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A Project Report

OF
NITIN AUTO WORKS PVT. LTD.
Submitted to UNIVERSITY OF PUNE
Under The Guidance of

Prof: Snehal Gaur


Submitted By: Nitindas Kallingal
BBA III SEM VI
[Finance]

STESs
Singhad College Of Commerce
Kondhwa(Bk), PUNE-48

SINHGAD TECHNICAL EDUCATION SOCIETYS

SINHGAD COLLEGE OF COMMERCE


KONDHWA (Bk), PUNE-48

CERTIFICATE OF THE COLLEGE


This is to certify that Mr.Nitindas Kaliingal, student of BBA III Sem
VI ( Finance), SCOC, PUNE has completed his project on Project
report of Nitin Auto Works Pvt.Ltd. and has submitted the project
report in partial fulfillment of BBA degree of the University of Pune
for the academic year 2012-2013. He has worked under our
guidance and direction. The said report is based on bonafied
information. His work is found to be satisfactory and complete in
all respect.

Dr. M.S.Wazal
Prof. Snehal gaur
Principal
(Project guide)

External Supervisor

Date:
Place: Pune

ACKNOWLEDGEMENT

It was a rare opportunity to prepare a project report of


companies and that are well known for their core
corporate values and practices that it imbibes into all
individuals who, no matter even for a short duration,
enter the premises of different industries.

I am grateful to our principal Dr.M.S.Wazal and our guide


Prof. Snehal Gaur , whose thorough guidance and
direction has helped me accomplish the project with
maximum understanding.
I would like to express my gratitude towards all of them
who have given their earnest support, directly or
indirectly for this report.

Nitin Auto Works


About us

Mr. Haridas Kallingal (CEO,CFO, Nitin Auto


Works) bears a good reputation in the business lobby,
pioneering the group effectively from 19 years and lead
the automobile service industry into different horizon of
success. Under his able leadership the automobile service
industry makes its successful presence in repairing ,
servicing , insurances grabs high demand and competing
many old and other automobile service industry.

Mr. Nitindas Kallingal (Director, Nitin Auto


Works)
With the Effective leadership, vision, new innovation
technique and proper managing of funds, Mr. Nitindas
Kallingal did best to makes its group into a repuated
image.
His successful ventures into Spares Parts lead Nitin Auto
Works to earn good name and fame.

Mr. Jayprakash Nair (MD, Nitin Auto Works)


With the Innovative ideas, vision, technique and proper
managing of services, Mr. Jayprakash Nair manages the

services needs of customer as per their needsand


provides proper services needed in the service industry.

Nitin Auto Works


Brief history of
company

Nitin Auto
Works
For the People, To the people, by us...!

Nitin Auto Works


Type

Founded

Private
Service

Automobile

1992

Founder(S) Mr. Haridas Kallingal


Headquart Pune, Maharashtra, In
ers
dia
Area
served

Repairing
Servicing
Insurance

Industry

Servicing

Owners(S)

Mr.Haridas Kallingal

Nitin Auto Works


Nitin Auto Works has been formed in 1992 under
the vision of its CEO, MD Mr. Haridas Kallingal,
under the one room office.
Slowly and gradually the Group marks its presence
in market and competing many service industry
effectively and till now it has many successful
services in the fields of Services, Insurances, etc.
The brief descriptions services provided done are
as follows.

Nitin Auto
Sector
Repairing

Servicing

Insuranc
e

Spares
Parts

Services
Denting &
Painting
Spare Parts

All the types of


four wheelers
are serviced
Satisfication to
the customer
Four wheelers
insurance are
provided

All types of four


wheeler spare
parts are
available and
provided as per
the need

Nitin Auto Works Future prospects:


Planning for entering in Showroom
and Spare parts businesses.
Planning to enter in infrastructure
business.
To launch Nitin Auto Works in
different parts of states.
Planning to launch high profile city
in small town of Kerala, Delhi,
Kolkata, Rajasthan and
Maharashtra.

Nitin Auto Works

Name

Designation

Mr. Haridas
CEO,CFO
V.Kallingal
Mr. Jayprakash Nair Manager(MD)
Mr. Nitindas
Director
Kallingal
Mr. Nishant
Mechanical engineer
Mr. Bappu
Tax consultants and
Auditior

Mr. Ratheesh Nair


Mr. Nasir Shaikh

Employee In-charge
Supervisor

Mr. Motilal
Mr. Nyaneshwar
Mr. Fayaz

Painter
Assistant employee
Trainer

Present Market
condition of
automobile service
industry:

The automobile service industry is emerging field in India and


does not have much competition.
This field is generally popular as service industry and does not
have big recognized brand outlets.
According to present market status, there are very few recognized
brand options are available for the consumer such as First choice,
sai service, etc.
But there are no specific buying, selling and repairing service
outlets, which give new variety line of services with proper quality
standards under one roof.
So Nitin Auto Works has decided to enter Into this sector to boast
up this emerging field and planning to launch its buying, selling
and repairing service outlets in India, followed by worldwide.
This would be a big revolution in the automobile service industry.

Role in the market


Of Nitin
Automobile
services Pvt.Ltd.

As after launching its automobile service sector. The


prime objective of Nitin Auto Works is to capture the
market effectively in very short span of time.
Quality and new innovative automobile service characters
are the prime key points to grab the customers and Nitin
Auto Works would majorly concentrate in making stable
and well recognize towards its Business.
After entering into this sector Nitin Auto Works would
be a boasting factor in the automobile service industry in
India and would be a new revolution in this sector.
The growth in this field support many more associated
industries such as Denting, painting, repairing, etc.

So the growth prospect of this sector would emerge and


due to this surely it would assist in the growth of
economy and automobile service industry would be one
of the booming sector in upcoming years.

SWOT analysis of

Nitin Auto
Works

Nitin Auto Works


Strength:
Good coordination among employees and employer.
Effective planning and meetings dead line timely.
Having strong top level management.
Effective and quality manpower.
Always have new and innovative approach for their service,
which result in a big success for them.
The funds are always been rotated and they does not believe
in much debt.
Costing according to customer leads to increase in demands
and result into good profitable position.
They always believe in change and try to improve its service
status due to unique marketing strategy.

It enjoys good market reputation for various services they


offer.

Nitin Auto Works


Weakness:

Moving in every sector very rapidly.


Does not interlink funds of one service to another.
Does not concentrating on single segment.
Insurance is a tough call for Nitin Auto Works and their
future plans for establishing high profile society in small
cities may be risky.
In this sector if there are no accidents it will affect the
business.

Nitin Auto Works


Opportunity:
They are planning to be in every emerging segment, and due
to effective planning and innovation method, they could
easily capture the particular segment.

Automobile service is a generally emerging segment and


basically owned by service industry, but making as buying
and selling through retail chains could grab business a good
customer base and would a successful segment of the Nitin
Auto Works.
If Nitin Auto Workss high profile city plan in small town of
various states would become a successful hit, then it brings
good capital and its goodwill would automatically rise.

Nitin Auto Works


Threats:

This business has wide competitors and if competition


would increase, then it would be a major threatening
call for them.
If same concept of automobile service retail would
introduce by other big giants then would be a major
threat for this new and innovative concept.

Model: Rolls Royale


Service description: Bumper Scratch
at 1 side painted and cleared.

BEFORE

Model: Toyota Innova


Service description: Front head light,
side scratch, front bumper
AFTER

BEFORE

Model: Maruti Suzuki Swift Dzire


Service description:
AFTER

Explanations of
Ratios:
For Nitin Auto Works Pvt.Ltd.

(1)Liquidity Ratios:

(a) Current ratio:


This ratio indicates the solvency of the business i.e ability to meet
the liabilities of the business as and when they fall due. This ratio
also indicates how much Current Assets are there as against each
rupee of current liabilities.
The ideal ratio is 2:1
Average of 5 years Current ratio of Nitin Auto Works
automobile service s Pvt. Ltd.: is 5.78%
Interpretation:
So from this it can be stated that a company is in sound position
to meet its current liabilities.

(B) Quick Ratio or liquid ratio:


As regards the ability to honor day to day commitment, liquid
ratio is a better tool. It is the ratio between liquid assets and liquid
Liabilities.
An ideal ratio is considered as 1:1
Average of 5 years Quick ratio of Nitin Auto Works
automobile service s Pvt. Ltd.: is 5.56%

Interpretation:
So from this it can be stated that a company could meet its day to
day commitment very smoothly.

(2) Solvency Ratio or Long term financial


Ratio:

(a)

Debt-Equity ratio:

Debt-equity ratio reflects relative contributions of creditors and


owners to finance the business.
The desirable ideal proportion of the two components (high or low
ratio)
varies from industry to industry.
Average of 5 years Debt-Equity Ratio of Nitin Auto Works
automobile service s Pvt. Ltd.: is 0.80%
Interpretation:
Long term financial position of the company is satisfactory,
because total shareholder funds are more than long term loans.
It shows that the company does not have much debt in long run,
and it can meet its debt easily.

(b) Debt Service Coverage Ratio (DSCR)


This ratio shows how many times the profit covers the interest. It
shows the margin of cover to lenders of the company. It is always
desirable to have profit more than the interest payable. In case
profit is either equal or lesser than the interest, the position will
be unsafe or it will show that there is nothing left for the
shareholder and the position of lender is also unsafe.

In other words, the ratio ascertains whether the company is


capable of meeting interest on the loans easily out of profits or
not.
Average 5 years DSCR of Nitin Auto Works automobile
service s Pvt. Ltd.: is 1.47%
Interpretation:
The DSCR should be one or more percentage and it is having
more then 1% which shows that it has good margin cover to
lender of the company and having and It reflects that company is
capable for meeting interest from its profits.

(3) Profitability Raito:


(a) Gross Profit Ratio:
It shows the relationship between the gross profit and sales. This
ratio shows the margin of profit on sales. In order to calculate this
ratio we require gross profit and net sales.
It indicates the degree to which selling prices of goods per unit
may decline without resulting in losses on operation for the firm.
Average 5 years Gross Profit Ratio of Nitin Auto Works
automobile service s Pvt. Ltd.: is 53%

Interpretaton:
The overall margin of profit on sales of the company is more than
50% which reflects company having good margin of profit on
sales.

(b) Net Profit Ratio


This ratio establishes relationship between net profits and
net sales.

Net Profit is that proportion of net sales which remains with the
owners of the shareholders after all cost, charges, expenses
including income tax have been deducted.
Average 5 years Net Profit Ratio of Nitin Auto Works
automobile service s Pvt. Ltd.: is 24.61%

Interpretation:
It signifies that the company is earning sufficient amount of net
profits from its sales and a good sum of amount to met out its
expenses for generation of sales.

Feasibility of
Project
For Nitin Auto Works Pvt.ltd

The Project of Nitin Auto Works Automobile service s Pvt.Ltd


would be feasible from the following aspects.

Administrative:
The Pioneers are having sound experience in the field of
business.
The existing business and brands are doing well and earn big
name and fame, from which it can be predicted that this
project would also prove to be feasible.
The creative concept and marketing strategies would grab
more customer base and result into good profitability.

Financial:
The liquidity position of the Company is sound and it can
meet its liabilities without failures.
Due to good Debt equity ratio and DCSR the company is
having sound position to repay its outside liabilities, thus
would increase the chances for project feasibility.
At last the main aspect the profitability position of business,
from GP ratio we can ascertain that company having good
margin over sales and from Net profit ratio we can mark that
It that the company is earning sufficient amount of net

profits from its sales and a good sum of amount is remaining


after all deductions, which help company for further
expansion, thus it treats that project is feasible.

Marketing Aspects:
As Nitin Auto Works is much known for its unique marketing
strategies, they to come up with new and innovative
approach for their automobile service project.
This would make a wide approach to their targeted customer
and result in a high feasibility for the project.
As the previous goodwill of Nitin Auto Works is sound which
help in creating much customer base, so this would increase
the chances for project feasibility.

Competitors Aspects:
As automobile service s industries are in emerging sector
and specially carried out by handloom industry, so there are
no close competitors for the particular retail chain of their
products. So it would be stated that the feasibility of project
would increase on this point of view.

The big giants are Archies, Home Shop 18 etc, but they does
not possess the same concept as Nitin Auto Works
Automobile service s are having.
So there is no chance for the close competition among them
as their promotional strategies and concept differs

So this turns to increase in possibilities of feasibility of


project.

Conclusion of
Project Report
Of Nitin Auto Works Pvt. Ltd

From the ratios stated above it can observed that the


financial position of the Nitin Auto Works Automobile service
s Pvt. Ltd. is sound and it is capable for meeting its short
term obligation and short term financial strength is strong.
Even the Long term solvency of Nitin Auto Works Automobile
service s Pvt. Ltd. is good which assures the long term
creditors with regard to periodic payment of interest, and
the repayment of a loan on maturity or in pre-determined
installments at due date.
The profitability position of Nitin Auto Works automobile
service s Pvt. Ltd is sound and the company is capable for
earning good profits.
And above discussed Project feasibility aspects we can say
that the project is feasible for long run and capable to earn
good profits and could meet its financial obligations easily.

Bibliography

www.google.com
www.wikipedia.com
nitinautoworks@gmail.com
Analysis of financial statements
(NCERT, class XII)
Management Accounting (Nirali
Prakashan, BBA sem- III)

Self knowledge.

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