A STUDY ON FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS

WITH
REFERENCE TO
“ANVITA HONDA SHOW ROOM ”
VIJAYAWADA”
A PROJECT WORK SUBMITTED TO
KRISHNA UNIVERSITY, MACHILIPATNAM.

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION
Submitted by
MANJEERA VELIKANTI
Under the guidance of
MR.M.SATHYENDRA KUMAR.
PROFESSOR AT KRISHNAVENI DEGREE COLLEGE.

1
 (Affiliated to KRISHNA UNIVERSITY)CHALASANI
NAGAR,PORANKI,TARAKATURU, VIJAYAWADA.
KRISHNAVENI DEGREE COLLEGE OF BUSINESS MANAGEMENT
VIJAYAWADA – 08

CERTIFICATE

This is to certify that the project work entitled “FINANCIAL SUPPORT TO TWO
WHEELER CUSTOMERS WITH
REFERENCE TO
“ANVITA HONDA SHOW ROOM ”
VIJAYAWADA”
is being submitted by V.MANJEERA bearing register number Y166194022 student
of 2ND year, belongs to department of Business Management studies,
2
KRISHNAVENI DEGREE COLLEGE, Vijayawada under my guidance in partial
fulfillment of award for the Degree in Bachelor of Business Management for the
period 2016-2019

(PROJECT GUIDE) PRINCIPAL

3
 DECLARATION

I “MANJEERA VELIKANTI” hereby declare that this project titled “A

STUDY ON FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS
WITH SPECIAL REFERENCE AT “ANVITA HONDA SHOW ROOM,
VIJAYAWADA” has been prepared by me in partial fulfillment of the requirement
for the award of Degree of BACHELOR OF BUSINESS ADMINISTRATION.

I also declare that this project report is my original work and that it has not been
submitted to any other University for the award of any degree or diploma.

SIGNATURE
MANJEERA VELIKANTI

4
 ACKNOWLEDGEMENT

I feel immense pleasure & proud to be a part of Westin College Of Business

Management that has nurtured me to the present state and I feel grateful towards it.

I would like to thank our college Director, MS BHULAKSHMI and SRI

KRISHNAVENI DEGREE COLLEGE

I express my sincere thanks to “ANVITA HONDA”,VIJAYAWADA, for allowing

me to undertake a project in their company. I was under the continuous and valuable
guidance ofMR. SHYAM PRASAD, General Manager that I was able to complete
the work entrusted to me.

Lastly I would like to thank my project guide M.SATHYENDRA KUMAR who was
a constant source of encouragement.

MANJEERAVELIKANTI
(Regd. No: Y166194022)

5
 CONTENTS

S.No Chapter Name Page Number

1 INTRODUCTION 1-33

2 METHODOLOGY OR
33-38
RESEARCH DESIGN

3 COMPANY PROFILE 39-51

4 ANALYSIS AND 52-64

INTERPRETATION

5 SUMMARY,CONCLUSIONS 65-68
AND SUGGESTIONS

6 BIBILIOGRAPHY 69-82

6
CHAPTER 1
INTRODUCTION

7
1.INTRODUCTION

The two wheeler industry has been expanding rapidly. Gone are the days when
processing a two wheeler was seen as a luxury.

Now a day it is viewed as a mere necessity.

Prior, sale of two wheelers was mainly confined to urban areas but
lately in rural areas the bicycles are being replaced by power driven
two wheelers such as scooters and motorcycles.

Not only this, the indust ry has also customers ranging from all
demographic segments.

It has been common that even school going children are driving two wheelers.
The women customers are also increasing due to increase in women literacy and
employment.

If getting a new customer is difficult, then retaining a current customer is more

difficult one and not only that it is estimated that the cost of attracting a new customer
is five times retaining the current customer.

It requires a great deal of effort to induce satisfied customer to

switch away f r o m t h e i r c u r r e n t p r e f e r e n c e .
Thus customer attitude is been given top priority in
t o d a y ’ s competitive world.

We know business is mainly concerned with the financial activities. In order to

ascertain the financial status of the business every enterprise prepares certain

statements, known as financial statements. Financial statements are mainly prepared

for decision making purposes. But the information as is provided in the financial

statements is not adequately helpful in drawing a meaningful conclusion. Thus, an

effective analysis and interpretation of financial statements is required.

8
TITLE OF THE PROJECT:

A Study On “FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS

WITH REFERENCE TO ANVITA HONDA SHOW ROOM.’’

DATA COLLECTION:

PRIMARY DATA:

The primary data related to the study has been collected from

• Mr.SHYAMPRASAD(GENERAL MANAGER)

• Mr.SUNEEL (SALES MANAGER)

SECONDARY DATA:

The data collected for making my study on Financial Statement Analysis is

secondary data; the various sources of secondary data are as follows:

Annual reports of (ANVITA HONDA VIJAYAWADA.)

Websites oF

 http://www.Anvitahonda.com/

 http://www.investopedia.com/

 https://www.indiamart.com/

 www.scribd.com
9
PERIOD OF STUDY:The duration of the study is 90 days based on the annual
reports of the company (ANVITA HONDA VIJAYAWADA)

MEANING OF FINANCE

Finance may be defined as the art and science of managing money. It includes

financial service and financial instruments. Finance also is referred as the provision of

money at the time when it is needed. Finance function is the procurement of funds

and their effective utilization in business concerns.

The concept of finance includes capital, funds, money, and amount. But each

word is having unique meaning. Studying and understanding the concept of finance

become an important part of the business concern.

DEFINITION OF FINANCE

According to Khan and Jain, “Finance is the art and science of managing money”.

According to Oxford dictionary, the word ‘finance’ connotes ‘management of

money’.

10
DEFINITION OF BUSINESS FINANCE

According to the Wheeler, “Business finance is that business activity which concerns

with the acquisition and conversation of capital funds in meeting financial needs and

overall objectives of a business enterprise”.

According to the Guthumann and Dougall, “Business finance can broadly be defined

as the activity concerned with planning, raising, controlling, administering of the

funds used in the business”.

TYPES OF FINANCE

Finance is one of the important and integral part of business concerns, hence, it plays

a major role in every part of the business activities. It is used in all the area of the

activities under the different names.

Finance can be classified into two major parts:

Private Finance, which includes the Individual, Firms, Business or Corporate

Financial activities to meet the requirements.

11
Public Finance which concerns with revenue and disbursement of Government such

as Central Government, State Government and Semi-Government Financial matters.

DEFINITION OF FINANCIAL MANAGEMENT

Financial management is an integral part of overall management. It is concerned with

the duties of the financial managers in the business firm. The term financial

management has been defined by Solomon, “It is concerned with the efficient use of

an important economic resource namely, capital funds”.

Howard and Upton: Financial management “as an application of general managerial

principles to the area of financial decision-making.

Weston and Brigham: Financial management “is an area of financial decision-

making, harmonizing individual motives and enterprise goals”.

Thus, Financial Management is mainly concerned with the effective funds

management in the business. In simple words, Financial Management as practiced by

business firms can be called as Corporation Finance or Business Finance.

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SCOPE OF FINANCIAL MANAGEMENT

Financial management is one of the important parts of overall management, which is

directly related with various functional departments like personnel, marketing and

production. Financial management covers wide area with multidimensional

approaches. The following are the important scope of financial management.

1. Financial Management and Economics

Economic concepts like micro and macroeconomics are directly applied with the

financial management approaches. Investment decisions, micro and macro

environmental factors are closely associated with the functions of financial manager.

Financial management also uses the economic equations like money value discount

factor, economic order quantity etc. Financial economics is one of the emerging area,

which provides immense opportunities to finance, and economical areas.

2. Financial Management and Accounting

Accounting records includes the financial information of the business concern. Hence,

we can easily understand the relationship between the financial management and

accounting. In the olden periods, both financial management and accounting are

treated as a same discipline and then it has been merged as Management Accounting

13
because this part is very much helpful to finance manager to take decisions. But

nowadays financial management and accounting discipline are separate and

interrelated.

3. Financial Management or Mathematics

Modern approaches of the financial management applied large number of

mathematical and statistical tools and techniques. They are also called as

econometrics. Economic order quantity, discount factor, time value of money, present

value of money, cost of capital, capital structure theories, dividend theories, ratio

analysis and working capital analysis are used as mathematical and statistical tools

and techniques in the field of financial management.

4. Financial Management and Production Management

Production management is the operational part of the business concern, which helps

to multiple the money into profit. Profit of the concern depends upon the production

performance. Production performance needs finance, because production department

requires raw material, machinery, wages, operating expenses etc. These expenditures

are decided and estimated by the financial department and the finance manager

allocates the appropriate finance to production department.

The financial manager must be aware of the operational process and finance required

for each process of production activities.

14
5. Financial Management and Marketing

Produced goods are sold in the market with innovative and modern approaches. For

this, the marketing department needs finance to meet their requirements. The financial

manager or finance department is responsible to allocate the adequate finance to the

marketing department. Hence, marketing and financial management are interrelated

and depends on each other.

6. Financial Management and Human Resource

Financial management is also related with human resource department, which

provides manpower to all the functional areas of the management. Financial manager

should carefully evaluate the requirement of manpower to each department and

allocate the finance to the human resource department as wages, salary, remuneration,

commission, bonus, pension and other monetary benefits to the human resource

department. Hence, financial management is directly related with human resource

management.

APPROACHES TO FINANCIAL FUNCTION

Financial management approach measures the scope of the financial management in

various fields, which include the essential part of the finance. Financial management

is not a revolutionary concept but an evolutionary. The definition and scope of

financial management has been changed from one period to another period and
15
applied various innovations. Theoretical points of view, financial management

approach may be broadly divided into two major parts.

A number of approaches are associated with finance function but for the sake of

convenience, various approaches are divided into two broad categories:

1. The Traditional Approach

2. The Modern Approach

1. The Traditional Approach:

The traditional approach to the finance function relates to the initial stages of its

evolution during 1920s and 1930s when the term ‘corporation finance’ was used to

describe what is known in the academic world today as the ‘financial management’.

According to this approach, the scope, of finance function was confined to only

procurement of funds needed by a business on most suitable terms.

The utilisation of funds was considered beyond the purview of finance function. It

was felt that decisions regarding the application of funds are taken somewhere else in

the organisation. However, institutions and instruments for raising funds were

considered to be a part of finance function.

16
The scope of the finance function, thus, revolved around the study of rapidly growing

capital market institutions, instruments and practices involved in raising of external

funds.

The traditional approach to the scope and functions of finance has now been discarded

as it suffers from many serious limitations:

(i) It is outsider-looking in approach that completely ignores internal decision making

as to the proper utilisation of funds.

(ii) The focus of traditional approach was on procurement of long-term funds. Thus, it

ignored the important issue of working capital finance and management.

(iii) The issue of allocation of funds, which is so important today, is completely

ignored.

(iv) It does not lay focus on day to day financial problems of an organisation.

2. The Modern Approach:

The modern approach views finance function in broader sense. It includes both rising

of funds as well as their effective utilisation under the purview of finance. The finance

function does not stop only by finding out sources of raising enough funds; their

proper utilisation is also to be considered. The cost of raising funds and the returns

from their use should be compared.

17
The funds raised should be able to give more returns than the costs involved in

procuring them. The utilisation of funds requires decision making. Finance has to be

considered as an integral part of overall management. So finance functions, according

to this approach, covers financial planning, rising of funds, allocation of funds,

financial control etc.

The new approach is an analytical way of dealing with financial problems of a firm.

The techniques of models, mathematical programming, simulations and financial

engineering are used in financial management to solve complex problems of present

day finance.

The modern approach considers the three basic management decisions, i.e.,

investment decisions, financing decisions and dividend decisions within the scope of

finance function.

OBJECTIVES OF FINANCIAL MANAGEMENT

Effective procurement and efficient use of finance lead to proper utilization of the

finance by the business concern. It is the essential part of the financial manager.

Hence, the financial manager must determine the basic objectives of the financial

management. Objectives of Financial Management may be broadly divided into two

parts such as:

1. Profit maximization
18
2. Wealth maximization.

1. PROFIT MAXIMIZATION

Main aim of any kind of economic activity is earning profit. A business concern is

also functioning mainly for the purpose of earning profit. Profit is the measuring

techniques to understand the business efficiency of the concern. Profit maximization

is also the traditional and narrow approach, which aims at, maximizes the profit of the

concern. Profit maximization consists of the following important features.

1. Profit maximization is also called as cashing per share maximization. It leads to

maximize the business operation for profit maximization.

2. Ultimate aim of the business concern is earning profit; hence, it considers all the

possible ways to increase the profitability of the concern.

3. Profit is the parameter of measuring the efficiency of the business concern. So it

shows the entire position of the business concern.

4. Profit maximization objectives help to reduce the risk of the business.

FavourableArguments for Profit Maximization

The following important points are in support of the profit maximization objectives of

the business concern:

19
(i) Main aim is earning profit.

(ii) Profit is the parameter of the business operation.

(iii) Profit reduces risk of the business concern.

(iv)Profit is the main source of finance.

Unfavourable Arguments for Profit Maximization

The following important points are against the objectives of profit maximization:

(i) Profit maximization leads to exploiting workers and consumers.

(ii) Profit maximization creates immoral practices such as corrupt practice, unfair

trade practice, etc.

(iii) Profit maximization objectives leads to inequalities among the stake holders such

as customers, suppliers, public shareholders, etc.

Drawbacks of Profit Maximization

Profit maximization objective consists of certain drawback also:

(i) It is vague: In this objective, profit is not defined precisely or correctly. It creates

some unnecessary opinion regarding earning habits of the business concern.

20
(ii) It ignores the time value of money: Profit maximization does not consider the time

value of money or the net present value of the cash inflow. It leads certain differences

between the actual cash inflow and net present cash flow during a particular period.

(iii) It ignores risk: Profit maximization does not consider risk of the business

concern. Risks may be internal or external which will affect the overall operation of

the business concern.

2. WEALTH MAXIMIZATION

Wealth maximization is one of the modern approaches, which involves latest

innovations and improvements in the field of the business concern. The term wealth

means shareholder wealth or the wealth of the persons those who are involved in the

business concern. Wealth maximization is also known as value maximization or net

present worth maximization. This objective is a universally accepted concept in the

field of business.

Favourable Arguments for Wealth Maximization

(i) Wealth maximization is superior to the profit maximization because the main aim

of the business concern under this concept is to improve the value or wealth of the

shareholders.

21
(ii) Wealth maximization considers the comparison of the value to cost associated

with business operation. It provides extract value of the business concern.

(iii) Wealth maximization considers both time and risk of the business concern.

(iv)Wealth maximization provides efficient allocation of resources.

(v) It ensures the economic interest of the society.

Unfavourable Arguments for Wealth Maximization

(i)Wealth maximization leads to prescriptive idea of the business concern but it may

not be suitable to present day business activities.

(ii)Wealth maximization is nothing, it is also profit maximization, it is the indirect

name of the profit maximization.

(iii)Wealth maximization creates ownership-management controversy.

(iv)Management alone enjoys certain benefits.

(v) The ultimate aim of the wealth maximization objectives is to maximize the profit.

(vi)Wealth maximization can be activated only with the help of the profitable position

of the business concern.

SCOPE OR CONTENT OF FINANCE FUNCTION/FINANCIAL MANAGEMENT

22
The main objective of financial management is to arrange sufficient finance for

meeting short-term and long-term needs. With these things in mind, a Financial

Manager will have to concentrate on the following areas of finance function.

1. Estimating Financial Requirements:

The first task of a financial manager is to estimate short-term and long-term financial

requirements of his business for this purpose, he will prepare a financial plan for

present as well as for future. The amount required for purchasing fixed assets as well

as needs of funds for working capital will have to be ascertained.

The estimations should be based on sound financial principles so that neither there are

inadequate nor excess funds with the concern. The inadequacy of funds will adversely

affect the day-today working of the concern whereas excess funds may tempt a

management to indulge in extravagant spending or speculative activities.

2. Deciding Capital Structure:

The capital structure refers to the kind and proportion of different securities for

raising funds. After deciding about the quantum of funds required it should be

decided which type of securities should be raised. It may be wise to finance fixed

assets through long-term debts. Even here if gestation period is longer, then share

capital may be most suitable. Long-term funds should be employed to finance

23
working capital also, if not wholly then partially. Entirely depending upon overdrafts

and cash credit for meeting working capital needs may not be suitable.

A decision about various sources for funds should be linked to the cost of raising

funds. If cost of raising funds is very high then such sources may not be useful for

long. A decision about the kind of securities to be employed and the proportion in

which these should be used is an important decision which influences the short-term

and long-term financial planning of an enterprise.

3. Selecting a Source of Finance:

After preparing a capital structure, an appropriate source of finance is selected.

Various sources, from which finance may be raised, include: share capital,

debentures, financial institutions, commercial banks, public deposits, etc. If finances

are needed for short periods then banks, public deposits and financial institutions may

be appropriate; on the other hand, if long-term finances are required then share capital

and debentures may be useful.

If the concern does not want to tie down assets as securities then public deposits may

be suitable source. If management does not want to dilute ownership then debentures

should be issued in preference to shares. The need, purpose, object and cost involved

may be the factors influencing the selection of a suitable source of financing.

24
4. Selecting a pattern of investment:

When funds have been procured then a decision about investment pattern is to be

taken. The selection of an investment pattern is related to the use of funds. A decision

will have to be taken as to which assets are to be purchased? The funds will have to

be spent first on fixed assets and then an appropriate portion will be retained for

working capital. Even in various categories of assets, a decision about the type of

fixed or other assets will be essential. While selecting a plant and machinery, even

different categories of them may be available. The decision-making techniques such

as Capital Budgeting, Opportunity Cost Analysis etc. may be applied in making

decisions about capital expenditures. While spending or various assets, the principles.

One may not like to invest on a project which may be risky even though there may be

more profits.

5. Proper Cash Management:

Cash management is also an important task of finance manager. He has to assess

various cash needs at different times and then make arrangements for arranging cash.

Cash maybe required to (a) purchase raw materials, (b) make payments to creditors,

(c) meet wage bills; (d) meet day-to-day expenses. The usual sources of cash may be:

(a) cash sales, (b) collection of debts, (c) short-term arrangements with banks etc. The

cash management should be such that neither there is a shortage of it and nor it is idle

An shortage of cash will damage the creditworthiness of the enterprise. The idle cash
25
with the business will mean that it is not properly used. It will be better if Cash Flow

Statement is regularly prepared so that one is able to find out various sources and

applications. If cash is spent on avoidable expenses then such spending may be

curtailed. A proper idea on sources of cash inflow may also enable to assess the utility

of various sources. Some sources may not be providing that much cash which we

should have thought. All this information will help in efficient management of cash.

6. Implementing Financial Controls:

An efficient system of financial management necessitates the use of various control

devices. Financial control devices generally used are: (a) Return on investment, (b)

Budgetary Control, (c) Break Even Analysis, (d) Cost Control, (e) Ratio Analysis (f)

Cost and Internal Audit. Return on investment is the best control device to evaluate

the performance of various financial policies. The higher this percentage better may

be the financial performance. The use of various control techniques by the finance

manager will help him in evaluating the performance in various areas and take

corrective measures whenever needed.

1. Proper Use of Surpluses:

Theutilization of profits or surpluses also an important factor in Financial

Management. A judicious use of surpluses is essential for expansion and

diversification plans and also in protecting the interests shareholders. The ploughing

26
back of profits is the best policy of further financing but it clashes with the interests of

shareholders. A balance should be struck in using funds for paying dividend and

retaining earnings for financing expansion plans, etc. The market value of shares will

also be influenced by the declaration of dividend and expected profitability in future.

A finance manager should consider the influence of various factor, such as:

a) Trends of earning of the enterprises,

(b) Expected earnings in future,

(c) Market value of shares,

(d) Need for funds for financing expansion, etc.

A judicious policy for distributing surpluses will be essential for maintaining proper

growth of the unit

FUNCTIONS OF FINANCIAL MANAGEMENT

27
Executive functions of financial management are:

1. Raising the Funds Required,

2. Assessing Total Capital Requirement,

3. Deciding the Capital Structure,

4. Estimating the Cost of capital,

5. Management of Fixed Capital,

6. Management of Working Capital,

7. Control of Funds,

8. Allotment of Excess Profit,

9. Planning Tax,

28
 10.Performance Evaluation,

11.Helps Management.

Executive functions of financial management are discussed in brief:

1. Raising the Funds Required

Executive functions of financial management are raising the required funds. Funds

can be raised from various sources like issue of shares, debentures, fixed deposits,

bonds, borrowings, etc. The finance executive has to decide the proportion in which

the different sources should be raised.

2. Assessing Total Capital Requirement

Executive functions of financial management are assessing the total capital

requirement. The basic responsibility of the financial executive is to prepare the

monetary plan of the company. At the promotion stage, every firm must estimate its

capital needs. Funds may be required for working capital, promotional capital and

development capital. To avoid over-capitalization and under-capitalization the finance

executive has to access these needs of funds properly.

3. Deciding the Capital Structure

29
Capital Structure refers to the composition of different securities that comprises the

capital of the business. There should be a proper composition of various securities to

avoid an imbalance in capital structure.

4. Estimating the Cost of capital

Executive functions of financial management are estimating the cost of capital. Cost

of capital is the rate at which an organization may pay to the suppliers of capital for

the use of their funds. For E.g. It is expected to pay dividend on equity shares, etc.

5. Management of Fixed Capital

Executive functions of financial management are managing the fixed capital.

Investments should be made in those assets which would satisfy the present as well as

future needs of the company. For proper, a replacement of fixed assets, convenient

depreciation policies should be adopted.

6. Management of Working Capital

The finance executive has to ensure that the company maintain adequate working

capital. Inadequate working capital may bring work of the company to a standstill.

Excessive amount in working capital will block the funds.

7. Control of Funds

30
Executive functions of financial management are controlling the funds. The finance

executive has to ensure that cash is utilized as per the plan and in case of any

deviation, corrective measures should be taken.

8. Allotment of Excess Profit

In distribution of Excess Profit, a firm has two options: To pay dividend or to retain

earnings for expansion and diversification. A firm must strike a balance between the

two choices else distribute the surplus.

9. Planning Tax

Executive functions of financial management are proper planning of taxes. In every

budget, different schemes are announced, which offer tax rebates, deductions, etc. In

order to reduce the tax liability the finance executive has to properly-study the

schemes and then invests accordingly.

10. Performance Evaluation

Evaluating the financial performance is vital executive functions of financial

management. For evaluation, the finance executive may use techniques like ratio

analysis, fund flow statements, etc.

31
11. Helps Management

The finance executive helps the management in decision-making as he is well

experienced with the financial aspects of the company.

Routine Functions of Financial Management: Routine functions are clerical

functions. They help to perform the executive functions of financial management

Routine

1. Maintaining various books of accounts of the companies.

2. Administration of Cash receipts and payments.

3. Maintaining cash balances of the company.

4. Routine functions of financial management are to preserving of securities,

insurance policies and other valuable papers.

5. Preparing of final accounts.

6. Interacting with banks.

7. Keeping record and reporting.

8. Assisting a finance executive in the performance of their roles.

32
FUNCTIONS OF FINANCE MANAGER:

Finance function is one of the major parts of business organization, which involves

the permanent and continuous process of the business concern. Finance is one of the

interrelated functions which deal with personal function, marketing function,

production function and research and development activities of the business concern.

At present, every business concern concentrates more on the field of finance because,

it is a very emerging part which reflects the entire operational and profit ability

position of the

concern.

Deciding the proper financial function is the essential and ultimate goal of the

business organization. Finance manager is one of the important role players in the

field of finance function. He must have entire knowledge in the area of accounting,

finance, economics and management. His position is highly critical and analytical to

solve various problems related

33
to finance. A person who deals finance related activities may be called finance

manager.

Finance manager performs the following major functions:

1. Forecasting Financial Requirements

It is the primary function of the Finance Manager. He is responsible to estimate the

financial requirement of the business concern. He should estimate, how much

finances required to acquire fixed assets and forecast the amount needed to meet the

working capital requirements in future.

2. Acquiring Necessary Capital

After deciding the financial requirement, the finance manager should concentrate how

the finance is mobilized and where it will be available. It is also highly critical

in nature.

3. Investment Decision

The finance manager must carefully select best investment alternatives and consider

the reasonable and stable return from the investment. He must be well versed in the

field of capital budgeting techniques to determine the effective utilization of

34
investment. The finance manager must concentrate to principles of safety, liquidity

and profitability while investing capital.

4. Cash Management

Present days cash management plays a major role in the area of finance because

proper cash management is not only essential for effective utilization of cash but it

also helps to meet the short term liquidity position of the concern.

5. Interrelation with Other Departments

Finance manager deals with various functional departments such as marketing,

production, personnel, system, research, development, etc. Finance manager should

have sound knowledge not only in finance related area but also well versed in

other areas. He must maintain a good relationship with all the functional

departments of the business organization.

35
CHAPTER-2
METHODOLOGY OR
RESEARCH DESIGN

36
OBJECTIVES OF THE STUDY

•To study the profile of Two wheeler Industry in India.

•To study the marketing activities of Honda Motors.
•To study the Dealership profile of Vishnu Honda.
•To study the customer handling practices prior to sale, during sale
and after sale and assesses the satisfaction levels of customers.
•To offer suggestion for improving the customer satisfaction

1.The primary objective is to assess the existing financial position of (ANVITA

HONDA VIJAYAWADA.)

2. . during the study period.

To analyze the financial position of the(ANVITA HONDA VIJAYAWADA.)

3. . during the study period by using ratio analysis.

4. To know the credit worthiness of the company.

5. To analyze the trends of various items which appear in financial statements.

6. To know the company’s liquidity and profitability position by ratios.

7. To offer suggestions for improving financial position of the company, if require.

NEED FOR THE STUDY

8. The need of the study is to analyze the existing situation of the company.

9. The study is necessitated to make aware of the practical knowledge on financial

management.

10.The study gives a clear cut picture of the company regarding their liquidity and

profitability position.
37
11.The study also helps the company to find out its solvency position.

SCOPE OF THE PROJECT:

After globalizations, number of two wheeler markets have

enterd Indian Market.
Newc o m p a n i e s h a v e b e e n s e t u p w i t h f o r e i g n , s p e c
i a l l y J a p a n e s e C o l l a b o r a t i o n b y a l r e a d y established
companies.
Honda motors Japan has set up subsidiary company at Gurgaon ,
India too ffer state of the art Honda two wheelers to Indian makes
Honda motors with its wide productrange has achieved a respectful
market shone with strong dealer network and excellent after sales
services.
Even though there is waiting period for some products,
some are available across the shelf dealerships are upon
not only at metros, but also at urban and semi urban areas.
T h i s i s t o provide prompt after sales services .
it has opened class of art show rooms and work shops at allthe places.
There is a need to study to efforts put in by the Company, Dealers and Service
network to study the extent to which customers are satisfied with the
product, service and allied services etc.
Hence it is proposed to study the Customer Satisfaction levels of Honda Customers
with respect to the product performance, after sales service and other
allied services like finance facility, availability of spares and accessories etc
LIMITATIONS OF THE STUDY:

- The study is limited to Honda Motors Customers who have purchased or come for
serviceto ANVITHA Honda at VIJAYAWAD.
Since a convenient sampling method is adopted, the sample ma y not
be representing all types of customers.
As the study is conducted for a limited period and hence it may not be exhaustive.

38
CHAPTER-3

COMPANY PROFILE

39
COMPANY PROFILE

HONDA MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world largest
manufacturer of two - wheelers, based in India.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the two-wheeler company in
terms of unit volume sales in a calendar year.

HONDA MotoCorp Ltd. continues to

maintain this position till date.

VISION

The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two wheelers. HONDA MotoCorp Ltd., company&
new
identity, reflects its commitment towards providing world class mobility solutions
with renewed focus on expanding company footprint in the global arena.

MISSION

Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers&

needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates.
The company will provide an engaging environment for its people to perform to their
true potential. It will continue its focus on value creation and enduring relationships
with its partners.

STRATEGY

Hero MotoCorp’s key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to invest
in brand building activities and ensure customer and shareholder delight.
Honda Motor Co., Ltd.
40
 today announced its consolidated financial results for the fiscal
fourth quarter and the fiscal year ended March 31, 2010.

Fourth Quarter Results

Honda’s consolidated net income attributable to Honda Motor Co.,
Ltd. for the fiscal fourth quarter ended March 31, 2010 amounted to
JPY 72.1 billion (USD 776 million), an increase of JPY 252.1 billion
from the same period in 2009.
Basic net income attributable to Honda M o t o r C o . , L t d .
per common share for the quarter amounted to JPY 39.78
(USD 0.43),
ani n c r e a s e o f J P Y 1 3 8 . 9 5 f r o m t h e c o r r e s p o n d i n g p
e r i o d l a s t y e a r O n e H o n d a A m e r i c a n Depository Share
represents one common share.
Consolidated net sales and other operating revenue (herein referred to
as “revenue”) for the quarter amounted to JPY 2,279.5 billion (USD
24,501 million), an increase of 27.8% from the same period in 2009,
due primarily to increased revenue in all of the business segments and
currency translation effects.
Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009, revenue for the
q u a r t e r w o u l d h a v e i n c r e a s e d b y approximately 25.4%.
Consolidated operating income for the quart
e r a m o u n t e d t o J P Y 9 6 . 0 b i l l i o n ( U S D 1,033millio
n), an increase of JPY368.2 billion from the same period in 2009, due
primarily to
increased profit attributable to increased revenue, reductio
n i n v e h i c l e c o s t s a s a r e s u l t o f increased production and decreased
SG&A expenses.
Consolidated income before income taxes and equity in
i n c o m e o f a f f i l i a t e s f o r t h e q u a r t e r amounted to JPY 93.5
billion (USD 1,006 million), an increase of JPY 392.2 billion from
the same period in 2009.21

41
Equity in income of affiliates amounted to JPY 23.8 billion (USD 257 million) for the
quarter, an increase of JPY 21.1 billion from the corresponding period last year.

Fiscal Year Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal
year ended March 31, 2010 totaled JPY 268.4 billion (USD 2,885
million), an increase of 95.9%from the previous fiscal year. Basic net income
attributable to Honda Motor Co., Ltd.
Per common share for the period amounted to JPY 147.91 (USD 1.59), an increase of
JPY 72.41from the previous fiscal year.
Conso lidated revenue for the period amounted to JPY 8,579.1 billion
(USD 92,210 million),
ad e c r e a s e o f 1 4 . 3 % f r o m t h e p r e v i o u s f i s c a l y e a r , p r i m a r i l
y d u e t o u n f a v o r a b l e c u r r e n c y translation effects and decreased
revenue in the automobile business.
Honda estimates that had the exchange rate remained the same as the
previous fiscal year, revenue for the period would have decreased by
approximately 7.5%.
Consolidated operating income for the period totaled JPY 363.7 billion (USD 3,910
million),ani n c r e a s e o f 9 1 . 8 % , d u e p r i m a r i l y t o d e c r e a s
e d S G & A e x p e n s e s a n d R & D e x p e n s e s a n d continuing cost
reduction efforts, despite decreased profit attributable to decreased revenue ,the
unfavorable impact of currency effects and the increase in fixed costs
per vehicle as a result of reduced production.Consolidated income before
income taxes and equity in income of affiliates for the period totaledJPY 336.1 billion
(USD 3,613 million), an increase of 107.9% from the previous fiscal year.Equity in
income of affiliates amounted to JPY 93.2 billion (USD 1,003 million) for the period,
adecrease of 5.8% from the previous fiscal year.22

Racing

Honda has always played an important role in motor sports, believing it to be the
springboard for technological advancement.It has also been an aggressive force in the
endurance, motocross and trial races held around thew o r l d .
We, at Honda, are not allowing this momentum to let up,
a s w e p u r s u e e v e n g r e a t e r achievements.
42
Honda has always loved racing, ever since Sochiro Honda took his
company into
motorcycle c o m p e t i t i o n , s o m e t i m e i n t h e 1 9 5 0 s .
H o n d a s e n g i n e e r s h a v e t e s t e d t h e m s e l v e s o n t h e inte
rnational stage, proving their technology to be the best in the world.
These technologies arretested in the extreme conditions of
motorcycle racing, to adapt them f or use in vehicles that plyon roads
today.
In the past, Honda has powered some of the all time great racers, including Redman,
Hail wood,Spencer, Gardner, Capirossi and Doohan, to 39 riders t itles.
Even today, some of the greatestmotorcycle racers, like Alex Baros,
Max Biaggi, Nicky Ha yden ride on Honda bikes, at the races.
Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in
many off-roadraces Michael Doohan riding Repsol Honda's NSR 500.
Technologies like these are not just for the race tracks, but are also incorporated in
our everyday vehicles.
They are first tested, refined and proven under the trying conditions
in the races, and
then finally adapted in the vehicles, so that two wheelers like Activa
and Dio can utilise and benefit from such technologies

ANVITA HONDA COMPANY PROFILE

Anvita Honda in Benz Circle, Vijayawada

Anvita Honda in Vijayawada. Motorcycle Dealers-Honda with Address, Contact

Number, Photos, Maps. View Anvita Honda, Vijayawada on Justdial.

Location and Overview: Dealer of Honda two-wheelers, Anvita Honda in Benz

Circle was established in 2017. Since then it has been making a mark through its
praiseworthy service to the citizens. Running under the flagship of the distinguished
Honda Motor Company, it has been able to maintain the high prestige that the brand
carries.
43
Making available something for all budget types and tastes, the showroom ensures to
meet the needs of different categories of buyers.
Offering one of the best pre-sales and post-sales service, it truly has carved a niche for
itself in the automotive market.

Located in one of the prime locales, the premises can be easily accessed owing to its
position near MG Road, an important landmark of the area.

The dense road network and the easy availability of local transportations make
travelling to and fro a piece of cake for the visitors of this showroom.

Services Offered: Anvita Honda in Vijayawada boasts of an industrial infrastructure

with state-of-the-art facilities, perfect for modern-day customers.

The ample space that it owns has been practically used so that more number of
models can be accommodated under its roof thus enabling clients to enjoy ready
access to them on their visit.

Scooters, motorcycles and superbikes are the three broad categories that the company
deals into featuring top models such as Honda, Honda Unicorn and so on.

There are separate sections for each categories of two-wheelers that makes it
convenient for the visitors as they can quickly find what they are looking for
Accessibility to so many different varieties under a single roof leaves a wide option
for the potential buyers.

A knowledgeable team is available to help visitors understand the features and

functionalities of the vehicles as also provide any kind of information related to the
prices, best offers and anything that is important.

Not only that, there is a team of highly qualified service engineers and mechanics too
who ensure to carry out any sort of repair and maintenance work as is needed post
sales of products.Citizens can walk into the showroom anytime between 09:00-
undefined - 19:30-undefined, during which this two-wheeler shop remains fully
functional.
You can fix visits by directly calling on the numbers: +(91)-9908312922.

44
List of Honda motorcycles

Honda Motorcycles logo

Engine size
Name
(cc)

Beat (FC50) 48

Super Cub C100, CA100, C102, C50, Sports C110, C111. C110D,
49
C114

CB50 49

45
 Engine size
Name
(cc)

Dio 49

Elite E (SB50) 49

Elsinore (MR50) 49

Express (NC50) 49

Hunter Cub (CT50) 49

MB5, MB50 49

Melody NB50, ND50, NP50, NS50 49

Metropolitan Jazz (CHF 50) 49

Metropolitan II (CHF50P) 49

Motra (CT50) 49

MT5, MT50 49

46
 Engine size
Name
(cc)

NCZ50 also known as Motocompo 49

Spree (NQ50) 49

Mini Trail (Z50A) 49

Mini Trail (Z50M) 49

Mini Trail (Z50R) 49

Mini Trail (Z50J) 49

Moped (P50, P25) 49

Moped (PA50/Hobbit/Camino) 49

Moped (PF50/Amigo) 49

Moped (PC50, PS50) 49

Moped (SFX50) 49

47
 Engine size
Name
(cc)

Moped (SH50) 49

Moped (X8RS) 49

SGX50 (Sky) 49

SS50 49

Trail 50 (C100H, C100T, CA100T) 49

XR50R 49

ZB50 49

Zoomer/Ruckus (NPS50) 49

AC15 50

Super Cub C105, CD105, Honda C115 Sports 54

Trail 55 (C105H, C105T, CA105T) 54

48
 Engine size
Name
(cc)

Super Cub C65, S65 63

C70 Passport, CD70 72

Motosport (SL70) 72

Motosport (XL70) 72

ST70, CT70 Trail 70 72

Scrambler (CL70) 72

XL80 79

Aero 80 (NH80) 80

XR80 80

CR85R Expert 85

Super Cub C90 (12 volt) 86

49
 Engine size
Name
(cc)

Super Cub CM90, Honda Trail 90 C200 87

Trail 90 (CT200) 87

Super Cub CM91, C90 (6 volt), CD90 89

Trail 90 (CT90) 89

S90 CS90, Sport 90, Super 90 90

Super Cub C100EX 97

Astrea Prima (C100EX) 97

Astrea Grand, Astrea Impressa, Dream 100, Astrea Legenda

97
(C100EX)

Astrea Supra 100 Series (C100EX) 97

SupraFit, FitX, Wave 100(NF100) 97

Revo 100 (NF100) 97

50
 Engine size
Name
(cc)

Bravo 100

Scrambler (CL100) 100

H100S Super 100

Bali also known as SJ 100 100

Dio/Lead 102

Trail 110 (CT110) 105

GL-100 ASIA 105

Activa 109/125

51
CHAPTER-4

ANALYSISAND
INTERPRETATION

52
EMI CALCULATION

LOAN 200000
TENURE 1.5 YEAR
NO.OF
PAYMENTS 18
RATE OF
INTEREST 12% 0.01
MONTHLY INR
PAYMENTS (12,196.41)

MONTHLY PAYMENT
STATEMENT
NO.OF
PAYMENTS EMI INTEREST PRINCIPAL BALANCE
0 200000
1 12196.41 2000 10196.41 189803.6
2 12196.41 1898.036 10298.374 179505.2
3 12196.41 1795.052 12196.4 167308.8
4 12196.41 1673.088 12196.4 155112.4
5 12196.41 1551.124 12196.4 142916
6 12196.41 1429.16 10767.25 132148.8
7 12196.41 1321.488 10874.922 121273.8
8 12196.41 1212.738 10983.672 110290.2
9 12196.41 1102.902 11093.508 99196.66
10 12196.41 991.9666 11204.443 87992.22
11 12196.41 879.9222 11316.488 76675.73

53
 12 12196.41 766.7573 11429.653 65246.08
13 12196.41 652.4608 11543.949 53702.13
14 12196.41 537.0213 11659.389 42042.74
15 12196.41 420.4274 11775.983 30266.76
16 12196.41 302.6676 11893.742 18373.02
17 12196.41 183.7302 12012.68 6360.337
18 12196.41 63.60337 12132.807 0

Advantages of Using Bike Loan EMI Calculator:

The benefits of using an EMI calculator are plenty. Let's explore some of the
most prominent ones.

Helps in knowing the EMI value:

The primary use of this tool is to know the precise amount you will be paying
every month. Getting the numbers beforehand helps in sorting your monthly
budget. It eliminates the need for manual calculations and ensures accurate
results.

Aids in choosing the term:

Once you have a definite EMI amount, it becomes a lot easier to choose the
tenure of the loan. If you feel the value is a burden on your wallet, a higher
tenure will do the trick by proportionately bringing down the value.

Helps in comparison:

54
If you’ve been offered loan from two or more banks for the motorcycle
purchase, using this tool to compare the costs involved will do the trick by
helping you choose the most suitable loan offer. Get the quote, use the
calculator and jot down the outcome to compare on specific parameters.

Helps in negotiating:

Once you’re armed with the basics of the financials involved, it helps in
negotiating key terms of the two-wheeler loan with the bank. Components
such as rate of interest, processing fee and others can be easily negotiated
after establishing the ground.

Provides a break up of costs:

This free-to-use tool not only provides the EMI value but also offers useful
information such as the breakup of the charges involved in the loan such as
interest and processing fee.
ELIGIBILITY CRITERIA FOR TWO WHEELER EMI

Owning our own vehicle, be it a car or a bike is a luxury for most Indians. Most
of us feel it is a necessity to own a two wheeler at least in order to improve
our lifestyle. Most of us are also not fortunate enough to have a large sum of
money at our disposal. The best option, many of us find, is to get a two
wheeler loan so we can finance that dream bike.

55
 Two wheeler loan Eligibility Criteria

Particulars Eligibility Criteria

Age 18 or 21 years to 65 years

Employment
Salaried or self-employed
status

Preferred
750 and above
credit score

Employment
At least 6 months in the same job
tenure

Minimum
Pretty low
income

56
 Applicant should be residing in the same space to
Residential
stability
Show residential stability

Permanent
telephone Required
number

 Employment: You must either be employed by a company (salaried), or be

self-employed.

 Age: Many banks offer bike loans to those who are 18 years or older. Many
accept applications from only those who are 21 and above. The maximum
age limit to apply for a bike loan is generally 65 years, but this may also
vary depending on the bank.

 Work experience: It is true that many banks offer bike loans to even
students (under certain conditions), but most banks give preference to
those who have a minimum of one year of work experience.

 Minimum income: Different banks have different expectations when it

comes to the minimum monthly income that is required of you that will
make you eligible for a loan. In general, a minimum of Rs. 5000 per month

57
 is the required income that will make you eligible for a bike loan from most
banks.

 Landline number: It is often necessary in most banks that you provide a

landline number of either your residence or office.

 Residence: Some banks will require that you have been living at the same
residence for over a year.

 Credit History: A good credit score will make it easier for you to get a good
deal on your two wheeler loan. Try to maintain a good credit history in
order to get the best deal possible. Even if your credit history is not in the
best shape, chances are that you will still be approved a two wheeler loan,
but the terms will not be as great as it would be if you have a good credit
history. Sometimes, even the issue of a bad CIBIL score can be skirted
with when taking a bike loan because it comes under the category of a
secured loan, your bike being the security.

 Documents needed: There is a list of documents that you will require to

provide to the bank when you apply for a bike loan. This list may vary
slightly depending on the bank, but in general these are the documents
that you must keep ready:
1. Address proof: You must provide any address proof which prove that
your current address is what you claim it to be. Some of the address
proof that you could provide are your Passport, Driver's License with the
current address printed, Voter's ID, Utility bill (electricity/landline bills) or
rent agreements.

2. ID Proof: a document that proves your identity such as Passport, Pan

card, Driver's license, Voter's ID card.

58
 3. Income proof: One of the criteria that the bank will need you to meet is
the minimum income that you earn per month. You must provide proof
in the form of salary slips of the last 3 months, Latest form 16, Bank
Statement reflecting salary credits for the last 3 months and last
employer's salary certificates.

4. Photographs: You will need to provide a number of recent passport size

photographs.

Two-Wheeler Loan EMIs Per Rs.25,000 for Top Banks in India

In the table given below, we can see the lowest two-wheeler interest
rates and the lowest EMIs of top banks in the country that provide two-
wheeler loans.

We will be assuming that a processing fee of 2% will be charged on these

loans.

The processing fee can change from lender to lender. We have also
assumed that the maximum tenure for these loans ranges from 2 to 5 years.
This can differ from lender to lender.

Let us also presume that the applicant is not interested in prepaying the loan.

Name of bank Lowest EMI (in Rs.)

State Bank of India (SBI) 551

HDFC Bank 514

Punjab National Bank (PNB) 829

59
Name of bank Lowest EMI (in Rs.)

Andhra Bank 535

UCO Bank 554

Allahabad Bank 552

Oriental Bank of Commerce 809

Bank of India 518

Lakshmi Vilas Bank 559

Nainital Bank 1,143

City Union Bank 588

Corporation Bank 559

Saurashtra Gramin Bank 595

Syndicate Bank 538

Punjab & Sind Bank 536

Central Bank of India 515

60
Example: Let us now take a look at a simple example to comprehend how
the BankBazaar two-wheeler loan EMI calculator works.

We will assume that the rate of interest for a particular two-wheeler loan is
11.10% with a processing fee of 2%, which cannot be refunded and which will
be taken for the entire two-wheeler loan amount.

Let us also assume that the borrower does not want to make any
prepayments. The table given below shows the various EMI amounts for
multiple loan amounts and tenures:

Loan amount Interest rate Processing Fee EMI for 2 years EMI for 3 ye
(Rs.) (Mean) (Rs.) (Rs.) (Rs.)

50,000 11.10% 2% 2,333 1,639

1 Lakh 11.10% 2% 4,665 3,279

2 Lakh 11.10% 2% 9,331 6,557

3 Lakh 11.10% 2% 3,817 9,836

4 Lakh 11.10% 2% 18,662 13,114

METHODOLOGY AND SAMPLING

METHODOLOGY:
The study is conducted basing on Primary and Secondary Data Primary data is
collected by administering a structured questionnaire to customers who visit the
dealer for purchase and service.

Data is also collected through personal discussions with the dealer,

sales and service staff and personal observation made during sale and service.
61
Secondary data is obtained from company records, web site, published articles etc.

SAMPLING:
Convenient Sampling method is adopted for selecting the
respondents.
Care is taken to cover customers of all types of Vehicles and age groups etc

HONDA EMI CALCULATOR

EMI Calculator

Outstanding Principle 50000

Rs.

Interest Rate (%) 10

%

Tenure (in Months) 20

Years

Months

Monthly Payment(EMI)

Rs. 2,724
Total Interest Payable

Rs. 4,490
Total of Payments (Principal + Interest)

Rs. 54,490

62
7.EMI MONTHLY BREAKUP.

EMI Monthly Breakup

Month-Year Principal(A) Interest(B)

Nov-2018 Rs. 2,308 Rs. 417

Dec-2018 Rs. 2,327 Rs. 397

Jan-2019 Rs. 2,346 Rs. 378

Feb-2019 Rs. 2,366 Rs. 358

Mar-2019 Rs. 2,386 Rs. 339

Apr-2019 Rs. 2,406 Rs. 319

May-2019 Rs. 2,426 Rs. 299

63
Month-Year Principal(A) Interest(B)

Jun-2019 Rs. 2,446 Rs. 279

Jul-2019 Rs. 2,466 Rs. 258

Aug-2019 Rs. 2,487 Rs. 238

Sep-2019 Rs. 2,508 Rs. 217

Oct-2019 Rs. 2,528 Rs. 196

Nov-2019 Rs. 2,549 Rs. 175

Dec-2019 Rs. 2,571 Rs. 154

Jan-2020 Rs. 2,592 Rs. 132

Feb-2020 Rs. 2,614 Rs. 111

Mar-2020 Rs. 2,636 Rs. 89

64
Month-Year Principal(A) Interest(B)

Apr-2020 Rs. 2,658 Rs. 67

May-2020 Rs. 2,680 Rs. 45

Jun-2020 Rs. 2,702 Rs. 23

CHAPTER-5

SUMMARY,SUGGESTIONS
AND CONCLUSIONS
65
SUMMARY,

SUGGESTIONS

CONCLUSIONS

The project is done at (ANVITA HONDA VIJAYAWADA.)

 to study the financial position by using the techniques of financial statement

analysis by using Ratios

The liabilities of the (ANVITA HONDA VIJAYAWADA.)

 are moving at a constant rate but the assets are fluctuating.

At an overall glance, by analysing the trends in working capital, income levels etc., it

is understood that the (ANVITA HONDA VIJAYAWADA.)

66
present financial position is satisfactory.

SUMMARY

Honda is a major player in Two wheeler market. In India almost every second motor
cycle soldis from Honda.

It is has many award to its credit How strong the brand may be, every organization
has to strive to improve customer satisfaction.

With increasing competition and customer expe ctations, Customer

Satisfaction is the key to success of any organization.

Dealers play a very important role in the marketing of any product.

Their role is vital mainly in the case of consumer durables in general and
automobiles in particular.

Unlike majority of consumer durables, automobiles need periodic

maintenance.

Two wheelers have a peculiar feature as they are used by common man who
hardly has any knowledge of the functioning or repairing of the vehicle, dealers’ role
is very important.
Dealers can enhance or tarnish the image of the company and the product how ever
good it may be.

The strength of Honda motors is its channel partners, and service availability every
where.

The findings of the study are summarized below:

•Majority of the Honda customers are in the age group of 18 to 25 years.

•Majority of them are under graduates.
•Honda two wheeler customers are middle class and upper middle class.
• Normally a customer uses a Honda vehicle to a maximum period of 10 years
•Activa, Unicorn and Shine brands are bread winners to Honda.

67
•Customers buy Honda for its technical features like mileage,
easy maintenance,superior technology etc.,
•Customers buy Honda influenced by their friends.
•Customers normally prefer local dealers and service dealers for buying a vehicle.
•The dealer at Visakhapatnam Vishnu Honda motors is rated high by the40
customers for service and are not loyal to them for after free services are over
•Cost of spares and service is slightly high.

SUGGESTIONS

Regular availability of all models should be ensured.

Efforts have to be taken toensure no stock outs for Activa, Unicorn and Shine.
Dealer has to put efforts to improve qualityof after sales service as majority opined
that they would not prefer the dealer after free services.
Dealer and Company should ensure availability of flagship brand Activa.
Due to non availability ,majority of the prospective customers are shifting to other
company brands.
Customers are suspecting the dealers role in sticking to booking schedule.
Efforts to be taken to ensure transparency in booking. Customer feedback system
after sale and service would improve the image of the dealer.
Dealer has to tie up with banks to provide finance at competitive interest rates.
Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer i.e., Jupiter Honda Dealer as well as the
company has to put all efforts to enhance the image of the brand as well as the
leadership

68
 BIBLIOGRAPHY

Books Referred:

 I.M. Pandey, “Financial Management”, Vikas Publishing’s house Pvt, Ltd.,

 M.Y.Khan – P.K.Jain, “Financial Management”, TaTa Mc Graw-Hill
publishers company Ltd.,
 Prasanna Chandra, “Financial Management” TaTa Mc Graw-Hill publishers
company Ltd.,
 R.K.Sharama And Seshi K.Gupta , “Management accounting - Principles
and Practices” Kaylan publishers
Websites:
– http://www.investopedia.com/
– https://www.indiamart.com/
– www.scribd.com

69
Questionnaire
NAME
GENDER
DOB
NO.OF DEPENDANTS
ADDRESS

1. Educational Qualification
10th or below 10+2 or below Graduate

Post Graduate and above Others(please specifY

2. Your residence is

Owned Rented Company Provided

Ancestral/Family PG Accommodation

3. Do you have a vehicle?

Yes No

If Yes,

Four wheeler Two wheeler Other None

Is your vehicle

Financed Owned Company Provided

4. Your Occupation

Salaried Self Employed Retired Housewife

Student NRI(Please specify the country you belong

5. If Salaried, employed with

Private Limited Partnership Proprietorship Public Limited

70
 Public Sector Government Multinational

Mention the type of industry your employed

Advertising/market research Textile Banking Transport

Construction/real estate Travel/Tourism Entertainment/Media

Telecom Consumer goods Insurance Export/Import

Internet services NBFC Call centres/BPO/ITES

Hotel/Restaurant Finance Information Technology

Pharmaceuticals Others
1. If self-employed your firm is

Private Limited Partnership Proprietorship

Your nature of work in the firm,

Broker Journal Landlord Software Professional

Chartered Accounted Films/Entertainment professional

Consultant Lawyer Manufacturer Doctor

Engineer Trade/Distributor Financier Retailers/Grocers

Real Estate Agent

Please specify company name

Designation

2. Are you an account holder in bank?

Yes No

If yes,

Current savings FD Demat

71
Mention the account number

If No,
3. Have you availed loan facilities from any bank?

Yes No

If yes, type of loan

Car loan Personal loan Consumer durable loan Loan against shares

Housing loan others (please specify

6. If self-employed your firm is

Private Limited Partnership Proprietorship

Your nature of work in the firm,

Broker Journal Landlord Software Professional

Chartered Accounted Films/Entertainment professional

Consultant Lawyer Manufacturer Doctor

Engineer Trade/Distributor Financier Retailers/Grocers

Real Estate Agent

Please specify company name

Designation

7. Are you an account holder in bank?

Yes No

If yes,

Current savings FD Demat

72
Mention the account number

If No,
8. Have you availed loan facilities from any bank?

Yes No

If yes, type of loan

Car loan Personal loan Consumer durable loan Loan against shares

Housing loan others (please specify

73
Mention the loan amount

Name of the bank

9. Are you assessed to tax?

Yes No

Your gross yearly income

Monthly expense

Do you have any other source of income?

Yes No

If yes, please specify

Average income per annum

10. Marital status

Married Single

If married,

Child 1 age

Child 2 age

Child 3 age

74
Mention the loan amount

Name of the bank

4. Are you assessed to tax?

Yes No

Your gross yearly income

Monthly expense

Do you have any other source of income?

Yes No

If yes, please specify

Average income per annum

5. Marital status

Married Single

If married,

Child 1 age

Child 2 age

Child 3 age

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 6. If self-employed your firm is

Private Limited Partnership Proprietorship

Your nature of work in the firm,

Broker Journal Landlord Software Professional

Chartered Accounted Films/Entertainment professional

Consultant Lawyer Manufacturer Doctor

Engineer Trade/Distributor Financier Retailers/Grocers

Real Estate Agent

Please specify company name

Designation

7. Are you an account holder in bank?

Yes No

If yes,

Current savings FD Demat

Mention the account number

If No,
8. Have you availed loan facilities from any bank?

Yes No

If yes, type of loan

Car loan Personal loan Consumer durable loan Loan against shares

Housing loan others (please specify

76
Mention the loan amount

Name of the bank

9. Are you assessed to tax?

Yes No

Your gross yearly income

Monthly expense

Do you have any other source of income?

Yes No

If yes, please specify

Average income per annum

10. Marital status

Married Single

If married,

Child 1 age

Child 2 age

Child 3 age

11. If you have an existing policy with any insurance company as life assured,
assignee, proposer please mention the details below:

Name of the insurer

Sum assured

77
Yearly premium amount

Policy start date

12. Do you have any existing insurance cover premium paying and/or paid up
policies?

Yes No

If yes, mention the company you invested

Sum assured

Type of policy

13. Which formal inflow channels your bank is used now?

□ Western Union
□ Money Gram
□ Kushiara
□ Others (Please specify)……………………………

14. How frequently do you use the following services per month?
I never use Less Over
this than 1 1 to 3 3 to 8 8 to 12 12
service time times times times times

Visiting the
bank branch

Telephone
banking

Online
banking

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 15. What online banking operations do you use the most?

Visiting Telephone Online Other (mail,

branch banking banking ATM, etc.)

Pay bills

Consult balance/bank
statements

Print bank slip or

statement

Open an account

Bank transfer

Investments

Savings

Insurance

Loans and Mortgages

Contact your bank

advisor

16. Do you trust banks that only operate online?

Completely

Somewhat

Dubious

Not at all

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 17. Do you trust the security of online banking services?

Completely

Somewhat

Dubious

Not at all

18. Do you think that human contact is important for banking relation?

Completely

Somewhat

Unsure

Not at all

19.What is the main disadvantages of online banking?

Overall difficulty of using online banking system

Lack of assistance

Security concerns

Limited service (doesn‘t enable all banking operations)

Impersonality of the service

Dependence on internet service

Unreliable

No Disadvantages

80
 20.What is the main disadvantages of visiting a bank branch?

Waiting

Distance (proximity problem)

Opening times

Quality of services

No Disadvantages

21.What would encourage you to use more the online banking services?

Rewards (discounted fees for

certain services)

Simpler/clearer service

Higher security

Phone aid when setting up

Free transactions

Nothing else, I already often use

online banking services

22. What is your option about the customer services after adoption of marketing in
banks?

i) Excellent ii) Very Good iii) Good

iv) Average v) Poor

23. Marketing in banking in Gwalior increase in banking business growth of

Gwalior?

300
i) 0-25% ii) 25-50% iii) 50-75% iv) 75-100%

301
24. What is the impact of fraud after adoption of marketing in banks?

i) Increase ii) Decrease iii) No change

25. How far marketing helps in personal selling and utility services?

i) No change ii) Average iii) Good

ii) iv) Very Good v) Excellent

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