A SUMMER INTERNSHIP REPORT

Submitted by

Allen Aakash Arpudaraj A

in partial fulfilment of Summer Internship for the

award of the degree

POST GRADUATE IN MANAGEMENT STUDIES

UNIVERSITY OF MADRAS

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 ACKNOWLEDGEMENT

I use this opportunity to express my deepest gratitude to everyone

who supported me throughout the course of this summer internship.
The internship opportunity I had with Lucas TVS Limited was a great
chance for learning and professional development.

I am thankful for their prospective guidance, invaluably helpful

criticism, friendly advice during the project work and sharing their
truthful views on a certain issue related to the project.

I also would like to thank Mr.M. Sudharsan, CFO Lucas TVS whose
approval provided me this golden opportunity.

I express my deepest sense of gratitude to Mr.L. Anto Arokia Jothi,

costing head and Mr. U. Krishna Kumar for being my Mentors and
Organizational Guide. He provided me a diligent support and
guidance at Lucas TVS. They were very supportive throughout the
internship period and made this a learning experience for me.

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 TABLE OF CONTENTS

Chapters Content Page

no.
1 Introduction 4

2 Company profile 5

3 Products produced 8

4 Organisational structure 11

5 Finance department structure 16

6 Learnings and work done 21

7 Projects 2
9
8 Conclusion 30

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 INTRODUCTION

As part of my masters in management studies, I went through a

1month internship program.

An internship is a paid or unpaid learning opportunity that provides

relevant, hands-on work in a student's subject of study. The
following report provides a comprehensive overview of the
internship experience gained at Lucas TVS, during 6-6-2024 to 6-7-
2024.

The internship program provided an opportunity to apply the

theoretical knowledge gained in the classroom to a real-world
setting, and gain valuable hands-on experience in a trading company.
The report highlights the key responsibilities, tasks and projects
undertaken during the internship, along with the skills developed
and lessons learned. The report also provides an evaluation of the
internship program and its impact on personal and profession. The
company is briefly introduced below.

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ABOUT THE COMPANY:

Lucas TVS, a renowned name in the automotive industry, has

established itself as a leading manufacturer of automotive electrical
systems and components in India since 1962. With a rich legacy
spanning several decades, Lucas TVS has consistently delivered
innovative solutions that cater to the evolving needs of the
automotive sector. The company's commitment to quality, reliability,
and technological advancement has earned it a prominent position
among both domestic and international markets. From starter
motors and alternators to automotive electronics and braking
systems, Lucas TVS continues to be a trusted partner for OEMs and
aftermarket customers alike, embodying excellence in automotive
engineering and manufacturing.

They have seven plants across India located in Padi, Rewari,

Pondicherry, Pant Nagar, Pune, MM Nagar, and TV Koil. The
company has a huge global presence, they have sales and sourcing
offices in the USA, Japan, South Korea, Germany and China. Their
major clients include automotive manufacturers such as Maruti
Suzuki, Hyundai, Toyota, Tata Motors, and Mahindra & Mahindra.

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Due to its dedication to quality, the company has received numerous
honors, such as Green Manufacturing Excellence Award, Energy
Conservation Award, Rajiv Gandhi National Quality Award, Export
Excellence Award etc. Lucas TVS is one of the few companies in the
world to be awarded the Deming Application Prize as well as the
Deming Grand Prize, both by Union of Japanese Scientists &
Engineers.

The company invests heavily in research and development (R&D) to

drive technological advancements and develop cutting-edge
products. Its R&D centers focus on areas such as electric and hybrid
vehicle components, advanced driver-assistance systems (ADAS), and
other emerging technologies. By staying at the forefront of
innovation, Lucas TVS aims to support the transition towards greener
and more efficient mobility solutions.

JOINT VENTURES:

Lucas TVS has formed several strategic joint ventures to expand its
capabilities and market reach. These collaborations have helped the
company leverage advanced technologies, access new markets, and

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enhance its product portfolio. Here are some notable joint ventures
involving Lucas TVS:

 Delphi-TVS Diesel Systems Ltd: A joint venture between Delphi

Automotive Systems (a former division of General Motors) and
TVS Group, this partnership focuses on the development and
manufacture of diesel fuel injection equipment and systems. It
is a significant player in the Indian market for diesel automotive
components.

 Lucas Indian Service: Initially part of the joint venture between

Lucas Industries and TVS Group, Lucas Indian Service focuses
on the sales and service of automotive components. It provides
comprehensive aftermarket services, including spare parts
distribution and technical support.

 India Nippon Electricals Ltd: This is a joint venture between

Lucas TVS and Kokusan Denki Co. Ltd of Japan. The company
manufactures electronic ignition systems, regulators, and
rectifiers for two-wheelers, three-wheelers, and portable
engines. This collaboration has enabled the integration of
advanced Japanese technology into Lucas TVS products.

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 PRODUCTS PRODUCED

ALTERNATOR:

One essential part of a car's charging system is the alternator. It

transforms engine mechanical energy into electrical energy.

A belt that is attached to the engine powers the alternator.

Alternating current (AC) is produced when the engine runs by
rotating the alternator's rotor inside a magnetic field. The
alternator's rectifier transforms this AC into direct current (DC),
which powers the car's electrical systems and charges the battery.

While the engine is running, the alternator charges the battery in the
car. When the engine is operating, it provides electricity to the car's

electrical systems, including the air conditioning, radio, and lighting.

DISTRIBUTOR:

One part of the ignition system is the distributor. It directs high

voltage in the proper firing order from the ignition coil to the
spark plugs. A revolving arm, or rotor, inside the distributor revolves

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in time with

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the camshaft of the engine. The distributor cap's several terminals,
which link to the spark plugs, are connected to the rotor as it
revolves. In order to produce a high-voltage spark, the distributor
also contains a set of points or an electronic sensor that breaks the
ignition coil's primary circuit.

it guarantees that the engine cylinders' air-fuel combination will

ignite when the spark plugs fire at the appropriate time.

WIPER:

The purpose of windshield wipers is to remove dirt, snow, rain, and

other debris from the front and rear windshields of a car.
An electric motor powers a linkage system, which transfers the
motor's rotational action into the wiper arms' back-and-forth
sweeping motion.

Rubber wiper blades that are fastened to the arms clean the
windshield. Wipers improve safety by ensuring that the driver can
see the road and surroundings clearly through a clear windshield.

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COMPRESSOR:

A key component of an automobile's air conditioning system, the

compressor compresses and circulates the refrigerant. It is powered
by an engine-connected belt and compresses the refrigerant gas
before sending it to the condenser, where it loses heat and becomes
a liquid. The condenser then expands and evaporates the refrigerant,
which cools the air and absorbs heat from the cabin.

STARTER:

In order to initiate the combustion process, the engine must cranked

by the starting motor. The starting motor turns on when the ignition
key is turned. It turns the engine's flywheel with the help of electrical
energy drawn from the battery. The engine may operate
independently thanks to the flywheel's spin, which starts the
combustion cycle.

Every one of these parts is essential to the general efficiency and

dependability of a car. Maintaining and resolving any potential
problems is made easier with an understanding of their roles and
operations.

It starts the internal combustion process by turning the engine over.

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 ORGANISATIONAL STRUCTURE

Advance
Engineering
Engineering
Engineering
Centre
Purchase
Unit Finance
Finance
Corporate
Finance
Quality

Planning

IT(Information
MD
Technology)

Store

Human
Resource

Manufacturing
system

Marketing

After
Marketing

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MD:

The highest-ranking executive in the firm, the Managing Director

(MD) is in charge of the company's management and overall
strategic direction. They supervise the performance of every
department, make that the company's goals and objectives are
accomplished, and provide a report to the board of directors.

ENGINEERING:

The Engineering department is responsible for the design,

development, and maintenance of products and systems. This
includes research and development, product design, and
ensuring that engineering projects are completed on time and
within budget. Subdivisions such as Advance Engineering and
Engineering Centre likely focus on innovative projects and
specialized engineering tasks.

PURCHASE:

The purchasing of supplies, machinery, and services that the business

need is managed by the purchase department. To assist operations
and production, they handle contracts, bargain with suppliers,
guarantee the quality of the products they buy, and keep an eye on
inventory levels.

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FINANCE:

The company's fiscal health is overseen by the finance department.

This include managing investments, forecasting, financial reporting,
budgeting, and making sure financial rules are followed. Different
divisions within the organization handle different aspects of financial
management, including Unit Finance and Corporate Finance.

QUALITY:

The quality department makes sure the goods and services fulfill all
necessary requirements in terms of standards and specifications. To
increase product quality and customer happiness, they carry out
quality control procedures, test and inspect products, and engage on
continuous improvement projects.

PLANNING:

Creating and carrying out strategic plans is the responsibility of the

planning department in order to accomplish the objectives of the
business. To guarantee efficient operations, this comprises
scheduling, resource allocation, production planning, and cross-
departmental coordination of activities.

IT:

The company's technological infrastructure is overseen by the

Information Technology (IT) department. This includes safeguarding

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data security, keeping up with software updates and system and
network maintenance, and helping other departments with their IT
requirements.

STORE:

Materials, items, and supplies are stored and inventoried by the

store department. They handle distribution of commodities to
various departments within the organization, monitor inventory
levels, and oversee warehouse activities.

HUMAN RESOURCE:

Recruitment, training, performance management, employee

relations, and benefits administration are among the tasks managed
by the Human Resources (HR) department. They guarantee that the
organization employs knowledgeable and driven people.

MANUFACTURING SYSTEM:

The Manufacturing System department is in charge of managing the

production procedures and making sure that they are effective,
economical, and adhere to quality requirements. They focus on
production scheduling, equipment upkeep, and process
improvements.

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MARKETING:

The Marketing department is responsible for promoting the

company's products and services. They develop marketing strategies,
conduct market research, manage advertising and promotional
campaigns, and work on brand building and customer engagement.

AFTER MARKETING:

The After Marketing department, also known as after-sales service,

focuses on providing support to customers after the purchase. This
includes handling customer complaints, providing maintenance and
repair services, managing warranties, and ensuring customer
satisfaction and loyalty.

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 LUCAS TVS FINANCE
ORGANISATION
STRUCTURE
CFO(Chief Executive Officer)

Unit Finance Corporate Finance

MIS(Management Information System) Business

Bills Recievable Costing Controller

Human Resource System

Customer Pricing Financial Analysis

Bills Payable

Production Management System Financial Forecasting

Vendor Pricing

CAPEX

NPP(New Product Pricing)

Finance System Financial Planning

Payroll
Sales Management System Financial Monitoring
Cost Auditors

Travel

Banking

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CHIEF FINANCIAL OFFICER:

The Chief Financial Officer (CFO) is in charge of creating and

managing the business's financial plan. They detect and control
financial hazards as well as guarantee accurate and timely financial
reporting to stakeholders. In addition to managing the company's
investment portfolio and overseeing the budgeting process, the CFO
also produces financial predictions and makes important investment
choices. All of this is done while making sure internal and financial
rules are followed.

UNIT FINANCE

BILLS RECEIVABLE:

Along with extending trade credit to clients, accounts receivable

departments also record client debt, facilitate collections, and post
cash. They could also create aging reports and reconcile customer
accounts to find out which clients are overdue on their payments.

BILLS PAYABLE:

The Bills payable department is responsible for managing the

payment processes within an organization, ensuring that invoices are
properly approved, processed, and paid in a timely manner.

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PAYROLL:

In order to sustain employee motivation, happiness, and morale, a

payroll department makes sure that workers are paid correctly,
legally, and on schedule. Professionals in payroll are also essential to
preserving wage and hour compliance.

CAPEX:
Capital expenditure (CAPEX) is the payment with either cash or credit
to purchase long-term physical or fixed assets used in the business's
operations.

TRAVEL:

Employee travel plans and costs are handled by the travel

department. This includes organizing travel-related expenses and
reimbursements in addition to scheduling lodging, flights, and other
forms of transportation. They guarantee that travel regulations are
observed and that expenditures associated with travel are kept
within budget.

BANKING:
Their key duties include keeping customer accounts active,
preserving records, and confirming KYC (Know Your Customer)
compliance. In relation to trade financing and commercial
transactions, they also issue and send appropriate paperwork.

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 CORPORATE FINANCE

MANAGEMENT INFORMATION SYSTEM (MIS):

The MIS compiles information from several sources and analyzes it to

meet the needs of managers and their employees. Although firms
employ a variety of systems, they all aim to provide managers the
data they need to make wiser decisions.

BUSINESS CONTROLLER:

The Business Controller makes ensuring that business units follow

their budgets and does financial data analysis to support business
decisions. They execute cost-cutting plans, keep an eye on company
performance, and make sure financial rules are followed. In addition,
the business controller is in charge of cost management, offering
analysis and suggestions to enhance efficiency and financial
performance.

COSTING

Costing oversees and controls expenses inside the company by

putting cost control mechanisms in place and keeping an eye on
them. Accurately allocating expenses to different projects and
departments, creating pricing strategies based on cost research, and
creating and presenting cost reports to management are all done by
them.

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 VENDOR PRICING: The Vendor Pricing team monitors
relationships, negotiates contracts and prices, and analyses
vendor expenses to guarantee cost effectiveness. They work
with suppliers to find cost-saving options, compare vendor
prices to industry norms, and keep prices reasonable while
guaranteeing vendors' quality and dependability. Their efforts
make a major contribution to the company's overall cost
control plan.

 CUSTOMER PRICING: price negotiations are carried out with

customers, market analysis is done to ascertain competitive
price, and customer pricing models are developed and
managed. They ensure that pricing strategies contribute to the
profitability of the organization by adjusting prices in
accordance with market conditions and corporate strategies. In
order to match price with market demand and competitive
dynamics, they must work closely with the sales and marketing
departments.

 NEW PRODUCT PRICING (NPP): To maintain profitability and

market competitiveness, the New Product price team creates
price plans and evaluates the costs of new goods. In addition to
working with the marketing and product development teams,
they anticipate the profitability of new goods and undertake
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market research to support price choices. Through their labour,

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 new items are priced suitably to attain the targeted financial
returns and market penetration.

 COST AUDIT: In order to ensure adherence to cost accounting

standards and laws, the Cost Audit team evaluates the
correctness of cost records and statements. They assess the
effectiveness of cost management procedures, provide audit
reports that include conclusions and suggestions, and assess
and enhance cost management-related internal controls. Their
function is essential to preserving the organization's efficiency
and financial integrity.

Every department plays a crucial role in the overall functioning of the

company, ensuring that it operates smoothly, meets its goals, and
maintains a competitive edge in the market.

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 LEARNINGS AND WORK DONE

The very first thing I learned from my first day are the proposals that
are handled by corporate finance department. Types of proposals
that are handled by corporate finance:

 CREDIT NOTE (CN): CN is a commercial document

that a seller issues to a buyer. It shows that a specific
sum has been refunded to the buyer's account,
usually as a result of an item return or an error in the
original invoice. This paper acts as a formal
acknowledgement that the buyer's account has been
adjusted to reflect a lower amount owed.

 DEBIT NOTE (DN): A DN is a document that a buyer

issues to a seller to let them know that more money
is due to them. There could be a number of causes for
this, including an overpayment, extra expenses, or
errors in the original invoice. A DN, like a CN, is a
formal acknowledgement of the transaction
adjustment indicating the increased amount owed.

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 DESIGN CHANGE NOTE PROPOSAL (DCNP): A DCNP is
a document that conveys changes or additions to a
product's design specifications. This could involve
making adjustments to the product's features,
materials, measurements, or any other design
element. DCNPs play a critical role in allowing
seamless manufacturing processes and quality
assurance by guaranteeing that all stakeholders are
informed about and in agreement with the revised
design requirements.

 ONE TIME (OT): The original price set for a newly

released component or product is referred to as OT.
Pricing for newly designed or sourced parts is decided
by taking into account a number of variables,
including the cost of materials, manufacturing
procedures, labour costs, overhead, and targeted
profit margins. For the sake of upcoming price
discussions and assessments, this starting price acts
as the standard.

 NEW PART PRICING (NPP): An NPP is created when a

company wants to buy a new product for its usage.
This happens when there is a problem with the
production process using the current components,
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and the

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 company decides to buy new parts to improve the
process.

 NEW PART SUPPLIER DEVELOPMENT (NPSD): In

order to implement NPSD, suppliers of recently
released components or products must be found,
assessed, and working relationships with them.
Qualification, onboarding, performance monitoring,
and supplier selection are all included in this process.
By engaging trustworthy and competent suppliers,
new components may be produced on time, within
budget, and with the quality and quantity required.

 PRICE REVISION REQUEST (PRR): PRRs are

recommendations for changing the cost of products
or services. These demands, which may include a
price increase or decrease, may be made by the
vendor or the customer. PRRs are generally
influenced by variables that affect price decisions,
such as shifts in the market, manufacturing costs,
currency fluctuations, and demand-supply dynamics.
To make sure they serve the interests of both parties,
these demands are carefully considered and
negotiated.

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THE 5S FOLLOWED BY LUCAS:

 Sort
 Set
 Shine
 Standardize
 Sustain

SORT: First, employees divide everything in a workstation into items

that are and are not needed. Some employ a technique known as
"red tagging," wherein, at the sorting stage, any item that is not
required for a procedure is red-tagged. We laid these away and will
review them later. Seldom used things are kept close by employees
but not at their workstations. They throw away dangerous objects.

SET: "A place for everything and everything in its place" is the
principle that Set, or Set in Order, abides by. things are arranged by
workers according to their purpose, with frequently used things
being placed closer at reach. All the items that passed the Sort phase
are placed in storage. Color-coded labels can sometimes be used by
employees to quickly identify storage areas. Employees working in an
ergonomic, tidy, and orderly workstation that is well-stocked and
understands

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where everything is kept are able to do so thanks to the Set in Order
phase. As a result, the workplace becomes less stressful.

SHINE: It’s time to tidy now that the mess is cleared and storage
areas are arranged. Following a comprehensive initial cleaning,
employees clean the station daily (often twice a day). This keeps the
progress from the Sort and Set stages. Work surfaces, machineries,
equipment, storage spaces, and tools are all included in cleaning.
Employees can work in a more comfortable setting during the Shine
phase because they are not as bothered by clutter, dust, and dirt.

STANDARDIZE: Developing strategies to maintain the first three

steps is the task of this step. Workers take part in developing a set of
guidelines that will direct future workstation maintenance. All
previous habits will vanish once this "new normal" is ingrained.
Nevertheless, before this becomes ingrained, it might need
monitoring and enforcement. The first three steps' behavioural
changes and progress are taken and turned into a standard method
during the standardise phase.

SUSTAIN: Adhering to the new regulations is the aim of Sustain.

Employees adhere to the new guidelines and practise the first three

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stages daily until they are second nature and the regular procedure.
This last phase frequently turns out to be the most difficult. All the
money and work invested in developing the new system, though, will
be for naught if it is not maintained. Although the Sustain phase of
5S frequently necessitates training and effective communication, in
the end, employees will grow accustomed to 5S practices.
Implementing 5S will not only help individuals become more
productive and less stressed.

3R'S USED IN MANUFACTURING:

 Reduce
 Reuse
 Recycle
The 3Rs of waste management are a set of guidelines designed to
help everyone minimise the quantity of rubbish they send to landfills
or incinerators and to cut down on the quantity of unnecessary
things they manufacture. Reduce, Reuse, Recycle is what the three
Rs stand for. Managing trash and contributing to the fight against
climate change require just three simple sentences. Reduce is the
action of making something smaller or less. Utilising something again
for its intended use or adapting it for a new use is known as reuse.
The term "recycle" refers to the process of transforming waste
materials into new or improved products.

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EXPORTS:

In exports, I was mostly working on export receivables documents,

where there’s mostly two type of documents. Negotiation bill and
advance bill
NEGOTIATION BILL: When an exporter provides a negotiation bill to
their bank, they also need to provide other required documents, like
the invoice and bill of lading. The exporter is subsequently paid the
bill's value by the bank, less any fees or interest, when the bank buys
or negotiates the bill.
PROCESS:
 The goods are exported and necessary documents are
submitted to the exporter's bank
 The bank reviews the documents and negotiates the bill
 Finally, the exported will receive the payment

ADVANCE BILL:
Prior to the importer's final settlement, the exporter receives an
advance payment from their bank against the export paperwork in
the case of an advance bill. This is more of a pre-financing method
where the exporter receives an advance upon submitting the bill of
exchange and shipping documentation.
PROCESS:
 The goods are exported and necessary documents are submitted
to the exporter’s bank
 The bank provides a percentage of the invoice value as advance
to the exporter
 Exporter’s bank then sends the documents to the importer’s
bank for collection

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 PROJECTS:
I. Analysing the cost of transporting from Chennai to Pondicherry
was one of the projects. Myself and one of my fellow intern
found out that the estimates were based on the higher petrol
price in Chennai than in Pondicherry. Using the Pondicherry
diesel pricing, we discovered that we could save our
transportation expenses by a large amount. Determine the cost
of petrol for products travelling from Chennai to Pondicherry.
The amount paid was based on the petrol price in Chennai,
which is more than that of Pondy. Therefore, the cost of
transportation might be reduced more by using Pondy diesel.

II. Vendor cost reduction rate or turnover discount (TOD).

Discount availed from the vendors are calculated, first vendors
are separated based on their contribution to the total purchase,
they are separated as : <0.5%, 0.5-0.75%, 0.75-1% & >1%. It is
found out that TOD contributions of >1% is very low in the total
TOD. So, the vendors contributed >1% are listed out and our
head decided we should ask and get more TOD from them. But
it is not possible only with this set of data. So, other sets of data
are considered and analysed.

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 CONCLUSION

In conclusion, the internship at Lucas TVS was a valuable learning

experience that provided me with the opportunity to gain hands-on
experience in the field of trading. During my tenure, I was exposed to
various aspects of the trading business, including accounting,
finance, and interpersonal skills. I was able to develop important
skills such as time management, organization, and problem-solving,
which will be beneficial in my future career.

I am grateful for the support and guidance provided by the team at

Lucas TVS, which enabled me to grow both professionally and
personally. The real-world experience and knowledge I gained will be
invaluable in my future endeavours. I would like to express my
sincere appreciation to Lucas TVS and my college for providing me
with this opportunity and I look forward to continuing to learn and
grow in my future endeavours.

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