CHAPTER 1:- INTRODUCTION

COMPANY HISTORY

VE Commercial Vehicles Limited is a joint venture between the Volvo Group (Volvo) and
Eicher Motors Limited (EML). It is a partnership that brings together Global leadership in
technology, quality, safety and environmental care, along with the deep knowledge and
understanding of the Indian Commercial Vehicle (CV) market. VE Commercial Vehicles
Limited. (VECV) owes its inception to the compelling intent of driving modernization in
commercial transportation, in India and other developing markets.

In 2005 Eicher Motors Ltd sold their tractors and engines business to TAFE Tractors (Tractors
And Farm Equipment Ltd) of Chennai, the Indian licensee of Massey Ferguson tractors.

In October 1982 a collaboration agreement with Mitsubishi for the manufacture of Light
Commercial Vehicles was signed in Tokyo and in the same period the incorporation of Eicher
Motors Limited also took place. In February 1990, Eicher Goodearth bought 26% stake
in Enfield India Ltd and by 1993 Eicher acquired a majority stake (60% equity shareholding) in
Royal Enfield India.

In July 2008, EML and Volvo Group's 50:50 joint venture VE Commercial Vehicles (VECV)
designs, manufactures and markets commercial vehicles, engineering components and provides
engineering design.

ETB, completed 30 years of operations in India in the month of June 2016. The first Eicher
truck was rolled out from its manufacturing plant in Pithampur, Madhya Pradesh in 1986 and
over the past 29 years, the products have got endorsement from happy customers of over
400,000 vehicles.

Eicher unveiled its entire new range of future generation trucks and buses at an impressive
product reveal function in Pithampur on December 2, 2013. The all new product range has been
named the "Eicher Pro'' series. Adopting the most professional and holistic approach to
modernise the Indian trucking industry, the new brand philosophy is to "Go Pro"; that is to give
Indian trucking a truly professional offering which will lead to higher productivity, profitability
and prosperity for the customer.

The VE Commercial Vehicles Limited (A Volvo Group and Eicher Motors joint venture) a
renowned commercial vehicle manufacturer. The organization drives its strength from its
Vision, Passion, Excellence, Innovation, Determination and Inspiration. Eicher is committed to
address issues of automotive, transportation and logistics sector related to skill gap and
competency.

VE Commercial Vehicles Limited (VECV) is a 50-50 joint venture between the Volvo Group
and Eicher Motors Limited. In operation since July 2008, the company includes the complete
range of Eicher trucks and buses, Eichers components and engineering design services
businesses as well as the sales and distribution business of Volvo trucks within India. VECV
aims to become a full-range commercial vehicle company whose products will drive
modernization in commercial transportation in India and other emerging world markets.

ETB, completed 30 years of operations in India in the month of June 2016. The first Eicher
truck was rolled out from its manufacturing plant in Pithampur, Madhya Pradesh in 1986 and
over the past 29 years, the products have got endorsement from happy customers of over
400,000 vehicles.

Eicher strengths-

Leadership in LD/ MD segments

Specialist skills and experience in developing low cost, better performance products
Wide dealer network
After sales infrastructure for LD / MD
Cost effective operations

Volvo strengths-

Global expertise
Leadership in product technology
Good infrastructure in facilities
Well-defined processes and controls
Brand image and customer relationships.
 ORGANIZATION STRUCTURE

GENERAL MANAGER

MANAGING DIRECTOR

DEPUTY GENERAL
MANAGER

REGIONAL MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR ASSISTANT

JUNIOR
FINANCIAL ASSISTANT
HIGHLIGHTS AT A GLANCE
 VISION & MISSION

VISION-

To be recognised as the industry leader driving modernization in commercial transportation

in India and the developing world.

MISSION-

VECV aims to continuously improve transportation efficiency in India and developing markets,
thereby reducing logistics costs for goods and people leading to higher enablement of
specialisation in manufacturing, agriculture and services, thereby increasing the nation's
economic activity and productivity.

We choose to do this in a sustainable manner by having the safest, most durable and
efficient products in the market;

We care for our customers holistically by offering not just trucks and buses, but also the
best service and soft products to enable him to be most profitable;

We work with the driver community to enhance their productivity and overall working
environment;

We ensure a level of quality and innovation that will continue to set standards in the
commercial transportation industry.

We work with professionalism, passion and the greatest respect for all individuals.

GOING FORWARD-
VECV aims to emerge as an industrial leader in driving modernization in
commercial vehicle transportation in India and the developing world by
bring about improvement in transport efficiencies.

In the near course, VECV will strengthen each of its product brands as
leaders in their respective segments through innovative products and
expansion of its existing network spanning the geographical expanse of the
country.

BOARD OF DIRECTORS
MILESTONES
 1948: Goodearth Company set up to sell and service imported tractors.

195257: Goodearth Company imported and sold about 1500 tractors in India.

1958: Eicher Tractor Corporation of India Ltd. Incorporated.

1959:First indigenous Eicher tractor built. Eicher came out with Indias first indigenously
built tractor from its Faridabad factory.

1987: Eicher Tractors went public

1990: Eicher Goodearth buys 26% equity stake in Enfield India Ltd.

1991: ECS launched; Eicher takes over Ramon & Demm.

1992: Eicher Tractors Ltd. selected as Company of the Year for 199091 in the four
wheeler category comprising commercial vehicles, passenger cars, jeeps and tractors.

1993: Eicher adopts new identifier.Eicher acquires majority stake in Enfield India (60%
equity shareholding)

1994: Eicher Motors Ltd. ends the technical assistance agreement with Mitsubishi after a
successful transfer of technology and achieving total indigenisation. Enfield India Ltd.
changed its name to Royal Enfield Motors Ltd.

2005: Eicher Motors Ltd. has disinvested the businesses of tractors and engines to TAFE
Motors & Tractors Ltd. (TMTL).

2008: Volvo Group and Eicher Motors Ltd. established VE Commercial Vehicles Limited
(VECV).

2010: The company launched the VEseries of Heavy Duty trucks

2010 : Eicher Motors launched the VEseries of Heavy Duty trucks

2011: Reliability Lab Inauguration

2012: JanuaryBhoomipujan of Dewas plant 2

2012: FebruaryInauguration of engine plant building

2012: November Inauguration of a new paint shop

2013: Inauguration of Dewas Plant 2

2013: Start of production of Euro 6 engine manufacturing plant

 2013: Eicher unveils the future of Indian trucking with the all new Pro series

2013: VEPT Pithampur inauguration

2013: Start of cabin production in body shop

2013: Start of production at Bus body plant at Baggad (MP)

2013: EEC gear plant, Dewas Unit II inauguration

2014: Inauguration of Eicher retail excellence center (VECV academy)

2014: Volvo Trucks launch of new range of products comprising FH, FM and FMX

2015: Inauguration of Customer Experience Center and Vehicle display zone.

VALUE SYSTEMS
RESPECT-
"In an enabling environment that recognizes, embraces and celebrates differences, at VECV
respect to all our stakeholders is a central belief that makes us deliver on our promises and hold
ourselves accountable to all commitments."

FAIR AND ETHICAL-

To build and sustain our reputation for the long term at VECV". We strive to conduct our
business with integrity, treat everyone fairly and be reasonable and ethical in all our dealings.

EXCELLENCE-
"Reflecting our power and heritage of delivering supreme quality and achieving ambitious goals
at VECV". We constantly challenge ourselves to innovate for the future and strive
uncompromisingly to develop new standards for meeting and exceeding customer
expectations.

CUSTOMER CENTRIC-
"The customers point of view is central to our organizational process, and with a proactive focus
on his/her changing needs, coupled with consistently excellent service, at VECV we aim to
create a mutually beneficial long term relationship with our customers."

PASSION-
"At VECV we revel in our work and strongly believe in making a difference to our customers
by walking the extra mile. This passion inspires us to demonstrate constant enthusiasm and
unlimited drive to deliver beyond our stakeholders expectations."
AWARDS AND RECOGNITION

'Safe Driving'
Awarded at International Road Safety Film Festival, New Delhi, 2007
 'Safe Transportation of Hazardous Goods'
Awarded at Global Road Safety Awards, Paris, 2008

'PehlaQadam Safe Roads Safe Kids'

Awarded at Global Road Safety Film Festival, Marrakech, 2010

ICV People Mover of The Year - EICHER Skyline PRO

Eicher Pro 1110XP Won The ICV Cargo Carrier Of the Year Awards at CV Awards 2015

New Volvo FMX Tipper Won The HCV Tipper Of The Year Award at CV Awards 2015

PRODUCTS OVERVIEW

TOURIST BUSES-
The Built-Up bus from eicher -Skyline LIMO-AC Bus for the Tourist Segment. Eicher Skyline
has established new benchmarks in the Bus Industry. Aesthetic superiority, high passenger
comfort & Economical performance have made this bus class apart. With a new offering in the
7.5 ton category with Direct drive AC and Push Back seats, Eicher Skyline LIMO is all set to
redefine the travel for the the Tourist Segment.

SCHOOL BUSES
Eicher introduced "The First Safe School Bus" in India, developed in association with IRTE
(Institute of Road Traffic Education) in the year 1996, thereby pioneering the concept of School
Bus. The school bus specific features have now become a norm in the industry. Apart from
being safest the school buses are now available in enhanced features, superior aesthetics &
increased passenger comfort.

SKYLINE PRO 3008 SCHOOL BUS 61 SEATER

SKYLINE AC SCHOOL BUS 40 & 47 SEATER

SKYLINE COLLEGE BUS 40 SEATER

SKYLINE SCHOOL BUS 83 SEATER
STARLINE SCHOOL BUS 20 & 23 SEATER

STAFF BUSES
Eicher buses has made staff commutation as comfortable as it can be. Aesthetic superiority, high
passenger comfort & Economical performance has made this bus class apart. The faith of
customers & industry is reflected with various industry rewards.
SKYLINE STAFF BUS 32 SEATER
SKYLINE AC STAFF BUS 32 SEATER
SKYLINE STAFF BUS 60 SEATER
SKYLINE PRO STAFF BUS 36/44 SEATER
STARLINE STAFF BUS 12/16/20 SEATER MAXICAB

ROUTE PERMIT BUSES

Eicher Offers a wide range of chassis for Route permit (Stage Carriage) deployments. Eicher
products are well suited for the unique requirement of the route permit application, which
necessitates a frequent start-stop operation, overload and rugged usage.

10.50 C/10.50 E BUS CHASSIS

10.75 E/10.75 HAC BUS CHASSIS
10.90 L BUS CHASSIS
12.12 K BUS CHASSIS
20.15 H BUS CHASSIS

UNITS OF VECV
Operational since July 2008, VE Commercial Vehicles Ltd. (VECV) comprises of five business
verticals Eicher Trucks and Buses, Volvo Trucks India, Eicher Engineering Components and
VE Powertrain. VECV includes the complete range of Eicher's commercial vehicles,
components and engineering design businesses as well as the sales and distribution of Volvo
trucks. Each of its 'business units is already well established and backed by a sizable customer
base.

EICHER TRUCKS AND BUSES-

ETB, completed 29 years of operations in India in the month of June. Eicher Trucks and Buses
(ETB) is present in the LD/MD segment with a strong presence in the 5T-49T truck segment
and 15-65 seater buses. Eicher unveiled its entire new range of future generation trucks and
buses at an impressive product reveal function in Pithampur on December 2, 2013. The all new
product range has been named the Eicher Pro series. Adopting the most professional and
holistic approach to modernise the Indian trucking industry, the new brand philosophy is to Go
Pro. Eichers new Pro series trucks and buses promise to deliver best-in-class fuel efficiency,
higher loading capacity, superior uptime and overall vehicle life time profitability.

VOLVO TRUCKS INDIA

Volvo Trucks in India is synonymous with the mining and the construction industries. Volvo
Trucks in India is the first truck manufacturer to introduce the European design, high
performance trucks with the latest technologies.

Founded in 1927, Volvo is one of the world's leading manufacturers of heavy commercial
vehicles and diesel engines. The Volvo Group also offers a comprehensive range of customised
solutions in financing, leasing, insurance and service, as well as complete transport systems for
urban traffic.

Volvo trucks are sold and serviced in more than 130 countries around the world, through over
650 dealerships and 1,450 workshops.More than 90% of the trucks we build are in the heavy-
weight class, over 16 tons, which makes Volvo Truck Corporation the second largest heavy-duty
truck manufacturer in the world.Altogether, we have nine assembly plants around the world, as
well as eight factories owned by local partners.

It's been over 85 years since the first Volvo truck was built back in 1928. Today Volvo Trucks is
the second-largest heavy-duty truck brand in the world; more than 95% of the trucks we build
are in the heavy weight class above 16 tonnes. Our trucks are sold and serviced in more than
140 countries all over the world.

EICHER ENGINEERING COMPONENTS-

Eicher Engineering Components (EEC) is the automotive components division of VECV (VE
Commercial Vehicles Limited), a Volvo Group and Eicher Motors joint venture.

EEC came into existence in 1992 in a take-over from Ramon &Demm, Thane.

Ramon & Demm plant was originally set up in 1964 in technical collaboration with "Fratelli
Daldin & Matteucci" of Italy - the makers of the famed "DEMM" brand gears - and it was the
first gear manufacturing facility in the auto-ancillary sector in India.

In the ensuing years, EEC has grown from strength to strength and is one of the leading gear
manufacturers in India. The company has achieved excellence in manufacturing Power-train
components (Differential Gears, Transmission Gears & Shafts and Engine Gears) and Gearbox
Assemblies for a worldwide clientele in the OEM and in the Aftermarket space. The company
has made space at many reputed OEMs which have global presence including India.

In recent years, the group has continually invested in innovation, technology and expansion. As
a result, the units continue to expand their capacities and efficiency, while adhering to their core
principal of quality and manufacturing excellence.

EICHER ENGINEERING SOLUTIONS-

Eicher Engineering Solutions (EES), a unit of VE Commercial Vehicles, is engaged in providing
design and engineering services to its customers worldwide. Backed by four decades of design
and development experience in automotive domain, EES has helped its clients achieve lower
cost, enhanced productivity, improved reliability and innovative products.

EES was created in 1997 as "Center of Excellence" for providing engineering & design support
for captive requirements. This Center consisted of a team of well qualified engineers possessing
expertise in Design and Analysis for passenger cars, commercial vehicles, farm equipment &
Heavy Engineering industry. Growing rapidly over the years, EES team strength is presently
over 200 spread over four locations across the globe (1 in India @ Gurgaon, 1 in US @ Detroit
and 2 in China @ Beijing & Shanghai).

SWOT ANALYSIS
Strengths
 One of the leading manufacturers having established brand and extensive dealer
network
Company having established brand and extensive dealer network.
Tie up with Volvo would enhance presence in CV market
Company is the quality conscious in term leveraging the customer satisfaction

Weakness
Minimal presence in the fast growing LCV goods segment
Having manufacturing presence in only one location
Lack of captive financing
The working environment is good but the process is a little slow that is why sometimes
it takes time to complete.

Opportunities
Company will get access to the global market after incorporating this strategic alliance
activity through joint venture
Use of Volvo overseas network to boost exports
Increased sourcing by Volvo from VECV (e.g. engines)
Increasing share of road in freight movement

Threats
The prevalent fierce and aggressive competition in the automobile industry.
Intense competition from existing players
Global players entering the market would further aggravate competition
 CHAPTER 2:- MethodologyIntroduction of the project

THE STUDY AND ITS OBJECTIVES

Training is must in any professional course as student along with theoretical knowledge get
aware of its practical application also. Summer training is an integral part of our academic
curriculum. The objective of this training is:-

To understand about tooling project procedure.

To understand goods entry and good received procedure.
To understand documentation in finance department.
To make Controlling and Repeatable processes.
To identify relevant document for each activity.
To analyze the financial statement with the help of ratios.

In bus body plant company create a bus structure, company needs parts which
specially made by some specific type of tooling for concern tooling is given by
the company, and vendor use this tooling for making of parts.

One bus required around 1700 parts, there is work of assembling of parts and
making bus body structure, this bus body plant has an integrated facility for the
assembly of bus chassis.it houses all that is required to design, test, produce
and service a commercial vehicles.

In bus body plant structure of bus is made, for making of it company requires
parts of bus according to bills of material, bill of material is created by the
mechanical team, some special part requires tooling which is giving by the
company, then technical service department give IPR which is investment
purchase requisition, which contains at least 3 quotation must be present, then
company choose most optimal quotation, and generate purchase order (PO).

Some parts required special type of tooling and company give this tooling to the vendor and
vendor use this tooling making parts which is required by the company, some of tooling is
not used by the company and company kept data in system network which is SAP system
application programme but record of procurement of tooling is also required and company
have to amortization that value of tooling. So here i have an analysis of data are as follows
which is provided by the company.

Tooling Net price Quantity

Tooling Given 11087647 1585
7.4
Tooling Utilized 70107299 975
.04
Tooling not Utilized 40769178 610
.31
(SOURCE: SAP network software of vecv)
Below chart and graph is actual data of tooling given and utilization of
tooling vendor wise(in Qty.):-

Tooling Tooling Tooling Percentage

Name of vendors Given(No Utilized(N Unutilized(No of Utilized
s.) os.) s.)
VASANT INDUSTRIES 388 336 52 87%
Audi Automobiles 365 202 163 55%
Sadashiv Engineers Pvt 266 133 133 50%
Ltd
MIGMA PACKTRON 235 211 24 90%
Belmarks Metal India 99 28 71 28%
Limited
Trac Auto Transmission 77 0 77 0%
Metal Profile 56 0 56 0%
Rohit press comp Pvt. 21 13 8 62%
Ltd.
JBM Auto Limited 19 2 17 11%
Godson bending system 16 16 0 100%
Premium Plast Pvt. Ltd 11 9 2 82%
J S AUTOMOTIVES 8 8 0 100%
Indo Toolings Pvt.Ltd 6 3 3 50%
SANJAY POLYMERS 6 4 2 67%
J.M. INDUSTRIES 5 5 0 100%
IAC international 4 4 0 100%
Automotive
JBM Auto Ltd 2 0 2 0%
Techforce Wayand 1 1 0 100%
Pvt.Ltd
TOTAL 1585 975 610
Below chart and graph is actual data of tooling given and utilization of
tooling vendor wise(in Value):-

Name of vendor Tooling Tooling Tooling % of

Given Utilized(Va Unutilized(Va utilized
lue) lue)
Godson Bending Pvt. Ltd. 2,85,80,000.0 2,85,80,000 0 100%
0 .00
Belmarks Metal India Ltd. 1,34,89,630.1 44,07,810.0 90,81,820.18 33%
8 0
MIGMA PACKTRON 1,31,33,568.2 1,15,73,194 15,60,373.72 88%
8 .56
JBM Auto Limited 1,23,69,549.0 2,32,000.00 1,21,37,549.0 2%
0 0
Indo Tooling Pvt Ltd. 75,59,000.00 48,69,000.0 26,90,000.00 64%
0
Audi Automobiles 71,92,170.89 26,94,099.9 44,98,070.91 37%
8
Sadashiv Engineers Pvt 46,39,538.00 20,34,465.0 26,05,073.00 44%
Ltd. 0
Techforce Wayand 46,00,000.00 46,00,000.0 0 100%
Pvt.Ltd 0
VASANT INDUSTRIES 43,20,994.00 38,70,181.5 4,50,812.50 90%
0
Trac Auto Transmission 37,67,649.00 0 37,67,649.00 0%
Premium Plast Pvt. Ltd 33,58,000.00 28,38,000.0 5,20,000.00 85%
0
Metal Profile 24,39,455.00 0 24,39,455.00 0%
J S AUTOMOTIVES 22,84,048.00 22,84,048.0 0 100%
0
IAC international 16,00,000.00 16,00,000.0 0 100%
Automotive 0
JBM Auto Ltd 8,00,000.00 0 8,00,000.00 0%
Rohit Press Comp Pvt. 3,82,375.00 2,24,000.00 1,58,375.00 59%
Ltd.
SANJAY POLYMERS 2,70,000.00 2,10,000.00 60,000.00 78%
J.M. INDUSTRIES 90,500.00 90,500.00 0 100%
TOTAL 11,08,76,47 7,01,07,29 4,07,69,178.31
7.35 9.04
(SOURCE: SAP network software of vecv)

Below we segregated unutilized tooling in year and vendor wise;-

In 2013

Name of vendors Qty Value

Trac Auto 21 5,19,000
Transmission
Total 21 5,19,000

In 2014

Name of vendor Qty Value

Trac Auto Transmission 56 32,48,649
.00
Belmaks Metal India 8 14,00,000
Limited .00
Sadashiv Engineers Pvt L 62 11,87,875
.00
MIGMA PACKTRON 12 10,42,022
.00
Audi Automobiles 23 7,86,267.
91
Premium PlastPvt. Ltd 2 5,20,000.
00
VASANT INDUSTRIES 38 3,85,338.
00
SANJAY POLYMERS 2 60,000.00
Total 203 86,30,15
1.91
In 2015

Name of vendors Qty Value

Belmaks Metal India 63.00 76,81,820.1
Limited 8
JBM Auto Limited 4 30,77,999.0
0
Indo ToolingsPvt.Limite 3.00 26,90,000.0
0
Sadashiv Engineers Pvt L 71 14,17,198.0
0
Metal Profile 9 3,85,827.00
MIGMA PACKTRON 3.00 2,47,156.28
Audi Automobiles 18.00 1,37,444.00
VASANT INDUSTRIES 11.00 25,374.50
Total 182.00 1,56,62,81
8.96

In 2016

Name of vendors Qty Value

JBM Auto Limited 13.0 90,59,550.
0 00
Audi Automobiles 122. 35,74,359.
00 00
Metal Profile 47.0 20,53,628.
0 00
JBM Auto Ltd 2.00 8,00,000.0
0
MIGMA PACKTRON 9.00 2,71,195.4
4
ROHIT PRESS COMP 8.00 1,58,375.0
PVT LTD 0
VASANT INDUSTRIES 3.00 40,100.00
Total 204. 1,59,57,2
00 07.44
Tooling unutilized:-

Year Qty Value

2013 21 5,19,000
2014 203 86,30,151.91
2015 182.00 1,56,62,818.96
2016 204.00 1,59,57,207.44
Total 610 4,07,69,178.31
(SOURCE: SAP network software of vecv)
 The sample

The sample has been taken from 2013 to till date and it is obtained from SAP
system application programme.

The tool

Data is collected and futher interpreted by chart and pivot table.

CHAPTER 3:-Result
Graph is actual data of tooling given and utilization of tooling vendor
wise(in Qty.):-
 450 388
400 365
350
300 266
235
250
200
150 99
100 77
56
50 Tooling Given Tooling
21 utilized
19 16 11 8 Tooling
6 6
Ununtilized
5 4 2 1
0

(SOURCE: SAP network software of vecv and analysis in ms excel software)

Vasant industries has received highest amount of tooling and also has
highest amount of procurement of tooling.
Audi automobiles has second highest amount of tooling but procurement is
low amount so this vendor has much amount of tooling which is to payoff by
the vendor in near future.

Graph is actual data of tooling given and utilization of tooling vendor

wise(in Value):-

35,000,000.00

30,000,000.00

25,000,000.00

20,000,000.00

15,000,000.00

10,000,000.00
Tooling Given Tooling Utilized(Value) Tooling Unutilized(Value)
5,000,000.00

(SOURCE: SAP network software of vecv and analysis in ms excel software)

Godson bending system has received highest amount of value of tooling and this
company utilised all tooling for the parts.
Belmark metal india ltd have second highest in value wise but this vendor utilized low
amount of given tooling.
BALANCE SHEET
PARTICULAR Mar. 2016 Dec. 2014
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 27.16 27.1
Total Share Capital 27.16 27.1
Reserves and Surplus 3437.13 2488.76
Total Reserves and Surplus 3437.13 2488.76
Total Shareholders Funds 3464.29 2515.86
Minority Interest 1156.85 1085.06
NON-CURRENT LIABILITIES
Long Term Borrowings 0 0
Deferred Tax Liabilities [Net] 338.18 239.35
Other Long Term Liabilities 15.85 16.87
Long Term Provisions 136.44 72.83
Total Non-Current Liabilities 490.47 329.05
CURRENT LIABILITIES
Short Term Borrowings 85.87 58.36
Trade Payables 2509.32 1512.67
Other Current Liabilities 688.93 658.1
Short Term Provisions 83.02 248.47
Total Current Liabilities 3367.14 2477.6
Total Capital And Liabilities 8478.75 6407.57
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2547.68 1981.09
Intangible Assets 356.11 328.24
Capital Work-In-Progress 117.91 236.34
Intangible Assets Under Development 291.88 182.46
Fixed Assets 3313.58 2728.13
Non-Current Investments 928.5 160.6
Long Term Loans And Advances 512.91 478.07
Other Non-Current Assets 89.77 7.67
Total Non-Current Assets 4844.76 3374.47
CURRENT ASSETS
Current Investments 709.78 917.09
Inventories 1014.31 645.52
Trade Receivables 833.61 562.17
Cash And Cash Equivalents 591.43 480.58
Short Term Loans And Advances 475.68 379.7
OtherCurrentAssets 9.18 48.04
Total Current Assets 3633.99 3033.1
Total Assets 8478.75 6407.57
(SOURCE: Annual report of vecv)

PROFIT AND LOSS ACCOUNTS

PARTICULAR Mar. 2016 Dec. 2014
INCOME
Revenue From Operations [Gross] 16,915.66 9,212.12
Less: Excise/Sevice Tax/Other Levies 1,496.14 613.42
Revenue From Operations [Net] 15,419.52 8,598.70
Other Operating Revenues 259.83 139.62
Total Operating Revenues 15,679.35 8,738.32
Other Income 121.29 107.44
Total Revenue 15,800.64 8,845.76
EXPENSES
Cost Of Materials Consumed 8,568.83 4,904.29
Purchase Of Stock-In Trade 1,840.71 946.41
Changes In Inventories Of FG,WIP And Stock-In Trade -288.31 -84.72
Employee Benefit Expenses 1,057.48 659.64
Finance Costs 9.04 9.78
Depreciation And Amortisation Expenses 451.66 219.82
Other Expenses 2,062.73 1,197.92
Total Expenses 13,702.14 7,853.14
Profit/Loss Before Exceptional, ExtraOrdinary Items 2,098.50 992.62
And Tax
Profit/Loss Before Tax 2,098.50 992.62
Tax Expenses-Continued Operations
Current Tax 650.41 284.89
Less: MAT Credit Entitlement 108.39 52.91
Deferred Tax 104.54 58.9
Total Tax Expenses 646.56 290.88
Profit/Loss After Tax And Before ExtraOrdinary 1,451.94 701.74
Items
Profit/Loss From Continuing Operations 1,451.94 701.74
Profit/Loss For The Period 1,451.94 701.74
Minority Interest -174.06 -86.38
Consolidated Profit/Loss After MI And Associates 1,277.88 615.36
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 471 227
Diluted EPS (Rs.) 469 226
DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 271.61 135.52

Tax On Dividend 55.29 27.1

(SOURCE: Annual report of vecv)

-Financial Ratios are summarized below

 Current Ratio:-

Current Ratio
1.4 1.31
1.2
0.98
1
0.8
0.6
0.4
0.2
0
Mar 16 Dec-14

Current ratio measures the liquidity of a company. As this ratio is decreasing

which means solvent position of a company is decreasing.

Quick Ratio:-
 Quick Ratio
1.2 1.09
1
0.8 0.73

0.6
0.4
0.2
0
Mar 16 Dec-14

Quick ratio indicates company ability to meet current obligations. This ratio is
also decreasing which indicates firms liquidity position is not good.

Inventory Turnover Ratio:-

 Inventory Turnover Ratio
25
20.6
20
14.78
15

10

0
Mar 16 Dec-14

Every firm has to maintain a certain level of inventory to be able to meet the
requirement of the business. This ratio is increasing which indicates order of
inventory is more due to more demand.

Net Profit Margin Ratio:-

 Net Profit Margin (%)
20 19.87

19.5

19
18.43
18.5

18

17.5
Mar 16 Dec-14

Net profit indicates the efficiency of management in manufacturing,

administrative and selling activities of the firm. This ratio is increasing by
1.47% overall profitability is increasing as compare to previous year.

Return on Equity:-
 Return on Equity (%)
60 55.35

50 43.93
40

30

20

10

0
Mar 16 Dec-14

This ratio is important yard stick of performance for equity shareholders

since it indicates the return on funds employed by them. This ratio is
increasing in current year so this will attract the equity shareholders

EPS
 EPS (Rs.)
500 453.2
450
400
350
300
250 206.38
200
150
100
50
0
Mar 16 Dec-14

EPS of the company is also increasing this will also attract investors

CHAPTER 4
0SUGGESTION AND CONCLUSION
Effective and efficient vendor billing process process reduce cycle time
Convert all invoices into standard format electronic files and data that can
be accessed from any desktop, at any time, by anyone who is authority
 Prompt payment enable early payment discounts, reduce duplicate payment
caused by suppliers resending overdue invoices, enhance visibility and
improve control
Share of information and priorities the most important factor of vendor
management is to share information and priorities with your vendors.
Balance commitment and competition one of the goals is vendor
management is to share gain the commitment of your vendors to assist and
support the operations of your business. on-the-other-hand, the vendor is
expecting a certain level of commitment from you, this does not mean that
you should blindly accept the price they provide. Always get competitive
bids.
Build partnership for long term vendor management seeks long term
relationship over short term gains and marginal cost savings.
Seek to understand your vendors business asking questions of your
vendors will help you understand their side of the business and build a
better relationship between the two.

conclusion

One of the goals in vendor management is to gain the commitment of your

vendor to assist and support the operations of your business. On the other
hand ,the vendor is expecting a certain level of commitment from you.this
does not mean that you should blindly accept the prices they provides.
Always get competitive bids.
The VE joint vrnture demonstrate that partners have convergent objective in
terms of wanting to crack into indias large commercial vehicle market
segment.

CHAPTER 5:- Implication of the study

This study is useful for the current employees of bus plant and its clearly shows
the tooling costing and financial analysis of eicher motors
REFERENCES

www.vecommercial.com

www.moneycontrol.com

Financial management by Kishore

Annual report of Volvo Eicher Ltd.