Project Report [Snehal]

8/14/2019 Project Report [Snehal]

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A

PROJECT REPORT ON

INDUSTRIAL TRAINING

AT

NATIONAL PROTEIN & SOLVENT LTD

SUBMITTED BY: GUIDED BY:

Patel Snehal R. Miss Jayshri Datta

S.Y.BBA/Div-B

Roll No.-116

Exam No. -

SUBMITTED TO:

SMT. S.B.PATEL INSTITUTE OF BUSINESS

MANAGEMENTVISNAGAR

HEMCHANDRACHARYA NORTH GUJARAT

UNIVERSITY,PATAN.

ACADEMIC YEAR 2009/10


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PREFACE

To study management means to get theoretical and practical

knowledge. Today the world has become more competitive so struggle is

more for human being. To get the job, theoretical as well as practical

knowledge is essential. Hence the study of management is very important.

Knowledge will come through experience. So to get experience management

arranges the training programme frequently.

As a part of B.B.A. curriculum and in order to gain practical knowledge

in the field of industrial aspects, we are required to do a practical training

work in an oil industry for the period of 21 days.

The basic objective behind the preparation of this project report is to

strengthen the fundamental knowledge about present oil industries in India

and its trend.

Obviously we owe an intellectual to all the people who supported us to

prepare and complete a mammoth like this.

I have done the project on industrial training of National Protein &

Solvent Ltd. I have collected information about marketing department,

finance department, personnel department, production department and other

organizational functions from the company itself and from Internet also. By


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preparing this report, I have tried to analyze finance situation and production

capacity of different products of the company.

ACKNOWLEDGEMENT

Practical training is one of the most important requirements in B.B.A.

We received a very graceful encouragement from our professor Miss Jayshree

Datta.

I am thankful to owners of the company and Accounts Manager Mr.

Ashvin Kansara for spending his valuable time with us and providing

necessary information required. I am also thankful to Shri Pravinbhai J. Modi

for granting us permission. I am also thankful to staff for their cooperative

behavior.

I am also thankful to our college authorities for conducting this

training. I would sincerely thank our principal Mr. Madhubhai Patel for

imparting us an opportunity to put us in the stream of practical management.

Snehal


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CONTENT

SR.

NO.

PARTICULARS PAGE

NO.

1. GENERAL INFORMATION

1.1 INDUSTRIAL PROFILE1.2 COMPANY PROFILE

1.2.1 NAME OF THE COMPANY

1.2.2 ADDRESS OF FACTORY

1.2.3 REGISTERED OFFICE

1.2.4 CORPORATE OFFICE

1.2.5 AUDITORS

1.2.6 BANKERS

1.2.7 BOARD OF DIRECTORS

1.3 SIZE OF UNIT & FORM OF ORGANIZATION

1.4 ORGANIZATION CHART

1.5 CONTRIBUTION OF THE UNIT

1.6 MISSION OF THE COMPANY

2 PRODUCTION DEPARTMENT

2.1 INTRODUCTION

2.2 PRODUCTION ORGANIZATION CHART

2.3 PRODUCT PLANNING

2.4 FRONTLINE PRODUCTS2.5 MANUFACTURING PROCESS

2.6 RAW OIL PROCESS

2.7 INSTALLED CAPACITY

3 PERSONNEL DEPARTMENT

3.1 INTRODUCTION

3.2 RECRUITMENT

3.3 SELECTION

3.4 WELFARE FACILITIES


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3.5 TIME KEEPING SYSTEM

3.6 TRAINING AND DEVELOPMENT

3.7 PRAMOTION & TRANSFER

3.8 PERFORMANCE APPRAISAL SYSTEM

3.9 WAGE & SALARY3.10 PROVIDENT FUND SCHEME

3.11 TRADE UNIONS

3.12 PERSONAL RECORDS

4 MARKETING DEPARTMENT

4.1 INTRODUCTION

4.2 ORGANIZATION STRUCTURE

4.3 PRICING POLICY

4.4 SALES PROMOTION4.5 MARKETING SEGMENTATION

4.6 DISTRIBUTION CHANNEL

4.7 ADVERTISING

4.8 MARKET RESEARCH

4.9 COMPETITORS


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5 FINANCE DEPARTMENT

5.1 INTRODUCTION

5.2 FINANCE ORGANIZATION CHART

5.3ORGANIZATION OF FINANCE

DEPARTMENT

5.4 PROJECT COST

5.5 CAPITAL STRUCTURE

5.6 GROSS PROFIT

5.7 NET PROFIT

5.8 UNSECURED LOAN

5.9 SALES5.10 RATIO ANALYSIS

6 COLLECTIVE BARGAINING

7 SWORT ANAYLSIS

8 FINDINGS

9 CONCLUSION

10 BIBLIOGRAPHY


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GENERAL

INFORMATION


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INDUSTRIAL PROFILE

What is Edible Oil?

Edible oil or cooking oil is purified fat of plant origin, which is usually

liquid at room temperature (Saturated oils such as coconut and palm are more

solid at room temperature than other oils).

Some of the many different kinds of edible vegetable oils include: olive

oil, palm oil, soybean oil, canola oil, pumpkin seed oil, corn oil, sunflower oil,

safflower oil, peanut oil, grape seed oil, sesame oil, argan oil and rice bran oil.

Many other kinds of vegetable oils are also used for cooking.

The generic term "vegetable oil" when used to label a cooking oil

product refers to a blend of a variety of oils often based on palm, corn,

soybean or sunflower oils.

Edible Oil Industry in India

Climatic conditions in India favor growing a variety of oilseeds. On the

demand side, a growing population and vastly varied dietary habits have

ensured a thriving market for edible oil in the country. In fact, there is a

substantial demand overhang, which is expected to continue for some years.At present, this is offset by imports that cater to almost half of the total

domestic consumption. With cheap imports threatening to cripple the

domestic industry, the government is walking a tightrope between filling the

demand supply gap and the political need to keep the domestic industry in

good health. Unorganized, medium and small players dominate the industry.

Hence, quality remains a concern. There is need for better regulatory controlto protect consumers.


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An average Indian's yearly edible oil requirement has gone up from 7.0 kg in

1996-97 to 11.8 kg in 2000-01. Despite the variety of oilseeds grown in India,

the country imports a substantial quantity of edible oil, which also works out

cheaper. Allied factors contributing to imports are the higher cost of

cultivation in India and uneconomic oil extraction systems.

Oilseeds in India account for around 5.0 percent of the Gross National

Product (GNP) and 14.0 percent of the country's area under cultivation of

crops. Castor, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower,

Sesame and Sunflower are some of the major oilseeds grown. India produces

10 percent of the world's oilseeds, but has a low productivity of around 850-

900 kg per hectare (compared to a world average of around 1,100-1,350 kg

per hectare).

The amount of oil extracted from the seed varies with the type and quality ofseed. In many cases, the oil recovery rate is upwards of 30.0 percent with

Sesame accounting for a high 45.0 percent.

Domestic consumption of edible oils has been growing at 4.0-5.0 percent a

year. The consumption in 2001-02 was around 25.75 million tons. Non-

packaged oils account for nearly 50.0 percent of consumption in both urbanapnd rural markets. In the remaining 50.0 percent contributed by packaged

oils, branded oils constitute a small portion of approximately 10.0-15.0

percent.


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COMPANY PROFILE

Name of the Company:

National Protein & Solvent Ltd.

Address of Factory:

Plot No. 447,448,450,452 to 455,

Dediyasan GIDC, Phase-II

Modhera Road, Mehsana-384002

Registered Office:

Plot No. 452 to 455,

Dediyasan GIDC, Phase-II

Modhera Road, Mehsana-384002

Corporate Office :

101,102, Neelkamal Complex,

B\h. Havmore Restaurant,

Navrangpura,

Ahmedabad 300009.

Auditors:

A.L. Thakkar & Co.

Chartered Accountants, Ahmedabad.

Bankers:

1) State Bank of Indore Ashram Road, Ahmedabad.

2) The Ranuj Nagrik Sahakari Bank Ltd.Malgodown, Mehsana.

3) HDFC Bank Ltd.Mehsana.


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Board Of Directors:

Shri Pravinbhai J. Modi. (Chairman & Executive Director)

Shri Bhagwanbhai B. Patel (Executive Director)

Shri Rameshbhai P. Modi (Executive Director)Shri Pankajbhai N. Patel (Executive Director)

Shri Arvindkumar A. Modi (Executive Director)

Shri Ravjibhai B. Patel (Executive Director)

Shri Unmesh R. Bhavsar (Executive Director)

Shri Amit V. Bhavsar (Executive Director)

Shri Nitin N. Bhavsar (Executive Director)

SIZE OF UNIT & FORM OF ORGANIZATION

Size of the organization refers to scale operation & capital employed in

the size of the organization. National Protein & Solvent Ltd. is a large scale

unit. Its total investment is more than 65 crores. The total land occupied is 20

hectors.

Form of organization differs in terms of capital contribution,

management & objectives. Generally there are three form of business

organization. They are as follow:

1. Public Organization

2. Private Organization

3. Co-operative organization

National Protein & Solvent Ltd. is the co-operative organization. It

can be defined as under:

A Co-operative organization is an association of persons usually of

limited means, who have voluntarily join together to achieve a common

economic and through the formation of a democratically controlled

organization, making equitable contribution to the capital required &

accepting a fair share of risk & benefits of the under taking.


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ORGANIZATION CHART

DIRECTOR

JOINT

DIRECTOR

H R

MANAGER

MANAGING

MANAGING

ACCOUNT

MANAGER

OTHERSTAFF

EMPLOYEES


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CONTRIBUTION OF THE UNIT

Contribution of an Industry is very important in industrialization. The

National Protein & Solvent is progressive company. The unit ismanufacturing good quality products and it has also created good market for

its product. The Selling of the product ofNational Protein & Solvent Ltd. is

increasing day by day, because the unit is maintaining better quality of

product. The production is also in large quantity.

National Protein & Solvent Ltd. has been established in 2002, andthen also it has a remarkable turnover. This unit contributes greatly to the

Industry. In future also the contribution of this unit will be more effective in

industry.

MISSION OF THE COMPANY

To be the best company in technology, quality, service for providing

better food products to the customers.

To produce quality product and also make selling growth very high.

Make good name in the market.


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PRODUCTION

DEPARTMENT


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INTRODUCTION

Production is the base of organization of out put if any product. There

are many products in National Protein & Solvent Ltd production department

is quite, intelligent and hard work.

Production is the sum of total four factor land, labour, capital and

entrepreneur by the help of these entire factors the organization can increase

its output and business.

Production means utility and energy to satisfy the want of people. It

covers all the activity of resources such as labour energy raw material

equipment and machines etc.


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PRODUCTION ORGANIZATION CHART

Production Manager

Supervisor R & D In charge

Labour Lab Assistant


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PRODUCT PLANNING

The National Protein & Solvent Ltd is producing edible oil.Forproduction of its product the unit is doing various types of planning.The unit

sales edible oil independently. It is responsible for the sale of oil.

Product Range:

The company has kept different names for different products and they

are as under:

1. Shreeji Soyabean oil

2. Oskar palm oil

3. Lijjat Vanaspati ghee

These are the products of National Protein & Solvent Ltd.These

products are refined and sold to the dealers, wholesalers or direct to

costumers. Hence the company has various types of product range to sell.

Product Category:

The product has different categories in weight. There are tins of metal of

various sizes. The soyabean oil, palm oil is packed in 15Kg tin, 5Kg tin. The

minimum size of tin is 600gm, 1kg tin.


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FRONTLINE PRODUCTS

Soyabean oil

Cottonseed oil

Palmolein oil

Sunflower oil

Mustard oil

Groundnut oil

Vanaspati oil


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MANUFACTURING PROCESS

Seed Processing and Solvent Extraction Plant

Seeds are cleaned to remove impurities like Stones, Broken Seeds,

Husks etc., cleaned seed are charged into hoppers through chain conveyor.

After opening of dumpers, seeds start to pour in Kettle of the machine, and

the steam will be directly passed through seeds. Centrally revolving clamped

shaft will mix the seed and steam to make seed soft and will push it to screw

press chamber of the machine. Cakes are cleaned to remove impurities like

husk, stones particles etc, through pre cleaner and destoner which will be

further fed to the Cracker Breaker to make small pieces. This cake can be fed

to the solvent extractor. In the solvent extractor cakes will be sprayed through

food grade Hexane and so on will extract the oil content (7 to 9 %) out of the

flakes. This mixer will be further fed to De solventiser Toaster to evaporate

hexane particles and oil particles. Output of the toaster section at bottom is De

Oil Cake and will be separately collected, conveyed and packed in Gunny

Bag or PP bag. Evaporated particles will be fed to Distillation and

recuperation section to depart oil and hexane. This recovered hexane will be

reused in the process. So produced raw grade oil will be required to go

through refining to produce refined Solvent extracted mustard oil.

Refining Process of Edible Oil

Refining means to remove impurities from the oil, which are not desirable.

Oil having two types of impurities

1. Oil soluble as coloring matter, odiferous compound, free fatty acid,

gummy materials etc.

2. Other types of impurities are oil insoluble as sand, seed fragment, dust,

straw etc.


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NPSL is using two methods for refining of raw oil.

1. Chemical Process

2. Physical Process

Vegetable oil refining consist of all necessary operations to which oil is

submitted in order to obtain a final product of which the color, taste, smell

and stability make it apt for human consumption. Most of the vegetable oils

contain impurities, such as fatty acids, phosphatides, pigments, metals etc.,

which have to be removed so as to obtain a product.

The different steps of the process depend upon the type and quality of the oil

to be treated.

Chemical Process

In chemical process impurities of oil is removed by the reaction of some

chemicals. The chemical refining consists in :

Acid conditioning Neutralization

Separation of gums and soap in centrifuge

Washing with water with separation of soap with centrifuge

Bleaching

Deodorizing

Physical Process

In physical process impurities are removed by physical method means, there

is no chemical reaction taking place.

Bleaching

Deodorizing


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Acid conditioning cum neutralizing process

De-gumming:

De-gumming is the process of removal of phosphatides and other limy or

mucilaginous material. The process consists of hydrating the gums by

subsequent removal by centrifugal separation. The oil obtained is then sent for

neutralization.

Bleaching:

The oil, after initial purification, is bleached by contact with activated earth

and charcoal to improve the color of the oil to acceptable levels. The process

also removes any soap traces left in the oil after water washing any other

metallic compounds present in the oil. The process consist of mixing the oil

with adequate quantities of bleaching earth, heating it for a specified time

temperature cycle followed by removal of bleaching earth from the oil by a

filtration process.

Deodorizing:

The bleached oil still needs deodorizing to remove impurities, which impart

objectionable odours or flavors to the oil. The oil is subjected to high

temperature and high vacuum conditions. The oil is cooled, mixed with

antioxidants and filtered. The final product is sold in the market as refinedvegetable oil.


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RAW OIL PROCESS

By crude oil is pumped

Heated with continuous exchange heater

Addition water

Pass through precipitation tank

Swelling of gums

Oil and hydrated gums are separated

Addition of phosphoric acid

Conditioning process

Neutralization of mixture

Addition of caustic lye

Separation of impurities

Washing of residual soap

Oil is transferred to vacuum dry

Spread through nozzle

Recovering refined oil

Reduction of color

Passes through bleacher

Explanation: -

Very first the crude oil is pumped at high temperature. It is heated with

continuous exchange of heater. In this pumped oil some portion of water is

added and it is allowed to pass through the precipitation tank. By this process


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the gums are purified. Here two parts are separated i.e. oil and hydrated gums.

In this mixture, there is an addition of a sophisticated acid for the conditioning

process. Then it is sent to another tank for the neutralization of mixture of oil

and hydrated gums. In this mixture there is an addition of caustic lye. By the

process of filter the impurities are separated from the mixture. After that the

oil is transferred to vacuum dry to dry it up. The oil is spread through the

nozzle of tank. Here the refined oil is recovered and the reduction of colour is

performed. For the final step the oil is passed to the bleacher.


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INSTALLED CAPACITY

Refining edible Oils 800TDP

Vanaspati Ghee 200TDP

The details of the proposed installed capacity of the unit are as follow:

Particulars %age of input MT pd. MT pd. MT pd.

De-gummedSoya Oil(DSO) 400 10000 120000

Crude Palm Oil(CPO) 400 10000 120000

Yield & bye-products

De-gummedSoya Oil(DSO) 97.5% 390 9750 117000

Refined Palm Oil 93.7% 374.8 9370 112440Transfer of refined oil to Vanaspati Section

RBD Soya Oil (10%) 975 11700

RBD palm (40%) 3750 45000

Sub Total 4725 56700

Add indigenous oils 100% 6 150 1800

Total of Vanaspati Section 4875 5850

Bye products

De-gummed Soya Oil(DSO)

Acid Oil 1.6% 6.4 160 1920

Deodistillate 0.2% 0.8 20 240

Palm fatty acid distillate 5.8% 23.2 580 6960

Final product mix

De-gummedSoya Oil(DSO) 114000 8775 105300

Refined Palm Oil 67500 5620 67440

HydrogenatedVanaspati Ghee 58500 4875 58500

Sub Total 240000 19270 231240

Acid Oil 2160 160 1920

Fatty Acid 6960 580 6960

Deodistillate Soya N.A. 20 240

Sub Total 9120 760 9120


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HUMAN

RESOURCESDEPARTMENT


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INTRODUCTION

Employees hold a key place in business-No business enterprises can

exists and function without employees. The success of business enterprise

depends, to a large extent of the quality of its personnel. Personnel

management is that part of the process of management which is specifically

concerned with the people employed in and organization.

The basic aim of personnel management is to create a satisfied

workforce its other objectives must not be over looked because they are

equally important.

The growth of the business depends mainly on the willingness and

ability of its employees.


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RECRUITMENT

Recruitment is a process of searching for prospective employees

and stimulate and encouraging them to apply for jobs in an organization.

form the social point of view recruitment is significant because it help in

discoursing talented & component workers, mobilizing labours & in better

utilization of human resources.

In National Protein & Solvent Ltd. recruitment of employees is

done by giving advertise for employment in local newspaper of mehsana

district and for recruitment of managers & other staff member it gives

advertise in Gujarat samachar, sandesh. There are 400 labours and 60

members in staff including clerks & manager in the company.

In this unit recruitment is done by various ways, like by

interview, by contract, or company contacts the educational institution if the

company requires workers for technical work then it contacts ITI institute. If

it requires managers then it contacts management institutes only males are

recruited in this company. There is no female in the whole unit.

Sources of Recruitment

1. Internal Sources

2. External Sources

1. Internal sources

Internal sources are carried inside the organization. These sources are

very crucial & beneficial to the organization such as,

Present Employees

Former Employees

Previous applicant

Friends & Relatives of present employees


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National Protein & Solvent uses all this sources of recruitment.

Present employees are given promotions it increases the morale & employees

get motivation.

2. External Sources

External sources are outside the organization sometime the

management of the company arranges recruitment form the external sources.

National Protein & Solvent recruits the employees from the external

sources such as:

Advertisement in newspaper:

Advertisement is the most effective means for recruitment

National Protein & Solvent gives advertisement for employment in regional

& local newspaper as well as other state circulated newspaper.

Database:

The whole database which is maintained in unit of those applicants whohave applied previously is checked and the applicants are given first

opportunities for job.


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SELECTION

Selection is the step of recruitment process. Selection means selecting

that person who possesses the necessary skills, ability, to work efficiently.

The objective of selection process is to determine whether an applicant meets

the qualification for a specific job and to choose the applicants who are most

likely to perform well in that job selection is deliberate effort of the

organization to a select a fixed number of persons from large number of

applicants.

Selection process involves number of steps through it is not necessary

to followed each step for every job. Organization may follow some steps and

may exclude some steps form selection process. There may be different stages

of selection process for different kind of job.

In National Protein & Solvent for selecting the employees there is onecommittee. This selection committee selects the person by taking at interview

and oral and written questions are asked to the persons who came of selection.

And then if the person is proper for a particular job. He is selected by the

committee or HR manager.

In National Protein & Solvent Ltd. there is no special induction

process but it follows simple induction program such as introduction of new

employees is done with other employees and he is guided for his job &

necessary information is given so that he can adjust himself easily in the

organization.


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WELFARE SERVICES

The unit provides some kind of welfare activities to its employees.

Canteen Facility:

In the company there the canteen facility is available to the employees

at a reasonable rate canteen facility provide a dish of food at RS. 15/- which is

affordable by employees.

Quarters Facility:

The company provides quarters to manager, clerks and employer for

living.

Transportation Facility:

The company provides transportation facility for workers & others staff

members. There is a bus which is used ad transportation facility. The bus

facility is given for those who are coming from near by village or from

mehsana.

Bonus:

National Protein & Solvent Ltd. gives bonus to its workers at the time

of Diwali. Bonus is given at the rate of 20% of the annual income of workers.

For working overtime the workers is given extra wages.


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TIME KEEPING SYSTEM

In National Protein & Solvent Ltd. has the time-keeping system. Each

employee when enters in the company the time of entering is recorded by the

watchmen & when the employees come out from the company the time is

recorded again by watchman so that the employees working period of time

can be known.

There are 3 shifts:

First shift - 8:00am to 4:00pm

Second shift - 4:00pm to 12:00pm

Third shift - 12:00pm to 8:00am

The recess time is of one hour during the shifts.

For officers office is 10:00am to 6:00pm and presence is marked on registered

cards. The plant is working continuously for 24 hours. The company

concentrates more on punctuality of time. So if the employee is late than his

time of coming then his wages is being cut down.


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TRAINING AND DEVELOPMENT

Training is given for such reasons:

To improve the efficiency of the employees.

To increase productivity by imparting ledge about the correct method of

work.

To increase the skill of the employees & there by help them in getting

promotion.

To inculcate in the minds of the employees favorable attitudes to work.


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PROMOTION & TRANSFER POLICY

PROMOTION:

Promotion means advancement in job & Increase in authority,

responsibility & pay scale of employees.

Transfer refers to change of job with in organization to same position in

another department with same authority & responsibility. Most organization

promote their employees either on & basis of their seniority or offer taking in

to account their competency & qualification. The usual policy is to take merit

in to consideration. Some time length of services, education-training courses

completed previous work history etc are the factors, which are given more

weight while deciding for promotion.

In National Protein & Solvent Plant, while giving promotion to the

employee they do not consider experience of educational qualifications but

the behavior of employee, honestly, ability & merit are the main factor on

basis of which promotion given.

Promotion to the employees is given by the HR manager of the unit &

to the managers it is given by the managing directors.

TRANSFER

Transfer policy in National Protein & Solvent is in such way that the

employees get transfer from one department to another because of their work

experience, skills, specialty & efficiency. The employees are transferred by

HR manager of the unit.


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PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is systematic, periodic & so far as humanly

possible, an impartial rating of an employees excellence in matters pertaining

to his present job & to this potentialities for company, of a mans services on

his job. The main purpose of the performance appraisal is to provide

systemization judgement to back up salary increases, transfer, demotion or

termination. They are used as a base for coaching & counseling the individual

by the superior there are so many method used for performance appraisal like

ranking system. Rating sales forced choice etc.

National Protein & Solvent Ltd. is not using any specific method for

performance appraisal. It takes into account performance appraisal of person

only when promotion is to be given. And if the worker is efficient and

possesses the necessary skills and working capacity then the HR manager of

the unit gives promotion to him by increasing post or salary.


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WAGE & SALARY

Wages means the amount paid to the labours for the work and salary

means the remuneration paid to the clerks or managers on monthly or annual

basis.

The wages & salary depends on experience knowledge and educational

qualification of the person.

National Protein & Solventpays wages to the employees according to

their working period of time or per day RS. 80 to 100. Their working period is

8- hours.

The staff members & managers are given above RS. 5000/- per month.

The salary of manager is decided by the management.


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PROVIDENT FUND SCHEME

Every co-operative organization mostly provides provident fund

scheme to the employees. Various schemes are provided by the organization

to the workers for satisfying them.

National Protein & Solvent Ltd. also provides the various schemes to

attract more & more present from which the unit provides the provident fund

scheme, at a rate of 12% provident fund is very helpful for the employees. So

every co-operative organization tries to provide more & more schemes for the

employees. Apart from this loan facilities are provided at a reasonable rate of

interest are given at time of any critical requirement.

Provident fund: - 10% from employees salary

2% Companys Contribution.


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TRADE UNIONS

Trade union is nothing but a union of labours. If the employees

demands something & the organization is not ready, in that circumstances,

trade union become very useful for the employees. It means trade union is

nothing but a union of the employees to satisfy their demands & conditions

speedily.

In National Protein & Solvent there is trade union of labour. Not a

single union is there. If any body try to make the union than the Gujarat edible

Oil can drive away them from the plant. So for this reason no one can try to

make union of the labour & also no one can join in to the union. So this is the

most disadvantage of this plant as point of view of labours. and advantageous

for the company.


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PERSONNEL RECORDS

A records is an account or statement describing in detail an event

happening, a situation or evaluating an enterprise or a product that is proposed

to be manufactured. Many organization keep records of their personnel with

different information about each employee with variety of details, about his

name, skills, qualifications, abilities, experience, age, address, family

background etc.

In National Protein & Solvent Ltd. detailed records about their

personnel are not kept but general information regarding each employee is

kept which may be useful sometime. In National Protein & Solvent they

keep personnel records with following informations.

Name with surname, Fathers name, Date &Place of Birth, Age, Sex,

Nationality marital status, cast & Religions, present & permanent Address,

Date of confirmation & appointment department in which he is posted.

Information about family & Educational Qualifications.


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MARKETING

DEPARTMENT


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INTRODUCTION

A unit can be successful if it adopts a better marketing system

marketing is system which includes business activities like planning,

distributing & selling satisfied products to the consumers. If marketing done

in better way then more profit can be earned from the product.

National Protein & Solvent Ltd. is also doing marketing activities

such as product planning, distributing products to the wholesalers, retailers

and deciding pricing policies.

Marketing management is a process of a system which helps to providegood quality of the products to the customers, according to demand of the

customers.


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ORGANISATION STRUCTURE


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PRICING POLICY

Price is the main feature of the product because the price of any productdepends on its quality. So, the Gujarat Edible Oil decides its prices according

to the quality and also affordable by the costumers.

This unit is operating on a co-operative basis with the aim of providing

maximum social welfare services to the people and also providing a better

quality of oil.

Gujarat Edible Oil does not give more commission or discount to

wholesaler and intermediary. Because it is not selling its product at a high

price or not earning more profit on a product. It earns a few percentages of

profit.

It sells the product by earning minimum profit. It prices which can

affordable for customers. The prices of soyabean oil, palm oil are being

changed daily.

But average price for 15Kg tin for soyabean oil palm oil is RS.600/-.

Some time it increases or decreases.


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SALES PROMOTION

Sales promotion includes all those short-term marketing activities,

other than personal selling, advertising, publicity which stimulated consumer

purchasing effectiveness. Its main objective is to increase the buying response

by ultimate users.

There are two kinds of sales promotion consumer sales promotion &

Dealer sales promotion. Sales promotion such as coupons, cash refund offers

if product is defective, prizes, free trials, warranties etc.

National Protein & Solvent Ltd. is applying the tools for sales

promotion such as giving prizes, discount on purchase of more goods,

coupons are given with the product in which there are chances to win the

prizes.

Sales Promotion Diagram:

Manufacturer

Advertising

Agency

Dealer

Retailer

Customers


44/85

MARKETING SEGMENTATION

National Protein & Solvent Ltd. is producing edible oil and market

segmentation is not possible on the basis of product.

But there are traders some are big and some are small who are

purchasing oil from the company regularly. It is purchased daily by some

traders and there are stockiest also. When the price is low they purchase oil

and keep stock of it and when the price increases they sell to costumers.

These types of traders are not buying oil regularly.


45/85

DISTRIBUTION CHANNEL

DISTRIBUTION NETWORK

A channel of distribution is a group of individual and organization to

which directs the flow of products form produces to customers. The main

function of this element is to find out appropriate ways through which goods

are made available to the costumers.

National Protein & Solvent Ltd. has adopted a simple distribution

channel it distributes the produced good to the wholesaler and wholesaler

distributes to retailers & retailer to costumers. The goods are distributed

directly to the retailers also. And to the stockiest, stockiest sells those goods

to the customers when the prices are increased then their purchasing price. So

it has a simple distribution channel.

The unit also distributes the products to other states like Haryana, Uttar

Pradesh, Punjab, and it distributed to the cities like Ahmedabad, Surat,

Mehsana and Vadodara in Gujarat.

Agent

Company

Dealers

Retailers

Consumers


46/85

ADVERTISING

Advertising is activity of presenting the ideas, goods, services of a

company that company has to sponsor it does advertise.

The main objective of advertisement is bring awareness and

knowledge of new product or changes in the quality of existing product,

among people. There are various kinds of advertising such as information, it

gives knowledge about new product reminder advertise stimulate repeat

purchase of product & services. Advertising is mainly at commercial

transaction. Advertising influences the buying behavior of consumer.

National Protein & Solvent Ltd. gives advertise for making

people aware of its new product or changes in the quality of existing product.

It gives advertise in newspapers such as Gujarat samachar. It gives advertise

of products such as refined soyabean, palm oil.


47/85

MARKET RESEARCH

Marketing research is considered with investing, analysis &

measurement of market demand. It is only one branch of marketing in

formation system. It is a study of actual & potential buyers. It includes

attitudes of dealers at market place, analysis of sales data, analysis of market

share of a firm etc

Marketing Research includes:

Consumer research

Sales research

Advertising research

Market research

Pricing research

Product research

Distribution channel research

National Protein & Solvent Ltd. does marketing research by survey

of wholesaler, retailers, and costumers. It knows about the problems of

costumers for not buying the product by asking the customers or retailers and

tries to solve the problem faced by the customers.


48/85


49/85

FINANCE

DEPARTMENT


50/85

INTRODUCTION

Finance is the lifeblood for every business for any organization finance

plays an important role for its success without finance no one can start his or

her business. So finance is the base for starting any industry. Financial

management is concern with the planning & controlling of the firms financial

sources. We need financial for the production of good and services as well as

their distribution the efficiency of product & market operations is directly

influences by the enterprise is performed by the financial personnel. Finance

function assured an important role in business system & it should be given

equal important as with production & marketing function.

It has been said that business takes money to make money. This is not

true the statement needs correction. If you have money, and you manage it

properly you will make more money. This management of finance is

important for all. Finance is that part of managerial activity which is

concerned with planning and controlling of the firms financial resources.

In National Protein & Solvent plant there is not a separate finance

department but there is an account department in which financial activities are

being done in the finance department.

Here finance department working under the asst. manager (F&A)

namely Mr. Ashwin kansara. Due to have efficient skills & abilities Gujarat

Edible oil did not face any financial problems


51/85

ORGANIZATION CHART

Finance Manager

Assistant of Finance Manager

Accountant

Clerk

Computer Operator


52/85

ORGANIZATION OF FINANCE DEPARTMENT

Finance management begins on important function of business

organization of finance department has to be properly formed. In financial

management three aspects should be given due importance. Viz,

capitalization, wise allocation of capital and rising of fund activities.

Organization of finance department means the division and the

classification of various functions, which are to be performed by the finance

department. So in this regard the major decisions to be taken by the finance

department are:

1. Investment Decision

2. Financing Decision

3. Dividend Decision

4. Liquidity Decision

In National Protein & Solvent Ltd. finance department is done

according to size & nature of the business. All Financial decisions are taken in

this department and financial functions are done effectively.

Construction Section Area Amount

(in lacs)

Productive Section 6280 Sq.mtr.

@5500per Sq.mtr.

343.90

Manufacturing Section 1920 Sq.mtr.

@4600per Sq.mtr.

88.30

Packing & Utility 4428 Sq.mtr

@3600.

159.40

Cold Room 2052 Sq.mtr.

@4600

94.40


53/85

Cost of developing of pack, loading &

Unloading

30000 Sq.mtr. 90.00

Cost of Boundry 50.00

Plant, foundation, Chimeny boilerhouse etc.

577.10

Total 1403.10


54/85

PROJECT COST

The total cost of the project is Rs.69.04 crores with details as under:

RS. Lacs

Land cost and registration 325

Construction cost 1403

Plant and machinery 2795

Testing equipments 25

Contingencies 118

Misc. assets (power plant/storage tanks) 832

Prelim and prop exp. 207

Margin for working capital 1199

Total 6904


55/85

CAPITAL STRUCTURE

Capitalization means the total value of all the securities i.e. share and

debentures issued by a company and reserves, surplus and value of all other long-

term obligation. The firm includes:

The value of ordinary and preference shares.

The value of all surplus earned and capital.

The value of bonds & Securities still not redeemed.

The value of long-term loan.

Capitalization is used in its quantitative aspect and refers to the amount at

which a companys business can be valued.

Name Rupees

2006-07

Rupees

2007-08

Rupees

2008-09

Partners Capital 662775.15 3528253.43 3722004.97

Secured loans 3088649.47 3017065.47 3028991.47

Unsecured loans 6780636.41 6307627.41 7386347.00

Sundry creditors 449967.70 1565291.76 1974382.00


56/85

GROSS PROFIT

Year Profit (Rs.)

2006-07 2882461.34

2007-08 4135440.36

2008-09 4536761.11

GROSS PROFIT

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

2006-07 2007-08 2008-09

PROFIT


57/85

NET PROFIT

Year Profit (Rs.)

2006-07 325488.50

2007-08 337388.87

2008-09 1076905.54

NET PROFIT

0

200000

400000

600000

800000

1000000

1200000

2006-07 2007-08 2008-09

PROFIT


58/85

UNSECURED LOAN

UNSECURED LOAN

Year Amount (Rs.)

2006-07 6307627.41

2007-08 7386347.00

2008-09 12175347.00


59/85

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2006-07 2007-08 2008-09

AMOUNT


60/85

SALES OF LAST THREE YEARS

Year Sales (Rs.)

2006-2007 13690701.39

2007-2008 22613320.11

2008-2009 34964627.97


61/85

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

2006-07 2007-08 2008-09

sales


62/85

RATIO ANALYSIS

Ratio analysis is one of the techniques of financial analysis where ratios

are used as a yardstick for evaluating the financial condition and performance

of a firm.

Ratios may be classified according to functions or tests as solvency,

liquidity, or profitability ratios and according to nature as leverage ratios and

activity ratios.

Liquidity ratios:

A liquidity ratio is a ratio, which points out whether there are sufficient

liquid resources to meet the short-term liabilities. They are meant to

measure the companys financial strength to meet current obligations.

Current Ratio:

Current AssetsCurrent Ratio =

Current Liability

For year: 2007-2008

9,07,81,827

=

2, 00, 51,045

= 4.53

For Year : 2006-2007

10,80,93,170

=

3,20,73,442

= 3.3


63/85

For Year : 2005-2006

6,05,61,079

=

1,32,52,513

= 4.57

This current ratio measure the firms ability meet it current

obligation. Generally 2:1 ratio is preferable here the current ratio is

high because of high current that represent the first high ability school

and to meet current moment there obligation. In year 2004-2005 and

2005-2006 and 2006-2007 are lot of the 4.57 and 3.3 and 4.53

respectively.

Quick Ratio:Current Assets - Investment

=

Current Liability

For year:2007-2008

1, 34,06,966=

2,00,51,045

= 0.67

For year : 2006-2007

2,61,05,501

=

3,20,73,442

= 0.81For year : 2005-2006

43,92,611

=

1,32,52,513

= 0.33


64/85

Quick ratio represents the company ability to meet its immediate

obligation. Here the ratio is whole year the ratio excludes the inventory

and bank over staff. Here the ratio year 2004-2005 and 2005-2006 and

2006-2007 are 0.81 and 0.33 and 0.67 respectively.

Net Working Capital:

Net working capital means the different between current assets &

current liabilities : excluding short term bank borrowing is net working

capital or are as firms liquidity.

Net working capital

=

Net Assets

NET WORKING CAPITAL: Current Assets Current Liabilities

NET ASSETS: Fixed Assets + Current Assets Current Liabilities

For year : 2007-2008 7, 07, 30,782

=

5, 43, 08,126

= 1.30

For year : 2006-2007

7, 60, 19,728

= 13,3,27,854

= 0.58

For year : 2005-2006

4, 73, 08,566

=

10, 95, 02,581

= 0.43


65/85

The ratio shows the proportion of the working capital in net

assets. If the ratio is high than the more proportion of working capital in

total assets. If the ratio is higher than the working capital remain idle

and the ratio is lower than the it is bed for the company. Here the ratio

for year 2004-2005 and 2005-2006 and 2006-2007 are 0.43 and 0.58

and 1.30 respectively.

Solvency ratios:

These are long-term ratios, a pointer to the future and long-term

solvency of the company in which creditors, bankers and financial

institutions have great stake.

Debts Equity Ratio :Total debts

=

Net worth

TOTAL DEBTS = Secured Loan + Unsecured Loan + Sundry Debtors

NET WORTH = Share Capital + Reserve & Surplus

For year : 2007-2008

11, 48, 98,031

=

9, 95, 39,318

= 1.15

For year : 2006-2007

11, 09, 37,521

=

4, 39, 61,236

= 2.52


66/85

For year : 2005-2006

7, 10, 21,402

=

4, 46, 21,875

= 1.59

The debt equity ratio describes lenders contribution for each

rupee of the owners contribution. Here the debts equity ratio for the

year 2004-2005 and 2005-2006 and 2006-2007 are 1.59 and 2.52 and

1.15 respectively.

Debts Ratio:

The some type of debts may be used analysis the large term

solvency of a firm. The total debt will include the short term and long

term borrowing from financial justitution, debenture, differed payment

agreement for laying capital equipment bank borrowing public depositand other interest bearing loan.

Total debts

DEBTS RATIO =

Net assets

For Year: 2007-2008

11, 48, 98,031

= 7, 64, 36,744

= 1.50For year: 2006-2007

11, 09, 37,521

=

5, 43, 08,126

= 2.04


67/85

For year: 2005-2006

7, 10, 21,402

=

6, 21, 94,015

= 1.14

Here by looking this figures debts ratio. We that there is gradual

change in the level of propriety funds rashers than wanders contribution

on year 2004-2005 and 2005-2006 and 2006-2007 the debts ratio of

1.14 and 2.04 and 1.50 respectively.

Activity ratios:

These ratios establish a relationship between sales and various

assets of the firm, how well the assets are being made use of and the

speed with which they are converted into sales.

SalesNET ASSETS TURN RATIO =

Net assets

For year: 2007-2008

1,22,02,50,025

=

7, 64, 36,744

= 15.96

For year: 2006-2007

74, 42, 86,332=

5, 43, 08,126

= 13.70

For year: 2005-2006

50, 57, 69,997

=

6, 21, 94,015

= 8.13


68/85

Net assets turn over measures the company ability of sales for a

given level of assets. A firms ability to produce a large volume of sales

for a given amount of net assets is the most important aspects of itsoperating performance. Here this ratio is high in year 2004-2005 and

2005-2006 and 2006-2007 are 8.13 and 13.70 and 15.96 respectively.

Total Assets Turn Over Ratio:

Total assets turn over ratio is computed on the total assets turn

over in addition to or instead of assets turn over. This ratio shoes the

firms ability in generation sales from all financial resources committed

total assets.

Sales

Total Assets Turn Over Ratio =

Total assets

Total assets = Current assets + Fixed assets

For year: 2007-2008

1,22,02,50,025

=

22, 13, 96,880

= 5.51For year: 2006-2007

74, 42, 86,332

= 21, 08, 84,629

= 3.52

For year: 2005-2006

50, 57, 69,997

=

9, 62, 50,068

= 5.25


69/85

The ratio indicated the relationship between sales & total assets.

This ratio that how much sales in generated by company with given of

level of total assets. This ratio for year of 2004-2005 and 2005-2006

and 2006-2007 are 5.25 and 3.52 and 5.51 respectively.

Fixed Assets Turn Over Ratio:

The fixed assets turn over is established relationship between

companys fixed assets with its sales.

Sales

=Fixed assets

For year: 2007-2008

1,22,02,50,025

=

7, 64, 36,744

= 15.96

For year: 2006-2007 74,42,86,332

=

5, 43, 08,126

= 13.70For year: 2005-2006

50, 57, 69,997

=

6, 21, 94,015

= 8.13

The fixed assets turn over shows the sales of accompany for a given

level of fixed assets means. How much sales generated by a company

has a good performance. The ratio for year 2004-2005 and 2005-2006

and 2006-2007are 8.13 and 13.70 and 15.96 respectively.


70/85

Current Assets Turn Over Ratio:

The current assets turn over means the relationship firms current

assets with the sales.

Sales

Current Assets Turn Over Ratio =

Current assets

For year: 2007-2008

1,22,02,50,025

=

9,07,81,827

= 13.44

For year : 2006-2007

74,42,86,332

=

10,80,93,170

= 6.89For year : 2005-2006

50,57,69,997

=

6,05,61,079

= 8.35

The current assets turn over ratio of any firm shows the

relationship between the company sales with its Current assts. Here by

looking the figures of current assets turn over ratio we find that there is

a continuity of ratio, which may the positive impact of the companys

sales or the maintaining current assets as what the company is required.


71/85

Profitability ratios:

Ratios that are meant to measure the profit-earning capacity of

the firm in its business operation fall under this category.

Gross Profit Margin Ratio:

The gross profit margin ratio of firm is the ratio of company

gross profit divided by sales.

Gross profit

= * 100

Sales

GROSS PROFIT = Sales Cost of good sold

COST OF GOOD SOLD =Opening stock + Purchase + Purchase Exp.

- Closing stock

For year 2007-20081,23,03,06,189

=

1,22,02,50,025

= 100.82For year: 2006-2007

71, 99, 74,734

= * 100

74, 42, 86,332

= 96.73

For year: 2005-2006

45, 19, 46,426

= * 100

50, 57, 69,997

= 89.36


72/85

The gross profit margin ratio reflect the efficiency with which

management product each unit of products. If the ratio is high the

management is more efficiency the low gross profit margin ratio

indicates the lower cost of goods sold due to inability of management

Net Profit Margin Ratio:

The net profit margin ratio is show the companys profit position

we derived the formula of net profit margin ratio.

Profit after tax= * 100

Sales

For year: 2007-2008

1, 88, 71,082= * 100

1,22,02,50,025

=1.55For year: 2006-2007

13, 39,361

= * 100

74, 42, 86,332

= 0.18

For year: 2005-2006

7, 74,831

= * 100

50, 57, 69,997

= 0.15

This ratio expresses the companies over all ability of

generation each rupees of profit is a sales. It expresses the companys

ability of manufacturing, administrating and selling the product. The

ratio of 2004-2005 and 2005-2006 and 2006-2007 are 0.15 and 0.18

and 1.55 respectively.


73/85

COLLECTIVE

BARGAINING


74/85

Collective bargaining is essentially a process in which employee act as a

group in seeking to shape conditions and relationship in their employment.

We can say about collective bargaining a tree is known by its shape

fruits etc. like wise collective bargaining may best be known by its

characteristics. In National Protein & Solvent Ltd. has pointed out the

following functions.

1. Achieve an efficient functioning of the organization.

2. Lay down fair rates of wages and other norms of wearing

conditions.

3. To secure a prompt and fair rates of wages and other norms to

working conditions.

4. To establish uniform conditions of employment.

5. To increase the economic strength of employees and management.

6. To promote the stability and prosperity of the company.

7. To provide a method of the regulation of the conditions of

employment.

Industrial harmony is essential for economic progress. By the way of

collective bargaining an industry may grow rapidly and firmly. Collective

bargaining has much importance in the field to management.


75/85


76/85


77/85

FINDINGS


78/85

1. Company should make some concrete effort towards

advertisement to create brand awareness of the company.

2. Company needs its publicity in big and it can be done by road

shows advertisement as well as by hording.

3. They believe in recruit of attitude and train for skills. They dont

believe ideas are the monopoly of seniors only.

4. Benefit, association and growing in volumes and intensity of

relationship with clients.

5. Manufactures should raise public awareness about GEOL issued

through seminar etc.

6. Company should not be dependent on distributors & dealers for

sales. They should develop their own distribution network.

7. The company should offer consumers, retailer and distributor

schemes.

8. There should be more inclement of workers as well as field force

in development innovative packaging and promotional sales.


79/85

CONCLUSION


80/85


81/85

B IBILIOGRAPHY

For preparation of this project report we have benefited from some

Websites, books and article. The lists are given below.

http://www.oilandgaseurasia.com/articles/p/102/article/970/

http://www.google.co.in

http://www.wikipedia.org

FINANCE MANAGEMENT:-

Prasanna Chandra

I.M. Pandey

Khan & Jain

MARKETING MANAGEMENT:-

Philip Kotler

PERSONNAL MANAGEMENT:-

C. B. Mamoria

Pro. Varma & Agrawal
http://www.google.co.in/http://www.google.co.in/


82/85

ANNUXURE


83/85

NATIONAL PROTEIN&SOLVENT LTD.

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2008

PARTICULER SCHEDULE 31.03.2008 31.03.2007

INCOME

Sales

Other income

Stock increase (+) / Decrease(-)

I

J

122025002

128443

744286332

2448552

1220378468 746734884

9927721 -26760150

1230306189 719974734EXPENDITURE

Raw material

Manufacturing expenses

Salaries & wages

Administrative expenses

Interest & finance charges

Selling expenses

Depreciation

Misc. Expenditure Written off

L

M

N

O

p

Q

1097571237

49851565

8932259

2898148

7988894

25874508

6080998

61000

642208628

29829815

4703841

1356365

6603027

26238089

6963681

6818

1199258608 717910265

Profit Before Taxation

Less: Provision for income tax

Current tax

Deferred tax

Previous year

Fringe benefit tax

Profit after taxation

Add: balance as per last year

31047581

12233000

-88377

6800

25076

18871082

2064469

1440000

-733519

12627

0

1339361

20062235 18722874

38933317 20062235


84/85

Appropriations

General reserve

Proposed dividend

Balance carried to balance sheet

0

0

38933317

0

0

20062235

Total Appropriations 38933317 20062235

For, National protein & Solvent Limited

NATIONAL PROTEIN&SOLVENT LTD.

BALANCE SHEET AS ON 31ST MARCH 2008

PARTICULER SCHEDULE 31.03.2008 31.03.2007

Source of funds:

Share holder funds

Share capital

Share application money

Reserve & surplus

A

B

42252500

0

57286818

23899000

2000000

20062236

99539318 45961236

Loan fundSecured loan

Unsecured loan

Total

C

D

65175052

43599332

108774384

74521088

13224537

87745625

208313702 133706861

Application of fund

Fixed assets

Gross block

Less: depreciation

Net block

E 130615053

-54178308

102791459

-48483332

76436744 54308126

Investment 0 0


85/85

Current assets, loan & advance

a. inventories

b. sundry debtor

c. cash & bank balance

d. loan & advance

F

77374861

6123647

7283319

72903472

81987669

23191896

2913605

5549255

(i) 163685293 113642419

Less: current liabilities and provision

a. current liabilities

b. provision

Net current assets

G

(ii)

(i-ii)

20051045

12233000

32073442

1440000

32284045 335135442131401249 80128977

Differed tax assets -641866

1117575

-730243

0Misc. expenditure

(to the extent not written off)

H

Total 208313702 133706861

For, National protein & Solvent Limited

Documents

Project Report [Snehal]