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this report on masala(spice)
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A
Project Report
On
“DHANHAR EXIM PVT. LTD.”
(S.Y.B.B.A-2010-2011)
Guide By Submitted by:
Mrs. Jagruti Patel Gajera Ankit
Harkhani Nirav
Tank Pranv
Soni Jaimin
Submitted to:
Bhagwan Mahavir College Of Business Administration,
V.N.S.G.U,
Surat.
1B.M College of Business Administration Page 12
Acknowledgement
I would like to thanks to Veer Narmad South Gujarat University to include this summer
training in the curricular of B.B.A. program.
I express my deep sense of gratitude to “DHANHAR EXIM PVT. LTD.” to allow me
to do summer training and giving me their best to accomplish the same.
I would also thank to all faculty members of college to help me greatly in preparation and
guidance during the training.
My special thanks to one and every faculty member in the dept for their suggestions.
I would like to thank with great pleasure on colleagues who helped me in successfully
completed this project.
Date:
Place:
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Executive Summery
We here at completion of our summer training at Dhanhr Exim Pvt.Ltd. have got a good
knowledge in the various area of management
The marketing department plays an important role for increase in sale we have also got
the good knowledge of different product of in spite of such a wide range of product
The most important department is the production department has also given us a brief
idea about the company process layout which done in a centime manner we also come to
know about the regular quality control method which maintain the quality of product
The human resource department department has given us a clear idea of how to maintain
employ relationship welfare activity in finance department of the company we studied the
ration and working capital
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Declaration
Here by declare that this training report is prepared with my own efforts. This report has
been prepared at “DHANHAR EXIM PVT. LTD.” during 01/05/2011 to 15/07/2011
with my skills and management tools and technique, which we learnt in collage.
This report has not been previously submitted by any one to any university, for award of
any other degree.
Date: Gajera Ankit
Place: Harkhani Nirav
Tank Pranv
Soni Jaimin
4B.M College of Business Administration Page 12
INDEX
NO TOPIC PAGE
NO
1 INTRODUCTION
1. Mission and value
2. Profile of the company
3. Competitor
4. History of the company
5. SWOT Analysis
2 MARKETING DEPARTMENT
1. Structure of Marketing department
2. Products of the Company
3. Packaging & Labeling
4. Price of Products (Pricing Policies)
5. Organization’s buying process
6. Product life cycle (PLS) & Marketing Strategies
7. Channels of distribution
8. Marketing / Sales dept. at a glance
9. Promotional Activities
3 HUMAN RESOURCE DEPARTMENT
1. Structure of HR department
2. Activities of Personnel / HR Department
3. Recruitment & Selection
4. Human Resource Planning
5. Training & Development
6. Promotion & Transfer
7. Performance Appraisal
8. Wages & Salary Structure
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9. Employee Welfare
10. Human Resource Audit
11. Hierarchy Structure of Organization
12. Absenteeism Rate
4 PRODUTION DEPARTMENT
1. Structure of production department
2. Activities of Production Department
3. Process Layout / Product Layout
4. Technology used
5. Machinery Operations Stores
6. Plant Location, Controls of R.M. in Process & finished
goods
7. Quality Control
5 FINANCE DEPARTMENT
1. Budgeting & Planning
2. Taking Loans (Sources of funds)
3. Issuing Shares (if applicable)
4. Providing funds to Different Departments
5. Balance Sheet & Annual General Report
6. Working Capital, Cash, Inventories,Receivables etc.
6 FINDING
7 SUGGESTION
8 CONCLUSIONS
9 BIBLOGRAPHY
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Chapter 1. Introduction
Mission and value
Profile of the company
Competitor
History of the company
SWOT Analysis
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1. MISSION& VALUE1. MISSION& VALUE
One of the greatest strengths of the DHANHAR EXIM PVT. LTD Pvt. Ltd. Company is
its ability to develop customized products. This policy of the DHANHAR EXIM PVT.
LTD Pvt. Ltd. Company has helped to build close ties and mutual trust with customers
globally, thus increasing worldwide acceptance of its products.
Mission
To delight the customer by continuously developing new products tuned to evolving
needs and maintaining high standards of quality and efficiency in production and prompt
delivery.
Values
1. High priority to customer satisfaction.
2. High standards of consistent quality and reliability.
3. Promoting use of modern technology and practices.
4. Minimizing profitability for cost-effectiveness.
5. Commitment to community development and environment protection.
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2. Profile of the Industry
How Spices Shaped History
The history of spice is almost as old as human civilization. It is a history of lands
discovered, empires built and brought down, wars won and lost, treaties signed and
flouted, flavors’ sought and offered, and the rise and fall of different religious practices
and beliefs. Spices were among the most valuable items of trade in ancient and medieval
times.
As long ago as 3500 BC the ancient Egyptians were using various spices for flavoring
food, in cosmetics, and for embalming their dead. The use of spices spread through the
Middle East to the eastern Mediterranean and Europe. Spices from China, Indonesia,
India, and Ceylon (now Sri Lanka) were originally transported overland by donkey or
camel caravans. For almost 5000 years, Arab middlemen controlled the spice trade, until
European explorers discovered a sea route to India and other spice producing countries in
the East.
Spices and the Age of Exploration
The search for a cheaper way to obtain spices from the East led to the great Age of
Exploration and the discovery of the New World. European explorers such as Ferdinand
Magellan, Vasco da Gama, and Bartholomeu Dias began their long sea voyages to
discover a sea route to the sources of spices. Christopher Columbus went westwards from
Europe in 1492 to find a sea route to the lands of spices but found the Americas. Eight
years later, the Portuguese navigator Vasco da Gama discovered a sea route around the
southern tip of Africa, eventually reaching Kozhikode on the southwest coast of India. Da
Gama returned from his voyage with a cargo of nutmegs, cloves, cinnamon, ginger, and
peppercorns.
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Spice Industry Overview
Spice industry has been witnessing phenomenal growth rates both in the international and
domestic sector. The growth in this sector can be attributed to the change in the lifestyle
patterns of the consumers all over the world. The shift in the consumption trend toward
natural products has also contributed to the increased global demand of spices and
culinary herbs. Spice and derivatives market is booming because these products find
applications in a number of industries including pharmaceutical, medicine, beverages,
food processing, personal hygiene products to name a few.
Developing countries especially in the Asian continent are the major producers of variety
of spices. A large percentage of international and domestic trade takes place in the dried
form. India, Indonesia, China are few of the prime producers of a variety of high quality
spices and also significant contributors to the global spice trade.
The culinary herb market is also expanding though the production areas are widely
distributed. India is one of the prime producers and suppliers of raw herbs to USA and
the EU. This is a labour intensive industry; therefore producers must have a sound
knowledge of the methods and processes involved in the production of herbs and spices.
Indian Industry Overview
India has traditionally been known for its spice and culinary herb production. It is one of
the largest spice producing and consuming country. Its strategic location, climatic
conditions, advanced production processes and availability of cheap labour makes it
advantageous for the producers to ensure large scale production of quality spices and
herbs.
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India's Share in the Global Spice Market
The Indian spice industry is booming with a substantial increase in exports over the past
few years. India accounts for nearly 45% and 30% in terms of volume and value in the
world spice trade.
The booming global spice market also poses good opportunities for the Indian spice
industry to provide quality spices at competitive prices. India faces stiff competition form
China, Malaysia and Pakistan in terms of pricing of the products. Manufacturers should
therefore ensure consistency in supply, product quality, pricing and marketing strategy to
increase the share in exports.
Producers are incorporating latest methods and technologies to ensure higher quality of
spices and herbs. India is one of the prime exporters of pepper, chilies, turmeric, seed
spices and spice derivatives to the rest of the world. USA, EU, Japan and Srilanka import
these Indian spices in large volumes.
India's share in Global Spice Derivative Market
Spice derivatives can be categorized into spice oil, oleoresins and essential oils. The
demand for spice derivatives is also increasing due to the hygiene, standardization and
consistency factor. India contributes nearly 70% to the world spice derivative market. It
exports largely to the US, EU etc. Indian southern states including Kerala, Karnataka and
Tamil Nadu provide concentrated oils and oleoresins for use in perfumery,
pharmaceuticals, foods processing and industrial chemical industry.
Government Initiative
Indian Government is providing financial assistance to farmers, growers and spice
producers and has also taken certain steps to ensure the availability of better quality
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spices, more hygienically processed spices in order to boost exports. Indian spice board
also provides financial and technical assistance to farmers.
Growth in Spices Market
The Indian spice market has shown remarkable growth in spice and culinary herbs
exports. Indian spices manufacturers are making substantial efforts to improve the quality
of spices backed up by technological advancement in order to tap the international
market. Advanced technologies such as carbon dioxide extraction, cryogrinding,
encapsulation of spice oil is being undertaken to ensure high quality of spices and their
derivatives.
3. Competitor :-
It includes all the actual & potential rival offering & substitute of their product a buyer
might be consider. The company may be of monopoly, total competitive or oligopoly.
There are many masala brands against DHANHAR EXIM PVT.LTD as like
I. S.K Masala
SK Masala is one of the manufacturers of Indian
cooking spices like turmeric powder, curry powder,
fenugreek seeds, cumin seed, cardamom, chilly powder from India. The company
is also an importer of cooking spices.
These authentic delicacies are completely free of preservatives and their exotic
flavours give you a taste of rich traditional culinary art that is uniquely Indian.
The products are offered in various categories to make a wholesome meal
experience.
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II. Everest masala,
For more than 45 years, Everest has shaped the
preference for branded spice in a country where
home-made blends were the norm since time immemorial. It is estimated that over
20 million households regularly use Everest spices that are available in around
400,000 outlets in more than 1000 towns across India.
Everest spices are also available in the USA, Middle East, Singapore, Australia,
New Zealand, East Africa, and in many other countries, where non resident
Indians trust Everest to provide them the authentic taste of home
III. bharat masala,
started the Masala Business on 26th January 1953. it
was just like a home product in the beginning. He
opened a new outlet in 1996 near chouta Brdige, the
heart of Surat City. Now BHARAT MASALA is a bigger word and household name
in Surat. In fact its a brand name in the region.
Now BHARAT MASALA crossed the national boundary and reached overseas
countries like U.A.E. and faraway U.S.A, CANADA, and the U.K
IV. 77 masala,
The organization is under the process to implement ISO
22000 and AGMARK
There are 34 Instant Mix products.
V. MDH masala,
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Today range of 52 products anailable in over 140 different packages
VI. gits masala ,
VII. a-one masala
VIII. sabras masala,
IX. Yamuna masala,
X. lajawab masala
XI. gaj raj masala,
XII. Gajanand Masala,
XIII. Ramdev Masala,
XIV. Sahaj masala
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4. History of Company:-
DHANHAR EXIM Pvt. Ltd. introduces itself as a leading manufacturer and exporter of
Indian particularly Masala’s, Hing’s and others. Established on 1966, the company has
always followed the philosophy of providing quality products and services to our ever
increasing clientele. Today DHANHAR has become a name synonymous to Indian
spices, its tastes and aroma; and has become a name of repute in spices and hing
Companys.
The name “DHANAHAR” itself connotes “MASALA”
DHANHAR EXIM PVT. LTD starting in the home place and its first product is “hing”.
On this time DHANHAR EXIM PVT. LTD manufacturing at “Ambaji Road, Nani
Chipava.” Dhanhar is not first name of the brand. Before Dhanhar, its name is
“MANSUKH KANTI DOUBLE POPAT BRAND”, that is the first name of the
Dhanhar.
Meaning of the Dhanhar name;
DHAN means “LAXMI”
HAR means “MAHADEV”
DHANHAR name comes of the two dynamic people, first is DHANSUKHLAL and
second is HARKISHANLAL.
DHAN comes of the DHANSUKHLAL
&
HAR comes of the HARKISHNLAL
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History – An Overview
Forty Five year back, two dynamic entrepreneurs, Mr.
Dhansukhbhai Chhabildas Wankawala pioneers in
spices / hing industry and connoisseurs of Indian
tastes, joined hands together to start DHANHAR
EXIM PVT. LTD; supported by Mr. Bipinchand
Chhabildas Vankawala; a mechanical engineer by
profession. The firm started as a gruh udyog,
manufacturing hing, graduated in terms of size and
volume; obviously due to healthy response from the market. In the 1972, a manufacturing
plant was established in Surat. The company started manufacturing spices in 1976 with a
single product “Dal Shak Masala” and has consistently climbed up the growth ladder
since. The company at present is manufacturing more than 30 different spices. For bulk
orders, we can customize the products according to your requirements.
1990, a major milestone was achieved when the company got “AGMARK” certification
for its Hing. In 1995, same certification was accorded to Spices.
When company started, it goes in the loss, but after some time loss converted in the big
and big profit. In the 1977 the price of the “Dal Shak” masala was just 7 RS. In 5 Kilo.
So, it’s very chipper. In the 1988 Hing’s packaging stared and published name of the
“BHANDHANI HING” and also developed the brand name of DHANHAR EXIM PVT.
LTD. All the production by manually, no machine work of this time. On this time means,
1988; the staff was just 10 people in DHANHAR EXIM PVT. LTD and now the staff are
about 62 people in DHANHAR EXIM PVT. LTD. Manually work’s time period is 1988
to 1996, means about 8 year.
Under the able guidance of the promoters, the company has reached to a position, par
excellence. Mr. Hitesh Wankawala (B.Com. L.L.B.) And Mr. Jignesh Wankawala
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(B.Com), able sons of Mr. Dhansukhbhai joined business in 1992 and 1998 respectively.
Mr. Hitesh looking after Sales Department whereas Mr. Jignesh is looking after
Production and Quality Control Departments.
The new entrants are following their fathers’ footsteps and have the enough dynamism
and acumen to lead the company to new heights.
The company boasts of modern machinery and high technology to attain the quality
without losing the traditional aroma of Indian spices. Our products are well known for
their high purity.
The reliability, flexibility, competitive pricing and prompt service have been the pillars of
the company’s reputation and success.
Office:-
Dhanhar house,
Bhajiwadi pole,bhagal char rasta,
Surat – 395003
(Gujarat) India
Production house:-
Survey no. 167,
Ashwini kumar road,
Nr, shamshan bhumi,
Fulpada, Surat,
(Gujarat) India
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Fact Sheet
Company Detail
Year of Establishment 1966
Legal Status of Firm Private Ltd. Co.
Registered under Indian Companies Act
1956
Income Tax Registration No. AADCD2614D
Central Sales Tax No. 24720601590C
Value Added Tax Registration
No.
24220601590V
Import Export Code 5210003132
Nature of Business
Major Markets Indian Subcontinent
Company USP
Quality Measures/Testing
Facilities
Yes
Packaging/Payment and Shipment Details
Customized Packaging Yes
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They also have a retail shop one is at bhagal and second at A.K road
1) Dhanhar house,
Bhajiwadi Pole,
Bhagal Char Rasta,
Surat – 395003
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2) Survey No. 167,
Ashwini Kumar Road,
Nr,Shamshan Bhumi,
Fulpada, Surat,
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5. Swot analysis
Strength:-
Company has immense of strength to compete with its competitors. Company has a
control over the personnel department the base of the finally strong. DHANHAR EXIM
PVT. LTD produces masala with best quality and cheaper price which is one of the USP
(Unique Selling Proposition) of the company.
Owing to his timely delivery, quality products and client centric approach, they have
attained commendable credibility in the market. they follow ethical and transparent
business policies to gain the confidence of our clients. Some of the pertinent factors that
set us apart from our competitors are as follows:
A state-of-the-art infrastructure
Well coordinated team
Economical prices
On-time delivery
Weakness:-
I have noticed one of the significant cons of the company and that is a disability to
produce and deliver the ordered goods on time. And collection policy is very libral
Opportunity:-
Company have one of the great area as to cover the market share in this respective sector
by increasing its attention towards cost & by expanding their business in other states of
Indian market and by going globally like U.K, U.S.A rather than just focusing on Gujarat.
Threats:-
Company has the biggest threat to compete with the other giant players which are much
effective in production and their quality world wide. A part from this another common
threat would be regulation from the government towards this company in future by hiking
the raw materials price and all.
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Chapter 2 . MARKETING DEPARTMENT
Structure of Marketing department
Products of the Company
Packaging & Labeling
Price of Products (Pricing Policies)
Organization’s buying process
Product life cycle (PLS) & Marketing Strategies
Channels of distribution
Marketing / Sales dept. at a glance
Promotional Activities
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1. Structure of Marketing Department
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Head of Marketing DepartmentHitesh bhai
Head of Marketing DepartmentHitesh bhai
PeonPeon
ClerkClerk
AgentAgent
2. Products of the Company :
We specialize in processing and supplying of a wide variety of Indian Spices. Our spices
are processed using quality ingredients that are sourced from cultivators and retailers and
therefore is appreciated for its taste and aroma. With such a mesmerizing range of spices,
we cater to the requirements of hotels, restaurants and homes. Our range includes the
following:
Salient Features:
Rich taste
Aroma
No preservatives
Unadulterated
Owing to the features furnished above, our products have gained recognition in the
market.
There are many masala product of DHANHAR EXIM PVT. LTD Company. Which are
below here.
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So, there are lots of item productions in the DHANAHAR MASALA, which are daily use in homes and
hotels.
3. Packaging & Labeling: -
Meaning of Packaging:-
Packaging means, “The wrapping of goods before they are transported or stored or
delivered to a consumer.”
We can define packaging as: “all the activities of designing and producing the container
is called the package”
The packaging has three levels, they are following:-
A. Primary package
B. Secondary package
C. Shipping package
Packaging is also kept pace with our products and the market, conforming to
International Standards and featuring diverse packing methods to match client
requirements
Packing is not available in kg with double polypropylene in-liner in trucks. It is also
available 10000 kg cardboard boxes on wooden pallets. Trucks are also available for
5000 kg & 10000 kg.
We have a special inspection team, which ensures the quality of packing before the
material is dispatched from the works
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Primary package
This is the primary packaging of the “Garam Masala” in the DHANHAR EXIM PVT.
LTD Company. So, this is the first step of the packaging of the masala. All types masala
packaging like this type but this is the example only “Garam Masala’s” packaging.
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Secondary package
This is the secondary packaging of the “Garam Masala” in the DHANHAR EXIM PVT.
LTD. So, this is the second step of the packaging of the masala. This is the important step
of the packaging.
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Shipping package
This is the last and final means
shipping packaging of the “Garam
Masala” in the DHANHAR EXIM
PVT. LTD. It is the very important
packaging of the masala because
when it’s over then production
supply in to the market and use
consumer and other.
So, the packaging of a
consumer product is an important
part of the marketing. A good
number of companies adopt square
packages in place of round packages which save space. There are many factors to be
considered while designing a package.
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DHANHAR EXIM PVT. LTD used kinds of the material for the packaging below
here;
1. Card Board Contriver
2. Plastic Contriver
3. Plastic Bag
4. Non-own Bag
5. Pouches
6. Paper Contriver
7. Clothes etc.
Kinds packaging of the DHANHAR EXIM PVT. LTD is below here;
1. Consumer Packaging
2. Family Packaging
3. Multiple Packaging
So, there are different packaging produce by DHANHAR EXIM PVT. LTD for the
customer.Packaging size of the DHANHAR EXIM PVT. LTD is 1 Kg., 5 Kg., 15 Kg.
and 40 Kg.
Labeling
Meaning of Labeling:-
“Label is a part of product, which carries verbal information about the product or the
seller. It may be a part of a package, or it may be a tag attached directly to the product.”
Label may be small slip or a printed statement.
DHANHAR EXIM PVT. LTD uses three types of label, which is following here;
1. A Brand Label
2. A Grade Label
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3. A Descriptive Label
Label gives following information in any product in the production. (DHANHAR EXIM
PVT. LTD)
1. Brand name
2. Picture of the Product
3. Address of the producer
4. Gross and Net quantity of the content
5. Ingredients in the product
6. Direction for the use
7. Precautionary measures
8. Nature of the product
9. Date of packaging and expiry
10. Retail price
Labeling photo’s of the DHANHAR EXIM PVT. LTD’s product:-
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4. Price of Products (Pricing Policies): -
Meaning of Price:-
It includes price, trade discount, cash discount, credit terms, and collection policy. The
price is determined normally after considering production cost, distribution cost, quality,
rival’s price & government controls.
Pricing policy of Company
Price is the one element of the market mix that produces revenue. The other elements
produce costs. Price is one of the most important factors that affect demand, growth of
company, market share, competitors, supplier etc. so we can say that the price is decide
by considering this all factors. Price may be suitable to product and market.
How to deciding the price?
DHANHAR EXIM Pvt. Ltd. has taken a certain steps to fix up the price of its different
product.
1. Selecting the pricing objectives
2. Determination of demand for product
3. Estimating the costs of production
4. Analyzing competitors’ costs, prices and offers
5. Selecting a pricing method
6. Selecting the final price
Responding to the competitors price changes
The company may react the changes in competitors’ price changes in following way:
1. Maintain price
2. Maintain price and add value
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3. Reduce price
4. Increase price and improve quality
5. Launch a low-price fighter line
Starting Price of the DHANHAR EXIM PVT. LTD’s Rs. 1, 2, 5, 50, 100, 200 and 500
up.
Price list of the DHANHAR EXIM PVT. LTD for the different Masala’s item in the
market to customer. (100 K.g.)
Price ListAs on 2009
PRODUCT PKG. M.R.P. PRODUCT PKG M.R.P. PRODUCT PKG M.R.P.
RAJWADIGARAMMASALA
25.g 5.00 PAVBHAJIMASALA
15.g 5.00 CHICKEN
MASALA
15.g 5.0050.g 12.00 50.g 22.00 50.g 20.00
100.g 23.00 100.g 40.00 100.g 38.00200.g 46.00 200.g
jar75.00 200.gJar 74.00
500.g 110.00 500.g jar
155.00 500.gJar 150.00
AGMARKHING
50.g 17.50 MUTTONMASALA
15.g 5.00100.g 34.00 TEA
MASALA15.g 50.g 50.g 20.00
200.g 67.00 50.g 100.g 100.g 38.00500.g 165.00 100.g 200.g
jar200.gjar 74.00
SUPERGARAMMASALA
15.g 5.00 200.g jar
500.g Jar
500.gjar 150.00
50.g 8.00 500.g Jar
175.00 FISH MASALA
50.g 20.00
100.g 15.00 100.g 38.00200.g 29.00 PUN.
GREVIMASALA
15.g 5.00 200.gjar 74.00500.g 70.00 50.g 18.00 500.gjar 150.00
NO.300HING
50.g 12.00 100.g 35.00 GUNDAKERI MASALA
200.g 29.00100.g 18.00 200.g 68.00 500.g 70.00200.g 34.00 500.g 130.00 AACHAR
MASALA100.g 15.00
500.g 83.00 CHHOLECHANAMASALA
15.g 5.00 200.g 29.001.kg 155.00 50.g 18.00 500.g 70.00
SUPER HING(DABBI)
50.g 17.00 100.g 35.00 GOL-KERIMASALA
200.g 34.00100.g 33.00 200.g 68.00 500.g 80.00
DELUX HING(DABBI)
50.g 35.00 500.g 130.00 LIMBU-SODA 50.g 7.00100.g 65.00 IDLE
SABHARMASALA
15.g 5.00 500.g 65.00KASHMIRI CHILLI POWDER
100.g 27.00 50.g 18.00 CHEVDAMASALA 50.g 7.00200.g 50.00 100.g 35.00 CHHAS MASALA 50.g 8.00500.g 120.00 200.g 68.00 CHHAS MASALA 500.g 75.00
CHILLIPOWDER
FINECLASSIC
50.g 7.50 500.g 130.00 TEA MASALA 50.g1.kg
18.00
100.g 14.00 DALSHAKMASALA 70.00200.g 27.00 KICKEN
KINGMASALA
15.g 5.00 SURTI MASALA 1.kg 105.00500.g 65.00 50.g 17.00 SP.G.MASALA 1.kg 140.001.kg 125.00 100.g 33.00 DELUX MASALA 500.g 140.005.kg 525.00 200.g 65.00 MARI POWDER 500.g 110.005.kg 600.00 500.g 135.00 SP.TEA MASALA 1.kg 180.00
TURMERICPOWDER
50.g 7.50 JINGER POWDER 1.kg 180.00100.g 14.00 CHAT 15.g 5.00 JIRU POWDER 1.kg 210.00
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Classic
MASALA200.g 27.00 50.g 13.00 LILOMACROHING 1.kg 300.00500.g 65.00 100.g 24.00 KALOMAVROHIN 1.kg 270.001.kg 125.00 200.g 45.00 LALMACROHING 1.kg 225.005.kg 600.00 500.g 110.00 MILK MASALA 20.g 30.00
CORIANDERPOWDER
50.g 7.00 50.g 70.00100.g 12.50 PANIPURI
MASALA15.g 5.00 100.g 130.00
200.g 24.00 50.g 13.00 RAJGARA LOT 100.g 9.00500.g 57.00 100.g 24.00 200.g 17.001.kg 105.00 200.g 45.00 500.g 41.00
CORINDERCUMINPOWDER
50.g 8.00 500.g 110.00 SHINGODA LOT 100.g 13.00100.g 15.00 BIRIYANI
MASALA15.g 5.00 1.kg 130.00
200.g 28.00 50.g 17.00 ROCK SALT 40.g 2.00500.g 65.00 100.g 33.00 100.g 5.00
DHANHAR EXIM PVT. LTD produces many other masala items to small basis. So, its
price is not given here.
5. Organization’s buying process: -
The Dhanhar Exim Pvt. Ltd. Company has major business in industry. It get a raw-
material from the other Company or processing units like farmacitical unit, printing unit
and others. The order placing for the raw material:
1. Problem reorganization
2. General need specification
3. Product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order routine specification
8. Performance review
Where’s comes Row Material?
Red chilly powder from Karnataka
Hing from Afghanistan
Salt from Pakistan
Plastic package from Bombay
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6. Product life cycle (PLS) & Marketing Strategies
Meaning of Product Life Cycle:-
As every being has life, a product has its life. Industrial goods may have a longer life than
consumer goods. Products, like human beings, have length of life for making sales and
earning profit.
The product life cycle is generally termed as product market life cycle, because it is
related to particular market. For instance, an old product in the market of Bombay may
have a life in a village. The product life cycle may be short for same products and long
for some other products. The period may differ form product to product. But the product
passes through the stages, collectively known as product life cycle.
Chart of the product life cycle in DHANHAR EXIM PVT. LTD:-
Sales and Profit
Introduction Growth Maturity
Total sales
Total Profit curve
Introduction: - Product is new, awareness in market, cost of marketing high and
profits are low.
Introduction is the first stage in the life of a product. This is an infant stage. The product
is a new one. The new product means. “A product that opens up an entirely new market,
replaces an exiting product, or significantly broadens the market for an exiting product.”
In this stage profit may below, because of heavy advertising and sales promotion in order
to stimulate the demand.
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Marketing Strategy: -
There are four types of the marketing strategy in Introduction but DHANHAR EXIM
PVT. LTD use only two types of the strategies;
1. Low Price and a Big Promotional Expenditures Budget: -
2. Low Price and a Small Promotional Expenditures Budget: -
`If the market is very wide, customers are unfamiliar with the product and sensitive to the
price and the market is also competitive this strategy is adopted for a quick entry in the
market.
If the customers are price sensitive and promotional expenditures are not likely to
increase the sales and the customers are familiar with the product strategy is adopt for
early and quick entry of the production in the market.
Growth:-
The product has given satisfaction to the first buyers. Sales increase rapidly and product
started generate profit.
Growth is the second stage in the life of a product. In this stage, the product satisfaction
the market and a product gains acceptance from the part of consumers and businessmen.
So, sales and profit increase. The success of firms depends upon the efficient
manufacturing and distributing system of the product. Previous buyers continue in their
purchase and new buyers appear.
Marketing Strategy: -
There are five types of the marketing strategy in Growth but DHANHAR EXIM PVT.
LTD use only four types of the strategies;
1. To increase the quality of the product or add new features to the product.
2. To start a campaign to search out new areas of market.
3. To intensity the advertisement and find out distribution for wide spread sales.
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4. In order to attract price marketing strategies the Company to decrease the price at
appropriate time.
Maturity: -
The product reaching its maturity and sales are good. But battle for market share is
about to begin.
At this stage, keen competition increases. Sales continue to increase for a while, but at
decreasing rate. Competitors go for mark - down price by increasing advertising deals.
Market expenses increase, even after mark – down price, which enable to face
competition. Thus, profit is thinned. Additional expenses are involved in production
modification and in the market. Overall marketing effectiveness becomes the key factor
in this stage.
Marketing Strategy: -
There are five types of the marketing strategy in Maturity but DHANHAR EXIM PVT.
LTD uses all the types of the strategies;
Efforts should be made to enter into new markets.
Steps should be taken to increase the utility of the product.
Product should be made familiar with other classes of customers.
Product should be improved very much.
Alterations should be made in the marketing mix to suit the changing conditions.
So, in the DHANHAR EXIM PVT. LTD’s every product moves through a life cycle,
having three phases, which are above the detail.
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7. Channels of distribution: -
Meaning of Channels of distribution: -
According to American Marketing Association, “A channel of distribution, or
marketing channel, is the structure of intra – company organization units and extra –
company agents and dealers, wholesale and retail through which a commodity, product or
service is marketed.”
Channel of distribution in DHANHAR EXIM PVT. LTD
Distribution channel
The producer and the final customer are part of every channel. We will use the number of
intermediate levels to designate the length of channel. There are many type of distribution
channel in Company. There are following:
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ManufacturerManufacturer
ConsumerConsumer
AgentAgent
WholesalerWholesaler
RetailerRetailer
1. Zero-level channel
2. One level channel
3. Two level channel
Dhanhar Exim Pvt. Ltd. use to zero level channels and one level channel in rare case
they use a two level channel company get an export order by e-mail and domestic market.
There is use one-level and two-channels.
In dhanhar exim pvt ltd they have 20/25 agents ingujarat for the distribution and they also
get the order web site thru.
8. Sales dept. at a glance: -
Main product of Masala essential commodities sales in open market by
Masala Agent & Super Stockiest as per daily marketable etc.
Masala factory reputed person perform as an Agent & Super Stockiest taken
a some deposits amount from Masala.
Masala deliver against only Demand draft & Cash. There is a some control
about releasing Masala quota for even month edusting by control
government department.
It means department of food supplest, government of India.
Masala factory export masala about as per instruction by control
government benefit to masala factory for exporting.
Price as per the domestic market depends upon Demand and Row – material
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9. Promotional Activities: -
Meaning of promotion: -
Promotion means a set of efforts made by the company for stimulating the demand for
its product or products without making any alteration in product mix, price and channels
of distribution.
Promotion is any communication activity whose main object is to move forward a
product, service or an idea in a channel of distribution. It is a set of efforts by marketer to
inform and persuade buyers to accept, resell, recommended or use the article, service or
idea which is being promoted. It is a form of communication with an additional element
of persuasion. The promotion activities always aim at stimulating demand by affecting
knowledge, preferences, attitudes and behaviors of the buyers.
Important of the promotion in the DHANHAR EXIM PVT. LTD: -
1. Increasing distance between producer and consumer
2. Need of commutation in expanded markets
3. Information to the market intermediaries
4. Stimulates Demand
5. Reviving of Demand
6. Makes other elements of marketing mix meaningful
Customer purched masala item above Rs 1000 up; So, DHANHAR EXIM PVT.
LTD gives one Shopping Beg .
Customer parched masala item above Rs 2000 up; So, DHANHAR EXIM PVT.
LTD gives one Traveling Beg .
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Promotional and advertising policies
DHANHAR EXIM PVT. LTD is a private limited company. Its customers are very
satisfied with the product and services that they are provided. And as we know that the
best advertising is done by the satisfied customer, most of the times the customers
themselves recommend products of DHANHAR EXIM PVT. LTD in their business
circle. No other advertising policy is followed by DHANHAR EXIM PVT. LTD as such
as they never felt the need of doing so till now.
But in case if there is any need of promotion, they make use of consumer-direct channels
to reach and deliver goods to the customers without using any middleman. These
channels include telephones and fax devices. Generally they receive orders in abundance,
but during slack time they call on their customers and ask them to place their orders.
They try to tempt them by saying that production of so-and-so masala is being carried out
and if they place their orders soon they will get prompt delivery or else they will have to
wait for 4 to 5 hours for delivery if they make it late.
E.g. During our summer training we found that during the first week of May
there were quite a few orders with the company. So they called up their customers
and asked them to place their orders by tempting them as they were very busy with
work and if they would place their orders now they will get their order delivered
soon.
This kind of direct marketing helps them to build continuous relationship each
customer and also make their offers and strategies less visible to their competitors.
Also they provide the booklet containing samples of their varieties of masala to
their customers.
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CHAPTER 3. HUMAN RESOURCE DEPARTMENT
Structure of HR department
Activities of Personnel / HR Department
Recruitment & Selection
Human Resource Planning
Training & Development
Promotion & Transfer
Performance Appraisal
Wages & Salary Structure
Employee Welfare
Human Resource Audit
Hierarchy Structure of Organization
Absenteeism Rate
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1. Structure of HR Department
Introduction
HRM is that branch of management which is responsible on a staff basis of concentrating
on those aspects of relationship of management to employee and with the development of
the individual and the group. The objective is to attain maximum individual development,
desirable working relationship between employers and employees; employee and
employee, and effective molding of human resources as contrasted with physical
resources.
In a Dhanhar Exim Pvt. Ltd., there is more importance given to the personnel because
all works are done by human beings if right person appoint then company get surly
success in its works. Company believes in getting well persons for its work.
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Head of HR DepartmentHitesh bhai
Assistant
Peon
1. Activities of Personnel / HR Department
Meaning of HR: -
“HRM is a management function concerned with hiring, motivation, & maintaining
people in an organization. The function & principle are applied to acquisitioning,
developing, maintaining, & remunerating employees in organization.”
Definition of HR: -
“HRM is a series of integrated decision that form the employment relationship; their
quality contributes to the ability of the employees to achieve their objectives.”
Activities of personnel department: -
HRM department helps managers to recruits, selection and train and develop members
for the company.
HRM is concern with the people’s dimension in organization. HRM refers to set of
programs function and activities designed and carry out in order to maximize. Both
employees as well as organization effectiveness.
The main activities of HRM department are to recruitment, selection, and training and
develop members for an organization.
The function, which are used by HRM department in the Dhanhar Exim Pvt.
Ltd. is below here,
(1) Managerial function
(2) Operative function
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1. Managerial function
(a) Planning: -
Planning is the process of deciding the goals & formulating policies & programmers to
achieve the goals. Planning involves forecasting & research. Planning helps to face
successfully the changes that are likely to take place in future. It preparing human
resource budget.
(b) Organizing: -
Organizing is the process of allocating tasks among the member of the group,
establishing authority – responsibility relationships among them & integrating their
activities towards the common objectives. Organizing is the framework through which
management directs controls & co – ordinates the efforts of people.
(c) Directing: -
Directing is the process of motivating, activating, leading & supervising people.
Directing includes all those activities by which a manager influences the action of
subordinates. Directing is the heart of the mgmt process. Directing also helps in building
sound individual & human relation in the organization.
(d) Controlling: -
It implies checking, verifying & regulating to ensure that everything occurs in conformity
with the plans adopted & the insuuctions issued. Such monitoring helps to minimize the
gap between desired result & actual performance.
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2. Operative function: -
There are five functions in the Operative function but DHANHAR EXIM PVT. LTD Pvt.
Ltd. uses only three functions in this Company, which are below here:
1. Procurement Function: -
Procurement function is concerned with securing & employing the right kind & proper
number of people required accomplishing the organizational objectives.
Dhanhar Exim Pvt. Ltd. consists of the only five activities in the procurement
function:
Job Analysis
Human Resource Planning
Recruitment
Selection
Placement
2. Development Function: -
Human Resource development is the process of improving the knowledge, skills,
aptitudes & values of employees so that they can perform the present & futures jobs more
effectively.
Dhanhar Exim Pvt. Ltd. consists of the only three activities in the development
function:
Performance Appraisal
Training
Executive Development
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3. Compensation Function:
Compensation function is refers to providing & fair remuneration to employees for
their contribution to the attainment of organizational objectives.
Dhanhar Exim Pvt. Ltd. consists of the only three activities in the compensation
function:
Job Evaluation
Wage & Salary Administration
Bonus
So, there are three types of function, which are use by Dhanhar Exim Pvt. Ltd. H.R.
department.
3.Recruitment & Selection
Meaning of Recruitment: -
Recruitment is understood as the process of searching for & obtaining applicants for
jobs, from among whom the right people can be selected. Recruitment involves attracting
& obtaining as many applications as possible from eligible job - seekers.
Organization have to recruit people with requisite skills, qualification & experience if
they have to service & flourish in a highly competitive event while doing so, they have to
be sensitive to economic, social, political, & legal factors within a country.
Definition of Recruitment: -
“Recruitment is the process of finding & attracting capable applicants for employment.
The process begins when new recruits are sought & ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected.”
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Process of the Recruitment in the Dhanhar Exim Pvt. Ltd.
There are four steps of the Recruitment process uses in the Dhanhar Exim Pvt. Ltd.,
which are below here;
1. Planning: -
Panning is the first step of the Recruitment process. Planning’s involves the translation of
likely job vacancies & information about the nature of the job. Types of application refer
to the type of people to be informed about job openings. These details are available
through job description & job specification.
2. Strategy Development: -
Once it is know how many & what type of recruits are required serious consideration
needs to given to;
“Buy” decision
Sources of recruitment
Sequencing the activities in the recruitment process
Planning
Strategy Development
Screening
Evaluation & Control
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“Buy” means hired skilled workers & professionals. It employees has the advantage in
the sense that the skilled professional & labour can be the work immediately & little
training may be needed.
3. Screening: -
Screening is to remove from the recruitment process, at an early stage, those applicants
who are visibly unqualified for the job. It screening, clear job specifications are
invaluable. Applicant qualification judged on the basis of their knowledge, skills, abilities
& interests required to do the job.
4. Evaluation & Control: -
Evaluation & Control is necessary as considerable costs are incurred in the recruitment
process. Statical information on the cost of advertisements, time taken for the process,
salaries for recruiters, time spent on preparing job description, job specifications,
Recruitment overheads & administrative expenses.
4. Selection
Meaning of selection: -
“Selection is the process of picking individuals (out of the pool of job applicants) with
requisite qualification & competence to fill jobs in the organization.”
The objective of selection process is to determine whether an applicant meets the
qualifications for a specific job & to choose the applicant who is most likely to perform
well in that job.
Definition of selection: -
“Selection is the process of differentiating between applicants in order to identify & hire
those with a greater likelihood of success in a job.”
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Selection is the most important process of the any Company . Selection is the based of
choose best workers and employment for the Company.
Process of the selection in the Dhanhar Exim Pvt. Ltd.
There are five types of the Recruitment process uses in the Dhanhar Exim Pvt. Ltd.,
which are below here:
Process of the selection: -
1. Preliminary Interview: -
Preliminary Interview is the fires step of the selection process in the Dhanhar Exim Pvt.
Ltd. Preliminary interview, on the other hand, helps reject misfits for reasons, which did
not appear in the application forms.
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Preliminary Interview
Selection Test
Employment Interview
Reference Check
Physical Examination
2. Selection Test: -
Generally, tests are used to determine the applicant ability, aptitude & personality.
Different types of tests in the DHANHAR EXIM PVT. LTD Pvt. Ltd., which are below
here;
Ability Test
Personality Test (Tat Test & Cpi Test)
3. Employment Interview: -
An interview test is conducted at the beginning & at the end of the selection process. The
emphasis here is on the letter. Different types of interviews in the DHANHAR EXIM
PVT. LTD Pvt. Ltd., which are below here;
One-to-One-Interview
Sequential Interview
Personnel Interview
4. Reference Checks: -
Reference Checks is the most important process of the selection. Many employers request
name, addresses & telephone numbers of references for purpose of verifying information
& perhaps, gaining additional background information on an applicant.
5. Physical Examination: -
Last and Final process of the selection is the Physical fitness test in the Dhanhar Exim
Pvt. Ltd. The result of the medical fitness test is recorded in a statement preserved in the
personnel records.
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4. Human Resource Planning
Meaning of HRP: -
HRP is the process of forecasting a firm’s future demand for supply of the right type of
people in the right number. HRP is also known as ‘manpower planning’, ‘personnel
planning’ or ‘employment planning.’
Definition of HRP: -
“HRP includes the estimation of how many qualified people are necessary to carry out
the assigned activities, how many people will be available, & what, if anything, must be
done to ensure that personnel demand at the appropriate point in the future.”
HRP translates the orgn’s objectives & plans into the number of workers needed to meet
those objectives.
Time duration of HRP in the Dhanhar Exim Pvt. Ltd.
Short Term Plan : 1 year
Process of the HRP in the Dhanhar Exim Pvt. Ltd.
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Organization Objectives & Policies
HR Needs & Supply Forecasting
HR Programming
Evaluation & Control
Human resource planning process is important to making effective planning for personnel. The
steps taken by Dhanhar Exim Pvt. Ltd. is describing below:
A. First they analysis the organizational plan it means see deeply future plan of the various
department or organization. Select the Organization’s objectives & policies and done
work in HRP by employment.
B. Then after they forecast demand of manpower required in future they think which type of
manpower demand is required is arise & which department and how much personnel is
required .then they find sources of manpower. And they also find how HR needs and
supply forecast.
C. Once the demand is decided then they forecast the supply of the manpower it means best
sources is available to recruit the employee. Then they match the demand and supply of
manpower.
D. Evaluation & Control is the final phase in the HRP process. The HR plan should include
budgets, targets & standards. It should also clarify responsibilities implementation &
Control which will enable achievements to be monitored against the plan.
Surplus: Reduced hours
Shortages: Recruitment
In this planning following points they take into consideration for its HR planning:
When HR needs arises.
Which type of manpower is required in future?
Source of required manpower available for the organization in future.
Is any diversification is done in the organization in short term OR in long term.
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5. Training & Development: -
Meaning of Training: -
“Training is the process of increasing the knowledge and skills for doing a particular job.
It is an organized procedure by which people learn knowledge and skill for a definite
purpose. Training is aimed at improving the behavior and performance of a person.”
Meaning of Development: -
“Development is the process of developing the knowledge and skills in employees for
doing a particular job. Development involves preparing the individual for a future job and
growth of individual in all respects.”
Why training needs in the Dhanhar Exim Pvt. Ltd.?
There are three rezones to needs training in the Dhanhar Exim Pvt. Ltd., which are below
here;
Job Requirements
Technological Changes
Internal Mobility
Training method:-
There are two methods for training but Dhanhar exim Pvt. Ltd. use,
On the job training method:
Job rotation
Job coaching
Job instruction
Training through step by step
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6. Performance Appraisal:-
Meaning of Performance Appraisal: -
“Performance Appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. Performance Appraisal and Merit
rating are used synonymously.”
Definition of Performance Appraisal: -
According to flippo, “Performance Appraisal is the systematic, periodic and an impartial
rating of an employee’s excellence in matters pertaining to his/her present job and
potential for a better job.” It is the process of obtaining, analyzing and recording
information about the relative worth of an employee.
Advantages of Performance Appraisal of company’s point of view are as
follows.
To effect promotion based on components based on competence and
performance.
To confirm the services of probationary employee upon the completion of the
probation period satisfactory.
To check training and development needs of employee. To decide upon the pay-
raise where regular pay scale have not fixed.
To decide upon the pay-raise where regular pay scale have not fixed.
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To let the employee know where they stand as far as there performance is
concerned and to help them with constrictive criticism and guidance for
the purpose of there development.
To improve communication
Performance Appraisal can used to determine whether human resource program
such as selection, training and transfers have been effective or not.
Essential of Performance Appraisal system in the Dhanhar Exim Pvt. Ltd.
are below here: -
Clear objectives.
Standardization training
Job relatedness
Feedback and participation
Individual differences
Review and appeal
In this way Performance Appraisal system is very useful to company.
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Process of the Performance Appraisal in the Dhanhar Exim Pvt. Ltd.
There are five types of the Recruitment process uses in the Dhanhar Exim Pvt. Ltd.,
which are below here;
Safety Standard
Company follows safety ruse restricts. The company is constructed there plant in such a
way. That in a case of emergency the worker can be secured more then one way out are
provide assembly point is in case of fire safety virulent can be implemented urgently as
wall as general returns, company provided for the worker hand glows, gumshoes, helmets
,masks, to prevent from the masala reactive . Around the bloke more in emergency the
firebriged and disaster management center telephone number are kept in such a way that
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Establishing Performance StandardsEstablishing Performance Standards
Communicating the StandardsCommunicating the Standards
Measuring PerformanceMeasuring Performance
Comparing the Actual with the StandardsComparing the Actual with the Standards
Discussing the AppraisalDiscussing the Appraisal
Taking Corrective ActionsTaking Corrective Actions
can be contact errantly without loosing time first-aid box are kept in each section of the
plan.
Record and System
As per the rules and regulation company has to maintain all the rerecord to person
working in the factory. More ever company has to keep the record has per government
reels and factory act. In all necessary firms as wall as regarding Safety Company has
get certain machine cheeked though government approval agency time to time related
to safety rules and maintain its records.
Factory & Office Work of Time
The employee must have to come timely and employee has to follow the rules made
by the company and government. Employee not go out side the plant or site without
the permission of his superior or authority. In the organization this rules touch every
person who work in the firm.
Time keeping:
Shift timing
Dhanhar Exim Pvt. Ltd. has only one shift that is day shift and time is: 9 a.m. to 8 p.m.
Break:
12.30 to 1.30 p.m. lunch break
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7. Wages & Salary Structure: -
About Wages & Salary: -
Wages represent hourly rates of pay & Salary means monthly rate of pay, irrespective of
the number of hours put in by the employee. Wages and Salaries are subject to annual
profit. They differ form employee & depend upon the job – nature, seniority & merit.
Wages & Salary, both are part of Components of Remuneration.
There are three policies of the Wages, Which are below here;
Minimum Wage
Fair Wage
Living Wage
A minimum wage should provide for workers family, for his efficiency, for the
education of his family, their medical cure. Minimum Wage 3000 in the Dhanhar Exim
Pvt. Ltd.
A fair wage should provide for productivity of labour, place of Company in the economy
of a country, prevailing rates of wages. Fair Wage 4000 in the Dhanhar Exim Pvt. Ltd.
A living wage should provide for forms the basis for fixing minimum wage, capacity of
the Company to pay. Living Wage 6000 in the Dhanhar Exim Pvt. Ltd.
There are two methods of the Wage Payment, which are uses in Dhanhar
Exim Pvt. Ltd.
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Methods Depended
Time Wage Depended on the time
Piece Wage Depended on the piece (unit)
Wages and Salaries structure in the Dhanhar Exim Pvt. Ltd.;
Company’s wages and salaries are paid by incentives way and also called
payment by result. Incentives are depend open the productivity of the employee.
Productivity of workers Salaries
1000 to 2000 units 3000
2000 to 3000 units 4000
3000 to 3500 units 4500
3500 to 4000 units 5000
4000 to 5000 units 6000
This is a structure of paying salaries in the Dhanhar Exim Pvt. Ltd.
Dhanhar Exim Pvt. Ltd. also provide fringe benefit for such top employee these
benefit are as follows .
Medical care
Hospitalization
Accident relief
Health and group insurance
Canteen
Uniform
Recreation
8. Employee Welfare: -
Meaning of Employee Welfare: -
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According to the Arthur James Todd, “Employee Welfare means anything done for the
comfort and improvement, intellectual or social of the employees over and above the
wages paid, which is not a necessity of the industry.”
Welfare Activities
Welfare activities means those activities which are do always in favor of
employees. It means the special extra facilities given to employees from company.
As it is DHANHAR EXIM PVT. LTD Pvt. Ltd. provides such kind of facilities to
employees which are as follow,
Provide good condition of equipment and also provide better
environment for work
Company provides individual changing room, store room, rest room etc.
First aid box provided to all department.
Safety devices like helmet, glows, safety shoot are provided by Dhanhar
Exim Pvt. Ltd. in production area units
Traveling allowance and dearness allowances are provided to every
employees and executive.
There are two type of welfare activates of the company
1. Intramural
2. Extra – mural
1. Intra mural : - This services are provided within the establishment These
include washing & bathing facilities, rest room, uniform,
medical aid , recreation facilities.
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2. Extra mural: - These services are provided outside the establishment. these
include housing accommodation , transport , maturity benefits ,
sport’s field, holiday home, etc.
DHANHAR EXIM PVT. LTD use only Intramural Welfare Services.
9. Human Resource Audit: -
About Human Resource Audit: -
Audit is an important test of managerial control of company’s point of view. It
involves examination and verification of accounts and records. Human recourse audit
implies critical examination and evaluation of polices, programs and procedure in
the area of HR audit of the company’s point of view .
Advantages of HR audit in company’s point of view.
To review the system of acquiring , developing , allocating, and
utilizing human resource in the organization .
To evaluate the extent to which line managers have implemented the
polices and programs .
To identify shortcoming in the managers in the management of human
resources.
To evaluate the human recourse staff.
Company’s scopes of HR audit are as follows;
1. Auditing human recourse polices.
policy of the company
policy formulation
communication policy
consistency policy
2. Auditing Human Recourse Programs.
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3. Audit of Human Recourse.
4. Company’s Audit Report.
10. Hierarchy Structure of Organization:
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11. Absenteeism Rate:-
HR Department Head
HR Department Head
Personal managerPersonal manager Personal officerPersonal officer
Supervisor Supervisor
WorkerWorker
Clerk Clerk
PeonPeon
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The absenteeism rate of DHANHAR EXIM PVT. LTD Pvt. Ltd. has decreased since last
two years as seen form the records maintained by the Company. The absenteeism rate in
the year 2007-2008 was around 7% which has now decreased to 4% in the year 2009-
2010. This is due to the change in the interest and avearness of the employees working in
the company and development of the wage rates which is linking.
Example: - The wages are on the basis of their work or their attendance. If any
person remains absent continuously for more than eight days without informing the
company that person would be removed from the job.
Why absenteeism rate is decreased?
Absenteeism Rate is decreased compared to 2007-2008 and 2009-2010 because
DHANHAR EXIM PVT. LTD Pvt. Ltd. gives extra benefits to the workers. Like bonus,
gift and etc. So, Absenteeism Rate is decreased about 3%.
CHAPTER 4. PRODUTION DEPARTMENT
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Structure of production department
Activities of Production Department
Process Layout / Product Layout
Technology used
Machinery Operations Stores
Plant Location, Controls of R.M. in Process & finished goods
Quality Control
1. Structure of Production Department
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Introduction: -
Meaning of Production: -
Head of Production
DepartmentJignesh bhai
Production Manager
Assistant
Workers
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“Production is the process of converting the raw material and for the other input the
product for further production of the finished goods or services so that utility of input is
created or enhanced and the need of customer are satisfied.”
Example: - Consumer goods, Industrial goods, Services of transport, Medical
treatment, Education, Insurance, Banking etc.
Definition of Management: -
“Management means creating and maintaining an environment in which individual
working together in group willingly contribute there best to achieve the predetermined
goal and objective timely though the effective utilization of sources such as money,
material, technology etc.”
Production Management: -
“Production Management means creating and maintaining environment in which
individual working together in group willingly contribute their best to produce to satisfy
the goods and services by optimum utilization of raw material and other input so as to
timely satisfy the need of customers”
Important of Production Management: -
1. It helps to satisfy the need of customer timely:-
By maintaining the quality delivery schedule and the require rate of
production.
By providing the flexibility of production to give different form of product
and verity of products.
By providing reasonable low price though increase in productivity.
2. It increase the productivity: -
By utilizing the resources efficiently.
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By reducing the wastage of raw material, man hour, machine hour, fuel
etc.
By minimum inventory cost, set up cost, ordering cost etc.
3. It gives the better satisfaction to the employee: -
By providing job satisfaction though training, motivation, good
working condition.
By providing them incentive like with higher productivity.
4. It satisfies the investors by increasing the return on investment (ROI) and capital
appreciation.
5. It satisfies the supplier of an input and ancillaries. By increasing their turn over.
6. It satisfies the community.
By providing pollution free and healthy environment.
By welfare and development activity in the community.
Infrastructure
A well equipped infrastructure allows an organization to gain a decisive edge over its
counterparts. Considering this fact, we have invested a huge capital for the establishment
of the same. Our infrastructure comprises different departments such as warehousing &
packaging unit, quality control management system and processing department that help
in smooth functioning of an organization. Each department is headed by an expert, who
efficiently manages the operations its department. Moreover, we have installed advanced
machines and equipment to maintain the swift rate of production.
2. Activities of Production Department: -
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Production Management includes all the activities right from the procuring of row
materials and other inputs to their conversion into marketing output.
There are various activities of the production department in the Dhanhar Exim Pvt.
Ltd., which are below here in short.
1. Product Selection and Design
2. Process Selection and Planning
3. Location of Plant and Facilities
4. Material Handling
5. Capacity of Planning
6. Production Planning and Control
7. Purchasing and Inventory Control
8. Quality Control
9. Maintenance and Replacement of Machinery
10. Cost Reduction and Control
11. Incentives and Extra Benefits
So, there are different eleven types of activities of the production department in the
Dhanhar Exim Pvt. Ltd.
3. process layout
Location of plant
Plant location is mainly selection on these areas where the business should well establish
for maximum utilize of economy and effectiveness. It is an important decision in long
term.
Location of plant is most important factor in a private sector. There are many factors are
affected e.g. if the place was out side the city then they are free from paying octroi for
their product, various taxes, labour transmission facilities, living home to the labour or
employee like houses, cottages etc., for the raw material storage facility to the certain
extent to run production smoothly. When plant or site is located in near or in the city they
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have no expense to rent for the employee or labour houses, available good infrastructure
in compare to the far from the city area, less transportation cost, easy distribution of
goods in less time
Dhanhar Exim Pvt. Ltd. plant is located at no far from the city and not near to the city.
It is located in industrial zone of fulpada in this area they get benefits from the
government and electricity, water, roads, communication channels.
Dhanhar Exim Pvt. Ltd. Chooses this area because there are available enough raw
material with proper quality & quantity. Easy distribution of their product & profitable to
the Company. They not thinking for the changing the site. They want to buy or take on
the lease new site near the old plant.
The population is increasing day by day and residential area will come near to the
industrial area so that DHANHAR EXIM PVT. LTD Pvt. Ltd. More concentrate on
environment not harmful to their citizen. The company will think to establish new plant
far from to the residential area.
Production department
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Process layout
Process layout plant depend in 10 types of production department and the Process
layout /are as follows.
Flow chart of manufacturing Masala
(1) Plastics/ Billets:
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Plastic/billetArrival
Testing inLaboratory
Storage &Dispatch
CuttingTo length
CoolingRoom
INSPECTION
Charged in re-useFurnace capacity 1MT/hr
Sent backTo supplier
Intermediate Work
Plastic / Billets is a one types of row-materials. The plastic / billets they purchases in
different places for the different item and he is delivery to the other places and cities,
which are uses masala. All the industries have too very big stock in plastic / billets.
(2) Reheating Furnace:
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Reheating furnace means return to plastics and billets furnace. The company foremen or
worker supplied for the plastics and billets to the furnace. The cranes carry to the plastics
and billets and put the conveyer belt so conveyer belt pick up the plastics and billets goes
to the reheating furnace. So plastics and billets go to the furnace after the process plastics
and billets go to the roughing mill.
(3) Intermediate Work:
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Intermediate mill always work in roughing mill work finished. Actually
intermediate mill means the joint for the plastics and billets. Intermediate
mill the workers hand a one masala packaging and he was push the out of
roughing mill stock and supplied in intermediate mill and the intermediate
mill joint the packaging and fixed cuts. So intermediate mill means a one
types of joint the packaging. The intermediate mill in a very high degree
temperature. So, worker very carefully works in intermediate mill.
(4) Finishing Work
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Finishing mill means the finished the Masala Packaging. The Company always very
carefully to the finished for the packaging. The Company always demands in the market
and he was not rough product for the customer. So, Company always very carefully for
the finishing mill and the different product for other Masala’s companies. Finishing mill
always in the very carefully work for the masala packaging.
(5) Cooling Room
Cooling bed means cool the Masala Packages. Some time the package produce in very
large number so Company cooling room also facilities provide for the factory. Cooling
room work only the cool the packages. The cooling room very long and very big many
workers work on the cooling room. The workers pick up the masala packages and put
the cooling room.
(6) Inspection
Inspection means a one types of checking for the packages. The Company checks the
packages a briefly. The manager is only view to the checking of packages. The Industries
one manager appointment to the check of packages. The manager is checks the packages
after goes to the packages in the storage & dispatch. Inspection plan is fully
automatically. The foremen provide to the machinery and check the packages and the
machinery provide the document about in packages how many unpolluted. These
facilities also provide the companies for his customers.
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Inspection report
No.
Bought of Purchase order no.
Material receipt report no.
Date
Item
no.
Code
no.
particular Quantity
on order
Quantity
received
period rejected Remarks
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(7) Storage (Warehousing) & Dispatch
Storage & dispatch means the store the Masala’s packages and transporting to the
packages. Storage means the companies store the packages and the customer gives the
order for the different item of the masala. So, Dhanhar Exim Pvt. Ltd. calls to the
transporter and gives the dispatch for the packages. Any times the Company gives self
delivery for the product. So the very big place for the storage & dispatch and the
Company also selected worker for the storage & dispatch.
We understand the value of a warehouse in an organization like ours and therefore we
have established a capacious warehouse. Our warehouse is managed an expert who
manages the working of the same. It is well ventilated and properly segregated for the
easy identification of the products.
Apart from this, we have packaging professionals who make use of tamper proof bags
and corrugated boxes to maintain the quality of the products during the transit. Our team
of logistics makes sure to deliver the spices at the clients' end within the committed span
of time.
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4. Technology used: -
Technology is play very important role of the any Company. Dhanhar Exim Masala Pvt.
Ltd. used latest technology in the factory to produce the different types of Masala and
display in the market of whole Gujarat and its selling & result is nice for the Dhanhar
Exim Pvt. Ltd. So, DHANHAR EXIM PVT. LTD Pvt. Ltd. used “INPACK
FABRICATIONS PVT. LTD.” technology. DHANHAR EXIM PVT. LTD used many
other machines and technology which are below here;
DHANHAR EXIM PVT. LTD used;
1. High Speed Servo Driven Auger Filler (With Rexroth Bosch System)
2. High Speed Volumetric Viscous Filler to pack oils
3. Servo Driven Auger Filler (With Siemens System)
4. Volumetric Cup Filling ( to pack free flowing Granules)
So, Dhanhar Exim Pvt. Ltd. uses these four types’ machines of the “INPACK
FABRICATIONS PVT. LTD.”
Company uses modern machines and techniques to maximize their production and to
minimize the waste. Company uses only Indian Machines, no China Machines.
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5. Plant Location, Controls of R.M. in Process & finished goods: -
Location of plant
Plant location is mainly selection on these areas where the business should well establish
for maximum utilize of economy and effectiveness. It is an important decision in long
term.
Location of plant is most important factor in a private sector. There are many factors are
affected e.g. if the place was out side the city then they are free from paying octroi for
their product, various taxes, labour transmission facilities, living home to the labour or
employee like houses, cottages etc., for the raw material storage facility to the certain
extent to run production smoothly. When plant or site is located in near or in the city they
have no expense to rent for the employee or labour houses, available good infrastructure
in compare to the far from the city area, less transportation cost, easy distribution of
goods in less time.
Dhanhar Exim Pvt. Ltd. plant is located at no far from the city and not near to the city. It
is located in industrial zone of Surat at A.K. Road. In this area they get benefits from the
government and electricity, water, roads, communication channels. Dhanhar Exim Pvt.
Ltd. chooses this area because there are available enough raw material with proper
quality & quantity. Easy distribution of their product & profitable to the Company. They
not thinking for the changing the site. They want to buy or take on the lease new site near
the old plant.
The population is increasing day by day and residential area will come near to the
industrial area so that Company more concentrate o environment not harmful to the their
citizen. Dhanhar Exim Pvt. Ltd. will think to establish new plant far from to the
residential area.
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Raw Material
Dhanhar Exim Pvt. Ltd. uses the raw material to make a product like Plastics/billets.
Every product has a different raw material. Dhanhar Exim Pvt. Ltd. Use raw material
given below:
1. Plastics /Billet
2. Different Masala’s Row - Material comes different Places
Procuring the raw material
The needs of raw material exist when Company receives orders from the customers. For
that Company makes contract or agreements with the supplier of raw material. Contract
may be duration for the one month or one year. Company purchases the raw material in
the local market.
According to the agreement duration of contract, price of raw material, quality of raw
material, and in some case quantity is also specifying, Party’s name, and supplier name is
mentioned in the contract.
Row -Materials are goods which have not yet been committed to production in a
manufacturing firm. They may consist of basic raw materials or finished components, in
many of the cases the finished goods of one Company becomes the raw materials of
another Company.
E.g.: - The finished goods of a Dhanhar Exim Pvt. Ltd. are the masala, which
becomes the raw material from different places for different masala.
1. All the plastics Row - Material comes from the Bombay
2. Rock Salt’s Row - Material comes from the Pakistan (Lahore)
3. Hing’s Row - Material comes from the Afghanistan (Iran)
So, Different types of Row -Material is uses in the Dhanhar Exim Pvt. Ltd. and it comes
to many far and different places.
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Finished Goods
After come raw materials for different type’s masala, then work in process to the end of
finished goods. Finished Goods are completed products awaiting sale. Finished Goods
are the final output of the production process in a manufacturing firm. The levels of the
three different kinds of inventories depend upon the nature of the business.
E.g.: - DHANHAR EXIM PVT. LTD will have high levels of all the three kinds’
inventory, while a retailer or wholesaler will have high level of inventories of
finished goods only.
Inventory Management
Definition of Inventory Management: -
“Inventory control means the decision of the firm as to the extent to which inventories
can be economically stored.”
Inventory management: -
Dhanhar Exim Pvt. Ltd. they are not able to engage large amount of money in stock. So,
Industries plant manager has to handle the inventory of raw material, semi-finished goods
etc. There is no such type of different department to manage the inventory. According to
the manger who handle the inventory, in early stage there were no speedy transportation
and communication so they have to consider the lead time for the raw material required
that’s why the company need to maintain inventory of raw material and finished or semi-
finished goods. Today there is a greatest change in the IT sector, transport facility etc. So,
there is less need to maintain inventory. Now the raw material is available in the same
place or near by place, in case raw material purchased from outside the other city then it
is available in one or two days. So, there are fewer burdens to bring the stocks.
Dhanhar Exim Pvt. Ltd. maintains stock for the safety purpose so production runs in a
smooth way. The stock keeps for the using it crisis time. So, productions not stop.
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Store Inward Receipt
M/s. Vehicle no. Date
GR. / RR. No. Date INDENT No.
Transporter
Challan No.
Sr.
No.
Description
of material
Unit Qty. as
per
challan
Short
quantity
Received
quantity
Rejected
quantity
Quantity
accepted
6. Quality Control
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About Quality: -
Quality refers to the sum of attributes or properties that describe a product. These are
generally expressed in terms of specific product characteristics such as length, width,
colour, etc. These characteristics must be quantitatively expressed in terms that can be
objectively measured or observed.
About Quality Control: -
Quality Control refers to those activities used to refer to a specific organization within the
Industrial enterprise which is assigned responsibility for many of the activities necessary
to achieve quality objectives.
Quality is the hallmark of all our endeavors, which has set us apart from our counterparts.
To ensure high quality in his range, they follow a set of quality assurance policies, which
incorporates stringent quality testing process of our range. They have employed a team of
quality controllers that keeps a tab on the entire process, starting from the procurement of
ingredients to the last stage of shipment. Their wide gamuts of Indian Spices are
rigorously tested on various parameters such as:
1. Purity
2. Taste
3. Aroma
4. Freshness
5. Shelf life
Methods of Quality Control, which are uses in the Dhanhar Exim Pvt. Ltd.
There are four method uses, which are
1. Inspection
2. Quality Circles
3. Total Quality Management (TQM)
4. Statistical Quality Control (SQC)
Most of use Inspection and Statistical Quality Control by Dhanhar Exim Pvt. Ltd. in
the Factory.
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Quality control
Customers of any Company first take care and try to know about the quality of the
product. It happens in this Company also.
The Company produces a product as per the customer requirement and the standard given
by the customer. For quality control company takes sample in each and every stage of
production and check the quality of given order. These samples send to the customers and
if they approve the sample then and only then the order being processed. Quality check in
the Industries own laboratory which is located in their plant. Laboratory is located in the
plant so it comfortable to test and transport the sample.
If customer reject the sample then second time process is begin with improvement and
with care of consider the quality and requirement of customer. Then it sends to the
customer again
In present time quality control has been one of the most important factor to boost the
product in the competitive market. Every stage quality checking, reaction testing
becomes an important factor. Just starting the batch from the first reaction time to time
testing is carried out in between the process quality control and check is containing
carried until the product comes out into the final form especially in dye stuff. Certain
quality parameters are important like solubility of materials, insoluble particles of
materials, isomers, so contained other foreign particles transparency of the material and
strength of the material.
Transport
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The Dhanhar Exim Pvt. Ltd. provides a transportation facility to its customer. For export
purpose company send goods to near by dock and then responsibility are shifted to the
buyer’s to carry out the goods to their place. Company sends goods by the truck, tempo,
max pick up and other transport agencies. Dhanhar Exim Pvt. Ltd. has its own vehicles to
transport the goods.
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CHAPTER 5.FINANCE DEPARTMENT
Budgeting & Planning
Taking Loans (Sources of funds)
Issuing Shares (if applicable)
Providing funds to Different Departments
Balance Sheet & Annual General Report
Working Capital, Cash, Inventories,Receivables etc.
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Introduction: -
A firm needs to manage its resources effectively and efficiently to achieve its objectives.
The managing of resources in an effective manner is possible only when the management
works out the future courses of action in advance and takes decisions in a professional
manner, utilizing the individual and group efforts in a co-ordinated and rational manner.
Financial Planning should estimated the resources required to carry out operations and
determine how far these resources can be generated internally by the firm itself and how
far they will have to be obtained externally.
Organization Structure of Finance Department
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Chairman
Directors
General Manager
Accountant
Cashier
Clerk
Accounting Policies
Method of accounting:
The company follows mercantile systems of accounting as mentioned in the
companies act, 1956.
Fixed assets:
All fixed assets are recorded at cost of acquisition including installation cost wherever
applicable excluding motivate amount.
Depreciation:
It is being provided according to the companies act 1956 considering written down value
method using single shift working in respect of plant and machinery. In respect of other
assets depreciation is provided according to rates prescribed in schedule IV of the
company’s act 1956 in case of addition during the year. Depreciation is provided of the
prorate basis.
Inventories:
Inventories are valued at the cost or net realizable value whichever is lower.
Income and expenses recognition:
Income and expenses are accounted for an accrual basis.
Miscellaneous expenditure:
Miscellaneous expenses are amortized over a period of 10 years.
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Capital structure during the year (Amount in Rs.Thousands)
Public issue --- Nil
Bonus issue --- Nil
Rights issue --- Nil
Private placement --- Nil
1. Budgeting & Planning: -
Definition of Capital Budgeting: -
Capital Budgeting may be defined as decision making process by which an organization
evaluates the major investment proposals keeping due consideration for the,
Amount needed for Investment
Amount available for Investment
Amount that can be acquired from different sources
The cost of raising funds
Future cash Inflows
Types of Capital Budgeting in the Dhanhar Exim Pvt. Ltd.;
1. Introduction of a New Product
2. Change in Method of Production
3. Replacement
4. Business Expansion
5. Substitution of Machinery for Labour
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Definition of Financial Planning: -
Financial Planning is primarily a statement estimating the amount of capital and
determining its composition. It includes. :
1. The determination of the form and proportionate amounts of securities.
2. Develop the best plan to obtain the required fund.
3. Analyse control points which need to be established.
4. Estimated the requirement of financial resources in time with its operating
programme.
5. Established control points which need to be established.
Advantages of Financial Planning in any Company;
Economical procurement and profitable use of funds
Elimination of Waste
To Maintain Effective Control
Modern business is very complex. Financial Planning helps management to avoid waste
which possible by maintaining close co-ordination between various functions of the firm.
Financial Planning provides broad guidelines for procurement, allocation and
disbursement of funds. Control can be exercised in an effective manner when actual are
compared against these guidelines.
In the Dhanhar Exim Pvt. Ltd. financial planning is very strong. Finance position level is
maintained for the future.
Factors affecting for the financial planning in the Dhanhar Exim Pvt. Ltd.;
Nature of business
Attitude of the Management
Alternative sources of finance
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Steps in Financial Planning, which are taken by the Dhanhar Exim Pvt. Ltd.;
Review and Analysis of past performance
Establishing objectives
Financing
Consequences of Financial Plans
2. Taking Loans (Sources of funds): -
DHANHAR EXIM PVT. LTD Pvt. Ltd. requires and uses Short Term Capital for
running the business. Short Term Capital to finance its working capital requirements.
Dhanhar Exim Pvt. Ltd. taking no loans by any Industrial bank.
Dhanhar Exim Pvt. Ltd. use only Retained Earnings in the business firm.
Depreciation charged and retained earnings represent the internal sources of finance
available to the Company. If the depreciation charges are used for replacing worn-out
equipment, retained earning growth the only internal sources for financing expansion and
growth. Industrial normally retain 30 per cen to 60 per cen of profit after tax for financing
growth.
Advantages of the Retained Earnings in the Dhanhar Exim Pvt. Ltd.
A. Retained Earnings are readily available internally. They do not require taking to
outsiders.
B. Retained Earnings effectively represent effect of additional equity in the firm.
C. There is no transfer of control when a firm relies on retained earnings.
D. The capital appreciation that arises as a sequel to retained earnings is subject to a
lower tax rate.
E. Reinvestment of profit may be convenient for many shareholders as it relieves
them to some extent of the problem of investing on their own.
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3. Providing funds to Different Departments: -
Dhanhar Exim Pvt. Ltd. providing funds to different departments in their budgeting
programme.
8% to 10% for marketing department
20% to 30% for capital budgeting
2.5% to 4% for employee welfare
50% to 55% for wages & salary
4. Issuing Shares: -
Dhanhar Exim Pvt. Ltd. has no Issuing Shares and no applicable shares.
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1. balance sheet & Annual General Report:-
Annual General Report & Balance Sheet of the DHANHAR EXIM PVT.
LTD for the year of 2010 – 2011
Trading Account as on the date 31/03/2011
(Account Year: - 2010 – 2011)
Particulars (Name of
Account)
Debit Credit
Sales of Goods (Retail) ----- 2,87,81,702
Closing Stock A/C ----- 28,45,211
Fire & General Ins. A/C ----- 22,48,738
Opening Stock A/C 12,44,697 -----
Sales Tax A/C 1,32,315 -----
Octroy A/C 2,21,058 -----
Electric Bill Exp. A/C 2,33,280 -----
Purchase of Goods (Retail) 2,08,98,501 -----
Purchase of Goods (tax) 43,01,891 -----
Gross Profit 68,44,209 -----
Grand Total of Trading
Account
3,38,75,951 3,38,75,948.21
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Profit & Loss Account as on date 31/03/2011
(Account Year: - 2010 – 2011)
Particulars (Name of Account) Expense Income
Gross Profit ----- 68,44,209
Bank Com. A/c 7,153 -----
Discount A/c 40,859 -----
Telephone Exp. A/c 11,519 -----
Petrol Exp. A/c 28,732 -----
Other Exp. A/c 7,904 -----
charity Exp. A/c 4,200 -----
Machinery Reading Exp. A/c 57,660 -----
Advertising Exp. A/c 665039 -----
Salary Exp. A/c 3,30,400 -----
Fire & General Ins. Exp. A/c 60,790 -----
Professional Tax 1,000 -----
Stationary Exp. A/c 4,817 -----
Mobile Phone Exp. A/c 23,499 -----
Cold Storage Rent 2,389 -----
Computer Programme Service Exp. 8,000 -----
Lava jam Exp. A/c 12,900 -----
other Exp. 3,534 -----
Carriage Outword Exp. 1,79,749 -----
Letter (Tar - Tapal) Exp. 18,428 -----
Packing Stock ----- 6,01,277
Hire Charges 44,291 -----
Depreciation Exp. 3,18,343 -----
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Legal Action Fee Exp. 42,382 -----
Website Exp. 26,636 -----
Machinery Parts Exp. 96,664 -----
Rent Exp. 1,42,800 -----
Bonus Exp. 27,500 -----
Salary Exp. (Staff) 2,49,000 -----
Interest Exp. 3,17,696 -----
Machinery Consultant fee 34,800 -----
Light man Exp. 34,800 -----
Purchase of Packing 31,68,016 -----
Net Profit & Loss A/C 14,73,986 -----
Grand Total of P & L Account 74,45,486 74,45,486
Balance sheet
It is statement of financial position of any economic unit disclosing as at a given
movement of time its assets at cost, or other indicated value, its liabilities and its
ownership equities. It shows current assets, current liabilities, fixed assets, investment,
differed charges, long-term liabilities, proprietors fund etc.
In brief it includes the figure in summery from of various assets held by the company and
also its liability towards outsiders including the owners at the end of last day of an
accounting year.
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Balance Sheet as on date 31/03/2011
(Account Year: - 2010 – 2011)
Particulars (Name of Account) Liabilities Assets
Partners/Prop. Capital 55,54,326 -----
Secured Loans 32,11,252 -----
Unsecured Loans 4,15,626 -----
Sundry Creditors (Suppliers) 61,95,516 -----
Other Liabilities
Sale tax A/C (Previous) 47,561 -----
Other Account 3,20,000 -----
Fixed Assets
Machinery A/C ----- 1,99,000
To lamp A/C ----- 7,041
Computer Printer A/C ----- 10,317
Motor Cycle (bike) A/C ----- 3,752
Air Condition A/C ----- 45,694
Fax Machinery A/C ----- 2,292
Television A/C ----- 4,175
Computer A/C ----- 64,427
Civil Exp. A/C ----- 31,785
Good will A/C ----- 3948019
Motor Car A/C ----- 11,65,948
Advance Given to Employees 17,500 -----
Sundry Debtors (Customers) ----- 2,74,517
Cash Account
Cash Book ----- 11,10,186
Bank Account
Dena Bank ----- 3,94,109
Current Assets
Closing Stock A/C (B/A) ----- 28,45,211
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Electric Item A/C ----- 51,624
Packing Stock A/C ----- 6,01,277
Grand Total of Balance Sheet 1,57,59,000.77 1,57,59,000.77
DHANHAR EXIM PVT. LTD goes to on the profit way comparing the year of 2009 -
2010. DHANHAR EXIM PVT. LTD has more profit in the year of 2010–2011. In the
year of 2009–2010 Gross Profit was Rs. 51, 66,835.92 and year of 2010–2011 Gross
Profit is Rs. 68, 44,209.19. So, it means Rs. 16, 77,373.27 more profit in the year of
2010–2011 comparing the year of 2009–2010. It’s good shine for the business because
DHANHAR EXIM PVT. LTD goes to on the profit way.
Analysis of P&L account and Balance Sheet by Ratio
Ratio of DHANHAR EXIM PVT. LTD
Ratio analysis is powerful tool of financial statement analysis. In financial statement
analysis a ratio analysis used as a band mark for evaluating the financial position and
performance of a firm. The absolute figures reported in the financial statement do not
provide meaningful understanding of the performance and financial position of firm. An
accounting figure coveys meaning when it is related to other information. The term ratio
refers to the numerical or quantitative relationship two variables regarding financial
performance, operational efficiency and profit margin with respect to companies over a
period of time and has but one companies within the same industries group.
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Liquidity Ratio:-
Amonnt
Liquidity Ratio 2011
1.Current ratio =Current assets 3498112
Current liability 9822394
0.356:1
Interpretation: If Current ratio is 2:1 then it is satisfactory but here current ratio is
0.356:1 so it is not satisfactory as per the accounting standard
2.Acid test ratio =liquid Assets 17,78,812
liquid Liability 98,22,394
0.181:1
Interpretation:If Acid test ratio is 1:1 then it is satisfactory but here Acid test ratio is
0.181:1 so it is not satisfactory as per the accounting standard
3.Long term fund to fix
Asset ratio =
Long term fund 9181205
Fixed assets 1534435.34
5.983441948
Interpretation: Long term fund to fix Asset ratio is 5.983so it is satisfactory as per the
accounting standard
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Profitibility ratio:-
Profitibility ratio 2011 (Amount)
1.Gross profit ratio = Gross profit * 100 68,44,209*100
Net sales 2,87,81,702
23.78 or 1:4.205
Interpretation:If Gross profit ratio is 1:4 then it is satisfactory but here Gross profit
ratio is 1:4.205 so it is satisfactory
2.Operating ratio =
COGS+Operating
exp.*100
289,70,10,056
Net Sales 2,87,81,702
99.96
Interpretation Operating ratio is 99.96 is so good for the company so it is satisfactory
as per the accounting standard
3.Net Profit ratioNet Profit*100 147398644
Net Sales 28781702
5.12126225
Interpretation :If Gross profit ratio is 1:3 then it is satisfactory but here net profit ratio is 5.121:1so it is satisfactory and it is very good for the company
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Efficiency Ratio:-
2011(Amount)
1.Stock Turnover ratio =Net Sales 28781702
Average inventory at cost 2044954.12
14.074498
Interpretation:this ratio show the how many time is turn over of the money or
investment here Stock Turnover ratio is 14.074 so it is one strength point of company
2.Debtors Turnover ratio =Debtor – BR *360 8953.81
Net Credit Sales Not Define
---------
3.Creditor Turnover ratio =Creditor – BP*360 5927172.7
Net Credit Purchase Not Define
----------
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6. Working Capital: -
Working capital to a company is like the blood to human body. It is the most vital
ingredient of a business. Working capital management if carried out effectively,
efficiently and consistently will assure the health of an organization.
Meaning:-
Working capital is defined as the excess of current assets over current liabilities.
Current assets are those assets which will be converted into cash within current
accounting period or within the next year as a result of ordinary operation of the business.
They are cash or near cash resources. This includes:
Cash and bank balance
Receivables
Inventory
Raw materials, stores and spares
Work in progress
Finished goods
Prepaid expenses
Short term advances
Temporary investment
The value represented by these assets circulates among several items. Cash is used to buy
raw material, to pay wages and to meet other manufacturing expenses. Finished goods are
produced. These are held as inventories. When these are sold account receivable brings
cash into the firm. The cycle starts again. This is shown in the following diagram.
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CashCash InventoriesInventories
Circulation of current assets
Particulars 2007 2006Current Assets
Inventories
Sundry debtors
Cash on hand
Bank account
Loans and advance
325843.00
265562.24
1006635.00
394109.93
-----
181545.00
108563.85
501120.00
-----
45000.00
A: Total Current Assets 1992150.17 1036228.85
Current Liabilities
Creditors
Advance for goods
Provisions
Other liabilities
527172.74
297100.00
544870.00
55000.00
325574.85
-----
348115.00
-----
B: Total Current Liabilities 1424142.74 673689.85
Working capital = (A-B) 568007.43 362539
Current liabilities are the debts of the firms that have to be paid during the current
accounting period or within a year. These include:
Short term goods purchased
Creditors for good
Out sstending expenses
Advances received against sales
STATEMENT OF WORKING CAPITALSTATEMENT OF WORKING CAPITAL
Formula to calculate Operating cycle is;
Operating Cycle = R+W+F+D-C
Raw material storage period :
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R = Average stock of raw material .
Average raw material consumption per day
= 15 days
Finished goods storage period :
F = Average finished stock inventory
Average cost of goods sold
= 1 day
Debtors collection period :
D = Average debtors .
Average credit sales per day
= 36 days
Credit payment period :
C = Average creditors .
Average credit purchase per day
= 20 days
Operating cycle = R + F + D – C
= 15 + 1 + 36 – 20
= 32 days
Internal audit policies:-
Internal audit system is very important for any Company. By the audit, management can
know where the company stands. This is the best way to control and remove deices.
Management can also easily know whether they are earning profit or incurring loss.
The balance sheet and profit and loss A/C of DHANHAR EXIM PVT. LTD is audited
every year at the end of the march.
An audit of DHANHAR EXIM PVT. LTD is conducted in accordance with auditing
standards generally accepted in India. Audit is planned and performed to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on test basis evidence supporting the amount
and disclosure in the financial statement. An audit above includes assessing the
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accounting principles used significant estimates made by the management as well as
evaluating the overall financial statement presentation. Here auditing is done half yearly.
The balance sheet and profit and loss A/C comply with the accounting standards referred
to in subsection 3-C of section 211 of the companies act 1956.
Types of Payment to Auditor Amount (Rs.)
Audit Fees 15000
Tax Audit Fees 5000
Other Matters 5000
Services Tax 1250
Finding
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1. Financial analysis of dhanhar exim pvt. Ltd.
This company current ratio is 0.356:1 is very poor as camper to the accounting
standard and also when we show the balance sheet of this company at a time I
mark current asset of dhanhar exim pvt. Ltd. Is very low as compare to the his
current liability. But his gross profit and net profit is very good and that reason is
their strong financial planning and management skill.
2. Marketing analysis of dhanhar exim pvt. Ltd.
Company produces their product when the they got the order so company’s
storage period of good is 1 or more then 3 days.
Company is now tread thru the e-commears so because of this they get the
advantage of treading in international market.
dhanhar exim pvt. Ltd. Provide to their customer quality promises offer in very
chipper price.
in spice market many rival firm so they do require the advertisement.
3. analysis of production department dhanhar exim pvt. Ltd.
dhanhar exim pvt. Ltd. produce their product as per the international standard and
hallmark standards like packing.
they mostly focus on test of the product as per the customers went.
4. analysis of human resource department
dhanhar exim pvt. Ltd. give fair wages to their labars and give promises of
minimum wages.
And whenever company adopt new technology at a time they give a training to
their laboar they work effectively on new machinery.
Company has maintain the employ relationship thru the bonus gift and welfare
activity .
Suggestion
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Improve the current ratio& acid test ratio.
Collection policy of the company is liberal so do the slimly strict.
Do some more promotional activity because of the some big rival firm
like.M.D.H & S.K they expense very big amount of money behind advertisement.
Very big Scope of the spice industry in forain country’s (uropian country)so
consentreat on this .
Use some automatic machinery so they achieve target production output can be
achieve easily.
Open new agency and acquire new agents for the covered the market and enter into
new markets.
Steps should be taken to increase the utility of the product.
Product should be improved as per the new preference.
updated with the advanced technology and latest trends of the market.
CONCLUSIONSCONCLUSIONS
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For the requirement of completion of 4th semester of B.B.A. We had undergo two
months summer training at DHANHAR EXIM PVT. LTD. Surat. With the objective
to gain Practical knowledge and experience in the company and to study the
activities of different functional area. It was good experience at DHANHAR EXIM
PVT. LTD. studying about the different department. On the other hand going for a
market survey was an invaluable addition to my Knowledge. To conclude in a
single student, I personally feel that 2 month Training at DHANHAR EXIM PVT.
LTD. has added many features to my knowledge wing which will definitely help
me to achieving a success during my future and career flight.
During my Training I found that this company is in a good and Strong Position.
This company has a very good management and staff of this company is a qualify
and high skilled. There is a good Co-ordination and confidence in the company.
The company’s chairman I aim to provide Better Product to customer. I am sure
that company achieve it’s goal in very short time.
BIBLIOGRAPHYBIBLIOGRAPHY
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Annual report of Dhanhar Exim Pvt. Ltd. Company
Reference Book: -
Marketing Management: By Philip Kotler
Production Management: By K.Ashwathapa
Finance Management By Bhagvati & Pillai
Human resource management By K. Ashwathapa
Website: -
http://www.tradeindia.com
http://surat.indiabizclub.com.
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