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Report on:-Report on:-
A PROJECT SUBMITTEDA PROJECT SUBMITTED
TO BHAVNAGAR UNIVERSITY OF BHAVNAGARTO BHAVNAGAR UNIVERSITY OF BHAVNAGAR
IN PRACTICAL FULFILMENT OFIN PRACTICAL FULFILMENT OF
THE DEGREE OFTHE DEGREE OF
BACHELOR OF BUSINESS ADMINISTARTIONBACHELOR OF BUSINESS ADMINISTARTION
PREPAREDPREPARED BYBY GUIDED BYGUIDED BY
DHAVAL K. DHRANGADHARIYA Miss. DHRUTI PANDYA
S.Y B.B.A LECTURER:- DHRUTI PANDYA
ROLL NO: 246
BATCH: 2008-2011BATCH: 2008-2011
73
C A N D I D A T E ’S C A N D I D A T E ’S S TA T E M E N TS TA T E M E N T
My self DHAVAL K. DHRANGADHARIYA, the
student of S.Y. B.B.A. here by declare that the project
work presented in this report is my own work and I
have completed it under the guidance of Miss.
DHRUTI PANDYA of “SWAMI SAHJANAND COLLEGE OF
COMMERCE & MANAGEMENT – BHAVNAGAR”.
BHAVNAGAR
DATE:
SIGNATURE:
Full Name: DHAVAL K. DHRANGADHARIYA
Principal
- - - - - - - - - - - - - -
73
PREFACEPREFACE
havnagar University has started certificate course in administration called
B.B.A (Bachelor of Business Administration) for the purpose of knowledge
about business. So, I have taken the industrial training of NAVBHARAT STEEL
RE - ROLLING MILL and take the practical knowledge of business and as give us
training in the company I have made report/project as per my knowledge.
B
Management studies are like a coin, which has two sides, one is
theoretical knowledge and other is practical knowledge. A classroom teaching
gives the theoretical knowledge while industrial training gives an opportunity to
take knowledge of practical aspects. In this era of globalization where every
moment the world is moving one-step ahead, so for a management student
practical knowledge has become a key to success.
According to our syllabus prescribed by BHAVNAGAR UNIVERCITY, I
have finished my practical study. With a great zeal and gaiety, I put this report
before you. I have presented information of four subjects according to S.Y.B.B.A.
syllabus. This report is reflecting of which I understood and studied in this report
and how I collected the information. I have tried my level best to present
information regarding NAVBHARAT STEEL RE - ROLLING MILL.
For this purpose I had visited “NAVBHARAT STEEL RE - ROLLING MILL”
at Sihor, near Bhavnagar.
73
ACKNOWLEDGEMENTACKNOWLEDGEMENT
am very glad here to submit my project report. I have presented a report on
STEEL RE-ROLLR MILL industry and I have put my best efforts to prepare it
in a realistic manner and include all necessary information, which can give a clear
picture of STEEL RE-ROLLING industry management.
I
I am very thankful to all the senior executives and other staff members of
NAVBHARAT STEEL RE - ROLLING MILL to give me very well support, co-
operation and help me with whatever was needed in my project.
And how can I forget my respective principal Miss. Shilpamadam Bhatt
and our project guider Miss. DHRUTI PANDYA of “Swami Sahajanand College of
Commerce and Management” to provide us with this very important training,
which develops management skill in us.
I hope this report will give a realistic and clear picture of STEEL RE-
ROLLING industry management. Thanks once again to everyone who has
directly or indirectly helped me through this training and prepare this report.
NAME: DHRANGADHARIYA DHAVAL K.
CLASS: S.Y.B.B.A.
ROLL NO: 246 (TWO FOUR SIX)
73
C o n t e n t
SR NO. PARTICULAR PAGE NO
1GENERAL
INFORMATION6
2HUMAN RESORCE
MANAGEMENT22
3MARKETING
MANAGEMENT43
4FINANCE
MANAGEMENT55
5 BIBLIOGRAPHY 73
73
73
C o n t e n tSR.
No.PARTICULAR
PAGE
No.
1 INTRODUCTION 8
2 History And Development 9
3 Profile of the company 10
4 Size of the unit 11
5 Form of the organization 12
6 Manufacturing products 14
7 Manufacturing process 15
8 Organization structure 18
10 Time keeping system 20
11 Employee Service 21
INTRODUCTIONINTRODUCTION
73
have completed my industrial training in NAVBHARAT STEEL RE -
ROLLINGS MILL for the practical knowledge as part of management and
general information of the industry, in that HUMAN RESORCE MANAGEMENT,
MARKETING MANAGEMENT, FINANCE MANAGEMENT & BIBLIOGRAPHY.
I
NAVABHARAT STEEL RE - ROLLING MILL has improved its goodwill by
increasing quality of products. NAVBHARAT STEEL RE - ROLLINGS MILL is
one of the fastest growing and Moving Consumer Goods (FMCG) & Over the
Counter (OTC) product manufacturing company in market. It has also given
tough competition on local market as well as in state market. NAVBHARAT
STEEL RE - ROLLING MILL products are sold under highly competitive
conditions. It offer handsome returns to their distributors & stockiest with grace.
A Rolling Mill is a machine for factory shaping steel by passing it between
ROLLING. This company’s product is used by infrastructure development and
engineering unit which is initials above the development of any of the nation for
economical development. So, it is clear that the unit have bright future.
The company manufactures these products that are as under,
M.S.FLAT BAR
M.S.ANGLE BAR
M.S. ROUND BAR
M.S. SQUARE BAR
HISTORY & DEVELOPMENT OF THE UNITHISTORY & DEVELOPMENT OF THE UNIT
73
AVBHARAT STEEL RE - ROLLING MILL Established in the year 1994
having the purpose to manufacturing various products of steel bars. The
production of the company has started with the help of single rolling mill is that
with 7 stands with and also with well furnished.
N
Than, in the year, 1999-2000 company has installed another set of
machinery with further develop with the production of M.S. Angle, M.S. Flat,
Square and Round Bar and also produce various sizes bars like 6, 8, 10, 12, and
16. Initially production of the unit was 4000 increased capacity the company has
got ISI mark and ISO 9001-2000 certificates.
PROFILEPROFILE OFOF THETHE COMPANYCOMPANY
73
The NAVBHARAT STEEL RE ROLLING MILL, the main & register
office is in Bhavnagar. This unit has not separate zonal office.
NAME NAVBHARAT STEEL RE-ROLLING MILL
ADDRESS
FACTORY
SURVEY NO. 268/1
RAJKOT- BHAVNAGAR HIGHWAY
SIHOR – 364 240
DIST. BHAVNAGAR (Guj.)
ADDRESS OFFICE
12, SAGARDEEP
LOKHAND BAZAR
BHAVNAGAR. – 364001
MANAGING
DIRECTORBHAGIRATHSINH SARVAIYA
PRODUCTION
HEADAJAYSINH
BANKER STATE BANK OF SAURASTRA
PHONE NO. (O)3014758,3014241 (W)(02846)223283
ACCOUNTING
YEAR1-APRIL TO 31-MARCH
WEB SITE WWW.NAVBHARATSTEELRE-ROLLING.ORG
E-MAIL ADDRESS [email protected]
COMPANY LOGO
QUALITY
BECHMARK
SIZESIZE OFOF THETHE UNITUNIT && FORMFORM OFOF THETHE ORGANIZATIONORGANIZATION
73
Size of the unit means, how much the investment of company and how
much the turnover is. According to Indian government rules or say policy, this is
recognizing by the government.
There are mainly 3 types (scale) of industries:
1. SMALL SCALE: - Investment is up to Rs. 100lakh.
2. MEDIUM SCALE: - Investment is between Rs. 100lakh - 150lakh.
3. LARGE SCALE: - Investment is more than Rs. 150lakh.
According to Indian government rules NAVBHARAT STEEL RE ROLLING
MILL is small-scale industry, because the investment is more than Rs.100lakh.
FORMFORM OFOF ORGANISATIONORGANISATION
There are various types of organization structures are as under.
SCALE
Small Scale Industry
Medium Scale Industry
Big or Large Scale Industry
Total investments up to Rs. 100 Lakh
Investment is Between Rs. 100 Lakh to 150 Lakh
Investment is more than 150
Lakh
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Sole Proprietorship :- ‘‘Sole proprietorship is form of business
organisation in which an Individual introduces his own capital. Uses
his own skill and intelligence in the management of its affairs and is
solely responsible for the results of its Operation.’’
Partnership:- The relation between people who has agreed to share
profits of a Business carried on by all or any of them acting for all.
Joint Stock Company:- Legally the joint stock company is an artificial
person created for Carrying of some business by an association of
persons. It assets that a Company has a legal entity of its own in the
sense that it has powers and Characteristics determined by the
provisions of law and conversions of Law and a constitution framed in
accordance with them.
Co-operative Organization :- Minimum 2 & Maximum 10
Government department( Public Enterprises) : - Public undertaking
that is directly under the control of the minister
Public Corporation : - Public corporation is a form of organization
especially established for public welfare.
Government Company:- Gov. Company is a company where in 51% of
shares held by the Central Government and a State Government
jointly.
Form of organizations means whether the company is Sole Proprietor Firm
or Partnership Firm. Here NAVBHARAT STEEL RE ROLLING MILL is a
Partnership Firm. The reason to choose the Partnership Firm is the investment; is
73
not to be done by only the single person and also an idea is not of the one
person.
According to Indian Partnership Act 1932, “When two or more persons
make an Agreement to start a business & share profits & loss of the business
can stated as Partnership Firm.”
As NAVBHARAT STEEL RE ROLLING MILL is a Partnership Firm it
produces so many products and it is not possible in Sole Proprietor Unit.
CHARTCHART
MANUFACTURING PRODUCTS
FORM
Sole Proprietorship
Private Limited Company
Co-OperativePartnership Public Sector Unit
Only One Owner
Minimum 2 & Maximum 20
Minimum 2 & Maximum 10
Minimum 2 & Maximum 50
Minimum 2 & Maximum 100
73
NAVBHARAT STEEL RE ROLLING MILL producing main four types of
bars M.S. Angle, M.S. Flat, M.S. Square & M.S. Round bar this is in various size
produced by the company.
MANUFACTURINGMANUFACTURING PROCESSPROCESS
73
AVBHARAT STEEL RE - ROLLING MILL Pvt. Ltd. are produce so many
products like M.S. Angle bar, M.S. Flat bar, M.S. Round bar & M.S.
Square bar etc… the process of manufacture steel by RE-ROLLING MILL is
understand very deep and stage wise explain as below.
N
(1) Purchase Raw Material
(2) Cut the plat
(3) Give hit at high temperature
(4) Passing the rolling
(5) Packing
(1) Purchasing Raw Materials:-
The basic requirement is purchasing raw material for manufacturing the
products. The basic raw material is M.S. Billets, M.S. Ingots, M.S. Bar
IS: 2830 is over basic raw material.
(2) Cut Plates :-
Purchased raw materials have been cut in the required size and weight. If
it has not being cut in the fixed size then the out put of bar is not match to
desired size if we are going to sale that product then no any value of it.
Hence, in market accuracy of size of bar must be required.
(3) Furnace the Plates :-
That cut plates are heated up to the required
temperature in chamber running by lignite coal. From
the hot metal, that is easy to make bar by rolling. We
can give easily shape to the bar from metal alloy.
(4) Passing into Rolling :-
73
The hot metal is then entered into rolling stand where
rolls are fitted according to the required size and type of
the final product.
(5) Packing :-
After passing through the six rolls which are fitted in the rolling
mill established accordingly we get the required size of final
product. After that final product has been prepared as the
workers take the weight and cut that bar in accurate size and
weight, after that the workers are going to pack the product for selling to the
retailer. They paint any of the colour at the bottom and tide up a strip of company
looking like a tag to give attractive look. This is the marketing scheme.
Moreover it is note that this process is carried out under supervision of
three experienced persons. The entire process is being repeated in the same
time table.
This process has been shown in the chart. So, this can be easily
understood.
CHARTCHART OFOF MANUFCTURINGMANUFCTURING PROCESSPROCESS
73
ORGANIZATION STRUCTURE
PURCHASING RAW MATERIAL(M.S. Billets/ M.S. Ingots, M.S.
Bars)
Breaking Plates in Required Size
Pieces of billets & Ingots heated in furnace at required temperature
Hot pieces of Metal entered in to rolling mill stand
After passing hot pieces of metal through rolling mill stand
For Achieving Final Product & Packing
73
TOP LEVEL
MIDDLE LEVEL
BOTTOM LEVEL
enerally, the organization structure mainly depends upon the size & the
form of the company. The organization structure of NAVBHARAT
STEEL RE - ROLLING Mill’s organization structure is very good. The
NAVBHARAT STEEL RE ROLLING MILL Organization structure is divided into
three levels.
G
Top levelTop level
Middle level Middle level
Lower levelLower level
ORGANISATION CHART
TOPTOP LEVELLEVEL:
73
TOP LEVEL MANAGEMENT mainly consists of Board Of Director, Chief
Executive, Managing Director Etc... They manage the whole business unit & take
decision about right policy, business promotion, legal provision & all liabilities of a
business unit. They also look after Human Resource Management, Marketing
Management as well as Finance Management of company.
In NAVBHARAT STEEL RE-ROLLING MILL Company in Top Level
Bhagirathsinh G. Sarvaiya. He is director of the company.
MIDDEL LEVELMIDDEL LEVEL:
MIDDLE LEVEL MANAGEMENT is the link between the Top Management
& The Lower Management. It consists of function like production, sales account &
personnel officers. They are experts of specific field and try to accomplish work
by preparing programs for different section.
In NAVBHARAT STEEL RE ROLLING MILL, the Middle Level
Management consists of finance head, production head, and sales
representative.
LOWERLOWER LEVEL:LEVEL:
Generally, BOTTOM LEVEL MANAGEMENT of Jobbers, Workers,
Foreman etc...These people are important to the company as they are persons
who produce the different products of the company, which the company
producing on the Large Scale.
In NAVBHARAT STEEL RE ROLLING MILL industry, the Bottom Level
consists of many workers who take the guidelines from Middle Level, who is
instructed by the Top Level. The following chart shows the organization structure
of the company.
TIMETIME KEEPINGKEEPING SYSTEMSYSTEM
73
Time keeping system is very important for each and every person
organized for any small or large scale unit. It is basic
requirement of all units. If we want to be success in our
business we need to be very time punctual system. The
organization can obtain there goal if they are working in a time
system set by the firm.
Time is very important in business and also our life one times its goes than
they never return. In the same way NAVBHARAT STEEL RE ROLLING MILL is
very strict in this matter. The manager director of the unit is very conscious that
he reaches in time. So, its employees and workers needs to reach at firm in time
or before time but should not be late. The unit has been runner in a single shift
only but if the demand of product is increased and if they are to be sent earlier
than they go for two shift also. The regular shift is only one shift and the time is
10:00 P.M. To 6:00A.M.
It does not allow to workers, visitors or trainees to enter without the
permission of higher authority and they keep attendance register for the record of
its employees. The employees have to signed into that register when they enter
in NAVBHARAT STEEL RE ROLLING MILL and when they leave the unit.
The attendance register has been checked by the manager and it any loop
poles are there they are rectified and checked upon.
EMPLOYEEEMPLOYEE SERVICESSERVICES
73
n any industry, employees plays an important role for running business
successfully. It is a well known proverb or also well provides that “If you
manage your employees, employees will manage your firm”. Employees work in
lower level management, but if they are not in business then company are not
going to produce any product. It is, therefore necessary for manager to give much
attention to the employee. The management should provide better service to the
employees. If employees work better and do more work in the company their
efficiency and morale become high. The Company has to provide various types
of services to their employees. If a manager gives much attention on employees
they will give fully attention in the business and the result is the more profitability
as business increases.
I
Employee services means to take care of the employees. if we see the
most of entrepreneur’s history, who achieves the success they take care of their
employees for E.g. Dhirubhai Ambani used to meet all their employee & ask them
about improvemnent so that all his employee would feel good & part of his
business.
NAVBHARAT STEEL RE - ROLLING MILL Give various benefits provided
to the workers for their welfare. There are no fixed uniform for workers. During
special occasion and festival, the workers are provided with a lump sum of
money.
The company is providing facilities for first-aid and medical services.
The company is also take insurance of every employee.
If in any case any employee needs drawings company provide it.
Company also provides provident facility.
On Diwali festival they distribute sweets to all the employees.
On Uttrayan festival they distribute threat and kites to the employees.
Company also gives tea coupon in certain limits.
They give extra bonus to some worker’s if they had done a good work.
73
73
C O N T E N TC O N T E N T
SR NO.SR NO. PARTICULARPARTICULARPAGEPAGE
NO.NO.
(1) INTRODUCTION 24
(2)DEFINITION OF HUMAN RESOURCE
MANAGEMENT25
(3)ORGANIZATION OF HUMAN
RESOURCE MANAGEMENT26
(4) RECRUITMENT AND SELECTION 27
(5) TRAINING AND DEVELOPMENT 30
(6) JOB DESCRIPTION 31
(7) PROMOTION & TRANSFER POLICIES 32
(8) PERFORMANCE APPRAISAL SYSTEM 34
(9) WAGES & SALARY 35
(10) WORKING OF E.S.I SCHEME 37
(11) PROVIDENT FUND SCHEME 38
(12)GRIEVIENCE HANDLING AT
NAVBHARAT STEEL RE-ROLLING MILL39
(13)COLLECTION BARGEINING &
AGREEMENT40
(14) TRADE UNION 41
(15) PERSONNEL RECORD 42
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INTRODUCTIONINTRODUCTION
uman Resource Management is process of bringing people and
Organization together it tries to secure the best people from group of
people by winning their whole hearted for co-operation. In short, it may be define
as the art of developing and maintaining competent work force to achieve the
goal of an Organization in an effective manner.
H
Now a day for any company, it is important that personnel department
should effectively developed. Effective development of personnel department
helps the organization to accomplish the goal of the unit and its success. Without
co-operation of the people achieve met of goal cannot be done. Personnel
department deals with the planning organizing directing and controlling the
human resource.
There is a famous proverb that “MIND YOUR MEN AND MEN WILL MIND
ALL OTHER THINGS”.
For getting the best out of people they must be managed well. This is
where human resource management (managers) plays at critical role in bringing
gaps between employee expectations and organizational needs by adopting
appropriate human resource strategies and practices.
NAVBHARAT STEEL RE ROLLING MILL is havening a human resource
department in which the manager tries to understand the problem of the
employees. It tries to motivate its employees to work in a better way and with full
energy. They try to maintain unity with the employees.
DEFINITIONDEFINITION OFOF HUMANHUMAN RESOURCERESOURCE MANAGEMENT:MANAGEMENT:
73
ccording to Decenzo and Robbins, “HRM is concerned with the people
dimension in management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. This is true,
regardless of the type of organization government, business, education, health
recreation or social action.”
A
“Human resource management is a management function concerned with
hiring, motivating, and maintaining people in an organization.”
“Human resource management is a process which brings people and
organizations together so that the goal of each one is met effectively and
efficiently.”
ORGANIZATIONORGANIZATION OFOF PERSONNELPERSONNEL DEPARTMENTDEPARTMENT
73
ersonnel management is concerned with people at work and their
relationships with each other. It may be defined as a set of programs,
functions and activities designed to maximize both personnel and organizational
goals. It ensures that the organization attracts and hires qualified, imaginative
and competent people. It involves the establishment of various policies to deal
with employees and to retain them. To this end, it lays out the rules regarding
working conditions, designs appropriate compensation plans, and strengthens
employer employee relations.
P
“Organization is a group of people working together co operatively under
authority towards achieving goals and objectives that mutually benefit the
employees and the organization.”
In the NAVBHARAT STEEL RE ROLLING MILL they have well organized
personnel department. Their organization is functional type and well the decisions
in formations come from upper level. It means top to bottom. It can be under
stand by the chart.
RECRUITMENTRECRUITMENT ANDAND SELECTIONSELECTION PROCESSPROCESS
PERSONAL ASSISTANT
PRODUCTION MANAGER
SALES MANAGER
PERSONNEL MANAGER
ACCOUNTANT
MANAGING DIRECTOR
73
Recruitment, selection and induction are very important part of the human
resource management.
Recruitment:-
“Recruitment is a process to discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measure for
attracting that man power in adequate number to facilitate effective selection of
an efficient working force.”
No fix qualification is required for the recruitment of the workers, because
generally physical labour work is carried out by them.
Recruitment has been regarded as the most important function of the
personnel administration, because if a right people is not selected than also the
firm will not be able achieve their goals or target.
Managerial work is carried out by the supervisor, assistance and the
management directors and to some extent by the executive director. so the
supervisor is recruited by the managing director itself.
NAVBHARAT STEEL RE ROLLING MILL has to recruit other persons
through following reasons:
1. If somebody recommends or obliges anyone then he is recruited
2. If a person has special skills for the job then he is recruited.
3. If employees believe that there will be a shortage of employees in
Future they will recruit employees in advance.
Selection:-
73
Selection is a negative process. It is of the process of differentiating
application in order to identify those with greater likelihood of success in a job.
It is related with securing relevant information about an applicant.
Selection is a process of determining the qualifications, experience, and
knowledge creativity decisiveness for the particular job.
In NAVBHARAT STEEL RE ROLLING MILL the selection and recruitment
is done internally hence they do not have to give any advertisement in the news
paper and also there is no chance for calling people from outside.
In NAVBHARAT STEEL RE ROLLING MILL selection process is as follow:
(1) First to all they take those people who are in contact with NAVBHARAT
STEEL RE - ROLLING MILL employees and mostly the children’s of
employees are taken.
(2) The selection committee will take their personal interviews and if they
pass the final interviews will be taken.
(3) They see their qualification, age, eligibility etc…
(4) Then the selected person will be given his joining date and his time and
his work will be showed.
73
Induction:-
In simple word induction means introduction the new employees are given
general information about the management and the work to be undertaken by
him. In other word induction means when a new employee is been employed
than he has been awareness about his work and rules and regulation.
In NAVBHARAT STEEL RE ROLLING MILL the head of the department
does the induction program. He shows the new employee his job specification its
duties and responsibilities. The supervisor is given the authority to help the
employee and teach him his work with cool and mind and he tries to motivate the
new employee to achieve the targeted goal of the firm.
In the introduction general information rules his work job description are
given to the workers. The new employees are made familiar with other
employee’s supervisor his superior subordinate etc.
TRAININGTRAINING ANDAND MANAGEMENTMANAGEMENT DEVELOPMENTDEVELOPMENT
73
he newly recruited employee needs training and some basic information
about his work. It is a process of teaching the new and present
employees. The basic skill they needs to effectively perform the job it is the
process that tries to improve skills or add to the existing levels of knowledge so
that employees is better equipped to do his present job or a higher level job. It is
a learning process and experience that seeks a relatively permanent change in
an individual that will improve his order ability to do the work.
T
Training is a short term process utilizing a systematic and organized
procedure by which non-managerial personnel acquire technical knowledge and
skills for a definite purpose. It is for a short duration, and is for a specific job
related purpose.
While development is long-term educational process utilizing a system and
organized procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose.
Definition of Training:-
“Training is the systematic modification of behavior through learning which
occurs as a result of education, instruction, development and planned
experience.”
(Micheal Armstrong)
In the same way NAVBHARAT STEEL RE ROLLING MILL gives training
to the new recruited people and tries to explain their work in a very easy way.
The new employees are given training under the higher authority people who
have experienced and knowledge.
JOBJOB DESCRIPTIONDESCRIPTION
73
ob description provide both organizational information means location,
structure, authority and functional organization/information means what the
work is job description describe job not job holders. Job description is not an
assessment, it provides an important base for establishing assessment standard
and activities and objectives.
J
Job description mainly related with management level only. With the help
of job description the managers can get information about job title, range,
department, job duty, reports submitting, location of job, objectives of job, job
responsibility, authority or limitation of decisions, job environment etc…
It is the written statement. The objective of a job the work to be performs
the skills to be needed responsibility to be involving the relationship of the job to
the other job etc…
Definition of Job Description
A job description is a broad statement of a purpose, scope, duties and
responsibilities of a particular job. Job description is the written summary of the
given job, of the various rights, responsibilities and organization relation. Job
description defines job division, duties and responsibilities which help to keep
away the specific job to other job.
In NAVBHARAT STEEL RE ROLLING MILL Company they have a
completely written document of job description and perfect implementation also.
Therefore work for the manager is being very easy and comfortable.
PROMOTIONPROMOTION && TRANSFERTRANSFER POLICYPOLICY
(A) Promotion :-
73
Promotion is the way to motive an employee but this motivation must be
on certain strong base. The basic criteria on which employees are promoted are
as under.
It consider seniority of employee
Qualification opinion
Supervisor’s opinion towards employee
Performance of employee
Extra efforts of work
The term promotion may be explaining an up word advancement of an
employee in an organization to another job which commands better pay, better
status, and higher opportunity, responsibility, and authority better working
environment hour’s rank.
In NAVBHARAT STEEL RE ROLLING MILL there is the policy to give
promotion on the basis of performance & experience. The organization believes
that efficiency of the employee increase along with time and experience. At the
same time quality of work and performance approved is also taken into
consideration. In the company worker has promotion to increment salary bases
so he do work efficient way.
(B) Transfer :-
73
A transfer is a horizontal of lateral movement of an employment from one
job, department shift plant of position to another at the same or another place
where his salary status and responsibility are the same.
Transfer is the movement of employee from position to other. Usually
involving and marked change is the duties responsibilities skill needed or
compensation.
In NAVBHARAT STEEL RE ROLLING MILL there is no transfer policy in
the unit as it is only one production site so there is no question of transferring
employee. Some employee transfer internally For E.G.:- from one department to
other. This is also when some adjustment is to be done regarding the running of
some equipment or adjust the employee who are on leave or are absent.
(C) Demotion :-
Demotion refers to the lowering down the studies, salary and
responsibilities of and employee. It is used as a measure where there are
services branches of duty on the part of an employee when if is after a
preliminary to a dismiss it defines as “The assignment of an individual to a bob of
cover rank and day usually involving lower level of difficulties and
responsibilities.”
In NAVBHARAT STEEL RE ROLLING MILL recruitment and selection are
done very carefully and promotion is also given after same measurement so
there is no caution of demotion. In this industry demotion is happened in very rare
case.
PERFORMANCEPERFORMANCE APPRAISALAPPRAISAL SYSTEMSYSTEM
73
o appraise is to asset the work or value in the content of individual
organization. Performance appraisal is the systematic evaluation of
personnel by the supervisor of those familiar with their performance appraisal is
the systematic way of judgment the relative work of an employee in performing
their task performance appraisal has many different dimensions. It is the
feedback process as well as an emotion process.
T
NAVBHARAT STEEL RE ROLLING MILL performance appraisal system
which helps its employees to overcome some times they are given bonus or
some token for their good performance.
The procedure for performance appraisal is as follows:
1) Established performance standard
2) Communication of performance expectations to employees
3) Measures actual performance
4) Compare actual performance with standards
5) Discuss the appraisal with the employees
6) Initiate corrective actions
In NAVBHARAT STEEL RE - ROLLING MILL having a well managed
performance appraisal of its employee. Each and every department head is given
deviation to work discipline, quality of work, co-operation etc…
WAGESWAGES ANDAND SALARYSALARY
here is big difference in salary and wage; wage is what paid to the workers
who are employed on the contract base. While the salary is paid to the T
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employee of the company like, Executive Directors, Managers, and Supervisors
etc…
WAGE:-
Method of Wage Payment :-
Time Wage System : - In time wage system pay the worker
wage on work time means how much time worker will work. This
wage is pay on time period so this time is a day weak, a fortnight
or a month. In the past wages have been the most common basis
and therefore it came to be known as the ‘Day Wage System’.
Piece wage system :- In this system pay the wage based on
the amount of work done or output of a worker. One unit of output
is considered as one piece and a specific rate of wage is paid per
piece. Greater is the number of pieces produced by a worker,
higher is his remuneration. Thus, a workman is paid in proportion
to his output. It is called payment by results.
Balance of debt system: - This method is a combination of
time and piece wage systems. The worker is guaranteed a time
rate with an alternative piece rate. If the wages calculated at
piece rate exceed the time rate, the worker gets credit. On the
other hand, if time wages exceed piece wages, the worker is paid
time wage and the deficit is carried forward as debt to be
reconverted in future. This method provides a sense of security to
employees. At the same time an employee is given the
opportunity to increase his earnings beyond the guaranteed time
wage. This method is appropriate in industries where the flow is
minimums, e.g. dock workers. But rates in this method have to be
fixed on the most scientific basis.
In NAVBHARAT STEEL RE ROLLING MILL, wages and salaries are
distributed on the 5th of every month and if any employee wants salary in
advance, company’ll give advance salary in between the Date of 1st to 15th of the
month. Time department keep watch on the each & every labour by taking
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regular attendance. It is their duty to hand wage sheets. There are some rules &
regulations for wage system.
SALARY:-
At NAVBHARAT STEEL RE ROLLING MILL, personnel department of
metro office does recruitment and they give joining sheet to new employee. On
that basis P&A department at GCW give employee code number and P. S. No.
(Pay Sleep Number) After that, they enter new entry in master file, which contains
employee’s name, address, P. S. No., Department, designation, date of birth and
other information.
Time office keeps attendance of all employees on daily basis and based
on that they make monthly report about attendance. This is used in preparation of
payment sleep. Monthly they deduct 12% of P.F. and directly transfer to head
office.
WORKINGWORKING OFOF E.S.I.E.S.I. SCHEMESCHEME
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E.S.I is an abbreviation of employee state insurance scheme. This is
compulsory for the company. According to the “employee stat insurance act
1948.: E.S.I scheme is applicable on those companies in which there are more
than 20 workers working according to factory act; this scheme covers those
employees who have salary less than RS.7500 per month. This scheme provides
them health and sound benefits of this scheme.
Under this scheme employees have to contribute 1.75% of their total
salary while the company contributes 4.75% of their total salary. That total
amounts that is 6.25% are sent at E.S.I. head office in Ahemdabad.
PROVIDENTPROVIDENT FUNDFUND SCHEMESCHEME
ccording to provident fund act 1952,” Provident Fund means collection of
money from the salary of employees and it will be paid at the time of
retirement, disablement or any other occasion. This scheme was started in 1962
and spread in all the industries. Any company having more than so workers can
joint this scheme.”
A
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In NAVBHARAT STEEL RE ROLLING MILL all the permanent employees
come under this scheme. Employees’ provident fund is deducted according to the
rules and regulation of the company and this amount is deposited as contribution
to provided fund in employees’ personal account. This amount is paid to
employee for any special occasion like marriage disablement or operation as a
form of loan.
The NAVBHARAT STEEL RE ROLLING MILL also follows provident fund
act. It provides the provident fund on government rules in present scenario is
12% provident fund is given and this company is given this provident fund to its
employees.
GRIEVANCEGRIEVANCE HANDLINGHANDLING PROCEDUREPROCEDURE
rievance handling procedure is used to solve the disputes between
employee and employee or employer and other employer. When the
dispute arises between employees it is settled by grievance procedures.
Company uses various methods to solve the disputes.
G
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In NAVBHARAT STEEL RE – ROLLING MILL there is no specific
treatment for the grievance. It means if the problems is occurred, the officer take
out the solution of this.
COLLECTIVECOLLECTIVE BARGAININGBARGAINING ANDAND AGREEMENTAGREEMENT
ollective bargaining is the resolution of industrial problem between the
representative of employer and freely designated representative of
employees acting collectively with a minimum of government dictation. Collective
bargaining is an essential element of economic democracy is a ‘Two Party’
procedure to arrive at mutually agreed solution.
C
IN NAVBHARAT STEEL RE – ROLLING MILL, try to provide their level
best to fulfill worker and management. NAVBHARAT STEEL RE – ROLLING
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MILL industry provides many facilities to their worker. Here the whole work is do
manual so there is on major problems create between worker and management.
TRADETRADE UNIONUNION
rade unions are voluntary organizations of employees or employers
formed to promote and protect their interest through collective action
though he terms employees and employers are used when we say trade unions.
They generally refers to employees trade union must be,
T
(1) A combination of workers or employers
(2) Such a combination could be permanent temporary
(3) Could include federation of two or more unions
(4) To regulate relations or among employers
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In the NAVBHARAT STEEL RE ROLLING MILL relation of the staff
member workers is like family member they are only 70 to 80 workers. They work
with co-operation. So here there is no trade union.
PERSONNELPERSONNEL RECORDRECORD
record is piece of writing or a chart which provides ready information and
which preserves evidence for feature reference or use records provides
tangible evidence of the past activities of an organization. It also provides the
information relating to various aspects of human resources of an organization viz.
wages and salary productivity social security absenteeism employee welfare, job
satisfaction etc…
A
In NAVBHARAT STEEL RE - ROLLING MILL personnel department
maintains a wide range of records consisting details information about each every
aspects of organization. This firm adopts computer system as well as manual
system for keeping all the data about employees.
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In NAVBHARAT STEEL RE - ROLLING MILL the personnel records of all
the employees are maintain through personnel department. Such as.
Name and addresses of employees.
Telephone no. Of employees.
Name of parents.
Date of joining.
Designation and nature of work.
Salary and allowances rate.
Monthly attendance, leave and salary position.
Service disciplinary action report.
Remarks.
So, personnel record is a very essential part of the every organization.
Through the personnel record the management can know all the things of
employee.
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.
C o n t e n t
SR NO.SR NO. PARTICULARPARTICULARPAGEPAGE
NO.NO.
(1) INTRODUCTION 45
(2)ORGANIZATION OF MARKETING
DEPARTMENT46
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(3) PRODUCT PLANIING 47
(4) MARKET SEGMENTATION 48
(5) PRICING POLICIES 50
(6) CHANNELS OF DISTRIBUTION 51
(7) ADVERTISEMENT 53
(8) MARKETING RESEARCH 54
INTRODUCTIONINTRODUCTION
arketing is one of the most important parts in the management.
Marketing is done to make its product familiar to the customer.
Marketing means the creation and delivery of standard of living. It is social and
managerial process by which individuals and groups obtain what they need and
want to create after and exchanging products of value with others. It also means
working with market of actualize potential exchange for satisfying human needs
and wants.
M
The goal of marketing is to create customer satisfaction profitability by
building valuable relationship with important customer marketing is very essential
for all the firms whether manufacturing companies, whole seller, retailers and
other individuals.
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President
Definition of Marketing:-
“Marketing is the process of planning and executive the conceptions pricing,
promotion and distribution of ideas, goods and services to create exchange that
satisfy individual & organization goals.”
-As per AMA (American Marketing Association)
ORGANISATIONORGANISATION OFOF MARKETINGMARKETING DEPARTEMENTDEPARTEMENT
rganization of marketing department defines the authorities,
responsibilities of the employee of the department. In the NAVBHARAT
STEEL RE-ROLLING MILL the head office of the marketing is in 5, city centre
Kalanala Bhavnagar. But the unit’s market is spread in the all over India. So we
can say that authority and responsibility of marketing department very high.
O
ORGANIZATION CHART OF MARKETING DEPARTMENTORGANIZATION CHART OF MARKETING DEPARTMENT
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Marketing manager
Distributor
Dealers
PRODUCTPRODUCT PLANNINGPLANNING
roduct planning means, “Introduce a new product in the market other word
it is adding a new product to existing line of the company.” The products
may be as per the needs and the requirements of consumers or may be
introducing due to a technological and development new product developments.
A new product development is different from product innovation or product
modification. In any company they follow customer oriented product planning
process union is as follow
P
1) Idea generation
2) Idea screening
3) Concept testing
4) Business analysis and market share analysis
5) Actual development of new product
6) Test marketing
7) Commercialization
Every unit requires some sort of planning for their product. In NAVBHARAT
STEEL RE-ROLLING MIL. they use following parameters.
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1) Market survey
2) Quality of product
3) Market research
4) Study of competitor’s and competitor’s product
5) Market testing
6) Satisfaction
MARKETMARKET SEGEMENTATIONSEGEMENTATION
A market segment consists of a group of customers who share a similar
set of needs and wants. There are many bases of market segmentation the four
main bases are as follow
(1) Geographic segmentation
(2) Demographic segmentation
(3) Psychographic segmentation
(4) Behavioral segmentation
The market for any product is normally made up of several segments. A
“Market” after all is the aggregate of consumers of a given product and
consumers who make a market are seldom homogeneous, they very in their
characteristics and buying behavior. It is thus natural that many differing
segments occur within a market.
Advantage of market segmentation as under
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1) Facilitates proper choice of target market.
2) Facilitates effective lapping of the market.
3) Helps divide the markets and convert them
NATIONALNATIONAL LEVELLEVEL MARKETINGMARKETING
“NAVBHARAT STEEL RE ROLLING MILL” is having a market for its
product in all the major states of the country and they have appointed to their
customers. They cover all the parts of India here are the few parts where the
company acquires maximum sale Gujarat, Maharashtra, Madhypradesh,
Hariyana, Bihar etc.
INTERNATIONAL LEVEL MARKETINTERNATIONAL LEVEL MARKET
“NAVBHARAT STEEL RE ROLLING MILL” has created a good reputation
for its product even in foreign countries like Nepal, Iran, Iraq, and Malaysia etc.
NAVBHARAT STEEL RE ROLLING MILL has its market spread widely.
Here market segmentation is base on geographical, sales and customer needs. It
has many dealers in India. They are to increase sales and profits.
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PRICINGPRICING POLICYPOLICY
rice is the amount of money changed for a product or service or the sum of
the value that customers exchange for the benefits of having or using the
product or service. Price has been the major factor affecting buyer choice.
However in recent decade non price factor have become more important in buyer
choice behavior
P
TOTAL PRICE = Production Cost + Administration Cost + Taxes + Profit
Company decide price policy with help of following pricing method
Cost-based pricing
Demand based pricing
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Competition-oriented pricing
Value pricing
Product line oriented pricing
Tender pricing
Affordability-based pricing
Differentiated pricing
At the time of making decision regarding price NAVBHARAT STEEL RE –
ROLLING MILL keeps in mind following factors.
1) Price of raw-material
2) Cost of production
3) Competitors price
4) Condit ability in market
5) Wages, salary and liabilities of employee
6) Government direct and indirect taxes
7) Advertising expenses
8) Sales tax and professional taxes
9) Municipal octroi and land and building taxes Interest of capital
investment
CHANNELSCHANNELS OFOF DISTRIBUTIONDISTRIBUTION
istribution channel or marketing channel is a set of interdependent
organizations involved in the process of making a product or service
available for use or consumption by the consumer or business user.
D
Direct M arketing C hannel:-
A marketing channel has no any intermediary level.
Indirect Marketing Channel:-
A channel is containing one or more intermediary levels.
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CUSTOMER MARKETING CHANNELCUSTOMER MARKETING CHANNEL
0-level 1-level 2-level 3-levelManufacturer Manufacturer Manufacturer Manufacturer
Wholesaler wholesaler
Jobber
Retailer Retailer Retailer
Consumer Consumer Consumer Consumer
DIRECT Channel INDIRET Channel
Manufacturer
Wholesaler
Manufacturer
Consumer Agent
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NAVBHARAT STEEL RE ROLLING MILL follows this indirect channel of
distribution.
ADVERTISEMENTADVERTISEMENT
dvertising is the way of communication with the people. The people can
get the information, knowledge of the product with the help of
advertisement. It is the world of neck to neck competition in the market. All the
companies want to sale their product is big scale in the consumer market. For
this reason advertisement is the most important tool. Advertisements are for all
products new products as well as current or existing products. It is being more
effective at Deepings brand loyalty. Advertising is also employed to promote the
bright image of the company in the minds of people. Peoples get attracted
towards the advertisement of the product.
A
Retailer
Consumer
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The NAVBHARAT STEEL RE ROLLING MILL Company uses the
advertisements to attract the buyers. The company uses mass production and
mass sale of the TMT Bars. The main way of advertisement of the iron bar is
internet. The company has to advertise the bars in all over the glob; therefore
print media is not sufficient, therefore they have to advertise through net. This
company creates his own site and in that he put all the information about his
product for running and any new product is going to launch in future. He has put
all his information on the web-site. So, any retailer or consumer want to purchase
his product, he can open the site and can take the information then he can
contact to the company. His contact number and address has been existed on
the web site. So, it is ease to give the order to the company, and the effective
way is that “one person says to another person because this company’s status is
very good”.
MARKETINGMARKETING RESEARCHRESEARCH
arketing to marketing association “marketing research is the systematic
gathering, recording and analysis to data about problem relating to the
marketing goals and servicing”.
M
Market research is a management tool that involves the top management
to learn more about the appropriate “marketing most”. It is the intelligence
services of the industry capable of furnishing ideal solution to different marketing
problem that arise in day to day business.
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Marketing research is the systematic squirting, recording and analyzing of
data problem relating to the marketing of goods and services. It is collecting data
then analyzing data and then put out in classification.
NAVBHARAT STEEL RE ROLLING MILL also does market research to
know their customers requirement and their need. It is also done to know the
changes in the taste and preferences of the customers. As we know that
research is also done to the needs and the demand of their product in the market.
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.
73
C o n t e n tC o n t e n t
SR NO. PARTICULARPAGE
NO.
(1) INTRODUCTION 57
(2)ORGANIZATION OF FINANCE &
ACCOYNT DEPARTMENT58
(3) LEVERAGE 59
(4) CAPITALIZATION 60
(5) CAPITAL STRUCTURE 62
(6)MANAGEMENT OF FIXED
ASSETS64
(7)MANAGEMENT OF WORKING
CAPITAL65
(8) RATIO ANALYSIS 67
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INTRODUCTIONINTRODUCTION
inance is lifeblood of any institute or business. Finance is the wheel to
which one can generate and direct its business of the achievement of the
organization goals. Proper management of finance department forms the base to
increase the profitability. In business, cost to create and maintain a product is in
the hand of businessman. In competitive era sales and profit are not in the hands
of entrepreneur.
F
“Money is the soul and of coarse the blood of any share of business.”
Financial Management means procurement of the fund at minimum cost
and time from the various sources and its development in the business activities
for the smooth and successful running of the business.
Financial Management is an integral part of the overall management of the
firm. The important of finance function depends largely on size of the firm.
Finance management includes different types of financial decision, liquidity
decision that decides the fortune of any business.
In NAVBHARAT STEEL RE - ROLLING MILL responsibility is on the
head of finance manager. He has to take so many decisions related to the
finance. The finance manager has to the great care to deal with financial matter.
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ORGANISATIONORGANISATION OFOF FINANCEFINANCE ANDAND ACCOUNTACCOUNT DEPARTMENTDEPARTMENT
o Raise finance at a right time and to utilize it most efficiency are primary
function of financial management. Basically all finance function are same
in all types of business organization.
Ti.e. in sloe proprietorship firm with small size all function in a medium size
firms finance department is created in a large size business unit however a clear
and detail division of finance function is made.
In NAVBHARAT STEEL RE ROLLING MILL is developing unit there finance
function is handle by MR.BHAGIRATHSINH G SARAVAIYA and his two
assistance MR. KANAKSIH AND MR. RAJENDRASINH organization structure of
the company is not large which is show as under.
The organization chart of finance department is as
under:
LEVERAGELEVERAGE
FINANCE MANAGER
ACCOUNT MANAGER
ASSISTANT A/C MANAGER
CHIEF ACCOUNTANT
ASSISTANT ACCOUNTANT
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n very simply words, the term leverage measures relationship between two
variables. In financial variable over some other financial variable. In financial
analysis, generally three types of leverages may be computed.
IOperating Leverages: -Operating Leverages: -
It measures the effect of change in sales quantity and operating capacity
on Earnings Before Interest and Taxes (EBIT).
It is computed as:
Sales-variables cost
Operating Leverage= ----------------------------------------------
Earnings before interest and tax
Financial Leverage: -Financial Leverage: -
It indicates the firm's ability to use fixed financial charges to magnify the
effects of changes in EBIT on the firm's EPS. It indicates the extent to which the
earning before interest and tax (EBIT)
It is computed as:
EBIT
Financial Leverage = ---------
EBT
Combined Leverage: -Combined Leverage: -
The combined effect of operating leverage and financial leverage
measures the impact of change in contribution on EPS.
It is computed as:
Combined Leverage = Operating Leverage x Financial Leverage.
Leverage analysis is not applicable in NAVBHARAT STEEL RE-ROLLINGS MILL
CAPITALISATIONCAPITALISATION
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inance manager has to decide what amount is required. This decision
includes estimation of total fund required by a business unit. The total
requires. This decision includes estimation of total fund required by a business
unit. The total amount of capital and revenue expenditure of a company is
estimated and on that basis what fund is required as estimated. This is called
capitalization.
F
The word capitalization can be define as sum total of all kinds of long terms
securities at there par values. Thus it can be interpreted as the sum of ownership
capital and borrowed capital it also includes surplus.
“Capitalization is the total accounting value of the capital stock, surplus in
whatever form it may appear and long term debts”.
“Capitalization includes amount of capital to be raised, the securities
through which it is to be raised and his relative proportion of various classes of
securities to be issued and also the administration of capital”.
There is no specific time of analyzing the problem of capitalization. It is not
like that at time of promotion of a company the capital problems causes. It can be
carried at any time during the life of a company. Generally, there are 3 types of
capitalization.
Capital is one part of Capitalization
Share capital = Equity Share Capital + Preference Share Capital
Capitalization = Share Capital + Debenture Capital + Long Term +
Borrowing + Free reserves
Capitalization is been divided into 3 parts
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1) OVER CAPITALIZATION :-
Whenever the aggregate of the par valued of shares and debentures out
standing of a company exceeds the true value of its fixed assets the company is
said to be over capitalized.
2) UNDER CAPITALIZATION :-
Reversing the concept of over capitalization under capitalization refers to
the excess of have value of assets against par value of share and debentures.
such cases of under capitalization are very rare.
3) FAIR CAPITALIZATION :-
It refers enough finance according to its requirement no less to its
requirement than it is called fair capitalization.
NAVBHARAT STEEL RE - ROLLING MILL Is near to fair capitalization.
CAPITALCAPITAL STRUCTURESTRUCTURE
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he two principal sources of finance for business firm are Equity share,
Preference share and Debentures. The combination of these three
sources is known as "Capital Structure" of the business unit. The combination
leads to maximum value of firm is known as the optimum capital structure. Thus
capital structure refers to the composition of capital.
T
(1) Equity Share Holder:-
Equity share holders are the owners of the business. Equity share may be
regarded as the backbone of capital structures of a company. Equity
shareholders are the real risk bearers of company’s business, this share do not
carry out special right in respect of dividend of return of capital in the event of the
winding up of the company. They get dividend only after the debenture holders
and preference share holders have received their specified return similarly they
rank last in their claim of the assets of the companies, in case of liquidation after
all other debts and preference share capital are real risk bearers of the
companies business.
(2) Preference Share Holder:-
Preference shares are kind of high bride security containing features of
date and equity share. In the event of liquidation preference share holders claim
on assets comes after creditors but before ordinary shares. Usually this claim is
restricted to face value of the share.
According to Indian co. act 1956 preference share is that which has
following 2 preference share right.
(1) Preference share holder should be paid dividend before equity
share
(2) At the time of liquidation preference share capital is return
before equity share capital is return before equity share capital is return.
Company can issue various types of Preference Shares.
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(A) Participating preference shares
(B) Non participating preference shares
(C) Cumulative preference shares
(D) Non cumulative preference shares
(E) Convertible preference shares
(F) Redeemable preference shares
(G) Irredeemable preference share
(3) Debentures:-
Debenture is not a part of share capital of a company. It is a security by
which a company borrows money from general public or from financial institution.
When a company need money for long period but it is hope ful of being able to
return money it issues debentures. By issuing debenture the company borrow
money from public. The company issues debenture certificate to the person who
purchase the debenture. Thus debenture is an instrument threw which a
company acknowledges the debt.
NAVBHARAT STEEL RE ROLLING MILL is Partner Ship Company so
the company is not issued any Equity, Preference and Debenture
MANAGEMENT OF FIXED ASSETSMANAGEMENT OF FIXED ASSETS
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here are 2 types of assets in each business organization i.e. fixed assets
and currents assets both types of assts are to be managed efficiently and
as to earn maximum profit with minimum possible investment
TFixed assets of company are the permanent capital of company. It helps in
production process and used for long period hence proper management of fixed
assets is very important for every company measure consideration should be
given and that is why decision regarding fixed assets that to be used over a long
period
NAVBHARAT STEEL RE – ROLLING MILL has very big amount of fixed
assts which are has under
Sr. No. Fixed assetsAmount in Rs.
(Approx)
(1) Land 25 lacs
(2) Building 30 lacs
(3) Machinery 60 lacs
TOTAL Rs. 115 lacs
MANAGEMENTMANAGEMENT OFOF WORKINGWORKING CAPITALCAPITAL
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orking capital management involves deciding upon the amount and
composition of current assets and how to finance these current assets.
The lower the amount of working capital level maintained the more the risk of
running business and more will be the profitability
W
There are two types of working capital like
1) Gross Working Capital :-
Gross working capital indicates the liquid position of the firm. It helps
the management to look for permanent sources for financing its working
capital.
2) Net Working Capital :-
Net working capital indicates the liquid position of the firm it helps the
management to look for permanent sources for financing its working capital
need.
CASHCASH MANAGEMENTMANAGEMENT
Cash a liquid and assets is the basic input required to run the business. It
includes cash and near cash assets like c both cash management is concerned
with the managing of cash flows into and out or within the firm. The basic
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objective of cash management is to reduce the operating cash requirement to the
minimum possible extent without affecting the routine transaction.
In NAVBHARAT STEEL RE ROLLING MILL petty cash book is managed
and most of the transaction is done by cash.
INVENTORYINVENTORY MANAGEMENTMANAGEMENT
Management of inventory assumes importance due to the fact that
investment in inventory constitutes one of the major investments in assets. The
objective of inventory in order to facilitate efficient and smooth production and
sales operation and sales operation and also to minimize investment in inventory
to maximize profitability.
In management of inventories in NAVBHARAT STEEL RE –
ROLLING MILL, the record of inventory is maintained of factory premises
according to rules and regulation.
RECEIVABLERECEIVABLE MANAGEMENTMANAGEMENT
Receivables or book debt is created by the trade and arises out of credit
transactions. The basic objective of receivables or credit. Management is to
maximize the value of the firmly obtaining optimum volume of sales by controlling
the cost of credit and keep it at minimum.
RATIORATIO ANALYSISANALYSIS
atio analysis is a powerful tool of financial analysis. A ratio is defined as
the systematic use of the ratio to interpret the financial statement so that
the strength and weaknesses of a firm as well as its historical performance and
R
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current financial condition can be determined. Also it can be said as “the
indicated quotient of two mathematical expressions and as “the relationship
between two or more things”. In financial analysis ratio is used as the benchmark
for evaluating the financial position and performance of the firm. The relationship
between two accounting figures expressed mathematically is known as a
financial ratio.
Traditional classification is based on financial statement to which
determines the ratio belongs.
Profit and loss account ratios are based on profit and loss account
only.
Balance sheet ratios are based on the figures of the balance sheet.
Composite or inter-statement ratios are based on both that is the
profit and loss account and balance sheet.
CLASSIFICATION OF RATIOS :-CLASSIFICATION OF RATIOS :-
1. RevenueRevenue
StatementStatement RatioRatio
(A) Gross Profit
Ratio
(B) Operating Ratio
(C) Expenses Ratio
(D) Net profit Ratio
(E) Stock Turnover
2. BalanceBalance SheetSheet RatioRatio
(A) Current Ratio
(B) Liquid Ratio
(C) Quick Ratio
(D) Proprietary Ratio
(E) Debt-equity Ratio
(F) Capital Gearing Ratio
(G) Long Term Debt
(1) (1) RevenueRevenue StatementStatement Ratios:-Ratios:-
(A) (A) GrossGross ProfitProfit Ratio :-Ratio :-
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This Ratio gives the information about gross margin of profit
realized in the company.
Gross Profit
Gross Profit Ratio = -------------------------- X
100
Sales
(B) (B) OperatingOperating Ratio :-Ratio :-
By this Ratio we will get information about how much
total margin of expenses realized in business.
Cost of Goods Sold + Operating
Expenses
Operating Ratio =
----------------------------------------------------------- X 100
Net Sales
(C) (C) ExpenseExpense Ratio:-Ratio:-
This Ratio gives information about how much margin
of expenses out of Total Sales.
Expense
Expense Ratio = ------------------------- x100
Total Sales
(D)(D) Net Net ProfitProfit Ratio :-Ratio :-
By this Ratio we will set the information of net margin
of profit realized on sales.
Net Profit
Net Profit Ratio = --------------------------- x 100
Total Sales
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(D) (D) StockStock Turnover:-Turnover:-
This Ratio gives the information about how many
times stock becomes change in a year.
Cost of Goods Sold
Stock Turn Over = -----------------------------
Average Stock
Cost of Goods Sold = Sales – Gross Profit
Cost of Goods Sold = Operating Stock+ Purchase+
Expense for Purchase -
Closing Stock
(2) (2) BalanceBalance SheetSheet Ratio:-Ratio:-
(A) (A) CurrentCurrent Ratio :-Ratio :-
This most widely used Ratio shows the proportion of
current assets to current liability. It is also known as
“Working Capital Ratio” as it is a measure of working capital
available at a particular time. The ratio is obtained by
dividing current assets by the current liability. Generally
comfortable Ratio is 2:1
Current Assets
Current Ratio = ------------------------------
Current Liability
Current Assets = Closing Stock + Cash & Bank Balance
+ Debtors + Bills Receivables + Prepaid Expenses + Out
Standing Income + etc…
Current Liability = Creditors + Bills Payable + Bank
Overdraft + Out Standing Expenses + Provision for tax +
Proposed Dividend + Provident Fund + Gratuity + etc…
(B) (B) LiquidLiquid Ratio:-Ratio:-
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A variant of a Current Ratio is Liquid Ratio or Quick
Ratio which is design to show the amount of cash available
to meet immediate payment. It is obtained by dividing Liquid
Assets by Liquid Liabilities.
Liquid Assets are obtained by deducting stock-in-
trade from Current Assets. Stock is not treated as l Liquid
Assets because it can not be readily converted into cash as
when required.
If the Liquid Assets are equal to or more than Liquid
Liabilities, the condition may be considered as satisfaction.
Generally standard margin of this Ratio is 1:1
Liquid Assets
Liquid Ratio = --------------------------------
Liquid Liabilities
((C) C) Acid-TestAcid-Test Ratio:-Ratio:-
This ratio gives the information regarding actual
liquidity of the company. Ideal ratio is 0.5:1.
Quick Assets
Acid-test ratio = ---------------------------
Liquid Liabilities
(D) (D) Proprietary Ratio:-Proprietary Ratio:-
The Ratio shows the proportion of the proprietor’s
fund to the total assets employed in the business. The
proprietor’s funds or share holders ‘Equity consists of share
capital and reserves and surplus’. The higher the ratio, the
stronger the financial position of the enterprise.
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Proprietor’s Fund
Proprietary Ratio = ---------------------------
Total Assets
(E) (E) Debt Equity Ratio:-Debt Equity Ratio:-
This Ratio is only another form of Proprietary Ratio
and establishes relationship between the outside long term
liabilities and owners fund. It shows the proportion of long
term external equities and internal equities i.e. Proportion of
funds provided by long term creditors and that provided by
shareholders or proprietors.
Long term liabilities
Debt-equity ratio = ------------------------------------- x 100
Share holders funds
(F) (F) Capital Gearing Ratio:-Capital Gearing Ratio:-
This Ratio expresses the proportion of preference
capital and ordinary capital. In other words, it is ratio of fixed
dividend gearing capital to ordinary capital. Sometimes,
even debentures are included along with preference capital.
The higher this is ratio i.e. the greater the proportion of
Preference Capital and Debentures to ordinary capital.
Fixed Interest Bearing
Capital
Gearing Ratio =
-----------------------------------------------------------
Ordinary Capital
(G) (G) Long Term Funds to Fixed Assets:Long Term Funds to Fixed Assets:
The fixed assets of business must be purchased out
of fixed capital only. This includes share capital, reserves,
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and long term liabilities. This ratio, therefore, shows the
relation ship between fixed capital and fixed assets.
Long
Term Fund
Long Term Funds to Fixed Assets Ratio: =
-----------------------------------
Fixed
Assets
NAVBHARAT STEEL RE ROLLING MILL Company
do not give any financial information. So, we do not
calculate the Ratio Analysis sums.
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B I B L I O G R A P H Y
GENERAL INFORMATION
Web site:-
www.navbharatsteelreROLLING.org
E-mail :-
BOOKS
SUBJECT AUTHOR
HUMANHUMAN REASOURCEREASOURCE
MANAGEMENT:MANAGEMENT:
Prof. Udai Parikh C.B. Mamoria,
S.V.Gankar, Himmalya Publishing
house, Mumbai.
MARKETINGMARKETING
MANAGEMENT:-MANAGEMENT:-
Philip Kotler, Gary Armstrong
‘Principle Of Marketing
Management’, 11th edition, 2007,
New Delhi.
FINANCIALFINANCIAL Prof. S.P. Shah, Dr. Paresh
Shah, Dr P.K.Priyam, Dr. Hitesh
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MANAGEMENT:-MANAGEMENT:-Shukla, ‘Finance Management’.,
1st Edition 2002-03
