Industry background

Driving the most luxurious car has been made possible by the stiff competition in the automobile
industry in India, with overseas players gathering the same momentum as the domestic
participants.

Every other day, we have been hearing about some new launches, some low cost cars – all
customized in a manner such that the common man is not left behind. In 2009, the automobile
industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry
in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following Japan,
South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles.
Several Indian automobile manufacturers have spread their operations globally as well, asking
for more investments in the Indian automobile sector by the MNCs.

Potential of the Automobile industry

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to
export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General
Motors.
The figures show that the automobile sector in India has been growing robustly. The market
shares of the different types of vehicles will clearly depict the demand pattern in this sector.
Industry Overview
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile
Industry of India has come a long way. During its early stages the auto industry was overlooked
by the then Government and the policies were also not favorable. The liberalization policy and
various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian
Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18
% per annum, has become a hot destination for global auto players like Volvo, General Motors
and Ford.

A well developed transportation system plays a key role in the development of an economy, and
India is no exception to it. With the growth of transportation system the Automotive Industry of
India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian
economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can
be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.

Snippets

• The first automobile in India rolled in 1897 in Bombay.

• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1 million mark.
The origin of automobile is not certain. In this section of
automobile history, we will only discuss about the phases
of automobile in the development and modernisation
process since the first car was shipped to India. We will
start automotive history from this point of time.

The automobile industry has changed the way people

live and work. The earliest of modern cars was
manufactured in the year 1895. Shortly the first
appearance of the car followed in India. As the century
truned, three cars were imported in Mumbai (India). Within decade there were total
of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was
used for transportation in India. In the begining of 15th century Portuguese arrived
in China and the interaction of the two cultures led to a variety of new technologies,
including the creation of a wheel that turned under its own power. By 1600s small
steam-powered engine models was developed, but it
took another century before a full-sized engine-powered
vehicle was created.

The actual horseless carriage was introduced in the year

1893 by brothers Charles and Frank Duryea. It was the
first internal-combustion motor car of America, and it
was followed by Henry Ford's first experimental car that
same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver
Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens
and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis
was on comfort and style rather than speed.

growing by 8-9 per cent.

Current Scenario

• The Indian automobile industry crossed a landmark with total vehicle production of 10
million units.
• Car sales was 8,82,094 units against 8,20,179 units in 2004-05.
• The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765
units in 2004-05.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430
units in 2004-05.
Facts & Figures
India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger
car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the
ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03.

The ICRA's analysis points on the auto sector that the passenger car market in the country was
inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was
getting crowded everyday, would witness intense competition as many SUVs had been
competitively priced, the report said.

Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their
premium SUVs in the market to broaden their portfolio and create product excitement in the
segment estimated at about 10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent
rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate
and mopeds would also see the same. Overseas market would present huge opportunities for the
two-wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial
vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7
per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.

Indian Auto Market Growth for the year 2005-06

 The domesticautomobile industry sales grew 12.8 per cent at 89,10,224 units as against
78,97,629 units in 2004-05.
 The automotive industry crossed a landmark with total vehicle production of 10 million units.
 According to the Society of Indian Automobile Manufacturers (SIAM), car sales was
8,82,094 units against 8,20,179 units in 2004-05.
 The growth of domestic passenger car market was 7.5 per cent
 Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.
 The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against
62,09,765 units in 2004-05.
 Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417
units against 49,64,753 units in 2004-05.
 Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-
05.
 Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430
units in 2004-05.
 Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per
cent growth in the year ended March 31, 2005.
 Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924
units in 2004-05.
 Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
Auto Component Market
The Indian auto parts industry is significantly fragmented with a large number of players having
a turnover of less than US$10 million per year. The industry directly employs about 2,50,000
people and has an annual turnover over US$ 56.3 billion.

• Estimated market size - US$ 6.7 bn

• Estimated market size by 2012 - US$ 17 bn
• Projected CAGR - 15%

Note: Nearly two-thirds of the auto component production is consumed directly by Original
Equipment Manufacturers (OEMs).

Market Advantage

• Fast paced urbanisation to rise from 28% to 40% by 2020.

• Upward migration of household income levels.
• Middle class expanding by 30-40 million every year.
• Growing working population.

Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to
carry on the momentum in the foreseeable future. Indian automobile industry has come a long
way since the first car ran on the streets of Bombay in 1898. Today, automobile sector in India is
one of the key sectors of the economy in terms of the employment. Directly and indirectly it
employs more than 10 million people and if we add the number of people employed in the auto-
component and auto ancillary industry then the number goes even higher.

The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger
cars; and two-wheelers. Heavy vehicles section is dominated by Tata-Telco, Ashok Leyland,
Eicher Motors, Mahindra and Mahindra, and Bajaj. The major car manufacturers in India are
Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd., General Motors India
Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., and Skoda India Private Ltd.,
Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero
Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Yamaha etc.

In the initial years after independence Indian automobile industry was plagued by unfavourable
government policies. All it had to offer in the passenger car segment was a 1940s Morris model
called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile
sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the
1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of
tariffs on imports, and refining the banking policies played a vital role in turning around the
Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a
handful of local companies. However, after the sector opened to foreign direct investment in
1996, global majors moved in. Automobile industry in India also received an unintended boost
from stringent government auto emission regulations over the past few years. This ensured that
vehicles produced in India conformed to the standards of the developed world.

Indian automobile industry has matured in last few years and offers differentiated products for
different segments of the society. It is currently making inroads into the rural middle class
market after its inroads into the urban markets and rural rich. In the recent years Indian
automobile sector has witnessed a slew of investments. India is on every major global
automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub
for automobile companies worldwide, as indicated by the zooming automobile exports from the
country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their
manufacturing bases in India. Due to rapid economic growth and higher disposable income it is
believed that the success story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

• Second largest two-wheeler market in the world.

• Fourth largest commercial vehicle market in the world.
• 11th largest passenger car market in the world
• Expected to become the world's third largest automobile market by 2030, behind only
China and the US.

CONTENTS

S.NO CONTENTS PAGE.NO

1 INTRODUCTION – INDUSTRY
2 OBJECTIVES

3 INTRODUCTION – COMPANY
4 ORGANIZATION CHART
5 DETAILS OF DEPARTMENT
5.1 Purchase Department

5.2Production Department

5.3 Personnel Department

 5.4 Accounts Department

5.5 Sales Department

6 CONCLUSION
 ACCOUNTS DEPARTMENT

OBJECTIVES:

1. Provide financial information for good decision making with financial reporting,
planning framework, benchmarking, training, consolidated budgeting and analysis.

2. Provide seamless, friendly customer service via training, visits, development of

staff, web access, FAQ, and tax knowledge.

3. To protect and strengthen the bases of financing the organization's activities and
to provide efficient and comprehensive financial accounting and reporting for these
activities

As finance is the life blood for every business, no business enterprises can be
started and run smoothly without finance like cash and bank transactions.

ACCOUNTS DEPARTMENT CHART:

Managing Director

General Manager

Finance Manager

Account Auditor Assistant

ant Accountant
BOOKS MAINTENANCE

The accounts departments are maintaining all the day-to-day activities in a

detailed manner.

Maintenance of Books

• Vouchers.
• Balance Sheets.
• Registers.
• Time keeping registers.
• Gate Keeper Note book.
• Stock keeper Note book.

Some of the books have maintained by the company regarding the company
whole work nature and based on the other company activities.

JOURNAL

The French word ‘Jour’ means ‘Day’ Journal therefore means a daily record of
business transactions.

Journal is a book of ‘Primary Entry’ or ‘Original Entry’. All transactions are

initially recorded in the journal. The ruling of the journal is such that any business
transaction can be analyzed under the heads of debit and credit.

LEDGER

‘Ledger’ is the second important stage in the accounting cycle or process. In

this stage of accounting cycle, all recorded business transactions or entries are
grouped on a predetermined basis. ‘Ledger’ is the main book of accounts in a
business.
PURCHASE BOOK

Purchase book is also known as ‘Bought Book’ ‘Purchase Day Book’, ‘Invoice
Book’; and ‘Purchase Journal’.

 All credit purchases of goods are recorded in this book. Periodical total of this
book provides total credit purchase of goods made by the firm.
 Cash purchase of goods and credit or cash purchase of assets are ignored in this
book.
 ‘Inward invoices’ received from suppliers, duly verified, form the basis for entries
in purchase book.

SALES BOOK

Sales book is also known as ‘Day Book’, Sales Book’, ‘Sold Book’, Sales
Journal’ etc.

All credit sales of goods are recorded in this book. Periodical totals of this book
provide the total credit sales of goods by the firm.

Cash sales of goods and credit sales of assets are not shown in this book.

‘Outward Invoices’ form the basis for making entries in the sales book. The
invoices must be properly authenticated.

CASH BOOK

Cash book plays a ‘Dual Role’ by servicing as a subsidiary book and also as a
ledger account.
 It is the book of original entry because receipts and payments are recorded in
the cash book and they are posted to the different accounts in the ledger.

Cash book also serves the purpose of a ledger because it is written like an
account with opening and closing balances and with debit and credit sides. There is
no need to open cash account in the ledger.

There are four types of cash book

1. Simple cash book or single column cash book

2. Two column cashbook with cash and discount columns
3. Two column cash book with bank and discount columns and
4. Three column cash book with cash bank and discount columns.

SIMPLE CASHBOOK

This type of cash book contains debit side and credit side, showing all
receipts of cash on debit side and payments of cash on credit side. Debit side is
called receipts side and credit side is called payments side.

TWO COLUMN CASH BOOK WITH CASH AND DISCOUNT COLUMNS

The method of maintaining this cash book is almost like simple cash book.
On the debit side as well as credit side, a discount column is maintained. When
payments are made, discount received on payments is shown in the discount
column on the credit side. Similarly, when cash received, discount may be allowed
to the customer who is recorded in the discount in the discount column on the debit
side.

TWO COLUMN CASHBOOK WITH BANK AND DISCOUNT COLUMNS

Large corporations and big firms usually make all payments through Cheque
and receipts are also through Cheque. Such companies and firms maintain a cash
book with bank and discount column only. All Cheque issued are shown on
payments side. All Cheque received and deposited in bank are shown on the
receipt side. Discount allowed and received columns are also maintained on the
receipts side and payments side respectively.

THREE COLUMNAR CASH BOOK

This type of cash book is of maximum utility because it minimizes work

relating to accounts and presents a summarized picture of the liquidity position of a
business.

On both sides of the cash book, separate columns are opened for discount.
Cash and bank. All transactions relating to cash receipts and cash payments are
shown in the cash columns on receipts side and payment side respectively.

Similarly, all Cheque issued for payment are shown in bank column on credit
side. All deposits – both cash and cheque-are shown on the debit side in the bank
column. Discount allowed on both cash and Cheque received is shown on debit
side. Discount received on both cash paid and Cheque issued is shown on credit
side.

TRIAL BALANCE

After preparing ledger a/c the trial balance is prepared. The balances are
taken from the ledger accounts.

FINAL ACCOUNTS, TRADING AND PROFIT-LOSS ACCOUNT

The preparation of this account is possible only after the preparation of the
trial balance. At the end every year account are prepared to know whether the
company is making profit/loss. The account is prepared to know the profit/loss for
the year.

BALANCE SHEET

The statement is prepared to know the accurate financial position of the

company n. This statement sets out the assets & liabilities of the company.
Normally final accounts are prepared at the end of the financial year {i.e.} 31st
march of every year. Balance sheet & profit &loss account are prepared & they are
audited by auditors. Auditing is done every year.

SALES DEPARTMENT

OBJECTIVES:

1. The objective of a sales department to go get customers to maintain or increase

their purchase of a product. They also should build a relationship between the
company and their clients to better accomplish the first goal.

2. Sales department is responsible for marketing strategy, advertising, researching,

promoting, conducting customer surveys, branding, public relations and creating of
corporate style.

Under the sales department the marketing manager verify the sales details of
the company. He is the main support to have a good and wonderful relationship
with all the employees of the company. He must be able to communicate freely
with each other and also among the foreign buyers.

Functions of Sales Department

The functions of Sales Departments are

1. Assessing consumer demand

2. Creating ability to provide quality goods
3. Ensuring adequacy of finance depending upon the production and the length of time
interval between production and sales
4. Choosing the market to decide on the quality and the price
5. Choosing the right channels of distribution and the right media of advertising.
WARE HOUSE FACILITIES

The ware house is the place where the raw materials as well as the
finished products are well placed in the company. Here the area will be kept
under good condition and the products will be well preserved from any loss or
damage. Thus the goods will be well equipped in these warehouses.

There will be a clear maintenance of the stock and well qualified person will
be placed for the supervision of the ware house. The materials so stored are
to be well stored, so that nothing happens to the goods until its usage.
CONTENTS

 INTRODUCTION – INDUSTRY
 INTRODUCTION – COMPANY
 OBJECTIVES
 ORGANIZATION CHART
 DETAILS OF DEPARTMENT

• Purchase Department
• Production Department
• Sales Department
 • Personnel Department

5. CONCLUSION

INTERNSHIP TRAINING REPORT

In

FASHION GATE PVT LTD

Submitted by

Mr.K.ARULKUMAR B.Sc.,

( Reg No: 098001131002 )

Under the Guidance of

Mrs. V. SUBHA, M.B.A., M.Phil.,

Training Report submitted to Anna University of Technology, Coimbatore in

partial fulfillment of the requirement for the award of the Degree in

MASTER OF BUSINESS ADMINISTRATION

 DEPARTMENT OF MANAGEMENT STUDIES

ADITHYA INSTITUTE OF TECHNOLOGY

COIMBATORE-641107.

AUGUST 2010

ADITHYA INSTITUTE OF TECHNOLOGY

(Affiliated to Anna University of Technology, Coimbatore)

SF No.344, Kurumbapalayam Post,

Sathy Road, Coimbatore-641 107.

DEPARTMENT OF MANAGEMENT STUDIES

 CERTIFICATE

This is to certify that the, “INTERNSHIP TRAINING” in FASHION

GATE PVT LTD is undergone by Mr.K.ARULKUMAR, B.Sc., submitted
in partial fulfillment of the requirement for the award of the degree in Master of
Business Administration (M.B.A) of Anna University of Technology, Coimbatore
– 641000.

____________________ ____________________

Mrs. K.Vidyakala, M.B.A., M.Phil. Mrs. V. Subha, M.B.A, M.Phil.

Head of the Department Faculty Guide

 ACKNOWLEDGEMENT

I express my sincere thanks and gratitude to Mr. C. Sugumaran, Chairman, Adithya Institute of
Technology for his support in all our endeavors.

I extent my heartfelt thanks to the Dr. N. Kathiravan, M.E., Ph.D., Principal Adithya Institute
of Technology, for his effective guidance and contribution in terms of professional expertise and
academic knowledge.

I express my sincere thanks to Mrs. K. Vidyakala, MBA., M.Phil., Head of the

Department, M.B.A., for providing me an opportunity to undertake this training in Fashion Gate Pvt
Ltd .

My profound gratitude to Mrs. V. Subha, MBA., M.Phil., my training guide for her continued
infallible guidance, motivation and support during the entire training period.

I thank Mr. Kumar, General Manager and all the Staff Members of Fashion Gate Pvt

Ltd, Who have rendered their support and guidance during my training period in the organization.

I would like to express my sincere thanks to my parents and friends for their unbounded support
to make this training report a reality.