1.

1 Industry Profile
The growth in the Indian glass industry is dominated by container glass segment, which accounts
for majority of the sales in terms of volume, according to a TechSci Research report. The
majority of the sales in terms of value is dominated by float glass segment and further in the
coming years sales in float glass segment of the Indian glass industry will increase on the
sidelines of real estate growth across retail, residential and office estate.
Liquor and Beer Industry forms almost 2/3 of the container glass demand in India followed by
food and pharmaceutical industry. Flat glass has created significant place in the glass industry
not just in India but on a global level. Total size of Flat Glass industry in India is 0.12 million
tonnes per month. Indian Glass Industry consists of architectural, automotive, value added glass,
mirrors & furniture segment which has market share of 45%, 15%, 15%, 10% & 15%
respectively.
Per capita glass consumption has increased significantly in India from 0.58 kg to 1.1 kg;
however it is still much lower as compared to other developing countries and much lower than
China, where it stands at around 15 kg.
India with 9 float plants is still way behind China which has approximately 196 float plants. This
suggests that India has immense potential to increase capacity.
Indian Glass Market is estimated to Increase at a CAGR of 15% over the Next Three Years.
Fuelled by growth in sectors like real estate, infrastructure, retail, automotive and food &
beverages, the country's glass industry will acquire a market size worth Rs 340 billion by 2015
from Rs 225 billion at present, according to a study by industry body Assocham. The glass
consumption growth is expected in construction (10-12%), automotive (20), consumer goods
(15-20) and pharmaceuticals (15-18) sectors.
Flat glass in India is majorly used for construction purpose, or by the automotive sector along
with railways. In terms of value, the construction sector of the country held a majority share in
sales of flat glass in the country. The recent infrastructural developments in the real estate sector
of the country are majorly responsible for the majority share of construction sector in the end
user analysis. The research and developments in the flat glass industry have led to production of
highly specialized form of glass intended for production of different products and applications.
All such developments are leading to positive growth in the flat glass market of India.
Indian Glass Industry
The growth in the glass industry is characterised by the increase use of processed & reflective
glass as the Indian customer has become more aware about the importance of glass in effectively
addressing the concerns of safety and energy efficiency. Indian Glass Industry

Asahi India Glass Ltd. (AIS) is India's leading integrated glass solutions company and a
dominant player both in the automotive glass and architectural glass segments. It commands over
70% share in the Indian automotive glass market. Established in 1984, AIS' footprint today spans
the entire spectrum of the automotive and architectural glass value chains. AIS provides end to
end solutions right from manufacturing of glass, processing, fabrication and installation services.
It is a sand-to-solutions organization offering varied types of glass products & services for
institutional buyers as well as retail customers, including:

Automotive glass products: The various types of glass range from laminated
windshields, tempered glass for sidelight and backlight along with value-added glass.

Architectural glass products: Annealed glass range includes clear glass& tinted glass
and a range of value added solar control & heat-reflective glass, mirrors, frosted & lacquered
glass types.

Windshield Experts: Windshield Experts is Indias first and largest car windscreen
repair & replacement network in India with presence across 32 cities and 56 conveniently located
service centers. It is the preferred destination for discerning customers who want their car
windscreen replaced or repaired.

Glasxperts: AIS Glasxperts a full service offering from AIS, one of the leading glass
manufacturers in India- brings together an integrated approach and specialized knowledge to
glass consultancy, product selection and installation to transform living spaces and commercial
spaces.AIS is India's only provider of lifestyle solutions in glass architecture, whose offerings
span across Privacy, Aesthetic, Window, Security, Acoustic and Energy-efficiency solutions.

4G Solutions: A comprehensive bouquet of solutions that includes consultation services,

glass selection & processing, and glass integration, installation and service

AIS VUE: A range of High Performance uPVC door and window solutions that includes
Silent VUE - Noise cancelling windows, Guard VUE - Burglar-resistant windows, EcoVUE Energy saving windows, Safe VUE - Safety glass windows and Custom VUE - Customised
benefit windows.
The Company's origin can be traced to the JV agreement between the Labroo family, Asahi Glass
Co. Ltd. (AGC), Japan and Maruti Suzuki India Ltd. in 1984. As promoter group, the three
entities jointly hold about 55% of paid-up equity capital of AIS with the balance 45% being held
by the public.
2

Befitting its status as one of the leading glass manufacturing companies in India, AIS is
synonymous with best in class quality and service in the Indian glass industry due to its people,
technology, engineering capability, manufacturing scale and skill. Listed on the National Stock
Exchange and Bombay Stock Exchange, AIS epitomizes the highest standard of transparency,
integrity and most importantly, trust - amongst its customers for whom AIS is a partner of choice,
its employees and other stake holders.
The organised glass sector is dominated by large players like ASAHI Glass India Ltd, Hindustan
National Glass & Industries ltd, Piramal Glass, Saint-Gobain India, HSIL, Owen Corning,
Triveni Glass, Borosil, Nippon Electric glass, Gujarat Borosil and Sezal Glass.
The organised glass industry employs 30 lakh people directly and provides indirect employment
to 5 lakh people whereas the unorganised sector employs around 5-6 lakh people.Moreover, 70
per cent of the total glass production in the unorganised sector in India is contributed by
Firozabad glass industry, which is India's biggest glass cluster.
About 75 per cent of the total glass industries are concentrated in Uttar Pradesh, Maharashtra,
Gujarat, Karnataka and Andhra Pradesh.
The highest share in the number of factories of the glass industry is Uttar Pradesh with a share of
36.9 per cent, followed by Gujarat at 15 per cent, Andhra Pradesh and Tamil Nadu at 5.6 per cent
and Karnataka with 4 per cent.The highest employment in the glass industry is in Gujarat
followed by Uttar Pradesh, Maharashtra and Andhra Pradesh.
The per capita glass usage in India is 1.2 kg compared with 8-9 kg in developed countries and
30-35 kg in the US, the study found.
The major export destinations of the glass industry are the US, China, Brazil and Germany. The
countries from which the glass industry mainly imports are China followed by USA and
Germany.
Today, more than ever, AIS - Indias leading glass manufacturer, is driven to market-leading
innovations providing the right blend between daylight and energy saving, visual and thermal
3

comfort, technology and sensitivity, along with state of the art glass manufacturing plants. AIS
enable an age of Green Buildings and supporting a truly sustainable future.
1.2 COMPANY PROFILE
Windshield Experts is the retail venture of Shield Auto glass ltd, promoted by Labrooss through
their investment company M/S Allied Fin Cap Services Pvt Ltd, and Japanese Glass CompanyAuto glass Company Ltd.
Windshield Express is Indias first and only specialist in automotive glass repair and
replacement. Windshield Experts provide fast, word - class guaranteed service at an affordable
price to customers and follows international safety standards for car glass repair and
replacement.
At Windshield Experts they make it their business to keep at par with the latest technology
available in the international market so as to provide their customers with a service well
appreciated.
The features that distinguish Windshield Experts from others are:
1. They specialize in automotive glass.
2. Insurance help and hassle free claim procedure.
3. Cashless transactions for policy holders of many insurance companies.
4. One year warranty on workmanship and materials used.
5. Repair technology for small chips and cracks on car windshield .This saves both time and
money.
6. Fast job completion time.
7. Mobile van service at customers residence, workplace or roadside.
8. Conveniently located service centers.
9. Extended working timings 365 days a year.
10. Wide inventory of cars (both Indian and imported).
11. Good ambience.
12. A state-of-art customer helpline service with a national Toll Free No. 1800-11-3636 to handle
customer

enquires

promptly

and

provide

convenience

to

customers.

COMPANY STRATEGY
The strategy at Windshield Experts is all about driving sales growth and maximizing the
efficiencies of their operations. For their Corporate partners, primarily the Insurance and major
Fleet companies. They manage their automotives glass claims effectively to minimize their
losses and delight their customers. This enables them to build relationships based on trust and
quality of service.
Their business model is based on close co-ordination between main management and the
business units in order to maximize the benefits from scale economics and efficiencies. All
operations are strongly integrated through the value chain from supply and logistics, to call
centre operations, through to service centre and mobile job execution.
They dont underestimate the value of local knowledge and so each business unit develops
respond to local needs across all their centers
COMPANY MAIN WORKS

Their main work is to replace or repair the broken glass, so, it is necessary to know how glass is
broken.
Glass is fragile in nature and is designed to break. The most vulnerable glass is the Windshield
(front glass), since it is located at a very sensitive place in a vehicle. Please ensure it is original
glass and from any defects for driving.
Tempered glass breaks down into small bits like sugar particles .Laminated glass is safer as it is
made up of two sheets of glass with an interlayer of Polyvinyl Butyral (PVB), which prevents it
from breaking into small particles. This makes it much safer in the event of an accident because
the Windshield might crack but the vision of the driver will not be disturbed, allowing a
convenient onward journey. Only a laminated Windshield is safe, as it does not shatter on impact.

THE PRODUCTS OF WINDSHIELD EXPERTS

Laminated Windshield a laminated Windshield is a sandwich construction of two pieces of glass
with a clear, strong plastic Polyvinyl Butyral inter layer.
Advantages:

Laminated glass does not shatter on impact.

Localized breakage at the point of impact, thus not hampering visibility.

High resistance to penetration, thus ensuring safety.

In case of head impact during accidents, the injury is minimized due to flexibility of windshield.

A Laminated Windshield does not break spontaneously unlike a tempered windshield. Thus the
chances of accidents are eliminated, as sudden breakages do not occur.

Laminated Windshield can be repaired.

Tempered Windshield Tempered safety glass is fabricated by heating pre-processed glass in

special furnaces to the softening point. It then quenched by a uniform blast of cool air.

Tempered Windshield shatters in the form of sugar particles, thus causing severe facial or head
injury

.Tempered Windshield cannot be repaired.

Tempered glass is mainly used for side windows and rear glass.

Nobody cares for your car-glass like WE do.

Besides providing the finest repair and replacement service for broken car-glass, WindshieldExperts provide you with innovative products and services related to automotive glass.

Security Car Glass Etching:

WENMARK is a deterrent for the potential car thief. WENMARK involves etching your car
glass with your cars registration number. Only WE has the technology to even etch the front
laminated glass of your car.

It is easy for the car thief to change your cars registration plate before re-selling it, but it is not
possible for him to change all the glass of your car.

The WENMARK technique comes with a Safety Sticker that makes the etching more prominent
a real deterrent against potential car thief.

WE Clean:

Helps Keep Car Glass Sparkling Clean

it is spray, which helps to keep the windshield and other glasses of the car spotless and clean. It
is super quality Car-Glass cleaner.

WE Wipe:

Smooth, windshield-friendly our wipers, enable you to have a clear view even through a
downpour. The maker of the wipers is such that the glass has no scratches after use due to their
sleek and smooth edges.

WE Films:

Help as a heat deterrent Helps in keeping the inside temperature of car cool and enhances AC
performance. This film is sun proof thus preventing the sunrays to fall into the vehicle directly.

WE Clear:

Rain Repelling Glass-Coating this is a rain repellent coating for the rainy season that chemically
cleans the glass. Reduces wiper use & keeps the rain droplets away from the car glass. This helps
in keeping the glass clear of water so as to have a better view while driving.

Windshield Repair Pioneer

Windshield Experts, the pioneers in highly specialized automotive glass repair and replacement
in India, has expanded its market by opening its new retail outlet in Hyderabad. With the opening
of this new retail outlet, Windshield Experts has a total of 21 retail outlets including those in
Delhi, NCR region, Punjab, Chennai, Mumbai, Bangalore, Ahmadabad, Jaipur, Indore, Surat,
and Pune. The Indian market has undergone a sea-change with living standards of people rising
and the desire to get international services and facilities. Hyderabad is a flourishing market, as it
is a home to many of the Silicon Valley Professionals.
VISION & MISSION
Tag line Faster.safer.better
Mission
Jikko
Execution for excellence
Vision
See more
This byline captures our culture:

It describes our product & services which delight our customers by setting new standards

in comfort, safety & security

It expresses our corporate culture of merit & transparency.
It defines the quality of our people;to want to see,learn and do more,attention to
detail,and in depth research and work.essentailly,to transcend the ordinary

Strength

Serving nearly 85 Percent

SWOT
ANALYSIS

1.

customers

in

India

2. Windshield Experts

provided windshield for all company

vehicles

India(Domestic

running

in

and

International)

3. Customers are loyal.

4. Good presence and visibility as an automobile service brand
Weakness

1.

Need

to

promote

and

market

brands

aggressively.

2. Lack of advertisement compared to some others means lesser brand

recall
Opportunity

1. Belron is the worldwide leader in vehicle glass repair and

replacement, so WE has an opportunity to spread their business across
the

nation

boundary.

3. Fast industry growth rate and more presence in emerging economies

Threats

1.

High

competition

2.Geographic factors limit competition

3. Increasing fuel prices and govt policies

(Souce: Human Resource Deptt.)

2.1 Literature Review

among

suppliers.

The purpose of these studies is to discuss the concept of Franchise Management. Franchise has
evolved over the years and has become the most popular form of business ownership today.
Therefore to Understand the concept of franchise management these studies was firstly provided
the clarity on franchise management and also examined the management control issue.
This research provides an overview of the recent literature on franchising, with special attention
to management control issues. Based on an analysis of franchising articles published in twentyfive high-impact journals over the period 19962008, the literature is divided into the following
three broad streams: franchise initiation and subsequent propensity to franchise, franchise
performance and control of franchising relationships. Several research gaps and avenues for
future research are identified, especially towards a systematic study of management control
issues in the context of franchising relationships.
(Franchising: a Literature Review on Management and Control Issues.Sofie Verbieren,
1Martine Cools2 & Alexandra Van den Abbeele3)
There are a number of studies that have approached to the evaluation the performance of a
company. Some pioneer works have been undertaken to evaluate performance of companies but
very few studies have been done on financial aspects and its impact on the given economic
scenario
Salmi, T. and T. Martikainen (1994), in his "A review of the theoretical and empirical basis of
financial ratio analysis", has suggested that A systematic framework of financial statement
analysis along with the observed separate research trends might be useful for furthering the
development of research. If the research results in financial ratio analysis are to be useful for the
decision makers, the results must be theoretically consistent and empirically generalizable.
Greninger et al.(1996), identified and refined financial ratios using a Delphi study in the areas
of liquidity, savings, asset allocation, inflation protection, tax burden, housing expenses and,
insolvency. Based on the Delphi findings, they proposed a profile of financial well-being for the
typical family and individual.

10

Jae K.Shim & Joel G.Siegel (1999), had explained that the financial statement of an enterprise
present the raw data of its assets, liabilities and equities in the balance sheet and its revenue and
expenses in the income statement. Without subjecting these to data analysis, many fallacious
conclusions might be drawn concerning the financial condition of the enterprise. Financial
statement analysis is undertaken by creditors, investors and other financial statement users in
order to determine the credit worthiness and earning potential of an entity.
Singh P.K. (2003) evaluate the financial appraisal of IDBI Bank Ltd. by using accounting ratios
and applied t test and correlation for check the validity of hypotheses. The study concluded that
IDBI Bank is a progressive, technology driven and professionally managed entity. Bagchi S.K
(2004) analyzed the practical implication of accounting ratios in risk evaluation. The study
concluded that accounting ratios are still dominant factors in the matter of credit risk evaluation.
Tyagi et al (2005) examine the financial appraisal of Hindustan Liver Ltd. (HLL). Many
accounting ratios were calculated and analyzed in length to appreciate their impact on company's
performance. They used DuPont chart to check the overall credibility of company. The results
gave the conclusion that the company has managed its cash position very efficiently.
Vanitha et al. (2007) examined the financial performance of Indian Manufacturing Companies. In
order to evaluate the financial performance they used ratio analysis, mean, standard deviation
and 't' test as tools of analysis. The study found that in India merging companies were taken over
by companies with reputed and good management.
Gopinathan 2009), used financial ratios to analyze the financial performance. The analysis was
typically done to make sense of the massive amount of numbers presented in the financial
statements of the company. It helps to evaluate the performance of a company, so that investors
can decide whether to invest in that company. Different ratios categories like profitability ratios,
liquidity ratios, debt ratios, performance ratios and investment evaluation ratios are calculated for
covering the different aspects of performance.

11

Jenkins (2009), states in the study that technique of financial ratios analysis can help in gaining a
complete picture of the financial outlook of a company. The study states that the most important
thing is cost (fixed as well as variable). Fixed costs are those costs that are always present,
regardless of how much or how little is sold. Variable costs are the costs that increased or
decreased in ratios proportion to sales.
DAS S. (2010), analyzed and interpreted the financial statements of different companies viz.
ACC Ltd, Tata Steel, Jindal Steel and Power Limited, Hindustan Zinc Ltd. (HZL) and Gujarat
Mineral Development Corporation (GMDC) with respect to many financial ratios such as current
ratio, debt equity ratio, net profit margin, return on investment etc
Sheela (2011) reveals in his research paper the financial performance of Wheels India Ltd.
through various financial tools namely ratio analysis, comparative balance sheet and DuPont
analysis and also statistical tools such as trend analysis and correlation.
Under this research the relationship between franchising and entrepreneurship. This paper begins
with a review of studies on franchising in leading entrepreneurship and management journals
over a 12 year period. It illustrate how although the franchisor, franchise and the franchise
organization are important elements of entrepreneurship, there has been only a insignificant link
in the contribution of studies in franchising to entrepreneurship theorizing and vice-versa. The
paper suggested fruitful new avenues for franchise research which would integrate franchising as
an important, yet heterogeneous, form of entrepreneurship, namely: opportunities, network and
social capital and entrepreneurial learning. The Research is carried out in 2010.
(Contribution of franchise research to entrepreneurship: a review and new opportunities
by Joanne Larty, Lancaster University Management School 2010)

12

2.2 About the topic

The concept of franchising has been around for a long time. The idea of selling off a part of
business to expand into new market or maintain a major part of business usually came from the
lack of investment fund from business owners. Through their creativity they were able to keep
the business alive by selling franchise opportunities to the new entrepreneurs.
The popularity of franchise business model has to do with its proven track record of success and
ease in becoming a business owner. There is a higher possibility of success because a proven
business procedure and solution already set. In addition, products, services, and business
operations have already been recognized.
Younger (1995) noted that the first franchise system has been developed by Singer Company. In
the 1850s the company manufactured sewing machines and sold them by creating a network of
dealers. Singer provided retail system, trained and delivered the format of shop management to
the dealers. Their franchisees, dealers, paid Singer a fee to work in a particular area and earned
money for each sale of a sewing machine they bought from the parent company and then resold.
Their significant in the beginning of the franchise and the opportunities it crated came from the
creation of the contract that is still used today between the original business owner and the
franchisees. Nevertheless, even if the management of Singer system was incomplete, it can be
said that it was the first prototype of franchise business.
In Shield Auto glass Ltd. The franchise is Single operator franchise; A Single Operator franchise
can take two forms. Both involve the selling of a product or service within a particular trade and
require a certain degree of marketing to ensure that the public are aware of the services or
products offered. One type of Single Operator franchise involves being out and about with the
public to provide a service, such as car valet for example. In this case the franchisor will often
supply all trademarked items including equipment, uniforms and vehicle branding. The
franchisees will operate from their own van and provide valet services to all customers under the
banner of a trademarked name. Another form of Single Operator franchise involves working
directly with businesses rather than the general public. This usually only involves working
standard office hours, and although the franchisee should be mobile most work can be carried out

13

from a home office. Example of business sectors include cleaning, motorist service and
repair/security systems.
Franchising concept first developed by Singer Company who produced sewing-machine.
Nevertheless, it is well-know because many fast-food restaurants successfully implemented this
concept over the world. The best example is McDonalds where franchisees have a right to
create new idea of their menus, while the business owner can still control the quality of foods
and services. McDonalds also ready to adapt themselves to marketing trend or customer demand
in each country that enable them to success in every market. Franchise is not limit to food
industry, but it can adjust in various industries such as retail shops, hotel chains, car rental,
consultant services, and so on as divided into 4 types: retail franchise, management franchise,
single owner franchise and investment franchise. Franchising has several advantages and some
disadvantages that the person who would like set up his or her business by franchise model need
to studied and selected proper franchisor before signing franchise contract.
Ratio analysis enables the analyst to compare items on a single financial statement or to examine
the relationships between items on two financial statements. After calculating ratios for each
year's financial data, the analyst can then examine trends for the company across years. Ratios
are often classified using the following terms: profitability ratios (also known as operating
ratios), liquidity ratios, and solvency ratios. Profitability ratios are gauges of the company's
operating success for a given period of time. Liquidity ratios are measures of the short-term
ability of the company to pay its debts when they come due and to meet unexpected needs for
cash. Solvency ratios indicate the ability of the company to meet its long-term obligations on a
continuing basis and thus to survive over a long period of time.
The objective of this research report is to study the financial status of the organization and the
process for selecting the liable franchise owner as income from the franchisee was increasing
year per year. Franchising provide the way to increase profits to business owners without new
capital investment and also enable new entrepreneur to success in their business. Customers
satisfaction has also increased through franchising because even if they travel to different
counties, they can trust the product and service from the same brand. Therefore, Win-Win
situation is occurred. So a model was being suggested

14

3.1 PURPOSE OF THE STUDY

Is to understand the concept of franchisee which is currently being used by the company and to
know the financial status of the organization with the help of financial statement of the company.
Franchising has several advantages and some disadvantages which should be understood by the
person who would like to set up his or her business by franchise model

3.2 Objective of the study

Primary Objective

To study the financial status of the organization using different ratios

The objective of the project is to study the process for selecting the liable franchise
owner and their management

Secondary Objective
To know the past status of the Franchisee Owner in terms of their supplied material &
services in existing business.
To collect and evaluate ideas/views and expectations of the market condition for the
improvement in providing services to the customer.

15

3.3 Research Methodology of the Study:

Methodology is generally a guideline for solving a problem, with specific components such as
phases, tasks, methods, techniques and tools. Research comprises defining and redefining
problems, formulating hypothesis or suggested solution ,collecting ,organizing and evaluating
data, making deduction and reaching conclusion and at least carefully testing the conclusion
to determine whether they fit the formulating hypothesis. Research methodology is a way to
systematically solve the research problem. It may be understood as a science of studying how
research is done scientifically. It involves data collection techniques, the method of analysis of
data, their interpretation and final summarization. It has many dimensions and research methods
constitute a part of research methodology.
Research Design:
1. Research design is the strategy, the plan, and the structure of conducting a research project.
2. A research design is the specification of methods and procedures for acquiring the information
needed.
3. It is the over-all operational pattern or framework of the project that stipulates what information
is to be collected from which source by what procedures.

Types of research design: Every Research needs lots of dedication from the researchers part-the
amount of dedication mainly depends on the subject matter of the research. Before undertaking any
research in any subject areas one must be sure about the intended purpose of the research-this
purpose determines what type of research one is going to undertake. Any scientific research may
fall into the following three broadly categories:

Exploratory research: It is primarily done for the purpose of finding anything new in any
subject arena and always tries to shed some light in the unknown domain of knowledge

Constructive research: This is mainly done by many technological corporate in order to find
new/alternative solutions to any particular crisis or problems..

16

Empirical research: This is very impressive observational type of research, where one observes

or test on real-life data or analysis the pattern of some specific events in order to identify the nature
or the class of trend that specific phenomenon maintains. Based on the test result, researchers try to
draw lines in order to predict the result of that type of incidents with certain level of confidence.
Descriptive/Quantitative Research: Descriptive research is undertaken when the researcher
want to know the characteristics of certain groups. This type of research methods requires
quantifiable data involving numerical and statistical explanations. Quantitative analysis
hinges on researchers understanding the assumptions inherent within different statistical
models. It generates numerical data or information that can be converted into numbers. The
presentation of data is through tables containing data in the form of numbers and statistics.

The research conducted in project Descriptive/Quantitative Research.

Sources of Data Collection:

Primary Method: Data that have been observed and recorded by the researchers for the
first time to their knowledge. This type of collection is expensive and is time consuming.

It is collected by:
Communication
Observation
Questionnaire

Secondary Method: Data that have been already collected by and readily available from other
sources. Such data are cheaper and more quickly obtainable than the primary data and also may
be available when primary data cannot be obtained at all.
The type of data collection used is a Secondary Source

Websites
internet,
Journals
Annual report& book.

17

3.3.1Tools and techniques of analysis

Selection of relevant data from financial statement depending upon the objective of the analysis.
Calculation of the appropriate ratios from the data.
Comparison of the calculated ratios with ratios of the same concern in the past, or the ratios
developed from projected financial statements or the ratios of some other concerns or the
comparison with the ratios of the industry to which the concern belongs.
Interpretation of the ratios.
Types of Ratios
LIQUIDITY RATIO
A liquidity ratio refers to the working capital situation of the concern. It extremely essential for a
firm to meet its obligations as they become due so as to maintain its goodwill. For this purpose, a
firm needs to strike a proper balance between high liquidity and lack of liquidity,
as both the extreme situations are not favorable. The most common and important ratios in this
category, which indicate the excess of liquidity or its lack
(i)

Current Ratio: Current ratio indicates the firms ability to pay its current liabilities,
i.e. day-to-day financial obligations. It shows the strength of credit, strength of
working capital & capacity to carry on effective operations. Higher ratio i.e. more
than 2:1 indicates sound solvency position

(ii)

Quick Ratio or Acid Test Ratio: The Quick Ratio is a more absolute test of a firms
ability to meet its immediate liabilities. It base on those current assets, which are
highly liquid inventories, is excluded from the numerators of this ratio because
inventories are deemed to be the least liquid component of current assets.

(iii)

Net Working Capital: This ratio represents that part of the long-term fund
represented by the net worth & long-term debt, which are permanently blocked in
current assets. Certain minimum level of safety stock, permanent customers unpaid
18

bills, compensatory minimum bank balance & minimum cash balance are the
example of permanent working capital.
ACTIVITY RATIOS

The activity ratio of a company deals with its day-to-day operations and hence they are also used
for studying the working capital situation of the concern. The activity ratios examine how
quickly certain current assets like inventory, sundry debtors are converted into sales.
INVENTORY TURNOVER RATIO
Inventory turnover ratio is also known as stock velocity. Every firm has to maintain a certain
level of inventory of the finished goods so as to be able to meet the requirements of the in the
financial crunch.
Inventory Turnover Ratio = Net Sales/Average Inventory at Cost
This ratio measures the velocity of conversation of stock into sales. Usually, a high
inventory turnover ratio indicates efficient management of inventory because more
frequently the stocks are sold; the lesser amount of money is required tofinance the
inventory.

Debt Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.

19

LIMITATIONS:
Thefollowingarethelimitationsforthestudy
1. ThestudyislimitedintothedateandinformationprovidedbytheShieldAutoglassltd
anditsannualreports.
2. ThereportmaynotprovideexactfixedassetsstatusandpositionofShieldAutoglass
ltd;itmaybevaryingfromtimetotimeandsituationtosituation.
3. ThisreportisnothelpfulininvestinginShieldAutoglassltd.
4. Theaccountingprocedureandotheraccountingprinciplesarelimitedbythechangesmadeby
thecompany,mayvaryfixedassetsperformance.

20

Financial Structure
Financial Structure of Shield Autoglass ltd.
A glance at annual accounts of the company shows that it avails finance form the two sources:
o Internal Source of finance
o External source of finance
Internal Source of finance
The Internal Source of finance can further be classified into two categories. These are:
Paid up capital
Reserves and Surplus
External Source of finance
The External Source of finance can further classified into two categories. These are:

Long Term debt

Short Term debt
Long Term Debt
The company is raising long-term debt in mainly two forms.

Secured loan
Unsecured loan
Short Term Debt
Short Term debts include all the current liabilities of the company. The following is the detail of
current liability.

Internal Sources of finance/shareholders fund

21

Years
2010
2011
2012
2013
2014

(Rs. in lakhs)
Paid up Capital
Reserves and surplus
Owners Equity
183.33
1.30
184.63
183.33
4.26
187.59
183.33
-6.37
176.95
183.33
-79.15
104.17
183.33
-141.59
41.73
(Sources: Compiled from the annual reports of the company.)

250
200
150
100
50
0
-50

Paid up Capital
2010

Reserve Surplus
2011

Owner's Equity

2012

2013

2014

-100
-150
-200

Interpretation
1) The Authorised Share Capital of the Company is Rs. 2crores i.e. 20lacs equity shares @ Rs 10
each. The issued, subscribed and paid up capital is Rs. 1.83Crores i.e. 18.33lacs equity @Rs. 10
each.
2) The Company had transferred Rs.5.5 to Deferred Tax Liability prior to April 1, as per provisions
of Income Tax Act 1961 in accordance with Accounting Standard No. : ICAI out of General
Reserves.
3) The Company has not raised funds through the issue of shares.
Long Term Debt of Shield Autoglass LTD.
(Rs. in lacs)

22

Years

secured Loan

Unsecured Loans

Long Terms Debt

2010

259.18

14.50

273.68

2011

71.70

200.22

271.70

2012

324.66

346.69

2013

365.65

365.65

2014

433.99

433.99

500
450
400
350
300

Secured Loan(in lakhs)

250

Unsecured Loan(in lakhs)

200

Long term debt(in lakhs)

150
100
50
0
2010

2011

2012

2013

2014

(Source: Compiled from the Annual Reports of the company)

Interpretation
1. The company has move more dependable on the bank borrowing instead of deposits from the
outsiders. As a result, the interest cost of the company is on higher side.
2. The main source of secured loan of the company is standard charted bank, Delhi from which the
Company enjoys a fund based and non fund based working capital Limit of Rs.1.9 Crores.
3. The Unsecured Loan mainly from the Dealers deposit which the company received from every
dealer as the security deposit.

23

 Short Term Debt of Shield Autoglass Ltd.

2010

2011

2012

2013

2014

Creditor

31.63

38.92

140.01

197.17

287.83

Advances

22.00

49.90

43.50

31.30

31.90

Other

5.08

53.11

40.92

35.69

48.68

Liabilities
Provisions

1.1

2.66

4.96

7.61

(Source: Compiled from the Annual Reports of the company)

24

350
300
250
200
150

S Creditors

Advances

Other Liabilities

Provisions

100
50
0
2010

2011

2012

2013

2014

Interpretation
1. As it is clear from the above that sundry creditors, advances and other liabilities of the company
goes up very fast. It is due to increase in sales volume and purchases of the company, the
creditors are on higher side.
2. Increases in provision in 2011-12 due to declaration of interim dividend by the company.
Advances include the advances from sundry debtors and excise duty advances included in the
stocks of the company lying at various stock point.

Ratio Analysis
1. Current Ratio
(In Cr.)
Years

Current Assets

Current liabilities

Current Ratio

2011

3.92

3.22

1.22

2012

4.56

4.32

1.06

2013

3.20

2.33

1.37

2014

3.21

2.85

1.13

(Source: Compiled from the Annual Reports of the company)

25

5
4.5
4
3.5
3
Current Assets

2.5

Current Liabilities

Current Ratio

1.5
1
0.5
0
2011

2012

2013

2014

Interpretation:- Above table shows that in 2013 current ratio was maximum that was 1.3 and in
2012 it was minimum. Companys current ratio is continuously standing on about 1 . Thus we
can say the company is not in the sound position and it is a negative attributes. It can be a big
issue for the company to taking the loan from the bank. According to RBI norms it should be
1.33

26

2. Quick Ratio or Acid Test Ratio

ARS

Quick Assets(in cr.)

Current

Liabilities(in uick Ratio

cr.)
2011

3.28

3.22

1.01

2012

3.94

4.31

.91

2013

2.86

2.33

1.23

2014

2.78

2.85

.97

QUICK RATIO= Quick assets or liquid assets/Current Liabilities.

27

5
4.5
4
3.5
3

Quick Assets(in Cr.)

2.5

Current Liabilities(in Cr.)

Quick Ratio

1.5
1
0.5
0
2011

2012

2013

2014

Interpretation:Quick Ratio /Acid-test Ratio of 1: 1 isconsidered to be quite satisfactory as a rule of thumb. In

the case of Shield auto glass ltd the ratio lower that the norms in 2012 and 2014, in 2011 and
2013 it is almost on satisfactory level which indicates that
Company is not in position to meets its current obligations in time in 2010 and 2012.
There is more blocking of funds in inventory.
3. INVENTORY TURNOVER RATIO.
Inventory Turnover Ratio = Net Sales/Average Inventory at Cost
(Source: Compiled from the Annual Reports of the company)

28

Years

Net Sales(In Cr)

Average Inventory(In Cr)

Inventory

Turnover

Ratio
2011

7.62

.63

12

2012

7.91

.63

12.5

2013

9.19

.47

19.55

2014

10.54

.38

27.73

30
25
20
15

Net Sales

Average Ivnetory

Inventory turnover Ratio

10
5
0
2011

2012

2013

2014

Interpretation:- In the above chart inventory turnover ratio is continuously increasing that is a
good sign for the company. It means companys inventory management is improving .

INVENTORY CONVERSION

PERIOD/INVENTORY HOLDING

PERIOD
Inventory holding period means the period during which a firm holds on an averages stock out
that

might results in closing down the production line or lead to loss of sales.

Inventory holding period can be found by dividing the total number of working days in a year by

29

inventory turnover

ratio.

Inventory Conversion

/holding

period

390/Inventory

turnover ratio.
Year

Inventory turnover tatio

Holding Period(days)

2011

12

30

2012

12.5

29

2013

19.55

19

2014

27.73

13

(Source: Compiled from the Annual Reports of the company)

35
30
25
20

Inventory turnover taio

15

Holding Periods(days)

10
5
0
2011

2012

2013

2014

Interpretation:- Above table shows that inventory turnover ratio has increased from 12 in 2011
to 27.73 in 2014.This is good sign for the company. It shows that the inventory management of
the company is improving.
COMPARISON OF LONG TERM DEBT TO SHAREHOLDERSS /
DEBTEQUITY RATIO OF SHEILD AUTOGLASS
Debt Equity Ratio of Sheild auto glass limited (Rs. Cr.)

30

Years

Long term debt

Share holders fund

Debt equity ratio

2011

2.73

1.84

1.48

2012

2.71

1.87

1.45

2013

3.46

1.76

1.9

2014

3.65

1.04

3.51

(Source: Compiled from the Annual Reports of the company)

4
3.5
3

3.65

3.46
2.73

3.51

2.71

2.5
2

1.48

1.5

1.76 1.9

1.87

1.84

1.45

1.04

1
0.5
0

2011

2012

2013

Long Term Debt

Shareholder's Fund

2014

Debt Equity Ratio

Interpretation
According to this table, the debt-equity ratio has been increased year by year due to decrease in
the profits and more dependence on external finance. It clearly highlights the tendency of the
company; to rely more on the external sources of finance as compared to the internal sources.
Moreover the Company had utilize its whole profits in business expansion except 2013-14. II
addition to it, the company has invested more in fixed assets during 2011-12 as compared to the
previous years.

Franchise Management Process

Steps of Choosing Franchisee Owner
Activity

Inputs

Output

Who by

31

Control

Notes &

points

Templates

o City Market
study

1 Market

o Market

o BD &

Analysis
o Competitor

Estimation

analysis
o Market

o List of

analysis
o Competitor
Analysis

o Data not old o Market analysis

Marketing
deptt. AIS
Auto &

AIM
o Selection o Insurance tie-o City and location

selected

committee

cities along

comprises:

with the no.

BD,

ups No. of

cities/towns
and location

center

existing
franchisee,
Supply

Services

availability

Auto ARG

(glass),

Head

selection criteria

centers/ city,
o Impact on

of centers
Marketing,
o Location for
COO-WE
opening
COO-auto

2 Selection of

than 2 years

o Catchment
area,
o Distance

o List of short o Offer lettero BD &

Listed Cities

to existing

marketing

Along with the

franchisee

& existing

no of centers

Franchisee

3 Offer to

from depot
o Schedule foro If existing
agreement

franchisee agrees
go to step 7.
o Not agrees step 4.
o Along with offer
letter, process of

Exixting

identification of

Franchisse

potential franchisee
(step 5 should be
followed).
o Offer letter to be

attached
4 Inviting o Reference
o List of
o BD &
o Reference o Selection criteria
o
application
from AIS
prospective Marketing
criteria as per
o Generating
o Advertisement
from
franchisee
& AISchecklist
reference
32

in newspaper
o Through

ARG &

consultant
prospective
o Through
Franchisee
website
o Contacts and

o Minimum 4

control

Reference/cit

Center

referrals

Findings
The present work has been undertaken to analyze and assess the working Capital Management
Of SHEILD AUTO GLASS LIMITED DELHI. The analysis has been carried out in terms of
33

Financial Structure, Inventory Management, Receivable Management and franchisee making

process and the payment system, accounting system followed by the company. The analysis also
includes the tests of liquidity, tests of solvency and tests of profitability. There are some of the
findings and suggestions, which emerged during the course of study. These findings and
suggestions are discussed as below:

A. FINANCIAL APPRAISAL FINDINGS

The findings have been divided into various sections, which are as under:
The main strategy of the company is to develop- Indigenous technology and contribute to
pool of technological development to improve self-reliance. The recent example in the case
of company is introduce of placing cool air glass.
During the year 2010-11 and 2013-14 , due to development programs, the companys
reliance on external sources or funds of finance grew i.e. the company became more
dependent on loans and advances from banks, financial institutions etc. This means the
company is in a sound position in case of sources of finance.
The current ratio and acid-test ratio of the company reveals that from the liquidity point of
view the compony is not in a sound position.
The decrease in the Inventory Turnover Ratio from 22.2 in 2010 to 12.5 in 2014 and a
Increase in the Inventory Holdings Periods from 15 days in 2010 to 29 days in 2014 reveals
more blockages of funds in inventory and inefficient inventory management require some
more some more attention to financial difficulties in the long run.
The proportion of current assets to fixed assets is increasing. It means less investment which
is not good from the point of view of profitability.
The Debit-Equity Ratio of the company ranges from 1.48 to 3.51 Overall, the ratio has
increased from 1.48 in 2011 to 3.51 in 2013. This shows the weak financial position of
the concern.
The debt-equity ratio has been increased year by year due to decrease in the profits and
more dependence on external finance. It clearly highlights the tendency of the company;
to rely more on the external sources of finance as compared to the internal sources.
Moreover the (Company had utilized its whole profits in business expansion except 200910 and 2010-11.II addition to it , the company has invested more in fixed assets during
34

2006-07 as compared to the previous years. Company is more depend on external sources
of finance.

THE PROCESS FOLLOWED FRANCHISING FOLLWED BY Shield Auto

glass ltd
1. The company should analyze the market (the four wheeler market) and should also look
for the opportunities available in after sale services.
2. After market analysis the second step is of selecting location (city). Location is selected
on the basis of market analysis and competitor analysis.
3. After this, applicant has to fill the prequalification form and submit their Assets Check
List and P/L Account of the existing business if any.
4. In this step interview will be conducted, consecutively a ranking list will be prepared.
5. In the final stage agreement between the company and the franchisee is signed.

Suggestion
Financial
Inventory management of the company needs more attention, as the products and rating are huge
in numbers. The company should employ VED analysis for the raw materials and spares. The
company makes use of Economics Order Quantity to minimize cost of ordering and also redetermine the re-order level, Maximum stock levels from time to time.
The company should improve its Absolute Liquidity Ratio otherwise the company would not be
able to make interest payments or to meet operating expenses. The company should try to
minimize its investment in inventory in order to reduce the carrying cost.
The undertaking of selling and distribution expenses by the company on its own has resulted in
the decline of net profits. Therefore, to recover the amount of selling, expenses the selling price
35

per unit of the products of the company should be raised so that the company may sustain its
profitability and minimize the man power as maximum as possible.
Average Collection Period is to reduce to its minimum by speeding up collections. So, by strict
the stringent credit policy, if the collection period is slightly decreased with a view to push up the
sales, it would prove to be more profitable for the company.
Reducing the cost of goods sold can increase the profitability of the concern. A gross profit of the
concern is depended upon the costs of goods sold. If the amount of cost goods sold is reduced,
the Gross Profit is increased automatically. And with the increase in gross profit, the net profit of
the concern is also increased.
To sum up, the company not enjoys a sound position in terms of its liquidity and had not been
maintaining a satisfactory profitability position till 2007-08. In fact, the decrease in gross profit
is a negative indicator of the companys working. The fall in net profits is primarily a result of
the company having undertaken its selling and distribution expenses. If there are effectively
checked and recovered as suggested earlier, it will benefit the company, creditors, investors,
consumers and the public at large in the long run.
Franchisee
Company should train the employee of the franchisee time to time.
Company should make some changes in the process of making the franchisee.
*Assisting in location and buildings the full set up.
*Taking review on a fixed period.
Company should make more efficient their payment system.
Company should appoint a manager to manage the activities of the franchisee.

36

Conclusion
FINANCIAL
The companys liquidity is not up to the mark.
Inventory turnover ratio is continuously increasing that is a good sign for the companys
inventory management is improving.
In Ratio analysis it was found that Debt Equity ratio of the company is continuously
increasing due to the loss of the company. In recent two years loss has decreased but still
company is in loss it means companys administration expenses are very high. It states that
there is more human power than the requirement.
FRANCHAISE
The company should analyze the market (the four wheeler market) and should also look
for the opportunities available in after sale services.
After market analysis the second step is of selecting location (city). Location is selected on
the basis of market analysis and competitor analysis.
After this, applicant has to fill the prequalification form and submit their Assets Check List
and P/L Account of the existing business if any.
In this step interview will be conducted, consecutively a ranking list will be prepared.
In the final stage agreement between the company and the franchisee is signed.

37

Bibliography
Books
Grewal T.S, 2013, Double Entry Book Keeping, 2013 edition, Sultan Chand & Sons (P)
Ltd, Dariyaganj,(New Delhi)
Beri G.C. Marketing Research, Fourth Edition , Tata McGraw Hill Education Private Ltd
(New Delhi)

Journals
Verbieren Sofie, Martine Cools & Alexandra Van den Abbeele, 2008,
Franchising: a Literature Review Management and Control Issues, 2-13
.Larty Joanne(Lancaster University Management School), 2010,

Contribution of franchise research to entrepreneurship: a review and new

opportuinities,3-13
Internet
http://www.windshieldexperts.com/content/about-auto-glass-companies-india
http://www.windshieldexperts.com/content/car-glass-repair
http://www.windshieldexperts.com
https://www.linkedin.com/company/shield-autoglass-limited

38

BALANCE SHEET
As at 31st March,2014
(Amount in Rs)

BALANCE
SHEET as at
31st

As at 31st March,2013
(Amount in Rs)

March

2014
Share

holders
funds
Capital
Loan Funds
Secured loans

1,83,33,000

1,83,33,000

Unsecured

1,72,11,673

1,79,25,540

3,29,61,935

3,45,10,000

Loans
5,01,73,608
Total Funds

5,01,73,608

,24,35,540

6,85,06,608

5,24,35,540
7,07,68,540

Employed
Application
of Funds
Fixed Assets

Gross Block

2,97,74,191.02

2,76,41,586.00

Less:

1,22,42,334.92

1,77,09,817.00

Depriciation
1,75,31,856
Deferred Tax D

1,75,31,856
65,37,732
39

1,77,09,817

1,77,09,817
73,95,749

Assets
YEAR 2013-14

Current Assets, Loans E

& Advances
Inventories

42,01,061

33,05,225

Sundry Debtor

1,48,17,157

1,50,64,116

15,34,470

34,58,127

1,15,40,370

1,01,10,578

3,20,93,058

3,19,38,046

Provisions
Current Liabilities

2,71,34,956

2,13,52,645

Provisions

13,38,693

19,24,836

2,84,73,649

,32,77,481

Cash

and

Bank

Balances
Loan and Advances

Less:

Current F

Liabilities

And

Net Current Assets

36,19,409

86,60,565

Profit

4,08,17,611

3,70,02,409

6,85,06,608

7,07,68,540

and

Loss

Account
Total Funds Utilised

40

Year 2012-13
BALANCE

SHEET

as at 31st March,2013
As At march,2013
(Amount in Rs)
Share Holders Funds
Capital
Loan Funds
Secured Loan
Loan
Total

A
1,83,33,000

1,79,25,540
3,45,10,000

5,25,39,031

7,07,68,540

7,08,72,031

C
2,76,41,586
99,31,769

Deferred Tax Assets

D
Current Assets, Loans E
And Advances
Inventories
Sundry Debtors
ash & Bank Balances
Loan And Advances
Less:

1,83,33,000
B

Funds

Employed
Fixed Assets
Gross Block
Less: Depreciation
Net Block

As At March, 2012
(Amount in Rs)

2,67,80,133
79,78,535
1,77,09,817

1,87,71,598

73,95,749

77,93,440

33,05,225
1,50,64,116
34,58,127
1,01,10,578
3,19,38,046

61,95,964
2,34,29,898
53,01,612
1,07,31,641
4,56,59,115

2,13,52,645
19,24,836
2,32,77,481

3,37,35,121
10,72,660
3,48,07,781

Current F

Liabilities
Provisions
Current Liabilities
Provisions

&

Sources: Compiled from the annual reports of the company.)

41

Market Analysis
City Market Study
Activity

Deliverable

Responsibility

Parc Size

RTO Data

42

Market analysis

Breakage rate

Data from F & S Study

Market Size

WE, Auto ARG

Segment Wise sale data

AIM

Area wise parc size

RTO Data

% of sale b/w authorized & AIS Auto, AIM

non authorized dealers
Existing price band
Competitor analysis

43

WE

Market Analysis

Deliverable

Pcs

Value

Source

Parc Size

42500

191250000

RTO

Breakage rate

11%

Market size

4675

F & S study

21037500

WE, Auto ARG

Competitor Analysis
Deliverable
Existing

Authorised

Non Authorised

Sources

Santro

Authorised/Non

Alto

Authorised Dealer
Authori Auised Dealer

Indica

Authorised/Non

Honda City

Authorised Dealer
Authorised/Non
Authorised Dealer

44

Services Offered

Authorised

Non Authorised

rces

Quality Offered

Glass

Non Genuine

Genuine

Non

Genuine

Genuine
Brand of Sealant

Time

frame

complete job(hr)

to
1-2

2-3

1-2

45

2-3

Mobile Services
Mobile charges
Insurance Tie-up
TIE-UP

SELF

TIE-UP

SURVEY

SELF

SURVEY

National
Assurance Co.
New
India
Insurance co.
Oriental inurance
Tata Aig
Iffco-Tokio
Reliance
Bajaj Allianz
ICICI Lombard
Royal Sundarum
Cholomandalam
Future Generali
Warranty

Selection of City

Selection Of City
Particulars
Total Market Size
Insurance Tie-up(%)
Insurance Market Share(%)
Company Name
National
United India Assurance
New India Assurance Co.
Oriental Insurance co.
Tata- Aig General Insurance ltd.
Iffico-Tokio General Insurance ltd.
Reliance General Insurance ltd.
Bajaj Allianz General Insurance ltd.
Reliance

Pcs
652095
Market Share %

46

Value
2934427500

Bajaj Allianz
ICICI Lombard
Royal Sundarum
Cholomandalam
Future Generali
No.of center required
Sourcing & Supply chain
Distance form depot

Upto 50 KM
50-150
Beyond 150
Upto 50000

Minimum Order Qty

50000-100000
Above 100000
Same Day

Order Turn Around time

Weekly
Fortnightly
Monthly

Selection of Location

AREA-A

AREA-B

Parc Size
Traffic Flow
Municipal Regulation
Traffic Regulation
Environmental Regulation
Infrastructure Development

47

AREA-C

REMARKS

Kind of Franchisee required

1

Spare Parts Dealers

Non Authorized Workshop Owner (with in distribution chain)

Float Glass
Selection Criteria

Profile of Independent Franchisee

Minimum Selection Criteria

Gender:

Male/Female

Age:

25-50

Citizenship:

Indian or minimum 5 years of stay in India

Required

Language Know:

Local language and Hindi or English

48

Minimum Qualification

10+2

Background:

*Knowledge of local market

Work Experience:

*Owned house
*Minimum 5 years required

*Work experience related to service Industry

8

Financial Requirement

required
PAN card or Income Tax return required

Minimum Investment capability:

10-15 Lakhs

10

Source of Investment:

Cash

11

Time to open a Center:

1 Month

Generating Reference
1.Reference From AIS
Potential Franchisee Information
Particular

Remark
AIS

Vendor Name
Address
Contact No.
Asahi approved Vendor

YES/NI

Market Reputation

GOOD/NOT GOOD

49

from

Can WE appoint same dealer as

franchisee partner

YES/NO

1. Contact And referrals

walkin customer
Reference from existing franchisee
2. Through Website
3. Through Consultant
4. Newspaper advertisement

50

51

Property Report
No.
1

Particulars
Area(please

Description
Tick)(width,

Depth,

Height) for normal center (Approx.

500-800 Sq Ft)
2

Location
(Exact

Excellent
Address,

Road,

Good

Poor

Traffic,

Visibility from Main Road, Easy

Access,
3

Distance

from

existing

center, If any)
Infrastructure Check

Check Mater plan(New Construction, new

road plan, flyover plan)
Traffic Flow

Capacity (No. of cars)

Height of Property from ground

(Space Available in front)

Space for glow sign Board (20*4)ft

Mezzanine floor

Parking Floor

Land Mark (Please Specify)

10

Requirement of structural changes

11

Provision for Toilet

12

Legally Viable

13

Provisions for Electricity

14

Photograph (Property)

Existing Business Details

52

Current Business Details

Approx. Turnover

No. of Employee/Staff

Managed By Owner/Others (Pls Specify)

Maintenance of standard procedures for

Existing Business?

Why We?

Availability to develop WE Business & Brand

& Maintain Standards

Market Potential & Characteristics of Market

Center to be Managed by (Self/other) please

specify

P/L Account

53

Independent Franchisee A/C

Year1

Year 2

Year 3

Year 4

Year 5

500000

625000

800000

100000

180000

225000

281250

360000

450000

180000

225000

281250

360000

450000

year 1 and 7.5% from 20000

37500

46875

60000

75000

Average

sales

per 400000

month

Gross Margin @ 45%

Gross Profit
Payment to WE per
month

Royalty@ 5% sales in
year 2 onwards

Fee @ 551500 for 5

years(500000+service

9192

9192

9192

9192

9192

tax)
Rent
Manpower
Admin

35000
25000
25000

35000
27500
27500

35000
30250
30250

35000
33275
33275

35000
36603
36603

Total Expences
Net Profit

114192
65808

136692
88308

151567
129683

170742
189258

192397
257603

Franchisee Profile
Profile of Independent Entrepreneur

Genreral Information
Name:
54

Address:
Contact no:

Mobile no:

Gender:
Age:

Marital status:

Citizen ship:

Langauge Known:
No of Dependants:

Education
Level

Qualification

Name & Address of

institution

School
Graduation
Post Graduation
Other
Employment
From

To

Employment Name

Business
Company Name

Address
Owner %
Established Since
Nature of
Business

55

Number of
Employees
Annual
Profit(Rs.)

Interview
Franchisee Interview Questionnaire

What do you do?

From how long you are living in this location?
How long you have been looking for business?
What do you know about windshield experts?
What attracts you towards this business?
What did you like most about your business or job?
How your past experience will be helpful in the business?
Would you be involved in this business on a full/part time basis?
Do you have previous Franchise experience?
How much return you are expecting from the business?
Would your family or friends be involved in your business?
How soon do you want to start your business?
What are your expectations from WE?

56

Ranking Procedure

Ranking Procedure
Particular

Criteria

Weightage

Location:

Distance from catchment area

Point 25

<1 KM

<2 KM

2
1

Financial Status:

<3 KM
IT Returns for last 3 Years

Points 25

More than 5 lacs

More than 3 lacs

More than 2 lacs

2
1

Source of Investment:
Point 25

Loan

Cash Available

Time frame to open center:

Point 25

Less than 22 Days

More than 22 Days

Interview Feedback:

Excellent

Point 25

Good

Average

2
1

57

Total Points

58