AN ORGANIZATIONAL STUDY OF

GASHA STEELS PVT. LTD

A PROJECT REPORT

Submitted by

RANJITH.T

In partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

AJK INSTITUTE OF MANAGEMENT

COIMBATORE -641105

ANNA UNIVERSITY: CHENNAI 600 025

JULY 2014

ANNA UNIVERSITY: CHENNAI 600 025

BONAFIDE CERTIFICATE

Certified that this SUMMER TRAINING“A ORGANIZATIONAL STUDY OF THE

GASHA STEEL PVT. LTD” is the bonafide work of “RANJITH,T,

720213631028” who carried out the project work under my supervision.

Dr. G.BHUVANESWARI G.U.DEEPIKA

DIRECTOR SUPERVISOR

AJK INSTITUTE OF MANAGEMENT AJK INSTITUTE OF MANAGEMENT

COIMBATORE -641105 COIMBATORE -641105

Project Viva-Voce examination held on_________________

---------------------- -------------------

Internal Examiner External Examiner

DECLARATION

I affirm that the SUMMER TRAINING titled “AN ORGANIZATIONAL

STUDY OF GASHA STEELS PVT. LTD” being submitted in partial fulfillment

for the award of MBA is the original work carried out by me. It has not

formed the part of any other project work submitted for award of any

degree or diploma, either in this or any other University.

I hereby declare that this report has not been submitted to any other

university for the reward of any other degree, fellowship any other similar

title.

Date: RANJITH.T

Place: Coimbatore 720213631028

I certify that the above declaration made by the candidate is true.

Dr. SUDHAKARAN

Director

ACKNOWLEDGEMENT

I owe a deep sense of gratitude forever of the lord almighty for blessing me

with abundance help through various sources and woes graces was the

moving spirit behind my effort in making this project report a reality.

My sincere thanks to Mr. Ajith Kumar Lal Mohan, secretary, AJK Institute of

management and the faculty in the department or having helped me in this

project.

I am thankful to Dr. Sudhakaran, Director, AJK Institute of management and

the faculty members in the department for having helped me in this

project.

I am grateful and owe a personal debt of gratitude to my research guide

Mrs. G. U. Deepika, MBA, Associate professor, AJK Institute of

Management, who has always been forthcoming with valuable support,

extraordinary guidance, patience and inspiration at all the stages of this

project work which offered new insight, that were inevitable during my

study and report writing.

I take great pleasure in thanking Mr. MUHAMMED YUSAF SHA (MANAGER)

who stretched his helping hands and constant support through each stages

of this project.

RANJITH.T

CONTENTS

Chapter

no.

TITLE PAGE NO

1 DECLARATION

CERTIFICATE

INTRODUCTION

1.1 Introduction

1.2 Title of the study

1.3 Objectives of the study

1.4 Scope of the study

1.5 Research problem

1.6 Research methodology

1.7 Tools used for the study

1.8 Period of the study

1.9 Limitations of the study

1.10 Chapter scheming

2 COMPANY PROFILE

The Gasha Steels Pvt.Ltd.- A profile

3 REVIEW OF LITERATURE

1.Review of literature

2.Theoretical framework

4 ANALYSIS AND INTERPRETATION OF DATA

5 FINDINGS , SUGGESTIONS AND

CONLUSIONS

LIST OF TABLES

LIST OF GRAPHS

LIST OF FIGURES

TABLE NO TITLE

PAGE NO

4.14.24.3

PURCASE DEPATMENTPRODUCTION DEPARTMENTMARKETING DEPARTMENT

GRAPH NO TITLE

PAGE NO

4.14.24.3

PURCHASE DEPARTMENTPRODUCTION DEPARTMENTMARKETING DEPSRTMENT

FIGURE

NO

TITLE PAGE NO

1

2

3

4

5

6

7

ORGANISATIONAL CHART

PURCHASE DEPARTMENT

PRODUCTION DEPARTMEN

FINANCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT

MARKETING DEPARTMENT

SYSTEM DEPARTMENT

Chapter1

INTRODUCTION

CHAPTER 1

INTRODUCTION

Business refers to any economic activities in which people engage In to earn

profit. Such activities have an inherent element of risk and continuity in

them. An organization is defined as two or more people brought together by

one or more shared goals or an organization is a group of two or more

people working together in a predetermined passion to achieve a common

set of goals. Organization is the foundation upon which the whole structure

of management is built. Organization is related with developing a framework

where the total work is divided into manageable components in order to

facilitate the achievement of objective or goals.

This project report contains an organization study with special reference to

GASHA STEELS (P) LTD; the flagship division of the 1000 crore Kalliyath

group was established in the year 2001. The company work as a large scale

organization. This manufacturing facility at Kanjikode, Kerala produces

TMT bars of top quality and also produces high quality angles, squares and

all section of TOR steels.

Steel has been the key material with which the world has reached to a

developed position. All the engineering machines, mechanical tools and

most importantly building and construction structures like bars, rods,

channels, wires, angles etc are made of steel for its feature being hard and

adaptable. Earlier when the alloy of steel was not discovered, iron was used

for the said purposes but iron is usually prone to rust and is not so strong.

Steel is highly wanted alloy over the world. All the countries need steel for

the infrastructural development and overall growth. Steel has a variety of

grades i.e., above 2000 but is mainly categorized in divisions -steel flat and

steel long, depending on the shape of steel manufactured. Steel flat includes

steel products in flat, plate, sheet or strip shapes. The plate shaped steel

products are usually 10 to 200 and thin rolled strip products are of 1 to 10

mm in dimension. Steel flat is mostly used in construction, ship building,

pipes and boiler applications. Steel long category includes steel products in

long, bar or shape like reinforced rods made of sponge iron. The steel long

products are required to produce concrete, blocks, bars, tools, gears and

engineering products.

Indian steel industry plays a significant role in the country’s economic

growth. India has acquired a central position on the global steel map with its

giant steel mills, acquisition of global scale capacities by players continuous

modernization and backward Integration into global raw material sources

Currently ranked the world’s fourth largest crude steel capacity, India is

expected to become the second largest producer of crude steel in the world

by 2015 to 2016 .India is also the world’s largest producer of sponge iron

with host of coal based unit’s located in its mineral rich states.

1.2 TITLE OF THE STUDY

“AN ORGANIZATION STUDY OF GASHA STEELS PVT.LTD.”

1.3 OBJECTIVES OF STUDY

The general objectives of the study are to gain practical knowledge and to

know overall function of the various departments of the organization.

These are the special objectives of the study

To study the overall organization and management of the

company.

To study the quality of the organization.

To study various functions of the organization.

1.4 SCOPE OF THE STUDY

The project titled “AN ORGANISATION STUDY OF GASHA STEES

PVT.LTD. KANJIKODE” made an attempt to analyze the different

functional areas of the company. The functional area where has to made an

improvement to attain the objective of the company and to attain the growth

of the organization.

1.8 PERIOD OF STUDY

The study is under taken for a period of five years from 31 st march 2009 to

31st march 2013.

1.9 LIMITATIONS OF STUDY

Detailed analysis and in-depth study is not possible due to limited

time available.

The study is based on data relating to a period of 5 financial years

only.

Secondary data’s are used for the study. So the study has limitations

of secondary data also.

1.11 CHAPTER SCHEMING

CHAPTER 1: Introduction (Organization profile, research problem,

objectives, scope, limitations of the study, research methodology etc..)

CHAPTER 2: Profile of GASHA Steels

CHAPTER 3: Departmental study

CHAPTER 5: Summary, findings and suggestions

Chapter 2

COMPANY PROFILE

CHAPTER 2

INDUSTRY PROFILE

Steel is crucial to the development of any modern economy and is

considered to be the back born of human civilization. The level of per capital

consumption of steel is treated as n important index of the level of socio

economic development and living standards of the people in any country. It

is a product of a large and technologically complex industry having strong

forward and backward linkages in terms of material flows and income

generation. All major industry economies are characterized by the existence

of a strong steel industry and growth of many of these has been largely

shaped by the strength of their steel industries in their initial stages of

development. Steel industry was in the vanguard in the liberalization of the

industrial sector and has made rapid strides since then. The new Greenfield

plants represent the latest in technology. Output has increased, the industry

has moved up in the value chain in exports have raised consequent to a

greater integration with the economy. The new plants have also bought

about a greater regional dispersion easing the domestic supply position

notably in the western region. At the same time, the domestic steel industry

faces new challenges. Some of these relate to the trade barriers in developed

markets and certain structural problems of the domestic industry notably due

to the high cost of commissioning of new projects the domestic demand too

has not improved to significant levels .The litmus test of steels industry will

be to surmount these difficulties and remain globally competitive

HISTORY OF STEEL

Steel was discovered by the Chinese under the reign of Han Dynasty in 202

BC till 220AD. Prior to steel, iron was a very popular metal and it was used

all over the globe. Even the time period of around 2 to 3 thousand years

before Christ is termed as Iron Age as iron was vastly used in the period in

each and every part of life. But, with the change in time and technology,

people were able an even stronger and harder material than iron that was

steel. Using iron had some disadvantages but the alloy of iron and carbon

fulfilled all that iron couldn’t do. The Chinese people invented steel as it was

harder than iron and it could serve better if it is used in making weapons.

One legend says that the sword of the first Han emperor was made of steel

only. From China, the process of making steel from iron spread to its south

and reached India. High quality steel was being produced in southern India

in as early as 300BC. Most of the steel then was exported from Asia only.

Around 9th century AD, the smiths in the east developed techniques to

produce sharp and flexible steel blades. In the 17th century, smith in Europe

came to know about a new process of segmentations of produce steel. Also,

other new and improved technologies were gradually developed and steel

soon became the key factor on which most of the economies of the world

started depending.

THE GLOBAL STEEL INDUSTRY

The current global steel industry is its steel industry is in its steel industry is

in its best position in comparing to last decades. The price has been rising

continuously. The demand expectations for steel rapidly growing for coming

years the steel industry is also in a high price. The share of steel industry is

enjoying its 6th consecutive years of growth in supply and demand. And

there is many more merger acquisitions which overall the industry and

showed some good results. The supreme crisis has lead to recession in

economy of different countries, which may lead to have a negative effect on

whole steel industry in coming years. However steel production and

consumption will be supported by continuous economic growth.

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL

INDUSTRIES

The countries like China, Japan, India, and South Korea are in the top of the

above in steel production in Asian production. China accounts for the one

third of total production i.e. 419 MT, Japan accounts for 9%i.e. 118MT,

India accounts for 53 MT and South Korea is accounted for 49MT which all

totally become more than 501% of global production. Apart from this USA,

BRAZILE, UK accounts for the major chunk of the whole growth

Country wise crude steel production during the year of 2007-08

TABLE NO:2.1

Country crude steel production (MT pa.)

COUNTRY PRODUCTION (MT Pa.)

CHINA 272.5JAPAN 112.7USA 98.9

RUSSSIA 65.6SOUTH KOREA 47.5F.R GERMANY 46.4UKRAINE 38.7BRAZIL 32.9INDIA 32.6ITALY 28.4

Production

Chaina JapanUSA RussiaS korea GermanyUkraine BrazilIndia Italy

STEEL INDUSTRIES IN INDIA

At the time of independence , India had a small iron and steel industry with

production of about a million tons (MT).In due course ,the government was

mainly focusing on developing basic steel industry , where crude steel

constituted a major part of the total steel production .Many public sector

units were established and thus public sector had a dominant share in the

steel production till early 1990’s .Mostly private players were in downstream

production which was mainly producing finished steel using crude steel

products Capacity ceiling measures were introduced.

Till early 1990’s, when economic liberalization reforms were introduced,

ton; for additional capacity creation producers had to take license from the

government; foreign investment was restricted; and there were restrictions

on imports as well as exports.

Major developments that occur at the time of liberalization, they are;

Large plant capacities they were reserved for public sector were

removed

Import tariffs were reduced from 100% to 5%

Decontrol of domestic steel prices.

Foreign investment was encouraged and the steel industry was part of

the high priority industries for foreign investment and implying

automatic approval foreign equity participation up to 100%. And

System of freight ceiling was introduced in place of freight

equalization scheme.

As a result the domestic steel industry has since then become market

oriented and integrated with the global steel industry. This has helped

private players to expand their operations and bring in new cost effective

technologies to improve competitiveness not only in the domestic but also in

the global market. Recently the steel industry is receiving significant foreign

investment such as POSCO-south Korean steel producer, and Arcelor-mittal

group –UK/Europe based steel producer announcing plans for establishing

about 12MT production unit in each in India. The Indian steel industry is

showing promising future growth, with a production of about 1 MT at the

time of independence, has come long way to reach the production of about

57 MT in 2006-2007.

Impressive development of the steel industry with active participation of

private sector and integration of Indian steel industry with the global steel

industry has also induced the govt. to come up with a national steel policy in

2005. The national steel policy 2005 was drafted with the aim of

establishing rod map and frame work for the development of the steel

industry. The policy envisages steel production to reach at 110mt by 2019-

2020 with annual growth rate of 7.3%. as later will show these expectations

are not excessively high.

The most recent addition is 3mt integrated steel plant with modern

technology at Visakhapattanam. Steel Authority of India (SAIL) accounts

for over 40% of India’s crude steel production. SAIL comprises of nine

plants including five integrated and four special steel plants. Of these one

was nationalized and two were acquired; several were set up in collaboration

with foreign companies. SAIL also owns mines and subsidiary companies.

MAJOR PLAYERS OF STEEL IN INDIA

PUBLIC SECTOR

STEEL AUTHORITY OF INDIA LIMITED(SAIL)

RASHTRIYA ISPAT NIGAM LIMITED(RINL)

METAL SCRAP TRAD CORPORATION (MSTC)

FERRO SCRAP NIGAM LIMITED(FSNL)

HINDUSTAN STEEL WORKS CONSTUCTION

LIMITED(HSCL)

MECON LTD.

PRIVATE SECTOR

TATA STEEL LTD.

ESSAR STEEL LTD.

JSW STEEL LTD.

JINDAL STEEL& POWER LTD.(JSPL)

ISPAT INDUSTRIES LTD.(IIL)

COMPANY PROFILE

GASHA STEELS PVT.LTD. , the flagship division of the 1000crore

Kalliyath group was established in the year 2001. This division with state of

the art facilities produces high quality TMT BARS, ANGLES, SQARES and

all section of TOR steels. By adopting highest manufacturing standards and

using cutting edge technology, this manufacturing facility at Kanjicode ,

Kerala produces TMT bars of top quality.

GASHA STEELS IS AN ISO 9001-2008 COMPANY

The company is engaged in the business of manufacturing TMT bars and

wire rods of various sizes and specifications according to the BIS standards

(ISI) and needs of the customers up to a capacity of 3000 tons per month on

double shift basis. The rolled products are steel rods (CTD/TMT) from 5mm

to 16mm. these rolled products, namely 5, 6, 8,10,12,16 bars are extensively

used in buildings and other civil construction work in Kerala. Our rolling

mill unit is spread over 4.5 acres of land with adequate infrastructure

facilities like power, transport and communication facilities. GASHA

STEELS steadily gross on its core ideals of quality management, innovation

and understanding customer’s needs, through continuous quality

improvements in steel products. GASHA STEELS were able to strength its

position as a market leader. The company’s products command a good

premium over the market prices. Now GASHA emerging as top one among

the reputed rolling mills Kerala.

High quality thermo mechanically treated (TMT) bars are manufactured

using the most contemporary technology available worldwide and

supervised by qualified metallurgist and structural engineers. The products

are BIS approved and meet all the standards of ISI and marked ISI label. The

salient features of the rolling mill include an extensive billet /ingots yard

fore cast-wise (CHEMICAL) stacking of billets; this will help to get better

consistency in TMTbars.TMT steels bars are made using rapid quenching

and tempering technology. It allows the production of bars to be par with

BIS and international standards. Hot rolled bars from steel billets are

subjected to PLC-controlled online thermo- mechanical treatment; the bars

are made pass through heat treatment over three successive stages.

Quenching

Self tempering

Normalizing (atmospheric cooling).

After quenching process, the bars are cut to desire sizes with the auto

sharing machines and transferred to the cooling bed where in they are

naturally cooled to get the defined structure. Unlike conventional bars that

are subjected to force cooling cold twisting. TMT bars have high strength,

greater yield and elongation, uniform micro structure, toughness, ductibility

and greater weld ability. Hence they are equipped with the requisite

properties like outer rib arrangements as per the standard of BIS with CNC

machines to PULLOUT test of BIS, also to provide strengthen to concrete

structures for enduring natural hazards. Further, our quality controllers also

test each product at both, procurement and delivering stages. This helps in

avoiding any consistency at the client ends.

OBJECTIVES OF THE COMPANY

Improving customer satisfaction.

Ensure sale and environment friendly process through active

involvement.

Create awareness amongst the employees.

Encouraging our suppliers and contractors to adopt quality.

MISSION:

Identifying the needs of customers for product services and meeting

customers’ needs and supply.

Ensuring that the quality product to built at every stage of operations

Retaining customer confidence and loyalty by providing quantity

product and services.

Committed work force through continual enrichment of skill and

knowledge.

Contribution in quantity steel production of nation.

PRODUCT PROFILE

The company now manufactures 5mm, 6mm, CTD bars (cold twisted

deformed) 8mm, 10mm, 12mm TMT bars. The raw material for the unit is

steel ingots, billets which is readily available. In the state of Kerala, there are

five induction furnace units and one billet making unit without rerolling

facility and their total production is 7500ton of steel billets. The other input

and consumable like for furnace oil, rolls are readily available at economic

price in the domestic market.

PROCESS

Steel ingots used for the rolling are loaded into reheating furnace to heat

them to required rerolling temperature. The heated steel ingots or billets then

removed from the reheating furnace and rolled in proposed oiling mill

consisting of stands driven by high capacity motors.CTO bars rolled in the

mills be coiled by using coiler machine.

Foreman

CHAIRMAN CUM MD

EXECUTIVE DIRECTORS

DIRECTORS

Accounts in charge

Purchase in charge

Stores in charge

HRD in charge Production in charge& MR

Accountant 1&2

Purchase assistant

Store assistant

Sales assistant

Securities

Cashier Driver Office boy Yard supervisor

Mill shift in charge

TM FILTERS

I/M FILTERS

F R FILTERS

FIREMAN

TM HELPERS

Mechanical in charge

Mechanical filters

Electrical in charge

Workshop in charge

TM filters TM contract

Electrical helpers

Electrician

Mechanical helpers

MILL HELPERS

TURNERS

SHADERMAN

WELDER

GAS CUTTER

HELPERS

TM FILTERS

TM contract

Mobile crane operator

Loading contractor

Unloading contractor

Housekeeping helpers

ORGANIZATION CHART

CHAPTER 3

DEPARTMENTAL STUDY

FUNCTIONAL AREAS OF ORGANIZATION

Purchase Department

Production Department

Finance Department

Human Recourse Department

Marketing Department

System Department

PURCHASE DEPARTMENT

Purchase department is responsible for purchase of scraps used in furnace.

Scraps are brought from domestic market and international market mainly

they are importing these scraps from various countries.

STRUCTURE OF PURCHASE DEPARTMENT

Purchase incharge

Purchase assistant

Officers

Supervisors

DOMESTIC:

Company purchase raw material from Kerala, Tamilnadu, Karnataka and

Andrapradesh . It get raw material for competitive prices. There are various

agencies for supplying these raw materials. So the company need not worry

for the availability of raw materials. Purchase department gives frozen

production schedule to the agents, so that the agents are able to provide raw

materials without interruption. The company gives permission for their

service at the fixed percentage of value of the raw materials.

IMPORT:

GASHA STEELS PVT. LTD. has been importing the various types of raw

materials to be used in the furnace division for manufacturing of TMT bars.

The importing of quality raw materials is done for quality manufacturing

products. Materials are imported from the following countries.

United Kingdom

Netherlands

United Arab Emirates

Mauritius

Switzerland

About 75% of import is made from UK and it is done through

containers. Containers capacity is about 3000tones. Agents are

appointed to perform import procedure they will be sending to

perform import procedure they will be sending to exporting country to

test the products quality.

No of agents 4

Period of the receipt 20-40 days

Import duty on raw materials 16%.

Port cochin

METHOD OF PAYMENT:

Through letter of credit pre-shipment facility for import with maximum of 6

month is available.

PORT OF CLEARANCE:

Cochin airport and clearance function takes place within 60 day of raw

material arrival.

TRANSPORTATION

Import scrap reaches the port and it’s transported to its production center

through Lorries. Transport agencies are used for this purpose.

Table no: 4.1 TABLE SHOWING RAW MATRIAL PURCHASED

DURING 2008-09 TO 2012-13

YEAR RAWMATERIAL PURCHASED(Qty in MT)

2008-2009 24527.335

2009-2010 31979.965

2010-2011 33909.730

2011-2012 32968.60

2012-2013 34897.765GRAPH SHOWING THE RAWMATERIAL PURCHASED DURING 2008-09 TO 2012-13

2008-2009 2009-2010 2010-2011 2011-2012 2012-20130

5000

10000

15000

20000

25000

30000

35000

40000

24527.335

31927.96533909.73 32968.6

34897.765

INTERPRETATION

The above table and graph shows the purchase of company during period

from2008-2009 to 2012-1013. The company’s raw material purchase shows

an increase trend during these years except in 2011-12.

PRODUCTION DEPARTMENT

Production is the process by which raw material and other input are

converted into finished products. It requires the coordination of various

inputs like raw material, machineries and other materials. Production

management refers to the application of management principles to the

product functional factory. The proper implementation of this management

function in production process will implement continuous flow of

production.

The production management is an important function of the production.

Production must be carried out at the lowest costs and right quality goods

are produced at proper time. This can be ensured only through proper

planning and control of production.

The production department is in the control of production manager,

MUHAMMED YUSAF SHA. For production steel, the main raw materials

are ingots and billets which are purchased from various concerns. The

production target 150mt per day and input/output ratio is 100:93 which

means 93% of output is derived. Among rest 7% IS, 4% scrap and 3% is

loss. In production department there are around 150 employees.

FUNCTIONS:

To keep ISO quality products

Maximum production with high quality and quantity

To ensure high manpower productivity

To maintain good work environment in factory

To ensure safety and security to employees.

LOADING AND UNLOADING:

Loading and unloading is done in a semi-mechanical manner. Workers till

take the steel rods from the production place to the loading area. And from

there the machines will load those finished goods to and from the vehicles.

SCHEDULING:

The company is working in three shifts.

First shift 9:00 AM to 5:00 PM

Second shift 5:00 PM TO 8:00 AM

Third shift 1:00 AM to 8:00 PM

In the first shift there are 130 employees working with the concern. In the

second shift there are so employees working. And in third shift there are

so employees working with the concern.

PRODUCTION DEPARTMENT CHART

foreffman

PRODUCTION IN CHARGE

FOREMAN YARD SUPERVISOR QUALITY CONTROL IN CHARGE

CONTRACTORS

T/M FILTERS T/M CONTRACTORS CHEMIST SUB CONTRACTORS

MOBILE CRANE OPERATORS

LOADING CONTRACTORS

UNLOADING CONTRACTORS

HOUSEKEEPING HELPERS

LAB ASSIST

MILL HELPERS

MILL SHIFT IN CHARGE

R/M FITTERS

I/M FITTERS

DC FITTERS

FIREMAN

F/M HELPERS

MECHANICAL IN CHARGE

MECHANICAL FITTERS

MECHANICAL HELPERS

ELECTRICAL HELPERS

ELECTRICIAN

ELECTRICAL INCHAGE

TURNERS

WORKSHOP INCHARGE

SHAPERMAN

WELDERS

GAS CUTTERS

HELPERS

PLANT LAYOUT

Plant layout detailed with arrangement of machines and facility. Instead the

factory area, the machine should be arranged in such a way that production

flow smoothly. The type of plant layout adopted in GASHA STEELS

PVT.LTD. is process layout that is ,manufactures are arranged in such a

manner that production process is easily carried out in to machineries and it

is processed by cleaning, conditioning and milling. Process layouts are

found primarily in job shops or firm that produces customized, low volume

products that may be required different processing requirements and

sequences of operation of a similar nature of functions are grouped together.

TOTAL QUALITY MANAGEMENT TOOLS, POLICIES

Supply in time

Cost effectiveness

Adapting changes as required competing in the customer driven

market

Mentoring employees at all levels in reviewing quality and

productivity related objectives for continual improvement and

sustainable growth.

INVENTORY MANAGEMENT

As in the case of steel production in Kerala, there won’t be any excess stock

because the whole steel manufacturing concern can only satisfies 80% of the

aggregate demand. But there is a stores department in the company which

deals with inventory management. This department will collect and store all

the raw material required and will supplies necessary material in time and

order necessary material required.

MATERIAL REQUIREMENT PLANNING

Material requirement planning is done by stores department and that order

will pass to the purchase department. As per their strategy they had a steady

demand for material so the stored materials. They have introduced new

machines and all the work gives faster than earlier and according to that they

have ordered and stocked more billets for an advance of one month’s

production.

QUALITY PRODUCTION:

The company has certified by:

ISO 9001-2008

ISI 789/2008

AUDITING AND INSPECTION:

The auditing for the certification of ISO and ISI is done in a particular

duration. That is:-

ISO- once in 6 months.

ISI- once in a year

SAFETY MEASURES:

All the safety measures that a company must follow under the companies act

are following by the concern. As the company is giving the due importance

to the human resource also; the concern is very keen in the health and safety

measures.

Fire and safety measures

Machinery safety

Machinery guards

Safety alarms etc.

MACHINARY MAINTANANCE:

As the company is having a number of machineries, all machineries are

maintained on different intervals. The minimum maintaining period is 6

months. And some machinery is maintained after1 year. There is mechanical

in charge and his helpers to look in to these maintenance affairs.

PRODUCT STANDARDS :

The company is having two certifications for the product standardization.

ISO 9001-2008

ISI 789/2008

The ISO certification is audited and inspected by quality management

system. The ISI certification is audited and inspected by bureau of Indian

standards.

PRODUCTION PROCESS FLOW CHART

RECEIVING INGOTS/BILLETS FROM STORES AGAINST THE MATERIAL REQUIREMENT

INGOTS/BILLETS-PREHEATING IN FURNACE

REDUCTION PROCESS

PURCHASING 5mm, 6mm, 8mm, 10mm, 12mm (CTD& TMT) TO THE COOLING BED

SIZE CUTTING AS PER OUR REQUIREMENT IN LENGTH

SHIFTING TMT OF 8mm, 10mm, 12mm TO YARD FOR BENDING

PLAN-NIL, ANGLE-NIL, PLATES-NIL

STACKING AND LOADING TO THE TRUCK AS PER CUSTOMER ORDER

ONLINE Q.C INSPECTION

COILING

5mm, 6mm

SHIFTING CTD OF 5mm, 6mm TO TWISINGM/C BEDS FOR TWICING BENDING AND BUNDLING

TABLE NO. 4.2

TABLE SHOWING THE PRODUCTION OF THE STEEL DURING

THE YEAR 2008-2009 TO 2012-2013

YEAR PRODUCTION(Qty in MT)

2008-2009 26478

2009-2010 31279

2010-2011 38096

2011-2012 37961

2012-2013 38733

2008-2009 2009-2010 2010-2011 2011-2012 2012-20130

5000

10000

15000

20000

25000

30000

35000

40000

INTERPRETATION

The production during 2008-2009 to 2012-2013 shows an increasing trend

but during the financial year 2011-12 the production has slightly declined. It

may be due to less demand of the product in the market.

FINANCIAL DEPARTMENT

Finance is the life blood of every organization. It is the fact that business

need finance to make more money. Financial management is that managerial

activity which is concerned with the planning and controlling of the firm’s

financial resources. The managers are interested in this subject because the

most critical decision of a business enterprise are very closely related to

finance and an understanding of the theory of financial management

provides them with conceptual and analytical insights to make those

decisions.

STRUCTURE OF FINANCE DEPARTMENT

ACCOUNTS INCHARGE

ACCOUNTANT 1 ACCOUNTANT 2

CASHIER

OBJECTIVES

The objective of financial management or goals of business finance is to

maximize the company’s economic welfare. There are mainly two steps for

achieving this specific objective. They are;

PROFIT MAXIMIZATION

Profit earning is the main aim of every economic activity. No business can

survive without earning profit. Profit also serves as a protection aginst the

risk which cannot measure. Thus profit maximization is considered as the

main objective of the firm.

WEALTH MAXIMIZATION

This objective helps in increasing the value of shares in the market.

FUNCTIONS

Monthly accounting of invoice

Making correction in the price

Providing discount

Preparing and maintaining proper accounts

Retiring benefits

Salary distribution

MAIN REGISTERS USED

Cash book

Main general ledger

Purchase ledger

Sales ledger

Significant accounting policies used by the company are:-

Basis of preparation of financial statement:

The financial statement has been prepared under the historical cost

convention in accordance with the generally accounting principles and the

provisions of the companies act 1956. The company follows mercantile

system of accounting and recognizes significant items of income and

expenditure on accrual basis.

Fixed assets:-

Fixed assets are stated at cost of acquisition net of recoverable taxes

accumulated depreciation and impairment loss if any.

Depreciation:-

Depreciation on fixed assets has been provisions on straight line method at

rates prescribed in schedule XIV to the company’s act1956. Depreciation on

addition to fixed assets made during the year is calculated on pro-rata basis

from the month of the addition.

Impairment of assets:

An asset is treated as impaired when the carrying cost of assets exceeds

its recoverable value. An impairment loss is charger to profit and loss

account in the year in which an asset is identified as impaired. The

impairment loss recognized in the previous accounting period is reversed

if there has been a change in the estimates of recoverable amount.

Foreign exchange transaction:

I. Transactions dominated in foreign currencies are recorded at the

exchange rates prevailing on the date of transaction or that

appropriate the actual rate at the date of transaction.

II. Monetary items dominated in foreign currencies at the yearend are

related at the yearend rates.

III. Non-monetary foreign currency items are carried at cost.

IV. Any income or expenses on account of exchange difference either

on settlement or an translation is recognized in the profit and loss

account except in case of long term liabilities, where they relate to

acquisition of fixed assets, in which case they are adjusted to the

carrying cost of such assets.

Ion of inventories

Long term investments are carried at cost. Provision for diminution in the

value of long term investment is made only if such a decline is other than

temporary.

Retirement benefits:

The company’s contribution to provident fund and employee’s state

insurance are debited to profit and loss account. The company has made

provision for gratuity in respect of employee’s who have put in minimum

five years of contribution service with the company and the same is

debited to the profit and loss account. Regarding leave encashment, there

is no policy for the payment of the same is debited to the profit and loss

account. Regarding leave encashment, there is no policy for the payment

of the same, and hence no provision is made.

Valuation of inventories:

a) Raw materials are valued at the cost of purchase including

transportation expenses.

b) Finished goods are valued at the cost of production or realizable

value whichever is less

c) Work in progress is valued at the cost of production.

d) Scrapped rolls/moulds: as valued and certified by the managing

director.

e) Stores and spares are valued at the cost of purchase.

f) Scrap is stated at estimated realizable value.

Revenue recognition:

Revenue is recognized only when it can be reliably measured and it is

reasonable to expect ultimate collection. Revenue from operation

includes sales of goods but excludes value added tax, excise duty

adjusted for discount (net). Interest income is recognized on time

proportion basis taking into account the amount outstanding and rate

applicable.

Excise duty/value added tax:

Excise duty is accounted on the basis of payment made in respect of

goods cleared from the factory.

Borrowing cost:

Borrowing cost that is attributable to the acquisition or construction of

qualifying asset is capitalized as a part of the cost of such assets. A

qualifying asset is one necessarily takes substantial period of time to get

ready for its indented use. All other borrowing cost is charged to profit

and loss account.

Provision for current taxes and deferred tax:

Provision for current tax is made after taking into account consideration

benefit admissible under income tax, 1961. Deferred tax is recognized on

timing difference; being the difference between taxable incomes and

accounting income that originate in one period and are capable in one or

more subsequent periods.

Segment reporting:

The company does not have any reportable business or geographical

segments.

TYPES OF ASSETS AND LIABILITIES

ASSETS:

a) Share capital

b) Current assets

c) Fixed assets

d) Sundry debtors

e) Cash and bank balance

LIABILITIES:

a) Current liabilities and provisions

b) Loans and advances

c) Reserves and surplus

d) Sundry creditors

SOURCES OF FUND AND RESOURCES

Sources of fund

Share capital: 32500000

Reserves and surplus:59477389

Long-term fund:124613024

Total:216590413

FRINGE BENEFITS GIVEN TO EMPLOYEES:

Company car

Accommodation or reimbursement of rental charges

Medical bills reimbursement or free medical care for

employees(extending for the family as well as well and or children)

Gift in cash or kind of festivals

INTERNAL RATE OF RETURN:

The internal rate of return offered by company is 13%.

HUMAN RESOURCE DEPARTMENT

Human resource department is the most important asset of every company. It

is the backbone of every organization. The success and failure of every

company is depending upon its human resource. It is a fact that the people

are the main driving force behind any organization.

Employment of competent and specialized person at various levels is one of

the important reasons for the continuous success of GASHA. More over

employment of women at certain key areas of operations avoids reasonable

labor problems to an extent.

The key factor in the growth of GASHA is mainly the good and healthy

employer-employee relationship. About 300 employees are working with

one heart and institution, where 90% comprises men workers.

STRUCTURE OF HUMAN RESOURCE DEPARTMENT

OBJECTIVES

Man power planning

Recruitment

Trading and development

Induction

Wages and salary

Statutory compliance

Leave administration grievances redressed

Personal counseling

Compensation and benefit

Welfare

Performance evaluation

BORD OF DIRECTORS

CORPORATE HEAD

SENIOR MANAGER

OFFICERS

According to the guidelines of ISO the managers and supervisors shall have

enough knowledge of principles and practices to be able to judge potential

risks, take corrective action and ensure that effective monitoring and

supervision take place.

ACTIONS TAKEN

A 16 hours training to every workers

Induction to training

Proper documentation of various activities and it is revision whenever

needed

The department is responsible for making all the personnel aware of their

role and responsibility in protecting food from contaminators

.RECRUITMENT

Recruitment is the process of filling the vacancies. It is the first step in

selection process.

In GASHA direct recruitment method is used frequently for recruitment. The

firm places job advertisement in Malayalam and English news paper and in

TV, media and tries to attract as much as caliber people from the outside.

The companies also have internal recruitment for filling the post by efficient

and skilled workers from the rank; promotion and Panchayath are preferred

local candidate who belongs to surroundings.

SELECTION

In GASHA the selection processes only through direct interviews.

TRANSFER

Employees are transferred to the different departments on the basis of their

skills.

TRINING NEED ANALYSIS

GASHA STEELS are providing training and development to the employees.

Each supervisor will closely watch the requisite group of employees and

they will report it top management. This is the way how GASHA provides

training to employees.

TRAINING TO THE EMPLOYEES

ON THE JOB TRAINING

A. Job instruction training(JIT)

The JIT method is four step instructional process involving preparation and

performance try out and follows up. It is used primarily teach workers how

to do their current jobs. The four steps followed in JIT method are:

The trainee receives on interview of the job, its purpose and its desired

outcomes with a clear focus on the relevance of training.

The trainer demonstrates the job in order to give the employees model to

copy.

Finally the employees do the job independence without supervision.

B. Coaching

Coaching is a kind of daily training and feedback given to employees by

immediate supervision; it involves continuous process of learning by doing.

It may be defined as an informal, planned training and development activity

provided by supervisors and peers.

COACHING COULD BE PUT TO GOODS USED WHEN:

When an employee’s demonstrates a new company.

An employee expresses interest in a different job within the

organization.

An employee’s seeks feedback

An employee expressing low morale, violating company policies or

having performance is problems.

An employee needs help with a new skill following a formal training

program.

Effective working obviously requires patience and communication skill

it involves;

Explaining appropriate ways of doing things.

Making clear why actions were taken

Stating observation accurately

Offering possible alternatives

Following up.

C. Mentoring

Mentoring is a relationship which senior manager in an organization

assumes the responsibility for grooming a junior person. Technical

interpersonal and political skill are generally conveyed in Such a

relationship from the mare convenient in such a relationship from the more

experienced person. The main objective of mentoring is to help an employee

attain psychological maturity and effectiveness and get integrated with the

organization. Formal mentoring can be very fruitful, if management invests

time and money in such relationship building exercise.

D. Job rotation:

This kind of training involves the movement of trainee from one job to

another this helps him to have a general understanding of how the

organization functions .The purpose of job rotation is to provide trainees

with a larger organizational perspective and a greater understanding of

different functional areas as well as better sense of their own carrier

objectives and intervals. Apart relieving boredom, job rotation allows

trainees to build rapport with a range of individuals with the organizational,

facilitating future co-operation among departments.

OFF THE JOB TRAINING

Vestibule training

In this method the employees are trained in a separate part of the

organization. Actual work conditions are stimulated in a class room.

Materials those are used in a job performance are also used in the training.

role playing

In role playing method involves human interaction, which is realistic

behavior in imaginary situations. This is mostly used for developing inter

personal Lecture Interactions and relations.

lecture method

It is a treatment and direct method of instruction. The instructor organizes

the material and gives it to a group of trainees in the form of a talk. To be

effective the lecture must motivated and create interest among trainee.

conference and discussion

This method involves a group of people who pose ideas, examine and share

facts, ideas and date, test assumptions and draw conclusions all of which

contribute to the improvement of the job performance. The discussion

involves two way communications and hence feedback is provided.

programmed instruction

The subject matter to be learned is presented in aeries of carefully planned

sequential units. This trainee goes through these units by answering question

or filling the blanks. This is expensive and time consuming.

PERFORMANCE APPRAISEL SYSTEM

GASHA is following a special type of system of apprising the workers that

is the key result area. Here the performance of individual employees

evaluated by his immediate supervisor officers. The officers will evaluate

the employee’s performance on the basis of result produced by them and

give report to the board for a particular period of time. If the bodies satisfied

he/she will forward it to the top level management by recommending on

incentive or promotion.

MOTIVATIONL METHODS

The company is using various techniques to motivate its employees. Then

only it can achieve high productivity and high quality.

Salary hike

Bonus

Incentives

Allowances

O.T facilities

WAGES AND SALARY

The workers are paid in two systems

Piece rate system

Under piece rate system of payment, wages are paid on time production goes

up when wages are paid according to piece rate system. This method of

payment prevails on the packing section.

Salary system

This method of payment is applicable for rest of workers which also

includes the loading and unloading workers.

LOBOUR WELFARE FESILITIES

The company provides a lot of non-monetary benefits to their employees.

Some of them are as follows;

transportation

Transportation provided to employees to differ destination at a

subsidized rate.

Canteen facilities

All employees are given free food at GASHA.

personal protective equipment

Personal protective equipments like head wear, aprons and

uniforms are provide to the worker.

Medical insurance

The employees are providing medical claim policy, which gives

free medical insurance to the employees and his or her family.

Pension scheme

The scheme has been formulated for those employees who have

retired from their job.

Annual medical check-up

The employees are provided with free annual medical check-up

facilities.

MARKETING DEPARTMENT

Marketing is the core of all management functions one of the important

reasons behind the success of the company is its marketing strategy

compared to their rivals. The system followed by eastern is very unique and

it has been very effective. They deal with the whole slavers and retailers

directly at their door step with the help of around 100 vehicles going in as

many different routs covering the entire state.

MARKETING DEPARTMENT CHART

FUNCTIONS

Developing marketing strategy

Capturing marketing insights

Connecting with customers

Building strong brand image

Delivering value to customers

SENIOR MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR SALES EXCECUTIVE

SALES TEAM

MARKETING STRATEGY

Route sales

Factory flesh outlet

Intercompany sales

Export sales

MARKETING TOOLS AND TECHNIQUE

Product profile:

The company now manufactures CTD bars(cold twisted deformed) of;

5mm 6mm

The cold twisted deformed process gives medium strength to the bar. A CTD

bar is produced by cold twisted performed process and TMT bars (thermo

mechanically treated) of

8mm 10mm 12mm

The thermo mechanically treated process impair high strength to the bar

using the latest technique using TMT. TMT is produced by thermo

mechanically treated process and not by cold twisting, therefore there is no

corrosion residual stresses in the bar, which result in, corrosion resistance

characteristics.

Earthquake resistance

Heat resistance

Corrosion resistance

The sales executive for each route gives order to be dispatched to each sales

depot. He also takes care of the billing and cash transaction. After making

sale, a sale invoice is made the summary is given to the cash department.

The sale assistant places the order to different shops. After delivery of

goods, the vans return verifying the order form, the stock is checked. The

accents are maintained on weekly basis. The company has round 40 retailers.

Mainly cash transactions are undertaken and credit facility is entitled to only

8 parties.

On every Monday following the production week, the products are

distributed from the groups sales depot to every retailer by company’s own

vehicles. The advertisement through these vehicles has no additional cost.

There a number of vehicles carrying steels distributing the various products

across the state. To gives maximum publicity and advertisement to company

and the brand.

PRODUCTS SELLING PROCESS

RECIEVING THE ORDER FROM CUSTOMERS EITHER BY DIRECT VISIT/OVER PHONE/POSTAL REQUEST/MALE

ENTER THE ORDER TO SCHEDULES ENTRY AND MONITORING FORM

VERIFYING THE FEASIBILITY AND AVAILABILITY OF GOODS IN STOCK YARD

SALES ACTIVITY TO BE CARRIED OUT BY DISPATCH DEPARTMENT

CUSTOMER SATISFACTION

TABLE NO:4.3

TABLE SHOWING SALES DURING THE YEAR 2008-2009 TO

2012-2013

SALES(IN LAKHS)

2008-2009 13201.52

2009-2010 11038.81

2010-2011 13202.59

2011-2012 1583.89

2012-2013 19798.72

GRAPH NO 4.3

GRAPH SHOWING SALES DURING THE YEAR 2008-2009 TO

2012-2013

2008-2009 2009-2010 2010-2011 2011-2012 2012-20130

5000

10000

15000

20000

25000

SALES IN LAKHS

SALES IN LAKHS

INTERPRETATION

The above graph the sales of the company during the year 2008-2009

to 2012-2013. The company’s sales shows an increasing trend during

these years expect in 2011-2012.

SALESPROMOTIONAL ACTIVITIES

The main sales promotional activities of GASHA STEELS PVT. LTD., are

advertisement. The advertisement of the company creates awareness about

the standard and the quality product. Hence the ISO 9001-2008 certified

standard convince the end users in this way.

The sales promotional activities are effective. The services of the company

were spontaneous and reliable, so that the discounts given by the company

are good to create a purchasing power to the customers.

Being ISO 2008 standard company customers prefers this product rather

than other company’s products. So the GASHA STEELS got a major market

share all around Kerala.

PRODUCT PUBLICITY

Product publicity is mainly done through advertisement. And high quality

products sold by GASHA leads to a higher product publicity among the

public.

TARGET ACHIEVEMENT METHOD

The GASHA steels will fix certain level of targets to each sale executive.

And all are suppose to achieve their target. By this way GASHA is

achieving their sales target.

CUSTOMERS BENEFICIAL AND SATISFACTION

IDENTIFICATION METHODS

Sales manager had assigned a customer satisfaction identification duty to the

sales executives. So the customers are directly enquired and they are directly

analyzed to check the satisfaction.

IDENTIFICATION OF CUSTOMER EXPECTATION

As the company is only producing CTD and TMT steel bars, the company is

not taking any actions to find the customer expectation. Because the

company is not intended to expand their production to any extend. Because

now also the company can fulfill 80% of products demand.

CUST0MER FULFILMENT AND SERVICE

The major customers of GASHA are Kairali TMT and AP steels. The

company is more concentrating on high quality certified products. The

company is delivering the products at right place. So the customers are

completely satisfied when they get high quality products at right time when

they needed.

CUSTOMER ORDERS RECEIVE AND FULFILMENT

rer

METHODS FOR OVERCOMING COMPETITORS

High quality products

Proper delivery of goods and services

After sales service

Employee- employer relationship

Receiving order from customer either by direct visit or over phone or postal request

Either the order to schedule entry and monitoring form

Verifying the feasibility and availability of goods in stockyard

Sales activity to be carried out by dispatch department

Customer satisfaction action if needed

Receiving enquiry by marketing executive / existing customer / through telephone / working etc

Entries to the enquiry register and review the feasibility

Preparation of quotation based on the managing directors’ advice

Quotation handover / deliver by post or through mail

CUSTOMER RETAIN MANAGEMENT

GASHA well concentrating on retaining the customers. Because they know

customers are the backbone of every organization. They are taking necessary

steps for that such as:-

High quality products

Proper delivery of goods and services

After sales services

CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is broadly recognized widely

implemented strategy for managing and nurturing a company’s interactions

with customers, and synchronizes business process principally sales

activities, but also those for marketing, customer service, and technical

support.

The overall goals are to find,

o Attract and win new clients

o Nature and retain those the company already has,

o Entice former clients back in to the fold, and

o Reduce the cost of marketing and client service

Customer relationship management denotes a company-wide business

strategy embracing all client-facing departments and even beyond.

SYTEM DEPARTMENT

INFORMATION TECHNOLOGY DEPARTMENT

Artificial intelligence is necessary for the development of mankind.

Today the term terminology has ballooned many aspects of computing

and technology, and the term is recognizable than ever before. The

information technology umbrella can be quite large covering many fields.

IT professionals perform a verity of duties that are range from installing

applications to designing complex computer networks and information

databases.

BOARD OF DIRECTORS

IT MANAGERS

SENIOR OFFICER

OFFICERS

DUTIES THAT OFFITIALS PERFORM IN ITS DEPARTMENT

INCLUDE:-

Data management, Computer engineering, Databases design, Software

design, Management of information systems, Systems management or

System administration.

OBJECTIVES:-

Ensure the protection and security of data

Minimize duplication of effort, services and resources

Eliminate insufficient and costly redundancies

Eliminate non-compatible standards and architectures

Identify obstacles for departments wanting to move computing

operations to the divisions of information technology and solve it

immediately.

The whole organization is computerized. All the departments are

connected via network. GASHA uses oracle based software called

ORION, which has been customized to suit the needs of this particular

organization. The networking is done through a BSNL lease line.

The company has a good IT team for implementing the ERP

(Enterprise Resource Planning) which has started in the year 2001 and

was centralized in the year 2005. ERP enables fast transaction and is

systematic in all its functions. ERP also helps in decision making. The

package used in Orion 7.4 and Orion 10.x (centralized database). The

package is provided by Info Tech (Technologies) Chennai.

The main advantage of using it in an organization is to make

information readily available. So in Gasha also information is readily

available and this makes decision making much faster and accurate.

SOFTWARE CONFIGURATIONS

ESSL(personal attendance monitoring system)

Microsoft office

Tally 9

Centralized software:-

ERP-Orion fronted developer backend-oracle developed by ICICI

info tech

Accounts department –ECPL software developed by GASHA –it is

used to make a payment request

Home developed software is fuel management software

It is used in workshop of GASHA pump management.

Antivirus:- MS fore friend (identification of error)

Full centralized scanning from the corporate office.

HARDWARE CONFIGURATION

RAM 512MB AND ABOVE

HD 80GB AND ABOVE

INTEL CORE 2DUO PROCESSOR AND ABOVE

PROCESSOR SPEED:3.2 GHZ

16” LED MONITOR

All accessories are of by HP

COMPUTERISED ACCOUNTING

All the accounts are computerized, when we switch over to computerized

accounting for first time. We should create all ledgers and enter opening

balances and classify at this stage. Just enter all the transaction in

vouchers, click the journalisation, position to ledger, and preparation to

trial balance, financial statement etc is done by the company.

FEATURES OF THE SYSTEM

The system is protected from the attack of viruses using advanced anti-

virus program. All systems are interconnected with each other by a

server.

PROS AND CONS OF THE SYSTEM

System has more advantages compared with disadvantages.

Works in stipulated time with precision

All the computers are inter-connected

The staff don’t want to rush out from office or systems to system

CONS

There is a chance of problems which results in the loss of data

Virus attack will destroy data

Hacking of the data of the company.

SWOT ANALYSIS

SWOT analysis is tool for auditing on organization and its environment. It is

the first stage of planning and helps marketers focus on key issues. SWOT

analysis is a strategic planning tool used to evaluating the strengths,

opportunities and treats involved in a project or in a business venture or

project and identifying the internal and external factor that are favorable and

unfavorable to achieve that objective.

INTERNAL FACTOR

The strength and weakness are internal factor of an organization. The

internal factor may be viewed as weakness depending upon their impact on

organization’s objectives.

EXTERNAL FACTOR

The opportunities and treats presented by the external environment

The external factor may include macroeconomic matters,

technological change as well as changes in the market place or

competitive position.

SWOT analysis may be used any decision making situation when a

desired end state has been defend. SWOT analysis may also be used

in precise planning and preventive crisis management.

The SWOT analysis provides information that is helpful in matching

the firm’s resource and capabilities of competitive environment in

which it operates.

SWOT ANALYSIS OF THE FIRM

SRENGTHS

Quality product

Good marketing network

Brand image of the company

Financially strong

A good work culture and environment

WEAKNESS

Lack of skilled workers

Lack of proper support from the government

Lack of proper electricity facility

OPPORTUNITIES

Wide spread market in neighboring

Enough change for entering in to international market

New technology and markets (should be updated)

THREATS

Healthy completion

Probable entry of foreign entities

Government rules and policies

Thus SWOT analysis is useful strategic planning tool and is based on

the assumption that if the manager carefully reviews internal strengths and

weakness and external threats opportunities, a useful strategy for ensuring

organizational success can be formulated.

CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS:-

The company gets raw material without any interruption, since company appoints agents for importing materials.

The company’s raw material purchase shows an increasing trend during the 2008-2009 to 2012-2013 except in 2011-2012.

The TQM tools and policies are very effective and it helps in continuous improvement in quality of production.

The company is having a production target of 150 TMT per day and above 150 employees working in 3 shifts to achieve the target.

The production during 2008-09 to 2012-13 shows an increasing trend but for the financial year 2011-12 the production has declined.

The share capital of the company remains unchanged during last 5 years. The company mainly deals with cash transactions and credit facilities given only

to 8 parties in order not to have bad debts. Finance department is very keen to settle the clients with respect to the fringe

benefits of the employees like accommodation, medical bills etc. The employees are being selected only through direct interviews. The company provides incentives and also courter facilities for the workers. The company’s promotional activities only through advertisement. The customer relationship management of the company ensures the

coordination of people process and technology. The company’s sale shows an increasing trend during 2008-09 to 2012-13 except

in 2011-12. It may be due to decrease demand for the production has declined on 2011-12.

The company is fully computerized using oracle based software called Orion. The ERP implemented in the company enables faster/ systematic functions.

SUGGESTIONS

The company may continue the current policies of TQM and it helps in improving quality of production.

The company can adopt alternative method for selecting employees

The company may continue the fringe benefit given to the employees, it may ensure employee satisfaction.

The company can adopt other sales promotional activities with advertisement.

By providing more incentive, the company can improve morale of employees.

The advantages expected from implementing ERT and ESSI personnel attendance mentoring system, may be fully avail and system department may accelerate other automatic process needed in the company.

CONCLUSSION

GASHA STEELS Pvt. Ltd. is fully dedicated to reinforce steel industries; it is a branch of Kalliyath Group of company’s today’s leading entity in South India with total group turnover of 100crores.

Organizational study on GASHA STEELS PVT. LTD. helped me to gain in-depth knowledge about the company and the workings of six various departments. In short span of the study the company’s management provided me a good exposure to the working and management.

On studying the purchase department, I could understand the basic functions of the department and their policies relating to the purchase. The production department provides the information about production process, policies relating to TQM and the production during past 5 years. From studying the finance department I could understand the functions, objectives and accounting policies used by the company. The HR department of the company put a light on HR policies relating to the recruitment, selection, training and termination of employees. While studying marketing department, I could gain knowledge about marketing tools and techniques, product selling process etc. following by the company. As far as the system department is concerned I could understand the software configuration used and objectives set for this department. To wrap up the study, I may say that the six departments in the company, performs their functions efficiently to achieve the goals particularly and generally for the betterment of the company.