INTERNSHIP REPORT

On

“Lumax Auto Technologies LTD”

Submitted by
BADRI K B
1SP23BA006

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI.

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE DR. EXTERNAL GUIDE
S. B. ANIL KUMAR Ms. APARNA HR,
Head of the Dept., MBA Dept. Lumax Auto
of MBA, TOCE Technologies LTD

S E A COLLEGE OF ENGINEERING

AND TECHNOLOGY, BANGALORE-560068

2023-2024
 SOUTH EEAST ASIAN COLLEGE OF ENGINEERING
AND TECHNOLOGY, BANGALORE-560068
(Recognized by the Govt. of Karnataka, Affiliated to Visvesvaraya Technological
University, Belagavi & Approved by A.I.C.T.E. New Delhi, accredited by NAAC with A & NBA New
Delhi and Recognized UGC Under Section 2(f))
Bommanahalli, Hosur Road, Bangalore –560068.
: 080 -61754601/602, Fax: 080 – 25730551 E-mail: [email protected]

Web: www.theoxfordengg.org

CERTIFICATE

This is to certify that BADRI K B bearing USN: 1SP23BA006, is a bonafide student of

Master of Business Administration course of the Institute (Batch 2022-2024) affiliated to
Visvesvaraya Technological University, Belagavi. The Internship report on “LUMAX AUTO
TECHNOLOGIES LTD” is prepared by her under the guidance of Dr. S. B. ANIL
KUMAR, Head of the Department MBA, in partial fulfilment of the requirement for the
award of The Degree of Master of Business Administration of Visvesvaraya Technological
University, Belagavi, Karnataka.

Signature of Internal Guide Signature of Director- MBA/MCA

For Viva Voce

1)

2)
 DECLARATION
I, BADRI K B, hereby declare that this internship report conducted at LUMAX AUTO
TECHNOLOGIES LTD is record of independent work carried out by me under the
guidance of Dr. S. B. ANIL KUMAR, Head of the Department MBA, The S E A College
of Engineering and Technology.

I declare that this internship report is towards the partial fulfilment of the university regulation
for the award of the degree of Master of Business Administration by Visvesvaraya
Technological University, Belagavi.

I have undergone an internship report for a period of four weeks. I further declare that this
internship report is based on the original study undertaken by me and has not been submitted
for an award of any degree from any other institution or university.

DISCLAIMER
The enclosed document is the outcome of student academic assignment and does not
represent the opinion/views of the University or the institution or the department or any other
individuals referenced or acknowledged within the document. The data and information
studied and presented in this report have been accessed in good faith from secondary
sources/web sources/public domain, including the organization’s website, solely&
exclusively for academic purposes, without any consent/permission, express or implied,
from the organization concerned. The author makes no representation of any kind regarding
the accuracy, adequacy, validity, reliability, availability, or completeness of any
data/information herein contained.

Place: Bangalore Date: Signature of Student

USN: 1SP23BA006
 ACKNOWLEDGEMENT
I like to take this opportunity to convey my sincere thanks to Dr. S. B. ANIL KUMAR, Head
of the Department MBA, The S E A College of Engineering and Technology. And I wish
to express my profound gratitude to Dr. K Tharaka Rami Reddy, Dr. Sahana A, Dr. V
Lakshmi Suneetha and Dr. Harish N, Faculty, Department of MBA, for their constant
encouragement and guidance throughout the completion of the study.

It is my foremost duty to express my wholehearted thanks to my guide Dr S. B. ANIL

KUMAR, Head of the Department MBA, The S E A College of Engineering and
Technology For her invaluable guidance, support, and motivation during this project work.
Her inspiration at every stage of my work has helped me immensely in the completion of this
project work and preparation of the report.

My profound thanks to Ms. Aparna, HR – LUMAX AUTO TECHNOLOGIES LTD who

took a keen interest in explaining concepts and imparting necessary inputs pertaining to the
project work, without which, it would not have been possible for me to complete this work.
I am also thankful to his executives and staff of the company for their co-operation.

My special thanks to faculty members of the department for their constant support and
encouragement, which contributed towards the successful completion of the work. Last, but
not least, I am indebted to my family members and friends for their precious help and
encouragement who directly helped me to accomplish this project report.

Place: Bangalore Date: Signature of Student

USN: 1SP23BA006
 TABLE OF CONTENTS

SL CHAPTER CONTENT
No. PAGE
No.
1 1 1. INTRODUCTION ABOUT INDUSTRY 1-3
1.1 Industry Profile
1.2 Overview of Industry
1.3 Plant Blue print
2 2 2. ORGANIZATION PROFILE 4-13
2.1 Introduction about the organization
2.2 Background
2.3 Nature of the business
2.4 Mission and vision statement
2.5 Workflow model
2.6 Product & service profile
2.7 LUMAX ownership pattern
2.8 Future growth and prospects
3 3 3. MCKINSEY’S FRAMEWORK 14-19
3.1 Introduction
3.2 7S framework with reference to the organization
3.3 Porters five force model
3.3.1 Introduction
3..3.2 Porters five force model with reference to the
Organization
4 4 4. SWOT ANALYSIS 20-21
4.1 Introduction
4.2 SWOT Analysis with reference to the organization
5 5 5. ANALYSIS OF FINANCIAL STATEMENT 22-49
5.1 Balance sheet Ratio analysis
5.2 Profit and loss statement
5.3 Common size for the year 22-23
5.3.1 Common size for the year 21-22
5.4 Comparative P/L statement for the year 22-23
5.4.1 Comparative P/L statement for the year21-22
5.5 Comparative balance sheet for the year 22-23

5.5.1Comparative balance sheet for the year 21-22

5.6 Ratio analysis
6 6 6. LEARNING EXPERIENCE 50-51
7 7 7. BIBLIOGRAPHY 52
LIST OF TABLES
SL.NO PARTICULARS PAGE NO
1 Ownership Pattern 12
2 The 7’s different types of hard and soft 15
elements
3 Current Ratio 41
4 Quick Ratio 42
5 Proprietary Ratio 46
6 Cash Ratio 48

LIST OF GRAPHS

SL.NO PARTICULARS PAGE NO

1 Ownership Pattern 12
2 Current Ratio 41-42
3 Quick Ratio 43-44
4 Absolute Liquid Ratio 44-45
5 Proprietary Ratio 46-47
6 Cash Ratio 48-49

LIST OF FIGURES

SL.NO PARTICULARS PAGE NO

1 Workflow model 8
2 Company services 10-11
3 McKinney’s 7s framework 14
4 Porter’s five force model 17

5 SWOT analysis 20
 EXECUTIVE SUMMARY

The internship project’s primary objective is to offer an opportunity to a student to help

them connect theoretical classroom knowledge to practical organizational operations.
It also provides the student with exposure in understanding the dynamics of the
organization and functions of the managers. The student also gains valuable insights
into the practical application of concepts in the real-world professional environment.

This internship report gives an overview of my experience at Lumax Auto

Technologies LTD, Kolar where I worked as a HR Training and Development for one
month, from 25th November 2024 to 22st December 2024 as a part of the MBA
Curriculum at The Oxford College of Engineering, VTU University.

Throughout my internship, I was exposed to the day-to-day operations of at Lumax

Auto Technologies LTD enabling me to observe and understand how the employees
navigate challenges, make decisions, and drive the overall success of the organization.
This learning opportunity helped me gain a lot of knowledge about the HR training
and development at a manufacturing industry firm and also outlines other key aspects,
including the projects undertaken, organizational structure, tasks performed, and
challenges encountered at a manufacturing industry firm. It also highlights the skills I
developed, lessons learned, and personal growth in a professional environment. The
data collected from different sources during my internship period were classified,
analyzed, and interpreted which helped me reinforce classroom teachings and witness
the dynamic actual business scenarios.

This executive summary provides a snapshot of my learning experience gained during

my internship at Lumax Auto Technologies LTD, helping me understand the program's
significance in shaping me into a well-rounded, industry-ready professional.
 CHAPTER- I

INTRODUCTION ABOUT THE LUMAX AUTO

TECHNOLOGIES LIMITED
Organizational Study at LUMAX Auto Technology Ltd

1.1 Introduction about Construction Industry

Lumax Auto Technologies Limited in Narasapura Kolar, Kolar is known to satisfactory cater
to the demands of its customer base. It stands located at no. 334, 366 & 67, Bellur village
Narasapura 563133. Lumax Auto Technologies Limited (LATL) Is among the largest
automobile ancillary manufacturing in India with a diversified portfolio of products and
Marquee client base. The outlook for automobile demand is improving and the company is
witnessing increasing of take for each product. Lumax Auto Technologic is a part of DK JAIN
groups. The company get down to business its operation with the manufacturing of Two
wheeler spare parts under the continuous good leadership and vision and mission of the group.

Lumax Auto Technologies coved a whole familiarity in the automotive product like intake
system, integrated plastic moulding 2-wheeler like Upper Case, Luggage Box, Cover Centre,
Cover Inner, Cover FR CTR, Cover Handle RR, Cover Handle FR, Cover Under, Step Floor,
Shround Inlet, Fender Rear, Upper Lower Etc. For two-wheeler and four-wheeler segments
with an experience and involvement of over one decade the value and vision and mission of
our founder Mr. DK Jain have led Lumax auto technology to become a market leader in
domestic as well as international business its domain being a customer focused organization it
is always motivated and stimulate to provide the maximum value to its stakeholder, partners,
employees and customers.

Founded in the year 1981, Lumax Auto Technologies is a publicly listed company, which is

part of the Lumax-DK Jain Group. The company commenced its operations with manufacture

of two-wheeler lighting. Under the continuous leadership & vision of the group, Lumax Auto

Technologies has carved a niche for itself in the automotive products like Intake systems,

Integrated plastic modules, 2-wheeler chassis and swing arm, 3-wheeler trailing arm, Gear

shifters, Transmission products, Seat structures, Oxygen sensors, Power window switches,

Antenna systems, Vehicle interior components & systems, Telematics products and services,

etc. for two, three and four wheeler segments with an experience of over four decades. The

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

values & vision of our founder, Mr. DK Jain, have led Lumax Auto Technologies to become a

market leader in its domain. Being a customer focused organisation it is always motivated to

provide the maximum value to its customers, partners, employees and stakeholders. Lumax

Auto Technologies has 22 state-of-the-art manufacturing facilities located across the country.

For providing world-class products and services it has partnered with global automotive

industry leaders such as Cornaglia, Mannoh, JOPP, Ituran, Alps Alpine, Yokowo, IO, IAC and

FAE. Its partnerships and pan-India marketing presence makes the organisation the leading

automotive component manufacturer in the country. The company is amongst the few

integrated players in India, possessing the combination of robust R&D capabilities,

technological competence, ability to design, and manufacture products. It is the only one in the

country having the competencies to manufacture and supply gear levers for electric cars. The

company has also received several awards and recognitions, both domestic and international.

1.2 OVERVIEW OF INDUSTRY

Established in 2013, Lumax-DK Jain Group is one of the pioneers and leading Manufacturer

and Supplier of Automotive Lighting and Transmission components in Indian Automotive

Industry.

Automobile part dealers provide all the necessary products needed to make sure your vehicle
works smoothly. You can either go to a licensed dealer for a certain brand of vehicle or one that
sells cars and motorcycles from many different brands. Automobile dealers provide all the
necessary spare parts for cars locks, navigators, car seats, horns, headlights, sidelights, power
plugs, bumpers, and motorcycle seats. You also can get some other items such as audio,
systems, woofers, battery charges, helmets, and other accessories in addition to extras that
update the appearance.
Lumax Auto Technologies Limited is among the few integrated players in the Indian auto
component manufacturing space with expertise in integrated plastic modules, 2 wheelers(2w)

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

chassis & swing arm, 3-wheeler(3w) trailing arm, 2/3- wheeler lighting, gear shifter and shift
towers, emission systems, seat frames, telematics, oxygen sensors, on board antennas and
electric devices and components.

Within a Journey of Seven decades, the group established a strong legacy and prioritized
meaningful relationships with customers through continual innovations, advanced technology,
and state-of-the-art operating Units. The group gained eminence and market leadership in the
Automotive components space in India, through two listed entities: Lumax Industries Limited
(LIL) and Lumax Auto Technologies Limited (LAIT).

Today, the Lumax-DK Jain Group enjoys almost four decades association with Japan based
Stanley Electric Co. Limited. Moreover, the Group has successfully entered total of nine Joint
Ventures with globally renowned companies from Germany, Italy, Israel, Japan, Korea and
Spain. The Group focuses on Long-Term growth and sustainability for all its stakeholders.
Through its ‘Customer-First’ approach, the group aspires to offer value bound with trust while
consistency moving ahead with its pursuit for development. The Opportunity of being a
potential leader in the Automotive two-wheeler and four-wheeler components Industry. Lumax
took firm hold of this opportunity and turned it into a reality lived every day by its 12,000-
strong workforce with good infrastructure working across 34 modern manufacturing Locations
across India. Lumax Auto Technologies Ltd is an Indian automotive company the specializes
in Manufacturing and Supplying a wide range of automotive components and Systems. Lumax
is a part of Lumax Group, a prominent player in the Automotive Industry in India. Lumax Auto
Technologies ids Known for its expertise in Manufacturing lighting systems, gear shift systems
and exhaust systems, among the automotive components. With a commitment to innovation
and quality, the company serves both domestic and international markets, contributing to the
automotive sector’s growth and development. Lumax Auto Technologies aims to lower energy
consumption in cooling towers by replacing CI fan with FRP fan and interlocking of CT fan
speed with a cooling tower outlet temperature.The company is also replacing cooling tower
fins so as to reduce the heat transfer area.
3

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 CHAPTER -II

ORGANISATION PROFILE
Organizational Study at LUMAX Auto Technology Ltd

2.1 Introduction about the Organisation Plant

Lumax Auto Technologies Limited in Narasapura Kolar, Kolar is known to satisfactory

cater to the demands of its customer base. It stands located at no. 334, 366 & 67, Bellur village
Narasapura 563133. Lumax auto technologies which is establish in the year 2013 in the
Narasapura Kolar it has 800 plus manpower and more employment opportunity and it going to
facilities the Assembly line ,Injection moulding and Packing are the main activity will be
conducted in the organization and it is certification from ISO14001, ISO/TS16949, OHSAS
18001, TPM, IAT etc. the current and main customer of the company is Maruti Suzuki, Honda,
Mannoh, SL Corporation, Hyundai Transys, Lumax auto technology going to produce both
two wheeler and four wheeler plastic related parts. The organization is divided in to the several
departments like Finance and HR, Production, Packing and Dispatch this department play a
very major role in the company they can also called as pillar of this company the Lumax going
to produce the quality spear part and supply to the customer with the required quantity and right
time so it became the automotive market leader in the Indian market.

Figure: Lumax Auto Technologies Limited in Narasapura, Kolar

Source: https://images.app.goo.gl/Ptoa7LN1xBCQhgz3A

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

2.2 Background of Business

Lumax auto technologies has grown form introduction stage to success since its foundation
in the year 1945, the company came into existing in the year 1984, and in the same year reached
on its highly successful. Technical collaboration with STANLEY, Japan. 12 years of highly
rewiring partnership resulted in STANLEY picking up financial stake in Lumax in the year
1994.

Lumax got a ISO 9002 certification in 1995, attained its QS9000 certification in the year 1998
and achieved the ISO/ 140001 in 2003 in the same year Lumax industries Ltd de-merged from
mirror, lightening and filter division, there-by focusing on its core competency and opportunity
of producing automotive Lighting product.

Lumax has a futuristic vision and mission with an experienced and customer focused

management team. This shows the increasing graph of our financial growth which has seen a

study upward trend line right since our inception.

Lumax endeavour for continual improvement in a manufacturing process with maintaining on

consistent quality and cost effectiveness and time delivery of product so Lumax signifies

“LUMINOSITY MAXIMA” for today’s demanding in the automobile users.

We at Lumax in the new millennium, are committed to retain excellence in quality of our

product, delivering the product at right time and service, with focus towards customer

satisfaction and market leadership. Lumax remain a responsible as a corporate citizen,

contributing to the lives of our people and the presentations of our planet’s eco-balance.

Founded in the year 1981, Lumax Auto Technologies is one of the publicly listed company,
which is also part of the D.K Jain Group. The company commenced its operations with
manufacture of two-wheeler and four-wheeler spare parts. Under the continuous leadership &
vision, mission of the group, Lumax has cover a niche for itself in the automotive products like
intake systems, integrated plastic modules, 2-wheeler chassis & lighting gear shifters, intake

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

systems, lighting, seat mechanisms and structures, electrical and electronics components, etc.
for two, three and four-wheeler segments with an experience of over Ten decades.
Lumax Auto Technologies ltd has 15 state of art manufacturing facilities located across the
country. For providing world-class, quality products and services it has partnered with domestic
and global automotive industry leaders such as Cornaglia, Gill-Austem, Mannoh, Alpine, Ituran
and FAE. It’s partnerships and pan-India marketing presence makes the organisation. It is the
one of leading automotive component manufacturer in the Indian country market. Lumax auto
technologies having 34 manufacturing facilities across the India and with the maximizing the
profit and is committed to maximize overall operation cost by systematic application of total
production management and total employee involvement. This shall be achieved through zero
break downs, zero defectives, zero accidents, ensuring health and safety, Boosting employee
morale.

2.3 Nature of Business

Lumax auto technologies is the one of the biggest automotive manufacturing industries of
lighting and plastic related two-wheeler and four-wheeler product manufacturing. It offers a
wide range of complete automobiles lighting system and plastic related bike part with good
quality and service.

It has collaboration with Japan a global leader Stanley electric company limited in vehicle
lightning and two-wheeler and four-wheeler manufacturing and south Korea SL Corporation, a
multinational automotive component manufacturing to delivers good quality product the
company was publicly listed in the year 1984 and it has 12 manufacturing facilities, with high
infrastructure and 1 R&D centre in Taiwan.

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

2.4 Mission Vision and Objective Statement

Vision: To be a Sustainable, respected and profitable brand with a global presence, that continues to
hance stake holder value and exceed customer expectation as the preferred supplier

Mission: To be a lean profitable, diversified and learning organization that is highly energetic
and innovative by the involving people as partners and attaining highest level of quality
excellence and technology across our domains

Objective: To create a happy safe, participative, proud and admirable place to work that inspires
individuals to constantly deliver total customer satisfaction

2.5 WORKFLOW MODEL

Manufacturing process workflows, or flow charts, detail the activity step by step process to
completed to create finished goods. First step is to receive the raw material from the time raw
materials are received at the manufacturing facility until those materials are put to moulding
machine and its turned into finished goods. Companies in all manufacturing industries are
constantly looking for ways to achieve continuous process improvement.

Workflow models are one of the important tools that can help industry optimize their

manufacturing processes. A Manufacturing workflow is a set of processes that guide equipment

and personnel work from start to finish.

Injection moulding is an important industrial method. It is little bit similar to die casting but
the difference is in raw material used. In die casting we use metals which require extremely
high temperature for melting but injection moulding is mainly done on glasses, elastomers and
most commonly thermoplastic and thermosetting polymers but this technique is widely used
for fabrication of thermoplastic materials. This process is done by heating of raw material and
injecting them into the mould cavity by applying pressure at a specific temperature without any
change in their chemical composition.

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Figure: Organization Plant

Receiving Inspection

• Dimension Confirmation
• Receiving Inspection
• Visual Inspection

Stores

• Palletizing
• Material Issue
• Material Receiving

Injection Moulding

• Material Loading
• Machine Operation

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

• De-Gating
• De-Flashing
• Packing
Assembly

• Taking BOP from stores

• Assembly
• Packing / Conveyer

Finished goods Area

• SAP Entry
• Store Confirmation
• Parts sent to FG area

Pre – Delivery Inspection

• PDI
• Visual Inspection

Dispatch

• Receiving Plan from Customers

• Quality Confirmation
• Invoice Making
• Loading and Unloading

Working of injection moulding similar to extrusion and it works like an injection as name
suggest. Moulding material/ raw material pour into the hopper by feeding device. After that
moulding material goes down under the action of gravity into the cylinder (barrel) as shown in
diagram. A circumferential heater which is located on the barrel is used to melt the material.
When powder form of melding material goes dawn into the barrel from hopper it starts melting
and a hydraulic ram or rotating screw pushes the material forward into the mould by applying
some pressure. Molten plastic material is injected into a closed mould attached on the other side

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

of barrel; in this split mould is used. Moulding material goes forward continuously by the
rotating screw. Pressure applies by the hydraulic system. Injection pressure is generally 100150
MPa. After injection; pressure is applied for some time or locked at same position with some
force.
After the whole process is done the parts manufactured is cooled sufficiently. Then mould is
open and some ejectors are used for proper removal of the part without damage. After removing
the part mould is closed again. This process is very fast and automatically repeated. Here
complex shape parts can be easily manufactured. Production capacity of injection moulding is
12-16 thousand parts per cycle.

Process parameters

• Process parameter varies according to condition and requirements.

• Weight of the parts produced by this process is generally 100 to 500 g.

• Cycle time for produce a single part is generally 5 to 60 seconds depends upon the parts

manufacture.

• Heating temperature of moulding material is 150-350 degree centigrade.

• Injection capacity of moulding machine is 12,000 to 2.2×〖10〗^6 〖 mm〗^3.

• Injection pressure is 100-150 MPa.

• Locking force is 0.1 to 8.0 MN.

10

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 Organizational Study at LUMAX Auto Technology Ltd

2.6 PRODUCT PROFILE

Figure: Lumax Auto Technologies has coved for itself in the automotive manufacturing product

Figure: Lumax Auto Technologies has coved for itself in the automotive manufacturing product for
bike.

11

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Lumax Auto Technologies has coved for itself in the automotive manufacturing product like, integrated

plastic moulding 2-wheeler like Upper Case, Luggage Box, intake system, Cover

Centre, Cover Inner, Cover FR CTR, Cover Handle RR, Cover Handle FR, Cover Under, Step
Floor, Shrouds Inlet, Fender Rear, Upper Lower Etc. For two-wheeler and four-wheeler
segments with an involvement of over one decade the value and vision, mission of our founder
Mr. DK Jain has led Lumax auto technology to become a market leader in its domain and
international being a good quality, service and customer focused organization it will always
motivated build confidence to provide the maximum value to its employees, partners,
shareholder and customers.

2.7 LUMAX AUTO TECHNOLOGY LIMITED OWNERSHIP PATTERN

Shareholding pattern as on March 31, 2023

Table No. 2.7.1

CATEGORY OF DIRECTORS SHARES

56%
• Indian Promoters

• Mutual Funds 4%

18%
• Foreign Institutional Investors and Foreign
Portfolio Investors

1%
• Alternative Investment Funds(loan)

21%
• Others

12

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Graph No 2.7.2

Figure: Graph of a share holders.

2.8 FUTURE GROWTH AND PROSPECTS

• Lumax Auto Technologies is forecast to grow earnings and revenue by 35% and 17% per

annum respectively.

• EPS going to grow by 41.1% per annum.

• Return on equity is forecast to be 21.5% in 3 years.

• To achieve zero accidents

• Free from pollution.

• Using AI tools in manufacturing process.

• Elimination of scrap.

• Achieve zero defect and zero rework.

13

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

• Zero customer complaints.

• Reduce operational cost.

• Boosting employee morale.

• Zero defectives.

14

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 CHAPTER-III

MCKENSEY'S 7s FRAMEWORK & PORTER'S FIVE

FORCES MODEL
 Organizational Study at LUMAX Auto Technology Ltd

3.1 Introduction

McKinsey’s 7s model with assistance from Richard Pascale and Anthony G. Athos, McKinsey
consultants Tom Peters, Robert 3 Waterman, and Julien Philips created the 7s model in the
1980s. Since its release, academics and professionals have utilized the model extensively, and
it is still one of the most well-liked instruments for strategic planning.
In place of the conventional mass-production tangibles of capital, infrastructure, and equipment,
it attempted to emphasize people resources (Soft S) as the key to improved organizational
performance. The model sought to illustrate how a corporation can attain effectiveness by
aligning its seven key components: structure, strategy, skills, staff, style, systems, and shared
values. The model's central idea is that each of the seven

Figure: McKinsey’s 7s model

15

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 Organizational Study at LUMAX Auto Technology Ltd

Hard Element and Soft Element

One can classify the seven factors found in the McKinsey's 7s model as either "hard" or "soft.".

HARD ELEMENT SOFT ELEMENT

• Strategy • Shared value

• Structure • Skills

• System • Style

• staff

3.2 7s Framework with reference to the organization

Structure
Here the companies follow the Vertical Structure, company uses injection moulding
machine for the process of manufacturing the products the process that includes, Receiving
Inspection, Store, Quality Checking, Finished Goods store, packing, Dispatch etc.

Strategy
An organization needs a plan to accomplish its goals. This element is dynamic in that it is
always changing in reaction to external circumstances such as demand, competition, and
technological advancements.

Systems

The procedures that a company has set up. Information systems fall under this category,
together with financial processes, legal guidelines, risk assessments, health and safety, and
compensation and benefits.

16

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Style
The way things are done around here" is a common description of the organizational culture.

This also covers the many leadership and management philosophies.

Achieve total customer satisfaction by delivering products and providing services that meet
or exceed their requirements and expectations and to do so on time and at most competitive
price and export market for its entire range of products.

Skills
The employees of the company are having different skills; they do their work with unity. Each
of them are working in different fields with different skills and talents. These members will
take initiative to solve the problems, they will not be waiting to others to solve it.
Here the employees will be thinking creatively, they are from different places and with different

talented employees.

Staff

The individuals within the company, their abilities, and the process by which they are grown.
Here the employees of company having many benefits. This organization is a manufacturing
sector, there will be getting many accidents in the company, hence they had one committee to
look after these things not to happen. In case any accidents occur, the company was bearing all
the risks, and also, they use to give cab facilities to all the employees from company itself.

Shared Values

The guiding principles that direct the organization’s behaviour. These were originally referred
to as ‘super ordinate goals’ and are often unwritten. Examples of Shared values are Integrity &
Ethics, Respect & Teamwork, and Customer Trust & Delight etc.

17

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

3.3 PORTER’S FIVE FORCE MODEL

3.3.1 Introduction
Porter five force model is one of the tools or a framework you can use to work out how
competitive an industry is, and therefore how attractive that industry is for someone who wants
to enter that industry and achieve high profits.
Industries with intense rivalry typically have smaller profit margins because of the high levels of
efficiency and tightness brought about by the competition. Either enter a less competitive business
or gain enough knowledge of an existing competitive industry to be able to disrupt it if you want
to see large earnings, or profitability.

3.3.2 Porter’s five force model with reference to the organization

Figure: Porter’s five force model

18

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Threats of new entrants

If there is strong threat of New Entrants in Lumax Auto Technologies Limited then current
players will be willing to earn lower profits to reduce the threat from new players. New
companies that enter a market or an industry for the first time, offering a new or alternative
product or service to the existing customers. New entrants can pose a serious challenge to the
incumbent firms, as they may have lower costs, higher quality, better innovation, or more
customer loyalty. New entrants can also disrupt the industry structure, changing the rules of the
game and forcing the incumbents to adapt or exit.

Bargaining power of suppliers

Because there are many different suppliers present, the supplier's bargaining power is limited.
Plastic processing is one of the main raw materials used in the two-wheeler industry. A large
number of suppliers get the majority of their products from one or two automakers. Low
bargaining power is sometimes a result of fierce rivalry. Furthermore, switching costs are
minimal. For instance, it might be disastrous for the previous supplier's business if a two
wheeler company decided to swap suppliers. Because of this, suppliers have very little
authority and must be cautious when meeting the needs and specifications of the
manufacturer. For manufacturers of parts, replacement part longevity is vital. The demand for
replacing parts increases with the amount of time a two-wheeler is used. Conversely, longer
lasting new parts are fantastic for customers but bad news for manufacturers of parts.

Bargaining power of customer

The availability of numerous well-known brands gives consumers significant negotiating
power. Additionally, the purchasers are fully informed about the price and the merchandise.
Customers may start exploring for alternatives if they are unhappy with any of the products that
a certain company is selling. There are other alternatives as well, such as local trains, buses,
autos, etc. On the other hand, despite their extreme sensitivity to pricing, customers often
gravitate toward the alternative possibilities. The industry also has a mismatch between supply
and demand. There is more supply than there is demand.

19

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Threat of substitutes
The possibility that other goods or services could satisfy a comparable need or serve the same
purpose as the goods or services provided by businesses in a given industry is known as the
danger of substitutes. An industry gains appeal when the threat of substitute items is minimal.
It also boosts the industry's companies' potential for profit. On the other hand, a high risk of
alternative items reduces the appeal of an industry. Additionally, it reduces the industry's
potential for profit for businesses. When utilizing Porter's Five Forces framework to analyse
the structural environment of a business, one of the elements to take into account is the
possibility of substitute products.

Rivalry among existing competitors

Because competition demands it, businesses will always try to get an advantage over their
rivals. Because of this, among the five competing forces in any given industry, rivalry is usually
the greatest. It can be characterized as the rivalry that exists between businesses as they strive
to capture a larger portion of the market. Even if competitors are impacted by the same industry
forces as you are, competitive rivalry—which is influenced by the four forces mentioned
earlier—often determines which industry is desirable. Rivals will fight for market share on the
basis of price, quality, service, marketing expenditure, etc.

20

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 CHAPTER-IV

SWOT ANALYSIS
Organizational Study at LUMAX Auto Technology Ltd

4.1 Introduction
A SWOT analysis is a strategic planning and strategic management technique that helps
determine the SWOTs (Strengths, Weaknesses, Opportunities, and Threats) of an individual or
an organization with regard to project planning or commercial competitiveness. Situational
analysis or situational evaluation are other names for it.

4.2 SWOT analogies with reference to the organization

Figure: SWOT analogies with reference to the organization

S - Strength: Internal attributes and resources that support a successful outcome.

• Moulding technology Expertise

• Top Management Keen Focus on TPM

• Young Team

• OE Culture (DET Culture)

21

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

• EO Hand IATF certified

W – Weakness: Inherent qualities and assets that impede a favourable result.

• High level of Rejection

• More setup times

• Low availability rate

• 80% on Manual process

• Non-standard way of working

• High losses

O - Opportunity: External elements that the organization can benefit from or take advantage of.

• Abundance land available

• Technology partner for 2W/ 4W

• Easy reach for south Indian OEM’s

• Manufacturing Excellence thru TPM

T - Thread: External elements that can endanger the entity's performance.

• Saturated annual volume – HMSI

• No product-based technology

• Cost competition from premier

• Customer volume fluctuation

• High risk in alternate RM selection

22

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 CHAPTER-V

ANALYSING OF FINANCIAL STATEMENT

Organizational Study at LUMAX Auto Technology Ltd

5.1 BALANCE SHEET OF LUMAX AUTO TECHNOLOGY LIMITED OF THE

YEAR 2023 2022 and 2021
(All amounts are in Lakhs)
As at As at As at
march
March March
31,2023
Particular note 31,2022 31,2021
Equity and liabilities
I Equity
Equity share capital 17 1,363.15 1,363.15 1,200.15
Other equity 18 47,658.16 47,448.05 41,886.05
Total equity (A) 49,021.31 48,811.20 43,086.20
Liabilities
II Non-current liability
Financial liability
Borrowing lease liability 19 23.36 14.81 13.81
lease liability 20 2,289.47 1,775.30 1,775.30
Deferred tax liabilities(net) 22 1,102.24 1,143.30 1,143.30
Total non-current liability (B) 3,415.07 2,933.41 2,932.41
III Current liability
Financial liability
Borrowing 19 8,020.66 3,502.49 2,502.49
Lease lability 20 445.50 244.69 201.69
Trade payable 24
Total outstanding dues of micro
and small enterprise 2,265.01 1,788.65 1,688.65
Total outstanding dues of
creditors other than micro and
small enterprise 14,290.70 14,393.30 14,093
Other financial liability 25 2,325.35 2,224.98 2,107.95
Employee benefit liability 21 1,581.05 1,369.04 1,368.04

23

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other current liability 23 4,417.84 3,658.89 3,388.55

Current tax liability(net) 8(b) 34.39 188.91 20.4
Total Current Liability (C) 33,380.50 27,370.95 25,370.77
Total Liability (B+C) 36,795.57 30,304.36 28,303.18
Total Equity and Lability (A+B+C) 85,816.88 79,115.56 71,389.38
Assets
I. Non-current assets
Property plant and equipment 3(a) 19,612.00 19,890.52 19,700.14
Capital work in process 3(b) 876.03 514.41 504.41
Intangible assets 4 121.17 168.88 158.88
Right to use assets 5 2,931.15 2,277.03 2,581.03

Investment property 6 1,728.73 1,758.51 1,728.73

Investment in subsidiaries and
joint ventures 7 8,997.30 7,202.94 7,202.94
Income tax assets(net) 8(a) 607.43 618.85 601.85
Financial assets
Investment 9 5,301.46 8,940.14 658.25
Loan 10 291.50 9.41 8.59
Other financial Assets 11 1,075.14 481.69 1,065.69
Other Noncurrent assets 12 1,367.81 731.12 715.21
Total Non-Current Assets (A) 42,909.72 42,593.50 34,925.72
I. Current assets
Inventories 13 5,596.34 4,495.21 4,395.20
Financial assets
Investment 9 6,897.44 4,034.91 4,035.90
Loan 10 494.57 1,166.92 1,155.90
Trade receivable 14 20,132.64 17,954.69 17,900.69
Cash and cash equipment 15 226.47 162.26 159.26
Other bank balance 16 7,857.04 6,268.82 6,439.82
24

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other financial assets 11 196.77 1,252.40 1,200.04

Other current assets 12 1,505.89 1,186.85 1,176.85
Total current assets (B) 42,907.16 36,522.06 36,463.66
Total assets (A+B) 85,816.88 79,115.56 71,389.38

By obtaining both equity and borrowings to meet its capital needs, the company is pursuing a
balanced strategy. The recoverability needs to be improved in order to prevent a short-term cash
shortage. The increase in current investments raises the possibility that the company used its
surplus funds to make current investments.

5.2 PROFIT AND LOSS ACCOUNT OF LUMAX AUTO TECHNOLOGY

LIMITED IN 2023, 2022, 2021

(All amounts are in Lakhs)

For the For the year For the year
Year ending ending ending
Particular Notes march march march
31,2023 31,2022 31,2021

INCOME

Revenue from contract with customer 26 1,15,703.46 90,294.89 89,195.89

Other income 27 2,161.56 2,206.46 2,103.59

Total income(I+II) 1,17,865.02 92,501.32 91,299.48

Expenses

Cost of raw material and components

28 59,767.36 47,547.79 46,457.54
consumed

Cost of mould consumed 29 419.61 134.26 124.19

25

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Purchase of trade goods 28(a) 15,861.99 14,953.99

(increase)/decrease in inventories of
finished goods, work-in-progress and 30 (168.41) (292.75) (159.65)
traded goods

Employee benefit expense 31 11,326.84 9,531.07 8,981.09

Finance costs 32 601.12 715.03 651.53

Depreciation and amortization expenses 33 2,661.61 2,509.14 2,445.18

Other expenses 34 14,050.24 10,867.97 11,781.21

Total expenses 1,09,940.48 86,934.50 85,235.08

Profit before exceptional and tax (IIIIV)

7,924.54 5,566.82 6,064.40

Exception item 35 175.05 - 259.09

Profit before tax (V-VI) 7,749.49 5,566.82 5,805.31

Tax expenses

Current tax 22 1,931.38 1,491.53 1,389.62

Adjustment of tax related to earlier years 22 (28.08) (39.93) (25.01)

Deferred tax 22 (16.43) (93.51) (51.25)

Total tax expenses 1,886.87 1,358.09 1,313.36

Profit for the year (VII-VIII) 5,862.62 4,208.73 4,491.95

The company is doing well because it uses its resources as efficiently as possible while
sustaining a steady increase in revenue from operations. Because of the company's expanding
commercial operations, the cost of labour and materials between 2023 and 2022 climbed by
more than 100%.

26

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

5.3 Common Size Balance Sheet of Lumax Auto Technologies ltd. 2022-23
(All amounts are presented in Lakhs)
As at As at
march
March % Percentage
31,2023
Particular 31,2022
Equity and liabilities

1. Equity

Equity share capital 1,363.15 1.723 1,363.15 3.177

Other equity 47,448.05 59.973 47,658.16 55.535

Total equity 48,811.20 61.696 49,021.31 57.123

Liabilities

2. Non-current liability

Financial liability

Borrowing lease liability 14.81 0.019 23.36 0.027

lease liability 1,775.30 2.244 2,289.47 2.668

Deferred tax liabilities(net) 1,143.30 1.445 1,102.24 1.284

Total non-current liability 2,933.41 3.708 3,415.07 3.979

3. Current liability

Financial liability

Borrowing 3,502.49 4.427 8,020.66 9.346

Lease lability 244.69 0.309 445.50 0.519

Trade payable

Total outstanding dues of micro and

small enterprise 1,788.65 2.261 2,265.01 2.639

Total outstanding dues of creditors

other than micro and small enterprise 14,393.30 18.193 14,290.70 16.653

27

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other financial liability 2,224.98 2.812 2,325.35 2.710

Employee benefit liability 1,369.04 1.730 1,581.05 1.842

Other current liability 3,658.89 4.625 4,417.84 5.148

Current tax liability(net) 188.91 0.239 34.39 0.040

Total Current Liability 27,370.95 34.596 33,380.50 38.897

Total Liability 30,304.36 38.304 36,795.57 42.877

Total Equity and Lability 79,115.56 100 85,816.88 100

Assets

1. Non-current assets

Property plant and equipment 19,890.52 25.141 19,612.00 22.853

Capital work in process 514.41 37.737 876.03 1.021

Intangible assets 168.88 0.213 121.17 0.141

Right to use assets 2,277.03 2.878 2,931.15 3.416

Investment property 1,758.51 2.223 1,728.73 2.014

Investment in subsidiaries and joint

ventures 7,202.94 9.104 8,997.30 10.484

Income tax assets(net) 618.85 0.782 607.43 0.708

Financial assets

Investment 8,940.14 11.300 5,301.46 6.178

Loan 9.41 0.012 291.50 0.340

Other financial Assets 481.69 0.609 1,075.14 1.253

28

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other Noncurrent assets 731.12 0.924 1,367.81 1.594

Total Non-Current Assets 42,593.50 53.837 42,909.72 50.001

1. Current assets

Inventories 4,495.21 5.682 5,596.34 6.521

Financial assets

Investment 4,034.91 5.100 6,897.44 8.037

Loan 1,166.92 1.475 494.57 0.576

Trade receivable 17,954.69 22.694 20,132.64 23.460

Cash and cash equipment 162.26 0.205 226.47 0.264

Other bank balance 6,268.82 7.924 7,857.04 9.156

Other financial assets 1,252.40 1.583 196.77 0.229

Other current assets 1,186.85 1.500 1,505.89 1.755

Total current assets 36,522.06 46.163 42,907.16 49.999

Total assets 79,115.56 100 85,816.88 100

According to the financial statement, as of March 31, 2022, the company had equity share capital and
other equity components totalling 48,811.20. There are two types for the liabilities: non-current and
current. Financial commitments like borrowing and leasing liabilities are included in non-current
liabilities, which come to $2,933.41. The $27,370.95 that make up current liabilities are comprised of
trade payables, leasing commitments, and other debts. Liabilities as a whole are $30,304.36. Let's talk
about assets. Of $42,593.50, property, plant, and equipment, investments, and intangible assets make
up the majority of non-current assets. Inventories, cash, trade receivables, and other liquid assets make
up the $36,522.06 sum of current assets. The entire amount of $79,115.56 that represents equity and

29

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

liabilities also reflects general financial health. Interestingly, the equity of the business as a percentage
of total

5.3.1 Common Size Balance Sheet of Lumax Auto Technologies ltd. 2021-22
(All amounts are presented in Lakhs)
As at As at
March Percentage march
Particular 31,2021 31,2022 Percentage
Equity and liabilities

1. Equity

Equity share capital 1,200.15 1.68 1,363.15 1.72

Other equity 41,886.05 58.67 47,448.05 59.97

Total equity 43,086.20 60.35 48,811.20 61.70

Liabilities

2. Non-current liability

Financial liability

Borrowing lease liability 13.81 0.02 14.81 0.02

lease liability 1,775.30 2.49 1,775.30 2.24

Deferred tax liabilities(net) 1,143.30 1.60 1,143.30 1.45

Total non-current liability 2,932.41 4.11 2,933.41 3.71

3. Current liability

Financial liability

30

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Borrowing 2,502.49 3.51 3,502.49 4.43

Lease lability 201.69 0.28 244.69 0.31

Trade payable 0.00 0.00

Total outstanding dues of micro and

small enterprise
1,688.65 2.37 1,788.65 2.26
Total outstanding dues of creditors
other than micro and small
enterprise
14,093 19.74 14,393.30 18.19
Other financial liability 2,107.95 2.95 2,224.98 2.81

Employee benefit liability 1,368.04 1.92 1,369.04 1.73

Other current liability 3,388.55 4.75 3,658.89 4.62

Current tax liability(net) 20.4 0.03 188.91 0.24

Total Current Liability 25,370.77 35.54 27,370.95 34.60

Total Liability 28,303.18 39.65 30,304.36 38.30

Total Equity and Lability 71,389.38 100 79,115.56 100

Assets

1. Non-current assets

Property plant and equipment 19,700.14 27.60 19,890.52 25.14

Capital work in process 504.41 0.71 514.41 0.65

Intangible assets 158.88 0.22 168.88 0.21

Right to use assets 2,581.03 3.62 2,277.03 2.88

Investment property 1,728.73 2.42 1,758.51 2.22

31

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Investment in subsidiaries and joint

ventures
7,202.94 10.09 7,202.94 9.10
Income tax assets(net) 601.85 0.84 618.85 0.78

Financial assets

Investment 658.25 0.92 8,940.14 11.30

Loan 8.59 0.01 9.41 0.01

Other financial Assets 1,065.69 1.49 481.69 0.61

Other Noncurrent assets 715.21 1.00 731.12 0.92

Total Non-Current Assets 34,925.72 48.92 42,593.50 53.84

1. Current assets

Inventories 4,395.20 6.16 4,495.21 5.68

Financial assets

Investment 4,035.90 5.65 4,034.91 5.10

Loan 1,155.90 1.62 1,166.92 1.47

Trade receivable 17,900.69 25.07 17,954.69 22.69

Cash and cash equipment 159.26 0.22 162.26 0.21

Other bank balance 6,439.82 9.02 6,268.82 7.92

Other financial assets 1,200.04 1.68 1,252.40 1.58

Other current assets 1,176.85 1.65 1,186.85 1.50

Total current assets 36,463.66 51.08 36,522.06 46.16

Total assets 71,389.38 100 79,115.56 100

32

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 Organizational Study at LUMAX Auto Technology Ltd

The company's financial situation has changed significantly, as can be seen by comparing the
financial accounts as of March 31, 2022, and March 31, 2021. From 43,086.20 (60.35%) to
48,811.20 (61.70%), the equity section shows growth, which is attributed to an increase in
equity share capital and other equity components. Nonetheless, the equity change as a
percentage has been quite low. A slight increase in non-current liabilities was observed on the
liability side, going from 2,932.41 (4.11%) to 2,933.41 (3.71%), mostly as a result of
modifications in borrowing and leasing obligations. Conversely, due to increased borrowing
and trade payables, current liabilities increased from 25,370.77 (35.54%) to 27,370.95
(34.60%). The entire amount of obligations grew to 30,304.36 (38.30%) from 28,303.18
(39.65%). When it comes to assets, non-current assets have increased significantly, rising from
$34,925.72 (48.92%) to $42,593.50 (53.84%), which may be attributed to growth in financial
investments as well as property, plant, and equipment. The current assets increased little from
36,463.66 (51.08%) to 36,522.06 (46.16%). The company's expansion throughout the fiscal
year was reflected in the entire balance sheet size, which increased from $71,389.38 to
79,115.56.

5.4 Comparative P/L statement of Lumax Auto Technologies ltd. 2023-2022

(All amounts are presented in Lakhs)
For the year
ending
For the year march
ending march 31,2023 Increase
Particular 31,2022 /decrease Percentage

Income

Revenue from contract with customer

90,294.89 1,15,703.46 25,408.57 21.96

Other income 2,206.46 2,161.56 -44.90 -2.08

Total income(I+II) 92,501.32 1,17,865.02 25,363.70 21.52

33

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Expenses

Cost of raw material and components

consumed 47,547.79 59,767.36 12,219.57 20.45

Cost of mould consumed 134.26 419.61 285.35 68.00

Purchase of trade goods 15,861.99 -15,861.99

(increase)/decrease in inventories of
finished goods, work-in-progress and
traded goods (292.75) (168.41) 124.34 -73.83

Employee benefit expense 9,531.07 11,326.84 1,795.77 15.85

Finance costs 715.03 601.12 -113.91 -18.95

Depreciation and amortization

expenses 2,509.14 2,661.61 152.47 5.73

Other expenses 10,867.97 14,050.24 3,182.27 22.65

Total expenses 86,934.50 1,09,940.48 23,005.98 20.93

Profit before exceptional and

tax(III-IV) 5,566.82 7,924.54 2,357.72 29.75

Exception item 175.05 175.05 100.00

Profit before tax (V-VI) 5,566.82 7,749.49 2,182.67 28.17

Tax expenses

Current tax 1,491.53 1,9631.38 18,139.85 92.40

Adjustment of tax related to earlier

years (39.93) (28.08) 11.85 -42.20

Deferred tax (93.51) (16.43) 77.08 -469.14

34

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Total tax expenses 1,358.09 1,886.87 528.78 28.02

Profit for the year (VII-VIII) 4,208.73 5,862.62 1,653.89 28.21

Other comprehensive income

(loss)(net of tax )
Other comprehensive
income/(loss) not to be reclassified
to statement of profit or loss in
subsequent period

Re-measurement gain (loss) on

defined benefit plans (72.60) 6.27 78.87 1257.89

Income tax effect 8.60 (1.58) -10.18 644.30

(loss)/ gain on FVTOCI equity

securities 3,925.98 (3,638.68) -7,564.66 207.90

Income tax effect (7.66) 26.21 33.87 129.23

Other comprehensive income

/(loss) for the year, net of tax 3,854.32 (3,607.78) -7,462.10 206.83

Total comprehensive income for the

year (comprising net profit for the
8,063.05
year and other comprehensive
income/(loss)) (IX+X) 2,254.84 -5,808.21 -257.59

Earnings per share (per share of

face value ₹ 2 each):

Earnings per share

Basic and duplicated (in₹) 6.17 8.60 2.43 28.26

The financial figures show a significant shift in the company's performance for the years ending
March 31, 2022, and March 31, 2023. From ₹92,501.32 to ₹1,17,865.02, the total income increased

35

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

by a staggering ₹25,363.70, or 21.52%. The main driver of this gain was a strong 21.96% increase in
revenue from customer contracts; other income decreased by a small amount, by -2.08%. The cost of
the components and raw materials used increased by ₹12,219.57 (20.45%) on the spending side,
bringing the total costs up from ₹86,934.50 to ₹1,09,940.48. Even though there were increases in a
number of expense categories, the profit before extraordinary items and tax showed a noteworthy
growth of ₹2,357.72, or 29.75%, to ₹7,924.54. The profit before tax improved by 28.17% to ₹7,749.49
despite the company recording an unusual item of ₹175.05. There was a significant increase in tax
expenses of ₹528.78 (28.02%). As a result, the profit for the year increased significantly to ₹5,862.62
(28.21%) from ₹1,653.89 (28.21%). On the other hand, the year's comprehensive income, which
includes net profit and other comprehensive income/(loss), saw a significant decline of -257.59%,
from ₹8,063.05 to ₹2,254.84. The earnings per share experienced a 28.26% increase of ₹2.43, coming
in at ₹8.60. Together, these financial metrics show the company's dynamic shifts and difficulties over
this fiscal year.

5.4.1 Comparative P/L statement of Lumax Auto Technologies ltd in the year 2022-
2021
(All amounts are presented in Lakhs)
For the year For the Year
ending ending march
march 31,2022 Increase
Particular 31,2021 /decrease Percentage

Income
Revenue from contract with customer 89,195.89 90,294.89 1,099.00 1.232

Other income 2,103.59 2,206.46 102.87 4.890

Total income(I+II) 91,299.48 92,501.32 1,201.84 1.316

Expenses

Cost of raw material and components

consumed 46,457.54 47,547.79 1,090.25 2.347
Cost of mould consumed 124.19 134.26 10.07 8.109

36

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Purchase of trade goods 14,953.99 15,861.99 908.00 6.072

(increase)/decrease in inventories of
finished goods, work-in-progress and
traded goods (159.65) (292.75) -133.10 83.370

Employee benefit expense 8,981.09 9,531.07 549.98 6.124

Finance costs 651.53 715.03 63.50 9.746

Depreciation and amortization

expenses 2,445.18 2,509.14 63.96 2.616
Other expenses 11,781.21 10,867.97 -913.24 -7.752

Total expenses 85,235.08 86,934.50 1,699.42 1.994

Profit before exceptional and tax(III-
IV) 6,064.40 5,566.82 -497.58 -8.205

Exception item 259.09 - -259.09 -100.000

Profit before tax (V-VI) 5,805.31 5,566.82 -238.49 -4.108

Tax expenses 0.00

Current tax 1,389.62 1,491.53 101.91 7.334

Adjustment of tax related to earlier

years (25.01) (39.93) -14.92 59.656

Deferred tax (51.25) (93.51) -42.26 82.459

Total tax expenses 1,313.36 1,358.09 44.73 3.406

Profit for the year (VII-VIII) 4,491.95 4,208.73 -283.22 -6.305

Other comprehensive income
(loss)(net of tax ) 89,195.89 90,294.89 1,099.00 1.232
Other comprehensive income/(loss)
not to be reclassified to statement of
profit or loss in subsequent period 2,103.59 2,206.46 102.87 4.890
Re-measurement gain (loss) on
defined benefit plans 91,299.48 92,501.32 1,201.84 1.316

37

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

The company's financial performance underwent significant changes in the fiscal year that ended on
March 31, 2021, and the following year that ended on March 31, 2022. The overall income increased
by a relatively small 1.316%, primarily due to a slight increase in revenue from client contracts and a
larger 4.890% growth in other income. The business did, however, experience financial difficulties
because the price of components and raw materials, the cost of replacing a mould, and the acquisition
of trade products all increased. A notable variation in inventory led to an 83.370% shift, which in turn
contributed to the 1.994% increase in total costs. The company saw a drop in profit before unusual
items and tax of -8.205% despite strong efforts, which was impacted by an exceptional item of
100.000%. The 3.406% increase in tax expenses was a result of higher current and deferred taxes. There
was a 1.232% increase in the comprehensive income, which included re-measurement gains on defined
benefit plans. To sum up, the company had difficulties with cost control, witnessed a reduction in
profitability as a result of unusual items, and handled variations in total revenue components. For
longterm financial stability, strategic cost-control methods and cautious handling of extraordinary items
will be crucial.

5.5 Comparative Balance Sheet of Lumax Auto Technologies ltd in the year

2022-2023 (All amounts are d in Lakhs)

Particular As at As at Increase/ Percentage
decrease
March march

31,2022 31,2023

Equity and liabilities

Equity

Equity share capital 1,363.15 1,363.15 0.00 0.00

38

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other equity 47,448.05 47,658.16 210.11 0.44

Total equity 48,811.20 49,021.31 210.11 0.43

Liabilities

Non-current liability

Financial liability

Borrowing lease liability 14.81 23.36 8.55 36.60

lease liability 1,775.30 2,289.47 514.17 22.46

Deferred tax liabilities(net) 1,143.30 1,102.24 -41.06 -3.73

Total non-current liability 2,933.41 3,415.07 481.66 14.10

Current liability

Financial liability

Borrowing 3,502.49 8,020.66 4,518.17 56.33

Lease lability 244.69 445.50 200.81 45.08

Trade payable

Total outstanding dues of micro a 1,788.65 2,265.01 476.36 21.03

small enterprise

Total outstanding dues of credito 14,393.30 14,290.70 -102.60 -0.72

other than micro and small enter
p

39

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other financial liability 2,224.98 2,325.35 100.37 4.32

Employee benefit liability 1,369.04 1,581.05 212.01 13.41

Other current liability 3,658.89 4,417.84 758.95 17.18

Current tax liability(net) 188.91 34.39 -154.52 -449.32

Total Current Liability 27,370.95 33,380.50 6,009.55 18.00

Total Liability 30,304.36 36,795.57 6,491.21 17.64

Total Equity and Lability 79,115.56 85,816.88 6,701.32 7.81

Assets

Non-current assets

Property plant and equipment 19,890.52 19,612.00 -278.52 -1.42

Capital work in process 514.41 876.03 361.62 41.28

Intangible assets 168.88 121.17 -47.71 -39.37

Right to use assets 2,277.03 2,931.15 654.12 22.32

Investment property 1,758.51 1,728.73 -29.78 -1.72

Investment in subsidiaries and i 7,202.94 8,997.30 1,794.36 19.94

jo ventures

Income tax assets(net) 618.85 607.43 -11.42 -1.88

40

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Financial assets

Investment 8,940.14 5,301.46 -3,638.68 -68.64

Loan 9.41 291.50 282.09 96.77

Other financial Assets 481.69 1,075.14 593.45 55.20

Other Noncurrent assets 731.12 1,367.81 636.69 46.55

Total Non-Current Assets 42,593.50 42,909.72 316.22 0.74

Current assets

Inventories 4,495.21 5,596.34 1,101.13 19.68

Financial assets

Investment 6,897.44 2,862.53 41.50

4,034.91
Loan 494.57 -672.35 -135.95
1,166.92
20,132.64 2,177.95 10.82
Trade receivable
17,954.69
162.26 226.47 64.21 28.35
Cash and cash equipment

6,268.82 7,857.04 1,588.22 20.21

Other bank balance

Other financial assets 1,252.40 196.77 -1,055.63 -536.48

Other current assets 1,186.85 1,505.89 319.04 21.19

Total current assets 36,522.06 42,907.16 6,385.10 14.88

Total assets 79,115.56 85,816.88 6,701.32 7.81

41

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

When comparing the company's financial status as of March 31, 2023, to March 31, 2022, there are a
number of noteworthy changes. Due to a little increase in other equity, the total equity saw a slight
gain of 0.43%, hitting ₹49,021.31. The main causes of the 14.10% growth in non-current liabilities
were the significant increases in leasing and borrowing lease liabilities. Deferred tax liabilities (net)
on the other hand, fell by -3.73%. The increase in borrowing, trade payables, employee benefit
liability, and other current liabilities was the main cause of the 18.00% increase in current liabilities.
Notably, the current tax bill (net) was significantly reduced by -449.32%. As a result, the total
liabilities rose to ₹36,795.57, a 17.64% rise.
The overall assets of the company increased by 7.81% to ₹85,816.88. The main contributors to this
increase were the company's current assets, which included loans, investments, and trade receivables.
However, there were slight declines in non-current assets, namely in property, plant, and equipment,
intangible assets, and investments in subsidiaries. All things considered, these shifts in equity,
liabilities, and assets point to a dynamic financial environment that strikes a balance between short-
and long-term financial commitments as well as wise investments across a range of asset classes.

5.5.1 Comparative Balance Sheet of Lumax Auto Technologies ltd in the year 2021-

2022

(All amounts are presented in Lakhs)

As at As at
March march
Increase/
Particular 31,2021 31,2022 decrease Percentage

Equity and liabilities

1. Equity

Equity share capital 1,200.15 1,363.15 163.00 13.582

42

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other equity 41,886.05 47,448.05 5,562.00 13.279

Total equity 43,086.20 48,811.20 5,725.00 13.287

Liabilities

2. Non-current liability

Financial liability

Borrowing lease liability 13.81 14.81 1.00 7.241

0.00 0.000
lease liability 1,775.30 1,775.30

0.00
Deferred tax liabilities(net) 1,143.30 1,143.30 0.000

Total non-current liability 2,932.41 2,933.41 1.00 0.034

3. Current liability

Financial liability

Borrowing 2,502.49 3,502.49 1,000.00 39.960

Lease lability 201.69 244.69 43.00 21.320

Trade payable

Total outstanding dues of micro

and small enterprise 1,688.65 1,788.65 100.00 5.922

Total outstanding dues of creditors

other than micro and small 300.30
enterprise 14,093 14,393.30 2.131

Other financial liability 2,107.95 2,224.98 117.03 5.552

Employee benefit liability 1,368.04 1,369.04 1.00 0.073

43

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Other current liability 3,388.55 3,658.89 270.34 7.978

20.4
Current tax liability(net) 188.91 168.51 826.029

Total Current Liability 25,370.77 27,370.95 2,000.18 7.884

Total Liability 28,303.18 30,304.36 2,001.18 7.071

Total Equity and Lability 71,389.38 79,115.56 7,726.18 10.823

Assets

1. Non-current assets

Property plant and equipment 19,700.14 19,890.52 190.38 0.966

Capital work in process 504.41 514.41 10.00 1.983

Intangible assets 158.88 168.88 10.00 6.294

Right to use assets 2,581.03 2,277.03 -304.00 -11.778

1,728.73 29.78 1.723

Investment property 1,758.51

Investment in subsidiaries and

joint ventures 7,202.94 7,202.94 0.00 0.000

Income tax assets(net) 601.85 618.85 17.00 2.825

Financial assets

Investment 658.25 8,940.14 8,281.89 1258.168

Loan 8.59 9.41 0.82 9.546

1,065.69 481.69 -54.800

Other financial Assets -584.00

Other Noncurrent assets 715.21 731.12 15.91 2.225

44

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

21.955
Total Non-Current Assets 34,925.72 42,593.50 7,667.78

2. Current assets

Inventories 4,395.20 100.01 2.275

4,495.21

Financial assets

Investment 4,035.90 4,034.91 -0.99 -0.025

Loan 1,155.90 1,166.92 11.02 0.953

17,900.69 54.00 0.302

Trade receivable 17,954.69

Cash and cash equipment 159.26 162.26 3.00 1.884

Other bank balance 6,439.82 6,268.82 -171.00 -2.655

Other financial assets 1,200.04 1,252.40 52.36 4.363

Other current assets 1,176.85 1,186.85 10.00 0.850

58.40 0.160
Total current assets 36,463.66 36,522.06

Total assets 71,389.38 10.823

79,115.56 7,726.18

Comparing the financial snapshot of March 31, 2022 to March 31, 2021 reveals significant
shifts in the equity, liabilities, and assets of the business. The overall equity saw a noteworthy
gain of 13.29%, amounting to ₹48,811.20, mostly due to increases in equity share capital and
other equity. There was a little increase of 0.03% in non-current liabilities, a slight increase in
borrowing lease liability, and a slight decrease in deferred tax liabilities (net). The increase in
borrowing, lease liability, and other current liabilities was the main cause of the 7.88% increase
in current liabilities. Notably, there was a significant increase in current tax liability (net). As a
result, the total liabilities rose to ₹30,304.36, an increase of 7.07%. The company's total assets
increased by 10.82% to ₹79,115.56. Non-current assets, including investments and property,
plant, and equipment, made up a sizable portion of this expansion. The right to use assets and

45

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

other financial assets saw some little declines, but overall, the financial picture shows a
carefully managed equilibrium between equity and liabilities, which has been the company's
development engine.

5.6 Ratio Analysis

Table No. 5.1
Year Current assets Current liabilities Current ratio

2020-21 36,463.66 25,370.77 1.44

2021-22 36,522.06 27,370.95 1.33

2022-23 42,907.16 33,380.50 1.28

Graph No 5.1

The company's current assets, which are assets that are anticipated to be turned into cash within
a year, increased gradually over the course of the three years between 2020–21 and 2022–23,
reaching ₹42,907.16 in 2022–23. Simultaneously, current liabilities that is, debts that are due
within a year—have also increased; as of last year, they totalled ₹33,380.50. By dividing current
assets by current liabilities, one may find the current ratio, which was 1.44 in 2020–21, 1.33 in
46

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

2021–22, and 1.28 in 2022–23. All three years show that, despite the declining trend, the
corporation has a favourable liquidity position with more short-term assets than liabilities. The
declining current ratio calls for a closer assessment of the company's liquidity and raises the
possibility of the need for cautious short-term obligation management.

5.6.2 QUICK RATIO

The quick ratio evaluates a company's capacity to satisfy its short-term commitments with its
most liquid assets and serves as a gauge of its short-term liquidity position.

A7's value of 1 is regarded as the typical fast ratio. It shows that the business is well-equipped
and has just the right amount of assets to cover its existing liabilities right away. In the short
run, a business with a quick ratio of less than one might not be able to pay off all of its current
liabilities; on the other hand, a business with a fast ratio greater than one might pay off its current
liabilities right away.

𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

Table No 5.2
CURRENT
YEAR CA–INVESTMENT QUICK RATIO
LIABILITIES

2020-21 32,068.46 25,370.77 1.26

2021-22 32,026.85 27,370.95 1.17

2022-23 36,500.82 33,380.50 1.09

47

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Graph No 5.2

QUICK RATIO

A crucial financial indicator called the quick ratio, sometimes referred to as the acid-test ratio,
evaluates a company's capacity to pay short-term obligations with its most liquid assets,
excluding inventory. During the fiscal year 2022–2023 the company demonstrated a quick ratio
of 1.09, meaning that it had 1.09 units of highly liquid assets accessible, such as investments,
for every unit of current debt. The quick ratio has decreased from the year before (2021–2022),
when it was 1.17, and from the year before (2020–2021), when it was 1.26. A fast ratio of more
than one indicates that a business has enough liquid assets to meet its immediate liabilities; a
larger ratio is typically regarded as advantageous. The fast ratio's declining tendency over time
may cause one to question the company's capacity to pay short-term obligations without turning
to the sale of inventories. It might be affected by modifications to working capital management
techniques, adjustments to investment plans, or adjustments to the overall financial structure.
Even while the quick ratio offers insightful information on short-term liquidity, a thorough
understanding of the company's financial health requires interpreting it in conjunction with
other financial measurements and industry benchmarks. If the observed changes are within an

48

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

acceptable range and consistent with the company's overall financial strategy, a detailed
investigation will be helpful in ascertaining this.

5.6.3 ABSOLUTE LIQUID RATIO

The Cash Assets Ratio, sometimes called the Absolute Liquidity Ratio or the Absolute Liquid
Ratio, is a financial ratio that evaluates a company's capacity to pay short-term debt with its
most liquid assets. The Absolute Liquid Ratio formula is

𝑐𝑎𝑠ℎ 𝑎𝑛𝑑 𝑐𝑎𝑠ℎ 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡 + 𝑀𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑆𝑒𝑐𝑢𝑟𝑖𝑡𝑦

𝐴𝑏𝑠𝑜𝑙𝑢𝑡𝑒 𝑙𝑖𝑞𝑢𝑖𝑑𝑟𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

Table No 5.3
CURRENT
Cash and cash equivalent + LIABILITIES
YEAR marketable security Cash ratio

2020-21 159.26 25,370.77 0.006

2021-22 162.26 27,370.95 0.006

2022-23 226.47 33,380.50 0.007

49

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

The company's cash and cash equivalents increased consistently over the three years from
2020–21 to 2022–23, with the most recent year seeing ₹226.47. This indicates that liquidity is
trending positively. Concurrently, there has been an increase in current liabilities, which
suggests more short-term debt. In 2020–21 and 2021–22, the cash ratio—which shows how
much cash is available to pay for current liabilities—stayed constant at 0.006 percent.
Nonetheless, there was a minor improvement to 0.007 in 2022–2023, indicating a marginal
improvement in the business's capacity to pay short-term debt with cash on hand. Overall, even
if the company's liquidity has improved, it still needs to adequately manage its increasing short
term liabilities.

50

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

5.6.4 Proprietary ratio

This debt-to-equity ratio is variable. It calculates the ratio of total assets to shareholder funds. Its
equation is This debt-to-equity ratio is variable. It calculates the ratio of total assets to shareholder
funds. It uses this formula:

𝑆ℎ𝑎𝑟𝑒 ℎ𝑜𝑙𝑑𝑒𝑟𝑠 𝑓𝑜𝑢𝑛𝑑

𝑃𝑟𝑜𝑝𝑒𝑟𝑖𝑒𝑡𝑎𝑟𝑦 𝑟𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

Table No 5.4
YEAR Share holder fund Total Assets Proprietary ratio

2020-21 43,086.20 71.389.38 0.60

2021-22 48,811.20 79,115.56 0.62

2022-23 49,021.31 85,816.88 0.57

51

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Graph No 5.4
Properietary Ratio

0.62

0.63 0.6

0.62 0.61

0.57

0.6
0.59
0.58
0.57
0.56

0.55

0.54
021 2022 2023

Years

The company's shareholder fund increased from ₹43,086.20 to ₹49,021.31 throughout the
threeyear period between 2020–21 and 2022–23, exhibiting a constant upward trend. This
illustrates the growing potential and optimistic attitude of investors. Additionally, total assets
have continued to rise, hitting ₹85,816.88 in 2022–2023, which suggests that the company's
operations have expanded and that investments have also increased. Measuring the percentage
of total assets to shareholder funds, the proprietary ratio was 0.60 in 2020–21, increased to 0.62
in 2021–22, and then marginally fell to 0.57 in 2022–23. The proprietary ratio, which is

52

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

influenced by shareholders to a considerable extent, indicates a comparatively steady financial

structure notwithstanding the fluctuations.

5.6.5 Cash Ratio

Cash ratio is less than 1 it means cash in the system is insufficient to pay for short term

liabilities.

A creditor of the company will assume more risk while extending credit to the company.

cash and cash equivalent

𝐶𝑎𝑠ℎ 𝑟𝑎𝑡𝑖𝑜 =
current liabilities

Table No 5.5
Cash and cash CURRENT
equivalent LIABILITIES
YEAR Cash ratio

2020-21 159.26 25,370.77 0.006

2021-22 162.26 27,370.95 0.006

2022-23 226.47 33,380.50 0.007

53

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

Graph No 5.5

A liquidity statistic called the cash ratio evaluates a company's capacity to pay short-term
obligations with its cash and cash equivalents. The company's cash ratio for the fiscal year
2022–2023 was 0.007, meaning that for every unit of current liability, it had 0.007 units of cash
and cash equivalents on hand. The cash ratio for this year has increased marginally from the
previous year (2021–2022), when it was 0.006, and it is still the same as the 0.006 reported for
the year 2020–21. The corporation may be able to satisfy some of its short-term obligations
with its available cash and cash equivalents alone if its cash ratio is higher than zero. A low
cash ratio, however, can indicate that the business depends more on other sources of liquidity
to pay its current liabilities.

Although the cash ratio sheds light on a company's current liquidity situation, it is important to
consider the company's overall financial health as well as industry benchmarks when
interpreting the results. Although a larger cash ratio is usually regarded as advantageous,
unnecessarily high cash levels could be a sign of unused resources that could be invested in to
yield higher profits. In order to create a thorough evaluation of the company's financial health
and risk management procedures, a thorough examination of numerous liquidity measurements
and financial indicators is advised.

54

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

 CHAPTER-VI
LEARNING EXPERIENCE
Organizational Study at LUMAX Auto Technology Ltd

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

LEARNING EXPERIENCE

Learning is the process through which we try to apply new information to our actions so that they
reflect that knowledge. Organizational learning is a continuous process that strengthens a group's
ability to adapt to both internal and external change.
The purpose of this internship was to give students the knowledge and skills they needed for careers
in. The intern also hoped to promote the organization's activities while also giving the public timely
responses. With the responses from the many directorates and departments of the organization, the
student is able to develop practical skills. With a focus on HR training and development in Lumax
Auto Technologies Ltd, the corporate sector, non-governmental organizations, self-employment,
and other areas, this aids us in learning about the practical aspects of an organization's operation
on domestic and international markets.
Organizational studies' primary objective is to give managers, researchers, and students a

comprehensive grasp of the actions, cultures, psyches, theories, and lessons of organizations.

Here, I was able to,

1. I was able to learn the Recruitment and Selection process in the company.

• Firstly, we do a medical check-up, to know whether the candidate is fit to do the job.

• Written test will be conducted.

• At last personal interview will be conducted and, on the job, training will be given for

one week.

• Later performance of the candidate will be evaluated.

Do’s and Don’ts Do’s:

• Switch off the lights, fan and A/C’s whenever not required (Lunch break, shift end time).
55

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

• Ensure speed limits for Vehicles is less than 15kmph.

• Follow the Emergency evacuation procedure in case of emergency.

Don’ts:

• Don’t Use cell-phones while carrying out the work.

• Don’t work without personnel protective equipment.

• Don’t rest your leg on the wall

• Don’t write on wall

Internal audit

• I had maintained records of the candidates and performance evaluation.

• 4Mchanges (Man, Material, Money and machine).

• Based on the candidate’s performance, I change them to different levels in the organisation.

• Maintaining 5S changes (Sort, set in order, Shine, Standardise and Sustain).

I now understood how the HR teams works and how interviews are conducted. The
environment of the company was good for my exposure, I felt very happy to do my internship
in this company. I was guided my HR Aparna, and learnt how to have an interaction with
candidates and analysis their behaviour.

56

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE

Organizational Study at LUMAX Auto Technology Ltd

CHAPTER-VII

BIBLIOGRAPHY

Website – https://www.lumaxworld.in/lumaxautotech/index.html https://www.lumaxworld.in/

https://www.lumaxworld.in/overview.html

https://www.lumaxworld.in/lumaxautotech/downloads/LATL-investor-presentation-feb-

2018.pdf

57

Department Of MBA, SEA College Of Engineering And Technology, BANGALORE