1 CHAPTER -I1.1 INTRODUCTIONAshok Leyland (Hinduja !ou"# is an Indian automobile manufacturing companybased in Chennai, India. Founded in 1948, it is the 2nd largest commercial vehiclemanufacturer in India, 4th largest manufacturer of buses in the orld and 1!th largestmanufacturer of truc"s globally. #perating si$ plants, %sho" &eyland also ma"es spare partsandengines for industrial andmarineapplications.Itsells about!','''vehiclesandabout(,''' engines annually. It is the second largest commercial vehicle company in India in themedium and heavy commercial vehicle )*+,C-. segment ith a mar"et shareof 28/)2''(0'8.. 1ithpassengertransportationoptionsrangingfrom19seatersto8'seaters,%sho"&eyland is a mar"et leader in the bus segment. 2he company claims to carry more than !'million passengers a day, more people than the entire Indian rail netor". In the truc"s segment%sho" &eyland primarily concentrates on the 1! ton to 23 ton range of truc"s. ,oever %sho"&eyland has presence in the entire truc" range starting from (.3 tons to 49 tons. 1ith a 4ointventure ith 5issan *otors of 6apan the company made its presence in the &ight Commercial-ehicle )&C-. segment )7(.3 tons..1.1.1 $I%ION2he vision and mission statements of %hso" &eyland focus on becoming a leader in the commercial vehicle mar"et. 2hey focus offering the best product at the most reasonable price.1.1.&.'I%%ION Identifying ith the customer. 8eing loest cost manufacturer. 9lobal bench mar"ing our products, process and people.1.1.(. $ALUE% AND ETHIC%1e believe the softest pillo is a clear conscience. %t %sho" &eyland, our values shape our decisions. 2hey define our character, culture, and or" ethic. -alues are hat help us stay rooted and aspire to scale ne heights.HI%TOR) O* THE CO'PAN)2he origin of %sho" &eyland, a ,indu4a group company can be traced to the urge forself0reliance, felt by independent India. :andit 6aaharlal 5ehru, India;s first :rime *inisterpersuadeduity =hare2'' 1CC.'3 1CC'CC8C1( 1 1CC2''92'1'A>uity =hare2'' 1CC.'3 1CC'CC8C1( 1 1CC2''82''9A>uity =hare13' 1CC.'3 1CC'CC8C1( 1 1CC2''(2''8A>uity =hare13' 1CC.'3 1CC'CC8C1( 1 1CC2''!2''(A>uity =hare13' 1C2.41 1C2C8('C1( 1 1C2.42''32''!A>uity =hare13' 122.18 122138!((! 1 122.22''42''3A>uity =hare13' 118.93 11892942'' 1 118.92''C2''4A>uity =hare13' 118.9C 11892942' 1' 118.92''22''CA>uity =hare13' 118.9C 11892942' 1' 118.92''12''2A>uity =hare13' 118.9C 11892942' 1' 118.92'''2''1A>uity =hare13' 118.9C 11892942' 1' 118.911&.&. CO%T O* CAPITALCos4 o2 3a"i4al refers to the opportunity cost of ma"ing a specific investment. It is therate ofreturn that could have been earned by putting the same money into a different investment ithe>ual ris". 2hus, the cost of capital is the rate of return re>uired to persuade the investor toma"e a given investment.9enerally cost of capital includes cost of e>uity)e>uity share capital.,cost of preference capital,cost of debt)debentures. and etcKK.A. 3os4 o2 eBui4yIn financial theory, the return that stoc"holders re>uire for a company. 2he traditional formula for cost of e>uity )C#A. is the dividend capitaliIation modelB

% firm;s cost of e>uity represents the compensation that the mar"et demands in e$change for oning the asset and bearing the ris" of onership.0.CO%T O* PRE*ERENCE CAPITALCost of preference share capital is that part of cost of capital in hich e calculate the amounthichis payabletopreference shareholders intheformof dividend ithfi$edrate. Aven,dividendtopreferenceshareholder is onthedesireof boardof directors of company andpreference shareholder can no pressuriIe for paying dividend but it doesnEt mean thatcalculation of cost of pref. share capital is not necessary because, if e donEt pay the dividendto pref. shareholders, it ill affect on capability to receive funds from this source. Cos4 o2 "!e2. sha!e 3a"i4alFs 2o!5ula is 8iuidity. It can therefore determine if, andho>uic"ly, thecompanycanrepayits shortJtermdebt. %strongcashratiois useful tocreditors hen deciding ho much debt, if any, they ould be illing to e$tend to the as"ing23party.A9solu4e 3ash !a4ioN3ash !ese!uality service to derive the best of our products, day after day.43 4!C,%:2Auite good, especially if you areprepared to or" unsocial hours.2here are many opportunities out there for focused graduates, but be prepared to search forthem. Consider sectors you ouldn;t normally thin" of. 2here is often the possibility to moveacross functions ithin the industry as ell as the chance to develop e$pertise in a particularfield. #pportunities also e$ist to progress to a teamJleader role or a more general managerialposition.319raduates entering the manufacturing sector can e$pect to be spending some of their days infactories, building sites and industrial plants, hich may ell be hot, noisy and dirty. Gou illprobably be earing clothing for functionality not fashion. #pportunities for overseas travelmaybeavailablebecausemanymanufacturingcompanies runoverseas operations, eitherithin Aurope or further afield.2here is no doubt that the structure and siIe of the manufacturing sector is changing, as are theor"ingconditions0modernmanufacturingis, inthemain, hightech0andithafee$ceptions, very clean. #f course, the more highJtech a factory is, the feer people it is li"elytoneed.%ndthisisalaysaproblemformanufacturing0betterproductivityoftenmeansfeer4obs.=othesectorremains aproblematicareaof employment.8ut therearesuccessstories, and there are 4obs available, particularly for those graduates ith high levels of s"illsand professional >ualifications.Muali2i3a4ions and skills needed2arget your 4ob applications carefully. 2here are more graduates competing for feer 4obs andemployers ant to see a genuine enthusiasm for the 4ob and the company itself. =ho hoyour or" e$perience and studies have led you to choose manufacturing and demonstrate thes"ills you;ve got. 8e open minded and fle$ible about the 4obs you may be offered and herethey are located. 1or" e$perience is invaluable hen it comes to finding out hat 4obs areavailable in manufacturing, hat they involve on a dayJtoJday basis and hich ones you li"e ordisli"e. It can also open your eyes to ne opportunities. %ny relevant or" e$perience you canget to put on your C- ill be e$tremely useful, as long as you ma"e it relevant and use it tosho ho you have the competencies being as"ed for. 1or" e$perience isn;t alays that easyto organise as some manufacturing plants do shut don over the summer, limiting opportunitiesfor summer vacation placements.uired for many roles J engineering disciplines li"emanufacturing, production and process, and management related courses in >uality, strategy,purchasingandsupplychainandoperations. ,oever manufacturingcompanies elcomeapplications fromgraduates of all disciplines. 2hey all have commercial, mar"eting,purchasing, logistics, finance, ,< and I2 departments hich need s"illed employees.&anguages arenot alays aprere>uisitefor applying, as aillingness tolearnis oftensufficient. Amployers ill be loo"ing at your ability to organise and attention to detail. =ome4obs involve a lot of dataJcrunching so you must be comfortable or"ing ith numbers. I2literacyise$pectedandyoushouldbeabletocommunicateithpeopleat all levelsinaconfident manner, be able to prioritise tas"s effectively and "eep to budgets.