Levis Research

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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 by Levi Strauss, Levi Strauss & co, USA (LS & Co). it is one of the world’s largest leading branded apparel companies with sales in over 160 countries. The Levi group designs and markets jeans as well as casual and dress pants, tops, jackets and related accessories for men, women and children under the Levi’s, Dockers, and Signature by LS & Co brands. LSIL

It was incorporated on 31st march 1994 as part of Levi group as a wholly owned subsidiary of Levi Strauss Mauritius Limited (Levi Mauritius). LSIL primarily engaged in marketing and distribution of apparel under Levi’s, denizen and Signature brand names in Indian market. Levi's® opened their first store in Bangalore in Jun 1995. Over the last 15 years, Levi's® has become the largest and most iconic jeanswear brand in the country, available in approximately 270 exclusive stores, and 500 other points of sale, across more than 200 towns across India. Closely associated with the evolution of jeanswear fashion in India, Levi's® has been responsible for some of the most cutting-edge, definitive, jeanswear communication India has seen. Levi's® holds the unique distinction of having won the prestigious Images Fashion Award for the "Most Admired Jeanswear Brand of the Year" for six years in a row. With a product range that spans everyday-wear to extremely evolved, fashion-forward products, Levi's® has been one of the primary catalysts in accelerating the coming of age of the Indian fashion scene. The Levi's® range in India includes the iconic Levi’s® 501® Jeans, Levi’s® Red Tab™, and Levi’s® Diva, amongst others. The Levi's® brand has big plans for its future in India, and is committed to firmly placing India on the world map in terms of jeanswear consumption and creation.

PROFILE OF THE ORGANIZATION
LSIL was set up in Bangalore, as an indirect subsidiary of LS & Co. LSIL is mainly engaged in the marketing and distribution of apparel and garments under the various brands of LS & Co. LSIL has...
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