

Interpretation In 2008, Debt- Asset ratio was 0.04 which was increased to 0.05 in 2009 because of increased in total debt and total asset. In 2010, it was goes up to 0.06 because of increasing in total debt and it was not good strength of company. In 2011, it was again goes up to 0.07 and it was not good strength of company. In 2012 it was goes down to 0.06 and it was good strength of company. Here, less debt and high asset shows better strength of the company. (C)PROPRIETARY RATIO:

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This ratio states relationship between share capital and total assets. Proprietors equity represents equity share capital, preference share capital, reserves, and surplus. The latter ratio is also called capital employed to total assets. This ratio establishes relationship between share holders funds to total assets of the firm.

Shareholders funds Proprietary ratio = Total assets

Proprietary Ratio
Year 2008 2009 2010 2011 2012 Shareholders Fund 334257486 304772201 336466179 403576495 560861149 Total Assets 883700000 778600000 773600000 746500000 966200000 Ratio 0.38 0.39 0.43 0.54 0.58

Interpretation

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The proprietary ratio establishes the relationship between shareholders funds to total assets. It determines the long-term solvency of the firm. This ratio indicates the extent to which the assets of the company can be lost without affecting the interest of the company. Total assets, includes fixed and current assets. The fixed assets are reduced because of the depreciation and there are no major increments in the fixed assets. From the above table it can be referred that in 2008, ratio was declined and then it increased year to year. In 2008, proprietary ratio was 0.38 which was good. In 2009, it was increase to 0.39 because of less increased in equity shareholders fund and high increased in total asset. In 2010, proprietary ratio was 0.43 because of increased in shareholders fund and decreased in total asset. In 2011, proprietary ratio was 0.54 because of increase in equity share holders fund and decrease in total assets. In 2012 ratio was 0.58 because of increase in equity share holders funds and total assets.

FUTURE PLANS
Planning is in integral part of every organization. Planning means what to do, when to do, how to-do, and who to do it. It is the estimation and forecasting of the risk factors along with better development prospects in future. Thus each and every company plans for its expansion and development in future In the future, we will continue following the footsteps of our founder and develop more innovative, environment-friendly and practical automobile vehicles considering changes in market trends Here are few vehicles which are under planning: Micro Commercial Vehicle to carry 750 Kg. payloads Range of Electric Commercial Vehicles 4-Wheeler One Tonner LCV

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FINDING
In all five year the current ratio is higher with compare to the standard ratio but if we will compare the component with Inventory turnover ratio than we can come to know that money is blocked in stock and finished goods which is not converted into sale. So we are losing the opportunity cost.

If we will take the reference of quick ratio than we can come to know that the much more money is blocked in Inventory rather than the cash, bank or marketable security.

Debtors turnover ratio increasing it has given negative impact on stoke turnover ratio. Current ratio is decrease compare to last 3 years due to liabilities increase.

The company has not issued debenture so the leverage benefit has not been receivable by the company.

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All over the company has good financial position. Most promising SME in Auto & engineering by CNBC-TV18-ICICI Bank Emerging India Awards 2012, on March 22, 2012 at Mumbai.

Company incurred a capital expenditure of ` 846 lacs (` 425 lacs in the previous year). The entire capital expenditure was funded out of internal accruals.

Company had liquid assets of ` 4,926 lacs as against ` 2,888 lacs at the end of previous year 2010-11. The funds have been invested in liquid mutual funds.

Equity share aggregating to an amount of ` 439 lacs on Right Basis in the ratio of 1 Equity share for every 4 Equity shares on 25th October, 2011.

The declaration and payment of dividends on Equity shares is recommended by the Board of Directors and approved by the shareholders of the company. The amount paid as dividend in past is not indicative of companys dividend policy in future.

Company proposes to transfer ` 156 lacs (10% of the net profit for the year) to the general Reserve. An amount of ` 3,696 lacs are proposed to be retained in the profit and loss account.

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RECOMMENDATIONS

Atul Auto Ltd with the help of other Atul Group of companies has established strong business house. The functioning and management of Atul Auto Ltd. is very good Being a student just standing on the threshold of studies of management as discipline. But considering this as an initiative give out my view mention some of the suggestion as per my knowledge .Some of the suggestions is under: The capital investment of Atul Auto Ltd. is less compared to its competitive industries Atul Auto Ltd. can explore more my investing more and getting high returns. Atul Auto Ltd. must also increase its activities in research and development activities. It must try to active and expand its activities in foreign market Also as it covers the loan market and is a more popular brand in local market keeps aside very less funds for advertisement purpose. Thus it must try to

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increase advertisement activities so that it can also cover the markets in other states of the country. Here company applied liberalized credit policy. So company requires more working capital for day to day expenditure so company should applied conservative credit policy. The optimum investment is to be made in the inventories to make liquidity position of the company more sophisticated.

CONCLUSION
Following paragraph is an attempt is an attempt to highlight the result of this study: It appears from the study of financial organization structure and working of Atul Auto Ltd. that product is local famous brand having brighter future in local market. Atul Auto Ltd. has close customer links for better marketing practices. The production of Atul Auto Ltd. has low cost as compare to their competitors. Moreover Atul Auto Ltd. has entered the export market and has vast possibility to hunt overseas market in near future.

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BIBLIOGRAPHY
REFERENCE BOOK I.M. Pandey, Financial Management, Ninth Edition, Ambrish Gupta Third Edition. REFERENCE REPORT Annual Report, Atul Auto Limited. National High way 8-B, Near Microwave Tower, Shaper(Veraval) , Rajkot- 360002 REFERENCE WEBSITE www.atulautolimited.com WWW.moneycontrol.com

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