1. Industrial Training at Avon Cycles Limited Under Guidance Of: Dr. P. P. Singh Presented By: Neha Jain 94972238289

2. About Avon Cycles Limited

3. Company Profile Business Type Exporter/ Importer/ Manufacturer Year of Establishment 1951 Year of Commencement 1952 Company Branches Ludhiana, Chandigarh Managing Director Sh. Onkar Singh Pahwa Export Turnover About Rs. 100Crores (20% of turnover) Annual Turnover Rs. 500Crores Capacity to Produce 5000 Cycles per day Bankers Punjab National Bank, State Bank of India, CITI Bank, HDFC Bank Limited, HSBC Bank

4. Vision : Quality at Affordable Price with Technological Innovation and Investment in Human Capital

7. Global Presence

10. Quality Certificates

12. Ratio Analysis

13. Current Ratio = Current Assets Current Liabilities Table 2.1 Particulars 2006-07 2007-08 2008-09 Current Assets 1,641,865,983 1,560,706,676 1,523,525,703 Current Liabilities 622,475,713 840,357,896 689,656,719 Current Ratio 2.64 1.86 2.21

14. Quick Ratio = Quick Assets Current Liabilities Table 2.2 Particulars 2006-07 2007-08 2008-09 Quick Assets 1,375,241,698 1,304,802,873 1,282,268,128 Current Liabilities 622,475,713 840,357,896 689,656,719 Quick Ratio 2.21 1.55 1.86

15. Absolute Liquid = Absolute Liquid Assets Ratio Current Liabilities Table 2.3 Particulars 2006-07 2007-08 2008-09 Absolute Liquid Assets 34,166,920 64,610,902 174,724,242 Current Liabilities 622,475,713 840,357,896 689,656,719 Absolute Liquid Ratio 0.05 0.08 0.25

16. Stock Turnover = Cost of Goods Sold Ratio Average Inventory Table 2.4 Particulars 2006-07 2007-08 2008-09 COGS 436,142,374 388,281,130 496,041,031 Average Inventory 117,122,075 840,357,896 689,656,719 Stock Turnover Ratio (in times) 3.72 2.63 2.99 Stock Conversion Period (in months) 3.22 4.56 4.01

17. Debtor Turnover = Net Credit Annual Sales Ratio Average Trade Debtors Table 2.5 Particulars 2006-07 2007-08 2008-09 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Average Debtors 669,317,554.50 773,047,057 740,883,286 Debtor Turnover Ratio (in times) 4.34 4.16 5.6 Average Collection Period (in months) 2.77 2.88 2.14

18. Creditor Turnover = Net Credit Annual Purchases Ratio Average Trade Creditors Table 2.6 Particulars 2006-07 2007-08 2008-09 Purchases 176,514,210 175,500,672 200,779,763 Average Creditors 343,282,406.50 501,238,233.50 521,249,794 Creditor Turnover Ratio (in times) 0.51 0.35 0.39 Creditor Payment Period (in months) 23.36 34.29 31.17

19. Working capital = Sales Turnover Ratio Average working Capital Table 2.7 Particulars 2006-07 2007-08 2008-09 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Average Working Capital 946,899,716.50 875,696,095 782,935,452 Working Capital Turnover Ratio 3.07 3.67 5.3

20. Fixed Asset = Sales Turnover Ratio Net Fixed Assets Table 2.8 Particulars 2006-07 2007-08 2008-09 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Net Fixed Assets 194,536,779 384,994,329 659,488,577 Fixed Asset Turnover Ratio 3.07 8.36 6.3

21. Capital Turnover = Sales Ratio Capital Employed Table 2.9 Particulars 2006-07 2007-08 2008-09 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Capital Employed 1,377,180,059 1,466,797,789 1,782,358,488 Capital Turnover Ratio 2.11 2.19 2.33

22. Debt Equity = Outsiders Funds Ratio Shareholders’ Funds Table 2.10 Particulars 2006-07 2007-08 2008-09 Outsiders Funds 365,237,755 313,195,516 395,117,338 Shareholders’ Funds 1,007,312,157 1,105,875,990 1,285,326,819 Absolute liquid Ratio 0.36 0.28 0.31

23. Ratio of Fixed Asset = Fixed Asset to Funded Debt Funded Debt Table 2.11 Particulars 2006-07 2007-08 2008-09 Fixed Funds 194,536,779 384,994,329 659,488,577 Funded Debt 118,133,466 118,133,466 195,197,664 Ratio of Fixed Asset to Funded Debt 1.65 3.26 3.38

24. Financial = Earnings before Interest and Tax (EBIT) Leverage EBIT – (Interest and Preference Dividend) Table 2.12 Particulars 2006-07 2007-08 2008-09 EBIT 210,649,142 269,878,682 397,872,707 Interest 18,823,416 34,963,006 46,585,380 Preference Dividend 0 0 0 Financial Leverage 1.1 1.15 1.13

25. Ratio of Reserves to = Reserves Equity Capital Equity Share Capital Table 2.13 Particulars 2006-07 2007-08 2008-09 Reserves 998,347,737 1,096,911,570 1,276,362,399 Equity Share Capital 8,964,420 8,964,420 8,964,420 Ratio of Reserves to Equity Share Capital 111.37 122.36 142.38

26. Gross Profit = Gross Profit * 100 Net Sales Table 2.14 Particulars 2006-07 2007-08 2008-09 Gross Profit 2,466,945,599 2,829,285,663 3,656,043,876 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Gross Profit Ratio (%) 84.98 87.93 88.05

27. Net Profit = Net Profit after Tax * 100 Ratio Net Sales Table 2.15 Particulars 2006-07 2007-08 2008-09 Net Profit 134,707,316 156,328,540 217,464,279 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Net Profit Ratio (%) 4.64 4.86 5.24

28. Operating = Operating Cost * 100 Ratio Net Sales Table 2.15 Particulars 2006-07 2007-08 2008-09 Operating Cost 893,571,550 873,321,953 1,156,759,584 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Operating Ratio (%) 30.78 27.14 27.86

29. Operating Profit = Operating Profit * 100 Ratio Net Sales Table 2.17 Particulars 2006-07 2007-08 2008-09 Operating Profit 2,009,516,423 2,344,244,840 2,995,325,323 Sales 2,903,087,973 3,217,566,793 4,152,084,907 Gross Profit Ratio (%) 69.22 72.86 72.14

30. Return on Shareholders’ = Net Profit (after interest & tax) * 100 Investment Shareholders’ Funds Table 2.18 Particulars 2006-07 2007-08 2008-09 Net Profit 134,707,316 156,328,540 217,464,279 Shareholders’ Funds 1,007,312,157 1,105,875,990 1,285,326,819 Return on Shareholders’ Investment (%) 13.37 14.14 16.92

31. E.P.S. = Net Profit after Tax – Preference Dividend Number of Equity Shares Table 2.19 Particulars 2006-07 2007-08 2008-09 Net Profit after Tax 134,707,316 156,328,540 217,464,279 Preference Dividend 0 0 0 Number of Equity Shares 896,442 896,442 896,442 E.P.S. 150.27 174.39 242.59

32. Trend Analysis

33. Trend of Sales Figure 2.1

34. Trend of Net Profit Figure 2.2

35. Trend of Earning Per Share (E.P.S.) Figure 2.3

36. TITLE: Hurdles faced by Exporters of Ludhiana under Bicycle Industry

40. Research Methodology

41. Research Design Descriptive Research Design. Data Collection Primary Data – through questionnaires comprising 16 questions. Population Exporters of bicycle/ bicycle parts in Ludhiana.

42. Sampling Frame Exporters of bicycle/ bicycle parts in Ludhiana. Sampling Unit Any individual organization which is exporting bicycle/ bicycle parts in Ludhiana. Sample Size 30 Sampling Technique Convenience Sampling

43. Data Analysis & Interpretation

44. Number of years from which the company is into exports of bicycle/ bicycle parts. N = 30 Figure 4.1

45. N = 30 Figure 4.2 Continents to which the company exports their bicycle/ bicycle parts.

46. Continent to which the export is maximum. N = 30 Figure 4.3

47. Any problem in the execution of exports is faced or not. N = 30 Figure 4.4

48. N = 30 Exchange rate fluctuations effect the cash flow cycle. 1 2 3 4 4.2 5 Figure 4.5 Table 4.4 Rating Number of Responses Strongly disagree 1 Moderately disagree 0 Neither agree nor disagree 3 Moderately agree 14 Strongly agree 12 Mean 4.2

49. CENVAT is refunded by government on time. N = 30 Table 4.5 1 2 2.27 3 4 5 Figure 4.6 Rating Number of Responses Strongly disagree 3 Moderately disagree 16 Neither agree nor disagree 11 Moderately agree 0 Strongly agree 0 Mean 2.27

50. Documents are cleared by government on time. N = 30 Table 4.6 1 2 2.83 3 4 5 Figure 4.7 Rating Number of Responses Strongly disagree 3 Moderately disagree 7 Neither agree nor disagree 12 Moderately agree 8 Strongly agree 0 Mean 2.83

51. Availability of port is optimum. N = 30 Table 4.7 1 2 2.57 3 4 5 Figure 4.8 Rating Number of Responses Strongly disagree 5 Moderately disagree 12 Neither agree nor disagree 5 Moderately agree 7 Strongly agree 1 Mean 2.57

52. Non-availability of main port in Ludhiana leads to problems for the organization. N = 30 Table 4.8 1 2 3 3.93 4 5 Figure 4.9 Rating Number of Responses Strongly disagree 0 Moderately disagree 0 Neither agree nor disagree 9 Moderately agree 14 Strongly agree 7 Mean 3.93

53. Indian Cycle Industry needs technological advancement. N = 30 Table 4.9 1 2 3 3.87 4 5 Figure 4.10 Rating Number of Responses Strongly disagree 3 Moderately disagree 2 Neither agree nor disagree 2 Moderately agree 12 Strongly agree 11 Mean 3.87

54. India Trade Promotion Organization is working satisfactorily. N = 30 Table 4.10 1 2 3 4 5 Figure 4.11 Rating Number of Responses Strongly disagree 4 Moderately disagree 2 Neither agree nor disagree 16 Moderately agree 6 Strongly agree 2 Mean 3

55. Government support provided to Cycle Industry is optimum. N = 30 Table 4.11 Figure 4.12 1 2 2.23 3 4 5 Rating Number of Responses Strongly disagree 10 Moderately disagree 7 Neither agree nor disagree 9 Moderately agree 4 Strongly agree 0 Mean 2.23

56. Labor required is easily available in sufficient number. N = 30 Table 4.12 1 2 3 4 5 Figure 4.13 Rating Number of Responses Strongly disagree 10 Moderately disagree 14 Neither agree nor disagree 3 Moderately agree 2 Strongly agree 1 Mean 2

57. Language is a barrier in international trade. N = 30 Table 4.13 1 2 2.6 3 4 5 Figure 4.14 Rating Number of Responses Strongly disagree 4 Moderately disagree 9 Neither agree nor disagree 13 Moderately agree 3 Strongly agree 1 Mean 2.6

58. Services provided by shipping companies are satisfactory. N = 30 Table 4.14 1 2 2.93 3 4 5 Figure 4.15 Rating Number of Responses Strongly disagree 2 Moderately disagree 9 Neither agree nor disagree 8 Moderately agree 11 Strongly agree 0 Mean 2.93

59. Infrastructure available to Indian Cycle Industry is optimum. N = 30 Table 4.15 1 2 2.1 3 4 5 Figure 4.16 Rating Number of Responses Strongly disagree 11 Moderately disagree 8 Neither agree nor disagree 8 Moderately agree 3 Strongly agree 0 Mean 2.1

63. Conclusion