INTERNSHIP REPORT ON SUZUKI

ABBOTTABAD MOTORS

SUBMITTED BY: AMEER HAMZA SABRI

Roll # 6130 BBA (Finance)

Department Of Management Sciences

Abbottabad University of Science And Technology
Session 2018-2022
 INTERNSHIP REPORT ON SUZUKI
ABBOTTABAD MOTORS

Internship report is submitted to the department of

Management sciences in partial fulfillment of the
requirements for the degree of Bachelor of Business
Studies

Department of Management Sciences

Abbottabad University of Science & Technology

2018-2022

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 Department of Management Sciences

Abbottabad University of Science & Technology

Approval committee

Supervisor:

Signature ___________________

Name Dr. Mudassar khan

Designation Assistant Professor

External Examiner:

Signature ___________________

Name ___________________

Designation ___________________

Coordinate Research & Development Division:

Signature ___________________

Name ___________________
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 Dedication
I would like to dedicate this report to my most dear parents and respected
teachers who guided me through my studying carrier and still doing their best
for me. To be here in this institution at this level, I am just because of my
parents, especially their training, guidance, love, affection and motivation. I
pray that I can serve my parents as best as I can.

“Parent’s Blessings are Our Most Valuable Assets”

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 PREFACE
To be pragmatic in a field of study, applying theoretical knowledge in an
organization to gain practical experience is vital for every individual. Training
nowadays, plays a vital role in shaping future of the organization and
individual, in particular, in this world of corporatism. Organization use
sophisticated methods to train their employees so to make them enable
compete in the market, and ensure organization to be a leader of the market.
Students are provided training opportunities through internship to display their
capabilities and efficiency.

I choose to do internship in Suzuki Abbottabad Motors. Though eight weeks

period is not sufficient to understand all the operations of organization, but
still it was a great experience to have a feel of practical world and keeping in
view the limitation of study, this seems a reasonable attempt. Internship in
Suzuki Abbottabad Motors was true learning experience for me. I have
exclusively studied and observed the organizational structure, remittance
department and various other departments.

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 Acknowledgements
I would start this report by saying that ALLAH Almighty has graced me with
enough energy to work in this period and complete this report. First of All, I
would acknowledge my Parents who encouraged me to do (BBA). Their
Prayers enable me to complete this report. I would really acknowledge my
Teacher Dr. Muddasar Khan who provided me opportunity to work on this
report. He really encourages me to complete this report in a very short period
of time & provided me helpful Material Regarding this project.

This report would not have been possible without his valuable suggestion,
keen interest and expertise knowledge. I convey my heartiest and sincerest
acknowledgement to my worth and friends. In the end I want to present my
unbending thanks to all those hands who prayed for my betterment and
success.

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 Table of Contents
PREFACE...................................................................................................................i
Acknowledgements....................................................................................................ii
Executing Summary..................................................................................................ix
CHAPTER 1...............................................................................................................1
INTRODUCTION TO THE REPORT......................................................................1
1.1 Background of Study:............................................................................................1
1.2 Objectives of the study...........................................................................................1
1.3 Purpose of Study:...................................................................................................1
1.4 Scope of Study:......................................................................................................2
1.5 Limitations of Study:.............................................................................................2
1.6 Research Methodology:.........................................................................................3
CHAPTER 2...............................................................................................................4
INTRODUCTION TO SUZUKI MOTOR..............................................................4
2.1 Brief History:.......................................................................................................4
2.1.1 Present status of The Organization:................................................................4
2.1.2 Comparison with other units:..........................................................................5
2.1.3 Vision.................................................................................................................6
2.1.4 Mission...............................................................................................................6
2.1.5 Board of Directors:...........................................................................................6
2.1.6 Branch Networks:.............................................................................................9
2.1.7 Chairman Suzuki Met PM Pakistan:............................................................10
2.1.8 Family Day:.....................................................................................................10
2.1.9 Certified Used Car Gala:................................................................................10
2.2.0 Training and Development:...........................................................................10
2.2.1 Customer Care:...............................................................................................11
2.2.2 Exchange Offer:..............................................................................................11
2.2.3 Certified by Pak-Suzuki.................................................................................11
2.2.4 Directors..........................................................................................................13
2.2.5 Audit & Supervisory Board Member............................................................13
2.2.6 Executive Vice President................................................................................13
2.2.7 Senior Managing Officers...............................................................................13
2.2.8 Managing Officers..........................................................................................13
2.2.9 Departmentalization of Suzuki Motors:........................................................14

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2.3.0 Sales Department:...........................................................................................14
2.3.1 Accounts Department:....................................................................................15
2.3.2 Service Department:.......................................................................................15
2.3.3 Customer Service Department:......................................................................16
2.3.4 Spare Parts Department:................................................................................17
Review of Suzuki Abbottabad Motors....................................................................17
2.4 Introduction:......................................................................................................17
GD 110S:...................................................................................................................17
GS 150SE & GS150:.................................................................................................18
GIXXER:...................................................................................................................18
SUZUKI INAZUMA:................................................................................................18
ALTO:.......................................................................................................................18
WAGONR:................................................................................................................18
CULTUS:..................................................................................................................19
SWIFT:......................................................................................................................19
VITARA:...................................................................................................................19
BOLAN:....................................................................................................................19
CARGO VAN:..........................................................................................................19
RAVI PICKUP:.........................................................................................................20
2.5 Organization Structure:....................................................................................20
2.6 Departmentalization of the Branch:.................................................................21
2.7 Services Provided at the Branch:......................................................................21
CHAPTER 3.............................................................................................................24
FINANCIAL AND SWOT ANALYSIS.................................................................24
3.1.0 Introduction:...................................................................................................24
3.1.2 Bookkeeping:...................................................................................................25
3.1.3 Management of company’s cash flow:...........................................................25
3.1.4 Management of Taxes:....................................................................................25
3.1.5 Bankers:...........................................................................................................26
3.1.6 General Sales Tax:..........................................................................................26
3.1.7 Business Accounts:..........................................................................................27
3.1.8 Payment & Receipt Vouchers:.......................................................................27
3.1.9 Cash Payment Vouchers (CPV):....................................................................27
3.2.0 Cash Receipt Voucher (CRV):.......................................................................28
3.2.1 Bank Payment Voucher:.................................................................................29

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3.2.2 Bank Receipt Voucher:...................................................................................30
3.2.3 Journal Voucher (JV):....................................................................................30
3.2.4 Analysis of Financial Statements...................................................................31
3.2.5 Vertical Analysis.............................................................................................34
3.2.6 Horizontal Analysis.........................................................................................36
3.3.0 Financial Ratio Analysis.................................................................................38
3.3.1 Short Term Liquidity Analysis:.....................................................................38
3.3.2 Quick Acid Test Ratio:...................................................................................39
3.3.3 Equity Ratio:...................................................................................................39
3.3.4 Profitability Analysis Ratio:...........................................................................39
3.3.5 Return on Average Asset:...............................................................................40
3.3.6 Return on Average Equity:............................................................................40
3.3.7 Long term Solvency Ratio:......................................................................41
3.3.8 Debt to Equity Ratio:......................................................................................41
3.3.9 Interest Rate Risk Management Ratios:.......................................................42
3.4.0 SWOT Analysis:..............................................................................................42
3.5.0 PEST ANALYSIS...........................................................................................44
3.5.1 Political Environment:......................................................................................44
CHAPTER 4.............................................................................................................46
4.1 Findings:.............................................................................................................46
CHAPTER 5.............................................................................................................49
5.1 Conclusion:.........................................................................................................49
5.2Recommendations...............................................................................................50
5.3 IMPLEMENTATION AND ACTION PLAN..................................................51
References:...............................................................................................................53

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 List of Table

Table3.2.4…………………………………………………………………33
Table3.2.5…………………………………………………………………35
Table3.2.6…………………………………………………………………37

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 List of Figures

Fig Departmentalization of Suzuki Motors………………………………14

Fig Organizational Structure……………...……………...........................20

Fig Departmentalization of Branch……………………………………….21

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 List of Acronyms

BBA Bachelor of Business Administration

HR Human Resources

R&D Research and Development

IT Information Technology

SWOT strength weakness opportunities threat

IP Intellectual property

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 Executing Summary
Suzuki Motor Corporation designs and manufactures passenger cars,
commercial vehicles, motorcycles, all-terrain vehicles (ATVs), outboard
motors and other products. The company continuously and vigorously
promotes technical cooperation through numerous joint ventures overseas, and
its main production facilities are currently located in 23 countries and regions
overseas. The established network enables Suzuki to operate as a global
organization serving 196 countries and regions. Pak Suzuki Motor Company
Limited (PSMCL) was established, as a joint venture between Pakistan
Automobile Corporation (PACO) and Suzuki Motor Corporation (SMC) -
Japan. The Company was incorporated as a public limited company in August
1983 and started commercial operations in January 1984. Pak Suzuki is
engaged in progressive manufacturing, assembling and marketing of Suzuki
brand vehicles and motorcycles in Pakistan, under license from SMC-Japan.
The initial shareholding of SMC-Japan in PSMCL was 12.5%. The company
was privatized in 1992. SMC-Japan after acquiring additional shares from
PACO enhanced its shareholding to 40% and took over the management.
SMC-Japan gradually increased its shareholding in the company to 73.09%.
After privatization Pak Suzuki invested heavily in plant expansion and up-
gradation. The Company progressively enhanced its production capacity from
50,000 units per annum in the year 1992 to 150,000 units per annum in year
2007, making it the largest Automobile Production facility in Pakistan. Pak
Suzuki is considered pioneer of Automobile Business in Pakistan. The
vehicles produced by the company include Cars, Small Vans, Pickups and
Motorcycle. The company has played an important role in the development of
vendor base in Pakistan. Following the aggressive policy of Indigenization,
Suzuki vehicles have achieved a healthy local content of up to 72%. This was
made possible by providing strong support and technical assistance to the
vendor industry of Pakistan. The company has also provided land to some of
its vendors in the vicinity of Pak Suzuki plant for better coordination and
support. Pak Suzuki has the largest Dealers network offering 3S (Sales,
Service and Spare Parts) facilities in Pakistan. The company currently has 77

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dealerships spread across 27 cities. The company enjoys a dominant position
in small & medium size cars and light commercial vehicles market in
Pakistan. Pak Suzuki was able to hold and maintain around 50% market share
in Cars and Light Commercial Vehicles segment. Pak Suzuki maintains its
lead by controlling its costs, offering wide range of vehicles as per
requirement of Customers, providing high quality products and maintaining
production efficiency. Pak Suzuki has registered a rapid growth during 2002 to
2007. The Company sales increased from 29,000 units in 2002 to 124,000
units in 2007. To catch-up with the increasing demand, Pak Suzuki heavily
invested in plant facilities and product range up gradation. The average capital
expenditure remained over Rs. 1 billion per year during this period. The
current Investment of Pak Suzuki in plant and facilities stands at Rs.12.7
billion. The company’s production and number of employees have multiplied
in line with increasing investments. Pak Suzuki is also exporting Suzuki Ravi
pickup, Liana car to Bangladesh and components to Europe and Japan since
1997, thus earning precious foreign exchange for the country. Pak Suzuki’s
accumulated exports to date totaled USD 12.6 million. Pak Suzuki is built on
philosophy of Corporate Citizenship and has committed itself to improve
Environment. Pak Suzuki is pioneer in introduction of environment friendly
factory fitted CNG vehicles. The Company continuously monitors the waste
generated from its activities and wherever required has Environmental Control
Equipment and facilities in place. The company has also installed state of the
art waste water treatment plants to ensure safe disposal of water in to the
environment. Pak Suzuki Motor Company is committed to conducting
business as a socially responsible citizen and continuously makes
contributions in the area of corporate social responsibility. The company
considers its duty to help the nation in difficult times, whether it is floods of
July 2010 or earthquake of October 2005, the company has always made its
valuable contribution to support the nation. The Company remains committed
to continue its support in this important area. Pak Suzuki always endeavors to
go aggressively for the sound development of the society by increasing
motorization, industrialization and creating job opportunities thus improving

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the people is living standards with the combined efforts of all the dealers,
vendors and Pak Suzuki employees.

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 CHAPTER 1

INTRODUCTION TO THE REPORT

1.1 Background of Study:

This report is fundamental part of the BBA (hons) degree necessities that is
offered by the Abbottabad University of Science and technology. It is based
on two month’s study internship programs that the students had to experience
with the recognized organization and is mandatory to be submitted to
Abbottabad University of Science and technology. This internship report is
aimed at studying and analyzing the Suzuki Abbottabad Motors.

1.2 Objectives of the study

The rationale behind this report is to provide the students, an opportunity to
equip themselves with useful knowledge of organizations, to gain an
experience of working environment and help them to easily mold and adjust
themselves according to the culture of the organization.

In this regard analyzed the working of Suzuki Abbottabad Motors with an aim
to learn and implement the theoretical knowledge learned in classrooms. This
office works in every district of the country and manages expenses, revenues,
salaries and budget of employees. The main objectives are; to gather relevant
information, interpret and analyze the information. To apply the book
knowledge to a practical situation. To get exposure and to develop
interpersonal skills.

1.3 Purpose of Study:

The specific objectives of the report are to know in details about the
operations of Suzuki Motors. The project has been directed by the following
objectives:

 Exploring that how Suzuki Motors. Control their total financial

activities.

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  Exploring that how Suzuki Motors. Control their inventory
management.
 Exploring the performance of Suzuki Motors.

 Exploring the emergence of Suzuki Motors and its contribution in the

economy of Pakistan.

 To apply the practical knowledge in this theoretical area

 To know about the various kinds of product and service provided by

Suzuki Motors.

 To analyze the performance regarding the activities of Suzuki Motors

 To compare the performance of Suzuki Motors with its Competitors.

 Finally, to identify the findings regarding the financial activities or

other relevant things those are essential for the Companies and give
some recommendations to overcome the problems those are found.

1.4 Scope of Study:

Due to the limitation of time, the scope of this report is limited. The report
covers the organizational structure, background, functions and the
performance of the Suzuki Abbottabad Motors. The scope of the study is just
to acquaint with the operational scenario of Suzuki Abbottabad Motors.

1.5 Limitations of Study:

There were some limitations of the study and therefore the report may lack
some crucial data. Such as;

♦ The general activities of Finance department are so vast. So that’s why they
were not being able to give me enough time.

♦ Time of my internship program was very short. So, it was not possible to
collect more information within this short time.

♦ They did not provide me vast information because of their official

obligations.

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♦ All the information is not included in this report due to confidentiality of
organization.

The project has encountered these limitations that may have hinder progress.
But with

constant effort, my goal was to minimize the negative efforts of these

limitations.

1.6 Research Methodology:

For writing this report the information has been collected by following ways.

There are two types of data used for report writing.

a) Primary data collection

The data, collected for the first time and exist in raw form, is called primary
data. It includes

1. Personal Observations,

2. Working with staff members.

3. Interviewing staff members.

b) Secondary data collection

The data gather from existing sources are called secondary data. They are in
processed form. The main source of secondary data of the Suzuki Abbottabad
motor is:

1. Annual report of the Suzuki Abbottabad motor

2. Manuals
3. Relevant book
4. Newspaper
5. Previous internship report of Suzuki Abbottabad motor

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 CHAPTER 2

INTRODUCTION TO SUZUKI MOTOR

2.1 Brief History:

Pak Suzuki Motor Company Limited was formed as a joint venture between
Pakistan Automobile Corporation and Suzuki Motor Corporation (SMC)
Japan.

The Company was incorporated as a public limited company in August 1983

and started commercial operations in January 1984. The initial shareholding of
SMC was 12.5% which was gradually increased to 73.09%. Pak Suzuki is
pioneer in Automobile Business having the most modern and the largest
manufacturing facilities in Pakistan with an Annual production capacity of
150,000 vehicles. The vehicles produced include cars, small vans, Pickups,
Cargo vans and Motorcycle. Pak Suzuki holds more than 50% Market Share.
Following the aggressive policy of Indigenization, Suzuki vehicles have a
healthy local content up to 72%. This was made possible by strong support of
our vendors.

Pak Suzuki has the largest Dealers network offering 3S (Sales, Service and
Spare Parts) facilities across Pakistan. Caring for the Environment Pak Suzuki
was pioneer in introduction of Factory fitted CNG vehicles. Pak Suzuki
always endeavors to go aggressively for the sound development of the society
by increasing motorization, industrialization and creating job opportunities
thus improving the people’s living standards with the combined efforts of all
the dealers, vendors and Pak Suzuki employees. Pak Suzuki is also exporting
Suzuki Ravi pickup, Liana and components to Pakistan and Europe thus
earning precious foreign exchange for the country.

2.1.1 Present status of The Organization:

Suzuki the 1st in Pakistan, Pioneer in Pakistan automobile industry, largest
dealership network, highest market share, has become a household name.

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Company increased its market share from 58% of last year to 62%.

2.1.2 Comparison with other units:

Pak Suzuki Motor Company Limited (PSMC) has witnessed a 35 percent
growth to 70,162 units in 8MFY12 as against the sales of 52,067 units in the
same period last year. Highest growth was observed in the sales of Suzuki
Swift of 86 percent to 4,500 units as against 2,420 units in the same period last
year. Suzuki Cultus under the domain of 1000cc segment witnessed a
handsome 38 percent jump in its sales to 9,573 units in the comparison of
6,919 units in the same period last year, followed by Suzuki Alto whose sales
also experienced a massive 32 percent growth to 9,854 units versus 7,438 units
in the same period last year. Above all, Suzuki Mehran and Suzuki Bolan both
segments posted growth of 37 percent and 47 percent respectively.

Indus Motor Company Limited (INDU) witnessed a four percent growth in

sales to 34,366 units in 8MFY12 as against 32,991 units in the same period
last year. Hilux, under pick up segment led the growth in sales of the company
with a gigantic 88 percent to 2,561units as against 1,374 units in the same
period last year. Toyota Corolla posted an upsurge in sales by six percent to
29,040 units as against 27,423 units in the same period last year. Core
remained as the only segment of the company whose sales experienced a
substantial decline of 34 percent to 2,765 units as against sales of 4,194 units
in the same period last year.

Honda Atlas Cars Pakistan Limited (HCAR) has posted a biggest decline in its
sales of 33 percent to 7,024 units in 8MFY12 as against 10,444 units in the
same period of previous year. The plunge in the sales of the Honda cars was
primarily because of the substantially lower sales of its both brands Honda
City and Civic. Sales of Honda Civic were decline by a massive 37 percent to
2,781 units as against the sales of 4,446 units while sales of Honda City were
lower by 29 percent to 4,243 units as against 5,998 units in the same period
last year. The main reason behind the decline in the sales of was suspended
operation from December 2011 to February 2012 on the back of unavailability

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of the parts owing to floods in Thailand from where the company imports
CKD kits.

As far as the market share is concerned, Pak Suzuki Motor Company leads the
market with 63 percent market share followed by Indus motor company and
Honda Atlas Cars with 31 percent and 6 percent market share in 8MFY12.
Comparison is showing that Pak Suzuki is going well than other automobile
units

2.1.3 Vision
To be recognized as a leading organization that values Customers‟ needs and
provides motoring solutions with strong customer care.

2.1.4 Mission
Strive to market value packed vehicles that meet customer’s expectations.

Provide a platform where our stakeholders passionately contribute, invest and

excel.

Make valuable contribution to social development of Pakistan., To provide

automobile of international quality at competitive price., To improve skills of
valued employees by imparting training and inculcating in them a sense of
participation. To achieve maximum indigenization and promote Pakistan's
automobile vending industry.

Management Structure of Suzuki Motor:

2.1.5 Board of Directors:

Kinji Saito

Mr. Kinji Saito graduated from Hiroshima University, Japan. He has been
associated with Suzuki Group since 1981. He has worked in different
capacities with Suzuki Motor Corporation, Japan and its overseas subsidiaries.
As Head of Rep. Office in India from January 2000 to May 2002. As Director
Marketing & Sales of Maruti Suzuki India from May 2002 to March 2006. As
President of American Suzuki Motor Corporation from July 2008 to March

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2011. He joined Pak Suzuki Motor Company Limited as Nonexecutive
Director on October 9, 2013.

Masafumi Harano

Mr. Masafumi Harano, has been associated with Suzuki Group since 1988. He
has worked in different capacities with Suzuki Motor Corporation, Japan and
its overseas subsidiaries. He worked as in-charge of Overseas Automobile
Marketing, North America, South and East Asia, Europe, Middle East and
Africa. He worked as Managing Director of Suzuki Canada Inc. from 2004 to
2007. He joined Pak Suzuki Motor Company Limited as Managing Director
on July 10, 2017.

Hirofumi Nagao:

Mr. Hirofumi Nagao graduated from Osaka University of Foreign Studies,

Japan. He has been associated with Suzuki Group since 1978. He has worked
in different capacities with Suzuki Motor Corporation, Japan and its overseas
subsidiaries. As Managing Director of Pak Suzuki Motor Company Limited
from June 1994 to April 2000. As Joint Managing Director of Maruti Suzuki
India from October 2004 to December 2007. He has worked again with Pak
Suzuki as Managing Director from June 20, 2008 to July 9, 2017. Since July
10, 2017, he has been working as Senior Advisory Director in Pak Suzuki.

Shigeo Takezawa:

Mr. Shigeo Takezawa, has been associated with Suzuki Group since 1985. He
has worked in different capacities with Suzuki Motor Corporation, Japan and
its overseas subsidiaries. He has worked as the Marine Sales Planning
Manager at American Suzuki Motor Corporation from 1994 to 2000, President
of Suzuki Motor de Mexico from 2009 to 2014 and Department General
Manager for Oceania and Latin American Automobile Department from 2014
to 2017. He has been assigned as Department General Manager of Asia
Automobile Department in June 2017. He has joined as Nonexecutive Director
of Pak Suzuki with effect from July 10, 2017.

Kazuyuki Yamashita:

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Mr. Kazuyuki Yamashita has been associated with Suzuki Group since 1987.
He is currently working as Group Manager of Asian Automobile Group 1 in
Suzuki Motor Corporation. He worked as Director, Automotive Sales of
Suzuki Canada from 2001 to Africa from 2007 to 2013. He joined Pak Suzuki
Motor Company Limited as Director on September 16, 2015.

Rukhsana Shah:

Rukhsana Shah had a distinguished civil service career spanning more than 35
years. She obtained in-service training in international marketing, project
management, dispute settlement mechanism and cluster development from
institutions in Rotterdam, Washington, Geneva and Turin. She had varied
postings in different departments, served as Economic and Commercial
Counselor at the Pakistan High Commission in London and was a faculty
member at the National School of Public Policy (former Staff College). She
retired as Federal Secretary, Ministry of Textile Industry, Islamabad in 2014.
She was nominated by the Ministry of Finance as Independent Director on the
Board of First Women’s Bank in January 2016. She regularly writes articles
for the Opinion Page of Dawn Pakistan on issues relating mainly to social
justice, welfare, education and gender.

Moin M. Fudda:

Mr. Moin M. Fudda has over 40 years of professional experience which

encompasses working for the corporate sector and performing diplomatic
duties. He holds MBA (Insurance & Risk Management) from St. Jones
University, New York. He is a Director on the Board of Pakistan Stock
Exchange (PSX) & Central Depository Company (CDC) and was recently
elected as Chairman of the Board of CDC. He is also an Independent Director
at Al-Meezan Investment Management Limited as well as a Country
Representative for SCOR – A Global 1 Tier Reinsurer. He is also a Member
Board of Karachi Council on Foreign Relations and a Member, Executive
Committee of English-Speaking Union of Pakistan. Moreover, since 2003, he
continues to serve as a Chairman/Member of Alternate Dispute Resolution
Committees (ADRC) of the Federal Board of Revenue. Prior to joining KSE,

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he was Country Chief of New Zealand Insurance and Commercial Union (CU
now AVIVA) and founder MD of CU Life (now Jubilee Life) Since 1990. He
has been serving as the Honorary Council General of New Zealand for
Pakistan. He is Country representative for SCOR - A Global Tier - 1
Reinsurer. In 2006 Mr. Fudda was conferred Sitara-e-Imtiaz (S.I.) by the
President of Pakistan.

2.1.6 Branch Networks:

Suzuki Motors have Total 149 Dealership branches across the country lists of
dealership network are as follow:

Azad Kashmir:
Dadyal 1 Kotli 1 Mirpur 1 Muzaffarabad 1

Balochistan:
Gwadar 1 Kuchlak 1 Quetta 2

Khyber Pakhtunkhwa:
Abbottabad 1 Battagram 1 Charsadda 2 D.I. Khan 1 Dir 1 Gilgit 1 Haripur 1
Haveliyan 1 Kohat 1 Mansehra 1 Mardan 1 Nowshera 1 Peshawar 4 Swabi 1
Swat 1

Punjab:
Alipur 1 Bahawalnagar 1 Bahawalpur 1 Bhakkar 1 Burewala 1 Chakwal 1
Chichawatni 1 Chiniot 1 Chishtian 1 Chunian 1 D.G.Khan 1 Daska 1 Dipalpur
1 Faisalabad 3 Gujar khan 1 Gujranwala 1 Gujrat 1 Islamabad 6 Jhang 1
Jhelum 1 Kamonki 1 Kasur 1 Khanewal 1 Khanpur 1 Kharian 1 Khushab 1
Kot Addu 1 Lahore 18 Layyah 1 Lodhran 1 Mandi Bahauddin 1 Mianchannu
1 Mianwali 1 Multan 6 Narowal 1 Okara 1 Pakpattan 1 Pasrur 1 Rahimyar
khan 2 Rajanpur 1 Rawalpindi 4 Sadiqabad 1 Sahiwal 2 Sarghodha 1
Sheikhupura 1 Shorkot 1 Sialkot 2 Talagang 1 Taxila 1 Toba Tek Singh 1
Vehari 1 Wazirabad 1

Sindh:

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Badin 1 Hyderabad 5 Karachi 19 Larkana 1 Makli 1 Mirpur Khas 1 Moro 1
Nawabshah 1 Sukkur 3 Tando Allahyar 1

Activities Performed by Suzuki Motors:

2 million Vehicles Line-Off Ceremony:

A ceremony was held on 26th November 2018 to celebrate the landmark

achievement of 2 million vehicles line–off in Pakistan. Chairman Suzuki
Motor Corporation, Mr. Osamu Suzuki graced the occasion with his presence
and Advisor to Prime Minister for Commerce, Textile, Industry & Production,
Mr. Abdul Razzaq Dawood was cordially invited as chief guest of the
Ceremony. Milestone of 2 million vehicles was the result of coordinated
efforts of employees of PSMC, suppliers, dealers and continued patronage by
customers.

2.1.7 Chairman Suzuki Met PM Pakistan:

Mr. Osamu Suzuki, Chairman Suzuki Motor Corporation - Japan and his team
along with the ambassadors of Japan - Pakistan, Mr. Masafumi Harano, CEO
Pak Suzuki and Mr. Kinji Saito, Chairman Pak Suzuki met Mr. Imran Khan,
Prime Minister of Pakistan on 27th November, 2018 at PM Office Islamabad.

Chairman Suzuki Visited Authorized Dealership:

Mr. Osamu Suzuki, Chairman Suzuki Motor Corporation - Japan, his team and
Mr. Masafumi Harano, CEO Pak Suzuki visited authorized dealership.

2.1.8 Family Day:

The Company also celebrated the grand event of Family Day at PAF Museum,
Karachi. A separate family area was designated for kids where diverse
activities were organized for amusement of children of every age, followed by
a grand musical show.

2.1.9 Certified Used Car Gala:

Pak Suzuki held multiple Used Car Galas during the year 2018. The events
received tremendous public patronage

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2.2.0 Training and Development:
In the year 2018, 720 locals as well as 12 foreign trainings were conducted for
the benefit of the employees to further improve their productivity and skills
related to their work responsibilities

Sports and Social Events:

The Company arranges sport tournaments for recreation and entertainment of

employees and to provide an environment where all employees can enjoy
without any stress and job pressure.

Services Offered by Suzuki Motors:

2.2.1 Customer Care:

Pak Suzuki provides after sales service to the satisfaction of our valued
customers with fully equipped workshops having well trained service staff at
Country wide Showrooms and Dealers network.

2.2.2 Exchange Offer:

Suzuki exchange program provides the most convenient way to upgrade from
your old car to a New Suzuki by just paying the difference. Whereas you can
also exchange your old car from Suzuki certified used car.

Bring your old car to any Suzuki 3s dealership and avail this best offer by Pak
Suzuki.

Best price for your used car

Priority delivery in exchange

Exchange opportunity with Suzuki new/ certified used car by just paying the
difference.

SUZUKI CERTIFIED USED CARS:

Now you can drive the Suzuki Certified Used Car of your choice without it
being heavy on your wallet with a name that you have trusted for decades.
With Suzuki Certified Used Cars, you can be assured that you will get the best
value for your money.
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2.2.3 Certified by Pak-Suzuki
1 Year warranty

Evaluation on 130 Check Points

SUZUKI CAR INSURANCE:

Suzuki Insurance Arrangement Program is a comprehensive solution to all

your Auto Insurance needs. The program is exclusively available at Suzuki
Margalla Motors.
The unique features are as follows:

Best premium rates.

Fastest claim settlement time.

Largest Country Wide Dealer Network Support.

Online/Instant policy issuance (Walk in - Drive out Insured).

Repairs at Pak Suzuki Authorized Dealer workshops only.

Policy Acceptance / Claim settlement at Suzuki Margalla Motors.

Quality Repairs Using Suzuki Genuine parts with 6 Months Warranty on parts.

Suzuki Motors’s Management

Representative Directors

Representative Director and Osamu Suzuki

Chairman

Representative Director and Yasuhito Harayama

Vice Chairman

Representative Director and Toshihiro Suzuki

President

12
Representative Director and Osamu Honda
Senior Technical Executive

2.2.4 Directors
Director and Managing Officer Masahiko Nagao
Toshiaki Suzuki
Director (Outside Director) Osamu Kawamura
Hideaki Doumichi
Yuriko Katou

2.2.5 Audit & Supervisory Board Member

Audit & Supervisory Board Toyokazu Sugimoto
Member Masato Kasai
Audit & Supervisory Board Norio Tanaka
Member Nobuyuki Araki
(Outside) Norihisa Nagano

2.2.6 Executive Vice President

Executive Vice President Kenichi Ayukawa

2.2.7 Senior Managing Officers

Senior Managing Officer Ichizo Aoyama

2.2.8 Managing Officers

Managing Officer Taisuke Toyoda
Keiichi Asai
Kazuki Yamaguchi
Kinji Saito
Keiji Miyamoto

Job Description:

13
 Most of employees hold MBA degrees especially the employees which are
working at Customer Care department and Sales Department.

Some employees doing MBA with their job Question arises Is MBA degree
required??? Answer is probably yes because of Job assignments.

Sales Department: Communication skills, market eye, making PR

Customer care department: need computer expert because of most the works
of this department are related to computer, used CRM software

Accounts department: B. Com and M. Com required because its related

accounts simple

Spare Parts department: Know to use DMIS software

Service department: Auto mechanics required

2.2.9 Departmentalization of Suzuki Motors:

Sales Customer care

department department

Display of Accounts
Products department

Service Spare parts

department department

2.3.0 Sales Department:

Sale department deals in new and used vehicles. They maintain the stock of
cars in the showroom and entertain every customer who is interesting in
buying and selling the Suzuki vehicles. Another department which is not the

14
part of sale department but it is situated in sale department is IT department,
because the designation of IT coordinator and (CCM) Customer Care Manager
hold the same person, IT coordinator is responsible of any trouble shooting,
networking related issues and Software problems. (DMIS) Dealer
Management Information System and (CRM) Customer Relation Management
are software’s, used in the Suzuki Motors.

2.3.1 Accounts Department:

Account department is managed by an account manager who is responsible for
making all the financial reports for a specified time. This department also
holds the responsibility of preparing all activities are performed by DMIS.

2.3.2 Service Department:

Service department is the busiest department in the Suzuki Motors, which not
only provide service but also advice the drivers/owners of the vehicle for long

15
lasting performance and peace of mind. For the purpose of providing quality
and assurance services, the company has set a big work shop and has latest
and upgraded equipment for maintenance.

2.3.3 Customer Service Department:

Dealership is so conscious in customer related matters and Customer Care Managers
remain very Close to customer and handles any problem wisely. The clients who are
served by the dealership are called by soon after 72 hours by Customer Care
Manager and asked about any inconvenience faced. If there is any complaint
from clients, first it is resolved and customers are assured then the cause of
complaint is found. Having gone through the process, Customer Care Manager
presents report to the General Manager who ensures that the sailing is smooth
and the satisfaction of customer is achieved. This is a fast mechanism for
managing and scheduling follow-up sales call to assess post-purchase
cognitive dissonance, repurchase probabilities, repurchase times and visit
frequencies. It is clear mentioned on the entrance of every department that “In
case of any inconvenience please free to contact Customer Care Manager” and
contact number is also given.

In this way customers are encouraged to keep long lasting relationship with
dealership became a loyal customer, because retaining of customer is far more
difficult than to acquire a new one.

The customers are different in nature, their needs are different in this matter
the employees of Suzuki Abbottabad Motors are taught few guidelines to
handle the customers.

• They never leave the courtesy because it is key to success.

• They always give preferences to customer’s view of point and opinions.

• Customer Care Manager continuously looks for the ways to help and
improve relationship with customers. He works actively and keep an eye on
the problem faced by the customers.

16
2.3.4 Spare Parts Department:
This department is working specially for the assistance of service department
by providing the required spare parts on the request of technicians. It’s also
maintains, updates the inventory and further order to replenish the stock in the
store using DMIS.

Suzuki Abbottabad Motor's structure is specific, classified, has group the job
in departments efficiently which comes in the departmentalization. Each
department performs its function that reflects the organization's purpose and
work.

SECTION B

Review of Suzuki Abbottabad Motors

2.4 Introduction:
Suzuki Abbottabad Motors are situated at Salhad Road. It is an Authorized 7s
Dealership of Pak Suzuki Motors Company Limited. Suzuki Abbottabad
motors providing services since 2007 till now.

Product Line:

Motorbikes:

GD 110S:

17
GS 150SE & GS150:

GIXXER:

SUZUKI INAZUMA:

ALTO:

WAGONR:

18
CULTUS:

SWIFT:

VITARA:

BOLAN:

CARGO VAN:

19
 RAVI PICKUP:

2.5 Organization Structure:

CEO
(Samiullah)

Executive Director
(Adnan Samiullah)

Managing Director
(Muhammad Ali Naeem)

After Sales Manager Used Car Manager Corporate sales Manager Service Manager
Finance Manager Accounts Manager Sales Manager (Malik
(Mis Saima) (Tahir Khan) (Anees Khan) (Hamid Khan)
(Ihsan ul haq) (Shakeel Shenwari) Babar)

Assistant Finance Manager Corporate Sales Executive Sales Executive Assistant Sales Executive
(Mohsin Khan) (Abdul Kabeer) (Shahab Khan)

Mechanic Electrician Technician Paint Boot Body Shop

20
 2.6 Departmentalization of the Branch:

Human Resource Department

Finance Department

Accounts Department

Sales Department

Services Department

Customer Relations Department

IT & Social Media Department

2.7 Services Provided at the Branch:

Sales:
Sales of new and used cars are performed at Suzuki Abbottabad Motors. This
Department is working under Sales Manager (Malik Babar) buying and selling
of new and used cars are performed through demand draft. Customer have to
pay the Demand draft at bank while purchasing the car from Suzuki
Abbottabad Motors.

After Sales:
After Sales services are provided at Suzuki Abbottabad Motors. This
Department is performing their duties Under the supervision of After Sales
Manager (Miss Saima) in after sales service Suzuki Abbottabad Motors offer
FFI (First free Inspection) is due at 1000 Km or 1.5 months. However, this
facility can be availed up to 1500 Km or 3 months whichever comes first. The
First Free Service includes items as recommended in maintenance schedule.
SFI (Second Free Inspection) is due at 5,000 Km or 3 months. However, this
facility can be availed up to 6 Months (not exceeding 5,000 Km). The Second

21
Free Service includes Free Inspection and Labor free service as recommended
in maintenance schedule.

The vehicle maintained by Suzuki Authorized Dealers at 1,000 Km is eligible

to avail 5,000 Km inspection and Labor Free Service. Aftersales operations
ensure efficient services to customers through smooth workshop operations
and timely availability of parts at dealerships. As a result, the dealers’
operations showing increasing trend. Total number of automobile job cards
(services provided to customers for schedule maintenance, running repairs,
mechanical repairs, body and dent jobs) reached up to 1.248 million, showing
growth of 11% as compared to last year. The motorcycle aftersales market
also shown positive trend in business operations.

22
Bank Leasing:
Suzuki Abbottabad Motors also offer Bank Leasing services to their customers
while the customer demand Bank Leasing Suzuki Abbottabad Motor give
customers cars to the bank for leasing, bank give full amount of car to the
dealership and the customers give monthly installments to the bank. Suzuki
Finance Arrangement Program is the most convenient and hassle-free way of
getting your car financed. Now you can sit back & relax at your home or
office. Suzuki Finance arrangement program is a one of its kind innovative
financing solution having multiple value-added benefits.

Body Parts:
Suzuki Abbottabad Motors sell body parts to the customers but the vendor of Suzuki
Abbottabad Motors is Pak Suzuki Motors. Dealership buy each and every
spare part from Pak Suzuki Motors. Customers can buy spare parts from
Suzuki Abbottabad Motors Dealership. The Automobile Parts sales for the
year recorded Rs 3,085 million, showing overall growth of 33% as compared
to last year. Yearly sales for Engine Oil reached to 2,045,220 liters, which
shows growth of 23% as compared to last year. The motorcycle parts sale also
reached to Rs. 212 million showing growth of 15% as compared to last year.

Workshop:
Suzuki Abbottabad Motors offers workshop services to the customers this
service includes every repairing need of the customers. Suzuki Abbottabad
Motors workshops with skilled manpower to serve in all major cities are
equipped with state-of-the-art latest technology, tools & equipment’s and
technical manpower to handle conventional and Electronic Fuel Injection
(EFI) system.

23
 CHAPTER 3

FINANCIAL AND SWOT ANALYSIS

3.1.0 Introduction:
Finance Department of Suzuki Abbottabad Motors is responsible for
collecting and disbursing all funds. It is also responsible for overseeing the
current operating budget set forth by the Board. Accounting functions are
performed for all of Departments.

The primary functions of the Suzuki Abbottabad Motors Finance Department

are:

Payroll – The Finance Department is responsible for processing monthly

payrolls for employees.

Collections – The Finance Department is responsible for collecting on past

due accounts and working with collection agencies, when necessary.

Information Systems – The Finance Department is responsible for the network

and all the components to ensure the day-to-day systems of the Village are
running, reliable, and redundant. It includes everything from hardware and
software to the cameras, and phone systems. Also, we strive to ensure
information is readily accessible, timely and accurately provided to
departments through various lines of communication.

Police Pension – The Finance Department administers the collection and

payment of funds to the retirees.

HR – The Finance Department is responsible for administering employee

benefits and retirement plans.

Insurance – The Finance Department is responsible for overseeing insurance

and risk management.

Roles and Responsibilities of a Finance Department of Suzuki Abbottabad

Motors:

24
3.1.2 Bookkeeping:
This is the most basic function of Suzuki Abbottabad Motors finance
department. It involves the day-to-day recording, analysis and interpretation of
a company’s financial transactions. This will include the tracking of all
expenses (purchases, payments etc.) and sales of finished products. In some
startup companies, this role is often carried out by a bookkeeper who might be
replaced by more specialized payables and receivables clerks as the company
grows or expands its operations.

3.1.3 Management of company’s cash flow:

It is the duty of the Suzuki Abbottabad Motors finance department to manage
all cash flows into and out of a company and ensure that there are enough
funds available to meet the day-to-day running of the company.  This area also
encompasses the credit and collections policies for the company’s customers,
to ensure that vendors and creditors are paid correctly and on time; and that
the company is also paid correctly and as when due.

3.1.4 Management of Taxes:

Running a company involves paying tax, and it is the duty of the finance
department to handle tax issues. This includes creating good corporate
relationships with government by remitting PAYE (Pay as You Earn) to the
relevant authority, and ensuring that implementation of tax matters is done
within the framed policies.

The Finance department shall Manage all Finance activities of the company
except adjudication and award of contracts;

Support the functioning of the Finance committee

Implement the decisions of the Finance committee

Check and payment Vouchers of company clients

Prepare Payment documents

Prepare purchase vouchers and any other contract document

25
3.1.5 Bankers:
Bank Alfalah Ltd.

Bank Al Habib Ltd.

United Bank Ltd.

Habib Bank Ltd.

Askari Bank Ltd.

Allied Bank Ltd.

Dubai Islamic Bank Ltd

Citibank N.A.

Faysal Bank Ltd.

Habib Bank Ltd.

Habib Metropolitan Bank Limited

MCB Bank Ltd.

National Bank of Pakistan

Standard Chartered Bank (Pakistan) Ltd.

Summit Bank Ltd.

The Bank of Punjab

Suzuki Abbottabad Motors deal with banks through Invoices every invoice of
Suzuki Abbottabad Motors will be clear from bank.

3.1.6 General Sales Tax:

A sales tax is a consumption tax imposed by the government on the sale
of goods and services. A conventional sales tax is levied at the point of sale,
collected by the retailer, and passed on to the government. A business is liable
for sales taxes in a given jurisdiction if it has a nexus there, which can be a
brick-and-mortar location, an employee, an affiliate, or some other presence,

26
depending on the laws in that jurisdiction. Suzuki Abbottabad Motor Pay 17%
General Sales Tax to the KPRA (Khyber Pakhtunkhwa Revenue Authority)

3.1.7 Business Accounts:

Suzuki Abbottabad Motors have their Business Bank Accounts in the
Following banks:

Habib Bank Limited

Al Falah Bank Limited

United Bank Limited

Accounting Software:

Suzuki Abbottabad motors Use QuickBooks online to record the financial

Transaction:

3.1.8 Payment & Receipt Vouchers:

There are different types of payments and receipts vouchers that used in
Suzuki Abbottabad Motors for daily transactions are as follow.

Cash Payment Vouchers (CPV)

Cash Receipt Vouchers (CRV)

Bank Payment Vouchers (BPV)

Bank Receipt Vouchers (BPV)

Journal Vouchers (JV)

3.1.9 Cash Payment Vouchers (CPV):

In Suzuki Abbottabad Motors Cash Payment voucher is used to account all the
payments made by the company by way of Cash. Suzuki Abbottabad Motors
use Cash Payment Voucher as proof that a monetary transaction has occurred
between two parties. In Suzuki Abbottabad Motors, a payment voucher can be
used for a variety of purposes, sometimes taking the place of cash in a
transaction, acting as a receipt, or indicating that an invoice has been approved

27
for payment. In Suzuki Abbottabad Motors the receipts of Payments are
attached with the Cash Payment Voucher as the reference of the transaction.

This Cash Payment Voucher is generated through quick book online

accounting software and the reference will be attached with it manually before
filing. Cash Payment Voucher include the Payments that is made inside or for
the outside of Suzuki Abbottabad Motors also a petty expense is recorded in
Cash Payment Voucher this voucher is also known as Debit Voucher.

3.2.0 Cash Receipt Voucher (CRV):

A receipt voucher is a type of voucher which is typically issued by a certain
business or an organization upon receiving payment in cash or check during a
business transaction.

In some cases, a receipt voucher is used as an alternative of printable receipts.

Typically, a receipt voucher includes the names of goods and/or services, total
amount, date, and signature of the issuer and recipient.
Like printable invoice and receipts, a receipt voucher can be used as a
reference in auditing. It represents receipt of cash in hand.

In Suzuki Abbottabad Motors the Cash Receipt Voucher (CRV) is used when
receiving any kind of cash. The receipt of the cash also attached with Cash
Receipt Voucher (CRV) as the reference of the transaction this Voucher is also
known as credit voucher.

28
3.2.1 Bank Payment Voucher:

In Suzuki Abbottabad Motors bank Payment Voucher (BPV) is used to record

the transaction that is transfer through bank account. This voucher does not
include the cash transaction while record the transaction. Accounts and

29
Finance department of Suzuki Abbottabad motors attach the supporting
documents with Bank Payment Voucher (BPV) as a reference for future use.
The payment of Suzuki Abbottabad Motors by the way of cash is recorded in
this voucher

3.2.2 Bank Receipt Voucher:

Receipt voucher is used to record bank receipt. Bank receipt voucher indicates
receipt of cheque or demand draft. In Suzuki Abbottabad Motors This
Voucher is used the customer pay their liabilities through bank to the Suzuki
Abbottabad Motors bank account.

Finance Department of Suzuki Abbottabad Motors create the Bank receipt

Voucher when the cash is deposited the Suzuki Abbottabad Motors Business
Account. This voucher does not include the amount that is receive in the form
of cash.

3.2.3 Journal Voucher (JV):

Suzuki Abbottabad Motors Journal Voucher include the transactions that do
not involve the movement of cash. Journal Voucher (JV) is an accounting term
that describes a transaction used for recording financial activity. A journal
voucher is an integral part of the audit trail, and carries

(1) a serial number

(2) transaction date

(3) transaction amount

30
(4) ledger account(s) affected

(5) reference(s) to documentary evidence (such as invoices or receipts)

supporting the entry

(6) brief description of the transaction

(7) signature(s) or initials of one or more authorized signatories. A journal is,

in effect, a collection of financial data culled from journal vouchers.

3.2.4 Analysis of Financial Statements

Financial statements analysis is the principal mean of reporting the financial
condition and result of the operations of an organization, or it can be said that
financial analysis is carried out for the purpose of identifying the financial
strength and weakness of an organization by properly establishing items. This
analysis helps various parties in decision making who are interested in the
activities of business. To improve the quality of decision outsiders making
proper analysis of these statements helps a lot. The firm itself and the
statement analysis. The type of analysis varies according to the specific
interest of the party involved.

For example, trade creditor (supplier’s owned money for goods and services)
is primarily interest in the liquidity of a firm. Their claims are short term and
the ability of the firm to pay this quickly in best judge by an analysis of the

31
firm’s liquidity. The claims of bond holders, on the other hand, are long term.
Accordingly. Bond holders are most interested in the cash flow of the firm to
service debt over a long period of time. Investors in a company common stock
are principally with present and expected future of the firm to pay dividend
and avoid bankruptcy.

Management also employs financial analysis for the purpose of internal

control and to better provide what capital suppliers seek in financial condition
and performance from the firm.

Similarly, government’s agencies analyze financial data for tax purposes.

Three and three broad categories of the statement analysis:

1. Vertical analysis

2. Horizontal analysis

3. Ratio analysis

32
 BALANCE SHEET OF SUZUKI MOTORS

Table 3.2.4 Rupees in ‘000’

Assets 2021 2020 2019 2018 2017

Fixed assets 15,786 8,985 6,745 4,594 4,996
Long-term investments 329 208 - 0 0
Long-term loans 4 2 231 10 10
Long-term deposits, 456 382 29 25 23
prepayments and other
receivables
Long-term investment sales 118 145 96 114 162
receivables
Deferred taxation 1,152 237 234 195 56
Stores, spares and loose tools 147 115 111 99 82
stock-in-trade 29,397 23,946 16,289 13,082 14,977
Trade debts 238 211 1,205 1,562 1,352
Current portion of long-term 551 321 291 348 388
installment sales receivables
Loans and advances 41 37 201 198 515
Trade deposits and short-term 1,357 966 77 71 53
prepayments
Accrued profit on bank deposits 269 29 121 193 16
Other receivables 0 93 129 87 134
Sales tax and excise duty 4,370 1,144 1,651 278 1,002
adjustable
Taxation-net 5,798 4,900 1,894 1,590 2,747
Cash and bank balances 1,515 9,189 8,548 15,006 1,841
Total Assets 61,510 50,910 37,825 37,452 28,354
Share capital 823 823 823 823 823
Reserves 28,410 28,727 25,394 23,856 18,414
Total equity 29,233 29,550 26,217 24,679 19,237
Trade and other payables 14,410 11,377 6,300 6,442 4,945
Advances 2,276 5,332 1,625 4,226 2,159
Accrued mark-up 0 0 0 0 9
Short-term finance 1,1310 0 0 0 0
Security deposits 4,222 4,601 3,674 2,069 1,918
Unclaimed dividend 22 14

Provision for custom duty and 36 36 36 36 86

sales tax
Total equity and liabilities 61,510 50,910 37,852 37,452 28,354

33
3.2.5 Vertical Analysis
Vertical analysis compares each amount with a base amount selected from
same year. Simply, we compare the items of the Suzuki motors Atd balance
sheet or from income statement vertically by taking one item as 100%. When
using vertical analysis, the analyst calculates each item on a single financial
statement as a percentage of a total. This approach to financial statement
analysis, also known as component percentages, produces common size
financial statements. Common size the Suzuki motors Atd balance sheet can
be more easily compared, whether across the years for a single company or
across different companies.

Vertical analysis is a technique for identifying relationship between items in

the same financial statements by expressing all amount as the percentages of
the total amount taken as 100. In Suzuki motors Atd balance sheet for
example, cash and other assets are shown as a percentage of the total assets
and in an income statement, each expense is shown as percentage of the sales
revenue.

In vertical analysis, various components of the financial statements are

standardized by expressing them as a percentage of some bases.

34
 Vertical Analysis of Suzuki Atd Motors

Table 3.2.5 Rupees in ‘000’

Assets 2021 2020 2019 2018 2017

Fixed assets 25.6% 17.6% 17.8% 12.3% 17.6%
Long-term investments 0.5% 0.4% 0.0% 0.0% 0.0%
Long-term loans 0.0% 0.0% 0.6% 0.0% 0.0%
Long-term deposits, prepayments 0.9% 0.8% 0.1% 0.1% 0.1%
and other receivables
Long-term investment sales 0.2% 0.3% 0.3% 0.3% 0.6%
receivables
Deferred taxation 1.9% 0.5% 0.6% 0.5% 0.2%
Stores, spares and loose tools 0.2% 0.2% 0.3% 0.3% 0.3%
stock-in-trade 47.8% 47.0% 43.0% 34.9% 52.8%
Trade debts 0.4% 0.4% 3.2% 4.2% 4.8%
Current portion of long-term 0.9% 0.6% 0.8% 0.9% 1.4%
installment sales receivables
Loans and advances 0.1% 0.1% 0.5% 0.5% 1.8%
Trade deposits and short-term 2.2% 1.9% 0.2% 0.2% 0.2%
prepayments
Accrued profit on bank deposits 0.0% 0.1% 0.3% 0.5% 0.1%
Other receivables 0.3% 0.2% 0.3% 0.2% 0.56%
Short-term investment 0.0% 0.0% 0.0% 0.0% 0.0%
Sales tax and excise duty 7.1% 22% 4.4% 0.7% 3.5%
adjustable
Taxation-net 9.4% 9.6% 5.0% 4.2% 9.7%
Cash and bank balances 2.5% 18.1% 22.6% 40.1% 6.5%
Total assets 100% 100% 100% 100% 100%
Share capital 1.3% 1.6% 2.2% 2.2% 2.9%
Reserves 46.2% 56.4% 67.1% 63.7% 64.9%
Total equity 47.5% 58.0% 69.3% 65.9% 67.8%
Trade and other payables 23.4% 22.3% 16.6% 17.2% 17.4%
Advances 3.7% 10.5% 4.3% 11.3% 7.6%
Accrued mark-up 0.0% 0.0% 0.0% 0.0% 0.0%
Short-term finance 18.4% 0.0% 0.0% 0.0% 0.0%
Security deposits 6.9% 9.0% 9.7% 5.5% 6.8%
Unclaimed dividend 0.04% 0.03% 0.0% 0.0% 0.0%
Provision for custom duty and 0.1% 0.1% 0.1% 0.1% 0.3%
sales tax
Total equity and liabilities 100% 100% 100% 100% 100%

35
3.2.6 Horizontal Analysis
This technique is also known as comparative analysis. Horizontal analysis
compresses each amount for a selected year or we take each item of base year
as 100% and compare with other items. Thereafter, the number of similar
items or group of items in prior or subsequent financial statements are
expressed as percentage of the base year amount. The resulting figures are
called index number or trend ratios.

Formula = current year amount – base year amount/base year

amount*100.

Horizontal analysis compares each amount of the Suzuki Motors Atd balance
sheet for a selected year or we take base year as 100% and compare with other
items or simply we can say comparison of two or more years financial data is
known as horizontal analysis.

36
 Horizontal Analysis of Suzuki Atd Motors

Table 3.2.6 Rupees in ‘000’

Assets 2021 2020 2019 2018 2017

Fixed assets 75.5 33.2 46.8 (8.0) (1.6)
Long-term investments 58.2 - - - (100)
Long-term loans 100 (99.1) 2,210.0 - 66.7
Long-term deposits, 19.4 1,272.2 16.0 8.7 (37.8)
prepayments and other
receivables
Long-term investment sales (18.6) 51.0 (15.8) (29.6) (4.7)
receivables
Deferred taxation 386.1 1.3 20.0 248.2 (62.2)
Stores, spares and loose tools 27.8 3.6 12.1 20.7 24.2
stock-in-trade 22.8 47.0 24.5 (12.6) 39.6
Trade debts 12.8 (82.5) (22.9) 15.5 37.5
Current portion of long-term 71.3 10.3 (16.4) (10.3) 17.2
installment sales receivables
Loans and advances 10.8 (81.6) 1.5 (61.6) 25.0
Trade deposits and short-term 40.5 1,154.5 8.5 34.0 (15.9)
prepayments
Accrued profit on bank deposits 827.6 (76.0) (37.3) 1,106.3 23.1
Other receivables (100) (27.9) 48.3 (35.1) 17.5
Sales tax and excise duty 282.0 (30.7) 493.9 (72.3) 24.8
adjustable
Taxation-net 18.3 158.7 19.1 (42.1) (5.2)
Cash and bank balances (83.5) 7.5 (43.0) 715.5 (6.3)
Total assets 20.8 34.5 1.1 32.1 19.1
Share capital - - - - -
Reserves (1.1) 13.1 6.4 29.6 9.5
Total equity (1.1) 12.7 6.2 28.3 9.0
Trade and other payables 26.5 80.6 (2.2) 30.3 33.8
Advances (57.3) 228.1 (61.5) 95.7 243.2
Accrued mark-up - - - (100) -
Short-term finance 100 - - - -
Security deposits (8.2) 25.3 77.6 7.9 12.6
Unclaimed dividend 57.1

Provision for custom duty and - - - (58.1) (37.7)

sales tax
Total equity and liabilities 20.8 34.5 1.1 32.1 19.1

37
3.3.0 Financial Ratio Analysis
Ratio analysis is the most commonly used analysis to judge the financial
strength of a company.

It is a quantitative relation between two magnitudes of the same kind. In ratio

analysis, the financial ratio of the firm is compared to that of its competitors.
This comparison allows the firm to detach major operating differences. A lot
of entities like research houses. Investment bankers, financial institutions and
investor make use of this analysis to judge the financial strength of any
company. With the help of these we can also judge the management and its
capabilities, the decision adds more thing that are important for the firm’s
growth.

This analysis makes use of certain ratio to achieve the above-mentioned

purpose. If we go through the books and the whole financial management, we
find a lot of ratios that cover each and every aspect of the company, the main
categories are:

3.3.1 Short Term Liquidity Analysis:

Current ratio

Current ratio =Current Assets/Current liabilities

YEAR 2021 2020 2019 2018 2017

Current 1.90 2.38 3.25 2.93 3.11
Ratio

Interpretation:

Current ratio is a quick and general measure of liquidity of a firm. A relatively

high current ratio is an indication that the firm is liquid and has the ability to
pay its current obligations in time. Suzuki Motors in starting was good in
paying its short-term debt but now in 2021 it is not good in short-term paying
ability.

38
3.3.2 Quick Acid Test Ratio:
Acid-test ratio =Current assets – Inventory/Current liabilities

YEAR 2021 2020 2019 2018 2017

Quick acid 0.99 1.26 1.85 1.90 1.46
test ratio

Interpretation:

Acid test ratio is useful in measuring the liquidity position of the firm. It is
more liquid ratio than current ratio. Here the result of current ratio and Acid
test ratio is almost same because the reason is that Suzuki Motors has no
inventory. So, the result of both ratios is same.

3.3.3 Equity Ratio:

Equity Ratio = Total Assets/ Total Equity

YEAR 2021 2020 2019 2018 2017

Current 2.1 1.72 1.44 1.51 1.47
Ratio

Interpretation:

This ratio is used to measure the overall profitability and indicates the firm’s
capacity to face adverse economic conditions, higher the ratio better the
profitability. The ratio of Suzuki Motors increases from 2017 to 2021; this
thing indicates that Suzuki Motors is in position of profitability.

3.3.4 Profitability Analysis Ratio:

Net Profit Margin

Net profit margin = Net profit / Total income

39
YEAR 2021 2020 2019 2018 2017
NPM 10.17 12.13 15.37 15.35 29.92

Interpretation:

This ratio is used to measure the overall profitability and indicates the firm’s
capacity to face adverse economic conditions, higher the ratio better the
profitability. The ratio of Suzuki Motors decreases from 2017 to 2021; this
thing indicates that Suzuki Motors is not in position of profitability.

3.3.5 Return on Average Asset:

Return on average assets = Net operating income/ Total assets

YEAR 2021 2020 2019 2018 2017

ROA 0.9 0.53 0.75 0.80 1.77

Interpretation:

It is also called firms return on investment (ROI). It measures the overall

effectiveness of management in generating profit with its available assets.
Higher this ration better is company, but Suzuki Motors ROA show decreasing
trend expect from 2017. This show that Suzuki Motors is not in good in
profitability.

3.3.6 Return on Average Equity:

Return on average equity (ROE) = Net Income/ Average stockholder’s equity

YEAR 2021 2020 2019 2018 2017

ROE 6.56 8.51 11.18 10.89 23.33

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Interpretation:

It measures the overall effectiveness of management in generating profit with

its Shareholder’s equity. Shareholders of the bank may be interested in this
ratio as to check the firm’s effectiveness in using the capital provided by them.
This ratio measure both common and preferred shareholders. Higher this ratio,
more effective the firm is. Return on total asset ratio of Suzuki Motors shows
decreasing trend.

3.3.7 Long term Solvency Ratio:

Debt Ratio

Debt Ratio = Total Liabilities/Total Assets

YEAR 2021 2020 2019 2018 2017

Debt Ratio 0.52 0.41 0.30 0.34 0.32

Interpretation:

The debt ratio indicates the percentage of assets financed by creditors, and
how well creditors are protected in case of solvency. The higher this ratio, the
greater the amount of other people’s money being used to generate profit.
Here the debt ratio of Suzuki Motors is increasing from 2017 to 2021, so, this
thing is not better for Suzuki Motors, as higher the ratio, greater the firm’s
ineptness.

3.3.8 Debt to Equity Ratio:

Debt equity ratio =Total liabilities/Shareholders Equity

YEAR 2021 2020 2019 2018 2017

Debt to 2.23 0.72 0.44 0.51 0.47
Equity
ratio

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Interpretation:

It also tells that creditor are protected in case of insolvency. The lower the
ratio the better the company's debt position. Debt/Equity Ratio indicate the
outsider's portion of equity. The outsider's proportion in total equity is
increasing each year in previous 5 years because its proportion is so high.

3.3.9 Interest Rate Risk Management Ratios:

Asset Interest

Yield Interest Income/Average Assets x 100

YEAR 2021 2020 2019 2018 2017

Asset 9.2 8.79 10.62 9.59 9.04
Interest
ratio

Interpretation:

Asset Interest Yield gives us information about the average interest earned per
Rupee of asset deployed. Suzuki Motors has increasing trend till 2019 with
highest yield at 10.62 while it decreases in 2020 to 8.79. And then increase to
9.2 in 2021.

3.4.0 SWOT Analysis:

3.4.1 Strengths:
 Core competencies to serve the customers
 Unique resources (Advanced Equipment in service Department)
 Employee's skills, talents, and knowledge
 Data bank of customers
 DMIS and other advanced IT assets
 Strong organizational culture in which all employees have clear
understanding about their organization by which Managers can easily
convey to new employees the organization’s core competencies and
strengths.

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  High employee moral

 Customer loyalty

 No labor union

 Beautiful building and easily accessible located at G.T road

 Clear job description and specification of all employees

 Low Price Vehicles

 Easily available of spare parts.

3.4.2 Weaknesses:
 Organization does not have any research and development department
 Creativity is not encouraged so much
 Less stress on continuous improvement and innovation
 Inadequate system to train the employees
 Lack of research and development skills of managers
 Lack of corporate clients

3.4.3 Opportunities:
 Company is financially strong as indicated by financial ration analysis
and statements
 Expansion can be a better investment opportunity for owner
 Dealerships can be opened in different areas of city
 Reduced price of CNG may be an incentive in increased sale of
vehicles
 Strong and well managed corporate reputation
 Increasing Demand for Cars
 Efficient Eigengene
 Large Market size to operate
 Global spare part market

3.4.4 Threats:
 New and emerging markets for branded used and new vehicles
 Rising prices of petrol may cause reduced sale of vehicles
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  Threats of new entrants of any other dealership
 Delay in adoption of any technological change that makes existing
equipment potentially obsolete
 Increase in duties and taxes may cause the prices of vehicle increase
 Local Competitors like Toyota, and Honda
 Foreign Investment and setup production facilities
 Smuggling of Auto Parts
 Inflation rate
 Heavy Taxes
 Competition from import cars
 Increase of Fuel Prices

3.5.0 PEST ANALYSIS

Uncontrollable environment are those external factors which can prohibit us or
concrete hurdles between us and our business. It is also called pest analyses
which are as follow:

3.5.1 Political Environment:

Pakistan has to face lots of ups and down since its independence. So
many governments have been broken down by military authority and
most of the time marsh law applied on Pakistan. In this scenario no
entrepreneur was willing to invest in Pakistan except few. Due to this
market environment wasn’t so good in Pakistan. Anyhow Pakistani
government never been trustworthy for any investor.

3.5.2 Economic Environment:

Pakistan, an underdeveloped country, has suffered from decades of

internal political disputes and external ongoing conflict with India.
However, IMF approved the government policies, encourages by
different foreign assistance and renewed access to global market since
2001.By following these policies government succeed to reverse the
situation of economy during last five years.

3.5.3 Socio-Culture Environment:

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Pakistan has strong culture background and it has been followed in some
particular region of

Pakistan strictly. But with the passage of time, it is going to change. Thoughts
of people, choices, taste and style has been totally changed. If we talk about
the transportation source in Pakistan, People use pickups etc. for journey.
They also have their own as well for example cycle; bikes etc. and lots of
people are walker. But now the people who haven’t any source of
transportation they also want something for their convenience because they
want to save their time as much as they can. People want to use such vehicle
which looks beautiful and also affordable.

3.5.4 Technological Environment:

Technological factor also very important and we haven’t control on it.
Technology is grooming with the passage of time. People also want that the
product that they have is full of technology. We never control on technology
for example you launched the product last year and your sale volume on that
time is very high but after sometime due to latest invention a lot of substitutes
exist in market which effect on your business so you can’t hold on it.

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 CHAPTER 4
FINDINGS AND RECOMMENDATIONS

4.1 Findings:
Internship in Suzuki Abbottabad Motors gives me a great opportunity to learn
and for apply my theoretical knowledge that I gained form BBA. I have only 8
weeks to complete and gain the experience which is very short period of time
for know how about the all functions of the Suzuki Abbottabad Motors.

However, in eight weeks of my internship, I was work in finance department

and perform different types of tasks. The manager & staff members of the
branch taught me about the Financial Activities in Suzuki Abbottabad Motors.

At my first day in branch, the branch manager introduced me with all staff
members of branch and also with the person who is my supervisor, Mr.
Mohsin Khan (Assistant Finance Manager). He is very polite, kind full person
and gives me a lot of information about Suzuki Abbottabad Motors and its
functions. After the introduction I started my work properly.

 First of all, I know how to deal with customer, gives satisfactory

information about the Product that he turns to Suzuki Abbottabad
Motors and provide them services at our best. After that I also get
knowledge of recording the financial transaction manually, the
documentation which are required & other procedure of recording
transactions.
 As Suzuki Abbottabad Motors basic financial services which include
Cash deposit or Bank deposit, so in next step they teach me how to
collect money from customer & recorded it in ledger and provide the
deposit slip to the customer.
 Clearing is my third stage in seeking of the experience and in these
days of branch it becomes the important part of financial Activities of
Suzuki Abbottabad motors. I gained skill about the cheques that is
received by the customers on behalf of selling the products or services.
I also got knowledge that how to Make Demand Draft, Pay Order, and
Telegraphic transfer and pass entries of it in relevant register.

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 Proper books of accounts of the company have been maintained and all
the recording in the book of accounts is according to the rules of
accounting.

 Appropriate accounting policies have been consistently applied in the

preparation of financial statements and accounting estimates are based
on reasonable and prudent judgment
 As there are no International Standards, based on principles, by just
applying common sense and principles problems may have been
settled. There is huge lot of instructions which makes it hard to deviate
in case of an exigency.

 Proper accounting system is followed to record, classify, and

summarize accounting data and information which in result make it
possible for management to prepare financial statements in accordance
with standards thus the financial statements prepared by the
management of the Company present fairly its state of affairs, the
result of its operations’
 Employees of finance department do not have sufficient computer
skills to carry out the routing work of the finance department on
computer-based system which in turn reduces the overall efficiency of
the finance department of the company in particular and overall
organization in general.
 During the internship, I have observed that employees are not much
empowered to take many of the decisions. They have to take approval
from higher authorities for any kind of proceedings
 The company is not fully computerized yet and for this reason there are
few problems like slow reporting, less efficiency, etc. Latest financial
techniques and modules are not using in these departments
 The company is not providing any proper training to the staff of
finance department on new technologies and accounting and finance
related software programs to update their knowledge which also affects
the performance of the finance department.

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 At the End of my internship, I thankful to all staff member those who’s
help me to fulfil my internship specially Mr. Mohsin Khan (Assistant
Finance Manager) who is so corporative, he tried his best to give
knowledge in short time period.

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 CHAPTER 5
CONCLUSION AND RECOMMENDATIONS:

In the light of the findings, I have given some suggestion and recommendation
which are realistic and adoptable for the organization

5.1 Conclusion:
One of the most important aim of the student life is to express him/her
correctly and adequately. Now I have to express myself the basis of 8 weeks in
Suzuki Motors. I found internship training at the at the Abbottabad branch to
be a very rewarding experience. The training was very beneficial because it
has given me depth knowledge regarding the real-life working environment.

I observed Pak Suzuki Motor products renowned for their quality, durability,
safety, fuel economy, and resale value are appreciated by customers in
Pakistan. There has been high demand for Suzuki which is the market leader
in this segment. Pakistan is the highest producer of Suzuki in Asia.

The reasons that can be given to provide justification to our conclusion are as
follows: In present society and living way, the Brands not only represent the
symbol of the company or product but to a larger extent define the general life
of a person. What the person uses can reflect his taste of life, his status in the
society, his economic background and many other things. This makes a deep
connection between the company and its brand, with the consumer. In this
two-way relation both are dependent on each other for various different
reasons. Customers purchase the specific brand things just due to the brand
name. Customers believe that brand name is a symbol of quality. We came to
the conclusion that when consumer purchases a car, brand names influence his
choice.

Customers choose the well-known car brand. The brands of Suzuki which are
of real attention and attraction i.e., Honda and Toyota have great impact on the
psyche of the people. when customers go for purchasing a car, they prefer by
that creative perception. Honda & Toyota is less loyal to customer due to its

49
high cost, low reliability, low performance, and lack of 3S availability, high
cost of maintenance and Spare Parts and shape as compare to Toyota. Honda
City model 2005was highly drop down because the car shape was did not
appreciated in Pakistan moreover it was also failed in specific duration
because of side mirror of the car the reason was that the side mirror was
resisted by pillar of front quarter window which customer felt uncomfortable
when he/she viewed back side. These problems had been shifted from the
loyal brand. If a customers delighted by Suzuki, he/she does not want to try
Honda City car because they have no much information about it and vice
versa. We feel that the purpose of this study has been fulfilled to some extent.
The theory describes that brand name has a power, which attracts the
customers towards branded products. We founded that Suzuki attracts more
people.

5.2Recommendations
Here I am giving some recommendations, which is my view can add some
input for efficiency and better performance of Suzuki Abbottabad Motors.

These recommendations are as follows:

 Organized a separate "Training Departments " in the dealership

 Setup a Research and Development Department that will bring
innovation and creativity
 There must be a Call center in the dealership that will keep closer to
customers
 Dealership should develop a website that should be accessible 24/7 and
updated regularly
 Suzuki Abbottabad Motors has historical reputation in the market due
to the strong culture of customer service and satisfaction. This
reputation is an ease to enter in dig gerent segments
 Recording of any promotional event should be played on Cable
Network so that the customers who were unable to attend the event can
watch in their convenient times.

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  The designation of Customer Care Manager and the information
Technology coordinator holds the same person in the Suzuki
Abbottabad motors. It can create problem because managing the whole
IT infrastructure requires more time and effort but on the other hand
resolving the customer issues needs special skills. It would be difficult
for the same person to perform both responsibilities and organizational
goal may be suffered
 There is no proper set of cafeterias in the building of dealership. It
would be welfare for the employees if a well-organized cafeteria is
opened
 Preferences should be given in Human Resource concerns
 Promotion, reward system should be revised that will motivate loyalty
among the employees and eliminate the turn over and absents.

Section B

5.3 IMPLEMENTATION AND ACTION PLAN

5.3.1 Introduction

Every organization has its own strengths, weaknesses and possesses

opportunities for improvements. Nothing is impossible in this world, as
someone has already said, “an impossible is often untired”. Here are the
implementation / action plans for the recommendations concluded in the
previous chapter.

 Steps

Following are the implementation plans and actions for the recommendations
given that Suzuki motors can improve its overall performance by practically
implementing all these actions.

1. There is a need for creating satisfaction among employees. They do not

feel any attachment to the organization. There is a requirement for
building up their loyalties so that the organization can curtail the
dissatisfaction and turnover among employees.

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2. Job training is very important aspect the Suzuki Abbottabad motors
lacking in. New employees are recruited directly without any prior
training or just minimum orientation. The result is that they do not
understand the organizational structure and culture and become
frustrated in their start. This reduces their productivity and efficiency.
If a such programmed is started, then the new employees would feel
more comfortable and adopt easily to the environment.
3. The personnel should not be overstressed with workload. This
workload is of a destructive level. At the level of load the employees
lose all the comfort in their work and remain tensed and frustrated.
4. Management should distribute work equally among different
employees.
5. Related job should be assigned to the employees so that they can work
more efficiently.
6. The Suzuki Abbottabad motor need to develop its personal website.
7. It is suggested that that the employees signed jobs for specific period
and then they should shift to other department so that they gained
knowledge of other jobs.
8. The Suzuki Abbottabad Motors should become very specific about its
competitors, so that it can understand its competitors.
9. New marketing strategies should be developed to attract new
customers.

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 References:
Baig, E. (2017). Report on Pak Suzuki Motors Company Limited (PSMCL)

Aspects.Retrieved from https://www.slideshare.net/EssaBaig18/report-

on-pak-suzuki-motor-company-limited-psmcl-asspects

Charles H. Gibson (2008): “Financial Reporting & Analysis”, (9th Ed)

Gerald I. White, Aswinpaul C. Sondhi&Dov Fried, (2000), “The Analysis and

Use of Financial statement”, (3rd Edition) published by McGraw Hill

New York.

Charles H. Gibson (2000), Financial Statement Analysis. Fourth Edition,

USA, McGraw Hill, p.65

Fresco, B. (2021). Pak Suzuki Motors. Retrieved from

https://en.wikipedia.org/wiki/Pak_Suzuki_Motors

Talha, M. (2021). FINANCIAL STATEMENT ANALYSIS OF ATLAS

HONDA MOTORS, INDUS MOTORS AND PAK SUZUKI

MOTORS (EVIDENCE FROM PAKISTAN). Ilkogretim

Online, 20(4).

McLaney, E. (n.d.). In BUSINESS FINANCE: THEORY AND

PRACTICE.

PakWheels. (n.d.). Retrieved from https://www.pakwheels.com/

https://www.paksuzuki.com.pk./

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