Nau Raj Project

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1

Chapter I :

INTRODUCION

1.1 Background

Before producing any 4 wheel vehicle, 2 wheeler vehicles had a very crucial role in the dayto day activities of human being. The history of the motorcycle -- this rumbling, snorting,centaur, half human, half iron -- is only a century old. It began just as soon as the bicycletook its modern form in 1885. Nicholaus Otto, who invented the Otto Cycle, had an assistant,Gottlieb Daimler. Daimler left Otto to develop his own engine. In 1885 he made a wooden

bike. He drove it with his engine instead of with a pedal arrangement. But there was a catch:Daimler's motorcycle had two small stabilizing wheels --like a kid's training bike. It wasactually a four-wheeled vehicle. Daimler soon went on to build early automobiles. He left itto bicycle builders to develop the two-wheeled motorcycle.

At recently also demand of 2 wheeler vehicle is almost high inthe market. Such 2 wheeler vehicle are cheapest in comparison to 4 wheeler vehicle but also

provide the better service and maximum satisfaction to the rider. In market there are different brand of 2 wheeler vehicle and one of them is Honda Company too. It's started in 1946 bySoichiro Honda who wanted to produce cheap transportation for the people after the SecondWorld War. Today Honda has become the largest motorcycle manufacturer in the world.Honda started by using old army engines but later developed their own 50cc engine. The firstreal Honda bike was produced in 1949 called the Model D (Dream) which was followed dueto the success of the ‘D’ by model J Benly. The Fireblade (also a CBR model) was a newchapter for Honda and motorcycle fans worldwide. The introduction of the CBR900RR (893cc) in 1992 was a huge improvement with what was then out on the market. This camelargely because of the engine capacity in a smaller light frame.

Honda Company has given an authorized distributor dealer in to thedifferent country. In the Nepal, Syakar company ltd have been an authorized distributor of Honda motor cycle since 1977. Today it is a leader and prominent innovator in the 2 wheeler industry. The proprietor of Syakar company ltd is rup jyoti and Padma Jyoti.Its head office is located in the jyoti bhawan, kantipath. But the showroom of Hondacompany is in the Buddha Bari complex, kumaripati and Kantipath. Syakar Company used tosell the brand of the Hero Honda and Honda in the same showroom but due to theinconvenient, Syakar Company makes its separate showroom for each brand in Buddha Bari,Kantipath and kumaripati. The products of Honda Company which are available in the Nepalare Dio, Activa, Unicorn and Shine. Not in the kathmandu it's Honda and Hero Honda branchare spread over in the different cities. There is total 27 branch i.e. Kantipath, Bhuddha BariCompelx, Teku, Putalisadak, Battisputali, Kupondole, Chabile, New Baneswor, Bhaktapur,Banepa, Hetauda, Biratnagar, Dharan, Lahan, Birtamod, Janakpur, Malangwa, Birgunj,

Butwal, BP chowk, Pokhara, Bhairawa, Nepalgunj, Chitwan, Naryanghat, Dhangadi, Dang.After the completion of safety riding facility, company achieved 4s i.e. sales, service sparesand safety. It is one of the main sources of boosting up an economic development of countryas its generating a large employment opportunity to the public.



2

Figure 1: Organization Chart

Generally structure of Syakar Company has classified into 4 departments. Each and everydepartment is interrelated and dependent with each other. They perform their task to achievetheir desired goal through the cooperation within the unit. Works are classified into differentdepartment as according to their position, skill and efficient. So that it facilitates thespecialization. Here we briefly discuss the function of each functional department. They areas follows.1. Credit and marketing department: Generally this department looks overall the credit and finance sales.2. Operation and sales department :

Under this department, it deals with the customer with the object of sellingits product.3. Parts Department :

Under this department, it looks overall the parts of product. Parts of productare available under this department.4. Inspection & Audit Department:

The function of this department is to inspect and audit the account of company in order to detect fraud and error.

Board of Director

GM Credit & MKT . GM Operation Parts DepartmentInspection & Audit

Manager

Chief Exe. Officer

Dy. Exe. Director

Front Linemanager

Front Line manager Front Line managerFront line manager

Clerical &Subordinate

Clerical &Subordinate

Clerical &Subordinate Clerical & Subordinate



3

1.2 Literature Review

Before developing of 2 wheeler vehicle, people used to travel the different places by their own foot which create very monotonous and exhausted. It used to take a long time for

performing a day to day activity. Now a day 2 Wheeler Industry is revolutionizing the way in which

we perform the work and live. It is helping in our day to day operating activities andchanging all aspect of our life and life style. World has been a changing into small globalvillage due to the development in the communication and transportation facility. Automobileis one of the greatest wonders of science. Next to man, it is the most important andrevolutionary creation in the world. It has practically revolutionized the world. It has broughtabout a stupendous change in industry also.

The demand of auto mobile is increasing so rapidly that it may degradesthe environment balance. The smoke from the automobile is creating environment imbalanceand global warming. It is making the earth an unworthy place for living by decreasing ozone.Recently global warming is giving a great challenge to the researcher and scientist. If we donot controlled and minimizing in using auto mobile then our future will be in dark anddigging our grave by ourselves.

However in Nepal, there is also a trend of increasing the automobile which is creating a environment pollution. This table illustrate that the growing of automobile in Nepal in each year.

Table-1 Annually Registration of Vehicle in Nepal

Annual

year

Car/Jeep/van Bus Minibus Truck Tempo Moto

r cycle

Tractor Micro

Bus

Other

2050/51 3049 1168

77 1740 154 8653 1396 0 372

2051/52 3043 850 83 1629 241 9401 1814 0 3532052/53 5261 486 82 1151 117 1385

52183 0 58

2053/54 2993 608 175 907 185 12633

1257 0 352

2054/55 4139 899 130 1291 344 12306

1265 0 51

2055/56 2507 872 19 978 388 17090

2248 0 37

2056/57 3647 494 122 829 789 19755

2542 0 102

2057/58 5152 1203

250 1271 232 29291

3519 0 77

2058/59 4374 868 475 1798 248 38522

3189 0 86

2059/60 2906 432 298 1212 17 29404

2485 232 624



42060/61 7079 732 237 1477 16 2654

72191 884 536

2061/62 4781 753 285 1385 48 31093

1374 584 228

2062/63 5114 1528

663 2263 60 45410

635 66 36

2063/64 5156 1564

806 3278 12 72568

2942 138 2201

Source: Naya Auto Nepal MagazineThe following Table illustrates the annual registration of different type of vehicle in Nepal.By seeing this data we can forecast that the there is trend of increasing in the vehicle which ismaking the environment pollution rapidly. Though we cannot imagine our life without theautomobile but also we can minimize it. In the replacement of automobile people should ridesuch a vehicle which is run by the battery so that there is a less chance of environmenthumiliation. Government should follow the traffic rules very strictly which helps inminimizing the accident.

1.3 Statement of Problem

Syakar Company is a profit organization so it is always concentrate in earning profit. Itdoesn't look the welfare to the society. The main problem of this company is that staffs areinsufficient. Customer should be in a cue for getting an inquiry from the staff. Worker shouldhave to work for a long duration. The staff should have to come even in the public holiday.Environment is being polluted due to the increasing trend in an automobile so it doesn't givethe attention towards the pollution control program.

1.4 Objectives of Study

Any kind of study has its own objective or purpose. Without objective nothing can be done.So one must know its clear cut objectives of study to get the fruitful result. This fieldwork report is the study of "Installment scheme policy of Syakar". So the main objective of thisfieldwork report is to analyze, examine and interpret the policies adopted by Syakar in theinstallment scheme policy.

• To analyze the sales growth rate of Honda company• To describe the Installment scheme policy of Honda company.• To identify the correlation between cash sales and finance sales.

1.4 Significance of Study

Firstly Report writing is very significant to the student. It helps to student to broaden themind studying directly without others proper guide. This project written on Honda Companyhelps to promote and develop the interests of 2 wheeler rider. It explores the detailinstallment scheme policy so the person who wants to purchase on the installment can easilygrab the information about it. It helps to get information about a different brand of motor

bike of Honda Company. In overall, it helps the Syakar Company itself to boost its sales

1.6 Limitations of Study



5All the activities are not a absolutes or a 100%. So there might be a certain limitationwhich we cannot eliminate therefore my study is also not free from limitation. This issimply a study of Syakar. Because of limited studying and analyzing data is difficult. Itslimitation can be pointed as follows.a. The report is depending in secondary data.

b. Collection of adequate data was not possible during limited time.c. Some data are depended upon oral speeches and information discussion.d. Syakar Company is a private ltd company so the some information was not supplied

by the company due to the secrecy.e. It is a big organization so it was difficult to visit in each branch for collecting the

information.f. In today's context, due to political instability, lots of strikes and lockout are taking

place. They created obstacle in visiting the organization frequently which causedobstacle in collecting data in time and the completion of the field work.

g. It is a new branch of Syakar Company so all the data are calculate on the monthly basis.

Chapter IIMethodology

To make the study systematic and to attain the goal of the present study, the investigator wasrequired to conduct his study through different methodologies. For writing a report reliabledata play a great significant role. So we have to collect the adequate data from related field

before writing the report collection of reliable data from related institutions make the reportviable. At first we have to fix the subject matter of report and then we should consult with therelated staff of related institution for collecting data, which is the methodology of datacollection. The main aspects of the methodology of data collection are:

1. Designing the project work 2. Developing the data plan and3. Selecting the samples

2.1 Research Design

The first step of study is collection of necessary information and data from related field thatis the collection from Syakar. The task will be fulfilled by the collection of secondary data,various published information and oral speeches. Data designing is an overall framework outline or plan for performing the study. In this study analytical research design will be usedfor clearing the situation on the basis of presented data and fact. The data are carefullystudied and analyzed systematically under specific major heading so as to meet the objectiveof the study. On the other head the accumulated data is explained analyzed systematically.Both exploratory and descriptive types of study were conducted in order to prepare this fieldreport. The process of preparing the field work has been represented through the given figure.

Fig1.1 Steps in Research Design

Selection of the organization

Identifying the objectives

Collecting the Information

Analyze and interpreting the information

Report Writing



6

Selection of the organization: I first thought of doing the fieldwork in Bank but my teacher suggests not doing in the bank because he said that it’s common topic and would not be a somuch effective. So I selected the organization, Syakar Company, for my field work. It took me an about 10 days for selecting the organization.

Identifying the objectives:A project must have defined specific objectives, it is focused on

end result so I listed out the objectives of my study in order to build up an all round beneficial to project after carefully weighing its various components. The objectives are predetermined in 15 days.

Collecting the information:Information refers to the any facts, data, table which play very

important role for making plans. Without information objectives cannot be fulfilled so rightand accuracy information must be collect in order to achieve a desired result. So I collected

the primary data as well as secondary data directly from the organization, magazine, website.

Analyzing and interpreting:Only collecting the information doesn't serve the purpose of

project. After collecting the information, I made a deep study and analyze it in the resourceutilization, time, cost and quality.

Report writing: This is the final stage. Under this, the report was edited printed and binded,

then I submitted the report in the organization and received recommendation letter fromSyakar Company. At last I submitted the report to the college.

2.2. Sources of Data

The data are collected both from the primary source and secondary sources.

Primary data:The data which are directly collected from the 1 st contact person and are original

in character are known as primary data. The company was visited timely to get different



7information about the organization. The data are collected personally through thequestionnaires, observation and interview.

Secondary data:Secondary data are such data which are already collected and obtained from

different source and are not original in character. Such data are collected from the secondarysources. For my field work I collected the secondary data from the articles, brochure,magazines, reports, booklets and websites.

2.3 Data Collection Method

Writing a report is necessary in BBS third year. For writing a report reliable data play a greatsignificant role. So we have to collect the adequate data from related field before writing thereport. Collection of reliable data from related institutions makes the report meaningful andtrust worthy. At first we have to fix the subject matter of report and then we should consultwith the related staff of related institution for collecting data, which is the methodology of data collection. The main aspects of the methodology of data collection are:


The primary data was collected by following different methods and procedure.

a) Interview Method: When I entered into the company I was confused to whom Ishould have to take interview, but later on different staffs cooperate with me in theinterview process. I took the separate interview of the manager of Syakar Company for 20 minutes and provide me a lot's of information about organization objectives and

policy.

b) Questionnaire Method:As we know that manager are always busy. They do not have

time engaging in other activity. So I made a number of pre questions before going to thecompany which is included in the appendix. The question are related with the facilitiesand service provided to the customer and sales of the company.

c) Informal discussion: At last I talked with the other staff and worker in order to knowthe situation and problem of organization.

2.4 Data Processing Technique

All data are collected through the different sources like primary data and secondary data.Only sorted and important data has been presented in the report. Simple comparative bar diagram, bar line diagram and multiple bar diagram are used to show the sales done by thecompany. Different method like questionnaire, interview and informal discussion are used tocollect the data and information which have been presented in a systematic way in this report.They are presented in attractive and understandable form as far as possible.



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2.5 Tools Used

Generally for the analysis of data presentation I used a Statistical tool. i.e. Karl Pearson'scoefficient of correlation. Correlation analysis enables us in determining the degree anddirection of relationship between two variations. The formula of Karl Pearson's is given below:

∑xyr =

∑x 2 ∑y 2

∑XX = n

∑YY = n

Interpretation of Correlation Coefficient:1. It lies always between +1 and -1.2. When r = +1, there is perfect positive correlation.3. When r = -1, there is perfect negative correlation.4. When r = 0, there is no correlation.5. When r lies between .7 to 0.999 (-.7 to -0.999), there is a high degree of positive (or

negative) correlation.6. When r lies between .5 to 0.699, there is a moderate degree of correlation.7. When r is less than 0.5, there is low degree of correlation.



9

Chapter IIIPresentation and Analysis of Data

3.1. Presentation of Data

Installment Scheme policy provided by the Syakar Company:There are different systems of

buying or selling goods or assets. Cash sales and credit sales are the most popular system andothers are hire purchase system and installment system. Under installments system the goodsor assets are delivered to a person who agrees to pay the purchase price of goods in a number of periodical installment. Under this system, buyer pays the price in installments i.e.Monthly, Half-yearly and Annually etc. and the ownership is transferred only after the

payment of last installment.

In the word of Pickles-" It is the system under which the property is acquired by paymentsmade in installments, during the period of which the title in the property remains with theHire-vendor. The payments prior to the final are regarded as being purely in respect of hire,and the title of the property to the hire-purchaser until such final payment or some other consideration provided for in the contract has been fulfilled."

Syakar Company is providing different service to their customers. One of the good services

for their customer is selling the motorbike in the installment basis. From this, customer willnot be in a burden for paying full amount at a same time. Besides the customer, from such a

policy it also helps to increase sales of company. Different terms and policies are adopted bythe company in the installment process. The following documents should make a available tothe company and fill up such form by the customer if he wants to purchase in the installment.

Syakar Company Ltd

ls:tfaGbLsf] nflu cfjZos sfuhftx?C[0fL hdfgL

!_ gful/stfsf] kmf]6f]skL ! yfg !_ gful/stfsf]kmf]6f]skL ! yfg@_ kmf]6f] @ k|lt @_ kmf]6f] @

k|lt#_ cfof>f]t v'Ng] sfuhft÷kq #_ cfof>f]t

v'Ng] sfuhft÷kq$_ wf/f÷lah'nLsf] /;Lbsf] kmf]6f]skL $_

wf/f÷lah'nLsf] /;Lbsf] kmf]6f]skL%_ ;jf/L rfns cg'dtL kqsf] kmf]6f]skL

Model …………………..Price Rs. …………………..D/P Rs. …………………..Service c. …………………...Reg c. …………………...

Insurace …………………...Total Rs. …………………...



10

While purchasing in the installment then s/he should have to pay certain interest rate during ayear. Such interest rate is influenced by the number of the installment period and the firstdown payment. If the no. of installment period and down payment is minimum then theinterest rate is also low, similarly if the no. of installment period and down payment ismaximum then the interest rate is also maximum. So there is directly proportionalrelationship between interest rate, no. of installment period and down payment.

Table- 2Sales of Monthly Installment

Month Sales Increment over per month

% IncrementsOver P.M

Oct.2007 30 -

Nov.2007 35 5 16.66

Dec.2007 24 -11 -31.43

Jan.2008 24 0 Balance

Feb.2008 28 4 16.67

Mar.2008 25 -3 -10.71



11

Source: sales report of Syakar Company (Buddha Bhari Complex)

Above table shows the trend of sales in the period of six month from October to March. Thetable shows that in November2007 the increment over previous month, which is 16.66%, it ismaximum increment of company. But in the year December 2007, through the sales wasdecreased by 31.43%, which decline very highly. But in the month of January2008, the salesneither increase nor decrease. It remains in constant. In the month of February 2008 salesagain increase by 16.67%. By the way in the month of March2008 the sales were againdecreased by 10.71%. It is satisfactory increment of the company. Analyzing this trend wecan clearly say that the sale in current year is very much fluctuating.



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Fig2. Sales of Syakar Company in installment basis

Table-3Monthly Cash Sales

Source: sales report of Syakar Company (Buddha Bhari Complex)

Following table shows the monthly cash sales report of Syakar Company in Buddha Baricomplex. It's a 1 st branch of Syakar Company of Honda product, just started in October2007.In the opening month its sales is so maximum i.e. 220. In the month of November2007, saleswere decline to 115. Similarly, in the month of December 2007 its sales raise upto170. InJanuary 2008, 145 bikes are sales which were decrease by 25 then the previous month. InFebruary 2008, 95 bikes were only sold. By the way in the month of March2008 the saleswere again raise up to 160.

Month Sales Increment over per month

Oct.2007 220 -

Nov.2007 115 -5

Dec.2007 170 55

Jan.2008 145 -25

Feb.2008 95 -50

Mar.2008 160 30

3035

24 24

28

25

05

-11

24

4

-3

-20

-10

0

10

20

30

40

Oct Nov Dec Jan Feb March

MonthsalesIncreament over per month



13

Fig3. Cash Sales of Syakar Company

Table-4Monthly Total Sales

Source: sales report of Syakar Company (Buddha Bhari Complex )

The following table shows the total sales of Syakar Company in a Buddha Bari Complex.Total sales includes cash sales and finance sales. Its maximum sales is in the October 2007when the time of establishment. Their minimum sale is123 in the month of February 2008.Similarly sales in the other month of November 2007, December 2007, January 2008, March2008 are 150, 194, 169, and 123 respectively. This table explores that the total sales trend isvery much fluctuating.

Months Cash Sales Finance Sales Total Sales

Oct.2007 220 30 250 Nov.2007 115 35 150

Dec.2007 170 24 194

Jan.2008 145 24 169

Feb.2008 95 28 123

Mar.2008 160 25 185

220

115

170145

95

160

0 -5

55

-25-50

30

-80-60

-40-20

020406080

100120140160180200220240

Oct Nov Dec Jan Feb March

Months

salesIncreament over per month



14

Figure: 4Multiple bar Diagram of TotaSale

30

220

250

35

115

150

24

170194

24

145169

28

95123

25

160185

0

50

100

150

200

250

Oct. Nov. Dec. Jan. Feb Mar.Months

Finance SaleCash SalesTotal Sales



40%- 12 Months

1Following tables helps to illustrate the different scheme policy adopted by the organization on the installment basis.

Honda Scooter/Motorcycle Finance Scheme's @13% (Table-5)

Source: Prospectus of Syakar Comp. 40%- 18 Months Net @ 9 %/11%S.no Model Price D/payment

40%ServiceCharge

Reg.2year

Insu.2 year

P.A.I1year

TotalD/payment

Monthly payEMI

13%Interest

Rebate TotalRebate2%* 4%**

1 Dio 125900 50360 800 2000 6300 300 59460 4642 8012 1264 25102 Shine Drs 130900 52360 800 2000 6400 300 61560 4826 8330 1314 26163 Shine Dss 135900 54360 800 2000 6600 300 63760 5011 8648 1364 27154 Unicorn 156900 62760 800 2000 7800 300 73360 5785 9984 1574 3139

This table clarifies that finance scheme policy at the 13 % interest rate with the time period of 18 months. In this case 40% price should be pay atfirst & further installment should be paid monthly. Customer also gets a 2 % & 4% rebate if he clears his installment in timely. The first down

payment for the Dio, Shine Drs Shine Dss & Unicorn are 50360, 52360, 54360, & 62760 respectively. Monthly installment for the Dio, ShineDss & Unicorn would be 4642, 4826, 5011, & 5785 respectively which includes all the road tax, service charge, insurance charge & interest char charge.

Table-6 Honda Scooter/Motorcycle Finance Scheme's @13%

Source: Prospectus of Syakar Comp. Net @9%/11%

This table clarifies that finance scheme policy at the 13 % interest rate with the time period of 12 months. In this case 40% price should be pay atfirst and further installment should be paid monthly. Customer also gets a 2 % and 4% rebate if he clears his installment in timely. The first down

payment for the Dio, Shine Drs Shine Dss and Unicorn are 50360, 52360, 54360 & 62760 respectively. Monthly installment for the Dio, ShineDss and Unicorn would be 6747, 7015, 7283 & 8408 respectively which includes all the road tax, service charge, insurance charge and interestcharge.

S.no Model Price D/payment40% ServiceCharge Reg.1year Insu.1 year P.A.I1year TotalD/payment Monthly payEMI 13%Interest Rebate TotalRebate2%* 4%**1 Dio 125900 50360 800 500 3150 300 55110 6747 5424 848 16912 Shine Drs 130900 52360 800 500 1200 300 56860 7015 5640 882 17593 Shine Dss 135900 54360 800 500 3300 300 58960 7283 5855 915 18254 Unicorn 156900 62760 800 500 3900 300 67960 8408 6760 1057 2108



40%- 24 Months

-

16 Honda Scooter/Motorcycle Finance Scheme's @13% (Table-7)

Net @ 9%/11%

Source: Prospectus of Syakar Comp.This table clarifies that finance scheme policy at the 13 % interest rate with the time period of 24 months. In this case 40% price should be pay atfirst and further installment should be paid monthly. Customer also gets a 2 % and 4% rebate if he clears his installment in timely. The first down

payment for the Dio, Shine Drs Shine Dss and Unicorn are 50360, 52360, 54360 & 62760 respectively. Monthly installment for the Dio, ShineDss and Unicorn would be 3591, 3734, 3877, & 4476 respectively which includes all the road tax, service charge, insurance charge and interestcharge.

Table-8Honda Scooter/Motorcycle Finance Scheme's @11%

Source: Prospectus of Syakar Comp.@ 9%/11%

S.no Model Price D/payment40%

ServiceCharge

Reg.2year

Insu.2 year

P.A.I1year

TotalD/payment

Monthly payEMI

13%Interest

Rebate TotalRebate2%* 4%**

1 Dio 125900 50360 800 2000 6300 300 59460 3591 10651 1693 33662 Shine Drs 130900 52360 800 2000 6400 300 61560 3734 11074 1760 35013 Shine Dss 135900 54360 800 2000 6600 300 63760 3877 11497 1827 3634

4 Unicorn 156900 62760 800 2000 7800 300 73360 4476 13274 2110 4196

S.no Model Price D/payment

50%

Service

Charge

Reg.

2year

Insu.

2 year

P.A.I

1year

Total

D/payment

Monthly pay

EMI

11%

Interest

Rebate

2%*1 Dio 125900 62950 800 2000 6300 300 72050 3810 5624 10442 Shine Drs 130900 64450 800 2000 6400 300 74650 3961 5847 10853 Shine Dss 135900 67950 800 2000 6600 300 77350 4112 6070 11264 Unicorn 156900 78450 800 2000 7800 300 89050 4784 7008 1300



50%-24 Months

50%-12 Months50%-12 Months

1

This table clarifies that finance scheme policy at the 11 % interest rate with the time period of 18 months. In this case 50% price should be pay atfirst and further installment should be paid monthly. Customer also gets a 2 % rebate if he clears his installment in timely. The first down

payment for the Dio, Shine Drs, Shine Dss and Unicorn are 62950, 64450, 67950, and 78450 respectively. Monthly installment for the Dio, ShineDss and Unicorn would be 3810, 3961, 4112 and 4784 respectively which includes all the road tax, service charge, insurance charge and interestcharge. Honda Scooter/Motorcycle Finance Scheme's @11% (Table-9)

Source: Prospectus of Syakar Comp. Net@9%


payment for the Dio, Shine Drs, Shine Dss and Unicorn are 62950, 64450, 67950 and 78450 respectively. Monthly installment for the Dio, ShineDss and Unicorn would be 5564, 5785, 6006 and 6934 respectively which includes all the road tax, service charge, insurance charge and interestcharge. Table-10 Honda Scooter/Motorcycle Finance Scheme's @11%

Source: Prospectous of Syakar Comp. Net@9%


ServiceCharge

Reg.1year

Insu.1 year

P.A.I1year

TotalD/payment

Monthly payEMI

11%Interest

Rebate2%*

1 Dio 125900 62950 800 500 3150 300 67700 5564 3814 7032 Shine Drs 130900 64450 800 500 3200 300 69950 5785 3965 7313 Shine Dss 135900 67950 800 500 3300 300 72550 6006 4116 7584 Unicorn 156900 78450 800 500 3900 300 83650 6934 4751 874


ServiceCharge

Reg.2year

Insu.1 year

P.A.I1year

TotalD/payment

Monthly payEMI

11%Interest

Rebate2%*

1 Dio 125900 62950 800 2000 6300 300 72050 2934 7465 13942 Shine Drs 130900 64450 800 2000 6400 300 74650 3050 7762 14503 Shine Dss 135900 67950 800 2000 6600 300 77350 3167 8058 15054 Unicorn 156900 78450 800 2000 7800 300 89050 3656 9303 1738



18


payment for the Dio, Shine Drs, Shine Dss and Unicorn are 62950, 64450, 67950 and 78450 respectively. Monthly installment for the Dio, ShineDss and Unicorn would be 2934, 3050, 3167 and 3656 respectively which includes all the road tax, service charge, insurance charge and interestcharge.



193.2 Analysis of Data Table-11

Correlation between the cash sales and finance salesMonth Cash

Sales(X)FinanceSales(Y)

x =X-150.83 y =Y-27.67 X 2 y2 xy

Oct.

2007

220 30 69.17 2.33 4784.48

9

5.429 161.166

Nov.2007

115 35 -35.83 7.33 1283.789

53.729 -262.364

Dec.2007

170 24 19.17 -3.67 367.489 13.469 -70.354

Jan.2008

145 24 -5.83 -3.67 33.989 13.469 21.396

Feb.2008

95 28 -55.83 0.33 3116.989

0.109 -18.424

Mar.2008

160 25 9.17 -2.67 84.089 7.129 -24.484

n=6 ∑x 2 =9670.834

∑y 2 =93.334

∑ xy =-193.334

We have, ∑X

X = n

= 9056

= 105.83

∑YY = n

= 166

6

= 27.67

The formula of Karl Pearson's Correlation coefficient is,

∑xy

r =∑x 2 ∑y 2



20

-193.334= 9670.834 93.334

-193.334= 902617.621

-193.334= 950.062

= -0.204

Hence correlation is in negative i.e. -0.204 so there is a low degree of correlation betweencash sales and finance sales. From this we can interpret that the cash sales and finance saleshave an inverse relationship.

3.3 Study Results :

On the basis of study of different installment scheme policy and sales of SyakarCompany following result came out:-

1. This organization is considered as one of the successful company in the Nepal andearning an utmost profit.

2. Sales are maximum on the period of festival. Company provides the leverage anddiscount during the main festival i.e. Dashain and Tihar.

3. Total Sales always fluctuate during the period of month.4. In the context of 2 wheeler industry, this company is selling the maximum product

then any other company.5. Syakar Company is fulfilling the desire ness of rider by launching the different,

comfortable and stylist bike in the market.6. Though it is a profit oriented company, it is providing a different kind of service to

the customer in order to make a good image towards the public.7. Syakar established a voluminous branch in each and every corner of place in order to

make a convenient and easiness to the customer.8. It is also helping in the employment opportunity. More then 30 thousand manpower

are recruited in this company.9. Customer used to purchase the motor bike in cash basis rather then the installment

basis.

10. Finally, about the brand image of the company, Syakar has already created anawesome brand, image in Nepal



21

Chapter IVSummary and Conclusion

4.1. Summary

Before developing of 2 wheeler vehicle, people used to travel the different places by their own foot which create very monotonous and exhausted. The history of the motorcycle -- thisrumbling, snorting, centaur, half human, half iron -- is only a century old. It began just assoon as the bicycle took its modern form in 1885.Honda Company started in 1946 bySoichiro Honda who wanted to produce cheap transportation for the people after the SecondWorld War. In the Nepal, Syakar company ltd have been an authorized distributor of Hondamotor cycle since 1977. Today it is a leader and prominent innovator in the 2 wheeler industry. It is noted that the Syakar has made substantial progress in selling their brand of motor bike. . This project written on Honda Company helps to promote and develop theinterests of 2 wheeler rider. It explores the detail installment scheme policy so the personwho wants to purchase on the installment can easily grab the information about it. In today'scontext, due to political instability, lots of strikes and lockout are taking place. They createdobstacle in visiting the organization frequently which caused obstacle in collecting data intime and the completion of the field work.

For writing a report reliable data play a greatsignificant role. So we have to collect the adequate data from related field before writing thereport collection of reliable data from related institutions make the report viable. The mainaspects of the methodology of data collection are:


In this study analytical research design was used for clearing the situation on the basis of presented data and fact. The data are carefully studied and analyzed systematically under specific major heading so as to meet the objective of the study. Both exploratory anddescriptive types of study were conducted in order to prepare this field report. The data arecollected both from the primary source and secondary sources. Simple comparative bar diagram, bar line diagram and multiple bar diagram are used to show the sales done by thecompany. Generally for the analysis of data presentation I used a Karl Pearson's coefficientof correlation which enables us in determining the degree and direction of relationship

between two variation i.e. cash sales and finance sales.Syakar Company is providing different service

to their customers. One of the good services for their customer is selling the motorbike in theinstallment basis so that customer will not be relief from paying full amount at a same time.

Besides the customer, from such a policy it also helps to increase sales of company. While purchasing in the installment then s/he should have to pay certain interest rate during a year.Such interest rate is influenced by the number of the installment period and the first down

payment. It's a 1 st branch of Syakar Company of Honda product, just started in October2007.In the opening month its sales is so maximum i.e. 220. In the month of November2007, saleswere decline to 115. Similarly, in the month of December 2007 its sales raise upto170. InJanuary 2008, 145 bikes are sales which were decrease by 25 then the previous month. InFebruary 2008, 95 bikes were only sold. By the way in the month of March2008 the saleswere again raise up to 160. By analyzing this data, sales trend of Syakar Company in BuddhaBari Complex is very much fluctuating. Correlation between cash sales and finance sales was



22in negative i.e. -0.204 which shows that there is a low degree of correlation between cashsales and finance sales. Sales are maximum on the period of festival. Company provides theleverage and discount during the main festival i.e. Dashain and Tihar. Customer used to

purchase the motor bike in cash basis rather then the installment basis. Finally, about the brand image of the company, Syakar has already created an awesome brand, image in Nepal.

4.2. Conclusion

From the study of sales activities, the conclusion can be drawn that sales of different productof Syakar Company is excellent. It made a good image towards the people by providing a

better service and facilities to their customer. To achieved the desired goal, it has manage it’shuman resources, technology in accordance with the need .Training has been Provided to theemployees to develop competitive, qualitative and efficient manpower. Most of the parts of Syakar Company have been computerized to meet changing demand. From this projectwritten I also gain much information of environment threats and opportunity. Though it isvery difficult and challenging task at the beginning of this projects but the result came fromthis is very fruitful for me. I recognized the different reputed person of country and had agolden opportunity to share my ideas and views with them.

4.3. Workable Suggestion

On the basis of study, following suggestions may be recommended for the consideration toimprove the existing situation.

1. Syakar Company has 27 branches. It should give more priority to satisfactory branches and should expand the branches where it is needed and profitable. For this it should study the market well.

2. Now Syakar Company is charging a high rate of interest in comparison to other company in the installment basis. This may decrease the sales of company. Lower

the sales lower will be earning. So it should consider about it.



Documents

Nau Raj Project