INTRODUCTION TO INDIAN ECONOMY REVIEW:

India is one of the biggest countries with significant diversity. With a land area of 3,287,240
square km and a population of 1,178,732,000, India has abundant natural resources and a
large labor pool to grow at a stupendous rate. Under the present Honorable Prime Minster of
India Dr. Manmohan Singh’s leadership and the manifesting of the liberalization policy, the
Indian economy has picked up steam and has been registering around 7% real growth every
year. The economy was not severely impacted by the global recession of 2007-2009, as tight
fiscal regulations kept credit crisis at bay. The issues weighing down on the Indian economy
are its unemployment rate and a rather constant poverty rate. The unemployment rate grew in
2009 to 10.7% from 10.4% in 2008 and almost 25% of the population lives under the poverty
line. In order to combat this, the Indian administration is keen on encouraging privatization
and improving the employment scenario. Privatization will also attract FDI that can help in
structural improvements and thus trigger growth. India and the Global Economy.

1.1 -India and the Global Economy

India, an emerging economy, has witnessed unprecedented levels of economic expansion,

along with countries such as China, Russia, Mexico and Brazil. India, being a cost effective
and labor intensive economy, has benefited immensely from outsourcing of work from
developed countries, and a strong manufacturing and export oriented industrial framework.
As the economic pace is picking up, global commodity prices have staged a comeback from
their lows and global trade has also seen reasonably healthy growth over the last two years.

 1.1.1-Economic Prospects for 2010

The global economy seems to be recovering after the recent economic shock. The Indian
economy, however, was hit in the latter part of the global recession and the real economic
growth has witnessed a sharp fall, followed by lower exports, lower capital outflow and
corporate restructuring. The global economies are expected to continue to sustain themselves
in the short-term, as the effect of stimulus programs is yet to bear fruit and tax cuts are
working their way through the system in 2010. Due to the strong position of liquidity in the
market, large corporations now have access to capital in the corporate credit markets.
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  India’s Economic Outlook Projection
          
   2007 2008 2009 2010
          
GDP Growth   9.40% 7.30% 5.40% 7.20%

1.2-The Right Place For FDI:

Be it Foreign Institutional Investors (FII) or Foreign Direct Investment (FDI), ever since
India opened up its economy to the world, a plethora of investors have come up, in a bid to
tap the huge potential of the market. FDI has been flowing in at an exponential growth rate
and FII has been around $10 billion from April-September 2009-2010. These investments
have come from the primary market. The amount increased from $7.08 billion in 2006,
according to the Securities and Exchange Board of India (SEBI).

 1.3 - India Economic Development:

Economic development in India still depends on the various sectors that constitute the Indian
economy – agriculture, services and manufacturing industries.

India is rated as one of the top economies in the world in terms of purchasing power parity
(PPP) of the gross domestic product (GDP) by leading financial entities of the world, such as
the International Monetary Fund, the World Bank, and the CIA (as referenced in the CIA
World Fact book).

As far as agriculture is concerned, India is the second largest in volume of output. Certain
related sectors of agriculture have played a major role in the development of the Indian
economy by providing employment to a number of people in the forestry, fishing and logging
industries. In 2009, the agricultural sector contributed 17.5% to the entire GDP, and more
than 50% of the total labor force working in India is employed in the agricultural sector.
Production volume has gone up in Indian agriculture at a consistent rate since the 1950s.
Much of this improvement can be attributed to the five-year plans that were established for
the development of Indian agriculture. Developments in irrigation processes, as well as
various modern technologies used have contributed to the overall advancement of agricultural
processes.

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Substantial amounts of research and development have been carried out in the agricultural
space in India by organizations such as the Indian Agricultural Research Institute, the Indian
Agricultural Research Statistics Institute and the Indian Council of Agricultural Research.

 In the industrial arena, India is 14th in terms of volume of factory output. Various
developmental initiatives are also being carried out in the areas of gas, mining, electricity and
quarrying. All these sectors contribute significantly to the GDP, and provide jobs to India’s
citizens. India is regarded as the 15th best economy in terms of production in the services
sector. A sizeable amount of the Indian workforce is also employed by the service sector. In
the ten-year period between 1990 and 2000, the rate of growth has been 7.5%, up from 4.5%
during the 30-year period from 1951 to 1980.

1.3.1-Problems of Indian economy:

However, as of financial year 2008, situation of Indian economy is far from being rosy. A
number of economic crises have besieged Indian economy of late. Rates of inflation have
been high. Reserve Bank of India, which is apex economic body of India, has been trying its
best to limit rate of inflation to 4 percent but by middle phase of financial year 2008, rate of
inflation had reached 11 percent. This has been highest in last decade and one year.

There have been other problems like increase in expenses of important commodities like food
and oil. India is facing a boom in construction industry, but there are not enough resources.
Problems like these are only adding to India's woes. India has also been hit hard by ongoing
global recession and it is being assumed that it would take a bit of time for Indian economy to
come out of it.

1.4-India's Trade, Exports and Imports:

Having been an agro-based economy, Indian trade has always been devoid of manufactured
or industrial goods. Post liberalization, imports dominated the Indian trade scene in the form
of heavy machinery and information technology products and, thus, created an imbalance of
trade. 

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India Trade: Exports

Indian trade was impacted by the global recession of 2007-2009. Indian exports fell from
$200.9 billion in 2008 to $165 billion in 2009. India ranked 22nd in the world in terms of
export volume.

India Trade: Imports

The Indian economy is headed towards becoming a developed economy and all its sectors are
in need of machinery and energy. Therefore, Indian imports are dominated by crude oil and
machines. In 2009, total imports amounted to $253.9 billion, down from the 2008 figure of
$322.3 billion. India ranked fifteenth in the world in terms of import volume. However, for
India to grow into a superpower, major infrastructural changes, along with socialistic
programs that address issues such as poverty and unemployment, need to be implemented.
The the export and import policy of the country has paved the way for importing and
exporting of need item within and outside the country. And the direct beneficiaries are the
logistic where they play as a middle men role and a liaison role in transports, without which
the survival of the foreign exchange would be in trouble. Since the entire world is hunting for
petroleum products, in future the logistics of any country would be in great trouble unless and
until we enter in to the alternate source of energy.

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 INTRODUCTION:

Logistics (according to CLM) is the process of planning, implementing and controlling the
efficient, cost-effective flow and storage of raw materials, in- process inventory, finished
goods and related information from point of origin to point of consumption for the purpose of
conforming to customer requirements .

Term "logistics" originates from the ancient Greek "logos" ratio, word, calculation, reason,
and speech, oration Logistics is considered to have originated in the military's need to supply
themselves with arms, ammunition and rations as they moved from their base to a forward
position.

Logistics is defined as a business planning framework for the management of material,

service, information and capital flows. Logistics systems have received considerable attention
in the last 10 years as they constitute one of the cornerstones in the design and control of
production systems and the modeling of supply chains.

the main service provided is the movement of goods. The forwarders experience will enable
the provision of advice on the best routing (cheapest, quickest, safest), the best mode of
transport (air, sea, road, rail), customers requirements, packing, insurance, security issues,
and the myriad of regulations that apply in both the country of destination and the country of
origin.

The mission of logistics is to get the right goods or services to the right place, at the right
time, and in the desired condition and quantity in relation to customers order

Main logistics activities and decisions:

 cooperate with marketing to set customer service levels,

 facility location decisions
 transportation activities (eg. transportation mode selection, vehicle scheduling, carrier
routing
 ),
 inventory management (inventory short -term forecasting, planning and control,
 cooperate with production to calculate EOQ, sequence and time production),
 information collection and flows and order processing,
 warehousing and materials handling,
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  Packaging and packing.

2.1-Logistics Management: -

Logistics management is that part of the supply chain which plans, Implements and controls
the efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to meet
customer & legal requirements. A professional working in the field of logistics management
is called a logistician. A logistician is a professional logistics practitioner.

Logistics must make work effectively. This is required by your customers and, in turn, by
your company. For effective logistics, there are four key issues-

2.1.1-Time/service: -
Hours may decide customer service, competitiveness and value-added. Time/service is a
factor of competition, customer requirements, your company's position in the industry, your
corporate culture, how well everyone in the global supply chain works together, and how well
everyone works together in your company. Distance means time. Yet time delays are not
acceptable.
2.1.2-Cost: -
Cost is the key measure by which logistics effectiveness is often measured. Cost control,
containment, and management are important for corporate profitability. Cost has a relation to
service. As we define our service against our costs or costs against service, the give and take
develops into our operating costs and budgets. Logistics cost measurement is a shortcoming
in the present accounting systems.
2.1.3-Inventory management:
Inventory requires to be maintained to take care of needs between the time of demand and
time of supply. Inventory management involved decisions concerning: Buffer stock, Lead
time, Replenishment of stocks.
2.1.4Warehouse Management and Control System: -
There is some functionality overlap, the differences between Warehouse Management
Systems (WMS) and Warehouse Control Systems (WCS) can be significant. To put it simply,
the WMS plans a weekly activity forecast, based on such factors as statistics, trends, and so
forth, whereas a WCS acts like a floor supervisor, working in real time to get the job done by
the most effective means.

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2.2-Subdivisions of logistics management
2.2.1-Business Logistics:
Procuring, moving and storing of R/M and transporting, warehousing and distribution
of F/G. Facilitation of relevant manufacturing and marketing. Making finished goods
available to the customers in the market. Procuring, moving and storing of agricultural
products. Providing competitive edge in commodities market.
2.2.2- Event Logistics:-
The net work of activities, facilities and personnel required to organize, schedule and deploy
the resources for an event to take place and to efficiently withdraw after the event.
2.2.3-Service Logistics:-
The acquisition, scheduling and management\ of the facilities/assets, personnel and materials
to support and sustain a service operation
2.2.4-Military Logistics: -
Design and integration of all aspects of support for the operational capability of the military
forces [deployed or in garrison] and their equipment to ensure Readiness, reliability and
efficiency.
2.2.5-Third -party Logistics: -
Third-party logistics involves the Utilization of external organizations to execute logistics
activities that have traditionally been performed within an organization itself. According to
this definition, third party logistics includes any form of outsourcing of logistics activities
previously performed in-house.
Example: - A company with its own transport facilities decides to employ external
warehouse specialist, this would be an example of third party logistics.
2.2.6-Production Logistics: -
The term is used for describing logistic processes within an industry. The purpose of
production logistics is to ensure that each machine and workstation is being fed with the right
product in the right quantity and quality at the right point in time.
2.2.7-Based on the product –
Distinguished four key decisions and activities areas in the integrated supply chains, such as:
 configuration of product and network, which covers the decisions concerning the main
rules of cooperation,

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  formation of the production network, mainly the choice of production facility and
warehousing locations as well as their capabilities,
 product design with involvement the research and development abilities of suppliers,
 process optimization in order to reduce cycle times and inventory level in the cost-
effective way.

The traditional role and place of small firms within integrated supply chains was mostly
limited.

 delivering raw - materials, parts or modules for the final goods producers,
 delivering customer goods to wholesalers or selling small quantities of this goods to the
final customers,
 providing transportation and forwarding services,
 manufacturing goods and providing other services for market niches which are
considered as not enough profitable for big companies (also as a subcontractor),
 trading under well known brand name of large distribution networks (franchising).

2.3Need of the study :

The basic need of the study of industry prospective, to have a complete idea about the
Logistics organization and financial statements analysis is depict the financial position of a
firm through following ways.

I. A proper analysis and interpretation of these statements enables a person to judge the
profitability and financial aspects of the business.
II. The Financial statement are helpful in assessing corporate expenses, judging credit
worthiness, forecasting bond rating, predicting bankrupt and assessing market risk.
III. The Financial statement provides a summary of accounts of a business enterprise and
to understand the financial performance and condition of a corporation its
stockholder and the application of fund statements.

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 INDUSTRY PROFILE

What is LOGISTICS?
Logistics is about moving materials, information and funds from one business to another or
from a business to the consumer. It is a vital part of the business economic system and is a
major global economic activity. In fact 10-15 per cent of product costs are logistics related.
Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is
estimated between 9 and 20 per cent of its GDP.
Every company dreams of achieving the seven R's - delivering the right product in the right
quantity and the right condition, at the right place, at the right time, for the right customer at
the right cost. Effective logistics management alone can make this possible.
Logistics is one of the oldest and also the newest activities of business management. It
involves combining diverse functions and service providers who may be culturally and
`objectively different.
In the past, quality of products and services was the key differentiating factor for companies
operating in the same market. In due course, quality and low cost became the winning
combination.
Today, responsiveness to the customers' needs is the determining factor. An enterprise that
caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a
potent tool for success in today's competitive business environment.
Logistics is an organized process of managing the flow of merchandise from the source of
supply - the vendor, wholesaler or distributor - through internal processing functions like
warehousing and transportation, until the merchandise is sold and delivered to the end
customer.

Logistics management aims to reduce inventory-holding costs and improve

Profits, while enhancing customer satisfaction. Anything can be ordered online, but
receiving a tangible product is impossible. The difference between e-business success and
failure lies in a company's ability to manage the logistics.

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2.1-History of Logistics:
The Greeks defined logistics as "the science of correct reasoning by means of mathematics".
The first modern use of the term was in the military to identify the process of planning and
coordinating the movement of army and weapon support systems. Good logistics brings out
the ability to move faster and accurately to the battlefront. “If one applies the same to the
business organization, it is one's ability to reach the product to the consumer at the right time,
right place, right quantity and at the lowest cost.” On similar lines, supply chain management
will mean the network of organizations involved in the process by which goods are moved
from producer to consumer and the counter flow of information, to manage the supply chain
as a single entity. `
A prominent application of logistics was in World War II where weapon movements
were coordinated to ensure success. A recent instance of massive logistics initiatives is in the
Gulf war. With increasing competition in the market place, managements started focusing on
customer services in the early 1950s in developed markets such as Europe and the U.S. In late
1960s some of the logistics concepts were tested. Following the oil crisis of the 1970s and the
concept of just in time in manufacturing customer-servicing standards were given more
importance and new integrated logistics models and solutions were born. The emergence of
organized distribution system by department stores and super fast courier service
organizations gave a boost to logistics concepts and strategies. Today all businesses are
looking for seamless transaction systems to co-ordinate their information and material
requirements along the value chain.

At the micro level any manufacturing and marketing company spends 5 - 35 per cent of sales
on logistics. The major cost components are transportation, warehousing and inventory
carrying cost. Improvements in logistics get reflected in a reduction in inventory levels,
shorter delivery schedules, and improved servicing standards with significant savings in total
costs.

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2.2-Logistics Management Process :
Michael Porter in his famous book "Competitive Advantage'' has spoken of the value chain
approach and emphasized logistics as one of the most important tools for competitive
advantage.

The various processes and elements that are part of logistics as a discipline are:
Inbound logistics:
Purchasing, Inbound transportation, Inventory Management. Manufacturing: Production
planning systems, Machine scheduling system.
Outbound logistics:
Order booking process, Distribution management, outbound Transportation and Warehouse
management systems. As customers started demanding improved servicing standards, fast
cycle time has become the key factor for business success, whether it is custom made
tailoring service in Hong Kong or development of a new car in Detroit.

Before delving deep into logistics, a look at the current business scene will be great help.

2.3 -Scenario of Logistics in India :

At present, companies specializing in logistics operations in India use traditional technologies
and cater to stand alone services like transportation, warehousing, clearing and forwarding.
There is tremendous scope to upgrade the technology, integrate the entire supply chain,
improve productivity levels and bring down operating costs. Any technology that can
improve productivity in transportation operations will be a great boom to the economy both
directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the
savings on downstream users of transport will be much higher and the cost multiplier effect
on the economy will be reduced to that extent.
Given the emerging business and technological trends there are possibilities for
adoption of innovative logistics solutions specifically designed for India. In addition, there is
a requirement for an integrated strategy towards developing logistics and its related IT
infrastructure and also enhancing its industry base.
In recognition of the growing need for technology-enabled solutions in logistics in
India and abroad, many companies such as e-Logistics are taking shape. In fact, there are a
dozen multinational logistics companies such as Exel, Bax Global and Menlo which have
started operations in India during the last few years.
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Today logistics management in India has become complex with about ten million
Related outlets to cater to the needs of 1000 million people.
The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13
per cent of the GDP. It is much higher than for the U.S. but lower when compared to
countries like China and Korea.

A reduction in logistics costs by one percentage point will mean a saving of $4.8 Billion or
Rs. 21,600 crores annually. Besides significant benefits can be reaped through the multiplier
effect of better Logistics on all economic sectors.

2.4-Government action to logistics industry in India:

 Introducing policy measures to represent to the railways to endow a favored

preferential treatment to cement on par with coal and petroleum products

 Promoting cement specific inland waterways and encouraging development of inland

ports and handling facilities dedicated to cement

 Identifying major / minor ports that would be able to support the requirements of
cement exports from major clusters

 Removing the restrictions on constructing port based cement handling facilities

 Proactively pursuing common service providers (experts) for logistics handling,

across multi-modal transport facilities of road, water and rail - in line with
Automotive Industry

2.5- Logistics Industry-Primary Growth Drivers:

Growth Drivers:
 Investment in infrastructure sector amounting to US$ 500 bn.
 Streamlining of the indirect tax structure i.e. introduction of (VAT & proposed
introduction of GST)
 Robust trade growth and liberalization.

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  Globalization of manufacturing system resulting in manufacturers concentrating on
core competencies and availing cost saving potential of outsourcing.

Benefits:
 Increased efficiency and productivity resulting in reduced transit times.
 Reduces the no. of warehouses, manufacturers need to maintain and increases
demand for logistics service providers.
 Increased demand for transportation, handling and warehousing .
 Expected to increase need for integrated logistics solutions.

2.6-INDIAN TOP 10 LOGISTICS COMPANIES

1. TNT
2. AFL
3. DHL
4. BLUE DART
5. GATI
6. SAFEXPRESS
7. ASHOK LEYLAND
8. AGGRAWAL PACKERS AND MOVERS
9. DTDC
10. FIRST FLIGHT

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 COMPANY PROFILE
A rapidly growing third-party logistics (3PL) firm, ARUN SELVAN LOGISTICS provides
best-in-class outsourced product fulfillment, transportation and warehousing services for the
electronics industry, manufacturers and consumer goods industry, shipping to retail.
Competitive Advantage

In today’s economy, there obviously has to be a compelling reason to change providers, and
the company offers that reason with their core competencies and proven capabilities.
Competitive advantage is simply that the company executes the basics better and offers a
complete turnkey solution using a best industry practices at a competitive cost. The company
can effectively transition clients to ARUN SELVAN LOGISTICS without disruption in their
business; this allows our clients to focus on their core competency of marketing and selling
and allows ASL to focus on our core competencies of distribution and fulfillment.
First and foremost a professional services firm, ASL provides exceptional 3PL services at a
competitive cost.

3.1-About ARUN SELVAN LOGISTICS:

ARUN SELVAN LOGISTICS is a third party logistics company providing comprehensive

supply chain management solutions with a national network. A privately owned company,
headquartered in India’s silicon city, Bangalore, ASL provides supply chain management
solutions that are flexible, scalable and offer visibility throughout the supply chain. ASL
operates with honesty and integrity.
Founder of the company Mr. Arun & Mr. Selvan two Brothers
Key Stats:

Founded 2005, Bangalore

Nature of Service Leading 3rd party Logistics Firm

Turn over IN excess of INR 250 core
Workforce Approximately 300
Infrastructure Over 200,000 sq. ft of Warehouse space

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 Presence 25 Branches in India

BRANCHES

EAST WEST NORTH SOUTH

Patna Ahmadabad Ludhiana Bangalore(4)

Bhubaneswar Mumbai New Delhi Chennai

Gunahati Baroda Ambala Pondicherry

Kolkata Pune Jaipur Cochin

Ranchi Indore Noida Hyderabad etc….

3.2-Clients:

ASL’s focus is on improving the service level that company’s clients are able to deliver to
their customers. Company’s mission to exceed their customers’ expectations will lead them
to profitable growth. Company takes cost out of the pipeline by managing the flow of
products and information with a chain-wide view.

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 AND MANY MORE………..

3.3-Basic philosophy:

ASL basic philosophy is that the distribution business is a simple business. At every
opportunity, we strive to simplify and take complexity out of the system. Our customized
solutions are very straightforward. We invest our resources in information systems and
training of our personnel. Both of these investments allow our people to perform to their
maximum capabilities.

3.4-Vision & Mission

Vision

Be the trusted partner to provide world class logistics and supply chain management services
to our customers and reach a market share of Rs. 100 crore by 2011

Mission

To be the most valuable link in our client’s supply chain through positioning the right
products, at the right place, at the right price, at the right time, in right condition.
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3.5-Quality Consciousness :

ASL Quality Policy

We are committed to provide excellent integrated logistics service to

customers duly meeting their quality and Delivery requirements with emphasis
on total customer satisfaction, long term relationship and also continual
improvement of the Quality Management System.
3.6-STRATEGIC OBJECTIVES
i. Sustained growth-optimising production potential in least possible time.
ii. Leadership in niche market and customer oriented marketing.
iii. Internationalisation of business.
iv. Cost competitiveness with international bench-marking.

3.7-SAFETY AND HEALTH POLICY

We are committed to:

a. Adhere legislation and government regulations related to safety and health in

corporate activity.
b. Foster safety and health awareness among its employees through preventable
measures, continuous development, awareness and improvement in the work
environment.

3.8-CORE VALUES:

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 i. Integrity

ii. Trust

iii. Caring for people

iv. Commitment to excellence

3.9-PROMOTION STRATEGY OF ASL:

1) Promotional tactics like advertisement and other promotional campaigning, but

for the brand building they follow Proper logos of ASL.
2) For Promotion Company launches a new services follow proper usage of ASL
logos on every vehicles, other resources.
3) For promotion company launches a new service which it campus to home by
them they target IIM students and build a strong brand name among them.

3.10-ORGANISATIONAL STRUCTURE

CM & MD

OPERATIONAL HEAD MARKETING HEAD FINANCE HEAD

REGIONAL
MANAGER

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 BRANCH MANAGER BRANCH MANAGER

CLERK
ACCOUNTS EXECUTIVE

DATA ENTRY OPERATOR

CLERK

PEON/SECURITY

3.11-DEPARTMENTS AND ITS WORKFLOW PROCESS

(END TO END)
Operation, Accounts, Marketing,

Work flow process for B TO B structure:

CLIENT ORDER ORDER

PLACEMENT PROCESS
CONSIGNEER

VERIFICATION OF GOODS

INVOICE PREPARED

VEHICLE
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SUPPORT
 VENDER’S
VEHICLE(3rd party)

ASL VEHICLE

ASL(HUB) WAREHOUSE

DOCUMENT
GENERATION

INVOICE PREPARED

DATA ENTRY (ERP)

THC SHEET (Truck MENIFEST POD COPY CONSIGNEE A/C COPY

hire contract) COPY

LOADED GOODS SENT TO BRANCHES GOODS DELIVERED TO CONSIGNEE

Accounts:
ACCOUNTS SECTION

POD MAINTANENCE MONEY RECEIPT BILLING

3.12-FUNCTIONAL OF DEPARTMENTS:

3.12.1-OPERATIONAL DEPARTMENT

 Responsibility to focus on storage planning and management;

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  Warehouse property insurance company of all the work and is responsible for the
timely processing of claims related to post-Chuxian work;

 At any time of verification and control inventory throughout the warehouse is

responsible for verification of “inventory daily report”, “monthly inventory counts,”
and “slow-moving machine weekly report” and other relevant statements of inventory
of goods between the various warehouses allocation procedures and the handling of
related documents;

 Position is responsible for overall management of the total work;

 Is responsible for timely and correctly handle the warehousing of emergency.

 Overall guidance, monitoring, evaluation and coordination of the work of the various
branches of the warehousing distribution in order to meet the needs of the local
market sales;

3.12.2-ACCOUNTS:

 To develop the company’s annual financial budget, final accounts audit program.
 The development companies to increase or decrease the registered capital program.

 In accordance with relevant state laws and regulations and the company accounting
system, true, accurate and timely reflect the company’s business conditions;

 The Governor’s various economic activities, ensure that the company all economic
activity in accordance with national laws and regulations and the company operating
under the premise of the financial system and ensure the security integrity of the
company’s assets;

 To fulfill the company’s financial management responsibilities and carry out sound
financial budget, control, analysis and evaluation work , the effective use of resources
the company increase the company’s cost-effectiveness;

 Head office logistics costs of the approved and audit work;

3.13 -SERVICES:
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3.13.1-Logistics :
1. Outbound Logistics

Once produced, goods need to be delivered to customers in a cost-effective way that still meets
expectations regarding service and availability. ARUN SELVAN LOGISTICS puts its extensive
experience in warehousing and distribution of finished goods at the disposal of clients countrywide.
Throughout the network, we manage and operate warehouses on behalf of our customers with a
combined space of more than 2 lakh square ft. In most of these warehouses ASL stores finished
products and spare parts. For straightforward storage or other regular warehousing requirements we
offer shared facilities, which will lead to lower cost for our customers. We can also design and
implement customized storage facilities with additional features, including:

 Dedicated warehousing
 Multi-user warehousing

We can organize and manage all inbound and outbound transportation among suppliers and
warehouses or production facilities. This can include transport by air, rail or road. We oversee the
transportation arrangement and manage the entire process directly.
2. Inbound Logistic:
Manufacturing and assembly plants need to get parts and raw materials in the right sequence, the
right quantity, the right quality and at the right time. In order to reduce inventory levels,
manufacturers need to streamline their supply chains and increase their visibility.
ASL is an expert in providing inbound logistics to, for example, the automotive industry, electronic
industry.

service extends beyond transportation and warehousing and includes:

3. Kitting

We manage the selection, packaging and delivery of unassembled parts prior to the assembly line,
with the goal of minimizing production and installation time. We integrate the kitting process into
our warehouse operations so that the process becomes a seamless part of the inbound supply chain.

4. Milk runs
we optimize transportation flows, called milk runs, by performing multiple collection or delivery
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routes for customers in the same industry. Instead of arranging for transport from location A to
location B and back, we plan fixed routes with various loading/unloading points, combining the
required orders from different customers at the same time.
This ensures optimal use of vehicle capacity and lower transportation costs. Customers benefit from
more frequent deliveries at a lower cost.

5. Sequencing
Through our sequencing services, we arrange for items destined for a production line to be picked
(and packed) in a specific sequence. By doing this, time is saved and production-line efficiency is
improved.

6. Vendor Inventory Management (VIM)

We manage the inventory of several vendors in one warehouse, related to one or several plants.

Lead Logistics Provider:

After redesigning and optimizing a customer's supply chain, ASL will focus on managing the

information technology and information flows. The Lead Logistics Provider (LLP) concept is based
on the total management of the supply chain. As a Lead Logistics Provider, we provide a wide range
of logistics services to the entire supply chain, sometimes by using carefully selected logistics
partners or transport companies.
Our customer benefits from having just one logistics operator that oversees the entire supply chain.
As LLP, we act as a seamless intermediary between our customer and the subcontracted providers,
thus acting as a single point of contact for our customer.

3.13.2- Warehouse
ASL's warehousing and distribution services are an excellent complement to your transportation
requirements. Goods will move through your supply chain at a high velocity. More importantly, you
will minimize order cycle times and maximize throughput, while reducing capital investment and
inventory carrying costs Warehousing and Distribution services include:

 Shipment Consolidation/De-Consolidation
 Strategic Warehousing

Page | 23
  Pick N Pack
 Cross Docking
 FIFO/LIFO
 Bin management
 Reverse Logistics

Every customer has unique needs based upon their market requirements and manufacturing
constraints. ASL works to design a warehouse strategy with each client to optimize the overall
supply chain efficiency Our WMS System allows you to locate & store products in rack, bin, or bulk
storage configurations and ensures one hundred percent inventory accuracy, precise data
management and full visibility The best part is, warehouse layouts can be customized to meet your
specialized order fulfillment and storage requirements At ASL, the benefits you'll receive from our
distribution services are simple: greater stock turns,

increased product availability, improved reporting, less inventory, reduced order times and more
profitability.

3.13.3- Technology

At A S Logistics we focus on refining and perfecting our customers' logistics business process and
on delivering supporting technology solutions. We have developed a range of supply chain
management, inventory control, transportation and warehousing software that optimizes materialand
information flows.

AS Logistics’’ OASIS (Online-Accurate-Supply chain-Information-System) is a centrally hosted,

integrated suite of supply chain technologies that enables us to manage complex supply chains.
OASIS connects with the partners and supports inbound just-in-time logistics, outbound logistics
and reverse logistics across multiple industry verticals. It integrates transportation, inventory
management, order fulfillment, financial settlement. By integrating all the processes in the supply
chain, each customer is given real-time visibility of inventory, order and shipment status. The
increased optimization of the distribution network leads to improved customer service and enhanced
cost savings.

Oasis is a suite of applications that allows the activities of the supply chain to be analyzed, re-
planned, executed and monitored. No matter how complex the customer's technology resources are,
Page | 24
Oasis can be integrated to optimize costs, functionality and flexibility.

OASIS automatically shares operating data among processes such as strategic planning,
optimization, warehousing activities and back office functions, and creates significant supply chain
efficiencies
The financial settlement module can manage the commercial billing of each movement and
associated ledger posting. A comprehensive integration environment can manage data exchange
with external systems and provide web access. The data warehouse stores all transportation data.

3.13.4- Careers

Employment Opportunities at ARUN SELVAN LOGISTICS

With over 12 crores in annual revenues, and rapidly growing nationwide with a vision of
100 crores by 2011, ASL provides many great opportunities for career growth. ASL is
family owned and operated. Company culture is rooted in strong values of integrity,
character, individual initiative and a commitment to teamwork.

Employment Opportunities in ASL include:

 Accounting/Finance
 Logistics
 Administrative
 Warehouse
 Operations
 Management
 Information Technology
 Sales
 Drivers
 Clerical

Page | 25
  Maintenance
 Human Resources

14-SWOT ANALYSIS:

Strength:

 Distribution channel of ASL

 Working 6 days a week

Page | 26
  Next day delivery services for nearby location

Opportunity:

 Rise in demand for courier services

 Global business diversification
 Rise in manufacturing sector
 Development in niche market

Weakness:

 Less use of technology

 Man power
 Less of brand awareness among the people.

Threat:

 Competitors (big brand companies and Unorganized sectors)

 Risk in operational cost.

3.15-Market Analysis :
3.15.1-Market segmentation:

1. On the basis of Income: -

Company make segment on the basis of Income of organization and Size and capacity of
business given to company.
High income customers e.g. HILTI, TATA Motors, Madura Garments, HONDA Motors
and SAMKRG.
Middle income customers- e.g. united color of, TnG Garments, Penguin Publication, Cipla
and Landmark.
Low income customers- e.g. Landmark Publication and students.
2. On the basis of geographical:-
Company divides its market on the basis of size and location of the cities.
Tier1 Cities NCR resign, Mumbai, Kanpur, Kolkata, Pune, Bangalore and Hyderabad
Tier 2 Cities- Jaipur, Lucknow, Jalandhar, Udaipur
Page | 27
Tier 3 Cities- Varanasi, Rajgir, Karnal,
3 . Market Trend: -
Logistics industry trends indicate that in the years to come the following factors, which
guide the logistics industry is reckoned to strengthen further. The factors integration,
confederations, technology, legislation and globalization.

3.15.2-PRICING STRATEGY:
ASL follows a unique pricing Strategy for its customer. It follows two kind of price segment
for customer according to extent of business given to them.
1. Credit Basis
2. Retail Basis

1. CREDIT BASIS:
This service is for the organization who give huge amount of business to company and who
are the long term and regular customer.
There is no fix charges for the services company decide price on the basis of monthly billing
the price is totally negotiation based and payment form the companies is received at the end
of the month from the companies means it is totally credit based.
Importance of Credit Bases:
1. Reduce the cost for the company
2. Helps in building relationship with company

2. RETAIL BASIS:

The retail basis is the price for the customer who is not very heavy user of the services. The
price depends upon following charges

1. Rs 200 fixed charge per safe box

2. Fuel surcharges
3. FTL charge
4. Insurance charge
The freight of the goods depends upon on the medium by which they are carried
1. By Road
2. By Train
3. By Air
The rate is calculated on the basis of
Page | 28
1. By Weight
2. By Volume
By Weight Technique is used for heavy Weight Goods Such as Machine Engine, parts of
machine etc.
By Volume technique is used for light weight products such as T-shirt, shirts, medicines and
FMCG products.

3.16-MICHALE PORTERS FIVE PRINCIPLES APPLYING IN

ASL:

3.16.1. Rivalry among competitors: -

Rivalry among competitors is often the strongest of the five competitive forces.
For ASL competition is from
 Unorganized transporters
 International players like DHL
 Domestic company GATI
3.16.2. Threat from New entrants: -
Company may have the market cornered with the product, but the success may inspire others
to enter the business and challenge your position.
For ASL
 Threat is from various cargo companies which may enter in logistics business
 Threat is also from entry of other international players like UPS
3.16.3. Bargaining power of Buyers:-
The power of buyers describe the effect that your customers have on the profitability of your
business the transaction between the seller and buyers create value for both parties
For ASL
 The bargaining power of buyers is medium because of sufficient number of
logistics companies
3.16.4- Bargaining power of suppliers:-
Any business requires inputs-labors, parts, raw material and service. The cost your inputs
have a significant effect on your company’s profitability
For ASL

Page | 29
The bargaining power of suppliers depends on the
Price of fuel
Government polices
Taxes
Cost of land
Increase in rents

3.16.5. Threats of substitutes: -

Products or services from one business can be replaced by products or services from another
if you produce a commodity product that is undifferentiated, customer can switch from your
product.
For ASL Substitute may be the transporters who give services at cheaper rate.

KEY PARAMETERS FOR PROFITABILITY

4.1- Customer Service :

“Customer services are a process for providing significant value-added benefits
to the supply chain in cost-effective way.” This definition illustrates the trend to think of

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customer service as a process-focused orientation that includes supply chain management
concepts.
It is clear that excellent customer service performance seems to add value for all members of
the supply chain. Thus, a customer service program must identify and prioritize all activities
important to accomplish operating objectives. A customer service program also needs to
incorporate measures for evaluating performance. Performance needs to be measured in terms
of goal attainment and relevancy. The critical question in planning a customer service
strategy remains, does the cost associated with achieving the specified service goals represent
a sound investment and, if so, for what customers? Finally, it is possible to offer key
customers something more than high-levels basic service. Extra service beyond the basics is
typically referred to as value- added. Value- added services, by definition, are unique to
specific customers and represent extensions over and above a firm’s basic service program.

 The three fundamental dimensions of customer service were: -

Availability.
Performance.
Reliability.

About Logistics & Customer Service

Logistics contributes to an organization’s success by providing customers
with timely and accurate product delivery. The key question is who is the customer? For
logistics, the customer is any delivery destination. Typical destination range from consumers’
homes to retail and wholesale businesses to the receiving docks of a firm’s manufacturing
plants and warehouses. In some cases the customer is a different organization or individual
who is taking ownership of the product or service being delivered. In many other situations
the customer is different facility of the same firm or a business partner at some other location
in the supply chain. Regardless of the motivation and delivery purpose, the customer being
serviced is the focal point and driving force in establishing logistical performance
requirements. It is important to fully understand customer service deliverables when
establishing logistical strategies.
Whereas logistics is not capability that contributes to overall success, it is
fundamental to servicing customers. In a typical marketing situation, the desired customer
service performance changes over time. To plan marketing strategy in a dynamic will serve to
illustrate how logistical customer service requirement related to a specific product/segment
situation will change over time. The product life cycle structure offers a useful framework for
Page | 31
viewing the dynamics associated with customer service requirements planning. In terms of
overall logistical performance, the basic customer service platform or program should be the
level of support provided to all customers.

Value Proposition:

Fraud Deterrence/Detection

4.2- Operations efficiencies

4.2.1- Internal Audit Support

Benefits:

• Enhanced Quality and customer satisfaction by aligning cross- functional process

performance

• Recommendations based leading industry practices.

Audit Executed enabled by “

Auto Audit “ tool

4.2.2- Policies & Procedures

Benefits:

• Policies & Procedures Framework aimed at establishing accountability of your

business processes.

• Common understanding of role & responsibilities across functions & locations.

• Streamlining and standardization of process.

Page | 32
 Process Objectives
Define the purpose of the process.
Key inputs
These Would include all documents and
data that act as information to the process.
Key activities
This detail out the sub-processes with their process
maps/activity description and identification Of process
owners.
Key output
These are the output generated as a result of the
Sub processes.
KPIs
The information that enables assessment on the
Performance of the process.

4.2.3- Cost Reduction & Performance Improvement:

A suite of industry-specific Services that Provide Process Improvement and operational

Performance recommendations. Our overall approach:

Step-4

4.2.4- Fraud Investigation:

Benefits:

Proactive Fraud Risk assessments to assist in identifying mitigating controls for potential
areas of leakage.

Regulatory Investigation-examples

4.2.5- Application control Review:

Page | 33
Benefits:

• Assess the adequacy and effectiveness of business controls implemented with in the
application.

Risk assessment:
Identify what can go wrongs in the business
Process implemented with in the application and develop detailed work-
plans for the assessment of controls.
Outcome:
Risk Assessment Report

5.1- MEANING OF FINANCIAL STATEMENT:

Page | 34
 A FINANCIAL STATEMENT is a collection of data organized
according to logical and consistent accounting procedures. Its purpose is to convey an
understanding of some financial aspects of a business firm. It may show a position at a
moment in time, as in the case of a balance sheet, or may reveal a series of activities over a
given period of time as in the case of an income statement.

Thus, the term ‘financial statement’ generally refers to the two statements:

1. The position statement or the balance sheet ,and

2. The income statement or profit and loss account.

These two statements are used to convey to management and other interested outsiders the
profitability and financial position of a firm. Financial statements are the outcome of
summarizing process of accounting.

Financial statement analysis:

The term financial statement analysis also known as analysis and interpretation of financial
statements. It refers to the process of determining financial strength and weakness of the firm
by establishing strategic relationship between the items of a balance sheet, profit and loss
account and other operative data.

Financial statement analysis is the process of examining relationships among financial

statement elements and making comparisons with relevant information. It is a valuable tool
used by investors and creditors, financial analysts, and others in their decision-making
processes related to stocks, bonds, and other financial instruments.

The goal in analyzing financial statements is to assess past performance and current financial
position and to make predictions about the future performance of a company. Investors who
buy stock are primarily interested in a company's profitability and their prospects for earning
a return on their investment by receiving dividends and/or increasing the market value of
their stock holdings. Creditors and investors who buy debt securities, such as bonds, are more
interested in liquidity and solvency: the company's short-and long-run ability to pay its debts.
Financial analysts, who frequently specialize in following certain industries, routinely assess
the profitability, liquidity, and solvency of companies in order to make recommendations
about the purchase or sale of securities, such as stocks and bonds.

Page | 35
5.2- Objectives of Financial Statement Analysis:

Financial statements are the sources of information on the basis of which conclusions are
drawn about the profitability and financial position of a concern. They are the major means
employed by firms to present their financial position. The primary objective of financial
statement analysis is to assist in decision making. The following are the objectives of the
study:

1. To assess the financial performance by selecting few parameters such as liquidity

ratios, solvency ratios and profitability ratios.

2. To provide other needed information about changes in economical resources and

causes.

3. To study the financial position by taking three measures at a time, namely:

a. Liquidity.

b. Solvency.

c. Profitability.

Page | 36
4. To suggest ways to make the best use of available resources and increase profitability.

5. To provide financial information that assists in estimating the earning potential of

business.

6.. To disclose, to the extent possible, other information related to the financial
statements that is relevant to the needs of the users of these statements.

5.3- Types of Financial Statement Analysis:

Types of Financial
Statement
Analysis

Horizontal
Vertical Analysis Ratio Analysis
Analysis

1. Horizontal Analysis: When an analyst compares financial information for two or more
years for a single company, the process is referred to as horizontal analysis,

2. Vertical Analysis: When using vertical analysis, the analyst calculates each item on a
single financial statement as a percentage of a total. The term vertical analysis applies
because each year's figures are listed vertically on a financial statement.

3. Ratio Analysis: Ratio analysis enables the analyst to compare items on a single financial
statement or to examine the relationships between items on two financial statements. After
calculating ratios for each year's financial data, we can then examine trends for the company
across years. Since ratios adjust for size, using this analytical tool facilitates intercompany as
well as intercompany comparisons

Page | 37
 1. Current Ratio
Current Ratio = Current asset / Current Liabilities

Year Current asset Current liab Current ratio

2007-2008 49417786 26243913 1.88
2008-2009 48733234 16453055 2.96
2009-2010 47669020 17541591 2.71

Current ratio
3.5
3
2.5 Current ratio
2
1.5
1
0.5
0
2007-2008 2008-2009 2009-2010

Interpretation

A high current ratio is an indication that the firm is liquid and has the ability to pay its current
obligations in time as and when they become due. Low current ratio represents that the
liquidity position of the firm is not good and the firm shall not be able to pay its current
liabilities in time without facing difficulties. The general rule of thumb expresses that current
ratio should be 2:1. As per the above chart it is found that in the year 2008-09 the current
ratio is higher as compare to previous year. Because in 2008-09 current liabilities is lesser
Then the current asset, but in the year 09-10 again the Current ratio declining , because the
current asset is less than the CL, So over all the company liquidity position is fare enough to
meet the debt, and it is Satisfactory.

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2) Current asset turnover ratio = Total turnover / Current asset

Year Turnover Current asset CATR

2007-2008 172648068 49417786 3.49
2008-2009 155129663 48733234 3.18
2009-2010 155785948 47669020 3.26

CATR
3.6
3.5
3.4
CATR
3.3
3.2
3.1
3
2007-2008 2008-2009 2009-2010

Interpretation
The asset turnover ratio simply compares the turnover with the assets that the business has
used to generate that turnover. Here the above chat showing that in the year 08-09 the
percentage of CATR is lower as compared to previous year i.e 3.18% but again it grows to
3.26.So it is a better indicating where the company can utilizing its asset in better way
.There is a fluctuation in terms of turnover and its asset base. However, the very high net
asset turnover ratio values came when the turnover and asset values were low, so
mathematically this can often mean that the ratio is very likely to be high. So, it's not always
bad when a ratio falls - it should recover, though, as the additional assets start to generate
more sales and profit in the coming months.

Page | 39
3) Return on capital employed: EBIT / Capital employed x 100

Year EBIT Capital employed ROCE

2007-2008 7905858 41318797 19.13%
2008-2009 296413 45903895 0.64%
2009-2010 2946509 44002407 6.69%

ROCE
25.00%

20.00%

15.00% ROCE

10.00%

5.00%

0.00%
2007-2008 2008-2009 2009-2010

Interpretation

The return on capital employed is the prime ratio which measures the efficiency of the
business. It is the prime test of the efficiency of business. It not only measures the overall
efficiency of the business but help in evaluating the overall performance of various functional
area of business. A higher percentage of return on capital employed will satisfy the owners
that there money is profitably utilized. As per the above chart it is found that in the year
2008-09 the ROCE percentage is lower as compare to previous year. Because in 2008-09
there is no proper utilization by the firm. But in the year 09-10 the ROCE percentage is
increasing to 6.69% so its good sign for the investor. But the return percentage is not that
much satisfactory so for that company should utilize its investment properly.

Page | 40
4)Net Profit Margin: Net profit / Revenue

Year Net Profit Revenue NPM

2007-2008 4657773 172648068 0.026
2008-2009 386356 155129663 0.002
2009-2010 1497701 155785948 0.009

NPM
0.03
0.03
0.02 NPM
0.02
0.01
0.01
0
2007-2008 2008-2009 2009-2010

Interpretation
When a company has a high profit margin, it usually means that it also has one or more
advantages over its competition. Companies with high net profit margins have a bigger
cushion to protect themselves during the hard times. Companies with low profit margins can
get wiped out in a downturn. And companies with profit margins reflecting a competitive
advantage are able to improve their market share during the hard times - leaving them even
better positioned when things improve again. The above chat indicate that in the year 08-09
the profit margin in very low from the previous year 07-08. It is not a good sign for the
company. Lower margin indicate the the expenses of the company is more as compared to the
year 07-08. In 09-10 the margin slowly increases to 7% from last year i.e(08-09). So it is the
company should try to minimize its operating expenses.

Page | 41
5) Operating Profit margin: EBIT / Sales x 100

Year EBIT Sales OPM

2007-2008 7905858 172648068 4.5%
2008-2009 296413 155129663 0.9%
2009-2010 2946509 155705948 1.89%

OPM
5.00%
4.50%
4.00%
3.50%
3.00% OPM
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2007-2008 2008-2009 2009-2010

Interpretation
High operating profits can mean the company has effective control of costs, or that sales are
increasing faster than operating costs. The above chat indicate there is decrease in OPM
percentage i.e from 07-08 4.5% to 0.9%. Which indicates that the firms operating cost is
increased. On the other hand the percentage level again increases in the year 09 -10 so here
it’s a good initiative taken by the company.

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6) Debtors Turnover Ratio: Net credit annual Sales / Average trade Debtors

Year Sales Avg.trade DRs DTR

2007-2008 172648068 42087553 4.102
2008-2009 155129663 41233979 3.76
2009-2010 155705948 39778517 3.916

DTR
4.2

4.1

3.9 DTR
3.8

3.7

3.6

3.5
2007-2008 2008-2009 2009-2010

Interpretation
Generally the higher the value of debtors’ turnover, the more efficient is the management of
debtors/sales or more liquidity is the debtors. Similarly low debtors’ turnover implies
inefficient management of debtors/sales and less liquidity debtors. In 2008-09 we have seen
that the DTR is lower i.e.3.76%. It is not good for the company. If the average collection
period is increased than debt will be increased. In the year 2009-10 debtor turnover ratio is
increase i.e 3.9% . From the above chart it is clear that ASL has debtors’ turnover ratio is
below the performance.

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7) Debt equity Ratio: Outsiders Fund / Share holders Fund

year Outsiders Fund Shareholders Fund DER

2007-2008 33904376 20078157 1.68
2008-2009 38060991 24295959 1.56
2009-2010 34211029 27332969 1.25

DER
1.8
1.6
1.4
1.2
DER
1
0.8
0.6
0.4
0.2
0
2007-2008 2008-2009 2009-2010

Interpretation

A high debt-equity ratio indicates that the claims of outsiders (creditors) are greater
than those of owners. A very high ratio indicates that the firm may not be able to get
credit without paying very high rates of interest and conditions of the creditors. A very
low ratio is not good for the shareholders because it indicates that the firm has not been
able to use low cost outsiders’ funds to magnify their earnings. A ratio of 1:1 may be
usually considered to be satisfactory. From the above chart it is found that in 2009-10
debt-equity ratio is low as compare to other years. Continuously it is decreasing trend.
It is clear that the ASL have been maintaining a satisfactory ratio. The firm has been
aggressive in financing its growth with outsiders’ debt.

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8) Return on Net worth : Net profit after interest and tax / Share holders Fund x 100

Year NPAT Shareholders Fund RNW

2007-2008 465773 20078157 2.31%
2008-2009 386357 24295959 1.59%
2009-2010 1497701 27332969 5.47%

RNW
6.00%

5.00%

4.00%
RNW
3.00%

2.00%

1.00%

0.00%
2007-2008 2008-2009 2009-2010

Interpretation

From the above figure the return on shareholder’s investment has been increased in 2008-09.
In 2008-09 the ratio was decreased to 1.59% because of heavy capital expenditure. Otherwise
the return is getting better year after year. In 2009-10 the ratio was 5.47%. ROI is a very good
indicator of judging the utilization of resources and capital of the concern. From the above
chart it is found that the ASL PVT LTD is utilizing the resources in proper way.

Page | 45
9) Gross Profit Margin: Gross profit / Total revenue.

year Gross profit Total revenue GPM

2007-2008 7905858 172648068 0.045
2008-2009 296413 155129663 0.019
2009-2010 2946509 155785948 0.189

GPM
0.05
0.05
0.04
0.04
0.03 GPM
0.03
0.02
0.02
0.01
0.01
0
2007-2008 2008-2009 2009-2010

Interpretation-

Higher ratios better the result. A low gross profit ratio indicates high cost of goods sold due
to unfavorable purchasing policies, lesser sales, lower selling prices etc. from the above chart
the ratio is not very good. The management should minimize its expenses for better results. In
2007-08 the gross profit ratio is high as compare to other years. It is decreasing in year 2008-
09 & 2009-10 due to high cost of goods sold. From the above 3 years in 2008 the gross profit
ratio is very low.

Page | 46
 FINDINGS:
 The current assets have gradually Fluctuating year by year but current liabilities have
increase to Rs. 1.8 crores in the year 2009-10 as compared to the previous year, higher
than 2007-08 .

 Even though current assets have increased in 09-10. It shows the cash position of ASL
Is low as compared to previous years.

Efficiency of ASL.

 There is a fluctuation in terms of turnover and its asset base. However, the very high net asset
turnover ratio values came when the turnover and asset values were low.
 It shows that ASL’s debtors’ turnover ratio is below the performance. This indicates
the inefficient management to collect the amount in time.

Profitability position of ASL:

I. The gross profit ratio for the year 2008-09 is very low i.e. .019% as compared to
previous years. It indicates, in this year the cost of goods sold is high due to
unfavorable purchasing policies.

II. By analyzing the net profit margin, we can say that profit after tax is not satisfactory
in 08-09 but there is a huge increase in net profit ratio in 09-10 which is a good sign
for the company. But overall the company net profit position is satisfactory.

Page | 47
III. Earnings per share of ASL in 08-09 are Rs 22.62 and in 09-10 it reduces to Rs22.00
which is not a good signal for investment. It shows the investors less interest to
purchase the share of that company as it dives good returns to them.

Long-term position of ASL:

I. From the long –term position point of view, the ASL has been aggressive in financing
its growth with outsiders’ debt. In the year 2008-09, the ASL has maintained a
satisfactory ratio i.e. 1.56 as it is not too high or too l

II. In the year 2009-10, the equity or shareholders fund is slightly increased in compare
to previous years i.e. 11.11% which is acceptable but not satisfactory.

III. The reserve and surplus are not utilizing for the payment of dividends in 09-10 .

Page | 48
 SUGGESTIONS
I. The company should follow an effective system for the improvement or proper
utilization of resources for the better results.

II. The ASL should take an effective steps towards the collection if the amount in time.
By which the cash position of company can also be in good position.

III. To maintain the better working capital turnover ratio, the company should be efficient
in utilization of working capital. i.e. current assets and current liabilities.

IV. The ASL should maintain stable in cost of goods sold to have a good gross margin on
its goods delivered.

V. From net profit ratio point of view, the company has flotation in net margin. But the
company has to maintain uniformity in its net profit ratio.

VI. Higher the equity ratio better will be the solvency position. Even though, for the year
2009-10, the equity ratio of ASL is acceptable but it is not satisfactory. So the
company should try to improve its equity ratio.

VII. Organization can further strengthen the employee strength in the documentation

department. This can lead to further rapidity for operations.

VIII. Organization can initiate Human Resource Department to further enhance employee
motivation. This will have favorable impact for the operational as well as total
strengthening of organization.

Page | 49
IX. Operations with other logistical providers need to be enhanced further for operational
effectiveness, more focus should be given to customer delight and cost effectiveness

X. Client handling and service need to be followed in the same way and can be further
enhanced with more support. This can be achieved by proper guiding of employees
and other workers in the logistical area

LEARNING EXPERIENCE
I strongly believe “Learning is an Experience” and I had been a learning environment which
is truly inspiring and supportive, where I have the opportunity to experience the joy of
learning.  The unmatched Learning Experience stimulates  every individual to  explore their
innate abilities.
I am dedicated to providing the best effort that delivers real benefits for my future and so
adopt the best teaching methodologies to bridge practices, and principles which enables
students to master the business management.
Working at ARUN SELVAN LOGISTICS PRIVATE LIMITED was largely an good
experience with gaining insights to a number of new things. The working environment in
ASL was very cooperative; I had given the work on different branch wise and vehicle wise
MIS report generation. I also worked each segment in an organization followed by the
members. I had also given the work on preparing the cost volume analysis of each vehicle
related to the consignment. I learnt how our theoretical aspects are different from practical
field in the industry I had to put in my own efforts and take initiative to learn and gain
maximum knowledge possible during this period.
.

Page | 50
 BIBLOGRAPHY:

Reference Books:

 Sharma&Gupta, ManagementAccountanc, KalyaniPublisher, plasticote (India), Shahdara

Delhi 2006 Edition,

 Jain & Narang, Financial Accountancy, Kalyani Publisher, TimesPrintoGraphy, New

Delhi (2006 Edition) ,

 Sudhindra Bhat, Financial Management, Excel Book Publisher, excel printers (2008
Edition), New Delhi,

Reference magazine 

i. Business Today 

ii. Business India 

Reference websites 

i. http://www.aslindia.com

ii. http://www.google.com

iii. http://www.wikipedia.com 

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 ANNEXURE

 Companies Annual Report

 Balance Sheet
 Profit and Loss Account

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 ARUN SELVAN LOGISTICS PRIVATE LIMITED
Balance Sheet As at 31st March 2010
(Amount in Rs)

PARTICULARS As of 31.03.2010 As of 31.03.2009 As of 31.03.2008

Sources Of Fund:

Equity share capital 20,000,000 20,000,000 14,500,000

Reserve and Surplus 7,332,969 4,295,959 5,578,157

Secured Lone 14,462,335 16,404,668 13,580177

Unsecured Lone 2,207,103 5,203,268 7,616,578

Deffered tax asset (646,809) 43,885

Total 44,002,407 45,903,895 41,318,797

Application Of Fund:

Fixed asset
Gross Block 21,529,831 21,350,779 20,978,759

Less: Provision for Depreciation 13,056,508 11,922,221 6,419,699

---------------- ----------------- ----------------

8,473,323 9,428,558 14,559,060

Investments Nil Nil Nil

Deffered tax Asset 275,343 646,810 Nil

Current Asset, Lone and advance

Current Assets:

Sundry debtor 39,176,628 40,380,406 42,087,553

Cash in hand and bank 217,539 1,616,642 624,001

Other current asset 8,274,853 6,736,186 6,706,232

Lone And Advances 5119180 3,534,100 3,564,492

Less:

Current Liability and provisions 17,541,591 16,453,055 26,243,913

Net Current Asset 35,246,617 35,814279 26,738,365

Miscellaneous Expenditure 7,124 14,248 21,372

TOTAL 44,002,407 45,903,895 41,318,797

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 ARUN SELVAN LOGISTICS PRIVATE LIMITED
Profit & Loss Account for the year ended 31st March 2009
Particulars Year ended (31.03.2010) (31.03.2009) (31.03.2008)

Income:

Income from Operation 155,744,953 117,062,665 153,468,440

Other Income 40,995 55,609 19,179,628

Total Income 155,785,948 155,129,663 172,648,068

Expenditure:

Operational expenses 107,719,110 101,979,987 108,070,675

Personnel Cost 20,082,656 23,520,127 26,442,143

Administrative Expenses 19,529,002 19,571,003 22,595,732

Finance cost 2,827,949 4,252,487 2,714,206

Depreciation 2,673,597 5,502,522 4,932,329

Preliminary Expenses Written Off 7,124 7,124 7,124

Total Expenditure 152,839,439 154,833,250 164,742,210

Profit before Taxation 2,946,509 2,96,413 7,905,858

Less: Provision for taxation

Current Tax 1,077,341 100,751 2,610,000

Fringe Benefit Tax ------- 500,000 594,200

Differed Tax Asset (371,467) (690,649) (43,885)

Profit After Taxation 1,497,701 386,356 4,657,773

Add: Profit Brought Forward 4,295,958 5,578,157 5,420,383

Add: Depreciation Excess Claimed in( 08-09) 1,539,309 -------- ------

Less: Dividend & Tax Thereon ---- 1,668,555 -------

Transfer to Bonus Share ----- ------- 4,500,000

Net Profit Transfer To Balance Sheet 7,332,969 4,295,958 10,078,156

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