INTERNSHIP REPORT

ON
TOYOTA MULTAN MOTORS

Submitted By:
Zeeshan Majeed
Roll No. 324
M.Com (Finance)
Session 2018-2020

DEPARTMENT OF COMMERCE
BAHAUDDIN ZAKARIYA UNIVERSITY, MULTAN
 ABSTRACT

This report is about my internship that I have undergone my internship of 6 weeks at

TOYOTA MULTAN MOTORS from 11th March 2021 to 22nd April 2021 on regular

basis.

The objective of this report is to fully describe my internship program and sharing my

practical experience of Toyota Multan motors. Efforts have been made to compile this

report in such a way that the activities its silent features not only for students but also for

the lay man.

ii
 ACKNOWLEDGEMENT

All prays goes to Allah Almighty who has given me, courage and confidence to complete

this gigantic task. But with the noble passion of hard work, nothing remains difficult. To

write an acknowledgement, after the completion of an enormous task has always been

very enthusiastic for me because it’s the best source to thank all those whose support

enable me to complete this project. After thanking God I will thank to my parents &

family who prayed for me and without their support I might not be able to complete this

internship.

I want to thank for all those personalities, who have been a continuous source of guidance

during the report. I want to say thanks to all the employees of Toyota Motors. Their

attitude towards me was really very positive and appreciable. I want to acknowledge them

with thanks for their help and guidance on each and every step. I made many mistakes as

I had never been confronted with the business world but they never minded and instead of

minding they behaved like my brother. They treated me as their younger brother and

forgave all my inaccuracies. But In this regard, I particularly want to thank some

personalities who have been the continuous source of guidance throughout my internship.

They are

Sales Manager ---------------------Syed Gufran Raza

Internee supervisor-------------------- Jahanzaib Warraich

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 DEDICATED

Dedicated to my much loved Parents, who uplifted my spirits through their unconditional

love and guidance, my dearest teachers, who gave me strength and hope in every murky

corner of my life, and the unparalleled supervisor; without whose constant vigilance this

thesis would not have been possible.

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 DECLARATION

I solemnly declare that this research work is written by me in partial fulfillment

for the degree of M.Com program and have not submitted in any other university for
other degree.

Zeeshan Majeed
ROLL. NO. 324

v
 APPROVAL CERTIFICATE

This report "Toyota Multan Motors" by Zeeshan Majeed is accepted in its present form
by the Department of Commerce as satisfying the report requirement for the degree of
M.Com.

Supervisor

Chairman

External Examiner

vi
 TABLE OF CONTENTS

CHAPTER – 1 INTRODUCTION 01
History of Toyoda 01
Postwar growth 03
Customer relationship: 04
Services 05
PARTS, LUBRICANTS & CHEMICALS 06
VISION & MISSION 07
CHAPTER – 2 PRODUCTS & SERVICES 08
Sales 08
PRICE LIST (2015) 09
COMPLETELTY BULIT UNITS (SBUs) 10
CHAPTER – 3 MY LEARNING EXPERIENCE IN DIFFERENT
DEPARTMENTS OF COMPANY 11
SALES DEPARTMENT 11
CUSTOMER RELATION DEPARTMENT 13
SERVICE DEPARTMENT 14
LEASING DEPARTMENT 18
ACCOUNTS DEPARTMENT 21
CHAPTER – 4 FINANCIAL ANALYSIS 23
Ratio Analysis 23
COMMON SIZE ANALYSIS 34
Vertical Analysis 34
Horizontal analysis 36
SWOT Analysis 38
Strength 38
Weaknesses 39
Opportunities 39
Threats 40
CHAPTER – 5 CONCLUSION & RECOMMENDATIONS 41
Conclusion 41
Recommendations for Toyota Motors Multan 41
REFERENCE 42

vii
CHAPTER – 1 INTRODUCTION

History of Toyoda

Kiichiro toyoda:

(Toyoda kiichiro, June 1894-March 27, 1952) was a Japanese entrepreneur and the son of

Toyoda loom works founder Sakichi Toyoda. His decision to take Toyoda loom works

into automobile manufacturing would create what would eventually become Toyota

Motor Corporation. The largest automobile manufacturer in the world.

Career:

Kiichiro Toyoda made the decision for Toyoda Loom Works to branch into automobiles,

considered a risky business at the time. Shortly before Sakichi Toyoda died, he

encouraged his son to follow his dream and pursue automobile manufacturing — Kiichiro

created what eventually became Toyota Motor Corporation.

He resigned from the company in 1950 due to flagging sales and profitability, passing

away two years later. In 1957, his cousin and confidant Eiji Toyoda, became head

of Toyota Motor Corporation, overseeing its successful expansion worldwide and the

launch of Japan's most prominent luxury vehicle brand, Lexus.

1
The history of Toyota started in 1933 with the company being a division of Toyoda

Automatic Loom Works devoted to the production of automobiles under the direction of

the founder's son, Kiichiro Toyoda. Kiichiro Toyoda had traveled to Europe and the

United States in 1929 to investigate automobile production and had begun researching

gasoline-powered engines in 1930. Toyoda Automatic Loom Works was encouraged to

develop automobile production by the Japanese government, which needed domestic

vehicle production, due to the war with China.

Although the Toyota Group is best known today for its cars, it is still in

the textile business and still makes automatic looms, which are now computerized and

electric sewing machines which are available, worldwide.

Production of the Model AA passenger car started in 1936. 

Toyota History

Toyota Motor Co. was established as an independent and separate company in 1937.

Although the founding family's name was written in the Kanji (rendered as "Toyoda"),

the company name was changed to a similar word in katakana (rendered as "Toyota")

because the latter has 8 strokes which is regarded as a lucky number in East Asian

culture.

2
Postwar growth

After World War II, Japan experienced extreme economic difficulty. Commercial

passenger car production started in 1947 with the model SA. The company was on the

brink of bankruptcy by the end of 1949, but the company eventually obtained a loan from

a consortium of banks which stipulated an independent sales operation and elimination of

"excess manpower"

1957 Toyopet Crown

In June 1950, the company produced only 300 trucks and was on the verge of going out

of business. The management announced layoffs and wage reductions, and in response

the union went on a strike that lasted two months. The strike was resolved by an

agreement that included layoffs and pay reductions but also the resignation of the

president at the time, Kiichiro Toyoda. Toyoda was succeeded by Taizo Ishida, who was

the chief executive of the Toyoda Automatic Loom Company. The first few months of

the Korean War resulted in an order of over 5,000 vehicles from the US military, and the

company was revived. Ishida was credited for his focus on investment in equipment. One

example was the construction of the Motomachi Plant in 1959, which gave Toyota a

decisive lead over Nissan during the 1960s.

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In 1950, a separate sales company, Toyota Motor Sales Co., was established (which

lasted until July 1982). In April 1956, the Toyota dealer chain was established.

Global presence

Toyota began to expand in the 1960s with a new research and development facility, a

presence in Thailand was established, the 10 millionth model was produced, a Deming

Prize, and partnerships with Hino Motors and Daihatsu were also established. 

2008 - 2010

With high fuel prices and a weak US economy in mid 2008, Toyota reported a double-

digit decline in sales for the month of June. In January 2010, Toyota suspended sales of

eight recalled vehicle models to fix accelerator pedals with mechanical problems that

could cause them to become stuck. In December 2012, Toyota announced an agreement

worth more than US$1 billion to settle a lawsuit involving unintended acceleration in

some of its vehicles.

 
Customer relationship:

Customer First is Toyota’s cornerstone principle. Raising Customer Satisfaction is the

most important theme to be tackled as the basis of constant and stable growth. CR

activities are operational activities to prevent damaging Toyota’s image and win more

Toyota fans by checking the escalation of trouble through swift, accurate and sincere

handling of customers’ inquiries and complaints.

4
At IMC Customer Relations is focused on providing complete support to customers by

connecting with them, owning their problems & seeing them through to resolution in an

efficient & effective manner. We believe in our customers and keep them at the forefront

by engaging them through different channels. Four key elements to achieve this are:

 Opening a larger window for customers

 Swift and sure handling of inquiries and complaints

 Making the Voice of the Customer (VOC) the basis for corporate renewal

 Improving the corporate image and better informing customers to support sales

and service activities

Customer satisfaction is the ultimate objective and a strong coordination between all

customer touch-points is a key ingredient. Our Customer Assistance Centre works

tirelessly to provide complete support with the ultimate objective of gaining the approval

and endorsement of our patrons.

Services

We, at Toyota, are committed to provide the best-in-town after-sales experience to our

valuable customers. The relationship with our customers extends beyond the sale of

vehicle to make them customer for generations.

Our dealership network is staffed with highly-skilled technicians who have undergone

hours of training of Global Toyota Standards. Latest and exclusive diagnostic equipment

5
and special service tools support our technicians in providing best after-sales service to

ensure smooth Toyota drive experience.

PARTS, LUBRICANTS & CHEMICALS

Genuine parts actually save money over the life of your vehicle.

Unfortunately, fake auto parts have become serious problem in recent years. This doesn’t

hurt IMC –it hurts you, the person buying the parts, as well. So if somebody wants to sell

you what appears to be genuine parts that are well below market price, Beware! They

could be imitations. When you get parts from IMC’s authorized dealers you can always

be sure you are getting high quality.

By using the original products we are actually giving a favor to our self, by increasing the

life of our car.

The genuine products actually give an extra life to the car, and you can drive your car

without any hassle.

GENUINE PARTS LUBRICANTS CHEMICALS

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VISION & MISSION

Vision:

“To be the most respected and successful enterprise, delight customers with a wide range

of products and solutions in the automobile industry with the best people and best

technology.”

 The most respected.

 The most successful.

 Delighting customers.

 Wide range of products.

 The best people.

 The best technology.

Mission:

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new

technologies from the perspective of energy saving and diversifying energy sources.

Environment has been first and most important issue in priorities of Toyota and working

toward creating a prosperous society and clean world.

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CHAPTER – 2 PRODUCTS & SERVICES

Sales

Specialized Areas Our Targeted Objectives

Profitability Balanced with customer

Corporate Sales
Satisfaction

Leasing & Financing Maximum brand exposure

HD (duty free vehicles) Sales Image enhancement

Showroom Sales Technological leadership

Sales Administration Human resource skills

R & D, orientation Training  

Toyota Multan motor is taking pride in the fact that they are the premier automobile

organization in the capital. They provide the best 3S (Sales, Service, Spares) facilities.

Multan’s unique position as the capital of Pakistan provides them with an opportunity to

interact with diplomatic staff, multinational companies & a population that boasts the

highest literacy/education standards of the country. Adding to this factor is the highest

living standards of any city in the world.

Toyota Multan Motors (recognizes) these factors & concisely works towards achieving

our targeted objectives through manpower skills & technology keeping in mind our

specialized areas listed above. Their Sales & Marketing team has an average education in

business related areas of at least 14 years with the maximum of masters in business

administration leading up to 16 years of education. Toyota Multan motors constantly

polish these skills by arranging & attending seminars, workshops & training upgrades.

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Following are the different products with prices which are offered by the sales department

of Toyota Multan motors. Products are in two categories which are CKD or completely

knocked down mean the parts of the products are imported from abroad and assembled

here in Pakistan while other might be the CBU or completely build up units which are

completely built abroad and are shipped in Pakistan and sold after the payment of

government duties. These are the local products or we can call them CKD’s because their

parts are made in Japan and then they are assembled in Pakistan and after that sold

locally.

PRICE LIST (2017)

Withholding tax
TOYOTA COROLA Ex-Multan Colors offered color range
price Filter non filter

Solid:
1 XLI MT 1300CC 1299 CC 1,645,500 30,000 40,000 Solid

White &
2 GLI MT 1300CC 1299 CC 1,770,500 30,000 40,000 Solid & metallic
Attitude black

3 GLI MT 1300CC 1299 CC 1,845,500 30,000 40,000 Solid & metallic

4 ALTIS AT 1600CC 1598 CC 1,970,500 50,000 100,000 Solid & metallic

5 ALTIS MT 1800CC 1795 CC 2,045,500 75,000 150,000 Solid & metallic Metallic:

Super white,
6 ALTIS MT GRANDE SR 1795 CC 2,170,500 75,000 150,000 Solid & metallic
medium silver,
1800CC
gun metallic,

7 ALYIS CVT GRANDE 1795 CC 2,320,500 75,000 150,000 Solid & metallic strong blue,

ATSR 1800CC bronze mica,

Attitude black,
Flaxen mica

COMPLETELTY BULIT UNITS (SBUs)

9
VARIANT EX-Multan Variant EX- multan
price price

1 Prius hybrid 1798cc 4,522,800 13 Coaster fully loaded 26 2986cc 8,172,500

Seater f/l

2 Camry AT 2362cc 10,981,500 14 Coaster fully loaded 30 3661cc 8,272,500

seater f/l

3 TOYOTA AVANZA MT 1495cc 2,873,500 15 Land cruiser Prado vx AT 416 cc 19,444,000

UP(PETROL) turbo(diesel)

4 DAHITSU TERIOS 4*2 AT 1495cc 3,434,000 16 Land cruiser Prado tx MT 2986cc 13,987,500
(diesel)

5 DAHITSU TERIOS 4*4 (PETROL) 1495cc 3,434,000 17 Land cruiser hard top std 3956cc 11,535,000

6 HIAC COMMUTER STANDARD 3.0 L 3,454,000 18 Land cruiser hard top A/C 4.2 L 11,728,500
(DIESEL) clock

7 HIAC COMMUTER DUAL A.C 3.0L 3,877,500 19 Land cruiser top soft std 4.2 L 11,535,000
(DIESEL)

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CHAPTER – 3 MY LEARNING EXPERIENCE IN DIFFERENT

DEPARTMENTS OF COMPANY

DEPARTMENTS OF TOYOTA MULTAN MOTORS

1. Sales department

2. Customer relations department

3. Service department

4. Leasing department

5. Account department

 SALES DEPARTMENT

In Toyota Multan motors Bosan road Multan, where I am doing internship, in 1st week I

work in service department. Where I know and learn

Small business units (SBU’s):

Toyota Multan motors sales two types of units CKD and CBU.

1. CKD: completely knocked down

 These units (vehicles) are assembled within country (Pakistan).

 Maximum time period is 2 to 7 months (variant to the color because at

least 3 days are required to dry the color.

2. CBU: completely built unit:

 These units (vehicles) are import. Such as

a. Hilux from South Africa

b. Hiace/coaster from Japan and Thailand

c. Trios from Indonesia and

d. Camry etc.

 Maximum time period is 4 to 6 months.

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Requirements for the booking of vehicles:

1. CNIC copy (it should be eligible, clear and readable ad not expired)

2. Pay order or demand order to the name of Indus motor company. As an

Indus motor company A/C xyz (customer name)

Pay order or demand order should not less than 30 days.

3. If customer want to change the color of vehicle (car). It should inform to Toyota

Multan Motors 15 days before the delivery month. Such as

Delivery month is September. To change the color customer can inform to Toyota Multan

Motors on 15 of August.

Booking can be at

1. Partial payment (500,000).

2. Full payment (100%).

Withholding tax (sales tax) is payable on the sales of vehicle

 It is different for filler and non-filler

 Filler list download from FBR that is refresh after 15 days.

Audit

 Internal audit is conducted by INDUS MOTORS COMPANY and

 External auditor is hired by INDUS MOTORS COMPANY

Completely knocked down (CKD’s) procedures:

1. Car booking

2. Habib metropolitan bank deposit slip fill

3. Deposit to Habib Metropolitan Bank

4. Bank tells to Indus motors

5. Indus motors communicate to finance department

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 6. Finance department communicate to sale admin department

7. Sales admin communicate to production department

8. After the car assembled, it handover to logistic department

9. Logistic department deliver to Toyota motors (deliver department)

10. After some work vehicles is handover to the customer.

Supplier:

Indus Motors do not produce all the parts. It imports some kits such as

 Tire

 Engine

 Wires etc

Insurance of vehicles:

In Pakistan many car insurance companies are available but Toyota Multan motors

suggest their customer TDL insurance company which charge 3.99% for 1 year while

other companies charge 4% in market. Some companies also charge less than market rate

2.5%.

 CUSTOMER RELATION DEPARTMENT

In Toyota Multan Motors Bosan road Multan, where I am doing internship, in 2nd week I

work in customer relation department. Where I know and learn

Customer relation department maintain relation with customer and remain them for their

vehicle services put appointment sheets in the appointment board. They call to customer

for following

 Follow up calls for previous day vehicle serviced.

 Inquiries

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  Manual sheets call for vehicles services for 1000km, 5000km, 10.000km and

15000km.

 Deal to customer complaints

 Calls for update address for sending birthday cards and presence (service

discount cards).

 Reminding calls at the morning of the appointment day to remind the

customer to come up for vehicle service.

 Inform companies to the customer to the customer if any is there.

Key performance indicator (KPI) board:

Customer relation employees maintain record of the KPI,s on daily basis and pasted it on

the KPI board.

 FFS (first free service) per day

 Number of appointment per day

 PM (periodic maintained) per day

 Monthly report on KPI’s

Customer Relation Survey:

Customer officer surveys to the customers who came for their vehicle services to know

their view points about their services and dealership. They fill relation indicator (CRI)

survey reports.

 SERVICE DEPARTMENT

In Toyota Multan Motors Bosan road Multan, where I am doing internship, in third and

forth week I work in service department. Where I know and learn

Service division:

Service division is divided into two departments

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  Services: General repairing (workshop)

 Body and paints

Job assignment on floor to technician:

Steps:

1. Production

2. Control department (final inspection done by observer to confirm the problem

either it solve or not)

3. Confirmation by technical advisor and stamped it (quality based)

4. Give vehicle to advisor (advisor made bill and handed over it (vehicle and bill) to

the customer)

Mechanical parts:

A. Engine + engine overall

B. Tuning

Tuning parts:

 Plugs:

 Platinum plug (life is 10,000km)

 Normal/led plug (it consume more fuel and life is 10,000km)

 Air filter:

 Oily wet (life is 20,000km)

 Dry

 Fuel filter:

 Conditional (of mileage)

 Life is 40,000km

 Points: (life is 10,000km)

C. Break tuning

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Break parts:

 Disc pads:

 Manual transmission (life is more than 50,000km)

 Automatic transmission (life is 25,000km)

 *for corolla and Honda breaks are different

 *technician and parts life are also different.

 Leathers: (life is 100,000km)

D. Gear, gear box parts and gear oil

E. Suspension parts and suspension oil

 Suspension parts:

 Staring

 Tire (life is 40,000km or 2 year) (tire are made of rubber)

 Barings (it depend on the condition of barring)

 Good condition (life is 100,000km)

 Rush condition (life is 50,000km)

 Bushes (it depends on the condition, life is 50,000km)

 Link rods

 Shocks (it depends on the condition of the roads, if road condition is

very bad then life is 100,000km)

 Oil +oil filter (life is 5,000km)

 Cool end (40,000km)

 Automatic transmission fuel (ATF)

 Manual transmission fuel (MTF)

 Tinning pads:

 Chain:

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  Previous chains (life is 75,000km)

 Now chains are of steel (for lifetime)

F. AC service

G. Oil change (life is 5,000km)

H. Oil filter

I. Air filter

J. Vehicle electrical system such as

 Horn

 Lights

 Ac

 Battery

 Suspension service time is 4 to 5 hours

 Oil repairing time is 1 to 2 hours

 Technician spent 8 hours a day

 Efficiency = job save* job nature*hours

Packages:

Packages km’s Labor charges Services

corolla
core
Super light 5000km, 25000km, 1700 1300 Tuning
35000km, 115000km replacement
alignment
balancing
Light 10,000km, 20,000km, 3000 2000 General
30,000km, 50,000km, checkup:
70,000km, 90,000km, Electrical
100,000km sensors

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 Nut Bolt
Wheel
condition
Tire condition

Medium 20,000km, 60,000km, 3500 2500 Satisfying

100,000km items:
Breaks
Wheel
rotation etc
Heavy 40,000km, 80,000km, 5200 3000 Mechanical
120,000km and
functional
parts

 LEASING DEPARTMENT

In Toyota Multan Motors Bosan road Multan, where I am doing internship, in fifth week

I work in leasing department. Where I know and learn

Vehicles on lease:

 Leasing car’s ownership transfer at the end of the installment

 Time period: 1 to 5 years

 Not Indus and Toyota lease the vehicle. It is by the bank.

 Installment: up to 30,000

 Income of the person should be 3 times above on the

installment.

 Banks avoid to give vehicle on the lease to following person

 Policemen

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  Lawyer

 Showbiz

 Vehicle leased to the businessman, landlords, job holders.

Down payments:

 Landlords: 30%......40% in advance

 Others: 20%......25% in advance

 Imported cars:30% in advance

Imported cars:

 Banks lease running brands of imported cars such as

 Vitz

 Passo Alto

 Core

 EXIO 1500cc

 Banks does not lease cars of models more than 5 years.

 Criteria: installment + insurance + mark up

 Written agreement between customer and banks

 Bank signs 36 cheques from the customer at the time of agreement.

 Interest: fixed or variable

 Oversees Pakistani: not lease the vehicle by the banks.

 Age:

 20……..21 year up to 55 year

 For businessman car can leased up to 65 years

 Bank must have 25% to 30% share in lease.

Lease vehicle share in sale of Toyota Multan Motors:

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  30%.......35% of total sale of Toyota Multan

 40%.......45% of total sale of Toyota Lahore, Faisalabad

Banks that lease vehicle to the customer through Multan Motors:

 Habib bank limited

 Muslim commercial bank

 United bank limited

 Bank Al-falah

 Bank Al-falah Islamic

 Faisal bank

 Faisal bank Islamic

 Bank of Punjab

 Meezan bank

 Askari bank

Required documents:

 CNIC (valid, not expired)

 2 CNIC for reference with phone number

 Residential electric bills

 Last 6 month bank statement

 Salary certificate

 Employment certificate

 Service certificate

 Fard-e-Malkiat (issued by patwari)

 Registry (if shopkeeper)

INSURANCE: which are suggest by the Toyota

 Adam jee

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  Jubilee

 Al-falah insurance

 Pak Qatar insurance

 United insurance

 Askari insurance

 EFU

 Habib insurance

 ACCOUNTS DEPARTMENT

In Toyota Multan Motors Bosan road Multan, where I am doing internship, in sixth week

I work in Accounts department. Where I know and learn

Working of Toyota Multan Motors:

 Prepare cash receipt vouchers

 Prepare payroll summery

 Material receipt voucher (MRV) summery

 Deals petty cash: on average Toyota puts 60 to 70 lacs.

 Prepare bank summery voucher

 Prepare vouchers and pay expenses

 Prepare vouchers and pay taxes

 Deals with the employee’s salary

 Prepare financial statements

o Balance sheets

o Income statements

o Cash flow statements

 Prepare credit note voucher

 Prepare debit note voucher

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  Prepare job orders

 Pay for purchasing of workshop or any other material

 Prepare purchase voucher

 Maintain registers etc.

CHAPTER – 4 FINANCIAL ANALYSIS

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Ratio Analysis

 Liquidity Ratios

1. Accounts receivable turnover

2. Inventory turnover

3. Inventory turnover in days

4. Day’s sales in inventory

5. Day’s sales in receivables

6. Account receivables turnover in days

7. Operating cycle

8. Current ratio

9. Working capital

10. Acid-test ratio

1. Accounts Receivables Turnover.

Its efficiency or activity ratio that measures how many times a business can turn

its accounts receivable cash during a period.

Account receivables turnover = net sales

Average gross receivable

Toyota motors

Particulars 2017 2018 2019

Net sales 1,802,390,757.79 1,824,461,772.61 2,098,131,039.00

Avg. gross receivables 94,076,871.47 109,951,784.95 103,642,036.47

Ratio 19 times 17 times 20 times

Analysis.

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 The turnover of receivables varies between three years. In 2019 the receivables turnover

is highest as compare to other years, this would be a positive trend for Toyota motors.

2. Inventory turnover.

The inventory turnover is a measure of the number of times inventory is sold or used in a

time period such as a year.

Inventory turnover = cost of goods sold

Avg. inventory

Toyota Motors

Particulars 2017 2018 2019

C.G.S 1,728,673,028.88 1,753,693,760.59 2,014,205,797.00

Avg. inventory(stock in trade) 28,261,375.00 25602026.5 88389812

Times 61 68 22

times per year times per year Times per year

Analysis.

Inventory turnover is a measure of how efficiently a company can control its

merchandise, so it is important to have a high turn. In 2018 the inventory turnover is high

and it’s a positive trend for Toyota motors.

3. Inventory turnover in days;

Inventory turnover in days measures of the number of times inventory is sold or used

in a given time period such as days in a year (365).

Inventory turnover in days = average inventory

c.g.s/365

Toyota motors

24
 Particulars 2017 2018 2019

Average inventory 28,261,375.00 25602026.5 88389812

C.G.S/365 4736090.49 4804640.44 5518372.047

Days 6 days 5 days 16 days

Analysis.

The inventory turnover figure can be expressed in number of days instead of

times per year. In 2019 the inventory turnover in days is greater as compared with other

year and this represent unfavorable trend for Toyota motors.

4. Day’s sales in inventory.

Financial measures of a company’s performance that gives investors an idea of

how long it takes a company to turn its inventory, so less days is preferable for the

company.

Days sales in inventory = ending inventory

C.G.S/365

Toyota motors

Particulars 2017 2018 2019

Ending inventory 28,261,375.00 22,942,678.00 153,836,946.00

C.G.S/365 47,360,90.49 48,046,40.44 55,183,72.047

Days 59 days 7 days 28days

Analysis.

This formula divides the number of days in a year into the cost of goods sold

and then divides the resulting figure into ending inventory. The increase in number of

25
day’s sales in inventory from 7 days at the end of 2017 to 28 and 59 days at the end of

2018 and 2016 respectively, indicates a negative trend for Toyota motors.

5. Account receivables turnover in days.

Account receivables turnover in days means that in how many days the company

got cash from its receivables.

Account receivables turnover in days = avg. gross receivables

Net sales/365

Toyota motors

Particulars 2017 2018 2019

Avg. gross 94,076,871.47 109,951,784.95 103,642,036.47

receivables

Net sales/365 4938056.871 4998525.404 5748304.216

Days 19 days 22 days 18 days

Analysis.

The account receivables turnover in days is computed using the average gross

receivables. The computation for Toyota motors at the end of 2017 the days are decreased

as compared to other tow year and this is a positive trend for the company.

6. Day’s sales in receivables.

The number of day’s sales in receivables relates the amount of the account

receivables to the average daily sales on account for this computation, the accounts

receivables amount should include trade notes receivables.

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 Day’s sales in receivables = Gross receivables
Net sales/365

Toyota motors

Particulars 2017 2018 2019

Gross receivables 94,076,871.47 109,951,784.95 103,642,036.47

Net sales/365 4938056.871 4998525.404 5748304.216

Days 19 days 22 days 18 days

Analysis.

This formula divides the number of days in a year into the sales of account and

then divides the resulting figure into gross receivables. The decrease in day’s sales in

receivables from 22 days at the end of 2018 to 18 and 19 days at the end of 2019 and

2017 respectively, indicates an improvement in the control of receivables for Toyota

motors.

7. Operating cycle.

The operating cycle represents the period of time elapsing between the acquisition

of goods and the final cash realization resulting from sales and subsequent collections.

Operating cycle = (account receivables turnover in days) + (inventory turnover in days)

Toyota motors

Particulars 2017 2018 2019

A/R turnover in days 19 22 18

Inventory turnover in days 6 5 16

Days 25 days 27 days 34 days

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Analysis.

The operating cycle can be determined from the receivables liquidity figures and

the inventory liquidity figures. For Toyota motors in 2017 the turnover days are minimum

that’s a positive trend.

8. Current ratio;

Current ratio is a financial ratio that measures whether or nit a firm has enough

resources to pay its debts over the next 12 months. It compares firm’s current assets to its

current liabilities.

Current ratio = current assets

Current liabilities

TOYOTA MOTORS

Particulars 2017 2018 2019

Current assets 131,311,399.2 174,800,354.86 284,691,005.66

Current liabilities 67,92,8,286.65 138,450,160.89 218,483,784.90

Ratio 1.93 1.26 1.30

Analysis.

Currently, many firms are not successful in staying above a current ratio of 2.00.

This indicates a decline in the liquidity of many firms. It also indicates better control of

receivables and inventory. In case of Toyota motors in 2017 the current ratio is maximum

but less than 2.00 it indicates a better control on receivables and inventory.

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9. Acid-test ratio

The quick ratio is a measures of how well a company can meet its short-term

financial liabilities with liquid current assets.

Acid-test ratio = current assets – inventory

Current liabilities

TOYOTA MOTORS

PARTICULARS 2017 2018 2019

CURRENT ASSETS 131,311,399.27 174,800,354.86 284,691,005.66

INVENTORIES(STOKE IN (2,081,999.72) (20,431,587.62) (9,932,537.10)

TRADE)

CURRENT LIABILITIES 67,928,286.65 138,450,160.89 218,483,784.90

RATIO 1.930 1.11 1.32

Analysis.

The acid test (or quick) ratio relates the most liquid assets to current liabilities. In

case of Toyota motors the quick ratio in 2017 was maximum this shows a favorable for

this firm.

10. Net working capital.

Improved by increasing current assets (increase turnaround on accounts

receivable), decrease current liabilities (reduce short term debt), increase net income to

improve cash flow.

WORKING CAPITAL= CURRENT ASSETS - CURRENT LIABILITIES

TOYOTA MOTORS

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 particulars 2017 2018 2019

Current assets 131,311,399.27 174,800,354.86 284,691,005.66

Current (67,928,286.65) (138,450,160.89) (218,483,784.90)

liabilities

Ratio 63383112.62 36350193.97 66207220.76

ANALYSIS.

The working capital of a business is an indication of the short-run of the

business. In 2018 the working capital is highest this indicates a positive trend for the

Toyota motors.

PROFITABILITY RATIOS

1. Return on assets(ROA)

2. Total assets turnover

3. Gross profit margin

4. Sales to fix assets

11. Return on Assets (ROA)

Return on assets measures the company ability to utilize its assets to create profits

by comparing profits with the assets that generate the profits.

RETURN ON ASSETS = net income before non-controlling interest of earnings

And nonrecurring items
Average total assets

 Average total assets = [(beginning total assets + ending total assets)]/2

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 Toyota motors

Particulars 2017 2018 2019

Net income 21,298,026.46 22,003,937.31 25,319,618.01

Average total assets 155,154,520.94 195787930.7 288939053.2

Return on assets 0.1372 * 100 0.1123 * 100 0.088 * 100

14 % 11% 9%

ANALYSIS.

In 2017 the return on assets of the firms is maximum its mean the Toyota motors

utilize its assets for maximum profits this was a positive trend for the firms. In 2019 the

return on assets turnover ratio is lowest as compare to other years this is unfavorable for

the firm.

12. Total Assets Turnover

The total asset turnover indicates the efficiency with which the uses its assets to

generate sales.

Total asset turnover = sales

Total asset

Toyota motors

Particulars 2017 2018 2019

Sales 1,802,390,757.79 1,824,461,772.61 2,098,131,039.00

Total assets 155,154,520.94 1,957,87,930.7 2,889,390,53.2

Total asset turnover 11.61% 9.34% 7.26%

Analysis.

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 The total asset turnover computation has refinements that relate to assets

(dominator) but not relate to net sales (numerator). In case of Toyota motors the total

assets turnover in 2018 and 2019 is smaller as compare to 2007. This decrease would be

considered to be immaterial.

13. Gross profit margin.

The gross profit margin measures the percentage of each sales dollar remaining

after the firm has paid for its goods.

Gross profit margin = Gross profit

Sales

Toyota motors

Particulars 2017 2018 2019

Gross profit 73,717,728.91 70,768,012.02 83,925,242.00

Sales 1,802,390,757.79 1,824,461,772.61 2,098,131,039.00

Gross profit 0.04089*100 = 0.0387*100 = 0.04000*100 =

margin 4.089% 3.88% 4.00%

ANALYSIS.

Gross profit margin analysis requires an income statement in multiple-

step format. Otherwise the gross profit margin must be computed. Which is the case

with Toyota motors the gross profit margin in 2017 and 2019 as compared to 2018 ad

this increment is favorable for this firm.

14. SALES TO FIXED ASSETS.

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 This ratio measures the firm’s ability to make productive use of its property, plant

and equipment by generating sales dollars. Since construction in progress does not

contribute to current sales, it should be excluded from net fixed assets.

Sales to fixed assets = net sales

Net fixed assets

Toyota motors

Particulars 2017 2018 2019

Net sales 1,802,390,757.79 1,824,461,772.61 2,098,131,039.00

Net fixed assets 23,843,121.67 42,732,053.65 59,193,372.94

Ratio 76 times per year 43 times per year 35 times per year

ANALYSIS.

Sales to fixed assets increased in 2017 and 2018 as compared to 2019. Sales

increases more than kept up with net fixed assets increases.

COMMON SIZE ANALYSIS

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Vertical Analysis.

Definition.

A method of financial statements analysis in which each entry for each three

major categories of accounts (assets, liabilities and equities) in a balance sheet is

represented as a proportion of the total account.

The main advantage of vertical analysis is that the balance sheets of business of all

size can easily be compared. It also makes it easy to see relative annual changes within

one business.

Vertical analysis = particular values *100

Base year value

Income statement

(Sales of each year as a base)

Particulars 2017 2018 2019

Sales 100% 100% 100%

(-) C.G.S (96%) (96%) (96%)

Gross profit 4.1% 4%% 4%

Total operating expenses 3% 2.7% 3%

Operating profit 1.08% 1.2% 1.2%

(+) Other income 0.09% 0.02% 0.024%

Net profit before tax 1.18% 1.21% 1.21%

(-) income tax liability for the year (0.019%) (0.01%) 0.015%

Net profit 1.16% 1.19% 1.19%

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Vertical Analysis.

Balance sheet

(Sales of each year as a base)

Particulars 2017 2018 2019

Property and assets

Operating fixed assets 15% 15% 17%

Capital work in process …… 11.4% ……

Sundry debtors 61% 45% 30%

Securities and refunds 2.33% 7.4% 3.7%

Advance to staff 2.10% 1.7% 1.34%

Stocks 18.2% 9.7% 45%

Cash & bank balances 1.34% 9% 2.9%

Total assets 100% 100% 100%

Capital & liabilities

Partner’s capital account 48% 32% 29%

Un-appropriated profit/loss 14% 9% 7.3%

Current liabilities

Sundry creditors 19% 12% 7.5%

Expenses payable 1.2% 1.99% 1.7%

Bank over draft 23% 45% 55%

income tax payable 0.27% 0.10% 0.093%

Total capital & liabilities 100% 100% 100%

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Horizontal analysis.

Definition.

A procedure in fundamental analysis in which an analyst compare ratios or line in

a company’s financial statement over a certain period of time.

The analyst will use his or her discretion when choosing a particular timeline;

however the decision is often based on the investing time horizon under consideration.

Horizontal analysis = particular items *100+100

Base year value

Income statement

(2007 as a base year)

Particulars 2017 2018 2019

Sales 100% 101.2% 116.40%

(-) C.G.S (100%) (101.44%) (117%)

Gross profit 100% 96% 114%

Total operating expenses 100% 91% 109%

Operating expenses 100% 110% 126%

(+) other income 100% 125% 30%

Net profit before tax 100% 103.3% 119%

(-) income tax liability for the year (100%) (72%) (90%)

Net profit 100% 104% 119%

Horizontal Analysis:

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 Balance Sheet

(2007 as a base a year)

Particulars 2017 2018 2019

Property & assets

Operating fixed assets 100% 246% 338%

Current assets

Sundry debtors 100% 217% 210%

Securities and refunds 100% 580% 450%

advance to staff 100% 225% 240%

Stocks 100% 181% 644%

Cash & bank balances 100% 1081% 577%

total assts 100% 252% 320%

Capital & liabilities

Partner’s capital account 100% 215% 248%

Un-appropriated profits/loss 100% 204% 101%

Current liabilities

Sundry creditors 100% 194% 187%

Expenses payable 100% 359% 415%

Bank over draft 100% 391% 613%

Income tax payable 100% 172% 190%

Total capital & liabilities 100% 252% 320%

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 SWOT Analysis

SWOT analysis is strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It involves

specifying the objective of the business venture or project and identifying the internal and

external factors that are favorable and unfavorable to achieve that objective. I will

examine the complete business structure of Toyota Multan motors in specific and Toyota

in general. Here is the complete SWOT analysis.

Strength
Toyota Corporation in general is multinational organization working in more than 170

countries worldwide which is one of its major strength to portray its strong organizational

image. Toyota is having high financial strength and growth rate as well. Toyota is

environmentally safe and having highly customized products which helps to create the

strong brand image of the company. Toyota is investing high budgets on the research and

development sector and is highly penetrating in key US, European and Chinese markets

while is now one of the leading car manufacturing company of the world.

On specific terms Toyota Multan motors is utilizing that strong brand image of Toyota

Company and gaining more and more trust of its customers. Customers are savvier in this

technologically advanced world and hence they have more confidence in Japanese

technology and products of Toyota weather they are as a whole came from Japan or

comes in parts and later assembled in Karachi. Toyota Multan motors having the key

advantage of its location in Multan. Toyota Multan motor is situated in Aabpara which is

a key business area regarding automobile industry due to its strategic location. They are

capturing customers from Multan as well as from Rawalpindi and other areas. They have

developed a long poll of loyal customers because they were the pioneer dealerships in

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Multan and on the other hand they are almost at the center if we observe Multan and

Rawalpindi altogether on the map. They are holding their loyal customers from

embassies, NGO’s, organizations, army and government officials and obviously

individual customer’s as well.

Weaknesses
In general Toyota vehicles are manufactured in Japan and US so when exported to

developed countries they are treated as foreign products while in developing countries

this became their strength. Disasters like earthquake etc had great impact on their

manufacturing due to their manufacturing in only one part of the world while on the other

hand competitors had located their manufacturing plants strategically in different part of

the world to gain more benefits. Hence competitors are affected less with the disasters.

While on the other hand on specific note Toyota Multan motors is also facing the same

problem. Honda or other competitors don’t have more issues with their manufacturing or

supply of vehicles while Toyota Multan motors face this problem and they also lose their

potential customers due to these issues. Their other weakness is to give less importance to

customers who are less interested to buy the products from them. They are not running

behind their customers and are not catching them. They might use better and diligent

marketing skills to capture those less potential customers as well.

Opportunities
Toyota in general in order to gain more value of customers have to made more and more

fuel efficient cars and this can be achieved with the help of hybrid gas-electric vehicles.

Similarly these vehicles should be environmentally more safer.

On the specific terms Toyota Multan motors have to complete its competitors with better

sales force and efficient marketing strategies. Sales force should be educated regarding

the product line of Toyota and should be equipped with knowledge in order to convince

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and motivate more and more customers toward their own products and in order to create

and portray more strong value of their products with respect to the prices that they charge.

Threats

Toyota in general has many threats. Some of them include saturation and increased

competition, intense marketing campaigns increasing competitive pressures. Similarly

shifts in exchange rates are affecting the cost of the vehicles as well as of the raw

materials. Rise of fuel prices are also affecting the sale of the vehicles in different

countries.

Toyota Multan motors is having many more threats in general including the competitors

having more unsafe and cheaper products to attract the customers and in turn Toyota is

losing its sales rapidly and fuel prices are also devastating the market of Toyota Multan

motors. People are more reluctant to buy because to higher fuel prices. Exchange rates

and import duties and taxes are also major threats. Government is enforcing more taxes

and in turn affecting the sale of the vehicles. Toyota is finding different ways to cut cost

without cutting the quality of their products in order to gain more value from their

customers.

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CHAPTER–5 CONCLUSION & RECOMMENDATIONS

Conclusion

Concluding the whole internship in Toyota Multan motors I have observed that sale of

products is obviously directly related with how well you market your products and the

skills. These skills come inside person only by one simple principle which is “learning by

doing”. One has to act in appropriate way in order to learn new and new skills and to keep

the mind accelerated and motivated for the increased sale of the vehicles. The main

function of Toyota Multan motors was to sale the vehicles but they were also deriving the

other needs for different other spare part and products. So they are exploiting their

opportunity which is to be learned.

Recommendations for Toyota Motors Multan

Following are few recommendations for Toyota Multan motors where I have spent my

TBMe during internship and learned a lot.

1. Toyota Multan motors should have separate sales person or sales personnel for the

people who just walk in the showroom in order to make them loyal and potential

customers in future.

2. Pays for the sales staff should be increased on the basis of sales as well as on

regular intervals so that employees have some hope and motivation to work

efficiently for the organization.

3. Sales force should emphasize more on individual customers as well in order to

increase sales as the sales force is more involved in the sale of products to

organizations, NGO’s and companies.

4. Problems and conflicts due to late delivery of vehicles should be solved in order to

satisfy the customers.

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 Reference

I have made this report with the help of my educational comprehension, my learnings

during internship and the data from following web sites.

http://toyotabwp.com/contact.html

http://toyotabwp.com/sale.html

http://toyotabwp.com/lps.html

http://toyotabwp.com/services.html

http://toyotabwp.com/parts.html

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