SUMMER INTERNSHIP PROJECT AT

Perfect Auto Services Nexa

(Automobile Industry)

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

degree Of

MASTER OF BUSINESS ADMINISTRATION

BATCH (2021-23)
Submitted by Name of the Industry
Digvijay Singh Rawat Automobile Industry
MBA Semester 3
210614200383

Under the Guidance of

Prof. Paresh Patel

Assistant Professor

PARUL University

FACULTY OF MANAGEMENT STUDIES

P.O. Limda, Tal. Waghodia, District Vadodara-391760
 Declaration

I Digvijay Singh Rawat, Enrollment No. 210614200383 from PIET MBA,

Semester - III of the Parul University, Vadodara hereby declare that a report
based on summer internship at “Perfect Auto Services NEXA “is an original
work and the same has not been submitted to any other Institute for the award of
any other degree.

Date: 29/07/2022 Digvijay Singh Rawat

 INSTITUTE CERTIFICATE

It is hereby certified that the Summer Internship Report submitted in partial

fulfillment of Master of Business Administration at PIET Parul University,
Vadodara by Digvijay Singh Rawat Enrollment No. 210614200383 has been
completed under my guidance and is Satisfactory.

Date: 29/07/2022

Signature of the Guide Signature of the Director

Prof. Paresh Patel Dr. Bijl Zaveri
Assistant professor Director
 PREFACE

Parul Institute of Management and Research is the pioneer to introduce the master label
course in Business Administration area in Vadodara. MBA is a two year’s degree course
which provides the students practical knowledge along with theoretical aspects.

In this era of globalization where every minute India is moving a step ahead and expanding it
horizontally, management is India is heading towards a profession. The demand for
management’s professionals is increasing day by day. In such competitive surroundings, it
becomes a requirement to have an edge over others and MBA is such a course, which helps
and assists students in doing that.

The practical studies are treated as a different subject in MBA which helps the students in
practically applying their theoretical knowledge. It helps us to face competition, builds up our
confidence and also add something to our personality. Over and above in this fast-moving
economy, here practical studies play an important role in our carriers.

This project report has been prepared in partial fulfillment of the requirement for the Summer
Internship Project of the MBA in Finance Semester III in the academic year 2021-2023

For preparation of this project report, I have completed the summer internship program from
“PERFECT AUTO SERVICES NEXA”
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals. I would like to extend
my sincere thanks to all of them. I am highly indebted to for their guidance and
constant supervision as well as for providing necessary information regarding
the project & also for their support in completing the project. I would like to
express my gratitude towards my parents and teachers for their kind co-
operation and encouragement which help me in completion of this project.

I am thankful to Dr. Bijal Zaveri (Dean of FMS) for providing us guidance and
the opportunity to gain theoretical knowledge. I am also thankful to Prof. Paresh
Patel (Assistant Professor) who have also helped supported us as faculty guide.

I am greatly indebted to all Professors, Guide, who has been continuous source
of inspiration right from the conception of the report to its completion. I am
also thankful to them for their timely guidance and providing a helpful
environment to make this report a success.
 Executive Summary

This project is attempted to apply theories to practical knowledge about a firm and industry.
As a student of MBA, we all have to undergo Summer Internship Training at a good
firm/industry. Earlier it was not possible due to pandemic but now it is possible from this
batch of 2022.

We are glad that we got this opportunity to physically attend the training in the firm.

NEXA has always been about creating premium automotive experiences. Having an ever-
evolving and premium audience has always motivated NEXA to innovate and create new
experiences. 1.5 million Sales. 1.5 million Stories. NEXA was born with a dream to create
and inspire premium automotive experiences.

Nexa are exclusive showrooms of Maruti Suzuki that guarantee you an exclusive premium
experience. They are different from regular car showrooms and claim to give more
personalized premium experience. Currently many cars are available exclusively in Nexa.

The purpose of this study is to analyze NEXA as a Premium Brand. It is known that Maruti
Automobile Brands are not seen as a Premium Brands. NEXA is a differentiated and leading
Indian brand which is acquiring a good amount of reputation and huge number of sales in the
Indian Market, which was the main target market from the inception of NEXA.
SR.NO TABLE OF CONTENT Page.
No

Chapter-1 INTRODUCTION STUDY 1

1.1 Introduction 1

1.2 Growth and Evolution of industry in India 5

1.3 Industry Analysis: Michael porter’s five force model 10

Chapter-2 Company Study 13

2.1 Introduction 13

2.1.1 Vision 14

2.1.2 Mission 14

2.1.3 Goals 14

2.1.4 Objective 16

2.2 Organizational structure 16

2.2.1 Board of directors 18

2.3 Key Executive team 19

2.4 Product/Service offered 20

2.5 Key financial/Operational result for last 5 years 21

2.5.1 Overall financial/Operational performance of the company /Institution 22

2.6 Milestones Achieved 23

2.6.1 Awarded received 23

Chapter-3 Departmental Study 24

3.1 Departmental/Area of study 24

3.1.1 Activities of Department/Area under study 25

3.1.2 Document maintained for planning, Staffing, Directing and Controlling 27
purpose by

Department /Operational areas

3.2 Interdependence of department /Area under study with other department 28

/operational areas

3.3 SWOT Analysis of Activities of Department/Area under study 29

Chapter-4 Work/Assignments/Training 33

4.1 Objective 33

4.2 Data of work/Assignments/Training 34

4.3 Analytical study of work/assignment/training 35

4.4 Conclusions 38

4.5 Suggestions 40

4.6 Outcome of the SIP study 42

 CHAPTER-1

INDUSTRY STUDY

1.1 INTRODUCTION

Textile Industry in India is the second largest employment generator after

agriculture. It holds significant status in India as it provides one of the most
fundamental necessities of the people. Textile industry was one of the earliest
industries to come into existence in India and it accounts for more than 30% of the
total exports. In fact Indian textile industry is the second largest in the world, second
only to China.

Textile Industry is unique in the terms that it is an independent industry, from the
basic requirement of raw materials to the final products, with huge value-addition
at every stage of processing. Textile industry in India has vast potential for creation
of employment opportunities in the agricultural, industrial, organized and
decentralized sectors & rural and urban areas, particularly for women and the
disadvantaged. Indian textile industry is constituted of the following segments:
R e a d y m a d e Garments, Cotton Textiles including H a n d - l o o m s , Man-made
Textiles, Silk Textiles, Woolen Textiles, Handicrafts, Coir, and Jute, till the year
1985, development of textile sector in India took place in terms of general policies.
In 1985, for the first time the importance of textile sector was recognized and a
separate policy statement was announced with regard to development of textile
sector. In the year 2000, National Textile Policy was announced. Its main
objective was: to provide cloth of acceptable quality at reasonable prices for the
vast majority of the population of the country, to increasingly contribute to the
provision of sustainable employment and the economic growth of the nation; and
to compete with confidence for an increasing share of the global market. The policy
also aimed at achieving the target of textile and apparel exports of US $ 50 billion by
2010 of which the share of garments will be US $ 25 billion. The textile industry
is anticipated to generate 12mn new jobs in various sectors. Till the year 1985,
development of textile sector in India took place in terms of general policies. In
1985, for the first time the importance of textile sector was recognized and a separate
policy statement was announced with regard to development of textile sector.
In the year 2000, National Textile Policy was announced. Its main objective was:
to provide cloth of acceptable quality at reasonable prices for the vast majority of
the population of the country, to increasingly contribute to the provision of
sustainable employment and the economic growth of the nation; and to compete
with confidence for an increasing share of the global market. The policy also aimed
at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of
which the share of garments will be US $ 25 billion. The textile industry is
anticipated to generate 12mn new jobs in various sectors.
9
 1.2 Growth and evolution of industry in India

The textile industry in India has undergone significant growth and evolution over the years,
playing a crucial role in the country's economy, employment generation, and export earnings.
Here's an overview of the growth and evolution of the textile industry in India:
The textile industry in India continues to be a significant contributor to the country's
economy, providing employment to millions and contributing to exports.

A] Historical Background:

India has a rich history of textile production dating back thousands of years. It was a major
exporter of textiles to various parts of the world, known for its high-quality cotton and silk
fabrics.

The decline of the Indian textile industry during colonial rule, particularly due to British
policies, led to a loss of market share and industrial decline.

B] Post-Independence Growth:

After gaining independence in 1947, India focused on industrialization, and the textile industry
was one of the key sectors targeted for development.

The establishment of textile mills and production centers, along with policy support and
incentives, contributed to the growth of the industry.

1
 C] Evolution of the Textile Industry:

1) Traditional Hand-loom and Handicrafts: Hand-loom and handicraft sectors have been
an integral part of India's textile heritage. These segments continue to contribute to rural
employment and cultural preservation.

2) Modernization and Technology Adoption : The industry gradually embraced

modernization and technological advancements, leading to increased efficiency and
productivity.

3) Diversification : The industry expanded beyond traditional cotton and silk textiles to
include synthetic fibers, wool, and blends, catering to diverse consumer preferences.

4) Export Focus : India became a major player in the global textile market, exporting a wide
range of products including garments, fabrics, and home textiles.

5) Textile Clusters : Specific regions in India developed as textile clusters specializing in

particular types of textiles. Examples include Tirupur for knitwear, Surat for synthetic
textiles, and Panipat for home textiles.

6) Policy Reforms : Various policy measures aimed at boosting the textile sector's growth,
such as the Technology Upgradation Fund Scheme (TUFS) and the Goods and Services
Tax (GST) implementation.

7) Sustainability and Ethical Practices : As global awareness of sustainability grew, the

industry started focusing on environmentally friendly practices, ethical sourcing, and fair
labor standards.

1
 D] Challenges and Opportunities:

1) Competition : The industry faces competition from other textile-producing countries,

requiring continuous innovation and cost-effectiveness.

2) Skilled Labor : Ensuring a skilled workforce remains a challenge, especially as the

industry modernizes and embraces new technologies.

3) Sustainability : Balancing growth with environmental and social sustainability has

become crucial.

4) Supply Chain Integration : Integrating the supply chain and adopting advanced
technologies like AI and IoT for efficient production and distribution.

5) E-commerce : The rise of e-commerce has opened up new avenues for marketing and
sales of textiles.

E] Recent Developments:

1) The COVID-19 pandemic highlighted the need for agility and adaptability, with many
manufacturers pivoting to produce PPE and medical textiles.

2) Investments in research and development have led to innovations in fibers, fabrics, and
production processes.

3) Initiatives like "Make in India" and support for startup textile companies have aimed to
boost domestic manufacturing and innovation

1
1.3 Michael Porter’s Five Forces Model:

Force :1
Bargaining power of buyers :

1) Buyers of textile products can have varying degrees of bargaining power, depending
on factors like volume of purchase and differentiation of products.
2) Large buyers might have more negotiation power, especially if they are significant
customers for Alok Industries.
3) Differentiation of products, quality, and relationships could influence the extent of
buyer power in the industry.

Force: 2
Bargaining power of supplier:

1) Suppliers in the textile industry, such as cotton and synthetic fiber producers, can have
moderate bargaining power due to the availability of multiple suppliers and materials.
2) If Alok Industries has diversified its supplier base, negotiated favorable terms, or
vertically integrated, it could reduce supplier power.
3) Overall, the bargaining power of suppliers might be moderate in the industry.

Force: 3
Threat of New Entrants:

1) Alok Industries operates in the textile industry, which generally has a moderate
barrier to entry due to the availability of raw materials and basic manufacturing
capabilities.
2) However, established players like Alok have economies of scale, brand recognition,
and distribution networks that could deter new entrants.
3) Overall, the threat of new entrants in the textile industry might be moderate, but
existing players' advantages could provide a protective barrier.

1
Force: 4
Competitive Rivalry:

1) The textile industry can be highly competitive, with numerous players offering similar
products.
2) Rivalry is influenced by factors like price competition, product differentiation, and
market share.
3) ‘Alok Industries' market positioning, product quality, and customer relationships
could influence the intensity of rivalry it faces.

Force: 5
Threat of substitute products and services:

1) In the textile industry, the threat of substitutes can come from alternative materials
(e.g., synthetic fabrics) or changes in fashion trends.
2) Alok Industries' ability to produce unique and innovative fabrics, stay updated with
trends, and maintain brand loyalty could reduce the impact of substitutes.
3) The threat of substitutes might be moderate, influenced by the company's ability to
stay ahead of changing consumer preferences.

1
 CHAPTER - 2

COMPANY

STUDY

2.1 INTRODUCTION:

Alok Industries is a prominent and well-established textile company headquartered in

Mumbai, Maharashtra, India. With a rich history spanning several decades, the company
has played a significant role in the Indian textile sector, contributing to the country's
economic growth and global trade. Alok Industries operates within a diverse range of
textile segments, manufacturing and exporting various textile products that cater to both
domestic and international markets.

Company Background:
Founded in 1986, Alok Industries has grown from its modest beginnings to become a
leading player in the Indian textile industry. Over the years, the company has
demonstrated its commitment to innovation, quality, and sustainability, positioning itself
as a key player in the global textile market.

Product Range:
Alok Industries boasts a diverse and comprehensive product portfolio that encompasses a
wide array of textile offerings. From fabrics and yarns to apparel textiles and home
furnishings, the company's products cater to different segments within the textile industry.
This extensive range underscores Alok's ability to meet the evolving demands of
consumers while maintaining a reputation for quality and reliability.

Market Presence:
Alok Industries has not only established a strong domestic presence but has also earned
recognition on the international stage. With a focus on exports, the company has
successfully penetrated global markets, contributing to India's reputation as a textile
export hub. The company's ability to adapt to international trends and cater to the

1
preferences of diverse markets has been instrumental in its continued growth.

Innovation and Sustainability:

In an era marked by concerns over environmental sustainability and responsible business
practices, Alok Industries has demonstrated a commitment to incorporating eco-friendly
and sustainable measures into its operations. The company's efforts to adopt greener
manufacturing processes and implement ethical practices reflect its dedication to
addressing modern societal and environmental challenges.

Corporate Values:
Alok Industries places a strong emphasis on values such as integrity, customer focus, and
continuous improvement. These values permeate the company's operations, from
manufacturing to customer service, helping to build lasting relationships with
stakeholders and partners.

Future Prospects:
As Alok Industries continues to evolve and adapt to the changing dynamics of the textile
industry, its future prospects appear promising. The company's strategic initiatives,
innovative mindset, and commitment to quality position it to capitalize on emerging
opportunities and overcome challenges.

1
2.1.1 Company’s Vision:

 The vision statement for MARUTI SUZUKI COMPANY is its strategic plan for the
future – it defines what and where MARUTI SUZUKI COMPANY wants to be in the
future.

 The vision statement for MARUTI SUZUKI COMPANY is a document identifying

the goals of MARUTI SUZUKI COMPANY to facilitate its strategic, managerial, as
well as general decision-making processes.

 “The Leader in the Indian Automobile Industry, creating customer Delight and
Shareholder’s wealth; A pride of India” Core Values of MUL

1. Customer Obsession
2. Fast, Flexible, and First Mover
3. Innovation and Creativity
4. Networking and Partnership
5. Openness and Learning.

2.1.2 Company’s Mission:

“With no mission statement mentioned as such, still brands mission since its inception has been
“To motorize the country”.
1. Develop products of superior value by focusing on the customer
2. Establish a refreshing and innovative company through teamwork
3. Strive for individual excellence through continuous improvement

2.1.3 Company’s Goals:

1) Creating Value
2) Communicate Values
3) Delivering Values

1
Organizational goals
Organizational goals are those business and strategic objectives that define the purpose of
MARUTI SUZUKI COMPANY. Organizational goals are strategic targets that MARUTI
SUZUKI COMPANY wants to achieve over a period of time. This time period is generally
long term. The goals of MARUTI SUZUKI COMPANY help direct its employee behavior,
as well as help in directing the operations of the business in the short term.

1) Achievable:
The goals set by MARUTI SUZUKI COMPANY should be achievable. This means that
MARUTI SUZUKI COMPANY should have the resources and the finances necessary for
being able to realize the organizational goals over the long haul. MARUTI SUZUKI
COMPANY should also have the strategic leadership to be able to achieve these
organizational goals.

2) Time-frame defined:
All goals set by MARUTI SUZUKI COMPANY even for the long term – have an attached
time frame. This is important to ensure that the organization is effective and efficient in
realizing its goals.an attached time frame for the goals set for the long-term future also helps
in establishing a related time frame for the more short-term organizational objectives.

3) Easy to understand:
The goals should be fairly simple and should be easily understood by all employees of
MARUTI SUZUKI COMPANY. This is important as only when employees are clear about
what the goals are, their importance, and the urgency of achieving them will they be able to
relate with them and work towards achieving them.

4) Easy to communicate:
The goals set by MARUTI SUZUKI COMPANY should also be easy to communicate. This
means that the jargon used for goal setting and goal communication should be clear and
precise. These goals should be communicated with all managerial levels, and all employees
to allow them a directive path to help the organization achieve these goals.

5) Pragmatic: The goals set by MARUTI SUZUKI COMPANY should also be realistic
in nature. This means that all strategic goals defined by MARUTI SUZUKI
COMPANY should take into consideration not only its internal financial position and
resources but also the skill set of its employees and the larger macro environment.
This will enable the company to set goals that will sue the core competencies of
MARUTI SUZUKI to help it achieve the strategic goals easily, and realistically.

1
 6) Relation with job tasks:
All goals should be relatable with the employees of MARUTI SUZUKI COMPANY. This
means that all goals should directly or indirectly be tied to the job tasks and job nature of
employees. This is to ensure that employees don’t feel redundant and use their skills to help
the organization progress.

2.1.4 Company’s Objectives:

Organizational objectives for MARUTI SUZUKI COMPANY are the short to medium term
targets and goals that the organization sets to achieve the bigger strategic goals set for the
long term. The organizational objectives are important in shaping resource allocation within
MARUTI SUZUKI COMPANY as well as in determining the policies, schedules and
processes that are implemented in MARUTI SUZUKI GOOD COMPANY.
1) To give customer a memorable experience.
2) To get an edge over the competitors.
3) To sell high end vehicles.
4) To shed the image of small car makers.

2.2 Company’s Organizational Structure:

 The organization structure of Maruti is somewhat inclined towards a mechanistic

structure but it cannot be called absolutely because of presence of high degree of
decentralization. It has a functional structure with horizontal linkages. The functional
divisions finance, marketing, sales focus on their respective functions. These divisions
are further divided into 29 divisions. The hierarchy consists of a divisional head and
then a departmental head.

Mechanistic structure is suitable for those organizations which do not require frequent
changes in their processes and the environment is stable.

 Features Of Organization Structure at Maruti Suzuki:

1) The division of employees at six functional levels and their further hierarchical
divisions in different divisions mean that the company wants to achieve perfection at
each functional level.

2) Their production is car and production occur on a large scale; it includes assembly
line in which parts are added to a product in a sequential manner using optimally
planned logistics to create a finished product.

1
 3) The environment in the automobile sector is almost stable and hence the flexibility in
the structure is not required.

4) Each functional department tends to get perfection at its level. At horizontal level it
involves cross functional teams and sometimes direct contact in the form of a
coordinator from each department who can communicate the progress in their
respective department.

5) Each function is separate at functional level and communication and co-operation

among functions are responsibility of someone at the top hierarchy. Communication is
mostly vertical from department to division and then directors.

6) Main decisions are taken by directors in respective functional divisions.

7) All these features are in line with the mechanistic structures which are economies to
scale, and are designed to induce people to behave in accountable ways.

 Maruti has a Flat and Decentralized structure Structural elements:

1) Specialization:
As the Maruti have functional structure and division of labour so there is high degree of
specialization.

2) Centralization:
Power is distributed within the hierarchy because there are various persons who play a very
crucial role in the organization.

3) Formalization:
The instructions, procedures are written down formally in the organization and on the other
hand departments have their own formal procedures of doing work in an organization so that
they can achieve their objectives on time.

4) Complexity:
Complexity arises because of structural complexity as there is goal incompatibility between
different departments.

2
 5) Span of control:
The span of control is generally at the top level is 3-6, 4-8 at the middle level management
and 0-8 at the lower-level management. In production level at lower level the span of control
is at 40-50.

2.2.1 Board of Directors:

1) MR. KENICHI
AYUKAWA (Executive
Vice Chairman)

2) MR. HISASHI TAKEUCHI

(Managing Director & CEO)

3) MR. R. C. BHARGAVA
(Chairman)

4) MR. SHIGETOSHI TORII

(Joint Managing Director (Production and Supply Chain)

5) MR. TOSHIHIRO SUZUKI

(Director)

6) MR. KENICHIRO TOYOFUKU

Director (Corporate Planning)

7) MR. OSAMU SUZUKI

(Director)

8) MR. KINJI
SAITO
(Director)

2
 9) MR. D. S. BRAR
(Independent Director)

10) MR. R.P. SINGH

(Independent Director)

11) MR. MAHESWAR SAHU

(Independent Director)

12) MS. LIRA GOSWAMI

(Independent Director)

2.3 Key Executive Teams:

1) Vanraj Rawat
(Showroom Manager)

2) Prashant Dave
(Senior Relationship Manager)

3) Mohsin Sorthiya
(Senior Relationship Manager)

Sales Team Members:

1) Bhadreshbhai Maheshbhai Bhatt

2) Bhavya S Mori
3) Darshna Rasikbhai Bhatti
4) Hiren Nimavat
5) Kunjan Harsukhlal Thaker
6) Sagarkumar Prabatbhai Akhed

2
 7) Chetankumar Nareshibhai Mansuriya
8) Dhruvbhai Kishorbhai Bhatt
9) Parag L Kaneriya
10) Prashant D Dave
11) Samirbhai Mansukhlal Upadhyay

2.4 Products/Services Offered:

Products:

1) IGNIS
2) Baleno
3) Ciaz
4) S-Cross
5) XL 6

Services:

1) GENUINE NEXA ACCESSORIES – Exterior, Interior, Car care, Lifestyle, Safety

and Security, Infotainment

2) SUZUKI CONNECT - A WHOLE NEW WAY TO CONNECT TO YOUR CAR

3) GENUINE PARTS - Maruti Suzuki India Ltd. provides replacement of parts under
the brand “Genuine NEXA Parts" which includes Air Filter, Brake Pads, Clutch, Oil
Filters etc.

4) ON ROAD SUPPORT - Stuck in the city? Or stuck in the back of beyond, without
help for miles? All you need to do is dial 1800-102-6392, 1800-200-6392.

5) Just a Call and NEXA On Road Support will swing into action.

2
2.5 Key Financial/Operational result for last 5 years:

 Production Capacity of the Company has two state-of-the-art manufacturing facilities

located in Gurugram and Manesar in Haryana, capable of producing ~1.5 million
units per annum. Highly efficient and lean manufacturing processes, together with a
skilled and motivated workforce, enable manufacturing of reliable and quality
products. Suzuki Motor Gujarat Private Limited (SMG), a subsidiary of SMC, was set
up in Hansalpur, Gujarat to cater to the increasing market demand for the Company’s
products and has been operational since 2017.

 In April 2021, the 3rd manufacturing plant, with an annual production capacity of
0.25 million units was made operational. With this new capacity addition, the annual
production capacity at SMG reached to 0.75 million units The Company is
responsible for the sales and distribution of units produced at the SMG facility in
Gujarat.

 Currently, the Maruti Suzuki Nexa network consists of over 350 showrooms that are
spread across more than 200 cities in India. This makes the Nexa the third largest
retail automobile channel (in terms of volume).

 In related news, Maruti Suzuki is gearing up to launch the S-Cross petrol on

August 5, 2020. The S-Cross will only be offered with a BS6-compliant, 105hp, 1.5-
litre petrol engine, with both, a manual and automatic gearbox option. The S-Cross
will continue to be sold via the Nexa dealerships.

2
2.5.1 Overall Financial/Operational performance of the company/Institution:

Parameters FY 17 FY 18 FY 19 FY 20 FY 21

Net Sales 6,69,094 7ion,81,048 8,30,265 7,16,904 6,65,621

EBITDA 1,03,517 1,20,615 1,09,993 73,026 53,543

EBIT 77,496 93,036 79,804 37,769 23,138

PBT 99,603 1,10,034 1,04,656 70,648 51,594

PAT 73,502 77,218 75,006 56,506 42,297

EPS 243 256 248 187 140

Dividend Per Share 75 80 80 60 45

Net Worth 3,64,311 4,17,573 4,61,415 48,4,370 5,13,668

Current Liabilities 1,32,264 1,54,421 1,41,503 1,12,948 1,61,067

Total Liabilities 1,48,195 1,76,128 1,67,903 1,41,151 1,87,006

Non-Current Assets 4,24,744 5,14,487 5,05,702 5,41,247 5,15,407

Current-Assets 87,762 79,214 1,23,616 84,274 1,85,267

Total Assets 5,12,506 5,93,701 6,29,318 6,25,521 7,00,674

Operating Cash Flow 1,02,793 1,17,850 65,932 34,051 88,388

2
2.6 Milestones Achieved:

1) Maruti Suzuki’s subsidiary NEXA achieves 1.4 million sales milestone in six
years. Maruti Suzuki announced a premium chain of showrooms called NEXA
in 2015.

2) At present, there are over 350 Nexa outlets covering more than 200
cities across the country.

3) In a short span of 5 years, NEXA has become the 3rd largest automobile
brand in India with over 370 state-of-the-art showrooms across 200+ cities.

4) With innovation and technology at its core, NEXA Augmented Reality (AR)
technology was launched through the One-by-One showroom.

5) The NEXA AR allows the customers to experience the exact variant of the
vehicle that they want to buy in their choice of color at the showroom.

2.6.1 Awards Received:

1) NEXA collaborates with the most admired creators in the world of fashion, music and
travel to bring alive inspiring experiences.

2) NEXA collaborated with designer duo Shantanu and Nikhil for its Fashion Show at
IIFA Rocks, with stars like Anil Kapoor, Dia Mirza and Urvashi Rautela being the
showstoppers.

3) The NEXA IIFA Awards 2018

4) Alpha dealer award

5) Prem motors has been awarded as 3rd highest car selling dealer of india by Maruti
Suzuki in nexa channel.

2
 CHAPTER – 3

Departmental Study

Finance Department:
NEXA Finance helps customers realize their dream of owning a car, with ideal finance deals
suited for the customers, right at the dealership. Starting from choosing the right financier,
until the completion of loan formalities, we ensure that availing finance at NEXA will be a
delight. NEXA Finance also offers flexible and customized financial solutions to enhance
your car buying experience.

 NEXA FINANCE ADVANTAGES DETAILS:

1) ONE STOP SHOP FOR CUSTOMERS’ NEEDS:

NEXA Finance offer customers, the convenience of a one stop shops for their entire vehicle
finance related needs, including choosing the right partner, selecting the best suited loan
product, completion of all the finance related formalities and disbursal of loan by acting as a
facilitator between the customer & financier.

2) WIDE CHOICE OF FINANCIERS:

NEXA Finance has a tie-up with a wide range of financiers who have a pan-India presence.
This provides a wide variety of choices to the customers, who can avail finance from any of
the partners, according to their needs and profiles.

3) SPECIAL OFFERS AND BENEFITS:

NEXA Finance negotiates with its finance partners to launch special sales promotion schemes
such as lower down payment schemes, lower interest rates and other promotional offers that
are not available otherwise. By opting for NEXA finance our customers can get these special
offers across the network of NEXA dealers.

4) CREATING CUSTOMER DELIGHT:

NEXA Finance, through its finance partners, endeavors to create customer delight by offering
a hassle-free solution for financial needs, including best car finance options, financier for
every profile and geography, best interest rate, low processing time etc.

 Nexa Finance Partners:

A. Private Banks:
1. HDFC Bank
2. ICICI Bank
3. Yes Bank

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 4. Axis Bank
5. Indusland Bank

B. PSU Banks:

1. SBI
2. Punjab National Bank
3. Bank of Baroda
4. Oriental Bank of Commerce
5. Union Bank of India
6. Canara Bank
7. Syndicate Banks
8. IDBI Bank
9. UCO Bank
10. Corporation Bank
11. Bank of Maharashtra

C. NBFC:

1. Kotak Mahindra Prime Limited

2. Sundaram Finance Limited
3. Magma Fincorp Limited
4. Mahindra and Mahindra Financial Services Limited
5. Shriram City Union Finance Limited

3.1.1 Activities of Department/Area under Study:

1. Bookkeeping and Payables/Receivables

Bookkeeping is the most basic financial activity in a company. Before a business owner ever
considers hiring a CFO, they bring in a bookkeeper, who tracks all of the transactions in the
organization, covering both sales and expenses. As the organization grows, they might hire
more specialized payables and receivables clerks, to take over functions such as
corresponding with vendors and suppliers, above and beyond recording transactions.

2. Financial Reporting and Control

Financial Reporting and Control is the function that takes raw accounting entries and
transforms them into usable and comparable financial statements. Requiring far more
judgment than the bookkeeper’s role, this function involves everything from ruling on how to
implement accounting principles to designing financial processes of the organization,
selecting accounting systems, liaising with external auditors, and ensuring that there are no
gaps or oversights in existing processes.

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3. Tax and Compliance

Running a business involves paying tax, and paying tax means doing a lot of calculations and
filling out a lot of forms. Often using the financial statements as a basis, along with various
other configurations of the information produced by Bookkeeping and Payables/Receivables,
the Tax and Compliance function will make sure all of the government forms and filings are
sent complete and on-time to the taxman. A strong Tax and Compliance function will go one
step beyond simple compliance, and will find ways to minimize tax, so as to maximize the
company’s net income.

4. Strategic Planning and Financial Planning & Analysis

This function is the true bridge between the Past and the Future. FP&A regularly creates
strategic and financial plans that forecast what financial results (sales and expenses) will look
like in future periods. Then, they compare actual results—prepared with the assistance of the
Financial Reporting and Control function—to determine areas where the business can
improve. With this “variance analysis” complete, they can then prepare more accurate
forecasts for the future. A strong FP&A function will not only generate annual forecasts but
will be able to update them even over the course of a day or two, and to run many scenarios
that examine the effects of, say, losing a big customer or an economic contraction.

5. Treasury & Working Capital Management

The key role of Treasury is to make sure that the company doesn’t run out of cash. This
means, among other things, forecasting the upcoming working capital (receivables, payables
and inventory) needs of the company, investing surplus cash in short-term instruments to
generate modest interest income, and managing currency risk.

6. Capital Budgeting

Capital Budgeting is the function responsible for selecting between the various uses of
capital, or capital projects. After all, most organizations will have money available to invest
in the business, with the hopes of either growing sales or reducing expenses. But the
opportunities for spending typically exceed the amount available to spend, so Capital
Budgeting develops business cases to evaluate and identify the most effective projects. A
strong Capital Budgeting function will not only forecast project benefits, but will also track
these benefits over time to determine whether the use of capital was as effective as originally
anticipated.

7. Risk Management

Risk Management is a function that is rapidly developing after the financial scandals of the
early 2000s. In the financial services industry, the function is particularly central as most
institutions run with a high amount of debt (leverage), though leaders in other industries are
also bulking up this function. Risk Management takes a hard look at some of the key risks
faced by the company—currency, interest rate, market, operational, legal, etc.—and tries to
quantify the possible impacts so that they can be mitigated as much as possible. If FP&A
looks at the base case scenario for the company’s financial results, Risk Management takes a
wrecking ball to it.

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8. Corporate Development & Corporate Strategy

Corporate Development and Corporate Strategy can be widely defined, but it is the area of
Finance most heavily populated by former investment bankers and management consultants.
As such, common tasks that fall to this function include sourcing and analyzing mergers &
acquisitions deals, raising debt and equity financing, making capital structure decisions and
providing insight into high level strategic decisions such as entering a new market.

3.1.2 Documents maintained for Planning, Staffing, Directing and

Controlling by Nexa:

LIST OF DOCUMENTS REQUIRED-

A. FOR SALARIED:

1. Two photographs of applicant

2. ID proof of applicant (Pan card/Voter ID /Aadhar card/Passport / Driving License/ID
card issued by Govt.)
3. Address proof of applicant (Voter ID / Passport/Latest Electricity
Bill/Water/Telephone Bill/Ration card/Insurance Policy)
4. PDC as per Bank’s requirement
5. Last 6 months Bank account statements reflecting salary credit
6. Latest 2 Years ITR or Form 16
7. Last 3 months Salary Slips

B. SELF EMPLOYED

1. Two photographs of applicant

2. ID proof of applicant (Pan card/Voter ID /Aadhar card/Passport / Driving License/ID
card issued by Govt.)
3. Address proof of applicant (Voter ID / Passport/Latest Electricity
Bill/Water/Telephone Bill/Ration card/Insurance Policy)
4. PDC as per Bank’s requirement
5. Last 6 months Bank account statements
6. Latest 2-year Audited Balance sheet and P&L Statement (C. A. Certified)
7. An acknowledged copy of IT returns for last 2 years

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 C. PARTNERSHIP FIRM

1. Two photographs of applicant

2. ID proof of applicant (Pan card/Voter ID /Aadhar card/Passport / Driving
License/ID card issued by Govt.)
3. Address proof of applicant (Voter ID / Passport/Latest Electricity
Bill/Water/Telephone Bill/Ration card/Insurance Policy)
4. PDC as per Bank’s requirement
5. 2 recent passport size photographs of partners
6. Partners residence proof and ID proof
7. Address proof of the firm (Sales Tax registration Certificate, Shops &
Establishment Act Certificate/SSI Registration Certificate, Electricity
Bill/Telephone Bill, copy of trade license)
8. Pan card of firm
9. Last 6 months Bank account statements
10. Partnership Deed
11. Latest 2-year Audited Balance sheet and P&L Statement (C. A. Certified)
12. An acknowledged copy of IT Returns (of) for the last 2 Years of the firm
13. Letter of Authority (signed by all the partners)

3.2 Interdependence of Department/Area Under Study with Other

Departments/Operational Areas:

-- The Finance Department has dependency on the production, marketing and personnel
department.

1] Dependency with production department

Production department’s main duty is to produce the goods. For producing goods, it needs
raw material, labor and other expenses. For paying all expenses, production department needs
money and fund which will be fulfilled by finance department. Finance department checks
the budget of production department and allow funds for production department. With this
view, we can understand the production department is dependent on finance department’s
decision.

2] Dependency with marketing department

Marketing department’s main duty is to sell maximum goods and satisfy the consumers. Its
product’s input cost will decrease if all products are sold by marketers of company. For
developing the product, promotion activities and distribution activities of marketing
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department need some money for paying salesmen, advertising budget and other promotion
activities. For this marketing department makes his marketing budget and it is cleared by
finance department.

3] Dependency with personnel department

Personnel is that science which manages the employees of company and finance is that
science which manage the money. If personnel department and finance department work
together with co-operation, both departments can satisfy the objectives of company. It is the
objective of company to satisfy employees by fulfilling their financial needs. It is also
objective of company to reduce the misuse of funds by paying excess salary that required cost
of doing work by employee.

3.3 SWOT ANALYSIS OF ACTIVITIES OF DEPARTMENT:

SWOT Analysis stands for – Strengths, Weaknesses, Opportunities, and Threats that Msil
Nexa encounters both internally and in macro environment that it operates in. Strengths and
Weaknesses are often restricted to company’s internal - resources, skills and limitations.

Opportunities and Threats are factors that are analyzed in view of the prevalent market forces
and other factors such as economic, technological, social, health & safety, legal &
environmental, and political.

A] Strengths - Nexa: Maruti Suzuki's Premium Dealership Network:

1) Managing Regulations and Business Environment – Msil Nexa operates in an

environment where it faces numerous regulations and government regulations. In
Customer service, Manufacturing areas, the firm needs to navigate environment by
building strong relationship with lobby groups and political network.

2) Strong relationship with existing suppliers – As an incumbent in the industry, Msil

Nexa has strong relationship with its suppliers and other members of the supply
chain. According to Boishampayan Chatterjee, Manas Paul, Parijat Upadhyay, Neel
Das, the organization can increase products and services by leveraging the skills of
its suppliers and supply chain partners.

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3) Strong Brand Equity and Brand Awareness – Msil Nexa has some of the most
recognized brands in the domestic market it operates in. According to
Boishampayan Chatterjee, Manas Paul, Parijat Upadhyay, Neel Das, brand
recognition plays a significant role in attracting new customers looking for solutions
in Customer service, Manufacturing adjacent industries.

4) Superior product and services quality can help Msil Nexa to further increase its
market share as the current customer are extremely loyal to it. According to
Boishampayan Chatterjee, Manas Paul, Parijat Upadhyay, Neel Das in Nexa: Maruti
Suzuki's Premium Dealership Network study – there are enough evidences that with
such a high quality of products and services, Msil Nexa can compete with other
global players in international market

5) First Mover Advantage – Msil Nexa has first mover advantage in number of
segments. It has experimented in various areas Customer service, Manufacturing.
The Sales & Marketing solutions & strategies have helped Msil Nexa in coming up
with unique solution to tap the un-catered markets.

B] Weakness - Nexa: Maruti Suzuki's Premium Dealership Network:

1. Msil Nexa business model can be easily replicated even with the number of
patents and copyrights the company possess. The intellectual property rights
are very difficult to implement in the industry that Msil Nexa operates in.
According to Boishampayan Chatterjee, Manas Paul, Parijat Upadhyay, Neel Das,
Intellectual Property Rights are effective in thwarting same size competition but
it is difficult to stop startups disrupting markets at various other levels.

2. Customer Dissatisfaction – Even though the demand for products have not gone
down but there is a simmering sense of dissatisfaction among the customers of
Msil Nexa. It is reflected on the reviews on various on-line platforms. Msil Nexa
should focus on areas where it can improve the customer purchase and post
purchase experience.

3. Implementation of Technology in Processes – Even though Msil Nexa has

integrated technology in the backend processes it has still not able to harness
the power of technology in the front-end processes.

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 4. Lack of critical talent – I believe that Msil Nexa is suffering from lack of critical
talent especially in the field of technology & digital transformation. Msil Nexa is
struggling to restructure processes in light of developments in the field of
Artificial Intelligence (AI) and machine learning.

C] Opportunity- Nexa: Maruti Suzuki's Premium Dealership Network:

1. Changing Technology Landscape – Machine learning and Artificial Intelligence boom

is transforming the technology landscape that Msil Nexa operates in. According to
Boishampayan Chatterjee, Manas Paul, Parijat Upadhyay, Neel Das , Msil Nexa can
use these developments in improving efficiencies, lowering costs, and transforming
processes.

2. Lucrative Opportunities in International Markets – Globalization has led to

opportunities in the international market. Msil Nexa is in prime position to tap on
those opportunities and grow the market share. According to Boishampayan
Chatterjee, Manas Paul, Parijat Upadhyay, Neel Das, growth in international market
can also help Msil Nexa to diversify the risk as it will be less dependent on the
domestic market for revenue.

3. Increase in Consumer Disposable Income – Msil Nexa can use the increasing
disposable income to build a new business model where customers start paying
progressively for using its products. According to Boishampayan Chatterjee, Manas
Paul, Parijat Upadhyay, Neel Das of Nexa: Maruti Suzuki's Premium Dealership
Network case study, Msil Nexa can use this trend to expand in adjacent areas
Customer service, Manufacturing.

4. Developments in Artificial Intelligence – Msil Nexa can use developments in artificial

intelligence to better predict consumer demand, cater to niche segments, and make
better recommendation engines.

5. Increasing Standardization – Msil Nexa can leverage this trend to reduce the number
of offerings in the market and focus the marketing efforts on only the most successful
products.

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D] Threats - Nexa: Maruti Suzuki's Premium Dealership Network:

1. Growing Protectionism - Msil Nexa should hedge the risk against growing
protectionism ranging from – storing data into international market to diversifying
risk by operating into countries at different economic cycle.

2. US China Trade Relations – Msil Nexa has focused on China for its next phase of
growth. But there is growing tension between US China trade relations and it can lead
to protectionism, more friction into international trade, rising costs both in terms of
labor cost and cost of doing business.

3. Increasing costs component for working in developed market because of

environmental regulations – Msil Nexa has to deal with these costs as governments
are trying to levy higher environmental taxes to promote cleaner options. For Msil
Nexa it may result into higher logistics costs and higher packaging costs.

4. Government Regulations and Bureaucracy – Msil Nexa should keep a close eye on
the fast-changing government regulations under the growing pressure from protest
groups and non-government organization especially regarding to environmental and
labor safety aspects.

5. Culture of sticky prices in the industry – Msil Nexa operates in an industry where
there is a culture of sticky prices.

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 CHAPTER – 4

Work/ Training/Assignment

4.1 Objectives:

 The objectives of study are:

1. To understand the concept of Loan and Financing.

2. To understand the process of loan and financing.

3. To understand the requirements for loan and financing.

4. To check whether the customer is salaried, self-employed or NIP.

5. To check the weather the customer is eligible for getting loan from the bank or he he
should go to non-Banking financial company for loans.

6. To check whether the CIBIL score of customers is adequate or not.

7. To check whether the customer have paying capacity for his/her debts.

8. To check whether the customer have adequate income which is required for raising
the loan or not.

9. To check whether the customer is having his own home or he is leaving on rent.

10. To check whether the customer is having Aadhar card, PAN card, income statements
of last 3-6 months, electricity bill etc.

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4.1 Data of Work/Assignment/Training:

 LIST OF DOCUMENTS REQUIRED-

A. FOR SALARIED:
1. Two photographs of applicant
2. ID proof of applicant (Pan card/Voter ID /Aadhar card/Passport / Driving License/ID card
issued by Govt.)
3. Address proof of applicant (Voter ID / Passport/Latest Electricity Bill/Water/Telephone
Bill/Ration card/Insurance Policy)
4. PDC as per Bank’s requirement
5. Last 6 months Bank account statements reflecting salary credit
6. Latest 2 Years ITR or Form 16
7. Last 3 months Salary Slips

B. SELF EMPLOYED:

1. Two photographs of applicant

2. ID proof of applicant (Pan card/Voter ID /Aadhar card/Passport / Driving License/ID
card issued by Govt.)
3. Address proof of applicant (Voter ID / Passport/Latest Electricity
Bill/Water/Telephone Bill/Ration card/Insurance Policy)
4. PDC as per Bank’s requirement
5. Last 6 months Bank account statements
6. Latest 2-year Audited Balance sheet and P&L Statement (C. A. Certified)
7. An acknowledged copy of IT returns for last 2 years

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 D. PARTNERSHIP FIRM:

1. Two photographs of applicant

2. ID proof of applicant (Pan card/Voter ID /Aadhar card/Passport / Driving License/ID
card issued by Govt.)
3. Address proof of applicant (Voter ID / Passport/Latest Electricity
Bill/Water/Telephone Bill/Ration card/Insurance Policy)
4. PDC as per Bank’s requirement
5. 2 recent passport size photographs of partners
6. Partners residence proof and ID proof
7. Address proof of the firm (Sales Tax registration Certificate, Shops & Establishment
Act Certificate/SSI Registration Certificate, Electricity Bill/Telephone Bill, copy of trade
license)
8. Pan card of firm
9. Last 6 months Bank account statements
10. Partnership Deed
11. Latest 2-year Audited Balance sheet and P&L Statement (C. A. Certified)
12. An acknowledged copy of IT Returns (of) for the last 2 Years of the firm
13. Letter of Authority (signed by all the partners)

4.2 ANALYTICAL STUDY OF WORK:

A] How does car financing work?

When you finance a car, a financial institution lends you the money you need to buy the
car. In exchange, you pay the lender interest and possibly fees to borrow that money
over a specific number of months.

Car financing options include banks, credit unions, online lenders, finance companies
and some car dealerships. Financing through a credit union or bank may be less
expensive than getting a loan through a dealership because dealers may increase
interest rates to pay themselves back for arranging your financing. And some
dealerships provide their own financing. Referred to as in-house financing or “buy-here,
pay-here” dealerships, these car dealers may charge interest rates that are much higher
than those charged by other types of lenders.

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If you plan to finance a car, you’ll need to shop and apply for a car loan. If you’re
approved, you’ll make monthly payments until the loan is paid off. Each payment you
make will be split into the following two parts:

1. The principal payment, which goes toward paying back your loan balance
2. The interest payment, which pays interest due

Part of your payment may also go toward certain loan fees, like late payment fees.

Your monthly car loan payment is determined by your loan amount (the car’s purchase
price minus any down payment and trade-in), annual percentage rate, or APR, and loan
term. The APR is one of the biggest factors to consider. It affects how much money you’ll
end up paying for the car. Different factors can affect your interest rate, including your
credit, loan term and whether you’re buying a new or used car.

Once you repay the loan in full, your lender will usually send a lien release document
(depending on your state) to the state transportation agency. The car’s title will then be
updated and transferred to you.

B] How healthy does your credit need to be to finance a car?

There isn’t one universal minimum credit score you need to have in order to finance a
car. Each lender sets its own minimum credit scores and weighs factors such as the type
of car you’re buying or your income differently. Some lenders may be willing to work
with people who have bankruptcies or recent repossessions in their credit history, for
example.

Still, the average credit score was 718 for new-car loans and 662 for used-car loans in
the third quarter of 2019, according to Experian’s State of the Automotive Finance
Market report. The report also shows that only 38% of all car loans were made to
people with credit scores below 660.

It’s generally a good idea to take some time to build your credit before applying for car
financing — if you’re able to wait. If your credit scores are low, you may receive fewer
offers than someone with good credit. And if you’re approved for a loan, you’ll likely get
a higher interest rate than someone with a better credit score.

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People with credit scores over 780 paid an average interest rate of 4.01% on their new-
car loans, while those with credit scores of 500 or less paid an average rate of 14.3%,
according to Experian’s report. This could translate to a major difference in how much
interest you pay over the life of your loan.

Let’s say you got a five-year $20,000 car loan. Here’s how your credit could affect how
much you pay in interest.

You’d pay more than $8,000 in interest on your loan with the 14.3% interest rate. That
means your $20,000 vehicle would actually cost you more than $28,000.

C] Is it a good idea to finance a car?

1. Whether it’s a good idea to finance a car depends on your own financial situation. If you
pay cash, you could avoid paying interest and any loan fees. But if paying in cash means
you’d completely drain your savings, you could find yourself stuck if a financial
emergency arises.

2. If you need a set of wheels and don’t have the cash in hand to pay for it, financing may be
your only option. Be sure to pay attention to how much you finance versus the value of
the car you’re buying. If you don’t make a down payment and finance the entire cost of
the car, you could find yourself owing more than your car is worth within a year or two.

3. Financing a car could be a way to take advantage of dealership incentives and car
manufacturer specials, such as 0% financing or rebates. But keep in mind that you’ll
typically need to get a car loan through the automaker’s finance company to qualify for
these offers.

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D] What’s next?

1. Just as you might shop around for a car, you’ll want to shop around for a car loan. The
interest rate and loan term you’re offered may vary by lender — shopping around
could help you find the best rate and terms for your budget.

2. Applying for prequalification with different lenders and getting prequalified can help
you see estimated loan rates and terms without a hard inquiry appearing on your credit
reports. But remember that getting prequalified isn’t a guarantee of loan approval —
your loan terms may change after you submit your loan application and the lender
runs a hard credit inquiry.

3. As you consider each loan offer, don’t just focus on your monthly payment. Look at
the total cost of financing, too. For example, it may be tempting to choose a longer
loan term to lower your car payments, but you could end up paying much more in
interest over the life of the loan. Finding the best financing for your needs can take
some strategy and time. But in return, you could save hundreds or even thousands of
dollars.

4.3 Conclusions:

A] Effect of Down Payment on a Car Loan:

Down payments are inversely proportional to car loans. Since part of the total cost of a
car is paid upfront, the more down payment you make, the less loan you will have to
borrow in order to match the price of the car. This will, in turn, help you repay your loan
faster. In addition to this, a smaller amount of loan also means that you will have to pay
less money as monthly installments. Therefore, making a payment upfront while
purchasing a car makes taking a loan easier on the pocket.
For example, a person plans on purchasing a car worth Rs.3 lakh and chooses a loan
tenure of 5 years. If he or she makes a down payment of Rs.80,000 then he/she has to
avail a car loan of Rs.2.2 lakh which should be paid back within 5 years along with the
interest. However, if the individual decides to pay Rs.1.5 lakh upfront, he or she will
only have to repay a loan amount of Rs.1.5 lakh excluding the interest. When this loan is
paid in 5 years, it will significantly reduce the sum that the applicant will have to pay as
equated monthly installments (EMI).

B] Effect of Down Payment In Terms of Loan Tenure

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When securing a loan, the tenure of the loan repayment plays an important role on the
EMIs paid by the candidate. If you avail a loan that is more spread out over the years,
you will have to pay less EMI every month in order to repay the loan. If a large sum is
paid off as down payment, you will need a smaller loan amount to meet the total price of
the car you plan to purchase. Therefore, this will increase your repayment capability
and you will be able to clear off your debt earlier. When the loan is repaid sooner, the
money that you will need to pay as interest to your financing bank or NBFC will also
reduce.
On the other hand, if you pay a large sum upfront and are still willing to pay the same
EMI for the same loan tenure, you will have more funds available as compared to when
you don’t make a payment. This way, you will be able to purchase a car of a higher price.
By choosing to pay with upfront cash, you would no longer have to settle for a car with a
lower price tag anymore. Instead, you can now buy the make and model of the car that
you have always dreamed of.
This can be further explained using the following examples:
 Example 1 - Let us assume that a candidate wants to buy a car priced at Rs.3
lakh. Now, if the individual doesn’t make any down payment, he or she will be
able to repay the debt in 5 years considering his/her maximum repayment
capability. However, if he/she decides to pay Rs.1 lakh with upfront cash, the
loan tenure will come down to 3 years if assumed that the person is willing to
pay the same amount as EMI.

 Example 2 - Similar to the previous example, a person plans to buy a car without
any down payment. Let us assume that he or she is eligible for a car loan of
Rs.3 lakh considering the maximum repayment capability of the candidate is
Rs.5,000 for the maximum loan tenure available. In such case, the candidate
can purchase a car worth a maximum of Rs.3 lakh. However, if the individual
decides to pay Rs.1 lakh upfront and is still willing to pay Rs.5,000 as EMI for
the same loan tenure, he or she will still receive Rs.3 lakh as loan. But, in this
scenario, the person can buy a car worth a maximum of Rs.4 lakh.

C] How Down Payments Affect the Interest Rate:

In addition to the loan amount and loan tenure, making a down payment also affects the
interest that you pay for your car loan. According to many banks and NBFCs, the
chances of getting a loan approved increases tremendously if a candidate pays a large
percentage of the total price of the selected car with upfront cash since the associated
risk will be less. When you avail a loan of a higher amount, the chances of defaulting
increases. Therefore, banks are likely to reject a loan if you don’t make a zero or less
payment upfront. Paying a large percentage of the total price is also helpful when you
don’t have a good credit score. This way, the loan amount will be less and the lender can
be assured of your repayment capabilities.

D] Making a down payment:

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 reduces the term of a loan. Since the interest rate is compounded throughout the entire
loan tenure, the reduction in the term requires less amount to be paid as interest.
Additionally, when you borrow a smaller amount through car loan, you might be eligible
for a lower interest rate. Therefore, a customer can save more if he or she makes a
bigger down payment irrespective of the term of the loan.

As I have observed, loans are expensive. Sometimes we need to consider the

opportunity cost of decisions we make. Although we can afford the monthly payments
for a vehicle loan, we need to look at how much interest on the loan will cost us. Having
a better understanding of loans and interest rates will help you to make large purchase
decisions in the future.

4.4Suggestions:

1. Set Out a Budget

It is a cherished age-old value to always frame a budget before making a purchase, and opting
for a car loan is no different. Take the first step and carve out an outline of your daily and
necessary expenditure, keeping some money aside for unforeseen emergencies. Weigh these
along with the upcoming expenses after you buy the car you are taking the loan for. This
means that you need to account for other costs that you will incur in the future such as fuel,
car insurance, and regular maintenance in your budget. This enables you to plan for the
proceeding months more appropriately so that your finances are not strained when the EMI
tenure commences. Also, make sure your EMI is not more than 15% of your monthly net
income. This would help you maintain your savings while simultaneously paying your EMI.

2. Make a Considerable Down Payment

The golden rule to ease any upcoming pressure is to start early. This comes in handy also
while applying for a car loan. Opting to make a bigger down payment, even if that comes
from your savings has future advantages. It reduces the need to apply for a higher loan
amount, and more significant down payment reduces the outstanding debt. Additionally, a
lesser balance amount makes it easier to repay the loan. An added advantage of making a
sizeable down payment is that it will encourage you to pay the debt in a shorter span of time,
which will facilitate better car loan management.

3. Choose a Shorter Tenure

Another smart method to manage your car loan is to come down in favour of a shorter
repayment tenure. Banks that provide loan facilities often charge lower interest rates for loans
with a shorter tenure. This would also mean that you would be required to pay relatively more
EMI, but the stress of a continuing loan would be off your shoulders in a shorter span of time.
Paying off the debt as soon as possible not only relieves you of the loan but also instils an
increased sense of ownership of the car you just purchased! However, if choosing a longer

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repayment term seems more suitable, the benefit includes a lower EMI amount to be paid
over a longer period.

4. Be Punctual with EMIs

The payment of the chosen EMI is to be regularly made. Disciplined payment of the EMI
takes you closer to fully owning your dream car and also facilitates a healthy credit score. In
case you miss an EMI, or delay its payment, the interest rate accumulates till your next
repayment date, and that may become a budget issue. This not only increases the due amount
but may affect your credibility with the lender. Timely and regular payment of the EMIs
considerably increases your credit score with banks, leading to a faster processing and
disbursal of loans in the future. Your dedication does pay off well, not just in the present in
the form of a car that you own or the duly repaid loan amount, but for all future loans.

5. Consider Debt Consolidation

We all undergo troubling times where meeting our daily requirements may seem difficult.
Moreover, when we seek financial assistance to cater to a few of our needs, we might end up
paying more than one EMI per month. Keeping the cumulative EMI amount payable per
month under 50% of our monthly income, too, may seem tough. This may further increase
the financial constraint which the loan was supposed to ease in the first place. In case you are
already squeezing out EMIs for your previous loans, and are planning on applying for a car
loan, you may consider consolidating all your loans into one. It eases your calculations,
keeping loan repayment as simple and hassle-free as it supposed to be.

6. Keep in Touch with Your Bank

It is essential for a banking customer, especially a borrower, to be in constant touch with the
lending bank. There might be another financial emergency that needs your special assistance
for a month or two, making you postpone your EMI payment. It is best to get in touch with
your bank and notify them of the same. It generates mutual trust and enhances your financial
credibility. The probability of missing an EMI and informing the bank about it beforehand
may also be beneficial in terms of advice you may receive from your loan expert at the bank.

 With the points mentioned above, applying for a car loan and maintaining it would
seem even easier than before. Due diligence, the right payment method, regular
repayment of the loan, and a suitable insurance plan coupled with assistance from the
bank would enable you to manage your car loans with no difficulty whatsoever. With
considerable technological advancements in the banking sector, you may also apply
for loans online, from the comfort of your home.

4
 4.5 Outcomes of the SIP:

1. To understand the concept of Loan and Financing.

2. To understand the process of loan and financing.

3. To understand the requirements for loan and financing.

4. To check whether the customer is salaried, self-employed or NIP.

5. To check the weather the customer is eligible for getting loan from the bank or he
should go to non-Banking financial company for loans.

6. To check whether the CIBIL score of customers is adequate or not.

7. To check whether the customer have paying capacity for his/her debts.

8. To check whether the customer have adequate income which is required for raising the
loan or not.

9. To check whether the customer is having his own home or he is leaving on rent.

10. To check whether the customer is having Aadhar card, PAN card, income statements
of last 3-6 months, electricity bill etc.

11. The outcomes I get from the ‘Perfect Auto Services Nexa is valuable work experience.

12. In a company I have apply various soft skills such as time management, positive
attitude, and communication skills during performance of the task assigned in
internship organization.

13. Develop communication skill, interpersonal and other critical skills in the job
interview process.

14. While doing internship it is observed that the company is utilizing the job description
in order to make the screening process more efficient

4
 Bibliography/References

https://www.nexaexperience.com/nexaworld/nexa-philosophy-that-drives-our-
passion-to-create-inspire

Moneycontrol.com - Company Search, quotes, technical, intraday, charts,

volumes, historical stock price, messages, news, queries, IPO, Ipo listing, New
Ipo, upcoming issues,listed issues,IPO FAQs,Draft Offer,Basis of
Allotment,Prospectus,draft prospects,sebi,bse,nse,listing,promotor

production of maruti suzuki Nexa in last 5 years - Bing images

NEXA Car Accessories Range with Images (nexaexperience.com)

Maruti Suzuki Investors & Company Annual Reports

all milestone achieved by maruti suzuki nexa - Search (bing.com)

NEXA Finance | NEXA Experience

EMI Calculator: Baleno, Ciaz, Ignis, S-Cross, XL6 | NEXA (nexaexperience.com)

https://www.bing.com/search?q=about+automobile+industry+in+india&cvid=72c5a7db91b
74209a55ebc732ff578ab&aqs=edge.2.69i57j0l8.10165j0j1&pglt=2083&FORM=ANSPA1&PC=
ASTS&ntref=1

https://www.bing.com/newtabredir?url=aHR0cHM6Ly9idXNpbmVzcy5tYXBzb2ZpbmRpYS5jb
20vYXV0b21vYmlsZS8jOn46dGV4dD1UaGUlMjBhdXRvbW9iaWxlJTIwaW5kdXN0cnklMjBpbiU
yMEluZGlhJTIwaXMlMjBhJTIwZ3Jvd2luZyxwcm9kdWN0aW9uJTIwYWxsJTIwaGVscCUyMG1h
a2UlMjBJbmRpYSUyMHRoZSUyMHZpYWJsZSUyMGNob2ljZS4%3D&be=1

https://www.statista.com/topics/3771/automotive-industry-in-india/

4
 Annexure

Thank you so much for taking out time from your busy schedule and filling this survey form.

I am conducting a project study to identify the reasons why people stay at Organization

I will be asking you questions related to work culture, employee satisfaction, leadership.

I will compile and summarize the responses receive to assist in the identification of the reasons
why people stay at Organization.

Your name will not be attributed to any particular remarks.

Feel free to ask any clarification questions.

You may skip any questions that you do not wish to answer.

4
 Questionnaire

1. How long did you work in Automobile Industry?

a) Less than 1 year

b) More than 2 years
c) More than 5 years
d) More than 10 years

2. Mention the Department in which you are working and your Designation?
……………..

3. Your gender?

a) male
b) female

4. What attracted you to work in Nexa?

a) Work Environment
b) Salary
c) Allowance, Perks and Benefits
d) Offers Training Opportunities.

5. Why do you like working for Maruti Suzuki Nexa?

a) Treat employees with respect and provides good working environment.

b) Great Teamwork
c) Amicable (friendly) co-workers.
d) Adapts to Opportunities and Changes

6. Do you feel that your work environment is diverse and inclusive in race and ethnicity?

a) YES
b) NO

4
7. Do you feel a sense of belonging in your work environment?

a) YES
b) NO

8. How you will describe your working relationship with your current supervisor?

a) Excellent
b) Very Good
c) Good
d) Bad
e) Worst

9. Do you feel the company is transparent with employees?

a) YES
b) NO

10. Do you feel like you have a voice and your suggestions are heard by your
supervisor or manager?

a) YES
b) NO

4
 Enquiry/Booking Sheet of PERECT AUTO SERVICES NEXA

DSE Name Total E- E-Brochure Total EQ% EB% TD%

Enquiry Quote Sent Test
Sent Drive

Bhadresh 66 45 59 0 68% 89% 0%

Bhai

Bhavya S 70 50 69 3 71% 99% 4%

Mori

Chetan 83 62 77 7 75% 93% 8%

Kumar

Darshana 51 19 51 3 37% 100% 6%

Rasik

Hiren 1 1 1 0 100% 100% 0%

Nimavat

Kunjan 83 49 50 1 59% 60% 1%

Harsuk

Parag L 6 5 5 3 83% 83% 50%

Kaneriya

Sagar 68 54 66 3 79% 97% 4%

Kumar

SamirBhai 55 40 55 7 73% 100% 13%

Total 483 325 433 27 67% 90% 6%

5
5