Levis Research
I Archana. R. Gorur of 5thB.com (h) was working as an intern in Levi’s Strauss India Ltd. (LSIL) for duration of 6 weeks from april 16th to may 31st 2012. I was working in the finance department in the accounts receivables section. i have done the following work in the company * Reconciliation of shortages * Dilution Expenses (Sales support) * Hybrid rent * EOSS * Additional Margin * Fixed Support * Promotional Schemes
While doing the reconciliation of shortages I learnt that BAJAJ Alliance does the insurance work of the company and any shortages which occur during the sales to customers are settled by BAJAJ Aliiance. The customer claims the shortages from the insurance company but Bajaj Alliance reimburses the claim up to a certain limit that is amount exceeding Rs.44660 and below Rs.2500 (Till may 2011 the insurance company processed claims above Rs.25000 and below Rs.2500). Dilution means the sales related expenses in which I mainly worked on hybrid rent and additional margin.
There are two kinds of customers of LSIL. * Distributors * Franchisee
The franchisee sells directly to the customers and the distributers sell to the sub-franchisee and the sub-franchisees sell to the customers.
Hybrid rent and additional margin is the support the company gives to its franchisee and sub-fanchisee. Hybrid rent is the rent paid by the store to the landlords every month. The company reimburses them the rent to support newly opened stores to meet its other expenses. Additional margin is given up to a limit of 35-40%. The amount of hybrid rent is escalated every 1-3-5 years by 5-10-15% or as agreed by the two parties. The company pays the rent monthly.
The company operates at a margin of 2%
The approx. calculation is as follows *CST is applicable when LSIL is billing to the franchisee and customers located outside Karnataka.
* VAT on accessories is 14%.
INTRODUCTION
LEVI GROUP
It was established in 1853
While doing the reconciliation of shortages I learnt that BAJAJ Alliance does the insurance work of the company and any shortages which occur during the sales to customers are settled by BAJAJ Aliiance. The customer claims the shortages from the insurance company but Bajaj Alliance reimburses the claim up to a certain limit that is amount exceeding Rs.44660 and below Rs.2500 (Till may 2011 the insurance company processed claims above Rs.25000 and below Rs.2500). Dilution means the sales related expenses in which I mainly worked on hybrid rent and additional margin.
There are two kinds of customers of LSIL. * Distributors * Franchisee
The franchisee sells directly to the customers and the distributers sell to the sub-franchisee and the sub-franchisees sell to the customers.
Hybrid rent and additional margin is the support the company gives to its franchisee and sub-fanchisee. Hybrid rent is the rent paid by the store to the landlords every month. The company reimburses them the rent to support newly opened stores to meet its other expenses. Additional margin is given up to a limit of 35-40%. The amount of hybrid rent is escalated every 1-3-5 years by 5-10-15% or as agreed by the two parties. The company pays the rent monthly.
The company operates at a margin of 2%
The approx. calculation is as follows *CST is applicable when LSIL is billing to the franchisee and customers located outside Karnataka.
* VAT on accessories is 14%.
INTRODUCTION
LEVI GROUP
It was established in 1853